Document:

Exhibit 10.9

 

 

SECOND AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

SCOTT W. SMITH

 

This SECOND AMENDED
AND RESTATED EMPLOYMENT AGREEMENT, effective as of August 1, 2017 (the “Effective Date”), is by and
between Vanguard Natural Resources, Inc. (“VNR”, together with its subsidiaries, the “Company”)
and Scott W. Smith (“Executive”).

 

WHEREAS, VNR
Holdings, LLC (“Holdings”), Vanguard Natural Resources, LLC (“Parent”) and
Executive previously entered into that certain Amended and Restated Employment Agreement dated January 1, 2016 (the “Prior
Agreement”);

 

WHEREAS, Holdings
and Parent and certain of their affiliates filed for relief under chapter 11 of title 11 of the United States Code in the Bankruptcy
Court for the Southern District of Texas, Houston Division and were proponents of the Amended Joint Plan of Reorganization of Vanguard
Natural Resources, LLC, et. al., Pursuant to Chapter 11 of the Bankruptcy Code (as amended, modified or supplemented, the “Reorganization”);

 

WHEREAS, the
parties hereby agree that the Prior Agreement is terminated as of the Effective Date and is replaced in its entirety with this
Second Amended and Restated Employment Agreement (this “Agreement”);

 

WHEREAS, VNR
desires to continue to employ Executive, and Executive desires to continue to be employed by VNR; and

 

WHEREAS, the
parties desire to set forth in writing the terms and conditions of their understandings and agreements in this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants and obligations contained herein, VNR hereby agrees to employ Executive and Executive
hereby accepts such employment upon the terms and conditions set forth in this Agreement:

 

1.       Employment
Period.

 

(a)       Subject
to Section 5, VNR hereby agrees to employ Executive, and Executive hereby agrees to be employed by VNR, in accordance with
the terms and provisions of this Agreement, for the period commencing as of the Effective Date and ending on January 1, 2019
(the “Employment Period”); provided, however, that the Employment Period shall automatically be renewed
and extended for an additional period of twelve (12) months commencing on January 1, 2019 and expiring on January 1,
2020, and on each successive January 1 thereafter, unless at least ninety (90) days prior to the ensuing expiration date
(but no more than twelve (12) months prior to such expiration date), VNR or Executive shall have given ninety (90) days
written notice to the other that it or he, as applicable, does not wish to extend this Agreement (a “Non-Renewal
Notice”). The term “Employment Period” as utilized in this Agreement, shall refer to the
Employment Period as so automatically extended.

 

(b)       During
the term of Executive’s employment with VNR, Executive shall serve as the President and Chief Executive Officer of VNR and
in so doing, shall report to the Board of Managers or Directors, as applicable, of VNR (the “Board”).
In addition, Executive shall serve as a member of the Board of VNR unless removed by a vote of the shareholders or unless the Nominating
Committee of the Board fails to nominate Executive. Executive shall have supervision and control over, and responsibility for,
such management and operational functions of the Company currently assigned to such positions, and shall have such other powers
and duties (including holding officer positions with VNR and one or more subsidiaries of VNR) as may from time to time be prescribed
by the Board, so long as such powers and duties are reasonable and customary for the President and Chief Executive Officer of an
enterprise comparable to the Company.

 

     

     

    

 

(c)       During
the term of Executive’s employment with VNR, and excluding any periods of vacation and sick leave to which Executive is entitled,
Executive agrees to devote substantially all of his business time to the business and affairs of VNR and, to the extent necessary
to discharge the responsibilities assigned to Executive hereunder or by the Board hereafter, to use Executive’s reasonable
best efforts to perform faithfully, effectively and efficiently such responsibilities. During the term of Executive’s employment
with VNR, it shall not be a violation of this Agreement for Executive to (i) serve on corporate, civic or charitable boards
or committees, provided that service on any corporate board or committee shall be subject to the prior approval of the Board, which
shall not be unreasonably withheld (ii) deliver lectures or fulfill speaking engagements and (iii) manage personal investments,
so long as such activities do not materially interfere with the performance of Executive’s responsibilities as an employee
of the Company in accordance with this Agreement.

 

(d)       The
parties expressly acknowledge that any performance of Executive’s responsibilities hereunder shall necessitate, and the Company
shall provide, access to or the disclosure of Confidential Information (as defined in Section 9(a) below) to Executive and
that Executive’s responsibilities shall include the development of the Company’s goodwill through Executive’s
contacts with the Company’s customers and suppliers.

 

2.       Compensation.

 

(a)       Base
Salary. VNR shall pay Executive an annual base salary (“Base Salary”) at the rate of $650,000 for
the period commencing on the Effective Date. The Base Salary will increase to $700,000 on January 1, 2018. The Board may at
its discretion elect to increase Executive’s Base Salary at any time if they deem an increase is warranted. Subject to Section
5(c)(ii) hereof, the Board may not decrease Executive’s annual Base Salary without his prior written approval. Base Salary
shall be payable in accordance with the ordinary payroll practices of VNR, but in no event shall the Base Salary be paid to Executive
less frequently than monthly. The term “Base Salary” as used in this Agreement shall refer to the Base Salary as it
may be so adjusted from time to time.

 

(b)       Annual
Bonus. Executive shall be eligible to receive an annual bonus (the “Annual Bonus”) in an amount to
be determined by the Board or compensation committee of the Board (“Committee”) based on performance
goals established by the Board or Committee, as applicable; provided, however, that the parties agree that Executive and other
employees shall be subject to, and receive, bonus payments through the end of the 2017 calendar year in accordance with the Company’s
2017 pre-emergence annual cash bonus program. In addition, the parties hereby acknowledge and agree that Executive is entitled
to receive the quarterly accrued bonus amounts set forth on Appendix A hereto within 5 business days of the Effective Date.

 

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(c)       MIP
Grants. Executive shall be eligible to participate in the Company’s management incentive plan (“MIP”)
in accordance with the terms thereof and as determined by the Board.

 

3.       Employee
Benefits.

 

(a)       During
the Employment Period, VNR shall provide Executive with coverage under all employee pension and welfare benefit programs, plans
and practices, which VNR makes available to its senior executives (including, without limitation, participation in health, dental,
group life, disability, retirement and all other plans and fringe benefits to the extent generally provided to such senior executives),
commensurate with his position in the Company, to the extent permitted under the employee benefit plan or program, and in accordance
with the terms of the program and/or plan.

 

(b)       Executive
shall be entitled to vacation time in accordance with the Company’s published vacation policy which currently provides Executive
with twenty five (25) business days paid vacation in each calendar year. Such vacation time shall accrue at a rate of two
(2) vacation days for each calendar month worked; provided, however, that during any given calendar year, Executive shall
be able to take vacation days that will accrue during that calendar year, even if such days have not yet accrued. A maximum of
ten (10) business days of accrued but unused vacation may be carried over from one calendar year to the next.

 

(c)       Executive
is authorized to incur reasonable expenses in carrying out his duties and responsibilities under this Agreement and promoting the
business of the Company, including, without limitation, reasonable expenses for travel, lodgings, entertainment and similar items
related to such duties and responsibilities. VNR will promptly reimburse Executive for all such expenses upon presentation by Executive
of appropriately itemized and approved (consistent with VNR’s policy) accounts of such expenditures, in accordance with the
Company’s expense reimbursement policy; provided, however, that in no event shall the expense reimbursement be made after
the last day of the taxable year following the year in which the expense was incurred by Executive, although in the event that
the reimbursement would constitute taxable income to Executive, such reimbursements will be paid no later than March 15th
of the calendar year following the calendar year in which the expense was incurred. No reimbursement or expenses eligible for reimbursement
in any taxable year shall affect the expenses eligible for reimbursement in any other taxable year, nor may the right to receive
a reimbursement of expenses be subject to liquidation or exchanged for another benefit.

 

4.       Termination
in Connection with a Change of Control.

 

(a)       Definition
of Change of Control. For purposes of this Agreement, a “Change of Control” shall mean the occurrence
of one or more of the following events:

 

(i)       Any
“person” or “group” within the meaning of those terms as used in Sections 13(d) and 14(d)(2)
of the Securities Exchange Act of 1934, as amended, other than an affiliate of VNR, shall become the beneficial owner, by
way of merger, consolidation, recapitalization, reorganization or otherwise, of fifty percent (50%) or more of the combined
voting power of the equity interests in VNR;

 

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(ii)       VNR’s
shareholders approve, in one or a series of transactions, a plan of complete liquidation of VNR; or

 

(iii)       The
sale or other disposition by VNR of all or substantially all of its assets in one or more transactions to any person other than
an affiliate of VNR.

 

Notwithstanding anything
provided herein, the Reorganization and any transactions in direct connection therewith shall not constitute a Change of Control.

 

Notwithstanding the foregoing, with respect
to a payment that is subject to section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
a “Change of Control” shall mean a “change of control event” as defined in the regulations and guidance
issued under section 409A of the Code.

 

(b)       If,
during the twelve (12) months immediately following the occurrence of a Change of Control of VNR (the “Change of Control
Period”), Executive is terminated by the Company without Cause or resigns for Good Reason (as defined below), Executive
will be entitled to receive (i) within ten (10) business days after the Date of Termination, his Accrued Compensation and
Reimbursements (as defined below) and (ii) on the 60th day following the Date of Termination, a lump sum payment of an
amount equaling two (2) times the sum of his Base Salary and the Annual Bonus paid or payable with respect to the calendar
year preceding the year in which the Change of Control occurs (the “Change of Control Payment”). Solely
for purposes of the Change of Control Payment, Executive’s Base Salary shall be valued as in effect at the time of the Change
of Control. Treatment of any awards under the MIP will be as provided under the terms and conditions of the MIP and the applicable
individual award agreement.

 

5.       Termination
of Employment.

 

(a)       Termination
without Cause or Resignation by Executive for Other than Good Reason. Unless otherwise specified in a separate provision of
this Section 5, either Executive or VNR, by action of the Board, may terminate this Agreement, and Executive’s employment
by VNR, for any reason after providing thirty (30) days written notice to the non- terminating party. If Executive terminates
this Agreement pursuant to this provision for a reason other than Good Reason, VNR will pay Executive within ten (10) business
days after the Date of Termination (as defined below) (i) all accrued but unpaid Base Salary, (ii) a prorated amount
of Executive’s Base Salary for accrued but unused vacation days, and (iii) yet unpaid reimbursements for any reasonable
and necessary business expenses incurred by Executive prior to the Date of Termination in connection with his duties hereunder
(such amounts collectively, the “Accrued Compensation and Reimbursements”). Upon termination by VNR of
this Agreement pursuant to this Section 5(a) without Cause (other than during a Change of Control Period, which shall be governed
by Section 4(b)), VNR shall pay or provide to Executive the following: (A) within ten (10) business days after the Date
of Termination, the Accrued Compensation and Reimbursements and (B) on the 60th day following the Date of Termination,
a lump sum payment (the “Severance Payment”) equal to the amount of Executive’s Base Salary (at
the rate in effect hereunder as of the Date of Termination) for thirty (30) months. Treatment of any awards under the MIP will
be as provided under the terms and conditions of the MIP and the applicable individual award agreement. Notwithstanding any other
provision of this Agreement, the non-renewal of Executive’s employment pursuant to the terms of a Non-Renewal Notice under
Section 1(a) of this Agreement shall not constitute a termination of this Agreement entitling Executive to the Severance Payment
under this Section 5(a) or any Change of Control Payment under Section 4(b).

 

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(b)       Termination
for Cause. VNR, by action of the Board may terminate this Agreement at any time for Cause. Upon termination by VNR for Cause,
Executive shall only be entitled to Accrued Compensation and Reimbursements, which amount shall be paid within ten (10) business
days after the Date of Termination. For purposes hereof, “Cause” means any of the following:

 

(i)       Executive’s
commission of theft, embezzlement, any other act of dishonesty relating to his employment with VNR or any willful violation of
any law, rules or regulation applicable to the Company, including, but not limited to, those laws, rules or regulations established
by the Securities and Exchange Commission, or any self- regulatory organization having jurisdiction or authority over Executive
or the Company; or

 

(ii)       Executive’s
conviction of, or Executive’s plea of guilty or nolo contendere to, any felony or of any other crime involving fraud,
dishonesty or moral turpitude; or

 

(iii)       A
determination by the Board that Executive has materially breached this Agreement (other than during any period of Disability, as
defined below) where such breach is not remedied within ten business (10) days after written demand by the Board for substantial
performance is actually received by Executive which specifically identifies the manner in which the Board believes Executive has
so breached; or

 

(iv)       Executive’s
willful failure to perform his reasonable and customary duties as the President and Chief Executive Officer which such failure
is not remedied within ten business (10) days after written demand by the Board for substantial performance is actually received
by Executive which specifically identifies the nature of such failure.

 

For purposes of the definition of Cause,
no act or failure to act, on the part of Executive, shall be considered “willful” unless it is done, or omitted to
be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in, or not opposed
to, the best interests of the Company. Any act, or failure to act, based upon authority given by the Board or based upon the advice
of counsel for VNR shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best
interests of the Company. VNR, by action of the Board, may terminate Executive’s employment for Cause only after: (i) providing
written notice to Executive, which identifies the Cause for Executive’s termination (which notice must be given within ninety
(90) days after the actual discovery of the act(s) or omission(s) constituting such Cause) and (ii) Executive has been
given an opportunity, together with his counsel, to be heard by the Board at a time and location reasonably designated by the Board.

 

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(c)       Termination
with Good Reason. Executive may terminate this Agreement for Good Reason, and thereby resign his employment, after providing
thirty (30) days’ written notice to the Company of the act(s) or omission(s) constituting Good Reason (which notice
must be given within ninety (90) days after the occurrence of such act(s) or omission(s) and describe the act(s) or omission(s)
in reasonable detail) if such act(s) or omission(s) is/are not cured by the Company within thirty (30) days after Executive
provides such written notice. For purposes hereof, “Good Reason” means any of the following reasons that
occurs without Executive’s written consent:

 

(i)       A
material reduction in Executive’s authority, duties, or responsibilities (provided, however, that (x) any changes to the
foregoing resulting from the Reorganization, including changes resulting from VNR ceasing to be a publicly-traded company or (y)
any removal of Executive from membership on the Board that is due to a vote of the shareholders or due to the failure of the Nominating
Committee of the Board to nominate Executive, in each case, shall not be treated as satisfying the requirements of this Section 5(c)(i));
or

 

(ii)       A
material reduction in Executive’s Base Salary, other than a reduction affecting senior management similarly and in no event
more than 10% from the Base Salary in effect on the date hereof; or

 

(iii)       Executive’s
removal from his position as President and Chief Executive Officer of VNR, other than for Cause or by death or Disability, during
the Employment Period, to a position that is not at least equivalent in authority and duties to President and Chief Executive Officer;
or

 

(iv)       Relocation
of Executive’s principal place of business to a location fifty (50) or more miles from its location as of the Effective
Date; or

 

(v)       A
material breach by VNR of this Agreement, which materially and adversely affects Executive; or

 

(vi)       VNR’s
failure to make any material payment to Executive required to be made under the terms of this Agreement; or

 

(vii)       The
Board or Committee (a) fails to make grants of initial awards under the MIP (the “Initial Grants”) within
ninety (90) days following the Effective Date or (b) fails to grant Executive an Initial Grant substantially equivalent in value,
on the award date, to the lesser of (x) Executive’s past equity awards or (y) grants made at median to similarly-situated
executives employed by other companies within the Company’s peer group selected by the Board or a committee thereof based
on the recommendation of an independent compensation consultant to the Board or a committee thereof.

 

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In the event Executive terminates this
Agreement for Good Reason (other than during a Change of Control Period, which shall be governed by Section 4(b)), VNR shall pay
or provide Executive the following: (i) within ten (10) business days after the Date of Termination, his Accrued Compensation
and Reimbursements and (ii) on the 60th day following the Date of Termination, the Severance Payment. Treatment of any
awards under the MIP will be as provided under the terms and conditions of the MIP and the applicable individual award agreement.

 

(d)       Termination
by Disability. VNR, by action of the Board, may terminate this Agreement at any time if Executive shall be deemed in the reasonable
judgment of the Board to have sustained a “Disability.” Executive shall be deemed to have sustained a
Disability if and only if he shall have been unable to substantially perform his duties as an employee of VNR as a result of sickness
or injury, and shall have remained unable to perform any such duties for a period of more than 180 consecutive days in any
twelve (12) month period. Upon termination of this Agreement for Disability, Executive shall only be entitled to (i) Accrued
Compensation and Reimbursements, which amount shall be paid within ten (10) business days after the Date of Termination and
(ii) any other amounts or benefits to which Executive may be entitled under a separate plan, policy or program maintained by the
Company.

 

(e)       Termination
by Death. This Agreement will terminate automatically upon Executive’s death. Upon termination of this Agreement because
of Executive’s death, VNR shall pay or provide Executive’s estate with the following: (i) Accrued Compensation and
Reimbursements, which amount shall be paid within ten (10) business days after the Date of Termination and (ii) any other
amounts or benefits to which Executive may be entitled under a separate plan, policy or program maintained by the Company.

 

(f)       Date
of Termination. As used in this Agreement, “Date of Termination” means (i) if Executive’s
employment is terminated by his death, the date of his death; (ii) if Executive’s employment is terminated as a result
of a Disability or by VNR for Cause or without Cause, then the date specified in a notice delivered to Executive by VNR of such
termination, (iii) if Executive’s employment is terminated by Executive for Good Reason, then the date specified in
the notice of such termination delivered to VNR by Executive, (iv) if Executive’s employment terminates due to the giving
of a Non-Renewal Notice, the last day of the Employment Period, and (v) if Executive’s employment is terminated for
any other reason, the date specified therefore in the notice of such termination.

 

6.       Employment.

 

Upon termination of
this Agreement, Executive’s employment shall also terminate and cease, and Executive shall be deemed to have voluntarily
resigned from all positions and the Board, if Executive is a member of the Board. Executive shall confirm the foregoing resignation(s)
by submitting to the Company written confirmation of Executive’s resignation(s), and the Company’s obligations to pay
the Severance Payment or the Change of Control Payment shall be subject to the Company’s receipt of such written confirmation.

 

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7.       Mitigation.

 

Upon termination of
this Agreement for any reason, amounts to be paid per the express terms of this Agreement shall not be reduced whether or not Executive
obtains other employment.

 

8.       Release.

 

Notwithstanding any
other provision in this Agreement to the contrary, as a condition precedent to receiving any change of control or severance payments
or benefits set forth in Section 4 or 5 of this Agreement (other than the Accrued Compensation and Reimbursements) in connection
with any applicable termination scenario, Executive agrees to execute (and not revoke) a customary severance and release agreement,
including a waiver of all claims, reasonably acceptable to the Company (the “Release”), within the forty-five
(45) day period immediately following the Date of Termination. All revocation rights and timing restrictions shall be set
forth in such Release. If Executive fails to execute and deliver the Release, or revokes the Release, Executive agrees that he
shall not be entitled to receive any severance payments or benefits set forth in Section 4 or 5 of this Agreement (other than
the Accrued Compensation and Reimbursements) in connection with any applicable termination scenario. For purposes of this Agreement,
the Release shall be considered to have been executed by Executive if it is signed by his legal representative in the case of legal
incompetence or on behalf of Executive’s estate in the case of his death.

 

9.       Nondisclosure.

 

(a)       It
is understood that Executive during his tenure with the Company has received and will continue to receive access to some or all
of the Company’s various trade secrets and confidential or proprietary information, including information he has not received
before, consisting of, but not limited to, information relating to (i) business operations and methods, (ii) existing
and proposed investments and investment strategies, (iii) financial performance, (iv) compensation arrangements and amounts
(whether relating to the Company or to any of its employees), (v) contractual relationships, (vi) business partners and
relationships, and (vii) marketing strategies (all of the forgoing, “Confidential Information”).
Confidential Information shall not include: (A) information that Executive may furnish to third parties regarding his obligations
under this Section 9 and under Section 10 or (B) information that (1) is general knowledge of Executive or
information that becomes generally available to the public by means other than Executive’s breach of this Section 9
(for example, not as a result of Executive’s unauthorized release of marketing materials), (2) is in Executive’s
possession, or becomes available to Executive, on a non-confidential basis, from a source other than the Company or (3) Executive
is required by law, regulation, court order or discovery demand to disclose; provided, however, that in the case of clause (3),
Executive gives the Company, to the extent permitted by law, reasonable notice prior to the disclosure of the Confidential Information
and the reasons and circumstances surrounding such disclosure to provide the Company an opportunity to seek a protective order
or other appropriate request for confidential treatment of the applicable Confidential Information.

 

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(b)       Executive
agrees that all Confidential Information, whether prepared by Executive or otherwise coming into his possession, shall remain the
exclusive property of the Company during Executive’s employment with the Company. Executive further agrees that Executive
shall not, except for the benefit of the Company pursuant to the exercise of his duties in accordance with this Agreement or with
the prior written consent of the Company, use or disclose to any third party any of the Confidential Information described herein,
directly or indirectly, either during Executive’s employment with the Company or at any time following the termination of
Executive’s employment with the Company.

 

(c)       Upon
termination of this Agreement, Executive agrees that all Confidential Information and other files, documents, materials, records,
notebooks, customer lists, business proposals, contracts, agreements and other repositories containing information concerning the
Company or the business of the Company (including all copies thereof) in Executive’s possession, custody or control, whether
prepared by Executive or others, shall remain with or be returned to the Company as soon as practicable after the Date of Termination.

 

(d)       Nothing
in this Agreement will preclude, prohibit or restrict Executive from (i) communicating with, any federal, state or local administrative
or regulatory agency or authority, including but not limited to the Securities and Exchange Commission (the “SEC”);
(ii) participating or cooperating in any investigation conducted by any governmental agency or authority; or (iii) filing a charge
of discrimination with the United States Equal Employment Opportunity Commission or any other federal state or local administrative
agency or regulatory authority. Nothing in this Agreement, or any other agreement between the parties, prohibits or is intended
in any manner to prohibit, Executive from (A) reporting a possible violation of federal or other applicable law or regulation to
any governmental agency or entity, including but not limited to the Department of Justice, the SEC, the U.S. Congress, and any
governmental agency Inspector General, or (B) making other disclosures that are protected under whistleblower provisions of federal
law or regulation. This Agreement does not limit Executive’s right to receive an award (including, without limitation, a
monetary reward) for information provided to the SEC. Executive does not need the prior authorization of anyone at the Company
to make any such reports or disclosures, and Executive is not required to notify the Company that Executive has made such reports
or disclosures. Nothing in this Agreement or any other agreement or policy of the Company is intended to interfere with or restrain
the immunity provided under 18 U.S.C. §1833(b). Executive cannot be held criminally or civilly liable under any federal or
state trade secret law for the disclosure of a trade secret that is made (i) (A) in confidence to federal, state or local government
officials, directly or indirectly, or to an attorney, and (B) for the purpose of reporting or investigating a suspected violation
of law; (ii) in a complaint or other document filed in a lawsuit or other proceeding, if filed under seal; or (iii) in connection
with a lawsuit alleging retaliation for reporting a suspected violation of law, if filed under seal and does not disclose the trade
secret, except pursuant to a court order. The foregoing provisions regarding protected disclosures are intended to comply with
all applicable laws. If any laws are adopted, amended or repealed after the execution of this Agreement, this Section 9(d) shall
be deemed to be amended to reflect the same.

 

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10.       Non-Competition
and Non-solicitation.

 

(a)       As
part of the consideration for the compensation and benefits to be paid to Executive hereunder, to protect Confidential Information
of the Company and its customers and clients that have been and will be entrusted to Executive, the business goodwill of the Company
and its subsidiaries that will be developed in and through Executive and the business opportunities that will be disclosed or entrusted
to Executive by the Company and its subsidiaries, and as an additional incentive for the Company to enter into this Agreement,
from the date hereof through the first anniversary of the Date of Termination (the “Restricted Period”),
Executive will not (other than for the benefit of the Company pursuant to this Agreement), directly or indirectly:

 

(i)       engage
in, or carry on or assist, individually or as a principal, owner, officer, director, employee, shareholder, consultant, contractor,
partner, member, joint venturer, agent, equity owner or in any other capacity whatsoever (in any such capacity, an “Investor”),
any (A) any business directly competitive with the business in which the Company is engaged from time to time (“Competing
Business”) or (B) Business Enterprise (as defined below) that is otherwise directly competitive with the Company
within the states in which the Company conducts business;

 

(ii)       perform
for any corporation, partnership, limited liability company, sole proprietorship, joint venture or other business association or
entity (a “Business Enterprise”) engaged in any Competing Business any duty Executive has performed for the Company
that involved Executive’s access to, or knowledge or application of, Confidential Information;

 

(iii)       
induce or attempt to induce any customer, supplier, licensee or other business relation of the Company to cease doing business
with the Company or in any way interfere with the relationship between any such customer, supplier, licensee or business relation
and the Company;

 

(iv)       induce
or attempt to induce any customer, supplier, licensee or other business relation of the Company with whom Executive had direct
business contact in dealings during the Employment Period in the course of his employment with the Company to cease doing business
with the Company or in any way interfere with the relationship between any such customer, supplier, licensee or business relation
and the Company; or

 

(v)       solicit
with the purpose of hiring or hire any person who is or, within 180 days after such person ceased to be an employee of
the Company, was an employee of the Company.

 

(b)       Notwithstanding
the duration of the restrictions set forth in Section 10(a) above and subject to Section 10(e) below, the restrictions set forth
under Sections 10(a)(i) and (ii) shall expire after (x) 180 days following the Date of Termination, if Executive terminates this
Agreement under Sections 5(c) or 4(b) hereof or the Company terminates Executive’s employment without Cause under Sections
5(a) or 4(b) or (y) sixty (60) days following the Date of Termination, if Executive elects to terminate this Agreement for any
other reason.

 

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(c)       Notwithstanding
the foregoing restrictions of this Section 10, nothing in this Section 10 shall prohibit (i) any investment by Executive,
directly or indirectly, in securities which are issued by a Business Enterprise involved in or conducting a Competing Business,
provided that Executive, directly or indirectly, does not own more than five percent (5%) of the outstanding equity or voting
securities of such Business Enterprise or (ii) Executive, directly or indirectly, from owning any interest in any Business
Enterprise which conducts a Competing Business if such interest in such Business Enterprise is owned as of the date of this Agreement
and Executive does not have the right, in the case of (i) or (ii), through the ownership of a voting interest or otherwise,
to direct the activities of or associated with the business of such Business Enterprise.

 

(d)       Executive
acknowledges that each of the covenants of Section 10(a) are in addition to, and shall not be construed as a limitation upon,
any other covenant provided in Section 10(a). Executive agrees that the geographic boundaries, scope of prohibited activities,
and time duration of each of the covenants set forth in Section 10(a) are reasonable in nature and are no broader than are
necessary to maintain the confidentiality and the goodwill of the Company’s proprietary and Confidential Information, plans
and services and to protect the other legitimate business interests of the Company, including without limitation the goodwill developed
by Executive with Company’s customers, suppliers, licensees and business relations.

 

(e)       If,
during any portion of the Restricted Period, Executive is not in compliance with the terms of Section 10(a), the Company shall
be entitled to, among other remedies, compliance by Executive with the terms of Section 10(a) for an additional period of
time (i.e., in addition to the Restricted Period) that shall equal the period(s) over which such noncompliance occurred.

 

(f)       The
parties hereto intend that the covenants contained in Section 10(a) be construed as a series of separate covenants, one for
each defined province in each geographic area in which Executive on behalf of the Company conducts business. Except for geographic
coverage, each such separate covenant shall be deemed identical in terms to the applicable covenant contained in Section 10(a).
Furthermore, each of the covenants in Section 9(a) shall be deemed a separate and independent covenant, each being enforceable
irrespective of the enforceability (with or without reformation) of the other covenants contained in Section 10(a).

 

11.       Notices.

 

All notices and other
communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered
personally, mailed by certified mail (return receipt requested) or sent by overnight delivery service to the parties at the following
addresses or at such other addresses as shall be specified by the parties by like notice, in order of preference of the recipient:

 

	To VNR or the Company:	To Executive:
	To the Secretary of VNR	At the most recent address on file

 

    	11	 	 

     

    

 

Notice so given shall, in the case of mail,
be deemed to be given and received on the fifth calendar day after posting, and in the case overnight delivery service, on the
date of actual delivery.

 

12.       Severability
and Reformation.

 

If any one or more
of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions shall remain in full force
and effect, and the invalid, void or unenforceable provisions shall be deemed severable. Moreover, if any one or more of the provisions
contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or
subject, it shall be reformed by limiting and reducing it to the minimum extent necessary, so as to be enforceable to the extent
compatible with the applicable law as it shall then appear.

 

13.       Assignment.

 

This Agreement shall
be binding upon and inure to the benefit of the heirs and legal representatives of Executive and the permitted assigns and successors
of VNR, but neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise subject to hypothecation
by Executive without the express written consent of VNR (except in the case of death by will or by operation of the laws of intestate
succession) or by VNR, except that VNR may assign this Agreement to any successor (whether by merger, purchase or otherwise) to
all or substantially all of the stock assets or businesses of VNR, if such successor expressly agrees to assume the obligations
of VNR hereunder.

 

14.       Amendment.

 

This Agreement may
be amended only by writing signed by both Executive and by a duly authorized representative of VNR (other than Executive).

 

15.       Assistance
in Litigation.

 

Executive shall reasonably
cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the
future against or on behalf of the Company that relate to events or occurrences that transpired while Executive was employed by
the Company. Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being
available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient
times. Executive also shall cooperate fully with the Company in connection with any investigation or review by any Federal, state,
or local regulatory authority as any such investigation or review relates, to events or occurrences that transpired while Executive
was employed by the Company. The Company will pay Executive an agreed upon reasonably hourly rate for Executive’s cooperation
pursuant to this Section 15.

 

    	12	 	 

     

    

 

16.       Beneficiaries;
References.

 

Executive shall be
entitled to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any
compensation or benefit payable hereunder following Executive’s death, and may change such election, in either case by giving
the Company written notice thereof. In the event of Executive’s death or a judicial determination of his incompetence, reference
in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative.
Any reference to the masculine gender in this Agreement shall include, where appropriate, the feminine.

 

17.       Use
of Name, Likeness and Biography.

 

The Company shall have
the right (but not the obligation) to use, publish and broadcast, and to authorize others to do so, the name, approved likeness
and approved biographical material of Executive to advertise, publicize and promote the business of the Company and its affiliates,
but not for the purposes of direct endorsement without Executive’s consent. This right shall terminate upon the termination
of this Agreement. An “approved likeness” and “approved biographical material” shall be, respectively,
any photograph or other depiction of Executive, or any biographical information or life story concerning the professional career
of Executive.

 

18.       Governing
Law.

 

THIS AGREEMENT SHALL
BE CONSTRUED, INTERPRETED AND GOVERNED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REFERENCE TO RULES RELATING
TO CONFLICTS OF LAW.

 

19.       Entire
Agreement.

 

This Agreement contains
the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes in all respects any
prior or other agreement (including the Prior Agreement) or understanding, written or oral, between the Company or any affiliate
of the Company and Executive with respect to such subject matter. For the avoidance of doubt, Executive acknowledges and agrees
that the Company has satisfied all obligations that it has owed, and that it ever could owe, under the Prior Agreement and that
Executive has no further rights thereunder.

 

20.       Withholding.

 

The Company shall be
entitled to withhold from payment to Executive of any amount of withholding required by law.

 

21.       Counterparts.

 

This Agreement may
be executed in two or more counterparts, each of which will be deemed an original.

 

    	13	 	 

     

    

 

22.       Remedies.

 

The parties recognize
and affirm that in the event of a breach of Sections 9 or 10 of this Agreement, money damages would be inadequate and
VNR would not have an adequate remedy at law. Accordingly, the parties agree that in the event of a breach or a threatened breach
of Sections 9 or 10, VNR may, in addition and supplementary to other rights and remedies existing in its favor, apply
to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to
enforce or prevent any violations of the provisions hereof (without posting a bond or other security). In addition, Executive agrees
that in the event a court of competent jurisdiction or an arbitrator finds that Executive violated Section 9 or 10, the
time periods set forth in those Sections shall be tolled until such breach or violation has been cured. Executive further agrees
that VNR shall have the right to offset the amount of any damages resulting from a breach by Executive of Section 9 or 10
against any payments due Executive under this Agreement. The parties agree that if one of the parties is found to have breached
this Agreement by a court of competent jurisdiction or arbitrator, the breaching party will be required to pay the non-breaching
party’s attorneys’ fees reasonably incurred in prosecuting the non-breaching party’s claim of breach.

 

23.       Non-Waiver.

 

The failure by either
party to insist upon the performance of any one or more terms, covenants or conditions of this Agreement shall not be construed
as a waiver or relinquishment of any right granted hereunder or of any future performance of any such term, covenant or condition,
and the obligation of either party with respect hereto shall continue in full force and effect, unless such waiver shall be in
writing signed by VNR (other than Executive) and Executive.

 

24.       Announcement.

 

The Company shall have
the right to make public announcements concerning the execution of this Agreement and the terms contained herein, at the Company’s
discretion.

 

25.       Construction.

 

The headings and captions
of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement.
The language in all parts of this Agreement shall be in all cases construed in accordance to its fair meaning and not strictly
for or against the Company or Executive.

 

26.       Right
to Insure.

 

The Company shall have
the right to secure, in its own name or otherwise, and at its own expense, life, health, accident or other insurance covering Executive,
and Executive shall have no right, title or interest in and to such insurance. Executive shall assist the Company in procuring
such insurance by submitting to examinations and by signing such applications and other instruments as may be required by the insurance
carriers to which application is made for any such insurance.

 

    	14	 	 

     

    

 

27.       No
Inconsistent Obligations.

 

Executive represents
and warrants that to his knowledge he has no obligations, legal, in contract, or otherwise, inconsistent with the terms of this
Agreement or with his undertaking employment with the Company to perform the duties described herein. Executive will not disclose
to the Company, or use, or induce the Company to use, any confidential, proprietary, or trade secret information of others. Executive
represents and warrants that to his knowledge he has returned all property and confidential information belonging to all prior
employers, if he is obligated to do so.

 

28.       Binding
Agreement.

 

This Agreement shall
inure to the benefit of and be binding upon Executive, his heirs and personal representatives, and the Company, its successors
and assigns.

 

29.       Voluntary
Agreement.

 

Each party to this
Agreement has read and fully understands the terms and provisions hereof, has had an opportunity to review this Agreement with
legal counsel, has executed this Agreement based upon such party’s own judgment and advice of counsel (if any), and knowingly,
voluntarily, and without duress, agrees to all of the terms set forth in this Agreement. The parties have participated jointly
in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement
will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring
any party because of authorship of any provision of this Agreement. Except as expressly set forth in this Agreement, neither the
parties nor their affiliates, advisors and/or their attorneys have made any representation or warranty, express or implied, at
law or in equity with respect of the subject matter contained herein. Without limiting the generality of the previous sentence,
the Companies, their affiliates, advisors, and/or attorneys have made no representation or warranty to Executive concerning the
state or Federal tax consequences to Executive regarding the transactions contemplated by this Agreement.

 

30.       Section 409A
of the Code.

 

This Agreement is intended
to comply with Section 409A of the Code, and the Treasury regulations and other interpretive guidance issued thereunder (collectively,
“Section 409A”), or to be treated as exempt therefrom, and shall be construed and administered in
accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation
pay due to an involuntary separation from service, as a short-term deferral, or as any other compensation that is otherwise exempt
from Section 409A shall be excluded from Section 409A to the maximum extent possible. Any payments to be made under this
Agreement upon a termination of Executive’s employment that are subject to Section 409A shall only be made if such termination
of employment constitutes a “separation from service” under Section 409A. Notwithstanding any provision in this
Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under
Section 409A if Executive’s receipt of such payment or benefit is not delayed until the earlier of (i) the date
of Executive’s death or (ii) the date that is six months after the Date of Termination of Executive’s employment
hereunder (such date, the “Section 409A Payment Date”), then such payment or benefit shall not be
provided to Executive (or Executive’s estate, if applicable) until the Section 409A Payment Date. Each payment under
this Agreement is intended to be a “separate payment” and not one of a series of payments for purposes of Section 409A.
Notwithstanding the foregoing, the Company does not guarantee any particular tax effect, and Executive shall be solely responsible
and liable for the satisfaction of all taxes, penalties and interest that may be imposed on or for the account of Executive in
connection with the Agreement (including any taxes, penalties and interest under Section 409A), and neither the Company, nor any
of its affiliates, shall have any obligation to indemnify or otherwise hold Executive (or any beneficiary) harmless from any or
all of such taxes, penalties or interest.

 

    	15	 	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Employment Agreement on the dates below

 

	 	EXECUTIVE
	 	 	 
	 	/s/ Scott W. Smith
	 	Scott W. Smith
	 	 	 
	 	Date:	August 1, 2017
	 	 	 
	 	VANGUARD NATURAL RESOURCES, INC.
	 	 	 
	 	By:	/s/ Richard A. Robert
	 	 	 
	 	Its:	Executive Vice President and Chief Financial Officer
	 	 	 
	 	Date:	August 1, 2017

 

 

    	16	 	 

     

    

 

Appendix A

Quarterly Bonus Amounts

 

Executive will receive quarterly bonuses accrued under the Executive’s
Amended and Restated Employment Agreement with Vanguard Natural Resources, LLC, which was in effect prior to the Effective Date.
The schedule below provides for the receipt of the following accrued payments within five days of the Effective Date: (i) quarterly
bonuses with respect to the fiscal quarters ended (A) December 31, 2016; (B) March 31, 2017; and (C) June 30, 2017, all of which
have accrued and are payable now; and (ii) a bonus with respect to the period from July 1, 2017 to the Effective Date.

 

	Accrual Period	 	Quarter ended

December 31, 2016	 	 	Quarter ended

March 31, 2017	 	 	Quarter ended

June 30, 2017	 	 	July 1, 2017 -

Effective Date1	 
	Bonus	 	$	159,375	 	 	$	192,969	 	 	$	192,969	 	 	$	64,323	 

 

Executive shall receive accrued bonus payments
through the end of the year ended December 31, 2017 in accordance with the Company’s pre-emergence annual cash bonus program.
Executive will also receive future additional payments as established by the Board of Directors of Vanguard Natural Resources,
Inc.

 

 

 

 

 

1
One-third of the estimate quarterly bonus payment for the quarter ended September 30, 2017.

 

 

    	17Exhibit 10.10

 

 

SECOND AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

RICHARD A. ROBERT

 

This SECOND AMENDED
AND RESTATED EMPLOYMENT AGREEMENT, effective as of August 1, 2017 (the “Effective Date”), is by and
between Vanguard Natural Resources, Inc. (“VNR”, together with its subsidiaries, the “Company”)
and Richard A. Robert (“Executive”).

 

WHEREAS, VNR
Holdings, LLC (“Holdings”), Vanguard Natural Resources, LLC (“Parent”) and
Executive previously entered into that certain Amended and Restated Employment Agreement dated January 1, 2016 (the “Prior
Agreement”);

 

WHEREAS, Holdings
and Parent and certain of their affiliates filed for relief under chapter 11 of title 11 of the United States Code in the Bankruptcy
Court for the Southern District of Texas, Houston Division and were proponents of the Amended Joint Plan of Reorganization of Vanguard
Natural Resources, LLC, et. al., Pursuant to Chapter 11 of the Bankruptcy Code (as amended, modified or supplemented, the “Reorganization”);

 

WHEREAS, the
parties hereby agree that the Prior Agreement is terminated as of the Effective Date and is replaced in its entirety with this
Second Amended and Restated Employment Agreement (this “Agreement”);

 

WHEREAS, VNR
desires to continue to employ Executive, and Executive desires to continue to be employed by VNR; and

 

WHEREAS, the
parties desire to set forth in writing the terms and conditions of their understandings and agreements in this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants and obligations contained herein, VNR hereby agrees to employ Executive and Executive
hereby accepts such employment upon the terms and conditions set forth in this Agreement:

 

1.       Employment
Period.

 

(a)       Subject
to Section 5, VNR hereby agrees to employ Executive, and Executive hereby agrees to be employed by VNR, in accordance with
the terms and provisions of this Agreement, for the period commencing as of the Effective Date and ending on January 1, 2019
(the “Employment Period”); provided, however, that the Employment Period shall automatically be renewed
and extended for an additional period of twelve (12) months commencing on January 1, 2019 and expiring on January 1,
2020, and on each successive January 1 thereafter, unless at least ninety (90) days prior to the ensuing expiration date
(but no more than twelve (12) months prior to such expiration date), VNR or Executive shall have given ninety (90) days
written notice to the other that it or he, as applicable, does not wish to extend this Agreement (a “Non-Renewal
Notice”). The term “Employment Period” as utilized in this Agreement, shall refer to the
Employment Period as so automatically extended.

 

(b)       During
the term of Executive’s employment with VNR, Executive shall serve as the Executive Vice President and Chief Financial Officer
of VNR and in so doing, shall report to the Board of Managers or Directors, as applicable, of VNR (the “Board”).
In addition, Executive shall serve as a member of the Board of VNR unless removed by a vote of the shareholders or unless the Nominating
Committee of the Board fails to nominate Executive. Executive shall have supervision and control over, and responsibility for,
such management and operational functions of the Company currently assigned to such positions, and shall have such other powers
and duties (including holding officer positions with VNR and one or more subsidiaries of VNR) as may from time to time be prescribed
by the Board, so long as such powers and duties are reasonable and customary for the Executive Vice President and Chief Financial
Officer of an enterprise comparable to the Company.

 

 

     

     

    

 

(c)       During
the term of Executive’s employment with VNR, and excluding any periods of vacation and sick leave to which Executive is entitled,
Executive agrees to devote substantially all of his business time to the business and affairs of VNR and, to the extent necessary
to discharge the responsibilities assigned to Executive hereunder or by the Board hereafter, to use Executive’s reasonable
best efforts to perform faithfully, effectively and efficiently such responsibilities. During the term of Executive’s employment
with VNR, it shall not be a violation of this Agreement for Executive to (i) serve on corporate, civic or charitable boards
or committees, provided that service on any corporate board or committee shall be subject to the prior approval of the Board, which
shall not be unreasonably withheld (ii) deliver lectures or fulfill speaking engagements and (iii) manage personal investments,
so long as such activities do not materially interfere with the performance of Executive’s responsibilities as an employee
of the Company in accordance with this Agreement.

 

(d)       The
parties expressly acknowledge that any performance of Executive’s responsibilities hereunder shall necessitate, and the Company
shall provide, access to or the disclosure of Confidential Information (as defined in Section 9(a) below) to Executive and
that Executive’s responsibilities shall include the development of the Company’s goodwill through Executive’s
contacts with the Company’s customers and suppliers.

 

2.       Compensation.

 

(a)       Base
Salary. VNR shall pay Executive an annual base salary (“Base Salary”) at the rate of $490,000 for
the period commencing on the Effective Date. The Base Salary will increase to $510,000 on January 1, 2018. The Board may at
its discretion elect to increase Executive’s Base Salary at any time if they deem an increase is warranted. Subject to Section
5(c)(ii) hereof, the Board may not decrease Executive’s annual Base Salary without his prior written approval. Base Salary
shall be payable in accordance with the ordinary payroll practices of VNR, but in no event shall the Base Salary be paid to Executive
less frequently than monthly. The term “Base Salary” as used in this Agreement shall refer to the Base Salary as it
may be so adjusted from time to time.

 

(b)       Annual
Bonus. Executive shall be eligible to receive an annual bonus (the “Annual Bonus”) in an amount to
be determined by the Board or compensation committee of the Board (“Committee”) based on performance
goals established by the Board or Committee, as applicable; provided, however, that the parties agree that Executive and other
employees shall be subject to, and receive, bonus payments through the end of the 2017 calendar year in accordance with the Company’s
2017 pre-emergence annual cash bonus program. In addition, the parties hereby acknowledge and agree that Executive is entitled
to receive the quarterly accrued bonus amounts set forth on Appendix A hereto within 5 business days of the Effective Date.

 

     

     

    

 

(c)       MIP
Grants. Executive shall be eligible to participate in the Company’s management incentive plan (“MIP”)
in accordance with the terms thereof and as determined by the Board.

 

3.       Employee
Benefits.

 

(a)       During
the Employment Period, VNR shall provide Executive with coverage under all employee pension and welfare benefit programs, plans
and practices, which VNR makes available to its senior executives (including, without limitation, participation in health, dental,
group life, disability, retirement and all other plans and fringe benefits to the extent generally provided to such senior executives),
commensurate with his position in the Company, to the extent permitted under the employee benefit plan or program, and in accordance
with the terms of the program and/or plan.

 

(b)       Executive
shall be entitled to vacation time in accordance with the Company’s published vacation policy which currently provides Executive
with twenty five (25) business days paid vacation in each calendar year. Such vacation time shall accrue at a rate of two
(2) vacation days for each calendar month worked; provided, however, that during any given calendar year, Executive shall
be able to take vacation days that will accrue during that calendar year, even if such days have not yet accrued. A maximum of
ten (10) business days of accrued but unused vacation may be carried over from one calendar year to the next.

 

(c)       Executive
is authorized to incur reasonable expenses in carrying out his duties and responsibilities under this Agreement and promoting the
business of the Company, including, without limitation, reasonable expenses for travel, lodgings, entertainment and similar items
related to such duties and responsibilities. VNR will promptly reimburse Executive for all such expenses upon presentation by Executive
of appropriately itemized and approved (consistent with VNR’s policy) accounts of such expenditures, in accordance with the
Company’s expense reimbursement policy; provided, however, that in no event shall the expense reimbursement be made after
the last day of the taxable year following the year in which the expense was incurred by Executive, although in the event that
the reimbursement would constitute taxable income to Executive, such reimbursements will be paid no later than March 15th
of the calendar year following the calendar year in which the expense was incurred. No reimbursement or expenses eligible for reimbursement
in any taxable year shall affect the expenses eligible for reimbursement in any other taxable year, nor may the right to receive
a reimbursement of expenses be subject to liquidation or exchanged for another benefit.

 

4.       Termination
in Connection with a Change of Control.

 

(a)       Definition
of Change of Control. For purposes of this Agreement, a “Change of Control” shall mean the occurrence
of one or more of the following events:

 

(i)       Any
“person” or “group” within the meaning of those terms as used in Sections 13(d) and 14(d)(2)
of the Securities Exchange Act of 1934, as amended, other than an affiliate of VNR, shall become the beneficial owner, by
way of merger, consolidation, recapitalization, reorganization or otherwise, of fifty percent (50%) or more of the combined
voting power of the equity interests in VNR;

 

     

     

    

 

(ii)       VNR’s
shareholders approve, in one or a series of transactions, a plan of complete liquidation of VNR; or

 

(iii)       The
sale or other disposition by VNR of all or substantially all of its assets in one or more transactions to any person other than
an affiliate of VNR.

 

Notwithstanding anything
provided herein, the Reorganization and any transactions in direct connection therewith shall not constitute a Change of Control.

 

Notwithstanding the foregoing, with respect
to a payment that is subject to section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
a “Change of Control” shall mean a “change of control event” as defined in the regulations and guidance
issued under section 409A of the Code.

 

(b)       If,
during the twelve (12) months immediately following the occurrence of a Change of Control of VNR (the “Change of Control
Period”), Executive is terminated by the Company without Cause or resigns for Good Reason (as defined below), Executive
will be entitled to receive (i) within ten (10) business days after the Date of Termination (as defined below), his Accrued
Compensation and Reimbursements (as defined below) and (ii) on the 60th day following the Date of Termination, a lump
sum payment of an amount equaling two (2) times the sum of his Base Salary and the Annual Bonus paid or payable with respect
to the calendar year preceding the year in which the Change of Control occurs (the “Change of Control Payment”).
Solely for purposes of the Change of Control Payment, Executive’s Base Salary shall be valued as in effect at the time of
the Change of Control. Treatment of any awards under the MIP will be as provided under the terms and conditions of the MIP and
the applicable individual award agreement.

 

5.       Termination
of Employment.

 

(a)       Termination
without Cause or Resignation by Executive for Other than Good Reason. Unless otherwise specified in a separate provision of
this Section 5, either Executive or VNR, by action of the Board, may terminate this Agreement, and Executive’s employment
by VNR, for any reason after providing thirty (30) days written notice to the non- terminating party. If Executive terminates
this Agreement pursuant to this provision for a reason other than Good Reason, VNR will pay Executive within ten (10) business
days after the Date of Termination (as defined below) (i) all accrued but unpaid Base Salary, (ii) a prorated amount
of Executive’s Base Salary for accrued but unused vacation days, and (iii) yet unpaid reimbursements for any reasonable
and necessary business expenses incurred by Executive prior to the Date of Termination in connection with his duties hereunder
(such amounts collectively, the “Accrued Compensation and Reimbursements”). Upon termination by VNR of
this Agreement pursuant to this Section 5(a) without Cause (other than during a Change of Control Period, which shall be governed
by Section 4(b)), VNR shall pay or provide to Executive the following: (A) within ten (10) business days after the Date
of Termination, the Accrued Compensation and Reimbursements and (B) on the 60th day following the Date of Termination,
a lump sum payment (the “Severance Payment”) equal to the amount of Executive’s Base Salary (at
the rate in effect hereunder as of the Date of Termination) for thirty (30) months. Treatment of any awards under the MIP will
be as provided under the terms and conditions of the MIP and the applicable individual award agreement. Notwithstanding any other
provision of this Agreement, the non-renewal of Executive’s employment pursuant to the terms of a Non-Renewal Notice under
Section 1(a) of this Agreement shall not constitute a termination of this Agreement entitling Executive to the Severance Payment
under this Section 5(a) or any Change of Control Payment under Section 4(b).

 

     

     

    

 

(b)       Termination
for Cause. VNR, by action of the Board may terminate this Agreement at any time for Cause. Upon termination by VNR for Cause,
Executive shall only be entitled to Accrued Compensation and Reimbursements, which amount shall be paid within ten (10) business
days after the Date of Termination. For purposes hereof, “Cause” means any of the following:

 

(i)       Executive’s
commission of theft, embezzlement, any other act of dishonesty relating to his employment with VNR or any willful violation of
any law, rules or regulation applicable to the Company, including, but not limited to, those laws, rules or regulations established
by the Securities and Exchange Commission, or any self- regulatory organization having jurisdiction or authority over Executive
or the Company; or

 

(ii)       Executive’s
conviction of, or Executive’s plea of guilty or nolo contendere to, any felony or of any other crime involving fraud,
dishonesty or moral turpitude; or

 

(iii)       A
determination by the Board that Executive has materially breached this Agreement (other than during any period of Disability, as
defined below) where such breach is not remedied within ten business (10) days after written demand by the Board for substantial
performance is actually received by Executive which specifically identifies the manner in which the Board believes Executive has
so breached; or

 

(iv)       Executive’s
willful failure to perform his reasonable and customary duties as the Executive Vice President and Chief Financial Officer of VNR,
which such failure is not remedied within ten business (10) days after written demand by the Board for substantial performance
is actually received by Executive which specifically identifies the nature of such failure.

 

For purposes of the definition of Cause,
no act or failure to act, on the part of Executive, shall be considered “willful” unless it is done, or omitted to
be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in, or not opposed
to, the best interests of the Company. Any act, or failure to act, based upon authority given by the Board or based upon the advice
of counsel for VNR shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best
interests of the Company. VNR, by action of the Board, may terminate Executive’s employment for Cause only after: (i) providing
written notice to Executive, which identifies the Cause for Executive’s termination (which notice must be given within ninety
(90) days after the actual discovery of the act(s) or omission(s) constituting such Cause) and (ii) Executive has been
given an opportunity, together with his counsel, to be heard by the Board at a time and location reasonably designated by the Board.

 

     

     

    

 

(c)       Termination
with Good Reason. Executive may terminate this Agreement for Good Reason, and thereby resign his employment, after providing
thirty (30) days’ written notice to the Company of the act(s) or omission(s) constituting Good Reason (which notice
must be given within ninety (90) days after the occurrence of such act(s) or omission(s) and describe the act(s) or omission(s)
in reasonable detail) if such act(s) or omission(s) is/are not cured by the Company within thirty (30) days after Executive
provides such written notice. For purposes hereof, “Good Reason” means any of the following reasons that
occurs without Executive’s written consent:

 

(i)       A
material reduction in Executive’s authority, duties, or responsibilities (provided, however, that (x) any changes to the
foregoing resulting from the Reorganization, including changes resulting from VNR ceasing to be a publicly-traded company or (y)
any removal of Executive from membership on the Board that is due to a vote of the shareholders or due to the failure of the Nominating
Committee of the Board to nominate Executive, in each case, shall not be treated as satisfying the requirements of this Section 5(c)(i));
or

 

(ii)       A
material reduction in Executive’s Base Salary, other than a reduction affecting senior management similarly and in no event
more than 10% from the Base Salary in effect on the date hereof; or

 

(iii)       Executive’s
removal from his position as Executive Vice President, Chief Financial Officer of VNR, other than for Cause or by death or Disability,
during the Employment Period, to a position that is not at least equivalent in authority and duties to Executive Vice President
and Chief Financial Officer; or

 

(iv)       Relocation
of Executive’s principal place of business to a location fifty (50) or more miles from its location as of the Effective
Date; or

 

(v)       A
material breach by VNR of this Agreement, which materially and adversely affects Executive; or

 

(vi)       VNR’s
failure to make any material payment to Executive required to be made under the terms of this Agreement; or

 

(vii)       The
Board or Committee (a) fails to make grants of initial awards under the MIP (the “Initial Grants”) within
ninety (90) days following the Effective Date or (b) fails to grant Executive an Initial Grant substantially equivalent in value,
on the award date, to the lesser of (x) Executive’s past equity awards or (y) grants made at median to similarly-situated
executives employed by other companies within the Company’s peer group selected by the Board or a committee thereof based
on the recommendation of an independent compensation consultant to the Board or a committee thereof.

 

     

     

    

 

In the event Executive terminates this
Agreement for Good Reason (other than during a Change of Control Period, which shall be governed by Section 4(b)), VNR shall pay
or provide Executive the following: (i) within ten (10) business days after the Date of Termination, his Accrued Compensation
and Reimbursements and (ii) on the 60th day following the Date of Termination, the Severance Payment. Treatment of any
awards under the MIP will be as provided under the terms and conditions of the MIP and the applicable individual award agreement.

 

(d)       Termination
by Disability. VNR, by action of the Board, may terminate this Agreement at any time if Executive shall be deemed in the reasonable
judgment of the Board to have sustained a “Disability.” Executive shall be deemed to have sustained a
Disability if and only if he shall have been unable to substantially perform his duties as an employee of VNR as a result of sickness
or injury, and shall have remained unable to perform any such duties for a period of more than 180 consecutive days in any
twelve (12) month period. Upon termination of this Agreement for Disability, Executive shall only be entitled to (i) Accrued
Compensation and Reimbursements, which amount shall be paid within ten (10) business days after the Date of Termination and
(ii) any other amounts or benefits to which Executive may be entitled under a separate plan, policy or program maintained by the
Company.

 

(e)       Termination
by Death. This Agreement will terminate automatically upon Executive’s death. Upon termination of this Agreement because
of Executive’s death, VNR shall pay or provide Executive’s estate with the following: (i) Accrued Compensation and
Reimbursements, which amount shall be paid within ten (10) business days after the Date of Termination and (ii) any other
amounts or benefits to which Executive may be entitled under a separate plan, policy or program maintained by the Company.

 

(f)       Date
of Termination. As used in this Agreement, “Date of Termination” means (i) if Executive’s
employment is terminated by his death, the date of his death; (ii) if Executive’s employment is terminated as a result
of a Disability or by VNR for Cause or without Cause, then the date specified in a notice delivered to Executive by VNR of such
termination, (iii) if Executive’s employment is terminated by Executive for Good Reason, then the date specified in
the notice of such termination delivered to VNR by Executive, (iv) if Executive’s employment terminates due to the giving
of a Non-Renewal Notice, the last day of the Employment Period, and (v) if Executive’s employment is terminated for
any other reason, the date specified therefore in the notice of such termination.

 

6.       Employment.

 

Upon termination of
this Agreement, Executive’s employment shall also terminate and cease, and Executive shall be deemed to have voluntarily
resigned from all positions and the Board, if Executive is a member of the Board. Executive shall confirm the foregoing resignation(s)
by submitting to the Company written confirmation of Executive’s resignation(s), and the Company’s obligations to pay
the Severance Payment or the Change of Control Payment shall be subject to the Company’s receipt of such written confirmation.

 

     

     

    

 

7.       Mitigation.

 

Upon termination of
this Agreement for any reason, amounts to be paid per the express terms of this Agreement shall not be reduced whether or not Executive
obtains other employment.

 

8.       Release.

 

Notwithstanding any
other provision in this Agreement to the contrary, as a condition precedent to receiving any change of control or severance payments
or benefits set forth in Section 4 or 5 of this Agreement (other than the Accrued Compensation and Reimbursements) in connection
with any applicable termination scenario, Executive agrees to execute (and not revoke) a customary severance and release agreement,
including a waiver of all claims, reasonably acceptable to the Company (the “Release”), within the forty-five
(45) day period immediately following the Date of Termination. All revocation rights and timing restrictions shall be set
forth in such Release. If Executive fails to execute and deliver the Release, or revokes the Release, Executive agrees that he
shall not be entitled to receive any severance payments or benefits set forth in Section 4 or 5 of this Agreement (other than
the Accrued Compensation and Reimbursements) in connection with any applicable termination scenario. For purposes of this Agreement,
the Release shall be considered to have been executed by Executive if it is signed by his legal representative in the case of legal
incompetence or on behalf of Executive’s estate in the case of his death.

 

9.       Nondisclosure.

 

(a)       It
is understood that Executive during his tenure with the Company has received and will continue to receive access to some or all
of the Company’s various trade secrets and confidential or proprietary information, including information he has not received
before, consisting of, but not limited to, information relating to (i) business operations and methods, (ii) existing
and proposed investments and investment strategies, (iii) financial performance, (iv) compensation arrangements and amounts
(whether relating to the Company or to any of its employees), (v) contractual relationships, (vi) business partners and
relationships, and (vii) marketing strategies (all of the forgoing, “Confidential Information”).
Confidential Information shall not include: (A) information that Executive may furnish to third parties regarding his obligations
under this Section 9 and under Section 10 or (B) information that (1) is general knowledge of Executive or
information that becomes generally available to the public by means other than Executive’s breach of this Section 9
(for example, not as a result of Executive’s unauthorized release of marketing materials), (2) is in Executive’s
possession, or becomes available to Executive, on a non-confidential basis, from a source other than the Company or (3) Executive
is required by law, regulation, court order or discovery demand to disclose; provided, however, that in the case of clause (3),
Executive gives the Company, to the extent permitted by law, reasonable notice prior to the disclosure of the Confidential Information
and the reasons and circumstances surrounding such disclosure to provide the Company an opportunity to seek a protective order
or other appropriate request for confidential treatment of the applicable Confidential Information.

 

     

     

    

 

(b)       Executive
agrees that all Confidential Information, whether prepared by Executive or otherwise coming into his possession, shall remain the
exclusive property of the Company during Executive’s employment with the Company. Executive further agrees that Executive
shall not, except for the benefit of the Company pursuant to the exercise of his duties in accordance with this Agreement or with
the prior written consent of the Company, use or disclose to any third party any of the Confidential Information described herein,
directly or indirectly, either during Executive’s employment with the Company or at any time following the termination of
Executive’s employment with the Company.

 

(c)       Upon
termination of this Agreement, Executive agrees that all Confidential Information and other files, documents, materials, records,
notebooks, customer lists, business proposals, contracts, agreements and other repositories containing information concerning the
Company or the business of the Company (including all copies thereof) in Executive’s possession, custody or control, whether
prepared by Executive or others, shall remain with or be returned to the Company as soon as practicable after the Date of Termination.

 

(d)       Nothing
in this Agreement will preclude, prohibit or restrict Executive from (i) communicating with, any federal, state or local administrative
or regulatory agency or authority, including but not limited to the Securities and Exchange Commission (the “SEC”);
(ii) participating or cooperating in any investigation conducted by any governmental agency or authority; or (iii) filing a charge
of discrimination with the United States Equal Employment Opportunity Commission or any other federal state or local administrative
agency or regulatory authority. Nothing in this Agreement, or any other agreement between the parties, prohibits or is intended
in any manner to prohibit, Executive from (A) reporting a possible violation of federal or other applicable law or regulation to
any governmental agency or entity, including but not limited to the Department of Justice, the SEC, the U.S. Congress, and any
governmental agency Inspector General, or (B) making other disclosures that are protected under whistleblower provisions of federal
law or regulation. This Agreement does not limit Executive’s right to receive an award (including, without limitation, a
monetary reward) for information provided to the SEC. Executive does not need the prior authorization of anyone at the Company
to make any such reports or disclosures, and Executive is not required to notify the Company that Executive has made such reports
or disclosures. Nothing in this Agreement or any other agreement or policy of the Company is intended to interfere with or restrain
the immunity provided under 18 U.S.C. §1833(b). Executive cannot be held criminally or civilly liable under any federal or
state trade secret law for the disclosure of a trade secret that is made (i) (A) in confidence to federal, state or local government
officials, directly or indirectly, or to an attorney, and (B) for the purpose of reporting or investigating a suspected violation
of law; (ii) in a complaint or other document filed in a lawsuit or other proceeding, if filed under seal; or (iii) in connection
with a lawsuit alleging retaliation for reporting a suspected violation of law, if filed under seal and does not disclose the trade
secret, except pursuant to a court order. The foregoing provisions regarding protected disclosures are intended to comply with
all applicable laws. If any laws are adopted, amended or repealed after the execution of this Agreement, this Section 9(d) shall
be deemed to be amended to reflect the same.

 

 

     

     

    

 

10.       Non-Competition
and Non-solicitation.

 

(a)       As
part of the consideration for the compensation and benefits to be paid to Executive hereunder, to protect Confidential Information
of the Company and its customers and clients that have been and will be entrusted to Executive, the business goodwill of the Company
and its subsidiaries that will be developed in and through Executive and the business opportunities that will be disclosed or entrusted
to Executive by the Company and its subsidiaries, and as an additional incentive for the Company to enter into this Agreement,
from the date hereof through the first anniversary of the Date of Termination (the “Restricted Period”),
Executive will not (other than for the benefit of the Company pursuant to this Agreement), directly or indirectly:

 

(i)       engage
in, or carry on or assist, individually or as a principal, owner, officer, director, employee, shareholder, consultant, contractor,
partner, member, joint venturer, agent, equity owner or in any other capacity whatsoever (in any such capacity, an “Investor”),
any (A) any business directly competitive with the business in which the Company is engaged from time to time (“Competing
Business”) or (B) Business Enterprise (as defined below) that is otherwise directly competitive with the Company
within the states in which the Company conducts business;

 

(ii)       perform
for any corporation, partnership, limited liability company, sole proprietorship, joint venture or other business association or
entity (a “Business Enterprise”) engaged in any Competing Business any duty Executive has performed for the Company
that involved Executive’s access to, or knowledge or application of, Confidential Information;

 

(iii)       
induce or attempt to induce any customer, supplier, licensee or other business relation of the Company to cease doing business
with the Company or in any way interfere with the relationship between any such customer, supplier, licensee or business relation
and the Company;

 

(iv)       induce
or attempt to induce any customer, supplier, licensee or other business relation of the Company with whom Executive had direct
business contact in dealings during the Employment Period in the course of his employment with the Company to cease doing business
with the Company or in any way interfere with the relationship between any such customer, supplier, licensee or business relation
and the Company; or

 

(v)       solicit
with the purpose of hiring or hire any person who is or, within 180 days after such person ceased to be an employee of
the Company, was an employee of the Company.

 

(b)       Notwithstanding
the duration of the restrictions set forth in Section 10(a) above and subject to Section 10(e) below, the restrictions set forth
under Sections 10(a)(i) and (ii) shall expire after (x) 180 days following the Date of Termination, if Executive terminates this
Agreement under Sections 5(c) or 4(b) hereof or the Company terminates Executive’s employment without Cause under Sections
5(a) or 4(b) or (y) sixty (60) days following the Date of Termination, if Executive elects to terminate this Agreement for any
other reason.

 

     

     

    

 

(c)       Notwithstanding
the foregoing restrictions of this Section 10, nothing in this Section 10 shall prohibit (i) any investment by Executive,
directly or indirectly, in securities which are issued by a Business Enterprise involved in or conducting a Competing Business,
provided that Executive, directly or indirectly, does not own more than five percent (5%) of the outstanding equity or voting
securities of such Business Enterprise or (ii) Executive, directly or indirectly, from owning any interest in any Business
Enterprise which conducts a Competing Business if such interest in such Business Enterprise is owned as of the date of this Agreement
and Executive does not have the right, in the case of (i) or (ii), through the ownership of a voting interest or otherwise,
to direct the activities of or associated with the business of such Business Enterprise.

 

(d)       Executive
acknowledges that each of the covenants of Section 10(a) are in addition to, and shall not be construed as a limitation upon,
any other covenant provided in Section 10(a). Executive agrees that the geographic boundaries, scope of prohibited activities,
and time duration of each of the covenants set forth in Section 10(a) are reasonable in nature and are no broader than are
necessary to maintain the confidentiality and the goodwill of the Company’s proprietary and Confidential Information, plans
and services and to protect the other legitimate business interests of the Company, including without limitation the goodwill developed
by Executive with Company’s customers, suppliers, licensees and business relations.

 

(e)       If,
during any portion of the Restricted Period, Executive is not in compliance with the terms of Section 10(a), the Company shall
be entitled to, among other remedies, compliance by Executive with the terms of Section 10(a) for an additional period of
time (i.e., in addition to the Restricted Period) that shall equal the period(s) over which such noncompliance occurred.

 

(f)       The
parties hereto intend that the covenants contained in Section 10(a) be construed as a series of separate covenants, one for
each defined province in each geographic area in which Executive on behalf of the Company conducts business. Except for geographic
coverage, each such separate covenant shall be deemed identical in terms to the applicable covenant contained in Section 10(a).
Furthermore, each of the covenants in Section 9(a) shall be deemed a separate and independent covenant, each being enforceable
irrespective of the enforceability (with or without reformation) of the other covenants contained in Section 10(a).

 

11.       Notices.

 

All notices and other
communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered
personally, mailed by certified mail (return receipt requested) or sent by overnight delivery service to the parties at the following
addresses or at such other addresses as shall be specified by the parties by like notice, in order of preference of the recipient:

 

	To VNR or the Company:	To Executive:
	To the Secretary of VNR	At the most recent address on file

 

     

     

    

Notice so given shall, in the case of mail, be deemed to be given and received on the fifth calendar day after posting, and in
the case overnight delivery service, on the date of actual delivery.

 

12.       Severability
and Reformation.

 

If any one or more
of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions shall remain in full force
and effect, and the invalid, void or unenforceable provisions shall be deemed severable. Moreover, if any one or more of the provisions
contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or
subject, it shall be reformed by limiting and reducing it to the minimum extent necessary, so as to be enforceable to the extent
compatible with the applicable law as it shall then appear.

 

13.       Assignment.

 

This Agreement shall
be binding upon and inure to the benefit of the heirs and legal representatives of Executive and the permitted assigns and successors
of VNR, but neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise subject to hypothecation
by Executive without the express written consent of VNR (except in the case of death by will or by operation of the laws of intestate
succession) or by VNR, except that VNR may assign this Agreement to any successor (whether by merger, purchase or otherwise) to
all or substantially all of the stock assets or businesses of VNR, if such successor expressly agrees to assume the obligations
of VNR hereunder.

 

14.       Amendment.

 

This Agreement may
be amended only by writing signed by both Executive and by a duly authorized representative of VNR (other than Executive).

 

15.       Assistance
in Litigation.

 

Executive shall reasonably
cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the
future against or on behalf of the Company that relate to events or occurrences that transpired while Executive was employed by
the Company. Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being
available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient
times. Executive also shall cooperate fully with the Company in connection with any investigation or review by any Federal, state,
or local regulatory authority as any such investigation or review relates, to events or occurrences that transpired while Executive
was employed by the Company. The Company will pay Executive an agreed upon reasonably hourly rate for Executive’s cooperation
pursuant to this Section 15.

 

     

     

    

 

16.       Beneficiaries;
References.

 

Executive shall be
entitled to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any
compensation or benefit payable hereunder following Executive’s death, and may change such election, in either case by giving
the Company written notice thereof. In the event of Executive’s death or a judicial determination of his incompetence, reference
in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative.
Any reference to the masculine gender in this Agreement shall include, where appropriate, the feminine.

 

17.       Use
of Name, Likeness and Biography.

 

The Company shall have
the right (but not the obligation) to use, publish and broadcast, and to authorize others to do so, the name, approved likeness
and approved biographical material of Executive to advertise, publicize and promote the business of the Company and its affiliates,
but not for the purposes of direct endorsement without Executive’s consent. This right shall terminate upon the termination
of this Agreement. An “approved likeness” and “approved biographical material” shall be, respectively,
any photograph or other depiction of Executive, or any biographical information or life story concerning the professional career
of Executive.

 

18.       Governing
Law.

 

THIS AGREEMENT SHALL
BE CONSTRUED, INTERPRETED AND GOVERNED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REFERENCE TO RULES RELATING
TO CONFLICTS OF LAW.

 

19.       Entire
Agreement.

 

This Agreement contains
the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes in all respects any
prior or other agreement (including the Prior Agreement) or understanding, written or oral, between the Company or any affiliate
of the Company and Executive with respect to such subject matter. For the avoidance of doubt, Executive acknowledges and agrees
that the Company has satisfied all obligations that it has owed, and that it ever could owe, under the Prior Agreement and that
Executive has no further rights thereunder.

 

20.       Withholding.

 

The Company shall be
entitled to withhold from payment to Executive of any amount of withholding required by law.

 

21.       Counterparts.

 

This Agreement may
be executed in two or more counterparts, each of which will be deemed an original.

 

     

     

    

 

22.       Remedies.

 

The parties recognize
and affirm that in the event of a breach of Sections 9 or 10 of this Agreement, money damages would be inadequate and
VNR would not have an adequate remedy at law. Accordingly, the parties agree that in the event of a breach or a threatened breach
of Sections 9 or 10, VNR may, in addition and supplementary to other rights and remedies existing in its favor, apply
to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to
enforce or prevent any violations of the provisions hereof (without posting a bond or other security). In addition, Executive agrees
that in the event a court of competent jurisdiction or an arbitrator finds that Executive violated Section 9 or 10, the
time periods set forth in those Sections shall be tolled until such breach or violation has been cured. Executive further agrees
that VNR shall have the right to offset the amount of any damages resulting from a breach by Executive of Section 9 or 10
against any payments due Executive under this Agreement. The parties agree that if one of the parties is found to have breached
this Agreement by a court of competent jurisdiction or arbitrator, the breaching party will be required to pay the non-breaching
party’s attorneys’ fees reasonably incurred in prosecuting the non-breaching party’s claim of breach.

 

23.       Non-Waiver.

 

The failure by either
party to insist upon the performance of any one or more terms, covenants or conditions of this Agreement shall not be construed
as a waiver or relinquishment of any right granted hereunder or of any future performance of any such term, covenant or condition,
and the obligation of either party with respect hereto shall continue in full force and effect, unless such waiver shall be in
writing signed by VNR (other than Executive) and Executive.

 

24.       Announcement.

 

The Company shall have
the right to make public announcements concerning the execution of this Agreement and the terms contained herein, at the Company’s
discretion.

 

25.       Construction.

 

The headings and captions
of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement.
The language in all parts of this Agreement shall be in all cases construed in accordance to its fair meaning and not strictly
for or against the Company or Executive.

 

26.       Right
to Insure.

 

The Company shall have
the right to secure, in its own name or otherwise, and at its own expense, life, health, accident or other insurance covering Executive,
and Executive shall have no right, title or interest in and to such insurance. Executive shall assist the Company in procuring
such insurance by submitting to examinations and by signing such applications and other instruments as may be required by the insurance
carriers to which application is made for any such insurance.

 

     

     

    

 

27.       No
Inconsistent Obligations.

 

Executive represents
and warrants that to his knowledge he has no obligations, legal, in contract, or otherwise, inconsistent with the terms of this
Agreement or with his undertaking employment with the Company to perform the duties described herein. Executive will not disclose
to the Company, or use, or induce the Company to use, any confidential, proprietary, or trade secret information of others. Executive
represents and warrants that to his knowledge he has returned all property and confidential information belonging to all prior
employers, if he is obligated to do so.

 

28.       Binding
Agreement.

 

This Agreement shall
inure to the benefit of and be binding upon Executive, his heirs and personal representatives, and the Company, its successors
and assigns.

 

29.       Voluntary
Agreement.

 

Each party to this
Agreement has read and fully understands the terms and provisions hereof, has had an opportunity to review this Agreement with
legal counsel, has executed this Agreement based upon such party’s own judgment and advice of counsel (if any), and knowingly,
voluntarily, and without duress, agrees to all of the terms set forth in this Agreement. The parties have participated jointly
in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement
will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring
any party because of authorship of any provision of this Agreement. Except as expressly set forth in this Agreement, neither the
parties nor their affiliates, advisors and/or their attorneys have made any representation or warranty, express or implied, at
law or in equity with respect of the subject matter contained herein. Without limiting the generality of the previous sentence,
the Companies, their affiliates, advisors, and/or attorneys have made no representation or warranty to Executive concerning the
state or Federal tax consequences to Executive regarding the transactions contemplated by this Agreement.

 

30.       Section 409A
of the Code.

 

This Agreement is intended
to comply with Section 409A of the Code, and the Treasury regulations and other interpretive guidance issued thereunder (collectively,
“Section 409A”), or to be treated as exempt therefrom, and shall be construed and administered in
accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation
pay due to an involuntary separation from service, as a short-term deferral, or as any other compensation that is otherwise exempt
from Section 409A shall be excluded from Section 409A to the maximum extent possible. Any payments to be made under this
Agreement upon a termination of Executive’s employment that are subject to Section 409A shall only be made if such termination
of employment constitutes a “separation from service” under Section 409A. Notwithstanding any provision in this
Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under
Section 409A if Executive’s receipt of such payment or benefit is not delayed until the earlier of (i) the date
of Executive’s death or (ii) the date that is six months after the Date of Termination of Executive’s employment
hereunder (such date, the “Section 409A Payment Date”), then such payment or benefit shall not be
provided to Executive (or Executive’s estate, if applicable) until the Section 409A Payment Date. Each payment under
this Agreement is intended to be a “separate payment” and not one of a series of payments for purposes of Section 409A.
Notwithstanding the foregoing, the Company does not guarantee any particular tax effect, and Executive shall be solely responsible
and liable for the satisfaction of all taxes, penalties and interest that may be imposed on or for the account of Executive in
connection with the Agreement (including any taxes, penalties and interest under Section 409A), and neither the Company, nor any
of its affiliates, shall have any obligation to indemnify or otherwise hold Executive (or any beneficiary) harmless from any or
all of such taxes, penalties or interest.

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Employment Agreement on the dates below

 

	 	EXECUTIVE
	 	 	 
	 	/s/ Richard A. Robert
	 	Richard A. Robert
	 	 	 
	 	Date:	August 1, 2017
	 	 	 
	 	VANGUARD NATURAL RESOURCES, INC.
	 	 	 
	 	By:	/s/ Scott W. Smith
	 	 	 
	 	Its:	President and Chief Executive Officer
	 	 	 
	 	Date:	August 1, 2017

  

 

     

     

    

 

Appendix A

Quarterly Bonus Amounts

Executive will receive quarterly bonuses accrued under the Executive’s
Amended and Restated Employment Agreement with Vanguard Natural Resources, LLC, which was in effect prior to the Effective Date.
The schedule below provides for the receipt of the following accrued payments within five days of the Effective Date: (i) quarterly
bonuses with respect to the fiscal quarters ended (A) December 31, 2016; (B) March 31, 2017; and (C) June 30, 2017, all of which
have accrued and are payable now; and (ii) a bonus with respect to the period from July 1, 2017 to the Effective Date.

 

	Accrual Period	 	Quarter ended

December 31, 2016	 	 	Quarter ended

March 31, 2017	 	 	Quarter ended

June 30, 2017	 	 	July 1, 2017 -

Effective Date1	 
	Bonus	 	$	124,844	 	 	$	145,469	 	 	$	145,469	 	 	$	48,490	 

  

Executive shall receive bonus payments through
the end of the year ended December 31, 2017 in accordance with the Company’s pre-emergence annual cash bonus program. Executive
will also receive future additional payments as established by the Board of Directors of Vanguard Natural Resources, Inc.

 

 

 

 

 

1
One-third of the estimate quarterly bonus payment for the quarter ended September 30, 2017.

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