Document:

August
22, 2016

 

Joseph
Funk

P.
O. Box 2540

Coeburn,
VA 24230

 

	 	Re:	Employment
    Agreement (the “Agreement”) dated November 14, 2014 between Rhino GP LLC (“Rhino”) and Joseph Funk
    (“Employee”)

 

Dear
Joe:

 

As
we have discussed, the parties hereby agree to the modification of the Agreement as provided herein in connection with a successful
sale of the equity interests of The Elk Horn Coal Company, LLC (“Elk Horn”) and employment of Employee by purchaser
of the equity interest. Employee waives no other rights or privileges contained in the Agreement. If neither the sale and the
employment of Employee by purchaser occurs, this modification of the Agreement is not valid or binding. Rhino and Employee agree
as follows:

 

	 	1.	The
    term of the Agreement shall be amended to end on December 31, 2016. Employee will remain an employee of Rhino, with current
    benefits (including company automobile, health insurance, and reimbursement of expenses), until the end of such term. However,
    company shall provide health insurance at same terms for a period of 90 days after final termination, including any extensions
    of term.
	 	 	 
	 	2.	In
    exchange for all compensation under the EBITDA plan and in exchange for shorting of the term of the Agreement, employee agrees
    to a total compensation paid on or prior to December 31, 2016 of $465,000. The payment shall consist of $150,000 in cash paid
    by August 16, 2016 and $115,000 in salary payments for the period starting 14 days after the close of the EHCC sale and December
    31, 2016. The balance of $200,000 will be paid in units (or cash at option of Rhino) with adequate guarantees to ensure the
    total cash received by Employee to not be less than $200,000 and must be received by Employee prior to December 31, 2016.
    The security for payment will be in form acceptable by Employee. Any amounts not yet received by Employee at December 31,
    2016, will be paid by Rhino within 3 business days.

 

    	 	 	 

     

    

 

Page
2

 

	 	3.	Rhino
    agrees that Employee may enter into an employment and or consulting agreement with Elk Horn, and hereby releases any noncompetition
    provisions contained in the Agreement.
	 	 	 
	 	4.	Employee
    agrees to use his commercially reasonable efforts and devote sufficient time to the performance of his duties under the Agreement,
    including travel to and from Rhino’s Lexington, Kentucky office.
	 	 	 
	 	5.	Employee
    agrees to promptly notify the management of Rhino if he becomes aware of any conflict or potential conflict between Elk Horn
    and Rhino occurring prior to December 30, 2016.
	 	 	 
	 	6.	Employee
    agrees to continue employment under same terms at the option of Rhino for the period of January 1, 2017 to March 31, 2017
    at a monthly rate of $25,000 per month paid on the beginning of each month. In addition to the monthly salary, Rhino will
    grant to Employee on the beginning of each month $5,000 in value of Rhino units without restriction. Should Rhino terminate
    employment prior to March 31, 2017, then the Employee will be entitled to a termination payment of $15,000 cash paid immediately.
    
	 	 	 
	 	7.	Effective
    as of the date of termination and fulfilment of all obligations of Rhino, Employee hereby releases, relinquishes, waives,
    and forever discharges Rhino (and its directors, officers, owners, and employees) from any and all liabilities, obligations,
    causes of action, suits, debts, covenants, controversies, agreements (except for obligations and agreements under the Agreement
    as amended hereby), warranties, representations, promises, damages, understandings, demands and claims, of whatever kind and
    nature, known and unknown, now existing which Employee now has or has had or may have had against Rhino, whether in law or
    equity, arising out of or relating to his employment, officer, and director relationship with Rhino (the “Relationship”),
    including, without limitation, any tort or tortious act, whether of commission or omission.
	 	 	 
	 	8.	Effective
    as of the date hereof, Rhino hereby releases, relinquishes, waives, and forever discharges Employee from any and all liabilities,
    obligations, causes of action, suits, debts, covenants, controversies, agreements (except for obligations and agreements under
    the Agreement as amended hereby), warranties, representations, promises, damages, understandings, demands and claims, of whatever
    kind and nature, known and unknown, now existing or hereafter arising, which Rhino now has or has had or may have had or will
    have against Employee, whether in law or equity, arising out of or relating to the Relationship, including, without limitation,
    any tort or tortious act, whether of commission or omission.
	 	 	 
	 	9.	Company
    will provide Directors and Officer coverage against all claims and litigation against employee and pay any and all defense
    cost arising out of any and all claims relating to his employment with Rhino and for the time of his employment with Rhino.
    

 

Except
as specifically modified hereby, the Agreement shall remain in full force and effect, and is hereby ratified and affirmed. In
the event that no sale and no employment by Elk Horn occurs, then the modifications above are without meaning and not effective.

 

    	 	 	 

     

    

 

Page
3

 

If
the forgoing reflects your understanding and agreement, please execute this letter where indicated below, and return it to us.

 

	 	Very
    truly yours,
	 	 	 
	 	Rhino
    GP LLC
	 	 	 
	 	By:	/s/ Whitney
    Kegley
	 	Title:	VP/General
    Counsel 

 

The
foregoing is acknowledged and agreed:

 

	/s/ Joseph
    Funk	 
	Joseph
    FunkEX-10.1

 Exhibit 10.1 

THIRD AMENDMENT 
 TO SENIOR SECURED
REVOLVING CREDIT AGREEMENT 
 THIS THIRD AMENDMENT TO SENIOR SECURED REVOLVING CREDIT AGREEMENT, dated as of August 31, 2016 (this
“Amendment”), to the Existing Credit Agreement (capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in Article I) is between NF INVESTMENT CORP., a Maryland corporation (the
“Borrower”) and KEYBANK NATIONAL ASSOCIATION, as administrative agent (in such capacity, the “Administrative Agent”) and the Lender (in such capacity, the “Lender”) under the Existing Credit
Agreement. 

W I T N E S S E T H: 

WHEREAS, the Borrower, the Lender and the Administrative Agent are parties to the Senior Secured Revolving Credit Agreement, dated as of March
27, 2014 (as amended by the First Amendment to Senior Secured Revolving Credit Agreement, dated as of August 22, 2014 and the Second Amendment to Senior Secured Revolving Credit Agreement, dated as of December 12, 2014, the “Existing Credit
Agreement”; as amended by this Amendment and as the same may be further amended, supplemented, amended and restated or otherwise modified from time to time, the “Credit Agreement”); 

WHEREAS, the Borrower has requested that the Lender agree to amend the Existing Credit Agreement and the Lender is willing, on the terms and
subject to the conditions hereinafter set forth, to agree to the amendments set forth below and the other terms hereof; 
 NOW, THEREFORE,
the parties hereto hereby covenant and agree as follows: 
 ARTICLE I 

DEFINITIONS 
 SECTION
1.1. Certain Definitions. The following terms when used in this Amendment shall have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof): 

“Administrative Agent” is defined in the preamble. 

“Amendment” is defined in the preamble. 

“Borrower” is defined in the preamble. 

“Credit Agreement” is defined in the first recital. 

“Existing Credit Agreement” is defined in the first recital. 

“Third Amendment Effective Date” is defined in Article III. 

 “Lender” is defined in the preamble. 

SECTION 1.2. Other Definitions. Capitalized terms for which meanings are provided in the Existing Credit Agreement are, unless
otherwise defined herein or the context otherwise requires, used in this Amendment with such meanings. 
 ARTICLE II 

AMENDMENT TO EXISTING CREDIT AGREEMENT 

Subject to the occurrence of the Second Amendment Effective Date (as hereinafter defined), the Existing Credit Agreement is amended in
accordance with this Article II. 
 SECTION 2.1. Amendments to Section 1.01. Section 1.01 of the Existing Credit
Agreement is hereby amended as follows: 
 (a) The definition of “Applicable Margin” in Section 1.01 of the
Existing Credit Agreement is hereby amended and restated as follows: 
 ““Applicable Margin” means:
(a) with respect to any ABR Loan, (i) prior to the Commitment Termination Date, 1.00% per annum and (ii) following the Commitment Termination Date, 1.50%; and (b) with respect to any Eurocurrency Loan, (i) prior to the Commitment
Termination Date, 2.25% per annum and (ii) following the Commitment Termination Date, 2.50%.”. 
 (b) The definition of
“Commitment Termination Date” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated as follows: 

““Commitment Termination Date” means the earlier of (a) May 2, 2018 and (b) the date of the Initial
Public Offering”. 
 (c) The definition of “LIBO Rate” in Section 1.01 of the Existing Credit Agreement is
hereby amended and restated as follows: 
 ““LIBO Rate” means, for any Interest Period, in the case of
Eurocurrency Borrowings, the ICE Benchmark Administration Limited London interbank offered rate per annum for deposits in Dollars for a period equal to one month as displayed in the Bloomberg Financial Markets System (or such other page on that
service or such other service designated by the ICE Benchmark Administration Limited interbank offered rate for the display of such Administration’s London interbank offered rate for deposits in Dollars) as of 11:00 a.m., London time on the day
that is two Business Days prior to the first day of the Interest Period; provided that if the Administrative Agent determines that the relevant foregoing sources are unavailable for the relevant Interest Period, LIBO Rate shall mean the rate
of interest determined by the Administrative Agent to be the average (rounded upward, if necessary, to the nearest 1/100th of 1%) of the rate per annum at which the Administrative Agent could borrow funds if it were to do so by asking for and then
accepting interbank offers two (2) business days’ 

  
 2 

 
preceding the first day of such Interest Period in the London interbank market for Dollars as of 11:00 a.m. for delivery on the first day of such Interest Period, for the number of days comprised
therein and in an amount comparable to the amount of the Administrative Agent’s portion of the relevant Eurocurrency Borrowing; provided, that, if any LIBO Rate shall be less than zero, such rate shall be deemed to be zero for purposes
of this Agreement.” 
 SECTION 2.2. Amendment to Section 2.11. The first sentence of Section 2.11 of the Existing
Credit Agreement is hereby amended to read as follows: 
 The Borrower agrees to pay to the Administrative Agent for account of each Lender a
commitment fee, which shall accrue at a rate per annum equal to 0.50% on the average daily unused amount of the Commitment of such Lender during the period from and including the date hereof to but excluding the earlier of the date such commitment
terminates and the Commitment Termination Date.
 SECTION 2.3. Amendments to Section 5.13. Section 5.13 of the Existing
Credit Agreement is hereby amended as follows: 
 (a) The definition of “First Lien Covenant Lite Loan” in Section
5.13 of the Existing Credit Agreement is hereby amended and restated as follows: 
 ““First Lien Covenant Lite
Loan” means a First Lien Bank Loan with respect to which (i) the underlying instruments do not include any financial covenants or have no financial covenants with which compliance is determined on an ongoing maintenance basis and (ii) the
Underlying Borrower has a TTM EBITDA of at least $40,000,000 (or at least $30,000,000 if such loan is rated at least “B-” (or the equivalent) by at least two rating agencies); provided, that for all purposes hereunder, such a First
Lien Bank Loan which either contains a cross-default provision to, or is pari passu with, another loan of the underlying obligor that requires the underlying obligor to comply with either a financial covenant or a Maintenance Covenant (provided
that, for purposes of this proviso, compliance with such financial covenant or Maintenance Covenant shall be required whether or not such other loan is funded) shall be deemed not to be a First Lien Covenant Lite Loan. 

(b) The definition of “Second Lien Covenant Lite Loan” in Section 5.13 of the Existing Credit Agreement is hereby
amended and restated as follows: 
 “Second Lien Covenant Lite Loan” means a Second Lien Bank Loan with
respect to which (i) the underlying instruments do not include any financial covenants or have no financial covenants with which compliance is determined on an ongoing maintenance basis and (ii) the Underlying Borrower has a TTM EBITDA of at least
$40,000,000 (or at least $30,000,000 if such loan is rated at least “B-” (or the equivalent) by at least two rating agencies); provided, that for all purposes hereunder, such a Second Lien Bank Loan which either contains a

  
 3 

 
cross-default provision to, or is pari passu with, another loan of the underlying obligor that requires the underlying obligor to comply with either a financial covenant or a Maintenance Covenant
(provided that, for purposes of this proviso, compliance with such financial covenant or Maintenance Covenant shall be required whether or not such other loan is funded) shall be deemed not to be a Second Lien Covenant Lite Loan.”. 

ARTICLE III 
 CONDITIONS TO
EFFECTIVENESS 
 SECTION 3.1. Effective Date. This Amendment shall become effective on the date (the “Third Amendment
Effective Date”) when the Administrative Agent shall have received counterparts of this Amendment duly executed and delivered on behalf of the Borrower and the of the Lender. 

ARTICLE IV 
 MISCELLANEOUS 

SECTION 4.1. Cross-References. References in this Amendment to any Article or Section are, unless otherwise specified, to such
Article or Section of this Amendment. 
 SECTION 4.2. Loan Document Pursuant to Existing Credit Agreement. This Amendment is a
Loan Document executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with all of the terms and provisions of the Existing Credit Agreement, as
amended hereby, including Article IX thereof. 
 SECTION 4.3. Successors and Assigns. The provisions of this Amendment
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 SECTION
4.4. Counterparts. This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single
contract. Delivery of an executed counterpart of a signature page of this Amendment by telecopy electronically (e.g. pdf) shall be effective as delivery of a manually executed counterpart of this Amendment. 

SECTION 4.5. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of
New York. 
 SECTION 4.6. Full Force and Effect; Limited Amendment. Except as expressly amended hereby, all of the
representations, warranties, terms, covenants, conditions and other provisions of the Existing Credit Agreement and the other Loan Documents shall remain unchanged and shall continue to be, and shall remain, in full force and effect in accordance
with their respective terms. The amendment set forth herein shall be limited precisely as provided for 

  
 4 

 
herein to the provisions expressly amended herein and shall not be deemed to be an amendment to, waiver of, consent to or modification of any other terms or provisions of the Existing Credit
Agreement or any other Loan Document or of any transaction or further or future action on the part of the Borrower which would require the consent of the Lenders under the Existing Credit Agreement or any of the Loan Documents. Upon and after the
execution of this Amendment by each of the parties hereto, each reference in the Existing Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Existing Credit Agreement,
and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Existing Credit Agreement, shall mean and be a reference to the Existing Credit
Agreement as modified hereby. 
 SECTION 4.7. Representations and Warranties. To induce the Lenders to execute and deliver this
Amendment, the Borrower hereby represents and warrants to the Lenders on the Second Amendment Effective Date that (A) the representations and warranties contained in Article III of the Existing Credit Agreement and the other Loan Documents are true
and correct in all material respects, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date and (B) no Default
has occurred and is continuing. 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the date
first above written. 
  

					
	BORROWER:	 	NF INVESTMENT CORP.
			
		 	By:	 	

 
		 	Name:	 	Orit Mizrachi
		 	Title:	 	Chief Operating Officer

  
 SIGNATURE PAGE TO THIRD AMENDMENT
– NF INVESTMENT 

					
	 LENDER:
	 	KEYBANK NATIONAL ASSOCIATION
		 	as Administrative Agent and the Lender
			
		 	By:	 	

 
		 	Name:	 	RICHARD ANDERSEN
		 	Title:	 	Designated Signer

  
 SIGNATURE PAGE TO THIRD AMENDMENT
– NF INVESTMENT

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