EMPLOYMENT AGREEMENT AS AMENDED AND RESTATED

Exhibit 10.12

EMPLOYMENT AGREEMENT

AS AMENDED AND RESTATED

THIS EMPLOYMENT AGREEMENT (this “Agreement”), originally effective as of May 25, 2006 (the “Effective Date”), is amended and restated on December 23, 2008 between Massey Energy Company, a Delaware corporation (the “Company”), and Michael K. Snelling (the “Executive”). This Agreement amends, restates and supersedes the employment agreement between the Company and the Executive effective as of the Effective Date (the “Original Agreement”).

WITNESSETH:

WHEREAS, Executive is a senior executive of the Company or one of its Subsidiaries (as defined in Section 25) and has made and is expected to continue to make major contributions to the short-term and long-term profitability, growth and financial strength of the Company; and

WHEREAS, the Board of Directors of the Company (the “Board,” as defined in Section 25) recognized that, as is the case with many publicly held corporations, the possibility of a Change in Control (as defined in Section 25) exists and consequently entered into a Change in Control Severance Agreement dated May 25, 2006 with the Executive, which the Company and the Executive amended and restated effective January 1, 2009 (the “Change in Control Agreement”); and

WHEREAS, the Board determined that Executive should be provided with certain employment rights during his continued employment prior to the generally applicability of the Change in Control Agreement, as well as certain severance rights in the event his employment ends under circumstances where the Change in Control Agreement is inapplicable; and

WHEREAS, the Board determined that Executive will not be entitled to payments and benefits under the Original Agreement and the Change in Control Agreement with respect to the same set of circumstances and that it is desirable to provide for appropriate coordination, without duplication, of payment and benefit rights in the event Executive becomes entitled to payments or benefits pursuant to the Original Agreement and at the same time is entitled to payments and benefits under the Change in Control Agreement; and

WHEREAS, in consideration of Executive’s continued employment with the Company, the Company desired to provide Executive with certain compensation and benefits set forth in the Original Agreement in order to ameliorate the financial and career impact on Executive in the event Executive’s employment with the Company is terminated for certain reasons prior to a Change in Control; and

WHEREAS, the Company and the Executive entered into the Original Agreement, effective as of the Effective Date; and

WHEREAS, the Company and the Executive now desire to amend and restate the Original Agreement to reflect provisions of Section 409A of the Code and the final regulations issued thereunder, which amendment is to be effective as of the original Effective Date.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth (including definitions of capitalized terms which are set forth in Section 25 and throughout this Agreement) and intending to be legally bound hereby, the Company and Executive agree as follows:

1. Employment .

(a) Subject to the terms and conditions of this Agreement, the Company agrees to employ Executive during the term hereof as a senior executive of the Company or one of its Subsidiaries (as defined in Section 25). In such capacity, Executive shall report to such person as the President and Chief Executive Officer of the Company shall determine, and shall have the customary powers, responsibilities and authorities of executives holding such positions in corporations of the size, type and nature of the Company or Subsidiary which employs him, as it exists from time to time, and as are assigned by the President and Chief Executive Officer of the Company.

(b) Subject to the terms and conditions of this Agreement, Executive hereby accepts such employment originally commencing as of the Effective Date and agrees, subject to any period of vacation and sick leave, to devote his full business time and efforts to the performance of services, duties and responsibilities in connection therewith.

2. Term of Agreement .

(a) Regular Term . The term of this Agreement (the “Term”) commenced on the Effective Date and shall continue until May 25, 2009.

(b) Termination of Agreement Upon a Change in Control . Notwithstanding the foregoing, this Agreement shall automatically terminate if Executive is employed by the Company or any Subsidiary (as defined in Section 25) at the time a Change in Control occurs.

3. Compensation .

(a) Salary . During the Term, the Company shall pay Executive a base salary (“Base Salary”) at an annual rate of $320,000 effective as of June 1, 2006. Base Salary shall be payable in accordance with the ordinary payroll practices of the Company (but no less frequently than monthly). During the Term, the Board shall, in good faith, review, at least annually, Executive’s Base Salary in accordance with the Company’s customary procedures and practices regarding the salaries of senior executives and may, if determined by the Board to be appropriate, increase, but not decrease, Executive’s Base Salary following such review. “Base Salary” for all purposes herein shall be deemed to be a reference to any such increased amount.

(b) Annual Bonus . In addition to his Base Salary, during the Term, Executive shall be eligible to receive annual cash bonus awards for fiscal years 2007, 2008 and 2009 of $185,000, which amount may be increased at the discretion of the Compensation Committee. Each annual cash bonus award shall be subject to the terms and conditions set forth by the Compensation Committee of the Board for each fiscal year. Except as provided herein, the annual cash bonus awards shall be payable to Executive at the time bonuses are paid to other similarly situated executives of the Company and its Subsidiaries in accordance with the Company’s policies and practices as set by the Board.

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(c) Long-term Incentive Awards . During the Term, Executive shall be eligible to receive long-term incentive awards as a Level 2 participant in the Company’s long-term incentive awards program. The long-term incentive awards shall be subject to the terms and conditions set forth by the Compensation Committee of the Board for each long-term incentive period. Except as provided herein, long-term cash incentive awards shall be payable or shall vest, as the case may be, at the time such awards are paid or vest for similarly situated executives of the Company and its Subsidiaries in accordance with the Company’s policies and practices as set by the Board.

(d) Existing Equity- and Cash-Based Compensation . Any outstanding agreement made with Executive under the Company’s long-term cash and equity incentive program, including, stock option, restricted stock, restricted unit, other equity- or cash-based incentive awards or other equity- or cash-based incentive agreements as of the Effective Date and the date hereof (the “Ancillary Documents”) shall remain in full force and effect and shall not be affected by this Agreement, except as set forth in Section 6(c).

4. Employee Benefit Programs, Plans and Practices; Perquisites . The Company shall provide Executive while employed hereunder with coverage under such employee benefit plans (commensurate with his position in the Company and to the extent permitted under any employee benefit plan) in accordance with the terms thereof, Directors and Officers insurance policy, which covers claims arising out of actions or inactions occurring during the Term, in accordance with the Directors and Officers insurance policy, and other employee benefits which the Company may make available to other similarly situated executives of the Company and its Subsidiaries from time to time in its discretion. The Company also shall provide Executive while employed hereunder with perquisites which the Company may make available to other similarly situated executives of the Company and its Subsidiaries from time to time in its discretion.

5.  Expenses . Subject to prevailing Company policy or such guidelines as may be established by the Board, the Company will reimburse Executive for all reasonable expenses incurred by Executive in carrying out his duties no later than the last day of the year following the year in which the Executive incurs the reimbursable expense.

6. Termination of Employment .

(a) Employment Rights . Executive and the Company acknowledge that, except as may otherwise be provided under this Agreement or any other written agreement between Executive and the Company or a Subsidiary or as set forth in Section 6(b), the employment of Executive by the Company is “at will” and may be terminated by the Company without further compensation. Nothing expressed or implied in this Agreement will create any right or duty on the part of the Company or Executive to have Executive remain in the employment of the Company or any Subsidiary.

(b) Termination in a Covered Termination . Executive shall be entitled to the payments provided in Section 6(c) on account of a Covered Termination. A “Covered Termination” is the severance of Executive’s employment that occurs during the Term and prior to the occurrence of a Change in Control, under circumstances where Executive is not entitled to any compensation, payment or benefit under the Change in Control Agreement and due to either (i) a termination by the Company other than for Cause (as defined in Section 25) and other than due to Executive’s death or Disability (as defined in Section 25) or (ii) a termination by Executive for Good Reason (as defined in Section 25).

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(c) Payments and Benefits Upon a Covered Termination . Subject to the provisions of Sections 7, 8 and 9 hereof, in the event a Covered Termination described in Section 6(b) occurs, the Company shall pay or provide to Executive on or beginning, as applicable, the first business day that occurs following sixty (60) days after his Termination Date (as defined in Section 25):

(i) a lump sum cash payment equal to Executive’s Base Salary in effect on his Termination Date from the day following the Termination Date to the end of the Term, but in no event shall the aggregate amount of such payments exceed 2.5 times Executive’s Base Salary as of the Termination Date;

(ii) a lump sum cash payment equal to Executive’s Retention Cash Awards (as defined in Section 25) that are unpaid as of the Termination Date;

(iii) a lump sum cash payment equal to the sum of (A) any earned annual cash bonus award for fiscal year 2006, 2007 or 2008 that is unpaid prior to Executive’s Termination Date (determined without regard to any requirement that Executive remain employed until the regular payment date therefor) and (B) any and all target annual cash bonus awards for each of fiscal years 2006, 2007, and 2008 that has not ended prior to Executive’s Termination Date, plus five twelfths (  ⁵ / 12 ) of Executive’s target annual cash bonus award for fiscal year 2009. (For target annual cash bonus awards for 2007, 2008, or 2009 that have not been set as of the Termination Date, the target annual cash bonus awards for such year(s) shall be equal to Executive’s last target annual cash bonus award that has been set.);

(iv) a lump sum cash payment equal to the sum of (A) any earned long-term cash incentive bonus award for a long-term performance period that contains, as a last year of measurement, fiscal year 2006, 2007 or 2008 and that has ended prior to Executive’s Termination Date that is unpaid as of the Termination Date (determined without regard to any requirement that Executive remain employed until the regular payment date therefor) and (B) any and all target long-term cash incentive bonus awards for each of the long-term performance periods that contain, as a last year of measurement, fiscal year 2006, 2007, or 2008, that has not ended prior to Executive’s Termination Date, plus twenty-nine thirty sixths (  ²⁹ / 36 ) of the target amount for the long-term performance period that contains, as a last year of measurement, fiscal year 2009. (For target long-term cash incentive bonus awards that have not been set as of the Termination Date, the target long-term cash incentive bonus awards shall be equal to Executive’s last annual target long-term cash incentive bonus award that has been set.);

(v) all outstanding equity-based awards granted to Executive prior to or during the Term of this Agreement but prior to the Termination Date, including but not limited to stock options, restricted stock and restricted units, that otherwise would vest during the Term of this Agreement, shall automatically be immediately vested on Executive’s Termination Date; and

(vi) from the day following the Termination Date to the end of the Term (the “Medical Coverage Period”), Executive shall continue to receive on a monthly basis the medical coverage in effect on his Termination Date (or generally

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comparable coverage) for himself and, if applicable, his spouse and dependents, as the same may be changed from time to time for employees generally, as if Executive had continued in employment during such period; or, as an alternative, the Company may elect to pay Executive cash in lieu of such coverage in an amount equal to Executive’s reasonable after-tax cost of continuing comparable coverage, where such coverage may not be continued by the Company (or where such continuation would adversely affect the tax status of the plan pursuant to which the coverage is provided), with any such cash payments to be made in accordance with the ordinary payroll practices of the Company (not less frequently than monthly) for employees generally for the period during which such cash payments are to be provided.

(A) If Executive does not receive the cash payment described in the preceding sentence, the Company shall take all commercially reasonable efforts to provide that the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (COBRA), health care continuation coverage period under section 4980B of the Code (as defined in Section 25) shall commence immediately after the Medical Coverage Period, with such continuation coverage continuing until the end of applicable COBRA health care continuation coverage period.

(B) If Executive would have been eligible for post-retirement medical coverage had he retired from employment during the Medical Coverage Period, but is not so eligible as the result of his Covered Termination, then at the conclusion of the benefit continuation period described in (A) above, the Company shall take all commercially reasonable efforts to provide Executive on a monthly basis with additional continued group medical coverage comparable to that which would have been available to him from time to time under the Company’s post-retirement medical program, for as long as such coverage would have been available under such program, or, as an alternative, the Company may elect to pay Executive cash in lieu of such coverage in an amount equal to Executive’s reasonable after-tax cost of continuing comparable coverage, where such coverage may not be continued by the Company (or where such continuation would adversely affect the tax status of the plan pursuant to which the coverage is provided), with any such cash payments to be made in accordance with the ordinary payroll practices of the Company (not less frequently than monthly) for employees generally for the period during which such cash payments are to be provided.

Notwithstanding anything to the contrary herein, in no event shall this Agreement entitle Executive to receive more than one payment for any award granted to Executive; if any award is earned or otherwise payable (other than as provided in this Agreement) but unpaid, any payment with respect to such award pursuant to this Agreement will be considered a full satisfaction of Executive’s rights with respect to such award; and if Executive has elected to defer the payment of one or more, or any portion, of any payment otherwise due to be made without regard to this Agreement into a nonqualified deferred compensation plan maintained by the Company or any of its Subsidiaries, then in lieu of payment directly to Executive, such payment, or the applicable portion thereof, elected to be deferred shall be paid or credited instead under such nonqualified deferred compensation plan if and to the extent that payment pursuant to this Agreement would be considered an impermissible acceleration or change in the time or form of payment thereof in violation of the requirements of Section 409A of the Code (as defined in Section 25).

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Notwithstanding the foregoing or any other provision of this Agreement or any Change in Control Agreement, the Company and Executive explicitly agree that Executive will not be entitled to payments and benefits under this Agreement and under any Change in Control Agreement with respect to the same set of circumstances and in the event Executive becomes entitled to payments or benefits pursuant to this Agreement and at the same time is entitled to payments and benefits under any Change in Control Agreement with respect to the same set of circumstances, Executive shall only be entitled to those payments and benefits under, and only be subject to the other applicable provisions of, this Agreement or the Change in Control Agreement (to the total exclusion of the payment and benefit rights and terms and conditions of the other agreement) based solely on which agreement provides in the aggregate, on an after-tax basis, the greatest value to Executive when each agreement’s payments and benefits are reasonably valued. Such valuation shall be determined in the sole and absolute discretion of the Company.

(d) Cessation of Employment on Account of Disability, Cause or Death . Notwithstanding anything in this Agreement to the contrary, if Executive’s employment terminates on account of Disability, Executive shall be entitled only to receive disability benefits under any disability program maintained by the Company that covers Executive, and Executive shall not be considered to have incurred a Covered Termination under this Agreement and shall not receive payments and benefits pursuant to this Section 6. If Executive’s employment terminates on account of Cause or because of his death, Executive shall not be considered to have incurred a Covered Termination under this Agreement and shall not receive payments and benefits pursuant to this Section 6.

(e) Beneficiaries . Executive shall be entitled to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any compensation 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. If Executive dies without having designated a beneficiary, or if the beneficiary so designated has predeceased Executive or cannot be located by the Company within one year after the date when the Company commenced making a reasonable effort to locate such beneficiary, then Executive’s surviving spouse, or if none, then Executive’s estate shall be deemed to be his beneficiary.

7. Nonqualified Deferred Compensation Plan Omnibus Provisions . Notwithstanding any other provision of this Agreement, it is intended that any payment or benefit which is provided pursuant to or in connection with this Agreement which is considered to be nonqualified deferred compensation subject to Section 409A of the Code (as defined in Section 25) shall be provided and paid in a manner, and at such time, including without limitation payment and provision of benefits only in connection with a permissible payment event contained in Section 409A occurs (e.g., death, disability, separation from service from the Company and its affiliates as defined for purposes of Section 409A of the Code), and in such form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Notwithstanding any other provision of this Agreement, the Board is authorized to amend this Agreement, to amend any election made by Executive under this Agreement and/or to delay the payment of any monies and/or provision of any benefits in such manner as may be determined by it to

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be necessary or appropriate to comply, or to evidence or further evidence required compliance, with Section 409A of the Code (including any transition or grandfather rules thereunder). For purposes of this Agreement, all rights to payments and benefits hereunder shall be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Section 409A of the Code. If Executive is a key employee (as defined in Section 416(i) of the Code without regard to paragraph (5) thereof) and any of the Company’s stock is publicly traded on an established securities market or otherwise, then payment of any amount or provision of any benefit under this Agreement which is considered to be nonqualified deferred compensation subject to Section 409A of the Code shall be deferred for six (6) months as required by Section 409A(a)(2)(B)(i) of the Code (the “409A Deferral Period”). In the event such payments are otherwise due to be made in installments or periodically during the 409A Deferral Period, the payments which would otherwise have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends, and the balance of the payments shall be made as otherwise scheduled. In the event benefits are required to be deferred, any such benefit may be provided during the 409A Deferral Period at Executive’s expense, with Executive having a right to reimbursement from the Company once the 409A Deferral Period ends, and the balance of the benefits shall be provided as otherwise scheduled. For purposes of this Agreement, severance of employment will be read to mean a “separation from service” within the meaning of Section 409A of the Code where it is reasonably anticipated that no further services would be performed after such date or that the level of bona fide services Executive would perform after that date (whether as an employee or independent contractor) would permanently decrease to no more than 20 percent of the average level of bona fide services performed over the immediately preceding thirty-six (36) month period (or, if lesser, the period of Executive’s service).

8. Release . Notwithstanding the foregoing, no payments shall be made or benefits provided under Section 6(c) unless Executive executes, and does not revoke, the Company’s standard written release, substantially in the form as attached hereto as Appendix A (the “Release”), of any and all claims against the Company and all related parties with respect to all matters arising out of Executive’s employment by the Company (other than any claim or entitlement under an employee benefit, long term cash or equity compensation plan, program, arrangement or agreement which is due pursuant to the terms of such plan, program, arrangement or agreement) or a termination thereof. Such Release, with the period for revoking the same having already expired, must be provided to the Company on or after, but no later than sixty (60) days following, Executive’s Termination Date.

9. Covenants Not to Compete and Not to Solicit; Breach of Agreement Obligations by Executive .

(a) Covenant Not to Compete . In the event Executive is entitled to receive payments and benefits under Section 6(c) above, then, for a period of one (1) year following Executive’s Termination Date, Executive shall not directly or indirectly engage in (whether as an employee, consultant, proprietor, partner, director or otherwise), or have any ownership interest in, or participate in a financing, operation, management or control of, any person, firm, corporation or business that is a Restricted Business in a Restricted Territory without the prior written consent of the Board. For this purpose, ownership, whether direct or beneficial, of no more than 5% of the outstanding securities entitled to vote generally in the election of directors of a publicly traded corporation shall not constitute a violation of this provision.

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(b) Covenant Not to Solicit . In the event Executive is entitled to receive payments and benefits under Section 6(c) above, then, for a period of one (1) year following Executive’s Termination Date, Executive shall not: (i) solicit, encourage or take any other action which is intended to induce any other employee, any supplier or any customer, of the Company or any Subsidiary to terminate his employment or relationship with the Company or any Subsidiary; or (ii) interfere in any manner with the contractual or employment relationship between the Company and any such employee, supplier or customer of the Company or any Subsidiary. The foregoing shall not prohibit Executive or any entity with which Executive may be affiliated from hiring a former employee of the Company or any Subsidiary; provided, that such hiring results exclusively from such former employee’s affirmative response to a general recruitment effort.

(c) Interpretation . The covenants contained herein are intended to be construed as a series of separate covenants, one for each of the counties, parishes, towns, cities or states or similar local governmental or political subdivisions of the Restricted Territory. Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant contained in the preceding subsections. If, in any judicial proceeding, the court shall refuse to enforce any of the separate covenants (or any part thereof) deemed included in such subsections, then such unenforceable covenant (or such part) shall be deemed to be eliminated from this Agreement for the purpose of those proceedings to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced.

(d) Remedies for Breach . In the event of Executive’s termination of employment, the Company’s obligations to provide the payments and benefits