exv10w30






Exhibit 10.30




EMPLOYMENT AGREEMENT




     THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into this 1st day of June, 2007
by and between Armstrong Coal Co. (“Employer”), 7701 Forsyth Boulevard, Suite 1000, St. Louis,
Missouri 63105 and Kenneth E. Allen (“Allen”), 6100 White Plains Road, White Plains, Kentucky 42464



     In consideration of the mutual covenants and promises contained herein, and other good and
valuable consideration, the adequacy and receipt of which are hereby acknowledged, Employer and
Allen hereby agree as follows.



     1. Duties and Position. Allen shall be employed as the Vice President of Operations of
Employer and shall report to Employer’s Chairman of the Board of Directors. Allen shall have such
duties as are customarily performed by persons serving in similar capacities in other businesses
similar to Employer’s business. Allen shall devote his full working time, attention, and best
efforts to performing all reasonably assigned responsibilities. Allen shall not, while employed by
Employer, engage in any other business or employment without the prior written approval of
Employer’s Board of Directors (the “Board”); provided, however, Allen shall be permitted to
continue his engagement in and with the other business relationships set forth on Exhibit A
attached hereto (the “Excluded Businesses”). Notwithstanding the foregoing, nothing herein is
intended or shall be construed as preventing Allen from engaging in such civic, charitable, or
political activities as do not interfere with the performance of Allen’s duties hereunder.



     2. Term of Employment.



          2.1 On-Going Term. Allen’s employment under this agreement shall be for 3 years
commencing on the date set forth above. However, the term of Allen’s employment under this
Agreement shall automatically extend for additional one (1) year terms until such time, if any, as
Employer or Allen give written notice to the other that such automatic extension shall cease, the
same of which shall be given with no less than sixty (60) days notice prior to the expiration of
the then current term.




          2.2 Exemption. Notwithstanding the foregoing, Allen’s employment hereunder
may be earlier terminated in accordance with the terms of Section 6 of this Agreement.




     3. Compensation.



          3.1 Base Salary Compensation. Employer shall pay Allen an initial annual base
salary of Two Hundred Forty Thousand Dollars ($240,000.00) (the “Salary Compensation”), which
Employer’s Board may elect to adjust, in their sole discretion and without any requirement that
they do so, on each anniversary of the date first written above. Allen’s Salary Compensation shall
be payable in equal periodic installments according to Employer’s customary payroll practices, but
no less frequently than bi-monthly.






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          3.2 Overriding Royalty. Allen will be paid a royalty of $0.05 per ton of coal mined
and sold from Employer properties as referenced in the Overriding Royalty Agreement(s) executed by
Employer and Allen of even date herewith (collectively, the “Overriding Royalty Agreement”).




          3.3 Withholding. All payments under this Section 3 shall be less such amounts as are
required to be withheld by law or as otherwise authorized by Allen in writing.




     4. Benefits.



          Allen shall be eligible to participate in such benefits as may be authorized and adopted from
time to time by the Board for Employer employees including, without limitation, any pension plan,
profit-sharing plan, or other qualified retirement plan and any group insurance plan. Employer
shall reimburse Allen for normal and reasonable business expenses incurred in performance of his
responsibilities as determined in the sole discretion of Employer. During each calendar year Allen
shall be entitled to the greater of three (3) weeks of vacation or such greater vacation as
Employer employees would be entitled to under Employer’s standard vacation policy. Employer may
furnish such other benefits to Allen as it shall determine, from time to time, within its
discretion, to be in the best interests of Employer and Allen. Nothing herein is intended or shall
be construed as precluding Employer from modifying or discontinuing any benefit plan, policy or
program.




     5. Termination of Employment. Allen’s employment with Employer under this
Agreement shall terminate:



          5.1 Cause. For “Cause” immediately upon notice from Employer to Allen. As used
herein, “Cause” shall mean:




               A. Allen’s failure substantially to perform his duties hereunder in a manner
satisfactory to Employer’s Board, as determined in good faith by Employer’s Board, provided
that Employer’s Board has given Allen written notice of the action(s) or omission(s) which
are claimed to constitute such failure and Allen does not fully remedy such failure within
ten (10) calendar days after receipt of the written notice;



               B. Allen has engaged in gross misconduct, dishonest, disloyal, illegal or unethical
conduct, or any other conduct which has or could reasonably have a detrimental impact on
Employer or its reputation, all facts to be determined in good faith by Employer’s Board;



               C. Allen has acted in a dishonest or disloyal manner, or breached any fiduciary duty to
Employer, that, in either case, results or was intended to result in personal profit to
Allen at the expense of Employer or any of its customers;



               D. Allen has been convicted of, pleads guilty, or enters a nolo plea, Alford plea or
plea or no contest to any felony.



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               E. Allen has one or more physical or mental impairments which have substantially
impaired his ability to perform the essential functions of his job under this Agreement.
Any dispute as to whether Allen has been so impaired shall be determined by Employer’s
Board in consultation with a physician appointed by Employer’s Board;



               F. Allen’s death;



               G. Any breach by Allen of his obligations under Sections 7-11 or 13 of this
Agreement; or



               H. Allen resigns under circumstances where a termination for “Cause” was impending or
could have reasonably been foreseen.



          5.2 Good Reason. For “Good Reason” immediately upon written notice from Allen to
Employer’s Board or at such later time as such notice may specify, which date shall not be more
than fourteen (14) calendar days after the date on which Employer is deemed to receive such notice.
As used herein, Good Reason shall mean a material demotion or reduction, without Allen’s consent,
in Allen’s duties.




          5.3 Change in Control. Upon the occurrence of a “Change in Control,” provided
Allen’s employment with Employer or an acquiring entity is terminated, other than for Cause, within
twelve (12) months of an event constituting a Change in Control. As used herein, “Change in
Control” means:




               A. any purchase or other acquisition by an individual or group of person(s) (including
entity(ies)) acting in concert, which results in persons who are shareholders of Employer
as of the date first written above no longer being the legal and beneficial owners of
fifty-one percent (51%) or more of the outstanding equity in Employer, excluding any
affiliates, parents, subsidiaries or related parties of Employer;



               B. consummation of a reorganization, merger, recapitalization, consolidation, or any
other transaction, in each case with respect to which persons who were shareholders of
Employer as of the date first written above do not, immediately thereafter, legally and
beneficially own fifty-one percent (51%) or more of the equity in the newly-organized,
merged, recapitalized, consolidated, or other resulting entity; or



               C. the sale of all or substantially all of the assets of Employer in a transaction
approved by the Board.



          5.4 Without Cause. Upon notice from Employer’s Board to Allen.




          5.5 Miscellaneous. Employer may pay Allen in lieu of having him work during all or
part of any notice period under this Section 5. Following any notice of termination, Allen shall
fully cooperate with Employer in all matters relating to the winding up of his pending work on
behalf of Employer and the orderly transfer of any such pending work to such others as may be
designated by Employer’s Board. To that end Employer shall be entitled to such full-time or
part-time services of Allen as Employer may reasonably require during all or any part of the period
from the time of giving any such notice until the effective date of such termination.






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     6. Separation Package



          6.1 Cause. In the event Employer terminates Allen’s employment for Cause, Allen shall
not be entitled to any compensation or benefits beyond his termination date except for as set forth
in the Overriding Royalty Agreement.




          6.2 Good Reason. In the event of resignation for Good Reason, Employer
shall:




               A. continue, for twelve (12) months following such termination, Allen’s Salary
Compensation at the same rate as such Salary Compensation was set hereunder on the day
prior to Allen’s termination;



               B. The overriding royalty will run with the land per the provisions of the Overriding
Royalty Agreement.



               C. pay, for twelve (12) months, the premiums for Allen and his dependents to continue
group health insurance under such group policy(ies), if any, on the same terms as Employer
provides to Employer employees, provided such payments may cease earlier than twelve (12)
months following termination if:




     (i) the applicable group policy does not permit continuation coverage
beyond the maximum time periods established by applicable law for
continuation coverage, in which case payments shall cease when the
applicable maximum period is reached for each covered individual; or




     (ii) Allen and/or any covered dependent(s) advise Employer that Allen
and/or any covered dependent(s) have obtained other satisfactory group
health coverage in which case coverage shall cease only for such individuals
who have obtained such other group coverage; and




     (iii) Employer ceases to provide any group health policy to any
employees.



          6.3 Without Cause. In the event Employer terminates Allen’s employment without Cause,
Employer shall provide Allen with the payments and benefits described in Section 6.2 (A) — (C).




          6.4 Change in Control. In the event of a termination under Section 5.3, Employer shall
provide Allen with the benefits on the terms described in Section 6.2 (B) and (C) for twelve (12)
months following termination. In addition, Employer shall, promptly following such termination, pay
Allen a lump sum payment equal to one (1) times Allen’s Salary Compensation at the time of his
termination plus any accrued and unpaid bonus pursuant to section 3.2.




          6.5 Miscellaneous. Any payments under this Section 6 shall be subject to such
deductions as may be required by law. In addition, in the event Allen violates any of the terms of
Section 7 or 9-11 of this Agreement, as determined in good faith by Employer’s Board, any payments
and benefits otherwise due under this Section 6 shall immediately cease and Allen






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shall be required to repay to Employer any amounts already paid to him under this Section 6. Any
payments under this agreement associated with termination of employment are conditional upon
Allen’s execution of an appropriate release of all future claims against Employer or its
successors.




     7. Confidential Information and Relationships. Allen acknowledges and agrees
that, in the course of his employment with Employer, he has and will continue to come into
possession of technical, financial and/or business information pertaining to Employer which is not
published or readily available to the public, including, but not limited to: financing
opportunities; market research and analyses; customer contact information, specifications, needs
and histories; contract terms; sales figures, reports and projections; marketing concepts and
plans; cost and pricing information; plans for future developments including product and market
expansion; and lists of and other information pertaining to and/or received from customers,
suppliers and/or employees (“Confidential Information”). Allen also acknowledges and agrees that he
has received training regarding Employer’s business and shall have contact with Employer’s
customers and suppliers. Such contacts will enable Allen to establish and maintain, at Employer’s
expense, favorable relationships and goodwill with such person/entities, and to influence with whom
such persons/entities do business. Allen acknowledges that Confidential Information and such
relationships and goodwill are important to and will greatly affect the success of Employer. Allen
agrees that during employment with Employer and at all times thereafter, regardless of how, when
and why employment may end, he shall hold in the strictest confidence, and shall not disclose,
duplicate and/or use for himself or any other person or entity any Confidential Information without
the prior written consent of the Chairman of the Board, or unless required to do so in order to
perform his responsibilities while employed by Employer. Allen also agrees that at all times during
his employment with Employer, he shall comply with all of Employer’s policies and procedures
relating to the protection and confidentiality of Confidential Information.



     8. No Other Contract. Allen warrants that he is not bound by any other agreement, oral
or written, which would limit or preclude him from performing any responsibility reasonably
assigned by Employer hereunder. Allen also agrees not to disclose to Employer or seek to induce
Employer to use, any confidential information, material or trade secret belonging to any other
person or entity.



     9. Work Product. Any and all designs, plans, inventions, products, improvements,
programs, specifications, methods, reports, notebooks, databases, notes, analyses, memoranda,
files, correspondence, rolodexes, and other embodiments of work conceived, made, discovered and/or
produced by Allen during his employment by Employer, either solely or jointly with others: (A) in
the course of performing any duties for Employer, (B) which are based, in whole or part, upon
Confidential Information, the supplies, facilities or business, financial or technical information
of Employer, or (C) which relate to the business of Employer (“Work Product”), shall be the sole
property of Employer or its designee and available to Employer or its designee at all times. Allen
agrees promptly to disclose and hereby assigns in perpetuity to Employer or its designee, without
royalty or other additional consideration, any and all of his rights to any and all Work Product.
Allen further agrees that during his employment by Employer and after that employment ends,
regardless of how, when and why, he shall, upon request from the Chairman of the Board or his
designee: (i) execute any and all applications for copyright, patent, trademark



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or other intellectual or proprietary right relating to Work Product which may be prepared for his
signature, (ii) assign to Employer or its designee any and all such applications, copyrights,
patents, trademarks or other intellectual or proprietary rights relating thereto, and (iii) assist
Employer or its designee, as Employer or its designee deems necessary, in order for Employer or its
designee to apply for, defend or enforce any copyright, patent, trademark or other intellectual or
proprietary right or otherwise protect its interests in Work Product. Employer or its designee
shall pay all expenses of preparing, filing and prosecuting any such application and of obtaining
such copyrights, patents, trademarks or other intellectual or proprietary right.




     10. Return of Property. All documents, records, reports, lists, databases, software,
analyses, notes and similar items relating to Employer’s business that Allen has or may prepare or
receive in the course of his employment are and shall remain Employer’s property. At such times as
Employer’s Board may request, and upon separation from employment with Employer, regardless of how,
when and why employment may end, Allen shall immediately deliver to Employer’s Chairman of the
Board all Confidential Information, Work Product and other property of Employer in his possession
or control, including, but not limited to, all records, documents, notes and disks (including
copies), containing, excerpting or relating, in whole or in part, to Confidential Information.



     11. Non-Competition. Allen recognizes that Employer will or has spent substantial
money, time and effort to develop and maintain its relationships with its customers, suppliers and
employees, Employer is paying Allen to, among other things, develop and preserve business
information, methods of doing business and goodwill, and Employer has agreed to employ or continue
employing Allen based on his assurances and promises not to divert or misuse Employer’s
Confidential Information, Work Product or goodwill or to put himself in a position following
employment with Employer in which the confidentiality of Confidential Information or Work Product
might somehow be comprised. Therefore, Allen agrees that while employed by Employer and for twelve
(12) months following termination of that employment, regardless of how, when or why employment may
end, he shall not in any manner or in any capacity, directly or indirectly, for himself or any
other person or entity, actually or attempt:



          A to acquire any interest in, be employed by or otherwise associated or affiliated
with any person or entity which offers any product or service which is competitive with any
product or service offered by Employer or its affiliates, parent companies, subsidiary
companies or related entities;




          B. to solicit, interfere with, divert or take away from Employer any business with
or from any person or entity who/that was a customer or prospective customer of Employer:




               (i) in the case of Allen’s on-going employment,
during all or part of the twelve (12) months immediately preceding any
dispute under this Section 11; and



               (ii) in the case of employment having ended, during
all or part of the twelve (12) months preceding termination of Allen’s
employment.



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A prospective customer shall mean any person/entity who/that, within the relevant period
described in subsection (B)(i) and (ii) above, was in negotiation with Employer or
received a written proposal from Employer; or



     C. to hire or solicit for work any employee of Employer or otherwise to induce
any employee of Employer to leave employment with Employer.



Allen further agrees that if he has any question regarding the scope of activities restricted by
this Section 11, he shall submit the question in writing to Employer’s Board. Allen also agrees to
keep Employer’s Board advised of the identity of any employer (including, without limitation, any
contractors or consulting arrangements), his work location and general responsibilities during the
twelve (12) month post-employment period covered by this Section 11. The provisions of this Section
11 shall not apply to those business relationships set forth on Exhibit A.




     12. Securities. Notwithstanding the terms of Sections 1 and 11 above, nothing in this
Agreement is intended or shall be construed as limiting Allen’s right, as an investor, to hold or
acquire the stock of any business that is registered on a national securities exchange or regularly
traded on a generally recognized over-the-counter market, so long as his interest in any such
business does not exceed five percent (5%) of the ownership of that business.



     13. Remedies. The parties agree that the terms of Sections 7 and 9-11 of this
Agreement are intended and shall be construed not as personal services but as terms governing the
ownership and use of property, including Confidential Information and goodwill. Allen agrees that
the covenants in Sections 7 and 9-11 of this Agreement are reasonable and necessary to protect the
legitimate business interests of Employer, that any violation by Allen of any such covenant would
result in great damage and irreparable injury to Employer, and that his experience, knowledge and
skills are such that enforcement of Sections 7 and 9-11 by way of injunction would not cause him
unreasonable hardship or prevent him from earning a living. Allen further acknowledges and agrees
that if he were to violate the terms of Section 11, the unauthorized disclosure or use of
Confidential Information, goodwill and/or Work Product would be inevitable. Allen, therefore,
agrees that, in the event of actual or threatened violation of any of the covenants in Sections 7
or 9-11 of this Agreement, in addition to whatever other legal and/or equitable remedies allowed by
law, Employer shall be entitled to enforce the terms of this Agreement by way of injunction and/or
specific performance. In addition, Allen and Employer agree that any dispute or controversy arising
between/among them relating to this Agreement shall be brought in the Missouri or federal court
with jurisdiction in the County of St. Louis, State of Missouri (the “Courts”), and that the Courts
shall have exclusive jurisdiction over any such dispute or controversy. Furthermore, each of the
parties hereby voluntarily consents to the jurisdiction of the Courts and stipulates that the
Courts are not an unreasonable forum within which to litigate any dispute or controversy related to
this Agreement. Allen further agrees that if there is any question as to the enforceability of any
of the covenants in Sections 7 or 9-11 of this Agreement, he shall not engage in any conduct
inconsistent with or contrary to any such covenant until after the question has been resolved by a
final judgment of the Courts. In the event Employer has to consult with or retain any attorney to
enforce the terms of this Agreement, Allen agrees that he shall pay Employer for all costs,
expenses and attorneys’ fees Employer incurs in enforcing this Agreement, whether or not litigation
is commenced.



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     14. Binding Effect.




     A. Allen may not sell, assign or transfer this Agreement or any of his rights,
interests or obligations under this Agreement, in whole or in part, by operation of law or
otherwise.




     B. Employer may sell, assign or transfer any of its rights and/or interests under
Sections 7, 9-11 and 13-21 of this Agreement without any additional consent of or notice to
Allen. In such event, said Sections shall remain in full force after such sale, assignment
or other transfer, shall inure to the benefit of and may be enforced by (i) any successor,
assignee, or transferee of all or any part of Employer’s business as fully and completely
as it would inure to the benefit of and it could be enforced by Employer if no such sale,
assignment or transfer had occurred, and (ii) Employer in the case of any sale, assignment
or other transfer of a part, but not all, of the business.




     C. Whether or not Employer assigns any of its rights and/or interests under Sections
7, 9-11 and 13-21 of this Agreement, the parties intend and agree that any successor or
transferee of all or part of Employer’s business shall be a third party beneficiary of the
terms of said Sections. The parties further intend and agree that, in the event of any
sale, merger or other change in the ownership or structure of Employer, in whole or in
part, the resulting entity shall step into the place of Employer under Sections 7, 9-11 and
13-21 of this Agreement, without any additional consent of or notice to Allen, as if the
term “Employer” were defined in this Agreement to include such person/entity. In addition,
the parties agree that, in the event Employer sells, transfers or merges part, but not all,
of its business, the terms of Sections 7, 9-11 and 13-21 shall be enforceable by both
Employer and the successor or transferee of part of Employer’s business. As used herein, a
“successor” or “transferee” includes any person/entity which, at any time, merges with, or
purchases all or substantially all of the stock or assets of Employer.



     15. Severability/Interpretation. The parties acknowledge and agree that the terms of
Sections 7, 9-11 and 13-21 are severable from the remainder of this Agreement and supported by
adequate consideration. In the event any one or more whole or partial provisions of this Agreement
shall be adjudicated to be invalid or unenforceable in any respect, the validity and enforceability
of the remaining whole or partial provisions shall not be affected, and such adjudication shall not
affect the validity or enforceability of such whole or partial provision in any other jurisdiction.
The parties further agree that if any whole or partial restrictive covenant in this Agreement is
deemed invalid or unenforceable because overly broad in geographic scope, activity or time
duration, this Agreement shall be interpreted as if such invalid or unenforceable whole or partial
provision were not contained herein; provided, however, if, under applicable law, such whole or
partial provision may be modified or interpreted so as to be enforceable, that provision shall be
so modified or interpreted so as to be enforceable to the maximum extent permitted by applicable
law.



     16. Preservation of Rights. Allen agrees that termination of his employment with
Employer, regardless of how, when or why employment may end, shall in no manner affect his promises
contained in Sections 7, 9-11 and 13-21 of this Agreement. In order to preserve its rights
hereunder, Employer may advise any third party with whom Allen may consider, establish



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or contract a relationship of the existence of this Agreement and its terms, and Employer shall
have no liability for so acting.




     17. Notice. Any written notice required under this Agreement shall be
deemed given on the date of hand delivery, the calendar day following the day sent by a next day
mail or delivery service, and two (2) calendar days following the date postmarked by U.S. mail, all
postage or delivery charges prepaid. Any such notice shall be given:



	 	 	 

	to Employer, addressed to its Chairman at:

	 	7701 Forsyth Suite 1000.
	 

	 	St. Louis, Mo. 63105
	 
	 	 
	to Allen at:

	 	6100 White Plains Road
	 

	 	White Plains, Kentucky 42464





or such other address as specified in notice given in accordance with the foregoing.




     18. Entire Agreement. This Agreement contains the entire agreement between Allen and
Employer and supersedes any prior oral or written agreement between them pertaining to the subject
matter of this Agreement except for the Overriding Royalty Agreement. Each party warrants that, in
entering into this Agreement, it is not relying on any representation or promise other than those
set forth in this Agreement. This Agreement may be modified only by a writing signed by Allen and
the Chairman of the board.



     19. Waiver of Breach. Failure of either party to exercise any right under this
Agreement, in the event the other party breaches this Agreement, shall not be construed as a waiver
of such breach or prevent the non-breaching party from later enforcing strict compliance with the
terms of this Agreement. Waiver of any right by Employer hereunder must be in writing signed by
Employer’s Chairman of the Board.



     20. Choice of Law. The parties agree that this Agreement shall be governed and
construed in accordance with the laws of the State of Missouri without giving effect to any choice
of law or conflict of law rule or principle that would cause application of the law of a
jurisdiction other than the State of Missouri.



     21. Miscellaneous. The headings of each Section herein are for convenience only and
shall have no significance in the interpretation of this Agreement. This Agreement may be executed
in one or more counterparts, each of which shall be deemed to be an original but all of which
together will constitute but one instrument.



     22. Acknowledgment. Allen acknowledges and agrees that, to the extent desired, he has
discussed this Agreement with the advisors of his choice, he has read, fully understands and
intends to comply with all of the provisions of this Agreement, and he is voluntarily signing it
below.



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



	 	 	 	 	 	 	 

	 	Allen:	 	 	Armstrong Coal Co.
	 
	/s/ Kenneth E. Allen	 	By: 	 /s/ Martin D. Wilson
	Kenneth E. Allen	 	 	Title: 	President






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EXHIBIT A




Excluded Business Activities


Per Section 1 of Employment Agreement dated June 1, 2007, the following is a list of business
relationships allowed to continue under this agreement without violation of said agreement.





		1.	Farming or Agricultural Pursuits
	 
		2.	Passive investor, allowed to hold equity or debt of any business so long as interest
remains passive (i.e., not involved in management or as an officer or director and not in
control of such business.)