Document:

EXHIBIT 10.17

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) executed
this 1st day of September, 2006, between CAM
Mining LLC (“Employer”) and Chad
Hunt (“Employee”).

 

W I T N E S
S E T H

 

WHEREAS Employer desires to continue
to employ Employee on the terms hereof, and Employee desires to accept and
continue his employment on such terms; and

 

WHEREAS the parties hereto
acknowledge that this Agreement is to be effective on the date hereof (the “Effective
Date”) and except as specifically provided in this Agreement, supersedes and
replaces any prior terms of employment between Employer and Employee.

 

In
consideration of the mutual covenants herein contained, the parties agree as
follows:

 

1.                                      Terms and Duties.  Commencing as
of the Effective Date and continuing until August 31, 2008, unless sooner
terminated as herein provided or extended by mutual agreement of the parties
(the “Employment Term”), the Employer hereby employs the Employee in his
current capacity or in such other position, or with such other duties, as
Employer may designate during the Employment Term. The Employee agrees to
devote all of his business time and his best efforts to the business of
Employer as may be necessary to perform his duties in accordance with the
policies and budgets established from time to time by Employer. During the
Employment Term, the Employee will not have any other employment.  Employee shall be bound by, and agree to
comply with, all policies, procedures, and employment conditions of Employer in
effect from time to time.

 

2.                                      Compensation.  For Employee’s
services hereunder during the Employment Term, Employee shall pay to Employee a
salary at the rate of $86,220.00 per year, payable periodically 

 

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in accordance with Employer’s
usual executive payroll payment procedures; plus Employee shall participate in
the Employer’s Individual Compensation Plan as set or modified from time to
time by Employer.  In addition, in the
event of (i) a sale by the Employer or CAM Holdings LLC of substantially
all of its assets, unless such transaction results in such assets being owned
or controlled by Wexford Capital LLC and/or its affiliates, either directly or
indirectly, (ii) a sale of the ownership interests in CAM Holdings LLC by
all entities affiliated with Wexford Capital, LLC and constituting more than a
50% interest in CAM Holdings LLC, unless such transaction results in at least
51% of such ownership interests being owned or controlled by Wexford Capital
LLC and/or its affiliates, either directly or indirectly, or (iii) the
completion of a public offering of ownership interests in the Employer, CAM
Holdings LLC or an entity formed to own CAM Holdings LLC (a “Transaction”),
Employee shall, if employed by Employer at the time of the completion of such a
Transaction, be entitled to receive a one-time bonus payment of $100,000.00,
payable within 30 days of completion of a Transaction, subject to any required
withholding.  This bonus shall only be
payable if Employee is not in default of any obligations under this Agreement
and is employed by Employer at such time and if Employee reaffirms in writing
his obligations under the Section 6 of this Agreement at the time of
payment of such bonus.

 

3.                                      Automobile.  Employer shall
provide Employee with the use of a 4-wheel drive vehicle suitable for the
intended duties of the Employee. The cost of the vehicle to be provided shall
be determined by Employer.

 

4.                                      Place of Employment. The Employee’s regular place
of employment during the Employment Term shall be at the Employer’s operations
or offices in Pike or Floyd Counties, Kentucky or at such other location as
reasonably stipulated by Employer.

 

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5.                                      Travel; Expenses.  The Employee shall
engage in such travel as may reasonably be required in connection with the
performance of his duties. All reasonable travel and other expenses incurred by
the Employee (in accordance with the policies and the budget of the Employer
established from time to time) in carrying out his duties hereunder will be
reimbursed by the Employer on presentation to it of expense accounts and
appropriate documentation in accordance with the customary procedures of the
Employer for reimbursement of employee expenses.

 

6.                                      Confidentiality; Competition.

 

(a)                                  The Employer
possesses and will continue to possess confidential information that Employee
may gain access to. For the purposes hereof, all non-public information about
the business and affairs of the Employer (including, without limitation,
business plans, real and personal property leases, financial, engineering and
marketing information and information about costs, mining and processing
methods, suppliers and customers, including such information created by Employee
and confidential information of others obtained by Employer pursuant to
confidentiality agreements) constitute “Employer Confidential Information.”
Employee acknowledges that he will have access to and knowledge of Employer
Confidential Information, and that improper use or disclosure of same by the
Employee during  or after the
Employment Term could cause serious injury to the business of the Employer.
Accordingly, the Employee agrees that he will forever keep secret and inviolate
all Employer Confidential Information which comes into his possession, and that
he will not use the same for his own private benefit, or directly or indirectly
for the benefit of others, and that he will not disclose such Employer
Confidential Information to any other person except as necessary in the proper
pursuance of his duties.

 

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(b)                                 The Employee
agrees that during the Employment Term (and for a period of three (3) months
after Employee’s voluntary resignation or termination with cause) the Employee
will not (whether as an officer, director, partner, proprietor, member,
shareholder, investor, associate, employee, consultant, adviser, public
relations or advertising representative or otherwise), directly or indirectly,
be engaged in the business of coal mining, coal processing, coal loading or
coal marketing within a fifty (50) air mile radius of Pikeville, Kentucky. For
purposes of the preceding sentence, the Employee shall be deemed to be engaged
in any business with any person for whom he shall be an employee, officer,
director, owner, employer, consultant, shareholder, member or partner. During
such period of non-competition and for a period of six (6) months
thereafter, Employee shall not directly or indirectly solicit, interview or
make any decision or recommendation to hire or to retain as a consultant or
advisor or in any other capacity, any current employee of Employer, for
himself, or for or to, any other person or entity.  Employee shall notify any subsequent employer
of Employee of the foregoing agreement

 

(c)                                  The terms of
this Agreement are intended to limit disclosure and competition by the Employee
to the maximum extent permitted by law. If it shall be finally determined by
any court of competent jurisdiction ruling on this Agreement that the scope or
duration of any limitation contained in this paragraph 6 is too extensive to be
legally enforceable, then the parties hereby agree that the scope and duration
(not greater than that provided for herein) of such limitation shall be the
maximum scope and duration which shall be legally enforceable and the Employee
hereby consents to the enforcement of such limitation as so modified.

 

(d)                                 The Employee
acknowledges that any violation by him of the provisions of this paragraph 6
could cause serious and irreparable harm and damage to the Employer. He 

 

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further acknowledges that it
might not be possible to measure such damages in money and that Employer’s
remedy at law for a breach or threatened reach of the provisions of Paragraph 5
would be inadequate. Accordingly, the Employee agrees that, in the event of a
breach or threatened breach by him of the provisions of this paragraph 6, the
Employer may seek, in addition to any other rights or remedies, including money
damages, an injunction or restraining order, restraining the Employee from
doing or continuing to do or perform any acts constituting such breach or
threatened breach. In the event Employer seeks an injunction or restraining
order, Employee and Employer agree that Employer shall not be required to post
a bond to obtain the necessary equitable relief.

 

7.                                      Benefits. The Employer agrees to provide to the Employee the
benefits available to all salaried employees generally and as modified from
time to time.

 

8.                                      Employee’s Representation Regarding Prior and Future Employment.  Employee hereby represents
to the Employer that he has full lawful right and power to enter into this
Agreement and carry out his duties hereunder, and that same will not constitute
a breach of or default under any employment, confidentiality, non-competition
or other agreement by which he may be bound. Further, Employee hereby
represents to the Employer that he is not listed in the Office of Surface Mining’s
Applicant Violator System database. 
Employee further agrees to provide prompt notice to Employer of Employee’s
first subsequent employment after ceasing to be an employee of Employer.

 

9.                                      Termination for Cause, Employment at Will or Voluntary Resignation by
Employee.   If Employee
shall:

 

(a)                                  commit an act
of dishonesty against the Employer or fraud upon the Employer; or

 

(b)                                 breach his
obligations under this Agreement and fail to cure such 

 

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breach
within five (5) days after written notice thereof, or

 

(c)                                  be indicted for
or convicted of a crime involving moral turpitude; or

 

(d)                                 fail or neglect
to diligently perform his duties hereunder and continue in his failure after
written notice;

 

(all such instances being
deemed “for cause” under this Agreement);

 

then, and in any such case,
the Employer may terminate the employment of the Employee “for cause”
hereunder.  In the event of termination
with or without cause or voluntary resignation by Employee, the Employee shall
no longer have any right to any of the benefits (including future salary or
bonus payments) which would otherwise have accrued after such termination.

 

10.                               EMPLOYMENT AT WILL. 
NOTWITHSTANDING THE DEFINITION OF “FOR CAUSE” SET OUT ABOVE, THE EMPLOYER
MAY TERMINATE THE EMPLOYEE’S EMPLOYMENT WITH THE EMPLOYER AT ANY TIME WITH
OR WITHOUT CAUSE AND EMPLOYEE SHALL BE DEEMED AN EMPLOYEE AT WILL

 

11.                               Successors.  The rights, benefits, duties and obligations
under this Agreement shall inure to and be binding upon the Employer, its
successors and assigns and upon the Employee and his legal representatives,
legatees and heirs. It is specifically understood, however, that this Agreement
may not be transferred or assigned by the Employee. The Employer may assign any
of its rights and obligations hereunder to any subsidiary or affiliate of the
Employer, or to a successor or survivor resulting from a merger, consolidation,
sale of assets or stock or other corporate reorganization, on condition that
the assignee shall assume all of the Employer’s obligations hereunder and it is
agreed that such successor or surviving corporation shall continue to be
obligated to perform the provisions of this Agreement.

 

12.                               Waiver of
Breach.  The failure of either party
to insist upon the strict 

 

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performance of any of the
terms, conditions, and provisions of this Agreement shall not be construed as a
waiver or relinquishment of future compliance therewith, and said terms, conditions,
and provisions shall remain in full force and effect. No waiver of any term or
condition of this Agreement on the part of the Employer shall be effective for
any purposes whatsoever unless such waiver is in writing by Employer’s
Chairman.

 

13.                               Amendments.  No amendment or variations
of the terms and conditions of this Agreement shall be made unless the terms of
such amendment are in writing and-duly executed by Employee and Employer’s
Chairman.

 

14.                               Entire
Agreement; Survival.  This
Agreement constitutes the complete and entire agreement governing the terms and
conditions of the employment relationship between the parties and supersedes
any and all prior agreements or understandings. Both Employee and Employer
acknowledge and agree that there are no oral or written understandings
concerning the Employee’s employment by Employer outside of this
Agreement.  The terms of this Agreement
shall survive the termination or expiration of this Agreement and the
conclusion of the Employment Term.

 

15.                               Governing Law.  This Agreement shall be construed and
enforced pursuant to the laws of the Commonwealth of Kentucky, including
matters of law relating to the choice of law. 
Employee hereby consents to the jurisdiction of the courts of the
Commonwealth of Kentucky, including the Pike Circuit Court and hereby waives
any objection to venue of any action brought in said court.

 

16.                               Counterparts.  This Agreement, as executed separately by the
individual parties, shall be deemed to be an original, but all of which together
shall constitute one document.

 

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17.                               Confidential
Terms.  Employee agrees to maintain as
confidential the terms and conditions of this Agreement, provided however
Employee may disclose the terms of this agreement to his legal counsel, and
accountant or tax preparer, or as may be otherwise required by law.

 

18.                               JURY TRIAL
WAIVER.  EMPLOYEE HEREBY VOLUNTARILY AND
IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY WITH REGARD TO ANY ACTION
ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE EMPLOYMENT OF THE
EMPLOYEE BY THE EMPLOYER.

 

IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Agreement as of the day and year first above
written.

 

	
   

  	
  EMPLOYER:

  
	
   

  	
  CAM
  Mining LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry N. Coleman

  
	
   

  	
   

  	
  Terry N. Coleman, Chairman

  
	
   

  	
   

  	
  and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Chad
  Hunt

  
	
   

  	
  Chad Hunt

  

 

8EXHIBIT 10.18

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

This First Amendment to Employment Agreement (“Amendment”)
is made and entered into this 31st day of
October, 2006 between CAM Mining LLC
(“Employer”) and Chad Hunt (“Employee”).

 

RECITALS:

 

A.            Employer and
Employee entered into an Employment Agreement dated September 1, 2006 (the
“Agreement”).

 

B.            The parties now
desire to amend the Agreement only as it pertains to Employee’s salary.

 

Now, Therefore, in consideration of the foregoing, Employer
and Employee hereby agree as follows:

 

1.             Effective November 1,
2006, Employee’s salary shall be increased to $130,000 per year.

 

2.             Except as modified
herein, the Agreement shall remain in full force and effect in accordance with
its terms.

 

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

 

	
   

  	
  CAM
  MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Nicholas R. Glancy

  
	
   

  	
  By:
  Nicholas R. Glancy, President

  
	
   

  	
   

  
	
   

  	
  “Employer”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Chad Hunt

  
	
   

  	
  Chad
  Hunt

  
	
   

  	
   

  
	
   

  	
  “Employee”

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