Amendment No. 1 to Employment Agreement between William D. Kilgore, Jr., Anker Energy Corporation, and Anker Coal Group, Inc.

Summary

This amendment, effective July 25, 2000, modifies the employment agreement between William D. Kilgore, Jr., Anker Energy Corporation, and Anker Coal Group, Inc. It changes the bonus provision so that if certain financial targets are met—specifically, if equity proceeds exceed $45 million or target EBITDA exceeds $30 million—the executive will receive a $2.5 million bonus. All other terms of the original employment agreement remain unchanged.

EX-10.34.1 2 ex10-34_1.txt AMENDMENT TO KILGORE EMPLOYMENT AGREEMENT 1 EXHIBIT NUMBER 10.34.1 AMENDMENT NO. 1 This Amendment No. 1 ("Amendment No. 1") is entered into as of July 25, 2000 among William D. Kilgore, Jr., an individual ("Executive"), Anker Energy Corporation, a Delaware corporation (the "Company"), and Anker Coal Group, Inc., a Delaware corporation ("ACGI"), for the purpose of amending that certain Employment Agreement dated May 1, 1999 among the parties hereto (the "Employment Agreement"). NOW, THEREFORE, the parties agree to amend the Employment as provided herein. 1. AMENDMENT. Section 3(b)(iii)(C) of the Employment Agreement is ---------- hereby stricken and replaced in full by the following: (C) If the Equity Proceeds are greater than $45,000,000 or the Target EBITDA is greater than $30,000,000, the amount of the Bonus shall be equal to $2,500,000. 2. EFFECT. Except as herein amended, the Employment Agreement shall ------- remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 effective as of the date first above written. ANKER ENERGY CORPORATION By: ----------------------------- Name: Bruce Sparks Title: President -------------------------------- WILLIAM D. KILGORE, JR. -------------------------------- ANKER COAL GROUP, INC. By: ----------------------------- Name: Bruce Sparks Title: President