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                                                                      EXHIBIT 10

National Bituminous Coal
Wage Agreement of 1998

NATIONAL BITUMINOUS COAL
WAGE AGREEMENT OF 1998











TABLE OF CONTENTS
Page
Article I - ENABLING CLAUSE                                              1
Article IA - SCOPE AND COVERAGE                                          3
         Section (a)       Work Jurisdiction                             3
         Section (b)       Exemptions Clause                             4
         Section (c)       Supervisors Shall Not Perform
                    Classified Work                                      5
         Section (d)       Management of the Mines                       5
         Section (e)       Union's Rights                                5
         Section (f)       Application of This Contract to
                    the Employer's Coal Lands                            6
         Section (g)       Contracting and Subcontracting                6
         Section (h)       Leasing, Subleasing and
                    Licensing Out of Coal Lands                          8
         Section (i)       Construction Work                             8
Article II - JOB OPPORTUNITY AND BENEFIT SECURITY (JOBS)                 9
         (A)      Non-Signatory Operations Of The
                    Signatory Employer                                  10
         (B)      Lessee-Licensee                                       13
         (C)      Coordination of Employment Obligations
                    Under the JOBS Program                              17
         (D-1)    Employer-Wide Panel Rights To
                    Signatory Operations                                18
         (D-2)    Exhaustion of Employer Panels                         18
         (D-3)    Monitoring of Job Selections                          18
         (E)      UMWA-BCOA Training and Education
                    Fund                                                21
         (F)      Skills Training                                       24



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         (G)      UMWA-BCOA Labor Management
                    Positive Change Process ("LMPCP")                  26
         (H)      UMWA-BCOA Labor Management
                    Policy Committee                                   36
         (I)      UMWA-BCOA Resolution of Disputes Trust               38
Article III - HEALTH AND SAFETY                                        38
         Section (a)       Right to a Safe Working Place               38
         Section (b)       Federal Mine Safety and Health
                    Act of 1977, As Amended                            39
         Section (c)       Joint Industry Health and
                    Safety Committee                                   39
         Section (d)       Mine Safety and Health
                    Committee                                          40
         Section (e)       Access to the Mine                          43
         Section (f)       Reports                                     44
         Section (g)       Safety Rules and Regulations                45
         Section (h)       Cooperation in Development of
                    Mining Plans                                       46
         Section (i)       Preservation of Individual
                    Safety Rights                                      46
         Section (j)       Physical Examination                        50
         Section (k)       Minimum Age                                 51
         Section (l)       Workers' Compensation and
                    Occupational Disease                               51
         Section (m)       Safety Equipment and Protective
                    Clothing Allowance                                 51
         Section (n)       Maintenance                                 52
         Section (o)       Special Safety Problem Areas                53
         Section (p)       Settlement of Health or Safety
                    Disputes                                           55
Article IV  - WAGES AND HOURS Traditional Schedules                    56
         Section (a)       Basic Work Week                             56
         Section (b)       Basic Work Day                              57
         Section (c)       Alternate Work Schedules                    58
         Section (d)       Lampman                                     59
         Section (e)       Saturday, Sunday and Premium
                    Work                                               59
         Section (f)       Standard Daily Wage Rate                    62
Article V - HELPERS ON FACE EQUIPMENT IN    UNDERGROUND MINES          64
         Section (a)       Assignment of Helpers                       64
         Section (b)       Duties and Responsibilities
                    of Helpers                                         65
         Section (c)       Exemption                                   66
Article VI - SHIFTS AND SHIFT


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DIFFERENTIALS                                                          66
         Section (a)       Multiple Shifts                             66
         Section (b)       Hoisting of Coal                            67
         Section (c)       Shift Differentials                         67
         Section (d)       Working into the Next Shift                 67
         Section (e)       Call-back                                   68
         Section (f)       Shift Rotation                              68
Article VII - MINE COMMUNICATION COMMITTEES                            68
Article VIII - STARTING TIME                                           69
         Section (a)       Shift Starting Time                         69
         Section (b)       Lowering Employees                          70
         Section (c)       Safety and Maintenance                      70
         Section (d)       Surface Facilities                          70
         Section (e)       Changing Crews at the Face                  70
Article IX - ALLOWANCES                                                71
         Section (a)       Bereavement Pay                             71
         Section (b)       Jury Duty                                   71
         Section (c)       Reporting Pay                               71
         Section (d)       Military Duty                               72
         Section (e)       Personal or Sick Leave                      72
         Section (f)       Family and Medical Leave                    75
Article X - WAGE INCREASE                                              78
Article XI - SICKNESS AND ACCIDENT
BENEFITS                                                               79
         Section (a)       General Purpose                             79
         Section (b)       Eligibility                                 79
         Section (c)       Commencement and Duration of
                    Benefits                                           81
         Section (d)       Amount and Payment of Benefits              83
         Section (e)       Filing of Claims for Benefits               84
         Section (f)       Structure and Administration                84
Article XII - HOLIDAYS                                                 87
         Section (a)       Holidays Observed                           87
         Section (b)       Sunday Holidays                             89
         Section (c)       Monday Holidays                             89
         Section (d)       Pay for Holidays Worked                     90
         Section (e)       Pay for Holidays Not Worked                 90
         Section (f)       Holidays During Vacation Period             90
         Section (g)       Birthday Holidays                           90
         Section (h)       Holidays for Sick and Injured               91
         Section (i)       Time of Payment                             91
Article XIII - REGULAR VACATION                                        92
         Section (a)       Annual Vacation                             92
         Section (b)       Dates of Regular Vacation Period            92
         Section (c)       Staggered Regular Vacation                  93



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Section (d)       Qualifying Period and Amount of
                    Payment                                             94
         Section (e)       Floating Vacation Days                       96
         Section (f)       Time of Payment                              99
         Section (g)       Obligation for Payment                       99
         Section (h)       Work During Shutdown                        100
Article XIV - GRADUATED VACATION                                       100
         Section (a)       General                                     100
         Section (b)       Definition of Additional Days               101
         Section (c)       Definition of Continuous
                    Employment                                         101
         Section (d)       Amount of Continuous
                    Employment                                         102
         Section (e)       Time of Payment                             103
         Section (f)       Rate of Payment                             103
         Section (g)       Scheduling and Pay in Lieu                  103
         Section (h)       Sick and Injured Employees                  104
Article XV - CHECKOFF                                                  104
Article XVI - TRAINING                                                 105
         Section (a)       Priority                                    105
         Section (b)       Orientation for New Employees               106
         Section (c)       General Retraining Programs                 110
         Section (d)       Safety Training for Specific Job            113
         Section (e)       Maintenance Training and
                    Rate of Pay                                        113
         Section (f)       New Inexperienced Employees at
                    Underground Mines                                  115
         Section (g)       General Training Provisions                 115
         Section (h)       Skills Enhancement                          116
Article XVII - SENIORITY                                               117
         Section (a)       Definition of Seniority                     117
         Section (b)       Reduction; Realignment                      117
         Section (c)       Layoff Procedure                            121
         Section (d)       Panels                                      122
         Section (e)       Panel Custodians                            122
         Section (f)       Panel Members Accrue Seniority              123
         Section (g)       Right to be Recalled                        123
         Section (h)       Recall of Persons on Layoff Status          123
         Section (i)       Job Bidding                                 125
         Section (j)       Training for Vacancy Not Filled
                    by Bidding                                         130
         Section (k)       Transfer to Other Mines of
                    Employer                                           130
         Section (l)       Leave of Absence                            132
         Section (m)       Permanent and Temporary



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           Supervisors                                                 133
         Section (n)       Shift Preference                            133
Article XVIII - TONNAGE RATES AND HAND LOADING                         133
         Section (a)       Tonnage Rates                               133
         Section (b)       Checkweighman                               134
         Section (c)       Preparation and Cleaning of Coal            135
         Section (d)       Delivery of Cars                            136 
         Section (e)       Explosives                                  137 
         Section (f)       Bottom Coal                                 137 
         Section (g)       Cutting Coal                                137 
         Section (h)       Blacksmithing                               137 
         Section (i)       Rockdusting                                 137 
         Section (j)       Day Men Transferred                         137 
Article XIX - CLASSIFICATION                                           138
         Section (a)       Working in Classification                   138
         Section (b)       Classification Requirement                  138
         Section (c)       Temporary Assignments                       138
         Section (d)       Protection Against Discrimination           139
         Section (e)       Compensation for Temporary
                    Assignments                                        139
Article XX - HEALTH AND RETIREMENT BENEFITS                            139
         Section (a)       General Purpose                             139
         Section (b)       1950 Pension Plan and Trust                 142
         Section (c)       1974 Pension Plan and Trust,
                    1993 Benefit Plan and Trust,
                    and Employer Benefit Plans                         143
         Section (d)       Contributions by Employers                  146
         Section (e)       Responsibilities and Duties
                    of Trustees                                        154
         Section (f)       Audits, Reports and Notices                 156
         Section (g)       Administration of Trusts                    158
         Section (h)       Guarantee of 1950 and 1974 Plans
                    and Trusts                                         160
GENERAL DESCRIPTION OF THE HEALTH AND RETIREMENT BENEFITS              161
         (1)      Pensions for Miners Retired Under the
                    1950 Pension Plan                                  163
         (1A)     1950 Widows' Pension                                 165
         (2)      Pensions for Miners Who Retired Under the
                    1974 Pension Plan Prior to the
                    Effective Date                                     166
         (3)      Pensions for Miners Who Retire On Or
                    After the Effective Date                           169
         (4)      Signatory Service                                    172
         (5)      Pensions for Disabled Miners                         174


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         (6)      Pensions for Surviving Spouses                       175
         (6A)     Pre-retirement Survivor's Pension                    177
         (7)      Deferred Vested or Special Pensions                  178
         (7A)     Pension Bonuses                                      183
         (8)      Life and Accidental Death and
                    Dismemberment Benefits                             183
         (9)      Pensioner's Death Benefits                           185
         (10)     Health Care                                          187
         (11)     Vision Care                                          200
         (12)     Health Care Cost Containment                         200
         (13)     National Health Care                                 202
Article XXA - DENTAL PLAN                                              202
         Section (I)       Definitions                                 203
         Section (II)      Eligibility                                 204
         Section (III)     Benefits                                    206
         Section (IV)      Termination of Coverage                     221
         Section (V)       Schedule of Benefits                        222
Article XXB - UMWA CASH DEFERRED SAVINGS PLAN OF 1988                  238
         Section (a)       General Purpose                             238
         Section (b)       Trust                                       238
         Section (c)       Plan                                        239
         Section (d)       Funding                                     239
         Section (e)       Administration                              239
         Section (f)       Investments                                 242
         Section (g)       Plan and Trust Provisions                   243
Article XXI - SURFACE MINES                                            243
         Section (a)       Parking Areas                               243
         Section (b)       Manning of Surface Mining
                    Equipment                                          244
         Section (c)       Eating Place                                246
         Section (d)       Cabs                                        247
         Section (e)       Special Health and Safety Problems
                    in Surface Mines                                   247
         Section (f)       Toilets                                     249
         Section (g)       Swing Shift                                 249
         Section (h)       Leasing of Employees' Vehicles              249
         Section (i)       Production and Processing of Coal
                    at Surface Mines                                   250
Article XXII - MISCELLANEOUS                                           250
         Section (a)       Bathhouse                                   250
         Section (b)       Access Roads                                251
         Section (c)       Parking Facilities                          251
         Section (d)       Bulletin Boards                             252
         Section (e)       Coke and Cleaning Plants                    252
         Section (f)       Compulsory Retirement                       252



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         Section (g)       House Coal                                  252
         Section (h)       House Rent                                  252
         Section (i)       Attendance Control                          253
         Section (j)       Memorial Periods                            256
         Section (k)       Closing Following Fatal Accident            256
         Section (l)       New Machinery                               256
         Section (m)       Pay Day                                     257
         Section (n)       Lunches                                     258
         Section (o)       Portals                                     258
         Section (p)       Tools                                       258
         Section (q)       Tramming                                    259
         Section (r)       Local Union Meeting Place                   259
         Section (s)       Bonus Plans                                 259
Article XXIII - SETTLEMENT OF DISPUTES                                 261
         Section (a)       Mine Committee                              261
         Section (b)       District Arbitrators                        263
         Section (c)       Grievance Procedure                         265
         Section (d)       Ten Day Limitation                          268
         Section (e)       Earnest Effort to Resolve Disputes          268
         Section (f)       Employee's Right to Presence of
                    Member of Mine Committee                           269
         Section (g)       Right of Grievant to be Present             269
         Section (h)       Finality of Decision or Settlement          269
         Section (i)       Exclusion of Legal Counsel                  269
         Section (j)       Waiver of Time Limits                       270
         Section (k)       Prior Agreement                             270
Article XXIV - DISCHARGE PROCEDURE                                     270
         Section (a)       Just Cause Required                         270
         Section (b)       Procedure                                   271
         Section (c)       Suspension                                  271
         Section (d)       Immediate Arbitration                       272
         Section (e)       Regular Arbitration                         272
         Section (f)       Compensation for Lost Earnings              273
Article XXV - DISCRIMINATION PROHIBITED                                273
Article XXVI - DISTRICT AGREEMENTS                                     273
         Section (a)       New Districts                               273
         Section (b)       Prior Practice and Custom                   274
         Section (c)       Protective Wage Clause                      275
         Section (d)       Approval of District Agreements             275
Article XXVII - MAINTAIN INTEGRITY OF CONTRACT AND RESORT TO COURTS    275
Article XXVIII - SEVERABILITY CLAUSE                                   276
         Section (a)       General Rule                                276
         Section (b)       Exception                                   276


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Article XXIX - RATIFICATION AND TERMINATION OF THIS AGREEMENT               277
Letter Regarding Mediation                                                  279
Letter Regarding Special Permanent Layoff Pension                           280
Memorandum of Understanding Regarding
Job Opportunities                                                           281
         Appendix B - Request for Employment                                292
         Bituminous Coal Operators' Association, Inc.
           Companies for Which BCOA was Authorized to
           Represent for the Negotiation of this Agreement                  294
Pension Tables                                                              295
Appendix A - Part I
         Wage Rates Underground at Deep Mines                               300
Appendix A - Part II
         Wage Rates at Strip and Auger Mines                                302
Appendix A - Part III
         Wage Rates at Preparation Plants and Other Surface
           Facilities for Deep or Surface Mines                             304
Appendix B - Part I
         Job Classifications Underground at Deep Mines                      306
Appendix B - Part II
         Job Classifications at Strip and Auger Mines                       313
Appendix B - Part III
         Job Classifications at Preparation Plants and Other
           Surface Facilities for Deep or Surface Mines                     318
Appendix C
         Alternative Schedules                                              326
Index                                                                       343



NATIONAL BITUMINOUS COAL WAGE AGREEMENT OF 1998 
Article I-ENABLING CLAUSE 
THIS AGREEMENT, made this 1st day of January, 1998 between the coal operators
and associations signatory hereto, as parties of the first part (each coal
operator which is a signatory hereto being called "Employer") and the
International Union, United Mine Workers of America (hereinafter called
"Union"), on behalf of each member thereof, as party of the second part, covers
all of the bituminous coal mines described in Article IA, Section (f), owned or
operated by said first parties. This Agreement carries forward and preserves the
terms and conditions of all the various District agreements executed between the
United Mine Workers of America and the various operators and coal associations
subject to the terms and conditions of this Agreement and as amended, modified
and supplemented by this Agreement as herein set out. 
This Agreement shall be binding upon all signatories hereto, including  those
Employers which are members of signatory associations, and their successors and
assigns. In


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consideration of the Union's execution of this Agreement, each Employer promises
that its operations covered by this Agreement shall not be sold, conveyed, or
otherwise transferred or assigned to any successor without first securing the
agreement of the successor to assume the Employer's obligations under this
Agreement. Immediately upon the conclusion of such sale, conveyance, assignment
or transfer of its operations, the Employer shall notify the Union of the
transaction. Such notification shall be by certified mail to the
Secretary-Treasurer of the International Union and shall be accompanied by
documentation that the successor obligation has been satisfied. Provided that
the Employer shall not be a guarantor or be held liable for any breach by the
successor or assignee of its obligations, and the UMWA will look exclusively to
the successor or assignee for compliance with the terms of this Agreement.

WITNESSETH: It is agreed that this contract is for the exclusive joint use and
benefit of the contracting parties, as defined and set forth in this Agreement.
It is agreed that at operations covered by this Agreement the United Mine
Workers of America is recognized herein as the exclusive bargaining agency
representing the Employees of the parties of the first part. It is further
agreed that as a condition of employment all Employees at operations covered by
this Agreement shall be, or become, members of the United Mine Workers of
America, to the extent and in the manner permitted by law, except in those
exempted classifications of employment as hereinafter provided in this
Agreement. This provision does not change the rules or practices of the industry
pertaining to management. The Mine Workers intend no intrusion upon the rights
of management as heretofore practiced and understood. It is the intent and
purpose of the parties hereto that this Agreement will promote and improve
industrial and economic relationships in the bituminous coal industry and to set
forth herein the basic agreements covering rates of pay, hours of work and
conditions of employment to be observed between the parties, and shall cover the
employment of persons employed in the bituminous coal mines covered by this
Agreement. Management will not abridge the rights of the Employees as set forth
in this Agreement.
Article IA-SCOPE AND COVERAGE
Section (a) Work Jurisdiction
The production of coal, including removal of overburden and coal waste,
preparation, processing and cleaning of coal and transportation of coal (except
by waterway or rail not owned by Employer), repair and maintenance work normally
performed at the mine site or at a central shop of the Employer and maintenance
of gob piles and mine roads, and work of the type customarily related to all of
the above shall be performed by classified Employees of the Employer covered by
and in accordance with the terms of this Agreement. Contracting, subcontracting,
leasing and subleasing, and construction work, as defined herein, will be
conducted in accordance with the provisions of this Article. Nothing in this
section will be construed to diminish the jurisdiction, express or implied, of
the United Mine Workers. 
Section (b) Exemptions Clause
It is the intention of this Agreement to reserve to the Employers and
except from this Agreement an adequate force of supervisory employees to
effectively conduct the safe and efficient operation of the mines and at the
same time, to provide against the abuse of


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such exemptions by excepting more such employees than are reasonably required
for that purpose.
Coal inspectors and weigh bosses at mines where men are paid by the ton,
watchmen, clerks, engineering and technical forces of the Employer, working at
or from a district or local mine office, are exempt from this Agreement.
All other Employees working in or about the mine shall be included in this
Agreement except essential supervisors in fact such as mine foremen, assistant
mine foremen who, in the usual performance of their duties, may make
examinations for gas as prescribed by law, and such other supervisors as are in
charge of any class of labor inside or outside the mines and who perform no
production work. 
The Union will not seek to organize or ask recognition for such excepted
supervisory employees during the life of this contract. The Employers shall not
use this provision to exempt from the provisions of this Agreement as
supervisors, more men than are necessary for the safe and efficient operation
of the mine, taking into consideration the area covered by the workings, roof
conditions, drainage conditions, explosion hazards, and the ability of
supervisors, due to thickness of the seam, to make the essential number of
visits to the working faces as required by law and safety regulations.
Section (c) Supervisors Shall Not Perform
Classified Work
Supervisory employees shall perform no classified work covered by this Agreement
except in emergencies and except if such work is necessary for the purpose of
training or instructing classified Employees. When a dispute arises under this
section, it shall be adjudicated through the grievance machinery and in such
proceedings the following rule will apply: the burden is on the Employer to
prove that classified work has not been performed by supervisory personnel.
Section (d) Management of the Mines
The management of the mine, the direction of the working force and the right to
hire and discharge are vested exclusively in the Employer.
Section (e) Union's Rights
Authorized representatives of the Union shall be permitted reasonable access to
the mine property to insure compliance with this Agreement. The Employer shall
provide candidates for Union office reasonable opportunity to campaign among his
Employees during their nonworking hours and in nonworking areas, provided there
is no interference with production. The Employer further agrees to provide, to
the extent practicable, space on mine property for the holding of Union
elections and the ratification of collective bargaining agreements.
Section (f) Application of This Contract to the Employer's Coal Lands
As part of the consideration for this Agreement, the Employers agree that this
Agreement covers the operation of all the coal lands, coal producing and coal
preparation facilities owned or held under lease by them, or any of them, or by
any subsidiary or affiliate at the date of this Agreement, or acquired during
its term which may hereafter (during the term of this Agreement) be put into
production or use. This section will immediately apply to any new operations
upon the Union's recognition, certification, or otherwise properly obtaining
bargaining rights. Notwithstanding the foregoing, the terms of this Agreement


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shall be applied without evidence of Union representation of the Employees
involved to any relocation of an operation already covered by the terms of this
Agreement. 
Section (g) Contracting and Subcontracting
(1) Transportation of Coal-The transportation of coal as defined in paragraph
(a) may be contracted out under the Agreement only where contracting out such
work is consistent with the prior practice and custom of the Employer at the
mine; provided that such work shall not be contracted out at any time when any
Employees at the mine who customarily perform such work are laid off.
(2) Repair and Maintenance Work-Repair and maintenance work of the type
customarily performed by classified Employees at the mine or central shop shall
not be contracted out except (a) where the work is being performed by a
manufacturer or supplier under warranty, in which case, upon written request on
a job-by-job basis, the Employer will provide to the Chairman of the Mine
Committee a copy of the applicable warranty or, if such copy is not reasonably
available, written evidence from a manufacturer or a supplier that the work is
being performed pursuant to warranty; or (b) where the Employer does not have
available equipment or regular Employees (including laid-off Employees at the
mine or central shop) with necessary skills available to perform the work at
the mine or central shop.
(3) The Employer may not contract out the rough grading in mine reclamation.
(4) Where contracting out is permitted under this section, prior custom and
practice shall not be construed to limit in any way the Employer's choice of
contractors. 
Section (h) Leasing, Subleasing and Licensing 
Out of Coal Lands 
(1) The Employers agree that they will not lease, sublease or license out any
coal lands, coal producing or coal preparation facilities where the purpose
thereof is to avoid the application of this Agreement or any section, paragraph
or clause thereof. Licensing out of coal mining operations on coal lands owned
or held under lease or sublease by any signatory operator hereto shall not be
permitted unless the licensing out does not cause or result in the layoff of
Employees of the Employer. 
(2)-(7) These sections have been incorporated into the JOBS Program, Article
II, Section (B). 
Section (i) Construction Work 
All construction of mine or mine related facilities including the erection of
mine tipples and sinking of mine shafts or slopes customarily performed by
classified Employees of the Employer normally performing construction work in
or about the mine in accordance with prior practice and custom, shall not be
contracted out at any time unless all   such Employees with necessary skills to
perform the work are working no less than 5 days per week, or its equivalent
for Employees working on alternative schedules. Provided further that where
contracting out of such construction work customarily performed by classified
Employees at the mine is permitted under this Agreement, such contracting shall
be in accordance with prior practice and custom. Where contracting out is
permitted under this section, prior practice and custom shall not be construed
to limit the Employer's choice of contractors. 
Article II JOB OPPORTUNITY AND BENEFIT SECURITY (JOBS)


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The parties hereto recognize and agree that the production of bituminous coal
involves, by its very nature, the depletion of resources at work locations. The
parties agree further that varied mining arrangements and technological advances
can adversely impact on job security and that their mutual goals of mining coal
safely and efficiently can best be achieved by the use of experienced miners who
are knowledgeable of the Employer's standards of operation.
As a result of the special nature of the bituminous coal mining industry and the
parties'  desire to develop a relationship in which the Employees as well as the
Employers gain from a growth in productivity, the parties agree to establish the
Job  Opportunity  and  Benefit  Security  (JOBS)  Program.  The JOBS  Program is
designed to achieve,  to the fullest  extent  allowed by law,  job  security for
classified   employees   through   extended   panel   rights  and  new  training
opportunities.  Nothing in the JOBS  Program  shall be construed to diminish any
rights of the Employees or the Union  established in any other provision of this
Agreement including, but not limited to, the successorship clause, Article IA(h)
and Article XVII.

A. Non-Signatory Operations Of The Signatory Employer
1. Except as modified in Section C, the first three out of every five new job
openings for work of a nature covered by this Agreement at any existing, new, or
newly acquired non-signatory bituminous coal operation of the Employer shall be
filled by classified laid-off Employees on the panels of the Employer's
operations covered by this Agreement, or by classified active Employees of the
Employer who have provided notice indicating their interest in such job
openings. It shall be the obligation of the signatory Employer to provide
reasonable notice to its classified active Employees of the operations at which
such job openings may be available. If the newly acquired or non-signatory
operation has a panel of laid-off employees established pursuant to a valid
collective bargaining agreement, those individuals shall first be recalled
before this section applies.
2. Selection of employees for the above three out of every five new job openings
shall be made from the senior Employee among the classified laid-off Employees
on the Employer's panels and classified active Employees of the Employer who
have notified the Employer in writing of their interest in and qualifications
for any such job openings at the specific operation involved, provided that such
classified laid-off and active Employees have the ability to step into and
perform the work of the job at the time the job is filled. For classified
laid-off Employees, the order of selection of Article XVII shall also apply:
selecting first from Employees on the panels of the Employer's operations
covered by this Agreement within the district where the non-signatory operation
is located, next from Employees on the panels of the Employer's operations
covered by this Agreement within contiguous districts, and then from Employees
on the panels of the Employer's operations covered by this Agreement within
non-contiguous districts. For classified active Employees, the order of
selection shall be: selecting first from active Employees of the Employer's
operations covered by this Agreement within the district where the non-signatory
operation is located, next from active Employees of the Employer's operations
covered by this Agreement within contiguous districts, and then from active
Employees of the Employer's operations covered by this Agreement within
non-contiguous districts. The Employer shall not be required to make more than
one offer of employment per operation to each such classified laid-off or active


<PAGE>   13


Employee, provided (i) that for classified laid-off Employees on the Employer's
panels the offer is for work of the type listed on his panel form and the
Employee refuses or fails to respond to that offer or report for the job, and
(ii) that for classified active Employees of the Employer the offer is for work
of the type listed in the Employee's written notification of interest to the
Employer for the job opening in question and the Employee refuses or fails to
respond to that offer or report for the job. The Employer may also consider its
classified laid-off Employees on its panels, and classified active Employees who
have notified the Employer in writing of their interest in any such job openings
at the specific operation involved, for the last two out of every five job
openings, which are to be selected at the Employer's sole discretion.
3. The filling of a position by an active employee at a non-signatory operation
as the result of his reassignment from one position at that operation to another
position at that same operation does not constitute the filling of a new job
opening for purposes of this section.
4. Offers of employment made to classified laid-off Employees on the Employer's
panels pursuant to this section, shall be made without regard to the listing of
that particular operation on the Employee's panel form.
5. Acceptance or rejection of an offer of employment under this section or any
personnel action at the non-signatory operation shall not affect such Employee's
other panel rights with the Employer as established by this Agreement.
6. Any disputes that arise under this Section shall be resolved exclusively
pursuant to the procedures set forth under Section D-3 of this Article and are
not subject to resolution under Article XXIII - Settlement of Disputes.
7. Nothing in this section shall operate to extend the bargaining unit as of the
date of this Agreement nor expand the rights of the Union with regard to the
non-signatory operations, except for the job opportunities made available under
this section.
8. Section A shall become effective immediately upon the effective date of this
Agreement. No Employer shall be required to terminate or lay off any employee on
its active payroll at said operations as of that date in order to comply with
the foregoing hiring obligations. For purposes of complying with the foregoing,
all hiring for jobs of a nature covered by this Agreement after the effective
date shall be made in accordance with this section. Furthermore, except as
modified by Section C, if the Employer has an existing UMWA panel obligation or
other collective bargaining obligation at the operation, it shall first
recognize such obligation.
B. Lessee-Licensee
1. For purposes of lawfully preserving and protecting job opportunities for the
Employees covered by this Agreement, the Employer further agrees that it will
not lease, sublease, or license out any bituminous coal lands, bituminous coal
mining operations and other facilities of the Employer unless the conditions set
forth in the following paragraphs are satisfied. 
2. Leasing, subleasing, or licensing out of such lands or operations shall be
permitted where the lessee-licensee agrees in writing that all offers of
employment by such lessee-licensee shall first be made to the Employer's
classified laid-off Employees on the Employer's panels of the Employer's
operations covered by this Agreement, if such


<PAGE>   14


employment at the leased, subleased or licensed out location is for jobs of the
nature covered by this Agreement, and if such Employees are qualified for such
jobs.
3. Selection of employees for these offers of employment shall be made from the
senior Employee among the classified laid-off Employees on the Employer's
panels, who has the ability to step into and perform the work of the job at the
time the job is filled. The order of selection of Article XVII also shall apply:
selecting first from Employees on the panels of the Employer's operations
covered by this Agreement within the district where the lessee-licensee's
operation is located, next from Employees on the panels of the Employer's
operations covered by this Agreement from districts contiguous to the district
where the lessee-licensee's operation is located, and then from Employees on the
panels of the Employer's operations covered by this Agreement within
non-contiguous districts. The lessee-licensee shall not be required to make more
than one such offer of employment per operation to each such Employee, provided
that offer is for work of the type listed on his panel form and the Employee
refuses or fails to respond to that offer or report for the job.
4. Acceptance or rejection of such an offer of employment made by a lessee-
licensee or any personnel action between the Employee and lessee-licensee shall
not affect such Employee's panel rights with the Employer as established by this
Agreement.
5. Any disputes regarding this section shall be resolved between the prior
Employer and the Employee under Section D-3 of this Article. The Employer agrees
that it will reserve in any lease, sublease or license subject to this section
the ability of the Employer to remedy any finding as to noncompliance of an
Employee's right to be considered for employment opportunity as provided herein.
If it chooses in its discretion to permit a sublease or sublicense, the Employer
shall also require the lessee-licensee to convey this hiring obligation in any
sublease or sublicense.
6. The prior Employer shall not be a guarantor or be held liable for any breach
of the lessee-licensee of its hiring or bargaining obligations or the terms of
any agreement between the Union and the lessee-licensee.
7. Within ten (10) days after the lease, sublease or licensing out of any
bituminous coal lands, coal mining operations and/or other facilities, but in
any event prior to the time that work of a nature covered by this Agreement
commences, the Employer shall provide notice thereof to the appropriate District
President. Such notice shall disclose the identity of all parties to the
transaction and the location and identity of the bituminous coal lands,
operations and/or other facilities affected thereby including the relevant MSHA
legal I.D. number.
8. The Union agrees that this section, or its implementation, in no manner
extends the bargaining unit of the Employer and does not create a joint
employer, single employer, alter ego, agency relationship or successor
relationship between the Employer and the lessee-licensee, which does not
otherwise exist without reference to this section or its implementation.
9. Section B shall become effective immediately upon the effective date of this
Agreement. For purposes of complying with this section, all hiring by any
lessee-licensee for work of a nature covered by this Agreement after the
effective date shall comply with this section. However, no lessee-licensee
operating on the Employer's bituminous coal lands as of the effective date of
this Agreement (hereinafter, the "current lessee-

<PAGE>   15


licensee") shall be required to terminate or lay off any employee on its active
payroll at such locations as of that date in order to comply with the foregoing
hiring obligation. Furthermore, a current lessee-licensee shall not be required
to comply with the foregoing hiring obligations at those locations until 90 days
after the effective date of this Agreement, except if the lease, sublease or
license under which the current lessee-licensee is conducting those operation(s)
expires, terminates or is extended with the Employer prior to the 90 day
deadline or except if such lease, sublease or license involves a former
signatory operation of the Employer. In the case of these two latter exceptions,
the foregoing hiring obligations shall become effective immediately.
10. In the event the current lessee-licensee has an existing UMWA panel
obligation or other collective bargaining obligation at any location on the
Employer's bituminous coal lands, it shall first recognize such obligation
except when its new operation was at any time a signatory operation of the
Employer, in which case the Employer's laid-off Employees must be given the
first offers of employment as provided in Section B(2) and (3) above before any
other individual is employed in work of a classified nature.
11. Within thirty (30) days of the effective date of this Agreement, the
Employer shall provide to the appropriate District President(s) a list of its
lessee-licensees as of the effective date of the Agreement, with the same
information as set forth in Section B(7).
C. Coordination Of Employment Obligations Under the JOBS Program 
At those locations where the Employer hereto is the lessee-licensee of another
employer which is also party to the obligations of Article II, the Employer
hereto shall first honor the hiring obligations to which it should be bound as 
a result of lessor-licensor's agreement with the Union. Thereafter, and at all 
other locations covered by this Article, the Employer hereto shall follow the 
requirements of Sections A and B above.
D-1. Employer-Wide Panel Rights To Signatory Operations
Each Employer also agrees to extend employer-wide panel rights to its signatory
operations pursuant to Article XVII. Accordingly, within forty-five (45) days of
the effective date of this Agreement, a laid-off employee may revise his panel
form for any purpose, in addition to his annual right of revision under Article
XVII(d).
D-2. Exhaustion Of Employer Panel
Upon the Employer's notification to the Union that its panels have been
exhausted and that it has no laid-off panel members or active miners who have
provided notice indicating an interest in filling new job openings for work of a
classified nature, the Union may provide the Employer with a list of qualified
miners for hiring consideration. The Employer may consider but is under no
obligation to hire any of the miners on the list provided by the Union.
D-3. Monitoring Of Job Selections
In order to effectuate the implementation of these job opportunity provisions,
BCOA and the International Union shall jointly select, within thirty (30) days
following the Effective Date of this Agreement, an impartial Jobs Monitor to
monitor the job selections pursuant to this Article, and to investigate any
alleged violations herein. The monitor shall have the authority to request such
information which may be reasonably necessary in order to secure compliance with
the job selection provisions. The parties have the obligation to comply with
such requests. In that regard, the monitor shall be provided, on a regular basis
at the end of each calendar quarter, with reports of all jobs filled pursuant to
the job


<PAGE>   16


opportunity provisions. The report shall state the name of the mine, its
location, the total number of jobs of a classified nature filled and the names
and number of persons selected for jobs pursuant to this Article from among
either active Employees or laid-off miners. The report shall be treated as
confidential; however, at the monitor's discretion, the report may be provided
to the UMWA. The monitor shall also be provided with a 60-day notice prior to
the start-up of production at any new operation covered by this Article. A copy
of this 60-day notice shall also be sent to the Secretary-Treasurer of the UMWA.
The 60-day notice shall state the name of the operation, location, approximate
start-up date, and projected number of jobs of a classified nature available.
Any dispute alleging a breach of the foregoing job opportunity provisions of
Article II must be presented to the Employer in writing by the Local Union. This
written charge shall concisely explain the basis for the dispute. Upon receiving
a written charge, the Employer representative shall provide information to the
Local Union in response to the charge. The Employer and the Local Union shall
mutually attempt to resolve the dispute. If the dispute is not resolved by the
Employer and the Local Union within thirty (30) days, it shall be referred to
the District and the Employer representative who will attempt to resolve it. If
unresolved, the District may submit the written charge to the Jobs Monitor for
resolution of the dispute. The Jobs Monitor shall have the authority to reach a
decision on written submissions. The Jobs Monitor shall also have the authority
to conduct a hearing (formal or informal), request position statements, issue
subpoenas for witnesses and documents, request additional information or briefs,
and take any such steps as may be reasonably necessary to investigate and
resolve the dispute. If the Jobs Monitor is unable to reach a decision within
thirty (30) days of the close of the hearing (or the close of the record if no
hearing is conducted), the Jobs Monitor shall promptly advise the parties of the
reasons for the delay and the date when a decision will be issued. Any decision
rendered by the Jobs Monitor shall be in writing and shall be final and binding
on all parties to that decision. The Jobs Monitor shall not have authority to
alter, amend, modify, add to or subtract from, or change in any way the
provisions of this Article. All expenses and fees incurred by the Jobs Monitor
in the resolution of disputes pursuant to this Article shall be borne equally by
the District and the applicable signatory Employer. 
E. UMWA-BCOA Training and Education Fund 
Section 1. Establishment
The parties hereto recognize that unemployment currently exists in the various  
coalfields and that unemployment places burdens on UMWA miners, their families
and communities. To lessen those burdens and to aid them in acquiring gainful
employment, the parties hereby establish the UMWA-BCOA Training and Education
Fund.
Section 2. Purpose
The UMWA-BCOA Training and Education Fund is established to provide financial
assistance for training or education to unemployed UMWA miners, who have
performed classified work under the National Bituminous Coal Wage Agreement of
1998 or any predecessor agreement thereto, and/or their family dependents and/or
the family dependents of active classified Employees of signatory Employers, so
long as such persons are seeking employment opportunities in the coal industry,
in coal-related industries or in any other vocation, trade or employment
opportunity of the applicant's


<PAGE>   17

choosing. The decision to make an assistance grant to an eligible applicant, the
form of the grant and the amount of each assistance grant shall be determined by
the Fund's Trustees at their sole discretion. Grants may be renewed annually
according to rules adopted by the Fund's Trustees.
Section 3. Administration
The UMWA-BCOA Training and Education Fund shall be jointly administered by two
Trustees, one of whom shall be appointed by the UMWA and one of whom shall be
appointed by the BCOA. The Trustees shall be responsible for adopting all
necessary rules for the distribution of training and education monies,
establishing separate accounts, accounting for all monies owed to or received by
the Fund, providing a full accounting of the Fund's monies in May and November
of each year to the Presidents of the UMWA and BCOA and all other action
necessary for the proper and efficient operation of the Fund. The salaries and
expenses of the Trustees and all administrative costs shall be the
responsibility of the Fund. The parties intend that maximum funds be used for
training and education purposes. The UMWA will supply, at no cost to the Fund,
office space for the administration of the Fund. Nothing herein shall preclude
receipt of monies from other sources for purposes consistent with the Fund.
Section 4. Funding 
(a) Each signatory Employer shall contribute to the Fund referred to in this
Article 13.0(cent) per hour actually worked by each of the Employer's Employees
who perform classified work as defined by this Agreement in the first two years
of this Agreement and 14.0(cent) per hour actually worked commencing in the
third year of this Agreement and continuing through the term of the Agreement.
(b) The obligation to make payments to the Fund specified in this Article shall
become effective on the Effective Date of this Agreement, and the first payments
are to be made on the 10th day of February 1998 (which will include payment from
the Effective Date through the end of January 1998) and thereafter continuously
on the 10th day of each succeeding calendar month.
(c) It shall be the duty of each of the Employers signatory hereto to keep
current said payments due to the Fund and to furnish to the International Union,
United Mine Workers of America, and to the Trustees of the Fund, a monthly
statement showing on a mine-by-mine basis, the full amounts due hereunder and
the hours worked with respect to which the amounts are payable. Payments to the
Fund shall be made by check payable to the "UMWA-BCOA Training and Education
Fund."
(d) Payments shall be delivered or mailed to such location as designated by the
Trustees of the Fund.
(e) Failure of any Employer signatory hereto to make full and prompt payments to
the Fund specified in this Article in the manner and on the dates herein
provided shall be deemed a violation of the Agreement. This obligation of each
Employer signatory hereto, which is several and not joint, to so pay such sums
shall be a direct and continuing obligation of said Employer and it shall be
deemed a violation of this Agreement, if any mine, preparation plant or other
facility to which this Agreement is applicable shall be sold, leased, subleased,
assigned or otherwise disposed of for the purpose of avoiding any of the
obligations hereunder.


<PAGE>   18


(f) Each Employer agrees to give proper notice to the President of the
appropriate local union by the 18th day of each month that the Employer has made
the required payment to the Fund for the previous month, as required by this
Article, or is delinquent in such payment, such notice to set forth the amount
paid to the Fund, or the amount of delinquency and the hours worked with respect
to the mine or mines under the jurisdiction of such local union. 
F. Skills Training
Section 1. General
The parties recognize that technological changes are now occurring and may
continue to occur in the coal industry. These technological changes may require
new employee skills or the refinement of existing employee skills in order for
operations covered by this Agreement to be safe and efficient. To keep pace with
these technological changes, as required by the Employer, and to develop and
increase the skills of the classified work force and to enhance job security the
parties establish the UMWA-Employer Skills Training Program.
Section 2. Purpose
As a demonstrated need arises at a mine or facility covered by this Agreement,
the Employer shall establish for such mine or facility a Skills Training
Program. The Skills Training Program would be established to increase the
efficiency of certain active classified Employees by enhancing or modifying
existing skills or by developing the new skills necessary regarding new
machinery or other equipment used in the course of the operation which has been
modified or improved by technology or has not before been utilized at the mine
or facility. Neither the program nor its implementation is in any way intended
to expand or diminish any work jurisdiction express or implied under the
Agreement. Neither will the program limit or restrict in any way any rights of
the Employer or the Union under this Agreement.
Section 3. Skills Training Program
When new technology or improvements to existing technology are introduced at any
operation covered by this Agreement and new skills are needed to utilize such
new technology or improvements, the Employer shall provide the appropriate
active classified Employees whom it deems necessary with the skills training
necessary for the safe and efficient operation of the component, machine or
equipment introduced. The skills training may be performed at the manufacturer's
facility, at the Employer's training facility, on the job, or at any other site
appropriate for such training. Each training program shall emphasize health and
safety in addition to the other requirements of the job. Appropriate local and
district officials of the Union shall have the opportunity to review each
training program and make comments and suggestions. Employees shall be paid at
their regular straight time classified rate for all time spent in skills
training in accordance with the provisions of this Section, except when the
overtime rate is required by statute. In those cases where travel away from the
work place or overnight stay is required for the skill training the Employer and
the Local Union shall meet and establish the amount and the manner in which
expenses will be provided Employees for lodging and travel associated with the
Training Program. 
G. UMWA-BCOA Labor Management Positive Change Process ("LMPCP")
Section 1. Establishment and Purpose


<PAGE>   19


The parties recognize that, just as the coal industry has changed, and continues
to change, so too must a new and different relationship be fostered between
labor and management. The parties recognize that the Union's goal of increased
job and employment opportunity and security for its members goes hand-in-hand
with, and indeed depends upon, the increased and continuous competitiveness and
financial stability of the Employers. It is further recognized that the mutual
objectives of the parties can best be attained by a joint commitment of
continuous improvement to working relationships, productivity, health, safety,
training, education, and investment in technology and, most importantly, human
resources. In this light, the parties must discard old ways of dealing with each
other in an atmosphere of mistrust, and foster a new environment of mutual trust
and a good faith acceptance of their respective institutions. For, in truth, the
parties have a major responsibility to the same resource: the Union, to its
members, and the Employers, to their Employees.
In order to achieve these objectives, the parties recognize the need for new and
creative approaches to labor-management relations, to the increasing involvement
of Employees in the success of mining operations, and for changes to be made at
the mine sites to allow the Employers to better compete in today's global
marketplace. Accordingly, to promote joint efforts addressing those needs, and
to enhance existing efforts to improve labor-management cooperation, the parties
hereby establish the UMWA-BCOA Labor Management Positive Change Process (LMPCP).
The LMPCP shall be used to support the following objectives:
(a) To develop and implement more cooperative working relationships through the
exercise of a leadership role by both representatives of mine management and
elected local union officials;
(b) To develop a working relationship based on honesty, integrity, and mutual
trust;
(c) To work to increase respect for the dignity of all individuals covered by
the Agreement;
(d) To reinforce the shared belief that an ongoing partnership between labor and
management is essential to the long-term success and growth of the industry;
(e) To explore additional ways and means to continuously improve productivity,
efficiency, and competitiveness;
(f) To promote the development of Employee job skills so as to enhance greater
job security and increased productivity and efficiency to meet the competitive
challenges of today's global market economy;
(g) To enhance positive working relationships among all Employees at every level
of the Employer's operation;
(h) To further encourage and allow Employees to utilize individual
responsibility, skills, and ideas to perform their work safely, efficiently and
with pride;
(i) To augment the ability of the operation to meet or exceed customer
requirements;
(j) To further develop mutually acceptable (agreement between local union and
local management) ways to reduce the number of job grades and job titles set
forth in Appendices A and B of this Agreement, and to further develop mutually
acceptable alternative schedules and continuous operations in addition to those
set forth in this Agreement; and


<PAGE>   20


(k) To explore non-adversarial processes, including mediation, for settling
disputes at the mine.
Section 2. Creation of LMPCP Committees
An "LMPCP Committee" at Eligible Facilities will be comprised of the three (3)
members of the Mine Communication Committee and three (3) local management
representatives, one of whom shall be the Superintendent.
Section 3. Committee Meetings 
Employee members of an LMPCP Committee will be compensated by the Employer for
time spent in LMPCP meetings at the operation at their applicable               
straight time rate. Any other Employee who is invited by the entire LMPCP
Committee to attend a Committee meeting will be compensated by the Employer for
time spent in LMPCP meetings at the operation at his applicable straight time
rate. 
Section 4. Creation of UMWA-BCOA LMPCP Fund 
The UMWA-BCOA LMPCP Fund is hereby established to promote and support LMPCP
Programs at Eligible Facilities, and to pay the expenses of the Chairman of the
Labor-Management Policy Committee, as required under Part H of this Article.
Each signatory Employer shall designate, after consultation with the
International Union, a minimum of ten percent of its operations that are
covered by this Agreement as Eligible Facilities for purposes of this Article
II.G. If a signatory Employer has less than ten but more than three operations,
it shall designate at least one operation as an Eligible Facility. If a
signatory Employer has less than four operations, it shall have no obligation
to designate an operation as an Eligible Facility, but may do so if it so
chooses. Each Employer and each Local Union at an Eligible Facility shall
establish an LMPCP Program to achieve the purposes and objectives set forth in
Section 1, including but not limited to addressing issues previously subject to
prior practice and custom at the Eligible Facility. The Employer and the Local
Union shall be responsible for assuring that the LMPCP Pgram meets all
requirements for financial or other support from the UMWA-BCOA LMPCP Fund. 
Section 5. Fund Administration                                       
The UMWA-BCOA LMPCP Fund shall be jointly administered by two (2) Trustees, one
(1) of whom shall be appointed byco the UMWA, and one (1) of whom shall be
appointed by the BCOA. The Agreement and Declaration of Trust establishing the
UMWA-BCOA LMPCP Fund is incorporated by reference and made a part of this
Agreement. The Trustees shall be responsible for adopting all necessary rules
for the distribution of funds to promote and support LMPCP Programs at Eligible
Facilities. The decision to     provide financial or other support to an LMPCP
Program, and the form and amount of such support, shall be determined by the
Fund's Trustees at their sole discretion subject to the limitations contained
in Sections 8, 9 and 10 below. The Trustees shall monitor the effectiveness of
LMPCP Programs and jointly disseminate information on the Programs to the LMPCP
Committees. The Trustees shall by unanimous agreement appoint an Executive
Director who will report to the Trustees and by unanimous agreement appoint
other support staff as the Trustees deem necessary. 
Section 6. Contributions to the Fund 
(a) Subject to the provisions of subsection (c) of this Section, each   
signatory Employer shall contribute to the LMPCP Fund 2.0(cent) per hour
actually worked by each of the


<PAGE>   21


Employer's Employees who perform classified work as defined by this Agreement.
Contributions shall be required only during the term of this Agreement and only
as provided under subsection (c), and the rate of contributions shall not for
any reason exceed 2.0(cent) per hour. 
(b) The obligation to make payments to the LMPCP Fund shall begin on the
Effective Date of this Agreement, and the first payments are to be made on the
10th day of February, 1998 (which will include payment from the Effective Date
through the end of January, 1998) and thereafter continuously, as required, on
the 10th day of each succeeding calendar month, except as provided in
subsection (c) of this Section.
(c) The obligation of each signatory Employer to make contributions to the Fund
shall be suspended at any time that the assets of the Fund equal or exceed $1.3
million, and shall not resume following any such suspension until such time as
the assets of the Fund are less than $500,000. The Trustees of the Fund shall
audit the assets of the Fund each quarter as necessary to implement the
requirements of this subsection. The Trustees shall notify each of the Employers
signatory hereto of any suspension or resumption of the contribution obligation
pursuant to this subsection, provided that notice of any resumption of the
obligation shall be provided to the Employers at least 30 days prior to the date
that the resumed contributions are due to the Fund.
(d) It shall be the duty of each of the Employers signatory hereto to keep
current said payments due to the Fund and to furnish to the International Union,
United Mine Workers of America, and to the Trustees of the Fund, a monthly
statement showing, on a mine-by-mine basis, the full amounts due hereunder and
the hours worked with respect to which the amounts are payable. Payments to the
Fund shall be made by check payable to the "UMWA-BCOA LMPCP Fund."
(e) Payments shall be delivered or mailed to the Office of the UMWA-BCOA LMPCP
Fund as designated by the Trustees of the Fund.
(f) Failure of any Employer signatory hereto to make full and prompt payments to
the Fund specified in this Article in the manner and on the dates herein
provided shall be deemed a violation of the Agreement. This obligation of each
Employer signatory hereto, which is several and not joint, to so pay such sums
shall be a direct and continuing obligation of said Employer and it shall be
deemed a violation of this Agreement, if any operation to which this Agreement
is applicable shall be sold, leased, subleased, assigned or otherwise disposed
of for the purpose of avoiding any of the obligations hereunder.
(g) Each Employer agrees to give proper notice to the President of the
appropriate local union by the 18th day of each month that the Employer has made
the required payment to the Fund for the previous month, as required by this
Article, or is delinquent in such payment, such notice to set forth the amount
paid to the Fund, or the amount of delinquency and the hours worked with respect
to the mine or mines under the jurisdiction of such local union. 
Section 7. Applications for Grants From the Fund
The UMWA-BCOA LMPCP Fund will receive and review only those applications for
funds that are unanimously agreed upon and submitted in writing by the LMPCP
Committee at Eligible Facilities of Participating Employers. Participating
Employers are those that are currently contributing to the Fund, are not
delinquent in making any contributions to the Fund, and have a collective
bargaining agreement with the UMWA


<PAGE>   22


that is identical to this Agreement or imposes contractual terms and conditions
upon the parties equal to or in addition to those set forth in this Agreement.
Section 8. Award of Grants
A grant will be made to the LMPCP Committee only upon the unanimous agreement of
the Trustees of the UMWA-BCOA LMPCP Fund. The amount awarded to any one Eligible
Facility shall not exceed $20,000 per year.
Section 9. Permissible Uses of Fund Grants and Selection of Facilitators 
The use to which grants may be put include payments to outside facilitators,
consultants, and experts in collaborative efforts who, upon execution of this
Agreement, have been mutually agreed upon by representatives of BCOA and the
UMWA. The representatives of BCOA and the UMWA shall from time to time by
mutual agreement amend the approved list of such facilitators, consultants and
experts. The choice of which mutually-agreed upon facilitator, consultant or
expert to use in any particular Program at the Eligible Facility shall be made
by the LMPCP Committee. In addition, grants may be made for educational
materials for the LMPCP Committee. Grants may not be utilized to purchase
mineral or property rights, mining or capital equipment, NOX, SO2 or CO2
allowances, or goods or services of a similar nature that could be utilized by
Participating Employers to obtain, or could be construed as, a subsidy from
other contributing Employers. Grants also may not be used to defray or provide
wages or salaries to members of the LMPCP Committee or their aides.
Section 10. Prior Practice and Custom
The Employer and/or the Union may identify prior practices and customs to be
abolished at the facilities participating in the LMPCP Program. The LMPCP
Committee must be notified and given a 90-day opportunity to discuss and reach
alternative solutions. After 90 days, if no solution has been reached, the
matter shall be referred for resolution to the UMWA-designated Coordinator and
the appropriate Company-designated Coordinator. The UMWA and each signatory
Employer shall designate Coordinators for the LMPCP Program.
Section 11. Authority
The LMPCP is not intended to interfere with the grievance procedure or panel
decisions, nor should the settlement of disputes under the terms of this
Agreement be linked to the LMPCP. Any decision resulting from an LMPCP Program
shall be final and binding on the parties. The LMPCP Committee shall have no
authority to alter any term or provision contained in this Agreement or resolve
any grievance subject to Articles XXIII or XXIV of this Agreement. The ultimate
responsibility for decision-making at the operations remains with the Employer.
H. UMWA-BCOA Labor Management Policy Committee
The parties recognize that the coal industry is at a critical juncture. It
operates in a global economy and faces the challenges of environmental
legislation as well as fierce domestic and foreign competition. These challenges
are likely to increase rather than subside during the next several years. Mutual
cooperation at the highest levels and a sincere commitment to communication and
problem solving are therefore critical for the industry to maintain and enhance
its competitive position.
To address these concerns, the parties hereby establish a "UMWA-BCOA Labor
Management Policy Committee." This Committee shall operate as a labor management


<PAGE>   23


committee within the meaning of Section 302(c)(9) of the LMRA, as amended,
established and functioning so as to fulfill one or more of the purposes set
forth in Section 6(b) of the Labor Management Cooperation Act of 1978. The
Committee shall have the full support and commitment of both the UMWA and the
BCOA in the Committee's efforts to identify problems, formulate plans to solve
those problems and, where appropriate, conduct joint activities designed to
implement the plans. The Committee shall be comprised of four high-level
representatives of the UMWA; four high-level representatives designated by the
BCOA, and one neutral Chairman who shall be selected by the other members of the
Committee. The Chairman will have authority to assist the Committee in carrying
out its purposes, which shall include: (a) opening lines of communication that
will serve to support and promote the objectives outlined in this Agreement, and
(b) seeking to identify and addressing major issues facing the industry, such as
legislation, the environment, technological changes, and similar issues. The
Chairman shall have the authority, upon consultation with the Committee, to
invite individuals who can contribute to matters under discussion.
The Committee will meet on a regular basis as necessary to carry out its
mission. Expenses of the Committee shall be shared equally between the parties,
provided, however, that each party shall be responsible for the expenses
incurred by its own members. The Chairman's expenses shall be paid for by the
LMPCP Trust established pursuant to Part G of this Article. The Chairman's
expenses may include the establishment and maintenance of an office to
effectuate the purposes of the Committee. The Committee shall have no authority
to change, delete, add to or modify any of the provisions of this Agreement nor
shall the Committee address matters that are properly subjects of the Settlement
of Disputes portion of this Agreement.
 I. UMWA-BCOA Resolution of Disputes Trust
The UMWA and BCOA have established the UMWA-BCOA Resolution of Disputes Trust,
and have entered into a Memorandum of Understanding regarding such Trust. The
Memorandum of Understanding is incorporated by reference and made a part of this
Agreement.
Article III-HEALTH AND SAFETY
Section (a) Right to a Safe Working Place
Every Employee covered by this Agreement is entitled to a safe and healthful
place to work, and the parties jointly pledge their individual and joint efforts
to attain and maintain this objective. Recognizing that the health and safety of
the Employees covered by this Agreement are the highest priorities of the
parties, the parties agree to comply fully with all lawful notices and orders
issued pursuant to the Federal Mine Safety and Health Act of 1977, as amended,
and pursuant to the various state mining laws. 
Section (b) Federal Mine Safety and Health Act of 1977, As Amended 
The parties to this contract, finding themselves in complete accord with the
FINDINGS AND PURPOSE declared by the United States Congress in section 2 of
the Federal Mine Safety and Health Act of 1977 do hereby affirm and subscribe
to the principles as set forth in such section 2 of the Act.
(1) In consequence of this affirmation, the parties not only accept their
several responsibilities, obligations and duties imposed by the Federal Mine
Safety and Health Act, but freely resolve to cooperate among each other and with
the responsible officials of


<PAGE>   24


federal and state governments in determined efforts to achieve greatly improved
performance in coal mine health and safety.
(2) Neither party waives nor repudiates any administrative, procedural,
legislative, or judicial rights under or relating to the Federal Mine Safety and
Health Act of 1977, as amended.
Section (c) Joint Industry Health and Safety Committee 
There shall be a Joint Industry Health and Safety Committee composed of six
members, three to be appointed by the Union, one of whom shall have special
knowledge and expertise in coal mine health matters, and three to be appointed
by the Employers, one of whom shall have special knowledge and expertise in coal
mine health matters. The Committee shall consult with the Mine Safety and Health
Administration and/or representatives of the Secretary of Health and Human
Services, looking toward review and appropriate development and revision of
improved mandatory health and safety standards as provided in section 101 of the
Federal Mine Safety and Health Act of 1977. The Committee may also seek such
joint consultations with the Mine Safety and Health Administration for
discussion of the technical aspects of petitions by the Employer or the Union as
provided in section 101(c) of the Act. Where agreed by the parties, the
Committee may meet to discuss health and safety matters of importance to the
coal industry.
Section (d) Mine Health and Safety Committee
(1) At each mine there shall be a Mine Health and Safety Committee made up of
miners employed at the mine who are qualified by mining experience or training
and selected by the local union. The local union shall inform the Employer of
the names of the Committee members. The Committee at all times shall be deemed
to be acting within the scope of their employment in the mine within the meaning
of the applicable workers' compensation law.
(2) The Union and Employer shall jointly establish and fund a course of health
and safety training for members of the Mine Health and Safety Committee, which
is designed to improve health and safety knowledge and skills. The Mine Health
and Safety Committee shall participate in and shall be paid at their regular
rates of pay by the Employer for attendance at training sessions. The training
program will be established by the Joint Industry Training Committee.
(3) The Mine Health and Safety Committee may inspect any portion of a mine and
surface installations, dams or waste impoundments and gob piles connected
therewith. If the Committee believes conditions found endanger the lives and
bodies of the Employees, it shall report its findings and recommendations to the
Employer. In those special instances where the Committee believes that an
imminent danger exists and the Committee recommends that the Employer remove all
Employees from the involved area, the Employer is required to follow the
Committee's recommendation and remove the Employees from the involved area
immediately. 
The Mine Health and Safety Committee shall, when engaged in its
official duties as herein provided, be furnished transportation at the mine.
(4) The Committee shall give sufficient advance notice of an intended inspection
to allow a representative of the Employer to accompany the Committee. If the
Employer does not choose to participate, the Committee may make its inspection
alone.


<PAGE>   25

(5) If the Mine Health and Safety Committee in closing down an area of the mine
acts arbitrarily and capriciously, a member or members of such Committee may be
removed from the Committee. An Employer seeking to remove a Committee member
shall so notify the affected Committeeman and the other members of the Mine
Health and Safety Committee. If the Committee objects to such removal, the
matter shall be submitted directly to arbitration within 15 days. If the other
members of the Committee so determine, the affected member shall remain on the
Committee until the case is submitted to and decided by the appropriate panel
arbitrator. If the Employer requests removal of the entire Committee, the matter
automatically shall be submitted to arbitration and the Committee will continue
to serve until the case is submitted to and decided by the arbitrator. A
Committee member shall not be suspended or discharged for his official actions
as a Committee member. 
(6) Mine management and the Mine Health and Safety Committee shall meet monthly
at times arranged by the parties for the purpose of reviewing mine accident
prevention efforts, discussing mine accidents and resolving health and safety
problems at the mine. Special meetings may be called by either party for the
purpose of resolving safety matters.
(7) The Employer shall be responsible for paying Committee members for the
performance of the following duties:
(i) Inspecting the entire mine and surface installations connected therewith
with management on a regular basis mutually agreed upon by the Employer and the
Committee, but in no case any less often than every two months. The Employer
shall be responsible for paying each Committeeman one shift at his regular rate
of pay once in every two month period for performance of his duties under this
paragraph.
(ii) Committee members shall be paid at their regular straight time rate of pay
for up to two hours for time spent in joint monthly meetings with the Employer
provided for in paragraph (6).
(iii) Investigating explosions and/or disasters including any mine fatality.
Section (e) Access to the Mine
In recognition of the UMWA's concern with health and safety in the coal mines,
Union officials as described below and any authorized representative of the UMWA
Department of Occupational Health and Safety, without interfering with the Mine
Health and Safety Committee and the Mine Committee in the performance of their
duties, shall be granted access to the mines on the following conditions:
(1) Subject to the routine check-in and check-out procedures at the mine, the
officers of the International Union, the District President of the District
involved, and authorized representatives of the International Union's Department
of Occupational Health and Safety shall be afforded the opportunity to visit a
mine to consult with management or the Mine Health and Safety Committee and to
enter the mine at the request of either management or the Mine Health and Safety
Committee.
(2) If the Mine Health and Safety Committee calls in such representatives to
meet with mine management to discuss health or safety problems, mine management
shall have the right to be represented by its own health or safety
representative. Where application of a federal or state law or regulation is
involved, either management or the authorized Union representative may invite
federal or state inspectors to participate.


<PAGE>   26


(3) Representatives authorized by the International Union may accompany state or
federal coal mine inspectors investigating any fatal or serious nonfatal
accident, ignition, mine fire or mine explosion.
(4) The President, Vice President and Secretary-Treasurer of the UMWA
International Union shall be granted the right to visit any and all mines
covered by this Agreement at any time.
(5) The provisions of this section are in no way intended to impair or to waive
any statutory rights under federal or state laws or regulations which Union
officials and representatives may have to enter upon mine property or enter the
mines.
Section (f) Reports
The Mine Health and Safety Committee and the Employer shall maintain such
records concerning inspections, findings, recommendations and actions, relating
to the provisions of this Agreement, as may be agreed upon, and copies of all
such reports shall be promptly exchanged.
The Employer shall each month provide the Mine Health and Safety Committee with
two copies of a list of all accidents reported to MSHA. Such report will reflect
the nature of the injury and the location of the accident. 
In addition, the Employer shall notify the Mine Health and Safety Committee
promptly of all serious injuries known to management which must be immediately
reported directly to MSHA.
Section (g) Safety Rules and Regulations
Reasonable rules and regulations of the Employer, not inconsistent with federal
and state laws, for the protection of the persons of the Employees and the
preservation of property shall be complied with.
After the effective date of this Agreement, at least ten (10) days prior to the
implementation of any new or revised safety rule or regulation, the Employer
shall provide copies of the proposed rule or regulation to the Mine Health and
Safety Committee and shall meet and discuss it with Committee members in an
attempt to resolve any differences between the parties. If the Committee or any
Employee believes that any such new rule or regulation or revision is
unreasonable, arbitrary, discriminatory or adversely affects health or safety,
they may file and shall process a grievance.
Section (h) Cooperation in Development of Mining Plans
During development, modification or revision of any mining plan pertaining to
health and safety which must be submitted for approval in accordance with the
Federal Mine Safety and Health Act of 1977 covering the following subjects-roof
control, ventilation, dust control, noise, maintenance, permissible equipment,
escapeways, emergency procedures, emergency transport and haulage-the Mine
Health and Safety Committee shall be afforded the opportunity to submit comments
or recommendations to the operator concerning such plans. At the request of the
Committee, a representative of the UMWA Safety Division shall participate in
such comments and recommendations. The Employer shall provide an opportunity for
review prior to the required submittal date and ten (10) days shall be allowed
for written comments by the Mine Health and Safety Committee. Upon request of
the Mine Health and Safety Committee, given within said ten (10) day period, the
Employer shall provide to the Committee one (1) copy of any such plan, revision
or modification.


<PAGE>   27


Section (i)  Preservation of Individual Safety Rights
(1) No Employee will be required to work under conditions he has reasonable
grounds to believe to be abnormally and immediately dangerous to himself beyond
the normal hazards inherent in the operation which could reasonably be expected
to cause death or serious physical harm before such condition or practice can be
abated. When an Employee in good faith believes that he is being required to
work under such conditions he shall immediately notify his supervisor of such
belief and the specific physical conditions he believes exist. The Employee
shall state the factual basis for his belief but shall not be required to cite
applicable law or regulation. Unless there is a dispute between the Employee and
management as to the existence of such condition, steps shall be taken
immediately to correct or prevent exposure to such condition utilizing all
necessary Employees, including the involved Employee.
(2) If the existence of such condition is disputed, the Employee shall have the
right to be relieved from duty on the assignment in dispute. Management shall
assign such Employee to other available work not involved in the dispute; and
the Employee shall accept such assignment at the higher of the rate of the job
from which he is relieved and the rate of the job to which he is assigned. The
assignment of such alternative work shall not be used to discriminate against
the Employee who expresses such belief. If the existence of such condition is
disputed, at least one member of the Mine Health and Safety Committee shall
review such condition with mine management within four (4) hours to determine
whether it exists and each party shall state the facts upon which it relies as
to whether such condition exists or does not exist. If there is agreement
between the Mine Health and Safety Committee member or members and mine
management that the condition does not exist, the Employee shall return to his
regular job immediately.
(3) If the dispute remains unsettled following the investigation by a member of
the Mine Health and Safety Committee and involves an issue concerning compliance
with federal or state mine safety laws or mandatory health or safety
regulations, the appropriate federal or state inspection agency shall be called
in immediately and the dispute shall be settled on the basis of the findings of
the inspector with both parties reserving all rights of statutory appeal. Should
the federal or state inspector find that the condition complained of requires
correction before the Employee may return to his job, the Employer shall take
the corrective action immediately. Upon correction, the complaining Employee
shall return to his job. If the federal or state inspector does not find a
condition requiring correction, the complaining Employee shall return to his job
immediately.
(4) For disputes not otherwise settled, a written grievance shall be filed no
later than five working days after the findings of the inspector and the dispute
shall be referred immediately to step 3 as provided for in Article XXIII,
Settlement of Disputes, Section (c)(3). If upon final resolution of the dispute,
as provided above, it is determined that an abnormally unsafe or abnormally
unhealthy condition within the meaning of this section existed, the Employee
shall be paid for all earnings he lost, if any, as a result of his removing
himself from his job. In those instances where a determination has been made, as
provided above, that an Employee did not act in good faith in exercising his
rights under the provisions of this Agreement, he shall be subject to
appropriate disciplinary action, subject, however, to his right to file and
process a grievance. In no event, however, shall such discipline for failure to
act in good faith be imposed prior to the


<PAGE>   28


review between at least one member of the Mine Health and Safety Committee and
mine management required under paragraph (2) of this Section (i). 
(5) None of the provisions of this section relating to compensation for 
Employees shall apply where the Employer withholds or removes an Employee or
Employees from all or any area of a mine, or where a federal or state inspector
orders withdrawal or withholds an Employee or Employees from all or any area of
a mine. However, this section is not intended to waive or impair any right to
compensation to which such Employees may be entitled under federal or state
law, or other provisions of this Agreement.
(6) The provisions of this section shall in no way diminish the duties or powers
of the Mine Health and Safety Committee.
Section (j) Physical Examination
(1) Physical examination, required as a condition of or in employment, shall not
be used other than to determine the physical condition or to contribute to the
health and well-being of the Employee or Employees. The retention or
displacement of Employees because of physical conditions shall not be used for
the purpose of effecting discrimination.
(2) When a physical examination of a recalled Employee on a panel is conducted,
the Employee shall be allowed to return to work at that mine unless he has a
physical impairment which constitutes a potential hazard to himself or others.
(3) That once employed, an Employee cannot be terminated or refused recall from
a panel or recall from sick or injured status for medical reasons over his
objection without the concurrence of a majority of a group composed of an
Employer-approved physician, an Employee-approved physician, and a physician
agreed to by the Employer and the Employee, that there has been a deterioration
in physical condition which prevents the Employee from performing his regular
work. Each party shall bear the cost of examination by the physician it
designates and shall share equally the cost of examination by the jointly
designated physician.
(4) Where an Employer challenges the physical ability of an Employee or panel
member to perform his regular work and is subsequently proven wrong, the
Employee shall be compensated for time lost due to the Employer's challenge,
including medical examination expenses incurred in proving his physical ability
to perform the requirements of the job.
Section (k) Minimum Age
No person under 18 years of age shall be employed inside any mine nor in
hazardous occupations outside any mine; provided, however, that where a state
law provides a higher minimum age, the state law shall govern.
Section (l) Workers' Compensation and Occupational Disease
Each Employer who is a party to this Agreement will provide the protection and
coverage of the benefits under workers' compensation and occupational disease
laws, whether compulsory or elective, existing in the states in which the
respective Employees are employed. Refusal of any Employer to carry out this
directive shall be deemed a violation of this Agreement. Notice of compliance
with this section shall be posted at the mine.
Section (m) Safety Equipment and Protective Clothing Allowance
Safety equipment and devices, including electric cap lamps, self-rescuers,
personal ear plugs, prescription safety glasses exclusive of eye examination
costs, nonprescription


<PAGE>   29


safety glasses or goggles, and knee pads, shall be furnished by the Employer
without charge. The Employee shall use and take reasonable care of equipment
provided by the Employer. The Employer shall not be required to provide personal
wearing apparel such as clothing, shoes, boots where worn as part of normal
footwear, hats, belts, and gloves. Instead of supplying such personal wearing
apparel, the Employer shall pay each Employee an annual protective clothing
allowance. The protective clothing allowance will be $220 for the year 1998,
payable to each active Employee on the first payday following the Effective Date
of this Agreement, and $220 during each of the years 1999, 2000, 2001 and 2002,
payable on the first payday following the respective anniversary dates of this
Agreement. A new Employee will be entitled to the appropriate allowance on the
first payday following his employment. No Employee shall be entitled to more
than one clothing allowance during any contract year. Hip boots or waders shall
be kept by the Employer at the mine and issued for use on the job to the
Employee as unusual circumstances warrant.
Section (n) Maintenance
A maintenance program shall be established at each mine to ensure that equipment
is maintained in a safe operating condition. Such programs shall include the
requirement that equipment operators report promptly all equipment defects of
which they have actual knowledge. Maintenance Employees shall exercise required
safety precautions while carrying out their duties.
Section (o) Special Safety Problem Areas
To provide a specific contractual solution to safety problems which regularly
occur and to insure uniform health and safety practices, the parties agree as
follows:
(1) The Employer shall establish a program for operation and maintenance of all
hoisting facilities and emergency escapeways. The escapeways shall be passable
by injured Employees requiring stretchers, and shall be equipped with
directional signs using reflective material.
(2) The Employer shall design, build and maintain all coal waste embankments and
water impoundments in accord with statutory and regulatory requirements.
(3) The Employer shall maintain at each mine a thoroughly equipped first-aid
station and make appropriate arrangements for a doctor or nurse to be on call on
short notice in cases of emergencies.
(4) The Employer shall provide a safe, quick and efficient means of transporting
injured or sick Employees from any section of the mine to the surface and from
the surface to nearby medical facilities.
(5) When an Employee is injured during his shift, he shall be promptly removed
from the mine, and, upon submission of proof of medical treatment for that
injury, he shall be paid for the complete shift. When an Employee becomes sick
during his shift, and leaves because he cannot perform his work, he shall be
paid until he reaches the portal.
(6) The Employer shall equip all port-a-buses where used with first-aid kits and
potable drinking water stored for emergency purposes. 
(7) The Employer shall station a responsible employee on the surface    
available to communicate at all times with Employees when they are at work
underground.
(8) The Employer shall provide a safe mantrip for every miner as transportation
in and out of the mines to and from the working section.


<PAGE>   30


(9) No Employee shall be required to lift more weight than he or she is
physically capable of lifting.
(10) Engineer and Pumper Duties-When required by the Employer, engineers,
pumpers, firemen, power plant and substation attendants shall under no
conditions suspend work but shall at all times protect all the Employer's
property under their care, and operate fans and pumps and lower and hoist
persons or supplies as may be required to protect the Employer's coal mine and
other related facilities.
(11) The Employer shall prohibit cutting, welding or burning in the face areas
of any underground mine when any miners are inby unless the contaminated air is
immediately directed into a return air course, or unless the cutting, welding or
burning is far removed from the working areas so as to present no hazard to the
men inby.
(12) The Employer shall regularly instruct all Employees as to the location of
all escapeways and the proper procedure to be followed in cases of emergency
exit. When an Employee is assigned to work in a section with which he is not
familiar, his foreman shall inform him of the designated escapeways for that
section.
Section (p) Settlement of Health or Safety Disputes
When a dispute arises at the mine involving health or safety, an immediate,
earnest and sincere effort shall be made to resolve the matter through the
following steps:
(1) By the aggrieved party and his immediate supervisor. Any grievance which is
not filed by the aggrieved party within twenty-four (24) hours following the
shift on which the grievant reasonably should have known of such grievance shall
be considered invalid and not subject to further consideration under the
grievance procedure. If the grievance is not settled at this step, the BCOA-UMWA
Standard Health and Safety Grievance Form shall be completed and signed jointly
by the parties.
(2) If no agreement is reached at step 1, the grievance shall be taken up by the
Mine Health and Safety Committee, the UMWA district health and safety
representative and mine management within four days of the conclusion of step 1.
If the dispute involves an issue concerning compliance with federal or state
mine safety laws or mandatory health or safety regulations, the appropriate
federal or state inspection agency shall be called in immediately and the
dispute shall be settled on the basis of the inspector's findings, with both
parties reserving all statutory rights of appeal. If the dispute is not settled,
a record shall be made of the position of the parties and the evidence at this
step.
(3) If no agreement is reached at step 2 within five (5) days, the dispute shall
be referred to an arbitrator for settlement in accordance with the procedure
under Article XXIII, section (c) (4).
The grievant shall have the right to be present at each step, if he so desires,
of the foregoing procedures until such time as all evidence is taken. A decision
reached at any stage prior to step 4 of the proceedings above outlined shall be
reduced to writing and signed by both parties. The decision shall be binding on
both parties and shall not be subject to reopening except by mutual agreement.
Article IV-WAGES AND HOURS
Traditional Schedules
Section (a) Basic Work Week
The basic work week shall begin at 12:01 a.m. Monday.


<PAGE>   31


Section (b)  Basic Work Day
(1) INSIDE EMPLOYEES: For all inside Employees a work day of eight (8) hours
from portal-to-portal, which means collar-to-collar or bank-to-bank, is
established including a staggered thirty (30) minutes for lunch, and without any
intermission or suspension of operation throughout the day. For inside day
workers these eight (8) hours shall be paid for at straight time rate. Overtime
beyond eight (8) hours per day and forty (40) hours per week shall be paid for
at time and one-half except as provided in section (d) with no pyramiding of
overtime. Straight time rates for inside day workers shall be the total daily
normal shift earnings for eight (8) hours divided by eight (8) hours.
(2) OUTSIDE EMPLOYEES: For all outside Employees except those covered in
paragraph (3) of this section (including all surface mine and coke oven
Employees), a work day of seven (7) hours and fifteen (15) minutes is
established including a staggered thirty (30) minutes for lunch, and without any
intermission or suspension of operations throughout the day. These seven (7)
hours and fifteen (15) minutes shall be paid for at straight time rate. Overtime
beyond seven (7) hours and fifteen (15) minutes per day and thirty-six and one
quarter (36.25) hours per week except as provided in section (d) shall be paid
for at time and one-half, with no pyramiding of overtime. Straight time earnings
for outside day workers covered by this paragraph shall be the total daily
normal shift earnings for seven (7) hours and fifteen (15) minutes divided by
seven and one-quarter (7.25) hours. However, the work day of any outside
Employee engaged in the dumping, handling and preparation of coal and the
manufacture of coke may be extended to eight (8) hours provided overtime is paid
for work in excess of seven (7) hours and fifteen (15) minutes per day.
(3) OUTSIDE CONTINUOUS EMPLOYEES: For all outside continuous Employees who are
engaged at powerhouses, substations and pumps operating continuously for
twenty-four (24) hours daily, and continuous hoisting engineers, a work day of
eight (8) hours is established including a staggered thirty (30) minutes for
lunch and without any intermission or suspension of operations throughout the
day. These eight (8) hours shall be paid for at straight time rate. Overtime
beyond eight (8) hours per day and forty (40) hours per week shall be paid for
at time and one-half, except as provided in section (d), with no pyramiding of
overtime. Straight time earnings for day workers covered by this paragraph shall
be the total daily normal shift earnings for eight (8) hours divided by eight
(8) hours.
Section (c) Alternate Work Schedules
In order to address employment and overtime issues, and notwithstanding the
Traditional Schedules set forth in this Article and the Alternative Schedules
set forth in Appendix C of this Agreement, the parties agree that alternate work
schedules may be adopted pursuant to the following procedure. Any such alternate
schedules shall be governed solely by the following procedure of this Section.
At least thirty (30) days before the proposed implementation of any alternate
work schedule, the Employer and the Local Union will meet to consider in good
faith any modifications to the proposed schedule that may be suggested by either
party. The proposed schedule may change the basis on which overtime is paid, so
long as such payments are consistent with applicable law. At the conclusion of
such thirty (30) day


<PAGE>   32


period, the Employer may install an alternate work schedule if mutually agreed
to and ratified by the Local Union.
Section (d) Lampman
The lampman is not a continuous Employee under subsection (b) (3). A lampman
works seven and one-quarter hours (7.25), at straight time and is entitled to
receive premium rates for any hours worked in excess of his seven and
one-quarter (7.25) hour shift.
Section (e) Saturday, Sunday and Premium Work
(1) Work performed on Saturday shall be paid for at time and one-half or rate
and one-half, except that double time or double rates shall be paid for all work
in excess of an Employee's basic work day as defined in section (b). Work
performed on Sunday shall be paid for at double time or double rates. Work
performed on holidays shall be paid for at triple time or triple rates. No coal
will be produced or processed on the Christmas Eve and Christmas Day holidays
provided for in this Agreement; coal may be produced, processed or loaded for
shipment on all other holidays provided for in this Agreement, and Saturdays and
Sundays, provided that Sunday (for those Employees whose work week begins on
Monday) and holiday work shall only be worked at the Employee's option, and in
accordance with the procedure set forth in subparagraph (6) below.
(2) The Employer shall have the right to operate on any day of the week,
including Sundays and holidays. Work on the seventh consecutive day and all
holidays is optional.
(3) All Employees at mines which produce coal six (6) days per week shall be
given a fair and equal opportunity to work on each of such six (6) days. Laying
off individual Employees during the week for the purpose of denying them six (6)
days' work is prohibited.
(4) The Employer has the right to operate on Sundays and holidays by scheduling
full or partial operations and/or full or partial crews on any shift. Nothing in
this Article shall affect the Employer's right to operate with less than a full
complement on any day or shift in the event scheduled Employees do not report
for work. Where the Employer schedules partial operations and/or partial crews
for any reason, such work must be shared on an equitable basis to the extent
practicable.
(5) The Employer shall have the right to schedule maintenance crews, powerhouse
and substation Employees, pumpers, lamphouse and bathhouse men, firemen, fan
attendants, switchboard operators and other similar Employees for Saturday and
Sunday work and schedule their days off during the first five (5) days of the
work week (except continuous hoisting engineers as now provided in subsection
(b)(3) hereof). However, such Employees shall be given the opportunity to work
the same number of days per week as the number of days on which the mine
produces coal, and shall be given equal opportunity to share the available work
on premium days, except that Sunday or holiday work may be scheduled at the
Employer's discretion so long as the opportunity to work on Sundays or holidays
is shared on an equitable basis to the extent practicable and work on the
seventh consecutive day is voluntary.
(6) In the event the Employer knows that work will be available on Sunday or
holidays, the Employer will post a notice that such work is available. Such
notice will be posted before the end of the day shift on the Wednesday before
the Sunday (or four days before a holiday) on which such work is available.
Employees shall have until the end of the day shift on Thursday (or three days
before a holiday) to volunteer for such work, and the


<PAGE>   33


Employer shall notify those volunteers who will work by the end of the day shift
on Friday (or two days before a holiday).
(7) Except in cases of emergency, all Employees required to perform idle day
work on Saturday will be notified by the preceding Thursday. The Employer shall
post a list of the Employees required to perform idle day work on Saturday
before the end of the day shift on the Thursday prior to the Saturday on which
such work is required.
(8) An Employee called to work on idle days at a rate less than his regular
classified rate may decline to perform that work at lower rates on idle days.
(9) Idle day work must be equally shared in accordance with past practice and
custom. An overtime roster must be kept up to date and posted at each mine for
the purpose of distributing overtime on an equitable basis to the extent
practicable.
(10) Work voluntarily performed in the production or processing of coal on
Sundays and holidays must be shared equitably to the extent practicable among
those Employees who volunteer for the work.
Section (f) Standard Daily Wage Rate
The standard daily wage rates paid for work performed under this Agreement and
set forth in Appendix A and the job titles within the respective classifications
are grouped in Appendix B, Part I, which includes the five grades for
underground jobs in deep mines, Appendix B, Part II, which includes the five
grades for jobs in strip and auger mines, and Appendix B, Part III, which
includes the four grades for jobs in preparation plants and other surface
facilities for deep or surface mines. The standard daily wage rate for each job
classification shall be the standard daily wage rate for all job titles included
in such classification. The list of job titles within each classification
indicates only the rates to be paid to Employees bearing such job titles. No
Employer shall have authority to introduce any job title or any classification
into a mine in which it does not presently exist, except where permitted under
any Skills Enhancement Program adopted by the parties pursuant to Article
XVI(h).
Where an Employee believes that the duties which he is required to perform are
appropriate to a job title and classification other than those which have been
assigned to him, he may file and process a grievance under Article XXIII
(Settlement of Disputes) to be classified under the proper job title. Should an
arbitrator decide that the complaining Employee has been improperly classified,
he shall order the Employer to properly classify him under the proper job title.
If the new classification involves a higher rate, the Employer shall reimburse
him for all wages he would have earned had he been properly classified,
retroactive to the date he filed his grievance. The time limit for the filing of
grievances imposed by Article XXIII, section (d) (Settlement of Disputes) shall
not be applicable to this section.
Article V-HELPERS ON FACE EQUIPMENT IN UNDERGROUND MINES
Section (a) Assignment of Helpers
(1) Full-time Helpers to Assist Continuous Mining Machine Operators and Roof
Bolting Machine Operators.
A full-time helper shall be assigned to assist each continuous mining machine
operator on each continuous mining section, and a full-time helper shall be
assigned to assist each roof bolting machine operator on each continuous mining
section and each conventional mining section, except as provided below.


<PAGE>   34
(2) Roof Bolting Machines Which Do Not Require Full-time Helpers.
These provisions do not require the assignment of a helper to assist the 
operator of a roof bolting machine mounted on a continuous miner; or to a 
stoper (except where recognized by prior practice and custom); or to a 
twin-boom bolting machine if that machine is manned by two full-time roof 
bolters. Helpers shall not be required where two roof bolting machines are
regularly assigned to work in a single working place; but when a roof bolting
machine regularly assigned to work in a single place with another roof bolting
machine works alone, a helper shall be assigned to assist the operator.
(3) Continuous Mining Machines Which Do Not Require Full-time Helpers.
A helper to assist the operator of a continuous mining machine shall not be 
required when such a machine utilizes a loading machine to load its coal, but 
a helper shall be assigned whenever a loading machine is not used.
Section (b) Duties and Responsibilities of Helpers 
(1) Helper-Trainee. An Employee who successfully bids for a helper position 
shall be a helper-trainee for a maximum period of 120 days after he is awarded
a helper's job. If after 30 days, it is determined that the Employee cannot 
successfully complete his period of training for the machine operator's job, 
he shall be returned to his former job and the helper job reposted and filled 
in the same manner. During the 120-day period, the helper-trainee shall be 
trained to operate the machine to which he is assigned and shall learn to 
perform the duties which are essential to the safe and efficient operation of
the machine. And, in addition, he shall perform the jobs normally associated
with the operation of the machine as directed by management. The helper-trainee
shall be taught his duties by the machine operator and will be paid at wage
grade four (4). 
(2) Fully-Trained Helper. A fully-trained helper is an Employee
who has successfully completed the maximum 120-day training period. The
fully-trained helper shall then receive the machine operator rate and shall
continue to perform his helper duties and shall relieve and spell the machine
operator in the operation of the machine. And, in addition, he shall perform
the jobs normally associated with the operation of the machine as directed by
management until such time as a permanent vacancy arises on the machine at
which time he shall be promoted to the machine operator's job except as
provided in Article XVII, section (i) (11) (Seniority). At that time a new
helper job will be posted and filled under the job bidding procedures.  
Section (c) Exemption 
The provisions of this Article shall not be applicable to machines at mines 
where by law or prior practice helpers or two full-time operators are assigned
to face equipment. In addition, the provisions of this Article shall not be 
applicable in any UMWA District where by District agreement, helpers or two 
full-time operators are assigned throughout the District to face equipment. 
Article VI-SHIFTS AND SHIFT DIFFERENTIALS 
Section (a) Multiple Shifts 
The Employer shall have the right to work all the mines or any one or more of 
them extra shifts with different crews. When the mine works only one shift, it
shall be in the daytime, but this shall not prevent cutting and loading at 
night in addition to the day shift cutting and loading.
Section (b) Hoisting of Coal


<PAGE>   35


The hoisting of coal shall be permitted on each shift.
Section (c) Shift Differentials 
Employees scheduled for and starting work on the afternoon shift,
whether paid by the day or by the ton, shall be paid thirty (30) cents
additional for each hour worked. Employees scheduled for and starting work on
the midnight shift, whether paid by the day or by the ton, shall be paid forty
(40) cents additional for each hour worked. Shift differentials shall be
considered a part of the regular rate of pay in the calculations of overtime,
premium rates, holiday, vacation, reporting, jury duty, military duty,
bereavement pay, and personal or sick leave.
Section (d) Working into the Next Shift
An Employee who completes his regularly scheduled shift and continues to
work into the next shift shall be paid the applicable differential for all
additional hours worked. When an Employee works into the day shift from the
midnight shift, he shall be paid the midnight shift differential for all hours
worked on the day shift in addition to all hours worked on the midnight shift.
Section (e) Call-back 
An Employee who completes his regularly scheduled shift and leaves his
Employer's premises and is called out on another shift within a twenty-four
hour period from the beginning of his regularly scheduled shift shall be paid
the applicable premium rate together with any applicable shift differential for
the hours worked on the additional shift. Section (f) Shift Rotation Time and
one-half shall not be paid where the regular rotation of shifts requires the
working of more than one shift in any consecutive twenty-four hour period.
Article VII-MINE COMMUNICATION COMMITTEES
The parties recognize that, for their joint benefit, the prosperity and
efficiency of the coal industry are dependent upon their ability to work
cooperatively.
At the earliest practicable date after the introduction of the new Agreement, 
top level International Union and Employer representatives shall tour the mines 
throughout the industry in an effort to promote improved relationships and as 
an introduction to the below described program. Subsequent similar tours during 
the term of the Agreement shall also be developed as appropriate. 
In order to further implement this expression of purpose, a Mine Communication
Committee shall be established at each mine. The Union representation on the 
Committee shall be the local President, the Mine Committee Chairman and the 
Safety Committee Chairman. The Union members shall be certified to the Mine 
Management and a corresponding number of Employer members shall be certified to
the Union. The Employer and Union members of the Committee shall meet at 
mutually agreeable times, but no less than once each month. The function of the 
Committee shall be to identify and discuss any problems or potential problems 
which, if unresolved, could interrupt the steady and regular operation of the 
mine. 
The representative of management or the local union President may from 
time to time suggest to the Employer areas of special concern consistent with 
the purposes of the Committee and the provisions of this Agreement. The 
functioning of this Committee shall not affect the existing rights of either 
party under any other provision of this Agreement.


<PAGE>   36


Article VIII-STARTING TIME
Section (a) Shift Starting Time
Each shift shall have a regular starting time established in accordance with
past practice and custom.
Section (b) Lowering Employees
Employees shall be at the shaft collar or the bank in time to be lowered so as
to be in the mantrip at the scheduled departure time. In mines where it is
necessary to lower Employees at brief intervals, depending on the size and speed
of the cages, platforms or other devices used to transport persons in shafts and
slopes, their starting time may be reasonably staggered before or after the
regular shift starting time in order to permit the safe and orderly lowering of
the Employees.
Section (c) Safety and Maintenance
The Employer may stagger the starting time for individual Employees who perform
safety, maintenance or other functions essential to the safe and efficient
operation of the mine or surface facility.
Section (d) Surface Facilities
The regular shift starting time in surface facilities, such as preparation
plants, cleaning plants and shops, need not be the same as the regular shift
starting time for the mine.
Section (e) Changing Crews at the Face 
The Employer has the right to change crews at the face, including the right to
require reasonable amounts of overtime as necessary to allow for changing at the
face.
Article IX-ALLOWANCES
Section (a) Bereavement Pay
When death occurs in an Employee's immediate family (spouse, mother, father,
mother-in-law, father-in-law, son, daughter, brother or sister, step-father,
step-mother, step-children, grandfather, grandmother and grandchildren), an
Employee upon request will be excused for up to three (3) days, two (2) to be
consecutive and include the day of the funeral and the third at the Employee's
option. The Employee shall receive pay at his regular or applicable overtime or
premium rate, provided it is established that he attended the funeral.
Section (b) Jury Duty
When a regular Employee is called for jury service, he shall be excused from
work on the days he is required to appear in court. Employees called for jury
duty, upon proof of such service and of the amount of pay received therefor,
will be paid whatever sum, if any, is necessary in addition to the fees received
for jury duty service to reimburse him for earnings lost because of such jury
duty, including payment for any scheduled overtime or premium time.
Section (c) Reporting Pay
Unless notified not to report, when an Employee reports for work at his usual
starting time, he shall be entitled to four (4) hours' pay whether or not the
operation works the full four hours, but after the first four (4) hours, the
Employee shall be paid for every hour thereafter by the hour, for each hour's
work or fractional part thereof. If, for any reason, the regular routine work
cannot be furnished, the Employer may assign the Employee to other than the
regular work. Reporting pay shall not be applicable to any portion of the four
hours not worked by the Employee due to his refusal to perform assigned work.


<PAGE>   37


Notification of Employees not to report means reasonable efforts by management
to communicate with the Employee.
Section (d) Military Duty
When an Employee is called to active duty in the armed forces, the national
guard or the reserves, including emergency call-ups and summer encampment
training, he shall be excused from work. Upon proof of service and the amount of
pay received therefor, the Employee is entitled to receive a maximum of two (2)
weeks pay in any calendar year at his regular rate, including payment for any
regularly scheduled overtime and premium pay, less any amounts received by the
Employee from the armed services, the national guard or reserves for such
period.
Section (e) Personal or Sick Leave
(1) During the calendar years 1998, 1999, 2000, 2001 and 2002, each classified
Employee with one year or more of classified service with his Employer shall
become eligible for Personal or Sick Leave, at his regular rate (including
regularly scheduled overtime where applicable, but not including premiums for
Saturday, Sunday, holidays or birthday work) for any five (5) working days on
which the Employee is absent from work for reasons of sickness, accident,
emergency, or personal business.
(2) Paid Personal or Sick Leave shall not be utilized for any period of less 
than one (1) full regular workday. 
(3) To the extent practicable, the Employee shall notify his immediate
supervisor at least twenty-four (24) hours in  advance of the shift or shifts
for which he will be unable to report. In the  event of sudden sickness,
accident, or emergency, the Employee shall make a reasonable effort to notify
his immediate supervisor at least two (2) hours in advance of the shift on
which he is scheduled to work. (4) If, at the end of any calendar year, an
Employee has not exhausted the paid Personal or Sick Leave for which he becomes
eligible under this section, he shall receive pay in lieu of such leave at his
regular rate, including regularly scheduled overtime as provided in paragraph
(1) above. His regular rate shall be the rate in effect at the end of such
calendar year for the payroll period which includes the last workday of the
calendar year. (5) Personal or Sick Leave days shall not be counted as part of
the seven (7) day waiting period under the sick and accident pay program unless
the Employee is disabled as a result of sickness or accident so as to be
prevented from performing his regular classified job and his disability is
certified by a physician legally licensed to practice medicine. 
(a) Employer Options On Personal Or Sick Leave Pay In the event an Employee is 
absent from work and has not requested a Personal or Sick Leave Day in advance 
of his absence, the Employer may pay the Employee for that day and charge the 
Employee with a Personal or Sick Leave Day if the Employee has not already 
exhausted such days. The Employer may charge up to two (2) Personal or Sick 
Leave Days for each absence occurrence of more than one (1) consecutive day. 
For example, if an Employee is absent four (4) consecutive work days, he may 
be charged only with two (2) such days. Personal or Sick Leave Days may be 
charged against the seven (7) day waiting period under the Sickness and
Accident Program, but will not affect sickness and accident eligibility. 
(b) Employee Options


<PAGE>   38


If, at the end of any calendar year, an Employee has not exhausted the Personal
or Sick Leave Days for which he becomes eligible, he shall, within ten (10)
working days, at his election:
1. Receive pay in lieu of such leave at his regular classified straight time
rate, as provided in Section (e)(4) above; or
2. Carry over into the next calendar year no more than five (5) days of Personal
or Sick Leave for which he has not been paid, provided, however, no Employee may
accumulate more than ten (10) Personal or Sick Leave Days in any calendar year;
or
3. Have the pay in lieu of such leave at his regular classified straight time
rate placed in the 401(k) Cash Deferred Savings Plan of 1988 maintained under
this Agreement. His regular rate shall be the rate in effect at the end of such
calendar year for the payroll period which includes the last work day of the
calendar year.
Section (f) Family & Medical Leave
(1) Any Employee who has been employed for a total of at least twelve (12)
months with Employers signatory to this Agreement and has worked for a covered
Employer at least 1,250 hours over the previous 12 months shall be entitled to
12 weeks of unpaid leave of absence consistent with the provisions of the Family
and Medical Leave Act of 1993 for any of the following reasons: 
a. because of the birth of a son or daughter of the Employee and in order to
care for the son or daughter;
b. because of the placement of a son or daughter with the Employee
for adoption or foster care; 
c. in order to care for the spouse, or a son, daughter, or parents, of the 
Employee, if such a spouse, son, daughter, or parent has a serious health 
condition; 
d. because of a serious health condition that makes the Employee unable to
perform the functions of his job.
Such leave may be taken on an intermittent or reduced basis for the birth or
adoption of a child if the arrangement is approved by the Employer in advance.
Leave for serious health conditions - either of a family member of the Employee
or of the Employee - may be taken intermittently or on a reduced schedule if
such leave is medically necessary.
(2) During the period of all leaves of absence covered by this section, the
Employee shall continue to accrue seniority, vacation, pension, and all other
employment benefits provided by this Agreement. Health care and dental care
shall continue during the leave of absence.
(3) An Employee who intends to take unpaid leave under the FMLA should give the
Employer advance notice of his or her intention to take FMLA leave 30 calendar
days before the leave is to commence. Where the need for FMLA leave is not
foreseeable 30 days before the leave is to commence, the Employee shall give the
Employer notice of the Employee's intent to take unpaid FMLA leave as soon as
practicable upon learning of the need for FMLA leave. Nothing in this provision
shall diminish an Employee's rights to paid leave under this Agreement,
regardless of whether the paid leave might also qualify as FMLA leave.
(4) In the event that a request for leave is made by an Employee eligible for
leave under the Family and Medical Leave Act of 1993, the following shall apply:
     a. Unpaid Leave


<PAGE>   39


Family and medical leave is unpaid leave, except as provided in subsection (b)
below.
     b. Use of Paid Leave 
(1) If an Employee requests leave based on the birth or adoption of a son or
daughter or the need to care for a sick parent, son, daughter or spouse, the
Employee shall first substitute all of the Employee's accrued vacation and
personal leave for leave available under the Family and Medical Leave Act. Such
paid leave shall count toward the Employee's 12-week leave entitlement.
(2) If an Employee requests leave based on the Employee's own serious health
condition or the serious health condition of the parent, spouse, son or
daughter, the Employee shall first substitute all of the Employee's accrued
vacation, personal and sick leave, and, if eligible, sickness and accident
benefits, for leave available under the Family and Medical Leave Act. Such leave
shall count toward the Employee's 12-week leave entitlement.
     c. Miscellaneous
An Employee shall be entitled to only such family and medical leave as required
by the Family and Medical Leave Act and any applicable laws of the State in
which the Employee is employed. Nothing herein waives or limits the rights that
Employers have under the Family and Medical Leave Act including, but not limited
to, the right to require medical certifications to support requests for leave
and for return to work, to transfer temporarily Employees taking intermittent
leave, and to designate, where permissible, leave taken by Employees as leave
under the Family and Medical Leave Act.
Article X-WAGE INCREASE
Each Employee covered by this Agreement shall receive a wage increase in
accordance with the schedule below:
Effective Date Wage Increase
January 1, 1998     $0.40 per hour 
January 1, 1999     $0.30 per hour 
January 1, 2000     $0.30 per hour 
The above wage increases are already included in the standard hourly and daily
wage rate set forth in Appendix A.
Each active Employee who is working on December 1, 2000 shall receive a lump sum
wage payment of $600 on the first payday in December 2000. Each active Employee
who is working on December 1, 2001 shall receive a lump sum wage payment of $600
on the first payday in December 2001.
Article XI-SICKNESS AND ACCIDENT BENEFITS
Section (a) General Purpose
The general purpose of the Sickness and Accident Benefits Plan established by
this Article is to protect Employees against financial hardship resulting from
sickness or accident suffered on or off the job, by providing compensation for
earnings lost.
Section (b) Eligibility
Any Employee with six (6) months or more of classified employment with the
Employer who becomes disabled as a result of sickness or accident (including
pregnancy-related disability), so as to be prevented from performing his regular
classified job, and whose disability is certified by a physician legally
licensed to practice medicine, shall be eligible to receive Sickness and
Accident Benefits under this Plan. An Employee whose disability is the result of
a mine accident suffered while he has been a classified Employee of the


<PAGE>   40


Employer shall be eligible to receive Sickness and Accident Benefits effective
with his first day of classified employment. Benefits will not be payable for
any period during which the Employee is not under the care of a licensed
physician. 
For the purposes of this Article, "classified employment" means employment in 
a classified job which has not been broken by quitting, discharge, retirement, 
or refusal to return to work following layoff pursuant to the terms of Article 
XVII. 
Benefits shall not be payable in the event that the Employee's employment had
been terminated, or if he was laid off or was granted a leave of absence prior
to his disability, or in the event that his disability is the direct result of
an injury suffered prior to his employment with the Employer or while the
Employee is engaged in employment other than classified employment with his
Employer.
Benefits shall be terminated in the event that the Employee (1) receives a
pension pursuant to Article XX; (2) receives Social Security old-age benefits;
(3) accepts employment with another signatory Employer or with any employer not
signatory to this Agreement; or (4) voluntarily severs employment with his
Employer.
If, during a period when an Employee receiving Sickness and Accident Benefits is
recovering from his disability, his Employer offers him a light-duty classified
job, the Employee shall have the option to accept such employment, and Sickness
and Accident Benefits shall terminate if he does so. For the purposes of this
Article, "light-duty" shall be defined as including any job in which
occupational hazards, lifting of weights, and exposure to extremes of
temperature, dampness, and dust are substantially less than those of the job
held by the Employee at the time of his disabling accident or illness.
Section (c) Commencement and Duration of Benefits 
Sickness and Accident Benefits shall begin with the first day of disability
resulting from an accident, and with the eighth day of disability resulting from
sickness, except that if the Employee is hospitalized because of a disabling
sickness requiring surgical treatment or intensive care, benefits shall begin
with the first full day of hospitalization. Benefits for disability resulting
from an accident, either on or off the job, shall be payable for a maximum of 52
weeks, regardless of the length of the Employee's classified employment with the
Employer at the time of the accident.
Benefits for disability resulting from sickness shall be payable according to
the following schedule:
     Length of Classified Maximum 
     Employment with the Employer       Number of 
     at Date Disability Commences       Weeks 
At least 6 months but less than 1 year       6 
At least 1 year but less than 5 years        13 
At least 5 years but less than 10 years      26
At least 10 years but less than 15 years     39 
15 years or more                             52 
If an Employee returns to work after receiving Sickness and Accident Benefits
for less than the maximum number of weeks to which he is entitled, and is then
absent again within 90 days due to the same sickness or accident which disabled
him originally, there shall be no waiting period for benefits payable during the
remaining weeks of his eligibility but the period during which he again receives
benefits will be considered with



<PAGE>   41


the first period as one continuous period of disability. If the second absence
results from a different sickness or accident, the first absence does not affect
the duration of benefits for which the Employee shall be eligible for the second
absence. If the Employee returns to work for 90 calendar days between two
periods of disability, the second period shall not be considered as being due to
the same sickness or accident as the first disability.
A change in the cause of the Employee's disability during a continuous period of
absence from work on account of disability does not extend the maximum duration
of Sickness and Accident Benefit payments.
In the event that an Employee becomes disabled prior to the commencement of a
strike or work stoppage, his eligibility for benefits shall not be affected by
the strike or work stoppage. In the event that an Employee becomes disabled
during a strike or work stoppage, the seven-day waiting period, if applicable,
will run, but the Employee shall not be entitled to receive benefit payments for
any day of disability during the strike or work stoppage.
Section (d) Amount and Payment of Benefits 
The amount of Sickness and Accident Benefits payable under this Plan shall be
$260 per week for disabilities occurring during the first two years of this
Agreement commencing on the Effective Date hereof; $270 per week for
disabilities occurring during the third, fourth and fifth years of this
Agreement. All weekly benefit payments shall be prorated over a seven-day week
(Monday through Sunday).
Benefits shall be reduced by deducting any or all of the following forms of
compensation to the extent that they are applicable to and are payable for the
same sickness or accident and the same period for which the Employee qualifies
for Sickness and Accident Benefits under this Plan: (1) Workers' Compensation
benefits for temporary or permanent disability, including state Black Lung
benefits; (2) State or Federal disability benefits, exclusive of veterans'
benefits; (3) Social Security primary disability insurance benefits; and (4)
Federal Black Lung benefits.
Payment of Sickness and Accident Benefits shall not be made for any days during
an Employee's disability for which he receives wage allowances pursuant to this
Agreement, but the duration of Sickness and Accident Benefits for which the
Employee is eligible shall be extended by an equal number of days.
Payment of benefits shall be made by check every two weeks, for all days during
the preceding two weeks in which the Employee was eligible for benefits. 
Section (e) Filing of Claims for Benefits
To be eligible for payment of benefits, the Employee must give written notice of
disability to the Employer, including certification by a licensed physician upon
request by the Employer, within 21 days after the day claimed as the first day
of disability. If, however, the Employee is unable to give such notice within
the 21-day period due solely to physical incapacitation and notice is
subsequently given by the Employee when his physical condition improves
sufficiently to allow him to give such notice or have it furnished by someone
else on his behalf, this 21-day limitation will not apply. The Employer shall be
responsible for promptly forwarding the Employee's claim to an acceptable
insurance carrier as described in section (f) of this Article, unless the
Employer elects to provide benefits directly, in which case any undisputed claim
shall be paid within fourteen days of receipt of the Employee's claim.


<PAGE>   42


Section (f) Structure and Administration 
The establishment, administration, and operation of the Sickness and Accident
Benefits Plan shall be the joint responsibility of the Employers and the Union.
The Trustees of the United Mine Workers of America Health and Retirement Funds
as defined in Article XX shall prepare and make available to the Employers and
the Union a list of at least five (5) and initially not more than fifteen (15)
acceptable insurance carriers, based upon scrutiny of model plans provided by
the respective carriers and such other criteria as the Trustees may deem
pertinent. Subsequent thereto, the Trustees may add additional carriers to the
list at their discretion. Upon the approval of the Employers, this list shall be
distributed to all signatory Employers. Each Employer shall be solely and
individually responsible for provision of the benefits set forth in this
Article, either directly or through such of the acceptable insurance carriers as
he may designate. If an Employer elects to provide benefits directly, he shall
notify the Trustees and shall file with the Trustees an agreement to conform to
the purposes and objectives of this Plan. The Employer or his insurance carrier
shall have the right to take reasonable steps to investigate the factual aspects
of an Employee's claim, including examination of the Employee by a physician at
the Employer's or carrier's expense, in the event of a dispute over medical
evidence. A dispute unresolved after such investigation shall be subject to
resolution at the fourth step of the grievance procedure as set forth in Article
XXIII (Settlement of Disputes). A representative of the Department of
Occupational Health of the International Union shall have the right to assist a
grievant.
The Trustees shall have the right to investigate fully any or all disputed
claims in order to establish consistency of coverage and of the awarding of
claims and benefits. Based upon such investigation, the Trustees shall, at the
end of the first 12 months experience with this Plan, prepare a report to the
Employers and the Union and shall, pursuant to such report, prepare a revised
list of acceptable insurance carriers, based upon the experience of the
preceding year. The list may be further revised thereafter at the discretion of
the Trustees. The Trustees shall have the power to remove any insurance carrier
from the list for failure to provide the benefits described in this Article in a
manner consistent with the terms of the Plan, and, in the event that an
insurance carrier is so removed, it shall be the responsibility of any affected
Employer to cancel any policy or policies he may have with any such disqualified
insurance carrier, and to replace such policy or policies with a policy or
policies provided by an acceptable insurance carrier, not less than 30 days
after notification by the Trustees.
If, on the basis of their investigation of disputed claims, the Trustees find
evidence that an Employer who elects to provide benefits directly has done so in
a manner inconsistent with the terms of the Plan, the Trustees shall first
inform such Employer and shall request that he establish coverage through any of
the acceptable insurance carriers that he may designate. If the Employer fails
to do so, and if the Trustees find that he is continuing to provide benefits in
a manner inconsistent with the terms of the Plan, the Trustees may take such
action as they deem necessary, including any and all legal means, to enforce
compliance with the terms and objectives of the Plan.
In the event that a carrier makes available additional or extended coverage
based upon Employee payment of premiums, or an Employee chooses to seek such
coverage from another carrier, nothing in this Article shall be construed as
prohibiting such voluntary


<PAGE>   43


expansion of coverage. At the request of the Employee, and in accordance with
the terms of Article XV (Checkoff), the Employer shall deduct such premium
payments. 
Article XII-HOLIDAYS 
Section (a) Holidays Observed 
The following holidays shall be observed during the term of this Agreement:
DURING THE FIRST YEAR OF THIS AGREEMENT, there shall be eleven (11) paid
holidays: New Year's Day (January 1, 1998); 8-Hour-Day Holiday (April 1, 1998);
Memorial Day (observed on May 25, 1998); Independence Day (July 4, 1998); Labor
Day (September 7, 1998); Veterans' Day (November 11, 1998); Thanksgiving Day
(November 26, 1998); Friday after Thanksgiving (November 27, 1998); Christmas
Eve (December 24, 1998, in honor of Jock Yablonski); Christmas Day (December 25,
1998); and in honor of John L. Lewis, the Employee's birthday.
DURING THE SECOND YEAR OF THIS AGREEMENT, there shall be eleven (11) paid
holidays: New Year's Day (January 1, 1999); 8-Hour-Day Holiday (April 1, 1999);
Memorial Day (observed on May 31, 1999); Independence Day (July 4, 1999); Labor
Day (September 6, 1999); Veterans' Day (November 11, 1999); Thanksgiving Day
(November 25, 1999); Friday after Thanksgiving (November 26, 1999); Christmas
Eve (December 24, 1999, in honor of Jock Yablonski); Christmas Day (December 25,
1999); and in honor of John L. Lewis, the Employee's birthday.
DURING THE THIRD YEAR OF THIS AGREEMENT, there shall be eleven (11) paid
holidays: New Year's Day (January 1, 2000); 8-Hour-Day Holiday (April 1, 2000);
Memorial Day (observed on May 29, 2000); Independence Day (July 4, 2000); Labor
Day (September 4, 2000); Veterans' Day (November 11, 2000); Thanksgiving Day
(November 23, 2000); Friday after Thanksgiving (November 24, 2000); Christmas
Eve (December 24, 2000, in honor of Jock Yablonski); Christmas Day (December 25,
2000); and in honor of John L. Lewis, the Employee's birthday.
DURING THE FOURTH YEAR OF THIS AGREEMENT, there shall be eleven (11) paid
holidays: New Year's Day (January 1, 2001); 8-Hour-Day Holiday (April 1, 2001);
Memorial Day (observed on May 28, 2001); Independence Day (July 4, 2001); Labor
Day (September 3, 2001); Veterans' Day (November 11, 2001); Thanksgiving Day
(November 22, 2001); Friday after Thanksgiving (November 23, 2001); Christmas
Eve (December 24, 2001, in honor of Jock Yablonski); Christmas Day (December 25,
2001); and in honor of John L. Lewis, the Employee's birthday.
DURING THE FIFTH YEAR OF THIS AGREEMENT, there shall be the following paid
holidays: New Year's Day (January 1, 2002); 8-Hour-Day Holiday (April 1, 2002);
Memorial Day (observed on May 27, 2002); Independence Day (July 4, 2002); Labor
Day (September 2, 2002); Veterans' Day (November 11, 2002); Thanksgiving Day
(November 28, 2002); Friday after Thanksgiving (November 29, 2002); Christmas
Eve (December 24, 2002, in honor of Jock Yablonski); Christmas Day (December 25,
2002); and in honor of John L. Lewis, the Employee's birthday.
Section (b) Sunday Holidays 
If any of the foregoing holidays, except the birthday holiday, fall on a Sunday,
it shall be celebrated on the following Monday.
Section (c) Monday Holidays


<PAGE>   44


If any of the foregoing holidays, except the birthday holiday, are celebrated on
a Monday, work on the Saturday preceding the holiday is optional for the
Employees (except for those Employees covered by Section (o)(10) of Article III
(Health and Safety)).
Section (d) Pay for Holidays Worked 
Employees who work on the foregoing holidays, including designated birthday
holidays as provided in Section (g) below, will be paid triple time or triple
rates, for all time worked.
Section (e) Pay for Holidays Not Worked 
Employees who do not work on the foregoing holidays will be paid their regular
earnings for such day, including regularly scheduled overtime rates provided
such Employee was not absent his last scheduled day prior to or his first
scheduled day following the holiday because of an unauthorized work stoppage.
Section (f) Holidays During Vacation Period 
When a holiday occurs, other than a birthday holiday, during an Employee's
scheduled vacation, he shall be paid for the holiday not worked in addition to
his vacation pay and shall designate another day he wishes to take as a holiday.
Section (g) Birthday Holidays 
If the Employee's birthday occurs on a day when the mine or other facility at
which he is employed works, the Employee has the option of taking his birthday
off and receiving one shift of pay at his regular rate, including his regularly
scheduled overtime, or he has the option of working on his birthday and
receiving triple time for all time worked. 
If an Employee's birthday falls on any day on which he is not scheduled to 
work, including but not limited to February 29 or on any other scheduled 
holiday or during the vacation period or on a Saturday or Sunday, he may 
designate another day to celebrate his birthday holiday by electing one of the 
following: 
(1) designating another day to be off (and taking off such day) within the 
first ten (10) days of actual work by the Employee following the birthday 
holiday for which he shall be entitled to his regular rate, including regularly
scheduled overtime, or 
(2) designating another day to work (and working such day) within the first ten 
(10) days of actual work by the Employee following the birthday holiday for 
which he shall be entitled to triple time, which is three times his straight 
time rate, for all time worked on that day.
Section (h) Holidays for Sick and Injured 
An Employee forced to cease work because of injury or personal illness, 
including coal workers' pneumoconiosis, will for one (1) year following such
injury or illness be compensated for all holidays when due occurring during the
following 364 days provided he establishes medical proof of illness or injury. 
Section (i) Time of Payment
Payment for holidays not worked shall be included with pay for the pay period
in which the holiday occurs. 
Article XIII-REGULAR VACATION  
Section (a) Annual Vacation 
An annual regular vacation of fourteen consecutive days shall be the rule of 
the industry. To assure consumers of a continued supply of coal and extend 
employment opportunities, there will be three separate regular vacation periods.



<PAGE>   45


Section (b) Dates of Regular Vacation Period 
(1) Beginning at 12:01 a.m. on Saturday, June 27, 1998, and ending at 12:01 a.m.
on Saturday, July 11, 1998; or beginning at 12:01 a.m. on Saturday, July 11,
1998, and ending at 12:01 a.m. on Saturday, July 25, 1998; or beginning at 12:01
a.m. on Saturday, July 25, 1998, and ending at 12:01 a.m. on Saturday, August 8,
1998.
(2) Beginning at 12:01 a.m. on Saturday, June 26, 1999, and ending at 12:01 a.m.
on Saturday, July 10, 1999; or beginning at 12:01 a.m. on Saturday, July 10,
1999, and ending at 12:01 a.m. on Saturday, July 24, 1999; or beginning at 12:01
a.m. on Saturday, July 24, 1999, and ending at 12:01 a.m. on Saturday, August 7,
1999.
(3) Beginning at 12:01 a.m. on Saturday, June 24, 2000, and ending at 12:01 a.m.
on Saturday, July 8, 2000; or beginning at 12:01 a.m. on Saturday, July 8, 2000,
and ending at 12:01 a.m. on Saturday, July 22, 2000; or beginning at 12:01 a.m.
on Saturday, July 22, 2000, and ending at 12:01 a.m. on Saturday, August 5,
2000.
(4) Beginning at 12:01 a.m. on Saturday, June 23, 2001, and ending at 12:01 a.m.
on Saturday, July 7, 2001; or beginning at 12:01 a.m. on Saturday, July 7, 2001,
and ending at 12:01 a.m. on Saturday, July 21, 2001; or beginning at 12:01 a.m.
on Saturday, July 21, 2001, and ending at 12:01 a.m. on Saturday, August 4,
2001.
(5) Beginning at 12:01 a.m. on Saturday, June 22, 2002, and ending at 12:01 
a.m. on Saturday, July 6, 2002; or beginning at 12:01 a.m. on Saturday, July 6, 
2002, and ending at 12:01 a.m. on Saturday, July 20, 2002; or beginning at 
12:01 a.m. on Saturday, July 20, 2002, and ending at 12:01 a.m. on Saturday, 
August 3, 2002.
(6) The Employer must make a separate written declaration for each mine he
operates setting forth which vacation period he has elected to take. This
declaration must be filed with the president of the respective UMWA District in
which the mine or mines are located by May 15 of the years 1998, 1999, 2000,
2001 and 2002.
Section (c) Staggered Regular Vacation 
To further assure a continued supply of coal and extend employment opportunities
any Employer may, irrespective of past practice to the contrary, operate his
mine without interruption and schedule regular vacations of fourteen days for
each Employee at his mine during the calendar year. In the event the Employer
elects to operate his mine without interruption, he must file a written
declaration with the president of the respective UMWA District in which the mine
is located by January 1 of the years 1998, 1999, 2000, 2001 and 2002.
Should the Employer elect to operate his mine without interruption, vacation
periods shall be scheduled by the Employer at the times desired by individual
Employees so long as this will not interfere with efficient operations as
determined by the Employer and so long as not more than 15 percent of the work
force at a mine elects to be off on the same day. Should there be a conflicting
choice of vacation between two or more Employees, the choice will be determined
on a seniority basis. Each Employee shall have as much advanced notice of his
scheduled vacation as practicable. Employees, at their option, may take vacation
in one-week segments.
Section (d) Qualifying Period and Amount of Payment 
(1) Qualifying Period: All Employees with a record of one year's standing from
June 1, 1997, to May 31, 1998, shall receive as compensation for the 1998
vacation period the sum of twelve times the Employee's day wage rate; all
Employees with a record of one



<PAGE>   46


year's standing from June 1, 1998, to May 31, 1999, shall receive as
compensation for the 1999 vacation period the sum of twelve times the Employee's
day wage rate; all Employees with a record of one year's standing from June 1,
1999, to May 31, 2000, shall receive as compensation for the 2000 vacation
period the sum of twelve times the Employee's day wage rate; all Employees with
a record of one year's standing from June 1, 2000, to May 31, 2001, shall
receive as compensation for the 2001 vacation period the sum of twelve times the
Employee's day wage rate; and all Employees with a record of one year's standing
from June 1, 2001 to May 31, 2002 shall receive as compensation for the 2002
vacation the sum of twelve times the Employee's day wage rate with the following
exception:
Employees who enter or return from the armed services to their jobs during the
qualifying period shall receive the full regular vacation due for the period in
question. The Employee's regular vacation wage will be his regular standard
daily wage rate, including any regularly scheduled overtime, at the time his
vacation is due as set forth below.
(2) Shift Differentials: Shift differentials are included in the calculation of
vacation pay. For Employees who rotate all three shifts, add the shift
differential of 30(cent) for the afternoon shift and 40(cent) for the midnight
shift and then divide the total of 70(cent) by three to arrive at an average of
23 1/3(cent) per hour shift differential. For Employees who only rotate the day
and afternoon shifts, take the afternoon shift differential of 30(cent) and
divide by two to arrive at an average of 15(cent) an hour shift differential.
(3) Sick and Injured Employees: All the terms and provisions of district
agreements relating to vacation pay for sick and injured Employees are carried
forward to this Agreement and payments are to be made in the sum as provided
herein.
(4) Pro Rata Payments: Pro rata payments of regular vacation for the months they
are on the payroll shall be provided for those Employees who are given
employment or who leave their employment during the qualifying period. 
Section (e) Floating Vacation Days
For the calendar years of 1998, 1999, 2000, 2001 and 2002, each active Employee
with one year of continuous employment with the Employer shall be entitled to
four (4) additional days of paid vacation.
The provisions of paragraphs (2), (3) and (4) of section (d) shall apply to this
section. Floating Vacation Days will be taken in accordance with one of the
following options which shall be determined at the election of the Employer at
each facility covered by this Agreement. If the Employer elects the Christmas
Shutdown Period, notice must be given no later than November 15 of the year
preceding the year for which such election shall apply, otherwise Floating
Vacation Days will be taken on a daily basis for that year. Any such declaration
pertaining to the year 1998 shall be made no later than January 10, 1998, and
shall include any declaration made on or before November 15, 1997. Any such
declaration pertaining to the year 2003 shall be binding for the remainder of
this Agreement but shall be subject to the governing provisions of any successor
agreement to this Agreement.
(1) Daily Basis 
Floating Vacation Days shall be taken either on a consecutive or nonconsecutive
day basis at such times as desired by the Employee so long as approved by the
Employer at least 30 days in advance, and in accordance with the principles of
section (c) of this


<PAGE>   47


Article. Subject to said notice and approval, an Employee shall not be denied
the opportunity to take these days at some time during the calendar year in
which they are due.
(2) Christmas Shutdown Period 
During 1998, three (3) Floating Vacation Days shall be used with the Christmas 
Eve and Christmas Day Holidays to provide for a shutdown period beginning at 
12:01 a.m., Monday, December 21, 1998, and ending 12:01 a.m., Saturday, 
December 26, 1998. During 1999 and 2000, four (4) Floating Vacation Days shall 
be used with the Christmas Day Holiday to provide for a shutdown period 
beginning at 12:01 a.m., Monday, December 20, 1999, and ending 12:01 a.m., 
Saturday, December 25, 1999; beginning at 12:01 a.m., Monday, December 25, 
2000, and ending 12:01 a.m., Saturday, December 30, 2000. During 2001 and 2002, 
three (3) Floating Vacation Days shall be used with the Christmas Eve and 
Christmas Day Holidays to provide for a shutdown period beginning at 12:01 a.m.,
Monday, December 24, 2001, and ending 12:01 a.m., Saturday, December 29, 2001; 
beginning at 12:01 a.m., Monday, December 23, 2002, and ending 12:01 a.m., 
Saturday, December 28, 2002. In any year in which the Christmas Shutdown Period 
is elected, any Employee who is entitled to a Floating Vacation Day more than 
the number of such Floating Vacation Days used to schedule the Christmas 
Shutdown Period shall have such excess Floating Vacation Day treated as an 
additional Personal or Sick Leave Day for that year to be taken in accordance
with Article IX, Section (e). Any Employee who is eligible for fewer than the
number of Floating Vacation Days used during the Christmas Shutdown Period will
be paid only for the number of days eligible (plus the Holidays) and shall
observe the remaining days as excused time off without pay. Under either of the
above options, if at the end of any calendar year an Employee has not exhausted
the paid Floating Vacation Days for which he becomes eligible under this
Section, he shall receive pay in lieu of such unused Floating Vacation Days at
his regular rate, including regularly scheduled overtime. His regular rate
shall be the rate in effect at the end of such calendar year for the payroll
period which includes the last workday of the calendar year. If the Employee
does not want to receive pay in lieu at the end of the calendar year, he may
carry over into the next calendar year no more than four (4) floating vacation
days for which he has not been paid. Any such days carried over, however, can
be used only for leave pursuant to the Family and Medical Leave Act of 1993, or
the Employee may elect to receive pay in lieu at the end of the calendar year.
No Employee may accumulate more than eight (8) floating vacation days in any
calendar year. 
Section (f) Time of Payment
The vacation payment shall be made on the last pay day immediately preceding the
beginning of the respective vacation periods. Employees who leave their
employment during the qualifying period shall receive their pro rata share of
vacation payment at the time they sever their employment. In the event any
Employer should sell, lease, transfer, assign or otherwise dispose of his mine,
he shall pay to each of his Employees his pro rata share of vacation payment on
the day of such sale, assignment or lease. 
Section (g) Obligation for Payment
Failure of any Employer signatory hereto to make full and prompt payment of the
amounts required hereby, in the manner and on the dates herein provided, shall
at the


<PAGE>   48


option of the Union, be deemed a violation of this Agreement. This obligation of
each Employer which is several and not joint, to so pay such sums, shall be a
direct and continuing obligation of said Employer during the life of this
Agreement; and it shall be deemed a violation of this Agreement if any mine, to
which this Agreement is applicable, shall be sold, leased, subleased, assigned
or otherwise disposed of for the purpose of avoiding the obligation hereunder.
Section (h) Work During Shutdown 
During Christmas Shutdown Periods, and in cases where an Employer elects not to 
stagger vacations, but to close down its mining operations, Employees required 
to work at coke plants and other necessarily continuous operations on emergency 
or repair work, including the removal of overburden, and the loading and 
shipping of coal previously mined and processed shall have vacations at other 
agreed periods. Employees who are required to work during a regular vacation 
shutdown shall be assured of taking their regular vacation during the months of 
June, July or August, if they so desire. Should there be a conflict in 
alternative vacation periods between two or more Employees, the choice shall be 
determined on the basis of seniority.
Article XIV-GRADUATED VACATION 
Section (a) General 
Any Employee who has performed work in the calendar year and who had the length
of continuous employment [see section (d) below] with the Employer specified in
the table below, shall be entitled to the corresponding additional vacation days
each year with pay subject to the following provisions of this Article.
                 Additional 
                  Days per 
Length of Continuous Employment year 
6 years but less than 7 years      1 day 
7 years but less than 8 years      2 days
8 years but less than 9 years      3 days 
9 years but less than 10 years     4 days 
10 years but less than 11 years    5 days 
11 years but less than 12 years    6 days 
12 years but less than 13 years    7 days 
13 years but less than 14 years    8 days 
14 years but less than 15 years    9 days 
15 years but less than 16 years    10 days 
16 years but less than 17 years    11 days 
17 years but less than 18 years    12 days 
18 years or over       13 days
Section (b) Definition of Additional Days
For the purposes of this Article, "additional vacation days" means Monday
through Friday "working days."
Section (c) Definition of Continuous Employment 
(1) For the purposes of this Article "continuous employment" means employment
which has not been broken by voluntary quitting, discharge, retirement or a
final determination


<PAGE>   49


of permanent and total disability under federal and/or state laws which provide
compensation therefor.
(2) Continuous employment is NOT interrupted or broken by layoff. Therefore,
time spent on an idle panel is counted in determining length of continuous
employment. However, continuous employment is broken by refusal to return to
work when there is available employment at the mine for those on said panel in
accordance with the provisions of Article XVII (Seniority).
(3) Continuous employment is NOT interrupted or broken by transfers from one
mine of the Employer to another mine of the same Employer.
(4) Continuous employment is NOT interrupted or broken by the sale, lease,
sublease or assignment of any mine to which this Agreement is applicable for
Employees who are continued in employment or reemployed from the idle panel by
the successor company.
Section (d) Amount of Continuous Employment 
The amount of continuous employment, or number of additional vacation days to
which an Employee is entitled, is determined by the number of years he has been
employed by the Employer as of May 31 of the year in which the graduated
vacation is due. (Example: the number of days in 1998 is determined by the
number of years he has been employed by the Employer as of May 31, 1998. The
number of days in 1999 is determined by the number of years he has been employed
by the Employer as of May 31, 1999 and so on).
Section (e) Time of Payment 
Graduated vacation payment shall be made on the last pay day immediately
preceding the beginning of the Employee's graduated vacation.
Section (f) Rate of Payment 
Graduated vacation payment will be based on the Employee's regular standard
daily wage rate including any regularly scheduled overtime at the time his
vacation payment is due, as provided in section (e) above, and shall include any
applicable shift differentials.
Section (g) Scheduling and Pay in Lieu 
Time for taking these additional days of graduated vacation shall be determined
between the Employee and Employer but will be taken in the calendar year in
which they are due unless the Employer and Employee agree that the latter may
elect to be paid in lieu of taking them. Subject to such determination and said
election, an Employee shall not be denied the opportunity to take these days at
some time during the calendar year in which they are due.
Section (h) Sick and Injured Employees 
An Employee forced to cease work due to injury or illness will be paid his FULL
graduated vacation payment for the calendar year in which he ceases work and his
FULL graduated vacation payment for the calendar year in which he returns to
work.
Article XV-CHECKOFF
The membership dues, including initiation fees, and assessments of the United
Mine Workers of America and its various subdivisions, credit union, voluntary
COMPAC contributions and other voluntary deductions, and Union-sponsored group
auto insurance, as authorized and approved by the International Union, United
Mine Workers of America, shall be checked off the wages of the Employees by the
Employers covered by this contract and shall be remitted by the Employers to the
properly designated officers of the Union for distribution to its various
branches. Such remittance shall be made within


<PAGE>   50


30 days of the date such amount has been checked off. The Employer shall also
submit an itemized statement showing the name of each Employee, his Social
Security number, hours worked, and the amount checked off for dues, initiation
fees, and assessments. Such itemized statement shall be made within 60 days of
the date the checkoff has been made, and shall include a list of Employees from
whom dues, initiation fees and assessments have not been collected.
In order that this section may become effective and operate within the
limitations of the Labor-Management Relations Act of 1947, the Union hereby
agrees to furnish, with all reasonable dispatch to the respective Employers, and
the Employers agree to aid, assist and cooperate in obtaining, written
authorizations from each Employee so employed. Upon the presentation to the
Employers of such authorizations in such reasonable form as time and
circumstances, looking to the continuous and uninterrupted production of coal,
may allow, said Employers shall make deductions so authorized and deliver the
same to the designated District officer of the Union or to such authorized
representative as may be designated by the Union.
Article XVI-TRAINING 
Section (a) Priority 
The parties agree that the establishment of effective training programs for
Employees is essential to safe and efficient production of coal. Toward that end
the Joint Industry Training Committee shall be continued and shall consist of
three (3) representatives appointed by the United Mine Workers of America and
three (3) representatives of the industry, appointed by the Bituminous Coal
Operators' Association. This Committee shall meet primarily for the purpose of
fostering and promoting the advancement of effective training in the industry.
The Joint Industry Committee will give special attention to the problems of
Employers operating three (3) or fewer mines and aid in devising training
programs for these companies that will permit them to institute effective
training programs without imposing undue hardships.
The International Union and the Bituminous Coal Operators' Association shall
each assign a trained staff representative to devote full time as long as needed
to assist the Joint Industry Training Committee and the Employers signatory
hereto in developing and implementing the various training programs provided for
herein.
Section (b) Orientation for New Employees 
(1) Orientation programs for new Employees, regardless of prior experience shall
remain in effect, subject to the Employer's right to modify, during the life of
this Agreement. Each program shall be developed by the Employer and shall
emphasize health and safety with particular emphasis on local conditions and
associated hazards.
(2) Existing orientation programs shall be reviewed by the Employer jointly with
appropriate officials of the Union (including the local union health and safety
committee) upon the Union's request. Existing programs shall include the
elements listed in paragraph (3) of this section. Such review shall be carried
out within six (6) months of the effective date of this Agreement.
(3) An orientation program for underground mine Employees shall include at least
the following elements:


<PAGE>   51


(i) Introduction to mining including a complete tour of underground and surface
facilities; instruction and analysis of hazards encountered by inexperienced
Employees; instruction in safety laws and regulations and company safety rules
applicable to work of inexperienced Employees.
(ii) Description of the line of authority and responsibilities of supervisors
and of the authority and responsibilities of the mine health and safety
committee.
(iii) Procedures for entering and leaving the mine, including the check-in and
check-out system, and procedures regarding the transportation of Employees and
materials.
(iv) Escape and emergency evacuation plans.
(v) A review of the mine map with special attention to the escapeway system and
the location of abandoned and dangerous areas.
(vi) Instruction in the use, care and maintenance of the applicable self-rescue
device.
(vii) Instruction in the use, care and maintenance of personal protective
equipment.
(viii) Instruction regarding roof control, ventilation, rock dusting, dust and
noise control plans and procedures at the mine.
(ix) Instruction in first-aid fundamentals, including artificial respiration,
control of bleeding and treatment for shock.
(x) Instruction in the recognition and avoidance of electrical hazards.
(xi) Instruction regarding use of the mine communication system and the meaning
of warning and directional signs.
(xii) Instruction in the prevention of haulage accidents.
(xiii) Instruction in the detection of methane.
(xiv) Instruction regarding general accident prevention.
(4) An orientation program for surface mine Employees or for surface area
Employees of an underground mine shall include at least the following elements:
(i) Introduction to mining including a complete tour of the surface coal mine or
the surface areas of the underground mine; instruction in and analysis of
hazards encountered by inexperienced Employees; instruction in safety laws and
regulations and company safety rules applicable to the work of inexperienced
Employees.
(ii) Description of the line of supervisory authority and responsibilities and
the authority and responsibilities of the mine health and safety committee.
(iii) Instruction in the use, care and maintenance of personal protective
equipment.
(iv) Instruction in first-aid fundamentals, including artificial respiration,
control of bleeding, and treatment of shock.
(v) Instruction regarding plans and procedures for working safely in areas of
highwalls, pits and spoil banks.
(vi) Instruction in the recognition and avoidance of electrical hazards.
(vii) Instruction in the safe operation of haulage and conveyor systems, in use
at the mine.
(viii) General instruction in the prevention of accidents.
(ix) Instruction in use of the mine communication system and the meaning of
warning signals and directional signs.
(x) Instruction in the current laws and regulations applicable to the tasks and
work assignment of the individual Employee.
(5) Orientation programs for Employees at underground mines, surface mines and
surface areas of underground mines, shall be not less than four (4) days for
inexperienced


<PAGE>   52


Employees and not less than one day for experienced Employees. New Employees
shall be paid for time spent in orientation programs at the lowest classified
rate.
(6) The parties recognize that there may be approved state or federal
preemployment programs which cover some of the basic aforementioned elements. In
those particular cases where such programs exist, the company may adjust its
program so that there shall be no duplication of training, provided that the
number of days of orientation required by this Agreement shall not be affected.
Section (c) General Retraining Programs
(1) Retraining programs shall remain in effect, subject to the Employer's right
to modify, during the life of this Agreement. Each program shall be developed by
the Employer and shall emphasize health and safety with particular emphasis on
local conditions and associated hazards. Every classified Employee shall
participate in a general retraining program at least once during the calendar
years 1998, 1999, 2000, 2001 and 2002.
(2) A retraining program at an underground mine shall include at least the
following elements:
(i) Instruction regarding the roof control plans in effect at the mine and
procedures for roof and rib control.
(ii) Instruction regarding procedures for maintaining ventilation and control of
ventilation.
(iii) Instruction regarding proper procedures for working on and near moving
equipment.
(iv) Instruction regarding proper procedures for riding on and in mine
conveyances and the controls in effect for the transportation of Employees and
materials.
(v) Instruction in the recognition and avoidance of electrical hazards.
(vi) Instruction in the fundamentals of first-aid.
(vii) Instruction in the use, care and maintenance of the applicable self-rescue
device.
(viii) Instruction regarding the escape and emergency evacuation plans,
including references to mine maps, main escapeway maps and working section
escapeway maps.
(ix) Instruction regarding use of the mine communication system and the meaning
of warning and directional signs.
(x) Instruction in the current laws and regulations applicable to tasks and work
assignment of the individual Employee.
(3) A retraining program at a surface mine or surface area of an underground
mine shall include at least the following elements:
(i) Instruction in the fundamentals of first-aid.
(ii) Instruction regarding plans and procedures for working safely in areas of
highwalls, pits and spoil banks.
(iii) Instruction regarding procedures for escape and evacuation.
(iv) Instruction regarding fire warning signals and fire-fighting procedures.
(v) Instruction in the recognition and avoidance of electrical hazards.
(vi) Instruction in the procedures for recognition and control of hazardous
gases and fumes.
(vii) Instruction in the safe operation of haulage and conveyor systems in use
at the mine.
(viii) Instruction regarding the safe work procedures for night-shift Employees.
(ix) General instruction in the prevention of accidents.
(x) Instruction regarding proper procedures for working on and near moving
equipment.


<PAGE>   53


(xi) Instruction regarding proper procedures for riding on and in mine
conveyances and the controls in effect for the transportation of Employees and
materials.
(xii) Instruction in use of the mine communication system and the meaning of
warning signals and directional signs.
(xiii) Instruction in the current laws and regulations applicable to the tasks
and work assignment of the individual Employee.
(xiv) Instruction in the proper operation of equipment for equipment operators.
(xv) Instruction in safe procedures for handling explosives for all Employees
who may be asked to handle explosives.
(4) The retraining program shall be not less than eight (8) hours for each
Employee in each calendar year and shall be presented in increments of not less
than two (2) hours. An Employee shall be paid for time spent in retraining
programs at the regular rate applicable to his classification.
Section (d) Safety Training for Specific Job 
After an Employee has been awarded a specific job through job
bidding before undertaking the duties of that job he shall receive a thorough
job briefing relative to the hazards of the job, including a trial run on the
machine or equipment under the direction of an experienced person. At each mine
the Employer shall develop a job briefing program for Employees who have been
awarded job bids. Emphasis shall be on health and safety aspects related to the
local conditions and hazards of the particular job. 
Section (e) Maintenance Training and Rate of Pay 
The Employer shall establish for each mine a program
for training Employees in maintenance jobs. Training vacancies may be posted as
Maintenance-Trainee or Electrician-Trainee according to the custom in the mine,
but in any event the training program shall include training in mechanical,
welding and electrical skills. Management shall select such Employees for
training on the basis of seniority and trainability as defined in section (g) of
this Article. The method of training shall be accomplished in consideration of
local variations from mine to mine but should in general employ techniques such
as progressive job tasks, on-the-job training and classroom training. Each
program shall also include a definitive progression of wages and a time schedule
which shall be applied on the basis of satisfactory performance. 
Vacancies for trainees shall be posted in accordance with actual anticipated
needs for developing maintenance skills. Where such skills are presently
available within the classified work force, vacancies shall be posted for the
job, as the case may be, and not for a trainee.
When an underground Employee is awarded a maintenance trainee job, the starting
rate of a trainee shall be at Wage Grade 2. The trainee shall progress to Wage
Grade 4 in a maximum of six months if he meets the job standards for the
maintenance job. The trainee shall remain at this rate for a maximum of twelve
(12) months at which time he progresses to Wage Grade 5 if his progress is such
as to meet the standards for the highest rated maintenance job. When a
maintenance trainee job is awarded for an outside or surface job (covered by
Appendix A, Part II and Part III), the applicable progression shall be Wage
Grades 2, 3, and 4.
If a trainee makes more rapid progress by meeting the standards of the program
and fully qualifies for the maintenance job before the end of the maximum
training period, that fact


<PAGE>   54


shall be recognized and if the Employee is assigned to and does perform the
highest rated maintenance job and the work associated therewith, he shall be so
classified and paid at such highest rate.
Section (f) New Inexperienced Employees at Underground Mines
No new inexperienced Employee in an underground mine hired after the date of
this Agreement with less than forty-five (45) working days prior underground
mining experience shall operate any mining machines at the face, or work on or
operate any transportation equipment, mobile equipment or medium or high voltage
electricity. All such new Employees shall always work in sight and sound of
another Employee for a period of forty-five (45) days. During this period the
new Employee shall be classified as a Trainee in order to permit him to gain
maximum familiarity with the work of the mine as a whole, but to minimize
exposure to hazards until more extensive experience in underground mining is
achieved. At the end of the forty-five (45) working day period, he shall be
eligible to bid on any vacancy that arises. Nothing in this section shall
authorize any practice more permissive than that established by any applicable
law or prior custom and practice.
Section (g) General Training Provisions
Any training program shall be conducted in accordance with the following
provisions:
(1) Each training program shall emphasize health and safety in addition to the
requirements of the job.
(2) Appropriate local and district officials of the Union (including the Mine
Health and Safety Committee) shall have the opportunity to review each training
program and make comments and suggestions prior to its implementation.
(3) The selection of Employees for training opportunities shall be in accordance
with seniority and trainability. Definition of Trainability-trainability shall
include a job-related determination of an Employee's ability to absorb the
training to be provided, the mental and physical capacity to ultimately perform
the job for which he is being trained. The job-related determination shall be
based on objective standards which may be an oral, written or work demonstration
of trainability for the specific job and the applicant for training may
establish his trainability by either oral, written or actual work demonstration
or any combination thereof as he may choose.
(4) While in training, management will make periodic evaluations of the
Employee's progress or lack thereof. An Employee who fails to complete the
training program shall be allowed to return to his prior job, but if it is not
available, to the general labor crew where he may bid on the vacancies to which
his seniority entitles him.
Section (h) Skills Enhancement Program
The Employer has the option to establish on a mine-to-mine basis, a program to
enhance the skills of its Employees to reduce, where appropriate, the number of
job classifications, job grades and job titles set forth in Appendices A and B.
Furthermore, Employees could be assigned to work within any job classification
or title developed as part of the program.
Any Skills Enhancement Program must be ratified by a majority vote of those
Employees covered by the program before it becomes effective. The International
Union and the Employer each pledge to cooperate in good faith to support the
implementation of these


<PAGE>   55


programs which improve skill levels and allow the Employer to fully utilize all
of the skills of its Employees. 
Article XVII-SENIORITY
Section (a) Definition of Seniority
Seniority at the mine shall be recognized in the industry on the following
basis: length of service and the ability to step into and perform the work of
the job at the time the job is awarded.
In awarding bids on job postings, the parties agree that management will not
show favoritism or discrimination. To help senior Employees achieve promotion,
they shall be given preference to the extent practicable in the filling of
temporary vacancies as set out in section (c) of Article XIX (Classification).
Section (b) Reduction; Realignment
(1) Reduction in Work Force 
In all cases where the working force is to be reduced, Employees with the 
greatest seniority at the mine shall be retained provided that they have the 
ability to perform available work.
(2) Realignment Procedure 
When the number of Employees within a job title is to be reduced or Employees 
are to be realigned, the following procedure shall apply:
(a) The senior Employees (mine seniority) in each job title shall be retained in
their respective job title, regardless of shift or portal, up to the number
needed in that job title.
(i) If, after such reduction of jobs within a job title, there is an excess of
jobs on any shift, that excess number of junior Employees (mine seniority) on
that shift will be displaced as to shift but retained within the job title.
(ii) Any Employee who is displaced as to shift within a job title will, to the
extent his seniority permits, be reassigned a shift on the basis of shift
preference, and for this purpose may displace any Employee junior to him (mine
seniority) on any shift within the job title. Any Employee so displaced will be
reassigned in the same manner. Any Employees not displaced as to shift under
this procedure will retain their pre-realignment shifts.
(b) Those Employees displaced from their job title shall be assigned available
jobs on the basis of mine seniority and ability to step in and perform the work
of the job at the time, using the following procedure:
(i) The senior Employee in each instance shall be assigned to the job grade
having the greatest standard daily wage rate and within which there is an
available job. However, if and only if by the end of the meeting required by
Section (c) of this Article XVII, the Union informs the Employer in writing that
any such displaced Employee wishes to waive the opportunity for the greatest
standard daily wage rate in favor of a particular shift, that preference shall
be followed to the extent the Employee's seniority permits. In order to be
prepared to so inform the Employer of such preference at any such meeting called
by the Employer, it is the responsibility of the Union to predetermine Employee
preferences.
(ii) Assignment of classifications and job titles within a job grade is within
the exclusive discretion of the Employer. However, where there is more than one
available job within that job grade, such assignments to the Employees to be
assigned within that grade will


<PAGE>   56


be made on the basis of retaining in that grade the maximum number of Employees
being so assigned who have the ability to step in and perform the available work
at that time.
(iii) Shift assignment, except as provided for by subparagraph (i) above, shall
be considered only after assignment of job titles has been completed. If within
a job title there are two or more shifts available, displaced Employees assigned
such job title shall be given shift preference based upon mine seniority.
(c) Any Employee who is not retained in his job title and who does not have the
ability to perform an available job under the above procedure shall, to the
extent his seniority permits, displace the least senior Employee at the mine
holding a job which such senior Employee has the ability to step into and
perform at that time. Any Employee displaced under this paragraph (c) shall have
the same rights under this paragraph (c). Employees not retained under this
procedure will be laid off.
(d) For purposes of this Realignment Procedure only, any Employee on sick or
injured status who otherwise has the ability to perform available work will not
be denied a job under this procedure solely because of his sick or injured
status.
(e) For purposes of this Realignment Procedure only, giving "shift preference" 
means that Employees will be assigned available jobs in the following 
descending order: (1) Day, (2) Afternoon, (3) Midnight, unless by the end of 
the meeting required by Section (c) of this Article XVII the Union informs the 
Employer in writing that a particular Employee has requested that some other 
preference be applied to him, in which case that other preference shall be 
followed. It is the responsibility of the Union to predetermine alternate 
shift preferences so as to be prepared to submit such alternate preferences at 
any such meeting called by the Employer.
Section (c) Layoff Procedure
In all cases where the working force is to be reduced or realigned, management
shall meet with the mine committee at least 24 hours in advance and review the
available jobs and the individuals to be laid off, retained or realigned.
Within five (5) days after an Employee is notified that he is to be laid off, he
must fill out a standardized form and submit it to mine management. On this
form, the laid-off Employee shall list: (1) his years of service at the mine;
(2) his years of service with the Employer; (3) his previous mining experience
with other Employers and the years of service with each; and (4) the jobs he is
able to perform and for which he wishes to be recalled. Additionally, the
Employee may also list, on the standardized form, (5) the mines of his Employer
within any UMWA district on whose panel he wishes his name to be placed.
Upon receipt of the completed form, the Employer shall within seven calendar
days, distribute a copy of the completed form to the Recording Secretary of the
Employee's local union and to the respective panel custodians of all mines
listed by the Employee at mines where he wishes his name to be placed on the
panel in accordance with the provisions of this section.
Section (d) Panels
Employees who are idle because of a reduction in the working force shall be
placed on a panel from which they shall be returned to employment on the basis
of seniority as outlined in section (a). A panel member shall be considered for
every job which he has


<PAGE>   57


listed on his layoff form as one to which he wishes to be recalled. Each panel
member may revise his panel form once a year.
Section (e) Panel Custodians
The superintendent of the mine and the Recording Secretary of the local union
shall be joint custodians of the panel records. It shall be the obligation of
the laid-off Employee to keep the custodians of all mine panels on which he is
entitled to place his name informed of any change of address and/or telephone
number where he may be regularly reached. Notice to the last known address of
the laid-off Employee by certified mail shall be sufficient notice of recall.
The Employee so notified may either accept or reject the job which is available;
but if the Employee rejects a job which he has listed as one to which he wishes
to be recalled or fails to respond within four calendar days after receipt of
such notice or accepts but fails to report for work in a reasonable time his
name shall be removed from the panel at that mine and he shall sacrifice his
seniority rights at that mine.
Section (f) Panel Members Accrue Seniority
Employees who are placed on a panel shall retain the seniority earned prior to
their layoff, and, in order to protect their relative seniority standing, will
continue to accrue seniority while on the panel. Laid-off Employees who place
their names on panels at other mines shall not accrue seniority on the mine
panels other than their own.
Section (g) Right to be Recalled
Any person on the panel list who secures casual or intermittent employment
during the period when no work is available for him at the operation shall in no
way jeopardize his seniority rights while engaged in such temporary employment.
However, any person on the panel list who secures regular employment at another
operation, or outside the industry, and does not return to work when there is
available employment at the mine for those on said panel, shall sacrifice his
seniority rights at the operation and shall have his name removed from the panel
list.
Section (h) Recall of Persons on Layoff Status
When a job or training vacancy at a mine exists which is not filled by Employees
within the active working force or from the mine panel, the panel custodians
will review the list of Employees on the panel from other mines and the Employer
shall recall to employment Employees on layoff status in the following order:
(1) If there are no Employees on the mine panel with the ability to perform the
work of the job, then, the Employer shall recall the senior Employee who has
such ability from the Employer's other mines within the same UMWA district who
has requested his name to be placed on the panel at that mine and has listed the
job to be filled as one for which he wishes to be recalled (length of service
with an Employer at a mine for purposes of this provision includes total years
of service with the Employer within the UMWA district);
(2) If there are no Employees on the mine panel or the District-Employer panel,
who have the ability to perform the work of the job, then, the Employer shall
recall the senior Employee from the Employer's other mines located in
geographically contiguous UMWA Districts who has such ability and is entitled to
under section (c)(5) and has requested his name to be placed on the panel at
that mine and has listed the job to be


<PAGE>   58


filled as one for which he wishes to be recalled (length of service with the
Employer at the mine for purposes of this provision includes total years of
service with the Employer).
(3) If there are no Employees on the mine panel or the District-Employer panel
or on the geographically contiguous District-Employer panel, who have the
ability to perform the work of the job, then, the Employer shall recall the
senior Employee from the Employer's other mines from the remaining UMWA
districts, who has such ability and is entitled to under Section (c)(5) and has
requested his name to be placed on the panel at the mine and has listed the job
to be filled as one for which he wishes to be recalled (length of service with
the Employer at the mine for purposes of this provision includes total years of
service with the Employer).
Signatory companies and coal producing divisions thereof, and wholly owned and
controlled coal producing subsidiaries and wholly owned and controlled coal
producing affiliates, shall be treated as one and the same Employer for panel
rights purposes.
Section (i) Job Bidding
Filling of all permanent vacancies and new jobs created during the term of this
Agreement will be made on the basis of mine seniority as set forth in the
following procedure:
(1) The job or vacancy shall be posted by management in a conspicuous place at
all portals of the mine for a period of five (5) calendar days, but no less than
three (3) production days, and will be properly identified as to portal
(underground mines), job title, wage rate, at non-rotating mines as to shift,
and the most recent measurement of respirable dust in the work place
(underground mines). If the new job or vacancy does not yet exist, the estimated
date when the job or vacancy will exist will also be posted.
(2) Any Employee who believes he has the ability to perform the work of the
permanent vacancy or new job shall be entitled to bid on such vacancy during the
five-day posting period.
In addition, eligible panel members will also be considered on the basis of
seniority as defined in section (a) above for permanent vacancies or new jobs
that the panel member listed as jobs to which he wished to be recalled. For
purposes of this section, a panel member shall be presumed to have bid on each
job he has listed on his layoff form as one for which he wished to be recalled.
(3) At the close of the posting period, upon request, the Employer shall make
available to the Union panel custodian, the names of all Employees who have bid
and panel members who listed the job as one for which they wished to be
recalled. Within three (3) production days after the end of the posting period,
the senior Employee having the ability to perform the work of the job (including
panel members) making a bid for such permanent vacancy or new job shall be
selected from the applicants.
In order to fill the present job of the successful bidder, he may be required to
remain on his present job for a period of time not to exceed 30 days. If during
that 30-day period, the job for which he has been selected is filled by any
other Employee, the successful bidder shall receive the established rate of pay
for the job for which he has been selected-if that rate is higher than his
present job rate-for the actual hours he would have worked on the new job had he
not been retained on his present job.
(4) All Employees absent from work due to illness or other legitimate reason
during the posting period shall be notified by management of the vacancy. An
Employee who is on


<PAGE>   59


leave of absence working for the local, district or International Union, if he
so requests, shall also be notified by management of the vacancy. The Employer
shall, on the date of the posting, give notice to such Employees by certified
mail to their last known address.
(5) During the posting period and the selection period, the management shall
have the right to fill such vacancy with an Employee they may select. However,
the experience an Employee has gained during the posting and selection period
shall not be considered as evidence of his ability to perform the job.
(6) No claim shall be recognized by either the Employer or Union representatives
for any vacancy after the posting period and the job has been filled by the
senior Employee making a bid for the same who has the ability to perform the
work of the job.
(7) If the senior Employee bidding withdraws his bid before the end of the
posting period, notice of the withdrawal shall be posted next to the job posting
and the posting period shall be extended for at least 48 hours to include at
least two full production days.
(8) On no more than two occasions during the term of this Agreement may an
Employee be awarded a vacancy or new job which carries the same or lower
standard daily wage rate than the job from which he is bidding; except, however,
that if there are otherwise no eligible bidders, the senior bidder who has the
ability to perform the work of the job shall be awarded such vacancy or new job.
Assignment upon realignment or upon being recalled from a panel shall not
constitute a bid for purposes of this paragraph, but shall be considered the job
from which the Employee is bidding for purposes of determining his eligibility
for award of the job he next bids. This paragraph shall not operate to deny an
Employee the award of a bid from an inside job to an outside job, provided that
Employee has not previously, during the term of this Agreement, successfully bid
from an inside job to an outside job; nor shall it operate to deny an Employee
the award of a bid from a job to which he was realigned if such job to which he
was realigned carries a higher standard daily wage rate than the job to which he
last bid before the realignment. No limitation will apply to an Employee who
bids on a vacancy or new job which carries a higher wage rate than his present
rate.
(9) If an Employee withdraws his bid before the end of the posting period, he
shall be ineligible for that job in that instance, but shall retain all bidding
privileges for all subsequent jobs. If an Employee does not withdraw his bid
before the end of the posting period and is selected for the job, he must accept
the job provided the job was properly identified.
(10) If the job which is posted involves work in a "less dusty area" of the mine
(dust concentrations of less than one milligram per cubic meter), the provisions
of this Article shall not apply if one of the bidders is an Employee who is not
working in a "less dusty area" and who has received a letter from the U.S.
Department of Health and Human Services informing him that he has contracted
black lung disease and that he has the option to transfer to a less dusty area
of the mine. In such event, the job in the less dusty area must be awarded to
the letterholder on any production crew who has the greatest mine seniority.
Having once exercised his option, the letterholder shall thereafter be subject
to all provisions of this Article pertaining to seniority and job bidding. This
section is not intended to limit in any way or infringe upon the transfer rights
which letterholders may otherwise be entitled to under the Act.


<PAGE>   60


(11) The provisions of paragraph (3) above shall apply to postings for the
positions of continuous miner operator or roof bolter on continuous mining
sections or roof bolter on conventional mining sections which are required by
this Agreement to be permanently assigned a full-time helper, except as follows:
Subject to the applicable provisions of this Article, permanent vacancies in
these machine operator positions shall be awarded to the senior bidder having
the ability to perform the work of the job, including an operator or
fully-trained helper, but if there are no such bidders the senior fully-trained
helper on the shift shall be promoted to such job.
Section (j) Training for Vacancy Not Filled by Bidding
Subject to the provisions of Article XVI (Training), a permanent vacancy and new
job which remains unfilled after having been posted in accordance with the
provisions of section (i) of this Article may be filled by hiring a new
applicant who has the ability to perform the work. If no such applicant is
available, and the vacancy is to be filled, a training opportunity for such
vacancy shall be posted for a period of seven calendar days, but no less than
five (5) production days, and will be identified as a training opportunity for
the specific job involved. The Employee who is to be trained shall be selected
from the applicants in accordance with the provisions of Article XVI, section
(g) (Training). The successful applicant shall be offered such on-the-job
training or other more formal training opportunities and instruction as
determined by management, taking into consideration the complexity, skill and
knowledge required for successful performance of the specific job in question.
Section (k) Transfer to Other Mines of Employer
Employees laid off in a reduction in force shall at their request be placed on
the panel of the other mine or mines of the same Employer in the same UMWA
district and the Employee's choice of other UMWA districts, provided that
Employees laid off after the effective date of this Agreement shall make their
requests in writing within the five (5) calendar days following their layoff.
Signatory companies and coal producing divisions thereof and wholly owned and
controlled coal producing subsidiaries and wholly owned and controlled coal
producing affiliates shall be treated as one and the same Employer for panel
rights purposes.
When a mine is being abandoned or being closed or there is a reduction in force
and work is available at the other mine or mines of the same Employer and the
Employees have requested their names be placed on the panel or panels of such
mine or mines, the Employees from the mine being abandoned or closed or the
Employees laid off in the reduction in force, shall be transferred to the other
mine or mines where work is available. They shall be transferred in line with
their position on their former mine's panel list but their seniority at the mine
to which they are being transferred shall not begin until the date they start
work at the new mine with the following exceptions: 
When Employees from the mine being abandoned or closed are required to remain 
there to assist in closing or dismantling work, they will have the right to 
transfer later, but their seniority will be retroactive to the date when they 
would have been transferred had they not been required to remain at the mine 
being  abandoned on dismantling work. Should such closed or abandoned mine be 
reopened or should work be available for the Employees laid off in a reduction 
in force, they will be permitted to return to the former mine with full 
accumulated seniority therein.


<PAGE>   61


Section (l) Leave of Absence 
Employees who have an official request for a leave of absence shall be granted
leave to participate in Union activities and to serve as district or
international officers or representatives and shall retain their seniority and
accrue seniority while they are on such leave. Employees who have an official
request for a leave of absence shall be granted leave to accept a temporary
Union assignment, not to exceed four (4) consecutive months, and upon the
expiration of such leave shall be entitled to return to their former jobs and
shifts. Except in cases of District or International Conventions or District
Conferences relating to national contract negotiations, no more than two (2)
Employees may accept such temporary Union assignments from the same mine at the
same time. Permanent Union appointees and those Employees who are elected to
district or international office shall be entitled to return to a job, provided
that Employees with greater seniority at the mine are not on layoff status, and
may bid on such vacancies as are posted. Where, by prior practice or custom, a
permanent Union officer or appointee is entitled to return to his job, that
practice shall be continued. This provision is retroactive to April 1, 1964.
Section (m) Permanent and Temporary Supervisors
Employees who are promoted to a permanent supervisory position exempt from
coverage under this Agreement and Employees who are permanent supervisors on the
Effective Date of this Agreement shall forfeit their original seniority and
panel rights. Employees may perform supervisory work exempt from this Agreement
on a temporary basis, not to exceed sixty (60) working days (cumulative) during
any contract year, without loss of seniority.
Section (n) Shift Preference
When a permanent vacancy or new job is filled at a mine where shift rotation is
not practiced, the Employee with the greatest seniority shall be given
preference with respect to the day, afternoon and midnight shift work, on the
basis of the same procedure set forth in the job bidding section of this
Article.
Article XVIII-TONNAGE RATES AND HAND LOADING
Section (a) Tonnage Rates
Hand loaders employed on a tonnage rate basis will be paid a tonnage rate to be
negotiated between the Employer and the President of the UMWA District in which
the company operates subject to the approval of the International Union. Tonnage
rates and portal pay for hand loaders shall be periodically adjusted in
accordance with Article X.
Section (b) Checkweighmen
The Employees shall have the right to a checkweighman of their own choosing to
inspect the weighing of coal; provided that in any case where on account of
physical conditions and mutual agreement, wages are based on measure or other
method than on actual weights, the Employees shall have the right to check the
accuracy and fairness of such method by a representative of their own choosing.
Cars shall be tared at reasonable intervals and without inconvenience to the
operation of the mine. Tare shall be taken of the cars in their usual running
condition. 
At mines not employing a sufficient number of Employees to maintain a 
checkweighman, the weight credited to the Employee shall be checked against the
billing weights furnished by railroads to the Employer, and on coal trucked 
from such mines, a practical


<PAGE>   62


method to check the weights shall be agreed upon. Such weights shall be checked
once a month.
The wages of checkweighmen will be collected through the pay office semimonthly
upon a statement of time made by the checkweighmen, and approved by the mine
committee. The amount so collected shall be deducted on a percentage basis,
agreed upon by the checkweighman and clerk, from the earnings of the Employees
engaged in mining coal and shall be sufficient only to pay the wages and
legitimate expenses incident to the office.
If a suitable person to act as checkweighman is not available among the
Employees at the mine, a man not employed at the mine may be selected upon
mutual agreement. The checkweighman or checkmeasurer, as the case may require,
shall be permitted at all times to be present at the weighing or measuring of
coal, also have power to checkweigh or checkmeasure the same; and during the
regular working hours to have the privilege to balance and examine the scale or
measure the cars, providing that all such balancing and examination of scales
shall only be done in such a way and at such time as in no way to interfere with
the regular working of the mine. It shall be the further duty of checkweighman
or checkmeasurer to credit each Employee with all merchantable coal mined by him
on a proper sheet or book kept by him for that purpose. Checkweighmen or
checkmeasurers shall in no way interfere with the operation of the mine.
Section (c) Preparation and Cleaning of Coal
Each district agreement shall provide for the preparation and proper cleaning of
coal. Reject clauses providing as follows shall be eliminated from all district
agreements: "At mines where in order to maintain and improve the earnings of
both the loaders and the cutters, and where it is impracticable to maintain
loader earnings if all the impurities were removed underground, certain portions
of those impurities are loaded and rejected either by hand or mechanical methods
at the tipple.
"The question of rejects shall be referred to the local mine committee who
shall, with the mine management, determine the amount and quantity of rejects
that reach the coal producers' tipples and cleaning plants and an adjustment
shall be made in the tare weight of the mine car sufficient to cover this amount
and quantity. Should a disagreement ensue, it shall be handled as any dispute
arising under this contract. Operators accepting this plan agree to eliminate
the practice of docking for impurities as applying to individual workers."
All reject clauses of a similar character shall be eliminated from district
agreements.
Section (d) Delivery of Cars
For each mine where the practice now prevails, the delivery of cars to the
working places in the mines by pushing will be the subject of local negotiations
and will not be prohibited where it is impracticable to deliver them to the
working place otherwise than by pushing. Any controversy as to the continuation
of the practice where it now prevails must be considered as a dispute and shall
be settled promptly in accordance with the customary grievance machinery.
Section (e) Explosives
Matters affecting the cost of explosives are referred to the district
conferences.
Section (f) Bottom Coal


<PAGE>   63


To the extent it has been the custom in each district, all bottom coal shall be
taken up and loaded by the Employee.
Section (g) Cutting Coal
The cutter shall cut the coal as directed by the Employer.
Section (h) Blacksmithing
There will be no charge for blacksmithing.
Section (i) Rockdusting
Rockdusting shall be done at the expense of the Employer.
Section (j) Day Men Transferred
When day men are transferred to loading coal the individual affected, if
aggrieved, shall have the right of review under the settlement of disputes
procedures provided in this Agreement.
Article XIX-CLASSIFICATION
Section (a) Working in Classification
An Employee shall normally be assigned to duties customarily involved with his
regular classified job in accordance with the following principles.
Section (b) Classification Requirement
Within sixty (60) days of his employment or within sixty (60) days of the
Effective Date of this Agreement, whichever is earlier, each new Employee-unless
prohibited by law-shall be classified in a regular, recognized occupation.
Failure to so classify such new Employee will result in automatic classification
at the rate which is the highest rate for any work performed during the period
since he was employed and has not been classified. Nothing in this section,
however, shall be understood to require double manning of jobs or prevent return
of an Employee to his usual classification following temporary assignment to
another job.
Section (c) Temporary Assignments
Every reasonable effort shall be made to keep an Employee at work on the job
duties normally and customarily a part of his regular job, and to minimize to
the extent practicable the amount of temporary assignments of particular
individuals to other jobs. However, where a senior Employee has expressed a
desire to improve his ability to perform a job to which he wishes to be
promoted, to the extent practicable, he shall be given a preference in filling
temporary assignments in regard to that job.
Section (d) Protection Against Discrimination
In no case may the Employer make a temporary assignment for the purpose of
disciplining or discriminating against an Employee.
Section (e) Compensation for Temporary Assignments
When an Employee works on another job on a temporary basis, he shall be
compensated for the entire shift at the higher of his regular rate or the rate
of the job to which he is temporarily assigned. This section shall not be
construed to apply to Employees whose regular job duties include the relief of
other Employees for short periods of time which do not exceed thirty (30)
minutes for each occurrence during the basic workday. For such relief periods,
however, the Employee providing relief shall be paid the higher rate.
Article XX-HEALTH AND RETIREMENT BENEFITS
Section (a) General Purpose


<PAGE>   64


This Article makes provision for pension, health and other benefits for
Employees covered by this Agreement, and for former Employees who were covered
under the United Mine Workers of America Welfare and Retirement Fund of 1950
("1950 Fund"), and for the spouses and dependents of such Employees. The
benefits to be provided are as set forth under separate plans and trusts
referred to in Sections (b) and (c) of this Article. A general description of
the benefits to be provided appears immediately following this Article. The
specific provisions of the plans will govern in the event of any inconsistencies
between the general description and the plans.
Pursuant to the Coal Industry Retiree Health Benefit Act of 1992 (the "Coal
Act"), the health benefits (and in some cases the death benefits) provided to
retirees who were age and service eligible as of February 1, 1993, and who
actually retired by September 30, 1994, are guaranteed by an Act of Congress.
The Coal Act, which was enacted with the active support of the United Mine
Workers of America and the BCOA, requires responsible employers to provide and
pay for these benefits for life. Although, under certain circumstances,
employers are permitted to adopt cost containment and managed care programs, the
levels of benefits provided to retirees and dependents covered by the Coal Act
are fixed by law, and may not be changed by any employer.
Benefits under the Coal Act are provided either by the employer who was
providing those benefits on February 1, 1993, or by two newly-created Funds: the
United Mine Workers of America Combined Benefit Fund and the United Mine Workers
of America 1992 Benefit Plan. Those benefits are not governed by this Agreement.
For purposes of this Article, the 1950 Pension Plan and Trust and the 1974
Pension Plan and Trust shall be a continuation of the benefit program
established under the UMWA Welfare and Retirement Fund of 1950 (hereinafter the
1950 Fund).
Each participant and beneficiary shall be entitled only to the pension benefits
provided in and paid from either the 1950 Pension Plan and Trust or the 1974
Pension Plan and Trust and each participant, beneficiary and dependent shall be
entitled only to the benefits provided in and paid from the 1993 Benefit Trust,
or the individual benefit plans referred to in Section (c). An individual that
is entitled to health benefits from a plan maintained pursuant to the Coal Act
will receive benefits from such plan, and not from a plan maintained pursuant to
this Article. In addition, an individual that is entitled to death benefit
coverage from the United Mine Workers of America Combined Benefit Fund shall not
be entitled to death benefit coverage from any plan maintained pursuant to this
Article.
The general purpose of the plans referred to in this Article shall be to provide
health care for working and retired miners and their dependents; pensions for
miners upon their retirement; health care and financial support for eligible
disabled miners; and financial support for surviving spouses and surviving
dependents provided by each of the Trusts and Plans referred to in this Article.
Except as otherwise specifically set forth in this Article, it is agreed that
the Trusts referred to in this Article are irrevocable Trusts created pursuant
to, and within the scope of, Section 302(c) of the Labor-Management Relations
Act, 1947, and shall endure as long as the purposes for their creation shall
exist. 
Section (b) 1950 Pension Plan and Trust


<PAGE>   65


(1) The United Mine Workers of America 1950 Pension Trust ("1950 Pension Trust")
is incorporated by reference and made a part of this Agreement. The United Mine
Workers of America 1950 Pension Plan (the "1950 Pension Plan") is incorporated
by reference and made a part of this Agreement. The pensions to be paid from the
1950 Pension Trust are as set forth in the 1950 Pension Plan.
(2) Pursuant to the requirements of the Coal Act, the United Mine Workers of
America 1950 Benefit Plan and Trust ("1950 Benefit Trust") and the United Mine
Workers of America 1974 Benefit Plan and Trust (the "1974 Benefit Trust") were
merged into the United Mine Workers of America Combined Benefit Fund (the
"Combined Fund"). The Combined Fund is governed by the terms of the Coal Act,
and is not maintained pursuant to this Article. Health benefits for individuals
who would be eligible for benefits under the 1950 Benefit Plan but for the
passage of the Coal Act and who are not entitled to benefits under the Coal Act
will be provided by the 1993 Benefit Fund during the term of this Agreement.
(3) Upon the discharge of all its obligations, any remaining assets in the 1950
Pension Trust shall, upon termination of such Trust, be transferred to the 1974
Pension Trust. 
Section (c) 1974 Pension Plan and Trusts, 
1993 Benefit Plan and Trust, and Employer Benefit Plans
(1) The United Mine Workers of America 1974 Pension Trust ("1974 Pension Trust")
is incorporated by reference and made a part of this Agreement. The pensions to
be paid from the 1974 Pension Trust are as set forth in the United Mine Workers
of America 1974 Pension Plan ("1974 Pension Plan"), which is incorporated by
reference and made a part of this Agreement. This Plan is a continuation of the
pension program of the 1950 Fund and was effective December 6, 1974.
(2) The United Mine Workers of America 1993 Benefit Trust ("1993 Benefit Trust")
is incorporated by reference and made a part of this Agreement. The 1993 Benefit
Trust provides certain health benefits, not including pension benefits, and the
terms and conditions under which those benefits will be provided are as set
forth in the plan under the 1993 Benefit Trust and under the terms of this
Article.
(3)(i) Each signatory Employer shall establish and maintain an Employee benefit
plan to provide, implemented through an insurance carrier(s), health and other
non-pension benefits for its Employees covered by this Agreement as well as
pensioners under the 1974 Pension Plan and Trust whose last signatory classified
employment was with such Employer and who are not eligible to receive benefits
from a plan maintained pursuant to the Coal Act. The benefits provided by the
Employer to its eligible Participants pursuant to such plan shall be guaranteed
during the term of this Agreement by that Employer at levels set forth in such
plan. The plans established pursuant to this subsection are incorporated by
reference and made a part of this Agreement, and the terms and conditions under
which the health and other non-pension benefits will be provided under such
plans are as to be set forth in such plans.
(ii) The 1993 Benefit Plan and Trust provides health and other non-pension
benefits during the term of this Agreement, to any retired miner (or the
eligible dependent of such retired or deceased miner) who meets the conditions
of one of the following:
(a) The retired miner is described in Section (b)(2).


<PAGE>   66


(b) The retired miner separated from classified employment prior to December 16,
1993, would be eligible to receive benefits from the 1974 Benefit Plan but for
the passage of the Coal Act, is not entitled to benefits under the Coal Act, and
whose last signatory employer was no longer deriving revenue from the production
of coal on December 16, 1993.
(c) The miner is retired under the 1974 Pension Plan or any successor plan(s)
thereto, last worked in signatory classified employment for an Employer who was
obligated to contribute and contributed to the 1993 Benefit Trust at the rates
specified in Section (d) and would otherwise cease to receive the health and
other non-pension benefits provided herein because such last signatory Employer
(including successors and assigns) is no longer in business. An Employer's
obligation to contribute at the rates specified in Section (d) must be in effect
on the date the Employer is first considered to be "no longer in business." For
purposes of determining eligibility under the 1993 Benefit Plan and Trust, the
Employer is considered to be "no longer in business" only if the Employer meets
the conditions of (I) and (II) below. The parties expressly intend that each of
the requirements of (I) and (II) be met.
(I) The Employer has ceased all mining operations and has ceased employing
persons under this Wage Agreement, with no reasonable expectation that such
operations will start up again; and
(II) The Employer is financially unable (through either the business entity that
has ceased operations as described in subparagraph (a) above, including such
company's successors or assigns, if any, or any other related division,
subsidiary, or parent corporation, regardless of whether covered by this Wage
Agreement or not) to provide health and other non-pension benefits to its
retired miners and surviving spouses.
(d) The retired miner worked under the terms of the 1974 NBCWA (but not under
the terms of the 1978 NBCWA), has been or would have been denied a benefit by
the UMWA 1974 Benefit Plan solely because the miner did not work under the terms
of a 1978 or subsequent NBCWA; and is not eligible to receive benefits under the
Coal Act. The Union and Trustees shall assist and fully cooperate with the
Employers in obtaining all necessary opinion letters, exemptions, or rulings
from the Department of Labor, the Internal Revenue Service or other applicable
federal agencies, in order to implement the provisions of this subsection so as
to ensure compliance with all applicable federal laws and regulations and ensure
the deductibility for income tax purposes of any and all contributions made by
signatory Employers to the 1993 Benefit Trust and the individual health plans
referred to in this Section. 
Section (d) Contributions by Employers
(1) During the life of this Agreement, for the periods of time indicated below,
each signatory Employer (including those engaged in the production of coal and
those not engaged in the production of coal) shall contribute to the Trusts
referred to in this Article the amounts specified below based on cents per hours
worked by each of the Employer's Employees who perform classified work under
this Agreement.
(i) Into the 1950 Pension Trust: for the period beginning on the Effective Date
and ending when this Agreement is terminated, 0.0(cent) per hour on each such
hour worked;
(ii) Into the 1974 Pension Trust: for the period beginning on the Effective Date
and ending when this Agreement is terminated, 75.0(cent) per hour on each such
hour worked;


<PAGE>   67


provided, however, that when the 1974 Pension Trust reaches full funding, then
for the period beginning with the first month following full funding and ending
when this Agreement is terminated, 0.0(cent) per hour on each such hour worked.
For purposes of this subdivision, "full funding" means that the market value of
assets of the 1974 Pension Trust exceeds the present value of accrued benefits
(taking into account all benefit improvements negotiated in the 1998 NBCWA) of
the Trust, using the Plan's funding assumptions, in accordance with the
governing documents of the Plan and Trust and as projected annually by the
Plan's actuary. Beginning with the valuation for July 1, 1998, the Plan's
actuary shall make the necessary projections to the end of each month of the
Plan year.
(iii) Into the 1993 Benefit Trust: for the period beginning on the Effective
Date and ending when this Agreement is terminated, 13.0(cent) per hour on each
such hour worked; provided that the obligation of each signatory Employer to
make contributions into the 1993 Benefit Trust shall be suspended at any time
that the net assets available for future benefits equal or exceed $20 million,
and shall not resume following any such suspension until such time as the net
assets available for future benefits are less than $15 million. For purposes of
this subdivision, "net assets available for future benefits" is the amount shown
as such on the 1993 Benefit Plan monthly financial statements, under "Statements
of Net Assets Available for Plan Benefits."
(iv) In addition to the contributions indicated above, during the life of the
Agreement, each signatory Employer shall, for the periods of time indicated
below, contribute to the Trusts established in this Article in the amounts shown
below based on cents per ton on each ton of two thousand (2,000) pounds of
bituminous coal after production by another operator, procured or acquired by
such Employer for use or for sale on which contributions to the appropriate
Trusts as provided for in this Article have not been made (amounts shown below
include cents per hours worked contributions converted to tonnage equivalents).
(a) Into the 1950 Pension Trust: for the period beginning on the Effective Date
and ending when this Agreement is terminated, 0.0(cent) per ton on each such
ton;
(b) Into the 1974 Pension Trust: for the period beginning on the Effective Date
and ending when this Agreement is terminated, 18.75(cent) per ton on each such
ton; provided that, if at any time the contributions required under subdivision
(ii) of this Section are reduced to 0.0(cent) per hour as provided therein, then
for the period beginning on the date that such contributions are reduced to
0.0(cent) per hour and ending when this Agreement is terminated, 0.0(cent) per
ton; and
(c) Into the 1993 Benefit Trust: for the period beginning on the Effective Date
and ending when this Agreement is terminated, 2.5(cent) per ton on each such
ton; subject to the provision regarding suspension of the contribution
obligation in (iii) above. The parties hereto mutually agree that, if at any
time during the term of this Agreement a court or tribunal of competent
jurisdiction determines by a final decision that is not appealable that the
provision appearing in paragraph (iv) just preceding is invalid or in violation
of the National Labor Relations Act, 1947, as amended, or other Federal or state
law, the parties shall, at the option of and upon demand by the Union, without
affecting the integrity of any other provision of this Section or any other
provision of the National Bituminous Coal Wage Agreement, meet and engage in
good faith negotiations to agree


<PAGE>   68


upon a clause to be inserted into this Agreement in replacement of the provision
found invalid or unlawful.
(v) In the event the BCOA ceases to exist, or in the event that more than 50% of
the tonnage membership of BCOA on the Effective Date has withdrawn prior to the
time when the BCOA is required or permitted to take action under this Article,
then such action may be taken by a majority vote, based on tonnage, of Employers
who were BCOA members on the Effective Date.
(vi) At any time during the term of this Wage Agreement, the Bituminous Coal
Operators' Association may reallocate the contributions to be paid under the
respective subdivisions (i) and (ii) in this Section, which reallocation will
increase the cents per hour to be contributed into the 1950 Pension Trust and
correspondingly will decrease the cents per hour to be contributed by the
Employers into the 1974 Pension Trust, or which will decrease the cents per hour
to be contributed into the 1950 Pension Trust and correspondingly will increase
the cents per hour to be contributed by the Employers into the 1974 Pension
Trust, provided that notice shall be given to the Union, and to the Trustees
(who shall in turn notify all contributing Employers) of the cents per hour to
be allocated to each such Trust at least 30 days prior to the date the
contributions become due and owing to the respective Trusts. No reallocation of
the contributions to be paid to the two Trusts shall be made which will increase
the total combined contributions required by this Article to be made by the
Employers to those two Trusts; if at any time the contributions required under
subdivision (ii) of this Section are reduced to 0.0(cent) per hour as provided
therein, then the contributions required by this Article to be made to the 1950
Pension Trust beginning at that time will be 7.0(cent) per hour until the
termination of this Agreement, or if earlier, the date such Trust reaches full
funding (as that term is used in subdivision (ii) in this Section).
(vii) Hours of work for purposes of Employer contributions to the plans and
trusts described in this Article shall include all hours worked, or fractions
thereof, by Employees in a classified job covered by this Agreement. Hours
actually worked for which a premium pay of any type is provided shall be treated
for purposes of Employer contributions to the Trusts as though worked on a
straight-time basis. Reporting pay for hours not actually worked shall not be
included for the purpose of making Employer contributions to the Trust.
(2) The sole obligation under this Section of any Employer signatory hereto
shall be to contribute the amounts specified in this Section.
(3) The obligation to make payments to the Trusts specified in this Article
shall become effective on the dates specified in the respective Subdivisions (i)
through (iv) of this Section, and the first payments are to be made on the 10th
day of each month after such specified dates, and thereafter continuously on the
10th day of each succeeding calendar month.
(4) It shall be the duty of each of the Employers signatory hereto to keep
current said payments due to the Trusts, and to furnish to the International
Union, United Mine Workers of America and to the Trustees of those Trusts a
monthly statement showing on a mine-by-mine basis the full amounts due hereunder
and the tons of coal produced, procured or acquired for use or for sale and the
hours worked with respect to which the


<PAGE>   69


amounts are payable. Payments to those Trusts shall be made by check payable, as
appropriate, to: 
     "Trustees of the United Mine Workers of America 1950 Pension Trust" 
     "Trustees of the United Mine Workers of America 1974 Pension Trust"
     "Trustees of the United Mine Workers of America 1993 Benefit Trust" 
The Trustees are hereby authorized to require each signatory Employer to make
payment of all contributions to the 1993 Benefit Trust, the 1950 Pension Trust
and the 1974 Pension Trust by a single check made payable in such manner as may
be specified by the Trustees.
(5) Payments shall be delivered or mailed to such location as designated by the
Trustees of those Trusts.
(6) Failure of any Employer signatory hereto to make full and prompt payments to
the Trusts specified in this Article in the manner and on the dates herein
provided shall be deemed a violation of this Agreement. This obligation of each
Employer signatory hereto, which is several and not joint, to so pay such sums
shall be a direct and continuing obligation of said Employer during the life of
this Agreement and it shall be deemed a violation of this Agreement, if any
mine, preparation plant or other facility to which this Agreement is applicable
shall be sold, leased, subleased, assigned, or otherwise disposed of for the
purpose of avoiding any of the obligations hereunder.
(7) Each Employer agrees to give proper notice to the President of the
appropriate local union by the 18th day of each month that the Employer has made
the required payment to the Trusts for the previous month, as required by this
Article, or is delinquent in such payment, such notice to set forth the amount
paid to the Trusts, or the amount of the delinquency, the tonnage procured or
acquired for use or for sale and the hours worked with respect to the mine or
mines under the jurisdiction of such local union. Each Employer agrees to give
notice to the appropriate President of the Local Union by the 18th day of each
month that the Employer has made the appropriate payment to the insurance
carrier for the Employer benefit plan established under (c)(3) above, or is
delinquent in such payment.
(8) Title to all the monies paid into and/or due and owing to the Trusts
specified in this Article shall be vested in and remain exclusively in the
Trustees of those Trusts. It is the intention of the parties hereto that those
Trusts shall constitute irrevocable trusts and that no benefits or money payable
from those Trusts shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance or charge, and that any attempt
so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge
the same shall be void.
(9) It is understood that the individual Employees of Employers agree, through
their representative, the United Mine Workers of America, to surrender any
personal or individual right to or interest in monies paid or required to be
paid to the Trusts pursuant to this Agreement.
(10) Any judgment obtained by the Trustees of the Trusts established pursuant to
this Agreement for a default giving rise to damages accruing to more than one of
the Trusts established hereunder shall be allocated by the Trustees among such
Trusts in proportion to the amounts owing to each which gave rise to such
judgment. 
Section (e) Responsibilities and Duties of Trustees


<PAGE>   70


(1) The 1950 Pension Trust, the 1974 Pension Trust, and the 1993 Benefit Trust
shall each be administered by a Board of four Trustees, two of whom shall be
appointed by the Employers and two of whom shall be appointed by the Union.
Either party may, but shall not be required to, appoint an individual to serve
as a Trustee on more than one Trust. One of the Trustees appointed by the Union
shall be the Chairman. Each Board of Trustees shall perform its duties in
accordance with the requirements, terms and conditions of each such Trust.
(2) It is the intent and purpose of the contracting parties that full
cooperation shall be given by each of them to one another, to the Trustees
provided for under this Article, and to all affected mine workers, to the
eventual coordination and development of policies and working agreements
necessary or advisable for the effective operation of the Trusts and Plans.
(3) Action which may be required by the Employers in connection with any matter
hereunder, including but not limited to the removal or appointment of a Trustee,
may be taken by BCOA.
(4) All covenants, rights and obligations accruing to the Trusts, and the
Benefit Plan, and the Trustees of the Pension and Benefit Trusts and Plans, and
all breaches, violations and/or defaults of any provision of this Article
pertaining to the Trusts and Plans, the Trust Agreements, or Pension Plans,
shall be enforced by the Trustees, at their discretion, through any and all
available legal means, without first exhausting the grievance and arbitration
procedures set forth in this Agreement.
(5) Disputes arising under this Agreement with regard to the Employer benefit
plan established in (c)(3) above shall be referred to the Trustees. The Trustees
shall develop procedures for the resolution of such disputes. In the event the
Trustees decide such dispute, such decision of the Trustees shall be final and
binding on the parties. If the Trustees are unable to resolve the dispute, such
dispute shall be referred to a permanent three-member arbitration panel selected
by mutual agreement of the UMWA and the BCOA and maintained by the Trustees. A
dispute referred in this manner shall be decided by one member of the
arbitration panel, determined on a rotating basis, whose decision shall be final
and binding on the parties. Precedent under the resolution of disputes mechanism
previously in place shall remain in effect, and the panel shall be required to
cooperate to assure the consistent interpretation of provisions under the
Employer Plans under this Article. Such disputes shall not be processed under
the provisions of Article XXIII (Settlement of Disputes). 
Section (f) Audits, Reports and Notices 
(1) It is agreed by the contracting parties that annual independent audits of 
the Trusts shall be made by independent certified public accountants to be 
designated by the Trustees of the Trusts. A statement of the results of such 
audits shall be sent to the contracting parties and shall be made available 
upon written request to any working or retired miner or to any beneficiary 
either by mail or at the principal office of the Trusts, or at such other place 
as may be designated by the Trustees. 
(2) If the Trustees determine that there is reasonable cause to question the 
accuracy of the sums paid under Section (d) of this Article, or of any 
verification thereof made by an Employer for a given monthly or annual period, 
the Employer shall, upon written request by the Trustees, make available for 
inspection and/or copying at reasonable times and


<PAGE>   71


places to a representative of the Trustees, those records which are necessary to
verify the accuracy of the sums paid.
(3) A complete accounting, on a mine-by-mine basis, of contributions received by
the Trusts under this Article shall be furnished by the Trustees, at least on a
quarterly basis, to the International Union. Such an accounting will also be
supplied to the District and Local offices of the Union with respect to the mine
or mines under their jurisdiction. Such accounting shall include tonnages of
coal procured or acquired for use or for sale, and hours worked with respect to
which contributions were paid, together with an identification of any period or
periods in which contributions were delinquent, showing the amounts of such
delinquencies. The Trustees shall take such action as they deem appropriate to
collect any such delinquencies, and shall advise the International Union and the
appropriate Districts and Locals of the Union, on at least a monthly basis, of
such delinquencies, as long as such delinquencies continue.
(4) Upon the written request of any International, District or Local officer of
the Union, the Trustees shall make available within seven (7) days of receipt of
such request an up-to-date accounting of contributions made and delinquencies
outstanding, in respect to any mine or related facility with respect to which
such officer has union jurisdiction.
(5) The Trustees shall furnish the Employers and the Union with such other
documentation and information as provided for in each of the Trusts described
herein. 
Section (g) Administration of Trusts
(1) Each Employer shall make available to the Trustees within a reasonable time
such information as the Trustees may determine to be reasonably required for the
purpose of administering the Trusts and Plans.
(2) The Trustees shall respond to all written requests for information,
applications, and other communications from beneficiaries within 15 working days
from their receipt at the office of the Trusts. A response from the Trustees may
be either a telephonic communication or a letter acknowledging receipt of such
communication from the beneficiary. A pension application must be initially
approved or denied within 12 weeks of the receipt of the application. The
foregoing shall not apply in the event of delays caused by conditions beyond the
control of the Trustees.
(3) The Trustees shall police and monitor the rolls of those entitled to
benefits from the Trusts. On at least a quarterly basis, the Trustees shall have
available a complete listing of current beneficiaries, identified by UMWA
district and local union jurisdiction, if applicable. The Trustees shall
promptly investigate and determine the eligibility or ineligibility of any
beneficiary whose right to receive benefits from the Trusts has been challenged
by an Officer of the International, District or Local Union or by any Employer.
In the event that a beneficiary or beneficiaries shall be determined to be
ineligible for health care or other benefits, the Trustees shall take prompt
action to correct the situation.
(4) The Trustees are authorized, upon prior written approval by the Employers
and the Union, to make such changes in the Plans and Trusts hereunder as they
may deem to be necessary or appropriate. 
They are also authorized and directed, after adequate notice and consultation 
with the Employers and Union, to make such changes in the Plans and Trusts 
hereunder, including any retroactive modifications or amendments, which shall 
be necessary:


<PAGE>   72
(a) to obtain all necessary determination letters or rulings from the Internal
Revenue Service or other applicable federal agencies so as to ensure compliance
with all applicable federal laws and regulations and ensure the continued
qualification of the 1950 and 1974 Pension Plans and Trusts and the
deductibility for income tax purposes of any and all contributions made by
signatory Employers to such Trusts as paid or incurred;
(b) to conform the terms of each Plan and Trust to the requirements of ERISA, or
any other applicable federal law, and the regulations issued thereunder;
(c) to obtain determination letters from the Internal Revenue Service that the
two Pension Plans will each meet the requirements of Section 401 of the Internal
Revenue Code and the Trusts thereunder will be exempt under Section 501(a) of
such Code and that the 1993 Benefit Trust will be exempt under Section 501(c)(9)
of such Code;
(d) to establish the deductibility for income tax purposes of any and all
contributions made by the signatory operators to the Pension Trusts and Benefit
Trust as paid or incurred; or
(e) to comply with all applicable court or government decisions or rulings.
In addition to the foregoing, the 1993 Benefit Plan Trustees shall have the
authority to make any amendments to the plan of benefits of the 1993 Benefit
Plan and Trust that they deem necessary and appropriate.
Section (h)  Guarantee of 1950 and 1974 Plans and Trusts
Notwithstanding any other provisions in this Agreement the Employers hereby
agree to fully guarantee the pension benefits provided by the 1950 Pension Fund
and the 1974 Pension Fund, during the term of this Agreement.
In order to fully fund these guaranteed benefits, the BCOA may increase, not
decrease (except as provided in Section (d)(1)), the rate of contributions to be
made to the 1950 Pension Fund and the 1974 Pension Fund during the term of this
Agreement. These contributions, which may be adjusted from time to time, shall
be made by all Employers signatory hereto during the term of this Agreement.
In addition, each signatory Employer hereby agrees to fully guarantee the health
benefits provided under its own Employer Plan described in Section (c)(3)(i) of
this Article XX during the term of this Agreement.
GENERAL DESCRIPTION OF THE HEALTH AND RETIREMENT BENEFITS
The following is a general description of certain information contained in the
UMWA 1950 Pension Plan and Trust, the UMWA 1974 Pension Plan and Trust, and the
individual Employer's benefit plan. This description is intended merely to
highlight certain information; it is not a complete statement of all of the
provisions of the Plans and Trusts, nor is it intended to be a Summary Plan
Description as defined in the Employee Retirement Income Security Act of 1974,
and is qualified in its entirety by, and subject to the more detailed
information contained in the Plans and Trusts, copies of which are on file and
available for inspection at the offices of the UMWA Health & Retirement Funds,
4455 Connecticut Avenue, N.W., Washington, D.C. 20008. The specific provisions
of the plans will govern in the event of any inconsistencies between the general
description and the plans.
The benefits provided by the 1993 Benefit Trust shall initially be equivalent to
those provided by the Employer Benefit Plans maintained pursuant to this
Article. Such plan of benefits may be amended from time to time, as determined
by the 1993 Benefit Plan


<PAGE>   73


Trustees. Benefits under the 1993 Benefit Trust shall only be those that can be
provided from the assets of the Trust, but the total package of benefits under
the Plan shall not exceed the value of the benefits provided under the
individual Employer Plan pursuant to this Article.
The parties expressly agree that the language references to "for life" and
"until death" that are retained in this General Description are intended to mean
that each Employer will provide, for life, only the benefits of its own eligible
retirees who retire during the term of this Agreement. A retiree shall be
considered to be a retiree of an Employer if his last signatory classified
employment was with such Employer. The benefits and benefit levels provided by
an Employer under its Employer Plan are established for the term of this
Agreement only, and may be jointly amended or modified in any manner at any time
after the expiration or termination of this Agreement.
However, under no circumstances will an Employer be responsible to provide
benefits or to contribute toward the provision of benefits, through the 1993
Benefit Trust or any other plan, trust or mechanism, to former employees and
retirees (or their spouses, surviving spouses or dependents) of any other
Employer beyond the term of this Agreement.
The following general description does not apply to plans maintained pursuant to
the Coal Act.
(1) PENSIONS FOR MINERS RETIRED UNDER THE 1950 PENSION PLAN:
Beginning on the Effective Date, pension benefits are according to the following
schedules:
(a) For pensioners with at least 20 years of credited service who retired on
other than a disability pension, the pension is $390 per month. Any such
pensioner whose pension is in pay status as of October 31, 1999 shall be issued
by November 1, 1999, by separate check from the 1950 Pension Plan, a one-time
single sum payment of $525. Any such pensioner whose pension is in pay status as
of October 31, 2000 shall be issued by November 1, 2000, by separate check from
the 1950 Pension Plan, a one-time single sum payment of $525. Any such pensioner
whose pension is in pay status as of October 31, 2001 shall be issued by
November 1, 2001, by separate check from the 1950 Pension Plan, a one-time
single sum payment of $525. Any such pensioner whose pension is in pay status as
of October 31, 2002 shall be issued by November 1, 2002, by separate check from
the 1950 Pension Plan, a one-time single sum payment of $550.
(b) For pensioners who retired on a disability pension, the pension is $232.50
per month. Any such disability pensioner whose pension is in pay status as of
October 31, 1999 shall be issued by November 1, 1999, by separate check from the
1950 Pension Plan, a one-time single sum payment of $315. Any such disability
pensioner whose pension is in pay status as of October 31, 2000 shall be issued
by November 1, 2000, by separate check from the 1950 Pension Plan, a one-time
single sum payment of $315. Any such disability pensioner whose pension is in
pay status as of October 31, 2001 shall be issued by November 1, 2001, by
separate check from the 1950 Pension Plan, a one-time single sum payment of
$315. Any such disability pensioner whose pension is in pay status as of October
31, 2002 shall be issued by November 1, 2002, by separate check from the 1950
Pension Plan, a one-time single sum payment of $340. Such pensioner will be
entitled to

<PAGE>   74


retain his Health Services card for life. Upon his death, his widow will retain
a Health Services card until her death or remarriage.
Any pensioner who is receiving a disability pension or a pension with at least
twenty years of credited service under this Plan is entitled to receive health
benefits until death except during any month in which he is regularly employed
at an earnings rate equivalent to at least $1000 per month. A widow is entitled
to receive health benefits until her death or remarriage subject to the same
$1000 earnings limit.
(c) For all other pensioners and future pensioners, the benefit is increased by
$15 per month. Any such pensioner whose pension is in pay status as of October
31, 1999 shall be issued by November 1, 1999, by separate check from the 1950
Pension Plan, a one-time single sum payment of $315. Any such pensioner whose
pension is in pay status as of October 31, 2000 shall be issued by November 1,
2000, by separate check from the 1950 Pension Plan, a one-time single sum
payment of $315. Any such pensioner whose pension is in pay status as of October
31, 2001 shall be issued by November 1, 2001, by separate check from the 1950
Pension Plan, a one-time single sum payment of $315. Any such pensioner whose
pension is in pay status as of October 31, 2002 shall be issued by November 1,
2002, by separate check from the 1950 Pension Plan, a one-time single sum
payment of $340.
(1A) 1950 WIDOWS' PENSION:
A Widow's Pension is provided through the 1950 Pension Plan to widows of miners
who were receiving a 1950 pension at the time of their death. The benefit is
$140 per month. Existing as well as future widows of 1950 Pensioners will
receive this benefit.
Any widow whose 1950 pension is in pay status as of October 31, 1999 shall be
issued by November 1, 1999, by separate check from the 1950 Pension Plan, a
one-time single sum payment of $400. Any widow whose 1950 pension is in pay
status as of October 31, 2000 shall be issued by November 1, 2000, by separate
check from the 1950 Pension Plan, a one-time single sum payment of $400. Any
widow whose 1950 pension is in pay status as of October 31, 2001 shall be issued
by November 1, 2001, by separate check from the 1950 Pension Plan, a one-time
single sum payment of $400. Any widow whose 1950 pension is in pay status as of
October 31, 2002 shall be issued by November 1, 2002, by separate check from the
1950 Pension Plan, a one-time single sum payment of $425.
(2) PENSIONS FOR MINERS WHO RETIRED UNDER THE 1974 PENSION PLAN PRIOR TO THE
EFFECTIVE DATE:
Pension benefits for pensioners who retired prior to the Effective Date are
according to the following schedules:
(a) For pensioners who retired on other than a minimum disability pension, the
pension is increased by $15 per month. Such pensioner will be entitled to retain
his Health Services card for life, subject to the $1000 earnings limit. Upon his
death, his widow will retain a Health Services card until her death or
remarriage, subject to the $1000 earnings limit.
(b) For pensioners who retired on a minimum disability pension, the pension is
$215 per month. Such pensioner will be entitled to retain his Health Services
card for life. Upon his death, his widow will retain a Health Services card
until her death or remarriage, subject to the $1000 earnings limit.
(c) Any pensioner who retired on other than a disability pension and whose
pension is in pay status as of the Effective Date shall receive an increase in
his pension of $15 per


<PAGE>   75


month. Any pensioner who retired on other than a disability pension and whose
pension is in pay status as of October 31, 1999 shall be issued by November 1,
1999, by separate check from the 1974 Pension Plan, a one-time single sum
payment of $525. Any pensioner who retired on other than a disability pension
and whose pension is in pay status as of October 31, 2000 shall be issued by
November 1, 2000, by separate check from the 1974 Pension Plan, a one-time
single sum payment of $525. Any pensioner who retired on other than a disability
pension and whose pension is in pay status as of October 31, 2001 shall be
issued by November 1, 2001, by separate check from the 1974 Pension Plan, a
one-time single sum payment of $525. Any pensioner who retired on other than a
disability pension and whose pension is in pay status as of October 31, 2002
shall be issued by November 1, 2002, by separate check from the 1974 Pension
Plan, a one-time single sum payment of $550.
Any pensioner whose disability pension is in pay status as of the Effective Date
shall receive an increase in his disability pension of $15 per month. Any
pensioner whose disability pension is in pay status as of October 31, 1999 shall
be issued by November 1, 1999, by separate check from the 1974 Pension Plan, a
one-time single sum payment of $315. Any pensioner whose disability pension is
in pay status as of October 31, 2000 shall be issued by November 1, 2000, by
separate check from the 1974 Pension Plan, a one-time single sum payment of
$315. Any pensioner whose disability pension is in pay status as of October 31,
2001 shall be issued by November 1, 2001, by separate check from the 1974
Pension Plan, a one-time single sum payment of $315. Any pensioner whose
disability pension is in pay status as of October 31, 2002 shall be issued by
November 1, 2002, by separate check from the 1974 Pension Plan, a one-time
single sum payment of $340.
(d) For surviving spouses of 1974 pensioners, the benefit is increased by $15
per month. A surviving spouse whose survivor pension is in pay status as of
October 31, 1999 shall be issued by November 1, 1999, by separate check from the
1974 Pension Plan, a one-time single sum payment of $400. A surviving spouse
whose survivor pension is in pay status as of October 31, 2000 shall be issued
by November 1, 2000, by separate check from the 1974 Pension Plan, a one-time
single sum payment of $400. A surviving spouse whose survivor pension is in pay
status as of October 31, 2001 shall be issued by November 1, 2001, by separate
check from the 1974 Pension Plan, a one-time single sum payment of $400. A
surviving spouse whose survivor pension is in pay status as of October 31, 2002
shall be issued by November 1, 2002, by separate check from the 1974 Pension
Plan, a one-time single sum payment of $425. Such surviving spouse will retain a
Health Services card until her death or remarriage, subject to the $1000
earnings limit.
(3) PENSIONS FOR MINERS WHO RETIRE ON OR AFTER THE EFFECTIVE DATE:
A working miner who retires on or after the Effective Date and who is eligible
for a pension under the terms of this Agreement will receive pension benefits
based upon the 1974 Pension Plan. Subject to (4) below, full credit is provided
for years worked as a classified Employee in mines of signatory Employers.
The earliest retirement age is 55. A miner may retire at 55 with 10 or more
years of signatory service.


<PAGE>   76


Pension benefits are increased as a miner accumulates years of signatory
service. Benefits are also increased based upon a miner's age at the time of
retirement with maximum benefits payable to miners who retire at the age of 62
or more.
In order to calculate the amount of a retirement benefit, it is necessary to
add:
(1) the benefit amount for signatory service earned prior to February 1, 1989
("Pre-1989 signatory service");
(2) the amount for signatory service earned between February 1, 1989, and
January 31, 1990 ("1989 signatory service");
(3) the amount for signatory service earned on or after February 1, 1990 and
before December 16, 1993 ("Post-1989 signatory service"); and
(4) the amount for signatory service earned on or after December 16, 1993
("Post-1993 signatory service").
The retirement benefit for signatory service earned prior to February 1, 1989,
is the following:
$32.50 per month multiplied by the years of Pre-1989 signatory service for the 
first 10 such years, plus
$33.00 per month multiplied by the years of Pre-1989 signatory service for the
second 10 such years, plus
$33.50 per month multiplied by the years of Pre-1989 signatory service for the
third 10 such years, plus
$34.00 per month multiplied by the years of Pre-1989 signatory service for each
such year over 30.
The retirement benefit for signatory service earned from February 1, 1989, to
January 31, 1990, is $40.00 for a year of 1989 signatory service.
The retirement benefit for signatory service earned from February 1, 1990, to
December 16, 1993, is $44.50 per year of Post-1989 signatory service.
The retirement benefit for signatory service earned on or after December 16,
1993 is $47.50 per year of Post-1993 signatory service.
For a working miner who retires on or after January 1, 2000, and who is eligible
for a pension under the terms of this Agreement, each dollar amount specified
above is increased by $2.00.
To estimate your pension, use the table on pages 295-299.
Any pensioner whose pension (other than a disability pension) is in pay status
as of the Effective Date shall receive an increase in his pension of $15 per
month. Any pensioner whose pension (other than a disability pension) is in pay
status as of October 31, 1999 shall be issued by November 1, 1999, by separate
check from the 1974 Pension Plan, a one-time single sum payment of $525. Any
pensioner whose pension (other than a disability pension) is in pay status as of
October 31, 2000 shall be issued by November 1, 2000, by separate check from the
1974 Pension Plan, a one-time single sum payment of $525. Any pensioner whose
pension (other than a disability pension) is in pay status as of October 31,
2001 shall be issued by November 1, 2001, by separate check from the 1974
Pension Plan, a one-time single sum payment of $525. Any pensioner whose pension
(other than a disability pension) is in pay status as of October 31, 2002 shall
be issued by November 1, 2002, by separate check from the 1974 Pension Plan, a
one-time single sum payment of $550.


<PAGE>   77


(4) SIGNATORY SERVICE:
Effective as of the calendar year 1978, each miner who works at least 1,000
hours in a calendar year as a classified Employee with a signatory Employer will
receive credit for a full year of signatory service for the purpose of
determining the amount of the pension. Time spent performing contractual
obligations (such as safety inspections, mine committee work, etc.) shall be
considered as hours worked in the schedule below. Time spent performing work for
the UMWA, its districts and local unions in lieu of regular scheduled classified
work for the Employer shall be considered as hours worked in the schedule below.
A person who is eligible to receive sickness and accident benefits will receive
credit as hours worked in the schedule below, for the period of eligibility.
Each miner who works less than 1,000 hours in a calendar year as a classified
Employee with a signatory Employer will receive credit for the above purpose for
a percentage of a year calculated in accordance with the following schedule:
                  Percentage of a Year of
         Hours Worked   Signatory Service
         less than 250         0
         250-499              25%
         500-749              50%
         750-999              75%
         1,000 or more       100%
For the purpose of calculating benefits and/or determining vesting, employment
with the United Mine Workers of America, following classified employment with an
Employer, shall be treated as signatory service, provided that the employee does
not receive a pension from the United Mine Workers of America Pension Plan based
on such service. Notwithstanding the foregoing, a classified Employee working on
the weekend/holiday crew as provided in Appendix C shall receive credit for a
percentage of a year calculated in accordance with the following schedule:
                  Percentage of a Year of
         Hours Worked   Signatory Service
less than 200                  0
200-399                       25%
400-599                       50%
600-799                       75%
800 or more                  100%
Special Rule for 1993-For the calendar year 1993, a classified Employee who
participated in an authorized strike following expiration of the 1988 Wage
Agreement, or who was laid off as a direct result of such an authorized strike,
and who worked at least 500 hours will receive credit for a full year of
signatory service.
(5) PENSIONS FOR DISABLED MINERS:
A miner who becomes permanently and totally disabled as a result of a mine
accident occurring after the Effective Date will become eligible for pension
benefits in accordance with the following schedule:

<PAGE>   78


(a) If a miner has less than ten years of signatory service at the time of
retirement, the miner will receive a $215 per month pension. Such pensioner will
be entitled to retain a Health Services card for life. Upon his death, his widow
will retain a Health Services card until her death or remarriage, subject to the
$1000 earnings limit.
(b) If a miner has ten years or more of signatory service at the time of
retirement, the miner will receive the greater of the minimum pension payable to
a miner with less than ten years of signatory service or a pension based upon
the years of signatory service which the miner has accumulated at the time of
retirement calculated in accordance with the benefit schedule in (3) above. Such
pensioner will be entitled to retain a Health Services card for life. Upon his
death, his widow will retain a Health Services card until her death or
remarriage, subject to the $1000 earnings limit.
(c) Any miner whose disability pension under this section is in pay status as of
the Effective Date shall receive an increase in his disability pension of $15
per month. Any pensioner whose disability pension under this section is in pay
status as of October 31, 1999 shall be issued by November 1, 1999, by separate
check from the 1974 Pension Plan, a one-time single sum payment of $315. Any
pensioner whose disability pension is in pay status as of October 31, 2000 shall
be issued by November 1, 2000, by separate check from the 1974 Pension Plan, a
one-time single sum payment of $315. Any pensioner whose disability pension is
in pay status as of October 31, 2001 shall be issued by November 1, 2001, by
separate check from the 1974 Pension Plan, a one-time single sum payment of
$315. Any pensioner whose disability pension is in pay status as of October 31,
2002 shall be issued by November 1, 2002, by separate check from the 1974
Pension Plan, a one-time single sum payment of $340.
(6) PENSIONS FOR SURVIVING SPOUSES:
The 1974 Pension Plan provides for Surviving Spouse pensions. Benefits for an
eligible surviving spouse will be payable in accordance with the following:
(a) If, on or after the Effective Date, a working miner dies (regardless of
cause) and would have been eligible for an immediate pension had the miner
retired on the date of death, the surviving spouse will be eligible for a
pension equal to 75% of the pension the miner would have received, and will
receive this pension until death. Such surviving spouse will be entitled to
retain a Health Services card until death or remarriage, subject to the $1000
earnings limit.
(b) Upon the death of a pensioner, other than a deferred vested pensioner with
less than 20 years of service, the surviving spouse of such pensioner will
receive a pension equal to 75% of the pensioner's pension until death. Such
surviving spouse will be entitled to retain a Health Services card until death
or remarriage, subject to the $1000 earnings limit.
(c) If a miner working on or after the Effective Date becomes eligible for a
pension, other than a deferred vested pension with less than 20 years of
service, at any time thereafter, upon his death after age 55, the surviving
spouse will be entitled to receive a Surviving Spouse pension equal to 75% of
the miner's pension until death. Such surviving spouse will be entitled to
retain a Health Services card until death or remarriage, subject to the $1000
earnings limit.
(d) If a miner had completed 10 years of credited service, died as a result of a
mine accident during the term of the 1978 or 1981 Wage Agreement, and was not
covered by a


<PAGE>   79


Surviving Spouse pension (or by any other monthly benefit payable to a surviving
spouse under a Wage Agreement), the surviving spouse, if she has never remarried
and is surviving on the first day of the month following the Effective Date,
will be entitled to receive a lump sum in the amount of $10,000, plus $100 for
each month beginning with the first month following the Effective Date and
continuing until her remarriage or death.
(e) Any surviving spouse whose survivor pension is in pay status as of the
Effective Date shall receive an increase in her survivor pension of $15 per
month. Any surviving spouse whose survivor pension is in pay status as of
October 31, 1999 shall be issued by November 1, 1999, by separate check from the
1974 Pension Plan, a one-time single sum payment of $400. Any surviving spouse
whose survivor pension is in pay status as of October 31, 2000 shall be issued
by November 1, 2000, by separate check from the 1974 Pension Plan, a one-time
single sum payment of $400. Any surviving spouse whose survivor pension is in
pay status as of October 31, 2001 shall be issued by November 1, 2001, by
separate check from the 1974 Pension Plan, a one-time single sum payment of
$400. Any surviving spouse whose survivor pension is in pay status as of October
31, 2002 shall be issued by November 1, 2002, by separate check from the 1974
Pension Plan, a one-time single sum payment of $425.
(6A) PRE-RETIREMENT SURVIVOR'S PENSION:
The Plan also provides a 75% survivor's pension for the spouse of a working
miner with 10 years of vested pension rights who dies before retirement age. The
pension benefit will be payable to the surviving spouse at the time the miner
would have attained age 55. Any surviving spouse whose survivor's pension is in
pay status as of the Effective Date shall receive an increase in her survivor's
pension of $15 per month. Any surviving spouse whose survivor pension is in pay
status as of October 31, 1999 shall be issued by November 1, 1999, by separate
check from the 1974 Pension Plan, a one-time single sum payment of $400. Any
surviving spouse whose survivor pension is in pay status as of October 31, 2000
shall be issued by November 1, 2000, by separate check from the 1974 Pension
Plan, a one-time single sum payment of $400. Any surviving spouse whose survivor
pension is in pay status as of October 31, 2001 shall be issued by November 1,
2001, by separate check from the 1974 Pension Plan, a one-time single sum
payment of $400. Any surviving spouse whose survivor pension is in pay status as
of October 31, 2002 shall be issued by November 1, 2002, by separate check from
the 1974 Pension Plan, a one-time single sum payment of $425.
(7) DEFERRED VESTED OR SPECIAL PENSIONS:
(a) If after the Effective Date a working miner ceases working for any reason,
except as provided in (b) below, after completing at least 10 years of signatory
employment, and before age 55, the miner will be eligible to receive a pension
at age 62, or an actuarially reduced pension at any time after 55. This pension
will be calculated in accordance with (3) above.
(b) If after the Effective Date a working miner ceases working and meets the
following criteria:
(i) had 20 years of signatory service on date last worked;
(ii) had attained the age of 50 on the date last worked; and either
(iii) had been laid off and had not refused a recall to the mine from which he
was laid off; or


<PAGE>   80


(iv) had been terminated under Article III, Section (j) of the Wage Agreement
(or if the miner had not been terminated, there had been a deterioration in
physical condition which prevented the miner from performing his regular work as
determined by a panel of three physicians, if the degree of such physical
deterioration is disputed by the Trustees) and was not employed in the coal
industry thereafter; then the miner will be eligible to receive a pension at age
62, or a pension at any time after age 55, reduced by one-quarter of one percent
for each full month between the date on which pension benefits begin and the
date the miner attains age 62.
(c) Any miner who ceased work prior to the Effective Date, is eligible to
receive a deferred vested pension under the 1974 Pension Plan and satisfies the
criteria in (b) above shall have his pension recomputed using the 1/4 of one
percent reduction based on the formula in effect at his retirement. Such
pensioner shall have his pension increased by any increases applicable to Age 55
Retirement which occurred after the date of his retirement and application for
pension. Any increase under this paragraph shall be applied prospectively only.
(d) If on or after December 16, 1993, a working miner ceases performing
classified work and meets the following criteria:
(i) he had 20 years of signatory service on his date last worked;
(ii) he had been laid off and had not refused a recall to the mine from which he
was laid off; or
(iii) he had been terminated under Article III, Section (j) of the Wage
Agreement (or if the miner had not been terminated, there had been a
deterioration in physical condition which prevented the miner from performing
his regular work as determined by a panel of three physicians, if the degree of
physical deterioration is disputed by the Trustees) and was not employed in the
coal industry thereafter; and
(iv) his pension is not in pay status on or before August 16, 1996;
then the miner will be eligible to receive a pension at age 62, or a pension at
any time after age 55, reduced by one-quarter of one percent for each full month
between the date on which pension benefits begin and the date the miner attains
age 62.
(e) Special Permanent Layoff Pension-If on or after January 1, 1998, a working
miner ceases performing classified work and meets the following criteria:
(i) he had 20 years of signatory service on his date last worked and was less
than age 55; and
(ii)(A) he has been permanently laid off under circumstances in which his
Employer has permanently closed the mine, or
(B) he has been permanently laid off;
then the miner will be eligible to receive a pension computed under the
provisions of (3) above, calculated as if he were then age 55. In the case of a
layoff described in (ii)(A) above, the pension will be effective on the first
day of the first month following both the layoff and the filing of a pension
application. In the case of a layoff described in (ii)(B) above, the pension
will be effective on the first day of the first month following both a period of
180 days after the layoff and the filing of a pension application. A miner will
be considered to have been "permanently laid off" under (ii)(B) if he has been
on layoff status for at least 180 days, and has not refused a recall to the mine
from which he was


<PAGE>   81


laid off. A miner who receives this special permanent layoff pension benefit, or
any other pension benefit under this Article, forfeits all seniority, panel, and
recall rights.
(f) The Surviving Spouse pension described in paragraph (6) does not apply to
the surviving spouse of a miner receiving a deferred vested pension with less
than 20 years of service.
(g) Any such miner whose pension is in pay status as of the Effective Date shall
receive an increase in his pension of $15 per month. Any such pensioner whose
pension is in pay status as of October 31, 1999 shall be issued by November 1,
1999, by separate check from the 1974 Pension Plan, a one-time single sum
payment of $525. Any such pensioner whose pension is in pay status as of October
31, 2000 shall be issued by November 1, 2000, by separate check from the 1974
Pension Plan, a one-time single sum payment of $525. Any such pensioner whose
pension is in pay status as of October 31, 2001 shall be issued by November 1,
2001, by separate check from the 1974 Pension Plan, a one-time single sum
payment of $525. Any such pensioner whose pension is in pay status as of October
31, 2002 shall be issued by November 1, 2002, by separate check from the 1974
Pension Plan, a one-time single sum payment of $550.
(h) The surviving spouse of such miner whose survivors pension is in pay status
as of the Effective Date shall receive an increase in her survivors pension of
$15 per month. Any such surviving spouse whose survivors pension is in pay
status as of October 31, 1999 shall be issued by November 1, 1999, by separate
check from the 1974 Pension Plan, a one-time single sum payment of $400. Any
such surviving spouse whose survivors pension is in pay status as of October 31,
2000 shall be issued by November 1, 2000, by separate check from the 1974
Pension Plan, a one-time single sum payment of $400. Any such surviving spouse
whose survivors pension is in pay status as of October 31, 2001 shall be issued
by November 1, 2001, by separate check from the 1974 Pension Plan, a one-time
single sum payment of $400. Any such surviving spouse whose survivors pension is
in pay status as of October 31, 2002 shall be issued by November 1, 2002, by
separate check from the 1974 Pension Plan, a one-time single sum payment of
$425.
(7A) PENSION BONUSES:
(a) The one-time single sum pension payments set forth in this Article are not
intended as an ongoing feature of either the 1950 or 1974 Pension Plan, and the
Plans shall have no obligation to provide payments of this type other than those
expressly provided for in this Article and in the Plans.
(b) Non-Duplication-No individual shall be entitled to receive a single sum
pension payment on any given date under more than one provision of this Article.
(8) LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS:
Life and Accidental Death and Dismemberment Insurance benefits are provided by
the Employer for working miners in accordance with the following schedule:
(a) Upon the death of a working miner due to other than violent, external and
accidental means on or after the Effective Date, life insurance benefits in the
amount of $55,000 will be paid to the miner's named beneficiary. Upon the death
of a working miner due to other than violent, external and accidental means on
or after the fourth anniversary of the Effective Date, life insurance benefits
in the amount of $60,000 will be paid to the miner's named beneficiary. Spouses
who are not eligible for surviving spouse pension benefits, will continue
eligibility for a Health Services card (also covers dependents) until


<PAGE>   82


remarriage or for 60 months, whichever occurs first, subject to the $1000
earnings limitation.
(b) Upon the death of a working miner due solely to violent, external and
accidental means on or after the Effective Date, life insurance in the amount of
$110,000 will be paid to the miner's named beneficiary. Upon the death of a
working miner due solely to violent, external and accidental means on or after
the fourth anniversary of the Effective Date, life insurance in the amount of
$120,000 will be paid to the miner's named beneficiary. Spouses who are not
eligible for surviving spouse pension benefits, will continue eligibility for a
Health Services card (also covers dependents) until remarriage or for 60 months,
whichever occurs first, subject to the $1000 earnings limitation.
(c) If a working miner should lose 2 or more members due to violent, external
and accidental means on or after the Effective Date, the miner shall receive a
$60,000 dismemberment benefit. If a working miner should lose 2 or more members
due to violent, external and accidental means on or after the fourth anniversary
of the Effective Date, the miner shall receive a $70,000 dismemberment benefit.
If a working miner shall lose one member due solely to violent, external and
accidental means on or after the Effective Date, the miner shall receive a
$30,000 dismemberment benefit. If a working miner shall lose one member due
solely to violent, external and accidental means on or after the fourth
anniversary of the Effective Date, the miner shall receive a $35,000
dismemberment benefit. A member for the purpose of the above is (i) a hand at or
above the wrist, (ii) a foot at or above the ankle or (iii) total loss of vision
in one eye.
(d) Accidental death or dismemberment benefits are not payable if caused in
whole or in part by disease, bodily or mental infirmity, ptomaine or bacterial
infection, hernia, suicide, intentional self-inflicted injury, insurrection or
acts of war or is caused by or results from committing or attempting to commit a
felony.
(9) PENSIONER'S DEATH BENEFITS:
(a) Upon the death on or after the Effective Date of a pensioner who has retired
under the 1950 Pension Plan, and who is not a participant in the Combined
Benefit Fund, a $6,000 death benefit will be paid by the 1950 Pension Plan to
his widow, or, in the absence of a widow to his dependents, if any; otherwise a
$5,000 death benefit will be paid by the 1950 Pension Plan to his nearest
survivor.
(b) Upon the death on or after the Effective Date of a pensioner under this
Agreement who retired under the 1974 Pension Plan, with other than a deferred
vested pension based on less than 20 years of credited service, a $6,000 death
benefit will be paid by the 1974 Pension Plan to the named beneficiary of the
deceased retiree if such named beneficiary is a surviving spouse or dependent
relative; otherwise, a death benefit of $5,000 will be paid by the 1974 Pension
Plan to the named beneficiary of such deceased retiree. For purposes of this
paragraph, "a pensioner under this Agreement" means a pensioner who is not
entitled to benefits from the Combined Fund, is not entitled to death benefit
coverage from a plan maintained by his employer, and who meets one of the
following conditions:
         i)       the pensioner is a participant in the 1992 Benefit Plan;
         ii)      the pensioner is a participant in the 1993 Benefit Trust;

<PAGE>   83


         iii) the pensioner is a participant in an individual employer plan
maintained pursuant to the Coal Act and whose last signatory employer ceased
producing and/or processing coal prior to December 16, 1993;
         iv) the pensioner was entitled to death benefit coverage from the 1974
Pension Plan on February 1, 1993 (or would have been had he been retired or
eligible to retire on that date); or
         v) the pensioner's last signatory employer (the employer for whom such
pensioner last worked in signatory classified employment) is a current 1974
Pension Plan contributor signatory to the 1998 NBCWA or to an agreement
(including prior agreements, where applicable) requiring a contribution
obligation with respect to the 1974 Pension Plan that is identical to the
contribution obligation set forth in the 1998 NBCWA (or prior NBCWAs, where
applicable).
(10) HEALTH CARE:
Health care benefits provided under the Employer Benefit Plan are guaranteed
during the term of this Agreement subject to the terms of this Agreement at the
level of benefits provided in the Employer Benefit Plan.
(a) Working miners will be provided health benefits through their individual
Employer's benefit plan maintained pursuant to this Article.
(b) Pensioners, other than deferred vested pensioners with less than 20 years of
service and pensioners receiving a Special Permanent Layoff Pension, retired
under the 1974 Pension Plan will be provided health benefits through the
Employer from which they retired. Pensioners entitled to benefits from a plan
maintained pursuant to the Coal Act will receive benefits from such plan.
(c) Pensioners receiving a Special Permanent Layoff Pension will be provided
health benefits from their Employers in accordance with the layoff benefits
otherwise provided under this Wage Agreement; subsequently, upon reaching age
55, such pensioners shall receive health benefits from their Employers.
(d) Pensioners, both regular and disabled, their surviving spouses and
dependents, who are described in Section (c)(3)(ii) will have benefits provided
under the 1993 Benefit Plan and Trust.
(e) Pregnancy benefits will be provided in the same manner as for any other
disability.
(f) Only benefits for prescription drugs (only those drugs requiring a
prescription for dispensing) are provided.
(g) Spouses of working miners who died, who are not eligible for Surviving
Spouse pension benefits, will continue eligibility for health care until
remarriage, or for 60 months, whichever occurs first, subject to the $1000
earnings limit.
(h) Deferred vested pensioners with less than 20 years of service under the 1974
Pension Plan and miners who will receive a pension with less than 20 years of
service under the 1950 Pension Plan are ineligible for health care. Disability
pensioners under both the 1950 and 1974 Pension Plans will continue to receive
their Health Services card.
(i) Disabled or retarded children of Health Services cardholders will be covered
for life, so long as a surviving parent holds the card.
Explanatory Note on Employer Provided Health Plans
Active miners and their surviving spouses and dependents, and pensioners, their
dependents, and surviving spouses receiving pensions from the 1974 Pension Plan,
will


<PAGE>   84


receive health care provided by their Employer through insurance carriers. A
health services card identifying the Participant's eligibility for benefits
under the health plan shall be provided by the Employer.
The Trustees of the UMWA Health and Retirement Funds shall resolve any disputes,
as provided in Section (e)(5), including excessive fee disputes, to assure
consistent application of the health plan provisions in the Employer Benefit
Plans and of the managed care programs authorized by this Agreement.
Enhanced Cost Containment Program
In an effort to address the problems generated by the ever-increasing cost of
health care, while maintaining a high level of benefits, the parties have
mutually agreed to adopt managed care and cost containment programs.
a. Coordination of Benefits
If an individual is covered as a dependent under both the Employer Benefit Plan
and under a plan maintained by a different employer, the benefits of the two
plans will be coordinated so that no more than the total charges for covered
medical goods and services will be paid. In no event will the Employer Benefit
Plan be required to pay more than it otherwise would have paid without regard to
this provision. The health plan shall coordinate benefits in accordance with the
"birthday rule" adopted by the National Association of Insurance Commissioners.
b. Generic Drug Substitution
If a Beneficiary uses a brand name drug when a generic equivalent is available,
the Beneficiary is responsible for the difference in cost between the generic
drug and the brand name drug, in addition to the normal copayment. A generic
drug will not be considered "available" unless it has been approved by the
federal Food and Drug Administration. In addition, if the prescribing physician
determines that use of a brand name drug is medically necessary, the generic
drug will not be considered "available," and there will be no additional payment
by the beneficiary for the use of the brand name drug.
c. Health Care Payment/Deductible
On January 1 of each year during the term of this Agreement (or such later date
an individual first becomes an eligible Participant), each eligible participant
will receive a lump sum health care payment of $1,000.00. For purposes of this
provision, "eligible participants" means active Employees, laid-off Employees,
and disabled Employees prior to eligibility for Medicare benefits, who are
participants in the Employer Plan maintained pursuant to this Article.
Notwithstanding the foregoing, a laid-off Employee shall receive a pro-rata
health care payment that reflects the number of calendar quarters during which
he is entitled to Employer-provided health care under the plan during the
calendar year. A health care payment shall not be paid to any individual who is
not then entitled to Employer-provided benefits under the Employer Plan.
During the term of this Agreement, 1974 Pension Plan Pensioners under age 65,
and surviving spouses under age 65, whose last signatory employer is signatory
to this Agreement (or to an Agreement with identical employee benefit
obligations) will receive the $1,000 payment described in the preceding
paragraph from the 1974 Pension Plan. Each pensioner and surviving spouse shall
receive a pro-rata payment for the calendar year in which he or she will attain
age 65 that reflects the number of calendar quarters


<PAGE>   85


during such year prior to the month in which he or she attains age 65.
Notwithstanding the foregoing, no payment shall be made to any individual who is
not then entitled to Employer-provided benefits under the Employer Plan or to
any disabled individual eligible for Medicare benefits.
All health benefits provided under the Employer Plan will be subject to a $750
deductible per family per calendar year. The first $750 of all covered medical
expenses incurred by any covered family member will be counted toward satisfying
the deductible. Vision care and prescription drug expenses are not subject to
the deductible. The deductible requirement only applies to benefits provided to
covered active, laid-off, disabled and retired employees (and spouses, surviving
spouses and dependents) under the Employer Plans maintained pursuant to this
Article. Notwithstanding the foregoing: (i) the deductible for a laid-off
employee for a calendar year shall be the pro-rata portion of $750 that reflects
the number of calendar quarters during which he is entitled to Employer-provided
health care under the plan during such year; (ii) the deductible for a pensioner
or a surviving spouse for the calendar year in which he or she will attain age
65 shall be the pro-rata portion of $750 that reflects the number of calendar
quarters during such year prior to the month in which he or she attains age 65;
(iii) the deductible for a disabled employee, or a disabled pensioner under age
65, will cease to be in effect beginning with the first calendar year following
his or her eligibility for Medicare benefits; and (iv) a newly-hired Employee,
an Employee recalled from layoff, or any other individual subject to a health
care payment and deductible who commences coverage after January 1 of a year,
shall receive a pro-rata health care payment, and be subject to an annual
deductible, that reflects the number of calendar quarters remaining in the year.
A family shall not be required to pay a deductible in any calendar year that
exceeds 75 percent of the amount of the Health Care payment paid for that year.
d. Health Care Participating Provider Lists (PPL)
The Employer may implement Participating Provider Lists (PPLs) of physicians,
hospitals, pharmacies and other providers, subject to the following
requirements.
         1. Initial Certification and recertification-All Participating Provider
Lists (PPLs) must be certified prior to their implementation to ensure that they
meet the required standards, and recertified at least once during the term of
this Agreement, in accordance with a procedure to be agreed-to between the UMWA
and the BCOA.
                     The costs of certification and recertification will be
borne by the Employer.
         2. Ongoing review-Continued compliance of each PPL with the required
standards will be subject to ongoing review.
         3. Criteria-A PPL established by an Employer must meet the necessary
criteria. The following is a general statement of the required elements:
         4. Choice-Each covered individual will have the freedom to select any
provider within the PPL, regardless of whether that provider is a generalist or
specialist.
         5. Reduction of Paperwork and Prohibition on Prepayment-Eligible
individuals utilizing PPL providers shall, to the extent possible, not be
required to fill out or submit claims forms. In addition, such individuals shall
not be required to pay a PPL provider any amount other than the copayment and
any outstanding annual deductible permitted under this Agreement.


<PAGE>   86


         6. Quality Certification-All providers must meet quality standards.
         7. Accessibility
         a. Providers will be available within a reasonable distance.
Where possible, this means that a covered individual will not have to travel
more than 20 to 30 minutes to receive general medical care.
         b. There will be adequate numbers of providers in the different
specialties to ensure that each member will have a sufficient choice.
         c. Providers must be available to see covered individuals within a
reasonable period, depending upon the nature of the problem.
         8. Breadth of Scope-The PPL shall include adequate diversification of
specialties and facilities.
         9. Additional Specialties-The program must have provision for going
outside the PPL for necessary specialties and/or facilities that are not
contained within the PPL, at no additional cost to the covered individual.
         10. Other Outside Referrals-The program must have provision for
referral outside the PPL where particular medical services can be better
provided elsewhere in the opinion of the referring PPL provider, at no
additional cost to the covered individual.
         11. Emergencies-Emergency treatment is covered in full (subject to
applicable deductibles and copayments) whether or not provided within the PPL.
         12. Beneficiaries Outside PPL Area-A Beneficiary who lives outside an
area served by the PPL shall be permitted to utilize non-PPL providers without
incurring additional deductibles and copayments. For purposes of determining the
Beneficiary's deductibles and copayments, utilization of such non-PPL providers
shall be considered to be within the PPL.
         13. Transition-Out of PPL-If a beneficiary has begun to undergo a
course of treatment with a non-PPL provider prior to the establishment of the
PPL (or with a PPL provider that leaves the PPL), completion of that course of
treatment will not be considered "out of PPL" as follows:
         a. for an acute condition (including pregnancy, treatment for cancer,
etc.), for the duration of the specific course of treatment.
         b.  for a chronic condition, for up to six months.
         14. Viability-A PPL must be viable, both financially and otherwise, in
order to ensure that it will continue to be able to appropriately serve the
participant population.
         15. Internal Review-Each PPL must have internal mechanisms (including
physician peer review) to resolve member complaints and to ensure that the
highest quality standards are maintained.
         16. Precertification-Precertification for services (including
hospitalization) performed by PPL providers are the responsibility of the
provider, and not the covered individual. In addition, precertification in the
event a covered individual is referred to a provider outside the PPL is the
responsibility of the PPL provider making the referral.
                     Failure to precertify a non-emergency hospital admission to
a non-PPL hospital (other than by referral from a PPL provider) or certain 
other specified inpatient and out-patient procedures performed by a non-PPL 
provider, will subject the Beneficiary to an additional $300 deductible.
         17. Out of PPL Costs

<PAGE>   87


         a. Hospitalization-Benefits for inpatient treatment by a non-PPL
hospital are paid at 90% of the in-PPL rates following exhaustion of the annual
deductible. The Beneficiary is responsible for the remainder of the charges.
         b. Doctor Visits-Each office visit to a non-PPL physician is subject to
a $15 copayment.
         c. The maximum total out-of-pocket expense under a and b above is $1500
per family per year in addition to the annual deductible and the
precertification penalties.
         18. Prescription Drugs-Prescription drugs will be provided through the
PPL at a reduced copayment of $4.50. Prescriptions bought out of PPL are subject
to a $9.00 copayment. Mail order prescription drugs, where available, will be
provided at no copayment. (See chart below.)
e. Each Employer agrees to provide the Union with information sufficient to
evaluate the effectiveness of the cost containment programs adopted pursuant to
this Article. Such information will be provided no less than annually, and shall
include a detailed statement of utilization and costs associated with the
Employer Benefit Plans. After satisfying the annual deductible, the following
co-payments are required under the Employer Benefit Plan:
         In PPL   Out of PPL
Prescription      $4.50 per         $9.00 per
Drugs    prescription      prescription
Prescription      $0 per   Not Applicable
Drugs-Mail        prescription
Order (where
available)
Prescription      $4.50 Plus        $9.00 Plus
Drugs-Brand       Additional        Additional
Name Where        Cost of Brand     Cost of Brand
Generic is        Name Drug         Name Drug
Available
Physician         $10.00 per        $15.00 per
Charges  office visit      office visit
Hospital-         $0       Balance over 90%
and Related                of PPL Charges
Charges
In addition to the annual deductible:
a. No family will have to pay more than $200 for In-PPL Physician office visits
in any year.
b. No family will have to pay more than $1500 in combined Out of PPL Hospital
and Related Charges and Out of PPL Physician office visits. For out-of-PPL
services, and for services provided prior to the establishment of PPLs, claim
forms will be available at most hospitals, clinics, and physician offices.
Generally, nothing more is required than signing the forms authorizing the
hospital, clinic, or physician to bill the insurance carrier for the services
rendered. The insurance carrier will keep individual records for each
Participant and dependent and will notify the Participant of the co-payments
credited to his account. The hospital, clinic, or physician will bill the


<PAGE>   88


Participant for the co-payment amount until the maximum is reached. In some
instances, when the Employee pays for services or drugs, the bills should be
obtained and submitted with the claim form according to the instructions on the
form. If the annual co-payment maximum has been reached, the carrier will remit
to the Participant the full payment for covered benefits.
Where possible, for in-PPL services, no claim forms will be required. The PPL
provider will generally be responsible for the submission of claims and other
paperwork to the insurance carrier. However, Beneficiary may be required to
submit claim forms and bills paid to verify that the annual deductible has been
satisfied. Although a PPL provider may require payment by the Beneficiary of
permitted copayments and deductibles, such a provider may not require payment by
a Beneficiary of amounts that exceed the permitted copayments and deductibles.
Covered drug prescriptions may be filled at drugstores, clinics and hospital
prescription offices.
Each Participant will receive a "Summary Plan Description" booklet. Each year a
financial report of the Plan will be provided to each Participant.
(11) VISION CARE:
Vision care is provided for Employees, disabled Employees, Pensioners, surviving
spouses, and their dependents, covered with a Health Services card through the
Employer Benefit Plan. Coverage under the plan is identical to that provided in
the 1993 Agreement, increased by 10%.
(12) HEALTH CARE COST CONTAINMENT:
The Union and the Employers recognize that rapidly escalating health care costs,
including the costs of medically unnecessary services and inappropriate
treatment, have a detrimental impact on the health benefit program. The Union
and the Employers agree that a solution to this mutual problem requires the
cooperation of both parties, at all levels, to control costs and to work with
the health care community to provide quality health care at reasonable costs.
The Union and the Employers are, therefore, committed to fully support
appropriate programs designed to accomplish this objective. This statement of
purpose in no way implies a reduction of benefits or additional costs for
covered services provided miners, pensioners and their families. 
In any case in which a provider attempts to collect excessive charges
or charges for services not medically necessary, as defined in the Plan, from a
Beneficiary, the Plan Administrator or its agent shall, with the written
consent of the Beneficiary, attempt to resolve the matter, either by
negotiating a resolution or defending any legal action commenced by the
provider. Whether the Plan Administrator or its agent negotiates a resolution
of a matter or defends a legal action on a Beneficiary's behalf, the
Beneficiary shall not be responsible for any legal fees, settlements, judgments
or other expenses in connection with the case, but may be liable for any
services of the provider which are not provided under the Plan. The Plan
Administrator or its agent shall have sole control over the conduct of the
defense, including the determination of whether the claim should be settled or
an adverse determination should be appealed. The protections of this paragraph
shall not apply until the deductible is met in full for the year, and shall not
apply in the case of any service or supply obtained from a non-PPL source,
until the out-of-pocket maximum is reached.


<PAGE>   89


(13) NATIONAL HEALTH CARE:
Notwithstanding any other provision of this Article, in the event the United
States Government enacts a system of comprehensive national health care that
provides an alternative means of providing benefits required under this Article,
then either the UMWA or the BCOA may, without affecting the integrity of any
other provision of this Agreement, reopen this Agreement for the purpose of
negotiating modifications to the Employer Plan, the 1993 Benefit Plan and Trust,
or both. Additionally, the 1993 Benefit Trust may be renegotiated at the
termination of this Agreement.
Article XXA-DENTAL PLAN
INTRODUCTION
The Plan provides dental benefits for Employees and their eligible Dependents at
a cost to each Employee of $2 per month payable on a payroll deduction basis, or
if applicable as a reduction in the Employee's Sickness and Accident Benefits if
such Employee is disabled and receiving such Benefits during the particular
month.
TABLE OF CONTENTS
SECTION I Definitions
SECTION II Eligibility
A.       Employees
B.       Effective Date of Coverage
C.       Eligible Dependents
SECTION III Benefits
A.       Payment of Benefits
B.       Maximum Benefits
C.       Claims Not Requiring Predetermination of Benefits
D.       Claims Requiring Predetermination of Benefits
E.       Covered Dental Expenses
F.       Limitation
G.       Exclusions
H.       Date Expenses Are Incurred
I.       Subrogation
J.       Non-Duplication
SECTION IV Termination of Coverage
A.       Disability
B.       Layoff
C.       Article III, Section (j)-Wage Agreement
D.       Death of Employee
E.       Leave of Absence or Retirement
F.       Quit or Discharge
SECTION V Schedule of Benefits
SECTION I  Definitions
The following terms shall have the meaning herein set forth:
(1) "Employer" means (Name of Company).
(2) "Wage Agreement" means the National Bituminous Coal Wage Agreement of 1998.


<PAGE>   90


(3) "Plan Administrator" shall be the Employer, a subsidiary of the Employer, an
affiliated company of the Employer or an employee of the Employer, as designated
by the Employer.
(4) "Employee" shall mean a person actively working in a classified job for the
Employer, eligible to receive dental benefits pursuant to Section II.
(5) "Dependent" shall mean any person described in paragraph C of Section II.
(6) "Attains the age" shall mean on or after 12:01 A.M. of the anniversary date
of one's birth.
SECTION II  Eligibility
The persons eligible to receive the dental benefits pursuant to Section III are
as follows:
A. EMPLOYEES
Benefits under Section III shall be provided to any Employee who has completed 6
months of classified employment with the Employer and:
         (1)      is actively at work on the effective date of this Plan; or
         (2)      is actively at work on or after the effective date of the Wage
Agreement and is disabled and receiving or would, upon proper application, be
eligible to receive Sickness and Accident Benefits pursuant to the Wage
Agreement.
Except as provided in (2) above, any Employee of the Employer who is not
actively at work for the Employer on the effective date of this Plan will not be
eligible for coverage under this Plan until the later of the date the Employee
         (1)      returns to active employment with the Employer, or
         (2)      completes 6 months of classified employment with the Employer.
A new Employee will not be eligible for coverage under this Plan until such
Employee completes 6 months of classified employment with the Employer.
B. EFFECTIVE DATE OF COVERAGE
Coverage will become effective as of the first day of the month following the
date the Employee becomes eligible pursuant to paragraph
A above.
C. ELIGIBLE DEPENDENTS
Dental benefits under Section III shall be provided to the following dependents
of an Employee eligible for dental coverage pursuant to paragraph A above:
         (1) A spouse who is living in the same household (residence) with the
eligible Employee;
         (2)      Unmarried dependent children of an eligible Employee
         (i)      Who have not attained age 19;
         (ii)     and are living in the same household with the eligible 
Employee, unless such child is a full-time student.
The term "Dependents" does not include a person who is covered under any other
group dental plan or program toward the cost of which the Employer contributes
or who is covered as an Employee under this Plan.
SECTION III  Benefits
A. PAYMENT OF BENEFITS
After application of a Benefit Year (October 1st-September 30th) deductible
amount of $50 for you and $50 for each of your Dependents for other than
preventive services (those procedures prefaced by an asterisk in the Schedule of
Benefits), and subject to the maximums specified in this Plan, benefits are
payable in accordance with the Schedule of
<PAGE>   91


Benefits set out in Section V, but in no event will the benefit for a
specific dental service be greater than the dentist's charge for the specific
dental procedure.
B. MAXIMUM BENEFITS
After application of the Benefit Year deductible(s) referred to in paragraph A
above:
         (1) The maximum benefit payable for all Covered Dental Expenses
incurred during any Benefit Year (excluding orthodontic benefits which are not
subject to this limitation) shall be $990 for you and $990 for each of your
dependents.
         (2) In applying the maximums referred to in (1) above, benefits for
Covered Dental Expenses paid under any other group dental plan or program toward
the cost of which the Employer contributes shall be considered to have been paid
under this Plan.
         (3) The maximum orthodontic benefit during any Benefit Year shall be
$550 for each of your eligible Dependents prior to the attainment of age 21,
with a lifetime maximum of $1650 for each such Dependent.
C. CLAIMS NOT REQUIRING PREDETERMINATION OF BENEFITS
When Covered Dental Expenses are incurred by you or one of your Dependents for
emergency treatment, routine oral examinations, X-rays, prophylaxis, fluoride
treatments or a course of treatment, the charge for which is not expected to
exceed $150, predetermination of benefits (paragraph D below) is not required.
The claims administrator will make the applicable benefit payment; however, any
of the dentist's charges not payable under the provisions of the Dental Benefits
coverage will be your responsibility.
D. CLAIMS REQUIRING PREDETERMINATION OF BENEFITS
If a course of treatment for you or one of your Dependents can reasonably be
expected to involve dentist's charges of $150 or more, or if a course of
treatment is for orthodontia, a description of the procedures to be performed
and an estimate of the dentist's charges must be filed with the claims
administrator prior to the commencement of the course of treatment.
For orthodontic procedures, the treatment plan must (1) provide a classification
of malocclusion; (2) recommend and describe necessary treatment by orthodontic
procedures; (3) estimate the duration over which treatment will be completed;
(4) estimate the total charge for treatment; and (5) be accompanied by
cephalometric x-rays, study models and other supporting evidence the claims
administrator may require. As used herein "course of treatment" means a planned
program of one or more services or supplies, whether rendered by one or more
dentists for the treatment of a dental condition diagnosed by the attending
dentist as a result of an oral examination. The course of treatment commences on
the date a dentist first renders a service to correct or treat such diagnosed
dental condition.
The claims administrator will notify you and your dentist of the benefits
certified as payable based upon such course of treatment within 30 days of
receipt of the request for predetermination, or, if such certification cannot be
made within 30 days, the claims administrator will notify you why a
certification has been delayed. In determining the amount of benefits payable,
consideration will be given to alternate procedures, services or courses of
treatment that may be performed for such dental condition in order to accomplish
the desired result. The amount included as certified dental expenses will be the
appropriate amount determined in accordance with the provisions of paragraph E


<PAGE>   92


below, subject to the maximums set forth in paragraph B above and the
limitations set forth in paragraph F below. If you and your dentist agree to a
charge higher than the amount predetermined by the claims administrator, such
excess will not be paid by the Plan and will be your responsibility.
If description of the procedures to be performed and an estimate of the
dentist's charges are not submitted in advance, the claims administrator
reserves the right to make a determination of benefits payable taking into
account alternate procedures, services or courses of treatment, based on
accepted standards of dental practice.
E. COVERED DENTAL EXPENSES
Covered Dental Expenses are those procedures specified in Section V incurred in
connection with dental services which are performed by:
         (1) a licensed dentist practicing within the scope of his license, or
         (2) a licensed physician authorized by his license to perform the
particular dental services rendered but only to the extent such charges are for
services and supplies customarily employed for treatment of that dental
condition and only if rendered in accordance with accepted standards of dental
practice.
F. LIMITATIONS
The following limitations* apply:
(*In respect of those services and/or supplies subject to a time period
limitation, such period will be determined on a date-to-date basis measured from
the date of service.)
         (1) Routine oral examinations and prophylaxis (scaling and cleaning of
teeth) are limited to not more than two in any period of 12 consecutive months.
         (2) Space maintainer (a fixed or removable appliance designed to
prevent adjacent and opposing teeth from moving) that replaces prematurely lost
teeth are provided only for eligible Dependents prior to the attainment of age
21.
         (3) Full mouth X-rays are limited to once in any period of 36
consecutive months and supplementary bitewing X-rays are limited to not more
than two in any period of 12 consecutive months.
         (4) Relining or rebasing of dentures are limited to once in any period
of 36 consecutive months, provided such relining or rebasing occurs more than
six months after the initial installation or replacement.
         (5) Adjustments to partial or full removal dentures are limited to the
first six months following the date of installation.
         (6) The addition of teeth to an existing partial removable denture or
to bridgework is provided only if satisfactory evidence is presented that:
         (i) the replacement or addition of teeth is required to replace one or
more teeth extracted after the existing denture or bridgework was installed; or
         (ii) the existing denture or bridgework cannot be made serviceable and
it was installed at least five years prior to the date of its replacement; or
         (iii) the existing denture is an immediate temporary denture which
cannot be made permanent and replacement by a permanent denture takes place
within 12 months from the date of initial installation of the immediate
temporary denture.
                  Normally, dentures will be replaced by dentures but if a
professionally adequate result can be achieved only with bridgework, such
bridgework will be a Covered Dental Expense.


<PAGE>   93


         (7) Gold, Baked Porcelain Restorations, Crowns and Jackets-If a tooth
can be restored with a material such as amalgam, payment of the benefit, as
contained in Section V, for that procedure will be made toward the charge for
another type of restoration which you and your dentist may select. In such case,
you are responsible for the balance of the treatment charge.
         (8) Reconstruction-Payment of the benefit, as contained in Section V,
will be made toward the cost of procedures necessary to eliminate oral disease
and to replace missing teeth. Appliances or restorations necessary to alter
vertical dimension in restoring occlusion are provided only for eligible
Dependents prior to the attainment of age 21.
         (9) Partial Dentures-If a cast chrome or acrylic partial denture will
restore the dental arch satisfactorily, payment of the benefit, as contained in
Section V, for such procedure will be made toward a more elaborate or precision
appliance that you and your dentist may choose to use; the balance of the cost
remains your responsibility.
         (10) Precision Attachments-Benefits will not be provided for precision
attachments when used for cosmetic purposes.
         (11) Dentures-If, in the provision of denture services, you and your
dentist decide on personalized or specialized techniques as opposed to standard
procedures, payment of the benefit, as contained in Section V, for the standard
denture services will be made toward such treatment and the balance of the cost
remains your responsibility.
         (12) Replacement of Existing Dentures or Fixed Bridgework-Replacement
of an existing denture or fixed bridgework will be a Covered Dental Expense only
if the existing denture or fixed bridgework is unserviceable and cannot be made
serviceable. Payment of the benefit, as contained in Section V, for such service
will be made toward the cost of services which are necessary to render such
appliances serviceable. Replacement of prosthodontic appliances will be a
Covered Dental Expense only if at least five years have elapsed since the date
of the initial installation of that appliance.
         (13) Courses of Treatment in Progress on Effective Date of Dental
Benefits:
         Benefits are not provided for treatment received prior to commencement
of coverage. Claims for a course of treatment which was started prior to
commencement of coverage but completed while coverage is in force will be
investigated to determine the amount of the entire fee which should be allocated
to the treatment which was actually received while covered. Only that portion of
the total fee which can be allocated to treatment received while covered will be
included as a Covered Dental Expense. 
G. EXCLUSIONS
Charges for the following are not Covered Dental Expenses:
         (1) Services other than those specifically listed in the Schedule of
Benefits;
         (2) Treatment by other than a licensed dentist or licensed physician,
except (a) charges for scaling or cleaning of teeth and topical application of
fluoride may be performed by a licensed dental hygienist if the treatment is
rendered under the supervision and guidance of and billed for by the dentist;
and (b) charges by a dental school if
         (i)      the services are not experimental,
         (ii)     the dental school customarily charges for services and
         (iii) the services are performed under the supervision of a licensed
dentist;

<PAGE>   94


         (3) Local infiltration anesthetic;
         (4) Substances or agents which are administered to minimize fear or
charges for analgesia, unless the patient is handicapped by cerebral palsy,
mental retardation or spastic disorder;
         (5) Veneers (the coating or covering of plastic or porcelain on the
outside of and bonded to a crown or false tooth to cause it to blend with the
color of surrounding teeth) or similar properties of crowns and pontics placed
on or replacing teeth, other than the 10 upper and lower anterior teeth;
         (6) Services or supplies that are cosmetic in nature, including charges
for personalization or characterization of dentures;
         (7) Prosthetic devices (including bridges), crowns, inlays and onlays,
and the fitting thereof which were ordered while the individual was not covered
for Dental Benefits, or which were ordered while the individual was covered for
Dental Benefits but are finally installed or delivered to such individual more
than 60 calendar days after the date of termination of coverage;
As used herein "ordered" means, in the case of dentures, that impressions have
been taken from which the denture will be prepared; and, in the case of fixed
bridgework, restorative crowns, inlays and onlays, that the teeth which will
serve as abutments or support or which are being restored have been fully
prepared to receive, and impressions have been taken from which will be prepared
the bridgework, crowns, inlays or onlays.
         (8) Replacement of a lost, missing or stolen prosthetic device;
         (9) Orthodontic procedures and/or treatment provided to anyone other
than an eligible Dependent prior to the attainment of age 21;
         (10) Any services which are covered by any workers' compensation laws
or employer's liability laws, or services which an employer is required by law
to furnish in whole or in part;
         (11) Services rendered through a medical department, clinic or similar
facility provided or maintained by the patient's employer;
         (12) Services or supplies for which no charge is made that you are
legally obligated to pay or for which no charge would be made in the absence of
dental expense coverage;
         (13) Services or supplies which are not necessary, according to
accepted standards of dental practice, or which are not recommended or approved
by the attending dentist;
         (14) Services or supplies which do not meet accepted standards of
dental practice, including charges for services or supplies which are
experimental in nature;
         (15) Services or supplies received as a result of dental disease,
defect or injury resulting from the commission of a felony or due to an act of
war, declared or undeclared;
         (16) Services or supplies which are obtained by you or your Dependent
from any governmental agency without cost by compliance with laws or regulations
enacted by any governmental body;
         (17) Any duplicate prosthetic device or any other duplicate appliance;
         (18) Charges for any services to the extent for which benefits are
payable under any health insurance program supported in whole or in part by
funds of the federal government or any state or political subdivision thereof;


<PAGE>   95


         (19) Sealants (materials, other than fluorides, painted on the grooves
of the teeth in an attempt to prevent future decay) and for oral hygiene and
dietary instruction;
         (20) A plaque control program (a series of instructions on the care of
the teeth);
         (21) Implantology (an insert set firmly or deeply into or onto the part
of the bone that surrounds and supports the teeth); and
         (22) Periodontal splinting.
H. DATE EXPENSES ARE INCURRED
Benefits are provided only for Covered Dental Expenses incurred on a date when
coverage by the Dental Benefits provisions in this Plan is in effect for you or
your Dependent who incurs such expenses. Covered Dental Expenses are considered
to have been incurred on the date when the applicable dental services, supplies
or treatments are received, except as otherwise provided in paragraph G(7).
I. SUBROGATION
The Plan does not assume primary responsibility for Covered Dental Expenses
which another party is obligated to pay or which another insurance policy or
other dental plan covers. Where there is a dispute between the carriers, the
Plan shall, subject to provisions (1) and (2) immediately below, pay for such
Covered Dental Expenses but only as a convenience to you or your Dependent and
only upon receipt of an appropriate indemnification or subrogation agreement;
but the primary and ultimate responsibility for payment shall remain with the
other party or carrier.
Obligations to pay benefits on behalf of you or your Dependent shall be
conditioned upon you or your Dependent:
         (1) taking all steps necessary or desirable to recover the costs
thereof from any third party who may be obligated therefor, and
         (2) upon you or your Dependent executing such documents as are
reasonably required by the Plan Administrator, including, but not limited to, an
assignment of rights to receive such third party payments, in order to protect
and perfect the Plan's right to reimbursement from any such third party.
J. NON-DUPLICATION
The Dental Benefits provided under this Plan are subject to a non-duplication
provision as follows:
         (1) Benefits will be reduced by benefits provided under any other group
plan so that the total paid by both plans does not exceed the total reasonable
cost of the procedure, including a plan of another Employer signatory to the
Wage Agreement, if the other plan:
         (i) does not include a coordination of benefits or non-duplication
provision, or
         (ii) includes a coordination of benefits or non-duplication provision
and is the primary plan as compared to this Plan.
         (2) In determining whether this Plan or another group plan is primary,
the following criteria will be applied:
         (i) The Plan covering the patient other than as a dependent will be the
primary plan.

<PAGE>   96


         (ii) Where both plans cover the patient as a dependent child, the plan
covering the patient as a dependent child of the individual whose birthday
occurs earlier in the calendar year will be the primary plan.
         (iii) Where the determination cannot be made in accordance with (i) and
(ii) above, the plan which has covered the patient the longer period of time
will be the primary plan.
         (3) As used herein, "group plan" means:
         (i) any plan covering the individuals as members of a group and
providing dental benefits or services through group insurance or a group
prepayment arrangement, or
         (ii) any plan covering individuals as employees of an employer and
providing such benefits or services, whether on an insured, prepayment or
uninsured basis.
         (4) If it is determined that benefits under this Plan should have been
reduced because of benefits provided under another group plan, the Plan
Administrator shall have the right to recover any payment already made which is
in excess of the Plan's liability. Similarly, whenever benefits which are
payable under the Plan have been provided under another group plan, the Plan
Administrator may make reimbursement directly to the insurance company or other
organization providing benefits under the other plan.
         (5) For the purpose of this provision the Plan Administrator may,
without consent of or notice to you or your Dependent, release to or obtain from
any insurance company or other organization or person any information which may
be necessary regarding coverage, expense and benefits.
         (6) If you or your Dependent is claiming benefits under this Plan, you
or such Dependent must furnish the Plan Administrator such information as may be
necessary for the purpose of administering this provision.
SECTION IV  Termination of Coverage
If an Employee ceases active work, coverage will be terminated as set forth
below:
A. DISABILITY
Coverage will terminate on the date such Employee ceases to be eligible for
Sickness and Accident Benefits pursuant to the Wage Agreement.
B. LAYOFF
Coverage will terminate at the end of the month in which the Employee last
worked.
C. ARTICLE III, Section (j)-WAGE AGREEMENT
Coverage will terminate at the end of the month in which the Employee last
worked, unless the Employee is eligible for Sickness and Accident Benefits
pursuant to the Wage Agreement.
D. DEATH OF EMPLOYEE
Coverage for the eligible Dependents of the deceased Employee will terminate at
the end of the month in which the Employee died.
E. LEAVE OF ABSENCE OR RETIREMENT
Coverage will terminate as of the last day worked.
F. QUIT OR DISCHARGE
Coverage will terminate as of the last day worked.
G. SELF PAY FOR CONTINUATION COVERAGE

<PAGE>   97


Each Employee and eligible Dependent shall have the right to self pay for
continuation coverage pursuant to the requirements of Sections 601 et seq. of
the Employee Retirement Income Security Act of 1974.
SECTION V  Schedule of Benefits
Procedures prefaced by an asterisk (*) are not subject to the Benefit Year
deductible; all other procedures are subject to the Benefit Year deductible.
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
Clinical Oral Examination
0110     *        Initial Oral Examination                              $ 13.20
0120     *        Periodic Oral Examination                               13.20
0130     *        Emergency Oral Examination                              18.48
X-Rays
0210              Intra-Oral Complete X-Rays                              30.62
0220              Intra-Oral-Single X-Ray                                  6.34
0230              Intra-Oral X-Ray-Additional                              1.06
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
0240              Intra-Oral-Occlusal Single X-Ray                         7.39
0250              Extra-Oral Single X-Ray                                 15.84
0260              Extra-Oral X-Ray-Additional                              6.34
0270              Bitewing Single X-Ray                                    6.34
0272              Bitewings-2 films                                        8.45
0273              Bitewings-3 films                                       10.56
0274              Bitewings-4 films                                       12.67
0280              Bitewing X-Ray-Additional                                2.11
0290              Posteroanterio & Lateral Skull X-Ray                    24.29
0321              Temporo-Mandibular Joint X-Ray                          26.40
0330              Panoramic-Maxillary and Mandibular X-Ray                29.57
0390              X-Rays-Misc. Tests and Laboratory 
                  Examination                                             20.06
0410     *        Bacteriologic Cultures (Pathologic Agent)               14.78
0420     *        Caries Susceptibility Tests                              8.45
0460     *        Pulp Vitality Tests                                      6.34
0470              Diagnostic Models, in Connection with 
                  Endodontic or Periodontic Treatment                     23.23
0470              Diagnostic Models, in Connection

<PAGE>   98


                  with Prosthodontic Treatment                             14.52
0471              Diagnostic Photographs, in Connection
                  with Endodontic or Periodontic Treatment                 14.78
0471              Diagnostic Photographs, in Connection
                  with Prosthodontic Treatment                              9.24
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
                  Dental Prophylaxis
1110     *        Dental Prophylaxis-Adults                                22.44
1120     *        Dental Prophylaxis-Children Fluoride 
                  Treatments                                               15.84
1210     *        Top Appl Sodium Fluo EX Pro                              22.44
1211     *        Top Appl Sodium Fluo INC Pro                             26.40
1220     *        Top Appl Stannous Fluo EX Pro                            15.84
1221     *        Top Appl Stannous Fluo INC Pro                           19.80
1230     *        Top Appl Acid Fluo Phos EX Pro                           15.84
1231     *        Top Appl Acid Fluo Phos INC Pro Space 
                  Maintainers                                              19.80
1510     *        Fixed Unilateral Type                                    99.00
1512     *        Fixed Distal Shoe-Type                                  132.00
1515     *        Fixed-Bilateral Type                                    118.80
1520     *        Removable Unilateral Type                               132.00
1525     *        Removable Bilateral Type                                132.00
1540     *        Additional Clasps/Activating
                  Wires                                                    10.56
1550              Recement of Space Maintainer Amalgam 
                  Restoration                                              20.06
2110              Amalgam One Surface-Primary                              14.78
2120              Amalgam Two Surfaces-Primary                             23.23
2130              Amalgam Three Surfaces-Primary                           31.68
2131              Amalgam Four or More Surfaces-Primary                    40.13
2140              Amalgam One Surface-Permanent                            14.78
2150              Amalgam Two Surfaces-Permanent                           25.34
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
2160              Amalgam Three Surfaces-Permanent                         36.96
2161              Amalgam Four or More Surfaces-Permanent                  42.24
2190              Reinforcing Pin Silicate Restoration                     12.67


<PAGE>   99


2210              Silicate-Per Restoration                    21.12
                  Acrylic or Plastic Restoration
2310              Acrylic or Plastic-Per Restoration          29.57
2320              Acrylic or Plastic/Incisal Angle            36.96
2330              Composite Resin 1 Surface                   23.23
2331              Composite Resin 2 Surfaces                  41.18
2332              Composite Resin 3 Surfaces                  59.14
2334              Pin Retention Ex Composite                  12.67
2335              Composite Resin Incisal Angle               52.80
2340              Acid Etch For Restorations                  12.67
                  Gold Foil Restoration                       
2410              Gold Foil Restoration-One Surface           84.48
2420              Gold Foil Restoration-Two Surfaces         147.84
2430              Gold Foil Restoration-Three Surfaces       168.96
                  Gold Inlay Restoration
2510              Gold Inlay-One Surface                     137.28
2520              Gold Inlay-Two Surfaces                    168.96
2530              Gold Inlay-Three Surfaces                  190.08
2540              Gold Onlay                                  30.62
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
                  Porcelain Restorations
2610              Porcelain Inlay                            132.00
                  Crown-Single Restorations
2710              Crown-Plastic/Acrylic                      168.96
2711              Plastic-Prefabricated Crown                 52.80
2720              Crown-Plastic with Gold                    242.88
2721              Crown-Plastic/Nonprecious                  217.54
2722              Crown-Plastic/Semiprecious                 217.54
2740              Crown-Porcelain                            232.32
2750              Crown-Porcelain with Gold                  290.40
2751              Crown-Porcelain/Nonprecious                253.44
2752              Crown-Porcelain/Semiprecious               257.66
2790              Crown-Gold Full Cast                       253.44
2791              Crown-Nonprecious-Full Cast                225.98
2792              Crown-Semiprecious-Full Cast               244.99
2810              Crown-Gold 3/4 Cast                        211.20
2820              Crown-Gold Thimble                         126.72
2830              Crown-Stainless Steel                       52.80
2840              Crown-Temporary                             40.13
2891              Crown Post and Care                         63.36
2892              Crown-Amalgam/Composite


<PAGE>   100


                  Build Up-W.P.                                 72.86
                  Other
2910              Recement Inlay                                17.95
2920              Recement Crown                                17.95
2940              Fillings-Sedative                             14.78
2950              Crown Buildup-Pin Retained                    67.58
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
                  Pulp Capping
3110              Pulp Cap-Direct                               12.67
3120              Pulp Cap-Indirect                             10.56
                  Pulpotomy
3210              Therapeutic Apical Closure                    20.06
3220              Vital Pulpotomy                               26.40
Root Canal Therapy
3310              Root Canal Therapy-One Canal                 153.12
3311              Root Canal-Sargenti Method-
One               122.50
3320              Root Canal Therapy-Two Canals                190.08
3321              Root Canal-Sargenti Method-
Two               160.51                                      
3330              Root Canal Therapy-Three Canals              285.12
3331              Root Canal-Sargenti Method-Three             232.32
3340              Root Canal Therapy-Four Canals               316.80
3350              Apexification                                 40.13
                  Periapical Services
3410              Apicoectomy                                  105.60
3420              Apicoectomy with Endodontic Manipulation     190.08
3430              Retrofilling                                  79.20
3440              Apical Curettage                              79.20
3450              Root Amputation                               79.20
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
                  Other Endodontic Procedures
3910              Surgical Procedure-Rubber Dam                 20.06
3920              Hemisection                                   65.47
3930              Canal and/or Pulp Chamber Enlargement          7.39


<PAGE>   101


3940              Recalcification                              21.12
3950              Canal Prep Fitting Dowel Post                32.74
3990              Emergency Procedure                          20.06
                  Surgical Services
4210              Gingivectomy or Gingivoplasty               105.60
4220              Gingival Curettage                           32.74
4240              Gingival Flap Procedure                     137.28
4250              Mucogingival Surgery Per Quad               137.28
4260              Osseous Surgery Quadrant                    264.00
4261              Osseous Graft Single Site                    85.54
4262              Osseous Graft Multiple Site                 118.27
4270              Pedicle Soft Tissue Graft                    79.20
4271              Free Soft Tissue Graft                       79.20
4272              Vestibuloplasty                             163.68
4280              Periodontal Pulpal Procedures                52.80
                  Adjunctive Services
4320              Provisional Splinting Intra-Coronal          65.47
4321              Provisional Splinting Extra-Coronal          65.47
4330              Limited Occlusal Adjustment                  26.40
4331              Complete Occlusal Adjustment                 95.04
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
4340              Scaling & Root Planting Entire Mouth          3.36
4341              Scaling & Root Planting-Per Quadrant         15.84
4350              Tooth Movement for Periodontal Purposes      65.47
4360              Special Periodontal Appliances (B/R)        143.62
                  Miscellaneous Services
4910              Preventive Periodontal Procedures            31.68
4920              Unscheduled Dressing Change                  12.67
                  Complete Dentures
5110              Complete Upper Denture                      247.50
5120              Complete Lower Denture                      247.50
5130              Immediate Upper Denture                     264.00
5140              Immediate Lower Denture                     247.50
                  Partial Dentures
5211              Upper Partial Denture W/O Clasps            223.08
5212              Lower Partial Denture W/O Clasps            223.08
5215              PUD 2 Gold Clasp Acrylic Base               264.00


<PAGE>   102


5216              PUD 2 Chrome Clasp Acrylic Base             264.00
5217              PLD 2 Gold Clasp Acrylic Base               264.00
5218              PLD 2 Chrome Clasp Acrylic Base             264.00
5230              PLD Gold L/Bar 2/C Acrylic Base             264.00
5231              PLD Chrome L/Bar 2/C Acrylic Base           264.00
5240              PLD Gold L/Bar 2/C Cast Base                264.00
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
5241              PLD Chrome L/Bar 2/C Cast Base              264.00
5250              PUD Gold P/Bar 2/C Acrylic Base             264.00
5251              PUD Chrome P/Bar 2/C Acrylic Base           264.00
5260              PUD Gold P/Bar 2/C Cast Base                303.60
5261              PUD Chrome P/Bar 2/C Cast Base              303.60
5280              Unilateral Partial Denture-Gold              49.50
5281              Unilateral Partial Denture-Chrome            49.50
5291              PUD Full Cast 2 Gold Clasps                 313.50
5292              PUD Full Cast 2 Chrome Clasps               313.50
5293              PLD Full Cast 2 Gold Clasps                 313.50
5294              PLD Full Cast 2 Chrome Clasps               313.50
                  Additional Units For Partial Dentures
5310              Each Additional Clasp/Rest                   29.70
5320              Each Tooth (Applies to 5291-5294 Only)       14.52
                  Adjustments to Dentures
5410              Complete Denture Adjustment                  14.52
5421              Partial Denture Adjust (Upper)               14.52
5422              Partial Denture Adjust (Lower)               14.52
                  Repairs to Dentures
5610              Repair Broken Denture-No Tooth Damage        42.24
5620              Repair Broken Denture-Replace One Tooth      47.52
5630              Repair Denture/Replace Additional Tooth      23.23
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
5640              Replace Broken Tooth on Denture              26.40
5650              Add Tooth to Partial Denture-No Clasp        58.08
5660              Add Tooth to Partial Denture-


<PAGE>   103


                  W/Clasp                                                 79.20
5670              Reattaching Damaged Clasp on
                  Denture                                                 40.13
5680              Replace Clasp on Denture                                63.36
5690              Replace Additional Clasp on Denture                     52.80
                  Denture Relining
5710              Dupl U or L Complete Denture-Jump Case                 126.72
5720              Dupl U or L Partial Denture-Jump Case                  126.72
5730              Reline U or L Complete Denture-Off/Rel                  91.87
5740              Reline U or L Partial Denture-Off/Rel                   91.87
5750              Reline Complete Denture-Laboratory                     116.16
5760              Reline Partial Denture-Laboratory                      116.16
                  Prosthetic Services
5820              Temporary PUD (Stayplate)                               99.00 
5821              Temporary PLD (Stayplate)                               99.00 
5830              Obturator Excised Palatal Tissue                       280.50
5840              Obturator/Cleft Palate                                 280.50
5850              Tissue Conditioning                                     23.10
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
                  Bridge Pontics
6210              Bridge Pontics-Cast Gold                               118.80
6211              Bridge Pontics-Nonprecious                             102.96
6212              Bridge Pontics-Semi-Precious                           110.88
6220              Bridge Pontics-Steeles Facing                          114.84
6230              Bridge Pontics-Tru Pontic                              114.84 
6235              Bridge Pontics-Pin Facing                              114.84 
6240              Bridge Pontics-Porcelain Fused to Gold                 155.10
6241              BDG Pontic-Porc/Nonprecious                            122.10
6242              BDG Pontic-Porc/Semi-Precious                          122.10
6250              Bridge Pontics-Plastic Processed to Gold               145.20
6251              BDG Pontic-Plastic/Nonprecious                         129.36
6252              BDG Pontic-Plastic/Semi-Precious                       137.28
                  Abutments
6520              Two Surface Gold Inlay                                 105.60
6530              Three or More Surface Gold


<PAGE>   104


                  Inlay                                                 118.80
6540              Gold Inlay (Onlaying Cusps)                            19.80
                  Bridge Repair                                     
6610              Replace Broken Pin Facing with Steeles                 42.24
6620              Replace Broken Facing-Post Intact                      40.13
6630              Replace Broken Facing-Post
                  Broken                                                 52.80
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
6640              Replace Broken Facing with Acrylic                     40.13
6650              Replace Broken Tru Pontic                              54.91
                  Bridge Crowns
6710              Bridge Crown-Plastic Acrylic                           95.70
6720              Bridge Crown-Plastic Processed to Gold                158.40
6721              BDG-Crown-Plastic/Nonprecious                         132.00
6722              BDG-Crown-Plastic/Semi-Precious                       138.60
6740              Bridge Crown-Porcelain                                145.20
6750              Bridge Crown-Porcelain Fused to Gold                  181.50
6751              BDG-Crown Porcelain/Nonprecious                       158.40
6752              BDG-Crown Porcelain/Semi-Precious                     158.40
6760              Reverse Pin Facing and Metal                          158.40
6780              Bridge Crown-Gold/Three Fourths Cast                  118.80
6790              Bridge Crown-Gold/Full Cast                           132.00
6791              Bridge Crown-Nonprecious/Full Cast                    115.50
6792              Bridge Crown-Semi-Precious/Full Cast                  125.40
                  Bridge Services
6930              Bridge-Recement                                        30.62
6940              Bridge-Stress Breaker                                  39.60
6960              Bridge Dowel Pin. Metal                                49.50
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
                  Oral Surgery
     

<PAGE>   105


                  Uncomplicated Extractions
7110              Uncomplicated Extraction-Single Tooth                  20.06
7120              Uncomplicated Extraction-Additional                    14.78
                  Surgical Extractions
7210              Surgical Extraction-Tooth, Erupted                     32.74
7220              Surgical Extraction-Tooth, Tissue Impact               46.46
7230              Extract Tooth-Partially Bony Impaction                 65.47
7240              Extract Tooth-Completely Bony Impaction                99.26
7250              Surgical Extraction-Root Recovery                      46.46
7260              Extraction-Oral Antral Fistula Closure                145.73
7270              Surgical-Tooth Replantation                            72.86
7281              Surgical Exposure and Erupt                            46.46
7290              Surgical-Repositioning of Teeth                        65.47
                  Alveoplasty                                                 
7310              Alveoplasty-Per Quadrant W/Extraction                  40.13
7320              Alveoplasty-Per Quadrant W/O Extraction                48.58
7330              Alveoplasty-Cuspid to Cuspid                           40.13
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN
7340              Stomatoplasty. Per Arch. Uncomplicated                 65.47
7350              Stomatoplasty. Per Arch. Complicated                  223.87
                  Surgical Excision
7410              Radical Excision. Up to 1/2 Inch                       65.47 
7420              Radical Excision. Over 1/2 Inch                       171.07 
7425              Excision Pericoronal Gingiva                          171.07 
7450              Removal Odontogenic Cyst to 1/2 Inch                   65.47 
7451              Removal Odontogenic Cyst Over 1/2 inch                171.07 
7470              Removal of Exostosis                                   99.26
7480              Partial Ostectomy                                     132.00
7490              Radical Resection of Mandible                         528.00
                  Surgical Incision


<PAGE>   106


7510              Incision/Drainage of Abscess, Intra-Oral                26.40
7520              Incision/Drainage of Abscess, Extra-Oral                52.80
7530              Removal of Foreign Body                                 26.40
7540              Removal of Reaction Producing Bodies                    52.80
7550              Sequestrectomy for Osteomyelitis                       132.00
7560              Max Sinusotomy-Foreign Body                            152.06
                  Reduction of Dislocation
7810              Open Reduction of Dislocation                          495.26
7820              Closed Reduction of Dislocation                         65.47
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER
         CODE     DESCRIPTION       THE PLAN                       
7830              Manipulation Under Anesthesia                           65.47
7840              Condylectomy                                           462.53
7850              Menisectomy                                            462.53
7860              Arthrotomy                                             310.46
7870              Arthrocentesis                                          52.80
                  Other Oral Surgery                                           
7910              Simple Suturing                                         40.13
7911              Complicated Suturing-Up to 2 Inches                    145.73
7912              Complicated Suturing-Over 2 Inches                     164.74
7920              Skin Grafts                                            105.60
7930              Injection of Trigeminal Nerve                           79.20
7931              Avulsion of Trigeminal Nerve                           118.27
7940              Osteoplasty                                            660.00
7950              Osteoperiosteal                                        528.00
7955              Repair Maxillo Facial Tissue                            59.14
7960              Frenulectomy                                            52.80
7970              Excision of Hyperplastic Tissue                         79.20
7980              Sialolithotomy Extra-Oral                              264.00
7981              Excision of Salivary Gland                             231.26
7982              Sialodochoplasty                                       363.26
7983              Closure of Salivary Fistula                            396.00
                  Adjunctive General Services
                  Unclassified Treatment
9110     *        Palliative Emergency Treatment                          18.48
                           MAXIMUM
         ADA               BENEFIT
         PROCEDURE         DENTAL PROCEDURE PAYABLE UNDER


<PAGE>   107


         CODE     DESCRIPTION       THE PLAN
                  Anesthesia
9210              Local Anesthesia-Non Operative                      15.84
9211              Regional Block Anesthesia                            9.24
9212              Trigeminal Division Block Anesthesia                15.84
9220              General Anesthesia                                  50.16
                  Professional Consultation
9310              Consultation Per Session                            20.06
                  Professional Visits
9410              House Call                                          20.06
9420              Hospital Call                                       20.06
9430              Office Visit During Office Hours                    20.06
9440              Office Visit After Office Hours                     20.06
                  Drugs
9610              Therapeutic Drug Injection                          10.56
9630              Other Medicaments                                   10.56
                  Miscellaneous Services
9910              Application of Desensitizing Medicament             12.67
9930              Unusual Complication                                14.78
9940              Occlusal Adjustment, Minor                          23.23
9950              Occlusion Analysis                                  79.20
                  Orthodontic Benefits

*Orthodontic services and materials are covered for their reasonable and
customary cost up to $550 per year per eligible Dependent prior to attaining age
21, with a lifetime maximum of $1650 for each such dependent.
Article XXB-UMWA CASH DEFERRED SAVINGS PLAN OF 1988
Section (a)  General Purpose
This Article provides for the maintenance of a pension plan and trust for
Employees covered by this Agreement, separate and apart from those maintained
pursuant to Article XX of this Agreement known as the United Mine Workers of
America Cash Deferred Savings Plan of 1988. This Savings Plan shall provide
additional retirement income to Employees and their dependents, and shall be
funded by voluntary wage deferrals and, as necessary, Employer contributions to
pay the cost of administration.
Section (b)  Trust
The Savings Plan shall be maintained through an irrevocable trust, created
pursuant to Section 302(c) of the Labor Management Relations Act of 1947, and
qualified under Section 501(a) of the Internal Revenue Code of 1986 ("IRC"), or
any successor statute.
Section (c)  Plan
The Savings Plan shall be maintained in accordance with the requirements of
Section 401(k) of the IRC, and is intended to be qualified under Section 401(a)
of the IRC.
Section (d)  Funding

<PAGE>   108


1. Each Employee covered by this Agreement shall be permitted to elect to have
the Employer pay any portion of his or her wages to the Trustees of the Savings
Plan, except that the percentage of wages so deferred may not exceed 10%, or any
smaller amount imposed as a maximum limitation under the IRC.
2. Each Employee shall have the opportunity to change the percentage of wages so
deferred four times per year, subject to reasonable rules and regulations
adopted by the Trustees.
3. All deferred amounts shall be paid to and held by the Trustees of the Savings
Plan, who shall maintain separate accounts for each such Employee.
Section (e)  Administration
The Savings Plan and Trust shall be jointly administered by a Board of four
Trustees, two of whom shall be appointed by the UMWA and two of whom shall be
appointed by the BCOA. The Trustees shall be responsible for all action
necessary for the proper and efficient operation of the Plan. In the absence of
any other specific direction in the Trust document, the Trustees shall, to the
extent practicable, contract for administrative and investment services with
independent entities in the business of and experienced in the administration
and/or investment of 401(k) plans.
1. The Trustees shall have the same powers, duties, and responsibilities with
respect to the Savings Plan and Trust as are set forth in Article XX of this
Agreement, and the powers, duties, and responsibilities set forth in the Savings
Trust documents, and this Article.
2. The Employers and the Union shall have the powers, duties, and
responsibilities with respect to the Savings Plan and Trust set forth in Article
XX, Sections (d)(2)-(8) and (10) and Sections (e)-(g), the Savings Trust
document, and this Article.
3. Administrative costs incurred after the Effective Date will be borne by the
Employers, subject to the Memorandum of Understanding entered into by the UMWA
and BCOA regarding administrative costs, a copy of which is incorporated by
reference and made a part of this Agreement. In order to implement this
provision, BCOA may set an hourly rate for contributions to be made to the
Savings Plan for any period during the term of this Agreement. These
contributions, which shall be made on hours worked and which may be adjusted
from time to time, shall be made by all Employers signatory hereto during the
term of this Agreement. For purposes of this provision, the term "administrative
costs" shall not include costs attributable to or in any way related to any
period prior to the Effective Date of this Agreement, and in particular, shall
not include any obligations incurred prior to the date or relating to costs
incurred prior to that date.
4. Payments required under this Article shall be made on the 10th day of the
month following the month for which the payment is owed. Payments shall be
delivered or mailed to the place designated by the Trustees of the Fund.
5. It shall be the duty of each of the Employers signatory hereto to keep
current said payments due to the Plan and to furnish to the International Union,
United Mine Workers of America, and to the Trustees of the Plan, a monthly
statement showing on a mine-by-mine basis, the full amounts due hereunder, the
hours worked with respect to which any amounts are payable, and any other
information, requested by the Trustees, relating to deferred wages to be paid to
the Plan.


<PAGE>   109


6. Failure of any Employer signatory hereto to make full and prompt payments to
the Plan in the manner and on the dates herein provided shall be deemed a
violation of the Agreement. This obligation of each Employer signatory hereto,
which is several and not joint, to so pay such sums shall be a direct and
continuing obligation of said Employer, and it shall be deemed a violation of
this Agreement if any mine, preparation plant or other facility to which this
Agreement is applicable shall be sold, leased, subleased, assigned or otherwise
disposed of for the purpose of avoiding any of the obligations hereunder.
7. Each Employer agrees to give proper notice to the President of the
appropriate local union by the 18th day of each month that the Employer has made
the required payment to the Plan for the previous month, as required by this
Article, or is delinquent in such payment, such notice to set forth the amount
paid to the Plan, or the amount of delinquency and, where pertinent, the hours
worked with respect to the mine or mines under the jurisdiction of such local
union.
Section (f)  Investments
Each participant shall have the opportunity to select an investment vehicle for
his or her individual account balance, or may apportion his or her account
balance among two or more such investment vehicles, subject to reasonable rules
and regulations adopted by the Trustees.
1. The investment vehicles among which Employees may choose shall contain a
broad range of investment alternatives. In addition to any investment vehicles
selected by the Trustees, the range of investments offered to Employees shall
include at least two vehicles selected by the Trustees from a list prepared by
the UMWA and two vehicles selected by the Trustees from a list prepared by the
BCOA. In lieu of presenting a list of investment vehicles, the UMWA and/or the
BCOA may specify criteria by which the Trustees shall select the two designated
investment vehicles.
2. Participants shall have the opportunity to elect alternative investment
vehicles no more than four times per year, in accordance with reasonable rules
and regulations adopted by the Trustees.
Section (g)  Plan and Trust Provisions
The Trust and Plan are incorporated by reference and considered a part hereto.
In the event that any provision of this Article or of any Plan or Trust created
pursuant hereto shall violate applicable law, then the parties hereto shall meet
to engage in good faith negotiations to agree upon a means of correcting such
illegality, so as to effect the intent hereof; except that the Trustees may
adopt any amendments necessary to conform the Plan or Trust to the requirements
of ERISA, or any other applicable federal law, and the regulations issued
thereunder.
Article XXI-SURFACE MINES
Section (a)  Parking Areas
At each surface mine covered by this Agreement, the Employer shall designate a
parking area, or parking areas, where each Employee will have the opportunity to
report to be transported to his jobsite if he so desires. The parking area shall
be connected to a public road by an access road provided and maintained as
required by Article XXII, section (b), of this Agreement (Miscellaneous). At the
parking area the Employer shall provide a parking lot conforming to the
standards established by Article XXII, section (c), of this


<PAGE>   110


Agreement (Miscellaneous). Such areas are not considered permanent and may be
changed and moved as warranted by operating considerations. The Employer shall
provide transportation by company vehicle for surface mine crews and maintenance
Employees from the parking area to the jobsite and back. The regular
transportation at the beginning and the end of shifts shall be operated by
Employees covered by this Agreement. Employees will be required to be at parking
areas at least 15 minutes before their regular starting times, and the Employer
will be required to pick up Employees within 15 minutes after their regular
quitting time, or overtime worked. For waiting time at the jobsite in excess of
15 minutes, the Employee will be paid at the overtime rate applicable. Bulletin
boards will be provided by the Employer at the parking area for the purpose of
posting job vacancies, Union information, and other pertinent notices.
Section (b)  Manning of Surface Mining Equipment
(1) Stripping and loading equipment at surface mines will be manned by
classified Employees as follows:
(i) Draglines and shovels up to 12 yards in size shall be manned by an operator
when the machine is in sight and hearing of other Employees, and at other times
shall be manned by an operator and another classified Employee. Where by prior
practice and custom an oiler or a groundman has been assigned to such machines,
that practice shall continue.
(ii) Draglines and shovels from 12 to 30 yards in size shall be manned by an
operator and an oiler. However, where by prior practice and custom a groundman
has been assigned to such machines, that practice shall continue.
(iii) Draglines and shovels 30 yards to 65 yards in size shall be manned by an
operator, an oiler and a groundman.
(iv) Draglines and shovels 65 yards and larger in size shall be manned by an
operator, an oiler and a groundman, and at least one additional Employee who
shall be an operator, oiler, groundman, or a mechanic, electrician or welder.
(2) Duties of Oiler
The oiler shall service the shovel or dragline to which he is assigned. Oilers
servicing machines under 12 yards in size shall not be required to be within the
swing of the boom. On other machines, the oiler will stay within the swing of
the boom of the machine to which he is assigned except when performing duties
customarily associated with his job at the machine. The regular classified oiler
shall, as part of his duties, learn to perform the duties of the machine
operator through an on-the-job break-in under the machine operator's guidance.
After such break-in period, the oiler shall operate the dragline or shovel to
periodically relieve the operator as directed by the Employer. When performing
the operator's duties, the oiler shall be paid the operator's rate.
(3) Duties of Groundman
The groundman's duties shall include the following: knocking down the roll;
steering the machine; leveling the machine; moving cable for the machine; and
performing such other duties as are customarily associated with his job at the
machine.
(4) Drill Helper
A drill helper shall be assigned to pneumatic drills drilling holes six inches
or larger in diameter. The drill helper shall be in the immediate area of the
drill to which he is assigned while the drill is in operation. When the drill is
not in operation, he may assist


<PAGE>   111


the shooter in the loading of holes. Where by prior practice and custom a
shooter helper has been assigned to assist the shooter, that practice shall
continue.
Section (c)  Eating Place
The Employer shall provide a centrally located eating place at each major pit
which may be either a permanent or portable structure and which the Employer
shall keep clean and adequately heated and ventilated to assure reasonably
comfortable conditions in all seasons. Where the Employee has access to the cab
of the machine or vehicle, such cab shall be considered acceptable and may be
used as an eating place.
Section (d)  Cabs
All cabs of vehicles and heavy machinery shall be adequately heated and
ventilated to assure reasonably comfortable working conditions in all seasons.
Section (e)  Special Health and Safety Problems in Surface Mines
(1) A new and inexperienced Employee with less than 45 working days experience
in surface mining shall not be required to work alone in any areas where he
cannot be seen or his cries for help heard. During his first 45 working days a
new inexperienced Employee shall be given adequate instruction by his Employer
on the work practices and mining conditions in the mine in which he is working.
(2) Repairs on electrical components or circuits supplying power to any device
or equipment located at a surface mine shall be done by qualified UMWA
electricians except to the extent that such work may be performed by others
under the provisions of Article IA (Scope and Coverage). When an Employee
believes that proper tests have not been made on electrical components or
circuits to ensure their safe operation, or that an electrical circuit is not in
compliance with applicable state or federal laws or regulations, the Employer
must comply with the Employee's request that the condition complained of be
examined by a qualified person as defined above. No Employee raising a question
regarding the safety of electrical circuits or components shall be subject to
discipline or discrimination.
(3) All excavation machinery 65 yards and larger in size shall be equipped with
intercom units or another no less effective communicative device.
(4) All trucks operating on or around the mine property shall be equipped with
at least two back-up mirrors, one located on each side of the truck, convenient
for the operator's use.
(5) All machinery equipped with internal combustion engines shall have the
exhaust system installed so as to minimize the Employee's exposure to fumes.
(6) When necessary to allay dust on haulage roadways and in the pit area, the
road shall be watered, or some other means used to allay the dust when needed.
In the winter months when freezing may occur, effective means shall be used to
alleviate slippery conditions on such roadways.
(7) All entrances to blasting areas shall be guarded to prevent unauthorized
access during blasting. Blasting activities shall be performed in accordance
with applicable federal and state laws and regulations which are incorporated
herein by reference.
(8) Whenever a haulage truck crosses a public road, safeguards will be taken to
assure safe crossing.


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(9) When an Employer transports coal from its tipple or other loading point by
its train to another of its loading or dumping points, a classified Employee
shall be assigned as a brakeman, switchman, or trip rider to assure safe
operation.
(10) All haulage roads on mine property shall be maintained in safe and
serviceable condition.
(11) The Employer shall provide an ample supply of potable drinking water to all
Employees at all times when they are working and shall be responsible for
assuring that water containers are kept clean.
Section (f)  Toilets
The Employer shall provide sanitary ventilated toilets for the use of Employees
at the jobsite and shall be responsible for keeping those facilities clean.
Section (g)  Swing Shift
A swing shift shall be used for stripping shovels, draglines, overburden drills
and all other classifications which regularly work seven days a week where
recognized by local agreement. When the operator uses a swing shift the regular
crews shall be assured of six days each week except weeks in which holidays
occur.
Section (h)  Leasing of Employees' Vehicles
The renting of Employees' trucks or vehicles is prohibited except where the
Employee voluntarily accepts a rental agreement for his vehicle. No Employee
shall be disciplined or discriminated against for refusing to accept such an
agreement.
Section (i)  Production and Processing of Coal at Surface Mines
Upon approval by two-thirds of the local union members employed at the mine, a
surface mine Employer may elect to extend the work day of Employees engaged in
the mining and loading of coal to shifts of eight (8) hours; provided that
Employees who work eight (8) hour shifts shall be regularly paid a minimum of
three-quarter (3/4) hours of overtime at applicable rates, and that work on the
seventh consecutive day shall remain optional. Additionally, the Employer and
the local union shall agree prior to the institution of such system upon methods
to insure that overtime is equally shared and that swing crews are utilized in
accordance with the provisions of section (g) of this Article. No Employee shall
be disciplined or discriminated against for exercising his right to refrain from
work on the seventh consecutive day.
Article XXII-MISCELLANEOUS
Section (a)  Bathhouse
The Employer shall provide bathhouse facilities for all classified Employees
complying with the standards established in regulations promulgated by the U.S.
Department of Labor under the Federal Mine Safety & Health Act of 1977. It shall
be the responsibility of the Employer to see that bathhouse facilities are
maintained in clean and sanitary condition. There shall be no charge by the
Employer for use of a bathhouse or washroom. The Employer will furnish soap in
the bathhouse or washroom. The bathhouse shall be heated sufficiently to dry the
Employee's working clothes. Where an Employer has successfully petitioned for
modification of the mandatory health and safety standards relating to bathhouses
and washrooms, and is not required to furnish a bathhouse or washroom, the
Employer must make other satisfactory arrangements with the UMWA District to
compensate the Employees affected.
Section (b)  Access Roads

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The Employer shall maintain mine access roads in reasonably good condition to
permit safe passage by Employees and their vehicles. An access road is a road
providing access from a public road to the location where Employees report to
work. This provision imposes no responsibility on the Employer for maintenance
of any public road. 
Section (c) Parking Facilities
The Employer shall provide and maintain an adequate parking facility for
Employees' vehicles. Where such facility is permanently located, it shall be
adequately lighted.
Section (d)  Bulletin Boards
The Employer agrees to provide bulletin boards or bulletin spaces for the
Union's use, and the Union agrees to post notices or information of interest to
the Union.
Section (e)  Coke and Cleaning Plants
Proper rules may be negotiated by the Employer with the District President
subject to approval of the International Union to provide for continuous
operation of coking and cleaning plants.
Section (f)  Compulsory Retirement
No Employer will have a policy of compulsory retirement based solely on age for
the Employees covered by this Agreement.
Section (g)  House Coal
House coal shall be sold to all Employees (including retired Employees or their
widows and the widows of Employees of the company) who live within a reasonable
distance of the mine, for their own household use, at the cost of production
exclusive of sales and administrative costs.
Section (h)  House Rent
Equitable adjustment of house rents shall be made by the Employer and the
District President subject to approval of the International Union.
Section (i)  Attendance Control
(1) At any facility where an attendance control program was in effect at the
expiration of the National Bituminous Coal Wage Agreement of 1978, that program
will remain in effect for the term of this Agreement unless within 30 calendar
days following the effective date of this Agreement either the Employer or the
Local Union gives notice to the other to terminate that attendance control
program. If termination notice is given, the Employer may, within 30 days of
that notice, elect to implement the Standard Attendance Control Program in
Section (i)(2) below or have no program.
At any facility where there was no attendance control program in effect at the
expiration of the National Bituminous Coal Wage Agreement of 1978, the Employer
may within 30 calendar days following the effective date of this Agreement,
elect to implement the Standard Attendance Control Program in Section (i)(2)
below or have no program. Within 30 days following the opening of a new facility
covered by this Agreement or within 30 days following the reopening of a
facility which was not operational on the effective date of this Agreement, the
Employer may also elect to implement the Standard Attendance Control Program in
Section (i)(2) below or have no program.
Whichever means of attendance control is elected shall remain in full force and
effect for the term of this Agreement.
(2) Standard Attendance Control Program

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Regular work attendance shall be required for all Employees and all absences
must be accounted for. Each mine, or other facility shall maintain a record of
individual absenteeism and administer this program to reduce absenteeism in
accordance with local policy, contractual obligation and sound judgment. An
Employee who makes a habit of laying off for single days other than for good
cause or proven sickness and continues to do so after having been warned by
Management with notice to the Mine Committee may be suspended with the intent to
discharge. 
If an Employee accumulates six (6) single days of unexcused absence     in a
180-day period or three (3) single days of unexcused absence in a 30-day
period, he shall be designated an "irregular worker" and will be subject to the
following progressive steps of discipline. 
Step 1  
        If the irregular worker is absent (unexcused) for one (1) additional 
day within 180 days of the unexcused absence which caused him to be designated
an irregular worker, he may be called in for a personal interview with Mine 
Management and may be given a written warning notice. A copy of the notice 
shall be retained at the mine and a copy sent to the Mine Committee. 
Step 2 
        If the irregular worker is then absent (unexcused) for one (1) 
additional day within 180 days of the warning notice, he may be suspended for 
two (2) working days. Written notice of this suspension will be given to the 
Employee with a copy to the Mine Committee, which notice shall indicate that 
this is the second and final warning.  
Step 3  
        If the irregular worker is then absent (unexcused) for one (1) 
additional day within  180 days of the last day of the two (2) day suspension,
he may be suspended with intent to discharge. 
An Employee who works a full 180-day period following the issuance of any       
discipline under program without one (1) day of unexcused absence will no longer
be determined an irregular worker and his record will be cleared of all prior
discipline under this program.  
(3) Nothing in this Section shall preclude the Employer from establishing or
enforcing work  rules regarding tardiness and leaving the shift early.  
(4) Absences of Two Consecutive Days When any Employee absents himself  from his
work for a period of two (2) consecutive days without the consent of the        
Employer, other than because of proven sickness, he may be discharged. This
provision shall apply to all locations regardless of whatever attendance control
program (if any) is elected or retained at any location.  
(5) Consistent application of this policy to all Employees is the key to the   
successful administration of this program to reduce absenteeism. The objective
of the program is to encourage regular attendance and provide a fair and
systematic method of handling chronic offenders.  Section (j)  Memorial Periods
The International Union, United Mine Workers of America, may designate memorial 
periods not exceeding a total of ten (10) days during the term of this Agreement
at any mine or operation provided it shall give reasonable notice to the
Employer.  
Section (k)  Closing Following Fatal Accident

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In addition to the memorial period provisions to be designated under section (j)
work shall cease at any mine on any shift during which a fatal accident occurs,
and the mine shall remain closed on all succeeding shifts until the starting
time of the next regularly scheduled work of the shift on which the fatality
occurred.
Section (l)  New Machinery
The right to install and operate new types of equipment is recognized. When such
equipment is to be installed which is not already in use in the industry, the
Employer shall give thirty (30) days advance notice to the president of the UMWA
District in which the new type of equipment is to be located. During this period
the two parties shall make every effort to agree upon the job grade in Appendix
A which shall apply, as well as the manning requirements on the equipment. If no
agreement is reached, the equipment may be put into experimental operation
utilizing temporary assignments under the direction of members of management and
the manufacturer's representatives.
Thereafter, if no agreement is reached within 30 days (except downtime) from the
time the equipment is placed into experimental operation, such equipment may
continue in service with classifications and manning requirements established by
the Employer. The Employer shall consider recommendations of the District
President with respect to manning requirements, and if the Employer accepts and
puts those recommendations into effect, the matter of manning shall be
considered settled. If the Employer fails to adopt the recommendations of the
District President, the equipment may continue in service with manning
requirements established by the Employer. Employees shall have the right to file
and process grievances as to manning and classifications under Article XXIII.
Should the Employees prevail in such grievance proceedings, the arbitrator shall
grant retroactive relief with respect to classifications.
Section (m)  Pay Day
All Employees will be paid at least every two (2) weeks. Payment shall be made
by cash or check with recognition for legitimate deductions. The discounting of
earnings through the use of scrip or tokens is prohibited. The Employee shall
receive, with his pay, a plain statement itemizing the number of hours worked
during the pay period and, if practicable, setting forth the straight time,
overtime and premium time hours worked during the pay period. The statement
shall also itemize all payroll deductions.
Section (n)  Lunches
Any classified Employee working two or more hours in addition to his own regular
shift or who is called back to work after leaving the Employer's premises shall
be provided a lunch at the Employer's expense.
Section (o)  Portals
Except as otherwise provided in Article XXI, section (a), (Surface Mine Parking
Areas), the Employer shall have the right to designate the portal or portals and
may move or establish new portals if adequate facilities, conveniences and
safety are furnished the Employees at such new portals when such new portals are
placed in use, subject to the right of review on the part of the Union.
Section (p)  Tools
The Employer shall furnish all necessary mine workers' tools.
Section (q)  Tramming

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The machine operator's rate or the helper's rate (where applicable) will be paid
for the tramming of mobile loading, cutting, continuous mining or related
machines and equipment from one location to another.
Section (r)  Local Union Meeting Place
At each of the mines covered by this Agreement, the Employer agrees to permit
the local union to use the bathhouse as a meeting place, provided, however, that
such use does not interfere with production or the intended use of these
facilities.
Section (s)  Bonus Plans
(1) Procedures
Before any bonus plan can be installed, it shall be submitted to a vote by the
Employees to be covered by the plan. Provided a majority of those voting
approve, the Employer may establish, revise, or terminate the plan only in
accordance with the following procedures:
(A) The Employer shall notify the Mine Communication Committee of his intention
to install a bonus plan at least sixty days prior to its planned commencement
date.
(B) During such sixty-day period the Employer shall thoroughly discuss and
explain the proposed plan to the Mine Communication Committee and shall serve a
copy of the plan on the International Union. The Mine Communication Committee
may at any time after thirty days, but within 100 days following installation,
initiate a grievance alleging that a new bonus plan does not meet the
requirements of this Section.
(C) At least forty-five days prior to its commencement the Employer shall
distribute a description of the plan to all active classified Employees at the
mine and with the assistance of the Mine Communication Committee answer all
questions that may arise.
(D) The Employer may make minor revisions in the operation of the plan after
explanation of such revisions to the Mine Communication Committee and after
giving seven-days notice of such change prior to the beginning of a pay period
to all active classified Employees in the mine.
(E) A major revision of the plan shall be considered a new plan and may be
effected in the same manner as a new plan.
(F) The Employer may not terminate a plan without first giving notice to the
members of the bargaining unit at the mine thirty days prior to the date of
termination.
(2) Conditions
Bonus plans shall not be commenced or continued unless a plan satisfies all of
the following conditions:
(A) The plan does not lessen safety standards as established by applicable law
and regulations,
(B) The plan shall provide an earnings opportunity above the standard daily wage
rate for all active classified Employees at the mine,
(C) The plan shall require that quarterly reports be made to the Union of all
compensation paid under its terms,
(D) Compensation provided under the plan shall only be monetary.
(3) Resolution of Disputes
Any dispute concerning the application of a bonus plan shall be subject to
resolution solely in the grievance and arbitration procedure contained in
Article XXIII of this


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Agreement. Where an arbitrator finds that a bonus plan has lessened safety
standards as prescribed in (2)(A) above, the plan shall be suspended until such
standards are met.
Article XXIII--SETTLEMENT OF DISPUTES
Section (a)  Mine Committee
A committee consisting of at least three (3) but not more than five (5)
Employees shall be elected at each mine by the Employees at such mine. There
shall be at least one (1) member of the Mine Committee on each shift insofar as
is practicable. Each member of the Mine Committee shall be an Employee of the
mine at which he is a committee member, and shall be eligible to serve as a
committee member only so long as he continues to be an Employee of said mine who
is not on layoff. Where circumstances warrant at an underground mine,
consideration shall be given to including an outside Employee on the committee.
The duties of the Mine Committee shall be confined to the adjustment of disputes
arising out of this Agreement that the mine management and the Employee or
Employees fail to adjust. The Mine Committee shall have the authority on behalf
of the grievant to settle or withdraw any grievance at step 2 or proceed to step
3. The Mine Committee shall have no other authority or exercise any other
control nor in any way interfere with the operation of the mine; for violation
of this section any and all members of the committee may be removed from the
committee.
A mine committee member shall not be suspended or discharged for his official
actions as a mine committee member. An Employer seeking to remove a mine
committee member shall so notify the affected mine committee member and the
other members of the Mine Committee. If the Mine Committee objects to such
removal, the matter shall be submitted directly to arbitration within 15
calendar days from such objection. If the other members of the Mine Committee so
determine, the affected member shall remain on the Mine Committee until the case
is submitted to and decided by an arbitrator. If the Employer requests removal
of the entire Mine Committee, the matter automatically shall be submitted to
arbitration within 15 calendar days after such request, and the Mine Committee
will continue to serve until the case is submitted to and decided by an
arbitrator. When a committeeman or the entire committee is removed, such removal
shall remain in effect for the duration of this Agreement.
Section (b)  District Arbitrators
(1) The president of the UMWA International Union and the president of the BCOA
shall jointly establish a panel of impartial arbitrators for each UMWA district.
These panels may be changed, augmented or supplemented by mutual consent of the
appointing parties. A district arbitrator selected to serve on a panel shall
serve for a term of 18 months unless removed by the mutual consent of the
appointing parties. At the expiration of each such term, the appointing parties
shall jointly establish a new panel of impartial arbitrators for each UMWA
district.
(2) As an alternative, an Employer and the UMWA district may choose to select a
district arbitrator or panel of district arbitrators. In such event,
representatives of the Employer and the UMWA district in which that Employer
operates shall, within ninety days following the effective date of this
Agreement, select an impartial arbitrator or panel of impartial arbitrators to
be used in matters referred to arbitration under the provisions of this
Agreement. This panel may be changed or supplemented by mutual consent of the
appointing parties. The arbitrator or arbitrators so selected shall serve for
such term as


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agreed upon by the appointing parties. If the Employer and the UMWA district do
not make a selection of an arbitrator or panel of arbitrators within the
prescribed time, the selection procedure under section (b) (1) shall apply. If
an Employer and the UMWA district so select an arbitrator or panel of
arbitrators, they then may elect to (1) abide by the procedural requirements
provided for in paragraph (c)(4) of this Article or (2) mutually agree upon all 
procedural requirements required for the handling of disputes at step 4 of the
grievance procedure, provided such step continues to provide for final and
binding arbitration of the dispute. Where an Employer and the UMWA district
elect to handle disputes at step 4 by means of a transcript at the step 3
meeting, then a transcript shall be made at the step 3 meeting despite any
provision in this Agreement to the contrary. Said agreement shall be set forth
in writing and shall not be changed for the duration of this Agreement.
Further, if the Employer and the UMWA district mutually agree on procedural
requirements different from those set forth in paragraph (c)(4) of this
Article, such agreement must be finalized within ninety days following the
Effective Date of this Agreement. If no separate agreement is reached on
procedural requirements, then the procedure set forth in paragraph
(c)(4) of this Article shall remain in effect.
(3) Panel arbitrators appointed under the prior Agreement shall serve as
district arbitrators until arbitrators can be selected under the above
procedure.
(4) District arbitrators shall render decisions in an expeditious manner;
failure to do so may be grounds for removal by mutual consent of the appointing
parties.
Section (c)  Grievance Procedure
Should differences arise between the Mine Workers and an Employer as to the
meaning and application of the provisions of this Agreement, or should
differences arise about matters not specifically mentioned in this Agreement, or
should any local trouble of any kind arise at the mine, an earnest effort shall
be made to settle such differences at the earliest practicable time.
Disputes arising under this Agreement shall be resolved as follows:
(1) The Employee will make his complaint to his immediate foreman who shall have
the authority to settle the matter. The foreman will notify the Employee of his
decision within 24 hours following the day when the complaint is made.
Settlements or withdrawals at this step shall not constitute a precedent in the
handling of other grievances.
(2) If no agreement is reached between the Employee and his foreman, the
complaint shall be submitted on the BCOA-UMWA Standard Grievance Form and shall
be taken up within five working days of the foreman's decision by the Mine
Committee and mine management. Where the committee consists of more than three
(3) members, the Employer shall have the right to meet with a maximum of three
(3) (to be chosen by the Mine Committee). Within five working days after the
complaint is taken up by them, the committee and management will complete the
standard grievance form and, if the complaint is not settled, the grievance
shall be referred to a representative of the UMWA district, designated by the
Union, and a representative of the Employer.
(3) Within seven working days of the time the grievance is referred to them, the
district representative and the representative of the Employer shall meet and
review the facts and pertinent contract provisions in an effort to reach
agreement. Members of the Mine Committee shall have the right to be present. No
verbatim transcript of the testimony


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shall be taken. Neither the district representative nor the Employer
representative shall be persons who participated in steps 1 or 2 of this
procedure. (4) In cases where the district representative and the
representative of the Employer fail to reach agreement, the matter shall,
within 10 calendar days after referral to them, be referred to the appropriate
district arbitrator who shall decide the case without delay. Cases shall be
assigned to district arbitrators in rotation. The parties agree that the
expeditious processing of grievances is a major function of this Article, and
that consolidation of cases before a single arbitrator can aid in achieving
that goal, and where applicable, this procedure should be given serious
consideration. Therefore, in order to expedite the processing of grievances
awaiting arbitration, the parties may agree that grievances pending arbitration
concerning the same operation of the Employer for which an arbitrator has not
been assigned, shall be assigned to a single arbitrator if such cases can be
heard on the same day, at the same place. Hearings shall take place at a
location mutually agreed upon by the parties. If the parties are unable to
agree upon a hearing place, the umpire shall select the place. At the earliest
possible time, but no later than 15 days after referral to him, the arbitrator
shall conduct a hearing in order to hear testimony, receive evidence and
consider arguments.
In cases in which the parties have agreed that there is no question of fact
involved in the grievance, the arbitrator may decide the case upon the basis of
a joint statement of the parties and such exhibits as they shall submit. The
hearing shall be recorded by the arbitrator and shall be closed upon the
completion of testimony. The arbitrator shall render his decision as    soon
after the close of the hearing as may be feasible. To avoid delays in the
issuance of decisions, post hearing briefs will not be permitted except in
cases where the arbitrator determines that such briefs are necessary for a full
understanding of the matter before him. If the arbitrator is unable to make his
decision within 30 days of the close of the hearing, he shall promptly advise
the parties of the reasons for the delay and the date when his decision will be
submitted. The arbitrator's decision shall be final and shall govern only the
dispute before him. Expenses and fees incident to the service of an arbitrator
shall be paid equally by the Employer affected and by the UMWA district
affected.
Section (d)  Ten Day Limitation
Any grievance which is not filed by the aggrieved party within ten (10) working
days of the time when the Employee reasonably should have known it, shall be
denied as untimely and not processed further.
Section (e)  Earnest Effort to Resolve Disputes
An earnest effort shall be made to settle differences at the earliest
practicable time. Where an Employee makes a complaint during work time, the
foreman shall, if requested to do so, and if possible, consistent with
continuous production, discuss the matter briefly on the spot. 
At all steps of the complaint and grievance procedure, the grievant and the
Union representatives shall disclose to the company representatives a full
statement       of the facts and the provisions of the Agreement relied upon by
them. In the same manner, the company representatives shall disclose all the
facts relied upon by the company.
Section (f)  Employee's Right to Presence of Member of Mine Committee


<PAGE>   120


Except where it will interfere with production, an Employee shall be entitled,
at his request, to have a member of the Mine Committee present to assist him at
any discussion with his foreman held pursuant to section (c)(2) of this Article.
If a member of the Mine Committee is present during such discussion, the foreman
involved may have another representative of the Employer in attendance.
Section (g)  Right of Grievant to be Present
The grievant shall have the right to be present at each step of the grievance
procedure until such time as all evidence is taken.
Section (h)  Finality of Decision or Settlement
Settlements reached at any step of the grievance procedure shall be final and
binding on both parties and shall not be subject to further proceedings under
this Article except by mutual agreement. Settlements reached at steps 2 and 3
shall be in writing and signed by appropriate representatives of the Union and
the Employer.
Section (i)  Exclusion of Legal Counsel
Neither party will be represented by an attorney licensed to practice law in any
jurisdiction in steps 1 through 4 of the grievance procedure except by mutual
agreement applicable only to a particular case.
Section (j)  Waiver of Time Limits
By agreement the parties may waive the time limits set forth in each step of the
grievance procedure.
Section (k)  Prior Agreement
Any dispute and/or difference which as of the Effective Date of this Agreement
is in the process of adjustment under the Settlement of Disputes section of the
prior Agreement or any dispute and/or difference presented on or after the
Effective Date of this Agreement which is based on the occurrence or
nonoccurrence of an event which arose prior to the Effective Date of this
Agreement shall be processed under the procedural provisions of this Agreement
and shall be resolved under the applicable provisions of the prior Agreement.
Decisions reached under this provision shall be final and binding. All decisions
of the Arbitration Review Board rendered prior to the expiration of the National
Bituminous Coal Wage Agreement of 1978 shall continue to have precedential
effect under this Agreement to the extent that the basis for such decisions have
not been modified by subsequent changes in this Agreement.
Article XXIV-DISCHARGE PROCEDURE
Section (a)  Just Cause Required
No Employee covered by this Agreement may be disciplined or discharged except
for just cause. The burden shall be on the Employer to establish grounds for
discharge in all proceedings under this Agreement.
Section (b)  Procedure
Where management concludes that the conduct of an Employee justifies discharge,
the Employee shall be suspended with intent to discharge and shall be given
written notice stating the reason, with a copy to be furnished to the Mine
Committee. After 24 hours, but within 48 hours, the Employee shall be afforded
the right to meet with the mine superintendent or manager. At such meeting, a
member or members of the Mine Committee shall be present and, if requested by
the Employee or the Mine Committee, a representative of the District shall also
be present. When the district representative


<PAGE>   121


requests, the forty-eight hour time limit will be extended by an additional 48
hours. The Employer shall be entitled to have an equal number of representatives
at the meeting.
Section (c)  Suspension
If the Employer informs the Employee at the meeting between the Employee and the
mine superintendent or manager that he still intends to discharge the Employee
(or if no meeting was requested), the Employee remains suspended with intent to
discharge for a period of time necessary to permit him to file a grievance and
have it arbitrated. If the Employee does not file a grievance within five days
of the notice of suspension with intent to discharge, the discharge shall become
effective immediately.
Section (d)  Immediate Arbitration
(1) If the District believes that just cause for discharge does not exist, it
shall arrange with the Employer for immediate arbitration of the dispute,
bypassing steps one through three of the grievance procedure.
(2) The next available district arbitrator shall immediately be assigned to hear
the case.
(3) The appropriate district arbitrator shall hear the case within five days. At
the conclusion of the hearing, the district arbitrator shall at that time
announce his decision which shall be binding on all parties. Following the
hearing, the arbitrator shall forthwith reduce his decision to writing within 10
days. If the arbitrator determines that the Employer has failed to establish
just cause for the Employee's discharge, the Employee shall be immediately
reinstated to his job. If the arbitrator determines that there was just cause
for the discharge, the discharge shall become effective upon the date of the
arbitrator's decision.
Section (e)  Regular Arbitration
If neither the Employee nor the Mine Committee request immediate arbitration,
the Employee shall be discharged at the conclusion of the fifth day of his
suspension, and his case shall be processed in accordance with the provisions of
Article XXIII (Settlement of Disputes).
Section (f)  Compensation for Lost Earnings
In all cases where it is determined that just cause for discharge has not been
established, the Employee shall be reinstated and compensated for lost earnings
at his applicable straight and premium time rates prior to discharge. Provided,
however, that such case shall be taken up within five (5) days from the date of
discharge.
Article XXV-DISCRIMINATION PROHIBITED
Neither the Employer nor the Union shall discriminate against any Employee or
with regard to the terms or availability of classified employment on the basis
of race, creed, national origin, sex, age, political activity, whether
intra-Union or otherwise. In addition, the Employer and Union agree that they
will adhere to applicable provisions of the Vietnam Era Readjustment Assistance
Act of 1974, the Rehabilitation Act of 1973, and the Americans With Disabilities
Act.
Article XXVI-DISTRICT AGREEMENTS
Section (a)  New Districts
New Districts of the United Mine Workers of America may be established.
Section (b)  Prior Practice and Custom
This Agreement supersedes all existing and previous contracts except as
incorporated and carried forward herein by reference; and all local agreements,
rules, regulations and


<PAGE>   122


customs heretofore established in conflict with this Agreement are hereby
abolished. Except where abolished by mutual agreement of the parties, including
the provisions of Article II G.10 of this Agreement, all prior practice and
custom not in conflict with this Agreement shall be continued, but any
provisions in any District or local agreements providing for the levying,
assessing or collection of fines or providing for "no-strike," "indemnity," or
"guarantee" clauses or provisions are hereby expressly repealed and shall not be
applicable during the term of this Agreement. Whenever a conflict arises between
this Agreement and any District or local agreement, this Agreement shall
prevail.
Within six (6) months following the Effective Date of this Agreement, the
Employers and all the UMWA District presidents shall provide to the
International Union and to BCOA, copies of all District agreements in their
possession. All District agreements which are not provided to the International
Union and BCOA during the first six (6) months of this Agreement may not be
relied upon by any Employer or the Union in any grievance proceeding which may
occur during the balance of this Agreement.
Section (c)  Protective Wage Clause
Any and all provisions of any contracts or agreements between the parties hereto
or some of them whether national, district, local or otherwise providing for a
protective wage clause and a modification of this Agreement or said agreements
if a more favorable wage agreement is entered into by the United Mine Workers of
America, are hereby rescinded, cancelled, abrogated and made null and void.
Section (d) Approval of District Agreements
No District contract or agreement negotiated hereunder shall become effective
until approval of such contract or agreement by the International Union, United
Mine Workers of America, has been first obtained.
Article XXVII-MAINTAIN INTEGRITY OF CONTRACT AND RESORT TO COURTS
The United Mine Workers of America and the Employers agree and affirm that,
except as provided herein, they will maintain the integrity of this contract and
that all disputes and claims which are not settled by agreement shall be settled
by the machinery provided in the "Settlement of Disputes" Article of this
Agreement unless national in character in which event the parties shall settle
such disputes by free collective bargaining as heretofore practiced in the
industry, it being the purpose of this provision to provide for the settlement
of all such disputes and claims through the machinery in this contract and by
collective bargaining without recourse to the courts.
The Employer, however, expressly authorizes the Union to seek judicial relief,
without exhausting the grievance machinery, in cases involving successorship.
Article XXVIII-SEVERABILITY CLAUSE
Section (a)  General Rule
Except for the provisions of section (b) of this Article, if any provision of
this Agreement is declared invalid, all other provisions of this Agreement shall
remain in full force and effect.
Section (b)  Exception
In the event the parties are restrained or prohibited by any agency or branch of
the federal or state government from implementing or effectuating the economic
benefits, including


<PAGE>   123


health and retirement fund payments, required by this Agreement, either party
hereto may, after the imposition of such restraint, give sixty days notice of
termination of this Agreement and, thereafter shall meet and discuss and attempt
to agree on the basis for a continuation of the Agreement for its term. If no
agreement is reached within the 60-day period, the Agreement will terminate.
Article XXIX-RATIFICATION AND
TERMINATION OF THIS AGREEMENT
This Agreement shall become effective at 12:01 a.m. on January 1, 1998 (the
Effective Date), provided that this Agreement has been ratified and approved by
the membership covered hereby.
Except as provided in Article XXVIII, Section (b) (Severability Clause), this
Agreement shall not be subject to termination by either party signatory hereto
prior to 11:59 p.m., December 31, 2002, provided, however, that either the
parties of the first part or the party of the second part may terminate this
Agreement on or after 11:59 p.m., December 31, 2002, by giving at least sixty
days written notice to the other party of such desired termination date.
In the event of an economic strike at the expiration of this Agreement,
Employers will advance the premiums for the Employees' health and life insurance
coverage for the first 30 days of such strike. Such advanced premiums shall be
repaid to the Employers by the Employees through check-off deduction upon their
return to work. Should such a strike continue beyond 30 days, the Union or the
Employees may elect to continue coverage by paying the premiums themselves. This
paragraph shall survive the termination of the remainder of this Agreement and
shall continue in effect until the purpose for which it was established is
satisfied.
IN WITNESS WHEREOF, each of the parties signatory hereto has caused this
Agreement to be signed this 1st day of January, 1998, to become effective only
upon the condition that it is ratified and approved by the membership covered
hereby.
UNITED MINE WORKERS OF AMERICA
         CECIL E. ROBERTS
         International President
         JERRY D. JONES
         International Vice President
         CARLO TARLEY
         International Secretary-Treasurer
BITUMINOUS COAL OPERATORS' ASSOCIATION, INC.
         JOSEPH P. BRENNAN
         President


         DATE
         January 1, 1998



<PAGE>   124




MEDIATION
Bituminous Coal Operators' Association, Inc.
918 Sixteenth Street, N.W.o Suite 303
Washington, D.C. 20006-2971
January 1, 1998
Mr. Cecil E. Roberts
President
United Mine Workers of America
900 Fifteenth Street, N.W.
Washington, D.C. 20005
Dear Mr. Roberts:
This letter will confirm BCOA's understanding with you concerning the National
Bituminous Coal Wage Agreement of 1998 as it relates to settlement of disputes.
The terms of the Agreement do not prohibit an Employer from entering into an
arrangement with the Union which provides that disputes between the Employer and
its UMWA represented Employees may be submitted to a mediation procedure.
BCOA does not agree, however, that the mediation procedure replaces the
contractual resolution of dispute procedures, i.e., Article XXIII, Article XXIV,
and Article XX, Section (e)(5). It is BCOA's understanding that the mediation
procedure is a supplement to the contractual procedures.
Sincerely,
B.R. Brown
Chairman
BCOA Negotiating Committee


Bituminous Coal Operators' Association, Inc.
918 Sixteenth Street, N.W.o Suite 303
Washington, D.C. 20006-2971
January 1, 1998
Mr. Cecil E. Roberts, President
United Mine Workers of America
900 Fifteenth Street, N.W.
Washington, D.C. 20005
Re:  Special Permanent Layoff Pension
Dear Mr. Roberts:
This is to confirm our understanding regarding the effect of an election to
receive the Special Permanent Layoff Pension from the UMWA 1974 Pension Plan as
provided under the 1998 National Bituminous Coal Wage Agreement ("NBCWA"). The
language included by the parties in Section (10)(c) of the General Description
of the Health and Retirement Benefits in Article XX of the NBCWA is intended to
assure that a miner who elects to receive a Special Permanent Layoff Pension
does not forfeit or otherwise lose his right to receive the continued health
coverage and life insurance benefits to which he would have been entitled under
the NBCWA or his Employer's benefit plan as the result of the layoff had he not
elected to receive his pension.


<PAGE>   125


Sincerely,
B.R. Brown, Chairman
BCOA Negotiating Committee
Agreed to: 
           ------------------          
            Cecil E. Roberts



MEMORANDUM OF UNDERSTANDING
REGARDING JOB OPPORTUNITIES
This Memorandum of Understanding ("MOU") is between the United Mine Workers of
America (hereinafter referred to as "UMWA") and [name of signatory Employer]
(hereinafter referred to as "the signatory Employer"), which is a member of the
Bituminous Coal Operators' Association, Inc., signatory to the National
Bituminous Coal Wage Agreement of 1998, and, solely for purposes of negotiating
and executing this MOU and no other purposes, the limited agent of [name of
nonsignatory Parent] and its nonsignatory coal mining subsidiaries (hereinafter
referred to as "the nonsignatory Companies"). A list of all nonsignatory
Companies covered by this MOU that have existing nonsignatory bituminous coal
mining operations and the names of those operations are attached as Appendix A.
1. The parties enter into this MOU in order to provide job opportunities for
work of a classified nature to certain laid-off and active miners of the
signatory Employer and to provide the nonsignatory Companies with an experienced
pool of miners to fill available new job openings for work of a classified
nature. Such job opportunities for work of a classified nature shall be at
existing, new, or newly acquired nonsignatory bituminous coal mining operations
of the nonsignatory Companies. Any nonsignatory bituminous coal mining operation
opened, reopened, or newly acquired after the date of execution of this MOU by
the nonsignatory Companies shall be deemed a new or newly acquired bituminous
coal mining operation for purposes of this MOU, provided that the nonsignatory
Company owns 50 percent or more of the applicable bituminous coal mining
operation or operates the applicable bituminous coal mining operation with
exclusive right to control of the hiring of miners for work of a classified
nature.
2. The nonsignatory Companies agree that they will not engage in any
transaction, restructuring or reorganization for the purpose of evading the
obligations of this MOU.
3. This MOU shall be subject to any valid legal obligation, including but not
limited to any collective bargaining agreement, Native American preference
right, applicable statute or regulation, affecting the hiring obligations of the
nonsignatory Companies or the lessees, licensees, contractors or subcontractors
of the nonsignatory Companies as set forth in paragraph 10 below.
4. Nothing in this MOU, its execution, the discussions leading to its execution,
or the negotiations for the NBCWA of 1998, shall affect, or be used as evidence
in any forum to affect, any bargaining unit determination or any duty of the
nonsignatory Companies to recognize or bargain with the UMWA. The parties agree
that the nonsignatory bituminous coal mining operations referred to in this MOU
are separate from and not included in any bargaining unit heretofore or
currently existing in the coal industry.


<PAGE>   126


5. Nothing in this MOU, its implementation, its execution, the discussions
leading to its execution, or the negotiations for the NBCWA of 1998, shall
create, or be used or offered as evidence in any forum to create, a joint
employer, single employer, alter ego, agency, successor, or other type of
relationship between or among the signatory Employer and the nonsignatory
Companies.
6. At existing, new, or newly acquired nonsignatory bituminous coal mining
operations of the nonsignatory Companies, job openings for work of a classified
nature shall be filled by mine management as follows. The first three (3) out of
every five (5) new job openings for work of a classified nature shall be offered
to laid-off miners on the panels of the signatory Employer, or to active
Employees of the signatory Employer who have provided notice indicating their
interest in such openings. The first two of these new job openings shall be
filled from among the senior laid-off and active miners of the signatory
Employer who have the ability to step into and perform the work of the job at
the time the job is awarded. Every third such new job opening shall be filled by
mine management with the senior laid-off or active miner of the signatory
Employer who has the ability to step into and perform the work of the job at the
time the job is awarded and who must have actually performed the tasks required
for the job within the last three years. The last two (2) out of every five (5)
new job openings for work of a classified nature shall be filled by mine
management at its sole discretion from any source, without regard to prior
employment or layoff status, although mine management may also consider laid-off
or active miners of the signatory Employer for these openings.
Selection of laid-off and active miners for the first three (3) out of every
five (5) new job openings described above shall be made (a) from laid-off panel
members of the signatory Employer, and (b) from active miners who have notified
the signatory Employer, as a limited agent, of their interest in and
qualifications for any such job openings at the specific operation involved.
Offers of employment made to laid-off panel members of the signatory Employer
shall be made without regard to the listing of the particular job or operation
on the miner's panel form. It shall be the obligation of the signatory Employer
to provide notice to its active miners of new job openings of a classified
nature as they become available at the nonsignatory operation. The parties have
attached to this MOU in Appendix B the contents of the form by which active
miners may provide notice indicating their interest and qualifications for any
such job openings at nonsignatory Company bituminous coal mining operations.
This notice shall be posted by the signatory Employer at the time job openings
of a classified nature become available at the nonsignatory operations covered
by this MOU. For laid-off miners, the order of selection shall be: selecting
first from laid-off miners who were last employed at a coal mining operation
within the geographic district where the nonsignatory operation is located, next
from geographically contiguous districts, and then from geographically
non-contiguous districts. For active miners, the order of selection shall be:
selecting first from active miners who are employed at a coal mining operation
within the geographic district where the nonsignatory operation is located, next
from geographically contiguous districts, and then from geographically
non-contiguous districts.
7. An offer of employment shall be made to a laid-off or an active miner
pursuant to this MOU by certified mail, return receipt requested. A miner has
three (3) days to accept or reject the offer. If no response is received by mine
management within three (3) days of


<PAGE>   127


receipt of the offer, the offer shall be deemed to be rejected. If a laid-off or
an active miner rejects or is deemed to have rejected a job offer made pursuant
to this MOU, mine management has no obligation to make any additional job offers
to that miner at that specific nonsignatory bituminous coal mining operation
pursuant to this MOU.
8. Nothing in this MOU, its implementation, its execution, the discussions
leading to its execution, or the negotiations for the NBCWA of 1998, shall
require, or be used as evidence in any forum to require, the nonsignatory
Companies to execute or be bound in any manner by any collective bargaining
agreement with the UMWA.
9. This MOU provides job opportunities for work of a classified nature only at
existing, new, or newly acquired nonsignatory bituminous coal mining operations
of the nonsignatory Companies, as defined in this MOU. This MOU does not
constitute a covenant running with the land and does not apply to the sale of
nonsignatory coal lands, coal reserves or coal operations (either asset sales or
stock sales) of the nonsignatory Companies. Nothing herein shall encumber or
limit in any way the rights of the nonsignatory Companies to sell, exchange,
release, or otherwise similarly convey (either through asset or stock sales) any
of their nonsignatory coal lands, coal reserves or coal operations to third
parties.
10. The three-of-five selection procedure contained in this MOU shall apply to
leases, licenses, contracts and subcontracts of the nonsignatory Companies
entered into after the date of execution of this MOU where the coal produced
from the leased, licensed, contracted or subcontracted bituminous lands or
bituminous coal mining operations is produced or processed for, and sold by the
nonsignatory Companies. In the event any existing lessee, licensee, contractor
or subcontractor performs work on a continuous basis for the nonsignatory
Company, this MOU shall not require the lessee, licensee, contractor or
subcontractor to displace employees currently working when the lessee, licensee,
contractor or subcontractor enters into a new lease, license, contract or
subcontract with the nonsignatory Company. In the event bituminous coal lands or
bituminous coal mining operations subject to this MOU are leased, subleased,
licensed, contracted out, or subcontracted to any non-related entity and the
coal that is produced from those lands or operations is not produced or
processed for, and sold by the nonsignatory Companies, then the terms of this
MOU shall not apply to that entity. Notwithstanding any of the provisions in
this MOU, if the nonsignatory Companies retain only a royalty in the coal, the
terms of the MOU shall not apply. The parties further agree that this MOU shall
not apply to any existing lease, license, contract or subcontract of the
nonsignatory Companies entered into prior to the date of this MOU (including
then existing leases, licenses, contracts or subcontracts of an entity
subsequently acquired by the nonsignatory Companies).
11. The provisions in this MOU for providing job opportunities shall remain in
effect until 11:59 p.m., December 31, 2002. The parties' agreement not to use
this MOU for other purposes, such as specified in paragraphs 4, 5 and 8, shall
continue to apply after the expiration of the MOU.
12. The nonsignatory Companies agree that they will neither initiate nor
financially support any legal challenge to the validity of the MOU.
The parties retain the right to challenge any decision of the monitor under
Paragraph 14 that does not comport with the provisions of this MOU.


<PAGE>   128
13. This MOU is not intended to discriminate against any person on the basis of
union membership or the lack thereof. All job offers made pursuant to this MOU
shall be made on a nondiscriminatory basis.
14. In order to effectuate the implementation of these job opportunity
provisions, the UMWA and the nonsignatory Companies subject to this MOU agree
that the impartial Jobs Monitor jointly selected by the UMWA and BCOA under
Article II D-3 of the National Bituminous Coal Wage Agreement of 1998 shall
serve as the monitor under this MOU. The monitor shall review the job selections
pursuant to these provisions and investigate any alleged violations herein. The
monitor shall have the authority to request such information which may be
reasonably necessary in order to secure compliance with the job selection
provisions. The parties have the obligation to comply with such requests. In
that regard, the monitor shall be provided, on a regular basis at the end of
each calendar quarter, with reports of all jobs filled pursuant to the job
opportunity provisions. The report shall state the name of the mine, its
location, the total number of jobs of a classified nature filled and the names
and number of persons selected for jobs pursuant to this MOU from among either
active Employees or laid-off miners. The report shall be treated as
confidential; however, at the monitor's discretion, the report may be provided
to the UMWA. The monitor shall also be provided with a 60-day notice prior to
the start-up of production of any new operation covered by this MOU. A copy of
this 60-day notice shall also be sent to the Secretary-Treasurer of the UMWA.
The 60-day notice shall state the name of the operation, location, approximate
start-up date, and projected number of jobs of a classified nature available.
Any dispute alleging a breach of this MOU shall first be presented in writing to
the applicable nonsignatory Company. This written charge shall concisely explain
the basis for the dispute. Upon receiving a written charge, the nonsignatory
Company shall provide a response to the charging party. The nonsignatory Company
and the charging party shall mutually attempt to resolve the dispute. If the
dispute is not resolved by the nonsignatory Company and the charging party
within thirty (30) days, either the nonsignatory Company or the charging party
may submit the written charge to the monitor to resolve the dispute. The monitor
shall have the authority to reach a decision on written submissions. The monitor
shall also have the authority to conduct a hearing (formal or informal), request
position statements, request additional information or briefs, and take any such
steps as may be reasonably necessary to investigate and resolve the dispute. If
the monitor conducts a hearing and is unable to reach a decision within thirty
(30) days of the close of the hearing (or the close of the record if no hearing
shall be conducted), the monitor shall promptly advise the parties of the
reasons for the delay and the date when a decision will be submitted. Any
decisions rendered by the monitor shall be in writing and shall be final and
binding on all parties to that decision. The monitor shall not have the
authority to alter, amend, modify, add to or subtract from, or change in any way
the provisions of this MOU. All expenses and fees incurred by the monitor in the
resolution of disputes pursuant to this MOU shall be borne equally by the
appropriate District and the applicable nonsignatory Company. Nothing in this
MOU shall authorize the nonsignatory Company, the UMWA or any miner affected by
this MOU to utilize any existing or future contractual grievance procedure,
including but not limited to the


<PAGE>   129


grievance procedure in the NBCWA of 1998, to resolve any dispute that may arise
concerning the interpretation or application of this MOU. 
15. This MOU constitutes the entire Agreement between the parties concerning 
the subject matter discussed in the MOU.
So Agreed:

United Mine Workers        Signatory Employer
of America   [As Limited Agent for
      Parent Corporation and
      its Nonsignatory Coal
      Mining Subsidiaries]

Date  Date

APPENDIX B
REQUEST FOR EMPLOYMENT
Active Employees
I. Personal Information
Employee's Name:
Address:
Phone Number:
Social Security Number:
Current Employer:
Current Mine/Operation:
Current Job Title:
Total Length of Service with Current Employer:
          /                  /
        Year           Month Day
Employment Date at Mine/Operation:
II. List the jobs that you have the ability to perform and wish to be considered
for:



III. List the nonsignatory operations you wish to be considered for:



IV.  Signature of Employee:
Date Signed:


BITUMINOUS COAL OPERATORS' ASSOCIATION, INC.
COMPANIES FOR WHICH BCOA WAS AUTHORIZED TO REPRESENT FOR THE
NEGOTIATION OF THIS AGREEMENT


<PAGE>   130


Affinity Mining Company
Apogee Coal Company
  Arch of Alabama
  Arch on the Green
  Arch of Kentucky
  Arch of Illinois
  Arch of West Virginia
  Cutler Mining Company
Colony Bay Coal Company
Consolidation Coal Company
Eastern Associated Coal Corp.
Hobet Mining, Inc.
Island Creek Coal Company
Laurel Run Mining Company
Martinka Coal Company
McElroy Coal Company
Mountain View Coal Company
Old Ben Coal Company
Old Hickory Coal Company
Peabody Coal Company
Pine Ridge Coal Company
Quarto Mining Company
Sharples Coal Corp.
Squaw Creek Coal Company
Sterling Smokeless Coal Company



TABLE I-A
RETIREMENT DURING THE FIRST TWO YEARS OF THIS AGREEMENT-ESTIMATED PENSION FOR
RETIREMENT AT AGE 62

<TABLE>
<CAPTION>
    COLUMN A               COLUMN B             COLUMN C               COLUMN D
     Pre-89                   89                  90-93                 Post-93
Signatory Service     Signatory Service     Signatory Service     Signatory Service
<S>                     <C>                   <C>                 <C>          
  1   $  32.50          1    $40.00           1   $  44.50          1   $  47.50
  2   $  65.00                                2   $  89.00          2   $  95.00
  3   $  97.50                                3   $ 133.50          3   $ 142.50
  4   $ 130.00                                4   $ 178.00          4   $ 190.00
  5   $ 162.50                                                      5   $ 237.50
  6   $ 195.00                                                      6   $ 285.00
  7   $ 227.50                                                      7   $ 332.50
  8   $ 260.00                                                      8   $ 380.00
  9   $ 292.50                                                      9   $ 427.50
 10   $ 325.00                                                     10   $ 475.00
</TABLE>             
                                                                      

<PAGE>   131

<TABLE>
<S>                                                              <C>          
 11   $ 358.00                                                    11   $ 522.50
 12   $ 391.00                                                    12   $ 570.00
 13   $ 424.00                                                    13   $ 617.50
 14   $ 457.00                                                    14   $ 665.00
 15   $ 490.00                                                    15   $ 712.50
 16   $ 523.00                                                    16   $ 760.00
 17   $ 556.00                                                    17   $ 807.50
 18   $ 589.00                                                    18   $ 855.00
 19   $ 622.00                                                    19   $ 902.50
 20   $ 655.00                                                    20   $ 950.00
 21   $ 688.50                                                    21   $ 997.50
 22   $ 722.00                                                    22   $1045.00
 23   $ 755.50                                                    23   $1092.50
 24   $ 789.00                                                    24   $1140.00
 25   $ 822.50                                                    25   $1187.50
 26   $ 856.00                                                    26   $1235.00
 27   $ 889.50                                                    27   $1282.50
 28   $ 923.00                                                    28   $1330.00
 29   $ 956.50                                                    29   $1377.50
 30   $ 990.00                                                    30   $1425.00
 31   $1024.00                                                    31   $1472.50
 32   $1058.00                                                    32   $1520.00
 33   $1092.00                                                    33   $1567.50
 34   $1126.00                                                    34   $1615.00
 35   $1160.00                                                    35   $1662.50
 36   $1194.00                                                    36   $1710.00
 37   $1228.00                                                    37   $1757.50
 38   $1262.00                                                    38   $1805.00
 39   $1296.00                                                    39   $1852.50
 40   $1330.00                                                    40   $1900.00
</TABLE>
                                                                   
                                                                   
                                                                   
\TABLE I-B                                                         
                                                                   
RETIREMENT EFFECTIVE ON OR AFTER JANUARY 1, 2000-ESTIMATED PENSION FOR
RETIREMENT AT AGE 62


<TABLE>
<CAPTION>
    COLUMN A               COLUMN B             COLUMN C               COLUMN D
     Pre-89                   89                  90-93                 Post-93
Signatory Service     Signatory Service     Signatory Service     Signatory Service
<S>                     <C>                   <C>                 <C>          
  1   $  34.50          1    $42.00           1   $  46.50          1   $  49.50
  2   $  69.00                                2   $  93.00          2   $  99.00
  3   $ 103.50                                3   $ 139.50          3   $ 148.50
  4   $ 138.00                                4   $ 186.00          4   $ 198.00
  5   $ 172.50                                                      5   $ 247.50
</TABLE>
                                                                   
<PAGE>   132
                                                                  
<TABLE>
<S>                                           <C>                        
   6  $ 207.00                                   6   $ 297.00
   7  $ 241.50                                   7   $ 346.50
   8  $ 276.00                                   8   $ 396.00
   9  $ 310.50                                   9   $ 445.50
  10  $ 345.00                                  10   $ 495.00
  11  $ 380.00                                  11   $ 544.50
  12  $ 415.00                                  12   $ 594.00
  13  $ 450.00                                  13   $ 643.50
  14  $ 485.00                                  14   $ 693.00
  15  $ 520.00                                  15   $ 742.50
  16  $ 555.00                                  16   $ 792.00
  17  $ 590.00                                  17   $ 841.50
  18  $ 625.00                                  18   $ 891.00
  19  $ 660.00                                  19   $ 940.50
  20  $ 695.00                                  20   $ 990.00
  21  $ 730.50                                  21   $1039.50
  22  $ 766.00                                  22   $1089.00
  23  $ 801.50                                  23   $1138.50
  24  $ 837.00                                  24   $1188.00
  25  $ 872.50                                  25   $1237.50
  26  $ 908.00                                  26   $1287.00
  27  $ 943.50                                  27   $1336.50
  28  $ 979.00                                  28   $1386.00
  29  $1014.50                                  29   $1435.50
  30  $1050.00                                  30   $1485.00
  31  $1086.00                                  31   $1534.50
  32  $1122.00                                  32   $1584.00
  33  $1158.00                                  33   $1633.50
  34  $1194.00                                  34   $1683.00
  35  $1230.00                                  35   $1732.50
  36  $1266.00                                  36   $1782.00
  37  $1302.00                                  37   $1831.50
  38  $1338.00                                  38   $1881.00
  39  $1374.00                                  39   $1930.50
  40  $1410.00                                  40   $1980.00
</TABLE>
                                                               
                                                   
                                                   
Age 62 Pension                                     
                                                   
To estimate the amount of your pension when you retire, use Tables I-A or I-B
on pages 295-296 and the worksheet below.
                                                   
1. Using Column A, enter the monthly benefit for your years of signatory service
earned prior to February 1, 1989 ("Pre-89 signatory service").
$


<PAGE>   133


2. Using Column B, enter the monthly benefit for signatory service earned
between February 1, 1989 and January 31, 1990 ("89 signatory service").
$

3. Using Column C, enter the monthly benefit for signatory service earned
between February 1, 1990 and December 15, 1993 (" '90-'93 signatory service"). $

4. Using Column D, enter the monthly benefit for your expected years of
signatory service earned on or after December 16, 1993 ("Post-'93 signatory
service"). $

Add the four amounts. This is an estimate of your monthly pension amount if you
retire at age 62 or older.

If you plan to retire before age 62, estimate your early retirement benefit by
using Table II. First, calculate your pension at age 62, as set forth above,
using Tables I-A or I-B. Next, find the amount closest to your age 62 pension
under "Approximate Age 62 Benefit Amount" on Table II. Move across the table
from left to right to the dollar amount beneath the age at which you plan to
retire. This is your approximate monthly early retirement benefit.


<TABLE>
<CAPTION>
TABLE II
EARLY RETIREMENT
Approximate                        AGE
Age 62
Benefit
Amount    55        56       57      58      59       60       61
<S>     <C>      <C>      <C>      <C>     <C>     <C>      <C>   
$  500   395.00   410.00   425.00   440.00  455.00  470.00   485.00
$  525   414.75   430.50   446.25   462.00  477.75  493.50   509.25
$  550   434.50   451.00   467.50   484.00  500.50  517.00   533.50
$  575   454.25   471.50   488.75   506.00  523.25  540.50   557.75
$  600   474.00   492.00   510.00   528.00  546.00  564.00   582.00
$  625   493.75   512.50   531.25   550.00  568.75  587.50   606.25
$  650   513.50   533.00   552.50   572.00  591.50  611.00   630.50
$  675   533.25   553.50   573.75   594.00  614.25  634.50   654.75
$  700   553.00   574.00   595.00   616.00  637.00  658.00   679.00
$  725   572.75   594.50   616.25   638.00  659.75  681.50   703.25
$  750   592.50   615.00   637.50   660.00  682.50  705.00   727.50
$  775   612.25   635.50   658.75   682.00  705.25  728.50   751.75
$  800   632.00   656.00   680.00   704.00  728.00  752.00   776.00
$  825   651.75   676.50   701.25   726.00  750.75  775.50   800.25
$  850   671.50   697.00   722.50   748.00  773.50  799.00   824.50
$  875   691.25   717.50   743.75   770.00  796.25  822.50   848.75
$  900   711.00   738.00   765.00   792.00  819.00  846.00   873.00
$  925   730.75   758.50   786.25   814.00  841.75  869.50   897.25
$  950   750.50   779.00   807.50   836.00  864.50  893.00   921.50
$  975   770.25   799.50   828.75   858.00  887.25  916.50   945.75
</TABLE>



<PAGE>   134

<TABLE>
<S>     <C>      <C>      <C>      <C>     <C>     <C>      <C>   
$1,000   790.00   820.00   850.00   880.00  910.00  940.00   970.00
$1,025   809.75   840.50   871.25   902.00  932.75  963.50   994.25
$1,050   829.50   861.00   892.50   924.00  955.50  987.00  1018.50
$1,075   849.25   881.50   913.75   946.00  978.25 1010.50  1042.75
$1,100   869.00   902.00   935.00   968.00 1001.00 1034.00  1067.00
$1,125   888.75   922.50   956.25   990.00 1023.75 1057.50  1091.25
$1,150   908.50   943.00   977.50  1012.00 1046.50 1081.00  1115.50
$1,175   928.25   963.50   998.75  1034.00 1069.25 1104.50  1139.75
$1,200   948.00   984.00  1020.00  1056.00 1092.00 1128.00  1164.00
$1,225   967.75  1004.50  1041.25  1078.00 1114.75 1151.50  1188.25
$1,250   987.50  1025.00  1062.50  1100.00 1137.50 1175.00  1212.50
$1,275  1007.25  1045.50  1083.75  1122.00 1160.25 1198.50  1236.75
$1,300  1027.00  1066.00  1105.00  1144.00 1183.00 1222.00  1261.00
$1,325  1046.75  1086.50  1126.25  1166.00 1205.75 1245.50  1285.25
$1,350  1066.50  1107.00  1147.50  1188.00 1228.50 1269.00  1309.50
$1,375  1086.25  1127.50  1168.75  1210.00 1251.25 1292.50  1333.75
$1,400  1106.00  1148.00  1190.00  1232.00 1274.00 1316.00  1358.00
</TABLE>

APPENDIX A-PART I
UNDERGROUND AT DEEP MINES
STANDARD HOURLY AND STANDARD DAILY WAGE RATES
(INCLUDES ANNUAL WAGE INCREASES)

Effective Date    1/1/98   1/1/99   1/1/00

Wage Increase $ 0.40   $ 0.30   $ 0.30
             Grade 5
         Hourly Rate 1, 2  $ 18.315 $ 18.615  $ 18.915
         Daily Rate 3       146.52   148.92    151.32

CONCENTRATION OF CLASSIFICATIONS

         A. Continuous Mining Machine Operator   E. Longwall Machine Operator
         B. Electrician                          F. Welder, First Class
         C. Mechanic                             G. Roof Bolter
         D. Fireboss

Wage Increase  $ 0.40  $ 0.30  $ 0.30
              Grade 4


<PAGE>   135

         Hourly Rate 1, 2  $ 17.910 $ 18.210  $ 18.510
         Daily Rate 3       143.28   145.68    148.08

CONCENTRATION OF CLASSIFICATIONS

         A. Cutting Machine Operator       F. Rock Driller
         B. Dispatcher                     G. Continuous Miner Helper-Trainee
         C. Loading Machine Operator       H. Roof Bolter Helper-Trainee
         D. Machine Operator Helper        I. Maintenance Trainee (Max. 12 Mos.)
         E. General Inside Repairman       J. Electrician Trainee (Max. 12 Mos.)
            & Welder                       

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 3
         Hourly Rate 1, 2   $ 17.543 $  17.843  $  18.143
         Daily Rate 3        140.34    142.74     145.14

CONCENTRATION OF CLASSIFICATIONS

         A. Driller-Coal                      D. Faceman
         B. Shooter                           E. Dumper
         C. Precision Mason-Construction      F. Shuttle Car Operator

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 2
         Hourly Rate 1, 2  $ 17.320 $  17.620  $ 17.920
         Daily Rate 3       138.56    140.96    143.36

CONCENTRATION OF CLASSIFICATIONS

         A. Motorman                          D. Electrician Helper
         B. Maintenance Trainee (Max. 6 Mos.) E. Mechanic Helper
         C. Electrician Trainee (Max. 6 Mos.)

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 1
         Hourly Rate 1, 2  $ 17.248 $ 17.548 $ 17.848
         Daily Rate 3       137.98   140.38   142.78

CONCENTRATION OF CLASSIFICATIONS

         A. Beltman      E. General Inside Labor   I. Trackman
         B. Bonder       F. Mason                  J. Wireman
         C. Brakeman     G. Pumper                 K. Labor-Unskilled
         D. Bratticeman  H. Timberman

Wage Increase  $ 0.40    $ 0.30   $ 0.30
         Training Rate
         Hourly Rate 1, 2  $ 16.674 $ 16.974  $ 17.274
         Daily Rate 3       133.39   135.79    138.19

1 The Standard Hourly Wage Rate shall be computed by dividing the Standard Daily
Wage Rate by eight (8) hours and rounding off to three (3) decimal places.

2 The Straight Time Rate is the Hourly Rate set forth in this Appendix A for
each classification.

3 The Daily Rate set forth in this Appendix A applies only to Employees working
on traditional schedules under Article IV.

<PAGE>   136

APPENDIX A-PART II
STRIP AND AUGER MINES
STANDARD HOURLY AND STANDARD DAILY WAGE RATES
(INCLUDES ANNUAL WAGE INCREASES)
Effective Date    1/1/98   1/1/99   1/1/00
Wage Increase     $ 0.40   $ 0.30   $ 0.30
                 Grade 5
         Hourly Rate 1, 2    $ 19.078    $ 19.378     $ 19.678
         Daily Rate 3         138.32      140.49       142.67

CONCENTRATION OF CLASSIFICATIONS

         A. Coal Loading Shovel Operator
         B. Overburden Stripping Machine Operator
         C. Master Electrician

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 4

         Hourly Rate 1, 2    $ 18.427    $ 18.727     $ 19.027
         Daily Rate 3         133.60      135.77       137.95

CONCENTRATION OF CLASSIFICATIONS

         A. Electrician           D. Welder, First Class
         B. Machinist             E. Shovel and Dragline Oiler
         C. Mechanic              F. Groundman

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 3

         Hourly Rate 1, 2    $ 18.062    $ 18.362     $ 18.662
         Daily Rate 3          130.95     133.12       135.30

CONCENTRATION OF CLASSIFICATIONS

         A. Mobile Equipment Operator     E. Driller and Shooter
         B. Repairman                     F. Maintenance Trainee (Max. 12 mos.)
         C. Stationary Equipment Operator G. Electrician Trainee (Max. 12 mos.)
         D. Welder

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 2

         Hourly Rate 1, 2    $ 17.777    $ 18.077     $ 18.377
         Daily Rate 3         128.88      131.06       133.23

CONCENTRATION OF CLASSIFICATIONS

         A. Tipple Attendant    D. Machinist Helper  G. Dock Hand
         B. Electrician Helper  E. Repairman Helper  H. Maintenance Trainee 
                                                        (Max. 6 mos.)
         C. Mechanic Helper     F. Deck Hand, Boat   I. Electrician Trainee 
                                                        (Max. 6 mos.)

Wage Increase  $ 0.40    $ 0.30   $ 0.30


<PAGE>   137

              Grade 1
         Hourly Rate 1, 2    $ 17.696    $ 17.996     $ 18.296
         Daily Rate 3         128.30      130.47       132.65

CONCENTRATION OF CLASSIFICATIONS

         A. Car Dropper        E. Truck Driver Service
         B. Car Dumper         F. Utility Man
         C. Car Trimmer        G. Laborer-Unskilled
         D. Sampler

1 The Standard Hourly Wage Rate shall be computed by dividing the Standard Daily
Wage Rate by seven and one-quarter (7 1/4) hours and rounding off to three (3)
decimal places.

2 The Straight Time Rate is the Hourly Rate set forth in this Appendix A for
each classification.

3 The Daily Rate set forth in this Appendix A applies only to Employees working
on traditional schedules under Article IV.

APPENDIX A-PART III
PREPARATION PLANTS AND OTHER SURFACE FACILITIES FOR DEEP OR SURFACE MINES
STANDARD HOURLY AND STANDARD DAILY WAGE RATES
(INCLUDES ANNUAL WAGE INCREASES)

Effective Date    1/1/98   1/1/99   1/1/00

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 4

         Hourly Rate 1, 2    $ 18.264    $ 18.564     $ 18.864
         Daily Rate 3         132.41      134.59       136.76

CONCENTRATION OF CLASSIFICATIONS

         A. Electrician            D. Welder, First Class
         B. Machinist              E. Preparation Plant Central Control Operator
         C. Mechanic

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 3

         Hourly Rate 1, 2    $ 18.020    $ 18.320     $ 18.620
         Daily Rate 3         130.65      132.82       135.00

CONCENTRATION OF CLASSIFICATIONS

         A. Mobile Equipment Operator     E. Railroad Car Loader Operator
         B. Repairman                     F. Maintenance Trainee (Max. 12 mos.)
         C. Stationary Equipment Operator G. Electrician Trainee (Max. 12 mos.)
         D. Welder

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 2

         Hourly Rate 1, 2    $ 17.737    $ 18.037     $ 18.337


<PAGE>   138

         Daily Rate 3         128.59      130.77       132.94

CONCENTRATION OF CLASSIFICATIONS

         A. Tipple Attendant          E. Mechanic Helper
         B. Dock Man                  F. Repairman Helper
         C. Electrician Helper        G. Maintenance Trainee (Max. 6 mos.)
         D. Machinist Helper          H. Electrician Trainee (Max. 6 mos.)

Wage Increase  $ 0.40    $ 0.30   $ 0.30
              Grade 1

         Hourly Rate 1, 2    $ 17.657    $ 17.957     $ 18.257
         Daily Rate 3         128.01      130.19       132.36

CONCENTRATION OF CLASSIFICATIONS

         A. Car Dropper   E. Bit Sharpener              H. Preparation Plant, 
                                                           Utility Man
         B. Car Dumper    F. Truck Driver, Service      I. Surface Utility Man
         C. Car Trimmer   G. Equipment Operator Service J. Laborer-Unskilled
         D. Sampler

1 The Standard Hourly Wage Rate shall be computed by dividing the Standard Daily
Wage Rate by seven and one-quarter (7 1/4) hours and rounding off to three (3)
decimal places.

2 The Straight Time Rate is the Hourly Rate set forth in this Appendix A for
each classification.

3 The Daily Rate set forth in this Appendix A applies only to Employees working
on traditional schedules under Article IV.

APPENDIX B-PART I
UNDERGROUND AT DEEP MINES
CLASSIFICATION    JOB TITLE WITHIN CLASSIFICATION

5-A      CONTINUOUS        Continuous Mining Machine Fully Trained Continuous
         MINING MACHINE             Operator         Mining Machine Operator
         OPERATOR                          Helper
5-B      ELECTRICIAN       Electrician     Electric Repairman   Radioman
                  Electrician, Experienced Head Motor Inspector Radio Repairman
                  Electrician, Gang Leader Motor Inspector      Radio Telephone 
                                                                 Mechanic
                  Electrician Leader       Motor Repairman
5-C      MECHANIC Longwall Mechanic Mechanic, Chief  Repairman, A. C.
                  Machine Repairman Mechanic, Leader Repairman, 1st Class
                  Machinist         Mechanic, 1st Class      Repairman-Mechanic
                  Maintenance Man   Repairman                Section Repairman

<PAGE>   139




                  Mechanic Repairman, Chief

5-D      FIREBOSS Belts, Pump Examiner      Gas Watchman-Mine
                  Fireboss          Examiner
                  Gas Watchman      Mine Examiner

5-E      LONGWALL MACHINE  Longwall Machine Operator          Longwall Planer
                  Operator          Shear Operator
         OPERATOR Longwall Miner Operator   Planer Operator

5-F      WELDER, FIRST CLASS        *Welder, 1st Class       * Note: Performing 
any welding work required, including vertical, overhead, and flat welding in 
accordance with approved standards.

5-G      ROOF BOLTER       Roof Bolter Operating Equip-Roof Bolter Fully Trained
Roof Bolter
                  ment Mounted on and Part of Roof Bolter, Shift Leader  Helper
                  Continuous Mining Machine Stoper Operator

4-A      CUTTING  Arc Wall Cutting Machine  Cutting Machine Operator   Leader 
or Cutting Machine
         MACHINE           Operator         (Shearing)        Operator & Other 
Face
         OPERATOR Cutter and Scraper        Cutting Machine Helper
                  Cutting and Loading       (Shearing)

4-B      DISPATCHER        Dispatcher       Dispatcher-Dumper Rotary Dump 
Operator
                  Dispatcher Bottom Man     Dumper Dispatcher Dispatcher

4-C      LOADING MACHINE   Gobbing with Joy Loading Machine,  Slate Man 
         Rock Operator
         OPERATOR Loader, Mechanical Unit   Mobile Rock Loading Slate Loader
                  Loader Operator, Rock     Machine Operator  Slate and 
Refuse Handler
                  Loading Machine Helper-Rock  Rock Joy Operator  Stall Machine 
Operator
                  Loading Machine Operator  Rock Loader
                  Loading Machine Operator on        Rock Loading Machine
                           Rock             Operator

4-D      MACHINE  Continuous Mining Machine Longwall Headgate Man      
         Longwall Machine Tail
         OPERATOR HELPER            Operator Helper           Longwall Helper   
         Operator
                  Loading Machine Operator  Longwall Jack Machine      Longwall 
Machine Helper
                           Helper           Operator       Longwall Prop Man
                  Longwall Cornerman                       Machine Runner Helper
                                                     Planer Helper
4-E      GENERAL INSIDE    Airdox Mechanic  Conveyor Maintenance Man   
         Repairman, 2nd Class


<PAGE>   140



         REPAIRMAN AND Battery Maintenance  Dumper-Mechanic   Repairman, 
Radio & Telegraph
         WELDER   Battery Mechanic  Electrician, 2nd Class Tipple & Bottom 
Mechanic
                  Battery Repairman Electrician General Repairman   Track Welder
                  Belt Mechanic     Electric Panel Man        Vulcanizer
                  Belt Repairman    General Repairman Welder
                  Belt Vulcanizer   Machine Repairman, 2nd Class  Welder, Inside
                  Bottom Welder     Mechanic, 2nd Class       Welder, 2nd Class
                  Cable Splicer     Mine Car Repairman        Welder & Repairman
                  Car Repairman     Pump Repairman

APPENDIX B-PART I
UNDERGROUND AT DEEP MINES (Continued)
CLASSIFICATION  JOB TITLE WITHIN CLASSIFICATION

4-F      ROCK DRILLER      Bolt Crew Leader Recovery Wrench Operator   Roof 
Bolt Reclaimer
                  Bolt Crewman      Rock Crew        Roof Driller
                  Bolt Recovery     Rock Driller     Stone Driller

4-G      CONTINUOUS MINER  Continuous Miner Helper
         HELPER-TRAINEE    Trainee

4-H      ROOF BOLTER       Roof Bolter Helper
         HELPER-TRAINEE    Trainee

4-I      MAINTENANCE       Maintenance Trainee
         TRAINEE  (Max. 12 mos.)
         (Max. 12 mos.)

4-J      ELECTRICIAN       Electrician Trainee
         TRAINEE  (Max. 12 mos.)
         (Max. 12 mos.)

3-A      DRILLER-COAL      Coal Driller     Driller and Shooter    Driller and 
Shooter, Slate
                  Driller

3-B      SHOOTER  Shooter  Shot Firer

3-C PRECISION MASON Construction of overcasts, underground buildings and
foundations, haulage walls, and corners.
         -CONSTRUCTION

3-D      FACEMAN  Chock Operator    Longwall Faceman Nozzleman-Rigiseal
                  Continuous Miner Faceman Loader Operator Helper, Rigi Seal Man
                  Faceman           Shuttle Car      Scoop Operator
                  Faceman on Conveyor       Loader, Shotfirer and Drillman
         Track Machine Operator
                  Facer Longwall Utility Man Utility Man
                  Foam Spray Machine Operator     Longwall Utility Man Helper
         Utility Man-Continuous
                  Grademan Mobile Bridge Operator             Miner


<PAGE>   141



                  Grader Operator   Mobile Lift Machine Operator
UN-A-TRAC Operator
                  Jack Setter       Molveyor Operator

3-E      DUMPER   Car Dumper        Rotary Dumper    Rotary Operator
                  Dumper

3-F      SHUTTLE CAR       Battery Tractor Operator Rubber Tired Battery Tractor
         Rubber Tired Shuttle Car
         OPERATOR Buggy Operator            Operator          Operator
                  Car Operator      Rubber Tired Jeep Operator  Ram Car Operator
                                                     Shuttle Car Operator

2-A      MOTORMAN*         Belt Motorman    Motorman Wireman  Supplyman-Motorman

                  Brakeman-Motorman Operator, 501    Supplyman Tractor Operator
                  Bratticeman-Motorman      Pumper-Motorman   Timberman,

Motorman

                  Equipment Mover   Recovery-Motorman         Track Tamper
                  General Labor-Motorman    Rock Duster Motorman       Trackman,

Motorman
                           Inside Supply Jeep Operator Tractor Operator
                  Kersey Operator    Supplyman, Jeep     Wireman-Motorman
                  Motorman
                  Motorman Pumper   *       Main Line Motormen operating motors
which take coal to its
                  Motorman Rock Duster      final destination shall be paid at 
the Job Class 3 Rate of Pay.

2-B      MAINTENANCE       Maintenance Trainee
         TRAINEE  (Max. 6 mos.)
         (Max. 6 mos.)

APPENDIX B-PART I
UNDERGROUND AT DEEP MINES (Continued)
CLASSIFICATION    JOB TITLE WITHIN CLASSIFICATION

2-C      ELECTRICIAN       Electrician Trainee
         TRAINEE  (Max. 6 mos.)
         (Max. 6 mos.)

2-D      ELECTRICIAN       Battery Charger, Storage           Electrician Helper
         Storage Battery Charger
         HELPER   Battery Man       Electrician, Limited      Telephone Man
                  Electrician Apprentice    Experience

2-E      MECHANIC Car Cleaning Mechanic     Machine Repairman Helper   Motor 
Inspector Helper
         HELPER   Car Repairman Helper      Machinist Helper  Oiler
                  Greaser           Mechanic Apprentice       Repairman-Helper
                  Lubricator        Mechanic Helper

1-A      BELTMAN  Belt Dumper       Belt & Shuttle Car Reliefman    Conveyorman
                  Belt Greaser      Belt/Slate       Load/Head (Loads Pit Cars)


<PAGE>   142


                  Belt Haulage Man  Belt Spillman    Loader Headman
                  Belt Hopper Operator  Belt Vulcanizer Helper  Loader/Head 
                  Operator
                  Belt Installer Boom Man   Loading Point Operator
                  Belt Machine Operator     Boom Operator     Longwall Loading
Boom Man
                  Belt Maintenance  Conveyor Attendant      Slope Belt Patrolman
                  Beltman  Conveyor Belt Cleaner            Slopeman
                  Beltman, A & B    Conveyor Belt Man       Unloader Operator
                  Beltman, Inside   Conveyor-Boom Man       Unloading Operator 
on Belt
                  Belt Moving Conveyor-Installation Man  Unloading Operator on
                  Belt Operator Conveyor-Move to New               Conveyor
                  Belt Patrolman            Set Up
                  Belt Reliefman    Conveyor Leader
                  Belt Service Man

1-B      BONDER   Bonder

1-C      BRAKEMAN Brakeman          Nipper Snapper

                  Car Coupler       Rock Dust Man or Brakeman Supply-Brakeman
                  Car Coupler-Shaft Bottom  Rope Rider        Trip Rider
                  Coupler

1-D      BRATTICEMAN       Brattice Man  Ventilation & Drainage Man  Ventilation
Man

1-E      GENERAL INSIDE    Air Course Laborer        Hoistman, Other Slope,
         Recovery Crew Leaders
         LABOR         Air Sampler              Devel. Etc.       Recovery Man
                  Airdox       Man Materialman    Rock Driller Helper 
                  Bar Puller   Material Recoverer Rock Dust Crew 
                  Bin Feeder   Miscellaneous Face Cleanup Rock Duster 
                  Bin Operator Mover Rockman 
                  Bottom Belt Hopper Man     Moving Crew Rodman 
                  Bottom Cager Move Crew     Rollerman
                  Bottom Dropper     Move Up, Sectional   Roof Bolt Assembly 
                  Bottom Man   Moverman      Set-up Crew 
                  Cableman     Mover & Rockduster   Set-up Man
                  Cager Moving Conveyor to New      Shakeout, Shakeout Operator 
                  Cager Leader             Set Up   or Shaker 
                  Coal Mucker  Moving Equipment to New  Shoveler 
                  Construction Man, Inside             Set Up Slate Disposal Man
                  Crusher Operator   Pipe & Fresh     Water Man       Slateman 
                  Crusher & Vibrator Operator Pipe Line ManSlateman Leader 
                  Dumper Helper      Pipe Layer       Supply Recovery 
                  Elevator Operator  Pipeman          Supplyman
                  Face Cleaner Pipeworkers      Supplyman-Bottom 
                  General Labor, Inside Planeman         Supplyman Crew 
                  Haulage Man    Pointman           Surveyor Helper


<PAGE>   143



                  Head Rockman      Powderman        Tampman
                  Hiker Operator    Ramp Builder     Utilityman Apprentice
                  Hoist Operator    Reclaiming Materials      Utilityman Helper
                  Hoistman, Inside  Recovery Crew    Wet Rock Duster

APPENDIX B-PART I
UNDERGROUND AT DEEP MINES (Continued)
CLASSIFICATION    JOB TITLE WITHIN CLASSIFICATION

1-F      MASON    Blockman Block & Stoppings Mason
                  Block Layer       Brattice Mason

1-G      PUMPER   Pump & Pipeman    Pumper  Pumper Leader

1-H      TIMBERMAN         Bridgeman        Prop Setter       Timberman-Trackman
                  Headerman         Timberman

1-I      TRACKMAN Head Track Man    Track Crew Leader Track & Wire Man
                  Roadman  Track Layer      Trackman
                  Roadman-Switch & Heavy    Track Leader      Trackman Leader
                           Trans.   Track/Trolley Man Trackman Pusher

1-J      WIREMAN* Wire Hanger       *       Wiremen directed by management to 
perform work for
                  Wireman                   which they must be certified by
                                            state or federal law shall be paid
                                            at the Job Class 5 Rate of pay.

1-K      LABORER- Belt Cleaner      Ditchman Rock Duster Helper
         UNSKILLED         Beltman Helper   Drainage Man      Rockman Helper
                  Beltman "C"       Feederman        Switch Cleaner
                  Belt Operator Helper      Ginman   Timberman Helper
                  Bottom Laborer    Labor/Motor      Track Cleaner
                  Bratticeman Helper        Laborer  Trackman Helper
                  Cagers' Assistant & Helper Mason Helper     Ventilation Helper
                  Cleaner  Other Inside Labor        Warehouse Man
                  Cleanup Man       Pipeman Helper   Washer Cleanup
                  Coal Loader       Pumper, Apprentice        Wireman Helper
                  Conveyor Cleaner  Road Cleaner     Yardman

APPENDIX B-PART II
STRIP AND AUGER MINES
CLASSIFICATION    JOB TITLE WITHIN CLASSIFICATION
5-A      COAL LOADING      Coal Loading Shovel Operator       Front End Loader-
Coal     Loader Operator, 10 Yds.
         SHOVEL OPERATOR   Engineer, Loading   Loader Engineer   Shovel 
Engineer, Coal Loading

5-B      OVERBURDEN        Coal Stripping Shovel Operator     Front End Loader-
Stripping     Shovel or Dragline Operator


<PAGE>   144


         STRIPPING MACHINE          Construction Mobile Crane    Power Shovel 
Operator          over 8 Yds.
         OPERATOR          Operator-Erection and     Relief Shovel Operator     
         Shovel Operator
                  Dismantlement    Shovel Engineer   Shovel Operator, 10 Yds.
                  Dragline Operator Shovel Engineer, Overburden Stripping Shovel
Operator
                  Dragline Operator, 4500   Shovel or Dragline Operator  Wheel 
Operator
                  Dragline Operator, 30 Yds.         4-8 Yds.

5-C      MASTER   *Electrician Leader  *    Note: The electrician assigned to 
install electrical components and 
         ELECTRICIAN       *Master Electrician          trouble-shoot electrical
failures on electric shovels and draglines.

4-A      ELECTRICIAN       Electrician  Electrician, Lineman  Tipple Electrician
                  Electrician, 1st Class    Shovel Inspector

4-B      MACHINIST         Machinist        Machinist, 1st Class

4-C      MECHANIC Mechanic Prep. Plant Mechanic      Truck Mechanic
                  Mechanic, Garage  Shop Mechanic    Truck & Tractor Mechanic
                  Mechanic, 1st Class

4-D               WELDER, 1ST CLASS *Welder, 1st Class * Note: Performing any
                  welding work required, including vertical, *Welder Leader
                  overhead, and flat welding in accordance with approved
                  standards.

4-E      SHOVEL & Coal Loading Shovel Oiler Shovel Oiler      Tipple Oiler
         DRAGLINE OILER  Coal Stripping Shovel Oiler Shovel Oiler, Coal Loading
         Wheel Oiler
                  Dragline Oiler    Shovel Oiler, Overburden

APPENDIX B-PART II
STRIP AND AUGER MINES (Continued)
CLASSIFICATION    JOB TITLE WITHIN CLASSIFICATION
4-F      GROUNDMAN         Coal Loading Groundman    Groundmen, Loading Shovel
                  Groundmen Around Shovel & Groundmen on Wheel
                           Dragline Loader Groundmen

3-A      MOBILE   Auto Patrol       Locomotive Operator      Semi-Tractor Driver
         EQUIPMENT Boat Operator    Low Boy Operator  *Tractor Driver, under D-6
         OPERATOR Boat Pilot        Maintainer Operator      *Tractor Operator
                  *Bulldozer Operator  Mobile Crane Operator *Tractor Operator, 
D-8
                  *Carryall Operator  Motor Grader Operator Traxcavator Operator
                  *Dozer Operator   *Payloader Operator       Truck Driver, Coal
                  *End Loader       Pilot            Truck Driver, Gob or Refuse
                  *Front End Loader Reclamation Tractor Operator   Truck Driver,
Haulage


<PAGE>   145


                  Grademan   Road Maintenance   Truck Operator, When 
                  Grader Operator    Road Patrol Operator    Hauling Coal 
                  Haulage Trailer Operator   Rubber Tired Tractor Tugboat Pilot
                  Heavy Equipment Operator     Operator 
                  High Lift Operator 
                  Hydraulic Equipment Operator 
                  *Le Tourneau Operator (Pan) *Note: When these machines are 
engaged in the removal 
                  Locomotive Engineer of overburden as an integral part of the 
                  overburden 
                  Locomotive Fireman removal process, the operator  will be 
paid at Job Rate 5.

3-B      REPAIRMANBlacksmith     Electrician, 2nd Class Prep. Plant Maintenance
Man
                  Car Repairman     Machine Repairman         Repairman
                  Carpenter         Mechanic, 2nd Class       Shovel Repairman
                  Electric Repairman, 2nd Class      Plumber  Tipple Repairman

3-C      STATIONARY        Auger Crew       Dock Operator  Rock Crusher Operator
         EQUIPMENT         Auger Operator   Dryer Operator    Switchboard Man
         OPERATOR Barge Loader Operator &   Plant Operator    Tipple Fireman
                           Barge Loader     Portable Crusher Operator
                           Tipple Operator
                  Boom Operator     Retarder Man     Tipple Washer Operator
                  Derrick Operator  Retarder OperatorTower Operator at River
                  Dock Dumpers      River Dock Operator

3-D      WELDER   Tipple Welder     Welder  Welder Outside

3-E      DRILLER & Bank Driller     Driller  Shooter on Overburden
         SHOOTER  Coal Driller      Driller & Shooter         Shot Firer on Coal
                  Coal Shooter      Driller & Shot Firer      Tampman
                  Drill Operator    Driller on Overburden

3-F      MAINTENANCE       Maintenance Trainee
         TRAINEE  (Max. 12 mos.)
         (Max. 12 mos.)

3-G      ELECTRICIAN       Electrician Trainee
         TRAINEE  (Max. 12 mos.)
         (Max. 12 mos.)

2-A      TIPPLE ATTENDANT  Tippleman        Switchman

2-B      ELECTRICIAN       Electrician Apprentice    Electrician Helper
         HELPER

2-C      MECHANIC HELPER   Mechanic Apprentice       Mechanic Helper, Mach. Shop
         Truck Mechanic Helper
                  Mechanic Helper

APPENDIX B-PART II
STRIP AND AUGER MINES (Continued)
CLASSIFICATION    JOB TITLE WITHIN CLASSIFICATION

2-D      MACHINIST HELPER  Machinist Helper   Machinist Apprentice       
         Machinist, 2nd Class

2-E      REPAIRMAN HELPER  Greaser  Truck Oiler      Welder Helper


<PAGE>   146

                  Serviceman
2-F      DECK HAND, BOAT       Deck Hand, Boat

2-G      DOCK HANDDock Hand

2-H      MAINTENANCE    Maintenance Trainee
         TRAINEE  (Max. 6 mos.)
         (Max. 6 mos.)

2-I      ELECTRICIAN    Electrician Trainee
         TRAINEE  (Max. 6 mos.)
         (Max. 6 mos.)
1-A      CAR DROPPER    Car Dropper    Car Rider       Railroad Car Dropper
           Car Handler  Car Runner or SpotterTrip Rider

1-B      CAR DUMPER*    Dumper     *       Note: A Car Dumper Operator shall 
be paid at the Job 
                             Class 3 Rate of pay when equipment is being 
operated to                  dump the car.

1-C      CAR TRIMMER    Car Trimmer

1-D      SAMPLER  Coal Sampler

1-E      TRUCK DRIVER,  Supply Truck Driver  Truck Driver, Outside Pit   Truck
Driver without Trailer
         SERVICE  Teamster      Truck Driver, Supply Water Hauler
              Truck Driver  Truck Driver, Utility Water Truck Driver

1-F      UTILITY MAN    Driller's Helper        Preparation Plant Pumper   Water
Boy
              Driller's Helper on Overburden    Pumper       Water Carrier
              Loader Pumper         Supplyman   Waterman
              Maintenance, Misc.    Track Repairman   Water Treater
              Painter  Trackman
              Preparation Man       Utility Man
1-G      LABORER-  Auger Helper     Night Hostler  Shop Man
         UNSKILLED Bin Oiler        Nitrate Bagger Shot Firer Helper
                  Car Cleaner  Outside Tipple Labor Slate Picker
                  Flagger      Pin Puller     Tipple, All Other
                  Greaser Helper       Pit Hand Shoveler     Tipple Cleaner
                  Janitor  Pit Man     Tipple Laborer
                  Laborer      Screen Man   Track Labor
                  Laborer & Helper     Shooter Helper     Washer
                  Loader Labor Shooter's Helper on Overburden    Yardman
                  Man Working Around Tipple Shop Laborer




<PAGE>   147







APPENDIX B-PART III
PREPARATION PLANTS AND OTHER SURFACE FACILITIES FOR DEEP OR 
SURFACE MINES
CLASSIFICATION JOB TITLE WITHIN CLASSIFICATION

4-A   ELECTRICIAN       Armature Winder  Electrician & Mechanic     
      Lineman
         Coil Winder               Combined          Lineman, 1st Class
         Electrician       Electrician Lineman       Lineman Leader
         Electrician, A. C.     Electric Motor Repairer       Master Electrician
         Electrician Chief or Head    Electrician Panel Man Motor Inspector
         Electrician Crew Leader      Electric Repairman   Plant Electric 
Repairman,
         Electrician, Experienced     Electric Repairman, 1st Class      1st 
Class

         Electrician, Gang Leader     Electric Repair Crew Leader Repairman, A. 
C.
         Electrician, 1st Class Electrician, Shop     Repairman, Radio &
Telephone
         Electrician Leader     Head Motor Inspector Shop Electrician
                                      Washer Electrician
4-B   MACHINIST Latheman        Machinist, 1st Class  Machinist Millwright
         Lathe Operator         Machinist Group Leader      Machine Repairman
         Machinist      Machinist Leader      Maintenance Leader

4-C   MECHANIC Aerial Tram Mechanic           Heavy Equipment Repairman  
      Repairman Mechanic
         Auto Mechanic     Maintenance Leader        Repairman Special
         Blacksmith, 1st Class Mechanic        Shop Mechanic
         Blacksmith, Head  Mechanic, 1st Class  Tipple Mechanic
         Diesel Mechanic   Mechanic Leader      Top Mechanic
         Euclid Mechanic   Plant Mechanic       Truck Mechanic
         Garage Mechanic   Repairman, Chief     Truck Repairman, 1st Class
         Head Truck MechanicRepairman, 1st Class Washer Mechanic

4-D   WELDER, FIRST     *Top Welder
      CLASS    *Welder, 1st Class    *   Note: Performing any welding work 
required, including
               *Welder, Master       vertical, overhead, and flat welding in
accordance with
                                     approved standards.

4-E   PREPARATION PLANT              *Cleaning Plant Central
      CENTRAL CONTROL                  Operator    *      Note: The operator of
a coal preparation plant where the
      OPERATOR *Preparation Plant Operator       controls for the plant are
centrally located and the respon-


<PAGE>   148

 
             *Wash Operator, Chief       sibility for these controls is assigned
to this operator.

3-A      MOBILE   Athey Wagon Grader Operator     Refuse on Gob Hauler
         EQUIPMENT Boat Pilot  Heavy Equipment Operator   Scoopmobile 
Operator

         OPERATOR Boat Operator High Lift Operator  Scraper
             Bulldozer Operator  Hydrocrane Operator Shuttle Car Operator
             Bulldozer & Truck Operator  Hydraulic Equipment Operator
         Ldg. Coal RR.
             Cat Operator  Locomotive Operator Skid Load Operator
             Carryall Operator  Low Boy Operator    Tractor Operator
             Crane Operator     Michigan Load Operator     Tractor Trailer

Operator
             Diesel Engineer    Mobile Crane Operator      Tractor Truck

Operator
             Diesel Operator    Mobile Equipment Operator  Tram Operator
             Diesel Truck OperatorMotor Grader Operator    Truck, Crane & Front
End
             Diesel Locomotive Operator Motor Grader Operator,           Loader 
Operator
             Dinkey Engineer            1st Class    Truck Driver, Coal
             Dozer Operator, Stockpile Lab.    Motorman, Outside   Truck Driver,
Gob or Refuse
             End Loader Operator Motorman, Supplyman        Truck Driver, 
Haulage
             Euclid Driver Payloader Operator  Truck Driver, Heavy Duty
             Euclid Operator, Refuse   Payloader, Tractor & Shovel Truck Driver,
Heavy Duty, Gob
                    Disposal           Operator
             Front End Loader  Pilot
APPENDIX B-PART III
PREPARATION PLANTS AND OTHER SURFACE FACILITIES FOR DEEP OR SURFACE MINES 
(Continued)
CLASSIFICATION  JOB TITLE WITHIN CLASSIFICATION
3-B  REPAIRMAN Airdox Mechanic   General Repairman   Plumber
          Automotive Repairman   Hydraulics Man      Repairman
          Battery Repairman   Hydraulics Repairman   Riverman Mechanic
          Belt Mechanic Lamphouse Repairman       Shop Man
          Belt Vulcanizer    Lear Car Repairman   Steel Worker, Head
          Blacksmith    Locomotive Repairman      Steel Worker Rigger
          Blacksmith, Central Shop   Maintenance Man     Table Repairman
          Carpenter     Mason Tipple Repairman
          Carpenter, 1st Class  Millwright   Top Maintenance
          Carpenter, Gang Leader    Mine Car Repairman  Washer Repairman
          Carpenter, Head     Motor Repairman     Yard Mechanic
          

<PAGE>   149


                  Car Repairman     Motor & Machine Repair
                  Car Repairman, Head       Outside Repairman
3-C      STATIONARY     Aerial Tramway Operator   Filter OperatorRiver Tipple 
Operator
         EQUIPMENT Barge Loader Operator-   Froth Cell Operator Screen House 
Operator
         OPERATOR      Barge Loader   Furnace Operator  Screening Plant 
Operator
              Barge Mover Gravity Hoist Operator    Secondary Heavy Media
              Blending Bin Operator     Head House Operator    Operator 
              Blending Plant Operator   Heat Dryer Operator Shakeout Operator  
              Breaker Operator    Heavy Media Operator      Skip Hoist Engineer
              Coarse Coal Operator Hoistman    Slate Hoist Operator    
              Cleaning Plant Operator    Hoist Engineer      Slope & Hoist 
Engineer      
              Coal Hoisting Engineer   Hoist Operator Stacker Operator 
              Combination Lampman &    Hoist Engineer, Supplies    Sub-Station 
Oper. & Fan
                   Hoist Engineer    Jig Operator     Tender 
              Cone Operator Loading Point Operator    Sump Operator 
              Control Man   Main Panel Board Operator   Supply Hoist 
              Control Operator    Manway Hoist Engineer, Elec.    Supplyman-
Hoist Engineer
              Crusher House Operator    Material Hoistman   Table Operator 
              Crusher Operator   Media Operator    Table Plant Operator 
              Cyclone Operator    Middling Circuit Operator  Thickener Operator 
              Daniels Washer Operator   Pellet Plant Operator Tipple Dryerman &
Washer        
              Deister Table Operator    Plant Controlman    Tipple Operator 
              De Waterer   Plant Operator Tipple Operator with Central 
              Dock Operator Preparation Plant Panel         Control 
              Dorr Thickener Operator        Operator        Tipple Starter 
              Drum Runner Processing Plant Operator    Tower Operator 
              Dry Cleaner Operator Pumper & Deister Table     Vessel Operator 
              Dry Plan Operator        Operator     Washer Operator 
              Dryer Operator    Raw Coal Operator    Washer Operator, Inside 
              Dryer Floor Operator Refuse Belt Operator  Wet Plant Attendant 
              Dryer Unit Operator  Refuse Crusher Operator  Wet Plant Operator 
              Flash Dryer Operator  River Loading Equipment    Whirley Operator
              Floatation Plant Operator          Operator 
              Fine Coal Operator
3-D      WELDER   Shop Welder       Welder  Welder & Repairman
3-E      RAILROAD CAR      Car Loader Operator      Railroad Car Loader Operator
         LOADER OPERATOR
3-F      MAINTENANCE       Maintenance Trainee


<PAGE>   150


         TRAINEE      (Max. 12 mos.)
         (Max. 12 mos.)

3-G      ELECTRICIAN      Electrician Trainee
         TRAINEE   (Max. 12 mos.)
         (Max. 12 mos.)

APPENDIX B-PART III
PREPARATION PLANTS AND OTHER SURFACE FACILITIES FOR DEEP OR 
SURFACE MINES (Continued)
CLASSIFICATION JOB TITLE WITHIN CLASSIFICATION
2-A   TIPPLE ATTENDANT    Binman, Outside       Mixer Helper     Sludge Tank 
Tender
          Blending Bin Oper. Helper  Plant Operator Helper Table Operator
Helper
          Boom Man   Processing Plant Operator    Tipple Operator Assistant
          Cleaning Plant Attendant        Asst.  Wash Box Attendant
          Cleaning Plant Oper. Helper  Pump Attendant   Washer Helper
          Dryer Attendant       Pumper        Washer, Inside
          Filter Operator Helper Pumper, Floatation Plant  Wet Plant Operator
Helper
          Fine Coal Operator Helper    Secondary Heavy Media
          Heavy Media Operator Helper               Oper. Helper
2-B       DOCK MAN Barge Man   Dock Hand     Riverman
               Deck Hand,Boat  Head Riverman       Riverman Helper
2-C       ELECTRICIAN       Cable Splicer Electrician,Limited  Power Man
          HELPER    Cable Vulcanizer         Experience   Shop Electrician, 2nd 
Class
               Electrician Helper   Lineman Helper    Shop Electrician Helper
               Electrician Helper, Outside  Lineman, 2nd Class
               Electrician, 2nd Class Motor Inspector Helper
2-D       MACHINIST HELPER        Machinist Helper     Machinist, 2nd Class
2-E       MECHANIC HELPER         Building Maintenance Mechanic Helper   Motor 
Inspector Helper
               Machine Repairman Helper  Mechanic, 2nd Class Tipple Mechanic
Helper

2-F       REPAIRMAN HELPER  Blacksmith, 2nd Class Repairman, Basic   Tire 
Repairman
               Blacksmith Helper   Repairman, Helper  Truck Repairman, 2nd Class
               Car Repairman Helper    Steel Worker Helper   Washer Repairman 
Helper
               Greaser       Sump Repairman       Welder Helper
               Oiler         Tipple Greaser Welder, 2nd Class
               Plant Oiler   Tipple Oiler
               Repairman, 2nd Class Tipple Repairman Helper
2-G       MAINTENANCE       Maintenance Trainee
          TRAINEE  (Max. 6 mos.)




<PAGE>   151

         (Max. 6 mos.)
2-H      ELECTRICIAN         Electrician Trainee
         TRAINEE  (Max. 6 mos.)
         (Max. 6 mos.)

1-A      CAR DROPPER         Brakeman      Head Car Dropper Rail Loadouts
              Car Dropper    Load Dropper  Railroad Car Dropper
              Car Handler    Load-Out Attendant   Railroad Car Handler
              Car Pincher    Load Out Rider
              Diesel Brakeman      Nipper

1-B      CAR DUMPER*         Car Coupler  Mine Car Dumper & Coupler Tipple 
Topman & Dumper
              Car Dumper     Railroad Car Unloader    Top Dumper
              Car Dumper-Screen Oper.
              Car Unloader
              Dumper       *    Note: A Car Dumper Operator shall be paid at the
Job
              Dumper Operator          Class 3 Rate of pay when equipment is 
being operated to
                                dump the car.





APPENDIX B-PART III
PREPARATION PLANTS AND OTHER SURFACE FACILITIES FOR DEEP OR 
SURFACE MINES (Continued)
CLASSIFICATION  JOB TITLE WITHIN CLASSIFICATION

1-C      CAR TRIMMER    Barge Trimmer    Car Trimmer Trimmer
1-D      SAMPLER  Coal Sampler Sampler
             Sample Grinder    Sampler, Head
1-E      BIT SHARPENER   Bit Grinder  Bit Sharpener Bit Sharpener Machine Oper.
1-F      TRUCK DRIVER,   Dump Truck OperatorRheo Operator, Truck Truck Driver, 
Supply
         SERVICE   Larryman   Supply Truck Driver Truck Driver, Over 7 Tons
              Larry Operator  Truck Driver  Truck Driver, Over 8 Tons
1-G      EQUIPMENT Car Pusher, Mine Cars at   Motor Grader Operator,
         OPERATOR,        Tipple         2nd Class
         SERVICE
1-H      PREPARATION      Beltman        Conveyor Unloader Scalp Screenman
         PLANT, UTILITY    Belt Operator, Refuse Drag Conveyorman    Screenman
         MAN  Belt Patrolman     Dry Plant Operator Helper    Shifter
              Binman, Retail     Floorman      Shipper
              Blocker       Floorman, Central Cleaning  Shipper Boom Operator


<PAGE>   152


               Boom Operator               Plant  Sample Preparer Helper
               Car Tagger   General Relief, TippleSlate Hoistman
               Carpenter Helper    Heavy Media Attendant        Slate Loader
               Chemist Helper      Heavy Media Circuit Surge Bin Operator
               Coal Cleaner  Jig Operator Helper  Tipple, All Other
               Coal Distributor     Loading Platform Operator    Tipple, Boom
Operator       
               Coal Distributor &   Picking Table Operator       Tippleman
                      Crusherman    Plant Cleaner Tippleman,Crusherman &
               Coal Treatment Man   Preparation Man              Shakerman
               Cone Operator Helper Railroad Maintenance Tipple Utilityman
               Cone Operator, 1st Helper          Trackman Truck Bins
               Cone Operator, 2nd Helper Raw Coal Operator Helper Utility Man
               Conveyor & Boom Operator  Reliefman    Washer
               Conveyorman Scaleman, Retail

1-I      SURFACE UTILITY Airdox Man   Lamphouse Day Man Supply Loader
         MAN   Bathhouse Attendant Lamphouse Night Man     Supplyman
               Block Layer  Lampman     Supplyman Top
               Filter Plant Man and Sampler Lampman Dispatcher Surface Supplyman
               Fireman     Lampman-Plumber  Surface Utility Man
               Groundman, 1st Class Lampman Watchman  Surface Yard & Supplyman
               Groundman, Tipple    Locomotive Switchman     Track Layer
               Lamp & Filterman     Outside Labor Leader Trackman
               Lamphouse Man        Portal Attendant     Water Treater
               Lamphouse & Bathhouse        Pumpman
                     Attendant      Storage Battery Charger

1-J      LABORER-  Cager  Other Able Bodied Labor    Supply Yard Leader
         UNSKILLED Car Cleaner      Railroad Maintenance,      Tipple Cleaner
               Cleanup Man          Trackman Helper     Tipple Laborer
               Floorman, Central Supply   Sand Dryer    Top Hand
               General LaborShop Helper   Top Laborer
               General Outside Labor      Slate Picker  Topman
               Janitor Statewide Basic    Vibrator Cleaner
               Laborer        Stockpile Labor     Wood Picker
               Mine Car Greaser      Supply Yard Labor  Yardman
               






APPENDIX C-ALTERNATIVE SCHEDULES

Part 1.  Alternative Schedules. The Parties recognize that greater flexibility 
at some operations may be needed to promote greater efficiency in production, 
and to increase


<PAGE>   153


Employee choice in work schedules. Accordingly, and notwithstanding the
Traditional Work Schedule set forth in Article IV of this Agreement, the Parties
have agreed to the establishment of alternative scheduling at the operations
covered by this Agreement, including underground mines, surface mines, and all
related facilities, in order to provide continuous operations seven (7) days a
week. The Employer may establish seven day continuous operations consistent with
the schedules set forth in this Appendix, provided the overall employment level
at the operation is increased and mandatory overtime is eliminated. The
provisions in this Appendix regarding the elimination of mandatory overtime and
increased employment levels are applicable only at the operations where
alternative schedules are established. The obligation to increase employment
levels shall be subject to an exception for conditions beyond the control of the
Employer, e.g., loss or cutback of coal orders, exhaustion of coal reserves,
change in geology, and other similar conditions. The determination of whether
employment levels have been increased shall be based on the employment level at
the time any alternative schedule is established; provided, however, the
Employer shall not layoff prior to implementation for the purpose of evading its
obligation to increase employment thereafter. Further provided, any layoff more
than 6 months before the date of implementation shall not be considered to be
for the purpose of evading the obligations to increase employment after
implementation. In the event of any conflict between the provisions in this
Appendix and other provisions in this Agreement, the provisions in this Appendix
shall control with respect to alternative schedules. Where an Employer
establishes alternative schedules, the following shall apply: 
(a) Weekend/Holiday Schedules. The Employer may establish weekend/holiday 
schedules for any inside and/or any outside (including outside continuous)
Employees for work on Friday or Monday, and Saturday and Sunday, and all
holidays except as provided in subpart (c) below, so long as such positions are
filled by Employees who bid for the job either from the active workforce or
from the panel. Selection and bidding procedures shall be governed by Article
XVII except the provisions of Article XVII, Section (e) concerning acceptance
or rejection of available jobs shall not apply to Employees who bid the
weekend/holiday crew from the panel. On a one-time basis, to initially
implement the weekend/holiday crew at any operation, an Employee who bids to a
weekend/holiday job that carries the same or lower straight time rate will not
have such awarded bid count as one of the two occasions under Article XVII,
Section (i)(8). Where the weekend/holiday schedule is established, the workday
for inside Employees is twelve (12) hours (on Saturday, Sunday and Holidays)
and ten (10) hours (on Friday or Monday) from portal to portal, which means
collar-to-collar or bank-to-bank, including a staggered thirty (30) minutes for
lunch, and without any intermission or suspension of operation throughout the
day. The workday for outside Employees on the weekend/holiday schedule is
twelve (12) hours (on Saturday, Sunday and Holidays) and ten (10) hours (on
Monday or Friday), including a staggered thirty (30) minutes for lunch, and
without any intermission or suspension of operation throughout the day.
Employees assigned to the weekend/holiday crew will be regularly scheduled for
twelve (12) hours per shift on Saturday, Sunday, and holidays, and will be
compensated at a premium rate for Saturday, Sunday and holiday work. The
premium rate for Saturday, Sunday, and holiday work shall be twenty (20) hours
of pay at the straight time rate for twelve (12) hours of work or
        

<PAGE>   154


the applicable pro rata number of hours based on the hours actually worked. On
Friday or Monday, Employees will be regularly scheduled for ten (10) hours per
shift and will be compensated at the straight time rate for ten (10) hours of
work. Where a weekend/holiday schedule is established, the Employer shall have
the right to operate multiple shifts with different crews. The weekend/holiday
schedule may be maintained only so long as inside Employees on the traditional
schedule under Article IV, or on the modified weekday schedule under subpart (e)
below, are scheduled for forty (40) hours per week, and outside Employees are
scheduled for at least thirty-six and a quarter (36.25) hours per week,
whichever is applicable, unless the schedule is reduced due to idle days.

(b) Overtime For Weekend/Holiday Crew. Overtime work shall be defined as any
work performed outside of the Employee's regular schedule (i.e., work in excess
of twelve (12) hours on Saturday, Sunday and holidays and in excess of ten (10)
hours on Friday or Monday). All overtime work for the weekend/holiday crew is
voluntary. For work on Saturday, Sunday, and holidays, overtime in excess of the
regular scheduled shift of twelve (12) hours shall be compensated at double the
straight time rate, with no pyramiding of overtime. For work on Friday or
Monday, overtime in excess of the regular scheduled shift of ten (10) hours
shall be compensated at one and one-half times the straight time rate, with no
pyramiding of overtime. Notwithstanding the above, if an Employee on the
weekend/holiday crew voluntarily works on a weekday outside of his regular
schedule, he shall be paid the straight time rate.

(c) Holidays For Weekend/Holiday Crew. An Employee on the weekend/holiday crew
must work all scheduled holidays set forth in Article XII, except Thanksgiving
Day, the Friday after Thanksgiving, Christmas Eve, and Christmas Day. Except for
these four (4) holidays, an Employee on the weekend/holiday crew shall not
schedule off for any other holiday referenced in Article XII by taking any
contractual day set forth in subpart (d) below, except he may use up to forty
hours of paid time off to schedule days off on two holidays without regard to
the 15% rule set forth in Part 6 below. For Employees working on the
weekend/holiday crew, the provisions of Article XII, Sections (a) Holidays
Observed, (b) Sunday Holidays, (c) Monday Holidays, (d) Pay for Holidays Worked,
(e) Pay for Holidays Not Worked, (f) Holidays During Vacation Period, and (g)
Birthday Holidays shall not apply.

(d) Paid Time Off For Weekend/Holiday Crew. Except as otherwise provided in this
Appendix, Employees assigned to the weekend/holiday crew will receive as paid
time off the hourly equivalent (based on eight (8) hours per day) of the number
of days they otherwise would have received if they were on a traditional
schedule. Employees assigned to the weekend/holiday crew will be eligible to
receive up to a maximum of 360 hours of paid time off each calendar year at the
Employee's straight time rate, of which 280 hours shall be treated as
discretionary time provided all of the conditions and rules of this subpart are
met. The 360 hours shall be the maximum annual total paid time off for regular
vacation, graduated vacation, floating vacation, personal or sick leave, and
holidays (including the birthday holiday). All rules governing the eligibility
and qualifications for, and the accrual, scheduling and taking of such days set
forth in this Agreement shall apply to Employees on the weekend/holiday crew,
except where such rules conflict with the provisions in this Appendix, in which
case the provisions of this



<PAGE>   155


Appendix shall control. Employees who are not eligible for the maximum number of
paid days off in this Agreement shall receive the number of days to which they
are eligible, converted to hours based on an 8-hour day. For example, if an
Employee is eligible for five (5) days of graduated vacation under Article
XIV(a), he shall receive a maximum of forty (40) hours of graduated vacation
under this Appendix. The 360-hour maximum (or an individual Employee's lower
maximum, where applicable) shall operate as a cap and shall not be exceeded for
any reason, unless the Employee has carried over up to 40 hours of personal or
sick leave consistent with the requirements of Article IX, Section (e), or has
carried over up to 32 hours of floating vacation for use under the Family and
Medical Leave Act of 1993, consistent with the requirements of Article XIII,
Section (e). Except where such time is carried over, once the 360-hour maximum
(or the lower individual maximum) is reached, no additional paid time off will
be provided. For Employees on the weekend/holiday crew, paid time off will be
allocated as follows: (i) For every Saturday, Sunday, or holiday taken as a paid
day off (i.e., Thanksgiving, the day after Thanksgiving, Christmas Eve and
Christmas Day), the Employee will be paid for 20 hours at the straight time
rate; (ii) for every scheduled Friday or Monday taken as a paid day off, the
Employee shall be paid for the total number of hours in his regular scheduled
shift of ten (10) hours for that day at the straight time rate, until the
maximum number of hours of paid time off for the Employee is reached. All time
off shall be subject to the 15% rule as set forth in Part 6 below with the
exception of personal or sick leave. An Employee shall have five (5) personal or
sick leave days per calendar year, however, a maximum of two (2) personal or
sick leave days may be taken on a scheduled holiday. Paid time off for Employees
on the weekend/holiday crew shall be paid at the Employee's straight time rate,
including regular scheduled overtime where applicable, but not including
premiums for Saturday, Sunday, holidays or birthday work.

(e) Modified Weekday Schedules. The Employer may establish, in conjunction with
the weekend/holiday schedule, a modified weekday schedule that provides for
shifts of ten (10) hours per day, either Monday through Thursday, or Tuesday
through Friday, at the straight time rate, provided there are minimal or no
disruptions caused by any realignment that results from the implementation of
such a schedule. In the event an Employee is not assigned to work within his
classification after the implementation of this schedule, any job openings in
that job title which may occur shall be filled by the most senior Employee
previously so classified. The modified weekday schedule may be established for
any inside and/or any outside (including outside continuous) Employees. Where
the modified weekday schedule is established, mandatory overtime will be
eliminated. Where the modified weekday schedule is established, the workday for
inside Employees is ten (10) hours from portal to portal, which means
collar-to-collar or bank-to-bank, including a staggered thirty (30) minutes for
lunch, and without any intermission or suspension of operation throughout the
day. The workday for outside Employees on the modified weekday schedule is ten
(10) hours, including a staggered thirty (30) minutes for lunch, and without any
intermission or suspension of operation throughout the day. The modified weekday
schedule of ten (10) hours per day for both inside and outside Employees shall
be paid for at the straight time rate. Where the modified weekday schedule is
established, the Employer shall have the right to operate multiple shifts with
different crews.


<PAGE>   156


(f) Overtime For Modified Weekday Crew. Overtime for any Employee assigned to
the modified weekday crew shall be paid for actual hours worked in excess of the
regular scheduled shift of ten (10) hours and for actual hours worked in excess
of forty (40) hours per week, and shall be paid at one and one-half times the
applicable straight time rate with no pyramiding of overtime. Notwithstanding
the above, an Employee assigned to the modified weekday crew who works on a
Saturday or Sunday shall be paid the premium rate of twenty (20) hours of pay at
the straight time rate for twelve (12) hours of work, or the applicable pro rata
number of hours based on the hours actually worked for all work on Saturday or
Sunday. If an Employee assigned to the modified weekday crew works a holiday,
the provisions of Article XII, Section (d) shall apply (i.e., he shall be paid
triple time). If an Employee works on a day in which a premium applies, only the
actual hours worked on that day are counted as "hours worked" for purposes of
overtime. For example, if an Employee on the modified weekday crew works twelve
(12) hours on a Saturday and gets paid for twenty (20) hours, only twelve (12)
hours are counted as "hours worked" for purposes of overtime. If an Employee on
the modified weekday crew is off for any regular scheduled work day due to a
contractually provided for regular vacation, floating vacation, graduated
vacation, personal or sick leave, bereavement, jury duty, military duty, or
holiday, that time shall be counted as "hours worked" for purposes of overtime
calculation only.

(g) Paid Time Off For Modified Weekday Crew. Except as otherwise provided in
this Appendix, Employees assigned to the modified weekday crew will receive as
paid time off the hourly equivalent (based on eight (8) hours per day) of the
number of days they would have received if they were on a traditional schedule.
Employees assigned to the modified weekday crew will be eligible to receive up
to a maximum of 360 hours of paid time off each calendar year at the Employee's
straight time rate, of which 250 hours shall be considered discretionary time
off provided all of the conditions and rules of this subpart are met. The 360
hours shall be the maximum annual total paid time off for regular vacation,
graduated vacation, floating vacation, personal or sick leave, and holidays
(including the birthday holiday). All rules governing the eligibility and
qualifications for, and the accrual, scheduling and taking of such days set
forth in this Agreement shall apply to Employees on the modified weekday crew,
except where such rules conflict with the provisions in this Appendix, in which
case the provisions in this Appendix shall control. For Employees working on the
modified weekday crew, the provisions of Article XII, Sections (b) Sunday
Holidays, and (c) Monday Holidays, shall not apply. Employees who are not
eligible for the maximum number of paid days off in this Agreement shall receive
the number of days to which they are eligible, converted to hours based on an
8-hour day. For example, if an Employee is eligible for five (5) days of
graduated vacation under Article XIV(a), he shall receive a maximum of forty
(40) hours of graduated vacation under this Appendix. The 360-hour maximum (or
an individual Employee's lower maximum where applicable) shall operate as a cap
and shall not be exceeded for any reason, unless the Employee has carried over
up to 40 hours of personal or sick leave consistent with the requirements of
Article IX, Section (e), or has carried over up to 32 hours of floating vacation
for use under the Family and Medical Leave Act of 1993, consistent with the
requirements of Article XIII, Section (e). Except where such time is carried
over, once the 360-hour maximum (or the lower individual maximum) is


<PAGE>   157


reached, no additional paid time off will be provided. For Employees on the
modified weekday crew, paid time off will be allocated as follows: For every
paid day off as provided above, the Employee shall be paid for the total number
of hours in his regular scheduled shift of ten (10) hours for that day at the
straight time rate, until the maximum number of hours of paid time off for the
Employee is reached. All time off shall be subject to the 15% rule as set forth
in Part 6 below with the exception of personal or sick leave. An Employee shall
have five (5) personal or sick leave days per calendar year. Paid time off for
Employees on the modified weekday schedule shall be paid at the Employee's
straight time rate, including regular scheduled overtime where applicable, but
not including premiums for Saturday, Sunday, holidays or birthday work.

(h) Bereavement. Notwithstanding the above, Employees working on any alternative
schedule set forth in this Part 1 shall receive up to 24 hours (up to three (3)
days off at eight (8) hours each day) of bereavement pay at the Employee's
straight time rate in the event of a death in the Employee's immediate family,
provided that the conditions set forth in Article IX(a) are satisfied.

(i) Taking Of Contractual Days. Any contractual days provided for in this
Appendix (including holidays, regular vacation, graduated vacation, floating
vacation, personal or sick leave, bereavement, military, or jury duty) shall not
be utilized for any period of less than one (1) full day on the Employee's
regular scheduled shift. For any unused hours, the Employee will be paid in lieu
at the end of the calendar year. No Employee on an alternative schedule shall be
entitled to holiday pay if he has been absent on his last scheduled day prior
to, or his first scheduled day following, the holiday because of an unauthorized
work stoppage. In the event an Employee working on any alternative schedule
established pursuant to this Appendix is absent from work and has not requested
a Personal or Sick Leave Day in advance of his absence, the Employer may pay the
Employee for that day and charge the Employee with a Personal or Sick Leave Day
if the Employee has not already exhausted such days. The Employer may charge up
to two (2) Personal or Sick Leave Days for each absence occurrence of more than
(1) consecutive day. For example, if an Employee is absent four (4) consecutive
work days, he may be charged only with two (2) such days. Personal or Sick Leave
Days may be charged against the seven (7) day waiting period under the Sickness
and Accident Program, but will not affect sickness and accident eligibility.

Part 2. Other Alternative Schedules. The Employer or the local union shall have
the right to propose other alternative schedules in addition to the schedules
established under Part 1 above, including the establishment of premium pay, if
any, for Saturday, Sunday and holiday work. Such schedules, if acceptable to the
Employer and the local union, may be implemented provided that the local union
membership ratifies the schedule, and further provided that the overall
employment level at the operation is increased and mandatory overtime is
eliminated. Any alternative schedule approved by and resulting from such
majority vote shall be final and binding on the parties. Any such vote shall not
be subject to the grievance procedure or economic self help.

Part 3. Notice Of Changes. Where the Employer establishes alternative schedules
under either Parts 1 or 2 above, the Employer has the right to change the
scheduled work day, workweek, or the starting time of any shift on thirty (30)
days notice, except in the case of an emergency or circumstances beyond the
control of the Employer, in which case reasonable notice shall apply. The
Employer also has the right to implement the traditional schedule set forth in
Article IV of this Agreement and/or any alternative schedule adopted pursuant to
the provisions of this Appendix on thirty (30) days notice except in the case of
an emergency or circumstances beyond the control of the Employer, in which case


<PAGE>   158


reasonable notice shall apply. The Employer shall have the right to establish a
traditional schedule or any combination of alternative and traditional
schedules. For example, the Employer may, in conjunction with an alternative
schedule, utilize a maintenance and/or construction crew on a traditional
schedule (Monday through Friday at eight (8) hours per day), or may schedule a
swing shift at eight (8) hours per day as referenced in Article XXI(g). After
establishing an alternative schedule pursuant to this Appendix, the Employer
shall have the right to return to the traditional schedule under Article IV or
change to any other alternative schedule provided for in this Appendix. 
Part 4. Reduction Of The Workforce. If the workforce is reduced below the base
level of employment as set forth in Part 1, the weekend/holiday schedule must be
abolished and further scheduling at the mine or facility shall then be governed
by the terms and conditions set forth in Article IV. (Traditional Work
Schedule). In the event of a reduction in force and the cessation of the
weekend/holiday schedule, any realignment shall be conducted in accordance with
Article XVII and any other applicable provision of this Agreement.
Part 5. Straight Time Rate/Shifts. The straight time rate applicable to Parts 1
and 2 above is the rate set forth in Appendix A for the appropriate job
classification. For purposes of payment of shift differentials, any Employee
working on an alternative schedule established pursuant to Parts 1 or 2 above
shall be considered to be on the shift during which the majority of his work is
performed on any given day. For purposes of overtime or premium pay under Parts
1 and 2 above, an Employee shall be considered to be working on the day of the
week in which the majority of his work is performed on his regular scheduled
shift. In addition, an Employee who begins a shift on one day may be required to
work into the next day to complete his scheduled shift.
Part 6. Scheduling Vacations. Employees working on any alternative schedule
under Parts 1 or 2 above shall have the option to schedule off for staggered
regular vacation, floating vacation days, or graduated vacation days, provided
that this will not interfere with efficient operations as determined by the
Employer and so long as not more than 15 percent of the work force on (i) the
weekend/holiday crew at an operation, or (ii) the modified weekday crew at an
operation, elects to be off on the same day. The Employer may include in the 15
percent calculation the absenteeism attributable to individuals who have left
work on workers' compensation and sickness and accident. Should there be a
conflicting choice of vacation between two or more Employees, the choice will be
determined on a seniority basis. The Employer retains the right to elect and
implement the regular vacation shutdown and staggered regular vacations. Every
Employee shall be given an opportunity to schedule his regular vacation in the
calendar year whether or not the Employer schedules a regular shutdown. To the
extent practicable, the vacation will be scheduled during the period of the
Employee's preference consistent with the 15 percent rule as set forth above.
Part 7. Changing Crews At The Face. Notwithstanding any provision to the
contrary in this Agreement regarding the elimination of mandatory overtime at
those operations with


<PAGE>   159


alternative schedules, the Employer has the right under any schedule established
under Parts 1 or 2 above to change crews at the face, including the right to
require reasonable amounts of overtime necessary to allow for changing at the
face. However, in no event will an Employee working on a Saturday, Sunday or
holiday under the weekend/holiday schedule be required to work beyond his
regular scheduled twelve (12) hour shift. Part 8. Overtime Work. Where the
Employer establishes alternative schedules under Parts 1 or 2 above, overtime
work will be offered by the Employer on an as-needed basis. An overtime roster
must be kept up-to-date and posted in each operation for the purpose of
distributing overtime on an equitable basis to the extent practicable. 
Part 9. Idle Day Work. Idle day work, as required by the Employer, will be 
scheduled on an as-needed basis under any alternative schedule established 
under Parts 1 or 2 above. Idle day work must be shared on an equitable basis 
to the extent practicable. 
Part 10. Reporting Pay. The provisions of Article IX, Section (c)
Reporting Pay, shall apply to Employees working on alternative schedules, except
as modified below. For Reporting Pay purposes, Employees on the modified weekday
crew will be paid five (5) hours at the straight time rate, and Employees on the
weekend/holiday crew will be paid five (5) hours at the straight time rate for
work on Friday or Monday, and ten (10) hours at the straight time rate for work
on Saturday, Sunday and holidays.



INDEX
Page
Absenteeism                                    253-256
Accident and Injury Reports                    44-45
Accidental Death and Dismemberment Insurance   183-185
Access to Mine
-Generally                                     5-6, 43-44
-Check-in, Check-out Procedures                43-44
-Safety Inspections                            44
Access Roads                                   251
Allowances                                     71-78
Alternative Schedules                          326-342
-Changing Crews at the Face                    341
-Modified Weekday Schedules                    332-336
-Other Alternative Schedules                   338
-Reduction of the Workforce                    339-340
-Weekend/Holiday Schedules                     327-329
Appendix A, Part I, Underground at Deep Mines  300-301 
Appendix A, Part II, Strip
and Auger Mines                                302-303 
Appendix A, Part III, Preparation Plants and 
Other Surface Facilities                       304-305 
Appendix B, Part I, Underground at Deep Mines  306-312
Appendix B, Part II, Strip and Auger Mines     313-317 
Appendix B, Part III,
Preparation Plants and Other


<PAGE>   160



Surface Facilities                             318-325
Application of Contract to Coal Lands          6
Arbitration
-Attorneys Excluded                            269
-Bonus Plans                                   259-261
-By District Arbitrators or Panel
Arbitrators Generally                          263-265
-Discharge Cases                               270-273
-Disputes Concerning New Machinery             256-257
-Disputes in Sickness and Accident Claims      84-87
-District Arbitrators                          263-265
-Employer's Classifications of Employees       63-64
-Individual Safety Rights                      46-49
-Prior Agreement                               270
-Removal of Health and Safety Committeemen     41-42
-Removal of Mine Committee                     262-263
-Safety Grievances                             55-56
-Supervisors Doing Classified Work             5
Assignees, or Successors                       1-2
Attendance Control                             253-256
Backup Mirrors, Requirements for               248
Bathhouse                                      250-251
-As Local Union Meeting Place                  259
Basic Work Day
-Inside Employees                              57
-Optional Extended Day at Surface Mines        250
-Outside Continuous Employees                  58
-Outside Employees                             57-58
Basic Work Week                                56
Benefits, Health and Retirement                139-200, 202-238
Bereavement Pay                                71
Blasting Procedures                            248
Bonus Plans
-Conditions                                    260-261
-Procedures                                    259-260
-Resolutions of Disputes                       261
-Revisions                                     260
-Termination                                   260
Brakemen, Switchmen and Tripriders             249
Bulletin Boards                                252
Burning in the Face Areas                      54-55
Cabs                                           247
Call Back                                      123-125
Changing Crews at Face                         70
Checkoff                                       87, 104-105


<PAGE>   161


Christmas Shutdown                             97-99
Classification                                 138-139
Classifications and Job Titles
-Preparation and Other Surface Facilities      318-325
-Strip and Auger Mines                         313-317
-Underground                                   306-312
Classification, Introduction of                62-63
Classification, Working Out of                 139
Classified Work
-Disputes About                                5
-Employees Exempt from the Agreement           4-5
-Grievances, On                                5
-Supervisory Employees Shall Not Perform       5
Clerks                                         4
Clothing Allowance                             51-52
Coal Associations                              1
Coal Waste Embankments
-Inspection of                                 41
-Safe Design and Maintenance                   52-53
Coal Waste, Removal of                         3
Coke and Cleaning Plants                       252
Communications Committee
(See Mine Communication Committee)
Compulsory Retirement                          252
Construction Work                              3, 8-9
Continuous Employees, Scheduling of            58
Contract
-Effective Date of                             277-278
-Integrity of                                  275-276
-Termination                                   276-277
Contracting and Subcontracting
-Mine Reclamation Work                         7
-Repair and Maintenance Work                   7
-Subcontracting                                6-7
-Transportation of Coal                        6-7
-Prior Practice and Customs                    7
-Warranty Work                                 7
Courts, Right to Resort to                     275-276
Custom and Practice, Prior                     274
Cutting, Welding, or Burning in Face Areas     54-55
Days, definition                               57-58
Dental Plan                                    202-238
-Continuation of Coverage                      222
-Orthodontic Benefits                          238
-Schedule of Benefits                          222-238


<PAGE>   162


Development of Mining Plans                    46
Disabled Miners, Benefits
-Letterholder, Right to Transfer               129
Discharge Procedure                            270-273
-Compensation for Lost Earnings                273
-Immediate Arbitration                         272
Discrimination, Prohibition Against
-For Questioning Safety of Circuits or
   Components                                  247-248
-For Exercising Rights as to Work on
   Seventh Consecutive Day                     250
-For Refusing to Rent Vehicle                  249-250
-In Awarding Jobs                              117
-On Basis of Race, Creed, Sex, Age, etc.       273
-Physical Exams                                50-51
District Agreements                            1, 275
District Arbitrators
-Duties Handling Regular Grievances            264
-Duties in Reaching Decisions                  265
-Selection                                     263-264
Doctor, In Emergency                           53
Downward Bidding                               128
Drinking Water                                 54, 249
Eating Place                                   246-247
Effective Date of Agreement                    1, 277-278
Emergency Escapeways                           53
Employees
-Rights of Shall Not Be Abridged               2-3
Employer, Definition of
-For Determining Panel Rights                  123
-Generally                                     1
Employment, Breaks in Continuous
Employment                                     80, 101-102
Enabling Clause                                1-3
Engineer and Pumper Duties                     54
Engineering and Technical Forces               4
Examination of Employees                       50-51
Exemptions Clause                              4-5
Extended Work Day                              57-58
Eye Care                                       200
Family and Medical Leave                       75-78, 99
Fatal Accident                                 256
Federal Mine Safety and Health Act of 1977,
As Amended                                     39
First Aid Kits                                 54


<PAGE>   163


First Aid Stations                             53
Foremen, Excluded from Agreement               4
Graduated Vacation                             100-104
Grievance Forms
-Standard Health and Safety Form               55
-Standard Grievance Form                       265-266
Health and Retirement Benefits                 139-202
-Advanced Premiums for Health Benefits         277
-Appointment of Trustee                        154-155
-Audits, Reports and Notices                   156-158
-Authorization for Change in Benefits          159-160
-Availability to Miners and Beneficiaries      139-142
-Certification of PPL's                        193
-Coal Industry Retiree Health Benefits Act of
   1992                                        140-141
-Contributions by Employers                    146-154
-Coordination of Benefits - Birthday Rule      189-190
-Copayments                                    197-200
-Denial or Approval of Applications            158
-Description of Plans and Trusts               142-146
-Duty to Respond to Communications             158
-Employer Obligation to Make Payment           146-154
-Employee Benefit Plans                        142-146
-Enhanced Cost Containment Program             189-200
-General Description, Health and
   Retirement Benefits                         161-202
-General Purpose                               139-142
-Generic Drug Substitution                     190
-Health Care Payment/Deductible                190-193
-Health Services Card                          164, 174-176, 189
-Hours for Which Employer Contributes          151
-Insurance Carriers                            144
-Life Insurance                                183-185
-National Health Care, Reopener                202
-Notice to Union of Payments Made              153
-Participating Provider Lists (PPL)            193-197
-Precertification                              196-197
-Quarterly Listing of Current Beneficiaries    159
-Responsibilities and Duties of Trustee        154-156
-When Fund Contributions Are Due               151
Health and Safety                              38-56
Health and Safety Committee
(See Mine Health and Safety Committee)
Health Care Cost Containment                   200-201
Health or Safety Grievances                    55-56


<PAGE>   164


Helpers
-For Drillers and Shooters                     246
-Underground                                   64-66
-Assignment of                                 64-65
-Fully Trained Helpers                         66
-Trainee                                       65
Hoisting Facilities                            53
Hoisting of Coal                               67
Holidays
-Birthday Holidays                             90-91
-Holidays Observed                             87-89
-Holidays for Sick and Injured                 91
-Holidays During Vacation Periods              90
-Monday Holidays                               89
-Pay for Holidays Not Worked                   90
-Sunday Holidays                               89
-Time of Payment                               91
Hours of Work                                  56-58
House Coal                                     252
House Rent                                     252
Idle Day Work                                  62
Incentives (See Bonus Plans)
Individual Safety Rights                       46-49
Inexperienced Employees
-Surface Mines, Work Assignments               247
-Underground, Work Assignments                 115
-Working Experience Requirements               115, 247
Injured or Sick Employees, Removal of          53-54
Insurance Carriers                             144
Integrity of Contract                          275-276
Intercom Units, Requirements for               248
Irregular Work                                 254-255
Job Bidding                                    125-130
-Letterholder                                  129
Job Opportunity and Benefit Security (JOBS)
-Employment Obligations Under the JOBS
   Program, Coordination of                    17-18
-Employee-Wide Panel Rights to
   Signatory Operations                        18
-Employer Notice of Job Openings               10
-Exhaustion of Employer Panel                  18
-Lessee-Licensee                               13-17
-Monitoring of Job Selection                   18-21
-Non-Signatory Operations                      10-13
-Notification of Employee Interest             10-12


<PAGE>   165


-Skills Training                               24-26
-UMWA-BCOA Training and Education Fund         21-24
Job Rates
-At Preparation Plants, and Other
   Surface Facilities                          304-305
-At Strip and Auger Mines                      302-303
-At Underground Mines                          300-301
Job Titles                                     63-64
Joint Industry Health and Safety Committee     39-40
-Appointment of                                39-40
-Duties of                                     39-40
-Makeup of Committee                           39-40
Joint Industry Training Committee              105-106
Jurisdiction                                   3-4
Jury Duty                                      71
Labor Management Policy Committee              36-38
Labor Management Positive Change Process       26-36
-Committees                                    29
-Contributions                                 31-33
-Fund                                          29-30
-Fund Administration                           30-31
-Grants                                        33-35
Lateral and Downward Bidding                   128
Layoff                                         121-122
Leasing Employee Vehicles                      249-250
Leasing, Subleasing and Licensing Out of Coal 
Lands                                          8
Leave of Absence                               132-133
Letterholder, Right to Transfer                129
Lifting Weight, Limitations on                 54
Light Duty                                     80-81
Loading Coal, Sunday, Holidays and
Vacations                                      59-62, 100
Lowering Employees                             70
Lunch                                          57-58, 258
Maintenance of Equipment                       52-53
Maintenance Training and Rates of Pay          113-115
Management of the Mines                        2-3, 5
Mantrips                                       54
Mediation, Letter of                           279
Medical Insurance                              187-189
Meeting Places, Local Union                    259
Memorandum of Understanding on Job
Opportunities                                  281-291
Memorial Periods                               256
Military Duty                                  72


<PAGE>   166



Mine Committee
-Duties of                                     261-262
-Duty of Employer to Meet with on Layoffs      121
-In Second Stage of Grievance                  265-266
-Makeup of Committee                           261-262
-No Discharge or Suspension for
   Official Actions                            262-263
-Removal of Committee Members                  262-263
Mine Communication Committee                   68-69
Mine Health and Safety Committee
-Coverage by Workers' Compensation Law         40
-Declarations of Imminent Danger by            41
-Experience Requirement                        40
-Individual Withdrawals                        46-49
-Inspections by                                41
-Investigating Explosions and/or Disasters     44
-Makeup of Committee                           40
-No Discharge or Suspension for Official
   Actions                                     42
-Payments by Employer                          40-41
-Qualifications                                39-40
-Recommendation to Remove Employees            41
-Removal of Committee Members                  41-42
-Reports                                       44-45
-Right to Transportation                       41
-Safety Meetings with Management               42
-Training                                      40-41
-Transportation of                             41
Minimum Age for Work in Coal Mines             51
Mining of Coal on Sundays and Holidays         59-62
Mining Plans, Union Right to Review and
Comment                                        46
Multiple Shifts                                66-67
New Districts of UMWA                          273
New Machinery, Introduction of                 256-257
Nurse, In Emergency                            53
Opportunity for Six Days Work                  60
Orientation for New Employees                  106-110
Overburden, Removal of                         3
Overtime
-After Basic Work Day                          57-58, 250
-Call-back Within 24 Hours                     68
-Included in Graduated Vacation Rates          103
-Included in Holiday Rates                     90
-Included in Other Benefits and Allowances     71-74


<PAGE>   167


-Included in Regular Vacation Rates            94-95, 99
-No Pyramiding of                              57-58
-On Sunday                                     60-62
-Roster                                        61-62
-Sharing of                                    60-61
Panels
-Mine                                          122
-Mines Outside District                        124
-Mines Within District                         124
Panel Custodians                               122-123
Panel Arbitrator
-Selection                                     263-265
-Service as District Arbitrator                263-265
Parking Facilities
-Generally                                     251
-Surface Mine                                  243-244
Pay Day                                        257-258
Pension Tables                                 295-299
Pensioners
-Death Benefits                                185-187
-Health Care                                   187-200
-Vision Care                                   200
Pensions                                       139-187
-Amount                                        163-183
-Credit for Hours Worked                       170-172
-Deferred Vested                               178-183
-Disability                                    174-175
-For Surviving Spouse                          175-177
-Plan and Trust Documents                      161-163
-Pre-Retirement Survivors                      177-178
-Signatory Service                             172-174
-Special Rule for 1993                         173-174
Personal or Sick Leave                         72-75
Physical Examination of Employees              50-51
Portals, Designation of                        258
Premium Pay
-Included in Certain Benefits and Allowances   71-78
-Saturday, Sunday and Holidays
   Worked                                      59-62
Preparation, Production, Processing and 
Cleaning of Coal, UMWA Jurisdiction            3-4
Pre-Retirement Survivors Pension               177-178
Prescription Drugs                             187-200
Prior Practice and Custom                      7, 274
Production and Processing of Coal on Sundays


<PAGE>   168


and Holidays                                   59-62, 250
Protective Clothing Allowance                  51-52
Protective Wage Clause                         53-54
Pumper, Duty to Work                           54
Ratification and Termination of Agreement      277-278
Realignment in Work Force                      117-121
Recall                                         123-125
Reclamation Work                               7
Reduction in Work Force                        117-118
Regular Vacation
-Dates of Regular Vacation                     92-93
-Entitlement to Partial (Pro Rata) Vacation    96
-Floating Vacation Days                        96-99
-Obligation for Payment                        99-100
-Pay for Sick and Injured Employees            96
-Qualifying Period and Amount of Payment       94-96
-Rate of Payment                               95-96
-Staggered Vacation                            93-94
-Time of Payment                               99
-Work During Vacation Shutdowns                100
Reimbursement of Copayment                     199-200
Removal of Sick or Injured Employees           53-54
Removal of Overburden, by Classified Employees 3
Repair and Maintenance Work                    3
Reporting Pay                                  71-72
Reports, Accidents, Injuries, Inspections, etc 44-45
Retirement Tables                              295-299
Right to Withdraw from Unsafe Area             46-49
Roads
-Access                                        251
-Haulage                                       249
Safe Working Place, Right to                   38
Safety Committee
(See Mine Health and Safety Committee)
Safety Division, UMWA
-Access to Coal Mines                          5-6, 43-44
-Review of Mining Plans                        46
-Review of Safety Rules and Regulations        45
-Role in Individual Safety Rights              46-49
-Role in Safety Grievance Procedure            48-49
Safety Equipment and Protective Clothing
Allowance                                      51-52
Safety Grievances                              48-49
Safety Rights of Individuals                   46-47
Safety Rules and Regulations                   45


<PAGE>   169


Saturday Work                                  59-62
Scope and Coverage                             3-9
Selling Coal Mines
-Duty to Have Buyer Execute UMWA Contract      1-2
-Right of Union to Seek Direct Judicial Relief 276
Seniority
-Accrual of Seniority While on Panel           123
-Biding for Jobs on Continuous Miners or
   Roof Bolters                                129-130
-Definition of                                 117
-District Panel                                121-122, 124-125
-Job Bidding Procedure
-Consideration of Panel Members                126
-Experience Gained During Posting
   and Selection Period                        127
-Notification of Vacancies to
   Absent Employees                            127
-Proper Identification of Jobs                 125-126
-Proper Posting Period                         125-126
-Withdrawal of Bid by Senior Bidder            127-128
-Lateral and Downward Bidding                  128
-Layoff Procedure                              121-122
-Leave of Absence                              132-133
-Loss of Panel Rights                          133
-Mine Panels                                   122
-Panel Custodians                              122-123
-Panel Rights Outside of District              124-125
-Permanent and Temporary Supervisors           133
-Realignment in Work Force                     117-121
-Reduction in Work Force                       117-118
-Revision of Panel Form                        18, 122
-Right to be Recalled from Panels              123
-Rights of Letterholders to Transfer           129
-Shift Preference                              133
-Standardized Layoff Form - Duty
   to Fill Out                                 121-122
-Training for Vacancies Not Filled by Bidding  130
-Transfer to Other Mines of Employer           130-132
Settlement of Disputes
-Appeal to District Arbitrator                 266-267
-Arising Under 1978 Agreement                  270
-Briefs (Post-Hearing)                         267-268
-District Arbitrators                          263-265
-Exclusion of Legal Counsel                    269
-Finality of Decision or Settlement            269


<PAGE>   170


-Grievance Procedure                           265-268
-No Precedent at Step One                      265
-Right of Grievant to be Present               269
-Right to Presence of District
   Representative                              271
-Right to Presence of Member of Mine
   Committee                                   269
-Safety Grievance Procedure                    55-56
-Standard Grievance Form                       265-266
-Ten Day Limitation on Filing                  268
-Waiver of Time Limits                         270
Settlement of Safety or Health Disputes        55-56
Severability Clause                            276
Seventh Consecutive Day, Work On               60, 250
Shift Differentials                            67
Shift Preference                               133
Shift Rotation                                 68
Shift Starting Time                            69
Sick and Injured Employees, Benefits for
-Fund Benefits for Disabled Miners,
   Widows, etc                                 174-200
-Graduated Vacation Benefits                   104
-Holiday Pay                                   91
-Personal and Sick Leave                       72-75
-Regular Vacation Benefits                     96
-Removal of                                    53-54
-Sickness and Accident Benefits                79-87
Sick or Personal Leave                         72-75
Sickness and Accident Benefits
-Amount and Payment of Benefits                83
-Deductions                                    83
-Eligibility                                   79-81
-Filing of                                     84
-General Purpose                               79
-Right of Employee to Carry Additional
   Insurance                                   87
-Structure and Administration                  84-87
-When Benefits Begin and End                   81-82
Six Days Work, Opportunity for                 60
Special Safety Problem Areas
-Underground                                   53-55
-Surface                                       247-249
Standard Daily Wage Rate                       62-64
Standard Hourly Wage Rates                     300-305
Starting Time                                  69


<PAGE>   171


Straight Time Earnings, Definition of
-Inside Employees                              57
-Lampman                                       59
-Outside Employees                             57-58
Subcontracting                                 3, 6-7
Subleasing                                     3, 8, 13-17
Successors or Assignees                        1-2
Sunday Work                                    59-62, 250
Supervisors, Performance of Classified Work           5
Supervisors, Temporary and Permanent           133
Supervisory and Other Employees,
Exempted from the Agreement                    4-5
Surface Mines
-Cabs                                          247
-Duty of Employer to Provide Transportation    243-244
-Eating Place                                  246-247
-Inexperienced Employees, Work Assignments     247
-Leasing of Employees' Vehicles                249-250
-Manning of Surface Mining Equipment           244-246
-Mining and Loading Coal, Eight Hours
   or on Sunday                                250
-Parking Areas                                 243-244
-Special Health and Safety Problems            247-249
-Swing Shifts                                  249
-Toilets                                       249
Temporary Assignments
-Generally                                     138-139
-Preference to Senior Employee                 138-139
Termination of Agreement                       277-278
Toilets                                        249
Tonnage Rates and Hand Loading                 133-137
Tools, Employer's Duty to Furnish              258
Truck Crossings, Safeguards                    249
Training
-Evaluation of Employees During
   Training                                    116
-General Retraining Programs                   110-113
-Inexperienced Employees                       115
-Job Rights of Trainee on Completing
   Training                                    114-115
-Joint Industry Training Committee             105-106
-Orientation for New Employees                 106-110
-Safety Training for a Specific Job            113
-Skills                                        24-26
-Skills Enhancement Program                    116-117


<PAGE>   172


-Training for Maintenance Jobs
   (Mechanics, Welders and Electricians)       113-115
-UMWA-BCOA Fund                                21-24
Trainability, Definition of                    116
Tramming, Rates                                259
Transfer to Other Mines of Employer            130-132 
Transfer of Coal                               3 
Transportation of Surface Mines                243-244 
Union Rights 
-Access to Mine Property                       5-6, 43-44
-Campaigning by Union Candidates               5-6 
-Holding Union Elections on Mine Property      5-6 
-Ratification of Agreements                    5-6, 277-278 
UMWA 
-As Exclusive Bargaining Agent                 2-3 
-Membership as Condition of Employment         2-3 
UMWA Cash Deferred Savings Plan of 1988 
-Administration                                239-242 
-Funding                                       239 
-General Purpose                               238
-Implementation                                243 
-Investments                                   242-243 
-Plan                                          239 
-Trust                                         238 
Vacations
-Christmas Shutdown                            97-98 
-Floating                                      96-99 
-Graduated                                     100-104 
-Regular                                       92-93
-Staggered                                     93-94 
Vision Care                                    200 
Wages and Hours                                56-64, 250 
Wage Increase                                  78-79
Watchmen                                       4 
Weigh Bosses                                   4 
Weight Limitations on Amount to be Lifted      54 
Welding in Face Areas                          54-55 
Withdrawal, Individual                         46-49 
Work Day, (See Basic Work Day)
Work Jurisdiction 
-Gob Piles, Maintenance of                     3 
-Preparation, Production, Processing and
 Cleaning of Coal                              3
-Reclamation                                   7
-Repair and Maintenance Work                   3


<PAGE>   173


-Removal of Coal Waste                         3
-Removal of Overburden                         3
-Transportation of Coal                        3
Work Week                                      56
Working Out of Classification                  138
Workers' Compensation and Occupational
Disease Coverage                               51
This index is for reference purposes only and does not add nor subtract from the
specific terms of the Agreement