Document:

Exhibit 10.19

Exhibit 10.19

This document prepared by and

after recording return to:

Edmund S. Pittman, Esquire

McGuireWoods LLP

One James Center

901 East Cary Street

Richmond, Virginia 23219

Tax Parcel Nos.: Part of 019119, 019142, Part of 019178, 019215, 019238, 019239, 019241, 019242,
019244, Part of 019250, Part of 019253, Part of 019254, Part of 019179, Part of 019213, 019575,
008196, 008197, 008198, 008199, 008200, Part of 040245, Part of 040217, 038344, 009576, 007722,
038551, Part of 032869, Part of 034595, 032868, 032866, 032867, 034697 & 040575

AMENDED AND RESTATED AGREEMENT

THIS AMENDED AND RESTATED AGREEMENT (this “Agreement”) is entered into as of this 13th day of
January, 2009 (the “Effective Date”), by and among ACIN LLC, a Delaware limited liability company
(“ACIN”), with an address of 5260 Irwin Road, Huntington, West Virginia 25705; ALPHA LAND AND
RESERVES, LLC, a Delaware limited liability company (“Alpha”), with an address of P.O. Box 2345,
Abingdon, Virginia 24212; PARAMONT COAL COMPANY VIRGINIA, LLC, a Delaware limited liability company
(“Paramont”), with an address of P.O. Box 2345, Abingdon, Virginia 24212; and VIRGINIA ELECTRIC AND
POWER COMPANY, a Virginia public service corporation (“Virginia Power”), with an address of 5000
Dominion Boulevard, Glen Allen, Virginia 23060.

RECITALS:

A. ACIN, Virginia Power and Alpha entered into an Agreement dated as of February 17, 2006, a
copy of which is attached hereto as Schedule I and made a part hereof (the “Existing
Agreement”), pursuant to which ACIN and Alpha agreed to certain restrictions on coal mining
activities on certain property owned by ACIN and located in Wise County, Virginia and more
particularly identified in the Existing Agreement.

B. Virginia Power has now acquired the property affected by the Existing Agreement from ACIN
and acquired additional property from other third parties, all of which is more particularly shown
on Exhibit A attached hereto and made a part hereof (the property that Virginia Power has
now acquired from ACIN and other third parties shall be collectively referred to as the
“Property”).

C. At the request of Virginia Power, ACIN, Alpha and Paramont, as a sublessee of a portion of
Alpha’s rights under the Alpha Lease (as hereinafter defined), have agreed to amend and restate the
Existing Agreement in its entirety as hereinafter set forth, and to restrict coal mining activities
and oil and gas exploration and development activities on the Property.

 

 

 

NOW, THEREFORE, for and in consideration of ten dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
covenant and agree as follows:

1. Ownership of Mineral and Mining Rights. ACIN represents and warrants to Virginia
Power that it is the sole owner of all of the coal and coal mining rights with respect to the
Property. With the exception of the recorded and unrecorded leases identified on Exhibit B
attached hereto and made a part hereof, ACIN further represents and warrants to Virginia Power that
it has not assigned, leased or otherwise transferred its rights to and interests in the coal and
coal mining rights with respect to the Property to any third party.

2. Alpha Lease. Alpha represents and warrants to Virginia Power that, except for a
sublease by Alpha to Paramont of a portion of Alpha’s rights under the Alpha Lease, Alpha has not
assigned, subleased or otherwise transferred its rights under the Alpha Lease (as defined on
Exhibit B attached hereto) with respect to the Property to any third party.

3. Equitable Lease. ACIN represents and warrants to Virginia Power that, pursuant to
the terms of the Equitable Lease (as defined on Exhibit B attached hereto), the tenant
thereunder must obtain the approval of ACIN in order to conduct any mining activities beneath that
portion of the Property subject to the Equitable Lease and in order to locate any structures or
equipment anywhere on the surface of that portion of the Property subject to the Equitable Lease.
Since the date of the Existing Agreement, ACIN represents and warrants to Virginia Power that no
such approvals have been granted to the tenant under the Equitable Lease. From and after the
Effective Date, ACIN covenants and agrees not to grant any such approvals sought by the tenant
under the Equitable Lease without the prior written consent of Virginia Power, which consent
Virginia Power may grant or withhold in its sole and absolute discretion.

4. Restrictions on Mining Activities and Surface and Subsurface Rights on Property.

(a) ACIN, Alpha and Paramont each covenant and agree that they will not perform surface mining
on or remove additional coal from any portion of the Property. Notwithstanding the foregoing,
however, Virginia Power acknowledges and agrees that Alpha shall have the right to conduct first
mining activities in the previously unmined portion of the Jawbone seam that is located: (i) to the
north of the Paramont #3 Mine; and (ii) within the boundaries of the Property, which portion of the
Property is identified as “FIRST MINING ONLY PERMITTED IN THIS AREA” on the plat attached hereto as
Exhibit C and made a part hereof. For purposes of this Agreement, first mining activities
shall mean removal of 50% or less of the coal in a manner that leaves coal pillar support.

(b) ACIN, Alpha and Paramont each hereby waive all of their rights to use the subsurface
beneath that portion of the Property identified as “POWER PLANT & SOLID WASTE MANAGEMENT FACILITY
BOUNDARY” on the plat attached hereto as
Exhibit C and made a part hereof, including, without limitation, any existing mine
works beneath the surface of that portion of the Property. Virginia Power acknowledges and agrees
that, with the exception of the portion of the Property identified as “POWER PLANT & SOLID WASTE
MANAGEMENT FACILITY BOUNDARY” on the plat attached hereto as Exhibit C and made a part
hereof, Alpha may continue to use the existing mine works beneath the Property for mining
operations other than the removal of coal, including, but not limited to, ventilation, drainage and
transportation of personnel, supplies and coal, and rehabilitation work.

 

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(c) ACIN, Alpha and Paramont each hereby waive all of their rights to use any portion of the
surface of that portion of the Property identified as “POWER PLANT & SOLID WASTE MANAGEMENT
FACILITY BOUNDARY” on the plat attached hereto as Exhibit C and made a part hereof.
Notwithstanding the foregoing, however, Alpha shall retain the right to cross over and upon the
surface of that portion of the Property identified as “POWER PLANT & SOLID WASTE MANAGEMENT
FACILITY BOUNDARY” on the plat attached hereto as Exhibit C and made a part hereof for (i)
the purpose of accessing, maintaining and removing (including performing any required reclamation
work associated therewith) any permitted roads and dewatering pumps located on such portion of the
Property as of the Effective Date and (ii) the purpose of accessing Alpha’s mining operations on
other properties in the vicinity of the Property and the transportation of equipment, personnel,
supplies and coal to and from other properties.

(d) Alpha and Paramont otherwise agree, in connection with the exercise of their leasehold and
subleasehold rights, not to unreasonably interfere with the construction and operation of an
electric power generation facility on the Property (the “Generation Facility”).

(e) Virginia Power covenants and agrees that any easements, licenses or other use agreements
granting third parties the right to use any portion of the surface or subsurface of the Property
shall be subject to all of the reserved rights of Alpha to use the surface and subsurface of the
Property expressly set forth in this Paragraph 4.

5. Grout Stabilization. In connection with Virginia Power’s construction and
operation of the solid waste management facility required to support the operation of the
Generation Facility (the “Solid Waste Management Facility”) within that portion of the Property
identified as “POWER PLANT & SOLID WASTE MANAGEMENT FACILITY BOUNDARY” on the plat attached hereto
as Exhibit C and made a part hereof, Virginia Power has determined that it will be
necessary for Virginia Power to stabilize that portion of the existing mine works beneath such
portion of the Property and identified as “GROUT STABILIZATION AREA JAWBONE SEAM” on the plat
attached hereto as Exhibit C and made a part hereof by injecting grout into such portion of
the existing mine works (collectively, the “Stabilization Work”). Alpha and/or Paramont hereby
consent to the performance of the Stabilization Work and agrees to provide access to the effected
portions of the existing mine works to Virginia Power and
its contractors for the sole purpose of performing the Stabilization Work. All Stabilization Work
shall be performed at Virginia Power’s sole cost and expense.

 

3

 

6. Oil and Gas Exploration and Development. Notwithstanding anything contained in
this Agreement to the contrary, ACIN and its lessees shall each have the right to explore for and
develop oil, gas and coal bed methane gas beneath the Property, provided that, prior to commencing
any such activities, ACIN and/or its lessees shall submit detailed plans and specifications setting
forth the scope of such activities to Virginia Power for Virginia Power’s review and approval,
which approval may be granted or withheld in Virginia Power’s sole and absolute discretion.

7. Waiver of Lost Coal Claims. ACIN recognizes that the limitations placed upon
Alpha’s and Paramont’s mining operations in the Existing Agreement and in Paragraph 4 above do not
permit recovery of all mineable coal under the Property or in areas adjacent to or accessed through
the Property. Accordingly, ACIN covenants and agrees not to assert a lost coal claim for: (1) any
area in which mining has been restricted under the Existing Agreement, (2) any area that could not
be accessed because of the restrictions imposed under the Existing Agreement, (3) any area in which
mining has been restricted under Paragraph 4 above or (4) any area that cannot be accessed because
of the restrictions imposed under Paragraph 4.

8. Release by Virginia Power. Virginia Power hereby releases ACIN, Alpha, Paramont
and their respective affiliates from liability for subsidence on the Property resulting from mining
activities prior to the date of the Existing Agreement and for subsidence on the Property resulting
from the mining activities permitted pursuant to the Existing Agreement and Paragraph 4 above.

9. Information Relating to Mining on the Property. Virginia Power acknowledges that
ACIN and Alpha have provided to Virginia Power: (i) all documentation they have of undermined areas
on the Property, (ii) all information they have on geotechnical testing with respect to the
Property, and (iii) all drilling information they have with respect to the Property. Within ten
(10) days following the commencement of any first mining activities on the Property that occur
after the date hereof in the area permitted pursuant to Paragraph 4 above, Alpha further covenants
and agrees to provide Virginia Power with maps showing the areas in which such first mining
activities are being conducted, and, thereafter, if the areas in which such first mining activities
are being conducted change, Alpha further covenants and agrees to promptly provide updated maps to
Virginia Power showing any such changes.

10. Successors and Assigns. This Agreement shall be binding upon the parties hereto
and each of their respective successors and assigns. In the event a party hereto desires to assign
its rights and obligations under this Agreement to a third party, such party shall provide written
notice of such assignment to the other parties hereto at least ten (10) days in advance of such
assignment.

 

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11. Covenants Running with the Land and Mineral Rights. The parties hereto each
covenant and agree that the covenants, conditions and restrictions and all
other terms of this Agreement shall be binding upon and inure to the benefit of their
respective successors, successors-in-title and assigns and all other persons or entities having or
hereafter acquiring any right, title or interest in the Property or the mineral and mining rights
with respect to the Property, and all other persons and entities claiming by, through or under
Virginia Power, ACIN, Alpha or Paramont and each of their respective successors,
successors-in-title and assigns.

12. Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

13. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Virginia.

14. Existing Agreement. The parties hereto acknowledge and agree that this Agreement
amends and restates and, therefore, supersedes the Existing Agreement in its entirety.

[SIGNATURE PAGES ATTACHED]

 

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IN WITNESS WHEREOF, each of the parties hereto have caused this Agreement to be executed by
their duly authorized representatives as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	 	 	ACIN LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	NRP (Operating) LLC,

a Delaware limited liability company	 	 
	 	 	Its:	 	Sole Operating Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

STATE OF _______________________

CITY/COUNTY OF ________________

The
 foregoing instrument was acknowledged before me on this
 _____ 
day of January, 2009, by

 ___________,
 ____________ 
of NRP (Operating) LLC, a Delaware limited liability
company and the sole operating manager of ACIN LLC, on behalf of ACIN LLC, a Delaware limited
liability company.

My commission expires:
 ___________ 

Notarial Registration Number:
 ____________ 

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

[SEAL]

 

6

 

	 	 	 	 	 
	 	ALPHA LAND AND RESERVES, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Paul A. Mullins 	 
	 	 	Vice President 	 
	 

STATE OF ___________________________

CITY/COUNTY OF ____________________

The foregoing instrument was acknowledged before me on this
 _____ 
day of January, 2009, by Paul
A. Mullins, Vice President of ALPHA LAND AND RESERVES, LLC, a Delaware limited liability company,
on behalf of the company.

My commission expires:
 ___________ 

Notarial Registration Number:
 ___________ 

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

[SEAL]

 

7

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	PARAMONT COAL COMPANY VIRGINIA,
LLC, a Delaware limited liability company

 	 
	 	By:  	

 	 
	 	 	Stanley E. Bateman, Jr. 	 
	 	 	President and Manager 	 
	 

STATE OF __________________________

CITY/COUNTY OF ___________________

The foregoing instrument was acknowledged before me on this
 _____ 
day of January, 2009, by
Stanley E. Bateman, Jr., President and Manager of PARAMONT COAL COMPANY OF VIRGINIA, LLC, a
Delaware limited liability company, on behalf of the company.

My commission expires:
 ___________ 

Notarial Registration Number:
 ___________ 

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

[SEAL]

 

8

 

	 	 	 	 	 	 	 	 	 
	 	 	VIRGINIA ELECTRIC AND POWER 

COMPANY,
a Virginia public service corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF ___________________

The foregoing instrument was acknowledged before me on this
 _____ 
day of January, 2009, by

 _________,
 _________ 
of VIRGINIA ELECTRIC AND POWER COMPANY, a Virginia public
service corporation, on behalf of such corporation.

My commission expires:
 ____________ 

Notarial Registration Number:
 ____________ 

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

[SEAL]

 

9

 

SHEDULE I

COPY OF EXISTING AGREEMENT

SEE ATTACHED

 

10

 

EXHIBIT A

Plat Depicting Property

SEE ATTACHED

 

11

 

EXHIBIT B

List of Existing Mineral and Mining Leases

ACIN:

	1.	 	Coal Mining Lease with Alpha Land and Reserves, LLC, dated April 9, 2003, effective April 1,
2003 (the “Alpha Lease”)

	2.	 	Amended and Restated Oil and Gas and Coal Seam Gas Lease with Equitable Production Company
dated April 23, 2002 (the “Equitable Lease”)

 

12

 

EXHIBIT C

Plat

SEE ATTACHED

 

13Exhibit 10.28

EXHIBIT 10.28

ALPHA NATURAL RESOURCES, INC.

2008 ANNUAL INCENTIVE BONUS PLAN

Effective as of May 14, 2008 and Amended on November 18, 2009

1. Purpose of the Plan

The purpose of the Alpha Natural Resources, Inc. 2008 Annual Incentive Bonus Plan (the “Plan”)
is to advance the interests of the Company and its shareholders by providing incentives to key
employees with significant responsibility for achieving performance goals critical to the success
and growth of the Company. The Plan is designed to: (i) promote the attainment of the Company’s
significant business objectives; (ii) encourage and reward management teamwork across the entire
Company; and (iii) assist in the attraction and retention of employees vital to the Company’s
long-term success.

2. Definitions

For the purpose of the Plan, the following definitions shall apply:

(a) “Alpha” means Alpha Natural Resources, Inc. (or any successor thereto).

(b) “Board” means the Board of Directors of Alpha.

(c) “Cause” means “Employer Cause” as set forth in any employment agreement between the
Participant and the Company or, in the absence of such an agreement, “Cause” as defined by
the Company’s plans applicable to the Participant or employment policies in effect at the
time of the Participant’s Separation from Service and/or a violation of the Company’s Code
of Business Ethics.

(d) “Change of Control” means (A) any merger, consolidation or business combination in
which the stockholders of Alpha immediately prior to the merger, consolidation or business
combination do not own at least a majority of the outstanding equity interests of the
surviving parent entity, (B) the sale of all or substantially all of the Company’s assets
in a single transaction or a series of related transactions, (C) the acquisition of
beneficial ownership or control of (including, without limitation, power to vote) a
majority of the outstanding common stock of Alpha by any person or entity (including a
“group” as defined by or under Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended), (D) the stockholders of Alpha approve any plan for the dissolution or liquidation
of Alpha, or (E) a contested election of directors, as a result of which or in connection with which the persons who were directors of Alpha before such election or
their nominees cease to constitute a majority of the Board.

 

 

 

(e) “Code” means the Internal Revenue Code of 1986, as amended, including any successor law
thereto.

(f) “Committee” means the Compensation Committee of the Board, or such other committee as
is appointed or designated by the Board to administer the Plan, in each case which shall be
comprised solely of two or more “outside directors” (as defined under Section 162(m) of the
Code and the regulations promulgated thereunder).

(g) “Company” means Alpha and any subsidiary entity or affiliate thereof, including
subsidiaries or affiliates which become such after adoption of the Plan.

(h) “Forfeit,” “Forfeiture,” “Forfeited” means the loss by a Participant of any and all
rights to an award granted under the Plan, including the loss to any payment of
compensation by the Company under the Plan or any award granted thereunder.

(i) “Participant” means any person: (1) who satisfies the eligibility requirements set
forth in Paragraph 4; (2) to whom an award has been made by the Committee; and (3) whose
award remains outstanding under the Plan.

(j) “Performance Goal” means, in relation to any Performance Period, the level of
performance that must be achieved with respect to a Performance Measure.

(k) “Performance Measures” means any one or more of the following performance criteria,
either individually, alternatively or in any combination, and subject to such modifications
or variations as specified by the Committee, applied to either the Company as a whole or to
a business unit or subsidiary entity thereof, either individually, alternatively or in any
combination, and measured over a period of time including any portion of a year, annually
or cumulatively over a period of years, on an absolute basis or relative to a
pre-established target, to previous years’ results or to a designated comparison group, in
each case as specified by the Committee: cash flow; cash flow from operations; earnings
(including, but not limited to, earnings before interest, taxes, depreciation, and
amortization or some variation thereof); earnings per share, diluted or basic; earnings per
share from continuing operations; net asset turnover; inventory turnover; capital
expenditures; debt; debt reduction; working capital; return on investment; return on sales;
net or gross sales; market share; economic value added; cost of capital; change in assets;
expense reduction levels; productivity; delivery performance; safety record and/or
performance; stock price; return on equity; total or relative increases to stockholder
return; return on invested capital; return on assets or net assets; revenue; income or net
income; operating income or

 

2

 

net operating income; operating profit or net operating profit; gross margin, operating
margin or profit margin; and completion of acquisitions, business expansion, product
diversification, new or expanded market penetration and other non-financial operating and
management performance objectives.

To the extent consistent with Section 162(m) of the Code and the regulations
promulgated thereunder, the Committee may determine that certain adjustments shall apply,
in whole or in part, in such manner as specified by the Committee, to exclude the effect of
any of the following events that occur during a Performance Period: the impairment of
tangible or intangible assets; litigation or claim judgments or settlements; changes in tax
law, accounting principles or other such laws or provisions affecting reported results;
business combinations, reorganizations and/or restructuring programs, including but not
limited to reductions in force and early retirement incentives; currency fluctuations; and
any extraordinary, unusual, infrequent or non-recurring items, including, but not limited
to, such items described in management’s discussion and analysis of financial condition and
results of operations or the financial statements and/or notes thereto appearing in the
Company’s annual report for the applicable period.

(l) “Performance Period” means, in relation to any award, the calendar year or other fiscal
period within a calendar year of less than 12 months for which a Participant’s performance
is being calculated, with each such period constituting a separate Performance Period.

(m) “Section 409A” shall mean Section 409A of the Code, the regulations and other binding
guidance promulgated thereunder.

(n) “Separation from Service” or “Separates from Service” shall mean the Participant’s
death, retirement or other termination of employment or service with the employer
(including all persons treated as a single employer under Sections 414(b) and 414(c)). For
purposes hereof, the determination of controlled group members shall be made pursuant to
the provisions of Sections 414(b) and 414(c); provided that the language “at least 50
percent” shall be used instead of “at least 80 percent” in each place that it appears in
Section 1563(a)(1), (2) and (3) and Treas. Reg. Section 1.414(c)-2; provided, further,
where legitimate business reasons exist (within the meaning of Treas. Reg. Section
1.409A-1(h)(3)), the language “at least 20 percent” shall be used instead of “at least 80
percent” in each place it appears. Whether a Participant has experienced a Separation from
Service will be determined based on all of the facts and circumstances in accordance with
the guidance issued under Section 409A and, to the extent not inconsistent therewith, the
terms of the Plan.

(o) “Retirement” shall mean (1) the date a Participant reaches the age of 62 with ten (10)
Years of Service, (2) the date the Participant reaches the age of 65 or (3) a combination
of age and Years of Service which equals 80 (for example, a Participant who reaches the age
of 50 with thirty (30) Years of Service.

 

3

 

(p) “Total and Permanent Disability” means: (1) if the Participant is insured under a
long-term disability insurance policy or plan which is paid for by the Company, the
Participant is totally disabled under the terms of that policy or plan; or (2) if no such
policy or plan exists, the Participant shall be considered to be totally disabled as
determined by the Committee.

(q) “Years of Service” shall mean the aggregate annual periods of continuous employment or
other service with the Company measured from the Participant’s date of hire (or re-hire)
and ending on the date the Participant Separates from Service, including employment or
other service with any predecessors to the Company, and such other entities as approved by
the Committee (or its delegatee(s)). An absence or leave approved by the Company, to the
extent permitted by applicable provisions of the Code, shall not be considered an
interruption of employment or performance of services for any purpose under this Plan.

3. Administration of the Plan

(a) The management of the Plan shall be vested in the Committee; provided, however, that all
acts and authority of the Committee pursuant to this Plan shall be subject to the provisions of the
Committee’s Charter, as amended from time to time, and such other authority as may be delegated to
the Committee by the Board. The Committee may, with respect to Participants whom the Committee
determines are not likely to be subject to Section 162(m) of the Code, delegate such of its powers
and authority under the Plan to the Company’s officers as it deems necessary or appropriate. In the
event of such delegation, all references to the Committee in this Plan shall be deemed references
to such officers as it relates to those aspects of the Plan that have been delegated.

(b) Subject to the terms of the Plan, the Committee shall, among other things, have full
authority and discretion to determine eligibility for participation in the Plan, make awards under
the Plan, establish the terms and conditions of such awards (including the Performance Goal(s) and
Performance Measure(s) to be utilized) and determine whether the Performance Goals applicable to
any Performance Measures for any awards have been achieved. The Committee’s determinations under
the Plan need not be uniform among all Participants, or classes or categories of Participants, and
may be applied to such Participants, or classes or categories of Participants, as the Committee, in
its sole and absolute discretion, considers necessary, appropriate or desirable. The Committee is
authorized to interpret the Plan, to adopt administrative rules, regulations, and guidelines for
the Plan, and may correct any defect, supply any omission or reconcile any inconsistency or
conflict in the Plan or in any award. All determinations by the Committee shall be final,
conclusive and binding on the Company, the Participant and any and all interested parties.

 

4

 

(c) Subject to the provisions of the Plan, the Committee will have the authority and
discretion to determine the extent to which awards under the Plan will be
structured to conform to the requirements applicable to performance-based compensation as
described in Section 162(m) of the Code, and to take such action, establish such procedures, and
impose such restrictions at the time such awards are granted as the Committee determines to be
necessary or appropriate to conform to such requirements. Notwithstanding any provision of the Plan
to the contrary, if an award under this Plan is intended to qualify as performance-based
compensation under Section 162(m) of the Code and the regulations issued thereunder and a provision
of this Plan would prevent such award from so qualifying, such provision shall be administered,
interpreted and construed to carry out such intention (or disregarded to the extent such provision
cannot be so administered, interpreted or construed).

(d) The benefits provided under the Plan are intended to be excepted from coverage under
Section 409A and the regulations promulgated thereunder and shall be construed accordingly.
Notwithstanding any provision of the Plan to the contrary, if any benefit provided under this Plan
is subject to the provisions of Section 409A and the regulations issued thereunder (and not
excepted therefrom), the provisions of the Plan shall be administered, interpreted and construed in
a manner necessary to comply with Section 409A and the regulations issued thereunder (or
disregarded to the extent such provision cannot be so administered, interpreted, or construed.)

4. Participation in the Plan

Officers and key employees of the Company shall be eligible to participate in the Plan. No
employee shall have the right to participate in the Plan, and participation in the Plan in any one
Performance Period does not entitle an individual to participate in future Performance Periods.

5. Incentive Compensation Awards

(a) The Committee may, in its discretion, from time to time make awards to persons eligible
for participation in the Plan pursuant to which the Participant will earn cash compensation. The
amount of a Participant’s award may be based on a percentage of such Participant’s salary or such
other methods as may be established by the Committee. Each award shall be communicated to the
Participant, and shall specify, among other things, the terms and conditions of the award and the
Performance Goals to be achieved. The maximum amount that may be awarded and paid under the Plan to
a Participant for any calendar year shall not exceed USD $10,000,000.

(b) With respect to awards that are intended to be performance-based compensation under
Section 162(m) of the Code, each award shall be conditioned upon the Company’s achievement of one
or more Performance Goal(s) with respect to the Performance Measure(s) established by the
Committee. No later than ninety (90) days after the beginning of the applicable Performance Period,
the Committee shall establish in writing the Performance Goals, Performance Measures and the
method(s) for computing the amount of compensation which will be payable under the Plan to each
Participant if the Performance Goals established by the Committee are attained; provided

 

5

 

however, that for a Performance Period of less than one year, the Committee shall take any
such actions prior to the lapse of 25% of the Performance Period. In addition to establishing
minimum Performance Goals below which no compensation shall be payable pursuant to an award, the
Committee, in its discretion, may create a performance schedule under which an amount less than or
more than the target award may be paid so long as the Performance Goals have been achieved.

(c) The Committee, in its sole discretion, may also establish such additional restrictions or
conditions that must be satisfied as a condition precedent to the payment of all or a portion of
any awards. Such additional restrictions or conditions need not be performance-based and may
include, among other things, the receipt by a Participant of a specified annual performance rating,
the continued employment by the Participant and/or the achievement of specified performance goals
by the Company, business unit or Participant. Furthermore and notwithstanding any provision of this
Plan to the contrary, the Committee, in its sole discretion, may reduce the amount of any award to
a Participant if it concludes that such reduction is necessary or appropriate based upon: (i) an
evaluation of such Participant’s performance; (ii) comparisons with compensation received by other
similarly situated individuals working within the Company’s industry; (iii) the Company’s financial
results and conditions; or (iv) such other factors or conditions that the Committee deems relevant.
Notwithstanding any provision of this Plan to the contrary, the Committee shall not use its
discretionary authority to increase any award that is intended to be performance-based compensation
under Section 162(m) of the Code.

6. Payment of Individual Incentive Awards

(a) After the end of the Performance Period, the Committee shall certify in writing the extent
to which the applicable Performance Goals and any other material terms have been achieved. Subject
to the provisions of the Plan, earned Awards shall be paid in the first calendar year immediately
following the end of the Performance Period on or before March 15th of such calendar year (“Payment
Date”). For purposes of this provision, and for so long as the Code permits, the minutes of the
Committee meeting in which the certification is made may be treated as written certification.

(b) Unless otherwise determined by the Committee or as otherwise provided in a Company plan
applicable to Participant or any agreement between the Participant and the Company, Participants
who have a Separation from Service prior to the Payment Date of an award for any reason other than
as provided below, shall Forfeit any and all rights to payment under such award(s) then outstanding
under the terms of the Plan and shall not be entitled to any cash payment for the applicable
period. If a Participant Separates from Service prior to the Payment Date of an award (i) by
reason of death, Retirement or Total and Permanent Disability, the Participant’s award shall be
prorated to reflect the period of service during the Performance Period prior to his/her death,
Retirement or Total and Permanent Disability; (ii) on account of an involuntary Separation from
Service by the Company other than for Cause (A) within the 90-day period immediately preceding a
Change of Control, or (B) on or within the one (1) year

 

6

 

period following a Change of Control, the award will be deemed earned at a target award level;
or (iii) on account of an involuntary Separation from Service by the Company other than for Cause
(and other than an involuntary Separation from Service by the Company in connection with a Change
of Control as described in clause (ii)), the Participant’s award shall be prorated to reflect the
period of service during the Performance Period prior to his/her Separation from Service. Except
as otherwise provided herein, any payments under the Plan shall be paid either to the Participant
or, as appropriate, the Participant’s estate, subject to the Committee’s certification that the
applicable Performance Goals and other material terms have been met. For purposes of this
subsection 6(b), the prorated portion of an award shall be based on the ratio of the number of
complete months the Participant is employed or serves during the Performance Period to the total
number of months in the Performance Period. Any payment to which a Participant becomes entitled to
receive pursuant to the Change of Control provisions of this subsection 6(b) will be paid to the
Participant contemporaneous with the consummation of the Change of Control or, if later, on or
before the sixtieth (60th) day following the Participant’s Separation from Service (but, in each
case, within the short-term deferral exception as specified in Treas. Reg. § 1.409A-1(b)(4)).

(c) The Committee shall determine whether, to what extent, and under what additional
circumstances amounts payable with respect to an award under the Plan shall be deferred either
automatically, at the election of the Participant, or by the Committee. All deferrals under the
Alpha Natural Resources, Inc. and Subsidiaries Deferred Compensation Plan, the Foundation Coal
Deferred Compensation Plan, or such other plan of the Company as may be designated by the Committee
shall be made in accordance with terms and procedures of such plan.

7. Clawback/ Recoupment

(a) For awards paid under this Plan after March 1, 2010, the Committee may, to the extent
permitted by governing law, require reimbursement of any cash compensation paid to a Participant
under the Plan if the Participant is an employee of pay grade 22 or higher at the beginning of the
Performance Period where: (i) the payment was predicated upon the achievement of certain financial
results that were subsequently the subject of a restatement of the Company’s financial statements
filed with the Securities and Exchange Commission, which restatement occurs no more than three
years from the date of such payment, where the Committee reasonably determines that any employee
engaged in intentional misconduct that caused or partially caused the need for the restatement, and
a lower payment would have been made to Participants based upon the restated financial results;
provided, however, that the Committee reserves the discretion to determine that a Participant shall
not be subject to this provision; or (ii) the Participant engaged in ethical misconduct in
violation of the Company’s Code of Business Ethics, which the Committee reasonably determines
caused material business or reputational harm to the Company.

 

7

 

(b) If the Committee reasonably determines that a payment of cash compensation made to a
Participant under the Plan should be reimbursed under subsections (a)(i) or (a)(ii), then the
following shall apply: (i) in the event reimbursement is required under subsection (a)(i), the Participant shall be required to
reimburse the Company in an amount equal to the dollar value of the cash compensation received by
the Participant in excess of what the Participant would have received on such date had the payment
been based upon such restated financial results; or (ii) in the event reimbursement is required
under subsection (a)(ii), the Participant shall be required to reimburse the Company in an amount
the Committee reasonably determines to be appropriate, which could equal up to the full amount of
the cash compensation paid to the Participant under the Plan during such three-year period.
Notwithstanding the foregoing, the Company shall not be required to make any additional payment in
the event that the restated financial results would have resulted in a greater payment to the
Participant.

(c) In the event the Participant is obligated to reimburse the Company for any cash
compensation received under the Plan pursuant to subsections (b)(i) or (b)(ii), the Company may, at
its sole election: (i) require the Participant to pay the amount in a lump sum within 30 days of
such determination; (ii) deduct the amount from any other compensation owed to the Participant (as
a condition to receiving additional awards under the Plan), and the Participant by accepting
participation in the Plan agrees to permit the deduction provided for by this subparagraph); or
(iii) a combination of subsections (c)(i) and (c)(ii).

(d) By participating in the Plan, the Participant agrees that timely payment to the Company as
set forth in this Section 7 is reasonable and necessary, and that timely payment to the Company as
set forth in this Section 7 is not a penalty, and it does not preclude the Company from seeking all
other remedies that may be available to the Company. The Participant further acknowledges and
agrees that a Participant’s award(s) shall be cancelled and Forfeited without payment by the
Company if the Committee reasonably determines that a Participant has engaged in the conduct
specified under subsections (a)(i) and (a)(ii).

8. Amendment or Termination of the Plan

While the Company intends that the Plan shall continue in force from year to year, the Company
reserves the right to amend, modify or terminate the Plan, at any time; provided, however, that no
such modification, amendment or termination shall, without the consent of the Participant,
materially adversely affect the rights of such Participant to any payment that has been determined
by the Committee to be due and owing to the Participant under the Plan but not yet paid. Any and
all actions permitted under this Section 8 may be authorized and performed by the Committee in its
sole and absolute discretion.

Notwithstanding the foregoing or any provision of the Plan to the contrary, the Committee may
at any time (without the consent of the Participant) modify, amend or terminate any or all of the
provisions of this Plan to the extent necessary to conform the provisions of the Plan with Section
409A or Section 162(m) of the Code, the regulations promulgated thereunder or an exception thereto
regardless of whether such modification, amendment, or termination of the Plan shall adversely
affect the rights of a Participant under the Plan. Notwithstanding any provision of the Plan to the
contrary, in no event

 

8

 

shall the Committee or Board (or any member thereof), or the Company (or its employees, officers,
directors or affiliates) have any liability to any Participant (or any other person) due to the
failure of the Plan to satisfy the requirements of Section 409A or any other applicable law.

9. Rights Not Transferable

A Participant’s rights under the Plan may not be assigned, pledged, or otherwise transferred
except, in the event of a Participant’s death, to the Participant’s designated beneficiary, or in
the absence of such a designation, by will or by the laws of descent and distribution.

10. Funding/Payment

The Plan is not funded and all awards payable hereunder shall be paid from the general assets
of the Company. No provision contained in this Plan and no action taken pursuant to the provisions
of this Plan shall create a trust of any kind or require the Company to maintain or set aside any
specific funds to pay benefits hereunder. To the extent a Participant acquires a right to receive
payments from the Company under the Plan, such right shall be no greater than the right of any
unsecured general creditor of the Company. If any earned award is not paid by the Payment Date due
to administrative impracticality, such earned award will be paid, without earnings, as soon as
administratively practicable thereafter.

11. Withholdings

The Company shall have the right to withhold from any awards payable under the Plan or other
wages payable to a Participant such amounts sufficient to satisfy federal, state and local tax
withholding obligations arising from or in connection with the Participant’s participation in the
Plan and such other deductions as may be authorized by the Participant or as required by applicable
law.

12. No Employment or Service Rights

Nothing contained in the Plan shall confer upon any Participant any right with respect to
continued employment or service with the Company (or any of its affiliates) nor shall the Plan
interfere in any way with the right of the Company (or any of its affiliates) to at any time
reassign the Participant to a different job, change the compensation of the Participant or
terminate the Participant’s employment or service for any reason.

 

9

 

13. Other Compensation Plans

Nothing contained in this Plan shall prevent the Corporation from adopting other or additional
compensation arrangements for employees of the Corporation, including arrangements that are not
intended to comply with Section 162(m) of the Code.

14. Governing Law

The Plan shall be governed by and construed in accordance with the laws of the State of
Delaware, without giving effect to its conflict of law provisions.

15. Effective Date

The Plan shall become effective immediately upon the approval and adoption thereof by the
Board; provided, however, that no award intended to qualify as performance-based compensation
within the meaning of Section 162(m) of the Code shall be payable prior to approval of the Plan’s
material terms by the Company’s stockholders.

 

10

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