Document:

exhibit10-16.htm

    
      Exhibit
10.16

    

     

     

    ALPHA
NATURAL RESOURCES ANNUAL INCENTIVE BONUS (AIB) PLAN

     

     

     

    ARTICLE
1

     

     

    STATEMENT
OF PURPOSE

     

    Alpha
Natural Resources' compensation policies are intended to support the Company's
overall objective of enhancing stockholder value.  In furtherance of
this philosophy, the Alpha Natural Resources Annual Incentive Bonus (AIB) Plan
is designed to provide incentives for business performance, reward contributions
towards goals consistent with the Company's business strategy and enable the
Company to attract and retain highly qualified executive officers and other key
employees.

     

     

    ARTICLE
2

     

     

    DEFINITIONS

     

    The terms
used in this Plan include the feminine as well as the masculine gender and the
plural as well as the singular, as the context in which they are used
requires.  The following terms, unless the context requires otherwise,
are defined as follows:

     

    
      	
              2.1  

            	
              "ALPHA
      NATURAL RESOURCES" means Alpha Natural Resources, Inc., or any successor
      to its obligations under this Plan.

            

    

     

    
      	
              2.2  

            	
              "BONUS"
      means the incentive compensation determined by the Committee under Section
      4.4 of the Plan payable in cash.

            

    

     

    
      	
              2.3  

            	
              "BOARD"
      means the Alpha Natural Resources Board of
  Directors.

            

    

     

    
      	
              2.4  

            	
              "CODE"
      means the Internal Revenue Code of 1986, as
  amended.

            

    

     

    
      	
              2.5  

            	
              "COMMITTEE"
      means the Compensation Committee of the Board or any successor committee
      with responsibility for compensation, or any subcommittee, as long as the
      number of Committee members and their qualifications shall at all times be
      sufficient to meet the applicable requirements for "outside directors"
      under Section 162(m) and the regulations thereunder, as in effect from
      time to time, and the independence requirements of the New York Stock
      Exchange, Inc.  or any other applicable exchange on which Alpha
      Natural Resources' common equity is at the time
  listed.

            

    

     

    
      	
              2.6  

            	
              "COMPANY"
      means Alpha Natural Resources and any of its Subsidiaries or parent
      company that adopt this Plan or that have employees who are participants
      under this Plan.

            

    

     

    
      	
              2.7  

            	
              "DISABILITY"
      means permanent and total disability as defined in Code Section
      22(e)(3).

            

    

     

    
      	
              2.8  

            	
              "EXECUTIVE
      OFFICER" means any Company employee who is an "executive officer" as
      defined in Rule 3b-7 promulgated under the Exchange
  Act.

            

    

     

    
      	
              2.9  

            	
              "EXCHANGE
      ACT" means the Securities Exchange Act of 1934, as
  amended.

            

    

     

    
      	
              2.10  

            	
              "PAYMENT
      DATE" has the meaning set forth in Section 4.5(a) of this
      Plan.

            

    

     

    
      	
              2.11  

            	
              "PARTICIPANT"
      means an Executive Officer or key management employee as described in
      Article 3 of this Plan.

            

    

     

    
      	
              2.12  

            	
              "PERFORMANCE
      PERIOD" means the period for which a Bonus may be made.  Unless
      otherwise specified by the Committee, the Performance Period shall be a
      calendar year, beginning on January 1 of any
  year.

            

    

     

    
      	
              2.13  

            	
              "PLAN"
      means the Alpha Natural Resources' Annual Incentive Bonus (AIB) Plan, as
      it may be amended from time to
time.

            

    

     

    
      	
              2.14  

            	
              "RETIREMENT"
      means a Termination of Employment, after appropriate notice to the
      Company, (a) on or after the earliest permissible retirement date under a
      qualified pension or retirement plan of the Company or (b) upon such terms
      and conditions approved by the Committee, or officers of the Company
      designated by the Board or the
Committee.

            

    

     

    
      	
              2.15  

            	
              "SEC"
      means the Securities and Exchange
Commission.

            

    

     

    
      	
              2.16  

            	
              "SECTION
      162(M)" means Code Section 162(m) and regulations promulgated thereunder
      by the Secretary of the Treasury.

            

    

     

    
      	
              2.17  

            	
              "SUBSIDIARY"
      means any corporation, partnership, limited liability company, association
      or other entity of which securities or other ownership interests
      representing more than 50% of the equity or more than 50% of the ordinary
      voting power or more than 50% of the general partnership interests are, at
      the time any determination is being made, directly or indirectly owned by
      Alpha Natural Resources.

            

    

     

    
      	
              2.18  

            	
              "TERMINATION
      OF EMPLOYMENT" means (a) the termination of the Participant's employment
      relationship with the Company, or (b) the occurrence of a transaction by
      which the Participant's employing Company ceases to be a
      Subsidiary.  Whether a Participant has terminated from
      employment will be determined by the Committee based on all of the facts
      and circumstances and, to the extent applicable to any award or benefit,
      in accordance with the guidance issued under Section 409A of the
      Code.

            

    

     

     

    
       

       

       

       

    

    ARTICLE
3

     

     

    PARTICIPATION

     

    An
Executive Officer or other key employee of the Company designated by the
Committee shall be a Participant in this Plan and shall continue to be a
Participant until any Bonus he may receive has been paid or forfeited under the
terms of this Plan.  Not later than 90 days after the beginning of
each Performance Period, the Committee shall designate, by name or position
title, the Plan Participants for such Performance Period.

     

    
       

    

    ARTICLE
4

     

     

    INCENTIVE
BONUSES

     

    
      	
              4.1  

            	
              OBJECTIVE
      PERFORMANCE GOALS.  The Committee shall establish written,
      objective performance goals for each Performance Period not later than 90
      days after the beginning of such Performance Period (but not after more
      than 25% of such Performance Period has elapsed), except in the case of
      the 2004 Performance Period, for which performance goals shall be
      established at the time this Plan is approved by the
      Committee.  The objective performance goals shall be stated as
      specific amounts of, or specific changes in, one or more of the financial
      measures described in Section 4.2.  Objective performance goals
      may also include operational goals such as:  productivity,
      safety, other strategic objectives and individual performance
      goals.  The objective performance goals need not be the same for
      different Performance Periods and for any Performance Period may be
      stated:  (a) as goals for Alpha Natural Resources, for one or
      more of its Subsidiaries, divisions, business or organizational units, or
      for any combination of the foregoing; (b) on an absolute basis or relative
      to the performance of other companies or of a specified index or indices,
      or be based on any combination of the foregoing; and (c) separately for
      one or more of the Participants, collectively for Participants holding the
      same position title or for the entire group of Participants, or in any
      combination of the foregoing.

            

    

     

    
      	
              4.2  

            	
              FINANCIAL
      MEASURES.  The Committee shall use any one or more of the
      following financial measures to establish objective performance goals
      under Section 4.1:  earnings, operating earnings, earnings per
      share, operating earnings per share, earnings before interest taxes
      depreciation and amortization (EBITDA), revenues, stockholders' equity,
      return on equity, return on assets, return on invested capital, economic
      value added, operating margins, cash flow, total stockholder return,
      expenses, debt-to-capital ratio or market share.  The Committee
      may specify any reasonable definition of the financial measures it
      uses.  Such definitions may provide for reasonable adjustments
      and may include or exclude items, including but not limited
      to:  realized investment gains and losses; extraordinary,
      unusual or non-recurring items; effects of accounting changes, currency
      fluctuations, acquisitions, divestitures, or necessary financing
      activities; recapitalizations, including stock splits and dividends;
      expenses for restructuring or productivity initiatives; and other
      non-operating items.

            

    

     

    
      	
              4.3  

            	
              PERFORMANCE
      EVALUATION.  Within a reasonable time after the close of a
      Performance Period, the Committee shall determine whether the objective
      performance goals established for that Performance Period have been met by
      the respective Participants.  If the objective performance goals
      and any other material terms established by the Committee have been met by
      a Participant, the Committee shall so certify in writing with respect to
      such Participant.  For purposes of this Plan, and for so long as
      the Code permits, the approved minutes of the Committee meeting in which
      the certification is made may be treated as written
      certification.

            

    

     

    
      	
              4.4  

            	
              BONUS.  If
      the Committee has made the written certification under Section 4.3 for a
      Performance Period, each Participant to whom the certification applies
      shall be eligible for a Bonus for the Performance Period.  The
      Bonus for each such Participant shall not exceed 200% of the Participant's
      base salary in effect on the first day of the applicable Performance
      Period (which shall be January 1 for a calendar year Performance
      Period).  In addition, the maximum amount that any one
      Participant may receive in any fiscal year under this plan is
      $10,000,000.  For any Performance Period, however, the Committee
      shall have sole and absolute discretion to reduce the amount of, or
      eliminate entirely, the Bonus to one or more of the Participants based
      upon the Committee's review of the objective performance goals for each
      Participant pursuant to Section
4.3.

            

    

     

    
      	
              4.5  

            	
              PAYMENT
      OR DEFERRAL OF THE BONUS.

            

    

     

    (a) As soon
as practicable after the Committee's determination under Section 4.4, but
subject to Section 4.5(b), the Company shall pay the Bonus to the
Participant.  Subject to the provisions of this Plan, earned Bonuses
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 (the "Payment
Date").  The Company shall have the right to deduct from any Bonus,
any applicable Federal, state and local income and employment taxes, and any
other amounts that the Company is otherwise required to deduct.

     

    (b) Subject
to the Committee's approval and applicable law and to the extent consistent with
Section 409A of the Code, Participants may request that payments of a Bonus be
deferred under, and in accordance with the provisions of, the Deferred
Compensation Plan (or such other plan of the Company as may be designated by the
Committee).

     

    
      	
              4.6  

            	
              ELIGIBILITY
      FOR PAYMENTS.

            

    

     

    (a) Except as
otherwise provided in this Section 4.6, a Participant shall be eligible to
receive a Bonus for a Performance Period only if such Participant is employed by
the Company continuously from the beginning of the Performance Period to the end
of the Performance Period.

     

    (b) Under
Section 4.6(a), a leave of absence that lasts less than three months and that is
approved in accordance with applicable Company policies is not a break in
continuous employment.  In the case of a leave of absence of three
months or longer:  (1) the Committee shall determine whether the
leave of absence constitutes a break in continuous employment, and (2) if a
Participant is on a leave of absence on the date that a Bonus or payment of the
Bonus is to be made, the Committee may require that the Participant return to
active employment with the Company at the end of the leave of absence as a
condition of receiving the Bonus or payment.  Any determination as to
a Participant's eligibility for a Bonus or payment under this Section 4.6(b) may
be deferred for a reasonable period after such Participant's return to active
employment.

     

    (c) The
Committee may determine, in its sole discretion, that a Bonus will be payable
pro-rata for a Participant who either (1) becomes eligible to participate during
the Performance Period due to commencement of his employment or his promotion
during such Performance Period, or (2) terminates his employment with the
Company during such Performance Period due to his death, Retirement or
Disability.  Notwithstanding the foregoing, (x) no Bonus will be
payable for a Performance Period to an employee who first becomes eligible to
participate during the fourth quarter of such Performance Period and (y) any
Bonus payable to a Participant who is promoted during the fourth quarter of a
Performance Period will be based on the performance goals and bonus amounts
determined for employees of the same level of position as was such Participant
prior to his promotion.

     

     

     

     

    ARTICLE
5

     

     

    ADMINISTRATION

     

    
      	
              5.1  

            	
              GENERAL
      ADMINISTRATION.  This Plan shall be administered by the
      Committee, subject to such requirements for review and approval by the
      Board as the Board may establish.  Subject to the terms and
      conditions of this Plan and Section 162(m), the Committee is authorized
      and empowered in its sole discretion to select or approve Participants and
      to make Bonuses in such amounts and upon such terms and conditions as it
      shall determine. 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.

            

    

     

    
      	
              5.2  

            	
              ADMINISTRATIVE
      RULES.  The Committee shall have full power and authority to
      adopt, amend and rescind administrative guidelines, rules and regulations
      pertaining to this Plan and to interpret this Plan and rule on any
      questions respecting any of its provisions, terms and
      conditions.

            

    

     

    
      	
              5.3  

            	
              COMMITTEE
      MEMBERS NOT ELIGIBLE.  No member of the Committee shall be
      eligible to participate in this
Plan.

            

    

     

    
      	
              5.4  

            	
              COMMITTEE
      MEMBERS NOT LIABLE.  The Committee and each of its members shall
      be entitled to rely upon certificates of appropriate officers of the
      Company with respect to financial and statistical data in order to
      determine if the objective performance goals for a Performance Period have
      been met.  Neither the Committee nor any member shall be liable
      for any action or determination made in good faith with respect to this
      Plan or any Bonus made hereunder.  Notwithstanding any provision
      of the Plan to the contrary, in no event shall the Committee or the Board,
      or any member of the Committee or the Board, 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 or any
      benefit payable thereunder to satisfy the requirements of Section 409A or
      any other applicable law.

            

    

     

    
      	
              5.5  

            	
              DECISIONS
      BINDING.  All decisions, actions and interpretations of the
      Committee concerning this Plan shall be final and binding on Alpha Natural
      Resources and its Subsidiaries and their respective boards of directors,
      and on all Participants and other persons claiming rights under this
      Plan.

            

    

     

    
      	
              5.6  

            	
              APPLICATION
      OF SECTION 162(m); STOCKHOLDER
APPROVAL.

            

    

     

    (a) This Plan
is intended to be administered, interpreted and construed so that Bonus payments
remain tax deductible to the Company and unlimited by Section 162(m), which
restricts under certain circumstances the Federal income tax deduction for
compensation paid by a public company to named executives in excess of $1
million per year.  As of this Plan's effective date, the exemption is
based on Treasury Regulation Section 1.162-27(f), which generally exempts from
the application of Section 162(m) compensation paid pursuant to a plan that
existed before a company becomes publicly held.  Under such Treasury
Regulation, this exemption is available to this Plan for the duration of the
period that lasts until the earlier of the expiration or material modification
of this Plan or the first meeting of stockholders at which directors are to be
elected that occurs after the close of the third calendar year following the
calendar year in which the Company first becomes subject to the reporting
obligations of Section 12 of the Exchange Act.  The Committee, or the
Board, may, without stockholder approval, amend this Plan retroactively or
prospectively to the extent it determines necessary to comply with any
subsequent amendment or clarification of Section 162(m) required to preserve the
Company's Federal income tax deduction for compensation paid pursuant to this
Plan.

     

    (b) To the
extent that the Committee determines that the exemption described in Section
5.6(a) above is no longer available with respect to a Bonus, such Bonus shall be
intended to satisfy the applicable requirements for the performance-based
compensation exception under Section 162(m) and shall be contingent upon
stockholder approval of this Plan in accordance with Section 162(m), the
regulations thereunder and other applicable U.S.  Treasury
regulations.  Unless and until such stockholder approval is obtained,
no Bonus shall be made under this Plan.

     

    
      	
              5.7  

            	
              SECTION
      409A OF THE CODE.  All Bonuses payable under this Plan are
      intended to be excepted from Section 409A of the
      Code.  Notwithstanding any provision of this Plan to the
      contrary, if any benefit provided under this Plan is subject to the
      provisions of Section 409A of the Code and the regulations issued
      thereunder, the provisions of the Plan shall be administered, interpreted
      and construed in a manner necessary to comply with Section 409A, the
      regulations issued thereunder or an exception thereto (or disregarded to
      the extent such provision cannot be so administered, interpreted, or
      construed.)  Accordingly, if a Participant is a "specified
      employee" for purposes of Section 409A and a payment subject to Section
      409A (and not excepted therefrom) to the Participant is due upon
      separation from service, such payment shall be delayed for a period of six
      (6) months after the date the Participant separates from service (or, if
      earlier, the death of the Participant).  Any payment that would
      otherwise have been due or owing during such six-month period will be paid
      immediately following the end of the six-month period unless another
      compliant date is specified in the applicable agreement.

            

    

     

     

    ARTICLE
6

     

     

    AMENDMENTS;
TERMINATION

     

    This Plan
may be amended or terminated by the Board or the Committee.  All
amendments to this Plan, including an amendment to terminate this Plan, shall be
in writing.  An amendment to this Plan shall not be effective without
the prior approval of the stockholders of Alpha Natural Resources if such
approval is necessary to continue to qualify Bonuses as performance-based
compensation under Section 162(m), or otherwise under Treasury or SEC
regulations, the rules of the New York Stock Exchange, Inc.  or any
other applicable exchange or any other applicable law or
regulations.  A Participant's rights with respect to any Bonuses made
to him may not be abridged by any amendment, modification or termination of this
Plan without his individual consent.  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 or an award made hereunder to the extent
necessary to conform the provisions of the Plan with Section 409A or Section
162(m) of the Code or the regulations promulgated thereunder regardless of
whether such modification, amendment, or termination of the Plan shall abridge
or otherwise adversely affect the rights of a Participant under this
Plan.

     

     

    ARTICLE
7

     

     

    OTHER
PROVISIONS

     

    
      	
              7.1  

            	
              DURATION
      OF THE PLAN.  This Plan is effective as of January 1, 2004 (the
      "Effective Date").  This Plan shall remain in effect until all
      Bonuses made under this Plan have been paid or forfeited under the terms
      of this Plan, and all Performance Periods related to Awards made under
      this Plan have expired.  No Bonuses may be made under this Plan
      for any Performance Period that would end after the expiration of the
      exemption referred to in Section 5.6, unless the Board, subject to any
      stockholder approval that may then be required to continue to qualify this
      Plan as a performance-based plan under Section 162(m), extends this
      Plan.

            

    

     

    
      	
              7.2  

            	
              BONUSES
      NOT ASSIGNABLE.  No Bonus or any right thereto shall be
      assignable or transferable by a Participant except by will or by the laws
      of descent and distribution.  Any other attempted assignment or
      alienation shall be void and of no force or
  effect.

            

    

     

    
      	
              7.3  

            	
              PARTICIPANT'S
      RIGHTS.  The right of any Participant to receive any payments
      under a Bonus granted to such Participant pursuant to the provisions of
      this Plan shall be an unsecured claim against the general assets of the
      Company.  This Plan shall not create, nor be construed in any
      manner as having created, any right by a Participant to any Bonus for a
      Performance Period because of a Participant's participation in this Plan
      for any prior Performance Period, or because the Committee has made a
      written certification under Section 4.3 for the Performance
      Period.  Moreover, there is no obligation for uniform treatment
      for Participants under this Plan.  If any earned Bonus is not
      paid by the Payment Date due to administrative impracticality, such earned
      Bonus will be paid, without earnings, as soon as administratively
      practicable thereafter.

            

    

     

    
      	
              7.4  

            	
              TERMINATION
      OF EMPLOYMENT.  The Company retains the right to terminate the
      employment of any Participant or other employee at any time for any reason
      or no reason, and a Bonus is not, and shall not be construed in any manner
      to be, a waiver of such right.

            

    

     

    
      	
              7.5  

            	
              EXCLUSION
      FROM BENEFITS.  Bonuses under this Plan shall not constitute
      compensation for the purpose of determining participation or benefits
      under any other plan of the Company unless specifically included as
      compensation in such other plan.  Notwithstanding anything to
      the contrary contained herein, the Company may provide employer
      contributions, including direct or matching contributions, pursuant to its
      401(k) plan or pension plan in connection with Bonuses awarded to
      Participants pursuant to this Plan.

            

    

     

    
      	
              7.6  

            	
              SUCCESSORS.  Any
      successor (whether direct or indirect, by purchase, merger, consolidation
      or otherwise) to all or substantially all of Alpha Natural Resources'
      business or assets, shall assume Alpha Natural Resources' liabilities
      under this Plan and perform any duties and responsibilities in the same
      manner and to the same extent that Alpha Natural Resources would be
      required to perform if no such succession had taken
  place.

            

    

     

    
      	
              7.7  

            	
              LAW
      GOVERNING CONSTRUCTION.  The construction and administration of
      this Plan and all questions pertaining thereto shall be governed by the
      laws of the State of Delaware, except to the extent that such law is
      preempted by Federal law.

            

    

     

    
      	
              7.8  

            	
              HEADINGS
      NOT A PART HERETO.  Any headings preceding the text of the
      several Articles, Sections, subsections, or paragraphs hereof are inserted
      solely for convenience of reference and shall not constitute a part of
      this Plan, nor shall they affect its meaning, construction or
      effect.

            

    

     

    
      	
              7.9  

            	
              SEVERABILITY
      OF PROVISIONS.  If any provision of this Plan is determined to
      be void by any court of competent jurisdiction, this Plan shall continue
      to operate and, for the purposes of the jurisdiction of the court only,
      shall be deemed not to include the provision determined to be
      void.

            

    

     

    

     

    

     

    Revised
11/20/07exhibit10-17.htm

    EXHIBIT
10.17

     

    ALPHA
NATURAL RESOURCES, INC.

     

    AMENDED
AND RESTATED

    2004
LONG-TERM INCENTIVE PLAN

     

    Restated
as of November 8, 2007

     

     

    
      On
February 11, 2005, ANR Holdings, LLC and certain related entities effected a
restructuring in connection with an initial public offering of equity of
Alpha.  As a result, all Awards granted under the 2004 Long-Term
Incentive Plan of Alpha Coal Management, LLC (the "Original Plan") were
automatically converted into Awards issued by Alpha, pursuant to and in
accordance with Section 13 of the Original Plan.  Pursuant to
such conversion, each Award outstanding under this Amended and Restated 2004
Long-Term Incentive Plan of Alpha Natural Resources, Inc., as amended (the
"Revised Plan"), and exercisable for one Unit (as defined in the Original Plan)
was converted into a Stock Option (as defined below) under this Revised Plan
exercisable for 0.78551 Common Shares.  This Revised Plan amends and
restates the Original Plan to reflect the necessary changes in the Original Plan
reasonably required in order to evidence such conversion and restructuring, and
includes revisions incorporating certain administrative provisions of Section
409A of the Code.

       

      Section
1. Purpose.  The
purpose of this Revised Plan is to advance the interests of Alpha and its
stockholders by providing incentives to certain Eligible Persons who contribute
significantly to the strategic and long-term performance objectives and growth
of the Company.

       

      Section
2. Definitions.  Certain
capitalized terms applicable to this Revised Plan are set forth in Appendix
A.

       

      Section
3. Administration.  This
Revised Plan shall be administered by the Committee.  The Committee
shall have all the powers vested in it by the terms of this Revised Plan, such
powers to include exclusive authority to select the Eligible Persons to be
granted Awards under this Revised Plan, to determine the type, size, terms and
conditions of the Award to be made to each Eligible Person selected, to modify
or waive the terms and conditions of any Award that has been granted, to
determine the time when Awards will be granted, to establish performance
objectives, to make any adjustments necessary or desirable as a result of the
granting of Awards to Eligible Persons located outside the United States and to
prescribe the form of the agreements evidencing Awards made under this Revised
Plan.  Awards may, in the discretion of the Committee, be made under
this Revised Plan in assumption of, or in substitution for, outstanding Awards
previously granted by (i) the Company, (ii) any predecessor of the
Company, or (iii) a company acquired by the Company or with which the
Company combines.  The number of Common Shares underlying such
substitute awards shall be counted against the aggregate number of Common Shares
available for Awards under this Revised Plan.

       

      All
previous Awards issued under this Revised Plan are intended to be excepted from
coverage under Section 409A of the Code and the regulations promulgated
thereunder and shall be construed accordingly.  The Company reserves
the right to administer, amend or modify the Revised Plan and/or any Award
thereunder, or take any other action it deems necessary to enable the Revised
Plan and Awards thereunder to be interpreted or construed
accordingly.  Notwithstanding any provision of the Revised Plan or an
Award agreement to the contrary: (i) if any Award or benefit provided under this
Revised Plan is subject to the provisions of Section 409A of the Code and the
regulations issued thereunder, the provisions of the Revised Plan shall be
administered, interpreted and construed in a manner necessary to comply with
Section 409A, the regulations issued thereunder or an exception thereto (or
disregarded to the extent such provision cannot be so administered, interpreted
or construed); and (ii) Section 409A of the Code may impose upon the
Participant certain taxes or other charges for which the Participant is and
shall remain solely responsible.

       

      The
Committee is authorized to interpret this Revised Plan and the Awards granted
under this Revised Plan, to establish, amend and rescind any rules and
regulations relating to this Revised Plan, and to make any other determinations
that it deems necessary or desirable for the administration of this Revised
Plan.  The Committee may correct any defect or omission or reconcile
any inconsistency in this Revised Plan or in any Award in the manner and to the
extent the Committee deems necessary or desirable to carry it into
effect.  Any decision of the Committee in the interpretation and
administration of this Revised Plan, as described in this Revised Plan, shall
lie within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned (including, but not limited to, Participants
and their Beneficiaries or Permitted Transferees).  The Committee may
act only by a majority of its members in office, except that the members thereof
may authorize any one or more of their members or any officer of the Company to
execute and deliver documents or to take any other ministerial action on behalf
of the Committee with respect to Awards made or to be made to
Participants.

       

      No member
of the Committee and no officer of the Company shall be liable for anything done
or omitted to be done by such member or officer, by any other member of the
Committee or by any other officer of the Company in connection with the
performance of duties under this Revised Plan, except for his or her own willful
misconduct or as expressly provided by statute.  In addition to all
other rights of indemnification and reimbursement to which a member of the
Committee and an officer of the Company may be entitled, the Company shall
indemnify and hold harmless each such member or officer who was or is a party or
is threatened to be made a party to any threatened, pending or completed
proceeding or suit in connection with the performance of duties under this
Revised Plan against expenses (including reasonable attorneys' fees), judgments,
fines, liabilities, losses and amounts paid in settlement actually and
reasonably incurred by him or her in connection with such proceeding or suit,
except for his or her own willful misconduct or as expressly provided otherwise
by statute.  Expenses (including reasonable attorneys' fees) incurred
by such a member or officer in defending any such proceeding or suit shall be
paid by the Company in advance of the final disposition of such proceeding or
suit upon receipt of a written affirmation by such member or officer of his or
her good faith belief that he or she has met the standard of conduct necessary
for indemnification and a written undertaking by or on behalf of such member or
officer to repay such amount if it shall ultimately be determined that he or she
is not entitled to be indemnified by the Company as authorized in this
Section.

       

      Notwithstanding
anything to the contrary in this Revised Plan, effective with the date of this
Revised Plan, no new Awards may be granted pursuant to this Revised Plan,
provided, however, that the Committee may amend or modify existing Awards and
grant Awards in substitution for existing Awards.

       

      Section
4. Consistent
with the purposes of this Revised Plan, the Committee shall have exclusive power
to select the Eligible Persons who may participate in this Revised Plan and be
granted Awards under this Revised Plan.  Eligible Persons may be
selected individually or by groups or categories, as determined by the Committee
in its discretion.

       

      Section
5. Awards Under This
Revised Plan.

       

      (a) Types of
Awards.  Awards under this Revised Plan may include, but need not be
limited to, one or more of the following types, either alone or in any
combination thereof:  (i) Stock Options, (ii) Stock
Appreciation Rights, (iii) Restricted Stock, (iv) Restricted Stock
Units, (v) Performance Grants and (vi) any other type of Award deemed
by the Committee in its discretion to be consistent with the purposes of this
Revised Plan (including, but not limited to, Associated Awards, Awards of or
options or similar rights granted with respect to unbundled stock units or
components thereof, and Awards to be made to Participants who are foreign
nationals or are employed or performing services outside the United
States).  In the case of an Award granted in conjunction with an
Associated Award, the Award may be reduced on an appropriate basis to the extent
that the Associated Award has been exercised, paid to or otherwise received by
the Participant, as determined by the Committee.

       

      (b) Maximum
Number of Common Shares that May be Issued.  There may be issued under
this Revised Plan (as Restricted Stock, as Restricted Stock Units, in payment of
Performance Grants, pursuant to the exercise of Stock Options or Stock
Appreciation Rights or in payment of or pursuant to the exercise of such other
Awards as the Committee, in its discretion, may determine) an aggregate of not
more than 596,985 Common Shares, subject to adjustment as provided in
Section 15.  No Eligible Person may receive Awards under this
Revised Plan for more than 596,985 Common Shares in any one fiscal year of
Alpha, subject to adjustment as provided in Section 15.  Common
Shares issued pursuant to this Revised Plan may be either authorized but
unissued shares, treasury shares, reacquired shares or any combination
thereof.  If any Common Shares issued as Restricted Stock, Restricted
Stock Units or otherwise subject to repurchase or forfeiture rights are
reacquired by the Company pursuant to such rights or, if any Award is canceled,
terminates or expires unexercised, any Common Shares that would otherwise have
been issuable pursuant to such Award will be available for issuance under new
Awards.

       

      (c) Rights
with Respect to Common Shares and Other Securities.  Except as
provided in subsection 8(c) with respect to Awards of Restricted Stock and
unless otherwise determined by the Committee in its discretion, a Participant to
whom an Award is made (and any Person succeeding to such a Participant's rights
pursuant to this Revised Plan) shall have no rights as a stockholder with
respect to any Common Shares or as a holder with respect to other securities, if
any, issuable pursuant to any such Award until the date a stock certificate
evidencing such Common Shares or other evidence of ownership is issued or
reflected as owned by such Participant.  Except as provided in
Section 8 or Section 15, no adjustment shall be made for dividends,
distributions or other rights (whether ordinary or extraordinary, and whether in
cash, securities, other property or other forms of consideration, or any
combination thereof) for which the record date is prior to the date such stock
certificate or other evidence of ownership is issued or reflected to be owned by
a Participant.  A Participant holding an Award providing for the
issuance of Common Shares in the future shall have no rights as a stockholder
with respect to such Common Shares until a stock certificate representing such
Common Shares or other evidence is issued or reflected to be owned by a
Participant.

       

      Section
6. Stock
Options.  The Committee may grant Stock Options or sell
Purchased Options; provided that an Incentive Stock Option may be granted only
to Eligible Persons who are employees of Alpha or any parent or subsidiary of
Alpha and provided further that Participants who have Associated Awards may not
receive Incentive Stock Options if such Associated Awards would disqualify the
Incentive Stock Option's status as such under the Code.  Each Stock
Option granted or sold under this Revised Plan shall be evidenced by an
agreement in such form as the Committee shall prescribe from time to time in
accordance with this Revised Plan and shall comply with the applicable terms and
conditions of this Section and this Revised Plan, and with such other terms and
conditions, including, but not limited to, restrictions upon the Stock Option or
the Common Shares issuable upon exercise thereof, as the Committee, in its
discretion, shall establish.

       

      (a) The
exercise price of a Stock Option may be equal to, or greater than, the Fair
Market Value of the Common Shares subject to such Stock Option at the time the
Stock Option is granted, as determined by the Committee; provided, however, that
in the case of an Incentive Stock Option, if granted to a Ten Percent Employee,
such exercise price shall not be less than 110% of such Fair Market Value at the
time the Stock Option is granted.  In no event, however, will the
exercise price per share of a Stock Option be less than the par value per share
of a Common Share.

       

      (b) The
Committee shall determine the number of Common Shares to be subject to each
Stock Option.

       

      (c) Any Stock
Option may be exercised during its term only at such time or times and in such
installments as the Committee may establish.

       

      (d) A Stock
Option shall not be exercisable:

       

      (i) in the
case of any Incentive Stock Option granted to a Ten Percent Employee, after the
expiration of five years from the date it is granted, and, in the case of any
other Stock Option, after the expiration of ten years from the date it is
granted; and

       

      (ii) unless
payment in full is made for the shares being acquired under such Stock Option at
the time of exercise as provided in subsection 6(i).

       

      (e) The
Committee shall determine in its discretion and specify in each agreement
evidencing a Stock Option the effect, if any, the termination of the
Participant's employment with or performance of services for the Company shall
have on the exercisability of the Stock Option; provided, however, that an
Incentive Stock Option that is exercised at a time that is beyond the time an
Incentive Stock Option may be exercised in order to qualify as such under the
Code shall cease to be an Incentive Stock Option.

       

      (f) In the
case of an Incentive Stock Option, the amount of the aggregate Fair Market Value
of Common Shares (determined at the time of grant of the Stock Option) with
respect to which Incentive Stock Options are exercisable for the first time by
an employee of the Company during any calendar year (under all such plans of his
or her employer corporation and its parent and subsidiary corporations) shall
not exceed $100,000 or such other amount as is specified in the
Code.

       

      (g) It is the
intent of Alpha that Nonqualified Stock Options granted under this Revised Plan
not be classified as Incentive Stock Options, that the Incentive Stock Options
granted under this Revised Plan be consistent with and contain or be deemed to
contain all provisions required under Section 422 and the other appropriate
provisions of the Code and any implementing regulations (and any successor
provisions thereof), and that any ambiguities in construction shall be
interpreted in order to effectuate such intent.  If a Stock Option is
intended to be an Incentive Stock Option, and if for any reason such Stock
Option (or portion thereof) shall not qualify as an Incentive Stock Option,
then, to the extent of such nonqualification, such Stock Option (or portion
thereof) shall be regarded as a Nonqualified Stock Option granted under this
Revised Plan; provided that such Stock Option (or portion thereof) otherwise
complies with this Revised Plan's requirements relating to Nonqualified Stock
Options.  In no event shall any member of the Committee or the Company
(or its employees, officers or directors) have any liability to any Participant
(or any other Person) due to the failure of a Stock Option to qualify for any
reason as an Incentive Stock Option.

       

      (h) A
Purchased Option may contain such additional terms not inconsistent with this
Revised Plan, including but not limited to the circumstances under which the
purchase price of such Purchased Option may be returned to the holder of the
Purchased Option, as the Committee may determine in its sole
discretion.

       

      (i) For
purposes of payments made to exercise Stock Options, such payment shall be made
in such form (including, but not limited to, cash, Common Shares, the surrender
of another outstanding Award under this Revised Plan, broker assisted cashless
exercise or any combination thereof) as the Committee may determine in its
discretion.

       

      Section
7. Stock
Appreciation Rights.  The Committee may grant Stock
Appreciation Rights.  Each Award of Stock Appreciation Rights granted
under this Revised Plan shall be evidenced by an agreement in such form as the
Committee shall prescribe from time to time in accordance with this Revised Plan
and shall comply with the applicable terms and conditions of this Section and
this Revised Plan, and with such other terms and conditions, including, but not
limited to, restrictions upon the Award of Stock Appreciation Rights or the
Common Shares issuable upon exercise thereof, as the Committee, in its
discretion, shall establish.

       

      (a) The
Committee shall determine the number of Common Shares to be subject to each
Award of Stock Appreciation Rights.

       

      (b) Any Stock
Appreciation Right may be exercised during its term only at such time or times
and in such installments as the Committee may establish.

       

      (c) The
Committee shall determine in its discretion and specify in each agreement
evidencing an Award of Stock Appreciation Rights the effect, if any, the
termination of the Participant's employment with or performance of services for
the Company shall have on the exercisability of the Award of Stock Appreciation
Rights.

       

      (d) An Award
of Stock Appreciation Rights shall entitle the holder to exercise such Award or
to surrender unexercised an Associated Award (or any portion of such Associated
Award) to Alpha and to receive from Alpha in exchange thereof, without payment
to Alpha, that number of Common Shares having an aggregate value equal to (or,
in the discretion of the Committee, less than) the excess of the Fair Market
Value of one Common Share, at the time of such exercise, over the exercise
price, times the number of Common Shares subject to the Award or the Associated
Award, or portion thereof, that is so exercised or surrendered, as the case may
be.  The Committee shall be entitled in its discretion to elect to
settle the obligation arising out of the exercise of a Stock Appreciation Right
by the payment of cash or Other Alpha Securities or property, or other forms of
payment or any combination thereof, as determined by the Committee, equal to the
aggregate value of the Common Shares it would otherwise be obligated to
deliver.  Any such election by the Committee shall be made as soon as
practicable after the receipt by the Committee of written notice of the exercise
of the Stock Appreciation Right.

       

      (e) A Stock
Appreciation Right may provide that it shall be deemed to have been exercised at
the close of business on the business day preceding the expiration date of the
Stock Appreciation Right or of the related Stock Option (or other Award), or
such other date as specified by the Committee, if at such time such Stock
Appreciation Right has a positive value.  Such deemed exercise shall
be settled or paid in the same manner as a regular exercise thereof as provided
in subsection 7(d) of this Agreement.

       

      Section
8. Restricted Stock
And Restricted Stock Units.  The Committee may grant Awards of
Restricted Stock and Restricted Stock Units.  Each Award of Restricted
Stock or Restricted Stock Units under this Revised Plan shall be evidenced by an
agreement in such form as the Committee shall prescribe from time to time in
accordance with this Revised Plan and shall comply with the applicable terms and
conditions of this Section and this Revised Plan, and with such other terms and
conditions as the Committee, in its discretion, shall establish.

       

      (a) The
Committee shall determine the number of Common Shares to be issued to a
Participant pursuant to the Award of Restricted Stock or Restricted Stock Units,
and the extent, if any, to which they shall be issued in exchange for cash,
other consideration, or both.

       

      (b) Until the
expiration of such period as the Committee shall determine from the date on
which the Award is granted and subject to such other terms and conditions as the
Committee in its discretion shall establish (the "RESTRICTED PERIOD"), a
Participant to whom an Award of Restricted Stock is made shall be issued, but
shall not be entitled to the delivery of, a stock certificate or other evidence
of ownership representing the Common Shares subject to such Award.

       

      (c) Unless
otherwise determined by the Committee in its discretion, a Participant to whom
an Award of Restricted Stock has been made (and any Person succeeding to such a
Participant's rights pursuant to this Revised Plan) shall have, after issuance
of a certificate or other evidence of ownership for the number of Common Shares
awarded and prior to the expiration of the Restricted Period, ownership of such
Common Shares, including the right to vote such Common Shares and to receive
dividends or other distributions made or paid with respect to such Common Shares
(provided that such Common Shares, and any new, additional or different shares,
or Other Alpha Securities or property, or other forms of consideration that the
Participant may be entitled to receive with respect to such Common Shares as a
result of a stock split, stock dividend or any other change in the corporation
or capital structure of Alpha, shall be subject to the restrictions set forth in
this Revised Plan as determined by the Committee in its discretion), subject,
however, to the options, restrictions and limitations imposed thereon pursuant
to this Revised Plan.

       

      (d) The
Committee shall determine in its discretion and specify in each agreement
evidencing an Award of Restricted Stock or Restricted Stock Units the effect, if
any, the termination of the Participant's employment with or performance of
services for the Company during the Restricted Period shall have on such
Award.

       

      (e) The
Committee may grant Associated Awards of Dividend Equivalents to Participants in
connection with Awards of Restricted Stock Units.  The Committee may
provide, at the date of grant or thereafter, that Dividend Equivalents shall be
paid or distributed when accrued or shall be deemed to have been reinvested in
additional Common Shares, or other investment vehicles as the Committee may
specify; provided that, unless otherwise determined by the Committee, Dividend
Equivalents shall be subject to all conditions and restrictions of the
underlying Restricted Stock Units to which they relate.

       

      Section
9. Performance
Grants.  The Committee may grant Awards of Performance
Grants.  The Award of a Performance Grant to a Participant will
entitle him or her to receive a specified amount determined by the Committee
(the "ACTUAL VALUE"), if the terms and conditions specified in this Revised Plan
and in the Award are satisfied.  Each Award of a Performance Grant
shall be subject to the applicable terms and conditions of this Section and this
Revised Plan, and to such other terms and conditions, including but not limited
to, restrictions upon any cash, Common Shares, Other Alpha Securities or
property, or other forms of payment, or any combination thereof, issued with
respect to the Performance Grant, as the Committee, in its discretion, shall
establish, and shall be evidenced in an agreement in such form and substance as
is determined by the Committee.

       

      (a) The
Committee shall determine the value or range of values of a Performance Grant to
be awarded to each Participant selected for an Award and whether or not such a
Performance Grant is granted in conjunction with an Associated
Award.  As determined by the Committee, the maximum value of each
Performance Grant (the "MAXIMUM VALUE") shall be:  (i) an amount
fixed by the Committee at the time the Award is made or amended thereafter,
(ii) an amount that varies from time to time based in whole or in part on
the then current value of the Common Shares, Other Alpha Securities or property,
or other securities or property, or any combination thereof or (iii) an
amount that is determinable from criteria specified by the
Committee.  Performance Grants may be issued in different classes or
series having different names, terms and conditions.

       

      (b) The award
period ("AWARD PERIOD") related to any Performance Grant shall be a period
determined by the Committee.  At the time each Award is made or within
the first 90 days of any performance period, the Committee shall establish
performance objectives to be attained within the Award Period as the means of
determining the Actual Value of such a Performance Grant.  The
performance objectives shall be based on such measure or measures of
performance, which may include, but need not be limited to, the performance of
the Participant, the Company or one or more of its divisions or units, or any
combination of the foregoing, as the Committee shall determine, and may be
applied on an absolute basis or be relative to industry or other indices or any
combination thereof.  The Actual Value of a Performance Grant shall be
equal to its Maximum Value only if the performance objectives are attained in
full, but the Committee shall specify the manner in which the Actual Value of
Performance Grants shall be determined if the performance objectives are met in
part.  Such performance measures, the Actual Value or the Maximum
Value, or any combination thereof, may be adjusted in any manner by the
Committee in its discretion at any time and from time to time during or as soon
as practicable after the Award Period, if it determines that such performance
measures, the Actual Value or the Maximum Value, or any combination thereof, are
not appropriate under the circumstances.

       

      (c) The
Committee shall determine in its discretion and specify in each agreement
evidencing a Performance Grant the effect, if any, the termination of the
Participant's employment with or performance of services for the Company during
the Award Period shall have on such Performance Grant.

       

      (d) The
Committee shall determine whether the conditions of a Performance Grant have
been met and, if so, shall ascertain the Actual Value of the Performance
Grant.  If the Performance Grant has no Actual Value, the Award and
such Performance Grant shall be deemed to have been canceled and the Associated
Award, if any, may be canceled or permitted to continue in effect in accordance
with its terms.  If the Performance Grant has any Actual Value
and:

       

      (i) was not
awarded in conjunction with an Associated Award, the Committee shall cause an
amount equal to the Actual Value of the Performance Grant earned by the
Participant to be paid to him or her or such Participant's Permitted Transferee
or Beneficiary; or

       

      (ii) was
awarded in conjunction with an Associated Award, the Committee shall determine,
in accordance with criteria specified by the Committee (A) to cancel the
Performance Grant, in which event no amount with respect to such Performance
Grant shall be paid to the Participant or his or her Permitted Transferee or
Beneficiary, and the Associated Award may be permitted to continue in effect in
accordance with its terms, (B) to pay the Actual Value of the Performance
Grant to the Participant or his or her Permitted Transferee or Beneficiary as
provided below, in which event the Associated Award may be canceled or
(C) to pay to the Participant or his or her Beneficiary, the Actual Value
of only a portion of the Performance Grants, in which event all or a portion of
the Associated Award may be permitted to continue in effect in accordance with
its terms or be canceled, as determined by the Committee.

       

      Such
determination by the Committee shall be made as promptly as practicable
following the end of the Award Period or upon the earlier termination of
employment or performance of services, or at such other time or times as the
Committee shall determine, and shall be made pursuant to criteria specified by
the Committee.

       

      (e) Payment
of any amount with respect to the Performance Grants that the Committee
determines to pay as provided above shall be made by Alpha as promptly as
practicable after the end of the Award Period or at such other time or times as
the Committee shall determine, and may be made in cash, Common Shares, Other
Alpha Securities or property, or other forms of payment, or any combination
thereof or in such other manner, as determined by the Committee in its
discretion; provided, that no Participant may receive more than $10,000,000 in
cash, Other Alpha Securities or property, or other forms of payment other than
Common Shares, with respect to Performance Grants in any one fiscal year of
Alpha.  Notwithstanding anything in this Section to the contrary, the
Committee may, in its discretion, determine and pay out the Actual Value of any
Performance Grant at any time during the Award Period, provided that such
authority or action does not result in an adverse tax impact on the Participant
holding such Performance Grant or on any other Participant.

       

      Section
10. [RESERVED]

       

      Section
11. [RESERVED]

       

      Section
12. Transferability
Of Awards.  A Participant's rights and interest under this
Revised Plan or any Award may not be assigned or transferred, hypothecated or
encumbered in whole or in part either directly or by operation of law or
otherwise, including, but not by way of limitation, execution, levy,
garnishment, attachment, pledge, bankruptcy or in any other manner; provided,
however, the Committee may permit such transfer to a Permitted Transferee; and
provided, further, that, unless otherwise permitted by the Code, any Incentive
Stock Option granted pursuant to this Revised Plan shall not be transferable
other than by will or by the laws of descent and distribution, and shall be
exercisable during the Participant's lifetime only by Participant or by such
Permitted Transferee.

       

      Section
13. Amendment Or
Substitution Of Awards Under This Revised Plan.  The terms of
any outstanding Award under this Revised Plan may be amended or modified from
time to time by the Committee in its discretion in any manner that it deems
appropriate (including, but not limited to, acceleration of the date of exercise
of any Award and/or payments under any Award) if the Committee could grant such
amended or modified Award under the terms of this Revised Plan at the time of
such amendment or modification; provided that no such amendment or modification
shall adversely affect in a material manner any right of a Participant under the
Award without his or her written consent.  Notwithstanding the
foregoing or any provision of an Award to the contrary, the Committee may at any
time (without the consent of any Participant) modify, amend or terminate any or
all of the provisions of an Award to the extent necessary to conform the
provisions of the Award with Section 162(m), Section 409A or any other provision
of the Code or other applicable law, the regulations issued thereunder or an
exception thereto, regardless of whether such modification, amendment or
termination of the Award shall adversely affect the rights of a
Participant.  The Committee may, in its discretion, permit holders of
Awards under this Revised Plan to surrender outstanding Awards in order to
exercise or realize the rights under other Awards, or in exchange for the grant
of new Awards, or require holders of Awards to surrender outstanding Awards as a
condition precedent to the grant of new Awards under this Revised
Plan.

       

      Section
14. Termination Of A
Participant.  For all purposes under this Revised Plan, the
Committee shall determine whether a Participant has terminated employment with,
or the performance of services for, the Company; provided, however, 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 Revised Plan.

       

      Section
15. Dilution And
Other Adjustments.  If any change in the outstanding Common
Shares occurs by reason of any stock split of or stock dividend on the Common
Shares, then the terms of any outstanding Awards shall be equitably adjusted in
the manner determined by the Committee without liability to any
Person.  If any change in the outstanding Common Shares occurs by
reason of any split-up, split-off, spin-off, recapitalization, merger,
consolidation, rights offering, reorganization, combination or exchange of
shares, sale by the Company of all of its assets, distribution to stockholders
(other than a stock dividend as provided above or a normal cash dividend on the
Common Shares), or other extraordinary or unusual event (other than a stock
split of the Common Shares as provided above), then the Committee shall
determine to terminate all outstanding Awards immediately prior to the
consummation of any such event or, alternatively, make an equitable adjustment
in the terms of any outstanding Award and/or the number of Common Shares
available for Awards.  Any such termination or adjustment made by the
Committee shall be final, conclusive and binding for all purposes of this
Revised Plan.  Unless otherwise provided by the Committee, all
outstanding Awards shall terminate immediately prior to the consummation of any
dissolution or liquidation of the Company.  Notwithstanding anything
to the contrary in this Revised Plan, except to the extent set forth in the
recitals to this Revised Plan, no adjustment shall be made under this
Section 15 as a result of the restructuring or distributions described in
the recitals.

       

      Section
16. Designation Of
Beneficiary By Participant.  A Participant may name a
beneficiary to receive any payment to which such Participant may be entitled
with respect to any Award under this Revised Plan in the event of his or her
death, on a written form to be provided by and filed with the Committee, and in
a manner determined by the Committee in its discretion (a
"BENEFICIARY").  The Committee reserves the right to review and
approve Beneficiary designations.  A Participant may change his or her
Beneficiary from time to time in the same manner, unless such Participant has
made an irrevocable designation.  Any designation of a Beneficiary
under this Revised Plan (to the extent it is valid and enforceable under
applicable law) shall be controlling over any other disposition, testamentary or
otherwise, as determined by the Committee in its discretion.  If no
designated Beneficiary survives the Participant and is living on the date on
which any amount becomes payable to such a Participant's Beneficiary, such
payment will be made to the legal representatives of the Participant's estate,
and the term "BENEFICIARY" as used in this Revised Plan shall be deemed to
include such Person or Persons.  If there are any questions as to the
legal right of any Beneficiary to receive a distribution under this Revised
Plan, the Committee in its discretion may determine that the amount in question
be paid to the legal representatives of the estate of the Participant, in which
event the Company, the Board, the Committee, the Designated Administrator (if
any), and the members thereof, will have no further liability to anyone with
respect to such amount.

       

      Section
17. Financial
Assistance.  If the Committee determines that such action is
advisable, the Company may assist any Participant in obtaining financing from
the Company (or under any program of the Company approved pursuant to applicable
law), or from a bank or other third party, on such terms as are determined by
the Committee, and in such amount as is required to accomplish the purposes of
this Revised Plan, including, but not limited to, to permit the exercise or
receipt of an Award and/or the payment of any taxes with respect to such
Award.  Such assistance may take any form that the Committee deems
appropriate, including, but not limited to, a direct loan from the Company, a
guarantee of the obligation by the Company or the maintenance by the Company of
deposits with such bank or third party.

       

      Section
18. Miscellaneous
Provisions.

       

      (a) Any
proceeds from Awards shall constitute general funds of Alpha.

       

      (b) No
fractional shares may be delivered under an Award, but in lieu thereof a cash or
other adjustment may be made as determined by the Committee in its
discretion.

       

      (c) No
Eligible Person or other Person shall have any claim or right to be granted an
Award under this Revised Plan.  Determinations made by the Committee
under this Revised Plan need not be uniform and may be made selectively among
Eligible Persons under this Revised Plan, whether or not such Eligible Persons
are similarly situated.  Neither this Revised Plan nor any action
taken under this Revised Plan shall be construed as giving any Eligible Person
any right to continue to be employed by or perform services for the Company, and
the right to terminate the employment of or performance of services by Eligible
Persons at any time and for any reason is specifically reserved.

       

      (d) No
Participant or other Person shall have any right with respect to this Revised
Plan, the Common Shares reserved for issuance under this Revised Plan or in any
Award, contingent or otherwise, until written evidence of the Award shall have
been delivered to the Participant and all the terms, conditions and provisions
of this Revised Plan and the Award applicable to such Participant (and each
Person claiming under or through such him or her) have been met.

       

      (e) No Common
Shares, Other Alpha Securities or property, other securities or property or
other forms of payment shall be issued under this Revised Plan with respect to
any Award unless counsel for Alpha shall be satisfied that such issuance will be
in compliance with applicable law and any applicable rules of any stock exchange
or other market quotation system on which Common Shares are listed.

       

      (f) It is the
intent of Alpha that this Revised Plan and Awards hereunder comply in all
respects with Rule 16b-3, Section 162(m), Section 409A or any other provision of
the Code or other applicable law, the regulations issued thereunder or an
exception thereto, and (i) the provisions of the Revised Plan shall be
administered, interpreted and construed in a manner necessary to comply with
Rule 16b-3, Section 162(m), Section 409A or any other provision of the Code or
other applicable law, the regulations issued thereunder or an exception thereto
(or disregarded to the extent the Revised Plan cannot be so administered,
interpreted or construed); and (ii) in no event shall any member of the
Committee or the Company (or its employees, officers or directors) have any
liability to any Participant (or any other Person) due to the failure of an
Award to satisfy the requirements of Rule 16b-3, Section 409A or any other
provision of the Code or other applicable law.

       

      (g) The
Company shall have the right to deduct from any payment made under this Revised
Plan any federal, state, local or foreign income or other taxes required by law
to be withheld with respect to such payment.  It shall be a condition
to the obligation of Alpha to issue Common Shares, Other Alpha Securities or
property, other securities or property, or other forms of payment, or any
combination thereof, upon exercise, settlement or payment of any Award under
this Revised Plan, that the Participant (or any Beneficiary or Person entitled
to act) pay to Alpha, upon its demand, such amount as may be required by the
Company for the purpose of satisfying any liability to withhold federal, state,
local or foreign income or other taxes.  If the amount requested is
not paid, Alpha may refuse to issue Common Shares, Other Alpha Securities or
property, other securities or property, or other forms of payment, or any
combination thereof.  Notwithstanding anything in this Revised Plan to
the contrary, the Committee may, in its discretion, permit an Eligible Person
(or any Beneficiary or Person entitled to act) to elect to pay a portion or all
of the amount requested by the Company for such taxes with respect to such
Award, at such time and in such manner as the Committee shall deem to be
appropriate (including, but not limited to, by authorizing Alpha to withhold, or
agreeing to surrender to Alpha on or about the date such tax liability is
determinable, Common Shares, Other Alpha Securities or property, other
securities or property, or other forms of payment, or any combination thereof,
owned by such Person or a portion of such forms of payment that would otherwise
be distributed, or have been distributed, as the case may be, pursuant to such
Award to such Person, having a Fair Market Value equal to the amount of such
taxes); provided, however, that any broker-assisted cashless exercise shall
comply with the requirements of Paragraph 35 of FASB Statement No. 123(R) and
any withholding satisfied through a net-settlement shall be limited to the
minimum statutory withholding requirements.

       

      (h) The
expenses of this Revised Plan shall be borne by the Company; provided, however,
the Company may recover from a Participant or his or her Beneficiary, heirs or
assigns any and all damages, fees, expenses and costs incurred by the Company
arising out of any actions taken by a Participant in breach of this Revised Plan
or any agreement evidencing such Participant's Award.

       

      (i) This
Revised Plan shall be unfunded.  The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Award under this Revised Plan, and rights to
the payment of Awards shall be no greater than the rights of the Company's
general creditors.

       

      (j) By
accepting any Award or other benefit under this Revised Plan, each Participant
(and each Person claiming under or through him or her) shall be conclusively
deemed to have indicated his or her acceptance and ratification of, and consent
to, any action taken under this Revised Plan by the Company, the Board, the
Committee or the Designated Administrator (if applicable).

       

      (k) The
appropriate officers of the Company shall cause to be filed any reports, returns
or other information regarding Awards under this Revised Plan or any Common
Shares issued pursuant to this Revised Plan as may be required by applicable law
and any applicable rules of any stock exchange or other market quotation system
on which Common Shares are listed.

       

      (l) The
validity, construction, interpretation, administration and effect of this
Revised Plan, and of its rules and regulations, and rights relating to this
Revised Plan and to Awards granted under this Revised Plan, shall be governed by
the substantive laws, but not the choice of law rules, of the State of
Delaware.

       

      (m) Records
of the Company shall be conclusive for all purposes under this Revised Plan or
any Award, unless determined by the Committee to be incorrect.

       

      (n) If any
provision of this Revised Plan or any Award is held to be illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining
provisions of this Revised Plan or any Award, but such provision shall be fully
severable, and this Revised Plan or Award, as applicable, shall be construed and
enforced as if the illegal or invalid provision had never been included in this
Revised Plan or Award, as applicable.

       

      (o) The terms
of this Revised Plan shall govern all Awards under this Revised Plan and in no
event shall the Committee have the power to grant any Award under this Revised
Plan that is contrary to any of the provisions of this Revised
Plan.  In the event of a conflict between any term or provision of
this Revised Plan and any term or provision of the Stockholders Agreement dated
as of the date of this Revised Plan among Alpha and certain of its stockholders,
the applicable terms and provisions of such Stockholders Agreement will govern
and prevail.

       

      (p) For
purposes of interpretation of this Revised Plan, the masculine pronoun includes
the feminine and the singular includes the plural wherever
appropriate.

       

      Section
19. Revised Plan
Amendment Or Suspension.  This Revised Plan may be amended or
suspended in whole or in part at any time from time to time by the
Committee.  No amendment of this Revised Plan shall adversely affect
in a material manner any right of any Participant with respect to any Award
previously granted without such Participant's written consent, except as
permitted under Section 13.  Notwithstanding the foregoing or any
provision of the Revised Plan to the contrary, the Committee may at any time
(without the consent of any Participant) modify, amend or terminate any or all
of the provisions of the Revised Plan to the extent necessary to conform the
provisions of the Revised Plan with Section 162(m), Section 409A or any other
provision of the Code or other applicable law, regulations issued thereunder or
an exception thereto, regardless of whether such modification, amendment or
termination of the Revised Plan shall adversely affect the rights of a
Participant.

       

      Section
20. Revised Plan
Termination.  This Revised Plan shall terminate upon the
earlier of the following dates or events to occur:

       

      (a) upon the
adoption of a resolution of the Board terminating this Revised Plan;
or

       

      (b) the tenth
anniversary of the Effective Date; provided, however, that the Board may, prior
to such date, extend the term of this Revised Plan for an additional period of
up to five years for the grant of Awards other than Incentive Stock
Options.

       

      No
termination of this Revised Plan shall materially alter or impair any of the
rights or obligations of any Participant, without his or her consent, under any
Award previously granted under this Revised Plan, except that subsequent to
termination of this Revised Plan, the Committee may make amendments or
modifications permitted under Section 13.

       

      Section
21. Effective
Date.  This Revised Plan shall be effective, and Awards may be
granted under this Revised Plan (as amended and restated), on or after
November 10, 2004, subject to the last paragraph of Section 3
hereof.

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      APPENDIX
A

       

      The
following terms shall have the meaning indicated:

       

      "ACTUAL
VALUE" has the meaning set forth in Section 9.

       

      "ALPHA"
shall mean Alpha Natural Resources, Inc., a Delaware corporation.

       

      "ASSOCIATED
AWARD" shall mean an Award granted concurrently or subsequently in conjunction
with another Award.

       

      "AWARD"
shall mean an award of rights to an Eligible Person under this Revised
Plan.

       

      "AWARD
PERIOD" has the meaning set forth in subsection 9(b).

       

      "BENEFICIARY"
has the meaning set forth in Section 16.

       

      "BOARD"
shall mean the board of directors of Alpha.

       

      "CODE"
shall mean the Internal Revenue Code of 1986, as it now exists or may be amended
from time to time, and the rules and regulations promulgated thereunder, as they
may exist or may be amended from time to time.

       

      "COMMITTEE"
shall mean the person or persons responsible for administering this Revised
Plan.  The Board shall constitute the Committee until the Board
appoints a Board Committee, after which time the Board Committee shall
constitute the Committee, provided, however, that at any time the Board may
designate itself as the Committee or designate itself to administer certain of
the Committee's authority under this Revised Plan, including administering
certain Awards under this Revised Plan.  The Board or the Board
Committee may designate a Designated Administrator to constitute the Committee
or to administer certain of the Committee's authority under this Revised Plan,
including administering certain Awards under this Revised Plan, subject to the
right of the Board or the Board Committee, as applicable, to revoke its
designation at any time and to make such designation on such terms and
conditions as it may determine in its discretion.  For purposes of
this definition, the "BOARD COMMITTEE" shall mean a committee of the Board
designated by the Board to administer this Revised Plan.  Except as
otherwise determined by the Board, the Board Committee (i) shall be
comprised of not fewer than three directors, (ii) shall meet any applicable
requirements under Rule 16b-3, including any requirement that the Board
Committee consist of "Non-Employee Directors" (as defined in Rule 16b-3),
(iii) shall meet any applicable requirements under Section 162(m),
including any requirement that the Board Committee consist of "outside
directors" (as defined in Treasury § 1.162-27(e)(3)(i) or any successor
regulation), and (iv) shall meet any applicable requirements of any stock
exchange or other market quotation system on which Common Shares are
listed.  For purposes of this definition, the "DESIGNATED
ADMINISTRATOR" shall mean one or more Company officers designated by the Board
or a Board Committee to act as a Designated Administrator pursuant to this
Revised Plan.  Except as otherwise determined by the Board, a
Designated Administrator shall only be appointed if Rule 16b-3 permits such
appointment and the exercise of any authority without adversely affecting the
ability of Awards to officers of Alpha to comply with the conditions for Rule
16b-3 or Section 162(m).  The resolutions of the Board or Board
Committee designating the authority of the Designated Administrator shall
(i) specify the total number of Common Shares subject to Awards that may be
granted pursuant to this Revised Plan by the Designated Administrator,
(ii) may not authorize the Designated Administrator to designate him or
herself as the recipient of any Awards pursuant to this Revised Plan and
(iii) shall otherwise comply with the requirements of the Delaware General
Corporation Law, including Section 157(c) thereunder.

       

      "COMPANY"
shall mean Alpha and any parent, subsidiary or affiliate of Alpha.

       

      "COMMON
SHARES" shall mean shares of common stock, par value $0.01 per share, of Alpha
and stock of any other class into which such shares may thereafter be
changed.

       

      "DIVIDEND
EQUIVALENTS" shall mean an Associated Award of cash or other Awards with a Fair
Market Value equal to the dividends which would have been paid on the Common
Shares underlying an outstanding Award of Restricted Stock Units had such Common
Shares been outstanding.

       

      "ELIGIBLE
PERSON(S)" shall mean those persons who are full or part-time employees of the
Company or other individuals who perform services for the Company, including,
without limitation, directors who are not employees of the Company and
consultants and independent contractors who perform services for the
Company.

       

      "EXCHANGE
ACT" shall mean the Securities Exchange Act of 1934, as it now exists or may be
amended from time to time, and the rules promulgated thereunder, as they may
exist or may be amended from time to time.

       

      "FAIR
MARKET VALUE" shall mean (i) with respect to the Common Shares, as of any date
(A) if the Company's Common Shares are listed on any established stock exchange,
system or market, the closing market price of the Common Shares as quoted in
such exchange, system or market on such date as reported in the Wall Street
Journal or such other source as the Committee deems reliable or (B) in the
absence of an established market for the Common Shares, as determined in good
faith by the Committee or (ii) with respect to property other than Common
Shares, the value of such property, as determined by the Committee, in its sole
discretion.

       

      "INCENTIVE
STOCK OPTION" shall mean a Stock Option that is an incentive stock option as
defined in Section 422 of the Code.  Incentive Stock Options are
subject, in part, to the terms, conditions and restrictions described in
Section 6.

       

      "MAXIMUM
VALUE" has the meaning set forth in subsection 9(a).

       

      "NONQUALIFIED
STOCK OPTION" shall mean a Stock Option that is not an incentive stock option as
defined in Section 422 of the Code.  Nonqualified Stock Options
are subject, in part, to the terms, conditions and restrictions described in
Section 6.

       

      "OTHER
ALPHA SECURITIES" shall mean Alpha securities (which may include, but need not
be limited to, unbundled stock units or components thereof, debentures,
preferred stock, warrants, securities convertible into Common Shares or other
property) other than Common Shares.

       

      "PARTICIPANT"
shall mean an Eligible Person to whom an Award has been granted under this
Revised Plan.

       

      "PERFORMANCE
GRANT" shall mean an Award subject, in part, to the terms, conditions and
restrictions described in Section 9, pursuant to which the recipient may
become entitled to receive cash, Common Shares, Other Alpha Securities or
property, or other forms of payment, or any combination thereof, as determined
by the Committee.

       

      "PERMITTED
TRANSFEREE" means (i) any person defined as an employee in the Instructions
to Registration Statement Form S-8 promulgated by the Securities and Exchange
Commission, as such Form may be amended from time to time, which persons
include, as of the date of adoption of this Revised Plan, (a) executors,
administrators or beneficiaries of the estates of deceased Participants,
guardians or members of a committee for incompetent former Participants, or
similar persons duly authorized by law to administer the estate or assets of
former Participants, and (b) Participants' family members who acquire
Awards from the Participant other than for value, including through a gift or a
domestic relations order.  For purposes of this definition, "FAMILY
MEMBER" includes any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, any person sharing the Participant's household
(other than a tenant or employee), a trust in which these persons have more than
fifty percent of the beneficial interest, a foundation in which these persons
(or the Participant) control the management of assets, and any other entity in
which these persons (or the Participant) own more than fifty percent of the
voting interests.  For purposes of this definition, neither (i) a
transfer under a domestic relations order in settlement of marital property
rights; nor (ii) a transfer to an entity in which more than fifty percent
of the voting or beneficial interests are owned by family members (or the
Participant) in exchange for an interest in that entity is considered a transfer
for "VALUE".

       

      "PERSON"
means any individual, firm, corporation, partnership, limited liability company,
trust, incorporated or unincorporated association, joint venture, joint stock
company, governmental body or other entity of any kind.

       

      "PURCHASED
OPTION" shall mean a Stock Option that is sold to an Eligible Person at a price
determined by the Committee.  Purchased Options are subject, in part,
to the terms, conditions and restrictions described in
Section 6.

       

      "RESTRICTED
PERIOD" has the meaning set forth in subsection 8(b).

       

      "RESTRICTED
STOCK" shall mean an Award of Common Shares that are issued subject, in part, to
the terms, conditions and restrictions described in Section 8.

       

      "RESTRICTED
STOCK UNITS" shall mean an Award of the right to receive either (as the
Committee determines) Common Shares or cash equal to the Fair Market Value of a
Common Share, issued subject, in part, to the terms, conditions and restrictions
described in Section 8.

       

      "REVISED
PLAN" shall mean this Alpha Natural Resources, Inc. 2004 Long-Term Incentive
Plan, as amended and restated on November 8, 2007.

       

      "RULE
16b-3" shall mean Rule 16b-3 promulgated by the Securities and Exchange
Commission under the Exchange Act and any successor rule.

       

      "SECTION 162(m)"
shall mean §162(m) of the Code, any rules or regulations promulgated thereunder,
as they may exist or may be amended from time to time, or any successor to such
section.

       

      “Section
409A” shall mean §409A of the Code, any rules or regulations promulgated
thereunder, as they may exist or may be amended from time to time, or any
successor to such section.

       

      "Section
422" shall mean §422 of the Code, any rules or regulations promulgated
thereunder, as they may exist or may be amended from time to time, or any
successor to such section.

       

      "STOCK
APPRECIATION RIGHT" shall mean an Award of a right to receive (without payment
to Alpha) cash, Common Shares, Other Alpha Securities or property, or other
forms of payment, or any combination thereof, as determined by the Committee,
based on the increase in the value of the number of Common Shares specified in
the Stock Appreciation Right.  Stock Appreciation Rights are subject,
in part, to the terms, conditions and restrictions described in
Section 7.

       

      "STOCK
OPTION" shall mean an Award of a right to purchase Common Shares.  The
term Stock Option shall include Nonqualified Stock Options, Incentive Stock
Options and Purchased Options.

       

      "TEN
PERCENT EMPLOYEE" shall mean an employee of Alpha or any parent or subsidiary of
Alpha who owns stock representing more than ten percent of the voting power of
all classes of stock of Alpha or any parent or subsidiary of Alpha.

       

      "TREASURY
REGULATION" shall mean a final, proposed or temporary regulation of the
Department of Treasury under the Code and any successor regulation.

       

      

       

       

      Revised:  11/8/07

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