Document:

Amended and Restated Western Stock Option Plan

 WESTERN COAL CORP. 

STOCK OPTION PLAN 
 (AMENDED AND RESTATED) 
  

 
  

	1.	NAME AND PURPOSE OF THE PLAN 

  

	1.1.	Name of the Plan 

 The
stock option plan constituted hereby for the directors, officers and employees of Western Coal Corp. (the “Company”) and its subsidiaries shall be known as the Stock Option Plan (Amended and Restated) (the “Plan”).
This Plan effective August 3, 2010 amends, restates and replaces the Stock Option Plan adopted on July 28, 2005, as amended. 
  

	1.2.	Purpose of the Plan 

 The
purpose of the Plan is to provide directors, officers and employees of the Company with the opportunity to participate in the profitability of the Company by granting to such individuals options to buy common shares of the Company in order to allow
them to participate in the long-term success of the Company and to promote a greater alignment with the interests of the Company’s shareholders. The plan is also intended to assist the Company in attracting and retaining key personnel with
superior experience and ability. 
  

	2.	INTERPRETATION 

  

	2.1.	Definitions 

 In this
Plan, the following terms shall have the following meanings: 
 “10% Shareholder” means any U.S. Participant who
owns, taking into account the constructive ownership rules set forth in Section 424(d) of the Code, more than 10% of the total combined voting power of all classes of shares of the Company (or of any Parent or Subsidiary). 

“1933 Act” means the United States Securities Act of 1933, as amended. 

“Affiliate” has the meaning ascribed thereto in the Toronto Stock Exchange Company Manual. 

“Associate” means an associate as defined in the Securities Act. 

“Blackout Period” means an interval of time during which the Company has determined, pursuant to applicable law or any
policy of the Company, that no 

 
director, officer or employee of the Company may trade any securities of the Company because they may be in possession of material undisclosed information. 

“Board” means the board of directors of the Company and any committee of the board of directors to which any or all
authority, rights, powers and discretion with respect to the Plan has been delegated. 
 “Cause” means any act,
omission or course of conduct recognized as cause or gross misconduct under applicable law, including, without limitation, embezzlement, theft, fraud, wilful failure to follow any lawful directive of the Company and wilful misconduct detrimental to
the interests of the Company. 
 “Change of Control” means: 

 

	 	(a)	a reorganization, amalgamation, merger or a plan of arrangement, other than solely involving the Company and one or more of the Affiliates, with respect to which all or
substantially all of the persons who were the beneficial owners of the voting securities of the Company immediately prior to such reorganization, amalgamation, merger or plan of arrangement do not, following such reorganization, amalgamation, merger
or plan of arrangement, beneficially own, directly or indirectly, more than 50 percent of the voting securities of the resulting entity on a fully-diluted basis; 

 

	 	(b)	a formal takeover bid or tender offer for the voting securities of the Company being completed (other than by Company or one or more of its Affiliates) as a result of
which the offeror and its Affiliates beneficially own, directly or indirectly, more than 50 per cent of the voting securities of the Company then outstanding; 

 

	 	(c)	the direct or indirect sale or other disposition (including through a reorganization, amalgamation, merger or plan of arrangement) to a person other than an Affiliate
of the Company of (x) more than 50 per cent of the voting securities of the Company or (y) all or substantially all of the Company’s consolidated assets; or 

 

	 	(d)	during any period of 24 consecutive months, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose
election or nomination for election was approved by at least a majority of the directors at the beginning of the period or whose appointment, election or nomination was previously so approved or recommended) ceasing for any reason to constitute at
least a majority of the Board; 

 “Code” means the U.S. Internal Revenue Code of 1986, as amended.

  
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 “Company” means Western Coal Corp. and its successors. 

“Disability” means any disability with respect to an Optionee, which the Board, in its sole and unfettered discretion,
considers likely to prevent permanently the Optionee from: 
  

	 	(a)	being employed or engaged by the Company, its Subsidiaries or another employer, in a position the same as or similar to that in which he was last employed or engaged by
the Company or its Subsidiaries; 

  

	 	(b)	acting as a director or officer of the Company or its Subsidiaries; or 

  

	 	(c)	engaging in any substantial gainful activity by reason of any medically determinable mental or physical impairment. 

The preceding definition of the term “Disability” is intended to comply with, and will be interpreted consistently with,
Sections 22(e)(3) and 422(c)(6) of the Code. 
 “Employee” means a person who is an employee of the Company
(or any Subsidiary) for the purposes of Section 422 of the Code. 
 “Exchange” means the Toronto Stock
Exchange or, if the Shares are not listed on the Toronto Stock Exchange, such other stock exchange on which the Shares are listed that in the opinion of the Board is the Company’s principal or “home” exchange. 

“Expiry Date” means the date set by the Board under Section 3.1 of the Plan, as the last date on which an Option may
be exercised by the Optionee. 
 “Fair Market Value” as of any date, means, with respect to any property
(including, without limitation, any Share), the fair market value, as of such date, of such property, determined by such methods or procedures as are established from time to time by the Board. Unless otherwise determined by the Board, the fair
market value of a Share as of a given date will be the closing sale price of the Shares on the Exchange (or, if such Shares are not then listed and posted for trading on the Exchange, on such stock exchange on which such Shares are listed and posted
for trading as may be selected for such purpose by the Board) on the trading day immediately preceding such date. 

“Grant Date” means the date specified in an Option Agreement as the date on which an Option is granted. 

“Incentive Stock Option” means an Option granted to a U.S. Participant that is intended to qualify as an “incentive
stock option” pursuant to Section 422 of the Code. 

  
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 “Income Tax Act” means the Income Tax Act (Canada), as amended, as
at the date hereof. 
 “Insider” means: 

 

	 	(a)	an insider as defined in the Securities Act, other than a person who is an insider solely by virtue of being a director or senior officer of a Subsidiary; and

  

	 	(b)	an Associate of any person who is an insider under subsection (a). 

 “Market Price” of Shares at any Grant Date means the closing price per Share on the Exchange for the last day Shares were traded prior to the Grant Date. 

“Nonqualified Stock Option” means an Option that is not an Incentive Stock Option. 

“Option” means an option to purchase Shares granted pursuant to this Plan. 

“Option Agreement” means an agreement, in a form to be prescribed by the Company from time to time, whereby the Company
grants to an Optionee an Option. 
 “Option Price” means the price per Share specified in an Option Agreement,
adjusted from time to time in accordance with the provisions of Section 5. 
 “Option Shares” means the
aggregate number of Shares that an Optionee may purchase under an Option. 
 “Optionee” means each director,
officer or employee of the Company granted an Option pursuant to this Plan and their heirs, executors and administrators. 

“Parent” means any company (other than the Company) in an unbroken chain of companies ending with the Company, if each
company in such chain (other than the Company) owns outstanding securities to which are attached more than 50% of the votes that may be cast to elect directors of one of the other corporations in such chain. The preceding definition of the term
“Parent” is intended to comply with, and will be interpreted consistently with, Section 424(e) of the Code. 

“Plan” means this Western Coal Corp. Stock Option Plan, as amended from time to time in accordance with the provisions
hereof. 
 “Securities Act” means the Securities Act (Ontario), as amended, as at the date hereof.

  
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 “Shares” means the common shares of the Company, eligible to be voted at a
meeting of shareholders of the Company, as constituted on the date of this Plan provided that, in the event of any adjustment pursuant to Section 5, “Shares” shall thereafter mean the shares or other property resulting from the events
giving rise to the adjustment. 
 “Subsidiary” means any corporation or company of which outstanding securities
to which are attached more than 50% of the votes that may be cast to elect directors thereof are held (provided that such votes are sufficient to elect a majority of such directors), other than by way of security only, by or for the benefit of the
Company and/or by or for the benefit of any other corporation or company in like relation to the Company, and includes any corporation or company in like relation to a Subsidiary. The preceding definition of the term “Subsidiary” is
intended to comply with, and will be interpreted consistently with, Section 424(f) of the Code and Rule 405 of the 1933 Act. 
 “Unissued Option Shares” means the number of Shares at a particular time that have been allotted for issuance upon the exercise of an Option but which have not been issued, as adjusted
from time to time in accordance with the provisions of Section 5, such adjustments to be cumulative. 
 “U.S.
Participant” means an Optionee who is a natural person that is a citizen of the United States or a resident of the United States, as defined in Section 7701(a)(30)(A) and Section 7701(b)(1) of the Code whose grant of Options under
this Plan would otherwise be subject to U.S. taxation under the Code or to the provisions of the U.S. federal and state securities laws. 
 “Vested” means that an Option has become exercisable in respect of a number of Option Shares by the Optionee pursuant to the terms of the Option Agreement. 

 

	2.2.	Number and Gender 

 This
Plan shall be read with all changes in number and gender required by the context. 
  

	2.3.	Sections 

 A reference to
a Section includes all subsections in that Section, unless the context otherwise requires. 
  

	2.4.	Currency 

 Unless the
context otherwise requires or the Board determines otherwise, all references to currency shall be to the lawful money of Canada. 

  
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	3.	GRANT OF OPTIONS AND ADMINISTRATION OF THE PLAN 

  

	3.1.	Option Terms 

  

	 	(a)	The Board may from time to time authorize the issue of Options to directors, officers and employees of the Company and its Subsidiaries on the terms and subject to the
conditions set out in this Plan and any additional terms and conditions imposed by the Company and set out in the Option Agreement as determined by the Board in its sole and unfettered discretion. 

 

	 	(b)	Notwithstanding any terms imposed by the Company, 

  

	 	(i)	the Option Price under each Option shall be not less than the Market Price on the Grant Date or such other minimum price as may be required by the Exchange; and

  

	 	(ii)	the Expiry Date for each Option shall be set by the Board at the time of issue of the Option and shall not be more than five years after the Grant Date;

  

	 	(c)	For greater certainty, the Board shall not be permitted to amend the Option Price except as set out in Section 5 of this Plan. 

 

	3.2.	Limits on Shares Issuable on Exercise of Options 

 Subject to Sections 5.1 and 6.2, 
  

	 	(a)	the maximum number of Shares that may be issuable under the Plan, together with the Shares issuable pursuant to all of the Company’s other previously established
and outstanding or proposed security based compensation arrangements, shall be a number equal to 8% of the number of issued and outstanding Shares on a non-diluted basis at any time; 

 

	 	(b)	without the prior approval of the shareholders of the Company, the number of Shares that may be issuable to Insiders under the Plan, together with the Shares issuable
pursuant to all of the Company’s other previously established and outstanding or proposed security based compensation arrangements, in aggregate, shall not exceed 8% of the total number of issued and outstanding Shares on a non-diluted basis;

  

	 	(c)	 without the prior approval of the shareholders of the Company, the number of Shares which are issued to Insiders under the Plan, together with the
Shares issuable pursuant to all of the Company’s other previously established and outstanding or proposed security based compensation 

  
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arrangements, within a one-year period, in aggregate shall not exceed 8% of the total number of issued and outstanding Shares on a non-diluted basis; and 

 

	 	(d)	without the prior approval of the shareholders of the Company, the number of Shares that may be issuable to non-employee directors under the Plan, together with the
Shares issuable pursuant to all of the Company’s other previously established and outstanding or proposed security based compensation arrangements, in aggregate, shall not exceed the lesser of (i) 1% of the total number of issued and
outstanding Shares on a non-diluted basis; and (ii) an annual equity award value of $100,000 per director. 

For the purposes of this Section 3.2, Shares issued pursuant to an entitlement granted prior to the grantee becoming an Insider may
be excluded in determining the number of Shares issuable to Insiders. For the purposes of this Section 3.2, the total number of “issued and outstanding Shares” is determined on the basis of the number of Shares that are issued and
outstanding immediately prior to the grant of Options in question. 
  

	3.3.	Option Agreements 

 A
written agreement shall be entered into between the Company and each Optionee, which agreement shall set out the Option Price and the terms and conditions on which the Option may be exercised, all in accordance with the provisions of the Plan. The
agreement shall be in such form as the Board may from time to time approve and may contain such terms as may be considered necessary in order that the Option will comply with any provisions respecting stock options in the income tax or other laws in
force in any country or jurisdiction in which the person to whom the Option is granted may from time to time be a resident or citizen. 
  

	3.4.	Authority of the Board 

Subject only to the express provisions of the Plan, the Board shall have, and hereby is specifically granted, the sole and unfettered
authority: 
  

	 	(a)	to grant Options to directors, officers and employees and to determine the terms of, and the limitations, restrictions and conditions upon, such grant;

  

	 	(b)	to authorize any officer to execute and deliver any Option Agreement, notice, commitment or document and to do any other act as contemplated by the Plan for and on
behalf of the Company; 

  
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	 	(c)	to interpret the Plan and to adopt, amend and rescind such administrative guidelines and other rules and regulations relating to the Plan as it may from time to time
deem advisable; 

  

	 	(d)	to make all other determinations and perform all such other actions as the Board deems necessary or advisable to implement and administer the Plan; and

  

	 	(e)	to delegate to the corporate governance, nominating and compensation committee or any other committee of the Board, on such terms as the Board in its discretion
determines, all or any part of the authority of the Board hereunder to administer and implement the Plan. 

  

	3.5.	Discretion of the Board 

The determinations of the Board under the Plan need not be uniform and may be made by the Board selectively among directors, officers and
employees of the Company who receive, or are eligible to receive, grants of Options under the Plan, whether or not such directors, officers and employees are similarly situated as to office, length of service, salary or any other factor. The Board
may, in its discretion, authorize the granting of additional Options to an Optionee before an existing Option has terminated. 
  

	3.6.	Interpretation of the Plan 

Except as set forth in Section 5.4, the interpretation and construction of any provision of the Plan by the Board shall be final and
conclusive. Administration of the Plan shall be the responsibility of the appropriate officers of the Company and the Company shall pay all costs in respect thereof. All guidelines, rules, regulations, decisions and interpretations of the Board
respecting the Plan, the Option Agreement or the Options shall be binding and conclusive on the Company and on all Optionees and their respective legal personal representatives. 

 

	4.	EXERCISE OF OPTIONS 

  

	4.1.	When Options May be Exercised 

 Subject to this Section 4, an Option may be exercised to purchase any number of Option Shares up to the number of Unissued Option Shares that have Vested at any time after the Grant Date up to the
close of business on the Expiry Date in the location where the Company has its principal executive office and shall not be exercisable thereafter. 

  
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	4.2.	Manner of Exercise 

 The
Option shall be exercisable by delivering, prior to the close of business on the Expiry Date, to the Company at the principal executive office of the Company, a notice specifying the number of Option Shares in respect of which the Option is
exercised together with payment in full of the Option Price for each such Option Share. Upon receipt by the Company of such notice and payment, there will be a binding contract for the issue of the Option Shares in respect of which the Option is
exercised, on and subject to the provisions of the Plan. Delivery of the Optionee’s cheque payable to the Company in the amount of the Option Price shall constitute payment of the Option Price unless the cheque is not honoured upon presentation
in which case the Option shall not have been validly exercised. All Option Shares subscribed for on exercise of the Option shall be paid in full at the time of subscription. Under no circumstances shall the Company be obliged to issue any fractional
Shares upon the exercise of an Option. To the extent that an Optionee would otherwise have been entitled to receive, on the exercise or partial exercise of an Option, a fraction of a Share in any year, the Option shall be cancelled with respect to
such fraction. 
  

	4.3.	Vesting of Option Shares 

The Board may, in its sole discretion, determine: (i) the time during which Options shall vest; (ii) the method of vesting; or
(iii) that no vesting restriction shall exist. In the absence of any determination by the Board or provision in the Option Agreement to the contrary, Options will vest and be exercisable as to one-third of the total number of Option Shares
subject to the Options on each of the date of grant and the first and second anniversaries of the date of grant (computed in each case to the nearest whole Option Share). Notwithstanding the foregoing, the Board may, in its sole discretion at any
time or in the Option Agreement in respect of any Options granted, accelerate or provide for the acceleration of vesting of Options previously granted. 
  

	4.4.	Termination of Employment or Affiliation 

 If an Optionee ceases to be a director, officer or employee of the Company, his or her Option shall be exercisable as follows: 

 

	 	(a)	Death or Disability. If the Optionee ceases to be a director, officer or employee of the Company or a Subsidiary, due to his or her death or Disability, the
Option then held by the Optionee shall be exercisable to acquire Unissued Option Shares that have Vested at the time of death or Disability at any time up to but not after the earlier of: 

 

	 	(i)	365 days after the date of death or Disability; and 

  
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	 	(ii)	the Expiry Date; 

  

	 	(b)	Termination for Cause. If the Optionee ceases to be a director, officer or employee of the Company or a Subsidiary as a result of termination for Cause, any
outstanding Option held by such Optionee on the date of such termination, whether in respect of Option Shares that are Vested or not, shall be cancelled as of the date of delivery of written notice of termination (and specifically without regard to
the date any period of reasonable notice, if any, would expire); 

  

	 	(c)	Retirement, Voluntary Resignation or Termination other than for Cause. If the Optionee ceases to be a director, officer or employee of the Company or a
Subsidiary due to his or her retirement, due to his or her voluntary resignation or due to the termination of his or her employment by the Company for reasons other than Cause, the Option then held by the Optionee shall be exercisable, subject to
subsection (d) below, to acquire Unissued Option Shares that have Vested at the time of retirement, resignation or termination for reasons other than Cause, at any time up to but not after the earlier of: 

 

	 	(i)	the Expiry Date; or 

  

	 	(ii)	6 months after the Optionee ceases active employment with the Company or a Subsidiary; and 

 

	 	(d)	Blackout Period Allowance. For greater certainty, if at the time the Optionee ceases to be a director, officer or employee due to retirement, voluntary
resignation or termination by the Company for reasons other than Cause, there is a Blackout Period, or if at any time during the period of time set out in Sections 4.4(a)(i) and 4.4(c)(ii), there is a Blackout Period, then in calculating the
time that the Option then held by the Optionee shall be exercisable to acquire any Unissued Option Shares that have Vested, the period of time set forth in the respective section shall be in addition to any such Blackout Period.

 For greater certainty, an Option that had not become Vested in respect of any Unissued Option Shares at the time
that the relevant events referred to in Sections 4.4(a), 4.4(b), 4.4(c) or 0 occurred, shall not be or become exercisable in respect of such Unissued Option Shares and shall be cancelled. 

 

	4.5.	Effect of a Take-Over Bid 

If a bona fide offer (an “Offer”) for Shares is made to the Optionee or to shareholders of the Company generally
or to a class of shareholders which 

  
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includes the Optionee, which Offer, if accepted in whole or in part, would result in the offeror becoming a control person of the Company, within the meaning of the Securities Act, the
Company shall, immediately upon receipt of notice of the Offer, notify each Optionee of full particulars of the Offer, whereupon all Options will become Vested and each Option may be exercised in whole or in part by the Optionee so as to permit the
Optionee to tender the Option Shares received upon such exercise pursuant to the Offer. However, if: 
  

	 	(a)	the Offer is not completed within the time specified therein; or 

  

	 	(b)	all of the Option Shares tendered by the Optionee pursuant to the Offer are not taken up or paid for by the offeror in respect thereof, 

then the Option Shares received upon such exercise, or in the case of Section 4.5(b) the Option Shares that are not taken up and paid
for, shall be returned by the Optionee to the Company and reinstated as authorized but Unissued Option Shares and, with respect to such returned Option Shares, the Option shall be reinstated as if it had not been exercised and the terms for such
Options becoming Vested shall be reinstated pursuant to Section 4.3. If any Options are returned to the Company under this Section 4.5, the Company shall immediately refund the exercise price to the Optionee for such Option Shares.

  

	4.6.	Acceleration of Expiry Date 

 If at any time when an Option granted under the Plan remains unexercised with respect to any Unissued Option Shares, an Offer is made by an offeror, the Board may, upon notifying each Optionee of full
particulars of the Offer, declare that all Options granted under the Plan be Vested and accelerate the Expiry Date for the exercise of all unexercised Options granted under the Plan so that all Options will either be exercised or expire prior to the
date upon which Shares must be tendered pursuant to the Offer. 
  

	4.7.	Effect of a Change of Control 

 Notwithstanding any other provision of this Plan, if there takes place a Change of Control, all issued and outstanding Options shall be exercisable (whether or not then vested) immediately prior to the
time such Change of Control takes place and shall terminate on the 180th day after the occurrence of such Change of Control, or at such earlier time as may be established by the Board, in its sole discretion, prior to the time such Change of Control takes place. 

  
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	4.8.	Exclusion from Severance Allowance, Retirement Allowance or Termination Settlement 

If the Optionee retires, resigns or is terminated from employment or engagement with the Company or any Subsidiary, the loss or
limitation, if any, pursuant to the Option Agreement with respect to the right to purchase Option Shares which were not Vested at that time or which, if Vested, were cancelled, shall not give rise to any right to damages and shall not be included in
the calculation of nor form any part of any severance allowance, retiring allowance or termination settlement of any kind whatsoever in respect of such Optionee. 
  

	4.9.	Shares Not Acquired 

 Any
Unissued Option Shares not acquired by an Optionee under an Option, which have expired or have been cancelled, may be made the subject of a further Option grant pursuant to the provisions of the Plan. 

 

	4.10.	Right to Participate in New Issues 

 To the extent that shareholders of the Company are entitled to participate in new issues of Shares, an Optionee, with respect to Vested Options held by such Optionee, shall not be entitled to participate
in respect of such Vested Options, unless such Optionee first exercises the Vested Options and converts such Vested Options to Option Shares in accordance with the terms of the Plan. 

 

	4.11.	Share Appreciation Rights 

An Optionee may, rather than exercise any Option which such Optionee is entitled to exercise under the Plan, elect to terminate such
Option, in whole or in part, and elect either: 
  

	 	(a)	to receive the number of Shares, disregarding fractions, which, when multiplied by the fair value of a Share (which shall be the closing price of the Shares on the
Exchange for the trading day immediately preceding the date of termination of the Option pursuant to this Section 4.11), have a value equal to the product of the number of Option Shares to which the Option so terminated relates multiplied by
the difference between the fair value of a Share, determined as provided above, and the Option Price of the Option so terminated; or 

  

	 	(b)	 with the consent of the Company, to receive a cash payment, payable by cheque, equal to the product of the number of Option Shares to which the Option
so terminated relates multiplied by the difference between the fair value of a Share (which shall be the closing price of the Shares on the Exchange for the trading day immediately preceding the date of

  
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termination of the Option pursuant to this Section 4.11) and the Option Price of the Option so terminated. 

 

	5.	ADJUSTMENT OF OPTION PRICE AND NUMBER OF OPTION SHARES 

  

	5.1.	Share Reorganization 

Whenever the Company issues Shares to all or substantially all holders of Shares by way of a stock dividend or other distribution, or
subdivides all outstanding Shares into a greater number of Shares, or combines or consolidates all outstanding Shares into a lesser number of Shares (each of such events being a “Share Reorganization”), then effective immediately
after the effective date for such Share Reorganization for each Option: 
  

	 	(a)	the Option Price will be adjusted to a price per Option Share which is the product of: 

 

	 	(i)	the Option Price in effect immediately before that effective date; and 

  

	 	(ii)	a fraction the numerator of which is the total number of Shares outstanding on that effective date before giving effect to the Share Reorganization, and the denominator
of which is the total number of Shares that are or would be outstanding immediately after such effective date after giving effect to the Share Reorganization; and 

 

	 	(b)	the number of Unissued Option Shares will be adjusted by multiplying (i) the number of Unissued Option Shares immediately before such effective date by (ii) a
fraction which is the reciprocal of the fraction described in Section 5.1(a)(ii). 

  

	5.2.	Special Distribution 

Subject to the prior approval of the Exchange, whenever the Company issues by way of a dividend or otherwise distributes to all or
substantially all holders of Shares: 
  

	 	(a)	shares of the Company, other than Shares; 

  

	 	(b)	evidences of indebtedness; 

  

	 	(c)	any cash or other assets, excluding cash dividends (other than cash dividends which the Board has determined to be outside the normal course); or

  

	 	(d)	rights, options or warrants, 

  
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 then to the extent that such dividend or distribution does not constitute a Share
Reorganization (any of such non-excluded events being a “Special Distribution”), and effective immediately after the effective date at which holders of Shares are determined for purposes of the Special Distribution, for each Option
the Option Price will be reduced, and the number of Unissued Option Shares will be correspondingly increased, by such amount, if any, as is determined by the Board in its sole and unfettered discretion to be appropriate in order to properly reflect
any diminution in value of the Shares as a result of such Special Distribution. 
  

	5.3.	Corporate Organization 

Whenever there is: 
  

	 	(a)	a reclassification of outstanding Shares, a conversion of Shares into other shares or securities, or any other capital reorganization of the Company, other than as
described in Sections 5.1 or 5.2; 

  

	 	(b)	a consolidation, merger or amalgamation of the Company with or into another Company resulting in a reclassification of outstanding Shares into other shares or
securities or a change of Shares into other shares or securities; or 

  

	 	(c)	a transaction whereby all or substantially all of the Company’s undertaking and assets become the property of another Company, 

(any such event being a “Corporate Reorganization”) 

the Optionee will have an option to purchase (at the times, for the consideration and subject to the terms and conditions set out in the
Plan) and will accept on the exercise of such option, in lieu of the Unissued Option Shares which he or she would otherwise have been entitled to purchase, the kind and amount of shares or other securities or property that he or she would have been
entitled to receive as a result of the Corporate Reorganization if, on the effective date thereof, he or she had been the holder of all Unissued Option Shares or, if appropriate, as otherwise determined by the Board. 

 

	5.4.	Determination of Option Price and Number of Unissued Option Shares 

 If any questions arise at any time with respect to the Option Price or number of Unissued Option Shares deliverable upon exercise of an Option following a Share Reorganization, Special Distribution or
Corporate Reorganization, such questions shall be conclusively determined by the Company’s auditors or, if the Company’s auditors decline to so act, any other firm of nationally or internationally recognized chartered accountants in Canada
that the Board may designate and 

  
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who will have access to all appropriate records, and such determination will be binding upon the Company and all Optionees. 

 

	5.5.	Compliance with Regulatory Authorities 

 Notwithstanding Sections 5.1, 5.2 or 5.3, in the event of any reorganization (including, without limitation, consolidation, sub-division, reduction or return of the issued capital of the Company), on or
prior to the Expiry Date, the rights of the Optionee will be changed to the extent necessary at the time of such reorganization, in such manner as determined by the Board, to ensure compliance with the policies of the Exchange that apply to a
reorganization of capital at the time of such reorganization. For greater certainty, any adjustment to the Option Price or the number of Unissued Option Shares purchasable under the Plan pursuant to the operation of any one of Sections 5.1, 5.2 or
5.3 is subject to the approval of the Exchange and any other governmental authority having jurisdiction. 
  

	6.	U.S. PROVISIONS 

  

	6.1.	Issuance of Shares to U.S. Participant 

  

	 	(a)	Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such Shares shall comply with all relevant
provisions of law, including, without limitation, any applicable state securities laws, the 1933 Act, the rules and regulations thereunder and the requirements of any stock exchange or automated inter-dealer quotation system of a registered national
securities association upon which such Shares may then be listed, and such issuance shall be further subject to the approval of counsel for the Company with respect to such compliance, including the availability of an exemption from registration for
the issuance and sale of such Shares. The inability of the Company to obtain from any regulatory body the authority deemed by the Company to be necessary for the lawful issuance and sale of any Shares under the Plan, or the unavailability of an
exemption from registration for the issuance and sale of any Shares under the Plan, shall relieve the Company of any liability with respect to the non-issuance or sale of such Shares. 

 

	 	(b)	 If the Shares issuable upon exercise of the Options have not been registered under the 1933 Act, as a condition to the exercise of an Option, the
Company may require the participant to represent and warrant in writing at the time of such exercise that the Shares are restricted Shares, that the Shares are being purchased only for investment and without any then present intention to sell or
distribute such Shares, and may require any other representation required in accordance with any applicable state 

  
 15 

	 	 
securities laws, the 1933 Act and the rules and regulations thereunder. At the option of the Company, a stop-transfer order against such Shares may be placed on the shareholder register
and records of the Company, and a legend indicating that the Share(s) may not be pledged, sold or otherwise transferred unless an opinion of counsel is provided stating that such transfer is not in violation of any applicable law or regulation, may
be stamped on the certificates representing such Shares in order to assure an exemption from registration. The Company also may require such other documentation and representations as may from time to time be necessary to comply with federal and
state securities laws or as may be required by the Option Agreement. The Company has no obligation to undertake registration of Options or the Shares issuable upon the exercise of Options. 

 

	6.2.	Incentive Stock Options 

Notwithstanding provisions of the Plan to the contrary, the following provisions shall apply to the granting of Incentive Stock Options.

  

	 	(a)	Maximum Number of Shares for Incentive Stock Options. Notwithstanding any other provision of this Plan to the contrary, the aggregate number of Shares available
for Incentive Stock Options is 2,000,000, subject to adjustment pursuant to Section 5 of this Plan and subject to the provisions of Sections 422 and 424 of the Code. 

 

	 	(b)	Designation of Options. Each Option Agreement with respect to an Option granted to a U.S. Participant shall specify whether the related Option is an Incentive
Stock Option or a Nonqualified Stock Option. If no such specification is made in the Option Agreement, the related Option will be a Nonqualified Stock Option. 

 

	 	(c)	Special Requirements for Incentive Stock Options. In addition to the other terms and conditions of this Plan (and notwithstanding any other term or condition of
this Plan to the contrary, which shall take precedence over this Section 6.2(c) in the event of any conflict between such Sections), the following limitations and requirements will apply to an Incentive Stock Option: 

 

	 	(i)	An Incentive Stock Option may be granted only to an Employee. 

  

	 	(ii)	 The aggregate Fair Market Value of the Shares (determined as of the applicable Grant Date) with respect to which Incentive Stock Options are
exercisable for the first time by any U.S. Participant during any calendar year (pursuant to this Plan and all other plans of the Company and of any Parent or Subsidiary) will not exceed

  
 16 

	 	 
US$100,000 or any other limitation subsequently set forth in Section 422(d) of the Code. 

  

	 	(iii)	The exercise price per Share payable upon exercise of an Incentive Stock Option will be not less than 100% of the Fair Market Value of a Share on the applicable Grant
Date; provided, however, that the exercise price per Share payable upon exercise of an Incentive Stock Option granted to a U.S. Participant who is a 10% Shareholder on the applicable Grant Date will be not less than 110% of the Fair Market
Value of a Share on the applicable Grant Date. 

  

	 	(iv)	No Incentive Stock Option may be granted more than ten years after the earlier of (i) the date on which this Plan is adopted by the Board or (ii) the date on
which this Plan is approved by the shareholders of the Company. 

  

	 	(v)	An Incentive Stock Option will terminate and no longer be exercisable no later than five years after the applicable Grant Date. 

 

	 	(vi)	If a U.S. Participant who has been granted an Incentive Stock Option ceases to be an Employee, the Option Agreement with respect to such Incentive Stock Option may
provide that it is exercisable as follows: 

  

	 	(A)	If a U.S. Participant who has been granted an Incentive Stock Option ceases to be an Employee due to the death of such U.S. Participant, such Incentive Stock Option may
be exercised (to the extent such Incentive Stock Option was exercisable on the date of death) by the estate of such U.S. Participant, or by any person to whom such Incentive Stock Option was transferred in accordance with Section (c)(viii) below,
for a period of 365 days after the date of death (but in no event beyond the term of such Incentive Stock Option). 

  

	 	(B)	If a U.S. Participant who has been granted an Incentive Stock Option ceases to be an Employee due to the Disability of such U.S. Participant, such Incentive Stock
Option may be exercised (to the extent such Incentive Stock Option was exercisable on the date of Disability) by such U.S. Participant for a period of 6 months after the date of Disability (but in no event beyond the term of such Incentive Stock
Option). 

  

	 	(C)	 If a U.S. Participant who has been granted an Incentive Stock Option ceases to be an Employee due to termination for cause,

  
 17 

	 	 
such Incentive Stock Option will terminate and become null and void. 

  

	 	(D)	If a U.S. Participant who has been granted an Incentive Stock Option ceases to be an Employee for any reason other than the death or Disability of such U.S. Participant
or termination for cause, such Option may be exercised (to the extent such Option was exercisable on the date of termination) by such U.S. Participant for a period of 6 months after the date of termination (but in no event beyond the term of such
Option). 

  

	 	(E)	For purposes of this Section 6.2(c)(vi) and any option agreement relating to an Incentive Stock Option issued to a U.S. Participant, the employment of a U.S.
Participant who has been granted an Incentive Stock Option will not be considered interrupted or terminated upon (a) sick leave, military leave or any other leave of absence approved by the Board that does not exceed 6 months in the aggregate;
provided, however, that if reemployment upon the expiration of any such leave is guaranteed by contract or applicable law, such 6-month limitation will not apply, or (b) a transfer from one office of the Company (or of any Subsidiary) to
another office of the Company (or of any Subsidiary) or a transfer between the Company and any Subsidiary. 

  

	 	(vii)	An Incentive Stock Option granted to a U.S. Participant may be exercised during such U.S. Participant’s lifetime only by such U.S. Participant.

  

	 	(viii)	An Incentive Stock Option granted to a U.S. Participant may not be transferred, assigned, pledged, hypothecated or otherwise disposed of by such U.S. Participant,
except by will or by the laws of descent and distribution. 

  

	 	(ix)	In the event that this Plan is not approved by the shareholders of the Company within 12 months before or after the date on which this Plan is adopted by the Board, any
Incentive Stock Option granted under this Plan will automatically be deemed to be a Nonqualified Stock Option. 

  

	7.	MISCELLANEOUS 

  

	7.1.	Non-Canadian Optionees 

  
 18 

 In order to assure the viability of Options granted to Optionees employed or resident in
countries other than Canada, the Board may provide for such additional or varied terms in the Option Agreements entered into with such Optionees as it may consider necessary or appropriate to accommodate differences in local law, tax policy or
custom, provided however that no such supplemental or varied term shall amend the terms of the Plan or an Option in a manner requiring shareholder approval under Section 7.6 hereof unless such shareholder approval is obtained. 

 

	7.2.	Right to Employment 

Neither this Plan nor any of the provisions hereof shall confer upon any Optionee any right with respect to employment, engagement or
appointment or continued employment, engagement or appointment with the Company or any Subsidiary or interfere in any way with the right of the Company or any Subsidiary to terminate such employment, engagement or appointment. 

 

	7.3.	Related Rights and Other Benefit Plans 

 No Optionee shall have any of the rights of a shareholder of the Company with respect to any Option Shares (including, without limitation, voting rights or any right to receive dividends, warrants or
rights under any rights offering) until such Option Shares have been issued to such Optionee upon exercise of the Option and the Optionee has made full payment to the Company. Participation in the Plan shall not affect a director’s,
officer’s or employee’s eligibility to participate in any other benefit or incentive plan of the Company. The grant of any Option pursuant to this Plan shall not obligate the Company to make any benefit available to a director, officer or
employee under any other plan of the Company unless otherwise specifically provided for in such plan. 
  

	7.4.	Necessary Approvals 

 The
Plan shall be effective only upon the approval of the shareholders of the Company. The obligation of the Company to sell and deliver Option Shares in accordance with the Plan is subject to the approval of the Exchange, the London Stock Exchange and
any other regulatory body having authority over the Company, the Plan or the shareholders of the Company. If any Option Shares cannot be issued to any Optionee for any reason, including, without limitation, the failure to obtain such approval, then
the obligation of the Company to issue such Option Shares shall terminate and any Option Price paid by an Optionee to the Company shall be immediately refunded to the Optionee by the Company. 

  
 19 

	7.5.	Taxes 

 As a condition of
and prior to participation in the Plan, each Optionee authorizes the Company to withhold from any amount otherwise payable to him or her any amounts required by any taxing authority to be withheld for taxes of any kind as a consequence of his or her
participation in the Plan. The Company shall also have the right in its sole discretion to satisfy any such liability for withholding or other required deduction amounts by requiring the Optionee to complete a sale in respect of such number of
Option Shares, which have been issued and would otherwise be delivered to the Optionee under the Plan, and any amount payable from such sale will first be paid to the Company to satisfy any liability for withholding. The Company may require an
Optionee, as a condition of participation in the Plan, to pay or reimburse the Company for any cost incurred by the Company as a result of the participation by the Optionee in the Plan. 

 

	7.6.	Amendments to the Plan 

  

	 	(a)	The Board may from time to time, subject to applicable law and to the prior approval, if required, of the Exchange or any other regulatory body having authority over
the Company, the Plan or the shareholders of the Company, suspend, terminate or discontinue the Plan at any time. 

  

	 	(b)	The Board may amend or revise the terms of the Plan or of any Option granted under the Plan and the Option Agreement relating thereto at any time without the consent of
the participants provided that such amendment shall: 

  

	 	(i)	not adversely alter or impair any Option previously granted except as permitted by the adjustment provisions of Section 5; 

 

	 	(ii)	be subject to any regulatory approvals or regulatory requirements including, where required, the approval of the Exchange and the London Stock Exchange; and

  

	 	(iii)	be subject to shareholder approval, where required by law or the requirements of the Exchange or the London Stock Exchange, provided that shareholder approval shall not
be required for the following amendments and the Board may make any of the following changes: 

  

	 	A.	amendments of a typographical, grammatical, clerical or administrative nature or which are required to comply with regulatory requirements; 

 

	 	B.	a change to the vesting provisions of the Plan or any Option; 

  
 20 

	 	C.	a change to the termination provisions of any Option that does not entail an extension beyond the original expiration date (as such date may be extended by virtue of
Section 4.4(d) for a Blackout Period); and 

  

	 	D.	subject to Section 7.6(d)(iv), a change to the eligible participants of the Plan. 

 

	 	(c)	Notwithstanding this Section 7.6, the Board shall not be permitted to amend the Option Price except as set out in Section 5 of this Plan. If the Plan is
terminated, the provisions of the Plan and any administrative guidelines and other rules and regulations adopted by the Board and in force on the date of termination will continue in effect as long as any Option or any rights pursuant thereto remain
outstanding and, notwithstanding the termination of the Plan, the Board shall remain able to make such amendments to the Plan or the Options as they would have been entitled to make if the Plan were still in effect. 

 

	 	(d)	The Board, absent prior approval of the shareholders of the Company and of the Exchange or any other regulatory body having authority over the Company, will not be
entitled to: 

  

	 	(i)	increase the maximum percentage of Shares issuable by the Company pursuant to the Plan or the maximum number of Shares issuable on exercise of Incentive Stock Options;

  

	 	(ii)	reduce the Exercise Price either directly or indirectly by means of a cancellation of an Option and the reissue of a similar Option; 

 

	 	(iii)	extend the Expiry Date, other than pursuant to the provisions of the Plan; 

 

	 	(iv)	make a change to (A) the class of eligible participants that would have the potential of broadening or increasing participation by Insiders or non-employee
directors; (B) to the Employees (or class of Employees) eligible to receive Incentive Stock Options; or (C) that would otherwise be to the advantage of the participants in the Plan; 

 

	 	(v)	amend the Plan in order to permit Options to be transferable or assignable other than for normal estate settlement purposes; or 

 

	 	(vi)	amend this Section 7.6(d). 

  
 21 

	7.7.	Agreement of Optionee 

Each grant of an Option under the Plan shall be subject to the requirement that if at any time the Board shall determine that any
agreement, undertaking or other action or co-operation on the part of an Optionee, including in respect to a disposition of the Option Shares, is necessary or desirable as a condition of, or in connection with (a) the listing, registration or
qualification of the Shares subject to the Plan upon any stock exchange or under the laws of any applicable jurisdiction, or (b) obtaining a consent or approval of any governmental or other regulatory body, the exercise of such Option and the
issue of Option Shares thereunder may be deferred in whole or in part by the Board until such time as the agreement, undertaking or other action or co-operation shall have been obtained in a form and on terms acceptable to the Board. 

 

	7.8.	Form of Notice 

 Any
notice to be given to the Company pursuant to the provisions of this Plan shall be addressed to the Company to the attention of its Corporate Secretary at the Company’s principal executive office, and any notice to be given to an Optionee shall
be delivered personally or addressed to him at the address set out in the Option Agreement, or at such other address as such Optionee may hereafter designate in writing to the Company. Any such notice shall be deemed duly given when made in writing
and delivered to the Company or the Optionee, as the case may be, or if mailed, then on the fifth business day following the date of mailing such notice in a properly sealed envelope addressed as aforesaid, registered or certified mail, postage
prepaid, in a post office or post office branch maintained in Canada. 
  

	7.9.	No Representation or Warranty 

 The Company makes no representation or warranty as to the future market value of the Shares or with respect to any income tax matters affecting the Optionee resulting from the grant or exercise of an
Option and/or transactions in the Option Shares. Neither the Company, nor any of its directors, officers or employees are liable for anything done or omitted to be done by such person or any other person with respect to the price, time, quantity or
other conditions and circumstances of the purchase or sale of Option Shares hereunder, with respect to any fluctuations in the market price of Shares or in any other manner related to the Plan. 

 

	7.10.	Compliance with Applicable Law 

 If any provision of the Plan or any Option Agreement contravenes any law or any order, policy, by-law or regulation of the Exchange or any other regulatory body having authority over the Company, the Plan
or the shareholders of the Company, 

  
 22 

 
then such provision shall be deemed to be amended to the extent required to bring such provision into compliance therewith. 

 

	7.11.	No Assignment 

 Except for
the applicable restrictions on transferability for Incentive Stock Options granted to U.S. Participant set out in Section 6, no Option shall be assignable or transferable by the Optionee and any purported assignment or transfer of an Option
shall be void and shall render the Option void, provided that in the event of death of the Optionee, an Optionee’s legal personal representative may exercise the Option in accordance with Section 4.4. 

 

	7.12.	Conflict and Severability 

In the event of any conflict between the provisions of this Plan and an Option Agreement, the provisions of this Plan shall govern. If any
provision of the Plan is determined to be void or unenforceable in whole or in part, such determination shall not affect the validity or enforcement of any other provision or part of any provision thereof. 

 

	7.13.	Governing Law 

 The Plan
and each Option Agreement issued pursuant to the Plan shall be governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. 

 

	7.14.	Time of Essence 

 Time is
of the essence of this Plan and of each Option Agreement. No extension of time will be deemed to be, or to operate as, a waiver that time is to be of the essence. 
  

	7.15.	Entire Agreement 

 This
Plan and the Option Agreement sets out the entire agreement between the Company and the Optionees relative to the subject matter hereof and supersedes all prior agreements, undertakings and understandings, whether oral or written. 

  
 23Coal International plc Stock Option Plan

 COAL INTERNATIONAL PLC STOCK OPTION PLAN 

COAL INTERNATIONAL PLC, a company incorporated in England and Wales (“Coal International”), hereby establishes the Coal
International PLC Stock Option Plan (the “Plan”), for the participation of employees of its United States Subsidiaries, as such term is defined below, effective May 30, 2007 (the “Effective Date”). 

1. Purpose. The purpose of the Plan is to attract and retain outstanding employees of the Subsidiaries who will contribute
to the Subsidiaries’ success and to achieve long-term objectives which will inure to the benefit of all stockholders of the Subsidiaries and Coal International through the additional incentive inherent in the ownership of ordinary shares of
Coal International, which ordinary shares are admitted to trading on the AIM market of the London Stock Exchange (“Shares”). For purposes of the Plan, the term “Subsidiary” shall mean “subsidiary corporation,” as such
term is defined in Section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”) and the terms “Subsidiary” and “Majority-Owned Subsidiary shall have the meanings ascribed to them in Rule 405 (“Rule
405”) of the Securities Act Rules promulgated under the Securities Act of 1933 as Amended and includes on the date hereof, Atlantic Development and Capital, LLC (“ADC”), Atlantic Leaseco LLC, a Delaware Limited Liability Company,
Deepgreen West Virginia, Inc., a West Virginia corporation and Maple Coal Co., a Delaware corporation. For purposes of the Plan, the term “Award” shall mean a grant of an option to purchase Shares (an “Option”) pursuant to the
Plan. 
 2. Shares Subject to Awards. 
 (a) Awards may be granted in the following forms: 
 (i) incentive
stock options (“Incentive Stock Options”) as provided in Section 422 of the Code; provided, however, that no Award of Incentive Stock Options shall be made hereunder after the date that is the tenth anniversary of the Effective Date;
and 
 (ii) non-qualified stock options (“Non-qualified Options”) (the term “Options”
includes incentive stock options and non-qualified options). 
 (b) Subject to the adjustment provisions of Section 13
hereof, the aggregate number of Shares which may be issued under all Awards shall not exceed one million five hundred thousand. The total number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan shall be the
number of Shares indicated in the immediately preceding sentence. Shares delivered under the Plan may be authorized and unissued Shares, Share reacquired by Coal International or both. The Shares that are forfeited under the terms of the Plan and
Shares that are the subject of Options that expire unexercised or which are otherwise surrendered by the holder of such Option (the “Optionee”) without receiving any payment or other benefit with respect thereto may again be subject to new
Awards under the Plan. 

 3. Administration of the Plan. The Plan shall be administered by members of a
compensation committee of the Board of Directors of Coal International (the “Board”), consisting of not fewer than two directors of Coal International, as designated by the Board (the “Committee”). One of the members of the
Committee shall be a director of ADC. The Board may remove from, add members to, or fill vacancies in the Committee. 
 The
Committee is authorized, subject to the provisions of the Plan, to establish such rules and regulations as it may deem appropriate for the conduct of meetings and proper administration of the Plan. All actions of the Committee shall be taken by
majority vote of its members, except that the members thereof may authorize any one or more of their number or any officer of the Company to execute and deliver documents on behalf of the Committee. Subject to the provisions of the Plan, the
Committee shall have authority, in its sole discretion, to grant Awards under the Plan, to interpret the provisions of the Plan and, subject to the requirements of applicable law, to prescribe, amend, and rescind rules and regulations relating to
the Plan or any Award thereunder as it may deem necessary or advisable. All decisions made by the Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons. No member of the Committee shall be liable for
anything done or omitted to be done by him or by any other member of the Committee in connection with the Plan, except for his own willful misconduct or as expressly provided by statute. 

4. Eligibility. Awards shall be made to such employees of the Subsidiaries as the Committee shall select from time to time;
provided, however, that Incentive Stock Options shall not be granted to any owner of 10% or more of the total combined voting power of all classes of stock of the Coal International or any of its subsidiaries, as determined under
Section 422(b)(6) of the Code (a “10% owner”), unless the Option price per Share under (b) below is at least 110% of the Fair Market Value (as defined below) of such Share. The Committee’s designation of an Optionee in any
year shall not require the Committee to designate such person to receive Awards or grants in any other year. 
 5. Stock
Option Agreements. All Options granted pursuant to the Plan shall be evidenced in writing by stock option agreements (“Stock Option Agreements”) in such form and containing such terms and conditions as the Committee shall determine
which are not inconsistent with the provisions of the Plan, including the following: 
 (a) Type of Option; Number of
Shares. Each Option shall be designated as either an Incentive Stock Option or a Non-qualified Option; provided, however, that to the extent that the aggregate Fair Market Value (defined below, but determined on the date that such Option is
granted) of Shares with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year (under the Plan and all other plans of the Optionee’s employer corporation and its parent and subsidiary
corporations) exceeds $100,000, such Option shall be treated as a Non-qualified Option notwithstanding its designation in a Stock Option Agreement. Each Stock Option Agreement shall state the total number of Shares to which it pertains. 

  
 2 

 (b) Option Price. The Option price per each Share shall be determined by the
Committee at the time any Option is granted and stated in the Stock Option Agreement, but shall not be less than 100% of the Fair Market Value of such Share on the date of the Award. For all purposes under the Plan, “Fair Market Value”
shall mean, the per Share closing price of the Shares for the day immediately preceding the date as of which Fair Market Value is being determined (or if there was no reported closing price on such date, on the last preceding date on which the
closing price was reported) reported on AIM market of the London Stock Exchange. 
 (c) Option Period. The period for
which the Option is granted shall be determined by the Committee, and the Stock Option Agreement shall provide that the Option shall expire at the end of such period; provided, however, that no Option shall be exercisable after the expiration of ten
years from the date of its Award. Notwithstanding the preceding sentence, in the case of an Incentive Stock Option granted to an Optionee who, at the time such option is granted, is a 10% owner, the term of the Option shall be five years from the
date of the Award or such shorter term as provided in the Stock Option Agreement; and, provided further that an Option shall not be exercisable unless counsel for ADC shall be satisfied that the issuance of Shares upon exercise will be in compliance
with the Securities Act and other applicable laws. No Option may be exercised after the expiration of its term. 
 (d)
Vesting Period. Except as otherwise provided upon a Change of Control (see below), Options shall become vested and exercisable in accordance with the vesting schedules set forth in the individual Stock Option Agreements pursuant to which an
Option is granted, in the sole discretion of the Committee. 
 Each Stock Option Agreement shall provide that options shall
cease to vest in accordance with the schedules set forth therein and, except as provided in Sections 7, 8, 9 and 10 and 11, shall become null and void upon the termination of employment for any reason. 

(e) Time and Manner of Payment. Each Stock Option Agreement shall provide that Options granted under the Plan shall be exercised
by the Optionee (or by his executors, administrators, guardian or legal representative) as to all or part of the Shares covered thereby, by the giving of written notice of exercise to ADC, specifying the number of Shares to be purchased. Full
payment of such purchase price shall be made within ten business days following the receipt of such notice by ADC and shall be made in cash or by certified check, bank check, or promissory note, as permitted by the Committee in its discretion. Such
notice of exercise and full payment, shall be delivered to ADC for the account of Coal International at the principal business office or such other office of ADC as the Committee may from time to time direct, and shall be in such form, containing
such further provisions consistent with the provisions of the Plan, as the Committee may from time to time prescribe. In no event may any Option granted hereunder be exercised for a fraction of a Share. The Company shall cause Coal International to
effect the transfer of Shares purchased pursuant to an Option as soon as practicable, and, within a reasonable time thereafter, such transfer shall be evidenced on the books of Coal International. No person exercising an Option shall have any of the
rights of a holder of Shares subject to an Option until certificates for such Shares shall have been issued following the exercise of such 

  
 3 

 
Option. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date of such issuance. 

(f) Other Provisions. A Stock Option Agreement may contain any other terms and conditions that the Committee, in its sole
discretion, deems appropriate; provided, however, that no such term or condition shall be inconsistent with the terms of the Plan or, in the case of an Incentive Stock Option, Section 422 of the Code, and provided further that no Optionee shall
have any rights with respect to the exercise of the Options or sale or transfer of the Shares to the extent that such exercise, sale or transfer are in violation of the applicable Federal or state securities laws. Each Stock Option Agreement may
condition the exercise of any Option upon the attainment of specified productivity goals by a Subsidiary or division or an individual Optionee. Each Stock Option Agreement may require an Optionee to give prompt written notice to ADC concerning any
disposition of Shares received upon the Optionee’s exercise of an Incentive Stock Option within (i) two years from the date of granting such Incentive Stock Option to such Optionee or (ii) one year from the transfer of such Shares to
such Optionee. 
 (g) Admission to AIM. Coal International shall take all steps necessary to cause Shares
issued pursuant to any Award to be admitted to AIM. 
 6. Non-Transferability of Options. No Option shall be
assignable or transferable by the Optionee, other than by will or the laws of descent and distribution, and may be exercised during the lifetime of the Optionee only by the Optionee or his guardian or legal representative; provided, however, that
during the Optionee’s lifetime, the Optionee may, with the consent of the Committee, transfer without consideration all or any portion of his Options to (i) one or more members of the Optionee’s immediate family, (ii) a trust
established for the exclusive benefit of one or more members of the Optionee’s immediate family, or (iii) a limited liability company in which all members are members of the Optionee’s immediate family; provided further, however, that
any such immediate family, and any such trust and limited liability company, shall agree to be and shall be bound by the terms and provisions of the Plan and any applicable Stock Option Agreement or other agreements covering the Options of the
Shares. For purposes of this Section 6, “immediate family” means the Optionee’s spouse, children, stepchildren, grandchildren, parents, stepparents, grandparents, siblings (including half-brothers and half-sisters), in-laws, and
all such relationships arising because of legal adoption. 
 7. Termination of Employment. 

(a) In the event of the termination of employment of an Optionee with the Subsidiaries for any reason (other than termination for cause,
retirement, death, disability or Change of Control as provided below), Options granted to him that have not previously expired or been exercised shall be, to the extent exercisable on the date of such termination, exercisable by the Optionee within
30 days after the date of such termination, unless such Option is earlier terminated pursuant to its terms. All Options that are not exercisable as of the date of such termination or which are not exercised within 30 days thereafter, shall be deemed
canceled and terminated as of such date. 

  
 4 

 (b) In the event that an Optionee’s employment is terminated by any Subsidiary for
“cause,” all Options, whether or not exercisable as of the date of such termination, shall be canceled and terminated as of such date. For these purposes, termination for “cause” shall mean the following: the Optionee’s
violation of copyright/trademark or patent protection maintained by Coal International, the Subsidiaries, or their affiliates; the Optionee’s engaging or assisting in any business in competition with Coal International or the Subsidiaries as
employee, owner, partner, director, officer, stockholder, consultant or agent (ownership of minority interests in publicly-traded corporations, partnerships or companies or of 1% or less of the equity of privately-held corporations, partnerships or
companies shall not be considered competition for purposes of this Plan); the Optionee’s dishonesty, or acting in any manner inconsistent with the utmost good faith and loyalty in the performance of the employee’s duties; conviction of the
Optionee by a court of law of competent jurisdiction for fraud, misappropriation, embezzlement, or any felony; association with felons or persons of ill repute; failure of the Optionee to perform his duties to the reasonable satisfaction of the Coal
International or its Subsidiaries. 
 8. Retirement. In the event an Optionee retires from employment with the
Subsidiaries, Options granted to him that have not previously expired or been exercised shall, to the extent exercisable on the date of retirement, continue to be exercisable by the Optionee in accordance with the Stock Option Agreement under which
such Options were granted. Whether or not an Optionee has “retired” shall be determined by the Committee in its sole discretion. 
 9. Death. In the event an Optionee dies while employed by a Subsidiary, any Option granted to him that has not previously expired or been exercised shall, to the extent exercisable on the
date of death, be exercisable by the estate of such Optionee or by any person who acquired such Option by bequest or inheritance, at any time within one year after the date of death of the Optionee, unless such Option is earlier terminated pursuant
to its terms. All Options that are not exercisable as of the date of the Optionee’s death or which are not exercised within one year thereafter shall be deemed canceled and terminated as of such applicable date. 

10. Disability. In the event of the termination of employment of an Optionee due to total disability, the Optionee or his
guardian or legal representative, shall have the right to exercise any Option which has not been previously exercised or expired and which the Optionee was eligible to exercise as of the first date of total disability, at any time within one year
after such termination or separation, unless such Option is earlier terminated pursuant to its terms. All Options that are not exercisable as of the date of the Optionee’s termination or which are not exercised within two years thereafter shall
be deemed canceled and terminated as of such applicable date. The term “total disability” shall, for purposes of this Plan, be defined in the same manner as such term is defined in Section 22(e)(3) of the Code and shall be determined
by the Committee in its sole discretion. 
 11. Change of Control. Except as otherwise provided by the Committee
in a Stock Option Agreement, in the event of a Change of Control of ADC or Coal International, as determined by the Committee, Options granted to such Optionee that have not previously expired

  
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or been exercised shall be substituted for options in any successor entity. In the event that the successor entity or its affiliate refuses to assume such option or to substitute an equivalent
option, such Option may, at the discretion of the Committee become 100% vested upon the consummation of the event constituting the Change in Control. A Change of Control shall be deemed to have occurred when: 

(a) any person who is not an Affiliate of Coal International or its subsidiaries (as such term “Person” is used in
Section 13 of the Exchange Act and the rules and regulations thereunder and any person acting in concert with such person, and as such term “Affiliate” is defined in Rule 405) directly or indirectly acquires or otherwise becomes
entitled to vote more than 50% of the voting power entitled to be cast at elections for directors of Coal International; or 

(b) there occurs any merger or consolidation of Coal International or ADC, or any sale, lease or exchange of all or any substantial part
of the consolidated assets of Coal International and the Subsidiaries to any other person who is not an Affiliate of Coal International or its subsidiaries; 
 (c) there occurs any merger or consolidation of Coal International or ADC, or any sale, lease or exchange of all or any substantial part of the consolidated assets of Coal International and it
subsidiaries to any other person, and (i) in the case of a merger or consolidation, the holders of outstanding stock of the Coal International or ADC entitled to vote in elections of directors of Coal International or ADC immediately before
such merger or consolidation (excluding for this purpose any person that directly or indirectly owns or is entitled to vote 20% or more of the voting power of Coal International of ADC) hold less than 50% of the voting power of the survivor of such
merger or consolidation or its parent, or (ii) in the case of any such sale, lease or exchange, Coal International or ADC does not own at least 50% of the voting power of the other person; or 

(d) one or more new directors of Coal International or ADC are elected and at such time five or more directors (or, if less, a majority
of the directors) then holding office were not nominated as candidates by a majority of the directors in office immediately before such election. 
 12. [Intentionally deleted.] 
 13. Adjustments. In the
event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, or exchange of Shares or other securities, the issuance of warrants or other rights to purchase Shares or other securities, or other similar corporate transaction or event affects the Shares with respect
to which Options have been or may be issued under the Plan, such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan, then the Committee shall, in such manner as the Committee may deem 

  
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equitable, adjust any or all of (i) the number and type of Shares that thereafter may be made the subject of Options, (ii) the number and type of Shares subject to outstanding Options,
and (iii) the grant or exercise price with respect to any Option, or, if deemed appropriate, make provision for a cash payment to the holder of any outstanding Option; provided, however, that the number of Shares subject to any Option
denominated in Shares shall always be a whole number. 
 14. Tax Withholding. ADC shall notify an Optionee of any
income tax withholding requirements arising as a result of the grant of any Award or exercise of an Option. ADC shall have the right to withhold from any payment to such Optionee such withholding taxes as may be required by law, or to otherwise
require the Optionee to pay such withholding taxes. If the Optionee shall fail to make such tax payments as are required, the Subsidiary that employs the Optionee shall, to the extent permitted by law, have the right to deduct any such taxes from
any payment of any kind, including a payment of Shares, otherwise due to such Optionee or to take such other action as may be necessary to satisfy such withholding obligations. 

15. Right of Discharge Reserved. Nothing in the Plan nor the grant of an Award hereunder shall confer upon any employee,
director or other individual the right to continue in the employment of or service with any of the Subsidiaries or affect any right that any Subsidiary may have to terminate the employment or service of (or to demote or to exclude from future
Options under the Plan) any such employee, director or other individual at any time for any reason. Except as specifically provided by the Committee, neither Coal International nor any Subsidiary shall be liable for the loss of existing or potential
profit from an Award granted in the event of termination of an employment even if the termination is in violation of an obligation of the any Subsidiary to the employee. 
 16. Severability. If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in whole or in part, such unlawfulness, invalidity or unenforceability shall not
affect any other provision of the Plan or part thereof, each of which remain in full force and effect. If the making of any payment or the provision of any other benefit required under the Plan shall be held unlawful or otherwise invalid or
unenforceable, such unlawfulness, invalidity or unenforceability shall not prevent any other payment or benefit from being made or provided under the Plan, to the extent that it would not be unlawful, invalid or unenforceable, and the maximum
payment or benefit that would not be unlawful, invalid or unenforceable shall be made or provided under the Plan. 
 17.
Amendment and Termination of the Plan. The Board may, from time to time, alter, amend, suspend or terminate the Plan with respect to Options that have not been granted, subject to any requirement for stockholder approval imposed by
applicable law or any rule of any stock exchange or quotation system on which Shares are listed or quoted; provided, however, that the Board may not amend the Plan in any manner that would result in noncompliance with any applicable law. Neither the
Board nor the Committee may, without the consent of the Optionee, alter or in any way impair the rights of such Optionee under any Award previously granted. Neither the termination of the Plan nor the Change of Control of the

  
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Company shall affect any Option previously granted, except as provided in the Plan or a Stock Option Agreement. 
 18. Gender and Number. Any masculine terminology used in this Plan document shall also include the feminine, and the definition of any term herein in the singular shall also include the
plural except when otherwise indicated by the context. 
 19. Governing Law. The Plan and all determinations made
and actions taken thereunder, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of West Virginia and construed accordingly. 

  
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