Document:

exhibit10-18.htm

    EXHIBIT
10.18

     

     

     

     

     

     

     

     

     

     

    ALPHA
NATURAL RESOURCES, INC. and Subsidiaries

     

     

    DEFERRED
COMPENSATION PLAN

     

    

    Amended
and Restated on

    November
20, 2007

    

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ALPHA
NATURAL RESOURCES, INC and Subsidiaries

    

    DEFERRED
COMPENSATION PLAN

    

    

    ARTICLE
I - PURPOSE; EFFECTIVE
DATE

    

    
      	
              1.1.  

            	
              Purpose.
      The purpose of this Deferred Compensation Plan (hereinafter, the "Plan”)
      is to permit a select group of management and highly compensated employees
      of ALPHA
      NATURAL RESOURCES, INC and its subsidiaries that have adopted the
      Plan to defer the receipt of income which would otherwise become payable
      to them.  It is intended that this plan, by providing this
      deferral opportunity, will assist the Company in retaining and attracting
      individuals of exceptional ability by providing them with these
      benefits.

            

    

    

    
      	
              1.2.  

            	
              Effective
      Date.  The Plan, originally effective as of December 31,
      2004, has been amended and restated as of January 1,
  2008.

            

    

    

     

    ARTICLE
II - DEFINITIONS

    

    For the purpose of this Plan, the
following terms shall have the meanings indicated, unless the context clearly
indicates otherwise:

    

    
      	
              2.1.  

            	
              Account(s).  "Account(s)"
      means the account or accounts maintained on the books of the Company used
      solely to calculate the amount payable to each Participant under this Plan
      and shall not constitute a separate fund of assets.  The
      Accounts available for each Participant shall be identified
      as:

            

    

    
      	
              a)  

            	
              Retirement
      Account;

            

    

    
      	
              b)  

            	
              In-Service
      Account (each Participant may maintain up to two (2) In-Service Accounts
      with different payment dates as provided herein);
  and

            

    

    
      	
              c)  

            	
              Supplemental
      Retirement Plan Account ("SRP
Account").

            

    

    

    
      	
              2.2.  

            	
              Beneficiary.  "Beneficiary"
      means one or more persons or entities designated by the Participant to
      receive any Plan benefits payable after the Participant's
      death.

            

    

    

    
      	
              2.3.  

            	
              Board.  "Board"
      means the Board of Directors of the
Company.

            

    

    

    
      	
              2.4.  

            	
              Committee.  "Committee"
      means the Committee appointed by the Board to administer the
      Plan.  The initial Committee so designated by the Board shall
      consist of the
      Vice President of Human Resources, Executive Vice President/Chief
      Administrative Officer and the
President/CEO.

            

    

    

    
      	
              2.5.  

            	
              Company.  "Company"
      means ALPHA
      NATURAL RESOURCES, INC, a Delaware company, and any directly or
      indirectly affiliated subsidiary that has adopted this Plan or any
      successor to the business thereof.  Any reference herein
      to the "Company" should, except as
      the context otherwise requires, be interpreted as a reference to the
      Participant's particular employer.  A list of
      subsidiaries that have adopted this Plan are attached to this document as
      Annex A.

            

    

    

    
      	
              2.6.  

            	
              Compensation.  "Compensation"
      means bonus compensation under the Alpha Natural Resources, Inc. Annual
      Incentive Bonus Plan earned for services rendered by a Participant during
      a Deferral Period; provided, however, with respect to a Participant's
      first-year of eligible participation, any such election shall only apply
      to applicable bonus compensation paid for services performed after the
      election.  Accordingly, if a Deferral Commitment is made in the
      first-year of eligibility but after the beginning of the specified
      performance period, the Deferral Commitment shall only apply to the total
      amount of  such bonus compensation multiplied by the ratio of
      (i) the number of days remaining in the Deferral Period after the election
      to (ii) the total number of days in the Deferral Period.  For
      purposes of this Plan, Compensation shall be calculated before reduction
      for any amounts deferred by the Participant pursuant to the Company's tax
      qualified plans which may be maintained under § 401(k) or § 125 of the
      Internal Revenue Code of 1986, as amended, (the "Code"), or pursuant to
      this Plan or any other non-qualified plan which permits the voluntary
      deferral of compensation.

            

    

    

    
      	
              2.7.  

            	
              Compensation
      Limit. "Compensation Limit" means annual compensation limit
      specified under § 401(a)(17) of the
Code.

            

    

    

    
      	
              2.8.  

            	
              Deferral
      Commitment.  "Deferral Commitment" means an election made
      by a Participant to defer a portion of Compensation.  The
      Deferral Commitment shall specify the Account or Accounts to which the
      Compensation deferred shall be credited as well as the time and form of
      payment from such Account.  Such designation shall be made in
      whole percentages, or as otherwise permitted by the Committee and shall be
      made in a form and at a time established by the Committee.  A
      Deferral Commitment shall remain in effect until amended or revoked as
      provided under the terms of the
Plan.

            

    

    

    
      	
              2.9.  

            	
              Deferral
      Period.  "Deferral Period" means each calendar
      year.

            

    

    

    
      	
              2.10.  

            	
              Determination
      Date.  "Determination Date" means the last day of each
      calendar month.

            

    

    

    
      	
              2.11.  

            	
              Interest.  "Interest"
      means the amount credited to a Participant’s Account(s) on each
      Determination Date, which shall be based on the Valuation Funds chosen by
      the Participant. Such credits to a Participant’s Account may be either
      positive or negative to reflect the increase or decrease in value of the
      Account as determined in accordance with the provisions of this
      Plan.

            

    

    

    
      	
              2.12.  

            	
              Financial
      Hardship.  "Financial Hardship" means a severe financial
      hardship to the Participant resulting from an illness or accident of the
      Participant, the Participant’s spouse, a beneficiary, or a dependent (as
      defined in § 152(a) of the Code, without regard to Section 152(b)(1),
      (b)(2) and (d)(1)(B)) of the Participant; the need to pay for the funeral
      expenses of a spouse, beneficiary or dependent (as defined above); loss of
      the Participant’s property due to casualty; or other similar extraordinary
      and unforeseeable circumstances arising as a result of events beyond the
      control of the Participant.

            

    

    

    
      	
              2.13.  

            	
              Participant.  "Participant"
      means any eligible employee who has elected to defer Compensation under
      this Plan, or who has received a SRP Contribution.  Such
      employee shall remain a Participant in this Plan for the period of
      deferral and until such time as all benefits payable under this Plan have
      been paid in accordance with the provisions hereof; provided, however, the
      foregoing provisions shall not limit the Committee's discretion to
      determine whether an employee remains eligible to continue to actively
      participate in the Plan.

            

    

    

    
      	
              2.14.  

            	
              Plan.  "Plan"
      means this Deferred Compensation Plan, as amended from time to
      time.

            

    

    

    
      	
              2.15.  

            	
              Retirement.  "Retirement"
      means the Participant’s Separation from Service (other than on account of
      death) after the Participant has attained age
  55.

            

    

    

    
      	
              2.16.  

            	
              Separation
      from Service.   "Separation from
      Service" shall mean a Participant's death, retirement or other termination
      of employment with the Company and all of its controlled group members
      within the meaning of Section 409A of the Code.  For purposes
      hereof, the determination of controlled group members shall be made
      pursuant to the provisions of Section 414(b) and 414(c) of the Code;
      provided that the language "at least 50 percent" shall be used instead of
      "at least 80 percent" in each place it appears in Section 1563(a)(1),(2)
      and (3) of the Code and Treas. Reg. § 1.414(c)-2; provided, further, where
      legitimate business reasons exist (within the meaning of Treas. Reg. §
      1.409A-1(h)(3)), the language "at least 20 percent" shall be used instead
      of "at least 80 percent" in each place it appears.  Whether a
      Participant has a Separation from Service will be determined based on all
      of the facts and circumstances and in accordance with the guidance issued
      under Section 409A.

            

    

    

    
      	
              2.17.  

            	
              SRP
      Contribution.  "SRP
      Contribution"
      means the contribution made by the Company credited to the Participant's
      SRP Account.

            

    

    

    
      	
              2.18.  

            	
              Specified
      Employees.  "Specified
      Employees"
      means key employees of the Company, as defined in Section 416(i) of the
      Code without regard to paragraph (5) thereof, as determined in accordance
      with the procedures established by the
  Committee.

            

    

    

    

    
      	
              2.19.  

            	
              Valuation
      Funds.   "Valuation
      Funds"
      means one or more of the independently established  funds or
      indices, as authorized by the Committee, used to calculate the Interest
      that is credited to each Participant’s Account(s) in accordance with the
      terms of the Plan. Any such funds or indices represent hypothetical
      investments and do not represent actual investments, and shall not convey
      any beneficial interest on the part of the Participant in any asset or
      other property of the Company.  The determination of the
      increase or decrease in the performance of each Valuation Fund shall be
      determined in accordance with the procedures established by the
      Committee.  The Committee shall select one or more Valuation
      Funds available to the Participants with respect to this Plan and shall
      set forth a list of these Valuation Funds attached hereto as Exhibit A,
      which may be amended from time to time in the discretion of the
      Committee.

            

    

    

    

    ARTICLE
III - ELIGIBILITY AND
PARTICIPATION

    

    
      	
              3.1.  

            	
              Eligibility
      and Participation.

            

    

    

    
      	
              a)  

            	
              Eligibility. 
      Eligibility to participate in the Plan shall be limited to key employees
      of the Company who are designated by management, from time to time, and
      approved by the Committee.

            

    

    
      	
              b)  

            	
              Participation.  An
      employee's participation in the Plan shall be effective upon notification
      to the employee by the Committee of eligibility to participate in the
      Plan; provided, however, the Committee reserves the discretion to limit an
      employee's ability to continue to participate in the Plan in the
      future.

            

    

    

    
      	
              3.2.  

            	
              Form
      of Deferral Commitment.  A Participant may elect to make
      a Deferral Commitment  subject to the following
      provisions:

            

    

    

    
      	
              a)  

            	
              Deferral
      Amounts; Accounts.   A Deferral Commitment shall be
      made no later than December 31st of the calendar year preceding the
      beginning of the Deferral Period (or such other date specified by the
      Committee to the extent consistent with Section 409A); provided, however,
      that a Deferral Commitment with respect to Compensation payable for/during
      2005 must have been submitted no later than the earlier of: (i) March 15,
      2005; or (ii) the date on which the Compensation was paid or became
      payable to the Participant. When an individual first becomes eligible to
      participate in this Plan during a Deferral Period, a Deferral Commitment
      may be submitted to the Committee within thirty (30) days after the date
      the individual becomes eligible to participate.  A Deferral
      Commitment shall designate the portion of Compensation that shall be
      allocated among the Participant's Retirement and In-Service Accounts (no
      amount of Compensation may be deferred by the Participant into the
      Participant's SRP Account).  No deferral may be made to an
      In-Service Account with a payment date that falls within the calendar year
      in which the deferred Compensation would be credited to the In-Service
      Account.

            

    

    
      	
              b)  

            	
              Allocation
      to Valuation Funds.  The Participant shall specify in a
      separate form (known as the “Allocation Form”) filed with the Committee,
      the Participant’s initial allocation of the amounts deferred into each
      Account among the various available Valuation
  Funds.

            

    

    
      	
              c)  

            	
               Maximum
      Deferral.  The maximum amount of Compensation that may be
      deferred shall be one hundred percent
(100%).

            

    

    

    

    
      	
              3.3.  

            	
              Period
      of Commitment.  Once a Participant has made a Deferral
      Commitment, that Commitment shall remain in effect for the next succeeding
      Deferral Period and shall remain in effect for all future Deferral Periods
      unless revoked or amended in writing by the Participant and delivered to
      the Committee no later than fifteen (15) days prior to the beginning of a
      subsequent Deferral Period (or such other date as permitted by the
      Committee to the extent consistent with Section
  409A).

            

    

    

    
      	
              3.4.  

            	
              Deferral
      Commitment.  A
      Deferral Commitment shall be irrevocable by the Participant during a
      Deferral Period; provided, however, if a Participant suffers a disability,
      receives a distribution on account of Financial hardship or dies, the
      Participants Deferral Commitment shall be cancelled.  For
      purposes of this Section, a disability refers to any medically
      determinable physical or mental impairment resulting in the Participant’s
      inability to perform the duties of his or her position or any
      substantially similar position, where such impairment can be expected to
      result in death or can be expected to last for a continuous period of not
      less than six months.

            

    

    

    
      	
              3.5.  

            	
              Change
      in Status.  If the Committee determines that a
      Participant's employment performance is no longer at a level that warrants
      participation in this Plan, no new Deferral Commitment may be made by such
      Participant after notice of such determination is given by the Committee,
      unless the Participant later satisfies the eligibility requirements to
      participate in the Plan.  If the Committee, in its sole
      discretion, determines that the Participant no longer qualifies as a
      member of a select group of management or highly compensated employees, as
      determined in accordance with the Employee Retirement Income Security Act
      of 1974, as amended, the Committee may, in its sole discretion, prohibit
      the Participant from making any future Deferral Commitments and/or, to the
      extent permitted under Section 409A, take such other action it deems
      necessary or appropriate, including, but not limited to, terminating the
      Participant’s participation in the
Plan.

            

    

    

    
      	
              3.6.  

            	
              Incomplete
      or Inaccurate Deferral Commitments.  In the event that a
      Participant submits a Deferral Commitment to the Committee that is
      incomplete or lacks information necessary to the efficient operation of
      this Plan, the Committee, in its sole discretion, shall return the
      election to the Participant for further
  completion.

            

    

    

    

    ARTICLE
IV - DEFERRED
COMPENSATION ACCOUNT

    

    
      	
              4.1.  

            	
              Accounts.  The
      Compensation deferred by a Participant under the Plan, SRP Contributions
      and Interest shall be credited to the Participant's
      Account(s).  Separate accounts shall be maintained on the books
      of the Company to reflect each Participant's SRP Account, Retirement
      Account and In-Service Accounts.  These Accounts shall be used
      solely to calculate the amount payable to each Participant under this Plan
      and shall not constitute a separate fund of
  assets.

            

    

    

    
      	
              4.2.  

            	
              Timing
      of Deferral Credits.  A Participant's Compensation which
      has been elected to be deferred shall be credited to the Participant's
      Retirement and In-Service Accounts on the last day of the month during
      which the Compensation deferred would have otherwise been payable to the
      Participant.  

            

    

    
      	
              4.3.  

            	
              Contributions
      To SRP Account.  The Company shall credit SRP
      Contributions, if any, to each Participant’s SRP Account as soon as is
      practical after the close of each calendar year.  The amount of
      the credited contribution under this Section shall be equal to the sum of
      (a) and (b):

            

    

    

    
      	
              a)  

            	
              three
      percent (3%) of the Participant’s total annual compensation for the preceding
      calendar year in excess of the Compensation Limit for that prior calendar
      year; and

            

    

    
      	
              b)  

            	
              fifty
      percent (50%) of the amount of Compensation deferred by the Participant in
      the prior calendar year under this Plan, but in no event will the amount
      determined under this sub-Section (b) exceed two percent (2%) of the
      Participant’s total annual compensation for the preceding calendar year in
      excess of the Compensation Limit for that prior calendar
    year.

            

    

    

    
      	
              4.4.  

            	
              Valuation
      Funds.  A Participant may designate, at a time and in a
      manner authorized by the Committee, one or more Valuation Funds for each
      Account.  Such election shall designate the portion of each
      Account that shall be allocated among the available Valuation Fund(s), and
      such election shall apply to each succeeding deferral of Compensation
      until such time as the Participant shall file a new election with the
      Committee. Upon notice to the Committee, the Participant may also
      reallocate the balance in each Valuation Fund among the other available
      Valuation Funds as of the next succeeding Determination
    Date.

            

    

    

    
      	
              4.5.  

            	
              Determination
      of Accounts.  Each Participant's Account as of each
      Determination Date shall consist of the balance of the Account as of the
      immediately preceding Determination Date, adjusted as
    follows:

            

    

    

    
      	
              a)  

            	
              New
      Deferrals; SRP Contributions.  The Participant's Accounts
      shall be increased, as appropriate, by any Compensation deferred by the
      Participant and any SRP Contributions credited since such prior
      Determination Date.

            

    

    
      	
              b)  

            	
              Distributions.  Each
      Account shall be reduced by the amount of each benefit payment made from
      that Account since the prior Determination Date.  Distributions
      shall be deemed to have been made proportionally from each of the
      Valuation Funds maintained within such Account based on the proportion
      that such Valuation Fund bears to the sum of all Valuation Funds
      maintained within such Account for that Participant as of the
      Determination Date immediately preceding the date of
    payment.

            

    

    
      	
              c)  

            	
              Interest.  Each
      Account shall be increased or decreased by the Interest for such Account
      since such Determination Date.

            

    

    

    
      	
              4.6.  

            	
              Vesting
      of Accounts.  Each Participant shall be vested in the
      amounts credited to such Participant's Account and Interest thereon as
      follows:

            

    

    
      	
              a)  

            	
              Amounts
      Deferred.  A Participant shall be one hundred percent
      (100%) vested at all times in the amount of Compensation elected to be
      deferred under this Plan and Interest
thereon.

            

    

    
      	
              b)  

            	
              SRP
      Account Contributions.  SRP Contributions credited to a
      Participant’s SRP Account and Interest thereon shall become one hundred
      percent (100%) vested upon the Participant’s completion of five (5) years
      of complete service with the
Company.

            

    

    

    
      	
              4.7.  

            	
              Statement
      of Accounts.  The Committee shall provide to each Participant
      a statement showing the balances in the Participant's Account on a
      quarterly basis.

            

    

    

    

    ARTICLE
V - PLAN
BENEFITS

    

    
      	
              5.1.  

            	
              Retirement
      Account.  The vested portion of a Participant's
      Retirement Account shall be distributed to the Participant as
      follows.

            

    

    
      	
              a)  

            	
              Timing
      of Payment.  The Participant's Retirement Account shall
      be paid beginning on the six month anniversary of your Separation from
      Service, and subsequent payments, if the form of payment selected provides
      for installment payments, shall be made on the anniversary of the initial
      payment.

            

    

    
      	
              b)  

            	
              Form
      of Payment.  The form of benefit payment shall be that
      form selected by the Participant in the first Deferral Commitment which
      designated a portion of the Compensation deferred be allocated to the
      Retirement Account; provided, however, if the Participant Separates from
      Service prior to Retirement, the Retirement Account shall be paid in the
      form of a lump sum payment.

            

    

    

    
      	
              5.2.  

            	
              SRP
      Account.  The vested portion of a Participant's SRP
      Account shall be distributed to the Participant as
  follows.

            

    

    
      	
              a)  

            	
              Timing
      of Payment.  The Participant's SRP Account shall be paid
      beginning on the six month anniversary of your Separation from Service,
      and subsequent payments, if the form of payment selected provides for
      installment payments, shall be made on the anniversary of the initial
      payment.

            

    

    
      	
              b)  

            	
              Form
      of Payment.  The form of benefit payment shall be that
      form selected by the Participant at the time a SRP contribution is first
      allocated to the Participant’s SRP Account, and as permitted pursuant to
      Section 5.7, below, except that if the Participant Separates from Service
      prior to Retirement, the SRP Account shall be paid in the form of a lump
      sum payment.

            

    

    

    
      	
              5.3.  

            	
              In-Service
      Account. The vested portion of a Participant's In-Service Account
      shall be distributed to the Participant upon the date chosen by the
      Participant.

            

    

    
      	
              a)  

            	
              Timing
      of Payment.  Benefits under this section shall be payable
      on the date specified in the first Deferral Commitment which designated a
      portion of the Compensation deferred be allocated to the In-Service
      Account, and subsequent payments, if the form of payment selected provides
      for subsequent payments, shall be made on the anniversary of the initial
      payment.  In no event shall the date selected be earlier than
      the first day of the sixth (6th) calendar year following the initial
      filing of the Deferral Commitment with respect to that In-Service
      Account.  In the event that the Participant Separates from
      Service with the Company prior to the payment date specified, the benefits
      under the Participant's In-Service Account shall be paid on the six month
      anniversary of  the Participant's Separation from
      Service.

            

    

    
      	
              b)  

            	
              Form
      of Payment. The form of benefit
      payment shall be that form selected by the Participant in the first
      Deferral Commitment which designated a portion of the Compensation
      deferred be allocated to the In-Service Account, and as permitted pursuant
      to the terms of the Plan, except that if the Participant terminates
      employment with the Company prior to the specified payment date, then the
      In-Service Account shall be paid in the form of a lump sum
      payment.

            

    

    
      	
              c)  

            	
              Change
      of Time of Payment.  The Participant may request to
      postpone (but not accelerate) the specified payment date initially chosen
      for an In-Service Account by filing a written election on a form approved
      by the Committee.  Any such election: (i) shall not take effect
      until 12 months after the date the election is made; (ii) must provide for
      a new payment date that is no earlier than five (5) years after the
      payment date previously specified and in force immediately prior to the
      filing of such request; and (iii) must be made not less than 12 months
      before the date the payment (or initial payment in the case of installment
      payments) is scheduled to be made.

            

    

    

    
      	
              5.4.  

            	
              Death
      Benefit.  Upon the death of a Participant prior to the
      commencement of benefits under this Plan from any particular Account, the
      Company shall pay to the Participant's Beneficiary within 60 days
      following the Participant's date of death an amount equal to the vested
      Account balance in that Account in the form of a lump sum payment. In the
      event of the death of the Participant after the commencement of benefits
      under this Plan from any Account, the benefits from that Account(s) shall
      be paid to the Participant’s designated Beneficiary from that Account at
      the same time and in the same manner as if the Participant had
      survived.

            

    

    

    
      	
              5.5.  

            	
              Hardship
      Distributions.  Upon request of a Participant and a
      finding by the Committee that a Participant has suffered a Financial
      Hardship, the Committee may, in its discretion, make a distribution from
      the Participant's vested Account balances.  The amount of such
      distribution shall be limited to the amount reasonably necessary to meet
      the Participant's needs resulting from the Financial Hardship, plus
      amounts necessary to pay taxes and penalties reasonably anticipated as a
      result of such distribution.  In determining the amount of such
      distribution, the Committee shall take into account the extent to which
      such hardship is or may be relieved through reimbursement or compensation
      by insurance or otherwise, or by liquidation of the Participant's assets
      (to the extent that the liquidation of such assets would not itself cause
      severe financial hardship).

            

    

    

    
      	
              5.6.  

            	
              Form
      of Payment.  Except as otherwise provided under the terms
      of the Plan, the benefits payable from any Account under this Plan shall
      be paid in the form of benefit, as provided below and as specified by the
      Participant in the Deferral
Commitment:

            

    

    
      	
              a)  

            	
              A
      lump sum amount equal to the vested Account balance;
  or

            

    

    
      	
              b)  

            	
              Equal
      annual installments for a period of up to a maximum of ten (10) years in
      the event of payment of a Retirement Account, fifteen (15) years in the
      event of a SRP Account, or five (5) years in the event of an In-Service
      Account, where the annual payment shall be equal to the balance of the
      Account immediately prior to the payment, multiplied by a fraction, the
      numerator of which is one (1) and a denominator equal to the number of
      annual installment payments initially chosen (reduced by one (1) for each
      prior distribution).

            

    

    

    
      	
              5.7.  

            	
              Small
      Account.  The Committee, in its discretion, may
      distribute the Participant's Accounts in a lump sum if the present value
      of the Participant's remaining unpaid Account balance (and all other
      amounts required to be aggregated with such accounts under Section 409A)
      falls below the applicable dollar amount under Section 402(g)(1)(B) of the
      Code.  Any such exercise of discretion shall be evidenced in
      writing not later than the date of
payment.

            

    

    

    
      	
              5.8.  

            	
              Withholding;
      Payroll Taxes.  All
      benefits under the Plan shall be subject to income, employment and other
      tax withholding as required by applicable law.  At the time that
      tax withholding is required, if an amount is payable under the Plan to the
      Participant, the amount of the required tax withholding shall be withheld
      from such payment.  If, however, an amount is not then payable
      or the amount payable under the Plan to the Participant is less than the
      required withholding, the Participant shall pay to the Company, not later
      than the date such withholding is required, the amount of the required tax
      withholding or, at the sole election of the Company, the amount of
      required tax withholding shall be withheld from other compensation or
      amounts payable to the Participant.  The Participant shall hold
      the Company harmless from any liability for acting to satisfy the
      withholding obligation in this
manner.

            

    

    

    
      	
              5.9.  

            	
              Payment
      to Guardian.  If a Plan benefit is payable to a minor or
      a person declared incompetent or to a person incapable of handling the
      disposition of the property, the Committee may direct payment to the
      guardian, legal representative or person having the care and custody of
      such minor, or incompetent person.  The Committee may require
      proof of incompetency, minority, incapacity or guardianship as it may deem
      appropriate prior to distribution.  Such distribution shall
      completely discharge the Committee and Company from all liability with
      respect to such benefit.

            

    

    

    
      	
              5.10.  

            	
              Effect
      of Payment.  The full payment of the applicable benefit
      under this Plan shall completely discharge all obligations on the part of
      the Company to the Participant (and the Participant's Beneficiary) with
      respect to the operation of this Plan, and the Participant's (and
      Participant's Beneficiary's) rights under this Plan shall
      terminate.

            

    

    

    

    ARTICLE
VI - BENEFICIARY
DESIGNATION

    

    
      	
              6.1.  

            	
              Beneficiary
      Designation.  Each Participant shall have the right, at
      any time, to designate one (1) or more persons as Beneficiary (both
      primary as well as secondary) to whom benefits under this Plan shall be
      paid in the event of Participant's death prior to complete distribution of
      the Participant's vested Account balance.  Each Beneficiary
      designation shall be in a written form acceptable to the Committee and
      shall be effective only if filed with the Committee during the
      Participant's lifetime.  Designation by a married Participant to
      the Participant's spouse of less than a fifty percent (50%) interest in
      the benefit due shall not be effective unless the spouse consents in
      writing to the designation, or it is established that the consent cannot
      be obtained because the spouse cannot be
  located.

            

    

    

    
      	
              6.2.  

            	
              Changing
      Beneficiary.   Any Beneficiary designation may be
      changed by filing of a new Beneficiary designation with the Committee. A
      married Participant's Beneficiary designation may be changed by a
      Participant, with the consent of the Participant's spouse as provided for
      in Section 6.1 above, by the filing of a new designation.  Any
      such new Beneficiary designation shall cancel all prior designations
      previously filed by the
Participant.

            

    

    

    
      	
              6.3.  

            	
              Change
      in Marital Status.   If the Participant's marital
      status changes after the Participant has designated a Beneficiary, the
      following shall apply:

            

    

    

    
      	
              a)  

            	
              If
      the Participant is married at death but was unmarried when the designation
      was made, the designation shall be void unless the spouse has consented to
      it in the manner prescribed herein.

            

    

    
      	
              b)  

            	
              If
      the Participant is unmarried at death but was married when the designation
      was made:

            

    

    
      	
              i)  

            	
              The
      designation shall be void if the spouse was named as
      Beneficiary.

            

    

    
      	
              ii)  

            	
              The
      designation shall remain valid if a non-spouse Beneficiary was
      named.

            

    

    
      	
              c)  

            	
              If
      the Participant was married when the designation was made and is married
      to a different spouse at death, the designation shall be void unless the
      new spouse has consented to it in the manner prescribed
      herein.

            

    

    

    
      	
              6.4.  

            	
              No
      Beneficiary Designation.   If any Participant fails
      to designate a Beneficiary in the manner provided above, if the
      designation is void, or if the Beneficiary designated by a deceased
      Participant dies before the Participant or before complete distribution of
      the Participant's benefits, the Participant's Beneficiary shall be the
      person in the first of the following classes in which there is a
      survivor:

            

    

    
      	
              a)  

            	
              The
      Participant's surviving spouse;

            

    

    
      	
              b)  

            	
              The
      Participant's children in equal shares, except that if any of the children
      predeceases the Participant but leaves surviving issue, then such issue
      shall take by right of representation the share the deceased child would
      have taken if living; or

            

    

    
      	
              c)  

            	
              The
      Participant's estate.

            

    

    

    
      	
              6.5.  

            	
              Effect
      of Payment.   Payment to the Beneficiary shall
      completely discharge the Company's obligations under this
      Plan.

            

    

    

    

    ARTICLE
VII - ADMINISTRATION

    

    
      	
              7.1.  

            	
              Committee;
      Duties.   This
      Plan shall be administered by the Committee, which shall consist of not
      less than three (3) persons appointed by the Board, except in the event of
      a Change in Control as provided in Section 7.5 below.  The
      Committee shall have the exclusive authority and discretion to
      interpret, construe, and administer the provisions of the Plan and to
      decide all questions concerning the Plan and its
      administration.  Without limiting the foregoing, the
      Administrator shall have the authority, from time to time,
      to:  determine eligibility for and the amount of benefits, if
      any, due under the Plan; determine amounts payable under the Plan;
      interpret the Plan, to make factual determinations, to correct
      deficiencies, and to supply omissions, including resolving any ambiguity
      or uncertainty arising under or existing in the terms and provisions of
      the Plan; make all other determinations and to take all other actions
      necessary or advisable for the implementation and administration of the
      Plan; and establish rules and
      regulations for the administration of the Plan.  A majority vote
      of the Committee members shall control any decision.  Members of
      the Committee may be Participants under this
  Plan.

            

    

    

    
      	
              7.2.  

            	
              Agents.   The
      Committee may, from time to time, employ agents and delegate to them such
      administrative duties as it sees fit, and may from time to time consult
      with counsel who may be counsel to the
Company.

            

    

    

    
      	
              7.3.  

            	
              Binding
      Effect of Decisions.   The decision or action of the
      Committee with respect to any question arising out of or in connection
      with the administration, interpretation and application of the Plan and
      the rules and regulations promulgated hereunder shall be final, conclusive
      and binding upon all persons having any interest in the
    Plan.

            

    

    

    
      	
              7.4.  

            	
              Indemnity
      of Committee.   The Company shall indemnify and hold
      harmless the members of the Committee against any and all claims, loss,
      damage, expense or liability arising from any action or failure to act
      with respect to this Plan on account of such member's service on the
      Committee, except in the case of gross negligence or willful
      misconduct.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
VIII - CLAIMS
PROCEDURE

    

    
      	
              8.1.  

            	
              Claim.   Any
      person or entity claiming a benefit, requesting an interpretation or
      ruling under the Plan (hereinafter referred to as "Claimant"), or
      requesting information under the Plan shall present the request in writing
      to the Committee, which shall respond in writing as soon as
      practical.

            

    

    

    
      	
              8.2.  

            	
              Denial
      of Claim.  If the claim or request is denied, the written
      notice of denial shall state:

            

    

    

    
      	
              a)  

            	
              The
      reasons for denial, with specific reference to the Plan provisions on
      which the denial is based;

            

    

    
      	
              b)  

            	
              A
      description of any additional material or information required and an
      explanation of why it is necessary;
and

            

    

    
      	
              c)  

            	
              An
      explanation of the Plan's claim review
  procedure.

            

    

    

    
      	
              8.3.  

            	
              Review
      of Claim.  Any Claimant whose claim or request is denied
      or who has not received a response within sixty (60) days may request a
      review by notice given in writing to the Committee.  Such
      request must be made within sixty (60) days after receipt by the Claimant
      of the written notice of denial, or in the event Claimant has not received
      a response sixty (60) days after receipt by the Committee of Claimant's
      claim or request.  The claim or request shall be reviewed by the
      Committee which may, but shall not be required to, grant the Claimant a
      hearing.  On review, the claimant may have representation,
      examine pertinent documents, and submit issues and comments in
      writing.

            

    

    
      	
              8.4.  

            	
              Final
      Decision.  The decision on review shall normally be made
      within sixty (60) days after the Committee's receipt of claimant's claim
      or request.  If an extension of time is required for a hearing
      or other special circumstances, the Claimant shall be notified and the
      time limit shall be one hundred twenty (120) days.  The decision
      shall be in writing and shall state the reasons and the relevant Plan
      provisions.  All decisions on review shall be final and bind all
      parties concerned.

            

    

    

    

    ARTICLE
IX - AMENDMENT AND
TERMINATION OF PLAN

    

    
      	
              9.1.  

            	
              Amendment.   The
      Company reserves the right to amend, modify or suspend the Plan, in whole
      or in part, at any time; provided however, that any such amendment,
      modification or suspension shall not reduce the accrued benefit of any
      Participant.  Notwithstanding, the Company may, in its sole
      discretion and without the Participant’s consent, modify or amend the
      terms of the Plan, or take any other action it deems necessary or
      advisable, to cause the Plan to comply with Section 409A (or an exception
      thereto).

            

    

    

    
      	
              9.2.  

            	
              Company's
      Right to Terminate.   The Company reserves the right
      to terminate the Plan, in whole or in part, at any time; provided however,
      that any such termination shall not reduce the accrued benefit
      of  any Participant.  Termination of the Plan shall
      not be a distribution event under the Plan unless otherwise permitted
      under Section 409A of the Code or other applicable
  law.

            

    

    

    

    ARTICLE
X - MISCELLANEOUS

    

    
      	
              10.1.  

            	
              Unfunded
      Plan.   This plan is an unfunded plan maintained
      primarily to provide deferred compensation benefits for a select group of
      "management or highly-compensated employees" within the meaning of
      Sections 201, 301, and 401 of the Employee Retirement Income Security Act
      of 1974, as amended ("ERISA"), and therefore is exempt from the provisions
      of Parts 2, 3 and 4 of Title I of
ERISA.

            

    

    

    
      	
              10.2.  

            	
              Company
      Obligation.   The obligation to make benefit
      payments to any Participant under the Plan shall be an obligation solely
      of the Company with respect to the deferred Compensation receivable from,
      and contributions by, that Company and shall not be an obligation of
      another company.

            

    

    

    
      	
              10.3.  

            	
              Section
      409A.  Notwithstanding any provision of the Plan to the
      contrary, the provisions of
      the Plan shall be administered, interpreted and construed in accordance
      with Section 409A, the regulations and other binding guidance promulgated
      thereunder (or disregarded to the extent such provision cannot be
      so administered, interpreted or construed).   It is intended
      that distribution events authorized under the Plan qualify as permissible
      distribution events for purposes of Section 409A of the Code, and the Plan
      shall be interpreted and construed accordingly in order to comply with
      Section 409A of the Code, the regulations and other binding guidance
      promulgated thereunder.  Accordingly, if a Participant is a
      Specified Employee for purposes of Section 409A and a payment subject to
      Section 409A 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).  The Company  reserves
      the right to accelerate, delay or modify distributions to the extent
      permitted under Section 409A.  Notwithstanding any provision of
      the Plan to the contrary, in no event shall the Committee or Board
      (or any member thereof), or the Company (or its employees, officers,
      directors or affiliates) have any liability to any Participant (or any
      other person) due to the failure of the Plan to satisfy the requirements
      of Section 409A or any other applicable law.

            

    

    

    
      	
              10.4.  

            	
              Unsecured
      General Creditor.   Notwithstanding any other
      provision of this Plan, Participants and Participants' Beneficiary shall
      be unsecured general creditors, with no secured or preferential rights to
      any assets of Company or any other party for payment of benefits under
      this Plan.  Any property held by Company for the purpose of
      generating the cash flow for benefit payments shall remain its general,
      unpledged and unrestricted assets.  Company's obligation under
      the Plan shall be an unfunded and unsecured promise to pay money in the
      future.

            

    

    

    
      	
              10.5.  

            	
              Trust
      Fund.   Company shall be responsible for the payment
      of all benefits provided under the Plan.  At its discretion,
      Company may establish one (1) or more trusts, with such trustees as the
      Board may approve, for the purpose of assisting in the payment of such
      benefits.  Although such a trust shall be irrevocable, its
      assets shall be held for payment of all Company's general creditors in the
      event of insolvency.  To the extent any benefits provided under
      the Plan are paid from any such trust, Company shall have no further
      obligation to pay them.  If not paid from the trust, such
      benefits shall remain the obligation of
Company.

            

    

    

    
      	
              10.6.  

            	
              Nonassignability. 
      Neither a Participant nor any other person shall have any right to
      commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise
      encumber, transfer, hypothecate or convey in advance of actual receipt the
      amounts, if any, payable hereunder. No part of the amounts payable shall,
      prior to actual payment, be subject to seizure or sequestration for the
      payment of any debts, judgements, alimony or separate maintenance owed by
      a Participant or any other person, nor be transferable by operation of law
      in the event of a Participant's or any other person's bankruptcy or
      insolvency.

            

    

    

    
      	
              10.7.  

            	
              Not
      a Contract of Employment.   This Plan shall not
      constitute a contract of employment between Company and the
      Participant.  Nothing in this Plan shall give a Participant the
      right to be retained in the service of Company or to interfere with the
      right of the Company to discipline or discharge a Participant at any
      time.

            

    

    

    
      	
              10.8.  

            	
              Protective
      Provisions.   A Participant will cooperate with
      Company by furnishing any and all information requested by Company, in
      order to facilitate the payment of benefits hereunder, and by taking such
      physical examinations as Company may deem necessary and taking such other
      action as may be requested by
Company.

            

    

    

    
      	
              10.9.  

            	
              Governing
      Law.   The provisions of this Plan shall be
      construed and interpreted according to the laws of the Commonwealth of
      Virginia, except as preempted by federal
law.

            

    

    

    
      	
              10.10.  

            	
              Validity.   If
      any provision of this Plan shall be held illegal or invalid for any
      reason, said illegality or invalidity shall not affect the remaining parts
      hereof, but this Plan shall be construed and enforced as if such illegal
      and invalid provision had never been inserted
  herein.

            

    

    

    
      	
              10.11.  

            	
              Notice.   Any
      notice required or permitted under the Plan shall be sufficient if in
      writing and hand delivered or sent by registered or certified
      mail.  Such notice shall be deemed given as of the date of
      delivery or, if delivery is made by mail, as of the date shown on the
      postmark on the receipt for registration or
      certification.  Mailed notice to the Committee shall be directed
      to the company's address.  Mailed notice to a Participant or
      Beneficiary shall be directed to the individual's last known address in
      company's records.

            

    

    

    
      	
              10.12.  

            	
              Successors.   The
      provisions of this Plan shall bind and inure to the benefit of Company and
      its successors and assigns.  The term successors as used herein
      shall include any corporate or other business entity which shall, whether
      by merger, consolidation, purchase or otherwise acquire all or
      substantially all of the business and assets of Company, and successors of
      any such corporation or other business
entity.

            

    

    

    

    ALPHA NATURAL RESOURCES,
INC

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
A

    Valuation
Funds as of January 1, 2008

    

                 
Moody’s Long-term Corporate Bond Monthly Average Corporate Rate

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

                 
Annex A

    

                 
Subsidiaries adopting this Plan

    

    Alpha
Coal Sales Co., LLC

    Alpha
Natural Resources Services, LLC

    AMFIRE
Mining Company, LLC

    Black Dog
Coal Corp.

    Brooks
Run Mining Company, LLC

    Dickenson-Russell
Coal Company, LLC

    Enterprise
Mining Company, LLC

    Herndon
Processing Company, LLC

    Kepler
Processing Company, LLC

    Kingwood
Mining Company, LLC

    Litwar
Processing Company, LLC

    Maxxim
Rebuild Co., LLC

    Maxxim
Shared Services, LLC

    Paramont
Coal Company Virginia, LLC

    Riverside
Energy Company, LLCexhibit10-19.htm

    Exhibit
10.19

    
      
         

         

        Alpha
Natural Resources, Inc.

        

        2005
Long-Term Incentive Plan

        Restated
as of November 8, 2007

      
        Section 1.  Purpose.  The
purpose of this 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 Plan are set forth in Appendix
A.

        

        Section 3.  Administration.  This Plan shall
be administered by the Committee.  The Committee shall have all the
powers vested in it by the terms of this Plan, such powers to include exclusive
authority to select the Eligible Persons to be granted Awards under this 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 Plan. Awards may, in the discretion of the Committee, be
made under this 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 Plan.

        

        The
Committee is authorized to interpret this Plan and the Awards granted under this
Plan, to establish, amend and rescind any rules and regulations relating to this
Plan, and to make any other determinations that it deems necessary or desirable
for the administration of this Plan. The Committee may correct any defect or
omission or reconcile any inconsistency in this 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 Plan, as described in this 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 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 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.

        

        Section 4.  Participation.  Consistent with
the purposes of this Plan, the Committee shall have exclusive power to select
the Eligible Persons who may participate in this Plan and be granted Awards
under this 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
Plan.

        

        (a)           Types of
Awards.  Awards under this 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 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 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 3,338,841 Common
Shares, subject to adjustment as provided in Section 15. No Eligible Person
may receive Awards under this Plan for more than 2,000,000 Common Shares in any
one fiscal year of Alpha, subject to adjustment as provided in Section 15.
Common Shares issued pursuant to this 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 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
instrument of ownership is issued to 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 instrument of ownership, if any, is issued. 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 is issued to such
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 disqualify the Incentive Stock Option’s status as such
under the Code. Each Stock Option granted or sold under this Plan shall be
evidenced by an agreement in such form as the Committee shall prescribe from
time to time in accordance with this Plan and shall comply with the applicable
terms and conditions of this Section and this 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 granted to an employee of Alpha or any
parent or subsidiary of Alpha, the exercise price shall not be less than the
Fair Market Value of the Common Shares subject to such Stock Option at the time
the Stock Option is granted, or 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 Plan
not be classified as Incentive Stock Options, that the Incentive Stock Options
granted under this 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
Plan; provided that such Stock Option (or portion thereof) otherwise complies
with this 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
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 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 Plan shall be evidenced by an agreement in such form as the Committee
shall prescribe from time to time in accordance with this Plan and shall comply
with the applicable terms and conditions of this Section and this 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 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.

        

        (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 Plan shall be evidenced by an agreement in
such form as the Committee shall prescribe from time to time in accordance with
this Plan and shall comply with the applicable terms and conditions of this
Section and this 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 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 Plan) shall have, after issuance of a
certificate 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 Plan
as determined by the Committee in its discretion), subject, however, to the
options, restrictions and limitations imposed thereon pursuant to this
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 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 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 (including such time or times as specified in an
applicable Award agreement), 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 and subject to the
terms of this Plan, the Committee may, in its discretion, determine and pay out
the Actual Value of any Performance Grant at any time during the Award
Period.

        

        Section 10.  Section
409A.
Notwithstanding any provision of the Plan or an Award agreement to the
contrary, if any Award or benefit provided under this Plan is subject to the
provisions of Section 409A, the provisions of the Plan and any applicable Award
agreement shall be administered, interpreted and construed in a manner necessary
in order to comply with Section 409A or an exception thereto (or disregarded to
the extent such provision cannot be so administered, interpreted or construed),
and the following provisions shall apply, as applicable:.

        

        (a)           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.

        

        (b)           For
purposes of Section 409A, and to the extent applicable to any Award or benefit
under the Plan, it is intended that distribution events qualify as permissible
distribution events for purposes of Section 409A and shall be interpreted and
construed accordingly. Whether a Participant has separated from service or
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.  For this
purpose, a Participant will be presumed to have experienced a separation from
service when the level of bona
fide services performed permanently decreases to a level less than twenty
percent (20%) of the average level of bona fide services performed
during the immediately preceding thirty-six (36) month period or such other
applicable period as provided by Section 409A.

        

        (c)           The
grant of Nonqualified Stock Options, Stock Appreciation Rights and other stock
rights subject to Section 409A shall be granted under terms and conditions
consistent with Treas. Reg. § 1.409A-1(b)(5) such that any such Award does not
constitute a deferral of compensation under Section
409A.  Accordingly, any such Award may be granted to Eligible Persons
of Alpha and its subsidiaries and affiliates in which Alpha has a controlling
interest.  In determining whether Alpha has a controlling interest,
the rules of Treas. Reg. § 1.414(c)-2(b)(2)(i) shall apply; provided that the
language "at least 50 percent" shall be used instead of "at least 80 percent" in
each place it appears; provided, further, where legitimate business reasons
exist (within the meaning of Treas. Reg. § 1.409A-1(b)(5)(iii)(E)(i)), the
language "at least 20 percent" shall be used instead of "at least 80 percent" in
each place it appears.  The rules of Treas. Reg. §§ 1.414(c)-3 and
1.414(c)-4 shall apply for purposes of determining ownership
interests.

        

        (d)           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 Section
409A.

        

        Section 11.  Deferred Payment
of Awards.  The Committee, in
its discretion, may specify the conditions under which the payment of all or any
portion of any cash compensation, or Common Shares or other form of payment
under an Award, may be deferred until a later date. Deferrals shall be for such
periods or until the occurrence of such events, and upon such terms and
conditions, as the Committee shall determine in its discretion, in accordance
with the provisions of Section 409A, the regulations and other binding guidance
promulgated thereunder; provided, however, that no deferral shall be permitted
with respect to Options or Stock Appreciation Rights.

        

        Section 12. Transferability
of Awards.  A Participant’s
rights and interest under this 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 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 Plan.  The terms of any
outstanding Award under this 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 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 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 Plan.

        

        Section 14.  Termination of a
Participant.  For all purposes
under this 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 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 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.

        

        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 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 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 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 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 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 Plan. Determinations made by the Committee under this Plan need
not be uniform and may be made selectively among Eligible Persons under this
Plan, whether or not such Eligible Persons are similarly situated. Neither this
Plan nor any action taken under this 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 Plan, the
Common Shares reserved for issuance under this 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 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 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 Plan and Awards hereunder comply in all
respects with Rule 16b-3 and Sections 162(m), 409A and 422, and (i) the
provisions of the Plan shall be administered, interpreted and construed in a
manner necessary to comply with Rule 16b-3 and Sections 162(m), 409A and 422,
the regulations issued thereunder or an exception thereto (or disregarded to the
extent the 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
and Sections 162(m),  409A and 422.

        

        (g)           The
Company shall have the right to deduct from any payment made under this 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 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 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 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 Plan or any
agreement evidencing such Participant’s Award.

        

        (i)           This
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 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 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 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 Plan or any Common Shares
issued pursuant to this 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 Plan,
and of its rules and regulations, and rights relating to this Plan and to Awards
granted under this 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 Plan or any
Award, unless determined by the Committee to be incorrect.

        

        (n)           If
any provision of this 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 Plan or any Award, but such provision shall be fully severable, and this
Plan or Award, as applicable, shall be construed and enforced as if the illegal
or invalid provision had never been included in this Plan or Award, as
applicable.

        

        (o)           The
terms of this Plan shall govern all Awards under this Plan and in no event shall
the Committee have the power to grant any Award under this Plan that is contrary
to any of the provisions of this Plan.

        

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

        

        Section 19.  Plan Amendment or
Suspension.  This 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 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 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
Plan to the extent necessary to conform the provisions of the Plan 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 Plan shall adversely affect
the rights of a Participant.

        

        Section 20.  Plan
Termination.  This 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 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 Plan for an additional
period of up to five years for the grant of Awards other than Incentive Stock
Options.

        

        No
termination of this 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 Plan, except that subsequent to
termination of this Plan, the Committee may make amendments or modifications
permitted under Section 13.

        

        Section 21.  Effective
Date.  This Plan shall
be effective, and Awards may be granted under this Plan, on or after the
Effective Date.

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        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
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 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
Plan, including administering certain Awards under this 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 Plan,
including administering certain Awards under this 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 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 Regulation §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 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 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 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.

        

        “Effective
Date” shall mean February 11, 2005.

        

        “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
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 Plan, 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
(ii) 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.

        

        “Plan”
shall mean this Alpha Natural Resources, Inc. 2005 Long-Term Incentive
Plan.

        

        “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.

        

        “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.

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