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    EXHIBIT
10.1

    

    Alpha
Natural Resources, Inc.

    

    2005
Long-Term Incentive Plan

     

    Amended
And Restated as of May 14, 2008

    

        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, Other Share-Based 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).

            

    

     

    
      	
               
      

            	
              (b)

            	
              Maximum Number of Common
      Shares that May be Issued.  The maximum aggregate number
      of Common Shares available for issuance under Awards granted under this
      Plan, including Incentive Stock Options, shall be 8,838,841. No Eligible
      Person may receive: (i) Stock Options or Stock Appreciation Rights under
      this Plan for more than 250,000 Common Shares in any one fiscal year of
      the Company; (ii) Performance Grants (denominated in Common Shares) for
      more than 250,000 Common Shares in
      any one fiscal year of the Company and (iii) Performance Grants
      (denominated in cash) for more than $5,000,000 in any one fiscal year of
      the Company. The foregoing limitations shall be subject to adjustment as
      provided in Section 16, but only to the extent that any such adjustment
      will not affect the status of:  (i) any Award intended to
      qualify as performance-based compensation under Section 162(m) of the
      Code; (ii) any Award intended to qualify as an Incentive Stock Option or
      (iii) any Award intended to comply with, or qualify for an exception
      to, Section 409A of the Code. 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 covered by an
      award terminate, lapse, are forfeited or cancelled, or such Award is
      otherwise settled without the delivery of the full number of Common Shares
      underlying the Award, including Common Shares withheld to satisfy tax
      withholding obligations, then such Common Shares to the extent of any such
      forfeiture, termination, lapse, cancellation, payment, etc., shall again
      be, or shall become available for issuance under this Plan; provided,
      however, that Common Shares (i) delivered in payment of the exercise price
      of a Stock Option, (ii) not issued upon the net settlement or net exercise
      of Stock Appreciation Rights, or (iii) delivered to or withheld by the
      Company to pay withholding taxes related to a Stock Option or Stock
      Appreciation Right, shall not become available again for issuance under
      this Plan.

            

    

     

    
      	
               
      

            	
              (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 evidence of
      ownership is issued to such Participant or until Participant's ownership
      of such Common Shares shall have been entered into the books of the
      registrar in the case of uncertificated
shares.

            

    

     

        Section 6.  Stock
Options.  The Committee may
grant Stock 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 within the meaning of Code Sections 424(e)
and (f), including a subsidiary which becomes such after adoption of the
plan.  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 shall not be less than the Fair Market
      Value of the Common Shares subject to such Stock Option on the date of
      grant, as determined by the Committee; provided, however, if
      an Incentive Stock Option is 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.

            

    

     

    
      	
               
      

            	
              (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(h).

            

    

     

    
      	
               
      

            	
              (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)

            	
              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 and
      shall not be exercisable after the expiration of ten years from the date
      it is granted.

            

    

     

    
      	
               
      

            	
              (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 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 portion thereof, that is so exercised or
      surrendered, as the case may be.  Stock Appreciation Rights
      shall have an exercise price no less than the Fair Market Value of the
      Common Shares covered by the right on the date of
  grant.

            

    

     

    
      	
               
      

            	
              (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 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 or otherwise evidence of ownership representing the
      Common Shares subject to such Award. The standard vesting schedule
      applicable to Awards of Restricted Stock and Restricted Stock Units shall
      provide for vesting of such Awards, in one or more increments, over a
      service period of no less than three years; provided, however, this
      limitation shall not apply to Awards granted to non-employee directors of
      the Board that are received pursuant to the Company's compensation program
      applicable to non-employee directors of the Board, or adversely affect a
      Participant's rights under another plan or agreement with the
      Company.

            

    

     

    
      	
               
      

            	
              (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 (or
      after the Participant's ownership of such Common Shares shall have been
      entered into the books of the registrar in the case of uncertificated
      shares) 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 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 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.

     

    
      
        	
                 
      

              	
                (a)

              	
                Grant.  Subject to the limitations set forth in Section
      5(b), the Committee shall have sole and complete authority to determine
      the Eligible Persons who shall receive a Performance Grant which shall
      consist of a right that is (i) denominated in cash, Common Shares or any
      other form of Award issuable under this Plan (or any combination thereof),
      (ii) valued, as determined by the Committee, in accordance with the
      achievement of such performance goals during such performance periods as
      the Committee shall establish and (iii) payable at such time and in such
      form as the Committee shall determine. Unless otherwise determined by the
      Committee, any such Performance Grant shall be evidenced by an Award
      agreement containing the terms of the Award, including, but not limited
      to, the performance criteria and such terms and conditions as may be
      determined, from time to time, by the Committee, in each case, not
      inconsistent with this Plan.  In relation to any Performance
      Grant, the performance period may consist of one or more calendar years or
      other fiscal period of at least 12 months in length for which performance
      is being measured.
      
                   

                

              

      

       

    

    
      	
               
      

            	
              (b)

            	
              Terms and
      Conditions.  For Awards intended to be performance-based
      compensation under Section 162(m) of the Code, Performance Grants shall be
      conditioned upon the achievement of pre-established goals relating to one
      or more of the following performance measures, as determined in writing by
      the Committee and subject to such modifications as specified by the
      Committee: cash flow; cash flow from operations; earnings (including, but
      not limited to, earnings before interest, taxes, depreciation and
      amortization or some variation thereof); earnings per share, diluted or
      basic; earnings per share from continuing operations; net asset turnover;
      inventory turnover; capital expenditures; debt; debt reduction; working
      capital; return on investment; return on sales; net or gross sales; market
      share; economic value added; cost of capital; change in assets; expense
      reduction levels; productivity; delivery performance; safety record and/or
      performance; stock price; return on equity; total or relative increases to
      stockholder return; return on invested capital; return on assets or net
      assets; revenue; income or net income; operating income or net operating
      income; operating profit or net operating profit; gross margin, operating
      margin or profit margin; and completion of acquisitions, business
      expansion, product diversification, new or expanded market penetration,
      and other non-financial operating and management performance objectives.
      To the extent consistent with Section 162(m) of the Code, the Committee
      may determine, at the time the performance goals are established, that
      certain adjustments shall apply, in whole or in part, in such manner as
      determined by the Committee, to exclude the effect of any of the following
      events that occur during a performance period: the impairment of tangible
      or intangible assets; litigation or claim judgments or settlements; the
      effect of changes in tax law, accounting principles or other such laws or
      provisions affecting reported results; business combinations,
      reorganizations and/or restructuring programs, including, but not limited
      to, reductions in force and early retirement incentives; currency
      fluctuations; and any extraordinary, unusual, infrequent or non-recurring
      items, including, but not limited to, such items described in management’s
      discussion and analysis of financial condition and results of operations
      or the financial statements and notes thereto appearing in Alpha's annual
      report for the applicable period. Performance measures may be determined
      either individually, alternatively or in any combination, applied to
      either the Company as a whole or to a business unit or subsidiary entity
      thereof, either individually, alternatively or in any combination, and
      measured over a period of time including any portion of a year, annually
      or cumulatively over a period of years, on an absolute basis or relative
      to a pre-established target, to previous fiscal years’ results or to a
      designated comparison group, in each case as specified by the
      Committee.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Preestablished Performance
      Goals.  For Awards intended to be performance-based
      compensation under Section 162(m) of the Code, performance goals relating
      to the performance measures set forth above shall be preestablished in
      writing by the Committee, and achievement thereof certified in writing
      prior to payment of the Award, as required by Section 162(m) and
      Treasury Regulations promulgated thereunder. All such performance goals
      shall be established in writing no later than ninety (90) days after the
      beginning of the applicable performance period; provided, however, that for a
      performance period of less than one (1) year, the Committee shall take any
      such actions prior to the lapse of 25% of the performance period. In
      addition to establishing minimum performance goals below which no
      compensation shall be payable pursuant to a Performance Grant, the
      Committee, in its sole discretion, may create a performance schedule under
      which an amount less than or more than the target award may be paid so
      long as the performance goals have been
  achieved.

            

    

    

    
      	
               
      

            	
              (d)

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

            

    

    

    
      	
               
      

            	
              (e)

            	
              Payment of Performance
      Awards.  Performance Grants may be paid in a lump sum or
      in installments following the close of the performance period or, in
      accordance with procedures established by the Committee, on a deferred
      basis.

            

    

     

        Section
10.  Other Share-Based
Awards.  The Committee shall have authority to grant to
Eligible Persons Other Share-Based Awards, which shall consist of any right that
is (i) not an Award described in Sections 6 through 9 above and (ii) an Award of
Common Shares or an Award denominated or payable in, valued in whole or in part
by reference to, or otherwise based on or related to, Common Shares (including,
without limitation, securities convertible into Common Shares), as deemed by the
Committee to be consistent with the purposes of this Plan. Subject to the terms
of this Plan and any applicable Award agreement, the Committee shall determine
the terms and conditions of any such Other Share-Based Award.

     

        Section 11.  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 12.  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 13.
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 14.  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: (i) accelerate the vesting or
exercisability of any Awards other than in connection with a Participant's
death, disability, retirement or a change in control or other transaction
contemplated by Section 16 hereof; provided further, the
foregoing limitation shall not apply to (A) Awards for up to five percent (5%)
of the aggregate number of Common Shares authorized for issuance under the Plan,
or (B) any Performance Grant the payment of which remains contingent upon the
attainment of the performance goal; or (ii) 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.  Notwithstanding any provision of this Plan to the contrary,
neither the Board nor the Committee may, without stockholder approval, reduce
the exercise price of any outstanding Stock Option or Stock Appreciation Right
or take any other action with respect to outstanding Stock Options or Stock
Appreciation Rights that is treated as a repricing of such Stock Options or
Stock Appreciation Rights under generally accepted accounting principles (unless
otherwise permitted by applicable listing standards).

     

        Section 15.  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 16.  Dilution and
Other Adjustments.  In the event a
dividend (other than a regular cash dividend) or other distribution (whether in
the form of cash, Common Shares, Other Alpha Securities or other property),
recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of Common
Shares or Other Alpha Securities, issuance of warrants or other rights to
purchase Common Shares or Other Alpha Securities or other similar corporate
transaction or event affects the Common Shares such that an adjustment is
determined by the Committee to be necessary in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under this Plan, then the Committee shall, in an equitable manner, (i) adjust
any or all of (a) the aggregate maximum number of Common Shares or Other Alpha
Securities (or number and kind of other securities or property) with respect to
which Awards may be granted under this Plan pursuant to Section 5(b), (b)
the individual maximum number of Common Shares that may be granted as Stock
Options, Stock Appreciation Rights and Performance Grants (denominated in Common
Shares) to a Participant pursuant to Section 5(b) of this Plan, (c) the
number of Common Shares or Other Alpha Securities (or number and kind of other
securities or property) subject to outstanding Awards and (d) the grant or
exercise price with respect to any outstanding Award; (ii) if deemed
appropriate, provide for an equivalent Award or substitute Award in respect of
securities of the surviving entity of any merger, consolidation or other
transaction or event having a similar effect; or (iii) if deemed appropriate,
make provision for a cash payment to the holder of an outstanding Award;
provided, that, in each case, any such adjustment shall be performed in
accordance with the applicable provisions of Code and the Treasury Regulations
issued thereunder so as to not affect the status of: (A) any Award intended to
qualify as performance-based compensation under Section 162(m) of the Code;
(B) any Award intended to qualify as an Incentive Stock Option under
Section 422 of the Code or (C) any Award intended to comply with, or
qualify for an exception to, Section 409A of the Code. Unless otherwise provided
by the Committee, all outstanding Awards shall terminate immediately prior to
the consummation of any dissolution or liquidation of the Company. Any such
termination or adjustment made by the Committee will be final, conclusive and
binding for all purposes of this Plan.

     

        Section 17.  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 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)

            	
              Notwithstanding
      anything to the contrary contained in this Plan or in any Award agreement,
      each Award shall be subject to the requirement, if at any time the
      Committee shall determine, in its sole discretion, that such requirement
      shall apply, that the listing, registration or qualification of any Award
      under this Plan, or of the Common Shares, Other Alpha Securities or
      property or other forms of payment issuable pursuant to any Award under
      this Plan, on any stock exchange or other market quotation system or under
      any federal or state law, or the consent or approval of any government
      regulatory body, is necessary or desirable as a condition of, or in
      connection with, the granting of such Award or the exercise or settlement
      thereof, such Award shall not be granted, exercised or settled in whole or
      in part until such listing, registration, qualification, consent or
      approval shall have been effected, obtained and maintained free of any
      conditions not acceptable to the Committee. Notwithstanding anything to
      the contrary contained in this Plan or in any Award agreement, no Common
      Shares, Other Alpha Securities or property or other forms of payment shall
      be issued under this Plan with respect to any Award unless the Committee
      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 such Common Shares are
      listed.  If the Committee determines that the exercise of any
      Stock Option or Stock Appreciation Right would fail to comply with any
      applicable law or any applicable rules of any stock exchange or other
      market quotation system on which Common Shares are listed, the Participant
      holding such Stock Option or Stock Appreciation Right shall have no right
      to exercise such Stock Option or Stock Appreciation Right until such time
      as the Committee shall have determined that such exercise will not violate
      any applicable law or any such applicable rule, provided that such Stock
      Option or Stock Appreciation Right shall not have expired prior to such
      time.

            

    

     

    
      	
               
      

            	
              (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 market value equal to the amount of such taxes); provided,
      however, that any broker-assisted cashless exercise shall comply with the
      requirements for equity classification 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; provided
that no such change or amendment shall be made without stockholder approval if
such approval is necessary to qualify for or comply with any tax or regulatory
requirement or other applicable law for which the Committee deems it necessary
or desirable to qualify or comply. 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 14.  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.

                

        

         

      

    

    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 14.

     

        Section 21.  Effective
Date.  This Plan was
originally adopted and effective February 11, 2005 and, as amended and restated,
shall be effective May 14, 2008 (the "Effective
Date"), subject to its approval by the stockholders of Alpha; provided that, no
Incentive Stock Options shall be exercisable under the Plan unless the
stockholders of Alpha approve the Plan within twelve (12) months after the
Effective Date of this amendment and restatement; provided, further, no
award granted after the Effective Date that is intended to be performance-based
within the meaning of Section 162(m) shall be paid prior to stockholder approval
of the material terms of the Plan. With respect to Awards
granted under the Plan prior to the Effective Date, all such Awards are intended
to be exempt from the deduction limitations of Section 162(m) pursuant to the
provisions of Treasury Regulation § 1.162-27(f) and this Plan and all such
Awards shall be administered, interpreted and construed in a manner necessary to
comply with Treasury Regulation § 1.162-27(f) (or disregarded to the extent such
provision cannot be so administered, interpreted or construed).

     

        Section 22.  Governing
Law.  This Plan and any Award granted under this Plan as well
as any determinations made or actions taken under this Plan shall be governed
by, and construed and enforced in accordance with, the internal laws of the
State of Delaware without regard to its choice or conflicts of laws
principles.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    APPENDIX
A

     

     

        The following
terms shall have the meaning indicated:

     

        “Alpha”
shall mean Alpha Natural Resources, Inc., a Delaware corporation.

     

        “Award”
shall mean an award of rights to an Eligible Person under this
Plan.

     

        “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; provided, however,
that a Board Committee must approve Awards granted to non-employee directors of
the Board. 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.
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, affiliate or subsidiary of Alpha, including any
affiliates or subsidiaries which become such after adoption of this Plan.

     

        “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 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” has the meaning set forth in Section 21.

     

        “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.

     

        “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 any other
form of award issuable under this Plan 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.

     

        “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 within the
meaning of Code Sections 424(e) and (f).

     

        “Treasury
Regulation” shall mean a final, proposed or temporary regulation of the
Department of Treasury under the Code and any successor
regulation.ex102.htm

    EXHIBIT
10.2

    

    

    

    ALPHA
NATURAL RESOURCES, INC.

     

    2008 ANNUAL INCENTIVE BONUS
PLAN

     

    Effective
as of May 14, 2008

    

    

    1.           Purpose of the
Plan

    

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

    

    2.           Definitions

    

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

    

    (a)           “Board” means the Board of
Directors of the Company.

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    (k)           “Retirement” means retirement
of an employee as determined and authorized by the Committee.

    

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

    

    3.           Administration of the
Plan

    

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

    

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

    

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

    

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

    

    4.           Participation in the
Plan

    

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

    

    5.           Incentive Compensation
Awards

    

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

    

    (b)           With
respect to awards that are intended to be performance-based compensation under
Section 162(m) of the Code, each award shall be conditioned upon the Company’s
achievement of one or more Performance Goal(s) with respect to the Performance
Measure(s) established by the Committee. No later than ninety (90) days after
the beginning of the applicable Performance Period, the Committee shall
establish in writing the Performance Goals, Performance Measures and the
method(s) for computing the amount of compensation which will be payable under
the Plan to each Participant if the Performance Goals established by the
Committee are attained; provided however, that for a Performance Period of less
than one year, the Committee shall take any such actions prior to the lapse of
25% of the Performance Period. In addition to establishing minimum Performance
Goals below which no compensation shall be payable pursuant to an award, the
Committee, in its discretion, may create a performance schedule under which an
amount less than or more than the target award may be paid so long as the
Performance Goals have been achieved.

    

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

    

    6.           Payment of Individual Incentive
Awards

    

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

    

    (b)           Unless
otherwise determined by the Committee, Participants who have terminated
employment with the Company prior to the end of a Performance Period for any
reason other than death, Retirement or Total and Permanent Disability, shall
Forfeit any and all rights to payment under any awards then outstanding under
the terms of the Plan and shall not be entitled to any cash payment for such
period.  If a Participant's employment with the Company should
terminate during a Performance Period by reason of death, Retirement or Total
and Permanent Disability, the Participant's award shall be prorated to reflect
the period of service prior to his/her death, Retirement or Total and Permanent
Disability, and shall be paid either to the Participant or, as appropriate, the
Participant's estate, subject to the Committee's certification that the
applicable Performance Goals and other material terms have been
met.

    

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

    

    7.           Amendment or Termination of the
Plan

    

    While the
Company intends that the Plan shall continue in force from year to year, the
Company reserves the right to amend, modify or terminate the Plan, at any time;
provided, however, that no such modification, amendment or termination shall,
without the consent of the Participant, materially adversely affect the rights
of such Participant to any payment that has been determined by the Committee to
be due and owing to the Participant under the Plan but not yet
paid.  Any and all actions permitted under this Section 7 may be
authorized and performed by the Committee in its sole and absolute
discretion.

    

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

    

    8.           Rights Not
Transferable

    

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

    

    9.           Funding/Payment

    

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

    

    10.           Withholdings

    

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

    

    11.           No Employment or Service
Rights

    

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

    

    12.           Other Compensation
Plans

    

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

    

    13.           Governing Law

    

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

    

    14.           Effective Date

    

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

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