Document:

exv10w21

EXHIBIT 10.21

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

November 10, 2010

Ladies and Gentlemen:

     Reference is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement — Standard Terms (the “Securities Purchase Agreement”), dated as of the date set forth
on Schedule A hereto, between the United States Department of the Treasury (the “Investor”) and the
company set forth on Schedule A hereto (the “Company”). Capitalized terms used but not defined
herein shall have the meanings assigned to them in the Securities Purchase Agreement. Pursuant to
the Securities Purchase Agreement, at the Closing, the Company issued to the Investor the number of
shares of the series of its preferred stock set forth on Schedule A hereto (the “Preferred Shares”)
and a warrant to purchase the number of shares of its common stock set forth on Schedule A hereto
(the “Warrant”).

     In connection with the consummation of the repurchase (the “Repurchase”) by the Company from
the Investor, on the date hereof, of the number of Preferred Shares listed on Schedule A hereto
(the “Repurchased Preferred Shares”), as permitted by the Emergency Economic Stabilization Act of
2008, as amended by the American Recovery and Reinvestment Act of 2009:

	 	(a)	 	The Company hereby acknowledges receipt from the Investor of the share
certificate(s) set forth on Schedule A hereto representing the Preferred Shares; and
	 
	 	(b)	 	The Investor hereby acknowledges receipt from the Company of a wire transfer to the
account of the Investor set forth on Schedule A hereto in immediately available funds of the
aggregate purchase price set forth on Schedule A hereto, representing payment in full for
the Repurchased Preferred Shares at a price per share equal to the Liquidation Amount per
share, together with any accrued and unpaid dividends to, but excluding, the date hereof;
and
	 
	 	(c)	 	The Investor hereby acknowledges receipt from the Company of a share certificate
for the number of Preferred Shares set forth on Schedule A hereto, equal to the difference
between the Preferred Shares represented by the certificate referenced in clause (a) above
and the Repurchased Preferred Shares.

     This letter agreement will be governed by and construed in accordance with the federal law of
the United States if and to the extent such law is applicable, and otherwise in accordance with the
laws of the State of New York applicable to contracts made and to be performed entirely within such
State.

 

 

     This letter agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts will together
constitute the same agreement. Executed signature pages to this letter agreement may be delivered
by facsimile and such facsimiles will be deemed sufficient as if actual signature pages had been
delivered.

[Remainder of this page intentionally left blank]

 

 

     In witness whereof, the parties have duly executed this letter agreement as of the date first
written above.

	 	 	 	 	 

	 	 	UNITED STATES DEPARTMENT OF THE TREASURY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COMPANY: Horizon Bancorp
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Mark E. Secor
	 

	 	 	 	Title: CFO

 

 

SCHEDULE A

	 	 	 	 	 	 	 

	General Information:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date of Letter Agreement incorporating the

Securities Purchase Agreement:
	 	December 19, 2008

	 
	 	 	 	 	 	 
	 

	 	Name of the Company:
	 	Horizon Bancorp

	 
	 	 	 	 	 	 
	 

	 	Corporate or other organizational form of the
Company:
	 	Corporation

	 
	 	 	 	 	 	 
	 

	 	Jurisdiction of organization of the Company:
	 	State of Indiana

	 
	 	 	 	 	 	 
	 

	 	Number and series of preferred stock issued

to the Investor at the Closing:
	 	25,000 preferred shares, $1,000 liquidation value,

Fixed Rate Cumulative Perpetual Preferred Stock,

Series A

	 
	 	 	 	 	 	 
	 

	 	Number of Initial Warrant Shares:
	 	212,104
	 
	 	 	 	 	 	 
	Terms of the Repurchase:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Number of Preferred Shares repurchased by the
Company:
	 	6,250
	 
	 	 	 	 	 	 
	 

	 	Share certificate number (representing the

Preferred Shares previously issued to the

Investor at the Closing):
	 	Certificate Number A-1

	 
	 	 	 	 	 	 
	 

	 	Per share Liquidation Amount of Preferred
Shares:
	 	$1,000
	 
	 	 	 	 	 	 
	 

	 	Accrued and unpaid dividends on Preferred
Shares:
	 	$73,784.72
	 
	 	 	 	 	 	 
	 

	 	Aggregate purchase price for Repurchased

Preferred Shares:
	 	$6,323,784.72
	 
	 	 	 	 	 	 
	 

	 	Difference between the Preferred Shares and the
Repurchased Preferred Shares:
	 	18,750	 
	 
	 	 	 	 	 	 
	Investor wire information for payment of purchase
price:	 	ABA Number: 021000018

Bank: The Bank of New York Mellon

Account Name: BETA EESA Preferred Account

Account Number: GLA/111567Exhibit 10.10

Exhibit 10.10

	 	 	 
	

WESTMORELAND COAL COMPANY
	 	Number: GP- 33             
                  Page
1 of 9

Issue/Revision Date:      March 9, 2011

Supersedes Policy: GP-33 dated 06/01/2010
& Previously Issued Letters and Memos

	 	 	 	 	 
	Title: Annual Incentive Policy
(AIP)/Long Term
 Incentive Policy (LTIP) Policy
	
Approved Issuing Officer:

 	 
	/s/ Keith E. Alessi
 
	Name:  	Keith E. Alessi 	 
	Title:  	Chief Executive Officer (CEO) 	 

POLICY STATEMENT

It is the policy of Westmoreland Coal Company and its subsidiaries, hereinafter collectively “the
Company,” to compensate designated employees with annual financial incentives for the
accomplishment of key strategic goals and objectives, both short term and long term, intended to
promote financial performance, productivity and safety. For short term incentives, Westmoreland
Coal Company provides to designated employees an Annual Incentive Policy (AIP), payable based on
the achievement of performance measures. Additionally, Westmoreland Coal Company provides Long
Term Incentive Policy (LTIP) to designated employees based on the employee’s base salary, his/her
position within the Company, and the achievement of performance measures. Both the AIP and LTIP
are administered through this Annual Incentive Policy (AIP)/Long Term Incentive Policy (LTIP)
Policy (the “Policy”).

ELIGIBILITY

You are an “Eligible Employee” if you meet all the following conditions:

	 	•	 	You are an employee designated by the Company to be eligible as per the addendum;

	 	•	 	You are an active full-time employee of the Company, scheduled to work at least 40 hours
per week, in good standing; and

	 	•	 	You are employed by the Company on October 1 during the Policy year. Policy year is
defined as January 1 through December 31.

ANNUAL INCENTIVE POLICY PROCEDURES (AIP)

DETERMINATION AND PAYMENT OF AIP PAYMENTS

The Company measures the accomplishments of our employees based on financial, safety, and
individual components. The “Targeted Amount” of the incentive is based on a percentage of the
employee’s base salary relative to the employee’s position within the Company.

Financial Goals — are based on the Company attaining or exceeding its performance commitment(s)
specified by identified metrics. Financial Goals have a threshold, target, and maximum.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 2 of 9

Safety Goals — are based on the actual Mine Safety & Health Administration (MSHA) Reportable
Incident Rate (RIR) for the coal industry (strip mines, preparation plants and independent
shops/yards). Safety Goals have a threshold, target, and maximum.

Individual Qualitative Goals — are based on achievement of two to three individual objectives and
may be pro-rated dependent upon the accomplishment thereof.

The components of the Company’s AIP — Financial Goals, Safety Goals, and Individual Qualitative
Goals — have different weight and emphasis depending on whether the employee is in Operations or at
Corporate. Employees have the opportunity to earn more than 100% of their individual qualitative
goals, based on exemplary achievement of these performance objectives as evaluated by their manager
and approved by the Chief Executive Officer (CEO) and the Vice President, Human Resources and
Administration.

Operations Management

For those eligible employees in Operations, the following allocation guidelines will apply relative
to distributions earned pursuant to the AIP based on the employee’s position in the Company:

	 	•	 	Mine Manager

	 	•	 	Operation Specific Financial Goals — 40%

	 
	 	•	 	Individual Qualitative Goals — 30%

	 
	 	•	 	Operation Specific Safety Goals — 30%

	 	•	 	Grades 9 & 10

	 	•	 	Operation Specific Financial Goals — 10%

	 
	 	•	 	Individual Qualitative Goals — 60%

	 
	 	•	 	Operation Specific Safety Goals — 30%

Financial Goals: The Financial Goal is based on the Operation’s (mine’s or division’s) specific
performance metrics.

	 	•	 	Financial Threshold: Financial Threshold is defined as meeting 80% of the performance
commitment(s) specified by the identified metrics. Fifty percent (50%) of the Financial
Goal will be eligible for payment pursuant to the Policy upon achieving the specified
Financial Threshold. Under no circumstances will a payout of the Financial Goal incentive
be made if performance fails to meet the Financial Threshold.

	 	•	 	Financial Target: Financial Target is defined as meeting the performance commitment(s)
specified by the identified metrics. One hundred percent (100%) of the Financial Goal will
be eligible for payment pursuant to the Policy upon achieving the specified Financial
Target. Performance results that fall between Financial Threshold and Financial Target
will result in a prorated calculation and payout between 50% and 100%.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 3 of 9

	 	•	 	Financial Maximum: Financial Maximum is defined as exceeding Financial Target by 20%.
Two hundred percent (200%) of the Financial Goal will be eligible for payment pursuant to
the Policy upon achieving Financial Maximum. Performance results that fall between
Financial Target and Financial Maximum will result in a prorated calculation and payout
between 100% and 200%. Two hundred percent (200%) is the maximum payout of the Financial
Goal even if performance exceeds Financial Maximum.

Safety Goals: Thirty percent (30%) of annual Targeted Amount will be based upon achieving the
following Safety Goals for each mine.

	 	•	 	Safety Threshold: Safety Threshold is defined as meeting the annual National MSHA
average for RIR for the coal industry (strip mines, preparation plants, and independent
shops/yards). Fifty percent (50%) of the Safety Goal will be eligible for payment pursuant
to the Policy upon achieving Safety Threshold. Under no circumstances will a payout of the
Safety Goal incentive be made if performance fails to meet Safety Threshold.

	 	•	 	Safety Target: Safety Target is defined as safety performance that is 25% better than
Safety Threshold. One hundred percent (100%) of the Safety Goal will be eligible for
payment pursuant to the Policy upon achieving Safety Target. Results falling between
Safety Threshold and Safety Target will result in a prorated calculation and payout between
50% and 100%.

	 	•	 	Safety Maximum: Safety Maximum is defined as safety performance that is 50% better than
Safety Threshold. Two hundred percent (200%) of the Safety Goal will be eligible for
payment pursuant to the Policy upon achieving Safety Maximum. Results falling between
Safety Target and Safety Maximum will result in a prorated calculation and payout between
100% and 200%. Two hundred percent (200%) is the maximum payout of the Safety Goal, even
if performance exceeds Safety Maximum.

Individual Qualitative Goals: The Individual Qualitative Goal incentive payment is based on
achievement of certain individual goals that are tied to corporate initiatives.

	 	•	 	The percentage payout will be evaluated on achievement of certain individual goals
established between the employee and his/her manager and will be based on the employee’s
overall performance evaluation. For the Individual Qualitative Goal, employees and their
manager will select two to three goals for the purpose of the AIP. These goals should be
defined in writing by the first of the year, but in no case later than March 31 of each
Policy Year (or in the event that an employee is hired after the first of the year, on or
within 30 days of the employee’s date of hire). All goals are to be “SMART” goals in that
they are Specific, Measurable, Aligned, Realistic, and Time-bound. The individual goals
will require approval by the Company’s CEO and the Vice President, Human Resources and
Administration. The individual goals cannot be related to safety or financial performance.
Further, there will be no payout for individual goals if a person is deemed responsible for
a material deficiency relative to the Sarbanes-Oxley Act. Westmoreland Coal Company
reserves the right to recuperate any previous payouts made if gross omission or error is
discovered after the fact.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 4 of 9

Corporate Management 

If an employee is considered to be an eligible corporate employee, the following guidelines will
apply relative to his/her AIP based on the employee’s position in the Company:

	 	•	 	Executive (CEO, CFO, EVP, VP of Coal Operations)

	 	•	 	Corporate Financial Goals — 60%

	 
	 	•	 	Individual Qualitative Goals — 40%

	 	•	 	SVP of Coal Operations/COO

	 	•	 	Corporate Financial Goals — 40%

	 
	 	•	 	Individual Qualitative Goals — 30%

	 
	 	•	 	Aggregate Mine Operation Specific Safety Goals — 30%

	 	•	 	Vice Presidents

	 	•	 	Corporate Financial Goals — 30%

	 
	 	•	 	Business Unit Financial Goals — 40%

	 
	 	•	 	Individual Qualitative Goals — 30%

	 	•	 	Vice President of Engineering

	 	•	 	Business Unit Financial Goals — 40%

	 
	 	•	 	Individual Qualitative Goals — 30%

	 
	 	•	 	Aggregate Mine Specific Operation Safety Goals — 30%

	 	•	 	Directors and Managers

	 	•	 	Corporate Financial Goals — 10%

	 
	 	•	 	Business Unit Financial Goals — 10%

	 
	 	•	 	Individual Qualitative Goals — 80%

If an employee is re-assigned from a position in operations management to a position in corporate
management, his/her goals will be pro-rated accordingly and would include the safety goal for the
period of time he/she was in the operations management position. The reverse situation (a
corporate management position to an operations management position) would also be pro-rated.

Financial Goals: The Corporate Financial Goals are based on the corporate performance
commitment(s) specified by the identified metrics.

	 	•	 	Financial Threshold: Financial Threshold is defined as meeting 80% of the performance
commitment(s) specified by the identified metrics. Fifty percent (50%) of the Financial
Goal will be eligible for payment pursuant to the Policy upon achieving the specified
Financial Threshold. Under no circumstances will a payout of the Financial Goal incentive
be made if performance fails to meet the Financial Threshold.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 5 of 9

	 	•	 	Financial Target: Financial Target is defined as meeting the performance commitment(s)
specified by the identified metrics. One hundred percent (100%) of the Financial Goal will
be eligible for payment pursuant to the Policy upon achieving the specified Financial
Target.
Performance results that fall between Financial Threshold and Financial Target will result
in a prorated calculation and payout between 50% and 100%.

	 	•	 	Financial Maximum: Financial Maximum is defined as exceeding Financial Target by 20%.
Two hundred percent (200%) of the Financial Goal will be eligible for payment pursuant to
the Policy upon achieving Financial Maximum. Performance results that fall between
Financial Target and Financial Maximum will result in a prorated calculation and payout
between 100% and 200%. Two hundred percent (200%) is the maximum payout of the Financial
Goal even if performance exceeds Financial Maximum.

Business Unit Financials: The percentage of payout will be based on the average achievement of the
financial performance metrics of all operating mine sites aggregated, exclusive of power plant
operations. The financial metrics will use the same Financial Target, Threshold, and Maximum
guidelines above.

Individual Qualitative Goals: The Individual Qualitative Goal is based on achievement of certain
individual goals.

	 	•	 	The percentage payout will be evaluated on achievement of certain individual goals
established between the employee and his/her manager (or the Board of Directors for the
CEO) and will be based on the employee’s overall performance evaluation. For the
Individual Qualitative Goal, employees and their manager (or the CEO and the Board of
Directors) will select two to three goals for the purpose of the AIP. These goals should
be defined in writing by the first of the year, but in no case later than March 31 of each
Policy Year (or in the event that an employee is hired after the first of the year, on or
within 30 days of the employee’s date of hire). All goals are to be “SMART” goals in that
they are Specific, Measurable, Aligned, Realistic, and Time-bound. The individual goals
will require approval by the Company’s CEO and the Vice President, Human Resources and
Administration. The individual goals cannot be related to safety or financial performance.
Further, there will be no payout for individual goals if a person is deemed responsible for
a material deficiency relative to the Sarbanes-Oxley Act. Westmoreland Coal Company
reserves the right to recuperate any previous payouts made if gross omission or error is
discovered after the fact.

AIP PROVISIONS

The following are important Policy terms and conditions.

	 	•	 	Any incentive award may be adjusted either upward or downward at the sole discretion of
the Company’s CEO, based upon individual performance and/or other factors regardless of
whether it is earned in accordance with this and/or any other document.

	 	•	 	At the discretion of the Board of Directors, the AIP awards may be payable in cash or
the Company’s common stock.

	 	•	 	Awards are capped at two times target for each Financial and Safety Goals.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 6 of 9

	 	•	 	All incentive awards granted will be calculated based upon the participant’s base salary
earned during the 12 months ending on December 31 of the applicable year excluding bonuses,
disability pay continuation, vacation or flexleave sell back, or other non-salary
allowances, i.e. clothing allowance.

	 	•	 	A participant must be employed by the Company on the date the incentive payments are
distributed in order to receive any payment under the Policy, except as approved by the
Compensation and Benefits (C&B) Committee.

	 	•	 	The C&B Committee shall approve the performance commitment(s) specified by the
identified metrics each year.

	 	•	 	Incentive awards will be distributed following completion of the Company’s consolidated
annual audit and approval of the payout by the Company’s C&B Committee or approval of the
payout by the Board of Directors for the CEO, typically at the end of the first quarter of
the subsequent year.

	 	•	 	Taxes, deferrals (401(k)) and distributions that are required to be withheld by federal,
state or local or other governmental authority shall be deducted from all cash payments.

	 	•	 	Any incentive award for a newly hired or promoted participant will be based upon the
base salary earned from his/her date of hire or promotion to December 31.

	 	•	 	No member of the Board of Directors or the C&B Committee shall be liable for any action
taken or determination made in good faith with respect to the AIP.

	 	•	 	Receipt of any portion of the incentive award is subject to all terms and conditions
described in this Policy.

	 	•	 	Participation in this Policy is neither a contract nor a guarantee of continuing
employment.

	 	•	 	This Policy may be modified, suspended or terminated at any time by the Company and no
participant has any entitlement until the annual payout is made.

	 	•	 	The Company’s CEO has final say on the interpretation of this Policy and procedures,
except where the CEO is directly impacted in which case the C&B Committee has final say on
the interpretation of this Policy.

LONG TERM INCENTIVE POLICY (LTIP) PROCEDURES

DETERMINATION AND GRANTING OF LTIP PERFORMANCE AWARDS

For eligible employees, the “Targeted Amount” of the employee LTIP award is based on a percentage
of the employee’s base salary and the employee’s position within the Company. Awards of the
Company’s common stock granted pursuant to the Policy can be both time-based and performance-based.
Additionally, the Company may elect to make awards in cash or restricted stock units (RSUs).

	 	•	 	Performance against Company goals will determine the number of shares earned.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 7 of 9

	 	•	 	The stock price at the end of the performance period will determine the value of the
 shares earned.

	 	•	 	Performance-based shares are defined as shares that may be earned to the degree that
specific strategic and financial performance measures are met and will be eligible for
distribution if performance is at or above threshold when measured at the end of a
three-year period.

	 	•	 	Time-based shares are defined as shares that are earned over a set period of time.

Vesting and Earning of Shares

	 	•	 	Time-based shares will vest in equal annual installments over a three-year period based
on completion of the service requirement.

	 	•	 	Performance-based shares will be earned to the degree that performance exceeds a
determined threshold. These performance-based shares will vest at the end of the
three-year period.

	 	•	 	Threshold is defined as meeting 80% of the performance metrics and will payout
at 50%;

	 	•	 	Target is defined as meeting 100% of the performance metrics and will payout at
100%; and

	 	•	 	Maximum is defined at meeting or exceeding 120% of the performance metrics and
will payout at 150%.

	 	•	 	Performance metric(s) will be set at the beginning of the three year-periods and will
remain fixed for the three-year measurement period.

LTIP PROVISIONS

	 	•	 	All share grants/cash will be calculated based upon the participant’s base salary at the
time of grant.

	 	•	 	A participant must be employed by the Company on the date the shares/cash are awarded
both time-based and performance-based.

	 	•	 	Time-based shares/cash will vest in equal annual installments (1/3 each year) over a
three-year period based on completion of the service requirement.

	 	•	 	LTIP will be distributed/granted following completion of the Company’s consolidated
annual audit and approval of the payout by the Company’s C&B Committee and approval of the
payout by the Board of Directors for the CEO, on or about April 1.

	 	•	 	Earned shares may be delivered net of taxes.

	 	•	 	Since LTIP grants occur once a year, any employee hired or promoted after the granting
of LTIPs for a specific year would not participate in the program for that year, but would
be eligible in subsequent years.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 8 of 9

	 	•	 	No member of the Board of Directors or the C&B Committee shall be liable for any action
taken or determination made in good faith with respect to the LTIP.

	 	•	 	Receipt of any portion of the LTIP granted in the form of equity is subject to all terms
and conditions described in the 2007 Equity Incentive Policy for Employees and Non-Employee
Directors.

	 	•	 	All LTIP will be granted subject to a separate award agreement that will contain
specific terms and provisions.

	 	•	 	In the event of death, total disability or normal retirement as defined in the award
agreement, shares/cash will be earned as follows:

	 	•	 	Time-based shares will be earned on a pro-rata basis based on the date of the
event and will be paid out as soon as practical to the employee or his/her
estate.

	 	•	 	Performance-based shares will be earned on a pro-rata basis based on the date
of the event and will be paid out at the end of the three-year period, with the
value determined based on the final performance determination.

	 	•	 	Participation in this Policy is neither a contract nor a guarantee of continuing
employment.

	 	•	 	The Company’s CEO has final say on the interpretation of this Policy and procedures,
except where the CEO is directly impacted in which case the C&B Committee has final say on
the interpretation of this Policy.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Annual Incentive Policy (AIP)/Long Term 

Incentive Policy (LTIP) Policy
	 	No.

GP-33
	 	Date Issued:

March 9, 2011
	 	Supersedes

Policy

GP-33 dated

6/01/2010
	 	Page 9 of 9

ADDENDUM

WESTMORELAND COAL COMPANY INCENTIVE POLICYS

FOR NON-UNION EMPLOYEES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	AIP %	 	 	LTIP %	 	 	LTIP	 	 	LTIP	 
	 	 	 	 	 	Tier	 	 	 	 	of	 	 	of	 	 	Performance-	 	 	Time-	 
	Grade	 	 	Level	 	 	Position or Classification	 	Salary	 	 	Salary	 	 	Based	 	 	Based	 
	 	 	 	 	 	I	 	 	CEO
	 	 	100	%	 	 	150	%	 	 	50	%	 	 	50	%
	 	12	 	 	 	I	 	 	Executive VP
	 	 	40	%	 	 	80	%	 	 	50	%	 	 	50	%
	 	12	 	 	 	I	 	 	Chief Financial Officer

SVP, Coal Operations/COO
	 	 	35	%	 	 	70	%	 	 	50	%	 	 	50	%
	 	12	 	 	 	I	 	 	General Counsel

Vice Presidents of a Functional Area
	 	 	30	%	 	 	60	%	 	 	50	%	 	 	50	%
	 	11	 	 	 	II	 	 	Mine Managers
	 	 	30	%	 	 	40	%	 	 	50	%	 	 	50	%
	 	11	 	 	 	III	 	 	Directors of a Functional Area

Assistant General Counsel
	 	 	20	%	 	 	30	%	 	 	50	%	 	 	50	%
	 	9, 10	 	 	 	IV	 	 	Managers I & II 

Engineer III

Ops Controller I & II

 Superintendent II
	 	 	15	%	 	 	NA	 	 	 	NA	 	 	 	NA

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