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    SEPARATION
AGREEMENT AND GENERAL RELEASE OF CLAIMS

    

     

    THIS
SEPARATION AGREEMENT AND GENERAL RELEASE OF CLAIMS (the “Agreement”) is made
and entered into by and between Victory Energy Corporation, a Nevada corporation
(“Company”),
Jon Fullenkamp, an individual (“Fullenkamp”), and Jon
Fullenkamp, as Trustee of the Virgin Family Trust, LLP (“Trust”).

     

    RECITALS

     

    A.           The
Company and Fullenkamp entered into an Employment Agreement dated effective as
of  January 2, 2005 (the “Employment
Agreement”).

     

    B.           Fullenkamp
voluntarily resigned from all positions with the Company, including his position
as its President, Chief Executive Officer, employee and as a member of its Board
of Directors, effective April 28, 2009 (the “Separation
Date”).

     

    C.           Fullenkamp
is owed (i) an aggregate of approximately $1,014,000 as reflected on the books
of the Company as of April 29, 2009 (the “Original Related Party
Debt”), and (ii) an aggregate of approximately $10,000 of unreimbursed
expenses incurred during the first quarter of 2009 (the “Unreimbursed
Expenses”).

     

    D.           The
parties have agreed to (i) reduce the amount of the Original Related Party Debt
to a total of $500,000 (including imputed interest) (the “Revised Related Party
Debt”), (ii) repay the Revised Related Party Debt over time in accordance
with the Payment Schedule set forth in Section 4 below,
(iii) pay to Fullenkamp the amount of the Unreimbursed Expenses, and (iv) issue
to Fullenkamp10,000,000 shares of the Company’s common stock that were issuable
to Fullenkamp under the terms of the Employment Agreement (the “Employment Agreement
Shares”).

     

    E.           The
Company desires to obtain the assistance of Fullenkamp in connection with
certain matters relating to the Company’s ongoing business operations in Texas
and Fullenkamp is willing to provide such assistance, at the Company’s request,
in consideration of the Company’s agreement to accelerate the payment of a
portion of the Revised Related Party Debt in accordance with the provision
contained in Section
5(a).

     

    F.           On
April 18, 2008, the Company purportedly issued 2,000,000 shares of the Company’s
preferred stock (the “Preferred Shares”) to
Fullenkamp in full payment of $200,000 owed by the Company to Fullenkamp (which
amount represented a portion of the total amount owed by the Company to
Fullenkamp at that time).  Recently, the Company has determined that
the Preferred Shares have not been legally created under applicable provisions
of Nevada Law and, as a result, have not been validly issued by the
Company.  As a result, the Company desires to issue to Fullenkamp, and
Fullenkamp desires to accept, 1,000,000 shares (the “Replacement Shares”)
of the Company’s common stock, $0.001 par value per share (the “Common Stock”) in
lieu of the Preferred Shares that were issued by the Company to Fullenkamp in
full consideration of the repayment of $200,000 of the Company’s total
indebtedness to Fullenkamp that existed at the time of the issuance of the
Preferred Shares.

    
      
        
          
            	
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    G.           The
parties desire to terminate the Employment Agreement effective as of the
Separation Date and desire to implement certain restrictions on the ability of
Fullenkamp and the Trust to vote and transfer the Fullenkamp Shares (as defined
below).

     

    NOW,
THEREFORE, in consideration of the mutual promises set forth herein, the
sufficiency of which is hereby acknowledged by each of the parties hereto, the
parties hereby agree as follows:

     

    1.           Effective
Date; Term.  The effective date of this Agreement shall be
seven days after each of Fullenkamp and the Trust executes and delivers the
Agreement to the Company, unless Fullenkamp and/or the Trust otherwise revokes
this Agreement in writing before expiration of such seven-day period (“Effective
Date”).  The provisions of this Agreement shall continue in
full force and effect until the fifth anniversary of the Effective
Date.

     

    2.           Payment
of All Accrued Wages; Termination of Employment
Agreement.  Fullenkamp acknowledges and represents that the
Company has paid Fullenkamp for all wages, bonuses, business expenses (other
than the Unreimbursed Expenses, the amount of which shall by paid to Fullenkamp
in accordance with Section 7) and unused
vacation benefits due and owing to Fullenkamp through the Separation Date, and
that, except as described herein, Fullenkamp is not and shall not be entitled to
any other wages, bonuses, compensation or benefits, whether pursuant to the
Employment Agreement or otherwise, including, without limitation, salary,
bonuses, incentive compensation, stock, stock options, accrued vacation
payments, severance pay, unvested pension benefits, employer-paid health
benefits, fringe benefits, expense reimbursements, or any other employment
benefits.  Fullenkamp and the Company acknowledge and agree that the
Employment Agreement is hereby terminated effective as of the Separation
Date.

     

    3.           Reduction
in the Amount of Original Related Party Debt.  In exchange for
the Company entering into this Agreement and agreeing to the terms hereof
including the terms of the Payment Schedule (defined below), Fullenkamp agrees
to reduce the amount of the Original Related Party Debt to the amount of the
Revised Related Party Debt.

     

    4.           Payment
Schedule.  Subject to the provisions of Section 5(a), the
Company agrees to pay the Revised Related Party Debt to Fullenkamp as follows:
(i) $10,000 on the Effective Date, and (ii) 49 monthly installments of $10,000
on the first day of every calendar month beginning June 1, 2009 (the “Payment
Schedule”).  The parties acknowledge and agree that the
aggregate $500,000 in payments under the Payment Schedule includes $34,374 of
imputed interest relating to the 49 monthly payments of $10,000 calculated at a
rate of 3.52 % per annum.  The parties further acknowledge and agree
that to the extent the Company makes a payment to Fullenkamp pursuant to the
provisions of Section
5(a), the total number of monthly installments shall be appropriately
reduced to take into account the dollar amount paid as a result of the
provisions of Section
5(a).

     

    5.           Cooperation
and Assistance.

     

    (a)           In
the Company’s sole discretion, the Company may request that Fullenkamp provide
certain services to the Company, including, but not limited to,

    
      
        
          
            	
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    assisting
the Company with its on-going drilling operations in Texas.  If the
Company requests Fullenkamp to provide such services and if, in the Company’s
sole discretion, the Company determines that Fullenkamp’s services and
assistance have had a significantly favorable impact on the Company, the Company
may, in its sole discretion and solely in consideration of such services,
accelerate up to ten payments (i.e., up to $100,000), due to Fullenkamp pursuant
to the Payment Schedule.  If such acceleration payment is made, the
Company will continue to make monthly payments in accordance with the Payment
Schedule commencing on the first day of the month after the date of the
acceleration payment, with the total number of such payments appropriately
reduced to take into account the acceleration payment.

     

    (b)           Fullenkamp
shall cooperate and provide reasonable assistance to the Company (including its
agents, owners, employees and attorneys), as requested by the Company, (i) to
affect a smooth and orderly transition and continuation of the business of the
Company, (ii) in the preparation and/or defense and/or pursuit of any litigation
involving the Company, and (iii) in connection with any issues related to
Fullenkamp’s employment with the Company, Fullenkamp’s performance as an
employee of the Company, or any related matters, except as may be prevented by
law.

     

    (c)           Fullenkamp
shall not (i) voluntarily aid, assist, cooperate with or encourage any person in
connection with the pursuit of any claim or dispute against the Company, unless
compelled by deposition or other proper legal process, or (ii) voluntarily
involve himself or participate in any action in which the Company or any of the
other Releasees (as defined below) is a party without first obtaining the
Company’s advance written consent or unless requested to do so by the Company
pursuant to Section
5(b) above.

     

    (d)           Fullenkamp
shall provide advance written notice to the Company in the event he is
subpoenaed to testify, or provide documents at deposition or at trial, relating
to (i) any actual, possible, alleged or perceived violation by the Company or
any other Releasee (as defined below) of any federal, state, local, or
administrative law, rule, or regulation; (ii) the negotiations relating to, and
the terms of, this Agreement; and (iii) any acts or omissions by the Company or
any of the other Releasees (as defined below) occurring prior to the Effective
Date of this Agreement.

     

    (e)           Nothing
in Sections 5(c) and
(d) is intended to (i) preclude Fullenkamp from assisting the Company in
the manner described above, (ii) interfere with any protected right to file
charges, testify, assist or participate in any manner in an EEOC investigation,
hearing or proceeding, or (iii) influence the substance of such aid or
involvement which is properly compelled by legal process.

     

    (f)           Fullenkamp
shall be reimbursed for expenses he incurs on behalf of the Company provided
that he shall not be authorized to incur on behalf of the Company any expenses
in excess of $1,500 without the prior consent of the Company’s Chief Financial
Officer, which
consent shall be evidenced in writing for any expenses in excess of
$1,500.  As a condition to receipt of reimbursement, Fullenkamp shall
be required to

    
      
        
          
            	
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    submit to
the Company reasonable evidence that the amount involved was expended and
related to services provided under this Agreement.

     

    6.           Issuance
of Replacement Shares.  On the Effective Date, the Company will
issue to Fullenkamp the Replacement Shares in lieu of the Preferred Shares and
in full consideration of the repayment of $200,000 of the Company’s indebtedness
to Fullenkamp that existed at the time of the issuance of the Preferred
Shares.

     

    7.           Payment
of Unreimbursed Expenses.  On the Effective Date, the Company
will pay to Fullenkamp by check the amount of the Unreimbursed Expenses to the
extent Fullenkamp provides the Company with receipts evidencing the payment of
such amounts by Fullenkamp.

     

    8.           Voting
Agreement.

     

    (a)           Each
of Fullenkamp and the Trust hereby irrevocably grants to, and appoints Ronald
Zamber, and any other individual who shall hereafter be designated by Fullenkamp
and agreed to by the Company, as Fullenkamp’s and the Trust’s proxy and
attorney-in-fact (with full power of substitution), for and in the name, place
and stead of Fullenkamp and the Trust, to vote the Fullenkamp Shares, or grant a
consent or approval in respect of the Fullenkamp Shares, at any meeting of
shareholders of the Company or at any adjournment thereof or in any other
circumstances upon which their vote, consent or other approval is sought in
favor of any matter brought before the Company’s shareholders.

     

    (b)           Each
of Fullenkamp and the Trust represents and warrants that any prior proxies
heretofore given in respect of any portion of the Fullenkamp Shares are not
irrevocable, and that any such prior proxies are hereby revoked.

     

    (c)           Each of Fullenkamp and the Trust
hereby affirms that the proxy set forth in this Section
8 is coupled with an
interest and is irrevocable until such time as this Agreement terminates in
accordance with its terms.  Each of Fullenkamp and the Trust
hereby further affirms that the irrevocable proxy is given in connection with
the execution of this Agreement, and that such irrevocable proxy is given in
consideration of the terms of this Agreement.  Each of Fullenkamp and
the Trust hereby ratifies and confirms all that such irrevocable proxy may
lawfully do or cause to be done by virtue hereof.  Such irrevocable
proxy is executed and intended to be irrevocable in accordance with the
provisions of Section 78.355(5) of the Nevada Revised Statutes.

     

    (d)           During
the term of this Agreement, neither Fullenkamp nor the Trust shall Transfer any
portion of the Fullenkamp Shares unless the person receiving Transfer of such
Fullenkamp Shares executes an Instrument of Accession in the form attached
hereto as Exhibit
A agreeing to be bound by the terms of this Agreement.  As used
herein, “Transfer” shall mean
and include any sale (other than a sale made in a brokers’ transaction, as that
term is defined in Rule 144(g) under the Securities Act of 1933, as amended
(the “Securities
Act”)), assignment, encumbrance, hypothecation, pledge, conveyance in
trust, gift, transfer by request, devise or descent, or other transfer or
disposition of any kind, including, but not limited to, transfers in connection
with a

    
      
        
          
            	
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    marital
separation or dissolution, transfers to receivers, levying creditors, trustees
or receivers in bankruptcy proceedings or general assignees for the benefit of
creditors, whether voluntary or by operation of law, directly or indirectly, of
any of the Fullenkamp Shares.

     

    (e)           Each
of Fullenkamp and the Trust will, from time to time, execute and deliver, or
cause to be executed and delivered, such additional or further transfers,
assignments, endorsements, consents and other instruments as the Company may
reasonably request for the purpose of effectively carrying out the transactions
contemplated by this Agreement and to vest the power to vote the Fullenkamp
Shares as contemplated by this Section
8.

     

    9.           Lock-up
Agreement.  In connection with the issuance of the Employment
Agreement Shares to Fullenkamp pursuant to the terms of this Agreement,
Fullenkamp agrees that until the fifth anniversary of the Effective Date,
Fullenkamp will not, directly or indirectly, through an “affiliate,” “associate”
(as such terms are defined in the rules and regulations promulgated under the
Securities Act), a family member or otherwise offer, pledge, hypothecate, sell,
contract to sell, or otherwise dispose of, or transfer any of the Employment
Agreement Shares; provided, however, that
Fullenkamp may sell, transfer, pledge, hypothecate or otherwise dispose
(provided such sale, transfer, pledge, hypothecation or disposition is made in
compliance with all applicable state and Federal securities laws), on a monthly
basis, of up to that number of Employment Agreement Shares which is equal to 15%
of the total number of shares of the Company’s common stock that were traded on
the principal trading market upon which shares of the Company’s common stock
then trades during the preceding month.

     

    10.           Representations
and Warranties of Fullenkamp and the Trust.  Each of Fullenkamp
and the Trust represents and warrants to the Company as follows:

     

    (a)           Each
of Fullenkamp and the Trust has all requisite power and authority to execute and
deliver this Agreement and to consummate the transactions contemplated
hereby.  The execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby have been duly
authorized by Fullenkamp and the Trust.  This Agreement has been duly
executed and delivered by Fullenkamp and the Trust and creates valid and binding
obligations enforceable against Fullenkamp and the Trust in accordance with its
terms.  Neither the execution, delivery or performance of this
Agreement by Fullenkamp and the Trust nor the consummation by Fullenkamp and the
Trust of the transactions contemplated hereby will (i) require any filing with,
or permit, authorization, consent or approval of, any federal, state, local or
municipal foreign or other government or subdivision, branch, department or
agency thereof or any governmental or quasi-governmental authority of any
nature, including any court or other tribunals, (ii) result in a violation
or breach of, or constitute (with or without due notice or lapse of time or
both) a default under, or give rise to any right of termination, amendment,
cancellation or acceleration under, or result in the creation of any pledge,
claim, lien, option, charge, encumbrance or security interest of any kind or
nature whatsoever (a “Lien”) upon any of
Fullenkamp’s or the Trust’s properties or assets under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, lease, license,
permit, concession, franchise, contract, agreement or other instrument
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    obligation
to which he or it is a party or by which he or it or any of his or its
properties or assets, including the Fullenkamp Shares, may be bound or (iii)
violate any judgment, order, writ, preliminary or permanent injunction or decree
or any statute, law, ordinance, rule or regulation of any Governmental Entity
applicable to Fullenkamp or the Trust or any of the properties or assets of
Fullenkamp or the Trust, including the Fullenkamp Shares;

     

    (b)           Fullenkamp
and the Trust are the record and beneficial owners, or the trustee of a trust
(including the Trust) whose beneficiaries are the beneficial owners, of such
number of shares of the Company’s Common Stock set forth on Schedule I hereto
(such shares of Common Stock, as such shares may be adjusted by stock dividend,
stock split, recapitalization, combination or exchange of shares, merger,
consolidation, reorganization or other change or transaction, together with
shares of Common Stock that may be acquired after the date hereof by him,
including shares of Common Stock issued upon the exercise of options or warrants
to purchase Common Stock (as the same may be adjusted as aforesaid), being
collectively referred to herein as the “Fullenkamp
Shares”);

     

    (c)           Subject
to the terms of this Agreement, the Fullenkamp Shares and the certificates
representing the Fullenkamp Shares are now, and at all times during the term
hereof will be, held by Fullenkamp or the Trust, as the case may be, or by a
nominee or custodian for his or its benefit.  Each of Fullenkamp and
the Trust has good and marketable title to such portion of the Fullenkamp Shares
owned by such person or entity, free and clear of any Liens, proxies, voting
trusts or agreements, understandings or arrangements.  Neither
Fullenkamp nor the Trust owns of record or beneficially any Common Stock or
other voting interest in the Company other than the Fullenkamp Shares and shares
of Common Stock issuable upon the exercise of options and warrants, in each case
as set forth on Schedule I
hereto;

     

    (d)           Other
than for whatever is specifically referenced or provided for in this Agreement,
there are no other sums or benefits of any nature whatsoever due and owing to
Fullenkamp or the Trust by the Company;

     

    (e)           Other
than for whatever is specifically provided for in this Agreement, there are no
rights of any nature whatsoever due and owing to Fullenkamp or the Trust by the
Company;

     

    (f)           Fullenkamp
has provided to the Company a disk containing a true and correct copy of all
files contained on his personal laptop computer in his possession and used for
business purposes relating to information and/or documents pertaining to the
business of the Company through the close of business on the Separation
Date;

     

    (g)           Neither
Fullenkamp nor the Trust has, at anytime, taken possession of or claimed a right
to any monies or other property of the Company that Fullenkamp or the Trust was
not legally or contractually entitled to receive;

     

    (h)           Fullenkamp
will cooperate fully with the investigation being conducted by a committee of
the Board of Directors of the Company relating to matters presented
to

    
      
        
          
            	
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    the Board
of Directors by the Company’s Chief Financial Officer at a meeting of the Board
of Directors on April 28, 2009; and

     

    (i)           Fullenkamp
has no interest to any of the Preferred Shares, and has been fully and fairly
compensated for the $200,000 owed by the Company to him on the date of issuance
of the Preferred Shares by virtue of the issuance of the Replacement
Shares.

     

    11.           Company
Property.  Fullenkamp has returned to the Company and has not
copied or duplicated in any manner whatsoever, all tangible and intangible
property (including, without limitation, all computer hardware, whether portable
or stationary, and software), books, records, documents and reports owned by, or
pertaining to the business of, the Company or any of the Company’s existing or
prospective customers that was in Fullenkamp’s possession or under Fullenkamp’s
direct or indirect control as of the Separation Date.  If Fullenkamp
shall come into possession of any property (tangible or intangible), books,
records, documents or reports of the type described above after the Separation
Date, Fullenkamp will promptly return them to the Company.

     

    12.           Failure
to Make Payments Pursuant to Payment Schedule; Remedies.  If
the Company fails to make any payment pursuant to the Payment Schedule
(including any acceleration payment contemplated under Section 5(a)), and
such failure continues for a period of 30 days after the date on which such
failure first occurs, Fullenkamp shall have the right to declare all amounts due
and owing pursuant to the Payment Schedule (including any acceleration payments
under Section
5(a)) which have not otherwise been paid by the Company to Fullenkamp,
immediately due and payable.

     

    13.           Release.  Subject
to the continuing rights and obligations created by or acknowledged in this
Agreement, Fullenkamp, for the Trust, himself and his heirs, assigns, executors,
administrators, agents and successors, past and present (collectively, the
“Fullenkamp
Affiliates”), hereby fully and without limitation releases, covenants not
to sue, and forever discharges the Company, its subsidiaries, parent companies,
divisions, affiliated corporations, affiliated partnerships, trustees,
directors, officers, shareholders, partners, agents, employees, consultants,
insurance carriers, attorneys, assigns, executors and administrators, trustees,
predecessors and successors, past and present (collectively with the Company,
the “Releasees”), both
individually and collectively, to the fullest extent permitted by law, from any
and all rights, claims, demands, liabilities, actions and causes of action
whether in law or in equity, suits, damages, losses, attorneys’ fees, costs, and
expenses, of whatever nature whatsoever, known or unknown, fixed or contingent,
suspected or unsuspected (collectively, the “Claims”), that
Fullenkamp or the Fullenkamp Affiliates now have, or may ever have, against any
of the Releasees based upon or arising out of any acts or omissions by the
Company or any of the other Releasees, or any other facts or matters, occurring
or existing on or prior to the Effective Date of this Agreement.

     

    Without
limiting the generality of the foregoing, Fullenkamp understands and agrees
that, except as otherwise prohibited by law, the Release provisions of this
Section 13
apply to any Claims that Fullenkamp or the Fullenkamp Affiliates now have, or
may ever have, against the Company or any of the other Releasees occurring prior
to the Effective Date that arise out of or

    
      
        
          
            	
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    are in
any manner related to:  (i) Fullenkamp’s employment by the Company or
any of the other Releasees, and (ii) the termination of Fullenkamp’s employment
with the Company.

     

    Without
limiting the generality of the foregoing, Fullenkamp specifically and expressly
releases, to the fullest extent permitted by law, any Claims against the Company
and the other Releasees occurring prior to the Effective Date of this Agreement
arising out of or related to violations of any federal or state employment
discrimination laws, including the California Fair Employment and Housing Act;
the Age Discrimination In Employment Act; Title VII of the Civil Rights Act of
1964; the Americans With Disabilities Act; the National Labor Relations Act; the
Equal Pay Act; the Employee Retirement Income Security Act of 1974; as well as
Claims arising out of or related to violations of the provisions of the
California Labor Code; the California Government Code; the California Business
& Professions Code, including Business & Professions Code Section 17200
et seq.; state and federal wage and hour laws, including the federal Fair Labor
Standards Act; breach of contract; fraud; misrepresentation; common counts;
unfair competition; unfair business practices; negligence; defamation;
infliction of emotional distress; invasion of privacy; assault; battery; false
imprisonment; wrongful termination; and any other state or federal law, rule, or
regulation.

     

    Fullenkamp
acknowledges and represents that Fullenkamp did not suffer any work-related
injuries while employed by the Company, that Fullenkamp has no intention of
filing any claims for workers’ compensation benefits of any type against the
Company, and that Fullenkamp will not file or attempt to file any claims for
workers’ compensation benefits of any type against the
Company.  Fullenkamp acknowledges that the Company has relied upon
these representations, and that the Company would not have entered into this
Agreement but for these representations.  As a result, Fullenkamp
agrees, covenants, and represents that the Company may, but is not obligated to,
submit this Agreement to the Workers’ Compensation Appeals Board for approval as
a compromise and release as to any workers’ compensation claims that Fullenkamp
files.

     

    14.           All
Disputes.  Each of Fullenkamp and the Trust acknowledges that
Fullenkamp and the Trust is aware of and familiar with the provisions of Section
1542 of the California Civil Code, which provides as follows:

     

    “A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which
if known by him or her, must have materially affected his or her settlement with
the debtor.”

     

    Each of
Fullenkamp and the Trust hereby waives and relinquishes all rights and benefits
that Fullenkamp or the Trust has or may have under Section 1542 of the
California Civil Code, or the law of any other country, territory, state or
jurisdiction, or common law principle, to the same or similar
effect.

     

    15.           Older
Worker’s Benefit Protection Act.  This Agreement is subject to
the terms of the Older Workers Benefit Protection Act of 1990 (the “OWBPA”).  The
OWBPA provides that an individual cannot waive a right or claim under the Age
Discrimination in Employment Act (“ADEA”) unless the
waiver is knowing and voluntary.  Pursuant to the terms of
the

    
      
        
          
            	
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    OWBPA,
Fullenkamp acknowledges and agrees that Fullenkamp has executed this Agreement
voluntarily, and with full knowledge of its consequences.

     

    In
addition, Fullenkamp hereby acknowledges and agrees that: (a) this Agreement has
been written in a manner that is calculated to be understood, and is understood,
by Fullenkamp; (b) the release provisions of this Agreement apply to rights and
claims that Fullenkamp may have under the ADEA, including the right to file a
lawsuit against the Company for age discrimination; (c) the release provisions
of this Agreement do not apply to any rights or claims that Fullenkamp may have
under the ADEA that arise after the date Fullenkamp executes this Agreement; (d)
the Company does not have a preexisting duty to pay the Separation Amount
identified in this Agreement; (e) Fullenkamp has been advised in writing to
consult with an attorney prior to executing this Agreement; (f) Fullenkamp shall
have a period of 21 days in which to consider the terms of this Agreement prior
to its execution; and (g) Fullenkamp shall have a period of seven days after
execution of this Agreement in which to revoke this
Agreement.  Fullenkamp further understands that this Agreement shall
not become effective until expiration of this seven-day period.

     

    16.           Trade
Secrets.  Fullenkamp
acknowledges that, in the course of Fullenkamp’s employment with the Company,
Fullenkamp had access to confidential information, including information,
processes, and/or ideas that are not generally known in the industry; that the
Company considers confidential; that give the Company a competitive advantage;
and/or that affect or relate to the Company, its business, or its methods of
operation.  Fullenkamp acknowledges that such confidential information
is a valuable trade secret and the sole property of the Company.

     

    Fullenkamp
acknowledges and agrees that the Company’s Confidential Information and trade
secrets include, for example, computer program listing, source code, and object
code; product design, contents, formulas, packaging, marketing, or anything
related to the unique character of products; the names and addresses of the
Company’s customers and prospective customers and all other confidential
information relating to those actual or prospective customers, marketing
information, price lists, cost information, business forms, and financial
records; as well as all other information that has or could have commercial
value or other utility in the business in which the Company or its customers are
engaged or in which they contemplate engaging and information, regardless of
whether the Company previously identified or labeled such information as
confidential.  By way of further example, the Company’s confidential
information and trade secrets include all information not generally known
outside of the Company that relates to the Company or its customers and that
Fullenkamp obtained or learned about solely as a result of Fullenkamp performing
services for the Company.

     

    If
Fullenkamp is not sure whether certain information is confidential information
within the scope of this Agreement, then Fullenkamp agrees to treat that
information as confidential unless informed in writing by the Company to the
contrary.

     

    Accordingly,
except as required by law, legal process, or in connection with any litigation
between the parties hereto with respect to matters arising out this Agreement,
Fullenkamp agrees that Fullenkamp will not disclose or furnish any such
information to any person other than an

    
      
        
          
            	
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    officer
of the Company, and Fullenkamp will make no use of any such information for
Fullenkamp’s personal benefit.

     

    Fullenkamp
further represents and warrants that prior to or concurrently with the execution
of this Agreement, Fullenkamp has returned to the Company all such information
and property which belongs to the Company.  This includes all
information tangible or intangible whether in written, machine-readable, or any
information disclosed orally or visually.

     

    Fullenkamp
agrees and acknowledges that Fullenkamp has not, by virtue of Fullenkamp’s
association with the Company, acquired any rights in any confidential
information, goodwill, or other asset or property of the Company, whether
tangible or intangible, and whether or not created by Fullenkamp.  If
any such rights become vested in Fullenkamp by operation of law or otherwise,
Fullenkamp agrees to assign the same to the Company without further
consideration immediately upon the Company’s request.

     

    17.           Fullenkamp
Non-Solicitation.  Fullenkamp agrees that, during the time
period in which the Company is making payments pursuant to the Payment Schedule,
he will not directly or indirectly recruit, or attempt to recruit, any other
employee of the Company or its affiliates, or induce or attempt to induce any
employee of the Company to terminate or cease employment with the
Company.  During this period, if Fullenkamp is contacted by the
Company’s employee(s) with regard to employment opportunities, Fullenkamp agrees
to inform such employee(s) at the first discussion thereof that he cannot
encourage, follow-up on, hire or promote the hiring of such employee(s) unless
consent is provided to Fullenkamp by the Company’s owners to continue such
discussions.

     

    18.           No Other
Claims and No Assignment.  Fullenkamp represents and warrants
that Fullenkamp has not filed any Claims for benefits against the Company or any
of the Releasees with any state or federal court or local, state or federal
agency.  Fullenkamp also represents and warrants that Fullenkamp has
not assigned or transferred any interest in any Claims that Fullenkamp may have
against the Company or any other Releasee.  Accordingly, Fullenkamp
agrees to indemnify and hold the Company and the other Releasees harmless from
any liability, claims, demands, damages, expenses, and attorneys’ fees incurred
as a result of any person or entity asserting any such Claims, assignment or
transfer of any right or claim.  This Agreement may be pleaded as a
defense, cross-complaint, counter-suit, cross-claim, or third party complaint in
any action involving the Company or any of the other Releasees.  This
indemnity provision does not require payment as a condition precedent to
recovery by the Releasees hereunder.

     

    19.           Remedies.  If
any of the representations of a party contained in this Agreement are discovered
to be untrue, or any of the obligations of a party in this Agreement are
breached, the party whose representation is untrue, or who has breached an
obligation, shall (a) be liable for any and all damages caused by such
misrepresentation or breach, (b) take all actions necessary to insure that the
other party to this Agreement (the “Other Party”) is not
damaged by reason of such misrepresentation or breach, and (c) indemnify and
hold the Other Party harmless from damages, losses, claims, or expenses
resulting therefrom (including, without limitation, attorneys’
fees).  If any of the representations of a party contained in this
Agreement are discovered to be untrue, or any of the obligations of a party in
this Agreement are breached, the Other Party shall be entitled to recover
damages and to pursue all other remedies available under

    
      
        
          
            	
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    contract
or law by reason of any such untrue or inaccurate representations or the breach
of any warranty, covenant or other obligation under this Agreement.

     

    20.           Choice of
Law, Jurisdiction and Venue.  This Agreement is made and
entered into in the State of California and shall in all respects be interpreted
and enforced pursuant to the laws of the State of California, without regard to
or application of any of California’s conflict of laws rules.  Any
dispute arising out of or related to this Agreement shall be litigated
exclusively in the state or federal courts located in Orange County,
California.  The Parties expressly consent to personal jurisdiction
and venue in the state and federal courts located in Orange County,
California.

     

    21.           Integrated
Agreement.  This Agreement constitutes a single, integrated
written contract expressing the entire agreement of the
parties.  There is no other agreement, written or oral, express or
implied, between the parties with respect to the subject matter hereof, except
this Agreement.  This Agreement may not be orally modified, and may be
modified only in a written instrument signed by the parties.

     

    22.           Severability.  The
parties to this Agreement agree, covenant and represent that each and every
provision of this Agreement shall be deemed to be contractual, and that they
shall not be treated as mere recitals at any time or for any
purpose.  Therefore, the parties further agree, covenant and represent
that each and every provision of this Agreement shall be considered
severable.  If a court of competent jurisdiction finds any provision,
or part thereof, to be invalid or unenforceable for any reason, that provision,
or part thereof, shall remain in force and effect to the extent allowed by law,
and all of the remaining provisions of this Agreement shall remain in full force
and effect and enforceable.

     

    23.           Captions.  The
captions and section numbers in this Agreement are inserted for the reader’s
convenience, and in no way define, limit, construe, or describe the scope or
intent of the provisions of this Agreement.

     

    24.           Counterparts.  This
Agreement may be executed in counterparts, and when each party has signed and
delivered at least one such counterpart, each counterpart shall be deemed an
original, and, when taken together with other signed counterparts, shall
constitute one agreement, which shall be binding upon and effective as to all
parties.

     

    25.           Binding
Agreement.  Fullenkamp represents and warrants that Fullenkamp
has the authority to enter into this Agreement on Fullenkamp’s behalf
individually and to bind all persons and entities claiming through Fullenkamp,
including the Trust.  This Agreement shall be binding upon and shall
inure to the benefit of the respective heirs, assigns, executors,
administrators, successors, subsidiaries, divisions and affiliated corporations
and partnerships, past and present, and trustees, directors, officers,
shareholders, partners, agents and employees, past and present, of Fullenkamp
and the Company.

     

    THE
UNDERSIGNED HAVE READ THE FOREGOING AGREEMENT AND ACCEPT AND AGREE TO THE
PROVISIONS CONTAINED THEREIN, AND HEREBY EXECUTE IT, KNOWINGLY AND VOLUNTARILY,
AND WITH FULL UNDERSTANDING OF ITS CONSEQUENCES.

    
      
        
          
            	
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    FULLENKAMP
FURTHER ACKNOWLEDGES AND UNDERSTANDS THAT FULLENKAMP HAS BEEN GIVEN 21 DAYS IN
WHICH TO CONSIDER THE TERMS OF THIS AGREEMENT, AND THAT FULLENKAMP HAS
VOLUNTARILY CHOSEN TO EXECUTE THIS AGREEMENT ON THE DATE INDICATED
BELOW.

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates
indicated below.

     

    

    
      
        	 	 	 
	 	 	 	 
	
                
                  Dated:  May
      15, 2009

                

              	
                By:
      

              	/s/ 	 
	 	 	JOHN
      FULLENKAMP	 
	 	 	 	 
	 	 	 	 

      

    

     

    
      
        	 	
                VICTORY
      ENERGY CORPORATION

              	 
	 	 	 	 
	
                
                  Dated:  May
      15, 2009

                

              	
                By:
      

              	/s/ 	 
	 	 	Robert
      Miranda	 
	 	 	
                Interim
      Chief Executive Officer

              	 
	 	 	 	 

      

    

     

    
      
        	 	
                JON
      FULLENKAMP, AS TRUSTEE OF THE VIRGIN FAMILY TRUST, LLP

              	 
	 	 	 	 
	
                Date:  May
      15, 2009

              	
                By:
      

              	/s/ 	 
	 	 	
                John
      Fullenkamp, Trustee

              	 
	 	 	 	 
	 	 	 	 

      

     

     

    

     

     

     

    
      
        
          
            	
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    SCHEDULE
I

    

    Share
Ownership

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 	 Name	
                                               

                                            	 Number
      of Shares    	 	
                                               

                                            
	 	
                                               

                                              Jon
      Fullenkamp

                                            	
                                               

                                               9,097,500

                                            
	 	
                                               

                                              Virgin
      Family Trust, LLP

                                            	
                                               

                                               6,103,250

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    Option and Warrant
Ownership

     

    
      
        
          	 	 Name	
                   

                	 Number
      of Options/Warrants   	 	
                   

                
	 	
                   

                  Jon
      Fullenkamp

                	
                   

                  1,200,000
      options

                
	 	
                   

                   

                	
                   

                   

                

        

      

     

    

    
      
        
          
            	
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    EXHIBIT
A

     

    Form of Instrument of
Accession

     

    

     

    Instrument of
Accession

    

     

    Reference
is made to Section 7 of that certain Separation Agreement and General
Release of Claims dated as of May 15, 2009, a copy of which is attached
hereto (as amended and in effect from time to time, the “Separation
Agreement”), between Victory Energy Corporation, a Nevada corporation
(the “Company”), Jon
Fullenkamp, an individual (“Fullenkamp”) and Jon
Fullenkamp as Trustee of the Virgin Family Trust, LLP (the “Trust”).

     

    The
undersigned, ____________________________________, in order to become the owner
or holder of _______________ (collectively, the “Shares”) of the
Company hereby agrees that by his, her or its execution hereof the undersigned
is a party to the Separation Agreement with respect to Section 8 thereof,
subject to all of the restrictions and conditions applicable to Fullenkamp and
the Trust set forth in such Section 8 of the Separation Agreement, and all
of the Shares purchased by the undersigned in connection herewith (and any and
all debt and equity of the Company issued in respect hereof) are subject to all
the restrictions and conditions applicable to such Shares as set forth in
Section 8 of the Separation Agreement.  This Instrument of
Accession shall take effect and shall become a part of Section 8 of the
Separation Agreement immediately upon execution.

     

    
      
        
          	 
      	
                  Executed
      as of the date set forth below under the laws of the State of
      Nevada.

                
	 
      	
                   

                  Signature

                	 
      	 
      
	 
      	
                   

                  Address

                	 
      	 
      
	 
      	
                   

                   

                	 
      	 
      
	 
      	
                   

                   
      

                	 
      	 
      
	 
      	
                   

                  Date

                	 
      	 
      

        

      

    

     

     

     

    
 

    
      
        
          
            	
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    CONSENT
OF SPOUSE

    

     

    I,
Candice Fullenkamp, acknowledge that I have read the foregoing Separation
Agreement and General Release (the “Agreement”) and that
I understand its contents. I am aware that pursuant to the terms of Section 8 of
the Agreement, my spouse agrees (i) to grant to Ronald Zamber, and any other
individual who shall hereafter be designated by my spouse and agreed to by the
Company, an irrevocable proxy to vote the Fullenkamp Shares (as that term is
defined in the Agreement) and (ii) not to Transfer (as that term is defined in
the Agreement) the Fullenkamp Shares, including a Transfer of all or a portion
of the Fullenkamp Shares to me upon his death or upon our divorce or legal
separation, unless the transferee executes an Instrument of Accession whereby
the transferee agrees to be bound by the provisions of Section 8 of the
Agreement.  I am also aware that pursuant to Section 9 of the
Agreement, my spouse agrees to certain restrictions on his ability to sell the
Employment Agreement Shares (as that term is defined in the
Agreement).

     

    Being
fully convinced of the reasonableness and wisdom of the Agreement, including the
provisions contained in Sections 8 and 9 of the Agreement, I hereby approve and
consent to it and hereby agree to be bound by its provisions.

     

    Dated:  May 15,
2009

    
      
        
          
            	 	 /s/
      
	 	
                    Candice
      Fullenkamp

                  

          

        

      

    

     

    
 

    
      
        
          
            	
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                    15exhibit101.htm

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    

    

    

    MASSEY
ENERGY COMPANY

     

    2006
STOCK AND INCENTIVE COMPENSATION PLAN

     

    (As
Amended and Restated Effective May 19, 2009)

     

    

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
          1821571.2

        

         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
I

    Establishment,
Purpose and Duration

    

    1.1           Establishment of the
Plan.  Massey Energy Company (hereinafter referred to as the
“Company”), a Delaware corporation, hereby establishes a stock and incentive
compensation plan to be known as the “2006 Stock and Incentive Compensation
Plan” (hereinafter referred to as the “Plan”), as set forth in this document.
Unless otherwise defined herein, all capitalized terms shall have the meanings
set forth in Section 2.1 herein. The Plan permits, subject to the limitations
herein, the grant of Incentive Stock Options, Non-Qualified Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Units, Unrestricted Stock,
and/or Incentive Awards to Members and Non-Employee Service Providers and
Non-Qualified Stock Options, Restricted Stock and Restricted Units to
Non-Employee Directors.

    

    The Plan was adopted by the Board of
Directors of the Company on February 21, 2006, to become effective (the
“Effective Date”) as of May 16, 2006 once approved by the Company’s
shareholders at the May 16, 2006 annual meeting in accordance with
applicable laws and applicable rules of the New York Stock Exchange. Awards may
not be granted under the Plan prior to shareholder approval of the Plan. The
Plan actually became effective once the results of the shareholder meeting were
finally certified by the independent inspectors of election on June 28, 2006 and
was subsequently amended effective August 15, 2006 to place further limitation
on awards that did not require shareholder approval.

    

    The Plan
was further amended effective November 14, 2006 in order (1) to revise
the definition of “Fair Market Value” as used in connection with valuing Stock
under the Plan for awards made on or after November 14, 2006 and
(2) to provide for mandatory equitable adjustments in awards outstanding
under the Plan as a result of a reorganization, merger, consolidation,
recapitalization, restructuring, reclassification, dividend (other than a
regular, quarterly cash dividend) or other distribution, stock split, reverse
stock split, spin-off or the like, or if substantially all of the property and
assets of the Company are sold.

    

    The plan was further amended effective
January 1, 2009 to add provisions to comply with Section 409A of the
Code.

    

    1.2           Purpose of the
Plan.  The purpose of the Plan is to promote the success of the
Company and its Subsidiaries by providing incentives to Members, Non-Employee
Service Providers and/or Non-Employee Directors that will promote the
identification of their personal interest with the long term financial success
of the Company and with growth in shareholder value. The Plan is designed to
provide flexibility to the Company in its ability to motivate, attract, and
retain the services of Members, Non-Employee Service Providers and/or
Non-Employee Directors upon whose judgment, interest, and special effort the
successful conduct of its operation is largely dependent.

    

    1.3           Duration of the
Plan.  The Plan shall commence on the Effective Date, as
described in Section 1.1 herein, and shall remain in effect, subject to the
right of the Board of Directors to terminate the Plan at any time pursuant to
Article XIV herein, until May 15, 2016, at

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    which
time the Plan shall terminate except with respect to Awards made prior to and
outstanding on that date which shall remain valid in accordance with their
terms.

    

    ARTICLE
II

    Definitions

    

    2.1           Definitions.  Except
as otherwise defined in the Plan, the following terms shall have the meanings
set forth below:

    

    (a)           “Agreement”
means a written agreement implementing the grant of each Award signed by an
authorized officer of the Company or member of the Committee and by the
Participant.

    

    (b)           “Award”
or “Grant” means, individually or collectively, a grant under the Plan of
Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Units, Unrestricted Stock and/or Incentive
Awards.

    

    (c)           “Award
Date” or “Grant Date” means the date on which an Award is made by the Committee
under the Plan.

    

    (d)           “Board”
or “Board of Directors” means the Board of Directors of the
Company.

    

    (e)           “Change
in Control” means, the occurrence of either of the following events (i) a third
person, including a “group” as defined in Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended, acquires (or has acquired during the twelve
(12)-month period ending on the date of the most recent acquisition by such
person) shares of the Company having thirty (30) percent or more of the total
number of votes that may be cast for the election of directors of the Company;
or (ii) as the result of any cash tender or exchange offer, merger or other
business combination, or any combination of the foregoing transactions (a
“Transaction”), the persons who were directors of the Company before the
Transaction shall cease to constitute a majority of the Board of the Company or
any successor to the Company and be replaced by persons whose appointment or
election is not endorsed by the majority of directors before the
Transaction.

    

    To the extent that a Participant must consent to the
change of this definition, the change will not be effective unless such consent
is obtained.  To the extent that a Participant’s consent has not been
obtained, the definition in effect immediately prior to this amendment shall be
controlling with regard to such Participant.

    

    (f)           “Code”
means the Internal Revenue Code of 1986, as amended from time to
time.

    

    (g)           “Committee”
means the committee or committees of the Board appointed to administer the Plan
pursuant to Article III herein. With respect to Awards granted pursuant to the
Plan to Members and Non-Employee Service Providers, all of the members of the
Committee shall be “non-employee directors” as defined in Rule 16b-3, as
amended, under the Exchange Act, or any similar or successor rule, and “outside
directors” within the meaning of Section

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    162(m)(4)(C)(i)
of the Code. Unless otherwise determined by the Board, the Compensation
Committee of the Board, or any successor committee responsible for executive
compensation, shall constitute the Committee with respect to Awards to Members,
Non-Employee Service Providers, and Non-Employee Directors.

    

    (h)           “Company”
means Massey Energy Company, a Delaware corporation, or any successor thereto as
provided in Article XVI herein.

    

    (i)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to
time.

    

    (j)           “Fair
Market Value” of a Share for purposes of this Plan means as of any
date,  the closing market price (that is, the price at which Shares
were last sold in the regular way on the New York Stock Exchange) of the Stock
on the relevant date if it is a trading date or, if no Shares so traded on the
New York Stock Exchange on the date in question, then for the next preceding
date for which Shares so traded on the New York Stock Exchange or if, in the
opinion of the Committee, this method is inapplicable or inappropriate for any
reason, the fair market value as determined pursuant to a reasonable method
adopted by the Committee in good faith for such purpose.

    

    (k)           “Incentive
Award” means an Award, designated as an Incentive Award, which is a bonus
opportunity awarded under Article XI herein pursuant to which a Participant may
become entitled to receive an amount (which may be payable in cash, Shares or
other property) based on satisfaction of such performance criteria as are
specified in the Agreement evidencing the Award.

    

    (l)           “Incentive
Stock Option” or “ISO” means an option to purchase Stock, granted under Article
VI herein, which is designated as an incentive stock option and meets the
requirements of Section 422 of the Code.

    

    (m)           “Member”
means a current or prospective member employed as a common law employee of the
Company or any Subsidiary (including any corporation, partnership, limited
liability company or joint venture which becomes a Subsidiary after the adoption
of the Plan by the Board).

    

    (n)           “Non-Employee
Director” means a director of the Company or any Subsidiary who is not a common
law employee of the Company or any Subsidiary (including any corporation,
partnership, limited liability company or joint venture which becomes a
Subsidiary after the adoption of the Plan by the Board).

    

    (o)           “Non-Employee
Service Provider” means a consultant, advisor or other independent contractor
providing services to the Company or any Subsidiary (including any corporation,
partnership, limited liability company or joint venture which becomes a
Subsidiary after the adoption of the Plan by the Board).

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (p)           “Non-Qualified
Stock Option” or “NQSO” means an option to purchase Stock, granted under Article
VI herein, which is not an Incentive Stock Option.

    

    (q)           “Option”
means an Incentive Stock Option or a Non-Qualified Stock Option.

    

    (r)           “Option
Price” means the exercise price per share of Stock covered by an
Option.

    

    (s)           “Participant”
means a Member, a Non-Employee Service Provider or a Non-Employee Director who
has been granted an Award or Grant under the Plan and whose Award or Grant
remains outstanding.

    

    (t)           “Performance-Based
Compensation Award” means any Award for which exercise, full enjoyment or
receipt thereof by the Participant is contingent on satisfaction or achievement
of a Performance Goal applicable thereto. If a Performance-Based Compensation
Award is intended to be “performance-based compensation” within the meaning of
Section 162(m)(4)(C) of the Code, the grant of the Award, the establishment of
the Performance Goal, the making of any modifications or adjustments and the
determination of satisfaction or achievement of the Performance Goal shall be
made during the period or periods required under and in conformity with the
requirements of Section 162(m) of the Code. The terms and conditions of each
Performance-Based Compensation Award, including the Performance Goal and
Performance Period, shall be set forth in an Agreement or in a subplan of the
Plan which is incorporated by reference into an Agreement.

    

    (u)           “Performance
Goal” means one or more performance measures or goals set by the Committee in
its discretion for each grant of a Performance-Based Compensation Award. The
extent to which such performance measures or goals are met will determine the
amount or value of the Performance-Based Compensation Award to which a
Participant is entitled to exercise, receive or retain. For purposes of this
Plan, a Performance Goal may include any one or more of the following
performance criteria, either individually, alternatively or in any combination,
subset or component, applied to either the Company as a whole or to a business
unit, subsidiary or business segment, either individually, alternatively or in
any combination, and measured either 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 in the Award: (i) cash flow, (ii) earnings (including, without
limitation, gross margin, earnings before interest, taxes, depreciation and
amortization (“EBITDA”), earnings before interest and taxes (“EBIT”), earnings
before taxes (“EBT”), earnings after taxes (“EAT”) and net earnings), (iii)
earnings per share (basic or diluted), (iv) growth in earnings or earnings per
share, (v) stock price, (vi) return on equity or average stockholders’ equity,
(vii) total stockholder return, (viii) return on capital, (ix) return on assets
or net assets, (x) return on investment, (xi) revenue, (xii) production related
items whether based on tons, feet or other standardized unit (including, without
limitation, produced tons, released tons, delivered tons, shipped tons, feet per
shift for continuous and highwall miners, feet of retreat per day for longwalls,
tons per manhour for surface mining, average per ton or foot realization, cash
cost per ton or foot, and total manhours), (xiii) reserve acquisitions, (xiv)
income or net income, (xv) operating income or net operating income, (xvi)
operating profit or net operating profit,

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (xvii)
operating margin, (xviii) return on operating revenue, (xix) market share, (xx)
contract awards, fulfillment or backlog, (xxi) overhead or other expense
reduction, (xxii) growth in stockholder value relative to the one- or two-year
moving average of the S&P 500, S&P 600 Smallcap Index, Bloomberg U.S.
Coal Index, or other index of which the Company is a part, (xxiii) liquidity,
(xxiv) credit rating, (xxv) strategic plan development and implementation,
(xxvi) succession plan development and implementation, (xxvii) retention of
members or classes of members (whether or not executives), (xxviii) improvement
in workforce diversity, (xxix) improvement in safety performance, (xxx)
improvements in environmental performance, (xxxi) capital resource management
plan development and implementation, (xxxii) improved internal financial
controls plan development and implementation, (xxxiii) corporate tax savings,
(xxxiv) corporate cost of capital reduction, (xxxv) obtaining awards, rebates,
concessions, credits, and/or recoveries, (xxxvi) investor relations program
development and implementation, (xxxvii) corporate relations program development
and implementation, (xxxviii) public policy accomplishments, (xxxix) executive
performance plan development and implementation, and (xl) tax provision rate for
financial statement purposes.

    

    The
Committee, in its sole discretion, may adjust any evaluation of performance
under a Performance Goal to take into account any of the following events that
occurs during a performance period:  (i) asset write-downs, (ii)
litigation or claim judgments or settlements, (iii) the effect of changes in tax
law, accounting principles or other such laws or provisions affecting reported
results, (iv) accruals for reorganization and restructuring programs, and (v)
any extraordinary non-recurring items as described in Accounting Principles
Board Opinion No. 30 (or in any replacement thereof) and/or in management’s
discussion and analysis of financial condition and results of operations
appearing in the Company’s annual report to stockholders for the applicable
year. A Performance Goal may include a threshold level of performance below
which no payment or vesting may occur, levels of performance at which specified
payments or specified vesting will occur, and a maximum level of performance
above which no additional payment or vesting will occur. Each of the Performance
Goals shall be determined, where applicable and except as provided above, in
accordance with generally accepted accounting principles. Prior to the payment
of any compensation under an Award intended to qualify as “performance-based
compensation” under Section 162(m) of the Code, the Committee shall certify the
extent to which any Performance Goal and any other material terms under such
Award have been satisfied (other than in cases where such relate solely to the
increase in the value of Stock).

    

    (v)           “Performance
Period” means the time period during which the Performance Goal must be met in
connection with a Performance-Based Compensation Award. Such time period shall
be set by the Committee.

    

    (w)           “Period
of Restriction” means the period during which Restricted Stock or Restricted
Units are restricted as provided in the Plan.

    

    (x)           “Plan”
means the Massey Energy Company 2006 Stock and Incentive Compensation Plan, as
herein described and as hereafter from time to time amended.

    
      
         

      

      
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    (y)           “Restricted
Stock” means an Award of Stock granted to a Participant pursuant to Section 6.7
or 7.6 or Article VIII herein which is subject to restrictions and forfeiture
until the designated conditions for the lapse of the restrictions are
satisfied.

    

    (z)           “Restricted
Unit” means an Award, designated as a Restricted Unit, which is a bookkeeping
entry granted to a Participant pursuant to Article IX herein and valued by
reference to the Fair Market Value of a Share, which is subject to restrictions
and forfeiture until the designated conditions for the lapse of the restrictions
are satisfied. A Restricted Unit is sometimes referred to as a “Restricted Unit”
or a “restricted stock unit.” Restricted Units represent an unfunded and
unsecured obligation of the Company, except as otherwise provided for by the
Committee.

    

    (aa)           “Stock”
or “Shares” means the common stock of the Company.

    

    (bb)           “Stock
Appreciation Right” or “SAR” means an Award, designated as a stock appreciation
right, granted to a Participant pursuant to Article VII herein.

    

    (cc)           “Subsidiary”
means any subsidiary corporation of the Company within the meaning of Section
424(f) of the Code (“Section 424(f) Corporation”) and any partnership, limited
liability company or joint venture in which either the Company or Section 424(f)
Corporation is at least a fifty percent (50%) equity participant.

    

    (dd)           “Unrestricted
Stock Award” means an award of Stock granted to a Participant pursuant to
Article X herein.

    

    ARTICLE
III

    Administration

    

    3.1           Administration of the Plan by the
Committee. The Plan shall be administered by the Committee which shall
have all powers necessary or desirable for such administration. The express
grant in the Plan of any specific power to the Committee shall not be construed
as limiting any power or authority of the Committee. In addition to any other
powers and, subject to the provisions of the Plan, the Committee shall have the
following specific powers: (i) to determine the terms and conditions upon
which the Awards may be made and exercised; (ii) to determine all terms and
conditions of each Agreement, which need not be identical; (iii) to
construe and interpret the Agreements and the Plan; (iv) to establish,
amend or waive rules or regulations for the Plan’s administration; (v) to
accelerate the exercisability of any Award, the end of a Performance Period or
termination of any Period of Restriction or other restrictions imposed under the
Plan; and (vi) to make all other determinations and take all other actions
necessary or advisable for the administration of the Plan.

    

    For purposes of determining the
applicability of Section 422 of the Code (relating to Incentive Stock Options),
or in the event that the terms of any Award provide that it may be exercised
only during employment or service or within a specified period of time after
termination of employment or service, the Committee may decide to what extent
leaves of

    
      
         

      

      
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    absence
for governmental or military service, illness, temporary disability, or other
reasons shall not be deemed interruptions of employment or service or continuous
employment or service.

    

    Subject to limitations under applicable
law, the Committee is authorized in its discretion to issue Awards and/or accept
notices, elections, consents and/or other forms or communications by
Participants by electronic or similar means, including, without limitation,
transmissions through e-mail, voice mail, recorded messages on electronic
telephone systems, and other permissible methods, on such basis and for such
purposes as it determines from time to time.

    

    A majority of the entire Committee
shall constitute a quorum and the action of a majority of the members present at
any meeting, 24 hours notice having been given or waived, at which a quorum is
present (in person or as otherwise permitted by applicable law), or acts
approved in writing by all of the Committee without a meeting, shall be deemed
the action of the Committee.

    

    The Committee may designate the
Secretary of the Company or other Company employees to assist the Committee in
the administration of the Plan, and may grant authority to such persons to
execute agreements evidencing Awards made under this Plan or other documents
entered into under the Plan on behalf of the Committee or the
Company.

    

    3.2           Selection of Participants.
The Committee shall have the authority to grant Awards under the Plan,
from time to time, to such Members, Non-Employee Service Providers and/or
Non-Employee Directors as may be selected by it. Each Award shall be evidenced
by an Agreement.

    

    3.3           Decisions
Binding.  All determinations and decisions made by the
Committee pursuant to the provisions of the Plan shall be final, conclusive and
binding.

    

    3.4           Requirements of Rule 16b-3 of the
Exchange Act and Section 162(m) of the Code.  Notwithstanding
any other provision of the Plan, the Board or the Committee may impose such
conditions on any Award, and amend the Plan in any such respects, as may be
required to satisfy the requirements of Rule 16b-3 of the Exchange Act, as
amended (or any successor or similar rule).

    

    Any provision of the Plan to the
contrary notwithstanding, and except to the extent that the Committee determines
otherwise: (i) transactions by and with respect to officers and directors
of the Company who are subject to Section 16(b) of the Exchange Act (hereafter,
“Section 16 Persons”) shall comply with any applicable conditions of Rule 16b-3
of the Exchange Act; (ii) transactions with respect to persons whose
remuneration is subject to the provisions of Section 162(m) of the Code shall
conform to the requirements of Section 162(m)(4)(C) of the Code; and
(iii) every provision of the Plan shall be administered, interpreted, and
construed to carry out the foregoing provisions of this sentence.

    

    Notwithstanding any provision of the
Plan to the contrary, the Plan is intended to give the Committee the authority
to grant Awards that qualify as performance-based compensation under Section
162(m)(4)(C) of the Code as well as Awards that do not so qualify. Every
provision of

    
      
         

      

      
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    the Plan
shall be administered, interpreted, and construed to carry out such intention,
and any provision that cannot be so administered, interpreted, and construed
shall to that extent be disregarded; and any provision of the Plan that would
prevent an Award that the Committee intends to qualify as performance-based
compensation under Section 162(m)(4)(C) of the Code from so qualifying shall be
administered, interpreted, and construed to carry out such intention, and any
provision that cannot be so administered, interpreted, and construed shall to
that extent be disregarded.

    

    3.5           Indemnification of
Committee.  In addition to such other rights of indemnification
as they may have as directors or as members of the Committee, the members of the
Committee shall be indemnified by the Company against reasonable expenses,
including attorneys’ fees, actually and reasonably incurred in connection with
the defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan or any Award
granted or made hereunder, and against all amounts reasonably paid by them in
settlement thereof or paid by them in satisfaction of a judgment in any such
action, suit or proceeding, if such members acted in good faith and in a manner
which they believed to be in, and not opposed to, the best interests of the
Company and its Subsidiaries.

    

    ARTICLE
IV

    Stock
Subject to the Plan

    

    4.1           Number of Shares Authorized for
Issuance during Term of the Plan. Subject to adjustment as provided in
Section 4.4 herein and to the next paragraph of this Section, the maximum
aggregate number (the “Maximum Aggregate Number”) of Shares that may be issued
pursuant to Awards made under the Plan during the term of the Plan stated in
Section 1.3 shall not exceed the sum of (i) 5,050,000 and (ii) that
number of Shares that (A) are represented by restricted stock or unexercised
vested or unvested stock options which previously have been granted and are
outstanding under the Massey Energy Company 1988 Executive Stock Plan, the
Massey Energy Company Stock Plan for Non-Employee Directors, the Massey Energy
Company 1996 Executive Stock Plan, the Massey Energy Company 1997 Restricted
Stock Plan for Non-Employee Directors, and the Massey Energy Company 1999
Executive Performance Incentive Plan as of the Effective Date and (B) expire or
otherwise lapse, are terminated or forfeited, are settled in cash, or are
withheld or delivered to the Company for tax purposes at any time after the
Effective Date. No awards shall be granted under the Massey Energy Company 1988
Executive Stock Plan, Massey Energy Company Stock Plan for Non-Employee
Directors, Massey Energy Company 1996 Executive Stock Plan, Massey Energy
Company 1997 Restricted Stock Plan for Non-Employee Directors, and the Massey
Energy Company 1999 Executive Performance Incentive Plan on or after the
Effective Date.  Notwithstanding the foregoing, subject to adjustment
as provided in Section 4.4 and the proviso at the end of this sentence, no more
than 75% of the Shares available for Award under the Plan on or after
May 19, 2009 may, in the aggregate, be issued in connection with Awards
(“Full Share Awards”) granted in any form provided for under the Plan other than
Options or Stock Appreciation Rights; provided, however, that any additions back
to the available pool of Shares attributable to Full Share Awards granted prior
to May 19, 2009 shall again be eligible for grant as Full Share Awards
without regard to,

    
      
         

      

      
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    and shall
not be considered subject to, the 75% limit, and any additions back to the
available pool of Shares attributable to Awards granted prior to May 19,
2009 which are not Full Share Awards shall only again be eligible for grant as
Awards which are not Full Share Awards and shall not be considered in
determining compliance with the 75% limit.

    

    Except as provided in Sections 4.2 and
4.3 herein, only Shares actually issued in connection with the exercise of, or
as other payment for Awards, under the Plan shall reduce the number of Shares
available for future Awards under the Plan. Awards settled in cash shall not
count against the Maximum Aggregate Number.

    

    Stock that may be issued under the Plan
may either be Shares reacquired by the Company, including Shares purchased in
the open market, authorized but unissued Shares, Shares held in treasury, or
Shares held in a grantor trust created by the Company. Such Shares, however,
shall count against the Maximum Aggregate Number, except as provided in the
foregoing paragraph.

    

    The Company, during the term of the
Plan and thereafter during the term of any outstanding Award which may be
settled in Stock, shall reserve and keep available a number of Shares sufficient
to satisfy the requirements of the Plan.

    

    4.2           Lapsed Awards or Forfeited Shares.
If any Award granted under the Plan terminates, expires, or lapses for
any reason other than by virtue of exercise of the Award, or if Shares issued
pursuant to Awards are forfeited, any Stock subject to such Award again shall be
available for the grant of an Award under the Plan.

    

    4.3           Shares Used as Payment of Exercise
Price or for Tax Withholding in Connection with Options and Stock Appreciation
Rights and Shares Purchased on the Open Market with the Proceeds of an Option
Exercise.  Notwithstanding the foregoing, Shares subject to an
Award under the Plan may not again be made available for issuance under the Plan
if such Shares, in connection with exercises occurring on or after May 19,
2009, are: (i) Shares that were subject to an Option or a stock-settled
Stock Appreciation Right and were not issued upon the net settlement or net
exercise of such Option or Stock Appreciation Right, (ii) Shares delivered
to or withheld by the Company to pay the exercise price or the withholding taxes
under Options or Stock Appreciation Rights, or (iii) Shares repurchased on
the open market with the proceeds of an Option exercise.  The
foregoing shall not affect the number of Shares available for Award under the
Plan attributable to exercises prior to May 19, 2009.

    

    4.4           Capital
Adjustments.  If the outstanding securities of the class then
subject to the Plan are increased, decreased or exchanged for or converted into
cash, property or a different number or kind of shares or securities, or if
cash, property or shares or securities are distributed in respect of such
outstanding securities, in either case as a result of a reorganization, merger,
consolidation, recapitalization, restructuring, reclassification, dividend
(other than a regular, quarterly cash dividend) or other distribution, stock
split, reverse stock split, spin-off or the like, or if substantially all of the
property and assets of the Company are sold, then (i) the Committee shall
make appropriate and proportionate adjustments in the number and class of Shares
subject to, or cash or other property that may be acquired pursuant to, each
outstanding Award and the

    
      
         

      

      
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    Option
Price therefor in such manner as the Committee shall determine in order to
retain the economic value or opportunity provided immediately prior to the
transaction for which the adjustment is made and (ii) in all cases, unless
the terms of such transaction shall provide otherwise, the Committee may make
appropriate and proportionate adjustments in the maximum number and kind of
shares or other securities, and the annual limits on and aggregate number of
Shares for which Awards, that may be issued pursuant to such Awards thereafter
granted under the Plan. Notwithstanding anything to contrary in the foregoing,
any such adjustment shall be made in such a manner that will not affect the
status of any Award intended to be excepted from treatment as nonqualified
deferred compensation under Section 409A of the Code, qualify as an ISO under
Section 422 of the Code or as “performance based compensation” under Section
162(m) of the Code.  No fractional interests will be issued under the
Plan resulting from any such adjustments.

    

    ARTICLE
V

    Eligibility

    

    Persons eligible to participate in the
Plan are (i) Members, (ii) Non-Employee Service Providers and
(iii) Non-Employee Directors. Multiple grants of Awards under the Plan may
be made in any calendar year to one or more Participants.

    

    ARTICLE
VI

    Stock
Options

    

    6.1           Grant of Options. Subject to
the terms and conditions of the Plan, the Committee, at any time and from time
to time, may grant Options under the Plan (with one Option representing one
Share) to Members, Non-Employee Service Providers and Non-Employee Directors in
such amounts as it shall determine; provided, however, that
(i) Non-Employee Service Providers and Non-Employee Directors may only be
granted Non-Qualified Stock Options, (ii) no Participant may be granted
Options in any calendar year for more than 400,000 Shares, provided that only
for purposes of qualifying for the performance-based compensation exception
under Section 162(m) of the Code, Options which are awarded and then cancelled
and Options for which the exercise price is lowered both continue to count
against this limit, and (iii) the aggregate Fair Market Value (determined
at the time the Award is made) of Shares with respect to which any Participant
may first exercise ISOs granted under the Plan during any calendar year may not
exceed $100,000 or such amount as shall be specified in Section 422 of the Code
and rules and regulations thereunder.

    

    6.2           Option Agreement. Each Option
grant shall be evidenced by an Agreement that shall specify the type of Option
granted, the Option Price (as hereinafter defined), the duration of the Option,
the number of Shares to which the Option pertains, any conditions imposed upon
the exercisability of Options in the event of retirement, death, disability or
other termination of employment or service, and such other provisions as the
Committee shall determine. The Agreement shall specify whether the Option is
intended to be an Incentive Stock Option within the meaning of Section 422 of
the Code, or a Non-Qualified Stock Option not intended to be an Incentive Stock
Option within the meaning of Section 422 of the Code; provided, however,
that

    
      
         

      

      
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    if an
Option is intended to be an Incentive Stock Option but fails to be such for any
reason, it shall continue in full force and effect as a Non-Qualified Stock
Option. If an Option is intended to be a Performance-Based Compensation Award,
the terms and conditions thereof, including the Performance Goal and Performance
Period, shall be set forth in an Agreement or in a subplan of the Plan which is
incorporated by reference into an Agreement and the requirements to satisfy or
achieve the Performance Goal as so provided therein shall be considered to be
restrictions under the Plan.

    

    6.3           Option Price. The Option
Price of an Option shall be determined by the Committee subject to the following
limitations. The Option Price shall not be less than 100% of the Fair Market
Value of such Stock on the Grant Date. In addition, an ISO granted to a Member
who, at the time of grant, owns (within the meaning of Section 424(d) of the
Code) stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company, shall have an Option Price which is at least
equal to 110% of the Fair Market Value of such Stock on the Grant
Date.

    

    6.4           Duration of Options. Each
Option shall expire at such time as the Committee shall determine; provided,
however, that no Option shall be exercisable after the expiration of ten years
from its Award Date. In addition, an ISO granted to a Member who, at the time of
grant, owns (within the meaning of Section 424(d) of the Code) stock possessing
more than 10% of the total combined voting power of all classes of stock of the
Company, shall not be exercisable after the expiration of five years from its
Grant Date.

    

    6.5           Exercisability. Options
granted under the Plan shall be exercisable at such times and be subject to such
restrictions and conditions as the Committee shall determine, which need not be
the same for all Participants.

    

    6.6           Method of Exercise. Options
shall be exercised by the delivery of a written notice to the Company in the
form prescribed by the Committee setting forth the number of Shares with respect
to which the Option is to be exercised, accompanied by full payment for the
Shares and payment of (or an arrangement satisfactory to the Company for the
Participant to pay) any tax withholding required in connection with the Option
exercise. The Option Price shall be payable to the Company in full either in
cash, by delivery of Shares of Stock valued at Fair Market Value at the time of
exercise, or by a combination of the foregoing, except as otherwise provided
below.

    

    To the extent permitted under the
applicable laws and regulations, at the request of the Participant and with the
consent of the Committee, the Company agrees to cooperate in a “cashless
exercise” of an Option. The cashless exercise shall be effected by the
Participant delivering to a securities broker, selected or approved by the
Committee, instructions to exercise all or part of the Option, including
instructions to sell a sufficient number of shares of Stock to cover the costs
and expenses associated therewith.

    

    As soon as practicable, after receipt
of written notice and payment of the Option Price and completion of payment of
(or an arrangement satisfactory to the Company for the Participant
to

    
      
         

      

      
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    pay) any
tax withholding required in connection with the Option exercise, the Company
shall cause the appropriate number of Shares to be issued in the Participant’s
name, which issuance shall be effected in book entry or electronic form,
provided that issuance and delivery in certificated form shall occur if the
Participant so requests in writing or the Committee so directs.

    

    6.7           Restrictions on Stock
Transferability.  The Committee may impose such restrictions on
any Shares acquired pursuant to the exercise of an Option under the Plan as it
may deem advisable, including, without limitation, restrictions under applicable
Federal securities law, under the requirements of the New York Stock Exchange or
any stock exchange upon which such Shares are then listed and under any blue sky
or state securities laws applicable to such Shares. In the event the Committee
so provides in an Agreement pertaining to an Option, Stock delivered on exercise
of the Option may be designated as Restricted Stock or Stock subject to a
buyback right by the Company in the amount of, or based on, the Option Price
therefor or otherwise in the event the Participant does not complete a specified
service period after exercise.

    

    ARTICLE
VII

    Stock
Appreciation Rights

    

    7.1           Grant of Stock Appreciation Rights.
Subject to the terms and conditions of the Plan, the Committee, at any
time and from time to time, may grant Stock Appreciation Rights under the Plan
to Members and Non-Employee Service Providers in such amounts as it shall
determine; provided, however, that no Participant may be granted more than
400,000 SARs in any calendar year; and provided, further, that only for purposes
of qualifying for the performance-based compensation exception under Section
162(m) of the Code, SARs for which the Base Value provided in Section 7.5
against which the stock appreciation is determined is lowered continue to count
against this limit.

    

    7.2           SAR
Agreement.  Each SAR grant shall be evidenced by an Agreement
that shall specify the Base Value (as defined in Section 7.5), the duration of
the SAR, the number of Shares to which the SAR pertains, any conditions imposed
upon the exercisability of the SAR in the event of retirement, death, disability
or other termination of employment or service, and such other provisions as the
Committee shall determine. SARs granted under the Plan shall be exercisable at
such times and be subject to such restrictions and conditions as the Committee
shall determine, which need not be the same for all Participants consistent with
the Plan. If a SAR Grant is intended to be a Performance-Based Compensation
Award, the Performance Goal and Performance Period shall be set forth in an
Agreement or in a subplan of the Plan which is incorporated by reference into an
Agreement and the requirements to satisfy or achieve the Performance Goal as so
provided therein shall be considered to be restrictions under the
Plan.

    

    7.3           Exercise of SARs. SARs may be
exercised with respect to all or part of the Shares upon whatever terms and
conditions the Committee, in its sole discretion, imposes upon such SARs. SARs
shall be exercised by delivery to the Committee of a notice of exercise in the
form prescribed by the Committee.

    
      
         

      

      
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    7.4           Other Conditions Applicable to
SARs.  In no event shall the term of any SAR granted under the
Plan exceed ten years from the Grant Date. A SAR may be exercised only when the
Fair Market Value of a Share exceeds the Base Value (as defined in Section
7.5).

    

    7.5           Payment after Exercise of
SARs.  Subject to the provisions of the Agreement, upon the
exercise of SARs, the Participant is entitled to receive, without any payment to
the Company (other than applicable tax withholding when due), an amount equal
(the “SAR Value”) to the product of multiplying (i) the number of Shares with
respect to which the SAR is exercised by (ii) an amount equal to the excess of
(A) the Fair Market Value per Share on the date of exercise of the SAR over (B)
the “Base Value” of the SAR designated in the Agreement (which “Base Value”
shall be the Fair Market Value per Share on the Award Date or any amount greater
than such Fair Market Value stated as the Base Value in the Agreement). The
Agreement may provide for payment of the SAR Value at the time of exercise or,
on an elective or non-elective basis, for payment of the SAR Value at a later
date, adjusted (if so provided in the Agreement) from the date of exercise based
on an interest, dividend equivalent, earnings, or other basis (including deemed
investment of the SAR Value in Shares) set out in the Agreement (the “adjusted
SAR Value”). The Committee is expressly authorized to grant SARs which are
deferred compensation covered by Section 409A of the Code, as well as SARs which
are not deferred compensation covered by Section 409A of the Code.

    

    Payment of the SAR Value or adjusted
SAR Value to the Participant shall be made (i) in Shares, valued at the
Fair Market Value on the date of exercise in the case of an immediate payment
after exercise or at the Fair Market Value on the date of settlement in the
event of an elective or non-elective delayed payment, (ii) in cash or
(iii) in a combination thereof as determined or permitted by the Committee,
either at the time of the Award or, unless otherwise provided in the applicable
Agreement, thereafter, and as provided in the Agreement. Any payment in Shares
shall be effected in book entry or electronic form, provided that issuance and
delivery in certificated form shall occur if the Participant so requests in
writing or the Committee so directs.

    

    7.6           Restrictions on Stock
Transferability.  The Committee may impose such restrictions on
any Shares acquired pursuant to the exercise of a SAR under the Plan as it may
deem advisable, including, without limitation, restrictions under applicable
Federal securities law, under the requirements of the New York Stock Exchange or
any stock exchange upon which such Shares are then listed and under any blue sky
or state securities laws applicable to such Shares. In the event the Committee
so provides in an Agreement pertaining to a SAR, Stock delivered on exercise of
the SAR may be designated as Restricted Stock or Stock subject to a buyback
right by the Company in the amount of, or based on, the Base Value (as defined
in Section 7.5) therefor or otherwise in the event the Participant does not
complete a specified service period after exercise.

    
      
         

      

      
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    ARTICLE
VIII

    Restricted
Stock

    

    8.1           Grant of Restricted
Stock.  Subject to the terms and conditions of the Plan, the
Committee, at any time and from time to time, may grant Shares of Restricted
Stock under the Plan to such Members, Non-Employee Service Providers and
Non-Employee Directors and in such amounts as it shall determine; provided,
however, that no Participant may be granted more than 200,000 Shares of
Restricted Stock in any calendar year. Participants receiving Restricted Stock
Awards are not required to pay the Company therefor (except for applicable tax
withholding when due) other than the rendering of services. As determined by the
Committee, Shares of Restricted Stock may be issued in book entry or electronic
form or in certificated form.

    

    Notwithstanding anything to the
contrary in the foregoing, the Committee is expressly authorized to make Awards
of Restricted Stock based on a Member’s, Non-Employee Service Provider’s or
Non-Employee Director’s acquisition and/or holding of Stock (including for this
purpose any deemed investment in Stock) in his individual capacity or under any
nonqualified deferred compensation plan or tax qualified plan (if permissible
under applicable qualification rules of the Code) maintained by the Company or a
Subsidiary.

    

    8.2           Restricted Stock
Agreement.  Each Restricted Stock Award shall be evidenced by
an Agreement that shall specify the Period of Restriction, the number of Shares
of Restricted Stock granted, and the applicable restrictions (whether
service-based restrictions, with or without performance acceleration, and/or
performance-based restrictions) and such other provisions as the Committee shall
determine. If an Award of Restricted Stock is intended to be a Performance-Based
Compensation Award, the terms and conditions of such Award, including the
Performance Goal and Performance Period, which shall be no less than one year,
shall be set forth in an Agreement or in a subplan of the Plan which is
incorporated by reference into an Agreement and the requirements to satisfy or
achieve the Performance Goal as so provided therein shall be considered to be
restrictions under the Plan. If vesting of an Award of Restricted Stock is
intended to be service-based (whether solely service-based or service-based with
performance acceleration), the Award’s service-based vesting period shall be at
least three years, though the Award’s service-based vesting may occur ratably
over the course of such period (e.g. a three year service-based award may vest
one-third on each of the first, second and third anniversaries of the Grant
Date). Unless otherwise determined by the Committee, custody of Shares of
Restricted Stock maintained in certificated form shall be retained by the
Company until the termination of the restrictions pertaining
thereto.

    

    8.3           Other
Restrictions.  The Committee may impose such other restrictions
under applicable Federal or state securities laws as it may deem advisable, and
may legend the certificates representing Restricted Stock to give appropriate
notice of such restrictions.

    

    8.4           Certificate
Legend.  In addition to any legends placed on certificates
pursuant to Section 8.3 herein, each certificate representing Shares of
Restricted Stock issued pursuant to the Plan shall bear the following
legend:

    
      
         

      

      
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    “The sale
or other transfer of the shares of Massey Energy Company stock represented by
this certificate, whether voluntary, involuntary, or by operation of law, is
subject to certain restrictions on transfer set forth in the Massey Energy
Company 2006 Stock and Incentive Compensation Plan, in the rules and
administrative procedures adopted pursuant to such Plan, and in an associated
Restricted Stock Agreement. A copy of the Plan, such rules and procedures, and
the applicable Restricted Stock Agreement may be obtained from the Secretary of
Massey Energy Company.”

    

    8.5           Removal of
Restrictions.  Except as otherwise provided in this Article,
Shares of Restricted Stock covered by each Award of, or payable in, Restricted
Stock made under the Plan shall become freely transferable by the Participant
after the last day of the Period of Restriction and, where applicable, after a
determination of the satisfaction or achievement on any applicable Performance
Goal by the Committee. The Shares of Stock shall remain in book entry or
electronic form, unless and until the Participant requests in writing, or the
Committee directs, for certificates evidencing the Shares to be
issued.  Such Shares, having been released from the restrictions,
shall not bear the restrictive legends required by Section 8.3 or
8.4.

    

    8.6           Voting
Rights.  Unless otherwise provided in the Agreement, during the
Period of Restriction, Participants holding Shares of Restricted Stock granted
hereunder may exercise voting rights with respect to those Shares.

    

    8.7           Dividends and Other
Distributions.  Unless otherwise provided in the Agreement
(which may or may not provide for the accumulation and payment of dividends and
other distributions made in cash or property other than Shares until the Shares
of Restricted Stock to which the dividends and other distributions relates
vest), during the Period of Restriction, Participants entitled to or holding
Shares of Restricted Stock granted hereunder shall be entitled to receive all
dividends and other distributions paid in cash or property other than Shares
with respect to those Shares of Restricted Stock. If any dividends or
distributions are paid in Shares, such Shares shall be subject to the same
restrictions on transferability and the same rules for vesting, forfeiture and
custody as the Shares of Restricted Stock with respect to which they were
distributed. If provided in the Agreement and if a Participant timely elects in
accordance with the requirements for compliance with the nonqualified deferred
compensation provisions of Section 409A of the Code, Participants may be given
the right to elect to defer the receipt of such dividends and other
distributions until the Participant ceases employment or service with the
Company and its Subsidiaries, until a specified time or until the Shares of
Restricted Stock to which the dividends and other distributions relate
vest.

    

    ARTICLE
IX

    Restricted
Units

    

    9.1           Grant of Restricted
Units.  Subject to the terms and conditions of the Plan, the
Committee, at any time and from time to time, may grant Restricted Units under
the Plan (with one Restricted Unit representing one Share) to such Members,
Non-Employee Service Providers and Non-Employee Directors and in such amounts as
it shall determine; provided, however, that no Participant may be granted more
than 200,000 Restricted Units in any calendar year.

    
      
         

      

      
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    Participants
receiving Restricted Unit Awards are not required to pay the Company therefor
(except for applicable tax withholding when due) other than the rendering of
services.

    

    Notwithstanding anything to the
contrary in the foregoing, the Committee is expressly authorized to make Awards
of Restricted Units based on a Member’s, Non-Employee Service Provider’s or
Non-Employee Director’s acquisition and/or holding of Stock (including for this
purpose any deemed investment in Stock) in his individual capacity or under any
nonqualified deferred compensation plan or tax qualified plan (if permissible
under applicable qualification rules of the Code) maintained by the Company or a
Subsidiary.

    

    9.2           Restricted Unit
Agreement.  Each Restricted Unit Award shall be evidenced by an
Agreement that shall specify the Period of Restriction, the number of Restricted
Units granted, and the applicable restrictions (whether service-based
restrictions, with or without performance acceleration, and/or performance-based
restrictions) and such other provisions as the Committee shall determine. If an
Award of Restricted Units is intended to be a Performance-Based Compensation
Award, the terms and conditions of such Award, including the Performance Goal
and Performance Period, which shall be no less than one year, shall be set forth
in an Agreement or in a subplan of the Plan which is incorporated by reference
into an Agreement and the requirements to satisfy or achieve the Performance
Goal as so provided therein shall be considered to be restrictions under the
Plan. If vesting of an Award of Restricted Units is intended to be service-based
(whether solely service-based or service-based with performance acceleration),
the Award’s service-based vesting period shall be at least three years, though
vesting may occur ratably over the course of such period (e.g. a three year
service-based award may vest one-third on each of the first, second and third
anniversaries of the Grant Date).

    

    9.3           Dividends and Other
Distributions.  Unless otherwise provided in the Agreement
(which may or may not provide for the current payment, or for the accumulation
subject to the same restrictions, vesting, forfeiture and payment as the
Restricted Units to which they are attributable, of dividends and other
distributions made in cash or property other than Shares), during the Period of
Restriction, Participants holding Restricted Units shall have no rights to
dividends and other distributions made in cash or property other than Shares
which would have been paid with respect to the Shares represented by those
Restricted Units if such Shares were outstanding. Unless otherwise provided in
the Agreement, if any deemed dividends or other distributions would be paid in
Shares, such Shares shall be considered to increase the Participant’s Restricted
Units with respect to which they were declared based on one Share equaling one
Restricted Unit. In addition, unless otherwise provided in the Agreement, during
the Period of Restriction, any such deemed dividends and other distributions for
which rights are provided but which are not paid currently shall be deemed
converted to additional Restricted Units based on the Fair Market Value of a
Share on the date of payment or distribution of the deemed dividend or
distribution. If provided in the Agreement and if a Participant timely elects in
accordance with the requirements for compliance with the nonqualified deferred
compensation provisions of Section 409A of the Code, Participants may be given
the right to elect to receive or defer the payment of any such deemed dividends
and other distributions until the Participant ceases employment or service with
the Company and its Subsidiaries, until a specified time or until the Restricted
Units to which the dividends and other distributions relate
vest.

    
      
         

      

      
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    9.4           Payment after Lapse of
Restrictions.  Subject to the provisions of the Agreement, upon
the lapse of restrictions with respect to a Restricted Unit, the Participant is
entitled to receive, without any payment to the Company (other than applicable
tax withholding when due), an amount equal to the product of multiplying (i) the
number of Shares with respect to which the restrictions lapse by (ii) the Fair
Market Value per Share on the date the restrictions lapse (such amount, the “RU
Value”).

    

    The Agreement may provide for payment
of the RU Value at the time of vesting or, on an elective or non-elective basis,
for payment of the RU Value at a later date, adjusted (if so provided in the
Agreement) from the date of exercise based on an interest, dividend equivalent,
earnings, or other basis (including deemed investment of the RU Value in Shares)
set out in the Agreement (the “adjusted RU Value”). The Committee is expressly
authorized to grant Restricted Units which are deferred compensation covered by
Section 409A of the Code, as well as Restricted Units which are not deferred
compensation covered by Section 409A of the Code.

    

    Payment of the RU Value or adjusted RU
Value to the Participant shall be made (i) in Shares, valued at the Fair
Market Value on the date or dates the restrictions on the Award lapse in the
case of an immediate payment after vesting or at the Fair Market Value on the
date of settlement in the event of an elective or non-elective delayed payment,
(ii) in cash or (iii) in a combination thereof as determined or
permitted by the Committee, either at the time of the Award or, unless otherwise
provided in the applicable Agreement, thereafter, and as provided in the
Agreement. Any payment in Shares shall be effected in book entry or electronic
form, provided that issuance and delivery in certificated form shall occur if
the Participant so requests in writing or the Committee so directs.

    

    ARTICLE
X

    Unrestricted
Stock

    

    Grant of Unrestricted Stock
Awards.  Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant Unrestricted Stock
Awards under the Plan to one or more Members and Non-Employee Service Providers
in such amount or amounts as it shall determine; provided, however, that no
Participant may be granted Unrestricted Stock Awards in any calendar year for
more than 200,000 Shares and that the aggregate number of Shares that may be
issued under the Plan as Unrestricted Stock Awards during the term of the Plan
shall not exceed 5% of the Maximum Aggregate Number of Shares as determined in
Section 4.1. Participants receiving Unrestricted Stock Awards are not required
to pay the Company therefor (except for applicable tax withholding when due).
Payment of a Unrestricted Stock Award shall be effected as soon as practicable
after the Award Date in book entry or electronic form, provided that issuance
and delivery in certificated form shall occur if the Participant so requests in
writing or the Committee so directs.

    

    Notwithstanding anything to the
contrary in the foregoing, the Committee is expressly authorized to make Awards
of Unrestricted Stock based on a Member’s, Non-Employee Service Provider’s or
Non-Employee Director’s acquisition and/or holding of Stock (including for
this

    
      
         

      

      
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    purpose
any deemed investment in Stock) in his individual capacity or under any
nonqualified deferred compensation plan or tax qualified plan (if permissible
under applicable qualification rules of the Code) maintained by the Company or a
Subsidiary.

    

    ARTICLE
XI

    Incentive
Awards

    

    11.1           Incentive
Award.  Subject to the terms and conditions of the Plan,
Incentive Awards may be granted to Members and Non-Employee Service Providers at
any time and from time to time as shall be determined by the Committee. Each
Incentive Award will confer upon the Participant the opportunity to earn a
future payment tied to the level of achievement with respect to one or more
performance criteria established for a performance period of not less than one
year. Each Incentive Award shall contain provisions regarding (i) the target,
minimum and maximum amounts payable to the Participant as an Incentive Award,
(ii) the performance criteria and level of achievement versus these criteria
which shall determine the amount of such payment, (iii) the period as to which
performance shall be measured for establishing the amount of any payment, (iv)
the timing of any payment earned by virtue of performance, (v) restrictions on
the alienation or transfer of the Incentive Award prior to actual payment, (vi)
forfeiture provisions, (vii) immediate vesting provisions, and (viii) such
further terms and conditions, in each case not inconsistent with the Plan as may
be determined from time to time by the Committee. In establishing the provisions
of Incentive Awards, the Committee may refer to categories of such Awards as
parts of a subplan or a “Program” under the Plan, which names will not affect
the applicability of this Plan. The maximum amount payable as an Incentive Award
may be a multiple of the target amount payable, but the total of the maximum
amount payable pursuant to that portion of an Incentive Award granted under this
Plan for any fiscal year to any Participant that is intended to satisfy the
requirements for “performance based compensation” under Section 162(m) of the
Code and that portion of an Incentive Award granted under this Plan for any
fiscal year that is not intended to satisfy the requirements for “performance
based compensation” under Section 162(m) of the Code shall not exceed
$10,000,000.

    

    11.2           Performance
Criteria.  The Committee shall establish the performance
criteria and level of achievement versus the criteria which shall determine the
target and the minimum and the maximum amounts payable under an Incentive Award,
which criteria may be based on financial performance and/or personal performance
evaluations. The Committee may specify the percentage of the target Incentive
Award that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code. Notwithstanding anything to the
contrary herein, the performance criteria for any portion of an Incentive Award
that is intended by the Committee to satisfy the requirements for
“performance-based compensation” under Section 162(m) of the Code shall be a
measure based on one or more Performance Goals selected by the Committee and
specified at the time required under Section 162(m) of the Code.

    

    11.3           Timing and Form of
Payment.  The Committee shall determine the timing of payment
of any Incentive Award. The Committee may provide for or, subject to such terms
and conditions as the Committee may specify in the Incentive Award Agreement and
subject to the

    
      
         

      

      
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    requirements
of Section 409A of the Code, may permit a Participant to elect for the payment
of any Incentive Award to be deferred to a specified date or dates or to an
event. Payment of the amount to which a Participant shall be entitled upon the
settlement of an Incentive Award shall be made in cash, Shares, property or a
combination thereof as determined by the Committee. Payment may be made in a
lump sum or installments as determined or permitted by the Committee in the
Incentive Award Agreement. Payment may be made (i) in Shares, valued at the
Fair Market Value on the date of settlement, (ii) in cash or (iii) in
a combination thereof as determined or permitted by the Committee, either at the
time of the Award or, unless otherwise provided in the applicable Agreement,
thereafter, and as provided in the Agreement. Any payment in Shares shall be
effected in book entry or electronic form, provided that issuance and delivery
in certificated form shall occur if the Participant so requests in writing or
the Committee so directs.

    

    11.4           Restrictions on Stock
Transferability.  The Committee may impose such restrictions on
any Shares acquired in connection with the settlement of an Incentive Award
under the Plan as it may deem advisable, including, without limitation,
restrictions under applicable Federal securities law, under the requirements of
the New York Stock Exchange or any stock exchange upon which such Shares are
then listed and under any blue sky or state securities laws applicable to such
Shares. In the event the Committee so provides in an Agreement pertaining to
Incentive Award, Stock delivered connection with the settlement of an Incentive
Award may be designated as Restricted Stock or Stock subject to a buyback right
by the Company on such basis as the Committee may provide in the event the
Participant does not complete a specified service period after vesting in the
Award.

    

    11.5           Discretionary
Adjustments.  Notwithstanding satisfaction of any performance
goals, the amount paid under an Incentive Award on account of either financial
performance or personal performance evaluations may be reduced by the Committee
on the basis of such further considerations as the Committee in its sole
discretion shall determine.

    

    ARTICLE
XII

    Change
in Control

    

    In the event of a Change in Control of
the Company, the Committee, as constituted before such Change in Control, in its
sole discretion may, as to any outstanding Award, either at the time the Award
is made or any time thereafter, take any one or more of the following actions:
(i) provide for the acceleration of any time periods relating to the exercise or
realization of any such Award so that such Award may be exercised or realized in
full on or before a date initially fixed by the Committee; (ii) provide for the
purchase or settlement of any such Award by the Company, with or without a
Participant’s request, for an amount of cash equal to the amount which could
have been obtained upon the exercise of such Award or realization of such
Participant’s rights had such Award been currently exercisable or payable; (iii)
make such adjustment to any such Award then outstanding as the Committee deems
appropriate to reflect such Change in Control; or (iv) cause any such Award then
outstanding to be assumed, or new rights substituted therefor, by the acquiring
or surviving corporation in such Change in Control.

    
      
         

      

      
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    ARTICLE
XIII

    Modification,
Extension and Renewal of Awards

    

    Subject to the terms and conditions and
within the limitations of the Plan, the Committee may modify, extend or renew
outstanding Awards and may modify the terms of an outstanding Agreement, may
accept the surrender of outstanding Awards granted under the Plan or outstanding
awards granted under any other equity compensation plan of the Company and
authorize the granting of new Awards pursuant to the Plan in substitution
therefor so long as the new or substituted awards are not of a different type
(with Options and SARs being one type and thus not eligible to be exchanged for
any Award other than Options or SARs), and otherwise the new Awards may specify
a longer term than the surrendered Awards or awards, may provide for more rapid
vesting and exercisability than the surrendered Awards or awards, and may
contain any other provisions that are authorized by the Plan. Notwithstanding
the foregoing, however, no modification of an Award, shall, without the consent
of the Participant, adversely affect the rights or obligations of the
Participant.

    

    Notwithstanding anything to the
contrary in the foregoing other than an adjustment pursuant to Section 4.4
herein, except in connection with a corporate transaction involving the Company
(including, without limitation, any stock dividend, stock split, extraordinary
cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, or exchange of shares), the terms of
outstanding awards may not be amended to reduce the exercise price or Base Value
of outstanding Options or SARs or cancel outstanding Options or SARs in exchange
for cash, other Awards or awards or Options or SARs with an exercise price or
Base Value that is less than exercise price or Base Value of the original
Options or SARs without shareholder approval.

    

     

    ARTICLE
XIV

    Amendment,
Modification and Termination of the Plan

    

    14.1           Amendment, Modification and
Termination.  At any time and from time to time, the Board may
terminate, amend, or modify the Plan. Such amendment or modification may be
without shareholder approval except to the extent that such approval is required
by the Code, pursuant to the rules under Section 16 of the Exchange Act, by any
national securities exchange or system on which the Stock is then listed or
reported, by any regulatory body having jurisdiction with respect thereto or
under any other applicable laws, rules or
regulations.  Notwithstanding the foregoing, the Plan shall not be
amended to permit the actions prohibited by the last paragraph of Article XIII
without shareholder approval.

    

    14.2           Awards Previously
Granted.  No termination, amendment or modification of the Plan
herein shall in any manner adversely affect any Award theretofore granted under
the Plan, without the written consent of the Participant.

    
      
         

      

      
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    ARTICLE
XV

    Withholding

    

    15.1           Tax
Withholding.  The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy Federal, State and local taxes (including the
Participant’s FICA obligation) required by law to be withheld with respect to
any grant, exercise, or payment made under or as a result of the Plan or any
Agreement.

    

    15.2           Stock
Withholding.  With respect to withholding required upon the
exercise of Non-Qualified Stock Options, or upon the lapse of restrictions on
Restricted Stock, or upon the occurrence of any other taxable event with respect
to any Award, Participants may elect, subject to the approval of the Committee,
or the Committee may require Participants to satisfy the withholding
requirement, in whole or in part, by having the Company withhold Shares of Stock
having a Fair Market Value equal to the amount required to be withheld. The
value of the Shares to be withheld shall be based on the Fair Market Value of
the Shares on the date that the amount of tax to be withheld is to be
determined. All elections by Participants shall be irrevocable and be made in
writing and in such manner as determined by the Committee in advance of the day
that the transaction becomes taxable.

    

    ARTICLE
XVI

    Successors

    

    All obligations of the Company under
the Plan, with respect to Awards granted hereunder, shall be binding on any
successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation or otherwise, of all or
substantially all of the business and/or assets of the Company.

     

    ARTICLE
XVII

    General

    

    17.1           Requirements of
Law.  The granting of Awards and the issuance of Shares of
Stock under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or
self-regulatory organizations as may be required.

    

    17.2           Effect of the
Plan.  The establishment of the Plan shall not confer upon any
Member, Non-Employee Service Provider or Non-Employee Director any legal or
equitable right against the Company, a Subsidiary or the Committee, except as
expressly provided in the Plan. The Plan does not constitute an inducement or
consideration for the employment or service of any Member, Non-Employee Service
Provider or Non-Employee Director, nor is it a contract between the Company or
any of its Subsidiaries and any Member, Non-Employee Service Provider or
Non-Employee Director. Participation in the Plan shall not give any Member,
Non-Employee Service Provider or Non-Employee Director any right to be retained
in the service of the Company or any of its Subsidiaries. Except as may be
otherwise expressly provide in the Plan

    
      
         

      

      
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    or in an
Agreement, no Member, Non-Employee Service Provider or Non-Employee Director who
receives an Award shall have rights as a shareholder of the Company prior to the
date Shares are issued to the Participant pursuant to the Plan, regardless of
whether such Shares are held in book entry or electronic form or in certificated
form.

    

    17.3           Creditors.  The
interests of any Participant under the Plan or any Agreement are not subject to
the claims of creditors and may not, in any way, be assigned, alienated or
encumbered.

    

    17.4           Governing Law.  The
Plan, and all Agreements hereunder, shall be governed, construed and
administered in accordance with and governed by the laws of the State of
Delaware and applicable federal law. The Committee may provide that any dispute
as to any Award shall be presented and determined in such forum as the Committee
may specify, including through binding arbitration. Any reference in this Plan
or in an Agreement evidencing any Award to a provision of law or to a rule or
regulation shall be deemed to include any successor law, rule or regulation of
similar effect or applicability.

    

    17.5           Conflicts between the Plan and an
Agreement.  In the event of a conflict between the Plan and an
Agreement, the terms of the Plan shall control.

    

    17.6           Severability.  In
the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provision had not been included.

    

    17.7           Unfunded Status of
Plan.  The Plan is intended to constitute an “unfunded” plan
for incentive and deferred compensation. With respect to any payments as to
which a Participant has a fixed and vested interest but which are not yet made
to a Participant by the Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general unsecured
creditor of the Company.

    

    17.8           Transferability.  Except
for family transfers authorized in this Section (but only if the Agreement
evidencing an Award, or an amendment thereto authorized by the Committee,
expressly states that it is transferable as provided herein), no Award granted
under the Plan, nor any interest in such Award, may be sold, assigned, conveyed,
gifted, pledged, hypothecated or otherwise transferred in any manner, other than
by will or the laws of descent and distribution, prior to the vesting or lapse
of any and all restrictions applicable to any Shares issued under an Award. The
Committee may in its sole discretion grant an Award (other than an ISO) or amend
an outstanding Award (other than an ISO) to provide that the Award is
transferable or assignable to a member or members of the Participant’s
“immediate family,” as such term is defined under Exchange Act Rule 16a-l(e), or
to a trust for the benefit solely of a member or members of the Participant’s
immediate family, or to a partnership or other entity whose only owners are
members of the Participant’s family; provided that following any such transfer
or assignment the Award will remain subject to substantially the same terms
applicable to the Award while held by the Participant, as modified as the
Committee in its sole discretion shall determine appropriate, and the
Participant shall execute an agreement agreeing to be bound by such
terms.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    17.9           Termination of Employment or
Service.  Unless otherwise provided in the Agreement pertaining
to an Award, in the event that a Participant terminates his employment or
service with the Company and its Subsidiaries for any reason, then the unvested
portion of such Award shall automatically be forfeited to, and be acquired at no
cost by, the Company. Unless otherwise provided in the Agreement pertaining to
an Award, in determining cessation of employment or service, transfers between
the Company and/or any Subsidiary shall be disregarded, and changes in status
between that of a Member, a Non-Employee Service Provider and a Non-Employee
Director shall be disregarded. The Committee may provide in an Agreement made
under the Plan for vesting of Awards in connection with the termination of a
Participant’s employment or service on such basis as it deems appropriate,
including, without limitation, any provisions for vesting at death, disability,
retirement or in connection with a Change in Control with or without the further
consent of the Committee. The Agreements evidencing Awards may contain such
provisions as the Committee may approve with reference to the effect of approved
leaves of absence.

    

    17.10                      Registration and Other Laws And
Regulations.  The Plan, the grant and exercise of Awards
hereunder, and the obligation of the Company to sell, issue or deliver Shares
under such Awards, shall be subject to all applicable federal, state and foreign
laws, rules and regulations and to such approvals by any governmental or
regulatory agency as may be required. The Company shall not be required to
register in a Participant’s name or deliver any Shares prior to the completion
of any registration or qualification of such Shares under any federal, state or
foreign law or any ruling or regulation of any government body which the
Committee shall, in its sole discretion, determine to be necessary or
advisable.

    

    No Option shall be exercisable unless a
registration statement with respect to the Option is effective or the Company
has determined that such registration is unnecessary. Unless the Awards and
Shares covered by the Plan have been registered under the Securities Act of
1933, as amended, or the Company has determined that such registration is
unnecessary, each person receiving an Award and/or Shares pursuant to any Award
may be required by the Company to give a representation in writing that such
person is acquiring such Shares for his or her own account for investment and
not with a view to, or for sale in connection with, the distribution of any
party thereof.

    

    17.11                      Beneficiary
Designation.  Each Participant shall have the right to notify
the Committee in writing in a form acceptable to the Committee of any
designation of a successor in interest (a “Beneficiary”) to receive, if alive,
benefits under the Plan or, if permitted by the Committee, with respect to any
Award in the event of his death. Such designation may be changed from time to
time by notice in writing to the Committee in a form acceptable to the
Committee. If a Participant dies without having designated a Beneficiary, or if
the Beneficiary so designated has predeceased the Participant or cannot be
located by the Committee within one year after the date when the Committee
commenced making a reasonable effort to locate such Beneficiary, then the
executor or the administrator of the Participant’s estate shall be deemed to be
his Beneficiary. Any Beneficiary designation may include multiple, contingent or
successive Beneficiaries and may specify the proportionate distribution to each
Beneficiary. If a Beneficiary shall survive the

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    Participant,
but shall die before the entire benefit payable to such Beneficiary has been
distributed, then absent any other provision by the Participant, the unpaid
amount of such benefit shall be distributed to the estate of the deceased
Beneficiary. If multiple Beneficiaries are designated, absent provisions by the
Participant, those named or the survivors of them shall share equally any
benefits payable under the Plan. Any Beneficiary, including the Participant’s
spouse, shall be entitled to disclaim any benefit otherwise payable to him under
the Plan.

    

    17.12                      Nonqualified Deferred Compensation
Plan Omnibus Provision.  It is intended that any compensation,
benefits or other remuneration which is provided pursuant to or in connection
with the Plan which is considered to be nonqualified deferred compensation
subject to Section 409A of the Code shall be provided and paid in a manner, and
at such time and in such form, as complies with the applicable requirements of
Section 409A of the Code to avoid the unfavorable tax consequences provided
therein for non-compliance. For purposes of
Sections 4.4, 6.5, 7.3, and 8.5 and Articles XII, XIII, and XIV, actions taken
by the Board or the Committee, as applicable, shall be undertaken in a manner
that either (a) will not negatively affect the status of any compensation,
benefits or other remuneration intended to be excepted from treatment as
deferred compensation subject to Section 409A of the Code, or (b) will otherwise
comply with Section 409A of the Code.  The Committee is
authorized to amend any Agreement and to amend or declare void any election by a
Participant as may be determined by it to be necessary or appropriate to
evidence or further evidence required compliance with Section 409A of the
Code.

    

               For purposes of this Plan and the Agreements, unless
otherwise provided in the Agreement, where the Agreement provides nonqualified
deferred compensation subject to Section 409A of the Code, termination of
employment or service will be read to mean a “separation from service” within
the meaning of Section 409A of the Code where it is reasonably anticipated that
no further services would be performed after that date or that the level of bona
fide services Participant would perform after that date (whether as an employee
or independent contractor) would permanently decrease to no more than 20 percent
of the average level of bona fide services performed over the immediately
preceding thirty-six (36)-month period (or if less, the period of the
Participant’s employment or service).

    

               Where an Agreement provides nonqualified deferred
compensation subject to Section 409A of the Code, payments or settlement in
connection with a separation from service payment event will be delayed, to the
extent applicable, until six months after the separation from service or, if
earlier, the Participant’s death, if the Participant is a key employee of a
publicly traded corporation under Section 409A(a)(2)(B)(i) of the Code (the
“409A Deferral Period”).  In the event such payments are otherwise due
to be made in installments or periodically during the 409A Deferral Period, the
payment or settlement which would otherwise have been made in the 409A Deferral
Period shall be accumulated and paid in a lump sum as soon as the 409A Deferral
Period ends, and the balance of the payments shall be made as otherwise
scheduled.  

    

               Where an Agreement provides or may provide nonqualified
deferred compensation subject to Section 409A of the Code, no elective deferral
of payment or settlement of the Award to which the Agreement relates shall be
permitted unless the election deferral provisions therefore are set out in the
Agreement or in another written document authorized by the Committee in
accordance with the election requirements of Section 409A of the
Code.

    
      
         

      

      
        24

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