Document:

Exhibit 10.63

EXHIBIT 10.63

Alpha Natural Resources, Inc. 

(formerly Foundation Coal Holdings, Inc.)

2004 Stock Incentive Plan 

Restricted Stock Unit Award Agreement for employees

This Restricted Stock Unit Award Agreement is dated as of the issue date (the “Issue Date”)
set forth on Exhibit A attached hereto (this “Agreement”), and is between Alpha Natural
Resources, Inc., a Delaware corporation (the “Company”), and the eligible employee to whom the
Committee has made this Award (the “Award Recipient”).

The 2004 Stock Incentive Plan (as amended and restated, the “Plan”) was established to aid the
Company and its Affiliates in recruiting and retaining key employees, directors or consultants of
outstanding ability and to motivate such employees, directors or consultants to exert their best
efforts on behalf of the Company and its Affiliates by providing compensation and incentives
through the granting of Awards. All capitalized terms not otherwise defined in this Agreement have
the same meaning given such capitalized terms in the Plan.

Pursuant to the provisions of the Plan, the Committee has full power and authority to direct
the delivery of this Agreement in the name and on behalf of the Company, and has authorized the
delivery of this Agreement.

Agreement

The parties agree as follows:

Section 1. Issuance of Stock.

(a) Subject and pursuant to all terms and conditions stated in this Agreement and in
the Plan, on the Issue Date, the Company hereby grants to Award Recipient the number of
restricted stock units (the “Units”) for the Company’s common stock, par value $0.01 per
share (the “Common Stock”), set forth on Exhibit A. Except as otherwise provided
herein, the shares of the Company’s Common Stock which vest each year under your Unit Award
will be issued to you on the vesting date or if the vesting date is not a business day, on
the immediately following business day (or as soon as reasonably practicable but in no event
later than the 15th day of the third month following such date), subject to your
satisfaction of all applicable income and employment withholding taxes. For purposes of
this Agreement, the “Shares” of Common Stock to be issued under this Award shall include all
of the shares of Common Stock issued to Award Recipient pursuant to this Agreement plus any
Shares issued with respect to such shares of Common Stock before the Shares are actually
issued under this Award, including, but not limited to, shares of the Company’s capital
stock issued by way of stock dividend or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization.

(b) Notwithstanding the foregoing or any provision of this Agreement or the Plan to the
contrary, the delivery of any vested Shares shall be delayed until six (6) months after
Award Recipient’s Separation from Service to the extent required by Section 409A(a)(2)(B)(i)
as provided under the terms of the Plan.

Restricted Stock Unit Award Agreement

for Employees (Grades 22-30)

 

 

 

Section 2. Vesting; Restriction on Transfer and Forfeiture of Unvested Units.

(a) None of the Units may be sold, transferred, pledged, hypothecated or otherwise
encumbered or disposed of until they have vested in accordance with the terms of this
Section 2 and Exhibit A. Except as set forth in this Section 2, effective after the
close of business on the date Award Recipient experiences a Separation from Service or, if
earlier, the date Award Recipient breaches the confidentiality covenant as described in
Section 10 hereof, any Units that are not vested in accordance with this Section 2 shall be
automatically forfeited to the Company without any further obligation on the part of the
Company.

(b) Except as provided herein, the Units will vest according to the vesting schedule
set forth on Exhibit A. Unless otherwise provided in a Company plan applicable to
Award Recipient or any agreement between the Award Recipient and the Company (or any
Affiliate), if: (i) a Change of Control (as defined below) occurs prior to the end of the
full vesting period and the Award Recipient experiences an involuntary Separation from
Service by the Company and any Affiliate other than for Cause within the 90-day period
immediately preceding, on or within the one (1) year period following such Change of
Control, the Units that have not been previously cancelled and forfeited shall become fully
vested and payable; (ii) Award Recipient experiences a Separation from Service as a result
of Award Recipient’s Normal Retirement (as defined below), any unvested Units shall become
vested upon such Separation from Service; (iii) Award Recipient experiences a Separation
from Service as a result of Permanent Disability (as defined below), death or Early
Retirement (as defined below), any unvested Units will vest based on the ratio of the number
of complete months the Award Recipient is employed or serves with the Company and any
Affiliate during the vesting period to the total number of months in the vesting period;
(iv) Award Recipient experiences an involuntary Separation from Service by the Company and
any Affiliate as a result of the dissolution or liquidation of the Company or the Award
Recipient’s employer, any unvested Units shall vest immediately prior to such dissolution or
liquidation event; or (v) Award Recipient experiences an involuntary Separation from Service
by the Company and any Affiliate other than for Cause (as defined below), then the number of
Units that are vested after the close of business on the date Award Recipient experiences an
involuntary Separation from Service by the Company and any Affiliate shall be calculated as
if Award Recipient had been continuously employed by the Company and any Affiliate for an
additional three months.

(c) For purposes of this Agreement, the following terms shall have the following
meanings:

(i) the term “Change of Control” shall mean (A) any merger, consolidation or
business combination in which the stockholders of the Company immediately prior to
the merger, consolidation or business combination do not own at least a majority of
the outstanding equity interests of the surviving parent entity, (B) the sale of all
or substantially all of the Company’s and its Affiliates’ assets in a single
transaction or a series of related transactions, (C) the acquisition of beneficial
ownership or control of (including, without limitation, power to vote) a majority of
the outstanding Common Stock by any person or entity (including a “group” as defined
by or under Section 13(d)(3) of the Exchange Act), or (D) a contested election of
directors, as a result of which or in connection with which the persons who were
directors of the Company before such election or their nominees cease to constitute
a majority of the Board. Notwithstanding the foregoing or any provision of this
Agreement or the Plan to the contrary, it is intended that the foregoing definition
of Change of Control qualify as a change in the ownership or effective control of a corporation, or a change in
the ownership of a substantial portion of the assets of a corporation, within the
meaning of Treas. Reg. Section 1.409A-3(i)(5), and shall be interpreted and
construed to effectuate such intent;

Restricted Stock Unit Award Agreement

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(ii) the term “Permanent Disability” shall mean the Award Recipient is, by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of
not less than 12 months, receiving income replacement benefits for a period of not
less than three months under an accident and health plan covering employees of the
Award Recipient’s employer;

(iii) the term “Normal Retirement” shall mean (i) the date Award Recipient
reaches the age of 62 with ten (10) Years of Service or (ii) the date Award
Recipient reaches the age of 65;

(iv) the term “Early Retirement” shall mean a combination of age and Years of
Service which equals 80 (for example, an Award Recipient who reaches the age of 50
with thirty (30) Years of Service);

(v) the term “Cause” shall mean “Employer Cause” as set forth in any employment
agreement between the Award Recipient, the Company or any Affiliate or, in the
absence of such an agreement, “Cause” as defined by the Company’s and its
Affiliates’ plans applicable to the Award Recipient or employment policies in effect
at the time of the Award Recipient’s Separation from Service and/or a violation of
the Company’s Code of Business Ethics;

(vi) the term “Separation from Service” shall mean the Award Recipient’s death,
retirement or other termination of Employment or service with the employer
(including all persons treated as a single employer under Sections 414(b) and
414(c)). For purposes hereof, the determination of controlled group members shall
be made pursuant to the provisions of Sections 414(b) and 414(c); provided that the
language “at least 50 percent” shall be used instead of “at least 80 percent” in
each place that it appears in Section 1563(a)(1), (2) and (3) and Treas. Reg.
Section 1.414(c)-2; provided, further, where legitimate business reasons exist
(within the meaning of Treas. Reg. Section 1.409A-1(h)(3)), the language “at least
20 percent” shall be used instead of “at least 80 percent” in each place it appears.
Whether an Award Recipient has experienced a Separation from Service will be
determined based on all of the facts and circumstances in accordance with the
guidance issued under Section 409A and, to the extent not inconsistent therewith,
the terms of the Plan; and

(vii) the term “Years of Service” shall mean the aggregate annual periods of
continuous employment or other service with the Company and any parent, affiliate or
subsidiary of the Company measured from the Award Recipient’s date of hire (or
re-hire) and ending on the date the Award Recipient Separates from Service,
including employment or other service with any affiliates or subsidiaries which
become such after the Issue Date, including any predecessors and any other entities
as approved by the Committee (or its delegatee(s)). An absence or leave approved by
the Company or an Affiliate, to the extent permitted by applicable provisions of the
Code, shall not be considered an interruption of employment or performance of
services for any purpose under this Agreement.

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Section 3. Dividend Equivalent Rights.

Should a regular cash dividend be declared on the Company’s Common Stock at a time when
unissued Shares of such Common Stock are subject to the Award, then the number of Shares at that
time subject to your Award will automatically be increased by an amount determined in accordance
with the following formula, rounded down to the nearest whole share:

X = (A x B)/C, where

	 	X 	= 	the additional number of Shares which will become subject to your Award
by reason of the cash dividend;

	 
	 
	 	A 	= 	the number of unissued Shares subject to this Award as of the record
date for such dividend;

	 
	 
	 	B 	= 	the per Share amount of the cash dividend; and

	 
	 
	 	C 	= 	the closing selling price per Share of the Company’s
Common Stock on the New York Stock Exchange on the payment date of such
dividend.

	 

The additional Shares resulting from such calculation will be subject to the same terms and
conditions (including, without limitation, any applicable vesting requirements and forfeiture
provisions) as the unissued Shares of Common Stock to which they relate under the Award.

Section 4. Investment Representation. Award Recipient hereby acknowledges that the Units and
Shares relating to the Units shall not be sold, transferred, assigned, pledged or hypothecated in
the absence of an effective registration statement for the Shares under the Securities Act of 1933,
as amended (the “Securities Act”), and applicable state securities laws or an applicable exemption
from the registration requirements of the Securities Act and any applicable state securities laws
or as otherwise provided herein or in the Plan. Award Recipient also agrees that the Units and
Shares which Award Recipient acquires pursuant to this Agreement will not be sold or otherwise
disposed of in any manner which would constitute a violation of any applicable securities laws,
whether federal or state.

Section 5. Rights as an Award Recipient. You will not have any stockholder rights, including
voting rights and actual dividend rights, with respect to the shares subject to your Award until
you become the record holder of those shares following their actual issuance to you and your
satisfaction of the applicable withholding taxes.

Section 6. Clawback/Recoupment.

(a) The Committee may, to the extent permitted by governing law, require reimbursement
of any payment of Common Stock received upon the vesting of this Award if the Award
Recipient is an employee of pay grade 22 or higher as of the Issue Date and the Committee
has determined, in its sole discretion, that the Award Recipient engaged in ethical
misconduct in violation of the Company’s Code of Business Ethics, which the Committee
reasonably determines caused material business or reputational harm to the Company and its
Affiliates.

Restricted Stock Unit Award Agreement

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(b) If the Committee reasonably determines that any payment of Common Stock received
upon the vesting of this Award should be reimbursed under subsection (a), then the
Award Recipient shall be required to promptly reimburse the Company in an amount the
Committee reasonably determines to be appropriate, which could equal the full value of the
Common Stock the Award Recipient received hereunder for the three years after its issuance.

(c) In the event the Award Recipient is obligated to reimburse the Company for amounts
under subsection (b), the Company may, at its sole election:

(i) require the Award Recipient to pay the amount in a lump sum within 30 days
of such determination;

(ii) deduct the amount from any other compensation owed to the Award Recipient
(as a condition to acceptance of this Award, the Award Recipient agrees to permit
the deduction provided for by this subsection); or

(iii) a combination of subsections (c)(i) and (c)(ii).

(d) By accepting this Award, the Award Recipient agrees that timely payment to the
Company as set forth in this Section 6 is reasonable and necessary, and that timely payment
to the Company as set forth in this Section 6 is not a penalty, and it does not preclude the
Company from seeking all other remedies that may be available to the Company. The Award
Recipient further acknowledges and agrees that the Award Recipient’s Units shall be
cancelled and forfeited without payment by the Company if the Committee reasonably
determines that the Award Recipient has engaged in the conduct specified under subsection
(a).

Section 7. Taxes and Withholdings. Award Recipient acknowledges that any income for
federal, state or local income tax purposes, including payroll taxes, that the Award Recipient is
required to recognize on account of the vesting of the Units and/or issuance of the Shares to Award
Recipient shall be subject to withholding of tax by the Company. In accordance with administrative
procedures established by the Company, Award Recipient may elect to satisfy Award Recipient’s
minimum statutory withholding tax obligations, if any, on account of the vesting of the Units
and/or issuance of Shares, in one or a combination of the following methods: in cash or by
separate check made payable to the Company and/or by authorizing the Company to withhold from the
Shares to be issued to the Award Recipient a sufficient number of whole Shares distributable in
connection with such Award equal to the applicable minimum statutory withholding tax obligation.
Notwithstanding any provision herein to the contrary, in the event an Award becomes subject to FICA
taxes before the Shares under the Award would otherwise be issued, the Company shall (and without
providing the Award Recipient with an election) issue a sufficient number of whole Shares under
such Award, that does not exceed the applicable minimum statutory withholding tax obligation with
respect to such FICA taxes and any federal, state or local income taxes that may apply as a result
of such accelerated issuance of Shares and the Company shall withhold such Shares to satisfy such
FICA and any related income tax liability; provided, however, that any such accelerated issuance of
Shares shall be made only to the extent permitted under Treasury Regulations section
1.409A-3(j)(4)(vi). In the event Award Recipient does not make such payments when requested or
required, the Company may refuse to issue or cause to be delivered any Shares under this Agreement
or any other incentive plan agreement entered into by Award Recipient and the Company and any
Affiliate until such payment has been made or arrangements for such payment satisfactory to the
Company have been made.

Section 8. No Right to Employment. Neither the Plan nor this Agreement shall be deemed to
give Award Recipient any right to continue to be employed by, or provide services to, the Company
or any Affiliate, nor shall the Plan or the Agreement be deemed to limit in any way the Company’s
or any Affiliate’s right to terminate the employment or services of the Award Recipient at any
time.

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Section 9. Further Assistance. Award Recipient will provide assistance reasonably requested
by the Company and its Affiliates in connection with actions taken by Award Recipient while
employed by the Company and/or its Affiliates, including but not limited to assistance in
connection with any lawsuits or other claims against the Company and/or its Affiliates arising from
events during the period in which Award Recipient was employed by the Company or any Affiliate.

Section 10. Confidentiality. Award Recipient acknowledges that the business of the Company
and its Affiliates is highly competitive and that the Company’s and its Affiliates’ strategies,
methods, books, records, and documents, technical information concerning their products, equipment,
services, and processes, procurement procedures and pricing techniques, the names of and other
information (such as credit and financial data) concerning former, present or prospective customers
and business affiliates, all comprise confidential business information and trade secrets which are
valuable, special, and unique assets which the Company and its Affiliates use in their business to
obtain a competitive advantage over competitors. Award Recipient further acknowledges that
protection of such confidential business information and trade secrets against unauthorized
disclosure and use is of critical importance to the Company and its Affiliates in maintaining their
competitive position. Award Recipient acknowledges that by reason of Award Recipient’s duties to
and association with the Company and its Affiliates, Award Recipient has had and will have access
to and has and will become informed of confidential business information which is a competitive
asset of the Company and its Affiliates. Award Recipient hereby agrees that Award Recipient will
not, at any time, make any unauthorized disclosure of any confidential business information or
trade secrets of the Company and its Affiliates, or make any use thereof, except in the carrying
out of employment responsibilities. Award Recipient shall take all necessary and appropriate steps
to safeguard confidential business information and protect it against disclosure, misappropriation,
misuse, loss and theft. Confidential business information shall not include information in the
public domain (but only if the same becomes part of the public domain through a means other than a
disclosure prohibited hereunder). The above notwithstanding, a disclosure shall not be
unauthorized if (i) it is required by law or by a court of competent jurisdiction or (ii) it is in
connection with any judicial, arbitration, dispute resolution or other legal proceeding in which
Award Recipient’s legal rights and obligations as an employee or under this Agreement are at issue;
provided, however, that Award Recipient shall, to the extent practicable and lawful in any such
events, give prior notice to the Company of Award Recipient’s intent to disclose any such
confidential business information in such context so as to allow the Company and its Affiliates an
opportunity (which Award Recipient will not oppose) to obtain such protective orders or similar
relief with respect thereto as may be deemed appropriate. Any information not specifically related
to the Company and its Affiliates would not be considered confidential to the Company and its
Affiliates. In addition to any other remedy available at law or in equity, in the event of any
breach by Award Recipient of the provisions of this Section 10 which is not waived in writing by
the Company, all vesting of the Units shall cease effective upon the occurrence of the actions or
inactions by Award Recipient constituting a breach by Award Recipient of the provisions of this
Section 10.

Section 11. Binding Effect; No Third Party Beneficiaries. This Agreement shall be binding
upon and inure to the benefit of the Company (including its Affiliates) and Award Recipient and
their respective heirs, representatives, successors and permitted assigns. This Agreement shall
not confer any rights or remedies upon any person other than the Company (including its Affiliates)
and the Award Recipient and their respective heirs, representatives, successors and permitted
assigns. The parties agree that this Agreement shall survive the issuance of the Shares.

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Section 12. Agreement to Abide by Plan; Conflict between Plan and Agreement. The Plan is
hereby incorporated by reference into this Agreement and the Plan is made a part hereof as though
fully set forth in this Agreement. Award Recipient, by acceptance of this Award, (i) represents
that he or she is
familiar with the terms and provisions of the Plan, and (ii) agrees to abide by all of the
terms and conditions of this Agreement, and the Plan. Award Recipient accepts as binding,
conclusive and final all decisions or interpretations of the Committee (or its designee) of the
Plan upon any question arising under the Plan and this Agreement (including, without limitation,
the date of Award Recipient’s Separation from Service). In the event of any conflict between the
Plan and this Agreement, the Plan shall control and this Agreement shall be deemed to be modified
accordingly, except to the extent that the Plan gives the Committee express authority to vary the
terms of the Plan by means of this Agreement, in which case, this Agreement shall govern.

Section 13. Entire Agreement. Except as otherwise provided herein, the Plan and this
Agreement constitute the entire agreement between the parties and supersede any prior
understandings, agreements, or representations by or between the parties, written or oral, to the
extent they relate in any way to the subject matter of this Agreement.

Section 14. Choice of Law. To the extent not superseded by federal law, the laws of the
state of Delaware (without regard to the conflicts laws of Delaware) shall control in all matters
relating to this Agreement and any action relating to this Agreement must be brought in State and
Federal Courts located in the Commonwealth of Virginia.

Section 15. Notice. All notices, requests, demands, claims, and other communications under
this Agreement shall be in writing. Any notice, request, demand, claim, or other communication
under this Agreement shall be deemed duly given if it is sent by registered or certified mail,
return receipt requested, postage prepaid, and addressed to the intended recipient and, if to the
Company, at its address provided in Section 19 and, if to the Award Recipient, the Award
Recipient’s most recent address set forth in the Company’s and its Affiliates’ records. Either
party to this Agreement may send any notice, request, demand, claim, or other communication under
this Agreement to the intended recipient at such address using any other means (including personal
delivery, expedited courier, messenger service, telecopy, ordinary mail, or electronic mail), but
no such notice, request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Either party to this
Agreement may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other party notice in the manner set
forth in this Section.

Section 16. Amendments. This Agreement may be amended or modified at any time by an
instrument in writing signed by the parties hereto, or as otherwise provided under the Plan.
Notwithstanding, the Company may, in its sole discretion and subject to the terms of the Plan,
modify or amend the terms of this Agreement, impose conditions on the timing and effectiveness of
the issuance of the Shares, or take any other action it deems necessary or advisable, to comply
with Section 409A (or, if applicable, to cause this Award to be excepted from Section 409A).

Section 17. Section 409A. This Award is intended to comply with Section 409A (or an
exception thereto) and the regulations promulgated thereunder and shall be construed accordingly.
Notwithstanding, Award Recipient recognizes and acknowledges that Section 409A may impose upon
Award Recipient certain taxes or interest charges for which Award Recipient is and shall remain
solely responsible.

Section 18. Legends. The Company may at any time place legends referencing the provisions of
this Agreement, and any applicable federal or state securities law restrictions on all
certificates, if any, representing the Shares relating to this Award.

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Section 19. Acknowledgments.

(a) By accepting the Units, the Award Recipient acknowledges receipt of a copy of the
Plan and the prospectus relating to the Units, and agrees to be bound by the terms and
conditions set forth in the Plan and this Agreement, as in effect and/or amended from time
to time.

(b) The Plan and related documents, which may include but do not necessarily include
the Plan prospectus, this Agreement and financial reports of the Company, may be delivered
to you electronically. Such means of delivery may include but do not necessarily include
the delivery of a link to a Company intranet site or the internet site of a third party
involved in administering the Plan, the delivery of the documents via e-mail or CD-ROM or
such other delivery determined at the Committee’s or its designee’s discretion. Both
Internet Email and the World Wide Web are required in order to access documents
electronically.

(c) Award Recipient acknowledges that, by receipt of this Award, Award Recipient has
read this Section 19 and consents to the electronic delivery of the Plan and related
documents, as described in this Section 19. Award Recipient acknowledges that Award
Recipient may receive from the Company a paper copy of any documents delivered
electronically at no cost if Award Recipient contacts the Senior Vice President of Human
Resources of the Company by telephone at (276) 619-4410 or by mail to One Alpha Place, P.O.
Box 2345, Abingdon, VA 24212. Award Recipient further acknowledges that Award Recipient
will be provided with a paper copy of any documents delivered electronically if electronic
delivery fails.

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Restricted Stock Unit Award Agreement

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of this                     , 2010.

	 	 	 	 	 
	ALPHA NATURAL RESOURCES, INC.

 	 
	By  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

Address:

Alpha Natural Resources, Inc.

One Alpha Place

P.O. Box 2345

Abingdon, VA 24212

Attn: Senior Vice President of Human Resources

AWARD RECIPIENT

 

Restricted Stock Unit Award Agreement

for Employees (Grades 22-30)

 

 

 

EXHIBIT A

	 	 	 
	Name of Award Recipient:
	 	 
	 
	 	 
	Number of Units:
	 	 
	 
	 	 
	Issue Date:
	 	 
	 
	 	 
	Vesting Period/Schedule:

	 	Except as otherwise provided in the
Agreement, the Units will vest in
three equal annual installments
beginning on the one-year anniversary
of the Issue Date.

Restricted Stock Unit Award Agreement

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10Exhibit 10.67

EXHIBIT 10.67

Alpha Natural Resources, Inc.

(formerly Foundation Coal Holdings, Inc.)

2004 Stock Incentive Plan

PERFORMANCE SHARE UNIT AWARD AGREEMENT FOR EMPLOYEES

This Performance Share Unit Award Agreement set forth below (this “Agreement”) is dated as of
the grant date (the “Grant Date”) set forth on Exhibit A and is between Alpha Natural
Resources, Inc., a Delaware corporation (the “Company”), and the eligible employee to whom the
Committee has made this performance Award (the “Award Recipient”).

The 2004 Stock Incentive Plan (as amended and restated, the “Plan”) was established to aid the
Company and its Affiliates in recruiting and retaining key employees, directors or consultants of
outstanding ability and to motivate such employees, directors or consultants to exert their best
efforts on behalf of the Company and its Affiliates by providing compensation and incentives
through the granting of Awards. All capitalized terms not otherwise defined in this Agreement have
the same meaning given such capitalized terms in the Plan.

Pursuant to the provisions of the Plan, the Committee has full power and authority to direct
the delivery of this Agreement in the name and on behalf of the Company, and has authorized the
delivery of this Agreement.

Agreement

The parties agree as follows:

Section 1. Performance Share Unit Award. Subject to and pursuant to all terms and conditions
stated in this Agreement and in the Plan, as of the Grant Date, the Company hereby makes an Award
to Award Recipient in the form of performance share units (“Performance Share Units”). Each
Performance Share Unit awarded under this Agreement shall represent a right to receive one Share of
the Company’s Common Stock, par value $0.01 per share (the “Common Stock”), to the extent such
Performance Share Unit is earned pursuant to the terms of this Agreement. The shares of Common
Stock to be issued and delivered to Award Recipient, if any, pursuant to the Performance Share
Units awarded under this Agreement, including shares of capital stock, if any, issued from time to
time with respect to such shares of Common Stock as a result of a stock dividend or stock split or
in connection with a combination of shares, recapitalization, merger, consolidation or other
reorganization are referred to in this Agreement as the “Share(s).”

Section 2. Performance Share Units. The target number of Performance Share Units covered by
and subject to the terms of this Agreement (the “Target Award”) is set forth on Exhibit A.

Section 3. Performance Period. The “Performance Period” means the performance period as set
forth on Exhibit A.

Section 4. Performance Measures. Subject to the provisions of this Agreement, the Company
shall issue and deliver to the Award Recipient one (1) Share for each whole Performance Share Unit
that is earned in accordance with the performance measures set forth on Exhibit A;
provided, however, that the Committee may reduce the number of Performance Share Units earned under
this Award, but in no
event may the Committee increase the number of Performance Share Units earned under this Award
beyond the performance levels achieved.

Performance Share Unit Award Agreement

for Employees (Grades 22-30)

 

 

Section 5. Delivery of Shares. Except as otherwise provided in this Agreement and subject to
satisfaction of the applicable tax withholding requirements set forth in Section 9, the Company
shall cause stock certificate(s) or other evidence of ownership representing the number of Shares
earned and determined under Section 4 to be delivered to the Award Recipient in the first calendar
year immediately following the end of the Performance Period on or before March 15th of such
calendar year; provided, however, that: (i) except as provided below, no certificate(s) for, or
other evidence of ownership of, Shares shall be delivered with respect to Performance Share Units
unless the Committee has certified in writing that the applicable performance targets set forth on
Exhibit A and other material terms of this Agreement have been achieved; and (ii) the
Company shall not deliver stock certificate(s) or other evidence of ownership representing Shares
if the Committee or other authorized agent determines, in its or his sole discretion, that the
delivery of such certificate(s) or other evidence of ownership would violate the terms of the Plan,
this Agreement or applicable law.

Section 6. Separation from Service.

(a) Except as set forth in this Section 6 or as otherwise provided in a Company plan
applicable to Award Recipient or any agreement between the Award Recipient and the Company (or any
Affiliate), if (i) Award Recipient Separates from Service for any reason prior to the end of the
Performance Period, or (ii) Award Recipient breaches the confidentiality covenant as described in
Section 12, then effective at the close of business on the date the Award Recipient Separates from
Service, or the date the Award Recipient breaches the confidentiality covenant as described in
Section 12 hereof, as applicable, all of Award Recipient’s Performance Share Units covered by this
Agreement, whether earned or unearned, shall be automatically cancelled and forfeited in their
entirety without any further obligation on the part of the Company, such that the Company shall not
be obligated to issue any Shares or any other compensation to Award Recipient with respect to such
cancelled and forfeited Performance Share Units.

(b) Unless otherwise provided in a Company plan applicable to Award Recipient or any
agreement between the Award Recipient and the Company (or any Affiliate), if during the Performance
Period (i) the Award Recipient Separates from Service as a result of Award Recipient’s Permanent
Disability (as defined below) or death, (ii) the Award Recipient experiences an involuntary
Separation from Service by the Company and any Affiliate other than for Cause (as defined below),
or (iii) the Award Recipient Separates from Service as a result of Award Recipient’s Retirement (as
defined below), the Award Recipient shall be entitled to receive a prorated portion of the
Performance Share Units to the extent earned pursuant to Section 4 above, determined at the end of
the Performance Period and based on the ratio of the number of complete months the Award Recipient
is employed or serves during the Performance Period to the total number of months in the
Performance Period. Any Shares to which Award Recipient becomes entitled to receive pursuant to
the preceding sentence will be issued and delivered to Award Recipient in accordance with the
provisions of Section 5 of the Agreement; provided, that any payments due on the Award Recipient’s
death shall be paid to the Award Recipient’s estate.

(c) Unless otherwise provided in a Company plan applicable to Award Recipient or any
agreement between the Award Recipient and the Company (or any Affiliate), in the event that a
Change of Control occurs prior to the end of the Performance Period and the Award Recipient
experiences an involuntary Separation from Service by the Company and any Affiliate other than for
Cause (i) within the 90-day period immediately preceding a Change of Control, or (ii) prior to the
end of the Performance Period and on or within the one (1) year period following such Change of
Control, the Performance Share Units that have not been previously cancelled and forfeited shall
become fully vested and payable at the

Performance Share Unit Award Agreement

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Target Award level (and the Performance Period shall thereafter be deemed to have terminated).
Any Shares to which Award Recipient becomes entitled to receive pursuant to the preceding sentence
will be issued and delivered to Award Recipient contemporaneous with the consummation of the Change
of Control or, if later, on or before the sixtieth (60th) day following the Award Recipient’s
Separation from Service (but, in each case, within the short-term deferral exception as specified
in Treas. Reg. § 1.409A-1(b)(4)).

(d) For purposes of this Agreement and unless otherwise defined in a Company plan
applicable to Award Recipient or an agreement between the Award Recipient and the Company, if any,
the following terms shall have the following meanings: (i) a “Change of Control” shall mean (A)
any merger, consolidation or business combination in which the stockholders of the Company
immediately prior to the merger, consolidation or business combination do not own at least a
majority of the outstanding equity interests of the surviving parent entity, (B) the sale of all or
substantially all of the Company’s and its Affiliates’ assets in a single transaction or a series
of related transactions, (C) the acquisition of beneficial ownership or control of (including,
without limitation, power to vote) a majority of the outstanding Common Stock by any person or
entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange Act), (D) the
stockholders of the Company approve any plan for the dissolution or liquidation of the Company, or
(E) a contested election of directors, as a result of which or in connection with which the persons
who were directors of the Company before such election or their nominees cease to constitute a
majority of the Board; (ii) the term “Permanent Disability” shall mean Award Recipient’s physical
or mental incapacity to perform his or her usual duties with such condition likely to remain
continuously and permanently as determined by the Company and/or its Affiliates; (iii) the term
“Cause” shall mean “Employer Cause” as set forth in any employment agreement between the Award
Recipient and the Company and/or its Affiliates or, in the absence of such an agreement, “Cause” as
defined by the Company’s employment policies in effect at the time of Separation from Service; (iv)
the term “Retirement” shall mean (A) the date Award Recipient reaches the age of 62 with ten (10)
Years of Service, (B) the date the Award Recipient reaches the age of 65 or (C) a combination of
age and Years of Service which equals 80 (for example, an Award Recipient who reaches the age of 50
with thirty (30) Years of Service); (v) the term “Years of Service” shall mean the aggregate annual
periods of continuous employment or other service with the Company and any parent, affiliate or
subsidiary of the Company measured from the Award Recipient’s date of hire (or re-hire) and ending
on the date the Award Recipient Separates from Service, including employment or other service with
any affiliates or subsidiaries which become such after the Grant Date, including any predecessors
and any other entities for this purpose as approved by the Committee (or its delegatee(s)), and
provided that an absence or leave approved by the Company or an Affiliate, to the extent permitted
by applicable provisions of the Code, shall not be considered an interruption of employment or
performance of services for any purpose under this Agreement; and (vi) the term “Separation from
Service” or “Separates from Service” shall mean the Award Recipient’s death, retirement or other
termination of employment or service with the employer (including all persons treated as a single
employer under Sections 414(b) and 414(c)). For purposes hereof, the determination of controlled
group members shall be made pursuant to the provisions of Sections 414(b) and 414(c); provided that
the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place
that it appears in Section 1563(a)(1), (2) and (3) and Treas. Reg. Section 1.414(c)-2; provided,
further, where legitimate business reasons exist (within the meaning of Treas. Reg. Section
1.409A-1(h)(3)), the language “at least 20 percent” shall be used instead of “at least 80 percent”
in each place it appears. Whether an Award Recipient has experienced a Separation from Service
will be determined based on all of the facts and circumstances in accordance with the guidance
issued under Section 409A and, to the extent not inconsistent therewith, the terms of the Plan.

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Section 7. Clawback/Recoupment.

(a) The Committee may, to the extent permitted by governing law, require reimbursement of any
payment of Shares received in settlement of this Award if the Award Recipient is an employee of pay
grade 22 or higher as of the Grant Date where: (i) the payment was predicated upon the achievement
of certain financial results that were subsequently the subject of a restatement of the Company’s
financial statements filed with the Securities and Exchange Commission, which restatement occurs no
more than three years from the date of settlement of this Award, where the Committee reasonably
determines that any employee engaged in intentional misconduct that caused or partially caused the
need for the restatement, and a lower payment would have been made to the Award Recipient based
upon the restated financial results; provided, however, that the Committee reserves the discretion
to determine that any Award Recipient shall not be subject to this provision; or (ii) the Award
Recipient engaged in ethical misconduct in violation of the Company’s Code of Business Ethics,
which the Committee reasonably determines caused material business or reputational harm to the
Company and/or its Affiliates.

(b) If the Committee reasonably determines that any payment of Shares received in settlement
of this Award should be reimbursed under subsections (a)(i) or (a)(ii), then the following shall
apply: (i) in the event reimbursement is required under subsection (a)(i), the Award Recipient
shall be required to reimburse the Company in an amount equal to the dollar value of the Common
Stock the Award Recipient received in excess of what the Award Recipient would have received on
such date had the payment been based upon such restated financial results; or (ii) in the event
reimbursement is required under subsection (a)(ii), the Award Recipient shall be required to
promptly reimburse the Company in an amount the Committee reasonably determines to be appropriate,
which could equal the full value of the Common Stock the Award Recipient received during such
three-year period. Notwithstanding the foregoing, the Company shall not be required to make any
additional payment in the event that the restated financial results would have resulted in a
greater number of Shares upon payment of the Award to the Award Recipient.

(c) In the event the Award Recipient is obligated to reimburse the Company for amounts under
subsections (b)(i) or (b)(ii), the Company may, at its sole election: (i) require the Award
Recipient to pay the amount in a lump sum within 30 days of such determination; (ii) deduct the
amount from any other compensation owed to the Award Recipient (as a condition to receiving the
performance-based compensation under this Award, the Award Recipient agrees to permit the deduction
provided for by this subsection); or (iii) a combination of subsections (c)(i) and (c)(ii).

(d) By accepting this Award, the Award Recipient agrees that timely payment to the Company as
set forth in this Section 7 is reasonable and necessary, and that timely payment to the Company as
set forth in this Section 7 is not a penalty, and it does not preclude the Company from seeking all
other remedies that may be available to the Company. The Award Recipient further acknowledges and
agrees that the Award Recipient’s Performance Share Units shall be cancelled and forfeited without
payment by the Company if the Committee reasonably determines that the Award Recipient has engaged
in the conduct specified under subsection (a).

Section 8. Limitation of Rights; Investment Representation. Except as otherwise provided in
the Plan or this Agreement, no holder of Performance Share Units shall be, or have any of the
rights or privileges of, a stockholder of the Company with respect to any Shares unless and until
certificates or other evidence of ownership representing such Shares shall have been issued or
reflected in such person’s name. Prior to actual receipt of the Shares under this Award, Award
Recipient may not transfer any interest in the Award or the underlying Shares. Award Recipient
acknowledges and agrees that the Shares which Award Recipient acquires pursuant to this Agreement,
if any, shall not be sold, transferred, assigned, pledged or hypothecated in the absence of an
effective registration statement for the Shares under the Securities Act of 1933, as amended (the
“Securities Act”), and applicable state securities laws

Performance Share Unit Award Agreement

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or an applicable exemption from the registration requirements of the Securities Act and any
applicable state securities laws, and shall not be sold or otherwise disposed of in any manner
which would constitute a violation of any applicable securities laws, whether federal or state. Any
attempt to transfer the Performance Share Units or Shares in violation of this Section or the Plan
shall render this Award of Performance Share Units null and void.

Section 9. Income Taxes. Award Recipient acknowledges that any income for federal, state or
local income tax purposes that Award Recipient is required to recognize on account of the issuance
and delivery of Shares to Award Recipient shall be subject to withholding of tax by the Company.
In accordance with administrative procedures established by the Company, Award Recipient may elect
to satisfy his or her minimum statutory withholding tax obligations, if any, on account of the
issuance of Shares or settlement of this Award in one or a combination of the following methods: in
cash or separate check made payable to the Company or by authorizing the Company to withhold from
the Shares to be issued to the Award Recipient hereunder a sufficient number of whole Shares
distributable in connection with this Award equal to the applicable minimum statutory withholding
tax obligation. In the event Award Recipient does not make such payment when requested, the Company
may refuse to issue or cause to be delivered any Shares under this Agreement or any other incentive
plan agreement entered into by Award Recipient and the Company until such payment has been made or
arrangements for such payment satisfactory to the Company have been made.

Section 10. Rights to Continued Employment. Neither the Plan nor this Agreement shall be
deemed to give Award Recipient any right to continue to be employed by, or provide services to, the
Company or any Affiliate, nor shall the Plan or the Agreement be deemed to limit in any way the
Company’s and/or any Affiliate’s right to terminate the employment or service of the Award
Recipient at any time.

Section 11. Further Assistance. Award Recipient will provide assistance reasonably requested
by the Company and its Affiliates in connection with actions taken by Award Recipient while
employed by the Company and/or its Affiliates, including, but not limited to, assistance in
connection with any lawsuits or other claims against the Company and/or its Affiliates arising from
events during the period in which Award Recipient was employed by the Company or any Affiliate.

Section 12. Confidentiality. Award Recipient acknowledges that the business of the Company
and its Affiliates is highly competitive and that the Company’s and its Affiliates’ strategies,
methods, books, records, and documents, technical information concerning their products, equipment,
services, and processes, procurement procedures and pricing techniques, the names of and other
information (such as credit and financial data) concerning former, present or prospective customers
and business affiliates, all comprise confidential business information and trade secrets which are
valuable, special, and unique assets which the Company and its Affiliates use in their business to
obtain a competitive advantage over competitors. Award Recipient further acknowledges that
protection of such confidential business information and trade secrets against unauthorized
disclosure and use is of critical importance to the Company and its Affiliates in maintaining their
competitive position. Award Recipient acknowledges that by reason of Award Recipient’s duties to
and association with the Company and its Affiliates, Award Recipient has had and will have access
to and has and will become informed of confidential business information which is a competitive
asset of the Company and its Affiliates. Award Recipient hereby agrees that Award Recipient will
not, at any time during or after employment, make any unauthorized disclosure of any confidential
business information or trade secrets of the Company and its Affiliates, or make any use thereof,
except in the carrying out of employment responsibilities. Award Recipient shall take all
necessary and appropriate steps to safeguard confidential business information and protect it
against disclosure, misappropriation, misuse, loss and theft. Confidential business information
shall not

Performance Share Unit Award Agreement

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5

 

include information in the public domain (but only if the same becomes part of the public
domain through a means other than a disclosure prohibited hereunder). The above notwithstanding, a
disclosure shall not be unauthorized if (i) it is required by law or by a court of competent
jurisdiction or (ii) it is in connection with any judicial, arbitration, dispute resolution or
other legal proceeding in which Award Recipient’s legal rights and obligations as an employee or
under this Agreement are at issue; provided, however, that Award Recipient shall, to the extent
practicable and lawful in any such events, give prior notice to the Company of Award Recipient’s
intent to disclose any such confidential business information in such context so as to allow the
Company and its Affiliates an opportunity (which Award Recipient will not oppose) to obtain such
protective orders or similar relief with respect thereto as may be deemed appropriate. Any
information not specifically related to the Company and its Affiliates would not be considered
confidential to the Company and its Affiliates. In addition to any other remedy available at law
or in equity, in the event of any breach by Award Recipient of the provisions of this Section 12
which is not waived in writing by the Company and/or its Affiliates, all vesting of the Performance
Share Units shall cease effective upon the occurrence of the actions or inactions by Award
Recipient constituting a breach by Award Recipient of the provisions of this Section 12.

Section 13. Binding Effect; No Third Party Beneficiaries. This Agreement shall be binding
upon and inure to the benefit of the Company (including its Affiliates) and Award Recipient and
their respective heirs, representatives, successors and permitted assigns. This Agreement shall
not confer any rights or remedies upon any person other than the Company (including its Affiliates)
and the Award Recipient and their respective heirs, representatives, successors and permitted
assigns. The parties agree that this Agreement shall survive the issuance of the Shares.

Section 14. Agreement to Abide by Plan; Conflict between Plan and Agreement. The Plan is
hereby incorporated by reference into this Agreement and is made a part hereof as though fully set
forth in this Agreement. Award Recipient, by execution of this Agreement, (i) represents that he
or she is familiar with the terms and provisions of the Plan, and (ii) agrees to abide by all of
the terms and conditions of this Agreement and the Plan. Award Recipient accepts as binding,
conclusive and final all decisions or interpretations of the Committee (or its designee) upon any
question arising under the Plan, this Agreement (including, without limitation, the date of Award
Recipient’s Separation from Service). In the event of any conflict between the Plan and this
Agreement, the Plan shall control and this Agreement shall be deemed to be modified accordingly,
except to the extent that the Plan gives the Committee the express authority to vary the terms of
the Plan by means of this Agreement, in which case, this Agreement shall govern.

Section 15. Entire Agreement. Except as otherwise provided herein, in any Company plan
applicable to the Award Recipient, or in any other agreement between Award Recipient and the
Company (or any Affiliate), this Agreement and the Plan, each of which Award Recipient has reviewed
and accepted in connection with the grant of the Performance Share Units reflected by this
Agreement, constitutes the entire agreement between the parties and supersedes any prior
understandings, agreements, or representations by or between the parties, written or oral, to the
extent they related in any way to the subject matter of this Agreement.

Section 16. Choice of Law. To the extent not superseded by federal law, the laws of the
state of Delaware (without regard to the conflicts laws of Delaware) shall control in all matters
relating to this Agreement and any action relating to this Agreement must be brought in State and
Federal Courts located in the Commonwealth of Virginia.

Performance Share Unit Award Agreement

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Section 17. Notice. All notices, requests, demands, claims, and other communications under
this Agreement shall be in writing. Any notice, request, demand, claim, or other communication
under this
Agreement shall be deemed duly given if (and then two business days after) it is sent by
registered or certified mail, return receipt requested, postage prepaid, and addressed to the
intended recipient and, if to the Company, at its address provided in Section 20, and, if to the
Award Recipient, the Award Recipient’s most recent address set forth in the Company’s and its
Affiliates’ records. Either party to this Agreement may send any notice, request, demand, claim,
or other communication under this Agreement to the intended recipient at such address using any
other means (including personal delivery, expedited courier, messenger service, telecopy, ordinary
mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall
be deemed to have been duly given unless and until it actually is received by the intended
recipient. Either party to this Agreement may change the address to which notices, requests,
demands, claims, and other communications hereunder are to be delivered by giving the other party
notice in the manner set forth in this section.

Section 18. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original but all of which together shall constitute one and the same
instrument.

Section 19. Amendments. This Agreement may be amended or modified at any time by an
instrument in writing signed by the parties hereto, or as otherwise provided under the Plan.
Notwithstanding, the Company may, in its sole discretion and subject to the terms of the Plan,
modify or amend the terms of this Agreement, impose conditions on the timing and effectiveness of
the issuance of the Shares, or take any other action it deems necessary or advisable, to cause this
Award to be excepted from Section 409A of the Code (or to comply therewith to the extent the
Company determines it is not excepted).

Section 20. Acknowledgements.

(a) By accepting this Award of Performance Share Units, the Award Recipient
acknowledges receipt of a copy of the Plan and the prospectus relating to this Award of Performance
Share Units, and agrees to be bound by the terms and conditions set forth in this Agreement and the
Plan, as in effect and/or amended from time to time.

(b) The Plan and related documents, which may include but do not necessarily include
the Plan prospectus, this Agreement and financial reports of the Company, may be delivered to you
electronically. Such means of delivery may include but do not necessarily include the delivery of
a link to a Company intranet site or the internet site of a third party involved in administering
the Plan, the delivery of the documents via e-mail or CD-ROM or such other delivery determined at
the Committee’s or other authorized agent’s discretion. Both Internet Email and the World Wide Web
are required in order to access documents electronically.

(c) This Award is intended to be excepted from coverage under Section 409A of the
Code and the regulations promulgated thereunder and shall be interpreted and construed accordingly.
Notwithstanding, Award Recipient recognizes and acknowledges that Section 409A of the Code may
impose upon the Award Recipient certain taxes or interest charges for which the Award Recipient is
and shall remain solely responsible.

(d) Award Recipient acknowledges that, by receipt of this Award, Award Recipient has
read this Section 20 and consents to the electronic delivery of the Plan and related documents, as
described in this Section 20. Award Recipient acknowledges that Award Recipient may receive from
the Company a paper copy of any documents delivered electronically at no cost if Award Recipient
contacts the Senior Vice President of Human Resources of the Company by telephone at (276) 619-4410
or by
mail to One Alpha Place, P.O. Box 2345, Abingdon, VA 24212. Award Recipient further
acknowledges that Award Recipient will be provided with a paper copy of any documents delivered
electronically if electronic delivery fails.

[Remainder of this Page Intentionally Left Blank]

Performance Share Unit Award Agreement

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of this
 ________, 2010.

	 	 	 	 	 
	ALPHA NATURAL RESOURCES, INC.	 	 
	 
	 	 	 	 
	By

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Address:

Alpha Natural Resources, Inc.

One Alpha Place

P.O. Box 2345

Abingdon, VA 24212

Attn: Senior Vice President of Human Resources

AWARD RECIPIENT

 

Performance Share Unit Award Agreement

for Employees (Grades 22-30)

 

 

EXHIBIT A

Name of Award Recipient:

Target Number of Performance Share Units:

Grant Date:

Performance Period:

Award Metrics

Performance Share Unit Award Agreement

for Employees (Grades 22-30)

 

9

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