Document:

exhibit101.htm

    EXHIBIT 10.1

    EMPLOYMENT AGREEMENT

    AS AMENDED AND
RESTATED

    

    THIS
EMPLOYMENT AGREEMENT (this “Agreement”), effective as of May 25, 2009 (the
“Effective Date”), is made on June 22, 2009 between Massey Energy Company,
a Delaware corporation (the “Company”), and Michael K. Snelling (the
“Executive”) and amends and restates, and replaces, the Employment Agreement
dated May 25, 2009 between the Company and Executive in order to clarify
certain terms and provisions thereof.  This Agreement replaces and
supersedes, as of the Effective Date, the employment agreement between the
Company and the Executive effective as of the May 25, 2006 and amended and
restated on December 23, 2008 (the “Original Agreement”).

    

    WITNESSETH:

    

    WHEREAS,
Executive is a senior executive of the Company or one of its Subsidiaries (as
defined in Section 25) and has made and is expected to continue to make major
contributions to the short-term and long-term profitability, growth and
financial strength of the Company; and

    

    WHEREAS,
the Board of Directors of the Company (the “Board,” as defined in Section 25)
recognized that, as is the case with many publicly held corporations, the
possibility of a Change in Control (as defined in Section 25) exists and
consequently entered into a Change in Control Severance Agreement dated
May 25, 2006 with the Executive, which the Company and the Executive
amended and restated effective January 1, 2009 (the “Change in Control
Agreement”); and

    

    WHEREAS,
the Board has determined that Executive should be provided with certain
employment rights during his continued employment prior to the generally
applicability of the Change in Control Agreement, as well as certain severance
rights in the event his employment ends under circumstances where the Change in
Control Agreement is inapplicable; and

    

    WHEREAS,
the Board has determined that Executive will not be entitled to payments and
benefits under this Agreement and the Change in Control Agreement with respect
to the same set of circumstances and that it is desirable to provide for
appropriate coordination, without duplication, of payment and benefit rights in
the event Executive becomes entitled to payments or benefits pursuant to this
Agreement and at the same time is entitled to payments and benefits under the
Change in Control Agreement; and

    

    WHEREAS,
in consideration of Executive’s continued employment with the Company, the
Company desired to provide Executive with certain compensation and benefits set
forth in this Agreement in order to ameliorate the financial and career impact
on Executive in the event Executive’s employment with the Company is terminated
for certain reasons prior to a Change in Control; and

    

    WHEREAS,
the Company and the Executive now desire to replace the Original Agreement,
effective as of the Effective Date.

    

    NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements hereinafter set forth (including definitions of capitalized terms
which are set forth in Section 25 and throughout this Agreement) and intending
to be legally bound hereby, the Company and Executive agree as
follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    1. Employment.

    

    (a)
Subject to the terms and conditions of this Agreement, the Company agrees to
employ Executive during the term hereof as a senior executive of the
Company or one of its Subsidiaries (as defined in Section 25). In such
capacity, Executive shall report to such person as the President and Chief
Executive Officer of the Company shall determine, and shall have the customary
powers, responsibilities and authorities of executives holding such positions in
corporations of the size, type and nature of the Company or Subsidiary which
employs him, as it exists from time to time, and as are assigned by the
President and Chief Executive Officer of the Company.

    

    (b)
Subject to the terms and conditions of this Agreement, Executive hereby accepts
such employment originally commencing as of the Effective Date and agrees,
subject to any period of vacation and sick leave, to devote his full business
time and efforts to the performance of services, duties and responsibilities in
connection therewith.

    

    2. Term of
Agreement.

    

    (a) Regular
Term.  The term of this Agreement (the “Term”) commenced on the
Effective Date and shall continue until May 25, 2012.

    

    (b) Termination of Agreement
Upon a Change in Control.  Notwithstanding the foregoing, this
Agreement shall automatically terminate if Executive is employed by the Company
or any Subsidiary
(as defined in Section 25) at the time a Change in Control
occurs.

    

    3. Compensation.

    

    (a) Salary. During the Term, the
Company shall pay Executive a base salary (“Base Salary”) at an annual rate of
$340,000 effective as of June 1, 2009  (subject, however, Executive’s
waiver, if any, in effect on the day before the Effective Date of part of his
otherwise payable base salary for certain purposes, which waiver shall remain
effective until revoked). Base Salary shall be payable in accordance with the
ordinary payroll practices of the Company (but no less frequently than monthly).
During the Term, the Board shall, in good faith, review, at least annually,
Executive’s Base Salary in accordance with the Company’s customary procedures
and practices regarding the salaries of senior executives and may, if determined
by the Board to be appropriate, increase, but not decrease, Executive’s Base
Salary following such review. “Base Salary” for all purposes herein shall be
deemed to be a reference to any such increased amount.

    

    (b) Annual Bonus. In addition to
his Base Salary, during the Term, Executive shall be eligible to receive annual
cash bonus awards for fiscal years 2010, 2011 and 2012 of $210,000, which amount
may be increased at the discretion of the Compensation Committee. Each annual
cash bonus award shall be subject to the terms and conditions set forth by the
Compensation Committee of the Board for each fiscal year. Except as provided
herein, the annual cash bonus awards shall be payable to Executive at the time
bonuses are paid to other similarly situated executives of the Company and its
Subsidiaries in accordance with the Company’s policies and practices as set by
the Board.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c) Long-term Incentive Awards.
During the Term, Executive shall be eligible to receive long-term incentive
awards as a Level 2 participant in the Company’s long-term incentive awards
program. The long-term incentive awards shall be subject to the terms and
conditions set forth by the Compensation Committee of the Board for each
long-term incentive period. Except as provided herein, long-term cash incentive
awards shall be payable or shall vest, as the case may be, at the time such
awards are paid or vest for similarly situated executives of the Company and its
Subsidiaries in accordance with the Company’s policies and practices as set by
the Board.

    

    (d) Existing Equity- and Cash-Based
Compensation. Any outstanding agreement made with Executive under the
Company’s long-term cash and equity incentive program, including, stock option,
restricted stock, restricted unit, other equity- or cash-based incentive awards
or other equity- or cash-based incentive agreements as of the Effective Date and
the date hereof (the “Ancillary Documents”) shall remain in full force and
effect and shall not be affected by this Agreement, except as set forth in
Section 6(c). 

    

    (e) Retention Cash Awards.
Retention Cash Awards (as defined in Section 25(g)) shall be payable to
Executive on January 1, 1010, 2011 and 2012, provided he is employed for
the applicable
stated service period and on each such payment date, respectively, set
forth in Section 25(g). 

    

    4. Employee Benefit Programs,
Plans and Practices; Perquisites.

     

    (a)  In
General.  The Company
shall provide Executive while employed hereunder with coverage under such
employee benefit plans (commensurate with his position in the Company and to the
extent permitted under any employee benefit plan) in accordance with the terms
thereof, Directors and Officers insurance policy, which covers claims arising
out of actions or inactions occurring during the Term, in accordance with the
Directors and Officers insurance policy, and other employee benefits which the
Company may make available to other similarly situated executives of the Company
and its Subsidiaries from time to time in its discretion. The Company also shall
provide Executive while employed hereunder with perquisites which the Company
may make available to other similarly situated executives of the Company and its
Subsidiaries from time to time in its discretion. 

     

    (b)  Supplemental
Benefit Plan Participation. Notwithstanding anything to the
contrary in the foregoing, Executive shall be provided participation in the A.
T. Massey, Inc. Supplemental Benefit Plan (the “SERP”), subject to the
following: (i) Executive’s retirement benefit shall be equal to the excess
of (A) the retirement benefit amount to which he would be entitled assuming
he participated in the “Coal Company Plan” component of the Massey Energy
Retirement Plan (the “MERP”), but determined without regard to the limits set
forth in section 401(a)(17) and 415, if applicable, of the Code (as defined in
Section 25), over (B) the actuarial value (as determined pursuant to the
SERP) of his actual MERP benefit; (ii) his SERP benefit shall not become
vested unless he remains an employee of the Company or one of its affiliates
until May 24, 2014; and (iii) any election by Executive to receive his
SERP benefit payment at the later of his “Normal Retirement Date” (as defined in
the SERP) or his “Separation from Service” (as defined in the SERP) shall be
subject to applicable requirements under Section 409A of the Code and shall not
be effective if Executive vests in his SERP benefit earlier
than

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
12 months after he is designated as a
participant in the SERP or after makes his election, whichever occurs
last. 

    

    

    5. Expenses. Subject to
prevailing Company policy or such guidelines as may be established by the Board,
the Company will reimburse Executive for all reasonable expenses incurred by
Executive in carrying out his duties no later than the last day of the year
following the year in which the Executive incurs the reimbursable
expense.

    

    6. Termination of
Employment.

    

    (a) Employment Rights. Executive
and the Company acknowledge that, except as may otherwise be provided under this
Agreement or any other written agreement between Executive and the Company or a
Subsidiary or as set forth in Section 6(b), the employment of Executive by the
Company is “at will” and may be terminated by the Company without further
compensation.  Nothing expressed or implied in this Agreement will
create any right or duty on the part of the Company or Executive to have
Executive remain in the employment of the Company or any Subsidiary.

    

    (b) Termination in a Covered
Termination. Executive shall be entitled to the payments provided in
Section 6(c) on account of a Covered Termination.  A “Covered
Termination” is the severance of Executive’s employment that occurs during the
Term and prior to the occurrence of a Change in Control, under circumstances
where Executive is not entitled to any compensation, payment or benefit under
the Change in Control Agreement and due to either (i) a termination by the
Company other than for Cause (as defined in Section 25) and other than due to
Executive’s death or Disability (as defined in Section 25) or (ii) a
termination by Executive for Good Reason (as defined in Section
25).

    

    (c) Payments and Benefits Upon a Covered
Termination. Subject to the provisions of Sections 7, 8 and 9 hereof, in
the event a Covered Termination described in Section 6(b) occurs, the Company
shall pay or provide to Executive on or beginning, as applicable, the first
business day that occurs following sixty (60) days after his Termination Date
(as defined in Section 25):

    

    (i) a
lump sum cash payment equal to Executive’s Base Salary in effect on his
Termination Date from the day following the Termination Date to the end of the
Term, but in no event shall the aggregate amount of such payments exceed 2.5
times Executive’s Base Salary as of the Termination Date;

    

    (ii) a
lump sum cash payment equal to Executive’s Retention Cash Awards (as defined in
Section 25) that are unpaid as of the Termination Date;

    

    (iii) a lump sum cash
payment equal to the sum of (A) any earned annual cash bonus award
for fiscal year 2009, 2010 or 2011 that is unpaid prior to Executive’s
Termination Date (determined without regard to any requirement that Executive
remain employed until the regular payment date therefor) and (B) the following applicable
amount(s) for each of fiscal years 2009, 2010, 2011 and 2012 that has not
ended prior to Executive’s Termination Date:  (I) for
2009, the target annual cash bonus award, (II) for 2010, $200,000,
(III) for 2011, $200,000, and (IV) for 2012, $200,000;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv) a lump sum cash
payment equal to the sum of (A) any earned long-term cash incentive
bonus award for a
long-term performance period that contains, as a last year of
measurement, fiscal year 2009, 2010 or 2011 and that has ended prior to
Executive’s Termination Date that is unpaid as of the Termination Date
(determined without regard to any requirement that Executive remain employed
until the regular payment date therefor) and (B) the following applicable
amount(s):

    

    (I) any and all
target long-term cash incentive bonus awards for each of the long-term
performance periods that contain, as the first year of measurement,
fiscal year 2009 or any earlier year and that contain, as the last year of
measurement 2009, 2010 or 2011 that has not ended prior to Executive’s
Termination Date,
and

    

    (II) if Executive’s
Termination Date occurs in 2012, $75,000;

    

    (v) all
outstanding equity-based awards granted to Executive prior to or during the Term
of this Agreement but prior to the Termination Date, including but not limited
to stock options, restricted stock and restricted units, that otherwise would
vest during the Term of this Agreement, shall automatically be immediately
vested on Executive’s Termination Date; and

    

    (vi) from
the day following the Termination Date to the end of the Term (the “Medical
Coverage Period”), Executive shall continue to receive on a monthly basis the
medical coverage in effect on his Termination Date (or generally comparable
coverage) for himself and, if applicable, his spouse and dependents, as the same
may be changed from time to time for employees generally, as if Executive had
continued in employment during such period; or, as an alternative, the Company
may elect to pay Executive cash in lieu of such coverage in an amount equal to
Executive’s reasonable after-tax cost of continuing comparable coverage, where
such coverage may not be continued by the Company (or where such continuation
would adversely affect the tax status of the plan pursuant to which the coverage
is provided), with any such cash payments to be made in accordance with the
ordinary payroll practices of the Company (not less frequently than monthly) for
employees generally for the period during which such cash payments are to be
provided.

    

    (A) If
Executive does not receive the cash payment described in the preceding sentence,
the Company shall take all commercially reasonable efforts to provide that the Consolidated Omnibus
Budget Reconciliation Act of 1986, as amended (COBRA), health care
continuation coverage period under section 4980B of the Code (as defined in
Section 25) shall commence immediately after the Medical Coverage Period, with
such continuation coverage continuing until the end of applicable COBRA health
care continuation coverage period.

    

    (B) If
Executive would have been eligible for post-retirement medical coverage had he
retired from employment during the Medical Coverage Period, but is not so
eligible as the result of his Covered Termination, then at the conclusion of the
benefit continuation period described in (A) above, the Company shall take all
commercially reasonable efforts to provide Executive on a monthly basis with
additional continued group medical coverage comparable to that which would have
been available to him from time to time under the Company’s post-retirement
medical program, for as long

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     as
such coverage would have been available under such program, or, as an
alternative, the Company may elect to pay Executive cash in lieu of such
coverage in an amount equal to Executive’s reasonable after-tax cost of
continuing comparable coverage, where such coverage may not be continued by the
Company (or where such continuation would adversely affect the tax status of the
plan pursuant to which the coverage is provided), with any such cash payments to
be made in accordance with the ordinary payroll practices of the Company (not
less frequently than monthly) for employees generally for the period during
which such cash payments are to be provided.

    

    Notwithstanding
anything to the contrary herein, in no event shall this Agreement entitle
Executive to receive more than one payment for any award granted to Executive;
if any award is earned or otherwise payable (other than as provided in this
Agreement) but unpaid, any payment with respect to such award pursuant to this
Agreement will be considered a full satisfaction of Executive’s rights with
respect to such award; and if Executive has elected to defer the payment of one
or more, or any portion, of any payment otherwise due to be made without regard
to this Agreement into a nonqualified deferred compensation plan maintained by
the Company or any of its Subsidiaries, then in lieu of payment directly to
Executive, such payment, or the applicable portion thereof, elected to be
deferred shall be paid or credited instead under such nonqualified deferred
compensation plan if and to the extent that payment pursuant to this Agreement
would be considered an impermissible acceleration or change in the time or form
of payment thereof in violation of the requirements of Section 409A of the Code
(as defined in Section 25).

    

    Notwithstanding the
foregoing or any other provision of this Agreement or any Change in Control
Agreement, the Company and Executive explicitly agree that Executive will
not be entitled to payments and benefits under this Agreement and under any
Change in Control Agreement with respect to the same set of circumstances and in
the event Executive becomes entitled to payments or benefits pursuant to this
Agreement and at the same time is entitled to payments and benefits under any
Change in Control Agreement with respect to the same set of circumstances,
Executive shall only be entitled to those payments and benefits under, and only
be subject to the other applicable provisions of, this Agreement or the Change
in Control Agreement (to the total exclusion of the payment and benefit rights
and terms and conditions of the other agreement) based solely on which agreement
provides in the aggregate, on an after-tax basis, the greatest value to
Executive when each agreement’s payments and benefits are reasonably
valued.  Such valuation shall be determined in the sole and absolute
discretion of the Company.

    

    (d) Cessation of Employment on Account
of Disability, Cause or Death. Notwithstanding anything in this Agreement
to the contrary, if Executive’s employment terminates on account of Disability,
Executive shall be entitled only to receive disability benefits under any
disability program maintained by the Company that covers Executive, and
Executive shall not be considered to have incurred a Covered Termination under
this Agreement and shall not receive payments and benefits pursuant to this
Section 6. If Executive’s employment terminates on account of Cause or because
of his death, Executive shall not be considered to have incurred a Covered
Termination under this Agreement and shall not receive payments and benefits
pursuant to this Section 6.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) Beneficiaries. Executive shall
be entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation payable
hereunder following Executive’s death, and may change such election, in either
case by giving the Company written notice thereof. In the event of Executive’s
death or a judicial determination of his incompetence, reference in this
Agreement to Executive shall be deemed, where appropriate, to refer to his
beneficiary, estate or other legal representative. If Executive dies without
having designated a beneficiary, or if the beneficiary so designated has
predeceased Executive or cannot be located by the Company within one year after
the date when the Company commenced making a reasonable effort to locate such
beneficiary, then Executive's surviving spouse, or if none, then Executive's
estate shall be deemed to be his beneficiary.

    

    7. Nonqualified Deferred
Compensation Plan Omnibus Provisions. Notwithstanding any other provision
of this Agreement, it is intended that any payment or benefit which is provided
pursuant to or in connection with this Agreement which is considered to be
nonqualified deferred compensation subject to Section 409A of the Code (as
defined in Section 25) shall be provided and paid in a manner, and at such time,
including without limitation payment and provision of benefits only in
connection with a permissible payment event contained in Section 409A occurs
(e.g., death, disability, separation from service from the Company and its
affiliates as defined for purposes of Section 409A of the Code), 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.  Notwithstanding any other provision of this
Agreement, the Board is authorized to amend this Agreement, to amend any
election made by Executive under this Agreement and/or to delay the payment of
any monies and/or provision of any benefits in such manner as may be determined
by it to be necessary or appropriate to comply, or to evidence or further
evidence required compliance, with Section 409A of the Code (including any
transition or grandfather rules thereunder).  For purposes of this
Agreement, all rights to payments and benefits hereunder shall be treated as
rights to receive a series of separate payments and benefits to the fullest
extent allowed by Section 409A of the Code.  If Executive is a key employee (as
defined in Section 416(i) of the Code without regard to paragraph (5) thereof)
and any of the Company’s stock is publicly traded on an established securities
market or otherwise, then payment of any amount or provision of any
benefit under this Agreement which is considered to be nonqualified deferred
compensation subject to Section 409A of the Code shall be deferred for six (6)
months as required by 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 payments 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.  In the event benefits are
required to be deferred, any such benefit may be provided during the 409A
Deferral Period at Executive’s expense, with Executive having a right to
reimbursement from the Company once the 409A Deferral Period ends, and the
balance of the benefits shall be provided as otherwise scheduled.  For
purposes of this Agreement, severance of employment 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
such date or that the level of bona fide services Executive 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 lesser, the period of Executive’s service).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8. Release.
Notwithstanding the foregoing, no payments shall be made or benefits provided
under Section 6(c) unless Executive executes, and does not revoke, the Company’s
standard written release, substantially in the form as attached hereto as
Appendix A (the “Release”), of any and all claims against the Company and all
related parties with respect to all matters arising out of Executive’s
employment by the Company (other than any claim or entitlement under an employee
benefit, long term cash or equity compensation plan, program, arrangement or
agreement which is due pursuant to the terms of such plan, program, arrangement
or agreement) or a termination thereof. Such Release, with the period for
revoking the same having already expired, must be provided to the Company on or
after, but no later than sixty (60) days following, Executive’s Termination
Date.

    

    9. Covenants Not to Compete and
Not to Solicit; Breach of Agreement Obligations by
Executive.

    

    (a) Covenant Not to Compete. In
the event Executive is entitled to receive payments and benefits under Section
6(c) above, then, for a period of one (1) year following Executive’s Termination
Date, Executive shall not directly or indirectly engage in (whether as an
employee, consultant, proprietor, partner, director or otherwise), or have any
ownership interest in, or participate in a financing, operation, management or
control of, any person, firm, corporation or business that is a Restricted
Business in a Restricted Territory without the prior written consent of the
Board. For this purpose, ownership, whether direct or beneficial, of no more
than 5% of the outstanding securities entitled to vote generally in the election
of directors of a publicly traded corporation shall not constitute a violation
of this provision.

    

    (b) Covenant Not to Solicit. In
the event Executive is entitled to receive payments and benefits under Section
6(c) above, then, for a period of one (1) year following Executive’s Termination
Date, Executive shall not: (i) solicit, encourage or take any other action which
is intended to induce any other employee, any supplier or any customer, of the
Company or any Subsidiary to terminate his employment or relationship with the
Company or any Subsidiary; or (ii) interfere in any manner with the contractual
or employment relationship between the Company and any such employee, supplier
or customer of the Company or any Subsidiary. The foregoing shall not prohibit
Executive or any entity with which Executive may be affiliated from hiring a
former employee of the Company or any Subsidiary; provided, that such hiring
results exclusively from such former employee’s affirmative response to a
general recruitment effort.

    

    (c) Interpretation. The covenants
contained herein are intended to be construed as a series of separate covenants,
one for each of the counties, parishes, towns, cities or states or similar local
governmental or political subdivisions of the Restricted Territory. Except for
geographic coverage, each such separate covenant shall be deemed identical in
terms to the covenant contained in the preceding subsections. If, in any
judicial proceeding, the court shall refuse to enforce any of the separate
covenants (or any part thereof) deemed included in such subsections, then such
unenforceable covenant (or such part) shall be deemed to be eliminated from this
Agreement for the purpose of those proceedings to the extent necessary to permit
the remaining separate covenants (or portions thereof) to be
enforced. 

    

    (d) Remedies for
Breach.  In the event of Executive’s termination of employment,
the Company’s obligations to provide the payments and benefits set forth in
Section 6(c) shall be and are expressly conditioned upon Executive’s covenants
not to compete and not to solicit as provided herein. In the event Executive
breaches his obligations to the Company as provided 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    herein,
the Company’s obligations to provide the payments and benefits set forth in
Section 6(c) shall cease, and Executive shall be obligated to return to the
Company any payments and the value of any benefits previously received by him
pursuant to Section 6(c). In addition, it is recognized that damages in the
event of breach of this Section 9 by Executive would be difficult, if not
impossible, to ascertain, and it is therefore specifically agreed that the
Company, in addition to and without limiting any other remedy or right it may
have, shall have the right to an injunction or other equitable relief in any
court of competent jurisdiction, enjoining any such breach.  The
existence of the express rights to cease or recover payment and the value of
benefits otherwise provided for in Section 6(c) and to obtain an injunction or
other equitable relief shall not preclude the Company from pursuing any other
rights and remedies at law or in equity which it may have.

    

    (e) Definitions. For proposes of
this Section 9, the following terms have the following meanings:

    

    (i)
“Restricted Business” means any business function with a direct competitor of
the Company or any Subsidiary that is substantially similar to the business
function performed by Executive with the Company or any Subsidiary immediately
prior to his Termination Date.

    

    (ii)
“Restricted Territory” means the counties, parishes, towns, cities, or states or
similar governmental or political subdivisions of any country in which the
Company or any Subsidiary operates or does business, inclusive of markets in
which the Company competes with the Restricted Business to sell its
products.

    

    (f) Reasonableness. In the event
that the provisions of this Section 9 shall ever be deemed to exceed the time,
scope or geographic limitations permitted by applicable laws, then such
provisions shall be reformed to the maximum time, scope or geographic
limitations, as the case may be, permitted by applicable laws.

    

    10. Enforcement. Without
limiting the rights of Executive at law or in equity, if the Company fails to
make any payment required to be made or provided hereunder on a timely basis,
the Company will pay interest on the amount or value thereof at an annualized
rate of interest equal to the so-called composite “prime rate” as quoted from
time to time during the relevant period in the Eastern Edition of The Wall Street
Journal. Such interest will be payable as it accrues consistent with the
timing of the related payments or benefits to be provided. Any change in such
prime rate will be effective on and as of the date of such change.

    

    11. Duties upon Termination;
Mitigation Obligation. Upon termination of
employment for any reason, Executive or his estate shall surrender to the
Company all correspondence, letters, files, contracts, mailing lists, customer
lists, advertising materials, ledgers, supplies, equipment, checks, and all
other materials and records of any kind that are the property of the Company or
any of its subsidiaries or affiliates, that may be in Executive’s possession or
under his control, including all copies of any of the foregoing. The Company
hereby acknowledges that it will be difficult and may be impossible for
Executive to find reasonably comparable employment following the Termination
Date. Accordingly, the payment and provision of the severance compensation by
the Company to Executive in accordance with the terms of this Agreement is
hereby acknowledged by the Company to be reasonable, and Executive will not be
required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise, nor will any profits, income,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    earnings
or other benefits from any source whatsoever create any mitigation, offset,
reduction or any other obligation on the part of Executive hereunder or
otherwise.

    

    12. Legal Fees and
Expenses. If
litigation or arbitration is commenced by either party to enforce or interpret
any provision contained in this Agreement, the Company will undertake to
indemnify Executive for his reasonable attorneys' fees and expenses
associated with such
litigation or arbitration if Executive substantially prevails in such litigation
or arbitration or any settlement thereof.  Notwithstanding the
foregoing, if it should appear to Executive that the Company has failed
to comply with any of its obligations under this Agreement or in the event that
the Company or any other person takes or threatens to take any action to declare
this Agreement void or unenforceable, or institutes any litigation or other
action or proceeding designed to deny, or to recover from, Executive the
payments provided or intended to be provided to Executive under Section 6(c) of
this Agreement, the Company will in any event
reimburse Executive for his reasonable attorneys' fees and expenses
incurred in
connection therewith up to $10,000 without regard to the commencement or outcome
of any litigation or arbitration in order for Executive to retain
counsel to advise and
represent Executive in connection with any such interpretation, enforcement or
defense, including without limitation the initiation or defense of any
litigation or other legal action, whether by or against the Company or any
director, officer or employee of the Company, in any jurisdiction.
Notwithstanding any existing or prior attorney-client relationship between the
Company and such counsel, the Company irrevocably consents to Executive’s
entering into an attorney-client relationship with such counsel, and in that
connection, the Company and Executive agree that a confidential relationship
will exist between Executive and such counsel. The first $10,000 of such
expenses will be paid by the Company as soon as administratively feasible after
they are incurred by Executive, and any balance thereof
due to Executive shall be paid within thirty (30) days after any final judgment
or decision or settlement in which Executive substantially
prevails.

    

    13. Confidentiality.
Executive hereby covenants and agrees that, except as specifically requested or
directed by the Company, he will not disclose to any person not employed by the
Company, or use in connection with engaging in competition with the Company, any
confidential or proprietary information (as provided below) of the Company. For
purposes of this Agreement, the term “confidential or proprietary information”
will include all information of any nature and in any form that is owned by the
Company and that is not publicly available (other than by Executive’s breach of
this Section 13) or generally known to persons engaged in businesses similar or
related to those of the Company. Confidential or proprietary information will
include, without limitation, the Company’s financial matters, customers,
employees, industry contracts, strategic business plans, product development (or
other proprietary product data), marketing plans, consulting solutions and
processes, and all other secrets and all other information of a confidential or
proprietary nature which is protected by the Uniform Trade Secrets Act. For
purposes of the preceding two sentences, the term “Company” will also include
any Subsidiary. The foregoing obligations imposed by this Section 13 will not
apply (i) in the course of the business of and for the benefit of the Company,
(ii) if such confidential or proprietary information has become, through no
fault of Executive, generally known to the public, or (iii) if Executive is
required by law to make disclosure (after giving the Company notice and an
opportunity to contest such requirement). In addition, if not otherwise filed by
the Company with the U.S. Securities and Exchange Commission (“SEC”) and
available through public disclosure from the SEC, Executive agrees not to
disclose the terms of this Agreement to anyone, except Executive’s spouse,
attorney and, as necessary, tax/financial advisor, except as may be required by
law. Likewise, the Company agrees that the terms of this Agreement will not be
disclosed except as may be necessary to obtain approval or authorization to
fulfill its obligations hereunder or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    as
required by law. It is expressly understood that any violation of the
confidentiality obligation imposed hereunder constitutes a material breach of
this Agreement.

    

    14. Employment Rights.
Executive and the Company acknowledge that, except as may otherwise be provided
under any other written agreement between Executive and the Company or a
Subsidiary, the employment of Executive by the Company is “at
will.”  Nothing expressed or implied in this Agreement will create any
right or duty on the part of the Company or Executive to have Executive remain
in the employment of the Company or any Subsidiary.

    

    15. Withholding of Taxes.
The Company may withhold from any amounts payable under this Agreement all
federal, state, city or other taxes as the Company is required to withhold
pursuant to any applicable law, regulation or ruling.

    

    16. Successors and Binding
Agreement.

    

    (a) The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation, reorganization or otherwise) to all or substantially all
of the business or assets of the Company, by agreement in form and substance
reasonably satisfactory to Executive, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent the Company would be
required to perform if no such succession had taken place. This Agreement will
be binding upon and inure to the benefit of the Company and any successor to the
Company, including without limitation any persons acquiring directly or
indirectly all or substantially all of the business or assets of the Company
whether by purchase, merger, consolidation, reorganization or otherwise (and
such successor will thereafter be deemed “Company” for the purposes of this
Agreement), but will not otherwise be assignable, transferable or delegable by
the Company.

    

    (b) This
Agreement will inure to the benefit of and be enforceable by Executive’s
personal or legal representatives, executors, administrators, successors, heirs,
distributees and legatees. This Agreement will supersede the provisions of any
employment agreement between Executive and the Company that relate to any matter
that is also the subject of this Agreement, and such provisions in such
employment agreement will be null and void. Except as provided in Section 6(c)
or 7 hereof, the foregoing sentence shall have no impact on any outstanding agreement
made with Executive under the Company’s long-term incentive program, including,
stock option, restricted stock, restricted unit, other equity- or cash-based
incentive awards or other equity- or cash-based agreements at any time in
effect.  

    

    (c) This
Agreement is personal in nature and neither of the parties hereto will, without
the consent of the other, assign, transfer or delegate this Agreement or any
rights or obligations hereunder except as expressly provided in Sections 16(a)
and (b). Without limiting the generality or effect of the foregoing, Executive’s
right to receive payments hereunder will not be assignable, transferable or
delegable, whether by pledge, creation of a security interest, or otherwise,
other than by a transfer by Executive’s will or by the laws of descent and
distribution and, in the event of any attempted assignment or transfer contrary
to this Section 16(c), the Company will have no liability to pay any amount so
attempted to be assigned, transferred or delegated.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    17. Notices. For all
purposes of this Agreement, all communications, including without limitation,
notices, consents, requests or approvals, required or permitted to be given
hereunder will be in writing and will be deemed to have been duly given when
hand delivered or dispatched by electronic facsimile transmission (with receipt
thereof confirmed electronically), or five (5) business days after having been
mailed by United States registered or certified mail, return receipt requested,
postage prepaid, or three (3) business days after having been sent by a
nationally recognized courier service for overnight/next-day delivery, such as
FedEx, UPS, or the United States Postal Service, addressed to the Company (to
the attention of the Secretary of the Company) at its principal executive office
and to Executive at his principal residence, or to such other address as any
party may have furnished to the other in writing and in accordance herewith,
except that notices of changes of address will be effective only upon
receipt.

    

    18. Governing
Law; Dispute Resolution. The validity,
interpretation, construction and performance of this Agreement will be governed
by and construed in accordance with the substantive laws of the State of
Delaware, without giving effect to the principles of conflict of laws of such
State. Any dispute or controversy arising under or in connection with
this Agreement shall be resolved by arbitration in either Richmond, Virginia or
Charleston, West Virginia as so determined by Executive. Three arbitrators shall
be selected, and arbitration shall be conducted, in accordance with the rules of
the American Arbitration Association. Subject to Section 12 hereof, the
arbitrators shall have the discretion to award the cost of arbitration,
arbitrators’ fees and the respective attorneys’ fees of each party between the
parties as they see fit.

    

    19. Validity. If any
provision of this Agreement or the application of any provision hereof to any
person or circumstances is held invalid, unenforceable or otherwise illegal, the
remainder of this Agreement and the application of such provision to any other
person or circumstances will not be affected, and the provision so held to be
invalid, unenforceable or otherwise illegal will be reformed to the extent (and
only to the extent) necessary to make it enforceable, valid or
legal.

    

    20. Amendment;
Modification. This Agreement may only be amended by written agreement of
the parties hereto. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in a
writing signed by Executive and the Company. No waiver by either party hereto at
any time of any breach by the other party hereto or compliance with any
condition or provision of this Agreement to be performed by such other party
will be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. No agreements or representations, oral
or otherwise, expressed or implied with respect to the subject matter hereof
have been made by either party that are not set forth expressly in this
Agreement. 

    

    21. Acknowledgement.
Executive acknowledges that he has signed this Agreement voluntarily and
knowingly in exchange for the consideration described herein, which Executive
acknowledges is adequate and satisfactory to him and which Executive
acknowledges is in addition to any other benefits to which Executive is
otherwise entitled and that Executive has been and is hereby advised in writing
to consult with an attorney prior to signing this Agreement.

    

    22. Miscellaneous.
References to Sections are to references to Sections of this Agreement. Any
reference in this Agreement to a provision of a statute, rule or regulation will
also include any successor provision thereto. Whenever used herein, the
masculine includes the feminine.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    23. Survival.
Notwithstanding any provision of this Agreement to the contrary, the parties’
respective rights and obligations under Sections 6, 7, 8, 9, 10, 11, 12, 13, 16
and 18 will survive any termination or expiration of this Agreement or the
termination of Executive’s employment for any reason whatsoever.

    

    24. Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original but all of which together will constitute one and the
same agreement.

    

    25. Certain Defined
Terms. In addition to terms defined elsewhere herein, the following terms
have the following meanings when used in this Agreement with initial capital
letters:

    

    (a)
“Board” means the Board of Directors of the Company. If Executive is also a
member of the Board, then in the case of any provision hereof that requires
action by, or a determination of, the Board in connection with this Agreement,
it is understood that such provision refers to the members of the Board other
than Executive. Unless otherwise provided by the Board and except in determining
Cause, the Compensation Committee of the Board shall have full authority to act
on behalf of the Board in connection with any duty or action expressly assigned
under, or implicitly to be acted on in connection with, this Agreement to or by
the Board.

    

    (b)
“Cause” shall occur hereunder only upon:

    

    (i) the
willful and continued failure by Executive substantially to perform his duties
with the Company (other than any such failure resulting from his incapacity due
to physical or mental illness) after a written demand for substantial
performance is delivered to him by the Board which specifically identifies the
manner in which the Board believes that he has not substantially performed his
duties,

    

    (ii)
Executive’s willful breach of fiduciary duty, willful violation of any law,
rule, or regulation (other than traffic violations or similar offenses), willful
violation of a final cease and desist order or willful engaging in other gross
misconduct which is materially and demonstrably injurious to the Company or any
Subsidiary, or

    

    (iii)
Executive’s conviction of, or pleading guilty or nolo contendere to, the
commission of a felony involving fraud, embezzlement, theft or moral
turpitude.

    

    For
purposes of this Section 25(b), no act, or failure to act, on Executive’s part
described in clause (i) or (ii) above shall be considered “willful” unless done,
or omitted to be done, by him not in good faith and without reasonable belief
that his action or omission was in the best interest of the Company and its
Subsidiaries. Notwithstanding the foregoing, Executive shall not be deemed to
have been terminated for Cause unless and until there shall have been delivered
to him a copy of a resolution duly adopted by the affirmative vote of not less
than two-thirds of the entire membership of the Board at a meeting of the Board
called and held for the purpose, among others (after at least twenty (20) days
prior notice to Executive and an opportunity for Executive, together with his
counsel, to be heard before the Board), of finding that (x) in the good faith
opinion of the Board Executive failed to perform his duties or engaged in
misconduct as set forth above in clause (i) or (ii) of this paragraph, and, if
applicable, that Executive did not correct such failure or cease such misconduct
after being requested to do so by the Board, or (y) as set forth in clause (iii)
of this paragraph, Executive has been convicted of or has entered a

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    plea of
nolo contendere to the commission of a felony. The fact that Executive
is or shortly may be “retirement eligible” and thus eligible for or entitled to
post-retirement benefits from any plan, arrangement or program sponsored,
participated in or contributed to by the Company or any Subsidiary shall not
prevent Executive’s termination from being considered termination for
Cause.

    

    (c)
“Change in Control” means the occurrence of any 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.

    

    (d)
“Code” means the Internal Revenue Code of 1986, as amended.

    

    (e)
“Disability” means Executive becomes permanently disabled within the meaning of,
and begins actually to receive long-term disability benefits pursuant to, the
long-term disability plan of the Company or any Subsidiary in effect for, or
applicable to, Executive, or if none, then Executive is determined by the Social
Security Administration to be totally and permanently disabled for purposes of
entitlement to Social Security disability benefits.

    

    (f) “Good
Reason” means one of the following events:

    

    (i) the assignment
to Executive of any duties inconsistent in any respect with Executive’s position
(including status, offices, titles and reporting requirements), authority,
duties or responsibilities in effect immediately on the Effective Date, or any
other action by the Company or any Subsidiary which results in a diminution in
such position, authority, duties or responsibilities, other than an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company or Subsidiary promptly after receipt of notice thereof
given by Executive;

    

    (ii) any failure by
the Company or any Subsidiary to continue Executive’s employment upon the terms
and conditions as existed on the Effective Date (as the same may be increased
from time to time during the Term) other than an isolated, insubstantial and
inadvertent failure not occurring in bad faith and which is remedied by the
Company or Subsidiary promptly after receipt of notice thereof given by
Executive, including but not limited to compensation level and annual and
long-term cash and equity incentive opportunity, but excluding any term or
condition covered in clause (i) above; or

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii) a
material reduction in the level of Employee Benefits provided to Executive on the Effective
Date.

    

    For
purposes hereof, “Employee Benefits” means the perquisites, benefits and service
credit for benefits as provided under any and all employee retirement income and
welfare benefit policies, plans, programs or arrangements in which Executive is
entitled to participate, including, without limitation, any stock option, stock
appreciation, stock purchase, restricted stock, restricted unit, performance
stock, performance unit, shadow stock or similar equity incentive plan, program,
arrangement, savings, pension, supplemental executive retirement, or other
retirement income or welfare benefit, deferred compensation, incentive
compensation, group or other life, health, medical/hospital or other insurance
(whether funded by actual insurance or self-insured by the Company or a
Subsidiary), disability, salary continuation, expense reimbursement and other
employee benefit policies that may exist as of the Effective Date or any
successor policies, plans or arrangements that provide substantially similar
perquisites or benefits.

    

    Without
limiting the generality or effect of the foregoing, Executive shall have no
right to terminate employment for Good Reason in connection with an event
described above unless (x) Executive provides written notice to the Company
within thirty (30) days of the occurrence of such event that identifies such
event with particularity, and (y) the Company fails to correct such event within
ten (10) business days after receipt of such notice from Executive.

    

    In no
event shall the termination of Executive’s employment with the Company on
account of Executive’s death or Disability or because Executive engaged in
conduct constituting Cause be deemed to be a termination for Good
Reason.

    

    (g)
“Retention Cash Awards" means the retention cash awards of $150,000 payable to
Executive on January 1, 2010 for service from the Effective Date through
January 1, 2010, January 1, 2011 for service from January 1, 2010
through January 1, 2011, and January 1, 2012 for service from
January 1, 2011 through January 1, 2012 so
long as Executive has been continuously employed by the Company for the
applicable stated service period and on each such payment date,
respectively.

    

    (h) “Subsidiary” means any
Company affiliate, whether or not incorporated, at least 50% of the
outstanding capital stock or other ownership interests of which is owned,
directly or indirectly, by the Company.

    

    (i)
“Termination Date” means the last day of Executive’s employment with the Company
and all Subsidiaries.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of May 28, 2009.

    

    
      
        
          	 
      	 
      	 
      
	
                  MASSEY
      ENERGY COMPANY

                
	 
      	 
      
	
                  By:

                	 
      	
                  /s/
      Baxter F. Phillips, Jr.

                
	
                  Name:

                	 
      	
                  Baxter
      F. Phillips, Jr.

                
	
                  Title:

                	 
      	
                  President

                
	 
	 /s/ Michael
Snelling
	 
      Michael Snelling
	
                   

                

        

      

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Appendix
A

     

    
       

    

    SEPARATION OF EMPLOYMENT
AGREEMENT AND GENERAL RELEASE

    

    THIS
SEPARATION OF EMPLOYMENT AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made
as of this     
day of                 ,
            ,
by and between Massey Energy Company, a Delaware corporation (the “Company”),
and _______________________ (the “Executive”).

    

    WHEREAS,
Executive formerly was employed by the Company as             ;
and

    

    WHEREAS,
Executive and Company entered into an Employment Agreement, effective as of
May 25, 2009 (the “Employment Agreement”) which provides for certain
payments in the event that Executive’s employment is terminated on account of a
reason set forth in the Employment Agreement; and

    

    WHEREAS,
an express condition of Executive’s entitlement to the payments under the
Employment Agreement is the execution of a general release in the form set forth
below; and

    

    WHEREAS,
Executive and the Company mutually desire to terminate Executive’s employment on
an amicable basis, such termination to be effective             
            ,
            
(“Termination Date”).

    

    NOW,
THEREFORE, IT IS HEREBY AGREED by and between Executive and the Company as
follows:

     

    
      1. (a)
Executive, for and in consideration of the commitments of the Company as set
forth in paragraph 6 of this Agreement, and intending to be legally bound, does
hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates,
subsidiaries and parents, and its officers, directors, employees, and agents,
and its and their respective successors and assigns, heirs, executors, and
administrators (collectively, “Releasees”) from all causes of action, suits,
debts, claims and demands whatsoever in law or in equity, which Executive ever
had, now has, or hereafter may have, whether known or unknown, or which
Executive’s heirs, executors, or administrators may have, by reason of any
matter, cause or thing whatsoever, from the beginning of Executive’s employment
to the date of this Agreement, and particularly, but without limitation of the
foregoing general terms, any claims arising from or relating in any way to
Executive’s employment relationship with the Company, the terms and conditions
of that employment relationship, and the termination of that employment
relationship, including, but not limited to, any claims arising under the Age
Discrimination in Employment Act, the Older Workers Benefit Protection Act,
Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act,
the Family and Medical Leave Act of 1993, the Employee Retirement Income
Security Act of 1974, and any other claims under any federal, state or local
common law, statutory, or regulatory provision, now or hereafter recognized, and
any claims for attorneys’ fees and costs. This Agreement is effective without
regard to the legal nature of the claims raised and without regard to whether
any such claims are based upon tort, equity, implied or express contract or
discrimination of any sort.

      

      (b) To
the fullest extent permitted by law, and subject to the provisions of paragraph
11 below, Executive represents and affirms that (i) [other than             ,] Executive has not filed or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      caused to
be filed on Executive’s behalf any claim for relief against the Company or any
Releasee and, to the best of Executive’s knowledge and belief, no outstanding
claims for relief have been filed or asserted against the Company or any
Releasee on Executive’s behalf; and (ii) [other than             ,] Executive has not reported
any improper, unethical or illegal conduct or activities to any supervisor,
manager, department head, human resources representative, agent or other
representative of the Company, to any member of the Company’s legal or
compliance departments, or to the ethics hotline, and has no knowledge of any
such improper, unethical or illegal conduct or activities. Executive agrees to
dismiss with prejudice all claims for relief filed before the date
hereof.

      

      (c)
Notwithstanding any other provision herein, the foregoing release does not apply
to any claim or entitlement under an employee benefit or long term cash or
equity incentive compensation plan, program, arrangement or agreement which is
due pursuant to the terms of such plan, program, arrangement or
agreement.

      

      2. The
Company, for and in consideration of the commitments of Executive as set forth
in this Agreement, and intending to be legally bound, does hereby REMISE,
RELEASE AND FOREVER DISCHARGE Executive from all claims, demands or causes of
action arising out of facts or occurrences prior to the date of this Agreement,
but only to the extent the Company knows or reasonably should know of such facts
or occurrence and only to the extent such claim, demand or cause of action
relates to a violation of applicable law or the performance of Executive’s
duties with the Company; provided, however, that this release of claims shall
not in any case be effective with respect to any claim by the Company alleging a
breach of Executive’s obligations under this Agreement. [Note: The Company and Executive may,
but shall not be required to mutually agree on a case-by-case basis at the time
of the signing of this release to include the foregoing provision, or a
substantially similar provision, to this Agreement.]

      

      3. In
consideration of the Company’s agreements as set forth in paragraph 6 herein,
Executive agrees to comply with the limitations described in Sections 9 and 13
of the Employment Agreement.

      

      4.
Executive further agrees and recognizes that Executive has permanently and
irrevocably severed Executive’s employment relationship with the Company and its
affiliated entities, that Executive shall not seek employment with the Company
or any affiliated entity at any time within two (2) years after his Termination
Date, and that neither the Company nor any affiliated entity has any obligation
to employ him in the future.

      

      5.
Executive further agrees that Executive will not disparage or subvert the
Company, or make any statement reflecting negatively on the Company, its
affiliated entities, or any of their officers, directors, employees, agents or
representatives, including, but not limited to, any matters relating to the
operation or management of the Company, Executive’s employment and the
termination of Executive’s employment, irrespective of the truthfulness or
falsity of such statement.

      

      6. In
consideration for Executive’s agreements as set forth herein, the Company agrees
to pay or provide to or for Executive the payments described in Section 6(c) of
the Employment Agreement, the provisions of which are incorporated herein by
reference. Except as set forth in this Agreement, it is expressly agreed and
understood that Releasees do not have, and will not have, any obligations to
provide Executive at any time in the future with any payments, benefits or
considerations other than those recited in this paragraph, those excluded from
release in Section 1(c) of this Agreement or those

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       required
by law, other than under the terms of any benefit plans which provide benefits
or payments to former employees according to their terms.

      

      7.
Executive understands and agrees that the payments and agreements provided in
this Agreement are being provided to him in consideration for Executive’s
acceptance and execution of, and in reliance upon Executive’s representations
in, this Agreement. Executive acknowledges that if Executive had not executed
this Agreement containing a release of all claims against the Company, Executive
would not have been entitled to the payments set forth in Section 6(c) of the
Employment Agreement.

      

      8.
Executive acknowledges and agrees that the Company previously has satisfied any
and all obligations owed to him under any employment agreement or offer letter
Executive has with the Company and, further, that this Agreement supersedes any
employment agreement or offer letter Executive has with the Company, and any and
all other prior agreements or understandings, whether written or oral, between
the parties which are inconsistent with this Agreement, and further, that,
except as set forth expressly herein, no promises or representations have been
made to him in connection with the termination of Executive’s employment
agreement, if any, or offer letter, if any, with the Company, or the terms of
this Agreement or the Employment Agreement.

      

      9. If not
otherwise filed by the Company with the U.S. Securities and Exchange Commission
(“SEC”) and available through public disclosure from the SEC, Executive agrees
not to disclose the terms of this Agreement or the Employment Agreement to
anyone, except Executive’s spouse, attorney and, as necessary, tax/financial
advisor, except as may be required by law. Likewise, the Company agrees that the
terms of this Agreement will not be disclosed except as may be necessary to
obtain approval or authorization to fulfill its obligations hereunder or as
required by law. It is expressly understood that any violation of the
confidentiality obligation imposed hereunder constitutes a material breach of
this Agreement.

      

      10.
Executive represents that Executive does not presently have in Executive’s
possession any records and business documents, whether on computer or hard copy,
and other materials (including but not limited to computer disks and tapes,
computer programs and software, office keys, correspondence, files, customer
lists, technical information, customer information, pricing information,
business strategies and plans, sales records and all copies thereof)
(collectively, the “Corporate Records”) provided by the Company and/or its
predecessors, subsidiaries or affiliates or obtained as a result of Executive’s
prior employment with the Company and/or its predecessors, subsidiaries or
affiliates, or created by Executive while employed by or rendering services to
the Company and/or its predecessors, subsidiaries or affiliates. Executive
acknowledges that all such Corporate Records are the property of the Company. In
addition, Executive shall promptly return in good condition any and all Company
owned equipment or property, including, but not limited to, automobiles,
personal data assistants, facsimile machines, copy machines, pagers, credit
cards, cellular telephone equipment, business cards, laptops and computers,
unless mutually agreed upon in writing. As of the Termination Date, the Company
will make arrangements to remove, terminate or transfer any and all business
communication lines including network access, cellular phone, fax line and other
business numbers.

      

      11.
Nothing in this Agreement shall prohibit or restrict Executive from: (i) making
any disclosure of information required by law; (ii) providing information to, or
testifying or otherwise assisting in any investigation or proceeding brought by,
any federal regulatory or law enforcement 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      agency or
legislative body, any self-regulatory organization, or the Company’s designated
legal, compliance or human resources officers; or (iii) filing, testifying,
participating in or otherwise assisting in a proceeding relating to an alleged
violation of any federal, state or municipal law relating to fraud, or any rule
or regulation of the Securities and Exchange Commission or any self-regulatory
organization.

      

      12. The
parties agree and acknowledge that the agreement by the Company described
herein, and the settlement and termination of any asserted or unasserted claims
against the Releasees, are not and shall not be construed to be an admission of
any violation of any federal, state or local statute or regulation, or of any
duty owed by any of the Releasees to Executive.

      

      13.
Executive agrees and recognizes that should Executive breach any of the
obligations or covenants set forth in this Agreement, the Company will have no
further obligation to provide Executive with the consideration set forth herein,
and will have the right to seek repayment of all consideration paid up to the
time of any such breach. Further, Executive acknowledges in the event of a
breach of this Agreement, Releasees may seek any and all appropriate relief for
any such breach, including equitable relief and/or money damages, attorneys’
fees and costs.

      

      14.
Executive further agrees that the Company shall be entitled to preliminary and
permanent injunctive relief, without the necessity of proving actual damages, as
well as to an equitable accounting of all earnings, profits and other benefits
arising from any violations of this Agreement, which rights shall be cumulative
and in addition to any other rights or remedies to which the Company may be
entitled.

      

      15. This
Agreement and the obligations of the parties hereunder shall be construed,
interpreted and enforced in accordance with the laws of the State of Delaware,
without giving effect to the principles of conflict of laws of such
State.

      

      16.
Executive certifies and acknowledges as follows:

      

      (a) That
Executive has read the terms of this Agreement, and that Executive understands
its terms and effects, including the fact that, other than as excepted in
paragraph 1 hereof, Executive has agreed to RELEASE AND FOREVER DISCHARGE the
Company and each and every one of its affiliated entities from any legal action
arising out of Executive’s employment relationship with the Company and the
termination of that employment relationship; and

      

      (b) That
Executive has signed this Agreement voluntarily and knowingly in exchange for
the consideration described herein, which Executive acknowledges is adequate and
satisfactory to him and which Executive acknowledges is in addition to any other
payments or benefits to which Executive is otherwise entitled; and

      

      (c) That
Executive has been and is hereby advised in writing to consult with an attorney
prior to signing this Agreement; and

      

      (d) That
Executive does not waive rights or claims that may arise after the date this
Agreement is executed; and

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e) That
the Company has provided him with a period of twenty-one (21)  days within which to
consider this Agreement, and that Executive has signed on the date indicated
below after concluding that this Separation of Employment Agreement and General
Release is satisfactory to him; and

      

      (f)
Executive acknowledges that this Agreement may be revoked by him within seven
(7) days after execution, and it shall not become effective until the expiration
of such seven (7) day revocation period. In the event of a timely revocation by
Executive, this Agreement will be deemed null and void and the Company will have
no obligations hereunder.

      

      Intending
to be legally bound hereby, Executive and the Company executed the foregoing
Separation of Employment Agreement and General Release this             
day of             ,
            .

       

      
        	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	______________________________________________________________ 
      	 
      	 
      	 
      	
                Witness:

              	 
      	_____________________________________________________________ 
      
	
                Executive

              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                MASSEY
      ENERGY COMPANY

              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	 
      	 
      _________________________________________________	 
      	 
      	 
      	
                Witness:

              	 
      	_____________________________________________________________ 
      
	
                Name:

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Title:exhibit_43.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
4.3

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    MASSEY
ENERGY COMPANY

     

    2006
STOCK AND INCENTIVE COMPENSATION PLAN

     

    (As
Amended and Restated Effective May 19, 2009)

     

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    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 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 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).

    

    (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, (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.

    

    (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 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 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, 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 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 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 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.

    

    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.

    

    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:

    

    “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. 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.

    

    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
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 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.

    

     

    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.

    

     

    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 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.

    

    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 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.

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