Document:

Exhibit 10.9

 

WALTER ENERGY

2012 EXECUTIVE PERFORMANCE PROGRAM

UNDER THE EXECUTIVE INCENTIVE PLAN

 

I.                                        The Program

 

The Walter Energy, Inc. 2012 Executive Performance Program, as it may be amended from time to time (the “Program”), under the Walter Energy, Inc. Executive Incentive Plan, as it may be amended from time to time (the “Plan”), is intended to stimulate and reinforce executive actions that support and assure the attainment of key corporate objectives. The Program facilitates these objectives by providing executive employees the opportunity to earn additional cash compensation if the Company attains its financial and operating objectives during the Plan Year and the employee attains required individual performance levels. The terms and provisions of the Plan are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail. All capitalized terms used but not defined herein shall have the meaning ascribed to such term in the Plan.

 

II.                                   Definitions

 

1.                                      Base Salary means an Employee’s annual base salary rate (exclusive of special stipends or interim payments, commissions, overrides, and incentive and other cash and non-cash payments) as of the end of the Plan Year.

 

2.                                      Change in Control means a “change in control” as defined in, and applicable to those Participants who have a change in control agreement or a provision in their employment agreement that relates to the effect of a change in the ownership or control of the Company.

 

3.                                      Committee means the Compensation and Human Resources Committee of the Board, as it is constituted from time to time.

 

4.                                      Corporate Employee or Employees means an Employee or Employees of Walter Energy, Inc.

 

5.                                      Incentive Fund means the fund created in accordance with Section VII of the Program.

 

6.                                      Officer means an executive officer of the Company, any Operating unit President and any Operating unit Vice-President who reports directly to the Operating unit President or who serves on the Operating unit Executive Committee.

 

7.                                      Peer Group means a group of companies that are selected by the Committee for comparison purposes based on set of criteria (e.g., being a direct competitor; the same or similar industry; same or similar size or annual revenues to one or more Subsidiaries or the Company).

 

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8.                                      Performance Goal means the performance goals for the 2012 Plan Year, as more fully described in Section V, and their measures that are designated for all Participants or individual Participants so that, if each is attained at 100%, the Participant could receive the Target Incentive Opportunity for such Participant.

 

9.                                      Operating unit means a wholly owned subsidiary of Walter Energy, Inc. that has been declared by the Committee to be eligible to participate in the Plan and the Program.

 

10.                               Operating unit Employee or Employees means an Employee or Employees of an Operating unit.

 

11.                               Target Incentive Opportunity means additional cash compensation, expressed as a percentage of Base Salary, which may be recommended as an incentive award if all targets are attained at 100%. The actual amount of the award payable hereunder could increase or decrease as more fully described in Section VIII, subject to the terms of the Plan.

 

III.                              Administration

 

1.                                      The Program shall be administered by the Committee.

 

2.                                      The Committee shall have sole and complete authority to make awards under the Program from funds authorized by the Committee in accordance with the terms of the Plan and to adopt; alter and repeal such administrative rules, guidelines and practices governing the operation of the Program, as it shall deem advisable from time to time; and to interpret the terms and provisions of the Program.

 

A majority of the Committee shall constitute a quorum, and the acts of a majority of the members present at any meeting at which a quorum is present, or acts approved in writing by a majority of the Committee without a meeting, shall be the acts of the Committee.

 

3.                                      Nothing in the Plan, the Program or any of the related documents and no representations by the Company, shall be construed as creating a contract, oral or written, that guarantees employment of an individual for any period of time, nor is there created any entitlement to receive an incentive payment except as determined by the Committee. The decisions and determinations of the Committee shall be final, conclusive and binding on all Participants.

 

IV.                               Eligible Participants

 

1.                                      The following Employees of the Company and its Subsidiaries are eligible to participate in the Program.

 

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A.            Officer Group

 

·                  Executive Officers of the Company

 

·                  Operating Unit Presidents

 

·                  Operating Unit Vice-Presidents who report directly to the Operating Unit President or serve on the Operating Unit Executive Committee

 

B.            Corporate and Operating Unit Staff Group

 

·                  Corporate and Operating Unit Employees, including Mine Managers, who hold positions that are equal to or greater than salary grade 9, or the equivalent, under the Company’s job evaluation program.

 

2.                                      Participants in the Program may not take part in any other cash incentive or production bonus plan that is sponsored by the Company or any of its Subsidiaries.

 

3.                                      Participation in the Company’s Employee Stock Purchase Plan is required of all eligible Participants in the Plan and Program to receive an incentive award.

 

V.                                    Performance Goals

 

1.                                      Financial Performance Goals - 60% of a Participant’s incentive opportunity.

 

From time to time in its discretion with respect to a Plan Year, the Committee will establish one or more Financial Performance Goals based on the annual business plan, improvement over the former year, a Peer Group comparison, or such other criteria as it may determine in its discretion. The Financial Performance Goals may include one or more measures, such as: earnings before taxes (EBT); net income (NI); earnings per share (EPS); operating income (OI); return on net assets (RONA), earnings before interest, taxes, depreciation and amortization (EBITDA); earnings before interest and taxes (EBIT); and/or pricing, production volume, production capacity, cost per ton, etc. that reflect the combined results of one or more of the Company’s Subsidiaries. If the Committee designates more than one target, it shall assign relative weights to each target so that the sum of all weighting factors is to equal 1.0.

 

For the 2012 Plan Year, as more fully described in the 2012 Performance Metrics and Design Parameters attached hereto (the “Parameters”), the Committee has designated consolidated net income, production tons and cost per ton as the Financial Performance Goals, with each such goal representing 20% of the weighting for all Participants.

 

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The Committee will have the sole power and authority to review and adjust the Financial Performance Goals during the Plan Year due to unanticipated events, including, but not limited to, windfall gains, disposal of significant assets, catastrophes and other nonrecurring events.

 

2.                                      Safety Performance Goal - 20% of a Participant’s incentive opportunity.

 

As soon as practicable at or near the beginning of the Plan Year, the Committee will establish one or more Safety Performance Goals for each Operating Unit based on each Operating Unit’s safety performance record. Safety Performance Goals may include, but are not limited to, lost time accident (LTA) rate, incident rate, citations issued, etc. If there is more than one goal, relative weights will be assigned to each goal so that the sum of all weighting factors is equal to 1.0. The Safety Performance Goals applicable for the 2012 Plan Year are more fully described in the Parameters.

 

3.                                      Operational/Departmental/Individual Goals - 20% of a Participant’s incentive opportunity.

 

As soon as practicable at or near the beginning of the Plan Year, each Operating Unit and Department will establish one or more Operational, Departmental and/or Individual Goals. If there is more than one goal, the Department and the manager will assign relative weights to each goal so that the sum of all weighting factors is equal to 1.0. The goals will be reviewed and approved by the next level of executive management, and communicated directly to the Participant.

 

Operational/Departmental/ Individual Goals will focus on key actions and accomplishments within the department that support the Company’s strategic objectives. The goals, in order to be effective, must be specific and measurable, to the greatest extent possible. Examples of Operational/Departmental/Individual Goals will relate to operation excellence, growth of our Company, employee development, coal production, and cost per metric ton.

 

A Participant’s manager shall have the authority, with the written approval of the next level of executive management, to review and adjust the Operational/Departmental/Individual Goals during the Plan Year because of unanticipated events, including, but not limited to, windfall gains, disposal of significant assets, catastrophes and other nonrecurring events.

 

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VI.                               Target Incentive Opportunity

 

1.                                      Each Participant in the Program will have a Target Incentive Opportunity, as determined by the Committee or in accordance with the Company’s compensation policies, as of the beginning of the Plan Year.

 

2.                                      A Target Incentive Opportunity represents the amount of additional cash compensation that will be recommended for payment if all the Financial, Safety and Operational/Departmental/Individual Performance Targets are attained at 100%.

 

3.                                      Actual payments to a Participant may be increased or decreased from the Participant’s Target Incentive Opportunity depending on actual performance compared to Performance Goals and final determination by the Committee, but in no event will a Participant’s Target Incentive Opportunity exceed the maximum award permitted under the Plan. Subject to the terms of the Plan, the maximum award under the Program will be a percentage of [year-end] Base Salary as determined by Company compensation policies.

 

VII.                          Incentive Fund

 

At the beginning of each Plan Year, subject to the terms of the Plan, the Company will establish an Incentive Fund derived from the aggregate of the Base Salaries of the Participants times their Target Incentive Opportunity. During the course of the Plan Year the Company may adjust the size of the Incentive Fund to reflect projected year-end performance, Participant changes and resulting year-end incentive payments; provided, however, that in no event may the Incentive Fund exceed the Award Pool.

 

VIII.                     Incentive Awards

 

1.                                      A Participant’s incentive award under the Program will be calculated by the sum of the following components:

 

Part A - Financial Performance to Financial Performance Goals

Part B - Safety Performance to Safety Performance Goals

Part C - Operational/Departmental/Individual Performance to Operational/Departmental/Individual Goals

 

4.                                      2.                                      The Operational/Departmental manager shall recommend at the beginning of the Plan Year, criteria to measure increases and decreases from the Performance Goals, which criteria shall be approved by the next level of executive management.

 

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5.                                      Minimum Individual Performance Required

 

Notwithstanding anything herein to the contrary, a Participant who has an overall “Unsatisfactory Performance” rating under the Company’s performance appraisal program is not eligible for an incentive payment hereunder unless and until such Participant’s performance improves to meet acceptable standards. A Participant who is not rated due to being new in the position is eligible for an incentive payment as long as the Participant is progressing satisfactorily towards expected standards and is meeting the other requirements of the Plan and Program.

 

6.                                      Incentive awards hereunder may not be paid until the completion of the Company’s audited financial statements corresponding to the Plan Year and the approval of the Company’s Audit Committee has been received.

 

7.                                      The calculated awards will be recommended for payment to the Committee. The Committee may use discretion to increase or decrease the size of the award; provided that no award may exceed the maximum award as provided in the Plan; and provided further, that the aggregate total of all awards granted in a Plan Year may not exceed the Award Pool.

 

IX.                              Timing and Method of Payment

 

1.                                      Awards hereunder, if any, will be paid in cash, less required withholdings, within 75 days following the end of the applicable Plan Year.

 

2.                                      Pro rata payments:

 

a.                                      A Participant must be an Employee at the time the bonus is paid in order to receive an incentive payment under the Program. A Participant whose employment terminates for any reason before the end of the applicable Plan Year will not be eligible for an incentive award for that Plan Year unless the termination was the result of death, disability or retirement under a Company sponsored retirement plan, in which case, a pro rata payment based on the portion of the Plan Year worked applied to target (or less than target if actual performance is below target in any area) may be recommended to the Committee, provided the Participant worked at least three months during the Plan Year. “Retirement” is defined as the termination of the Plan Participant’s employment with the Company and its Subsidiaries other than for cause and either (a) on or after the date on which the Participant attains the age of 60, or, (b) on a date on which the sum of the Participant’s age and completed years

 

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of employment with the Company and its Subsidiaries is at least eighty (80).

 

b.                                      Participants who are hired following the commencement of a Plan Year, or are transferred or promoted into an incentive eligible position may be recommended for a pro rata payment , based on their time in the eligible position, as long as they have worked in that position at least three months during the Plan Year.

 

c.                                       Participants who are promoted or transferred from one incentive position to another incentive position will receive a pro rata payment based on the period of time they were in each position and the Participant’s year-end Base Salary. Any pro rata payment from Part A- Financial Performance and Part B- Safety will be measured and apportioned at the end of the Plan Year. Operational/Departmental/Individual Goals must be set and measured for the period in each position.

 

d.                                      If there is a qualifying termination following a change in control of the Company, a pro rata portion of the [target amount] may be paid out unless otherwise specified by an individual employment or change in control agreement.

 

3.                                      Notwithstanding anything herein to the contrary, a Participant who is eligible for payment of an incentive under the Program following termination of employment and under the terms of an employment, severance, or change in control agreement will be paid at a time and frequency specified in such employment, severance, or change in control agreement. If the Participant is a “Specified Employee” as defined under Section 409A of the Internal Revenue Code, the payment shall be deferred until the first business day after the date that is six (6) months after the termination date in order to comply with the Code.

 

4.                                      Clawbacks: If any of the Company’s financial statements are required to be restated due to errors, omissions, fraud, or misconduct, the Committee may, in its sole discretion but acting in good faith, direct that the Company recover all or a portion of any incentive award hereunder or any past or future compensation from any Participant with respect to any fiscal year of the Company for which the financial results are negatively affected by such restatement. For purposes of this paragraph, errors, omissions, fraud, or misconduct may include and is not limited to circumstances where the Company has been required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement, as enforced by the United States Securities and Exchange Commission, and the Committee has determined in its sole discretion that a Participant had knowledge of the

 

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material noncompliance or the circumstances that gave rise to such noncompliance and failed to take reasonable steps to bring it to the attention of the appropriate individuals within the Company, or the Participant personally and knowingly engaged in practices which materially contributed to the circumstances that enabled a material noncompliance to occur.

 

X.                                   Effective Date and Duration

 

1.                                      The Program shall be effective as of January 1, 2012.

 

2.                                      The Committee may discontinue the Program, in whole or in part, at any time, or may, from time to time, amend the Program in any respect that the Committee may deem to be advisable.

 

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2012 Performance Metrics and Design Parameters

 

Mechanics

 

1.              Each Participant will have a target incentive opportunity expressed as a percentage of salary.

 

2.              The Program will use a “balanced scorecard” of goals including financial, safety and individual goals.

 

3.              All Participants will have a shared corporate financial goal — consolidated net income.

 

4.              Each goal will have an assigned weight, with all weights adding to 100%.

 

5.              Each goal will have assigned threshold, target and maximum performance levels, established to ensure both the appropriate degree of stretch and probability of achievement.

 

6.              Award payouts will range from 50% of target award for threshold performance, to 100% of target for performance at target, to 200% of target for maximum performance.

 

7.              Performance against each goal will be assessed, weighted and added together to determine the award for each Participant at year-end.

 

Performance Metrics

 

1.         Financial (60% Weighting)

 

a.         Consolidated Net Income: 20% weighting for all Participants.

 

b.         Production Tons: 20% weighting for all Participants.

 

i.                 Corporate Officers and Staff: Metric will be the sum of all business units.

ii.              Business Unit Executives and Staff: Metric will be the sum of mines in the business unit.

iii.           Mine Managers and Staff: Metric will be mine specific.

 

c.          Cash Cost per Ton: 20% weighting for all Participants.

 

i.                 Corporate Officers and Staff: Metric will be a weighted based on operating income of all business units.

ii.              Business Unit Executives and Staff: Metric will be a weighted based on operating income of mines in the business unit.

iii.           Mine Managers and Staff: Metric will be mine specific.

 

2.         Safety (20% Weighting)

 

a.         Based on reportable incident rates for all Participants.

 

i.                 Corporate Officers and Staff: Metric will be a weighted based on operating income of all business units.

 

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ii.              Business Unit Executives and Staff: Metric will be a weighted based on operating income of mines in the business unit.

iii.           Mine Managers and Staff: Metric will be mine specific.

 

b.         In the event of a fatality, all Participants will automatically lose one-fourth of the safety component incentive opportunity, and the business unit in which the fatality occurred will lose all of the safety component incentive opportunity.

 

3.         Individual Goals (20% Weighting)

 

a.         All Participants will have documented individual goals, developed in conjunction with their manager.

 

b.         Goals must be specific, measureable and tied directly to furthering the Company’s overall business objectives.

 

Final Awards

 

After initial awards are determined through application of the goal weights and performance against targets, the Committee will have discretion to adjust the initial awards to take into account relevant factors that affected performance during the year, i.e. key external factors, performance versus peers, etc. Awards will be paid annually in cash, less required withholdings, within 75 days of the close of the performance period.

 

10Exhibit 10.11.8

 

 

This document constitutes port of the prospectus covering
 securities that have been registered under the Securities Act of 1933.

 

Walter Energy, Inc.

Long-Term Incentive Award Plan

Amended and Restated Restricted Stock Unit Award Agreement

(2-Year Cliff Retention Award)

 

THIS AMENDED AND RESTATED AGREEMENT, effective as of June 26, 2011 (the “Agreement”), represents a grant of restricted stock units (“RSUs”) by Walter Energy, Inc., a Delaware corporation (the “Company”), to the Participant named below, pursuant and subject to the provisions of the Amended and Restated 2002 Long-Term Incentive Award Plan of Walter Energy, Inc., as it may be amended from time to time (the “Plan”) and the additional revised terms set forth in this Agreement.

 

As of the Date of Grant set forth below, the Company granted the Participant 8,025 RSUs subject to a three year vesting schedule. The Committee (as defined in the Plan) has determined that, in light of the Participant’s up-coming retirement, it would be to the advantage and best interest of the Company and its shareholders to amend and restate that certain Restricted Stock Unit Award Agreement, effective as of the Date of Grant (the “Prior Agreement”), to reduce the vesting schedule along with a comparable pro-rata reduction in the number of RSUs subject to such grant. Accordingly, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree that the Prior Agreement is hereby amended and restated in its entirety as set forth herein.

 

The Plan provides a complete description of the terms and conditions governing the grant of RSUs. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, except as noted in Section 6 regarding a Change in Control, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement.

 

All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein.

 

	
Participant: 
    	
Charles C. Stewart
    
	
Date of Grant: 
    	
April 1, 2011
    
	
Number of RSUs Granted: 
    	
5,350 (subject to adjustment as set forth herein and in the Plan)
    

 

The parties hereto agree as follows:

 

1.             Vesting. Subject to the Participant’s continued employment with the Company or any of its Subsidiaries through the Vesting Date (as defined below), one hundred percent (100%) of the RSUs granted hereunder shall vest on the second anniversary of the Grant Date (such date, the “Vesting Date”). The period from the Date of Grant through (and including) the Vesting Date shall be referred to herein as the “Period of Restriction.”

 

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2.             Timing of Payout. Payout of all vested RSUs shall occur as soon as administratively feasible after the Vesting Date, but in no event more than thirty (30) days thereafter.

 

3.             Form of Payout. Vested RSUs will be paid out solely in the form of shares of stock of the Company.

 

4.             Voting Rights and Dividends. Until such time as the RSUs are paid out in shares of Company stock, the Participant shall not have voting rights. Further, no dividends shall be paid on any RSUs.

 

5.             Termination of Employment. In the event of the Participant’s termination of employment with the Company or any of its Subsidiaries for any reason during the Period of Restriction, all RSUs held by the Participant at the time of termination and still subject to the Period of Restriction shall be forfeited by the Participant to the Company without consideration as of the termination date and the Participant shall have no further rights with respect thereto. Notwithstanding anything herein to the contrary, the Committee may, in its sole discretion, vest all or any portion of the RSUs held by the Participant. If such vesting occurs, payout shall be made as soon as administratively feasible following the date of the Participant’s termination, but in no event more than thirty (30) days thereafter.

 

6.             Change in Control. Notwithstanding anything to the contrary in the Plan or in Section 1 or Section 2 above and in accordance with the approval of the Board on the Date of Grant, in the event of a Change in Control of the Company during the Period of Restriction and prior to the Participant’s termination of employment, a number of RSUs shall (x) vest in an amount equal to the number of RSUs granted hereunder multiplied by a fraction, the numerator of which is the number of days beginning on the Date of Grant and ending on the date of the Change in Control of the Company and the denominator of which is 730 and (y) be paid out as soon as administratively feasible following the occurrence of a Change in Control of the Company, but in no event more than thirty (30) days thereafter. If the Participant remains employed by the Company or any of its Subsidiaries following the Change in Control of the Company during the Period of Restriction, then the remaining unvested RSUs shall remain outstanding until the earlier to occur of (A) the Vesting Date and (B) the date of the Participant’s termination. If the Participant’s employment terminates for any reason (other than (1) by the Company or one of its Subsidiaries without Cause (other than due to death or Disability) or (2) by the Participant due to a material change in his position) after a Change in Control of the Company, but prior to the Vesting Date, then any remaining unvested RSUs shall be forfeited by the Participant to the Company without consideration as of the date of the Participant’s termination and the Participant shall have no further rights with respect thereto. However if the Participant’s employment is terminated (I) by the Company or one of its Subsidiaries without Cause (other than due to death or Disability) or (II) by the Participant due to a material change in his position, in each case, after a Change in Control of the Company, but prior to the Vesting Date, then the remaining unvested RSUs shall be deemed vested on the Participant’s termination date and shall be paid out as soon as administratively feasible following the date of the Participant’s termination, but in no event more than thirty (30) days thereafter.

 

For purposes of this Section 6, “Cause” shall be determined solely by the Committee in the exercise of good faith and reasonable judgment, and shall mean the occurrence of any one or more of the following:

 

(i)           willful and continued refusal to perform the duties of the Participant’s position (other than any such failure resulting from the Participant’s incapacity due to physical or mental illness);

 

(ii)          the Participant’s conviction or guilty plea of a felony involving fraud or dishonesty;

 

(iii)         theft or embezzlement by the Participant of property from the Company; or

 

(iv)        fraudulent preparation by the Participant of financial information of the Company or any subsidiary or affiliate.

 

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For purposes of this Section 6, the term “Disability” shall mean any medical condition whatsoever which leads to the Participant’s absence from his job function for a continuous period of six (6) months without the Participant being able to resume such functions on a full time basis at the expiration of such period, it being understood that unsuccessful attempts to return to work for periods under thirty (30) days shall not be deemed to have interrupted said continuity.

 

7.             Non-Compete/Non-Solicit. It is understood and agreed that the Participant has and will continue to have substantial relationships with specific businesses and personnel, prospective and existing, vendors, contractors, customers, and employees of the Company and its Subsidiaries that result in the creation of customer goodwill. Therefore, while the Participant is employed by the Company or any of its Subsidiaries and continuing for a period of twelve (12) months following the date of the Participant’s termination of employment, so long as the Company or any affiliate, successor or assign thereof is in the coal mining business or like business within the Restricted Area (defined as mining industries in the geographical areas in which the Company or any of Its Subsidiaries competes at the time of the Participant’s termination), unless the Board approves an exception, the Participant shall not, directly or indirectly, either personally or on behalf of, or in conjunction with, any other person, persons, company, partnership, corporation, business entity or otherwise:

 

(a)           Call upon, solicit, write, direct, divert, influence, or accept business (either directly or indirectly) with respect to any account or customer or prospective customer of the Company or any corporation controlling, controlled by, under common control with, or otherwise related to the Company, including but not limited to any other affiliated companies; or

 

(b)           Hire away any independent contractors or personnel of the Company and/or entice any such persons to leave the employ of the Company or its affiliated entities without the prior written consent of the Company.

 

8.             Restrictions on Transfer. Unless and until actual shares of stock of the Company are received upon payout, RSUs granted pursuant to this Agreement may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated (a “Transfer’’), other than by will or by the laws of descent and distribution, except as provided for in the Plan. If any Transfer, whether voluntary or involuntary, of RSUs is made, or if any attachment, execution, garnishment, or lien shall be issued against or placed upon the RSUs, the Participant’s right to such RSUs shall be immediately forfeited by the Participant to the Company, and this Agreement shall lapse.

 

9.             Recapitalization. In the event of any change in the capitalization of the Company such as a stock split or a corporate transaction such as any merger, consolidation, separation, or otherwise, the number and class of RSUs subject to this Agreement shall be equitably adjusted by the Committee, in its sole discretion, to prevent dilution or enlargement of rights.

 

10.          Beneficiary Designation. The Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Agreement is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Secretary of the Company during the Participant’s lifetime, In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.

 

11.          No Right to Continuation of Employment or Other Equity Awards. This Agreement shall not confer upon the Participant any right to continue employment with the Company or its Subsidiaries, nor shall this Agreement interfere in any way with the Company’s or its Subsidiaries’ right to terminate the Participant’s

 

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employment at any time. In addition, this grant of RSUs shall not confer any right upon the Participant to be granted RSUs or other Awards in the future under the Plan.

 

12.          Miscellaneous.

 

(a)          This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. The Committee shall have the right to impose such restrictions on any shares acquired pursuant to this Agreement, as it may deem advisable, including, without limitation, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such shares. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant.

 

(b)          The Committee may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any material way adversely affect the Participant’s rights under this Agreement, without the written consent of the Participant. Notwithstanding the foregoing, the Committee may, without obtaining the written consent of the Participant, amend this Agreement in any manner that it deems necessary or desirable to comply with the requirements of Section 409A of the Code or an exemption thereto.

 

(c)           The Participant may elect, subject to any procedural rules adopted by the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold and sell shares having an aggregate Fair Market Value on the date the tax is to be determined, equal to the amount required to be withheld.

 

The Company shall have the power and the right to deduct or withhold from the Participant’s compensation, or require the Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation), domestic or foreign, required by law to be withheld with respect to any payout to the Participant under this Agreement.

 

(d)          The Participant agrees to take all steps necessary to comply with all applicable provisions of federal and state securities laws in exercising his or her rights under this Agreement.

 

(e)           This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

(f)          This Agreement and the Plan constitute the entire understanding between the Participant and the Company regarding the RSUs granted hereunder. This Agreement and the Plan supersedes any prior agreements, commitments or negotiations concerning the RSUs granted hereunder, including, without limitation, the Prior Agreement.

 

(g)          All obligations of the Company under the Plan and this Agreement, with respect to the RSUs, 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.

 

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(h)          To the extent not preempted by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the state of Delaware.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of the date set forth above.

 

	
 
    	
 
    	
Walter Energy, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Joseph B. Leonard
    
	
 
    	
 
    	
Joseph B. Leonard
    
	
 
    	
 
    	
Interim Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Charles C. Stewart
    
	
 
    	
 
    	
Charles C. Stewart
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date: 
    	
8/11/11
    

 

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