The Plan was established pursuant to the National Bituminous Coal Wage Agreement of 1988 (the 1988 Agreement) and is a deferred compensation plan, commonly referred to as a 401(k) plan. It is available to substantially all individuals employed in classified jobs for employers who are signatory to the 1988 Agreement. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

The Plan allows each participant to defer up to 25 percent of his compensation, plus certain pay for unused personal or sick leave days. The employer does not match any amounts deferred by participants.

Participants' contributions are invested by one or more of six investment managers, based on instructions from each participant. Each participant's account is credited with his contributions, and his proportionate share of the Plan's earnings on the assets invested by the specific investment managers chosen by the participant. Administrative costs incurred by the UMWA Cash Deferred Savings Plan of 1988 will be borne by the employer; provided that, the amount will be limited to $350,000 in 2007, which amount shall be increased to $355,000 in 2008, $360,000 in 2009, $365,000 in 2010, and $370,000 in 2011.

The Internal Revenue Service has determined and informed the Trustees by a letter dated December 31, 2002 that the Plan is qualified, and the trust established under the Plan is tax-exempt, under the appropriate sections of the Internal Revenue Code.