Exhibit 10.1

EXECUTION COPY

AMENDMENT NO. 2

Dated as of September 30, 2009

To the banks, financial institutions

    and other institutional lenders

    (collectively, the “Lenders”) parties

    to the Credit Agreement referred to

    below and to JPMorgan Chase Bank, N.A.,

    as Paying Agent, and JPMorgan Chase Bank, N.A.

    and Citicorp USA, Inc., as Co-Administrative Agents

    for the Lenders

Ladies and Gentlemen:

We refer to the Second Amended and Restated Credit Agreement dated as of
September 25, 2007, as amended by Letter Amendment No. 1 dated as of June 26,
2008 (as amended, supplemented or otherwise modified through the date hereof,
the “Credit Agreement”) among the undersigned and you. Capitalized terms not
otherwise defined in this Amendment have the same meanings as specified in the
Credit Agreement.

You and we have agreed, upon the following terms and conditions, to amend the
Credit Agreement in certain respects. Accordingly, it is hereby agreed by you
and us as follows:

Section 1. Amendments to Credit Agreement. The Credit Agreement is, effective as
of the date of this Amendment, hereby amended as follows:

(a)      The definition of “Applicable Margin” in Section 1.01 is amended by
deleting the table contained therein and replacing it with the following:

 

Consolidated Debt to

Consolidated Cash Flow Ratio

  Base Rate Advances   Eurodollar Rate Advances

Level I

1.50:1.0 or greater

  1.000%   2.000%

Level II

1.00:1.0 or greater,

but less than 1.50:1.0

  0.550%   1.550%

Level III

0.50:1.0 or greater,

but less than 1.00:1.0

  0.350%   1.350%

Level IV

less than 0.50:1.0

  0.115%   1.115%

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(b)      The definition of “Applicable Percentage” in Section 1.01 is amended by
deleting the table contained therein and replacing it with the following:

 

Consolidated Debt to Consolidated

Cash Flow Ratio

  Applicable Percentage

Level I

1.50:1.0 or greater

  0.500%

Level II

1.00:1.0 or greater,

but less than 1.50:1.0

  0.375%

Level III

0.50:1.0 or greater,

but less than 1.00:1.0

  0.250%

Level IV

less than 0.50:1.0

  0.250%

(c)      The definition of “Defaulting Lender” in Section 1.01 is amended in
full to read as follows:

“Defaulting Lender” means, at any time, any Lender Party that, at such time
(a) owes a Defaulted Advance or a Defaulted Amount, (b) shall take any action or
be the subject of any action or proceeding of a type described in
Section 6.01(f), (c) shall have been placed into receivership or conservatorship
by any bank regulatory authority or other Governmental Authority, including the
Federal Deposit Insurance Corporation, (d) notified the Borrower, the Paying
Agent, any Issuing Bank, the Swing Line Bank or any Lender in writing that it
does not intend to comply with any of its funding obligations under this
Agreement or has made a public statement to the effect that it does not intend
to comply with its funding obligations under this Agreement or under other
agreements generally in which it commits to extend credit or (e) failed, within
three Business Days after request by the Paying Agent, to confirm that it will
comply with the terms of this Agreement relating to its obligations to fund
prospective Advances and participations in then outstanding Letters of Credit
and Swing Line Advances.

(d)      The definition of “Unused Revolving Credit Commitment” in Section 1.01
is amended by replacing the reference in clause (C) to “Section 2.01(d)” with a
reference to “Section 2.01(b)”.

(e)      Section 2.15 is redesignating subsection (d) thereof as subsection
“(f)” and by inserting the following new subsections immediately before such
subsection:

 (d)      If any Swing Line Advances are outstanding that have not been funded
by the Lenders pursuant to Section 2.02(b) (the aggregate principal amount of
such Swing Line Advances is the “Swing Line Exposure”) or Letters of Credit are
outstanding, in either case at the time a Lender becomes a Defaulting Lender
then:

  (i)        all or any part of such Swing Line Exposure and the Available
Amount of outstanding Letters of Credit shall be reallocated among the
non-Defaulting Lenders in accordance with their respective Pro Rata Shares
(disregarding any Defaulting Lender’s Revolving Credit Commitment) but only to
the extent that (x) the sum of (A) the aggregate principal amount of all
Advances made by such non-Defaulting Lenders (in their capacity as Lenders) and
outstanding at such time, plus (B) such non-Defaulting Lenders’ Pro Rata Shares
(before giving effect to the reallocation contemplated herein) of the Swing Line
Exposure, plus (C) such non-Defaulting Lenders’ Pro Rata Shares (before giving
effect to the reallocation contemplated herein) of the Available Amount of all
outstanding Letters of Credit, plus (D) the aggregate principal amount of all
Advances made by each Issuing Bank pursuant to Section 2.03(d) that have not
been ratably funded

 

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by such non-Defaulting Lenders and outstanding at such time, plus (E) such
Defaulting Lender’s Pro Rata Share of the Swing Line Exposure plus the Available
Amount of such Letters of Credit, does not exceed the total of all
non-Defaulting Lenders’ Revolving Credit Commitments and (y) the conditions set
forth in Section 3.02 are satisfied at such time; provided, however, for the
avoidance of doubt, in no event shall the portion of such Swing Line Exposure
and Available Amount of outstanding Letters of Credit reallocated to any
non-Defaulting Lender at such time exceed the then Unused Revolving Credit
Commitment of such non-Defaulting Lender.

  (ii)        if the reallocation described in clause (i) above cannot, or can
only partially, be effected, the Borrower shall within one Business Day
following notice by the Paying Agent (x) first, prepay such Swing Line Advances
and (y) second, cash collateralize such Defaulting Lender’s Pro Rata Share of
the Available Amount of such Letters of Credit (after giving effect to any
partial reallocation pursuant to clause (i) above) by paying into the account
maintained by the Escrow Bank in accordance with subsection (c) above for so
long as such Letters of Credit are outstanding;

  (iii)       if the Borrower cash collateralizes any portion of such Defaulting
Lender’s Pro Rata Share of Letters of Credit pursuant to this Section 2.15(d),
the Borrower shall not be required to pay any fees to such Defaulting Lender
pursuant to Section 2.08(b) with respect to such Defaulting Lender’s Pro Rata
Share of Letters of Credit during the period such Defaulting Lender’s Pro Rata
Share of Letters of Credit is cash collateralized;

  (iv)       if the Pro Rata Shares of Letters of Credit of the non-Defaulting
Lenders is reallocated pursuant to this Section 2.15(d), then the fees payable
to the Lenders pursuant to Section 2.08(b) shall be adjusted in accordance with
such non-Defaulting Lenders’ Pro Rata Shares of Letters of Credit; or

  (v)       if any Defaulting Lender’s Pro Rata Share of Letters of Credit is
neither cash collateralized nor reallocated pursuant to Section 2.15(d), then,
without prejudice to any rights or remedies of the Issuing Bank or any Lender
hereunder, all letter of credit fees payable under Section 2.08(b) with respect
to such Defaulting Lender’s Pro Rata Share of Letters of Credit shall be payable
to the Issuing Bank until such Lender’s Pro Rata Share of Letters of Credit is
cash collateralized and/or reallocated; and

 (e)      So long as any Lender is a Defaulting Lender, the Swing Line Bank
shall not be required to fund any Swing Line Advance and the Issuing Bank shall
not be required to issue, amend or increase any Letter of Credit, unless it is
satisfied that the related exposure will be 100% covered by the Commitments of
the non-Defaulting Lenders and/or cash collateral will be provided by the
Borrower in accordance with Section 2.15(d), and participating interests in any
such newly issued or increased Letter of Credit or newly made Swing Line Advance
shall be allocated among non-Defaulting Lenders in a manner consistent with
Section 2.15(d)(i) (and Defaulting Lenders shall not participate therein).

In the event that the Paying Agent, the Borrower, the Issuing Bank and the Swing
Line Bank each agrees that a Defaulting Lender has adequately remedied all
matters that caused such Lender to be a Defaulting Lender, or if such Defaulting
Lender has assigned its Revolving Credit Commitment in whole or in part to a
non-Defaulting Lender, then the Pro Rata Shares of the Lenders shall be
readjusted to reflect the inclusion of such Lender’s (or its assignee’s)
Commitment and on such date such Lender (or its assignee) shall purchase at par
such of the

 

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Advances of the other Lenders (other than Swing Line Advances) as the Paying
shall determine may be necessary in order for such Lender to hold such Advances
in accordance with its Pro Rata Share.

(f)      Section 2.17 is amended in full to read as follows:

  SECTION 2.17. Replacement of Certain Lenders. If (1) any Lender (a “Subject
Lender”) (a) is a Defaulting Lender that owes a Defaulted Advance to the
Borrower, (b) makes demand upon the Borrower for (or if the Borrower is
otherwise required to pay) amounts pursuant to Section 2.10 (a) or (b) or
Section 2.12 or (c) gives notice pursuant to Section 2.10(d) requiring a
Conversion of such Subject Lender’s Eurodollar Rate Advances to Base Rate
Advances or suspending such Lender’s obligation to make Advances as, or to
Convert or continue Advances into or as, Eurodollar Rate Advances or (2) the
Borrower is required, pursuant to Section 2.15(d)(ii), to prepay any Swing Line
Advance or cash collateralize the Available Amount of any outstanding Letters of
Credit on account of such Defaulting Lender’s status as such, the Borrower may,
within 150 days after (i) in the case of clause (1)(a) above, the date on which
the Advance that is the subject of such Defaulted Advance was required to have
been funded by the Lenders pursuant to Section 2.01(a) or (b) or 2.03(c) or
(ii) in the case of clause (1)(b), (1)(c) or (2) above, receipt by the Borrower
of such demand or notice (or the occurrence of such other event causing the
Borrower to be required to pay such compensation), as the case may be, give
notice (a “Replacement Notice”) in writing to the Paying Agent and such Subject
Lender of its intention to replace such Subject Lender with an Eligible Assignee
designated in such Replacement Notice (a “Replacement Lender”). Such Subject
Lender shall, subject to the payment to such Subject Lender of any amounts due
pursuant to Sections 2.10(a) and (b) and Section 2.12 and all other amounts then
owing to it under the Loan Documents, assign in accordance with Section 8.07 all
of its Commitments, Advances, Notes and other rights and obligations under this
Agreement and all other Loan Documents to such proposed Eligible Assignee.
Promptly upon the effective date of an assignment described above, the Borrower
shall issue a replacement Note or Notes, as the case may be, to such Replacement
Lender and such Replacement Lender shall become a “Lender” for all purposes
under this Agreement and the other Loan Documents.

(g)      Section 5.04(c) is amended by deleting the table contained therein and
replacing it with the following:

 

 

Amount per annum

 

 

 

Fiscal Year Ending

 

 

$425,000,000

 

 

 

December 31, 2009

 

 

$375,000,000

 

 

 

December 31, 2010

 

 

$350,000,000

 

 

 

December 31, 2011

 

 

$250,000,000

 

 

 

December 31, 2012

 

    Section 2. Representation. The Company represents and warrants that the
representations and warranties contained in Section 4.01 of the Credit Agreement
are correct in all material respects on and as of the date hereof (or, if any
such representation or warranty is expressly stated to have been made as of a
specific date, as of such specific date), before and after giving effect to this
Amendment, and no Default has occurred and is continuing.

 

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Section 3. Effectiveness, Etc. This Amendment shall become effective as of the
date first above written when, and only when, the Paying Agent shall have
received counterparts of this Amendment executed by the undersigned and the
Required Lenders and the Paying Agent shall have received the following:

(a)        The consent of each Guarantor in the form attached hereto.

(b)        Certified copies of the resolutions (or excepts thereof) of or on
behalf of each Loan Party approving this Amendment and the Consent (to the
extent applicable to it) and/or authorizing the general partner, managing member
or officers, as applicable, to act on behalf of such limited partnership or
limited liability company, as the case may be, and of all documents evidencing
other necessary action (including, without limitation, all necessary general
partner, managing member, board of directors or other similar action) and
governmental and other third party approvals and consents, if any, with respect
to this Amendment or the Consent, as applicable.

(c)        A certificate of the Secretary or an Assistant Secretary of each Loan
Party or on its behalf by its managing general partner or managing member, as
applicable, certifying the names and true signatures of the officers or
managers, as applicable, of such Person authorized to sign on its behalf this
Amendment or the Consent, as applicable.

(d)        A favorable opinion of Katten Muchin Rosenman LLP, counsel for the
Loan Parties, in form and substance acceptable to the Paying Agent.

(e)        An amendment fee for the account of the Lenders that approve this
Amendment on or before September 30, 2009 equal to 0.15% of the commitments of
such Lenders.

(f)        The fees and expenses of Shearman & Sterling LLP, counsel to the
Paying Agent, to the extent that such fees and expenses have been invoiced at
least 24 hours prior to the date hereof.

This Amendment is subject to the provisions of Section 8.01 of the Credit
Agreement.

On and after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import
referring to the Credit Agreement, and each reference in the Notes and each of
the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or
words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement, as amended by this Amendment.

The Credit Agreement, the Notes and each of the other Loan Documents, as
specifically amended by this Amendment, are and shall continue to be in full
force and effect and are hereby in all respects ratified and confirmed. The
execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of
any Lender or any Agent under any of the Loan Documents, nor constitute a waiver
of any provision of any of the Loan Documents.

If you agree to the terms and provisions hereof, please evidence such agreement
by executing and returning at least one signature page of this Amendment to
Susan L. Hobart, Shearman & Sterling LLP, 599 Lexington Avenue, New York, New
York 10022.

 

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This Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page
to this Amendment by telecopier or other electronic medium shall be effective as
delivery of an original executed counterpart of this Amendment.

 

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This Amendment shall be governed by, and construed in accordance with, the laws
of the State of New York.

 

Very truly yours, ALLIANCE RESOURCE OPERATING PARTNERS, L.P.

By:   ALLIANCE RESOURCE MANAGEMENT GP, LLC,
  its Managing General Partner

By  

/s/ Cary P. Marshall

  Name:    Cary P. Marshall  
Title:      Vice President - Corporate Finance and Treasurer

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Agreed as to the foregoing Amendment as of the date first above written:

JPMORGAN CHASE BANK, N.A.

as Paying Agent, Co-Administrative Agent and Lender

 

By  

/s/ Stacey Haimes

  Name: Stacey Haimes   Title: Executive Director

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Agreed as to the foregoing Amendment as of the date first above written:

 

CITICORP USA, INC., as Co-Administrative Agent and Lender By  

/s/ Raymond G. Dunning

  Name: Raymond G. Dunning   Title: Vice President

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Agreed as to the foregoing Amendment as of the date first above written:

 

BANK OF OKLAHOMA, N.A. By  

/s/ Allen Hoerman

  Name: Allen Hoerman   Title: Vice President

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Agreed as to the foregoing Amendment as of the date first above written:

 

FIFTH THIRD BANK By  

/s/ Tim Adair

  Name: Tim Adair   Title: Assistant Vice President

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Agreed as to the foregoing Amendment as of the date first above written:

FIRST COMMERCIAL BANK, LOS ANGELES BRANCH

 

By  

/s/ Wen-Han Wu

  Name: Wen-Han Wu   Title: Deputy General Manager

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Agreed as to the foregoing Amendment as of the date first above written:

 

LEHMAN COMMERCIAL PAPER INC. By  

 

  Name:   Title:

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Agreed as to the foregoing Amendment as of the date first above written:

 

NATIONAL CITY BANK By  

/s/ Susan J. Dimmick

  Name: Susan J. Dimmick   Title: Senior Vice President

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Agreed as to the foregoing Amendment as of the date first above written:

 

ROYAL BANK OF CANADA By  

/s/ Jay T. Sartain

  Name: Jay T. Sartain   Title: Authorized Signatory

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Agreed as to the foregoing Amendment as of the date first above written:

 

UBS LOAN FINANCE LLC By  

/s/ Marie Haddad

  Name: Marie Haddad   Title: Associate Director

 

By  

/s/ Irja R. Otsa

  Name: Irja R. Otsa   Title: Associate Director

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Agreed as to the foregoing Amendment as of the date first above written:

 

U.S. BANK NATIONAL ASSOCIATION By  

/s/ John M. Eyerman

  Name: John M. Eyerman   Title: Officer

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Agreed as to the foregoing Amendment as of the date first above written:

 

WACHOVIA BANK N.A. By  

/s/ Robert G. McGill Jr.

  Name: Robert G. McGill Jr.   Title: Director

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Agreed as to the foregoing Amendment as of the date first above written:

MEGA INTERNATIONAL COMMERCIAL BANK CO. LTD.

 

By  

/s/ Priscilla H.T. Hsing

  Name: Priscilla H.T. Hsing   Title: VP & DGM

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CONSENT

Dated as of September 30, 2009

Each of the undersigned, as Guarantors under the Subsidiary Guaranty dated
September 25, 2007 (the “Guaranty”) in favor of the Lender Parties and the
Agents, each as defined in the Credit Agreement referred to in the foregoing
Amendment No. 2, hereby consents to such Amendment and hereby confirms and
agrees that (a) notwithstanding the effectiveness of such Amendment, the
Guaranty is, and shall continue to be, in full force and effect and is hereby
ratified and confirmed in all respects, except that, on and after the
effectiveness of such Amendment, each reference in the Guaranty to the “Credit
Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a
reference to the Credit Agreement, as amended by such Amendment, and (b) each
Guarantor does, and shall continue to, absolutely, unconditionally and
irrevocably guarantee the punctual payment when due of all Guaranteed
Obligations (as defined in the Guaranty).

 

ALLIANCE COAL, LLC By:  

/s/ Cary P. Marshall

  Name: Cary P. Marshall  
Title: Vice President – Corporate Finance and Treasurer

 

ALLIANCE RESOURCE PROPERTIES, LLC ALLIANCE DESIGN GROUP, LLC ALLIANCE LAND, LLC
ALLIANCE PROPERTIES, LLC ALLIANCE SERVICE, INC. BACKBONE MOUNTAIN, LLC EXCEL
MINING, LLC GIBSON COUNTY COAL, LLC HOPKINS COUNTY COAL, LLC MATRIX DESIGN
GROUP, LLC MC MINING, LLC METTIKI COAL, LLC METTIKI COAL (WV), LLC MT. VERNON
TRANSFER TERMINAL, LLC PENN RIDGE COAL, LLC PONTIKI COAL, LLC RIVER VIEW COAL,
LLC TUNNEL RIDGE, LLC WARRIOR COAL, LLC WEBSTER COUNTY COAL, LLC WHITE COUNTY
COAL, LLC By:  

/s/ Cary P. Marshall

  Name: Cary P. Marshall  
Title: Vice President – Corporate Finance and Treasurer