Document:

<PAGE>   1

                                                                    EXHIBIT 10.4

                                                                  Execution Copy

================================================================================

                                OMNIBUS AGREEMENT

                                      among

                        ALLIANCE RESOURCE HOLDINGS, INC.

                           ALLIANCE RESOURCE GP, LLC

                      ALLIANCE RESOURCE MANAGEMENT GP, LLC

                                       and

                        ALLIANCE RESOURCE PARTNERS, L.P.

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>

<S>                                                                                                      <C>
ARTICLE I
   Definitions ....................................................................................      1
   1.1  Definitions ...............................................................................      1

ARTICLE II
   Business Opportunities .........................................................................      3
   2.1  Restricted Businesses .....................................................................      3
   2.2  Permitted Exceptions ......................................................................      3
   2.3  Procedures ................................................................................      4
   2.4  Termination ...............................................................................      6
   2.5  Scope of Restricted Business Prohibition ..................................................      6
   2.6  Enforcement ...............................................................................      6

ARTICLE III
   Indemnification ................................................................................      7
   3.1  Indemnification of MGP by SGP .............................................................      7
   3.2  Indemnification of Partnership Entities by ARH ............................................      7
   3.3  Indemnification Procedures ................................................................      7

ARTICLE IV
   Assignment .....................................................................................      8
   4.1  Assignment of Rights by Partnership Entities to ARH .......................................      8

ARTICLE V
   Miscellaneous ..................................................................................       9
   5.1  Choice of Law; Submission to Jurisdiction .................................................       9
   5.2  Notice ....................................................................................       9
   5.3  Entire Agreement; Supersedure .............................................................       9
   5.4  Effect of Waiver or Consent ...............................................................       9
   5.5  Amendment or Modification .................................................................       9
   5.6  Assignment ................................................................................      10
   5.7  Counterparts ..............................................................................      10
   5.8  Severability ..............................................................................      10
   5.9  Gender, Parts, Articles and Sections ......................................................      10
   5.10 Further Assurances ........................................................................      10
   5.11 Withholding or Granting of Consent ........................................................      10
   5.12 Laws and Regulations ......................................................................      10
   5.13 Negotiation of Rights of Limited Partners, Assignees, and Third Parties ...................      10
</TABLE>

                                      -i-
<PAGE>   3

                                OMNIBUS AGREEMENT

         THIS OMNIBUS AGREEMENT is entered into on, and effective as of, the
Closing Date by and among Alliance Resource Partners, L.P., a Delaware limited
partnership (the "MLP"), Alliance Resource Holdings, Inc., a Delaware
corporation ("ARH"), Alliance Resource GP, LLC, a Delaware limited liability
company and special general partner of the MLP (the "SGP"), Alliance Resource
Management GP, LLC, a Delaware limited liability company and managing general
partner of the MLP (the "MGP").

                                 R E C I T A L:

         ARH, the MLP, the SGP, in its capacity as the special general partner
of the MLP and Alliance Resource Operating Partners, L.P., a Delaware limited
partnership (the "OLP"), and the MGP, in its capacity as the managing general
partner of the MLP and the OLP, desire by their execution of this Agreement to
evidence their understanding, (i) as more fully set forth in Article II of this
Agreement, with respect to (a) those business opportunities that ARH will not
pursue unless the MLP has declined to engage in such business opportunity for
its own account and (b) the procedures whereby such business opportunities are
to be offered to the MLP and accepted or declined and (ii) as more fully set
forth in Article III of this Agreement, with respect to (a) the indemnification
obligations of the SGP in favor of the MGP relating to the indebtedness incurred
by the SGP and assumed by the OLP on the Closing Date and (b) the
indemnification obligations of ARH in favor of the Partnership Entities relating
to any liabilities associated with Martiki Coal Corporation, MAPCO Coal
International, Inc. and Cari International Mining, Inc.

         In consideration of the premises and the covenants, conditions, and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     1.1 DEFINITIONS. (a) Capitalized terms used herein but not defined herein
shall have the meanings given them in the MLP Agreement.

         (b) As used in this Agreement, the following terms shall have the
respective meanings set forth below:

          "Affiliate" shall have the meaning attributed to such term in the MLP
     Agreement.

          "Agreement" shall mean this Omnibus Agreement, as amended, modified,
     or supplemented from time to time in accordance with the terms hereof.

          "ARH" shall mean Alliance Resource Holdings, Inc., a Delaware
     corporation.

<PAGE>   4

          "ARH Entities" shall mean ARH and any of its Affiliates, other than
     the Partnership Entities and The Beacon Group, LP and its affiliated funds.

          "Bank Credit Agreement" means the Credit Agreement, dated as of August
     16, 1999, by and among the SGP, as Borrower, and The Chase Manhattan Bank,
     as Paying Agent thereunder, The Chase Manhattan Bank and Citicorp USA,
     Inc., as Co-Administrative Agents thereunder and the Initial Lenders and
     Swing Line Bank named as parties thereto.

          "Change of Control" shall have the meaning attributed to such term in
     Section 2.4.

          "Closing Date" shall mean the date of the closing of the initial
     public offering of common units representing limited partner interests in
     the MLP.

          "Conflicts Committee" shall have the meaning attributed to such term
     in the MLP Agreement.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended.

          "Indemnified Party" shall have the meaning assigned to such term in
     Section 3.3(a).

          "Indemnifying Party"shall have the meaning assigned to such term in
     Section 3.3(a).

          "Losses" shall have the meaning assigned to such term in Section 3.1.

          "Martiki Sale Agreement" shall mean the Stock Purchase and Sale
     Agreement, dated November 6, 1998 between MAPCO Coal Inc. and Coal Ventures
     Holding Company, Inc.

          "MGP" shall mean Alliance Resource Management GP, LLC, a Delaware
     limited liability company and managing general partner of the MLP.

          "MLP" shall mean Alliance Resource Partners, L.P., a Delaware limited
     partnership, and any successors thereto.

          "MLP Agreement"shall mean the Amended and Restated Agreement of
     Limited Partnership of the MLP, dated as of the Closing Date, as such
     agreement is in effect on the Closing Date, to which reference is hereby
     made for all purposes of this Agreement. No amendment or modification to
     the MLP Agreement subsequent to the Closing Date shall be given effect for
     the purposes of this Agreement unless consented to by each of the parties
     to this Agreement.

                                      -2-
<PAGE>   5

          "Note Purchase Agreement" means the Note Purchase Agreement, dated as
     of August 16, 1999, between the SGP and the several purchasers listed in
     the Schedule A attached thereto.

          "OLP" shall mean Alliance Resource Operating Partners, L.P., a
     Delaware limited partnership, and any successors thereto.

          "Partnership Entities" shall mean the SGP, the MGP and the MLP and any
     Affiliate controlled by the SGP, the MGP or the MLP.

          "Partnership Group" shall mean the MLP and any of its subsidiaries.

          "Person" shall mean an individual, corporation, partnership, joint
     venture, trust, limited liability company, unincorporated organization or
     any other entity.

          "SGP" shall mean Alliance Resource GP, LLC, a Delaware limited
     liability company and special general partner of the MLP.

          "Restricted Business" shall have the meaning attributed to such term
     in Section 2.1.

          "Voting Stock" means securities or membership interests of any class
     or series of either ARH or the MGP entitling the holders thereof to vote on
     a regular basis in the election of members of the board of directors, board
     of managers or other governing body of such entity.

                                  ARTICLE  II

                             BUSINESS OPPORTUNITIES

     2.1 RESTRICTED BUSINESSES. Subject to the terms of the MLP Agreement, for
as long as the MGP (or any Affiliate of ARH) is the managing general partner of
the MLP or the OLP, each of the ARH Entities shall be prohibited from engaging
in the business of mining, marketing or transporting coal in any state in the
United States (a "Restricted Business").

     2.2 PERMITTED EXCEPTIONS. Notwithstanding any provision of Section 2.1 to
the contrary, an ARH Entity may pursue an opportunity to purchase or invest in,
and may ultimately purchase, own and/or operate, a Restricted Business under any
of the following circumstances:

         (a) The Restricted Business was engaged in by the ARH Entity on the
date of this Agreement; or

         (b) The fair market value of the assets that comprise the Restricted
Business represents less than a majority of the fair market value of the
business being considered for purchase or investment, in the reasonable belief
of a majority of the board of directors of the ARH Entity; or

                                      -3-
<PAGE>   6

         (c) The MGP (with the approval of the Conflicts Committee) has elected
not to cause a member of the Partnership Group to pursue such opportunity in
accordance with the procedures set forth in Section 2.3.

     2.3 PROCEDURES.

         (a) In the event that an ARH Entity becomes aware of an opportunity to
purchase a Restricted Business, then, as soon as practicable, such ARH Entity
shall notify the MGP of such opportunity and deliver to the MGP all information
prepared by or on behalf of such ARH Entity relating to such potential purchase.
As soon as practicable but in any event within 30 days after receipt of such
notification and information, the MGP, on behalf of the Partnership, shall
notify the ARH Entity that either (i) the MGP, on behalf of the Partnership, has
elected, with the approval of the Conflicts Committee, not to cause a member of
the Partnership Group to pursue the opportunity to acquire such Restricted
Business, or (ii) the MGP, on behalf of the Partnership, has elected to cause a
member of the Partnership Group to pursue the opportunity to acquire such
Restricted Business. If, at any time, the MGP or its Affiliates abandons such
opportunity (as evidenced in writing by the MGP or such Affiliates following the
request of the ARH entity), the ARH Entity may pursue such opportunity. Any
Restricted Business which is permitted to be purchased by an ARH Entity must be
so purchased (i) within 12 months of the time the ARH Entity becomes able to
pursue such acquisition in accordance with the provisions of this Section 2.3
and (ii) on terms not materially more favorable to the ARH Entity than were
offered to the Partnership. If either of these conditions are not satisfied, the
opportunity must be reoffered to the Partnership.

         (b) In the event that an ARH Entity acquires a Restricted Business as
part of a larger transaction in accordance with the provisions of Section
2.2(b), then, within 30 days of the consummation of such purchase, such ARH
Entity shall notify the MGP of such purchase and offer the Partnership the
opportunity to purchase the Restricted Business constituting a portion of such
purchase and deliver to the MGP all information prepared by or on behalf of or
in the possession of such ARH Entity relating to the Restricted Business. As
soon as practicable but in any event within 30 days after receipt of such
notification, the MGP shall notify the ARH Entity that either (i) the MGP, on
behalf of the Partnership, has elected, with the approval of the Conflicts
Committee, not to cause a member of the Partnership Group to purchase such
Restricted Business, in which event the ARH Entity shall be free to continue to
engage in such Restricted Business, or (ii) the MGP, on behalf of the
Partnership, has elected to cause a member of the Partnership Group to purchase
such Restricted Business, in which event the following procedures shall be
followed:

         (i) The ARH Entity shall submit a good faith offer to the MGP to sell
the Restricted Business (the "Offer") to any member of the Partnership Group
designated by the MGP on the terms and for the consideration stated in the
Offer.

         (ii) The ARH Entity and the MGP shall negotiate in good faith, for 60
days after receipt of such Offer by the MGP, the terms on which the Restricted
Business will be sold to a member of the Partnership Group. The ARH Entity shall
provide all information concerning the

                                      -4-
<PAGE>   7

business, operations and finances of such Restricted Business as may be
reasonably requested by the MGP.

              (A) If the ARH Entity and the MGP agree on such terms within 60
    days after receipt by the MGP of the Offer, a member of the Partnership
    Group shall purchase the Restricted Business on such terms as soon as
    commercially practicable after such agreement has been reached.

              (B) If the ARH Entity and the MGP are unable to agree on the terms
    of a sale during such 60-day period, the ARH Entity shall attempt to sell
    the Restricted Business to a Person that is not an Affiliate of the ARH
    Entity (a "NonAffiliate Purchaser") within nine months of the termination of
    such 60-day period. Any such sale to a NonAffiliate Purchaser must be for a
    purchase price, as determined by the board of directors of ARH Resources,
    not less than 95% of the purchase price last offered by a member of the
    Partnership Group.

         (iii) If, after the expiration of such nine-month period, the ARH
Entity has not sold the Restricted Business to a NonAffiliate Purchaser, it
shall submit another Offer (the "Second Offer") to the MGP within seven days
after the expiration of such nine-month period. The ARH Entity shall provide all
information concerning the business, operations and finances of such Restricted
Business as may be reasonably requested by the MGP.

              (A) If the MGP, with the concurrence of the Conflicts Committee,
    elects not to cause a member of the Partnership Group to pursue the Second
    Offer, the ARH Entity shall be free to continue to engage in such Restricted
    Business.

              (B) If the MGP shall elect to cause a member of the Partnership
    Group to purchase such Restricted Business, then the MGP and the ARH Entity
    shall negotiate the terms of such purchase for 60 days. If the ARH Entity
    and the MGP agree on such terms within 60 days after receipt by the MGP of
    the Second Offer, a member of the Partnership Group shall purchase the
    Restricted Business on such terms as soon as commercially practicable after
    such agreement has been reached.

              (C) If during such 60-day period, no agreement has been reached
    between the ARH Entity and the MGP or a member of the Partnership, the ARH
    Entity and the MGP will engage an independent investment banking firm with a
    national reputation to determine the value of the Restricted Business. Such
    investment banking firm will determine the value of the Restricted Business
    within 30 days and furnish the ARH Entity and the MGP its opinion of such
    value. The ARH Entity and the MGP shall share equally the fees and expenses
    of such investment banking firm. Upon receipt of such opinion, the MGP will
    have the option, subject to the approval of the Conflicts Committee, to (A)
    cause a member of the Partnership Group to purchase the Restricted Business
    for an amount equal to

                                      -5-
<PAGE>   8
     the value determined by such investment banking firm or (B) decline to
     purchase such Restricted Business, in which event the ARH Entity will be
     free to continue to engage in such Restricted Business.

     2.4 TERMINATION. The provisions of this Article II may be terminated by
ARH upon or at any time after a "Change of Control" of ARH or the MGP by written
notice to the MLP. A Change of Control of ARH or the MGP shall be deemed to have
occurred upon the occurrence of one or more of the following events: (i) any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the ARH or
the MGP to any Person or its Affiliates, unless immediately following such sale,
lease, exchange or other transfer such assets are owned, directly or indirectly,
by the ARH Entities, The Beacon Group, L.P. and its affiliated funds or the MGP;
(ii) the consolidation or merger of ARH or the MGP with or into another Person
pursuant to a transaction in which the outstanding Voting Stock of ARH or the
MGP is changed into or exchanged for cash, securities or other property, other
than any such transaction where (a) the outstanding Voting Stock of ARH or the
MGP is changed into or exchanged for Voting Stock of the surviving corporation
or its parent and (b) the holders of the Voting Stock of ARH or the MGP
immediately prior to such transaction own, directly or indirectly, not less than
a majority of the Voting Stock of the surviving corporation or its parent
immediately after such transaction; or (iii) a "person" or "group" (within the
meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) being or becoming the
"beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act)
of more than 50% of all Voting Stock of ARH or the MGP then outstanding, other
than (a) in a merger or consolidation which would not constitute a Change of
Control under clause (ii) above and (b) The Beacon Group, LP and its affiliated
funds.

     2.5 SCOPE OF RESTRICTED BUSINESS PROHIBITION. Except as provided in this
Article II and the Partnership Agreement, each ARH Entity shall be free to
engage in any business activity whatsoever, including those that may be in
direct competition with any Partnership Entity.

     2.6 ENFORCEMENT. The ARH Entities agree and acknowledge that the
Partnership Group does not have an adequate remedy at law for the breach by the
ARH Entities of the covenants and agreements set forth in this Article II, and
that any breach by the ARH Entities of the covenants and agreements set forth in
Article II would result in irreparable injury to the Partnership Group. The ARH
Entities further agree and acknowledge that any member of the Partnership Group
may, in addition to the other remedies which may be available to the Partnership
Group hereunder or under applicable law, file a suit in equity to enjoin the ARH
Entities from such breach, and consent to the issuance of injunctive relief
hereunder.

                                      -6-
<PAGE>   9

                           ARTICLE INDEMNIFICATION III

     3.1 INDEMNIFICATION OF MGP BY SGP. The SGP shall indemnify, defend and
hold harmless the MGP from and against any and all losses, claims, damages and
liabilities (including, without limitation, any legal or other expenses incurred
in connection with defending or investigating any such action or claim)
(collectively, "Losses") relating to the indebtedness outstanding (including
principal and interest) under the Note Purchase Agreement and the Bank Credit
Agreement.

     3.2 INDEMNIFICATION OF PARTNERSHIP ENTITIES BY ARH. In addition to its
indemnification obligations under the Contribution Agreement (as defined in the
MLP Agreement), ARH shall indemnify, defend and hold harmless the Partnership
Entities from and against any Losses that are caused by, arise out of or are
attributable to:

         (a) any and all liabilities associated with the former ownership by
MAPCO Coal Inc. of Martiki Coal Corporation including, but not limited to any
indemnification obligations of any of the Partnership Entities arising under
Section 8.1 of the Martiki Sale Agreement; provided, however, that ARH shall not
be obligated to indemnify the Partnership Entities against any such Losses
unless and until (i) the Partnership Entities have sought to receive
indemnification from Coal Ventures Holding Company, Inc. provided in Section 8.2
of the Martiki Sale Agreement and such relief has been denied by final
adjudication of a court of competent jurisdiction or (ii) the MGP, on behalf of
the MLP, reasonably determines that the Loss for which indemnification is sought
is not within the scope of the indemnification provided in Section 8.2 of the
Martiki Sale Agreement; and

         (b) the former business and operations of MAPCO Coal International
Inc., an entity formed under the laws of Barbados, and Cari International
Mining, Inc., a Delaware corporation, and/or the dissolution of such entities
and the related distribution of their respective assets to their respective
shareholders.

     3.3 INDEMNIFICATION PROCEDURES.

         (a) As used in this Section 3.3: the term "Indemnifying Party" refers
to SGP, in the case of any indemnification obligation arising under Section 3.1,
and ARH, in the case of any indemnification obligation arising under Section
3.2; and the term "Indemnified Party" refers to the MGP, in the case of any
indemnification obligation arising under Section 3.1, and the Partnership
Entities, as applicable, in the case of any indemnification obligation arising
under Section 3.2.

         (b) If any action, suit or proceeding shall be brought against an
Indemnified Party, or if the Indemnified Party should otherwise become aware of
facts giving rise to a claim for indemnification pursuant to Section 3.1 or 3.2,
as applicable, the Indemnified Party shall promptly notify the Indemnifying
Party in writing specifying the nature of and specific basis for such claim.

                                      -7-
<PAGE>   10

         (c) The Indemnifying Party shall have the right to control all aspects
of the defense of (and any counterclaims with respect to) any claims brought
against the Indemnified Party that are covered by the indemnification set forth
in Section 3.1 or 3.2, as applicable, including, without limitation, the
selection of counsel, determination of whether to appeal any decision of any
court and the settling of any such matter or any issues relating thereto;
provided, however, that no such settlement shall be entered into without the
consent of the Indemnified Party unless it includes a full release of the
Indemnified Party from such matter or issues, as the case may be.

         (d) The Indemnified Party agree, at their own cost and expense, to
cooperate fully with the Indemnifying Party with respect to all aspects of the
defense of any claims covered by the indemnification set forth in Section 3.1 or
3.2, as applicable, including, without limitation, the prompt furnishing to the
Indemnifying Party of any correspondence or other notice relating thereto that
the Indemnified Party may receive, permitting the name(s) of the Indemnified
Party to be utilized in connection with such defense, the making available to
the Indemnifying Party of any files, records or other information of the
Indemnified Party that the Indemnifying Party considers relevant to such defense
and the making available to the Indemnifying Party of any employees of the
Indemnified Party; provided, however, that in connection therewith the
Indemnifying Party agrees to use reasonable efforts to minimize the impact
thereof on the operations of such Indemnified Party. In no event shall the
obligation of the Indemnified Party to cooperate with the Indemnifying Party as
set forth in the immediately preceding sentence be construed as imposing upon
the Indemnified Party an obligation to hire and pay for counsel in connection
with the defense of any claims covered by the indemnification set forth in this
Article III; provided, however, that the Indemnified Party may, at their own
option, cost and expense, hire and pay for counsel in connection with any such
defense. The Indemnifying Party agrees to keep any such counsel hired by the
Indemnified Party reasonably informed as to the status of any such defense, but
the Indemnifying Party shall have the right to retain sole control over such
defense.

         (e) In determining the amount of any loss, liability or expense for
which any Indemnified Party is entitled to indemnification under this Article
III, the gross amount thereof will be reduced by any insurance proceeds realized
or to be realized by such Indemnified Party, and such correlative insurance
benefit shall be net of any insurance premium that becomes due as a result of
such claim.

                              ARTICLE ASSIGNMENT IV

     4.1 ASSIGNMENT OF RIGHTS BY PARTNERSHIP ENTITIES TO ARH . The Partnership
Entities hereby irrevocably assign, transfer and convey to ARH:

         (a) all rights, credits, claims, judgments and awards that may be
received by the Partnership Entities under the pending litigation styled Arch
Mineral Corporation ,et al. v. ICI Explosive USA, Inc., et al., U.S. District
Court, S. D. Indiana, Indianapolis Division, Case No. IP96

                                      -8-
<PAGE>   11

- 0754 C - LT#C00376, in which case certain predecessors of the Partnership
Entities are plaintiffs, as more completely identified in paragraph 1 of
Schedule 2.1(a) of the Martiki Sale Agreement; and

         (b) all right, title, benefits and interest of such Partnership
Entities to any as of yet uncollected cash and receivables set forth as excluded
assets in paragraphs 5(a), 5(b), 5(c) and 5(d) of Schedule 2.1(a) of the Martiki
Sale Agreement.

                                   ARTICLE V

                                 MISCELLANEOUS

     5.1 CHOICE OF LAW; SUBMISSION TO JURISDICTION . This Agreement shall be
subject to and governed by the laws of the State of Delaware, excluding any
conflicts-of-law rule or principle that might refer the construction or
interpretation of this Agreement to the laws of another state.

     5.2 NOTICE . All notices or requests or consents provided for or permitted
to be given pursuant to this Agreement must be in writing and must be given by
depositing same in the United States mail, addressed to the Person to be
notified, postpaid, and registered or certified with return receipt requested or
by delivering such notice in person or by telecopier or telegram to such party.
Notice given by personal delivery or mail shall be effective upon actual
receipt. Notice given by telegram or telecopier shall be effective upon actual
receipt if received during the recipient's normal business hours, or at the
beginning of the recipient's next business day after receipt if not received
during the recipient's normal business hours. All notices to be sent to a party
pursuant to this Agreement shall be sent to or made at the address set forth
below such party's signature to this Agreement, or at such other address as such
party may stipulate to the other parties in the manner provided in this Section
5.2.

     5.3 ENTIRE AGREEMENT; SUPERSEDURE . This Agreement constitutes the entire
agreement of the parties relating to the matters contained herein, superseding
all prior contracts or agreements, whether oral or written, relating to the
matters contained herein.

     5.4 EFFECT OF WAIVER OR CONSENT . No waiver or consent, express or implied,
by any party to or of any breach or default by any Person in the performance by
such Person of its obligations hereunder shall be deemed or construed to be a
consent or waiver to or of any other breach or default in the performance by
such Person of the same or any other obligations of such Person hereunder.
Failure on the part of a party to complain of any act of any Person or to
declare any Person in default, irrespective of how long such failure continues,
shall not constitute a waiver by such party of its rights hereunder until the
applicable statute of limitations period has run.

     5.5 AMENDMENT OR MODIFICATION . This Agreement may be amended or modified
from time to time only by the written agreement of all the parties hereto;
provided, however, that the MLP may not, without the prior approval of the
Conflicts Committee, agree to any amendment or modification of this Agreement
that, in the reasonable discretion of the MGP, will adversely affect the holders
of

                                      -9-
<PAGE>   12

Common Units. Each such instrument shall be reduced to writing and shall be
designated on its face an "Amendment" or an "Addendum" to this Agreement.

     5.6 ASSIGNMENT. No party shall have the right to assign its rights or
obligations under this Agreement without the consent of the other parties
hereto.

     5.7 COUNTERPARTS. This Agreement may be executed in any number of
counterparts with the same effect as if all signatory parties had signed the
same document. All counterparts shall be construed together and shall constitute
one and the same instrument.

     5.8 SEVERABILITY. If any provision of this agreement or the application
thereof to any person or circumstance shall be held invalid or unenforceable to
any extent, the remainder of this agreement and the application of such
provision to other persons or circumstances shall not be affected thereby and
shall be enforced to the greatest extent permitted by law.

     5.9 GENDER, PARTS, ARTICLES AND SECTIONS. Whenever the context requires,
the gender of all words used in this Agreement shall include the masculine,
feminine and neuter, and the number of all words shall include the singular and
plural. All references to Article numbers and Section numbers refer to Parts,
Articles and Sections of this Agreement, unless the context otherwise requires.

     5.10 FURTHER ASSURANCES. In connection with this Agreement and all
transactions contemplated by this Agreement, each signatory party hereto agrees
to execute and deliver such additional documents and instruments and to perform
such additional acts as may be necessary or appropriate to effectuate, carry out
and perform all of the terms, provisions and conditions of this Agreement and
all such transactions.

     5.11 WITHHOLDING OR GRANTING OF CONSENT. Each party may, with respect to
any consent or approval that it is entitled to grant pursuant to this Agreement,
grant or withhold such consent or approval in its sole and uncontrolled
discretion, with or without cause, and subject to such conditions as it shall
deem appropriate.

     5.12 LAWS AND REGULATIONS. Notwithstanding any provision of this
Agreement to the contrary, no party hereto shall be required to take any act, or
fail to take any act, under this Agreement if the effect thereof would be to
cause such party to be in violation of any applicable law, statute, rule or
regulation.

     5.13 NEGOTIATION OF RIGHTS OF LIMITED PARTNERS, ASSIGNEES, AND THIRD
PARTIES. The provisions of this Agreement are enforceable solely by the parties
to this Agreement, and no Limited Partner, Assignee or other Person shall have
the right, separate and apart from the MLP, to enforce any provision of this
Agreement or to compel any party to this Agreement to comply with the terms of
this Agreement.

                                      -10-
<PAGE>   13

     IN WITNESS WHEREOF, the parties have executed this Agreement on, and
effective as of, the Closing Date.

                           ALLIANCE RESOURCE HOLDINGS, INC.

                           By:       /s/ THOMAS L. PEARSON
                              ------------------------------------------
                               Name:     Thomas L. Pearson
                               Title:    Senior Vice President -- Law and
                                         Administration, General Counsel and
                                         Secretary

                           Address for Notice:     1717 South Boulder Avenue
                                                   Tulsa, Oklahoma 74119

                           Telecopy Number:        (918) 295-7361

                           ALLIANCE RESOURCE PARTNERS, L.P.

                           By: ALLIANCE RESOURCE GP, LLC, its general
                               partner

                           By:     /s/ THOMAS L. PEARSON
                              ----------------------------------------
                               Name:   Thomas L. Pearson
                               Title:  Senior Vice President -- Law and
                                       Administration, General Counsel and
                                       Secretary

                           Address for Notice:     1717 South Boulder Avenue
                                                   Tulsa, Oklahoma 74119

                           Telecopy Number:        (918) 295-7361

                                      -11-
<PAGE>   14

                           ALLIANCE RESOURCE MANAGEMENT GP, LLC

                           By:     /s/ THOMAS L. PEARSON
                              ------------------------------------------
                               Name:   Thomas L. Pearson
                               Title:  Senior Vice President -- Law and
                                       Administration, General Counsel and
                                       Secretary

                           Address for Notice:     1717 South Boulder Avenue
                                                   Tulsa, Oklahoma 74119

                           Telecopy Number:        (918) 295-7361

                           ALLIANCE RESOURCE GP, LLC

                           By:     /s/ THOMAS L. PEARSON
                              ------------------------------------------
                               Name:   Thomas L. Pearson
                               Title:  Senior Vice President -- Law and
                                       Administration, General Counsel and
                                       Secretary

                              Address for Notice:  1717 South Boulder Avenue
                                                   Tulsa, Oklahoma 74119

                              Telecopy Number:     (918) 295-7361

                                      -12-<PAGE>   1
                                                                   EXHIBIT 10.11

                      ALLIANCE RESOURCE MANAGEMENT GP, LLC
                          2000 LONG-TERM INCENTIVE PLAN
                                  (AS AMENDED)

         SECTION 1.   Purpose of the Plan.

         The Alliance Resource Management GP, LLC Long-Term Incentive Plan (the
"Plan") is intended to promote the interests of Alliance Resource Partners,
L.P., a Delaware limited partnership (the "Partnership"), by providing to
employees and directors of Alliance Resource Management GP, LLC (the "Company")
and its Affiliates who perform services for the Partnership incentive
compensation awards for superior performance that are based on Units. The Plan
is also contemplated to enhance the ability of the Company and its Affiliates to
attract and retain the services of individuals who are essential for the growth
and profitability of the Partnership and to encourage them to devote their best
efforts to the business of the Partnership, thereby advancing the interests of
the Partnership and its partners.

         SECTION 2.   Definitions.

         As used in the Plan, the following terms shall have the meanings set
forth below:

         "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly through one or more intermediaries controls, is
controlled by or is under common control with, the Person in question. As used
herein, the term "control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract or
otherwise.

         "Award" means an Option or Restricted Unit granted under the Plan, and
shall include any tandem DERs granted with respect to such Award.

         "Board" means the Board of Directors of the Company.

         "Cause" means:

                  (i)   fraud or embezzlement on the part of the Participant;

                  (ii)  conviction of or the entry of a plea of nolo contendere
         by the Participant to any felony;

                  (iii) gross insubordination or a material breach of, or the
         willful failure or refusal by the Participant to perform and discharge
         his duties, responsibilities or obligations (other than by reason of
         disability or death) that is not corrected within thirty

<PAGE>   2

         (30) days following written notice thereof to the Participant, such
         notice to state with specificity the nature of the breach, failure or
         refusal; or

                  (iv) any act of willful misconduct by the Participant which
         (A) is intended to result in substantial personal enrichment of the
         Participant at the expense of the Partnership, the Company or any of
         their affiliates or (B) has a material adverse impact on the business
         or reputation of the Partnership, the Company or any of their
         affiliates (such determination to be made by the Partnership, the
         Company or any of their affiliates in the good faith exercise of their
         reasonable judgment).

         "Change in Control" means, and shall be deemed to have occurred upon
the occurrence of one or more of the following events: (i) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Company or the
Partnership to any Person or its Affiliates, unless immediately following such
sale, lease, exchange or other transfer such assets are owned, directly or
indirectly, by The Beacon Group, L.P. and its affiliated funds or the Company;
(ii) the consolidation or merger of the Company with or into another Person
pursuant to a transaction in which the outstanding voting interests of the
Company is changed into or exchanged for cash, securities or other property,
other than any such transaction where (a) the outstanding voting interests of
the Company is changed into or exchanged for voting stock or interests of the
surviving corporation or its parent and (b) the holders of the voting interests
of the Company immediately prior to such transaction own, directly or
indirectly, not less than a majority of the voting stock or interests of the
surviving corporation or its parent immediately after such transaction; or (iii)
a "person" or "group" (within the meaning of Sections 13(d) or 14(d)(2) of the
Exchange Act) being or becoming the "beneficial owner" (as defined in Rules
13d-3 and 13d-5 under the Exchange Act) of more than 50% of all voting interests
of the Company then outstanding, other than (a) in a merger or consolidation
which would not constitute a Change of Control under clause (ii) above and (b)
The Beacon Group, LP and its affiliated funds.

         "Committee" means the Compensation Committee of the Board or such other
committee of the Board appointed to administer the Plan.

         "DER" means a contingent right, granted in tandem with a specific
Restricted Unit, to receive an amount in cash equal to the cash distributions
made by the Partnership with respect to a Unit during the period such Restricted
Unit is outstanding.

         "Director" means a "non-employee director" of the Company, as defined
in Rule 16b-3.

         "Employee" means any employee of the Company or an Affiliate, as
determined by the Committee.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

<PAGE>   3
         "Fair Market Value" means the closing sales price of a Unit on the
applicable date (or if there is no trading in the Units on such date, on the
next preceding date on which there was trading) as reported in The Wall Street
Journal (or other reporting service approved by the Committee). In the event
Units are not publicly traded at the time a determination of fair market value
is required to be made hereunder, the determination of fair market value shall
be made in good faith by the Committee.

         "Good Reason," which shall mean:

                  (i)   a reduction in the Participant's Base Salary;

                  (ii)  failure to pay the Participant any compensation due
         under an employment agreement, if any;

                  (iii) failure to continue to provide benefits substantially
         similar to those then enjoyed by the Participant unless the
         Partnership, the Company or their affiliates provide aggregate benefits
         equivalent to those then in effect;

                  (iv) failure to continue a compensation plan or to continue
         the Participant's participation in a plan on a basis not materially
         less favorable to the Participant, subject to the power of the
         Partnership, the Company or their affiliates to amend such plans in
         their reasonable discretion;

                  (v) the Partnership, the Company or their affiliates purported
         termination of the Participant's employment for Cause or disability not
         pursuant to a procedure indicating the specific provision of the
         definition of Cause contained in this Plan as the basis for such
         termination of employment;

         The Participant may not terminate for Good Reason unless he has given
written notice delivered to the Partnership, the Company or their affiliates, as
appropriate, of the action or inaction giving rise to Good Reason, and if such
action or inaction is not corrected within thirty (30) days thereafter, such
notice to state with specificity the nature of the breach, failure or refusal.

         "Option" means an option to purchase Units granted under the Plan.

         "Participant" means any Employee or Director granted an Award under the
Plan.

         "Partnership Agreement" means the Amended and Restated Agreement of
Limited Partnership of Alliance Resource Partners, L.P.

<PAGE>   4
         "Person" means an individual or a corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization,
association, government agency or political subdivision thereof or other entity.

         "Restricted Period" means the period established by the Committee with
respect to an Award during which the Award either remains subject to forfeiture
or is not exercisable by or payable to the Participant. Notwithstanding anything
in the Plan to the contrary, the Restricted Period with respect to any Award
granted to an Employee may not terminate prior to the end of the Subordination
Period (as defined in the Partnership Agreement).

         "Restricted Unit" means a phantom unit granted under the Plan which
upon or following vesting entitles the Participant to receive a Unit or an
equivalent amount of cash.

         "Rule 16b-3" means Rule 16b-3 promulgated by the SEC under the Exchange
Act, or any successor rule or regulation thereto as in effect from time to time.

         "SEC" means the Securities and Exchange Commission, or any successor
thereto.

         "Unit" means a Common Unit of the Partnership.

         SECTION 3.  Administration.

         The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of the members of the
Committee who are present at any meeting thereof at which a quorum is present,
or acts unanimously approved by the members of the Committee in writing, shall
be the acts of the Committee. Subject to the following, the Committee, in its
sole discretion, may delegate any or all of its powers and duties under the
Plan, including the power to grant Awards under the Plan, to the Chief Executive
Officer of the Company, subject to such limitations on such delegated powers and
duties as the Committee may impose. Upon any such delegation all references in
the Plan to the "Committee", other than in Section 7, shall be deemed to include
the Chief Executive Officer; provided, however, that such delegation shall not
limit the Chief Executive Officer's right to receive Awards under the Plan.
Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards
to, or take any action with respect to any Award previously granted to, a person
who is an officer subject to Rule 16b-3 or a member of the Board. Subject to the
terms of the Plan and applicable law, and in addition to other express powers
and authorizations conferred on the Committee by the Plan, the Committee shall
have full power and authority to: (i) designate Participants; (ii) determine the
type or types of Awards to be granted to a Participant; (iii) determine the
number of Units to be covered by Awards; (iv) determine the terms and conditions
of any Award; (v) determine whether, to what extent, and under what
circumstances Awards may be settled, exercised, canceled, or forfeited;
(vi) interpret and administer the Plan and any instrument or agreement relating
to an Award made under the Plan; (vii) establish, amend, suspend, or waive such
rules and regulations and appoint such agents as it shall deem appropriate for
the proper administration of the Plan; and (viii) make any other determination
and take any other action that the Committee

<PAGE>   5

deems necessary or desirable for the administration of the Plan. Unless
otherwise expressly provided in the Plan, all designations, determinations,
interpretations, and other decisions under or with respect to the Plan or any
Award shall be within the sole discretion of the Committee, may be made at any
time and shall be final, conclusive, and binding upon all Persons, including the
Company, the Partnership, any Affiliate, any Participant, and any beneficiary of
any Award.

         SECTION 4.  Units

         (a) Units Available. Subject to adjustment as provided in Section 4(c),
the number of Units with respect to which Options and Restricted Units may be
granted under the Plan is 600,000. If any Option or Restricted Unit is forfeited
or otherwise terminates or is canceled without the delivery of Units, then the
Units covered by such Award, to the extent of such forfeiture, termination or
cancellation, shall again be Units with respect to which Options or Restricted
Units may be granted.

         (b) Sources of Units Deliverable Under Awards. Any Units delivered
pursuant to an Award shall consist, in whole or in part, of Units acquired in
the open market, from any Affiliate, the Partnership or any other Person, or any
combination of the foregoing, as determined by the Committee in its discretion.

         (c) Adjustments. In the event that the Committee determines that any
distribution (whether in the form of cash, Units, other securities, or other
property), recapitalization, split, reverse split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, or exchange of Units
or other securities of the Partnership, issuance of warrants or other rights to
purchase Units or other securities of the Partnership, or other similar
transaction or event affects the Units such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or
all of (i) the number and type of Units (or other securities or property) with
respect to which Awards may be granted, (ii) the number and type of Units (or
other securities or property) subject to outstanding Awards, and (iii) the grant
or exercise price with respect to any Award or, if deemed appropriate, make
provision for a cash payment to the holder of an outstanding Award; provided,
that the number of Units subject to any Award shall always be a whole number.

         SECTION 5.   Eligibility.

         Any Employee or Director shall be eligible to be designated a
Participant and receive an Award under the Plan.

         SECTION 6.   Awards.

         (a) Options. The Committee shall have the authority to determine the
Employees and Directors to whom Options shall be granted, the number of Units to
be covered by each Option,

<PAGE>   6

the purchase price therefor and the conditions and limitations applicable to the
exercise of the Option, including the following terms and conditions and such
additional terms and conditions, as the Committee shall determine, that are not
inconsistent with the provisions of the Plan.

                  (i)  Exercise Price. The purchase price per Unit purchasable
         under an Option shall be determined by the Committee at the time the
         Option is granted and may be more or less than its Fair Market Value
         as of the date of grant.

                  (ii) Time and Method of Exercise. The Committee shall
         determine the Restricted Period, i.e., the time or times at which an
         Option may be exercised in whole or in part, and the method or methods
         by which payment of the exercise price with respect thereto may be made
         or deemed to have been made which may include, without limitation,
         cash, check acceptable to the Company, a "cashless-broker" exercise
         through procedures approved by the Company, other securities or other
         property, a note from the Participant in a form acceptable to the
         Company, or any combination thereof, having a Fair Market Value on the
         exercise date equal to the relevant exercise price.

                  (iii) Term. Subject to earlier termination as provided in the
         grant agreement or the Plan, each Option shall expire on the 10th
         anniversary of its date of grant.

                  (iv) Forfeiture. Except as otherwise provided in the terms of
         the Option grant, upon termination of a Participant's employment with
         the Company and its Affiliates or membership on the Board, whichever is
         applicable, for any reason during the applicable Restricted Period, all
         Options shall be forfeited by the Participant. The Committee may, in
         its discretion, waive in whole or in part such forfeiture with respect
         to a Participant's Options.

         (b) Restricted Units. The Committee shall have the authority to
determine the Employees and Directors to whom Restricted Units shall be granted,
the number of Restricted Units to be granted to each such Participant, the
duration of the Restricted Period (if any), the conditions under which the
Restricted Units may become vested (which may be immediate upon grant) or
forfeited, and such other terms and conditions as the Committee may establish
with respect to such Awards, including whether DERs are granted with respect to
such Restricted Units.

                  (i) DERs. To the extent provided by the Committee, in its
         discretion, a grant of Restricted Units may include a tandem DER grant,
         which may provide that such DERs shall be paid directly to the
         Participant, be credited to a bookkeeping account (with or without
         interest in the discretion of the Committee) subject to the same
         vesting restrictions as the tandem Award, or be subject to such other
         provisions or restrictions as determined by the Committee in its
         discretion. Notwithstanding the foregoing however, DERs shall not be
         granted with respect to any Award prior to the end of the Subordination
         Period.

<PAGE>   7

                  (ii) Forfeiture. Except as otherwise provided in the terms of
         the Restricted Units grant, upon termination of a Participant's
         employment with the Company and its Affiliates or membership on the
         Board, whichever is applicable, for any reason during the applicable
         Restricted Period, all Restricted Units shall be forfeited by the
         Participant. The Committee may, in its discretion, waive in whole or in
         part such forfeiture with respect to a Participant's Restricted Units.

                  (iii) Lapse of Restrictions. Upon or following the vesting of
         each Restricted Unit, the Participant shall be entitled to receive from
         the Company one Unit or cash equal to the Fair Market Value of one
         Unit, as determined by the Committee, subject to the provisions of
         Section 8(b).

         (c)      General.

                  (i)  Awards May Be Granted Separately or Together. Awards may,
         in the discretion of the Committee, be granted either alone or in
         addition to, in tandem with, or in substitution for any other Award
         granted under the Plan or any award granted under any other plan of the
         Company or any Affiliate. Awards granted in addition to or in tandem
         with other Awards or awards granted under any other plan of the Company
         or any Affiliate may be granted either at the same time as or at a
         different time from the grant of such other Awards or awards.

                  (ii) Limits on Transfer of Awards.

                           (A) Except as provided in (C) below, each Option
                  shall be exercisable only by the Participant during the
                  Participant's lifetime, or by the person to whom the
                  Participant's rights shall pass by will or the laws of descent
                  and distribution.

                           (B) Except as provided in (C) below, no Award and no
                  right under any such Award may be assigned, alienated,
                  pledged, attached, sold or otherwise transferred or encumbered
                  by a Participant and any such purported assignment,
                  alienation, pledge, attachment, sale, transfer or encumbrance
                  shall be void and unenforceable against the Company or any
                  Affiliate.

                           (C) To the extent specifically provided by the
                  Committee with respect to an Award, an Award may be
                  transferred by a Participant without consideration to
                  immediate family members or related family trusts, limited
                  partnerships or similar entities or on such terms and
                  conditions as the Committee may from time to time establish.
                  In addition, Awards may be transferred by will and the laws of
                  descent and distribution.

                  (iii) Term of Awards. The term of each Award shall be for such
         period as may be determined by the Committee.

<PAGE>   8

                  (iv)  Unit Certificates. All certificates for Units or other
         securities of the Partnership delivered under the Plan pursuant to any
         Award or the exercise thereof shall be subject to such stop transfer
         orders and other restrictions as the Committee may deem advisable
         under the Plan or the rules, regulations, and other requirements of
         the SEC, any stock exchange upon which such Units or other securities
         are then listed, and any applicable federal or state laws, and the
         Committee may cause a legend or legends to be put on any such
         certificates to make appropriate reference to such restrictions.

                  (v)   Consideration for Grants.  Awards may be granted for no
         cash consideration or for such consideration as the Committee
         determines.

                  (vi)  Delivery of Units or other Securities and Payment by
         Participant of Consideration. Notwithstanding anything in the Plan or
         any grant agreement to the contrary, delivery of Units pursuant to the
         exercise or vesting of an Award may be deferred for any period during
         which, in the good faith determination of the Committee, the Company is
         not reasonably able to obtain Units to deliver pursuant to such Award
         without violating the rules or regulations of any applicable law or
         securities exchange. No Units or other securities shall be delivered
         pursuant to any Award until payment in full of any amount required to
         be paid pursuant to the Plan or the applicable Award grant agreement
         (including, without limitation, any exercise price or tax withholding)
         is received by the Company. Such payment may be made by such method or
         methods and in such form or forms as the Committee shall determine,
         including, without limitation, cash, other Awards, withholding of
         Units, cashless-broker exercises with simultaneous sale, or any
         combination thereof; provided that the combined value, as determined by
         the Committee, of all cash and cash equivalents and the Fair Market
         Value of any such Units or other property so tendered to the Company,
         as of the date of such tender, is at least equal to the full amount
         required to be paid to the Company pursuant to the Plan or the
         applicable Award agreement.

                  (vii) Change in Control. Upon a Change in Control, all Awards
         shall automatically vest and become payable or exercisable, as the case
         may be, in full. In this regard, all Restricted Periods shall terminate
         and all performance criteria, if any, shall be deemed to have been
         achieved at the maximum level. Notwithstanding the foregoing however,
         the Restricted Period may not terminate prior to the end of the
         Subordination Period.

                  (viii) Sale of Significant Assets. In the event the
         Partnership sells or otherwise dispose of a significant portion of the
         assets under its control, (such significance to be determined by action
         of the Board of the Company in its sole discretion) and as a
         consequence of such disposition (a) a Participant's employment is
         terminated by the Partnership, the Company or their affiliates without
         Cause or by the Participant for Good Reason or (b) as a result of such
         sale or disposition, the Participant's employer shall no longer be the
         Partnership, the Company or one of their affiliates, then all of such

<PAGE>   9

         Participant's Awards shall automatically vest and become payable or
         exercisable, as the case may be, in full. In this regard, all
         Restricted Periods shall terminate and all performance criteria, if
         any, shall be deemed to have been achieved at the maximum level.
         Notwithstanding the foregoing however, the Restricted Period may not
         terminate prior to the end of the Subordination Period.

         SECTION 7.   Amendment and Termination.

         Except to the extent prohibited by applicable law and unless otherwise
expressly provided in an Award agreement or in the Plan:

                  (a) Amendments to the Plan. Except as required by applicable
         law or the rules of the principal securities exchange on which the
         Units are traded and subject to Section 7(b) below, the Board or the
         Committee may amend, alter, suspend, discontinue, or terminate the Plan
         in any manner, including increasing the number of Units available for
         Awards under the Plan, without the consent of any partner, Participant,
         other holder or beneficiary of an Award, or other Person; provided,
         however, that no amendment may be made without the approval of a Unit
         Majority (as defined in the Partnership Agreement) that would either
         accelerate, with respect to an Award granted to an Employee, vesting to
         a date prior to the end of the Subordination Period or permit DERs to
         be granted prior to the end of the Subordination Period.

                  (b) Amendments to Awards. The Committee may waive any
         conditions or rights under, amend any terms of, or alter any Award
         theretofore granted, provided no change, other than pursuant to Section
         7(c), in any Award shall materially reduce the benefit to Participant
         without the consent of such Participant.

                  (c) Adjustment of Awards Upon the Occurrence of Certain
         Unusual or Nonrecurring Events. The Committee is hereby authorized to
         make adjustments in the terms and conditions of, and the criteria
         included in, Awards in recognition of unusual or nonrecurring events
         (including, without limitation, the events described in Section 4(c) of
         the Plan) affecting the Partnership or the financial statements of the
         Partnership, or of changes in applicable laws, regulations, or
         accounting principles, whenever the Committee determines that such
         adjustments are appropriate in order to prevent dilution or enlargement
         of the benefits or potential benefits intended to be made available
         under the Plan.

         SECTION 8.   General Provisions.

         (a) No Rights to Award. No Person shall have any claim to be granted
any Award under the Plan, and there is no obligation for uniformity of treatment
of participants. The terms and conditions of awards need not be the same with
respect to each recipient.

<PAGE>   10
         (b) Withholding. The Company or any Affiliate is authorized to withhold
from any Award, from any payment due or transfer made under any Award or from
any compensation or other amount owing to a Participant the amount (in cash,
Units, other securities, Units that would otherwise be issued pursuant to such
Award or other property) of any applicable taxes payable in respect of the grant
of an Award, its exercise, the lapse of restrictions thereon, or any payment or
transfer under an Award or under the Plan and to take such other action as may
be necessary in the opinion of the Company to satisfy all obligations for the
payment of such taxes.

         (c) No Right to Employment. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate or to remain on the Board, as applicable. Further, the
Company or an Affiliate may at any time dismiss a Participant from employment,
free from any liability or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any Award agreement.

         (d) Governing Law. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Delaware and applicable federal law.

         (e) Severability. If any provision of the Plan or any award is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, person or award and the remainder of the Plan
and any such Award shall remain in full force and effect.

         (f) Other Laws. The Committee may refuse to issue or transfer any Units
or other consideration under an Award if, in its sole discretion, it determines
that the issuance or transfer or such Units or such other consideration might
violate any applicable law or regulation, the rules of the principal securities
exchange on which the Units are then traded, or entitle the Partnership or an
Affiliate to recover the same under Section 16(b) of the Exchange Act, and any
payment tendered to the Company by a Participant, other holder or beneficiary in
connection with the exercise of such Award shall be promptly refunded to the
relevant Participant, holder or beneficiary.

         (g) No Trust or Fund Created. Neither the Plan nor any award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any participating Affiliate and a
Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any participating Affiliate pursuant to
an award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

<PAGE>   11
         (h) No Fractional Units. No fractional Units shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Units or whether such fractional Units or any rights
thereto shall be canceled, terminated, or otherwise eliminated.

         (i) Headings. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the Plan or any provision thereof.

         (j) Facility Payment. Any amounts payable hereunder to any person under
legal disability or who, in the judgment of the Committee, is unable to properly
manage his financial affairs, may be paid to the legal representative of such
person, or may be applied for the benefit of such person in any manner which the
Committee may select, and the Company shall be relieved of any further liability
for payment of such amounts.

         (k) Gender and Number. Words in the masculine gender shall include the
feminine gender, the plural shall include the singular and the singular shall
include the plural.

         SECTION 9.   Term of the Plan.

         The Plan shall be effective on the date of its approval by the Board
and shall continue until the date terminated by the Board or Units are no longer
available for grants of Awards under the Plan, whichever occurs first. However,
unless otherwise expressly provided in the Plan or in an applicable Award
Agreement, any Award granted prior to such termination, and the authority of the
Board or the Committee to amend, alter, adjust, suspend, discontinue, or
terminate any such Award or to waive any conditions or rights under such Award,
shall extend beyond such termination date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]