Document:

Revolving Credit Agreement

 Exhibit 10.2 
  

 $5,000,000 
 REVOLVING CREDIT AGREEMENT 
 Between 
 Alliance Holdings GP, L.P., 
 as Borrower 
 and 
 C-Holdings, LLC, 
 as Lender 
  

 Dated as of May 15, 2006 
  

 

 TABLE OF CONTENTS 
  

							
	 	  	 Page No.

	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS; AMENDMENT AND RESTATEMENT
	  	1
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	Time Period Computations	  	3
		
	 ARTICLE II GENERAL PROVISIONS OF REVOLVING CREDIT FACILITY
	  	3
	 Section 2.1
	  	The Revolving Loans	  	3
		  	(a)	  	Revolving Loan Borrowings	  	3
		  	(b)	  	Recording of Loans	  	3
		  	(c)	  	Reduction in Revolving Loan Commitment	  	3
	 Section 2.2
	  	Revolving Loan Borrowing Procedures	  	3
		  	(a)	  	Notice of Revolving Borrowing	  	3
		  	(b)	  	Making of Revolving Loans	  	4
		  	(c)	  	Optional Termination or Reduction in Revolving Loan Commitment	  	
		
	 ARTICLE III INTEREST, FEES AND REPAYMENT
	  	4
	 Section 3.1
	  	Interest Rate on the Revolving Loans	  	4
	 Section 3.2
	  	Interest after Due Date	  	4
	 Section 3.3
	  	Payment and Computations	  	4
		  	(a)	  	Payments	  	4
		  	(b)	  	Computations of Interest	  	4
		  	(c)	  	Interest Payment Date	  	5
	 Section 3.4
	  	Payment at Termination Date	  	5
	 Section 3.5
	  	Optional Prepayments of Revolving Loans	  	5
	 Section 3.6
	  	Commitment Fee	  	5
		
	 ARTICLE IV CONDITIONS PRECEDENT TO REVOLVING LOANS
	  	5
	 Section 4.1
	  	Conditions Precedent to Revolving Loans	  	5
		  	(i)	  	No Event of Default	  	5
		  	(ii)	  	Total Outstanding Revolving Loans	  	5
		  	(iii)	  	Borrowing Notice Certificate	  	5
		
	 ARTICLE V COVENANTS
	  	6
	 Section 5.1
	  	Proceeds	  	6
	 Section 5.2
	  	Seniority	  	6
		
	 ARTICLE VI EVENTS OF DEFAULT
	  	6
	 Section 6.1
	  	Events of Default	  	6

  

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	 ARTICLE VII MISCELLANEOUS
	  	8
	 Section 7.1
	  	Amendments and Waivers; Cumulative Remedies	  	8
	 Section 7.2
	  	Notices	  	8
	 Section 7.3
	  	Governing Law; Jury Trial Waiver	  	8
	 Section 7.4
	  	Successors and Assigns.	  	9
		  	(a)	  	Successors and Assigns	  	9
		  	(b)	  	Assignments	  	9
	 Section 7.5
	  	Affirmative Rate of Interest Permitted by Law	  	9
	 Section 7.6
	  	Costs and Expenses	  	9
	 Section 7.7
	  	Indemnification	  	9
	 Section 7.8
	  	Exculpation	  	10
	 Section 7.9
	  	Integration	  	10
	 Section 7.10
	  	Severability	  	10
	 Section 7.11
	  	Counterparts	  	10
	 Section 7.12
	  	Headings, Bold Type and Table of Contents	  	10

  

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 REVOLVING CREDIT AGREEMENT 
 This REVOLVING CREDIT AGREEMENT, dated as of May 15, 2006 (the “Agreement”), is between ALLIANCE HOLDINGS GP, L.P., a Delaware
limited partnership (the “Borrower”), and C-HOLDINGS, LLC, a Delaware limited liability company (the “Lender”). 
 WITNESSETH: 
 WHEREAS, the Borrower desires to obtain a revolving credit facility from the
Lender in an amount of up to $5,000,000, and the Lender desires to make available to the Borrower such revolving credit facility, in each case upon the terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the Borrower and the Lender hereby agree as
follows: 
 ARTICLE I 
 DEFINITIONS AND ACCOUNTING TERMS; AMENDMENT AND RESTATEMENT 
 Section 1.1 Definitions. As used in this Agreement, and
unless the context requires a different meaning, the following terms shall have the meanings indicated (such meanings to be, when appropriate, equally applicable to both the singular and plural forms of the terms defined): 
 “Agreement” has the meaning specified in the preamble hereof. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code or any similar or successor federal law for the
relief of debtors, as the same may be amended from time to time. 
 “Borrower” has the meaning
specified in the preamble of this Agreement. 
 “Borrowing Notice” has the meaning specified in
Section 2.2(a) hereof. 
 “Business Day” means any day on which commercial banks are open for
business (and not required or authorized by law to close) in Tulsa, Oklahoma. 
 “Commitment Fee” has
the meaning specified in Section 3.6 hereof. 
 “Default Rate” means the rate of interest
applicable from time to time as specified under Section 3.3 hereof. 
 “Dollars”,
“U.S.$” and the sign “$” mean such coin or currency of the United States of America as at the time shall constitute legal tender for the payment of public and private debts. 

 “Event of Default” has the meaning specified in Section 6.1
hereof. 
 “Funding Date” shall mean the date on which any loan shall be made by a Lender to the
Borrower hereunder. 
 “Indemnitee” has the meaning specified in Section 7.7 hereof. 

“Interest Rate” has the meaning specified in Section 3.1 hereof. 
 “Lender” has the meaning specified in the preamble of this Agreement. 
 “LIBOR” means, with respect to any calendar month while this Agreement remains in effect or any Obligations owing
hereunder shall remain unpaid, the London interbank offered rate for Dollar deposits for a 30-day interest period as quoted on the first Business Day of such calendar month in the Wall Street Journal or, if not quoted therein on such date, as
quoted in the Wall Street Journal on the immediately preceding Business Day; provided, however, that if LIBOR cannot be determined by reference to the Wall Street Journal, then LIBOR shall be determined by reference to
another publicly available source or service (such as Bloomberg), as reasonably selected by the Lender, that displays LIBOR rates for comparable periods as of comparable dates. The LIBOR rate determined pursuant to this definition for any calendar
month shall remain in effect for such calendar month from the first day of such calendar month to the last day of such calendar month. 
 “Material Adverse Change” shall mean any material adverse change in the business, operations, affairs, financial condition, assets or properties of the Borrower and any subsidiary thereof,
taken as a whole. 
 “Obligations” shall mean all now existing or hereafter arising indebtedness,
obligations, liabilities and covenants of the Borrower to the Lender arising under or in connection with or evidenced by this Agreement whether now or hereafter existing, or due or to become due, including, without limitation, all unpaid principal
of and interest on, and all fees owing in respect of, the Revolving Loans. 
 “Potential Event of
Default” means an event, condition or circumstance which, with the giving of notice or the lapse of time, or both, would constitute an Event of Default. 
 “Revolving Loan(s)” shall have the meaning specified in Section 2.1(a) hereof. 
 “Revolving Loan Commitment” shall mean the commitment of the Lender to make Revolving Loans in an aggregate amount
of up to Five Million and no/100 Dollars ($5,000,000), as such amount may be reduced from time to time in accordance with the provisions of Section 2.1(c) hereof or pursuant to Section 6.1 hereof. 
 “Termination Date” shall mean the earlier of (x) March 31, 2007 and (y) the date that
is 30 calendar days following the date on which the Lender shall have given written notice to the Borrower to the effect that, on (but not before) such 30th day (or such later 

  

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date which shall be not more than 90 calendar days from the date of the giving of such notice), the Lender shall cease to be the legal and beneficial owner,
directly or indirectly, of at least 50.1% of the outstanding equity voting interests of the sole or managing general partner of the Borrower. 
 Section 1.2 Time Period Computations. In the computation of a period of time specified in this Agreement from a specified date to a subsequent date, the word “from” means “from and including” and the words
“to” and “until” mean “to but excluding”. 
 ARTICLE II 
 GENERAL PROVISIONS OF REVOLVING CREDIT FACILITY 
 Section 2.1 The Revolving Loans. 
 (a) Revolving Loan Borrowings. Subject to the terms and
conditions of this Agreement, the Lender agrees to make revolving loans (each, a “Revolving Loan” and, collectively, the “Revolving Loans”) to the Borrower from time to time on and after the date
hereof until one Business Day prior to the Termination Date in an aggregate principal amount outstanding at any time of up to, but not in excess of, the Revolving Loan Commitment. Within the limits and subject to the terms and conditions set forth
in this Agreement, the Borrower may borrow up to the Revolving Loan Commitment pursuant to this Section 2.1 and Section 2.2 hereof, may prepay pursuant to Section 3.5 hereof, and reborrow under this Section 2.1 hereof.

 (b) Recording of Loans. The Lender is hereby authorized to record in its books and records, among other things, the amount and
Funding Date of each Revolving Loan made by the Lender and the amount and date of each payment or prepayment of any Revolving Loan. No failure to so record nor any error in so recording shall affect the obligations of the Borrower to repay the
actual outstanding principal amount of the Revolving Loans, with interest thereon, as provided in this Agreement. 
 (c) Optional
Termination or Reduction in Revolving Loan Commitment. The Borrower shall have the right, upon not less than 3 Business Days’ notice to the Lender, to terminate the unused part of the Revolving Loan Commitment; provided that no such
termination or reduction shall be permitted to the extent that after giving effect thereto and to any prepayments of Revolving Loans made on the effective date thereof, the aggregate principal amount of the Revolving Loans then outstanding would
exceed the Revolving Loan Commitment then in effect. Any such reduction shall be in an amount equal to $500,000 or a whole multiple of $100,000 in excess thereof, and shall reduce permanently the Revolving Loan Commitment then in effect. 

Section 2.2 Revolving Loan Borrowing Procedures. 
 (a) Notice of Revolving Borrowing. Whenever the Borrower desires to borrow Revolving Loans under Section 2.1 hereof, the Borrower shall deliver to the Lender written notice (each such notice, a
“Borrowing Notice”) no later than 5:00 p.m. (Central time) on the Business Day prior to the Funding Date of such Revolving Loan (or, in the sole discretion of the Lender, no later than 11:00 a.m. (Central time) on the Funding
Date). The Borrowing Notice 

  

 3 

 
shall specify (i) that the Borrower wishes to effect one or more Revolving Loans, (ii) the aggregate principal amount of the
Revolving Loan thereby requested (which shall not be less than $50,000.00 and shall be in multiples of $10,000, (iii) the requested Funding Date of such Revolving Loan, which date shall be a Business Day, and (iv) the total
aggregate amount of the undrawn Revolving Loan Commitment then available. In lieu of delivering the above-described Borrowing Notice, the Borrower may give the Lender telephonic notice of any such proposed borrowing by the time period, as
applicable, required under this Section 2.2(a); provided that such notice shall be confirmed in writing by delivery to the Lender promptly (but in no event later than 1:00 p.m. (Central time) on the Funding Date of the requested
Revolving Loan) of a Borrowing Notice. 
 (b) Making of Revolving Loans. After receipt of a Borrowing Notice under clause (a) of
this Section 2.2 (or telephonic notice, as the case may be), the Lender shall, subject to the provisions of Section 4.1 hereof, make the amount of the requested Revolving Loan available to the Borrower in Dollars and in immediately
available funds not later than 3:00 P.M. (Central time) on the Funding Date applicable to the Revolving Loan specified in the Borrowing Notice. 
 ARTICLE III 
 INTEREST, FEES AND REPAYMENT 
 Section 3.1 Interest Rate on the Revolving Loans. The aggregate amount of all Revolving Loans outstanding from time to time shall bear interest at
a rate per annum equal to LIBOR plus two (2.0%) (the “Interest Rate”). 
 Section 3.2 Interest after
Due Date. In the event the Borrower fails to make any payment of the principal amount of or interest on any of the Revolving Loans or any other amount owing hereunder, in each case when due (whether by demand, acceleration or otherwise), the
Borrower shall pay to the Lender interest on such unpaid amount, payable from time to time on demand, from the date such amount shall have become due to the date of payment thereof, accruing on a daily basis, at a per annum rate (the
“Default Rate”) equal to the sum of (x) the Interest Rate plus (y) two percent (2%). 
 Section 3.3 Payment and Computations. 
 (a) Payments. All payments required or permitted to be made to the Lender
under this Agreement shall be made in Dollars in immediately available funds to the Lender’s account, as designated, for credit to such account of the Lender as shall be specified from time to time by written notice to the Borrower, reference:
AHGP Revolving Credit Agreement Payment. 
 (b) Computations of Interest. Interest on the unpaid portion of the Revolving Loans, and
interest accruing at the Default Rate on any amount owing hereunder, shall each be calculated for the actual number of days (including the first day but excluding the last day) elapsed and shall be computed on the basis of a year of 360 days.

  

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 (c) Interest Payment Date. Interest on the Revolving Loans shall be payable quarterly in arrears
commencing May 20, 2006 and on the 20th day of each February, May, August and November thereafter up to the
Termination Date, and on the Termination Date. 
 Section 3.4 Payment at Termination Date. Any outstanding principal amount of the
Revolving Loans theretofore not repaid, together with all accrued but unpaid interest thereon and any other amounts due and payable hereunder in accordance with the provisions hereof (including the accrued Commitment Fee), shall be due and payable
in full on the Termination Date (unless sooner accelerated pursuant to the terms hereof), and this Agreement shall not terminate until all Obligations shall have been paid in full. 
 Section 3.5 Optional Prepayments of Revolving Loans. The Borrower may, at its sole option, prepay on any Business Day the principal amount of the
Revolving Loans in whole or in part (in an amount of $10,000.00 or more and in multiples of $1,000.00) at any time and from time to time, without premium or penalty by giving notice to Lender not later than 12:00 p.m. (Central time) on the Business
Day of such prepayment. 
 Section 3.6 Commitment Fee. The Borrower shall pay to the Lender a commitment fee (the
“Commitment Fee”), from the date hereof until the Termination Date, at a percentage per annum equal to 0.30% on the average daily unused portion of the Revolving Loan Commitment (i.e., the Revolving Loan Commitment
minus the aggregate outstanding principal amount of the Revolving Loans). The Commitment Fee shall be payable quarterly in arrears on the last Business Day of each calendar quarter, commencing with the calendar quarter ending
June 30, 2006, and on the Termination Date, and shall be calculated for the actual number of days (including the first day but excluding the last day) elapsed and shall be computed on the basis of a year of 360 days. 
 ARTICLE IV 
 CONDITIONS PRECEDENT TO
REVOLVING LOANS 
 Section 4.1 Conditions Precedent to Revolving Loans. The obligation of the Lender to make any Revolving Loan
shall be subject to the fulfillment to the satisfaction of the Lender of the conditions precedent that, on the Funding Date for such Revolving Loan: 
 (i) No Event of Default. No event has occurred and is continuing, or would result from such Revolving Loan after giving effect to the application of the proceeds therefrom, which constitutes an Event of Default
or would constitute a Potential Event of Default; 
 (ii) Total Outstanding Revolving Loans. After giving effect to the
making of such Revolving Loan on the Funding Date thereof, the aggregate principal amount of all Revolving Loans then outstanding shall not exceed the Revolving Loan Commitment; and 
 (iii) Borrowing Notice Certificate. The Lender shall have received from the Borrower a Borrowing Notice, together with a
certificate of an authorized officer of the Borrower (or its sole or managing general partner), dated the date of the 

  

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Borrowing Notice, certifying that the matters contained in clauses (i) and (ii) of this Section 4.1 are true and correct and further setting
forth the uses for the proceeds of such Revolving Loan and that such uses comply with the provisions of Section 5.1 hereof. 
 (iv) No Material Adverse Change. Before giving effect to such Revolving Loan, there shall have occurred no Material Adverse Change since the date of the Borrower’s initial public offering. 
 ARTICLE V 
 COVENANTS

 The Borrower covenants and agrees that, so long as this Agreement shall remain in effect or any Obligation shall remain unpaid:

 Section 5.1 Proceeds. The Borrower shall use the proceeds of the Revolving Loans solely for the general partnership purposes of the
Borrower. 
 Section 5.2 Seniority. Under applicable laws in force from time to time, the claims and rights of the Lender against the
Borrower under this Agreement will not be subordinate to, and will rank pari passu with, the claims and rights of each other creditor of the Borrower. 
 ARTICLE VI 
 EVENTS OF DEFAULT 
 Section 6.1 Events of Default. If one or more of the following events or conditions (each, an “Event of Default”) shall
occur and be continuing: 
 (a) the Borrower defaults in the payment of principal in respect of any Revolving Loan when due; or 

(b) the Borrower defaults in the payment of interest on any Revolving Loan, or the payment of any Commitment Fee or any other amount owing hereunder,
after the same becomes due and payable for more than five (5) Business Days after notice thereof has been given by the Lender to the Borrower (which notice may be telephonic); or 
 (c) the Borrower shall default in the performance or observance of any other covenant, condition or provision hereof (other than as to the matters
covered by clauses (a) and (b) hereof) and such default shall not be remedied within seven (5) calendar days, in the case of a default of Section 5.2 hereof, or thirty (30) calendar days, in the case of any such other
provision hereof, after written notice thereof is received by the Borrower from the Lender; or 
 (d) a proceeding (other than a proceeding
commenced by the Borrower) shall have been instituted in a court having jurisdiction in the premises seeking a decree or order for relief in respect of the Borrower (or any subsidiary thereof) in an involuntary case under any 

  

 6 

 
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or for the appointment of a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of the Borrower or such subsidiary or for any substantial part of the Borrower’s or such subsidiary’s total assets, or for the winding-up or liquidation of the Borrower’s or such
subsidiary’s affairs and such proceedings shall remain undismissed or unstayed and in effect for a period of sixty (60) consecutive calendar days or such court shall enter a decree or order granting the relief sought in such proceeding; or

 (e) the Borrower (or any subsidiary thereof) shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) of the Borrower or such subsidiary or for any substantial part of the Borrower’s or such subsidiary’s total assets, or shall make a general assignment for the benefit of creditors, or shall fail
generally or be unable (or shall admit in writing its inability) to pay its debts as they become due, or shall take any corporate action in furtherance of any of the foregoing; or 
 (f) any judgments or orders, either individually or in the aggregate, for the payment of money in excess of $5,000,000 shall be rendered against the
Borrower (or any subsidiary thereof) and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of 60 consecutive days during which a stay of enforcement
of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; provided, however, that any such judgment or order shall not be an Event of Default under this Section 6.1(f) if and for so long as
(i) the amount of such judgment or order is covered by a valid and binding policy of insurance between the defendant and the insurer covering payment thereof and (ii) such insurer, which shall be rated at least “A” by A.M. Best
Company at the time such insurance policy is issued to the Borrower or subsidiary, such subsidiary, has been notified of, and has not disputed the claim made for payment of, the amount of such judgment or order; or 
 (g) the Lender determines in good faith that a Material Adverse Change has occurred since the date of the Borrower’s initial public offering;

 then, and upon any such event, the Lender may (1) upon notice to the Borrower, declare the entire outstanding principal amount, if any, of the
Revolving Loans any and all accrued and unpaid interest thereon, and any and all other amounts (including the Commitment Fee) payable by the Borrower to the Lender under this Agreement to be forthwith due and payable, whereupon the entire
outstanding principal amount, if any, of the Revolving Loans, together with any and all accrued and unpaid interest thereon, and any and all other such amounts (including the Commitment Fee), shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of the entry of an order for relief with respect to the Borrower under the
Bankruptcy Code, any principal amount of the Revolving Loans then outstanding, together with any and all accrued and unpaid interest thereon, and any and all such other amounts (including the Commitment Fee) shall thereupon automatically become and
be due and payable without presentment, demand, protest or notice of any kind, all of which are 

  

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hereby expressly waived by the Borrower, and the Revolving Loan Commitment shall be automatically terminated; (2) terminate or reduce the
Revolving Loan Commitment; and (3) exercise any rights and remedies available to it under this Agreement or under applicable laws. 
 ARTICLE VII 
 MISCELLANEOUS 
 Section 7.1 Amendments and Waivers; Cumulative Remedies. No delay or failure of the Lender in exercising any right, power or privilege hereunder shall affect such right, power or privilege; nor shall any single
or partial exercise thereof or any abandonment or discontinuance of steps to enforce such a right, power or privilege preclude any further exercise thereof or of any other right, power or privilege. The rights and remedies of the Lender are
cumulative and not exclusive of any rights or remedies which it would otherwise have. Neither this Agreement nor any term or provision hereof may be changed, waived, discharged or terminated orally but only by an instrument in writing executed by
the party against whom such change, waiver, discharge or termination is sought. Any waiver, permit, consent or approval of any kind or character (whether involving a breach, default, provision, condition or term hereof or otherwise) on the part of
the Lender or of the Borrower under this Agreement shall be effective only in the specific instance and for the purpose for which given and only to the extent set forth specifically in writing. No notice or demand given hereunder shall entitle the
recipient thereof to any other or further notice or demand in similar or other circumstances. 
 Section 7.2 Notices. Any notice or
other communication required or permitted hereunder to be in writing may be given by telecopy, email or other customary means of electronic communication or by any other customary means of mail delivery, including hand delivery, and shall be
addressed as follows: 
 to the Borrower, to it at: 
 Alliance Holdings GP, L.P. 
 1717 South Boulder Avenue 
 Tulsa, OK 74119-4886 
 Attention: Brian L.
Cantrell 
 to the Lender, to it at: 
 C-Holdings, LLC 
 1717 South Boulder Avenue 
 Tulsa, OK 74119-4886 
 Attention: Joseph W. Craft III 
 or such other address for notice as any party hereto may designate for itself in a notice to the other party. 
 Section 7.3 Governing Law; Jury Trial Waiver. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF 

  

 8 

 
OKLAHOMA AND, FOR ALL PURPOSES, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF OKLAHOMA WITHOUT REGARD TO THE CONFLICTS OF
LAWS PRINCIPLES. EACH OF THE BORROWER AND THE LENDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY. 
 Section 7.4 Successors and Assigns. 
 (a) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective permitted
successors and assigns of the parties hereto, provided that the Borrower may not assign or transfer any of its interest hereunder without the prior written consent of the Lender. 
 (b) Assignments. The Lender may assign any or all of its rights or interests under this Agreement without the consent of the Borrower. 

Section 7.5 Affirmative Rate of Interest Permitted by Law. Nothing in this Agreement shall require the Borrower to pay interest to the Lender
at a rate exceeding the maximum rate permitted by applicable law to be charged or received by the Lender, it being understood that this Section 7.5 is not intended to make the criminal laws of any jurisdiction applicable in circumstances in
which they would not otherwise apply. If the rate of interest specified herein or with respect to any Revolving Loan or fee would otherwise exceed the maximum rate so permitted to be charged or received with respect to any amounts outstanding
hereunder, the rate of interest required to be paid to the Lender shall be automatically reduced to such maximum rate. 
 Section 7.6
Costs and Expenses. The Borrower shall, on demand, pay to the Lender, and reimburse the Lender for, and defend and hold harmless the Lender from, and indemnify the Lender against, all out-of-pocket costs and expenses, if any (including
without limitation, reasonable counsel and advisor fees and expenses), of the Lender in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of or exercise of remedies under this Agreement and any other
document or instrument delivered in connection with the transactions contemplated hereby, including, for the avoidance of doubt and without limitation, reasonable counsel fees and expenses in connection with the enforcement of rights under this
Section 7.6. 
 Section 7.7 Indemnification. The Borrower shall, to the fullest extent permitted by applicable law, indemnify,
defend and hold harmless the Lender and its affiliates and each of their members (or shareholders or partners or equivalent owners), officers, directors, employees and agents (each, an “Indemnitee”) from and against, and
shall, on demand, pay and reimburse each Indemnitee for, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel that may be incurred by or asserted or awarded against any
Indemnified Party) arising out of, relating to or in connection with any investigation, proceeding (legal, arbitral or otherwise) or litigation (i) arising out of or relating to this Agreement or any other document entered into in connection
herewith, 

  

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commitment of the Lender to make Revolving Loans, the making of any Revolving Loan, the use of any proceeds of any Revolving Loan made hereunder or any other
transaction contemplated hereby or related hereto, including all fees and expenses of counsel incurred in connection with enforcing the Lender’s rights under this Section 7.7. Each Indemnitee, whether or not a party hereto, is an intended
third party beneficiary of this Section 7.7 entitled to the benefits of this Section 7.7, and shall be entitled to enforce the provisions of this Section 7.7 as against the Borrower as though it were a party hereto. 
 Section 7.8 Exculpation. The Borrower agrees not to assert any claim against the Lender or any other Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages arising out of or otherwise relating to this Agreement or any other document entered into in connection herewith (or the breach of any provision hereof or thereof), the commitment of the Lender
hereunder to make Revolving Loans, the making of any Revolving Loan, the use of the proceeds of any Revolving Loan or any of the transactions contemplated hereby or thereby, and the Borrower hereby irrevocably waives any and releases the Lender and
each other Indemnitee from any such damages, whether or not accrued and whether or not known or suspected to exist in favor of the Borrower. Each Indemnitee, whether or not a party hereto, is an intended third party beneficiary of this
Section 7.8. 
 Section 7.9 Integration. This Agreement constitutes the entire agreement of the Lender and the Borrower with
respect to the subject matter hereof and there are no promises, undertakings, representations or warranties by the Lender relative to the subject matter hereof or thereof not expressly set forth or referred to herein. This Agreement, and the
obligation of the Lender to make Revolving Loans as provided herein, is solely for the benefit of the Borrower and no other person has any rights hereunder against the Lender or with respect to the commitment of the Lender to make Revolving Loans as
contemplated by this Agreement. 
 Section 7.10 Severability. The provisions of this Agreement are severable, and if any clause or
provision of this Agreement shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such clause or provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in
any manner affecting the validity or enforceability of such clause or provision in any other jurisdiction or the remaining provisions hereof in any jurisdiction. 
 Section 7.11 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each complete set of which, when so executed and delivered by
all parties, shall be an original, but all such counterparts shall together constitute but one and the same instrument. 
 Section 7.12
Headings, Bold Type and Table of Contents. The section headings, subsection headings, and bold type used herein and the Table of Contents hereto have been inserted for convenience of reference only and do not constitute matters to be
considered in interpreting this Agreement. 
  

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 IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this
Agreement as of the day and year first above written. 
  

							
	BORROWER
		
		 	 Alliance Holdings GP, L.P.

			
		 	 By:
	 	 Alliance GP, LLC, its general partner

				
		 		 	 By:
	 	 /s/ Thomas L. Pearson

		 		 		 	 Name: Thomas L. Pearson

		 		 		 	 Title: Senior Vice President

	
	LENDER
		
		 	 C-Holdings, LLC

			
		 	 By:
	 	 /s/ Joseph W. Craft III

		 		 	 Name: Joseph W. Craft III

		 		 	 Title: President

  

 11Omnibus Agreement

 Exhibit 10.3 
  

 OMNIBUS AGREEMENT 
 among 
 ALLIANCE RESOURCE HOLDINGS, INC. 
 ALLIANCE RESOURCE GP, LLC 
 ALLIANCE RESOURCE MANAGEMENT GP, LLC 
 and 
 ALLIANCE RESOURCE PARTNERS, L.P.

  

 TABLE OF CONTENTS 
  

					
	 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

  

 -i- 

 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”). 
 RECITAL: 
 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. 

 “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- 

 “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- 

 (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- 

 
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- 

 
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- 

 ARTICLE III 
 Indemnification 
 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- 

 (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 IV 
 Assignment 
 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- 

 
– 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- 

 
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- 

 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- 

					
	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-

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