Document:

exv10w64

Exhibit 10.64

Elk Creek

Ohio County

COAL MINING LEASE AND SUBLEASE

     This Coal Mining Lease and Sublease (this “Lease”) is made and entered into as of
February 9, 2011 (the “Effective Date”), by and between: (i) Ceralvo Holdings, LLC, a
Delaware limited liability company (the “Lessor”), and (ii) Armstrong Coal Company, Inc.,
a Delaware corporation (the “Lessee”).

WITNESSETH:

     Whereas, Lessor owns the fee interests as indicated on Schedule A, attached hereto,
in the real property indicated on Schedule A (the “Owned Property”) and/or the leasehold interests
as indicated on Schedule B, attached hereto, in the real property indicated on Schedule B (the
“Leased Property”), demised pursuant to the agreements identified in Schedule B (as such agreements
may be supplemented, amended, restated, replaced, or modified from time to time, each such
agreement an “Underlying Lease”), together with any greater estate therein as may now exist or
hereafter may be acquired by Lessor (the Owned Property and the Leased Property are, collectively,
the “Premises”); and

     Whereas, Lessor desires to lease the Premises to Lessee, and Lessee desires to lease
the same from Lessor, upon such terms and conditions as are set forth herein.

     Now Therefore, in consideration of One Dollar and the mutual covenants hereinafter
contained, the parties hereto agree as follows:

     Subject to the terms hereof, Lessor does hereby lease unto Lessee the Premises and grant unto
Lessee an exclusive license to enter upon the Surface Lands (as hereafter defined) for the purpose
of mining all veins of coal on the Premises. It is agreed that Lessor hereby grants to Lessee,
with respect to the Premises, to the extent the Lessor has the right to do so, all mining rights,
privileges and immunities, of every nature and kind (including deep mining, strip mining, highwall
mining and auger mining rights), coal-bed methane rights and the rights to extract all other
minerals not covered by pre-existing rights currently held by Lessor or third parties, which are
necessary, convenient or customary in connection with or in relation to the conduct of mining
operations or the development, equipment or improvement of mines, or for the mining, extraction,
removal or recovery of coal, including the right to disturb, cast, and pile all strata without
regard to mineral content and for preparing and marketing coal; such rights, including, without
limitation, to the extent permitted by applicable statutes and regulations and to the extent the
Lessor has the right to grant the same, the right to install and maintain railroad, truck and river
dock loading facilities, storage areas, railroad tracks and switches, pumping stations, pole lines
and wires; to create gob piles (provided gob piles are maintained, stabilized, and removed or
covered as governed by all existing and future laws); to dig ditches for the drainage of water; to
lay pipe lines; to erect towers; to provide for the storage of materials and supplies; to construct
and use roadways; to erect and use

 

 

buildings, plants and structures of every kind; and, in general, and without limitation, to do any
and all things incident to Lessee’s mining, processing, and marketing of coal produced from the
Premises; and Lessee is empowered and authorized to exercise all of the aforesaid rights,
privileges and immunities.

     Subject, however, to the following rights existing as of the Effective Date: oil and gas
lease rights, public roads, public drainage ditches, easements for power lines, pipelines,
railroads and rights-of-way, telephone lines, buried cables and all other easements and
reservations.

     To Have and To Hold the same unto the Lessee, its successors and assigns, for and
during the term herein set forth and upon the following terms and conditions:

ARTICLE 1

Term of Lease

     Section 1.1-Term. The term of this Lease (“Term”) shall commence on the Effective
Date, and terminate on the tenth (10th) anniversary of the Effective Date; provided,
that the Term shall automatically be extended for ten (10) one-year extension periods, and
thereafter until such time as all of the minable and merchantable coal has been mined, unless
Lessee delivers notice of non-renewal to Lessor prior to the end of the then-existing Term. Lessee
shall be entitled to terminate this Lease upon ninety (90) days’ written notice to Lessor, in which
case Lessee’s obligations, including any royalty payments, shall be limited to those incurred as of
the date of such termination.

ARTICLE 2

Mining Operations and Surface Lands

     Section 2.1-Mining Operations. Lessee will conduct mining operations on the Premises
and the Surface Lands in a reasonable and professional manner in accordance with standard practices
employed in western Kentucky coalfields. Lessee shall conduct its mining operations in accordance
with, and shall comply with, all state and local laws and the lawful rules, regulations and orders
of any governmental authority in respect of such mining operations. Lessor grants to Lessee the
right, at the cost and expense of Lessee, to do and perform, with respect to the Premises, whatever
may be required to be performed by Lessee, or may be deemed by Lessee to be required or to be
advisable, in order to comply with federal, state or local law or the lawful rules, regulations or
orders or any governmental authority. Lessor further agrees to execute and deliver upon the request
of Lessee any additional forms or documentation required by any governmental agency or bureau with
regard to the prosecution of the mining operation.

     Section 2.2-Use of Surface Lands. Lessor shall retain in its possession the
instruments of every nature and kind evidencing Lessor’s interest in and to the Premises and the
Surface Lands and every part thereof; provided, however, that upon request by Lessee, Lessor shall
make such records available to Lessee for use thereof by Lessee. Except as otherwise provided
herein, Lessor shall retain possession of the surface rights related to the Premises (the “Surface
Lands”), until the same shall be required by Lessee in connection with its mining operations
hereunder, it being recognized by Lessee that the

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Surface Lands are now or may hereafter be used by Lessor for farming or other purposes. When
and as often as Lessee shall first require any of the Surface Lands in connection with its mining
operation, Lessee shall, not more than one hundred twenty (120) or less than ninety (90) days prior
to January 1 of the year when such Surface Lands will be required by Lessee, give written notice to
Lessor specifying such lands. At such time within said year as shall be mutually determined, but
not before the expiration of one hundred twenty (120) days after the receipt by Lessor of such
notice, Lessor shall deliver exclusive possession of said Surface Lands to Lessee. Notwithstanding
the above, if circumstances warrant, Lessee shall have the right, upon giving Lessor forty (40)
days’ written notice, to take possession of such Surface Lands in connection with its mining
operations by paying Lessor or crop tenant for crop damage or soil preparation costs, as the case
may be. Lessee may, upon taking possession thereof, remove and disturb such Surface Lands or any
part thereof, except that Lessee shall, in its operations, prevent and avoid damage to existing oil
wells and/or pipelines. Forthwith upon termination of the need by Lessee for any particular part of
the said Surface Lands in connection with its mining operations hereunder, as determined by
Lessee’s mining plans, Lessee shall surrender possession thereof to Lessor, subject to the
provisions of Article 8, Lessee shall, prior to such surrender of possession, comply with all
applicable statutes and regulations then in effect with respect to restoration of such Surface
Lands. At Lessor’s request, and upon Lessee’s consent, such consent not to be unreasonably
withheld, Lessee may surrender additional Surface Lands to Lessor that are not in Lessee’s mining
plan or have been reclaimed by Lessee and reclamation bonds released. Thereafter, Lessee shall
have no further obligations or rights with respect to such lands surrendered and the same shall be
deemed to be no longer a part of the Surface Lands; provided, however, that nothing contained in
this sentence shall derogate from or be construed to deny to Lessee, with respect to lands so
surrendered, the rights granted herein. Lessor shall have the right to convey title to any part of
lands so surrendered, subject, however, to the consent of Lessee, such consent not to be
unreasonably withheld, in which case Lessee shall have no further rights to such lands and such
lands shall no longer be part of this Lease. It is understood that Lessor shall make no use of any
lands so surrendered which may adversely affect Lessee’s and/or any assignees’ or sublessees’
rights hereunder in meeting their obligations with regard to reclamation of such lands under
applicable law.

     Section 2.3-Underlying Leases. Lessee hereby agrees to comply with the applicable
terms and conditions of any Underlying Lease, which terms are hereby incorporated herein by
reference.

ARTICLE 3

Royalties

     Section 3.1-Production Royalty Payments.

          (a) Payment for Coal Mined. For all coal mined and sold by Lessee from the Premises,
Lessee shall pay to Lessor a Production Royalty Payment in an amount equal to seven percent (7%) of
the Sales Price (as hereinafter defined) received by Lessee. In addition to the foregoing, Lessee
shall pay any royalties due for coal leased (not owned in fee) by Lessor. The aforementioned
payments shall be defined herein as

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the “Production Royalty Payments” for all purposes of this Lease. The parties agree that
Lessor has received credit for an advance royalty equal to $12,000,000 (“Advance Payment”), and the
amount of the Advance Payment shall be applied against and be recoupable against all future
Production Royalty Payments otherwise coming due.

          (b) Definition of Sales Price. The term Sales Price as used herein shall mean the per
ton consideration actually charged Lessee for each 2,000 pounds of coal sold F.O.B. the mine after
final preparation and loading without any deduction of preparation and loading costs,
transportation costs, sales commissions or selling expenses, discounts, rebates, preparation
charges or any other costs or charges whatsoever. In the case of any coal not sold at arm’s
length, sold to an affiliate of Lessee, consumed by Lessee or sold for a consideration other than
money, the per ton consideration for computing the Sales Price shall be the average sale price for
coal of comparable quality under similar contracts, F.O.B. the mine at the time of shipment or
consumption without any deduction of preparation and loading costs, transportation costs, sales
commissions or selling expenses, discounts, rebates, preparation charges or any other costs or
charges whatsoever.

          (c) Lessee to Keep Records. Lessee shall keep records of truck scale weights, or
river barge dead weight surveys, or railroad car weights, whichever is applicable, together with
accurate surveys and progress maps used in conjunction with accepted and recognized engineering
methods which shall be taken as the basis for payment of Production Royalty Payments. Lessee shall
keep a true and correct record of all coal mined, removed and sold from the Premises and shall
permit Lessor or its agents, at all reasonable times, to inspect the records, and perform other
practical and reasonable investigations to check the accuracy of the records of Lessee. Lessor,
through its agents, may enter upon the Premises at any time for the purpose of verifying the
quantity of coal removed therefrom.

          (d) Time, Place and Allocation of Payment of Production Royalty Payments. All
Production Royalty Payments shall be paid by Lessee to Lessor on or before the 25th day
of each calendar month on all coal mined and produced by Lessee from the Premises which was sold
during the preceding calendar month and for which Lessee has received payment. All Production
Royalty Payments shall be paid by check or by wire transfer if Lessor so instructs. Each payment
of Production Royalty Payments hereunder shall be accompanied by a statement from Lessee showing
the number of tons of coal mined and sold during the preceding calendar month (showing separately
coal produced by the strip, surface, auger or open-pit method of mining and coal produced by any
other method of mining), the weighted average of the Sales Price and the computation of royalties
payable on such coal so mined and sold during such calendar month. All payments due hereunder
shall be mailed to Lessor at the address listed in this Lease, or as otherwise directed by Lessor.

ARTICLE 4

Default

     Section 4.1-Events of Default.

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          (a) Defaults Under this Lease. Should Lessee fail to pay any installment of any
royalty payment herein provided for when due, or should Lessee fail to observe or perform any other
covenant on its part to be observed or performed under the terms of this Lease, Lessor shall have
the right to give Lessee written notice specifying the particular default or defaults of which
complaint is made and of its intention to declare a forfeiture of this Lease by reason of such
default or defaults unless the same are rectified. If the default is the failure to pay to Lessor
an installment of a royalty payment at the time provided for herein, Lessee shall have five (5)
days from the date of receipt of such notice to correct such default. If the default is the failure
of Lessee to observe or perform some other covenant of this Lease other than to pay royalty
payments to Lessor, Lessee shall have thirty (30) days (if such default cannot be cured within
thirty (30) days, Lessee shall have such additional reasonable time to cure such default, provided
Lessee diligently takes action to cure such default within such thirty (30) day period) from the
date of receipt of such notice to cure such default. In case of a dispute as to whether or not any
such default exists, the time Lessee may cure such default, as aforesaid, shall not commence to run
until after the dispute is resolved by arbitration.

          (b) Remedies Upon Default. If Lessee fails to remedy any such default or defaults
within the time or times herein specified, then at the option of Lessor, all of Lessee’s rights
under this Lease shall terminate, except as otherwise provided in Section 4.1(e), and Lessor shall
have the right to re-enter and take possession of the Premises and the Surface Lands without
obligation to assume any debt of Lessee; provided, however, that the termination of this Lease in
any manner or for any cause whatever shall not relieve Lessee of its obligation for any royalty
payment which may have accrued hereunder at the date of such termination; provided, further, that
the remedy of termination in the event of default by Lessee as above authorized shall not be deemed
or interpreted as the exclusive remedy available to Lessor, and Lessor may require and enforce
performance by Lessee of each and every term and provision of this Lease incumbent upon the Lessee
to be kept and performed, utilizing any available remedy therefor.

          (c) Arbitration. Any disagreement between Lessor and Lessee arising hereunder shall be
submitted to binding arbitration in accordance with the rules of the American Arbitration
Association then in effect. A panel of three arbitrators, knowledgeable with the coal industry in
the western Kentucky area, shall be named, one to be selected by Lessee, one to be selected by
Lessor, and one to be selected by the other two arbitrators. If the two arbitrators appointed by
Lessor and Lessee cannot agree on the selection of the third neutral arbitrator selection of such
arbitrator shall be made by the American Arbitration Association. The non-prevailing party shall be
responsible for the reasonable expenses, fees and costs (including, without limitation, reasonable
attorney’s fees) incurred by both Lessor and Lessee in such arbitration. If royalty payments are
disputed, then those payments shall be placed by Lessee in an interest-bearing escrow account to be
distributed in accordance with the decision of the arbitrators. With regard to any monetary sum or
quantum measurement such as coal tonnages or reserves, the figures determined by each of the
arbitrators shall be averaged and the determination which differs most from said average shall be
excluded; the remaining two determinations shall then be averaged and such average shall be final
and conclusive.

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          (d) Rights of Lessee Upon Termination of Lease. Upon the termination of this Lease for
any cause or in any manner, and upon completion of all reclamation as required by governing
authorities and upon payment by Lessee to Lessor of all royalties due hereunder, Lessee shall have
the right and obligation within a period of twelve (12) months from the date of such termination to
remove all buildings, structures, machinery, equipment, tools, tracks, power lines and other
property owned by Lessee from any portion of the Surface Lands then owned by Lessor; provided,
however, that if the propriety of such termination shall be a matter of disagreement or dispute
between Lessor and Lessee, then such twelve (12) months’ period shall not commence to run until,
after the dispute is resolved. Provided, further, that if Lessee, notwithstanding the exercise of
reasonable diligence, is prevented by causes beyond the control, and without the fault or
negligence, of Lessee from removing said property of Lessee within such twelve (12) months’ period,
Lessee shall have, in addition to said twelve (12) months, a period of time equal to the period of
time during which Lessee was so prevented from removing such property.

ARTICLE 5

Representations and Warranties

     Section 5.1-Due Authority of Lessor and Quiet Enjoyment. Lessor covenants and warrants
that it has full power and authority to grant, lease, and let the Premises and the license to the
Surface Lands as hereinabove and hereinafter set forth. Lessor, for itself and its successors and
assigns, covenants that Lessee shall, against all and every person or persons lawfully claiming the
whole or any part of the Premises or the Surface Lands by, through, or under Lessor, have and
quietly possess and enjoy the Premises and the Surface Lands throughout the term of this Lease, so
long as Lessee shall not be in default in the performance of any covenant of this Lease incumbent
upon it to be kept and performed. In the event of any such asserted claim which may affect or
impair the quiet possession of any part of the Premises or the Surface Lands by Lessee, notice in
writing thereof shall be promptly delivered to Lessor, and Lessor shall be privileged to contest
any such claim at its expense; and in such event Lessee shall cooperate with Lessor to remedy the
situation, with respect to the part of the Premises or the Surface Lands as to which such claim has
been asserted until such claim is settled, which Lessor agrees shall be done promptly if same can
be done on a reasonable basis. Lessor shall not enter into any agreement(s) with third parties
that may interfere with the mining operation or create any obligation or responsibility on Lessee’s
part unless agreed to in writing by Lessee.

     Section 5.2-Eminent Domain or Condemnation Proceedings. Lessor covenants that there
are no eminent domain, zoning or condemnation proceedings pending or threatened against or related
to the Surface Lands or any portion thereof.

     Section 5.3-Litigation. Lessor represents and warrants that there is no claim, legal
action, suit, proceeding, arbitration, dispute, governmental investigation or administrative
proceeding, nor any order, decree, or judgment, pending or in effect, or, to Lessor’s knowledge,
threatened, against or affecting (i) the Premises and/or the Surface Lands, (ii) the ability of
Lessor to execute this Lease, or (iii) the accuracy and completeness of any representation and
warranty of Lessor made herein.

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     Section 5.4-Third Party Claims. Lessor represents and warrants that neither Lessor
nor the Premises and/or the Surface Lands are bound by any contract, agreement, lease, license or
subject to any encumbrance of any kind or nature, to which Lessor or its predecessors were a party
thereto, and that would in any manner restrict, limit or affect Lessee’s ability to mine and
operate the Premises and/or the Surface Lands as Lessee would choose, free of any obligation to or
claim of any person or organization associated with, arising out of or in connection with any such
contract, agreement, lease, license or encumbrance of Lessor or of any affiliate thereof, or of any
predecessor in title in interest to the Premises and/or the Surface Lands, including any agreement
applicable to any of its employees.

ARTICLE 6

Indemnification

     Section 6.1-Indemnification of Lessor. Lessee shall, at its own cost and expense, pay
all wages, workmen’s compensation claims, claims for material, equipment and supplies contracted
for by the Lessee in connection with the conduct of its operations hereunder, and shall indemnify
and hold, Lessor and its assigns harmless of, from and against, any and all claims damages,
demands, expenses, fines, liabilities and taxes (of any character or nature whatsoever, regardless
of by whom imposed), and losses of every conceivable kind, character and nature whatsoever
(including, but not limited to, claims for losses or damages to any property or injury to or death
of any person) asserted by or on behalf of any person arising out of, resulting from or in any way
connected with Lessee’s presence on or mining of the coal on the Premises or the Surface Lands.
Lessee also covenants and agrees, at its expense, to pay, and to indemnify and save Lessor and its
assigns harmless of, from and against, all costs, reasonable attorneys’ fees, expenses and
liabilities incurred in any action or proceeding brought by reason of any such claim or demand.

ARTICLE 7

Taxes

     Section 7.1-Payment of Taxes. Lessee shall pay or cause to be paid the real estate
taxes levied on the Premises and the Surface Lands and shall pay all severance taxes or other taxes
based upon production of coal mined from the Premises.

ARTICLE 8

Reclamation of Surface Lands

     Section 8.1-Reclamation of Surface Lands by Lessee. Once mining commences on the
Surface Lands, Lessee will reclaim the Surface Lands in accordance with all existing applicable
federal, state and local laws. In this connection, it will, among other things, fill in or cover
all cuts, pits and adits or establish water impoundments, restore the mined out areas to an
acceptable contour, replant such areas and dispose of all toxic and acid-bearing substances in
accordance with all applicable laws and regulations in order to ensure that the Surface Lands will
not constitute an unreasonable hazard. Lessor shall have the right, but not the obligation, to
inspect all land restoration and revegitation of the Surface Lands and the disposal of toxic
substances on the Surface Lands to see that Lessee has complied with all existing applicable federal, state and local laws before Lessee
requests releases from any federal, state or county bonding requirements in connection with the
above. Lessee shall have no obligation to dispose of foreign or toxic substances of Lessor or
others without the written agreement of Lessee. Lessee shall have the right to make re-entry onto
the Surface Lands with machinery and equipment from time to time after the formal termination of
the term hereof for the purpose of compliance with any federal, state or local government
requirements.

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ARTICLE 9

General

     Section 9.1-Remedies, Etc., Cumulative. Each right, power and remedy of Lessor
or Lessee provided for in this Lease shall be cumulative and concurrent and shall be in addition to
every other right, power or remedy provided for in this Lease or now or hereafter existing at law
or in equity or by statute or otherwise, and the exercise or beginning of the exercise or the
failure to exercise by Lessor or Lessee of any one or more of the rights, powers or remedies
provided for in this Lease or now or hereafter existing at law or in equity or by statute or
otherwise shall not preclude the simultaneous or later exercise by Lessor or Lessee of any or all
rights, powers or remedies.

     Section 9.2-Notices. All notices and other communications with respect to this Lease
shall be in writing and shall be deemed effectively given when delivered personally or seventy-two
(72) hours after mailing by certified mail, postage prepaid, to the following addresses of the
parties:

If to Lessor:

Ceralvo Holdings, LLC

7733 Forsyth Blvd., Suite 1625

St. Louis, MO 63105

Attn: J. Hord Armstrong, III

Facsimile: (314) 721-8211

If to Lessee:

Armstrong Coal Company, Inc.

7733 Forsyth Blvd., Suite 1625

St. Louis, MO 63105

Attn: J. Hord Armstrong, III

Facsimile: (314) 721-8211

Each party may change its address by giving written notice of such change to the other party.

     Section 9.3-Binding Effect of Lease, Subleasing. This Lease shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns; provided,
however, that no assignment of this Lease or sublease of the Premises

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may be made by Lessee other than to an affiliate of Lessee, without the prior written consent of
Lessor, which consent shall not be unreasonably withheld, delayed or conditioned.

     Section 9.4-Entire Agreement. This Lease constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof, and no alteration, modification or
interpretation hereof shall be binding upon the parties hereto unless in writing and signed by
Lessor and Lessee.

     Section 9.5-Governing Law and Section Headings. This Lease shall be interpreted and
construed in accordance with the laws of the Commonwealth of Kentucky. The titles of the Articles
and Sections in this Lease have been inserted as a matter of convenience of reference only and
shall not control or affect the meaning or construction of any of the terms and provisions hereof.

     Section 9.6-Force Majeure. If because of Force Majeure either party hereto is unable
to carry out any of its obligations under this Lease (other than obligations of either party to pay
money due), and if such party promptly gives to the other party hereto written notice of such Force
Majeure, then the obligations of the party giving such notice shall be suspended to the extent made
necessary by such Force Majeure and during its continuance, provided the effect of such Force
Majeure is eliminated in so far as possible with all reasonable dispatch. The term “Force Majeure”
as used herein shall mean any unforeseeable causes beyond the control and without fault or
negligence of the party affected thereby, such as acts of God, acts of the public enemy,
insurrections, riots, labor disputes, labor or material shortages, fires, explosions, floods,
breakdowns of or damage to plants, equipment or facilities, interruptions to transportation, river
freeze-ups, embargoes, legislation causing loss of markets, orders or acts of civil or military
authority, or other like or unlike causes which wholly or partly prevent the mining, loading or
delivering of the coal by Lessee.

     Section 9.7-Recording of Short Form. Lessor and Lessee agree to record a short form
of this Lease in the Office of the Ohio County Clerk.

     Section 9.8-Oil and Gas. In connection with the mining of any coal on properties
where Lessor owns the coal rights and on which there exist any abandoned and/or active oil and gas
wells, if Lessor and Lessee mutually agree that it is economically beneficial to mine through any
such wells, then Lessor and Lessee agree that each will pay (i) one half of the costs of plugging
any abandoned oil or gas wells, and (ii) one half of the costs of plugging, re-drilling and
restoring production (including piping relocation) in the case of any active oil and gas wells.

     In Witness Whereof, the parties hereto have each caused this Lease to be executed by
one of its duly authorized officers as of the date first above written.

	 	 	 	 	 	 	 

	 	 	Ceralvo
Holdings, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Martin D. Wilson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Martin D. Wilson, Manager	 	 
	 
	 	 	 	 	 	 
	`
	 	 	 	 	 	 
	 	 	Armstrong
Coal Company, Inc.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Martin D. Wilson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Martin D. Wilson, President	 	 

9exv10w66

Exhibit 10.66

REAL ESTATE LEASE

This Lease Agreement (this “Lease”) is dated August 1, 2009, by and between David R. Cobb and
Rebecca K. Cobb (“Landlord”), and Armstrong Coal Company, Inc (“Tenant”). The parties agree as
follows:

PREMISES. Landlord, in consideration of the lease payments provided in this Lease, leases to
Tenant a 6,500+ square foot office building, a 1,900 square foot office annex, and a 1,680 square
foot office addition to be constructed and ready for occupancy in August 2009, all located on one
(1) acre with existing parking for 25+ vehicles (the “Premises”) located at 407 Brown Road,
Madisonville, Hopkins County, KY 42431.

TERM. The lease term will begin on August 01, 2009 and will terminate on July 31, 2014.

LEASE PAYMENTS. Tenant shall pay to Landlord monthly installments of $5,000.00, payable in advance
on the first day of each month. Lease payments shall be made to the Landlord at 3575 Brown Road,
Madisonville, KY 42431, which address may be changed from time to time by the Landlord.

POSSESSION. Tenant shall be entitled to possession on the first day of the term of this Lease, and
shall yield possession to Landlord on the last day of the term of this Lease, unless otherwise
agreed by both parties in writing. At the expiration of the term, Tenant shall remove its goods
and effects and peaceably yield up the Premises to Landlord in as good a condition as when
delivered to Tenant, ordinary wear and tear excepted.

PROPERTY INSURANCE. Tenant shall maintain casualty insurance on the Premises in an amount not less
than 100.00% of the full replacement value. Landlord shall be named as an additional insured in
such policies. Tenant shall deliver appropriate evidence to Landlord as proof that adequate
insurance is in force issued by companies reasonably satisfactory to Landlord. Landlord shall
receive advance written notice from the insurer prior to any termination of such insurance
policies. Tenant shall also maintain any other insurance which Landlord may reasonably require for
the protection of Landlord’s interest in the Premises. Tenant is responsible for maintaining
casualty insurance on its own property.

LIABILITY INSURANCE. Tenant shall maintain liability insurance on the Premises in a total
aggregate sum of at least $1,000,000.00. Tenant shall deliver appropriate evidence to Landlord as
proof that adequate insurance is in force issued by companies reasonably satisfactory to Landlord.
Landlord shall receive advance written notice from the insurer prior to any termination of such
insurance policies.

RENEWAL TERMS. This Lease shall automatically renew for an additional period of twelve (12) months
per renewal term, unless either party gives written notice of termination no later than 30 days
prior to the end of the term or renewal term. The lease terms during any such renewal term shall
be the same as those contained in this Lease.

MAINTENANCE.

Landlord’s obligations for maintenance shall include:

     -items of maintenance not specifically delegated to Tenant under this Lease.

 

 

Tenant’s obligations for maintenance shall include:

- the sewer, water pipes, and other matters related to plumbing

- the electrical, telephone, computer related wiring and fixtures

- the heating, air conditioning, and ventilation systems

-the exterior cosmetic and functional structure features including roof covering, windows
and doors

-the parking lots, sidewalks, lawn and landscaping

-the compliance with local, state, and federal regulations and ordinances

- other items of maintenance including furnishings and floor, ceiling and wall coverings.

UTILITIES AND SERVICES. Tenant shall be responsible for all utilities and services incurred in
connection with the Premises.

TAXES. Taxes attributable to the Premises or the use of the Premises shall be allocated as
follows:

REAL ESTATE TAXES. Landlord shall pay all real estate taxes and assessments for the Premises.

PERSONAL TAXES. Landlord shall pay all personal taxes along with all sales and/or use taxes
(if any) that may be due in connection with lease payments. Tenant shall pay any charges which
may be levied against the Premises and which are attributable to Tenant’s use of the Premises,

DEFAULTS. Tenant shall be in default of this Lease if Tenant fails to fulfill any lease obligation
or term by which Tenant is bound. Subject to any governing provisions of law to the contrary, if
Tenant fails to cure any financial obligation within 10 days (or any other obligation within 30
days) after written notice of such default is provided by Landlord to Tenant, Landlord may take
possession of the Premises without further notice (to the extent permitted by law), and without
prejudicing Landlord’s rights to damages. In the alternative, Landlord may elect to cure any
default and the cost of such action shall be added to Tenant’s financial obligations under this
Lease. Tenant shall pay all costs, damages, and expenses (including reasonable attorney fees and
expenses) suffered by Landlord by reason of Tenant’s defaults. All sums of money or charges
required to be paid by Tenant under this Lease shall be additional rent, whether or not such sums
or charges are designated as “additional rent”. The rights provided by this paragraph are
cumulative in nature and are in addition to any other rights afforded by law.

CUMULATIVE RIGHTS. The rights of the parties under this Lease are cumulative, and shall not be
construed as exclusive unless otherwise required by law.

REMODELING OR STRUCTURAL IMPROVEMENTS. Tenant shall have the obligation to conduct any
construction or remodeling (at Tenant’s expense) that may be required to use the Premises as
specified above. Tenant may also construct such fixtures on the Premises (at Tenant’s expense)
that appropriately facilitate its use for such purposes. Such construction shall be undertaken and
such fixtures may be erected only with the prior written consent of the Landlord which shall not be
unreasonably withheld. Tenant shall not install awnings or advertisements on any part of the
Premises without Landlord’s prior written consent. At the end of the lease term, Tenant shall be
entitled to remove (or at the request of Landlord shall remove) such fixtures, and shall restore
the Premises to substantially the same condition of the Premises at the commencement of this Lease.

 

 

ACCESS BY LANDLORD TO PREMISES. Subject to Tenant’s consent (which shall not be unreasonably
withheld), Landlord shall have the right to enter the Premises to make inspections, provide
necessary services, or show the unit to prospective buyers, mortgagees, tenants or workers.
However, Landlord does not assume any liability for the care or supervision of the Premises. As
provided by law, in the case of an emergency, Landlord may enter the Premises without Tenant’s
consent. During the last three months of this Lease, or any extension of this Lease, Landlord
shall be allowed to display the usual “To Let” signs and show the Premises to prospective tenants.

INDEMNITY REGARDING USE OF PREMISES. To the extent permitted by law, Tenant agrees to indemnify,
hold harmless, and defend Landlord from and against any and all losses, claims, liabilities, and
expenses, including reasonable attorney fees, if any, which Landlord may suffer or incur in
connection with Tenant’s possession, use or misuse of the Premises, except Landlord’s act or
negligence.

COMPLIANCE WITH REGULATIONS. Tenant shall promptly comply with all laws, ordinances, requirements
and regulations of the federal, state, county, municipal and other authorities, and the fire
insurance underwriters. However, Tenant shall not by this provision be required to make
alterations to the exterior of the building or alterations of a structural nature.

SUBORDINATION OF LEASE. This Lease is subordinate to any mortgage that now exists, or may be given
later by Landlord, with respect to the Premises.

NOTICE. Notices under this Lease shall not be deemed valid unless given or served in writing and
forwarded by mail, postage prepaid, addressed as follows:

LANDLORD:

David R. Cobb

3575 Brown Road

Madisonville, KY 42431

TENANT:

Armstrong Coal Company, Inc.

7733 Forsyth Blvd., Suite 1625

St. Louis, Missouri 63105

Such addresses may be changed from time to time by either party by providing notice as set forth
above. Notices mailed in accordance with the above provisions shall be deemed received on the
third day after posting.

GOVERNING LAW. This Lease shall be construed in accordance with the laws of the State of Kentucky.

ENTIRE AGREEMENT/AMENDMENT. This Lease Agreement contains the entire agreement of the parties and
there are no other promises, conditions, understandings or other agreements, whether oral or
written, relating to the subject matter of this Lease. This Lease may be modified or amended in
writing, if the writing is signed by the party obligated under the amendment.

 

 

SEVERABILITY. If any portion of this Lease shall be held to be invalid or unenforceable for any
reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that
any provision of this Lease is invalid or unenforceable, but that by limiting such provision, it
would become valid and enforceable, then such provision shall be deemed to be written, construed,
and enforced as so limited.

WAIVER. The failure of either party to enforce any provisions of this Lease shall not be construed
as a waiver or limitation of that party’s right to subsequently enforce and compel strict
compliance with every provision of this Lease.

BINDING EFFECT. The provisions of this Lease shall be binding upon and inure to the benefit of
both parties and their respective legal representatives, successors and assigns.

LANDLORD:

	 	 	 	 	 

	/s/
David R. Cobb
	 	/s/ Rebecca K. Cobb
	 	    Date: July 27, 2009
	David R. Cobb

	 	Rebecca K. Cobb	 	 

TENANT:

Armstrong Coal Company, Inc.

	 	 	 	 	 

	By:

	 	/s/
Martin D. Wilson
	 	Date: July 27, 2009
	 

	 	Martin Wilson, President, Armstrong Coal Company, Inc.,

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