Document:

EX-10.22

 Exhibit 10.22 

 

					
	 

	  		  	 Corporate Fuels & By-Products
 220 West Main Street
 Louisville, KY 40202

 December 8, 2008 
 Armstrong Coal Company 
 407 Brown Road 
 Madisonville, Kentucky 42131 
 Attn: Mr. Kenny Allen 

 

	Ref:	LG&E/KU Coal Supply Agreement No. J07032 

 Dear Kenny: 
 This letter restates and amends our letter to you dated August 1, 2008 in its
entirety and is to amend the Base Price parameters noted below of the above referenced Coal Supply Agreement, but only with respect to the time periods as described below. Louisville Gas and Electric Company and Kentucky Utilities Company agree the
following revised pricing will apply to all coal shipped via truck to Yellow Banks Dock during the time periods noted below. 
 From
August 1, 2008 to September 30, 2008 the Base Price shall be $40.39 per ton FOB, Yellow Banks Dock located at Mile Point 751 on the Ohio River (which Base Price covers the coal and trucking cost to deliver the coal to Yellow Banks Dock).
Louisville Gas and Electric Company and Kentucky Utilities Company shall be responsible for all costs to transload the coal into barges at Yellow Banks Dock. 
 From October 1, 2008 to December 31, 2008 the Base Price shall be $41.56 per ton FOB, Yellow Banks Dock located at Mile Point 751 on the Ohio River (which Base Price covers the coal and trucking
cost to deliver the coal to Yellow Banks Dock). Louisville Gas and Electric Company and Kentucky Utilities Company shall be responsible for all costs to transload the coal into barges at Yellow Banks Dock. 

In all other respects, the terms, pricing and other conditions of the Coal Supply Agreement shall remain the same. 

 Please indicate your agreement to these terms by signing where indicated on both of the originals and
returning both originals to me. I will have them signed on behalf of LG&E/KU and return a fully executed original to you. 
  

					
	Sincerely,	 		 	
			
	/s/ W. G. Gilbert, Jr.	 		 	 
	 W. G. Gilbert, Jr.
 Senior
Fuels and Transportation Administrator
	 		 	

  

									
	 Acknowledged and agreed:
 Armstrong Coal Company
	 		 	 Louisville Gas and Electric Company
 Kentucky Utilities Company

					
	By:	 	Kenneth E. Allen	 		 	By:	 	/s/
	Title:	 	V. P. Operations	 		 	Title:	 	Director, Corporate Fuels and By-Products
	Date:	 	12-10-2008	 		 	Date:	 	12/17/08EX-10.23

 Exhibit 10.23 

 

							
	

	 	 	 	 	 	 Corporate Fuels & By-Products
 220 West Main Street
 Louisville, KY40202

April 1, 2009 
 Armstrong Coal Company

 407 Brown Road 
 Madisonville,
Kentucky 42131 
 Attn: Mr. Kenny Allen 
  

	 	Ref:	LG&E/KU Coal Supply Agreement No. J07032 Amendment  

For Temporary Price Change 
 Dear Kenny: 
 This letter is to amend the Base Price parameters noted below of the above referenced
Coal Supply Agreement, but only with respect to the time period as described below. 
 Louisville Gas and Electric Company and Kentucky
Utilities Company agree the following revised pricing will apply to all coal shipped via truck from Midway Mine to Armstrong Dock (formerly known as Smallhous Dock) during the time period from April 1, 2009 to December 31, 2009.

 From April 1, 2009 to December 31, 2009 the Base Price shall be the Base Price plus adjustment (per Section 8.4), plus $1.90
per ton, FOB Barge Armstrong Dock located at Mile Point 76.6 on the Green River (which Base Price covers the coal, trucking cost to deliver the coal to Armstrong Dock and all costs to transload the coal into barges at Armstrong Dock). The Base Price
effective April 1, 2009 shall be $29.50 per ton and may be adjusted July 1 and October 1, 2009. 
 In all other respects, the
terms, pricing and other conditions of the Coal Supply Agreement shall remain the same. 
 Please indicate your agreement to these terms by
signing where indicated on both of the originals and returning both originals to me. I will have them signed on behalf of LG&E/KU and return a fully executed original to you. 

	
	Sincerely,
	
	/s/ W. G. Gilbert, Jr.
	 W. G. Gilbert, Jr.
 Senior
Fuels and Transportation Administrator

  

							
	 Acknowledged and agreed:
	 	Louisville Gas and Electric Company
	 Armstrong Coal Company
	 	Kentucky Utilities Company
				
	 By:
	 	/s/ Kenneth E. Allen	 	By:	 	/s/
	 Title:
	 	V. P. Operations	 	Title:	 	Director, Corporate Fuels & By-Products
	 Date:
	 	4-3-2009	 	Date:	 	4/7/09EX-10.24

 Exhibit 10.24 
 ARMSTRONG COAL COMPANY, INC. 
 LG&E/KU Contract No. J07032

 Amendment No. 2 
 AMENDMENT NO. 2 TO COAL SUPPLY AGREEMENT  
 THIS AMENDMENT NO. 2
TO COAL SUPPLY AGREEMENT (“Amendment No. 2”) is entered into effective as of December 22, 2009, by and between LOUISVILLE GAS AND ELECTRIC COMPANY (“LG&E”) and KENTUCKY UTILITIES COMPANY (“KU”), each a
Kentucky corporation, 220 West Main Street, Louisville, Kentucky 40202 (individually the “Buyer”, as applicable) and ARMSTRONG COAL COMPANY, INC., a Delaware Corporation, 407 Brown Road, Madisonville, Kentucky 42431 (“Seller”).
In consideration of the agreements herein contained, the parties hereto agree as follows: 
  

	I.	AMENDMENTS 

 The Coal
Supply Agreement heretofore entered into by the parties, effective as of January 1, 2008 and identified by the Contract Number set forth above, as amended by that certain Amendment No. 1 to Coal Supply Agreement, dated effective
July 1, 2008 (“Amendment No. 1”), is hereby amended as follows (the January 1, 2008 Coal Supply Agreement as amended Amendment No. 1 and by this Amendment No. 2, is hereafter referred to as the
“Agreement”): 
  

	A.	TERM 

  

	 	A.1	Section 2 Term is deleted in its entirety and replaced with the following: 

SECTION 2. TERM. The term of this Agreement shall commence on January 1, 2008 and shall continue through
December 31, 2016, unless terminated earlier pursuant to any of the terms set forth herein. 
  

	B.	QUANTITY 

  

	 	B.1	Section 3.1 Base Quantity. The annual Base Quantity (i.e. all of Section 3.1 except the last two paragraphs) is revised to read as follows, all
other terms and conditions set forth in the last two paragraphs of Section 3.1 (dealing with Make-up Tons) shall remain as stated in the Agreement: 

 Section 3.1 Base Quantity. Subject to the terms and conditions set forth in this Agreement, Seller shall sell and deliver, or cause to be delivered, and Buyer shall purchase and receive, or
cause to be received, the following annual base quantity of coal (“Base Quantity”): 
  

  
 1 

 ARMSTRONG COAL COMPANY, INC. 

LG&E/KU Contract No. J07032 
 Amendment No. 2 
  

					
	 YEAR
	  	BASE QUANTITY (TONS)	 
	 2008
	  	 	600,000	  
	 2009
	  	 	2,200,000	  
	 2010
	  	 	1,800,000	  
	 2011
	  	 	2,100,000	  
	 2012
	  	 	2,100,000	  
	 2013
	  	 	2,100,000	  
	 2014
	  	 	2,100,000	  
	 2015
	  	 	2,100,000	  
	 2016
	  	 	900,000	  

 Buyer shall have the right to nominate up to 75% of the Base Quantity for year 2010 and
for each year thereafter to be delivered by rail. Buyer shall make such nomination for each year to Seller in writing by September 1 of the preceding year. 
 For year 2010, all coal will be Quality 1 (as described in Section 6.1 of this Agreement). 
 For years 2011-2016, Buyer will have the option to nominate up to 25% of the coal as Quality 2 (as described in Section 6.1 of this Agreement). 

 

	C.	PRICE 

  

	 	C.1	Section 8.1(a) Base Price is modified and shall read as follows: 

The base price (“Base Price”) of the coal to be sold hereunder will be firm and will be based on Dollars/Ton and will be
determined by the calendar year in which the coal is delivered to Buyer as provided in Section 5 hereto and in accordance with the following schedule: 
  

									
	YEAR	  	QUALITY 1	 	  	QUALITY 2	 
	 2008
	  	$	27.31	  	  	$	28.30	  
	 2009
	  	$	27.60	  	  	$	28.76	  
	 2010
	  	$	28.18	  	  	 	N/A	  
	 2011
	  	$	28.19	  	  	$	29.61	  
	 2012
	  	$	28.35	  	  	$	29.77	  
	 2013
	  	$	28.35	  	  	$	29.77	  
	 2014
	  	$	28.50	  	  	$	29.92	  
	 2015
	  	$	28.50	  	  	$	29.92	  
	 2016
	  	$	30.25	  	  	$	31.67	  

 Notwithstanding the foregoing, the base price for any Make-up Tons (as such term is defined in Section 3.1 hereof)
shall be the Base Price for the applicable quality in the calendar year in which such Make-up Tons should have been delivered and not the Base Price for the applicable quality in the Make-up Year (as such term is defined in Section 3.1 hereof).

  
 2 

 ARMSTRONG COAL COMPANY, INC. 

LG&E/KU Contract No. J07032 
 Amendment No. 2 
  

	 	C.2	Section 8.1 (b) Reopener is deleted in its entirety and is no longer applicable. 

 

	D.	LIMITATION ON ENVIRONMENTAL FORCE MAJEURE 

 D.l. Section 10.3 Limitation on Environmental Force Majeure is hereby added as a new section, and shall read as follows: 

§10.3 Limitation on Environmental Force Majeure. Notwithstanding anything to the contrary set forth in §10.2 above, a
delay or other failure in the issuing of one or more permits (that are necessary on the date hereof pursuant to an existing environmental law, regulation, policy and/or restriction to commence operations with respect to any Coal Property) shall not
be the basis, in whole or in part, of any claim by Seller under §10.2, whether such delay or failure relates to the reinterpretation of existing environmental laws, regulations, policies and/or restrictions, to a change in the interpretation,
or to the enforcement thereof; provided however, this §10.3 shall not apply with respect to delays or other failures in the issuing of one or more necessary permits to the extent such permits are new permits required pursuant to an
environmental law, regulation, restriction or policy adopted after September 1, 2009 with respect to the Coal Property or other Armstrong facilities then being utilized to provide coal hereunder. In the event of the occurrence of a
Section 10.2 Settlement Payment Termination Date (as such term is defined in Section 1.1 of that certain Settlement Agreement and Release entered into by the parties hereto as of even date herewith) and subsequently one or more of the
permits necessary for operation of the Equality Boot mine (or other source as contemplated in Section 1.1 of the Settlement and Release) is stayed, revoked or otherwise rendered ineffective by a governmental entity having jurisdiction, nothing
in this Section 10.3 shall act as a limitation on any claim that Seller may have under Section 10.2 with respect to such stayed, revoked or ineffective permits from and after the time of such stay, revocation or rendering ineffective.

  

	II.	STATUS OF AGREEMENT 

 As
amended hereby, the Agreement is hereby ratified and confirmed and shall continue in full force and effect. 

  
 3 

 ARMSTRONG COAL COMPANY, INC. 

LG&E/KU Contract No. J07032 
 Amendment No. 2 
  

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 on
the day and year below written, but effective as of the day and year first set forth above. 
  

									
	LOUISVILLE GAS AND ELECTRIC COMPANY	 		 	ARMSTRONG COAL COMPANY, INC.
					
	By:	 	 /s/ David S. Sinclair
	 		 	By:	 	/s/ Martin Wilson
	Name:	 	David S. Sinclair	 		 	Name:	 	Martin Wilson
	Title:	 	VP Energy Marketing	 		 	Title:	 	President
	Date:	 	December 18, 2009	 		 	Date:	 	December 22, 2009
				
	KENTUCKY UTILITIES COMPANY	 		 		 	
					
	BY:	 	/s/ David S. Sinclair	 		 		 	
	Name:	 	David S. Sinclair	 		 		 	
	Title:	 	VP Energy Marketing	 		 		 	
	Date:	 	December 18, 2009	 		 		 	

  
 4

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