Document:

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                                                                   EXHIBIT 10.16

CONFIDENTIAL TREATMENT REQUESTED

                     AMENDMENT NO. 1 TO COAL SALES AGREEMENT

         This AMENDMENT NO. 1 TO COAL SALES AGREEMENT (this "Amendment") dated
February 28, 2001, by and between PONTIKI COAL, LLC, a Delaware limited
liability company, successor by merger to Pontiki Coal Corporation ("Seller"),
and AEI COAL SALES COMPANY, INC., a Kentucky corporation ("Buyer").

                                    RECITALS

         A. Buyer and Seller are parties to that certain Coal Sales Agreement
#PON98-01, dated October 3, 1998 (the "Agreement"). Capitalized terms not
otherwise defined herein shall have the meaning set forth in the Agreement.

         B. Buyer and Seller wish to amend certain provisions of the Agreement,
as set forth herein.

         NOW, THEREFORE, in consideration of the mutual promises hereby made,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         1.       Amendments.  The Agreement is hereby amended as follows:

                  (a) All references in the Agreement to "Pontiki Coal
Corporation" are hereby deleted in their entirety and replaced with "Pontiki
Coal, LLC."

                  (b) All references in the Agreement to "MAPCO Coal Sales" and
"MAPCO Coal Sales, a division of MAPCO Coal, Inc." are hereby deleted in their
entirety and replaced with "Alliance Coal Sales, a division of Alliance Coal,
LLC."

                  (c) All references in the Agreement to "A.E.I. Coal Sales,
Inc." are hereby deleted in their entirety and replaced with "AEI Coal Sales
Company, Inc."

                  (d) A second sentence is hereby added to the "QUANTITY"
section of the Agreement as follows: "Notwithstanding anything else contained in
this Agreement, in addition to the ***** net tons currently committed to be
delivered during *****, Seller shall deliver an additional ***** net tons
ratably over the last ***** of said year. The purchase price for said tons shall
be $***** per net ton if paid via ***** Payment, or $***** per net ton if Seller
has exercised its option for Buyer to pay via ***** Payment pursuant to Section
1(e) of this Amendment, and the Btu specifications for said tons shall be the
amended Btu specifications set forth in this Amendment."

----------
*****denotes confidential information with respect to which a separate
confidential treatment request has been filed with the Securities and Exchange
Commission.

<PAGE>   2

                  (e) The section of the Agreement entitled "PRICE" is hereby
deleted in its entirety and replaced with the following:

              "PRICE/PAYMENT: Seller shall have the option (exercisable in
         accordance with the next two sentences) to require payment by Buyer by
         (a) ***** or (b) *****; provided, however, that nothing herein shall
         abrogate Seller's rights at law or equity, including under KRS Section
         *****.

<TABLE>
<S>                      <C>                              <C>
   "***** PRICE:            Pontiki Mine
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****

   "***** PRICE:            Pontiki Mine
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
                         ***** thru *****                 Invoice Price FOB Railcars at Mine            $*****
</TABLE>

         ***** Seller's wire account instructions are as follows:

         Alliance Coal, LLC
         c/o Bank One, NA. Chicago, IL
         ABA No. 071000013
         Account No. 55-63968.

         Remittance may come directly from Buyer, *****, ***** or other
         customers of Buyer acceptable to Seller. *****

                  (f) The section of the Agreement entitled "QUALITY
SPECIFICATIONS" is hereby deleted in its entirety and replaced with the
following:

<TABLE>
<CAPTION>

"QUALITY SPECIFICATIONS:                      Minimum             Maximum        Typical           Condition
------------------------
<S>                    <C>                    <C>                 <C>             <C>              <C>
Pontiki Mine           BTU                    *****/LB                            *****/LB         As Received
                       Moisture                                     *****%                         As Received
                       Ash                                          *****%                         As Received
                       S02/MMBtu                                    *****LB                        As Received
</TABLE>

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Size:    2" x 0"

Above mine specs apply on a monthly weighted average basis, except as otherwise
provided in Attachment A. The coal shall comply with all other quality
specifications set forth in Attachment A."

                  (g) The section of the Agreement entitled "PREMIUM/PENALTY
PROVISIONS" is hereby deleted in its entirety and replaced with the following:

         "PREMIUM/PENALTY AND TONNAGE ADJUSTMENT PROVISIONS:

         Quality adjustments calculated on semi-monthly weighted average.
         Fractions pro rata.

         Btu: Premium/Penalty of $*****/nt for each ***** Btu above/below *****.
         $***** x ((Actual-*****) / *****) x tons received = Adjustment.

         ***** Seller shall invoice Buyer for quality adjustments and
         estimate-to-actual tonnage adjustments with shipment dates and actual
         weights.

         See Attachment A for additional premium/penalty provisions."

                  (h) The section of the Agreement entitled "PAYMENT TERMS" is
hereby deleted in its entirety and not replaced.

                  (i) The section of the Agreement entitled "GOVERNMENT ACTION"
is hereby deleted in its entirety and replaced with the following:

         "GOVERNMENTAL ACTION: Seller will receive the benefit of Buyer's
         Governmental Action Clause with Customer, a copy of which is attached
         as Exhibit A hereto and incorporated herein by reference."

                  (j) Section 2 of Attachment A is hereby deleted in its
entirety and replaced with the following:

         "2. RISK OF LOSS. Upon completion of loading of a railcar, the risk of
         loss of coal in that railcar shall be Buyer's."

                  (k) The last sentence of Section 6 of Attachment A is hereby
deleted in its entirety and replaced with the following: "Deliveries of coal
excused by a circumstance of force majeure shall not be made up unless mutually
agreed upon by the parties hereto.

                  (l) The subsection of Section 13 of Attachment A entitled
"SO(2)" is hereby deleted in its entirety and replaced with the following:

         "S02. In no event shall any individual trainload shipment have sulfur
         in excess of ***** lbs. S02/MMBtu. Seller agrees to notify Buyer if
         any shipment of coal hereunder exceeds ***** lbs. S02/MMBtu within
         twenty-four (24) hours after it is loaded. Buyer shall have the right
         to reject or re-consign such shipment, at Seller's expense, in which
         event Seller shall reimburse Buyer for its actual costs incurred
         including, but not limited

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         to, rail transportation, diversion, rerouting and railcar demurrage;
         provided, however, that Buyer shall use commercially reasonable efforts
         to mitigate any such costs. In the event that Buyer and Buyer's
         customer accept the shipment and Buyer incurs penalties for excess
         S02/MMBtu from Buyer's customer, Seller shall reimburse Buyer any costs
         incurred in connection with such penalties including the cost of
         providing emission allowances; provided, however, that Buyer shall use
         commercially reasonable efforts to mitigate any such costs.
         Notwithstanding anything to the contrary set forth within this
         paragraph, before Buyer rejects or re-consigns a shipment or Buyer
         accepts the shipment and incurs penalties for excess S02/MMBtu from
         Buyer's customer, Buyer shall notify Seller of Buyer's intention to
         reject, re-consign or incur penalties, and Seller shall have the right
         to either (i) re-purchase the shipment from Buyer and immediately pay
         Buyer by wire transfer the payment Seller previously received from
         Buyer for such shipment or (ii) reduce Buyer's accounts receivable
         account balance for the value of such shipment if payment has not
         already been received by Seller from Buyer for such shipment, after
         which, in either case of (i) or (ii), Seller shall regain title to and
         have the right to re-consign said shipment. Seller shall reimburse
         Buyer for its actual rail related transportation costs (if any)
         incurred set forth hereinabove within this paragraph as a result of
         Seller re-consigning any such shipment, which re-consignment shall be
         at Seller's expense."

                  (m) Section 15 of Attachment A is hereby deleted in its
entirety and replaced with the following: "Seller may, but shall not be required
to, supply coal from other sources that conform to the coal quality requirements
of the Agreement, provided that Seller shall give Buyer at least forty-five (45)
days prior notice thereof. The cost of such substitute coal shall not exceed the
delivered cost per ton for coal to be supplied from the source mine shown on the
face of this Agreement, and Seller shall bear any increased transportation
costs. Any substitute coal that Seller may provide shall be sold to Buyer under
the same terms and conditions of this Agreement. Seller's right to furnish
substitute coal shall not affect it right to claim force majeure because of
events occurring at the mine."

                  (n) Section 17 of Attachment A is hereby deleted in its
entirety and replaced with the following:

          "17. No Defaults. The parties hereto mutually acknowledge and agree
          that: (a) as of the date of this Amendment no condition exists which,
          with the giving of notice or the lapse of time or both, would
          constitute a default under the Agreement; and (b) all amounts due and
          owing under this Agreement as of the date hereof have been satisfied
          by the party responsible for such payments (other than with respect to
          payments for any premium or penalty adjustments still outstanding in
          the ordinary course of business)."

                  (o) Section (a)(1) of Attachment B to the Agreement is hereby
deleted in its entirety and replaced with the following:

         "(1)     On or prior to the first (1st) day of each calendar month
                  during the term hereof, Seller shall provide Buyer with a
                  tentative schedule of monthly coal shipments during the next
                  calendar month. Buyer

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                  shall promptly review this schedule and notify Seller of any
                  modifications within ten (10) business days of receipt. Buyer
                  and Seller shall then agree on the tentative monthly shipping
                  schedule for the next calendar month on or prior to the
                  twentieth (20th) day of such calendar month."

         2. Conflicting Language. To the extent that any language contained in
the Agreement conflicts with any language contained in this Amendment, the
language contained in this Amendment shall control.

         3. Counterparts. The Amendment may be executed in any number of
counterparts, including by means of facsimile, each of which shall be an
original, but all of which together shall constitute one and the same
instrument.

         4. Ratification As Amended. Except as amended by this Amendment, the
Agreement remains unchanged and in full force and effect.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment as of the date first set forth above.

SELLER:                                 PONTIKI COAL, LLC

                                        By:  /s/ GARY J. RATHBURN
                                           -------------------------------------

                                        Name: Gary J. Rathburn
                                              ----------------------------------

                                        Title: Senior Vice President - Marketing
                                              ---------------------------------

BUYER:                                  AEI COAL SALES COMPANY, INC.

                                        By:  /s/ MARC MERRITT
                                             ----------------------------------

                                        Name: Marc Merritt
                                              ---------------------------------

                                        Title: President
                                              ---------------------------------

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<PAGE>   7
CONFIDENTIAL TREATMENT REQUESTED

                      EXHIBIT A--GOVERNMENTAL ACTION CLAUSE

5.2 Buyer and Sellers recognize that the prices set forth in Paragraph 5.1 may
require adjustment, either increase or decrease, because of the imposition of
federal or state legislation or regulation after July 1, 1996, or any changes in
the interpretation and enforcement of existing federal or state requirements
after July 1, 1996, that impose or change a tax, assessment or other
governmental charge based on the volume of tons produced or the price of coal
sold by Sellers under this Agreement. In the event of such an imposition, either
party may submit to the other party detailed documentation of the proposed price
adjustment, and Sellers and Buyer shall meet to discuss and attempt to agree
upon an adjustment to reflect the actual change in Sellers' costs.

         In the event that Sellers elect to supply coal from sources other than
         Marrowbone, the provisions of this Paragraph 5.2 shall only apply to
         the price of coal from such sources if (i) Sellers purchase such coal
         for resale to Buyer under a contract with a term of at least one (1)
         year, and (ii) the contract between Sellers and the supplier of such
         coal provides for the payment by Sellers to the supplier of the types
         of costs described in this Paragraph 5.2, including any such costs in
         effect at the time Sellers execute a contract for the purchase of coal
         from such sources.

         In the event that Sellers elect to blend coal subject to price
         adjustments pursuant to this Paragraph 5.2 with other coals, only the
         price for the percentage of such coal supplied to Sellers that is
         subject to this Paragraph 5.2 shall be adjusted.

         In the event Sellers and Buyer are unable to agree as to the amount the
         price per ton should be increased or decreased, then the matter shall
         be submitted to an independent third party experienced in the matters
         in question that is acceptable to both Sellers and Buyer. The cost of
         such third party shall be borne equally by Buyer and Sellers. The price
         increase or decrease per ton, as determined by the independent third
         party, shall be binding on both Sellers and Buyer; provided, however,
         that any increase shall not exceed the amount previously proposed by
         Sellers, and any decrease shall not exceed the amount previously
         proposed by Buyer. In the event a third party cannot be agreed upon,
         the provisions of Paragraph 18.0, Third Party Selection shall apply.

18.0     Third Party Selection. In the event that the parties are unable to
         agree upon an independent third party to resolve matters referenced in
         Paragraphs 5.2, 7.4, and/or 8.3, the Center for Public Resources, New
         York, shall appoint an independent third party qualified in such
         matters to render a binding decision regarding any such disagreement
         pursuant to these three Paragraphs.

                                       7<PAGE>   1
                                                                   EXHIBIT 10.17

               AMENDED AND RESTATED PUT AND CALL OPTION AGREEMENT

         AMENDED AND RESTATED PUT AND CALL OPTION AGREEMENT, dated as of
February 12, 2001 (the "Agreement"), between ARH WARRIOR HOLDINGS, INC., a
Delaware corporation ("AWH"), and ALLIANCE RESOURCE PARTNERS, L.P., a Delaware
limited partnership (the "MLP"), amending and restating that certain Put and
Call Option Agreement, dated as of January 26, 2001 (the "Original Put and Call
Agreement"), between AWH and the MLP.

                                   WITNESSETH:

         WHEREAS, AWH has formed Warrior Coal, LLC, a Delaware limited liability
company ("Warrior Coal"), and owns all of the limited liability company member
interests in and to Warrior Coal; and

         WHEREAS, contemporaneously with the execution and delivery of the
Original Put and Call Agreement, Warrior Coal entered into (i) a Stock Purchase
and Sale Agreement, dated as of the date hereof (the "Stock Purchase
Agreement"), among Warrior Coal, as purchaser, and David Roberts, Paul Roberts
and Julie Hober, as sellers, pursuant to which Warrior Coal purchased all of the
issued and outstanding shares of capital stock of Warrior Coal Corporation
("WCC"), Warrior Coal Mining Company ("WCMC") and Roberts Bros. Coal Co., Inc.
("RBCC"), and (ii) an Asset Purchase and Sale Agreement, dated as of the date
hereof (the "Asset Purchase Agreement"), among Warrior Coal, as purchaser, and
Christian Coal Corp. and Richland Mining Co., Inc., as sellers, pursuant to
which Warrior Coal purchased certain assets, and assumed certain liabilities, of
Christian Coal Corp. and Richland Mining Co., Inc.;

         WHEREAS, contemporaneously with the execution and delivery of the
Original Put and Call Agreement, SGP Land, LLC ("SGP Land") entered into an
Asset Purchase and Sale Agreement, dated as of the date hereof (as the same may
be amended, modified or supplemented from time to time in accordance with the
terms thereof, the "Cardinal Asset Purchase Agreement"), between SGP Land, as
purchaser, and Cardinal Trust, LLC ("Cardinal Trust"), as seller, pursuant to
which SGP Land purchased certain assets and assumed certain liabilities of
Cardinal Trust;

         WHEREAS, AWH has contributed capital to Warrior Coal for the purpose of
financing the acquisitions contemplated by the Stock Purchase Agreement and the
Asset Purchase Agreement;

         WHEREAS, contemporaneously with the execution and delivery of the Stock
Purchase Agreement and the Asset Purchase Agreement, AWH and the MLP entered
into the Original Put and Call Agreement, pursuant to which (i) AWH acquired the
right to put to the MLP during a specified period, and the MLP became obligated
to purchase from AWH, all of AWH's limited liability company interests in and to
Warrior Coal, upon the terms and conditions set forth therein, and (ii) the MLP
acquired the right to call from AWH during a specified period, and

<PAGE>   2

AWH became obligated to sell to the MLP, all of AWH's limited liability company
interests in and to Warrior Coal, upon the terms and conditions set forth
therein; and

         WHEREAS, AWH and the MLP desire to amend and restate the Original Put
and Call Agreement in its entirety upon the terms and conditions set forth
herein;

         NOW, THEREFORE, in consideration of the mutual agreements contained
herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, AWH and the MLP hereby agree as follows:

         Section 1. Definitions. Where used in this Agreement, the following
terms shall have the meanings set forth in this Section 1 (such meanings to be,
when appropriate, equally applicable to both the singular and plural forms of
the terms defined):

                  "Asset Purchase Agreement" shall have the meaning specified in
         the second Whereas clause hereof.

                  "AWH" shall have the meaning specified in the preamble hereof.

                  "Call Option" means the right of the MLP to purchase from AWH
         and to cause AWH to sell to the MLP (or its designee) Warrior Coal, as
         contemplated by Section 3 hereof.

                  "Call Option Period" shall mean the period from and including
         April 12, 2003 to and including December 31, 2006.

                  "Call Option Price" means the sum of (i) $10,000,000.00, (ii)
         an amount of interest equal to the product of (x) the amount set forth
         in clause (i) hereof multiplied by (y) twelve percent (12%) per annum,
         compounded annually (determined based on a 360-day year, actual days
         elapsed from January 26, 2001 up to (but not including) the date on
         which the purchase and sale of Warrior Coal shall be consummated in
         connection with the exercise of the Call Option), and (iii) an amount
         equal to the product of (x) the amount determined pursuant to clause
         (ii) hereof and (y) twenty-five percent (25%).

                  "Capital Lease" means, at any time, a lease with respect to
         which the lessee is required concurrently to recognize the acquisition
         of an asset and the incurrence of a liability in accordance with GAAP.

                  "Capital Lease Obligation" means, with respect to Warrior Coal
         or any Subsidiary thereof and a Capital Lease, the amount of the
         obligation of Warrior Coal or such Subsidiary as the lessee under such
         Capital Lease which would, in accordance with GAAP, appear as a
         liability on a balance sheet of Warrior Coal or such Subsidiary.

                  "Cardinal Asset Purchase Agreement" shall have the meaning
         specified in the third Whereas clause hereof.

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<PAGE>   3

                  "Cardinal Trust" shall have the meaning specified in the third
         Whereas clause hereof.

                  "Consolidated Subsidiary" means, with respect to any Person at
         any time, any Subsidiary the accounts of which would be consolidated
         with those of such first Person in its consolidated financial
         statements in accordance with GAAP.

                  "Debt" means, with respect to any Person, without duplication,

                           (a) its liabilities for borrowed money;

                           (b) its liabilities for the deferred purchase price
                  of property acquired by it (excluding accounts payable arising
                  in the ordinary course of business but including, without
                  limitation, all liabilities created or arising under any
                  conditional sale or other title retention agreement with
                  respect to any such property);

                           (c) its Capital Lease Obligations;

                           (d) all liabilities secured by any Lien with respect
                  to any property owned by such Person (whether or not it has
                  assumed or otherwise become liable for such liabilities);

                           (e) all its liabilities in respect of letters of
                  credit or instruments serving a similar function issued or
                  accepted for its account by banks or other financial
                  institutions (whether or not representing obligations for
                  borrowed money), other than any thereof incurred in the
                  ordinary course of business of such Person and which are
                  issued (i) to support such Person's obligations in respect of
                  workmen's compensation or unemployment insurance laws, the
                  payment or retirement benefits or performance guarantees
                  relating to coal deliveries or insurance deductibles and
                  aggregating, in the case of Warrior Coal and its Subsidiaries,
                  no more than $2,000,000 at any time outstanding for all of the
                  foregoing or (ii) in respect of current trade payables of such
                  Person; and

                           (f) any Guaranty of such Person with respect to
                  liabilities of a type described in any of clauses (a) through
                  (e) hereof.

                  Debt of such Person shall include all obligations of such
         Person of the character described in clauses (a) through (f) to the
         extent such Person remains legally liable in respect thereof
         notwithstanding that any such obligation is deemed to be extinguished
         under GAAP.

                  "GAAP" means generally accepted accounting principles
         consistently applied in the United States.

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<PAGE>   4

                  "Guaranty" and, with correlative meaning, "Guaranteed" means,
         with respect to any Person, any obligation (except the endorsement in
         the ordinary course of business of negotiable instruments for deposit
         or collection) of such Person guaranteeing or in effect guaranteeing
         any Debt of any other Person in any manner, whether directly or
         indirectly, including (without limitation) obligations incurred through
         an agreement, contingent or otherwise, by such person:

                           (a) to purchase such Debt or any property
                  constituting security therefor;

                           (b) to advance or supply funds (i) for the purchase
                  or payment of such Debt, or (ii) to maintain any working
                  capital or other balance sheet condition or any income
                  statement condition of any other person or otherwise to
                  advance or make available funds of the purchase or payment of
                  such Debt;

                           (c) to lease properties or to purchase properties or
                  services primarily for the purpose of assuring the owner of
                  such Debt of the ability of any other person to make payment
                  of the Debt; or

                           (d) otherwise to assure the owner of such Debt
                  against loss in respect thereof.

                  In any computation of the Debt of the obligor under any
         Guaranty, the Debt that is the subject of such Guaranty shall be
         assumed to be a direct obligation of such obligor. The amount of any
         Guaranty shall be equal to the outstanding amount of the Debt
         guaranteed, or such lesser amount to which the maximum exposure of such
         person shall have been specifically limited.

                  "Inventory" means inventory held for sale or lease in the
         ordinary course of business.

                  "Lien" means, with respect to any Person, any mortgage, lien,
         pledge, charge, security interest, production payment or other
         encumbrance, or any interest or title of any vendor, lessor, lender or
         other secured party to or of such Person under any conditional sale or
         other title retention agreement or Capital Lease, upon or with respect
         to any property or asset of such Person (including in the case of
         stock, stockholder agreements, voting trust agreements and all similar
         arrangements); provided, however, "Lien" shall not include any of the
         following: (i) any negative pledge, or (ii) any royalty interest or
         overriding royalty interest under any lease, sublease or other similar
         agreement entered into in the ordinary course of business.

                  "Material Adverse Effect" means a material adverse effect on
         the business, operations, affairs, financial condition, assets or
         properties of Warrior Coal and its Subsidiaries, taken as a whole
         (unless the context shall expressly require otherwise).

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                  "Original Put and Call Agreement" shall have the meaning
         specified in the preamble hereof.

                  "Permitted Liens" means each of the following:

                           (a) Liens for property taxes, assessments or other
                  governmental charges which are not yet due and payable and
                  delinquent or the validity of which is being contested in good
                  faith;

                           (b) statutory Liens of landlords and Liens of
                  carriers, warehousemen, mechanics, materialmen and other
                  similar Liens, in each case, incurred in the ordinary course
                  of business for sums not yet due and payable or the amount,
                  applicability or validity thereof is being contested by
                  Warrior Coal or any Subsidiary thereof on a timely basis in
                  good faith and in appropriate proceedings, and Warrior Coal or
                  such Subsidiary has established adequate reserves therefor in
                  accordance with GAAP on the books of Warrior Coal or such
                  Subsidiary.

                           (c) Liens incurred or deposits made in the ordinary
                  course of business (i) in connection with workers'
                  compensation, unemployment insurance and other types of social
                  security or retirement benefits, or (ii) to secure (or to
                  obtain letters of credit that secure) the performance of
                  tenders, statutory obligations, surety bonds, appeal bonds,
                  bids, leases, performance bonds, purchase, construction or
                  sales contracts and other similar obligations, in each case
                  not incurred or made in connection with the borrowing of
                  money, the obtaining of advances or credit or the payment of
                  the deferred purchase price of property;

                           (d) any attachment or judgment Lien for the payment
                  of money in an aggregate amount not to exceed $1,000,000,
                  provided that the execution or other enforcement of such Liens
                  is effectively stayed and the claims secured thereby are
                  contested by Warrior Coal or any Subsidiary thereof on a
                  timely basis in good faith and in appropriate proceedings, and
                  Warrior Coal or such Subsidiary has established adequate
                  reserves therefor in accordance with GAAP on the books of
                  Warrior Coal or such Subsidiary; and

                           (e) leases or subleases granted to others, zoning
                  restrictions, easements, licenses, reservations, provisions,
                  covenants, conditions, waivers, restrictions on the use of
                  property or irregularities of title (and with respect to
                  leasehold interests, mortgages, obligations, liens and other
                  encumbrances incurred, created, assumed or permitted to exist
                  and arising by, through or under a landlord or owner of the
                  leased property, with or without consent of the lessee), and
                  not interfering with, the ordinary conduct of the business of
                  Warrior Coal or any Subsidiary thereof, provided that such
                  Liens do not, in the aggregate, materially detract from the
                  value of such property or impair the use of such property.

                                       5
<PAGE>   6

                  "Person" shall mean an individual, partnership, limited
         liability company, corporation (including a business trust), joint
         stock company, trust, unincorporated association, joint venture or
         other entity, or a government or any political subdivision or agency
         thereof.

                  "Put Option" means the right of AWH to sell Warrior Coal to
         the MLP (or its designee) and to cause the MLP (or its designee) to
         purchase Warrior Coal from AWH, as contemplated by Section 2 hereof.

                  "Put Option Period" shall mean the ten day period from and
         including January 2, 2003 to and including January 11, 2003.

                  "Put Option Price" means the sum of (i) $10,000,000.00 and
         (ii) an amount of interest equal to the product of (x) the amount set
         forth in clause (i) hereof multiplied by (y) twelve percent (12%) per
         annum, compounded annually (determined based on a 360-day year, actual
         days elapsed from January 26, 2001 up to (but not including) the date
         on which the purchase and sale of Warrior Coal shall be consummated in
         connection with the Put Option).

                  "RBCC" shall have the meaning specified in the second Whereas
         clause hereof.

                  "SGP Land" shall have the meaning specified in the third
         Whereas clause hereof.

                  "SGP Revolving Credit Agreement" shall mean the Revolving
         Credit Agreement, dated as of January 26, 2001, between Alliance
         Resource GP, LLC, a Delaware limited liability company, as lender, and
         Warrior Coal, as borrower, as the same may be amended, modified or
         supplemented from time to time in accordance with the terms thereof.

                  "Stock Purchase Agreement" shall have the meaning specified in
         the second Whereas clause hereof.

                  "Subsidiary" means, with respect to any Person, any
         corporation, limited liability company, partnership, joint venture,
         association, trust or other entity of which (or in which) more than 50%
         of (a) the issued and outstanding shares of capital stock or
         partnership interests (or their equivalent) having ordinary voting
         power to elect a majority of the board of directors of such corporation
         (irrespective of whether at the time capital stock of any other class
         or classes of such corporation shall or might have voting power upon
         the occurrence of any contingency), (b) the interests in the capital or
         profits of such partnership, limited liability company, joint venture
         or association with ordinary voting power to elect a majority of the
         board of directors (or Persons performing similar functions) of such
         partnership, limited liability company, joint venture or association,
         or (c) the beneficial interests in such trust or other entity with
         ordinary voting power to elect a majority of the board of trustees (or
         Persons performing similar functions) of such trust or other entity, is
         at the time, directly or indirectly, owned or controlled by such
         Person,

                                       6
<PAGE>   7

         by such Person and one or more of its Subsidiaries, or by one or more
         of such Person's other Subsidiaries.

                  "Third Party Consents" shall have the meaning specified in
         Section 8 hereof.

                  "Warrior Coal" shall have the meaning set forth in the first
         Whereas clause hereof.

                  "WCC" shall have the meaning specified in the second Whereas
         clause hereof.

                  "WCMC" shall have the meaning specified in the second Whereas
         clause hereof.

         Section 2. Put Option. During the Put Option Period, AWH shall have the
right to put and sell to the MLP (or to any Subsidiary of the MLP designated by
the MLP), and the MLP (or such designee) shall have the obligation to purchase
from AWH, all of the limited liability company interests in and to Warrior Coal
held by AWH provided (i) AWH shall have given not less than ninety (90) days or
more than one hundred fifty (150) days written notice to the MLP prior to the
commencement of the Put Option Period of its desire to put Warrior Coal to MLP,
(ii) after giving effect to such put, the MLP (or such designee) shall own not
less than 100% of the limited liability company interests in and to Warrior
Coal, (iii) the MLP shall pay or cause to be paid to AWH the Put Option Price,
(iv) all Third Party Consents shall have been obtained or waived in writing and
(v) since January 26, 2001, there shall not have occurred a material adverse
change in the business, operations, affairs, financial condition, assets or
properties of Warrior Coal and its Subsidiaries, taken as a whole. Promptly
following the exercise by AWH of the Put Option, the parties hereto shall
cooperate with one another and shall negotiate in good faith a purchase and sale
agreement containing terms and conditions reasonable and customary for a
transaction of the type so contemplated, including representations and
warranties regarding AWH's title in and to the limited liability company
interests of Warrior Coal and Warrior Coal's title in and to the limited
liability company interests or capital stock (or their equivalent) of each
Subsidiary, if any, of Warrior Coal, for the purpose of consummating the sale of
Warrior Coal by AWH to the MLP (or such designee); provided, however, that in no
event shall the consideration payable by the MLP (or such designee) to AWH upon
consummation of such transaction be greater or less than the Put Option Price.
If the Put Option shall have been exercised, AWH and the MLP (or its designee)
shall consummate the purchase and sale of Warrior Coal during the Put Option
Period; provided, however, that if the purchase and sale of Warrior Coal in
connection with the exercise of such Put Option shall not have been consummated
during the Put Option Period and the parties hereto shall be diligently
proceeding in good faith and using their best efforts to consummate such
purchase and sale, then the right of AWH to put and sell Warrior Coal to the MLP
during the Put Option Period shall continue thereafter for not more than fifteen
(15) days to the extent necessary to consummate such transaction.

         Section 3. Call Option. During the Call Option Period, the MLP (or any
subsidiary of the MLP designated by the MLP) shall have the right to call and
purchase from AWH, and AWH shall have the obligation to sell to the MLP (or such
designee), all of the limited liability company interests in and to Warrior Coal
held by AWH provided (i) the MLP shall have given written notice to AWH, which
notice may not be given prior to the commencement of the Call

                                       7
<PAGE>   8

Option Period, (ii) after giving effect to such call, the MLP (or such designee)
shall own not less than 100% of the limited liability company interests in and
to Warrior Coal, (iii) the MLP shall pay or caused to be paid to AWH the Call
Option Price and (iv) all Third Party Consents shall have been obtained or
waived in writing. Promptly following the exercise by the MLP of the Call
Option, the parties hereto shall cooperate with one another and shall negotiate
in good faith a purchase and sale agreement, containing terms and conditions
reasonable and customary for a transaction of the type so contemplated,
including representations and warranties regarding AWH's title in and to the
limited liability company interests of Warrior Coal and Warrior Coal's title in
and to the limited liability company interests or capital stock (or their
equivalent) of each Subsidiary, if any, of Warrior Coal, for the purpose of
consummating the purchase of Warrior Coal by the MLP (or its designee) from AWH;
provided, however, that in no event shall the consideration payable by the MLP
(or such designee) to AWH upon consummation of such transaction be greater or
less than the Call Option Price. If the Call Option shall have been exercised,
AWH and the MLP (or its designee) shall enter into such purchase and sale
agreement as soon as reasonably practicable following (but not more than 90 days
after) receipt by AWH of such written notice; provided, however, that if the
purchase and sale of Warrior Coal in connection with the exercise of such Call
Option shall not have been consummated within such 90 days' period and the
parties hereto shall be diligently proceeding in good faith to consummate such
purchase and sale, then the right of the MLP to call and purchase Warrior Coal
from AWH during such 90 days' period shall continue thereafter for such period
of time as shall be reasonably necessary to consummate such transaction.

         Section 4. Representations and Warranties of the MLP.

         In order to induce AWH to enter into this Agreement, the MLP represents
and warrants as of the date hereof as follows:

                  (a) Existence, Power and Authority. The MLP is a limited
         partnership duly organized, validly existing and in good standing under
         the laws of the State of Delaware, and has full partnership power and
         authority to execute and deliver this Agreement and to carry out the
         transactions contemplated hereby.

                  (b) Authorization; Enforceable Obligations. This Agreement has
         been duly authorized, executed and delivered by the MLP and constitutes
         the legal, valid and binding obligation of the MLP, enforceable against
         it in accordance with its terms, except as such enforceability may be
         limited by general principles of the law of equity or by any applicable
         bankruptcy, reorganization, insolvency, moratorium or similar laws and
         laws affecting creditors' rights generally.

                  (c) No Legal Bar. The execution, delivery and performance by
         the MLP of this Agreement (i) do not or will not violate the
         certificate of limited partnership, or other formation document of the
         MLP, and (ii) do not or will not violate or conflict with any law,
         governmental rule or regulation or any judgment, writ, order,
         injunction, award or decree of any court, arbitrator, administrative
         agency or other governmental authority applicable to the MLP.

                                       8
<PAGE>   9

         Section 5. Representations and Warranties of AWH.

         In order to induce the MLP to enter into this Agreement, AWH represents
and warrants as of the date hereof as follows:

                  (a) Existence, Power and Authority. AWH is a corporation duly
         organized, validly existing and in good standing under the laws of the
         State of Delaware, with full corporate power and authority to carry on
         its business as currently conducted and has full corporate power and
         authority to execute and deliver this Agreement and to carry out the
         transactions contemplated hereby.

                  (b) Authorization; Enforceable Obligations. This Agreement has
         been duly authorized, executed and delivered by AWH and constitutes the
         legal, valid and binding obligation of AWH, enforceable against it in
         accordance with its terms. except as such enforceability may be limited
         by general principles of the law of equity or by any applicable
         bankruptcy, reorganization, insolvency, moratorium or similar laws and
         laws affecting creditors' rights generally.

                  (c) No Legal Bar. The execution, delivery and performance by
         AWH of this Agreement (i) do not or will not violate the certificate of
         incorporation, or by-laws or other formation document of AWH, and (ii)
         do not or will not violate or conflict with any law, governmental rule
         or regulation or any judgment, writ, order, injunction, award or decree
         of any court, arbitrator, administrative agency or other governmental
         authority applicable to AWH.

         Section 6. Affirmative and Negative Covenants. AWH covenants and agrees
that, until the earlier of (x) the expiration of the Call Option Period (or, in
the event the MLP shall have exercised its Call Option and, pursuant to the
proviso contained in the last sentence of Section 3 hereof, the parties hereto
shall be negotiating the sale of Warrior Coal beyond the Call Option Period,
then the expiration of such additional period of time as contemplated by such
proviso), (y) the sale of Warrior Coal by AWH to the MLP in connection with the
exercise of the Put Option or the Call Option, as the case may be, and (y) the
termination of this Agreement pursuant to Section 8 hereof:

                  (a) Compliance with Laws, Etc. AWH shall cause Warrior Coal
         and its Subsidiaries to comply, in all material respects, with all
         applicable laws, rules, regulations and orders, except to the extent
         failure so to comply, individually or in the aggregate, would not
         reasonably be expected to have a Material Adverse Effect.

                  (b) Preservation of Limited Liability Company Existence, Etc.
         AWH shall cause Warrior Coal and each Subsidiary thereof to preserve
         and maintain its existence, legal structure, rights (charter and
         statutory), permits, licenses, approvals, privileges, franchises and
         intellectual property; provided however, that AWH shall not be required
         to cause Warrior Coal or any Subsidiary thereof to preserve any right,
         permit, license, approval, privilege, franchise or intellectual
         property if the Board of Directors (or persons performing similar
         functions) of or on behalf of Warrior Coal or such Subsidiary shall
         determine that the preservation thereof is no longer desirable in the
         conduct of the

                                       9
<PAGE>   10

         business of Warrior Coal or such Subsidiary and that the loss thereof,
         individually or in the aggregate, would not reasonably be expected to
         have a Material Adverse Effect.

                  (c) Maintenance of Properties, Etc. AWH shall cause Warrior
         Coal and each Subsidiary thereof to maintain and preserve all of its
         properties that are used or useful in the conduct of Warrior Coal's or
         such Subsidiary's business in good working order and condition,
         ordinary wear and tear expected, except to the extent the failure to so
         maintain or preserve such properties, individually or in the aggregate,
         would not reasonably be expected to have a Material Adverse Effect.

                  (d) Disposition of Limited Liability Company Interests. AWH
         shall not sell, transfer, convey, pledge or otherwise dispose of any
         limited liability company interest in or to Warrior Coal, except as
         otherwise contemplated by Section 2 or 3 of this Agreement, and AWH
         shall not permit Warrior Coal to sell, transfer, convey, pledge or
         otherwise dispose of any of the limited liability company interests or
         capital stock (or their equivalent) of any Subsidiary of Warrior Coal.

                  (e) Liens, Etc. AWH shall not permit Warrior Coal or any
         Subsidiary thereof to create, incur, assume or suffer to exist any Lien
         on or with respect to any of its properties of any character
         (including, without limitation, accounts) whether now owned or
         hereafter acquired, or sign or file or suffer to exist under the
         Uniform Commercial Code of any jurisdiction, a financing statement that
         names Warrior Coal or any Subsidiary thereof as Debtor, or sign or
         suffer to exist any security agreement authorizing any secured party
         thereunder to file such financing statement, or assign any accounts or
         other right to receive income, except:

                           (i) Liens, if any, granted or created under or
                  pursuant to the Stock Purchase Agreement or the Asset Purchase
                  Agreement or any other agreement entered into in connection
                  therewith;

                           (ii) Permitted Liens;

                           (iii) with respect to Warrior Coal and its
                  Subsidiaries, taken as a whole, other Liens incurred in the
                  ordinary course of business securing obligations in an amount
                  not to exceed $1,000,000;

                           (iv) Liens existing on the date hereof;

                           (v) non-recourse Liens upon or in real property or
                  equipment acquired or held by Warrior Coal or any Subsidiary
                  thereof in the ordinary course of business to secure the
                  purchase price of such property or equipment or to secure
                  non-recourse, tax-exempt Debt incurred solely for the purpose
                  of financing the acquisition, construction or improvement of
                  any such property or equipment to be subject to such Liens, or
                  Liens exiting on any such property or equipment at the time of
                  acquisition (other than any such Liens created in
                  contemplation of such acquisition that do not secure the
                  purchase price), or extensions, renewals or

                                       10
<PAGE>   11

                  replacements of any of the foregoing for the same or a lesser
                  amount; provided, however, that no such Lien shall extend to
                  or cover any property other than the property or equipment
                  being acquired, constructed or improved, and no such
                  extension, renewal or replacement shall extend to or cover any
                  property not theretofore subject to the Lien being extended,
                  renewed or replaced;

                           (vi) the replacement, extension or renewal of any
                  Lien permitted by clauses (iii) through (v) above upon or in
                  the same property theretofore subject thereto or the
                  replacement, extension or renewal (without increase in the
                  amount or change in any direct or contingent obligor) of the
                  Debt secured thereby;

                           (vii) Liens on personal property leased under leases
                  (including synthetic leases) entered into by Warrior Coal or
                  any Subsidiary thereof which are accounted for as operating
                  leases in accordance with GAAP to the extent not prohibited
                  under Section 6(i) hereof;

                           (viii) easements, exceptions or reservations in any
                  property of Warrior Coal or any Subsidiary thereof granted or
                  reserved for the purpose of pipelines, roads, the removal of
                  oil, gas, coal or other minerals, and other like purposes, for
                  the joint or common use of real property, facilities and
                  equipment, which are incidental to, and do not materially
                  interfere with, the ordinary conduct of the business of
                  Warrior Coal or such Subsidiary; and

                           (ix) Liens on documents of title and the property
                  covered thereby securing obligations in respect of letters of
                  credit that are commercial letters of credit (i.e., obtained
                  for the purpose of paying all or a portion of the purchase
                  price of such property) to the extent not prohibited under
                  Section 6(f) hereof.

                  (f) Debt. AWH shall not permit Warrior Coal or any of its
         Subsidiaries to create, incur, assume or suffer to exist any Debt,
         except:

                           (i) Debt owed to the MLP or any Subsidiary thereof;

                           (ii) Debt created under the SGP Revolving Credit
                  Agreement;

                           (iii) Debt assumed under or pursuant to the Stock
                  Purchase Agreement or the Asset Purchase Agreement; and

                           (iv) non-recourse Debt secured by Liens permitted by
                  Section 6(e)(v) hereof.

                  (g) Mergers, Etc. AWH shall not permit Warrior Coal or any
         Subsidiary thereof to merge into or consolidate with any Person or
         permit any Person to merge into it or convey, transfer or lease
         substantially all of its assets in a single transaction or series of
         transactions to any Person, except that:

                                       11
<PAGE>   12

                           (i) any of WCC, WCMC and RBCC (or all of them) may
                  merge into Warrior Coal, provided that, in the case of any
                  such merger, Warrior Coal shall be the surviving entity and
                  shall have succeeded to all of the assets and properties of
                  WCC, WCMC or RBCC (or all of them), as the case may be;

                           (ii) any Subsidiary of Warrior Coal may merge into or
                  consolidate with any wholly owned Subsidiary of Warrior Coal,
                  provided that, in the case of any such merger or
                  consolidation, the Person formed by such merger or
                  consolidation shall be a wholly owned subsidiary of Warrior
                  Coal and such Person shall have succeeded to all of the assets
                  and properties of such Subsidiary; and

                           (iii) any Subsidiary of Warrior Coal may merge into
                  or consolidate with Warrior Coal, provided that Warrior Coal
                  is the surviving entity and shall have succeeded to all of the
                  assets and properties of such Subsidiary.

                  (h) Sales, Etc., of Assets. AWH shall not permit Warrior Coal
         or any Subsidiary thereof to sell, lease, transfer or otherwise dispose
         of any assets, or grant any option or other right to purchase, lease or
         otherwise acquire any assets, except;

                           (i) sales of Inventory in the ordinary course of
                  Warrior Coal's or its Subsidiaries' business;

                           (ii) with respect to Warrior Coal and its
                  Subsidiaries, taken as a whole, sale of assets that are
                  obsolete or no longer used or useful for fair value in an
                  aggregate amount not to exceed $500,000.00 over the term of
                  this Agreement;

                           (iii) sales of assets by Warrior Coal or any
                  Subsidiary thereof to the MLP or any Subsidiary thereof;

                           (iv) in a transaction authorized by Section 6(g)
                  hereof; and

                           (v) with respect to Warrior Coal and its
                  Subsidiaries, taken as a whole, sales of other assets with a
                  fair value in an amount not to exceed $500,000.00 individually
                  or $1,000,000.00 in the aggregate over the term of this
                  Agreement; provided however, that the purchase price paid to
                  Warrior Coal or any such Subsidiary for such asset shall be no
                  less than the fair market value of such asset at the time of
                  such sale and such sale shall be in the best interest of
                  Warrior Coal or such Subsidiary, as determined in good faith
                  by the Board of Directors (or other person performing such
                  functions) of Warrior Coal or such Subsidiary.

                  (i) Restricted Payments. AWH shall not permit Warrior Coal or
         any such Subsidiary thereof to declare or pay any dividends, repurchase
         or redeem any capital stock or other equity interest, return any
         capital to its members or shareholders as such, make any distribution
         of assets to its members or shareholders as such (each of the foregoing
         being a "Restricted Payment"), except that any wholly-owned Subsidiary
         of

                                       12
<PAGE>   13

         Warrior Coal shall be permitted to declare, make or incur a liability
         to make any such Restricted Payment to Warrior Coal or any wholly-owned
         Subsidiary of Warrior Coal.

                  (j) Lease Obligations. AWH shall not permit Warrior Coal or
         any Subsidiary thereof to create, incur, assume or suffer to exist any
         obligations as lessee (excluding for this purpose obligations as lessee
         under Capital Leases) (i) for the rental or hire of real or personal
         property in connection with any sale and leaseback transaction, (ii)
         for the rental or hire of other personal property of any kind under
         operating leases or agreements to lease having an original term of one
         year or more that would cause the direct and contingent liabilities of
         Warrior Coal and its Subsidiaries, taken as a whole, in respect of all
         such obligations to exceed $1,000,000.00 payable in any period of 12
         consecutive months, or (iii) for the rental or hire of other real
         property under leases or agreements to lease other than in the ordinary
         course of business.

                  (k) Amendments of Constitutive Documents. AWH shall not permit
         Warrior Coal or any Subsidiary thereof to amend its Certificate of
         Formation, limited liability company operating agreement, charter,
         by-laws, partnership agreement or other constituent document in any
         manner that has a Material Adverse Effect.

                  (l) Generally. Except for any transaction permitted under this
         Section 6, AWH shall not permit Warrior Coal or any Subsidiary thereof
         to enter into any transaction that is reasonably expected to have a
         Material Adverse Effect.

                  (m) No Amendments To Credit Agreement. AWH shall not permit
         Warrior Coal to amend or modify any term or condition of the SGP
         Revolving Credit Agreement (or any credit agreement refinancing such
         indebtedness) except for such amendments or modifications thereof that
         do not increase or alter in any material respect the obligations of
         Warrior Coal thereunder or have a Material Adverse Effect.

         Section 7. Default; Termination. In the event that a party hereto shall
have failed to perform or comply with in any material respect any agreement or
covenant binding upon such party (such defaulting party, the "Defaulting Party",
and the non-defaulting party, the "Non-Defaulting Party") and such default shall
have continued unremedied for more than 45 days after receipt of notice in
writing of such default from the Non-Defaulting Party (or such longer period as
shall be reasonably necessary to cure such default provided the Defaulting Party
is diligently proceeding in good faith to cure such default), then the
Non-Defaulting Party may, by the giving of not less than 15 days' written notice
to the Defaulting Party, terminate this Agreement. In the event of such
termination, the non-defaulting party shall be entitled to such remedies as are
available to it under applicable law.

         Section 8. Further Assurances. In the event that the Put Option is
exercised by AWH or the Call Option is exercised by the MLP, each party hereto
shall, at their own expense, cooperate with one another in good faith and
execute and deliver such additional documents and take such further actions as
such other party hereto may reasonably request in order to more fully give
effect to the purposes and intent of this Agreement, to carry out the terms
hereof and to fully and completely convey Warrior Coal to the MLP (or its
designee) as contemplated hereby.

                                       13
<PAGE>   14

Without limiting the foregoing, the parties hereto agree to use their
commercially reasonable efforts to obtain the consent of such third parties,
including the consents of all lenders to the MLP or any of its Subsidiaries, if
required (collectively, the "Third Party Consents"), as shall be necessary or
appropriate for the purpose of consummating the sale of Warrior Coal by AWH to
the MLP as contemplated by this Agreement.

         Section 9. Amendment and Restatement. The parties hereto agree that the
Original Put and Call Agreement is amended and restated in its entirety upon the
terms and conditions contained herein.

         Section 10. Miscellaneous.

                  (a) Notices. Any notice required or permitted hereunder is to
         be in writing and may be given by telecopy, telex, cable or other
         customary means of electronic communication or by registered or
         certified mail (return receipt requested) or express courier, postage
         prepaid. All notices, statements, requests and demands given to or made
         upon any party hereto in accordance with the provisions of this
         Agreement shall be deemed to have been given or made (i) in the case of
         notice delivered by overnight express courier, one business day after
         the business day such notice was delivered to such courier, (ii) in the
         case of notice delivered by first class mail, three business days after
         being deposited in the mail, postage prepaid, return receipt requested,
         (iii) in the case of notice by hand, when delivered, or (iv) in the
         case of notice by any customary means of telecommunication, when sent
         provided confirmation of receipt or answer back has been received, in
         each case if addressed:

         to AWH, to it at:

                  ARH Warrior Holdings, Inc.
                  1717 South Boulder Avenue
                  Tulsa, OK 74119
                  Attention:  Thomas L. Pearson
                  Telephone: (918) 295-7606
                  Telecopy: (918) 295-7361

         to the MLP, to it at:

                  Alliance Resource Partners, L.P.
                  c/o Alliance Resource Management, L.P.
                  1717 South Boulder Avenue
                  Tulsa, OK 74119
                  Attention:  Michael L. Greenwood
                  Telephone: (918) 295-7622
                  Telecopy: (918) 295-7357

                                       14
<PAGE>   15

         or such other address for notice as any party hereto may designate for
         itself in a notice to the other party, except in cases where it is
         expressly provided herein that such notice, statement, request or
         demand shall not be effective until received by the party to whom it is
         addressed.

                  (b) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
         CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF OKLAHOMA, WITHOUT
         GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS.

                  (c) Assignment. Except as otherwise permitted hereunder, no
         party to this Agreement shall assign its rights or delegate its
         obligations hereunder to any other Person without the prior written
         consent of the other party hereto.

                  (d) Integration. This Agreement constitutes the entire
         agreement between AWH and the MLP with respect to the subject matter
         hereof and there are no promises, undertakings, representations or
         warranties by AWH or the MLP relative to the subject matter hereof not
         expressly set forth or referred to herein.

                  (e) 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.

                  (f) Counterparts. This Agreement may be executed in any number
         of counterparts and by each party 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.

                  (g) Headings, Bold Type and Table of Contents. The section
         headings, subsection headings, and bold type used herein have been
         inserted for convenience of reference only and do not constitute
         matters to be considered in interpreting this Agreement.

                                       15
<PAGE>   16

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first set forth above.

                                  ARH WARRIOR HOLDINGS, INC.

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

                                  ALLIANCE RESOURCE PARTNERS, L.P.

                                  By: Alliance Resource Management
                                      GP, LLC, its Managing General
                                      Partner

                                      By: /s/ Michael L. Greenwood
                                          --------------------------------------
                                          Name:  Michael L. Greenwood
                                          Title: Senior Vice President, Chief
                                                 Financial Officer and Treasurer

                                       16

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