Document:

Uncommitted Line of Credit and Reimbursement Agreement

 Exhibit 10.2 

Uncommitted Line of Credit and Reimbursement Agreement 

April 9, 2010 
 Alliance
Resource Partners, L.P. 
 1717 South Boulder Avenue, Suite 400 

Tulsa, Oklahoma 74119 
 Attn: Chief
Financial Officer 
 Gentlemen: 

We are pleased to inform you that FIFTH THIRD BANK, an Ohio banking corporation (the “Bank”), will make available to
ALLIANCE RESOURCE PARTNERS, L.P., a Delaware limited partnership (the “Borrower”), an uncommitted unsecured line of credit for the issuance of letters of credit in a maximum aggregate available undrawn amount outstanding at any time
of up to Twenty Six Million One Hundred Thousand and 00/100 Dollars ($26,100,000.00), which may at any time and from time to time be requested by Borrower and issued by Bank in its sole discretion. 

The terms and conditions of this uncommitted line of credit and the Borrower’s obligations (including reimbursement obligations) with respect
thereto and each Letter of Credit are set forth in this agreement (the “Agreement”) as follows: 
 1.
Letters of Credit 
 1.1 Facility. Subject in all respects to the terms and conditions
of this Agreement, Bank hereby establishes on the date hereof an uncommitted line of credit facility in favor of the Borrower of up to Twenty Six Million One Hundred Thousand and 00/100 Dollars ($26,100,000.00) (the “Maximum Credit
Amount”) for the issuance of letters of credit from time to time. 
 1.2 Letters of
Credit. (a) Borrower may from time to time, request Bank to issue letters of credit from Bank, but in no event shall the aggregate maximum amount available to be drawn under the outstanding letters of credit exceed $26,100,000 (the
“Letters of Credit” and individually a “Letter of Credit”) at any one time, unless otherwise agreed to by the Bank. The Letters of Credit shall be in favor of such beneficiaries and for such purposes as an authorized
representative of Borrower specifies, shall have such expiration dates as Bank and Borrower agree (provided, however, that Bank and Borrower may agree to have expiration dates that extend beyond the term of this Agreement and may further agree that
a Letter of Credit is renewed automatically for a stated period of time unless Bank, as the issuer of such Letter of Credit, provides at least 90 days advance notice to the beneficiary thereof that such Letter of Credit shall not be automatically
renewed), and shall otherwise be in such form and substance as Bank and Borrower agree. 
 (b) All drawings or
advances rightfully made to the holders of the Letters of Credit (a “Drawing”) will be reimbursed by the Borrower to the Bank on the same day of such Drawing, provided notice of such Drawing is given to Borrower no later than 12:00 p.m.
Cincinnati, Ohio time on a Banking Day and if notice is provided after such time, Borrower shall reimburse Bank no later than 11:00 a.m. Cincinnati, Ohio time on the next Banking Day. Any Drawing that is not reimbursed within the period described in
this Section 1(b) shall be considered an outstanding loan hereunder (“Loan”), subject to Section 2 of this Agreement. In this Agreement, “Banking Day” shall mean any day other than Saturday or Sunday or any other day on
which commercial banks in Cincinnati, Ohio are authorized to be closed under federal law. 
 (c) The Borrower
shall pay the Bank, in respect of each outstanding Letter of Credit issued pursuant to the provisions hereof, on a quarterly basis in arrears, a maintenance fee per annum based upon the average aggregate amount available to be drawn under each
Letter of Credit outstanding during such period and computed based upon the Schedule attached as Exhibit A (the “Pricing 

 
Grid”). The Borrower acknowledges and agrees that the Letters of Credit previously issued by Bank and outstanding as of the date hereof, which Letters of Credit are listed on Exhibit B
attached hereto, shall be deemed to be issued pursuant to this Agreement and governed by the provisions hereof. 

(d) The obligations of Borrower to Bank under this Agreement with respect to the Letters of Credit shall be absolute,
unconditional and irrevocable, and shall be paid and performed strictly in accordance with the terms of this Agreement, under all circumstances whatsoever. However, the foregoing shall not excuse Bank from liability to Borrower in any independent
action or proceeding brought by Borrower against Bank to the extent of any damages suffered by Borrower that are caused by Bank’s negligence or willful misconduct. 

(e) If any change in any law or regulation or in the interpretation thereof instituted after the date hereof by any court
or administrative agency shall either (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against letters of credit issued by Bank or (ii) impose on Bank any other condition regarding this Agreement or
the Letters of Credit (other than changes in the rates of income taxation generally applicable to any bank), and the result of any such event shall be to increase the costs of Bank for issuing or maintaining the Letters of Credit (which increases in
cost shall be determined by Bank’s reasonable allocation of the aggregate of such cost increases resulting from such event(s), other than increases which result solely from Bank’s acts or omissions, then (a) Bank shall so notify
Borrower in writing and (b) upon receipt of such written notice from Bank, Borrower shall pay to Bank, from time to time as specified by Bank, but in no event sooner than ten days from the date of receipt of such notice, additional amounts
which shall be sufficient to reasonably compensate Bank for such increased costs, together with interest on each such amount from the date such payment was due until payment in full thereof at the rate applicable thereto. Bank shall submit to
Borrower a certificate (i) setting forth in reasonable detail the amount of the increased cost incurred by Bank as a result of any such event and (ii) with a representation that such increased costs are being charged to Bank’s other
letter of credit customers. Such certificate shall be prima facie evidence, absent manifest error, as to the amount of such increased costs incurred. Bank’s computation of any amounts due from Borrower hereunder shall be determined on a
reasonable good faith basis. 
 (f) Any action taken or omitted by Bank, under or in connection with the Letters
of Credit or sight drafts or documents relating thereto, if taken or omitted without negligence or willful misconduct, shall be binding upon Borrower and shall not result in Bank having any liability to Borrower. Neither the Bank nor any of its
respective officers or directors will be liable or responsible for: (a) the use which may be made of the Letters of Credit or for any acts or omissions of the beneficiaries and any permitted transferee in connection therewith; (b) the
validity, sufficiency or genuineness of documents, or of any endorsement(s) thereon, even if such documents should in fact prove to be in any or all respects invalid, insufficient, fraudulent or forged; (c) any other circumstances whatsoever in
making or failing to make payment under the Letters of Credit, other than damages suffered by Borrower that Borrower proves were caused by (i) Bank’s willful misconduct or negligence in determining whether a sight draft or other documents
presented under the Letters of Credit comply with the terms of the Letters of Credit or (ii) Bank’s willful or negligent failure to pay under the Letters of Credit after the presentation to it by the holder thereof (or a permitted
successor to whom the Letters of Credit have been transferred in accordance with their terms) of a sight draft and documents strictly complying with the terms and conditions of the Letters of Credit. In furtherance and not in limitation of the
foregoing, Bank may accept documents that appear on their face to be in order, without responsibility for further investigation. 

(g) Borrower hereby agrees at all times to protect, defend, indemnify, save and hold harmless Bank from and against any
and all claims, actions, suits and other legal proceedings (“Third Party Claims”) which is made or initiated by a third party, and from and against any and all losses, claims, demands, liabilities, damages, charges, counsel fees, interest
and penalties and other expenses (“Damages”) which Bank may, at any time, sustain or incur by reason of or in consequence of or arising out of the Letters of Credit or the use (or the proposed or potential use) of the proceeds of any
drawing under the Letters of Credit; provided that Borrower shall not be required to indemnify, protect, defend or save or hold harmless Bank for, from or against any Third Party Claims or Damages to the extent, but only to the extent, caused by the
willful misconduct or negligence of Bank. 
  

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 (h) Notwithstanding any of the foregoing, Bank shall not, in any way, be
liable for any failure by Bank to pay any sight draft under a Letter of Credit as a result of any act of a governmental authority or any other cause beyond the reasonable control of Bank. 

(i) Borrower shall pay to Bank all reasonable and customary letter of credit application fees and other issuance,
amendment or negotiation and presentment expenses and related charges in connection with the issuance, amendment or presentation of Letters of Credit. 

1.3 Term of Uncommitted Facility. This Agreement shall remain in full force and effect unless and until
canceled by Bank or Borrower at any time, on not less than sixty (60) days’ prior written notice; provided, however, that any obligations of the Borrower and the Bank pursuant to this Agreement which shall be outstanding as of the
effective date of such termination shall not be affected thereby. With regard to any Letters of Credit which remain outstanding as of the date of termination of this Agreement, the Bank agrees that such Letters of Credit shall remain outstanding
until their stated expiration date(s). 
 2. Interest on any Loans. 

2.1 Accrual and Payment of Interest. 

(a) The principal sum outstanding under each Loan shall bear interest at a floating rate per annum equal to 3.00% in
excess of the one month “LIBOR Rate” (the “Interest Rate”). The LIBOR Rate is the rate of interest (rounded upwards, if necessary, to the next 1/8 of 1% and adjusted for reserves if Bank is required to maintain reserves with
respect to relevant advances) fixed by the British Bankers’ Association at 11:00 a.m., London time, relating to quotations for the one month London InterBank Offered Rates on U.S. Dollar deposits, as applicable, as published on Bloomberg
LP, or, if no longer provided by Bloomberg LP, such rate as shall be determined in good faith by the Bank from such sources as it shall determine to be comparable to Bloomberg LP (or any successor) as reasonably determined by Bank at approximately
10:00 a.m. Cincinnati, Ohio time on the relevant date of determination. The Interest Rate shall initially be determined as of the date of the initial advance of funds to Borrower under a Loan and shall be adjusted each 30 days thereafter. Interest
shall be calculated based on a 360-day year and charged for the actual number of days elapsed. 
 (b) In
addition, notwithstanding anything herein contained to the contrary, if, prior to or during any period with respect to the LIBOR Rate, any change in any law, regulation or official directive, or in the interpretation thereof, by any governmental
body charged with the administration thereof, shall make it unlawful for Bank to fund or maintain its funding in Eurodollars of any portion of the advance subject to the LIBOR Rate or otherwise to give effect to Bank’s obligations as
contemplated hereby: (i) Bank may, by written notice to Borrower, declare Bank’s obligations in respect of the LIBOR Rate to be terminated forthwith, and (ii) the LIBOR Rate with respect to Bank shall forthwith cease to be in effect,
and interest shall from and after such date be calculated at the Bank’s “Prime Rate”, and interest shall be paid on the first (1st) day of each calendar month. Borrower’s right to utilize LIBOR Rate Index Pricing as set
forth in this Agreement shall be terminated automatically if Bank, by prior written notice, shall notify Borrower that one month LIBOR Rates are not readily available in the London Inter-Bank Offered Rate Market, or that, by reason of circumstances
affecting such Market, adequate and reasonable methods do not exist for ascertaining the rate of interest applicable to such deposits. In such event, amounts outstanding hereunder shall bear interest at a rate equal to Bank’s Prime Rate or such
other rate of interest as may be agreed to between Bank and Borrower. 
 (c) Notwithstanding any provision to the
contrary in this Agreement, in no event shall the interest rate charged on the Loans exceed the maximum rate of interest permitted under applicable state and/or federal usury laws. Any payment of interest that would be deemed unlawful under
applicable laws for any reason shall be deemed received on account of, and will automatically be applied to reduce, the principal sum outstanding and any other sums (other than interest) due and payable to Bank, and the provisions hereof shall be
deemed amended to provide for the highest rate of interest permitted under applicable law. 
  

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 2.2 Manner and Place. Unless the Bank otherwise directs in
writing, all payments and prepayments under this Agreement shall be made without setoff, counterclaim or deduction, in lawful currency of the United States of America and in immediately available funds not later than 3:00 p.m. Ohio time, to the
Bank’s office at 38 Fountain Square Plaza, Cincinnati, Ohio 45263. 
 3. Conditions Precedent. 

a. The effectiveness of this Agreement is subject in all respects to satisfaction of the following conditions precedent in form and
substance and in a manner satisfactory to the Bank and its counsel: (i) Bank shall have received certified copies of all company action taken by Borrower, including resolutions adopted by its managing general partner, authorizing the execution,
delivery and performance of this Agreement and such other documents relating to the Letters of Credit and the transactions contemplated hereby (including any letter of credit application form) as Bank shall reasonably require (this Agreement and
such other documents are referred to herein collectively as the “Letter of Credit Documents”); (ii) Bank shall have received a certificate from an officer of Borrower (or its managing general partner) as to the incumbency and
signatures of the officers of Borrower (or its managing general partner) authorized to execute and deliver this Agreement and the other Letter of Credit Documents; (iii) Bank shall have received copies of the Borrower’s certificate of
limited partnership, limited partnership agreement or other governing instruments as currently in effect, certified to be correct and complete by one of Borrower’s (or its managing general partner’s) authorized officers; and (iv) Bank
shall have received copies of any other documents that it may reasonably request relating to the existence of the Borrower, the authority or the validity of this Agreement and any other matters relevant hereto, all in form and substance reasonably
satisfactory to the Bank. 
 b. The issuance of any Letter of Credit which Bank chooses to issue hereunder, shall be subject to
the satisfaction of the following additional conditions precedent on and as of the date such Letter of Credit is issued and after giving effect thereto: (i) all of Borrower’s representations and warranties contained herein are correct and
complete; and (ii) no Event of Default has occurred and is continuing. Whenever Borrower requests the issuance of a Letter of Credit hereunder, Borrower shall be deemed to have represented and warranted to Bank that the conditions precedent to
such borrowing set forth in this subsection (b) are satisfied. 
 4. Representations and Warranties. Borrower
hereby represents and warrants to Bank as follows: 
 4.1 Organization Qualification Power and
Authority. Borrower: (i) is duly organized, validly existing and in good standing as a limited partnership under the laws of the State of its formation; and (ii) is qualified to do business in all jurisdictions where failure to
qualify would have a material adverse effect on the business and operations of the Borrower. 
 4.2
Execution, Delivery and Performance of Letter of Credit Documents. Borrower has the full power and authority necessary to execute, deliver, and perform its obligations under all of the Letter of Credit Documents. Borrower has taken all
required partnership action to authorize the execution, delivery, and performance of all of the Letter of Credit Documents. This Agreement has been duly executed and delivered by Borrower and constitutes, and the other Letter of Credit Documents
when duly executed and delivered by Borrower, shall constitute, Borrower’s legal, valid, and binding obligations, enforceable against Borrower in accordance with their respective terms except as such enforceability may be limited by bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and general equitable principles. Borrower’s execution, delivery and performance of the Letter of Credit Documents does not and will not: (i) require any action or
consent of, or any registration or filing with, any governmental body or other person or entity that has not already been obtained (each, with respect to Borrower); (ii) violate or conflict with, or create a breach or default under
(a) Borrower’s certificate of limited partnership, limited partnership agreement or other governing instruments or (b) any agreement, 

 

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judgment, order, law or regulation to which Borrower is a party or by which it is bound which default would have a material adverse effect on the Borrower’s ability to perform its
obligations hereunder, or (iii) result in the creation or imposition of any charge or encumbrance of any nature whatsoever upon its assets or revenues, except for any created by the Letter of Credit Documents. 

All of the foregoing representations and warranties shall survive the execution and delivery of this Agreement. 

5. Covenants. 

5.1 Financial Statements. The Borrower shall furnish to Bank: (i) within 60 days after the end of each
of the first three quarters of each fiscal year, a copy of Borrower’s regularly and internally prepared unaudited consolidated financial statements for that quarter, certified as complete and correct, subject to changes resulting from year-end
adjustments, by the principal financial officer of Borrower (or its managing general partner); (ii) within 120 days after the end of each fiscal year, a copy of Borrower’s audited consolidated financial statements and accompanied by an
audit opinion of such accountants without qualification. All of such financial statements shall be prepared in conformance with generally accepted accounting principals consistently applied and shall present fairly the financial position and results
of operations for Borrower, as of the dates thereof and for the period then ended. 
 5.2 Corporate
Existence and Good Standing. Borrower shall maintain (i) its legal existence in its State of formation, (ii) its qualification, or registration and good standing in all jurisdictions in which failure to qualify would have a
materially adverse effect on the Borrower’s ability to perform its obligations hereunder and (iii) all material licenses, permits, franchises, and governmental authorizations necessary to conduct its business and own or lease its property.

 5.3 Compliance with Laws and Agreements. Borrower shall comply with the terms and provisions of
each material statute, law, regulation, ordinance, judgment, order, or decree applicable to it and each contract, mortgage, lien, lease, indenture, instrument, agreement or document to which it is a party or bound, except where the necessity of
compliance is contested in good faith by appropriate proceedings or noncompliance could not reasonably be expected to have a materially adverse effect on the Borrower’s ability to perform its obligations hereunder. 

5.4 Future Assurances. Borrower shall execute and deliver to Bank, upon request, such documents and
agreements as Bank may, from time to time, reasonably request to carry out the terms and conditions of this Agreement. 

5.5 Incorporation of Credit Agreement Financial Covenants. Borrower and Bank hereby incorporate by reference
and make a part hereof the Financial Covenants (currently Section 5.04) of the Second Amended and Restated Credit Agreement dated as of September 27, 2007 among Alliance Resource Operating Partners, L.P., as borrower, the Initial Lenders,
Initial Issuing Banks and Swing Line Banks named therein, JPMorgan Chase Bank, N.A., as paying agent, Citicorp USA, Inc. and JPMorgan Chase Bank, N.A., as co-administrative agents and Citigroup Global Markets Inc. and J.P. Morgan Securities, Inc.,
as joint lead arrangers and joint book runners (as amended or restated from time to time, the “Operating Partners Credit Agreement”). 

6. Events of Default and Remedies. 

6.1 Events of Default. The occurrence of any of the following events shall be a default (each an
“Event of Default”) hereunder: (a) the Borrower fails to reimburse the Bank for any Drawing within 5 days after the date due; (b) any representation or warranty made by the Borrower herein or in any written
statement or certificate furnished by the Borrower to Bank at any time pursuant to this Agreement shall prove to have been untrue in any material respect when made unless such breach is cured within 30 days after Bank notifies Borrower in writing of
such breach provided such breach is capable of being cured within such 30-day period; (c) the Borrower defaults in any material respect in the observance or performance of or breaches in any material respect any covenant or agreement herein and
such default or 
  

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breach continues unremedied for more than 30 days after written notice thereof has been provided by the Bank to the Borrower, (d) any other indebtedness for borrowed money of the Borrower to
Bank in an outstanding principal amount of $1,000,000 or more in the aggregate shall be accelerated; (e) the Borrower commences, has commenced against it, or acquiesces in the commencement of any action or proceeding in bankruptcy or seeking
reorganization, arrangement, readjustment of debts, or any other relief under the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, state, federal or foreign, now or hereafter existing, whether or not an
order for relief has been entered therein and, in the case of any such action or proceeding commenced against the Borrower, such action or proceeding is not dismissed or stayed within 60 days after the commencement thereof; (f) the Borrower
applies for or acquiesces in the appointment of, or has appointed against it, a receiver, custodian, trustee, sequestrator or similar officer for it or all or any part of its property; (g) the Borrower makes a general assignment for the benefit
of creditors; (h) the Borrower files a certificate of dissolution under applicable state law, is liquidated, or takes any action or has any action taken against it in furtherance of dissolution or liquidation; and (i) one or more
judgments, decrees, or orders for the payment of money in excess of $25,000,000 in the aggregate shall be rendered against the Borrower and the same remains unsatisfied, unvacated or unstayed for a period of 60 days after the entry thereof (and such
liability shall not be adequately covered by insurance). 
 6.2 Remedies. Upon the occurrence and
during the continuance of an Event of Default (other than the Events of Default described in clauses (e), (f), (g) or (h) of Section 6.1 above), the Bank may, upon three (3) Banking Days’ prior written notice to or demand on
the Borrower, (i) declare the amount then outstanding hereunder together with accrued but unpaid interest thereon and all other obligations due hereunder and under any of the Letter of Credit Documents, to be immediately due and payable, in
which event such principal, interest and other obligations shall become immediately due and payable to the Bank without presentment, demand, protest or other notice of any kind, all of which are expressly waived, anything in this Agreement to the
contrary notwithstanding and (ii) cease issuing Letters of Credit hereunder. Upon the occurrence of an event described in clause (e), (f), (g) or (h) of Section 6.1 above, the amount then outstanding hereunder together with
accrued but unpaid interest thereon and all other obligations shall, without notice to or demand on the Borrower, automatically become immediately due and payable. 

7. Limitations on Bank Liability. 

Except as provided for in Section 1.2(f) of this Agreement, the Bank shall not be responsible to the Borrower for,
and the Bank’s rights and remedies against the Borrower shall not be impaired by: 
 (1) action or inaction
of the Bank required or permitted under any law, order, or practice that is required or permitted to be applied to a Letter of Credit or this Agreement (including the law or any order of a jurisdiction where the Bank, any advising, transferring,
confirming, or nominated bank or person, or the beneficiary is located and the practice stated in the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce (“ICC”) Publication No. 600
(“UCP 600”), to the extent the UCP 600 is made applicable to a specific Letter of Credit, International Standby Practices, ICC Publication No. 590 (“ISP98”), to the extent the ISP98 is made
applicable to a specific Letter of Credit, and the decisions, opinions, practice statements, and official commentary of the ICC Banking Commission, the International Financial Services Association, and the Institute of International Banking
Law & Practice, as applicable). 
 (2) action or inaction of the Bank required or permitted under Ohio
law, and, for any Letter of Credit, under ISP98, even if the Letter of Credit chooses other law or if such Letter of Credit chooses other practice, 

(3) honor without regard to any non-documentary condition(s) in a Letter of Credit, 

 

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 (4) honor or other recognition of a presentation or other demand that
includes forged or fraudulent documents or that is otherwise affected by the fraudulent, bad faith, or illegal conduct of the beneficiary or other person (excluding employees of the Bank and any processing agent engaged by the Bank), whether or not
the Borrower is innocent and obtains no benefit, 
 (5) dishonor of any presentation that does not strictly
comply or that is fraudulent, forged, or otherwise not entitled to honor, 
 (6) dishonor which is authorized by
the Borrower or for which the Borrower is unwilling or unable to reimburse the Bank, 
 (7) payment to a
nominated person that does not give value or that misrepresents the basis on which it claims reimbursement or otherwise wrongfully claims, receives, or retains a payment made by the Bank under a Letter of Credit, whether or not the Bank receives
complying documents, claims a refund, or undertakes to recover the payment made by the Bank, 
 (8)
non-notification to the Borrower of the Bank’s receipt of a presentation or claim for reimbursement under a Letter of Credit or of the Bank’s disposition thereof and, if the Bank in its sole discretion approaches the Borrower for a waiver
of discrepancies, dishonor regardless of the Borrower’s waiver of discrepancies or request for honor, or 

(9) retention of Letter of Credit proceeds based on a valid exercise of the Bank’s set off rights or on an apparently
applicable attachment order, blocking regulation, or third-party claim notified to the Bank, 
 8. Bank
Discretion. 
 a. The Bank may for the Borrower’s account at any time provide in the Letter of Credit or otherwise
agree to do or do the following: 
 (1) send a Letter of Credit via the Society for Worldwide Interbank Financial
Telecommunication (“SWIFT”) network and bind the Borrower directly and as indemnifier to the rules applicable to SWIFT messages (including rules obligating the Borrower or the Bank to pay bank charges), 

(2) assert or waive or, with any necessary consent from the beneficiary or other person, amend any provision in a Letter
of Credit or applicable practice that primarily concerns issuer operations (including (i) identification of a Letter of Credit in any presentation, (ii) marking of a Letter of Credit to reflect a transfer, payment, or other action,
(iii) specification of the banking days and hours, manner, and place for the Bank’s receiving a presentation, effecting honor, and giving notice of dishonor under a Letter of Credit, (iv) duration of the period(s) for examination,
approaching the Borrower for a waiver, or sending a notice of refusal, (v) disposition of the beneficiary’s documents after dishonor or while approaching the Borrower for a waiver, and (vi) replacement of a lost Letter of Credit or
recognition of a successor beneficiary), 
 (3) discount an accepted draft or defer a payment undertaking
incurred under a Letter of Credit, at the request of the beneficiary or other third party, without affecting the amount or due date of the Borrower’s obligations to reimburse or pay fees to the Bank, or to reimburse the Bank for the discounted
draft amount or deferred payment, 
 (4) select any branch or office of the Bank or any affiliate of the Bank or
of any other bank or financial institution or affiliate thereof to act as advising, transferring, confirming, and/or nominated bank or person under the law and practice of the place where it acts (if a Letter of Credit permits advice, transfer,
confirmation, and/or nomination) or to act under contract with the Bank as letter of credit processing agent for the Bank in the Bank’s issuance of a Letter of Credit or processing of demands or in any other action that the Bank is required or
permitted to take under any Letter of Credit, 
  

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 (5) honor any presentation that substantially complies with the terms and
conditions of a Letter of Credit, whether or not such Letter of Credit requires strict or literal compliance (including honor of a draft that is non-negotiable or informal, honor up to the amount available under such Letter of Credit of a demand
claiming more than that amount, honor of documents that include inconsistent extraneous data, and allowance of a grace period of 1 Banking Day for timing requirements under such Letter of Credit), and 

(6) provide for or submit to arbitration, mediation, DOCDEX (the ICC Banking Commission’s informal dispute resolution
service), or the like for the resolution of some or all disputes with the beneficiary or other person. 
 b. Unless specifically
committed to do so in a writing signed by the Bank, the Bank need not consent to any Letter of Credit amendment. If a Letter of Credit may be extended or terminated by a notice given or other action taken by the Bank (with or without the passage of
time), then, whether or not requested to do so by the Borrower, the Bank shall have the right to give such notice or take such action, or to fail or refuse to do so. If the Bank gives such notice or takes such action at the Borrower’s request,
then the Borrower shall obtain the beneficiary’s acknowledgement thereof and, in the case of Letter of Credit termination, request that the beneficiary return the original Letter of Credit. If the Bank fails or refuses to give a notice of
non-extension or termination at the Borrower’s timely written request, then the Bank’s Letter of Credit fees shall be calculated as if the Bank had given such notice or taken such action. 

c. If the beneficiary or another person claims that the Bank has wrongfully repudiated or dishonored, then the Bank shall have the right
to defend or settle the claim, with or without joining Borrower in any proceeding or negotiation and without regard to whether the claimant asserts that the Bank is precluded from relying on a valid defense, and Borrower shall have the obligation to
take all reasonable actions to mitigate damages and, if the Bank pays or settles (with the prior written consent of the Borrower, which consent shall not be unreasonably withheld, delayed or conditioned, in the case of any settlement of a claim), to
(a) reimburse and indemnify the Bank, subject to the exclusions of indemnification specified in Section 14 of this Agreement except for those instances where (i) otherwise agreed to by the parties hereto or (ii) such settlement
or payment provides that Borrower need not reimburse or indemnify Borrower to some extent, and (b) account for any benefits, and cooperate with the Bank as subrogee. 

d. If goods arrive before the Bank receives and either honors or dishonors the relevant presentation under a commercial Letter of Credit,
then, upon the Borrower’s request or the Bank’s good faith decision to protect its interest, the Bank may in its sole discretion issue for the Borrower’s account a separate guaranty, indemnity, or other undertaking to the carrier to
induce delivery of the goods. If the Bank so issues its undertaking, then the Borrower shall be absolutely precluded from raising any defense or claim with respect to the Bank’s subsequent honor of the related documents (except by way of
injunction action based on forgery or fraud in which the Bank is fully protected by injunction bond with respect to its undertaking to the carrier as well as its Letter of Credit). The Bank’s undertaking to the carrier, or any similar
undertaking, shall be treated as arising out of this Agreement (and therefore covered by the provisions on Indemnity in this Agreement). 

e. The Bank’s agreement to use, or its use of, its discretion in one or more instances shall not waive its right, with or without
notice to the Borrower, to use its discretion differently in other similar instances and shall not establish a course of conduct on which the Borrower may rely in any other instances under the same or other Letter of Credit. 

9. Borrower’s Responsibility for Letter of Credit Text and Practice. 

a. The Borrower is responsible for preparing or approving the text of a Letter of Credit as submitted to and as issued by the Bank and as
received by the beneficiary. The Bank’s recommendation or drafting of text, or the Bank’s use or, provided any change or Letter of Credit form has been approved by the Borrower, the Bank’s non-use or refusal to use text submitted by
the Borrower shall not affect the Borrower’s ultimate responsibility for the final text. The Borrower is responsible for the Bank’s failure to apply, or to observe standard practice as applied to, any Letter of Credit terms or conditions
that (i) are erroneous, ambiguous, inconsistent, insufficient, ineffective, or illegal, (ii) require the Bank to respond to a demand in fewer than 3 Banking Days, or (iii) require the Borrower to sign, issue, or present a document.

  

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 b. The Borrower is responsible for knowing applicable letter of credit law and practice. UCP
600 and ISP98 may be viewed on the United Nations website: http://www.uncitral.org/uncitral/en/other organizations texts.html. They and other published letter of credit law and practice materials are available from the Bank and from other
sources: http://www.ifsaonline.org/Publications/Docs/Reasonable Time Statement of Practice .pdf, www.iccbooksusa.com, and www.liblp.org 

10. Limitations on Remedies. 

a. Except as may be expressly provided in this Agreement, the Bank shall not be liable to the Borrower in contract, tort, or otherwise
for any special, indirect, consequential, or punitive damages. 
 b. The Borrower must take all reasonable actions to mitigate
and reduce the amount of damages to be claimed against the Bank. 
 c. If the Bank honors a presentation under or in connection
with a Letter of Credit for which the Borrower claims it is not obligated to reimburse or indemnify the Bank, the Borrower shall nonetheless pay to the Bank the amount the Bank paid, without prejudice to the Borrower’s claims against the Bank
to recover any Bank fees and costs paid by the Borrower with respect to the honored presentation plus any direct damages that the Borrower is unable to avoid or reduce. Damages attributable to honor of a presentation that appears on its face to be
non-complying are indirect damages, for which the Bank is not responsible, unless the discrepancies in the presentation reflect corresponding defects in the beneficiary’s performance in the underlying transaction or if the Bank’s honoring
of such non-complying presentation results from the Bank’s negligence or willful misconduct. Damages attributable to a change in the market value of any goods, services, document of title, instrument, foreign currency, or other property for
which payment is supported by a Letter of Credit, except changes resulting from the beneficiary’s changed credit standing or occurring while the Bank wrongfully retains the documents, are indirect damages, and damages attributable to honor of a
forged or fraudulent presentation are indirect damages for which the Borrower is responsible to the Bank, whether or not the presentation appears on its face to be complying. 

d. The Borrower’s aggregate remedies against the Bank for honoring a presentation or retaining honored documents in breach of the
Bank’s obligations to the Borrower (whether arising under this Agreement, applicable letter of credit practice or law, or any other agreement or law) are limited to the aggregate amounts paid by the Borrower to the Bank with respect to the
honored presentation and, subject to Borrower’s obligations pursuant to Section 10.b above, the amount wrongfully paid to the beneficiary under a Letter of Credit. 

e. In any dispute or litigation between the Borrower and the Bank, the Borrower must pay the Bank’s reasonable attorney’s fees,
expert witness fees, and other expenses of litigation or dispute resolution, except to the extent the Borrower prevails in obtaining an award of damages disputed by the Bank. The Borrowers’ prevailing in an action based on forgery or fraud of
the beneficiary or other presenter does not relieve the Borrower from its obligation to pay the Bank’s fees and expenses in contesting the entry or maintenance of injunctive relief. 

11. Borrower Status. 

The undersigned Borrower represents, warrants and covenants on a continuing basis, except as otherwise provided in this Agreement, that

 (1) it acts for itself and for no other person in requesting issuance of any Letter of Credit for its account, 

 

 9 

 (2) it may be identified in a Letter of Credit as the “Borrower”, “account
party”, or “customer” at whose request and on whose instruction and for whose account the Letter of Credit is issued, it being understood that a Letter of Credit issued hereunder may be issued for the account of the Borrower but in
respect of an obligation of Borrower or any subsidiary thereof, 
 (3) it alone (acting through any of the individuals
identified in this Agreement as its authorized agents) may authorize the Bank to issue, amend, pay, or otherwise act under any Letter of Credit, and 

(4) it alone has standing to enforce this Agreement or otherwise to assert the rights and remedies of a Borrower, including to sue for an
injunction against honor of any Letter of Credit. 
 12. Additional Borrowers. 

a. If this Agreement is signed by another person as an additional Borrower or if an application requesting issuance of a particular
Letter of Credit is signed by another person, or if a particular Letter of Credit names another person as a Borrower with that other person’s consent, then that other person shall thereby become jointly and severally obligated as a Borrower
under this Agreement to the same extent as the (first) undersigned Borrower, as applied to every or the particular Letter of Credit, as the case may be; provided, however, that any Letter of Credit that names therein, or is issued to secure an
obligation of, a subsidiary of the Borrower shall not result in such subsidiary becoming jointly and severally obligated as a Borrower under this Agreement unless such subsidiary has specifically agreed in writing (other than in such Letter of
Credit) to become so jointly and severally obligated as a Borrower under this Agreement. The additional Borrower thereby assumes the payment obligations and other responsibilities of the Borrower, makes the warranties of the Borrower (which may
require that the Borrower and/or additional Borrower obtain waivers with respect to some of the warranties in the preceding paragraph), accepts the consequences of an Event of Default as applied to itself, accepts the binding effect on it of action
or omission by, or notice to, another Borrower, and waives all defenses based on suretyship. EACH ADDITIONAL BORROWER ACCEPTS FOR ITSELF the limitations on remedies, governing law, forum, jurisdiction, and JURY WAIVER in this Agreement.

 b. The (first) undersigned Borrower (i) assures the Bank that any other person that signs as an additional Borrower or
that is named in a Letter of Credit as Borrower shall be obligated to the Bank as provided above, (ii) accepts the effect on it of action or omission by, or notice to, another Borrower, and (iii) waives all defenses based on suretyship.
The (first) undersigned Borrower waives any objections it may have if the Bank, in the Bank’s discretion, recognizes an additional Borrower as having the right, alone or with the (first) undersigned Borrower, to act as the Borrower with respect
to the affected Letter of Credit. 
 13. Successors and Assigns; Expanded Meaning of “Bank”. 

a. This Agreement shall be binding upon and inure to the benefit of the Borrower and the Bank and their respective permitted successors
and assigns. The Borrower shall not assign its obligations under this Agreement, and no such assignment shall be effective to release the Borrower of liability or to obligate the Bank to recognize the purported assignee, except to the extent the
Bank may expressly consent in a signed writing. 
 b. For purposes of this Agreement, the “Bank” includes Fifth Third
Bank, an Ohio banking corporation, with International Trade Services and SWIFT membership, in Cincinnati, Ohio, together with its parent Fifth Third Bancorp, whose principal office is located in Cincinnati, Ohio, and any subsidiary or controlled
affiliate of Fifth Third Bancorp located in the United States including any branch or office thereof located in the United States that is controlled by Fifth Third Bancorp that either (i) maintains a customer relationship with, and receives
this Agreement from, the undersigned Borrower or (ii) acts as issuer and is named as such in any Letter of Credit. Each such Bank may delegate and assign part or all of its obligations and rights to the other(s), in addition to such Bank’s
rights to request others to act as a 
  

 10 

 
nominated person or as a letter of credit processing agent. The Borrower acknowledges that Fifth Third Bank, 38 Fountain Square Plaza, Cincinnati, Ohio may appropriately act as issuer or as
letter of credit processing agent (with or without disclosure in the Letter of Credit) for an affiliated Bank issuer of any Letter of Credit. 

c. With the prior written consent of the Borrower (which consent shall not be unreasonably withheld, delayed or conditioned), the Bank
may grant participations in or assign its rights and obligations under this Agreement, in whole or in part, to one or more domestic banks or financial institutions which shall, to the extent the Bank so notifies the Borrower, be substituted for the
Bank with respect to the assigned rights. The Bank may disclose credit and other information regarding the Borrower (and any non-Borrower guarantor) and this Agreement to any permitted (actual or prospective) assignee or participant; provided such
assignee or participant agrees to keep confidentially any non-public information of the Borrower or its subsidiaries. 
 14.
Indemnity. Borrower shall, to the fullest extent permitted by law, indemnify, defend, pay and hold Bank harmless from and against any and all Third Party Claims and Damages which Bank may incur or be subject to as a consequence, direct
or indirect, of any breach by Borrower of any warranty, covenant, term or condition in, or the occurrence of any default by Borrower under this Agreement or any other Letter of Credit Document, except to the extent that any of the foregoing shall
have resulted from the negligence or willful misconduct of the Bank. 
 15. Notices. Except as expressly provided
herein any notice or other communication given hereunder shall be in writing and shall be delivered against receipt, or mailed by registered or certified mail return receipt requested, postage prepaid, or transmitted by facsimile with confirmation
of successful transmittal thereof and addressed to the party to be notified as follows, or to such other address as such party may designate by like notice: 
  

			
	 If to Bank, to:
	  	FIFTH THIRD BANK
		  	38 Fountain Square Plaza
		  	Cincinnati, Ohio 45263
		  	Fax: 513-534-5947
		  	Attn: Large Corporate Accounts MD 109055
		
	 If to Borrower, to
	  	Alliance Resource Partners, L.P.
		  	1717 South Boulder Avenue, Suite 400
		  	Tulsa, Oklahoma 74119
		  	Fax: 918-295-7357
		  	Attn: Chief Financial Officer

 16.
Complete Agreement; Modification and Waivers. The Letter of Credit Documents are and shall be the complete agreement between the parties regarding the transactions described herein and shall supersede any and all oral or other written
agreement relating to such transactions (including, for the avoidance of doubt, any agreement entitled “Agreement Setting Forth Terms and Conditions for Irrevocable Standby Letter of Credit and Security Agreement” at any time executed and
delivered by Borrower or any officer on behalf of Borrower to the Bank prior to the date hereof). In entering into this Agreement and the transactions embodied in the Letter of Credit Documents, the Borrower has not relied on any agreement,
representation, warranty or statement by Bank that are not expressly set forth in this Agreement. The Letter of Credit Documents may not be modified, waived, supplemented or amended, except by a writing signed by the Borrower and the Bank.

 17. Severability. If any clause or provision of the Letter of Credit Documents, or any part thereof shall be
held invalid or unenforceable, in whole or in part, in any jurisdiction, such invalidity or unenforceability shall attach only to such clause or provision, or such part thereof and shall not in any manner affect any other clause or provision in any
jurisdiction 
  

 11 

 18. Cost and Expenses. Borrower will pay or reimburse Bank on demand for any
and all reasonable out-of-pocket charges, costs, taxes and expenses incurred by Bank or for its account in implementing and enforcing the Letter of Credit Documents, including, without limitation, reasonable fees and disbursements of Bank’s
outside legal counsel, except as otherwise provided herein, including Section 1.2(g) and 10.e hereof). 
 19.
UNCOMMITTED FACILITY. THIS IS AN UNCOMMITTED FACILITY AND NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN OR ANY COURSE OF DEALING BETWEEN BANK AND BORROWER, THE DECISION AS TO WHETHER OR NOT TO ISSUE ANY LETTERS SHALL BE IN
BANK’S SOLE AND ABSOLUTE DISCRETION. 
 20. GOVERNING LAW; BINDING EFFECT. THE LETTER OF CREDIT
DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF OHIO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. THE TERMS AND PROVISIONS OF THE LETTER OF CREDIT DOCUMENTS SHALL INURE TO THE BENEFIT OF
AND BE BINDING ON BORROWER AND BANK AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS; PROVIDED, HOWEVER THAT BORROWER MAY NOT ASSIGN ANY OF ITS INTEREST OR OBLIGATIONS THEREUNDER WITHOUT THE PRIOR WRITTEN CONSENT OF BANK. 

21. CONSENT TO JURISDICTION. BORROWER AGREES THAT THE STATE AND FEDERAL COURTS IN THE COUNTY WHERE BANK IS LOCATED SHALL
HAVE EXCLUSIVE JURISDICTION OVER ALL MATTERS ARISING OUT OF THIS AGREEMENT. BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING IN SUCH COURTS, AGREES THAT VENUE WILL BE PROPER IN SUCH COURTS FOR ALL
SUCH MATTERS AND WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT OR OTHER PROCESS OR PAPERS ISSUED THEREIN. BORROWER AGREES THAT SERVICE OF SUCH SUMMONS OR COMPLAINT OR OTHER PROCESS OR PAPER MAY BE MADE BY REGISTERED OR CERTIFIED MAIL (RETURN
RECEIPT REQUESTED) ADDRESSED TO THE BORROWER AT THE ADDRESS SET FORTH IN SECTION 15. 
 22. WAIVER OF JURY
TRIAL. BORROWER AND BANK WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN ANY COURT ARISING ON, OUT OF, UNDER, BY VIRTUE OF, OR IN ANY WAY RELATING TO THE LETTER OF CREDIT DOCUMENTS, OR THE TRANSACTIONS OCCURING IN
CONNECTION HEREWITH. BORROWER AND BANK CONFIRM THAT THE FOREGOING WAIVER IS INFORMED AND VOLUNTARY. 
 23. Execution
in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 

 

 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their respective officers thereunto authorized as of the date first written above. 
  

			
	FIFTH THIRD BANK
		
	By:	 	/s/ Ashley Colmenero
	Print Name: Ashley Colmenero
	Its: Assistant Vice President
	
	ALLIANCE RESOURCE PARTNERS, L.P.
		
	By:	 	ALLIANCE RESOURCE MANAGEMENT GP, LLC,
	its Managing General Partner
	
		
	By:	 	/s/ Cary Marshall
	Print Name: Cary Marshall
	Its: Vice President-Corporate Finance and Treasurer

  

 13 

 EXHIBIT A 

Pricing Grid 
  

			
	 Consolidated Debt to Consolidated Cash Flow

Ratio*
	  	 Standby LC Fee Per Annum (in basis
points)

	 1.5:1.0 or greater
	  	190
	 1.0:1.0 or greater but less than 1.50:1.0
	  	145
	 0.50:1.0 or greater but less than 1.0:1.0
	  	125
	 Less than 0.50:1.0
	  	100

  

	*	Calculated pursuant to the terms of the Operating Partners Credit Agreement 

  

 14 

 EXHIBIT B 

Outstanding Letters of Credit 
  

	1.	Letter of Credit issued for the benefit of the Illinois Industrial Commission in the face amount of $3,425,000 and assigned Letter of Credit No. S200471.

  

	2.	Letter of Credit issued for the benefit of Travelers Casualty and Surety Company in the face amount of $5,000,000 and assigned Letter of Credit No. S402238.

  

	3.	Letter of Credit issued for the benefit of the Kentucky Department of Workers Claims in the face amount of $17,671,696 and assigned Letter of Credit No. S403286.

  

 15Amended and Restated Administrative Services Agreement

 Exhibit 10.1 

Execution Version 

AMENDED AND RESTATED 

ADMINISTRATIVE SERVICES AGREEMENT 

by and among 

ALLIANCE RESOURCE PARTNERS, L.P. 

ALLIANCE RESOURCE MANAGEMENT GP, LLC 

ALLIANCE RESOURCE OPERATING PARTNERS, L.P. 

ALLIANCE HOLDINGS GP, L.P. 

ALLIANCE GP, LLC 

and 

ALLIANCE RESOURCE HOLDINGS II, INC. 

(Effective January 1, 2010) 

 Execution Version 

 

 TABLE OF CONTENTS 

 

					
	ARTICLE 1: DEFINITIONS
	1.1	  	 Definitions
	  	1
	1.2	  	 Construction
	  	1
	
	ARTICLE 2: SERVICES
			
	2.1	  	 Services
	  	2
	2.2	  	 Provision of Insurance
	  	2
	2.3	  	 Payment for Services
	  	2
	2.4	  	 Invoices
	  	3
	2.5	  	 Annual Reallocation
	  	3
	2.6	  	 Disputes
	  	3
	2.7	  	 Representations Regarding Use of Services
	  	4
	2.8	  	 Warranties; Limitation of Liability
	  	4
	2.9	  	 Force Majeure
	  	4
	2.10	  	 Affiliates
	  	4
	
	ARTICLE 3: OTHER AGREEMENTS
			
	3.1	  	 Adoption of Policies and Procedures
	  	4
	
	ARTICLE 4: MISCELLANEOUS
			
	4.1	  	 Choice of Law; Submission to Jurisdiction
	  	5
	4.2	  	 Termination
	  	5
	4.3	  	 Notices
	  	5
	4.4	  	 Entire Agreement; Supersedure
	  	5
	4.5	  	 Effect of Waiver of Consent
	  	5
	4.6	  	 Amendment or Modification
	  	5
	4.7	  	 Assignment
	  	5
	4.8	  	 Counterparts
	  	6
	4.9	  	 Severability
	  	6
	4.10	  	 Further Assurances
	  	6
	4.11	  	 Withholding or Granting of Consent
	  	6
	4.12	  	 U.S. Currency
	  	6
	4.13	  	 Laws and Regulations
	  	6
	4.14	  	 Negation of Rights of Third Parties
	  	6

 Exhibit A    Defined
Terms 
 Exhibit B    Conflicts Policies and Procedures 

Annex A    Personnel Allocation 
  

 i 

 Execution Version 

 

 AMENDED AND RESTATED 

ADMINISTRATIVE SERVICES AGREEMENT 

THIS AMENDED AND RESTATED ADMINISTRATIVE SERVICES AGREEMENT (this “Agreement”) is made effective the
1st day of January 2010 (the “Effective
Date”) by and among Alliance Resource Partners, L.P., a Delaware limited partnership (“ARLP”), Alliance Resource Management GP, LLC, a Delaware limited liability company and the managing general partner of ARLP
(“MGP”), Alliance Resource Operating Partners, L.P., a Delaware limited partnership (“OLP”), Alliance Holdings GP, L.P., a Delaware limited partnership (“AHGP”), Alliance GP, LLC, a Delaware limited
liability company and the general partner of AHGP (“AGP”), and Alliance Resource Holdings II, Inc. (“ARH II”). 

R E C I T A L S 

The Parties hereto desire, by their execution of this Agreement, to evidence the terms and conditions upon which ARLP will provide
certain services to the AHGP Entities and the ARH II Entities. This Agreement supersedes in all respects the Administrative Services Agreement entered into by the Parties effective May 15, 2006. 

A G R E E M E N T S 

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

ARTICLE 1: DEFINITIONS 

1.1 Definitions. The definitions listed on Exhibit A shall be for all purposes, unless otherwise clearly indicated to the
contrary, applied to the terms used in this Agreement. 
 1.2 Construction. Unless the context requires otherwise:
(a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections
refer to Articles and Sections of this Agreement; (c) the terms “include”, “includes”, “including” or words of like import shall be deemed to be followed by the words “without limitation”; and
(d) the terms “hereof”, “herein” or “hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement. The table of contents and headings contained in this Agreement are for
reference purposes only, and shall not affect in any way the meaning or interpretation of this Agreement. 
  

 1 

 Execution Version 

 

 ARTICLE 2: SERVICES 

2.1 Services. Beginning on the Effective Date, subject to the terms of this Article 2 and in exchange for the payment described in
Section 2.3, ARLP hereby agrees to provide each of the AHGP Entities and the ARH II Entities with such general administrative and management services, including but not limited to human resources, information technology, financial and
accounting services, legal services and other services (the “Services”) as may be necessary to manage the business of the AHGP Entities and the ARH II Entities, as applicable, in accordance with the Services Standard; it being
understood and agreed by the Parties that in connection with the provision of such Services, ARLP shall employ or otherwise retain such personnel as may be necessary to provide the Services. The names of such personnel are set forth on Annex
A hereto and will be updated on or about December 1 of each year in accordance with the procedures set forth in Section 2.5. 

2.2 Provision of Insurance. ARLP hereby agrees to cause each of the ARLP Entities, the AHGP Entities and the ARH II Entities to be
named as additional insureds in ARLP’s insurance program, as in effect from time to time. Each of the ARLP Entities, the AHGP Entities and the ARH II Entities, as applicable, shall be allocated, and pay for, such insurance coverage in an amount
equal to ARLP’s cost of insuring the assets and operations of such partnership entities. 
 2.3 Payment for
Services. (a) As remuneration for the provision to each of the AHGP Entities and the ARH II Entities of the Services, ARLP shall be entitled to receive, and the AHGP Entities and the ARH II Entities, as applicable, agree to pay to ARLP, an
amount equal to the percentage of each employee’s compensation allocable to each of the AHGP Entities and the ARH II Entities as the same are set forth on Annex A hereto. In addition, each of the AHGP Entities and the ARH II Entities
shall pay all sales, use, excise, value added or similar taxes, if any, that may be applicable from time to time in respect of the Services provided to such entities by ARLP. The aggregate amount payable by the AHGP Entities or the ARH II Entities
to ARLP pursuant to this Section 2.3(a) with respect to a given period of time shall be referred to herein as the “Administrative Services Fee.” It is the intention of the Parties that the Administrative Services Fee represents
fair and reasonable compensation to ARLP for the AHGP Entities’ or the ARH II Entities’, as applicable, allocable share of the base salaries, employer costs for employee benefits, bonuses paid and provided to such personnel by ARLP, or any
of its Affiliates. The amount of the Administrative Services Fee shall not be adjusted except in accordance with Section 2.5, notwithstanding any change in personnel or the Services provided to any of the AHGP Entities or the ARH II Entities,
respectively. 
 (b) In addition, the AHGP Entities and ARH II Entities shall pay ARLP an aggregate annual amount of $75,000
($18,750 per quarter) for certain shared fixed costs including, but not limited to, office lease, telephone and office equipment leases (the “Fixed Charges Fee”). It is the intention of the Parties that the Fixed Charges Fee
represents fair and reasonable remuneration to ARLP for the AHGP Entities’ and the ARH II Entities’ use of the facilities and equipment of ARLP and its Affiliates. The AHGP Entities and the ARH II Entities shall each pay to ARLP their
respective pro rata portion of the Fixed Charges Fee based on the relative allocation of employee compensation as set forth on Annex A hereto to the AHGP 

 

 2 

 Execution Version 

 

 
Entities, on one hand and the ARH II Entities on the other hand. The amount of the Fixed Charges Fee shall not be adjusted except in accordance with Section 2.5. 

2.4 Invoices. ARLP shall invoice the applicable Billing Agent on or before ten days following the end of each fiscal quarter for
the Administrative Services Fee and the Fixed Charges Fee for such quarter. All invoices shall be due and payable on the 45th day following the end of each fiscal quarter. 

2.5 Annual Reallocation. On or about December 1 of each year, ARLP or its Affiliate shall submit for approval a revised
Annex A (the “Proposed Annex A”) and a new estimate of the Fixed Charges Fee (the “Proposed Fixed Charges Fee”) to the board of directors of each of MGP, AGP and ARH II. The Proposed Annex A will reflect any
changes in personnel of ARLP or its Affiliates who are performing the Services, changes in each such employee’s compensation and ARLP’s good faith estimate of the time each such employee will spend performing Services on behalf of each of
the AHGP Entities and the ARH II Entities, respectively, taking into account prior performance and future expectations; provided, however, with respect to Services performed on behalf of the ARH II Entities, no time shall be allocated for an
employee performing such Services unless having such employee available to perform such Services results in an incremental cost to ARLP. The Proposed Fixed Charges Fee shall reflect ARLP’s good faith estimate of the amount of fixed costs
allocable to the AHGP Entities and the ARH II Entities. Once approved by the board of directors of each of MGP, AGP and ARH II, or pursuant to the provisions of Section 2.6, the Proposed Annex A and the Proposed Fixed Charges Fee shall become
part of this Agreement and replace the existing Annex A and the Fixed Charges Fee until such time as a new Proposed Annex A and the Proposed Fixed Charges Fee is approved in accordance with the provisions of this Section 2.5 or
Section 2.6. 
 In addition, ARLP or its Affiliate shall prepare a schedule detailing the variance between the estimated
allocation of time spent by its personnel on behalf of each of the AHGP Entities and the ARH II Entities in the past fiscal year (the “Adjusted Administrative Services Fee”) and submit such schedule for approval to the board of
directors of each of MGP, AGP and ARH II. Upon approval by the board of directors of each of MGP, AGP and ARH II, or pursuant to the provisions of Section 2.6, the difference between the Administrative Services Fee paid and the Adjusted
Administrative Services Fee shall be paid by or reimbursed to each Entity within 60 days of the fiscal year end. 
 2.6
Disputes. Should there be a dispute over the nature or quality of the Services, the calculation and allocation of the Administrative Services Fee in connection with a Proposed Annex A the allocation of fixed charge in connection with the Fixed
Charges Fee or the Adjusted Administrative Services Fee, ARLP and the applicable Entities shall first attempt to resolve such dispute, acting diligently and in good faith, using the past practices of such Parties and documentary evidence of costs as
guidelines for such resolution. If ARLP and the applicable Entities are unable to resolve any such dispute within thirty days, or such additional time as may be reasonable under the circumstances, the dispute shall be referred to the applicable
Conflicts Committees (or in the case of ARH II, to its board of directors) for resolution. The Parties agree that the applicable Conflicts Committees and the board of directors of ARH II shall have the authority to settle any such dispute, in their
sole discretion, recognizing that it is the intent of all Parties that all shared expenses, services and the fixed costs, as applicable, be allocated among 
  

 3 

 Execution Version 

 

 
the ARLP Entities, the AHGP Entities or the ARH II Entities, as applicable, on a fair and reasonable basis. If, following good faith negotiation, the applicable Conflicts Committee and/or the
board of directors of ARH II cannot resolve any dispute, ARLP shall have the right, but not the obligation, to withhold the provision of any Services until such time as the Entities resolve the dispute. 

2.7 Representations Regarding Use of Services. Each of the AHGP Entities and the ARH II Entities represent and agree that it will
use the Services only in accordance with all applicable federal, state and local laws and regulations, and in accordance with the reasonable conditions, rules, regulations, and specifications that may be set forth in any manuals, materials,
documents, or instructions furnished from time to time by ARLP or its Affiliate to such entities. ARLP reserves the right to take all actions, including, without limitation, termination of any portion of the Services, that it reasonably believes is
required to assure compliance with applicable laws and regulations. 
 2.8 Warranties; Limitation of Liability. The
Services shall be provided in accordance with the Services Standard. EXCEPT AS SET FORTH IN THE PRECEDING SENTENCE, ARLP MAKES NO (AND HEREBY DISCLAIMS AND NEGATES ANY AND ALL) WARRANTIES OR REPRESENTATIONS WHATSOEVER, EXPRESS OR IMPLIED, WITH
RESPECT TO THE SERVICES. IN NO EVENT SHALL ARLP OR ANY OF ITS AFFILIATES BE LIABLE TO ANY OF THE PERSONS RECEIVING ANY SERVICES OR TO ANY OTHER PERSON FOR ANY EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES RESULTING
FROM ANY ERROR IN THE PERFORMANCE OF SUCH SERVICE, REGARDLESS OF WHETHER THE PERSON PROVIDING SUCH SERVICE, ITS AFFILIATES, OR OTHERS MAY BE WHOLLY, CONCURRENTLY, PARTIALLY, OR SOLELY NEGLIGENT OR OTHERWISE AT FAULT, EXCEPT TO THE EXTENT SUCH
EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES ARE PAID BY THE PARTY INCURRING SUCH DAMAGES TO A THIRD PARTY. 

2.9 Force Majeure. ARLP shall have no obligation to perform the Services if its failure to do so is caused by or results from any
act of God, governmental action, natural disaster, strike, failure of essential equipment, or any other cause or circumstance, whether similar or dissimilar to the foregoing causes or circumstances, beyond the reasonable control of ARLP. 

2.10 Affiliates. At its election, ARLP may cause one or more of its Affiliates or third party contractors reasonably acceptable to
the Party receiving any Services to provide such Services; provided, however, ARLP shall remain responsible for the provision of such Services in accordance with this Agreement. 

ARTICLE 3: OTHER AGREEMENTS 

3.1 Adoption of Policies and Procedures. The Boards of Directors of MGP, AGP and ARH II have adopted the policies and procedures
attached hereto as Exhibit B to govern their relationship with respect to this Agreement. 
  

 4 

 Execution Version 

 

 ARTICLE 4: MISCELLANEOUS 

4.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of
Delaware. 
 4.2 Termination. Any party hereto may terminate this Agreement by providing written notice to the other
Parties of its intention to terminate this Agreement, which notice must be provided at least 90 days prior to such termination. ARLP may terminate this Agreement by providing 30 days’ prior written notice to any of the AHGP Entities and the ARH
II Entities at any time during which a Payment Default has occurred and is continuing for a period of more than 30 days. 

4.3 Notices. All notices or requests or consents provided for or permitted to be given pursuant to this Agreement must be in
writing and must be given by depositing same in the United States mail, addressed to the Party to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person, by facsimile or electronic
mail to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile or by electronic mail shall be effective upon actual receipt if received during the recipient’s normal business
hours, or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the
address set forth below such Party’s signature to this Agreement, or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 4.3. 

4.4 Entire Agreement; Supersedure. This Agreement constitutes the entire agreement of the Parties relating to the matters
contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 

4.5 Effect of Waiver of Consent. No Party’s express or implied waiver of, or consent to, any breach or default by any Party
in the performance by such Party of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by such Party of the same or any other obligations of such Party hereunder.
Failure on the part of a Party to complain of any act of any Party or to declare any Party in default, irrespective of how long such failure continues, shall not constitute a waiver by such Party of its rights hereunder until the applicable statute
of limitations period has run. 
 4.6 Amendment or Modification. This Agreement may be amended or modified from time to
time only by the agreement of all the Parties affected by any such amendment; provided, however, that ARLP and AHGP may not, without the prior approval of its respective Conflicts Committee, agree to any amendment or modification of this
Agreement that, in the reasonable discretion of the MGP or AGP, as applicable, will materially and adversely affect the holders of units of ARLP or AHGP, as applicable. 

4.7 Assignment. No Party shall have the right to assign its rights or obligations under this Agreement without the consent of the
other Parties. 
  

 5 

 Execution Version 

 

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

4.9 Severability. If any provision of this Agreement or the application thereof to any Party or circumstance shall be held invalid
or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Parties or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 

4.10 Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each Party hereto
agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all
such transactions. 
 4.11 Withholding or Granting of Consent. Unless the consent or approval of a Party is expressly
required not to be unreasonably withheld (or words to similar effect), each Party may, with respect to any consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its sole and
uncontrolled discretion, with or without cause, and subject to such conditions as it shall deem appropriate. 
 4.12 U.S.
Currency. All sums and amounts payable or to be payable pursuant to the provisions of this Agreement shall be payable in coin or currency of the United States of America that, at the time of payment, is legal tender for the payment of public and
private debts in the United States of America. 
 4.13 Laws and Regulations. Notwithstanding any provision of this
Agreement to the contrary, no Party hereto shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such Party to be in violation of any applicable law, statute, rule or regulation.

 4.14 Negation of Rights of Third Parties. The provisions of this Agreement are enforceable solely by the Parties, and
no Limited Partner or other Person shall have the right to enforce any provision of this Agreement or to compel any Party to comply with the terms of this Agreement. 

 

 6 

 Execution Version 

 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their
respective authorized officers as of January 1, 2010. 
  

			
	ALLIANCE RESOURCE PARTNERS, L.P.
	
	 ALLIANCE RESOURCE MANAGEMENT GP, LLC

Individually and as Managing General Partner of Alliance Resource Partners, L.P.

		
	  
 By:
	 	/s/R. Eberley Davis
	Name:	 	R. Eberley Davis
	Title:	 	Senior Vice President, General Counsel and Secretary
	
	 Address for Notice:

1717 South Boulder Avenue
 Tulsa, Oklahoma 74119

 Facsimile No.: (918) 295-1415

	
	  

ALLIANCE RESOURCE OPERATING PARTNERS L.P.
  

ALLIANCE RESOURCE MANAGEMENT GP, LLC

Individually and as Managing General Partner of Alliance Resource Partners, L.P.

		
	  
 By:
	 	/s/R. Eberley Davis
	Name:	 	R. Eberley Davis
	Title:	 	Senior Vice President, General Counsel and Secretary
	
	 Address for Notice:

1717 South Boulder Avenue
 Tulsa, Oklahoma 74119

 Facsimile No.: (918) 295-1415

 

 Signature Page to Administrative Services Agreement 

 Execution Version 

 

			
	ALLIANCE HOLDINGS GP, L.P.
	
	 ALLIANCE GP, LLC

Individually and as General Partner of Alliance Holdings GP, L.P.

		
	  
 By:
	 	/s/R. Eberley Davis
	Name:	 	R. Eberley Davis
	Title:	 	Senior Vice President, General Counsel and Secretary
	
	 Address for Notice:

1717 South Boulder Avenue
 Tulsa, Oklahoma 74119

 Facsimile No.: (918) 295-1415

	
	  
 ALLIANCE RESOURCE HOLDINGS
II, LLC

		
	  
 By:
	 	/s/R. Eberley Davis
	Name:	 	R. Eberley Davis
	Title:	 	Senior Vice President, General Counsel and Secretary
	
	 Address for Notice:

1717 South Boulder Avenue
 Tulsa, Oklahoma 74119

 Facsimile No.: (918) 295-1415

 

 Signature Page to Administrative Services Agreement 

 Execution Version 

 

 Exhibit A 

DEFINED TERMS 

“Adjusted Administrative Services Fee” shall have the meaning set forth in Section 2.5. 

“Administrative Services Fee” shall have the meaning set forth in Section 2.3(a). 

“Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly through one or
more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. Notwithstanding the foregoing, a Person shall only be considered an “Affiliate” of the general partner of ARLP or AHGP, as
applicable, if such Person owns, directly or indirectly, 50% or more of the voting securities of such general partner or otherwise possesses the sole power to direct or cause the direction of the management and policies of such general partner;
provided however, that for purposes of this Agreement none of the ARLP Entities, or the ARH II Entities, as applicable, shall be deemed to be Affiliates of AGP. 

“Agreement” shall mean this Administrative Services Agreement, as it may be amended, modified, or supplemented from time
to time. 
 “Billing Agent” shall mean ARH II, and in the case of ARLP, MGP, and in the case of AHGP, AGP.

 “AHGP” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“AHGP Entities” shall mean AHGP and AGP and any Affiliate controlled (and only so long as such Affiliates are
controlled) by AHGP or AGP (as the term “control” is used in the definition of “Affiliate”) but excluding the ARLP Entities. 

“AGP” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“ARH II” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“ARH II Entities” shall mean ARH II and any Affiliate controlled (and only so long as such Affiliates are controlled) by
ARH II (as the term “control” is used in the definition of “Affiliate”) but excluding the ARLP Entities and the AHGP Entities. 

“ARLP” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“ARLP Entities” shall mean ARLP, MGP, OLP, Alliance Resource GP, LLC and any Affiliate controlled (and only so long as
such Affiliates are controlled) by ARLP, MGP, OLP, Alliance Resource GP, LLC (as the term “control” is used in the definition of “Affiliate”). 

 

 A-1 

 Execution Version 

 

 “Conflicts Committee” when used in reference to ARLP or an ARLP Entity,
shall have the meaning set forth in the partnership agreement of ARLP and when used in reference to AHGP or an AHGP Entity, shall have the meaning set forth in the partnership agreement of AHGP. 

“Effective Date” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“Entities” shall mean the ARLP Entities, the AHGP Entities and the ARH II Entities. 

“Fixed Charges Fee” shall have the meaning set forth in Section 2.3(b). 

“MGP” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“OLP” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“Party” shall mean any one of the Persons that executes this Agreement. 

“Payment Default” shall mean the failure of an Entity to pay the invoices described in Section 2.4 on or before the
45th day following the end of each fiscal quarter 
 “Person” means an individual or a corporation, limited
liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 

“Proposed Annex A” shall have the meaning set forth in Section 2.5. 

“Proposed Fixed Charges Fee” shall have the meaning set forth in Section 2.5. 

“Services” shall have the meaning set forth in Section 2.1. 

“Services Standard” shall mean, with respect to the performance of the Services, the good faith undertaking, on a
commercially reasonable basis, to perform the Services in all material respects in compliance with applicable laws and prudent industry practices. 
  

 A-2 

 Execution Version 

 

 Exhibit B 

CONFLICTS POLICIES AND PROCEDURES 

Capitalized terms used but not defined in this Exhibit B shall have the meanings assigned to such terms in that certain
Administrative Services Agreement, effective February     , 2010, of which this Exhibit B forms a part. 

This Exhibit B outlines the corporate governance structure and the policies and procedures that have been adopted by the
boards of directors of AGP, MGP and ARH II to address potential conflicts among, protect the confidential information of, and govern the sharing of ARLP personnel among, the Entities. 

Shared Services 

Employees of ARLP or its Affiliates may be assigned to perform Shared Services for all or any of the AHGP Entities and the ARH II
Entities. Employees of ARLP or its Affiliates performing Shared Services may be appointed to officer positions (including executive officer positions) at each of MGP, AGP and ARH II or their respective controlled Affiliates. As a result of their
performance of Shared Services, Shared Employees may obtain Commercial Information that relates to more than one of the groups of Entities. To the extent that any Shared Employee has Commercial Information that relates to any two or more of the ARLP
Entities, the AHGP Entities and the ARH II Entities, such Shared Employee shall not engage in any activities to which such Commercial Information relates unless such activities are approved by the Screening Officer of each respective Entity.

 Information Screening for Shared Employees 

To the fullest extent possible, Shared Employees should avoid access to Commercial Information for any Entities for which they do not
perform Commercial and Development Activities. To the extent that any Shared Employee who engages in Commercial and Development Activities becomes privy to Commercial Information of any Entities for which such employee does not perform Commercial
and Development Activities, such Shared Employee must report that fact and the nature of the Confidential Information to the Screening Officers who will maintain a record of the name of the person, the date of the report, and the nature of the
Commercial Information obtained by the Shared Employee. 
 Except as expressly permitted by the Screening Officers and to the
extent required to effectively perform the Shared Services, (i) Shared Employees shall not disclose Commercial Information of the ARLP Entities to any director, officer or employee associated with the AHGP Entities or ARH II Entities;
(ii) Shared Employees shall not disclose Commercial Information of the AHGP Entities to any director, officer or employee associated with the ARLP Entities or ARH II Entities and (iii) Shared Employees shall not disclose Commercial
Information of the ARH II Entities to any director, officer or employee associated with the ARLP Entities or AHGP Entities. 

Shared Employees should seek guidance on the foregoing restrictions from the Screening Officers to the extent that they are uncertain as
to an appropriate course of action. 
  

 B-1 

 Execution Version 

 

 Definitions 

For purposes of these policies and procedures, capitalized terms used but not defined above shall have the following meanings: 

“Commercial and Development Activities” shall mean operations of the Entities relating to sales, marketing, or other
services provided to customers; operation of or proposed changes to, such Entities’ assets; and the plans and strategies dealing with the business of such Entities. 

“Commercial Information” shall mean information about Commercial and Development Activities or other competitively
sensitive information of any Entities. Commercial Information includes information regarding prices, costs, margins, volumes and contractual terms for any particular customer; any method, tool or computer program used to determine prices for any
asset; all plans or strategies used or adopted to negotiate, target or identify a particular customer for any asset; all information regarding plans and prospective budgets to expand or build a new facility; all information regarding a proposal to
buy an existing facility; and capacity and capacity utilization of any facility. 
 “Independent Director”
shall mean an individual director who meets the independence, qualification and experience requirements established by the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Securities and Exchange Commission
thereunder and by the Nasdaq National Market. 
 “Screening Officer” shall mean the chief legal officer or
general counsel for each of ARH II, AGP and MGP. 
 “Shared Employees” shall mean employees of ARLP or its
Affiliates providing Shared Services. 
 “Shared Services” shall mean services provided by employees of ARLP or
its Affiliates to more than one of the groups of Entities comprising the ARLP Entities, the AHGP Entities and the ARH II Entities and such services shall include, but not be limited to, human resources, information technology, financial and
accounting services, legal services and such other services that do not involve Commercial and Development Activities. 
  

 B-2 

 Execution Version 

 

 ANNEX A 

PERSONNEL ALLOCATION 
  

							
	 	 	 Total Compensation
	 	 Percentage of Total
Compensation Allocable
to

	 Employee Name
	 	 	 AHGP
	  	ARH II

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