Document:

Amendment No. 2 to Letter of Credit Facility Agreement

 Exhibit 10.1 
 AMENDMENT NO. 2 
 TO 
 LETTER OF CREDIT FACILITY AGREEMENT 
 This AMENDMENT NO. 2, dated as of April 24, 2006 (the
“Amendment”), to the Letter of Credit Facility Agreement, dated as of August 30, 2001 (as amended, extended or supplemented to date, the “Letter of Credit Facility Agreement”), is by and between ALLIANCE RESOURCE PARTNERS,
L.P., a Delaware limited partnership (the “Borrower”), and FIFTH THIRD BANK, an Ohio banking corporation (the “Lender”). Capitalized terms used herein without definition shall have the respective meanings specified in the Letter
of Credit Facility Agreement. 
 W I T N E S S E T H 
 WHEREAS, the Borrower and Lender entered into the Letter of Credit Facility Agreement as of August 30, 2001, and entered into Amendment No. 1
to the Letter of Credit Facility Agreement on December 20, 2002. 
 WHEREAS, pursuant to the Letter of Credit Facility Agreement, the
Lender has made available to the Borrower a letter of credit facility, upon the terms and conditions specified in the Letter of Credit Facility Agreement; 
 WHEREAS, the Borrower has requested a modification to one or more terms of the Letter of Credit Facility Agreement, and the Lender is willing to make such modifications; 
 WHEREAS, contemporaneously with the execution and delivery hereof, the Lender is entering into the Termination of Guaranty Agreement, dated the date
hereof, pursuant to which the Lender has agreed to terminate the Guaranty Agreement; and 
 WHEREAS, upon the terms and subject to the
conditions contained herein, the parties hereto wish to amend the Letter of Credit Facility Agreement. 
 NOW, THEREFORE, in consideration of
the premises and the mutual agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Amendment to Sections 1.3, 1.20, 1.21 and 1.22. The definitions contained in Sections 1.3, 1.20, 1.21 and 1.22 of the Letter of Credit Facility
Agreement are hereby deleted in their entirety and replaced with the words “Intentionally omitted”. 
 2. Amendment to
Section 1.8. Section 1.8 of the Letter of Credit Facility Agreement is hereby deleted its entirety and replaced with the following: 
 “1.8. “Cash Equivalents” means any of the following: (a) cash; (b) marketable securities of any issuer (including, without limitation, any corporation or governmental authority) and, if
applicable, of any duration; and (c) any other item determined in accordance with GAAP to constitute cash or cash equivalents.” 

 3. Amendment to Section 1.25. Section 1.25 of the Letter of Credit Facility Agreement is
hereby deleted in its entirety and replaced with the following: 
 “1.25. “Letter of Credit Commitment”
means the commitment of the Lender to issue Letters of Credit in an amount up to $26,000,000, as the same may be reduced in accordance with Sections 2.4 and 7.1(iii) hereof.” 
 4. Amendment to Section 1.31. Section 1.31 of the Letter of Credit Facility Agreement is hereby deleted in its entirety and replaced
with the following: 
 “1.31. “Opinion of Borrower’s Counsel” shall mean an opinion from
Borrower’s counsel, dated the Effective Date and addressed to Lender, substantially in form and content as set forth on Schedule “1.31” hereto.” 
 5. Amendment to Section 2.4. Section 2.4 of the Letter of Credit Facility Agreement is hereby amended by deleting the following
sentence: “Any such reduction of the Letter of Credit Commitment shall effect a reduction in the liquidity covenant required to be complied with on the part of the Guarantor as contemplated by Section 6.8 hereof.” 
 6. Amendment to Section 3.1. Section 3.1 of the Letter of Credit Facility Agreement is hereby amended by (i) deleting Sections
3.1.1 and 3.1.3 in their entirety and replacing them with the words “Intentionally omitted”, and (ii) deleting the words “and Guarantor’s” from Section 3.1.4. 
 7. Amendment to Section 5.1. Section 5.1 of the Letter of Credit Facility Agreement is hereby deleted in its entirety and replaced with
the following: 
 “5.1. Financial Statements. All financial statements heretofore delivered to Lender relating to
the Borrower are true and correct in all material respects, have been prepared in accordance with Borrower’s past practices consistently applied, and fairly present (subject to year-end audit adjustments) the financial conditions reflected
therein without material changes since the dates thereof.” 
 8. Amendment to Section 6.5. Section 6.5 of the Letter of
Credit Facility Agreement is hereby deleted in its entirety and replaced with the following: 
 “6.5. Insolvency.
Borrower shall: (i) apply for or consent to the appointment of a receiver, trustee or liquidator of Borrower or its properties; (ii) admit in writing the inability to pay its debts as they mature; (iii) make a general assignment for
the benefit of creditors; (iv) commence any proceeding relating to the bankruptcy, reorganization, liquidation, receivership, conservatorship, insolvency, readjustment of debt, dissolution or liquidation of Borrower or, if action shall be taken
against Borrower for the purpose of effecting any proceeding described in this clause (iv), such proceeding is not dismissed or stayed within sixty (60) calendar days of such proceeding filing date, or (v) become insolvent.”

  

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 9. Amendment to Section 6.8. Section 6.8 of the Letter of Credit Facility Agreement is
hereby deleted in its entirety. 
 10. Miscellaneous. 
 (a) Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Ohio, without giving effect to the conflicts of laws principles thereof. 
 (b) Ratification. Except as hereby expressly amended by this Amendment, the terms, covenants, conditions, agreements and representations and
warranties contained in the Letter of Credit Facility Agreement are in all respects ratified and confirmed and remade as of the date hereof and, except as amended hereby, shall continue in full force and effect. 
 (c) Entire Agreement. This Amendment represents the agreement of the parties hereto with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by the parties hereto relative to the subject matter hereof not expressly set forth or referred to herein. 
 (d) Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall be deemed one and the same instrument. 
 (e) Headings. The section headings and subsection headings have been inserted for convenience of reference only and do not constitute matters to
be considered in interpreting this Amendment. 
 [signature page follows] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to Letter of Credit Facility
Agreement to be duly executed by their respective officers as of the day and year first above written. 
  

							
	“Borrower”
	
	 ALLIANCE RESOURCE PARTNERS, L.P.,
 a Delaware
limited partnership

			
		 	By:	 	ALLIANCE RESOURCE MANAGEMENT GP, LLC, its managing general partner
				
		 		 	By:	 	 /s/ Cary P. Marshall

		 		 	Name:	 	Cary P. Marshall
		 		 	Title:	 	VP – Corporate Finance & Treasurer
	
	“Lender”
	
	FIFTH THIRD BANK
		
	By:	 	 /s/ Mike Mendenhall

	Name:	 	Mike Mendenhall
	Title:	 	Assistant Vice President

  

 4Termination of Guarantee Agreement

 Exhibit 10.2 
 TERMINATION OF GUARANTY AGREEMENT 
 This Termination of Guaranty Agreement, dated April 24, 2006
(the “Termination Agreement”), is by and between ALLIANCE RESOURCE GP, LLC, a Delaware limited liability company (“Guarantor”), and FIFTH THIRD BANK, an Ohio banking corporation (“Lender”). 
 W I T N E S S E T H: 
 WHEREAS, Guarantor and
Lender are parties to a Guaranty, dated August 30, 2001 (the “Guaranty”), pursuant to which Guarantor agreed to guarantee the payment by Alliance Resource Partners, L.P., a Delaware limited partnership (“Borrower”), of all
amounts owing under that certain Letter of Credit Facility Agreement, dated as of August 30, 2001 (as amended), between Borrower and Lender. 
 WHEREAS, the parties hereto wish to terminate the Guaranty effective as of the date hereof; and 
 WHEREAS, each party hereto wishes
to irrevocably release the other party hereto from all of its respective obligations and liabilities under the Guaranty. 
 NOW, THEREFORE,
in consideration of the premises and the 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: 
 Section 1. Termination and Release. The Lender irrevocably agrees that the Guaranty is hereby terminated as of the date hereof, that Guarantor
shall have no further obligations, duties or liabilities thereunder, and the Lender hereby releases, waives and forever discharges Guarantor from all obligations, duties or liabilities of whatever nature arising under or in connection with the
Guaranty. 
 Section 2. Counterparts. This Termination Agreement may be executed in any number of counterparts and by different
parties hereto on separate counterparts, each complete set of which, when so executed and delivered by all parties, shall be an original, but all such counterparts shall together constitute one and the same instrument. 
 Section 3. Headings. The section headings in this Termination Agreement are for convenience of reference only and shall not be deemed to
alter or affect the meaning or interpretation of any provision hereof. 
 Section 4. Amendments; etc. No amendment, modification
or supplement to this Termination Agreement, or waiver of any provision or right hereunder by any party hereto, shall be effective unless in writing and executed by the parties hereto. This Termination Agreement shall be binding upon the parties
hereto and their respective successors and permitted assigns. 

 Section 5. Governing Law. This Termination Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio, without regard to the conflicts of laws principles thereof. 
 IN WITNESS WHEREOF, the parties
hereto have caused this Termination Agreement to be executed on the date first above written. 
  

			
	FIFTH THIRD BANK
		
	By:	 	 /s/ Mike Mendenhall

	Name:	 	Mike Mendenhall
	Title:	 	Assistant Vice President
	
	ALLIANCE RESOURCE GP, LLC
		
	By:	 	 /s/ Cary P. Marshall

	Name:	 	Cary P. Marshall
	Title:	 	VP – Corporate Finance & Treasurer

  

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