Document:

Memorandum of Understanding

 Exhibit 10.33 
 Portions of this exhibit indicated by “******” have been omitted pursuant to 
 a request
for confidential treatment under Rule 24b-2 of the Securities 
 Exchange Act of 1934, as amended, and the omitted material has been

 separately filed with the Securities and Exchange Commission 
 MEMORANDUM OF UNDERSTANDING 
 This Memorandum of Understanding
(“MOU”), made effective January 1, 2007, (the “MOU”), between VIRGINIA ELECTRIC AND POWER COMPANY, a Virginia public service corporation with its principal office located in Richmond, Virginia, doing business in the
Commonwealth of Virginia as “Dominion Virginia Power” and in the State of North Carolina as “Dominion North Carolina Power” (hereinafter referred to as “Buyer”), on the one hand, and Alliance Coal, LLC, a Delaware
limited liability company with its principal office located in Tulsa, Oklahoma, (hereinafter referred to as “Seller”), Mettiki Coal (WV), LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of Seller
(hereinafter referred to as “Mettiki (WV)”), and Mettiki Coal, LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of Seller (hereinafter referred to as “Mettiki”), on the other hand. Buyer, Seller,
Mettiki (WV) and Mettiki sometimes are referred to hereinafter individually as a “party” and collectively as the “parties.” 
 Recitals: 
 WHEREAS, Buyer and Seller entered into an agreement entitled “Agreement for the Supply of Coal to Mt. Storm Power
Station between Virginia Electric and Power Company and Alliance Coal, LLC” dated June 22, 2005, (the “Agreement”), pursuant to which Seller will supply coal to the Mt. Storm Station beginning on or after January 1, 2007 and
continuing through December 31, 2013; and 
 WHEREAS, capitalized terms herein shall have the same meaning ascribed to such terms in the
Agreement, as amended by Amendment No. 1, as set forth below, and ascribed to such terms in all other agreements as specifically referenced herein, unless otherwise defined herein; and 
 WHEREAS, simultaneous with the execution of this MOU by the parties, Buyer and Seller have entered into that certain Amendment No. 1 to the
Agreement effective January 1, 2007, pursuant to which Seller will supply additional Spot Tonnage to the Mt. Storm Station beginning on or after January 1, 2007 and shall continue up through December 31, 2008; and 
 WHEREAS, simultaneous with the execution of this MOU by the parties, Buyer and Mettiki Coal, LLC have entered into that certain Termination Agreement
relating to that certain Second Restated and Amended Fuel Supply and Ash Management Services Agreement to North Branch Power Station effective as of July 1, 2003 (“Termination Agreement”); and 
  

 WHEREAS, simultaneous with the execution of this MOU by the parties, Buyer and Mettiki (WV) have entered
into that certain Third Restated and Amended Fuel Supply and Ash Management Services Agreement effective January 1, 2007, (the “North Branch Agreement”) pursuant to which Mettiki (WV) will supply Fuel to the North Branch Station and
provide for the removal and management of Ash generated by the North Branch Power Station beginning on or after January 1, 2007 and continuing through December 31, 2008; and 
 WHEREAS, Seller anticipates that it will be able to realize certain benefits from the Maryland mined coal tax credit which may be accomplished by Seller
selling its Maryland mined coal intended for delivery to Buyer under the Agreement to a qualified utility (or utilities) which can take a credit against their public utility franchise tax under Md. Code Ann., Tax-Gen. § 8-406(b) (1997 Repl.
Vol.) (the “Maryland Tax Credit”); and 
 WHEREAS, Buyer and Seller desire to agree upon certain terms and conditions to amend the
Agreement to enable Seller to realize the Maryland Tax Credit by having Seller sell its Maryland mined coal intended for delivery to Buyer under the Agreement to a qualified utility (“Monetizer”) (or utilities) (“Monetizers”),
which Monetizer (or Monetizers), under a separate agreement, shall in turn either (1) sell such coal directly to Buyer (“Monetizer Coal Supply Agreement”), or (2) sell such coal to a third party supplier (or third party
suppliers), which third party supplier (or third party suppliers) under a separate agreement, shall in turn sell such Maryland mined coal to Buyer (“Third Party Coal Supply Agreement”), which under either sale arrangement, shall be blended
by Seller with other coal that is delivered to the Mt. Storm Power Station by Seller with such blended coal then delivered to Buyer under the Agreement; and 
 WHEREAS, the coal purchased by Buyer under a Monetizer Coal Supply Agreement and/or a Third Party Coal Supply Agreement shall serve to reduce the quantity of coal that is required to be purchased by Buyer from Seller
under the Agreement; and 
 WHEREAS, for and in consideration of Buyer entering into any Monetizer Coal Supply Agreement and/or a Third Party
Coal Supply Agreement to enable Seller to realize the Maryland Tax Credit, Seller agrees to indemnify and hold Buyer, and its affiliates, parents, subsidiaries, officers, directors, agents and others acting on its behalf, harmless from and against
any additional costs, expenses or liability incurred as a result thereof; and 
 WHEREAS, simultaneous with the execution of this MOU by the
parties, Seller agrees to issue Buyer a credit in the amount of $******, which is equal to $****** per ton for ****** tons of the total tons of coal sold during the period ****** through ****** by (1) Mettiki to Mount Storm Supply under
(i) the Restated and Amended Feedstock Agreement No. 1, effective June 1, 2006 and (ii) Purchase Order No. 75, effective December 20, 2006, and (2) by Seller to Mount Storm Supply under (i) the Restated and
Amended Feedstock Agreement No. 2, effective June 1, 2006 and (ii) Purchase Order No. 77, effective January 1, 2007, of which coal was produced into synfuel; and 
  

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 WHEREAS, at such time as Buyer actually enters into a Monetizer Coal Supply Agreement and/or a Third
Party Coal Supply Agreement which enables Seller to realize the Maryland Tax Credit, Seller agrees to issue Buyer an additional one-time credit in the amount of $******, which is equal to $****** per ton for ****** tons of the total tons of coal
sold on or after ****** by Seller to Mount Storm Supply under (i) the Restated and Amended Feedstock Agreement No. 2, effective June 1, 2006 and (ii) Purchase Order No. 77, effective January 1, 2007, of which coal was
produced into synfuel. 
 NOW THEREFORE, for and in consideration of the above recitals which are incorporated herein, and the covenants and
premises herein set forth, Buyer, Seller, Mettiki (WV) and Mettiki hereby agree, intending to be legally bound, as follows: 
  

	 	1.	Maryland Tax Credit. 

 (a) After
execution of this MOU, Seller intends to enter into a coal supply agreement with a qualified Monetizer (or Monetizers) which can take a credit against its public utility franchise tax under Md. Code Ann., Tax-Gen. § 8-406(b) (1997 Repl. Vol.)
for the purchase of Maryland mined coal (hereinafter referred to as “Monetizer(s)”) who is willing to (a) purchase Seller’s Maryland mined coal and (b) enter into a Monetizer Coal Supply Agreement directly with Buyer or
(2) sell such coal to a third party supplier (or third party suppliers), which Seller shall cause such third party supplier (or third party suppliers) to in turn sell such Maryland mined coal to Buyer under a Third Party Coal Supply Agreement.
(All agreements referenced above are hereinafter referred to collectively as the “Maryland Tax Credit Agreements”). 
 (b) The term of the Maryland Tax Credit Agreements shall be for such period of time that Seller is able to realize certain benefits from the Maryland mined coal tax credit. 
 (c) After the execution of this MOU, Buyer agrees to enter into a Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement
proposed by Seller which contain terms and conditions reasonably acceptable to Buyer, of which acceptance shall not be unreasonably conditioned, delayed or withheld by Buyer. 
 (d) The purchase price of the coal payable by Buyer under the Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement
will be equal to the then existing Price payable by Buyer to Seller under the Agreement, but without adjustments for heating value or other quality parameters. All heating value and other quality adjustments applicable to the coal sold to Buyer
under the Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement shall be based upon the quality after the coal is blended with Seller’s coal at the Storage and Blending Facility, after which the quality adjustments shall be
determined pursuant to the Agreement and payable by Buyer to Seller, or owed by Seller to Buyer, as the case may be, for the combined total of the coal delivered by Seller under the Agreement and the coal delivered to Buyer under the Monetizer Coal
Supply Agreement(s) and/or Third Party Coal Supply Agreement(s). 
  

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 (e) For invoicing and payment purposes, Seller shall advise Buyer of (i) the amount
of tonnage received by Buyer under the Agreement and (ii) the amount of tonnage received by Buyer under the Monetizer Coal Supply Agreement(s) and/or Third Party Coal Supply Agreement(s), which shall combined equal the amount of coal received
by Buyer at the end of the “P” conveyor at the transfer building. 
 (f) Seller shall (1) negotiate and prepare
the Maryland Tax Credit Agreements, or any amendments thereto, (2) coordinate the submission to Buyer for execution each proposed Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement to be entered into between Buyer and a
designated third party supplier, (3) on behalf of the third party supplier, prepare and deliver to Buyer all invoices for coal sold under a Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement in accordance with the terms
thereof, (4) assist the third party supplier in the collection of any payment due from Buyer for the sale of coal under the Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement, and (5) provide such other duties and
obligations with respect to the administration of the Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreements as needed. 
 (g) In regard to any Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement(s) entered into by Buyer at Seller’s request, Seller hereby agrees to timely perform all obligations and make all coal
deliveries when due under such Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement(s) in the event the third party supplier fails to perform or otherwise deliver coal thereunder. It is the intent of the parties that Buyer’s
rights and obligations arising under a Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement shall not be less than or greater than Buyer’s rights and obligations arising under the Agreement. Accordingly, Buyer and Seller
acknowledge that any coal sold under such Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement(s) will automatically reduce on a corresponding basis the quantity of coal that Buyer is or remains obligated to purchase from Seller
or that Seller is or remains obligated to sell to Buyer pursuant to the Agreement. Except as set forth in the preceding sentence, the terms and provisions of the Agreement shall continue in full force and effect. Therefore, if the Monetizer Coal
Supply Agreement and/or Third Party Coal Supply Agreement is terminated for any reason, or if the third party supplier fails to deliver coal as required under the Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement or if third
party supplier is excused from delivering coal due to a force majeure event thereunder, Buyer and Seller shall remain obligated to purchase and sell coal in accordance with the terms of the Agreement. Additionally, upon any cancellation or
termination of a Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement, any make-up, shortfall or undelivered quantities arising under such Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement shall be
transferred to, and controlled by, the Agreement. Seller will be fully liable and responsible under this Agreement for any failure by the third party supplier, whether arising by breach or otherwise, to sell any quantities of coal under the
Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement to Buyer. Seller represents and warrants to Buyer that Seller will act as the third party supplier’s exclusive administrator and agent in regard to the management and
administration of the Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement with 

  

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authority to schedule coal shipments, resolve disputes and provide remedies on the third party supplier’s behalf under the Monetizer Coal Supply
Agreement and/or Third Party Coal Supply Agreement. In the event that Seller ceases to act in such capacity or to exercise the stated functions on behalf of the third party supplier, Seller shall promptly notify Buyer who shall have the right, upon
10 days prior written notice to Seller and the third party supplier, to terminate the affected Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement(s). 
 (h) A force majeure event occurring under the Agreement shall be deemed to be a force majeure event under the Monetizer Coal Supply
Agreement(s) and/or Third Party Coal Supply Agreement(s). 
 (i) Except with respect to Buyer’s obligation to enter into
Monetizer Coal Supply Agreement(s) and/or Third Party Coal Supply Agreement(s) as provided in this MOU, Seller shall bear the entire risk, cost and expense with regard to the Maryland mined tax credits including, without limitation, obtaining
Monetizers and third party suppliers to participate in the Maryland Tax Credit Agreements as well as obtaining all necessary governmental approvals for such tax credits. 
  

	 	2.	Seller’s Indemnification to Buyer. 

 For and in consideration of Buyer entering into any Monetizer Coal Supply Agreement and/or Third Party Coal Supply Agreement to enable Seller to realize the Maryland Tax Credit, Seller shall indemnify and hold Buyer, and its affiliates,
parents, subsidiaries, officers, directors, agents and others acting on its behalf, harmless from and against any additional costs, expenses or liability incurred as the result thereof, including but not limited to any insolvency or bankruptcy of
any third party supplier. If Buyer desires to assert an indemnity claim, Buyer shall provide Seller with written notice of such indemnity claim within a reasonable period of time (but in no event more than sixty (60) days) after it becomes
aware of the factual basis for such indemnity claim. At the time the indemnity claim is made and thereafter, Buyer shall provide Seller with copies of all materials in its possession that provide background with respect to questions at issue or
containing information describing the basis of the indemnity claim. If the indemnity claim involves a claim by a third party, Seller may assume at its own expense the defense of the claim. Buyer may participate in any such proceeding at its own
expense through its own counsel. 
  

	 	3.	Synfuel Service Fees Credit  

 (a) Contingent upon
the execution of this MOU, the execution and performance under the North Branch Agreement and under the Agreement, as amended by Amendment No. 1 and the execution of the Termination Agreement, no later than ****** Seller shall issue Buyer a
credit in the amount of $******, which is equal to $****** per ton for the first ****** tons of coal sold during the period ****** through ****** by (1) Mettiki to Mount Storm Supply under (i) the Restated and Amended Feedstock Agreement
No. 1, effective June 1, 2006 and (ii) Purchase Order No. 75, effective December 20, 2006, and (2) by Seller to 

  

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Mount Storm Supply under (i) the Restated and Amended Feedstock Agreement No. 2, effective June 1, 2006 and (ii) Purchase Order
No. 77, effective January 1, 2007, of which coal was produced into synfuel; and 
 (b) At such time Buyer actually enters into a
Monetizer Coal Supply Agreement and/or a Third Party Coal Supply Agreement as provided for herein which enables Seller to realize the Maryland Tax Credit, Seller agrees to issue Buyer an additional one-time credit in the amount of $******, which is
equal to $****** per ton for ****** tons of the total tons of coal sold on or after ****** by Seller to Mount Storm Supply under (i) the Restated and Amended Feedstock Agreement No. 2, effective June 1, 2006 and (ii) Purchase
Order No. 77, effective January 1, 2007, of which coal was produced into synfuel. 
 4. This MOU shall be governed by the laws of
the Commonwealth of Virginia, without giving effect to principles of conflicts of laws, and shall be binding upon the parties hereto and their respective successors and permitted assigns, except that no party shall assign any of their rights or
delegate any of their obligations hereunder except with the prior written consent of the other party hereto. The parties hereto agree that this MOU is a legally, binding agreement, and not an agreement to agree, and shall be enforceable against the
parties hereto in accordance with its terms. 
 5. This MOU may not be amended, supplemented or otherwise modified, and no provision of this
MOU may be waived, except by a written instrument signed by all of the parties hereto. 
 6. This MOU constitutes the parties’ entire
agreement with respect to the subject matter hereof, and supersedes any and all prior agreements or understandings between the parties with respect to the matters referred to herein. Except as provided in this MOU, the parties acknowledge and agree
that, notwithstanding any other term or provision contained in this MOU, neither Buyer or Seller will have any greater, reduced, additional or changed obligation or liability to each other as a result of Seller entering into any Monetizer Coal
Purchase Agreement and/or Buyer entering into any Monetizer Coal Supply Agreement. 
 (Signature page follows) 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be
executed in duplicate originals as of the date first written above. 
  

			
	 Virginia Electric and Power Company

		
	 By:
	 	/s/ Karla J. Haislip
		
	 Name:
	 	Karla J. Haislip
		
	 Title:
	 	Authorized Representative
	
	Alliance Coal, LLC
		
	 By:
	 	/s/ Robert G. Sachse
		
	 Name:
	 	Robert G. Sachse
		
	 Title:
	 	Executive Vice President
	
	Mettiki Coal (WV), LLC
		
	 By:
	 	/s/ Robert G. Sachse
		
	 Name:
	 	Robert G. Sachse
		
	 Title:
	 	Executive Vice President
	
	Mettiki Coal, LLC
		
	 By:
	 	/s/ Robert G. Sachse
		
	Name:	 	Robert G. Sachse
		
	Title:	 	Executive Vice President

  

 7Charter for the Compensation Committee of the Board of Directors

 Exhibit 10.49 
 ALLIANCE RESOURCE PARTNERS, L.P. 
 COMPENSATION COMMITTEE CHARTER 
 Adopted: February 28, 2007 
  

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 COMPENSATION COMMITTEE CHARTER 
 Adopted February 28, 2007 
  

	I.	Purpose of Committee 

 The purpose of the
Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Alliance Resource Management GP, LLC (the “Company”), the managing general partner of Alliance Resource Partners, L.P. (the
“Partnership”), is to discharge the Board’s responsibilities relating to compensation of the Partnership’s executives and the Company’s directors and to produce an annual report relating to the CD&A (as defined below)
for inclusion in the Partnership’s Annual Report on Form 10-K, in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). 
  

	II.	Committee Membership 

 The Committee shall be
composed of three or more members of the Board, each of whom the Board has determined has no material relationship with the Company, the Partnership or any of its consolidated subsidiaries and each of whom is otherwise “independent” under
the NASDAQ rules. 
 All matters before the Committee shall be determined by a majority vote of the Committee members present. 
 Members shall be appointed by the Board and shall serve at the pleasure of the Board and for such terms as the Board may determine. 
  

	III.	Committee Structure and Operations 

 The
Board shall designate one member of the Committee as its chairperson. The Committee shall meet in person or telephonically at least once a year at a time and place determined by the Committee chairperson, with further meetings to occur, or actions
to be taken by unanimous written consent, when deemed necessary or desirable by the Committee or its chairperson. The Committee shall produce a report that summarizes the actions taken at each Committee meeting, and such report shall be presented to
the Board at the next Board meeting. 
 The Committee may invite such members of management to its meetings, as it may deem desirable or
appropriate, consistent with the maintenance of the confidentiality of compensation discussions. The Partnership’s President and Chief Executive Officer (the “CEO”) should not attend any meeting where the CEO’s performance or
compensation are discussed, unless specifically invited by the Committee. 
  

	IV.	Committee Duties and Responsibilities 

 The
following are the duties and responsibilities of the Committee: 
  

	 	1.	To review and recommend to the Company’s Board of Director for approval corporate goals and individual objectives relative to the CEO’s compensation, and evaluate the
CEO's performance in light of those goals and objectives and to set the CEO's compensation level based on this evaluation. 

  

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	 	2.	To review and recommend to the Company’s Board of Director for approval corporate goals and objectives relative to the Partnership’s senior executive officers, including
the Partnership’s named executive officers' compensation, evaluate the Partnership’s senior executive officers' performance in light of those goals and objectives, and to set the senior executives compensation levels based on this
evaluation. 

  

	 	3.	Review and approve, in consultation with senior management, the Partnership’s general compensation philosophy, strategy, policies and programs. 

  

	 	4.	Review and approve, in consultation with senior management, the Partnership’s executive compensation programs including the establishment of salaries and other compensation for
the Partnership’s CEO, Chief Financial Officer and the other executive officers, including those named in the Summary Compensation Table. 

  

	 	5.	Review and approve the Partnership’s management incentive compensation plans, and equity-based plans, including, without limitation, the Partnership’s short-term incentive
plan (STIP), long-term incentive plan (LTIP) and supplemental executive retirement plan (SERP). 

  

	 	6.	Review and recommend to the Company’s Board of Directors for approval grants of restricted units under the LTIP or other awards pursuant to such plan and any other equity-based
plans, if applicable. 

  

	 	7.	Periodically review senior management’s recommendations with respect to the Partnership’s ERISA-qualified benefit plans and retirement program. 

 

	 	8.	Review perquisites or other personal benefits to the Partnership’s executive officers and the Company’s directors and recommend any changes to the Company’s Board of
Directors. 

  

	 	9.	Review expense statements of executive officers. 

  

	 	10.	To the extent we have any employment agreements or any of the following arrangements, review and approve any employment agreements, severance or termination arrangements or change
of control arrangements to be made with any executive officer of the Partnership. 

  

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	 	11.	Approve a policy regarding director compensation and recommend to the Company’s Board of Directors annual retainer amounts consistent with the director compensation policy.

  

	 	12.	In connection with the Partnership’s Annual Report on Form 10-K or other applicable SEC filing: 

  

	 	(A)	review and discuss with management the Compensation Discussion and Analysis (“CD&A”) required by SEC Regulation S-K, Item 402. Based on such review and
discussion, recommend to the Company’s Board of Directors that the CD&A be included in the Partnership’s Annual Report on Form 10-K or other applicable SEC filing. 

  

	 	(B)	prepare the compensation committee report in accordance with all applicable rules and regulations of the SEC for inclusion above the names of the members of the compensation
committee in the Partnership’s Annual Report on Form 10-K. This report shall state the Committee (i) reviewed and discussed with management the CD&A and (ii) based on such review and discussion, recommended to the Company’s
Board of Directors that the CD&A be included in the Partnership’s Annual Report on Form 10-K or other applicable SEC filing. 

  

	 	13.	In its sole discretion, have the ability to retain experts, consultants and other advisors, including without limitation, independent counsel, compensation consulting firms and
legal or other advisors as the Committee deems necessary, to aid in the Committee’s discharge of its duties. 

  

	 	14.	Perform such other activities consistent with the Committee’s charter, the Partnership’s partnership agreement, the Partnership’s Certificate of Limited Partnership,
the Company’s Certificate of Formation, governing law, the rules and regulations of the NASDAQ and such other requirements applicable to us as the Committee or the Company’s Board of Directors deem necessary or appropriate.

  

	 	15.	Review and reassess the adequacy of the Committee’s charter annually and submit recommended changes, if any, to the Company’s Board of Directors for its consideration and
approval. 

  

	 	16.	Annually perform an evaluation of itself. 

  

	V.	Delegation to Subcommittee 

 The Committee
may, in its discretion, delegate all or a portion of its duties and responsibilities to a subcommittee of the Committee. In particular, the Committee may delegate the approval of certain transactions to a subcommittee composed solely of one or more
members of the Committee who are (i) “Non-Employee Directors” for the purposes of Rule 16b-3 under the Securities Exchange Act of 1934, as in effect from time to time, and (ii) “outside directors” for the purposes of
Section 162(m) of the Internal Revenue Code, as in effect from time to time. 
  

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	VI.	Resources and Authority of the Committee 

 The Committee shall have the resources and authority appropriate to discharge its duties and responsibilities, including the authority to select, retain, terminate, and approve the fees and other retention terms of special counsel or other
experts or consultants, as it deems appropriate, without seeking approval of the Board or management. With respect to consultants retained to assist in the determination or evaluation of director, CEO or senior executive compensation, this authority
shall be vested solely in the Committee. 
  

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