ALLIANCE RESOURCE MANAGEMENT GP, LLC
SHORT-TERM INCENTIVE PLAN
The purpose of the Short-Term Incentive Plan (the "Plan") is to motivate the employees of Alliance Resource
Management GP, LLC (the "Company") and its affiliates who perform services for Alliance Resource Partners,
L.P., a Delaware limited partnership, and its subsidiaries (the "Partnership") to collectively produce outstanding
results, encourage superior performance, increase productivity, and aid in the retention of key employees.
2. PLAN GUIDELINES.
The administration of the Plan and any potential financial renumeration to come as a result of its implementation is
subject to the determination by the Company's Board of Directors and/or its Compensation Committee
(collectively, the "Compensation Committee") that the performance goals for the applicable period have been
achieved. The Plan is an additional compensation program designated to encourage Plan Participants (designated
by the Company's Compensation Committee) to exceed specified projected performance levels for designated
periods. The Plan's pay-out pool will be approved by the Company's Compensation Committee after reviewing
the Partnership's performance results for the designated period.
3. PERFORMANCE TARGETS.
3.1 Designation of Performance Targets. The Compensation Committee shall determine the "performance
measure" and "standard performance target" to be used for each calendar/fiscal year (a "Plan Year") for
determining the pool of dollars to be distributed as a result of this Plan. Satisfactory results as determined by the
Compensation Committee in its sole discretion must be achieved in order for a performance pay-out distribution
to occur under the Plan.
3.2 Equitable Adjustment to Performance Targets. The performance criteria for a Plan Year shall be subject to
equitable adjustment at the sole discretion of the Compensation Committee to reflect the occurrence of any
significant events during the Plan Year.