Common use of TERM AND QUANTITY Clause in Contracts

TERM AND QUANTITY. 1.1 The term of this Agreement (the "Term") shall be the period commencing on the date hereof and ending on the date of exhaustion of the Reserve Commitment (as hereinafter defined) (the "Expiration Date"). 1.2 During the Term, Buyer agrees to buy, and Seller agrees to sell, [_ _ _ _] produced by the Source Mine from existing reserves, as identified on Schedule 1.2 hereto, currently estimated to be not less than [_ _ _ _], and from all additional reserves assigned to Seller for purposes of this Agreement by mutual consent of the parties (collectively, the "Reserve Commitment"), at the following annual rates (the "Annual Base Amount"): CALENDAR YEAR ANNUAL BASE AMOUNT 2005 Actual production from the Source Mine, estimated to be [_ _ _ _] tons 2006 Actual production from the Source Mine, estimated to be [_ _ _ _] tons, but at a production rate of not less than * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. [_ _ _ _] by October 1, 2006 2007-Expiration Date [_ _ _ _] Buyer shall have the option, upon not less than six (6) months' prior notice to Seller, to increase the Annual Base Amount (for calendar years occurring after 2005) by [_ _ _ _] (prorated in the case of the portion of the calendar year remaining after such increase takes effect) so as to increase the Annual Base Amount to [_ _ _ _], subject to availability of equipment at the Source Mine required by Seller to produce coal to be sold hereunder in such quantities ("Increased Production Equipment"). If Seller is unable to produce the increased Annual Base Amount due to unavailability of the Increased Production Equipment, Seller shall use commercially reasonable efforts to obtain the Increased Production Equipment (including, without limitation, by diverting equipment from other mines to the extent not currently in use or anticipated to be used in such other mines) prior to the expiration of such six month period, and in any event shall obtain the Increased Production Equipment prior to the expiration of eighteen (18) months after receipt of Buyer's notice. Once the Annual Base Amount is increased pursuant to this Section 1.2, it may not be decreased without the mutual consent of the parties. Seller shall not change the source of the coal supplied hereunder (the "Base Source Coal") without the prior written consent of Buyer's Agent. Seller represents to Buyer that the current assigned reserves of the Source Mine comprising the Reserve Commitment are as set forth in Schedule 1.2 hereto. Seller shall not reduce the assigned reserves of the Source Mine below that reflected in Schedule 1.2 without the prior written consent of Buyer's Agent.

TERM AND QUANTITY. 1.1 The term of this Agreement (the "Term") shall be the period commencing on the date hereof and ending on the date of exhaustion "Expiration of the Reserve Commitment (as hereinafter defined) (the "Expiration Date").. sell, 1.2 During the Term, Buyer agrees to buy, and Seller agrees to sell, [_ _ _ _[ ] produced by the Source Mine from existing reserves, as not consent identified on Schedule 1.2 hereto, currently estimated to be not less than [_ _ _ _][ ] tons, and from all additional reserves assigned to Seller for purposes of this Agreement by mutual consent of the parties (collectively, the "Reserve Commitment"), at the following annual rates (the "Annual Base Amount"): CALENDAR YEAR ANNUAL BASE AMOUNT 2005 Actual production from the Source Mine, estimated to be [_ _ _ _[ ] tons 2006 Actual production from the Source Mine, estimated to be [_ _ _ _[ ] tons, but at a production rate of not less than <PAGE> 2006 * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. [_ _ _ _[ ] tons/month by October 1, 2006 2007-Expiration Date [_ _ _ _[ ] tons Buyer shall have the option, upon not less than six (6) months' prior notice to Seller, to increase the Annual Base Amount (for calendar years occurring after 2005) by [_ _ _ _[ ] tons (prorated such to hereunder Seller is shall diverting or expiration eighteen in the case of the portion of the calendar year remaining after such increase takes effect) so as to increase the Annual Base Amount to [_ _ _ _][ ] tons, subject to availability of equipment at the Source Mine required by Seller to produce coal to be sold hereunder in such quantities ("Increased Production Equipment"). If Seller is unable to produce the increased Annual Base Amount due to unavailability of the Increased Production Equipment, Seller shall use commercially reasonable efforts to obtain the Increased Production Equipment (including, without limitation, by diverting equipment from other mines to the extent not currently in use or anticipated to be used in such other mines) prior to the expiration of such six month period, and in any event shall obtain the Increased Production Equipment prior to the expiration of eighteen (18) months after receipt of Buyer's noticeBase shall Agent. Once the Annual Base Amount is increased pursuant to this Section 1.2, it may not be decreased without the mutual consent of the parties. Seller shall not change the source of the coal supplied hereunder (the "Base Source Coal") without the prior written consent of Buyer's Agent. Seller represents to Buyer that the current assigned in reserves of the Source Mine comprising the Reserve Commitment are as set forth in Schedule 1.2 hereto. Seller shall not reduce the assigned reserves of the Source Mine below that reflected in Schedule 1.2 without the prior written consent of Buyer's Agent.the

TERM AND QUANTITY. 1.1 The term of this Agreement (the "Term") shall be the period commencing on the date hereof and ending on the date of exhaustion of the Reserve Commitment (as hereinafter defined) (the "Expiration Date"). 1.2 During the Term, Buyer agrees to buy, and Seller agrees to sell, [_ _ _ ___________] produced by the Source Mine from existing reserves, as identified on Schedule 1.2 hereto, currently estimated to be not less than [_ _ _ _]__________] tons, and from all additional reserves assigned to Seller for purposes of this Agreement by mutual consent of the parties (collectively, the "Reserve Commitment"), at the following annual rates (the "Annual Base Amount"): CALENDAR YEAR ANNUAL BASE AMOUNT 2005 Actual production from the Source Mine, estimated to be [_ _ _ ___________] tons 2006 Actual production from the Source Mine, estimated to be [_ _ _ ___________] tons, but at a production rate of not less than * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. [_ _ _ ___________] tons/month by October 1, 2006 2007-Expiration Date [_ _ _ ___________] tons Buyer shall have the option, upon not less than six (6) months' prior notice to Seller, to increase the Annual Base Amount (for calendar years occurring after 2005) by [_ _ _ ___________] tons (prorated in the case of the portion of the calendar year remaining after such increase takes effect) so as to increase the Annual Base Amount to [_ _ _ _]__________] tons, subject to availability of equipment at the Source Mine required by Seller to produce coal to be sold hereunder in such quantities ("Increased Production Equipment"). If Seller is unable to produce the increased Annual Base Amount due to unavailability of the Increased Production Equipment, Seller shall use commercially reasonable efforts to obtain the Increased Production Equipment (including, without limitation, by diverting equipment from other mines to the extent not currently in use or anticipated to be used in such other mines) prior to the expiration of such six month period, and in any event shall obtain the Increased Production Equipment prior to the expiration of eighteen (18) months after receipt of Buyer's notice. Once the Annual Base Amount is increased pursuant to this Section 1.2, it may not be decreased without the mutual consent of the parties. Seller shall not change the source of the coal supplied hereunder (the "Base Source Coal") without the prior written consent of Buyer's Agent. Seller represents to Buyer that the current assigned reserves of the Source Mine comprising the Reserve Commitment are as set forth in Schedule 1.2 hereto. Seller shall not reduce the assigned reserves of the Source Mine below that reflected in Schedule 1.2 without the prior written consent of Buyer's Agent. 1.3 The Sycamore Adjusted Base Amount remaining to be delivered to Buyer under the Sycamore Agreement from the date hereof through April 30, 2006, currently scheduled in the monthly quantities set forth in Schedule 1.3 hereto (the "Sycamore Monthly Scheduled Amounts"), shall continue to be delivered to the Station until the tonnage commitment under the Sycamore Agreement has been satisfied. If Sycamore fails to deliver the Sycamore Monthly Scheduled Amounts under the Sycamore Agreement (for any reason other than force majeure or a default by Buyer thereunder) for more than three months (consecutive or otherwise) in any six month period, or if the Sycamore Agreement is terminated for any reason other than Buyer's unexcused failure to accept deliveries of the Sycamore Adjusted Base Amount thereunder (including, without limitation, by reason of the rejection of such contract by Anker Energy or Sycamore (or any trustee on its or their behalf) in any case or proceeding commenced by or against Anker Energy or Sycamore under the United States Bankruptcy Code, 11 U.S.C. Section 101 et seq.), Buyer, at its option, may make up any deficiency in deliveries of the Sycamore Adjusted Base Amount under this Agreement. In such event, the applicable monthly quantities to be delivered by Seller hereunder in any month shall be determined based on the sum of the Sycamore Monthly Scheduled Amount for such month and the monthly scheduled quantity of coal to be delivered to Buyer for such month established pursuant to Section 2.1 of this Agreement, and Buyer will credit any tonnage (the "Sycamore Makeup Amount") delivered by Seller hereunder in any month up to the Sycamore Monthly Scheduled Amount for such month against Sycamore's tonnage commitment under the Sycamore Agreement, with any tonnage delivered by Seller hereunder in excess of the Sycamore Monthly Scheduled Amount being credited to the monthly scheduled quantity of coal to be delivered to Buyer for such month established pursuant to Section 2.1. The Sycamore Makeup Amount delivered by Seller hereunder shall be invoiced and paid for by Buyer in accordance with Section 7.4 at the applicable base price (expressed in cents/MMBtu) at the time of delivery set forth in the Sycamore Agreement (or, in the case of deliveries after April 30, 2006, at the applicable base price in effect under the Sycamore Agreement on April 30, 2006). 1.4 If, during any calendar year, Seller fails to deliver, or Buyer fails to accept, other than by reason of force majeure, the Annual Base Amount to be delivered during such calendar year, the party not at fault shall have the right to schedule the shortfall for delivery in the following calendar year. Such party shall provide written notice to the other party within thirty (30) days after the end of such calendar year of the shortfall tonnage it elects to deliver or accept in such following calendar year; provided, however, that in no event shall Seller be obligated to produce and deliver, nor shall Buyer be obligated to accept, aggregate deliveries of coal as a result of such rescheduled deliveries in excess of the applicable limitation set forth in Section 2.1.