NOTE: This is in no way a faction proposal, but is an idea for a region controlled by "independents" and maybe a unique AOR unit or two.
In the year 1000, the Bagratid Armenian kingdom was getting more and more decentralized from Ani, and a noble known as John-Senecherib (Hovhannes-Senekerim) was given a kingdom comprising the provinces of Utik and Artsakh. John-Senecherib appears to have been a member of the old Siuni noble house (which makes sense, since they had owned land in and around those provinces for centuries).
When Ani was gifted to the Roman Empire in 1045 by traitorous nobles, the Romans were soon overrun by Seljuk forces. Artsakh and Utik, in a better defensive position and pretty much out-of-the-way of the main cities of Ani and Dvin, had their lowlands overrun, but the local dynasty survived by hiding in mountain fortresses.
From 1142-1182 (or after), a local prince named Hasan of Haterk fought against foreign incursions constantly. The principality then allied with the Georgians and subsequently the Mongols, who defeated the Georgians (they used the fact that they were Armenian, and that the Mongols had an agreement with the Cilician Armenians already, to their advantage often). The most successful leader was Hasan-Jalal (his successors were known as the Hasan-Jalalians) who reigned from 1214-1261.
Also note, despite what the map below says, Ganja was NOT part of Khachen, it was under the Atabegs of Azerbaijan.
Another note, Hasan-Jalal was a member of the Eranshahik (or Arranshahik) noble house.
EDIT: The capital of this principality was in fact the town of Khachen. It was dotted with several easily defensible fortresses.
http://www.gandzasar.com/principality-of-khachen.htm
http://en.wikipedia.org/wiki/House_of_Hasan-Jalalyan
Depictions of Cavalry, 12th-13th century
Royal Banner
Military Banner
You can see the relative location of Khachen (ruled by a branch of Siunik) in this 10th century map
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