EXHIBIT
10.2
INVESTOR RIGHTS
AGREEMENT
This Investor
Rights Agreement (this “ Agreement ”) is made
and entered into effective as of January 4, 2007, by and among
Adena Minerals, LLC, a Delaware limited liability company (the
“Investor”), NRP (GP) LP, a Delaware limited
partnership (the “ General Partner ”), and GP
Natural Resource Partners LLC, a Delaware limited liability (the
“ Company ”) and Robertson Coal Management LLC,
a Delaware limited liability company (the “ Sole
Member ,” and collectively with the General Partner and
the Company, the “ Partnership Parties ”). The
above-named entities are sometimes referred to in this Agreement
each as a “ Party ” and collectively as the
“ Parties .”
A. The
Company is the general partner of the General Partner.
B. In
connection with the execution and delivery of this Agreement the
Investor has entered into an agreement to acquire 3,913,080 Common
Units and 541,956 Class B Units of Natural Resource Partners
L.P., a Delaware limited partnership (the “
Partnership ”), (each as defined in that certain
Second Amended and Restated Agreement of Limited Partnership of the
Partnership dated of even date herewith) and an aggregate 22%
partner interest in the General Partner (pursuant to
that
certain Contribution Agreement
dated as of December 14, 2006 (the “ Contribution
Agreement ”) by and among the Partnership, the General
Partner, NRP (Operating) LLC, a wholly owned subsidiary of the
Partnership, Adena and Foresight Reserves LP) (such Common Units,
Class B Units and limited partner interests, collectively, the
“ Transaction Interests ”).
C. As a
condition to the Investor’s acquisition of the Transaction
Interests, the Partnership Parties have agreed to grant the
Investor certain management and investor rights as more fully set
forth herein and the Investor has agreed to be bound by the
obligations set forth herein.
NOW, THEREFORE, in
consideration of the foregoing recitals, the mutual promises
hereinafter set forth, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
1.
REPRESENTATIONS AND WARRANTIES .
1.1
Representations and Warranties by the Investor : The
Investor hereby represents and warrants to the Partnership Parties
as follows:
(a)
Authorization and Execution . (i) The Investor has all
requisite limited liability company power and authority to execute
and deliver this Agreement and to perform its obligations under
this Agreement; (ii) the execution, delivery and performance
of this Agreement by the Investor and the consummation of the
transactions contemplated hereby have been duly authorized by all
requisite limited liability company action on the part of the
Investor; (iii) this Agreement has been duly executed and
delivered by the Investor and constitutes a legal, valid
and binding
obligation of the Investor, enforceable against it in accordance
with its terms, subject as to enforceability, to bankruptcy,
insolvency, reorganization, moratorium and other laws of general
applicability relating to or affecting creditors’ rights and
to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law);
and (iv) no governmental consent, approval, authorization,
notification, license or clearance, and no filing or registration
by the Investor with any governmental or regulatory authority, is
required in order to permit the Investor to perform its obligations
under this Agreement, except for such as have been
obtained.
(b)
Non-Contravention . The execution and delivery by the
Investor of this Agreement, the performance by the Investor of its
obligations hereunder, the consummation of the transactions
contemplated hereby by the Investor and compliance by the Investor
with the provisions hereof do not conflict with or result in any
violation of, or default (with or without notice or lapse of time,
or both) under, or give rise to right of termination, cancellation
or acceleration of any obligation or to the loss of a benefit
under, or give rise to a right of purchase under, result in the
creation of any lien on any of the assets of the Investor or
otherwise result in a detriment to the Investor under, (i) the
certificate of formation or limited liability company operating
agreement of the Investor (each as amended to date), (ii) any
loan or credit agreement, note, bond, mortgage, indenture, lease or
other agreement, instrument, permit, concession, franchise or
license to which the Investor is a party or by which the Investor
or any of its properties or assets is bound, (iii) any joint
venture or ownership arrangement or (iv) any judgment, decree,
order, writ, statute, rule or regulation applicable to the Investor
or any of its properties or assets that would materially and
adversely affect the business, assets, liabilities, financial
condition, operations or prospects of the Investor.
1.2
Representations and Warranties by the Partnership Parties .
Each of the Partnership Parties represents and warrants to the
Investor as follows:
(a)
Authorization and Execution . (i) Each Partnership
Party has all requisite limited partnership or limited liability
company power and authority, as the case may be, to execute and
deliver this Agreement and to perform its obligations under this
Agreement; (ii) the execution, delivery and performance of
this Agreement by each Partnership Party and the consummation of
the transactions contemplated hereby have been duly authorized by
all requisite limited partnership or limited liability company
action, as the case may be, on the part of such Partnership Party;
(iii) this Agreement has been duly executed and delivered by each
Partnership Party and constitutes a legal, valid and binding
obligation of such Partnership Party, enforceable against it in
accordance with its terms, subject as to enforceability, to
bankruptcy, insolvency, reorganization, moratorium and other laws
of general applicability relating to or affecting creditors’
rights and to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at
law); and (iv) no governmental consent, approval,
authorization, notification, license or clearance, and no filing or
registration by any Partnership Party with any governmental or
regulatory authority, is required in order to permit any
Partnership Party to perform its obligations under this Agreement,
except for such as have been obtained.
2
(b)
Non-Contravention . The execution and delivery by each
Partnership Party of this Agreement, the performance by each
Partnership Party of its obligations hereunder, the consummation of
the transactions contemplated hereby by each Partnership Party and
compliance by each Partnership Party with the provisions hereof do
not conflict with or result in any violation of, or default (with
or without notice or lapse of time, or both) under, or give rise to
right of termination, cancellation or acceleration of any
obligation or to the loss of a benefit under, or give rise to a
right of purchase under, result in the creation of any lien on any
of the assets of any Partnership Party or otherwise result in a
detriment to any Partnership Party under, (i) the certificate
of limited partnership, certificate of formation, agreement of
limited partnership or limited liability company operating
agreement of any Partnership Party (each as amended to date),
(ii) any loan or credit agreement, note, bond, mortgage,
indenture, lease or other agreement, instrument, permit,
concession, franchise or license to which any Partnership Party is
a party or by which any Partnership Party or any of its properties
or assets is bound, (iii) any joint venture or ownership
arrangement or (iv) any judgment, decree, order, writ,
statute, rule or regulation applicable to any Partnership Party or
any of its properties or assets that would materially and adversely
affect the business, assets, liabilities, financial condition,
operations or prospects of such Partnership Party.
2.1 The Investor
shall be entitled to designate two directors of the board of
directors (the “ Board ”) of the Company
(including for purposes of this Section 2 any Affiliate of the
Company that serves as the successor general partner of the General
Partner) (the “ Investor Directors ”), one of
whom shall be an “Independent Director” as such term is
defined in the Company’s Fourth Amended and Restated Limited
Liability Company Agreement, as such agreement may be amended from
time to time (the “ Operating Agreement ”). The
Independent Director shall be subject to the approval of
Compensation, Nominating and Governance Committee (the “
Nominating Committee ”) of the Board, which approval
shall not be unreasonably withheld, delayed or conditioned. On or
before April 4, 2007, the Investor shall provide the Company
with a notice (the “ Director Notice ”)
identifying the Independent Director. The Sole Member shall
cooperate with respect to electing the directors designated by the
Investor, including nominating the Investor Directors for election
and voting in favor of the Investor Directors designated by the
Investor (who, with respect to the Independent Director, shall be
the individual designated in the Director Notice, unless
otherwise
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