INVESTOR RIGHTS AGREEMENTInvestors Rights Agreement |
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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.”
R E C I T A L S
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.
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(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. MANAGEMENT RIGHTS.
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
indicated in a subsequent notice delivered by the Investor to the Company and
who shall be subject to the approval of the Nominating Committee). The
Independent Director shall commence his or her service on the Board on or
before the tenth business day following the Company’s receipt of the
Director Notice or on such later date as specified by the Investor therein.
Each Investor Director shall hold office until his or her successor is elected
pursuant to the terms of this Section 2 or until his or her earlier death,
resignation or removal.
2.2
The initial term of each Investor Director shall expire at the next annual
meeting of the members of the Company or an earlier special meeting of the
members of the Company called for the purpose of electing Directors to the
Board. At any such meeting (the “Initial Meeting”), and at
all similar, subsequent meetings of the members of the Company held for the
purpose of electing directors to the Board, the Sole Member shall cooperate
with respect to
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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 shall be the individuals designated herein and in the Director
Notice, unless otherwise indicated in a subsequent notice delivered by the
Investor to the Company). At the Initial Meeting and all such meetings held
thereafter prior to an Investor Director Resignation Event (as defined below),
the Investor Directors shall be elected to serve annual terms expiring on the
date of the annual meeting of members of the Company following such election.
2.3
The Investor may remove an Investor Director (other than an Independent
Director) at any time, with or without cause, and the Sole Member shall
cooperate with respect to such removal, including voting in favor of such
removal. Independent Directors may only be removed as provided in the Operating
Agreement. In the event of the death, resignation or removal of an Investor
Director, the Investor may designate a replacement Investor Director, who shall
be subject to the approval of the Nominating Committee in the case of an
Independent Director.
2.4
The Investor Directors shall serve on the Board in accordance with the terms of
the Operating Agreement and shall be entitled to all rights and protections
provided thereunder to directors generally. The Company and the Sole Member
shall amend Section 7 of the Operating Agreement to reflect the
Investor’s rights to designate the Investor Directors and as otherwise
necessary to reflect the provisions of Section 2 of this Agreement.
2.5
At the election of the Investor, the Board shall appoint the Investor Director
who is not the Independent Director to serve as a voting member of any
executive (or similar) committee as well as any other committee of the Board
for which such person meets the qualifications, the Board shall appoint the
Independent Director to serve as a voting member of at least one committee of
the Board for which such person meets the qualifications, which committee shall
be selected by the Board, and the Sole Member shall cooperate with respect to
causing such appointments.
2.6
The Investor’s right to appoint the Investor Directors shall continue so
long as (a) the Put Right or the Call Right (each as defined in the Third
Amended and Restated Limited Partnership Agreement of the General Partner of
even date herewith (as further amended, modified or supplemented from time to
time after the date hereof, the “General Partner Partnership Agreement”))
has not been exercised by the Investor or the General Partner and (b) the
Investor beneficially owns (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended) either (i) an amount of limited partner
interests in the Partnership comprising more than 5% of the aggregate limited
partner interest in the Partnership then issued and outstanding; or
(ii) an amount of limited partner interests in the General Partner
comprising more than 5% of the limited partner interests in the General Partner
then issued and outstanding (the failure to meet the ownership test in this
clause (ii) is the “Amendment Trigger”). Upon the
earlier to occur of (x) the exercise of the Put Right or the Call Right
(each as defined in the General Partner Partnership Agreement) by either the
Investor sending a “Put Notice” or the General Partner sending a
“Call Notice” (each as defined in the General Partner Partnership
Agreement) or (y) such time that the Investor’s holdings of limited
partner interests in the Partnership and limited partner interests in the
General Partner satisfy neither of the two
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conditions of clause
(b) above (the occurrence of the events in clause (x) or clause (y),
the “Investor Director Resignation Event”), the Sole Member
may immediately vote to remove the Investor Directors if they have not
previously resigned from the Board, and all of the Investor’s rights
under this Section 2 shall terminate.
2.7
Until the Amendment Trigger has occurred, no amendment to the Fourth Amended
and Restated Limited Liability Company Agreement of the Company of even date
herewith (as amended, modified or supplemented from time to time after the date
hereof, the “Company LLC Agreement”) that adversely affects the
economic rights of the Investor in any respect, or the other rights of the
Investor, in any material respect, under the Company LLC Agreement (including a
dissolution of the Company), shall be effective without the written consent of
the Investor (in addition to all other persons required to consent pursuant to
Section 13.2(a) of the Company LLC Agreement).
2.8
So long as the Investor has the right to appoint Investor Directors pursuant to
this Section 2, the Investor shall have the right to have one observer
(the “Observer”) attend each meeting of the Board. The
Observer shall execute a confidentiality agreement substantially in the form
attached hereto as Exhibit A prior to the first Board meeting
attended by the Observer, and unless the Investor and the Company otherwise
agree (such agreement not to be unreasonably withheld), the Observer shall be
Chris Cline. The Observer shall have no voting rights as a member of the Board
but shall be entitled to receive copies of all information distributed to the
Board and to attend all meetings of the Board.
2.9 So long as the Investor’s holdings of limited partner interests in the Partnership or limited partner interests in the General Partner satisfy either of the conditions in Section 2.6(b), the sale or other d






