UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 23, 2013

 

 

NATURAL RESOURCE PARTNERS L.P.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-31465   35-2164875

(State or other jurisdiction

of incorporation or organization)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

601 Jefferson, Suite 3600

Houston, Texas 77002

(Address of principal executive office) (Zip Code)

(713) 751-7507

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01. Entry into a Material Definitive Agreement.

Trona Purchase Agreement

On January 23, 2013, NRP Trona LLC (“NRP Trona”), a Delaware limited liability company and a wholly owned subsidiary of NRP (Operating) LLC (“NRP Operating” and with NRP Trona the “NRP Parties”), a Delaware limited liability company and a wholly owned subsidiary of Natural Resource Partners L.P. (the “Partnership”), completed the acquisition (the “Trona Acquisition”) of (i) certain general partner interests in OCI Wyoming L.P. and (ii) 20% of the common shares and all of the preferred shares of OCI Wyoming Co. (the “Acquired Interests”) pursuant to a Purchase Agreement (the “Trona Purchase Agreement”) by and among the NRP Parties and Anadarko Holding Company and Big Island Trona Company (the “Sellers”). Under the terms of the Trona Purchase Agreement, the NRP Parties purchased the Acquired Interests for $292.5 million, after customary closing adjustments to a purchase price of $310 million as provided in the Trona Purchase Agreement. The Trona Purchase Agreement also contains an earn-out provision that would require NRP Trona to pay the Sellers up to $50 million, on a net present value basis, over a three-year period if OCI Wyoming L.P. achieves specific revenue targets during that period.

A copy of the Trona Purchase Agreement is filed as Exhibit 2.1 to this Current Report on Form 8-K and is incorporated by reference hereby. The description of the Trona Purchase Agreement in this Current Report on Form 8-K is a summary and is qualified in its entirety by reference to the complete text of such agreement.

PIPE Purchase Agreement

On January 23, 2013, the Partnership completed a private placement (the “Private Placement”) of common units representing limited partner interests in the Partnership (the “Common Units”) pursuant to a Common Unit Purchase Agreement between the Partnership and the purchasers named therein. The Partnership sold approximately 3.8 million Common Units in the Private Placement at a purchase price of $19.8173 per Common Unit, resulting in $75 million in proceeds to the Partnership. The purchase price of the Common Units sold was calculated based upon the volume-weighted average closing price of the Partnership’s Common Units (as reported by the New York Stock Exchange) for the 15 trading days prior to and including January 22, 2013. Such Common Units were sold in reliance upon an exemption from the registration requirements of the Securities Act of 1933, pursuant to Section 4(2) thereof. In connection with the issuance of common units, NRP (GP) LP contributed $1.5 million to the Partnership to retain its 2% interest in the Partnership.

A copy of the Common Unit Purchase Agreement is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herby. The description of the Common Unit Purchase Agreement in this Current Report on Form 8-K is a summary and is qualified in its entirety by reference to the complete text of such agreement.

Registration Rights Agreement

On January 23, 2013, in connection with the closing of the Private Placement, the Partnership entered into a registration rights agreement with the purchasers in the Private Placement (the “Registration Rights Agreement”). Pursuant to the Registration Rights Agreement, the Partnership is required to file a shelf registration statement to register the offer and sale of Common Units issued in the Private Placement no later than 90 days following the closing date of the Private Placement, and use its commercially reasonable efforts to cause the registration statement to become effective as soon as practicable thereafter.

A copy of the Registration Rights Agreement is filed as Exhibit 4.1 to this Current Report on Form 8-K and is incorporated by reference herby. The description of the Registration Rights Agreement in this Current Report on Form 8-K is a summary and is qualified in its entirety by reference to the complete text of such agreement.

Term Loan

In connection with the closing of the Trona Acquisition, on January 23, 2013, NRP Operating entered into a 3-year, $200 million unsecured term loan agreement with Citibank, N.A., as administrative agent, Citigroup Global Markets, Inc., Wells Fargo Securities, LLC and Compass Bank, as joint lead arrangers and joint bookrunners, and Wells Fargo Bank, National Association and Compass Bank, as co-syndication agents (the “Term Loan Agreement”). The proceeds of the Term Loan Agreement will be used (i) to finance in part the Trona Acquisition and (ii) to pay the fees, expenses and other transaction costs of the transactions contemplated by the Term Loan Agreement. The Term Loan Agreement is guaranteed by the material subsidiaries of NRP Operating. The Term Loan Agreement has covenants and other terms that are substantially identical to those in NRP Operating’s existing 5-year, $300 million revolving credit facility.

 

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A copy of the Term Loan Agreement is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated by reference herby. The description of the Term Loan Agreement in this Current Report on Form 8-K is a summary and is qualified in its entirety by reference to the complete text of such agreement.

Credit Agreement Amendment

On January 23, 2013, in connection with the Term Loan Agreement and the Trona Acquisition, NRP Operating entered into an amendment to its 5-year, $300 million revolving credit facility (the “Amendment”) with Citibank, N.A., as administrative agent. The amendment, among other things, amends the indebtedness covenant to permit the incurrence of indebtedness under the Term Loan Agreement and the payment of the Contingent Purchase Price Obligation Payment (as defined in the Trona Purchase Agreement) and amends the investment covenant to permit the Trona Acquisition.

A copy of the Amendment is filed as Exhibit 10.3 to this Current Report on Form 8-K and is incorporated by reference herby. The description of the Amendment in this Current Report on Form 8-K is a summary and is qualified in its entirety by reference to the complete text of such agreement.

 

Item 2.01. Completion of Acquisition or Disposition of Assets.

The information set forth under Item 1.01 above under the heading “Trona Purchase Agreement” is incorporated herein by reference.

 

Item 2.03. Creation of a Direct Financial Obligation.

The information set forth under Item 1.01 above under the heading “Term Loan” is incorporated herein by reference.

 

Item 3.02. Unregistered Sales of Equity Securities.

The information set forth under Item 1.01 above under the heading “PIPE Purchase Agreement” is incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits .

 

  * 2.1       Purchase Agreement, dated as of January 23, 2013, by and among Anadarko Holding Company, Big Island Trona Company, NRP Trona LLC and NRP (Operating) LLC.
  4.1       Registration Rights Agreement, dated as of January 23, 2013, by and among Natural Resource Partners L.P. and the Investors named therein.
  10.1       Common Unit Purchase Agreement, dated January 23, 2013, by and among Natural Resource Partners, L.P. and the purchasers named therein.
  10.2       Term Loan Agreement, dated as of January 23, 2013, by and among Natural Resource Partners, L.P., Citibank, N.A., as administrative agent, Citigroup Global Markets, Inc., Wells Fargo Securities, LLC and Compass Bank, as joint lead arrangers and joint bookrunners and Wells Fargo Bank, National Association and Compass Bank, as co-syndication agents.
  10.3       First Amendment to the Second Amended and Restated Credit Agreement, dated as of January 23, 2013.

 

* Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Partnership agrees to furnish supplementally a copy of the omitted schedules to the SEC upon request.

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  NATURAL RESOURCE PARTNERS L.P.
  By:  

NRP (GP) LP,

Its General Partner

  By:  

GP NATURAL RESOURCE PARTNERS, LLC

Its General Partner

Dated: January 25, 2013

  By:   /s/ Wyatt L. Hogan
   

Name: Wyatt L. Hogan

Title: Vice President and General Counsel

 

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EXHIBIT INDEX

 

Exhibit

Number

    

Description

  * 2.1       Purchase Agreement, dated as of January 23, 2013, by and among Anadarko Holding Company, Big Island Trona Company, NRP Trona LLC and NRP (Operating) LLC.
  4.1       Registration Rights Agreement, dated as of January 23, 2013, by and among Natural Resource Partners L.P. and the Investors named therein.
  10.1       Common Unit Purchase Agreement, dated January 23, 2013, by and among Natural Resource Partners, L.P. and the purchasers named therein.
  10.2       Term Loan Agreement, dated as of January 23, 2013, by and among Natural Resource Partners, L.P., Citibank, N.A., as administrative agent, Citigroup Global Markets, Inc., Wells Fargo Securities, LLC and Compass Bank, as joint lead arrangers and joint bookrunners and Wells Fargo Bank, National Association and Compass Bank, as co-syndication agents.
  10.3       First Amendment to the Second Amended and Restated Credit Agreement, dated as of January 23, 2013.

 

* Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Partnership agrees to furnish supplementally a copy of the omitted schedules to the SEC upon request.

 

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EXHIBIT 2.1

PURCHASE AGREEMENT

BY AND AMONG

ANADARKO HOLDING COMPANY,

BIG ISLAND TRONA COMPANY,

NRP TRONA LLC,

AND

NRP (OPERATING) LLC

DATED AS OF January 23, 2013


TABLE OF CONTENTS

 

         Page  

ARTICLE I DEFINITIONS

     1   

Section 1.1

  Definitions      1   

Section 1.2

  Construction      8   

ARTICLE II PURCHASE AND SALE

     8   

Section 2.1

  Purchase and Sale      8   

Section 2.2

  Purchase Price Adjustment      9   

Section 2.3

  Closing      9   

Section 2.4

  Withholding      9   

Section 2.5

  Purchase Price Allocation      9   

Section 2.6

  Contingent Purchase Price Obligation      10   

ARTICLE III REPRESENTATIONS AND WARRANTIES REGARDING SELLERS AND THE COMPANIES

     13   

Section 3.1

  Organization      13   

Section 3.2

  Authority; Enforceability      14   

Section 3.3

  No Conflicts; Consents and Approvals      14   

Section 3.4

  Capitalization; Ownership      15   

Section 3.5

  Financial Statements      16   

Section 3.6

  No Undisclosed Liabilities      16   

Section 3.7

  Absence of Certain Changes      16   

Section 3.8

  Material Contracts      18   

Section 3.9

  Litigation      18   

Section 3.10

  Compliance with Laws; Permits      18   

Section 3.11

  Real Property      19   

Section 3.12

  Personal Property      19   

Section 3.13

  Customers, Suppliers Vendors      20   

Section 3.14

  Insurance      20   

Section 3.15

  Books and Records      20   

Section 3.16

  Certain Payments      20   

Section 3.17

  Employee Matters      20   

Section 3.18

  Environmental Matters      21   

Section 3.19

  Taxes      22   

Section 3.20

  Assets Necessary to the Business      23   

Section 3.21

  Intellectual Property      24   

Section 3.22

  Brokers’ Fees      24   

Section 3.23

  Waiver of Other Representations      24   

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER PARTIES

     24   

Section 4.1

  Organization      25   

Section 4.2

  Authorization; Enforceability      25   

 

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Table of Contents

(Continued)

 

       Page  

Section 4.3 No Conflicts; Consents and Approvals

     25   

Section 4.4 Investment Representations

     26   

Section 4.5 Litigation

     26   

Section 4.6 Financing

     26   

Section 4.7 Brokers’ Fees

     26   

Section 4.8 Investigation; No Other Representations

     27   

ARTICLE V COVENANTS

     27   

Section 5.1 Access to Information

     27   

Section 5.2 Efforts; Further Assurances

     28   

Section 5.3 Public Announcements

     28   

Section 5.4 Parent Guarantee

     28   

ARTICLE VI CLOSING DELIVERIES

     29   

Section 6.1 Deliveries By Sellers at Closing

     29   

Section 6.2 Deliveries by Buyer at Closing

     30   

ARTICLE VII TAX MATTERS

     30   

Section 7.1 Transfer Taxes

     30   

Section 7.2 Cooperation

     30   

ARTICLE VIII INDEMNIFICATION

     30   

Section 8.1 Indemnities of the Sellers

     30   

Section 8.2 Indemnities of Buyer Parties

     32   

Section 8.3 Claim Procedures

     33   

Section 8.4 Recovery

     33   

Section 8.5 Survival

     33   

Section 8.6 Control of Third-Party Claims

     33   

Section 8.7 Express Negligence

     34   

Section 8.8 Exclusive Remedy

     35   

Section 8.9 Non-Recourse

     35   

Section 8.10 Characterization of Indemnification Payments

     35   

ARTICLE IX MISCELLANEOUS

     35   

Section 9.1 Notices

     35   

Section 9.2 Amendments and Waivers

     36   

Section 9.3 Interim Capital Contributions and Distributions

     36   

Section 9.4 Expenses

     37   

Section 9.5 Liability

     37   

Section 9.6 Successors and Assigns; Assignment

     37   

Section 9.7 Governing Law

     37   

Section 9.8 Consent to Venue and Jurisdiction; Waiver of Jury Trial

     37   

 

ii


Table of Contents

(Continued)

 

       Page  

Section 9.9 Counterparts; Effectiveness; Third-Party Beneficiaries

     38   

Section 9.10 Entire Agreement

     38   

Section 9.11 Severability

     38   

Section 9.12 Disclosure Schedules

     38   

Section 9.13 Specific Performance

     38   

Section 9.14 No Presumption Against Drafting Party

     39   

EXHIBITS

Exhibit A: Settlement Statement

Exhibit B: Purchase Price Allocation

Exhibit C: Contingent Purchase Price Obligation Payment Buy-Out Payment Examples

 

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PURCHASE AGREEMENT

THIS PURCHASE AGREEMENT (this “ Agreement ”) is entered into as of January 23, 2013 by and among Anadarko Holding Company, a Utah corporation (“ AHC ”), Big Island Trona Company, a Delaware corporation (“ Bitco ”) (AHC and Bitco collectively, “ Sellers ”), NRP Trona LLC, a Delaware limited liability company (“ Buyer ”), and NRP (Operating) LLC, a Delaware limited liability company (“ Parent ”) (Buyer and Parent, collectively, the “ Buyer Parties ”). Each of the parties to this Agreement is sometimes referred to individually in this Agreement as a “ Party ” and all of the parties to this Agreement are sometimes collectively referred to in this Agreement as the “ Parties .”

W I T N E S S E T H :

WHEREAS, AHC owns (a) 8,160 of the shares of common stock, par value $5.00 per share, and (b) 23,200 shares of the cumulative preferred stock, par value $5.00 per share, (collectively, the “ OCI Wyoming Co. Interests ”) of OCI Wyoming Co., a Delaware corporation (“ OCI Wyoming Co. ”); and

WHEREAS, OCI Wyoming Co. owns a 1% limited partner interest (the “ Limited Partner Interest ”) in OCI Wyoming, L.P., a Delaware limited partnership (“ OCI Wyoming L.P. ” and, together with OCI Wyoming Co., the “ Companies ”); and

WHEREAS, Bitco owns a 48.51% general partner interest (the “ OCI Wyoming L.P. Interest ” and, together with the OCI Wyoming Co. Interests, the “ Purchased Interests ”) in OCI Wyoming L.P.; and

WHEREAS, subject to the terms and conditions set forth in this Agreement, Buyer desires to acquire from Sellers, and Sellers desire to sell to Buyer, all of the Purchased Interests.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions.

(a) As used herein, the following terms have the following meanings:

Affiliate ” means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by or Under Common Control with such Person. After the Closing, the Companies shall not be considered Affiliates of Sellers.

Balance Sheet Date ” means December 31, 2011.

 


Business Day ” means a day, other than Saturday, Sunday or other day on which commercial banks in Houston, Texas are authorized or required by Law to close.

Claim ” means any demand, claim, action, legal proceeding (whether at law or in equity) or arbitration.

Code ” means the United States Internal Revenue Code of 1986, as amended.

Confidential Information ” means all information related to the Companies, including all reports, analysis, notes or other information that contain any such information. Confidential Information shall not include information that (i) is or becomes available to the public other than as a result of a disclosure by any Seller, any Affiliate of a Seller, or any of their Representatives in violation of this Agreement or other legally binding restriction on disclosure, (ii) becomes available to any Sellers or any of its Representatives from a source other than Buyer or its Representatives provided that, to the Sellers’ Knowledge, the source of such information was not bound by a confidentiality agreement with Buyer with respect to such information or (iii) was or is developed or derived without the aid, application or use of Confidential Information.

Confidentiality Agreements ” means, collectively, the Confidentiality Agreement, dated as of February 7, 2012, by and between Anadarko Petroleum Corporation and Quintana Minerals Corporation and the Confidentiality Agreement, dated as of June 8, 2012, by and between OCI Enterprises, Inc. and Quintana Minerals Corporation.

Contract ” means any note, bond, mortgage, indenture, deed of trust, license, lease, agreement, contract or other legally binding instrument or contractual obligation.

Control ,” including the correlative terms “Controlling,” “Controlled by” and “Under Common Control with” means possession, directly or indirectly (through one or more intermediaries), of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person; provided that for the purposes of Section 2.6(i) only, “Control of the Companies” means the ownership, directly or indirectly, of more than 50% of the general partnership interests in OCI Wyoming L.P. or the right to designate a majority of the members of the Partnership Committee (as such term is defined in the Partnership Agreement).

Damages ” means any and all damages, losses, fines, settlement payments, awards, penalties, interest and expenses (including reasonable attorneys’ fees), but in all cases excluding consequential, special, punitive or exemplary damages (except with respect to any claims by an unaffiliated third party).

Disclosure Schedules ” means the disclosure schedule dated the date of this Agreement regarding this Agreement that has been provided by Sellers to Buyer at the execution and delivery of this Agreement.

Effective Time ” means 12:00 a.m., Central Time, on August 1, 2012.

 

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Equity Interests ” means capital stock, partnership or membership interests or units (whether general or limited), and any other interest or participation that confers on a Person the right to receive a share of the profits and losses of the issuing entity.

Environmental Laws ” means any Law relating to the protection of the environment, natural resources, wildlife, human health (to the extent relating to exposure to Hazardous Substances) or employee safety and health.

ERISA ” means the Employee Retirement Income Security Act of 1974, as amended.

Exchange Act ” means the Securities Exchange Act of 1934, as amended.

FLSA ” means the Fair Labor Standards Act of 1938, as amended.

GAAP ” means generally accepted accounting principles in the United States.

Governmental Authority ” means any foreign, federal, state or local governmental authority, department, court or agency, including any political subdivision thereof, and any arbitrating body, commission or quasi-governmental authority or self-regulating organization of competent authority exercising or enlisted to exercise similar power or authority.

Hazardous Substances ” means any substance, whether solid, liquid or gaseous, that is listed, defined or regulated as a “hazardous material,” “hazardous waste,” “solid waste,” “hazardous substance,” “toxic substance,” “pollutant,” or “contaminant” by any applicable Environmental Laws or that could otherwise give rise to liability under Environmental Laws if released into the indoor or outdoor environment.

Intellectual Property ” means all (i) patents, patent applications and invention disclosures, together with all reissues, divisionals, substitutions, continuations, continuations-in-part, extensions, or re-examinations thereof, as applicable; (ii) trademarks, service marks, trade names, trade dress, logos, and domain names, and all goodwill associated therewith, together with all applications and registrations in connection therewith; (iii) copyrights, and all applications and registrations in connection therewith; (iv) proprietary or confidential inventions, know-how, trade secrets and business information (including proprietary or confidential research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, methods, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information and business and marketing plans and proposals); and (v) rights in computer software (including rights in data, databases, and related documentation).

Knowledge ” means (a) with respect to Sellers or any Seller Indemnified Party, the actual knowledge (without any obligation to make inquiry) of Clay Bretches, Bruce Busmire, Harry Nagle and Jeremy Smith assuming, for the purposes of this Agreement, solely in the case of Jeremy Smith, that the actual knowledge of such individual is solely based on written documents or written materials actually provided to such individual and (b) with respect to Buyer or any Buyer Indemnified Party, the actual knowledge (without any obligation to make inquiry) of Wyatt Hogan, Dennis Coker, Nick Carter, Dwight Dunlap and Kevin Wall.

 

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Law ” means any applicable law, regulation, rule, ordinance, statute, act, code (including the Code), constitutional provision, order, decree, ruling, proclamation, resolution, judgment, decision, declaration, or interpretative or advisory opinion or letter of a domestic, foreign, tribal or international Governmental Authority or any political subdivision thereof.

Lien ” means, with respect to any property or asset, any mortgage, lien, pledge, charge, security interest or encumbrance in respect of such property or asset.

Material Adverse Effect ” means any change, event, circumstance, development or occurrence that has a material adverse effect on the financial condition, business, results of operations or assets of the Companies, taken as a whole, excluding any change, event, circumstance, development or occurrence to the extent resulting from, arising out of or relating to (i) the execution and announcement of the Agreement or Buyer’s ownership of the Purchased Interests from and after the Closing, (ii) changes or conditions generally affecting the industries in which OCI Wyoming L.P. operates, (iii) changes in economic, market, financial, regulatory or political conditions generally, (iv) any national or international acts of war or terrorism, (v) changes in Law or GAAP, (vi) the failure of the Companies to meet any internal forecasts or budgets of any period prior to, on or after the date of this Agreement; provided, however , that changes, events, circumstances, developments or occurrences set forth in clauses (ii), (iii), (iv), or (v) may be taken into account in determining whether there has been or is a Material Adverse Effect, to the extent that such changes, events, circumstances, developments or occurrences have a disproportionate adverse effect on the Companies, relative to other Persons engaged in businesses similar to the business of the Companies.

Net Revenue ” means “Net Sales” less “Freight Costs”, each as reflected in the audited combined financial statements of the Companies as of and for the applicable year then ended.

OCI Contracts ” means all Contracts by which OCI Wyoming Co. or OCI Wyoming L.P. or any of their respective properties or assets is bound.

Organizational Documents ” means, with respect to any Person, the articles of incorporation, certificate of incorporation, certificate of formation, certificate of limited partnership, bylaws, limited liability company agreement, operating agreement, partnership agreement, stockholders’ agreement and all other similar documents, instruments or certificates executed, adopted or filed in connection with the creation, formation or organization of such Person, including any amendments or modifications thereto.

Partnership Agreement ” means the Amended and Restated Agreement of Limited Partnership of OCI Wyoming L.P., as amended and as in effect on the date hereof.

Permitted Lien ” means:

(i) Liens for current period Taxes that are not yet due and payable;

 

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(ii) inchoate Liens arising by operation of law, including materialman’s, mechanic’s, repairman’s, laborer’s, warehousemen, carrier’s, employee’s, contractor’s and operator’s Liens arising in the ordinary course of business but only to the extent such Liens secure obligations that, as of the Closing, are not due and payable and are not being contested unless being contested in good faith and a reserve or other appropriate provision, if any, as required by GAAP is made therefor;

(iii) minor defects, irregularities in title, easements, rights of way, servitudes and similar rights (whether affecting fee interests, a landlord’s interest in leased properties or a tenant’s interest in leased properties) that individually or in the aggregate (1) have not had, and are not reasonably likely to have an adverse effect on the ability of OCI Wyoming L.P. or its Affiliates to use such property in the manner previously owned or used by OCI Wyoming L.P. or (2) materially impair the value of such property; or

(v) Liens affecting a landlord’s interest in property leased to OCI Wyoming L.P. so long as such Lien does not breach and is not reasonably likely to breach a customary covenant of quiet enjoyment (due to the existence of a non-disturbance agreement or other arrangement in which the tenant’s interest is recognized and protected).

Person ” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a Governmental Authority.

Plans ” means (a) each “employee benefit plan,” as such term is defined in Section 3(3) of ERISA (including employee benefit plans, such as foreign plans, which are not subject to the provisions of ERISA) and (b) each personnel policy, equity based compensation arrangement, bonus plan or arrangement, incentive award plan or arrangement, vacation policy, severance pay plan, policy or agreement, deferred compensation agreement or arrangement, executive compensation or supplemental income arrangement and each other employee benefit plan, agreement, arrangement, program, practice or understanding that is not described in clause (a) above, in either case, that is sponsored, maintained or contributed to by either of the Companies or that has been sponsored, maintained or contributed to by either of the Companies within six years prior to the date of this Agreement or with respect to which either of the Companies has or may have, or with respect to which Buyer or any of its Affiliates could reasonably be expected to have, any direct or indirect liability, contingent or otherwise.

Pre-Closing GP Liability ” means any debt, liability or obligation of any kind or character, whether known or unknown, absolute, accrued, contingent or otherwise (whether or not disclosed in a schedule hereto) of Bitco, in its capacity as a general partner of OCI Wyoming L.P. existing, arising or relating to any period on or prior to the Closing, solely to the extent arising under Sections 4.2 or 11.3(a) of the Partnership Agreement.

Pre-Closing Taxes ” means (a) any Taxes payable by, becoming due from or imposed on Buyer, any of its direct or indirect owners, any of their Affiliates, or either of the Companies, to the extent arising from or attributable to a breach of a representation in Section 3.19 and (b) any Taxes payable by, becoming due from or imposed on Buyer, any of its direct or indirect owners, or any of their Affiliates, to the extent attributable to the ownership of the Purchased Interests, or to the extent attributable to the operating of the businesses conducted by the Companies (or ownership of assets owned by the Companies), in each case on or prior to the Closing Date;

 

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provided that the portion, if any, of any such Tax due that is attributable to the operating of the businesses conducted by the Companies (or ownership of assets owned by the Companies) for a Tax period that includes the Closing Date shall be apportioned between Sellers and Buyer by an interim closing of the books as of the end of the Closing Date, except that (i) exemptions, allowances or deductions that are calculated on an annual basis (including depreciation and amortization deductions) shall be allocated between the period ending on and including the Closing Date and the period beginning after the Closing Date, in proportion to the number of days in each period and (ii) any franchise Tax or other Tax relating to the right to do business for a given period shall be allocated to the period during which the income, operations, assets or capital comprising the base of such Tax is measured, regardless of whether the right to do business for another period is obtained by the payment of such franchise tax.

Representatives ” means, with respect to any Person, the officers, directors, managers, employees, agents, accountants, advisors, attorneys, bankers and other representatives of such Person.

Securities Act ” means the Securities Act of 1933, as amended.

Tax ” means (a) all taxes, assessments, fees and other charges of any kind imposed by any Governmental Authority, including income, profits, gross receipts, net proceeds, alternative or add on minimum, ad valorem, value added, turnover, sales, use, property, personal property (tangible and intangible), environmental, stamp, leasing, lease, user, excise, duty, franchise, capital stock, transfer, registration, license, withholding, social security (or similar), unemployment, disability, payroll, employment, social contributions, fuel, excess profits, occupational, premium, windfall profit, severance, unclaimed property, escheat, estimated, or other charge of any kind whatsoever, (b) any liability for items described in (a) that are imposed on another Person by virtue of being or having been a member of a consolidated, combined, or other group, by virtue of being a transferee or successor or by contract, and (c) any interest, penalty or addition with respect to any of the items described in (a), whether disputed or not.

Tax Return ” means any return, declaration, report, statement, information statement, and other document required to be filed with respect to Taxes.

Third-Party Claim ” means a third-party claim pertaining to a matter subject to indemnification obligations hereunder asserted against an Indemnified Party by a Person other than (a) an Affiliate of such Indemnified Party or (b) any director, stockholder, officer, member, manager, partner or employee of any such Indemnified Party or its Affiliates.

Transaction Documents ” means this Agreement, the Assignment Agreement and all other documents delivered at the Closing pursuant to this Agreement.

Treasury Regulations ” means the regulations (including temporary regulations) promulgated by the United States Department of the Treasury pursuant to and in respect of provisions of the Code. All references in this Agreement to sections of the Treasury Regulations shall include any corresponding provisions or provisions of succeeding, similar or substitute, temporary or final Treasury Regulations.

 

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(b) Each of the following terms is defined in the Section set forth opposite such term:

 

AHC

     Preamble   

Agreement

     Preamble   

Annual Financial Statements

     3.5   

Annual Threshold Revenue

APC

    

 

2.6(b)

2.3(b)

  

  

Assignment Agreement

     6.1(c)   

Bitco

     Preamble   

Books and Records

     3.15   

Buyer

     Preamble   

Buyer Parties

     Preamble   

Buyer Indemnified Liabilities

     8.2(a)   

Buyer Indemnified Parties

Buy-Out Trigger Event

    

 

8.1(a)(i)

2.6(e)

  

  

Cash Amount

     2.1   

Claim Notice

     8.3   

Closing

     2.3(a)   

Closing Date

     2.3(a)   

Companies

     Recitals   

Contingent Purchase Price Obligation Payment

     2.6   

Contingent Purchase Price Obligation Payment Buy-Out Payment

     2.6(d)   

Contingent Purchase Price Obligation Payment Cap

     2.6(a)   

Creditors’ Rights

     3.2   

Deductible

     8.1(d)   

Discounted Value

     2.6(c)   

Financial Statements

Guaranteed Obligations

    

 

3.5

5.4

  

  

Indemnified Party

     8.3   

Indemnifying Party

     8.3   

Insurance Policies

     3.14   

Interim Balance Sheet

     3.5   

Interim Financial Statements

     3.5   

Limited Partner Interest

     Recitals   

OCI Permits

     3.10(b)   

OCI Wyoming L.P.

     Recitals   

OCI Wyoming L.P. Interest

     Recitals   

OCI Wyoming Co.

     Recitals   

OCI Wyoming Co. Interests

     Recitals   

Parent

     Preamble   

Party or Parties

     Preamble   

Personal Property

     3.12   

Purchase Price

     2.1   

 

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Purchase Price Allocation

     2.5   

Purchased Interests

     Recitals   

Real Property

     3.11(a)(ii)   

Sales Contract

     3.8   

Scheduled Leases

     3.11(a)(ii)   

Scheduled Owned Real Property

     3.11(a)(i)   

Seller Indemnified Liability

     8.1(a)   

Seller Indemnified Party

     8.2(a)   

Sellers

     Preamble   

Settlement Statement

     2.2(b)   

Tax Proceeding

     7.2   

Transfer Taxes

     7.1   

Yearly Excess

     2.6   

Section 1.2 Construction . In this Agreement, unless a clear contrary intention appears: (a) pronouns in the masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa; (b) if a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when used as another part of speech (such as a verb); (c) the term “including” shall be construed to be expansive rather than limiting in nature and to mean “including, without limitation”; (d) the word “or” shall not be deemed exclusive; (e) references to Articles and Sections refer to Articles and Sections of this Agreement; (f) the words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole, including the Schedules, and not to any particular subdivision unless expressly so limited; (g) references in any Article or Section or definition to any clause means such clause of such Article, Section or definition; (h) references to Schedules are to the items identified separately in writing by the Parties as the described Schedules attached to this Agreement, each of which is hereby incorporated in this Agreement and made a part of this Agreement for all purposes as if set forth in full in this Agreement; (i) all references to dollars or “$” shall be to the lawful currency of the United States of America; (j) references to “federal” or “Federal” means U.S. federal or U.S. Federal, respectively; (k) all accounting terms used in this Agreement and not expressly defined shall have the meanings given to them under GAAP; (l) any event contemplated by this Agreement requiring the payment of cash or cash equivalents on a day that is not a Business Day shall be deferred until the next Business Day; and (m) the Table of Contents and the Article and Section titles and headings in this Agreement are inserted for convenience of reference only and are not intended to be a part of, or to affect the meaning or interpretation of, this Agreement.

ARTICLE II

PURCHASE AND SALE

Section 2.1 Purchase and Sale . Upon the terms and subject to the conditions of this Agreement, at the Closing, Sellers shall sell, assign and deliver the Purchased Interests to Buyer, and Buyer shall purchase the Purchased Interests from Sellers. The aggregate cash consideration paid to Sellers by Buyer simultaneously with the execution and delivery of this Agreement for the purchase of the Purchased Interests shall be $310,000,000 (the “ Cash Amount ”), subject to adjustment pursuant to Section 2.2 hereof (as so adjusted, the “ Purchase Price ”), payable in accordance with Section 2.3(b) .

 

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Section 2.2 Purchase Price Adjustment.

(a) The Cash Amount for the Purchased Interests shall be:

(i) reduced by the amount of cash or cash equivalents of the Companies, in an aggregate amount not to exceed $17,500,000, distributed or paid to any Seller or to any Affiliate of any such Seller from and after the Effective Time until Closing with respect to the Purchased Interests (which, for the avoidance of doubt, will include any dividend or other distribution payable in cash, equity securities, other ownership interests, property or otherwise); and

(ii) increased by the amount of any capital contributions made to the Companies by the Sellers made after the Effective Time and prior to the Closing.

(b) Sellers have prepared and delivered to Buyer, and Buyer hereby acknowledges and agrees to, the settlement statement attached as Exhibit A (the “ Settlement Statement ”) setting the calculation of each adjustment to the Cash Amount to be made in accordance with Section 2.2(a) and setting forth the calculation of the Purchase Price.

Section 2.3 Closing.

(a) The closing of the purchase and sale of the Purchased Interests (the “ Closing ”) has taken place simultaneously with the execution and delivery of this Agreement at the offices of Anadarko Holding Company, 1201 Lake Robbins Drive, The Woodlands, Texas, 77380, at 10:00 a.m. local time on the date hereof (the “ Closing Date ”).

(b) Buyer has delivered or caused to be delivered to Anadarko Petroleum Corporation (“ APC ”), on behalf of Sellers, an amount equal to the Purchase Price in immediately available funds by wire transfer to an account of APC designated in advance by Sellers and Sellers have delivered or caused to be delivered to Buyer the documents required to be delivered to Buyer pursuant to Article VI .

Section 2.4 Withholding . Buyer is authorized to withhold from any amounts payable to Sellers pursuant to this Agreement, and to pay over to a foreign, federal, state or local government, any amounts required to be withheld pursuant to the Code or any provisions of any other foreign, federal, state or local law. All amounts withheld with respect to any payment shall be treated as amounts paid to the Sellers.

Section 2.5 Purchase Price Allocation . Buyer and Sellers agree to allocate the Purchase Price among the Purchased Interests in accordance with the allocation set forth on Exhibit B (the “ Purchase Price Allocation ”). Buyer and Sellers shall timely file any forms and statements required under U.S. federal or state income Tax laws consistent with such agreed Purchase Price Allocation. The Purchase Price Allocation shall be revised to take into account subsequent adjustments to the Purchase Price in a manner consistent with the foregoing. Buyer and Sellers shall not file any Tax Return or otherwise take any position with respect to Taxes which is inconsistent with the Purchase Price Allocation, except as otherwise required by applicable Laws.

 

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Section 2.6 Contingent Purchase Price Obligation . Following Closing, if the Net Revenue for a calendar year exceeds the Annual Threshold Revenue, as defined in Section 2.6(b) , for that year (for each year, the amount of the Net Revenue in excess of the Annual Threshold Revenue being defined as the “ Yearly Excess ”), then Sellers shall be entitled to receive from Buyer a payment (the “ Contingent Purchase Price Obligation Payment ”) for such calendar year equal to the following: (i) the Yearly Excess multiplied by (ii) thirty-eight and sixty-eight hundredths percent (38.68%), then multiplied by (iii) forty-eight and fifty-one hundredths percent (48.51%) and further multiplied by (iv) eighty percent (80.0%) in accordance with and subject to each of the following terms and conditions; provided, however, that in no event will any Contingent Purchase Price Obligation Payment be less than zero or greater than the Contingent Purchase Price Obligation Payment Cap.

(a) Buyer shall pay the Contingent Purchase Price Obligation Payment due for any calendar year, if any, to Sellers within thirty (30) days of Buyer’s (or any of its Affiliates’) receipt from the Companies of the audited combined financial statements of the Companies as of and for the applicable year. Sellers shall be entitled to receive Contingent Purchase Price Obligation Payments with respect to each calendar year beginning with the calendar year ending December 31, 2013 through and including the calendar year ending December 31, 2015; provided, that Buyer shall have no further obligation to make any Contingent Purchase Price Obligation Payment once the Discounted Value paid by Buyer under this Section 2.6(a) equals fifty million U.S. Dollars ($50,000,000) (such Discounted Value, the “ Contingent Purchase Price Obligation Payment Cap ”). If the Companies have not provided to Buyer audited combined financial statements with respect to any calendar year through the year ending December 31, 2015 by March 31 of the immediately succeeding year, Buyer and the Sellers shall work together in good faith to determine a reasonable estimate of Net Revenue for such year and, until such audited combined financial statements are delivered to Buyer, shall use such estimate in complying with this Section 2.6(a) ; provided that once such audited combined financial statements are available, the Parties shall adjust the amount(s) to be paid accordingly, and shall cause any overpayment or underpayment made as a result of such estimate to be promptly rectified.

(b) The “ Annual Threshold Revenue ” for each of 2013, 2014, and 2015 shall be $316,187,000.

(c) The “ Discounted Value ” is the sum of the values of each Contingent Purchase Price Obligation Payment paid to Sellers discounted back to January 1, 2013. The discount rate to be applied when calculating the January 1, 2013 value for each Contingent Purchase Price Obligation Payment is ten percent (10%) (nominal) per annum applied from January 1, 2013 until the date of payment of such Contingent Purchase Price Obligation Payment.

 

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(d) In lieu of Contingent Purchase Price Obligation Payments, Buyer may elect, at any time and at its sole option, to pay Sellers an amount to buy out its Contingent Purchase Price Obligation Payment obligation to Sellers (the “ Contingent Purchase Price Obligation Payment Buy-Out Payment ”). For purposes of this Section 2.6(d) , the amount of such Contingent Purchase Price Obligation Payment Buy-Out Payment shall be calculated such that its January 1, 2013 value (discounted as per clause (c) of this Section 2.6 using a ten percent (10%) (nominal) per annum discount rate) equals the Contingent Purchase Price Obligation Payment Cap less the Discounted Value of any Contingent Purchase Price Obligation Payments already made to Sellers. In the event Buyer pays to Sellers the Contingent Purchase Price Obligation Payment Buy-Out Payment, Sellers shall have no further rights and Buyer shall have no further obligations with respect to the Contingent Purchase Price Obligation Payments or the Contingent Purchase Price Obligation Payment Buy-Out Payment. Set forth on Exhibit C are examples, solely for illustrative purposes, of the calculation of Contingent Purchase Price Obligation Payment Buy-Out Payment contemplated by this Section 2.6(d) .

(e) If at any time, Buyer (or its Affiliate) ceases to own all or any portion of the equity ownership interests of either of the Companies or their respective successors (including the Purchased Interests), whether as a result of transfer or other disposition (including as a result of the dissolution or winding up of either Company) (a “ Buy-Out Trigger Event ”), then in lieu of Contingent Purchase Price Obligation Payments, Sellers may elect, at any time and at their sole option, to require Buyer to buy out the Contingent Purchase Price Obligation Payment by paying to Sellers the Contingent Purchase Price Obligation Payment Buy-Out Payment. In the event Sellers elect to require Buyer to buy out the Contingent Purchase Price Obligation Payment pursuant to this Section 2.6(e) , Buyer shall be obligated to pay the Contingent Purchase Price Obligation Payment Buy-Out Payment to Sellers within thirty (30) days following its receipt of written notice of such election by Sellers. Following such election by Sellers and the payment to Sellers of the Contingent Purchase Price Obligation Payment Buy-Out Payment, Sellers shall have no further rights and Buyer shall have no further obligations with respect to the Contingent Purchase Price Obligation Payments or the Contingent Purchase Price Obligations Payment Buy-Out Payment. Buyer shall promptly, but in no event later than ten (10) Business Days after a Buy-Out Trigger Event, notify Sellers in writing of such Buy-Out Trigger Event that may give rise to a buy-out obligation under this Section 2.6(e) . No such Buy-Out Trigger Event shall release or otherwise affect Buyer’s obligations under this Agreement.

(f) Promptly following the conclusion of each applicable year (but in no event later than ten (10) Business Days after Buyer receives the audited combined financial statements of the Companies for the applicable year), Buyer shall deliver to Sellers (i) a statement itemized in reasonable detail showing the computation of such Contingent Purchase Price Obligation Payment, including the computation of the Net Revenue for the applicable year, soda ash volumes sold, average soda ash price received thereon, and the Yearly Excess for the applicable year (based solely on information provided by OCI Wyoming L.P.) and (ii) the audited combined financial statements of the Companies for the applicable year. Buyer shall at all times use good faith efforts to maintain true and correct books and records sufficient to determine and confirm the Contingent Purchase Price Obligation Payment due, if any, with respect to each calendar year. For purposes of determining, confirming and auditing the Contingent Purchase Price Obligation Payments, the books and records of Buyer referred to in this Section 2.6(f) shall be open, at the reasonable request of Sellers, for inspection, copying, and audit (at Sellers’ sole cost and expense) by Sellers’ accountants or representatives, at the business office of Buyer during normal business hours upon twenty (20) days advance written notice to Buyer.

 

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(g) Any Contingent Purchase Price Obligation Payment which is not paid when due (or any over- or under-payment made under Section 2.6(a) ) shall bear interest at the rate per annum equal to the one (1) month term, London Interbank Offered Rate (LIBOR rate) for U.S. Dollar deposits as quoted by the British Bankers’ Association plus six hundred (600) basis points calculated from the date due until the date such payment is satisfied, such interest to become part of the amount payable. If the aforesaid rate is contrary to any applicable usury law, the rate of interest to be charged shall be the maximum rate permitted by such applicable law.

(h) If a Contingent Purchase Price Obligation Payment is not paid when due and remains unpaid for more than thirty (30) days after the due date of such Contingent Purchase Price Obligation Payment, then in lieu of Contingent Purchase Price Obligation Payments, Sellers may elect, at any time and at their sole option, to require Buyer to buy out the Contingent Purchase Price Obligation Payment by paying to Sellers the Contingent Purchase Price Obligation Payment Buy-Out Payment. In the event Sellers elect to require Buyer to buy out the Contingent Purchase Price Obligation Payment pursuant to this Section 2.6(h) , Buyer shall be obligated to pay the Contingent Purchase Price Obligation Payment Buy-Out Payment to Sellers within thirty (30) days following its receipt of written notice of such election by Sellers. Following such election by Seller and the full payment to Seller of the Contingent Purchase Price Obligation Payment Buy-Out Payment, Sellers shall have no further rights and Buyer shall have no further obligations with respect to the Contingent Purchase Price Obligation Payments or the Contingent Purchase Price Obligation Payment Buy-Out Payment.

(i) Subject to the last sentence of this Section 2.6(i) , Sellers acknowledge and agree that (i) from and after the Closing and except as expressly provided to the contrary in this Agreement, Buyer and Buyer’s representatives on the Partnership Committee or any other committee of OCI Wyoming L.P. have the right to agree to, promote, or vote or cause to vote the Purchased Interests in favor of, any action with respect to the Companies (and all components of their businesses) in any way that it deems appropriate in its sole discretion, (ii) neither Buyer nor Buyer’s representatives on the Partnership Committee or any other committee of OCI Wyoming L.P. have any obligation to agree to, promote, or vote or cause to vote the Purchased Interests in favor of, any action with respect to the Companies (or any component of their businesses), in order to achieve (or maximize the amount of) a Contingent Purchase Price Obligation Payment or the Contingent Purchase Price Obligation Payment Buy-Out Payment, (iii) Buyer and Buyer’s representatives on the Partnership Committee or any other committee of OCI Wyoming L.P. are under no obligation to agree to, promote, or vote or cause to vote the Purchased Interests in favor of, any action with respect to the Companies (or any component of their businesses), in a manner consistent with the manner in which the Companies operated their businesses prior to the Closing, (iv) the Contingent Purchase Price Obligation Payments and the Contingent Purchase Price Obligation Payment Buy-Out Payment are speculative and are subject to numerous factors outside the control of Buyer, including limitations applicable to Buyer under the Organizational Documents of the Companies, (v) there is no assurance that Sellers will receive any Contingent Purchase Price Obligation Payment and Buyer has not promised nor projected any Contingent

 

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Purchase Price Obligation Payments, (vi) neither Buyer nor Buyer’s representatives on the Partnership Committee or any other committee of OCI Wyoming L.P. owe any fiduciary duty or other express or implied duty to Sellers, including any implied duty of good faith and fair dealing, (vii) the Parties solely intend the express provisions of this Agreement to govern their contractual relationship and (viii) Sellers hereby waive any fiduciary duty or other express or implied duty of Buyer or Buyer’s representatives on the Partnership Committee or any other committee of OCI Wyoming L.P. to Sellers, including any implied duty of good faith and fair dealing. Notwithstanding anything herein to the contrary, (A) the Parties agree that the agreements, acknowledgements and waivers set forth in this Section 2.6(i) shall apply only if Buyer (or any Affiliate of Buyer) does not have Control of the Companies (or any successor entity of any of the Companies), (B) Buyer shall not in bad faith take any actions primarily motivated to reduce the amount or timing of any Contingent Purchase Price Obligation Payment, and (C) if any time prior to December 31, 2015, Buyer or any of its Affiliates has Control of the Companies (or any successor entity of any of the Companies), Buyer acknowledges that it shall be subject to the implied contractual covenant of good faith and fair dealing (as construed under Delaware law) with respect to the transactions contemplated by this Section 2.6 ; provided , however , that the Parties acknowledge that the foregoing shall not be construed as imposing on Buyer (or any of its Affiliates) at any time, whether or not Buyer or its Affiliates have Control of the Companies, any obligation to maximize the Contingent Purchase Price Payment Obligation Payment payable pursuant to this Section 2.6 .

ARTICLE III

REPRESENTATIONS AND WARRANTIES REGARDING SELLERS

AND THE COMPANIES

Except as set forth in the Disclosure Schedules, Sellers represent and warrant to Buyer, as of the date of this Agreement, as follows:

Section 3.1 Organization.

(a) AHC is a corporation duly formed, validly existing and in good standing under the laws of the State of Utah and has all corporate power required to carry on its business as now conducted. Bitco is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware and has all corporate power required to carry on its business as now conducted.

(b) To Sellers’ Knowledge, OCI Wyoming Co. is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware and has all corporate power required to carry on its business as now conducted. To Sellers’ Knowledge, OCI Wyoming L.P. is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware and has all limited partnership power required to carry on its business as now conducted. Sellers have made available to Buyer true and complete copies of the Organizational Documents of the Companies, as in effect on the date of this Agreement.

 

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(c) To Sellers’ Knowledge, each of the Companies is duly qualified to do business as a foreign limited partnership or foreign corporation, as applicable, and is in good standing in each jurisdiction in which the nature of the business as now conducted or the character of the property owned or leased by it makes such qualification necessary, which jurisdictions are listed on Schedule 3.1 .

Section 3.2 Authority; Enforceability . Sellers have all requisite corporate power and authority to execute and deliver this Agreement and the other Transaction Documents to which either Seller is a party, to perform their respective obligations under this Agreement and thereby and to consummate the transactions contemplated by this Agreement and thereby. The execution, delivery and performance by Sellers of this Agreement and any other Transaction Documents to which either Seller is a party and the consummation of the transactions contemplated by this Agreement and thereby are within the corporate power of Sellers and have been duly authorized by all necessary corporate action on the part of Sellers. This Agreement has been duly and validly executed by Sellers, and (assuming this Agreement is a valid and binding obligation of Buyer) this Agreement constitutes a valid and binding agreement of Sellers, enforceable against Sellers in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent transfer, moratorium and similar laws relating to or affecting creditors’ rights generally and subject, as to enforceability, to legal principles of general applicability governing the availability of equitable remedies (regardless of whether such enforceability is considered in a proceeding in equity or at law) (collectively, “ Creditors’ Rights ”). When each other Transaction Document to which either Seller is a party has been duly executed and delivered by such Seller (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of such Seller, enforceable against it in accordance with its terms, subject to Creditors’ Rights.

Section 3.3 No Conflicts; Consents and Approvals . The execution, delivery and performance of this Agreement by Sellers and the consummation of the transactions contemplated by this Agreement will not:

(a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the Organizational Documents of Sellers or the Companies;

(b) to Sellers’ Knowledge, be in violation of or result in a breach of or default (or give rise to any right of termination, cancellation or acceleration) under (with or without the giving of notice, the lapse of time, or both) any Contract to which either of the Companies is a party, except for any such violations or defaults (or rights of termination, cancellation or acceleration) which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect;

(c) result in the creation or imposition of any Lien on any of the Purchased Interests, other than restrictions on transfer applicable to Buyer after the Closing under the Organizational Documents of the Companies or under applicable securities Laws (it being understood and agreed that all such restrictions applicable to Sellers in connection with the transactions contemplated hereby have been complied with);

 

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(d) conflict with, violate or breach any term or provision of any applicable Law with respect to Sellers or, to Sellers’ Knowledge, the Companies, except as, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; or

(e) require any consent or approval of, notice to, or declaration, filing or registration with any Governmental Authority under any applicable Law or any other Person.

Section 3.4 Capitalization; Ownership . Schedule 3.4 sets forth a true and complete list that accurately reflects (i) to Sellers’ Knowledge, the outstanding Equity Interests in OCI Wyoming L.P. and OCI Wyoming Co. and (ii) the name of each Seller and the number or amount of Equity Interests in each Company owned by such Seller. AHC is the record and beneficial owner of the OCI Wyoming Co. Interests, Bitco is the record and beneficial owner of the OCI Wyoming L.P. Interest, and, to Sellers’ Knowledge, OCI Wyoming Co. is the record and beneficial owner of the Limited Partner Interest, in each case (and to Seller’s Knowledge only with respect to the Limited Partner Interest) free and clear of any Liens other than Liens arising pursuant to (a) the right of Buyer to acquire the Purchased Interests pursuant to this Agreement, (b) the Organizational Documents of the Companies, or (c) restrictions on transfer pursuant to applicable securities Laws. To Sellers’ Knowledge, all of the Purchased Interests have been duly authorized and validly issued, are non-assessable, and were issued and sold in accordance with federal and applicable state securities Laws and were not issued in violation of any statutory preemptive rights or preemptive rights granted under the Organizational Documents of the Companies. Except as set forth on Schedule 3.4 with respect to certain preemptive rights granted under the Organizational Documents of the Companies and except for the rights of Buyer created pursuant to this Agreement, there are no outstanding options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any kind relating to the right to subscribe for or purchase Equity Interests in the Companies or obligating the Companies to issue or sell any Equity Interests in the Companies. There are no outstanding contractual obligations of the Companies to (x) repurchase, redeem or otherwise acquire any of the Purchased Interests or, to Sellers’ Knowledge, any of the other Equity Interests in the Companies or (y) to Sellers’ Knowledge, to provide funds to, or make any investment in, any other Person. There are no outstanding or authorized equity appreciation, phantom equity, profit participation or similar rights affecting the Purchased Interests. Except for the Limited Partnership Interest owned by OCI Wyoming Co., the Companies do not own any Equity Interests or other securities in any other Person. At the Closing, Buyer will acquire good and valid title to the OCI Wyoming Co. Interests and the OCI Wyoming L.P. Interest in accordance with the Organizational Documents of the Companies and free and clear of any Liens, other than Liens pursuant to the Organizational Documents of the Companies, Liens arising at or after the Closing as a result of Buyer’s actions or obligations, and restrictions on transfer pursuant to applicable securities Laws. Sellers have performed all of the covenants and agreements required to be performed by Sellers with respect to any restriction on transfer of the Purchased Interests pursuant to the Organizational Documents of the Companies, which restrictions have been waived or otherwise expired at or prior to the Closing.

 

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Section 3.5 Financial Statements . Sellers have made available to Buyer, as received from the Companies, copies of (a) the audited combined balance sheets of the Companies as of December 31, 2011, 2010 and 2009 and the related audited combined statements of income and accumulated deficit and partners’ capital, stockholders’ equity, partners’ capital and comprehensive income and cash flows of the Companies for the years then ended (collectively referred to as the “ Annual Financial Statements ”) and (b) the unaudited balance sheets of the Companies as of November 30, 2012 the (“ Interim Balance Sheet ”) and the related unaudited statements of income and accumulated deficit and partners’ capital, stockholders’ equity, partners’ capital and comprehensive income and cash flows of the Companies for the eleven month period then ended (collectively referred to as the “ Interim Financial Statements ”). The Annual Financial Statements and the Interim Financial Statements are referred to collectively as the “ Financial Statements ”). To Sellers’ Knowledge, the Financial Statements (a) have been prepared from the books and records of the Companies in accordance with GAAP applied on a consistent basis throughout the periods indicated thereby (except as may be indicated in the notes thereto), and (b) fairly present, in all material respects, the financial position of the Companies as of the respective dates thereof and the results of operations for the respective periods covered thereby, subject, however, in the case of the Interim Financial Statements, to normal non-material year-end audit adjustments and accruals and to the absence of notes, in each case except as otherwise noted therein.

Section 3.6 No Undisclosed Liabilities . To Sellers’ Knowledge, neither of the Companies has (a) any liability that would be required by GAAP to be reflected, reserved against or otherwise described on a combined balance sheet of the Companies other than (i) liabilities set forth on the face of the Interim Balance Sheet (rather than any notes thereto) and (ii) liabilities which have arisen after the date of the Interim Balance Sheet in the ordinary course of business (none of which results from, arises out of, relates to, or was caused by any breach of contract, breach of warranty, tort, infringement, or violation of Law) or (b) any material liabilities relating to any Plan that are not set forth in the Financial Statements.

Section 3.7 Absence of Certain Changes . Since the Balance Sheet Date, to Sellers’ Knowledge, the Companies have operated in the ordinary course of business consistent with past practice and there have been no changes, developments, events, effects, conditions or occurrences that, individually or in the aggregate, have had or would reasonably be expected to have a Material Adverse Effect and, except as set forth on Schedule 3.7 , to Sellers’ Knowledge, the Companies have not:

(a) amended their respective Organizational Documents;

(b) issued or sold any of their respective Equity Interests or any options, warrants, convertible or exchangeable securities, or other rights of any kind with respect to such Equity Interests;

(c) redeemed, repurchased or otherwise acquired any of their respective Equity Interests;

(d) split, combined, or reclassified any of their respective Equity Interests;

(e) adopted a plan of complete or partial liquidation, dissolution, recapitalization or other reorganization;

 

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(f) made any material acquisition of all or any significant part of the assets, properties, capital stock or business of any other Person, except in the ordinary course of business consistent with past practice, or entered into an agreement to merge or consolidate either of the Companies with any other Persons;

(g) sold, transferred or disposed of any material assets, except in the ordinary course of business consistent with past practice;

(h) commenced or settled any material litigation;

(i) received any capital contributions or declared, set aside or paid any dividend on, or any other distribution with respect to, the Equity Interests in the Companies;

(j) borrowed funds or guaranteed the financial position or obligations of any Person;

(k) made any changes in accounting or Tax reporting principles, methods or policies of either of the Companies;

(l) made or rescinded any election relating to Taxes or settled or compromised any Claim relating to Taxes;

(m) mortgaged, pledged or subjected any of the Purchased Interests to any Lien;

(n) discharged or satisfied any Lien, or paid any obligation or liability (fixed or contingent), except in the ordinary course of business and which, individually or in the aggregate, would not be material to either of the Companies;

(o) canceled or compromised any material debt or Claim or entered into, amended, canceled, terminated, relinquished, waived or released any Contract or material right thereunder;

(p) made any capital expenditures or capital additions or betterments;

(q) entered into, amended or terminated any Contract with, or made any payment to, any Affiliate of either Company or any director, manager, officer, holder of Equity Interest, employee or contractor of either Company or any such Affiliate (whether as a loan or otherwise) except regular compensation and usual benefits payments in the ordinary course of business consistent with past practices;

(r) except as required by applicable Law, adopted or terminated, or made any material amendment or modification to, any Plan;

(s) entered into, amended or terminated any employment, consulting, change in control, management, bonus, termination pay, retention, severance or indemnification agreement or an agreement with respect to a retention bonus (nor amended any such agreement), or entered into, or become bound by, any collective bargaining agreement or other obligation to any labor organization or employee representative;

 

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(t) increased the compensation or benefits of any director, manager, officer, member, employee or contractor; or

(u) committed to do any of the foregoing.

Section 3.8 Material Contracts . To Sellers’ Knowledge, (a) all Contracts for the sale and marketing of soda ash to which either Company is bound (each, a “ Sales Contract ”), Scheduled Leases and all material OCI Contracts are in full force and effect and are valid, binding and enforceable against the Companies and each other Person party thereto, in accordance with their terms, subject to Creditors’ Rights, (b) except as set forth on Schedule 3.8 , without giving effect to the foregoing Knowledge qualifier, no Affiliate of a Seller is party to a Sales Contract, Scheduled Lease or a material OCI Contract, (c) neither of the Companies nor any other Person, is in default or has received any notice of default under any Sales Contract, Scheduled Lease or material OCI Contract; and (d) no event has occurred that with notice or lapse of time, or both, would constitute a breach of or default under any Sales Contract, Scheduled Lease or material OCI Contract, or permit termination, modification or acceleration of any material OCI Contract in any manner adverse to either of the Companies.

Section 3.9 Litigation . To Sellers’ Knowledge, there are no actions, suits, investigations or proceedings pending or threatened against the Companies, other than any actions, suits, investigations or proceedings that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Except as set forth in Schedule 3.9 , to Sellers’ Knowledge, the Companies are not subject to any outstanding judgment, order or decree of any Governmental Authority (other than judgments, orders or decrees and requirements of Government Authorities in connection with ordinary permitting, interconnection requests, and similar requirements for project development), and no such judgment, order or decree that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

Section 3.10 Compliance with Laws; Permits .

(a) To Sellers’ Knowledge, the Companies are and, during the five (5) years prior to the date of this Agreement, have been in compliance in all material respects with all Laws applicable to their business and operations, and the Companies have not received any notice of or been charged with a violation of any applicable Laws. To Sellers’ Knowledge, no material investigation, audit or review by any Governmental Authority is pending or threatened against either of the Companies with respect to a violation of any applicable Law.

(b) To Sellers’ Knowledge, the Companies have obtained and are maintaining all material permits, licenses, variances, exemptions, orders, franchises, consents, registrations, authorizations, permissions and approvals of any Governmental Authority necessary or desirable for the lawful ownership, lease and operation of the Companies and their respective businesses and assets (the “ OCI Permits ”). To Sellers’ Knowledge, each OCI Permit is valid and in full force and effect and no OCI Permits will be subject to suspension, modification, revocation or nonrenewal as a result of the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.

 

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Section 3.11 Real Property.

(a) To Sellers’ Knowledge:

(i) Schedule 3.11 lists all real property owned (beneficially or of record) by the Company (the “ Scheduled Owned Real Property ”). The Companies have good and marketable title to the Scheduled Owned Real Property. The Scheduled Owned Real Property is not encumbered by Liens other than Permitted Liens.

(ii) Schedule 3.11 lists all surface leases (and the lands covered thereby) pursuant to which each Company leases minerals or real property for use in connection with the Companies (all such listed leases collectively, the “ Scheduled Leases ”, together with the Scheduled Owned Real Property, the “ Real Property ”). A true and complete copy of each of the Scheduled Leases, as amended to date, has been furnished to Buyer. The Person identified on Schedule 3.11 as the lessee or sublessee under any particular Scheduled Lease owns the leasehold interest created pursuant to such lease free and clear of all Liens except Permitted Liens.

(iii) (A) other than the Companies, there are no parties in possession of any portion of any Real Property as lessees, subtenants, tenants at sufferance or trespassers, (B) the Companies have full right and authority to use and operate all of the improvements located on the Real Property, subject to applicable Laws and Permitted Liens and (C) there is no pending or threatened condemnation, eminent domain or similar proceeding or special assessment affecting any of the Real Property; and

(iv) All utilities (including water, sewer or septic, gas, electricity, trash removal and telephone service) are available to the Real Property in sufficient quantities and quality to adequately serve the Real Property in connection with the operation of the Companies conducted therefrom as such operations are currently conducted thereon.

(b) The Sellers have furnished Buyer with true and complete copies of all deeds, leases, title opinions, title insurance policies and surveys that, to Sellers’ Knowledge, are in Sellers’ possession that relate to the Real Property, together with copies of all reports of any engineers, environmental consultants or other consultants in Sellers’ possession relating to any of the Real Property.

Section 3.12 Personal Property . To Sellers’ Knowledge (a) the Companies have good title to all material personal property used or held for use by the Companies in connection with the Companies’ business (together, the “ Personal Property ”), (b) each material item of Personal Property is in reasonably good working order and repair (taking its age and ordinary wear and tear into account), has been operated and maintained in the ordinary course of business and remains in suitable and adequate condition for use consistent with its use since December 31, 2011 (or later acquisition date) and (c) neither of the Companies nor any of their respective subsidiaries has material deferred maintenance of any such item in contemplation of the transactions contemplated by this Agreement.

 

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Section 3.13 Customers, Suppliers Vendors . To Sellers’ Knowledge, Sellers have received no notice of any present intent of any significant customer, vendor or supplier of the Companies to discontinue or substantially alter its relationship as such with either of the Companies.

Section 3.14 Insurance . To Sellers’ Knowledge, (a) the policies, binders, and insurance contracts under which the Companies or any of their assets are insured (the “ Insurance Policies ”) are in full force and effect, (b) Sellers have received no written notice of any cancellation or any threatened cancellation of any Insurance Policy, (c) the Insurance Policies will continue to be in full force and effect after Closing until their ordinary expiration date, and (d) there is no claim by either of the Companies pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds.

Section 3.15 Books and Records . To Sellers’ Knowledge, all books, records, documents, instruments, accounts, correspondence, writings, evidences of title and other papers and electronic files relating to the business of the Companies (“ Books and Records ”) in their possession or the possession of the Companies relating to the ownership and operation of the Companies and the Purchased Interests have been maintained in accordance with applicable Laws.

Section 3.16 Certain Payments . To Sellers’ Knowledge, neither of the Companies nor, to the Sellers’ Knowledge, any member, director, officer, agent, employee or other Person associated with or acting on behalf of the Companies (a) has taken any action in furtherance of an offer, payment, promise to pay or authorization of payment or giving of anything of value to any Governmental Authority or to any other Person while knowing that all or some portion of the money or value will be offered, given or promised to a Governmental Authority for the purposes of obtaining or retaining business or securing any other improper advantage, (b) has violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977 or any comparable provision of local or foreign Law, or (c) has any plans to take any of the foregoing actions. To the Sellers’ Knowledge, neither of the Companies nor any member, director, officer, agent, employee or other Person associated with or acting on behalf of the Companies is or has any plans to become a government official or is owned, directly or indirectly, in whole or in part, or controlled by, any government, or Governmental Authority.

Section 3.17 Employee Matters.

(a) To Sellers’ Knowledge, all wages, bonuses and other compensation due, if any, and payable as of the Closing to present and former employees and contractors of the Companies have been paid in full or will be paid in full to such employees and contractors prior to the Closing.

 

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(b) To Sellers’ Knowledge, (i) neither of the Companies is a party to, or has ever been bound by, the terms of any collective bargaining agreement or any other Contract with any labor union or representative of employees, and no such agreements are being negotiated, (ii) no union representation petition or campaign is pending or threatened with regard to any employee of either of the Companies, (iii) there are no labor disputes existing or threatened involving, by way of example, strikes, work stoppages, slowdowns, picketing or any other interference with work or production, or any other concerted action by employees of either of the Companies, and neither of the Companies has experienced any material labor difficulties during the last five years and (iv) neither of the Companies is subject to any judgment, order, settlement or consent decree with or relating to any present or former employee, employee representative or any Governmental Authority relating to claims of discrimination, wage practices or other claims in respect of employment or labor practices and policies.

(c) To Sellers’ Knowledge, the Companies are and have been in compliance in all material respects with all applicable Laws relating to the employment of labor, including, without limitation, labor and employment practices, terms and conditions of employment, employee classification, overtime pay, FLSA compliance, non-discrimination, non-retaliation, wages and hours, employee leave, record-keeping, payroll documents, equal opportunity, immigration, occupational health and safety, severance, termination or discharge, collective bargaining and the payment of employee welfare and retirement and other Taxes.

Section 3.18 Environmental Matters

(a) To Sellers’ Knowledge, (i) the Companies are, and during the five (5) years prior to the date of this Agreement have been, in compliance in all material respects with all Environmental Laws applicable to their business and operations, and (ii) the Companies have not received any notice of or been charged with a material violation of any Environmental Laws.

(b) To Sellers’ Knowledge, the Companies have obtained, are maintaining, and are, and during the five years prior to the date of this Agreement have been, in compliance in all material respects with the terms of all OCI Permits required pursuant to Environmental Laws.

(c) To Sellers’ Knowledge, there are no pending or threatened material actions, suits investigations or proceedings by any Governmental Authority or other person against or which concern either of the Companies with respect to a material violation of or material liability under Environmental Laws or any OCI Permit required pursuant to Environmental Laws.

(d) To Sellers’ Knowledge, no Hazardous Substances generated as a result of the respective businesses or operations of the Companies have been released into the environment, recycled, treated or disposed of in a manner that would reasonably be expected to give rise to liability under Environmental Laws, and none of the real property upon which the business or operations of the Companies are or have been conducted contains Hazardous Substances that require remediation or removal under Environmental Laws, except for such liability or remediation that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

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(e) Sellers have made available to Buyer copies of all reports, correspondence, and other documents and records in the possession of Sellers concerning material environmental matters and issues involving the business or operations of the Companies, including compliance with Environmental Laws, releases of Hazardous Substances, and any claims made pursuant to Environmental Laws.

Section 3.19 Taxes . Except as disclosed on Schedule 3.19 :

(a) Sellers have timely filed all material Tax Returns required by applicable Law with respect to the Purchased Interests due on or prior to the date hereof, and have timely paid or caused to be timely paid all Taxes shown as due and payable on such Tax Returns or otherwise applicable to the ownership of the Purchased Interests within the prescribed period or any extensions thereof;

(b) to Sellers’ Knowledge, each of the Companies has duly and timely filed all Tax Returns required to be filed by it;

(c) to Sellers’ Knowledge, all Taxes owed by either of the Companies (including, without limitation, all Tax withholding and deposit requirements) have been timely paid in full, whether disputed or not;

(d) there are no Liens on any of the Purchased Interests, other than restrictions on transfer applicable to Buyer after the Closing under the Organizational Documents of the Companies or under any applicable securities Laws (it being understood and agreed that all such restrictions applicable to Sellers in connection with the transactions contemplated hereby have been complied with);

(e) to Sellers’ Knowledge, neither of the Companies has received notice of any claims pending or threatened by any Governmental Authority with respect to any Taxes due from either of the Companies, and no assessment, deficiency, or adjustment has been asserted, proposed, or threatened with respect to any such Taxes;

(f) to Sellers’ Knowledge, neither of the Companies is now, and neither of the Companies has previously been, under audit or examination by any Governmental Authority with respect to any Taxes or any Tax Returns due from it;

(g) Sellers have provided to Buyer true and correct copies of all material Tax Returns filed by OCI Wyoming L.P. during the past three years, and all correspondence with a Governmental Authority relating to such Tax Returns or Taxes due from OCI Wyoming L.P., that, in each case, are in the possession of Sellers;

(h) to Sellers’ Knowledge, there are no agreements, waivers or other arrangements providing for an extension of time with respect to (i) the filing of any Tax Returns of either of the Companies or (ii) the assessment or collection of any Tax due from either of the Companies;

 

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(i) to Sellers’ Knowledge, neither Company is a party to any Tax sharing, allocation or indemnity agreement or arrangement with, and neither Company has any obligation to indemnify or make a payment to, any Person in respect of any Tax for any past, current or future period, including, without limitation, (i) pursuant to Treasury Regulation § 1.1502-6 or otherwise as a result of having been a member of a group filing Tax Returns on an affiliated, consolidated, combined, unitary, or similar basis, other than by virtue of being a member of the affiliated group of corporations of which OCI Chemical Corporation is the common parent for U.S. federal income tax purposes, (ii) as a transferee or successor, or (iii) by contract or otherwise;

(j) to Sellers’ Knowledge, neither of the Companies will be required to include an amount in taxable income for any taxable period ending after the Closing Date with respect to which a corresponding amount has previously accrued or been taken into account (including for purposes of the Financial Statements) as a result of (i) a change in accounting method on or prior to the Closing Date, (ii) an agreement with any Governmental Authority in existence on the Closing Date, or (iii) OCI Wyoming L.P.’s method of accounting for Tax purposes (including, without limitation, the use or application of the installment method of accounting, the completed contract method of accounting, the long-term contract method of accounting or the cash method of accounting);

(k) to Sellers’ Knowledge, OCI Wyoming L.P. has not (i) participated (within the meaning of Treasury Regulations § 1.6011-4(c)(3)) in any “reportable transaction” within the meaning of Treasury Regulations § 1.6011-4(b) (and all predecessor regulations), (ii) claimed any deduction, credit, or other Tax benefit by reason of any “tax shelter” within the meaning of former Section 6111(c) of the Code and the Treasury Regulations promulgated thereunder or any “confidential corporate tax shelter” within the meaning of former Section 6111(d) of the Code and the Treasury Regulations promulgated thereunder or (iii) purchased or otherwise acquired an interest in any “potentially abusive tax shelter” within the meaning of former Treasury Regulation § 301.6112-1;

(l) OCI Wyoming L.P. is properly treated as a partnership for U.S. federal income tax purposes and has been so treated since the date of its formation; and

(m) to Sellers’ Knowledge, OCI Wyoming Co. is properly treated as a corporation for U.S. federal income tax purposes and, to Sellers’ Knowledge, has been so treated since the date of its formation.

Section 3.20 Assets Necessary to the Business . To Sellers’ Knowledge, the assets owned by the Companies (a) constitute all of the assets necessary to conduct the business of the Companies in substantially the same manner as it is currently conducted and that have been used in connection with the operations of the Companies since December 31, 2011 and (b) at Closing will constitute all of the assets of the Companies used in the business immediately prior to the Closing.

 

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Section 3.21 Intellectual Property . The Companies have, to the Sellers’ Knowledge, the right to use all of the material Intellectual Property used by them in the conduct of the business of the Companies. To the Sellers’ Knowledge, (a) the conduct of the business of the Companies does not infringe or otherwise violate any Person’s Intellectual Property, and as of the date hereof there is no such claim pending or threatened against any of the Companies and (b) (i) no Person is infringing or otherwise violating any material Intellectual Property owned by the Companies in the conduct of the business of the Companies and (ii) no such claims are pending or threatened against any Person by the Companies.

Section 3.22 Brokers’ Fees . There is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of Sellers that might be entitled to any fee or commission in connection with the transactions contemplated by this Agreement where such fee or commission would be payable by Buyer or any of its Affiliates.

Section 3.23 Waiver of Other Representations . EXCEPT FOR ANY EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE III , THE PURCHASED INTERESTS ARE SOLD “AS IS, WHERE IS,” AND SELLERS EXPRESSLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, AS TO THE LIABILITIES, OPERATIONS, TITLE, CONDITION, VALUE OR QUALITY OF THE ASSETS OR PROPERTIES OF THE COMPANIES OR THE PROSPECTS (FINANCIAL AND OTHERWISE), RISKS AND OTHER INCIDENTS OF OWNERSHIP OF THE COMPANIES AND THEIR ASSETS AND PROPERTIES, AND SELLERS SPECIFICALLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES OF MERCHANTABILITY, USAGE, OR SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE ASSETS OR PROPERTIES OF THE COMPANIES, OR ANY PART THEREOF, OR AS TO THE WORKMANSHIP THEREOF, OR THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT. WITHOUT LIMITING THE FOREGOING, EXCEPT AS SET FORTH IN THIS ARTICLE III , SELLERS EXPRESSLY DISCLAIM COMPLIANCE WITH ANY ENVIRONMENTAL REQUIREMENTS BY THE COMPANIES, OR AS TO THE CONDITION OF THE ASSETS OR PROPERTIES OF THE COMPANIES, OR ANY PART THEREOF, AND, EXCEPT AS SET FORTH IN THIS ARTICLE III , FURTHER SPECIFICALLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES REGARDING THE ABSENCE OF ANY HAZARDOUS MATERIALS, ENVIRONMENTAL LIABILITIES OR POTENTIAL ENVIRONMENTAL LIABILITIES. EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE III , SELLERS EXPRESSLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND REGARDING THE COMPANIES’ SYSTEMS OR FACILITIES THAT ARE TO BE CONSTRUCTED.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER PARTIES

Buyer Parties represent and warrant to Sellers, with respect to themselves and not with respect to each other, as of the date of this Agreement, as follows:

 

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Section 4.1 Organization .

(a) Buyer is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has all limited liability company power required to carry on its business as now conducted. Buyer is duly qualified to do business in each other jurisdiction where such qualification is necessary, except in those jurisdictions where the failure to be so duly qualified or licensed would not reasonably be expected to materially delay or have a material adverse effect on Buyer’s ability to perform its obligations under this Agreement.

(b) Parent is a limited liability company duly formed, validly existing and in good standing under the laws of Delaware and has all limited liability company power required to carry on its business as now conducted. Parent is duly qualified to do business in each other jurisdiction where such qualification is necessary, except in those jurisdictions where the failure to be so duly qualified or licensed would not reasonably be expected to materially delay or have a material adverse effect on Parent’s ability to perform its obligations under this Agreement.

Section 4.2 Authorization; Enforceability .

(a) Buyer has all requisite limited liability company power and authority to execute and deliver this Agreement, to perform its obligations under this Agreement and to consummate the transactions contemplated by this Agreement. The execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions contemplated by this Agreement are within the limited liability company power of Buyer and have been duly authorized by all necessary limited liability company action on the part of Buyer. This Agreement has been duly and validly executed by Buyer, and (assuming this Agreement is a valid and binding obligation of Sellers) this Agreement constitutes a valid and binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except as enforceability may be limited by Creditors’ Rights.

(b) Parent has all requisite limited liability company power and authority to execute and deliver this Agreement, to perform its obligations under this Agreement and to consummate the transactions contemplated by this Agreement. The execution, delivery and performance by Parent of this Agreement and the consummation of the transactions contemplated by this Agreement are within the limited liability company power of Parent and have been duly authorized by all necessary limited liability company action on the part of Parent. This Agreement has been duly and validly executed by Parent, and (assuming this Agreement is a valid and binding obligation of Sellers) this Agreement constitutes a valid and binding agreement of Parent, enforceable against Parent in accordance with its terms, except as enforceability may be limited by Creditors’ Rights.

Section 4.3 No Conflicts; Consents and Approvals . The execution and delivery by such Buyer Party of this Agreement does not, and the performance by such Buyer Party of its respective obligations under this Agreement will not:

(a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the Organizational Documents of such Buyer Party;

 

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(b) be in violation of or result in a breach of or default (or give rise to any right of termination, cancellation or acceleration) under (with or without the giving of notice, the lapse of time, or both) any Contract to which such Buyer Party is a party, except for any such violations or defaults (or rights of termination, cancellation or acceleration) which would not reasonably be expected to materially delay or have a material adverse effect on such Buyer Party’s ability to perform its respective obligations under this Agreement; or

(c) (i) conflict with, violate or breach any term or provision of any Law applicable to such Buyer Party, except as would not reasonably be expected to materially delay or have a material adverse effect on such Buyer Party’s ability to perform its obligations under this Agreement or (ii) require any consent or approval of, notice to, or declaration, filing or registration with any Governmental Authority under any applicable Law, except for such filings as may be required under the Exchange Act and other than such consents, approvals, notices, declarations, filings or registrations which, if not made or obtained, would not reasonably be expected to materially delay or have a material adverse effect on such Buyer Party’s ability to perform its respective obligations under this Agreement.

Section 4.4 Investment Representations . Buyer is an investor experienced (or owned or managed by Persons experienced) in evaluating investments and has the knowledge, experience and resources to enable it to evaluate and to bear the risks of the investment represented by the Purchased Interests. Buyer understands that the sale of the Purchased Interests under this Agreement will not be registered or qualified under the Securities Act or any state securities or blue sky laws. The Purchased Interests are being acquired by Buyer for its own account for the purpose of investment and not with a view to distribution in violation of the Securities Act or any applicable state securities or blue sky laws. Buyer is an “accredited investor” (as such term is defined in Rule 501 of Regulation D of the Securities Act).

Section 4.5 Litigation . There are no actions, suits, investigations or proceedings pending or threatened in writing against such Buyer Party, nor are there any outstanding judgments, orders or decrees that affect or bind such Buyer Party, that would reasonably be expected to result in the issuance of a judgment, order or decree restraining, enjoining or otherwise prohibiting or making illegal the purchase by such Buyer Party of the Purchased Interests under this Agreement or the performance by such Buyer Party of its obligations under this Agreement.

Section 4.6 Financing . Such Buyer Party has sufficient cash, available lines of credit or other sources of immediately available funds to make all payments that may be required to be made (including contingent payments) pursuant to the terms of this Agreement.

Section 4.7 Brokers’ Fees . There is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of such Buyer Party who might be entitled to any fee or commission in connection with the transactions contemplated by this Agreement where such fee or commission would be payable by Sellers or any of its Affiliates.

 

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Section 4.8 Investigation; No Other Representations . Such Buyer Party acknowledges and agrees that the representations and warranties set forth in Article III constitute the sole and exclusive representations and warranties of Sellers in connection with the transactions contemplated hereby. There are no representations, warranties, covenants, understandings or agreements of Sellers regarding Sellers, the Purchased Interests, or the Companies other than those set forth in this Agreement. Except for the representations and warranties expressly set forth in Article III , such Buyer Party disclaims reliance on any representations or warranties, either express or implied, by Sellers, and such Buyer Party acknowledges and agrees that no material or information provided by or communications made by Sellers, the Companies or any broker, investment banker or information provided during due diligence (including information in any electronic data room or in response to any information request provided by Buyer (or any of its Affiliates)) will cause or create any warranty, express or implied, as to the liabilities, operations, title, condition, value or quality of the properties or the prospects (financial or otherwise), risks and other incidents of ownership of the Companies and the properties of the Companies that is not expressly set forth in Article III . Such Buyer Party has conducted its own independent review and analysis of the business, operations, assets, liabilities, results of operations, financial condition, technology and prospects of the Companies’ business and acknowledges that such Buyer Party has been provided adequate access to personnel, properties, premises and records of the Companies’ business for such purpose. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ARTICLE III OF THIS AGREEMENT, EACH BUYER PARTY ACKNOWLEDGES AND AGREES THAT THE PURCHASED INTERESTS ARE BEING ACQUIRED “AS IS, WHERE IS” ON THE CLOSING DATE, AND IN THEIR CONDITION ON THE CLOSING DATE. EACH BUYER PARTY FURTHER ACKNOWLEDGES AND AGREES THAT THE REPRESENTATIONS AND WARRANTIES OF SELLERS SET FORTH IN THIS AGREEMENT TERMINATE AS SET FORTH IN ARTICLE VIII , AND THAT FOLLOWING SUCH TERMINATION OF THE REPRESENTATIONS AND WARRANTIES, NO BUYER PARTY SHALL HAVE ANY RECOURSE WITH RESPECT TO ANY BREACH OF SUCH REPRESENTATIONS AND WARRANTIES. EACH BUYER PARTY ACKNOWLEDGES AND AGREES THAT IT HAS NOT RELIED, INCLUDING FOR PURPOSES OF SECTION 27.01 OF THE TEXAS BUSINESS AND COMMERCE CODE, ON ANY REPRESENTATION OR WARRANTY OTHER THAN THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN ARTICLE III IN MAKING ITS INVESTMENT DECISION WITH RESPECT TO THE PURCHASED INTERESTS.

ARTICLE V

COVENANTS

Section 5.1 Access to Information .

(a) The Confidentiality Agreements shall terminate on the Closing.

(b) After the Closing, upon reasonable written notice, to the extent permitted by the Organizational Documents of the Companies, Buyer shall furnish or cause to be furnished to Sellers and their Representatives access, during normal business hours, to such information, the Books and Records and assistance, in each case to the extent in Buyer’s possession or

 

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control, relating to the business of the Companies as is reasonably necessary for the preparation and filing of any Tax Return, the defense of any Tax claim or assessment or in connection with the prosecution or defense of any investigation, claim (including any insurance claims) or legal proceeding of Sellers, the Companies or any of their Affiliates or in order to enable Sellers to comply with their obligations (or confirm compliance by Buyer with its obligations) under this Agreement. Sellers shall promptly reimburse Buyer for reasonable documented out-of-pocket costs and expenses incurred in assisting Sellers pursuant to this Section 5.1(a) .

(c) Buyer shall, to the extent permitted by the Organizational Documents of the Companies, preserve and keep the Books and Records for at least five years following the Closing Date or for such longer period as may be required by applicable Law.

(d) Sellers agree not to disclose, or allow their Affiliates and the respective Representatives of the foregoing to disclose, to others of any Confidential Information for a period of two (2) years after the Closing Date, except that any Seller may disclose Confidential Information to its Affiliates and Representatives, provided that such Seller shall be responsible for any breach of the applicable terms of this Section 5.1(d) by any of its Affiliates or Representatives to which it disclosed Confidential Information.

Section 5.2 Efforts; Further Assurances . Subject to the terms and conditions of this Agreement, each Party shall take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary or desirable under applicable Law or the Partnership Agreement to consummate the transactions contemplated by this Agreement. The Parties agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement in accordance with the terms hereof.

Section 5.3 Public Announcements . With respect to the Closing, Buyer and Sellers agree to consult with each other before issuing any press release or making any public statement with respect to this Agreement or the transactions contemplated by this Agreement and, except for any press releases and public announcements the making of which may be required by applicable Law or any listing agreement with any national securities exchange, will not issue any such press release or make any such public statement prior to such consultation.

Section 5.4 Parent Guarantee . Parent hereby irrevocably, absolutely, and unconditionally guarantees to Sellers the full and timely performance and discharge by Buyer of all payment and performance obligations of Buyer contemplated by Section 2.6 of this Agreement when and as the same shall become due and payable (the “Guaranteed Obligations”) in accordance with Section 2.6 and this Section 5.4 and hereby agrees that if Buyer shall fail to pay any amount, or to perform any obligation, in either case, when due, pursuant to the terms of Section 2.6 of this Agreement, Parent shall forthwith pay to Sellers (or Sellers’ designee(s)) such amount or perform (or cause Buyer to perform) such obligation, as such payment and discharge or performance is required to be made by Buyer pursuant to such terms. Except to the extent otherwise expressly provided herein, the guarantee in the immediately preceding sentence is an absolute, present and continuing guarantee of payment and not of collectability. It shall not be necessary for Sellers in order to enforce such payment by the Parent to first exhaust its remedies against Buyer or any other Person liable with respect to any Guaranteed Obligations.

 

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ARTICLE VI

CLOSING DELIVERIES

Section 6.1 Deliveries By Sellers at Closing

Simultaneously herewith, Sellers have delivered or caused to be delivered to Buyer:

(a) statements pursuant to Treasury Regulation Section 1.1445-2(b)(2) certifying that Sellers are not foreign persons;

(b) a certificate executed by the Secretary of the Companies certifying on behalf of the Companies (i) that OCI Wyoming Holding Co., Bitco and OCI Wyoming Co. are the only partners of OCI Wyoming L.P., (ii) to the incumbency and signatures of the officers of OCI Wyoming Co., OCI Wyoming Holding Co. and OCI Wyoming L.P. executing any Transaction Document to which OCI Wyoming Co., OCI Wyoming Holding Co. or OCI Wyoming L.P. is a party, (iii) to the incumbency and signatures of the representatives on the Partnership Committee of OCI Wyoming L.P., (iv) that all conditions to Permitted Transfers (as defined in the Partnership Agreement) in Sections 10.3(c), 10.3(d) and 11.2(b)(ii) of the Partnership Agreement have been waived and (v) that all conditions in Section 10.6 of the Partnership Agreement for the admission of Buyer as a general partner of OCI Wyoming L.P. have been satisfied or waived;

(c) a duly executed instrument assigning the OCI Wyoming LP Interest to Buyer (the “ Assignment Agreement ”);

(d) stock certificates representing the OCI Wyoming Co. Interests, duly endorsed in the name of Buyer or with stock powers executed in blank;

(e) an amendment to the Partnership Agreement updating the names and Percentage Interests (as defined in the Partnership Agreement) of the General Partners (as defined in the Partnership Agreement);

(f) a written consent of each of the partners of OCI Wyoming L.P. consenting to the sale of the Purchased Interests to Buyer;

(g) an opinion of counsel addressed to OCI Wyoming L.P. in a form acceptable to OCI Wyoming L.P. and the partners of OCI Wyoming L.P. to the effect that the sale of the Purchased Interests to Buyer will not cause OCI Wyoming L.P. to terminate for federal income tax purposes or to be treated as an association taxable as a corporation for federal income tax purposes, or to fail to meet any condition precedent then in effect pursuant to an official pronouncement of the Internal Revenue Service confirming that OCI Wyoming L.P. will be treated as a partnership for federal tax purposes, whether or not such a ruling is being or has been requested, as required by the Partnership Agreement, or a waiver of such requirement in writing by OCI Wyoming L.P.;

 

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(h) resignations of the Sellers’ representatives on the Partnership Committee and any other committees of OCI Wyoming L.P.;

(i) resignation of Sellers’ representatives on the Board of Directors of OCI Wyoming Co.; and

(j) a consent of OCI Wyoming L.P. to the disclosure of the information described in Section 2.6(f) hereof and all other information requested by Sellers to confirm the Contingent Purchase Price Obligation Payment amount.

Section 6.2 Deliveries by Buyer at Closing. Simultaneously herewith, Buyer has delivered or caused to be delivered to Sellers a counterpart of the Assignment Agreement, duly executed by Buyer.

ARTICLE VII

TAX MATTERS

Section 7.1 Transfer Taxes . Sellers shall be responsible, jointly and severally, for the payment of all transfer, sales, use, real estate transfer, documentary, stamp, retailer occupation or other similar Taxes (collectively, the “ Transfer Taxes ”) which arise by reason of the consummation of the transactions contemplated by this Agreement, and Sellers shall be responsible for the timely remittance of the Transfer Taxes to the appropriate taxing jurisdictions. To the extent Transfer Taxes are actually collected from Buyer, Sellers agree to reduce the Purchase Price by the amount of Transfer Taxes collected from Buyer and, if no amount of the Purchase Price is then due from Buyer, Sellers shall remit to Buyer upon demand an amount equal to such Purchase Price reduction.

Section 7.2 Cooperation . Buyer and Sellers shall cooperate fully as and to the extent reasonably requested by the other party and at the requesting Party’s expense, in connection with the filing of Tax Returns and any audit, litigation, or other proceeding (each a “ Tax Proceeding ”) with respect to Taxes imposed on or with respect to the assets, operations or activities of the Companies. Such cooperation shall include the retention and (upon the other Party’s request) the provision of records and information in such Party’s possession or control that are reasonably relevant to such Tax Proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.

ARTICLE VIII

INDEMNIFICATION

Section 8.1 Indemnities of the Sellers.

(a) Seller Indemnified Liabilities . Subject to the provisions of this Article VIII , from and after the Closing, each of the Sellers shall jointly and severally indemnify, defend and hold harmless Buyer, each of Buyer’s Affiliates, and their respective directors, stockholders, members, managers, officers, partners, employees, agents, consultants, attorneys,

 

30


representatives, successors, transferees and assignees (collectively, the “ Buyer Indemnified Parties ”) from, against and in respect of any Damages or Claims that arise out of, relate to or result from any of the following described matters (herein collectively referred to as the “ Seller Indemnified Liabilities ,” and individually as a “ Seller Indemnified Liability ”): (i) any representation or warranty made by any Seller in this Agreement not having been true and correct as of the Closing (without giving effect to any qualifier as to “materiality” or “Material Adverse Effect” or words of similar meaning set forth therein); provided that the text of any representation or warranty that refers to a specific date shall be deemed to continue to refer to such date, (ii) any breach by any Seller of any covenant or obligation of such Seller in this Agreement, (iii) any Pre-Closing GP Liability and (iv) any Pre-Closing Taxes.

(b) Time Limitations . Notwithstanding anything to the contrary in this Agreement, in no event shall any of the Buyer Indemnified Parties be permitted to make any Claim under Section 8.1(a) unless such Claim is first made to Sellers on or prior to the one-year anniversary of the Closing Date; provided, however, that such survival period shall not apply to any Claim under Section 8.1(a)(i) relating to the breach of any representation or warranty contained in Sections 3.1 (Organization), 3.2 (Authority; Enforceability), 3.3 (No Conflicts; Consents and Approvals), 3.4 (Capitalization; Ownership), or 3.22 (Brokers’ Fees) or any Claim under Section 8.1(a)(ii) , Section 8.1(a)(iii) or Section 8.1(a)(iv) (which Claim, in any such case, may be asserted indefinitely).

(c) Caps . Notwithstanding anything to the contrary in Section 8.1(a) , in no event shall the Sellers be required to make payments in respect of Seller Indemnified Liabilities in the aggregate that exceed 25% of the Purchase Price; provided, however, that the Sellers’ liability for any Seller Indemnified Liability will not be limited as set forth in this Section 8.1(c) if such Seller Indemnified Liability (i) relates to a breach of any representation or warranty contained in Sections 3.1 (Organization), 3.2 (Authority; Enforceability); 3.3 (No Conflicts; Consents and Approvals), 3.4 (Capitalization; Ownership) or 3.22 (Brokers’ Fees) or (ii) arises pursuant to Section 8.1(a)(ii) , 8.1(a)(iii) or 8.1(a)(iv) .

(d) Claim Deductible . Notwithstanding anything to the contrary in Section 8.1(a) , Sellers shall not have any indemnification obligations for Seller Indemnified Liabilities under Section 8.1(a)(i) unless the aggregate amount of all such Seller Indemnified Liabilities exceeds 2.5% of the Purchase Price (the “ Deductible ”), in which case Seller shall be liable only for Seller Indemnified Liabilities in excess of the Deductible; provided, however, that such Deductible will not apply to any Seller Indemnified Liabilities relating to the breach of any representation or warranty contained in Sections 3.1 (Organization), 3.2 (Authority; Enforceability), 3.3 (No Conflicts; Consents and Approvals), 3.4 (Capitalization; Ownership) or 3.22 (Brokers’ Fees).

(e) Effect of Knowledge . No Buyer Indemnified Party shall be entitled to indemnification under this Article VIII with respect to any Seller Indemnified Liabilities arising out of or resulting from any event or circumstance relating to the inaccuracy or breach of any representation or warranty of any Seller, any breach of any covenant, agreement, obligation or undertaking of any Seller set forth in this Agreement if any Buyer Indemnified Party had Knowledge on or before the date of this Agreement of the existence of such event, circumstance or breach.

 

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Section 8.2 Indemnities of Buyer Parties.

(a) Buyer Parties’ Indemnified Liabilities . Subject to the provisions of this Article VIII , from and after the Closing, Buyer shall indemnify, defend and hold harmless the Sellers, the Sellers’ Affiliates, and their respective directors, stockholders, members, managers, officers, partners, employees, agents, consultants, attorneys, representatives, successors, transferees and assignees (collectively, the “ Seller Indemnified Parties ”) from, against and in respect of any Damages or Claims that arise out of, relate to or result from any of the following described matters (herein collectively referred to as the “ Buyer Indemnified Liabilities ”): (i) any representation or warranty made by Buyer or Parent in this Agreement not having been true and correct as of the Closing (without giving effect to any qualifier as to “materiality” or “Material Adverse Effect” or words of similar meaning set forth therein); provided that the text of any representation or warranty that refers to a specific date shall be deemed to continue to refer to such date, (ii) any breach by Buyer or Parent of any covenant or obligation of Buyer or Parent in this Agreement, or (iii) any obligation or liability arising out of, relating to, or in connection with the ownership of the Purchased Interests (A) to the extent arising from and after the Closing or (B) to the extent arising before the Closing if Buyer had Knowledge of such obligation or liability at or prior to the Closing (other than in any such case any Pre-Closing GP Liability, any Pre-Closing Taxes or any other matter for which any Buyer Indemnified Party is entitled to indemnification pursuant to Section 8.1 (taking into account, for the avoidance of doubt, Section 8.1(e) ).

(b) Time Limitation . Notwithstanding anything to the contrary in this Agreement, in no event shall any of the Seller Indemnified Parties be permitted to make any Claim under Section 8.2(a) unless such Claim is first made to the applicable Buyer Party on or prior to the one-year anniversary of the Closing Date; provided, however, that such survival period shall not apply to any Claim under Section 8.2(a)(i) relating to the breach of any representation or warranty contained in Sections 4.1 (Organization), 4.2 (Authority; Enforceability); 4.3 (No Conflicts; Consents and Approvals) or 4.7 (Brokers’ Fees) or any Claim under Section 8.2(a)(ii) or (iii)  (which Claim, if any such case, may be asserted indefinitely).

(c) Cap . Notwithstanding anything to the contrary in Section 8.2(a) , in no event shall the applicable Buyer Parties be required to make payments in respect of Buyer Indemnified Liabilities that exceed in the aggregate 25% of the Purchase Price; provided, however, that the applicable Buyer Party’s liability for any Buyer Indemnified Liability will not be limited as forth in this Section 8.2(c) if such Buyer Indemnified Liability (i) relates to a breach of any representation or warranty contained in Sections 4.1 (Organization), 4.2 (Authority; Enforceability); 4.3 (No Conflicts; Consents and Approvals) or 4.7 (Brokers’ Fees); or (ii) arises pursuant to Section 8.2(a)(ii) or (iii) .

 

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(d) Claim Deductible . Notwithstanding anything to the contrary in Section 8.2(a) , Buyer Parties shall not have any indemnification obligations for Buyer Indemnified Liabilities under Section 8.2(a)(i) unless the aggregate amount of all such Buyer Indemnified Liabilities exceeds the Deductible, in which case Buyer Parties shall be liable only for Buyer Indemnified Liabilities that are in excess of the Deductible; provided, however, that such Deductible will not apply to any Buyer Indemnified Liabilities relating to the breach of any representation or warranty contained in Sections 4.1 (Organization), 4.2 (Authority; Enforceability), 4.3 (No Conflicts; Consents and Approvals) or 4.7 (Brokers’ Fees).

(e) Effect of Knowledge . No Seller Indemnified Party shall be entitled to indemnification under this Article VIII with respect to any Buyer Indemnified Liabilities arising out of or resulting from any event or circumstance relating to the inaccuracy or breach of any representation or warranty of Buyer or Parent or any breach of any covenant, agreement, obligation or undertaking of Buyer or Parent set forth in this Agreement if any Seller Indemnified Party had Knowledge on or before the date of this Agreement of the existence of such event, circumstance or breach.

Section 8.3 Claim Procedures . Each party that desires to make a Claim for indemnification pursuant to this Article VIII (an “ Indemnified Party ”) shall provide notice (a “ Claim Notice ”) thereof in writing to Buyer (if the Indemnified Party is a Seller Indemnified Party) or to Sellers (if the Indemnified Party is a Buyer Indemnified Party) (“ Indemnifying Party ”), specifying the nature and basis for such Claim and a copy of all papers served with respect to such Claim (if any). For purposes of this Section 8.3 , receipt by a party of written notice of any Third-Party Claim that gives rise to a Claim on behalf of such party shall require prompt delivery of a Claim Notice to the Indemnifying Party of the receipt of such Third-Party Claim; provided, however, that an Indemnified Party’s failure to send or delay in sending a Claim Notice shall not relieve an Indemnifying Party from liability hereunder with respect to such Claim except to the extent and only to the extent the Indemnifying Party is materially prejudiced by such failure or delay.

Section 8.4 Recovery . An Indemnified Party shall be entitled to seek recovery under any provisions of this Agreement that maximize its recovery (e.g., if Damages would be time barred under Section 8.1(b) if a Claim were made under one provision but would not be time barred if made under another provision, then the Indemnified Party may seek recovery under the provision that is not time barred).

Section 8.5 Survival . Except to the extent expressly limited by this Agreement, the representations, warranties, covenants, and indemnities set forth in this Agreement shall survive the Closing.

Section 8.6 Control of Third-Party Claims.

(a) In the event of the assertion of any Third-Party Claim, the Indemnifying Party, at its option, may assume (with legal counsel reasonably acceptable to the Indemnified Party) at its sole cost and expense the defense of such Third-Party Claim if it acknowledges to the Indemnified Party in writing its obligations to indemnify the Indemnified Party with respect to all elements of such Third-Party Claim and may assert any defense of the Indemnified Party or the Indemnifying Party; provided that the Indemnified Party shall have the right at its own expense to participate (but not control) jointly with the Indemnifying Party in the defense of any

 

33


such Third-Party Claim. If the Indemnifying Party elects to undertake the defense of any Third-Party Claim hereunder, the Indemnified Party shall cooperate with the Indemnifying Party in the defense or settlement of the Third-Party Claim, including providing access to information, making documents available for inspection and copying, and making employees available for interviews, depositions and trial. The Indemnifying Party shall not be entitled to settle any Third-Party Claim without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, conditioned or delayed.

(b) If the Indemnifying Party, by the 30th day after receipt of written notice of any Third-Party Claim (or, if earlier, by the tenth day preceding the day on which an answer or other pleading must be served in order to prevent judgment by default in favor of the Person asserting such Third-Party Claim) does not assume actively and in good faith the defense of any such Third-Party Claim or action resulting therefrom, the Indemnified Party may, at the Indemnifying Party’s expense, defend against such Claim or litigation, after giving written notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and the Indemnifying Party shall be entitled to participate in (but not control) the defense of such action, with its counsel and at its own expense. The Indemnified Party shall not settle or compromise any Third-Party Claim for which it is entitled to indemnification hereunder, without the prior written consent of the Indemnifying Party (which shall not be unreasonably withheld, conditioned or delayed).

(c) Notwithstanding anything in this Section 8.6 to the contrary, Buyer shall in all cases be entitled to control the defense of a Third-Party Claim if Buyer reasonably believes (i) such Third-Party Claim could result in liabilities that, taken together with other then-outstanding Claims by Buyer under this Agreement, could exceed the remaining potential Damages payable by the Sellers under this Agreement or (ii) such Third-Party Claim would materially and adversely affect in any material respect Buyer and its Affiliates, taken as a whole, other than as a result of money damages or if injunctive or other non-monetary relief has been sought against Buyer or its Affiliates.

Section 8.7 Express Negligence THE PARTIES HERETO INTEND THAT THE INDEMNITIES SET FORTH IN THIS ARTICLE VIII BE CONSTRUED AND APPLIED AS WRITTEN ABOVE, NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE CONTRARY. WITHOUT LIMITING THE FOREGOING, BUT LIMITED TO THE EXTENT PROVIDED ABOVE, SUCH INDEMNITIES SHALL APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE” OR SIMILAR RULE THAT WOULD DENY COVERAGE BASED ON AN INDEMNIFIED PARTY’S SOLE OR CONCURRENT, ACTIVE OR PASSIVE NEGLIGENCE OR GROSS NEGLIGENCE. IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED ABOVE, THE INDEMNITIES SET FORTH IN THIS ARTICLE VIII SHALL APPLY TO AN INDEMNIFIED PARTY’S SOLE OR CONCURRENT, ACTIVE OR PASSIVE NEGLIGENCE OR GROSS NEGLIGENCE. THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

 

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Section 8.8 Exclusive Remedy . In the absence of common law fraud, the indemnification provisions in this Article VIII will be the sole and exclusive remedy and recourse for any breach of this Agreement by Buyer or the Sellers, except as expressly provided herein. Notwithstanding the foregoing, Buyer and Sellers shall be entitled to seek specific performance pursuant to Section 9.13 .

Section 8.9 Non-Recourse . No Party shall have recourse whatsoever under this Agreement against any of the Representatives of the other Parties (including for such purposes, the Representatives of any Affiliate of a Party). Without limiting the generality of the foregoing, Buyer, on behalf of itself and its Representatives, and each Seller, on behalf of itself and its Representatives, each hereby fully and irrevocably waive any right, claim or entitlement whatsoever against such Representatives relating to any and all Damages suffered or incurred by any of them arising from, based upon, related to, or associated with this Agreement or the transactions contemplated by this Agreement (including any breach, termination or failure to consummate such transactions) in each case whether based on contract, tort, strict liability other laws or otherwise and whether by piercing of the corporate veil, by claim on behalf of or by a Party or other Person or otherwise.

Section 8.10 Characterization of Indemnification Payments . Any payment of amounts owing by an Indemnifying Party shall be treated as an adjustment to the Purchase Price, except as otherwise required by applicable Law.

ARTICLE IX

MISCELLANEOUS

Section 9.1 Notices . All notices, requests and other communications to any Party pursuant to this Agreement shall be in writing (including facsimile transmission) and shall be given,

if to Buyer Parties, to:

NRP Trona LLC

c/o NRP (Operating) LLC

601 Jefferson, Suite 3600

Houston, TX 77002

Attention: Vice President and General Counsel

Facsimile: 713-751-7517

with a copy (which shall not constitute notice) to:

Vinson & Elkins LLP

666 Fifth Avenue, 26 th Floor

New York, New York 10103-0040

Attention: Caroline Blitzer Philips

Facsimile: 917-849-5317

 

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if to Sellers, to:

Anadarko Holding Company

c/o Anadarko Petroleum Corporation

1201 Lake Robbins Drive

The Woodlands, Texas 77380

Attention: Vice President, Corporate Development

Facsimile: 832-636-5889

with a copy (which shall not constitute notice) to:

Anadarko Holding Company

c/o Anadarko Petroleum Corporation

1201 Lake Robbins Drive

The Woodlands, Texas 77380

Attention: Deputy General Counsel

Facsimile: 832-646-0574

or such other address or facsimile number as such Party may hereafter specify in writing for the purpose by notice to the other Parties. All such notices, requests and other communications shall be deemed duly given when delivered personally (including by courier or overnight courier with confirmation), via facsimile (with confirmation) or delivered by an overnight courier (with confirmation), if, in any such case, confirmation is obtained prior to 5:00 p.m. local time in the place of receipt and such day is a Business Day. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day.

Section 9.2 Amendments and Waivers .

(a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each Party to this Agreement, or in the case of a waiver, by the Party against whom the waiver is to be effective.

(b) No failure or delay by any Party in exercising any right, power or privilege in connection with this Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. Subject to Section 8.8 , the rights and remedies provided in this Agreement shall be cumulative and not exclusive of any rights or remedies provided by Law.

Section 9.3 Interim Capital Contributions and Distributions . The Parties expressly acknowledge and agree that notwithstanding anything to the contrary contained herein, (a) any capital contribution otherwise required to be made by Sellers to the Companies prior to the Closing pursuant to the Organizational Documents of the Companies shall be made by Sellers and (b) any distribution otherwise required to be made by the Companies to Sellers prior to the Closing pursuant to the Organizational Documents of the Companies shall be made to Sellers. Buyer shall in no event have any obligation to make any such capital contribution or right to receive any such distribution; provided, however, that the Purchase Price will be adjusted for such capital contributions or distributions pursuant to Article II .

 

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Section 9.4 Expenses . Except as otherwise provided herein, all costs and expenses incurred in connection with this Agreement shall be paid by the Party incurring such cost or expense.

Section 9.5 Liability . All obligations of the Sellers under this Agreement and the other Transaction Documents shall be joint and several.

Section 9.6 Successors and Assigns; Assignment . The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided that, no Party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of each other Party, except that Buyer may assign its rights or obligations under this Agreement to an Affiliate of Buyer. In the event Buyer assigns its obligations under this Agreement to an Affiliate, Buyer shall remain primarily liable for such obligations so assigned.

Section 9.7 Governing Law . This Agreement shall be governed by and construed in accordance with the law of the State of Texas, without regard to the conflicts of law rules thereof.

Section 9.8 Consent to Venue and Jurisdiction; Waiver of Jury Trial .

(a) The Parties agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the Southern District of Texas or any Texas State court sitting in Harris County, Texas, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in Harris County, Texas, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

(b) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

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Section 9.9 Counterparts; Effectiveness; Third-Party Beneficiaries . This Agreement may be signed in any number of counterparts (including facsimile and electronic transmission counterparts), each of which shall be an original, with the same effect as if the signatures to this Agreement were upon the same instrument. This Agreement shall become effective when each Party shall have received a counterpart of this Agreement signed by the other Parties. Until and unless each Party has received a counterpart of this Agreement signed by the other Parties, this Agreement shall have no effect and no Party shall have any right or obligation under this Agreement (whether by virtue of any other oral or written agreement or other communication). No provision of this Agreement is intended to confer any rights, benefits, remedies, obligations, or liabilities upon any Person other than (i) the Parties and their respective successors and permitted assigns and (ii) solely for the purposes of Article VIII , the Seller Indemnified Parties and the Buyer Indemnified Parties.

Section 9.10 Entire Agreement . This Agreement constitutes the entire agreement among the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, among the Parties with respect to the subject matter of this Agreement.

Section 9.11 Severability . If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any Party. Upon such a determination, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the fullest extent possible.

Section 9.12 Disclosure Schedules . Sellers have set forth information on the Disclosure Schedules that correspond to the sections of this Agreement to which each such Schedule relates. A matter set forth in one section of the Disclosure Schedules need not be set forth in any other section so long as its relevance to such other section of the Disclosure Schedules or section of this Agreement is reasonably apparent. The Parties acknowledge and agree that (a) the Disclosure Schedules may include certain items and information solely for informational purposes for the convenience of Buyer and (b) the disclosure by Sellers of any matter in the Disclosure Schedules shall not be deemed to constitute an acknowledgment by Sellers that the matter is required to be disclosed by the terms of this Agreement or that the matter is material.

Section 9.13 Specific Performance . The Parties agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur if any provision of this Agreement were not performed in accordance with the terms of this Agreement and that the Parties shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent breaches (or threatened breaches) of this Agreement and to enforce specifically the performance of the terms and provisions of this

 

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Agreement, this being in addition to any other remedy to which they are entitled at law or in equity. Any Party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.

Section 9.14 No Presumption Against Drafting Party . Each Party has fully participated in the negotiation and drafting of this Agreement. If an ambiguity, question or intent or question of interpretation arises, this Agreement must be construed as if drafted jointly, and there must not be any presumption, inference or conclusion drawn against any Party by virtue of the fact that its representative has authored this Agreement or any portion hereof.

[ Signature Page Follows ]

 

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized officers as of the date first written above.

 

SELLERS:
ANADARKO HOLDING COMPANY
By:   /s/ Robert G. Gwin
Name: Robert G. Gwin
Title: Senior Vice President and Chief Financial Officer

 

BIG ISLAND TRONA COMPANY
By:   /s/ D. Clay Bretches
Name: D. Clay Bretches
Title: Vice President

 

SIGNATURE PAGE TO PURCHASE AGREEMENT


BUYER:
NRP TRONA LLC
By: NRP (OPERATING) LLC , its Sole Member
By:   /s/ Dwight L. Dunlap
Name: Dwight L. Dunlap
Title: Chief Financial Officer

 

PARENT:
NRP (OPERATING) LLC
By:   /s/ Dwight L. Dunlap
Name: Dwight L. Dunlap
Title: Chief Financial Officer

 

SIGNATURE PAGE TO PURCHASE AGREEMENT

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

NATURAL RESOURCE PARTNERS L.P.

AND

THE INVESTORS NAMED ON SCHEDULE A HERETO


TABLE OF CONTENTS

 

ARTICLE I DEFINITIONS

     1   

Section 1.01 Definitions

     1   

Section 1.02 Registrable Securities

     2   

ARTICLE II REGISTRATION RIGHTS

     3   

Section 2.01 Registration

     3   

Section 2.02 Delay Rights

     3   

Section 2.03 Sale Procedures

     4   

Section 2.04 Cooperation by Holders

     6   

Section 2.05 Expenses

     6   

Section 2.06 Indemnification

     7   

Section 2.07 Rule 144 Reporting

     9   

Section 2.08 Transfer or Assignment of Registration Rights

     9   

ARTICLE III MISCELLANEOUS

     10   

Section 3.01 Communications

     10   

Section 3.02 Successor and Assigns

     10   

Section 3.03 Assignment of Rights

     10   

Section 3.04 Specific Performance

     11   

Section 3.05 Counterparts

     11   

Section 3.06 Headings

     11   

Section 3.07 Governing Law

     11   

Section 3.08 Severability of Provisions

     11   

Section 3.09 Entire Agreement

     11   

Section 3.10 Amendment

     11   

Section 3.11 No Presumption

     11   

Section 3.12 Obligations Limited to Parties to Agreement

     12   

Section 3.13 Independent Nature of Investor’s Obligations

     12   

Section 3.14 Interpretation

     12   

Schedule A – Investor List; Notice and Contact Information

  

 

i


REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT (this “ Agreement ”) is made and entered into as of January 23, 2013, by and among Natural Resource Partners L.P., a Delaware limited partnership (the “ Partnership ”), and each of the Persons set forth on Schedule A to this Agreement (each, an “ Investor ” and collectively, the “ Investors ”).

WHEREAS, this Agreement is made in connection with the Closing of the issuance and sale of the Purchased Units pursuant to the Common Unit Purchase Agreement, dated as of January 23, 2013, by and among the Partnership and the Investors (the “ Unit Purchase Agreement ”); and

WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Investors pursuant to the Unit Purchase Agreement.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each party hereto, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.01 Definitions . Capitalized terms used herein without definition shall have the meanings given to them in the Unit Purchase Agreement. The terms set forth below are used herein as so defined:

Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

Agreement ” has the meaning specified therefor in the introductory paragraph of this Agreement.

Closing Date ” means the date of the closing of the sale of the Purchased Units pursuant to the Unit Purchase Agreement.

Commission ” means the U.S. Securities and Exchange Commission.

Effectiveness Period ” has the meaning specified therefor in Section 2.01(a) of this Agreement.

General Partner ” means NRP (GP) LP, a Delaware limited partnership, whose general partner is GP Natural Resource Partners LLC, a Delaware limited liability company.

Holder ” means the record holder of any Registrable Securities.


Investor ” and “ Investors ” have the meanings specified therefor in the introductory paragraph of this Agreement.

Losses ” has the meaning specified therefor in Section 2.06(a) of this Agreement.

Partnership ” has the meaning specified therefor in the introductory paragraph of this Agreement.

Person ” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

Registrable Securities ” means the Common Units acquired by the Investors pursuant to the Unit Purchase Agreement.

Registration Expenses ” has the meaning specified therefor in Section 2.05(b) of this Agreement.

Registration Statement ” has the meaning specified therefor in Section 2.01(a) of this Agreement.

Selling Expenses ” has the meaning specified therefor in Section 2.05(b) of this Agreement.

Selling Holder ” means a Holder who is selling Registrable Securities pursuant to a registration statement.

Selling Holder Indemnified Persons ” has the meaning specified therefor in Section 2.06(a) of this Agreement.

Unit Purchase Agreement ” has the meaning specified therefor in the recitals of this Agreement.

Section 1.02 Registrable Securities . Any Registrable Security will cease to be a Registrable Security (a) when a registration statement covering such Registrable Security becomes or has been declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective registration statement; (b) when such Registrable Security has been disposed of pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities Act; (c) when such Registrable Security is held by the Partnership or one of its subsidiaries; (d) when such Registrable Security has been sold or disposed of in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of such securities pursuant to Section 2.08 hereof; or (e) when such Registrable Security becomes eligible for resale without restriction and without the need for current public information pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities Act.

 

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ARTICLE II

REGISTRATION RIGHTS

Section 2.01 Registration . Effectiveness Deadline . No later than 90 days following the Closing Date, the Partnership shall prepare and file a registration statement under the Securities Act to permit the public resale of Registrable Securities then outstanding from time to time as permitted by Rule 415 of the Securities Act with respect to all of the Registrable Securities (the “ Registration Statement ”). The Registration Statement filed pursuant to this Section 2.01(a) shall be on such appropriate registration form of the Commission as shall be selected by the Partnership so long as it permits the continuous offering of the Registrable Securities pursuant to Rule 415 of the Securities Act or such other rule as is then applicable at the then prevailing market prices. The Partnership shall use its commercially reasonable efforts to cause the Registration Statement to become effective no later than 180 days following the Closing Date. Any Registration Statement shall provide for the resale pursuant to any method or combination of methods legally available to, and requested by, the Holders of any and all Registrable Securities covered by such Registration Statement. The Partnership shall use its commercially reasonable efforts to cause the Registration Statement filed pursuant to this Section 2.01(a) to be effective, supplemented and amended to the extent necessary to ensure that it is available for the resale of all Registrable Securities by the Holders until the date when all Registrable Securities covered by such Registration Statement have ceased to be Registrable Securities (the “ Effectiveness Period ”). The Registration Statement when effective (including the documents incorporated therein by reference) will comply as to form in all material respects with all applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained in such Registration Statement, in the light of the circumstances under which a statement is made). As soon as practicable following the date that the Registration Statement becomes effective, but in any event within two (2) Business Days of such date, the Partnership shall provide the Holders with written notice of the effectiveness of the Registration Statement.

Section 2.02 Delay Rights . Notwithstanding anything to the contrary contained herein, the Partnership may, upon written notice to any Selling Holder whose Registrable Securities are included in the Registration Statement or other registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any prospectus which is a part of the Registration Statement or other registration statement (in which event the Selling Holder shall discontinue sales of the Registrable Securities pursuant to the Registration Statement or other registration statement contemplated by this Agreement but may settle any previously made sales of Registrable Securities) if (a) the Partnership is pursuing an acquisition, merger, reorganization, disposition or other similar transaction and the Partnership determines in good faith that the Partnership’s ability to pursue or consummate such a transaction would be materially adversely affected by any required disclosure of such transaction in the Registration Statement or other registration statement or (b) the Partnership has experienced some other material non-public event the disclosure of which at such time, in the good faith judgment of the Partnership, would materially adversely affect the Partnership; provided , however , in no event shall the Selling Holders be suspended from selling Registrable Securities pursuant to the

 

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Registration Statement or other registration statement for a period that exceeds an aggregate of 60 days in any 180-day period or 105 days in any 365-day period, in each case, exclusive of days covered by any lock-up agreement executed by a Selling Holder in connection with any underwritten offering. Upon disclosure of such information or the termination of the condition described above, the Partnership shall provide prompt notice to the Selling Holders whose Registrable Securities are included in the Registration Statement, and shall promptly terminate any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated in this Agreement.

Section 2.03 Sale Procedures . In connection with its obligations under this Article II , the Partnership will, as expeditiously as possible:

(a) prepare and file with the Commission such amendments and supplements to the Registration Statement and the prospectus used in connection therewith as may be necessary to keep the Registration Statement effective for the Effectiveness Period and as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by the Registration Statement;

(b) furnish to each Selling Holder (i) as far in advance as reasonably practicable before filing the Registration Statement or any other registration statement contemplated by this Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete drafts of all such documents proposed to be filed (including exhibits and each document incorporated by reference therein to the extent then required by the rules and regulations of the Commission), and provide each such Selling Holder the opportunity to object to any information pertaining to such Selling Holder and its plan of distribution that is contained therein and make the corrections reasonably requested by such Selling Holder with respect to such information prior to filing the Registration Statement or such other registration statement or supplement or amendment thereto, and (ii) such number of copies of the Registration Statement or such other registration statement and the prospectus included therein and any supplements and amendments thereto as such Selling Holder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities covered by such Registration Statement or other registration statement;

(c) if applicable, use its commercially reasonable efforts to register or qualify the Registrable Securities covered by the Registration Statement or any other registration statement contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the Selling Holders shall reasonably request; provided , however , that the Partnership will not be required to qualify generally to transact business in any jurisdiction where it is not then required to so qualify or to take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject;

(d) promptly notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered by any of them under the Securities Act, of (i) the filing of the Registration Statement or any other registration statement contemplated by this Agreement or any prospectus or prospectus supplement to be used in connection therewith, or any amendment or supplement thereto, and, with respect to such Registration Statement or any other registration statement or any post-effective amendment thereto, when the same has become effective; and

 

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(ii) the receipt of any written comments from the Commission with respect to any filing referred to in clause (i) and any written request by the Commission for amendments or supplements to the Registration Statement or any other registration statement or any prospectus or prospectus supplement thereto;

(e) immediately notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of (i) the happening of any event as a result of which the prospectus or prospectus supplement contained in the Registration Statement or any other registration statement contemplated by this Agreement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained therein, in the light of the circumstances under which a statement is made); (ii) the issuance or express threat of issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any other registration statement contemplated by this Agreement, or the initiation of any proceedings for that purpose; or (iii) the receipt by the Partnership of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the applicable securities or blue sky laws of any jurisdiction. Following the provision of such notice, the Partnership agrees to as promptly as practicable amend or supplement the prospectus or prospectus supplement or take other appropriate action so that the prospectus or prospectus supplement does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing and to take such other commercially reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings related thereto;

(f) upon request and subject to appropriate confidentiality obligations, furnish to each Selling Holder copies of any and all transmittal letters or other correspondence with the Commission or any other governmental agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign securities exchange) relating to such offering of Registrable Securities;

(g) otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

(h) cause all such Registrable Securities registered pursuant to this Agreement to be listed on each securities exchange or nationally recognized quotation system on which similar securities issued by the Partnership are then listed;

(i) use its commercially reasonable efforts to cause the Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Partnership to enable the Selling Holders to consummate the disposition of such Registrable Securities;

(j) provide a transfer agent and registrar for all Registrable Securities covered by such registration statement not later than the effective date of such registration statement;

 

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(k) enter into customary agreements and take such other actions as are reasonably requested by the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition of such Registrable Securities; and

(l) if requested by a Selling Holder, (i) incorporate in a prospectus supplement or post-effective amendment such information as such Selling Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering and (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment.

The Partnership will not name a Holder as an underwriter as defined in Section 2(a)(11) of the Securities Act in any Registration Statement without such Holder’s consent. If the staff of the Commission requires the Partnership to name any Holder as an underwriter as defined in Section 2(a)(11) of the Securities Act, and such Holder does not consent thereto, then such Holder’s Registrable Securities shall not be included on the Registration Statement and the Partnership shall have no further obligations hereunder with respect to Registrable Securities held by such Holder.

Each Selling Holder, upon receipt of notice from the Partnership of the happening of any event of the kind described in subsection (e) of this Section 2.03 , shall forthwith discontinue offers and sales of the Registrable Securities by means of a prospectus or prospectus supplement until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by subsection (e) of this Section 2.03 or until it is advised in writing by the Partnership that the use of the prospectus may be resumed and has received copies of any additional or supplemental filings incorporated by reference in the prospectus, and, if so directed by the Partnership, such Selling Holder will deliver to the Partnership (at the Partnership’s expense) all copies in their possession or control, other than permanent file copies then in such Selling Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice.

Section 2.04 Cooperation by Holders . The Partnership shall have no obligation to include Registrable Securities of a Holder in the Registration Statement who has failed to timely furnish such information that the Partnership determines, after consultation with its counsel, is reasonably required in order for the registration statement or prospectus supplement, as applicable, to comply with the Securities Act.

Section 2.05 Expenses .

(a) Expenses . The Partnership will pay all Registration Expenses as determined in good faith. Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any sale of its Registrable Securities hereunder. In addition, except as otherwise provided in Section 2.06 hereof, the Partnership shall not be responsible for legal fees incurred by Holders in connection with the exercise of such Holders’ rights hereunder.

 

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(b) Certain Definitions . “ Registration Expenses ” means all expenses incident to the Partnership’s performance under or compliance with this Agreement to effect the registration of Registrable Securities on the Registration Statement pursuant to Section 2.01(a) and the disposition of such Registrable Securities, including, without limitation, all registration, filing, securities exchange listing and NYSE fees, all registration, filing, qualification and other fees and expenses of complying with securities or blue sky laws, fees of transfer agents and registrars, all word processing, duplicating and printing expenses, any transfer taxes and the fees and disbursements of counsel and independent public accountants for the Partnership. “ Selling Expenses ” means all selling commissions or similar fees or arrangements allocable to the sale of the Registrable Securities.

Section 2.06 Indemnification .

(a) By the Partnership . In the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Partnership will indemnify and hold harmless each Selling Holder thereunder, its directors, officers, managers, employees and agents and each Person, if any, who controls such Selling Holder within the meaning of the Securities Act and the Exchange Act, and its directors, officers, employees or agents (collectively, the “ Selling Holder Indemnified Persons ”), against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees and expenses) (collectively, “ Losses ”), joint or several, to which such Selling Holder Indemnified Person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact (in the case of any prospectus, in light of the circumstances under which such statement is made) contained in the Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made) not misleading, and will reimburse each such Selling Holder Indemnified Person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such Loss or actions or proceedings; provided , however , that the Partnership will not be liable in any such case if and to the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by or on behalf of such Selling Holder Indemnified Person in writing specifically for use in the Registration Statement or such other registration statement, or prospectus supplement, as applicable. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Selling Holder Indemnified Person, and shall survive the transfer of such securities by such Selling Holder.

(b) By Each Selling Holder . Each Selling Holder agrees severally and not jointly to indemnify and hold harmless the Partnership, the General Partner, its directors, officers, employees and agents and each Person, if any, who controls the Partnership within the meaning of the Securities Act or of the Exchange Act, and its directors, officers, employees and agents, to the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only with respect to information regarding such Selling Holder furnished in writing by or on behalf of

 

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such Selling Holder expressly for inclusion in the Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus contained therein, or any amendment or supplement thereof; provided , however , that the liability of each Selling Holder shall not be greater in amount than the dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale of the Registrable Securities giving rise to such indemnification.

(c) Notice . Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability that it may have to any indemnified party other than under this Section 2.06 . In any action brought against any indemnified party, it shall notify the indemnifying party of the commencement thereof. The indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2.06 for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected; provided , however , that, (i) if the indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to the indemnified party or (ii) if the defendants in any such action include both the indemnified party and the indemnifying party and counsel to the indemnified party shall have concluded that there may be reasonable defenses available to the indemnified party that are different from or additional to those available to the indemnifying party, or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, then the indemnified party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other reasonable expenses related to such participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other provision of this Agreement, no indemnifying party shall settle any action brought against any indemnified party with respect to which such indemnified party is entitled to indemnification hereunder without the consent of the indemnified party, unless the settlement thereof imposes no liability or obligation on, and includes a complete and unconditional release from all liability of, the indemnified party.

(d) Contribution . If the indemnification provided for in this Section 2.06 is held by a court or government agency of competent jurisdiction to be unavailable to any indemnified party or is insufficient to hold them harmless in respect of any Losses, then each such indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of such indemnified party on the other in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations; provided , however , that in no event shall such Selling Holder be required to contribute an aggregate amount in excess of the dollar amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of Registrable

 

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Securities giving rise to such indemnification. The relative fault of the indemnifying party on the one hand and the indemnified party on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact has been made by, or relates to, information supplied by such party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph were to be determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to herein. The amount paid by an indemnified party as a result of the Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and other expenses reasonably incurred by such indemnified party in connection with investigating or defending any Loss that is the subject of this paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation.

(e) Other Indemnification . The provisions of this Section 2.06 shall be in addition to any other rights to indemnification or contribution that an indemnified party may have pursuant to law, equity, contract or otherwise.

Section 2.07 Rule 144 Reporting . With a view to making available the benefits of certain rules and regulations of the Commission that may permit the sale of the Registrable Securities to the public without registration, the Partnership agrees to use its commercially reasonable efforts to:

(a) make and keep public information regarding the Partnership available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times from and after the date hereof;

(b) file with the Commission in a timely manner all reports and other documents required of the Partnership under the Securities Act and the Exchange Act at all times from and after the date hereof; and

(c) so long as a Holder owns any Registrable Securities, furnish, unless otherwise available via EDGAR, to such Holder forthwith upon request a copy of the most recent annual or quarterly report of the Partnership, and such other reports and documents so filed as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such Holder to sell any such securities without registration.

Section 2.08 Transfer or Assignment of Registration Rights . The rights to cause the Partnership to register Registrable Securities granted to the Investors by the Partnership under this Article II may be transferred or assigned by any Investor to one or more transferees or assignees of Registrable Securities; provided , however , that (a) the transferee or assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of, such Investor, (b) the Partnership is given written notice prior to any said transfer or assignment, stating the name and address of each such transferee or assignee and identifying the securities with respect to which such registration rights are being transferred or assigned, and (c) each such transferee or assignee assumes in writing responsibility for its portion of the obligations of such Investor

 

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under this Agreement. In addition, if, after the effectiveness of the Registration Statement, an Investor distributes its Registrable Securities to its owners or such owners transfer such Registrable Securities to their respective Affiliates, pledgees, or donees (such persons, “Distributees”), the Investor will identify such Distributees to the Partnership in writing and the Partnership shall supplement or amend the Registration Statement to reflect such Distributees as “selling unitholders” thereunder so as to permit the sale under the Registration Statement of the Registrable Securities by the then holders thereof, regardless of whether such Registrable Securities continue to be Registrable Securities when owned by such owners, Affiliates, pledgees or donees, for so long as the person that controls the Investor as of the date hereof continues to own an interest in the General Partner; provided , that the Partnership shall not be required to pay the Registration Expenses associated with more than one such amendment or supplement in any six (6) month period.

ARTICLE III

MISCELLANEOUS

Section 3.01 Communications . All notices and other communications provided for or permitted hereunder shall be made in writing by facsimile, electronic mail, courier service or personal delivery:

(a) if to an Investor:

To the respective address listed on Schedule A hereof

(b) if to a transferee of an Investor, to such Holder at the address provided pursuant to Section 2.08 above; and

(c)     if to the Partnership:

Natural Resource Partners L.P.

601 Jefferson, Suite 3600

Houston, Texas 77002

Attention: Wyatt L. Hogan

Telephone: 713.751.7507

Email: whogan@nrplp.com

All such notices and communications shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or sent via Internet electronic mail; and when actually received, if sent by courier service or any other means.

Section 3.02 Successor and Assigns . This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties, including subsequent Holders of Registrable Securities to the extent permitted herein.

Section 3.03 Assignment of Rights . All or any portion of the rights and obligations of any Investor under this Agreement may be transferred or assigned by such Investor only in accordance with Section 2.08 hereof.

 

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Section 3.04 Specific Performance . Damages in the event of breach of this Agreement by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed that each such Person, in addition to and without limiting any other remedy or right it may have, will have the right to an injunction or other equitable relief in any court of competent jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable relief. The existence of this right will not preclude any such Person from pursuing any other rights and remedies at law or in equity that such Person may have.

Section 3.05 Counterparts . This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

Section 3.06 Headings . The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

Section 3.07 Governing Law . THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF DELAWARE.

Section 3.08 Severability of Provisions . Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting or impairing the validity or enforceability of such provision in any other jurisdiction.

Section 3.09 Entire Agreement . This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the rights granted by the Partnership set forth herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

Section 3.10 Amendment . This Agreement may be amended only by means of a written amendment signed by the Partnership and the Holders of a majority of the then outstanding Registrable Securities; provided , however , that no such amendment shall materially and adversely affect the rights of any Holder hereunder without the consent of such Holder.

Section 3.11 No Presumption . If any claim is made by a party relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular party or its counsel.

 

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Section 3.12 Obligations Limited to Parties to Agreement . Each of the Parties hereto covenants, agrees and acknowledges that no Person other than the Investors (and their permitted transferees and assignees) and the Partnership shall have any obligation hereunder and that, notwithstanding that one or more of the Investors may be a corporation, partnership or limited liability company, no recourse under this Agreement or under any documents or instruments delivered in connection herewith or therewith shall be had against any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Investors or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Investors or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, as such, for any obligations of the Investors under this Agreement or any documents or instruments delivered in connection herewith or therewith or for any claim based on, in respect of or by reason of such obligation or its creation, except in each case for any transferee or assignee of an Investor hereunder.

Section 3.13 Independent Nature of Investor’s Obligations . The obligations of each Investor under this Agreement are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under this Agreement. Nothing contained herein, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose.

Section 3.14 Interpretation . Article and Section references to this Agreement, unless otherwise specified. All references to instruments, documents, contracts and agreements are references to such instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited to.” Whenever any determination, consent or approval is to be made or given by an Investor under this Agreement, such action shall be in such Investor’s sole discretion unless otherwise specified.

[Signature pages to follow]

 

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IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written.

 

NATURAL RESOURCE PARTNERS L.P.

By:

 

 

By:

 

NRP (GP) LP,

its General Partner

 

GP NATURAL RESOURCE PARTNERS LLC,

its General Partner

By:   /s/ Dwight L. Dunlap

Name: 

Title:

 

Dwight L. Dunlap

Chief Financial Officer

 

Signature Page to Registration Rights Agreement


Investor: Corbin J. Robertson, Jr.
By:   /s/ Corbin J. Robertson, Jr.

 

Signature Page to Registration Rights Agreement


Investor: Cutlass Collieries LLC
By:   /s/ Donald R. Holcomb
Name:    Donald R. Holcomb
Title:   Authorized Person

 

Signature Page to Registration Rights Agreement


Investor: Shadder Investments
By:  

Morian Management LLC,

its general partner

By:   /s/ S. Reed Morian
Name:    S. Reed Morian
Title:   Member

 

Signature Page to Registration Rights Agreement


Investor: H.R. Cullen Estate Trust for Corbin J.                 Robertson, Jr.
By:   /s/ W.E. Robertson
Name:    W.E. Robertson
Title:   Co-Trustee
 
By:   /s/ Carroll R. Ray
Name:    Carroll R. Ray
Title:   Co-Trustee
 
By:   /s/ Lillie T. Robertson
Name:   Lillie T. Robertson
Title:   Co-Trustee

 

Signature Page to Registration Rights Agreement


Investor: Peter Baumann
By:   /s/ Peter Baumann
 
Investor: Alison Baumann
By:   /s/ Alison Baumann

 

Signature Page to Registration Rights Agreement


Investor: Corbin J. Robertson, III
By:   /s/ Corbin J. Robertson, III
 

 

Signature Page to Registration Rights Agreement


Investor: William K. Robertson 2009 Family

                Trust

By:   /s/ Cathleen McVeigh

Name: Cathleen McVeigh

Title: Senior Vice President

 

Signature Page to Registration Rights Agreement


Investor: Christine R. Morenz 2009 Family

                Trust

By:   /s/ Cathleen McVeigh

Name: Cathleen McVeigh

Title: Senior Vice President

 

Signature Page to Registration Rights Agreement


Investor: William K. Robertson
By:   /s/ Willam K. Robertson
 

 

Signature Page to Registration Rights Agreement


Investor: Christine R. Morenz
By:   /s/ Christine R. Morenz
 

 

Signature Page to Registration Rights Agreement


Investor: Scott Riverbend Farm, Ltd.
By:   /s/ W.W. Scott, Jr.

Name: W.W. Scott, Jr.

Title: Authorized Person

 

Signature Page to Registration Rights Agreement


Investor: Corbin J. Robertson, Jr. 1953 Trust
By:   /s/ W.E. Robertson

Name: W.E. Robertson

Title: Co-Trustee

 

Signature Page to Registration Rights Agreement


Investor: Wilhelmina E. Robertson
By:   /s/ Wilhelmina E. Robertson
 

 

Signature Page to Registration Rights Agreement


Investor: Corbin J. Robertson III 2009 Family

                Trust

By:   /s/ Cathleen McVeigh

Name: Cathleen McVeigh

Title: Senior Vice President

 

Signature Page to Registration Rights Agreement


Investor: Colewood Properties, Inc.

By:   /s/ Carroll R. Ray

Name: Carroll R. Ray

Title: President

 

 

Signature Page to Registration Rights Agreement


Investor: CIII Capital Management, LLC

By:   /s/ Corbin J. Robertson, III

Name: Corbin J. Robertson, III

Title: Authorized Person

 

Signature Page to Registration Rights Agreement


Investor: Lillie T. Robertson
By:   /s/ Lillie T. Robertson
 

 

Signature Page to Registration Rights Agreement


Investor: Carroll R. Ray
By:   /s/ Carrol R. Ray
 

 

Signature Page to Registration Rights Agreement


Schedule A – Investor Name; Notice and Contact Information

 

Purchaser

  

Contact Information

Corbin J. Robertson, Jr.

   601 Jefferson, #3600, Houston, Texas 77002

Cutlass Collieries LLC

   3801 PGA Blvd., Suite 903, Palm Beach Gardens, Florida 33410

Shadder Investments

   300 Jackson Hill Street, Houston, Texas 77007

H.R. Cullen Estate Trust for Corbin J. Robertson, Jr.

   601 Jefferson, #3600, Houston, Texas 77002

Peter and Alison Baumann

   601 Jefferson, #4000, Houston, Texas 77002

Corbin J. Robertson, III

   601 Jefferson, #3600, Houston, Texas 77002

William K. Robertson 2009 Family Trust

   1100 N King Street, Wilmington, Delaware 19884

Christine R. Morenz 2009 Family Trust

   1100 N King Street, Wilmington, Delaware 19884

William K. Robertson

   601 Jefferson, #3600, Houston, Texas 77002

Christine R. Morenz

   601 Jefferson, #3600, Houston, Texas 77002

Scott Riverbend Farm, Ltd.

   2606 W Lane Dr., Houston, Texas 77027-4914

Corbin J. Robertson, Jr. 1953 Trust

   601 Jefferson, #3600, Houston, Texas 77002

Wilhelmina E. Robertson

   601 Jefferson, #4000, Houston, Texas 77002

Corbin J. Robertson III 2009 Family Trust

   1100 N King Street, Wilmington, Delaware 19884

Colewood Properties, Inc.

   601 Jefferson, #4000, Houston, Texas 77002

CIII Capital Management, LLC

   601 Jefferson, #3600, Houston, Texas 77002

Lillie T. Robertson

   601 Jefferson, #4000, Houston, Texas 77002

Carroll R. Ray

   601 Jefferson, #4000, Houston, Texas 77002

 

Schedule A to Registration Rights Agreement

Exhibit 10.1

 

 

 

COMMON UNIT PURCHASE AGREEMENT

by and among

NATURAL RESOURCE PARTNERS L.P.

and

THE PURCHASERS NAMED ON SCHEDULE A HERETO

 

 

 


TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

 

Section 1.1

  Definitions      1   
ARTICLE II   
AGREEMENT TO SELL AND PURCHASE   

Section 2.1

  Sale and Purchase      4   

Section 2.2

  Closing      4   

Section 2.3

  Deliveries by the Partnership      4   

Section 2.4

  Purchaser Deliveries      4   

Section 2.5

  Independent Nature of Purchasers’ Obligations and Rights      5   
ARTICLE III   
REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP   

Section 3.1

  Existence      5   

Section 3.2

  Purchased Units; Capitalization      5   

Section 3.3

  No Conflict      5   

Section 3.4

  Authority      6   

Section 3.5

  Approvals      6   

Section 3.6

  Compliance with Laws      6   

Section 3.7

  Due Authorization      7   

Section 3.8

  Valid Issuance; No Options or Preemptive Rights      7   

Section 3.9

  No Registration Rights      7   

Section 3.10

  Periodic Reports      7   

Section 3.11

  Litigation      7   

Section 3.12

  No Side Agreements      8   

Section 3.13

  No Registration Required      8   

Section 3.14

  No Integration      8   

Section 3.15

  MLP Status      8   
ARTICLE IV   
REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS   

Section 4.1

  Capacity, Authorization and Enforceability      8   

Section 4.2

  No Conflict      8   

Section 4.3

  Certain Fees      9   

Section 4.4

  No Side Agreements      9   

Section 4.5

  Investment      9   

Section 4.6

  Nature of Purchaser      9   

Section 4.7

  Restricted Securities      10   

Section 4.8

  Legend; Restrictive Notation      10   

 

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ARTICLE V   
COVENANTS   

Section 5.1

  Taking of Necessary Action      10   

Section 5.2

  Purchaser Lock-Up      10   
ARTICLE VI   
INDEMNIFICATION   

Section 6.1

  Indemnification by the Partnership      11   

Section 6.2

  Indemnification by Purchasers      11   

Section 6.3

  Indemnification Procedure      11   
ARTICLE VII   
MISCELLANEOUS   

Section 7.1

  Certain Special Allocations of Book and Taxable Income      12   

Section 7.2

  Interpretation and Survival of Provisions      13   

Section 7.3

  Survival of Provisions      13   

Section 7.4

  No Waiver; Modifications in Writing      13   

Section 7.5

  Binding Effect; Assignment      14   

Section 7.6

  Communications      14   

Section 7.7

  Removal of Legend      14   

Section 7.8

  Entire Agreement      15   

Section 7.9

  Governing Law      15   

Section 7.10

  Execution in Counterparts      15   

 

Schedule A

           List of Purchasers and Commitment Amounts

Schedule B

           Notice and Contact Information

Exhibit A

           Additional Limited Partner Certificate

 

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COMMON UNIT PURCHASE AGREEMENT

This COMMON UNIT PURCHASE AGREEMENT, dated as of January 23, 2013 (this “ Agreement ”), is by and among NATURAL RESOURCE PARTNERS L.P., a Delaware limited partnership (the “ Partnership ”), and each of the purchasers listed on Schedule A hereof (each a “ Purchaser ” and collectively, the “ Purchasers ”).

WHEREAS, the Partnership desires to issue and sell to the Purchasers, and each Purchaser desires to purchase from the Partnership, certain common units representing limited partner interests of the Partnership (“ Common Units ”) in accordance with the provisions of this Agreement; and

WHEREAS, the Partnership and the Purchasers are entering into a registration rights agreement (the “ Registration Rights Agreement ”), pursuant to which the Partnership is agreeing to provide the Purchasers with certain registration rights with respect to the Common Units acquired pursuant hereto.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Partnership and each of the Purchasers, severally and not jointly, hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions . As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:

Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

Agreement ” has the meaning set forth in the introductory paragraph.

Business Day ” means a day other than (i) a Saturday or Sunday or (ii) any day on which banks located in Houston, Texas are authorized or obligated to close.

Closing ” has the meaning specified in Section 2.2.

Closing Date ” has the meaning specified in Section 2.2.

Commission ” means the United States Securities and Exchange Commission.

Common Unit Price ” means $19.8173.


Common Units ” has the meaning specified in the recitals.

Delaware LP Act ” means the Delaware Revised Uniform Limited Partnership Act.

Exchange Act ” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.

General Partner ” means NRP (GP) LP, a Delaware limited partnership.

Governmental Authority ” means, with respect to a particular Person, any country, state, county, city and political subdivision in which such Person or such Person’s Property is located or that exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board, bureau or instrumentality of any of them and any monetary authority that exercises valid jurisdiction over any such Person or such Person’s Property. Unless otherwise specified, all references to Governmental Authority herein with respect to the Partnership mean a Governmental Authority having jurisdiction over the Partnership, its Subsidiaries or any of their respective Properties.

Indemnified Party ” has the meaning specified in Section 6.3.

Indemnifying Party ” has the meaning specified in Section 6.3.

Law ” means any federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule or regulation.

Lien ” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including any lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. For the purpose of this Agreement, a Person shall be deemed to be the owner of any Property that it has acquired or holds subject to a conditional sale agreement, or leases under a financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing.

Managing General Partner ” means GP Natural Resource Partners LLC, a Delaware limited liability company.

Material Adverse Effect ” means a material adverse effect on (i) the condition (financial or otherwise), business, prospects, assets or results of operations of the Partnership Entities and their Subsidiaries, taken as a whole, and (ii) the ability of the Partnership Entities to perform their obligations under the Operative Documents.

NYSE ” means The New York Stock Exchange, Inc.

Operating Company ” means NRP (Operating) LLC, a Delaware limited liability company.

 

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Operative Documents ” means, collectively, this Agreement, the Registration Rights Agreement and any amendments, supplements, continuations or modifications thereto.

Outstanding ” has the meaning set forth in the Partnership Agreement.

Partnership Agreement ” means the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership dated September 20, 2010, including any amendments thereto.

Partnership ” has the meaning set forth in the introductory paragraph.

Partnership Entities ” and each a “ Partnership Entity ” means the General Partner, the Managing General Partner, the Partnership, and the Operating Company.

Partnership Related Parties ” has the meaning specified in Section 6.2.

Person ” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other form of entity.

Per Unit Capital Amount ” has the meaning set forth in the Partnership Agreement.

Property ” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

Purchased Units ” means, with respect to a particular Purchaser, the number of Common Units equal to the aggregate Purchase Price set forth opposite such Purchaser’s name under the column titled “Purchase Price” set forth on Schedule A hereto divided by the Common Unit Price.

Purchase Price ” means, with respect to a particular Purchaser, the amount set forth opposite such Purchaser’s name under the column titled “Purchase Price” set forth on Schedule A hereto.

Purchaser ” and “ Purchasers ” have the meanings set forth in the introductory paragraph.

Purchaser Related Parties ” has the meaning specified in Section 6.1.

Registration Rights Agreement ” has the meaning set forth in the recitals hereto.

Representatives ” of any Person means the Affiliates, officers, directors, managers, employees, agents, counsel, accountants, investment bankers and other representatives of such Person.

Securities Act ” means the Securities Act of 1933, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.

Subsidiary ” has the meaning set forth in Rule 405 of the rules and regulations promulgated under the Securities Act.

 

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Unrealized Gain ” has the meaning set forth in the Partnership Agreement.

ARTICLE II

AGREEMENT TO SELL AND PURCHASE

Section 2.1 Sale and Purchase . Subject to the terms and conditions hereof, the Partnership hereby agrees to issue and sell to each Purchaser and each Purchaser hereby agrees, severally and not jointly, to purchase from the Partnership, its respective Purchased Units, and each Purchaser agrees, severally and not jointly, to pay the Partnership the Common Unit Price for each Purchased Unit. The obligations of each Purchaser under this Agreement are independent of the obligations of each other Purchaser, and the failure or waiver of performance by any Purchaser does not excuse performance by any other Purchaser or by the Partnership.

Section 2.2 Closing . Subject to the terms and conditions hereof, the consummation of the purchase and sale of the Purchased Units hereunder (the “ Closing ”) shall take place at the offices of Vinson & Elkins L.L.P., 1001 Fannin Street, Suite 2500, Houston, Texas, or such other location as mutually agreed by the parties, and upon the first Business Day on which the satisfaction or waiver of the conditions set forth in Sections 2.3, 2.4 and 2.5 has occurred (other than those conditions that are by their terms to be satisfied at the Closing) (the date of such closing, the “ Closing Date ”).

Section 2.3 Deliveries by the Partnership . At the Closing, subject to the terms and conditions hereof, the Partnership will deliver, or cause to be delivered, to each Purchaser:

(a) evidence of issuance of the Purchased Units credited to book-entry accounts maintained by the transfer agent, bearing the restrictive notation set forth in Section 4.8, and meeting the requirements of the Partnership Agreement, free and clear of any Liens, other than transfer restrictions under the Partnership Agreement and applicable federal and state securities laws;

(b) a certificate of the Secretary of State of the State of Delaware, dated a recent date, to the effect that each of the Partnership Entities is in good standing; and

(c) the Registration Rights Agreement.

Section 2.4 Purchaser Deliveries . At the Closing, subject to the terms and conditions hereof, each Purchaser will deliver, or cause to be delivered, to the Partnership:

(a) payment to the Partnership of the Purchase Price set forth opposite such Purchaser’s name under the column titled “Purchase Price” on Schedule A hereto by wire transfer of immediately available funds to an account designated by Partnership;

(b) the Registration Rights Agreement; and

(c) an application requesting admission as an Additional Limited Partner (as that term is defined in the Partnership Agreement) in substantially the form attached hereto as Exhibit A , which shall have been duly executed by such Purchaser.

 

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Section 2.5 Independent Nature of Purchasers’ Obligations and Rights . The obligations of each Purchaser under any Operative Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Operative Document. Nothing contained herein or in any other Operative Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Operative Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Operative Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP

The Partnership represents and warrants to each Purchaser as follows:

Section 3.1 Existence . Each of the Partnership Entities has been duly formed and is validly existing as a limited liability company or limited partnership, as the case may be, in good standing under the laws of its jurisdiction of formation with all limited liability company or limited partnership power and authority necessary to own or hold its properties and to conduct the businesses in which it is engaged, and, in the case of the Managing General Partner, to act as the general partner of the General Partner, and in the case of the General Partner, to act as the general partner of the Partnership.

Section 3.2 Purchased Units; Capitalization .

(a) The Purchased Units have those rights, preferences, privileges and restrictions governing the Common Units as set forth in the Partnership Agreement.

(b) As of the date hereof and prior to the issuance and sale of the Purchased Units, the issued and outstanding limited partner interests of the Partnership consist of 106,027,836 Common Units. All outstanding Common Units and the limited partner interests represented thereby have been duly authorized and validly issued in accordance with the Partnership Agreement and are fully paid (to the extent required under the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

(c) The Common Units are listed on the NYSE, and the Partnership has not received any notice of delisting. The Purchased Units have been approved for listing on the NYSE, subject to official notice of issuance.

Section 3.3 No Conflict . None of the offering, issuance and sale by the Partnership of the Purchased Units and the application of the proceeds therefrom, the execution, delivery and performance of the Operative Documents by the Partnership, or the consummation of the transactions contemplated hereby or thereby (i) conflicts or will conflict with, or constitutes or

 

5


will constitute a violation of, the certificate or agreement of limited partnership, certificate of formation, limited liability company agreement or other organizational documents of the Partnership Entities, (ii) conflicts or will conflict with, or constitutes or will constitute a breach or violation of or a default under (or an event that, with notice or lapse of time or both, would constitute such a breach or violation of or default under), any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which any Partnership Entity or any material Subsidiary of a Partnership Entity is a party, by which any of them is bound or to which any of their respective properties or assets is subject, (iii) violates or will violate any statute, law, ordinance, regulation, order, judgment, decree or injunction of any court or governmental agency or body to which any Partnership Entity or any material Subsidiary of a Partnership Entity, or any of their respective properties or assets may be subject or (iv) will result in the creation or imposition of any Lien upon any property or assets of any Partnership Entity or any material Subsidiary of any Partnership Entity, which conflicts, breaches, violations, defaults or Liens, in the case of clauses (ii), (iii) or (iv), would, individually or in the aggregate, have a Material Adverse Effect.

Section 3.4 Authority . The Partnership has all requisite power and authority to issue, sell and deliver the Purchased Units, in accordance with and upon the terms and conditions set forth in this Agreement and the Partnership Agreement. All partnership or limited liability company action, as the case may be, required to be taken by the Managing General Partner, the General Partner and the Partnership for the authorization, issuance, sale and delivery of the Purchased Units, the execution and delivery of the Operative Documents and the consummation of the transactions contemplated hereby and thereby has been validly taken. No approval from the holders of outstanding Common Units is required under the Partnership Agreement or the rules of the NYSE in connection with the Partnership’s issuance and sale of the Purchased Units to the Purchasers.

Section 3.5 Approvals . No permit, consent, approval, authorization, order, registration, filing or qualification (“ consent ”) of or with any court, governmental agency or body having jurisdiction over any of the Partnership Entities or any material Subsidiary of any Partnership Entity, or any of their respective properties is required in connection with the offering and sale of the Purchased Units in the manner contemplated by this Agreement, the execution, delivery and performance of this Agreement by the Partnership Entities, or the consummation of the transactions contemplated by this Agreement, except for such consents (i) required under the Securities Act and state securities or “Blue Sky” laws or (ii) that, if not obtained, would not, individually or in the aggregate, have a Material Adverse Effect.

Section 3.6 Compliance with Laws . As of the date hereof, neither the Partnership nor any of its Subsidiaries is in violation of any Law applicable to the Partnership or its Subsidiaries, except as would not, individually or in the aggregate, have a Material Adverse Effect. The Partnership and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not, individually or in the aggregate, have a Material Adverse Effect, and neither the Partnership nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit, except where such potential revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect.

 

6


Section 3.7 Due Authorization . Each of the Operative Documents has been duly and validly authorized and has been or, with respect to the Operative Documents to be delivered at the Closing Date, will be, validly executed and delivered by the Partnership, the General Partner, or the Managing General Partner, as the case may be, and constitutes, or will constitute, the legal, valid and binding obligations of the Partnership, the General Partner, or the Managing General Partner as the case may be, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and by general principles of equity.

Section 3.8 Valid Issuance; No Options or Preemptive Rights . The Purchased Units to be issued and sold by the Partnership to each Purchaser hereunder have been duly authorized in accordance with the Partnership Agreement and, when issued and delivered against payment therefor pursuant to this Agreement, will be validly issued in accordance with the Partnership Agreement, fully paid (to the extent required under the Partnership Agreement) and non-assessable (except as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act). The holders of outstanding Common Units are not entitled to statutory, preemptive or other similar contractual rights to subscribe for Common Units other than as provided in the Partnership Agreement; and no options, warrants or other rights to purchase, agreements or other obligations to issue, or rights to convert any obligations into or exchange any securities for, partnership securities or ownership interests in the Partnership are outstanding, as provided for in the Partnership Agreement.

Section 3.9 No Registration Rights . Except as contemplated by this Agreement, the Partnership Agreement and the Registration Rights Agreement, there are no contracts, agreements or understandings between the Partnership and any Person granting such Person the right to require the Partnership to file a registration statement under the Securities Act with respect to any securities of the Partnership or to require the Partnership to include such securities in any securities registered or to be registered pursuant to any registration statement filed by or required to be filed by the Partnership under the Securities Act.

Section 3.10 Periodic Reports . The Partnership has filed all forms, reports, schedules and statements required to be filed by it under the Exchange Act and when they were filed with the Commission, each such form, report, schedule and statement conformed in all material respects to the requirements of the Exchange Act and did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

Section 3.11 Litigation . As of the date hereof, there are no legal or governmental proceedings pending to which any Partnership Entity is a party or to which any Property or asset of any Partnership Entity is subject that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or which challenges the validity of any of the Operative Documents or the right of any Partnership Entity to enter into any of the Operative Documents or to consummate the transactions contemplated hereby and thereby and, to the knowledge of the Partnership, no such proceedings are threatened by Governmental Authorities or others.

 

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Section 3.12 No Side Agreements . There are no agreements by, among or between the Partnership or any of its Affiliates, on the one hand, and any Purchaser or any of their Affiliates, on the other hand, with respect to the transactions contemplated hereby other than the Operative Documents nor promises or inducements for future transactions between or among any of such parties.

Section 3.13 No Registration Required . Assuming the accuracy of the representations and warranties of each Purchaser contained in Section 4.5 and Section 4.6, the issuance and sale of the Purchased Units pursuant to this Agreement is exempt from registration requirements of the Securities Act, and neither the Partnership nor, to the knowledge of the Partnership, any authorized Representative acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.

Section 3.14 No Integration . Neither the Partnership nor any of its Affiliates have, directly or indirectly through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Securities Act of 1933, as amended) that is or will be integrated with the sale of the Purchased Units in a manner that would require registration under the Securities Act.

Section 3.15 MLP Status . The Partnership is properly treated as a partnership for United States federal income tax purposes and more than 90% of the Partnership’s current gross income is qualifying income under 7704(d) of the Internal Revenue Code of 1986, as amended.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

Each Purchaser, severally and not jointly, hereby represents and warrants to the Partnership that:

Section 4.1 Capacity, Authorization and Enforceability . Such Purchaser has full legal capacity (and, in the case of any Purchaser that is not a natural person, all requisite corporate, limited liability company, partnership or other similar entity power and authority) to execute, deliver and perform its obligations under this Agreement and the Registration Rights Agreement and to consummate the transactions contemplated thereby. In the case of any Purchaser that is not a natural person, the execution, delivery and performance by such Purchaser of this Agreement and the Registration Rights Agreement has been duly authorized by all corporate, partnership, limited liability company or other similar action on the part of such Purchaser. This Agreement and the Registration Rights Agreement (assuming the due authorization, execution and delivery by the other parties thereto), constitute the legal, valid and binding obligations of such Purchaser, enforceable in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar laws affecting creditors’ rights generally or by general principles of equity, including principles of commercial reasonableness, fair dealing and good faith.

Section 4.2 No Conflict . The execution, delivery and performance of this Agreement and the Registration Rights Agreement by such Purchaser and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any

 

8


material agreement to which such Purchaser is a party or by which such Purchaser is bound or to which any of the property or assets of such Purchaser is subject, (b) violate any statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over such Purchaser or the property or assets of such Purchaser, or (c) if such Purchaser is not a natural person, conflict with or result in any violation of the provisions of the organizational documents of such Purchaser, except in the cases of clauses (a) and (b), for such conflicts, breaches, violations or defaults as would not prevent the consummation of the transactions contemplated by this Agreement and the Registration Rights Agreement.

Section 4.3 Certain Fees . No fees or commissions are or will be payable by such Purchaser to brokers, finders, or investment bankers with respect to the purchase of any of the Purchased Units or the consummation of the transaction contemplated by this Agreement. Such Purchaser agrees that it will indemnify and hold harmless the Partnership from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by such Purchaser in connection with the purchase of the Purchased Units or the consummation of the transactions contemplated by this Agreement.

Section 4.4 No Side Agreements . There are no other agreements by, among or between such Purchaser and any of its Affiliates, on the one hand, and the Partnership or any of its Affiliates, on the other hand, with respect to the transactions contemplated hereby other than the Operative Documents nor promises or inducements for future transactions between or among any of such parties.

Section 4.5 Investment . The Purchased Units are being acquired for such Purchaser’s own account or the account of its Affiliates, not as a nominee or agent, and with no present intention of distributing the Purchased Units or any part thereof, and such Purchaser has no present intention of selling or granting any participation in or otherwise distributing the same in any transaction in violation of the securities laws of the United States or any state, without prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or any part of the Purchased Units under a registration statement under the Securities Act and applicable state securities laws or under an exemption from such registration available thereunder (including, without limitation, if available, Rule 144 promulgated thereunder). If such Purchaser should in the future decide to dispose of any of the Purchased Units, the Purchaser understands and agrees (a) that it may do so only in compliance with the Securities Act and applicable state securities law, as then in effect, including a sale contemplated by any registration statement pursuant to which such securities are being offered, or pursuant to an exemption from the Securities Act, and (b) that stop-transfer instructions to that effect will be in effect with respect to such securities.

Section 4.6 Nature of Purchaser . (a) Such Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated by the Commission pursuant to the Securities Act and (b) by reason of its business and financial experience, such Purchaser has such knowledge, sophistication and experience in making similar investments and in business and financial matters generally so as to be capable of evaluating the merits and risks of the prospective investment in the Purchased Units, is able to bear the economic risk of such investment and, at the present time, would be able to afford a complete loss of such investment.

 

9


Section 4.7 Restricted Securities . Such Purchaser understands that the Purchased Units are characterized as “restricted securities” under the federal securities Laws inasmuch as they are being acquired from the Partnership in a transaction not involving a public offering and that under such Laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, such Purchaser represents that it is knowledgeable with respect to Rule 144 of the Commission promulgated under the Securities Act.

Section 4.8 Legend; Restrictive Notation . Such Purchaser understands that the certificates evidencing the Purchased Units or the book-entry account maintained by the transfer agent evidencing ownership of the Purchased Units, as applicable, will bear the legend or restrictive notation required by the Partnership Agreement as well as the following legend or restrictive notation: “These securities have not been registered under the Securities Act of 1933, as amended (the “ Securities Act ”). These securities may not be sold or offered for sale except pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from registration thereunder, in each case in accordance with all applicable securities laws of the states or other jurisdictions, and in the case of a transaction exempt from registration, such securities may only be transferred if the transfer agent for such securities has received documentation satisfactory to it that such transaction does not require registration under the Securities Act.”

ARTICLE V

COVENANTS

Section 5.1 Taking of Necessary Action . Each of the parties hereto shall use its commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause to be done all things necessary, proper or advisable under applicable Law and regulations to consummate and make effective the transactions between the Partnership and the Purchasers contemplated by this Agreement related specifically to the acquisition of the Purchased Units. Without limiting the foregoing, each of the Partnership and each Purchaser shall use its commercially reasonable efforts to make all filings and obtain all consents of Governmental Authorities that may be necessary or, in the reasonable opinion of the other parties, as the case may be, advisable for the consummation of the transactions contemplated by the Operative Documents.

Section 5.2 Purchaser Lock-Up . For a period commencing on the date hereof and ending on July 22, 2013 (the “ Lock-Up Period ”), the Purchaser agrees not to, directly or indirectly, (a) offer for sale, sell, pledge or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) the Purchased Units, (b) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of the Purchased Units, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Common Units or other securities, in cash or otherwise, or (c) publicly disclose the intention to do any of the foregoing.

 

10


ARTICLE VI

INDEMNIFICATION

Section 6.1 Indemnification by the Partnership . The Partnership agrees to indemnify each Purchaser and its Representatives (collectively, “ Purchaser Related Parties ”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of the Partnership contained herein, provided that such claim for indemnification relating to a breach of the representations or warranties is made prior to the expiration of such representations or warranties to the extent applicable; and provided further, that no Purchaser Related Party shall be entitled to recover special, consequential or punitive damages under this Section 6.1.

Section 6.2 Indemnification by Purchasers . Each Purchaser agrees, severally and not jointly, to indemnify the Partnership, the General Partner and their respective Representatives (collectively, “ Partnership Related Parties ”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of such Purchaser contained herein, provided that such claim for indemnification relating to a breach of the representations and warranties is made prior to the expiration of such representations and warranties; and provided further, that no Partnership Related Party shall be entitled to recover special, consequential or punitive damages under this Section 6.2.

Section 6.3 Indemnification Procedure . Promptly after any Partnership Related Party or Purchaser Related Party (hereinafter, the “ Indemnified Party ”) has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the Indemnified Party believes in good faith is an indemnifiable claim under this Agreement, the Indemnified Party shall give the indemnitor hereunder (the “ Indemnifying Party ”) written notice of such claim or the commencement of such action, suit or proceeding, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and the basis of such claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to the Indemnified Party, any such matter as long as the Indemnifying Party pursues

 

11


the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be entitled (i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has failed to assume the defense or employ counsel reasonably acceptable to the Indemnified Party or (B) if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable defenses available to the Indemnified Party that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Party. The remedies provided for in this Article VI are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise.

ARTICLE VII

MISCELLANEOUS

Section 7.1 Certain Special Allocations of Book and Taxable Income . To the extent that the Common Unit Price differs from the Per Unit Capital Amount as of the Closing Date for a then Outstanding Common Unit after taking into account the issuance of the Purchased Units, the General Partner intends to specially allocate Partnership items of book and taxable income, gain, loss or deduction to the Purchasers so that the Per Unit Capital Amount with respect to their Purchased Units are equal to the Per Unit Capital Amounts with respect to other Common Units (and thus to assure fungibility of all Common Units). Such special allocations will occur upon the earlier to occur of any taxable period of the Partnership ending upon, or after, (a) an event described in Section 5.5(d) of the Partnership Agreement or a sale of all or substantially all of the assets of the Partnership occurring after the date of the issuance of the Purchased Units, or (b) the transfer of the Purchased Units to a Person that is not an Affiliate of the Purchaser, in which case, such allocation shall be made only with respect to the Purchased Units so transferred. To the maximum extent permissible, the special allocations resulting from clause (a) will be made through allocations of Unrealized Gain.

 

12


Section 7.2 Interpretation and Survival of Provisions . Article, Section, Schedule, and Exhibit references are to this Agreement, unless otherwise specified. All references to instruments, documents, contracts, and agreements are references to such instruments, documents, contracts, and agreements as the same may be amended, supplemented, and otherwise modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited to.” Whenever any party has an obligation under the Operative Documents, the expense of complying with that obligation shall be an expense of such party unless otherwise specified. Whenever any determination, consent, or approval is to be made or given by any Purchaser, such action shall be in such Purchaser’s sole discretion unless otherwise specified in this Agreement. If any provision in the Operative Documents is held to be illegal, invalid, not binding, or unenforceable, such provision shall be fully severable and the Operative Documents shall be construed and enforced as if such illegal, invalid, not binding, or unenforceable provision had never comprised a part of the Operative Documents, and the remaining provisions shall remain in full force and effect. The Operative Documents have been reviewed and negotiated by sophisticated parties with access to legal counsel and shall not be construed against the drafter.

Section 7.3 Survival of Provisions . The representations and warranties set forth in Sections 3.1, 3.2, 3.4, 3.7, 3.8, 3.12, 3.13, 4.3, 4.4, 4.5, 4.6, 4.7 and 4.8 hereunder shall survive the execution and delivery of this Agreement indefinitely, and the other representations and warranties set forth herein shall survive for a period of twelve (12) months following the Closing Date regardless of any investigation made by or on behalf of the Partnership or any Purchaser. The covenants made in this Agreement or any other Operative Document shall survive the Closing of the transactions described herein and remain operative and in full force and effect. All indemnification obligations of the Partnership and the Purchasers pursuant to this Agreement and the provisions of Article VI shall remain operative and in full force and effect unless such obligations are expressly terminated in a writing by the parties, regardless of any purported general termination of this Agreement.

Section 7.4 No Waiver; Modifications in Writing .

(a) Delay . No failure or delay on the part of any party in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise.

(b) Amendments and Waivers . Except as otherwise provided herein, no amendment, waiver, consent, modification, or termination of any provision of this Agreement or any other Operative Document shall be effective unless signed by each of the parties hereto or thereto affected by such amendment, waiver, consent, modification, or termination. Any amendment, supplement or modification of or to any provision of this Agreement or any other Operative Document, any waiver of any provision of this Agreement or any other Operative Document, and any consent to any departure by the Partnership from the terms of any provision of this

 

13


Agreement or any other Operative Document shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically required by this Agreement, no notice to or demand on the Partnership in any case shall entitle the Partnership to any other or further notice or demand in similar or other circumstances.

Section 7.5 Binding Effect; Assignment .

(a) Binding Effect . This Agreement shall be binding upon the Partnership, the Purchasers, and their respective successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement and their respective successors and permitted assigns.

(b) Assignment of Rights . All or any portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to any Affiliate of such Purchaser without the consent of the Partnership by delivery of an agreement to be bound and a revised Schedule A . No portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to a non-Affiliate without the written consent of the Partnership (which consent shall not be unreasonably withheld by the Partnership).

Section 7.6 Communications . All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, telecopy, air courier guaranteeing overnight delivery or personal delivery to the following addresses:

 

  (a) If to any Purchaser:

To the respective address listed on Schedule B hereof

 

  (b) If to the Partnership:

Natural Resource Partners L.P.

601 Jefferson, Suite 3600

Houston, Texas 77002

Attention: Wyatt L. Hogan

Telephone: 713.751.7507

or to such other address as the Partnership or such Purchaser may designate in writing. All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; at the time of transmittal, if sent via electronic mail; upon actual receipt if sent by certified mail, return receipt requested, or regular mail, if mailed; when receipt acknowledged, if sent via facsimile; and upon actual receipt when delivered to an air courier guaranteeing overnight delivery.

Section 7.7 Removal of Legend . The Purchasers may request the Partnership to remove the legend described in Section 4.8 from the certificates evidencing the Purchased Units by submitting to the Partnership such certificates, together with an opinion of counsel to the effect that such legend is no longer required under the Securities Act or applicable state laws, as the case may be. The Partnership shall cooperate with the Purchasers to effect the removal of such legend.

 

14


Section 7.8 Entire Agreement . This Agreement, the other Operative Documents and the other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein or the other Operative Documents with respect to the rights granted by the Partnership or any of its Affiliates or any Purchaser or any of its Affiliates set forth herein or therein. This Agreement, the other Operative Documents and the other agreements and documents referred to herein or therein supersede all prior agreements and understandings between the parties with respect to such subject matter.

Section 7.9 Governing Law . This Agreement will be construed in accordance with and governed by the laws of the State of Delaware.

Section 7.10 Execution in Counterparts . This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

[Signature pages follow.]

 

15


IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written.

 

NATURAL RESOURCE PARTNERS L.P.

By:

  NRP (GP) LP,
  its General Partner

By:

  GP NATURAL RESOURCE PARTNERS LLC,
  its General Partner

By:

  /s/ Dwight L. Dunlap

Name:

  Dwight L. Dunlap

Title:

  Chief Financial Officer

 

Signature Page to Common Unit Purchase Agreement


Investor: Corbin J. Robertson, Jr.

By:

  /s/ Corbin J. Robertson, Jr.

 

 

Signature Page to Common Unit Purchase Agreement


Investor: Cutlass Collieries LLC

By:

  /s/ Donald R. Holcomb

Name: Donald R. Holcomb

Title: Authorized Person

 

Signature Page to Common Unit Purchase Agreement


Investor: Shadder Investments

By:   Morian Management LLC,
  its general partner
By:   /s/ S. Reed Morian
Name: S. Reed Morian

Title: Member

 

Signature Page to Common Unit Purchase Agreement


Investor: H.R. Cullen Estate Trust for Corbin J. Robertson, Jr.

By:   /s/ W.E. Robertson
Name: W.E. Robertson
Title: Co-Trustee
By:   /s/ Carroll R. Ray
Name: Carroll R. Ray
Title: Co-Trustee
By:   /s/ Lillie T. Robertson
Name: Lillie T. Robertson
Title: Co-Trustee

 

Signature Page to Common Unit Purchase Agreement


Investor: Peter Baumann
By:   /s/ Peter Baumann
Investor: Alison Baumann
By:   /s/ Alison Baumann

 

Signature Page to Common Unit Purchase Agreement


Investor: Corbin J. Robertson, III
By:  

/s/ Corbin J. Robertson, III

 

 

 

Signature Page to Common Unit Purchase Agreement


Investor: William K. Robertson 2009 Family

                Trust

By:   /s/ Cathleen McVeigh
 

 

Name:

  Cathleen McVeigh

Title:

  Senior Vice President

 

Signature Page to Common Unit Purchase Agreement


Investor: Christine R. Morenz 2009 Family Trust
By:   /s/ Cathleen McVeigh
 

 

Name: Cathleen McVeigh

Title: Senior Vice President

 

Signature Page to Common Unit Purchase Agreement


Investor: William K. Robertson
By:  

/s/ Willam K. Robertson

 

 

 

Signature Page to Common Unit Purchase Agreement


Investor: Christine R. Morenz
By:  

/s/ Christine R. Morenz

 

 

 

Signature Page to Common Unit Purchase Agreement


Investor: Scott Riverbend Farm, Ltd.
By:   /s/ W.W. Scott, Jr.
 

 

Name: W.W. Scott, Jr.

Title: Authorized Person

 

Signature Page to Common Unit Purchase Agreement


Investor: Corbin J. Robertson, Jr. 1953 Trust
By:   /s/ W.E. Robertson
 

 

Name: W.E. Robertson

Title: Co-Trustee

 

Signature Page to Common Unit Purchase Agreement


Investor: Wilhelmina E. Robertson
By:  

/s/ Wilhelmina E. Robertson

 

 

 

Signature Page to Common Unit Purchase Agreement


Investor: Corbin J. Robertson III 2009 Family

                Trust

By:   /s/ Cathleen McVeigh
 

 

Name: Cathleen McVeigh

Title: Senior Vice President

 

Signature Page to Common Unit Purchase Agreement


Investor: Colewood Properties, Inc.
By:   /s/ Carroll R. Ray
 

 

Name: Carroll R. Ray

Title: President

 

Signature Page to Common Unit Purchase Agreement


Investor: CIII Capital Management, LLC
By:   /s/ Corbin J. Robertson, III
 

 

Name: Corbin J. Robertson, III

Title: Authorized Person

 

Signature Page to Common Unit Purchase Agreement


Investor: Lillie T. Robertson
By:  

/s/ Lillie T. Robertson

 

 

 

 

Signature Page to Common Unit Purchase Agreement


Investor: Carroll R. Ray
By:  

/s/ Carrol R. Ray

 

 

 

Signature Page to Common Unit Purchase Agreement


Schedule A – List of Purchasers and Commitment Amounts

 

Purchaser

   Common Units      Purchase Price  

Corbin J. Robertson, Jr.

     832,606       $ 16,500,000   

Cutlass Collieries LLC

     756,914       $ 15,000,000   

Shadder Investments

     403,688       $ 8,000,000   

H.R. Cullen Estate Trust for Corbin J. Robertson, Jr.

     378,457       $ 7,500,000   

Peter and Alison Baumann

     201,844       $ 4,000,000   

Corbin J. Robertson, III

     176,613       $ 3,500,000   

William K. Robertson 2009 Family Trust

     176,613       $ 3,500,000   

Christine R. Morenz 2009 Family Trust

     176,613       $ 3,500,000   

William K. Robertson

     151,383       $ 3,000,000   

Christine R. Morenz

     151,383       $ 3,000,000   

Scott Riverbend Farm, Ltd.

     100,922       $ 2,000,000   

Corbin J. Robertson, Jr. 1953 Trust

     75,691       $ 1,500,000   

Wilhelmina E. Robertson

     50,461       $ 1,000,000   

Corbin J. Robertson III 2009 Family Trust

     50,461       $ 1,000,000   

Colewood Properties, Inc.

     37,846       $ 750,000   

CIII Capital Management, LLC

     25,231       $ 500,000   

Lillie T. Robertson

     25,231       $ 500,000   

Carroll R. Ray

     12,615       $ 250,000   
  

 

 

    

 

 

 

Total

     3,784,572       $ 75,000,000.00   

Schedule A to the Unit Purchase Agreement


Schedule B – Notice and Contact Information

 

Purchaser

  

Contact Information

Corbin J. Robertson, Jr.    601 Jefferson, #3600, Houston, Texas 77002
Cutlass Collieries LLC    3801 PGA Blvd., Suite 903, Palm Beach Gardens, Florida 33410
Shadder Investments    300 Jackson Hill Street, Houston, Texas 77007
H.R. Cullen Estate Trust for Corbin J. Robertson, Jr.    601 Jefferson, #3600, Houston, Texas 77002
Peter and Alison Baumann    601 Jefferson, #4000, Houston, Texas 77002
Corbin J. Robertson, III    601 Jefferson, #3600, Houston, Texas 77002
William K. Robertson 2009 Family Trust    1100 N King Street, Wilmington, Delaware 19884
Christine R. Morenz 2009 Family Trust    1100 N King Street, Wilmington, Delaware 19884
William K. Robertson    601 Jefferson, #3600, Houston, Texas 77002
Christine R. Morenz    601 Jefferson, #3600, Houston, Texas 77002
Scott Riverbend Farm, Ltd.    2606 W Lane Dr., Houston, Texas 77027-4914
Corbin J. Robertson, Jr. 1953 Trust    601 Jefferson, #3600, Houston, Texas 77002
Wilhelmina E. Robertson    601 Jefferson, #4000, Houston, Texas 77002
Corbin J. Robertson III 2009 Family Trust    1100 N King Street, Wilmington, Delaware 19884
Colewood Properties, Inc.    601 Jefferson, #4000, Houston, Texas 77002
CIII Capital Management, LLC    601 Jefferson, #3600, Houston, Texas 77002
Lillie T. Robertson    601 Jefferson, #4000, Houston, Texas 77002
Carroll R. Ray    601 Jefferson, #4000, Houston, Texas 77002

Schedule B to the Unit Purchase Agreement


Exhibit A – Form of Additional Limited Partner Certificate

The undersigned (the “ Investor ”) hereby applies for issuance in the name of the Investor of the Common Units evidenced hereby.

The Investor (a) requests admission as an Additional Limited Partner and agrees to comply with and be bound by, and hereby executes, the Fourth Amended and Restated Agreement of Limited Partnership of Natural Resource Partners L.P. (the “ Partnership ”), as amended, supplemented or restated to the date hereof (the “ Partnership Agreement ”), (b) represents and warrants that the Investor has all right, power and authority and, if an individual, the capacity necessary to enter into the Partnership Agreement, (c) appoints the General Partner of the Partnership and, if a Liquidator shall be appointed, the Liquidator of the Partnership as the Investor’s attorney-in-fact to execute, swear to, acknowledge and file any document, including, without limitation, the Partnership Agreement and any amendment thereto and the Certificate of Limited Partnership of the Partnership and any amendment thereto, necessary or appropriate for the Investor’s admission as an Additional Limited Partner and as a party to the Partnership Agreement, (d) gives the powers of attorney provided for in the Partnership Agreement, and (e) makes the waivers and gives the consents and approvals contained in the Partnership Agreement. Capitalized terms not defined herein have the meanings assigned to such terms in the Partnership Agreement.

Date:                                                      

 

 

Social Security or other identifying number

 

 

Signature of Investor

 

Purchase Price including commissions, if any

 

 

Name and Address of Investor

Type of Entity (check one):

 

¨ Individual    ¨ Partnership    ¨ Corporation
¨ Trust    ¨ Other (specify)   

Nationality (check one):

 

¨ U.S. Citizen, Resident or Domestic Entity   
¨ Foreign Corporation    ¨ Non-resident Alien   

If the U.S. Citizen, Resident or Domestic Entity box is checked, the following certification must be completed.

Under Section 1445(e) of the Internal Revenue Code of 1986, as amended (the “ Code ”), the Partnership must withhold tax with respect to certain transfers of property if a holder of an interest in the Partnership is a foreign person. To inform the Partnership that no withholding is required with respect to the undersigned interestholder’s interest in it, the undersigned hereby certifies the following (or, if applicable, certifies the following on behalf of the interestholder).

 

Exhibit A to the Unit Purchase Agreement


Complete Either A or B:

A. Individual Interestholder

 

  1. I am not a non-resident alien for purposes of U.S. income taxation.

 

  2. My U.S. taxpayer identification number (Social Security Number) is .

 

  3. My home address is .

B. Partnership, Corporation or Other Interestholder

 

  1.             is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and Treasury Regulations).

 

  2. The interestholder’s U.S. employer identification number is             .

 

  3. The interestholder’s office address and place of incorporation (if applicable) is             .

The interestholder agrees to notify the Partnership within sixty (60) days of the date the interestholder becomes a foreign person.

The interestholder understands that this certificate may be disclosed to the Internal Revenue Service by the Partnership and that any false statement contained herein could be punishable by fine, imprisonment or both.

Under penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete and, if applicable, I further declare that I have authority to sign this document on behalf of:

 

 

Name of Interestholder

 

 

Signature and Date

 

 

Title (if applicable)

 

Exhibit A to the Unit Purchase Agreement


Note: If the Investor is a broker, dealer, bank, trust company, clearing corporation, other nominee holder or an agent of any of the foregoing, and is holding for the account of any other person, this application should be completed by an officer thereof or, in the case of a broker or dealer, by a registered representative who is a member of a registered national securities exchange or a member of the Financial Industry Regulatory Authority, or, in the case of any other nominee holder, a person performing a similar function. If the Investor is a broker, dealer, bank, trust company, clearing corporation, other nominee owner or an agent of any of the foregoing, the above certification as to any person for whom the Investor will hold the Common Units shall be made to the best of the Investor’s knowledge.

 

Exhibit A to the Unit Purchase Agreement

Exhibit 10.2

 

  

 

 

$200,000,000

TERM LOAN AGREEMENT

dated as of

January 23, 2013

among

NRP (OPERATING) LLC

as Borrower

The Lenders Party Hereto

and

CITIBANK, N.A.

as Administrative Agent

 

 

CITIGROUP GLOBAL MARKETS, INC.

WELLS FARGO SECURITIES, LLC

and COMPASS BANK

as Joint Lead Arrangers and Joint Bookrunners

WELLS FARGO BANK, NATIONAL ASSOCIATION

and COMPASS BANK

as Co-Syndication Agents

 

 

 


TABLE OF CONTENTS

 

           Page  

ARTICLE I DEFINITIONS

     1   

SECTION 1.01.

  D EFINED T ERMS      1   

SECTION 1.02.

  T YPES OF L OANS AND B ORROWINGS      19   

SECTION 1.03.

  T ERMS G ENERALLY      19   

SECTION 1.04.

  A CCOUNTING T ERMS ; GAAP      19   

ARTICLE II THE LOANS

     20   

SECTION 2.01.

  T ERM L OAN      20   

SECTION 2.02.

  L OANS AND B ORROWINGS      20   

SECTION 2.03.

  R EQUESTS FOR B ORROWINGS      20   

SECTION 2.04.

  F UNDING OF B ORROWINGS      21   

SECTION 2.05.

  I NTEREST E LECTIONS      22   

SECTION 2.06.

  R EPAYMENT OF L OANS ; E VIDENCE OF D EBT      23   

SECTION 2.07.

  P REPAYMENT OF L OANS      24   

SECTION 2.08.

  F EES      24   

SECTION 2.09.

  I NTEREST      24   

SECTION 2.10.

  A LTERNATE R ATE OF I NTEREST      25   

SECTION 2.11.

  I NCREASED C OSTS      25   

SECTION 2.12.

  B REAK F UNDING P AYMENTS      26   

SECTION 2.13.

  T AXES      27   

SECTION 2.14.

  P AYMENTS G ENERALLY ; P RO R ATA T REATMENT ; S HARING OF S ET - OFFS      31   

SECTION 2.15.

  M ITIGATION O BLIGATIONS ; R EPLACEMENT OF L ENDERS      32   

SECTION 2.16.

  D EFAULTING L ENDERS      33   

ARTICLE III REPRESENTATIONS AND WARRANTIES

     34   

SECTION 3.01.

  O RGANIZATION ; P OWERS      34   

SECTION 3.02.

  A UTHORIZATION ; E NFORCEABILITY      34   

SECTION 3.03.

  N O U NDISCLOSED L IABILITIES      35   

SECTION 3.04.

  G OVERNMENTAL A PPROVALS ; N O C ONFLICTS      35   

SECTION 3.05.

  F INANCIAL C ONDITION ; N O M ATERIAL A DVERSE C HANGE      35   

SECTION 3.06.

  P ROPERTIES      35   

SECTION 3.07.

  L ITIGATION AND E NVIRONMENTAL M ATTERS      36   

SECTION 3.08.

  C OMPLIANCE WITH L AWS AND A GREEMENTS      36   

SECTION 3.09.

  I NVESTMENT C OMPANY S TATUS      36   

SECTION 3.10.

  T AXES      36   

SECTION 3.11.

  ERISA      36   

SECTION 3.12.

  D ISCLOSURE      37   

SECTION 3.13.

  L ABOR M ATTERS      37   

SECTION 3.14.

  S UBSIDIARIES      37   

SECTION 3.15.

  M ARGIN S TOCK      37   

SECTION 3.16.

  L ICENSES AND P ERMITS      37   

SECTION 3.17.

  S ENIOR D EBT S TATUS      38   

SECTION 3.18.

  L EASES      38   

SECTION 3.19.

  S OLVENCY      38   

SECTION 3.20.

  F OREIGN A SSETS C ONTROL R EGULATION      38   

SECTION 3.21.

  R EPRESENTATIONS R EGARDING THE P ARENT      38   

 

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ARTICLE IV CONDITIONS

     38   

SECTION 4.01.

  E FFECTIVE D ATE      38   

ARTICLE V AFFIRMATIVE COVENANTS

     40   

SECTION 5.01.

  F INANCIAL S TATEMENTS ; R ATINGS C HANGE AND O THER I NFORMATION      40   

SECTION 5.02.

  N OTICES OF M ATERIAL E VENTS      41   

SECTION 5.03.

  E XISTENCE ; C ONDUCT OF B USINESS      42   

SECTION 5.04.

  P AYMENT OF O BLIGATIONS      42   

SECTION 5.05.

  M AINTENANCE OF P ROPERTIES ; I NSURANCE      42   

SECTION 5.06.

  B OOKS AND R ECORDS ; I NSPECTION R IGHTS      42   

SECTION 5.07.

  C OMPLIANCE WITH L AWS      43   

SECTION 5.08.

  U SE OF P ROCEEDS      43   

SECTION 5.09.

  C OMPLIANCE WITH ERISA      43   

SECTION 5.10.

  C OMPLIANCE WITH E NVIRONMENTAL L AWS ; E NVIRONMENTAL R EPORTS      43   

SECTION 5.11.

  F URTHER A SSURANCES      43   

SECTION 5.12.

  L EASES ; M ATERIAL C ONTRACTS      44   

SECTION 5.13.

  G UARANTIES      44   

ARTICLE VI NEGATIVE COVENANTS

     44   

SECTION 6.01.

  I NDEBTEDNESS      44   

SECTION 6.02.

  L IENS      45   

SECTION 6.03.

  F UNDAMENTAL C HANGES      47   

SECTION 6.04.

  I NVESTMENTS , L OANS , A DVANCES AND G UARANTEES      47   

SECTION 6.05.

  S WAP A GREEMENTS      48   

SECTION 6.06.

  R ESTRICTED P AYMENTS      48   

SECTION 6.07.

  T RANSACTIONS WITH A FFILIATES      49   

SECTION 6.08.

  S ALES OF A SSETS      49   

SECTION 6.09.

  C ONSTITUENT D OCUMENTS      50   

SECTION 6.10.

  R EGULATION T, U AND X C OMPLIANCE      50   

SECTION 6.11.

  S ALES AND L EASEBACKS      50   

SECTION 6.12.

  C HANGES IN F ISCAL Y EAR      50   

SECTION 6.13.

  C HANGE IN THE N ATURE OF B USINESS      50   

SECTION 6.14.

  L IMITATION ON R ESTRICTIONS ON S UBSIDIARY D ISTRIBUTIONS      50   

SECTION 6.15.

  C HANGES TO THE O MNIBUS A GREEMENT      51   

SECTION 6.16.

  C HANGES TO THE N OTE P URCHASE A GREEMENTS      51   

SECTION 6.17.

  M INIMUM I NTEREST C OVERAGE R ATIO      51   

SECTION 6.18.

  M AXIMUM L EVERAGE R ATIO      51   

SECTION 6.19.

  P ERMITTED A CQUISITIONS      51   

ARTICLE VII EVENTS OF DEFAULT

     52   

ARTICLE VIII THE ADMINISTRATIVE AGENT

     55   

ARTICLE IX MISCELLANEOUS

     57   

SECTION 9.01.

  N OTICES      57   

SECTION 9.02.

  W AIVERS ; A MENDMENTS      58   

SECTION 9.03.

  E XPENSES ; I NDEMNITY ; D AMAGE W AIVER      59   

SECTION 9.04.

  S UCCESSORS AND A SSIGNS      60   

SECTION 9.05.

  S URVIVAL      64   

SECTION 9.06.

  C OUNTERPARTS ; I NTEGRATION ; E FFECTIVENESS      64   

SECTION 9.07.

  S EVERABILITY      65   

 

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SECTION 9.08.

  R IGHT OF S ETOFF      65   

SECTION 9.09.

  G OVERNING L AW ; J URISDICTION ; C ONSENT TO S ERVICE OF P ROCESS      65   

SECTION 9.10.

  WAIVER OF JURY TRIAL      66   

SECTION 9.11.

  H EADINGS      66   

SECTION 9.12.

  C ONFIDENTIALITY      66   

SECTION 9.13.

  I NTEREST R ATE L IMITATION      66   

SECTION 9.14.

  USA PATRIOT A CT      67   

SECTION 9.15.

  S EPARATENESS      67   

SECTION 9.16.

  N O P ERSONAL L IABILITY OF D IRECTORS , O FFICERS , E MPLOYEES AND U NITHOLDERS      67   

SECTION 9.17.

  R ELEASE OF G UARANTY A GREEMENTS      67   

SCHEDULES :

Schedule 2.01 — Commitments

Schedule 3.03 — Disclosed Matters

Schedule 3.14 — Subsidiaries

Schedule 6.01 — Existing Indebtedness

Schedule 6.02 — Existing Liens

Schedule 6.08 — Permitted Asset Sales

Schedule 6.14 — Existing Restrictions

EXHIBITS :

Exhibit A — Form of Assignment and Assumption

Exhibit B — Form of Guaranty Agreement (Material Subsidiary)

Exhibit C — Form of Borrowing Request

Exhibit D-1 — Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not

                                Partnerships For U.S. Federal Income Tax Purposes)

Exhibit D-2 — Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not

                                 Partnerships For U.S. Federal Income Tax Purposes)

Exhibit D-3 — Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are

                                 Partnerships For U.S. Federal Income Tax Purposes)

Exhibit D-4 — Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are

                                 Partnerships For U.S. Federal Income Tax Purposes)

 

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TERM LOAN AGREEMENT (this “ Agreement ”) dated as of January 23, 2013, among NRP (OPERATING) LLC, the LENDERS party hereto, and CITIBANK, N.A., as Administrative Agent.

The parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01. Defined Terms . As used in this Agreement, the following terms have the meanings specified below:

ABR ”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

Acquisition ” means the acquisition by NRP Trona LLC of (a) a 48.51% general partner interest in OCI Wyoming L.P., a Delaware limited partnership, from Big Island Trona Company, a Delaware corporation, and (b) 20% of the shares of common stock, par value $5.00 per share, and 23,200 shares of the cumulative preferred stock, par value $5.00 per share, of OCI Wyoming Co., a Delaware corporation, from Anadarko Holding Company, a Utah corporation, in each case, pursuant to the Purchase Agreement.

Adjusted LIBO Rate ” means, with respect to any Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

Administrative Agent ” means Citibank, N.A., in its capacity as administrative agent for the Lenders hereunder, together with its successors in such capacity.

Administrative Questionnaire ” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

Affiliate ” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

Agent Parties ” has the meaning assigned to such term in Section 9.01(c) .

Agreement ” has the meaning assigned to such term in the introductory paragraph hereof.

Alternate Base Rate ” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the LIBO Rate in effect on such day (or if such day is not a Business Day, the immediately preceding Business Day) for a deposit in dollars with a maturity of one month plus 1% per annum, and (c) the Federal Funds Effective Rate in effect on such day plus  1 / 2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate, the LIBO Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate, the LIBO Rate or the Federal Funds Effective Rate, respectively.


Applicable Percentage ” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Loans then outstanding.

Approved Fund ” has the meaning assigned to such term in Section 9.04 .

Assignment and Assumption ” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04 ), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent.

Available Cash ” has the meaning assigned to such term in the Partnership Agreement, with such amendments thereto as agreed to by the Required Lenders.

Board ” means the Board of Governors of the Federal Reserve System of the United States of America.

Borrower ” means NRP (Operating) LLC, a Delaware limited liability company.

Borrowing ” means Loans of the same Type made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

Borrowing Request ” means a request by the Borrower for a Borrowing in accordance with Section 2.03 and made in a form substantially similar to the form attached hereto as Exhibit C attached hereto and incorporated herein by reference.

Business Day ” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by Law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “ Business Day ” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market.

Capital Lease Obligations ” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

Change in Control ” means the occurrence of any of the following events: (a) Corbin J. Robertson, Jr., WPP Group and/or one or more of their direct or indirect, wholly-owned subsidiaries cease to own and control more than 50% of the general partnership interests of the General Partner or otherwise cease to Control the General Partner; (b) the General Partner shall cease to own and control, of record and beneficially, directly, 100% of the general partner interests in the Parent; or (c) the Parent shall cease to own and control, of record and beneficially, 100% of the membership interests of the Borrower.

 

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Change in Law ” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority. Notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, will in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

Code ” means the Internal Revenue Code of 1986, as amended from time to time.

Commitment ” means, with respect to each Lender, the commitment of such Lender to make a Loan pursuant to Section 2.01 . The amount of each Lender’s Commitment is set forth on Schedule 2.01 . The aggregate amount of the Lenders’ Commitments is $200,000,000.

Communications ” has the meaning assigned to such term in Section 9.01(c) .

Connection Income Taxes ” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

Consolidated EBITDDA ” means, with respect to the Parent, the Borrower and its Subsidiaries (or, following a Parent Event, the Borrower and its Subsidiaries) for any period, Consolidated Net Income for such period plus, without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) income tax expense, (b) interest expense, amortization or write-off of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness (including the Indebtedness hereunder), (c) depletion expense, (d) depreciation and amortization expense, (e) amortization of intangibles and organization costs, (f) any extraordinary non-cash expenses or losses and (g) any extraordinary, unusual or non-recurring cash income or gains to the extent not included in Consolidated Net Income, and minus , (i) to the extent included in the statement of such Consolidated Net Income for such period, any extraordinary, unusual or non-recurring non-cash income or gains (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary course of business) and (ii) any cash payments made during such period in respect of non-cash expenses or losses and subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income, all as determined on a consolidated

 

3


basis. For purposes of calculating Consolidated EBITDDA of the Parent (or if a Parent Event has occurred, the Borrower) and its Subsidiaries for any period for the purposes of Section 6.17 and Section 6.18 of this Agreement, (i) the earnings before interest, taxes, depletion, depreciation and amortization calculated as set forth above of any Person or assets acquired by the Borrower or its Subsidiaries during such period shall be included on a pro forma basis for such period as if such acquisition, and the incurrence or assumption of any Indebtedness in connection therewith, had occurred on the first day of such period and based upon the financial statements and other information delivered to the Administrative Agent pursuant to Section 5.01 hereof, and (ii) the earnings before interest, taxes, depletion, depreciation and amortization calculated as set forth above of any Person or assets Disposed of by the Borrower or its Subsidiaries during such period shall be excluded, on a pro forma basis for such period as if such Disposition, and the payment of any Indebtedness in connection therewith, had occurred on the first day of such period and based upon the financial statements and other information delivered to the Administrative Agent pursuant to Section 5.01 hereof.

Consolidated Indebtedness ” means the consolidated Indebtedness of the Parent, the Borrower and its Subsidiaries (or, following a Parent Event, the Borrower and its Subsidiaries).

Consolidated Interest Expense ” means, for any period, the sum of aggregate interest expense and capitalized interest (including the interest portion of any Capital Lease Obligations) of the Parent, the Borrower and its Subsidiaries (or, following a Parent Event, the Borrower and its Subsidiaries) determined on a consolidated basis for such period.

Consolidated Lease Expense ” means, for the relevant period, with respect to the Parent, the Borrower, and its Subsidiaries (or, following a Parent Event, the Borrower and its Subsidiaries) on a consolidated basis, the sum of all rentals in respect of all leases whereunder the Parent, the Borrower or any Subsidiary (or, following a Parent Event, the Borrower or any Subsidiary) is lessee, excluding Capital Lease Obligations to the extent such are included in Consolidated Interest Expense.

Consolidated Net Income ” means for any period, the consolidated net income (or loss) of the Parent, the Borrower and its Subsidiaries (or, following a Parent Event, the Borrower and its Subsidiaries), as applicable, determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower, or is merged into or consolidated with the Borrower or any of its Subsidiaries, as applicable, (b) the income (or deficit) of any Person (other than a Subsidiary of the Borrower, as applicable) in which the Borrower or any of its Subsidiaries, as applicable, has an ownership interest, except to the extent that any such income is actually received by the Borrower or any of its Subsidiaries, as applicable, in the form of dividends or similar distributions, and (c) the undistributed earnings of any Subsidiary of the Borrower, to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual Obligation or by any Law applicable to such Subsidiary.

 

4


Consolidated Net Tangible Assets ” means, with respect to the Parent (or, following a Parent Event, the Borrower) as of any date, the amount which, in accordance with GAAP, would be set forth under the caption “ Total Assets ” (or any like caption) on a consolidated balance sheet of the Parent (or, following a Parent Event, the Borrower) and its consolidated Subsidiaries, less all assets that are considered to be intangible assets under GAAP.

Contractual Obligation ” means as to any Person, any provision of any security issued by such Person or of any material agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

Control ” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.

Debtor Relief Laws ” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

Default ” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

Defaulting Lender ” means, subject to Section 2.16(d) , any Lender as reasonably determined by the Administrative Agent, that (a) has failed to (i) fund any portion of its Loans within three Business Days of the date required to be funded by it hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (which conditions precedent, together with the applicable default, if any, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with any of its funding obligations under this Agreement, or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with the applicable default, if any, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans; provided , that any such Lender will cease to be a Defaulting Lender under this clause (c) upon receipt of such confirmation by the Administrative Agent and the Borrower, or (d) has, or has had a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the

 

5


ownership or acquisition of any Equity Interest in such Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.16(d) ) upon delivery of written notice of such determination to the Borrower and each Lender.

Disclosed Matters ” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.03 , or previously disclosed in the Parent’s filings with the SEC or otherwise disclosed in writing to the Administrative Agent and Lenders.

Dispose ” means with respect to any property, to sell, lease, engage in a sale and leaseback with respect thereto, assign, convey, transfer or otherwise dispose thereof. The terms “Disposed” and “Disposition” shall have a correlative meaning.

dollars ” or “ $ ” refers to lawful money of the United States of America.

EDGAR ” means the Electronic Data Gathering, Analysis, and Retrieval computer system for the receipt, acceptance, review and dissemination of documents submitted to the SEC in electronic format.

Effective Date ” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02 ).

Environmental Laws ” means all applicable laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, or legally enforceable directives issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management or release of any Hazardous Material or to health and safety matters (to the extent pertaining to exposure to Hazardous Materials).

Environmental Liability ” means any liability (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) the exposure to any Hazardous Materials, (d) the release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

Equity Interests ” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.

 

6


ERISA ” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

ERISA Affiliate ” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

ERISA Event ” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the failure to meet the minimum funding standards under Section 430 of the Code or Section 303 of ERISA with respect to a Plan (determined without regard to any waiver of funding provisions therein); (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

Eurodollar ”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.

Event of Default ” has the meaning assigned to such term in Article VII .

Exchange Act ” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

Excluded Taxes ” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.15 ) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.13 , amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.13(g) and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

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FATCA ” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (and any amended or successor versions thereof that are substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

Federal Funds Effective Rate ” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

Financial Officer ” means the chief financial officer, principal accounting officer, treasurer or controller of the Parent or the Borrower as applicable.

Fitch ” means Fitch Ratings global rating agency.

Foreign Lender ” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.

GAAP ” means generally accepted accounting principles in the United States of America, as in effect from time to time.

General Partner ” means NRP (GP) LP, a Delaware limited partnership and the sole general partner of the Parent.

Governmental Approval ” means (i) any authorization, consent, approval, license, waiver, ruling, permit, tariff, rate, certification, exemption, filing, variance, claim, order, judgment, decree, sanction or publication of, by or with; (ii) any notice to; (iii) any declaration of or with; or (iv) any registration by or with, or any other action by or on behalf of, any Governmental Authority.

Governmental Authority ” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

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Guarantee ” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

Guarantor ” means each Material Subsidiary of the Borrower in existence on the Effective Date and each Person who becomes a Material Subsidiary of the Borrower after the Effective Date.

Guaranty Agreement ” means any guaranty agreement executed by a Guarantor in favor of the Administrative Agent and the Lenders and in the form attached hereto as Exhibit B , together with all extensions, renewals, amendments, substitutions and replacements thereof or thereto.

Hazardous Materials ” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including any petroleum or petroleum distillates released into the environment, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

Indebtedness ” of any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty and (i) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

 

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Indemnified Taxes ” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

Information Memorandum ” means the Confidential Information Memorandum dated December 20, 2012, relating to the Borrower and the Transactions.

Interest Coverage Ratio ” means, at any date, the ratio of (i) Consolidated EBITDDA to (ii) (a) Consolidated Interest Expense, plus (b) Consolidated Lease Expense, in each case for the period of four consecutive fiscal quarters most recently ended on or prior to such date for which financial information is available.

Interest Election Request ” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.05 .

Interest Payment Date ” means (a) with respect to any ABR Loan, the last day of each March, June, September and December, and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period.

Interest Period ” means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three, six or, if available by all Lenders, nine months thereafter, as the Borrower may elect; provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

Investment Grade Rating ” means the achievement by Borrower at the same time of any two of the following public debt ratings: at least (i) BBB- from S&P, (ii) Baa3 from Moody’s or (iii) BBB- from Fitch.

Joint Lead Arrangers and Joint Bookrunners ” means Citigroup Global Markets, Inc. and Wells Fargo Securities, LLC, in their capacities as Joint Lead Arrangers and Joint Bookrunners hereunder.

Joint Venture ” means any Person, other than an individual, the Borrower or a Wholly Owned Subsidiary of the Borrower, in which the Borrower or a Subsidiary of the Borrower holds or acquires no more than 50% of such Person’s Equity Interests (whether by way of capital stock, partnership or limited liability company interest, or other evidence of ownership) excluding warrants, options or unexercised rights to acquire or purchase an Equity Interest.

 

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Law ” means all laws, statutes, treaties, ordinances, codes, acts, rules, regulations, Government Approvals and orders of all Governmental Authorities, whether now or hereafter in effect.

Lease ” means any lease, mineral lease, mining agreement or other agreement to which the Borrower or any Subsidiary is a party and pursuant to which one Person transfers or grants to another Person the right to extract, mine or otherwise remove coal.

Lenders ” means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

Leverage Ratio ” means, at any date, the ratio of (i) Consolidated Indebtedness at such date to (ii) Consolidated EBITDDA for the four consecutive fiscal quarters most recently ended on or prior to such date for which financial information is available.

LIBO Rate ” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate per annum determined by the Administrative Agent to be the arithmetic mean of the offered rates for deposits in dollars with a term comparable to such Interest Period that appears on Reuters Reference Page LIBOR01 at approximately 11:00 a.m., London, England time, on the second full London Business Day preceding the first day of such Interest Period; provided , however , that (i) if no comparable term for an Interest Period is available, the LIBOR Rate shall be determined using the weighted average of the offered rates for the two terms most nearly corresponding to such Interest Period and (ii) if there shall at any time no longer exist a Reuters Reference Page LIBOR01, “LIBOR Rate” shall mean, with respect to each day during each Interest Period pertaining to Eurodollar Borrowings comprising part of the same Borrowing, the rate per annum equal to the rate at which the Administrative Agent is offered deposits in dollars at approximately 11:00 a.m., London, England time, two London Business Days prior to the first day of such Interest Period in the London interbank market for delivery on the first day of such Interest Period for the number of days comprised therein and in an amount comparable to its portion of the amount of such Eurodollar Borrowing to be outstanding during such Interest Period. Notwithstanding the foregoing, for purposes of clause (b) of the definition of Alternate Base Rate, the rates referred to above shall be the rates as of 11:00 a.m., London, England time, on the date of determination (rather than the second London Business Day preceding the date of determination).

Lien ” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

 

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Loan Documents ” means this Agreement, the Guaranty Agreements, any promissory notes executed in connection herewith, and any other agreements and documents executed and delivered in connection with this Agreement.

Loan Party ” and “ Loan Parties ” means, singularly and collectively, the Borrower and each Guarantor.

Loans ” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

Material Adverse Effect ” means a material adverse effect on (a) the business, assets, operations or financial condition of the Parent, the Borrower and its Subsidiaries (or, if a Parent Event has occurred, the Borrower and its Subsidiaries) taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this Agreement or (c) the rights of or benefits available to the Lenders under this Agreement.

Material Contract ” means any individual Lease or, collectively, group of Leases, from the Borrower or any of its Subsidiaries to a single operator or such operator’s Affiliates which either (i) accounted for twenty percent (20%) or more of the gross revenues of the Borrower and its Subsidiaries for the previous fiscal year, or (ii) is projected to account for twenty percent (20%) or more of the gross revenues of the Borrower and its Subsidiaries for the current fiscal year.

Material Indebtedness ” means (i) Indebtedness under the Revolving Credit Agreement, and (ii) Indebtedness (other than the Loans) and obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Material Subsidiaries in an aggregate principal amount exceeding $25,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Material Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Material Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

Material Subsidiary ” means, as of a determination date, any Subsidiary (other than a Joint Venture) whose (a) EBITDA for the immediately preceding fiscal quarter as determined in accordance with GAAP, or (b) book value of total assets as established in accordance with GAAP, is equal to or greater than 5% of the Borrower’s (i) Consolidated EBITDDA for the immediately preceding fiscal quarter as determined in accordance with GAAP or (ii) consolidated book value of total assets as established in accordance with GAAP, respectively, in each case as reflected in the financial statements covering such immediately preceding fiscal quarter and delivered to the Administrative Agent and the Lenders pursuant to the terms hereof. The Material Subsidiaries as of the Effective Date are set forth on Schedule 3.14 .

Maturity Date ” means January 23, 2016.

Moody’s ” means Moody’s Investors Service, Inc.

 

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Multiemployer Plan ” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

Note Purchase Agreements ” means those certain Note Purchase Agreements dated as of June 19, 2003 among the Borrower and the Purchasers listed therein, as amended by that certain First Amendment to Note Purchase Agreements dated July 18, 2005 and that certain Second Amendment to Note Purchase Agreement dated as of March 28, 2007, and as supplemented by that certain First Supplement to Note Purchase Agreements dated July 19, 2005, that certain Second Supplement to Note Purchase Agreements dated March 28, 2007, that certain Third Supplement to Note Purchase Agreements dated as of March 25, 2009 and that certain Fourth Supplement to Note Purchase Agreements dated as of April 20, 2011.

Omnibus Agreement ” means that certain First Amended and Restated Omnibus Agreement, dated April 22, 2009, by and among the General Partner, the Parent, the Borrower, GP Natural Resource Partners LLC, WPP Group and Robertson Coal Management LLC, which provides, among other things, certain non-competition provisions and indemnities for environmental and tax liabilities.

Other Connection Taxes ” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

Other Taxes ” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.15 ).

Parent ” means Natural Resource Partners L.P.

Parent Event ” means the occurrence of any of the following events: (i) the Parent has any subsidiary, joint venture or other investment other than the Borrower, (ii) the Borrower is not wholly owned by the Parent, (iii) the Parent’s financials are no longer filed with the SEC, or (iv) the Parent has any Indebtedness to, or Guarantees any Indebtedness of, any Person other than the Borrower or a Subsidiary.

Participant ” has the meaning assigned to such term in Section 9.04 .

Participant Register ” has the meaning assigned to such term in Section 9.04 .

Partnership Agreement ” means the Fourth Amended and Restated Agreement of Limited Partnership of the Parent dated as of September 20, 2010, as amended, amended and restated or otherwise modified from time to time.

 

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PBGC ” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

Permitted Encumbrances ” means:

(a) Liens imposed by law for taxes that are not yet due or are being contested in compliance with Section 5.04 ;

(b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 5.04 ;

(c) pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;

(d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

(e) judgment liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII ;

(f) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower or any of its Subsidiaries;

(g) Liens securing obligations (other than obligations representing Indebtedness for borrowed money) under operating, reciprocal easement or similar agreements entered into in the ordinary course of business of the Borrower and its Subsidiaries;

(h) licenses of patents, trademarks and other intellectual property rights granted by the Borrower or any of its Subsidiaries in the ordinary course of business and not interfering in any material respect with the ordinary conduct of the business of the Borrower and its Subsidiaries;

(i) the lien reserved in leases for rent and for compliance with the terms of the lease in the case of leasehold estates;

(j) any Lien in favor of any Governmental Authority to secure partial, progress, advance or other payments pursuant to any contract or statute, or any Lien securing industrial development, pollution control or similar revenue bonds;

 

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(k) any easements, exceptions or reservations in any property or assets granted or reserved for the purpose of pipelines, roads, the removal of oil, gas, coal, timber or other minerals, and other like purposes, or for the joint or common use of real property, facilities and equipment which are incidental to, and do not materially interfere with, the ordinary conduct of the Borrower’s and its Subsidiaries’ business; and

(l) Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution.

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness except as otherwise permitted above.

Permitted Investments ” means:

(a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one year from the date of acquisition thereof;

(b) investments in commercial paper, asset-backed securities, auction rate securities or similar instruments maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, a credit rating of at least A-2 from S&P or P-2 from Moody’s;

(c) investments in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof which has a combined capital and surplus and undivided profits of not less than $250,000,000;

(d) fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above;

(e) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000;

(f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying the requirements of clause (b) of this definition; and

(g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition, except that with respect to the maturities of the assets included in such funds the requirements of clauses (a) through (f) shall not be applied to the individual assets included in such funds but to the weighted-average maturity of all assets included in such funds.

 

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Person ” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

Plan ” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

Platform ” has the meaning assigned to such term in Section 9.01(c) .

Prime Rate ” means the rate of interest per annum publicly announced from time to time by Citibank, N.A. as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

Purchase Agreement ” means the Purchase Agreement dated as of January 23, 2013, by and among Anadarko Holding Company, Big Island Trona Company, NRP Trona LLC, and the Borrower.

Quarterly Distributions ” means the distributions by the Parent of Available Cash.

Recipient ” means (a) the Administrative Agent and (b) any Lender, as applicable.

Register ” has the meaning assigned to such term in Section 9.04 .

Regulation D ” means Regulation D of the Board, as the same is from time to time in effect, and all official rulings and interpretations thereunder or thereof.

Regulation T ” means Regulation T of the Board, as the same is from time to time in effect, and all official rulings and interpretations thereunder or thereof.

Regulation U ” means Regulation U of the Board, as the same is from time to time in effect, and all official rulings and interpretations thereunder or thereof.

Regulation X ” means Regulation X of the Board, as the same is from time to time in effect, and all official rulings and interpretations thereunder or thereof.

Related Parties ” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates.

Required Lenders ” means Lenders having Loans representing more than 50% of the sum of the total Loans.

 

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Response ” means (a) “response” as such term is defined in CERCLA, 42 U.S.C. §9601(25), and (b) all other actions required by any Governmental Authority or voluntarily undertaken to: (i) clean up, remove, treat, abate, or in any other way address any Hazardous Material in the environment; (ii) prevent the release of any Hazardous Material; or (iii) perform studies and investigations in connection with clause (i) or (ii) above.

Restricted Payment ” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any option, warrant or other right to acquire any such Equity Interests in the Borrower.

Revolving Credit Agreement ” means the Second Amended and Restated Credit Agreement dated as of August 10, 2011, among the Borrower, the Lenders party thereto, and Citibank, N.A., as Administrative Agent, as amended, amended and restated, supplemented or otherwise modified from time to time.

S&P ” means Standard & Poor’s.

SEC ” means the Securities and Exchange Commission (or successors thereto or an analogous Governmental Authority).

Solvent ” means, with respect to any Person on a particular date, that on such date (i) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (ii) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (iii) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (iv) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature, taking into account the possibility of refinancing such debt or selling such assets, and (v) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute unreasonably small capital. In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

Statutory Reserve Rate ” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject, with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve

 

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requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

subsidiary(ies) ” means, singularly and collectively, with respect to any Person (the “ parent ”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

Subsidiary ” means any subsidiary of the Borrower.

Swap Agreement ” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.

Taxes ” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

Transactions ” means the execution, delivery and performance by the Borrower of this Agreement, the borrowing of Loans, and the use of the proceeds thereof.

Type ”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

U.S. Person ” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

U.S. Tax Compliance Certificate ” has the meaning assigned to such term in Section 2.13(g) .

Wholly Owned Subsidiary ” means any Subsidiary of which all of the outstanding Equity Interests (other than any directors’ qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly Owned Subsidiaries or are owned by the Borrower and one or more of the Wholly Owned Subsidiaries.

 

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Withdrawal Liability ” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

Withholding Agent ” means the Borrower and the Administrative Agent.

WPP Group ” means, collectively, Western Pocahontas Properties Limited Partnership, a Delaware limited partnership, Great Northern Properties Limited Partnership, a Delaware limited partnership, and New Gauley Coal Corporation, a West Virginia corporation.

SECTION 1.02. Types of Loans and Borrowings . For purposes of this Agreement, Loans and Borrowings may be classified and referred to by Type (e.g., a “Eurodollar Loan” or a “Eurodollar Borrowing”).

SECTION 1.03. Terms Generally . The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

SECTION 1.04. Accounting Terms; GAAP . Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in a manner satisfactory to the Borrower and the Required Lenders.

 

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ARTICLE II

The Loans

SECTION 2.01. Term Loan s . Subject to the terms and conditions set forth herein, each Lender agrees to make a Loan to the Borrower on the Effective Date in a principal amount that will not result in (a) such Lender’s Loan exceeding such Lender’s Commitment or (b) the sum of the Loans exceeding $200,000,000. Amounts prepaid or repaid with respect to the Loans may not be reborrowed. The Commitment of each Lender will terminate at the close of business on the Effective Date.

SECTION 2.02. Loans and Borrowings.

(a) Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.

(b) Subject to Section 2.10 , each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

(c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $1,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $1,000,000. Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of fifteen (15) Eurodollar Borrowings outstanding.

(d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.

SECTION 2.03. Requests for Borrowings . To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone and promptly confirm thereafter in writing pursuant to a Borrowing Request (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of the proposed Borrowing. Such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02:

 

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(i) the aggregate amount of the requested Borrowing;

(ii) the date of such Borrowing, which shall be a Business Day;

(iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

(iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and

(v) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.04 .

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

SECTION 2.04. Funding of Borrowings .

(a) Each Lender shall make the Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City and designated by the Borrower in the Borrowing Request.

(b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.

 

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SECTION 2.05. Interest Elections .

(a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

(b) To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by no later than 12:00 noon three Business Days prior to the expiration of the current Interest Period of each Borrowing. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower.

(c) Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02:

(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

(iv) if the resulting Borrowing is a Eurodollar Borrowing,the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

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(e) If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

SECTION 2.06. Repayment of Loans; Evidence of Debt .

(a) The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan in accordance with the following schedule:

 

Payment Date    Principal Payment  

January 23, 2014

   $ 10,000,000   

January 23, 2015

   $ 20,000,000   

January 25, 2016

   $ 170,000,000   

(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from the Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

(d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.

(e) Any Lender may request that the Loan made by it be evidenced by a promissory note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loan evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04 ) be represented by one or more promissory notes in such form payable to the payee named therein (or, to such payee and its registered assigns).

 

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SECTION 2.07. Prepayment of Loans .

(a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section; provided that each such prepayment shall be in an amount that is an integral multiple of $1,000,000 and not less than $1,000,000. Any prepayment of Loans will be applied to reduce each principal payment of the Loans due pursuant to Section 2.06(a) pro rata.

(b) The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, two Business Days before the date of prepayment, or (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid. Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02 . Prepayments shall be accompanied by accrued interest to the extent required by Section 2.09 .

SECTION 2.08. Fees .

(a) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent.

(b) The Borrower agrees to pay to the Joint Bookrunners and Joint Lead Arrangers, for their own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Joint Lead Arrangers and Joint Bookrunners.

(c) Fees paid shall not be refundable under any circumstances.

SECTION 2.09. Interest .

(a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus 1.0%.

(b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus 2.0%.

(c) Notwithstanding the foregoing, following the occurrence and during the continuance of an Event of Default, the Loans shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section.

 

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(d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

(e) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

SECTION 2.10. Alternate Rate of Interest . If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

(a) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

(b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective.

SECTION 2.11. Increased Costs .

(a) If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate);

(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

 

25


(iii) impose on any Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise), then, upon request of such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.

(b) If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender’s holding company regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

(c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

(d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

SECTION 2.12. Break Funding Payments . In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.15 , then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be

 

26


the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

SECTION 2.13. Taxes .

(a) Defined Terms . For purposes of this Section 2.13 , the term “applicable Law” includes FATCA.

(b) Payments Free of Taxes . Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

(c) Payment of Other Taxes by the Borrower . The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

(d) Indemnification by the Borrower . The Borrower shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; provided that no Recipient shall be indemnified for any Indemnified Taxes hereunder unless such Recipient shall make written demand on the Borrower for such reimbursement no later than 180 days after the earlier of (i) the date on which the relevant Governmental Authority makes written demand upon such Recipient for payment of such Indemnified Taxes, and (ii) the date on which such Recipient has made payment of such Indemnified Taxes; provided further that if the Indemnified Taxes imposed or asserted giving rise

 

27


to such claims are retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

(e) Indemnification by the Lenders . Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04 relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

(f) Evidence of Payments . As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.13 , the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

(g) Status of Lenders .

(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.13(g)(ii)(A) , (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

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(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

(ii) executed originals of IRS Form W-8ECI;

(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit D-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or

(iv) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-2 or Exhibit D-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-4 on behalf of each such direct and indirect partner;

 

29


(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

(h) Treatment of Certain Refunds . If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.13 (including by the payment of additional amounts pursuant to this Section 2.13 ), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this

 

30


paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

(i) Survival . Each party’s obligations under this Section 2.13 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 2.14. Payments Generally; Pro Rata Treatment; Sharing of Set-offs .

(a) The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest or fees, or of amounts payable under Section 2.11 , Section 2.12 or Section 2.13 , or otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately available funds, without set off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 1615 Brett Rd., Building #3, New Castle, DE 19720, Attention: Bank Loans Syndications Department, Fax: (212) 994-0961, E-mail: oploanswebadmin@citi.com, except that payments pursuant to Section 2.11 , Section 2.12 , Section 2.13 and Section 9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars.

(b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties.

(c) If any Lender shall, by exercising any right of set off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be

 

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shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

(d) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

(e) If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.04(b) , Section 2.4(d) or Section 9.03(c) , then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

SECTION 2.15. Mitigation Obligations; Replacement of Lenders .

(a) If (i) any Lender requests compensation under Section 2.11 or (ii) if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.13 then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.11 or 2.13 , as the case may be, in the future and (ii) would not subject such Lender to any un-reimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

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(b) If any Lender requests compensation under Section 2.11 , or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.13 , or if any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04 ), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.13 or payments required to be made pursuant to Section 2.11 , such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

SECTION 2.16. Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

(a) The Commitments and Loans of the Defaulting Lender will not be included in determining whether all Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 9.02 ), except that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects the Defaulting Lender differently than other affected Lenders will require the consent of the Defaulting Lender;

(b) Any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 2.14(c) but excluding Section 2.15(b) ) will, in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated account and, subject to any applicable requirements of law, be applied at such time or times as may be determined by the Administrative Agent (i) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, as the Borrower may request (so long as no Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent, (iii) third, pro rata , to the payment of any amounts then owing to the Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by the Borrower or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement, and (iv) fourth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans in respect of

 

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which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.01 were satisfied and waived, such payment shall be applied solely to pay the Loans of all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with their Applicable Percentages. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

(c) If any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to be replaced in accordance with Section 2.15(b) .

(d) In the event that the Administrative Agent and the Borrower each agrees in writing that a Defaulting Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of the Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with their Applicable Percentages, whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and provided , further , that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

ARTICLE III

Representations and Warranties

The Borrower represents and warrants to the Lenders that as of the Effective Date:

SECTION 3.01. Organization; Powers . Each Loan Party and each general partner or managing member of each Loan Party is (i) duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to carry on its business as now conducted, and (iii) is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except in each case where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

SECTION 3.02. Authorization; Enforceability . The Transactions are within each Loan Party’s corporate, partnership or limited liability company powers and have been duly authorized by all necessary corporate, partnership or limited liability company action. This Agreement and each Loan Document have been duly executed and delivered by the Loan Parties thereto and constitute legal, valid and binding obligations of such Loan Parties thereto,

 

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enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

SECTION 3.03. No Undisclosed Liabilities . The Loan Parties have no material liabilities or obligations of any nature except for (i) liabilities or obligations reflected or reserved against in the financial statements described in Section 3.05 below or in the financial statements most recently delivered by the Parent (or, if a Parent Event has occurred, the Borrower) pursuant to Section 5.01 , as applicable, (ii) current liabilities incurred in the ordinary course of business since the date of such financial statements, (iii) liabilities or obligations that are not required to be included in financial statements prepared in accordance with GAAP, and (iv) those set forth in Schedule 3.03 attached to this Agreement or previously disclosed in the Parent’s filings with the SEC or otherwise disclosed in writing to the Administrative Agent and the Lenders.

SECTION 3.04. Governmental Approvals; No Conflicts . The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of any Loan Party or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon any Loan Party or its assets, or give rise to a right thereunder to require any payment to be made by any Loan Party, and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any Loan Party.

SECTION 3.05. Financial Condition; No Material Adverse Change . (a) The Borrower has heretofore furnished to the Lenders the Parent’s consolidated balance sheet and statements of income and cash flows (i) as of and for the fiscal year ended 2011, reported on by Ernst & Young L.L.P., independent public accountants, and (ii) as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2012, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Parent and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.

(a) Since December 31, 2011, no event has occurred that could reasonably expected to have a Material Adverse Effect.

SECTION 3.06. Properties . (a) Each Loan Party has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for such defects in title that would not reasonably be expected to have a Material Adverse Effect.

(a) Each Loan Party owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by such Loan Party does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

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SECTION 3.07. Litigation and Environmental Matters . (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting any Loan Party (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this Agreement or the Transactions.

(a) Except for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, no Loan Party (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.

(b) There has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.

SECTION 3.08. Compliance with Laws and Agreements . Each Loan Party is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is continuing.

SECTION 3.09. Investment Company Status . No Loan Party is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.

SECTION 3.10. Taxes . Each Loan Party has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which such Loan Party has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

SECTION 3.11. ERISA . No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 715) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan by an amount that would reasonably be expected to have a Material Adverse Effect, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of FASB ASC Topic 715) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of all such underfunded Plans by an amount that would reasonably be expected to have a Material Adverse Effect.

 

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SECTION 3.12. Disclosure . The Borrower has disclosed to the Lenders all agreements, instruments and corporate or other restrictions to which any Loan Party is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. Neither the Information Memorandum nor any of the other reports, financial statements, certificates or other information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

SECTION 3.13. Labor Matters . There are no strikes, lockouts or slowdowns against any Loan Party pending or, to the knowledge of the Borrower, threatened that could reasonably be expected to have a Material Adverse Effect. The hours worked by and payments made to employees of the Borrower and its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other Law dealing with such matters to the extent that such violation could reasonably be expected to have a Material Adverse Effect.

SECTION 3.14. Subsidiaries . Schedule 3.14 (i) lists, for each Subsidiary of the Borrower as of the date hereof, its full legal name, its jurisdiction of organization, the number of shares of capital stock or other Equity Interests outstanding and the owner(s) of such shares or Equity Interests. As of the date hereof, Parent is the sole member of the Borrower and the Borrower is the sole Subsidiary of the Parent, and (ii) contains a complete list of all of Borrower’s Material Subsidiaries.

SECTION 3.15. Margin Stock . No Loan Party is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation T, U or X of the Board), and no part of the proceeds of any Loan will be used to purchase or carry any margin stock in violation of said Regulation T, U or X or to extend credit to others for the purpose of purchasing or carrying margin stock in violation of said Regulation T, U or X.

SECTION 3.16. Licenses and Permits . Each Loan Party possesses all licenses, permits, authorizations, registrations, approvals and similar rights necessary under Law for such Person to conduct its operations as now being conducted, each of such licenses, permits, authorizations, registrations, approvals and similar rights is valid and subsisting, in full force and effect and enforceable by such Person, and such Person is in compliance with all terms, conditions or other provisions of such permits, authorizations, registrations, approvals and similar rights except where, in each case, such failure to possess, such invalidity, or such noncompliance would not reasonably be expected to have a Material Adverse Effect.

 

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SECTION 3.17. Senior Debt Status . All Indebtedness outstanding under the Loan Documents constitutes senior Indebtedness of the Borrower and ranks at least pari passu in priority of payment with all other Indebtedness owed by the Borrower, except Indebtedness of the Borrower which may be secured by Permitted Encumbrances permitted pursuant to Section 6.02.

SECTION 3.18. Leases . Each Lease to which any Loan Party is a party is in full force and effect and there is no default thereunder and no event has occurred or is occurring which after notice or lapse of time or both will result in such default, except for defaults which could not reasonably be expected to have a Material Adverse Effect. Each lessee under the Leases is paying royalties currently due under its respective Lease directly to Borrower or its Subsidiaries and, with the exception of payment of the minimum royalties required thereunder, lessee has not prepaid any sums payable by any lessee under any of the Leases, except to the extent such non-payment or prepayment could not reasonably be expected to have a Material Adverse Effect. There is no consent or approval required under any Lease with respect to this Agreement or the consummation of the Transactions which has not been obtained.

SECTION 3.19. Solvency . After giving effect to the Loans and the terms of this Agreement, the Borrower is, and will be, individually and together with (i) its Subsidiaries, and (ii) prior to the occurrence of a Parent Event, the Parent, Solvent.

SECTION 3.20. Foreign Assets Control Regulation . Borrower’s use of the proceeds of the Loans will not violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto.

SECTION 3.21. Representations Regarding the Parent . Prior to the occurrence of a Parent Event (i) the Parent has not amended its charter or by-laws or other constituent documents in any manner that would materially and adversely affect the rights of the Lenders under this Agreement or their ability to enforce the same; (ii) the Parent has not changed the end of its fiscal year to a date other than December 31; (iii) the Parent has not engaged in any business that a master limited partnership would not be entitled to engage in pursuant to applicable Law; (iv) the Parent has not made any changes to the Omnibus Agreement that the Borrower and its Subsidiaries would be prohibited from making pursuant to Section 6.15 of this Agreement; and (v) the Parent has kept proper books of record and account in which full, true and correct entries have been made of all dealings and transactions in relation to its business and activities.

ARTICLE IV

Conditions

SECTION 4.01. Effective Date . The obligations of the Lenders to make Loans hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02 ):

 

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(a) The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement, a Guaranty Agreement executed by each of the Guarantors and all other documents required by Lender in connection with this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement and all other documents required by Lender in connection with this Agreement.

(b) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of Vinson Elkins LLP, counsel for the Borrower, relating to the Parent, the Borrower and its Subsidiaries, this Agreement or the Transactions and any other matters as the Required Lenders shall reasonably request. The Borrower hereby requests such counsel to deliver such opinion.

(c) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of the general counsel of the Borrower, relating to the Parent, the Borrower and its Subsidiaries, this Agreement or the Transactions and any other matters as the Required Lenders shall reasonably request.

(d) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Borrower, Parent and the General Partner, the authorization of the Transactions and any other legal matters relating to the Borrower, Parent and the General Partner, this Agreement or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel.

(e) The Administrative Agent and the Joint Lead Arrangers and Joint Bookrunners shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all out of pocket expenses required to be reimbursed or paid by the Borrower hereunder.

(f) The Lenders shall have received (i) satisfactory audited consolidated financial statements of the Parent and its Subsidiaries for the period ended December 31, 2011 and (ii) satisfactory unaudited interim consolidated financial statements of the Borrower for the quarterly period ended September 30, 2012.

(g) No event shall have occurred since December 31, 2011 with respect to the Parent, the Borrower and its Subsidiaries, taken as a whole, which has had, or could reasonably be expected to have, a Material Adverse Effect.

(h) The representations and warranties of the Borrower set forth in this Agreement shall be true and correct in all material respects on and as of the date of such Borrowing, except to the extent any such representation or warranty is stated to relate to an earlier date in which case such representation and warranty will be true and correct on and as of such earlier date.

 

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(i) At the time of and immediately after giving effect to such Borrowing, no Default or Event of Default shall have occurred and be continuing.

(j) The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or a Financial Officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (h) and (i) of this Section 4.01 .

(k) The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 3:00 p.m., New York City time, on January 23, 2013 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

ARTICLE V

Affirmative Covenants

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants and agrees with the Lenders that:

SECTION 5.01. Financial Statements; Ratings Change and Other Information . The Borrower will furnish to the Administrative Agent and each Lender:

(a) within 90 days after the end of each fiscal year of the Parent (or, if a Parent Event has occurred, the Borrower), on EDGAR (or (i) upon the request of any Lender, the Borrower shall provide a copy of such statement or report described below to any Lender that does not have access to EDGAR, or (ii) if a Parent Event has occurred or such statement or report is no longer available on EDGAR for any reason, a copy of such statement or report described below to each Lender and the Administrative Agent), the Parent’s (or, if a Parent Event has occurred, the Borrower’s) audited consolidated balance sheet and related statements of operations, partners’ capital and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Ernst & Young L.L.P. or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Parent, the Borrower and its consolidated Subsidiaries (or, if a Parent Event has occurred, the Borrower and its consolidated Subsidiaries) on a consolidated basis in accordance with GAAP consistently applied;

(b) within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Parent on EDGAR (or (i) upon the request of any Lender, the Borrower shall provide a copy of such statement or report described below to any Lender that does not have access to EDGAR, or (ii) if a Parent Event has occurred or such statement or report is no

 

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longer available on EDGAR for any reason, a copy of such statement or report described below to each Lender and the Administrative Agent), the Parent’s (or, if a Parent Event has occurred, the Borrower’s) consolidated balance sheet and related statements of operations and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of the Parent’s (or, if a Parent Event has occurred, the Borrower’s) Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Parent, the Borrower and its consolidated Subsidiaries (or, if a Parent Event has occurred, the Borrower and its consolidated Subsidiaries) on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;

(c) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 6.17 and Section 6.18 , and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the last audited financial statements delivered pursuant to Section 5.01(a) above and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;

(d) promptly after the same become publicly available, on EDGAR (or (i) upon the request of any Lender, the Borrower shall provide a copy of such statement or report described below to any Lender that does not have access to EDGAR, or (ii) if a Parent Event has occurred or such statement or report is no longer available on EDGAR for any reason, a copy of such statement or report described below to each Lender and the Administrative Agent) copies of all periodic and other reports, proxy statements and other materials filed by the Parent, the Borrower or any Subsidiary with the SEC, or with any national securities exchange, as the case may be; and

(e) promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Parent, the Borrower or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request.

SECTION 5.02. Notices of Material Events . The Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the following:

(a) the occurrence of any Default of which Borrower has, or could reasonably be expected to have, knowledge;

(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting the Parent, the Borrower or any Subsidiary thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

 

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(c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Parent, the Borrower and its Subsidiaries in an aggregate amount that could reasonably be expected to have a Material Adverse Effect; and

(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

SECTION 5.03. Existence; Conduct of Business . The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business except where the failure to do so in each case could not reasonably be expected to have a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03 .

SECTION 5.04. Payment of Obligations . The Borrower will cause each of its Subsidiaries to, pay its obligations before the same shall become delinquent or in default, including Tax liabilities, that, if not paid, could result in a Material Adverse Effect, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP, and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect.

SECTION 5.05. Maintenance of Properties; Insurance . The Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition in accordance with industry practice, ordinary wear and tear excepted, and (b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations.

SECTION 5.06. Books and Records; Inspection Rights . The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice and subject to applicable safety rules and regulations, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested.

 

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SECTION 5.07. Compliance with Laws . The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

SECTION 5.08. Use of Proceeds . The proceeds of the Loans will be used only (i) to finance in part the Acquisition; (ii) to pay the fees, expenses and other transaction costs of the Transactions contemplated hereby, and (iii) for general corporate purposes, including capital expenditures and acquisitions. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Board, including Regulations T, U and X.

SECTION 5.09. Compliance with ERISA . In addition to and without limiting the generality of Section 5.07, the Borrower shall, and shall cause its Subsidiaries to, (a) comply in all material respects with all applicable provisions of ERISA and the regulations and published interpretations thereunder with respect to all employee benefit plans (as defined in ERISA), (b) not take any action or fail to take action the result of which could be (i) a liability to the PBGC or (ii) a past due liability to any Multiemployer Plan, (c) not participate in any prohibited transaction that could result in any civil penalty under ERISA or any tax under the Code, and (d) operate each employee benefit plan in such a manner that will not incur any tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code, except to the extent, in each of (a), (b), (c) and (d), where the failure to do so would not reasonably be expected to result in a Material Adverse Effect. The Borrower shall, and shall cause its Subsidiaries to, furnish to the Administrative Agent upon the Administrative Agent’s request such additional information about any employee benefit plan sponsored, maintained or contributed to by any of said Persons and/or the Parent, as may be reasonably requested by the Administrative Agent.

SECTION 5.10. Compliance with Environmental Laws; Environmental Reports . (i) In addition to and without limiting the generality of Section 5.07 , the Borrower shall, and shall cause its Subsidiaries to, (i) comply in all material respects with all Environmental Laws applicable to its operations and real property except where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect; (ii) obtain and renew all material Governmental Approvals required under Environmental Laws applicable to its operations and real property except where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect; and (iii) conduct any Response legally required by Borrower or any of its Subsidiaries in accordance with applicable Environmental Laws except where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

SECTION 5.11. Further Assurances . The Borrower will, and will cause its Subsidiaries to, at its own cost and expense, to promptly (i) correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof and (ii) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments the Administrative Agent may reasonably require from time to time in order to carry out more effectively the purposes of the Loan Documents.

 

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SECTION 5.12. Leases; Material Contracts . The Borrower will perform and observe, or cause to be performed and observed, all of the covenants and conditions required to be performed by it or any of its Subsidiaries under each Lease, except where such failure could not reasonably be expected to have a Material Adverse Effect. The Borrower will promptly notify the Administrative Agent in writing of the receipt by the Borrower or any Subsidiary of any notice from any third party to the Borrower or any Subsidiary of any material default under, or the termination of, any Material Contract pursuant to the provisions of such Material Contract, and will promptly cause a copy of each such notice received by the Borrower or any Subsidiary from any third party to be delivered to the Administrative Agent.

SECTION 5.13. Guaranties . Immediately upon the formation or acquisition of any entity which meets the definition of a Guarantor, or upon a Subsidiary becoming a Material Subsidiary, such Guarantor shall execute and deliver to the Administrative Agent for the benefit of the Lenders a Guaranty Agreement substantially in the form of Exhibit B attached hereto; provided however that upon satisfaction by the Borrower of the conditions set forth in Section 9.17 hereof, the provisions of this Section 5.13 shall no longer be applicable.

ARTICLE VI

Negative Covenants

Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full, the Borrower covenants and agrees with the Lenders that:

SECTION 6.01. Indebtedness . The Borrower will not, and will not permit any Subsidiary that is a Guarantor to, create, incur, assume or permit to exist any Indebtedness, except:

(a) Indebtedness created hereunder or under the Revolving Credit Agreement;

(b) unsecured Indebtedness of the Borrower so long as the incurrence or maintenance of such Indebtedness does not cause a Default or an Event of Default under any other provision of this Agreement;

(c) Indebtedness existing on the date hereof and set forth in Schedule 6.01 , and any extensions, refinancing, renewals or replacements of any such Indebtedness; provided that such Indebtedness is not increased in connection therewith except for increases in an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such extension, renewal, refinancing, or replacement and in an amount equal to any existing commitments unutilized thereunder, and is not secured by any additional assets;

 

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(d) purchase money Indebtedness (including Capital Lease Obligations) of the Borrower or any of its Subsidiaries representing the portion of the purchase price of any office equipment, data processing equipment (including, without limitation, computer and computer peripheral equipment), trucks, tractors, trailers and other transportation equipment which may be secured by Liens permitted under Section 6.02 ; provided that the aggregate principal amount of Indebtedness permitted by this clause (d) shall not exceed $25,000,000 at any time outstanding;

(e) any Indebtedness incurred or assumed in connection with any transaction or acquisition permitted by Section 6.19 hereof;

(f) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary;

(g) Guarantees by the Borrower or any Guarantor of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of the Borrower or any other Subsidiary;

(h) Indebtedness consisting of surety bonds that the Borrower or any Subsidiary is required to obtain in order to comply with applicable Law or the requirements of any Governmental Authority;

(i) Indebtedness in respect of Swap Agreements incurred in the ordinary course of business and consistent with prudent business practice and not for speculative purposes;

(j) Investments permitted under Section 6.04 that would constitute Indebtedness; and

(k) the Contingent Purchase Price Obligation Payment (as defined in Section 2.6 of the Purchase Agreement).

SECTION 6.02. Liens . The Borrower will not, and will not permit any Subsidiary that is a Guarantor to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:

(a) Permitted Encumbrances;

(b) any Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and set forth in Schedule 6.02 ; provided that (i) such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof and any extensions, renewals and replacements thereof;

(c) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and any extensions, renewals and replacements thereof;

 

 

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(d) Liens securing the Indebtedness permitted by clause (d) of Section 6.01 and placed on the property described therein contemporaneously with the purchase thereof or within 90 days thereafter, by the Borrower or any of its Subsidiaries to secure all or a portion of the purchase price thereof; provided that such Lien shall not extend to any other property or assets of the Borrower or its Subsidiaries;

(e) Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary; provided that (i) such security interests and the Indebtedness secured thereby are incurred prior to or within 180 days after such acquisition or the completion of such construction or improvement, (ii) the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital assets and (iii) such security interests shall not apply to any other property or assets of the Borrower or any Subsidiary;

(f) any interest or title of a lessor under any lease entered into by the Borrower or any of its Subsidiaries in the ordinary course of its business and covering only the assets so leased, and any interest of a landowner in the case of easements entered into by the Borrower or any of its Subsidiaries in the ordinary course of its business and covering only the property subject to the easement;

(g) Liens not otherwise permitted by this Section so long as the aggregate outstanding principal amount of the obligations secured thereby does not exceed (as to the Borrower and all its Subsidiaries) at any one time, (i) if the Borrower has not achieved an Investment Grade Rating, $25,000,000 or, (ii) if the Borrower has achieved an Investment Grade Rating, 10% of Consolidated Net Tangible Assets;

(h) any Lien created or assumed by the Borrower or any Subsidiary in connection with the issuance of Indebtedness, the interest on which is excludable from gross income of the holder of such Indebtedness pursuant to the Code, for the purpose of financing, in whole or in part, the acquisition or construction of property or assets to be used by the Borrower or its Subsidiaries;

(i) Liens on any additions, improvements, replacements, repairs, fixtures, appurtenances or component parts thereof attaching to or required to be attached to property or assets pursuant to the terms of any mortgage, pledge agreement, security agreement or other similar instrument, creating a Lien upon such property or asset otherwise permitted under this Section;

(j) any Liens arising out of the refinancing, extension, renewal or refunding of any Indebtedness secured by any Lien permitted by any of the foregoing clauses of this Section, provided that such Indebtedness is not increased except for increases in an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such extension, renewal, refinancing, or replacement and in an amount equal to any existing commitments unutilized thereunder, and is not secured by any additional assets; and

 

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(k) Liens securing Indebtedness permitted by Section 6.01(e) ; provided that the Indebtedness secured thereby does not exceed 100% of the fair market value of the assets or Equity Interests acquired in such transaction or acquisition.

SECTION 6.03. Fundamental Changes . Neither the Borrower nor any Subsidiary that is a Guarantor will merge or consolidate with or into any other Person nor shall any Subsidiary that is a Guarantor liquidate or dissolve, except that if before and after giving effect to such merger or consolidation, there exists no Default or Event of Default (A) the Borrower or any Subsidiary may merge or consolidate with any Person so long as the Borrower or such Subsidiary is the surviving Person; (B) a Subsidiary may merge into the Borrower in a transaction in which the Borrower is the surviving Person; (C) a Subsidiary may merge into any other Subsidiary; and (D) any Subsidiary may liquidate or dissolve if such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders.

SECTION 6.04. Investments, Loans, Advances and Guarantees . The Borrower will not, and will not permit any of its Subsidiaries that are Guarantors to, purchase or acquire (including pursuant to any merger with any Person that was not a wholly-owned Subsidiary prior to such merger) any capital stock, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, or make any loans or advances to, or Guarantee any Indebtedness of, or make any investment in, any other Person, except that, so long as no Default or Event of Default shall have occurred and be continuing or will result therefrom, the Borrower and its Subsidiaries may make:

(a) Permitted Investments;

(b) investments by the Borrower in the Equity Interests of its Subsidiaries and investments by any Subsidiary in the Borrower or any other Subsidiary; provided, that unless Borrower has achieved an Investment Grade Rating the aggregate of all loans and investments made under sub-sections 6.04(b) and (c)  in Subsidiaries, other than Material Subsidiaries, shall not exceed $25,000,000;

(c) loans or advances made by the Borrower to any Subsidiary and made by any Subsidiary to the Borrower or any other Subsidiary; provided, that unless Borrower has achieved an Investment Grade Rating the aggregate of all loans and investments made under sub-sections 6.04(b) and (c)  in Subsidiaries, other than Material Subsidiaries, shall not exceed $25,000,000;

(d) Guarantees constituting Indebtedness permitted by Section 6.01 ;

(e) investments consisting of non-cash consideration with respect to any sale of assets by the Borrower or any Subsidiary;

(f) Swap Agreements to the extent permitted under Section 6.05 ;

 

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(g) any purchases or other acquisitions of all or substantially all of the Equity Interests in any Person permitted by Section 6.19 ; provided that, immediately upon consummation thereof, such Person will be a Guarantor if required by Section 5.13 (including, without limitation, as a result of a merger or consolidation otherwise permitted under this Agreement);

(h) investments consisting of extensions of credit, including without limitation, in the nature of accounts receivable arising from the grant of trade credit or prepayments or similar transactions entered into in the ordinary course of business and investments by the Borrower or any Subsidiary in satisfaction or partial satisfaction thereof from financially troubled account debtors to prevent or limit financial loss;

(i) to the extent not prohibited by Law, loans and advances to the officers, directors and employees of the Borrower and its Subsidiaries made from time to time in the ordinary course of business; provided that the aggregate amount of investments permitted by this clause (i) shall not exceed $1,000,000 at any time outstanding;

(j) investments in interests, including but not limited to royalties and overriding royalties, in coal, hydrocarbons or other minerals;

(k) investments (valued at the time such investment is made) not otherwise permitted by this Section 6.04 in an aggregate amount not to exceed the greater of (i) $25,000,000 or (ii) 5% of Consolidated Net Tangible Assets at any time outstanding;

(l) investments (valued at the time such investment is made) in Joint Ventures not in excess of $10,000,000 at any time outstanding;

(m) investments consisting of Restricted Payments permitted under Section 6.06 ;

(n) investments held by a Person acquired pursuant to Section 6.19 ; and

(o) investments in the Purchased Interests (as defined in the Purchase Agreement).

SECTION 6.05. Swap Agreements . The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any of its Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate, from floating to fixed rates or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Subsidiary.

SECTION 6.06. Restricted Payments . The Borrower will not, and will not permit any of its Subsidiaries that are Guarantors to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payments, except that so long as no Default or Event of Default shall have occurred and be continuing and provided that no Default or Event of Default would result from the making of such Restricted Payment:

 

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(a) any Subsidiary may make Restricted Payments with respect to Equity Interests in such Subsidiary;

(b) the Borrower may declare, make or incur a liability to make distributions to the Parent to fund Quarterly Distributions; provided that (A) such Quarterly Distributions are made in accordance with the provisions of the Partnership Agreement, and (B) the aggregate amount of Quarterly Distributions made by the Parent with respect to any fiscal quarter shall not exceed Available Cash for such fiscal quarter;

(c) the Borrower may declare and pay dividends or distributions with respect to its Equity Interests payable solely in additional Equity Interests of the Borrower;

(d) the Borrower may make repurchases of its Equity Interests;

(e) the Borrower may make special distributions to the Parent in connection with any acquisition permitted under Section 6.19 in an amount, for any such acquisition, not greater than the aggregate value of the consideration for the property or assets acquired.

SECTION 6.07. Transactions with Affiliates . Except as otherwise permitted hereunder, the Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (a) as permitted by the Partnership Agreement, and (b) transactions between or among the Borrower and its Subsidiaries not involving any other Affiliate.

SECTION 6.08. Sales of Assets . Neither the Borrower nor any Subsidiary that is a Guarantor shall enter into any arrangement, direct or indirect, with any Person other than a Loan Party pursuant to which the Borrower or such Subsidiary shall sell or otherwise transfer or dispose of any property, real, personal or mixed, whether now owned or hereafter acquired, except (i) sales, transfers or dispositions in the ordinary course of business and the granting of any option or other right to purchase or otherwise acquire property in the ordinary course of business, (ii) sales, transfers or dispositions not in the ordinary course of business provided that the aggregate proceeds of all such sales, transfers and dispositions permitted by this item (ii) shall not exceed, from the date hereof during any period of twelve (12) consecutive months more than $50,000,000 and further provided that to the extent such sales, transfers and dispositions aggregate less than $25,000,000 during any period of twelve (12) consecutive months, such unexpended amounts of less than $25,000,000 may be carried forward and expended during the next period of twelve (12) consecutive months but not any subsequent period of twelve (12) consecutive months and all such sales, transfers and dispositions are deemed to apply first to the carried forward amounts, (iii) sales of wetlands credits, (iv) sales, transfers or dispositions of property that are no longer commercially viable to maintain or obsolete, surplus or worn-out property, whether now owned or hereafter acquired, (v) sales, transfers or dispositions of equipment or real property to the extent that (A) such equipment or real property is exchanged for credit against the purchase price of similar replacement equipment or real property, or (B) the

 

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proceeds of such sales, transfers or dispositions are reasonably promptly, but in any event within 360 days, applied to the purchase price of such replacement equipment or real property, (vi) the sale, transfer or disposition of certain timber properties more specifically described on Schedule 6.08 , (vii) dispositions resulting from the bona fide exercise by a Governmental Authority of its actual power of eminent domain or other dispositions otherwise required by applicable law, and (viii) dispositions of property subject to a Permitted Encumbrance that are transferred to a lienholder or its designee in satisfaction or settlement of the lienholder’s claim or a realization upon a security interest permitted under this Agreement.

SECTION 6.09. Constituent Documents . The Borrower will not, and will not permit any Subsidiary that is a Guarantor to, amend its charter or by-laws or other constituent documents in any manner that could reasonably be expected to materially and adversely affect the rights of the Lenders under this Agreement or their ability to enforce the same.

SECTION 6.10. Regulation T, U and X Compliance . The Borrower shall not and shall not permit any Subsidiary to use the proceeds of the Loans to purchase or carry Margin Stock (as defined in Regulation U), or otherwise act so as to cause any Lender, in extending credit hereunder, to be in contravention of Regulations T, U or X.

SECTION 6.11. Sales and Leasebacks . Except to the extent such leases in the aggregate would not require total payments of more than $10,000,000 per annum, the Borrower shall not, and shall not permit any of its Subsidiaries that are Guarantors to, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any property (whether real, personal or mixed), whether now owned or hereafter acquired that (i) the Borrower or any of its Subsidiaries that are Guarantors has sold or transferred or is to sell or transfer to any other Person (other than the Borrower or any of its Subsidiaries) or (ii) the Borrower or any of its Subsidiaries that are Guarantors intends to use for substantially the same purpose as any other property that has been or is to be sold or transferred by the Borrower or any of its Subsidiaries that are Guarantors to any Person (other than the Borrower or any of its Subsidiaries) in connection with such lease.

SECTION 6.12. Changes in Fiscal Year . The Borrower shall not change the end of its fiscal year to a date other than December 31.

SECTION 6.13. Change in the Nature of Business . The Borrower shall not engage directly or indirectly in any business activity that would cause less than 90% of the gross income of the Borrower to constitute “qualifying income” within the meaning of Section 7704(d) of the Code.

SECTION 6.14. Limitation on Restrictions on Subsidiary Distributions . The Borrower shall not, and shall not permit any of its Subsidiaries that are Guarantors to enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of such Subsidiary to make Restricted Payments in respect of any Equity Interests of such Subsidiary held by, or pay any Indebtedness owed to, the Borrower or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by applicable Law or by this Agreement, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof (but shall apply to any extension or renewal of, or any

 

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amendment or modification expanding the scope of, any such restriction or condition) to the extent such restrictions are listed on Schedule 6.14 attached hereto, (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, and (iv) the foregoing shall not apply to restrictions and conditions contained in the documentation evidencing any Indebtedness permitted hereunder; provided that in no event shall such restrictions and conditions contained in such documentation evidencing such permitted Indebtedness be more restrictive than the restrictions and conditions set forth in Section 6.06 of this Agreement and this Section 6.14 .

SECTION 6.15. Changes to the Omnibus Agreement . Without the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld or delayed, neither the Borrower nor any of its Subsidiaries shall (i) make any material change to the terms of the Omnibus Agreement, (ii) release any party from its obligations under the Omnibus Agreement or (iii) fail to diligently enforce the Omnibus Agreement and avail itself of the rights and indemnities available thereunder, except in each case, where such change, release or failure could not reasonably be expected to have a Material Adverse Effect.

SECTION 6.16. Changes to the Note Purchase Agreements . The Borrower will not agree to, and will not permit any amendment to the Note Purchase Agreements which would (i) make the covenants in Section 10 of the Note Purchase Agreements more restrictive on the Borrower than the corresponding financial covenants in Section 6.17 and Section 6.18 hereof or (ii) make the events of default in Section 11 of the Note Purchase Agreements more restrictive on the Borrower than the Events of Default hereunder, in each case, without the consent of the Required Lenders; provided, however, that in no event shall the covenants set forth in Section 10 of the Note Purchase Agreements and the events of default set forth in the Note Purchase Agreements as in effect on the date hereof be deemed to be more restrictive than the corresponding covenants set forth in Section 6.17 and Section 6.18 and the Events of Default hereunder. If there is in existence a Default or Event of Default, the Borrower will not make any voluntary prepayments of principal or interest on the notes outstanding under the Note Purchase Agreements.

SECTION 6.17. Minimum Interest Coverage Ratio . The Borrower shall not permit the Interest Coverage Ratio as of the last day of any fiscal quarter to be less than 3.5 to 1.0.

SECTION 6.18. Maximum Leverage Ratio . The Borrower shall not permit the Leverage Ratio as of the last day of any fiscal quarter to exceed 4.0 to 1.0.

SECTION 6.19. Permitted Acquisitions . The Borrower shall not, except as otherwise permitted or required in this Agreement, purchase or otherwise acquire, or permit any Subsidiary that is a Guarantor to purchase or acquire, the majority of the Equity Interests in, or all or substantially all of the assets of, any Person unless (i) permitted by Sections 6.03 or 6.04 above, or (ii) (a) immediately prior to and after giving effect to any such purchase or acquisition, no Default or Event of Default shall have occurred or be continuing or will result therefrom, (b) such purchase or acquisition is consummated in accordance with applicable Law, and (c) immediately after giving effect to such purchase or acquisition of a company or business

 

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pursuant to this Section 6.19 , the Borrower shall be in pro forma compliance with the covenants set forth in Section 6.17 and Section 6.18 above, as evidenced by a certificate of the chief financial officer of the Borrower delivered to the Administrative Agent on the earlier of (i) the date that Borrower submits a Borrowing Request if Borrower is making a Borrowing in connection therewith, or (ii) the date that Borrower consummates the transaction requiring the delivery of such certificate.

ARTICLE VII

Events of Default

If any of the following events (“ Events of Default ”) shall occur:

(a) the Borrower shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three Business Days;

(c) any representation or warranty made or deemed made by or on behalf of any Loan Party in or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect in any material respect when made or deemed made;

(d) any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02 , 5.03 (with respect to existence) or 5.08 or in Article VI ;

(e) any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Article) or in any other Loan Document, and such failure shall continue unremedied for a period of 30 days after notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender);

(f) any Loan Party shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable or within any applicable grace period;

(g) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness;

 

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(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Loan Party or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;

(i) any Loan Party shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

(j) any Loan Party shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

(k) one or more final non-appealable judgments for the payment of money in an aggregate amount in excess of $25,000,000 (net of insurance coverage which is reasonably expected to be paid by the insurer thereunder as confirmed by such insurer) shall be rendered against any Loan Party or any combination thereof and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of any Loan Party to enforce any such judgment and is not released, vacated or fully bonded within 60 days after its attachment or levy;

(l) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Parent, the Borrower and its Subsidiaries in an aggregate amount that could reasonably be expected to have a Material Adverse Effect;

(m) a Change in Control shall occur;

(n) this Agreement or any other Loan Document ceases to be valid and binding on any Loan Party in any material respect or is declared null and void in any material respect, or the validity or enforceability thereof is contested by any Loan Party or any Loan Party denies it has any or further liability under this Agreement or under the other Loan Documents to which it is a party;

 

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(o) prior to the occurrence of a Parent Event, the Parent fails to keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business except where the failure to do so in each case could not reasonably be expected to have a Material Adverse Effect; or

(p) prior to the occurrence of a Parent Event, any of the following events occur and continue unremedied for a period of thirty (30) days after notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) (i) the Parent fails to pay its obligations before the same shall become delinquent or in default, including Tax liabilities, that, if not paid, could result in a Material Adverse Effect, except where (A) the validity or amount thereof is being contested in good faith by appropriate proceedings, (B) the Parent has set aside on its books adequate reserves with respect thereto in accordance with GAAP, and (C) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect; (ii) the Parent fails to permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice and subject to applicable safety rules and regulations, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; (iii) the Parent fails to comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect; or (iv) (A) the Parent fails to comply in all material respects with all applicable provisions of ERISA and the regulations and published interpretations thereunder with respect to all employee benefit plans (as defined in ERISA), (B) the Parent takes any action, or fails to take action, the result of which could be a liability to the PBGC or a past due liability to any Multiemployer Plan, (C) the Parent participates in any prohibited transaction that could result in any civil penalty under ERISA or any tax under the Code, or (D) the Parent does not operate each employee benefit plan in such a manner that will not incur any tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code except to the extent, in each case, where the failure to do so would not reasonably be expected to result in a Material Adverse Effect;

then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

 

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ARTICLE VIII

The Administrative Agent

Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.

The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder.

The Administrative Agent shall not have any duties or obligations except those expressly set forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02 ), and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02 ) or in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

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The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with the consent of the Borrower (which consent shall not be unreasonably withheld, conditioned or delayed), to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any related agreement or any document furnished hereunder or thereunder.

Anything herein to the contrary notwithstanding, none of Joint Lead Arrangers, Joint Bookrunners or Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender hereunder.

 

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ARTICLE IX

Miscellaneous

SECTION 9.01. Notices . (a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy (or sent by email as set forth in Section 9.01(c) below), as follows:

(i) if to the Borrower, to it at 601 Jefferson, Suite 3600, Houston, Texas 77002, Attention of Dwight L. Dunlap (Telecopy No. (281) 657-8014; Email address: ddunlap@quintanaminerals.com );

(ii) if to the Administrative Agent, to it at 1615 Brett Rd., Building #3, New Castle, DE 19720, Attention: Bank Loans Syndications Department, Fax: (212) 994-0961, E-mail: oploanswebadmin@citi.com; and

(iii) if to any other Lender, to it at its address (or telecopy number or email address) set forth in its Administrative Questionnaire.

(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

(c) The Borrower hereby agrees that it will provide to the Administrative Agent all information, documents and other materials that it is obligated to furnish to the Administrative Agent pursuant to the Loan Documents, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) relates to a request for a new, or a conversion of an existing, borrowing or other extension of credit (including any election of an interest rate or interest period relating thereto), (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any default or event of default under this Agreement, or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any borrowing or other extension of credit thereunder (all such non-excluded communications being referred to herein collectively as “ Communications ”), by transmitting the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to “ oploanswebadmin@citigroup.com ”. In addition, the Borrower agrees to continue to provide the Communications to the Administrative Agent in the manner specified in the Loan Documents but only to the extent requested by the Administrative Agent.

 

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The Borrower further agrees that the Administrative Agent may make the Communications available to the Lenders by posting the Communications on Intralinks or a substantially similar electronic transmission systems (the “ Platform ”). The Borrower acknowledges that the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution.

The Platform is provided “as is” and “as available”. The Agent Parties (as defined below) do not warrant the accuracy or completeness of the Communications, or the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by the agent parties in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its affiliates or any of their respective officers, directors, employees, agents, advisors or representatives (collectively, “ Agent Parties ”) have any liability to the Borrower, any Lender or any other person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Communications through the internet, except to the extent the liability of any agent party is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted primarily from such Agent Party’s gross negligence or willful misconduct.

The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to the Administrative Agent for purposes of the Loan Documents. Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender agrees to notify the Administrative Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail address to which the foregoing notice may be sent by electronic transmission, and (ii) that the foregoing notice may be sent to such e-mail address. Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

(d) Any party hereto may change its address, telecopy number or email address for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

SECTION 9.02. Waivers; Amendments . (a) No failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or

 

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further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent or any Lender may have had notice or knowledge of such Default at the time.

(a) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders (other than any Defaulting Lender) or by the Borrower and the Administrative Agent with the consent of the Required Lenders (other than any Defaulting Lender); provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.14(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) release any Guarantor, or (vi) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder without the prior written consent of the Administrative Agent.

SECTION 9.03. Expenses; Indemnity; Damage Waiver . (a) The Borrower shall pay (i) all reasonable out of pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of one counsel for the Administrative Agent, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the Transactions contemplated hereby or thereby shall be consummated), and (ii) all reasonable out-of-pocket expenses incurred by the Administrative Agent or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made hereunder, including all such out-of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.

(a) The Borrower shall indemnify the Administrative Agent, the Joint Lead Arrangers and Joint Bookrunners and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “ Indemnitee ”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses,

 

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including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or the use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

(b) To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent such Lender’s Applicable Percentage (determined as of the time that the applicable un-reimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the un-reimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent in its capacity as such.

(c) Each Loan Party shall defend and indemnify the Administrative Agent and each Lender and hold them harmless from and against all loss, liability, damage, expense, claims, costs, fines, penalties, assessments (including interest on any of the foregoing) and reasonable attorneys’ fees, suffered or incurred by the Administrative Agent or any Lender which arise, result from or in any way relate to a breach or violation by any Loan Party of any applicable Environmental Laws, either prior to or subsequent to the date hereof, including the assertion or imposition of any Lien on any Loan Party’s assets, or which relate to or arise out of any Environmental Liability. Each Loan Party’s obligations hereunder shall survive the termination of this Agreement and the repayment of the Loans.

(d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or the use of the proceeds thereof.

(e) All amounts due under this Section shall be payable not later than ten (10) days after written demand therefor.

SECTION 9.04. Successors and Assigns . (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and

 

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void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

(a) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of:

(A) the Borrower, provided that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; and

(B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment to a Lender, an Affiliate of a Lender or an Approved Fund.

(ii) Assignments shall be subject to the following additional conditions:

(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000, and in increments of $1,000,000 in excess thereof, unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

(B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement;

(C) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500;

(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and

(E) the assignee must not be a Defaulting Lender.

 

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Nothing herein shall limit the right of a Lender to pledge or assign any rights under the Loan Documents to any Federal Reserve Bank or the United States Treasury as collateral security pursuant to Regulation A of the Board and any Operating Circular issued by such Federal Reserve Bank. For the purposes of this Section 9.04(b) , the term “ Approved Fund ” has the following meaning:

Approved Fund ” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.11 , 2.12 , 2.13 and 9.03 ). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section.

(iv) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “ Register ”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

(v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register;

 

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provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.04(b) , Section 2.14(d) or Section 9.03(c) , the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

(b) (i) Any Lender may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (a “ Participant ”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Section 2.11 , Section 2.12 and Section 2.13 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant agrees to be subject to the provisions of Section 2.15 as it were an assignee under paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.14(c) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “ Participant Register ”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

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(i) A Participant shall not be entitled to receive any greater payment under Section 2.11 or 2.13 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.13 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.13(e) as though it were a Lender.

(c) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that (i) no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto and (ii) such Lender delivers to Borrower and Administrative Agent written notice thereof.

SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid and so long as the Commitments have not expired or terminated. The provisions of Sections 2.11 , 2.12 , 2.13 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the Transactions contemplated hereby, the repayment of the Loans, the expiration and the Commitments or the termination of this Agreement or any provision hereof.

SECTION 9.06. Counterparts; Integration; Effectiveness . This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01 , this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

 

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SECTION 9.07. Severability . Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

SECTION 9.08. Right of Setoff . If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process . (a) This Agreement shall be construed in accordance with and governed by the law of the State of New York.

(a) The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction.

(b) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(c) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01 . Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

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SECTION 9.10. WAIVER OF JURY TRIAL . EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION 9.11. Headings . Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 9.12. Confidentiality . Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable Laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent or any Lender on a non-confidential basis from a source other than the Borrower. For the purposes of this Section, “ Information ” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Administrative Agent or any Lender on a non-confidential basis prior to disclosure by the Borrower; provided that, in the case of information received from the Borrower after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

SECTION 9.13. Interest Rate Limitation . Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “ Charges ”), shall exceed the maximum lawful rate (the “ Maximum Rate ”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder,

 

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together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

SECTION 9.14. USA PATRIOT Act . Each Lender that is subject to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “ Act ”) hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act.

SECTION 9.15. Separateness . The Lenders acknowledge that (i) the Lenders have advanced funds to the Borrower in reliance upon the separateness of the Parent and the Borrower from each other and from any other Persons, and (ii) the Borrower has assets and liabilities that are separate from those of other Persons, including the Parent.

SECTION 9.16. No Personal Liability of Directors, Officers, Employees and Unitholders . No director, officer, partner, employee, member or manager of the General Partner will have any liability for any obligations of the Borrower, or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Lender waives and releases all such liability. This waiver and release are part of the consideration for the making of the Loans.

SECTION 9.17. Release of Guaranty Agreements . Upon simultaneous satisfaction of the following conditions precedent, the Lenders will execute, at Borrower’s expense, a release of all Guaranty Agreements: (a) Borrower achieves an Investment Grade Rating, (b) the representations and warranties set forth in Article III of this Agreement are true and correct; and (c) no Default or Event of Default has occurred and is continuing or would result under this Agreement or the other Loan Documents, as same are amended as set forth in the following sentence. Immediately upon satisfaction of the conditions precedent set forth above, the Agreement shall be deemed amended without further action to delete Section 6.01 in its entirety and replace same with the following:

“SECTION 6.01. Indebtedness . The Borrower will not, and will not permit any Subsidiary to create, incur, assume or permit to exist any Indebtedness, except, without duplication, (a) Indebtedness in an aggregate amount, at any one time outstanding on the date such Indebtedness is incurred, such that the sum of (i) secured Indebtedness of the Borrower and its Subsidiaries, and (ii) unsecured Indebtedness of the Borrower and its Subsidiaries (other than (x) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary and (xx) Indebtedness incurred hereunder and under the Revolving Credit Agreement) incurred under this clause (a) does not exceed 10% of Borrower’s Consolidated Net Tangible Assets and (b) Indebtedness under the Note Purchase Agreements and all refinancings, renewals and extensions thereof.”

[END OF TEXT]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

BORROWER:
NRP (OPERATING) LLC,
a Delaware limited liability company
By:   /s/ Dwight L. Dunlap
  Dwight L. Dunlap
  Chief Financial Officer and Treasurer

 

Signature Page to Term Loan Agreement


ADMINISTRATIVE AGENT:
CITIBANK, N.A.,
By   /s/ Authorized Person
 

 

Signature Page to Term Loan Agreement


WELLS FARGO BANK, NATIONAL ASSOCIATION
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


COMPASS BANK
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


BANK OF AMERICA, N.A.
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


COMERICA BANK
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


AMEGY BANK NATIONAL ASSOCIATION
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


BRANCH BANKING AND TRUST COMPANY
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


THE HUNTINGTON NATIONAL BANK
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


UNION BANK, N.A.
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement


HUA NAN COMMERCIAL BANK, LTD., NEW YORK AGENCY
By   /s/ Authorized Person

 

Signature Page to Term Loan Agreement

Exhibit 10.3

FIRST AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “ First Amendment ”) is entered into as of January 23, 2013, by and among NRP (OPERATING) LLC, a Delaware limited liability company (the “ Borrower ”), the banks and other financial institutions listed on the signature pages hereto (together with each other person who becomes a Lender, collectively the “ Lenders ”), and CITIBANK, N.A. , a national banking association, as Administrative Agent for the Lenders.

Preliminary Statement

WHEREAS , pursuant to the Second Amended and Restated Credit Agreement dated as of August 10, 2011 (as amended, restated, supplemented or otherwise modified, the “ Credit Agreement ”), among the Borrower, the Lenders named therein and the Administrative Agent, the Lenders have agreed to make Revolving Loans and issue Letters of Credit to Borrower; and

WHEREAS , the Borrower has now requested that the Lenders modify the Credit Agreement to change certain terms thereof; and

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower and the Required Lenders hereby agree as follows (all capitalized terms used herein and not otherwise defined shall have the meanings as defined in the Credit Agreement):

Section 1. Amendments to Credit Agreement .

(a) The definition of LIBO Rate in Section 1.01 of the Credit Agreement is hereby amended by (i) deleting the phrase “Telerate British Bankers Assoc. Interest Settlement Rates Page” and (ii) inserting in lieu thereof “Reuters Reference Page LIBOR01”.

(b) The definition of Material Indebtedness in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

Material Indebtedness ” means (i) Indebtedness under the Term Loan Agreement, and (ii) Indebtedness (other than the Loans) and obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Material Subsidiaries in an aggregate principal amount exceeding $25,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Material Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Material Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

 

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(c) Section 1.01 of the Credit Agreement is hereby amended by inserting the following new definitions in appropriate alphabetical order:

Purchase Agreement ” means the Purchase Agreement dated as of January 23, 2013, by and among Anadarko Holding Company, Big Island Trona Company, NRP Trona LLC, and the Borrower.

Term Loan Agreement ” means the Term Loan Agreement dated as of January 23, 2013, among the Borrower, the Lenders party thereto, and Citibank, N.A., as Administrative Agent, as amended, amended and restated, supplemented or otherwise modified from time to time.

(d) Section 6.01 of the Credit Agreement is hereby amended by (i) replacing the period at the end of clause (j) with a comma and (ii) inserting the following new clauses following clause (j):

(k) the Contingent Purchase Price Obligation Payment (as defined in Section 2.6 of the Purchase Agreement); and

(l) Indebtedness under the Term Loan Agreement.

(e) Section 6.04 of the Credit Agreement is hereby amended by (i) replacing the period at the end of clause (n) with “; and” and (ii) inserting the following new clause (o) following clause (n):

(o) investments in the Purchased Interests (as defined in the Purchase Agreement).

(f) Section 9.17 of the Credit Agreement is hereby amended by deleting such in its entirety and replacing same with the following:

SECTION 9.17. Release of Guaranty Agreements . Upon simultaneous satisfaction of the following conditions precedent, the Lenders will execute, at Borrower’s expense, a release of all Guaranty Agreements: (a) Borrower achieves an Investment Grade Rating, (b) the representations and warranties set forth in Article III of this Agreement are true and correct; and (c) no Default or Event of Default has occurred and is continuing or would result under this Agreement or the other Loan Documents, as same are amended as set forth in the following sentence. Immediately upon satisfaction of the conditions precedent set forth above, the Agreement shall be deemed amended without further action to delete Section 6.01 in its entirety and replace same with the following:

 

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“SECTION 6.01. I ndebtedness . The Borrower will not, and will not permit any Subsidiary to create, incur, assume or permit to exist any Indebtedness, except, without duplication, (a) Indebtedness in an aggregate amount, at any one time outstanding on the date such Indebtedness is incurred, such that the sum of (i) secured Indebtedness of the Borrower and its Subsidiaries, and (ii) unsecured Indebtedness of the Borrower and its Subsidiaries (other than (x) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary and (xx) Indebtedness incurred hereunder and under the Term Loan Agreement) incurred under this clause (a) does not exceed 10% of Borrower’s Consolidated Net Tangible Assets and (b) Indebtedness under the Note Purchase Agreements and all refinancings, renewals and extensions thereof.”

Section 2. Representations True; No Default . Borrower represents and warrants that:

(a) this First Amendment has been duly authorized, executed and delivered on its behalf; the Credit Agreement, as amended hereby, together with the other Loan Documents to which Borrower is a party, constitute valid and legally binding agreements of Borrower enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;

(b) the representations and warranties of Borrower contained in Article III of the Credit Agreement are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that any such representation or warranty is stated to relate to an earlier date in which case such representation and warranty will be true and correct on and as of such earlier date;

(c) the Borrower has heretofore furnished to the Lenders the Parent’s consolidated balance sheet and statements of income and cash flows (i) as of and for the fiscal year ended 2011, reported on by Ernst & Young L.L.P., independent public accountants, and (ii) as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2012, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Parent and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above; and

(d) after giving effect to this First Amendment, no Default or Event of Default under the Credit Agreement has occurred and is continuing.

Section 3. Expenses, Additional Information . The Borrower shall pay to the Administrative Agent all reasonable expenses incurred in connection with the execution of this First Amendment, including all reasonable expenses incurred in connection with any previous negotiation and loan documentation. The Borrower shall furnish to the Administrative Agent and the Lenders all such other documents, consents and information relating to the Borrower as the Administrative Agent or any Lender may reasonably require to accomplish the purposes hereof.

 

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Section 4. Effectiveness . This First Amendment shall become effective on the first date (the “ First Amendment Closing Date ”) on which each of the following conditions is satisfied:

(a) The Borrower, the Administrative Agent and the Required Lenders shall have executed and delivered to the Administrative Agent a counterpart of this First Amendment;

(b) Each of the representations and warranties made by the Borrower and each Guarantor in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of the First Amendment Closing Date, except to the extent that any such representation or warranty is stated to relate to an earlier date in which case such representation and warranty will be true and correct on and as of such earlier date;

(c) Since December 31, 2011, no event shall have occurred with respect to the Parent, the Borrower and its Subsidiaries, taken as a whole, which, in the reasonable opinion of the Lenders, has had, or could reasonably be expected to have, a Material Adverse Effect; and

(d) The Administrative Agent or any Lender or counsel to the Administrative Agent shall receive such other instruments or documents as they may reasonably request.

The Administrative Agent shall notify the Borrower and the Lenders of the First Amendment Closing Date upon the satisfaction or waiver of all of the foregoing conditions, and such notice will be conclusive and binding.

Section 5. Miscellaneous Provisions .

(a) From and after the First Amendment Closing Date, the Credit Agreement will be deemed to be amended and modified as herein provided, and except as so amended and modified the Credit Agreement will continue in full force and effect.

(b) The Credit Agreement and this First Amendment will be read and construed as one and the same instrument.

(c) Any reference in any of the Loan Documents to the Credit Agreement will be a reference to the Credit Agreement as amended by this First Amendment.

(d) This First Amendment will be construed in accordance with and governed by the laws of the State of New York and of the United States of America.

(e) This First Amendment may be signed in any number of counterparts and by different parties in separate counterparts and may be in original or facsimile form, each of which will be deemed an original but all of which together will constitute one and the same instrument.

 

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(f) The headings herein will be accorded no significance in interpreting this First Amendment.

Section 6. Binding Effect . This First Amendment is binding upon and will inure to the benefit of the Borrower, the Lenders and the Administrative Agent and their respective successors and assigns, except that the Borrower will not have the right to assign its rights hereunder or any interest herein except in accordance with the terms of the Credit Agreement.

Section 7. Final Agreement of the Parties . This First Amendment may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements. There are no unwritten oral agreements between the parties hereto.

[The remainder of this page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties have caused this First Amendment to be executed by their respective duly authorized officers.

 

NRP (OPERATING) LLC
a Delaware limited liability company
By   /s/ Dwight L. Dunlap
Name: Dwight L. Dunlap
Title: Chief Financial Officer

 

Signature Page to First Amendment


ACKNOWLEDGMENT OF GUARANTORS

Each of the undersigned Guarantors hereby confirms that each Loan Document (as the same may be amended or amended and restated, as the case may be, pursuant to and in connection with this First Amendment) to which it is a party or otherwise bound remains in full force and effect and will continue to secure, to the fullest extent possible, the payment and performance of all “Obligations” (in each case as such term is defined in the applicable Loan Document), including without limitation the payment and performance of all such “Obligations” now or hereafter existing under or in respect of the Credit Agreement and the other Loan Documents. The Guarantors specifically reaffirm and extend their obligations under each of their applicable Guaranties to cover all Indebtedness evidenced by the Credit Agreement as same has been created, amended and/or restated by or in connection with this First Amendment. The Guaranties and all the terms thereof shall remain in full force and effect and the Guarantors hereby acknowledge and agree that same are valid and existing and that each of the Guarantors’ obligations thereunder shall not be impaired or limited by the execution or effectiveness of this First Amendment. Each Guarantor hereby represents and warrants that all representations and warranties contained in this First Amendment and the other Loan Documents to which it is a party or otherwise bound are true, correct and complete in all material respects on and as of the First Amendment Closing Date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as of such earlier date. Administrative Agent and the Lenders hereby preserve all of their rights against each Guarantor under its applicable Guaranty and the other Loan Documents to which each applicable Guarantor is a party.

Each Guarantor acknowledges and agrees that (i) notwithstanding the conditions to the effectiveness set forth in this First Amendment, such Guarantor is not required by the terms of the Credit Agreement, this First Amendment or any other Loan Document to consent to the amendments of the Credit Agreement effected pursuant to this First Amendment; and (ii) nothing in the Credit Agreement, this First Amendment or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendments to the Credit Agreement.

 

Signature Page to First Amendment


ACIN LLC

DEEPWATER TRANSPORTATION, LLC

GATLING MINERAL, LLC

HOD LLC

INDEPENDENCE LAND COMPANY, LLC

LITTLE RIVER TRANSPORT LLC

NRP TRONA LLC

RIVERVISTA MINING LLC

SHEPARD BOONE COAL COMPANY LLC

WBRD LLC

WILLIAMSON TRANSPORT, LLC

WPP LLC

(each a Delaware limited liability company)
By:  

NRP (OPERATING) LLC, as sole Member of

each of the above named entities

  By:   /s/ Dwight L. Dunlap
  Name:   Dwight L. Dunlap
  Title:   Chief Financial Officer

 

Signature Page to First Amendment


CITIBANK, N.A.,
a national banking association
By   /s/ Authorized Person

 

Signature Page to First Amendment


WELLS FARGO BANK, NATIONAL ASSOCIATION
By   /s/ Authorized Person

 

Signature Page to First Amendment


BANK OF MONTREAL
By   /s/ Authorized Person

 

Signature Page to First Amendment


BRANCH BANKING AND TRUST COMPANY
By   /s/ Authorized Person

 

Signature Page to First Amendment


THE HUNTINGTON NATIONAL BANK
By   /s/ Authorized Person

 

Signature Page to First Amendment


COMERICA BANK
By   /s/ Authorized Person

 

Signature Page to First Amendment


COMPASS BANK
By   /s/ Authorized Person

 

Signature Page to First Amendment


ROYAL BANK OF CANADA
By   /s/ Authorized Person

 

Signature Page to First Amendment


AMEGY BANK NATIONAL ASSOCIATION
By   /s/ Authorized Person

 

Signature Page to First Amendment