Document:

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                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

                          CONTRIBUTION, CONVEYANCE AND
                              ASSUMPTION AGREEMENT

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                                      INDEX

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<S>                                                                                                         <C>
ARTICLE I DEFINITIONS; SCHEDULES....................................................................         4
   1.1      Definitions.............................................................................         4
   1.2      Schedules and Exhibits..................................................................         7
ARTICLE II TRANSACTIONS.............................................................................         7
   2.1      Contribution by New Gauley to NNG LLC of Assets.........................................         7
   2.2      Contribution by WPP to WPP LLC of Assets................................................         8
   2.3      Contribution by Great Northern to GNP LLC of Assets.....................................         8
   2.4      Contribution by Ark to ACIN LLC of Assets...............................................         8
   2.5      Contribution by New Gauley to the MLP of Interest in NNG LLC............................         9
   2.6      Contribution by WPP to the MLP of Interest in WPP LLC...................................         9
   2.7      Contribution by Great Northern to the MLP of Interest in GNP LLC........................         9
   2.8      Contribution by Ark to the MLP of Interest in ACIN LLC..................................        10
   2.9      Public Cash Contribution................................................................        10
   2.10     Public Cash Contribution to Ark.........................................................        10
   2.11     MLP Receipt of Public Cash..............................................................        10
   2.12     Ark Receipt of Public Cash..............................................................        10
   2.13     NNG LLC Receipt of Offering Proceeds....................................................        10
   2.14     WPP LLC Receipt of Offering Proceeds....................................................        10
   2.15     GNP LLC Receipt of Offering Proceeds....................................................        10
   2.16     Contribution by New Gauley to GP LP of its SPLs.........................................        10
   2.17     Contribution by WPP to GP LP of its SPLs................................................        10
   2.18     Contribution by Great Northern to GP LP of its SPLs.....................................        10
   2.19     Contribution by Ark to GP LP of its SPLs................................................        11
   2.20     Conversion of SPLs......................................................................        11
   2.21     Payment of Transaction Costs, Offering Proceeds and Capital Expenditures................        11
   2.22     Contribution by the MLP to the OLLC of the Membership Interests in the LLCs.............        11
   2.23     Exercise of the Shoe....................................................................        11
   2.24     Specific Conveyances....................................................................        11
ARTICLE III ASSUMPTION OF CERTAIN LIABILITIES.......................................................        12
   3.1      Assumption by the NNG LLC of the New Gauley Debt........................................        12
   3.2      Assumption by the WPP LLC of the WPP Debt...............................................        12
   3.3      Assumption by the GNP LLC of the Great Northern Debt....................................        12
ARTICLE IV TITLE MATTERS............................................................................        12
   4.1      Encumbrances............................................................................        12
   4.2      Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws........................        13
   4.3      General Provision Relating to Assumption Liabilities....................................        14
ARTICLE V FURTHER ASSURANCES........................................................................        15
   5.1      Further Assurances......................................................................        15
   5.2      Power of Attorney.......................................................................        15
ARTICLE VI MISCELLANEOUS............................................................................        16
   6.1      Order of Completion of Transactions.....................................................        16
   6.2      Consents; Restriction on Assignment.....................................................        16
   6.3      Costs...................................................................................        16
   6.4      Ad Valorem Tax Payment..................................................................        17
   6.5      Headings; References; Interpretation....................................................        19
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   6.6      Successors and Assigns..................................................................        19
   6.7      No Third Party Rights...................................................................        19
   6.8      Counterparts............................................................................        19
   6.9      Governing Law...........................................................................        19
   6.10     Severability............................................................................        20
   6.11     Deed; Bill of Sale; Assignment..........................................................        20
   6.12     Amendment or Modification...............................................................        20
   6.13     Integration.............................................................................        20
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                CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

      THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT (this "Agreement")
is made, entered into and effective as of the 17th day of October, 2002, by and
among New Gauley Coal Corporation, a West Virginia corporation ("New Gauley");
Western Pocahontas Properties Limited Partnership, a Delaware limited
partnership ("WPP"); Great Northern Properties Limited Partnership, a Delaware
limited partnership ("Great Northern"); Ark Land Company, a Delaware corporation
("Ark"); NNG LLC, a Delaware limited liability company ("NNG LLC"); WPP LLC, a
Delaware limited liability company ("WPP LLC"); GNP LLC, a Delaware limited
liability company ("GNP LLC"); ACIN LLC, a Delaware limited liability company
("ACIN LLC"); Robertson Coal Management LLC, a Delaware limited liability
company ("RCM LLC"); NRP (Operating) LLC, a Delaware limited liability company
(the "OLLC"); GP Natural Resource Partners LLC, a Delaware limited liability
company ("GP LLC"); NRP (GP) LP, a Delaware limited partnership ("GP LP"); and
Natural Resource Partners L.P., a Delaware limited partnership (the "MLP").

                                    RECITALS

      WHEREAS, GP LLC and GP LP have formed the MLP pursuant to the Delaware
Revised Uniform Limited Partnership Act for the purpose of, among other things,
acquiring, owning and operating certain assets of New Gauley, WPP, Great
Northern and Ark used in the business of owning and managing coal properties;

      WHEREAS, in furtherance of accomplishing the objectives and purposes set
forth in the preceding recital, the following actions have been taken prior to
the date hereof:

      1.    New Gauley has formed NNG LLC to which New Gauley contributed $1,000
            in exchange for all the membership interests in NNG LLC.

      2.    WPP has formed WPP LLC to which WPP contributed $1,000 in exchange
            for all the membership interests in WPP LLC.

      3.    Great Northern has formed GNP LLC to which Great Northern
            contributed $1,000 in exchange for all the membership interests in
            GNP LLC.

      4.    Ark has formed ACIN LLC to which Ark contributed $1,000 in exchange
            for all the membership interest in ACIN LLC.

      5.    Corbin J. Robertson, Jr. ("CR") and Ark have formed GP LLC to which
            CR has contributed $577.50 in exchange for a 57.75% member interest
            and Ark has contributed $422.50 in exchange for a 42.25% member
            interest.

      6.    CR has formed RCM LLC to which CR contributed his 57.75% interest in
            GP LLC in exchange for all the membership interest in RCM LLC.

      7.    New Gauley, WPP, Great Northern, Ark and GP LLC have formed GP LP to
            which New Gauley has contributed $18.40 in exchange for a 1.8399816%
            limited partner interest, WPP has contributed $460.80 in exchange
            for a 46.0795392%

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            limited partner interest, Great Northern has contributed $98.30 in
            exchange for a 9.8299017% limited partner interest, Ark has
            contributed $422.50 in exchange for a 42.2495775% limited partner
            interest and GP LLC has contributed $0.01 in exchange for a 0.001%
            general partner interest.(1)

      8.    GP LP and GP LLC have formed the MLP to which GP LP has contributed
            $20 in exchange for the 2% general partner interest (including 65%
            of the incentive distribution rights of the MLP (the "Incentive
            Distribution Rights")), and GP LLC has contributed $980 in exchange
            for a 98% limited partner interest.(2)

      9.    The MLP has formed the OLLC to which it has contributed $1,000 in
            exchange for all the membership interests in the OLLC.

            WHEREAS, concurrently with the consummation of the transactions
            contemplated hereby, each of the following shall occur:

      10.   New Gauley will contribute certain assets to NNG LLC as a capital
            contribution and in exchange for membership interests and an
            assumption of certain debt related to the assets.

      11.   WPP will contribute certain assets to WPP LLC as a capital
            contribution and in exchange for membership interests and an
            assumption of certain debt related to the assets.

      12.   Great Northern will contribute certain assets to GNP LLC as a
            capital contribution and in exchange for membership interests and an
            assumption of certain debt related to the assets.

      13.   Ark will contribute assets to ACIN LLC as a capital contribution and
            in exchange for membership interests.

      14.   New Gauley will contribute its membership interests in NNG LLC to
            the MLP in exchange for (a) a 0.0368% special limited partner
            interest ("SPL"), (b) 116,957 common units representing common
            limited partner interests ("Common Units"), constituting a 0.5%
            interest in the MLP, (c) 208,907 subordinated units, representing
            subordinated limited partner interests of the MLP ("Subordinated
            Units"), constituting a 0.9% interest in the MLP and (d) 0.8% of the
            Incentive Distribution Rights.

      15.   WPP will contribute its interest in WPP LLC to the MLP in exchange
            for (a) a 0.9216% SPL, (b) 3,158,166 Common Units, constituting a
            13.7% interest in the MLP, (c) 5,231,766 Subordinated Units,
            constituting a 22.7% interest in the MLP, (d) 19.94% of the
            Incentive Distribution Rights and (e) the right to receive $11,520
            as reimbursement for certain capital expenditures.

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(1)   Ark has an aggregate 42.25% interest in GP LP based on its 42.2495775%
      limited partner interest and its 0.0004225% general partner interest.

(2)   At closing, the limited partner interest acquired by GP LLC is redeemed by
      the MLP for $980.

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      16.   Great Northern will contribute its interest in GNP LLC to the MLP in
            exchange for (a) a 0.1966% SPL, (b) 607,362 Common Units,
            constituting a 2.6% interest in the MLP, (c) 1,116,065 Subordinated
            Units, constituting a 4.8% interest in the MLP and (d) 4.26% of the
            Incentive Distribution Rights.

      17.   Ark will contribute its interest in ACIN LLC to the MLP in exchange
            for (a) a 0.8450% SPL, (b) 4,796,920 Common Units, constituting a
            20.8% interest in the MLP, (c) 4,796,920 Subordinated Units,
            constituting a 20.8% interest in the MLP and (d) 10% of the
            Incentive Distribution Rights.

      18.   The public, through the Underwriters, will contribute $51,975,000
            ($48,401,718.75 net of the Underwriters' 6.5% spread and the Lehman
            structuring fee) to the MLP in exchange for 2,598,750 Common Units,
            constituting a 11.2% interest in the MLP.

      19.   The public, through the Underwriters, will pay $38,025,000
            ($35,410.781.25 net of the Underwriters' 6.5% spread and the Lehman
            structuring fee) to Ark in exchange for 1,901,250 Common Units,
            constituting a 8.2% interest in the MLP.

      20.   New Gauley will contribute its SPLs to GP LP as capital contribution
            to continue its interest in GP LP.

      21.   WPP will contribute its SPLs to GP LP as capital contribution to
            continue its interest in GP LP.

      22.   Great Northern will contribute its SPLs to GP LP as capital
            contribution to continue its interest in GP LP.

      23.   Ark will contribute its SPLs to GP LP as capital contribution to
            continue its interest in GP LP.

      24.   The SPLs held by GP LP will be converted to an additional general
            partner capital interest in the MLP.

      25.   The MLP (a) will pay the transaction expenses,(3) estimated to be
            $5,000,000, (b) will contribute some of the remaining cash to NNG
            LLC ($1,609,066), WPP LLC ($36,000,000) and GNP LLC ($7,511,039)
            which, in turn will use the funds to retire all or a portion of
            their debt ($1,609,066 $36,000,000 and $7,511,039, respectively),
            (c) will distribute $11,520 to WPP to reimburse it for certain
            capital expenditures and (d) will retain $1,000,000 for working
            capital.

      26.   The MLP will contribute its interests in NNG LLC, WPP LLC, GNP LLC,
            and ACIN LLC to the OLLC as a capital contribution.

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(3)   The MLP will reimburse the parties for any payments of transaction
      expenses; ACIN LLC will pay 42.25% or reimburse the MLP for 42.25% of the
      transaction expenses including retained working capital (which share is
      estimated to be $2,535,000).

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      27.   If the over-allotment option (the "Shoe") is exercised in full,
            57.75% of the net proceeds ($7,289,494) will be contributed to the
            MLP which, in turn, will contribute a portion ($1,411,898) to the
            OLLC which, in turn, will contribute a portion to GNP LLC
            ($1,411,898) which will use the funds to retire the debt; the
            balance of the proceeds ($5,877,597) will be used by the MLP to
            redeem 311,040 of the Common Units held by WPP and 3,270 of the
            Common Units held by New Gauley at a price of $18.70 per unit ($20
            less the Underwriters' spread) in reimbursement of certain capital
            expenditures. To the extent the Shoe is not exercised, Great
            Northern and New Gauley will purchase up to 66,353 and 9,150 of the
            Common Units, respectively, with the proceeds being used, as
            described above, to retire debt of GNP LLC.(4) The balance (42.25%)
            of the net proceeds will be paid to Ark in exchange for its share
            (42.25%) of the Common Units sold pursuant to the exercise of the
            Shoe.

      NOW, THEREFORE, in consideration of their mutual undertakings and
agreements hereunder, the parties to this Agreement undertake and agree as
follows:

                                   ARTICLE I
                             DEFINITIONS; SCHEDULES

      1.1   Definitions. The following capitalized terms have the meanings given
            below.

            "ACIN LLC" has the meaning assigned to such term in the opening
            paragraph.

            "Agreement" has the meaning assigned to such term in the opening
            paragraph.

            "Ark" has the meaning assigned to such term in the opening
            paragraph.

            "Ark Assets" has the meaning assigned to such term in Section 2.4.

            "Ark Operators" has the meaning assigned to such term in Section
            6.4(a).

            "Ark Reservations" has the meaning assigned to such term in Section
            2.4.

            "Ark Reservations Taxes" has the meaning assigned to such term in
            Section 6.4(a).

            "Ark Taxes" has the meaning assigned to such term in Section 6.4(a).

            "Attorney-in-Fact" has the meaning assigned to such term in Section
            5.2.

            "Beneficial Owner" has the meaning assigned to such term in Section
            6.2.

            "Common Units" has the meaning assigned to such term in Recital 14.

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(4)   If the Shoe is not exercised, there will be $98,154 additional working
      capital equal in the MLP to the spread on the units bought by Great
      Northern (66,353) and New Gauley (9,150) as they will pay the same price
      as the public and no spread will be paid on them.

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            "Contributing Parties" has the meaning assigned to such term in
            Section 5.2.

            "Conveyed Assets" has the meaning assigned to such term in Section
            5.2.

            "Conveying Documents" has the meaning assigned to such term in
            Section 4.1(b).

            "CR" has the meaning assigned to such term in Recital 5.

            "Effective Date" means October 17, 2002.

            "Effective Time" means 12:01 a.m. Eastern Standard Time on the
            Effective Date.

            "GNP LLC" has the meaning assigned to such term in the opening
            paragraph.

            "GP LLC" has the meaning assigned to such term in the opening
            paragraph.

            "GP LP" has the meaning assigned to such term in the opening
            paragraph.

            "Great Northern" has the meaning assigned to such term in the
            opening paragraph.

            "Great Northern Assets" has the meaning assigned to such term in
            Section 2.3.

            "Great Northern Debt" has the meaning assigned to such term in
            Section 2.3.

            "Great Northern Operators" has the meaning assigned to such term in
            Section 6.4(d).

            "Great Northern Reservations" has the meaning assigned to such term
            in Section 2.3.

            "Great Northern Reservations Taxes" has the meaning assigned to such
            term in Section 6.4(d).

            "Great Northern Taxes" has the meaning assigned to such term in
            Section 6.4(d).

            "Incentive Distribution Rights" has the meaning assigned to such
            term in Recital 8.

            "Initial Offering" has the meaning assigned to such term in the
            Partnership Agreement.

            "Laws" means any and all laws, statutes, ordinances, rules or
            regulations promulgated by a governmental authority, orders of a
            governmental authority, judicial decisions, decisions of arbitrators
            or determinations of any governmental authority or court.

            "MLP" has the meaning assigned to such term in the opening
            paragraph.

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            "New Gauley" has the meaning assigned to such term in the opening
            paragraph.

            "New Gauley Assets" has the meaning assigned to such term in Section
            2.1.

            "New Gauley Debt" has the meaning assigned to such term in Section
            2.1.

            "New Gauley Operators" has the meaning assigned to such term in
            Section 6.4(c).

            "New Gauley Reservations" has the meaning assigned to such term in
            Section 2.1.

            "New Gauley Reservations Taxes" has the meaning assigned to such
            term in Section 6.4(c).

            "New Gauley Taxes" has the meaning assigned to such term in Section
            6.4(c).

            "NNG" has the meaning assigned to such term in the opening
            paragraph.

            "Offering Costs" has the meaning assigned to such term in Section
            2.21.

            "Offering Proceeds" has the meaning assigned to such term in Section
            2.11.

            "OLLC" has the meaning assigned to such term in the opening
            paragraph.

            "Omnibus Agreement" has the meaning assigned to such term in the
            Partnership Agreement.

            "Partnership Agreement" means the Agreement of Limited Partnership
            of the MLP, as it may be amended and restated from time to time.

            "RCM LLC" has the meaning assigned to such term in the opening
            paragraph.

            "Restriction" has the meaning assigned to such term in Section 6.2.

            "Restriction Asset" has the meaning assigned to such term in Section
            6.2.

            "Shoe" has the meaning assigned to such term in Recital 27.

            "Specific Conveyances" has the meaning assigned to such term in
            Section 2.24.

            "SPL" has the meaning assigned to such term in Recital 14.

            "Subordinated Units" has the meaning assigned to such term in
            Recital 14.

            "Underwriters" has the meaning assigned to such term in the
            Partnership Agreement.

            "WPP" has the meaning assigned to such term in the opening
            paragraph.

            "WPP Assets" has the meaning assigned to such term in Section 2.2.

                                       6
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            "WPP Debt" has the meaning assigned to such term in Section 2.2.

            "WPP LLC" has the meaning assigned to such term in the opening
            paragraph.

            "WPP Operators" has the meaning assigned to such term in Section
            6.4(b).

            "WPP Reservations" has the meaning assigned to such term in Section
            2.2.

            "WPP Reservations Taxes" has the meaning assigned to such term in
            Section 6.4(b).

            "WPP Taxes" has the meaning assigned to such term in Section 6.4(b).

      1.2 Schedules and Exhibits. The following schedules and exhibits are
attached hereto:

            Schedule 2.1 - New Gauley Assets

            Schedule 2.2 - WPP Assets

            Schedule 2.3 - Great Northern Assets

            Schedule 2.4 - Ark Assets

                                   ARTICLE II
                                  TRANSACTIONS

      2.1 Contribution by New Gauley to NNG LLC of Assets. New Gauley hereby
contributes, transfers and assigns to NNG LLC, its successors and assigns, for
its and their own use forever, all right, title and interest of New Gauley in
and to all the assets described on Schedule 2.1 (the "New Gauley Assets") and
NNG LLC hereby accepts the New Gauley Assets, as a capital contribution and in
exchange for an assumption of $1,609,066 in debt related to the New Gauley
Assets (the "New Gauley Debt"); provided, however, that subject to the rights of
NNG LLC, its successors and assigns, to use or consume the same in connection
with its coal mining operations, New Gauley reserves, for itself and its
successors and assigns, all of its interest in timber and the surface estate of
the assets described on Schedule 2.1 and such reserved interests are not
included in the New Gauley Assets. New Gauley is not contributing, transferring
and assigning to NNG LLC, its successors and assigns, oil and gas (except that
New Gauley is contributing, transferring and assigning to NNG LLC, its
successors and assigns, any and all right, title and interest of New Gauley in
and to the oil and gas estate located in Nicholas and Greenbrier County, West
Virginia with respect to the New Gauley Assets due to these interests being the
subject of outleases to third parties) such interests are not included in the
New Gauley Assets. The interests and estates being retained by New Gauley as set
forth in this paragraph are herein called the "New Gauley Reservations".

      TO HAVE AND TO HOLD the New Gauley Assets unto NNG LLC, its successors and
assigns, together with all and singular the rights and appurtenances thereto in

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anywise belonging, subject, however, to the terms and conditions stated in this
Agreement, and in such instruments of conveyance forever.

      2.2 Contribution by WPP to WPP LLC of Assets. WPP hereby contributes,
transfers and assigns to WPP LLC, its successor and assigns, for its and their
use forever, all right, title and interest of WPP in and to all the assets
described on Schedule 2.2 ("WPP Assets") and WPP LLC hereby accepts the WPP
Assets as a capital contribution and in exchange for an assumption of
$36,000,000 in debt related to the WPP Assets (the "WPP Debt"); provided,
however, that subject to the rights of WPP LLC, its successors and assigns to
use or consume the same in connection with its coal mining operations, WPP
reserves, for itself and its successors and assigns, all of its interest in
timber and the surface estate, less and excepting one surface estate located in
Raleigh County, West Virginia, of the assets described on Schedule 2.2 and such
reserved interests are not included in the WPP Assets. WPP is not contributing,
transferring and assigning to WPP LLC, its successors and assigns, oil and gas
due to these interests being previously severed and such interests are not
included in the WPP Assets. The interests and estates being retained by WPP as
set forth in this paragraph are herein called the "WPP Reservations".

            TO HAVE AND TO HOLD the WPP Assets unto WPP LLC, its successors and
assigns, together with all and singular the rights and appurtenances thereto in
anywise belonging, subject, however, to the terms and conditions stated in this
Agreement, and in such instruments of conveyance forever.

      2.3 Contribution by Great Northern to GNP LLC of Assets. Great Northern
hereby contributes, transfers and assigns to GNP LLC, its successor and assigns,
for its and their use forever, all right, title and interest of Great Northern
in and to all the assets described on Schedule 2.3 (the "Great Northern Assets")
and GNP LLC hereby accepts the Great Northern Assets as a capital contribution
and in exchange for an assumption of $8,922,937 in debt related to the Great
Northern Assets (the "Great Northern Debt"); provided, however, that subject to
the rights of GNP LLC, its successors and assigns, to use or consume the same in
connection with its coal mining operations, Great Northern is not contributing,
transferring and assigning to GNP LLC, its successors and assigns, any coal bed
methane and oil and gas due to these interests being previously severed and such
interests are not included in the assets described on Schedule 2.3 and such
interests are not included in the Great Northern Assets. The interests and
estates being retained by Great Northern as set forth in this paragraph are
herein called the "Great Northern Reservations".

            TO HAVE AND TO HOLD the Great Northern Assets unto GNP LLC, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, and in such instruments of conveyance
forever.

      2.4 Contribution by Ark to ACIN LLC of Assets. Ark hereby contributes,
transfers and assigns to ACIN LLC, its successor and assigns, for its and their
use forever, all right, title and interest of Ark in and to all the assets
described on Schedule 2.4 ("Ark Assets") and ACIN LLC hereby accepts the Ark
Assets as a capital contribution; provided, however, that subject to the rights
of ACIN LLC, its successors and assigns, to use or consume the same in
connection

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with its coal mining operations, Ark reserves, for itself and its successors and
assigns, (a) the oil and gas estate, and the coal bed methane estate to the
extent, if any, it is not otherwise included in the oil and gas estate,
contained within those properties(5) described on Schedule 2.4 that are located
in Harlan and Letcher Counties, Kentucky, and Wise County, Virginia and that are
subject to oil and gas leases to Columbia Natural Resources, Inc., (b) a royalty
interest with respect to the oil and gas estates of the assets described on
Schedule 2.4 other than those assets included in clause (a) above, but only
those assets that as of the date hereof are not subject to an oil and gas lease
with any third party, such royalty interest being equal to eighty percent of
whatever royalties may from time to time be reserved by ACIN LLC, its successors
and assigns, with respect to such oil and gas (and, for greater clarity, there
is no such reservation under this clause (b) with respect to assets of which the
oil and gas estates are currently leased to third parties), and (c) a royalty
interest in the coal bed methane estate of the assets described on Schedule 2.4
(but excluding those assets covered by clause (a) above and without duplication
of the royalty interest reserved in clause (b) above to the extent, if any, coal
bed methane is included in the oil and gas estate), such royalty interest being
equal to eighty percent of whatever royalties may from time to time be reserved
by ACIN LLC, its successors and assigns, with respect to such coal bed methane;
and such reserved interests referenced in clauses (a), (b), and (c) above are
not included in the Ark Assets. The interests and estates being retained by Ark
as set forth in this paragraph are herein called the "Ark Reservations".

            TO HAVE AND TO HOLD the Ark Assets unto ACIN LLC, its successors and
assigns, together with all and singular the rights and appurtenances thereto in
anywise belonging, subject, however, to the terms and conditions stated in this
Agreement, and in such instruments of conveyance forever.

      2.5 Contribution by New Gauley to the MLP of Interest in NNG LLC. New
Gauley hereby grants, contributes, transfers, assigns and conveys to the MLP,
all of its membership interests in NNG LLC in exchange for (a) a 0.0368% SPL,
(b) 116,957 Common Units, constituting a 0.5% interest in the MLP, (c) 208,907
Subordinated Units, constituting a 0.9% interest in the MLP and (d) 0.8% of the
Incentive Distribution Rights.

      2.6 Contribution by WPP to the MLP of Interest in WPP LLC. WPP hereby
grants, contributes, transfers, assigns and conveys to the MLP all of its
membership interests in WPP LLC in exchange for (a) a 0.9216% SPL, (b) 3,158,166
Common Units, constituting a 13.7% interest in the MLP, (c) 5,231,766
Subordinated Units, constituting a 22.7% interest in the MLP, (d) 19.94% of the
Incentive Distribution Rights and (d) the right to receive $11,520 as
reimbursement for certain capital contributions.

      2.7 Contribution by Great Northern to the MLP of Interest in GNP LLC.
Great Northern hereby grants, contributes, transfers, assigns and conveys to the
MLP all of its membership interests in GNP LLC in exchange for (a) a 0.1966%
SPL, (b) 607,362 Common Units, constituting a 2.6% interest in the MLP, (c)
1,116,065 Subordinated Units, constituting a 4.8% interest in the MLP and (d)
4.26% of the Incentive Distribution Rights.

----------
(5)   These properties contain an oil and gas lease to Columbia Natural
      Resources, Inc. This lease does not include the coal bed methane estate,
      but grants Columbia a right of first option as to any lease of the coal
      bed methane estate.

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      2.8 Contribution by Ark to the MLP of Interest in ACIN LLC. Ark hereby
grants, contributes, transfers, assigns and conveys to the MLP all of its
membership interest in ACIN LLC in exchange for (a) a 0.8450% SPL, (b) 4,796,920
Common Units, constituting a 20.8% interest in the MLP, (c) 4,796,920
Subordinated Units, constituting a 20.8% interest in the MLP and (d) 10% of the
Incentive Distribution Rights.

      2.9 Public Cash Contribution. The parties to this Agreement acknowledge a
cash contribution of $48,401,718.75 (being a gross contribution of $51,975,000
reduced by the Underwriters' 6.5% spread and the Lehman structuring fee) from
the public to the MLP in exchange for 2,598,750 Common Units, representing a
11.2% limited partner interest in the MLP.

      2.10 Public Cash Contribution to Ark. The parties to this Agreement
acknowledge a cash contribution of $35,553,375 (being a gross contribution of
$38,410,781.25 reduced by the Underwriters' 6.5% spread and the Lehman
structuring fee) from the public to Ark in exchange for 1,901,250 Common Units,
representing a 8.2% interest in the MLP.

      2.11 MLP Receipt of Public Cash. The MLP acknowledges receipt of
$48,401,718.75 in cash obtained from the Initial Offering (the "Offering
Proceeds") as a capital contribution to the MLP.

      2.12 Ark Receipt of Public Cash. Ark acknowledges receipt of
$35,410,781.25 in cash obtained from the Initial Offering in exchange for
1,901,250 Common Units, representing a 7.8% limited partner interest in the MLP.

      2.13 NNG LLC Receipt of Offering Proceeds. NNG LLC acknowledges receipt of
$1,635,000 in cash obtained from the MLP.

      2.14 WPP LLC Receipt of Offering Proceeds. WPP LLC acknowledges receipt of
$36,000,000 in cash obtained from the MLP.

      2.15 GNP LLC Receipt of Offering Proceeds. GNP LLC acknowledges receipt of
$7,485,105 in cash obtained from the MLP.

      2.16 Contribution by New Gauley to GP LP of its SPLs. New Gauley hereby
grants, contributes, transfers, assigns and conveys to GP LP, as a capital
contribution, its SPLs to continue its interest in GP LP, and GP LP hereby
accepts the same.

      2.17 Contribution by WPP to GP LP of its SPLs. WPP hereby contributes,
transfers and assigns to GP LP, as a capital contribution, its SPLs to continue
its interest in GP LP, and GP LP hereby accepts the same.

      2.18 Contribution by Great Northern to GP LP of its SPLs. Great Northern
herby contributes, transfers and assigns to GP LP, as a capital contribution,
its SPLs to continue its interest in GP LP, and GP LP hereby accepts the same.

                                       10
<PAGE>

      2.19 Contribution by Ark to GP LP of its SPLs. Ark hereby contributes,
transfers and assigns to GP LP, as a capital contribution, its SPLs to continue
its interest in GP LP, and GP LP hereby accepts the same.

      2.20 Conversion of SPLs. The parties acknowledge that the SPLs held by GP
LP will be converted to an additional general partner interest in the MLP.

      2.21 Payment of Transaction Costs, Offering Proceeds and Capital
Expenditures. The parties to this Agreement acknowledge that the MLP has used
all of such capital contribution (a) to pay transaction costs accrued in
connection with the Initial Offering, including without limitation the
Underwriters' 6.5% spread and the Lehman structuring fee, that are due and
payable or that have previously been paid (collectively, the "Offering Costs")
and (b) to pay the balance of the Offering Proceeds to the NNG LLC ($1,609,066),
WPP LLC ($36,000,000) and GNP LLC ($7,511,039) as a capital contribution in each
of NNG LLC, WPP LLC and GNP LLC which, in turn will use the funds to retire a
portion of their debt ($1,609,066, $36,000,000 and $7,511,039, respectively) and
(c) to distribute $11,520 to WPP as reimbursement for certain capital
expenditures.

      2.22 Contribution by the MLP to the OLLC of the Membership Interests in
the LLCs. The MLP hereby contributes, transfers and assigns to the OLLC, as a
capital contribution, the MLP's interests in NNG LLC, WPP LLC, GNP LLC and ACIN
LLC, respectively.

      2.23 Exercise of the Shoe. The parties to this Agreement hereby
acknowledge that (x) in the event the Underwriters exercise their over allotment
option pursuant to Section 2 of the Underwriting Agreement, the MLP shall
contribute a portion ($1,411,898) of the net proceeds from the exercise of the
Shoe to the OLLC as a capital contribution which shall, in turn, contribute that
portion to GNP LLC ($1,411,898), which shall be used to retire the debt; the
balance of the net proceeds from the exercise of the Shoe ($5,877,597) shall be
used by the MLP to redeem 311,040 of the Common Units held by WPP and 3,270 of
the Common Units held by New Gauley at a price of $18.70 per unit for
reimbursement of capital expenditures and (y) to the extent the Shoe is not
exercised, Great Northern and New Gauley will purchase up to 66,353 and 9,150
Common Units, respectively, and the net proceeds will be used as described
above, to retire debt of Great Northern LLC. The balance (42.25%) of the net
proceeds will be paid to Ark in exchange for its share (42.25%) of the Common
Units sold to Ark pursuant to the exercise of the Shoe.

      2.24 Specific Conveyances. To further evidence the asset contributions set
forth in Sections 2.1, 2.2, 2.3 and 2.4 above, each party making such
contribution may have executed and delivered to the party receiving such
contribution certain conveyance, assignment and bill of sale instruments (the
"Specific Conveyances"). The Specific Conveyances shall evidence and perfect
such sale and contribution made by this Agreement and shall not constitute a
second conveyance of any assets or interests therein and shall control over any
contrary terms of this Agreement.

                                       11
<PAGE>

                                  ARTICLE III
                        ASSUMPTION OF CERTAIN LIABILITIES

      3.1 Assumption by the NNG LLC of the New Gauley Debt. In connection with
the capital contribution by New Gauley to NNG LLC, as set forth in Section 2.1
above, NNG LLC hereby assumes and agrees to duly and timely pay, perform and
discharge the New Gauley Debt, to the full extent that New Gauley has been
heretofore or would have been in the future obligated to pay, perform and
discharge the New Gauley Debt were it not for such execution and delivery of
this Agreement; provided however that said assumption and agreement to duly and
timely pay, perform and discharge the New Gauley Debt shall not (i) increase the
obligation of NNG LLC with respect to the New Gauley Debt beyond that of New
Gauley, (ii) waive any valid defense that was available to New Gauley with
respect to the New Gauley Debt or (iii) enlarge any rights or remedies of any
third party with respect to the New Gauley Debt.

      3.2 Assumption by the WPP LLC of the WPP Debt. In connection with the
capital contribution by WPP to WPP LLC, as set forth in Section 2.2 above, WPP
LLC hereby assumes and agrees to duly and timely pay, perform and discharge the
WPP Debt, to the full extent that WPP has been heretofore or would have been in
the future obligated to pay, perform and discharge the WPP Debt were it not for
such contribution and the execution and delivery of this Agreement; provided
however that said assumption and agreement to duly and timely pay, perform and
discharge the WPP Debt shall not (i) increase the obligation of the WPP LLC with
respect to the WPP Debt beyond that of WPP, (ii) waive any valid defense that
was available to WPP with respect to the WPP Debt or (iii) enlarge any rights or
remedies of any third party with respect to the WPP Debt.

      3.3 Assumption by the GNP LLC of the Great Northern Debt. In connection
with the capital contribution by Great Northern to GNP LLC, as set forth in
Section 2.3 above, GNP LLC hereby assumes and agrees to duly and timely pay,
perform and discharge the Great Northern Debt, to the full extent that Great
Northern has been heretofore or would have been in the future obligated to pay,
perform and discharge the Great Northern Debt were it not for such contribution
and the execution and delivery of this Agreement; provided however that said
assumption and agreement to duly and timely pay, perform and discharge the Great
Northern Debt shall not (i) increase the obligation of the MLP with respect to
the Great Northern Debt beyond that of Great Northern, (ii) waive any valid
defense that was available to Great Northern with respect to the Great Northern
Debt or (iii) enlarge any rights or remedies of any third party with respect to
the Great Northern Debt.

                                   ARTICLE IV
                                  TITLE MATTERS

      4.1 Encumbrances.

            (a) Except to the extent provided in Article II or any other
document executed in connection with this Agreement or the Initial Offering
including, without limitation, the Omnibus Agreement, the contribution and
conveyance of the various Conveyed Assets (as defined below) as reflected in
this Agreement are made expressly subject to (i) all recorded and specifically
identified unrecorded liens, encumbrances, agreements, defects, restrictions,
adverse

                                       12
<PAGE>

claim and all laws, rules, regulations, ordinances, judgments and orders of
governmental authorities or tribunals having or asserting jurisdiction over the
Conveyed Assets and operations conducted thereon or therewith, in each case to
the extent the same are valid and enforceable and affect the Conveyed Assets
(provided, however, that each grantor of any of the Conveyed Assets warrants and
represents to the respective grantee of the Conveyed Assets that such grantor's
Conveyed Assets are not encumbered by (x) any mortgages, deeds of trust,
security interests, or other contractual liens, in each case by, through, or
under such grantor (including matters knowingly assumed or taken subject to by
such grantor), but not otherwise, except for such matters as are specifically
identified in the Omnibus Agreement, this Agreement or the Conveying Documents
or (y) any liens with respect to which the secured debt is past due, (ii) all
matters that a current on the ground survey or visual inspection of the Conveyed
Assets would reflect, (iii) the applicable liabilities assumed in Article III,
and (iv) all matters contained in the applicable provisions of Article II.

            (b) To the extent that the parties have executed, or hereafter do
execute, deeds, bills of sale, or other conveyance documents ("Conveying
Documents"), then the provisions set forth in Section 4.1(a) immediately above
shall also be applicable to the conveyances under the Conveying Documents.

      4.2 Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

            (A) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE INITIAL OFFERING INCLUDING,
WITHOUT LIMITATION THE OMNIBUS AGREEMENT, THE PARTIES TO THIS AGREEMENT
ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES TO THIS AGREEMENT HAS MADE, DOES
NOT MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS, OR GUARANTIES OF
ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED, OR STATUTORY, ORAL
OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY, OR
CONDITION OF ANY ASSET, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY,
OR ENVIRONMENTAL CONDITION OF ANY ASSET GENERALLY, INCLUDING THE PRESENCE OR
LACK OF HAZARDOUS SUBSTANCES OR OTHER MATTERS ON THE CONVEYED ASSETS, (B) THE
INCOME TO BE DERIVED FROM THE CONVEYED ASSETS, (C) THE SUITABILITY OF THE
CONVEYED ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED
THEREON, (D) THE COMPLIANCE OF OR BY THE CONVEYED ASSETS OR THEIR OPERATION WITH
ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL PROTECTION,
POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E)
THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF THE CONVEYED ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY
OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
INITIAL OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, THE
PARTIES TO THIS AGREEMENT ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE
OPPORTUNITY TO INSPECT THE RESPECTIVE CONVEYED ASSETS, AND EACH IS RELYING
SOLELY ON ITS OWN INVESTIGATION OF THE RESPECTIVE CONVEYED ASSETS AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE PARTIES TO THIS AGREEMENT.
EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT OR THE INITIAL OFFERING INCLUDING, WITHOUT

                                       13
<PAGE>

LIMITATION, THE OMNIBUS AGREEMENT, NONE OF THE PARTIES TO THIS AGREEMENT IS
LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO THE CONVEYED ASSETS FURNISHED BY
ANY AGENT, EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE EXTENT PROVIDED IN
ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR
THE INITIAL OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, EACH
OF THE PARTIES TO THIS AGREEMENT ACKNOWLEDGE THAT TO THE MAXIMUM EXTENT
PERMITTED BY LAW, THE CONTRIBUTION OF THE CONVEYED ASSETS AS PROVIDED FOR HEREIN
IS MADE IN AN "AS IS", "WHERE IS" CONDITION WITH ALL FAULTS, AND THE CONVEYED
ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO ALL OF THE MATTERS CONTAINED IN
THIS SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND CONVEYANCE OR THE
TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN
NEGOTIATED BY THE PARTIES TO THIS AGREEMENT AFTER DUE CONSIDERATION AND ARE
INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR
WARRANTIES, WHETHER EXPRESS, IMPLIED, OR STATUTORY, WITH RESPECT TO THE CONVEYED
ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR
OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED
OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE INITIAL OFFERING,
INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT.

            (b) To the extent that certain jurisdictions in which the Conveyed
Assets are located may require that documents be recorded in order to evidence
the transfers of title reflected in this Agreement, then the disclaimers set
forth in Section 4.2(a) immediately above shall also be applicable to the
conveyances under such documents, except as otherwise provided in such document.

            (c) The contributions of the Conveyed Assets made under this
Agreement are made with full rights of substitution and subrogation of the
respective parties receiving such contributions, and all persons claiming by,
through and under such parties, to the extent assignable, in and to all
covenants and warranties by the predecessors-in-title of the parties
contributing the Conveyed Assets, and with full subrogation of all rights
accruing under applicable statutes of limitation and all rights of action of
warranty against all former owners of the Conveyed Assets.

            (d) Each of the parties to this Agreement agrees that the
disclaimers contained in this Section 4.2 are "conspicuous" disclaimers. Any
covenants implied by statute or law by the use of the words "grant," "convey,"
"bargain," "sell," "assign," "transfer," "deliver," or "set over" or any of them
or any other words used in this Agreement or any exhibits hereto are hereby
expressly disclaimed, waived or negated.

            (e) Each of the parties to this Agreement hereby waives compliance
with any applicable bulk sales law or any similar law in any applicable
jurisdiction in respect of the transactions contemplated by this Agreement.

      4.3 General Provision Relating to Assumption Liabilities. Notwithstanding
the terms and conditions of the Conveying Documents, each grantor of the
Conveyed Assets shall remain responsible for all liabilities and obligations
related thereto arising prior to the date hereof, and

                                       14
<PAGE>

each grantee of the Conveyed Assets shall assume responsibility for liabilities
and obligations related thereto first arising on and after the date hereof,
under or in connection with any and all covenants, leases, or agreements of
record, or any assumed coal leases, affecting the respective Conveyed Assets.

                                   ARTICLE V
                               FURTHER ASSURANCES

      5.1 Further Assurances. From time to time after the date hereof, and
without any further consideration, the parties to this Agreement agree to
execute, acknowledge and deliver all such additional deeds, assignments, bills
of sale, conveyances, instruments, notices, releases, acquittances and other
documents, and will do all such other acts and things, all in accordance with
applicable law, as may be necessary or appropriate (i) more fully to assure that
the applicable parties to this Agreement own all of the properties, rights,
titles, interests, estates, remedies, powers and privileges granted by this
Agreement, or which are intended to be so granted, (ii) more fully and
effectively to vest in the applicable parties to this Agreement and their
respective successors and assigns beneficial and record title to the interests
contributed and assigned by this Agreement or intended so to be and (iii) more
fully and effectively to carry out the purposes and intent of this Agreement.

      5.2 Power of Attorney. Each party (collectively, the "Contributing
Parties") that has conveyed assets (collectively, the "Conveyed Assets") as
reflected by this Agreement hereby constitutes and appoints GP LP (the
"Attorney-in-Fact"), its true and lawful attorney-in-fact with full power of
substitution for it and in its name, place and stead or otherwise on behalf of
the applicable Contributing Party and its successors and assigns, and for the
benefit of the Attorney-in-Fact to demand and receive from time to time the
Conveyed Assets contributed and to execute in the name of the applicable
Contributing Party and its successors and assigns instruments of conveyance,
instruments of further assurance and to give receipts and releases in respect of
the same, and from time to time to institute and prosecute in the name of the
applicable Contributing Party for the benefit of the Attorney-in-Fact, any and
all proceedings at law, in equity or otherwise which the Attorney-in-Fact may
deem proper in order to (i) collect, assert or enforce any claims, rights or
titles of any kind in and to the Conveyed Assets, (ii) defend and compromise any
and all actions, suits or proceedings in respect of any of the Conveyed Assets,
and (iii) do any and all such acts and things in furtherance of this Agreement
as the Attorney-in-Fact shall deem advisable. Each Contributing Party hereby
declares that the appointment hereby made and the powers hereby granted are
coupled with an interest and are and shall be irrevocable and perpetual and
shall not be terminated by any act of any Contributing Party or its successors
or assigns or by operation of law.

                                       15
<PAGE>

                                   ARTICLE VI
                                  MISCELLANEOUS

      6.1 Order of Completion of Transactions. The transactions provided for in
Articles II (except as otherwise noted) and III of this Agreement shall be
completed on the Effective Date in the following order:

            First, the transactions provided for in Article II shall be
completed in the order set forth therein; and

            Second, the transactions provided for in Article III shall be
completed in the order set forth therein.

      6.2 Consents; Restriction on Assignment. If there are prohibitions against
or conditions to the contribution and conveyance of one or more of the Conveyed
Assets without the prior written consent of third parties, including, without
limitation, governmental agencies (other than consents of a ministerial nature
which are normally granted in the ordinary course of business), which if not
satisfied would result in a material breach of such prohibitions or conditions
or would give an outside party the right to terminate rights of the party to
whom the applicable assets were intended to be conveyed (the "Beneficial Owner")
with respect to such portion of the Conveyed Assets (herein called a
"Restriction"), then any provision contained in this Agreement to the contrary
notwithstanding, the transfer of title to or interest in each such portion of
the Conveyed Assets (herein called the "Restriction Asset") pursuant to this
Agreement shall not become effective unless and until such Restriction is
satisfied, waived or no longer applies. When and if such a Restriction is so
satisfied, waived or no longer applies, to the extent permitted by applicable
law and any applicable contractual provisions, the assignment of the Restriction
Asset subject thereto shall become effective automatically as of the Effective
Time, without further action on the part of any party to this Agreement. Each of
the applicable parties to this Agreement that were involved with the conveyance
of a Restriction Asset agree to use their reasonable best efforts to obtain on a
timely basis satisfaction of any Restriction applicable to any Restriction Asset
conveyed by or acquired by any of them. The description of any portion of the
Conveyed Assets as a "Restriction Asset" shall not be construed as an admission
that any Restriction exists with respect to the transfer of such portion of the
Conveyed Assets. In the event that any Restriction Asset exists, the applicable
party agrees to continue to hold such Restriction Asset in trust for the
exclusive benefit of the applicable party to whom such Restriction Asset was
intended to be conveyed and to otherwise use its reasonable best efforts to
provide such other party with the benefits thereof, and the party holding such
Restriction Asset will enter into other agreements, or take such other action as
it may deem necessary, in order to ensure that the applicable party to whom such
Restriction Asset was intended to be conveyed has the assets and concomitant
rights necessary to enable the applicable party to operate such Restriction
Asset in all material respects as it was operated prior to the Effective Time.

      6.3 Costs. The MLP shall pay, or reimburse the other parties hereto for
their payment of, all sales, use and similar taxes arising out of the
contributions, conveyances and deliveries to be made hereunder, and shall pay
all documentary, filing, recording, transfer, deed, and conveyance taxes and
fees required in connection therewith. In addition, the MLP shall be

                                       16
<PAGE>

responsible for all costs, liabilities and expenses (including court costs and
reasonable attorneys' fees) incurred in connection with the satisfaction or
waiver of any Restriction pursuant to Section 6.2.

      6.4 Ad Valorem Tax Payment.

            (a) As between Ark and ACIN LLC, but subject to rights of
reimbursement from the Ark Operators, all real estate and personal property
taxes relating to the Ark Assets (herein collectively referred to as the "Ark
Taxes") for which tax bills are received prior to the Closing Date shall be paid
by Ark and all such tax bills received on and after the Closing Date shall be
paid by ACIN LLC. Ark shall bear all real estate and personal property taxes
relating to the Ark Reservations (the "Ark Reservations Taxes") for all periods
of time, both before and after the Closing Date. As soon as practical after the
Closing Date, Ark and ACIN LLC shall, to the extent possible, cause the
applicable tax assessors to separately assess the Ark Taxes and the Ark
Reservations Taxes. After tax bills are received based on the separate
assessment of the Ark Taxes and the Ark Reservations Taxes, Ark shall be
responsible for the timely payment of the Ark Reservations Taxes and provide to
ACIN LLC proof of payment of said taxes. ACIN LLC shall then submit to the
lessees of the Ark Assets (the "Ark Operators") such proof of payment of the Ark
Reservations Taxes as have been paid by Ark, within a reasonable time of such
payment for reimbursement by the Ark Operators under the terms of such leases.
To the extent the Ark Operators reimburse ACIN LLC for the Ark Reservations
Taxes, ACIN LLC shall forward such amounts to Ark. ACIN LLC shall be responsible
for submitting proof of payment by ACIN LLC of the Ark Taxes to the Ark
Operators for reimbursement. ACIN LLC shall pay the total amount of taxes shown
on tax bills received on or after Closing that are not based on the separate
assessment of the Ark Taxes and the Ark Reservations Taxes and shall be
responsible for submitting proof of payment by ACIN LLC of both the Ark Taxes
and the Ark Reservations Taxes to the Ark Operators for reimbursement; and Ark
shall fully reimburse ACIN LLC for the full amount of the Ark Reservations
Taxes, if any, which are not reimbursed by the Ark Operators.

            (b) As between WPP and WPP LLC, but subject to rights of
reimbursement from the WPP Operators, all real estate and personal property
taxes relating to the WPP Assets (herein collectively referred to as the "WPP
Taxes") for which tax bills are received prior to the Closing Date shall be paid
by WPP and all such tax bills received on and after the Closing Date shall be
paid by WPP LLC. WPP shall bear all real estate and personal property taxes
relating to the WPP Reservations (the "WPP Reservations Taxes") for all periods
of time, both before and after the Closing Date. As soon as practical after the
Closing Date, WPP and WPP LLC shall, to the extent possible, cause the
applicable tax assessors to separately assess the WPP Taxes and the WPP
Reservations Taxes. After tax bills are received based on the separate
assessment of the WPP Taxes and the WPP Reservations Taxes, WPP shall be
responsible for the timely payment of the WPP Reservations Taxes and provide to
WPP LLC proof of payment of said taxes. WPP LLC shall then submit to the lessees
of the WPP Assets (the "WPP Operators") such proof of payment of the WPP
Reservations Taxes as have been paid by WPP, within a reasonable time of such
payment for reimbursement by the WPP Operators under the terms of such leases.
To the extent the WPP Operators reimburse WPP LLC for the WPP Reservations
Taxes, WPP LLC shall forward such amounts to WPP. WPP LLC shall be responsible
for submitting proof of payment by WPP LLC of the WPP Taxes to the WPP Operators
for reimbursement. WPP LLC

                                       17
<PAGE>

shall pay the total amount of taxes shown on tax bills received on or after
Closing that are not based on the separate assessment of the WPP Taxes and the
WPP Reservations Taxes and shall be responsible for submitting proof of payment
by WPP LLC of both the WPP Taxes and the WPP Reservations Taxes to the WPP
Operators for reimbursement; and WPP shall fully reimburse WPP LLC for the full
amount of the WPP Reservations Taxes, if any, which are not reimbursed by the
WPP Operators.

            (c) As between New Gauley and NNG LLC, but subject to rights of
reimbursement from the New Gauley Operators, all real estate and personal
property taxes relating to the New Gauley Assets (herein collectively referred
to as the "New Gauley Taxes") for which tax bills are received prior to the
Closing Date shall be paid by New Gauley and all such tax bills received on and
after the Closing Date shall be paid by NNG LLC. New Gauley shall bear all real
estate and personal property taxes relating to the New Gauley Reservations (the
"New Gauley Reservations Taxes") for all periods of time, both before and after
the Closing Date. As soon as practical after the Closing Date, New Gauley and
NNG LLC shall, to the extent possible, cause the applicable tax assessors to
separately assess the New Gauley Taxes and the New Gauley Reservations Taxes.
After tax bills are received based on the separate assessment of the New Gauley
Taxes and the New Gauley Reservations Taxes, New Gauley shall be responsible for
the timely payment of the New Gauley Reservations Taxes and provide to NNG LLC
proof of payment of said taxes. NNG LLC shall then submit to the lessees of the
New Gauley Assets (the "New Gauley Operators") such proof of payment of the New
Gauley Reservations Taxes as have been paid by New Gauley, within a reasonable
time of such payment for reimbursement by the New Gauley Operators under the
terms of such leases. To the extent the New Gauley Operators reimburse NNG LLC
for the New Gauley Reservations Taxes, NNG LLC shall forward such amounts to New
Gauley. NNG LLC shall be responsible for submitting proof of payment by NNG LLC
of the New Gauley Taxes to the New Gauley Operators for reimbursement. NNG LLC
shall pay the total amount of taxes shown on tax bills received on or after
Closing that are not based on the separate assessment of the New Gauley Taxes
and the New Gauley Reservations Taxes and shall be responsible for submitting
proof of payment by NNG LLC of both the New Gauley Taxes and the New Gauley
Reservations Taxes to the New Gauley Operators for reimbursement; and New Gauley
shall fully reimburse NNG LLC for the full amount of the New Gauley Reservations
Taxes, if any, which are not reimbursed by the New Gauley Operators.

            (d) As between Great Northern and GNP LLC, but subject to rights of
reimbursement from the Great Northern Operators, all real estate and personal
property taxes relating to the Great Northern Assets (herein collectively
referred to as the "Great Northern Taxes") for which tax bills are received
prior to the Closing Date shall be paid by Great Northern and all such tax bills
received on and after the Closing Date shall be paid by GNP LLC. Great Northern
shall bear all real estate and personal property taxes relating to the Great
Northern Reservations (the "Great Northern Reservations Taxes") for all periods
of time, both before and after the Closing Date. As soon as practical after the
Closing Date, Great Northern and GNP LLC shall, to the extent possible, cause
the applicable tax assessors to separately assess the Great Northern Taxes and
the Great Northern Reservations Taxes. After tax bills are received based on the
separate assessment of the Great Northern Taxes and the Great Northern
Reservations Taxes, Great Northern shall be responsible for the timely payment
of the Great Northern Reservations Taxes and provide to GNP LLC proof of payment
of said taxes. GNP LLC shall then submit to

                                       18
<PAGE>

the lessees of the Great Northern Assets (the "Great Northern Operators") such
proof of payment of the Great Northern Reservations Taxes as have been paid by
Great Northern, within a reasonable time of such payment for reimbursement by
the Great Northern Operators under the terms of such leases. To the extent the
Great Northern Operators reimburse GNP LLC for the Great Northern Reservations
Taxes, GNP LLC shall forward such amounts to Great Northern. GNP LLC shall be
responsible for submitting proof of payment by GNP LLC of the Great Northern
Taxes to the Great Northern Operators for reimbursement. GNP LLC shall pay the
total amount of taxes shown on tax bills received on or after Closing that are
not based on the separate assessment of the Great Northern Taxes and the Great
Northern Reservations Taxes and shall be responsible for submitting proof of
payment by GNP LLC of both the Great Northern Taxes and the Great Northern
Reservations Taxes to the Great Northern Operators for reimbursement; and Great
Northern shall fully reimburse GNP LLC for the full amount of the Great Northern
Reservations Taxes, if any, which are not reimbursed by the Great Northern
Operators.

      6.5 Headings; References; Interpretation. All Article and Section headings
in this Agreement are for convenience only and shall not be deemed to control or
affect the meaning or construction of any of the provisions hereof. The words
"hereof," "herein" and "hereunder" and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole, including without
limitation, all Schedules attached hereto, and not to any particular provision
of this Agreement. All references herein to Articles, Sections, and Schedules
shall, unless the context requires a different construction, be deemed to be
references to the Articles, Sections and Schedules of this Agreement,
respectively, and all such Schedules attached hereto are hereby incorporated
herein and made a part hereof for all purposes. All personal pronouns used in
this Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders, and the singular shall include the plural and vice
versa. The use herein of the word "including" following any general statement,
term or matter shall not be construed to limit such statement, term or matter to
the specific items or matters set forth immediately following such word or to
similar items or matters, whether or not non-limiting language (such as "without
limitation," "but not limited to," or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such
general statement, term or matter.

      6.6 Successors and Assigns. The Agreement shall be binding upon and inure
to the benefit of the parties signatory hereto and their respective successors
and assigns.

      6.7 No Third Party Rights. The provisions of this Agreement are intended
to bind the parties signatory hereto as to each other and are not intended to
and do not create rights in any other person or confer upon any other person any
benefits, rights or remedies and no person is or is intended to be a third party
beneficiary of any of the provisions of this Agreement.

      6.8 Counterparts. This Agreement may be executed in any number of
counterparts, all of which together shall constitute one agreement binding on
the parties hereto.

      6.9 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas applicable to contracts made and
to be performed wholly within such state without giving effect to conflict of
law principles thereof, except to the

                                       19
<PAGE>

extent that it is mandatory that the law of some other jurisdiction, wherein the
Conveyed Assets are located, shall apply.

      6.10 Severability. If any of the provisions of this Agreement are held by
any court of competent jurisdiction to contravene, or to be invalid under, the
laws of any political body having jurisdiction over the subject matter hereof,
such contravention or invalidity shall not invalidate the entire Agreement.
Instead, this Agreement shall be construed as if it did not contain the
particular provision or provisions held to be invalid, and an equitable
adjustment shall be made and necessary provision added so as to give effect to
the intention of the parties as expressed in this Agreement at the time of
execution of this Agreement.

      6.11 Deed; Bill of Sale; Assignment. To the extent required and permitted
by applicable law, this Agreement shall also constitute a "deed," "bill of sale"
or "assignment" of the Conveyed Assets.

      6.12 Amendment or Modification. This Agreement may be amended or modified
from time to time only by the written agreement of all the parties hereto and
affected thereby.

      6.13 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements between the parties, whether
oral or written, with respect to its subject matter. This Agreement and such
instruments contain the entire understanding of the parties with respect to the
subject matter hereof and thereof. No understanding, representation, promise or
agreement, whether oral or written, is intended to be or shall be included in or
form part of this Agreement unless it is contained in a written amendment hereto
executed by the parties hereto after the date of this Agreement.

                  [Remainder of page intentionally left blank.]

                                       20
<PAGE>

      IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of the date first above written.

                           New Gauley Coal Corporation

                           By:   /s/  Nick Carter
                               -------------------------------------------------
                               Name:  Nick Carter
                               Title: President

                           Western Pocahontas Properties Limited Partnership

                           By: Western Pocahontas Corporation, its general
                               partner

                               By: /s/ Nick Carter
                                  ----------------------------------------------
                               Name:   Nick Carter
                               Title:  President

                           Great Northern Properties Limited Partnership

                           By: GNP Management Corporation, its general partner

                               By: /s/ Dwight L. Dunlap
                                  ----------------------------------------------
                               Name:   Dwight L. Dunlap
                               Title:  Chief Financial Officer

                           Ark Land Company

                           By:   /s/  Steven E. McCurdy
                               -------------------------------------------------
                               Name:  Steven E. McCurdy
                               Title: President

                          Signature Page 1 of 3 to the
                Contribution, Conveyance and Assumption Agreement
<PAGE>

                                     NNG LLC

                                     By: NRP (Operating) LLC, its sole operating
                                         manager

                                         By: /s/ Nick Carter
                                             -----------------------------------
                                         Name:   Nick Carter
                                         Title:  President

                                     WPP LLC

                                     By: NRP (Operating) LLC, its sole operating
                                         manager

                                         By: /s/ Nick Carter
                                             -----------------------------------
                                         Name:   Nick Carter
                                         Title:  President

                                     GNP LLC

                                     By: NRP (Operating) LLC, its sole operating
                                         manager

                                         By: /s/ Nick Carter
                                             -----------------------------------
                                         Name:   Nick Carter
                                         Title:  President

                                     ACIN LLC

                                     By: NRP (Operating) LLC, its sole operating
                                         manager

                                         By: /s/ Nick Carter
                                             -----------------------------------
                                         Name:   Nick Carter
                                         Title:  President

                                     Robertson Coal Management LLC

                                     By: /s/ Corbin J. Robertson, Jr.
                                        ----------------------------------------
                                        Name:    Corbin J. Robertson, Jr.
                                        Title:   Sole Member

                          Signature Page 2 of 3 to the
                Contribution, Conveyance and Assumption Agreement
<PAGE>

                                       NRP (Operating) LLC

                                       By: /s/ Nick Carter
                                          --------------------------------------
                                           Name:   Nick Carter
                                           Title:  President

                                       GP Natural Resource Partners LLC

                                       By: /s/ Nick Carter
                                          --------------------------------------
                                           Name:   Nick Carter
                                           Title:  President

                                       NRP (GP) LP

                                       By: GP Natural Resource Partners LLC,
                                           its general partner

                                       By: /s/ Nick Carter
                                          --------------------------------------
                                           Name:   Nick Carter
                                           Title:  President

                                       Natural Resource Partners L.P.

                                       By: NRP (GP) LP, its general partner
                                           By: GP Natural Resource Partners LLC,
                                               its general partner

                                       By: /s/ Nick Carter
                                          --------------------------------------
                                           Name:   Nick Carter
                                           Title:  President

                          Signature Page 3 of 3 to the
                Contribution, Conveyance and Assumption Agreement
<PAGE>

                                  SCHEDULE 2.1
                                NEW GAULEY ASSETS

The real property and real property interests as are being conveyed by New
Gauley Coal Corporation to NNG LLC, pursuant to, and as more fully described in
the deeds of conveyance, dated October 14, 2002 by New Gauley Coal Company, as
grantor to NNG LLC, as grantee, to be recorded in the real estate recording
offices in the following counties:

Nicholas County, West Virginia

Greenbrier County, West Virginia

Cullman County, Alabama

Walker County, Alabama

                                  SCHEDULE 2.1
                CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT
<PAGE>

                                  SCHEDULE 2.2
                                   WPP ASSETS

The real property and real property interests as are being conveyed by Western
Pocahontas Properties Limited Partnership to WPPLLC, pursuant to, and as more
fully described in the deeds of conveyance, dated October 14, 2002 by Western
Pocahontas Properties Limited Partnership, as grantor to WPP LLC, as grantee, to
be recorded in the real estate recording offices in the following counties:

Boone County, West Virginia                      Cullman County, Alabama

Fayette County, West Virginia                    Walker County, Alabama

Grant County, West Virginia                      Breathitt County, Kentucky

Logan County, West Virginia                      Floyd County, Kentucky

Marion County, West Virginia                     Knott County, Kentucky

Mineral County, West Virginia                    Magoffin County, Kentucky

Mingo County, West Virginia                      Pike County, Kentucky

Nicholas County, West Virginia

Pocahontas County, West Virginia

Preston County, West Virginia

Randolph County, West Virginia

Raleigh County, West Virginia

Tucker County, West Virginia

Webster County, West Virginia

Wetzel County, West Virginia

Wyoming County, West Virginia

Garrett County, Maryland

Sullivan County, Indiana

Vigo County, Indiana

                                  SCHEDULE 2.2
                CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT
<PAGE>

                                  SCHEDULE 2.3
                              GREAT NORTHERN ASSETS

The real property and real property interests as are being conveyed by Great
Northern Properties Limited Partnership to GNPLLC, pursuant to, and as more
fully described in the deeds of conveyances, dated October 14, 2002 by Great
Northern Properties Limited Partnership, as grantor to GNP LLC, as grantee, to
be recorded in the real estate recording offices in the following counties:

Rosebud County, Montana

Treasure County, Montana

                                  SCHEDULE 2.3
                CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT
<PAGE>

                                  SCHEDULE 2.4
                                   ARK ASSETS

The real property and real property interests as are being conveyed by Ark Land
Company to ACIN LLC pursuant to, and as more fully described in the deeds of
conveyance, dated October 10, 2002 by Ark Land Company, as grantor to ACIN LLC,
as grantee, to be recorded in the real estate recording offices in the following
counties:

Letcher County, Kentucky

Harlan County, Kentucky

Johnson County, Kentucky

Kanawha County, West Virginia

Nicholas County, West Virginia

Clay County, West Virginia

Boone County, West Virginia

Raleigh County, West Virginia

Fayette County, West Virginia

Lincoln County, West Virginia

Wise County, Virginia

Perry County, Illinois

Jackson County, Illinois

                                  SCHEDULE 2.4
                CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT<PAGE>
                                                                    EXHIBIT 10.3

                            NATURAL RESOURCE PARTNERS
                            LONG-TERM INCENTIVE PLAN

SECTION 1. Purpose of the Plan.

         The Natural Resource Partners Long-Term Incentive Plan (the "Plan") is
intended to promote the interests of Natural Resource Partners L.P., a Delaware
limited partnership (the "Partnership"), by providing to employees and directors
of GP Natural Resource Partners LLC (the "Company") and its Affiliates who
perform services for the Partnership incentive compensation awards for superior
performance that are based on Units. The Plan is also contemplated to enhance
the ability of the Company and its Affiliates to attract and retain the services
of individuals who are essential for the growth and profitability of the
Partnership and to encourage them to devote their best efforts to the business
of the Partnership, thereby advancing the interests of the Partnership and its
partners.

SECTION 2. Definitions.

         As used in the Plan, the following terms shall have the meanings set
forth below:

         "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.

         "Award" means an Option or Phantom Unit granted under the Plan.

         "Board" means the Board of Directors of the Company.

         "Change in Control" shall be deemed to have occurred upon the
occurrence of one or more of the following events: (i) any sale, lease, exchange
or other transfer (in one or a series of related transactions) of all or
substantially all of the assets of the Partnership, NRP (GP) LP or the Company
to any Person, other than the Partnership, NRP (GP) LP, the Company or any of
their Affiliates, or (ii) any merger, reorganization, consolidation or other
transaction pursuant to which more than 50% of the combined voting power of the
outstanding equity interests in either NRP (GP) LP or the Company ceases to be
owned by the Persons who own such interests, respectively, as of the effective
date of the initial public offering of Units.

         "Committee" means the Compensation Committee of the Board or such other
committee of the Board appointed by the Board to administer the Plan.

         "Director" means a member of the Board or the Board of Directors or
Board of Managers of an Affiliate who is not an Employee.

         "Employee" means any employee of the Company or an Affiliate, as
determined by the Committee.

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

<PAGE>

         "Fair Market Value" means the closing sales price of a Unit on the
applicable date (or if there is no trading in the Units on such date, on the
next preceding date on which there was trading) as reported in The Wall Street
Journal (or other reporting service approved by the Committee). In the event (1)
there is no sale of Units on the New York Stock Exchange or any other national
securities exchange on which the Units are listed for more than 10 days
preceding such date or (2) the Units are not publicly traded at the time a
determination of fair market value is required to be made hereunder, the
determination of fair market value shall be made in good faith by the Committee.

         "Option" means an option to purchase Units granted under the Plan.

         "Participant" means any Employee or Director granted an Award under the
Plan.

         "Partnership Agreement" means the Amended and Restated Agreement of
Limited Partnership of Natural Resource Partners L.P.

         "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.

         "Phantom Unit" means a phantom (notional) Unit granted under the Plan
which upon vesting entitles the Participant to receive a Unit or an amount of
cash equal to the Fair Market Value of a Unit, whichever is determined by the
Committee.

         "Restricted Period" means the period established by the Committee with
respect to an Award during which the Award remains subject to forfeiture (is not
vested) and is not exercisable by or payable to the Participant.

         "Rule 16b-3" means Rule 16b-3 promulgated by the SEC under the Exchange
Act, or any successor rule or regulation thereto as in effect from time to time.

         "SEC" means the Securities and Exchange Commission, or any successor
thereto.

         "Unit" means a Common Unit of the Partnership.

SECTION 3. Administration.

         The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of the members of the
Committee who are present at any meeting thereof at which a quorum is present,
or acts unanimously approved by the members of the Committee in writing, shall
be the acts of the Committee. Subject to the following and any applicable law,
the Committee, in its sole discretion, may delegate any or all of its powers and
duties under the Plan (provided the Chief Executive Officer is a member of the
Board), including the power to grant Awards under the Plan, to the Chief
Executive Officer of the Company, subject to such limitations on such delegated
powers and duties as the Committee may impose, if any. Upon any such delegation
all references in the Plan to the "Committee", other than in Section 7, shall be
deemed to include the Chief Executive Officer; provided, however, that such
delegation shall not limit the Chief Executive Officer's right to receive Awards
under the Plan. Notwithstanding the

                                      -2-
<PAGE>

foregoing, the Chief Executive Officer may not grant Awards to, or take any
action with respect to any Award previously granted to, a person who is an
officer subject to Rule 16b-3 or a member of the Board. Subject to the terms of
the Plan and applicable law, and in addition to other express powers and
authorizations conferred on the Committee by the Plan, the Committee shall have
full power and authority to: (i) designate Participants; (ii) determine the type
or types of Awards to be granted to a Participant; (iii) determine the number of
Units to be covered by Awards; (iv) determine the terms and conditions of any
Award; (v) determine whether, to what extent, and under what circumstances
Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and
administer the Plan and any instrument or agreement relating to an Award made
under the Plan; (vii) establish, amend, suspend, or waive such rules and
regulations and appoint such agents as it shall deem appropriate for the proper
administration of the Plan; and (viii) make any other determination and take any
other action that the Committee deems necessary or desirable for the
administration of the Plan. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the
Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons, including the Company, the Partnership, any Affiliate, any
Participant, and any beneficiary of any Award.

SECTION 4. Units.

         (a) Units Available. Subject to adjustment as provided in Section 4(c),
the number of Units with respect to which Awards may be granted under the Plan
shall be equal to 3% of the number of Units outstanding immediately following
the initial public offering of Units. If any Option or Phantom Unit is forfeited
or otherwise terminates or is canceled without the delivery of Units, then the
Units covered by such Award, to the extent of such forfeiture, termination or
cancellation, shall again be Units with respect to which Awards may be granted.

         (b) Sources of Units Deliverable Under Awards. Any Units delivered
pursuant to an Award shall consist, in whole or in part, of Units acquired in
the open market, from any Affiliate, the Partnership or any other Person, or any
combination of the foregoing, as determined by the Committee in its discretion.

         (c) Adjustments. In the event that the Committee determines that any
distribution (whether in the form of cash, Units, other securities, or other
property), recapitalization, split, reverse split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, or exchange of Units
or other securities of the Partnership, issuance of warrants or other rights to
purchase Units or other securities of the Partnership, or other similar
transaction or event affects the Units such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or
all of (i) the number and type of Units (or other securities or property) with
respect to which Awards may be granted, (ii) the number and type of Units (or
other securities or property) subject to outstanding Awards, and (iii) the grant
or exercise price with respect to any Award or, if deemed appropriate, make
provision for a cash payment to the holder of an outstanding Award; provided,
that the number of Units subject to any Award shall always be a whole number.

                                      -3-
<PAGE>

SECTION 5. Eligibility.

         Any Employee or Director who performs services for the Partnership
shall be eligible to be designated a Participant and receive an Award under the
Plan.

SECTION 6. Awards.

         (a) Options. The Committee shall have the authority to determine the
Employees and Directors to whom Options shall be granted, the number of Units to
be covered by each Option, the purchase price therefor and the conditions and
limitations applicable to the exercise of the Option, including the following
terms and conditions and such additional terms and conditions, as the Committee
shall determine, that are not inconsistent with the provisions of the Plan.

                  (i) Exercise Price. The purchase price per Unit purchasable
         under an Option shall be determined by the Committee at the time the
         Option is granted and may not be less than its Fair Market Value as of
         the date of grant.

                  (ii) Time and Method of Exercise. The Committee shall
         determine (x) the Restricted Period, i.e., the time or times at which
         an Option may be exercised in whole or in part, which may include,
         without limitation, accelerated vesting upon the achievement of
         specified performance goals, and (y) the method or methods by which
         payment of the exercise price with respect thereto may be made or
         deemed to have been made, which may include, without limitation, cash,
         check acceptable to the Company, a "cashless-broker" exercise through
         procedures approved by the Company, other securities or other property,
         a recourse note from the Participant in a form acceptable to the
         Company, or any combination thereof, having a Fair Market Value on the
         exercise date equal to the relevant exercise price.

                  (iii) Forfeiture. Except as otherwise provided in the terms of
         the Option grant, upon termination of a Participant's employment with
         the Company and its Affiliates or membership on the Board, whichever is
         applicable, for any reason during the applicable Restricted Period, all
         Options shall be forfeited by the Participant (or any transferee)
         unless otherwise provided in a written employment agreement between the
         Participant and the Company or its Affiliates. The Committee may, in
         its discretion, waive in whole or in part such forfeiture with respect
         to a Participant's Options.

         (b) Phantom Units. The Committee shall have the authority to determine
the Employees and Directors to whom Phantom Units shall be granted, the number
of Phantom Units to be granted to each such Participant, the Restricted Period,
the conditions under which the Phantom Units may become vested or forfeited,
which may include, without limitation, the accelerated vesting upon the
achievement of specified performance goals, and such other terms and conditions
as the Committee may establish with respect to such Awards.

                  (i) Forfeiture. Except as otherwise provided in the terms of
         the Phantom Units grant, upon termination of a Participant's employment
         with the Company and its Affiliates or membership on the Board,
         whichever is applicable, for any reason during the applicable
         Restricted Period, all Phantom Units shall be forfeited by the
         Participant (or any transferee)

                                      -4-
<PAGE>

         unless otherwise provided in a written employment agreement between the
         Participant and the Company or its Affiliates. The Committee may, in
         its discretion, waive in whole or in part such forfeiture with respect
         to a Participant's Phantom Units.

                  (ii) Lapse of Restrictions. Upon or as soon as reasonably
         practical following the vesting of each Phantom Unit, the Participant
         shall be entitled to receive from the Company one Unit or cash equal to
         the Fair Market Value of a Unit, as determined by the Committee in its
         discretion.

         (c) General.

                  (i) Awards May Be Granted Separately or Together. Awards may,
         in the discretion of the Committee, be granted either alone or in
         addition to, in tandem with, or in substitution for any other Award
         granted under the Plan or any award granted under any other plan of the
         Company or any Affiliate. Awards granted in addition to or in tandem
         with other Awards or awards granted under any other plan of the Company
         or any Affiliate may be granted either at the same time as or at a
         different time from the grant of such other Awards or awards.

                  (ii)     Limits on Transfer of Awards.

                           (A) Except as provided in Sections 6(a) and (b) above
                  or (C) below, each Option shall be exercisable only by the
                  Participant during the Participant's lifetime.

                           (B) Except as provided in (C) below, no Award and no
                  right under any such Award may be assigned, alienated,
                  pledged, attached, sold or otherwise transferred or encumbered
                  by a Participant and any such purported assignment,
                  alienation, pledge, attachment, sale, transfer or encumbrance
                  shall be void and unenforceable against the Company or any
                  Affiliate.

                           (C) To the extent specifically provided by the
                  Committee with respect to an Option grant, an Option may be
                  transferred by a Participant without consideration to
                  immediate family members or related family trusts, limited
                  partnerships or similar entities or on such terms and
                  conditions as the Committee may from time to time establish.
                  In addition, to the extent provided in the grant agreement
                  Awards may be transferred by will and the laws of descent and
                  distribution.

                  (iii) Term of Awards. The term of each Award shall be for such
         period as may be determined by the Committee.

                  (iv) Unit Certificates. All certificates for Units or other
         securities of the Partnership delivered under the Plan pursuant to any
         Award or the exercise thereof shall be subject to such stop transfer
         orders and other restrictions as the Committee may deem advisable under
         the Plan or the rules, regulations, and other requirements of the SEC,
         any stock exchange upon which such Units or other securities are then
         listed, and any applicable federal or state laws, and the Committee may
         cause a legend or legends to be put on any such certificates to make
         appropriate reference to such restrictions.

                                      -5-
<PAGE>

                  (v) Consideration for Grants. Awards may be granted for such
         consideration, including services or such minimal consideration as may
         be required by law, as the Committee determines.

                  (vi) Delivery of Units or other Securities and Payment by
         Participant of Consideration. Notwithstanding anything in the Plan or
         any grant agreement to the contrary, delivery of Units pursuant to the
         exercise or vesting of an Award may be deferred for any period during
         which, in the good faith determination of the Committee, the Company is
         not reasonably able to obtain Units to deliver pursuant to such Award
         without violating the rules or regulations of any applicable law or
         securities exchange. No Units or other securities shall be delivered
         pursuant to any Award until payment in full of any amount required to
         be paid pursuant to the Plan or the applicable Award grant agreement
         (including, without limitation, any exercise price or tax withholding)
         is received by the Company. Such payment may be made by such method or
         methods and in such form or forms as the Committee shall determine,
         including, without limitation, cash, other Awards, withholding of
         Units, cashless-broker exercises with simultaneous sale, or any
         combination thereof; provided that the combined value, as determined by
         the Committee, of all cash and cash equivalents and the Fair Market
         Value of any such Units or other property so tendered to the Company,
         as of the date of such tender, is at least equal to the full amount
         required to be paid to the Company pursuant to the Plan or the
         applicable Award agreement.

                  (vii) Change in Control. Upon a Change in Control or such
         period prior thereto as may be established by the Committee, all Awards
         shall automatically vest and become payable or exercisable, as the case
         may be, in full. In this regard, all Restricted Periods shall terminate
         and all performance criteria, if any, shall be deemed to have been
         achieved at the maximum level. To the extent an Option is not exercised
         upon a Change in Control, the Committee may, in its discretion, cancel
         such Award without payment or provide for a replacement grant with
         respect to such property and on such terms as it deems appropriate.

SECTION 7. Amendment and Termination.

         Except to the extent prohibited by applicable law:

         (a) Amendments to the Plan. Except as required by the rules of the
principal securities exchange on which the Units are traded and subject to
Section 7(b) below, the Board or the Committee may amend, alter, suspend,
discontinue, or terminate the Plan in any manner, including increasing the
number of Units available for Awards under the Plan, without the consent of any
partner, Participant, other holder or beneficiary of an Award, or other Person.

         (b) Amendments to Awards. Subject to Section 7(a), the Committee may
waive any conditions or rights under, amend any terms of, or alter any Award
theretofore granted, provided no change, other than pursuant to Section 7(c), in
any Award shall materially reduce the benefit to a Participant without the
consent of such Participant.

         (c) Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee is hereby authorized to make adjustments in
the terms and conditions of,

                                      -6-
<PAGE>

and the criteria included in, Awards in recognition of unusual or nonrecurring
events (including, without limitation, the events described in Section 4(c) of
the Plan) affecting the Partnership or the financial statements of the
Partnership, or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

SECTION 8. General Provisions.

         (a) No Rights to Award. No Person shall have any claim to be granted
any Award under the Plan, and there is no obligation for uniformity of treatment
of Participants. The terms and conditions of Awards need not be the same with
respect to each recipient.

         (b) Withholding. The Company or any Affiliate is authorized to withhold
from any Award, from any payment due or transfer made under any Award or from
any compensation or other amount owing to a Participant the amount (in cash,
Units, Units that would otherwise be issued pursuant to such Award or other
property) of any applicable taxes payable in respect of the grant of an Award,
its exercise, the lapse of restrictions thereon, or any payment or transfer
under an Award or under the Plan and to take such other action as may be
necessary in the opinion of the Company to satisfy its withholding obligations
for the payment of such taxes.

         (c) No Right to Employment. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate or to remain on the Board, as applicable. Further, the
Company or an Affiliate may at any time dismiss a Participant from employment,
free from any liability or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any Award agreement.

         (d) Governing Law. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Delaware law without regard to its
conflict of laws principles.

         (e) Severability. If any provision of the Plan or any award is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, person or award and the remainder of the Plan
and any such Award shall remain in full force and effect.

         (f) Other Laws. The Committee may refuse to issue or transfer any Units
or other consideration under an Award if, in its sole discretion, it determines
that the issuance or transfer or such Units or such other consideration might
violate any applicable law or regulation, the rules of the principal securities
exchange on which the Units are then traded, or entitle the Partnership or an
Affiliate to recover the same under Section 16(b) of the Exchange Act, and any
payment tendered to the Company by a Participant, other holder or beneficiary in
connection with the exercise of such Award shall be promptly refunded to the
relevant Participant, holder or beneficiary.

                                      -7-
<PAGE>

         (g) No Trust or Fund Created. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any participating Affiliate and a
Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any participating Affiliate pursuant to
an award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

         (h) No Fractional Units. No fractional Units shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Units or whether such fractional Units or any rights
thereto shall be canceled, terminated, or otherwise eliminated.

         (i) Headings. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the Plan or any provision thereof.

         (j) Facility Payment. Any amounts payable hereunder to any person under
legal disability or who, in the judgment of the Committee, is unable to properly
manage his financial affairs, may be paid to the legal representative of such
person, or may be applied for the benefit of such person in any manner which the
Committee may select, and the Company shall be relieved of any further liability
for payment of such amounts.

         (k) Gender and Number. Words in the masculine gender shall include the
feminine gender, the plural shall include the singular and the singular shall
include the plural.

SECTION 9. Term of the Plan.

         The Plan shall be effective on the date of its approval by the Board
and shall continue until the date terminated by the Board or Units are no longer
available for the payment of Awards under the Plan, whichever occurs first.
However, unless otherwise expressly provided in the Plan or in an applicable
Award Agreement, any Award granted prior to such termination, and the authority
of the Board or the Committee to amend, alter, adjust, suspend, discontinue, or
terminate any such Award or to waive any conditions or rights under such Award,
shall extend beyond such termination date.

                                      -8-

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