Execution Copy
3,250,000 Units
STAR GAS PARTNERS, L.P.
Common Units
UNDERWRITING AGREEMENT
_________________
August 7, 2001
UBS WARBURG LLC
X.X. XXXXXXX & SONS, INC.
XXXXXX BROTHERS INC.
CIBC WORLD MARKETS CORP.
XXXX XXXXXXXX INCORPORATED
FIRST UNION SECURITIES, INC.
As Representatives of the several Underwriters
named in Schedule 1 hereto
c/o UBS Warburg LLC
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Ladies and Gentlemen:
Star Gas Partners, L.P., a Delaware limited partnership (the
"Partnership"), proposes to sell an aggregate of 3,250,000 Common Units
representing limited partner interests in the Partnership (the "Firm Units"), to
you and the other underwriters named in Schedule 1 (collectively, the
"Underwriters"), for whom you are acting as representatives (the
"Representatives"). If you are the only Underwriters named in Schedule 1, all
references herein to the Representatives shall be deemed to be to you as the
Underwriter. The Partnership has also agreed to grant to the several
Underwriters an option (the "Option") to purchase up to an aggregate of 487,500
additional common units (the "Option Units") on the terms and for the purposes
set forth in Section 1(b). The Firm Units and the Option Units are hereinafter
collectively referred to as the "Units."
The initial public offering price per Unit and the purchase price per Unit
to be paid by the several Underwriters shall be agreed upon by the Partnership
and the Representatives, acting on behalf of the several Underwriters, and such
agreement shall be set forth in a separate written instrument substantially in
the form of Exhibit A hereto (the "Price Determination Agreement"). The Price
Determination Agreement may take the form of an exchange of any standard form of
written telecommunication among the Partnership and UBS Warburg LLC ("UBS
Warburg") on behalf of the Representatives and shall specify such applicable
information as is indicated in Exhibit A hereto. The offering of the Units will
be governed by this Agreement, as supplemented by the Price Determination
Agreement. From and after the date of the execution and delivery of the Price
Determination Agreement, this Agreement shall be deemed to incorporate, and,
unless the context otherwise indicates, all references contained herein to "this
Agreement" and to the phrase "herein" shall be deemed to include, the Price
Determination Agreement.
Star Gas LLC, a Delaware limited liability company (the "General Partner"),
is the sole general partner of the Partnership and Star Gas Propane, L.P., a
Delaware limited partnership (the "Operating Partnership"). Star/Petro, Inc.
("Star/Petro"), Petro Holdings, Inc., Petroleum Heat and Power Co., Inc.
("Petro"), Total Gas & Electric, Inc. ("TG&E"), Total Gas & Electricity (PA),
Inc., TG&E Service Company, Inc. and Stellar Propane Corp., which are direct and
indirect subsidiaries of the Partnership, are referred to herein as the
"Principal Subsidiaries." The Partnership, the Operating Partnership, the
General Partner, the Principal Subsidiaries and their subsidiaries are referred
to herein as the "Star Entities." Xxxxxx Oil Co., L.P. ("Xxxxxx X.X."), Xxxxxx
Oil Co., Inc. ("Xxxxxx Inc."), Blueray Systems, Inc. ("Blueray") and Region Oil
Plumbing, Heating and Cooling, Inc. ("Region Oil") are referred to herein as the
"Xxxxxx Entities." The Partnership, the Operating Partnership, Star/Petro and
the General Partner (the "Star Parties") hereby confirm their agreement (this
"Agreement") with the several Underwriters as follows:
Section 1. Agreement to Sell and Purchase.
(a) On the basis of the representations, warranties and agreements of
the Star Parties herein contained and subject to all the terms and conditions of
this Agreement, the Partnership agrees to issue and sell to each Underwriter,
and each Underwriter, severally and not jointly, agrees to purchase from the
Partnership, at the purchase price per Firm Unit to be agreed upon by UBS
Warburg on behalf of the Representatives and the Partnership in accordance with
Section 1(c) or 1(d) hereof and set forth in the Price Determination Agreement,
the number of Firm Units (subject to such adjustments to eliminate fractional
units as UBS Warburg on behalf of the Representatives may determine) which bears
the same proportion to the total number of Firm Units to be sold by the
Partnership as the number of Firm Units set forth opposite the name of such
Underwriter in Schedule 1 bears to the total number of Firm Units, plus such
additional number of Firm Units which such Underwriter may become obligated to
purchase pursuant to Section 8 hereof. Schedule 1 may be attached to the Price
Determination Agreement.
(b) Subject to all the terms and conditions of this Agreement, the
Partnership grants the Option to the Underwriters to purchase, severally and not
jointly, up to 487,500 Option Units from the Partnership at the same price per
Option Unit as the Underwriters shall pay for each of the Firm Units. The Option
may be exercised only to cover over-allotments in the sale of the Firm Units by
the Underwriters and may be exercised in whole or in part at any time (but not
more than once) on or before the 30th day after the date of this Agreement (or,
if the Partnership has elected to rely on Rule 430A of the Securities Act of
1933, as amended (the "Act"), on or before the 30th day after the date of the
Price Determination Agreement), upon written or telegraphic notice (the "Option
Units Notice") by UBS Warburg on behalf of the Representatives to the
Partnership no later than 12:00 noon, New York City time, at least two and no
more than five business days before the date specified for closing in the Option
Units Notice (the "Option Closing Date") setting forth the aggregate number of
Option Units to be purchased and the time and date for such purchase. On the
Option Closing Date, the Partnership will sell to the Underwriters the number of
Option Units set forth in the Option Units Notice, and each Underwriter will
purchase such percentage of the Option Units as is equal to the percentage of
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Firm Units that such Underwriter is purchasing, as adjusted by UBS Warburg on
behalf of the Representatives in such manner as it deems advisable to avoid
fractional units.
(c) The initial public offering price per Firm Unit and the purchase
price per Firm Unit to be paid by the several Underwriters shall be agreed upon
and set forth in the Price Determination Agreement, if the Partnership has
elected to rely on Rule 430A.
(d) If the Partnership has elected not to rely on Rule 430A, the
initial public offering price per Firm Unit and the purchase price per Firm Unit
to be paid by the several Underwriters shall be agreed upon and set forth in the
Price Determination Agreement, which shall be dated the date hereof, and an
amendment to the Registration Statement containing such per unit price
information shall be filed before the Registration Statement becomes effective.
Section 2. Delivery and Payment.
Delivery of the Firm Units shall be made through the facilities of the
Depository Trust Company, New York, New York ("DTC") for the accounts designated
by UBS Warburg against payment of the purchase price by wire transfer of Federal
Funds or similar same day funds to an account designated in writing by the
Partnership to UBS Warburg at least one business day prior to the Closing Date
(as hereinafter defined). Such payment shall be made at 10:00 a.m., New York
City time, at the office of Xxxxxxxx Xxxxx Xxxxxxxx Xxxx & Ballon LLP, 000 Xxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, on the third business day (or fourth business
day, if the Price Determination Agreement is executed after 4:30 p.m.) after the
date on which the first bona fide offering of the Units to the public is made by
the Underwriters or at such time on such other date, not later than ten business
days after such date, as may be agreed upon by the Partnership and UBS Warburg
on behalf of the Representatives (such date is hereinafter referred to as the
"Closing Date").
To the extent the Option is exercised, delivery of the Option Units
against payment by the Underwriters (in the manner specified above) will take
place at the offices specified above for the Closing Date at the time and date
(which may be the Closing Date) specified in the Option Units Notice.
The cost of original issue tax stamps, if any, in connection with the
issuance and delivery of the Firm Units and Option Units by the Partnership to
the respective Underwriters shall be borne by the Partnership. The Partnership
will pay and save each Underwriter and any subsequent holder of the Units
harmless from any and all liabilities with respect to or resulting from any
failure or delay in paying federal and state stamp and other transfer taxes, if
any, which may be payable or determined to be payable in connection with the
original issuance or sale to such Underwriter of the Firm Units and Option
Units.
Section 3. Representations and Warranties.
Each of the Star Parties, jointly and severally, represents, warrants
and covenants to each Underwriter that:
(a) The Partnership meets the requirements for use of Form S-3, and a
registration statement (Registration No. 333-57994) on Form S-3, including any
amendments to such
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registration statement as may have been required to the date of this Agreement,
has been prepared by the Partnership under the provisions of the Act, and the
rules and regulations (collectively referred to as the "Rules and Regulations")
of the Securities and Exchange Commission (the "Commission") thereunder, and has
been filed with the Commission. Such registration statement (Registration No.
333-57994) on Form S-3 became effective on April 27, 2001 (the "Effective
Date"). Copies of such registration statement and any amendments thereto have
been delivered to the Representatives. The term "Registration Statement" means
the registration statement as amended at the Effective Date, including all
financial statements and exhibits and all documents and information included or
incorporated or deemed incorporated therein by reference, as from time to time
amended or supplemented pursuant to the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), Rule 430A and Rule 434 of the Rules and
Regulations, or otherwise, and any other registration statement filed under Rule
462 of the Rules and Regulations as such registration statement may be amended
from time to time.
(b) The term "Prospectus" means the prospectus constituting a part of
the Registration Statement and any amendments or supplements to such prospectus,
including without limitation the prospectus supplement prepared in connection
with the proposed sale of Units contemplated by this Agreement (the "Prospectus
Supplement"), through the date of such Prospectus Supplement; provided, however,
that if any revised prospectus or prospectus supplement shall be provided to the
Underwriters by the Partnership for use in connection with the offering of the
Units that differs from the Prospectus or the Prospectus Supplement (whether or
not such revised prospectus or prospectus supplement is required to be filed by
the Partnership with the commission pursuant to Rule 424(b) of the Rules and
Regulations), the term "Prospectus" shall refer to such revised prospectus or
prospectus supplement, as the case may be, from and after the time it is first
provided to the Underwriters for such use. Any reference herein to the
Registration Statement or the Prospectus shall be deemed to refer to and include
the documents incorporated by reference therein pursuant to Item 12 of Form S-3
which were filed under the Exchange Act, on or before the date hereof or are so
filed hereafter. Any reference herein to the terms "amend," "amendment" or
"supplement" with respect to the Registration Statement or the Prospectus shall
be deemed to refer to and include any such documents filed or to be filed under
the Exchange Act after the Effective Date, or the date of the Prospectus, as the
case may be, and deemed to be incorporated therein by reference. On the
Effective Date, the date the Prospectus was first filed with the Commission
pursuant to Rule 424(b) (if required), at all times subsequent to and including
the Closing Date and, if later, the Option Closing Date and when any post-
effective amendment to the Registration Statement becomes effective or any
amendment or supplement to the Prospectus is filed with the Commission, the
Registration Statement and the Prospectus (as amended or as supplemented),
including the financial statements included or incorporated by reference in the
Prospectus, did or will comply with all applicable provisions of the Act, the
Exchange Act, the rules and regulations thereunder (the "Exchange Act Rules and
Regulations") and the Rules and Regulations and will contain all statements
required to be stated therein in accordance with the Act, the Exchange Act, the
Exchange Act Rules and Regulations and the Rules and Regulations. On the
Effective Date and when any post-effective amendment to the Registration
Statement becomes effective, no part of the Registration Statement or any such
amendment did or will contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to
make the statements therein not misleading. At the Effective Date, the date the
Prospectus or any amendment or supplement to the Prospectus is filed with the
Commission and at the Closing
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Date and, if later, the Option Closing Date, the Prospectus did not or will not
contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. In addition, each of the statements
made in such documents within the coverage of Rule 175(b) of the Rules and
Regulations, including (but not limited to) any statements with respect to the
anticipated ratio of taxable income to distributions, was made or will be made
by the Partnership or the General Partner, as the case may be, with a reasonable
basis and in good faith. The foregoing representations and warranties in this
Section 3(b) do not apply to any statements or omissions made in reliance on and
in conformity with information relating to any Underwriter furnished in writing
to the Partnership by the Representatives specifically for inclusion in the
Registration Statement or Prospectus or any amendment or supplement thereto.
The Partnership has not distributed any offering material in connection
with the offering or sale of the Units other than the Registration Statement,
the Prospectus or any other materials, if any, permitted by the Act.
(c) The documents which are incorporated by reference in the Prospectus
or from which information is so incorporated by reference, when they become
effective or were filed with the Commission, as the case may be, complied in all
material respects with the requirements of the Act or the Exchange Act, as
applicable, the Exchange Act Rules and Regulations and the Rules and
Regulations; and any document so filed and incorporated by reference subsequent
to the Effective Date shall, when filed with the Commission, conform in all
material respects with the requirements of the Act and the Exchange Act, as
applicable, the Exchange Act Rules and Regulations and the Rules and
Regulations.
(d) Each of the Partnership and the Operating Partnership has been duly
formed and is validly existing and in good standing as a limited partnership
under the Delaware Revised Uniform Limited Partnership Act (the "Delaware Act"),
with all necessary partnership power and authority to own or lease its
properties and conduct its business, in each case as described in the
Prospectus. Each of the Partnership and the Operating Partnership is duly
qualified or registered as a foreign limited partnership for the transaction of
business under the laws of each jurisdiction in which the character of the
business conducted by it or the location of the properties owned or leased by it
make such qualification or registration necessary (except where the failure to
so qualify or register would not have a material adverse effect on the condition
(financial or other), results of operations or business of the Star Entities,
taken as a whole, or subject the Partnership or the limited partners of the
Partnership to any material liability or disability).
(e) Each Principal Subsidiary has been duly incorporated and is validly
existing in good standing as a corporation under the laws of the jurisdiction of
its incorporation, with all necessary corporate power and authority to own or
lease its properties and conduct its business, in each case as described in the
Prospectus. Each of the Principal Subsidiaries is duly qualified or registered
as a foreign corporation for the transaction of business under the laws of each
jurisdiction in which the character of the business conducted by it or the
location of the properties owned or leased by it makes such qualification or
registration necessary (except where the failure to so qualify or register would
not have a material adverse effect on the condition (financial or other),
results of operations or business of the Star Entities, taken as a whole, or
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subject the Partnership or the limited partners of the Partnership to any
material liability or disability).
(f) All of the outstanding shares of capital stock or other capital
interests of the Principal Subsidiaries (except for TG&E, Total Gas &
Electricity (PA), Inc. and TG&E Service Company, Inc.) have been duly authorized
and validly issued and are fully paid and non-assessable and are owned (directly
or indirectly) by the Partnership free and clear of all liens, encumbrances and
claims except for liens, encumbrances or claims against the Operating
Partnership, a 99.99% limited partner interest of which is owned by the
Partnership and a 0.01% general partner interest of which is owned by the
General Partner, as described in the Registration Statement. Except for the
units or stock of the Principal Subsidiaries, and the Xxxxxx Entities at the
Closing Date, and as disclosed in the Registration Statement or as set forth on
Schedule 3 hereto, the Partnership does not own, and at the Closing Date will
not own, directly or indirectly, any equity or long-term debt securities of any
corporation, firm, partnership, joint venture, association or other entity.
Complete and correct copies of the certificate of incorporation and by-laws or
other equivalent agreements for each of the Star Parties and the Principal
Subsidiaries and all amendments thereto have been delivered to the
Representatives, and no changes therein will be made subsequent to the date
hereof and prior to the Closing Date or, if later, the Option Closing Date.
(g) The Partnership owns 300,000 shares, $1.00 par value per share, of
Common Stock, or 72.73% of the common equity interests, of TG&E. The Partnership
also owns 30,000 shares of Series B preferred stock of TG&E having a $1.67 per
share non-cumulative preferred dividend and a $100.00 per share liquidation
preference. Such shares have been duly authorized and validly issued and are
fully paid and non-assessable and are owned directly by the Partnership free and
clear of all liens, encumbrances, security interests, charges and claims (other
than the interest created by the pledge by the Partnership to Bank of America of
its TG&E shares as collateral for TG&E's bank credit facilities).
(h) TG&E owns all of the shares of Common Stock of each of Total Gas &
Electricity (PA), Inc. and TG&E Service Company, Inc. Such shares have been duly
authorized and validly issued and are fully paid and non-assessable and are
owned directly by TG&E free and clear of all liens, encumbrances, security
interests, charges and claims (other the general security interest created by
TG&E's bank credit facilities).
(i) At the Closing Date (after giving effect to the concurrent closings
of the offering of Firm Units contemplated herein and the sale of $103 million
principal amount of senior notes of the Partnership to institutional purchasers
(the "Note Purchase")), Xxxxxx X.X. will be a wholly-owned subsidiary of Petro,
Inc., which is a wholly-owned subsidiary of Petro, and will own all of the
outstanding shares of capital stock of each of Xxxxxx Inc. and Blueray and 90%
of the outstanding shares of capital stock of Region Oil. All of the outstanding
units representing partnership interests in Xxxxxx X.X. have been duly
authorized and validly issued and are fully paid and non-assessable and, at the
Closing Date, will be owned directly and indirectly by Petro, Inc. free and
clear of all liens, encumbrances and claims. All of the outstanding shares of
capital stock of Xxxxxx Inc., Blueray and Region Oil have been duly authorized
and validly issued and are fully paid and non-assessable and, at the Closing
Date, will be owned by Xxxxxx X.X. free and clear of all liens, encumbrances and
claims.
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(j) The General Partner has been duly organized and is validly existing
in good standing as a limited liability company under the laws of the State of
Delaware. The General Partner has all necessary power and authority to own or
lease its properties and conduct its business and to act as general partner of
the Partnership and the Operating Partnership, in each case as described in the
Registration Statement, and the General Partner is duly qualified or registered
as a foreign entity for the transaction of business and is in good standing
under the laws of each jurisdiction in which the character of the business
conducted by it or the location of the properties owned or leased by it make
such qualification or registration necessary (except where the failure to so
qualify or register would not have a material adverse effect on the condition
(financial or other), results of operations or business of the General Partner,
or subject the General Partner, the Partnership or the limited partners of the
Partnership to any material liability or disability).
(k) The General Partner is the sole general partner of the Partnership
with a 1.99% general partner interest in the Partnership; such general partner
interest has been duly authorized by the Partnership Agreement, as amended
through the Closing Date, and is validly issued to the General Partner; and the
General Partner owns such general partner interest free and clear of all liens,
encumbrances, security interests, equities, charges or claims (except for such
liens, encumbrances, security interests, equities, charges or claims as are not,
individually or in the aggregate, material) other than those created by or
arising under the Delaware Act, the Operating Partnership's bank credit
facilities (the "Bank Credit Facilities") or the First Mortgage Note Agreement
between the General Partner and various institutional investors (the "First
Mortgage Note Agreement").
The Partnership owns its limited partner interest in the Operating
Partnership free and clear of all liens, encumbrances, security interests,
equities, charges or claims (except for such liens, encumbrances, security
interests, equities, charges or claims as are not, individually or in the
aggregate, material) other than those created by or arising under the Delaware
Act, the Bank Credit Facilities or the First Mortgage Note Agreement.
(l) The General Partner is the sole general partner of the Operating
Partnership with a 0.01% general partner interest in the Operating Partnership;
such general partner interest has been duly authorized by the Agreement of
Limited Partnership of the Operating Partnership as amended through the Closing
Date (the "Operating Partnership Agreement" and, together with the Partnership
Agreement, the "Partnership Agreements") and has been validly issued to the
General Partner; and the General Partner owns such general partner interest free
and clear of all liens, encumbrances, security interests, equities, charges or
claims (except for such liens, encumbrances, security interests, equities,
charges or claims as are not, individually or in the aggregate, material) other
than those created by or arising under the Delaware Act, the Bank Credit
Facilities or the First Mortgage Note Agreement.
(m) All of the issued and outstanding member interests of the General
Partner are duly authorized and have been validly issued, and are fully paid and
nonassessable, and Xxxx X. Xxxxx, Xxxxxx X. Xxxxx and Hanseatic Americas Inc.
(the "LLC Owners") own all such outstanding membership interests of the General
Partner free and clear of all liens, encumbrances, security interests, equities,
charges or claims (except for such liens, encumbrances, security interests,
equities, charges or claims as are not, individually or in the aggregate,
material) other than those
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created by or arising under that certain $37.5 million line of credit extended
by MM Warbourg Bank Luxembourg to Hanseatic Americas Inc. dated December 1,
1999.
(n) At the Closing Date, after giving effect to the issuance of Firm
Units but not any Option Units, the capitalization of the Partnership will
consist of 22,974,967 Common Units, 2,696,946 Senior Subordinated Units, 345,364
Junior Subordinated Units and 325,729 General Partner Units. The outstanding
Common Units and Senior Subordinated Units and the limited partner interests
represented thereby have been, and the Units to be issued and sold by the
Partnership under this Agreement upon such issuance will be, duly authorized,
validly issued, fully paid and nonassessable and will not be subject to any
preemptive or similar right. The description of the Common Units in the
Registration Statement and the Prospectus is, and at the Closing Date will be,
complete and accurate in all respects. Except as set forth in the Prospectus,
the Partnership does not have outstanding, and at the Closing Date will not have
outstanding, any options to purchase, or any rights or warrants to subscribe
for, or any securities or obligations convertible into, or any contracts or
commitments to issue or sell, any Common Units or other partnership interests,
any capital stock or partnership interests of any Subsidiary or any such
warrants, convertible securities or obligations. Except as described in the
Prospectus, there are no preemptive rights or other rights to subscribe for or
to purchase, nor any restriction upon the voting or transfer of, any limited
partner interests in the Partnership.
(o) The LLC Owners own all outstanding Junior Subordinated Units; all
of such Junior Subordinated Units and the limited partner interests represented
thereby have been duly authorized and validly issued in accordance with the
Partnership Agreement and are fully paid (to the extent required under the
Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by Section 17-607 of the Delaware Act); and each of the LLC Owners owns
its Junior Subordinated Units free and clear of all liens, encumbrances,
security interests, equities, charges or claims (except for such liens,
encumbrances, security interests, equities, charges or claims as are not,
individually or in the aggregate, material) other than those created by or
arising under that certain $37.5 million line of credit extended by MM Warbourg
Bank Luxembourg to Hanseatic Corporation and Hanseatic Americas Inc. dated
December 1, 1999.
(p) The Partnership does not have any subsidiaries (other than the
Operating Partnership or any Principal Subsidiary) which, individually or
considered as a whole, would be deemed to be a significant subsidiary (as
defined in Rule 405 under the Act).
(q) The Units, when issued and delivered against payment therefor as
provided herein, will conform to the description thereof contained in the
Prospectus. The Partnership has all requisite power and authority to issue, sell
and deliver the Units, in accordance with and upon the terms and conditions set
forth in this Agreement, the Partnership Agreement and the Prospectus. At the
Closing Date and the Option Closing Date, all partnership and limited liability
company action, as the case may be, required to be taken by the Partnership or
the General Partner or any of their partners or members for the authorization,
issuance, sale and delivery of the Units shall have been validly taken.
(r) The financial statements and schedules included or incorporated by
reference in the Registration Statement or the Prospectus present fairly the
consolidated financial condition of
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the Star Entities and the Xxxxxx Entities as of the respective dates thereof and
the consolidated results of operations and cash flows of the Star Entities and
the Xxxxxx Entities for the respective periods covered thereby, all in
conformity with generally accepted accounting principles ("GAAP") applied on a
consistent basis throughout the entire period involved, except as otherwise
disclosed in the Prospectus. The pro forma financial statements and other pro
forma financial information included or incorporated by reference in the
Registration Statement or the Prospectus (including, without limitation, the pro
forma financial statements relating to the acquisition of the entire direct and
indirect equity interests in the Xxxxxx Entities, pursuant to the Equity
Purchase Agreement, dated as of July 31, 2001, by and among Petro, Inc. and the
Sellers signatory thereto (the "Xxxxxx Acquisition")) (i) present fairly in all
material respects the information shown therein, (ii) have been prepared in
accordance with the Commission's rules and guidelines with respect to pro forma
financial statements and (iii) have been properly computed on the bases
described therein. The assumptions used in the preparation of the pro forma
financial statements and other pro forma financial information included in the
Registration Statement or the Prospectus are reasonable and the adjustments used
therein are appropriate to give effect to the transactions or circumstances
referred to therein. No other financial statements or schedules of the
Partnership are required by the Act, the Exchange Act, the Exchange Act Rules
and Regulations or the Rules and Regulations to be included in the Registration
Statement or the Prospectus. KPMG LLP (the "Accountants"), who have reported on
such financial statements and schedules, are independent accountants with
respect to each of the Star Entities as required by the Act and the Rules and
Regulations. The statements included in the Registration Statement with respect
to the Accountants pursuant to Rule 509 of Regulation S-K of the Rules and
Regulations are true and correct in all material respects.
(s) Each of the Star Entities and the Xxxxxx Entities maintains a
system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management's
general or specific authorization; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain accountability for assets; (iii)
access to assets is permitted only in accordance with management's general or
specific authorization; and (iv) the recorded accountability for assets is
compared with existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.
(t) Subsequent to the respective dates as of which information is given
in the Registration Statement and the Prospectus and prior to the Closing Date,
except as set forth in or contemplated by the Registration Statement and the
Prospectus, (i) there has not been and will not have been any change in the
capitalization of any of the Star Entities, or in the business, properties,
business prospects, condition (financial or otherwise) or results of operations
of any of the Star Entities, arising for any reason whatsoever, (ii) none of the
Star Entities has incurred nor will it incur any material liabilities or
obligations, direct or contingent, except liabilities incurred in the ordinary
course of business and consistent with past practices, nor has it entered into
nor will it enter into any material transactions other than pursuant to this
Agreement and the transactions referred to herein and (iii) the Partnership has
not and will not have paid or declared any dividends or other distributions of
any kind on any class of its partnership units.
(u) None of the Star Entities or the Xxxxxx Entities are, or as of the
Closing Date, as a result of any of the transactions described under "Recent
Developments" in the Prospectus
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Supplement or as a result of the applications of net proceeds from this offering
as contemplated in the Prospectus Supplement under "Use of Proceeds," will be,
(i) a "holding company" or a "subsidiary company" of a "holding company" or an
"affiliate" thereof, within the meaning of the Public Utility Holding Company
Act of 1935, as amended, or (ii) an "investment company," a company "controlled
by" an "investment company" or an "affiliated person" of, or "promoter" or
"principal underwriter" for, an "investment company," as such terms are defined
in the Investment Company Act of 1940, as amended, and the rules and regulations
thereunder.
(v) Except as set forth in the Registration Statement and the
Prospectus, there are no actions, suits or proceedings pending, or to the
knowledge of the Star Entities or the Xxxxxx Entities, threatened against or
affecting any of the Star Entities or the Xxxxxx Entities or any of their
respective directors or officers in their capacity as such, before or by any
federal or state court, commission, regulatory body, administrative agency or
other governmental body, domestic or foreign, wherein an unfavorable ruling,
decision or finding might materially and adversely affect any of the Star
Entities or the Xxxxxx Entities or their business, properties, business
prospects, condition (financial or otherwise) or results of operations.
(w) Each of the Star Entities and the Xxxxxx Entities has, and at the
Closing Date will have, (i) all governmental licenses, permits, consents,
orders, approvals and other authorizations necessary to carry on its business as
contemplated in the Prospectus, (ii) complied in all respects with all laws,
regulations and orders applicable to it or its business, except where the
failure to so comply would not have a material adverse effect on the Star
Entities or the Xxxxxx Entities, taken as a whole, and (iii) performed all its
obligations required to be performed by it, and is not, and at the Closing Date
will not be, in default, under any indenture, mortgage, deed of trust, voting
trust agreement, loan agreement, bond, debenture, note agreement, lease,
contract or other agreement or instrument (collectively, a "contract or other
agreement") to which it is a party or by which its property is bound or
affected. To the best knowledge of the Star Parties, no other party under any
contract or other agreement to which it is a party is in default in any material
respect thereunder. None of the Star Entities or the Xxxxxx Entities are, nor at
the Closing Date will any of them be, in violation of any provision of its
Partnership Agreement, Operating Agreement or certificate of incorporation or
by-laws, as the case may be.
(x) No consent, approval, authorization or order of, or any filing or
declaration with, any court or governmental agency or body is required in
connection with the authorization, issuance, transfer, sale or delivery of the
Units by the Partnership, in connection with the execution, delivery and
performance of this Agreement and the Price Determination Agreement by the Star
Parties, or in connection with the taking by the Star Parties of any action
contemplated hereby, except such as have been obtained under the Act or the
Rules and Regulations and such as may be required under state securities or Blue
Sky laws or the by-laws and rules of the National Association of Securities
Dealers, Inc. (the "NASD") in connection with the purchase and distribution by
the Underwriters of the Units.
(y) The Star Parties have full power and authority to enter into this
Agreement. This Agreement has been duly authorized, executed and delivered by
the Star Parties and constitutes a valid and binding agreement of the Star
Parties and is enforceable against the Star Parties in accordance with the terms
hereof; provided that the enforceability hereof may be limited by bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium, or similar laws
10
relating to or affecting creditors' rights generally and by general equitable
principals (regardless of whether such enforceability is considered in a
proceeding in equity or at law). The performance of this Agreement, the
consummation of the transactions contemplated hereby and the application of the
net proceeds from the offering and sale of the Units in the manner set forth in
the Prospectus and the Prospectus Supplement under "Use of Proceeds" will not
result in the creation or imposition of any lien, charge or encumbrance upon any
of the assets of any of the Star Entities pursuant to the terms or provisions
of, or result in a breach or violation of any of the terms or provisions of, or
constitute a default under, or give any other party a right to terminate any of
its obligations under, or result in the acceleration of any obligation under,
the Partnership Agreement of the Partnership or certificate of incorporation,
by-laws, operating agreement, partnership agreement or other governing document,
as the case may be, of any of the Star Entities, any contract or other agreement
to which any of the Star Entities is a party or by which any of the Star
Entities or any of their respective properties is bound or affected, or violate
or conflict with any judgment, ruling, decree, order, statute, rule or
regulation of any court or other governmental agency or body applicable to the
business or properties of any of the Star Entities.
(z) The Partnership Agreement, as amended as of the Closing Date, is
duly authorized, executed and delivered by the General Partner and is a valid
and legally binding agreement of the General Partner, enforceable against the
General Partner in accordance with its terms; the Operating Partnership
Agreement, as amended as of the Closing Date, is duly authorized executed and
delivered by the General Partner and the Partnership and is a valid and legally
binding agreement of the General Partner and the Partnership, enforceable
against the General Partner and the Partnership in accordance with its terms;
provided that, with respect to both agreements described in this paragraph (y),
the enforceability thereof may by limited by bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium, or similar laws relating to
or affecting creditors' right generally and by general equitable principles
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).
(aa) Each of the Star Entities and the Xxxxxx Entities has good and
marketable title to all properties and assets described in the Prospectus as
owned by it, free and clear of all liens, charges, encumbrances or restrictions,
except such as are described in the Prospectus or are not material to the
business of the Star Entities or the Xxxxxx Entities. Each of the Star Entities
and the Xxxxxx Entities has valid, subsisting and enforceable leases for the
properties described in the Prospectus as leased by it, with such exceptions as
are not material and do not materially interfere with the use made and proposed
to be made of such properties by the Star Entities or the Xxxxxx Entities.
(bb) There is no document or contract of a character required to be
described in the Registration Statement or the Prospectus or to be filed as an
exhibit to the Registration Statement which is not described or filed as
required. All such contracts to which any of the Star Entities and the Xxxxxx
Entities is a party have been duly authorized, executed and delivered by such
Star Entity or Xxxxxx Entity, constitute valid and binding agreements of such
Star Entity or Xxxxxx Entity and are enforceable against such Star Entity or
Xxxxxx Entity in accordance with the terms thereof.
11
(cc) No statement, representation, warranty or covenant made by a Star
Party in this Agreement or made in any certificate or document required by this
Agreement to be delivered to the Representatives was or will be, when made,
inaccurate, untrue or incorrect.
(dd) None of the Star Entities nor the directors, officers or
controlling persons of any such entity have taken, directly or indirectly, any
action intended, or which might reasonably be expected, to cause or result,
under the Act or otherwise, in, or which has constituted, stabilization or
manipulation of the price of any security of the Partnership to facilitate the
sale or resale of the Units.
(ee) Except as disclosed on Schedule 2 hereto, no person or entity has
the right to require the registration under the Act of Common Units or other
securities of any Star Entity by reason of the filing or effectiveness of the
Registration Statement.
(ff) The Units have been approved for listing on the New York Stock
Exchange ("NYSE"), subject only to official notice of issuance.
(gg) The Star Entities and the Xxxxxx Entities are in compliance in all
material respects with all federal, state and local employment and labor laws,
including, but not limited to, laws relating to non-discrimination in hiring,
promotion and pay of employees; no labor dispute with the employees of such
entities exists or, to the knowledge of the Star Parties, is imminent or
threatened; and the Star Parties are not aware of any existing, imminent or
threatened labor disturbance by the employees of any principal suppliers,
manufacturers or contractors of the Star Entities and the Xxxxxx Entities that
could result in a material adverse effect on the condition (financial or
otherwise) or on the earnings, business, properties, business prospects or
operations of the Star Entities or the Xxxxxx Entities, taken as a whole.
(hh) The Star Entities and the Xxxxxx Entities own, or are licensed or
otherwise have the full exclusive right to use or will be licensed or otherwise
will have full exclusive right to use, the material patents, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems
or procedures), trademarks, services marks and trade names (collectively,
"patent and proprietary rights") presently employed by them or which are
necessary in connection with the conduct of the business now operated by them as
set forth in the Registration Statement and the Prospectus and none of the Star
Entities or the Xxxxxx Entities have received any written notice or otherwise
have actual knowledge of any infringement of or conflict with asserted rights of
others or any other claims with respect to any patent or proprietary rights, or
of any basis for rendering any patent and proprietary rights invalid or
inadequate to protect the interest of such Star Entity or Xxxxxx Entity.
(ii) None of the Star Entities or the Xxxxxx Entities, nor, to the Star
Parties' knowledge, any employee or agent of such Star Entity or Xxxxxx Entity
has made any payment of funds of the Star Entity or Xxxxxx Entity or received or
retained any funds in violation of any law, rule or regulation or of a character
required to be disclosed in the Prospectus. The Partnership has complied, and
until the completion of the distribution of the Units will comply, with all of
the provisions of (including, without limitation, filing all forms required by)
Section
12
517.075 of the Florida Securities and Investor Protection Act and Regulation 3E-
900.001 issued thereunder with respect to the offering and sale of the Units.
(jj) The Star Entities and the Xxxxxx Entities (i) are in compliance
with any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety, the
environment or imposing liability or standards of conduct concerning any
Hazardous Material (as hereinafter defined) ("Environmental Laws"), (ii) have
received all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses and (iii)
are in compliance with all terms and conditions of any such permit, license or
approval, except where such noncompliance with Environmental Laws, failure to
receive required permits, licenses or other approvals or failure to comply with
the terms and conditions of such permits, licenses or approvals would not,
individually or in the aggregate result in a material adverse effect on the
condition (financial or otherwise) or on the earnings, business, properties,
business prospects or operations of the Star Entities or the Xxxxxx Entities,
taken as a whole. The term "Hazardous Material" means (A) any "hazardous
substance" as defined by the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, (B) any "hazardous waste" as defined by
the Resource Conservation and Recovery Act, as amended, (C) any petroleum or
petroleum product, (D) any polychlorinated biphenyl and (E) any pollutant or
contaminant or hazardous, dangerous, or toxic chemical, material, waste or
substance regulated under or within the meaning of any other Environmental Law.
(kk) Each of the Star Entities and the Xxxxxx Entities maintains
insurance with respect to its properties and business of the types and in
amounts generally deemed adequate for its business and consistent with insurance
coverage maintained by similar companies and businesses, all of which insurance
is in full force and effect.
(ll) Each of the Star Entities and the Xxxxxx Entities has filed all
material federal, state and foreign income and franchise tax returns and has
paid all taxes shown as due thereon, other than taxes which are being contested
in good faith and for which adequate reserves have been established in
accordance with GAAP; and none of the Star Entities or the Xxxxxx Entities has
knowledge of any tax deficiency which has been or might be asserted or
threatened against any such entity. There are no tax returns of any Star Entity
or Xxxxxx Entity that are currently being audited by state, local or federal
taxing authorities or agencies (and with respect to which any such entity has
received notice), where the findings of such audit, if adversely determined,
would result in a material adverse effect on the condition (financial or
otherwise) or on the earnings, business, properties, business prospects or
operations of the Star Entities or the Xxxxxx Entities, taken as a whole.
(mm) With respect to each employee benefit plan, program and arrangement
(including, without limitation, any "employee benefit plan" as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")) maintained or contributed to by any Star Entity or Xxxxxx Entity, or
with respect to which any Star Entity or Xxxxxx Entity could incur any liability
under ERISA (collectively, the "Benefit Plans"), no event has occurred and, to
the best knowledge of any of the Star Entities and the Xxxxxx Entities, there
exists no condition or set of circumstances, in connection with which any such
entity could be subject to any liability under the terms of such Benefit Plan,
applicable law (including, without limitation,
13
ERISA and the Internal Revenue Code of 1986, as amended) or any applicable
agreement that could materially adversely affect the business, properties,
business prospects, condition (financial or otherwise) or results of operations
of the Star Entities or the Xxxxxx Entities, taken as a whole.
Section 4. Agreements of the Partnership.
The Partnership agrees with the Underwriters as follows:
(a) The Partnership will not, during such period as the Prospectus is
required by law to be delivered in connection with sales of the Units by an
Underwriter or dealer, file any amendment or supplement to the Registration
Statement or the Prospectus, unless a copy thereof shall first have been
submitted to the Representatives within a reasonable period of time prior to the
filing thereof and the Representatives shall not have objected thereto in good
faith.
(b) The Partnership will notify the Representatives promptly, and will
confirm such notice in writing, (1) of any request by the Commission for
amendments or supplements to the Registration Statement or the Prospectus or for
additional information, (2) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose or the threat thereof, (3) of the happening of
any event during the period mentioned in the second sentence of Section 4(e)
that in the judgment of the Partnership makes any statement made in the
Registration Statement or the Prospectus untrue or that requires the making of
any changes in the Registration Statement or the Prospectus in order to make the
statements therein, in light of the circumstances in which they are made, not
misleading and (4) of receipt by any of the Star Parties or any representative
or attorney of the Star Parties of any other communication from the Commission
relating to the Partnership, the Registration Statement or the Prospectus. If at
any time the Commission shall issue any order suspending the effectiveness of
the Registration Statement, the Partnership will make every reasonable effort to
obtain the withdrawal of such order at the earliest possible moment. The
Partnership will use its best efforts to comply with the provisions of and make
all requisite filings with the Commission pursuant to Rule 430A and to notify
the Representatives promptly of all such filings.
(c) The Partnership will furnish to the Representatives, without
charge, two signed copies of each of the Registration Statement and of any post-
effective amendments thereto, including financial statements and schedules, and
all exhibits thereto (including any document filed under the Exchange Act and
deemed to be incorporated by reference into the Prospectus), and will furnish to
the Representatives, without charge, for transmittal to each of the other
Underwriters, a copy of each of the Registration Statement and any post-
effective amendments thereto, including financial statements and schedules but
without exhibits.
(d) The Partnership will comply with all the provisions of any
undertakings contained in the Registration Statement.
(e) The Partnership will deliver to each of the Underwriters, without
charge, as many copies of the Prospectus or any amendment or supplement thereto
as the Representatives may reasonably request. The Partnership consents to the
use of the Prospectus or any amendment or
14
supplement thereto by the Underwriters and by all dealers to whom the Units may
be sold, both in connection with the offering or sale of the Units and for any
period of time thereafter during which the Prospectus is required by law to be
delivered in connection therewith. If during such period of time any event shall
occur which in the judgment of the Partnership or counsel to the Underwriters
should be set forth in the Prospectus in order to make any statement therein, in
the light of the circumstances under which it was made, not misleading, or if it
is necessary to supplement or amend the Prospectus to comply with law, the
Partnership will forthwith prepare and duly file with the Commission an
appropriate supplement or amendment thereto, and will deliver to each of the
Underwriters, without charge, such number of copies thereof as the
Representatives may reasonably request. The Partnership shall not file any
document under the Exchange Act before the termination of the offering of the
Units by the Underwriters if such document would be deemed to be incorporated by
reference into the Prospectus which is not approved by UBS Warburg after
reasonable notice thereof.
(f) Prior to any public offering of the Units by the Underwriters, the
Partnership will cooperate with the Representatives and counsel to the
Underwriters in connection with the registration or qualification of the Units
for offer and sale under the securities or Blue Sky laws of such jurisdictions
as the Representatives may request; provided, that in no event shall the
Partnership be obligated to qualify to do business in any jurisdiction where it
is not now so qualified or to take any action which would subject it to general
service of process in any jurisdiction where it is not now so subject.
(g) During the period of five years commencing on the Effective Date,
the Partnership will furnish to the Representatives copies of such financial
statements and other periodic and special reports as the Partnership may from
time to time distribute generally to the holders of any class of its partnership
interests, and will furnish to the Representatives copies of each annual or
other report it shall be required to file with the Commission.
(h) The Partnership will make generally available to holders of its
securities as soon as may be practicable but in no event later than the last day
of the fifteenth full calendar month following the calendar quarter in which the
Effective Date falls, an earnings statement (which need not be audited but shall
be in reasonable detail) for a period of 12 months ended commencing after the
Effective Date, and satisfying the provisions of Section 11(a) of the Act
(including Rule 158 of the Rules and Regulations).
(i) Whether or not the transactions contemplated by this Agreement are
consummated or this Agreement is terminated, the Partnership will pay, or
reimburse if paid by the Representatives, all costs and expenses incident to the
performance of the obligations of the Partnership under this Agreement,
including but not limited to, costs and expenses of or relating to (1) the
preparation, printing and filing of the Registration Statement and exhibits to
it, the Prospectus and any amendment or supplement to the Registration Statement
or the Prospectus, (2) the preparation and delivery of certificates representing
the Units, (3) the word processing, printing and reproduction of this Agreement,
the Agreement Among Underwriters, any Dealer Agreements and any Underwriters'
Questionnaire, (4) furnishing (including costs of shipping, mailing and courier)
such copies of the Registration Statement and the Prospectus, and all amendments
and supplements thereto, as may be requested for use in connection with the
offering and sale of the Units by the Underwriters or by dealers to whom Units
may be sold, (5)
15
the listing of the Units on the NYSE, (6) any filings required to be made by the
Underwriters with the NASD, and the fees, disbursements and other charges of
counsel for the Underwriters in connection therewith, (7) the registration or
qualification of the Units for offer and sale under the securities or Blue Sky
laws of such jurisdictions designated pursuant to Section 4(f), including the
fees, disbursements and other charges of counsel to the Underwriters in
connection therewith, and the preparation and printing of preliminary,
supplemental and final Blue Sky memoranda, (8) counsel to the Partnership, (9)
the transfer agent for the Units and (10) the Accountants.
(j) If this Agreement shall be terminated by the Partnership pursuant
to any of the provisions hereof (otherwise than pursuant to Section 8) or if for
any reason the Partnership shall be unable to perform its obligations hereunder,
the Partnership will reimburse the Underwriters for all out-of-pocket expenses
(including the fees, disbursements and other charges of counsel to the
Underwriters) reasonably incurred by them in connection herewith .
(k) The Partnership will not at any time, directly or indirectly, take
any action intended, or which might reasonably be expected, to cause or result
in, or which will constitute, stabilization of the price of the Units to
facilitate the sale or resale of any of the Units.
(l) The Partnership will apply the net proceeds from the offering and
sale of the Units to be sold by the Partnership in the manner set forth in the
Prospectus and the Prospectus Supplement under "Use of Proceeds."
(m) During the period of 90 days commencing at the Closing Date, the
Star Parties will not, without the prior written consent of UBS Warburg,
directly or indirectly, contract to sell, offer to sell, distribute, grant any
option, right or warrant for the sale of, pledge, hypothecate or otherwise
dispose of, or file with the Commission a registration statement under the Act
relating to, any Common Units or securities convertible into, or exerciseable or
exchangeable for, Common Units or any other rights to acquire such Common Units,
or publicly disclose the intention to make any such offer, sale, pledge,
disposition or filing other than to the Underwriters pursuant to this Agreement
and other than pursuant to employee benefit plans as in existence as of the Date
hereof, provided, that the Partnership will not grant options to purchase Common
Units pursuant to such employee benefit plans at a price less than the public
offering price.
(n) The Partnership will not, and will cause each of its executive
officers, directors, and beneficial owners of more than 5% of the outstanding
Common Units to enter into agreements with the Representatives in the form set
forth in Exhibit B to the effect that they will not, for a period of 90 days
after the commencement of the public offering of the Units (the "Lock-up
Period"), without the prior written consent of UBS Warburg, directly or
indirectly, offer, pledge, sell, contract to sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase, or otherwise transfer or dispose of any Common Units or
rights to acquire Common Units or any security convertible into or exercisable
or exchangeable for Common Units (including, without limitation, Common Units
which may be deemed to be beneficially owned in accordance with the rules and
regulations of the Commission, but not including Senior Subordinated Units) or
enter into a transaction which would have the same effect, or enter into any
swap, hedge or other arrangement that transfers, in whole or in part, any of the
economic consequences of ownership of Common Units, or publicly disclose the
intention to make any such offer, sale, pledge or disposition other than, in the
case of
16
the Partnership, the Option Units (other than (i) pursuant to employee stock
option plans as in existence as of the date hereof or in connection with other
employee incentive compensation arrangements consistent with past practice, or
(ii) pursuant to or in connection with an acquisition by the Partnership
provided that any person receiving such Common Units in the acquisition will
also enter into an agreement with the Underwriters in substantially the same
form set forth in Exhibit B, in which such person will agree not to sell,
contract to sell or otherwise dispose of any Common Units or rights to acquire
such units for the remainder of the Lock-up Period).
Section 5. Conditions of the Obligations of the Underwriters.
In addition to the execution and delivery of the Price Determination
Agreement, the obligations of each Underwriter hereunder are subject to the
following conditions:
(a) Notification that the Registration Statement and all post-effective
amendments thereto have become effective shall be received by UBS Warburg not
later than 5:00 p.m., New York City time, on the date of this Agreement or at
such later date and time as shall be consented to in writing by UBS Warburg and
all filings required by Rule 424 of the Rules and Regulations and Rule 430A
shall have been made.
(b) (i) No stop order suspending the effectiveness of the Registration
Statement shall have been issued and no proceedings for that purpose shall be
pending or threatened by the Commission, (ii) no order suspending the
effectiveness of the Registration Statement or the qualification or registration
of the Units under the securities or Blue Sky laws of any jurisdiction shall be
in effect and no proceeding for such purpose shall be pending before or
threatened or contemplated by the Commission or the authorities of any such
jurisdiction, (iii) any request for additional information on the part of the
staff of the Commission or any such authorities shall have been complied with to
the satisfaction of the staff of the Commission or such authorities and (iv)
after the date hereof no amendment or supplement to the Registration Statement
or the Prospectus shall have been filed unless a copy thereof was first
submitted to UBS Warburg and UBS Warburg did not object thereto in good faith,
and UBS Warburg shall have received certificates, dated the Closing Date and the
Option Closing Date and signed by the Chief Executive Officer and Chief
Financial Officer of the General Partner (who may, as to proceedings threatened,
rely upon the best of their information and belief), to the effect of clauses
(i), (ii) and (iii).
(c) Since the respective dates as of which information is given in the
Registration Statement and the Prospectus, (i) there shall not have been, and no
development shall have occurred which could reasonably be expected to result in,
a material adverse change in the general affairs, business, business prospects,
properties, management, condition (financial or otherwise) or results of
operations of the Star Entities, taken as a whole, whether or not arising from
transactions in the ordinary course of business, in each case other than as set
forth in or contemplated by the Registration Statement and the Prospectus and
(ii) none of the Star Entities shall have sustained any material loss or
interference with its business or properties from fire, explosion, flood or
other casualty, whether or not covered by insurance, or from any labor dispute
or any court or legislative or other governmental action, order or decree, which
is not set forth in the Registration Statement and the Prospectus, if in the
judgment of UBS Warburg any
17
such development makes it impracticable or inadvisable to consummate the sale
and delivery of the Units by the Underwriters at the public offering price.
(d) Since the respective dates as of which information is given in the
Registration Statement and the Prospectus, there shall have been no litigation
or other proceeding instituted against any of the Star Entities or any of their
respective officers or directors in their capacities as such, before or by any
federal, state or local court, commission, regulatory body, administrative
agency or other governmental body, domestic or foreign, in which litigation or
proceeding an unfavorable ruling, decision or finding would materially and
adversely affect the business, properties, business prospects, condition
(financial or otherwise) or results of operations of the Star Entities taken as
a whole.
(e) Each of the representations and warranties of the Star Parties
contained herein shall be true and correct in all material respects (except for
those representations and warranties which are already qualified by materiality,
in which case such representations and warranties shall be true and correct in
all respects) at the Closing Date and, with respect to the Option Units, at the
Option Closing Date, as if made at the Closing Date and, with respect to the
Option Units, at the Option Closing Date, and all covenants and agreements
herein contained to be performed on the part of the Star Parties and all
conditions herein contained to be fulfilled or complied with by the Star Parties
at or prior to the Closing Date and, with respect to the Option Units, at or
prior to the Option Closing Date, shall have been duly performed, fulfilled or
complied with.
(f) The Representatives shall have received an opinion, dated the
Closing Date and, with respect to the Option Units, the Option Closing Date,
satisfactory in form and substance to counsel for the Underwriters, from
Xxxxxxxx Xxxxx Xxxxxxxx Xxxx & Ballon LLP, counsel to the Partnership, to the
effect set forth in Exhibit C.
(g) The Representatives shall have received an opinion, dated the
Closing Date and, with respect to the Option Units, the Option Closing Date,
from Xxxxxx & Xxxxxx, L.L.P., counsel to the Underwriters, with respect to the
Registration Statement, the Prospectus and this Agreement, which opinion shall
be satisfactory in all respects to the Representatives.
(h) On the date of the Prospectus, the Accountants shall have furnished
to the Representatives a letter, dated the date of its delivery, addressed to
the Representatives and in form and substance satisfactory to the
Representatives, confirming that they are independent accountants with respect
to the Partnership as required by the Act and the Rules and Regulations and with
respect to the financial and other statistical and numerical information
contained in the Registration Statement or incorporated by reference therein. At
the Closing Date and, as to the Option Units, the Option Closing Date, the
Accountants shall have furnished to the Representatives a letter, dated the date
of its delivery, which shall confirm, on the basis of a review in accordance
with the procedures set forth in the letter from the Accountants, that nothing
has come to their attention during the period from the date of the letter
referred to in the prior sentence to a Date (specified in the letter) not more
than five days prior to the Closing Date and the Option Closing Date which would
require any change in their letter dated the date of the Prospectus, if it were
required to be dated and delivered at the Closing Date and the Option Closing
Date.
18
(i) On or prior to the Closing Date, the Representatives shall have
received the executed agreements referred to in Section 4(m).
(j) At the Closing Date and, as to the Option Units, the Option Closing
Date, there shall be furnished to the Representatives an accurate certificate,
dated the date of its delivery, signed by each of the Chief Executive Officer
and the Chief Financial Officer of the General Partner, in form and substance
satisfactory to the Representatives, to the effect that:
(i) Each signer of such certificate has carefully examined the
Registration Statement and the Prospectus (including any documents filed
under the Exchange Act and deemed to be incorporated by reference into the
Prospectus) and (A) as of the date of such certificate, such documents are
true and correct in all material respects and do not omit to state a
material fact required to be stated therein or necessary in order to make
the statements therein not untrue or misleading and (B) since the Effective
Date, no event has occurred as a result of which it is necessary to amend
or supplement the Prospectus in order to make the statements therein not
untrue or misleading in any material respect and there has been no document
required to be filed under the Exchange Act and the Exchange Act Rules and
Regulations that upon such filing would be deemed to be incorporated by
reference into the Prospectus that has not been so filed;
(ii) Each of the representations and warranties of the Star
Parties contained in this Agreement were, when originally made, and are, at
the time such certificate is delivered, true and correct in all material
respects (except for those representations and warranties which are already
qualified by materiality, in which case such representations and warranties
are true and correct in all respects);
(iii) Each of the covenants required herein to be performed by the
Star Parties on or prior to the delivery of such certificate has been duly,
timely and fully performed and each condition herein required to be
complied with by the Star Parties on or prior to the date of such
certificate has been duly, timely and fully complied with; and
(iv) Since the respective dates as of which information is given
in the Registration Statement and the Prospectus, (A) there has not been,
and no development has occurred which could reasonably be expected to
result in, a material adverse change in the general affairs, business,
business prospects, properties, management, condition (financial or
otherwise) or results of operations of the Star Entities or Xxxxxx Entities
taken as a whole, whether or not arising from transactions in the ordinary
course of business, in each case other than as set forth in or contemplated
by the Registration Statement and the Prospectus and (B) none of the Star
Entities or the Xxxxxx Entities have sustained any material loss or
interference with its business or properties from fire, explosion, flood or
other casualty, whether or not covered by insurance, or from any labor
dispute or any court, legislative, administrative, regulatory or other
governmental action, investigation, order or decree, which is not set forth
in the Registration Statement and the Prospectus;
and such other matters as the Representatives may reasonably request.
19
(k) The Units shall be qualified for sale in such states as the
Representatives may reasonably request, each such qualification shall be in
effect and not subject to any stop order or other proceeding on the Closing Date
and the Option Closing Date.
(l) Prior to the Closing Date, the Units shall have been duly
authorized for listing on NYSE upon official notice of issuance.
(m) The Partnership shall have furnished to the Representatives such
certificates, in addition to those specifically mentioned herein, as the
Representatives may have reasonably requested as to the accuracy and
completeness at the Closing Date and the Option Closing Date of any statement in
the Registration Statement or the Prospectus or any documents filed under the
Exchange Act and deemed to be incorporated by reference into the Prospectus, as
to the accuracy at the Closing Date and the Option Closing Date of the
representations and warranties of the Star Parties herein, as to the performance
by the Star Parties of their obligations hereunder, or as to the fulfillment of
the conditions concurrent and precedent to the obligations hereunder of the
Underwriters.
(n) Concurrently with the Closing Date, the closing of the Xxxxxx
Acquisition shall have occurred.
(o) Concurrently with the Closing Date, the closing of the Note
Purchase shall have occurred ..
Section 6. Indemnification.
(a) The Star Parties will, jointly and severally, indemnify and hold
harmless each Underwriter, the directors, officers, employees and agents of each
Underwriter and each person, if any, who controls each Underwriter within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, liabilities, expenses and damages
(collectively, "Liabilities") (including, but not limited to, any and all
investigative, legal and other expenses reasonably incurred in connection with,
and any and all amounts paid in settlement of, any action, suit or proceeding
between any of the indemnified parties and any indemnifying parties or between
any indemnified party and any third party (including any governmental agency or
body), or in which any Underwriter or other indemnified party must appear as a
third party witness or otherwise, or any claim asserted), as and when incurred,
to which any Underwriter, or any such person, may become subject under the Act,
the Exchange Act or other federal or state statutory law or regulation, at
common law or otherwise, insofar as such losses, claims, liabilities, expenses
or damages arise out of or are based on (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement or
the Prospectus or any amendment or supplement to the Registration Statement or
the Prospectus or in any documents filed under the Exchange Act and deemed to be
incorporated by reference into the Prospectus, or in any application or other
document executed by or on behalf of any of the Star Entities or based on
written information furnished by or on behalf of the Partnership filed in any
jurisdiction in order to qualify the Units under the securities laws thereof or
filed with the Commission, (ii) the omission or alleged omission to state in
such document a material fact required to be stated in it or necessary to make
the statements in it not misleading or (iii) any act or failure to act or any
alleged act or failure to act by any Underwriter in connection
20
with, or relating in any manner to, the Units or the offering contemplated
hereby, and which is included as part of or referred to in any loss, claim,
liability, expense or damage arising out of or based upon matters covered by
clause (i) or (ii) above (provided that the Star Parties shall not be liable
under this clause (iii) to the extent it is finally judicially determined by a
court of competent jurisdiction that such loss, claim, liability, expense or
damage resulted primarily and directly from any such acts or failures to act
undertaken or omitted to be taken by such Underwriter through its gross
negligence or willful misconduct); provided that the Star Parties will not be
liable to the extent that such loss, claim, liability, expense or damage arises
from the sale of the Units in the public offering to any person by an
Underwriter and is based on an untrue statement or omission or alleged untrue
statement or omission made in reliance on and in conformity with information
relating to any Underwriter furnished in writing to the Partnership by the
Representatives on behalf of any Underwriter expressly for inclusion in the
Registration Statement or the Prospectus. This indemnity agreement will be in
addition to any liability that any of the Star Parties might otherwise have.
(b) Each Underwriter will indemnify and hold harmless each Star Party,
each person, if any, who controls such Star Party within the meaning of Section
15 of the Act or Section 20 of the Exchange Act, each director of the General
Partner and each officer of the General Partner who signs the Registration
Statement to the same extent as the foregoing indemnity from the Star Parties to
each Underwriter, but only insofar as Liabilities arise out of or are based on
any untrue statement or omission or alleged untrue statement or omission made in
reliance on and in conformity with information relating to any Underwriter
furnished in writing to the Partnership by the Representatives on behalf of such
Underwriter expressly for use in the Registration Statement or the Prospectus.
This indemnity will be in addition to any liability that each
Underwriter might otherwise have; provided, however, that in no case shall any
Underwriter be liable or responsible for any amount in excess of the
underwriting discounts and commissions received by such Underwriter.
(c) Any party that proposes to assert the right to be indemnified under
this Section 6 will, promptly after receipt of notice of commencement of any
action against such party in respect of which a claim is to be made against an
indemnifying party or parties under this Section 6, notify each such
indemnifying party of the commencement of such action, enclosing a copy of all
papers served, but the omission so to notify such indemnifying party will not
relieve it from any liability that it may have to any indemnified party under
the foregoing provisions of this Section 6 unless, and only to the extent that,
such omission results in the forfeiture of substantive rights or defenses by the
indemnifying party. If any such action is brought against any indemnified party
and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects by
delivering written notice to the indemnified party promptly after receiving
notice of the commencement of the action from the indemnified party, jointly
with any other indemnifying party similarly notified, to assume the defense of
the action, with counsel satisfactory to the indemnified party, and after notice
from the indemnifying party to the indemnified party of its election to assume
the defense, the indemnifying party will not be liable to the indemnified party
for any legal or other expenses except as provided below and except for the
reasonable costs of investigation subsequently incurred by the indemnified party
in connection with the defense. The indemnified party will have the right to
employ its own counsel in any such action, but the fees, expenses and
21
other charges of such counsel will be at the expense of such indemnified party
unless (1) the employment of counsel by the indemnified party has been
authorized in writing by the indemnifying party, (2) the indemnified party has
reasonably concluded (based on advice of counsel) that there may be legal
defenses available to it or other indemnified parties that are different from or
in addition to those available to the indemnifying party, (3) a conflict or
potential conflict exists (based on advice of counsel to the indemnified party)
between the indemnified party and the indemnifying party (in which case the
indemnifying party will not have the right to direct the defense of such action
on behalf of the indemnified party) or (4) the indemnifying party has not in
fact employed counsel reasonably satisfactory to such indemnified party to
assume the defense of such action within a reasonable time after receiving
notice of the commencement of the action, in each of which cases the reasonable
fees, disbursements and other charges of counsel will be at the expense of the
indemnifying party or parties. It is understood that the indemnifying party or
parties shall not, in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the reasonable fees, disbursements and
other charges of more than one separate firm admitted to practice in such
jurisdiction at any one time for all such indemnified party or parties. All such
fees, disbursements and other charges will be reimbursed by the indemnifying
party promptly as they are incurred. An indemnifying party will not be liable
for any settlement of any action or claim effected without its written consent
(which consent will not be unreasonably withheld). No indemnifying party shall,
without the prior written consent of each indemnified party, settle or
compromise or consent to the entry of any judgment in any pending or threatened
claim, action or proceeding relating to the matters contemplated by this Section
6 (whether or not any indemnified party is a party thereto), unless such
settlement, compromise or consent includes an unconditional release of each
indemnified party from all liability arising or that may arise out of such
claim, action or proceeding and does not include a statement as to or an
admission of fault, culpability or a failure to act by or on behalf of any such
indemnified party. Notwithstanding any other provision of this Section 6(c), if
at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such
indemnifying party agrees that it shall be liable for any settlement effected
without its written consent if (i) such settlement is entered into more than 45
days after receipt by such indemnifying party of the aforesaid request, (ii)
such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and
(iii) such indemnifying party shall not have reimbursed such indemnified party
in accordance with such request prior to the date of such settlement.
(d) In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in the foregoing
paragraphs of this Section 6 is applicable in accordance with its terms but for
any reason is held to be insufficient or unavailable to the Star Parties or the
Underwriters, the Star Parties and the Underwriters will contribute to the total
Liabilities (including any investigative, legal and other expenses reasonably
incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted, but after deducting any contribution
received by the Star Parties from persons other than the Underwriters, such as
persons who control the Star Parties within the meaning of the Act, officers of
the General Partner who signed the Registration Statement and directors of the
General Partner, who also may be liable for contribution) to which any one or
more of the Star Parties and any one or more of the Underwriters may be subject
in such proportion as shall be appropriate to reflect the relative benefits
received by the Partnership on the one hand and the Underwriters on the other.
The relative benefits received by the Partnership on the one hand and the
22
Underwriters on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the
Partnership bear to the total underwriting discounts and commissions received by
the Underwriters, in each case as set forth in the table on the cover page of
the Prospectus. If, but only if, the allocation provided by the foregoing
sentence is not permitted by applicable law, the allocation of contribution
shall be made in such proportion as is appropriate to reflect not only the
relative benefits referred to in the foregoing sentence but also the relative
fault of the Star Parties, on the one hand, and the Underwriters, on the other,
with respect to the statements or omissions which resulted in such loss, claim,
liability, expense or damage, or action in respect thereof, as well as any other
relevant equitable considerations with respect to such offering. Such relative
fault shall be determined by reference to whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Star Parties, or the Representatives
on behalf of the Underwriters, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
statement or omission.
The Partnership and the Underwriters agree that it would not be just and
equitable if contributions pursuant to this Section 6(d) were to be determined
by pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation which does not take into
account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the Liabilities, or action in
respect thereof, referred to above in this Section 6(d) shall be deemed to
include, for purpose of this Section 6(d), any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 6(d), no Underwriter shall be required to contribute any amount in
excess of the underwriting discounts and commissions received by it and no
person found guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) will be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. The Underwriters'
obligations to contribute as provided in this Section 6(d) are several in
proportion to their respective underwriting obligations and not joint. For
purposes of this Section 6(d), any person who controls a party to this Agreement
within the meaning of the Act will have the same rights to contribution as that
party, and each officer of the General Partner who signed the Registration
Statement will have the same rights to contribution as the Partnership, subject
in each case to the provisions hereof. Any party entitled to contribution,
promptly after receipt of notice of commencement of any action against such
party in respect of which a claim for contribution may be made under this
Section 6(d), will notify any such party or parties from whom contribution may
be sought, but the omission so to notify will not relieve the party or parties
from whom contribution may be sought from any other obligation it or they may
have under this Section 6(d). Except for a settlement entered into pursuant to
the last sentence of Section 6(d) hereof, no party will be liable for
contribution with respect to any action or claim settled without its written
consent (which consent will not be unreasonably withheld).
(e) The indemnity and contribution agreements contained in this Section
6 and the representations and warranties of the Star Parties contained in this
Agreement shall remain operative and in full force and effect regardless of (i)
any investigation made by or on behalf of
23
the Underwriters, (ii) acceptance of the Units and payment therefore or (iii)
any termination of this Agreement.
(f) Each of the Star Parties hereby irrevocably consents and agrees,
for the benefit of each Underwriter and each person who controls any
Underwriter, that any action, suit or proceeding asserting a claim for
indemnification or contribution under or pursuant to this Section 6 may be
instituted by any Underwriter or any such controlling person in any state or
federal court in the Borough of Manhattan in the City of New York, and the Star
Parties will accept the jurisdiction of such court in such action, and waives,
to the fullest extent permitted by applicable law, any defense based upon lack
of personal jurisdiction or venue.
Section 7. Termination.
The obligations of the Underwriters under this Agreement may be
terminated at any time on or prior to the Closing Date (or, with respect to the
Option Units, on or prior to the Option Closing Date), by notice to the
Partnership from the Representatives, without liability on the part of any
Underwriter to any of the Star Parties, if, prior to delivery and payment for
the Units (or the Option Units, as the case may be), in the sole judgment of the
Representatives, (i) there has been, since the respective dates as of which
information is given in the Registration Statement or the Prospectus, any
material adverse change in the business, properties, business prospects,
condition (financial or otherwise) or results of operations of the Star
Entities, taken as a whole, (ii) trading in any of the equity securities of the
Partnership shall have been suspended by the Commission, the NASD, an exchange
that lists the Units or the NYSE, (iii) trading in securities generally on the
NYSE or the Nasdaq Stock Market shall have been suspended or limited or minimum
or maximum prices shall have been generally established on such exchange or over
the counter market, or additional material governmental restrictions, not in
force on the date of this Agreement, shall have been imposed upon trading in
securities generally by such exchange or by order of the Commission or the NASD
or any court or other governmental authority, (iv) a general banking moratorium
shall have been declared by either federal or New York State authorities or (v)
any material adverse change in the financial or securities markets in the United
States or in political, financial or economic conditions in the United States or
any outbreak or material escalation of hostilities or declaration by the United
States of a national emergency or war or other calamity or crisis shall have
occurred the effect of any of which is such as to make it, in the sole judgment
of the Representatives, impracticable or inadvisable to market the Units on the
terms and in the manner contemplated by the Prospectus.
Section 8. Substitution of Underwriter.
If any one or more of the Underwriters shall fail or refuse to purchase
any of the Firm Units which it or they has agreed to purchase hereunder, and the
aggregate number of Firm Units which such defaulting Underwriter or Underwriters
agreed but failed or refused to purchase is not more than one-tenth of the
aggregate number of Firm Units, the other Underwriters shall be obligated,
severally, to purchase the Firm Units which such defaulting Underwriter or
Underwriters agreed but failed or refused to purchase, in the proportion which
the number of Firm Units which they have respectively agreed to purchase
pursuant to Section 1 bears to the aggregate number of Firm Units which all such
non-defaulting Underwriters have so agreed to purchase, or in such other
proportion as the Representatives may specify; provided that in no
24
event shall the maximum number of Firm Units which any Underwriter has become
obligated to purchase pursuant to Section 1 be increased pursuant to this
Section 8 by more than one-ninth of the number of Firm Units agreed to be
purchased by such Underwriter without the prior written consent of such
Underwriter. If any Underwriter or Underwriters shall fail or refuse to purchase
any Firm Units and the aggregate number of Firm Units which such defaulting
Underwriter or Underwriters agreed but failed or refused to purchase exceeds
one-tenth of the aggregate number of Firm Units and arrangements satisfactory to
the Representatives and the Partnership for the purchase of such Firm Units are
not made within 48 hours after such default, this Agreement will terminate
without liability on the part of the non-defaulting Underwriters and the
Partnership for the purchase or sale of any Units under this Agreement. In any
such case either the Representatives or the Partnership shall have the right to
postpone the Closing Date, but in no event for longer than seven days, in order
that the required changes, if any, in the Registration Statement and in the
Prospectus or in any other documents or arrangements may be effected. Any action
taken pursuant to this Section 8 shall not relieve the defaulting Underwriter or
Underwriters from liability in respect of any default of such Underwriter under
this Agreement.
Section 9. Information Furnished by the Underwriters.
The statements related to concessions and reallowances and the paragraph
related to stabilization, syndicate covering transactions and penalty bids under
the caption "Underwriting" in the Prospectus Supplement constitute the only
information furnished by or on behalf of the Underwriters relating to them as
such information is referred to in Sections 3(b) and 6 hereof.
Section 10. Miscellaneous
Notice given pursuant to any of the provisions of this Agreement shall
be in writing and, unless otherwise specified, shall be mailed or delivered (a)
if to the Partnership, at the office of the Partnership, 0000 Xxxxxxxx Xxxxxx,
X.X. Xxx 000000, Xxxxxxxx, XX 00000-0000, Attention: Xxxxxxx Xxxxxx, or (b) if
to the Representatives, at the offices of UBS Warburg LLC, 000 Xxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000-0000, Attention: Corporate Finance Department.
Any such notice shall be effective only upon receipt. Any notice under
Section 7 or 8 may be made by telex or telephone, but if so made shall be
subsequently confirmed in writing.
This Agreement has been and is made solely for the benefit of the
Underwriters and the Partnership and of the controlling persons, directors and
officers referred to in Section 6, and their respective successors and assigns,
and no other person shall acquire or have any right under or by virtue of this
Agreement. The term "successors and assigns" as used in this Agreement shall not
include a purchaser, as such purchaser, of Units from any of the Underwriters.
All representations, warranties and agreements of the Star Parties
contained herein or in certificates or other instruments delivered pursuant
hereto, shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any Underwriter or any of its controlling
persons and shall survive delivery of and payment for the Units hereunder.
Any action required or permitted to be taken by the Representatives
under this Agreement may be taken by them jointly or by UBS Warburg.
25
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF
LAWS PRINCIPLES OF SUCH STATE.
Except as set forth below, no Claim may be commenced, prosecuted or
continued in any court other than the courts of the State of New York located in
the City and County of New York or in the United States District Court for the
Southern District of New York, which courts shall have jurisdiction over the
adjudication of such matters, and the Star Parties consent to the jurisdiction
of such courts and personal service with respect thereto. The Star Parties
hereby consent to personal jurisdiction, service and venue in any court in which
any Claim arising out of or in any way relating to this Agreement is brought by
any third party against the Underwriters or any indemnified party. Each of the
Underwriters and the Star Parties (on its behalf and, to the extent permitted by
applicable law, on behalf of its stockholders and affiliates) waives all right
to trial by jury in any action, proceeding or counterclaim (whether based upon
contract, tort or otherwise) in any way arising out of or relating to this
Agreement. The Star Parties agree that a final judgment in any such action,
proceeding or counterclaim brought in any such court shall be conclusive and
binding upon each of the Star Parties and may be enforced in any other courts in
the jurisdiction of which any of the Star Parties is or may be subject, by suit
upon such judgment.
This Agreement may be signed in two or more counterparts with the same
effect as if the signatures thereto and hereto were upon the same instrument.
In case any provision in this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. The Star
Parties and the Underwriters each hereby irrevocably waive any right they may
have to a trial by jury in respect of any claim based upon or arising out of
this Agreement or the transactions contemplated hereby.
This Agreement may not be amended or otherwise modified or any provision
hereof waived except by an instrument in writing signed by UBS Warburg and the
Partnership.
[SIGNATURE PAGES TO FOLLOW]
26
Please confirm that the foregoing correctly sets forth the agreement
among the Star Parties and the several Underwriters.
Very truly yours,
STAR GAS PARTNERS, L.P.
By: STAR GAS LLC, as General Partner
By:___________________________________
Name:
Title:
STAR GAS PROPANE, L.P.
By: STAR GAS LLC, as General Partner
By:____________________________________
Name:
Title:
STAR GAS LLC
By:____________________________________
Name:
Title:
STAR/PETRO INC.
By:____________________________________
Name:
Title:
27
Confirmed as of the Date first above mentioned:
UBS WARBURG LLC
X.X. XXXXXXX & SONS, INC.
XXXXXX BROTHERS INC.
CIBC WORLD MARKETS CORP.
XXXX XXXXXXXX INCORPORATED
FIRST UNION SECURITIES, INC.
Acting on behalf of themselves and as the
Representatives of the other several
Underwriters named in Schedule 1 hereof.
By: UBS WARBURG LLC
By:__________________________
Name: Xxxx Xxxxx
Title: Director
28
SCHEDULE 1
Number of Firm
Units to
Name of Underwriters be Purchased
--------------------------------------------------- ------------------------
UBS Warburg LLC........................................ 812,600
X.X. Xxxxxxx & Sons, Inc............................... 812,500
Xxxxxx Brothers Inc.................................... 812,500
CIBC World Markets Corp................................ 270,800
Xxxx Xxxxxxxx Incorporated............................. 270,800
First Union Securities, Inc............................ 270,800
-------------------------
Total............................................. 3,250,000
=================
1-1
SCHEDULE 2
Registration Rights of the General Partner or Its Affiliates
The Partnership is required
(1) to register for resale under the Act any units proposed to be sold by
the General Partner or its affiliates upon their request if an
exemption from the registration requirements is not otherwise
available; and
(2) to register for resale under the Act the common units and senior
subordinated units issued to affiliates of Petro in the Transaction
(as defined in the Prospectus) upon their request if an exemption from
the registration requirements is not otherwise available.
The Partnership is obligated to pay all expenses incidental to the above
registrations, excluding underwriting discounts and commissions.
2-1
SCHEDULE 3
SECURITY OWNERSHIP OF THE PARTNERSHIP
-------------------------------------
1. Star Gas Partners owns $5,378,476 of 14.5% Subordinated Notes of
Total Gas & Electric, Inc.
3-1
Exhibit A
STAR GAS PARTNERS, L.P.
PRICE DETERMINATION AGREEMENT
August 7, 2001
UBS WARBURG LLC
X.X. XXXXXXX & SONS, INC.
XXXXXX BROTHERS INC.
CIBC WORLD MARKETS CORP.
XXXX XXXXXXXX INCORPORATED
FIRST UNION SECURITIES, INC.
As Representatives of the several Underwriters
named in Schedule 1 hereto
c/o UBS Warburg LLC
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Dear Sirs:
Reference is made to the Underwriting Agreement, dated August 7, 2001 (the
"Underwriting Agreement"), among Star Gas Partners, L.P., a Delaware limited
partnership (the "Partnership"), Star Gas LLC, a Delaware limited liability
company, Star Gas Propane, L.P., a Delaware limited partnership, and Star/Petro
Inc., a Minnesota corporation (the "Star Parties"), and the Underwriters named
in Schedule 1 thereto or hereto (the "Underwriters") for whom UBS Warburg LLC,
X.X. Xxxxxxx & Sons, Inc., Xxxxxx Brothers Inc., CIBC Xxxxxxxxxxx, Xxxx Xxxxxxxx
Incorporated and First Union Securities, Inc. are acting as representatives (the
"Representatives"). If you are the only Underwriters named in Schedule 1, all
references herein to the Representatives shall be deemed to be to you as the
Underwriters. The Underwriting Agreement provides for the purchase by the
Underwriters, subject to the terms and conditions set forth therein, of an
aggregate of 3,250,000 Common Units representing limited partner interests in
the Partnership (the "Firm Units"). The Partnership has also agreed to grant to
the Underwriters an option (the "Option") to purchase up to an aggregate of
487,500 additional Common Units (the "Option Units") on the terms and for the
purposes set forth in the Underwriting Agreement. The Firm Units and the Option
Units are hereinafter collectively referred to as the "Units." This Agreement is
the Price Determination Agreement referred to in the Underwriting Agreement.
Pursuant to Section 1 of the Underwriting Agreement, the undersigned agrees
with the Representatives as follows:
A-1
The public offering price per Unit shall be $18.55.
The purchase price per Firm Unit to be paid by the several Underwriters
shall be $17.62 representing an amount equal to the public offering price set
forth above, less $0.93 per Unit. The Star Parties represent and warrant to each
of the Underwriters that the representations and warranties of the Star Parties
set forth in Section 3 of the Underwriting Agreement are accurate, as though
expressly made at and as of the date hereof.
As contemplated by the Underwriting Agreement, attached as Schedule 1 is a
completed list of the several Underwriters, which shall be a part of this
Agreement and the Underwriting Agreement.
This Agreement shall be governed by the law of the State of New York
without regard to the conflict of laws principles of such State.
If the foregoing is in accordance with your understanding of the agreement
among the Underwriters and the Star Parties, please sign and return to the
Partnership a counterpart hereof, whereupon this instrument along with all
counterparts and together with the Underwriting Agreement shall be a binding
agreement among the Underwriters and the Star Parties in accordance with its
terms and the terms of the Underwriting Agreement.
[SIGNATURE PAGES TO FOLLOW]
A-2
Very truly yours,
STAR GAS PARTNERS, L.P.
By: STAR GAS LLC, as General Partner
By:___________________________________
Name:
Title:
STAR GAS PROPANE, L.P.
By: STAR GAS LLC, as General Partner
By:___________________________________
Name:
Title:
STAR GAS LLC
By:___________________________________
Name:
Title:
STAR/PETRO INC.
By:___________________________________
Name:
Title:
A-3
Confirmed as of the date first above mentioned:
UBS WARBURG LLC
X.X. XXXXXXX & SONS, INC.
XXXXXX BROTHERS INC.
CIBC WORLD MARKETS CORP.
XXXX XXXXXXXX INCORPORATED
FIRST UNION SECURITIES, INC.
Acting on behalf of themselves and as the
Representatives of the other several
Underwriters named in Schedule 1 to the
Underwriting Agreement.
By: UBS WARBURG LLC
By:____________________________
Name: Xxxx Xxxxx
Title: Director
A-4
Exhibit B
August 7, 2001
UBS WARBURG LLC
X.X. XXXXXXX & SONS, INC.
XXXXXX BROTHERS INC.
XXXX XXXXXXXX INCORPORATED
FIRST UNION SECURITIES, INC.
CIBC WORLD MARKETS CORP.
As Representatives of the several Underwriters
c/o UBS Warburg LLC
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Dear Sirs:
In consideration of the agreement of the several Underwriters, for which UBS
Warburg LLC, X.X. Xxxxxxx & Sons, Inc., Xxxxxx Brothers Inc., Xxxx Xxxxxxxx
Incorporated, First Union Securities, Inc. and CIBC World Markets Corp. (the
"Representatives") intend to act as Representatives to underwrite a proposed
public offering (the "Offering") of 3,250,000 Common Units (the "Common Units")
of Star Gas Partners, L.P., a Delaware Partnership (the "Partnership"), as
contemplated by registration statement (Registration No. 333-57994) on form S-3,
which was filed with the Securities and Exchange Commission, the undersigned
hereby agrees that the undersigned will not, for a period of 90 days after the
commencement of the public offering of such units, without the prior written
consent of UBS Warburg LLC directly or indirectly offer, pledge, sell, contract
to sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase, or otherwise transfer or
dispose of, or enter into a transaction which would have the same effect, or
enter into any swap, hedge or other arrangement that transfers, in whole or in
part, any of the economic consequence of ownership of, or publicly disclose the
intention to make any such offer, sale, pledge or disposition, or require any
person to file with the Securities and Exchange Commission a registration
statement under the Securities Act of 1933 to register, any Common Units or
securities convertible into or exercisable or exchangeable for Common Units
(which, for the avoidance of doubt, shall not include Senior Subordinated Units)
or warrants or other rights to acquire Common Units of which the undersigned is
now, or may in the future become, the beneficial owner within the meaning of
Rule 13d-3 under the Securities Exchange Act of 1934 (other than pursuant to
employee stock option plans as in existence on the date hereof or in connection
with other employee incentive compensation arrangements consistent with past
practice).
Very truly yours,
By:_______________________________
Name:
Title:
B-1
Exhibit C
Form of Opinion of Counsel to the Partnership
1. Each of the Partnership and the Operating Partnership has been duly
formed and is validly existing and in good standing as a limited partnership
under the Delaware Act, with all necessary partnership power and authority to
own or lease its properties and conduct its business, in each case as described
in the Prospectus.
2. Each Principal Subsidiary has been duly incorporated and is validly
existing and in good standing as a corporation under the laws of the
jurisdiction of its incorporation, with all necessary corporate power and
authority to own or lease its properties and conduct its business, in each case
as described in the Prospectus.
3. The General Partner has been duly organized and is validly existing
and in good standing as a limited liability company under the laws of the State
of Delaware, with all necessary limited liability company power and authority to
own or lease its properties and conduct its business and to act as general
partner of the Partnership and the Operating Partnership, in each case as
described in the Prospectus.
4. (a) Each of the Partnership, the Operating Partnership, the General
Partner and the Principal Subsidiaries is duly qualified or registered as a
foreign limited partnership, foreign limited liability company or foreign
corporation, as the case may be, for the transaction of business under the laws
of the States set forth on Exhibit A to this opinion. (b) To such counsel's
knowledge such jurisdictions are the only jurisdictions in which the character
of the business conducted by it or the location of the properties owned or
leased by it make such qualification or registration necessary (except where the
failure to so qualify or register would not have a material adverse effect on
the condition (financial or other), results of operations or business of the
Star Entities, taken as a whole, or subject the Partnership or the limited
partners of the Partnership to any material liability or disability).
5. The General Partner owns all outstanding General Partner Units,
representing the entire general partner interest in the Partnership. All of such
General Partner Units have been duly authorized and validly issued in accordance
with the Partnership Agreement, and the General Partner owns such General
Partner Units free and clear of all liens, encumbrances, security interests,
charges or claims (i) in respect of which a financing statement under the
Uniform Commercial Code of the State of Delaware naming the General Partner as a
debtor is on file in the office of the Secretary of State of the State of
Delaware or (ii) otherwise known to such counsel, without independent
investigation, other than those created by or arising under the Delaware Act,
the Bank Credit Facilities or the First Mortgage Note Agreement.
6. The Partnership is the sole limited partner of the Operating
Partnership with a 99.99% limited partner interest in the Operating Partnership.
Such limited partner interest has been duly authorized and validly issued in
accordance with the Operating Partnership Agreement and is fully paid (to the
extent required under the Operating Partnership Agreement) and nonassessable
(except as such nonassessability may be affected by Section 17-607 of the
Delaware Act), and the Partnership owns such limited partner interest free and
clear of all liens,
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encumbrances, security interests, equities, charges or claims (i) in respect of
which a financing statement under the Uniform Commercial Code of the State of
Delaware naming the Partnership as a debtor is on file in the office of the
Secretary of State of the State of Delaware or (ii) otherwise known to such
counsel, without independent investigation, other than those created by or
arising under the Delaware Act, the Bank Credit Facilities or the First Mortgage
Note Agreement.
7. All of the outstanding Common Units and Senior Subordinated Units
have been, and the Units to be issued and sold to the Underwriters by the
Partnership pursuant to the Underwriting Agreement, including any Option Units,
and the limited partner interests represented thereby have been, duly authorized
in accordance with the Partnership Agreement and, when issued and delivered to
the Underwriters against payment therefor in accordance with the terms of the
Underwriting Agreement, will be validly issued, fully paid (to the extent
required under the Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by Section 17-607 of the Delaware Act). All of
the outstanding Common Units and Senior Subordinated Units are not, and the
Units will not be, subject to any preemptive or similar right, nor any
restriction upon the voting or transfer of such Units under (i) the statutes,
judicial and administrative decisions, and the rules and regulations of the
governmental agencies of the State of Delaware, (ii) the Partnership Agreement,
(iii) any instrument, document, contract or agreement referred to in the
Registration Statement or any instrument, document, contract or agreement filed
as an exhibit to or incorporated by reference in, the Registration Statement or
(iv) any other law or agreement of which such counsel are aware. Except as
described in the Registration Statement or the Prospectus or as set forth on
Exhibit B hereto, to such counsel's knowledge, the Partnership does not have
outstanding, and at the Closing Date will not have outstanding, any options to
purchase, or any rights or warrants calling for the issuance of, or any
securities or obligations convertible into, or any contracts or commitments to
issue or sell, any Common Units or other partnership interests, any capital
stock or partnership interests of any subsidiary or any such warrants,
convertible securities or obligations.
8. The Partnership has all requisite power and authority to issue, sell
and deliver the Units, in accordance with and upon the terms and conditions set
forth in the Underwriting Agreement, the Partnership Agreement and the
Prospectus. At the Closing Date, all partnership and limited liability company
action, as the case may be, required to be taken by the Partnership or the
General Partner or any of their partners or members for the authorization,
issuance, sale and delivery of the Units shall have been validly taken.
9. No permit, consent, approval, authorization or order of, or any
filing or declaration with, any court or governmental agency or body is required
in connection with the execution, delivery and performance of the Underwriting
Agreement by the Star Parties and the consummation of the transactions
contemplated thereby, including the issuance and delivery of the Units, except
such as have been obtained under the Act and the Rules and Regulations and such
as may be required under state securities or "Blue Sky" laws or by the by-laws
and rules of the NASD in connection with the purchase and distribution by the
Underwriters of the Units.
10. The description of the Common Units contained in the Prospectus is
complete and accurate in all material respects. The form of certificate used to
evidence the Common Units is in due and proper form and complies with all
applicable statutory requirements.
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11. The Registration Statement, the Prospectus (including any documents
incorporated, at the time they were filed, by reference into the Prospectus) and
any further amendments and supplements thereto prior to the date hereof, comply
in all material respects as to form with the requirements of the Act, the
Exchange Act, the Exchange Act Rules and Regulations and the Rules and
Regulations (except that such counsel need express no opinion as to financial
statements, schedules and other financial data contained in the Registration
Statement, or the Prospectus, or incorporated by reference therein).
12. To such counsel's knowledge, any instrument, document, lease,
license, contract or other agreement (collectively, "Documents") required to be
described or referred to in the Registration Statement or the Prospectus has
been properly described or referred to therein and any Document required to be
filed as an exhibit to the Registration Statement has been filed as an exhibit
thereto or has been incorporated as an exhibit by reference in the Registration
Statement; and no default exists in the due performance or observance of any
material obligation, agreement, covenant or condition contained in any Document
filed or required to be filed as an exhibit to the Registration Statement.
13. To such counsel's knowledge, except as described in the Registration
Statement or the Prospectus, no person or entity has the right to require the
registration under the Act of Common Units or other securities of any Star
Entity by reason of the filing or effectiveness of the Registration Statement.
14. To such counsel's knowledge, none of the Star Entities or the Xxxxxx
Entities is in violation of, or in default with respect to, any law, rule,
regulation, order, judgment or decree, except as may be described in the
Prospectus, and except such as in the aggregate do not now have and will not in
the future have a material adverse effect upon the operations, business or
assets of the Star Entities or the Xxxxxx Entities, taken as a whole.
15. All of the issued and outstanding member interests of the General
Partner are duly authorized and have been validly issued, and are fully paid and
nonassessable, and the LLC Owners own all such outstanding membership interests
free and clear of all liens, encumbrances, security interests, equities, charges
or claims (except for such liens, encumbrances, security interests, equities,
charges or claims as are not, individually or in the aggregate, material) (i) in
respect of which a financing statement under the Uniform Commercial Code of the
State of Delaware naming any LLC Owner as a debtor is on file in the office of
the Secretary of State of the State of Delaware or (ii) otherwise known to such
counsel, without independent investigation.
16. As of the Closing Date, after giving effect to the issuance of the
Firm Units but not any Option Units, the capitalization of the Partnership will
consist of 22,974,967 Common Units, 2,696,946 Senior Subordinated Units, 345,364
Junior Subordinated Units and 325,729 General Partner Units.
_________________________
1 The number of common units outstanding does not include 60,727 common
units registered in the name of Petro, which the Partnership treats as
treasury units and includes 7,735 common units which are issuable in
connection with the Petro acquisition upon the surrender of Petro
securities.
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17. The LLC Owners own all outstanding Junior Subordinated Units. All of
such Junior Subordinated Units and the limited partner interests represented
thereby have been duly authorized and validly issued in accordance with the
Partnership Agreement and are fully paid (to the extent required under the
Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by Section 17-607 of the Delaware Act), and each of the LLC Owners owns
its Junior Subordinated Units free and clear of all liens, encumbrances,
security interests, equities, charges or claims (except for such liens,
encumbrances, security interests, equities, charges or claims as are not,
individually or in the aggregate, material) (i) in respect of which a financing
statement under the Uniform Commercial Code of the State of Delaware naming any
LLC Owner as a debtor is on file in the office of the Secretary of State of the
State of Delaware or (ii) otherwise known to such counsel, without independent
investigation.
18. The General Partner is the sole general partner of the Operating
Partnership with a 0.01% general partner interest in the Operating Partnership.
Such general partner interest has been duly authorized and validly issued in
accordance with the Operating Partnership Agreement, and the General Partner
owns such general partner interest free and clear of all liens, encumbrances,
security interests, equities, charges or claims (except for such liens,
encumbrances, security interests, equities, charges or claims as are not,
individually or in the aggregate, material) (i) in respect of which a financing
statement under the Uniform Commercial Code of the State of Delaware naming the
General Partner as a debtor is on file in the office of the Secretary of State
of the State of Delaware or (ii) otherwise known to such counsel, without
independent investigation, other than those created by or arising under the
Delaware Act, the Bank Credit Facilities or the First Mortgage Note Agreement.
19. The Partnership owns 300,000 shares, $1.00 par value per share, of
Common Stock, or 72.73% of the common equity interests, of TG&E. The Partnership
also owns 30,000 shares of Series B preferred stock of TG&E having a $1.67 per
share non-cumulative preferred dividend and a $100.00 per share liquidation
preference. Such shares have been duly authorized and validly issued and are
fully paid and non-assessable and are owned directly by the Partnership free and
clear of all liens, encumbrances, security interests, charges and claims (i) in
respect of which a financing statement under the Uniform Commercial Code of the
State of Delaware naming the Partnership as a debtor is on file in the office of
the Secretary of State of the State of Delaware or (ii) otherwise known to such
counsel, without independent investigation, other than the interest created by
the pledge by the Partnership to Bank of America of its TG&E shares as
collateral for TG&E's bank credit facilities.
20. TG&E owns all of the shares of Common Stock of each of Total Gas &
Electricity (PA), Inc. and TG&E Service Company, Inc. Such shares have been duly
authorized and validly issued and are fully paid and non-assessable and are
owned directly by TG&E free and clear of all liens, encumbrances, security
interests, charges and claims (i) in respect of which a financing statement
under the Uniform Commercial Code of the State of Delaware naming the
Partnership as a debtor is on file in the office of the Secretary of State of
the State of Delaware or (ii) otherwise known to such counsel, without
independent investigation, other than the general security interest created by
TG&E's bank credit facilities.
21. At the Closing Date (after giving effect to the concurrent closings
of the offering of Firm Units contemplated herein and the Note Purchase), Xxxxxx
X.X. will be a wholly-owned
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subsidiary of Petro, Inc., which is a wholly-owned subsidiary of Petro, and will
own all of the outstanding shares of capital stock of each of Xxxxxx Inc. and
Blueray and 90% of the outstanding shares of capital stock of Region Oil. All of
the outstanding units representing partnership interests in Xxxxxx X.X. have
been duly authorized and validly issued and are fully paid and non-assessable
and, at the Closing Date, will be owned directly and indirectly by Petro, Inc.
free and clear of all liens encumbrances and claims. All of the outstanding
shares of capital stock of Xxxxxx Inc., Blueray and Region Oil have been duly
authorized and validly issued and are fully paid and non-assessable and, at the
Closing Date, will be owned by Xxxxxx X.X. free and clear of all liens
encumbrances and claims.
22. All descriptions in the Prospectus of statutes, regulations or
legal or governmental proceedings are accurate in all material respects and
fairly present the information required to be shown. The statements in the
Registration Statement or the Prospectus under the captions, "Cash Distribution
Policy," "Description of the Common Units," "Description of Partnership
Securities," "Conflicts of Interest," "Federal Income Tax Considerations" and
"Recent Tax Developments" insofar as they constitute descriptions of the
Partnership Agreements or refer to statements of law or legal conclusions, are
accurate and complete in all material respects.
23. Each Star Party has full power and authority to enter into the
Underwriting Agreement. The Underwriting Agreement has been duly authorized,
executed and delivered by each Star Party and is a valid and binding agreement
of each Star Party and, except for the indemnification and contribution
provisions thereof, as to which such counsel need express no opinion, is
enforceable against the Star Parties in accordance with the terms thereof.
24. The Partnership Agreement has been duly authorized, executed and
delivered by the General Partner and is a valid and legally binding agreement of
the General Partner, enforceable against the General Partner in accordance with
its terms. The Operating Partnership Agreement has been duly authorized,
executed and delivered by the General Partner and the Partnership and is a valid
and legally binding agreement of the General Partner and the Partnership,
enforceable against each of them in accordance with its terms; provided that,
with respect to each of the Partnership Agreements, the enforceability thereof
may by limited by bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or similar laws relating to or affecting creditors' rights generally
and by general equitable principles (regardless of whether such enforceability
is considered in a proceeding in equity or at law).
25. Neither the issuance and sale by the Partnership of the Units nor
the execution, delivery and performance of the Underwriting Agreement will (i)
violate any of the provisions of the certificate or agreement of limited
partnership, certificate of incorporation or by-laws, certificate of formation
or limited liability company agreement or other governing documents of any of
the Star Entities or the Xxxxxx Entities, (ii) breach or result in a default
under (or an event which with notice or lapse of time or both would constitute
such a defa ult), cause the time for performance of any obligation to be
accelerated under or give any party the right to accelerate the payment of any
amount under, or result in the creation or imposition of any lien, charge or
encumbrance upon any of the assets of the Star Entities or the Xxxxxx Entities
pursuant to the terms of (x) any indenture, mortgage, deed of trust, loan
agreement, bond, debenture, note agreement, capital lease or other evidence of
indebtedness of which such counsel has knowledge, (y) any voting trust
arrangement or any contract or other agreement to which a Star Entity or
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Xxxxxx Entity is a party that restricts the ability of such Star Entity or
Xxxxxx Entity to issue securities and of which such counsel has knowledge or (z)
any Document filed as an exhibit to, or incorporated as an exhibit by reference
in, the Registration Statement, (iii) breach or otherwise violate any existing
obligation of any of the Star Entities or the Xxxxxx Entities under any court or
administrative order, judgment or decree of which such counsel has knowledge or
(iv) violate applicable provisions of any statute or regulation in any of the
states of the Star Entities' or Xxxxxx Entities' formation, and any state in
which such entities have material operations, or of the United States.
26. Assuming that the Underwriters do not have notice of any adverse
claim (as defined in Sections 8-102 and 8-105 of the New York Commercial Code)
to the Units, upon delivery to the Underwriters of the Units as contemplated by
this Agreement and payment by the Underwriters of the purchase price for the
Units, the Underwriters (or their nominee) will be "protected purchasers" as
such term is used in Section 8-303 of the New York Commercial Code. No financing
statement under the UCC of the State of Delaware naming the General Partner, the
Partnership or the Operating Partnership as a debtor is on file in the Office of
the Secretary of the State of Delaware with respect to the Units and such
counsel, without independent investigation, does not otherwise have notice of
any adverse claim.
27. Except as described in the Prospectus, to such counsel's knowledge,
each of the Star Entities and the Xxxxxx Entities has (i) all governmental
licenses, permits, consents, orders, approvals and other authorizations
necessary to carry on its business as contemplated in the Prospectus, (ii)
complied in all respects with all laws, regulations and orders applicable to it
or its business, except where the failure to so comply would not have a material
adverse affect on the Star Entities or the Xxxxxx Entities, taken as a whole,
and (iii) performed all its obligations required to be performed by it, and is
not in default, under any indenture, mortgage, deed of trust, voting trust
agreement, loan agreement, bond, indenture, note agreement, lease, contract or
other agreement or instrument (collectively, a "contract or other agreement") to
which it is a party or by which its property is bound or affected. None of the
Star Entities or the Xxxxxx Entities is in violation of any provision of its
certificate or agreement of limited partnership, certificate of incorporation or
by-laws, certificate of formation or limited liability company agreement, as the
case may be.
28. None of the Star Entities or the Xxxxxx Entities are, or as a
result of the transactions described under "Recent Developments" in the
Prospectus Supplement will be, (i) a "holding company" or a "subsidiary company"
of a "holding company" or an "affiliate" thereof, within the meaning of the
Public Utility Holding Company Act of 1935, as amended, or (ii) an "investment
company," a company "controlled by" an "investment company" or an "affiliated
person" of, or "promoter" or "principal underwriter" for, an "investment
company," as such terms are defined in the Investment Company Act of 1940, as
amended, and the rules and regulations thereunder.
29. The Units have been approved for listing on the NYSE, subject only
to official notice of issuance.
30. The Registration Statement was declared effective under the Act on
April 27, 2001. Such counsel shall confirm that it has been advised by the
Commission that no order
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suspending the effectiveness of the Registration Statement has been issued and
no proceeding for that purpose has been instituted or threatened or is pending
or contemplated by the Commission. Any required filing of the Prospectus
pursuant to Rule 424(b) has been made in the manner and within the time period
required by such Rule.
31. To such counsel's knowledge, there are no actions, suits,
proceedings or investigations pending or overtly threatened in writing against
the Star Entities or the Xxxxxx Entities, or any of their respective officers or
directors in their capacities as such, before or by any court, governmental,
administrative or regulatory body, agency, commission or arbitrator which (i)
seek to challenge the legality or enforceability of the Underwriting Agreement,
(ii) seek to challenge the legality or enforceability of any of the Documents
filed, or required to be filed, as exhibits to the Registration Statement, (iii)
seek damages or other remedies with respect to any of the Documents filed, or
required to be filed, as exhibits to the Registration Statement, (iv) except as
set forth in or contemplated by the Registration Statement or the Prospectus,
seek money damages or seek to impose criminal penalties upon the Star Entities
or the Xxxxxx Entities or any of their respective officers or directors in their
capacities as such and of which such counsel has knowledge or (v) seek to enjoin
any of the business activities of the Star Entities or the Xxxxxx Entities or
the transactions described in the Prospectus and of which such counsel has
knowledge.
Such counsel participated in the preparation of the Registration
Statement and the Prospectus and, without assuming any responsibility for the
accuracy, completeness or fairness of the statements contained in the
Registration Statement, the Prospectus or in any amendment or supplement thereto
or in any documents incorporated by reference into the Prospectus (except to the
extent specified in the foregoing opinion), nothing has come to such counsel's
attention that causes such counsel to believe that, both as of the Effective
Date and the Closing Date, the Registration Statement or any amendment thereto,
including any documents incorporated by reference into the Registration
Statement, contained or contains any untrue statement of a material fact or
omitted or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading or that the Prospectus
or any amendment or supplement thereto, including any documents incorporated by
reference into the Prospectus, at the time such Prospectus was issued, at the
time any such amended or supplemented Prospectus was issued, and at the Closing
Date, contained or contains any untrue statement of a material fact or omitted
or omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances in which they were made, not
misleading (except that such counsel need express no opinion as to financial
statements, schedules and other financial data contained in the Registration
Statement or the Prospectus or incorporated by reference therein).
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