7,000,000 Shares STONE ENERGY CORPORATION Common Stock UNDERWRITING AGREEMENT
Exhibit 1.1
7,000,000 Shares
STONE ENERGY CORPORATION
Common Stock
June 10, 2009
Barclays Capital Inc.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated,
As Representatives of the several
Underwriters named in Schedule 1 attached hereto,
c/o Barclays Capital Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated,
As Representatives of the several
Underwriters named in Schedule 1 attached hereto,
c/o Barclays Capital Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Stone Energy Corporation, a Delaware corporation (the “Company”), proposes to sell 7,000,000
shares (the “Firm Stock”) of the Company’s common stock, par value $0.01 per share (the “Common
Stock”). In addition, the Company proposes to grant to the underwriters (the “Underwriters”) named
in Schedule 1 attached to this agreement (this “Agreement”) an option to purchase up to
1,050,000 additional shares of the Common Stock on the terms set forth in Section 2 (the “Option
Stock”). The Firm Stock and the Option Stock, if purchased, are hereinafter collectively called
the “Stock.” This is to confirm the agreement concerning the purchase of the Stock from the
Company by the Underwriters.
1. Representations, Warranties and Agreements of the Company. The Company represents,
warrants and agrees that:
(a) A registration statement on Form S-3 relating to the Stock has (i) been prepared by
the Company in conformity with the requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and the rules and regulations (the “Rules and Regulations”) of the
Securities and Exchange Commission (the “Commission”) thereunder; (ii) been filed with the
Commission under the Securities Act; and (iii) become effective under the Securities Act.
Copies of such registration statement and any amendment thereto have been made available by
the Company to you as the representatives (the “Representatives”) of the Underwriters. As
used in this Agreement:
(i) “Applicable Time” means 6:00 p.m. (New York City time) June 10, 2009;
(ii) “Effective Date” means any date as of which any part of such registration
statement relating to the Stock became, or is deemed to have become, effective under
the Securities Act in accordance with the Rules and Regulations;
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(iii) “Issuer Free Writing Prospectus” means each “free writing prospectus” (as
defined in Rule 405 of the Rules and Regulations) prepared by or on behalf of the
Company or used or referred to by the Company in connection with the offering of the
Stock;
(iv) “Preliminary Prospectus” means any preliminary prospectus relating to the
Stock included in such registration statement or filed with the Commission pursuant
to Rule 424(b) of the Rules and Regulations, including any preliminary prospectus
supplement thereto relating to the Stock;
(v) “Pricing Disclosure Package” means, as of the Applicable Time, the most
recent Preliminary Prospectus, together with the information included in Schedule 4
hereto and each Issuer Free Writing Prospectus filed or used by the Company on or
before the Applicable Time, other than a road show that is an Issuer Free Writing
Prospectus under Rule 433 of the Rules and Regulations;
(vi) “Prospectus” means the final prospectus relating to the Stock, including
any prospectus supplement thereto relating to the Stock, as filed with the
Commission pursuant to Rule 424(b) of the Rules and Regulations; and
(vii) “Registration Statement” means, collectively, the various parts of such
registration statement, each as amended as of the Effective Date for such part,
including any Preliminary Prospectus or the Prospectus and all exhibits to such
registration statement.
Any reference to any Preliminary Prospectus or the Prospectus shall be deemed to refer to
and include any documents incorporated by reference therein pursuant to Form S-3 under the
Securities Act as of the date of such Preliminary Prospectus or the Prospectus, as the case
may be. Any reference to the “most recent Preliminary Prospectus” shall be deemed to refer
to the latest Preliminary Prospectus included in the Registration Statement or filed
pursuant to Rule 424(b) prior to or on the date hereof (including, for purposes hereof, any
documents incorporated by reference therein prior to or on the date hereof). Any reference
to any amendment or supplement to any Preliminary Prospectus or the Prospectus shall be
deemed to refer to and include any document filed under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), after the date of such Preliminary Prospectus or the
Prospectus, as the case may be, and incorporated by reference in such Preliminary Prospectus
or the Prospectus, as the case may be; and any reference to any amendment to the
Registration Statement shall be deemed to include any annual report of the Company on Form
10-K filed with the Commission pursuant to Section 13(a) or 15(d) of the Exchange Act after
the Effective Date that is incorporated by reference in the Registration Statement. The
Commission has not issued any order preventing or suspending the use of any Preliminary
Prospectus or the Prospectus or suspending the effectiveness of the Registration Statement,
and no proceeding or examination for such purpose has been instituted or threatened by the
Commission.
(b) The Company was not at the time of initial filing of the Registration Statement and
at the earliest time thereafter that the Company or another offering
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participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the Rules
and Regulations) of the Stock, is not on the date hereof and will not be on the applicable
Delivery Date an “ineligible issuer” (as defined in Rule 405). The Company has been since
the time of initial filing of the Registration Statement and continues to be eligible to use
Form S-3 for the offering of the Stock.
(c) The Registration Statement conformed and will conform in all material respects on
the Effective Date and on the applicable Delivery Date, and any amendment to the
Registration Statement filed after the date hereof will conform in all material respects
when filed, to the requirements of the Securities Act and the Rules and Regulations. The
most recent Preliminary Prospectus conformed, and the Prospectus will conform, in all
material respects when filed with the Commission pursuant to Rule 424(b) and on the
applicable Delivery Date to the requirements of the Securities Act and the Rules and
Regulations. The documents incorporated by reference in any Preliminary Prospectus or the
Prospectus conformed, and any further documents so incorporated will conform, when filed
with the Commission, in all material respects to the requirements of the Exchange Act or the
Securities Act, as applicable, and the rules and regulations of the Commission thereunder.
(d) The Registration Statement did not, as of the Effective Date, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; provided that no representation
or warranty is made as to information contained in or omitted from the Registration
Statement in reliance upon and in conformity with written information furnished to the
Company through the Representatives by or on behalf of any Underwriter specifically for
inclusion therein, which information is specified in Section 8(e).
(e) The Prospectus will not, as of its date and on the applicable Delivery Date,
contain an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that no representation or
warranty is made as to information contained in or omitted from the Prospectus in reliance
upon and in conformity with written information furnished to the Company by an Underwriter
or through the Representatives by or on behalf of any Underwriter specifically for inclusion
therein, which information is specified in Section 8(e).
(f) The documents incorporated by reference in any Preliminary Prospectus or the
Prospectus did not, and any further documents filed and incorporated by reference therein
will not, when filed with the Commission, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading.
(g) The Pricing Disclosure Package did not, as of the Applicable Time, contain an
untrue statement of a material fact or omit to state a material fact required to
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be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that no representation or
warranty is made as to information contained in or omitted from the Pricing Disclosure
Package in reliance upon and in conformity with written information furnished to the Company
by an Underwriter or through the Representatives by or on behalf of any Underwriter
specifically for inclusion therein, which information is specified in Section 8(e).
(h) Each Issuer Free Writing Prospectus (including, without limitation, any road show
that is a free writing prospectus under Rule 433), when considered together with the Pricing
Disclosure Package as of the Applicable Time, did not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading.
(i) Each Issuer Free Writing Prospectus conformed or will conform in all material
respects to the requirements of the Securities Act and the Rules and Regulations on the date
of first use, and the Company has complied with any filing requirements applicable to such
Issuer Free Writing Prospectus pursuant to the Rules and Regulations. The Company has not
made any offer relating to the Stock that would constitute an Issuer Free Writing Prospectus
without the prior written consent of the Representatives, except as set forth on
Schedule 2 hereto. The Company has retained in accordance with the Rules and
Regulations all Issuer Free Writing Prospectuses that were not required to be filed pursuant
to the Rules and Regulations.
(j) Each of the Company and its subsidiaries (as defined in Section 17) has been duly
organized, is validly existing and in good standing as a corporation or other business
entity under the laws of its jurisdiction of organization and is duly qualified to do
business and in good standing as a foreign corporation or other business entity in each
jurisdiction in which its respective ownership or lease of property or the conduct of its
respective businesses requires such qualification, except where the failure to be so
qualified or in good standing would not, in the aggregate, reasonably be expected to have a
material adverse effect on the financial condition, results of operations, stockholders’
equity, properties or business of the Company and its subsidiaries taken as a whole (a
“Material Adverse Effect”); each of the Company and its subsidiaries has all power and
authority necessary to own or hold its properties and to conduct the businesses in which it
is engaged. The Company does not own or control, directly or indirectly, any corporation,
association or other entity other than the subsidiaries listed in Exhibit 21 to the
Company’s Annual Report on Form 10-K for the most recent fiscal year.
(k) The Company has an authorized capitalization as set forth in each of the Pricing
Disclosure Package and the Prospectus, and all of the issued shares of capital stock of the
Company have been duly authorized and validly issued, are fully paid and non-assessable,
conform to the description thereof contained in the most recent Preliminary Prospectus. All
of the Company’s options, warrants and other rights to purchase or exchange any securities
for shares of the Company’s capital stock have been duly authorized and validly issued,
conform to the description thereof contained in the
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Pricing Disclosure Package. Except as set forth in the Pricing Disclosure Package, all
of the issued membership interests of each subsidiary of the Company have been duly
authorized and validly issued, are fully paid and non-assessable (except as such
nonassessability may be affected by Section 18-607 of Delaware Limited Liability Company
Act) and are owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims, except for such liens, encumbrances, equities or claims as
would not, in the aggregate, reasonably be expected to have a Material Adverse Effect.
(l) The shares of the Stock to be issued and sold by the Company to the Underwriters
hereunder have been duly authorized and, upon payment and delivery in accordance with this
Agreement, will be validly issued, fully paid and non-assessable, will conform to the
description thereof contained in the Pricing Disclosure Package.
(m) The Company has all requisite corporate power and authority to execute, deliver and
perform its obligations under this Agreement. This Agreement has been duly authorized and
validly executed and delivered by the Company.
(n) The execution, delivery and performance of this Agreement by the Company, the
consummation of the transactions contemplated hereby and the application of the proceeds
from the sale of the Stock as described under “Use of Proceeds” in the Pricing Disclosure
Package will not (i) result in a breach or violation of any of the terms or provisions of,
or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or
other agreement or instrument to which the Company or any of its subsidiaries is a party or
by which the Company or any of its subsidiaries is bound or to which any of the property or
assets of the Company or any of its subsidiaries is subject; (ii) result in any violation of
the provisions of the charter or by-laws (or similar organizational documents) of the
Company or any of its subsidiaries; or (iii) result in any violation of any statute or any
order, rule or regulation of any court or governmental agency or body having jurisdiction
over the Company or any of its subsidiaries or any of their properties or assets, except in
the case of the foregoing clauses (i) and (iii), for such breaches or violations that would
not, in the aggregate, reasonably be expected to have a Material Adverse Effect.
(o) No consent, approval, authorization or order of, or filing or registration with,
any court or governmental agency or body having jurisdiction over the Company or any of its
subsidiaries or any of their properties or assets is required for the execution, delivery
and performance of this Agreement by the Company, the consummation of the transactions
contemplated hereby, the application of the proceeds from the sale of the Stock as described
under “Use of Proceeds” in the Pricing Disclosure Package, except for the registration of
the Stock under the Securities Act and such consents, approvals, authorizations,
registrations or qualifications as have been obtained or may be required under the Exchange
Act and applicable state or foreign securities laws in connection with the purchase and sale
of the Stock by the Underwriters.
(p) Except as set forth in the Pricing Disclosure Package, there are no contracts,
agreements or understandings between the Company and any person granting
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such person the right (other than rights which have been waived in writing or otherwise
satisfied) to require the Company to file a registration statement under the Securities Act
with respect to any securities of the Company owned or to be owned by such person or to
require the Company to include such securities in the securities registered pursuant to the
Registration Statement or in any securities being registered pursuant to any other
registration statement filed by the Company under the Securities Act.
(q) Except as described in the Pricing Disclosure Package, neither the Company nor any
of its subsidiaries has sustained, since the date of the latest audited financial statements
included or incorporated by reference in the Pricing Disclosure Package, any loss or
interference with its respective business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, and since such date, there has not been any change in the capital
stock, net current assets or long-term debt of the Company or any of its subsidiaries or any
material adverse change, or any development involving a prospective material adverse change,
in or affecting the financial condition, results of operations, stockholders’ equity,
properties, management or business of the Company and its subsidiaries taken as a whole, in
each case except as would not, in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(r) Since the date as of which information is given in the most recent Preliminary
Prospectus, and except as may otherwise be disclosed in the Pricing Disclosure Package, the
Company has not (i) incurred any material liability or obligation, direct or contingent,
other than liabilities and obligations that were incurred in the ordinary course of
business, (ii) entered into any material transaction not in the ordinary course of business
or (iii) declared or paid any dividend on its capital stock.
(s) The consolidated financial statements (including the related notes and supporting
schedules) of the Company included or incorporated by reference in the Pricing Disclosure
Package comply as to form in all material respects with the requirements of Regulation S-X
under the Securities Act and present fairly the financial condition, results of operations
and cash flows of the entities purported to be shown thereby at the dates and for the
periods indicated and have been prepared in conformity with accounting principles generally
accepted in the United States applied on a consistent basis throughout the periods involved,
except as otherwise stated therein and, in the case of unaudited financial statements,
subject to year-end amount adjustments.
(t) Ernst & Young LLP, who have certified certain financial statements of the Company
and its consolidated subsidiaries, whose report appears in the most recent Preliminary
Prospectus or is incorporated by reference therein are independent public accountants as
required by the Securities Act and the Rules and Regulations.
(u) Netherland, Xxxxxx & Associates, Inc., whose report appears in the most recent
Preliminary Prospectus or is incorporated by reference therein, was, as of the date of such
report, and is, as of the date hereof, an independent reserve engineer with respect to the
Company.
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(v) Estimates of proved reserves and present values as described in the Pricing
Disclosure Package and reflected in the letter referred to in Section 7(i) hereof comply in
all material respects with the applicable requirements of Regulation S-X and Industry Guide
2 under the Securities Act.
(w) Neither the Company nor any subsidiary is, and as of the applicable Delivery Date
and, after giving effect to the offer and sale of the Stock and the application of the
proceeds therefrom as described under “Use of Proceeds” in the Pricing Disclosure Package,
none of them will be, (i) an “investment company” within the meaning of such term under the
Investment Company Act of 1940, as amended (the “Investment Company Act”), and the rules and
regulations of the Commission thereunder or (ii) a “business development company” (as
defined in Section 2(a)(48) of the Investment Company Act).
(x) Except as described in the Pricing Disclosure Package, there are no legal or
governmental proceedings pending to which the Company or any of its subsidiaries is a party
or of which any property or assets of the Company or any of its subsidiaries is the subject
which, if determined adversely, would, in the aggregate, reasonably be expected to have a
Material Adverse Effect or would, in the aggregate, reasonably be expected to have a
material adverse effect on the performance of this Agreement or the consummation of the
transactions contemplated hereby; and to the Company’s knowledge, no such proceedings are
threatened or contemplated by governmental authorities or others.
(y) No relationship, direct or indirect, exists between or among the Company, on the
one hand, and the directors, officers, stockholders, customers or suppliers of the Company,
on the other hand, that is required to be described in the Pricing Disclosure Package which
is not so described.
(z) No labor disturbance by the employees of the Company or its subsidiaries exists or,
to the knowledge of the Company, is imminent that would reasonably be expected to have a
Material Adverse Effect.
(aa) (i) Each “employee benefit plan” (within the meaning of Section 3(3) of the
Employee Retirement Security Act of 1974, as amended (“ERISA”)) for which the Company or any
member of its “Controlled Group” (defined as any organization which is a member of a
controlled group of corporations within the meaning of Section 414 of the Internal Revenue
Code of 1986, as amended (the “Code”)) would have any liability (each a “Plan”) has been
maintained in material compliance with its terms and with the requirements of all applicable
statutes, rules and regulations including ERISA and the Code; (ii) with respect to each Plan
subject to Title IV of ERISA (a) no “reportable event” (within the meaning of Section
4043(c) of ERISA) has occurred or is reasonably expected to occur, (b) no “accumulated
funding deficiency” (within the meaning of Section 302 of ERISA or Section 412 of the Code),
whether or not waived, has occurred or is reasonably expected to occur, (c) the fair market
value of the assets under each Plan exceeds the present value of all benefits accrued under
such Plan (determined based on those assumptions used to fund such Plan) and (d) neither the
Company or any member
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of its Controlled Group has incurred, or reasonably expects to incur, any liability
under Title IV of ERISA (other than contributions to the Plan or premiums to the PBGC in the
ordinary course and without default) in respect of a Plan (including a “multiemployer plan”,
within the meaning of Section 4001(c)(3) of ERISA); and (iii) each Plan that is intended to
be qualified under Section 401(a) of the Code is so qualified and nothing has occurred,
whether by action or by failure to act, which would cause the loss of such qualification.
(bb) The Company and each of its subsidiaries have filed all federal, state and local
income and franchise tax returns required to be filed through the date hereof, subject to
permitted extensions, and have paid all taxes due thereon other than those being contested
in good faith, those for which reserves have been provided in accordance with U.S. generally
accepted accounting principles or those currently payable without penalty or interest, and,
other than disclosed in the Pricing Disclosure Package, no tax deficiency has been
determined adversely to the Company or any of its subsidiaries which has had, nor does the
Company have any knowledge of any tax deficiencies which, if determined adversely, would, in
the aggregate, reasonably be expected to have a Material Adverse Effect.
(cc) Neither the Company nor any of its subsidiaries (i) is in violation of its charter
or by-laws (or similar organizational documents), (ii) is in default, and no event has
occurred that, with notice or lapse of time or both, would constitute such a default, in the
due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a
party or by which it is bound or to which any of its properties or assets is subject or
(iii) is in violation of any statute or any order, rule or regulation of any court or
governmental agency or governmental body having jurisdiction over it or its property or
assets or has failed to obtain any license, permit, certificate, franchise or other
governmental authorization or permit necessary to the ownership of its property or to the
conduct of its business, except in the case of clauses (ii) and (iii) above, except for
breaches or defaults that would not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.
(dd) There is and has been no failure on the part of the Company and any of the
Company’s directors or officers, in their capacities as such, to comply with the provisions
of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated in connection
therewith.
(ee) The Company and each of its subsidiaries have such permits, licenses, patents,
franchises, certificates of need and other approvals or authorizations of governmental or
regulatory authorities (“Permits”) as are necessary under applicable law to own their
properties and conduct their businesses in the manner described in the Pricing Disclosure
Package, except where the failure to have such Permits would not, in the aggregate,
reasonably be expected to have a Material Adverse Effect; each of the Company and its
subsidiaries has fulfilled and performed all of its obligations with respect to the Permits,
and no event has occurred that allows, or after notice or lapse of time would allow,
revocation or termination thereof or results in any other impairment of
9
the rights of the holder or any such Permits, except for any of the foregoing that
would not reasonably be expected to have a Material Adverse Effect.
(ff) Except as would not, in the aggregate, reasonably be expected to have a Material
Adverse Effect, the Company and each of its subsidiaries own or possess adequate rights to
use all material patents, patent applications, trademarks, service marks, trade names,
trademark registrations, service xxxx registrations, copyrights, licenses, know-how,
software, systems and technology (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures) necessary for
the conduct of their respective businesses; and the Company and each of its subsidiaries
have no reason to believe that the conduct of their respective businesses will conflict
with, and have not received any notice of any material claim of conflict with, any such
rights of others.
(gg) Except as described in the Pricing Disclosure Package, the Company and each of its
subsidiaries (i) are in compliance with all applicable laws, regulations, ordinances, rules,
orders, judgments, decrees, permits or other legally enforceable requirements of any
governmental authority having lawful jurisdiction over the assets or operations of the
Company or any of its subsidiaries, relating to the protection of human health or safety (to
the extent such health or safety requirements relate to exposure to hazardous or toxic
substances or wastes, pollutants or contaminants), the environment, or natural resources, or
to hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”) applicable to such entity, which compliance includes, without limitation, obtaining,
maintaining and complying with all permits and authorizations and approvals required by
Environmental Laws to conduct their respective businesses as they are currently being
conducted, and (ii) have not received written notice of any actual or alleged violation of
Environmental Laws, or of any potential legally enforceable liability for, or other legally
enforceable obligation under, Environmental Laws concerning the presence, disposal or
release of hazardous or toxic substances or wastes, pollutants or contaminants, except in
the case of each of clause (i) or (ii) where such non-compliance, violation, liability, or
other obligation would not, in the aggregate, reasonably be expected to have a Material
Adverse Effect. Except as described in the Pricing Disclosure Package, (A) there are no
legal proceedings that are pending, or currently known to the Company to be contemplated,
against the Company or any of its subsidiaries under Environmental Laws in which a
governmental authority is also a party, other than such proceedings regarding which it is
reasonably believed no monetary sanctions of $100,000 or more will be imposed and (B) none
of the Company and its subsidiaries anticipates capital expenditures relating to
Environmental Laws that would, in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(hh) No subsidiary of the Company is currently prohibited, directly or indirectly, from
paying any dividends to the Company, from making any other distribution on such subsidiary’s
capital stock, from repaying to the Company any loans or advances to such subsidiary from
the Company or from transferring any of such subsidiary’s property or assets to the Company
or any other subsidiary of the Company, except as described in the Pricing Disclosure
Package.
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(ii) Neither the Company nor any of its subsidiaries, nor, to the knowledge of the
Company, any director, officer, agent, employee or other person associated with or acting on
behalf of the Company or any of its subsidiaries, has (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds; (iii) violated or is in violation of
any provision of the U.S. Foreign Corrupt Practices Act of 1977; or (iv) made any unlawful
bribe, rebate, payoff, influence payment, kickback or other unlawful payment.
(jj) The operations of the Company and its subsidiaries are and have been conducted at
all times in compliance with applicable financial recordkeeping and reporting requirements
of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of its subsidiaries with respect to the Money
Laundering Laws is pending or, to the knowledge of the Company, threatened, except, in each
case, as would not reasonably be expected to have a Material Adverse Effect.
(kk) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not
directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise
make available such proceeds to any subsidiary, joint venture partner or other person or
entity, for the purpose of financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC.
(ll) The Company has not distributed and, prior to the later to occur of any Delivery
Date and completion of the distribution of the Stock, will not distribute any offering
material in connection with the offering and sale of the Stock other than any Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus to which the Representatives
have consented in accordance with Section 1(i) or 5(a)(vi) and any Issuer Free Writing
Prospectus set forth on Schedule 2 hereto.
(mm) The Company has not taken and will not take, directly or indirectly, any action
designed to or that has constituted or that would reasonably be expected to cause or result
in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the shares of the Stock.
(nn) Except as otherwise set forth in the Pricing Disclosure Package or such as in the
aggregate has not had and would not reasonably be expected to have a Material Adverse
Effect, the Company and its subsidiaries have title to their respective properties as
follows: (a) with respect to xxxxx (including leasehold interests and appurtenant
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personal property) and non-producing oil and gas properties (including undeveloped
locations on leases held by production), such title is good and free and clear of all liens,
security interests, pledges, charges, encumbrances, mortgages and restrictions; (b) with
respect to non-producing properties in exploration prospects, such title was investigated in
accordance with customary industry procedures prior to the acquisition thereof by the
Company or its subsidiaries; (c) with respect to real property other than oil and gas
interests, such title is good and marketable free and clear of all liens, security
interests, pledges, charges, encumbrances, mortgages and restrictions; and (d) with respect
to personal property other than that appurtenant to oil and gas interests, such title is
free and clear of all liens, security interests, pledges, charges, encumbrances, mortgages
and restrictions. No real property owned, leased, licensed or used by the Company or its
subsidiaries lies in an area which is, or to the knowledge of the Company will be, subject
to restrictions that would prohibit, and no statements of facts relating to the actions or
inaction of another person or entity or his or its ownership, leasing, licensing or use of
any real or personal property exists or will exist that would prevent, the continued
effective ownership, leasing, licensing, exploration, development or production or use of
such real property in the business of the Company or its subsidiaries as presently conducted
or as the Registration Statement, the Preliminary Prospectus, the Prospectus or the Pricing
Disclosure Package indicates they contemplate conducting, except as disclosed in the
Registration Statement, the Preliminary Prospectus, the Prospectus or the Pricing Disclosure
Package or such as in the aggregate has not had and would not reasonably be expected to have
a Material Adverse Effect.
(oo) An application for the listing of the Stock has been submitted to the New York
Stock Exchange.
Any certificate signed by any officer of the Company and delivered to the Representatives or
counsel for the Underwriters in connection with the offering of the Stock shall be deemed a
representation and warranty by the Company, as to matters covered thereby, to each Underwriter.
2. Purchase of the Stock by the Underwriters. On the basis of the representations,
warranties and agreements of the Underwriters contained in, and subject to the terms and conditions
of, this Agreement, the Company agrees to issue and sell 7,000,000 shares of the Firm Stock to the
several Underwriters, and each of the Underwriters, severally and not jointly, agrees to purchase
the number of shares of the Firm Stock set forth opposite that Underwriter’s name in Schedule
1 hereto. The respective purchase obligations of the Underwriters with respect to the Firm
Stock shall be rounded among the Underwriters to avoid fractional shares, as the Representatives
may determine.
In addition, the Company grants to the Underwriters an option to purchase up to
1,050,000 additional shares of Option Stock. Such option is exercisable in the event that the
Underwriters sell more shares of Common Stock than the number of Firm Stock in the offering and as
set forth in Section 4 hereof. Each Underwriter agrees, severally and not jointly, to purchase the
number of shares of Option Stock (subject to such adjustments to eliminate fractional shares as the
Representatives may determine) that bears the same proportion to the total number of shares of
Option Stock to be sold on such Delivery Date as the number of shares
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of Firm Stock set forth in Schedule 1 hereto opposite the name of such Underwriter
bears to the total number of shares of Firm Stock.
The price of both the Firm Stock and any Option Stock purchased by the Underwriters shall be
$7.56 per share.
The Company shall not be obligated to deliver any of the Firm Stock or Option Stock to be
delivered on the applicable Delivery Date, except upon payment for all such Stock to be purchased
on such Delivery Date as provided herein.
The Company hereby confirms its engagement of Tudor, Pickering, Xxxx & Co. Securities, Inc.
(the “Independent Underwriter”) as, and the Independent Underwriter hereby confirms its agreement
with the Company to render services as, a “qualified independent underwriter” within the meaning of
NASD Rule 2720(b)(15) of the Financial Industry Regulatory Authority, Inc. (“FINRA”) with respect
to the offering and sale of the Stock. As compensation for the services of the Independent
Underwriter acting in such capacity hereunder, the Company agrees to pay the Independent
Underwriter $25,000 on the Initial Delivery Date (as defined below). The public offering price of
the Firm Stock and the Option Stock, if any, is not in excess of the price recommended by the
Independent Underwriter, acting as a “qualified independent underwriter” within the meaning of NASD
Rule 2720 of the FINRA.
3. Offering of Stock by the Underwriters. Upon authorization by the Representatives of the
release of the Firm Stock, the several Underwriters propose to offer the Firm Stock for sale upon
the terms and conditions to be set forth in the Prospectus.
4. Delivery of and Payment for the Stock. Delivery of and payment for the Firm Stock shall be
made at 10:00 A.M., New York City time, on the fourth full business day following the date of this
Agreement or at such other date or place as shall be determined by agreement between the
Representatives and the Company. This date and time are sometimes referred to as the “Initial
Delivery Date.” Delivery of the Firm Stock shall be made to the Representatives for the account of
each Underwriter against payment by the several Underwriters through the Representatives and of the
respective aggregate purchase prices of the Firm Stock being sold by the Company to or upon the
order of the Company of the purchase price by wire transfer in immediately available funds to the
accounts specified by the Company. Time shall be of the essence, and delivery at the time and place
specified pursuant to this Agreement is a further condition of the obligation of each Underwriter
hereunder. The Company shall deliver the Firm Stock through the facilities of DTC unless the
Representatives shall otherwise instruct.
The option granted in Section 2 will expire 30 days after the date of this Agreement and may
be exercised in whole or from time to time in part by written notice being given to the Company by
the Representatives; provided that if such date falls on a day that is not a business day, the
option granted in Section 2 will expire on the next succeeding business day. Such notice shall set
forth the aggregate number of shares of Option Stock as to which the option is being exercised, the
names in which the shares of Option Stock are to be registered, the denominations in which the
shares of Option Stock are to be issued and the date and time, as determined by the
Representatives, when the shares of Option Stock are to be delivered; provided, however, that this
date and time shall not be earlier than the Initial Delivery Date nor
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earlier than the second business day after the date on which the option shall have been
exercised nor later than the fifth business day after the date on which the option shall have been
exercised. Each date and time the shares of Option Stock are delivered is sometimes referred to as
an “Option Stock Delivery Date,” and the Initial Delivery Date and any Option Stock Delivery Date
are sometimes each referred to as a “Delivery Date.”
Delivery of the Option Stock by the Company and payment for the Option Stock by the several
Underwriters through the Representatives shall be made at 10:00 A.M., New York City time, on the
date specified in the corresponding notice described in the preceding paragraph or at such other
date or place as shall be determined by agreement between the Representatives and the Company. On
the Option Stock Delivery Date, the Company shall deliver or cause to be delivered the Option Stock
to the Representatives for the account of each Underwriter against payment by the several
Underwriters through the Representatives and of the respective aggregate purchase prices of the
Option Stock being sold by the Company to or upon the order of the Company of the purchase price by
wire transfer in immediately available funds to the accounts specified by the Company. Time shall
be of the essence, and delivery at the time and place specified pursuant to this Agreement is a
further condition of the obligation of each Underwriter hereunder. The Company shall deliver the
Option Stock through the facilities of DTC unless the Representatives shall otherwise instruct.
5. Further Agreements of the Company and the Underwriters. (a) The Company agrees:
(i) To prepare the Prospectus in a form approved by the Representatives and to file
such Prospectus pursuant to Rule 424(b) under the Securities Act not later than the
Commission’s close of business on the second business day following the execution and
delivery of this Agreement; to make no further amendment or any supplement to the
Registration Statement or the Prospectus prior to the last Delivery Date except as provided
herein; to advise the Representatives, promptly after it receives notice thereof, of the
time when any amendment or supplement to the Registration Statement or the Prospectus has
been filed and to make available to the Representatives copies thereof; to file timely all
reports and any definitive proxy or information statements required to be filed by the
Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
Act subsequent to the date of the Prospectus and for so long as the delivery of a prospectus
is required in connection with the offering or sale of the Stock; to advise the
Representatives, promptly after it receives notice thereof, of the issuance by the
Commission of any stop order or of any order preventing or suspending the use of the
Prospectus or any Issuer Free Writing Prospectus, of the suspension of the qualification of
the Stock for offering or sale in any jurisdiction, of the initiation or threatening of any
proceeding or examination for any such purpose or of any request by the Commission for the
amending or supplementing of the Registration Statement, the Prospectus or any Issuer Free
Writing Prospectus or for additional information; and, in the event of the issuance of any
stop order or of any order preventing or suspending the use of the Prospectus or any Issuer
Free Writing Prospectus or suspending any such qualification, to use promptly its best
efforts to obtain its withdrawal;
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(ii) To make available promptly to each of the Representatives and to counsel for the
Underwriters a signed copy of the Registration Statement as originally filed with the
Commission, and each amendment thereto filed with the Commission, including all consents and
exhibits filed therewith, except in each case to the extent available on the Commission’s
Interactive Data Electronic Application website;
(iii) To make available promptly to the Representatives such number of the following
documents as the Representatives shall reasonably request: (A) conformed copies of the
Registration Statement as originally filed with the Commission and each amendment thereto
(in each case excluding exhibits other than this Agreement and the computation of per share
earnings), (B) each Preliminary Prospectus, the Prospectus and any amended or supplemented
Prospectus, (C) each Issuer Free Writing Prospectus and (D) any document incorporated by
reference in any Preliminary Prospectus or the Prospectus; and, if the delivery of a
prospectus is required at any time after the date hereof in connection with the offering or
sale of the Stock or any other securities relating thereto and if at such time any events
shall have occurred as a result of which the Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made when such Prospectus is delivered, not misleading, or, if for any other
reason it shall be necessary to amend or supplement the Prospectus or to file under the
Exchange Act any document incorporated by reference in the Prospectus in order to comply
with the Securities Act or the Exchange Act, to notify the Representatives and, upon their
request, to file such document and to prepare and make available without charge to each
Underwriter and to any dealer in securities as many copies as the Representatives may from
time to time reasonably request of an amended or supplemented Prospectus that will correct
such statement or omission or effect such compliance;
(iv) To file promptly with the Commission any amendment or supplement to the
Registration Statement or the Prospectus that may, in the judgment of the Company or the
Representatives, be required by the Securities Act or requested by the Commission;
(v) To the extent practicable, prior to filing with the Commission any amendment or
supplement to the Registration Statement or the Prospectus, any document incorporated by
reference in the Prospectus or any amendment to any document incorporated by reference in
the Prospectus, to furnish a copy thereof to the Representatives and counsel for the
Underwriters and obtain the consent of the Representatives to the filing (which consent
shall not be unreasonably conditioned, withheld or delayed);
(vi) Not to make any offer relating to the Stock that would constitute an Issuer Free
Writing Prospectus without the prior written consent of the Representatives.
(vii) To comply with all applicable requirements of Rule 433 with respect to any Issuer
Free Writing Prospectus; and if at any time after the date hereof any events shall have
occurred as a result of which any Issuer Free Writing Prospectus, as then amended or
supplemented, would conflict with the information in the Registration
15
Statement, the most recent Preliminary Prospectus or the Prospectus or would include an
untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made,
not misleading, or, if for any other reason it shall be necessary to amend or supplement any
Issuer Free Writing Prospectus, to notify the Representatives and, upon their request, to
file such document and to prepare and make available without charge to each Underwriter as
many copies as the Representatives may from time to time reasonably request of an amended or
supplemented Issuer Free Writing Prospectus that will correct such conflict, statement or
omission or effect such compliance;
(viii) As soon as practicable after the Effective Date and in any event not later than
16 months after the date hereof, to make generally available to the Company’s security
holders and to deliver to the Representatives an earnings statement of the Company and its
subsidiaries (which need not be audited) complying with Section 11(a) of the Securities Act
and the Rules and Regulations;
(ix) Promptly from time to time to take such action as the Representatives may
reasonably request to qualify the Stock for offering and sale under the securities laws of
Canada and such other jurisdictions as the Representatives may request and to comply with
such laws so as to permit the continuance of sales and dealings therein in such
jurisdictions for as long as may be necessary to complete the distribution of the Stock;
provided that in connection therewith the Company shall not be required to (i) qualify as a
foreign corporation in any jurisdiction in which it would not otherwise be required to so
qualify, (ii) file a general consent to service of process in any such jurisdiction or (iii)
subject itself to taxation in any jurisdiction in which it would not otherwise be subject;
(x) For a period commencing on the date hereof and ending on the 60th day after the
date of the Prospectus (the “Lock-Up Period”), not to offer, sell, pledge, or otherwise
dispose of, directly or indirectly, or file with the Commission a registration statement
under the Securities Act relating to, any shares of Common Stock or securities convertible
into or exchangeable or exercisable for any shares of Common Stock, or publicly disclose the
intention to make any offer, sale, pledge, disposition, or filing, without the prior written
consent of the Representatives, except that (1) the Company may issue and sell shares of
Common Stock upon the conversion or exchange of convertible or exchangeable securities
outstanding on the date of the Prospectus, (2) the Company may issue and sell shares of
Common Stock upon the exercise of options or warrants outstanding on the date of the
Prospectus or as a result of permitted grants or issuances as described in the following
clause (3), (3) the Company may grant or issue stock options and warrants, restricted stock,
phantom stock, and other securities to its employees, officers, and directors pursuant to
the terms of a plan in effect on the date of the Prospectus, (4) the Company may make
filings with the Commission in connection with any such grants or issuances and (5) the
Company may take any action (including, among other things, making filings with the
Commission) required by it pursuant to that certain Stockholders Agreement, dated as of
April 30, 2008, by and among the Company and Xxxxxxxx Resources, Inc. (“Xxxxxxxx”), except
that the Company will not file a registration statement pursuant to such Stockholders
Agreement prior to the earlier of (A) July 1, 2009, if the Underwriters exercise the option
set forth in Section 2 in full prior to
16
that date or (B) July 9, 2009, and to cause each officer, director and stockholder of
the Company set forth on Schedule 3 hereto to furnish to the Representatives, prior
to the Initial Delivery Date, a letter or letters, substantially in the form of Exhibit
A hereto (the “Lock-Up Agreements”); notwithstanding the foregoing, if (1) during the
last 17 days of the Lock-Up Period, the Company issues an earnings release or material news
or a material event relating to the Company occurs or (2) prior to the expiration of the
Lock-Up Period, the Company announces that it will release earnings results during the
16-day period beginning on the last day of the Lock-Up Period, then the restrictions imposed
in this paragraph shall continue to apply until the expiration of the 18-day period
beginning on the issuance of the earnings release or the announcement of the material news
or the occurrence of the material event, unless Barclays Capital Inc. and Xxxxxxx Lynch,
Pierce, Xxxxxx & Xxxxx Incorporated, on behalf of the Underwriters, waive such extension in
writing. Notwithstanding the foregoing, the Company and the Underwriters agree that the
Company may conduct confidential communications during the Lock-Up Period with respect to
possible transactions involving issuances of Common Stock or other securities after the
Lock-Up Period;
(xi) To apply the net proceeds from the sale of the Stock being sold by the Company as
set forth in the Prospectus;
(b) Each Underwriter severally agrees that such Underwriter shall not include any “issuer
information” (as defined in Rule 433) in any “free writing prospectus” (as defined in Rule 405)
used or referred to by such Underwriter without the prior consent of the Company (any such issuer
information with respect to whose use the Company has given its consent, “Permitted Issuer
Information”); provided that (i) no such consent shall be required with respect to any such issuer
information contained in any document filed by the Company with the Commission prior to the use of
such free writing prospectus and (ii) “issuer information,” as used in this Section 5(b), shall not
be deemed to include information prepared by or on behalf of such Underwriter on the basis of or
derived from issuer information.
6. Expenses. The Company agrees, whether or not the transactions contemplated by this
Agreement are consummated or this Agreement is terminated, to pay all costs, expenses, fees and
taxes incident to and in connection with (a) the authorization, issuance, sale and delivery of the
Stock and any stamp duties or other taxes payable in that connection; (b) the preparation, printing
and filing under the Securities Act of the Registration Statement (including any exhibits thereto),
any Preliminary Prospectus, the Prospectus, any Issuer Free Writing Prospectus and any amendment or
supplement thereto; (c) the distribution of the Registration Statement (including any exhibits
thereto), any Preliminary Prospectus, the Prospectus, any Issuer Free Writing Prospectus and any
amendment or supplement thereto, or any document incorporated by reference therein, all as provided
in this Agreement; (d) the production and distribution of this Agreement, any supplemental
agreement among Underwriters, and any other related documents in connection with the offering,
purchase, sale and delivery of the Stock (but not, however, legal fees and expenses of counsel to
the Underwriters incurred in connection with any of the foregoing, except under the circumstances
contemplated by Section 11 of this Agreement); (e) the listing of the Stock on the New York Stock
Exchange and/or any other exchange; (f) the qualification of the Stock under the securities laws of
the several jurisdictions as provided in Section 5(a)(ix) and the preparation, printing and
17
distribution of a Blue Sky Memorandum (including related fees and expenses of counsel to the
Underwriters); (g) the preparation, printing and distribution of one or more versions of the
Preliminary Prospectus and the Prospectus for distribution in Canada, often in the form of a
Canadian “wrapper” (including related fees and expenses of Canadian counsel to the Underwriters);
(h) the Independent Underwriter; (i) the investor presentations on any “road show” undertaken in
connection with the marketing of the Stock, including, without limitation, expenses associated with
any electronic roadshow, travel and lodging expenses of the representatives and officers of the
Company and the cost of any aircraft chartered in connection with the road show; and (j) all other
costs and expenses incident to the performance of the obligations of the Company under this
Agreement; provided that, except as provided in this Section 6 and in Section 11, the Underwriters
shall pay their own costs and expenses, including the costs and expenses of their counsel, any
transfer taxes on the Stock which they may sell and the expenses of advertising any offering of the
Stock made by the Underwriters.
7. Conditions of Underwriters’ Obligations. The respective obligations of the Underwriters
hereunder are subject to the accuracy, when made and on each Delivery Date, of the representations
and warranties of the Company contained herein, to the performance by the Company of its
obligations hereunder, and to each of the following additional terms and conditions:
(a) The Prospectus shall have been timely filed with the Commission in accordance with
Section 5(a)(i); the Company shall have complied with all filing requirements applicable to
any Issuer Free Writing Prospectus used or referred to after the date hereof; no stop order
suspending the effectiveness of the Registration Statement or preventing or suspending the
use of the Prospectus or any Issuer Free Writing Prospectus shall have been issued and no
proceeding or examination for such purpose shall have been initiated or threatened by the
Commission; and any request of the Commission for inclusion of additional information in the
Registration Statement or the Prospectus or otherwise shall have been complied with.
(b) No Underwriter shall have discovered and disclosed to the Company on or prior to
such Delivery Date that the Registration Statement, the Prospectus or the Pricing Disclosure
Package, or any amendment or supplement thereto, contains an untrue statement of a fact
which, in the opinion of Xxxxx Xxxxx L.L.P., counsel for the Underwriters, is material or
omits to state a fact which, in the opinion of such counsel, is material and is required to
be stated therein or is necessary to make the statements therein not misleading.
(c) All corporate proceedings and other legal matters incident to the authorization,
form and validity of this Agreement, the Stock, the Registration Statement, the Prospectus
and any Issuer Free Writing Prospectus, and all other legal matters relating to this
Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all
material respects to counsel for the Underwriters, and the Company shall have furnished to
such counsel all documents and information that they may reasonably request to enable them
to pass upon such matters.
18
(d) Xxxxxx & Xxxxxx L.L.P. shall have furnished to the Representatives its written
opinion, as counsel to the Company, addressed to the Underwriters and dated such Delivery
Date, in form and substance reasonably satisfactory to the Representatives, substantially in
the form attached hereto as Exhibit B.
(e) Xxxxxx X. Xxxxx, III, shall have furnished to the Representatives his written
opinion, as the Company’s Senior Vice President, Secretary and General Counsel, addressed to
the Underwriters and dated such Delivery Date, in form and substance reasonably satisfactory
to the Representatives, substantially in the form attached hereto as Exhibit C.
(f) The Representatives shall have received from Xxxxx Xxxxx L.L.P., counsel for the
Underwriters, such opinion or opinions, dated such Delivery Date, with respect to the
issuance and sale of the Stock, the Registration Statement, the Prospectus and the Pricing
Disclosure Package and other related matters as the Representatives may reasonably require,
and the Company shall have furnished to such counsel such documents as they reasonably
request for the purpose of enabling them to pass upon such matters.
(g) At the time of execution of this Agreement, the Representatives shall have received
from Ernst & Young LLP a letter, in form and substance reasonably satisfactory to the
Representatives, addressed to the Underwriters and dated the date hereof (i) confirming that
they are independent public accountants within the meaning of the Securities Act and are in
compliance with the applicable requirements relating to the qualification of accountants
under Rule 2-01 of Regulation S-X of the Commission, and (ii) stating, as of the date hereof
(or, with respect to matters involving changes or developments since the respective dates as
of which specified financial information is given in the most recent Preliminary Prospectus,
as of a date not more than three days prior to the date hereof), the conclusions and
findings of such firm with respect to the financial information and other matters ordinarily
covered by accountants’ “comfort letters” to underwriters in connection with registered
public offerings.
(h) With respect to the letter of Ernst & Young LLP referred to in the preceding
paragraph (the “initial letter”), the Company shall have caused to be furnished to the
Representatives a letter (the “bring-down letter”) of such accountants, addressed to the
Underwriters and dated such Delivery Date (i) confirming that they are independent public
accountants within the meaning of the Securities Act and are in compliance with the
applicable requirements relating to the qualification of accountants under Rule 2-01 of
Regulation S-X of the Commission, (ii) stating, as of the date of the bring-down letter (or,
with respect to matters involving changes or developments since the respective dates as of
which specified financial information is given in the Prospectus, as of a date not more than
three days prior to the date of the bring-down letter), the conclusions and findings of such
firm with respect to the financial information and other matters covered by the initial
letter and (iii) confirming in all material respects the conclusions and findings set forth
in the initial letter.
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(i) At the time of execution of this Agreement, the Representatives shall have received
from Netherland, Xxxxxx & Associates, Inc. an initial letter (the “initial expert letter”),
in form and substance reasonably satisfactory to the Representatives, addressed to the
Underwriters and dated the date hereof and a subsequent letter dated as of the Delivery
Date, which such letter shall cover the period from the initial expert letter to the
Delivery Date, stating the conclusions and findings of such firm with respect to the
Company’s proved reserves as is customary to underwriters in connection with registered
public offerings.
(j) The Company shall have furnished to the Representatives a certificate, dated such
Delivery Date, of its Chief Executive Officer and its Chief Financial Officer stating that:
(i) The representations and warranties of the Company in Section 1 are true and
correct on and as of such Delivery Date, and the Company has complied with all its
agreements contained herein and satisfied all the conditions on its part to be
performed or satisfied hereunder at or prior to such Delivery Date;
(ii) No stop order suspending the effectiveness of the Registration Statement
has been issued; and no proceedings or examination for that purpose have been
instituted or, to the knowledge of such officers, threatened; and
(iii) They have carefully examined the Registration Statement, the Prospectus
and the Pricing Disclosure Package, and, in their opinion, (A) (1) the Registration
Statement, as of the Effective Date, (2) the Prospectus, as of its date and on the
applicable Delivery Date, or (3) the Pricing Disclosure Package, as of the
Applicable Time, did not and do not contain any untrue statement of a material fact
and did not and do not omit to state a material fact required to be stated therein
or necessary to make the statements therein (except in the case of the Registration
Statement, in the light of the circumstances under which they were made) not
misleading, and (B) since the Effective Date, no event has occurred that should have
been set forth in a supplement or amendment to the Registration Statement, the
Prospectus or any Issuer Free Writing Prospectus that has not been so set forth;
(k) Neither the Company nor any of its subsidiaries shall have sustained, since the
date of the latest audited financial statements included or incorporated by reference in the
Pricing Disclosure Package, any loss or interference with its respective business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree and, since such date, there shall
not have been any change in the capital stock, net current assets or long-term debt of the
Company or any of its subsidiaries or any material adverse change, or any development
involving a prospective change, in or affecting the financial condition, results of
operations, stockholders’ equity, properties, management or business of the Company and its
subsidiaries taken as a whole, the effect of which, in any such case is, in the judgment of
the Representatives, so material and adverse as to make it impracticable
20
or inadvisable to proceed with the public offering or the delivery of the Stock being
delivered on such Delivery Date on the terms and in the manner contemplated in the
Prospectus.
(l) Subsequent to the execution and delivery of this Agreement (i) no downgrading shall
have occurred in the rating accorded the Company’s debt securities by any “nationally
recognized statistical rating organization” (as that term is defined by the Commission for
purposes of Rule 436(g)(2) of the Rules and Regulations), and (ii) no such organization
shall have publicly announced that it has under surveillance or review, with possible
negative implications, its rating of any of the Company’s debt securities.
(m) Subsequent to the execution and delivery of this Agreement there shall not have
occurred any of the following: (i) trading in securities generally on the New York Stock
Exchange or the American Stock Exchange or in the over-the-counter market, or trading in any
securities of the Company on any exchange or in the over-the-counter market, shall have been
suspended or materially limited or the settlement of such trading generally shall have been
materially disrupted or minimum prices shall have been established on any such exchange or
such market by the Commission, by such exchange or by any other regulatory body or
governmental authority having jurisdiction, (ii) a banking moratorium shall have been
declared by federal or state authorities, (iii) the United States shall have become engaged
in hostilities, there shall have been an escalation in hostilities involving the United
States or there shall have been a declaration of a national emergency or war by the United
States or (iv) such a material adverse change in general economic, political or financial
conditions, including, without limitation, as a result of terrorist activities after the
date hereof (or the effect of international conditions on the financial markets in the
United States shall be such), as to make it, in the judgment of the Representatives,
impracticable or inadvisable to proceed with the public offering or delivery of the Stock
being delivered on such Delivery Date on the terms and in the manner contemplated in the
Prospectus.
(n) The New York Stock Exchange shall have approved the Stock for listing, subject only
to official notice of issuance.
(o) The Lock-Up Agreements between the Representatives and the officers, directors and
stockholders of the Company set forth on Schedule 3, delivered to the
Representatives on or before the date of this Agreement, shall be in full force and effect
on such Delivery Date.
All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
8. Indemnification and Contribution.
(a) The Company shall indemnify and hold harmless each Underwriter, its directors,
officers and employees and each person, if any, who controls any Underwriter within the
meaning of Section 15 of the Securities Act, from and against any loss, claim,
21
damage or liability, joint or several, or any action in respect thereof (including, but
not limited to, any loss, claim, damage, liability or action relating to purchases and sales
of Stock), to which that Underwriter, director, officer, employee or controlling person may
become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or alleged
untrue statement of a material fact contained in (A) the Preliminary Prospectus, the
Registration Statement, the Prospectus or in any amendment or supplement thereto, (B) any
Issuer Free Writing Prospectus or in any amendment or supplement thereto or (C) any
Permitted Issuer Information used or referred to in any “free writing prospectus” (as
defined in Rule 405) used or referred to by any Underwriter, (D) any “road show” (as defined
in Rule 433) not constituting an Issuer Free Writing Prospectus (a “Non-Prospectus Road
Show”) or (E) any Blue Sky application or other document prepared or executed by the Company
(or based upon any written information furnished by the Company for use therein)
specifically for the purpose of qualifying any or all of the Stock under the securities laws
of any state or other jurisdiction (any such application, document or information being
hereinafter called a “Blue Sky Application”) or (ii) the omission or alleged omission to
state in the Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer
Free Writing Prospectus or in any amendment or supplement thereto or in any Permitted Issuer
Information, any Non-Prospectus Road Show or any Blue Sky Application, any material fact
required to be stated therein or necessary to make the statements therein not misleading,
and shall reimburse each Underwriter and each such director, officer, employee or
controlling person promptly upon demand for any legal or other expenses reasonably incurred
by that Underwriter, director, officer, employee or controlling person in connection with
investigating or defending or preparing to defend against any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the Company shall
not be liable in any such case to the extent that any such loss, claim, damage, liability or
action arises out of, or is based upon, any untrue statement or alleged untrue statement or
omission or alleged omission made in the Preliminary Prospectus, the Registration Statement,
the Prospectus, any Issuer Free Writing Prospectus or in any such amendment or supplement
thereto or in any Permitted Issuer Information, any Non-Prospectus Road Show or any Blue Sky
Application, in reliance upon and in conformity with written information concerning such
Underwriter furnished to the Company by such Underwriter or through the Representatives by
or on behalf of any Underwriter specifically for inclusion therein, which information
consists solely of the information specified in Section 8(e). The foregoing indemnity
agreement is in addition to any liability which the Company may otherwise have to any
Underwriter or to any director, officer, employee or controlling person of that Underwriter.
(b) Each Underwriter, severally and not jointly, shall indemnify and hold harmless the
Company, its directors, officers and employees, and each person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act, from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof, to which the
Company or any such director, officer, employee or controlling person may become subject,
under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or
action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement
of a material fact contained in any Preliminary Prospectus,
22
the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in
any amendment or supplement thereto or in any Non-Prospectus Road Show or Blue Sky
Application, or (ii) the omission or alleged omission to state in any Preliminary
Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus
or in any amendment or supplement thereto or in any Non-Prospectus Road Show or Blue Sky
Application, any material fact required to be stated therein or necessary to make the
statements therein not misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information concerning such Underwriter furnished to the
Company by an Underwriter or through the Representatives by or on behalf of that Underwriter
specifically for inclusion therein, which information is limited to the information set
forth in Section 8(e) and shall reimburse the Company and any such director, officer,
employee or controlling person in connection with investigating or defending or preparing to
defend against any such loss, claim, damage, liability or action as such expenses are
incurred. The foregoing indemnity agreement is in addition to any liability that any
Underwriter may otherwise have to the Company or any such director, officer, employee or
controlling person.
(c) Promptly after receipt by an indemnified party under this Section 8 of notice of
any claim or the commencement of any action, the indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under this Section 8, notify
the indemnifying party in writing of the claim or the commencement of that action; provided,
however, that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has been materially
prejudiced by such failure and, provided, further, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have to an
indemnified party otherwise than under this Section 8. If any such claim or action shall be
brought against an indemnified party, and it shall notify the indemnifying party thereof,
the indemnifying party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume the defense
thereof with counsel reasonably satisfactory to the indemnified party. After notice from
the indemnifying party to the indemnified party of its election to assume the defense of
such claim or action, the indemnifying party shall not be liable to the indemnified party
under this Section 8 for any legal or other expenses subsequently incurred by the
indemnified party in connection with the defense thereof; provided, however, that the
indemnified party shall have the right to employ counsel to represent jointly the
indemnified party and those other indemnified parties and their respective directors,
officers, employees and controlling persons who may be subject to liability arising out of
any claim in respect of which indemnity may be sought under this Section 8 if (i) the
indemnified party and the indemnifying party shall have so mutually agreed; (ii) the
indemnifying party has failed within a reasonable time to retain counsel reasonably
satisfactory to the indemnified party; (iii) the indemnified party and its directors,
officers, employees and controlling persons shall have reasonably concluded that there may
be legal defenses available to them that are different from or in addition to those
available to the indemnifying party; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both the indemnified parties or their respective
directors, officers, employees or controlling persons, on the one hand, and the indemnifying
party,
23
on the other hand, and representation of both sets of parties by the same counsel would
be inappropriate due to actual or potential differing interests between them, and in any
such event the fees and expenses of one such separate counsel (in addition to any local
counsel) shall be paid by the indemnifying party. No indemnifying party shall (i) without
the prior written consent of the indemnified parties (which consent shall not be
unreasonably withheld, conditioned or delayed), settle or compromise or consent to the entry
of any judgment with respect to any pending or threatened claim, action, suit or proceeding
in respect of which indemnification or contribution may be sought hereunder (whether or not
the indemnified parties are actual or potential parties to such claim or action) unless such
settlement, compromise or consent includes an unconditional release of each indemnified
party from all liability arising out of such claim, action, suit or proceeding and does not
include any findings of fact or admissions of fault or culpability as to the indemnified
party, or (ii) be liable for any settlement of any such action effected without its written
consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if
settled with the consent of the indemnifying party or if there be a final judgment for the
plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless
any indemnified party from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall
have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel as contemplated hereof, the indemnifying party agrees that it shall be
liable for any settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 30 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified
party in accordance with such request prior to the date of such settlement.
(d) If the indemnification provided for in this Section 8 shall for any reason be
unavailable to or insufficient to hold harmless an indemnified party under Section 8(a),
8(b) or 8(c) in respect of any loss, claim, damage or liability, or any action in respect
thereof, referred to therein, then each indemnifying party shall, in lieu of indemnifying
such indemnified party, contribute to the amount paid or payable by such indemnified party
as a result of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits received by the
Company, on the one hand, and the Underwriters, on the other, from the offering of the Stock
or (ii) if the allocation provided by clause (i) above is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to
in clause (i) above but also the relative fault of the Company, on the one hand, and the
Underwriters, on the other, with respect to the statements or omissions that resulted in
such loss, claim, damage or liability, or action in respect thereof, as well as any other
relevant equitable considerations. The relative benefits received by the Company, on the
one hand, and the Underwriters, on the other, with respect to such offering shall be deemed
to be in the same proportion as the total net proceeds from the offering of the Stock
purchased under this Agreement (before deducting expenses) received by the Company, as set
forth in the table on the cover page of the Prospectus, on the one hand, and the total
underwriting discounts and commissions received by the Underwriters with respect to the
shares of the Stock purchased under this Agreement, as set forth in the table on the cover
page of the Prospectus, on the other hand. The relative fault shall be
24
determined by reference to, among other things, 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 Company or 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 Company and the Underwriters agree that it would
not be just and equitable if contributions pursuant to this Section 8(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 that 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 loss, claim, damage or liability, or action in respect thereof,
referred to above in this Section 8(d) shall be deemed to include, for purposes of this
Section 8(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 8(d), no Underwriter shall be required to contribute any amount
in excess of the amount by which the total price of the Stock underwritten by it and offered
to the public exceeds the amount of any damages that such Underwriter has otherwise paid or
become liable to pay by reason of any untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to
contribute as provided in this Section 8(d) are several in proportion to their respective
underwriting obligations and not joint.
(e) The Underwriters severally confirm that the statements regarding delivery of shares
by the Underwriters set forth on the cover page of, and the concession and reallowance
figures and the paragraph relating to stabilization by the Underwriters appearing under the
caption “Underwriting” in, the most recent Preliminary Prospectus and the Prospectus are
correct and the Company acknowledges and agrees that such statements constitute the only
information concerning such Underwriters furnished in writing to the Company by or on behalf
of the Underwriters specifically for inclusion in any Preliminary Prospectus, the
Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any
amendment or supplement thereto or in any Non-Prospectus Road Show.
(f) Without limitation of and in addition to its obligations under the other paragraphs
of this Section 8, the Company agrees to indemnify and hold harmless the Independent
Underwriter, its directors, officers and employees and each person who controls the
Independent Underwriter within the meaning of Section 15 of the Securities Act from and
against any and all loss, claim, damage or liability, joint or several, or any action in
respect thereof (including, but not limited to, any loss, claim, damage, liability or action
relating to purchases and sales of Stock) to which the Independent Underwriter, its
directors, officers, employees or controlling persons may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises
out of, or is based upon, the Independent Underwriter acting as a “qualified independent
underwriter” (within the meaning of NASD Conduct Rule 2720) in connection with the offering
contemplated by this Agreement, and agrees to reimburse each such indemnified party promptly
upon demand for any legal or other expenses reasonably incurred by them
25
in connection with investigating or defending or preparing to defend any such loss,
claim, damage, liability or action; provided, however, that the Company shall not be liable
in any such case to the extent that it is determined in a final judgment by a court of
competent jurisdiction that such loss, claim, damage, liability or action resulted directly
from the gross negligence or willful misconduct of the Independent Underwriter. The
relative benefits received by the Independent Underwriter with respect to the offering
contemplated by this Agreement shall, for purposes of Section 8(d), be deemed to be equal to
the compensation received by the Independent Underwriter for acting in such capacity. In
addition, notwithstanding the provisions of Section 8(d), the Independent Underwriter shall
not be required to contribute any amount in excess of the compensation received by the
Independent Underwriter for acting in such capacity.
9. Defaulting Underwriters. If, on any Delivery Date, any Underwriter defaults in the
performance of its obligations under this Agreement, the remaining non-defaulting Underwriters
shall be obligated to purchase the Stock that the defaulting Underwriter agreed but failed to
purchase on such Delivery Date in the respective proportions which the number of shares of the Firm
Stock set forth opposite the name of each remaining non-defaulting Underwriter in Schedule
1 hereto bears to the total number of shares of the Firm Stock set forth opposite the names of
all the remaining non-defaulting Underwriters in Schedule 1 hereto; provided, however, that
the remaining non-defaulting Underwriters shall not be obligated to purchase any of the Stock on
such Delivery Date if the total number of shares of the Stock that the defaulting Underwriter or
Underwriters agreed but failed to purchase on such date exceeds 10% of the total number of shares
of the Stock to be purchased on such Delivery Date, and any remaining non-defaulting Underwriter
shall not be obligated to purchase more than 110% of the number of shares of the Stock that it
agreed to purchase on such Delivery Date pursuant to the terms of Section 2. If the foregoing
maximums are exceeded, the remaining non-defaulting Underwriters, or those other underwriters
satisfactory to the Representatives who so agree, shall have the right, but shall not be obligated,
to purchase, in such proportion as may be agreed upon among them, all the Stock to be purchased on
such Delivery Date. If the remaining Underwriters or other underwriters satisfactory to the
Representatives do not elect to purchase the shares that the defaulting Underwriter or Underwriters
agreed but failed to purchase on such Delivery Date, this Agreement (or, with respect to any Option
Stock Delivery Date, the obligation of the Underwriters to purchase, and of the Company to sell,
the Option Stock) shall terminate without liability on the part of any non-defaulting Underwriter
or the Company, except that the Company will continue to be liable for the payment of expenses to
the extent set forth in Sections 6 and 11. As used in this Agreement, the term “Underwriter”
includes, for all purposes of this Agreement unless the context requires otherwise, any party not
listed in Schedule 1 hereto that, pursuant to this Section 9, purchases Stock that a
defaulting Underwriter agreed but failed to purchase.
Nothing contained herein shall relieve a defaulting Underwriter of any liability it may have
to the Company for damages caused by its default. If other Underwriters are obligated or agree to
purchase the Stock of a defaulting or withdrawing Underwriter, either the Representatives or the
Company may postpone the Delivery Date for up to seven full business days in order to effect any
changes that in the opinion of counsel for the Company or counsel for the Underwriters may be
necessary in the Registration Statement, the Prospectus or in any other document or arrangement.
26
10. Termination. The obligations of the Underwriters hereunder may be terminated by the
Representatives by notice given to and received by the Company prior to delivery of and payment for
the Firm Stock if, prior to that time, any of the events described in Sections 7(k), 7(l) and 7(m)
shall have occurred or if the Underwriters shall decline to purchase the Stock for any reason
permitted under this Agreement.
11. Reimbursement of Underwriters’ Expenses. If (a) the Company shall fail to tender the
Stock for delivery to the Underwriters for any reason or (b) the Underwriters shall decline to
purchase the Stock for any reason permitted under this Agreement (other than pursuant to Section
9), the Company will reimburse the Underwriters for all reasonable out-of-pocket expenses
(including fees and disbursements of counsel) incurred by the Underwriters in connection with this
Agreement and the proposed purchase of the Stock, and upon demand the Company shall pay the full
amount thereof to the Representatives. If this Agreement is terminated pursuant to Section 9 by
reason of the default of one or more Underwriters, the Company shall not be obligated to reimburse
any Underwriter on account of those expenses.
12. Research Analyst Independence. The Company acknowledges that the Underwriters’ research
analysts and research departments are required to be independent from their respective investment
banking divisions and are subject to certain regulations and internal policies, and that such
Underwriters’ research analysts may hold views and make statements or investment recommendations
and/or publish research reports with respect to the Company and/or the offering that differ from
the views of their respective investment banking divisions. The Company hereby waives and
releases, to the fullest extent permitted by law, any claims that the Company may have against the
Underwriters with respect to any conflict of interest that may arise from the fact that the views
expressed by their independent research analysts and research departments may be different from or
inconsistent with the views or advice communicated to the Company by such Underwriters’ investment
banking divisions. The Company acknowledges that each of the Underwriters is a full service
securities firm and as such from time to time, subject to applicable securities laws, may effect
transactions for its own account or the account of its customers and hold long or short positions
in debt or equity securities of the companies that may be the subject of the transactions
contemplated by this Agreement.
13. No Fiduciary Duty. The Company acknowledges and agrees that in connection with this
offering, sale of the Stock or any other services the Underwriters may be deemed to be providing
hereunder, notwithstanding any preexisting relationship, advisory or otherwise, between the parties
or any oral representations or assurances previously or subsequently made by the Underwriters: (i)
no fiduciary or agency relationship between the Company and any other person, on the one hand, and
the Underwriters, on the other, exists; (ii) the Underwriters are not acting as advisors, expert or
otherwise, to the Company, including, without limitation, with respect to the determination of the
public offering price of the Stock, and such relationship between the Company, on the one hand, and
the Underwriters, on the other, is entirely and solely commercial, based on arms-length
negotiations; (iii) any duties and obligations that the Underwriters may have to the Company shall
be limited to those duties and obligations specifically stated herein; and (iv) the Underwriters
and their respective affiliates may have interests that differ from those of the Company. The
Company hereby waives any claims that the Company may have against the Underwriters with respect to
any breach of fiduciary duty in connection with this offering.
27
14. Notices, Etc. All statements, requests, notices and agreements hereunder shall be in
writing, and:
(a) if to the Underwriters, shall be delivered or sent by mail or facsimile
transmission to Barclays Capital Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Syndicate Registration (Fax: 000-000-0000), with a copy, in the case of
any notice pursuant to Section 8(e), to the Director of Litigation, Office of the
General Counsel, Barclays Capital Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000; and
(b) if to the Company, shall be delivered or sent by mail or facsimile
transmission to the address of the Company set forth in the Registration Statement,
Attention: Xxxxxx X. Xxxxx, III, Esq. (Fax: 000-000-0000).
Any such statements, requests, notices or agreements shall take effect at the time of receipt
thereof. The Company shall be entitled to act and rely upon any request, consent, notice or
agreement given or made on behalf of the Underwriters by Barclays Capital Inc. on behalf of the
Representatives.
15. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the Underwriters, the Company, and their respective successors. This Agreement
and the terms and provisions hereof are for the sole benefit of only those persons, except that (A)
the representations, warranties, indemnities and agreements of the Company in this Agreement shall
also be deemed to be for the benefit of the directors, officers and employees of the Underwriters
and each person or persons, if any, who control any Underwriter within the meaning of Section 15 of
the Securities Act and (B) the indemnity agreement of the Underwriters contained in Section 8(b) of
this Agreement shall be deemed to be for the benefit of the directors of the Company, the officers
of the Company who have signed the Registration Statement and any person controlling the Company
within the meaning of Section 15 of the Securities Act. Nothing in this Agreement is intended or
shall be construed to give any person, other than the persons referred to in this Section 15, any
legal or equitable right, remedy or claim under or in respect of this Agreement or any provision
contained herein.
16. Survival. The respective indemnities, representations, warranties and agreements of the
Company and the Underwriters contained in this Agreement or made by or on behalf of them,
respectively, pursuant to this Agreement, shall survive the delivery of and payment for the Stock
and shall remain in full force and effect, regardless of any investigation made by or on behalf of
any of them or any person controlling any of them.
17. Definition of the Terms “Business Day” and “Subsidiary”. For purposes of this Agreement,
(a) “business day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on
which banking institutions in New York are generally authorized or obligated by law or executive
order to close and (b) “subsidiary” has the meaning set forth in Rule 405.
18. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.
28
19. Counterparts. This Agreement may be executed in one or more counterparts and, if
executed in more than one counterpart, the executed counterparts shall each be deemed to be an
original but all such counterparts shall together constitute one and the same instrument.
20. Headings. The headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.
29
If the foregoing correctly sets forth the agreement between the Company and the Underwriters,
please indicate your acceptance in the space provided for that purpose below.
Very truly yours, STONE ENERGY CORPORATION |
||||
By: | /s/ Xxxxxxx X. Beer | |||
Name: | Xxxxxxx X. Beer | |||
Title: | Senior Vice President and Chief Financial Officer |
30
Accepted:
BARCLAYS CAPITAL INC.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
CAPITAL ONE SOUTHCOAST, INC.
TUDOR, PICKERING, XXXX & CO. SECURITIES, INC.
XXXXXXX XXXX & COMPANY L.L.C.
XXXXXX XXXX INCORPORATED
XXXXXXX & COMPANY INTERNATIONAL
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
CAPITAL ONE SOUTHCOAST, INC.
TUDOR, PICKERING, XXXX & CO. SECURITIES, INC.
XXXXXXX XXXX & COMPANY L.L.C.
XXXXXX XXXX INCORPORATED
XXXXXXX & COMPANY INTERNATIONAL
For themselves and as Representatives
of the several Underwriters named
in Schedule 1 hereto
of the several Underwriters named
in Schedule 1 hereto
By BARCLAYS CAPITAL INC.
By:
|
/s/ Xxxxxxxx Xxxx
|
|||
By
|
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED | |||
By: |
/s/ Xxxxxxx Xxxxx | |||
By
|
TUDOR, PICKERING, XXXX & CO. SECURITIES, INC., | |||
solely in its capacity as Independent Underwriter | ||||
By:
|
/s/ Xxxxxxx Xxxx
|
SCHEDULE 1
Number of Shares | ||||
Underwriters | of Firm Stock | |||
Barclays Capital Inc. |
3,150,000 | |||
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated |
2,100,000 | |||
Capital One Southcoast, Inc. |
420,000 | |||
Tudor, Pickering, Xxxx & Co. Securities, Inc. |
420,000 | |||
Xxxxxxx Xxxx & Company L.L.C. |
385,000 | |||
Xxxxxx Xxxx Incorporated |
315,000 | |||
Xxxxxxx & Company International |
210,000 | |||
Total |
7,000,000 | |||
SCHEDULE 2
ISSUER FREE WRITING PROSPECTUSES
None.
SCHEDULE 3
PERSONS DELIVERING LOCK-UP AGREEMENTS
Directors:
1. Xxxxxx X. Xxxxxxxx
2. Xxxxxx X. Christmas
3. X.X. Xxxxxxxxx
4. Xxxxx X. Xxxxxxx
5. Xxxx X. Xxxxxxx
6. Xxxxxxx X. Xxxxxxxxxx
7. Xxxxxx X. Xxxxxx
8. Xxx X. Xxxxxxxx
9. Xxxxx X. Xxxxxxx
Officers:
1. Xxxxx X. Xxxxx
2. Xxxxxxx X. Beer
3. Xxxxxx X. Xxxxx, III
4. X. X. Xxxxxxxx
5. J. Xxxx Xxxxxxx
6. Xxxxxxx X. Xxxxx
7. Xxxxxx X. Xxxxxx, Xx.
8. Xxxxxxxx X. Xxxxxxx
SCHEDULE 4
ORALLY CONVEYED PRICING INFORMATION
1. Public offering price: $8.00 per share.
2. Number of shares offered: 7,000,000