SUBURBAN PROPANE PARTNERS, L.P. 2,200,000 Common Units Representing Limited Partner Interests UNDERWRITING AGREEMENT
Exhibit 1.1
Execution Version
Execution Version
SUBURBAN PROPANE PARTNERS, L.P.
2,200,000 Common Units
Representing Limited Partner Interests
Representing Limited Partner Interests
August 11, 2009
Xxxxx Fargo Securities, LLC
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Citigroup Global Markets Inc.
Xxxxxxx, Sachs & Co.
As Representatives of the several Underwriters
named in Schedule I
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Citigroup Global Markets Inc.
Xxxxxxx, Sachs & Co.
As Representatives of the several Underwriters
named in Schedule I
c/o Wells Fargo Securities, LLC
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
The undersigned, Suburban Propane Partners, L.P., a Delaware limited partnership (the
“Partnership”), and Suburban Propane, L.P., a Delaware limited partnership (the
“Operating Partnership”), hereby confirm their agreement as set forth below with the
several Underwriters named in Schedule I hereto (the “Underwriters”), for whom Xxxxx Fargo
Securities, LLC, Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, Citigroup Global Markets Inc.
and Xxxxxxx, Sachs & Co. are acting as representatives (the “Representatives”).
The Partnership and the Operating Partnership are collectively referred to herein as the
“Suburban Parties.” The Partnership, the Operating Partnership, Suburban Energy Services
Group LLC, a Delaware limited liability company and general partner of both the Partnership and the
Operating Partnership (the “General Partner”), and the direct and indirect subsidiaries of
the Partnership listed in Schedule III (the “Operating Subsidiaries”) are referred
to collectively herein as the “Operating Entities.” The Partnership, the Operating
Partnership, the General Partner, the Operating Subsidiaries and the Non-Operating Subsidiaries (as
defined in Section 4(s)) are referred to collectively herein as the “Partnership
Entities.”
In connection with the issuance of the Units (as defined below), the Partnership and its
wholly owned subsidiary, Suburban Energy Finance Corp., a Delaware corporation (“SEFC”),
have commenced a cash tender offer (the “Tender Offer”) for up to $175 million (the
“Tender Cap”) of its 6.875% senior notes due December 2013 (the “2013 Notes”),
which were jointly issued by the Partnership and SEFC (provided, that the Partnership reserves the
right to increase the Tender Cap at any time) upon the terms and subject to the conditions set
forth in that certain Offer to Purchase dated as of August 10, 2009, including all information
incorporated by
reference therein and exhibits, appendices and attachments thereto, as amended, modified or
supplemented from time to time. The net proceeds from the sale of the Units will be used to fund
the Tender Offer, repurchase any 2013 Notes tendered in the Tender Offer and pay related fees and
expenses. In the event that the Tender Offer is not successful or abandoned, the net proceeds from
the sale of the Units will be used for general partnership purposes.
1. Description of Common Units. The Partnership proposes to issue and sell to the
Underwriters 2,200,000 common units (the “Firm Units”) representing limited partner
interests in the Partnership (the “Common Units”). The Partnership further proposes to
grant to the Underwriters the right to purchase up to an additional 330,000 Common Units (the
“Option Units”) under certain circumstances as provided in Section 3 of this Agreement.
The Firm Units and the Option Units are herein sometimes referred to as the “Units” and are
more fully described in the Disclosure Package and the Final Prospectus (each hereinafter defined).
2. Purchase, Sale and Delivery of the Firm Units. On the basis of the representations,
warranties and agreements herein contained, but subject to the terms and conditions herein set
forth, (a) the Partnership agrees to sell to the Underwriters, and each such Underwriter agrees,
severally and not jointly, to purchase from the Partnership, at a purchase price of $39.75 per
unit, the number of Firm Units set forth opposite the name of such Underwriter in Schedule I hereto
and (b) the Partnership agrees to sell to the Underwriters, and each such Underwriter agrees,
severally and not jointly, to purchase from the Partnership, any additional number of Option Units
that such Underwriter may become obligated to purchase pursuant to Section 3 hereof.
Delivery of the Firm Units will be in book-entry form through the facilities of The Depository
Trust Company, New York, New York (“DTC”). Delivery of the documents required by Section 6
hereof with respect to the Units shall be made available at or prior to 9:00 a.m. New York City
time on August 14, 2009 at the offices of Proskauer Rose LLP, 0000 Xxxxxxxx, Xxx Xxxx, Xxx Xxxx
00000 or at such other place as may be agreed upon between the Representatives and the Partnership
(the “Place of Closing”), or at such other time and date not later than five full business
days thereafter as the Representatives and the Partnership may agree, such time and date of payment
and delivery being herein called the “Initial Delivery Date.” 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 the Underwriters hereunder.
The Partnership will deliver the Firm Units to the Underwriters, against payment of the
purchase price therefor in Federal (same day) Funds by wire transfer to an account at the bank
specified by the Partnership on or before the Initial Delivery Date.
The Partnership will cause its transfer agent to deposit the Firm Units pursuant to the Full
Fast Delivery Program of the DTC.
It is understood that the Underwriters propose to offer the Units to the public upon the terms
and conditions set forth in the Disclosure Package and the Final Prospectus.
3. Purchase, Sale and Delivery of the Option Units. The Partnership hereby grants the option
to the Underwriters to purchase from the Partnership up to 330,000 Option
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Units, on the same terms and conditions as the Firm Units. No Option Units shall be sold or
delivered unless the Firm Units previously have been, or simultaneously are, sold and delivered and
such Option Units shall be sold at the same price as the Firm Units. Option Units may be purchased
as provided in this Section 3 solely for the purpose of covering over-allotments made in connection
with the offering of the Firm Units.
The option is exercisable by the Representatives at any time, in whole or in part, and from
time to time, before the expiration 30 days from the date of the Final Prospectus (or, if such 30th
day shall be a Saturday or Sunday or a holiday, on the next day thereafter when the New York Stock
Exchange (the “NYSE”) is open for trading, for the purchase of all or part of the Option
Units covered thereby, by notice given by the Representatives to the Partnership in the manner
provided in Section 12 hereof, setting forth the number of Option Units as to which the
Underwriters are exercising the option, and the date of delivery of said Option Units, which date
shall not be less than one business day, or more than five business days, after such notice unless
otherwise agreed to by the Partnership and the Representatives. The Underwriters may terminate the
option at any time, as to any unexercised portion thereof, by notice given by the Representatives
to the Partnership to such effect. The percentage of Option Units to be purchased by each
Underwriter shall be the same as the percentage of Firm Units purchased by such Underwriter.
The Underwriters shall make such allocation of the Option Units among them as may be required
to eliminate purchases of fractional Units.
Delivery of Option Units will be in book-entry form through the facilities of DTC. Delivery of
the documents required by Section 6 hereof with respect to the Option Units shall be made at the
Place of Closing at or prior to 9:00 a.m. New York City time on the date designated in the notice
given by the Representatives as provided above, or at such other time and date as the
Representatives and the Partnership may agree (which may be the same as the Initial Delivery Date),
such time and date of payment and delivery being herein called the “Option Unit Delivery
Date.” The Initial Delivery Date and any Option Unit Delivery Date are sometimes each referred
to as a “Delivery Date.” 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 the Underwriters
hereunder. On each Option Unit Delivery Date, the Suburban Parties shall provide the Underwriters
such representations, warranties, agreements, opinions, letters, certificates and covenants with
respect to Option Units as are required to be delivered on the Initial Delivery Date with respect
to the Firm Units.
The Partnership will cause its transfer agent to deposit Option Units pursuant to the Full
Fast Delivery Program of the DTC.
4. Representations, Warranties and Agreements of the Suburban Parties. The Suburban Parties
jointly and severally represent and warrant to and agree with each Underwriter as set forth below:
(a) Registration Statement/Prospectus. A shelf registration statement (Registration No.
333-161221) on Form S-3 to be used in connection with the public offering and sale of the
Units, including a related Basic Prospectus (as defined below), (i)
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has been prepared by the Partnership pursuant to and in conformity with the
requirements of the Securities Act of 1933, as amended (the “1933 Act”), and the
rules and regulations thereunder (the “1933 Act Rules and Regulations”) of the
United States Securities and Exchange Commission (the “Commission”), (ii) has been
filed with the Commission under the 1933 Act, and (iii) is effective under the 1933 Act. The
Partnership may have filed with the Commission, as part of an amendment to the Registration
Statement or pursuant to Rule 424(b), one or more Preliminary Prospectuses (as defined
below) relating to the Securities, each of which has previously been furnished to the
Representatives. The Partnership will file with the Commission a Final Prospectus (as
defined below) in accordance with Rule 424(b). As filed, such Final Prospectus shall contain
all information required by the 1933 Act and the 1933 Act Rules and Regulations, except to
the extent the Representatives shall agree in writing to a modification, shall be in all
substantive respects in the form furnished to the Representatives prior to the Execution
Time or, to the extent not completed at the Execution Time, shall contain only such specific
additional information and other changes (beyond that contained in the Basic Prospectus and
any Preliminary Prospectus) as the Partnership has advised the Representatives, prior to the
Execution Time, will be included or made therein. Copies of such Registration Statement,
including any amendments thereto, each related Preliminary Prospectus contained therein, and
the exhibits, financial statements and schedules thereto have heretofore been delivered by
the Partnership to the Underwriters. As used in this Agreement:
(i) “Basic Prospectus” shall mean the prospectus referred to in
paragraph 4(a) above contained in the Registration Statement at the Effective Date.
(ii) “Disclosure Package” shall mean, as of the Execution Time, the
most recent Preliminary Prospectus, together with (A) any Issuer Free Writing
Prospectus filed by the Partnership on or before the Execution Time and identified
on Schedule II hereto, and (B) the pricing information identified on Schedule II
hereto.
(iii) “Effective Date” shall mean any date as of which any part of the
Registration Statement became, or is deemed to have become, effective under the 1933
Act in accordance with the 1933 Act Rules and Regulations.
(iv) “Execution Time” shall mean the date and time (8:15 a.m. New York
City time) that this Agreement is executed and delivered by the parties hereto.
(v) “Final Prospectus” shall mean the prospectus supplement relating to
the Units that was first filed pursuant to Rule 424(b) after the Execution Time,
together with the Basic Prospectus.
(vi) “Issuer Free Writing Prospectus” means each “free writing
prospectus” (as defined in Rule 405 of the 1933 Act Rules and Regulations)
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prepared by or on behalf of the Partnership or used or referred to by the
Partnership in connection with the offering of the Units.
(vii) “Preliminary Prospectus” shall mean any preliminary prospectus
supplement to the Basic Prospectus which describes the Units and the offering
thereof and is used prior to filing of the Final Prospectus, together with the Basic
Prospectus.
(viii) “Registration Statement” shall mean the registration statement
referred to in paragraph 4(a) above, including exhibits and financial statements and
any prospectus supplement relating to the Units that is filed with the Commission
pursuant to Rule 424(b) and deemed part of such registration statement pursuant to
Rule 430B, as amended at the Execution Time and, in the event any post-effective
amendment thereto or any Rule 462(b) Registration Statement becomes effective prior
to the Initial Delivery Date, shall also mean such registration statement as so
amended or such Rule 462(b) Registration Statement, as the case may be.
(ix) “Rule 462(b) Registration Statement” shall mean a registration
statement and any amendments thereto filed pursuant to Rule 462(b) relating to the
offering covered by the registration statement referred to in Section 4(a) hereof.
Any reference to any Preliminary Prospectus, the Disclosure Package or the Basic
Prospectus shall be deemed to refer to and include any documents incorporated by reference
therein pursuant to Form S-3 under the 1933 Act as of the date of such Preliminary
Prospectus or the Basic Prospectus, as the case may be, or in the case of the Disclosure
Package, as of the Execution Time. 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) on or prior to the date hereof. Any reference to
any amendment or supplement to any Preliminary Prospectus or the Basic Prospectus shall be
deemed to refer to and include any document filed under the Securities Exchange Act of 1934,
as amended (the “1934 Act”), after the date of such Preliminary Prospectus or the
Basic Prospectus, as the case may be, and incorporated by reference in such Preliminary
Prospectus or the Basic Prospectus, as the case may be; and any reference to any amendment
to the Registration Statement shall be deemed to include the most recent annual report of
the Partnership on Form 10-K filed with the Commission pursuant to Section 13(a) or 15(d) of
the 1934 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 Basic Prospectus or suspending the effectiveness of the
Registration Statement, and no proceeding or examination for such purpose has been
instituted or, to the Partnership’s knowledge, threatened by the Commission. The Commission
has not notified the Partnership of any objection to the use of the form of the Registration
Statement.
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(b) Well-Known Seasoned Issuer. The Registration Statement is an “automatic shelf
registration statement” (as defined in Rule 405 of the 0000 Xxx) and was filed not earlier
than the date that is three years prior to the applicable Delivery Date. As of the
determination date applicable to the Registration Statement (and any amendment thereof), the
Partnership is a “well-known seasoned issuer” (as defined in Rule 405).
(c) Ineligible Issuer. (i) At the time of the initial filing of the Registration
Statement and (ii) as of the Execution Time (with such date being used as the determination
date for purposes of this clause (ii)), the Partnership was not and is not an Ineligible
Issuer (as defined in Rule 405), without taking account of any determination by the
Commission pursuant to Rule 405 that it is not necessary that the Partnership be considered
an Ineligible Issuer.
(d) Continued Eligibility of Automatic Shelf Registration Statement. The Partnership
has not received from the Commission any notice pursuant to Rule 401(g)(2) of the 1933 Act
objecting to use of the automatic shelf registration statement form. If at any time when
Units remain unsold by the Underwriters the Partnership receives from the Commission a
notice pursuant to Rule 401(g)(2) or otherwise ceases to be eligible to use the automatic
shelf registration statement form, the Partnership will (i) promptly notify the
Representatives, (ii) promptly file a new registration statement or post-effective amendment
on the proper form relating to the Units, in a form satisfactory to the Representatives,
(iii) use its reasonable best efforts to cause such registration statement or post-effective
amendment to be declared effective as soon as practicable, and (iv) promptly notify the
Representatives of such effectiveness. The Partnership will take all other action necessary
to permit the public offering and sale of the Units to continue as contemplated in the
registration statement that was the subject of the Rule 401(g)(2) notice or for which the
Partnership has otherwise become ineligible. References herein to the Registration Statement
shall include such new registration statement or post-effective amendment, as the case may
be.
(e) Form of Documents. The Registration Statement complied and will comply in all
material respects on each Effective Date and on the applicable Delivery Date, and any
amendment to the Registration Statement filed after the date hereof will comply in all
material respects when filed, to the requirements of the 1933 Act and the 1933 Act Rules and
Regulations. The most recent Preliminary Prospectus complied, and the Final Prospectus will
comply, in all material respects when filed with the Commission pursuant to Rule 424(b) to
the requirements of the 1933 Act and the 1933 Act Rules and Regulations.
(f) No Material Misstatements or Omissions in the Registration Statement. The
Registration Statement did not, as of each 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, however, that the Partnership makes no
representations or warranties as to the information contained in or omitted from the
Registration Statement in reliance upon and in conformity with written information furnished
to the Partnership by or on behalf of the Underwriters specifically for inclusion in the
Registration Statement, it being understood and agreed that the only
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such information furnished by the Underwriters consists of the information described as
such in Section 13 hereof.
(g) No Material Misstatements or Omissions in the Final Prospectus. The Final
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 necessary in order to make the
statements therein, in light of the circumstances under which they were made, not
misleading; provided, however, that the Partnership makes no representations or warranties
as to the information contained in or omitted from the Final Prospectus in reliance upon and
in conformity with written information furnished to the Partnership by or on behalf of the
Underwriters specifically for inclusion in the Final Prospectus, it being understood and
agreed that the only such information furnished by the Underwriters consists of the
information described as such in Section 13 hereof.
(h) No Material Misstatements or Omissions in the Disclosure Package. The Disclosure
Package did not, as of the Execution Time, contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading; provided, however,
that the Partnership makes no representations or warranties as to the information contained
in or omitted from the Disclosure Package in reliance upon and in conformity with written
information furnished to the Partnership by or on behalf of the Underwriters specifically
for inclusion in the Disclosure Package, it being understood and agreed that the only such
information furnished by the Underwriters consists of the information described as such in
Section 13 hereof.
(i) Issuer Free Writing Prospectus. 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 Disclosure Package as of the Execution Time, did not contain an
untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading. The foregoing sentence does not apply to statements in or omissions from any
Issuer Free Writing Prospectus based upon and in conformity with written information
furnished to the Partnership by or on behalf of the Underwriters specifically for inclusion
in the Registration Statement, the Disclosure Package, any Issuer Free Writing Prospectus or
the Final Prospectus (or any supplement thereto), it being understood and agreed that the
only such information furnished by the Underwriters consists of the information described as
such in Section 13 hereof. Each Issuer Free Writing Prospectus (including, without
limitation, any road show that is a free writing prospectus under Rule 433) does not include
any information that conflicts in any material respect with the information contained in the
Disclosure Package, including any document incorporated by reference therein that has not
been superseded or modified.
(j) Other Sales. The Partnership has not sold or issued any Common Units during the
six-month period preceding the date of the Initial Delivery Date, other than pursuant to
acquisitions, employee benefit plans, qualified options plans or other employee compensation
plans or pursuant to outstanding options, rights or warrants described in the Disclosure
Package and the Final Prospectus.
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(k) Formation and Due Qualification. Each of the Operating Entities has been duly
formed or incorporated and is validly existing as a limited partnership, limited liability
company or corporation, as the case may be, in good standing under the laws of its
respective jurisdiction of formation or incorporation with all necessary power and authority
to own or lease its properties and to conduct its business, in all material respects as
described in the Disclosure Package and the Final Prospectus (and any amendments or
supplements thereto). Each of the Partnership Entities is, and at each Delivery Date will
be, duly registered or qualified to do business and is in good standing as a foreign limited
partnership, foreign limited liability company or foreign corporation, as the case may be,
in each jurisdiction in which its ownership or lease of property or the conduct of its
businesses requires such registration or qualification, except where the failure so to
register or qualify would not (i) have a material adverse effect on the position (financial
or other), partners’, members’ or stockholders’ equity, results of operations, business or
prospects of the Partnership Entities taken as a whole (a “Material Adverse
Effect”), or (ii) subject the limited partners of the Partnership to any material
liability or disability, which states of formation and qualification are set forth next to
the name of each of the Partnership Entities listed on Schedule III and Schedule
IV to this Agreement.
(l) Ownership of the General Partner Interest in the Partnership. The General Partner
is the sole general partner of the Partnership with a non-economic general partner interest
in the Partnership. Such general partner interest has been duly authorized and validly
issued in accordance with the Third Amended and Restated Agreement of Limited Partnership of
the Partnership (as amended, the “Partnership Agreement”) and is fully paid (to the
extent required under the Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware
Revised Uniform Limited Partnership Act (the “Delaware LP Act”)), and the General
Partner owns such general partner interest free and clear of all liens, encumbrances (except
restrictions on transferability described in the Disclosure Package and the Final
Prospectus), security interests, equities, charges or claims, except as described in the
Disclosure Package and the Final Prospectus and except for liens created by, or pursuant to,
or permitted under, that certain Credit Agreement, dated June 26, 2009, by and among the
Partnership, the Operating Partnership and the lenders party thereto, the various pledge,
assignment and security agreements and other agreements and instruments entered into in
connection therewith (“Permitted Liens”).
(m) Capitalization. At each Delivery Date (assuming that the Underwriters do not
purchase the Option Units), after giving effect to the issuance of the Firm Units, the
issued and outstanding limited partner interests of the Partnership will consist of
34,997,020 Common Units. All outstanding Common Units and the limited partner interests
represented thereby have been duly authorized and validly issued in accordance with the
Partnership Agreement and are fully paid (to the extent required under the Partnership
Agreement) and nonassessable (except as such nonassessability may be affected by Sections
17-303, 17-607 and 17-804 of the Delaware LP Act), except as described in the Disclosure
Package and the Final Prospectus and except for Permitted Liens.
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(n) Ownership of Lock-Up Units. The General Partner owns 784 Common Units (all such
Common Units being referred to herein as the “Lock-Up Units”) as described in the
Disclosure Package and the Final Prospectus; all of such Lock-Up Units and the limited
partner interests represented thereby have been duly authorized and validly issued in
accordance with the Partnership Agreement, and are fully paid (to the extent required under
the Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act); and the General
Partner owns the Lock-Up Units free and clear of all liens, encumbrances (except
restrictions on transferability as described in the Disclosure Package and the Final
Prospectus), security interests, equities, charges or claims, except as described in the
Disclosure Package and the Final Prospectus and except for Permitted Liens.
(o) Valid Issuance of the Units. At the Initial Delivery Date or the Option Unit
Delivery Date, as the case may be, the Firm Units or the Option Units, as the case may be,
and the limited partner interests represented thereby, will be duly authorized in accordance
with the Partnership Agreement and, when issued and delivered to the Underwriters against
payment therefor in accordance with the terms hereof, will be validly issued, fully paid (to
the extent required under the Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP
Act).
(p) Ownership of Limited Liability Company Interests in the General Partner. Xxxx X.
Xxxxxxxxx (the “Sole Member”) owns 100% of the outstanding limited liability company
interests in the General Partner; all of such interests have been duly authorized and
validly issued in accordance with the Second Amended and Restated Operating Agreement of the
General Partner (the “General Partner LLC Agreement”) and are fully paid (to the
extent required under the General Partner LLC Agreement) and nonassessable (except as such
nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware Limited
Liability Company Act (the “Delaware LLC Act”)), and the Sole Member owns such
interests free and clear of all liens, encumbrances (except as described in the Disclosure
Package and the Final Prospectus), security interests, equities, charges or claims, except
as described in the Disclosure Package and the Final Prospectus and except for Permitted
Liens.
(q) Ownership of Partnership Interests in the Operating Partnership. The General
Partner owns 100% of the outstanding general partner interests in the Operating Partnership,
the Partnership directly owns 99.9% of the outstanding limited partner interests in the
Operating Partnership and the Partnership indirectly owns 0.1% of the outstanding limited
partner interests in the Operating Partnership; all of such interests have been duly
authorized and validly issued in accordance with the Third Amended and Restated Agreement of
Limited Partnership of the Operating Partnership (as amended, the “Operating Partnership
LP Agreement”) and are fully paid (to the extent required under the Operating
Partnership LP Agreement) and nonassessable (except as such nonassessability may be affected
by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act), and the General Partner and
the Partnership own such interests free and clear of all liens, encumbrances (except as
described in the Disclosure Package and the Final
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Prospectus), security interests, equities, charges or claims, except as described in
the Disclosure Package and the Final Prospectus and except for Permitted Liens.
(r) Ownership of the Subsidiaries. The Partnership owns, directly or indirectly, 100%
of the limited liability company interests or capital stock, as the case may be, in each of
the Operating Subsidiaries free and clear of all liens, encumbrances (except as described in
the Disclosure Package and the Final Prospectus and except for Permitted Liens), security
interests, equities, charges and other claims. Such limited liability company interests or
capital stock, as the case may be, have been duly authorized and validly issued in
accordance with the limited liability company or charter documents, as the case may be, of
the respective Subsidiaries, and are fully paid (to the extent required under their
respective limited liability company agreement) and non-assessable (except as such
nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware LLC Act, in
the case of a Delaware limited liability company; Section 63.235 of the Oregon Revised
Statutes, in the case of a Oregon limited liability company; and Section 86.343 of the
Nevada Revised Statutes, in the case of a Nevada limited liability company). Except for
Suburban Plumbing New Jersey LLC, the Partnership owns, directly or indirectly, 100% of the
limited liability company interests, limited partner interests or capital stock, as the case
may be, in each of the Non-Operating Subsidiaries (as defined in Section 4(s)) free and
clear of all liens, encumbrances (except as described in the Disclosure Package and the
Final Prospectus and except for Permitted Liens), security interests, equities, charges and
other claims. Such limited liability company interests or capital stock, as the case may be,
have been duly authorized and validly issued in accordance with the limited liability
company or charter documents, as the case may be, of the respective Subsidiaries, and are
fully paid (to the extent required under their respective limited liability company
agreement) and non-assessable (except as such nonassessability may be affected by Sections
18-607 and 18-804 of the Delaware LLC Act, in the case of a Delaware limited liability
company; Section 63.235 of the Oregon Revised Statutes, in the case of a Oregon limited
liability company; and Section 86.343 of the Nevada Revised Statutes, in the case of a
Nevada limited liability company), except for such liens, encumbrances, security interests,
equities, charges and other claims, the existence of which, would not, individually or in
the aggregate, result in a Material Adverse Effect or materially impair the ability of the
Suburban Parties to perform their obligations under this Agreement.
(s) No Other Subsidiaries. The Partnership does not own or control directly or
indirectly, any corporation, association or other entity other than the subsidiaries listed
in Exhibit 21.1 to the Partnership’s Annual Report on Form 10-K for the most recent fiscal
year, such subsidiaries consisting of the Operating Partnership, the Operating Subsidiaries
and the subsidiaries listed on Schedule IV hereof (the “Non-Operating
Subsidiaries” and, together with the Operating Partnership and the Operating
Subsidiaries, the “Subsidiaries”). Neither the Partnership nor any of its
subsidiaries own, directly or indirectly, any equity or long-term debt securities of any
corporation, partnership, limited liability company, joint venture, association or other
entity, other than as set forth in Exhibit 21.1 to the Partnership’s Annual Report on Form
10-K for the most recent fiscal year. Other than its ownership of its general partner
interests and its limited partner interests in the Partnership and its general partner
interests in the
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Operating Partnership, the General Partner does not own, and as of each Delivery Date
will not own, directly or indirectly, any equity or long-term debt securities of any
corporation, partnership, limited liability company, joint venture, association or other
entity. The Non-Operating Subsidiaries, considered individually or in the aggregate as a
single subsidiary, do not constitute a “significant subsidiary” as defined in Rule 1-02 of
Regulation S-X.
(t) No Preemptive Rights, Registration Rights or Options. Except as described in the
Disclosure Package and the Final Prospectus, there are no options, warrants, preemptive
rights or other rights to subscribe for or to purchase, nor any restriction upon the voting
or transfer of, any capital stock or any partnership or limited liability company interests
in any Suburban Party, in each case pursuant to the bylaws, partnership agreement or limited
liability company agreement of such Partnership Entity (collectively, the
“Organizational Agreements”) or the certificate of limited partnership or formation
or incorporation, bylaws or other organizational documents of such Partnership Entity
(collectively, together with the Organizational Agreements, the “Organizational
Documents”) or any other agreement or instrument to which such Partnership Entity is a
party or by which it is bound. Except for any such rights as have been effectively waived,
neither the filing of the Registration Statement, the Preliminary Prospectus or the Final
Prospectus nor the offering or sale of the Units as contemplated by this Agreement gives
rise to any rights for or relating to the registration of any Common Units or other
securities of any of the Partnership Entities. Except as described in the Disclosure
Package and the Final Prospectus and for options granted pursuant to employee benefit plans,
qualified unit option plans or other employee compensation plans in effect as of the
Execution Time, there are no outstanding options or warrants to purchase any capital stock
or any partnership or limited liability company interests of any of the Partnership
Entities.
(u) Authority and Authorization. The Partnership has all requisite power and authority
to issue, sell and deliver the Units in accordance with and upon the terms and conditions
set forth in this Agreement, the Partnership Agreement, the Registration Statement, the
Disclosure Package and the Final Prospectus. At each Delivery Date, all corporate,
partnership and limited liability company action, as the case may be, required to be taken
by the Partnership Entities or any of their stockholders, partners or members for the
authorization, issuance, sale and delivery of the Units shall have been validly taken.
(v) Authorization of Underwriting Agreement. This Agreement has been duly authorized
and validly executed and delivered by each of the Suburban Parties.
(w) Enforceability of Organizational Agreements. Each of the Organizational Agreements
has been duly authorized and validly executed and delivered by the parties thereto and is a
valid and legally binding agreement of such party, enforceable against such party in
accordance with its terms; provided that the enforceability thereof may be limited by
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws
relating to or affecting creditors’ rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
11
equity or at law); and provided, further, that the indemnity, contribution and
exoneration provisions contained in any of such agreements may be limited by applicable laws
and public policy.
(x) No Conflicts. None of the offering, issuance and sale by the Partnership of the
Units, the execution, delivery and performance of this Agreement by the Suburban Parties or
the consummation of the transactions contemplated hereby (i) conflicts or will conflict with
or constitutes or will constitute a violation of the Organizational Documents, (ii)
conflicts or will conflict with or constitutes or will constitute a breach or violation of,
or a default (or an event which, with notice or lapse of time or both, would constitute such
a default) under any indenture, mortgage, deed of trust, loan agreement, lease or other
agreement or instrument to which any of the Partnership Entities is a party or by which any
of them or any of their respective properties may be bound, (iii) violates or will violate
any statute, law or regulation or any order, judgment, decree or injunction of any court or
governmental agency or body directed to any of the Partnership Entities or any of their
properties in a proceeding to which any of them or their property is a party or (iv) results
or will result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of any of the Partnership Entities, which conflicts, breaches,
violations, defaults or liens, in the case of clauses (ii), (iii) or (iv), would,
individually or in the aggregate, have a Material Adverse Effect or could materially impair
the ability of any of the Suburban Parties to perform their obligations under this
Agreement.
(y) No Consents. No permit, consent, approval, authorization, order, registration,
filing or qualification (“Consent”) of or with any court, governmental agency or
body having jurisdiction over any of the Partnership Entities or any of their respective
properties is required in connection with the offering, issuance and sale by the Partnership
of the Units, the execution, delivery and performance of this Agreement by the Suburban
Parties, or the consummation by the Suburban Parties of the transactions contemplated
hereby, except for such Consents as may be required under the 1933 Act, the 1933 Act Rules
and Regulations, the 1934 Act and the rules and regulations thereunder (the “1934 Act
Rules and Regulations”) and state securities or “Blue Sky” laws and applicable rules and
regulations under such laws.
(z) No Default. None of the Partnership Entities is (i) in violation of its
Organizational Documents, (ii) in violation of any law, statute, ordinance, administrative
or governmental rule or regulation applicable to it or of any order, judgment, decree or
injunction of any court or governmental agency or body having jurisdiction over it or (iii)
in breach, default (or an event which, with notice or lapse of time or both, would
constitute such a default) or violation in the performance of any obligation, agreement or
condition contained in any bond, debenture, note or any other evidence of indebtedness or in
any agreement, indenture, lease or other instrument to which it is a party or by which it or
any of its properties may be bound, which breach, default or violation in the case of
clauses (ii) or (iii) would, if continued, have a Material Adverse Effect or could
materially impair the ability of any of the Suburban Parties to perform their obligations
under this Agreement. To the knowledge of the Suburban Parties, no third party to any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
12
which any of the Partnership Entities is a party or by which any of them is bound or to
which any of their properties is subject, is in breach, default or violation of any such
agreement, which breach, default or violation would, if continued, have a Material Adverse
Effect or could materially impair the ability of any of the Suburban Parties to perform
their obligations under this Agreement.
(aa) Conformity of Securities to Descriptions in the Disclosure Package and the Final
Prospectus. The Units, when issued and delivered in accordance with the terms of the
Partnership Agreement against payment therefor as provided herein, will conform in all
material respects to the description thereof contained in the Disclosure Package and the
Final Prospectus.
(bb) Independent Registered Public Accounting Firm. The accountants,
PricewaterhouseCoopers LLP, who have certified the audited financial statements contained or
incorporated by reference in the Registration Statement and the most recent Preliminary
Prospectus (or any amendment or supplement thereto), are an independent registered public
accounting firm with respect to the Partnership and the General Partner as required by the
1933 Act, the 1933 Act Rules and Regulations and the rules and regulations of the Public
Company Accounting Oversight Board (the “PCAOB”).
(cc) Financial Statements. As of June 27, 2009, the Partnership would have had, on the
consolidated, as adjusted, basis indicated in the Disclosure Package and the Final
Prospectus, a capitalization as set forth therein. The historical financial statements
(including the related notes and supporting schedules) contained or incorporated by
reference in the Registration Statement, the Disclosure Package and the Final Prospectus,
together with the related notes (and any amendment or supplement thereto) comply as to form
in all material respects with the requirements of Regulation S-X under the 1933 Act and
present fairly in all material respects the financial position, results of operations and
cash flows of the entities purported to be shown thereby on the basis stated therein at the
respective dates or for the respective periods to which they apply and have been prepared in
accordance with generally accepted accounting principles in the United States
(“GAAP”) consistently applied throughout the periods involved, except to the extent
disclosed therein. The selected financial information set forth in the Registration
Statement, the Disclosure Package and the Final Prospectus (and any amendment or supplement
thereto) is accurately presented in all material respects and prepared on a basis consistent
with the audited and unaudited historical consolidated financial statements and pro forma
financial statements, as applicable, from which it has been derived. The other financial
information of the General Partner and the Partnership and its subsidiaries, including
non-GAAP financial measures, if any, contained in or incorporated by reference into the
Registration Statement, the Disclosure Package and the Final Prospectus has been derived
from the accounting records of the General Partner, the Partnership and its subsidiaries,
and fairly presents the information purported to be shown thereby. There are no financial
statements (historical or pro forma) that are required to be contained or incorporated by
reference in the Registration Statement, the Disclosure Package and the Final Prospectus
that are not contained or incorporated by reference as required.
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(dd) Title to Real Property. The Partnership Entities have good, valid and
indefeasible title to all real and personal property reflected in the Registration
Statement, the Disclosure Package and the Final Prospectus as assets owned by them, in each
case, free and clear of all (i) liens and security interests, or (ii) other claims and other
encumbrances (other than liens or security interests or Permitted Liens), except, in each
case, (1) as described, and subject to the limitations contained, in the Registration
Statement, the Disclosure Package and the Final Prospectus, (2) such as do not materially
interfere with the use of such properties taken as a whole as they have been used in the
past and are proposed to be used in the future as described or (3) for such liens, the
existence of which, would not, individually or in the aggregate, result in a Material
Adverse Effect or materially impair the ability of the Suburban Parties to perform their
obligations under this Agreement, and subject to limitations contained, in the Registration
Statement, the Disclosure Package and the Final Prospectus; provided that, with respect to
any real property and buildings held under lease by any Partnership Entity, such real
property and buildings are held under valid and subsisting and enforceable leases with such
exceptions as do not materially interfere with the use of the properties of the Partnership
Entities taken as a whole as they have been used in the past as described, and subject to
the limitations contained, in the Registration Statement, the Disclosure Package and the
Final Prospectus and are proposed to be used in the future as described, and subject to the
limitations contained, in the Registration Statement, the Disclosure Package and the Final
Prospectus.
(ee) No Material Adverse Change. None of the Partnership Entities has sustained, since
the date of the latest audited financial statements contained or incorporated by reference
in the Registration Statement, the Disclosure Package and the Final Prospectus, any material
loss or interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or governmental
action, investigation, order or decree, otherwise than as set forth or contemplated in the
Registration Statement, the Disclosure Package and the Final Prospectus (or any amendment or
supplement thereto). Except as disclosed in the Registration Statement, the Disclosure
Package or the Final Prospectus, subsequent to the respective dates as of which such
information is given in the Registration Statement, the Disclosure Package and the Final
Prospectus (or any amendment or supplement thereto), (i) none of the Partnership Entities
has incurred any liability or obligation, indirect, direct or contingent, or entered into
any transactions, not in the ordinary course of business, that, individually or in the
aggregate, is material to the Partnership Entities taken as a whole, (ii) there has not been
any material change in the capitalization, or material increase in the short-term debt or
long-term debt, of any Partnership Entity and (iii) there has not been any material adverse
change, or any development involving or which could reasonably be expected to result in,
individually or in the aggregate, a material adverse change in or affecting the general
affairs, business, prospects, properties, management, condition (financial or other),
partners’ equity, stockholders’ equity, members’ equity, net worth or results of operations
of the Partnership Entities taken as a whole.
(ff) Legal Proceedings or Contracts to be Described or Filed. There are no legal or
governmental proceedings pending or, to the knowledge of the Suburban Parties, threatened
against any of the Partnership Entities, or to which any of the Partnership
14
Entities is a party, or to which any of their respective properties is subject, that
are required to be described in the Registration Statement, the Disclosure Package and the
Final Prospectus (or any amendment or supplement thereto) but that are not described as
required, and there are no agreements, contracts, indentures, leases or other instruments
that are required to be described in the Registration Statement, the Disclosure Package and
the Final Prospectus (or any amendment or supplement thereto) or to be filed as exhibits to
the Registration Statement that are not described or filed as required by the 1933 Act or
the 1933 Act Rules and Regulations.
(gg) Certain Relationships and Related Transactions. No relationship, direct or
indirect, exists between or among any Partnership Entity on the one hand, and the members of
the Board of Supervisors of the Partnership (“Supervisors”), directors, managers,
officers, members, partners, stockholders, customers or suppliers of any Partnership Entity
on the other hand, that is required to be described in the Registration Statement, the
Disclosure Package and Final Prospectus and is not so described. There are no outstanding
loans, advances (except normal advances for business expenses in the ordinary course of
business) or guarantees of indebtedness by any Partnership Entity to or for the benefit of
any of the officers, Supervisors, directors or managers of any Partnership Entity or their
respective family members, except as disclosed in the Registration Statement, the Disclosure
Package and the Final Prospectus (or any amendment or supplement thereto). No Partnership
Entity has, in violation of the Xxxxxxxx-Xxxxx Act of 2002, directly or indirectly, extended
or maintained credit, arranged for the extension of credit or renewed an extension of credit
in the form of a personal loan to or for any Supervisor, director, manager or executive
officer of any Partnership Entity.
(hh) Permits. Each of the Partnership Entities has such permits, consents, licenses,
franchises, certificates and authorizations of governmental or regulatory authorities
(“permits”) as are necessary to own its properties and to conduct its business in
the manner described in the Disclosure Package and the Final Prospectus, subject to such
qualifications as may be set forth in the Disclosure Package and the Final Prospectus and
except for such permits that, if not obtained, would not, individually or in the aggregate,
have a Material Adverse Effect; except as set forth in the Registration Statement, the
Disclosure Package and the Final Prospectus (or any amendment or supplement thereto), each
of the Partnership Entities has fulfilled and performed all its material obligations with
respect to such permits that are due to have been, or will be, fulfilled and performed by
such date, and no event has occurred that would prevent the permits from being renewed or
reissued or that allows, or after notice or lapse of time would allow, revocation or
termination thereof or results in any impairment of the rights of the holder of any such
permit, except for such non-renewals, non-issuances, revocations, terminations and
impairments that would not, individually or in the aggregate, have a Material Adverse
Effect.
(ii) Books and Records. Each Partnership Entity (i) makes and keeps books, records and
accounts that, in reasonable detail, accurately and fairly reflect in all material respects
the transactions and dispositions of its assets and (ii) maintains systems of internal
accounting controls sufficient to provide reasonable assurances that
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(A) transactions are executed in accordance with management’s general or specific
authorization; (B) transactions are recorded as necessary to permit preparation of its
financial statements in conformity with generally accepted accounting principles and to
maintain accountability for its assets; (C) access to its assets is permitted only in
accordance with management’s general or specific authorization and (D) the recorded
accountability for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. Except as disclosed in the
Disclosure Package or the Final Prospectus, there are no material weaknesses or significant
deficiencies in the Partnership’s internal controls.
(jj) Disclosure Controls. The Partnership has established and maintains disclosure
controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the 1934 Act),
which are designed to provide reasonable assurance that the information required to be
disclosed by the Partnership in reports that it files under the 1934 Act is accumulated and
communicated to the Partnership’s management, including its principal executive officer and
principal financial officer, as appropriate, to allow timely decisions regarding required
disclosure; such disclosure controls and procedures are effective in all material respects
to perform the functions for which they were established.
(kk) No Recent Changes to Internal Control Over Financial Reporting. Since the date of
the most recent evaluation of such disclosure controls and procedures, there have been no
significant changes in internal controls or in other factors that materially affected the
Partnership’s internal control over financial reporting.
(ll) Sarbanes Oxley Act of 2002. There is and has been no failure on the part of the
Partnership and, to the Partnership’s knowledge, any of the Supervisors or any 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.
(mm) Tax Returns. Each of the Partnership Entities has filed (or has obtained
extensions with respect to) all material federal, state, local and foreign income and
franchise tax returns required to be filed through the date hereof, which returns are
complete and correct in all material respects, and has timely paid all taxes due thereon,
other than those (i) that are being contested in good faith and for which adequate reserves
have been established in accordance with generally accepted accounting principles or (ii)
that, if not paid, would not have a Material Adverse Effect.
(nn) Investment Company. None of the Partnership Entities is now, or after sale of the
Units to be sold by the Partnership hereunder and application of the net proceeds from such
sale as described in the Disclosure Package and the Final Prospectus under the caption “Use
of Proceeds” will be, an “investment company” or a company “controlled by” an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.
(oo) Environmental Compliance. The Partnership Entities (i) are in compliance with any
and all applicable federal, state and local laws and regulations relating to the protection
of human health and safety and the environment or imposing liability or
16
standards of conduct concerning any Hazardous Material (as hereinafter defined)
(“Environmental Laws”), (ii) have received all permits required of them under
applicable Environmental Laws to conduct their respective businesses, (iii) are in
compliance with all terms and conditions of any such permit and (iv) do not have any
liability in connection with the release into the environment of any Hazardous Material,
except, in each case, where such noncompliance with Environmental Laws, failure to receive
required permits, failure to comply with the terms and conditions of such permits, or
liability in connection with a release would not, individually or in the aggregate, have a
Material Adverse Effect. The term “Hazardous Material” means (A) any “hazardous
substance” as defined in the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, (B) any “hazardous waste” as defined in the Resource
Conservation and Recovery Act, as amended, (C) any petroleum or petroleum product, (D) any
polychlorinated biphenyl and (E) any pollutant or contaminant or hazardous, dangerous or
toxic chemical, material, waste or substance defined in or regulated under any other
Environmental Law.
(pp) No Labor Dispute. No labor dispute with the employees of the Partnership Entities
exists or, to the knowledge of any of the Suburban Parties, is imminent or threatened that
is reasonably likely to result in a Material Adverse Effect.
(qq) Insurance. The Partnership Entities maintain insurance covering the properties,
operations, personnel and businesses of the Partnership Entities against such losses and
risks and in such amounts as are reasonably adequate for the conduct of their respective
businesses and the value of their respective properties and as are customary for companies
engaged in similar businesses in similar industries. None of the Partnership Entities has
received notice from any insurer or agent of such insurer that substantial capital
improvements or other expenditures will have to be made in order to continue such insurance
(including after giving effect to the transactions contemplated hereby), and all such
insurance is outstanding and duly in force on the date hereof and will be outstanding and
duly in force on each Delivery Date.
(rr) Litigation. Except as described in the Disclosure Package and the Final
Prospectus, there is (i) no action, suit or proceeding before or by any court, arbitrator or
governmental agency, body or official, domestic or foreign, now pending or, to the knowledge
of the Suburban Parties, threatened, to which any of the Partnership Entities is or may be a
party or to which the business or property of any of the Partnership Entities is or may be
subject and (ii) no injunction, restraining order or order of any nature issued by a federal
or state court or foreign court of competent jurisdiction to which any of the Partnership
Entities is or may be subject, that, in the case of clauses (i) and (ii) above, could
individually or in the aggregate have a Material Adverse Effect or could materially impair
the ability of the Suburban Parties to perform their obligations under this Agreement.
(ss) No Distribution of Other Offering Materials. None of the Partnership Entities have
distributed and, prior to the later to occur of (i) any Delivery Date and (ii) completion of
the distribution of the Units, will not distribute, any prospectus (as
17
defined under the 0000 Xxx) in connection with the offering and sale of the Units other than
the Preliminary Prospectus, the Disclosure Package or the Final Prospectus.
(tt) Listing. The Partnership is in compliance with the rules of the NYSE, including,
without limitation, the requirements for initial and continued listing of the Units on the
NYSE.
(uu) Brokers. Except as described in the Disclosure Package and the Final Prospectus,
there are no contracts, agreements or understandings between any Partnership Entity and any
person that would give rise to a valid claim against any Partnership Entity or any
Underwriter for a brokerage commission, finder’s fee or other like payment in connection
with this offering of the Units.
(vv) Market Stabilization. None of the Partnership Entities (i) has taken, and none of
the Partnership Entities shall take, directly or indirectly, any action designed to cause or
result in, or which has constituted or which might reasonably be expected to constitute, the
stabilization or manipulation of the price of the Units to facilitate the sale or resale of
the Units in violation of any law, rule or regulation or (ii) since the initial filing of
the Registration Statement, except as contemplated by this Agreement, (A) has sold, bid for,
purchased or paid anyone any compensation for soliciting purchases of the Units or (B) has
paid or agreed to pay to any person any compensation for soliciting another to purchase any
other securities of the Partnership.
(ww) Statistical and Market-Related Data. All statistical or market-related data
included in the Registration Statement, the Disclosure Package and the Final Prospectus (or
any amendment or supplement thereto), if any, are based on or derived from sources that the
Partnership reasonably believes to be reliable and accurate, and the Partnership has
obtained the written consent to the use of such data from such sources to the extent
required.
(xx) FINRA Affiliations. To the Partnership’s knowledge, there are no affiliations or
associations between any member of the Financial Industry Regulatory Authority
(“FINRA”) and any of the Partnership’s officers or Supervisors or the Partnership’s
5% or greater securityholders, except as set forth in the Registration Statement, the
Disclosure Package and the Final Prospectus (or any amendment or supplement thereto).
(yy) No Conflict with OFAC Laws. None of the Partnership Entities, nor, to the
knowledge of the Partnership, the General Partner, any Supervisor, officer, agent or
employee of any of the Partnership Entities 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 Partnership will not knowingly, 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.
18
(zz) No Conflict with Money Laundering Laws. The operations of each of the Partnership
Entities are and have been conducted at all times in material 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 applicable
jurisdictions, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines issued, administered or enforced by any govern-mental 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 any
of the Partnership Entities with respect to the Money Laundering Laws is pending or, to the
knowledge of the Partnership, the General Partner, the Supervisors and officers, threatened
the adverse determination of which would have a Material Adverse Effect.
(aaa) No Conflict with FCPA. Neither the Partnership nor any of its subsidiaries nor,
to the knowledge of the Partnership, any director, officer, agent, employee or affiliate of
the Partnership or any of its subsidiaries is aware of or has taken any action, directly or
indirectly, that would result in a violation by such persons of the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder (the
“FCPA”), including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA; and the
Partnership, its subsidiaries and, to the knowledge of the Partnership, its affiliates have
conducted their businesses in compliance with the FCPA and have instituted and maintain
policies and procedures designed to ensure, and which are reasonably expected to continue to
ensure, continued compliance therewith.
Any certificate signed by any officer of any Partnership Entity and delivered to the
Underwriters or to counsel for the Underwriters pursuant to this Agreement shall be deemed a
representation and warranty by such Partnership Entity to each Underwriter as to the matters
covered thereby.
5. Additional Covenants.
(a) The Suburban Parties jointly and severally covenant and agree with the several
Underwriters that:
(i) The Partnership will timely transmit copies of the Preliminary Prospectus
and the Final Prospectus in a form approved by the Underwriters, and any amendments
or supplements thereto (subject to the provisions of this Section 5), to the
Commission for filing pursuant to Rule 424(b) of the 1933 Act Rules and Regulations.
(ii) The Partnership will deliver or make available to each of the Underwriters
and to counsel for the Underwriters (i) a signed copy of the
19
Registration Statement as originally filed, including copies of exhibits
thereto, and of any amendments and supplements to the Registration Statement and
(ii) a signed copy of each consent and certificate included in, or filed as an
exhibit to, the Registration Statement as so amended or supplemented; the
Partnership will deliver to the Underwriters as soon as practicable after the date
of this Agreement as many copies of the Preliminary Prospectus, the Final Prospectus
and any amendment or supplement thereto as the Underwriters may reasonably request
for the purposes contemplated by the 1933 Act; if there is a post-effective
amendment to the Registration Statement that is not effective under the 1933 Act,
the Partnership will use its reasonable best efforts to cause the post-effective
amendment to the Registration Statement to become effective as promptly as possible,
and it will notify the Underwriters, promptly after it shall receive notice thereof,
of the time when the post-effective amendment to the Registration Statement has
become effective; the Partnership will promptly advise the Underwriters of any
request of the Commission for amendment of the Registration Statement or for
supplement to the Preliminary Prospectus or the Final Prospectus or for any
additional information, and of the issuance by the Commission or any state or other
jurisdiction or other regulatory body of any stop order under the 1933 Act or other
order suspending the effectiveness of the Registration Statement (as amended or
supplemented) or preventing or suspending the use of the Preliminary Prospectus, any
Issuer Free Writing Prospectus or the Final Prospectus or suspending the
qualification or registration of the Units for offering or sale in any jurisdiction,
and of the institution or threat of any proceedings therefor, of which the
Partnership shall have received notice or otherwise have knowledge prior to the
completion of the distribution of the Units; and the Partnership will use its
reasonable best efforts to prevent the issuance of any such stop order or other
order and, if issued, to secure the prompt removal thereof.
(iii) The Partnership will not file any amendment or supplement to the
Registration Statement, the Final Prospectus, the Basic Prospectus or Issuer Free
Writing Prospectus or any other free writing prospectus (or any other prospectus
relating to the Units filed pursuant to Rule 424(b) of the 1933 Act Rules and
Regulations) that differs from the Final Prospectus as filed pursuant to Rule
424(b), of which the Underwriters shall not previously have been advised or to which
the Underwriters shall have reasonably objected in writing after being so advised
unless the Partnership shall have determined based upon the advice of counsel that
such amendment or supplement is required by law; and the Partnership will promptly
notify the Underwriters after it shall have received notice thereof of the time when
any amendment to the Registration Statement, the Final Prospectus, the Basic
Prospectus or Issuer Free Writing Prospectus becomes effective or when any
supplement to the Basic Prospectus has been filed.
(iv) During the period when a prospectus relating to any of the Units is
required to be delivered under the 1933 Act by any Underwriter or dealer, the
Partnership will comply, at its own expense, with all requirements imposed by the
1933 Act and the 1933 Act Rules and Regulations, so far as necessary to permit
20
the continuance of sales of or dealing in the Units during such period in
accordance with the provisions hereof and as contemplated by the Final Prospectus.
(v) If, during the period when a prospectus relating to any of the Units is
required to be delivered under the 1933 Act by any Underwriter or dealer, (i) any
event relating to or affecting the Partnership Entities or of which the Partnership
shall be advised in writing by the Representatives shall occur as a result of which,
in the opinion of the Partnership or the counsel for the Underwriters, the Final
Prospectus or any Issuer Free Writing Prospectus, as then amended or supplemented
would include any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading or (ii) it shall be
necessary to amend or supplement the Registration Statement, the Final Prospectus or
any Issuer Free Writing Prospectus to comply with the 1933 Act, the 1933 Act Rules
and Regulations, the 1934 Act or the 1934 Act Rules and Regulations, the Partnership
will forthwith at its expense prepare and file with the Commission, and furnish to
the Underwriters a reasonable number of copies of, such amendment or supplement or
other filing that will correct such statement or omission or effect such compliance.
(vi) During the period when a prospectus relating to any of the Units is
required to be delivered under the 1933 Act by any Underwriter or dealer, the
Partnership will furnish such proper information as may be lawfully required and
otherwise cooperate with the Underwriters in qualifying the Units for offer and sale
under the securities or Blue Sky laws of such jurisdictions as the Representatives
may reasonably designate and will file and make such statements or reports as are or
may be reasonably necessary; provided, however, that the Partnership shall not be
required to qualify as a foreign partnership or to qualify as a dealer in securities
or to file a general consent to service of process under the laws of any
jurisdiction.
(vii) In accordance with Section 11(a) of the 1933 Act and Rule 158 of the 1933
Act Rules and Regulations, the Partnership will make generally available to its
security holders an earning statement (which need not be audited) in reasonable
detail covering the 12-month period beginning not later than the first day of the
month next succeeding the month in which occurred the effective date (within the
meaning of Rule 158) of the Registration Statement as soon as practicable after the
end of such period.
(viii) The Partnership will furnish or make available to its security holders
annual reports containing financial statements audited by an independent registered
public accounting firm and furnish or make available quarterly reports containing
financial statements and financial information that may be unaudited. The
Partnership will, for a period of two years from the Delivery Date, furnish or make
available to the Underwriters via the Commission’s Interactive Data Electronic
Applications (IDEA) system or the Partnership’s website a copy of
21
each annual report, quarterly report, current report and all other documents,
reports and information furnished by the Partnership to holders of Units (excluding
any periodic income tax reporting) or filed with any securities exchange or market
pursuant to the requirements of such exchange or market or with the Commission
pursuant to the 1933 Act or the 1934 Act. The Partnership will deliver or make
available to the Representatives similar reports with respect to any significant
subsidiaries, as that term is defined in the 1933 Act Rules and Regulations, which
are not consolidated in the Partnership’s financial statements. The Representatives
will be directed to access the IDEA system for purposes of retrieving the reports so
filed. Compliance with the foregoing shall constitute delivery by the Partnership
of such reports to the Representatives in compliance with the provisions of this
Section 5(a)(viii). The Representatives shall have no duty to search for or
obtain any electronic or other filings that the Partnership makes with the
Commission, regardless of whether such filings are periodic, supplemental or
otherwise.
(ix) The Suburban Parties will not, for a period of 60 days from the date of
the Final Prospectus, directly or indirectly, (i) offer for sale, sell, pledge,
announce the intention to sell or otherwise dispose of (or enter into any
transaction or device that is designed to, or could be expected to, result in the
disposition by any person at any time in the future of) any Common Units held by
them or securities convertible into, or exchangeable for Common Units held by them,
or sell or grant options, rights or warrants with respect to any Common Units held
by them or securities convertible into or exchangeable for Common Units held by
them, or (ii) enter into any swap or other derivatives transaction that transfers to
another, in whole or in part, any of the economic benefits or risks of ownership of
such Common Units, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of Common Units held by them or other securities,
in cash or otherwise, (iii) file or cause to be filed a registration statement,
including any amendments, with respect to the registration of any Common Units or
securities convertible, exercisable or exchangeable into Common Units (other than
(1) any registration statement on Form S-8 or (2) as otherwise excepted from this
lock-up provision) or (iv) publicly disclose the intention to do any of the
foregoing, in each case without the prior written consent of the Representatives;
provided, however, that the foregoing restrictions do not apply to (1) issuances of
Common Units pursuant to any existing employee benefit plans, or (2) pursuant to the
Underwriters’ option to purchase the Option Units; and the executive officers and
Supervisors of the Partnership shall furnish to the Underwriters, at or prior to the
execution of this Agreement, a letter or letters, substantially in the form of
Exhibit A hereto, pursuant to which each such person shall agree not to,
directly or indirectly, (1) offer for sale, sell, pledge or otherwise dispose of (or
enter into any transaction or device that is designed to, or could be expected to,
result in the disposition by any person at any time in the future of) any Common
Units or securities convertible into or exchangeable for Common Units or (2) enter
into any swap or other derivatives transaction that transfers to another, in whole
or in part, any of the economic benefits or risks of ownership of such Common Units,
whether any such transaction described in
22
clause (1) or (2) above is to be settled by delivery of Common Units or other
securities, in cash or otherwise, in each case for a period of 60 days from the date
of the Final Prospectus, without the prior written consent of the Representatives.
(x) The Partnership will apply the proceeds from the sale of the Units as set
forth in the description under “Use of Proceeds” in the Final Prospectus.
(xi) The Partnership will promptly provide the Underwriters with copies of all
correspondence to and from, and all documents issued to and by, the Commission in
connection with the registration of the Units under the 1933 Act.
(xii) The Partnership will use reasonable best efforts to obtain approval for,
and maintain the listing of the Units on, the NYSE.
(xiii) The Partnership agrees that, unless it has obtained or will obtain the
prior written consent of the Representatives, it has not made and will not make any
offer relating to the Units that would constitute an Issuer Free Writing Prospectus
or that would otherwise constitute a “free writing prospectus” (as defined in Rule
405) required to be filed by the Partnership with the Commission or retained by the
Partnership under Rule 433; provided that the prior written consent of the parties
hereto shall be deemed to have been given in respect of the free writing
prospectuses included in Schedule II hereto and any electronic road show. The
Partnership agrees that (x) it has treated and will treat, as the case may be, each
Issuer Free Writing Prospectus as an Issuer Free Writing Prospectus and (y) it has
complied and will comply, as the case may be, with the requirements of Rules 164 and
433 applicable to any Issuer Free Writing Prospectus, including in respect of timely
filing with the Commission, legending and record keeping.
(xiv) If, at any time prior to the filing of the Final Prospectus pursuant to
Rule 424(b), any event occurs as a result of which the Disclosure Package would
include any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein in light of the circumstances under which
they were made at such time not misleading, the Partnership will (i) notify the
Representatives promptly so that any use of the Disclosure Package may cease until
it is amended or supplemented; (ii) amend or supplement the Disclosure Package to
correct such statement or omission and (iii) supply any amendment or supplement to
the Representatives in such quantities as the Representatives may reasonably
request.
(xv) If the Partnership elects to rely on Rule 462(b) of the 1933 Act Rules and
Regulations, the Partnership shall both file an Abbreviated Registration Statement
with the Commission in compliance with Rule 462(b) and pay the applicable fees in
accordance with Rule 111 of the 1933 Act Rules and Regulations by the earlier of (i)
10:00 p.m., New York time, on the date of this Agreement and (ii) the time that
confirmations are given or sent, as specified by Rule 462(b)(2).
23
(b) Each of the Underwriters, severally but not jointly, covenant and agree with the
Partnership that, unless it has obtained or will obtain, as the case may be, the prior written
consent of the Partnership, it has not made and will not make any offer relating to the Units
that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a
“free writing prospectus” (as defined in Rule 405) required to be filed by the Partnership with
the Commission or retained by the Partnership under Rule 433; provided that the prior written
consent of the parties hereto shall be deemed to have been given in respect of the free writing
prospectuses included in Schedule II hereto and any electronic road show.
6. Conditions to the Underwriters’ Obligations. The several obligations of the Underwriters to
purchase and pay for the Units, as provided herein, shall be subject to the accuracy, as of the
date hereof and as of each Delivery Date, of the representations and warranties of the Suburban
Parties contained herein, to the performance by the Suburban Parties of their covenants and
obligations hereunder, and to the following additional conditions:
(a) All filings required by Rule 424 and Rule 430B of the 1933 Act Rules and
Regulations shall have been timely made. No stop order suspending the effectiveness of the
Registration Statement or preventing or suspending the use of the Final Prospectus or any
Issuer Free Writing Prospectus shall have been issued and no proceeding for that purpose
shall have been initiated or, to the knowledge of the Partnership or the Underwriters,
threatened or contemplated by the Commission, and any request of the Commission for
additional information (to be included in the Registration Statement or the Final Prospectus
or otherwise) shall have been complied with to the reasonable satisfaction of the
Underwriters.
(b) No Underwriter shall have advised the Partnership on or prior to the applicable
Delivery Date that the Registration Statement, the Disclosure Package or the Final
Prospectus or any amendment or supplement thereto contains an untrue statement of fact that,
in the opinion of the Underwriters (upon the advice of counsel) is material, or omits to
state a fact that, in the opinion of the Underwriters (upon the advice of counsel) is
material and is required to be stated therein or is necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.
(c) On each Delivery Date, the Underwriters shall have received the opinion of
Proskauer Rose LLP, counsel for the Partnership, addressed to the Underwriters and dated the
applicable Delivery Date, in form and substance reasonably satisfactory to the Underwriters,
to the effect set forth on Exhibit B hereto.
(d) On each Delivery Date, the Underwriters shall have received the opinion of Xxxx
Xxxx, Vice President, General Counsel and Secretary of the Partnership, addressed to the
Underwriters and dated the applicable Delivery Date, in form and substance reasonably
satisfactory to the Underwriters, to the effect set forth on Exhibit C hereto.
(e) The Underwriters shall have received on each Delivery Date, from Xxxxxx & Xxxxxx
L.L.P., counsel to the Underwriters, such opinion or opinions, dated the
24
applicable Delivery Date, with respect to such matters as the Underwriters may
reasonably require; and the Suburban Parties shall have furnished to such counsel such
documents as they reasonably request for the purposes of enabling them to review or pass on
the matters referred to in this Section 6(e) and in order to evidence the accuracy,
completeness and satisfaction of the representations, warranties and conditions herein
contained.
(f) At the time of execution of this Agreement and on each Delivery Date, the
Underwriters shall have received from PricewaterhouseCoopers LLP a letter or letters, in
form and substance reasonably satisfactory to the Underwriters and PricewaterhouseCoopers
LLP, addressed to the Underwriters and dated the date hereof (i) confirming that such firm
is an independent registered public accounting firm within the meaning of the 1933 Act and
the rules of the PCAOB and is 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 and the Final Prospectus, as of a date not more
than five days prior to the date hereof), the conclusions and findings of such firm with
respect to the various financial information in the Registration Statement, the Final
Prospectus, any Preliminary Prospectus and any Issuer Free Writing Prospectus and other
matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection
with registered public offerings.
(g) With respect to the letter or letters of PricewaterhouseCoopers LLP referred to in
the preceding paragraph and delivered to the Underwriters concurrently with the execution of
this Agreement (the “initial letters”), the Partnership shall have furnished to the
Underwriters a letter (the “bring-down letter”) of such firm, in form and substance
reasonably satisfactory to the Underwriters, addressed to the Underwriters and dated on each
Delivery Date (i) confirming that such firm is an independent registered public accounting
firm within the meaning of the 1933 Act and the rules of the PCAOB and is 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 Delivery Date (or, with
respect to matters involving changes or developments since the respective dates as of which
specified financial information is given in the Disclosure Package and the Final Prospectus,
as of a date not more than five 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 letters and (iii) confirming in all material respects the
conclusions and findings set forth in the initial letters.
(h) Except as set forth in the Disclosure Package and the Final Prospectus, (i) none of
the Partnership Entities shall have sustained since the date of the latest audited financial
statements contained or incorporated by reference in the Registration Statement, the
Disclosure Package and the Final Prospectus any loss or interference with its 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, investigation or decree and (ii)
subsequent to the respective dates as of which such information is given in the Registration
Statement, the Disclosure Package and the Final Prospectus (or any
25
amendment or supplement thereto), none of the Partnership Entities shall have incurred
any liability or obligation, direct or contingent, or entered into any transactions, and
there shall not have been any change in the capitalization or short-term or long-term debt
of the Partnership Entities or any change, or any development involving or that which could
reasonably be expected to result in, individually or in the aggregate, a material adverse
change in or affecting the general affairs, business, prospects, properties, management,
condition (financial or other), partners’ equity, stockholders’ equity, members’ equity, net
worth or results of operations of the Partnership Entities taken as a whole, the effect of
which, in any such case described in clause (i) or (ii), is in the judgment of the
Underwriters so material or adverse as to make it impracticable or inadvisable to proceed
with the public offering or the delivery of the Units being delivered on such Delivery Date
on the terms and in the manner contemplated in the Final Prospectus.
(i) Subsequent to the execution and delivery of this Agreement (i) no downgrading shall
have occurred in the rating accorded the Partnership’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 1933 Act 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 Partnership’s debt securities or
preferred securities.
(j) Subsequent to the execution and delivery to this Agreement there shall not have
occurred any of the following: (i) trading in securities generally on the NYSE shall have
been suspended, 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) trading in any securities of the Partnership on any
exchange or in the over-the-counter market shall have been suspended, (iii) a banking
moratorium shall have been declared by federal or state authorities, (iv) 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 (v) there shall have occurred such a material adverse change
in general economic, political or financial conditions or any other calamity or crisis,
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, so material and adverse as
to make it impracticable or inadvisable to proceed with the public offering, issuance or
sale of the Units being delivered on such Delivery Date on the terms and in the manner
contemplated in the Final Prospectus.
(k) The Underwriters shall have received certificates, dated each Delivery Date and
signed by a president and the chief financial officer (or persons holding similar positions,
as applicable), in their capacities as such, of each of the Suburban Parties, stating that:
(i) the conditions set forth in Section 6(a) have been fully satisfied;
26
(ii) such officer has examined the Registration Statement, the Disclosure
Package and the Final Prospectus and any amendment or supplement thereto, as well as
each electronic road show used in connection with the offering, and nothing has come
to such officer’s attention that would lead such officer to believe that: (A)(1) the
Registration Statement, including the documents incorporated therein by reference,
as of the most recent Effective Date, (2) the Final Prospectus, including any
documents incorporated by reference therein, as of the date of the Final Prospectus
and as of such Delivery Date and (3) the Disclosure Package, as of the Execution
Time, contained and contains any untrue statement of a material fact or omitted and
omits to state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading; and (B) since
the Effective Date, there has occurred any event required to be set forth in an
amendment or supplement to the Registration Statement, the Final Prospectus or the
Disclosure Package that has not been so set forth;
(iii) all representations and warranties made herein by such Suburban Party are
true and correct as of such Delivery Date, with the same effect as if made on and as
of such Delivery Date; and all agreements herein to be performed or complied with by
such Suburban Party on or prior to such Delivery Date have been duly performed and
complied with by such Suburban Party;
(iv) such Suburban Party has performed all obligations required to be performed
by it pursuant to this Agreement;
(v) no stop order suspending the effectiveness of the Registration Statement
has been issued and no proceedings for that purpose have been instituted or, to such
officer’s knowledge, are threatened; and
(vi) covering such other matters as the Underwriters may reasonably request.
(l) The Suburban Parties shall not have failed, refused or been unable, at or prior to
each Delivery Date, to have performed any agreement on their part to be performed or any of
the conditions herein contained and required to be performed or satisfied by them at or
prior to such Delivery Date.
(m) The Partnership shall have furnished to the Underwriters at each Delivery Date such
further information, opinions, certificates, letters and documents as the Underwriters may
have reasonably requested.
(n) The Units are listed on the NYSE.
(o) The Underwriters shall have received duly and validly executed letter agreements
referred to in Section 5(a)(ix) hereof.
All such opinions, certificates, letters and documents will be in compliance with the
provisions hereof only if they are reasonably satisfactory in form and substance to the
27
Underwriters and to Xxxxxx & Xxxxxx L.L.P., counsel for the several Underwriters. The
Partnership will furnish the Underwriters with such signed and conformed copies of such opinions,
certificates, letters and documents as they may request.
In accordance with the provisions of Section 10 hereof, this Agreement may be terminated by
the Underwriters at any time at or prior to each Delivery Date by notice to the Partnership if any
condition specified in Section 6 shall not have been satisfied on or prior to such Delivery Date.
7. Indemnification and Contribution.
(a) The Suburban Parties, jointly and severally, will indemnify and hold harmless each
of the Underwriters and their respective directors, officers, employees and agents, each
person, if any, who controls such Underwriter within the meaning of the 1933 Act or the 1934
Act and each affiliate of any Underwriter within the meaning of Rule 405 under the 1933 Act
from and against any losses, damages or liabilities, joint or several, to which that
Underwriter, director, officer, employee, agent, controlling person or affiliate may become
subject under the 1933 Act or otherwise, insofar as such losses, damages or liabilities (or
actions or claims in respect thereof) arise out of or are based upon (i) an untrue statement
or alleged untrue statement of a material fact contained in (A) the Registration Statement,
any Preliminary Prospectus, the Final Prospectus, the Disclosure Package, any Issuer Free
Writing Prospectus or any amendment or supplement thereto, any “road show” (as defined in
Rule 433) not constituting an Issuer Free Writing Prospectus (a “Non-Prospectus Road
Show”) or (B) any Blue Sky application or other document prepared or executed by any of
the Partnership Entities (or based upon any written information furnished by any of the
Partnership Entities) or (ii) the omission or alleged omission to state in the Registration
Statement, any Preliminary Prospectus, the Final Prospectus, the Disclosure Package, any
Issuer Free Writing Prospectus or any amendment or supplement thereto or in any
Non-Prospectus Road Show a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances in which they were made, not
misleading, and will reimburse each of the Underwriters for any reasonable legal or other
expenses incurred by such Underwriter in connection with investigating, preparing, pursuing
or defending against or appearing as a third party witness in connection with any such loss,
damage, liability, action or claim, including, without limitation, any investigation or
proceeding by any governmental agency or body, commenced or threatened, including the
reasonable fees and expenses of counsel to the indemnified party, as such expenses are
incurred (including such losses, damages, liabilities or expenses to the extent of the
aggregate amount paid in settlement of any such action or claim, provided that (subject to
Section 7(c) hereof) any such settlement is effected with the written consent of the
Partnership); provided, however, that the Suburban Parties shall not be liable in any such
case to the extent, but only to the extent, that any such loss, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in the Registration Statement, any Preliminary Prospectus, the Final
Prospectus, the Disclosure Package, any Issuer Free Writing Prospectus or any amendment or
supplement thereto or any Blue Sky application, in reliance upon and in conformity with
written information relating to the Underwriters furnished to the
28
Partnership by the Representatives, expressly for use in the preparation thereof (as
provided in Section 13 hereof).
(b) Each of the Underwriters, severally and not jointly, will indemnify and hold
harmless the Suburban Parties and their respective officers, Supervisors, employees and
agent, each person, if any, who controls such Suburban Parties within the meaning of the
1933 Act or the 1934 Act from and against any losses, damages or liabilities to which the
Suburban Parties may become subject under the 1933 Act or otherwise, insofar as such losses,
damages or liabilities (or actions or claims in respect thereof) arise out of or are based
upon (i) an untrue statement or alleged untrue statement of a material fact contained in (A)
the Registration Statement, any Preliminary Prospectus, the Final Prospectus, the Disclosure
Package, any Issuer Free Writing Prospectus or any amendment or supplement thereto or in any
Non-Prospectus Road Show or (B) any Blue Sky application or (ii) the omission or alleged
omission to state in the Registration Statement, any Preliminary Prospectus, the Final
Prospectus, the Disclosure Package, any Issuer Free Writing Prospectus or any amendment or
supplement thereto a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading,
in each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in the Registration Statement, any
Preliminary Prospectus, the Final Prospectus, the Disclosure Package, any Issuer Free
Writing Prospectus or any amendment or supplement thereto, in reliance upon and in
conformity with written information relating to the Underwriters furnished to the
Partnership by the Underwriters, expressly for use in the preparation thereof (as provided
in Section 13 hereof), and will reimburse the Suburban Parties for any reasonable legal or
other expenses incurred by the Suburban Parties in connection with investigating or
defending any such action or claim as such expenses are incurred (including such losses,
damages, liabilities or expenses to the extent of the aggregate amount paid in settlement of
any such action or claim, provided that (subject to Section 7(c) hereof) any such settlement
is effected with the written consent of the Underwriters).
(c) Promptly after receipt by an indemnified party under Section 7(a) or 7(b) hereof of
notice of the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against an indemnifying party under Section 7(a) or 7(b)
hereof, notify each such indemnifying party in writing of the commencement thereof, but the
failure so to notify such indemnifying party shall not relieve such indemnifying party from
any liability except to the extent that it has been prejudiced in any material respect by
such failure or from any liability that it may have to any such indemnified party otherwise
than under Section 7(a) or 7(b) hereof. In case any such action shall be brought against
any such indemnified party and it shall notify each indemnifying party of the commencement
thereof, each such indemnifying party shall be entitled to participate therein and, to the
extent that it shall wish, jointly with any other indemnifying party under Section 7(a) or
7(b) hereof similarly notified, to assume the defense thereof, with counsel satisfactory to
such indemnified party (who shall not, except with the consent of such indemnified party, be
counsel to such indemnifying party), and, after notice from such indemnifying party to such
indemnified party of its election so to assume the defense thereof, such indemnifying party
shall not be liable to
29
such indemnified party under Section 7(a) or 7(b) hereof for any legal expenses of
other counsel or any other expenses, in each case subsequently incurred by such indemnified
party, in connection with the defense thereof other than reasonable costs of investigation.
The indemnified party shall have the right to employ its own counsel in any such action, but
the fees and expenses of such counsel shall be at the expense of such indemnified party
unless (i) the employment of counsel by such indemnified party at the expense of the
indemnifying party has been authorized by the indemnifying party, (ii) the indemnified party
shall have been advised by such counsel that there may be a conflict of interest between the
indemnifying party and the indemnified party in the conduct of the defense, or certain
aspects of the defense, of such action (in which case the indemnifying party shall not have
the right to direct the defense of such action with respect to those matters or aspects of
the defense on which a conflict exists or may exist on behalf of the indemnified party) or
(iii) the indemnifying party shall not in fact have employed counsel reasonably satisfactory
to such indemnified party to assume the defense of such action, in any of which events such
fees and expenses to the extent applicable shall be borne, and shall be paid as incurred, by
the indemnifying party. If at any time such indemnified party shall have requested such
indemnifying party under Section 7(a) or 7(b) hereof to reimburse such indemnified party for
fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 7(a) or 7(b) hereof effected without its
written consent if (i) such settlement is entered into more than 60 days after receipt by
such indemnifying party of such request for reimbursement, (ii) such indemnifying party
shall have received notice of the terms of such settlement at least 45 days prior to such
settlement being entered into and (iii) such indemnifying party shall not have reimbursed
such indemnified party in accordance with such request for reimbursement prior to the date
of such settlement. No such indemnifying party shall, without the written consent of such
indemnified party, effect the settlement or compromise of, or consent to the entry of any
judgment with respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not such indemnified
party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (A) includes an unconditional release of such indemnified party from
all liability arising out of such action or claim and (B) does not include a statement as to
or an admission of fault, culpability or a failure to act, by or on behalf of any such
indemnified party. In no event shall such indemnifying parties be liable for the fees and
expenses of more than one counsel, other than one local counsel, for all such indemnified
parties in connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
(d) If the indemnification provided for in this Section 7 is unavailable to or
insufficient to indemnify or hold harmless an indemnified party under Section 7(a) or 7(b)
hereof in respect of any losses, damages or liabilities (or actions or claims in respect
thereof) referred to therein, then each indemnifying party under Section 7(a) or 7(b) hereof
shall contribute to the amount paid or payable by such indemnified party as a result of such
losses, damages or liabilities (or actions or claims in respect thereof) in such proportion
as is appropriate to reflect the relative benefits received by the Suburban Parties, on the
one hand, and the Underwriters, on the other hand, from the offering of the Units. If,
however, the allocation provided by the immediately preceding sentence is not
30
permitted by applicable law or if the indemnified party failed to give the notice
required under Section 7(c) hereof and such indemnifying party was prejudiced in a material
respect by such failure, then each such indemnifying party shall contribute to such amount
paid or payable by such indemnified party in such proportion as is appropriate to reflect
not only such relative benefits but also the relative fault, as applicable, of the Suburban
Parties, on the one hand, and the Underwriters, on the other hand, in connection with the
statements or omissions that resulted in such losses, damages or liabilities (or actions or
claims in respect thereof), as well as any other relevant equitable considerations. The
relative benefits received by, as applicable, the Suburban Parties, on the one hand, and the
Underwriters, on the other hand, shall be deemed to be in the same proportion as the total
gross proceeds from such offering (before deducting expenses) received by the Suburban
Parties bear to the total underwriting discounts and commissions received by the
Underwriters. The relative fault, as applicable, of the Suburban Parties, on the one hand,
and the Underwriters, on the other hand, shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Suburban
Parties, on the one hand, or the Underwriters, on the other hand, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Suburban Parties and the Underwriters agree that it would not be
just and equitable if contribution pursuant to this Section 7(d) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to above in this Section 7(d). The amount paid or payable by such
an indemnified party as a result of the losses, damages or liabilities (or actions or claims
in respect thereof) referred to above in this Section 7(d) shall be deemed to include any
legal or other expenses incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this Section 7(d),
no Underwriter shall be required to contribute any amount in excess of the amount by which
the total price at which the Units underwritten by it and distributed to the public were
offered to the public exceeds the amount of any damages that such Underwriter has otherwise
been required to pay by reason of such 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 0000 Xxx) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.
(e) The obligations of the Suburban Parties under this Section 7 shall be in addition
to any liability that the Suburban Parties may otherwise have and shall extend, upon the
same terms and conditions, to each officer, director, employee, agent or other
representative of each Underwriter and to each person, if any, who controls any Underwriter
within the meaning of the 1933 Act; and the obligations of each of the Underwriters under
this Section 7 shall be in addition to any liability that the respective Underwriter may
otherwise have and shall extend, upon the same terms and conditions, to each officer and
Supervisor who signed the Registration Statement and to each person, if any, who controls
the Suburban Parties within the meaning of the 1933 Act.
8. Representations and Agreements to Survive Delivery. The respective representations,
warranties, agreements and statements of the Suburban Parties and the
31
Underwriters, as set forth in this Agreement or made by or on behalf of them, respectively,
pursuant to this Agreement, shall remain operative and in full force and effect regardless of any
investigation (or any statement as to the results thereof) made by or on behalf of any Underwriter
or any controlling person of any Underwriter, the Suburban Parties or any of their officers,
directors, Supervisors or any controlling persons and shall survive delivery of and payment for the
Units hereunder.
9. Defaulting Underwriter. 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 Firm Units that the defaulting Underwriter agreed but failed to
purchase on such Delivery Date in the respective proportions that the number of Firm Units set
forth opposite the name of each remaining non-defaulting Underwriter in Schedule I hereto bears to
the total number of Firm Units set forth opposite the names of all the remaining non-defaulting
Underwriters in Schedule I hereto; provided, however, that the remaining non-defaulting
Underwriters shall not be obligated to purchase any of the Firm Units on such Delivery Date if the
total number of Firm Units that the defaulting Underwriter or Underwriters agreed but failed to
purchase on such date exceeds 9.09% of the total number of Firm Units 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 the Firm Units 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 Underwriters 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 Firm Units to be purchased on such Delivery Date. If the remaining Underwriters, or
other underwriters satisfactory to the Underwriters, do not elect to purchase the Firm Units that
the defaulting Underwriter or Underwriters agreed but failed to purchase on such Delivery Date,
this Agreement shall terminate without liability on the part of any non-defaulting Underwriter or
any Suburban Party except that the Partnership will continue to be liable for the payment of
expenses to the extent set forth in Section 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 I hereto who, pursuant to this Section 9, purchases Firm Units 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 Partnership for damages caused by its default. If other Underwriters are obligated or agree
to purchase the Firm Units of a defaulting or withdrawing Underwriter, either the Underwriters or
the Partnership may postpone such Delivery Date for up to seven full business days in order to
effect any changes that in the opinion of counsel for the Partnership or counsel for the
Underwriters may be necessary in the Registration Statement, the Disclosure Package, the Final
Prospectus or in any other document or arrangement.
10. Termination.
(a) This Agreement may be terminated by the Representatives at any time at or prior to
the Initial Delivery Date by notice to the Partnership if any condition specified in Section
6 hereof shall not have been satisfied on or prior to the Initial Delivery Date.
32
Any such termination shall be without liability of any party to any other party except
as provided in Sections 7 and 11 hereof.
(b) This Agreement also may be terminated by the Representatives, by notice to the
Partnership, as to any obligation of the Underwriters to purchase the Option Units, if any
condition specified in Section 6 hereof shall not have been satisfied at or prior to the
Option Unit Delivery Date or as provided in Section 9 of this Agreement.
If the Representatives terminate this Agreement as provided in Sections 10(a) or 10(b), they
shall notify the Partnership by telephone or email, confirmed by letter.
11. Costs and Expenses. The Partnership will bear and pay the costs and expenses incident to
the registration of the Units and public offering thereof, including, without limitation, (a) all
expenses (including transfer taxes) incurred in connection with the delivery to the several
Underwriters of the Units, the filing fees of the Commission, the fees and expenses of the
Partnership’s counsel and accountants; (b) the preparation, printing, filing, delivery and shipping
of the Registration Statement, each Preliminary Prospectus, the Final Prospectus, each Issuer Free
Writing Prospectus and any amendments or supplements thereto and the printing, delivery and
shipping of this Agreement and other underwriting documents, including the Agreement Among
Underwriters, the Selected Dealer Agreement, Underwriters’ Questionnaires and Powers of Attorney
and Blue Sky Memoranda, and any instruments or documents related to any of the foregoing; (c) the
furnishing of copies of such documents to the Underwriters; (d) the registration or qualification
of the Units for offering and sale under the securities laws of the various states and other
jurisdictions, including the fees and disbursements of counsel to the Underwriters relating to such
registration or qualification and in connection with preparing any Blue Sky Memoranda or related
analysis; (e) the filing fees of FINRA (if any) and fees and disbursements of counsel to the
Underwriters relating to any review of the offering by FINRA; (f) all printing and engraving costs
related to preparation of the certificates for the Units, including transfer agent and registrar
fees; (g) all fees and expenses relating to the authorization of the Units for trading on the NYSE;
(h) all travel expenses, including air fare and accommodation expenses, of representatives of the
Partnership in connection with the offering of the Units; (i) the costs and expenses of the
Partnership relating to investor presentations on any “road show” undertaken in connection with the
marketing of the offering of the Units, including, without limitation, expenses associated with the
production of road show slides and graphics, fees and expenses of any consultants engaged in
connection with the road show presentations with the prior approval of the Partnership, travel and
lodging expenses of the representatives and officers of the Partnership and any such consultants
and (j) all of the other costs and expenses incident to the performance by the Partnership of the
registration and offering of the Units; provided, that (except as otherwise provided in this
Section 11) the Underwriters will bear and pay all of their own costs and expenses, including the
fees and expenses of the Underwriters’ counsel and the Underwriters’ transportation expenses.
If this Agreement is terminated by the Underwriters in accordance with the provisions of
Section 10(a), the Partnership shall reimburse the Underwriters for all of their reasonable
out-of-pocket expenses, including the reasonable fees and disbursements of counsel to the
Underwriters.
33
12. Notices. All notices or communications hereunder, except as herein otherwise specifically
provided, shall be in writing and if sent to the Representatives shall be mailed, delivered or sent
by facsimile transmission and confirmed c/o Wells Fargo Securities, LLC, 000 Xxxx Xxxxxx, Xxx Xxxx,
Xxx Xxxx, 00000, Attention: Equity Syndicate Department, Fax: (000) 000-0000; Xxxxxxx Lynch,
Pierce, Xxxxxx & Xxxxx Incorporated, Xxx Xxxxxx Xxxx, Xxx Xxxx, Xxx Xxxx, 00000, Attention:
Syndicate Department, Fax: (000) 000-0000 with a copy to Attention: ECM Legal, Fax: (000) 000-0000;
Citigroup Global Markets Inc., 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, Attention: General
Counsel, Fax: (000) 000-0000; and Xxxxxxx, Xxxxx & Co., 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Registration Department; or if sent to the Partnership shall be mailed, delivered, sent
by facsimile transmission, or emailed and confirmed to the Partnership at Suburban Propane
Partners, L.P., 000 Xxxxx 00 Xxxx, Xxxxxxxx, Xxx Xxxxxx 00000, Attention: Vice President and
Treasurer, Fax: 000-000-0000 at xxxxxxxxxx@xxxxxxxxxxxxxxx.xxx; and if sent to any other party,
shall be given at the address set forth on the signature page hereof. Notice to any Underwriter
pursuant to Section 7 shall be mailed, delivered, sent by facsimile transmission, or emailed and
confirmed to such Underwriter’s address as it appears in the Underwriters’ Questionnaire furnished
in connection with the offering of the Units or as otherwise furnished to the Partnership.
13. Information Furnished by Underwriters. The statements set forth (i) in the third paragraph
on the cover page regarding delivery of the Units, and under the caption “Underwriting,” (ii) the
list of Underwriters and their respective participations in the sale of the Units included in the
table under the first paragraph under the caption “Underwriting,” (iii) the sentences related to
concessions and reallowances under the caption “Underwriting” and (iv) the paragraphs under heading
“Price Stabilization, Short Positions and Penalty Bids” under the caption “Underwriting”, in each
of the Disclosure Package and the Final Prospectus, constitute the only information furnished by or
on behalf of the Underwriters, as such information is referred to in Section 4(f), (g), (h) and (i)
and Section 7 hereof.
14. Parties. This Agreement shall inure to the benefit of and be binding upon the
Underwriters, the Suburban Parties, their respective successors and assigns and the officers,
Supervisors, directors, employees, agents, representatives and controlling persons referred to in
Section 7 hereof (to the extent provided in Sections 7 and 8) and their respective heirs,
executors, administrators, successors and assigns. Nothing expressed or mentioned in this Agreement
is intended or shall be construed to give any person, corporation or other entity any legal or
equitable right, remedy or claim under or in respect of this Agreement or any provision herein
contained; this Agreement and all conditions and provisions hereof being intended to be and being
for the sole and exclusive benefit of the parties hereto and their respective successors and
assigns and said controlling persons and said officers, Supervisors and directors, and for the
benefit of no other person, corporation or other entity. No purchaser of any of the Units from any
Underwriter shall be construed a successor or assign by reason merely of such purchase.
15. Research Independence. The Partnership 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 and make statements or investment recommendations and/or
publish research reports with respect to the Partnership and/or the offering that differ from the
views of its investment bankers. The Partnership hereby waives and
34
releases, to the fullest extent permitted by law, any claims that the Partnership 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 Partnership by such
Underwriters’ investment banking divisions. The Partnership 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.
16. No Fiduciary Duty. Notwithstanding any preexisting relationship, advisory or otherwise,
between the parties or any oral representations or assurances previously or subsequently made by
the Underwriters, the Suburban Parties acknowledge and agree that: (i) nothing herein shall create
a fiduciary or agency relationship between any of the Suburban Parties, on the one hand, and the
Underwriters, on the other; (ii) the Underwriters are not acting as advisors, expert or otherwise,
to the Suburban Parties in connection with this offering, the sale of the Units or any other
services the Underwriters may be deemed to be providing hereunder, including, without limitation,
with respect to the public offering price of the Units; (iii) the relationship between the Suburban
Parties, on the one hand, and the Underwriters, on the other, is entirely and solely commercial,
based on arms-length negotiations; (iv) any duties and obligations that the Underwriters may have
to the Suburban Parties shall be limited to those duties and obligations specifically stated
herein; and (v) notwithstanding anything in this Agreement to the contrary, each of the Suburban
Parties acknowledges that the Underwriters’ may have financial interest in the success of the
offering that are not limited to the difference between the price to the public and the purchase
price paid to the Partnership by the Underwriters for the Units, and the Underwriters have no
obligation to disclose, or account to the Partnership for, any of such additional financial
interests. Each of the Suburban Parties hereby waives and releases, to the fullest extent
permitted by law, any claims that any of the Suburban Parties may have against the Underwriters
with respect to any breach or alleged breach of fiduciary duty with respect to the transactions
contemplated by this Agreement.
17. Counterparts. This Agreement may be executed (including by facsimile transmission) with
the counterpart signature page or by any one or more of the parties hereto in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same instrument.
18. Pronouns. Whenever a pronoun of any gender or number is used herein, it shall, where
appropriate, be deemed to include any other gender and number.
19. Time of Essence. Time shall be of the essence of this Agreement.
20. Applicable Law. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of New York, without giving effect to the choice of law or conflict of laws
principles thereof.
[Signature Pages Follow]
35
If the foregoing is in accordance with your understanding, please so indicate in the space
provided below for that purpose, whereupon this letter shall constitute a binding agreement among
the Suburban Parties and the Underwriters.
Suburban Propane Partners, L.P. |
||||
By: | /s/ Xxxxxxx X. Xxxx, Xx. | |||
Name: | Xxxxxxx X. Xxxx, Xx. | |||
Title: | President | |||
Suburban Propane, L.P. |
||||
By: | /s/ Xxxxxxx X. Xxxx, Xx. | |||
Name: | Xxxxxxx X. Xxxx, Xx. | |||
Title: | President | |||
[Signature Page to Underwriting Agreement]
ACCEPTED in New York, New York,
as of the date first above written.
as of the date first above written.
Xxxxx Fargo Securities, LLC |
||||
By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Director | |||
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated |
||||
By: | /s/ X.X. Xxxxxxxx | |||
Name: | X.X. Xxxxxxxx | |||
Title: | Managing Director | |||
Citigroup Global Markets Inc. |
||||
By: | /s/ Xxxxxx Xxxxxxxxxx | |||
Name: | Xxxxxx Xxxxxxxxxx | |||
Title: | Director | |||
Xxxxxxx, Sachs & Co. |
||||
By: | /s/ Xxxxxxx Xxxxx & Co. | |||
Name: | Xxxxxxx Park | |||
Title: | Managing Director | |||
For themselves and the other several Underwriters named in Schedule I to the foregoing Agreement.
[Signature Page to Underwriting Agreement]
SCHEDULE I
Allocation of Units
Name | Number of Units | |||
Xxxxx Fargo Securities, LLC |
440,000 | |||
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated |
440,000 | |||
Citigroup Global Markets Inc. |
440,000 | |||
Xxxxxxx, Sachs & Co. |
440,000 | |||
X.X. Xxxxxx Securities Inc. |
220,000 | |||
Xxxxxxx Xxxxx & Associates, Inc. |
220,000 | |||
Total |
2,200,000 | |||
Schedule I
SCHEDULE II
Issuer Free Writing Prospectus
None
Pricing Information
Public Offering Price per Unit: |
$41.50 | |
Net Proceeds, After Deducting Underwriters Discounts
and Commission and Before Estimated Offering Expenses: |
$87,450,000 |
Schedule II
Schedule III
Operating Subsidiaries
Entity: | Foreign Qualifications: | |
Suburban LP Holding, Inc. (Delaware)
|
N/A | |
Suburban LP Holding, LLC (Delaware)
|
N/A | |
Suburban Energy Finance Corp. (Delaware)
|
N/A | |
Suburban Sales & Services, Inc. (Delaware)
|
Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming |
|
Agway Energy Services, LLC (Delaware)
|
New York, Pennsylvania | |
Suburban Heating Oil Partners, LLC (Delaware) |
All 50 states and the District of Columbia | |
Gas Connection, LLC (Oregon)
|
New Jersey, Maryland | |
Suburban Franchising, LLC (Nevada)
|
Arizona, California, Florida, New Jersey, New York, North Carolina, South Carolina, Virginia |
Schedule III
Schedule IV
Non-Operating Subsidiaries
Entity: | Foreign Qualifications: | |
Suburban Propane Gas Corporation (Delaware) (pending dissolution) |
Alaska, Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia | |
Suburban Plumbing New Jersey LLC* (Delaware)
|
New Jersey | |
Suburban Albany Property, LLC (Delaware)
|
New York | |
Suburban Xxxxxx Xxxxxx Street Property, LLC (Delaware) |
Pennsylvania | |
Suburban Canton Buck Street Property, LLC (Delaware)
|
New York | |
Suburban Canton Route 11 Property, LLC (Delaware)
|
New York | |
Suburban Chambersburg Fifth Avenue Property, LLC (Delaware) |
Pennsylvania | |
Suburban Xxxxxxxxx Depot Property, LLC (Delaware)
|
New York | |
Suburban Gettysburg Property, LLC (Delaware)
|
Pennsylvania | |
Suburban Lewistown Property, LLC (Delaware)
|
Pennsylvania | |
Suburban MA Surplus Property, LLC (Delaware)
|
Massachusetts | |
Suburban Xxxxx Property, LLC (Delaware)
|
Xxx Xxxx | |
Xxxxxxxx Xxxxxxxxxx Xxxxx Xxxxxx Property, LLC (Delaware) |
New York | |
Suburban New Xxxxxxx Xxxxx Street Property, LLC (Delaware) |
Pennsylvania | |
Suburban NJ Property Acquisitions, LLC (Delaware)
|
New Jersey | |
Suburban NJ Surplus Property, LLC (Delaware)
|
New Jersey | |
Suburban NY Property Acquisitions, LLC (Delaware)
|
New York | |
Suburban NY Surplus Property, LLC (Delaware)
|
New York | |
Suburban PA Property Acquisitions, LLC (Delaware)
|
Pennsylvania | |
Suburban PA Surplus Property, LLC (Delaware)
|
Pennsylvania | |
Suburban Rochester Property, LLC (Delaware)
|
New York | |
Suburban Sodus Property, LLC (Delaware)
|
New York | |
Suburban Temple Property, LLC (Delaware)
|
New York | |
Suburban Xxxxxxx Property, LLC (Delaware)
|
Pennsylvania | |
Suburban Verbank Property, LLC (Delaware)
|
New York | |
Suburban Vineland Property, LLC (Delaware)
|
New Jersey | |
Suburban VT Property Acquisitions, LLC (Delaware)
|
New Hampshire, Vermont | |
Suburban Xxxxxx Property, LLC (Delaware)
|
New York | |
Suburban Washington Property, LLC (Delaware)
|
New Jersey |
* | The Partnership holds a 90% membership interest in Suburban Plumbing New Jersey LLC. |
Schedule IV
Exhibit A
Form of Lock-Up Letter
August 11, 2009
Xxxxx Fargo Securities, LLC
Xxxxxxx, Sachs & Co.
As Representatives of the several Underwriters
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Citigroup Global Markets Inc.Incorporated
Xxxxxxx, Sachs & Co.
As Representatives of the several Underwriters
c/o Wells Fargo Securities, LLC
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Dear Sirs:
The undersigned understands that you, as representatives (the “Representatives”) of the
Underwriters (the “Underwriters”) named in Schedule I of the Underwriting Agreement (hereinafter
defined), propose to enter into an Underwriting Agreement (the “Underwriting Agreement”) with the
Suburban Parties providing for the purchase by the Underwriters of common units, each representing
a limited partner interest in the Partnership (the “Common Units”), and that the Underwriters
propose to reoffer the Common Units to the public (the “Offering”). Capitalized terms used but not
defined herein have the meanings given to them in the Underwriting Agreement.
In consideration of the execution of the Underwriting Agreement by you, and for other good and
valuable consideration, the undersigned hereby irrevocably agrees that, without the prior written
consent of the Representatives, the undersigned will not, directly or indirectly, (1) offer for
sale, sell, pledge, announce the intention to sell or otherwise dispose of (or enter into any
transaction or device that is designed to, or could be expected to, result in the disposition by
any person at any time in the future of) any Common Units (including, without limitation, Common
Units that may be deemed to be beneficially owned by the undersigned in accordance with the rules
and regulations of the U.S. Securities and Exchange Commission, including, without limitation, any
Common Units that may be issued upon exercise of any option, right or warrant) or securities
convertible into or exchangeable for Common Units owned by the undersigned on the date of execution
of this Lock-Up Letter Agreement or on the date of the completion of the Offering, (2) enter into
any swap or other derivatives transaction that transfers to another, in whole or in part, any of
the economic benefits or risks of ownership of such Common Units, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of Common Units or other
securities, in cash or otherwise, or (3) publicly disclose the intention to do any of the
foregoing, in each case without the prior written consent of the Representatives; for a period of
60 days from the date of the Final Prospectus; provided, however that the foregoing restrictions
shall not apply to any transfer of any or all of the common units owned by the unitholder
(including but not limited to any transfer pursuant to a domestic
relations order (as defined in the Internal Revenue Code or Title I of the Employee Retirement
Income Security Act, as amended) or otherwise to a spouse or ex-spouse in connection with legal
separation or divorce), either during the unitholder’s lifetime or on death, by gift, will or
intestate succession to the immediate family of the unitholder or to a trust the beneficiaries of
which are exclusively the unitholder and/or a member or members of its immediate family; provided
further, however, that in any such case it shall be a pre-condition to a transfer pursuant to the
immediately preceding proviso that (a) the transferee or donee executes and delivers to the
Representatives a lock-up agreement in form and substance satisfactory to the Representatives, (b)
no filing by any party (transferor, transferee, donor or donee) under the 1934 Act shall be
required or shall be voluntarily made in connection with such transfer or distribution (other than
a filing on a Form 5, Schedule 13D or Schedule 13G (or 13D A or 13G A) made after the expiration of
the 60 day period from the date of the Final Prospectus) and (c) each party (transferor,
transferee, donor or donee) shall not be required by law (including without limitation the
disclosure requirements of the 1933 Act and the 0000 Xxx) to make, and shall agree to not
voluntarily make, any public announcement of the transfer or disposition.
In furtherance of the foregoing, the Partnership and its Transfer Agent are hereby authorized
to decline to make any transfer of securities if such transfer would constitute a violation or
breach of this Lock-Up Letter Agreement.
It is understood that if the Partnership notifies you that it does not intend to proceed with
the Offering, if the Underwriting Agreement does not become effective or if the Underwriting
Agreement (other than the provisions thereof that survive termination) shall terminate or be
terminated prior to payment for and delivery of the Common Units, the undersigned will be released
from [his/her] obligations under this Lock-Up Letter Agreement.
The undersigned understands that the Partnership and the Underwriters will proceed with the
Offering in reliance on this Lock-Up Letter Agreement.
Whether or not the Offering actually occurs depends on a number of factors, including market
conditions. Any Offering will only be made pursuant to an Underwriting Agreement, the terms of
which are subject to negotiation between the Partnership and the Underwriters.
The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will
execute any additional documents necessary in connection with the enforcement hereof. Any
obligations of the undersigned shall be binding upon the heirs and personal representatives of the
undersigned.
Yours very truly, |
||||
Exhibit B
Form of Proskauer Rose LLP Opinion
1. Each of the Delaware Entities is a validly existing limited partnership, limited
liability company or corporation, in good standing under the laws of the State of
Delaware, with the limited partnership, limited liability company or corporate power and
authority, as the case may be, to own its properties and conduct its business as described
in the Registration Statement, the Disclosure Package and the Final Prospectus.
2. The Common Units: (a) have been duly authorized; (b) when issued and delivered to
the Underwriters against payment therefor in accordance with the terms of the Underwriting
Agreement, will be validly issued, fully paid and (to the extent required under the
Partnership Agreement) non-assessable, except as may be described in the Registration
Statement, the Disclosure Package and the Final Prospectus; and (c) conform to the
description thereof contained in the Registration Statement, the Disclosure Package and
the Final Prospectus.
3. To our knowledge, except as described in the Registration Statement, the
Disclosure Package and the Final Prospectus, the unitholders of the Partnership have no
preemptive rights under the DRULPA or the Partnership Agreement or other rights to
subscribe for or to purchase any Common Units, nor is there any restriction upon the
voting or transfer of any Common Units pursuant to the Partnership Agreement.
4. The Partnership has requisite limited partnership power and authority to issue,
sell and deliver the Common Units to be sold pursuant to the Underwriting Agreement in
accordance with and upon the terms and conditions set forth in the Underwriting Agreement,
the Partnership Agreement, the Registration Statement, the Disclosure Package and the
Final Prospectus.
5. Except as otherwise disclosed in the Registration Statement, the Disclosure
Package and the Final Prospectus, there are no contracts, agreements or understandings
known to us between the Delaware Entities and any person granting such person the right to
require the Partnership to file a registration statement under the Securities Act of 1933,
as amended (the “1933 Act”), with respect to any securities of the Partnership
owned or to be owned by such person or to require the Partnership 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
Partnership under the 1933 Act.
6. No consent, approval, authorization or order of, or filing with, any New York or
U.S. federal governmental agency, body or court or with any Delaware governmental agency,
body or court pursuant to the DRULPA, the DLLCA or the DGCL, in each case as applicable to
the Partnership or OP, is required to be obtained or made by the Partnership or OP in
connection with offering, issuance and sale by the
Partnership of the Units or by the Partnership or OP in connection with the
execution, delivery and performance of the Underwriting Agreement on the part of the
Partnership and OP or for the consummation of the transactions contemplated by the
Underwriting Agreement in connection with the sale of the Common Units, except (a) for
such consents required under the 1933 Act, the 1933 Act Rules and Regulations, the
Securities Exchange Act of 1934, as amended (the “1934 Act”) or the 1934 Act Rules
and Regulations, and (b) state securities or “blue sky” laws and applicable rules and
regulations under such laws, as to which we express no opinion, (c) for such consents that
have been obtained or made, (d) for such consents that (i) are of a routine or
administrative nature, (ii) are not customarily obtained or made prior to the consummation
of transactions such as those contemplated by the Underwriting Agreement, and (iii) are
expected in the reasonable judgment of the board of supervisors of the Partnership or OP,
as applicable, to be obtained or made in the ordinary course of business subsequent to the
consummation of the transactions contemplated by the Underwriting Agreement, (e) for such
consents which, if not obtained or made, would not, individually or in the aggregate, have
a Material Adverse Effect, (f) as disclosed in the Disclosure Package, or (g) we express
no opinion with respect to the Conduct Rules of FINRA.
7. The statements set forth in the Registration Statement, the Disclosure Package and
the Final Prospectus under the captions “Material Tax Considerations,” “Description of the
Common Units” and “Tax Considerations for Unitholders”, insofar as such statements
constitute summaries of documents or legal proceeds or refer to matters of law or legal
conditions, are accurate and complete in all material respects. The Common Units conform
in all material respects to the descriptions thereof contained in the Registration
Statement, the Disclosure Package and the Final Prospectus.
8. None of the offering, issuance and sale by the Partnership he execution, delivery
and performance of the Underwriting Agreement by the Suburban Parties and the consummation
of the transactions therein contemplated by the Suburban Parties (a) constitutes or will
constitute a breach or violation of any of the terms and provisions of, or constitute a
default under, any agreement filed or incorporated by reference as an Exhibit to the
Partnership’s (i) annual report on Form 10-K for the fiscal year ended September 27, 2008,
(ii) quarterly reports on Form 10-Q filed with the SEC since September 27, 2008, or (iii)
current reports on Form 8-K filed with the SEC since September 27, 2008; or (b) violates
or will violate the DRULPA, the DLLCA, the DGCL or U.S. federal law; provided,
however, that no opinion is expressed pursuant to this paragraph with respect to
federal or state securities laws, tax laws or antifraud laws.
9. The Registration Statement is an “automatic shelf registration statement” (as
defined in Rule 405 of the 1933 Act), and the Partnership is a well known, seasoned issuer
(as defined in said Rule 405). The Registration Statement, having been filed, is
effective. To our knowledge, no stop order suspending the effectiveness of the
Registration Statement or any part thereof has been issued and no proceedings for that
purpose have been instituted or are pending or contemplated under the 1933 Act. Any
filing of the Final Prospectus pursuant to Rule 424(b) has been made in the manner
and within the time period required by such Rule
10. Each of the Registration Statement and the Disclosure Package (except for the
financial statements and the notes and schedules thereto and the other financial and
accounting information included therein, as to which we express no opinion), as of their
respective effective or issue dates, appears on its face to have complied as to form in
all material respects with the requirements of the 1933 Act and the 1933 Act Rules and
Regulations.
11. The Underwriting Agreement has been duly authorized, executed and delivered by
the Suburban Parties.
12. Neither the offering, issuance and sale by the Partnership of the Common Units
nor the execution and delivery of the Underwriting Agreement by the Partnership violates
the Partnership Agreement. The execution and delivery of the Underwriting Agreement by OP
does not violate the OP Partnership Agreement.
13. The Partnership, after giving effect to the offering and sale of the Common
Units, will not be an “investment company” as such term is defined in the Investment
Company Act of 1940, as amended.
In the course of the preparation of the Registration Statement, the Disclosure Package and the
Final Prospectus, we have participated in conferences with certain officers and representatives of
the Partnership and OP, representatives of the independent registered public accounting firm for
the Partnership, and representatives of, and counsel for, the Underwriters, at which the contents
of the Registration Statement, Disclosure Package and Final Prospectus and related matters were
discussed and, although we are not passing upon and do not assume any responsibility for the
accuracy, completeness or fairness of the statements contained or incorporated by reference in the
Registration Statement, Disclosure Package, and Final Prospectus on the basis of the foregoing,
nothing has come to our attention that led us to believe that (i) the Registration Statement, at
the time it became effective, contained an untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary to make the statements therein not
misleading, (ii) the Disclosure Package, as of the date of the Underwriting Agreement and as of the
date hereof, contained or contains an untrue statement of a material fact or omitted or omits to
state a material fact required to be stated therein necessary in order to make the statements
therein, in light of the circumstances in which they were made, not misleading or (iii) the Final
Prospectus, as of its date and the date hereof, contained or contains an untrue statement of a
material fact or omitted or omits to state a material fact required to be stated therein necessary
to make the statements therein, in light of the circumstances under which they were made, not
misleading (it being understood that we make no comment and express no opinion with respect to (i)
the financial statements and related notes and schedules thereto and the auditors’ report thereon,
or any other financial and accounting data or information included in, omitted therefrom or derived
therefrom contained or incorporated by reference in the Registration Statement, the Disclosure
Package or the Final Prospectus, or (ii) representations and warranties included in the exhibits to
the Registration Statement or any of the Incorporated Documents).
Exhibit C
Form of Opinion of Xxxx Xxxx
1. Each of the entities described in clauses (i)-(xi) above (the “SP Entities”)
is duly organized and is duly registered or qualified to do business and is in good standing
as a foreign limited partnership, foreign limited liability company or foreign corporation,
as the case may be, in each jurisdiction in which its ownership or lease of property or the
conduct of its businesses requires such registration or qualification, except where the
failure so to register or qualify would not (i) have a Material Adverse Effect or (ii)
subject the limited partners of the Partnership to any material liability or disability.
2. The Sole Member owns 100% of the outstanding limited liability company interests in
the General Partner; all of such interests have been duly authorized and validly issued in
accordance with the Second Amended and Restated Limited Liability Company Agreement of the
General Partner (“General Partner LLC Agreement”) and are fully paid (to the extent
required under the General Partner LLC Agreement) and non-assessable (except as such
non-assessability may be affected by Sections 18-607 and 18-804 of the Delaware LLC Act),
and to my knowledge the Sole Member owns such interests free and clear of all liens,
encumbrances (except as described in the Registration Statement, the Disclosure Package and
the Final Prospectus), security interests, equities, charges or claims (i) in respect of
which a financing statement under the Uniform Commercial Code of the State of Delaware
naming the Sole Member as debtor is on file as of a recent date in the office of the
Secretary of State of the State of Delaware or (ii) otherwise known to me, other than those
created by or arising under the Delaware LLC Act.
3. The General Partner owns 100% of the outstanding general partner interests in the
Operating Partnership, the Partnership directly owns 99.9% of the outstanding limited
partner interests in the Operating Partnership and the Partnership indirectly owns 0.1% of
the outstanding limited partner interests in the Operating Partnership; all of such
interests have been duly authorized and validly issued in accordance with the Third Amended
and Restated Agreement of Limited Partnership of the Operating Partnership, as amended (the
“Operating Partnership LP Agreement”) and are fully paid (to the extent required
under the Operating Partnership LP Agreement) and non-assessable (except as such
non-assessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP
Act), and the General Partner and the Partnership own such interests free and clear of all
liens, encumbrances (except as described in the Registration Statement, the Disclosure
Package and the Final Prospectus and arising pursuant to that certain Credit Agreement and
related security agreements dated June 26, 2009 to which it is a party), security interests,
equities, charges or claims (i) in respect of which a financing statement under the Uniform
Commercial Code of the State of Delaware naming either of them as debtor is on file as of a
recent date in the office of the Secretary of State of the State of Delaware or (ii)
otherwise known to me, without independent investigation, other than those created by or
arising under the Delaware LP Act.
4. The Partnership or the Operating Partnership owns, directly or indirectly, 100% of
the limited liability company interests or capital stock, as the case may be, in the
Operating Subsidiaries; all such interests have been duly authorized and validly issued in
accordance with the Organizational Documents of the respective Operating Subsidiaries, and
are fully paid (to the extent required under their respective limited liability company
agreement) and non-assessable (except as such non-assessability may be affected by Sections
18-607 and 18-804 of the Delaware LLC Act, in the case of a Delaware limited liability
company; Section 63.235 of the Oregon Revised Statutes, in the case of an Oregon limited
liability company, and Section 86.343 of the Nevada Revised Statutes, in the case of a
Nevada limited liability company), and the Partnership or the Operating Partnership owns
such interests free and clear of all liens, encumbrances, security interests, equities,
charges or claims (i) in respect of which a financing statement under the Uniform Commercial
Code of the State of Delaware naming the Partnership or the Operating Partnership as a
debtor is on file as of a recent date in the office of the Secretary of State of the State
of Delaware or (ii) otherwise known to me, without independent investigation, other than
those created by or arising under the Delaware LP Act, the Delaware LLC Act and the Delaware
General Corporation Law (except as described in the Registration Statement, the Disclosure
Package and the Final Prospectus and arising pursuant to that certain Credit Agreement and
related security agreements dated June 26, 2009 to which it is a party). Except for
Suburban Plumbing New Jersey, LLC and for Suburban Propane Gas Corporation (for which
dissolution has been applied for), the Partnership or the Operating Partnership owns,
directly or indirectly, 100% of the limited liability company interests in the Non-Operating
Subsidiaries; all such interests have been duly authorized and validly issued in accordance
with the Organizational Documents of the respective Non-Operating Subsidiaries, and are
fully paid (to the extent required under their respective limited liability company
agreement) and non-assessable (except as such non-assessability may be affected by Sections
18-607 and 18-804 of the Delaware LLC Act, in the case of a Delaware limited liability
company; Section 63.235 of the Oregon Revised Statutes, in the case of an Oregon limited
liability company, and Section 86.343 of the Nevada Revised Statutes, in the case of a
Nevada limited liability company), and the Partnership or the Operating Partnership owns
such interests free and clear of all liens, encumbrances, security interests, equities,
charges or claims (i) in respect of which a financing statement under the Uniform Commercial
Code of the State of Delaware naming the Partnership or the Operating Partnership as a
debtor is on file as of a recent date in the office of the Secretary of State of the State
of Delaware or (ii) otherwise known to me, without independent investigation, other than
those created by or arising under the Delaware LP Act, the Delaware LLC Act and the Delaware
General Corporation Law (except as described in the Registration Statement, the Disclosure
Package and the Final Prospectus and arising pursuant to that certain Credit Agreement and
related security agreements dated June 26, 2009 to which it is a party and except for such
liens, encumbrances, security interests, equities, charges and other claims, the existence
of which, would not, individually or in the aggregate, result in a Material Adverse Effect
or materially impair the ability of the Partnership and the Operating Partnership to perform
their obligations under the Underwriting Agreement).
5. The Partnership has an authorized capitalization as set forth in the final
Prospectus Supplement, and all of the issued and outstanding Common Units of the Partnership
have been duly and validly authorized and issued and are fully paid and non-assessable
(except as such non-assessability may be affected by Sections 17-303, 17-607 and 17-804 of
the Delaware LP Act); and the Units conform in all material respects to the description of
the Common Units contained in the Registration Statement, the Disclosure Package and the
Final Prospectus.
6. To my knowledge, except as described in the Registration Statement, the Disclosure
Package and the Final Prospectus and except for options (including restricted units) granted
pursuant to employee benefit plans, qualified unit option plans or other employee
compensation plans, there are no outstanding options or warrants to purchase any capital
stock, partnership interests or membership interests in any of the SP Entities.
7. To my knowledge, except as described in the Registration Statement, the Disclosure
Package and the Final Prospectus, there are no preemptive rights under the Delaware LP Act
or the Partnership Agreement or other rights to subscribe for or to purchase any Common
Units, nor is there any restriction upon the voting or transfer of any Common Units pursuant
to the Partnership Agreement. To my knowledge, neither the filing of the Registration
Statement, the Disclosure Package or the Final Prospectus, nor the offering, issuance or
sale of the Units as contemplated by the Underwriting Agreement, gives rise to any rights
for or relating to the registration of any Common Units or other securities of the
Partnership that have not been waived.
8. Each of the Organizational Documents to which any of the SP Entities or any of their
respective affiliates is a party has been duly authorized and validly executed and delivered
by each of the SP Entities party thereto. Each of the applicable limited partnership
agreements (in the case of a limited partner) and the applicable limited liability company
agreements (in the case of a limited liability company) constitutes a valid and legally
binding agreement of the parties thereto, enforceable against each of them in accordance
with its respective terms, subject to (i) applicable bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (ii) public policy and
other applicable laws relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.
9. To my knowledge, (i) there are no legal or governmental proceedings pending or
threatened against any of the SP Entities or any of their respective affiliates or to which
any of the SP Entities or any of their respective affiliates is a party or to which any of
their respective properties is subject that are required to be described in the Registration
Statement, the Disclosure Package or the Final Prospectus but are not so described as
required and (ii) there are no agreements, contracts, indentures, leases or other
instruments that are required to be described in the Registration Statement, the Disclosure
Package or the Final Prospectus or to be filed as exhibits to the Registration Statement
that are not described or filed as required by the 1933 Act or the 1933 Act Rules and
Regulations.
10. To my knowledge, none of the offering, issuance and sale by the Partnership, the
execution, delivery and performance of the Underwriting Agreement by the Suburban Parties
and the consummation of the transactions therein contemplated by the Suburban Parties
results or will result in the creation or imposition of any lien, charge or encumbrance upon
any property or assets of any of the SP Entities, which liens, charges or encumbrances
would, individually or in the aggregate, have a Material Adverse Effect.
In the course of the preparation of the Registration Statement, the Disclosure Package and the
Final Prospectus, I have participated in conferences with certain officers and representatives of
the Partnership and OP, representatives of the independent registered public accounting firm for
the Partnership, and representatives of, and counsel for, the Underwriters, at which the contents
of the Registration Statement, Disclosure Package and Final Prospectus and related matters were
discussed and, although I am not passing upon and do not assume any responsibility for the
accuracy, completeness or fairness of the statements contained or incorporated by reference in the
Registration Statement, Disclosure Package, and Final Prospectus on the basis of the foregoing,
nothing has come to my attention that led me to believe that (i) the Registration Statement, at the
time it became effective, contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading, (ii) the Disclosure Package, as of the date of the Underwriting Agreement and as of the
date hereof, contained or contains an untrue statement of a material fact or omitted or omits to
state a material fact required to be stated therein necessary in order to make the statements
therein, in light of the circumstances in which they were made, not misleading or (iii) the Final
Prospectus, as of its date and the date hereof, contained or contains an untrue statement of a
material fact or omitted or omits to state a material fact required to be stated therein necessary
to make the statements therein, in light of the circumstances under which they were made, not
misleading (it being understood that I make no comment and express no opinion with respect to (i)
the financial statements and related notes and schedules thereto and the auditors’ report thereon,
or any other financial and accounting data or information included in, omitted therefrom or derived
therefrom contained or incorporated by reference in the Registration Statement, the Disclosure
Package or the Final Prospectus, or (ii) representations and warranties included in the exhibits to
the Registration Statement or any of the documents incorporated by reference therein).