8,750,000 Common Units OXFORD RESOURCE PARTNERS, LP Representing Limited Partner Interests FORM OF UNDERWRITING AGREEMENT
Exhibit 1.1
8,750,000 Common Units
OXFORD RESOURCE PARTNERS, LP
Representing Limited Partner Interests
FORM OF
June [__], 2010
Barclays Capital Inc.
Citigroup Global Markets Inc.,
As Representatives of the several
Underwriters named in Schedule 1 attached hereto
Citigroup Global Markets Inc.,
As Representatives of the several
Underwriters named in Schedule 1 attached hereto
c/o Barclays Capital Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Oxford Resource Partners, LP, a Delaware limited partnership (the “Partnership”), proposes to
sell to the underwriters (the “Underwriters”) named in Schedule 1 attached to this
agreement (this “Agreement”) 8,750,000 common units (the “Firm Units”) representing limited partner
interests in the Partnership (“Common Units”). In addition, the Partnership proposes to grant to
the Underwriters an option to purchase up to 1,312,500 additional Common Units on the terms set
forth in Section 2 (the “Option Units”). The Firm Units and the Option Units, if purchased, are
hereinafter collectively called the “Units.”
This is to confirm the agreement among the Partnership, Oxford Resources GP, LLC, a Delaware
limited liability company and the general partner of the Partnership (the “General Partner”), and
Oxford Mining Company, LLC, an Ohio limited liability company and a wholly owned subsidiary of the
Partnership (the “Operating Company” and, together with the Partnership and the General Partner,
the “Partnership Parties”), concerning the purchase of the Units from the Partnership by the
Underwriters.
On the Initial Delivery Date (as defined in Section 4), immediately prior to the closing of
the offering of the Firm Units:
(a) the Partnership will distribute the right to receive cash of $21.0 million collected from
accounts receivable outstanding as of June ___, 2010, which right will be distributed to the General
Partner, C&T Coal, Inc., an Ohio corporation (“C&T Coal”), AIM Oxford Holdings, LLC, a Delaware
limited liability company (“AIM Oxford”), and the participants in the Oxford Resource Partners, LP
Amended and Restated Long-Term Incentive Plan that hold the Partnership’s common units at that time
(the “LTIP Participants”), pro rata, in accordance with their respective interests in the
Partnership;
(b) each general partner unit held by the General Partner will automatically split into 1.82
general partner units, with the result that the General Partner will own an aggregate of 244,607
general partner units, representing a 2.0% general partner interest in the Partnership;
(c) each Class A common unit held by an LTIP Participant will automatically split into 1.82
Class A common units, with the result that the LTIP Participants will own an aggregate of 126,577
Class A common units, representing an aggregate 1.0% limited partner interest in the Partnership;
(d) each Class B common unit held by C&T Coal will automatically split into 1.82 Class B
common units, with the result that C&T Coal will own an aggregate of 3,999,696 Class B common
units, representing an aggregate 32.7% limited partner interest in the Partnership; and
(e) each Class B common unit held by AIM Oxford will automatically split into 1.82 Class B
common units, with the result that AIM Oxford will own an aggregate of 7,859,487 Class B common
units, representing an aggregate 64.3% limited partner interest in the Partnership.
The transactions contemplated in clauses (a) through (e) above are referred to herein as the
“Pre-Closing Transactions.”
Upon the closing of the offering of the Firm Units:
(a) all of the Class B common units held by C&T Coal will automatically convert into (i)
532,476 Common Units, representing a 2.5% limited partner interest in the Partnership, and (ii)
3,467,220 subordinated units representing limited partner interests in the Partnership
(“Subordinated Units”), representing a 16.5% limited partner interest in the Partnership;
(b) all of the Class B common units held by AIM Oxford will automatically convert into (i)
1,046,327 Common Units, representing a 5.0% limited partner interest in the Partnership, and (ii)
6,813,160 Subordinated Units, representing a 32.5% limited partner interest in the Partnership;
(c) C&T Coal and AIM Oxford will contribute 59,022 Common Units and 115,978 Common Units,
respectively, to the General Partner as a capital contribution;
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(d) the General Partner will contribute the 175,000 Common Units contributed to it by C&T Coal
and AIM Oxford to the Partnership in exchange for 175,000 general partner units in order to
maintain its 2.0% general partner interest in the Partnership;
(e) the Third Amended and Restated Agreement of Limited Partnership of Oxford Resource
Partners, LP (as the same may be amended and restated on or prior to each Delivery Date, the
“Partnership Agreement”) will take effect, pursuant to which, among other things, the Class A
common units will be re-designated as Common Units;
(f) the Operating Company will enter into the Credit Agreement (the “Credit Agreement”) with
the lenders named therein; and
(g) the Partnership will use the net proceeds from the offering of the Firm Units and
concurrent borrowings under the Credit Agreement as described under the heading “Use of Proceeds”
in the most recent Preliminary Prospectus (as defined below), including, without limitation, to
purchase certain equipment pursuant to the lease termination and equipment purchase letter
agreements listed on Schedule 4 hereto (the “Lease Buyout Agreements”) previously entered into by
the Partnership and the Operating Company and the lessors named therein.
The transactions contemplated in clauses (a) through (e) above are referred to herein as the
“Concurrent Transactions,” and with the Pre-Closing Transactions are referred to herein as the
“Transactions.”
The Partnership, the General Partner, the Operating Company, Harrison Resources, LLC, an Ohio
limited liability company (“Harrison Resources”), Oxford Mining Company — Kentucky, LLC, a
Kentucky limited liability company (“Oxford Kentucky”), and Xxxxx Coal Company, LLC, an Ohio
limited liability company (“Xxxxx”), are referred to collectively herein as the “Oxford Entities.”
The Operating Company, Xxxxxxxx Resources, Oxford Kentucky and Xxxxx are referred to collectively
herein as the “Subsidiaries.”
1. Representations, Warranties and Agreements of the Partnership Parties. The Partnership
Parties represent, warrant and agree that:
(a) Registration; Definitions; No Stop Order. A registration statement (Registration
No. 333-165662) on Form S-1 relating to the Units has (i) been prepared by the Partnership
in conformity with the requirements of the Securities Act of 1933, as amended (the
“Securities Act”), and the rules and regulations (the “Rules and Regulations”) of the
Securities and Exchange Commission (the “Commission”) thereunder; (ii) been filed with the
Commission under the Securities Act; and (iii) become effective under the Securities Act.
Copies of such registration statement and any amendment thereto have been delivered by the
Partnership to you as the representatives (the “Representatives”) of the Underwriters. As
used in this Agreement:
(i) “Applicable Time” means [___] [a.m.][p.m.] (New York City time) on
[___] [___], 2010;
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(ii) “Effective Date” means the date and time as of which such registration
statement, or the most recent post-effective amendment thereto, was declared
effective by the Commission;
(iii) “Issuer Free Writing Prospectus” means each “free writing prospectus” (as
defined in Rule 405 of the Rules and Regulations) prepared by or on behalf of the
Partnership or used or referred to by the Partnership in connection with the
offering of the Units;
(iv) “Preliminary Prospectus” means any preliminary prospectus relating to the
Units included in such registration statement or filed with the Commission pursuant
to Rule 424(b) of the Rules and Regulations;
(v) “Pricing Disclosure Package” means, as of the Applicable Time, the most
recent Preliminary Prospectus, together with the information included in
Schedule 3 hereto, each Issuer Free Writing Prospectus filed with the
Commission or used by the Partnership on or before the Applicable Time, other than a
road show that is an Issuer Free Writing Prospectus but is not required to be filed
under Rule 433 of the Rules and Regulations;
(vi) “Prospectus” means the final prospectus relating to the Units, as filed
with the Commission pursuant to Rule 424(b) of the Rules and Regulations; and
(vii) “Registration Statement” means the registration statement on Form S-1
(Registration No. 333-165662) relating to the Units, as amended as of the Effective
Date, including any Preliminary Prospectus, the Prospectus and all exhibits to such
registration statement.
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) of the Rules and Regulations prior to or on the date hereof. The Commission has
not issued any order preventing or suspending the use of any Preliminary Prospectus or the
Prospectus or suspending the effectiveness of the Registration Statement, and no proceeding
for such purpose has been instituted or, to the knowledge of any of the Partnership Parties,
threatened by the Commission.
(b) Partnership Not an “Ineligible Issuer.” The Partnership was not at the time of
initial filing of the Registration Statement and at the earliest time thereafter that the
Partnership or another offering participant made a bona fide offer (within the meaning of
Rule 164(h)(2) of the Rules and Regulations) of the Units, is not on the date hereof and
will not be on the applicable Delivery Date (as defined in Section 4) an “ineligible issuer”
(as defined in Rule 405 of the Rules and Regulations).
(c) Registration Statement and Prospectus Conform to the Requirements of the Securities
Act. The Registration Statement conformed and will conform in all material respects on the
Effective Date and on the applicable Delivery Date, and any amendment to the Registration
Statement filed after the date hereof will conform in all
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material respects when filed, to the applicable requirements of the Securities Act and
the Rules and Regulations. The Pricing Disclosure Package conformed in all material
respects on the Effective Date, and the Prospectus will conform in all material respects
when filed with the Commission pursuant to Rule 424(b) and on the applicable Delivery Date,
to the requirements of the Securities Act and the Rules and Regulations.
(d) No Material Misstatements or Omissions in the Registration Statement. The
Registration Statement did not, as of the Effective Date, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; provided that no representation or warranty is
made as to information contained in or omitted from the Registration Statement in reliance
upon and in conformity with written information furnished to the Partnership through the
Representatives by or on behalf of any Underwriter specifically for inclusion therein, which
information is specified in Section 8(e).
(e) No Material Misstatements or Omissions in Prospectus. The Prospectus will not, as
of its date and on the applicable Delivery Date, contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided that no
representation or warranty is made as to information contained in or omitted from the
Prospectus in reliance upon and in conformity with written information furnished to the
Partnership through the Representatives by or on behalf of any Underwriter specifically for
inclusion therein, which information is specified in Section 8(e).
(f) No Material Misstatements or Omissions in Pricing Disclosure Package. The Pricing
Disclosure Package did not, as of the Applicable Time, contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that no representation or warranty is made as to information contained in or
omitted from the Pricing Disclosure Package in reliance upon and in conformity with written
information furnished to the Partnership through the Representatives by or on behalf of any
Underwriter specifically for inclusion therein, which information is specified in Section
8(e).
(g) No Material Misstatements or Omissions in Issuer Free Writing Prospectuses. Each
Issuer Free Writing Prospectus (including, without limitation, any road show that is a free
writing prospectus under Rule 433 of the Rules and Regulations), when considered together
with the Pricing Disclosure Package as of the Applicable Time, did not contain an untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as to information contained
in or omitted from each Issuer Free Writing Prospectus in reliance upon and in conformity
with written information furnished to the Partnership through the Representatives by or on
behalf of any Underwriter specifically for inclusion therein, which information is specified
in Section 8(e).
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(h) Issuer Free Writing Prospectuses Conform to the Requirements of the Securities Act.
Each Issuer Free Writing Prospectus conformed or will conform in all material respects to
the requirements of the Securities Act and the Rules and Regulations on the date of first
use, and the Partnership has complied with any filing requirements applicable to such Issuer
Free Writing Prospectus pursuant to the Rules and Regulations. The Partnership has not made
any offer relating to the Units that would constitute an Issuer Free Writing Prospectus
without the prior written consent of the Representatives. The Partnership has retained in
accordance with the Rules and Regulations all Issuer Free Writing Prospectuses that were not
required to be filed pursuant to the Rules and Regulations. The Partnership has taken all
actions necessary so that any road show (as defined in Rule 433 of the Rules and
Regulations) in connection with the offering of the Units will not be required to be filed
pursuant to the Rules and Regulations.
(i) Formation, Qualification and Authority. Each of the Oxford Entities has been duly
formed and is validly existing and in good standing as a limited partnership or a limited
liability company, as the case may be, under the laws of its respective jurisdiction of
formation, with all partnership or limited liability company, as the case may be, power and
authority necessary to own or hold its properties and conduct the businesses in which it is
engaged and, in the case of the General Partner, to act as the general partner of the
Partnership, in each case in all material respects. Each of the Oxford Entities is duly
registered or qualified to do business in and is in good standing as a foreign limited
partnership or limited liability company, as applicable, in each jurisdiction in which its
ownership or lease of property or the conduct of its businesses makes such qualification or
registration necessary, except where the failure to be so qualified or registered or in good
standing would not reasonably be expected to have a material adverse effect on the condition
(financial or other), results of operations, net worth, properties or business of the
Partnership and its Subsidiaries, taken as a whole (a “Material Adverse Effect”).
(j) Ownership of the General Partner. Except as otherwise provided in the GP LLC
Agreement (as defined below), C&T Coal and AIM Oxford own 33.7% and 66.3%, respectively, of
the issued and outstanding membership interests in the General Partner; such membership
interests have been duly authorized and validly issued in accordance with the Second Amended
and Restated Limited Liability Company Agreement of the General Partner, as amended (or, if
applicable, any predecessor agreement relating thereto) (the “GP LLC Agreement”), and are
fully paid (to the extent required under the GP LLC Agreement) and non-assessable (except as
such nonassessability may be affected by Sections 18-303, 18-607 and 18-804 of the Delaware
Limited Liability Company Act (the “Delaware LLC Act”)); C&T Coal and AIM Oxford own such
membership interests free and clear of all liens, encumbrances, security interests, charges
or claims (“Liens”), except as disclosed in the Prospectus.
(k) Ownership of the General Partner Interest in the Partnership.
The General Partner is, and at the applicable Delivery Date, after giving effect to the
Transactions, will be, the sole general partner of the Partnership with a 2.0% general
partner interest in the Partnership; such general partner interest will be duly authorized
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and validly issued in accordance with the Partnership Agreement; and the General
Partner will own such general partner interest free and clear of all Liens.
(l) Ownership of Sponsor Units. Assuming no purchase by the Underwriters of Option
Units, at the Initial Delivery Date, C&T Coal will own 532,476 Common Units and 3,4672,220
Subordinated Units and AIM Oxford will own 1,046,327 Common Units and 6,813,160 Subordinated
Units (collectively, the “Sponsor Units”); the Sponsor Units and the limited partner
interests represented thereby will have been duly authorized and validly issued in
accordance with the Partnership Agreement and will be 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 C&T Coal and AIM Oxford will own their
respective Sponsor Units free and clear of all Liens.
(m) Valid Issuance of Units. At the Initial Delivery Date or the Option Unit Delivery
Date (as defined in Section 4 hereof), 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 this Agreement, will be
validly issued, fully paid (to the extent required under the Partnership Agreement) and
nonassessable (except as such nonassessability may be affected by Sections 17-303, 17-607 or
17-804 of the Delaware LP Act).
(n) Ownership of Incentive Distribution Rights in the Partnership. The General Partner
owns all of the incentive distribution rights in the Partnership (the “Incentive
Distribution Rights”) and such Incentive Distribution Rights have been duly authorized and
validly issued in accordance with the Partnership Agreement, and are fully paid (to the
extent required under the Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804
of the Delaware LP Act); and the General Partner owns the Incentive Distribution Rights free
and clear of all Liens.
(o) Capitalization of the Partnership. Except as otherwise disclosed in the
Prospectus, other than the Common Units held by the LTIP Participants, the Sponsor Units and
the Incentive Distribution Rights, the Units will be the only limited partner interests of
the Partnership issued and outstanding at each Delivery Date.
(p) Ownership of the Operating Company. At each Delivery Date, the Partnership will
own 100% of the issued and outstanding membership interests in the Operating Company; such
membership interests have been duly authorized and validly issued in accordance with the
Amended and Restated Operating Agreement of the Operating Company, as amended (the
“Operating Company Operating Agreement”), and are fully paid (to the extent required under
the Operating Company Operating Agreement) and non-assessable (except as such
nonassessability may be affected by matters described in [___]); and the Partnership
will own such membership interests free and clear of all Liens other than Liens arising
under the Credit Agreement.
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(q) Ownership of Xxxxxxxx Resources. At each Delivery Date, the Operating Company will
own 51% of the issued and outstanding membership interests in Xxxxxxxx Resources; such
membership interests have been duly authorized in accordance with the Amended and Restated
Operating Agreement of Xxxxxxxx Resources, as amended (the “Xxxxxxxx Operating Agreement”),
and are fully paid (to the extent required under the Xxxxxxxx Operating Agreement) and
non-assessable (except as such nonassessability may be affected by matters described in
[___]); and the Operating Company will own such membership interests free and clear
of all Liens.
(r) Ownership of Oxford Kentucky. At each Delivery Date, the Operating Company will
own 100% of the issued and outstanding membership interests in Oxford Kentucky; such
membership interests have been duly authorized in accordance with the Amended and Restated
Operating Agreement of Oxford Kentucky (the “Oxford Kentucky Operating Agreement”) and are
fully paid (to the extent required under the Oxford Kentucky Operating Agreement) and
non-assessable (except as such nonassessability may be affected by matters described in
[___]); and the Operating Company will own such membership interests free and clear
of all Liens other than Liens arising under the Credit Agreement.
(s) Ownership of Xxxxx. At each Delivery Date, the Operating Company will own 100% of
the issued and outstanding membership interests in Xxxxx; such membership interests have
been duly authorized in accordance with the Operating Agreement of Xxxxx (the “Xxxxx
Operating Agreement”) and are fully paid (to the extent required under the Xxxxx Operating
Agreement) and non-assessable (except as such nonassessability may be affected by matters
described in [___]); and the Operating Company will own such membership interests
free and clear of all Liens other than Liens arising under the Credit Agreement.
(t) No Other Subsidiaries. Other than with respect to the other Oxford Entities, the
General Partner does not own, and at 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. Other than with respect to
the Subsidiaries, the Partnership does not own, and at 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. Other
than the Operating Company’s ownership of (i) a 51% membership interest in Xxxxxxxx
Resources, (ii) a 100% membership interest in Oxford Kentucky, and (iii) a 100% membership
interest in Xxxxx, none of the Subsidiaries owns, and at 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. Other
than the Subsidiaries, the Partnership does not have, and will not have at each Delivery
Date, any subsidiaries which, individually or considered as a whole, would be deemed to be a
“significant subsidiary” of the Partnership (as such term is defined in Section 1-02(w) of
Regulation S-X of the Securities Act).
(u) No Preemptive Rights, Registration Rights or Options. Except as identified in the
Pricing Disclosure Package and the Prospectus or in the Partnership
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Agreement, the GP LLC Agreement, the Investors’ Rights Agreement dated August 24, 2007
by and among Oxford Resource Partners, LP, Oxford Resources GP, LLC, AIM Oxford Holdings,
LLC, C&T Coal, Inc., Xxxxxxx X. Xxxxxxxx and Xxxxxx X. Xxxxxxxx (the “Investors’ Rights
Agreement”), the Xxxxxxxx Operating Agreement, unitholder agreements with the LTIP
Participants or the Employment Agreement with Xxxxxxx X. Xxxxxx, there are no (i) preemptive
rights or other rights to subscribe for or to purchase, nor any restriction upon the voting
or transfer of, any equity interests in any of the Oxford Entities or (ii) outstanding
options or warrants to purchase any securities of any of the Oxford Entities. Except for
such rights that have been waived or complied with, none of (i) the filing of the
Registration Statement, (ii) the consummation of the transactions (including the
Transactions) contemplated by this Agreement or (iii) 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 Oxford Entities.
(v) Authority and Authorization. The Partnership has all requisite limited partnership
power and authority to issue, sell and deliver the Units in accordance with and upon the
terms and conditions set forth in this Agreement and the Partnership Agreement. Each of the
Partnership Parties has all requisite limited partnership or limited liability company power
and authority to execute and deliver this Agreement and to perform its respective
obligations hereunder. At each Delivery Date, all limited partnership and limited liability
company action, as the case may be, required to be taken by any of the Partnership Parties
or any of their respective unitholders, partners or members for the authorization, issuance,
sale and delivery of the Units and the consummation of the transactions (including the
Transactions) contemplated by this Agreement, shall have been validly taken.
(w) Authorization, Execution and Delivery of this Agreement. This Agreement has been
duly authorized and validly executed and delivered by or on behalf of the Partnership
Parties.
(x) Authorization, Execution, Delivery and Enforceability of Certain Agreements. On or
before the Initial Delivery Date:
(i) the GP LLC Agreement will have been duly authorized, executed and delivered
by each of C&T Coal and AIM Oxford and will be a valid and legally binding
agreement, enforceable by and against each of C&T Coal and AIM Oxford in accordance
with its terms;
(ii) the Partnership Agreement will have been duly authorized, executed and
delivered by the General Partner and will be a valid and legally binding agreement
of the partners in the Partnership, enforceable by and against the partners in the
Partnership in accordance with its terms;
(iii) the Operating Company Operating Agreement will have been duly authorized,
executed and delivered by the Partnership and will be a valid and
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legally binding agreement, enforceable by and against the Partnership in
accordance with its terms;
(iv) the Xxxxxxxx Operating Agreement will have been duly authorized, executed
and delivered by the Operating Company and the other member of Xxxxxxxx Resources
and will be a valid and legally binding agreement, enforceable by and against the
Operating Company and such other member in accordance with its terms;
(v) the Oxford Kentucky Operating Agreement will have been duly authorized,
executed and delivered by the Operating Company and will be a valid and legally
binding agreement, enforceable by and against the Operating Company in accordance
with its terms;
(vi) the Xxxxx Operating Agreement will have been duly authorized, executed and
delivered by the Operating Company and will be a valid and legally binding
agreement, enforceable by and against the Operating Company in accordance with its
terms;
(vii) the Credit Agreement will have been duly authorized, executed and
delivered by the Partnership Parties that are parties thereto and the other parties
thereto and will be a valid and legally binding agreement, enforceable by and
against the Partnership Parties that are parties thereto in accordance with its
terms;
(viii) each of the Lease Buyout Agreements will have been duly authorized by
the Partnership Parties that are parties thereto and will be a valid and legally
binding agreement, enforceable by and against the parties thereto in accordance with
its terms; and
(ix) the Administrative and Operational Services Agreement (the “Administrative
Services Agreement”), by and among the Partnership, the Operating Company and the
General Partner, will have been duly authorized, executed and delivered by the
parties thereto and will be a valid and legally binding agreement, enforceable by
and against such parties in accordance with its terms;
provided, however, that, with respect to each agreement described in this Section 1(x), the
enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent
transfer or conveyance, reorganization, moratorium and similar laws from time to time in
effect relating to or affecting creditors’ rights generally and by general principles of
equity (regardless of whether such principles are considered in a proceeding in equity or at
law); and provided, further, that the indemnity, contribution and exoneration provisions
contained in any such agreements may be limited by applicable laws relating to fiduciary
duties, public policy and an implied covenant of good faith and fair dealing.
(y) No Conflicts. None of (i) the offering, issuance and sale by the Partnership of
the Units and the application of the proceeds from the sale of the Units as
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described under “Use of Proceeds” in the Pricing Disclosure Package, (ii) the
execution, delivery and performance of this Agreement by the Partnership Parties, or (iii)
the consummation of the transactions (including the Transactions) contemplated hereby (A)
conflicts or will conflict with or constitutes or will constitute a violation of the
agreement of limited partnership, limited liability company agreement, certificate of
formation, articles of organization or conversion or other constituent document of any of
the Oxford Entities, (B) conflicts or will conflict with or constitutes or will constitute a
breach or violation of, or a default (or an event that, 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 Oxford Entities is a
party of by which any of them or any of their respective properties may be bound, (C)
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 Oxford
Entities or any of their properties in a proceeding to which any of them or their property
is a party or (D) results or will result in the creation or imposition of any Lien upon any
property or assets of any of the Oxford Entities, which conflicts, breaches, violations,
defaults or Liens, in the case of clauses (B), (C) or (D), would reasonably be expected to
have a Material Adverse Effect or materially impair the ability of any of the Oxford
Entities to consummate the transactions (including the Transactions) contemplated under this
Agreement.
(z) No Consents. No permit, consent, approval, authorization, order, registration,
filing or qualification of or with any court or governmental agency or body having
jurisdiction over any of the Oxford Entities or any of their properties or assets is
required in connection with (i) the offering, issuance or sale by the Partnership of the
Units, (ii) the application of the proceeds therefrom as described under “Use of Proceeds”
in the Pricing Disclosure Package, (iii) the execution and delivery of this Agreement by the
Partnership Parties or (iv) consummation of the transactions (including the Transactions)
contemplated hereby, except for (x) consents, approvals and similar authorizations as may be
required under the Securities Act, the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), the “Blue Sky” laws of any jurisdiction or the by-laws and rules of the
Financial Industry Regulating Authority, Inc. (“FINRA”) in connection with the purchase and
distribution of the Units by the Underwriters, (y) such consents that have been, or prior to
any such Delivery Date will be, obtained and (z) such consents that, if not obtained, would
not reasonably be expected to have a Material Adverse Effect or materially impair the
ability of any of the Oxford Entities to consummate the transactions (including the
Transactions) contemplated under this Agreement.
(aa) No Defaults. None of the Oxford Entities (i) is in violation of its certificate
of limited partnership, agreement of limited partnership, limited liability company
agreement or other organizational documents, (ii) is in violation of any law, statute,
ordinance, administrative or governmental rule or regulation applicable to it or of any
decree of any court or governmental agency or body having jurisdiction over it, or (iii) is
in breach, default (or an event that, 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 other evidence of indebtedness or in
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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
clause (ii) or (iii), would, if continued, reasonably be expected to have a Material Adverse
Effect or materially impair the ability of any of the Oxford Entities to consummate the
transactions (including the Transactions) contemplated under this Agreement.
(bb) Conformity of Units to Description in the most recent Preliminary Prospectus. The
Units, when issued and delivered in accordance with the terms of the Partnership Agreement
and this Agreement against payment therefor as provided therein and herein, will conform in
all material respects to the description thereof contained in the Registration Statement,
the Pricing Disclosure Package and the Prospectus.
(cc) No Integration. The Partnership has not sold or issued any securities that would
be integrated with the offering of the Units contemplated by this Agreement pursuant to the
Securities Act, the Rules and Regulations or the interpretations thereof by the Commission.
(dd) No Material Adverse Change. None of the Oxford Entities has sustained, since the
date of the latest audited financial statements included in the Pricing Disclosure Package,
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 or decree, and since such date there has not been any change in the
capitalization or increase in the long-term debt of the Partnership or any of its
Subsidiaries, or any adverse change in or affecting the condition (financial or other),
results of operations, net worth, properties, management business of the Partnership and its
Subsidiaries, taken as a whole, in each case except as described in the Pricing Disclosure
Package and the Prospectus or as would not reasonably be expected to have a Material Adverse
Effect.
(ee) Conduct of Business. Except as disclosed in the Pricing Disclosure Package and
the Prospectus, since the date as of which information is given in the Pricing Disclosure
Package, none of the Oxford Entities has (i) incurred any liability or obligation, direct or
contingent, that is material to the Partnership and its Subsidiaries, taken as a whole,
other than liabilities and obligations that were incurred in the ordinary course of
business, (ii) entered into any transaction not in the ordinary course of business that is
material to the Partnership and its Subsidiaries, taken as a whole, or (iii) issued or
granted any securities; and neither the Partnership nor any of its Subsidiaries has
declared, paid or made any dividend or distribution of any class of securities.
(ff) Financial Statements. The historical financial statements (including the related
notes and supporting schedules) included in the Pricing Disclosure Package (i) comply in all
material respects with the applicable requirements under the Securities Act and the Exchange
Act, (ii) present fairly the financial condition, results of operations and cash flows of
the entities purported to be shown thereby at the dates and for the periods indicated, and
(iii) have been prepared in accordance with accounting principles generally accepted in the
United States applied on a consistent basis throughout the periods
12
involved. The summary historical and pro forma financial and operating data included
in the Pricing Disclosure Package under the caption “Summary—Summary Historical and Pro
Forma Financial and Operating Data” and the selected historical and pro forma financial and
operating data included in the Pricing Disclosure Package under the caption “Selected
Historical and Pro Forma Consolidated Financial and Operating Data” are fairly presented and
prepared on a basis consistent with the audited and unaudited historical financial
statements and pro forma financial statements, as applicable, from which they have been
derived. The other financial information of the Partnership and its Subsidiaries, including
non-GAAP financial measures, contained in the Pricing Disclosure Package has been derived
from the accounting records of the Partnership and its Subsidiaries, and fairly presents the
information purported to be shown thereby.
(gg) Pro Forma Financial Statements. The pro forma financial statements included in
the Pricing Disclosure Package include assumptions that provide a reasonable basis for
presenting the significant effects directly attributable to the transactions and events
described therein, the related pro forma adjustments give appropriate effect to those
assumptions, and the pro forma adjustments reflect the proper application of those
adjustments to the historical financial statement amounts in the pro forma financial
statements included in the Pricing Disclosure Package. The pro forma financial statements
included in the Pricing Disclosure Package comply as to form in all material respects with
the applicable requirements of Regulation S-X under the Securities Act.
(hh) Independent Registered Public Accounting Firm. Xxxxx Xxxxxxxx LLP, who has
certified the consolidated financial statements of the Partnership and its Subsidiaries (and
of the Partnership’s predecessor and its subsidiaries) included in the Pricing Disclosure
Package, whose report appears in the Pricing Disclosure Package and who has delivered the
initial letter referred to in Section 7(g) hereof, are independent public accountants as
required by the Securities Act and the Rules and Regulations; and Ernst & Young LLP, who has
certified the combined financial statements for the carved-out surface mining operations of
Phoenix Coal Inc., an Ontario (Canada) corporation, included in the Pricing Disclosure
Package, whose report appears in the Pricing Disclosure Package and who has delivered the
initial letter referred to in Section 7(i) hereof, are independent
public accountants under Rule 101 of AICPA’s Code of
Professional Conduct, and its interpretations and rulings.
(ii) Reserve Engineer. Xxxx X. Xxxx Company (the “Engineers”), whose reserve
evaluations are referenced or appear, as the case may be, in the Pricing Disclosure Package,
were, as of March 3, 2010, and are, as of the date hereof, independent engineers with
respect to the Partnership; and the historical information underlying the estimates of the
reserves of the Partnership supplied by the Partnership to the Engineers for the purposes of
preparing the reserve report, dated as of March 3, 2010, referenced in the Pricing
Disclosure Package (the “Reserve Report”), was true and correct in all material respects on
the date of the Reserve Report and was prepared in all material respects in accordance with
customary industry practices.
(jj) Title to Properties. Each Oxford Entity has good and indefeasible fee title to
all real property and good title to all personal property described in the Pricing
13
Disclosure Package as being owned by them, in each case free and clear of all Liens,
except (i) as are contemplated by the Pricing Disclosure Package and the Prospectus or (ii)
as would not reasonably be expected to have a material adverse effect upon the ability of
the Oxford Entities considered as a whole to conduct their businesses as contemplated by the
Pricing Disclosure Package and the Prospectus; provided that, with respect to real property
and buildings held under lease by the Oxford Entities, 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 and its Subsidiaries,
taken as a whole, as described in the Pricing Disclosure Package and the Prospectus.
(kk) Rights-of-Way. At each Delivery Date, each of the Oxford Entities will have such
consents, easements, rights-of-way or licenses from any person (collectively,
“rights-of-way”) as are necessary to conduct its business in the manner described in the
Pricing Disclosure Package and the Prospectus, subject to such qualifications as may be set
forth in the Pricing Disclosure Package and the Prospectus and except for such rights-of-way
the failure of which to have obtained would not reasonably be expected to have a material
adverse effect upon the ability of the Partnership and its Subsidiaries, taken as a whole,
to conduct their businesses in all material respects as contemplated in the Pricing
Disclosure Package; at each Delivery Date, each Oxford Entity will have fulfilled and
performed all its material obligations with respect to such rights-of-way and no event has
occurred which allows, or after notice or lapse of time would allow, revocation or
termination thereof or would result in any impairment of the rights of the holder of any
such rights-of-way, except for such failures to perform, revocations, terminations and
impairments that would not reasonably be expected to have a material adverse effect upon the
ability of the Partnership and its Subsidiaries, taken as a whole, to conduct their
businesses in all material respects as contemplated in the Pricing Disclosure Package and
the Prospectus, subject in each case to such qualification as may be set forth in the
Pricing Disclosure Package and the Prospectus.
(ll) Insurance. The Oxford Entities maintain or are entitled to the benefits of
insurance covering their properties, operations, personnel and businesses against such
losses and risks as are reasonably adequate to protect them and their businesses in a manner
consistent with other businesses similarly situated. All such insurance is outstanding and
duly in force on the date hereof and will be outstanding and duly in force on each
applicable Delivery Date.
(mm) Investment Company. None of the Oxford Entities is now, or after the sale of the
Units to be sold by the Partnership hereunder and the application of the net proceeds
therefrom as described under “Use of Proceeds” in the Pricing Disclosure Package and the
Prospectus, none of them will be (i) an “investment company” within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company Act”), and the rules and
regulations of the Commission thereunder or (ii) a “business development company” (as
defined in Section 2(a)(48) of the Investment Company Act).
14
(nn) Litigation. Except as described in the Pricing Disclosure Package and the
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 any of the Partnership Parties, threatened, to which any of the Oxford Entities is or may
be a party or to which the business or property of any of the Oxford 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 Oxford
Entities is or may be subject, that, in the case of clauses (i) and (ii) above, would
reasonably be expected to have a Material Adverse Effect or prevent or result in the
suspension of the offering and issuance of the Units.
(oo) No Omitted Descriptions. There are no legal or governmental proceedings pending
or, to the knowledge of the Partnership Parties, threatened, against any of the Oxford
Entities, or to which any of the Oxford Entities is a party, or to which any of their
respective properties or assets is subject, that are required to be described in the
Registration Statement, the Pricing Disclosure Package or the Prospectus but 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 Pricing
Disclosure Package or the Prospectus or to be filed as an exhibit to the Registration
Statement that are not described or filed as required by the Securities Act, the Rules and
Regulations, the Exchange Act or the rules and regulations thereunder.
(pp) Certain Relationships. Except as described in the Pricing Disclosure Package and
the Prospectus, no relationship, direct or indirect, exists between or among the Partnership
and its Subsidiaries, on the one hand, and the directors, officers, partners, members,
customers or suppliers of any of the Oxford Entities, on the other hand, that is required to
be described in the Pricing Disclosure Package which is not so described.
(qq) No Labor Disputes. No labor dispute with the employees that are engaged in the
business of the Partnership or its Subsidiaries exists or, to the knowledge of the
Partnership Parties, is imminent or threatened, that would reasonably be expected to have a
Material Adverse Effect.
(rr) ERISA. (i) Each “employee benefit plan” (within the meaning of Section 3(3) of
the Employee Retirement Security Act of 1974, as amended (“ERISA”)), for which any of the
Oxford Entities would have any material liability, excluding any multiemployer plan (within
the meaning of Section 4001(a)(3) of ERISA) (each a “Plan”), has been maintained in material
compliance with its terms and with the requirements of all applicable statutes, rules and
regulations including ERISA and the Code; (ii) with respect to each Plan subject to Title IV
of ERISA (a) no “reportable event” (within the meaning of Section 4043(c) of ERISA) has
occurred or is reasonably expected to occur, (b) no “accumulated funding deficiency” (within
the meaning of Section 302 of ERISA or Section 412 of the Internal Revenue Code of 1986, as
amended (the “Code”)), whether or not waived, has occurred or is reasonably expected to
occur, (c) the fair market value of the assets under each Plan exceeds the present value of
all benefits accrued under such Plan (determined based on those assumptions used to fund
such Plan) and (d) none of the Oxford Entities has incurred, or reasonably expects to
15
incur, any liability under Title IV of ERISA (other than contributions to the Plan or
premiums to the Pension Benefit Guaranty Corporation in the ordinary course and without
default) in respect of a Plan (including a “multiemployer plan”, within the meaning of
Section 4001(a)(3) of ERISA); and (iii) each Plan that is intended to be qualified under
Section 401(a) of the Code has been determined by the Internal Revenue Service to be so
qualified and nothing has occurred, whether by action or by failure to act, which would
reasonably be expected to cause the loss of such qualification.
(ss) Tax Returns. Each of the Oxford Entities has filed (or has obtained extensions
with respect to) all material federal, state 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 shown to be due pursuant to such returns,
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)
which, if not paid, would not reasonably be expected to result in a Material Adverse Effect.
(tt) Books and Records. Each of the Oxford Entities (i) makes and keeps accurate books
and records and (ii) maintains effective internal control over financial reporting as
defined in Rule 13a-15 under the Exchange Act and a system of internal accounting controls
sufficient to provide reasonable assurance that (A) transactions are executed in accordance
with management’s general or specific authorization, (B) transactions are recorded as
necessary to permit preparation of financial statements in conformity with accounting
principles generally accepted in the United States and to maintain accountability for its
assets, (C) access to the assets of the Partnership and its Subsidiaries 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.
(uu) Disclosure Controls and Procedures. (i) The Oxford Entities maintain disclosure
controls and procedures (to the extent required by and as such term is defined in Rule
13a-15 under the Exchange Act), (ii) such disclosure controls and procedures are designed to
ensure that the information required to be disclosed by the Partnership in the reports it
files or will file or submit under the Exchange Act, as applicable, is accumulated and
communicated to management of the Oxford Entities, including their respective principal
executive officers and principal financial officers, as appropriate, to allow timely
decisions regarding required disclosure to be made and (iii) such disclosure controls and
procedures are effective in all material respects to perform the functions for which they
were established to the extent required by Rules 13a-15 and 15d-15 of the Exchange Act.
(vv) No Changes in Internal Controls. Since the date of the most recent balance sheet
of the Partnership reviewed or audited by Xxxxx Xxxxxxxx LLP and the audit committee of the
Board of Directors of the General Partner, (i) none of the Oxford Entities has been advised
by Xxxxx Xxxxxxxx LLP of (A) any significant deficiencies in the design or operation of
internal controls over financial reporting that are reasonably
16
likely to adversely affect the ability of the Oxford Entities to record, process,
summarize and report financial data, or any material weaknesses in internal controls over
financial reporting affecting any of the Oxford Entities, or (B) any fraud, whether or not
material, that involves management or other employees who have a significant role in the
internal controls over financial reporting of the Oxford Entities, and (ii) since that date,
there have been no significant changes in the internal controls of any of the Oxford
Entities that materially affected or are reasonably likely to materially affect any internal
controls over financial reporting relating to any of the Oxford Entities.
(ww) Xxxxxxxx-Xxxxx Act of 2002. There is and has been no failure on the part of the
Partnership and, to the knowledge of the Partnership Parties, any of the General Partner’s
directors or officers, in their capacities as such, to comply with the provisions of the
Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated in connection
therewith.
(xx) Permits. Each of the Oxford Entities has such permits, licenses, patents,
franchises, certificates of need and other approvals or authorizations of governmental or
regulatory authorities (“Permits”) as are necessary under applicable law to own their
properties and conduct their businesses in the manner described in the Pricing Disclosure
Package and the Prospectus, except for any of the foregoing that would not reasonably be
expected to have a Material Adverse Effect; each of the Oxford Entities has fulfilled and
performed all of its obligations with respect to the Permits, and no event has occurred that
allows, or after notice or lapse of time would allow, revocation or termination thereof or
results in any other impairment of the rights of the holder or any such Permits, except as
described in the Pricing Disclosure Package and the Prospectus or for any of the foregoing
that would not reasonably be expected to have a Material Adverse Effect.
(yy) Environmental Laws. Except as described in the Pricing Disclosure Package and the
Prospectus, each of the Oxford Entities (i) is, and at all times prior hereto has been, in
material compliance with all laws, regulations, ordinances, rules, orders, judgments,
decrees, permits or other legal requirements of any governmental authority, including,
without limitation, any international, national, state, provincial, regional, or local
authority, relating to the protection of human health or safety, the environment, or natural
resources, or imposing liability or standards of conduct concerning any Hazardous Materials
(as defined below) (“Environmental Laws”) applicable to such entity, which compliance
includes, without limitation, obtaining, maintaining and complying with all permits and
authorizations and approvals required by Environmental Laws to conduct their respective
businesses, (ii) has received all material permits required of them under applicable
Environmental Laws to conduct their respective businesses, (iii) is in material compliance
with all terms and conditions of any such permits and (iv) has not received notice of any
actual or alleged violation of Environmental Law, except where such noncompliance with
Environmental Laws, failure to receive required permits or failure to comply with the terms
and conditions of such permits would not reasonably be expected to have a Material Adverse
Effect. Except as described in the Pricing Disclosure Package and the Prospectus, (x) there
are no proceedings that are pending, or known to be contemplated, against any of the Oxford
Entities under Environmental Laws in which a governmental authority is also a party,
17
other than such proceedings regarding which it is reasonably believed no monetary
sanctions of $100,000 or more will be imposed, and (y) none of the Oxford Entities
anticipates material capital expenditures relating to Environmental Laws other than those
incurred in the ordinary course of their businesses for the purchase of equipment used in
their mining and reclamation activities. 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 regulated under or within the meaning of any
other Environmental Law.
(zz) Discrimination. None of the Oxford Entities is in violation of or has received
notice of any violation with respect to any federal or state law relating to discrimination
in the hiring, promotion or pay of employees, nor any applicable federal or state wage and
hour laws, the violation of any of which would reasonably be expected to have a Material
Adverse Affect.
(aaa) FCPA. None of the Oxford Entities, nor, to the knowledge of the Partnership or
any director, officer, agent or employee of any of the Oxford Entities, has violated or is
in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977 (the
“FCPA”).
(bbb) Compliance with Money Laundering Laws. The operations of the Oxford 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 jurisdictions, the rules and
regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively, the “Money Laundering
Laws”), and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Oxford Entities with respect to the Money
Laundering Laws is pending or, to the knowledge of the Partnership Parties, threatened,
except, in each case, as would not reasonably be expected to have a Material Adverse Effect.
(ccc) OFAC. None of the Oxford Entities, nor, to the knowledge of the Partnership
Parties, any director, officer, agent or employee of any of the Oxford 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 Oxford Entities will not directly or
indirectly use the proceeds of the offering, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.
(ddd) Directed Unit Sales. None of the Directed Units distributed in connection with
the Directed Unit Program (each as defined in Section 3 hereof) will be offered or sold
outside of the United States. The Partnership has not offered, or caused Barclays
18
Capital Inc. to offer, Units to any person pursuant to the Directed Unit Program with
the specific intent to unlawfully influence (i) a customer or supplier of any of the Oxford
Entities to alter the customer’s or supplier’s level or type of business with any such
entity or (ii) a trade journalist or publication to write or publish favorable information
about any of the Oxford Entities or their respective businesses or products
(eee) No Distribution of Other Offering Materials. None of the Oxford Entities has
distributed or, prior to the later to occur of any Delivery Date and completion of the
distribution of the Units, will distribute any offering material in connection with the
offering and sale of the Units other than any Preliminary Prospectus, the Prospectus, any
Issuer Free Writing Prospectus to which the Representatives have consented in accordance
with Section 1(h) or 5(a)(v), any other materials, if any, permitted by the Securities Act,
including Rule 134, and, in connection with the Directed Unit Program described in Section
3, the enrollment materials prepared by Barclays Capital Inc. on behalf of the Partnership.
(fff) Market Stabilization. None of the Oxford Entities or any of their affiliates has
taken, directly or indirectly, any action designed to or which has constituted or which
would reasonably be expected to cause or result, under the Exchange Act or otherwise, in
stabilization or manipulation of the price of any securities of the Partnership or to
facilitate the sale or resale of the Units.
(ggg) Listing on the New York Stock Exchange. The Units have been approved for listing
on the New York Stock Exchange, subject to official notice of issuance.
Any certificate signed by any officer of the Partnership Parties and delivered to the
Representatives or counsel for the Underwriters in connection with the offering of the Units shall
be deemed a representation and warranty by such entity, as to matters covered thereby, to each
Underwriter.
2. Purchase of the Units by the Underwriters. On the basis of the representations and
warranties contained in, and subject to the terms and conditions of, this Agreement, the
Partnership agrees to sell 8,750,000 Firm Units to the several Underwriters, and each of the
Underwriters, severally and not jointly, agrees to purchase the number of Firm Units set forth
opposite that Underwriter’s name in Schedule 1 hereto. The respective purchase obligations of the
Underwriters with respect to the Firm Units shall be rounded among the Underwriters to avoid
fractional Units, as the Representatives may determine.
In addition, the Partnership grants to the Underwriters an option to purchase up to 1,312,500
Option Units. Such option (the “Option”) is exercisable in the event that the Underwriters sell
more Common Units than the number of Firm Units in the offering and as set forth in Section 4
hereof. Each Underwriter agrees, severally and not jointly, to purchase the number of Option Units
(subject to such adjustments to eliminate fractional Units as the Representatives may determine)
that bears the same proportion to the total number of Option Units to be sold on such Delivery Date
as the number of Firm Units set forth in Schedule 1 hereto opposite the name of such
Underwriter bears to the total number of Firm Units.
19
The price of both the Firm Units and any Option Units purchased by the Underwriters shall be
$[___] per Common Unit.
The Partnership shall not be obligated to deliver any of the Firm Units or Option Units to be
delivered on the applicable Delivery Date, except upon payment for all such Units to be purchased
on such Delivery Date as provided herein.
3. Offering of Units by the Underwriters. Upon authorization by the Representatives of the
release of the Firm Units, the several Underwriters propose to offer the Firm Units for sale upon
the terms and conditions to be set forth in the Prospectus.
It is understood that 1,000,000 Firm Units (the “Directed Units”) will initially be reserved
by the several Underwriters for offer and sale upon the terms and conditions to be set forth in the
Pricing Disclosure Package and in accordance with the rules and regulations of FINRA to officers,
directors, employees of the General Partner and certain of their respective friends and family
(“Directed Unit Participants”) who have heretofore delivered to
Citigroup Global Markets Inc. offers to purchase the Directed Units
in form satisfactory to
Citigroup Global Markets Inc. (such program, the “Directed Unit
Program”) and that any allocation of the Directed Units among such persons will be made in
accordance with timely directions received by Citigroup Global
Markets Inc. from the Partnership; provided that under no circumstances will
Citigroup Global
Markets Inc. or any Underwriter be liable to the Partnership or to any such
person for any action taken or omitted in good faith in connection with such Directed Unit Program.
It is further understood that any Directed Units not affirmatively reconfirmed for purchase by any
participant in the Directed Unit Program by [___]:00 A.M., New York City time, on the first business
day following the date hereof or otherwise are not purchased by such persons will be offered by the
Underwriters to the public upon the terms and conditions set forth in the Pricing Disclosure
Package.
The Partnership agrees to pay all reasonable and customary fees and disbursements incurred by
the Underwriters in connection with the Directed Unit Program and any stamp duties or other taxes
incurred by the Underwriters in connection with the Directed Unit Program.
4. Delivery of and Payment for the Units. Delivery of and payment for the Firm Units shall be
made on [___] [___], 2010, at [___]:00 A.M., New York City time, or on such other date or at such
other time as shall be determined by agreement between the Representatives and the Partnership.
This date and time are sometimes referred to as the “Initial Delivery Date.” Delivery of the Firm
Units shall be made to the Representatives for the account of each Underwriter against payment by
the several Underwriters through the Representatives and of the respective aggregate purchase
prices of the Firm Units being sold by the Partnership to or upon the order of the Partnership of
the purchase price by wire transfer in immediately available funds to the accounts specified by the
Partnership. The Partnership shall deliver the Firm Units through the facilities of The Depository
Trust Company unless the Representatives shall otherwise instruct. Time shall be of the essence,
and delivery on the date and at the time and place specified pursuant to this Agreement is a
further condition of the obligation of each Underwriter hereunder.
20
The Option granted in Section 2 will expire 30 days after the date of this Agreement and may
be exercised in whole or from time to time in part by written notice being given to the Partnership
by the Representatives; provided that, if such date falls on a day that is not a business day, the
Option granted in Section 2 will expire on the next succeeding business day. Such notice shall set
forth the aggregate number of Option Units as to which the option is being exercised, the names in
which the Option Units are to be registered, the denominations in which the Option Units are to be
issued and the date and time, as determined by the Representatives, when the Option Units are to be
delivered; provided, however, that this date and time shall not be earlier than the Initial
Delivery Date nor earlier than the second business day after the date on which the Option shall
have been exercised nor later than the fifth business day after the date on which the Option shall
have been exercised. Each date and time the Option Units are delivered is sometimes referred to as
an “Option Unit Delivery Date,” and the Initial Delivery Date and any Option Unit Delivery Date are
sometimes each referred to as a “Delivery Date.”
Delivery of the Option Units by the Partnership and payment for the Option Units by the
several Underwriters through the Representatives shall be made on the date specified in the
corresponding notice described in the preceding paragraph as the Option Unit Delivery Date, at
[___]:00 A.M., New York City time, or on such other date or at such other time as shall be
determined by agreement between the Representatives and the Partnership. On the Option Unit
Delivery Date, the Partnership shall deliver or cause to be delivered the Option Units to the
Representatives for the account of each Underwriter against payment by the several Underwriters
through the Representatives and of the respective aggregate purchase prices of the Option Units
being sold by the Partnership to or upon the order of the Partnership of the purchase price by wire
transfer in immediately available funds to the accounts specified by the Partnership. The
Partnership shall deliver the Option Units through the facilities of Depository Trust Company
unless the Representatives shall otherwise instruct. Time shall be of the essence, and delivery on
the date and at the time and place specified pursuant to this Agreement is a further condition of
the obligation of each Underwriter hereunder.
5. Further Agreements of the Partnership Parties and the Underwriters. (a) Each of the
Partnership Parties, jointly and severally, covenants and agrees to cause the Partnership:
(i) Preparation of Prospectus and Registration Statement. To prepare the
Prospectus in a form approved by the Representatives and to file such Prospectus
pursuant to Rule 424(b) of the Rules and Regulations not later than the Commission’s
close of business on the second business day following the execution and delivery of
this Agreement; to make no further amendment or any supplement to the Registration
Statement or the Prospectus prior to the last Delivery Date except as provided
herein; to advise the Representatives, promptly after it receives notice thereof, of
the time when any amendment or supplement to the Registration Statement or the
Prospectus has been filed and to furnish the Representatives with copies thereof; to
advise the Representatives, promptly after it receives notice thereof, of the
issuance by the Commission of any stop order or of any order preventing or
suspending the use of the Prospectus or any Issuer Free Writing Prospectus, of the
suspension of the qualification of the Units for offering
21
or sale in any jurisdiction, of the initiation or threatening of any proceeding
or examination for any such purpose or of any request by the Commission for the
amending or supplementing of the Registration Statement, the Prospectus or any
Issuer Free Writing Prospectus or for additional information; and, in the event of
the issuance of any stop order or of any order preventing or suspending the use of
the Prospectus or any Issuer Free Writing Prospectus or suspending any such
qualification, to use promptly its best efforts to obtain its withdrawal;
(ii) Signed Copies of Registration Statement. To furnish promptly to each of
the Representatives and to counsel for the Underwriters a signed copy of the
Registration Statement as originally filed with the Commission, and each amendment
thereto filed with the Commission, including all consents and exhibits filed
therewith;
(iii) Copies of Documents to Underwriters. To deliver promptly to the
Representatives such number of the following documents as the Representatives shall
reasonably request: (A) conformed copies of the Registration Statement as
originally filed with the Commission and each amendment thereto (in each case
excluding exhibits other than this Agreement), (B) each Preliminary Prospectus, the
Prospectus and any amended or supplemented Prospectus and (C) each Issuer Free
Writing Prospectus; and, if the delivery of a prospectus is required at any time
after the date hereof in connection with the offering or sale of the Units or any
other securities relating thereto and if at such time any events shall have occurred
as a result of which the Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were
made when such Prospectus is delivered, not misleading, or, if for any other reason
it shall be necessary to amend or supplement the Prospectus in order to comply with
the Securities Act, to notify the Representatives and, upon their request, to file
such document and to prepare and furnish without charge to each Underwriter and to
any dealer in securities as many copies as the Representatives may from time to time
reasonably request of an amended or supplemented Prospectus that will correct such
statement or omission or effect such compliance;
(iv) Filing of Amendment or Supplement. To file promptly with the Commission
any amendment or supplement to the Registration Statement or the Prospectus that
may, in the judgment of the Partnership or the Representatives, be required by the
Securities Act or requested by the Commission; prior to filing with the Commission
any amendment or supplement to the Registration Statement or the Prospectus, to
furnish a copy thereof to the Representatives and counsel for the Underwriters and
obtain the consent of the Representatives to the filing, which consent shall not be
unreasonably withheld;
(v) Issuer Free Writing Prospectus. Not to make any offer relating to the
Units that would constitute an Issuer Free Writing Prospectus without the prior
written consent of the Representatives; to comply with all applicable
22
requirements of Rule 433 of the Rules and Regulations with respect to any
Issuer Free Writing Prospectus (including retaining in accordance with such rule any
Issuer Free Writing Prospectuses not required to be filed pursuant thereto); and if
at any time after the date hereof any events shall have occurred as a result of
which any Issuer Free Writing Prospectus, as then amended or supplemented, would
conflict with the information in the Registration Statement, the Pricing Disclosure
Package or the Prospectus or would include an untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or, if
for any other reason it shall be necessary to amend or supplement any Issuer Free
Writing Prospectus, to notify the Representatives and, upon their request, to file
such document and to prepare and furnish without charge to each Underwriter as many
copies as the Representatives may from time to time reasonably request of an amended
or supplemented Issuer Free Writing Prospectus that will correct such conflict,
statement or omission or effect such compliance;
(vi) Reports to Security Holders. As soon as practicable after the Effective
Date (it being understood that the Partnership shall have until at least 410 days
or, if the fourth quarter following the fiscal quarter that includes the Effective
Date is the last fiscal quarter of the Partnership’s fiscal year, 455 days after the
end of the Partnership’s current fiscal quarter), to make generally available to the
Partnership’s security holders and to deliver to the Representatives an earnings
statement of the Partnership and its Subsidiaries (which need not be audited)
complying with Section 11(a) of the Securities Act and the Rules and Regulations
(including, at the option of the Partnership, Rule 158);
(vii) Qualifications. Promptly from time to time to take such action as the
Representatives may reasonably request to qualify the Units for offering and sale
under the securities laws of such jurisdictions as the Representatives may request
and to comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the
distribution of the Units; provided that in connection therewith the Partnership
shall not be required to (i) qualify as a foreign limited partnership in any
jurisdiction in which it would not otherwise be required to so qualify, (ii) file a
general consent to service of process in any such jurisdiction or (iii) subject
itself to taxation in any jurisdiction in which it would not otherwise be subject;
(viii) Lock-Up Period; Lock-Up Letters. For a period commencing on the date
hereof and ending on the 180th day after the date of the Prospectus (the “Lock-Up
Period”), 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 (other than (A) the Units and Common Units or securities convertible
into or exchangeable for Common Units issued pursuant to employee
23
benefit plans, qualified option plans or other employee or director
compensation plans or arrangements existing on the date hereof or (B) purchases of
Common Units in open market transactions following the completion of the Offering
and transfers of such Common Units to employees, officers or director by employee
benefit plans, qualified option plans or other employee or director compensation
plans or arrangements existing on the date hereof), or sell or grant options, rights
or warrants with respect to any Common Units or securities convertible into or
exchangeable for Common Units (other than the grant of options pursuant to plans
existing on the date hereof), (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, (3) 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 or
any other securities of the Partnership (other than any registration statement on
Form S-8) or (4) publicly disclose the intention to do any of the foregoing, in each
case without the prior written consent of the Representatives, on behalf of the
Underwriters, and to cause the executive officers and directors of the General
Partner and the unitholders of the Partnership set forth on Schedule 2
hereto to furnish to the Representatives, prior to the Initial Delivery Date, an
executed letter or letters, substantially in the form of Exhibit A hereto
(the “Lock-Up Agreements”); notwithstanding the foregoing, if (1) during the last 17
days of the Lock-Up Period, the Partnership issues an earnings release or material
news or a material event relating to the Partnership occurs, or (2) prior to the
expiration of the Lock-Up Period, the Partnership announces that it will release
earnings results during the 16-day period beginning on the last day of the Lock-Up
Period, then the restrictions imposed in this paragraph shall continue to apply
until the expiration of the 18-day period beginning on the issuance of the earnings
release or the announcement of the material news or the occurrence of the material
event, unless the Representatives, on behalf of the Underwriters, waive such
extension in writing;
(ix) Application of Proceeds. To apply the net proceeds from the sale of the
Units being sold by the Partnership as set forth in the Prospectus; and
(x) Directed Unit Program. In connection with the Directed Unit Program, to
ensure that the Directed Units held by Directed Unit Participants who purchase in
excess of [___] Directed Units under the Directed Unit Program will be restricted
from sale, transfer, assignment, pledge or hypothecation to the same extent as sales
and dispositions of Common Units by the Partnership are restricted pursuant to
Section 5(a)(viii); provided, however, that the lock-up period for
such Directed Unit Participants (other than any Person identified on Schedule
2 hereto) will be [___] days and the Representatives will notify the Partnership
as to which Directed Unit Participants will need to be so restricted. At the
request of Citigroup Global Markets Inc., the
Partnership
24
will direct the transfer agent to place stop transfer restrictions upon such
securities for such period of time as is consistent with Section 5(a)(viii); and
(b) Each Underwriter severally agrees that such Underwriter shall not include any
“issuer information” (as defined in Rule 433 of the Rules and Regulations) in any “free
writing prospectus” (as defined in Rule 405 of the Rules and Regulations) used or referred
to by such Underwriter without the prior consent of the Partnership (any such issuer
information with respect to whose use the Partnership has given its consent, “Permitted
Issuer Information”); provided that (i) no such consent shall be required with respect to
any such issuer information contained in any document filed by the Partnership with the
Commission prior to the use of such free writing prospectus and (ii) “issuer information,”
as used in this Section 5(b), shall not be deemed to include information prepared by or on
behalf of such Underwriter on the basis of or derived from issuer information.
6. Expenses. The Partnership agrees to pay or cause to be paid all costs, expenses, fees and
taxes incident to and in connection with (a) the authorization, issuance, sale and delivery of the
Units, and the preparation, printing, issuance and delivery of certificates for the Units,
including any stamp or transfer taxes in connection with the original issuance and sale of the
Units; (b) the preparation, printing and filing under the Securities Act of the Registration
Statement (including any exhibits thereto), any Preliminary Prospectus, the Prospectus, any Issuer
Free Writing Prospectus and any amendment or supplement thereto; (c) the distribution of the
Registration Statement (including any exhibits thereto), any Preliminary Prospectus, the
Prospectus, any Issuer Free Writing Prospectus and any amendment or supplement thereto, all as
provided in this Agreement; (d) the production and distribution of this Agreement, any supplemental
agreement among Underwriters, and any other related documents in connection with the offering,
purchase, sale and delivery of the Units; (e) services provided by the transfer agent or registrar;
(f) any filing fees in connection with any required review by FINRA of the terms of sale of the
Units; (g) the listing of the Units on the New York Stock Exchange or any other exchange; (h) the
qualification of the Units under the securities laws of the several jurisdictions as provided in
Section 5(a)(vii) and the preparation, printing and distribution of a Blue Sky Memorandum; (i) the
preparation, printing and distribution of one or more versions of the Preliminary Prospectus and
the Prospectus for distribution in Canada, including in the form of a Canadian “wrapper” (including
related fees and expenses of Canadian counsel to the Underwriters); (j) the offer and sale of Units
by the Underwriters in connection with the Directed Unit Program, consisting of the costs and
expenses of preparation, printing and distribution of the Directed Unit Program materials and all
stamp duties or other taxes incurred by the Underwriters in connection with the Directed Unit
Program; (k) the investor presentations on any “road show” undertaken in connection with the
marketing of the Units, including, without limitation, expenses associated with any electronic
roadshow, travel and lodging expenses of the Representatives and officers of the General Partner;
and (l) all other costs and expenses incident to the performance of the obligations of the
Partnership under this Agreement; provided that, except as provided in this Section 6 and in
Section 11, the Underwriters shall pay their own costs and expenses, including the costs and
expenses of their counsel, any transfer taxes on the Units which they may sell and the expenses of
advertising any offering of the Units made by the Underwriters.
25
7. Conditions of Underwriters’ Obligations. The respective obligations of the Underwriters
hereunder are subject to the accuracy, when made and on each Delivery Date, of the representations
and warranties of the Partnership Parties contained herein, to the performance by the Partnership
Parties of their obligations hereunder, and to each of the following additional terms and
conditions:
(a) The Prospectus shall have been timely filed with the Commission in accordance with
Section 5(a)(i); the Partnership Parties shall have complied with all filing requirements
applicable to any Issuer Free Writing Prospectus used or referred to after the date hereof;
no stop order suspending the effectiveness of the Registration Statement or preventing or
suspending the use of the Prospectus or any Issuer Free Writing Prospectus shall have been
issued and no proceeding or examination for such purpose shall have been initiated or
threatened by the Commission; and any request of the Commission for inclusion of additional
information in the Registration Statement or the Prospectus or otherwise shall have been
complied with.
(b) No Underwriter shall have discovered and disclosed to the Partnership Parties on or
prior to such Delivery Date that the Registration Statement, the Prospectus or the Pricing
Disclosure Package, or any amendment or supplement thereto, contains an untrue statement of
a fact which, in the opinion of Xxxxxxx Xxxxx LLP, counsel to the Underwriters, is material
or omits to state a fact which, in the opinion of such counsel, is material and is required
to be stated therein or is necessary (in the case of the Prospectus and the Pricing
Disclosure Package, in light of the circumstances under which such statements were made) to
make the statements therein not misleading.
(c) All limited partnership and limited liability company proceedings and other legal
matters incident to the authorization, form and validity of this Agreement, the Units, the
Registration Statement, the Pricing Disclosure Package, the Prospectus and any Issuer Free
Writing Prospectus, and all other legal matters relating to this Agreement and the
transactions contemplated hereby (including the Transactions), shall be reasonably
satisfactory in all material respects to counsel for the Underwriters, and the Partnership
Parties shall have furnished to such counsel all documents and information that they may
reasonably request to enable them to pass upon such matters.
(d) Xxxxxx & Xxxxxxx LLP shall have furnished to the Representatives its written
opinion, as counsel to the Partnership, addressed to the Underwriters and dated such
Delivery Date, in form and substance reasonably satisfactory to the Representatives,
substantially in the form attached hereto as Exhibit B-1.
(e) Squire, Xxxxxxx & Xxxxxxx L.L.P. shall have furnished to the Representatives (i)
its written opinion, as counsel to the Partnership, addressed to the Underwriters and dated
such Delivery Date, in form and substance reasonably satisfactory to the Representatives,
substantially in the form attached hereto as Exhibit B-2 and (ii) a copy of their
opinion delivered to the lenders under the Credit Facility and a reliance letter, dated
such Delivery Date, in the form of Exhibit B-3 entitling the Underwriters to rely on
such opinion as if it were addressed to them.
26
(f) The Representatives shall have received from Xxxxxxx Xxxxx LLP, counsel for the
Underwriters, such opinion or opinions, dated such Delivery Date, with respect to the
issuance and sale of the Units, the Registration Statement, the Prospectus and the Pricing
Disclosure Package and other related matters as the Representatives may reasonably require,
and the Partnership Parties shall have furnished to such counsel such documents as they
reasonably request for the purpose of enabling them to pass upon such matters.
(g) At the time of execution of this Agreement, the Representatives shall have received
from Xxxxx Xxxxxxxx LLP a letter, in form and substance reasonably satisfactory to the
Representatives, addressed to the Underwriters and dated the date hereof, (i) confirming
that they are independent public accountants within the meaning of the Securities Act and
are in compliance with the applicable requirements relating to the qualification of
accountants under Rule 2-01 of Regulation S-X of the Commission, and (ii) stating, as of the
date hereof (or, with respect to matters involving changes or developments since the
respective dates as of which specified financial information is given in the Pricing
Disclosure Package, as of a date not more than three days prior to the date hereof), the
conclusions and findings of such firm with respect to the financial information and other
matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection
with registered public offerings.
(h) With respect to the letter of Xxxxx Xxxxxxxx LLP referred to in the preceding
paragraph and delivered to the Representatives concurrently with the execution of this
Agreement (the “GT initial letter”), the Partnership Parties shall have furnished to the
Representatives a letter (the “GT bring-down letter”) of such accountants, addressed to the
Underwriters and dated such Delivery Date, (i) confirming that they are independent public
accountants within the meaning of the Securities Act and are in compliance with the
applicable requirements relating to the qualification of accountants under Rule 2-01 of
Regulation S-X of the Commission, (ii) stating, as of the date of the GT bring-down letter
(or, with respect to matters involving changes or developments since the respective dates as
of which specified financial information is given in the Prospectus, as of a date not more
than three days prior to the date of the GT bring-down letter), the conclusions and findings
of such firm with respect to the financial information and other matters covered by the GT
initial letter and (iii) confirming in all material respects the conclusions and findings
set forth in the GT initial letter.
(i) At the time of execution of this Agreement, the Representatives shall have received
from Ernst & Young LLP a letter, in form and substance reasonably satisfactory to the
Representatives, addressed to the Underwriters and dated the date hereof.
(j) With respect to the letter of Ernst & Young LLP referred to in the preceding
paragraph and delivered to the Representatives concurrently with the execution of this
Agreement (the “EY initial letter”), the Partnership Parties shall have furnished to the
Representatives a letter of such accountants, addressed to the Underwriters and dated such
Delivery Date, confirming in all material respects the conclusions and findings set forth in
the EY initial letter.
27
(k) The Representatives shall have received from Xxxx X. Xxxx Company, at the time of
execution of this Agreement, an initial letter (the “initial expert letter”), in form and
substance reasonably satisfactory to the Representatives, addressed to the Underwriters and
dated the date hereof, and a subsequent letter, dated as of the Delivery Date, which such
subsequent letter shall be in form and substance reasonably satisfactory to the
Representatives and cover the period from the date of the initial expert letter to such
Delivery Date.
(l) The Partnership shall have furnished to the Representatives a certificate, dated
such Delivery Date, of the Chief Executive Officer and Chief Financial Officer of the
General Partner stating that:
(i) The representations, warranties and agreements of the Partnership Parties
in Section 1 are true and correct on and as of such Delivery Date, and the
Partnership Parties have complied with all their agreements contained herein and
satisfied all the conditions to be performed or satisfied by the Partnership Parties
hereunder at or prior to such Delivery Date;
(ii) No stop order suspending the effectiveness of the Registration Statement
has been issued; and no proceedings or examination for that purpose have been
instituted or, to the knowledge of such officers, threatened; and
(iii) Such officers have carefully examined the Registration Statement, the
Prospectus and the Pricing Disclosure Package, and, in their opinion, (A) (1) the
Registration Statement, as of the Effective Date, (2) the Prospectus, as of its date
and on the applicable Delivery Date, or (3) the Pricing Disclosure Package, as of
the Applicable Time, did not and do not contain any untrue statement of a material
fact and did not and do not omit to state a material fact required to be stated
therein or necessary to make the statements therein (except in the case of the
Registration Statement, in the light of the circumstances under which they were
made) not misleading.
(m) The New York Stock Exchange shall have approved the Units for listing, subject only
to official notice of issuance.
(n) The Lock-Up Agreement between the Representatives and each of the parties listed on
Schedule 2 hereto and, in the case of each participant in the Directed Unit Program,
the lock-up agreement contained in the Directed Unit Program materials and delivered to the
Representatives on or before the date of this Agreement, shall be in full force and effect
on such Delivery Date.
If any of the conditions specified in this Section 7 shall not have been fulfilled in all
material respects when and as provided in this Agreement, or if any of the opinions and
certificates mentioned above or elsewhere in this Agreement shall not be in all material respects
reasonably satisfactory in form and substance to the Underwriters and counsel for the Underwriters,
this Agreement and all obligations of the Underwriters hereunder may be cancelled at, or at any
time prior to, the applicable Delivery Date by the Underwriters. Notice of
28
such cancellation shall be given to the Partnership in writing or by telephone or facsimile
confirmed in writing.
All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
8. Indemnification and Contribution.
(a) Each of the Partnership Parties, jointly and severally, shall indemnify and hold
harmless each Underwriter, the directors, officers, employees and agents of each
Underwriter, each affiliate of any Underwriter who has participated in the distribution of
the Units as underwriters, each broker-dealer affiliate of any Underwriter and each other
affiliate of any Underwriter within the meaning of Rule 405 under the Securities Act, and
each person, if any, who controls any Underwriter within the meaning of Section 15 of the
Securities Act, from and against any loss, claim, damage or liability, joint or several, or
any action in respect thereof (including, without limitation, any loss, claim, damage,
liability or action relating to purchases and sales of the Units), to which that
Underwriter, director, officer, employee, agent, affiliate or controlling person may become
subject, under the Securities Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or alleged
untrue statement of a material fact contained in (A) any Preliminary Prospectus, the
Registration Statement, the Prospectus or any amendment or supplement thereto, (B) any
Issuer Free Writing Prospectus or any amendment or supplement thereto, (C) any Permitted
Issuer Information used or referred to in any “free writing prospectus” (as defined in Rule
405 of the Rules and Regulations) used or referred to by any Underwriter or (D) any “road
show” (as defined in Rule 433 of the Rules and Regulations) not constituting an Issuer Free
Writing Prospectus (a “Non-Prospectus Road Show”) or (ii) the omission or alleged omission
to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any
Issuer Free Writing Prospectus or any amendment or supplement thereto, or in any Permitted
Issuer Information or any Non-Prospectus Road Show, any material fact required to be stated
therein or necessary to make the statements therein not misleading (in the case of any
Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus, in light of
the circumstances under which such statements were made), and shall reimburse each
Underwriter and each such director, officer, employee, agent, affiliate or controlling
person promptly upon demand for any legal or other expenses reasonably incurred by that
Underwriter, director, officer, employee, agent, affiliate or controlling person in
connection with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided, however, that
the Partnership Parties shall not be liable in any such case to the extent that any such
loss, claim, damage, liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement or omission or alleged omission made in any
Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or any such amendment or supplement thereto, or in any Permitted Issuer
Information or any Non-Prospectus Road Show, in reliance upon and in conformity with
information concerning such Underwriter furnished to the Partnership Parties through the
Representatives by or on behalf of any Underwriter
29
specifically for inclusion therein, which information consists solely of the
information specified in Section 8(e). The foregoing indemnity agreement is in addition to
any liability which the Partnership Parties may otherwise have to any Underwriter or to any
director, officer, employee, agent, affiliate or controlling person of that Underwriter.
(b) Each Underwriter, severally and not jointly, shall indemnify and hold harmless each
of the Partnership Parties, the General Partner’s directors and officers who sign or consent
to be included in the Registration Statement, and each person, if any, who controls any of
the Partnership Parties within the meaning of Section 15 of the Securities Act, from and
against any loss, claim, damage or liability, joint or several, or any action in respect
thereof, to which the Partnership Parties or any such director, officer or controlling
person may become subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement
or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the
Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any amendment
or supplement thereto or in any Non-Prospectus Road Show, or (ii) the omission or alleged
omission to state in any Preliminary Prospectus, the Registration Statement, the Prospectus,
any Issuer Free Writing Prospectus or any amendment or supplement thereto or in any
Non-Prospectus Road Show any material fact required to be stated therein or necessary to
make the statements therein not misleading (in the case of any Preliminary Prospectus, the
Prospectus or any Issuer Free Writing Prospectus, in light of the circumstances under which
such statements were made), but in each case only to the extent that the untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance upon and in
conformity with written information concerning such Underwriter furnished to any other
Partnership Parties through the Representatives by or on behalf of that Underwriter
specifically for inclusion therein, which information is limited to the information set
forth in Section 8(e). The foregoing indemnity agreement is in addition to any liability
that any Underwriter may otherwise have to the Partnership Parties or any such director,
officer or controlling person.
(c) After receipt by an indemnified party under this Section 8 of notice of any claim
or the commencement of any action, the indemnified party shall, if a claim in respect
thereof is to be made against the indemnifying party under this Section 8, promptly notify
the indemnifying party in writing of the claim or the commencement of that action; provided,
however, that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has been materially
prejudiced by such failure. If any such claim or action shall be brought against an
indemnified party, and it shall notify the indemnifying party thereof, the indemnifying
party shall be entitled to participate therein and, to the extent that it wishes, jointly
with any other similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the defense of such
claim or action, the indemnifying party shall not be liable to the indemnified party under
this Section 8 for any legal or other expenses subsequently incurred by the indemnified
party under this Section 8 in connection with the defense thereof unless (i) the
indemnifying party shall have agreed in writing to pay such fees and
30
expenses, (ii) the indemnifying party shall have failed within a reasonable period of
time to assume the defense and retain counsel or (iii) the indemnified party shall have
reasonably concluded, based on the advice of counsel, that there may be defenses available
to it or them that are different from, additional to or in conflict with those available to
the Partnership Parties (in which case the indemnifying party shall not have the right to
direct the defense of such action, suit or proceeding on behalf of the indemnified party or
parties), in any of which events the indemnifying party shall pay the reasonable fees and
expenses of such counsel as such fees and expenses are incurred (it being understood,
however, that the indemnifying party shall not be liable for the expenses of more than one
separate counsel (in addition to any local counsel) in any one action, suit or proceeding or
series of related actions, suits or proceedings in the same jurisdiction representing the
indemnified parties who are parties to such action, suit or proceeding). No indemnifying
party shall (i) without the prior written consent of the indemnified parties (which consent
shall not be unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or proceeding in
respect of which indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action) unless such
settlement, compromise or consent includes an unconditional release of each indemnified
party from all liability arising out of such claim, action, suit or proceeding and does not
include any findings of fact or admissions of fault or culpability as to the indemnified
party, or (ii) be liable for any settlement of any such action effected without its written
consent (which consent shall not be unreasonably withheld), but if settled with the consent
of the indemnifying party or if there be a final judgment for the plaintiff in any such
action, the indemnifying party agrees to indemnify and hold harmless any indemnified party
from and against any loss or liability by reason of such settlement or judgment.
(d) If the indemnification provided for in this Section 8 shall for any reason be
unavailable to or insufficient to hold harmless an indemnified party under Section 8(a) or
8(b) in respect of any loss, claim, damage or liability, or any action in respect thereof,
referred to therein, then each indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by such indemnified party as a
result of such loss, claim, damage or liability, or action in respect thereof, (i) in such
proportion as shall be appropriate to reflect the relative benefits received by the
Partnership Parties, on the one hand, and the Underwriters, on the other, from the offering
of the Units or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Partnership
Parties, on the one hand, and the Underwriters, on the other, with respect to the statements
or omissions that resulted in such loss, claim, damage or liability, or action in respect
thereof, as well as any other relevant equitable considerations. The relative benefits
received by the Partnership Parties, on the one hand, and the Underwriters, on the other,
with respect to such offering shall be deemed to be in the same proportion as the total net
proceeds from the offering of the Units purchased under this Agreement (before deducting
expenses) received by the Partnership Parties, as set forth in the table on the cover page
of the Prospectus, on the one hand, and the total underwriting discounts and commissions
received by the Underwriters with respect to the Units purchased under this Agreement,
31
as set forth in the table on the cover page of the Prospectus, on the other hand. The
relative fault shall be determined by reference to whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Partnership Parties or the Underwriters, the intent
of the parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission. The Partnership Parties and the Underwriters
agree that it would not be just and equitable if contributions pursuant to this Section 8(d)
were to be determined by pro rata allocation (even if the Underwriters were treated as one
entity for such purpose) or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section 8(d) shall be deemed to include, for purposes of
this Section 8(d), any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8(d), no Underwriter shall be required to contribute any amount
in excess of the amount by which the net proceeds from the sale of the Units underwritten by
it exceeds the amount of any damages that such Underwriter has otherwise paid or become
liable to pay by reason of any untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute as
provided in this Section 8(d) are several in proportion to their respective underwriting
obligations and not joint.
(e) The Underwriters severally confirm and the Partnership Parties acknowledge and
agree that the statements regarding the delivery of Units by the Underwriters set forth on
the cover page of the Prospectus, and the statements in the first paragraph following the
table under the subheading “Commissions and Expenses,” the third paragraph under the
subheading “Lock-Up Agreements,” the information under the subheadings “Offering Price
Determination,” “Stabilization, Short Positions and Penalty Bids,” “Electronic
Distribution,” “Discretionary Sales” and “Selling Restrictions” and the second paragraph
under the subheading “Relationships/FINRA Conduct Rules,” each as set forth under the
caption “Underwriting” in the Pricing Disclosure Package and the Prospectus, are correct and
constitute the only information concerning such Underwriters furnished in writing to the
Partnership Parties by or on behalf of the Underwriters specifically for inclusion in any
Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or any amendment or supplement thereto or in any Non-Prospectus Road Show.
(f) The Partnership Parties shall indemnify and hold harmless Citigroup Global Markets
Inc. (including their directors, officers, employees and agents, their affiliates who has
participated in the distribution of the Units as underwriters, their broker-dealer
affiliates, and their affiliates within the meaning of Rule 405 of the Securities Act) and
each person, if any, who controls Citigroup Global Markets Inc. within the meaning of
Section 15 of the Securities Act (the “Directed Unit Program Entities”), from and against
any loss, claim, damage or liability or any action in respect thereof to which any of the
Directed Unit Program Entities may become subject, under
32
the Securities Act or otherwise, insofar as such loss, claim, damage, liability or
action (i) arises out of, or is based upon, any untrue statement or alleged untrue statement
of a material fact contained in any material prepared by or with the approval of any of the
Partnership Parties for distribution to Directed Unit Participants in connection with the
Directed Unit Program or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading,
(ii) arises out of, or is based upon, the failure of the Directed Unit Participant to pay
for and accept delivery of Directed Units that the Directed Unit Participant agreed to
purchase or (iii) is otherwise related to the Directed Unit Program; provided that the
Partnership Parties shall not be liable under this clause (iii) for any loss, claim, damage,
liability or action that is determined in a final judgment by a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of the
Directed Unit Program Entities. The Partnership Parties shall reimburse the Directed Unit
Program Entities promptly upon demand for any legal or other expenses reasonably incurred by
them in connection with investigating or defending or preparing to defend against any such
loss, claim, damage, liability or action as such expenses are incurred.
9. Defaulting Underwriters. If, on any Delivery Date, any Underwriter defaults in the
performance of its obligations under this Agreement, the remaining non-defaulting Underwriters
shall be obligated to purchase the Units that the defaulting Underwriter agreed but failed to
purchase on such Delivery Date in the respective proportions which the number of Firm Units set
forth opposite the name of each remaining non-defaulting Underwriter in Schedule 1 hereto
bears to the total number of Firm Units set forth opposite the names of all the remaining
non-defaulting Underwriters in Schedule 1 hereto; provided, however, that the remaining
non-defaulting Underwriters shall not be obligated to purchase any of the Units on such Delivery
Date if the total number of Units that the defaulting Underwriter or Underwriters agreed but failed
to purchase on such date exceeds 10% of the total number of Units to be purchased on such Delivery
Date. If the foregoing maximum is exceeded, the remaining non-defaulting Underwriters, or those
other underwriters satisfactory to the Representatives who so agree, shall have the right, but
shall not be obligated, to purchase, in such proportion as may be agreed upon among them, all the
Units to be purchased on such Delivery Date. If the remaining Underwriters or other underwriters
satisfactory to the Representatives do not elect to purchase the Units that the defaulting
Underwriter or Underwriters agreed but failed to purchase on such Delivery Date, this Agreement
(or, with respect to any Option Unit Delivery Date, the obligation of the Underwriters to purchase,
and of the Partnership to sell, the Option Units) shall terminate without liability on the part of
any non-defaulting Underwriter or any of the Partnership Parties. As used in this Agreement, the
term “Underwriter” includes, for all purposes of this Agreement unless the context requires
otherwise, any party not listed in Schedule 1 hereto that, pursuant to this Section 9,
purchases 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 Parties for damages caused by its default. If other Underwriters are obligated
or agree to purchase the Units of a defaulting or withdrawing Underwriter, either the
Representatives or the Partnership may postpone the Delivery Date for up to seven full business
days in order to effect any changes that in the opinion of counsel for the Partnership or counsel
for the Underwriters may be necessary in the Registration Statement, the Prospectus or in any other
document or arrangement.
33
10. Termination. This Agreement shall be subject to termination, without liability on the
part of any Underwriters to the Partnership Parties, by notice to the Partnership, if prior to the
Initial Delivery Date or any Option Unit Delivery Date (if different from the Initial Delivery Date
and then only as to the Option Units), as the case may be, (i) trading in the Common Units shall
have been suspended by the Commission or the New York Stock Exchange, (ii) trading in securities
generally on the New York Stock Exchange shall have been suspended or limited or minimum prices
shall have been established; (iii) a banking moratorium shall have been declared either by federal
or New York state authorities or a material disruption in commercial banking or securities
settlement or clearance services in the United States shall have occurred; or (iv) there shall have
occurred any outbreak or escalation of hostilities or acts of terrorism, declaration by the United
States of a national emergency or war, or other calamity or crisis or any change in financial,
political or economic conditions in the United States or elsewhere, the effect of which on
financial markets is such as to make it, in the sole judgment of the Representatives, impractical
or inadvisable to proceed with the offering or delivery of the Units as contemplated by the
Prospectus (exclusive of any amendment or supplement thereto). Notice of such termination may be
given to the Partnership by telegram, telecopy or telephone and shall be subsequently confirmed by
letter.
11. Termination Expenses. If this Agreement shall terminate or shall be terminated after
execution pursuant to any provisions hereof (otherwise than pursuant to Section 9 hereof or Section
10 hereof (except pursuant to Section 10(i)) or if this Agreement shall be terminated by the
Underwriters because of any failure or refusal on the part of the Partnership Parties to comply
with the terms or fulfill any of the conditions of this Agreement, the Partnership Parties agree to
reimburse the Underwriters for all reasonable out-of-pocket expenses (including reasonable fees and
expenses of counsel for the Underwriters) incurred by the Underwriters in connection herewith.
12. Research Analyst Independence. Each of the Partnership Parties acknowledges that the
Underwriters’ research analysts and research departments are required to be independent from their
respective investment banking divisions and are subject to certain regulations and internal
policies, and that such Underwriters’ research analysts may hold views and make statements or
investment recommendations and/or publish research reports with respect to the Partnership and/or
the offering of the Units that differ from the views of their respective investment banking
divisions. Each of the Partnership Parties hereby waives and releases, to the fullest extent
permitted by law, any claims that the Partnership Parties 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 Parties by such Underwriters’ investment
banking divisions. Each of the Partnership Parties acknowledges that each of the Underwriters is a
full service securities firm and as such from time to time, subject to applicable securities laws,
may effect transactions for its own account or the account of its customers and hold long or short
positions in debt or equity securities of the companies that may be the subject of the transactions
contemplated by this Agreement.
13. No Fiduciary Duty. Each of the Partnership Parties acknowledges and agrees that, in
connection with this offering, sale of the Units or any other services the Underwriters may be
deemed to be providing hereunder, notwithstanding any preexisting
34
relationship, advisory or otherwise, between the parties or any oral representations or
assurances previously or subsequently made by the Underwriters: (i) no fiduciary or agency
relationship between any of the Partnership Parties and any other person, on the one hand, and the
Underwriters, on the other hand, exists; (ii) the Underwriters are not acting as advisors, expert
or otherwise, to any of the Partnership Parties, including, without limitation, with respect to the
determination of the public offering price of the Units, and such relationship between the
Partnership Parties, on the one hand, and the Underwriters, on the other hand, is entirely and
solely commercial, based on arms’-length negotiations; (iii) any duties and obligations that the
Underwriters may have to any of the Partnership Parties shall be limited to those duties and
obligations specifically stated herein; and (iv) the Underwriters and their respective affiliates
may have interests that differ from those of the Partnership Parties. Each of the Partnership
Parties hereby waives any claims that any such entity may have against the Underwriters with
respect to any breach of fiduciary duty in connection with this offering of Units.
14. Notices, Etc. All statements, requests, notices and agreements hereunder shall be in
writing, and:
(a) if to the Underwriters, shall be delivered or sent by mail or facsimile
transmission to (i) Barclays Capital Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Syndicate Registration (Fax: 000-000-0000), with a copy, in the case of any
notice pursuant to Section 8(c), to the Director of Litigation, Office of the General
Counsel, Barclays Capital Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 and (ii)
Citigroup Global Markets Inc., 000/000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: General Counsel (facsimile: (000) 000-0000); and
(b) if to the Partnership, shall be delivered or sent by mail or facsimile transmission
to the address of the Company set forth in the Registration Statement, Attention: Xxxxxxx X.
Xxxxxxx, General Counsel (Fax: (000) 000-0000).
Any such statements, requests, notices or agreements shall take effect at the time of receipt
thereof. The Partnership Parties shall be entitled to act and rely upon any request, consent,
notice or agreement given or made on behalf of the Underwriters by Barclays Capital Inc. on behalf
of the Representatives.
15. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the Underwriters, the Partnership Parties and their respective successors.
This Agreement and the terms and provisions hereof are for the sole benefit of only those persons,
except that (A) the representations, warranties, indemnities and agreements of the Partnership
Parties contained in this Agreement shall also be deemed to be for the benefit of the directors,
officers, employees and agents of each of the Underwriters, each affiliate of any Underwriter who
has participated in the distribution of Units as underwriters, each broker-dealer affiliate of any
Underwriter and each other affiliate of any Underwriter within the meaning of Rule 405 under the
Securities Act, and each person or persons, if any, who control any Underwriter within the meaning
of Section 15 of the Securities Act and (B) the indemnity agreement of the Underwriters contained
in Section 8(b) of this Agreement shall be deemed to be for the benefit of the General Partner’s
directors and officers who sign or consent to be included in the Registration Statement, and any
person controlling the Partnership Parties within the
35
meaning of Section 15 of the Securities Act. Nothing in this Agreement is intended or shall
be construed to give any person, other than the persons referred to in this Section 15, any legal
or equitable right, remedy or claim under or in respect of this Agreement or any provision
contained herein.
16. Survival. The respective indemnities, representations, warranties and agreements of the
Partnership Parties and the Underwriters contained in this Agreement or made by or on behalf of
them, respectively, pursuant to this Agreement, shall survive the delivery of and payment for the
Units and shall remain in full force and effect, regardless of any investigation made by or on
behalf of any of them or any person controlling any of them.
17. Definition of the Terms “Business Day” and “Subsidiary”. For purposes of this Agreement,
(a) “business day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on
which banking institutions in New York City are generally authorized or obligated by law or
executive order to close and (b) “subsidiary” has the meaning set forth in Rule 405 of the Rules
and Regulations.
18. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.
19. Counterparts. This Agreement may be executed in one or more counterparts and, if executed
in more than one counterpart, the executed counterparts shall each be deemed to be an original but
all such counterparts shall together constitute one and the same instrument.
20. Headings. The headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.
[Signature pages follow]
36
If the foregoing correctly sets forth the agreement between the Partnership Parties and the
Underwriters, please indicate your acceptance in the space provided for that purpose below.
Very truly yours, | ||||||||
Oxford Resources GP, LLC | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
Oxford Resource Partners, LP | ||||||||
By: | Oxford Resources GP, LLC, | |||||||
its general partner | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
Oxford Mining Company, LLC | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
Accepted: | ||||
Barclays Capital Inc. | ||||
Citigroup Global Markets Inc. | ||||
For themselves and as Representatives | ||||
of the several Underwriters named | ||||
in Schedule 1 hereto | ||||
Barclays Capital Inc. | ||||
By:
|
||||
Authorized Representative | ||||
Citigroup Global Markets Inc. | ||||
By:
|
||||
Authorized Representative |
SCHEDULE 1
Number of Firm Units | ||||
Underwriters | to be Purchased | |||
Barclays Capital Inc. |
||||
Citigroup Global Markets Inc. |
||||
Credit Suisse Securities (USA) LLC |
||||
Xxxxxxx Xxxxx & Associates, Inc. |
||||
Xxxxx Fargo Securities, LLC |
||||
Total |
||||
Schedule 1
SCHEDULE 2
PERSONS DELIVERING LOCK-UP AGREEMENTS
Directors
Officers
Unitholders
Schedule 2
SCHEDULE 3
1. | Public offering price for the Units: $[___] | |
2. | Number of Units: [___] |
Schedule 3
SCHEDULE 4
1. | Letter dated May 3, 2010 for Equipment Lease Payoff/Termination and Equipment Purchase Transaction executed by Caterpillar Financial Services Corporation in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. | |
2. | Letter dated May 12, 2010 for Equipment Lease Payoff/Termination and Equipment Purchase Transaction executed by General Electric Capital Corporation in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. | |
3. | Letter dated May 10, 2010 for Equipment Lease Termination and Equipment Purchase Transaction executed by OMCO Leasing Corporation in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. | |
4. | Letter dated May 12, 2010 for Equipment Lease Payoff/Termination and Equipment Purchase Transaction executed by Komatsu Financial Limited Partnership in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. | |
5. | Letter dated May 12, 2010 for Payoff Calculation and Payoff Transaction executed by Sovereign Bank in favor of Oxford Resource Partners, LP and Oxford Mining Company, LLC. | |
6. | Letter agreement dated June 2, 2010 for Lease Payoff/Termination and Equipment Purchase Transaction between Marquette Equipment Finance, LLC, on the one hand, and Oxford Resource Partners, LP and Oxford Mining Company, LLC, on the other hand. |
Schedule 4
EXHIBIT A
LOCK-UP LETTER AGREEMENT
Barclays Capital Inc.
Citigroup Global Markets Inc.
As Representatives of the several Underwriters
named in Schedule 1 to the Underwriting Agreement
Citigroup Global Markets Inc.
As Representatives of the several Underwriters
named in Schedule 1 to the Underwriting Agreement
c/o Barclays Capital Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
The undersigned understands that you and certain other firms (the “Underwriters”) propose to
enter into an Underwriting Agreement (the “Underwriting Agreement”) providing for the purchase by
the Underwriters of common units (the “Common Units”) representing limited partner interests in
Oxford Resource Partners, LP, a Delaware limited partnership (the “Partnership”), and that the
Underwriters propose to reoffer the Common Units to the public (the “Offering”).
In consideration of the execution of the Underwriting Agreement by the Underwriters, and for
other good and valuable consideration, the undersigned hereby irrevocably agrees that
without the prior written consent of Barclays Capital Inc. and
Citigroup Global Markets Inc., on behalf of the Underwriters, the undersigned will not, 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 (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 Securities and Exchange Commission and Common Units that may be issued upon
exercise of any options or warrants) or securities convertible into or exercisable or exchangeable
for Common Units, except for
transfers of Common Units (i) to an affiliate or (ii) as a bona fide gift (provided that in the
case of any such transfer (A) the transferee or donee shall execute and deliver a lock-up letter
agreement substantially in the form of this lock-up letter agreement and (B) no filing under
Section 16(a) of the Securities Exchange Act of 1934, as amended, reporting a reduction in
beneficial ownership of Common Units, shall be required or voluntarily made during the Lock-Up
Period (as defined below)), (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 the 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, (3) make any demand for or
exercise any right or cause to be filed a registration
statement, including any amendments thereto, with respect to the registration of any Common
Units or securities convertible into or exercisable or exchangeable for Common Units or any other
securities of the Partnership or (4) publicly disclose the intention to do any of the foregoing,
for a period commencing on the date hereof and ending on the 180th day after the date of the
Prospectus relating to the Offering (such 180-day period, the “Lock-Up Period”).
Notwithstanding the foregoing, if (1) during the last 17 days of the Lock-Up Period, the
Partnership issues an earnings release or material news or a material event relating to the
Partnership occurs, or (2) prior to the expiration of the Lock-Up Period, the Partnership announces
that it will release earnings results during the 16-day period beginning on the last day of the
Lock-Up Period, then the restrictions imposed by this Lock-Up Letter Agreement shall continue to
apply until the expiration of the 18-day period beginning on the issuance of the earnings release
or the announcement of the material news or the occurrence of the material event, unless the
Representatives waive such extension in writing. The undersigned hereby further agrees that, prior
to engaging in any transaction or taking any other action that is subject to the terms of this
Lock-Up Letter Agreement during the period from the date of this Lock-Up Letter Agreement to and
including the 34th day following the expiration of the Lock-Up Period, the undersigned will give
notice thereof to the Partnership and will not consummate such transaction or take any such action
unless the undersigned has received written confirmation from the Partnership that the Lock-Up
Period (as such may have been extended pursuant to this paragraph) has expired.
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 the Underwriters 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 which survive termination) shall
terminate or be terminated prior to payment for and delivery of the Units, the undersigned
automatically shall be released from any 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. The 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, personal representatives,
successors and assigns of the undersigned.
[Signature page follows]
A-2
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, personal representatives,
successors and assigns of the undersigned.
Very truly yours, |
||||
By: | ||||
Name: | ||||
Title: | ||||
Dated: ___, 2010
X-0
XXXXXXX X-0
FORM OF OPINION OF XXXXXX & XXXXXXX LLP
(i) Each of the General Partner and the Partnership has been duly formed and is validly
existing and in good standing as a limited partnership or a limited liability company, as the case
may be, under the laws of its jurisdiction of formation, with all limited liability company or
limited partnership, as the case may be, power and authority necessary to own or hold its
properties and conduct the businesses in which it is engaged and, in the case of the General
Partner, to act as the general partner of the Partnership, in each case in all material respects.
Each of the General Partner and the Partnership is duly registered or qualified to do business and
is in good standing as a foreign limited partnership or limited liability company, as applicable,
in each jurisdiction set forth opposite its name on Exhibit 1 to this opinion.
(ii) C&T Coal and AIM Oxford are the record holders of 33.7% and 66.3%, respectively, of the
issued and outstanding membership interests in the General Partner; such membership interests have
been duly authorized and validly issued in accordance with the GP LLC Agreement and are fully paid
(to the extent required under the GP LLC Agreement) and non-assessable (except as such
nonassessability may be affected by Sections 18-303, 18-607 and 18-804 of the Delaware LLC Act);
and C&T Coal and AIM Oxford hold such membership interests free and clear of all Liens (A) in
respect of which a financing statement under the Uniform Commercial Code of the State of Delaware
naming C&T Coal or AIM Oxford as debtors is on file in the office of the Secretary of State of the
State of Delaware, or (B) otherwise known to such counsel without independent investigation, other
than those created by or arising under the Delaware LLC Act.
(iii) The General Partner is the sole general Partner of the Partnership, with a 2.0% general
partner interest in the Partnership; such general partner interest has been duly authorized and
validly issued in accordance with the Partnership Agreement; and the General Partner owns such
general partner interest free and clear of all Liens (A) in respect of which a financing statement
under the Uniform Commercial Code of the State of Delaware naming the General Partner as debtor is
on file in the office of the Secretary of State of the State of Delaware or (B) otherwise known to
such counsel without independent investigation, other than those created by or arising under the
Delaware LP Act.
(iv) C&T Coal and AIM Oxford are the record holders of all of the outstanding Sponsor Units;
the Sponsor 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 non-assessable (except as such nonassessability may
be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act); and AIM Oxford holds its
Sponsor Units free and clear of all Liens (A) in respect of which a financing statement under the
Uniform Commercial Code of the State of Delaware naming AIM Oxford as debtor is on file in the
office of the Secretary of State of the State of Delaware, or (B) otherwise known to such counsel
without independent investigation, other than those created by or arising under the Delaware LP
Act.
(v) The Units and the limited partner interests represented thereby have been duly authorized
in accordance with the Partnership Agreement and, when issued and delivered to the Underwriters
against payment therefor in accordance with the Underwriting Agreement, have
B-1-1
been validly issued 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 or 17-804 of the Delaware LP Act). Other than the Sponsor Units, the Incentive Distribution
Rights and the [LTIP Units], the Units are the only limited partnership interests in the
Partnership issued and outstanding.
(vi) The General Partner owns all of the Incentive Distribution Rights; such Incentive
Distribution Rights and the limited partner interests represented thereby have been duly authorized
and validly issued in accordance with the Partnership Agreement and are fully paid (to the extent
required under the Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act); and
the General Partner owns such Incentive Distribution Rights free and clear of all Liens (A) in
respect of which a financing statement under the Uniform Commercial Code of the State of Delaware
naming the General Partner as debtor is on file in the office of the Secretary of State of the
State of Delaware, or (B) otherwise known to such counsel without independent investigation, other
than those created by or arising under the Delaware LP Act.
(vii) Except as described in the Pricing Disclosure Package and the Prospectus or as set forth
in the Partnership Agreement, the GP LLC Agreement, the Investors’ Rights Agreement, unitholder
agreements with the LTIP Participants or the Employment Agreement with Xxxxxxx X. Xxxxxx, there are
no (i) preemptive rights or other rights to subscribe for or to purchase, or restrictions upon the
voting or transfer of, any equity interests in any of the General Partner or the Partnership or
(ii) outstanding options or warrants to purchase any securities of any of the General Partner or
the Partnership. Except for such rights that have been waived or complied with, to the knowledge
of such counsel neither the filing of the Registration Statement or the sale of the Units
contemplated by the Underwriting Agreement gives rise to any rights for or relating to the
registration of any Common Units or other securities of any of the General Partner or the
Partnership.
(viii) The Partnership has all requisite limited partnership power and authority to issue,
sell and deliver (i) the Units in accordance with and upon the terms and conditions set forth in
the Underwriting Agreement and the Partnership Agreement and (ii) the Sponsor Units and Incentive
Distribution Rights, in accordance with and upon the terms and conditions set forth in the
Partnership Agreement. Each of the Partnership and the General Partner has all requisite limited
partnership and limited liability company power and authority, respectively, to execute and deliver
the Underwriting Agreement and to perform its respective obligations thereunder. All limited
partnership and limited liability company action, as the case may be, required to be taken by any
of the Partnership or the General Partner or any of their respective unitholders, members or
partners for the authorization, issuance, sale and delivery of the Units, the Sponsor Units and the
Incentive Distribution Rights and the consummation of the transactions (including the Transactions)
contemplated by the Underwriting Agreement has been validly taken.
(ix) The Underwriting Agreement has been duly authorized and validly executed and delivered by
each of the General Partner and the Partnership.
(x) [The GP LLC Agreement, the Partnership Agreement and the Administrative Services Agreement
have been duly authorized by each of the General Partner
B-1-2
and the Partnership, as applicable, and are valid and legally binding agreements, enforceable
against the General Partner and the Partnership, as applicable, in accordance with their terms;
provided, however, that, with respect to each such agreement, the enforceability thereof may be
limited by applicable bankruptcy, insolvency, fraudulent transfer or conveyance, 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
equity or at law); and provided, further, that the indemnity, contribution and exoneration
provisions contained in any such agreements may be limited by applicable laws relating to fiduciary
duties, public policy and an implied covenant of good faith and fair dealing.]
(xi) None of (i) the offering, issuance and sale by the Partnership of the Units and the
application of the proceeds from the sale of the Units as described under “Use of Proceeds” in the
Pricing Disclosure Package and the Prospectus, (ii) the execution, delivery and performance of the
Underwriting Agreement by the General Partner and the Partnership or (iii) the consummation of the
transactions (including the Transactions) contemplated by the Underwriting Agreement (A) conflicts
or will conflict with, or constitutes or will constitute a violation of, the partnership agreement,
limited liability company agreement, certificate of formation, certificate of limited partnership
or other constituent document of any of the General Partner and the Partnership, (B) conflicts or
will conflict with, or constitutes or will constitute a breach or violation of, or a default (or an
event that, 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 filed
as an exhibit to the Registration Statement], (C) violates or will violate the Delaware LP Act, the
Delaware LLC Act or federal law or (D) results or will result in the creation or imposition of any
Lien upon any property or assets of any of the Partnership or the General Partner, which conflicts,
breaches, violations, defaults or Liens, in the case of clauses (B), (C) or (D), would reasonably
be expected to have a Material Adverse Effect or materially impair the ability of any of the
General Partner and the Partnership to consummate the transactions (including the Transactions)
contemplated under the Underwriting Agreement, it being understood that such counsel need not
express an opinion in clause (C) of this paragraph (xi) with respect to any securities or other
anti-fraud law.
(xii) No permit, consent, approval, authorization or order, or registration, filing or
qualification under the Delaware LP Act, the Delaware LLC Act or federal law, is required in
connection with (i) the offering, issuance or sale by the Partnership of the Units, (ii) the
application of the proceeds therefrom as described under “Use of Proceeds” in the Pricing
Disclosure Package and the Prospectus, (iii) the execution and delivery of the Underwriting
Agreement by the General Partner or the Partnership and (iv) the consummation of the transactions
(including the Transactions) contemplated under the Underwriting Agreement, except (A) such as have
been obtained under the Securities Act (as to which such counsel need not express any opinion), (B)
such as may be required under the blue sky laws of any jurisdiction or the by-laws and rules of
FINRA in connection with the purchase and distribution by the Underwriters of the Units in the
manner contemplated herein and in the Pricing Disclosure Package and the Prospectus (as to which
such counsel need not express any opinion), (C) such that the failure to obtain would not
reasonably be expected to have a Material Adverse Effect or materially impair the ability of the
Partnership to consummate the transactions contemplated by
B-1-3
the Underwriting Agreement and (D) such others that have been obtained or taken and are in
full force and effect.
(xiii) The Common Units, the Subordinated Units and the Incentive Distribution Rights conform
in all material respects to the descriptions thereof set forth under the captions “Cash
Distribution Policy and Restrictions on Distributions,” “How We Make Cash Distributions,” and
“Description of the Common Units” in the Pricing Disclosure Package and the Prospectus.
(xiv) The statements made in the Pricing Disclosure Package and the Prospectus under the
captions “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Credit Facility,” “Business—Regulation and Laws,”
“Conflicts of Interest and Fiduciary Duties,” “Cash Distribution Policy and Restrictions of
Distributions,” “The Partnership Agreement,” “Certain Relationships and Related Party
Transactions,” “How We Make Cash Distributions,” and “Description of the Common Units,” insofar as
they purport to constitute summaries of the terms of statutes, rules or regulations, legal and
governmental proceedings or contracts and other documents, constitute accurate summaries of the
terms of such statutes, rules and regulations, legal and governmental proceedings and contracts and
other documents in all material respects.
(xv) The opinion of Xxxxxx & Xxxxxxx LLP that is filed as Exhibit 8.1 to the Registration
Statement is confirmed and the Underwriters may rely upon such opinion as if it were addressed to
them.
(xvi) The Registration Statement was declared effective under the Securities Act as of the
date and time specified in such opinion, and the Prospectus was filed with the Commission pursuant
to the subparagraph of Rule 424(b) of the Rules and Regulations specified in such opinion on the
date specified therein. To such counsel’s knowledge, no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceeding or examination for such purpose has
been instituted or threatened by the Commission.
(xvii) (A) The Registration Statement, on the Effective Date and on the applicable Delivery
Date, and (B) the Prospectus, when filed with the Commission pursuant to Rule 424(b) and on the
applicable Delivery Date, were, on their face, appropriately responsive, in all material respects,
to the requirements of the Securities Act and the Rules and Regulations, except that in each case
such counsel need express no opinion with respect to the financial statements or other financial
information and reserve data contained in or omitted from the Registration Statement or the
Prospectus.
(xviii) None of the Oxford Entities is an “investment company” within the meaning of and
subject to regulation under the Investment Company Act of 1940, as amended.
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon the
representations of the Partnership Parties set forth in the Underwriting Agreement and upon
certificates of officers and employees of the Oxford Entities and upon information obtained from
public officials, (B) assume that all documents submitted to them as originals are authentic, that
all copies submitted to them conform to the originals thereof, and that the signatures on all
B-1-4
documents examined by them are genuine, (C) state that their opinion is limited to federal
laws, the Delaware LP Act, the Delaware LLC Act, and the laws of the State of Texas, (D) with
respect to the opinions as to the due qualification or registration as a foreign limited
partnership or limited liability company, as the case may be, of the Oxford Entities, such opinions
are based upon certificates of foreign qualification or registration provided by the Secretary of
State of the states listed on an annex to be attached to such counsel’s opinion (each of which
shall be dated as of a date not more than fourteen days prior to the Closing Date and shall be
provided to counsel to the Underwriters), and (F) state that they express no opinion with respect
to (i) title of any of the Oxford Entities to their respective real or personal property, (ii) any
permits to own or operate any real or personal property or (iii) state or local taxes or tax
statutes to which any of the limited partners of the Partnership or any of the Oxford Entities may
be subject.
In addition, such counsel shall state that they have participated in conferences with officers
and other representatives of the Partnership Parties and the independent public accountants of the
Partnership and your representatives, at which the contents of the Registration Statement, the
Pricing Disclosure Package and the Prospectus and related matters were discussed, and although such
counsel have not independently verified, are not passing upon, and are not assuming any
responsibility for the accuracy, completeness or fairness of the statements contained in, the
Registration Statement, the Pricing Disclosure Package and the Prospectus (except to the extent
specified in the foregoing opinion), based on the foregoing, no facts have come to such counsel’s
attention that lead such counsel to believe that:
(A) the Registration Statement, as of the Effective Date, contained an untrue
statement of a material fact or omitted to state any material fact required to be stated
therein or necessary to make the statements therein not misleading;
(B) the Pricing Disclosure Package, as of the Applicable Time, contained any untrue
statement of a material fact or omitted to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were
made, not misleading; or
(C) the Prospectus, as of its date and as of such Delivery Date, contained or
contains any untrue statement of a material fact or omitted or omits to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;
it being understood that such counsel express no statement or belief in this letter with respect to
(i) the financial statements and related schedules, including the notes and schedules thereto and
the auditors’ reports thereon, or (ii) any other financial, accounting, reserve or related
statistical information included in or omitted from the Registration Statement, the Pricing
Disclosure Package or the Prospectus.
B-1-5
EXHIBIT B-2
FORM OF OPINION OF SQUIRE, XXXXXXX & XXXXXXX L.L.P.
(i) Each of the Operating Company, Xxxxxxxx Resources, Oxford Kentucky and Xxxxx has been duly
formed and is validly existing and in good standing as a limited liability company under the laws
of its jurisdiction of formation, with all limited liability company power and authority necessary
to own or hold its properties and conduct the businesses in which it is engaged. Each of the
Operating Company, Xxxxxxxx Resources, Oxford Kentucky and Xxxxx is duly registered or qualified to
do business and is in good standing as a foreign limited liability company in each jurisdiction set
forth opposite its name on Exhibit 1 to this opinion.
(ii) The Operating Company Operating Agreement, the Xxxxxxxx Operating Agreement, the Oxford
Kentucky Operating Agreement, the Xxxxx Operating Agreement and each of the Lease Buyout Agreements
have been duly authorized by each of the Oxford Entities that are parties thereto and are valid and
legally binding agreements, enforceable by and against the Oxford Entities that are parties thereto
in accordance with their terms; provided, however, that, with respect to each Lease Buyout
Agreement, the enforceability thereof may be limited by applicable bankruptcy, insolvency,
fraudulent transfer or conveyance, 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 equity or at law); and provided, further, that
the indemnity, contribution and exoneration provisions contained in any such agreements may be
limited by applicable laws relating to fiduciary duties, public policy and an implied covenant of
good faith and fair dealing.
(iii) Except as described in the Pricing Disclosure Package and the Prospectus or as set forth
in the Operating Company Operating Agreement, the Xxxxxxxx Operating Agreement, the Oxford Kentucky
Operating Agreement or the Xxxxx Operating Agreement, there are no (i) preemptive rights or other
rights to subscribe for or to purchase, or restrictions upon the voting or transfer of, any equity
interests in any of the Operating Company, Xxxxxxxx Resources, Oxford Kentucky or Xxxxx or (ii)
outstanding options or warrants to purchase any securities of any of the Operating Company,
Xxxxxxxx Resources, Oxford Kentucky or Xxxxx. Except for such rights that have been waived or
complied with, to the knowledge of such counsel none of the filing of the Registration Statement or
the sale of the Units contemplated by the Underwriting Agreement gives rise to any rights for or
relating to the securities of any of the Operating Company, Xxxxxxxx Resources, Oxford Kentucky or
Xxxxx.
(iv) To such counsel’s knowledge, there are no legal or governmental proceedings pending to
which any of the Oxford Entities is a party or of which any property or assets of any of the Oxford
Entities is the subject that would reasonably be expected to have a Material Adverse Effect or
would reasonably be expected to have a material adverse effect on the performance of the
Underwriting Agreement or the consummation of the transactions (including the Transactions)
contemplated thereby; and, to such counsel’s knowledge, no such proceedings are threatened or
contemplated by governmental authorities or others.
(v) C&T Coal owns its Sponsor Units free and clear of all Liens (A) in respect of which a
financing statement under the Uniform Commercial Code of the State of Ohio naming C&T Coal as
debtor is on file in the office of the Secretary of State of the State of Ohio, or (B) otherwise
known to such counsel without independent investigation.
B-2-1
(vi) The Partnership owns 100% of the issued and outstanding membership interests in the
Operating Company; such membership interests have been duly authorized and validly issued in
accordance with the Operating Company Operating Agreement and are fully paid (to the extent
required under the Operating Company Operating Agreement) and non-assessable; and the Partnership
owns such membership interests free and clear of all Liens (A) in respect of which a financing
statement under the Uniform Commercial Code of the State of Delaware naming the Partnership as
debtor is on file in the office of the Secretary of State of the State of Delaware, or (B)
otherwise known to such counsel without independent investigation.
(vii) The Operating Company owns 51% of the issued and outstanding membership interests in
Xxxxxxxx Resources; such membership interests have been duly authorized and validly issued in
accordance with the Xxxxxxxx Operating Agreement and are fully paid (to the extent required under
the Xxxxxxxx Operating Agreement) and non-assessable; and the Operating Company owns such
membership interests free and clear of all Liens (A) in respect of which a financing statement
under the Uniform Commercial Code of the State of Ohio naming the Operating Company as debtor is on
file in the office of the Secretary of State of the State of Ohio, or (B) otherwise known to such
counsel without independent investigation.
(viii) The Operating Company owns 100% of the issued and outstanding membership interests in
Oxford Kentucky; such membership interests have been duly authorized and validly issued in
accordance with the Oxford Kentucky Operating Agreement and are fully paid (to the extent required
under the Oxford Kentucky Operating Agreement) and non-assessable; and the Operating Company owns
such membership interests free and clear of all Liens (A) in respect of which a financing statement
under the Uniform Commercial Code of the State of Ohio naming the Operating Company as debtor is on
file in the office of the Secretary of State of the State of Ohio, or (B) otherwise known to such
counsel without independent investigation.
(ix) The Operating Company owns 100% of the issued and outstanding membership interests in
Xxxxx; such membership interests have been duly authorized and validly issued in accordance with
the Xxxxx Operating Agreement and are fully paid (to the extent required under the Xxxxx Operating
Agreement) and non-assessable; and the Operating Company owns such membership interests free and
clear of all Liens (A) in respect of which a financing statement under the Uniform Commercial Code
of the State of Ohio naming the Operating Company as debtor is on file in the office of the
Secretary of State of the State of Ohio, or (B) otherwise known to such counsel without independent
investigation.
(x) None of (i) the offering, issuance and sale by the Partnership of the Units and the
application of the proceeds from the sale of the Units as described under “Use of Proceeds” in the
Pricing Disclosure Package and the Prospectus, (ii) the execution, delivery and performance of the
Underwriting Agreement by the Operating Company or (iii) the consummation of the transactions
(including the Transactions) contemplated by the Underwriting Agreement (A) conflicts or will
conflict with, or constitutes or will constitute a violation of, the articles of organization,
operating agreement or other constituent document of the Operating Company, (B) conflicts or will
conflict with, or constitutes or will constitute a breach or violation of, or a default (or an
event that, 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 filed
as an exhibit to the Registration Statement], (C) violates or will violate Ohio law
B-2-2
or federal law or (D) results or will result in the creation or imposition of any Lien upon
any property or assets of the Operating Company, which conflicts, breaches, violations, defaults or
Liens, in the case of clauses (B), (C) or (D), would reasonably be expected to have a Material
Adverse Effect or materially impair the ability of the Operating Company to consummate the
transactions (including the Transactions) contemplated under the Underwriting Agreement, it being
understood that such counsel need not express an opinion in clause (C) of this paragraph (x) with
respect to any securities or other anti-fraud law..
(xi) No permit, consent, approval, authorization or order, or registration, filing or
qualification under Ohio law, Kentucky law or federal law by any of the Operating Company, Xxxxxxxx
Resources, Oxford Kentucky or Xxxxx, is required in connection with (i) the offering, issuance or
sale by the Partnership of the Units, (ii) the application of the proceeds therefrom as described
under “Use of Proceeds” in the Pricing Disclosure Package and the Prospectus, (iii) the execution
and delivery of the Underwriting Agreement by the Operating Company and (iv) the consummation of
the transactions (including the Transactions) contemplated under the Underwriting Agreement, except
(A) such as have been obtained under the Securities Act (as to which such counsel need not express
any opinion), (B) such as may be required under the blue sky laws of any jurisdiction or the
by-laws and rules of FINRA in connection with the purchase and distribution by the Underwriters of
the Units in the manner contemplated herein and in the Pricing Disclosure Package and the
Prospectus (as to which such counsel need not express any opinion), (C) such that the failure to
obtain would not reasonably be expected to have a Material Adverse Effect or materially impair the
ability of the Partnership to consummate the transactions contemplated by this Agreement and (D)
such other that have been obtained or taken and are in full force and effect.
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon the
representations of the Partnership Parties set forth in the Underwriting Agreement and upon
certificates of officers and employees of the Oxford Entities and upon information obtained from
public officials, (B) assume that all documents submitted to it as originals are authentic, that
all copies submitted to them conform to the originals thereof, and that the signatures on all
documents examined by them are genuine, (C) state that its opinion is limited to federal laws and
the laws of the State of Ohio and the Commonwealth of Kentucky, (D) with respect to the opinions as
to the due formation, valid existence and good standing of the Operating Company, Xxxxxxxx
Resources, Oxford Kentucky and Xxxxx, such opinions are based upon certificates of good standing or
comparable certificates provided by the Secretary of State of the states listed on an annex to be
attached to such counsel’s opinion (each of which shall be dated as of a date not more than
fourteen days prior to the Closing Date and shall be provided to counsel to the Underwriters), (E)
with respect to the opinions as to the due qualification or registration as a foreign limited
liability company of the Operating Company, Xxxxxxxx Resources, Oxford Kentucky and Xxxxx, such
opinions are based upon certificates of foreign qualification or registration provided by the
Secretary of State of the states listed on an annex to be attached to such counsel’s opinion (each
of which shall be dated as of a date not more than fourteen days prior to the Closing Date and
shall be provided to counsel to the Underwriters), and (F) state that it expresses no opinion with
respect to (i) title of any of the Oxford Entities to their respective real or personal property,
(ii) any permits to own or operate any real or personal property or (iii) state or local taxes or
tax statutes to which any of the limited partners of the Partnership or any of the Oxford Entities
may be subject.
X-0-0
XXXXXXX X-0
FORM OF RELIANCE LETTER OF SQUIRE, XXXXXXX & XXXXXXX L.L.P.
Barclays Capital Inc.
Citigroup Global Markets Inc.,
As Representatives of the several
Underwriters named in the Underwriting Agreement
Citigroup Global Markets Inc.,
As Representatives of the several
Underwriters named in the Underwriting Agreement
c/o Barclays Capital Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen,
We have acted as counsel to Oxford Resource Partners, LP, a Delaware limited partnership (the
“Partnership”), Oxford Resources GP, LLC, a Delaware limited liability company and the general
partner of the Partnership (the “General Partner”), Oxford Mining Company, LLC, an Ohio limited
liability company and a wholly owned subsidiary of the Partnership (the “Operating Company”),
Oxford Mining Company-Kentucky LLC, a Kentucky limited liability company and a wholly owned
subsidiary of the Operating Company, and Xxxxx Coal Company, LLC, an Ohio limited liability company
and a wholly owned subsidiary of the Operating Company, in connection with that certain Credit
Agreement, dated [___], 2010 (the “Credit Agreement”), among the Operating Company, the banks,
financial institutions and other institutional lenders party thereto (the “Lenders”) and Citibank,
N.A., as Administrative Agent for the Lenders (“Citibank”). In connection with the Credit
Agreement, we delivered an opinion letter addressed to the Lenders and Citibank dated [___],
2010 (the “Opinion Letter”).
You hereby are authorized to accept, use and rely upon the Opinion Letter and the opinions set
forth therein. This reliance and opinion letter is provided to you pursuant to Section 7(f) of the
Underwriting Agreement, dated as of ___, 2010 (the “Underwriting Agreement”), by and among
the Partnership, the General Partner and the Operating Company, on the one hand, and Barclays
Capital Inc. and Citigroup Global Markets Inc., on the other hand. Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the Opinion Letter and, to the extent
not defined therein, shall have the meaning ascribed to such term in the Underwriting Agreement.
This reliance and opinion letter is strictly limited to the matters stated herein and no other
or more extensive opinion is intended, implied or to be inferred beyond the matters expressly
stated herein. This reliance and opinion letter is not a guaranty and should not be construed or
relied on as such.
This reliance and opinion letter is given as of the date hereof. We assume no obligation to
update or supplement this reliance and opinion letter or the Opinion Letter to reflect any facts
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or circumstances which may hereafter come to our attention or any changes in laws which may
hereafter occur.
This reliance and opinion letter is rendered solely for the benefit of the addressees hereof
in connection with the Prospectus, and this reliance and opinion letter may not be relied upon in
connection with any other matter or by any other person or entity without our express prior written
consent. This reliance and opinion letter may not be quoted or in any way published or provided to
any person or entity without our express prior written consent.
Very truly yours,
B-3-2