QUICKSILVER RESOURCES INC. 11¾% Senior Notes due 2016 Underwriting Agreement
Exhibit
1.1
EXECUTION
COPY
$600,000,000
11¾%
Senior Notes due 2016
June 18,
2009
Credit
Suisse Securities (USA) LLC
Deutsche
Bank Securities Inc.
X.X.
Xxxxxx Securities Inc.
As
Representatives of the
several
Underwriters listed
in
Schedule 1 hereto
c/o
Credit Suisse Securities (USA) LLC
Eleven
Xxxxxxx Xxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Ladies
and Gentlemen:
Quicksilver
Resources Inc., a Delaware corporation (the “Company”), proposes to issue
and sell to the several Underwriters listed in Schedule 1 hereto (the
“Underwriters”), for whom you are acting as representatives (the
“Representatives”), $600,000,000 principal amount of its 11¾% Senior Notes due
2016 (the “Securities”). The Securities will be issued pursuant to an
Indenture dated as of December 22, 2005, as supplemented by a Seventh
Supplemental Indenture (collectively, as supplemented through the Closing Date
(as defined below), the “Indenture”) between the Company and The Bank of New
York Mellon Trust Company, N.A., as successor trustee (the “Trustee”), and will
be guaranteed on an unsecured senior basis by each of the guarantors listed in
Schedule 2 hereto (the “Guarantors” and such guarantees, the
“Guarantees”).
The
Company hereby confirms its agreement with the several Underwriters concerning
the purchase and sale of the Securities, as follows:
1. Registration
Statement. The Company has prepared and filed with the
Securities and Exchange Commission (the “Commission”) under the Securities Act
of 1933, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Securities Act”), a registration statement on Form S-3 (File
No. 333-160046), including a prospectus, relating to the
Securities. Such registration statement, including the information,
if any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to
be part of the registration statement at the time of its effectiveness (“Rule
430 Information”), is referred to herein as the “Registration
Statement.” The base prospectus included in the Registration
Statement (the “Base Prospectus”), as supplemented by the preliminary prospectus
supplement dated June 17, 2009 relating to the Securities and used prior to
the filing of the Prospectus (as defined below) (the “Preliminary Prospectus
Supplement”), is hereinafter referred to as the “Preliminary
Prospectus.” The Base Prospectus, as supplemented by the prospectus
supplement relating to the Securities in the form first used (or made available
upon request of purchasers pursuant to Rule 173 under the Securities Act) in
connection with confirmation of sales of the Securities (the “Prospectus
Supplement”) is hereinafter referred to as the “Prospectus.” If the
Company has filed an abbreviated registration statement pursuant to Rule 462(b)
under the Securities Act (the “Rule 462 Registration Statement”), then any
reference herein to the term “Registration Statement” shall be deemed to include
such Rule 462 Registration Statement. Any reference in this Agreement
to the Registration Statement, any Preliminary Prospectus or the Prospectus
shall be deemed to refer to and include the documents incorporated by reference
therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the
effective date of the Registration Statement or the date of such Preliminary
Prospectus or the Prospectus, as the case may be and any reference to “amend,”
“amendment” or “supplement” with respect to the Registration Statement, any
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include
any documents filed after such date under the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Exchange Act”) that are deemed to be incorporated by
reference therein. Capitalized terms used but not defined herein
shall have the meanings given to such terms in the Registration Statement and
the Prospectus.
At or
prior to the time when sales of the Securities were first made (the “Time of
Sale”), the Company had prepared the following information (collectively, the
“Time of Sale Information”): the Preliminary Prospectus Supplement and each
“free-writing prospectus” (as defined pursuant to Rule 405 under the Securities
Act) listed on Annex B hereto.
2. Purchase of
the Securities by the Underwriters. (a) The Company
agrees to issue and sell the Securities to the several Underwriters as provided
in this Agreement, and each Underwriter, on the basis of the representations,
warranties and agreements set forth herein and subject to the conditions set
forth herein, agrees, severally and not jointly, to purchase from the Company
the respective principal amount of Securities set forth opposite such
Underwriter’s name in Schedule 1 hereto at a price equal to 94.717% of the
principal amount thereof plus accrued interest, if any, from June 25, 2009 to
the Closing Date (as defined below). The Company will not be
obligated to deliver any of the Securities except upon payment for all the
Securities to be purchased as provided herein.
(b) The
Company understands that the Underwriters intend to make a public offering of
the Securities and initially to offer the Securities on the terms set forth in
the Prospectus. The Company acknowledges and agrees that the
Underwriters may offer and sell Securities to or through any affiliate of an
Underwriter and that any such affiliate may offer and sell Securities purchased
by it to or through any Underwriter.
(c) Payment
for and delivery of the Securities will be made at the offices of Cravath,
Swaine & Xxxxx LLP, 000 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, at 10:00 a.m.,
New York City time, on June 25, 2009, or at such other time or place on the same
or such other date, not later than the fifth business day thereafter, as the
Representatives and the Company may agree upon in writing. The time
and date of such payment and delivery is referred to herein as the “Closing
Date.”
(d) Payment
for the Securities shall be made by wire transfer in immediately available funds
to the account(s) specified by the Company to the Representatives against
delivery to the nominee of The Depository Trust Company, for the account of the
Underwriters, of one or more global notes representing the Securities
(collectively, the “Global Note”), with any transfer taxes payable in connection
with the sale of the Securities duly paid by the Company. The Global
Note will be made available for inspection by the Representatives not later than
1:00 p.m., New York City time, on the business day prior to the Closing
Date.
(e) The
Company and the Guarantors acknowledge and agree that the Underwriters are
acting solely in the capacity of an arm’s length contractual counterparty to the
Company and the Guarantors with respect to the offering of Securities
contemplated hereby (including in connection with determining the terms of the
offering) and not as a financial advisor or a fiduciary to, or an agent of, the
Company, the Guarantors or any other person. Additionally, neither
Representative nor any other Underwriter is advising the Company, the Guarantors
or any other person as to any legal, tax, investment, accounting or regulatory
matters in any jurisdiction. The Company and the Guarantors shall
consult with their own advisors concerning such matters and shall be responsible
for making their own independent investigation and appraisal of the transactions
contemplated hereby, and the Underwriters shall have no responsibility or
liability to the Company or the Guarantors with respect thereto. Any
review by the Underwriters of the Company, the Guarantors the transactions
contemplated hereby or other matters relating to such transactions will be
performed solely for the benefit of the Underwriters and shall not be on behalf
of the Company or the Guarantors.
3. Representations
and Warranties of the Company and the Guarantors. The Company
and the Guarantors jointly and severally represent and warrant to each
Underwriter that:
(a) Preliminary
Prospectus. No order preventing or suspending the use of any
Preliminary Prospectus has been issued by the Commission, and each Preliminary
Prospectus, at the time of filing thereof, complied in all material respects
with the Securities Act and did not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided
that the Company and the Guarantors make no representation and warranty with
respect to any statements or omissions made in reliance upon and in conformity
with information relating to any Underwriter furnished to the Company in writing
by such Underwriter through the Representatives expressly for use in any
Preliminary Prospectus, it being understood and agreed that the only such
information is that described in Section 7(b).
(b) Time of Sale
Information. The Time of Sale Information, at the Time of Sale
did not, and at the Closing Date will not, contain any 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 the Company and the Guarantors make no representation and warranty with
respect to any statements or omissions made in reliance upon and in conformity
with information relating to any Underwriter furnished to the Company in writing
by such Underwriter through the Representatives expressly for use in such Time
of Sale Information, it being understood and agreed that the only such
information is that described in Section 7(b).
(c) Issuer Free Writing
Prospectus. Other than the Preliminary Prospectus and the
Prospectus, the Company (including its agents and representatives, other than
the Underwriters in their capacity as such) has not made, used, prepared,
authorized, approved or referred to and will not prepare, make, use, authorize,
approve or refer to any “written communication” (as defined in Rule 405 under
the Securities Act) that constitutes an offer to sell or solicitation of an
offer to buy the Securities (each such communication by the Company or its
agents and representatives (other than a communication referred to in clause (i)
below) an “Issuer Free Writing Prospectus”) other than (i) any document not
constituting a prospectus pursuant to Section 2(a)(10)(a) of the Securities
Act or Rule 134 under the Securities Act or (ii) the documents listed on Annex B
hereto and other written communications approved in writing in advance by the
Representatives. Each such Issuer Free Writing Prospectus complied in
all material respects with the Securities Act, has been or will be (within the
time periods specified in Rule 433 under the Securities Act) filed in accordance
with the Securities Act (to the extent required thereby) and, when taken
together with the Preliminary Prospectus accompanying, or delivered prior to
delivery of, such Issuer Free Writing Prospectus, did not, and at the Closing
Date will not, contain any 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 the Company and the Guarantors make no representation and warranty with
respect to any statements or omissions made in each such Issuer Free Writing
Prospectus in reliance upon and in conformity with information relating to any
Underwriter furnished to the Company in writing by such Underwriter through the
Representatives expressly for use in any Issuer Free Writing Prospectus, it
being understood and agreed that the only such information is that described in
Section 7(b).
(d) Registration
Statement and Prospectus. The Registration Statement is an
“automatic shelf registration statement” as defined under Rule 405 of the
Securities Act that has been filed with the Commission not earlier than three
years prior to the date hereof; and no notice of objection of the Commission to
the use of such registration statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act has been received by
the Company. No order suspending the effectiveness of the
Registration Statement has been issued by the Commission and no proceeding for
that purpose or pursuant to Section 8A of the Securities Act against the Company
or related to the offering has been initiated or, to the knowledge of the
Company, threatened by the Commission; as of the applicable effective date of
the Registration Statement and any amendment thereto, the Registration Statement
complied and will comply in all material respects with the Securities Act and
the Trust Indenture Act of 1939, as amended, and the rules and regulations of
the Commission thereunder (collectively, the “Trust Indenture Act”), and did not
and will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein not misleading; and as of the date of the Prospectus and any
amendment or supplement thereto and as of the Closing Date, the Prospectus will
not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided
that the Company and the Guarantors make no representation and warranty with
respect to (i) that part of the Registration Statement that constitutes the
Statement of Eligibility and Qualification (Form T-1) of the Trustee under the
Trust Indenture Act or (ii) any statements or omissions made in reliance upon
and in conformity with information relating to any Underwriter furnished to the
Company in writing by such Underwriter through the Representatives expressly for
use in the Registration Statement and the Prospectus and any amendment or
supplement thereto, it being understood and agreed that the only such
information is that described in Section 7(b).
(e) Incorporated
Documents. The documents incorporated by reference in the
Registration Statement, the Prospectus and the Time of Sale Information, when
they became effective or were filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the Securities Act or
the Exchange Act, as applicable, and none of such documents contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and any further
documents so filed and incorporated by reference in the Registration Statement,
the Prospectus or the Time of Sale Information, when such documents become
effective or are filed with the Commission, as the case may be, will conform in
all material respects to the requirements of the Act or the Exchange Act, as
applicable, and will not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.
(f) Financial
Statements. The financial statements and the related notes
thereto included or incorporated by reference in the Registration Statement, the
Time of Sale Information and the Prospectus comply in all material respects with
the applicable requirements of the Securities Act and the Exchange Act, as
applicable, and present fairly, in all material respects, the financial position
of the Company and its subsidiaries as of the dates indicated and the results of
their operations and the changes in their cash flows for the periods specified;
except as disclosed therein, such financial statements have been prepared in
conformity with generally accepted accounting principles applied on a consistent
basis throughout the periods covered thereby, and the supporting schedules
included or incorporated by reference in the Registration Statement present
fairly, in all material respects, the information required to be stated therein;
the assumptions used in preparing the pro forma financial statements included in
each of the Registration Statement, the Time of Sale Information and the
Prospectus provide a reasonable basis for presenting the significant effects
directly attributable to the transactions or events described therein, the
related pro forma adjustments give appropriate effect to those assumptions, and
the pro forma columns therein reflect the proper application of those
adjustments to the corresponding historical financial statement amounts; and the
other financial information included or incorporated by reference in the
Registration Statement, the Time of Sale Information and the Prospectus has been
derived from the accounting records of the Company and its subsidiaries and
presents fairly, in all material respects, the information shown
thereby.
(g) No Material Adverse
Change. Since the date of the most recent financial statements
of the Company included or incorporated by reference in the Registration
Statement, the Time of Sale Information and the Prospectus, (i) there has not
been any change in the capital stock or long-term debt of the Company or any of
its subsidiaries listed on Schedule 3 hereto (the “Subsidiaries”), or any
dividend or distribution of any kind declared, set aside for payment, paid or
made by the Company on any class of capital stock, or any material adverse
change, or any development involving a prospective material adverse change, in
or affecting the business, properties, management, financial position, results
of operations or prospects of the Company and its subsidiaries taken as a whole;
(ii) neither the Company nor any of its Subsidiaries has entered into any
transaction or agreement that would reasonably be expected to have a Material
Adverse Effect (as defined below); and (iii) neither the Company nor any of its
Subsidiaries has sustained any material loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor disturbance or dispute or any action, order or
decree of any court or arbitrator or governmental or regulatory authority,
except in each case as otherwise disclosed in the Registration Statement, the
Time of Sale Information and the Prospectus.
(h) Organization and
Good Standing. The Company and each of the Subsidiaries have
been duly organized and are validly existing and, where applicable to entities
of the relevant type, in good standing under the laws of their respective
jurisdictions of organization, are duly qualified to do business and, where
applicable to entities of the relevant type, are in good standing in each
jurisdiction in which their respective ownership or lease of property or the
conduct of their respective businesses requires such qualification, and have all
power and authority necessary to own or hold their respective properties and to
conduct the businesses in which they are engaged, except where the failure to be
so qualified, in good standing, or have such power or authority would not,
individually or in the aggregate, have a material adverse effect on the
business, properties, management, financial position, results of operations or
prospects of the Company and its subsidiaries taken as a whole or on the
performance by the Company and the Guarantors of their obligations under the
Securities and the Guarantees (a “Material Adverse Effect”). The
subsidiaries listed in Exhibit 21.1 to the Company’s Annual Report on Form 10-K
for the year ended December 31, 2008 are the only significant subsidiaries of
the Company.
(i) Capitalization. The
Company has an authorized capitalization as set forth in the Registration
Statement, the Time of Sale Information and the Prospectus under the heading
“Capitalization” (other than subsequent issuances, if any, of capital stock of
the Company pursuant to conversion of its 1.875% Convertible Subordinated
Debentures due 2024, pursuant to employee benefit plans described in the
Prospectus or upon issuance of outstanding options described in the Prospectus)
and all the outstanding shares of capital stock or other equity interests of
each Subsidiary of the Company have been duly and validly authorized and issued,
and, except for general partner and limited liability company interests, are
fully paid and non-assessable, and are owned directly or indirectly by the
Company, free and clear of any lien, charge, encumbrance, security interest,
restriction on voting or transfer or any other claim of any third party other
than those securing the Obligations (as defined in the Intercreditor Agreement
dated as of August 8, 2008, among the Company, the Guarantors, JPMorgan Chase
Bank, N.A., as first lien collateral agent, and Credit Suisse, as collateral
agent (as the same may be amended, supplemented or otherwise modified from time
to time prior to the date hereof, the “Intercreditor
Agreement”)).
(j) Due
Authorization. The Company and each of the Guarantors have the
requisite corporate or partnership power and authority to execute and deliver
this Agreement, the Securities, and the Indenture (including each Guarantee set
forth therein) (collectively, the “Transaction Documents”) and to perform their
obligations hereunder and thereunder; and all corporate or partnership action
required to be taken for the due and proper authorization, execution and
delivery of each of the Transaction Documents and the consummation of the
transactions contemplated thereby has been duly and validly
taken.
(k) The
Indenture. The Indenture has been duly authorized by the
Company and each of the Guarantors and, upon effectiveness of the Registration
Statement, was or will have been duly qualified under the Trust Indenture Act
and, when duly executed and delivered in accordance with its terms by each of
the parties thereto, will constitute a valid and legally binding agreement of
the Company and each of the Guarantors enforceable against each of them in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability
(collectively, the “Enforceability Exceptions”).
(l) The Securities and
the Guarantees. The Securities have been duly authorized by
the Company and, when duly executed, authenticated, issued and delivered as
provided in the Indenture and paid for as provided herein, will be duly and
validly issued and outstanding and will constitute valid and legally binding
obligations of the Company enforceable against the Company in accordance with
their terms, subject to the Enforceability Exceptions, and will be entitled to
the benefits of the Indenture; and the Guarantees have been duly authorized by
each of the Guarantors and, when the Securities have been duly executed,
authenticated, issued and delivered as provided in the Indenture and paid for as
provided herein, will be valid and legally binding obligations of each of the
Guarantors, enforceable against each of the Guarantors in accordance with their
terms, subject to the Enforceability Exceptions, and will be entitled to the
benefits of the Indenture.
(m) Underwriting
Agreement. This Agreement has been duly authorized, executed
and delivered by the Company and each of the
Guarantors.
(n) Descriptions of the
Transaction Documents. Each Transaction Document conforms in
all material respects to the description thereof contained in the Registration
Statement, the Time of Sale Information and the
Prospectus.
(o) No Violation or
Default. Neither the Company nor any of its Subsidiaries is
(i) in violation of its charter or by-laws or similar organizational documents;
(ii) in default, and no event has occurred that, with notice or lapse of time or
both, would constitute such a default, in the due performance or observance of
any term, covenant or condition contained in any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which the Company or
any of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound or to which any of the property or assets of the Company
or any of its Subsidiaries is subject; or (iii) in violation of any law or
statute or any judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority, except, in the case of clauses (ii) and
(iii) above, for any such default or violation that would not, individually or
in the aggregate, have a Material Adverse Effect.
(p) No
Conflicts. The execution, delivery and performance by the
Company and each of the Guarantors of the Transaction Documents to which it is a
party, the issuance and sale of the Securities, the issuance of the Guarantees
and compliance by the Company and each of the Guarantors with its obligations
thereunder and the consummation of the transactions contemplated by the
Transaction Documents will not (i) conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under,
or result in the creation or imposition of any lien, charge or encumbrance upon
any property or assets of the Company or any of its Subsidiaries pursuant to,
any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound or to which any of the
property or assets of the Company or any of its Subsidiaries is subject,
(ii) result in any violation of the provisions of the charter or by-laws or
similar organizational documents of the Company or any of its Subsidiaries or
(iii) result in the violation of any law or statute or any judgment, order,
rule or regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case of clauses (i) and (iii) above, for any such
conflict, breach, violation, default, lien, charge or encumbrance that would
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(q) No Consents
Required. No consent, approval, authorization, order,
registration or qualification of or with any court or arbitrator or governmental
or regulatory authority is required for the execution, delivery and performance
by the Company or any of the Guarantors of the Transaction Documents, the
issuance and sale of the Securities, the issuance of the Guarantees and
compliance by the Company and each of the Guarantors with the terms of the
Transaction Documents to which it is a party or the consummation of the
transactions contemplated by the Transaction Documents, except for the
registration of the Securities (including the Guarantees) under the Securities
Act, the qualification of the Indenture under the Trust Indenture Act and such
consents, approvals, authorizations, orders and registrations or qualifications
as may be required under applicable state securities laws in connection with the
purchase and distribution of the Securities (including the Guarantees) by the
Underwriters.
(r) Legal
Proceedings. Except as disclosed in the Registration
Statement, the Time of Sale Information and the Prospectus, there are no legal,
governmental or regulatory investigations, actions, suits or proceedings pending
to which the Company or any of its Subsidiaries is or may be a party or to which
any property of the Company or any of its Subsidiaries is or may be the subject
that, individually or in the aggregate, if determined adversely to the Company
or any of its Subsidiaries, would reasonably be expected to have a Material
Adverse Effect; to the knowledge of the Company and the Guarantors no such
investigations, actions, suits or proceedings are threatened or contemplated and
(i) there are no current or pending legal, governmental or regulatory
actions, suits or proceedings that are required under the Securities Act to be
described in the Registration Statement or the Prospectus that are not so
described in the Registration Statement, the Time of Sale Information and the
Prospectus and (ii) there are no statutes, regulations or contracts or
other documents that are required under the Securities Act to be filed as
exhibits to the Registration Statement or described in the Registration
Statement or the Prospectus that are not so filed as exhibits to the
Registration Statement or described in the Registration Statement, the Time of
Sale Information and the Prospectus.
(s) Independent
Accountants. Deloitte & Touche LLP, who have certified
certain financial statements of the Company and its subsidiaries, are an
independent registered public accounting firm with respect to the Company and
its subsidiaries within the applicable rules and regulations adopted by the
Commission and the Public Company Accounting Oversight Board (United States) and
as required by the Securities Act.
(t) Title to Real and
Personal Property. Except as disclosed in the Registration
Statement, the Time of Sale Information and the Prospectus, the Company and its
Subsidiaries have good and valid title to, or have valid rights to lease or
otherwise use, all items of real and personal property that are material to the
business of the Company and its Subsidiaries taken as a whole, in each case free
and clear of all liens, encumbrances, claims and defects and imperfections of
title except, in each case, those that (i) do not materially interfere with
the use made and proposed to be made of such property by the Company and its
Subsidiaries (ii) secure the Obligations (as defined in the Intercreditor
Agreement) or (iii) would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.
(u) Title to
Intellectual Property. (i) The Company and its
Subsidiaries own or possess adequate rights to use all material patents, patent
applications, trademarks, service marks, trade names, trademark registrations,
service xxxx registrations, copyrights, licenses and know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) necessary for the conduct of their
respective businesses taken as a whole; and (ii) the conduct of their
businesses will not conflict in any material respect with any such rights of
others, and the Company and its Subsidiaries have not received any notice of any
claim of infringement or conflict with any such rights of others, except in the
case of each of clauses (i) and (ii) as would not reasonably expected to have,
individually or in the aggregate, a Material Adverse
Effect.
(v) No Undisclosed
Relationships. No relationship, direct or indirect, exists
between or among the Company or any of its subsidiaries, on the one hand, and
the directors, officers, stockholders, customers or suppliers of the Company or
any of its subsidiaries, on the other, that is required by the Securities Act to
be described in the Registration Statement or the Prospectus and that is not so
described in such documents and in the Time of Sale
Information.
(w) Investment Company
Act. Each of the Company and its Subsidiaries is not and,
after giving effect to the offering and sale of the Securities and the
application of the proceeds thereof as described in the Registration Statement,
the Time of Sale Information and the Prospectus, will not be an “investment
company” or an entity “controlled” by an “investment company” within the meaning
of the Investment Company Act of 1940, as amended, and the rules and regulations
of the Commission thereunder (collectively, the “Investment Company
Act”).
(x) Taxes. The
Company and its Subsidiaries have paid all Federal, state, local and foreign
taxes and filed all tax returns required to be paid or filed through the date
hereof except where the failure to so pay or file would not, individually or in
the aggregate, have a Material Adverse Effect; and except as otherwise disclosed
in the Registration Statement, the Time of Sale Information and the Prospectus,
there is no material tax deficiency that has been, or to the Company’s knowledge
would reasonably be expected to be, asserted against the Company or any of its
Subsidiaries or any of their respective properties or
assets.
(y) Licenses and
Permits. The Company and its Subsidiaries possess all
licenses, certificates, permits and other authorizations issued by, and have
made all declarations and filings with, the appropriate Federal, state, local or
foreign governmental or regulatory authorities that are necessary for the
ownership or lease of their respective properties or the conduct of their
respective businesses as described in the Registration Statement, the Time of
Sale Information and the Prospectus, except where the failure to possess or make
the same would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect; and except as described in the
Registration Statement, the Time of Sale Information and the Prospectus, neither
the Company nor any of its Subsidiaries has received notice of any revocation or
modification of any such license, certificate, permit or authorization or has
any reason to believe that any such license, certificate, permit or
authorization will not be renewed in the ordinary course except where such
revocation, modification or non-renewal would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse
Effect.
(z) No Labor
Disputes. No labor disturbance by or dispute with employees of
the Company or any of its Subsidiaries exists or, to the knowledge of the
Company and the Guarantors, is contemplated or threatened and to the knowledge
of the Company and the Guarantors there is no existing or imminent labor
disturbance by, or dispute with, the employees of any of its or its
Subsidiaries’ principal suppliers, contractors or customers, except as would not
have a Material Adverse Effect.
(aa) Compliance With
Environmental Laws. (i) The Company and its Subsidiaries
(x) are in compliance with any and all applicable Federal, state, local and
foreign laws, rules, regulations, requirements, decisions and orders relating to
the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (collectively, “Environmental
Laws”); (y) have received and are in compliance with all permits, licenses,
certificates or other authorizations or approvals required of them under
applicable Environmental Laws to conduct their respective businesses; and
(z) have not received notice of any actual or potential liability for the
investigation or remediation of any disposal or release of, or human exposure
to, hazardous or toxic substances or wastes, pollutants or contaminants
(collectively, “Hazardous Materials”) and (ii) there are no costs or
liabilities associated with Environmental Laws of or relating to the Company or
its Subsidiaries for any such failure to comply, or failure to receive required
permits, licenses or approvals, or cost or liability related to Hazardous
Materials, except in the case of each of clauses (i) and (ii) above, for any
such failure to comply, failure to receive permits, licenses, certificates,
authorizations or approvals, liabilities or costs, as would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse
Effect.
(bb) Disclosure
Controls. Except as disclosed in the Registration Statement,
the Time of Sale Information and the Prospectus, the Company and its
Subsidiaries maintain an effective system of “disclosure controls and
procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is designed
to ensure that information required to be disclosed by the Company in reports
that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the Commission’s
rules and forms, including controls and procedures designed to provide
reasonable assurance that such information is accumulated and communicated to
the Company’s management as appropriate to allow timely decisions regarding
required disclosure. The Company and its Subsidiaries have carried
out evaluations of the effectiveness of their disclosure controls and procedures
as required by Rule 13a-15 of the Exchange Act.
(cc) Accounting
Controls. Except as disclosed in the Registration Statement,
the Time of Sale Information and the Prospectus, the Company and its
Subsidiaries maintain systems of “internal control over financial reporting” (as
defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements
of the Exchange Act and have been designed by, or under the supervision of,
their respective principal executive and principal financial officers, or
persons performing similar functions, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles, including, but not limited to internal accounting
controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability; (iii) access to assets is permitted
only in accordance with management’s general or specific authorization; and (iv)
the recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. Except as disclosed in the Registration Statement, the
Time of Sale Information and the Prospectus, there are no material weaknesses in
the Company’s internal controls.
(dd) Insurance. The
Company and its Subsidiaries have insurance covering their respective
properties, operations, personnel and businesses, which insurance is in amounts
and insures against such losses and risks as are customary in the industry to
protect the Company and its Subsidiaries and their respective businesses; and
neither the Company nor any of its Subsidiaries has (i) received notice
from any insurer or agent of such insurer that capital improvements or other
expenditures are required or necessary to be made in order to continue such
insurance or (ii) any reason to believe that it will not be able to renew
its existing insurance coverage as and when such coverage expires or to obtain
replacement insurance adequate for the conduct of its business and the value of
their respective properties at a cost that would not reasonably be expected to
have a Material Adverse Effect.
(ee) No Unlawful
Payments. Neither the Company nor any of its Subsidiaries nor,
to the knowledge of the Company and the Guarantors, any director, officer,
agent, employee or other person associated with or acting on behalf of the
Company or any of its Subsidiaries has (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to
political activity; (ii) made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds;
(iii) violated or is in violation of any provision of the Foreign Corrupt
Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment.
(ff) Compliance with
Money Laundering Laws. The operations of the Company and its
Subsidiaries are and have been conducted at all times in compliance with
applicable financial recordkeeping and reporting requirements of the Currency
and Foreign Transactions Reporting Act of 1970, as amended, the money laundering
statutes of all jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or
enforced by any governmental agency (collectively, the “Money Laundering Laws”)
and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its
Subsidiaries with respect to the Money Laundering Laws is pending or, to the
knowledge of the Company and the Guarantors,
threatened.
(gg) Compliance with
OFAC. None of the Company, any of its Subsidiaries or, to the
knowledge of the Company and the Guarantors, any director, officer, agent,
employee or Affiliate of the Company or any of its Subsidiaries is currently
subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Department of the Treasury (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the offering of the Securities
hereunder, 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.
(hh) Solvency. On
and immediately after the Closing Date, the Company (after giving effect to the
issuance of the Securities and the other transactions related thereto as
described in the Registration Statement, the Time of Sale Information and the
Prospectus) will be Solvent. As used in this paragraph, the term
“Solvent” means, with respect to a particular date, that on such date
(i) the present fair market value (or present fair saleable value) of the
assets of the Company is not less than the total amount required to pay the
liabilities of the Company on its total existing debts and liabilities
(including contingent liabilities) as they become absolute and matured;
(ii) the Company is able to realize upon its assets and pay its debts and
other liabilities, contingent obligations and commitments as they mature and
become due in the normal course of business; (iii) assuming consummation of
the issuance of the Securities as contemplated by this Agreement, the
Registration Statement, the Time of Sale Information and the Prospectus, the
Company is not incurring debts or liabilities beyond its ability to pay as such
debts and liabilities mature; (iv) the Company is not engaged in any
business or transaction, and does not propose to engage in any business or
transaction, for which its property would constitute unreasonably small capital
after giving due consideration to the prevailing practice in the industry in
which the Company is engaged; and (v) the Company is not a defendant in any
civil action that would result in a judgment that the Company is or would become
unable to satisfy.
(ii) No Restrictions on
Subsidiaries. Except as provided in (1) the Amended and
Restated Credit Agreement, dated as of February 9, 2007, among the Company,
JPMorgan Chase Bank, N.A. (successor by merger to Bank One, NA), Global
Administrative Agent, and the other agents and financial institutions from time
to time party thereto, as amended; (2) the Amended and Restated Credit
Agreement, dated as of February 9, 2007, among Quicksilver Resources Canada
Inc., as Borrower, JPMorgan Chase Bank, N.A., Toronto Branch (successor by
merger to Xxxx Xxx, XX, Xxxxxx Branch), Canadian Administrative Agent, JPMorgan
Chase Bank, N.A. (successor by merger to Bank One, NA), Global Administrative
Agent, and the financial institutions from time to time party thereto, as
amended; and (3) each such agreement as the same may be amended,
supplemented or otherwise modified from time to time prior to the date hereof,
no Subsidiary of the Company is currently prohibited, directly or indirectly,
under any agreement or other instrument to which it is a party or is subject,
from paying any dividends to the Company, from making any other distribution on
such Subsidiary’s capital stock, from repaying to the Company any loans or
advances to such Subsidiary from the Company or from transferring any of such
Subsidiary’s properties or assets to the Company or any other Subsidiary of the
Company.
(jj) No Broker’s
Fees. Neither the Company nor any of its subsidiaries is a
party to any contract, agreement or understanding with any person (other than
this Agreement) that would give rise to a valid claim against the Company or any
of its subsidiaries or any Underwriter for a brokerage commission, finder’s fee
or like payment in connection with the offering and sale of the
Securities.
(kk) No Registration
Rights. No person has the right to require the Company or any
of its subsidiaries to register any securities for sale under the Securities Act
by reason of the filing of the Registration Statement with the Commission or the
issuance and sale of the Securities.
(ll) No
Stabilization. The Company has not taken, directly or
indirectly, any action designed to or that could reasonably be expected to cause
or result in any stabilization or manipulation of the price of the
Securities.
(mm) Margin
Rules. Neither the issuance, sale and delivery of the
Securities nor the application of the proceeds thereof by the Company as
described in the Registration Statement, the Time of Sale Information and the
Prospectus will violate Regulation T, U or X of the Board of Governors of the
Federal Reserve System or any other regulation of such Board of
Governors.
(nn) Forward-Looking
Statements. No material forward-looking statement (within the
meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) contained or incorporated by reference in the Registration Statement, the
Time of Sale Information or the Prospectus has been made or reaffirmed without a
reasonable basis or has been disclosed other than in good
faith.
(oo) Statistical and
Market Data. Nothing has come to the attention of the Company
that has caused the Company to believe that the statistical and market-related
data included or incorporated by reference in the Registration Statement, the
Time of Sale Information and the Prospectus is not based on or derived from
sources that are reliable and accurate in all material
respects.
(pp) Xxxxxxxx-Xxxxx
Act. There is and has been no failure on the part of the
Company or any of the Company’s directors or officers, in their capacities as
such, to comply in all material respects with the applicable provisions of the
Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated in
connection therewith (the “Xxxxxxxx-Xxxxx Act”), including Section 402 related
to loans and Sections 302 and 906 related to
certifications.
(qq) Status under the
Securities Act. The Company is not an ineligible issuer and is
a well-known seasoned issuer, in each case as defined under the Securities Act,
in each case at the times specified in the Securities Act in connection with the
offering of the Securities. The Company has paid the registration
fees for this offering required by Rule 457 under the Securities Act or will pay
such fees within the time period required by Rule 456(b)(1) under the Securities
Act (without giving effect to the proviso therein) and in any event prior to the
Closing Date and otherwise in accordance with Rules 456(b) and 457 under the
Securities Act.
(rr) Reserve Report
Data. The oil and gas reserve estimates of the Company and its
subsidiaries for the fiscal years ended December 31, 2008, 2007 and 2006
contained in the Preliminary Prospectus and the Prospectus are derived from
reports that have been prepared by the petroleum consulting firms as set forth
therein, such reserve estimates fairly reflect, in all material respects, the
estimated oil and gas reserves of the Company and its subsidiaries at the dates
indicated therein and are in accordance, in all material respects, with the
Commission guidelines applicable thereto applied on a consistent basis
throughout the periods involved.
(ss) Independent Reserve
Engineering Firms. Each of XxXxxxx Petroleum Consultants, Ltd.
and the Data & Consulting Services Division of Schlumberger Technology
Corporation have represented to the Company that they are, and the Company
believes each of them to be, independent reserve engineers with respect to the
Company and its subsidiaries and for the periods set forth in the Preliminary
Prospectus and the Prospectus.
(tt) PFIC
Status. Neither the Company nor any Guarantor was a “passive
foreign investment company (“PFIC”) as defined in Section 1297 of the United
States Internal Revenue Code of 1986, as amended and for its most recently
completed taxable year and, based on the Company’s and each Guarantor’s current
and projected income, assets and activities, neither the Company nor any
Guarantor expects to be classified as a PFIC for any subsequent taxable
year.
4. Further
Agreements of the Company and the Guarantors. The Company and
each of the Guarantors jointly and severally covenant and agree with each
Underwriter that:
(a) Required
Filings. The Company will file the final Prospectus with the
Commission within the time periods specified by Rule 424(b) and Rule 430A, 430B
or 430C under the Securities Act, will file any Issuer Free Writing Prospectus
to the extent required by Rule 433 under the Securities Act; and will file
promptly all reports and any definitive proxy or information statements required
to be filed by the Company with the Commission pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and for
so long as the delivery of a prospectus is required in connection with the
offering or sale of the Securities; and the Company will furnish copies of the
Prospectus and each Issuer Free Writing Prospectus (to the extent not previously
delivered) to the Underwriters in New York City prior to 10:00 a.m., New York
City time, on the business day next succeeding the date of this Agreement in
such quantities as the Representatives may reasonably
request.
(b) Delivery of
Copies. The Company will deliver, without charge, to each
Underwriter (i) a conformed copy of the Registration Statement as originally
filed and each amendment thereto, in each case including all exhibits and
consents filed therewith and (ii) during the Prospectus Delivery Period (as
defined below), as many copies of the Prospectus (including all amendments and
supplements thereto and documents incorporated by reference therein) and each
Issuer Free Writing Prospectus as the Representatives may reasonably
request. As used herein, the term “Prospectus Delivery Period” means
such period of time after the first date of the public offering of the
Securities as in the opinion of counsel for the Underwriters a prospectus
relating to the Securities is required by law to be delivered (or required to be
delivered but for Rule 172 under the Securities Act) in connection with sales of
the Securities by any Underwriter or dealer.
(c) Amendments or
Supplements; Issuer Free Writing Prospectuses. Before
preparing, using, authorizing, approving, referring to or filing any Issuer Free
Writing Prospectus, and before filing any amendment or supplement to the
Registration Statement or the Prospectus, the Company will furnish to the
Representatives and counsel for the Underwriters a copy of the proposed Issuer
Free Writing Prospectus, amendment or supplement for review and will not
prepare, use, authorize, approve, refer to or file any such Issuer Free Writing
Prospectus or file any such proposed amendment or supplement to which the
Representatives reasonably object.
(d) Notice to the
Representatives. The Company will advise the Representatives
promptly, and confirm such advice in writing, (i) when the Registration
Statement has become effective; (ii) when any amendment to the Registration
Statement has been filed or becomes effective; (iii) when any supplement to
the Prospectus or any amendment to the Prospectus or any Issuer Free Writing
Prospectus has been filed; (iv) of any request by the Commission for any
amendment to the Registration Statement or any amendment or supplement to the
Prospectus or the receipt of any comments from the Commission relating to the
Registration Statement or any other request by the Commission for any additional
information; (v) of the issuance by the Commission of any order suspending
the effectiveness of the Registration Statement or preventing or suspending the
use of any Preliminary Prospectus or the Prospectus or the initiation or
threatening of any proceeding for that purpose or pursuant to Section 8A of the
Securities Act; (vi) of the occurrence of any event within the Prospectus
Delivery Period as a result of which the Prospectus, the Time of Sale
Information or any Issuer Free Writing Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances existing when the
Prospectus, the Time of Sale Information or any such Issuer Free Writing
Prospectus is required to be delivered to a purchaser, not misleading; and
(vii) of the receipt by the Company of any notice of objection of the
Commission to the use of the Registration Statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Securities Act; and
(viii) of the receipt by the Company of any notice with respect to any
suspension of the qualification of the Securities for offer and sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; and the Company will use its reasonable best efforts to prevent the
issuance of any such order suspending the effectiveness of the Registration
Statement, preventing or suspending the use of any Preliminary Prospectus or the
Prospectus or suspending any such qualification of the Securities and, if any
such order is issued, will use its reasonable best efforts obtain as soon as
possible the withdrawal thereof.
(e) Ongoing
Compliance. (i) If during the Prospectus Delivery Period
(A) any event shall occur or condition shall exist as a result of which the
Prospectus as then amended or supplemented would include any untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the
circumstances existing when the Prospectus is required to be delivered (or
required to be delivered but for Rule 172 under the Securities Act) to a
purchaser, not misleading or (B) it is necessary to amend or supplement the
Prospectus to comply with law, the Company will immediately notify the
Underwriters thereof and forthwith prepare and, subject to paragraph (c) above,
file with the Commission and furnish to the Underwriters and to such dealers as
the Representatives may designate, such amendments or supplements to the
Prospectus as may be necessary so that the statements in the Prospectus as so
amended or supplemented will not, in the light of the circumstances existing
when the Prospectus is delivered to a purchaser, be misleading or so that the
Prospectus will comply with law and (ii) if at any time prior to the
Closing Date (A) any event shall occur or condition shall exist as a result
of which the Time of Sale Information as then amended or supplemented would
include any 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 (B) it is
necessary to amend or supplement the Time of Sale Information to comply with
law, the Company will immediately notify the Underwriters thereof and forthwith
prepare and, subject to paragraph (c) above, file with the Commission (to the
extent required) and furnish to the Underwriters and to such dealers as the
Representatives may designate, such amendments or supplements to the Time of
Sale Information as may be necessary so that the statements in the Time of Sale
Information as so amended or supplemented will not, in the light of the
circumstances under which they were made, be misleading or so that the Time of
Sale Information will comply with law.
(f) Blue Sky
Compliance. The Company will qualify the Securities for offer
and sale under the securities or Blue Sky laws of such jurisdictions as the
Representatives shall reasonably request and will continue such qualifications
in effect so long as required for distribution of the Securities; provided
that neither the Company nor any Guarantor shall be required to (i) qualify
as a foreign corporation or other entity or as a dealer in securities in any
such jurisdiction where it would not otherwise be required to so qualify,
(ii) file any general consent to service of process in any such
jurisdiction or (iii) subject itself to taxation in any such jurisdiction
if it is not otherwise so subject.
(g) Earning
Statement. The Company will make generally available to its
security holders and the Representatives as soon as practicable an earning
statement that satisfies the provisions of Section 11(a) of the Securities Act
and Rule 158 of the Commission promulgated thereunder covering a period of at
least twelve months beginning with the first fiscal quarter of the Company
occurring after the “effective date” (as defined in Rule 158) of the
Registration Statement; provided,
however,
that this Section 4(g) shall not be construed to require the Company to file any
report referred to in Rule 158 prior to the time at which such report is
otherwise due.
(h) Clear
Market. During the period from the date hereof through and
including the business day following the Closing Date, the Company and each of
the Guarantors will not, without the prior written consent of the
Representatives, offer, sell, contract to sell or otherwise dispose of any debt
securities issued or guaranteed by the Company or any of the Guarantors and
having a stated maturity of more than one year.
(i) Use of
Proceeds. The Company will apply the net proceeds from the
sale of the Securities as described in the Registration Statement, the Time of
Sale Information and the Prospectus under the heading “Use of
Proceeds”.
(j) No
Stabilization. The Company and each of the Guarantors will not
take, directly or indirectly, any action designed to or that could reasonably be
expected to cause or result in any stabilization or manipulation of the price of
the Securities.
(k) Record
Retention. The Company will, pursuant to reasonable procedures
developed in good faith, retain copies of each Issuer Free Writing Prospectus
that is not filed with the Commission in accordance with Rule 433 under the
Securities Act.
5. Certain
Agreements of the Underwriters. Each Underwriter hereby
represents and agrees that:
(a) It has
not and will not use, authorize use of, refer to, or participate in the planning
for use of, any “free writing prospectus,” as defined in Rule 405 under the
Securities Act (which term includes use of any written information furnished to
the Commission by the Company and not incorporated by reference into the
Registration Statement and any press release issued by the Company) other than
(i) a free writing prospectus that would not trigger, solely as a result of
the use of such free writing prospectus by such Underwriter, an obligation to
file such free writing prospectus with the Commission pursuant to Rule 433,
(ii) any Issuer Free Writing Prospectus listed on Annex B or prepared
pursuant to Section 3(c) or Section 4(c) above or (iii) any free writing
prospectus prepared by such underwriter and approved by the Company in advance
in writing (each such free writing prospectus referred to in clauses (i) or
(iii), an “Underwriter Free Writing Prospectus”).
(b) It
has not and will not distribute any Underwriter Free Writing Prospectus referred
to in clause (a)(i) in a manner reasonably designed to lead to its broad
unrestricted dissemination.
(c) It has
not and will not, without the prior written consent of the Company, use any free
writing prospectus that contains the preliminary or final terms of the
Securities unless such terms have previously been included in a free writing
prospectus filed with the Commission; provided that
Underwriters may use a preliminary or final term sheet substantially in the form
of Annex C hereto without the consent of the Company.
(d) It will,
pursuant to reasonable procedures developed in good faith, retain copies of each
free writing prospectus used or referred to by it, in accordance with Rule 433
under the Securities Act.
(e) It is not
subject to any pending proceeding under Section 8A of the Securities Act with
respect to the offering of the Securities (and will promptly notify the Company
if any such proceeding against it is initiated during the Prospectus Delivery
Period).
6. Conditions
of Underwriters’ Obligations. The obligation of each
Underwriter to purchase Securities on the Closing Date as provided herein is
subject to the performance by the Company and each of the Guarantors of their
respective covenants and other obligations hereunder and to the following
additional conditions:
(a) Registration
Compliance; No Stop Order. No order suspending the
effectiveness of the Registration Statement shall be in effect, and no
proceeding for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section
8A under the Securities Act shall be pending before or threatened by the
Commission; the Prospectus and each Issuer Free Writing Prospectus shall have
been timely filed with the Commission under the Securities Act (in the case of a
Issuer Free Writing Prospectus, to the extent required by Rule 433 under the
Securities Act) and in accordance with Section 4(a) hereof; and all requests by
the Commission for additional information shall have been complied with to the
reasonable satisfaction of the Representatives.
(b) Representations and
Warranties. The representations and warranties of the Company
and the Guarantors contained herein shall be true and correct on the date hereof
and on and as of the Closing Date; and the statements of the Company, the
Guarantors and their respective officers made in any certificates delivered
pursuant to this Agreement shall be true and correct on and as of the Closing
Date.
(c) No
Downgrade. Subsequent to the earlier of the Time of Sale and
the execution and delivery of this Agreement, (i) no downgrading shall have
occurred in the rating accorded the Securities or any other debt securities or
preferred stock of or guaranteed by the Company or any of its subsidiaries by
any “nationally recognized statistical rating organization,” as such term is
defined by the Commission for purposes of Rule 436(g)(2) under the Securities
Act and (ii) no such organization shall have publicly announced that it has
under surveillance or review, or has changed its outlook with respect to, its
rating of the Securities or of any other debt securities or preferred stock of
or guaranteed by the Company or any of its Subsidiaries (other than an
announcement with positive implications of a possible
upgrading).
(d) No Material Adverse
Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred any change, or any development or event
involving a prospective change, in the condition (financial or otherwise),
results of operations, business, properties or prospects of the Company and its
Subsidiaries taken as a whole which, in the judgment of the Representatives, is
material and adverse and makes it impractical or inadvisable to market the
Securities.
(e) Officer’s
Certificate. The Representatives shall have received on and as
of the Closing Date a certificate of an executive officer of the Company and of
each Guarantor who has specific knowledge of the Company’s or such Guarantor’s
financial matters and is satisfactory to the Representatives (i) confirming
that such officer has carefully reviewed the Registration Statement, the Time of
Sale Information and the Prospectus and, to the knowledge of such officer, the
representations set forth in Sections 3(b) or 3(d) hereof are true and correct,
(ii) confirming that the other representations and warranties of the
Company and the Guarantors in this Agreement are true and correct and that the
Company and the Guarantors have complied with all agreements and satisfied all
conditions on their part to be performed or satisfied hereunder at or prior to
the Closing Date and (iii) to the effect set forth in paragraphs (a), (c) and
(d) above.
(f) Chief Financial
Officer’s Certificate. On the date of this Agreement and on
the Closing Date, the Representatives shall have received certificates of the
chief financial officer of the Company, in form and substance reasonably
satisfactory to the Representatives, with respect to certain pro forma financial
statements and financial information included in the Registration Statement, the
Time of Sale Information and the Prospectus.
(g) Comfort
Letters. On the date of this Agreement and on the Closing
Date, Deloitte & Touche LLP shall have furnished to the Representatives, at
the request of the Company, letters, dated the respective dates of delivery
thereof and addressed to the Underwriters, in form and substance reasonably
satisfactory to the Representatives, containing statements and information of
the type customarily included in accountants’ “comfort letters” to underwriters
with respect to the financial statements and certain financial information
contained or incorporated by reference in the Registration Statement, the Time
of Sale Information and the Prospectus; provided
that the letter delivered on the Closing Date shall use a “cut-off” date no more
than three business days prior to the Closing Date.
(h) Comfort
Letters. On the date of this Agreement and on the Closing
Date, KPMG LLP shall have furnished to the Representatives, at the request of
the Company, letters, dated the respective dates of delivery thereof and
addressed to the Underwriters, in form and substance reasonably satisfactory to
the Representatives, containing statements and information of the type
customarily included in accountants’ “comfort letters” to underwriters with
respect to the financial statements and certain financial information contained
or incorporated by reference in the Registration Statement, the Time of Sale
Information and the Prospectus; provided
that the letter delivered on the Closing Date shall use a “cut-off” date no more
than three business days prior to the Closing Date.
(i) Opinion of Counsel
for the Company and the Guarantors. The Representatives, at
the request of the Company and the Guarantors, shall have received the written
opinion, dated the Closing Date and addressed to the Underwriters, of
(i) Xxxxx Xxxx & Xxxxxxxx, counsel for the Company and the Guarantors
in the form set forth in Annex A-1 hereto; (ii) Fulbright & Xxxxxxxx
L.L.P., counsel for the Company and the Guarantors in the form set forth in
Annex A-2 hereto; and (iii) the General Counsel of the Company in the form
set forth in Annex A-3 hereto.
(j) Opinion of Counsel
for the Underwriters. The Representatives shall have received
on and as of the Closing Date an opinion of Cravath, Swaine & Xxxxx LLP,
counsel for the Underwriters, with respect to such matters as the
Representatives may reasonably request, and such counsel shall have received
such documents and information as they may reasonably request to enable them to
pass upon such matters.
(k) No Legal Impediment
to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any
Federal, state or foreign governmental or regulatory authority that would, as of
the Closing Date, prevent the issuance or sale of the Securities or the issuance
of the Guarantees; and no injunction or order of any Federal, state or foreign
court shall have been issued that would, as of the Closing Date, prevent the
issuance or sale of the Securities or the issuance of the
Guarantees.
(l) Good
Standing. The Representatives shall have received on and as of
the Closing Date satisfactory evidence of the good standing of the Company and
the Subsidiaries that are corporations or limited liability companies in their
respective jurisdictions of organization, of the existence of the Subsidiaries
that are limited partnerships and their good standing (where applicable) in such
other jurisdictions as the Representatives may reasonably request, in each case
in writing or any standard form of telecommunication from the appropriate
governmental authorities of such jurisdictions.
(m) Additional
Documents. On or prior to the Closing Date, the Company and
the Guarantors shall have furnished to the Representatives such further
certificates and documents as the Representatives may reasonably
request.
(n) Reserve Report
Confirmation Letter. On the date of this Agreement and on the
Closing Date, XxXxxxx Petroleum Consultants, Ltd. shall have furnished to the
Representatives, at the request of the Company, letters, dated the respective
dates of delivery thereof and addressed to the Underwriters, in form and
substance reasonably satisfactory to the Representatives, containing statements
and information with respect to the estimated oil and gas reserves of the
Company and its subsidiaries as reported in letters to the
Company.
(o) Reserve Report
Confirmation Letter. On the date of this Agreement and on the
Closing Date, the Data & Consulting Services Division of Schlumberger
Technology Corporation shall have furnished to the Representatives, at the
request of the Company, letters, dated the respective dates of delivery thereof
and addressed to the Underwriters, in form and substance reasonably satisfactory
to the Representatives, containing statements and information with respect to
the estimated oil and gas reserves of the Company and its subsidiaries as
reported in letters to the Company.
(p) Consummation of Eni
Sale. On or prior to the Closing Date, the Eni Sale shall have
been consummated.
All
opinions, letters, certificates and evidence 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.
7. Indemnification
and Contribution.
(a) Indemnification of
the Underwriters. The Company and each of the Guarantors
jointly and severally agree to indemnify and hold harmless each Underwriter, its
affiliates, directors and officers and each person, if any, who controls such
Underwriter within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, from and against any and all losses, claims, damages and
liabilities (including, without limitation, reasonable legal fees and other
reasonable expenses incurred in connection with any suit, action or proceeding
or any claim asserted, as such fees and expenses are incurred), joint or
several, that arise out of, or are based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in the Registration
Statement or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, not misleading, (ii) or any untrue statement or alleged
untrue statement of a material fact contained in the Prospectus (or any
amendment or supplement thereto), any Issuer Free Writing Prospectus or any Time
of Sale Information, or caused by any omission or alleged omission to state
therein a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading, in each
case except insofar as such losses, claims, damages or liabilities arise out of,
or are based upon, any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with any information
relating to any Underwriter furnished to the Company in writing by such
Underwriter through the Representatives expressly for use therein, it being
understood and agreed that the only such information is that described in
subsection (b) below.
(b) Indemnification of
the Company. Each Underwriter agrees, severally and not
jointly, to indemnify and hold harmless the Company, each of the Guarantors,
each of their respective directors, each of their respective officers who signed
the Registration Statement and each person, if any, who controls the Company or
any of the Guarantors within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act to the same extent as the indemnity set forth in
paragraph (a) above, but only with respect to any losses, claims, damages or
liabilities that arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to such Underwriter furnished to the
Company in writing by such Underwriter through the Representatives expressly for
use in the Registration Statement, the Prospectus (or any amendment or
supplement thereto), any Issuer Free Writing Prospectus or any Time of Sale
Information, it being understood and agreed that the only such information
consists of the following: the third paragraph under the caption “Underwriting”
in the Preliminary Prospectus Supplement concerning the terms of the offering by
the Underwriters; the second sentence of the fifth paragraph under the caption
“Underwriting” in the Preliminary Prospectus Supplement concerning market making
by the Underwriters; the tenth paragraph under the caption “Underwriting” in the
Preliminary Prospectus Supplement concerning stabilizing transactions,
over-allotment transactions, syndicate covering transactions and penalty bids by
the Underwriters; and the seventh paragraph under the caption “Underwriting” in
the Preliminary Prospectus Supplement concerning certain relationships between
you and the Underwriters.
(c) Notice and
Procedures. If any suit, action, proceeding (including any
governmental or regulatory investigation), claim or demand shall be brought or
asserted against any person in respect of which indemnification may be sought
pursuant to either paragraph (a) or (b) above or Section 11, such person (the
“Indemnified Person”) shall promptly notify the person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing; provided
that the failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have under paragraph (a) or (b) above or Section 11 except
to the extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided,
further,
that the failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have to an Indemnified Person otherwise than under
paragraph (a) or (b) above or Section 11. If any such proceeding
shall be brought or asserted against an Indemnified Person and it shall have
notified the Indemnifying Person thereof, the Indemnifying Person shall retain
counsel reasonably satisfactory to the Indemnified Person (who shall not,
without the consent of the Indemnified Person, be counsel to the Indemnifying
Person) to represent the Indemnified Person in such proceeding and shall pay the
reasonable fees and expenses of such counsel related to such proceeding, as
incurred. In any such proceeding, any Indemnified Person shall have
the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the
contrary or (ii) the Indemnifying Person has failed within a reasonable
time to retain counsel reasonably satisfactory to the Indemnified
Person. It is understood and agreed that the Indemnifying Person
shall not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all
such fees and expenses shall be reimbursed as they are incurred. Any
such separate firm for any Underwriter, its affiliates, directors and officers
and any control persons of such Underwriter shall be designated in writing by
Credit Suisse Securities (USA) LLC (“CS Securities”), and any such separate firm
for the Company, each of the Guarantors, each of their respective directors,
each of their respective officers who signed the Registration Statement and any
control persons of the Company and the Guarantors shall be designated in writing
by the Company. The Indemnifying Person shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the
Indemnifying Person agrees to indemnify each Indemnified Person from and against
any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an
Indemnified Person shall have requested that an Indemnifying Person reimburse
the Indemnified Person for fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 60 days after receipt by the Indemnifying Person of such
request and (ii) the Indemnifying Person shall not have reimbursed the
Indemnified Person in accordance with such request prior to the date of such
settlement and the Indemnifying Person shall not have notified the Indemnified
Person in writing that it is disputing in good faith all or a portion of the
fees and expenses included in such request stating in reasonable detail the
basis for such dispute. No Indemnifying Person shall, without the
written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (x) includes an unconditional
release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are
the subject matter of such proceeding and (y) does not include any
statement as to or any admission of fault, culpability or a failure to act by or
on behalf of any Indemnified Person.
(d) Contribution. If
the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each Indemnifying
Person under such paragraph, in lieu of indemnifying such Indemnified Person
thereunder, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Company and the Guarantors on the one hand and the Underwriters on the other
from the offering of the Securities or (ii) if the allocation provided by
clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative fault of the Company and the Guarantors on the one hand
and the Underwriters on the other in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative benefits
received by the Company and the Guarantors on the one hand and the Underwriters
on the other shall be deemed to be in the same respective proportions as the net
proceeds (before deducting expenses) received by the Company and the Guarantors
from the sale of the Securities and the total underwriting discounts and
commissions received by the Underwriters in connection therewith, in each case
as set forth in the table on the cover of the Prospectus, bear to the aggregate
offering price of the Securities. The relative fault of the Company
and the Guarantors on the one hand and the Underwriters on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or any Guarantor
or by the Underwriters and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission.
(e) Limitation on
Liability. The Company, the Guarantors and the Underwriters
agree that it would not be just and equitable if contribution pursuant to this
Section 7 were 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 account of the
equitable considerations referred to in paragraph (d) above. The
amount paid or payable by an Indemnified Person as a result of the losses,
claims, damages and liabilities referred to in paragraph (d) above shall be
deemed to include, subject to the limitations set forth above, any legal or
other expenses incurred by such Indemnified Person in connection with any such
action or claim. Notwithstanding the provisions of this Section 7, in
no event shall an Underwriter be required to contribute any amount in excess of
the amount by which the total underwriting discounts and commissions received by
such Underwriter with respect to the offering of the Securities exceeds the
amount of any damages that such Underwriter has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters’ obligations to contribute
pursuant to this Section 7 are several in proportion to their respective
purchase obligations hereunder and not joint.
(f) Non-Exclusive
Remedies. The remedies provided for in this Section 7 are not
exclusive and shall not limit any rights or remedies which may otherwise be
available to any Indemnified Person at law or in
equity.
8. Effectiveness
of Agreement. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.
9. Termination. This
Agreement may be terminated in the absolute discretion of the Representatives,
by notice to the Company, if after the execution and delivery of this Agreement
and prior to the Closing Date (i) trading generally shall have been
suspended or materially limited on the New York Stock Exchange or the
over-the-counter market; (ii) trading of any securities issued or
guaranteed by the Company or any of the Guarantors shall have been suspended on
any exchange or in any over-the-counter market; (iii) a general moratorium
on commercial banking activities shall have been declared by Federal or New York
State authorities; (iv) there shall have occurred any outbreak or
escalation of hostilities or any change in financial markets or any calamity or
crisis, either within or outside the United States, that, in the judgment of the
Representatives, is material and adverse and makes it impracticable or
inadvisable to proceed with the offering, sale or delivery of the Securities on
the terms and in the manner contemplated by this Agreement, the Time of Sale
Information and the Prospectus; or (v) the representation in Section 3(b)
is incorrect in any respect.
10. Defaulting
Underwriter. (a) If, on the Closing Date, any Underwriter
defaults on its obligation to purchase the Securities that it has agreed to
purchase hereunder, the non-defaulting Underwriters may in their discretion
arrange for the purchase of such Securities by other persons satisfactory to the
Company on the terms contained in this Agreement. If, within 36 hours
after any such default by any Underwriter, the non-defaulting Underwriters do
not arrange for the purchase of such Securities, then the Company shall be
entitled to a further period of 36 hours within which to procure other persons
satisfactory to the non-defaulting Underwriters to purchase such Securities on
such terms. If other persons become obligated or agree to purchase
the Securities of a defaulting Underwriter, either the non-defaulting
Underwriters or the Company may postpone the Closing Date for up to five full
business days in order to effect any changes that in the opinion of counsel for
the Company or counsel for the Underwriters may be necessary in the Registration
Statement and the Prospectus or in any other document or arrangement, and the
Company agrees to promptly prepare any amendment or supplement to the
Registration Statement and the Prospectus that effects any such
changes. As used in this Agreement, the term “Underwriter” includes,
for all purposes of this Agreement unless the context otherwise requires, any
person not listed in Schedule 1 hereto that, pursuant to this Section 10,
purchases Securities that a defaulting Underwriter agreed but failed to
purchase.
(b) If, after
giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and
the Company as provided in paragraph (a) above, the aggregate principal amount
of such Securities that remains unpurchased does not exceed one-eleventh of the
aggregate principal amount of all the Securities, then the Company shall have
the right to require each non-defaulting Underwriter to purchase the principal
amount of Securities that such Underwriter agreed to purchase hereunder plus
such Underwriter’s pro
rata
share (based on the principal amount of Securities that such Underwriter agreed
to purchase hereunder) of the Securities of such defaulting Underwriter or
Underwriters for which such arrangements have not been
made.
(c) If, after
giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and
the Company as provided in paragraph (a) above, the aggregate principal amount
of such Securities that remains unpurchased exceeds one-eleventh of the
aggregate principal amount of all the Securities, or if the Company shall not
exercise the right described in paragraph (b) above, then this Agreement shall
terminate without liability on the part of the non-defaulting
Underwriters. Any termination of this Agreement pursuant to this
Section 10 shall be without liability on the part of the Company, except that
the Company will continue to be liable for the payment of expenses as set forth
in Section 12 hereof and except that the provisions of Section 7 hereof shall
not terminate and shall remain in effect.
(d) Nothing
contained herein shall relieve a defaulting Underwriter of any liability it may
have to the Company or any non-defaulting Underwriter for damages caused by its
default.
11. Qualified
Independent Underwriter. The Company hereby confirms that at
its request Deutsche Bank Securities Inc. has without compensation acted as
“qualified independent underwriter” (in such capacity, the “QIU”) within the
meaning of Rule 2720 of the Conduct Rules of the National Association of
Securities Dealers, Inc. in connection with the offering of the
Securities. The Company will indemnify and hold harmless the QIU
against any losses, claims, damages or liabilities, joint or several, to which
the QIU may become subject, under the Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon the QIU’s acting (or alleged failing to act) as such “qualified
independent underwriter” and will reimburse the QIU for any legal or other
expenses reasonably incurred by the QIU in connection with investigating or
defending any such loss, claim, damage, liability or action as such expenses are
incurred.
12. Payment of
Expenses. (a) Whether
or not the transactions contemplated by this Agreement are consummated or this
Agreement is terminated, the Company will pay or cause to be paid all costs and
expenses incident to the performance of its obligations hereunder, including
without limitation, (i) the costs incident to the authorization, issuance,
sale, preparation and delivery of the Securities and any taxes payable in that
connection; (ii) the costs incident to the preparation, printing and filing
under the Securities Act of the Registration Statement, the Preliminary
Prospectus, any Issuer Free Writing Prospectus, any Time of Sale Information and
the Prospectus (in each case including all exhibits, amendments and supplements
thereto) and the distribution thereof; (iii) the costs of reproducing and
distributing each of the Transaction Documents; (iv) the fees and expenses
of the Company’s and the Guarantor’s counsel and independent accountants and
independent reserve engineers; (v) the fees and expenses incurred in
connection with the registration or qualification and determination of
eligibility for investment of the Securities under the laws of such
jurisdictions as the Representatives may designate and the preparation, printing
and distribution of a Blue Sky memorandum (including the reasonable fees and
expenses of counsel for the Underwriters in connection therewith); (vi) any
fees charged by rating agencies for rating the Securities; (vii) the fees
and expenses of the Trustee and any paying agent (including related fees and
expenses of any counsel to such parties); (viii) all expenses and
application fees incurred in connection with any filing with, and clearance of
the offering by, the Financial Industry Regulatory Authority; and (ix) all
expenses incurred by the Company in connection with any “road show” presentation
to potential investors.
(b) If (i)
this Agreement is terminated pursuant to Section 9(ii) or 9(v) (other than in
the case of Section 9(v), if the Company, the Guarantors and the Underwriters
subsequently enter into another agreement for the Underwriters to underwrite the
same or substantially similar securities of the Company) or (ii) the Company for
any reason fails to tender the Securities for delivery to the Underwriters or
(iii) the Underwriters decline to purchase the Securities due to the failure of
the Company and the Guarantors to satisfy any condition under Section 6 hereof,
the Company and each of the Guarantors jointly and severally agree to reimburse
the Underwriters for all out-of-pocket costs and expenses (including the
reasonable fees and expenses of their counsel) reasonably incurred by the
Underwriters in connection with this Agreement and the offering contemplated
hereby.
13. Persons
Entitled to Benefit of Agreement. This Agreement shall inure
to the benefit of and be binding upon the parties hereto and their respective
successors and the officers and directors and any controlling persons referred
to herein, and the affiliates of each Underwriter referred to in Section 7
hereof. Nothing in this Agreement is intended or shall be construed
to give any other person any legal or equitable right, remedy or claim under or
in respect of this Agreement or any provision contained herein. No
purchaser of Securities from any Underwriter shall be deemed to be a successor
merely by reason of such purchase.
14. Survival. The
respective indemnities, rights of contribution, representations, warranties,
agreements and other statements of the Company, the Guarantors and the
Underwriters contained in this Agreement or made by or on behalf of the Company,
the Guarantors or the Underwriters pursuant to this Agreement or any certificate
delivered pursuant hereto shall survive the delivery of and payment for the
Securities and shall remain in full force and effect, regardless of any
termination of this Agreement or any investigation made by or on behalf of the
Company, the Guarantors or the Underwriters.
15. Certain
Defined Terms. For purposes of this Agreement, (a) except
where otherwise expressly provided, the term “affiliate” has the meaning set
forth in Rule 405 under the Securities Act; (b) the term “business day”
means any day other than a day on which banks are permitted or required to be
closed in New York City; (c) the term “subsidiary” has the meaning set
forth in Rule 405 under the Securities Act; and (d) the term “significant
subsidiary” has the meaning set forth in Rule 1-02 of Regulation S-X under the
Exchange Act.
16. Miscellaneous. (a) Authority of CS
Securities. Any action by the Underwriters or the
Representatives hereunder may be taken by CS Securities on behalf of the
Underwriters or the Representatives, as the case may be, and any such action
taken by CS Securities shall be binding upon the Underwriters or the
Representatives, as the case may be.
(b) Notices. All
notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Underwriters shall
be given to the Representatives c/o Credit Suisse Securities (USA) LLC, Eleven
Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (fax: (000) 000-0000); Attention:
Xxxxxxx Xxxxxxxxx. Notices to the Company shall be given to it at 000
Xxxx Xxxxxxxx Xxxxxx, Xxxx Xxxxx, Xxxxx 00000 (fax: 000-000-0000); Attention:
General Counsel.
(c) Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of law other than Section 5-1401 of the New York General
Obligations Law. The Company and each Guarantor hereby submit to the
non-exclusive jurisdiction of the Federal and state courts in the Borough of
Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated
hereby. The Company and the Guarantors irrevocably and
unconditionally waive any objection to the laying of venue of any suit or
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby in Federal and state courts in the Borough of Manhattan in
The City of New York and irrevocably and unconditionally waive and agree not to
plead or claim in any such court that any such suit or proceeding in any such
court has been brought in an inconvenient forum.
(d) Counterparts. This
Agreement may be signed in counterparts (which may include counterparts
delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same
instrument.
(e) Amendments or
Waivers. No amendment or waiver of any provision of this
Agreement, nor any consent or approval to any departure therefrom, shall in any
event be effective unless the same shall be in writing and signed by the parties
hereto.
(f) Headings. The
headings herein are included for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this
Agreement.
[Remainder
of this page intentionally left blank]
If the
foregoing is in accordance with your understanding, please indicate your
acceptance of this Agreement by signing in the space provided
below.
Very truly yours, | |||
QUICKSILVER RESOURCES INC. | |||
|
By:
|
/s/ Xxxxx Xxxxxx | |
Name: Xxxxx Xxxxxx | |||
Title: President and Chief Executive Officer | |||
COWTOWN PIPELINE FUNDING, INC. | |||
|
By:
|
/s/ Xxxxxx Xxxx | |
Name: Xxxxxx Xxxx | |||
Title: Senior Vice President — Chief Financial Officer | |||
COWTOWN PIPELINE MANAGEMENT, INC. | |||
|
By:
|
/s/ Xxxxxx Xxxx | |
Name: Xxxxxx Xxxx | |||
Title: Senior Vice President — Chief Financial Officer | |||
COWTOWN PIPELINE L.P. | |||
By:
|
COWTOWN PIPELINE MANAGEMENT, INC. | ||
Its General Partner | |||
|
By:
|
/s/ Xxxxxx Xxxx | |
Name: Xxxxxx Xxxx | |||
Title: Senior Vice President — Chief Financial Officer | |||
COWTOWN GAS PROCESSING L.P. | |||
By:
|
COWTOWN PIPELINE MANAGEMENT, INC. | ||
Its General Partner | |||
|
By:
|
/s/ Xxxxxx Xxxx | |
Name: Xxxxxx Xxxx | |||
Title: Senior Vice President — Chief Financial Officer | |||
Accepted: June 18, 2009 | |||
CREDIT SUISSE SECURITIES (USA) LLC | |||
By: |
/s/
Xxxxxxx X. Xxxxx
|
||
Name:
Xxxxxxx X. Xxxxx
|
|||
Title: Managing Director | |||
DEUTSCHE BANK SECURITIES INC. | |||
By: |
/s/
Xxxxx Xxxxxxxxxx
|
||
Name:
Xxxxx Xxxxxxxxxx
|
|||
Title: Managing Director | |||
/s/
Xxxxxxxxx Xxxxx
|
|||
Name:
Xxxxxxxxx Xxxxx
|
|||
Title: Managing Director | |||
X.X. XXXXXX SECURITIES INC. | |||
By: | /s/ X. X. Xxxxxx | ||
Name: X. X. Xxxxxx | |||
Title: Executive Director |
For themselves and on behalf of
the
several Underwriters listed
in Schedule 1 hereto
Schedule
1
Underwriter
|
Principal
Amount
|
||||
Credit
Suisse Securities (USA) LLC
|
$165,000,000
|
||||
Deutsche
Bank Securities Inc.
|
105,000,000
|
||||
X.X.
Xxxxxx Securities Inc.
|
105,000,000
|
||||
BNP
Paribas Securities Corp.
|
43,500,000
|
||||
Scotia
Capital (USA) Inc.
|
43,500,000
|
||||
Calyon
Securities (USA) Inc.
|
24,000,000
|
||||
RBS
Securities Inc.
|
24,000,000
|
||||
TD
Securities (USA) LLC
|
24,000,000
|
||||
Wedbush
Xxxxxx Securities Inc.
|
24,000,000
|
||||
BBVA
Securities Inc.
|
6,000,000
|
||||
CIBC
World Markets Corp.
|
6,000,000
|
||||
Comerica
Securities, Inc.
|
6,000,000
|
||||
Daiwa
Securities America Inc.
|
6,000,000
|
||||
KeyBanc
Capital Markets Inc.
|
6,000,000
|
||||
SG
Americas Securities, LLC
|
6,000,000
|
||||
U.S.
Bancorp Investments, Inc.
|
6,000,000
|
||||
Total
|
$
|
600,000,000
|
|||
Schedule 1
Schedule
2
Guarantors
|
State
of Incorporation or
Organization
|
|
Cowtown
Pipeline Funding, Inc.
|
Delaware
|
|
Cowtown
Pipeline Management, Inc.
|
Texas
|
|
Cowtown
Pipeline L.P.
|
Texas
|
|
Cowtown
Gas Processing L.P.
|
Texas
|
Schedule
2