8,750,000 Common Units OXFORD RESOURCE PARTNERS, LP Representing Limited Partner Interests UNDERWRITING AGREEMENT
Exhibit 1.1
Execution Version
8,750,000 Common Units
OXFORD RESOURCE PARTNERS, LP
Representing Limited Partner Interests
July 13, 2010
Barclays Capital Inc.
Citigroup Global Markets Inc.,
As Representatives of the several
Underwriters named in Schedule 1 attached hereto
Citigroup Global Markets Inc.,
As Representatives of the several
Underwriters named in Schedule 1 attached hereto
c/o Barclays Capital Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Oxford Resource Partners, LP, a Delaware limited partnership (the “Partnership”), proposes to
sell to the underwriters (the “Underwriters”) named in Schedule 1 attached to this
agreement (this “Agreement”) 8,750,000 common units (the “Firm Units”) representing limited partner
interests in the Partnership (“Common Units”). In addition, the Partnership proposes to grant to
the Underwriters an option to purchase up to 1,312,500 additional Common Units on the terms set
forth in Section 2 hereof (the “Option Units”). The Firm Units and the Option Units, if purchased,
are hereinafter collectively called the “Units.”
This is to confirm the agreement among the Partnership, Oxford Resources GP, LLC, a Delaware
limited liability company and the general partner of the Partnership (the “General Partner”), and
Oxford Mining Company, LLC, an Ohio limited liability company and a wholly owned subsidiary of the
Partnership (the “Operating Company” and, together with the Partnership and the General Partner,
the “Partnership Parties”), concerning the purchase of the Units from the Partnership by the
Underwriters.
On the Initial Delivery Date (as defined in Section 4 hereof), immediately prior to the
closing of the offering of the Firm Units:
(a) the Partnership will distribute the right to receive cash in the amount of $21.0 million
to be collected from accounts receivable outstanding as of June 15, 2010 to the
General Partner,
C&T Coal, Inc., an Ohio corporation (“C&T Coal”), AIM Oxford Holdings, LLC, a Delaware limited
liability company (“AIM Oxford”) and the participants in the Oxford Resource Partners, LP Amended
and Restated Long-Term Incentive Plan that hold the Partnership’s common units at that time (the
“LTIP Participants”), pro rata, in accordance with their respective interests in the Partnership;
(b) each general partner unit held by the General Partner will automatically split into
1.82general partner units, with the result that the General Partner will be the record holder of an
aggregate of 244,607 general partner units, representing a 2.0% general partner interest in the
Partnership;
(c) each Class A common unit held by an LTIP Participant will automatically split into 1.82
Class A common units, with the result that the LTIP Participants will be the record holder of an
aggregate of 126,565 Class A common units, representing an aggregate 1.0% limited partner interest
in the Partnership;
(d) each Class B common unit held by C&T Coal will automatically split into 1.82 Class B
common units, with the result that C&T Coal will be the record holder of an aggregate of 3,999,696
Class B common units, representing an aggregate 32.7% limited partner interest in the Partnership;
and
(e) each Class B common unit held by AIM Oxford will automatically split into 1.82 Class B
common units, with the result that AIM Oxford will be the record holder of an aggregate of
7,859,487 Class B common units, representing an aggregate 64.3% limited partner interest in the
Partnership.
The transactions contemplated in clauses (a) through (e) above are referred to herein as the
“Pre-Closing Transactions.”
Upon the closing of the offering of the Firm Units:
(a) all of the Class B common units held by C&T Coal will automatically convert into (i)
532,476 Common Units, representing a 2.5% limited partner interest in the Partnership, and (ii)
3,467,220 subordinated units representing limited partner interests in the Partnership
(“Subordinated Units”), representing a 16.5% limited partner interest in the Partnership;
(b) all of the Class B common units held by AIM Oxford will automatically convert into (i)
1,046,327 Common Units, representing a 5.0% limited partner interest in the Partnership, and (ii)
6,813,160 Subordinated Units, representing a 32.5% limited partner interest in the Partnership;
(c) C&T Coal and AIM Oxford will contribute 59,022 Common Units and 115,978 Common Units,
respectively, to the General Partner as a capital contribution;
(d) the General Partner will contribute the 175,000 Common Units contributed to it by C&T Coal
and AIM Oxford to the Partnership in exchange for 175,000 general partner units in order to
maintain its 2.0% general partner interest in the Partnership;
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(e) the Third Amended and Restated Agreement of Limited Partnership of the Partnership (as the
same may be amended and restated on or prior to each Delivery Date, the “Partnership Agreement”),
will take effect, pursuant to which, among other things, the Class A common units will be
re-designated as Common Units;
(f) the Credit Agreement, dated July 6, 2010 (the “Credit Agreement”), by and among the
Operating Company, as borrower, and the lenders named therein shall have closed; and
(g) the Partnership will use the net proceeds from the offering of the Firm Units
and concurrent borrowings under the Credit Agreement as described under the heading “Use of
Proceeds” in the most recent Preliminary Prospectus (as defined below), including without
limitation, to purchase certain equipment pursuant to the lease termination and equipment purchase
letter agreements listed on Schedule 4 hereto, as amended (the “Lease Buyout Agreements”),
previously entered into by the Partnership and the Operating Company and the lessors named therein.
The transactions contemplated in clauses (a) through (e) above are referred to herein as the
“Concurrent Transactions” and, together with the Pre-Closing Transactions, are referred to herein
as the “Transactions.”
The Partnership, the General Partner, the Operating Company, Harrison Resources, LLC, an Ohio
limited liability company (“Harrison Resources”), Oxford Mining Company — Kentucky, LLC, a Kentucky
limited liability company (“Oxford Kentucky”), and Xxxxx Coal Company, LLC, an Ohio limited
liability company (“Xxxxx”), are referred to collectively herein as the “Oxford Entities.” The
Operating Company, Xxxxxxxx Resources, Oxford Kentucky and Xxxxx are referred to collectively
herein as the “Subsidiaries.”
1. Representations, Warranties and Agreements of the Partnership Parties. The Partnership
Parties jointly and severally represent, warrant and agree that:
(a) Registration; Definitions; No Stop Order. A registration statement (Registration
No. 333-165662) on Form S-1 relating to the Units has (i) been prepared by the Partnership
in conformity with the requirements of the Securities Act of 1933, as amended (the
“Securities Act”), and the rules and regulations (the “Rules and Regulations”) of the
Securities and Exchange Commission (the “Commission”) thereunder; (ii) been filed with the
Commission under the Securities Act; and (iii) become effective under the Securities Act.
Copies of such registration statement and any amendment thereto have been delivered by the
Partnership to you as the representatives (the “Representatives”) of the Underwriters. As
used in this Agreement:
(i) “Applicable Time” means 4:30 p.m. (New York City time) on July 13, 2010;
(ii) “Effective Date” means the date and time as of which the Registration
Statement was declared effective by the Commission;
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(iii) “Issuer Free Writing Prospectus” means each “free writing prospectus” (as
defined in Rule 405 of the Rules and Regulations) prepared by or on behalf of the
Partnership or used or referred to by the Partnership in connection with the
offering of the Units;
(iv) “Preliminary Prospectus” means any preliminary prospectus relating to the
Units included in the Registration Statement or filed with the Commission pursuant
to Rule 424(b) of the Rules and Regulations;
(v) “Pricing Disclosure Package” means, as of the Applicable Time, the most
recent Preliminary Prospectus, together with the information included in
Schedule 3 hereto, and each Issuer Free Writing Prospectus filed with the
Commission or used by the Partnership on or before the Applicable Time, other than a
road show that is an Issuer Free Writing Prospectus but is not required to be filed
under Rule 433 of the Rules and Regulations;
(vi) “Prospectus” means the final prospectus relating to the Units, as filed
with the Commission pursuant to Rule 424(b) of the Rules and Regulations; and
(vii) “Registration Statement” means the registration statement on Form S-1
(Registration No. 333-165662) relating to the Units, as amended as of the Effective
Date, including any Preliminary Prospectus, the Prospectus and all exhibits to such
registration statement.
Any reference to the “most recent Preliminary Prospectus” shall be deemed to refer to the
latest Preliminary Prospectus included in the Registration Statement or filed pursuant to
Rule 424(b) of the Rules and Regulations prior to or on the date hereof. The Commission has
not issued any order preventing or suspending the use of any Preliminary Prospectus or the
Prospectus or suspending the effectiveness of the Registration Statement, and no proceeding
for such purpose has been instituted or, to the knowledge of the Partnership Parties,
threatened by the Commission.
(b) Partnership Not an “Ineligible Issuer.” The Partnership was not at the time of
initial filing of the Registration Statement and at the earliest time thereafter that the
Partnership or another offering participant made a bona fide offer (within the meaning of
Rule 164(h)(2) of the Rules and Regulations) of the Units, is not on the date hereof and
will not be on the applicable Delivery Date (as defined in Section 4 hereof) an “ineligible
issuer” (as defined in Rule 405 of the Rules and Regulations).
(c) Registration Statement and Prospectus Conform to the Requirements of the Securities
Act. The Registration Statement conformed and will conform in all material respects on the
Effective Date and on the applicable Delivery Date, and any amendment to the Registration
Statement filed after the date hereof will conform in all material respects when filed, to
the applicable requirements of the Securities Act and the Rules and Regulations. The most
recent Preliminary Prospectus conformed in all material respects on the Effective Date, and
the Prospectus will conform in all material
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respects when filed with the Commission pursuant
to Rule 424(b) and on the applicable Delivery Date, to the requirements of the Securities
Act and the Rules and Regulations.
(d) No Material Misstatements or Omissions in the Registration Statement. The
Registration Statement did not, as of the Effective Date, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; provided that no representation or warranty is
made as to information contained in or omitted from the Registration Statement in reliance
upon and in conformity with written information furnished to the Partnership through the
Representatives by or on behalf of any Underwriter specifically for inclusion therein, which
information is specified in Section 8(e).
(e) No Material Misstatements or Omissions in Prospectus. The Prospectus will not, as
of its date and on the applicable Delivery Date, contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided that no
representation or warranty is made as to information contained in or omitted from the
Prospectus in reliance upon and in conformity with written information furnished to the
Partnership through the Representatives by or on behalf of any Underwriter specifically for
inclusion therein, which information is specified in Section 8(e).
(f) No Material Misstatements or Omissions in Pricing Disclosure Package. The Pricing
Disclosure Package did not, as of the Applicable Time, contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that no representation or warranty is made as to information contained in or
omitted from the Pricing Disclosure Package in reliance upon and in conformity with written
information furnished to the Partnership through the Representatives by or on behalf of any
Underwriter specifically for inclusion therein, which information is specified in Section
8(e).
(g) No Material Misstatements or Omissions in Issuer Free Writing Prospectuses. Each
Issuer Free Writing Prospectus (including, without limitation, any road show that is a free
writing prospectus under Rule 433 of the Rules and Regulations), when considered together
with the Pricing Disclosure Package as of the Applicable Time, did not contain an untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as to information contained
in or omitted from each Issuer Free Writing Prospectus in reliance upon and in conformity
with written information furnished to the Partnership through the Representatives by or on
behalf of any Underwriter specifically for inclusion therein, which information is specified
in Section 8(e).
(h) Issuer Free Writing Prospectuses Conform to the Requirements of the Securities Act.
Each Issuer Free Writing Prospectus conformed or will conform in all material respects to
the requirements of the Securities Act and the Rules and Regulations
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on the date of first
use, and the Partnership has complied with any filing requirements applicable to such Issuer
Free Writing Prospectus pursuant to the Rules and Regulations. The Partnership has not made
any offer relating to the Units that would constitute an Issuer Free Writing Prospectus
without the prior written consent of the Representatives. The Partnership has retained in
accordance with the Rules and Regulations all Issuer Free Writing Prospectuses that were not
required to be filed pursuant to the Rules and Regulations. The Partnership has taken all
actions necessary so that any road show (as defined in Rule 433 of the Rules and
Regulations) in connection with the offering of the Units will not be required to be filed
pursuant to the Rules and Regulations.
(i) Formation, Qualification and Authority. Each of the Oxford Entities has been duly
formed and is validly existing and in good standing as a limited partnership or limited
liability company, as the case may be, under the laws of its respective jurisdiction of
formation, with all partnership or limited liability company, as the case may be, power and
authority necessary to be the record holder of or hold its properties and conduct the
businesses in which it is engaged and, in the case of the General Partner, to act as the
general partner of the Partnership, in each case in all material respects as described in
the Registration Statement, the Pricing Disclosure Package and the Prospectus. Each of the
Oxford Entities is duly registered or qualified to do business in and is in good standing as
a foreign limited partnership or limited liability company, as applicable, in each
jurisdiction in which its record ownership or leasing of property or the conduct of its
businesses makes such qualification or registration necessary, except where the failure to
be so qualified or registered, individually or in the aggregate, would not reasonably be
expected to have a material adverse effect on the condition (financial or other), results of
operations, net worth, properties, business or prospects of the Partnership and its
Subsidiaries, taken as a whole (a “Material Adverse Effect”).
(j) Ownership of the General Partner. Subject to the last sentence of this Section
1(j), C&T Coal and AIM Oxford are the record holders of 33.7% and 66.3%, respectively, of
the issued and outstanding membership interests in the General Partner; such membership
interests have been duly authorized and validly issued in accordance with the Second Amended
and Restated Limited Liability Company Agreement of the General Partner, as amended (or, if
applicable, any predecessor agreement, the “GP LLC Agreement”), and are fully paid (to the
extent required under the GP LLC Agreement) and non-assessable (except as such
nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware Limited
Liability Company Act (the “Delaware LLC Act”)); and C&T Coal and AIM Oxford are the record
holders of such membership interests free and clear of all liens, encumbrances, security
interests, charges or claims (“Liens”), except as disclosed in the Registration Statement,
the Pricing Disclosure Package and the Prospectus. At the Initial Delivery Date, Xxxxxxx X.
Xxxxxx will receive a 0.5% profits participation interest in the General Partner; such
interest will be duly authorized and validly issued in accordance with the GP LLC Agreement
and will be fully paid (to the extent required under the GP LLC Agreement) and nonassessable
(except as such nonassessability may be affected by Sections 18-607 and 18-804 of the
Delaware LLC Act); and Xx. Xxxxxx will be the record holder of such interest free and clear
of all Liens, except as disclosed in the Pricing Disclosure Package and the Prospectus.
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(k) Ownership of the General Partner Interest in the Partnership.
The General Partner is and, after giving effect to the Transactions, at each Delivery
Date will be, the sole general partner of the Partnership with a 2.0% general partner
interest in the Partnership; such general partner interest is duly authorized and validly
issued in accordance with the Partnership Agreement; and the General Partner is the record
holder of such general partner interest free and clear of all Liens.
(l) Ownership of Sponsor Units. Assuming no purchase by the Underwriters of Option
Units on the Initial Delivery Date, at the Initial Delivery Date, C&T Coal will be the
record holder of 473,454 Common Units and 3,467,220 Subordinated Units and AIM Oxford will
be the record holder of 930,349 Common Units and 6,813,160 Subordinated Units (collectively,
the “Sponsor Units”), the Sponsor Units and the limited partner interests represented
thereby will have been duly authorized and validly issued in accordance with the Partnership
Agreement and will be fully paid (to the extent required under the Partnership Agreement)
and nonassessable (except as such nonassessability may be affected by Sections 17-303,
17-607 and 17-804 of the Delaware Revised Uniform Limited Partnership Act (the “Delaware LP
Act”)), and C&T Coal and AIM Oxford will be the record holders of their respective Sponsor
Units free and clear of all Liens.
(m) Valid Issuance of Units. At the Initial Delivery Date or the Option Unit Delivery
Date (as defined in Section 4 hereof), as the case may be, the Firm Units or the Option
Units, as the case may be, and the limited partner interests represented thereby, will be
duly authorized in accordance with the Partnership Agreement and, when issued and delivered
to the Underwriters against payment therefor in accordance with this Agreement, will be
validly issued, fully paid (to the extent required under the Partnership Agreement) and
nonassessable (except as such nonassessability may be affected by Sections 17-303, 17-607 or
17-804 of the Delaware LP Act).
(n) Ownership of Incentive Distribution Rights in the Partnership. The General Partner
is the record holder of all of the incentive distribution rights in the Partnership (the
“Incentive Distribution Rights”) and such Incentive Distribution Rights have been duly
authorized and validly issued in accordance with the Partnership Agreement, and are fully
paid (to the extent required under the Partnership Agreement) and nonassessable (except as
such nonassessability may be affected by matters described in Sections 17-303, 17-607 and
17-804 of the Delaware LP Act); and the General Partner is the record holder of the
Incentive Distribution Rights free and clear of all Liens.
(o) Capitalization of the Partnership. Upon the consummation of the Transactions,
other than the Common Units held by the LTIP Participants, the Sponsor Units and the
Incentive Distribution Rights, the Units will be the only limited partner interests of the
Partnership issued and outstanding at each Delivery Date.
(p) Ownership of the Operating Company. At each Delivery Date, the Partnership will be
the record holder of 100% of the issued and outstanding membership interests in the
Operating Company; such membership interests have been duly authorized and validly issued in
accordance with the Amended and Restated Operating
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Agreement of the Operating Company, as
amended (the “Operating Company Operating Agreement”), and are fully paid (to the extent
required under the Operating Company Operating Agreement) and nonassessable (except as such
nonassessability may be affected by matters described in Section 1705.23 of the Ohio Limited
Liability Company Law (the “Ohio LLC Law”)); and the Partnership will be the record holder
of such membership interests free and clear of all Liens, other than Liens arising under the
Credit Agreement.
(q) Ownership of Xxxxxxxx Resources. At each Delivery Date, the Operating Company will
be the record holder of 51% of the issued and outstanding membership interests in Xxxxxxxx
Resources; such membership interests have been duly authorized in accordance with the
Amended and Restated Operating Agreement of Xxxxxxxx Resources, as amended (the “Xxxxxxxx
Operating Agreement”), and are fully paid (to the extent required under the Xxxxxxxx
Operating Agreement) and nonassessable (except as such nonassessability may be affected by
matters described in Section 1705.23 of the Ohio LLC Law); and the Operating Company will be
the record holder of such membership interests free and clear of all Liens, other than Liens
arising under the Credit Agreement.
(r) Ownership of Oxford Kentucky. At each Delivery Date, the Operating Company will be
the record holder of 100% of the issued and outstanding membership interests in Oxford
Kentucky; such membership interests have been duly authorized in accordance with the Amended
and Restated Operating Agreement of Oxford Kentucky (the “Oxford Kentucky Operating
Agreement”) and are fully paid (to the extent required under the Oxford Kentucky Operating
Agreement) and nonassessable (except as such nonassessability may be affected by matters
described in the Kentucky Revised Statutes Section 275.230); and the Operating Company will
be the record holder of such membership interests free and clear of all Liens, other than
Liens arising under the Credit Agreement.
(s) Ownership of Xxxxx. At each Delivery Date, the Operating Company will be the
record holder of 100% of the issued and outstanding membership interests in Xxxxx; such
membership interests have been duly authorized in accordance with the Operating Agreement of
Xxxxx (the “Xxxxx Operating Agreement,” and together with the Operating Company Operating
Agreement, the Xxxxxxxx Operating Agreement and the Oxford Kentucky Operating Agreement, the
“Subsidiary Operating Agreements”) and are fully paid (to the extent required under the
Xxxxx Operating Agreement) and nonassessable (except as such nonassessability may be
affected by matters described in Section 1705.23 of the Ohio LLC Law); and the Operating
Company will be the record holder of such membership interests free and clear of all Liens,
other than Liens arising under the Credit Agreement.
(t) No Other Subsidiaries. Other than with respect to the other Oxford Entities, the
General Partner is not the record holder, and at each Delivery Date will not be the record
holder, directly or indirectly, of any equity or long-term debt securities of any
corporation, partnership, limited liability company, joint venture, association or other
entity. Other than with respect to the Subsidiaries, the Partnership is not the record
holder, and at each Delivery Date will not be the record holder, directly or indirectly, of
8
any equity or long-term debt securities of any corporation, partnership, limited liability
company, joint venture, association or other entity. Other than the Operating Company’s
interests as record holder of (i) a 51% membership interest in Xxxxxxxx Resources, (ii) a
100% membership interest in Oxford Kentucky, and (iii) a 100% membership interest in Xxxxx,
none of the Subsidiaries is a record holder, and at each Delivery Date will not be the
record holder, directly or indirectly, of any equity or long-term debt securities of any
corporation, partnership, limited liability company, joint venture, association or other
entity. Other than the Operating Company and Oxford Kentucky, the Partnership does not
have, and will not have at each Delivery Date, any subsidiaries that would be deemed to be a
“significant subsidiary” of the Partnership (as such term is defined in Section 1-02(w) of
Regulation S-X of the Securities Act).
(u) No Preemptive Rights, Registration Rights or Options. Except as identified in the
Pricing Disclosure Package or as set forth in the Partnership Agreement, the GP LLC
Agreement, the Investors’ Rights Agreement dated August 24, 2007 by and among Oxford
Resource Partners, LP, Oxford Resources GP, LLC, AIM Oxford Holdings, LLC, C&T Coal, Inc.,
Xxxxxxx X. Xxxxxxxx and Xxxxxx X. Xxxxxxxx (the “Investors’ Rights Agreement”), the
unitholder agreements with LTIP Participants or the Subsidiary Operating Agreements, there
are no (i) preemptive rights or other rights to subscribe for or to purchase, nor any
restriction upon the voting or transfer of, any equity interests in any of the Oxford
Entities or (ii) outstanding options or warrants to purchase any securities of any of the
Oxford Entities. Except for such rights that have been waived or complied with, none of (i)
the filing of the Registration Statement, (ii) the consummation of the transactions
(including the Transactions) contemplated by this Agreement or (iii) the offering or sale of
the Units as contemplated by this Agreement gives rise to any rights for or relating to the
registration of any Common Units or other securities of any of the Oxford Entities.
(v) Authority and Authorization. The Partnership has all requisite limited partnership
power and authority to issue, sell and deliver the Units in accordance with and upon the
terms and conditions set forth in this Agreement and the Partnership Agreement. Each of the
Partnership Parties has all requisite limited partnership or limited liability company power
and authority, as the case may be, to execute and deliver this Agreement and to perform its
respective obligations hereunder. At each Delivery Date, all limited partnership and
limited liability company action, as the case may be, required to be taken by any of the
Oxford Entities or any of their respective unitholders, members or partners for the
authorization, issuance, sale and delivery of the Units and the consummation of the
transactions (including the Transactions) contemplated by this Agreement, shall have been
validly taken.
(w) Authorization, Execution and Delivery of this Agreement. This Agreement has been
duly authorized and validly executed and delivered by or on behalf of each of the
Partnership Parties.
(x) Authorization, Execution, Delivery and Enforceability of Certain Agreements. On or
before the Initial Delivery Date:
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(i) the GP LLC Agreement will have been duly authorized, executed and delivered
by each of C&T Coal and AIM Oxford and will be a valid and legally binding
agreement, enforceable by and against each of C&T Coal and AIM Oxford in accordance
with its terms;
(ii) the Partnership Agreement will have been duly authorized, executed and
delivered by the General Partner and will be a valid and legally binding agreement
of the partners in the Partnership, enforceable by and against the partners in the
Partnership in accordance with its terms;
(iii) the Operating Company Operating Agreement will have been duly authorized,
executed and delivered by the Partnership and will be a valid and legally binding
agreement, enforceable by and against the Partnership in accordance with its terms;
(iv) the Xxxxxxxx Operating Agreement will have been duly authorized, executed
and delivered by the Operating Company and will be a valid and legally binding
agreement, enforceable by and against the Operating Company in accordance with its
terms;
(v) the Oxford Kentucky Operating Agreement will have been duly authorized,
executed and delivered by the Operating Company and will be a valid and legally
binding agreement, enforceable by and against the Operating Company in accordance
with its terms;
(vi) the Xxxxx Operating Agreement will have been duly authorized, executed and
delivered by the Operating Company and will be a valid and legally binding
agreement, enforceable by and against the Operating Company in accordance with its
terms;
(vii) the Credit Agreement will have been duly authorized, executed and
delivered by the Oxford Entities that are parties thereto and the other parties
thereto and will be a valid and legally binding agreement, enforceable by and
against the Oxford Entities that are parties thereto in accordance with its terms;
(viii) each of the Lease Buyout Agreements will have been duly authorized, and
where a signatory thereto executed and delivered by the Oxford Entities that are
parties thereto and will be a valid and legally binding agreement, enforceable by
and against the Oxford Entities that are parties thereto in accordance with its
terms; and
(ix) the Administrative and Operational Services Agreement (the “Administrative
Services Agreement”), by and among the Partnership, the Operating Company and the
General Partner, will have been duly authorized, executed and delivered by the
parties thereto and will be a valid and legally binding agreement, enforceable by
and against such parties in accordance with its terms;
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provided, however, that with respect to each agreement described in this Section 1(x), the
enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent transfer or
conveyance, reorganization, moratorium and similar laws relating to or affecting creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law); and provided further that the indemnity,
contribution and exoneration provisions contained in any such agreements may be limited by
applicable laws relating to fiduciary duties, public policy and an implied covenant of good faith
and fair dealing.
(y) No Conflicts. None of (i) the offering, issuance and sale by the Partnership of
the Units and the application of the proceeds from the sale of the Units as described under
“Use of Proceeds” in the Pricing Disclosure Package, (ii) the execution, delivery and
performance of this Agreement by the Partnership Parties, or (iii) the consummation of the
transactions (including the Transactions) contemplated hereby (A) conflicts or will conflict
with or constitutes or will constitute a violation of the agreement of limited partnership,
limited liability company agreement, certificate of formation, articles of organization or
conversion or other constituent document of any of the Oxford Entities, (B) conflicts or
will conflict with or constitutes or will constitute a breach or violation of, or a default
(or an event that, with notice or lapse of time or both, would constitute such a default)
under any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or
instrument to which any of the Oxford Entities is a party or by which any of them or any of
their respective properties may be bound, (C) violates or will violate any statute, law or
regulation or any order, judgment, decree or injunction of any court or governmental agency
or body directed to any of the Oxford Entities or any of their properties in a proceeding to
which any of them or their property is a party or (D) results or will result in the creation
or imposition of any Lien upon any property or assets of any of the Oxford Entities, which
conflicts, breaches, violations, defaults or Liens, in the case of clauses (B), (C) or (D)
would, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect or materially impair the ability of any of the Oxford Entities to consummate the
transactions (including the Transactions) contemplated under this Agreement.
(z) No Consents. No permit, consent, approval, authorization, order, registration,
filing or qualification of or with any court or governmental agency or body having
jurisdiction over any of the Oxford Entities or any of their properties or assets is
required in connection with (i) the offering, issuance or sale by the Partnership of the
Units, (ii) the application of the proceeds therefrom as described under “Use of Proceeds”
in the Pricing Disclosure Package, (iii) the execution and delivery of this Agreement by the
Partnership Parties or (iv) consummation of the transactions (including the Transactions)
contemplated hereby, except for (x) consents, approvals and similar authorizations as may be
required under the Securities Act, the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), the state securities or “Blue Sky” laws of any jurisdiction or the by-laws
and rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”) in connection with
the purchase and distribution of the Units by the Underwriters, (y) such consents that have
been, or prior to any such Delivery Date will be, obtained and (z) such consents that, if
not obtained, would not reasonably be expected to have a Material Adverse Effect or
materially impair the ability of any of the Oxford
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Entities to consummate the transactions
(including the Transactions) contemplated under this Agreement.
(aa) No Defaults. None of the Oxford Entities (i) is in violation of its certificate
of limited partnership, agreement of limited partnership, limited liability company
agreement or other organizational documents, (ii) is in violation of any law, statute,
ordinance, administrative or governmental rule or regulation applicable to it or of any
decree of any court or governmental agency or body having jurisdiction over it, or (iii) is
in breach, default (or an event that, with notice or lapse of time or both, would constitute
such a default) or violation in the performance of any obligation, agreement or condition
contained in any bond, debenture, note or other evidence of indebtedness or in any
agreement, indenture, lease or other instrument to which it is a party or by which it or any
of its properties may be bound, which breach, default or violation, in the case of clause
(ii) or (iii), would, if continued, reasonably be expected to have a Material Adverse Effect
or materially impair the ability of any of the Oxford Entities to consummate the
transactions (including the Transactions) contemplated under this Agreement.
(bb) Conformity of Units to Description in the most recent Preliminary Prospectus. The
Units, when issued and delivered in accordance with the terms of the Partnership Agreement
and this Agreement against payment therefor as provided therein and herein, will conform in
all material respects to the description thereof contained in the Registration Statement,
the Pricing Disclosure Package and the Prospectus.
(cc) No Integration. The Partnership has not sold or issued any securities that would
be integrated with the offering of the Units contemplated by this Agreement pursuant to the
Securities Act, the Rules and Regulations or the interpretations thereof by the Commission.
(dd) No Material Adverse Change. None of the Oxford Entities has sustained, since the
date of the latest audited financial statements included in the Pricing Disclosure Package,
any loss or interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, and since such date, except as disclosed in the Pricing Disclosure
Package and the Prospectus, there has not been any change in the capitalization or increase
in the long-term debt of the Partnership or any of its Subsidiaries, or any adverse change
in or affecting the condition (financial or other), results of operations, partners’
capital, properties, management, business or prospects of the Partnership and its
Subsidiaries, taken as a whole, in each case except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
(ee) Conduct of Business. Except as disclosed in the Pricing Disclosure Package and
the Prospectus, since the date as of which information is given in the Pricing Disclosure
Package, none of the Oxford Entities has (i) incurred any liability or obligation, direct or
contingent, that, individually or in the aggregate, is material to the Partnership and its
Subsidiaries, taken as a whole, other than liabilities and obligations
12
that were incurred in
the ordinary course of business, (ii) entered into any transaction not in the ordinary
course of business that, individually or in the aggregate, is material to the Partnership
and its Subsidiaries, taken as a whole, or (iii) issued or granted any securities; and
neither the Partnership nor any of its Subsidiaries has declared, paid or made any dividend
or distribution of any class of securities.
(ff) Financial Statements. The historical financial statements (including the related
notes and supporting schedules) included in the Pricing Disclosure Package (i) comply in all
material respects with the applicable requirements under the Securities Act and the Exchange
Act, (ii) present fairly the financial condition, results of operations and cash flows of
the entities purported to be shown thereby at the dates and for the periods indicated, and
(iii) have been prepared in accordance with accounting principles generally accepted in the
United States applied on a consistent basis throughout the periods involved. The summary
historical and pro forma financial and operating data included in the Pricing Disclosure
Package under the caption “Summary—Summary Historical and Pro Forma Financial and Operating
Data” and the selected historical and pro forma financial and operating data included in the
Pricing Disclosure Package under the caption “Selected Historical and Pro Forma Consolidated
Financial and Operating Data” are fairly presented and prepared on a basis consistent with
the audited and unaudited historical financial statements and pro forma financial
statements, as applicable, from which they have been derived. The other financial
information of the Partnership and its Subsidiaries, including non-GAAP financial measures,
contained in the Pricing Disclosure Package has been derived from the accounting records of
the Partnership and its Subsidiaries, and fairly presents the information purported to be
shown thereby.
(gg) Pro Forma Financial Statements. The pro forma financial statements included in
the Pricing Disclosure Package include assumptions that provide a reasonable basis for
presenting the significant effects directly attributable to the transactions and events
described therein, the related pro forma adjustments give appropriate effect to those
assumptions, and the pro forma adjustments reflect the proper application of those
adjustments to the historical financial statement amounts in the pro forma financial
statements included in the Pricing Disclosure Package. The pro forma financial statements
included in the Pricing Disclosure Package comply as to form in all material respects with
the applicable requirements of Regulation S-X under the Securities Act.
(hh) Independent Registered Public Accounting Firm. Xxxxx Xxxxxxxx LLP, who has
certified the consolidated financial statements of the Partnership and its Subsidiaries (and
of the Partnership’s predecessor and its subsidiaries) included in the Pricing Disclosure
Package, whose report appears in the Pricing Disclosure Package and who has delivered the
initial letter referred to in Section 7(g) hereof, are independent public accountants as
required by the Securities Act and the Rules and Regulations; and Ernst & Young LLP, who has
certified the combined financial statements for the carved-out surface mining operations of
Phoenix Coal Inc., an Ontario (Canada) corporation, included in the Pricing Disclosure
Package, whose report appears in the Pricing Disclosure Package and who has delivered the
initial letter referred to in Section 7(i) hereof, are independent public accountants under
Rule 101 of the AICPA’s Code of Professional Conduct, and its interpretations and rulings.
13
(ii) Reserve Engineer. Xxxx X. Xxxx Company (the “Engineer”), whose reserve
evaluations are referenced or appear, as the case may be, in the Pricing Disclosure Package
were, as of March 3, 2010, and are, as of the date hereof, independent engineers with
respect to the Partnership; and the historical information underlying the estimates of the
reserves of the Partnership supplied by the Partnership to the Engineer for the purposes of
preparing the reserve report, dated as of March 3, 2010, referenced in the Pricing
Disclosure Package (the “Reserve Report”), was true and correct in all material respects on
the date of the Reserve Report and was prepared in all material respects in accordance with
customary industry practices.
(jj) Title to Properties. Each Oxford Entity has good and indefeasible title to all
real property and good title to all personal property described in the Pricing Disclosure
Package as owned of record by them, in each case free and clear of all Liens, except (i) as
are described in the Pricing Disclosure Package or (ii) as would not reasonably be expected
to have, individually or in the aggregate, a material adverse effect upon the ability of the
Partnership and its Subsidiaries, taken as a whole, to conduct their businesses in all
material respects as currently conducted and as contemplated in the Pricing Disclosure
Package; provided that, with respect to real property and buildings held under lease by the
Oxford Entities, such real property and buildings are held under valid and subsisting and
enforceable leases with such exceptions as do not materially interfere with the use of the
properties of the Partnership and its Subsidiaries, taken as a whole, as currently used and
as contemplated in the Pricing Disclosure Package.
(kk) Rights of Way. At each Delivery Date, each of the Oxford Entities will have such
consents, easements, rights-of-way or licenses from any person (collectively,
“rights-of-way”) as are necessary to conduct its business in the manner described in the
Pricing Disclosure Package, subject to such qualifications as may be set forth in the
Pricing Disclosure Package and except for such rights-of-way the failure of which to have
obtained, would not reasonably be expected to have, individually or in the aggregate, a
material adverse effect upon the ability of the Partnership and its Subsidiaries, taken as a
whole, to conduct their businesses in all material respects as currently conducted and as
contemplated in the Pricing Disclosure Package; at each Delivery Date, each Oxford Entity
will have fulfilled and performed all its material obligations with respect to such
rights-of-way and no event has occurred which allows, or after notice or lapse of time would
allow, revocation or termination thereof or would result in any impairment of the rights of
the holder of any such rights-of-way, except for such failures to perform, revocations,
terminations and impairments that would not reasonably be expected to have a material
adverse effect upon the ability of the Partnership and its Subsidiaries, taken as a whole,
to conduct their businesses in all material respects as currently conducted and as
contemplated in the Pricing Disclosure Package, subject in each case to such qualification
as may be set forth in the Pricing Disclosure Package.
(ll) Insurance. One or more of the Oxford Entities maintain insurance covering their
properties, operations, personnel and businesses against such losses and risks as are
reasonably adequate to protect them and their businesses in a manner consistent with other
businesses similarly situated. None of the Oxford Entities has
14
received notice from any
insurer or agent of such insurer that material capital improvements or other material
expenditures will have to be made in order to continue such insurance, and all such
insurance is outstanding and duly in force on the date hereof and will be outstanding and
duly in force on each Delivery Date.
(mm) Statistical and Market Related Data. The statistical and market-related data
included in the Pricing Disclosure Package under the captions “Summary,” “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” “The Coal
Industry” and “Business” are based on or derived from sources that the Partnership Parties
believe to be reliable and accurate in all material respects.
(nn) Investment Company. None of the Oxford Entities is now, or after the sale of the
Units to be sold by the Partnership hereunder and the application of the net proceeds
therefrom as described under “Use of Proceeds” in the Pricing Disclosure Package and the
Prospectus, none of them will be, (i) an “investment company” within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company Act”), and the rules and
regulations of the Commission thereunder or (ii) a “business development company” (as
defined in Section 2(a)(48) of the Investment Company Act).
(oo) Litigation. Except as described in the Pricing Disclosure Package, there is (i)
no action, suit or proceeding before or by any court, arbitrator or governmental agency,
body or official, domestic or foreign, now pending or, to the knowledge of any of the
Partnership Parties, threatened, to which any of the Oxford Entities is or may be a party or
to which the business or property of any of the Oxford Entities is or may be subject, and
(ii) no injunction, restraining order or order of any nature issued by a federal or state
court or foreign court of competent jurisdiction to which any of the Oxford Entities is or
may be subject and that would reasonably be expected to (A) individually or in the aggregate
have a Material Adverse Effect, or (B) prevent or result in the suspension of the offering
and issuance of the Units.
(pp) No Omitted Descriptions. There are no legal or governmental proceedings pending
or, to the knowledge of the Partnership Parties, threatened, against any of the Oxford
Entities, or to which any of the Oxford Entities is a party, or to which any of their
respective properties or assets is subject, that are required to be described in the
Registration Statement or the Pricing Disclosure Package but are not described as required,
and there are no agreements, contracts, indentures, leases or other instruments that are
required to be described in the Registration Statement or the Pricing Disclosure Package or
to be filed as an exhibit to the Registration Statement that are not described or filed as
required by the Securities Act, the Rules and Regulations, the Exchange Act or the rules and
regulations thereunder.
(qq) Certain Relationships. Except as described in the Pricing Disclosure Package, no
relationship, direct or indirect, exists between or among the Partnership and its
Subsidiaries, on the one hand, and the directors, officers, partners, members, customers or
suppliers of any of the Oxford Entities, on the other hand, that is required to be described
in the Pricing Disclosure Package which is not so described.
15
(rr) No Labor Disputes. No labor dispute with the employees that are engaged in the
business of the Partnership or its Subsidiaries exists or, to the knowledge of the
Partnership Parties, is imminent or threatened that would reasonably be expected to have a
Material Adverse Effect.
(ss) ERISA. (i) Each “employee benefit plan” (within the meaning of Section 3(3) of
the Employee Retirement Security Act of 1974, as amended (“ERISA”)) for which any of the
Oxford Entities would have any material liability, excluding any multiemployer plan (within
the meaning of Section 4001(a)(3) of ERISA) (each a “Plan”) has been maintained in material
compliance with its terms and with the requirements of all applicable statutes, rules and
regulations including ERISA and the Code; (ii) with respect to each Plan subject to Title IV
of ERISA (a) no “reportable event” (within the meaning of Section 4043(c) of ERISA) has
occurred or is reasonably expected to occur, (b) no “accumulated funding deficiency” (within
the meaning of Section 302 of ERISA or Section 412 of the Internal Revenue Code of 1986, as
amended (the “Code”)), whether or not waived, has occurred or is reasonably expected to
occur, (c) the fair market value of the assets under each Plan exceeds the present value of
all benefits accrued under such Plan (determined based on those assumptions used to fund
such Plan) and (d) none of the Oxford Entities has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA (other than contributions to the Plan or premiums to
the Pension Benefit Guaranty Corporation in the ordinary course and without default) in
respect of a Plan (including a “multiemployer plan”, within the meaning of Section
4001(a)(3) of ERISA); and (iii) each Plan that is intended to be qualified under Section
401(a) of the Code has been determined by the Internal Revenue Service to be so qualified
and nothing has occurred, whether by action or by failure to act, that would reasonably be
expected to cause the loss of such qualification.
(tt) Tax Returns. Each of the Oxford Entities has filed (or has obtained extensions
with respect to) all material federal, state and foreign income and franchise tax returns
required to be filed through the date hereof, which returns are complete and correct in all
material respects, and has timely paid all taxes shown to be due pursuant to such returns,
other than those (i) that are being contested in good faith and for which adequate reserves
have been established in accordance with generally accepted accounting principles or (ii)
that, if not paid, would not reasonably be expected to result in a Material Adverse Effect.
(uu) Books and Records. Each of the Oxford Entities (i) makes and keeps accurate books
and records and (ii) maintains effective internal control over financial reporting as
defined in Rule 13a-15 under the Exchange Act and a system of internal accounting controls
sufficient to provide reasonable assurance that (A) transactions are executed in accordance
with management’s general or specific authorization, (B) transactions are recorded as
necessary to permit preparation of financial statements in conformity with accounting
principles generally accepted in the United States and to maintain accountability for its
assets, (C) access to the assets of the Partnership and its Subsidiaries is permitted only
in accordance with management’s general or specific authorization and (D) the recorded
accountability for assets is compared with existing
16
assets at reasonable intervals and
appropriate action is taken with respect to any differences.
(vv) Disclosure Controls and Procedures. (i) Each Oxford Entity has established and
maintains disclosure controls and procedures (to the extent required by and as such term is
defined in Rule 13a-15 under the Exchange Act), (ii) such disclosure controls and procedures
are designed to ensure that the information required to be disclosed by the Partnership in
the reports it files or will file or submit under the Exchange Act, as applicable, is
accumulated and communicated to management of the Partnership, including the General
Partner’s respective principal executive officers and principal financial officers, as
appropriate, to allow timely decisions regarding required disclosure to be made and (iii)
such disclosure controls and procedures are effective in all material respects to perform
the functions for which they were established to the extent required by Rule 13a-15 of the
Exchange Act.
(ww) No Changes in Internal Controls. Since the date of the most recent balance sheet
of the Partnership reviewed or audited by Xxxxx Xxxxxxxx LLP and the audit committee of the
Board of Directors of the General Partner, (i) none of the Oxford Entities has been advised
by Xxxxx Xxxxxxxx LLP of (A) any significant deficiencies in the design or operation of
internal controls over financial reporting that are reasonably likely to adversely affect
the ability of the Oxford Entities to record, process, summarize and report financial data,
or any material weaknesses in internal controls over financial reporting affecting any of
the Oxford Entities, or (B) any fraud, whether or not material, that involves management or
other employees who have a significant role in the internal controls over financial
reporting of the Oxford Entities, and (ii) since that date, there have been no significant
changes in the internal controls of any of the Oxford Entities that materially affected or
are reasonably likely to materially affect any internal controls over financial reporting
relating to any of the Oxford Entities.
(xx) Xxxxxxxx-Xxxxx Act of 2002. At each Delivery Date, the Partnership and, to the
knowledge of the Partnership Parties, the General Partner’s directors or officers, in their
capacities as such, will be in compliance in all material respects with all applicable
provisions of the Xxxxxxxx-Xxxxx Act of 2002, the rules and regulations promulgated in
connection therewith and the rules of the New York Stock Exchange that are effective and
applicable to the Partnership.
(yy) Permits. Each of the Oxford Entities has such permits, licenses, patents,
franchises, certificates of need and other approvals or authorizations of governmental or
regulatory authorities (“Permits”) as are necessary under applicable law to be the record
holders of their properties and conduct their businesses in the manner described in the
Pricing Disclosure Package, except for any of the foregoing that would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect; each of the
Oxford Entities has fulfilled and performed all of its obligations with respect to the
Permits, and no event has occurred that allows, or after notice or lapse of time would
allow, revocation or termination thereof or results in any other impairment of the rights of
the holder of any such Permits, except as described in the Pricing Disclosure Package or
17
for
any of the foregoing that would not reasonably be expected to have a Material Adverse
Effect.
(zz) Intellectual Property. Each of the Oxford Entities is the record holder of or
possesses adequate rights to use all material patents, patent applications, trademarks,
service marks, trade names, trademark registrations, service xxxx registrations, copyrights,
licenses, know-how, software, systems and technology (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or
procedures) necessary for the conduct of its business and has no reason to believe that the
conduct of its business will conflict with, and none of the Oxford Entities has received any
notice of any claim of conflict with, any such rights of others.
(aaa) Environmental Laws. Except as described in the Pricing Disclosure Package, each
of the Oxford Entities (i) is, and at all times prior hereto has been, in compliance with
all laws, regulations, ordinances, rules, orders, judgments, decrees, permits or other legal
requirements of any governmental authority, including without limitation any international,
national, state, provincial, regional, or local authority, relating to the protection of
human health or safety, the environment, or natural resources, or imposing liability or
standards of conduct concerning any Hazardous Materials (as defined below) (“Environmental
Laws”) applicable to such entity, which compliance includes, without limitation, obtaining,
maintaining and complying with all permits and authorizations and approvals required by
Environmental Laws to conduct their respective businesses, (ii) has received all permits
required of them under applicable Environmental Laws to conduct their respective businesses,
(iii) is in compliance with all terms and conditions of any such permits and (iv) has not
received notice of any actual or alleged violation of Environmental Law or of liability in
connection with the release into the environment of any Hazardous Material, except where
such noncompliance with Environmental Laws, failure to receive required permits, failure to
comply with the terms and conditions of such permits or receipt of notice would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Except as described in the Pricing Disclosure Package, (x) there are no proceedings that are
pending, or known to be contemplated, against any of the Oxford Entities under Environmental
Laws in which a governmental authority is also a party, other than such proceedings
regarding which it is reasonably believed no monetary sanctions of $100,000 or more will be
imposed and (y) none of the Oxford Entities anticipates material capital expenditures
relating to Environmental Laws other than those incurred in the ordinary course of business
for the purchase of equipment used in mining and reclamation activities, that would,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
The term “Hazardous Material” means (A) any “hazardous substance” as defined in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended,
(B) any “hazardous waste” as defined in the Resource Conservation and Recovery Act, as
amended, (C) any petroleum or petroleum product, (D) any polychlorinated biphenyl and (E)
any pollutant or contaminant or hazardous, dangerous or toxic chemical, material, waste or
substance regulated under or within the meaning of any other Environmental Law.
18
(bbb) Discrimination. None of the Oxford Entities is in violation of or has received
notice of any violation with respect to any federal or state law relating to discrimination
in the hiring, promotion or pay of employees, nor any applicable federal or state wage and
hour laws, the violation of any of which would reasonably be expected to have a Material
Adverse Affect.
(ccc) FCPA. None of the Oxford Entities, nor, to the knowledge of the Partnership
Parties, any director, officer, employee or agent of the Oxford Entities, 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; or (iii) violated
or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977 (the
“FCPA”).
(ddd) Compliance with Money Laundering Laws. The operations of the Oxford Entities 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 Oxford Entities with respect to the Money Laundering Laws is
pending or, to the knowledge of the Partnership Parties, threatened, except, in each case,
as would not reasonably be expected to have a Material Adverse Effect.
(eee) OFAC. None of the Oxford Entities nor, to the knowledge of the Partnership
Parties, any director, officer, agent, employee or affiliate of the Oxford Entities is
currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control
of the U.S. Treasury Department (“OFAC”); and the Oxford Entities will not directly or
indirectly use the proceeds of the offering, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.
(fff) Directed Unit Sales. None of the Directed Units distributed in connection with
the Directed Unit Program (each as defined in Section 3 hereof) will be offered or sold
outside of the United States. The Partnership has not offered, or caused the DUP Manager (as
defined in Section 3 hereof) to offer, Units to any person pursuant to the Directed Unit
Program (as defined in Section 3 hereof) with the specific intent to unlawfully influence
(i) a customer or supplier of any of the Oxford Entities to alter the customer’s or
supplier’s level or type of business with any such entity or (ii) a trade journalist or
publication to write or publish favorable information about any of the Oxford Entities or
their respective businesses or products.
(ggg) No Distribution of Other Offering Materials. None of the Oxford Entities has
distributed or, prior to the later to occur of any Delivery Date and completion of the
19
distribution of the Units, will distribute any offering material in connection with the
offering and sale of the Units other than any Preliminary Prospectus, the Prospectus, any
Issuer Free Writing Prospectus to which the Representatives have consented in accordance
with Section 1(h) or 5(a)(v) hereof, any other materials, if any, permitted by the
Securities Act, including Rule 134 of the Rules and Regulations, and, in connection with the
Directed Unit Program described in Section 3 hereof, the enrollment materials prepared by
the DUP Manager on behalf of the Partnership.
(hhh) Market Stabilization. None of the Oxford Entities or any of their affiliates has
taken, directly or indirectly, any action designed to or which has constituted or which
would reasonably be expected to cause or result, under the Exchange Act or otherwise, in
stabilization or manipulation of the price of any securities of the Partnership or to
facilitate the sale or resale of the Units.
(iii) Listing on the New York Stock Exchange. The Units have been approved for listing
on the New York Stock Exchange, subject to official notice of issuance.
Any certificate signed by any officer of the Partnership Parties and delivered to the
Representatives or counsel for the Underwriters in connection with the offering of the Units shall
be deemed a representation and warranty by such entity, as to matters covered thereby, to each
Underwriter.
2. Purchase of the Units by the Underwriters. On the basis of the representations and
warranties contained in, and subject to the terms and conditions of, this Agreement, the
Partnership agrees to sell 8,750,000 Firm Units to the several Underwriters, and each of the
Underwriters, severally and not jointly, agrees to purchase the number of Firm Units set forth
opposite that Underwriter’s name in Schedule 1 hereto. The respective purchase obligations of the
Underwriters with respect to the Firm Units shall be rounded among the Underwriters to avoid
fractional Units, as the Representatives may determine.
In addition, the Partnership grants to the Underwriters an option to purchase up to 1,312,500
Option Units. Such option (the “Option”) is exercisable in the event that the Underwriters sell
more Common Units than the number of Firm Units in the offering and as set forth in Section 4
hereof. Each Underwriter agrees, severally and not jointly, to purchase the number of Option Units
(subject to such adjustments to eliminate fractional Units as the Representatives may determine)
that bears the same proportion to the total number of Option Units to be sold on such Delivery Date
as the number of Firm Units set forth in Schedule 1 hereto opposite the name of such
Underwriter bears to the total number of Firm Units.
The price of both the Firm Units and any Option Units purchased by the Underwriters shall be
$17.2975 per Common Unit.
The Partnership shall not be obligated to deliver any of the Firm Units or Option Units to be
delivered on the applicable Delivery Date, except upon payment for all such Units to be purchased
on such Delivery Date as provided herein.
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3. Offering of Units by the Underwriters. Upon authorization by the Representatives of
the release of the Firm Units, the several Underwriters propose to offer the Firm Units for sale
upon the terms and conditions to be set forth in the Prospectus.
It is understood that, in connection with the proposed offering of the Units, the Partnership
has requested Citigroup Global Markets Inc. (the “DUP Manager”) to administer a directed unit
program (the “Directed Unit Program”), under which up to 5% of the Firm Units (the “Directed
Units”) to be purchased by the several Underwriters will initially be reserved for offer and sale
by the DUP Manager, upon the terms and conditions to be set forth in the Pricing Disclosure Package
and subject to the terms of this Agreement, the applicable rules, regulations and interpretations
of FINRA and all other applicable laws, rules and regulations, to the officers, directors and
employees of the General Partner and certain of their respective friends and families (“Directed
Unit Participants”) who have heretofore delivered to the DUP Manager offers to purchase Firm Units
in form satisfactory to the DUP Manager and that any allocation of such Firm Units among such
persons will be made in accordance with timely directions received by the DUP Manager from the
Partnership; provided that under no circumstances will the DUP Manager or any Underwriter be liable
to the Partnership or to any such person for any action taken or omitted in good faith in
connection with such Directed Unit Program. It is further understood that any Directed Units not
affirmatively reconfirmed for purchase by any Directed Unit Participant in the Directed Unit
Program by 7:00 A.M., New York City time, on the first business day following the date hereof or
otherwise are not purchased by such persons will be offered by the Underwriters to the public upon
the terms and conditions set forth in the Pricing Disclosure Package.
The Partnership agrees to pay all reasonable fees and disbursements incurred by the
Underwriters in connection with the Directed Unit Program and any stamp duties or other taxes
incurred by the Underwriters in connection with the Directed Unit Program.
4. Delivery of and Payment for the Units. Delivery of and payment for the Firm Units shall be
made at 10:00 A.M., New York City time, on July 19, 2010 or on such other date or at such other
time as shall be determined by agreement between the Representatives and the Partnership. This date
and time are sometimes referred to as the “Initial Delivery Date.” Delivery of the Firm Units shall
be made to the Representatives for the account of each Underwriter against payment by the several
Underwriters through the Representatives of the respective aggregate purchase prices of the Firm
Units being sold by the Partnership to or upon the order of the Partnership by wire transfer in
immediately available funds to the accounts specified by the Partnership. The Partnership shall
deliver the Firm Units through the facilities of The Depository Trust Company unless the
Representatives shall otherwise instruct. Time shall be of the essence, and delivery on the date
and at the time and place specified pursuant to this Agreement is a further condition of the
obligation of each Underwriter hereunder.
The Option granted in Section 2 hereof will expire 30 days after the date of this Agreement
and may be exercised in whole or from time to time in part by written notice being
given to the Partnership by the Representatives; provided that if such date falls on a day
that is not a business day, the Option granted in Section 2 hereof will expire on the next
succeeding business day. Such notice shall set forth the aggregate number of Option Units as to
which the option is being exercised, the names in which the Option Units are to be registered, the
21
denominations in which the Option Units are to be issued and the date and time, as determined by
the Representatives, when the Option Units are to be delivered; provided, however, that this date
and time shall not be earlier than the Initial Delivery Date nor earlier than the second business
day after the date on which the Option shall have been exercised nor later than the fifth business
day after the date on which the Option shall have been exercised. Each date and time the Option
Units are delivered is sometimes referred to as an “Option Unit Delivery Date,” and the Initial
Delivery Date and any Option Unit Delivery Date are sometimes each referred to as a “Delivery
Date.”
Delivery of the Option Units by the Partnership and payment for the Option Units by the
several Underwriters through the Representatives shall be made on the date specified in the
corresponding notice described in the preceding paragraph as the Option Unit Delivery Date, at
10:00 A.M., New York City time, or on such other date or at such other time as shall be determined
by agreement between the Representatives and the Partnership. On the Option Unit Delivery Date, the
Partnership shall deliver or cause to be delivered the Option Units to the Representatives for the
account of each Underwriter against payment by the several Underwriters through the Representatives
of the respective aggregate purchase prices of the Option Units being sold by the Partnership to or
upon the order of the Partnership by wire transfer in immediately available funds to the accounts
specified by the Partnership. The Partnership shall deliver the Option Units through the facilities
of the Depository Trust Company unless the Representatives shall otherwise instruct. Time shall be
of the essence, and delivery on the date and at the time and place specified pursuant to this
Agreement is a further condition of the obligation of each Underwriter hereunder.
5. Further Agreements of the Partnership Parties and the Underwriters. (a) Each of the
Partnership Parties, jointly and severally, covenants and agrees:
(i) Preparation of Prospectus and Registration Statement. To prepare the
Prospectus in a form approved by the Representatives and to file such Prospectus
pursuant to Rule 424(b) of the Rules and Regulations not later than the Commission’s
close of business on the second business day following the execution and delivery of
this Agreement; to make no further amendment or any supplement to the Registration
Statement or the Prospectus prior to the last Delivery Date except as provided
herein; to advise the Representatives, promptly after it receives notice thereof, of
the time when any amendment or supplement to the Registration Statement or the
Prospectus has been filed and to furnish the Representatives with copies thereof; to
advise the Representatives, promptly after it receives notice thereof, of the
issuance by the Commission of any stop order or of any order preventing or
suspending the use of the Prospectus or any Issuer Free Writing Prospectus, of the
suspension of the qualification of the Units for offering or sale in any
jurisdiction, of the initiation or threatening of any proceeding or examination for
any such purpose or of any request by the Commission for the amending or supplementing of the Registration Statement, the Prospectus or any
Issuer Free Writing Prospectus or for additional information; and, in the event of
the issuance of any stop order or of any order preventing or suspending the use of
the Prospectus or any Issuer Free Writing Prospectus or suspending any such
qualification, to use promptly its best efforts to obtain its withdrawal;
22
(ii) Signed Copies of Registration Statement. To furnish promptly to each of
the Representatives and to counsel for the Underwriters a signed copy of the
Registration Statement as originally filed with the Commission, and each amendment
thereto filed with the Commission, including all consents and exhibits filed
therewith;
(iii) Copies of Documents to Underwriters. To deliver promptly to the
Representatives such number of the following documents as the Representatives shall
reasonably request: (A) conformed copies of the Registration Statement as
originally filed with the Commission and each amendment thereto (in each case
excluding exhibits other than this Agreement), (B) each Preliminary Prospectus, the
Prospectus and any amended or supplemented Prospectus and (C) each Issuer Free
Writing Prospectus; and, if the delivery of a prospectus is required at any time
after the date hereof in connection with the offering or sale of the Units or any
other securities relating thereto and if at such time any events shall have occurred
as a result of which the Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were
made when such Prospectus is delivered, not misleading, or, if for any other reason
it shall be necessary to amend or supplement the Prospectus in order to comply with
the Securities Act, to notify the Representatives and, upon their request, to file
such document and to prepare and furnish without charge to each Underwriter and to
any dealer in securities as many copies as the Representatives may from time to time
reasonably request of an amended or supplemented Prospectus that will correct such
statement or omission or effect such compliance;
(iv) Filing of Amendment or Supplement. To file promptly with the Commission
any amendment or supplement to the Registration Statement or the Prospectus that
may, in the judgment of the Partnership or the Representatives, be required by the
Securities Act or requested by the Commission; prior to filing with the Commission
any amendment or supplement to the Registration Statement or the Prospectus, to
furnish a copy thereof to the Representatives and counsel for the Underwriters and
obtain the consent of the Representatives to the filing, which consent shall not be
unreasonably withheld;
(v) Issuer Free Writing Prospectus. Not to make any offer relating to the
Units that would constitute an Issuer Free Writing Prospectus without the prior
written consent of the Representatives; to comply with all applicable requirements
of Rule 433 of the Rules and Regulations with respect to any Issuer Free Writing
Prospectus (including retaining in accordance with such rule any
Issuer Free Writing Prospectuses not required to be filed pursuant thereto);
and if at any time after the date hereof any events shall have occurred as a result
of which any Issuer Free Writing Prospectus, as then amended or supplemented, would
conflict with the information in the Registration Statement, the Pricing Disclosure
Package or the Prospectus or would include an untrue statement of a material fact or
omit to state any material fact necessary in order to make the
23
statements therein, in the light of the circumstances under which they were made, not misleading, or, if
for any other reason it shall be necessary to amend or supplement any Issuer Free
Writing Prospectus, to notify the Representatives and, upon their request, to file
such document and to prepare and furnish without charge to each Underwriter as many
copies as the Representatives may from time to time reasonably request of an amended
or supplemented Issuer Free Writing Prospectus that will correct such conflict,
statement or omission or effect such compliance;
(vi) Reports to Security Holders. As soon as practicable after the Effective
Date (it being understood that the Partnership shall have until at least 410 days
or, if the fourth quarter following the fiscal quarter that includes the Effective
Date is the last fiscal quarter of the Partnership’s fiscal year, 455 days after the
end of the Partnership’s current fiscal quarter), to make generally available to the
Partnership’s security holders and to deliver to the Representatives an earnings
statement of the Partnership and its Subsidiaries (which need not be audited)
complying with Section 11(a) of the Securities Act and the Rules and Regulations
(including, at the option of the Partnership, Rule 158 of the Rules and
Regulations);
(vii) Qualifications. Promptly from time to time to take such action as the
Representatives may reasonably request to qualify the Units for offering and sale
under the securities laws of such jurisdictions as the Representatives may request
and to comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the
distribution of the Units; provided that in connection therewith the Partnership
shall not be required to (i) qualify as a foreign limited partnership in any
jurisdiction in which it would not otherwise be required to so qualify, (ii) file a
general consent to service of process in any such jurisdiction or (iii) subject
itself to taxation in any jurisdiction in which it would not otherwise be subject;
(viii) Lock-Up Period; Lock-Up Letters. For a period commencing on the date
hereof and ending on the 180th day after the date of the Prospectus (the “Lock-Up
Period”), not to, directly or indirectly, (1) offer for sale, sell, pledge or
otherwise dispose of (or enter into any transaction or device that is designed to,
or could be expected to, result in the disposition by any person at any time in the
future of) any Common Units or securities convertible into or exchangeable for
Common Units (other than (A) the Units and Common Units or securities convertible
into or exchangeable for Common Units granted or issued pursuant to employee benefit
plans, qualified option plans or other employee or director compensation plans or
arrangements existing on the date hereof, or (B) Common
Units granted to Xxxxx X. Xxxxx as disclosed in the Pricing Disclosure
Package), or sell or grant options, rights or warrants with respect to any Common
Units or securities convertible into or exchangeable for Common Units (other than
the grant of options pursuant to plans existing on the date hereof), (2) enter into
any swap or other derivatives transaction that transfers to another, in whole or in
part, any of the economic benefits or risks of being the record holder of such Common
24
Units, whether any such transaction described in clause (1) or (2) above is
to be settled by delivery of Common Units or other securities, in cash or otherwise,
(3) file or cause to be filed a registration statement, including any amendments,
with respect to the registration of any Common Units or securities convertible,
exercisable or exchangeable into Common Units or any other securities of the
Partnership (other than any registration statement on Form S-8) or (4) publicly
disclose the intention to do any of the foregoing, in each case without the prior
written consent of the Representatives, on behalf of the Underwriters, and to cause
the executive officers and directors of the General Partner and the unitholders of
the Partnership set forth on Schedule 2 hereto to furnish to the
Representatives, prior to the Initial Delivery Date, an executed letter or letters,
substantially in the form of Exhibit A hereto (the “Lock-Up Agreements”);
notwithstanding the foregoing, if (1) during the last 17 days of the Lock-Up Period,
the Partnership issues an earnings release or material news or a material event
relating to the Partnership occurs, or (2) prior to the expiration of the Lock-Up
Period, the Partnership announces that it will release earnings results during the
16-day period beginning on the last day of the Lock-Up Period, then the restrictions
imposed in this paragraph shall continue to apply until the expiration of the 18-day
period beginning on the issuance of the earnings release or the announcement of the
material news or the occurrence of the material event, unless the Representatives,
on behalf of the Underwriters, waive such extension in writing;
(ix) Application of Proceeds. To apply the net proceeds from the sale of the
Units being sold by the Partnership as set forth in the Prospectus; and
(x) Directed Unit Program. In connection with the Directed Unit Program, to
ensure that the Directed Units will be restricted from sale, transfer, assignment,
pledge or hypothecation to the same extent as sales and dispositions of Common Units
by the Partnership are restricted pursuant to Section 5(a)(viii) hereof, and the
Representatives will notify the Partnership as to which Directed Unit Participants
will need to be so restricted. At the request of the DUP Manager, the Partnership
will direct the transfer agent to place stop transfer restrictions upon such
securities for such period of time as is consistent with Section 5(a)(viii) hereof;
and
(b) Each Underwriter severally agrees that such Underwriter shall not include any
“issuer information” (as defined in Rule 433 of the Rules and Regulations) in any “free
writing prospectus” (as defined in Rule 405 of the Rules and Regulations) used or referred
to by such Underwriter without the prior consent of the Partnership (any such issuer
information with respect to whose use the Partnership has given its consent,
“Permitted Issuer Information”); provided that (i) no such consent shall be required
with respect to any such issuer information contained in any document filed by the
Partnership with the Commission prior to the use of such free writing prospectus and (ii)
“issuer information,” as used in this Section 5(b), shall not be deemed to include
information prepared by or on behalf of such Underwriter on the basis of or derived from
issuer information.
25
6. Expenses. Each of the Partnership Parties covenants and agrees to pay or cause to be paid
all costs, expenses, fees and taxes incident to and in connection with (a) the authorization,
issuance, sale and delivery of the Units, and the preparation, printing, issuance and delivery of
certificates for the Units, including any stamp or transfer taxes in connection with the original
issuance and sale of the Units; (b) the preparation, printing and filing under the Securities Act
of the Registration Statement (including any exhibits thereto), any Preliminary Prospectus, the
Prospectus, any Issuer Free Writing Prospectus and any amendment or supplement thereto; (c) the
distribution of the Registration Statement (including any exhibits thereto), any Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus and any amendment or supplement
thereto, all as provided in this Agreement; (d) the production and distribution of this Agreement,
any supplemental agreement among Underwriters, and any other related documents in connection with
the offering, purchase, sale and delivery of the Units; (e) services provided by the transfer agent
or registrar; (f) any filing fees in connection with the required review by FINRA of the terms of
sale of the Units; (g) the listing of the Units on the New York Stock Exchange or any other
exchange; (h) the qualification of the Units under the securities laws of the several jurisdictions
as provided in Section 5(a)(vii) and the preparation, printing and distribution of a Blue Sky
Memorandum (including the reasonable fees and expenses of counsel to the Underwriters related
thereto); (i) the preparation, printing and distribution of one or more versions of the Preliminary
Prospectus and the Prospectus for distribution in Canada, including in the form of a Canadian
“wrapper” (including related fees and expenses of Canadian counsel to the Underwriters); (j) the
offer and sale of Units by the Underwriters in connection with the Directed Unit Program, including
the reasonable fees and expenses of counsel to the Underwriters related thereto, the costs and
expenses of preparation, printing and distribution of the Directed Unit Program materials and all
stamp duties or other taxes incurred by the Underwriters in connection with the Directed Unit
Program; (k) the investor presentations on any “road show” undertaken in connection with the
marketing of the Units, including, without limitation, expenses associated with any electronic
roadshow, travel and lodging expenses of the Representatives and officers of the General Partner
and 50% of the cost of any aircraft chartered in connection with the road show; and (l) all other
costs and expenses incident to the performance of the obligations of the Partnership under this
Agreement; provided that, except as provided in this Section 6 and in Section 11, the Underwriters
shall pay their own costs and expenses, including the costs and expenses of their counsel, any
transfer taxes on the Units which they may sell, the expenses of advertising any offering of the
Units made by the Underwriters and 50% of the cost of any aircraft chartered in connection with the
roadshow. The Partnership agrees to pay to Barclays Capital Inc. and Citigroup Global Markets Inc.
a structuring fee in an amount equal to 0.5% of the gross proceeds from the sale of the Units for
the evaluation, analysis and structuring of the Partnership.
7. Conditions of Underwriters’ Obligations. The respective obligations of the Underwriters
hereunder are subject to the accuracy, when made and on each Delivery Date, of the representations
and warranties of the Partnership Parties contained herein, to the performance by the Partnership
Parties of their obligations hereunder, and to each of the following additional terms and
conditions:
(a) The Prospectus shall have been timely filed with the Commission in accordance with
Section 5(a)(i) hereof; the Partnership Parties shall have complied with all filing
requirements applicable to any Issuer Free Writing Prospectus used or referred
26
to after the date hereof; no stop order suspending the effectiveness of the Registration Statement or
preventing or suspending the use of the Prospectus or any Issuer Free Writing Prospectus
shall have been issued and no proceeding or examination for such purpose shall have been
initiated or threatened by the Commission; and any request of the Commission for inclusion
of additional information in the Registration Statement or the Prospectus or otherwise shall
have been complied with.
(b) No Underwriter shall have discovered and disclosed to the Partnership Parties on or
prior to such Delivery Date that the Registration Statement, the Prospectus or the Pricing
Disclosure Package, or any amendment or supplement thereto, contains an untrue statement of
a fact which, in the opinion of Xxxxxxx Xxxxx LLP, counsel to the Underwriters, is material
or omits to state a fact which, in the opinion of such counsel, is material and is required
to be stated therein or is necessary (in the case of the Prospectus and the Pricing
Disclosure Package, in the light of the circumstances under which such statements were made)
to make the statements therein not misleading.
(c) All limited partnership and limited liability company proceedings and other legal
matters incident to the authorization, form and validity of this Agreement, the Units, the
Registration Statement, the Pricing Disclosure Package, the Prospectus and any Issuer Free
Writing Prospectus, and all other legal matters relating to this Agreement and the
transactions contemplated hereby (including the Transactions) shall be reasonably
satisfactory in all material respects to counsel for the Underwriters, and the Partnership
Parties shall have furnished to such counsel all documents and information that they may
reasonably request to enable them to pass upon such matters.
(d) Xxxxxx & Xxxxxxx LLP shall have furnished to the Representatives its written
opinion, as counsel to the Partnership, addressed to the Underwriters and dated such
Delivery Date, in form and substance reasonably satisfactory to the Representatives,
substantially in the form attached hereto as Exhibit B-1.
(e) Squire, Xxxxxxx & Xxxxxxx L.L.P. shall have furnished to the Representatives (i)
its written opinion, as counsel to the Partnership, addressed to the Underwriters and dated
such Delivery Date, in form and substance reasonably satisfactory to the Representatives,
substantially in the form attached hereto as Exhibit B-2 and (ii) a copy of their
opinion delivered to the lenders under the Credit Facility and a reliance letter, dated
such Delivery Date, in the form attached hereto as Exhibit B-3 entitling the
Underwriters to rely on such opinion as if it were addressed to them.
(f) The Representatives shall have received from Xxxxxxx Xxxxx LLP, counsel for the
Underwriters, such opinion or opinions, dated such Delivery Date, with respect to the
issuance and sale of the Units, the Registration Statement, the Prospectus and the Pricing
Disclosure Package and other related matters as the Representatives may reasonably require,
and the Partnership Parties shall have furnished to such counsel such documents as they
reasonably request for the purpose of enabling them to pass upon such matters.
27
(g) At the time of execution of this Agreement, the Representatives shall have received
from Xxxxx Xxxxxxxx LLP a letter, in form and substance satisfactory to the Representatives,
addressed to the Underwriters and dated the date hereof (i) confirming that they are
independent public accountants within the meaning of the Securities Act and are in
compliance with the applicable requirements relating to the qualification of accountants
under Rule 2-01 of Regulation S-X of the Commission, and (ii) stating, as of the date hereof
(or, with respect to matters involving changes or developments since the respective dates as
of which specified financial information is given in the most recent Preliminary Prospectus,
as of a date not more than three days prior to the date hereof), the conclusions and
findings of such firm with respect to the financial information and other matters ordinarily
covered by accountants’ “comfort letters” to underwriters in connection with registered
public offerings.
(h) With respect to the letter of Xxxxx Xxxxxxxx LLP referred to in the preceding
paragraph and delivered to the Representatives concurrently with the execution of this
Agreement (the “GT initial letter”), the Partnership Parties shall have furnished to the
Representatives a letter (the “GT bring-down letter”) of such accountants, addressed to the
Underwriters and dated such Delivery Date, (i) confirming that they are independent public
accountants within the meaning of the Securities Act and are in compliance with the
applicable requirements relating to the qualification of accountants under Rule 2-01 of
Regulation S-X of the Commission, (ii) stating, as of the date of the GT bring-down letter
(or, with respect to matters involving changes or developments since the respective dates as
of which specified financial information is given in the Prospectus, as of a date not more
than three days prior to the date of the GT bring-down letter), the conclusions and findings
of such firm with respect to the financial information and other matters covered by the GT
initial letter and (iii) confirming in all material respects the conclusions and findings
set forth in the GT initial letter.
(i) At the time of execution of this Agreement, the Representatives shall have received
from Ernst & Young LLP a letter, in form and substance satisfactory to the Representatives,
addressed to the Underwriters and dated the date hereof.
(j) With respect to the letter of Ernst & Young LLP referred to in the preceding
paragraph and delivered to the Representatives concurrently with the execution of this
Agreement (the “EY initial letter”), the Partnership Parties shall have furnished to the
Representatives a letter of such accountants, addressed to the Underwriters and dated such
Delivery Date, confirming in all material respects the conclusions and findings set forth in
the EY initial letter.
(k) At the time of execution of this Agreement, the Representatives shall have received
from Xxxx X. Xxxx Company an initial letter (the “initial expert letter”), in form and
substance satisfactory to the Representatives, addressed to the Underwriters and dated the
date hereof and a subsequent letter dated as of the Delivery Date confirming in all material
respects the conclusions and findings set forth in the initial expert letter.
28
(l) The Partnership shall have furnished to the Representatives a certificate, dated
such Delivery Date, of the Chief Executive Officer and Chief Financial Officer of the
General Partner stating that:
(i) The representations, warranties and agreements of the Partnership Parties
in Section 1 hereof are true and correct on and as of such Delivery Date, and the
Partnership Parties have complied with all their agreements contained herein and
satisfied all the conditions to be performed or satisfied by the Partnership Parties
hereunder at or prior to such Delivery Date;
(ii) No stop order suspending the effectiveness of the Registration Statement
has been issued; and no proceedings or examination for that purpose have been
instituted or, to the knowledge of such officers, threatened; and
(iii) Such officers have carefully examined the Registration Statement, the
Prospectus and the Pricing Disclosure Package, and, in their opinion, (1) the
Registration Statement, as of the Effective Date, (2) the Prospectus, as of its date
and on the applicable Delivery Date, or (3) the Pricing Disclosure Package, as of
the Applicable Time, did not and do not contain any untrue statement of a material
fact and did not and do not omit to state a material fact required to be stated
therein or necessary to make the statements therein (except in the case of the
Registration Statement, in the light of the circumstances under which they were
made) not misleading;
(m) Except as described in the most recent Preliminary Prospectus, (i) none of the
Oxford Entities shall have sustained, since the date of the latest audited financial
statements included in the most recent Preliminary Prospectus, any loss or interference with
its business from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or decree or
(ii) since such date there shall not have been any change in the capitalization or increase
in long-term debt of any of the Oxford Entities or any change, or any development involving
a prospective change, in or affecting the condition (financial or other), results of
operations, partners’ capital, properties, management or business of the Oxford Entities
taken as a whole, the effect of which, in any such case described in clause (i) or (ii), is,
in the judgment of the Representatives, so material and adverse as to make it impracticable
or inadvisable to proceed with the public offering or the delivery of the Units being
delivered on such Delivery Date on the terms and in the manner contemplated in the
Prospectus.
(n) Subsequent to the execution and delivery of this Agreement there shall not have
occurred any of the following: (i) trading in securities generally on the New York
Stock Exchange shall have been suspended or materially limited, (ii) trading in any
securities of the Partnership on the New York Stock Exchange shall have been suspended or
materially limited or minimum prices shall have been established, (iii) a banking moratorium
shall have been declared by federal or state authorities, (iv) the United States shall have
become engaged in hostilities, there shall have been an escalation in hostilities involving
the United States or there shall have been a declaration of a national emergency
29
or war by the United States or (v) there shall have occurred such a material adverse change in general
economic, political or financial conditions, including, without limitation, as a result of
terrorist activities after the date hereof (or the effect of international conditions on the
financial markets in the United States shall be such), in each case, as to make it, in the
judgment of the Representatives, impracticable or inadvisable to proceed with the public
offering or delivery of the Units being delivered on such Delivery Date on the terms and in
the manner contemplated in the Prospectus.
(o) The New York Stock Exchange shall have approved the Units for listing, subject only
to official notice of issuance.
(p) The Lock-Up Agreements between the Representatives and each of the parties listed
on Schedule 2 hereto and, in the case of each participant in the Directed Unit
Program, the lock-up agreement contained in the Directed Unit Program materials and
delivered to the Representatives on or before the date of this Agreement, shall be in full
force and effect on such Delivery Date.
All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
8. Indemnification and Contribution.
(a) Each of the Partnership Parties, jointly and severally, shall indemnify and hold
harmless each Underwriter, the directors, officers, employees and agents of each
Underwriter, each affiliate of any Underwriter who has participated in the distribution of
the Units, each broker-dealer affiliate of any Underwriter and each other affiliate of any
Underwriter within the meaning of Rule 405 under the Rules and Regulations, and each person,
if any, who controls any Underwriter within the meaning of Section 15 of the Securities Act,
from and against any loss, claim, damage or liability, joint or several, or any action in
respect thereof (including, without limitation, any loss, claim, damage, liability or action
relating to purchases and sales of the Units), to which that Underwriter, director, officer,
employee, agent, affiliate or controlling person may become subject, under the Securities
Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or
is based upon, (i) any untrue statement or alleged untrue statement of a material fact
contained in (A) any Preliminary Prospectus, the Registration Statement, the Prospectus or
any amendment or supplement thereto, (B) any Issuer Free Writing Prospectus or any amendment
or supplement thereto, (C) any Permitted Issuer Information used or referred to in any “free
writing prospectus” (as defined in Rule 405 of the Rules and Regulations) used or referred
to by any Underwriter or (D) any “road show” (as defined in Rule 433 of the Rules and
Regulations) not constituting an Issuer
Free Writing Prospectus (a “Non-Prospectus Road Show”) or (ii) the omission or alleged
omission to state in any Preliminary Prospectus, the Registration Statement, the Prospectus,
any Issuer Free Writing Prospectus or any amendment or supplement thereto, or in any
Permitted Issuer Information or any Non-Prospectus Road Show, any material fact required to
be stated therein or necessary to make the statements therein not misleading (in the case of
any Preliminary Prospectus, the Prospectus or any Issuer Free
30
Writing Prospectus, in the light of the circumstances under which such statements were made), and shall reimburse each
Underwriter and each such director, officer, employee, agent, affiliate or controlling
person promptly upon demand for any legal or other expenses reasonably incurred by that
Underwriter, director, officer, employee, agent, affiliate or controlling person in
connection with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided, however, that
the Partnership Parties shall not be liable in any such case to the extent that any such
loss, claim, damage, liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement or omission or alleged omission made in any
Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or any such amendment or supplement thereto, or in any Permitted Issuer
Information or any Non-Prospectus Road Show, in reliance upon and in conformity with written
information concerning such Underwriter furnished to the Partnership Parties through the
Representatives by or on behalf of any Underwriter specifically for inclusion therein, which
information consists solely of the information specified in Section 8(e) hereof. The
foregoing indemnity agreement is in addition to any liability which the Partnership Parties
may otherwise have to any Underwriter or to any director, officer, employee, agent,
affiliate or controlling person of that Underwriter.
(b) Each Underwriter, severally and not jointly, shall indemnify and hold harmless each
of the Partnership Parties, the General Partner’s directors and officers who sign or consent
to be included in the Registration Statement, and each person, if any, who controls any of
the Partnership Parties within the meaning of Section 15 of the Securities Act, from and
against any loss, claim, damage or liability, joint or several, or any action in respect
thereof, to which the Partnership Parties or any such director, officer or controlling
person may become subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement
or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the
Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any amendment
or supplement thereto or in any Non-Prospectus Road Show, or (ii) the omission or alleged
omission to state in any Preliminary Prospectus, the Registration Statement, the Prospectus,
any Issuer Free Writing Prospectus or any amendment or supplement thereto or in any
Non-Prospectus Road Show, any material fact required to be stated therein or necessary to
make the statements therein not misleading (in the case of any Preliminary Prospectus, the
Prospectus or any Issuer Free Writing Prospectus, in light of the circumstances under which
such statements were made), but in each case only to the extent that the untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance upon and in
conformity with written information concerning such Underwriter furnished to the Partnership
Parties through the Representatives by or on behalf of that Underwriter specifically for
inclusion therein, which information is limited to the information set forth in Section 8(e)
hereof. The foregoing indemnity agreement is in addition to any liability that any
Underwriter may otherwise have to the Partnership Parties or any such director, officer or
controlling person.
(c) Promptly after receipt by an indemnified party under this Section 8 of notice of
any claim or the commencement of any action, the indemnified party shall, if a
31
claim in respect thereof is to be made against the indemnifying party under this Section 8, notify
the indemnifying party in writing of the claim or the commencement of that action; provided,
however, that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has been materially
prejudiced by such failure, and provided further that the failure to notify the indemnifying
party shall not relieve it from any liability which it may have to an indemnified party
otherwise than under this Section 8. If any such claim or action shall be brought against an
indemnified party, and it shall notify the indemnifying party thereof, the indemnifying
party shall be entitled to participate therein and, to the extent that it wishes, jointly
with any other similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying
party to the indemnified party of its election to assume the defense of such claim or
action, the indemnifying party shall not be liable to the indemnified party under this
Section 8 for any legal or other expenses subsequently incurred by the indemnified party in
connection with the defense thereof other than reasonable costs of investigation; provided,
however, that the Representatives shall have the right to employ counsel to represent
jointly the Representatives and those other Underwriters and their respective directors,
officers, employees, agents, affiliates and controlling persons who may be subject to
liability arising out of any claim in respect of which indemnity may be sought by the
Underwriters against the Partnership Parties under this Section 8 if (i) the Partnership
Parties and the Underwriters shall have so mutually agreed in writing; (ii) the Partnership
Parties have failed within a reasonable time to retain counsel reasonably satisfactory to
the Underwriters; (iii) the Underwriters and their respective directors, officers,
employees, agents, affiliates and controlling persons shall have reasonably concluded, based
upon the advice of counsel, that there may be legal defenses available to them that are
different from or in addition to those available to the Partnership Parties (it being
understood, however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel (in addition to any local counsel) in any one action, suit or
proceeding or series of related actions, suits or proceedings in the same jurisdiction
representing the indemnified parties who are parties to such action, suit or proceeding); or
(iv) the named parties in any such proceeding (including any impleaded parties) include both
any of the Underwriters or their respective directors, officers, employees, agents,
affiliates or controlling persons, on the one hand, and any of the Partnership Parties, on
the other hand, and representation of both sets of parties by the same counsel would be
inappropriate due to actual or potential differing interests between them, and in any such
event the reasonable fees and expenses of such separate counsel shall be paid by the
Partnership Parties. No indemnifying party shall (i) without the prior written consent of
the indemnified parties (which consent shall not be unreasonably withheld), settle or
compromise or consent to the entry of any judgment with respect to any pending or threatened
claim, action, suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action) unless
such settlement, compromise or consent includes an unconditional release of each indemnified
party from all liability arising out of such claim, action, suit or proceeding and does not
include any findings of fact or admissions of fault or culpability as to the indemnified
party, or (ii) be liable for any settlement of any such action effected without its written
32
consent (which consent shall not be unreasonably withheld), but if settled with the consent
of the indemnifying party or if there be a final judgment for the plaintiff in any such
action, the indemnifying party agrees to indemnify and hold harmless any indemnified party
from and against any loss or liability by reason of such settlement or judgment.
(d) If the indemnification provided for in this Section 8 shall for any reason be
unavailable to or insufficient to hold harmless an indemnified party under Section 8(a) or
8(b) in respect of any loss, claim, damage or liability, or any action in respect thereof,
referred to therein, then each indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by such indemnified party as a
result of such loss, claim, damage or liability, or action in respect thereof, (i) in such
proportion as shall be appropriate to reflect the relative benefits received by the
Partnership Parties, on the one hand, and the Underwriters, on the other, from the offering
of the Units or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Partnership
Parties, on the one hand, and the Underwriters, on the other, with respect to the statements
or omissions that resulted in such loss, claim, damage or liability, or action in respect
thereof, as well as any other relevant equitable considerations. The relative benefits
received by the Partnership Parties, on the one hand, and the Underwriters, on the other,
with respect to such offering shall be deemed to be in the same proportion as the total net
proceeds from the offering of the Units purchased under this Agreement (before deducting
expenses) received by the Partnership Parties, as set forth in the table on the cover page
of the Prospectus, on the one hand, and the total underwriting discounts and commissions
received by the Underwriters with respect to the Units purchased under this Agreement, as
set forth in the table on the cover page of the Prospectus, on the other hand. The relative
fault shall be determined by reference to whether the untrue or alleged untrue statement of
a material fact or omission or alleged omission to state a material fact relates to
information supplied by the Partnership Parties or the Underwriters, the intent of the
parties and their relative knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Partnership Parties and the Underwriters agree that
it would not be just and equitable if contributions pursuant to this Section 8(d) were to be
determined by pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation that does not take into account the
equitable considerations referred to herein. The amount paid or payable by an indemnified
party as a result of the loss, claim, damage or liability, or action in respect thereof,
referred to above in this Section 8(d) shall be deemed to include, for purposes of this
Section 8(d), any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8(d), no Underwriter shall be required to contribute any amount
in excess of the amount by which the net proceeds from the sale of
the Units underwritten by it exceeds the amount of any damages that such Underwriter
has otherwise paid or become liable to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
33
misrepresentation. The Underwriters’ obligations to contribute as provided in this Section 8(d) are several in
proportion to their respective underwriting obligations and not joint.
(e) The Underwriters severally confirm and the Partnership Parties acknowledge and
agree that the statements regarding the delivery of Units by the Underwriters set forth on
the cover page of the Prospectus, and the statements in the first paragraph following the
table under the subheading “Commissions and Expenses,” the third paragraph under the
subheading “Lock-Up Agreements,” the statements set forth under the subheadings
“Stabilization, Short Positions and Penalty Bids,” “Electronic Distribution,” “Discretionary
Sales,” and the third sentence under the subheading “Offering Price Determination,” in each
case, appearing under the caption “Underwriting” in the Pricing Disclosure Package and the
Prospectus are correct and constitute the only information concerning such Underwriters
furnished in writing to the Partnership Parties by or on behalf of the Underwriters
specifically for inclusion in any Preliminary Prospectus, the Registration Statement, the
Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement thereto or in
any Non-Prospectus Road Show.
(f) The Partnership Parties shall indemnify and hold harmless the DUP Manager
(including its directors, officers, employees, agents, affiliates and joint ventures who
have participated in the distribution of the Directed Units, its broker-dealer affiliates,
and its affiliates within the meaning of Rule 405 of the
Rules and Regulations) and each person, if any, who controls the DUP Manager within the
meaning of Section 15 of the Securities Act, from and against any loss, claim, damage or
liability or any action in respect thereof to which the DUP Manager may become subject,
under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or
action (i) arises out of, or is based upon, any untrue statement or alleged untrue statement
of a material fact contained in any material prepared by or with the approval of any of the
Partnership Parties for distribution to Directed Unit Participants in connection with the
Directed Unit Program or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading,
(ii) arises out of, or is based upon, the failure of the Directed Unit Participant to pay
for and accept delivery of Directed Units that the Directed Unit Participant agreed to
purchase or (iii) is otherwise related to the Directed Unit Program; provided that the
Partnership Parties shall not be liable under this clause (iii) for any loss, claim, damage,
liability or action that is determined in a final judgment by a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of the DUP
Manager. The Partnership Parties shall reimburse the DUP Manager promptly upon demand for
any legal or other expenses reasonably incurred by it in connection with investigating or
defending or preparing to defend against any such loss, claim, damage, liability or action
as such expenses are incurred.
9. Defaulting Underwriters. If, on any Delivery Date, any Underwriter defaults in the
performance of its obligations under this Agreement, the remaining non-defaulting Underwriters
shall be obligated to purchase the Units that the defaulting Underwriter agreed but failed to
purchase on such Delivery Date in the respective proportions which the number of Firm Units set
forth opposite the name of each remaining non-defaulting Underwriter
34
in Schedule 1 hereto
bears to the total number of Firm Units set forth opposite the names of all the remaining
non-defaulting Underwriters in Schedule 1 hereto; provided, however, that the remaining
non-defaulting Underwriters shall not be obligated to purchase any of the Units on such Delivery
Date if the total number of Units that the defaulting Underwriter or Underwriters agreed but failed
to purchase on such date exceeds 9.09% of the total number of Units to be purchased on such
Delivery Date, and any remaining non-defaulting Underwriter shall not be obligated to purchase more
than 110% of the number of Units that it agreed to purchase on such Delivery Date pursuant to the
terms of Section 2. If the foregoing maximums are exceeded, the remaining non-defaulting
Underwriters, or those other underwriters satisfactory to the Representatives who so agree, shall
have the right, but shall not be obligated, to purchase, in such proportion as may be agreed upon
among them, all the Units to be purchased on such Delivery Date. If the remaining Underwriters or
other underwriters satisfactory to the Representatives do not elect to purchase the Units that the
defaulting Underwriter or Underwriters agreed but failed to purchase on such Delivery Date, this
Agreement (or, with respect to any Option Unit Delivery Date, the obligation of the Underwriters to
purchase, and of the Partnership to sell, the Option Units) shall terminate without liability on
the part of any non-defaulting Underwriter or any of the Partnership Parties, except that the
Partnership will continue to be liable for the payment of expenses to the extent set forth in
Sections 6 and 11 hereof. As used in this Agreement, the term “Underwriter” includes, for all
purposes of this Agreement unless the context requires otherwise, any party not listed in
Schedule 1 hereto that, pursuant to this Section 9 hereof, purchases Units that a
defaulting Underwriter agreed but failed to purchase.
Nothing contained herein shall relieve a defaulting Underwriter of any liability it may have
to the Partnership Parties for damages caused by its default. If other Underwriters are obligated
or agree to purchase the Units of a defaulting or withdrawing Underwriter, either the
Representatives or the Partnership may postpone the Delivery Date for up to seven full business
days in order to effect any changes that in the opinion of counsel for the Partnership or counsel
for the Underwriters may be necessary in the Registration Statement, the Prospectus or in any other
document or arrangement.
10. Termination. The obligations of the Underwriters hereunder may be terminated by the
Representatives by notice given to and received by the Partnership Parties prior to delivery of and
payment for the Firm Units if, prior to that time, any of the events described in Sections 7(m) or
7(n) shall have occurred or if the Underwriters shall decline to purchase the Units for any reason
permitted under this Agreement.
11. Reimbursement of Underwriters’ Expenses. If the Partnership shall fail to tender the Units for delivery to the Underwriters by
reason of any failure, refusal or inability on the part of any Partnership Parties to perform any
agreement on its part to be performed, or because any other condition to the Underwriters’
obligations hereunder required to be fulfilled by the Partnership Parties is not fulfilled for any
reason, the Partnership will reimburse the Underwriters for all reasonable out-of-pocket expenses
(including the reasonable fees and expenses of counsel) incurred by the Underwriters in connection
with this Agreement and the proposed purchase of the Units, and upon demand the Partnership shall
pay the full amount thereof to the Representatives. If this Agreement is terminated pursuant to Section 9 hereof
35
(Defaulting Underwriters) by reason of the default of one or more Underwriters,
the Partnership shall not be obligated to reimburse any Underwriter on account of such
Underwriter’s expenses.
12. Research Analyst Independence. Each of the Partnership Parties acknowledges that the
Underwriters’ research analysts and research departments are required to be independent from their
respective investment banking divisions and are subject to certain regulations and internal
policies, and that such Underwriters’ research analysts may hold views and make statements or
investment recommendations and/or publish research reports with respect to the Partnership and/or
the offering of the Units that differ from the views of their respective investment banking
divisions. Each of the Partnership Parties hereby waives and releases, to the fullest extent
permitted by law, any claims that the Partnership Parties may have against the Underwriters with
respect to any conflict of interest that may arise from the fact that the views expressed by their
independent research analysts and research departments may be different from or inconsistent with
the views or advice communicated to the Partnership Parties by such Underwriters’ investment
banking divisions. Each of the Partnership Parties acknowledges that each of the Underwriters is a
full service securities firm and as such from time to time, subject to applicable securities laws,
may effect transactions for its own account or the account of its customers and hold long or short
positions in debt or equity securities of the companies that may be the subject of the transactions
contemplated by this Agreement.
13. No Fiduciary Duty. Each of the Partnership Parties acknowledges and agrees that in
connection with this offering, sale of the Units or any other services the Underwriters may be
deemed to be providing hereunder, notwithstanding any preexisting relationship, advisory or
otherwise, between the parties or any oral representations or assurances previously or subsequently
made by the Underwriters: (i) no fiduciary or agency relationship between any of the Partnership
Parties and any other person, on the one hand, and the Underwriters, on the other hand, exists;
(ii) the Underwriters are not acting as advisors, expert or otherwise, to any of the Partnership
Parties, including, without limitation, with respect to the determination of the public offering
price of the Units, and such relationship between the Partnership Parties, on the one hand, and the
Underwriters, on the other hand, is entirely and solely commercial, based on arms-length
negotiations; (iii) any duties and obligations that the Underwriters may have to any of the
Partnership Parties shall be limited to those duties and obligations specifically stated herein;
and (iv) the Underwriters and their respective affiliates may have interests that differ from those
of the Partnership Parties. Each of the Partnership Parties hereby waives any claims that any such
entity may have against the Underwriters with respect to any breach of fiduciary duty in
connection with this offering of Units.
14. Notices, Etc. All statements, requests, notices and agreements hereunder shall be in
writing, and:
(a) if to the Underwriters, shall be delivered or sent by mail or facsimile
transmission to (i) Barclays Capital Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Syndicate Registration (Fax: 000-000-0000), with a copy, in the case of any
notice pursuant to Section 8(c), to the Director of Litigation, Office of the General
Counsel, Barclays Capital Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 and (ii)
Citigroup Global Markets Inc., to the General Counsel (fax no.: (000) 000-0000) and
36
confirmed to the General Counsel, Citigroup Global Markets Inc., at 000 Xxxxxxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000; and
(b) if to the Partnership, shall be delivered or sent by mail or facsimile transmission
to the address of the Company set forth in the Registration Statement, Attention: Xxxxxxx X.
Xxxxxxx, General Counsel (Fax: (000) 000-0000).
Any such statements, requests, notices or agreements shall take effect at the time of receipt
thereof. The Partnership Parties shall be entitled to act and rely upon any request, consent,
notice or agreement given or made on behalf of the Underwriters by Barclays Capital Inc. on behalf
of the Representatives.
15. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the Underwriters, the Partnership Parties and their respective successors.
This Agreement and the terms and provisions hereof are for the sole benefit of only those persons,
except that (A) the representations, warranties, indemnities and agreements of the Partnership
Parties contained in this Agreement shall also be deemed to be for the benefit of the directors,
officers, employees and agents of each of the Underwriters, each affiliate of any Underwriter who
has participated in the distribution of Units as underwriters, each broker-dealer affiliate of any
Underwriter and each other affiliate of any Underwriter within the meaning of Rule 405 of the Rules
and Regulations, and each person or persons, if any, who control any Underwriter within the meaning
of Section 15 of the Securities Act and (B) the indemnity agreement of the Underwriters contained
in Section 8(b) hereof shall be deemed to be for the benefit of the General Partner’s directors and
officers who sign or consent to be included in the Registration Statement, and any person
controlling the Partnership Parties within the meaning of Section 15 of the Securities Act.
Nothing in this Agreement is intended or shall be construed to give any person, other than the
persons referred to in this Section 15, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein.
16. Survival. The respective indemnities, representations, warranties and agreements of the Partnership
Parties and the Underwriters contained in this Agreement or made by or on behalf of them,
respectively, pursuant to this Agreement, shall survive the delivery of and payment for the Units
and shall remain in full force and effect, regardless of any investigation made by or on behalf of
any of them or any person controlling any of them.
17. Definition of the Terms “Business Day” and “Subsidiary”. For purposes of this Agreement,
(a) “business day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on
which banking institutions in New York City are generally authorized or obligated by law or
executive order to close and (b) “subsidiary” has the meaning set forth in Rule 405 of the Rules
and Regulations.
18. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.
19. Counterparts. This Agreement may be executed in one or more counterparts and, if executed
in more than one counterpart, the executed counterparts shall each
37
be deemed to be an original but all such counterparts shall together constitute one and the same instrument.
20. Headings. The headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.
[Signature pages follow]
38
If the foregoing correctly sets forth the agreement between the Partnership Parties and the
Underwriters, please indicate your acceptance in the space provided for that purpose below.
Very truly yours, Oxford Resources GP, LLC |
||||
By: | /s/ Xxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxx X. Xxxxxx | |||
Title: | Senior Vice President, Chief Financial Officer and Treasurer |
|||
Oxford Resource Partners, LP |
||||
By: | Oxford Resources GP, LLC, its general partner |
|||
By: | /s/ Xxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxx X. Xxxxxx | |||
Title: | Senior Vice President, Chief Financial Officer and Treasurer |
|||
Oxford Mining Company, LLC |
||||
By: | /s/ Xxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxx X. Xxxxxx | |||
Title: | Senior Vice President, Chief Financial Officer and Treasurer |
Accepted:
Barclays Capital Inc.
Citigroup Global Markets Inc.
Citigroup Global Markets Inc.
For themselves and as Representatives
of the several Underwriters named
in Schedule 1 hereto
of the several Underwriters named
in Schedule 1 hereto
Barclays Capital Inc. |
||||
By: | /s/ Xxxxxxxx Xxxx | |||
Authorized Representative | ||||
Citigroup Global Markets Inc. |
||||
By: | /s/ Xxxxxxx Xxxxxxxxx | |||
Authorized Representative | ||||
SCHEDULE 1
Number of Firm Units | ||||
Underwriters | to be Purchased | |||
Barclays Capital Inc. |
2,843,750 | |||
Citigroup Global Markets Inc. |
2,843,750 | |||
Credit Suisse Securities (USA) LLC |
875,000 | |||
Xxxxxxx Xxxxx & Associates, Inc. |
875,000 | |||
Xxxxx Fargo Securities, LLC |
875,000 | |||
UBS Securities LLC |
437,500 | |||
Total |
8,750,000 | |||
Schedule 1
SCHEDULE 2
PERSONS DELIVERING LOCK-UP AGREEMENTS
Directors
Xxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxxx
Xxxxx X. Xxxxx
Xxxxxx X. XxXxxx
Xxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxxx
Xxxxx X. Xxxxx
Xxxxxx X. XxXxxx
Xxxxxx X. Xxxxxxxx
Officers
Xxxxxxx X. Xxxxxxx
Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
Xxxxxx X. Xxxxxxxxxx
Xxxxxxx X. Xxxxxxxx
Xxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
Xxxxxx X. Xxxxxxxxxx
Xxxxxxx X. Xxxxxxxx
Xxxxxx X. Xxxxxxxx
Unitholders
AIM Oxford Holdings, LLC
C&T Coal, Inc.
C&T Coal, Inc.
Schedule 2
SCHEDULE 3
1. | Public offering price for the Units: $18.50 | |
2. | Number of Units: 8,750,000 |
Schedule 3
SCHEDULE 4
1. | Letter dated May 3, 2010 for Equipment Lease Payoff/Termination and Equipment Purchase Transaction executed by Caterpillar Financial Services Corporation in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. |
2. | Letter dated May 12, 2010 for Equipment Lease Payoff/Termination and Equipment Purchase Transaction executed by General Electric Capital Corporation in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. |
3. | Letter dated May 10, 2010 for Equipment Lease Termination and Equipment Purchase Transaction, and the related Agreement Regarding Equipment Lease and Related Equipment Transaction Purchase Amount Form dated June 30, 2010, executed by OMCO Leasing Corporation in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. |
4. | Letter dated May 12, 2010 for Equipment Lease Payoff/Termination and Equipment Purchase Transaction, and the related Agreement Regarding Equipment Lease and Related Equipment Transaction Purchase Amount Form dated June 30, 2010, executed by Komatsu Financial Limited Partnership in favor of Oxford Resource Partners, LP, Oxford Resources GP, LLC, Oxford Mining Company, LLC and Oxford Mining Company — Kentucky, LLC. |
5. | Letter dated June 29, 2010 for Payoff Calculation and Payoff Transaction executed by Sovereign Bank in favor of Oxford Resource Partners, LP and Oxford Mining Company, LLC. |
6. | Letter agreement dated June 2, 2010 for Lease Payoff/Termination and Equipment Purchase Transaction between Marquette Equipment Finance, LLC, Oxford Resource Partners, LP and Oxford Mining Company, LLC. |
Schedule 4
EXHIBIT A
LOCK-UP LETTER AGREEMENT
Barclays Capital Inc.
Citigroup Global Markets Inc.
Citigroup Global Markets Inc.
As
Representatives of the several Underwriters
named in Schedule 1 to the Underwriting Agreement
named in Schedule 1 to the Underwriting Agreement
c/o Barclays Capital Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
The undersigned understands that you and certain other firms (the “Underwriters”) propose to
enter into an Underwriting Agreement (the “Underwriting Agreement”) providing for the purchase by
the Underwriters of common units (the “Common Units”) representing limited partner interests in
Oxford Resource Partners, LP, a Delaware limited partnership (the “Partnership”), and that the
Underwriters propose to reoffer the Common Units to the public (the “Offering”).
In consideration of the execution of the Underwriting Agreement by the Underwriters, and for
other good and valuable consideration, the undersigned hereby irrevocably agrees that, without the
prior written consent of Barclays Capital Inc. and Citigroup Global Markets Inc., on behalf of the
Underwriters, the undersigned will not, directly or indirectly, (1) offer for sale, sell, pledge,
or otherwise dispose of (or enter into any transaction or device that is designed to, or could be
expected to, result in the disposition by any person at any time in the future of) any Common Units
(including, without limitation, Common Units that may be deemed to be beneficially owned by the
undersigned in accordance with the rules and regulations of the Securities and Exchange Commission
and Common Units that may be issued upon exercise of any options or warrants) or securities
convertible into or exercisable or exchangeable for Common Units, except for transfers of Common
Units (i) to an affiliate or (ii) as a bona fide gift (provided that in the case of any such
transfer (A) the transferee or donee shall execute and deliver a lock-up letter agreement
substantially in the form of this lock-up letter agreement and (B) no filing under Section 16(a) of
the Securities Exchange Act of 1934, as amended, reporting a reduction in beneficial ownership of
Common Units, shall be required or voluntarily made during the Lock-Up Period (as defined below)),
(2) enter into any swap or other derivatives transaction that transfers to another, in whole or in
part, any of the economic benefits or risks of ownership of the Common Units, whether any such
transaction described in clause (1) or (2)
above is to be settled by delivery of Common Units or other securities, in cash or otherwise,
(3) make any demand for or exercise any right or cause to be filed a registration statement,
including any amendments thereto, with respect to the registration of any Common Units or
securities convertible into or exercisable or exchangeable for Common Units or any other securities
of the Partnership or (4) publicly disclose the intention to do any of the foregoing, for a period
commencing on the date hereof and ending on the 180th day after the date of the Prospectus relating
to the Offering (such 180-day period, the “Lock-Up Period”).
Notwithstanding the foregoing, if (1) during the last 17 days of the Lock-Up Period, the
Partnership issues an earnings release or material news or a material event relating to the
Partnership occurs or (2) prior to the expiration of the Lock-Up Period, the Partnership announces
that it will release earnings results during the 16-day period beginning on the last day of the
Lock-Up Period, then the restrictions imposed by this Lock-Up Letter Agreement shall continue to
apply until the expiration of the 18-day period beginning on the issuance of the earnings release
or the announcement of the material news or the occurrence of the material event, unless the
Representatives waive such extension in writing. The undersigned hereby further agrees that, prior
to engaging in any transaction or taking any other action that is subject to the terms of this
Lock-Up Letter Agreement during the period from the date of this Lock-Up Letter Agreement to and
including the 34th day following the expiration of the Lock-Up Period, the undersigned will give
notice thereof to the Partnership and will not consummate such transaction or take any such action
unless the undersigned has received written confirmation from the Partnership that the Lock-Up
Period (as such may have been extended pursuant to this paragraph) has expired.
In furtherance of the foregoing, the Partnership and its transfer agent are hereby authorized
to decline to make any transfer of securities if such transfer would constitute a violation or
breach of this Lock-Up Letter Agreement.
It is understood that, if the Partnership notifies the Underwriters that it does not intend to
proceed with the Offering, if the Underwriting Agreement does not become effective, or if the
Underwriting Agreement (other than the provisions thereof which survive termination) shall
terminate or be terminated prior to payment for and delivery of the Units, the undersigned shall be
released from any obligations under this Lock-Up Letter Agreement.
The undersigned understands that the Partnership and the Underwriters will proceed with the
Offering in reliance on this Lock-Up Letter Agreement.
Whether or not the Offering actually occurs depends on a number of factors, including market
conditions. The Offering will only be made pursuant to an Underwriting Agreement, the terms of
which are subject to negotiation between the Partnership and the Underwriters.
The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will
execute any additional documents necessary in connection with the enforcement hereof. Any
obligations of the undersigned shall be binding upon the heirs, personal representatives,
successors and assigns of the undersigned.
A-2
The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will
execute any additional documents necessary in connection with the enforcement hereof. Any
obligations of the undersigned shall be binding upon the heirs, personal representatives,
successors and assigns of the undersigned.
Very truly yours, |
||||
By: | ||||
Name: | ||||
Dated: , 2010 | Title: |
A-3