Exhibit 1.1
EV ENERGY PARTNERS,
L.P.
3,500,000 Common
Units
Representing Limited Partner
Interests
UNDERWRITING
AGREEMENT
June 11, 2009
Wachovia Capital
Markets, LLC
Citigroup Global Markets
Inc.
Raymond James &
Associates, Inc.
RBC Capital Markets
Corporation
As
Representatives of the several Underwriters
named in
Schedule I
c/o Wachovia
Capital Markets, LLC
375 Park
Avenue
4
th Floor
New York, New
York 10152
The undersigned, EV Energy Partners, L.P., a
Delaware limited partnership (the “ Partnership
”), EV Energy GP, L.P., a Delaware limited partnership and
general partner of the Partnership (the “ General
Partner ”), EV Management, LLC, a Delaware limited
liability company and general partner of the General Partner
(“ GP LLC ”), EV Properties, L.P., a Delaware
limited partnership (the “ Operating Partnership
”), EV Properties GP, LLC, a Delaware limited liability
company and general partner of the Operating Partnership (the
“ Operating Partnership GP ”), hereby
confirm their agreement with the several Underwriters named in
Schedule I hereto (the “ Underwriters ”), for
whom Wachovia Capital Markets, LLC, Citigroup Global Markets Inc.,
Raymond James & Associates, Inc. and RBC Capital Markets
Corporation are acting as representatives (the “
Representatives ”).
The Partnership, the General Partner, GP LLC,
the Operating Partnership GP and the Operating Partnership are
collectively referred to herein as the “ EVEP Parties
.” The Partnership, the General Partner, GP LLC,
the Operating Partnership GP and the Operating Partnership and the
other Subsidiaries (as defined in Section 4(r)) are referred
to collectively herein as the “ Partnership Entities
.”
1.
Description of Common Units . The Partnership
proposes to issue and sell to the Underwriters 3,500,000 common
units (the “ Firm Units ”) representing limited
partner interests in the Partnership (the “ Common
Units ”). The Partnership further proposes to
grant to the Underwriters the right to purchase up to an additional
525,000 Common Units (the “ Option Units ”)
under certain circumstances as provided in Section 3 of this
Agreement. The Firm Units and the Option Units are
herein sometimes referred to as the “ Units ”
and are more fully described in the Disclosure Package and the
Final Prospectus (each hereinafter defined).
2.
Purchase, Sale and Delivery of the Firm Units
. On the basis of the representations, warranties and
agreements herein contained, but subject to the terms and
conditions herein set forth, the Partnership agrees to sell to the
Underwriters, and each such Underwriter agrees, severally and not
jointly, (a) to purchase from the Partnership, at a purchase
price of $19.54 per unit, the number of Firm Units set forth
opposite the name of such Underwriter in Schedule I hereto and
(b) to purchase from the Partnership any additional number of
Option Units which such Underwriter may become obligated to
purchase pursuant to Section 3 hereof.
Delivery of the Firm Units will be in book-entry
form through the facilities of The Depository Trust Company, New
York, New York (“ DTC ”). Delivery of the
documents required by Section 6 hereof with respect to the Units
shall be made available at or prior to 9:00 a.m. Central Time on
June 16, 2009 at the offices of Haynes and Boone, LLP, 1221
McKinney, Suite 2100, Houston, Texas 77010 or at such other place
as may be agreed upon between the Representatives and the
Partnership (the “ Place of Closing ”), or at
such other time and date not later than five full business days
thereafter as the Representatives and the Partnership may agree,
such time and date of payment and delivery being herein called the
“ Initial Delivery Date .” Time shall
be of the essence, and delivery at the time and place specified
pursuant to this Agreement is a further condition of the obligation
of the Underwriters hereunder.
The Partnership will deliver the Firm Units to
the Underwriters, against payment of the purchase price therefor in
Federal (same day) Funds by wire transfer to an account at the bank
specified by the Partnership.
The Partnership will cause its transfer agent to
deposit the Firm Units pursuant to the Full Fast Delivery Program
of the DTC.
It is understood that the Underwriters propose
to offer the Units to the public upon the terms and conditions set
forth in the Disclosure Package and the Final
Prospectus.
3.
Purchase, Sale and Delivery of the Option Units
. The Partnership hereby grants the option to the
Underwriters to purchase from the Partnership up to 525,000 Option
Units, on the same terms and conditions as the Firm Units. No
Option Units shall be sold or delivered unless the Firm Units
previously have been, or simultaneously are, sold and delivered and
such Option Units shall be sold at the same price as the Firm
Units.
The option is exercisable by the Representatives
at any time, in whole or in part, and from time to time, before the
expiration of 30 days from the date of the Final Prospectus (or, if
such 30th day shall be a Saturday or Sunday or a holiday, on the
next day thereunder when the NASDAQ Global Select Market (the
“ NASDAQ ”) is open for trading), for the
purchase of all or part of the Option Units covered thereby, by
notice given by the Representatives to the Partnership in the
manner provided in Section 12 hereof, setting forth the number
of Option Units as to which the Underwriters are exercising the
option, and the date of delivery of said Option Units, which date
shall not be more than five business days after such notice unless
otherwise agreed to by the Partnership and the Representatives. The
Underwriters may terminate the option at any time, as to any
unexercised portion thereof, by giving written notice from the
Representatives to the Partnership to such effect. The
percentage of Option Units to be purchased by each Underwriter
shall be the same as the percentage of Firm Units purchased by such
Underwriter.
The Underwriters shall make such allocation of
the Option Units among them as may be required to eliminate
purchases of fractional Units.
Delivery of Option Units will be in book-entry
form through the facilities of DTC. Delivery of the documents
required by Section 6 hereof with respect to the Option Units shall
be made at the Place of Closing at or prior to 9:00 a.m. Central
Time on the date designated in the notice given by the
Representatives as provided above, or at such other time and date
as the Representatives and the Partnership may agree (which may be
the same as the Initial Delivery Date), such time and date of
payment and delivery being herein called the “ Option Unit
Delivery Date .” The Initial Delivery Date and
any Option Unit Delivery Date are sometimes each referred to as a
“ Delivery Date .” Time shall be of the essence,
and delivery at the time and place specified pursuant to this
Agreement is a further condition of the obligation of the
Underwriters hereunder. On each Option Unit Delivery
Date, the EVEP Parties shall provide the Underwriters such
representations, warranties, agreements, opinions, letters,
certificates and covenants with respect to Option Units as are
required to be delivered on the Initial Delivery Date with respect
to the Firm Units.
The Partnership will cause its transfer agent to
deposit Option Units pursuant to the Full Fast Delivery Program of
the DTC.
4.
Representations, Warranties and Agreements of the EVEP
Parties . The EVEP Parties jointly and severally
represent and warrant to and agree with each Underwriter as set
forth below:
(a)
Registration Statement/Prospectus . A registration statement
(Registration No. 333-146428) on Form S-3 with respect to the
Units, including a related Basic Prospectus (as defined below), has
been prepared by the Partnership pursuant to and in conformity with
the requirements of the Securities Act of 1933, as amended (the
“ 1933 Act ”), and the rules and regulations
thereunder (the “ 1933 Act Rules and Regulations
”) of the United States Securities and Exchange Commission
(the “ Commission ”) and has been filed and
declared effective by the Commission under the 1933 Act. The
Partnership will file with the Commission a Final Prospectus (as
defined below) in accordance with Rule 424(b). As filed, such Final
Prospectus shall contain all information required by the 1933 Act
and the 1933 Act Rules and Regulations, except to the extent the
Underwriters shall agree in writing to a modification, shall be in
all substantive respects in the form furnished to the
Representatives prior to the Execution Time or, to the extent not
completed at the Execution Time, shall contain only such specific
additional information and other changes (beyond that contained in
the Basic Prospectus and any Preliminary Prospectus) as the
Partnership has advised the Representatives, prior to the Execution
Time, will be included or made therein. Copies of such Registration
Statement, including any amendments thereto, each related
Preliminary Prospectus contained therein, and the exhibits,
financial statements and schedules thereto have heretofore been
delivered by the Partnership to the Underwriters. As used in this
Agreement:
(i) “
Basic Prospectus ” shall mean the prospectus referred
to in paragraph 4(a) above contained in the Registration Statement
at the Effective Date.
(ii) “
Disclosure Package ” shall mean, as of the Execution
Time, the most recent Preliminary Prospectus, together with (A) any
Issuer Free Writing Prospectus filed by the Partnership on or
before the Execution Time and identified on Schedule II hereto, and
(B) the pricing information identified on Schedule II
hereto.
(iii) “
Effective Date ” shall mean any date as of which any
part of the Registration Statement became, or is deemed to have
become, effective under the 1933 Act in accordance with the 1933
Act Rules and Regulations.
(iv) “
Execution Time ” shall mean the date and time (7:30
a.m. Central Time) that this Agreement is executed and delivered by
the parties hereto.
(v) “
Final Prospectus ” shall mean the prospectus
supplement relating to the Units that was first filed pursuant to
Rule 424(b) after the Execution Time, together with the Basic
Prospectus.
(vi) “
Issuer Free Writing Prospectus ” means each
“free writing prospectus” (as defined in Rule 405 of
the 1933 Act Rules and Regulations) prepared by or on behalf of the
Partnership or used or referred to by the Partnership in connection
with the offering of the Units.
(vii) “
Preliminary Prospectus ” shall mean any preliminary
prospectus supplement to the Basic Prospectus which describes the
Units and the offering thereof and is used prior to filing of the
Final Prospectus, together with the Basic Prospectus.
(viii) “
Registration Statement ” shall mean the registration
statement referred to in paragraph 4(a) above, including exhibits
and financial statements and any prospectus supplement relating to
the Units that is filed with the Commission pursuant to Rule 424(b)
and deemed part of such registration statement pursuant to Rule
430A, as amended at the Execution Time and, in the event any
post-effective amendment thereto or any Rule 462(b) Registration
Statement becomes effective prior to the Initial Delivery Date,
shall also mean such registration statement as so amended or such
Rule 462(b) Registration Statement, as the case may be.
(ix) “
Rule 462(b) Registration Statement ” shall mean a
registration statement and any amendments thereto filed pursuant to
Rule 462(b) relating to the offering covered by the registration
statement referred to in Section 4(a) hereof.
Any reference to any Preliminary Prospectus, the
Disclosure Package or the Basic Prospectus shall be deemed to refer
to and include any documents incorporated by reference therein
pursuant to Form S-3 under the 1933 Act as of the date of such
Preliminary Prospectus or the Basic Prospectus, as the case may be,
or in the case of the Disclosure Package, as of the Execution Time.
Any reference to the “most recent Preliminary
Prospectus” shall be deemed to refer to the latest
Preliminary Prospectus included in the Registration Statement or
filed pursuant to Rule 424(b) on or prior to the date hereof. Any
reference to any amendment or supplement to any Preliminary
Prospectus or the Basic Prospectus shall be deemed to refer to and
include any document filed under the Securities Exchange Act of
1934, as amended (the “ 1934 Act ”), after the
date of such Preliminary Prospectus or the Basic Prospectus, as the
case may be, and incorporated by reference in such Preliminary
Prospectus or the Basic Prospectus, as the case may be; and any
reference to any amendment to the Registration Statement shall be
deemed to include the most recent annual report of the Partnership
on Form 10-K filed with the Commission pursuant to Section 13(a) or
15(d) of the 1934 Act after the Effective Date that is incorporated
by reference in the Registration Statement. The Commission has not
issued any order preventing or suspending the use of any
Preliminary Prospectus or the Basic Prospectus or suspending the
effectiveness of the Registration Statement, and no proceeding or
examination for such purpose has been instituted or, to the
Partnership’s knowledge, threatened by the Commission. The
Commission has not notified the Partnership of any objection to the
use of the form of the Registration Statement.
(b)
Form of Documents . The Registration Statement complied and
will comply in all material respects on each Effective Date and on
the applicable Delivery Date, and any amendment to the Registration
Statement filed after the date hereof will comply in all material
respects when filed, to the requirements of the 1933 Act and the
1933 Act Rules and Regulations. The most recent Preliminary
Prospectus complied, and the Final Prospectus will comply, in all
material respects when filed with the Commission pursuant to Rule
424(b) to the requirements of the 1933 Act and the 1933 Act Rules
and Regulations.
(c)
No Material Misstatements or Omissions in the Registration
Statement . The Registration Statement did not, as of each
Effective Date, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading;
provided , however, that the Partnership makes no
representations or warranties as to the information contained in or
omitted from the Registration Statement in reliance upon and in
conformity with written information furnished to the Partnership by
or on behalf of the Underwriters specifically for inclusion in the
Registration Statement, it being understood and agreed that the
only such information furnished by the Underwriters consists of the
information described as such in Section 13 hereof.
(d)
No Material Misstatements or Omissions in the Final
Prospectus . The Final Prospectus will not, as of its date and
on the applicable Delivery Date, contain an untrue statement of a
material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided ,
however, that the Partnership makes no representations or
warranties as to the information contained in or omitted from the
Final Prospectus in reliance upon and in conformity with written
information furnished to the Partnership by or on behalf of the
Underwriters specifically for inclusion in the Final Prospectus, it
being understood and agreed that the only such information
furnished by the Underwriters consists of the information described
as such in Section 13 hereof.
(e)
No Material Misstatements or Omissions in the Disclosure
Package . The Disclosure Package did not, as of the Execution
Time, contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were
made, not misleading; provided , however, that the
Partnership makes no representations or warranties as to the
information contained in or omitted from the Disclosure Package in
reliance upon and in conformity with written information furnished
to the Partnership by or on behalf of the Underwriters specifically
for inclusion in the Disclosure Package, it being understood and
agreed that the only such information furnished by the Underwriters
consists of the information described as such in Section 13
hereof.
(f)
Ineligible Issuer . (i) At the time of
the initial filing of the Registration Statement and (ii) as of the
Execution Time (with such date being used as the determination date
for purposes of this clause (ii)), the Partnership was not and is
not an Ineligible Issuer (as defined in Rule 405), without taking
account of any determination by the Commission pursuant to Rule 405
that it is not necessary that the Partnership be considered an
Ineligible Issuer.
(g)
Issuer Free Writing Prospectus . Each Issuer Free Writing
Prospectus (including, without limitation, any road show that is a
free writing prospectus under Rule 433), when considered together
with the Disclosure Package as of the Execution Time, did not
contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not
misleading. Each Issuer Free Writing Prospectus (including, without
limitation, any road show that is a free writing prospectus under
Rule 433) does not include any information that conflicts with the
information contained in the Disclosure Package, including any
document incorporated by reference therein that has not been
superseded or modified. The foregoing sentence does not apply to
statements in or omissions from any Issuer Free Writing Prospectus
based upon and in conformity with written information furnished to
the Partnership by or on behalf of the Underwriters specifically
for inclusion in the Registration Statement or the Prospectus (or
any supplement thereto), it being understood and agreed that the
only such information furnished by the Underwriters consists of the
information described as such in Section 13 hereof.
(h)
Other Sales . The Partnership has not sold or issued any
Common Units during the six-month period preceding the date of the
Initial Delivery Date, other than pursuant to acquisitions,
employee benefit plans, qualified options plans or other employee
compensation plans or pursuant to outstanding options, rights or
warrants described in the Disclosure Package and the Final
Prospectus.
(i)
Formation and Due Qualification . Formation
and Due Qualification . Each of the Partnership
Entities has been duly formed or incorporated and is validly
existing as a limited partnership or limited liability company, as
the case may be, in good standing under the laws of its respective
jurisdiction of formation or incorporation with all necessary power
and authority to own or lease its properties and to conduct its
business, in all material respects as described in the Disclosure
Package and the Final Prospectus (and any amendments or supplement
thereto). Each of the Partnership Entities is, and at
each Delivery Date will be, duly registered or qualified to do
business and is in good standing as a foreign limited partnership
or foreign limited liability company, as the case may be, in each
jurisdiction in which its ownership or lease of property or the
conduct of its businesses requires such registration or
qualification, except where the failure so to register or qualify
would not (i) have a material adverse effect on the position
(financial or other), partners’ or members’ equity,
results of operations, business or prospects of the Partnership
Entities taken as a whole (a “ Material Adverse Effect
”) or (ii) subject the limited partners of the
Partnership to any material liability or disability, as set forth
under its name on Schedule III to this Agreement.
(j)
Ownership of the General Partner Interest in the Partnership
. The General Partner is the sole general partner of the
Partnership with a 2% general partner interest in the
Partnership. Such general partner interest has been duly
authorized and validly issued in accordance with the First Amended
and Restated Agreement of Limited Partnership of the Partnership
(as amended, 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 Section 17-303 and 17-607 of the Delaware
Revised Uniform Limited Partnership Act (the “ Delaware LP
Act ”)), and the General Partner owns such general
partner interest free and clear of all liens, encumbrances (except
restrictions on transferability described in the Prospectus),
security interests, equities, charges or claims.
(k)
Capitalization . At each Delivery Date (assuming
that the Underwriters do not purchase the Option Units), after
giving effect to the issuance of the Firm Units, the issued and
outstanding limited partner interests of the Partnership will
consist of 16,630,471 Common Units, 3,100,000 subordinated units
(as defined in the Partnership Agreement, the “
Subordinated Units ”) and the incentive distribution
rights (as defined in the Partnership Agreement (the “
Incentive Distribution Rights ”). All outstanding
Common Units, Subordinated Units and the Incentive Distribution
Rights and the limited partner interests represented thereby have
been duly authorized and validly issued in accordance with the
Partnership Agreement and are fully paid (to the extent required
under the Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by matters described in Sections
17-607 and 17-804 of the Delaware LP Act).
(l)
Ownership of Lock-Up Units and
the Incentive Distribution Rights.
(i) EnerVest, Ltd., a Texas limited partnership
(together with its direct and indirect wholly-owned subsidiaries
“ EnerVest ”), owns 67,923 Common Units and
1,611,596 Subordinated Units, (ii) EV Investors, L.P., a
Delaware limited partnership (“ EV Investors ”),
owns 155,000 Subordinated Units, (iii) EnCap Energy Capital
Fund V, L.P., a Texas limited partnership, and EnCap V-B
Acquisitions, L.P., a Texas limited partnership (collectively, the
“ Encap Entities ”), own 25,571 Common Units and
436,170 Subordinated Units (all such Common Units and Subordinated
Units being collectively referred to herein as the “
Lock-Up Units ”) as described in the Disclosure
Package and the Final Prospectus and (v) the General Partner
owns all of the Incentive Distribution Rights; all of such Lock-Up
Units and Incentive Distribution Rights and the limited partner
interests represented thereby have been duly authorized and validly
issued in accordance with the Partnership Agreement, and are fully
paid (to the extent required under the Partnership Agreement) and
nonassessable (except as such nonassessability may be affected by
Sections 17-303 and 17-607 of the Delaware LP Act); and each of
EnerVest, EV Investors and the EnCap Entities owns their respective
Lock-Up Units, and the General Partner owns the Incentive
Distribution Rights, free and clear of all liens, encumbrances
(except restrictions on transferability as described in the
Disclosure Package and the Final Prospectus), security interests,
equities, charges or claims.
(m)
Valid Issuance of the Units. At the Initial
Delivery Date or the Option Unit Delivery Date, as the case may be,
the Firm Units or the Option Units, as the case may be, and the
limited partner interests represented thereby, will be duly
authorized in accordance with the Partnership Agreement and, when
issued and delivered to the Underwriters against payment therefor
in accordance with the terms hereof, will be validly issued, fully
paid (to the extent required under the Partnership Agreement) and
nonassessable (except as such nonassessability may be affected by
Sections 17-303 and 17-607 of the Delaware LP Act).
(n)
Ownership of Membership Interests in the General Partner
. GP LLC owns 100% of the outstanding general partner
interests in the General Partner and EnerVest, the Encap Entities
and EV Investors own 100% of the outstanding limited partner
interests in the General Partner; all of such interests have been
duly authorized and validly issued in accordance with the First
Amended and Restated Agreement of Limited Partnership of the
General Partner (the “ General Partner Partnership
Agreement ”) and are fully paid (to the extent required
under the General Partner LP Agreement) and nonassessable (except
as such nonassessability may be affected by Section 17-303 and
17-607 of the Delaware LP Act), and GP LLC, EnerVest, the EnCap
Entities and EV Investors own such interests free and clear of all
liens, encumbrances (except as described in the Disclosure Package
and the Final Prospectus), security interests, equities, charges or
claims.
(o)
Ownership of Limited Liability Company Interests in the GP
LLC . EnerVest owns 100% of the outstanding limited
liability company interests in GP LLC; all of such interests have
been duly authorized and validly issued in accordance with the
Amended and Restated Limited Liability Company Agreement of the GP
LLC (the “ GP LLC LLC Agreement ”) and are fully
paid (to the extent required under the GP LLC LLC Agreement) and
nonassessable (except as such nonassessability may be affected by
Section 18-607 of the Delaware Limited Liability Company Act
(the “ Delaware LLC Act ”)), and EnerVest owns
such interests free and clear of all liens, encumbrances (except as
described in the Disclosure Package and the Final Prospectus),
security interests, equities, charges or claims.
(p)
Ownership of Partnership Interests in the Operating
Partnership . Operating Partnership GP owns 100% of
the outstanding general partner interests in the Operating
Partnership and the Partnership owns 100% of the outstanding
limited partner interests in the Operating Partnership; all of such
interests have been duly authorized and validly issued in
accordance with the Second Amended and Restated Agreement of
Limited Partnership of the Operating Partnership (the “
Operating Partnership LP Agreement ”) and are fully
paid (to the extent required under the Operating Partnership LP
Agreement) and nonassessable (except as such nonassessability may
be affected by Section 17-303 and 17-607 of the Delaware LP
Act), and Operating Partnership GP and the Partnership owns such
interests free and clear of all liens, encumbrances (except as
described in the Disclosure Package and the Final Prospectus),
security interests, equities, charges or claims.
(q)
Ownership of Limited Liability Company Interests in the
Operating Partnership GP . The Partnership owns 100%
of the outstanding limited liability company interests in Operating
Partnership GP; all of such interests have been duly authorized and
validly issued in accordance with the Amended and Restated Limited
Liability Company Agreement of the Operating Partnership GP (the
“ Operating Partnership GP LLC Agreement ”), and
are fully paid (to the extent required under the Operating
Partnership GP LLC Agreement) and nonassessable (except as such
nonassessability may be affected by Section 18-607 of the
Delaware LLC Act), and the Partnership owns such interests free and
clear of all liens, encumbrances (except as described in the
Disclosure Package and the Final Prospectus), security interests,
equities, charges or claims.
(r)
Ownership of the Subsidiaries . The Partnership owns,
directly or indirectly, 100% of the limited liability company
interests, partnership interests or capital stock, as the case may
be, in EVPP GP LLC, a Delaware limited liability company (“
EVPP GP ”), EVCG GP LLC, a Delaware limited liability
company (“ EVCG GP ”), EnerVest Production
Partners, Ltd., a Texas limited partnership (“ EVPP
”), EnerVest Monroe Gathering, Ltd., a Texas limited
partnership (“ Gathering ”), EnerVest Monroe
Marketing, Ltd., a Texas limited partnership (“
Marketing ”), CGAS Properties, L.P., a Delaware
limited partnership (“ Clinton Properties ”),
EnerVest Cargas, Ltd., a Texas limited partnership (“ EV
Cargas ”), Lower Cargas Operating Company, LLC, a
Louisiana limited liability company (“ LCOC ”),
and EV Energy Finance Corp., a Delaware corporation (“
Finance ”) (collectively, the “
Subsidiaries ,” and together with the Operating
Partnership and the Operating Partnership GP, the “
Operating Subsidiaries ”) free and clear of all liens,
encumbrances (except as described in the Disclosure Package and the
Final Prospectus), security interests, equities, charges and other
claims. Such limited liability company interests, partnership
interests or capital stock, as the case may be, have been duly
authorized and validly issued in accordance with the limited
liability company, limited partnership agreements or
charter documents, as the case may be, of the respective
Subsidiaries, and are fully paid (to the extent required under
their respective limited liability company agreement or limited
partnership agreement) and non-assessable (except as such
nonassessability may be affected by Section 18-607 of the
Delaware LLC Act, in the case of a Delaware limited liability
company; Sections 17-303 and 17-607 of the Delaware LP Act, in
the case of a Delaware limited partnership; Section 153.210 of the
Texas Business Organizations Code, in the case of a Texas limited
partnership; and Section 1328 of the Louisiana Limited Liability
Act, in the case of a Louisiana limited liability
company).
(s)
No Other Subsidiaries. Other than ownership
interests in the Operating Subsidiaries, the Partnership does not
own or control directly or indirectly, any corporation, association
or other entity other than the subsidiaries listed in Exhibit 21.1
to the Partnership’s Annual Report on Form 10-K for the most
recent fiscal year. Neither the Partnership nor any of its
subsidiaries own, directly or indirectly, any equity or long-term
debt securities of any corporation, partnership, limited liability
company, joint venture, association or other entity, other than as
set forth in Exhibit 21.1 to the Partnership’s Annual Report
on Form 10-K for the most recent fiscal year. Other than its
ownership of its general partner interests in the Partnership, the
General Partner does not own, and as of each Delivery Date will not
own, directly or indirectly, any equity or long-term debt
securities of any corporation, partnership, limited liability
company, joint venture, association or other
entity. Other than its ownership of its general partner
interests in the General Partner, GP LLC does not own, and as of
each Delivery Date will not own, directly or indirectly, any equity
or long-term debt securities of any corporation, partnership,
limited liability company, joint venture, association or other
entity.
(t)
No Preemptive Rights, Registration Rights or Options.
Except as described in the Disclosure Package and the
Final Prospectus, there are no options, warrants, preemptive rights
or other rights to subscribe for or to purchase, nor any
restriction upon the voting or transfer of, any partnership or
limited liability company interests in any Partnership Entity, in
each case pursuant to the partnership agreement or limited
liability company agreement of such Partnership Entity
(collectively, the “ Organizational Agreements
”) or the certificate of limited partnership or formation or
incorporation, bylaws or other organizational documents of such
Partnership Entity (collectively together with the Organizational
Agreements, the “ Organizational Documents ”) or
any other agreement or instrument to which such Partnership Entity
is a party or by which it is bound. Except for any such
rights as have been effectively waived, neither the filing of the
Registration Statement, the Preliminary Prospectus or the Final
Prospectus nor the offering or sale of the Units as contemplated by
this Agreement gives rise to any rights for or relating to the
registration of any Common Units or other securities of any of the
Partnership Entities. Except as described in the
Disclosure Package and the Final Prospectus and for options granted
pursuant to employee benefit plans, qualified unit option plans, or
other employee compensation plans in effect as of the Execution
Time, there are no outstanding options or warrants to purchase any
capital stock or partnership or membership interests of any of the
Partnership Entities.
(u)
Authority and Authorization. The Partnership has
all requisite power and authority to issue, sell and deliver the
Units, in accordance with and upon the terms and conditions set
forth in this Agreement, the Partnership Agreement, the
Registration Statement, the Disclosure Package and the Final
Prospectus. At each Delivery Date, all corporate, partnership and
limited liability company action, as the case may be, required to
be taken by the Partnership Entities or any of their stockholders,
members or partners for the authorization, issuance, sale and
delivery of the Units shall have been validly taken.
(v)
Authorization of Underwriting Agreement. This
Agreement has been duly authorized and validly executed and
delivered by each of the EVEP Parties.
(w)
Enforceability of Other Agreements. Each of the
Organizational Agreements has been duly authorized, executed and
delivered by the parties thereto and is a valid and legally binding
agreement of such party, enforceable against such party in
accordance with its terms; provided that, the enforceability
thereof may be limited by bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws relating to
or affecting creditors’ rights generally and by general
principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law); and
provided , further, that the indemnity, contribution and
exoneration provisions contained in any of such agreements may be
limited by applicable laws and public policy.
(x)
No Conflicts . None of the offering, issuance and
sale by the Partnership of the Units, the execution, delivery and
performance of this Agreement by the EVEP Parties or the
consummation of the transactions contemplated hereby
(i) conflicts or will conflict with or constitutes or will
constitute a violation of the Organizational Documents,
(ii) conflicts or will conflict with or constitutes or will
constitute a breach or violation of, or a default (or an event
which, with notice or lapse of time or both, would constitute such
a default) under any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which any of
the Partnership Entities is a party or by which any of them or any
of their respective properties may be bound, (iii) violates or
will violate any statute, law or regulation or any order, judgment,
decree or injunction of any court or governmental agency or body
directed to any of the Partnership Entities or any of their
properties in a proceeding to which any of them or their property
is a party or (iv) results or will result in the creation or
imposition of any lien, charge or encumbrance upon any property or
assets of any of the Partnership Entities, which conflicts,
breaches, violations, defaults or liens, in the case of
clauses (ii), (iii) or (iv), would, individually or in the
aggregate, have a Material Adverse Effect or could materially
impair the ability of any of the Partnership Entities to perform
their obligations under this Agreement.
(y)
No Consents . No permit, consent, approval, authorization,
order, registration, filing or qualification (“
Consent ”) of or with any court, governmental agency
or body having jurisdiction over any of the Partnership Entities or
any of their respective properties is required in connection with
the offering, issuance and sale by the Partnership of the Units,
the execution, delivery and performance of this Agreement by the
EVEP Parties, or the consummation by the Partnership Entities of
the transactions contemplated hereby, except for such consents,
approvals, authorizations, orders and registrations or
qualifications as may be required under the 1933 Act, the 1933 Act
Rules and Regulations, the 1934 Act and the rules and regulations
thereunder (the “ 1934 Act Rules and Regulations
”) and state securities or “Blue Sky” laws and
applicable rules and regulations under such laws.
(z)
No Default . None of the Partnership Entities is
(i) in violation of its Organizational Documents (ii) in
violation of any law, statute, ordinance, administrative or
governmental rule or regulation applicable to it or of any order,
judgment, decree or injunction of any court or governmental agency
or body having jurisdiction over it or (iii) in breach,
default (or an event which, with notice or lapse of time or both,
would constitute such a default) or violation in the performance of
any obligation, agreement or condition contained in any bond,
debenture, note or any other evidence of indebtedness or in any
agreement, indenture, lease or other instrument to which it is a
party or by which it or any of its properties may be bound, which
breach, default or violation in the case of clause (ii) or
(iii) would, if continued, have a Material Adverse Effect or
could materially impair the ability of any of the Partnership
Entities to perform their obligations under this
Agreement. To the knowledge of the EVEP Parties, no
third party to any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which any of the
Partnership Entities is a party or by which any of them is bound or
to which any of their properties is subject, is in breach, default
or violation of any such agreement, which breach, default or
violation would, if continued, have a Material Adverse Effect or
could materially impair the ability of any of the Partnership
Entities to perform their obligations under this
Agreement.
(aa)
Conformity of Securities to Descriptions in the Disclosure
Package and the Final Prospectus . The Units, when
issued and delivered in accordance with the terms of the
Partnership Agreement against payment therefor as provided herein
will conform in all material respects to the description thereof
contained in the Disclosure Package and the Final
Prospectus.
(bb)
Independent Public Accountants. The accountants,
Deloitte & Touche LLP, who have certified the audited financial
statements contained or incorporated by reference in the
Registration Statement and the most recent Preliminary Prospectus
(or any amendment or supplement thereto), are an independent
registered public accountants with respect to the Partnership and
the General Partner as required by the 1933 Act and the 1933 Act
Rules and Regulations and the rules and regulations of the Public
Company Accounting Oversight Board (the “ PCAOB
”).
(cc)
Financial Statements. As of March 31, 2009, the
Partnership would have had, on the consolidated, as adjusted basis
indicated in the Disclosure Package and the Final Prospectus, a
capitalization as set forth therein. The historical financial
statements (including the related notes and supporting schedules)
contained or incorporated by reference in the Registration
Statement, the Disclosure Package and the Final Prospectus,
together with the related notes (and any amendment or supplement
thereto) comply as to form in all material respects with the
requirements of Regulation S-X under the 1933 Act and present
fairly in all material respects the financial position, results of
operations and cash flows of the entities purported to be shown
thereby on the basis stated therein at the respective dates or for
the respective periods to which they apply and have been prepared
in accordance with generally accepted accounting principles
consistently applied throughout the periods involved, except to the
extent disclosed therein. The selected financial
information set forth in the Registration Statement, the Disclosure
Package and the Final Prospectus (and any amendment or supplement
thereto) is accurately presented in all material respects and
prepared on a basis consistent with the audited and unaudited
historical consolidated financial statements and pro forma
financial statements, as applicable, from which it has been
derived. There are no financial statements (historical or pro
forma) that are required to be contained or incorporated by
reference in the Registration Statement, the Prospectus and the
Disclosure Package that are not contained or incorporated by
reference as required.
(dd)
Independent Petroleum Engineers . Cawley,
Gillespie & Associates, Inc. Services, whose reports
dated December 31, 2008, 2007 and 2006 are referenced in the
Registration Statement, Disclosure Package and the Final Prospectus
and who has delivered the letter referred to in Section 6(g)
hereof, was, as of the date of each such report, and is, as of the
date hereof, an independent reserve engineer with respect to the
Partnership.
(ee)
Title to Real Property . The Partnership Entities
have good, valid and indefeasible title to all of the interests in
oil and gas properties underlying the Partnership Entities
estimates of their net proved reserves contained in the
Registration Statement, the Disclosure Package and the Final
Prospectus and to all other real and personal property reflected in
the Registration Statement, the Disclosure Package and the Final
Prospectus as assets owned by them, in each case, free and clear of
all (i) liens and security interests or (ii) other claims and other
encumbrances (other than liens or security interests) except, in
each case, (1) as described, and subject to the limitations
contained, in the Registration Statement, the Disclosure Package
and the Final Prospectus or (2) such as do not materially interfere
with the use of such properties taken as a whole as they have been
used in the past and are proposed to be used in the future as
described, and subject to limitations contained, in the
Registration Statement, the Disclosure Package and the Final
Prospectus; provided that, with respect to any real property
and buildings held under lease by any Partnership Entity, such real
property and buildings are held under valid and subsisting and
enforceable leases with such exceptions as do not materially
interfere with the use of the properties of the Partnership
Entities taken as a whole as they have been used in the past as
described, subject to the limitations contained, in the
Registration Statement, the Disclosure Package and the Final
Prospectus and are proposed to be used in the future as described
in contained in the Registration Statement, the Disclosure Package
and the Final Prospectus; the leases, mineral interests, operating
agreements and other contract rights to which the Partnership
Entities are a party give the Partnership Entities the right, in
all material respects, to explore, develop or produce hydrocarbons
as described, and subject to the limitations contained, in the
Registration Statement, the Disclosure Package and the Final
Prospectus. The care taken by the Partnership Entities
in acquiring or otherwise procuring such leases or mineral
interests was generally consistent with standard industry practices
in the areas in which the Partnership Entities operate for
acquiring or procuring leases and interests therein to explore,
develop or produce hydrocarbons.
(ff)
Information Underlying Reserve Report . The
information underlying the estimates of reserves of the Partnership
Entities, which was supplied by the Partnership Entities to Cawley,
Gillespie & Associates, Inc., for purposes of preparing the
reserve reports, the estimates of net proved reserves and pre-tax
present value, discounted at 10%, attributable thereto, and the
letters (the “ Reserve Report Letters ”) of
Cawley, Gillespie & Associates, Inc., including, without
limitation, production volumes, costs of operation and development,
current prices for production, agreements relating to current and
future operations and sales of production, was true and correct in
all material respects on the dates such estimates were made and
such information was supplied and was prepared in accordance with
customary industry practices; other than normal production of the
reserves and intervening market commodity price fluctuations, the
Partnership Entities are not aware of any facts or circumstances
that would result in a material adverse change in the reserves, or
the present value of future net cash flows therefrom, as described
in the Registration Statement, Disclosure Package and the Final
Prospectus and as reflected in the Reserve Report Letters;
estimates of such reserves and present values as described in the
Registration Statement, Disclosure Package and the Final Prospectus
and reflected in the Reserve Report Letters comply in all material
respects with the applicable requirements of Regulation S-X and
Industry Guide 2 under the 1933 Act.
(gg)
No Material Adverse Change. None of the Partnership Entities
has sustained, since the date of the latest audited financial
statements contained or incorporated by reference in the
Registration Statement, the Disclosure Package and the Final
Prospectus, any material loss or interference with its business
from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor dispute or court or
governmental action, investigation, order or decree, otherwise than
as set forth or contemplated in the Registration Statement, the
Disclosure Package and the Final Prospectus (or any amendment or
supplement thereto). Except as disclosed in the Registration
Statement, the Prospectus and the Disclosure Package, subsequent to
the respective dates as of which such information is given in the
Registration Statement, the Disclosure Package and the Final
Prospectus (or any amendment or supplement thereto), (i) none
of the Partnership Entities has incurred any liability or
obligation, indirect, direct or contingent, or entered into any
transactions, not in the ordinary course of business, that, singly
or in the aggregate, is material to the Partnership Entities,
(ii) there has not been any material change in the
capitalization, or material increase in the short-term debt or
long-term debt, of any Partnership Entity and (iii) there has
not been any material adverse change, or any development involving
or which may reasonably be expected to involve, singly or in the
aggregate, a prospective material adverse change in or affecting
the general affairs, business, prospects, properties, management,
condition (financial or other), partners’ equity,
members’ equity, net worth or results of operations of the
Partnership Entities.
(hh)
Legal Proceedings or Contracts to be Described or Filed.
There are no legal or governmental proceedings pending
or, to the knowledge of the EVEP Parties, threatened, against any
of the Partnership Entities, or to which any of the Partnership
Entities is a party, or to which any of their respective properties
is subject, that are required to be described in the Registration
Statement, the Disclosure Package and the Final Prospectus (or any
amendment or supplement thereto) but are not described as required,
and there are no agreements, contracts, indentures, leases or other
instruments that are required to be described in the Registration
Statement, the Disclosure P
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