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Document Preview Common Unit Redemption Agreement |
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Title: |
Common Unit Redemption Agreement |
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Entities: |
Citigroup Global Markets Inc.; Lehman Brothers Inc.; McDonald Investments Inc.; Sunoco Logistics Partners LP; Sunoco, Inc. |
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Date: |
2005 |
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Size: |
Preview shows 6KB of 36KB total |
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Price: |
$38 |
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ID: |
#900935 |
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COMMON UNIT REDEMPTION AGREEMENT
This COMMON UNIT REDEMPTION AGREEMENT (this "Agreement"), is made and
entered into as of May 17, 2005, by and between Sunoco Logistics Partners L.P.,
a Delaware limited partnership (the "Partnership") and Sunoco Partners LLC, a
Pennsylvania limited liability company (the "Holder").
WHEREAS, the Holder now owns 6,301,005 common units representing limited
partner interests in the Partnership (the "Common Units");
WHEREAS, the Partnership desires to increase the public float of the Common
Units;
WHEREAS, the Partnership and the Holder, among the other parties thereto,
have entered into an underwriting agreement of even date herewith (the
"Underwriting Agreement") with Lehman Brothers Inc., Citigroup Global Markets
Inc., Goldman, Sachs & Co., KeyBanc Capital Markets, a division of McDonald
Investments Inc., RBC Capital Markets Corporation and Stifel Nicolaus & Company,
Incorporated (collectively, the "Underwriters") pursuant to which the
Partnership is publicly offering (the "Public Offering") for cash (i) 2,500,000
Common Units (the "Primary Units") and (ii) in the event the Underwriters
exercise their over-allotment option pursuant to the Underwriting Agreement, up
to an additional 375,000 Common Units (the "Option Units"), in each case
pursuant to the Partnership's registration statement on Form S-3 (File No.
333-103710) (as amended to the date hereof, the "Registration Statement") and a
prospectus supplement (together with the prospectus included in the Registration
Statement, the "Prospectus") filed under Rule 424 under the Securities Act (as
defined herein); and
WHEREAS, the Holder desires to transfer to the Partnership, and the
Partnership desires to redeem from the Holder, up to an aggregate of 2,875,000
Common Units upon the terms and conditions hereinafter set forth.
NOW THEREFORE, in consideration of the mutual covenants, conditions and
agreements set forth herein, and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1. Redemption of Units. On the Initial Closing Date (as defined below), and
subject to the terms and conditions and in reliance upon the representations and
warranties herein set forth, the Holder agrees to transfer to the Partnership,
and the Partnership agrees to redeem from the Holder, up to 2,500,000 Common
Units (the "Initial Redemption Units") from the Holder, at a price per unit of
$35.906 (the "Redemption Price"), which is equal to the net proceeds per unit
received by the Partnership in the Public Offering, after underwriting discounts
and commissions, but before expenses (the "Initial Redemption"). In addition,
upon the Additional Closing Date (as defined below), and subject to the terms
and conditions and in reliance on the representations and warranties herein set
forth, the Holder agrees to transfer to the Partnership, and the Partnership
agrees to redeem from the Holder, at the Redemption Price, a number of Common
Units (the "Additional Redemption Units" and, together with the Initial
Redemption Units, the "Redemption Units") equal to the number of Option Units
purchased from the Partnership by the Underwriters (the "Additional
Redemption").
<PAGE>
1.1 The closings of the Initial Redemption and the Additional
Redemption shall take place at such places and such times so as to coincide with
the Underwriters' purchase of Primary Units (the "Initial Closing Date") and
Option Units (the "Additional Closing Date") from the Partnership in the Public
Offering.
1.2 At each closing, the Holder shall assign and transfer to the
Partnership all its right, title and interest in and to the Redemption Units
free and clear of all liens or other limitations or restrictions and deliver to
the Partnership the certificate or certificates representing the Redemption
Units, duly endorsed in blank or accompanied by separate stock powers so
endorsed. The Holder shall execute the certificate of transfer on the back of
the certificate or certificates representing the Redemption Units.
1.3 The Partnership shall pay the aggregate Redemption Price for the
Initial Redemption and the Additional Redemption, as applicable, on the Initial
Closing Date and the Additional Closing Date, as applicable, without deduction,
by wire transfer of immediately available funds to an account of the Holder (the
number for which account shall have been furnished to the Partnership at least
one business day prior to the Initial Closing Date and the Additional Closing
Date, as applicable).
1.4 The Partnership hereby acknowledges and agrees that, by executing
and delivering this Agreement and consummating the transactions contemplated
hereby, the Holder is not waiving, in whole or in part, any registration rights
it has pursuant to Section 7.12 of the Second Amended and Restated Agreement of
Limited Partnership of the Partnership dated as of July 20, 2004 (the
"Partnership Agreement") with respect to (i) any Units subject to this Agreement
that are not redeemed pursuant to this Agreement or (ii) any other Common Units
owned by the Holder that are not Redemption Units subject to this Agreement,
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