exv10w1



 








Exhibit 10.1




8,250,000 Units




PERMIAN BASIN ROYALTY TRUST




Units of Beneficial Interest




UNDERWRITING AGREEMENT




August 2, 2005




Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004



Lehman Brothers Inc.

745 Seventh Avenue

New York, New York 10019



As Representatives of the several
  Underwriters
named in Schedule 1 attached hereto



Ladies and Gentlemen:




          Burlington Resources Inc., a Delaware corporation (“Burlington”), together with its indirect,
wholly owned subsidiary Burlington Resources Oil & Gas Company LP, a Delaware limited partnership
(“BROG”, and together with Burlington, the “Selling Unitholder Parties”), propose to sell an
aggregate of 8,250,000 units (the “Firm Units”) of beneficial interest (the “Units”) of PERMIAN
BASIN ROYALTY TRUST, a trust formed under the laws of the State of Texas (the “Trust”). In
addition, the Selling Unitholder Parties propose to grant to the underwriters (the “Underwriters”)
named in Schedule 1 attached to this agreement (this “Agreement”) an option to purchase up
to an additional 1,237,500 Units on the terms set forth in Section 3 (the “Option Units”). The
Firm Units and the Option Units, if purchased, are hereinafter collectively called the “Offered
Units.” This is to confirm the agreement concerning the purchase of the Offered Units from the
Selling Unitholder Parties by the Underwriters.




          1. Representations, Warranties and Agreements of the Trust and the Selling Unitholder Parties.
Each of the Trust and the Selling Unitholder Parties represent, warrant and agree that:





     (a) A registration statement on Form S-3 with respect to the Offered Units has (i) been
prepared by the Trust and the Selling Unitholder Parties 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 or made available
to you by the Trust or Burlington as the Representatives (the “Representatives”) of the
Underwriters. As used in this Agreement, “Effective Time” means the date and the time









 



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as of
which such registration statement, or the most recent post-effective amendment thereto, if
any, was declared effective by the Commission; “Effective Date” means the date of the
Effective Time; “Preliminary Prospectus” means each prospectus included in such registration
statement, or amendments thereto, before such registration statement became effective under
the Securities Act and any prospectus filed with the Commission by the Trust and the Selling
Unitholder Parties with the consent of the Representatives pursuant to Rule 424(a) or (b)(3)
of the Rules and Regulations; “Registration Statement” means such registration statement, as
amended at the Effective Time, including any documents incorporated by reference therein at
such time and, if Rule 430A of the Rules and Regulations is used, all information contained
in the final prospectus filed with the Commission pursuant to Rule 424(b) of the Rules and
Regulations and deemed to be a part of the registration statement as of the Effective Time
pursuant to paragraph (b) of Rule 430A of the Rules and Regulations; and “Prospectus” means
such final prospectus, as first filed with the Commission pursuant to paragraph (1), (2),
(4) or (5) of Rule 424(b) of the Rules and Regulations. Reference made herein to any
Preliminary Prospectus or to the Prospectus shall be deemed to refer to and include any
documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the
Securities Act, as of the date of such Preliminary Prospectus or the Prospectus, as the case
may be, and any reference to any amendment or supplement to any Preliminary Prospectus or
the Prospectus shall be deemed to refer to and include any document filed under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), after the date of such
Preliminary Prospectus or the Prospectus, as the case may be, and incorporated by reference
in such Preliminary Prospectus or the Prospectus, as the case may be; and any reference to
any amendment to the Registration Statement shall be deemed to include any annual report of
the Trust or the Selling Unitholder Parties filed with the Commission pursuant to Section
13(a) or 15(d) of the Exchange Act after the Effective Time 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 Prospectus or suspending the
effectiveness of the Registration Statement, and no proceeding for such purpose has been
instituted, or to the knowledge of the Trust and the Selling Unitholder Parties, threatened
by the Commission.




     (b) The Registration Statement conformed in all material respects at the Effective
Time, and any post-effective amendment to the Registration Statement filed after the date
hereof will conform in all material respects on the applicable effective date, to the
requirements of the Securities Act and the Rules and Regulations. The Prospectus will
conform in all material respects when filed with the Commission pursuant to Rule 424(b) (as
defined in Section 5) to the requirements of the Securities Act and the Rules and
Regulations. The Registration Statement, at the Effective Time, and the Prospectus, as of
its date and on the applicable Delivery Date, do not and will not 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 (in the case of the Prospectus, 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
Registration Statement or the Prospectus in reliance upon and in conformity with
written information furnished to the Trust or the Selling Unitholder Parties through the
Representatives by or on behalf of any Underwriter specifically for inclusion therein,









 



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which information is specified in Section 10(f). The conditions for use of Form S-3, as set forth
in the General Instructions thereto, have been satisfied.



          2.1 Representations, Warranties and Agreements of the Trust. The Trust represents, warrants
and agrees that:





     (a) The documents incorporated by reference in the Registration Statement and the
Prospectus from the Trust’s filings with the Commission, when filed with the Commission,
conformed in all material respects to the requirements of the Exchange Act and the rules and
regulations of the Commission thereunder, and none of such documents contained, or on the
applicable Delivery Date will contain, an untrue statement of a material fact or omitted, or
on the applicable Delivery Date, will omit, to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; and any further
documents so filed by the Trust and incorporated by reference in the Registration Statement
and the Prospectus, when filed with Commission, will conform in all material respects to the
requirements of the Securities Act and the Exchange Act, as applicable, and the rules and
regulations of the Commission thereunder and will not 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.




     (b) The Trust has been duly organized and is validly existing under the laws of its
jurisdiction of organization. The Trust has all power and authority necessary to own or
hold its assets and to conduct the businesses in which it is engaged. The Trust does not
own or control, directly or indirectly, any corporation, association or other entity.




     (c) The Trust has an authorized capitalization as set forth in the Prospectus, and all
of the issued Units of the Trust have been duly authorized and validly issued, are fully
paid and non-assessable, conform to the description thereof contained in the Prospectus and
were issued in compliance with federal and state securities laws and not in violation of any
preemptive right, resale right, right of first refusal or similar right. Except for the
rights of the Underwriters pursuant to this Agreement, no options, warrants or other rights
to purchase or exchange any securities for Units are outstanding.




     (d) The Units to be sold by the Selling Unitholder Parties under this Agreement have
been duly authorized and validly issued, are fully paid and non-assessable and conform in
all material respects to the description thereof contained in the Prospectus.




     (e) The Trust has all requisite power and authority to execute, deliver and perform its
obligations under this Agreement. This Agreement has been duly and validly authorized,
executed and delivered by the Trust.




     (f) The execution, delivery and performance of this Agreement by the Trust and the
consummation of the transactions contemplated hereby will not (i) conflict with or result in
a breach or violation of any of the terms or provisions of, impose any lien, charge or
encumbrance upon any property or assets of the Trust, or constitute a default









 



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under, any
indenture, mortgage, deed of trust, loan agreement, license or other agreement or instrument
to which the Trust is a party or by which the Trust is bound or to which any of the property
or assets of the Trust is subject; (ii) result in any violation of the provisions of the
organizational documents of the Trust; or (iii) result in any violation of any statute or
any order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Trust or any of its properties or assets.




     (g) Except for the registration of the Offered Units under the Securities Act and such
consents, approvals, authorizations, registrations or qualifications as may be required
under the Exchange Act and applicable state securities laws in connection with the purchase
and sale of the Offered Units by the Underwriters, no consent, approval, authorization or
order of, or filing or registration with, any court or governmental agency or body having
jurisdiction over the Trust or any of its properties or assets is required for the
execution, delivery and performance of this Agreement by the Trust and the consummation of
the transactions contemplated hereby.




     (h) There are no contracts, agreements or understandings between the Trust and any
person (other than the Selling Unitholder Parties) granting such person the right to require
the Trust to file a registration statement under the Securities Act with respect to any
securities of the Trust owned or to be owned by such person or to require the Trust to
include such securities in the securities registered pursuant to the Registration Statement
or in any securities being registered pursuant to any other registration statement filed by
the Trust under the Securities Act.




     (i) The Trust has not sold or issued any securities that would be integrated with the
offering of the Offered Units contemplated by this Agreement pursuant to the Securities Act,
the Rules and Regulations or the interpretations thereof by the Commission.




     (j) The Trust has not sustained, since the date of the latest audited financial
statements included or incorporated by reference in the Prospectus (exclusive of any
amendment or supplement thereto after the date hereof), any loss or interference with its
business from fire, explosion, flood or other calamity, whether or not covered by insurance,
or from any labor dispute or court or governmental action, order or decree, and since such
date, there has not been any change in the capitalization of the Trust or any adverse
change, or any development involving a prospective adverse change, in or affecting the
financial condition, distributable income, trust corpus, assets, business or prospects of
the Trust, in each case except as could not reasonably be expected to have a material
adverse effect on the condition (financial or otherwise), distributable income, trust
corpus, assets, business or prospects of the Trust (a “Trust Material Adverse Effect”).




     (k) Since the date as of which information is given in the Prospectus and except as may
otherwise be described in the Prospectus (exclusive of any amendment or supplement thereto
after the date hereof), the Trust has not (i) incurred any liability or obligation, direct
or contingent, other than liabilities and obligations that were
incurred in









 



5



the ordinary
course of business or (ii) entered into any material transaction not in the ordinary course
of business.




     (l) The historical financial statements (including the related notes and supporting
schedules) of the Trust filed as part of the Registration Statement or included or
incorporated by reference in the Prospectus from the Trust’s filings with the Commission
comply as to form in all material respects with the requirements of Regulation S-X under the
Securities Act and Staff Accounting Bulletin Topic 12:E of the Commission promulgated
thereunder and present fairly the financial condition, distributable income and changes in
trust corpus of the Trust purported to be shown thereby at the dates and for the periods
indicated and have been prepared in conformity with accounting principles permitted for
royalty trusts by the Commission pursuant to Staff Accounting Bulletin Topic 12:E applied on
a consistent basis throughout the periods involved, except as otherwise stated therein.




     (m) Deloitte & Touche LLP, who have certified certain financial statements of the
Trust, whose report appears in the Prospectus or is incorporated by reference therein and
who have delivered the initial letter referred to in Section 9(f)(1) hereof, is an
independent registered public accounting firm as required by the Securities Act and the
Rules and Regulations.




     (n) Cawley, Gillespie & Associates, Inc., whose report with respect to certain
properties of the Trust appears in the Prospectus (or is incorporated by reference therein),
was, as of the date of such report, and is, as of the date hereof, an independent petroleum
engineer with respect to the Trust.




     (o) The Trust has good and defensible title to all real property and good and
marketable title to all personal property owned by it, in each case free and clear of all
liens, encumbrances and defects, except such as are described in the Prospectus or such as
do not materially affect the value of such property and do not materially interfere with the
use made and proposed to be made of such property by the Trust; and all assets held under
lease by the Trust are held by it under valid, subsisting and enforceable leases, with such
exceptions as do not materially interfere with the use made and proposed to be made of such
assets by the Trust.




     (p) There are no legal or governmental proceedings pending to which the Trust is a
party or of which any property or assets of the Trust is the subject that could reasonably
be expected to have a Trust Material Adverse Effect or could reasonably be expected to have
a material adverse effect on the performance of this Agreement or the consummation of the
transactions contemplated hereby; and to the knowledge of the Trust, no such proceedings are
threatened or contemplated by governmental authorities or others.




     (q) There are no contracts or other documents to which the Trust is a party of a
character required to be described in the Registration Statement or Prospectus or to be
filed as exhibits to the Registration Statement or incorporated by reference therein that
are not described and filed or incorporated by reference therein as required. To the









 



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Trust’s knowledge, no other party to any such contract, agreement or arrangement has any
intention not to render full performance as contemplated by the terms thereof.




     (r) No relationship, direct or indirect, exists between or among the Trust, on the one
hand, and the trustee, unitholders, customers or suppliers of the Trust, on the other hand,
that is required to be described in the Prospectus which is not so described.




     (s) The Trust has filed all federal, state, local and foreign income and franchise tax
returns required to be filed through the date hereof, subject to permitted extensions, and
has paid all taxes due thereon, and no tax deficiency has been determined adversely to the
Trust, nor does the Trust have any knowledge of any tax deficiency that could reasonably be
expected to have a Trust Material Adverse Effect.




     (t) The Trust is not (i) in violation of its organizational documents, (ii) in default,
and no event has occurred that, with notice or lapse of time or both, would constitute such
a default, in the due performance or observance of any term, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement, license or other agreement or
instrument to which it is a party or by which it is bound or to which any of its properties
or assets is subject or (iii) in violation of any statute or any order, rule or regulation
of any court or governmental agency or body having jurisdiction over it or its property or
assets or has failed to obtain any license, permit, certificate, franchise or other
governmental authorization or permit necessary to the ownership of its property or to the
conduct of its business, except in the case of clauses (ii) and (iii), to the extent any
such conflict, breach, violation or default could not, individually or in the aggregate,
reasonably be expected to have a Trust Material Adverse Effect.




     (u) The Trust is not, and as of the applicable Delivery Date and after giving effect to
the offer and sale of the Offered Units will not be, an “investment company” within the
meaning of such term under the Investment Company Act of 1940, as amended, and the rules and
regulations of the Commission thereunder.




     (v) Since the date of the most recent balance sheet of the Trust reviewed or audited by
Deloitte & Touche LLP (i) the Trust is not aware of (A) any significant deficiencies in the
design or operation of internal controls that could adversely affect the ability of the
Trust to record, process, summarize and report financial data, or any material weaknesses in
internal controls or (B) any fraud, whether or not material, that involves management or
other employees who have a significant role in the internal controls of the Trust, and (ii)
since that date, there have been no significant changes in internal controls or in other
factors that could significantly affect internal controls, including any corrective actions
with regard to significant deficiencies and material weaknesses.




     (w) The Trust has not distributed and, prior to the later to occur of any Delivery Date
and completion of the distribution of the Offered Units, will not distribute any offering
material in connection with the offering and sale of the Offered Units other than the
Preliminary Prospectus and the Prospectus.









 



6



     (x) The Trust has not taken and will not take, directly or indirectly, any action
designed to or that has constituted or that could reasonably be expected to cause or result
in the stabilization or manipulation of the price of any security of the Trust to facilitate
the sale or resale of the Offered Units.




     (y) The Offered Units have been listed on the New York Stock Exchange.




     (z) The Trust is, and at all times prior was, (i) in compliance with any and all
applicable federal, state, local and foreign laws, regulations, ordinances, rules, orders,
judgments, decrees, permits or other legal requirements relating to the protection of human
health and safety, the environment, natural resources or hazardous or toxic substances or
wastes, pollutants or contaminants (“Environmental Laws”), which compliance includes
obtaining, maintaining and complying with all permits and authorizations and approvals
required by Environmental Laws to conduct its businesses and (ii) has not received notice of
any actual or potential liability for the investigation or remediation of any disposal or
release of hazardous or toxic substances or wastes, pollutants or contaminants, except in
the case of clause (i) or (ii) where such non-compliance with or liability under
Environmental Laws could not, individually or in the aggregate, reasonably be expected to
have a Trust Material Adverse Effect; and the Trust has not been named as a “potentially
responsible party” under the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, or any other similar Environmental Law, except with
respect to any matters that, individually or in the aggregate, could not reasonably be
expected to have a Trust Material Adverse Effect. Except as described in the Prospectus,
the Trust is not a party to any proceeding under Environmental Laws in which a governmental
authority is also a party, other than such proceedings regarding which it is believed no
monetary penalties of $100,000 or more will be imposed.




     (aa) The Trust (i) makes and keeps accurate books and records and (ii) maintains and has
maintained 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 the trustee’s
general or specific authorizations, (B) transactions are recorded as necessary to permit
preparation of the Trust’s financial statements in conformity with applicable accounting
principles permitted for royalty trusts by the Commission pursuant to Staff Accounting
Bulletin 12:E and to maintain accountability for its assets, (C) access to the Trust’s
assets is permitted only in accordance with the trustee’s general or specific authorization
and (D) the recorded accountability for the Trust’s assets is compared with existing assets
at reasonable intervals and appropriate action is taken with respect to any differences.




     (bb) (i) The Trust has established and maintains disclosure controls and procedures (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
Trust in the reports it files or submits under the Exchange Act is accumulated and
communicated to the trustee of the Trust, as appropriate, to allow timely decisions
regarding required disclosure to be made and (iii) such disclosure controls and









 



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procedures
are effective in all material respects to perform the functions for which they were
established.



          Any certificate signed by the trustee of the Trust and delivered to the Representatives or
counsel for the Underwriters in connection with the offering of the Offered Units shall be deemed a
representation and warranty by the Trust, as to matters covered thereby, to each Underwriter.




          2.2 Representations, Warranties and Agreements of the Selling Unitholder Parties. The Selling
Unitholder Parties represent, warrant and agree that:





     (a) BROG has, and immediately prior to the applicable Delivery Date will have, good and
valid title to, or a valid “security entitlement” within the meaning of Section 8-501 of the
New York Uniform Commercial Code (the “UCC”) in respect of, the Units to be sold by the
Selling Unitholder Parties hereunder, free and clear of all liens, encumbrances, equities or
claims;




     (b) Upon payment for the Units to be sold by such Selling Unitholder Parties, delivery
of such Units, as directed by the Underwriters, to Cede & Co. (“Cede”) or such other nominee
as may be designated by The Depository Trust Company (“DTC”), registration of such Units in
the name of Cede or such other nominee and the crediting of such Units on the books of DTC
to securities accounts of the Underwriters (assuming that neither DTC nor any such
Underwriter has notice of any adverse claim (within the meaning of Section 8-105 of the UCC
to such Units), (i) DTC shall be a “protected purchaser” of such Units within the meaning of
Section 8-303 of the UCC, (ii) under Section 8-501 of the UCC, the Underwriters will acquire
a valid security entitlement in respect of such Units and (iii) no action based on any
“adverse claim”, within the meaning of Section 8-102 of the UCC, to such Units may be
asserted against the Underwriters with respect to such security entitlement. For purposes
of this representation, such Selling Unitholder Parties may assume that when such payment,
delivery and crediting occur, (A) such Units will have been registered in the name of Cede
or another nominee designated by DTC, in each case on the Trust’s share registry in
accordance with its organizational documents and applicable law, (B) DTC will be registered
as a “clearing corporation” within the meaning of Section 8-102 of the UCC and (C)
appropriate entries to the accounts of the several Underwriters on the records of DTC will
have been made pursuant to the UCC.




     (c) Each of the Selling Unitholder Parties has been duly organized, is validly existing
and in good standing under the laws of its jurisdiction of organization and is duly
qualified to do business and in good standing as a foreign corporation or other business
entity in each jurisdiction in which its ownership or lease of property or the conduct of
its business requires such qualification, except where the failure to be so qualified or in
good standing, individually or in the aggregate, could not reasonably be expected to have a
material adverse effect on the condition (financial or otherwise), distributable income,
assets, management, business or prospects of the Selling Unitholder Parties (a “BR Material
Adverse Effect”). Each of the Selling Unitholder Parties has all power and









 



8



authority
necessary to own or hold its assets and to conduct the business in which it is engaged.




     (d) The Selling Unitholder Parties have full right, power and authority, corporate or
otherwise, to enter into this Agreement. The execution, delivery and performance of this
Agreement by the Selling Unitholder Parties and the consummation by the Selling Unitholder
Parties of the transactions contemplated hereby do not and will not (i) conflict with or
result in a breach or violation of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement, license or other
agreement or instrument to which the Selling Unitholder Parties are a party or by which the
Selling Unitholder Parties are bound or to which any of the property or assets of the
Selling Unitholder Parties is subject, (ii) result in any violation of the provisions of the
charter, by-laws or partnership agreement (or similar organizational documents) of the
Selling Unitholder Parties or (iii) result in any violation of any statute or any order,
rule or regulation of any court or governmental agency or body having jurisdiction over the
Selling Unitholder Parties or the property or assets of the Selling Unitholder Parties which
breaches or violations, in the case of clauses (i) or (iii), would, individually or in the
aggregate, cause a BR Material Adverse Effect or impede or delay the sale of any Units
contemplated by this Agreement.




     (e) Except for the registration of the Offered Units under the Securities Act and such
consents, approvals, authorizations, registrations or qualifications as may be required
under the Exchange Act and applicable state securities laws in connection with the purchase
and sale of the Offered Units by the Underwriters, no consent, approval, authorization or
order of, or filing or registration with, any court or governmental agency or body having
jurisdiction over the Selling Unitholder Parties or the property or assets of the Selling
Unitholder Parties is required for the execution, delivery and performance of this Agreement
by the Selling Unitholder Parties and the consummation by the Selling Unitholder Parties of
the transactions contemplated hereby.




     (f) This Agreement has been duly and validly authorized, executed and delivered by or
on behalf of the Selling Unitholder Parties.




     (g) The Selling Unitholder Parties have not taken and will not take, directly or
indirectly, any action that is designed to or which has constituted or which could
reasonably be expected to cause or result in the stabilization or manipulation of the price
of any security of the Trust to facilitate the sale or resale of the Offered Units.




     (h) The documents incorporated by reference in the Registration Statement and the
Prospectus from Burlington’s filings with the Commission, when filed with the Commission,
conformed in all material respects to the requirements of the Exchange Act and the rules and
regulations of the Commission thereunder, and none of such documents
contained, or on the applicable Delivery Date will contain, an untrue statement of a
material fact or omitted, or on the applicable Delivery Date will omit, to state a material
fact required to be stated therein or necessary to make the statements therein not
misleading; and any further documents so filed by the Selling Unitholder Parties and
incorporated by reference in the Registration Statement and the Prospectus, when filed









 



9



with
Commission, will conform in all material respects to the requirements of the Securities Act
and the Exchange Act, as applicable, and the rules and regulations of the Commission
thereunder and will not 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.




     (i) The historical statements (including the related notes and supporting schedules) or
Burlington filed as part of the Registration Statement or included or incorporated by
reference in the Prospectus from the Selling Unitholders Parties’ filings with the
Commission comply as to form in all material respects with the requirements of Regulation
S-X under the Securities Act and 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 have been prepared in conformity with accounting principles
generally accepted in the United States applied on a consistent basis throughout the periods
involved, except as otherwise stated therein.



     (j) PricewaterhouseCoopers LLP, whose report with respect to the financial statements
of Burlington appears in the Prospectus or is incorporated by reference therein and who have
delivered the initial letter referred to in Section 9(f)(2) hereof, is an independent
registered public accounting firm as required by the Securities Act and the Rules and
Regulations.



     (k) Sproule Associate Limited and Miller and Lents, Ltd., whose reports with respect to
certain properties of the Selling Unitholder Parties appear in the Prospectus (or are
incorporated by reference therein), were, as of the dates of such reports, and are, as of
the date hereof, independent petroleum engineers with respect to the Selling Unitholder
Parties.



     (l) The Selling Unitholder Parties have not sold or issued any securities that would be
integrated with the offering of the Offered Units contemplated by this Agreement pursuant to
the Securities Act, the Rules and Regulations or the interpretations thereof by the
Commission.



          Any certificate signed by any officer of the Selling Unitholder Parties and delivered to the
Representatives or counsel for the Underwriters in connection with the offering of the Offered
Units shall be deemed a representation and warranty by such Selling Unitholder Parties, as to
matters covered thereby, to each Underwriter.




          3. Purchase of the Offered 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 Selling
Unitholder Parties hereby agree to sell the 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.




          In addition, the Selling Unitholder Parties grant to the Underwriters an option to purchase up
to 1,237,500 Option Units, severally and not jointly. Such option will be exercisable in the event
that the Underwriters sell more than the number of Firm Units in the










 



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offering and is exercisable as
provided in Section 5 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
$14.6775 per unit.




          The Selling Unitholder Parties shall not be obligated to deliver any of the Firm Units or
Option Units deliverable on the applicable Delivery Date, except upon payment for all such Offered
Units to be purchased on such Delivery Date as provided herein.




          4. Offering of Offered 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 set forth in the Prospectus.




          5. 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 August 8, 2005, or at such other date or place as shall
be determined by agreement between the Representatives and the Selling Unitholder Parties. 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 Selling Unitholder Parties to or upon the order of the Selling
Unitholder Parties by wire transfer in immediately available funds to the accounts specified by the
Selling Unitholder Parties. Time shall be of the essence, and delivery at the time specified
pursuant to this Agreement is a further condition of the obligation of each Underwriter hereunder.
Delivery of the Firm Units shall be made through the facilities of The Depository Trust Company
unless the Representatives shall otherwise instruct.




          The option granted in Section 3 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 Selling
Unitholder Parties by the Representatives; provided that if such date falls on a day that is not a
business day, the option granted in Section 3 will expire on the next succeeding business day.
Such notice shall set forth the aggregate number of Option Units as to which the option is being
exercised, the names in which the Option Units are to be registered, the denominations in which the
shares of 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. The date
and time the Option Units are delivered are 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.”










 



12




          Delivery of and payment for the Option Units shall be made at the place specified in the first
sentence of the first paragraph of this Section 5 (or at such other place as shall be determined by
agreement between the Representatives and the Selling Unitholder Parties) at 10:00 A.M., New York
City time, on such Option Unit 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 aggregate purchase price of the Option Units to or upon the
order of the Selling Unitholder Parties by wire transfer in immediately available funds to the
account(s) specified by the Selling Unitholder Parties. Time shall be of the essence, and delivery
at the time specified pursuant to this Agreement is a further condition of the obligation of each
Underwriter hereunder. Delivery of the Option Units shall be made through the facilities of The
Depository Trust Company unless the Representatives shall otherwise instruct.




          6. Further Agreements of the Trust and Selling Unitholder Parties. Each of the Trust and
Selling Unitholder Parties agree:





     (a) To prepare the Prospectus in a form approved by the Representatives and to file
such Prospectus pursuant to Rule 424(b) under the Securities Act not later than 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
to the Prospectus prior to the last Delivery Date except as permitted herein; to advise the
Representatives, promptly after it receives notice thereof, of the time when any amendment
to the Registration Statement has been filed or becomes effective or any supplement to the
Prospectus or any amended Prospectus has been filed and to furnish the Representatives with
copies thereof; to file promptly all reports and any definitive proxy or information
statements required to be filed by it with the Commission pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and for so long as
the delivery of a prospectus is required in connection with the offering or sale of the
Offered Units; 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 any Preliminary Prospectus or the Prospectus, of the suspension of the
qualification of the Offered Units for offering or sale in any jurisdiction, of the
initiation or threatening of any proceeding for any such purpose, or of any request by the
Commission for the amending or supplementing of the Registration Statement or the 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 any Preliminary Prospectus or the Prospectus or
suspending any such qualification, to use promptly its best efforts to obtain its
withdrawal;




     (b) To furnish promptly to each of the Representatives and to counsel for the
Underwriters a conformed 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;




     (c) To promptly deliver or make available to the Representatives such number of the
following documents as the Representatives shall reasonably request: (i) each Preliminary
Prospectus, the Prospectus and any amended or supplemented Prospectus









 



13



and (ii) any document
incorporated by reference in the Prospectus (excluding exhibits thereto); and, if the
delivery of a prospectus is required at any time after the Effective Time in connection with
the offering or sale of the Offered 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 in order 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 or
to file under the Exchange Act any document incorporated by reference in the Prospectus in
order to comply with the Securities Act or the Exchange 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;




     (d) To file promptly with the Commission any amendment to the Registration Statement or
the Prospectus or any supplement to the Prospectus that may, in the judgment of the Trust,
the Selling Unitholder Parties or the Representatives, be required by the Securities Act or
requested by the Commission;




     (e) Until the delivery of a prospectus is no longer required in connection with the
offering or sale of the Offered Units, (i) prior to filing with the Commission any amendment
to the Registration Statement or supplement to the Prospectus, or any Prospectus pursuant to
Rule 424(b) of the Rules and Regulations, to furnish a copy thereof to the Representatives
and counsel for the Underwriters and obtain the consent of the Representatives to the
filing, and (ii) prior to filing with the Commission any document incorporated by reference
in the Prospectus, to furnish a copy thereof to the Representatives and counsel for the
Underwriters;




     (f) As soon as practicable after the Effective Date to make generally available to the
Trust’s security holders and to deliver to the Representatives an earnings statement of the
Trust (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 Trust, Rule 158);




     (g) Promptly from time to time to take such action as the Representatives may
reasonably request to qualify the Offered 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 Offered Units; provided that in
connection therewith neither the Trust nor the Selling Unitholder Parties shall be
required to (i) qualify as a foreign corporation 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;









 



14



     (h) For a period of 90 days from the date of the Prospectus (the “Lock-Up Period”),
except (a) for Units to be sold to the Underwriters pursuant to the Underwriting Agreement
and (b) for intercompany transfers of Units among the Selling Unitholder Parties and their
wholly owned direct or indirect subsidiaries, (provided that it shall be a condition to any
such transfer that (i) the transferee/donee agrees to be bound by the terms of this Section
6(h) to the same extent as if the transferee/donee were a party hereto, (ii) no filing by
any party (donor, donee, transferor or transferee) under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), shall be required or shall be voluntarily made in
connection with such transfer or distribution (other than a filing on Form 5, Schedule 13D
or Schedule 13G (or 13D-A or 13G-A) made after the expiration of the 90-day period referred
to above), (iii) no party (donor, donee, transferor or transferee) shall be required by law
(including without limitation the disclosure requirements of the Securities Act of 1933, as
amended, and the Exchange Act) to make, nor shall any such party agree to voluntarily make,
any public announcement of the transfer or disposition, and (iv) the Selling Unitholder
Parties notify the Representatives at least two business days prior to the proposed transfer
or disposition), 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
Units or securities convertible into or exchangeable for Units (other than the Offered
Units), or sell or grant options, rights or warrants with respect to any Units or securities
convertible into or exchangeable for Units, (2) enter into any swap or other derivatives
transaction that transfers to another, in whole or in part, any of the economic benefits or
risks of ownership of such Units, whether any such transaction described in clause (1) or
(2) above is to be settled by delivery of Units or other securities, in cash or otherwise,
(3) file or cause to be filed a registration statement with respect to any Units or
securities convertible, exercisable or exchangeable into Units or any other securities of
the Trust 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;



          7. Further Agreements of the Selling Unitholder Parties. The Selling Unitholder Parties
agree:





     (a) That the Units to be sold by the Selling Unitholder Parties hereunder are subject
to the interest of the Underwriters and that the obligations of the Selling Unitholder
Parties hereunder shall not be terminated by any act of the Selling Unitholder Parties, by
operation of law or the occurrence of any other event, other than by termination of this
Agreement.




     (b) To deliver to the Representatives prior to the Initial Delivery Date a properly
completed and executed United States Treasury Department Form W-8 (if such
Selling Unitholder Party is a non-United States person) or Form W-9 (if such Selling
Unitholder Party is a United States person).



          8. Expenses. The Selling Unitholder Parties agree, whether or not the transactions
contemplated by this Agreement are consummated or this Agreement is terminated, to pay all costs,
expenses, fees and taxes incident to and in connection with (a) the authorization,










 



15



issuance, sale
and delivery of the Offered Units and any stamp duties or other taxes payable in that connection,
and the preparation and printing of certificates for the Offered Units; (b) the preparation,
printing and filing under the Securities Act of the Registration Statement and any amendments and
exhibits thereto, any Preliminary Prospectus, the Prospectus and any amendment or supplement to the
Prospectus; (c) the distribution of the Registration Statement as originally filed and each
amendment thereto and any post-effective amendments thereof (including, in each case, exhibits),
any Preliminary Prospectus, the Prospectus and any amendment or supplement to the Prospectus or any
document incorporated by reference therein, all as provided in this Agreement; (d) the production
and distribution of this Agreement and any other related documents in connection with the offering,
purchase, sale and delivery of the Offered Units; (e) the listing of the Units on the New York
Stock Exchange and/or any other exchange; (f) the qualification of the Offered Units under the
securities laws of the several jurisdictions as provided in Section 6(g) and the preparation,
printing and distribution of a Blue Sky Memorandum (including related fees and expenses of counsel
to the Underwriters); (g) the investor presentations on any “road show” undertaken in connection
with the marketing of the Offered Units, including, without limitation, expenses associated with
any Internet roadshow, travel and lodging expenses of the Representatives and officers of the
Selling Unitholder Parties and the cost of any aircraft chartered in connection with the road show;
and (h) all other costs and expenses incident to the performance of the obligations of the Trust
and the Selling Unitholder Parties under this Agreement; provided that, except as provided in this
Section 8 and in Section 13, the Underwriters shall pay their own costs and expenses, including the
costs and expenses of their counsel, any transfer taxes on the Offered Units which they may sell
and the expenses of advertising any offering of the Offered Units made by the Underwriters.




          9. 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 Trust and the Selling Unitholder Parties contained herein, to the performance
by the Trust and the Selling Unitholder Parties of their respective 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 6(a); no stop order suspending the effectiveness of the Registration Statement or
preventing or suspending the use of the Prospectus shall have been issued and no proceeding
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 Trust or the Selling
Unitholder Parties on or prior to such Delivery Date that the Registration Statement or the
Prospectus or any amendment or supplement thereto contains an untrue
statement of a fact which, in the opinion of Cravath, Swaine & Moore LLP, counsel for
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 to make the
statements therein not misleading.









 



16



     (c) All corporate and other proceedings and other legal matters incident to the
authorization, form and validity of this Agreement, the Offered Units, the Registration
Statement and the Prospectus, and all other legal matters relating to this Agreement and the
transactions contemplated hereby shall be reasonably satisfactory in all material respects
to counsel for the Underwriters, and the Trust and the Selling Unitholder 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) (1) Thompson & Knight L.L.P. shall have furnished to the Representatives its
written opinion, as counsel to the Trust, 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; (2) Frederick J. Plaeger,
Esq. shall have furnished to the Representatives his written opinion, as General Counsel to
the Selling Unitholder Parties, 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 (3) Andrews Kurth LLP shall have furnished
to the Representatives its written opinion, as counsel to the Trust and the Selling
Unitholder Parties, 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-3.




     (e) The Representatives shall have received from Cravath, Swaine & Moore LLP, counsel
for the Underwriters, such opinion or opinions, dated such Delivery Date, with respect to
the issuance and sale of the Offered Units, the Registration Statement, the Prospectus and
other related matters as the Representatives may reasonably require, and the Trust and
Selling Unitholder Parties shall have furnished to such counsel such documents as they
reasonably request for the purpose of enabling them to pass upon such matters.




     (f) At the time of execution of this Agreement, the Representatives shall have received
(1) from Deloitte & Touche 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, (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 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; and (2)
from PricewaterhouseCoopers 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, (ii) stating, as of the date hereof (or, with respect to
matters involving changes or developments since the respective dates as of which









 



17



specified
financial information is given in the 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.




     (g) With respect to the letter of each of Deloitte & Touche LLP and
PricewaterhouseCoopers LLP referred to in the preceding paragraph and delivered to the
Representatives concurrently with the execution of this Agreement (the “initial letter”),
the Trust and the Selling Unitholder Parties shall have furnished to the Representatives a
letter (the “bring-down letter”) of each 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 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 bring-down letter), the conclusions and findings of such firm
with respect to the financial information and other matters covered by the initial letter
and (iii) confirming in all material respects the conclusions and findings set forth in the
initial letter.




     (h) The Trust shall have furnished to the Representatives a certificate, dated such
Delivery Date, of an authorized officer of the trustee of the Trust stating that:




     (i) The representations, warranties and agreements of the Trust in Section 1
and Section 2.1 are true and correct on and as of such Delivery Date, and the Trust
has complied with all its agreements contained herein and satisfied all the
conditions on its part to be performed or satisfied 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 for that purpose have been instituted or, to the
knowledge of such officer, threatened; and




     (iii) Such officer has carefully examined the Registration Statement and the
Prospectus and, in his or her opinion, (A) the Registration Statement, as of the
Effective Time, and the Prospectus, as of its date and as of such Delivery Date, 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 (in the case of the Prospectus, in the light of the
circumstances under which they were made) not misleading, and (B) since the
Effective Time, no event has occurred that should have been set forth in a
supplement or amendment to the Registration Statement or the Prospectus that
has not been so set forth.




     (i) Burlington shall have furnished to the Representatives a certificate, dated such
Delivery Date, of its Chief Financial Officer or Treasurer stating that:














 








18





     (i) The representations, warranties and agreements of the Selling Unitholder
Parties in Section 1 and Section 2.2 are true and correct on and as of such Delivery
Date, and the Selling Unitholder Parties have complied with all their agreements
contained herein and satisfied all the conditions on its part to be performed or
satisfied 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 for that purpose have been instituted or, to the
knowledge of such officer, threatened; and




     (iii) Such officer has carefully examined the Registration Statement and the
Prospectus and in his or her opinion, (A) the Registration Statement, as of the
Effective Time, and the Prospectus, as of its date and as of such Delivery Date, 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 (in the case of the Prospectus, in the light of the
circumstances under which they were made) not misleading, and (B) since the
Effective Time, no event has occurred that should have been set forth in a
supplement or amendment to the Registration Statement or the Prospectus that has not
been so set forth.




     (j) (i) The Trust shall not have sustained, since the date of the latest audited
financial statements included or incorporated by reference in the Prospectus (exclusive of
any amendment or supplement thereto after the date hereof), 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 of the Trust
or any change, or any development involving a prospective change, in or affecting the
condition (financial or otherwise), distributable income, trust corpus, assets, management,
business or prospects of the Trust, 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 Offered Units being delivered on such Delivery Date on the terms and in the manner
contemplated in the Prospectus.




     (k) 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 or the American Stock Exchange or in the over-the-counter market, or trading in any
securities of the Trust on any exchange or in the over-the-counter market, shall have been
suspended or materially limited or the settlement of such trading generally shall have been
materially disrupted or minimum prices shall have been
established on any such exchange or such market by the Commission, by such exchange or
by any other regulatory body or governmental authority having jurisdiction, (ii) a banking
moratorium shall have been declared by federal or state authorities, (iii) 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
or war by the United States or (iv) there shall have occurred such









 



19



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), as to make it, in
the judgment of the Representatives, impracticable or inadvisable to proceed with the public
offering or delivery of the Offered Units being delivered on such Delivery Date on the terms
and in the manner contemplated in the Prospectus.



          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.




          10. Indemnification and Contribution.





     (a) Each of the Trust and the Selling Unitholder Parties shall indemnify and hold
harmless each Underwriter, its directors, officers and employees 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, but not limited to, any loss, claim, damage, liability or action
relating to purchases and sales of Offered Units), to which that Underwriter, director,
officer, employee 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 (A) in any Preliminary Prospectus, the Registration Statement or the Prospectus or
in any amendment or supplement thereto or (B) in any written materials or information
provided to investors by, or with the written approval of, the Trust and the Selling
Unitholder Parties in connection with the marketing of the offering of the Offered Units
(“Marketing Materials”), (ii) the omission or alleged omission to state in any Preliminary
Prospectus, the Registration Statement or the Prospectus, or in any amendment or supplement
thereto or any Marketing Materials, any material fact required to be stated therein or
necessary to make the statements therein not misleading or (iii) any act or failure to act
or any alleged act or failure to act by any Underwriter in connection with, or relating in
any manner to, the Offered Units or the offering contemplated hereby, and which is included
as part of or referred to in any loss, claim, damage, liability or action arising out of or
based upon matters covered by clause (i) or (ii) above (provided that neither the Trust nor
the Selling Unitholder Parties shall be liable under this clause (iii) to the extent that it
is determined in a final judgment by a court of competent jurisdiction that such loss,
claim, damage, liability or action resulted directly from any such acts or failures to act
undertaken or omitted to be taken by such Underwriter through its gross negligence or
willful misconduct), and shall reimburse each Underwriter and each such director, officer,
employee or controlling person promptly upon demand for any legal or other expenses
reasonably incurred by that Underwriter, director, officer,
employee 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 neither the Trust nor the Selling Unitholder
Parties shall 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,









 



20



the Registration Statement or the Prospectus, or in any such amendment or supplement, in
reliance upon and in conformity with written information concerning such Underwriter
furnished to the Trust or the Selling Unitholder 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 10(f); and provided further, that the
foregoing indemnity agreement with respect to any Preliminary Prospectus shall not inure to
the benefit of any Underwriter who it shall be established failed to deliver the Prospectus
to the person asserting any losses, claims, damages, liabilities and judgments caused by any
untrue statement or alleged untrue statement of a material fact or an omission or alleged
omission to state a material fact required to be stated in such Preliminary Prospectus or
necessary to make the statements in such Preliminary Prospectus not misleading, if (A) the
Trust or the Selling Unitholder Parties shall have furnished copies of the Prospectus to the
several Underwriters in the requisite quantity and sufficiently in advance of the Delivery
Date to permit proper delivery of the Prospectus to such person on or prior to the Delivery
Date; (B) such misstatement or omission or alleged misstatement or omission cured in the
Prospectus and the Prospectus was required by law to be delivered by such person at or prior
to the written confirmation of the sale of Units to such person; and (C) the timely delivery
of the Prospectus to such person would have constituted a defense to the losses, claims,
damages, liabilities and judgments asserted by such person. The foregoing indemnity
agreement is in addition to any liability which the Trust or the Selling Unitholder Parties
may otherwise have to any Underwriter or to any director, officer, employee or controlling
person of that Underwriter.




     (b) The Selling Unitholder Parties shall also indemnify and hold harmless each
Underwriter, its directors, officers and employees, 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, but not limited to, any loss, claim, damage, liability or action relating to
purchases and sales of Offered Units), to which that Underwriter, director, officer,
employee 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, a
breach of any of the representations or warranties of the Selling Unitholder Parties in
Section 2.2 of this Agreement and shall reimburse each Underwriter, its directors, officers
and employees and each such controlling person promptly upon demand for any legal or other
expenses reasonably incurred by that Underwriter, its directors, officers and employees or
controlling persons in connection with investigating or defending or preparing to defend
against any such loss, claim, damage, liability or action as such expenses are incurred.
The foregoing indemnity agreement is in addition to any liability that the Selling
Unitholder Parties may otherwise have to any Underwriter or any officer, employee or
controlling person of that Underwriter.




     (c) Each Underwriter, severally and not jointly, shall indemnify and hold harmless (i)
the Trust, the trustee of the Trust and the directors, officers and employees of the Trust
(the “Trust Indemnified Parties”) and (ii) the Selling Unitholder Parties and their
respective directors, officers and employees (the “Selling Unitholder Indemnified Parties”),
and each person, if any, who controls the Trust or any Selling Unitholder Party









 



21



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 Trust
Indemnified Parties, Selling Unitholder Indemnified Parties or any such director, officer,
employee 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 or the Prospectus or in any amendment or
supplement thereto, or any Marketing Materials, or (ii) the omission or alleged omission to
state in any Preliminary Prospectus, the Registration Statement or the Prospectus, or in any
amendment or supplement thereto, or any Marketing Materials, any material fact required to
be stated therein or necessary to make the statements therein not misleading, 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 Trust or the Selling Unitholder 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 10(f) and shall
reimburse the Trust Indemnified Parties, the Selling Unitholder Indemnified Parties and any
such director, officer or controlling person for any legal or other expenses reasonably
incurred by the Trust Indemnified Parties, the Selling Unitholder Indemnified Parties or any
such director, officer 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. The foregoing indemnity agreement is in addition to any liability
that any Underwriter may otherwise have to the Trust Indemnified Parties, the Selling
Unitholder Indemnified Parties or any such director, officer, employee or controlling
person.




     (d) Promptly after receipt by an indemnified party under this Section 10 of notice of
any claim or the commencement of any action, the indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under Section 10(a), (b) or (c)
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 Section 10(a), (b) or (c) 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 10. 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 10 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 and controlling persons who
may be subject to liability arising out of any claim in respect of which indemnity









 



22



may be sought by the Underwriters against the Trust or any Selling Unitholder Party under this
Section 10 if (i) the Trust, the Selling Unitholder Parties and the Underwriters shall have
so mutually agreed; (ii) the Trust and the Selling Unitholder Parties have failed within a
reasonable time to retain counsel reasonably satisfactory to the Underwriters; (iii) the
Underwriters and their respective directors, officers, employees and controlling persons
shall have reasonably concluded, based on 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
Trust and the Selling Unitholder Parties; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both the Underwriters or their respective
directors, officers, employees or controlling persons, on the one hand, and the Trust and
any Selling Unitholder Party, on the other hand, and, based on the advice of counsel,
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 fees and
expenses of such separate counsel shall be paid by the Trust and the Selling Unitholder
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 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 of 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.




     (e) If the indemnification provided for in this Section 10 shall for any reason be
unavailable to or insufficient to hold harmless an indemnified party under Section 10(a),
10(b) or 10(c) 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
Trust and the Selling Unitholder Parties, on the one hand, and the Underwriters, on the
other, from the offering of the Offered 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 Trust and the Selling Unitholder 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 Trust and
the Selling Unitholder 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 Offered Units purchased under this Agreement (before









 



23



deducting expenses) received by the Selling Unitholder 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 Offered Units purchased under
this Agreement, as set forth in the table on the cover page of the Prospectus, on the other
hand, bear to the total gross proceeds from the offering of the Offered Units under this
Agreement, as set forth in the table on the cover page of the Prospectus. 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 Trust, the Selling Unitholder 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 Trust, the Selling Unitholder Parties
and the Underwriters agree that it would not be just and equitable if contributions pursuant
to this Section 10(e) 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 which 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 10(e) shall be deemed to
include, for purposes of this Section 10(e), 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 10(e), no Underwriter shall be
required to contribute any amount in excess of the amount by which the total price at which
the Offered Units underwritten by it and distributed to the public was offered to the public
exceeds the amount of any damages which such Underwriter has otherwise paid or become liable
to pay by reason of any untrue or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Underwriters’ obligations to contribute as provided in
this Section 10(e) are several in proportion to their respective underwriting obligations
and not joint.




     (f) The Underwriters severally confirm and the Trust and the Selling Unitholder Parties
acknowledge and agree that the concession and reallowance figures and the paragraph relating
to stabilization by the Underwriters appearing under the caption “Underwriting” in the
Prospectus constitute the only information concerning such Underwriters furnished in writing
to the Trust or the Selling Unitholder Parties by or on behalf of the Underwriters
specifically for inclusion in the Registration Statement and the Prospectus.



          11. 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 Offered Units that the defaulting Underwriter agreed but failed to purchase on such Delivery Date in the respective proportions
(subject to such adjustments to eliminate fractional units as the Representatives may determine)
which the number of shares of the Firm Units set forth opposite the name of each remaining
non-defaulting Underwriter in Schedule 1 hereto bears to the total number of shares of the
Firm Units set forth opposite the names of all the remaining non-defaulting Underwriters in
Schedule 1








 



24



hereto; provided, however, that the remaining non-defaulting Underwriters shall
not be obligated to purchase any of the Offered Units on such Delivery Date if the total number of
shares of the Offered Units which the defaulting Underwriter or Underwriters agreed but failed to
purchase on such date exceeds 9.09% of the total number of shares of the Offered 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 shares of the Offered Units which it agreed
to purchase on such Delivery Date pursuant to the terms of Section 3. 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 Offered 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 Selling Unitholder
Parties to sell, the Option Units) shall terminate without liability on the part of any
non-defaulting Underwriter or the Trust or the Selling Unitholder Parties, except that the Selling
Unitholder Parties will continue to be liable for the payment of expenses to the extent set forth
in Sections 8 and 13. 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 11, purchases Offered 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 Trust or the Selling Unitholder Parties for damages caused by its default. If other
Underwriters are obligated or agree to purchase the Offered Units of a defaulting or withdrawing
Underwriter, either the Representatives or the Selling Unitholder Parties 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 Selling Unitholder Parties or counsel for the Underwriters may be necessary in the
Registration Statement, the Prospectus or in any other document or arrangement.




          12. Termination. The obligations of the Underwriters hereunder may be terminated by the
Representatives by notice given to and received by the Trust and the Selling Unitholder Parties
prior to delivery of and payment for the Firm Units if, prior to that time, any of the events
described in Sections 9(j) and 9(k) shall have occurred or if the Underwriters shall decline to
purchase the Offered Units for any reason permitted under this Agreement.




          13. Reimbursement of Underwriters’ Expenses. If the Selling Unitholder Parties shall fail to
tender the Offered Units for delivery to the Underwriters by reason of any failure, refusal or
inability on the part of the Trust or any Selling Unitholder Party to perform any agreement on its
part to be performed, or because any other condition of the Underwriters’ obligations hereunder
required to be fulfilled by the Trust or the Selling Unitholder Parties is not fulfilled, the Selling Unitholder Parties will reimburse the Underwriters for all reasonable
out-of-pocket expenses (including fees and disbursements of counsel) incurred by the Underwriters
in connection with this Agreement and the proposed purchase of the Offered Units, and upon demand
the Selling Unitholder Parties shall pay the full amount thereof to the Representatives. If this
Agreement is terminated pursuant to Section 11 by reason of the default of one or more










 



25




Underwriters, neither the Trust nor the Selling Unitholder Parties shall be obligated to reimburse
any Underwriter on account of those expenses.




          14. Research Independence. In addition, the Trust and the Selling Unitholder Parties
acknowledge 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 and make
statements or investment recommendations and/or publish research reports with respect to the Trust
and/or the offering that differ from the views of its investment bankers. The Trust and the
Selling Unitholder Parties hereby waive and release, to the fullest extent permitted by law, any
claims that the Trust or the Selling Unitholder 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 Trust or the Selling Unitholder Parties by such
Underwriters’ investment banking divisions. The Trust and the Selling Unitholder Parties
acknowledge 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 which may be the subject of the transactions contemplated by this Agreement.




          15. No fiduciary duty. Notwithstanding any preexisting relationship, advisory or otherwise,
between the parties or any oral representations or assurances previously or subsequently made by
the underwriters, the Trust and the Selling Unitholder Parties acknowledge and agree that:





     (a) nothing herein shall create a fiduciary or agency relationship between the Trust or
Selling Unitholder Parties, on the one hand, and the Underwriters, on the other;




     (b) the Underwriters are not acting as advisors, expert or otherwise, to either the
Trust or the Selling Unitholder Parties in connection with this offering, sale of the
Offered Units or any other services the Underwriters may be deemed to be providing
hereunder, including, without limitation, with respect to the public offering price of the
Offered Units;




     (c) the relationship between the Trust and the Selling Unitholder Parties, on the one
hand, and the Underwriters, on the other, is entirely and solely commercial, based on
arms-length negotiations;




     (d) any duties and obligations that the Underwriters may have to the Trust or Selling
Unitholder Parties shall be limited to those duties and obligations specifically stated
herein; and




     (e) notwithstanding anything in this Underwriting Agreement to the contrary, you
acknowledge that the Underwriters’ may have financial interest in the success of the
offering that are not limited to the difference between the price to the public and the








 



26



purchase price paid to you by the Underwriters for the shares and the Underwriters have no
obligation to disclose, or account to you for, any of such additional financial interests.


The Trust and the Selling Unitholder Parties hereby waive and release, to the fullest extent
permitted by law, any claims that the Trust or the Selling Unitholder Parties may have against the
Underwriters with respect to any breach or alleged breach of fiduciary duty arising out of the
transactions contemplated by this Agreement.




          16. 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, telex or facsimile
transmission to (i) Goldman, Sachs & Co., 85 Broad Street, New York, New York 10004,
Attention: Registration Department (Fax: 212-902-3000), and (ii) Lehman Brothers Inc., 745
Seventh Avenue, 19th Floor, New York, New York 10019, Attention: Syndicate Department (Fax:
646-497-4815), with a copy, in the case of any notice pursuant to Section 10(d), to the
Director of Litigation, Office of the General Counsel, Lehman Brothers Inc., 399 Park
Avenue, 10th Floor, New York, New York 10022 (Fax: 212-520-0421);




     (b) if to the Trust, shall be delivered or sent by mail, telex or facsimile
transmission to the address of the Trust set forth in the Registration Statement, Attention:
Ron E. Hooper (Fax: 214-209-2431); and




     (c) if to the Selling Unitholder Parties, shall be delivered or sent by mail, telex or
facsimile transmission to the Selling Unitholder Parties at the address set forth on
Schedule 2 hereto;


provided, however, that any notice to an Underwriter pursuant to Section 10(d) shall be delivered
or sent by mail, telex or facsimile transmission to such Underwriter at its address set forth in
its acceptance telex to the Representatives, which address will be supplied to any other party
hereto by the Representatives upon request. Any such statements, requests, notices or agreements
shall take effect at the time of receipt thereof. The Trust and the Selling Unitholder Parties
shall be entitled to act and rely upon any request, consent, notice or agreement given or made on
behalf of the Underwriters by the Representatives.




          17. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the Underwriters, the Trust, the Selling Unitholder Parties and their
respective successors and assigns. 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 Trust and the Selling Unitholder Parties contained in this Agreement shall
also be deemed to be for the benefit of the directors, officers and employees of the Underwriters
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 10(c) of this Agreement shall be deemed to be for the
benefit of the trustee of the Trust, the officers, directors and employees of the trustee of the
Trust and the officers and directors of the Selling Unitholder Parties who have signed the
Registration








 



27



Statement and any person controlling the Trust and the Selling Unitholder 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 17, any
legal or equitable right, remedy or claim under or in respect of this Agreement or any provision
contained herein.




          18. Survival. The respective indemnities, representations, warranties and agreements of the
Trust, the Selling Unitholder Parties and the Underwriters contained in this Agreement or made by
or on behalf on them, respectively, pursuant to this Agreement, shall survive the delivery of and
payment for the Offered 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.




          19. 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 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.




          20. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.




          21. Counterparts. This Agreement may be executed in one or more counterparts and, if executed
in more than one counterpart, the executed counterparts shall each be deemed to be an original but
all such counterparts shall together constitute one and the same instrument.




          22. Liability of Unitholders. Any Liability of the Trust arising out of this Agreement shall
be satisfiable only out of the Trust estate and shall not, in any event, including the exhaustion
of the Trust estate, be satisfiable out of amounts at any time distributed to any unitholders of
the Trust or out of any other assets owned by any unitholder of the Trust.




          23. 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.
















 








28




     If the foregoing correctly sets forth the agreement among the Trust, the Selling Unitholder
Parties and the Underwriters, please indicate your acceptance in the space provided for that
purpose below.



	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	PERMIAN BASIN ROYALTY TRUST
	 
	 	 	 	 	 	 
	 

	 	By
	 	BANK OF AMERICA, N.A.	 	 
	 

	 	 	 	Trustee	 	 






	 	 	 	 	 
	 

	 	By:
	 	/s/ Ron E. Hooper
	 

	 	 	 	 
	 

	 	 	 	Name: Ron E. Hooper
	 

	 	 	 	Title: Sr. Vice President












 



29

	 	 	 	 	 
	 	BURLINGTON RESOURCES INC.

 	 
	 	By:  	/s/  Daniel D. Hawk
 	 
	 	 	Name:  	Daniel D. Hawk 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 



	 	 	 	 	 
	 	BURLINGTON RESOURCES OIL & GAS 
COMPANY LP

 	 
	 	By 	BROG GP INC.
 	 
	 	 	     Its General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                                        Daniel D. Hawk
 	 
	 	 	Name:  	Daniel D. Hawk 	 
	 	 	Title:  	Vice President & Treasurer 	 










 



30

	 	 	 	 	 




Accepted:



Goldman, Sachs & Co.

Lehman Brothers Inc.



For themselves and as Representatives

of the several Underwriters named

in Schedule 1 hereto



	 	 	 	 	 
	 	 	 
	/s/  Goldman Sachs & Co 	 	 	 
	(Goldman, Sachs & Co.) 	 	 	 
	 	 	 	 
	 



	 	 	 	 	 
	Lehman Brothers Inc.
 	 	 
	By:  	/s/  Brad Hutchinson 	 	 
	 	Authorized Representative 	 	 
	 	 	 	 









 





	 	 	 	 	 




Exhibit A




SCHEDULE 1




	 	 	 	 	 
	 	 	Number of Firm	 
	Underwriters	 	Units	 
	Goldman, Sachs & Co.
	 	 	2,165,625	 
	Lehman Brothers Inc.
	 	 	2,165,625	 
	Citigroup Global Markets Inc.
	 	 	1,185,937	 
	Wachovia Capital Markets, LLC
	 	 	1,185,937	 
	RBC Capital Markets Corporation
	 	 	928,126	 
	Stifel, Nicolaus & Company, Incorporated
	 	 	618,750	 
	 
	 	 	 
	Total
	 	 	8,250,000	 
	 
	 	 	 












 




Exhibit B-1




SCHEDULE 2




	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 	Number of	 
	Name and Address of Selling Unitholder Parties	 	Firm Units	 	 	Units Option	 
	Burlington Resources Inc.
	 	 	 	 	 	 	 	 
	Burlington Resources Oil & Gas LP
	 	 	 	 	 	 	 	 
	717 Texas Avenue, Suite 2100
	 	 	 	 	 	 	 	 
	Houston, TX 77002
	 	 	 	 	 	 	 	 
	 
	 	 	8,250,000	 	 	 	1,237,500	 
	 
	 	 	 	 	 	 
	Total
	 	 	8,250,000	 	 	 	1,237,500	 
	 
	 	 	 	 	 	 





2