(as Seller)
(as Seller)
(as Buyer)
(as Buyer)
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ARTICLE I DEFINITIONS | 2 | |||
Section 1.1 Definitions | 2 | |||
Section 1.2 Certain Interpretive Matters | 19 | |||
ARTICLE II PURCHASE AND SALE OF ASSETS | 20 | |||
Section 2.1 Purchase and Sale | 20 | |||
Section 2.2 Excluded Assets | 20 | |||
Section 2.3 Assumed Liabilities | 21 | |||
Section 2.4 Excluded Liabilities | 22 | |||
Section 2.5 Purchase Price | 23 | |||
Section 2.6 Estimated Closing Statement; Post-Closing Purchase Price Adjustment | 24 | |||
Section 2.7 Tax Treatment; Allocation of Purchase Price | 25 | |||
Section 2.8 Certain Costs, Fees and Expenses | 26 | |||
Section 2.9 Receipts After Closing | 26 | |||
ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLERS | 27 | |||
Section 3.1 Organization, Good Standing, Authority and Capitalization | 27 | |||
Section 3.2 Absence of Conflicts and Consent Requirements | 29 | |||
Section 3.3 Environmental Matters | 29 | |||
Section 3.4 Ownership of Assets | 30 | |||
Section 3.5 Litigation | 32 | |||
Section 3.6 Permits and Compliance With Law | 33 | |||
Section 3.7 Intellectual Property Rights | 33 | |||
Section 3.8 Computer Hardware and Software | 34 | |||
Section 3.9 Material Contracts | 34 | |||
Section 3.10 Labor and Employment Matters; ERISA | 36 | |||
Section 3.11 Brokers, Finders, etc. | 40 | |||
Section 3.12 Taxes | 40 | |||
Section 3.13 No Preemptive Rights | 41 | |||
Section 3.14 Transactions With Affiliates | 42 | |||
Section 3.15 Financial Statements | 42 | |||
Section 3.16 Absence of Changes | 43 | |||
Section 3.17 No Undisclosed Liabilities | 44 | |||
Section 3.18 Utilities | 44 | |||
Section 3.19 Government Contracts | 45 | |||
Section 3.20 Insurance, Surety Bonds and Letters of Credit | 45 | |||
Section 3.21 Customers and Suppliers | 46 | |||
Section 3.22 Inventory | 46 | |||
Section 3.23 Accounts Receivable | 46 | |||
Section 3.24 Bank Accounts | 47 | |||
Section 3.25 Minute Books | 47 | |||
Section 3.26 Powers of Attorney | 47 | |||
Section 3.27 SWDs | 47 | |||
Section 3.28 Service Warranties | 48 | |||
Section 3.29 Investment Representations | 48 | |||
Section 3.30 Sellers’ Reliance | 49 | |||
Section 3.31 Disclosure | 49 | |||
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ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYERS | 49 | |||
Section 4.1 Organization and Authority | 49 | |||
Section 4.2 Absence of Conflicts and Consent Requirements | 49 | |||
Section 4.3 Litigation Affecting Buyers | 50 | |||
Section 4.4 Equity Interests | 50 | |||
Section 4.5 Fees | 50 | |||
Section 4.6 Available Funds | 50 | |||
Section 4.7 Capitalization | 51 | |||
Section 4.8 Valid Shares | 51 | |||
Section 4.9 Compliance with Applicable Laws | 51 | |||
Section 4.10 Securities and Exchange Commission Filings | 52 | |||
Section 4.11 No Material Adverse Change | 52 | |||
Section 4.12 Buyers’ Reliance | 52 | |||
ARTICLE V COVENANTS OF SELLERS AND BUYERS | 53 | |||
Section 5.1 Investigation of Business; Access to Properties and Records; Notification of Certain Matters | 53 | |||
Section 5.2 Reasonable Efforts | 55 | |||
Section 5.3 Further Assurances | 56 | |||
Section 5.4 Conduct of Business | 56 | |||
Section 5.5 Preservation of Business | 59 | |||
Section 5.6 Public Announcements | 59 | |||
Section 5.7 No Implied Representation | 59 | |||
Section 5.8 Construction of Certain Provisions | 60 | |||
Section 5.9 Assignment of Contracts | 60 | |||
Section 5.10 Post-Closing Cooperation | 61 | |||
Section 5.11 Right to Update | 61 | |||
Section 5.12 Tax Matters | 62 | |||
Section 5.13 Employees | 64 | |||
Section 5.14 Repayment of Indebtedness; Release of Liens | 67 | |||
Section 5.15 Title Insurance and Survey | 67 | |||
Section 5.16 Intercompany Arrangements | 67 | |||
Section 5.17 Listing of the Key Shares | 68 | |||
Section 5.18 Registration of the Key Shares | 68 | |||
Section 5.19 Resales by Holders | 71 | |||
Section 5.20 Exclusivity | 73 | |||
Section 5.21 Solicitation of the Employees, Customers and Suppliers | 74 | |||
Section 5.22 Key Board | 75 | |||
Section 5.23 Insurance Arrangements | 75 | |||
Section 5.24 Sellers’ Commitments | 76 | |||
Section 5.25 Monthly Financial Statements | 76 |
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ARTICLE VI CLOSING | 77 | |||
Section 6.1 Time and Place of Closing | 77 | |||
Section 6.2 Conditions to Buyers’ Obligations | 77 | |||
Section 6.3 Conditions to Sellers’ Obligations | 79 | |||
Section 6.4 Contemporaneous Effectiveness | 81 | |||
ARTICLE VII SURVIVAL; INDEMNIFICATION | 81 | |||
Section 7.1 Survival | 81 | |||
Section 7.2 Indemnification | 82 | |||
Section 7.3 Exclusive Remedy | 87 | |||
Section 7.4 Adjustment to Purchase Price | 88 | |||
Section 7.5 Continuing Indemnification of Directors and Others | 88 | |||
Section 7.6 EXPRESS NEGLIGENCE | 88 | |||
ARTICLE VIII TERMINATION | 89 | |||
Section 8.1 Termination | 89 | |||
Section 8.2 Procedure and Effect of Termination | 90 | |||
Section 8.3 Wrongful Termination | 90 | |||
ARTICLE IX MISCELLANEOUS | 90 | |||
Section 9.1 Counterparts | 90 | |||
Section 9.2 Governing Law | 90 | |||
Section 9.3 No Third Party Beneficiaries | 91 | |||
Section 9.4 Entire Agreement | 91 | |||
Section 9.5 Expenses | 91 | |||
Section 9.6 Notices | 91 | |||
Section 9.7 Successors and Assigns | 92 | |||
Section 9.8 Amendments and Waivers | 93 | |||
Section 9.9 Severability of Provisions | 93 | |||
Section 9.10 Consent to Jurisdiction | 93 | |||
Section 9.11 Waiver of Jury Trial | 93 | |||
Section 9.12 Joint Preparation | 93 | |||
Section 9.13 Time | 93 | |||
Section 9.14 Specific Performance | 94 | |||
EXHIBIT A | - | ADOPTION AGREEMENT | ||
EXHIBIT B | - | FORM OF BILL OF SALE | ||
EXHIBIT C | - | INDEMNIFICATION/CONTRIBUTION | ||
EXHIBIT D | - | FORM OF SELLERS’ COUNSEL OPINION | ||
EXHIBIT E | - | FORM OF BUYERS’ COUNSEL OPINION | ||
EXHIBIT F | - | GENERAL RELEASE |
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Name of Entity | Type of Entity | |
Davis Energy Services, LLC | Delaware limited liability company | |
QCP Energy Services, LLC | Delaware limited liability company | |
Swan Energy Services, LLC | Delaware limited liability company |
Name of Entity | Type of Entity | |
DOS GP, LLC | Texas limited liability company | |
Davis Oilfield Services, LP | Texas limited partnership | |
Davis Vacuum Services, L.P. | Texas limited partnership | |
Four Star Disposal LP | Texas limited partnership | |
Davis Coiled Tubing Services, LLC | Texas limited liability company | |
Shelby Saltwater Systems LLC | Texas limited liability company | |
SOS GP, LLC | Texas limited liability company | |
Swan Oilfield Services, LP | Texas limited partnership | |
Swan Drilling, LP | Texas limited partnership | |
QCP Construction, LLC | Texas limited liability company | |
QCP Precision, LLC | Texas limited liability company |
DEFINITIONS
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PURCHASE AND SALE OF ASSETS
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REPRESENTATIONS AND WARRANTIES OF SELLERS
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REPRESENTATIONS AND WARRANTIES OF BUYERS
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COVENANTS OF SELLERS AND BUYERS
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CLOSING
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SURVIVAL; INDEMNIFICATION
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Period During Which Notice of a Claim | ||
for Indemnification is Given | Relative Obligations | |
Beginning with the Closing Date through the first anniversary of the Closing Date | Sellers shall bear 100% and Buyers shall bear 0% of each item of Indemnifiable Damages | |
Beginning after the first anniversary of the Closing Date through the second anniversary of the Closing Date | Sellers shall bear 75% and Buyers shall bear 25% of each item of Indemnifiable Damages | |
After the second anniversary of the Closing Date | Sellers shall bear 50% and Buyers shall bear 50% of each item of Indemnifiable Damages |
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TERMINATION
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MISCELLANEOUS
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c/o ArcLight Capital Partners, LLC
200 Clarendon Street, 55th Floor
Boston, Massachusetts 02117
Attention: Carter Ward
Facsimile: (617) 867-4698
200 Clarendon Street, 55th Floor
Boston, Massachusetts 02117
Attention: General Counsel
Facsimile: (617) 867-4698
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711 Louisiana Street, Suite 2300
Houston, Texas 77002
Attention: Steven R. Tredennick
Telecopier: (713) 222-3236
1301 McKinney, Suite 1800
Houston, Texas 77010
Attention: General Counsel
Telecopier: (713) 651-4559
1000 Main Street, 36th Floor
Houston, Texas 77002
Attention: William W. Wiggins, Jr.
E. James Cowen
Telecopier: (713) 226-6227
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SELLERS: OFS HOLDINGS, LLC | ||||
By: | ||||
Name: | Daniel R. Revers | |||
Title: | Chairman | |||
OFS ENERGY SERVICES, LLC | ||||
By: | ||||
Name: | Daniel R. Revers | |||
Title: | Chairman | |||
BUYERS: KEY ENERGY SERVICES, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
KEY ENERGY SERVICES, LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
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Exhibit A, Page 1
Very truly yours, | ||||||
Sign: | ||||||
Print Name: | ||||||
Date: | ||||||
By: | ||||
Name: | ||||
Title: | ||||
Exhibit A, Page 2
Exhibit B, Page 1
Exhibit B, Page 2
SELLERS: OFS HOLDINGS, LLC | ||||
By: | /s/ Daniel R. Revers | |||
Name: | Daniel R. Revers | |||
Title: | Chairman | |||
OFS ENERGY SERVICES, LLC | ||||
By: | /s/ Daniel R. Revers | |||
Name: | Daniel R. Revers | |||
Title: | Chairman | |||
BUYERS: KEY ENERGY SERVICES, INC. | ||||
By: | /s/ Newton W. Wilson III | |||
Name: | Newton W. Wilson III | |||
Title: | Executive VP and COO | |||
KEY ENERGY SERVICES, LLC | ||||
By: | /s/ Newton W. Wilson III | |||
Name: | Newton W. Wilson III | |||
Title: | Executive VP and COO | |||
Exhibit B, Page 3
Exhibit C, Page 1
Exhibit C, Page 2
Exhibit C, Page 3
Exhibit C, Page 4
Exhibit D, Page 1
Exhibit D, Page 2
Exhibit E, Page 1
Exhibit E, Page 2
Exhibit F, Page 1
Exhibit F, Page 2
SELLERS: OFS HOLDINGS, LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
OFS ENERGY SERVICES, LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
Exhibit F, Page 3