JOINDER AGREEMENT AND AMENDMENT NO. 2 TO THE STOCK PURCHASE AGREEMENT
Exhibit 2.3.3
Execution Copy
JOINDER AGREEMENT AND
AMENDMENT NO. 2 TO THE STOCK PURCHASE AGREEMENT
AMENDMENT NO. 2 TO THE STOCK PURCHASE AGREEMENT
This JOINDER AGREEMENT AND AMENDMENT NO. 2 TO THE STOCK PURCHASE AGREEMENT (this “Joinder
Agreement”), is made and entered into as of October 31, 2007, by and among Xxxxx, LLC, an
Oklahoma limited liability company (“Xxxxx”), BGJC, LLC, an Oklahoma limited liability
company (“BGJC”), CSK, LLC, an Oklahoma limited liability company (“CSK”), KBK,
LLC, an Oklahoma limited liability company (“KBK”), KSKN, LLC, an Oklahoma limited
liability company (“KSKN”, and, together with Betts, BGJC, CSK and KBK, the
“LLCs”), West Oklahoma PVF Company, a Delaware corporation (“Buyer”), Red Man Pipe
& Supply Co., an Oklahoma corporation (the “Company), McJ Holding LLC, a Delaware limited
liability company (“McJ Holding”) and Xxxxx Xxxxxxx (the “Representative”), as
Representative of the Shareholders. All capitalized terms used in this Joinder Agreement which are
not otherwise defined herein are used with the same meaning attributed to such capitalized terms in
the Stock Purchase Agreement (as defined below).
WITNESSETH:
WHEREAS Buyer, the Company and the holders of all outstanding shares of stock of the Company
listed on Schedule 1 thereto (each a “Shareholder” and, collectively, the
“Shareholders”), McJ Holding (for purposes of Sections 2.3(c) and 10.4 only) and the
Representative are parties to that certain Stock Purchase Agreement dated, July 6, 2007, as amended
by Amendment No. 1 thereto, dated October 24, 2007 (the “Stock Purchase Agreement”);
WHEREAS BJHK Limited Partnership, an Oklahoma limited partnership (“BJHK LP”), K.F.
Enterprises, L.L.C., an Oklahoma limited liability company (“KFE”), and BJHK Living Trust,
an Oklahoma trust (“BJHK LT” and, together with BJHK LP and KFE, the “Former
Shareholders”), are parties to the Stock Purchase Agreement named as Shareholders therein;
WHEREAS, pursuant to certain restructurings and business combinations consummated prior to the
Closing (collectively, the “Restructurings”), among other things: (i) BJHK LP has merged
with and into KFE, and (ii) effective on the Closing Date, as of immediately prior to the Closing,
KFE is transferring all its shares of Company Stock in equal proportions to BGJC, CSK, KBK, and
KSKN, and BJHK LT is transferring all its shares of Company Stock to Xxxxx;
WHEREAS, as a result of the Restructurings, at the Closing, the Former Shareholders will not
own any shares of Company Stock and each of the LLCs will own the number of shares of Company Stock
set forth opposite the name of such LLC on Schedule 1 hereto (representing, in the aggregate,
96,549 shares of Company Stock); and
WHEREAS (i) this Joinder Agreement is intended to constitute the Contribution Percentage
Notice pursuant to Section 6.17 of the Stock Purchase Agreement, (ii) Section 6.17
contemplates that, prior to the Closing, each of CK and each Other Xxxxxxx Entity named in the
Contribution Percentage Notice shall become a party to the Stock Purchase Agreement as a
Shareholder, and (iii) each of the undersigned desires and intends that, by executing and
delivering this Joinder Agreement, each of the LLCs shall become a party to the Stock Purchase
Agreement as a Shareholder thereunder.
NOW, THEREFORE, in consideration of the foregoing, and of the representations, warranties,
covenants and agreements contained herein, and intending to be legally bound hereby, the parties
hereby covenant and agree as follows:
Section 1. Party to the Agreement. Each of the LLCs hereby agrees to become a party to
the Stock Purchase Agreement as a “Shareholder” thereunder, effective as of the date hereof, and to
be bound by, and subject to, all of the representations, covenants, agreements, terms and
conditions of the Stock Purchase Agreement that are applicable to a Shareholder, and to be entitled
to all the rights and benefits of such a party under the Stock Purchase Agreement, in each case as
if a signatory directly thereto. Without limiting the generality of the foregoing, each of the
LLCs, by executing this Joinder Agreement, is (a) making the representations and warranties set
forth in Article III of the Stock Purchase Agreement as a Shareholder (provided that such
representations and warranties are being made by each such LLC as of the date hereof, and provided
further that in the case of the representation and warranty of each LLC pursuant to Section 3.1(a)
of the Stock Purchase Agreement, such representation and warranty is being made by such LLC as of
immediately prior to the Closing) and (b) agreeing to be bound by, and subject to, all of the
covenants and agreements set forth in the Stock Purchase Agreement applicable to a Shareholder.
Execution and delivery of this Joinder Agreement by each of the LLCs shall constitute execution and
delivery by it of the Stock Purchase Agreement, without further action of any party. Each of the
LLCs hereby acknowledges that the Stock Purchase Agreement provides for the escrow, in accordance
with an escrow agreement as set forth in the Stock Purchase Agreement, of a portion of the proceeds
otherwise payable by Buyer to each Shareholder in exchange for such Shareholder’s shares of Company
Stock. Each of the LLCs hereby (i) appoints Xxxxx Xxxxxxx to serve as each such LLC’s agent in
selling such LLC’s Company Stock to Buyer and (ii) grants Xxxxx Xxxxxxx an irrevocable power of
attorney to sell such LLC’s Company Stock to Buyer pursuant to the terms of the Stock Purchase
Agreement. Pursuant to Section 10.4 of the Stock Purchase Agreement, each of the LLCs further
agrees that by becoming a Shareholder it will be deemed to irrevocably constitute and appoint Xxxxx
Xxxxxxx as its true and lawful agent and attorney-in-fact with full powers of substitution, to act
in the name, place and stead of such LLC with respect to the Stock Purchase Agreement and with
respect to the transfer of such LLC’s Company Stock to Buyer pursuant to the Stock Purchase
Agreement and the transactions contemplated thereby, and to do or refrain from doing all such acts
and things, and to execute all such documents, as the Representative shall deem necessary or
appropriate in connection with the Stock Purchase Agreement, the Ancillary Documents or any of the
transactions contemplated thereby.
Section 2. Schedule 1 and Exhibit B. Schedule 1 and Exhibit B to the Stock Purchase
Agreement are hereby amended and restated in the forms attached as Schedule 1 and
Exhibit B hereto, respectively. Schedule 1 and Exhibit B
to the Stock Purchase Agreement will be further amended to add, as Shareholders and Plan
Shareholders, those persons who become Electing Participants (as defined in Amendment No. 1 to the
Stock Purchase Agreement).
2
Section 3. Sale of Securities. Each of the LLCs hereby directs the Representative to sell
the shares of Company Stock set forth opposite its name under the column “Number of Shares Sold for
Cash (“Transferred Shares”)” on Exhibit B, as hereby amended, to the Stock Purchase
Agreement, at the Closing, in accordance with the terms and conditions of the Stock Purchase
Agreement.
Section 4. Representations and Warranties. In addition to the representations and
warranties in Article III of the Stock Purchase Agreement that each of the LLCs makes to Buyer as a
Shareholder, each such LLC represents and warrants to Buyer and the Company that (a) such LLC has
carefully reviewed copies of the Stock Purchase Agreement and all other documents such LLC deems
necessary or desirable in order for it to execute this Joinder Agreement, (b) such LLC has been
granted the opportunity to ask questions of, and receive answers from, representatives of the
Company concerning the Stock Purchase Agreement and the terms and conditions thereof that such LLC
deems necessary and (c) this Joinder Agreement has been duly executed and delivered by such LLC and
constitutes a valid and binding agreement of such LLC enforceable against it in accordance with its
terms. CSK represents and warrants to Buyer that it is a Person controlled by Xxxxx Xxxxxxx in
which Xxxxx Xxxxxxx and his [wife and] children have at least a 90% economic beneficial interest.
Each LLC other than CSK represents and warrants to Buyer that it is an “Other Xxxxxxx Entity” as
defined in the Stock Purchase Agreement.
Section 5. Contribution Percentage Notice; Limited Waivers. This Joinder Agreement
constitutes a Contribution Percentage Notice pursuant to Section 6.17 of the Stock Purchase
Agreement. Buyer hereby waives any requirement that the Contribution Percentage Notice be
delivered to Buyer a specified number of days prior to closing and any right to object to the
Contribution Percentage Notice on the ground that it was not timely delivered. Buyer hereby waives
any closing condition under the Stock Purchase Agreement to the effect or other requirement that
the representations and warranties of the Former Shareholders under Section 3.1(a) be true or
correct at the Closing. Buyer hereby waives any closing condition under the Stock Purchase
Agreement to the effect or other requirement that the representations and warranties of the LLCs
under Section 3.1(a) be true or correct as of the date of the Stock Purchase Agreement, provided
that such representations and warranties of the LLCs are true and correct as of the Closing after
giving effect to the amendment and restatement of Schedule 1 to the Stock Purchase Agreement as
provided herein.
Section 6. No Required Consents. Each of the Former Shareholders hereby represents and
warrants that the Restructurings, including without limitation the direct and indirect transfers of
Company Stock from the Former Shareholders to the LLCs acquiring such Company Stock, as described
in third “Whereas” clause
above, do not (a) violate any Law or Order to which such Former Shareholder is subject, result in
the creation or imposition of any Encumbrance upon the Company Stock formerly held of record or
beneficially owned by such Former Shareholder, or require such Former Shareholder to give any
notice to, make any filing with, or obtain any authorization, consent or approval of, any Person.
Section 7. Further Assurances. At any time or from time to time after the date hereof,
each LLC agrees to execute and deliver any further instruments or documents and take
3
such
additional actions as the Company, the Representative or Buyer may reasonably request in order to
evidence or effectuate its sale of Company Stock pursuant to the Stock Purchase Agreement and to
otherwise carry out the intent of the parties under this Joinder Agreement.
Section 8. Governing Law. This Joinder Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without effect to the principles of conflicts of
law.
Section 9. Acceptance of Joinder. The Company, Buyer, McJ Holding and the Representative
(on behalf of the Shareholders) hereby accept this Joinder Agreement, and agree that upon execution
hereof, each LLC shall become a party to the Stock Purchase Agreement as a “Shareholder,” entitled
to all the rights and benefits of such a party thereunder (and bound by and subject to the terms
and conditions thereof), as if a signatory directly thereto.
Section 10. Effect of the Stock Purchase Agreement. Except as expressly set forth herein,
the parties make no amendment, alteration or modification of the Stock Purchase Agreement. Except
as expressly set forth herein, the Stock Purchase Agreement shall remain in full force and effect.
Section 11. Applicability of Article X of the Stock Purchase Agreement. The provisions of
Article X of the Stock Purchase Agreement shall apply to this Joinder Agreement as if such
provisions were part of this Joinder Agreement.
[The next page is the signature page]
4
Execution Copy
IN WITNESS WHEREOF, the undersigned have executed this Joinder Agreement as of the date first
above written.
Xxxxx, LLC |
||||
By: | /s/ XXXXX XXXXXXX | |||
Name: | Xxxxx Xxxxxxx | |||
Title: | Member | |||
BGJC, LLC |
||||
By: | /s/ XXXXX XXXXXXX | |||
Name: | Xxxxx Xxxxxxx | |||
Title: | Member | |||
CSK, LLC |
||||
By: | /s/ XXXXX XXXXXXX | |||
Name: | Xxxxx Xxxxxxx | |||
Title: | Member | |||
KBK, LLC |
||||
By: | /s/ XXXXX XXXXXXX | |||
Name: | Xxxxx Xxxxxxx | |||
Title: | Member | |||
KSKN, LLC |
||||
By: | /s/ XXXX XXXXXXX | |||
Name: | Xxxx Xxxxxxx | |||
Title: | Member |
[Signature Page to Joinder Agreement and Amendment No. 2 to Stock Purchase Agreement]
RED MAN PIPE & SUPPLY CO. |
||||
By: | /s/ XXX XXXXX | |||
Name: | Xxx Xxxxx | |||
Title: | CFO | |||
WEST OKLAHOMA PVF COMPANY |
||||
By: | /s/ F.T. XXXXX JR. | |||
Name: | ||||
Title: | ||||
MCJ HOLDING LLC |
||||
By: | /s/ F.T. XXXXX JR. | |||
Name: | ||||
Title: | ||||
XXXXX XXXXXXX, as Representative |
||||
/s/ XXXXX XXXXXXX |
[Signature Page to Joinder Agreement and Amendment No. 2 to Stock Purchase Agreement]