UNIT PURCHASE AND SALE AGREEMENT Joseph Chalhoub
EXHIBIT
10.23
UNIT PURCHASE AND SALE AGREEMENT
Xxxxxx Xxxxxxxx
Xxxxxx Xxxxxxxx
This UNIT PURCHASE AND SALE AGREEMENT (“Agreement”), made this 24th day of August,
1999 (“Effective Date”), by and between Xxxxxx Xxxxxxxx, 000 Xxxxx Xxxxxxxx Xxxxxxxxx, Xxxxxx,
Xxxxxx X0X 0X0 (“Member”), and The Heritage Group, an Indiana general partnership having its
principal place of business at 0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx 00000
(“Heritage”);
WITNESSETH:
WHEREAS, Member is the sole owner of Canadian Numbered Federal Corporation 3571645 Canada,
Inc. (“3571645”), which owns One Thousand Four Hundred Eighty-Seven and One-Half (1,487.50) Common
Units (“Common Units”) and One Thousand Seven Hundred (1,700) Preferred Units (“Preferred Units”)
in Heritage-Crystal Clean, LLC (“Company”), an Indiana limited liability company (the Common Units
and the Preferred Units owned by 3571645 being sometimes referred to collectively as “Units”);
WHEREAS, Member and Heritage desire to enter into certain agreements relative to the purchase
and sale of the Units either upon Member’s death or after the lapse of a period of five (5) years;
NOW, THEREFORE, in consideration of the mutual promises set forth herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by both
parties, the parties hereby agree as follows:
SECTION 1
Purchase and Sale of Units After Death of Member
1.1. Purchase and Sale of Units. Following Member’s death, Heritage will purchase and
3571645 (or Member) will sell to Heritage, at a closing as provided for in Section 4 below, all
of the Common Units then outstanding for a purchase price (“Purchase Price”) equal to the product
of (i) the Unit Price determined in the manner provided in Exhibit A attached as applicable
depending upon the date of Member’s death times (ii) the number of Units owned by Member, but at
an amount no less than the price paid for the Common Units as originally reflected in Schedule I
to the Operating Agreement for the Company, dated the Effective Date plus any amount paid by
Member or 3571645 for or upon the exercise of the Purchase Option under Section 6 of the
Preorganization Agreement, dated August 10, 1999. Any Preferred Units then outstanding will be
purchased and sold at the Preferred Unit Purchase Price reflected on Exhibit A.
1.2. Manner of Payment. The Purchase Price shall be payable in cash at the Closing or,
at the option of Heritage, one half (1/2) in cash with the balance payable in three (3) equal
installments of principal on the first (1st) three (3) anniversary dates of the Closing
with interest on the outstanding principal balance from the Closing Date to the Maturity Date at a
rate equal to the Prime Rate as published by The Wall Street Journal from time to time during that
period and at a rate five percent (5%) more than the Prime Rate after the third (3rd)
anniversary date until paid in full. The obligation of Heritage will be evidenced by an Installment
Promissory Note in the form attached as Exhibit B.
SECTION 2
Right to Put Units
2.1 Put Right. On or after December 31, 2004, 3571645 will have the
right (“Put
Right”) to sell all of the Units to Heritage, and Heritage will be obligated to purchase the
Units from
3571645, at a price (“Put Price”) equal to, the Put Value of the units as reflected on Exhibit
A.
3571645 may exercise the Put Right at any time during the first (1st) ninety (90)
days of each calendar
year (“Put Period”) beginning with the calendar year 2005. The Put Right is exercisable by
delivery
of written notice of exercise (“Put Notice”) delivered to Heritage within the Put Period.
2.2 Manner of Payment. The Put Price shall be payable in cash at the Closing or, at
the option of Heritage, one half (1/2) in cash with the balance payable
in three (3) equal installments
of principal on the first (1st) three (3) anniversary dates of the Closing with
interest on the outstanding
principal balance from the Closing Date to the Maturity Date at a rate equal to the Prime Rate
as
published by The Wall Street Journal from time to time during that period and at a rate five
percent
(5%) more than the Prime Rate after the third (3rd) anniversary date until paid in
full. The obligation
of Heritage will be evidenced by an Installment Promissory Note in the form attached as
Exhibit B.
2.3 Heritage Option. In the event 3571645 exercises the Put Right, Heritage will have
the option, exercisable in its sole discretion, to satisfy its obligation to purchase the Units
subject to the Put Right by agreeing either (i) to cause the Company to register more than twenty
percent (20%) of the Common Units for an “initial public offering” in the United States of America
under then applicable laws and rules (“IPO”) or (ii) to cause the Company (or all of the Units of
the Company) to be sold to an independent third party in a private sale conducted by an investment
banking firm to be selected by the Company (“Sale”). Heritage shall exercise its option under this
Section 2.3 by giving written notice thereof to Member within a forty-five (45) day period after
receipt of the Put Notice in which Heritage shall indicate whether it desires to pursue an IPO or a
Sale. Heritage and Member shall then take action reasonably necessary to cause the Company to
prepare and file a registration statement or other requisite form with governmental authorities
having jurisdiction over the public sale of securities in the United States in connection with an
IPO with the intent of
Page 2 of 11
completing the public offering process within one (1) year or to engage an investment banking firm
to conduct a Sale with the intent of completing the sale process within nine (9) months.
2.4 Heritage Right of First Refusal. Heritage will have a right of first (1st)
refusal
(“Refusal Right”) to acquire, on the same terms and for the same price as the highest bidder
or
purchaser selected by the firm conducting a Sale, the assets of the Company or the Units or
other
interests of Member or 3571645 in the Company. If Heritage exercises its Refusal Right,
Chalhoub
shall have the right, with notice to Heritage within a period of thirty (30) days after the
Company
provides Chalhoub with notice of an offer from a third party selected by the firm conducting
the Sale,
to decline to sell his Units. In the event any selected purchaser offers consideration other
than cash
or promissory or other installment obligations, Heritage will have the right to substitute
cash in an
amount equal to the fair market value of the other consideration as determined by the firm
conducting
the sale in the exercise of its reasonable business judgment which shall be binding upon the
parties.
The Refusal Right will be exercisable for a period of thirty (30) days after the Company
provides
Heritage with notice of an offer from a third party selected by the firm conducting the Sale.
2.5 Completion of Process. In the event Heritage elects to proceed with an IPO under
Section 2.3 above and the IPO is not completed within one (1) year from the date of the Put
Notice,
then a Sale will be conducted in the manner provided in Section 2.3 above. If the Sale process
results
in a bid or offer for the Company or its assets or ownership interests, Heritage shall have
the right to
determine whether or not to accept the bid or offer. That determination shall be made within
thirty
(30) days of receipt of the third party bid or offer by written notice (“Election Notice”) to
Chalhoub.
If Heritage elects not to accept the bid or offer, Chalhoub shall have the right to sell his
interest in the
Company to Heritage, and Heritage shall be obligated to purchase, for cash, that interest, for
a price
equal to the proportionate share of the third party bid or offer reflected by the Chalhoub
ownership
interests in the Company at that time. Chalhoub’s right under this Section 2.5 shall be
exercisable by
written notice (“Sale Notice”) to Heritage within thirty (30) days after receipt of the
Election Notice.
Any non-cash items included in a third party bid or offer will be converted to a cash value in
an
amount equal to the fair market value of the other consideration as determined by the firm
conducting
the Sale in the exercise of its reasonable business judgment which shall be binding upon the
parties.
Closing of a purchase and sale under this Section 2.5 shall occur as soon as practical
following the
Sale Notice. If a third party bid or offer is not received within nine (9) months from the
date an IPO
election is converted to a Sale election under this Section 2.5, then Heritage will be
required to
purchase the interests for the Put Price.
2.6 Standstill Period. In the event Chalhoub exercises the Put Right and, through no
fault or breach by Heritage, the interests are not purchased by Heritage or a third party,
Chalhoub
may not exercise the Put Right until the Put Period next occurring after one (1) year has
lapsed from
the date Chalhoub fails to exercise a right under Section 2.5 above or the parties mutually
agree to
terminate the process initiated by the exercise of the Put Right.
Page 3 of 11
SECTION 3
Representations and Warranties
3.1 Member’s Representations and Warranties. As a material inducement to Heritage
to enter into this Agreement as of the Effective Date, Member represents and warrants to
Heritage
as follows:
(a) Title to Units. Except for restrictions in the Operating Agreement of the
Company, Member or 3571645 has good and marketable title to the Units, free and clear
of
any and all liens, security interests, restrictions, encumbrances, equities, options,
claims,
adverse claims, pledges and other limitations on the ownership or voting of, or ability
to sell,
transfer and convey, the Units.
(b) Member’s Authority and No Conflicts. Member has the capacity, right, power
and authority to enter into, execute and deliver this Agreement, to consummate the
transactions contemplated hereby and to comply with and fulfill the terms and
conditions of this Agreement. This Agreement constitutes a valid and binding obligation of
Member and
3571645, enforceable against Member and 3571645 in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency, moratorium or other similar laws
affecting
the enforcement of creditor’s rights generally. Neither the execution and delivery of
this
Agreement nor the consummation of the transactions contemplated hereby will violate,
conflict with or result in a breach of any of the terms, conditions and provisions of,
or
constitute (with or without the giving of notice or lapse of time, or both) a default
under any
agreement, instrument, mortgage, judgment, order, decree or other restriction to which
Member or 3571645 is a party or by which any of Member’ property is bound.
(c) Advice and Counsel. Member acknowledges that he has obtained the advice
of counsel, certified public accountants and/or other advisers in connection with this
Agreement, and no representations or warranties, oral or otherwise, except as provided
in this
Agreement have been made to Member or to any such attorney, accountant or other adviser
as to the financial condition or prospects of the Company or the value of the Units on
which
Member has relied; rather, Member has relied entirely upon his own independent
investigation.
(d) Consents. To Member’s knowledge, no consent (not obtained), approval,
order or authorization of, or registration, declaration or filing with, any federal,
state or local
governmental or regulatory agency or authority is required to be made or obtained by
Member or 3571645 in order to execute this Agreement.
3.2 Representations and Warranties of Heritage. As a material inducement to Member to
enter into this Agreement, Heritage represents and warrants to Member as follows:
Page 4 of 11
(a) Organization and Power. Heritage is a general partnership duly organized
and validly existing under the laws of the State of Indiana, with all requisite power and
authority to enter into and perform its obligations under this Agreement.
(b) Company’s Authority. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized by all
necessary action. This Agreement constitutes a legal, valid and binding obligation of
Heritage, enforceable against it in accordance with its terms. Neither the execution of
this Agreement nor the consummation of the transactions contemplated hereby will violate,
conflict with or result in a breach of any of the terms, conditions or provisions of or
constitute with or without giving of notice or lapse of time, or both, a default under any
agreement, instrument, mortgage, judgment, order, decree or other restriction to which
Heritage is a party or by which any of its property is bound.
(c) Consents. No consent (not obtained), approval, order or authorization of,
or registration, declaration or filing with, any federal, state or local governmental or
regulatory agency or authority is required to be made or obtained by Heritage in order to
execute this Agreement or to consummate the transaction contemplated hereby.
SECTION 4
Closing
4.1. Closing. The closing of any purchase and sale of Units under this Agreement shall
occur at the office of the Company or other location mutually agreeable to Heritage and 3571645
within thirty (30) days following the determination of the Purchase Price or the Put Price.
4.2. Deliveries by Member. At the Closing, 3571645 shall deliver to Heritage an
assignment of the Units duly endorsed and other documents or instruments sufficient to transfer all
rights of 3 571645 in the Units to Heritage.
4.3. Deliveries by the Company. At the Closing, Heritage shall deliver to 3571645 the
Note representing any portion of the Purchase Price or the Put Price not paid in cash and shall
provide evidence of delivery of cash for the Purchase Price or Put Price as applicable.
SECTION 5
Termination
5.1. Termination by Consent. Member and Heritage may agree to terminate this Agreement by their mutual written consent.
Page 5 of 11
5.2. Public Offering. This Agreement shall automatically terminate on the date when
any Registration Statement on Form X-0, X-0 or S-3 or successor forms
(“Registration Statement”). covering more than twenty percent (20%) of the Common Units of the Company (or the common
equity interests in any business organization into which the Common Units are converted upon a
transfer of the Company’s business assets or reorganization) is declared effective by the United
State Securities and Exchange Commission (“SEC Effective Date”), it being the intent of the
parties to eliminate any redemption requirements relative to the Units if and when the Company
completes an “initial public offering” of a common equity interest. Any redemption pending but
not Closed on the SEC Effective Date may be canceled by the Company in the exercise of its own
discretion.
SECTION 6
Provisions of General Application
6.1. Notices. All notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing and shall be deemed to have been duly given on
the date of service if served personally on the party to whom notice is given, or on the third
(3rd) day after mailing to the party to whom notice is to be given by reputable courier
service and properly addressed to the intended recipient at the address indicated in the Preamble
to this Agreement or to such other address(es) as any party shall have specified by notice in
writirig to the other party.
6.2. Further Assurances. The parties agree that they will from time to tune, upon request of any other party and without further consideration, execute, acknowledge and deliver in
proper form any further instruments and take such other action as such other party may reasonably
require in order to effectively carry out the intents and purposes of this Agreement.
6.3. Governing Law; Consent to Jurisdiction; Severability. This Agreement, and all
transactions contemplated hereby, shall be governed, construed and enforced in all respects in
accordance with the laws of the State of Indiana. The parties hereto agree that all disputes under
or with respect to this Agreement or the transaction contemplated hereby shall be resolved by
litigation in the state or federal courts in Xxxxxx County, Indiana or Xxxx County, Illinois, and
each of the parties irrevocably submits to the jurisdiction of such forums and irrevocably waives
any objection the party may have based upon improper venue, forum non conveniens or similar
doctrines or rules
6.4. Successors and Assignees. Whenever used, the words “Member”, “3571645”,
“Heritage” and “Company” shall be deemed to include the respective successors and assigns of such
parties. All of the terms and provisions of this Agreement shall be binding upon and inure to the
benefit of each party and their respective heirs, personal representatives, successors and assigns;
provided, however, that the benefits and obligations of any party may not be assigned
without the other’s prior written consent; provided however, Heritage may cause the purchase of
Units to be performed by the Company or by an affiliate of Heritage with Heritage continuing to be
bound.
Page 6 of 11
6.5. Expenses. Each of the parties shall pay its own expenses incurred in connection
with the transactions provided for in this Agreement.
6.6. Attorneys’ Fees. Should any action be brought to enforce the terms of this
Agreement, the prevailing party in any such action shall be entitled to recover reasonable
attorneys’ fees incurred in the action in addition to any remedies otherwise available.
6.7.
Modifications. This Agreement may not be changed, amended or modified orally.
This Agreement may be changed, amended or modified only by a written instrument executed by the
parties hereto.
6.8. Non-Waiver. Neither the waiver of any breach nor the failure to enforce any term
or condition of, this Agreement shall operate as a waiver or release of any such term or condition,
nor constitute nor be deemed a waiver or release of any other rights, in law or at equity, or
claims which any party may have against any other party for any matter arising out of, connected
with or based upon this Agreement. No waiver shall be enforceable against any party hereto unless
set forth in a written instrument or agreement signed by such party.
6.9. Captions. The captions of this Agreement are for convenience only and shall not
be deemed to affect the meaning or interpretation of any provision of this Agreement.
6.10. Entire Agreement. This Agreement, together with the Disclosure and Offering
Statement, the Subscription Agreement, the Operating Agreement for the Company, the Employment
Agreement between Member and the Company, and the Non-Competition and Non-Disclosure Agreement
between Member and the Company all dated the Effective Date (collectively, “Other Agreements”)
contains the entire understanding as to the subject matter hereof. There are no representations,
promises, warranties, covenants or undertakings relating hereto other than those expressly set
forth or provided for in the Closing documents and the Other Agreements. Except for the Other
Agreements, this Agreement supersedes all prior agreements and understandings of the parties hereto
with respect to the transactions contemplated by thereby. Sections 1 and 2 of this Agreement take
precedence over any contrary provisions in the Other Agreements.
6.11. Survival. The representations, warranties and covenants of the parties contained
in this Agreement shall survive the Closing of any purchase and sale.
[Remainder of page intentionally left blank]
Page 7 of 11
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date
first written above.
| Member | Heritage | |||||
| /s/ Xxxxxx Xxxxxxxx | The Heritage Group | |||||
| By | /s/ Xxxx X. Xxxxxxxxxx, Xx. | |||||
Personally and for 3571645
Canada, Inc.
|
Trustee | |||||
Page 8 of 11
HERITAGE-CRYSTAL CLEAN, LLC
EXHIBIT A TO UNIT PURCHASE AND SALE AGREEMENT
EXHIBIT A TO UNIT PURCHASE AND SALE AGREEMENT
Common
Unit Purchase or Put Price
| Triggering Event | Date of Occurrence | Redemption Price | ||
Death
|
Before 5th Anniversary | 3 times EBITDA Formula Per Unit | ||
Death
|
From 5th Anniversary Through 10th Anniversary | 4 times EBITDA Formula Per Unit | ||
Death
|
From 10th Anniversary | 5 times EBITDA Formula Per Unit | ||
Put
|
From 5th Anniversary | 5 times EBITDA Formula Per Unit |
“EBITDA
Formula” refers to the average earnings before interest, taxes, depreciation and
amortization reflected on the income statement of the Company for the last 2 full fiscal years
of the Company occurring before the Triggering Event multiplied by the indicated multiple minus
(i) any debt on the Company’s balance sheet on the last day of the second year used to make the
calculation, and (ii) any outstanding Cumulative Preferred Return and unrecovered Capital
Contribution for Preferred Units on that same date.
Preferred
Unit Purchase or Put Priceice
Preferred Units will be purchased and sold at a price equal to the Cumulative Preferred Return
on the date of Closing plus an amount equal to the unrecovered Capital Contribution for the
Preferred Units as reflected on the books and records of the Company.
Page 9 of 11
HERITAGE-CRYSTAL CLEAN, LLC
EXHIBIT B TO UNIT PURCHASE AND SALE AGREEMENT
EXHIBIT B TO UNIT PURCHASE AND SALE AGREEMENT
Form
of Installment Promissory Note
INSTALLMENT PROMISSORY NOTE
$
FOR
VALUE RECEIVED, on or before the third (3rd) anniversary date of
the Closing, as defined in a Unit
Purchase and Sale Agreement between Xxxxxx Xxxxxxxx and The Heritage
Group, dated August , 1999
(the
“Maturity Date”), The Heritage Group, an Indiana general partnership having its principal place
of business at 0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx 00000 (the “Maker”),
hereby promises to pay to the order of [3571645 or
Member] (“Holder”), or its assigns, at , or at such other place as the Holder.
hereof may designate in writing, in lawful money of the United States of America, the principal sum of
Dollars
($ ), together with interest thereon.
Principal
shall be payable in three (3) equal annual installments of $
, together with
(i) interest on the unpaid principal balance existing from time to time at a rate equal to the
prime rate as published daily by The Wall Street Journal (“Prime Rate”), beginning as of the
Closing through the Maturity Date; and (ii) interest after the Maturity Date at a rate equal to
five percent (5%) more than the Prime Rate until paid in full. Payments of principal and
interest shall be made annually on the first (1st) three (3) anniversary dates of
the Closing, and the first installment shall be due on .
Interest shall be paid on actual daily balances of outstanding principal for the exact
number of days principal remains outstanding from and after the Closing, and shall be computed
on the basis of a three hundred sixty five(365) day year.
The entire unpaid principal balance of this Note shall be due and payable on the Maturity
Date. The principal balance of this Note may be prepaid, in whole or in part, at any time
without notice, premium or penalty.
Upon the occurrence of any Default and at any time thereafter prior to the Default being cured,
the entire
balance of this Note, irrespective of the Maturity Date, together with attorneys’ fees and other
costs and expenses
incurred in collecting and enforcing payment or performance hereof, and with interest from the
date of Default on the
unpaid principal balance hereof at the rate specified above, shall, at the election of the Holder,
and without relief from
valuation and appraisement laws, become immediately due and payable.
The occurrence of any of the following events shall be considered an event of “Default”
under this Note:
(a) Maker shall fail to pay any installment of principal and/or interest under this
Note (or any extension, renewal, amendment, restatement or
replacement of this Note) when
due; or
(b) Maker shall (i) institute or consent to any proceedings in insolvency,
bankruptcy, moratorium or other similar laws affecting the enforcement of creditor’s
rights generally, or for the adjustment, liquidation, extension or composition or
arrangement of debts or for any other relief under any
Page 10 of 11
bankruptcy or insolvency law or laws relating to the relief or reorganization of debtors,
(ii) become the subject of an order for relief under the United States Bankruptcy Code or
in any manner is adjudged insolvent, or (iii) make an assignment for the benefit of
creditors or admit in writing an inability to pay debts as they become due.
All notices and other communications in connection with this Note shall be sent in writing to
Holder or to the Maker, as the case may be, at their respective addresses set forth in the
Agreement to which this Note is attached as an Exhibit.
Maker irrevocably waives diligence in collection or prosecution, demand, presentment for
payment, notice of dishonor, protest, notice of protest, dishonor, and notice of nonpayment of
this Note and expressly agrees that this Note and any payment coming due hereunder may be extended
or otherwise modified from time to time without in any way affecting liability hereunder.
If any provision of this Note is prohibited by or invalid under applicable law, that
provision will be ineffective to the extent of the prohibition or invalidity, without invalidating
the rest of that provision or the remaining provisions of this Note. This Note shall bind the
Maker and the Maker’s successors, legal representatives and assigns. No provision of this Note may
be waived, amended, released or otherwise changed, except by a writing signed by the party against
which enforcement is sought.
The trustee executing this Note has full power and authority to enter into this Note and to
assume and perform all of its obligations hereunder. The execution and delivery of this Note and
the performance by Maker of its obligations hereunder have been duly authorized by Maker and no
further action or approval is required in order to constitute this Note as a binding and
enforceable obligation of Maker; and the execution and delivery of this Note and the consummation
of the transaction contemplated hereunder on the part of Maker do not and will not violate any
provisions of Maker’s partnership agreement or other agreement of Maker.
This Note shall be construed according to and governed by the laws of the State of Indiana.
IN
WITNESS WHEREOF, Maker has executed this Note as of the day and year first hereinabove
written.
| THE HERITAGE GROUP | ||||
| By | ||||
| Trustee | ||||
Page 11 of 11
FIRST AMENDMENT TO UNIT PURCHASE AND SALE AGREEMENT
3571645 CANADA INC., AS SUCCESSOR IN INTEREST TO XXXXXX XXXXXXXX
3571645 CANADA INC., AS SUCCESSOR IN INTEREST TO XXXXXX XXXXXXXX
This First Amendment (“Amendment”) made this 27th day of December, 2000, to
the Unit Purchase and Sale Agreement (“Agreement”) dated August 24; 1999, by and between
3571645 Canada Inc., organized under the Canada Business Corporation Act, having its
principal place of business at 000 Xxxxx Xxxxxxxx, Xxxxxxxxx, Xxxxxx, Xxxxxx X0X 0X0
(“Member”), as successor in interest by assignment from Xxxxxx Xxxxxxxx, and The Heritage
Group, an Indiana general partnership, having its principal place of business at 0000 Xxxx
00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx, XXX (“Heritage”).
WITNESSETH:
WHEREAS, Member has purchased additional Preferred Units and Common Units in
Heritage-Crystal Clean, LLC (“Company”).
NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises
contained in this Amendment, the legal sufficiency of which are acknowledged and agreed to,
Heritage and Canada Inc. hereby agree as follows:
1. The first “WHEREAS” of the Agreement is hereby amended in its entirety to read as
follows:
“WHEREAS, Member owns 1,796.66 Common-Units (“Common Units”) and 2,053.34
Preferred Units (“Preferred Units”) in Heritage-Crystal Clean, LLC, an Indiana
limited liability, company (“Company”) (the Common Units and the Preferred
Units owned by Member being sometimes referred to collectively as “Units”).”
2. In all other respects not inconsistent herewith, the Agreement remains in
full force and effect.
IN WITNESS WHEREOF, the parries hereto have executed this Amendment to the Unit Purchase
and Sale Agreement the year and date first above written.
| THE HERITAGE GROUP | 357l645 CANADA INC. | |||||||
By: |
/s/ Xxxx Xxxxxxxxxx | By: | /s/ Xxxxxx Xxxxxxxx | |||||
| Xxxx Xxxxxxxxxx | Xxxxxx Xxxxxxxx | |||||||
EXHIBIT A-1
SECOND AMENDMENT TO UNIT PURCHASE AND SALE AGREEMENT
3571645 CANADA INC.
3571645 CANADA INC.
This Second Amendment (“Amendment”) made this 18th day of January, 2002, to the
Unit Purchase and Sale Agreement dated August 24, 1999, as amended December 27, 2000 (collectively,
“Agreement”), by and between 3571645 Canada Inc, organized under the Canada Business Corporation
Act, having its principal place of business at 000 Xxxxx Xxxxxxxx, Xxxxxxxxx, Xxxxxx, Xxxxxx X0X
0X0 (“Member”), and The Heritage Group, an Indiana general partnership, having its principal place
of business at 0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx XXX (“Heritage”).
WITNESSETH:
WHEREAS, Member has purchased additional Preferred Units and Common Units in Heritage-Crystal
Clean, LLC (“Company”) and further, both parties hereto wish to amend the Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises
contained in this Amendment, the legal sufficiency of which is acknowledged and agreed to, Heritage
and Canada Inc. hereby agree as follows:
1. The first “WHEREAS” of the Agreement is hereby amended in its entirety to read as follows:
“WHEREAS, Member owns 2,450.00 Common Units (“Common Units”) and 2,800.00
Preferred Units (“Preferred Units”) in Heritage-Crystal Clean, LLC, an Indiana
limited liability company (“Company”) (the Common Units and the Preferred Units
owned by Member being sometimes referred to collectively as “Units”).”
2. Section 1.1 “Purchase and Sale of Units” of the Agreement is hereby amended in its
entirety to read as follows:
“Section 1.1 Purchase and Sale of Units. Following Member’s death,
Heritage will purchase and Member will sell to Heritage, at a closing as provided
for in Section 4 below, (a) all of the Common Units owned by Member and then
outstanding for a purchase price equal to the product of (i) the “Common Unit
Purchase Price” determined in the manner provided in Exhibit A attached hereto and
made a part hereof, as applicable, depending upon the date of Member’s death times
(ii) the number of Common Units owned by Member, and (b) all of the Preferred Units
owned by Member and then outstanding for a purchase price equal to the “Preferred
Unit Purchase Price” determined in the manner provided in said Exhibit A (said
purchase prices hereinafter collectively referred to as “Purchase Price”), provided
that if the Purchase Price is less than the aggregate original price paid for all of
these Common and Preferred Units by Member as shown in Exhibit C attached hereto and
made a part hereof (collectively,
“Original Price”), then the portion of the Purchase Price of each class of Units
will be adjusted pro rata so that the Purchase Price is equal to the Original Price;
and provided further that the Preferred Unit Purchase Price shall be reduced by the
amount of any distributions to the Member for said Units pursuant to the Operating
Agreement of the Company.”
3. In all other respects not inconsistent herewith, the Agreement remains in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement the year
and date first above written.
| THE HERITAGE GROUP | 3571645 CANADA INC. | |||||||
By:
|
/s/ Xxxx Xxxxxxxxxx | By: | /s/ Xxxxxx Xxxxxxxx | |||||
| Xxxx Xxxxxxxxxx | Xxxxxx Xxxxxxxx, President | |||||||
HERITAGE – CRYSTAL CLEAN, LLC
EXHIBIT C TO UNIT PURCHASE AND SALE AGREEMENT
EXHIBIT C TO UNIT PURCHASE AND SALE AGREEMENT
Original Price of Common and Preferred Units
| Units | Cost | |||||||
Preferred Units |
||||||||
Units acquired from HCC on August 10,
1999 (1,700 units for $1,170,000) less
units of this lot transferred to
Xxxxxxx Xxx on November 15, 1999
(113.33 units for $77,998) |
1,586.67 | $ | 1,092,002 | |||||
Option premium paid March 2001
($1,280,000), pursuant to First
Amendment to Preorganization Agreement
dated December 27, 2000, less portion
of this premium paid by Xxxxxxx Xxx
($85,333) |
$ | 1,194,667 | ||||||
Units
acquired from THG in December 2000
(500 units for $720,000) less units of
this lot transferred to Xxxxxxx Xxx in
March 2001 (33.33 units for $48,000) |
466.67 | $ | 672,000 | |||||
Units acquired from THG in January 2002 |
746.66 | $ | 1,075,200 | |||||
Preferred Subtotal |
2,800.00 | $ | 4,033,869 | |||||
Common Units |
||||||||
Units acquired from HCC on August 10,
1999 (1,487.50 units for $14,875) less
units of this lot transferred to
Xxxxxxx Xxx on November 15, 1999
(99.17 units for $992) |
1,388.33 | $ | 13,883 | |||||
Units acquired from THG in December 2000
(437.50 units for $4,375) less units
of this lot transferred to Xxxxxxx Xxx
in March 2001 (29.17 units for $291) |
408.33 | $ | 4,084 | |||||
Units acquired from THG in January 2002 |
653.34 | $ | 6,533 | |||||
Common Subtotal |
2,450.00 | $ | 24,500 | |||||
| “Original Price” | $ | 4,058,369 | ||||||
THIRD AMENDMENT TO UNIT PURCHASE AND SALE AGREEMENT
X. XXXXXXXX HOLDINGS, LTD.
X. XXXXXXXX HOLDINGS, LTD.
This Third Amendment (“Amendment”) effective this 22nd day of February, 2003, to
the Unit Purchase and Sale Agreement dated August 24, 1999, as amended December 27, 2000 and
January 18, 2002 (collectively, “Agreement”), by and between X. Xxxxxxxx Holdings, Ltd. f/k/a
3571645 Canada, Inc., organized under the Canada Business Corporation Act, having its principal
place of business at 000 Xxxxx Xxxxxxxx, Xxxxxxxxx, Xxxxxx, Xxxxxx X0X 0X0 (“Member”), and The
Heritage Group, an Indiana general partnership, having its principal place of business at 0000 Xxxx
00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx XXX (“Heritage”).
WITNESSETH:
WHEREAS, Member has sold, assigned and transferred certain Preferred Units and Common Units
in Heritage-Crystal Clean, LLC (“Company”) to Xxxxxx Xxxxxxxxx, another member of the Company and
further, both parties hereto wish to amend the Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises
contained in this Amendment, the legal sufficiency of which is acknowledged and agreed to, Heritage
and Canada, Inc. hereby agree as follows:
1. The first “WHEREAS” of the Agreement is hereby amended in its entirety to read as follows:
“WHEREAS, Member owns 1903.10 Common Units (“Common Units”) and 2,175.00 Preferred
Units (“Preferred Units”) in Heritage-Crystal Clean, LLC, an Indiana limited liability
company (“Company”) (the Common Units and the Preferred Units owned by Member being
sometimes referred to collectively as (“Units”).”
2. Section 1.1 “Purchase and Sale of Units” of the Agreement is hereby clarified by
substituting “Xxxxxx Xxxxxxxx” for “Member” in the first and sixth lines of said section as amended
by the Second Amendment dated January 18, 2002 to the Agreement.
3. Exhibit C to the Agreement is hereby amended in its entirety and replaced with Exhibit C-1
attached hereto and made a part hereof.
4. In all other respects not inconsistent herewith, the Agreement remains in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement the year
and date first above written.
| THE HERITAGE GROUP | X. XXXXXXXX HOLDINGS, LTD. f/k/a 3571645 CANADA, INC. |
|||||||
By:
|
/s/ Xxxx Xxxxxxxxxx | By: | /s/ Xxxxxx Xxxxxxxx | |||||
| Xxxx Xxxxxxxxxx | Xxxxxx Xxxxxxxx, President | |||||||
HERITAGE-CRYSTAL CLEAN, LLC
AMENDED EXHIBIT C-1 TO UNIT PURCHASE AND SALE AGREEMENT
AMENDED EXHIBIT C-1 TO UNIT PURCHASE AND SALE AGREEMENT
Original Price of Common and Preferred Units
| Units | Cost | |||||||
Preferred Units |
||||||||
Units acquired from HCC on August 10, 1999 (1,700
units for $1,170,000) less units of this lot transferred
to Xxxxxxx Xxx on November 15, 1999 (113.33 units
for $77,998) |
1,586.67 | $ | 1,092,202 | |||||
Option premium paid March 2001 ($1280,000),
pursuant to First Amendment to Preorganization
Agreement dated December 27, 2000, less portion of
this premium paid by Xxxxxxx Xxx ($85,333) |
$ | 1,194,667 | ||||||
Units acquired from THG in December 2000 (500 units
for $720,000) less units of this lot transferred to
Xxxxxxx Xxx in December 2000 (33.33 units for $48,000) |
466.67 | $ | 672,000 | |||||
Units acquired from THG in January 2002 |
746.66 | $ | 1,075,200 | |||||
Less payments for units transferred to Xxxxxx Xxxxxxxxx
on February 22, 2003 |
(625.00 | ) | ($900,417 | ) | ||||
Preferred Subtotal |
2,175.00 | $ | 3,133,452 | |||||
Common Units |
||||||||
Units acquired from HCC on August 10, 1999 (1,487.50
units for $14,875) less units of this lot transferred to
Xxxxxxx Xxx on November 115, 1999 (99.17 units for
$992) |
1,388.33 | $ | 13,883 | |||||
Units acquired from THG in December 2000 (437.50
units for $4,375) less units of this lot transferred to
Xxxxxxx Xxx in December 2000 (29.17 units for $291) |
408.33 | $ | 4,084 | |||||
Units acquired from THG in January 2002 |
653.34 | $ | 6,533 | |||||
Less units transferred to Xxxxxx Xxxxxxxxx on
February 22, 2003 |
(546.9 | ) | ($5,469 | ) | ||||
Common Subtotal |
1,903.10 | $ | 19,031 | |||||
| “Original Price” | $ | 3,152,483 | ||||||
FOURTH AMENDMENT TO UNIT PURCHASE AND SALE AGREEMENT
X. XXXXXXXX HOLDINGS, LTD.
X. XXXXXXXX HOLDINGS, LTD.
This Fourth Amendment (“Amendment”) made this 19th day of March, 2003, to the Unit
Purchase and Sale Agreement dated August 24, 1999, as amended December 27, 2000, January 18, 2002
and February 22, 2003 (collectively, “Agreement”), by and between X. Xxxxxxxx Holdings, Ltd.,
organized under the Canada Business Corporation Act, having its principal place of business at 000
Xxxxx Xxxxxxxx, Xxxxxxxxx, Xxxxxx, Xxxxxx X0X 0X0 (“Member”), and The Heritage Group, an Indiana
general partnership, having its principal place of business at 0000 Xxxx 00xx Xxxxxx,
Xxxxxxxxxxxx, Xxxxxxx XXX (“Heritage”).
WITNESSETH:
WHEREAS, Both parties hereto wish to further amend the Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises
contained in this Amendment, the legal sufficiency of which is acknowledged and agreed to, Heritage
and Canada, Inc. hereby agree as follows:
1. Exhibit C-1 to the Agreement is hereby amended in its entirety and replaced with Exhibit C-2
attached hereto and made a part hereof.
2. In all other respects not inconsistent herewith, the Agreement remains in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement the year
and date first above written.
| THE HERITAGE GROUP | X. XXXXXXXX HOLDINGS, LTD. | |||||||
By:
|
/s/ Xxxx Xxxxxxxxxx | By: | /s/ Xxxxxx Xxxxxxxx | |||||
| Xxxx Xxxxxxxxxx | Xxxxxx Xxxxxxxx, President | |||||||
HERITAGE-CRYSTAL CLEAN, LLC
AMENDED EXHIBIT C-2 TO UNIT PURCHASE AND SALE AGREEMENT
AMENDED EXHIBIT C-2 TO UNIT PURCHASE AND SALE AGREEMENT
Original Price of Common and Preferred Units
| Units | Cost | |||||||
Preferred Units |
||||||||
Units acquired from HCC on August 10, 1999 (1,700
Units for $1,170,000) less units of this lot transferred
To Xxxxxxx Xxx on November 15, 1999 (113.33 units
For $77,998) |
1,586.67 | $ | 1,092,202 | |||||
Option premium paid March 2001 ($1280,000),
pursuant to First Amendment to Preorganization
Agreement dated December 27, 2000, less portion of
this premium paid by Xxxxxxx Xxx ($85,333) and
portion paid by Xxxxxx Xxxxxxxxx ($469,852) |
$ | 1,194,667 | ||||||
Units acquired from THG in December 2000 (500 units
For $720,000) less units of this lot transferred to
Xxxxxxx Xxx in December 2000 (33.33 units for $48,000) |
466.67 | $ | 672,000 | |||||
Units acquired from THG in January 2002 |
746.66 | $ | 1,075,200 | |||||
Less payment for units transferred to Xxxxxx Xxxxxxxxx
On February 22, 2003 |
(625.00 | ) | ($ | 430,148 | ) | |||
Additional Capital Call on March 22, 2003 |
$ | 1,030,804 | ||||||
Preferred Subtotal |
2,175.00 | $ | 4,164,456 | |||||
Common Units |
||||||||
Units acquired from HCC on August 10, 1999 (1,487.50
units for $14,875) less units of this lot transferred to
Xxxxxxx Xxx on November 115, 1999 (99.17 units for
$992) |
1,388.33 | $ | 13,883 | |||||
Units acquired from THG in December 2000 (437.50
units for $4,375) less units of this lot transferred to
Xxxxxxx Xxx in December 2000 (29.17 units for $291) |
408.33 | $ | 4,084 | |||||
Units acquired from THG in January 2002 |
653.34 | $ | 6,533 | |||||
Less units transferred to Xxxxxx Xxxxxxxxx on
February 22, 2003 |
(546.9 | ) | ($ | 5,469 | ) | |||
Common Subtotal |
1,903.10 | $ | 19,031 | |||||
| “Original Price” | $ | 4,183,487 | ||||||
FIFTH AMENDMENT TO UNIT PURCHASE AND SALE AGREEMENT
X. XXXXXXXX HOLDINGS, LTD.
X. XXXXXXXX HOLDINGS, LTD.
This Fifth Amendment (“Amendment”) made this 24th day of February, 2004, to the
Unit Purchase and Sale Agreement dated August 24, 1999, as amended December 27, 2000, January 18,
2002, February 22, 2003, and March 19, 2003 (collectively, “Agreement”), by and between
X. Xxxxxxxx Holdings, Ltd., organized under the Canada Business Corporation Act, having its
principal place of business at 000 Xxxxx Xxxxxxxx, Xxxxxxxxx, Xxxxxx, Xxxxxx X0X 0X0 (“Member”),
and The Heritage Group, an Indiana general partnership, having its principal place of business at
0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx XXX (“Heritage”).
WITNESSETH:
WHEREAS, pursuant to Section 6.7 of the Agreement, Member and Heritage have agreed that the
Agreement should be further amended.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises
contained in this Amendment, the legal sufficiency of which is acknowledged and agreed to, Heritage
and Member hereby agree as follows:
| 1. | Section 4.1 is hereby amended in its entirety to read as follows: | ||
| “4.2 Public Offering. The provisions of Sections 1 and 2 hereof and the provisions of Sections 9.01, clause (f) of 9.02, 9.03, 9..06, 9.07, 9.08 (except to the extent that the provisions of Section 9 of the Operating Agreement of the Company as amended (“Operating Agreement”) are, by the terms hereof, still applicable), 9.09, 9.10 (except that any transferee or assignee shall expressly assume and agree to be bound by the terms and conditions of the Operating Agreement as provided in the third sentence of Section 9.10 and Member shall not be released of any prior liability as provided by the fourth sentence of Section 9.10 unless otherwise agreed by all other members of the Company (“Other Members”), 9.11 and 10.07 of the Operating Agreement shall automatically cease to be applicable to the Units and any sale of the Units (including without limitation any sale by any transferee or assignee (or further transferee or assignee) of the Units), and the requirements of clauses (a) through (e) of Section 9.02 of the Operating Agreement with respect to the furnishing of information or evidence satisfactory to the Board of Directors of the Company shall be satisfied so long as Member and any transferee or assignee shall have provided reasonably satisfactory information or evidence, on the date when any Registration Statement on Form X-0, X-0 or S-3 or successor forms (“Registration Statement”) covering more than twenty percent (20%) of the Common Units of the Company (or the common equity interests in any business organization into which the Common Units are converted upon a transfer of the Company’s business assets or reorganization is declared effective by the United States Securities and Exchange Commission (“SEC Effective Date”). Any such transferee or assignee (and any further transferee or assignee) of the Units shall be an “Additional Member” and a “Substitute Member” as defined in and for all purposes of the Operating |
| Agreement, without the necessity of any approval by the Company, the Board of Directors of the Company or the Other Members and notwithstanding any other provisions of the Operating Agreement, including without limitation Sections 9.09, 9.10 (except as otherwise provided above) and 9.11 of the Operating Agreement.” |
| 2. | Section 5.3 is hereby amended to add the following: | ||
| “Any party may make service on any other party by sending or delivering a copy of the process to the party to be served at the address and in the manner provided for the giving of notices in Section 6.1. Each party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity.” | |||
| 3. | Section 5.4 is hereby amended to add the following at the end of the last sentence thereof: | ||
| “. . . and provided further, that any transferee or assignee (or further transferee or assignee) of the Units shall be entitled to the benefits of Section 2.1 and 4.2 hereof.” | |||
| 4. | Section 5.10 is hereby amended in its entirety to read as follows” | ||
| “5.10 Entire Agreement. This Agreement, together with the Disclosure and Offering Statement, the Subscription Agreement, the Operating Agreement, the Employment Agreement between the Member and the Company, the Non-Competition and Non-disclosure Agreement between the Member and the Company, all dated the Effective Date and the Members Agreement dated February 24, 2004 (collectively, “Other Agreements”), contains the entire understanding as to the subject matter hereof. There are no representations, promises, warranties, covenants or undertakings relating hereto other than those expressly set forth or provided for in this Agreement, the Closing documents and the Other Agreements. Except for the Other Agreements, this Agreement supersedes all prior agreements and undertakings of the parties hereto with respect to the transactions contemplated thereby. Sections 1 and 2 of this Agreement takes precedence over any contrary provisions in the Other Agreements. The Operating Agreement shall be deemed to be amended and modified by this Agreement and, in the event of any conflict between the provisions of this Agreement and the Operating Agreement, the provisions of this Agreement shall control.” | |||
| 5. | New Section 5.13 is hereby added to read as follows: | ||
| “5.13 Specific Performance. Each of the parties acknowledges and agrees that the other party would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Accordingly, each of the parties agrees that the other party shall be entitled to an injunction or injunctions to prevent breaches of the |
| provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any actions instituted in any court of the United States or any state thereof having jurisdiction over the parties and the matter (subject to the provisions set forth in Section 6.3 hereof), in addition to any other remedy to which they may be entitled, at law or in equity.” |
| 6. | In all other respects not inconsistent herewith, the Agreement remains in full force and effect. |
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement the year
and date first above written.
| THE HERITAGE GROUP | X. XXXXXXXX HOLDINGS, LTD. | |||||||
By:
|
/s/ Xxxx Xxxxxxxxxx | By: | /s/ Xxxxxx Xxxxxxxx | |||||
| Xxxx Xxxxxxxxxx | Xxxxxx Xxxxxxxx, President | |||||||
SIXTH AMENDMENT TO UNIT PURCHASE AND SALE AGREEMENT
X. XXXXXXXX HOLDINGS, LTD.
X. XXXXXXXX HOLDINGS, LTD.
This Sixth Amendment (“Amendment”) made this 16th day of February, 2006, to the
Unit Purchase and Sale Agreement dated August 24, 1999, as amended December 27, 2000, January 18,
2002, February 22, 2003, March 19, 2003 and February 24, 2004 (collectively, “Agreement”), by and
between X. Xxxxxxxx Holdings, Ltd., organized under the Canada Business Corporation Act, having its
principal place of business at 000 Xxxxx Xxxxxxxx, Xxxxxxxxx, Xxxxxx, Xxxxxx X0X 0X0 (“Member”),
and The Heritage Group, an Indiana general partnership, having its principal place of business at
0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx XXX (“Heritage”).
WITNESSETH:
WHEREAS, Pursuant to Section 6.7 of the Agreement, Member and Heritage have agreed that the
Agreement should be further amended.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises
contained in this Amendment, the legal sufficiency of which is acknowledged and agreed to, Heritage
and Member hereby agree as follows:
1. Section 1.1 of the Agreement is hereby deleted in its entirety and replaced by the following:
1.1 Purchase and Sale of Units.
(a) Trigger and Notification. Upon Xxxxxx Xxxxxxxx’x death, Member
shall have a period of thirty (30) days to exercise an option to sell to Heritage as
many of Member’s then outstanding Common and Preferred Units as Member, in its sole
discretion, deems desirable to sell by written notice to Heritage of its intent to
exercise its option to sell some or all of the Units and the number of Units of each
class Member desires to sell. Upon each anniversary of Xxxxxx Xxxxxxxx’x death,
Member shall have an additional thirty (30) day period to exercise an option to sell
to Heritage as many of Member’s then outstanding Common and Preferred Units as Member
deems desirable to sell by written notice to Heritage as provided above. Failure of
Member to so timely exercise any specific option shall be deemed a forfeiture of said
option.
(b) Purchase Price. Upon the timely exercise by Member of its right to
sell the Units as provided in subsection (a) above, Heritage will purchase from
Member at a closing as provided in Section 4 below, (i) so much of the Common Units
then owned by Member as Member desires to sell to Heritage for a purchase price equal
to the product of the “Common Unit Purchase Price” determined in the manner provided
in Exhibit A attached hereto and made apart hereof, as applicable, times the number
of Common Units sold by Member, and (ii) so much of the Preferred Units then owned by
Member as Member desires to sell to Heritage for a purchase price equal to the
“Preferred Unit Purchase Price” determined in the manner provided in the said Exhibit
A as applicable (said
purchase prices hereinafter collectively referred to as the “Purchase Price”);
provided that if that (1) if the Interest Holders do not exercise their
initial option under Section 1.1(b) hereof and defer the sale of some or all of the
Units, the “EBITDA Formula” in Exhibit A shall be amended to refer to “the two full
fiscal years of the Company occurring before the date of election to sell said Units”
(as opposed to the last two years occurring before a “Triggering Event”), (2) Xxxxxx
Xxxxxxxx’x death occurs on or before December 31, 2010, and the Purchase Price is
less than the aggregate original price paid for all of the Common and Preferred Units
sold by Member as shown in Exhibit C-2 attached hereto and made a part hereof
(collectively, “Original Price”), then the portion of the Purchase Price of each
class of Units will be adjusted pro rata so that the Purchase Price is equal to the
Original Price, and (3) in the event of said adjustment of the Purchase Price in
accordance with Subsection 1.1(b)(2), the Preferred Unit Purchase Price shall be
appropriately reduced by taking into account the amount of any distributions to the
Member for said Units pursuant to the Restated Operating Agreement of the Company,
dated October 26, 2004, as amended (collectively, “Operating Agreement”).
(c) Status of Interest Holder of Units. Upon Xxxxxx Xxxxxxxx’x death
and until Member sells all of Member’s then outstanding Common and Preferred Units to
Heritage in accordance with this Section 1.1, the Member agrees to be deemed an
Assignee, as defined in and governed by the Operating Agreement with regard to said
unsold Units.
2. In all other respects not inconsistent herewith, the Agreement remains in full force and
effect, including without limitation, Section 5.2 of the original Agreement, providing for
termination of the Agreement and any redemption rights relative to Units if and when the Company
completes an “initial public offering” of a common equity interest.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement the year
and date first above written.
| THE HERITAGE GROUP | X. XXXXXXXX HOLDINGS, LTD. | |||||||
By:
|
/s/ Xxxx Xxxxxxxxxx | By: | /s/ Xxxxxx Xxxxxxxx | |||||
| Xxxx Xxxxxxxxxx | Xxxxxx Xxxxxxxx, President | |||||||
