First Amendment to Stock and Membership Interest Purchase Agreement by and among Key Energy Services, LLC and Moncla Entities (October 25, 2007)
This amendment updates the original Stock and Membership Interest Purchase Agreement dated September 19, 2007, between Key Energy Services, LLC (the purchaser) and various Moncla family members, trusts, and related entities (the sellers). The amendment adds several newly formed companies to the agreement, extends all original terms and obligations to these new companies, and clarifies payment instructions for a non-compete fee. All other terms of the original agreement remain in effect unless specifically changed by this amendment.
Exhibit 10.3
FIRST AMENDMENT
Dated as of October 25, 2007
TO
STOCK AND MEMBERSHIP INTEREST PURCHASE AGREEMENT
Dated as of September 19, 2007
by and among
Key Energy Services, LLC
and
L. Charles Moncla, Jr., Moncla Family Partnership, Ltd., L. Charles Moncla, Jr. Charitable Remainder Trust, Michael Moncla, Matthew Moncla, Marc Moncla, Christopher Moncla, Bipin A. Pandya, Thomas Sandahl, Rhonda Moncla, Cain Moncla, Andrew Moncla, Kenneth Rothstein, Moncla Well Service, Inc., Moncla Marine, L.L.C., Moncla Marine Operations, L.L.C., Moncla Marine Vessel No. 1, L.L.C., Moncla Marine Vessel No. 2, L.L.C., Moncla Marine Vessel No. 3, L.L.C., Moncla Marine Vessel No. 4, L.L.C., Moncla Marine Vessel No. 5, L.L.C., Moncla Marine Vessel No. 6, L.L.C., Moncla Marine Vessel No. 8, L.L.C., Moncla Marine Vessel No. 9, L.L.C., Moncla Marine Vessel No. 10, L.L.C., Moncla Marine Vessel No. 11, L.L.C., Moncla Marine Vessel No. 12, L.L.C., Moncla Marine Vessel No. 14, L.L.C., Moncla Marine Vessel No. 15, L.L.C., Moncla Marine Crew Boats, L.L.C., Brothers Oilfield Service & Supply, L.L.C., 4M Equipment & Leasing, L.L.C., L C M Industries, L.L.C., Moncla Drilling, L.L.C.,
and Petroleum Well Service, Inc.
TABLE OF CONTENTS
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| ARTICLE I AMENDMENTS |
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| 1.1 | Additional Companies |
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| 1.2 | Incorporation |
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| 1.3 | Payment Agent |
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| ARTICLE II |
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| MISCELLANEOUS |
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| 2.1 | Effect of Amendment |
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| 2.2 | Counterparts |
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FIRST AMENDMENT TO
STOCK AND MEMBERSHIP INTEREST PURCHASE AGREEMENT
THIS FIRST AMENDMENT TO STOCK AND MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Amendment”) is made and entered into as of October 25, 2007 by, between and among Key Energy Services, LLC, a Texas limited liability company (hereinafter referred to as “Purchaser”), and L. Charles Moncla, Jr. (“Moncla”), Moncla Family Partnership, Ltd. (“Family Partnership”), L. Charles Moncla, Jr., as Trustee of the L. Charles Moncla, Jr. Charitable Remainder Trust, Michael Moncla, Matthew Moncla, Marc Moncla, Christopher Moncla, Bipin A. Pandya, Thomas Sandahl, Rhonda Moncla, Cain Moncla, Andrew Moncla, and Kenneth Rothstein (together with Moncla and Family Partnership hereinafter collectively referred to as “Sellers”) and Moncla Well Service, Inc. (“MWS”), Moncla Marine, L.L.C. (“Moncla Marine”), Moncla Marine Operations, L.L.C. (“Marine Operations”), Moncla Marine Vessel No. 1, L.L.C. (“Marine No. 1”), Moncla Marine Vessel No. 2, L.L.C. (“Marine No. 2”), Moncla Marine Vessel No. 3, L.L.C. (“Marine No. 3”), Moncla Marine Vessel No. 4, L.L.C. (“Marine No. 4”), Moncla Marine Vessel No. 5, L.L.C. (“Marine No. 5”), Moncla Marine Vessel No. 6, L.L.C. (“Marine No. 6”), Moncla Marine Vessel No. 8, L.L.C. (“Marine No. 8”), Moncla Marine Vessel No. 9, L.L.C. (“Marine No. 9”), Moncla Marine Vessel No. 10, L.L.C. (“Marine No. 10”), Moncla Marine Vessel No. 11, L.L.C. (“Marine No. 11”), Moncla Marine Vessel No. 12, L.L.C. (“Marine No. 12”), Moncla Marine Vessel No. 14, L.L.C. (“Marine No. 14”), Moncla Marine Vessel No. 15, L.L.C. (“Marine No. 15”), Moncla Marine Crew Boats, L.L.C. (“Marine Crew Boats” and, together with Marine Operations, Marine No. 1, Marine No. 2, Marine No. 3, Marine No. 4, Marine No. 5, Marine No. 6, Marine No. 8, Marine No. 9, Marine No. 10, Marine No. 11, Marine No. 12, Marine No. 14, and Marine No. 15, are collectively, the “Marine Subsidiaries”), Brothers Oilfield Service &
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Supply, L.L.C. (“Brothers”), 4M Equipment & Leasing, L.L.C. (“4M”), L C M Industries, L.L.C. (“L C M”), Moncla Drilling, L.L.C. (“Drilling”), and Petroleum Well Service, Inc. (“Well Service”). MWS, Moncla Marine, Marine Subsidiaries, Brothers, 4M, L C M, Drilling, and Well Service are sometimes referred to as the “Companies” and each, individually, a “Company”.
W I T N E S S E T H :
WHEREAS, Sellers and the Purchaser entered into a Stock and Membership interest Purchase Agreement dated as of September 19, 2007 (the “Original Agreement”) and now wish to make certain amendments thereto;
NOW, THEREFORE, the parties hereto hereby agree as follows:
ARTICLE I
AMENDMENTS
1.1 Additional Companies.
The Sellers have created Marine No. 10, Marine No. 11, Marine No. 12, Marine No. 14, and Marine No. 15 (collectively, the “New Companies”). The New Companies are owned by Moncla Marine. Sellers and Purchaser hereby amend the Original Agreement to add the New Companies to the defined terms of “Companies” (and each individually a “Company”) and the defined term “Marine Subsidiaries.”
1.2 Incorporation.All representations, warranties, covenants, agreements, and indemnities made in the Original Agreement with respect to the Companies are hereby made with respect to the New Companies.
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1.3 Payment Agent.
Sellers hereby authorize and direct the Purchaser to deliver the non-compete fee to the Payment Agent. Payment Agent agrees to disburse the non-compete fee in accordance with the Original Agreement.
ARTICLE II
MISCELLANEOUS2.1 Effect of Amendment.
Except to the extent its provisions are specifically amended, modified or superseded by this Amendment, the representations, warranties and affirmative and negative covenants of the Sellers contained in the Original Agreement are incorporated herein by reference for all purposes as if copied herein in full. Except to the extent its provisions are specifically amended, modified or superseded by this Amendment, the Original Agreement, as amended, and all terms and provisions thereof shall remain in full force and effect, and the same in all respects are confirmed and approved by the parties hereto.
2.2 Counterparts.This Amendment may be executed in any number of counterparts and all of such counterparts taken together shaft be deemed to constitute one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers effective as of the day and year first above written but executed on the dates set forth below.
[Remainder of Page Intentionally Left Blank; Signature Pages Follow]
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| WITNESSES: |
| PURCHASER: | |
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| KEY ENERGY SERVICES, LLC | |
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| /s/ Marilyn Maloney |
| By: | /s/ Newton W. Wilson, III |
| Marilyn Maloney |
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| Newton W. Wilson, III, Manager |
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| /s/ Kimberly Frye |
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| Kimberly Frye |
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Signature Pages
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| SELLERS: | |
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| /s/ Marilyn Maloney |
| /s/ Leon Charles Moncla, Jr. | |
| Marilyn Maloney |
| LEON CHARLES MONCLA, JR. | |
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| Zachary Stump |
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| MONCLA FAMILY PARTNERSHIP | |
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| /s/ Marilyn Maloney |
| By: | MONCLA MANAGEMENT TRUST, General Partner |
| Marilyn Maloney |
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| /s/ Zachary Stump |
| By: | /s/ Leon Charles Moncla, Jr. |
| Zachary Stump |
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| Leon Charles Moncla, Jr., Trustee |
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| /s/ Marilyn Maloney |
| /s/ Leon Charles Moncla, Jr. | |
| Marilyn Maloney |
| LEON CHARLES MONCLA, JR., TRUSTEE | |
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| Zachary Stump |
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| /s/ Marilyn Maloney |
| /s/ Michael Charles Moncla | |
| Marilyn Maloney |
| MICHAEL CHARLES MONCLA | |
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| /s/ Marilyn Maloney |
| /s/ Matthew Moncla, Jr. | |
| Marilyn Maloney |
| MATTHEW MONCLA | |
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| Zachary Stump |
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| /s/ Marilyn Maloney |
| /s/ Marc Moncla | |
| Marilyn Maloney |
| MARC MONCLA | |
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| Zachary Stump |
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| /s/ Marilyn Maloney |
| /s/ Christopher Moncla |
| Marilyn Maloney |
| CHRISTOPHER MONCLA |
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| Zachary Stump |
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| /s/ Marilyn Maloney |
| /s/ Bipin A. Pandya |
| Marilyn Maloney |
| BIPIN A. PANDYA |
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| Zachary Stump |
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| /s/ Marilyn Maloney |
| /s/ Thomas Sandahl |
| Marilyn Maloney |
| THOMAS SANDAHL |
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| Zachary Stump |
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| /s/ Marilyn Maloney |
| /s/ Rhonda Moncla |
| Marilyn Maloney |
| RHONDA MONCLA |
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| /s/ Marilyn Maloney |
| /s/ Cain Moncla |
| Marilyn Maloney |
| CAIN MONCLA |
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| /s/ Marilyn Maloney |
| /s/ Andrew Moncla |
| Marilyn Maloney |
| ANDREW MONCLA |
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| /s/ Marilyn Maloney |
| /s/ Kenneth Rothstein |
| Marilyn Maloney |
| KENNETH ROTHSTEIN |
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| WITNESSES: |
| COMPANIES: | |
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| MONCLA WELL SERVICE, INC. | |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., President |
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| MONCLA MARINE, L.L.C. | |
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| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE OPERATIONS, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 1, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 2, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 3, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 4, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 5, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 6, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 8, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 9, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 10, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| MONCLA MARINE VESSEL NO. 11, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| MONCLA MARINE VESSEL NO. 12, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| MONCLA MARINE VESSEL NO. 14, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| Zachary Stump |
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| MONCLA MARINE VESSEL NO. 15, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| MONCLA MARINE CREW BOATS, L.L.C. | |
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| By: | MONCLA MARINE, L.L.C., Sole Member |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| Zachary Stump |
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| BROTHERS OILFIELD SERVICE & SUPPLY, L.L.C. | |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| Zachary Stump |
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| 4M EQUIPMENT & LEASING, L.L.C. | |
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| /s/ Marilyn Maloney |
| By: | Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| Zachary Stump |
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| L C M INDUSTRIES, L.L.C. | |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., Manager |
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| /s/ Zachary Stump |
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| Zachary Stump |
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| MONCLA DRILLING, L.L.C. | |
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| /s/ Marilyn Maloney |
| By: | /s/ Michael Charles Moncla, Jr. |
| Marilyn Maloney |
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| Michael Charles Moncla, Manager |
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| /s/ Zachary Stump |
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| Zachary Stump |
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| PETROLEUM WELL SERVICE, INC. | |
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| /s/ Marilyn Maloney |
| By: | /s/ Leon Charles Moncla, Jr. |
| Marilyn Maloney |
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| Leon Charles Moncla, Jr., President |
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| /s/ Zachary Stump |
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| Zachary Stump |
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