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Execution Version
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AGREEMENT AND PLAN OF MERGER
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by and among
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C&J ENERGY SERVICES, INC.,
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CAYMUS MERGER SUB, INC.,
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O-TEX HOLDINGS, INC.,
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O-TEX SELLERS REPRESENTATIVE LLC,
in its capacity as Stockholders’ Representative,
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and
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THE STOCKHOLDERS SET FORTH ON THE SIGNATURE PAGES HERETO
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Dated as of October 25, 2017
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EXHIBIT
exhibitsticker.com
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TABLE OF CONTENTS
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ARTICLE I DEFINITIONS AND INTERPRETATIONS..............................................................2
1.1 Definitions..................................................................................................................... 2
1.2 Interpretations ............................................................................................................... 2
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ARTICLE II THE MERGER; CLOSING; R&W POLICY ............................................................3
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2.1 The Merger.................................................................................................................... 3
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2.2 Closing .......................................................................................................................... 3
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2.3 Effect of the Merger ...................................................................................................... 3
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2.4 Organizational Documents of the Surviving Corporation ............................................ 4
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2.5 Directors and Officers of the Surviving Corporation ................................................... 4
2.6 Post-Closing Merger ..................................................................................................... 4
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2.7 R&W Policy .................................................................................................................. 4
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ARTICLE III EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE
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COMPANY AND MERGER SUB ...........................................................................................5
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3.1 Conversion of Shares .................................................................................................... 5
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3.2 Cancellation of Company Options ................................................................................ 6
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3.3 No Dissenters Rights..................................................................................................... 6
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3.4 Closing of Transfer Books ............................................................................................ 6
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ARTICLE IV THE MERGER CONSIDERATION........................................................................6
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4.1 Payments ....................................................................................................................... 6
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4.2 Other Deliveries and Actions at Closing ...................................................................... 9
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4.3 Cash Merger Consideration Adjustment ..................................................................... 10
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ARTICLE V REPRESENTATIONS AND WARRANTIES REGARDING THE
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COMPANY..............................................................................................................................13
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5.1 Organization; Qualification ........................................................................................ 13
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5.2 Authority; Enforceability ............................................................................................ 13
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5.3 Non-Contravention ..................................................................................................... 14
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5.4 Consents and Approvals ............................................................................................. 14
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5.5 Capitalization .............................................................................................................. 15
5.6 Subsidiaries ................................................................................................................. 16
5.7 Compliance with Law ................................................................................................. 16
5.8 Real Property .............................................................................................................. 16
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5.9 Tangible Personal Property ......................................................................................... 18
5.10 Financial Statements; Accountants ............................................................................. 18
5.11 Absence of Certain Changes ....................................................................................... 20
5.12 Absence of Owed Fees................................................................................................ 20
5.13 Environmental Matters................................................................................................ 20
5.14 Material Contracts ....................................................................................................... 22
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5.15 Legal Proceedings; Orders .......................................................................................... 24
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5.16 Permits ........................................................................................................................ 24
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5.17 Taxes ........................................................................................................................... 25
5.18 Employee Benefits ...................................................................................................... 26
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5.19 Labor Matters .............................................................................................................. 29
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5.20 Certain Transactions and Interests .............................................................................. 30
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5.21 Insurance Coverage ..................................................................................................... 30
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5.22 Intellectual Property .................................................................................................... 31
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Customers and Suppliers............................................................................................. 33
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5.24 Inventories................................................................................................................... 33
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5.25 Absence of Certain Claims ......................................................................................... 33
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5.26 Accounts and Notes Receivable and Payable ............................................................. 33
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5.27 Banks........................................................................................................................... 34
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5.28 Brokers’ Fee ................................................................................................................ 34
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ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE PARENT AND
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MERGER SUB ........................................................................................................................34
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6.1 Organization; Qualification ........................................................................................ 34
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6.2 Authority; Enforceability ............................................................................................ 35
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6.3 Non-Contravention ..................................................................................................... 35
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6.4 Governmental Approvals ............................................................................................ 36
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6.5 Capitalization .............................................................................................................. 36
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6.6 Parent SEC Reports..................................................................................................... 36
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6.7 Financial Statements ................................................................................................... 38
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6.8 Compliance with Law; Permits ................................................................................... 38
6.9 Legal Proceedings ....................................................................................................... 39
6.10 Business Conduct of Merger Sub ............................................................................... 39
6.11 Sufficient Funds .......................................................................................................... 39
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6.12 Brokers’ Fee ................................................................................................................ 39
ARTICLE VII REPRESENTATIONS AND WARRANTIES OF THE
STOCKHOLDERS ..................................................................................................................39
7.1 Authority; Enforceability ............................................................................................ 39
7.2 Consents and Approvals ............................................................................................. 40
7.3 Ownership and Transfer of Company Shares ............................................................. 40
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7.4 Investment Representation .......................................................................................... 40
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ARTICLE VIII COVENANTS OF THE PARTIES .....................................................................40
8.1 Conduct of the Company’s Business .......................................................................... 40
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8.2 Conduct of the Parent’s Business ............................................................................... 44
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8.3 Notice of Certain Events ............................................................................................. 44
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8.4 Access to Information ................................................................................................. 45
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8.5 Governmental Approvals ............................................................................................ 45
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8.6 Expenses ..................................................................................................................... 47
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Further Assurances...................................................................................................... 47
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8.8 Public Statements ........................................................................................................ 47
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8.9 Confidentiality; Non-Solicitation; Non-Disparagement ............................................. 48
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8.10 Employee Matters ....................................................................................................... 51
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8.11 Non-Solicitation .......................................................................................................... 52
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8.12 Charter Provisions Regarding Indemnification .......................................................... 53
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8.13 D&O Tail Policy ......................................................................................................... 54
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8.14 Tax Matters ................................................................................................................. 54
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8.15 Interim Financial Statements ...................................................................................... 57
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8.16 Registration Statement ................................................................................................ 58
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8.17 Listing ......................................................................................................................... 61
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8.18 Stockholder Waiver of Notice .................................................................................... 61
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ARTICLE IX CONDITIONS TO CLOSING ...............................................................................61
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9.1 Conditions to Obligations of Each Party .................................................................... 61
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9.2 Conditions to Obligations of the Parent and Merger Sub ........................................... 61
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9.3 Conditions to Obligations of the Company ................................................................ 62
ARTICLE X TERMINATION RIGHTS.......................................................................................63
10.1 Termination Rights ..................................................................................................... 63
10.2 Effect of Termination .................................................................................................. 64
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ARTICLE XI INDEMNIFICATION ............................................................................................65
11.1 Indemnification by the Stockholders .......................................................................... 65
11.2 Indemnification by the Parent ..................................................................................... 65
11.3 Limitations and Other Indemnity Claim Matters ........................................................ 66
11.4 Indemnification Procedures ........................................................................................ 70
11.5 Materiality ................................................................................................................... 72
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11.6 No Reliance; Waiver of Certain Damages .................................................................. 72
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ARTICLE XII CONSENT TO JURISDICTION ..........................................................................73
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12.1 Sole and Exclusive Method for Resolution of Disputes ............................................. 73
12.2 Negotiation Between Executives ................................................................................ 74
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12.3 Consent to Jurisdiction................................................................................................ 74
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12.4 Waiver of Jury Trial .................................................................................................... 74
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12.5 Specific Performance .................................................................................................. 75
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ARTICLE XIII GENERAL PROVISIONS...................................................................................75
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Amendment and Modification .................................................................................... 75
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13.2 Waiver of Compliance; Consents ............................................................................... 75
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13.3 Notices ........................................................................................................................ 75
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13.4 Assignment ................................................................................................................. 76
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13.5 Third Party Beneficiaries ............................................................................................ 77
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13.6 Governing Law ........................................................................................................... 77
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13.7 Entire Agreement ........................................................................................................ 77
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13.8 Severability ................................................................................................................. 77
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13.9 Representation by Counsel ......................................................................................... 78
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13.10 Disclosure Schedules .................................................................................................. 78
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13.11 PDF; Counterparts ...................................................................................................... 78
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ARTICLE XIV THE STOCKHOLDERS’ REPRESENTATIVE ................................................79
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14.1 Authorization of the Stockholders’ Representative .................................................... 79
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14.2 Compensation; Exculpation; Indemnity ..................................................................... 81
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AGREEMENT AND PLAN OF MERGER
AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of October 25,
2017 (the “Execution Date”), by and among C&J Energy Services, Inc., a Delaware corporation
(the “Parent”), Caymus Merger Sub Inc., a Delaware corporation and a direct wholly-owned
subsidiary of the Parent (“Merger Sub”), O-Tex Holdings, Inc., a Texas corporation (the
“Company”), O-Tex Sellers Representative LLC, a Delaware limited liability company, in its
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capacity as representative of the Stockholders (the “Stockholders’ Representative”), and the
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Stockholders of the Company set forth on the signature pages of this Agreement.
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Each of the parties to this Agreement is sometimes referred to individually in this
Agreement as a “Party” and all of the parties to this Agreement are sometimes collectively
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referred to in this Agreement as the “Parties”.
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RECITALS
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WHEREAS, the Board of Directors of the Company (the “Company Board”), by written
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consent, (a) determined that this Agreement and the transactions contemplated hereby and in the
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other Transaction Documents (the “Transactions”), including the merger of Merger Sub with
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and into the Company (the “Merger”), are fair to, and in the best interests of, the Stockholders,
(b) approved and declared advisable this Agreement and the Transactions, including the Merger,
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(c) directed that this Agreement be submitted to the Stockholders for adoption and
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(d) recommended that the Stockholders approve and adopt this Agreement and the Transactions,
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including the Merger;
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WHEREAS, the Board of Directors of the Parent (the “Parent Board”), at a meeting
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duly called and held by unanimous vote, (a) determined that this Agreement and the Transactions
are fair to, and in the best interests of, the Parent and the Parent’s stockholders, and (b) approved
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and declared advisable this Agreement and the Transactions;
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WHEREAS, the Board of Directors of Merger Sub (the “Merger Sub Board”) has (i)
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determined that this Agreement and the Transactions, including the Merger, are fair to, and in the
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best interests of, Merger Sub’s sole stockholder and (ii) approved and declared advisable this
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Agreement and the Transactions, including the Merger;
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WHEREAS, immediately after the effectiveness of the Merger, the Surviving
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Corporation shall merge with and into a direct wholly owned limited liability company
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subsidiary of the Parent organized under the laws of the State of Delaware (“LLC Sub” and such
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merger, the “LLC Sub Merger”), with LLC Sub continuing as the surviving entity in the LLC
Sub Merger as a wholly owned direct subsidiary of the Parent; and
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WHEREAS, for U.S. federal income Tax purposes, it is intended that the Merger and the
LLC Sub Merger (together, the “Integrated Mergers”), taken together, qualify as a
“reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as
amended (the “Code”), and that this Agreement and the LLC Sub Merger Agreement, taken
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together, constitute and be adopted as a “plan of reorganization” within the meaning of Treasury
Regulations §§ 1.368-2(g) and 1.368-3(a).
NOW, THEREFORE, in consideration of the foregoing and the representations,
warranties, covenants and agreements contained in this Agreement, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parent, Merger
Sub and the Company agree as follows:
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ARTICLE I
DEFINITIONS AND INTERPRETATIONS
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1.1 Definitions. Capitalized terms used in this Agreement but not defined in the body
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of this Agreement shall have the meanings ascribed to them in Exhibit A. Capitalized terms
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defined in the body of this Agreement are listed in Exhibit A with reference to the location of the
definitions of such terms in the body of this Agreement.
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1.2 Interpretations. In this Agreement, unless a clear contrary intention appears:
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(a) the singular includes the plural and vice versa; (b) reference to a Person includes such
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Person’s successors and assigns but, in the case of a Party, only if such successors and assigns
in any other capacity; (c) reference to
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are permitted by this Agreement, and reference to a Person in a particular capacity excludes such
Person any gender includes the other gender;
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(d) references to any Exhibit, Schedule, Section, Article, Annex, subsection and other
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subdivision refer to the corresponding Exhibits, Schedules, Sections, Articles, Annexes,
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subsections and other subdivisions of this Agreement unless expressly provided otherwise;
(e) references in any Section or Article or definition to any clause means such clause of such
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Section, Article or definition; (f) “hereunder,” “hereof,” “hereto” and words of similar import are
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references to this Agreement as a whole and not to any particular provision of this Agreement;
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(g) the word “or” is not exclusive, and the word “including” (in its various forms) means
“including without limitation”; (h) each accounting term not otherwise defined in this Agreement
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has the meaning commonly applied to it in accordance with GAAP; (i) references to “days” are
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to calendar days; (j) when calculating the period of time before which, within which or following
which any act is to be done or step taken pursuant to this Agreement, the date that is the
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reference date in calculating such period shall be excluded, and if the last day of such period is a
non-Business Day, the period in question shall end on the next succeeding Business Day; and
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(k) all references to money refer to the lawful currency of the United States. The Table of
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Contents and the Article and Section titles and headings in this Agreement are inserted for
convenience of reference only and are not intended to be a part of, or to affect the meaning or
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interpretation of, this Agreement. The Parties have participated jointly in the negotiation and
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drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation
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arises, this Agreement shall be construed as jointly drafted by the Parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
provision of this Agreement.
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ARTICLE II
THE MERGER; CLOSING; R&W POLICY
2.1 The Merger. Upon the terms and subject to the conditions of this Agreement, at
the Effective Time, Merger Sub will be merged with and into the Company in accordance with
the provisions of the Texas Business Organizations Code (the “TBOC”) and the Delaware
General Corporation Law (“DGCL”). As a result of the Merger, the separate existence of
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Merger Sub shall cease and the Company shall continue its existence under the laws of the State
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of Texas as the surviving corporation (in such capacity, the Company is referred to herein as the
“Surviving Corporation”). Immediately prior to the Effective Time, the Parent shall own all of
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the stock and other equity, if any, in Merger Sub and shall be the sole stockholder of Merger
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Sub, and Merger Sub shall be treated as a direct corporate subsidiary of the Parent for U.S.
federal income Tax purposes.
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2.2 Closing.
(a) The closing of the Merger (the “Closing”), shall take place at 10:00 a.m.,
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Central time, on a date that is three Business Days following the satisfaction or (to the extent
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permitted by applicable Law) waiver in accordance with this Agreement of all of the conditions
until the Closing Date, which shall be required to
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set forth in Article IX (other than any such conditions which by their nature cannot be satisfied
be so satisfied or (to the extent permitted by
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applicable Law) waived in accordance with this Agreement on the Closing Date) at the offices of
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Vinson & Elkins L.L.P. in Houston, Texas, or such other place as the Parent and the Company
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may agree in writing. For purposes of this Agreement “Closing Date” shall mean the date on
which the Closing occurs.
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(b) As soon as practicable on the Closing Date but after the Closing, (i) a
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certificate of merger prepared and executed in accordance with the relevant provisions of the
TBOC (the “Texas Certificate of Merger”) shall be filed with the Office of the Secretary of
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State of the State of Texas and (ii) a certificate of merger prepared and executed in accordance
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with the relevant provisions of the DGCL (the “Delaware Certificate of Merger”) shall be filed
with the Office of the Secretary of State of the State of Delaware. The Merger shall become
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effective upon the acceptance of the filing of the Texas Certificate of Merger with the Office of
the Secretary of State of the State of Texas and the acceptance of the filing of the Delaware
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Certificate of Merger with the Office of the Secretary of State of the State of Delaware, or at
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such later time as shall be agreed upon in writing by the Parent and the Company and specified
in each of the Texas Certificate of Merger and the Delaware Certificate of Merger (the
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“Effective Time”).
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2.3 Effect of the Merger. At the Effective Time, the Merger shall have the effects
set forth in this Agreement and the applicable provisions of the TBOC and the DGCL. Without
limiting the generality of the foregoing, and subject thereto, at the Effective Time, all of the
property, rights, privileges, powers and franchises of each of the Company and Merger Sub shall
vest in the Surviving Corporation, and all debts, liabilities, obligations, restrictions, disabilities
and duties of each of the Company and Merger Sub shall become the debts, liabilities,
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obligations, restrictions, disabilities and duties of the Surviving Corporation. Immediately after
the Effective Time, the Parent shall own all of the stock and other equity, if any, in the Surviving
Corporation and shall be the sole stockholder of the Surviving Corporation, and the Surviving
Corporation shall be treated as a direct corporate subsidiary of the Parent for U.S. federal income
Tax purposes.
2.4 Organizational Documents of the Surviving Corporation. At the Effective
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Time, the certificate of incorporation and the bylaws of the Surviving Corporation shall be
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amended and restated to be in the form of the certificate of incorporation and bylaws of Merger
Sub as
Preview
Execution Version k ler tC ric AGREEMENT AND PLAN OF MERGER ist sD by and among es C&J ENERGY SERVICES, INC., rg CAYMUS MERGER SUB, INC., Bu n ily O-TEX HOLDINGS, INC., ar M O-TEX SELLERS REPRESENTATIVE LLC, in its capacity as Stockholders’ Representative, of e and ffic O THE STOCKHOLDERS SET FORTH ON THE SIGNATURE PAGES HERETO y op Dated as of October 25, 2017 C ial fic of Un EXHIBIT exhibitsticker.com 1 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS AND INTERPRETATIONS..............................................................2 1.1 Definitions..................................................................................................................... 2 1.2 Interpretations ............................................................................................................... 2 k ARTICLE II THE MERGER; CLOSING; R&W POLICY ............................................................3 ler 2.1 The Merger.................................................................................................................... 3 tC 2.2 Closing .......................................................................................................................... 3 ric 2.3 Effect of the Merger ...................................................................................................... 3 ist 2.4 Organizational Documents of the Surviving Corporation ............................................ 4 sD 2.5 Directors and Officers of the Surviving Corporation ................................................... 4 2.6 Post-Closing Merger ..................................................................................................... 4 es 2.7 R&W Policy .................................................................................................................. 4 rg ARTICLE III EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE Bu COMPANY AND MERGER SUB ...........................................................................................5 n 3.1 Conversion of Shares .................................................................................................... 5 ily 3.2 Cancellation of Company Options ................................................................................ 6 ar 3.3 No Dissenters Rights..................................................................................................... 6 M 3.4 Closing of Transfer Books ............................................................................................ 6 of ARTICLE IV THE MERGER CONSIDERATION........................................................................6 e 4.1 Payments ....................................................................................................................... 6 ffic 4.2 Other Deliveries and Actions at Closing ...................................................................... 9 O 4.3 Cash Merger Consideration Adjustment ..................................................................... 10 y ARTICLE V REPRESENTATIONS AND WARRANTIES REGARDING THE op COMPANY..............................................................................................................................13 C 5.1 Organization; Qualification ........................................................................................ 13 ial 5.2 Authority; Enforceability ............................................................................................ 13 fic 5.3 Non-Contravention ..................................................................................................... 14 of 5.4 Consents and Approvals ............................................................................................. 14 Un 5.5 Capitalization .............................................................................................................. 15 5.6 Subsidiaries ................................................................................................................. 16 5.7 Compliance with Law ................................................................................................. 16 5.8 Real Property .............................................................................................................. 16 i 5.9 Tangible Personal Property ......................................................................................... 18 5.10 Financial Statements; Accountants ............................................................................. 18 5.11 Absence of Certain Changes ....................................................................................... 20 5.12 Absence of Owed Fees................................................................................................ 20 5.13 Environmental Matters................................................................................................ 20 5.14 Material Contracts ....................................................................................................... 22 k ler 5.15 Legal Proceedings; Orders .......................................................................................... 24 tC 5.16 Permits ........................................................................................................................ 24 ric 5.17 Taxes ........................................................................................................................... 25 5.18 Employee Benefits ...................................................................................................... 26 ist 5.19 Labor Matters .............................................................................................................. 29 sD 5.20 Certain Transactions and Interests .............................................................................. 30 es 5.21 Insurance Coverage ..................................................................................................... 30 rg 5.22 Intellectual Property .................................................................................................... 31 5.23 Bu Customers and Suppliers............................................................................................. 33 n 5.24 Inventories................................................................................................................... 33 ily 5.25 Absence of Certain Claims ......................................................................................... 33 ar 5.26 Accounts and Notes Receivable and Payable ............................................................. 33 M 5.27 Banks........................................................................................................................... 34 of 5.28 Brokers’ Fee ................................................................................................................ 34 e ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE PARENT AND ffic MERGER SUB ........................................................................................................................34 O 6.1 Organization; Qualification ........................................................................................ 34 y 6.2 Authority; Enforceability ............................................................................................ 35 op 6.3 Non-Contravention ..................................................................................................... 35 C 6.4 Governmental Approvals ............................................................................................ 36 ial 6.5 Capitalization .............................................................................................................. 36 fic 6.6 Parent SEC Reports..................................................................................................... 36 of 6.7 Financial Statements ................................................................................................... 38 Un 6.8 Compliance with Law; Permits ................................................................................... 38 6.9 Legal Proceedings ....................................................................................................... 39 6.10 Business Conduct of Merger Sub ............................................................................... 39 6.11 Sufficient Funds .......................................................................................................... 39 ii 6.12 Brokers’ Fee ................................................................................................................ 39 ARTICLE VII REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS ..................................................................................................................39 7.1 Authority; Enforceability ............................................................................................ 39 7.2 Consents and Approvals ............................................................................................. 40 7.3 Ownership and Transfer of Company Shares ............................................................. 40 k ler 7.4 Investment Representation .......................................................................................... 40 tC ARTICLE VIII COVENANTS OF THE PARTIES .....................................................................40 8.1 Conduct of the Company’s Business .......................................................................... 40 ric 8.2 Conduct of the Parent’s Business ............................................................................... 44 ist 8.3 Notice of Certain Events ............................................................................................. 44 sD 8.4 Access to Information ................................................................................................. 45 es 8.5 Governmental Approvals ............................................................................................ 45 rg 8.6 Expenses ..................................................................................................................... 47 8.7 Bu Further Assurances...................................................................................................... 47 n 8.8 Public Statements ........................................................................................................ 47 ily 8.9 Confidentiality; Non-Solicitation; Non-Disparagement ............................................. 48 ar 8.10 Employee Matters ....................................................................................................... 51 M 8.11 Non-Solicitation .......................................................................................................... 52 of 8.12 Charter Provisions Regarding Indemnification .......................................................... 53 e 8.13 D&O Tail Policy ......................................................................................................... 54 ffic 8.14 Tax Matters ................................................................................................................. 54 O 8.15 Interim Financial Statements ...................................................................................... 57 y 8.16 Registration Statement ................................................................................................ 58 op 8.17 Listing ......................................................................................................................... 61 C 8.18 Stockholder Waiver of Notice .................................................................................... 61 ial ARTICLE IX CONDITIONS TO CLOSING ...............................................................................61 fic 9.1 Conditions to Obligations of Each Party .................................................................... 61 of 9.2 Conditions to Obligations of the Parent and Merger Sub ........................................... 61 Un 9.3 Conditions to Obligations of the Company ................................................................ 62 ARTICLE X TERMINATION RIGHTS.......................................................................................63 10.1 Termination Rights ..................................................................................................... 63 10.2 Effect of Termination .................................................................................................. 64 iii ARTICLE XI INDEMNIFICATION ............................................................................................65 11.1 Indemnification by the Stockholders .......................................................................... 65 11.2 Indemnification by the Parent ..................................................................................... 65 11.3 Limitations and Other Indemnity Claim Matters ........................................................ 66 11.4 Indemnification Procedures ........................................................................................ 70 11.5 Materiality ................................................................................................................... 72 k ler 11.6 No Reliance; Waiver of Certain Damages .................................................................. 72 tC ARTICLE XII CONSENT TO JURISDICTION ..........................................................................73 ric 12.1 Sole and Exclusive Method for Resolution of Disputes ............................................. 73 12.2 Negotiation Between Executives ................................................................................ 74 ist 12.3 Consent to Jurisdiction................................................................................................ 74 sD 12.4 Waiver of Jury Trial .................................................................................................... 74 es 12.5 Specific Performance .................................................................................................. 75 rg ARTICLE XIII GENERAL PROVISIONS...................................................................................75 13.1 Bu Amendment and Modification .................................................................................... 75 n 13.2 Waiver of Compliance; Consents ............................................................................... 75 ily 13.3 Notices ........................................................................................................................ 75 ar 13.4 Assignment ................................................................................................................. 76 M 13.5 Third Party Beneficiaries ............................................................................................ 77 of 13.6 Governing Law ........................................................................................................... 77 e 13.7 Entire Agreement ........................................................................................................ 77 ffic 13.8 Severability ................................................................................................................. 77 O 13.9 Representation by Counsel ......................................................................................... 78 y 13.10 Disclosure Schedules .................................................................................................. 78 op 13.11 PDF; Counterparts ...................................................................................................... 78 C ARTICLE XIV THE STOCKHOLDERS’ REPRESENTATIVE ................................................79 ial 14.1 Authorization of the Stockholders’ Representative .................................................... 79 fic 14.2 Compensation; Exculpation; Indemnity ..................................................................... 81 of Un iv AGREEMENT AND PLAN OF MERGER AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of October 25, 2017 (the “Execution Date”), by and among C&J Energy Services, Inc., a Delaware corporation (the “Parent”), Caymus Merger Sub Inc., a Delaware corporation and a direct wholly-owned subsidiary of the Parent (“Merger Sub”), O-Tex Holdings, Inc., a Texas corporation (the “Company”), O-Tex Sellers Representative LLC, a Delaware limited liability company, in its k capacity as representative of the Stockholders (the “Stockholders’ Representative”), and the ler Stockholders of the Company set forth on the signature pages of this Agreement. tC Each of the parties to this Agreement is sometimes referred to individually in this Agreement as a “Party” and all of the parties to this Agreement are sometimes collectively ric referred to in this Agreement as the “Parties”. ist RECITALS sD WHEREAS, the Board of Directors of the Company (the “Company Board”), by written es consent, (a) determined that this Agreement and the transactions contemplated hereby and in the rg other Transaction Documents (the “Transactions”), including the merger of Merger Sub with Bu and into the Company (the “Merger”), are fair to, and in the best interests of, the Stockholders, (b) approved and declared advisable this Agreement and the Transactions, including the Merger, n (c) directed that this Agreement be submitted to the Stockholders for adoption and ily (d) recommended that the Stockholders approve and adopt this Agreement and the Transactions, ar including the Merger; M WHEREAS, the Board of Directors of the Parent (the “Parent Board”), at a meeting of duly called and held by unanimous vote, (a) determined that this Agreement and the Transactions are fair to, and in the best interests of, the Parent and the Parent’s stockholders, and (b) approved e and declared advisable this Agreement and the Transactions; ffic WHEREAS, the Board of Directors of Merger Sub (the “Merger Sub Board”) has (i) O determined that this Agreement and the Transactions, including the Merger, are fair to, and in the y best interests of, Merger Sub’s sole stockholder and (ii) approved and declared advisable this op Agreement and the Transactions, including the Merger; C WHEREAS, immediately after the effectiveness of the Merger, the Surviving ial Corporation shall merge with and into a direct wholly owned limited liability company fic subsidiary of the Parent organized under the laws of the State of Delaware (“LLC Sub” and such of merger, the “LLC Sub Merger”), with LLC Sub continuing as the surviving entity in the LLC Sub Merger as a wholly owned direct subsidiary of the Parent; and Un WHEREAS, for U.S. federal income Tax purposes, it is intended that the Merger and the LLC Sub Merger (together, the “Integrated Mergers”), taken together, qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and that this Agreement and the LLC Sub Merger Agreement, taken 1 together, constitute and be adopted as a “plan of reorganization” within the meaning of Treasury Regulations §§ 1.368-2(g) and 1.368-3(a). NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements contained in this Agreement, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parent, Merger Sub and the Company agree as follows: k ler ARTICLE I DEFINITIONS AND INTERPRETATIONS tC 1.1 Definitions. Capitalized terms used in this Agreement but not defined in the body ric of this Agreement shall have the meanings ascribed to them in Exhibit A. Capitalized terms ist defined in the body of this Agreement are listed in Exhibit A with reference to the location of the definitions of such terms in the body of this Agreement. sD 1.2 Interpretations. In this Agreement, unless a clear contrary intention appears: es (a) the singular includes the plural and vice versa; (b) reference to a Person includes such rg Person’s successors and assigns but, in the case of a Party, only if such successors and assigns in any other capacity; (c) reference to Bu are permitted by this Agreement, and reference to a Person in a particular capacity excludes such Person any gender includes the other gender; n (d) references to any Exhibit, Schedule, Section, Article, Annex, subsection and other ily subdivision refer to the corresponding Exhibits, Schedules, Sections, Articles, Annexes, ar subsections and other subdivisions of this Agreement unless expressly provided otherwise; (e) references in any Section or Article or definition to any clause means such clause of such M Section, Article or definition; (f) “hereunder,” “hereof,” “hereto” and words of similar import are of references to this Agreement as a whole and not to any particular provision of this Agreement; e (g) the word “or” is not exclusive, and the word “including” (in its various forms) means “including without limitation”; (h) each accounting term not otherwise defined in this Agreement ffic has the meaning commonly applied to it in accordance with GAAP; (i) references to “days” are O to calendar days; (j) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the y op reference date in calculating such period shall be excluded, and if the last day of such period is a non-Business Day, the period in question shall end on the next succeeding Business Day; and C (k) all references to money refer to the lawful currency of the United States. The Table of ial Contents and the Article and Section titles and headings in this Agreement are inserted for convenience of reference only and are not intended to be a part of, or to affect the meaning or fic interpretation of, this Agreement. The Parties have participated jointly in the negotiation and of drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation Un arises, this Agreement shall be construed as jointly drafted by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. 2 ARTICLE II THE MERGER; CLOSING; R&W POLICY 2.1 The Merger. Upon the terms and subject to the conditions of this Agreement, at the Effective Time, Merger Sub will be merged with and into the Company in accordance with the provisions of the Texas Business Organizations Code (the “TBOC”) and the Delaware General Corporation Law (“DGCL”). As a result of the Merger, the separate existence of k Merger Sub shall cease and the Company shall continue its existence under the laws of the State ler of Texas as the surviving corporation (in such capacity, the Company is referred to herein as the “Surviving Corporation”). Immediately prior to the Effective Time, the Parent shall own all of tC the stock and other equity, if any, in Merger Sub and shall be the sole stockholder of Merger ric Sub, and Merger Sub shall be treated as a direct corporate subsidiary of the Parent for U.S. federal income Tax purposes. ist sD 2.2 Closing. (a) The closing of the Merger (the “Closing”), shall take place at 10:00 a.m., es Central time, on a date that is three Business Days following the satisfaction or (to the extent rg permitted by applicable Law) waiver in accordance with this Agreement of all of the conditions until the Closing Date, which shall be required to Bu set forth in Article IX (other than any such conditions which by their nature cannot be satisfied be so satisfied or (to the extent permitted by n applicable Law) waived in accordance with this Agreement on the Closing Date) at the offices of ily Vinson & Elkins L.L.P. in Houston, Texas, or such other place as the Parent and the Company ar may agree in writing. For purposes of this Agreement “Closing Date” shall mean the date on which the Closing occurs. M of (b) As soon as practicable on the Closing Date but after the Closing, (i) a e certificate of merger prepared and executed in accordance with the relevant provisions of the TBOC (the “Texas Certificate of Merger”) shall be filed with the Office of the Secretary of ffic State of the State of Texas and (ii) a certificate of merger prepared and executed in accordance O with the relevant provisions of the DGCL (the “Delaware Certificate of Merger”) shall be filed with the Office of the Secretary of State of the State of Delaware. The Merger shall become y op effective upon the acceptance of the filing of the Texas Certificate of Merger with the Office of the Secretary of State of the State of Texas and the acceptance of the filing of the Delaware C Certificate of Merger with the Office of the Secretary of State of the State of Delaware, or at ial such later time as shall be agreed upon in writing by the Parent and the Company and specified in each of the Texas Certificate of Merger and the Delaware Certificate of Merger (the fic “Effective Time”). of Un 2.3 Effect of the Merger. At the Effective Time, the Merger shall have the effects set forth in this Agreement and the applicable provisions of the TBOC and the DGCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all of the property, rights, privileges, powers and franchises of each of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities, obligations, restrictions, disabilities and duties of each of the Company and Merger Sub shall become the debts, liabilities, 3 obligations, restrictions, disabilities and duties of the Surviving Corporation. Immediately after the Effective Time, the Parent shall own all of the stock and other equity, if any, in the Surviving Corporation and shall be the sole stockholder of the Surviving Corporation, and the Surviving Corporation shall be treated as a direct corporate subsidiary of the Parent for U.S. federal income Tax purposes. 2.4 Organizational Documents of the Surviving Corporation. At the Effective k Time, the certificate of incorporation and the bylaws of the Surviving Corporation shall be ler amended and restated to be in the form of the certificate of incorporation and bylaws of Merger Sub as