CONTRIBUTION AGREEMENTContribution Agreement |
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LONE STAR TECHNOLOGIES INC | APOLO TUBOS E EQUIPAMENTOS S.A | LONE STAR BRAZIL HOLDINGS 2 LTDA | APOLO MECĀNICA E ESTRUTURAS LTDA | GPC PARTICIPACOES S.A | CIRRUS PARTICIPACOES LTDA | LONE STAR TECHNOLOGIES, INC. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
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Exhibit 10.1
CONTRIBUTION AGREEMENT
AMONG
APOLO TUBOS E EQUIPAMENTOS S.A.
LONE STAR BRAZIL HOLDINGS 2 LTDA.
APOLO MECÂNICA E ESTRUTURAS LTDA.
GPC PARTICIPACOES S.A.
CIRRUS PARTICIPACOES LTDA.
AND
LONE STAR TECHNOLOGIES, INC.
Dated as of October 24, 2006
TABLE OF CONTENTS
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ARTICLE 1 |
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DEFINITIONS |
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2 |
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1.1 |
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Defined Terms |
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2 |
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ARTICLE 2 |
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CONTRIBUTION |
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12 |
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2.1 |
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LSB 2 Investment |
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12 |
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2.2 |
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Anticipated Payments of the Promissory Note |
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13 |
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2.3 |
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Closing Statement |
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13 |
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2.4 |
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Purchase Price Adjustment |
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14 |
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2.5 |
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Use of the LSB 2 Investment |
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17 |
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ARTICLE 3 |
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CLOSING |
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17 |
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3.1 |
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Closing Date |
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17 |
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ARTICLE 4 |
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DELIVERABLES |
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17 |
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4.1 |
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Items to Be Delivered by Tubos |
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17 |
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4.2 |
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Items to Be Delivered by LSB 2 |
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18 |
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4.3 |
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Items to Be Delivered by the Company |
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19 |
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ARTICLE 5 |
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REPRESENTATIONS AND WARRANTIES OF TUBOS, THE COMPANY, GPC AND CIRRUS |
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19 |
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5.1 |
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Existence and Good Standing |
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20 |
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5.2 |
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Authorization of Agreement |
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20 |
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5.3 |
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Conflicts; Consents of Third Parties |
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21 |
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5.4 |
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No Undisclosed Liability |
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21 |
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5.5 |
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Real Property |
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22 |
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5.6 |
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Environmental Matters |
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23 |
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5.7 |
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Taxes |
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23 |
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5.8 |
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Intellectual Property |
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24 |
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5.9 |
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Ownership |
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25 |
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5.10 |
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Subsidiaries |
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25 |
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5.11 |
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Compliance with Law |
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25 |
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5.12 |
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Financial Statements |
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25 |
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5.13 |
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Material Adverse Effect |
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26 |
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5.14 |
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Material Contracts |
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26 |
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TABLE OF
CONTENTS
(continued)
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5.15 |
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Employee Matters |
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28 |
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5.16 |
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Legal Proceeding |
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29 |
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5.17 |
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Insurance |
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29 |
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5.18 |
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Inventory |
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29 |
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5.19 |
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Accounts Receivable |
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30 |
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5.20 |
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Related Persons |
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30 |
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5.21 |
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Tubular Products Contracts |
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30 |
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5.22 |
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GPC, Cirrus or Tubos Legal Proceeding |
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30 |
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ARTICLE 6 |
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REPRESENTATIONS AND WARRANTIES OF LSB 2 AND LONE STAR |
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31 |
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6.1 |
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Existence and Good Standing |
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31 |
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6.2 |
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Authorization of Agreement |
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31 |
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6.3 |
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Conflicts; Consents of Third Parties |
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32 |
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6.4 |
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Ownership of Star Brazil Cayman |
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32 |
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6.5 |
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No Liabilities; Assets |
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32 |
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6.6 |
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Employee Matters |
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32 |
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6.7 |
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Legal Proceeding |
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32 |
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6.8 |
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Compliance with Law |
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33 |
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6.9 |
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Contracts |
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33 |
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6.10 |
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Taxes |
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33 |
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ARTICLE 7 |
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COVENANTS |
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34 |
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7.1 |
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No-Shop |
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34 |
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7.2 |
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Operations Prior to the Closing Date |
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34 |
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7.3 |
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Indebtedness |
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37 |
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7.4 |
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Employees |
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37 |
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7.5 |
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Transfer of Assets |
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37 |
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7.6 |
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Subsidiaries |
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38 |
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7.7 |
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PAT Registration |
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38 |
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7.8 |
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Antitrust Filing |
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39 |
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7.9 |
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Realization of Tax Receivables and Other Tax Assets/Credits |
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39 |
ii
TABLE OF
CONTENTS
(continued)
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7.10 |
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Conversion of the Company |
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39 |
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7.11 |
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Special Oto Mills Production Line |
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39 |
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7.12 |
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Best Efforts |
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40 |
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ARTICLE 8 |
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CONDITIONS TO CLOSING |
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40 |
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8.1 |
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Conditions Precedent to Obligations of Tubos |
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40 |
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8.2 |
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Conditions Precedent to Obligations of LSB 2 |
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40 |
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ARTICLE 9 |
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TERMINATION |
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42 |
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9.1 |
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Termination of Agreement |
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42 |
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9.2 |
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Procedure for Termination |
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43 |
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9.3 |
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Effect of Termination |
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43 |
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ARTICLE 10 |
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INDEMNIFICATION |
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43 |
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10.1 |
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Survival of Representations, Warranties and Covenants |
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43 |
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10.2 |
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Indemnification |
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44 |
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10.3 |
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Indemnification Procedures |
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45 |
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10.4 |
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Limitations on Indemnification for Breaches of Representations and Warranties |
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47 |
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ARTICLE 11 |
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MISCELLANEOUS |
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48 |
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11.1 |
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Waiver of Default |
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48 |
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11.2 |
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Amendment |
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48 |
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11.3 |
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No Third Party Rights |
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48 |
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11.4 |
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Severability |
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48 |
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11.5 |
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Binding Effect; Assignment |
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49 |
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11.6 |
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Headings |
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49 |
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11.7 |
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Word Meanings |
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49 |
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11.8 |
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Counterparts |
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49 |






