Exhibit 10.1
AMENDMENT NO. 2 TO CREDIT AGREEMENT AND JOINDER AGREEMENT
     This Amendment No. 2 to Credit Agreement and Joinder Agreement, dated as of
July 15, 2011 (this “Amendment”), is entered into by BASIC ENERGY SERVICES,
INC., a Delaware corporation (the “Borrower”), the lenders party to the Credit
Agreement described below, and BANK OF AMERICA, N.A., as Administrative Agent
(in such capacity, the “Administrative Agent”), a Swing Line Lender and an L/C
Issuer.
INTRODUCTION
     Reference is made to the Credit Agreement dated as of February 15, 2011 (as
modified from time to time, the “Credit Agreement”), among the Borrower, the
lenders from time to time party thereto (collectively, the “Lenders” and
individually, a “Lender”), and the Administrative Agent.
     Pursuant to Section 2.14 of the Credit Agreement, the Borrower has the
right to request, subject to the terms and conditions thereof, an increase in
the Aggregate Commitments.
     The Borrower has given notice to the Administrative Agent pursuant to
Section 2.14 of the Credit Agreement of its request to increase the Aggregate
Commitments and its intention to add a new Lender to the Credit Agreement, and
certain of the Lenders have severally agreed to increase their respective
Commitments on the terms and conditions set forth herein.
     In connection with the foregoing, the Lenders and the Administrative Agent
have agreed, on the terms and conditions set forth herein, to make certain
amendments to the Credit Agreement.
     THEREFORE, in connection with the foregoing and for other good and valuable
consideration, the Borrower, the Lenders, and the Administrative Agent hereby
agree as follows:
     Section 1. Definitions; References. Unless otherwise defined in this
Amendment, each term used in this Amendment that is defined in the Credit
Agreement has the meaning assigned to such term in the Credit Agreement.
     Section 2. Amendment of Credit Agreement. The Credit Agreement is hereby
amended by replacing Schedule 1.01 in its entirety with Schedule 1.01 attached
hereto.
     Section 3. Increase of Commitments. Pursuant to Section 2.14 of the Credit
Agreement:
     (a) The Commitment of Bank of America, N.A., is hereby increased from
$40,000,000 to $50,000,000;
     (b) The Commitment of Wells Fargo Bank, National Association, is hereby
increased from $40,000,000 to $50,000,000;
     (c) The Commitment of Comerica Bank is hereby increased from $25,000,000 to
$35,000,000.

 

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     (d) The Commitment of Amegy Bank, N.A., is hereby increased from
$20,000,000 to $25,000,000.
     Section 4. Addition of New Lender. Goldman Sachs Bank USA is hereby added
to the Credit Agreement as a Lender in accordance with Section 2.14(c) thereof,
with a Commitment as provided on Schedule 1.01 attached hereto, and such Lender
agrees to be bound by all of the terms and provisions of the Credit Agreement
binding on each Lender.
     Section 5. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on the financial statements referred to in Section 6.01 of the
Credit Agreement and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Amendment and to agree to the various matters set forth herein. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement.
     Section 6. Representations and Warranties. The Borrower represents and
warrants that (a) the execution, delivery, and performance of this Amendment by
each Loan Party are within the corporate or equivalent power and authority of
such Loan Party and have been duly authorized by all necessary corporate or
other organizational action, (b) this Amendment, and the Credit Agreement as
amended hereby, constitute legal, valid, and binding obligations of each Loan
Party, enforceable against each Loan Party in accordance with their terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or similar laws of general applicability
affecting the enforcement of creditors’ rights and the application of general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or law); (c) the representations and warranties of the
Borrower and each other Loan Party contained in each Loan Document are true and
correct as of the date of this Amendment, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date; (d) no Default or
Event of Default exists under the Loan Documents; and (e) the Liens under the
Security Documents are valid and subsisting.
     Section 7. Effect on Credit Documents. (a) Except as amended herein, the
Credit Agreement and all other Loan Documents remain in full force and effect as
originally executed. Nothing herein shall act as a waiver of any of the
Administrative Agent’s or any Lender’s rights under the Loan Documents as
amended, including the waiver of any default or event of default, however
denominated. The Borrower acknowledges and agrees that this Amendment shall in
no manner impair or affect the validity or enforceability of the Credit
Agreement. This Amendment is a Loan Document for the purposes of the provisions
of the other Loan Documents. Without limiting the foregoing, any breach of
representations, warranties, and covenants under this Amendment may be a default
or event of default under the other Loan Documents.
     (b) The Borrower shall prepay any Revolving Credit Loans outstanding on the
Revolving Credit Increase Effective Date (and pay any additional amounts
required pursuant to Section 3.05 of the Credit Agreement) to the extent
necessary to keep the outstanding Revolving Credit Loans ratable with any
revised Applicable Percentages arising from any nonratable

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increase in the Commitments under this Amendment and Borrower may use advances
from Lenders having new or increased Commitments for such purpose.
     Section 8. Effectiveness. This Amendment shall become effective, and the
Credit Agreement shall be amended as provided for herein, upon the satisfaction
of the following conditions:
     (a) the Administrative Agent (or its counsel) shall have received
(i) counterparts hereof duly executed and delivered by a duly authorized officer
of the Borrower, each Guarantor, and by the Lenders whose consent is required to
effect the amendments contemplated hereby;
     (b) the Administrative Agent (or its counsel) shall have received each of
the items listed on the Closing Documents List attached hereto as Annex I, each
in form and substance reasonably acceptable to the Administrative Agent and,
where applicable, duly executed and delivered by a duly authorized officer of
each applicable Loan Party; and
     (c) the Administrative Agent shall have received, or shall concurrently
receive (i) for the account of each Lender joining the Credit Agreement hereby
or increasing its Commitment pursuant hereto that has delivered an executed
counterpart of this Amendment to the Administrative Agent (or its counsel) by
2:00 p.m. (Central time) on July 15, 2011, an upfront fee equal to 50 basis
points on the amount of such Lender’s new Commitment or the amount by which such
Lender’s Commitment is increased under this Amendment, as applicable, and
(ii) for the account of the applicable Person, payment of all other fees that
have been invoiced and are payable in connection with this Amendment.
     Section 9. Reaffirmation of Guaranty. By its signature hereto, each
Guarantor represents and warrants that such Guarantor has no defense to the
enforcement of the Guaranty, and that according to its terms the Guaranty will
continue in full force and effect to guaranty the Borrower’s obligations under
the Credit Agreement and the other amounts described in the Guaranty following
the execution of this Amendment.
     Section 10. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
     Section 11. Miscellaneous. The miscellaneous provisions set forth in
Article X of the Credit Agreement apply to this Amendment. This Amendment may be
signed in any number of counterparts, each of which shall be an original, and
may be executed and delivered by telecopier or other electronic imaging means.
     Section 12. ENTIRE AGREEMENT. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
[Signature pages follows.]

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     EXECUTED as of the first date above written.

            BASIC ENERGY SERVICES, INC.
      By:   /s/ Kenneth V. Huseman         Kenneth V. Huseman        President
and Chief Executive Officer     

Signature Page to Amendment No. 2 to Credit Agreement

 

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            BASIC ENERGY SERVICES GP, LLC
ACID SERVICES, LLC
ADMIRAL WELL SERVICE, INC.
BASIC MARINE SERVICES, INC.
CHAPARRAL SERVICE, INC.
JETSTAR ENERGY SERVICES, INC.
JETSTAR HOLDINGS, INC.
JS ACQUISITION LLC
PERMIAN PLAZA, LLC
PLATINUM PRESSURE SERVICES, INC.
SLEDGE DRILLING CORP.
WILDHORSE SERVICES, INC.
XTERRA FISHING & RENTAL TOOLS CO.
      By:   /s/ Kenneth V. Huseman         Kenneth V. Huseman        President
and Chief Executive Officer       
BASIC ENERGY SERVICES LP, LLC, as a Guarantor
 
    By:   /s/ Jerry Tufly         Jerry Tufly        Sole Manager     

Signature Page to Amendment No. 2 to Credit Agreement

 

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            BASIC ENERGY SERVICES, L.P.    

         
 
  By:   BASIC ENERGY SERVICES GP,
LLC, its General Partner
 
       
 
  By:   BASIC ENERGY SERVICES,
INC., its Sole Member

                  By:   /s/ Kenneth V. Huseman         Kenneth V. Huseman       
President        BASIC ESA, INC.
FIRST ENERGY SERVICES COMPANY
GLOBE WELL SERVICE, INC.
HENNESSEY RENTAL TOOLS, INC.
LEBUS OIL FIELD SERVICE CO.
OILWELL FRACTURING SERVICES, INC.
SCH DISPOSAL, L.L.C.
      By:   /s/ Kenneth V. Huseman         Kenneth V. Huseman        President 
      TAYLOR INDUSTRIES, LLC
      By:   /s/ Kenneth V. Huseman         Kenneth V. Huseman        Chief
Executive Officer     

Signature Page to Amendment No. 2 to Credit Agreement

 

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                  BANK OF AMERICA, N.A., as
Administrative Agent    
 
           
 
  By:
Name:   /s/ Michelle D. Diggs
 
Michelle D. Diggs    
 
  Title:   Agency Management Officer    

Signature Page to Amendment No. 2 to Credit Agreement

 

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                  BANK OF AMERICA, N.A., as a Lender, L/C
Issuer and Swing Line Lender    
 
           
 
           
 
  By:
Name:   /s/ David A. Batson
 
David A. Batson    
 
  Title:   SVP    

Signature Page to Amendment No. 2 to Credit Agreement

 

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                  CAPITAL ONE, NATIONAL
ASSOCIATION, as a Lender, L/C Issuer and
Swing Line Lender    
 
           
 
  By:   /s/ Bobby Hamilton
 
   
 
  Name:   Bobby Hamilton    
 
  Title:   Vice President    

Signature Page to Amendment No. 2 to Credit Agreement

 

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                  WELLS FARGO BANK, NATIONAL ASSOCIATION    
 
           
 
  By:
Name:   /s/ Donald W. Herrick Jr.
 
Donald W. Herrick Jr.    
 
  Title:   Director    

Signature Page to Amendment No. 2 to Credit Agreement

 

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                  AMEGY BANK, N.A.    
 
           
 
  By:
Name:   /s/ Scott Collins
 
Scott Collins    
 
  Title:   Vice President    

Signature Page to Amendment No. 2 to Credit Agreement

 

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                  COMERICA BANK    
 
           
 
  By:
Name:   /s/ Gary Culbertson
 
Gary Culbertson    
 
  Title:   Vice President    

Signature Page to Amendment No. 2 to Credit Agreement

 

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                  GOLDMAN SACHS BANK USA    
 
           
 
  By:   /s/ Mark Walton
 
   
 
  Name:   Mark Walton    
 
  Title:   Authorized Signatory    

Signature Page to Amendment No. 2 to Credit Agreement

 

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SCHEDULE 1.01
COMMITMENTS
AND APPLICABLE PERCENTAGES

                              Revolving Credit     Revolving Credit   Applicable
Lender   Commitment   Percentage
Bank of America, N.A.
  $ 50,000,000     22.222222222 %
Capital One, National Association
  $ 40,000,000     17.777777778 %
Wells Fargo Bank, National Association
  $ 50,000,000     22.222222222 %
Comerica Bank
  $ 35,000,000     15.555555556 %
Amegy Bank, N.A.
  $ 25,000,000     11.111111111 %
Goldman Sachs Bank USA
  $ 25,000,000     11.111111111 %            
TOTAL
  $ 225,000,000     100.000000000 %            

Schedule 1.01

 

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ANNEX 1
[See attached.]
Annex 1