Document:

exv10w1

Exhibit 10.1

$600,000,000

Oil States International, Inc.

6.500% Senior Notes due 2019

PURCHASE AGREEMENT

May 26, 2011

CREDIT SUISSE SECURITIES (USA) LLC

RBC CAPITAL MARKETS, LLC

WELLS FARGO SECURITIES, LLC

As Representatives of the Several Purchasers,

c/o Credit Suisse Securities (USA) LLC,

Eleven Madison Avenue,

New York, N.Y. 10010-3629

Ladies and Gentlemen:

     1. Introductory. Oil States International, Inc., a Delaware corporation (the “Company”),
agrees with the several initial purchasers named in Schedule A hereto (the “Purchasers”)
subject to the terms and conditions stated herein, to issue and sell to the several Purchasers
U.S.$600,000,000 principal amount of its 6.500% Senior Notes due 2019 (the “Offered Securities”) to
be issued under an indenture, to be dated as of June 1, 2011 (the “Indenture”), among the Company,
the Guarantors (as defined below) and Wells Fargo Bank, N.A., as Trustee (the “Trustee”). The
Offered Securities will be unconditionally guaranteed as to the payment of principal and interest
by each of the subsidiaries (as defined below) listed on Schedule C hereto (collectively,
the “Guarantors” and such guarantees, the “Guarantees”).

     The holders of the Offered Securities will be entitled to the benefits of a Registration
Rights Agreement to be dated as of the Closing Date among the Company, the Guarantors and the
Purchasers (the “Registration Rights Agreement”), pursuant to which the Company and each Guarantor
shall agree to file a registration statement with the Commission registering (a) the exchange of
the Offered Securities for debt securities with identical terms as the Offered Securities (the
“Exchange Notes”) and the exchange of the Guarantees for guarantees with identical terms as the
Guarantees (the “Exchange Guarantees” and together with the Exchange Notes, the “Exchange
Securities”) that will be registered under the Securities Act (the “Exchange Offer”) and (b) under
certain circumstances, the resale of the Offered Securities and the related Guarantees under the
Securities Act.

     Each of the Company and each Guarantor hereby agrees with the several Purchasers as follows:

     2. Representations and Warranties of the Company and each Guarantor. Each of the Company and
each Guarantor jointly and severally represents and warrants to, and agrees with, the several
Purchasers that:

 

 

     (a) Offering Circulars; Certain Defined Terms. The Company has prepared or will
prepare a Preliminary Offering Circular and a Final Offering Circular.

     For purposes of this Agreement:

     “Applicable Time” means 1:30 p.m. (New York City time) on the date of this Agreement.

     “Closing Date” has the meaning set forth in Section 3 hereof.

     “Commission” means the Securities and Exchange Commission.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     “Final Offering Circular” means the final Offering Circular relating to the Offered Securities
to be offered by the Purchasers that discloses the offering price and other final terms of the
Offered Securities and is dated as of the date of this Agreement, including the documents
incorporated by reference therein.

     “Free Writing Communication” means a written communication (as such term is defined in Rule
405) that constitutes an offer to sell or a solicitation of an offer to buy the Offered Securities
and is made by means other than the Preliminary Offering Circular or the Final Offering Circular.

     “General Disclosure Package” means the Preliminary Offering Circular together with any Issuer
Free Writing Communication existing at the Applicable Time and specified on Schedule B
hereto and the information which is intended for general distribution to prospective investors, as
evidenced by its being specified in Schedule B hereto.

     “Issuer Free Writing Communication” means a Free Writing Communication prepared by or on
behalf of the Company, used or referred to by the Company or containing a description of the final
terms of the Offered Securities or of their offering, in the form retained in the Company’s
records.

     “Preliminary Offering Circular” means the preliminary Offering Circular, dated May 19, 2011,
relating to the Offered Securities to be offered by the Purchasers, including the documents
incorporated by reference therein.

     “Rules and Regulations” means the rules and regulations of the Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Securities Laws” means, collectively, the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”), the
Securities Act, the Exchange Act, the Rules and Regulations, the auditing principles, rules,
standards and practices applicable to auditors of “issuers” (as defined in Sarbanes-Oxley)
promulgated or approved by the Public Company Accounting Oversight Board and, as applicable, the
rules of the New York Stock Exchange (“Exchange Rules”).

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     “subsidiary” means any entity in which the Company has a direct or indirect majority equity or
voting interest.

     “Supplemental Marketing Material” means any Issuer Free Writing Communication other than any
Issuer Free Writing Communication specified in Schedule B hereto. Supplemental Marketing
Materials include, but are not limited to, the electronic roadshow slides and the accompanying
audio recording.

     Unless otherwise specified, a reference to a “Rule” or a “Regulation” is to the indicated rule
or regulation under the Securities Act.

     (b) Disclosure. As of the date of this Agreement, the Final Offering Circular does
not, and as of the Closing Date, the Final Offering Circular will not, include any untrue
statement of a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading. As of the Applicable Time, and as of the Closing Date, neither (i) the General
Disclosure Package, nor (ii) any individual Supplemental Marketing Material, when considered
together with the General Disclosure Package, included, or will include, any untrue
statement of a material fact or omitted, or will omit, to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The preceding two sentences do not apply to statements in or
omissions from the Preliminary Offering Circular or Final Offering Circular, the General
Disclosure Package or any Supplemental Marketing Material based upon written information
furnished to the Company by any Purchaser through the Representatives specifically for use
therein, it being understood and agreed that the only such information is that described as
such in Section 8(b) hereof.

     (c) Good Standing of the Company and its Subsidiaries. Each of the Company and each of
its subsidiaries has been duly organized, is validly existing and in good standing as a
corporation or other business entity under the laws of its jurisdiction of incorporation,
organization or formation, as the case may be, with full power and authority (corporate and
other) necessary to own or lease its properties and conduct its business, in each case as
described in the General Disclosure Package and the Final Offering Circular; and the Company
and each of its subsidiaries is duly registered or qualified to do business as a foreign
corporation or other business entity, as the case may be, in good standing under the laws of
each jurisdiction in which its ownership or lease of property or the conduct of its business
requires such qualification except where the failure to be so qualified would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect
on the condition (financial or otherwise), results of operations, stockholders’ equity,
business, properties or prospects of the Company and its subsidiaries taken as a whole (a
“Material Adverse Effect”). The Company does not have a direct or indirect majority equity
or voting interest in any corporation, association or other entity other than the entities
listed on Schedule D to this Agreement.

     (d) Power and Authority. Each of the Company and each Guarantor has all requisite
corporate, limited liability company, or limited partnership power and authority

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to execute, deliver and perform its obligations under this Agreement, the Indenture,
the Offered Securities and the Exchange Securities to which it is a party and to consummate
the transactions contemplated hereby and thereby.

     (e) Capitalization. The Company has an authorized capitalization as set forth in the
General Disclosure Package and the Final Offering Circular, and all of the issued shares of
capital stock of the Company have been duly authorized and validly issued, are fully paid
and non-assessable, and were issued in compliance with federal and state securities laws and
not in violation of any preemptive right, resale right, right of first refusal or similar
right. Except as disclosed in the General Disclosure Package and the Final Offering
Circular, no options, warrants or other rights to purchase or exchange any securities for
shares of the Company’s capital stock are outstanding. All of the issued and outstanding
shares of capital stock or other equity interests of each subsidiary of the Company have
been duly authorized and validly issued, are fully paid and non-assessable and are owned
directly or indirectly by the Company, free and clear of all liens, encumbrances, equities
or claims, except for such liens, encumbrances, equities or claims arising under the Amended
and Restated Credit Agreement, dated as of December 10, 2010 (the “Credit Agreement”), among
the Company, PTI Group Inc., PTI Premium Camp Services Ltd., as borrowers, and the lenders
named therein and the Loan Agreement, dated as of 8 July 2008 (the “Australian Credit
Agreement”), between The MAC Services Group Limited, the MAC Linen Services Pty Ltd, MSL
Nominees Pty Ltd and National Australia Bank Limited, as amended, or as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     (f) Indenture. The Indenture has been duly and validly authorized by the Company and
each of the Guarantors and, when duly executed and delivered by each of the Company and the
Guarantors (assuming the due authorization, execution and delivery thereof by the Trustee),
will constitute the valid and legally binding agreement of each of the Company and the
Guarantors, enforceable against them in accordance with its terms, except that the
enforcement thereof may be subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles (collectively, the
“Enforceability Exceptions”).

     (g) Offered Securities. The Offered Securities have been duly and validly authorized
by the Company and, when the Offered Securities are duly executed, issued and delivered by
the Company and paid for by the Purchasers pursuant to this Agreement on the Closing Date
(assuming the due authorization, execution and delivery of the Indenture by the Trustee and
due authentication and delivery of the Offered Securities by the Trustee in accordance with
the Indenture), such Offered Securities will conform to the information in the General
Disclosure Package and the Final Offering Circular and will conform to the description of
such Offered Securities contained in the Final Offering Circular and the Indenture, and the
Offered Securities will constitute the valid and legally binding obligations of the Company,
entitled to the benefits of the Indenture, and enforceable against the Company in accordance
with their terms, subject to the Enforceability Exceptions.

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     (h) Trust Indenture Act. On the Closing Date, the Indenture will conform in all
material respects to the requirements of the Trust Indenture Act of 1939, as amended (the
“Trust Indenture Act”), and the Rules and Regulations applicable to an indenture which is
qualified thereunder.

     (i) No Finder’s Fee. Except as disclosed in the General Disclosure Package and the
Final Offering Circular, there are no contracts, agreements or understandings between the
Company and any person that would give rise to a valid claim against the Company or any
Purchaser for a brokerage commission, finder’s fee or other like payment.

     (j) Registration Rights Agreement. The Registration Rights Agreement has been duly
authorized by the Company and the Guarantors and, when the Offered Securities are delivered
and paid for pursuant to this Agreement on the Closing Date, the Registration Rights
Agreement will have been duly executed and delivered and will constitute the valid and
legally binding obligations of the Company and the Guarantors, enforceable in accordance
with their terms, subject to (i) the Enforceability Exceptions and (ii) any rights to
indemnity or contribution thereunder may be limited by federal and state securities laws and
public policy considerations.

     (k) Exchange Securities. The Exchange Securities have been duly and validly authorized
by the Company and each Guarantor, as applicable, and, when the Exchange Securities are duly
issued, executed, authenticated and delivered in accordance with the terms of the Exchange
Offer and the Indenture (assuming the due authorization, execution and delivery of the
Indenture by the Trustee and due authentication and delivery of the Exchange Securities by
the Trustee in accordance with the Indenture), the Exchange Securities will be validly
issued and will constitute the valid and legally binding obligations of the Company and the
Guarantors, as applicable, entitled to the benefits of the Indenture, and enforceable
against the Company and the Guarantors in accordance with their terms, subject to the
Enforceability Exceptions.

     (l) Guarantee. The Guarantee of each Guarantor has been duly authorized by such
Guarantor and, when the Offered Securities are delivered and paid for pursuant to this
Agreement on the Closing Date and issued, executed and authenticated in accordance with the
terms of the Indenture, the Guarantee of each Guarantor endorsed thereon will have been duly
executed and delivered by such Guarantor, will conform to the description thereof contained
in the Final Offering Circular and will constitute valid and legally binding obligations of
such Guarantor, enforceable in accordance with its terms, subject to the Enforceability
Exceptions.

     (m) No Registration Rights. There are no contracts, agreements or understandings
between the Company or any Guarantor and any person granting such person the right to
require the Company or such Guarantor to file a registration statement under the Securities
Act with respect to any securities of the Company or such Guarantor or to require the
Company or such Guarantor to include such securities with the Offered Securities and
Guarantees registered pursuant to any Registration Statement.

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     (n) Absence of Further Requirements. No consent, approval, authorization, or order of,
or filing or registration with, any person (including any governmental agency or body or any
court) is required for the execution, delivery and performance of this Agreement by the
Company and the Guarantors, the consummation of the transactions contemplated by this
Agreement, the Indenture and the Registration Rights Agreement in connection with the
offering, issuance and sale of the Offered Securities and the Guarantees by the Company and
the Guarantors, and the application of the proceeds from the sale of the Offered Securities
by the Company as described under “Use of Proceeds” in the General Disclosure Package and
the Final Offering Circular, except for, (i) if required, the order of the Commission
declaring effective the Exchange Offer Registration Statement or, if required, the Shelf
Registration Statement (each as defined in the Registration Rights Agreement), (ii) if
required, the qualification of the Indenture under the Trust Indenture Act in connection
with the issuance of the Exchange Notes, (iii) such as have previously been obtained and
(iv) applicable federal, state or foreign securities laws in connection with the purchase
and sale of the Offered Securities by the Purchasers.

     (o) Title to Property. Except as disclosed in the General Disclosure Package and the
Final Offering Circular, the Company and each of its subsidiaries have good and indefeasible
title to all real property and valid title to all other property and assets owned by them,
in each case free and clear of all liens, charges, encumbrances and defects, except such as
arise under the Credit Agreement and the Australian Credit Agreement or as would not
materially affect the value thereof or materially interfere with the use made or to be made
thereof by them; and except as disclosed in the General Disclosure Package and the Final
Offering Circular, the Company and each of its subsidiaries hold any leased real or personal
property under valid and enforceable leases with no terms or provisions that would
materially interfere with the use made or to be made thereof by them.

     (p) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of the Indenture, the Offered Securities, the Registration Rights
Agreement and this Agreement by the Company and the Guarantors, the issuance and sale of the
Offered Securities and the Guarantees by the Company and the Guarantors and compliance with
the terms and provisions hereof and thereof, and the application of the proceeds from the
sale of the Offered Securities by the Company as described under “Use of Proceeds” in the
General Disclosure Package and the Final Offering Circular will not (i) conflict with or
result in a breach or violation of any of the terms or provisions of, or constitute a
default or a Debt Repayment Triggering Event (as defined below) under, or result in the
imposition of any lien, charge or encumbrance upon any property or assets of the Company or
its subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement,
license or other agreement or instrument to which the Company or any of its subsidiaries is
a party or by which the Company or any of its subsidiaries is bound or to which any of the
properties or assets of the Company or any of its subsidiaries is subject (other than the
guarantee of the Company’s 23/8% Contingent Convertible Senior Notes due 2025 by certain of
the Company’s subsidiaries, which guarantee shall be effected at or prior to the Closing
Date); (ii) result in any violation of the provisions of the charter or by-laws (or similar
organizational documents) of the Company or any of its subsidiaries; or (iii) result in any
violation of any statute or

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any judgment, order, rule or regulation of any court or governmental agency or body
having jurisdiction over the Company or any of its subsidiaries or any of their properties
or assets, except in the case of clauses (i) and (iii) above for such conflicts, breaches,
defaults, violations or liens that would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

     (q) Absence of Existing Defaults and Conflicts. Neither the Company nor any of its
subsidiaries (i) is in violation of its respective charter or by-laws (or similar
organizational documents), (ii) is in default, and no event has occurred that, with the
giving of notice or lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in any indenture,
deed of trust, loan agreement, mortgage, lease, license or other agreement or instrument to
which it is a party or by which it is bound or to which any of its properties or assets is
subject or (iii) is in violation of any statute or any order, rule or regulation of any
court or governmental agency or body having jurisdiction over it or its property or assets
or has failed to obtain any license, permit, certificate, franchise or other governmental
authorization or permit necessary to the ownership of its property or to the conduct of its
business, except in the case of clauses (ii) and (iii), to the extent any such conflict,
breach, violation or default would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

     (r) Authorization of Agreement. The Company and each of the Guarantors has all
requisite corporate power and authority to execute, deliver and perform its obligations
under this Agreement. This Agreement has been duly and validly authorized, executed and
delivered by the Company and the Guarantors.

     (s) Possession of Licenses and Permits. The Company and each of its subsidiaries
possess all adequate certificates, authorizations, franchises, licenses and permits
(“Licenses”) necessary or material to the conduct of the business now conducted or proposed
in the General Disclosure Package and the Final Offering Circular to be conducted by them
and have not received any notice of proceedings relating to the revocation or modification
of any Licenses that, if determined adversely to the Company or any of its subsidiaries,
would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect; the Company and each of its subsidiaries have fulfilled and performed all of
its obligations with respect to the Licenses, and no event has occurred that allows, or
after notice or lapse of time would allow, revocation or termination thereof or results in
any other impairment of the rights of the holder of any such Licenses, except for any of the
foregoing that would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

     (t) Absence of Labor Dispute. No labor dispute or disturbance by the employees of the
Company or its subsidiaries exists or, to the knowledge of the Company or the Guarantors, is
imminent that could reasonably be expected to have a Material Adverse Effect.

     (u) Possession of Intellectual Property. The Company and each of its subsidiaries own
or possess or can acquire on reasonable terms, adequate rights to use all

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material patents, patent applications, trademarks, service marks, trade names,
trademark registrations, service mark registrations, copyrights, licenses, know-how,
software, systems and technology (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures) (collectively,
“intellectual property rights”) necessary to conduct the business now operated by them, or
presently employed by them, and have not received any notice of any claim of infringement of
or conflict with asserted rights of others with respect to any intellectual property rights
that, if determined adversely to the Company or any of its subsidiaries, could, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     (v) Environmental Laws. Except as disclosed in the General Disclosure Package and the
Final Offering Circular, (a)(i) neither the Company nor any of its subsidiaries is in
violation of, or has any liability under, any applicable federal or national, state or
provincial, regional or local law, directive, rule, regulation, ordinance, code, other
requirement or rule of law (including common law), or decision or order of any domestic,
foreign or international governmental agency, governmental body, court or tribunal, relating
to pollution, to the use, handling, transportation, treatment, storage, discharge, disposal
or release of Hazardous Substances, to the protection or restoration of the environment,
threatened or endangered species or natural resources (including biota), to climate change,
to health and safety including as such relates to exposure to Hazardous Substances, and to
natural resource damages (collectively, “Environmental Laws”), (ii) neither the Company nor
any of its subsidiaries owns, occupies, operates or uses any real property contaminated with
Hazardous Substances, (iii) neither the Company nor any of its subsidiaries is conducting or
funding any investigation, remediation, remedial action or monitoring of actual or suspected
Hazardous Substances released or threatened to be released into the environment, (iv)
neither the Company nor any of its subsidiaries is liable or allegedly liable for any
release or threatened release of Hazardous Substances, including at any off-site treatment,
storage or disposal site, (v) neither the Company nor any of its subsidiaries is subject to
any claim by any governmental agency or governmental body or person relating to
Environmental Laws or Hazardous Substances released or threatened to be released into the
environment, and (vi) the Company and its subsidiaries have received and are in compliance
with all, and have no liability under any, permits, licenses, authorizations, registrations,
identification numbers or other approvals required under applicable Environmental Laws to
conduct their respective businesses except, as to each matter covered by clauses (i) —
(vi), those that could not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect; (b) to the knowledge of the Company or the Guarantors there are
no facts or circumstances that would reasonably be expected to result in a violation of,
liability under, or claim pursuant to any Environmental Law that could reasonably be
expected to have a Material Adverse Effect; (c) to the knowledge of the Company or the
Guarantors there are no requirements proposed for adoption or implementation under any
Environmental Law that could reasonably be expected to have a Material Adverse Effect; and
(d) in the ordinary course of its business, the Company and each of its subsidiaries
periodically evaluate the effect, including associated costs and liabilities, of
Environmental Laws on the business, properties, results of operations and financial
condition of it, and, on the basis of such evaluation, the Company and each of its
subsidiaries reasonably concluded that such

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Environmental Laws will not, individually or in the aggregate, have a Material Adverse
Effect. For purposes of this subsection “Hazardous Substances” means (A) petroleum and
petroleum products, by-products or breakdown products, radioactive materials (including
naturally occurring radioactive materials), asbestos-containing materials and
polychlorinated biphenyls, and (B) any other chemical, material or substance defined or
regulated as toxic or hazardous or as a pollutant, contaminant or waste under Environmental
Laws.

     (w) Absence of Manipulation. None of the Company, the Guarantors or any of their
respective affiliates has, either alone or with one or more other persons, taken and will
not take, directly or indirectly, any action designed to or that has constituted or that
could reasonably be expected to cause or result in the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Offered
Securities.

     (x) Statistical and Market-Related Data. The statistical and market-related data
included in the Preliminary Offering Circular, the Final Offering Circular, and any Issuer
Free Writing Communication, are based on or derived from sources that the Company and the
Guarantors believe to be reliable and accurate.

     (y) Internal Controls and Compliance with the Sarbanes-Oxley Act. Except as set forth
in the General Disclosure Package and the Final Offering Circular, the Company and its Board
of Directors (the “Board”) are in compliance with Sarbanes-Oxley and all applicable Exchange
Rules. The Company maintains a system of “internal control over financial reporting” (as
defined in Rule 13a-15(f) of the Exchange Act) (“Internal Controls”) that complies with the
Securities Laws and is sufficient to provide reasonable assurances that (i) transactions are
executed in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial statements in
conformity with U.S. generally accepted accounting principles and to maintain accountability
for assets, (iii) access to assets is permitted only in accordance with management’s general
or specific authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to
any differences. The Internal Controls are overseen by the Audit Committee (the “Audit
Committee”) of the Board in accordance with the Exchange Rules. Since March 31, 2011, the
Company has not publicly disclosed or reported to the Audit Committee or the Board a
significant deficiency, material weakness, change in Internal Controls or fraud involving
management or other employees who have a significant role in Internal Controls (each, an
“Internal Control Event”), any violation of, or failure to comply with, the Securities Laws,
or any matter which, if determined adversely, would have a Material Adverse Effect.

     (z) Litigation. Except as disclosed in the General Disclosure Package and the Final
Offering Circular, there are no pending actions, suits or proceedings (including any
inquiries or investigations by any court or governmental agency or body, domestic or
foreign) against or affecting the Company or any of its subsidiaries or any of their
respective properties that, if determined adversely to the Company or any of its
subsidiaries, would individually or in the aggregate have a Material Adverse Effect, or

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would materially and adversely affect the ability of the Company or any Guarantor to
perform its obligations under the Indenture, this Agreement, or the Registration Rights
Agreement, or which are otherwise material in the context of the sale of the Offered
Securities and the Guarantees; and, to the knowledge of the Company or the Guarantors, no
such actions, suits or proceedings (including any inquiries or investigations by any court
or governmental agency or body, domestic or foreign) are threatened or contemplated.

     (aa) Financial Statements. The historical financial statements (including the related
notes and supporting schedules) included in the General Disclosure Package and the Final
Offering Circular comply as to form in all material respects with the requirements of
Regulation S-X under the Securities Act (other than the requirements of Item 3-10(a) of
Regulation S-X, as it applies to the Guarantees) and present fairly the financial condition,
results of operations and cash flows for the periods shown, and such financial statements
have been prepared in conformity with the generally accepted accounting principles in the
United States applied on a consistent basis throughout the periods involved. The pro forma
financial information included in the General Disclosure Package and the Final Offering
Circular includes assumptions that provide a reasonable basis for presenting the significant
effects directly attributable to the transactions and events described therein, the related
pro forma adjustments give appropriate effect to those assumptions, and the pro forma
adjustments reflect the proper application of those adjustments to the corresponding
historical financial statement amounts in the pro forma financial statements included in the
General Disclosure Package and the Final Offering Circular. The pro forma financial
information included in the General Disclosure Package and the Final Offering Circular
complies as to form in all material respects with the applicable requirements of Regulation
S-X under the Securities Act.

     (bb) Independent Auditor. Ernst & Young LLP, who have certified the financial
statements of the Company and its consolidated subsidiaries, whose report appears in the
General Disclosure Package and the Final Offering Circular and who have delivered the letter
referred to in Section 7(a) hereof, are independent registered public accountants as
required by the Securities Act and the Rules and Regulations.

     (cc) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package and the Final Offering Circular, since the end of the period covered by
the latest audited financial statements included in the General Disclosure Package (i) there
has been no change, nor any development or event involving a prospective change, that has
had or would be reasonably expected to have a Material Adverse Effect; and (ii) except as
disclosed in or contemplated by the General Disclosure Package and the Final Offering
Circular, there has been no dividend or distribution of any kind declared, paid or made by
the Company on any class of its capital stock.

     (dd) Investment Company Act. Neither the Company nor any Guarantor is, and after
giving effect to the offering and sale of the Offered Securities and the application of the
proceeds thereof as described in the General Disclosure Package and the Final Offering
Circular, will not be, an “investment company” within the meaning of such term

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under the Investment Company Act of 1940, as amended (the “Investment Company Act”),
and the rules and regulations of the Commission thereunder.

     (ee) Regulations T, U, X. Neither the Company nor any of its subsidiaries nor any
agent thereof acting on their behalf has taken, and none of them will take, any action that
might cause this Agreement or the issuance or sale of the Offered Securities to violate
Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve
System.

     (ff) Ratings. No “nationally recognized statistical rating organization” as such term
is defined for purposes of Rule 436(g)(2) (i) has imposed (or has informed the Company or
any Guarantor that it is considering imposing) any condition (financial or otherwise) on the
Company’s or any Guarantor’s retaining any rating assigned to the Company or any Guarantor
or any securities of the Company or any Guarantor or (ii) has indicated to the Company or
any Guarantor that it is considering any of the actions described in Section 7(b)(ii)
hereof.

     (gg) Class of Securities Not Listed. No securities of the same class (within the
meaning of Rule 144A(d)(3)) as the Offered Securities are listed on any national securities
exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated
inter-dealer quotation system.

     (hh) No Registration. The offer and sale of the Offered Securities in the manner
contemplated by this Agreement will be exempt from the registration requirements of the
Securities Act by reason of Section 4(2) thereof and Rule 144A and Regulation S thereunder;
and it is not necessary to qualify an indenture in respect of the Offered Securities under
the Trust Indenture Act.

     (ii) No General Solicitation; No Directed Selling Efforts. Neither the Company, nor
any Guarantor, nor any of their respective affiliates, nor any person acting on its or their
behalf (other than, in any case, the Purchasers and any of their affiliates, as to whom the
Company and the Guarantors make no representation or warranty) (i) has, within the six-month
period prior to the date hereof, offered or sold in the United States or to any U.S. person
(as such terms are defined in Regulation S under the Securities Act) the Offered Securities
or any security of the same class or series as the Offered Securities or (ii) has offered or
will offer or sell the Offered Securities (A) in the United States by means of any form of
general solicitation or general advertising within the meaning of Rule 502(c) or (B) with
respect to any such securities sold in reliance on Rule 903 of Regulation S under the
Securities Act, by means of any directed selling efforts within the meaning of Rule 902(c)
of Regulation S. The Company, the Guarantors, their respective affiliates and any person
acting on its or their behalf have complied and will comply with the offering restrictions
requirement of Regulation S. Neither the Company nor any Guarantor has entered and neither
the Company nor any Guarantor will enter into any contractual arrangement with respect to
the distribution of the Offered Securities except for this Agreement.

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     (jj) ERISA Compliance. Except as otherwise disclosed in the General Disclosure Package
and the Final Offering Circular, the Company and its subsidiaries and any “employee benefit
plan” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974 (as
amended, “ERISA,” which term, as used herein, includes the regulations and published
interpretations thereunder) established or maintained by the Company, its subsidiaries or
their ERISA Affiliates (as defined below) are in compliance in all material respects with
ERISA and, to the knowledge of the Company or the Guarantors, each “multiemployer plan” (as
defined in Section 4001 of ERISA) to which the Company, its subsidiaries or an ERISA
Affiliate contributes (a “Multiemployer Plan”) is in compliance in all material respects
with ERISA. “ERISA Affiliate” means, with respect to the Company or a subsidiary, any
member of any group of organizations described in Section 414(b), (c), (m) or (o) of the
Internal Revenue Code of 1986 (as amended, the “Code,” which term, as used herein, includes
the regulations and published interpretations thereunder) of which the Company or such
subsidiary is or, within the last six years, has been a member. No “reportable event” (as
defined in Section 4043 of ERISA) has occurred or is reasonably expected to occur with
respect to any “employee benefit plan” established or maintained by the Company, its
subsidiaries or any of their ERISA Affiliates. No “single employer plan” (as defined in
Section 4001 of ERISA) established or maintained by the Company, its subsidiaries or any of
their ERISA Affiliates, if such “employee benefit plan” were terminated, would have any
“amount of unfunded benefit liabilities” (as defined in Section 4001 of ERISA) that could,
individually or in the aggregate (with any other such “single employer plan”), reasonably be
expected to result in a Material Adverse Effect. Neither the Company, its subsidiaries nor
any of their ERISA Affiliates has incurred or reasonably expects to incur any liability (i)
under Title IV of ERISA with respect to termination of, or withdrawal from, any “employee
benefit plan” or (ii) that could, individually or in the aggregate, reasonably be expected
to result in a Material Adverse Change under Sections 430, 4971, 4975 or 4980B of the Code.
To the knowledge of the Company or the Guarantors, each “employee benefit plan” established
or maintained by the Company, its subsidiaries or any of their ERISA Affiliates that is
intended to be qualified under Section 401 of the Code is so qualified and nothing has
occurred, whether by action or failure to act, which would cause the loss of such
qualification.

     (kk) Foreign Corrupt Practices Act. Except as is disclosed in the Company’s Current
Report on Form 8-K dated February 18, 2005, none of the Company, any of its subsidiaries or
any of their respective directors or officers, or, to the Company’s knowledge, any other
person associated with or acting on behalf of the Company or any of its subsidiaries
including, without limitation, any agent or employee of the Company or any of its
subsidiaries, has, directly or indirectly, while acting on behalf of the Company or any of
its subsidiaries (i) used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity; (ii) made any
unlawful payment to foreign or domestic government officials or employees or to foreign or
domestic political parties or campaigns from corporate funds; (iii) violated any provision
of the Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any other unlawful
payment.

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     (ll) Compliance with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the
“Money Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its
subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge
of the Company or the Guarantors, threatened.

     (mm) Compliance with OFAC. Neither the Company nor any of its subsidiaries or, to the
knowledge of the Company or the Guarantors, any director, officer, agent, employee or
affiliate of the Company or its subsidiaries is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury
(“OFAC”); and neither the Company nor any Guarantor will directly or indirectly use the
proceeds of the offering of the Offered Securities hereunder, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner or other
person or entity, for the purpose of financing the activities of any person currently
subject to any U.S. sanctions administered by OFAC.

     (nn) Tax Returns. The Company and its subsidiaries have filed all federal, state,
local and foreign tax returns which are required to be filed through the date hereof, except
where the failure to so file would not have a Material Adverse Effect, which returns are
true and correct in all material respects or have received timely extensions thereof, and
have paid all taxes shown on such returns and all assessments received by them to the extent
that the same are material and have become due, except for such taxes as are being contested
in good faith and except as would not result in a Material Adverse Effect. There are no tax
audits or investigations pending, which if adversely determined would have a Material
Adverse Effect; nor are there any material proposed additional tax assessments against the
Company or any of its subsidiaries.

     (oo) Insurance. The Company and its subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are customary
in the businesses in which they are engaged or propose to engage after giving effect to the
transactions described in the General Disclosure Package and the Final Offering Circular;
all policies of insurance and fidelity or surety bonds insuring the Company or any of its
subsidiaries or the Company’s or its subsidiaries’ businesses, assets, employees, officers
and directors are in full force and effect; the Company and its subsidiaries are in
compliance with the terms of such policies and instruments in all material respects; and
none of the Company or any of the Guarantors has any reason to believe that the Company or
its subsidiaries will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that is not materially greater than the current cost, except
as would not, individually or in the aggregate, have a Material Adverse Effect.

13

 

     (pp) No Other Materials. The Company has not distributed and, prior to the Closing
Date, will not distribute, any offering material in connection with the offering and sale of
the Offered Securities other than the Preliminary Offering Circular, the Final Offering
Circular and any Issuer Free Writing Communication to which the Representatives have
consented.

     3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the several Purchasers, and each of the Purchasers agrees, severally and not
jointly, to purchase from the Company, at a purchase price of 98.2675% of the principal amount
thereof plus accrued interest from June 1, 2011 to the Closing Date (as hereinafter defined), the
respective principal amounts of Offered Securities set forth opposite the names of the several
Purchasers in Schedule A hereto.

     The Company will deliver against payment of the purchase price the Offered Securities to be
offered and sold by the Purchasers in reliance on Regulation S (the “Regulation S Securities”) in
the form of one or more permanent global Securities in registered form without interest coupons
(the “Offered Regulation S Global Securities”) which will be deposited with the Trustee as
custodian for The Depository Trust Company (“DTC”) for the respective accounts of the DTC
participants for Morgan Guaranty Trust Company of New York, Brussels office, as operator of the
Euroclear System (“Euroclear”), and Clearstream Banking, société anonyme (“Clearstream,
Luxembourg”) and registered in the name of Cede & Co., as nominee for DTC. The Company will deliver
against payment of the purchase price the Offered Securities to be purchased by each Purchaser
hereunder and to be offered and sold by each Purchaser in reliance on Rule 144A (the “144A
Securities”) in the form of one permanent global security in definitive form without interest
coupons (the “Restricted Global Securities”) deposited with the Trustee as custodian for DTC and
registered in the name of Cede & Co., as nominee for DTC. The Regulation S Global Securities and
the Restricted Global Securities shall be assigned separate CUSIP numbers. The Restricted Global
Securities shall include the legend regarding restrictions on transfer set forth under “Transfer
Restrictions” in the Final Offering Circular. Until the termination of the distribution compliance
period (as defined in Regulation S) with respect to the offering of the Offered Securities,
interests in the Regulation S Global Securities may only be held by the DTC participants for
Euroclear and Clearstream, Luxembourg. Interests in any permanent global Securities will be held
only in book-entry form through Euroclear, Clearstream, Luxembourg or DTC, as the case may be,
except in the limited circumstances described in the Final Offering Circular.

     Payment for the Regulation S Securities and the 144A Securities shall be made by the
Purchasers in Federal (same day) funds by wire transfer to an account at a bank designated by the
Company pursuant to written instructions provided by the Company, against delivery to the Trustee
as custodian for DTC of (i) the Regulation S Global Securities representing all of the Regulation S
Securities for the respective accounts of the DTC participants for Euroclear and Clearstream,
Luxembourg and (ii) the Restricted Global Securities representing all of the 144A Securities, at
the office of Vinson & Elkins L.L.P., First City Tower, 1001 Fannin Street, Suite 2500, Houston,
Texas 77002 at 10:00 a.m. (New York time), on June 1, 2011, or at such other time not later than
seven full business days thereafter as the Representatives and the Company determine, such time
being herein referred to as the “Closing Date”. The Offered Regulation S

14

 

Global Securities and the Restricted Global Securities will be made available for checking at the
above office of Vinson & Elkins L.L.P. at least 24 hours prior to the Closing Date.

     4. Representations by Purchasers; Resale by Purchasers.

     (a) Each Purchaser severally represents and warrants to the Company and the Guarantors
that it is an “accredited investor” within the meaning of Regulation D under the Securities
Act and is a qualified institutional buyer within the meaning of Rule 144A promulgated under
the Securities Act.

     (b) Each Purchaser severally acknowledges that the Offered Securities have not been
registered under the Securities Act and may not be offered or sold within the United States
or to, or for the account or benefit of, U.S. persons except in accordance with Regulation S
or pursuant to an exemption from the registration requirements of the Securities Act. Each
Purchaser severally represents and agrees that it has offered and sold the Offered
Securities, and will offer and sell the Offered Securities (i) as part of its distribution
at any time and (ii) otherwise until 40 days after the later of the commencement of the
offering and the Closing Date, only in accordance with Rule 903 or Rule 144A. Accordingly,
neither such Purchaser nor its affiliates, nor any persons acting on its or their behalf,
have engaged or will engage in any directed selling efforts with respect to the Offered
Securities, and such Purchaser, its affiliates and all persons acting on its or their behalf
have complied and will comply with the offering restrictions requirement of Regulation S.
Each Purchaser severally agrees that, at or prior to confirmation of sale of the Offered
Securities, other than a sale pursuant to Rule 144A, such Purchaser will have sent to each
distributor, dealer or person receiving a selling concession, fee or other remuneration that
purchases the Offered Securities from it during the restricted period a confirmation or
notice to substantially the following effect:

“The Securities covered hereby have not been registered under the
U.S. Securities Act of 1933 (the “Securities Act”) and may not be
offered or sold within the United States or to, or for the account
or benefit of, U.S. persons (i) as part of their distribution at any
time or (ii) otherwise until 40 days after the later of the date of
the commencement of the offering and the closing date, except in
either case in accordance with Regulation S (or Rule 144A if
available) under the Securities Act. Terms used above have the
meanings given to them by Regulation S.”

     Terms used in this subsection (b) have the meanings given to them by Regulation S.

     (c) Each Purchaser severally agrees that it and each of its affiliates has not entered
and will not enter into any contractual arrangement with respect to the distribution of the
Offered Securities except for any such arrangements with the other Purchasers or affiliates
of the other Purchasers or with the prior written consent of the Company and the Guarantors.

15

 

     (d) Each Purchaser severally agrees that it and each of its affiliates will not offer
or sell the Offered Securities in the United States by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c), including, but not
limited to (i) any advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, or (ii) any
seminar or meeting whose attendees have been invited by any general solicitation or general
advertising. Each Purchaser severally agrees, with respect to resales made in reliance on
Rule 144A of any of the Offered Securities, to deliver either with the confirmation of such
resale or otherwise prior to settlement of such resale a notice to the effect that the
resale of such Offered Securities has been made in reliance upon the exemption from the
registration requirements of the Securities Act provided by Rule 144A.

     (e) Each Purchaser, severally and not jointly, represents and warrants and agrees that:

     (i) In relation to each Member State of the European Economic Area which has
implemented the Prospectus Directive (as defined below) (each, a “Relevant Member
State”), with effect from and including the date on which the Prospectus Directive
is implemented in that Relevant Member State (the “Relevant Implementation Date”),
it has not made and will not make an offer of Offered Securities to the public in
that Relevant Member State, except that it may, with effect from and including the
Relevant Implementation Date, make an offer of Offered Securities to the public in
that Relevant Member State at any time: (A) to any legal entity which is a qualified
investor as defined in the Prospectus Directive; (B) to fewer than 100 or, if the
Relevant Member State has implemented the relevant provision of the 2010 PD Amending
Directive (as defined below), 150, natural or legal persons (other than qualified
investors as defined in the Prospectus Directive), as permitted under the Prospectus
Directive, subject to obtaining the prior consent of the Representatives for any
such offer; or (C) in any other circumstances falling within Article 3(2) of the
Prospectus Directive;

For the purposes of this provision, the expression an “offer of Offered Securities
to the public” in relation to any Offered Securities in any Relevant Member State
means the communication in any form and by any means of sufficient information on
the terms of the offer and the Offered Securities to be offered so as to enable an
investor to decide to purchase or subscribe for the Offered Securities, as the same
may be varied in that Member State by any measure implementing the Prospectus
Directive in that Member State, the expression “Prospectus Directive” means
Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending
Directive, to the extent implemented in the Relevant Member State), and includes any
relevant implementing measure in the Relevant Member State and the expression “2010
PD Amending Directive” means Directive 2010/73/EU.

16

 

     (ii) it has only communicated or caused to be communicated and will only
communicate or cause to be communicated an invitation or inducement to engage in
investment activity (within the meaning of Section 21 of the Financial Services and
Markets Act of 2000 (the “FSMA”)) received by it in connection with the issue or
sale of the Offered Securities in circumstances in which Section 21(1) of the FSMA
does not apply to the Company or the Guarantors; and

     (iii) it has complied and will comply with all applicable provisions of the
FSMA with respect to anything done by it in relation to the Offered Securities in,
from or otherwise involving the United Kingdom.

     (f) Each Purchaser acknowledges and agrees that the Company and the Guarantors and, for
purposes of the opinions to be delivered to the Purchasers pursuant to Sections 7(c) and
(d), counsel for the Company and the Guarantors and counsel for the Purchasers, may rely
upon the accuracy of the representations and warranties of the Purchasers, and compliance by
the Purchasers with their agreements, contained herein, and each Purchaser hereby consents
to such reliance.

     5. Certain Agreements of the Company and each Guarantor. The Company and each Guarantor agree
with the several Purchasers that:

     (a) Amendments and Supplements to Offering Circulars. The Company and the Guarantors
will promptly advise the Representatives of any proposal to amend or supplement the
Preliminary Offering Circular or the Final Offering Circular and will not effect such
amendment or supplementation without the Representatives’ consent. If, at any time prior to
the completion of the resale of the Offered Securities by the Purchasers, there occurs an
event or development as a result of which any document included in the Preliminary Offering
Circular or the Final Offering Circular, the General Disclosure Package or any Supplemental
Marketing Material, if republished immediately following such event or development, included
or would include an untrue statement of a material fact or omitted or would omit to state
any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, the Company and the Guarantors
promptly will notify the Representatives of such event and promptly will prepare and
furnish, at their own expense, to the Purchasers and the dealers and to any other dealers at
the request of the Representatives, an amendment or supplement which will correct such
statement or omission. Neither the Representatives’ consent to, nor the Purchasers’ delivery
to offerees or investors of, any such amendment or supplement shall constitute a waiver of
any of the conditions set forth in Section 7 hereof.

     (b) Furnishing of Offering Circulars. The Company and the Guarantors will furnish to
the Representatives copies of the Preliminary Offering Circular, each other document
comprising a part of the General Disclosure Package, the Final Offering Circular, all
amendments and supplements to such documents and each item of Supplemental Marketing
Material, in each case as soon as available and in such quantities as the Representatives
request.

17

 

     (c) Blue Sky Qualifications. The Company and the Guarantors will arrange for the
qualification or registration of the Offered Securities for sale and the determination of
their eligibility for investment under the laws of such jurisdictions in the United States
and Canada as the Representatives designate and will continue such qualifications or
registrations in effect so long as required for the resale of the Offered Securities by the
Purchasers, provided that the Company and the Guarantors will not be required to qualify as
a foreign corporation or other entity, to file a general consent to service of process in
any such jurisdiction, or subject themselves to taxation in any such jurisdiction where they
are not then so subject.

     (d) Reporting Requirements. For so long as the Offered Securities remain outstanding,
the Company and the Guarantors will furnish to the Representatives and, upon request, to
each of the other Purchasers, as soon as practicable after the end of each fiscal year, a
copy of the Company’s annual report to stockholders for such year; and the Company and the
Guarantors will furnish to the Representatives and, upon request, to each of the other
Purchasers (i) as soon as available, a copy of each report and any definitive proxy
statement of the Company filed with the Commission under the Exchange Act or mailed to
stockholders, and (ii) from time to time, such other information concerning the Company and
the Guarantors as the Representatives may reasonably request. However, so long as the
Company is subject to the reporting requirements of either Section 13 or Section 15(d) of
the Exchange Act and is timely filing reports with the Commission on its Electronic Data
Gathering, Analysis and Retrieval system (“EDGAR”), it is not required to furnish such
reports or statements to the Purchasers. At any time when the Company is not subject to
Section 13 or 15(d) of the Exchange Act, the Company and the Guarantors will promptly
furnish or cause to be furnished to the Representatives (and, upon request, to each of the
other Purchasers) and, upon request of holders and prospective purchasers of the Offered
Securities, to such holders and purchasers, copies of the information required to be
delivered to holders and prospective purchasers of the Offered Securities pursuant to Rule
144A(d)(4) (or any successor provision thereto) in order to permit compliance with Rule 144A
in connection with resales by such holders of the Offered Securities. The Company will pay
the expenses of printing and distributing to the Purchasers all such documents.

     (e) Transfer Restrictions. During the period of one year after the Closing Date, the
Company will, upon request, furnish to the Representatives, each of the other Purchasers and
any holder of Offered Securities a copy of the restrictions on transfer applicable to the
Offered Securities.

     (f) No Resales by Affiliates. During the period of one year after the Closing Date,
the Company will not, and will not permit any of its affiliates (as defined in Rule 144) to,
resell any of the Offered Securities that have been reacquired by any of them.

     (g) Investment Company. During the period of two years after the Closing Date or, if
earlier, until such time as the Offered Securities are no longer “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, neither the Company nor any
Guarantor will be or become, an open-end investment company, unit

18

 

investment trust or face-amount certificate company that is or is required to be
registered under Section 8 of the Investment Company Act.

     (h) Payment of Expenses. The Company and the Guarantors will pay all expenses
incidental to the performance of their respective obligations under this Agreement, the
Indenture and the Registration Rights Agreement, including but not limited to (i) the fees
and expenses of the Trustee and its professional advisers; (ii) all expenses in connection
with the execution, issue, authentication, packaging and initial delivery of the Offered
Securities and, as applicable, the Exchange Securities, the preparation and printing of this
Agreement, the Registration Rights Agreement, the Offered Securities, the Indenture, the
Preliminary Offering Circular, any other documents comprising any part of the General
Disclosure Package, the Final Offering Circular, all amendments and supplements thereto,
each item of Supplemental Marketing Material and any other document relating to the
issuance, offer, sale and delivery of the Offered Securities and, as applicable, the
Exchange Securities; (iii) the cost of any advertising approved by the Company in connection
with the issue of the Offered Securities; (iv) any expenses (including fees and
disbursements of counsel to the Purchasers) incurred in connection with qualification of the
Offered Securities or the Exchange Securities for sale under the laws of such jurisdictions
in the United States and Canada as the Representatives designate and the preparation and
printing of memoranda relating thereto; (v) any fees charged by investment rating agencies
for the rating of the Offered Securities or the Exchange Securities; and (vi) expenses
incurred in distributing the Preliminary Offering Circular, any other documents comprising
any part of the General Disclosure Package, the Final Offering Circular (including any
amendments and supplements thereto) and any Supplemental Marketing Material to the
Purchasers. The Company and the Guarantors will also pay or reimburse the Purchasers (to the
extent incurred by them) for costs and expenses of the Purchasers and the Company’s officers
and employees and any other expenses of the Purchasers and the Company and the Guarantors
relating to investor presentations on any “road show” in connection with the offering and
sale of the Offered Securities including, without limitation, any travel expenses of the
Company’s and the Guarantors’ officers and employees and any other expenses of the Company
and the Guarantors, provided, however, that the Purchasers will pay fifty percent of the
cost of any aircraft chartered in connection with the road show. For avoidance of doubt,
except as provided in clause (iv) above, the Purchasers shall be responsible for their own
counsel’s fees.

     (i) Use of Proceeds. The Company will use the net proceeds received in connection with
this offering in the manner described in the “Use of Proceeds” section of the General
Disclosure Package and the Final Offering Circular and, except as disclosed in the General
Disclosure Package and the Final Offering Circular, the Company does not intend to use any
of the proceeds from the sale of the Offered Securities hereunder to repay any outstanding
debt owed to any affiliate of any Purchaser.

     (j) Absence of Manipulation. In connection with this offering, until the
Representatives shall have notified the Company and the other Purchasers of the completion
of the resale of the Offered Securities, neither the Company, the Guarantors nor any of
their affiliates will, either alone or with one or more other persons, bid for or

19

 

purchase for any account in which it or any of its affiliates has a beneficial interest
any Offered Securities or attempt to induce any person to purchase any Offered Securities;
and neither they nor any of their affiliates will make bids or purchases for the purpose of
creating actual, or apparent, active trading in, or of raising the price of, the Offered
Securities.

     (k) Restriction on Sale of Securities. For a period of 60 days after the date hereof,
neither the Company nor any Guarantor will, directly or indirectly, offer, sell, issue,
contract to sell, pledge or otherwise dispose of with respect to any United States
dollar-denominated debt securities issued or guaranteed by the Company or such Guarantor and
having a maturity of more than one year from the date of issue, without the prior written
consent of Credit Suisse Securities (USA) LLC. Neither the Company nor any Guarantor will
at any time directly or indirectly, take any action referred to in the previous sentence
with respect to any securities under circumstances where such offer, sale, pledge, contract
or disposition would cause the exemption afforded by Section 4(2) of the Securities Act or
the safe harbor of Regulation S thereunder to cease to be applicable to the offer and sale
of the Offered Securities.

     6. Free Writing Communications.

     (a) Issuer Free Writing Communications. The Company and each Guarantor each represents
and agrees that, unless it obtains the prior consent of Credit Suisse Securities (USA) LLC,
and each Purchaser represents and agrees that, unless it obtains the prior consent of the
Company and Credit Suisse Securities (USA) LLC, it has not made and will not make any offer
relating to the Offered Securities that would constitute an Issuer Free Writing
Communication.

     (b) Term Sheets. The Company consents to the use by any Purchaser of a Free Writing
Communication that (i) contains only (A) information describing the preliminary terms of the
Offered Securities or their offering or (B) information that describes the final terms of
the Offered Securities or their offering and that is included in or is subsequently included
in the Final Offering Circular, including by means of a pricing term sheet in the form of
Exhibit A hereto, or (ii) does not contain any material information about the
Company or any Guarantor or their securities that was provided by or on behalf of the
Company or any Guarantor, it being understood and agreed that the Company and each Guarantor
shall not be responsible to any Purchaser for liability arising from any inaccuracy in such
Free Writing Communications referred to in clause (i) or (ii) as compared with the
information in the Preliminary Offering Circular, the Final Offering Circular or the General
Disclosure Package.

     7. Conditions of the Obligations of the Purchasers. The obligations of the several Purchasers
to purchase and pay for the Offered Securities will be subject to the accuracy of the
representations and warranties of the Company and the Guarantors herein (as though made on the
Closing Date), to the accuracy of the statements of officers of the Company and the Guarantors made
pursuant to the provisions hereof, to the performance by the Company and the Guarantors of their
obligations hereunder and to the following additional conditions precedent:

20

 

     (a) Accountants’ Comfort Letters. The Purchasers shall have received from Ernst &
Young LLP a letter, dated respectively, the date hereof and the Closing Date, in form and
substance satisfactory to the Purchasers concerning the financial information with respect
to the Company set forth in the General Disclosure Package and the Final Offering Circular.

     (b) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or event
involving a prospective change, in the condition (financial or otherwise), results of
operations, business, properties or prospects of the Company and its subsidiaries taken as a
whole which, in the judgment of the Representatives, is material and adverse and makes it
impractical or inadvisable to market the Offered Securities; (ii) any downgrading in the
rating of any debt securities of the Company or any Guarantor by any “nationally recognized
statistical rating organization” (as defined for purposes of Rule 436(g)), or any public
announcement that any such organization has under surveillance or review its rating of any
debt securities of the Company or any Guarantor (other than an announcement with positive
implications of a possible upgrading, and no implication of a possible downgrading, of such
rating) or any announcement that the Company or any Guarantor has been placed on negative
outlook; (iii) any change in U.S. or international financial, political or economic
conditions or currency exchange rates or exchange controls the effect of which is such as to
make it, in the judgment of the Representatives, impractical to market or to enforce
contracts for the sale of the Offered Securities, whether in the primary market or in
respect of dealings in the secondary market; (iv) any suspension or material limitation of
trading in securities generally on the New York Stock Exchange, or any setting of minimum or
maximum prices for trading on such exchange; (v) or any suspension of trading of any
securities of the Company or any Guarantor on any exchange or in the over-the-counter market
(other than in connection with the events described in clause (iv) above); (vi) any banking
moratorium declared by any U.S. federal or New York authorities; (vii) any major disruption
of settlements of securities, payment, or clearance services in the United States or any
other country where such securities are listed or (viii) any attack on, outbreak or
escalation of hostilities or act of terrorism involving the United States, any declaration
of war by Congress or any other national or international calamity or emergency if, in the
judgment of the Representatives, the effect of any such attack, outbreak, escalation, act,
declaration, calamity or emergency is such as to make it in the judgment of the
Representatives impractical or inadvisable to market the Offered Securities or to enforce
contracts for the sale of the Offered Securities.

     (c) Opinion of Counsel for Company. The Purchasers shall have received an opinion,
dated the Closing Date, of Vinson & Elkins L.L.P., counsel for the Company and the
Guarantors, in form and substance reasonably satisfactory to the Representatives,
substantially in the form attached hereto as Exhibit B.

     (d) Opinion of Counsel for Purchasers. The Purchasers shall have received from Baker
Botts L.L.P., counsel for the Purchasers, such opinion or opinions, dated the Closing Date,
with respect to such matters as the Representatives may reasonably require,

21

 

and the Company and the Guarantors shall have furnished to such counsel such documents
as they request for the purpose of enabling them to pass upon such matters.

     (e) Officers’ Certificate. The Purchasers shall have received certificates, dated the
Closing Date, of an executive officer of the Company and the Guarantors and a principal
financial or accounting officer of the Company and the Guarantors in which such officers
shall state that:

     (i) the representations, warranties and agreements of the Company and the
Guarantors in Section 2 hereof are true and correct on and as of the Closing Date,
and each of the Company and each Guarantor has complied with all its agreements
contained herein and satisfied all the conditions on its part to be performed or
satisfied hereunder at or prior to the Closing Date;

     (ii) they have carefully examined the General Disclosure Package and the Final
Offering Circular, and, in their opinion, (A) the Final Offering Circular, or any
amendment or supplement thereto, as of its date and as of the Closing Date, or (B)
the General Disclosure Package, as of the Applicable Time, did not and do not
contain any untrue statement of a material fact and did not and do not omit to state
a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading; and

     (iii) Since the respective dates as of which information is given in the
General Disclosure Package and the Final Offering Circular, except as disclosed in
the certificate, (1) there has been no material adverse change, nor any development
or event involving a prospective material adverse change, in the condition
(financial or otherwise), results of operations, business, properties or prospects
of the Company and its subsidiaries taken as a whole, except as set forth in the
General Disclosure Package; and (2) neither the Company nor any of its subsidiaries
has sustained any loss or interference with its business from fire, explosion, flood
or other calamity, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree which would have a Material Adverse
Effect otherwise than as set forth or contemplated in the General Disclosure
Package and the Final Offering Circular.

     (f) Registration Rights Agreement. On the Closing Date, the Purchasers shall have
received the Registration Rights Agreement executed by the Company and the Guarantors and
such agreement shall be in full force and effect.

     Documents described as being “in the agreed form” are documents which are in the forms which
have been initialed for the purpose of identification by Baker Botts L.L.P., copies of which are
held by the Company, the Guarantors and the Representatives, with such changes as the
Representatives may approve.

     The Company and the Guarantors will furnish the Purchasers with such conformed copies of such
opinions, certificates, letters and documents as the Purchasers reasonably request. The

22

 

Representatives may in their sole discretion waive on behalf of the Purchasers compliance with any
conditions to the obligations of the Purchasers hereunder.

     8. Indemnification and Contribution.

     (a) Indemnification of Purchasers. The Company and the Guarantors jointly and
severally will indemnify and hold harmless each Purchaser, its officers, employees, agents,
partners, members and directors, affiliates of any Purchaser who have, or who are alleged to
have, participated in the distribution of the Offered Securities as underwriters, and each
person, if any, who controls such Purchaser within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (each, an “Indemnified Party”), against any
and all losses, claims, damages or liabilities, joint or several, to which such Indemnified
Party may become subject, under the Securities Act, the Exchange Act, other Federal or state
statutory law or regulation or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Preliminary
Offering Circular or the Final Offering Circular, in each case as amended or supplemented,
or any Issuer Free Writing Communication (including without limitation, any Supplemental
Marketing Material), or arise out of or are based upon the omission or alleged omission of a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading and will reimburse each Indemnified
Party for any legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating, preparing or defending against any loss, claim, damage,
liability, action, litigation, investigation or proceeding whatsoever (whether or not such
Indemnified Party is a party thereto) whether threatened or commenced and in connection with
the enforcement of this provision with respect to any of the above as such expenses are
incurred; provided, however, that the Company and the Guarantors will not be liable in any
such case to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement in or omission or alleged
omission from any of such documents in reliance upon and in conformity with written
information furnished to the Company by any Purchaser through the Representatives
specifically for use therein, it being understood and agreed that the only such information
consists of the information described as such in subsection (b) below.

     (b) Indemnification of Company. Each Purchaser will severally and not jointly
indemnify and hold harmless each of the Company, the Guarantors, each of their respective
directors and each of their respective officers, employees, agents, partners, members and
each person, if any, who controls the Company or such Guarantor within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Purchaser
Indemnified Party”), against any and all losses, claims, damages or liabilities to which
such Purchaser Indemnified Party may become subject, under the Securities Act, the Exchange
Act, other Federal or state statutory law or regulation or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact contained
in the Preliminary Offering Circular or the Final Offering Circular, in each case as amended
or supplemented, or any Issuer Free Writing

23

 

Communication or arise out of or are based upon the omission or the alleged omission of
a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with written information
furnished to the Company by such Purchaser through the Representatives specifically for use
therein, and will reimburse any legal or other expenses reasonably incurred by such
Purchaser Indemnified Party in connection with investigating, preparing or defending against
any such loss, claim, damage, liability, action, litigation, investigation or proceeding
whatsoever (whether or not such Purchaser Indemnified Party is a party thereto) whether
threatened or commenced in connection with the enforcement of this provision with respect to
any of the above as such expenses are incurred, it being understood and agreed that the only
such information furnished by any Purchaser consists of the following information in the
Preliminary and Final Offering Circular furnished on behalf of each Purchaser: the third,
ninth and tenth paragraphs and the second sentence of the eighth paragraph under the caption
“Plan of Distribution”; provided, however, that the Purchasers shall not be liable for any
losses, claims, damages or liabilities arising out of or based upon the Company’s failure to
perform its obligations under Section 5(a) of this Agreement.

     (c) Actions against Parties; Notification. Promptly after receipt by an indemnified
party under this Section 8 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party of the commencement thereof; but
the failure to notify the indemnifying party shall not relieve it from any liability that it
may have under subsection (a) or (b) above except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and
provided further that the failure to notify the indemnifying party shall not relieve it from
any liability that it may have to an indemnified party otherwise than under subsection (a)
or (b) above. In case any such action is brought against any indemnified party and it
notifies the indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party under this
Section 8 for any legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened action in respect of which any indemnified party
is or could have been a party and indemnity could have been sought hereunder by such
indemnified party unless such settlement includes (i) an unconditional release of such
indemnified party from all liability on any claims that are the subject matter of such
action and (ii) does not include a statement as to or an admission of fault, culpability or
failure to act by or on behalf of any indemnified party.

24

 

     (d) Contribution. If the indemnification provided for in this Section 8 is unavailable
or insufficient to hold harmless an indemnified party under subsection (a) or (b) above,
then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities referred to in
subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Purchasers on the other from the
offering of the Offered Securities or (ii) if the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits referred to in clause (i) above but also the relative fault of the
Company and the Guarantors on the one hand and the Purchasers on the other in connection
with the statements or omissions which resulted in such losses, claims, damages or
liabilities as well as any other relevant equitable considerations. The relative benefits
received by the Company and the Guarantors on the one hand and the Purchasers on the other
shall be deemed to be in the same proportion as the total net proceeds from the offering
(before deducting expenses) received by the Company bear to the total discounts and
commissions received by the Purchasers from the Company under this Agreement. The relative
fault shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Company and the Guarantors or the Purchasers and
the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first sentence of
this subsection (d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any action
or claim which is the subject of this subsection (d). Notwithstanding the provisions of this
subsection (d), no Purchaser shall be required to contribute any amount in excess of the
amount by which the total price at which the Offered Securities purchased by it were resold
exceeds the amount of any damages which such Purchaser has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. The
Purchasers’ obligations in this subsection (d) to contribute are several in proportion to
their respective purchase obligations and not joint. The Company, the Guarantors and the
Purchasers agree that it would not be just and equitable if contribution pursuant to this
Section 8(d) were determined by pro rata allocation (even if the Purchasers were treated as
one entity for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to in this Section 8(d).

     9. Default of Purchasers. If any Purchaser or Purchasers default in their obligations to
purchase Offered Securities hereunder and the aggregate principal amount of Offered Securities that
such defaulting Purchaser or Purchasers agreed but failed to purchase does not exceed 10% of the
total principal amount of Offered Securities, the Representatives may make arrangements
satisfactory to the Company for the purchase of such Offered Securities by other persons, including
any of the Purchasers, but if no such arrangements are made by the Closing Date, the non-defaulting
Purchasers shall be obligated severally, in proportion to their respective commitments hereunder,
to purchase the Offered Securities that such defaulting Purchasers agreed but failed to purchase.
If any Purchaser or Purchasers so default and the aggregate principal amount of Offered Securities
with respect to which such default or defaults occur

25

 

exceeds 10% of the total principal amount of Offered Securities and arrangements satisfactory
to the Representatives and the Company for the purchase of such Offered Securities by other persons
are not made within 36 hours after such default, this Agreement will terminate without liability on
the part of any non-defaulting Purchaser or the Company, except as provided in Section 10. As used
in this Agreement, the term “Purchaser” includes any person substituted for a Purchaser under this
Section 9. Nothing herein will relieve a defaulting Purchaser from liability for its default.

     10. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company, the Guarantors or
their respective officers and of the several Purchasers set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation, or statement as to
the results thereof, made by or on behalf of any Purchaser, the Company, the Guarantors or any of
their respective representatives, officers or directors or any controlling person, and will survive
delivery of and payment for the Offered Securities. If this Agreement is terminated pursuant to
Section 9 or if for any reason the purchase of the Offered Securities by the Purchasers is not
consummated, the Company and the Guarantors shall remain responsible for the expenses to be paid or
reimbursed by it pursuant to Section 5 and the respective obligations of the Company, the
Guarantors and the Purchasers pursuant to Section 8 shall remain in effect. If the purchase of the
Offered Securities by the Purchasers is not consummated for any reason other than solely because of
the termination of this Agreement pursuant to Section 9 or the occurrence of any event specified in
clauses (iii), (iv), (vi), (vii) or (viii) of Section 7(b), the Company and the Guarantors will
reimburse the Purchasers for all out-of-pocket expenses (including fees and disbursements of
counsel) reasonably incurred by them in connection with the offering of the Offered Securities.

     11. Notices. All communications hereunder will be in writing and, if sent to the Purchasers
will be mailed, delivered or telegraphed and confirmed to the Purchasers, c/o Credit Suisse
Securities (USA) LLC, Eleven Madison Avenue, New York, N.Y. 10010-3629, Attention: LCD-IBD, or, if
sent to the Company or the Guarantors, will be mailed, delivered or telegraphed and confirmed to it
at Three Allen Center, 333 Clay Street, Suite 4620, Houston, Texas 77002, Attention: Bradley J.
Dodson; provided, however, that any notice to a Purchaser pursuant to Section 8 will be mailed,
delivered or telegraphed and confirmed to such Purchaser.

     12. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the controlling persons referred to in Section 8, and no
other person will have any right or obligation hereunder, except that holders of Offered Securities
shall be entitled to enforce the agreements for their benefit contained in the second and third
sentences of Section 5(b) hereof against the Company as if such holders were parties thereto.

     13. Representation of Purchasers. You will act for the several Purchasers in connection with
this purchase, and any action under this Agreement taken by you jointly or by the Representatives
will be binding upon all the Purchasers.

26

 

     14. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the
same Agreement.

     15. Absence of Fiduciary Relationship. The Company and the Guarantors acknowledge and agree
that:

     (a) No Other Relationship. The Representatives have been retained solely to act as
initial purchasers in connection with the initial purchase, offering and resale of the
Offered Securities and that no fiduciary, advisory or agency relationship between the
Company or the Guarantors and the Representatives has been created in respect of any of the
transactions contemplated by this Agreement or the Preliminary Offering Circular or the
Final Offering Circular, irrespective of whether any Representative has advised or is
advising the Company or the Guarantors on other matters;

     (b) Arm’s-Length Negotiations. The purchase price of the Offered Securities set forth
in this Agreement was established by the Company and the Guarantors following discussions
and arms-length negotiations with the Representatives and the Company and the Guarantors are
capable of evaluating and understanding and understand and accept the terms, risks and
conditions of the transactions contemplated by this Agreement;

     (c) Absence of Obligation to Disclose. The Company has and the Guarantors have been
advised that the Representatives and their affiliates are engaged in a broad range of
transactions which may involve interests that differ from those of the Company or the
Guarantors and that the Representatives have no obligation to disclose such interests and
transactions to Company or the Guarantors by virtue of any fiduciary, advisory or agency
relationship; and

     (d) Waiver. The Company and each Guarantor waive, to the fullest extent permitted by
law, any claims it may have against the Representatives for breach of fiduciary duty or
alleged breach of fiduciary duty and agree that the Representatives shall have no liability
(whether direct or indirect) to the Company or the Guarantors in respect of such a fiduciary
duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the
Company, including stockholders, employees or creditors of the Company or the Guarantors.

     16. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.

     The Company and the Guarantors hereby submit to the non-exclusive jurisdiction of the Federal
and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. The Company
and the Guarantors irrevocably and unconditionally waive any objection to the laying of venue of
any suit or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby in Federal and state courts in the Borough of Manhattan in The City of New York
and irrevocably and unconditionally waive and agree not to plead or claim in

27

 

any such court that any such suit or proceeding in any such court has been brought in an
inconvenient forum.

[Signature pages follows]

28

 

     If the foregoing is in accordance with the Purchasers’ understanding of our agreement,
kindly sign and return to us one of the counterparts hereof, whereupon it will become a binding
agreement between the Company, the Guarantors and the several Purchasers in accordance with its
terms.

	 	 	 	 	 
	 	Very truly yours,

OIL STATES INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Bradley J. Dodson
 	 
	 	 	Bradley J. Dodson 	 
	 	 	Senior Vice President, Chief Financial Officer and
Treasurer 	 

	 	 	 	 	 
	 	ACUTE TECHNOLOGICAL SERVICES, INC.

OIL STATES SKAGIT SMATCO, LLC

OIL STATES INDUSTRIES, INC.

 	 
	 	By:  	/s/ Bradley J. Dodson
 	 
	 	 	Bradley J. Dodson 	 
	 	 	Vice President and Assistant Treasurer 	 

	 	 	 	 	 
	 	CAPSTAR DRILLING, INC.

CAPSTAR DRILLING LP, L.L.C.

CAPSTAR HOLDING, L.L.C.

GENERAL MARINE LEASING, LLC

OIL STATES ENERGY SERVICES, INC.

SOONER HOLDING COMPANY

SOONER INC.

SOONER PIPE, L.L.C.

SPECIALTY RENTAL TOOLS & SUPPLY, L.L.C.

STINGER WELLHEAD PROTECTION, INCORPORATED

WELL TESTING, INC.

 	 
	 	By:  	/s/ Bradley J. Dodson
 	 
	 	 	Bradley J. Dodson 	 
	 	 	Vice President and Treasurer 	 
	 

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	PTI MARS HOLDCO1, LLC

 	 
	 	By:  	/s/ Bradley J. Dodson
 	 
	 	 	Bradley J. Dodson 	 
	 	 	Vice President, Chief Financial Officer and Treasurer 	 
	 
	 	CAPSTAR DRILLING GP, L.L.C.

By:  OIL STATES ENERGY SERVICES, INC.,

        its sole member

 	 
	 	By:  	/s/ Bradley J. Dodson
 	 
	 	 	Bradley J. Dodson 	 
	 	 	Vice President and Treasurer 	 
	 
	 	PTI GROUP USA LLC

OIL STATES MANAGEMENT, INC.

 	 
	 	By:  	/s/ Bradley J. Dodson
 	 
	 	 	Bradley J. Dodson 	 
	 	 	Vice President 	 

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	The foregoing Purchase Agreement
is hereby confirmed and accepted
as of the date first above written.

CREDIT SUISSE SECURITIES (USA) LLC

 	 	 
	By:  	/s/ Pablo Mercado
 	 	 
	 	Name:  	Pablo Mercado 	 	 
	 	Title:  	Director 	 	 
	 
	RBC CAPITAL MARKETS, LLC

 	 	 
	By:  	/s/ Shauvik Kundagrami
 	 	 
	 	Name:  	Shuavik Kundagrami 	 	 
	 	Title:  	Co-Head, Energy Cap. 	 	 
	 
	WELLS FARGO SECURITIES, LLC

 	 	 
	By:  	/s/ Bill J. Cvetkovski
 	 	 
	 	Name:  	Bill J. Cvetkovski 	 	 
	 	Title:  	Director: 	 	 
	 
	Acting on behalf of themselves
and as the Representatives of
the several Purchasers

 	 	 

[Signature Page to Purchase Agreement]

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Principal Amount of	 
	Purchaser	 	Offered Securities	 
	Credit Suisse Securities (USA) LLC 
	 	$	212,120,000	 
	RBC Capital Markets, LLC 
	 	$	151,515,000	 
	Wells Fargo Securities, LLC 
	 	$	109,090,000	 
	Jefferies & Company, Inc.
	 	$	24,242,000	 
	Tudor, Pickering, Holt & Co. Securities, Inc.
	 	$	24,242,000	 
	Raymond James & Associates, Inc.
	 	$	12,121,000	 
	Simmons & Company International 
	 	$	12,121,000	 
	Capital One Southcoast, Inc.
	 	$	6,061,000	 
	DnB NOR Markets, Inc.
	 	$	6,061,000	 
	Fifth Third Securities, Inc.
	 	$	6,061,000	 
	Howard Weil Incorporated 
	 	$	6,061,000	 
	HSBC Securities (USA) Inc.
	 	$	6,061,000	 
	nabSecurities, LLC 
	 	$	6,061,000	 
	Scotia Capital (USA) Inc.
	 	$	6,061,000	 
	SMBC Nikko Capital Markets Limited 
	 	$	6,061,000	 
	TD Securities (USA) LLC 
	 	$	6,061,000	 
	 
	 	 	 	 
	Total 
	 	$	600,000,000	 
	 
	 	 	 

Schedule A-1 

 

SCHEDULE B

Issuer Free Writing Communications (included in the General Disclosure Package)

     1. Final term sheet, dated May 26, 2011, a copy of which is attached hereto as Exhibit
A.

Schedule B-1 

 

SCHEDULE C

Guarantors

	 	 	 
	Name	 	Jurisdiction of Organization
	Acute Technological Services, Inc.

	 	Texas
	Capstar Drilling LP, L.L.C.

	 	Delaware
	Capstar Holding, L.L.C.

	 	Delaware
	Capstar Drilling, Inc.

	 	Texas
	Capstar Drilling GP, L.L.C.

	 	Delaware
	General Marine Leasing, LLC

	 	Delaware
	Oil States Energy Services, Inc.

	 	Delaware
	Oil States Management, Inc.

	 	Delaware
	Oil States Industries, Inc.

	 	Delaware
	Oil States Skagit SMATCO, LLC

	 	Delaware
	PTI Group USA LLC

	 	Delaware
	PTI Mars Holdco 1, LLC

	 	Delaware
	Sooner Inc.

	 	Delaware
	Sooner Pipe, L.L.C.

	 	Delaware
	Sooner Holding Company

	 	Delaware
	Specialty Rental Tools & Supply, L.L.C.

	 	Delaware
	Stinger Wellhead Protection, Incorporated

	 	Texas
	Well Testing, Inc.

	 	Delaware

Schedule C-1 

 

SCHEDULE D

List of Subsidiaries

	 	 	 
	Name	 	Jurisdiction of Organization
	 
	 	 
	892493 Alberta Inc.

	 	Alberta
	892489 Alberta Inc.

	 	Alberta
	3045843 Nova Scotia Company

	 	Nova Scotia
	AcuteCyberTwo LLC

	 	Texas
	Acute Technological Services, Inc.

	 	Texas
	ATSCyberone LLC

	 	Texas
	Buffalo Metis Catering Ltd.

	 	Alberta
	Capstar Drilling GP, L.L.C.

	 	Delaware
	Capstar Drilling LP, L.L.C.

	 	Delaware
	Capstar Drilling, Inc.

	 	Texas
	Capstar Holding, L.L.C.

	 	Delaware
	Christina Lake Enterprises Ltd.

	 	Alberta
	Crown Camp Services Ltd.

	 	Alberta
	CyberSolda IMCSS LTDA.

	 	Brazil
	Ek’Ati Services Ltd.

	 	Northwest Territories
	Elastomeric Actuators, Inc.

	 	Texas
	General Marine Construction, Inc.

	 	Louisiana
	General Marine Leasing, LLC

	 	Delaware
	General Marine Offshore Equipment, Inc.

	 	Louisiana
	MSL Nominees Pty Ltd.

	 	Australia
	Metis Catering Joint Venture Ltd.

	 	Alberta
	MSL Nominees (Karratha) Pty Ltd

	 	Australia
	MSL Nominees (Narrabi) Pty Ltd

	 	Australia
	Norwel Developments Limited

	 	Northwest Territories
	Oil States Industries do Brasil — Instalacoes Maritimas Ltda.

	 	Rio de Jeneiro, Brazil
	Oil States Energy Services, Inc.

	 	Delaware
	Oil States Energy Services, S.A. de C.V.

	 	Mexico
	Oil States Industries (Asia) PTE LTD

	 	Singapore
	Oil States Industries (Thailand) Ltd.

	 	Rayong, Thailand
	Oil States Industries (UK) Limited

	 	Scotland
	Oil States Industries Nigeria Limited

	 	Nigeria
	Oil States Industries, Inc.

	 	Delaware
	Oil States International Investments C.V.

	 	The Netherlands
	Oil States Klaper Limited

	 	England
	Oil States Management, Inc.

	 	Delaware
	Oil States Martec de Mexico

	 	Mexico
	Oil States MCS, Limited

	 	England
	Oil States Skagit SMATCO, LLC

	 	Delaware
	PTI Atlantic, Ltd.

	 	Newfoundland and Labrador
	PTI Camp Installations Ltd

	 	Alberta

Schedule D-1

 

 

	 	 	 

	PTI Group USA LLC

	 	Delaware
	PTI Group Inc.

	 	Alberta
	PTI Holding Company 1 Pty Ltd.

	 	Australia
	PTI Holding Company 2 Pty Ltd.

	 	Australia
	PTI International (Europe) BV

	 	The Netherlands
	PTI International Inc.

	 	Alberta
	PTI International Ltd.

	 	Alberta
	PTI Mars Coöperatief 1 U.A.

	 	Netherlands
	PTI Mars Coöperatief 2 U.A.

	 	Netherlands
	PTI Mars Coöperatief 3 U.A.

	 	Netherlands
	PTI Mars Holdco 1, LLC

	 	Delaware
	PTI Mars Holdco 2, LLC

	 	Delaware
	PTI Mars Holdco 3, LLC

	 	Delaware
	PTI Mars Holdco 4, LLC

	 	Delaware
	PTI Noble Structures Inc.

	 	Alberta
	PTI Premium Camp Services Ltd.

	 	Alberta
	PTI Remote Site Services USA Inc.

	 	Alaska
	PTI Travco Modular Structures Ltd.

	 	Alberta
	Quality Oilfield Services (2001), Ltd.

	 	Barbados
	Sooner Holding Company

	 	Delaware
	Sooner Inc.

	 	Delaware
	Sooner Pipe & Supply Nigeria Limited

	 	Nigeria
	Sooner Pipe & Supply Venezuela S.A.

	 	Venezuela
	Sooner Pipe, L.L.C.

	 	Delaware
	Specialty Rental Tools & Supply, L.L.C.

	 	Delaware
	Stinger Mexicana S.A. de C.V.

	 	Tamaulipas, Mexico
	Stinger Wellhead International, Inc.

	 	Commonwealth of the Bahamas
	Stinger Wellhead Protection (Canada) Incorporated

	 	Alberta
	Stinger Wellhead Protection, Incorporated

	 	Texas
	The Karratha Property Trust

	 	Australia
	The MAC Linen Services Pty Limited

	 	Australia
	The Mac Middlemount Property Trust

	 	Australia
	The Mac Middlemount Leisure Trust

	 	Australia
	The Mac Muswelbrook Property Trust

	 	Australia
	The Mac Wandoan Property Trust

	 	Australia
	The Narrabi Property Trust

	 	Australia
	The MAC Services Group Ltd.

	 	Australia
	Well Testing, Inc.

	 	Delaware

Schedule D-2

 

 

Exhibit A

Pricing Term Sheet

Oil States International, Inc.

$600,000,000 6.500% Senior Notes due 2019

Pricing Term Sheet

	 	 	 

	Issuer:

	 	Oil States International, Inc.
	Guarantors:

	 	All existing material domestic subsidiaries
and certain future subsidiaries
	Security Description:

	 	6.500% Senior Notes due 2019
	Face:

	 	$600,000,000
	Maturity:

	 	June 1, 2019
	Coupon:

	 	6.500%
	Offering Price:

	 	100.000%
	Yield to Maturity:

	 	6.500%
	Spread to Treasury:

	 	386 basis points
	Benchmark:

	 	3.125% UST due May 15, 2019
	Interest Payment Dates:

	 	June 1 and December 1
	Commencing:

	 	December 1, 2011
	Record Dates:

	 	May 15 and November 15
	Equity Clawback

	 	35% before June 1, 2014 at 106.500%
	Optional Redemption:

	 	Callable, on or after the following dates,
and at the following prices:

	 	 	 	 	 
	Date	 	Price
	June 1, 2014

	 	104.875 	%
	June 1, 2015

	 	103.250	%
	June 1, 2016

	 	101.625	%
	June 1, 2017 and thereafter

	 	100.000	%

	 	 	 

	Make-Whole:

	 	T+50 until June 1, 2014
	Trade Date:

	 	May 26, 2011
	Settlement Date:

	 	June 1, 2011 (T+3)
	CUSIP:

	 	678026 AC9 144A / U6785Y AA8 Reg S
	ISIN:

	 	US678026AC90 144A / USU6785YAA83 Reg S
	Minimum Allocations:

	 	$2,000
	Increments:

	 	$1,000
	Ratings (1):

	 	Ba3 / BB
	Joint Book-Running Managers:

	 	Credit Suisse Securities (USA) LLC
	 

	 	RBC Capital Markets, LLC
	 

	 	Wells Fargo Securities, LLC
	 
	 	 
	Senior Co-Managers:

	 	Jefferies & Company, Inc.
	 

	 	Raymond James & Associates, Inc.
	 

	 	Simmons & Company International
	 

	 	Tudor, Pickering, Holt & Co. Securities, Inc.
	 
	 	 
	Co-Managers:

	 	Capital One Southcoast, Inc.

 

 

	 	 	 

	 

	 	DnB NOR Markets, Inc.
	 

	 	Fifth Third Securities, Inc.
	 

	 	Howard Weil Incorporated
	 

	 	HSBC Securities (USA) Inc.
	 

	 	nabSecurities, LLC
	 

	 	Scotia Capital (USA) Inc.
	 

	 	SMBC Nikko Capital Markets Limited
	 

	 	TD Securities (USA) LLC

 

			
	(1)	 	These securities ratings have been provided by Moody’s and S&P. Neither of these ratings is a
recommendation to buy, sell or hold these securities. Each rating may be subject to revision or
withdrawal at any time, and should be evaluated independently of any other rating.

This communication is for informational purposes only and does not constitute an offer to sell, or
a solicitation of an offer to buy any security. This communication is not intended to be a
confirmation as required under Rule 10b-10 of the Securities Exchange Act of 1934. A formal
confirmation will be delivered to you separately. This notice shall not constitute an offer to
sell or a solicitation of an offer to buy, nor shall there be any sale of the notes in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful. The notes will be offered
and sold only to qualified institutional buyers in the United States in reliance on Rule 144A under
the Securities Act of 1933, as amended (the Securities Act), and to certain non-U.S. persons in
offshore transactions in reliance on Regulation S under the Securities Act. The notes have not been
registered under the Securities Act or any state securities laws, and may not be offered or sold in
the United States or to U.S. persons absent registration or an applicable exemption from the
registration requirements.

 

 

Exhibit B

Form of Opinion of Vinson & Elkins L.L.P.

     (a) Each of the Company and each Guarantor is validly existing and in good standing as a
corporation or other business entity under the laws of its jurisdiction of incorporation,
organization or formation, as the case may be, with full power and authority (corporate and other)
necessary to own or lease its properties and to conduct its business, in each case as described in
the General Disclosure Package and the Final Offering Circular in all material respects. Each of
the Company and each Guarantor is duly registered or qualified to do business as a foreign
corporation or other business entity, as the case may be, in good standing under the laws of each
jurisdiction set forth opposite its name on Exhibit A to such opinion.

     (b) Each of the Company and each Guarantor has all requisite corporate, limited liability
company, or limited partnership power and authority to execute, deliver and perform its obligations
under the Purchase Agreement, the Indenture, the Offered Securities and the Exchange Securities to
which it is a party and to consummate the transactions contemplated thereby. The Purchase
Agreement has been duly executed and delivered by the Company.

     (c) The Indenture has been duly and validly authorized, executed and delivered by the Company
and each of the Guarantors and, assuming the due authorization, execution and delivery thereof by
the Trustee, constitutes the valid and legally binding agreement of the Company and each of the
Guarantors, enforceable against them in accordance with its terms, except that the enforcement
thereof may be subject to the Enforceability Exceptions.

     (d) The Offered Securities have been duly and validly authorized and executed by the Company
and, when the Offered Securities are duly executed, issued and delivered by the Company and, when
authenticated in accordance with the provisions of the Indenture and delivered to and paid for by
the Purchasers pursuant to the Purchase Agreement on the Closing Date (assuming the due
authorization, execution and delivery of the Indenture by the Trustee and due authentication and
delivery of the Offered Securities by the Trustee in accordance with the Indenture), such Offered
Securities will constitute the valid and legally binding obligations of the Company, entitled to
the benefits of the Indenture, and enforceable against the Company in accordance with their terms,
subject to the Enforceability Exceptions.

     (e) The Guarantee endorsed on the Offered Securities by each Guarantor has been duly and
validly authorized and executed by such Guarantor and, when the Offered Securities are delivered to
and paid for by the Purchasers pursuant to the Purchase Agreement on the Closing Date (assuming the
due authorization, execution and delivery of the Indenture by the Trustee and due authentication
and delivery of the Offered Securities by the Trustee in accordance with the Indenture), the
Guarantee of each Guarantor endorsed thereon will constitute valid and legally binding obligations
of such Guarantor, entitled to the benefits of the Indenture, and enforceable in accordance with
its terms, subject to the Enforceability Exceptions.

     (f) The Registration Rights Agreement has been duly authorized, executed and delivered by the
Company and the Guarantors and, assuming the due authorization, execution and delivery thereof by
the Purchasers, constitutes the valid and legally binding obligations of

 

 

the Company and the Guarantors, enforceable in accordance with their terms, subject to the
Enforceability Exceptions and any rights to indemnity or contribution thereunder may be limited by
federal and state securities laws and public policy considerations.

     (g) No consent, approval, authorization, or order of, or filing or registration with, any
person (including any governmental agency or body or any court) is required for the execution,
delivery and performance of the Purchase Agreement by the Company and the Guarantors, the
consummation of the transactions contemplated by the Purchase Agreement, the Indenture and the
Registration Rights Agreement in connection with the offering, issuance and sale of the Offered
Securities and the Guarantees by the Company and the Guarantors, and the application of the
proceeds from the sale of the Offered Securities by the Company as described under “Use of
Proceeds” in the General Disclosure Package and the Final Offering Circular, except for, (i) if
required, the order of the Commission declaring effective the Exchange Offer Registration Statement
or, if required, the Shelf Registration Statement (each as defined in the Registration Rights
Agreement), (ii) if required, the qualification of the Indenture under the Trust Indenture Act in
connection with the issuance of the Exchange Notes, (iii) such as have previously been obtained and
(iv) applicable federal, state or foreign securities laws in connection with the purchase and sale
of the Offered Securities by the Purchasers as to which such counsel need express no opinion other
than the opinion provided in paragraph (j) below.

     (h) The execution, delivery and performance of the Indenture, the Offered Securities, the
Registration Rights Agreement and the Purchase Agreement by the Company and the Guarantors, the
issuance and sale of the Offered Securities and the Guarantees by the Company and the Guarantors
and compliance with the terms and provisions thereof, and the application of the proceeds from the
sale of the Offered Securities by the Company as described under “Use of Proceeds” in the General
Disclosure Package and the Final Offering Circular will not (i) result in a breach or violation of
any of the terms or provisions of, or constitute a default or a Debt Repayment Triggering Event
under, or result in the imposition of any lien, charge or encumbrance upon any property or assets
of the Company or its subsidiaries pursuant to, any instrument to which the Company is a party and
which is filed as an exhibit and set forth on the exhibit list to the Company’s Annual Report on
Form 10-K for the year ended December 31, 2010 or any other report filed by the Company with the
Commission under Section 13(a) of the Exchange Act after the date of such Annual Report on Form
10-K and through the dates of the General Disclosure Package and the Final Offering Circular, which
reports are incorporated by reference in the General Disclosure Package and the Final Offering
Circular; (ii) result in any violation of the provisions of the charter or by-laws (or similar
organizational documents) of the Company or any of the Guarantors; or (iii) result in any violation
of any statute or any judgment, order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Company or any of its subsidiaries or any of their properties or
assets, except in the case of clauses (i) and (iii) above for such conflicts, breaches, defaults,
violations or liens that, in the aggregate, would not reasonably be expected to have a Material
Adverse Effect, and except that with respect to clause (iii) above, such counsel need express no
opinion as to any state or federal securities or Blue Sky laws or federal or state antifraud laws,
rules or regulations, except for the opinion set forth in (j) below.

     (i) Neither the Company nor any Guarantor is, after giving effect to the offering and sale of
the Offered Securities and the application of the proceeds thereof as described in the

 

 

General Disclosure Package and the Final Offering Circular, will be, an “investment company” within
the meaning of such term under the Investment Company Act.

     (j) Assuming the accuracy of the representations, warranties and agreements of the Company,
the Guarantors and the Purchasers contained in the Purchase Agreement, (A) no registration under
the Securities Act of the Offered Securities is required in connection with the sale of the Offered
Securities to the Purchasers or in connection with the initial resale of the Offered Securities by
the Purchasers, in each case as contemplated by the Purchase Agreement, the General Disclosure
Package and the Final Offering Circular, and (B) prior to the commencement of the Exchange Offer or
the effectiveness of any registration statement prepared in connection with the Company’s
obligations under the Registration Rights Agreement, the Indenture is not required to be qualified
under the Trust Indenture Act.

     (k) The statements in the General Disclosure Package and the Final Offering Circular under the
captions “Description of the Notes,” “Description of Other Indebtedness,” and “Certain United
States Federal Income Tax Consequences”, insofar as such statements summarize legal matters,
agreements, documents or proceedings discussed therein, have been reviewed by us and are accurate
in all material respects.

     In addition, such counsel shall also state that it has participated in conferences with
representatives of the Company and with representatives of its independent accountants at which
conferences the contents of the General Disclosure Package and the Final Offering Circular and
related matters were discussed. Although such counsel has not undertaken to determine
independently, and does not assume any responsibility for, or express any opinion regarding the
accuracy, completeness or fairness of the statements contained in the General Disclosure Package or
the Final Offering Circular (except as expressly provided above), based upon the participation
described above, nothing has come to the attention of such counsel to cause such counsel to believe
that the General Disclosure Package, as of the Applicable Time, or that the Final Offering
Circular, as of its date or at the Closing Date, contained or contains any untrue statement of a
material fact or omitted or omits to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading. In making
the foregoing statement, such counsel need not express any comment or belief with respect to the
financial statements and notes and related schedules and other financial and accounting data
contained in or omitted from the General Disclosure Package or the Final Offering Circular.exv10w24

Exhibit 10.24

Amendment Agreement

Party A: Beijing Beike Yongfeng Technologies Development Co., Ltd.

	Address: No.7, Fengxian Middle Road, Yongfeng Industry Base, Haidian District, Beijing

Legal Representative: Lu Xiaoming

Telephone: 58717521

Party B: RAE-KLH (Beijing) Technologies Co., Ltd.

	Address: RAE-KLH Building, No.7, Fengxian Middle Road, Yongfeng Industry Base, Haidian District,
Beijing, China 

Legal Representative: Chen Yizhi

Telephone: 58858788

Party A and Party B are herein referred to as the “Parties” collectively and a “Party”
respectively.

Whereas:

	(a)	 	Party A and Party B entered into the Contract for Cooperative Development of the Project in
Beijing Academy of Science and Technology Morden Manufacturing Technologies Park (II) (the
“Cooperative Development Contract”) on July 10, 2003, which provides that Party A shall provide
Party B a plot of land with an area of 11.9 Mu to invest and develop the real estate project. Party
B has invested in and developed the project of 3# Building (the “Project”) in Beijing Academy of
Science and Technology Morden Manufacturing Technologies Park and has borne all the development
costs and apportionment expenses for the Project.
	 
	(b)	 	Party A has delivered to Party B two written statements (the “Written Undertaking”)
respectively on February 22, 2005 and September 13, 2006 to undertake to complete the procedures
for division of the state-owned land use rights for and on behalf of Party B in accordance with the
laws of China, so as to assist Party B in obtaining the land use rights over the land for the
Project and the ownership certificate for the building under the Project.
	 
	(c)	 	Party A has obtained the state-owned land use right certificate (Jing. Hai. Guo. Yong. (2004)
No.3156) in its own name for the land under the Project and the ownership certificate (Jing. Fang.
Quan. Zheng. Hai. Qi. Zi, No. 0060967) in its own name for the building under the Project.
	 
	(d)	 	The Parties has further negotiated about the matters regarding the Project, agreeing to revise
the relevant terms of the Cooperative Development Contract and reach the unanimous agreement on the
relevant matters.

Therefore, the Parties agree to revise the Cooperative Development Contract as

1

 

follows:

Article 1 Amendment to the Cooperative Development Contract

	1.1	 	The Parties confirm that Party A and Party B have performed all of its obligations under the
Cooperative Development Contract to the extent permitted by Chinese laws and policies, but due to
the failure to accomplish the purpose of the Cooperative Development Contract, the Parties reached
the unanimous agreement to amend the Cooperative Development Contract.
	 
	1.2	 	Since Party B has paid all of the costs and expenses for the development of the Project in
accordance with the Cooperative Development Contract, including but not limited to the expenses and
fees for municipal public facilities, land exploration and survey, planning and design,
construction work, environmental assessment, design of traffic arrangement, construction of road,
landscaping, examination and approval, and registration and has used the Project up to the present.
After taking into consideration comprehensively all relevant factors, the Parties agree that, Party
A shall pay the economic compensation of RMB 55,000,000 to Party B, as Party A’s compensation to
Party B for its handover of the building under the Project and payment of the aforesaid costs and
expenses.

Article 2 Payment of Economic Compensation

	2.1	 	The economic compensation under Article 1.2 hereof shall be paid through the following method:

	 	(a)	 	Within 30 days of the effective date of this Agreement, Party A shall pay to Party B the first
instalment of the economic compensation in the amount of RMB 30,000,000; and
	 
	 	(b)	 	The remaining compensation, in the amount of RMB 25,000,000 shall be paid up by Party A in two
installments within two years after the effective date of this Agreement, among which, the first
installment, in the amount of RMB20,000,00 shall be paid up by February 28, 2012, and the second
installment, in the amount of RMB5,000,000 shall be paid by February 28, 2013.

	2.2	 	The foregoing amount shall be paid into Party B’s following bank account:

Company Name: RAE-KLH (Beijing) Technologies Co., Ltd.

Opening Bank: Shangdi Branch, China Minsheng Bank

Account Number: 0110014170024784

Article 3 Compensation and Exemption; Tax and Expenses

	3.1	 	From the effective date of this Agreement, Party A will own the land and the over-ground
building. Party B shall bear all the obligations and undertake all the liabilities of any adverse
effect arising out of or caused by matters attributable to Party B to the rights
of Party A under this Agreement before the effectiveness of this Agreement. Except for the rights
and obligations provided under this

2

 

	 	 	Agreement or otherwise agreed by the Parties, neither Party A nor any of its director or employee
shall require Party B to bear any obligation or liability of any nature on the Project in any name
or for any reason, including any potential and future claim, requirement, appeal and request made
by any third party.
	 
	3.2	 	The Parties confirm that they will undertake the taxes and fees arising from performance of
this Agreement respectively in accordance with the relevant laws.

Article 4 Liabilities for Breach

	4.1	 	If a Party is in breach of any provision of this Agreement and delays the performance of its
obligation, such Party will be deemed as being in default under this Agreement. The liabilities of
the defaulting party shall include the following: if the party delays to perform its obligation,
the defaulting party shall pay the liquidated damages to the non-defaulting party at the rate of
0.5% of the overdue payment for each overdue day, and if the payment is overdue for more than 10
days, the non-defaulting party is entitled to terminate this Agreement and the defaulting party
shall pay 20% of the economic compensation under this Agreement to non-defaulting party as
liquidate damages. If Party A is in breach of this Agreement, Party B will not return the economic
compensation and the liquidated damages for overdue payment already paid by Party A; if Party B is
in breach of this Agreement, Party B shall promptly return the economic compensation already paid
by Party A. If the amount of the liquidated damages (including that for overdue interests) is not
sufficient to cover the economic losses incurred by the non-defaulting party, the non-defaulting
party shall still have the right to claim compensation against the defaulting party.
	 
	4.2	 	Notwithstanding any provision to the contrary herein, any Party shall not be responsible to
indemnify the other Party for any indirect or consequential losses incurred by the other Party as a
result of such Party’s performance or non-performing of this Agreement.

Article 5 Dispute Resolution

	5.1	 	This Agreement shall be governed by and constructed in accordance with the laws of the PRC.
	 
	5.2	 	Any dispute between the Parties arising from or in connection with the execution and
performance of this Agreement shall be settled by the Parties through consultation. If any dispute
fails to be settled within thirty (30) days after either Party requires the dispute to be settled
through consultation by giving the other Party a notice, such dispute shall be submitted to the
competent People’s Court where the Project locates.

Article 6 Miscellaneous

	6.1	 	Subject to the laws of the PRC, any Party’s failure of exercising or delay in exercising any of
its rights under this Agreement shall not operate as a waiver of such right, and a single or
partial exercise of any right shall not prevent a

3

 

	 	 	subsequent further exercise of that or of any other right.
	 
	6.2	 	This Agreement shall take effect upon the execution by the authorized representatives of the
Parties, and shall supersede any and all provisions which are not consistent with any provision in
this Agreement in the Cooperative Development Contract or any prior written undertakings. This
Agreement shall not be revised unless agreed in written by the Parties’ respective authorized
representatives. The provisions in the Cooperative Development Contract shall be immediately
amended upon the effective date of this Agreement. Except for the rights and obligations agreed in
this Agreement, the Parties shall not request the other Party to perform any obligations under the
Cooperative Development Contract.
	 
	6.3	 	If, pursuant to any law or public policy, any provision of this Agreement shall be held
invalid, illegal or unenforceable, so long as the economic and legal nature of the transaction
hereunder is not affected in a manner that is materially adverse to any Party, the remaining
provisions of this Agreement shall continue in full force and effect. Once any provision of this
Agreement shall be held invalid, illegal or unenforceable, the Parties shall consult in good faith
with each other to revise this Agreement in a manner acceptable to the Parties so that the
transaction hereunder will be completed in a manner that reflects the original intent of the
Parties to the fullest extent.
	 
	6.4	 	This Agreement shall be executed in two (2) copies, which shall be equally authentic. Each Party
shall hold one (1) copy of this Agreement.

4

 

Amendment Agreement

(signature page)

Party A: Beijing Beike Yongfeng Technologies Development Co., Ltd.

	 	 	 	 

	Authorized Representative:

	 	/s/ Xie Wei	 
	 

	 	Name: Xie Wei	 
	 

	 	Title:   General Manager	 

Party B: RAE-KLH (Beijing) Technologies Co., Ltd.

	 	 	 	 

	Authorized Representative:

	 	/s/
Yongbiao Qian	 
	 

	 	Name: Yongbiao Qian	 
	 

	 	Title:   General Manager	 

Date: May 26, 2011

Place: Yongfeng industrial park

5

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