Document:

exv10w2

Exhibit 10.2

September 1, 2010

Key Energy Services, Inc.

Key Electric Wireline Services, LLC

Key Energy Pressure Pumping Services, LLC

c/o Key Energy Services, Inc.

1301 McKinney, Suite 1800

Houston, Texas 77010

Attention: General Counsel

Dear Ladies and Gentlemen:

     Reference is hereby made to the Asset Purchase Agreement by and among Portofino Acquisition
Company (now known as Universal Pressure Pumping, Inc.), as Buyer, Patterson-UTI Energy, Inc., as
Buyer Parent, and Key Energy Pressure Pumping Services, LLC and Key Electric Wireline Services,
LLC, as Sellers, and Key Energy Services, Inc., as Seller Parent, dated as of July 2, 2010 (the
“Agreement”), relating to the acquisition of the assets of Sellers’ pressure pumping and wireline
businesses. This letter sets forth each of our agreements to certain modifications to the
Agreement, and unless expressly modified pursuant to this letter agreement, all other provisions of
the Agreement remain in full force and effect. Capitalized terms used in this letter which are
defined in the Agreement shall have the meaning set forth in the Agreement.

     Attached hereto as Exhibit A is a proposal dated August 30, 2010 from Environmental Resources
Management (“ERM”) to Buyer that sets forth proposed Phase II ESA invasive testing and analysis to
be performed at the Transferred Leased Real Properties (the “Subject Properties”) listed on Table 1
thereto. By this letter, (i) Sellers and Seller Parent consent to such testing and analysis at the
Subject Properties, and (ii) Buyer and Buyer Parent acknowledge and agree that no Environmental
Defect Notice shall be issued regarding any other Transferred Real Property and, prior to Closing,
that no Phase II ESA shall be performed with respect to any other Transferred Real Property;
provided, that this clause (ii) shall not apply to any Transferred Real Property affected by an
Environmental Condition coming into existence after the time that the Phase I ESA for such property
was conducted pursuant to Section 6.1(b) and prior to Closing and not resulting from the Phase II
ESA work.

     Any Environmental Condition identified as a result of the Phase II ESA work approved hereby
shall be treated as and shall constitute a Potentially Material Environmental Condition for all
purposes of the Agreement, notwithstanding the definition of that term contained in the Agreement.

 

 

     Within ten days after delivery to Sellers of the last of the reports with respect to such
Phase II ESA work, the parties shall work in good faith to agree on the scope of work necessary to
Remediate any Environmental Conditions pursuant to Section 6.2, including an estimate of the
reasonable costs required to conduct such Remediation. The following standards will be used in
determining the scope of such Remediation: (i) for the Subject Properties located in Texas, the
Tier 1 protective concentration levels (Remedy Standard A) for commercial/industrial uses provided
pursuant to the Texas Risk Reduction Program, 30 T.A.C. Chapter 350, and (ii) for the Subject
Property located in Arkansas, the risk-based remediation standards for industrial use approved by
the Arkansas Department of Environmental Quality pursuant to Title 8 of the Arkansas Code and/or
Arkansas Pollution Control and Ecology Commission Regulation 23. Notwithstanding any continuing
efforts to complete any agreed upon Remediation work at the Subject Properties, the parties shall
promptly proceed to the Closing of the transactions contemplated by the Agreement provided that the
other conditions to Closing set forth in the Agreement have been satisfied.

     The parties hereto also agree that any Environmental Defect Notice delivered within five days
after the delivery to Buyer of the last of the reports with respect to such Phase II ESA work shall
be deemed to have been delivered on or before the Environmental Defect Notice Date.

     Separately, Disclosure Schedule 4.22 shall be modified to incorporate by reference the Phase I
ESAs and Phase II ESAs prepared by ERM and, such reports shall not be treated as supplements
pursuant to Section 6.6.

     Buyer and Buyer Parent agree that Buyer shall pay the first $2,000,000 of the aggregate
reasonable and actual costs incurred by Buyer or Seller to perform any Remedial Action on the
Subject Properties (including any properties that are removed from among the Purchased Assets
pursuant to Section 6.2(c)) as agreed to pursuant hereto, notwithstanding the provisions of Section
13.3(a) of the Agreement; provided, that such Remedial Action with respect to a Subject Property
that either Buyer or Seller elects to remove from the Purchased Assets pursuant to Section 6.2(c)
shall have been initiated within 90 days after the Closing Date. Payments shall be made by Buyer
as such costs are incurred and invoiced to Buyer.

     The parties hereto agree that Sellers’ Environmental Liabilities arising from or related to
any Environmental Condition identified pursuant to the Phase II ESA work contemplated herein or any
Remedial Actions in response thereto shall cease upon the earlier of (i) confirmation that the
commercial/industrial standards identified above have been achieved, or (ii) five years from the
Closing Date. Further, the Phase II ESA work shall not give rise to any indemnity obligations for
Sellers or Seller Parent with respect to the Subject Properties other than pursuant to Section
13.3(a) of the Agreement as modified by the immediately preceding paragraph hereof.

     The parties agree that the leased properties in Goliad, Texas shall be retained by Sellers,
shall not be a Transferred Leased Real Property, and any lease associated therewith shall not be a
Transferred Lease.

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          Please indicate your agreement to the foregoing by signing and dating below.

	 	 	 	 	 
	 	Very truly yours,

Patterson-UTI Energy, Inc.

 	 
	 	By:  	/s/ JOHN E. VOLLMER III
 	 
	 	 	John E. Vollmer III 	 
	 	 	Senior Vice President-Corporate Development,
Chief Financial Officer and Treasurer 	 
	 
	 	Universal Pressure Pumping, Inc.

 	 
	 	By:  	/s/ JOHN E. VOLLMER III
 	 
	 	 	John E. Vollmer III 	 
	 	 	Senior Vice President-Corporate Development,
Chief Financial Officer and Treasurer 	 
	 

Agreed to this 1st day of September, 2010

	 	 	 	 	 

	Key Energy Services, Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ NEWTON W. WILSON III
 

Newton W. Wilson III
	 	 
	 

	 	Senior Vice President and Chief Operating Officer	 	 
	 
	 	 	 	 
	Key Energy Pressure Pumping Services, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ NEWTON W. WILSON III
 

Newton W. Wilson III
	 	 
	 

	 	President	 	 
	 
	 	 	 	 
	Key Electric Wireline Services, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ NEWTON W. WILSON III
 

Newton W. Wilson III
	 	 
	 

	 	President	 	 

-3-exv10w3

Exhibit 10.3

October 1, 2010

Key Energy Pressure Pumping Services, LLC

Key Electric Wireline Services, LLC

Key Energy Services, Inc.

c/o Key Energy Services, Inc.

1301 McKinney, Suite 1800

Houston, Texas 77010

Attention: General Counsel

Dear Ladies and Gentlemen:

     Reference is hereby made to the Asset Purchase Agreement by and among Universal Pressure
Pumping, Inc. (formerly known as Portofino Acquisition Company), as Buyer, Patterson-UTI Energy,
Inc, as Buyer Parent, Key Energy Pressure Pumping Services, LLC and Key Electric Wireline Services,
LLC, as Sellers, and Key Energy Services, Inc., as Seller Parent, dated as of July 2, 2010 (as
modified by that certain Assignment and Assumption Agreement dated October 1, 2010, by and between
Universal Pressure Pumping, Inc., and Universal Wireline, Inc., and as otherwise amended, modified
or supplemented through the date hereof the “Purchase Agreement”). This letter sets forth
each of our agreements to certain modifications to the terms of the Purchase Agreement, and unless
expressly modified pursuant to this letter agreement, all other provisions of the Purchase
Agreement remain in full force and effect. Capitalized terms used and not otherwise defined herein
shall have the meanings assigned to them in the Purchase Agreement.

     The parties agree that the defined term “Buyer Lease Agreement” in Section 1.1 of the
Purchase Agreement is hereby deleted in its entirety and replaced with the following definition:

     “Buyer Lease Agreement” means (i) a written lease agreement containing
the material terms identified in Exhibit C to this Agreement between Buyer,
as tenant, and an Affiliate of Sellers, as landlord, relating to the Tioga, North
Dakota service facility used in the Wireline Business and (ii) the written sublease
agreement between Buyer, as sublessee, and an Affiliate of Sellers, as sublessor,
relating to the Midland, Texas office facility used in the Purchased Business.

     The parties agree that the defined term “Effective Time” in Section 1.1 of the
Purchase Agreement is hereby deleted in its entirety and replaced with the following definition:

     “Effective Time” means 12:01 a.m. on the Closing Date.

     The parties agree that Exhibit A to this letter agreement and incorporated herein by
reference sets forth the amount of funds that will be paid by Buyer to Sellers on the Closing Date,
including the determination thereof.

     The parties agree that the following schedules contained in the Seller Disclosure Schedules to
the Purchase Agreement are hereby amended and restated in their entirety, except

 

 

for Schedule 4.19 for which only the severance obligations portion of such schedule is hereby
amended and restated, which amended and restated schedules are attached to this letter agreement as
Exhibit B:

	 	 	 

	2.1(a)-1

	 	Pressure Pumping Equipment and Machinery
	2.1(a)-2

	 	Wireline Equipment and Machinery
	2.1(b)-1

	 	Pressure Pumping Assumed Contracts
	2.1(b)-2

	 	Wireline Assumed Contracts
	2.1(c)-1

	 	Pressure Pumping Vehicles
	2.1(c)-2

	 	Wireline Vehicles
	2.1(e)

	 	Transferred Leased Real Property and Transferred Leases
	2.1(f)

	 	Transferred Intellectual Property
	2.1(g)

	 	Transferred Permits
	4.19

	 	Business Employees — Severance Obligations

     The parties agree that all amounts listed on the amended and restated severance obligations
portion of Schedule 4.19, included as part of Exhibit B hereto, shall, for the
purposes of Section 8.4(j) of the Purchase Agreement, be subject to, and apply towards,
Sellers’ and Buyer’s respective obligation to pay such retention benefits, including the limitation
on total payments by Buyer not to exceed $900,000.

     This letter agreement (i) shall be governed by the law of the state of Texas, without regard
to the conflicts of law principles of such state, (ii) may only be amended by a writing signed by
all parties hereto, and (iii) may be executed in one or more counterparts, all of which shall be
considered one and the same document.

[Signature Page Follows]

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     Please indicate your agreement to the foregoing by signing and dating below.

	 	 	 	 	 
	 	Very truly yours,

Universal Pressure Pumping, Inc.

 	 
	 	By:  	/s/ JOHN E. VOLLMER
 	 
	 	 	John E. Vollmer 	 
	 	 	Senior Vice President — Corporate
Development, Chief Financial Officer and
Treasurer 	 

	 	 	 	 	 
	 	Universal Wireline, Inc.

 	 
	 	By:  	/s/ JOHN E. VOLLMER
 	 
	 	 	John E. Vollmer 	 
	 	 	Senior Vice President — Corporate
Development, Chief Financial Officer and
Treasurer 	 

	 	 	 	 	 
	 	Patterson-UTI Energy, Inc.

 	 
	 	By:  	/s/ JOHN E. VOLLMER
 	 
	 	 	John E. Vollmer 	 
	 	 	Senior Vice President — Corporate
Development, Chief Financial Officer and
Treasurer 	 
	 

 

 

	 	 	 	 	 
	 	Agreed to this 1st day of October, 2010.

KEY ENERGY PRESSURE PUMPING SERVICES, LLC

 	 
	 	By:  	/s/ J. MARSHALL DODSON
 	 
	 	 	J. Marshall Dodson 	 
	 	 	Vice President and Treasurer 	 
	 
	 	KEY ELECTRIC WIRELINE SERVICES, LLC

 	 
	 	By:  	/s/ J. MARSHALL DODSON
 	 
	 	 	J. Marshall Dodson 	 
	 	 	Vice President and Treasurer 	 
	 
	 	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ J. MARSHALL DODSON
 	 
	 	 	J. Marshall Dodson 	 
	 	 	Vice President and Treasurer

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