Document:

Exhibit

Exhibit 10.1

EXCHANGE AGREEMENT
This EXCHANGE AGREEMENT (this “Agreement”), is made and entered into as of March 9, 2020, by and between Basic Energy Services, Inc., a Delaware corporation (the “Company”), and Ascribe III Investments LLC, a Delaware limited liability company (the “Noteholder”).
RECITALS
WHEREAS, the Company has issued and outstanding $300,000,000 principal amount of the 10.75% Senior Secured Notes due 2023 (the “Notes”), issued pursuant to that certain Indenture, dated as of October 2, 2018 (the “Base Indenture”) by and among the Company, the guarantors party thereto and UMB Bank, National Association, as trustee and collateral agent (the “Trustee”), as supplemented by the First Supplemental Indenture, dated as of August 22, 2019, by and among the Company, the guarantors party thereto and the Trustee (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”);
WHEREAS, the Noteholder is the Beneficial Owner of the aggregate principal amount of Notes set forth on Schedule A attached hereto (the “Exchange Notes”);
WHEREAS, the Parties have determined to enter into this Agreement, pursuant to which, among other things, the Noteholder shall exchange the Exchange Notes with the Company in exchange for 118,805 shares of CS Equivalent Stock (“CSE Shares”) (the “Exchange Transaction”), subject to the terms and conditions set forth in this Agreement;
WHEREAS, the Company intends to use the Exchange Notes as a portion of the consideration under the NexTier PSA, and, in order to facilitate the transfer and delivery of the Exchange Notes to NexTier, the Noteholder shall transfer and deliver to NexTier the Exchange Notes, it being understood that, in order to effectuate such transfer and delivery, the Noteholder shall instruct the Depository Trust Company to effect the transfer of the Exchange Notes directly from the Noteholder to NexTier by book entry transfer, in accordance with the applicable procedures of the Depository Trust Company, for and on account of the Company; and
WHEREAS, in connection with the Exchange Transaction, the Company and the Noteholder are entering into this Agreement, the NexTier PSA, the Bridge Note and the Stockholders Agreement (each, an “Additional Agreement” and, together, the “Additional Agreements”) in accordance herewith.
NOW, THEREFORE, for and in consideration of the mutual promises contained herein, the benefits to be derived by each Party hereunder, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Noteholder agree as follows:
AGREEMENT
1.    Exchange of Notes.  Subject to the terms and conditions set forth in this Agreement, at the Closing the Noteholder shall exchange the Exchange Notes with the Company for (i) 118,805 CSE Shares (the “Exchange Transaction Shares”) and (ii) an amount in cash equal to $1,466,792.71 

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(representing the accrued (but unpaid) interest, from and including the most recent date to which interest has been paid pursuant to the terms of the Notes and the Indenture but excluding the date of the Closing, on the aggregate principal amount of Exchange Notes) (the “Company Cash Payment”). At the Closing, the Noteholder, for and on account of the Company, shall deliver the Exchange Notes to NexTier in the manner set forth below in this Section 1, free and clear of all mortgages, liens, pledges, security interests, charges, claims, restrictions and encumbrances of any nature whatsoever (collectively, “Liens”). In order to effectuate the transfer and delivery of the Exchange Notes to NexTier, the Noteholder shall instruct the Depository Trust Company to effect the transfer of the Exchange Notes directly from the Noteholder to NexTier by book entry transfer, in accordance with the applicable procedures of the Depository Trust Company, for and on account of the Company.
2.    Closing and Closing Deliveries.  The closing of the Exchange Transaction (the “Closing”) shall take place at the offices of Weil, Gotshal & Manges LLP, 200 Crescent Court, Suite 300, Dallas, Texas 75201, at 7:45 a.m., local time, on the date of this Agreement, subject to the filing and acceptance by the Delaware Secretary of State of the Certificate under the General Corporation Law of the State of Delaware, simultaneous with the closing of the transactions under the NexTier PSA; provided that, for the avoidance of doubt, no party shall be obligated to attend the Closing in person.  A party may choose to participate in the Closing by email or other electronic means.
At the Closing:
(a)    the Company shall:
(i)    deliver to the Noteholder’s custodian designated on Schedule B attached hereto by means of book-entry transfer or delivery of irrevocable instructions to the Transfer Agent to issue certificated securities, 118,805 CSE Shares registered in the name of the Noteholder;
(ii)    pay to the Noteholder, by wire transfer of immediately available funds to such account or accounts as designated on Schedule B attached hereto, (i) the Company Cash Payment and (ii) the Make-Whole Fee;
(iii)    pay to the Noteholder, the Closing Fee, pursuant to and in accordance with the terms set forth in the Bridge Note;
(iv)    deliver to the Noteholder a counterpart of the Stockholders Agreement dated as of the date hereof between the Company and Noteholder (the “Stockholders Agreement”) duly executed by the Company; 
(v)    deliver to the Noteholder (A) executed resignations of each of Timothy H. Day and Samuel E. Langford, and (B) and written evidence that the Company has taken all necessary action to increase the number of directors on the Board from six directors to seven directors and appoint each of Lawrence First, Derek Jeong and Ross Solomon as directors of the Company and members of Class I, Class II and Class III of the Board, respectively; and
(vi)    deliver to the Noteholder a counterpart of the Senior Secured Promissory Note dated the date hereof between the Noteholder, as payee, and the Company, as obligor (the “Bridge Note”) duly executed by the Company.

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(b)    the Noteholder shall:
(i)    transfer and deliver the Exchange Notes to the Company, it being acknowledged and agreed that, in order to facilitate the transfer and delivery of the Exchange Notes to NexTier in accordance with Section 2.3 of the NexTier PSA, the Noteholder shall cooperate with the Company in order to effect a book entry transfer, in accordance with the applicable procedures of the Depository Trust Company, of the Exchange Notes directly to NexTier, for and on account of the Company, and shall deliver all other documents and instruments reasonably requested by the Company to effect the transfer of the Exchange Notes to NexTier in accordance with Section 2.3 of the NexTier PSA;
(ii)    deliver to the Company a counterpart of the Stockholders Agreement duly executed by the Noteholder;
(iii)    deliver to the Company a counterpart of the Bridge Note duly executed by the Noteholder; and
(iv)    deliver to the Company, by wire transfer of immediately available funds to such account or accounts as designated on Schedule C attached hereto, an amount equal to $15,000,000 pursuant to the Bridge Note.
3.    Representations and Warranties of the Noteholder.  The Noteholder represents and warrants to the Company as follows:
(a)    Title to Notes; Common Stock Ownership.  (i) The Noteholder is the sole Beneficial Owner of the Exchange Notes, the Exchange Notes are held by the Noteholder free and clear of all Liens, and neither the Noteholder nor any Affiliate of the Noteholder owns or holds beneficially or of record any Notes (or any rights or interests of any nature whatsoever in or with respect to any Notes) other than the Exchange Notes, and (ii) the Noteholder is the sole Beneficial Owner of the number of shares of Common Stock set forth on Schedule A (“Owned Shares”), the Owned Shares are held by the Noteholder free and clear of all Liens and neither the Noteholder nor any Affiliate of the Noteholder owns or holds beneficially or of record any shares of Common Stock (or any rights or interests of any nature whatsoever in or with respect to any Common Stock) other than Owned Shares.  Other than this Agreement and the NexTier PSA, neither the Noteholder nor any Affiliate of the Noteholder is party to or bound by any contract, option or other arrangement or understanding with respect to the purchase, sale, delivery, transfer, gift, pledge, hypothecation, encumbrance, assignment or other disposition or acquisition of (including by operation of law) (i) any Notes (or any rights or interests of any nature whatsoever in or with respect to any Notes), or as to voting, agreeing or consenting (or abstaining therefrom) with respect to any amendment to or waiver of any terms of, or taking any action whatsoever with respect to, the Notes and/or the Indenture or (ii) any shares of Common Stock (or any rights or interests of any nature whatsoever in or with respect to any shares of Common Stock), or as to voting or acting by written consent (or abstaining therefrom) with respect to any matter relating to any shares of Common Stock (whether or not a Beneficial Owner thereof as of the date hereof).
(b)    Existence; Authority; Binding Effect.  The Noteholder is duly incorporated or organized, validly existing and in good standing under the laws of its jurisdiction of organization.  The Noteholder has full legal capacity, power and authority to execute and deliver this Agreement, the Additional Agreements, and any other agreements or instruments executed or to be executed by it in connection herewith and to consummate the transactions contemplated herein and therein.  

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The execution, delivery and performance by the Noteholder of this Agreement, the Additional Agreements and any other agreements or instruments executed or to be executed and delivered by the Noteholder in connection herewith, and the consummation of the transactions contemplated hereby and thereby by the Noteholder, have been duly and validly authorized and approved by the board of directors or other governing body of the Noteholder, and no other actions on the part of the Noteholder are necessary in respect thereof.  This Agreement is, and each of the Additional Agreements and the other agreements and instruments executed hereunder by the Noteholder in connection herewith will be, a valid and binding obligation of the Noteholder, in each case, to the extent party thereto, enforceable in accordance with its respective terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws relating to or affecting enforcement of creditors’ rights generally and except as enforcement thereof is subject to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law).
(c)    No Violation.  Neither the execution and delivery of this Agreement or any of the Additional Agreements or any of the other agreements or instruments executed and delivered by the Noteholder in connection herewith, nor the performance of any obligations hereunder or thereunder by the Noteholder, including the exchange of the Exchange Notes pursuant to this Agreement, will conflict with, or result in any violation of, or default (with or without notice or lapse of time, or both) under or result in the creation of any Lien upon the Exchange Notes held by the Noteholder under (i) the organizational documents of the Noteholder, including any limited liability company agreement, certificate of incorporation or bylaws or similar agreement; (ii) any law, order, writ, injunction or decree applicable to the Noteholder or by which any property or asset of the Noteholder is bound or affected; or (iii) any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise, or other instrument or obligation to which the Noteholder is a party or by which the Noteholder or any property or asset of the Noteholder is bound or affected, except, in the case of clauses (ii) and (iii), for any such conflicts, violations, breaches, defaults, events, losses, payments, cancellations, encumbrances, or other occurrences that are not, individually or in the aggregate, reasonably expected to prevent or materially delay the Closing or the performance by the Noteholder of any of its obligations under this Agreement or any Additional Agreement to which it is or will be a party.
(d)    Consents and Approvals.  No consent, approval, order or authorization of, or registration, declaration, filing with or notice to, any governmental entity or any other Person is required to be obtained, made or given by the Noteholder in connection with the execution and delivery of this Agreement or any Additional Agreements or other agreements or instruments executed and delivered hereunder or thereunder by the Noteholder, or the performance of any obligations hereunder or thereunder by the Noteholder, including the exchange of the Exchange Notes, except for such filings by the Noteholder with the SEC as are appropriate in connection with or required by the federal and state securities laws and rules and regulations thereunder in connection with the transactions contemplated hereby.
(e)    Transfer Restrictions.  The offer and sale of the Exchange Transaction Shares to be issued pursuant to this Agreement are intended to be exempt from registration pursuant to Section 4(a)(2) of the Securities Act.  The Noteholder acknowledges and agrees that (i) the Exchange Transaction Shares are “restricted securities” (as such term is commonly used with regard to federal and state securities laws), (ii) the Exchange Transaction Shares may not be offered or sold except pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of 

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the Securities Act, and otherwise in accordance with applicable state securities laws, (iii) the Exchange Transaction Shares, upon issuance, will be subject to the terms and conditions of the Stockholders Agreement, and (iv) in connection with any transfer of the Exchange Transaction Shares, other than pursuant to an effective registration statement, the Company may require the transferor thereof to provide to the Company documents or other support, including, but not limited to, certain representations by the Noteholder, reasonably requested by the Company and a customary opinion of counsel experienced in such matters and reasonably acceptable to the Company.  The Noteholder acknowledges and agrees that the Exchange Transaction Shares will contain legends in accordance with the Certificate (and customary corresponding instructions and stop-transfer orders will be made in the stock transfer records, electronically or otherwise, for shares in book-entry form).
(f)    Ability to Bear Risk and Sophistication.  The Noteholder understands that the transactions contemplated hereby and ownership and investment in the Exchange Transaction Shares, involves substantial risk. The Noteholder has such knowledge and experience in financial and business matters, and its financial situation is such, that it is capable of evaluating the merits and risks of its participation in the transactions contemplated hereby and of bearing the economic risk of its investment in the Exchange Transaction Shares (including the complete loss of such investment).
(g)    Qualified Institutional Buyer.  The Noteholder is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act, and is acquiring the Exchange Transaction Shares for investment purposes and solely for its account and not with a view to further distribution or resale in violation of the Securities Act.
(h)    No Brokers or Finders.  The Noteholder has not incurred nor become liable for any broker’s commission or finder’s fee relating to the transactions contemplated by this Agreement.
(i)    Advice.  The Noteholder has completed its own independent inquiry and has relied fully upon the advice of its own legal counsel, accountant, financial and other advisors in determining the legal, tax, financial and other consequences of this Agreement and the transactions contemplated hereby and the suitability of this Agreement and the transactions contemplated hereby for the Noteholder and its particular circumstances.
(j)    No Other Representations or Warranties.  Except for the representations and warranties contained in Section 4 hereof, neither the Company nor any Affiliate or Representative of the Company nor any other Person on behalf of the Company, its Affiliates and Representatives has made or is making any representation or warranty of any kind or nature whatsoever, oral or written, express or implied with respect to the Company, this Agreement, the Additional Agreements or the transactions contemplated hereby or thereby and the Noteholder disclaims any reliance on any representation or warranty of the Company or any Affiliate or Representative of the Company except for the representations and warranties expressly set forth in Section 4 hereof.
4.    Representations and Warranties of the Company.  The Company represents and warrants to the Noteholder as follows:
(a)    Existence; Authority; Binding Effect.  The Company and each subsidiary of the Company is (i) duly incorporated or organized, validly existing and in good standing under the laws of its jurisdiction of organization and has full power and authority to own, lease and operate its 

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properties and to carry on its business as it is now being conducted and (ii) duly qualified or licensed as a foreign corporation to do business, and is in good standing, in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its business makes such qualification or licensing necessary, except for any such failures to be so qualified or licensed and in good standing as that, individually or in the aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect (as defined below) on the Company.  The execution and delivery of this Agreement, the Additional Agreements and any other agreements or instruments executed or to be executed and delivered in connection herewith, and the consummation of the transactions contemplated hereby and thereby, by the Company, including the issuance and delivery of the Exchange Transaction Shares to the Noteholder pursuant to this Agreement, have been duly and validly authorized and approved by the board of directors of the Company and no other actions on the part of the Company are necessary in respect thereof.  This Agreement is, and each of the Additional Agreements and the other agreements and instruments executed hereunder by the Company in connection herewith will be, a valid and binding obligation of the Company, enforceable in accordance with its respective terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws relating to or affecting enforcement of creditors’ rights generally and except as enforcement thereof is subject to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law).
(b)    No Violation.  Neither the execution, delivery or performance of this Agreement, each of the Additional Agreements and each of the other agreements or instruments executed and delivered by the Company in connection herewith, will conflict with, or result in any violation of, or default (with or without notice or lapse of time, or both) under or give rise to a right of termination, cancellation, modification or acceleration of any obligation or to a loss of a benefit under, or result in the creation of any Lien upon any of the properties or assets of the Company or any of its subsidiaries under (i) the certificate of incorporation, bylaws or similar organizational documents of the Company or any of its subsidiaries; (ii) any law, order, writ, injunction or decree applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected; or (iii) any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise, or other instrument or obligation to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries or any property or asset of the Company or any of its subsidiaries is bound or affected, except, in the case of clauses (ii) and (iii), for any such conflicts, violations, breaches, defaults, events, losses, payments, cancellations, encumbrances, or other occurrences that are not, individually or in the aggregate, reasonably expected to (A) have a material adverse effect on the assets, liabilities, condition (financial or otherwise), business or results of operations of the Company and its subsidiaries taken as a whole, or (B) prevent or materially delay the performance by the Company of any of its obligations under this Agreement or any Additional Agreement to which it is or will be a party (collectively, (A) and (B), a “Material Adverse Effect”).
(c)    Consents and Approvals.  No consent, approval, order or authorization of, or registration, declaration, filing with or notice to, any governmental entity or any other Person is required to be obtained, made or given by the Company or any subsidiary of the Company in connection with the execution and delivery of this Agreement or any Additional Agreements or other agreements or instruments executed and delivered hereunder by the Company, or the performance of any obligations hereunder or thereunder by the Company, except for (i) the filing of the Certificate with the Delaware Secretary of State, (ii) approval of the board of directors of the Company, which approval has been obtained, (iii) consent required pursuant to the Credit Facility, which consent is 

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set forth in the First Amendment to Credit Facility, and (iv) such filings by the Company with the SEC as are appropriate in connection with or required by the federal and state securities laws and rules and regulations thereunder in connection with the transactions contemplated hereby.
(d)    Capitalization.
(i)    As of the date of this Agreement, (A) the authorized capital stock of the Company consists of 80,000,000 shares of Common Stock, par value $0.01 per share, and 5,000,000 shares of preferred stock, par value $0.01 per share; (B) (x) 24,936,864 shares of Common Stock are issued and outstanding and (y) no shares of preferred stock of the Company are issued and outstanding; and (C) all outstanding shares of Common Stock have been duly authorized and validly issued and are fully paid and nonassessable and have been issued in compliance with all applicable preemptive, participation, rights of first refusal and other similar rights.
(ii)    Other than the Exchange Transaction Shares pursuant to this Agreement and the Stockholders Agreement and other than the shares of Common Stock issuable pursuant to options and other rights granted under the Company’s Management Incentive Plan, Non-Employee Director Incentive Plan and 2019 Long Term Incentive Plan, each as may be amended from time to time, there are no securities, options, warrants, calls, pre-emptive exchange, conversion, purchase or subscription rights, or other rights, agreements, arrangements or commitments of any kind, contingent or otherwise, that could require the Company to issue, sell or otherwise cause to become outstanding, any shares of capital stock or other equity or debt interest in the Company or require the Company to grant or enter into any such option, warrant, call, subscription, conversion, purchase or other right, agreement, arrangement or commitment, and no authorization has been given therefor. There are no commitments or agreements of any kind to which the Company or any subsidiary is bound obligating the Company or any subsidiary to either (x) repurchase, redeem or otherwise acquire any shares of the Company’s capital stock or any of the Notes (other than to the extent required by the Indenture) or (y) other than pursuant to the terms of, and options and other awards granted under, the Company’s Management Incentive Plan, Non-Employee Director Incentive Plan and 2019 Long Term Incentive Plan, accelerate the vesting or exercisability of any shares of capital stock or other equity interest in the Company as a result of the transactions contemplated by this Agreement or any Additional Agreements, either alone or upon the occurrence of any additional subsequent events.
(e)    Issuance of the Exchange Transaction Shares.  Upon issuance in accordance herewith, the Exchange Transaction Shares issuable hereunder will be duly authorized, validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under applicable federal and state securities laws and under the Additional Agreements or any Liens created or imposed by the Noteholder.
(f)    Offering.  Subject to the accuracy of the Noteholder’s representations and warranties in Section 3(e), (f), (g), and (i) hereof, the offer, exchange, purchase and issuance of the Exchange Transaction Shares to the Noteholder constitute transactions exempt from the registration requirements of Section 5 of the Securities Act and will be issued in compliance with all applicable federal and state securities laws.
(g)    No Solicitation.  No form of general solicitation or advertising (within the meaning of Regulation D under the Securities Act) has been or will be used by the Company or any of its Representatives in connection with the offer or sale of any of the Exchange Transaction 

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Shares, including, without limitation, articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.
(h)    Litigation.  There is no pending action, suit, claim, inquiry, investigation, audit or proceeding by or before any governmental authority, or any arbitration, mediation or other similar proceeding (each of the foregoing, a “Proceeding”), and to the knowledge of the Company, there is no Proceeding threatened against the Company or any of its subsidiaries, that seeks to prevent, hinder, modify, delay or challenge the transactions contemplated hereby or any action taken or to be taken pursuant hereto.
(i)    SEC Documents.  The Company has filed and furnished all required reports, schedules, forms, certifications, prospectuses, and registration, and other statements with the SEC since January 1, 2019 (collectively and together with all documents filed on a voluntary basis on Form 8-K, and in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “SEC Documents”).  As of their respective effective dates and as of their respective SEC filing dates, the SEC Documents complied in all material respects with the requirements of the Exchange Act, the Securities Act and the Sarbanes-Oxley Act of 2002, as the case may be, applicable to such SEC Documents, and none of the SEC Documents as of such respective dates contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Except for (v) liabilities and obligations reflected or reserved against in the consolidated balance sheet of the Company at September 30, 2019 or the notes thereto, (w) liabilities and obligations arising under this Agreement and the Additional Agreements and costs and expenses (including fees and expenses of legal counsel and financial advisors) incurred in connection with the negotiation thereof and evaluation of alternatives to the transactions contemplated by this Agreement, (x) liabilities and obligations incurred by the Company and its subsidiaries in the ordinary course of business since September 30, 2019, (y) liabilities and obligations not required by GAAP to be accrued or disclosed on the financial statements of the Company and its subsidiaries and which would not (individually or in the aggregate) reasonably be expected to have a Material Adverse Effect and (z) other liabilities and obligations which (individually or in the aggregate) are not material, the Company and its subsidiaries have no liabilities or obligations of any kind, character, description or nature whatsoever, whether known or unknown.
(j)    The Company is not and has not been during the applicable period specified in Section 897(c)(1)(A)(ii) of the Internal Revenue Code of 1986, as amended (the “Code”), a “United States real property holding corporation” within the meaning of Section 897(c)(2) of the Code.
(k)    No Other Representations or Warranties.  Except for the representations and warranties contained in Section 3 hereof, neither the Noteholder nor any Affiliate or Representative of the Noteholder nor any other Person on behalf of the Noteholder, its Affiliates and Representatives has made or is making any representation or warranty of any kind or nature whatsoever, oral or written, express or implied with respect to the Noteholder, this Agreement, the Additional Agreements or the transactions contemplated hereby or thereby and the Company (on behalf of itself and each of its subsidiaries) disclaims any reliance on any representation or warranty of the Noteholder or any Affiliate or Representative of the Noteholder except for the representations and warranties expressly set forth in Section 3 hereof.

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5.    Covenants of the Company and of the Noteholder.  
(a)    Press Release.  The Company and the Noteholder agree that the Company shall issue a press release, in form and substance reasonably acceptable to the Company and the Noteholder, announcing the Exchange Transaction.
(b)    Payment of Expenses.  The Company shall pay or cause to be paid the (i) the Company’s fees and expenses incurred in connection with the Exchange Transaction, and (ii) all reasonable and documented fees and expenses incurred by the Noteholder in connection with the Exchange Transaction and the transactions contemplated by the NexTier PSA, including the fees and expenses of its advisors, counsel, and accountants.
(c)    Make-Whole Payment.  If the Noteholder is required to pay NexTier the Make-Whole Payment pursuant to Section 7.1 of the NexTier PSA, the Company shall promptly pay to the Noteholder the amount of the Make-Whole Payment paid by Noteholder to NexTier (the “Make-Whole Reimbursement Amount”). The Make-Whole Reimbursement Amount shall be paid (i) in cash (x) to the extent the Company has available cash as determined by an Independent Committee and (y) subject to satisfaction of the “Payment Conditions” (as defined in the Credit Facility) or (ii) to the extent the Company is unable to pay the full Make-Whole Reimbursement Amount in cash pursuant to clause (i), in Additional Notes, which Additional Notes shall be valued at the average closing price for the Notes for the 10 Business Days preceding the “Redemption Date” (as defined in the NexTier PSA) on which sales of the Notes occur (provided the Additional Notes shall not be valued at greater than the principal amount of the Additional Notes).
6.    Indemnification.  
(a)    Indemnification Obligation.  From and after the Closing, (i) the Company agrees to indemnify and hold harmless the Noteholder and its Representatives from and against any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, attorneys’ fees, expenses and disbursements of any kind (“Losses”) which may be imposed upon, incurred by or asserted against the Noteholder or its Representatives in any manner relating to or arising out of any breach of any representation, warranty, covenant or agreement by the Company contained in this Agreement and (ii) the Noteholder agrees to indemnify and hold harmless the Company and its Representatives, from and against any Losses which may be imposed upon, incurred by or asserted against the Company or its Representatives in any manner relating to or arising out of any breach of any representation, warranty, covenant or agreement by the Noteholder contained in this Agreement (collectively, the “Indemnification Obligation”). Notwithstanding any other provision of this Agreement or any other agreement entered into in connection with the transactions contemplated hereby, the Company agrees that the Noteholder’s sole covenant, agreement or undertaking with respect to the Exchange Notes under Section 1 and Section 2(b)(i) of this Agreement is to assign and deliver the Exchange Notes to NexTier free and clear of all Liens created by, through or under the Noteholder and the Noteholder shall have no liability or obligation with respect to or under Section 1 and Section 2(b)(i) of this Agreement (including any liability or obligation to indemnify or hold harmless the Company and its Representatives under clause (ii) of the preceding sentence) arising out of or relating to any acts or omissions by, or the status of, or any facts pertaining to, the Company or NexTier.
(b)    Indemnification Procedure.  All claims for indemnification by one or more Parties or Representatives entitled to be indemnified hereunder (each, an “Indemnitee” and 

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collectively, the “Indemnitee”) by one or more Parties hereto (each, an “Indemnitor” and collectively, the “Indemnitor”), shall be asserted and resolved as follows:
(i)    Promptly after receipt by an Indemnitee of notice from a third party of a threatened or filed complaint or the threatened or actual commencement of any audit, investigation, action or proceeding (a “Third Party Claim”) with respect to which such Indemnitee may be entitled to indemnification hereunder, such Indemnitee shall provide written notification to the Indemnitor, but in any event not later than 30 calendar days after receipt of such notice of such Third Party Claim; provided, however, that the failure to so notify the Indemnitor shall relieve the Indemnitor from liability under this Agreement with respect to such claim only if, and only to the extent that, such failure to notify the Indemnitor results in (i) the forfeiture by the Indemnitor of rights and defenses otherwise available to the Indemnitor with respect to such claim or (ii) material prejudice to the Indemnitor with respect to such claim.  Upon written notice to the Indemnitee, the Indemnitor shall have the right to control the defense of any Third Party Claim at the Indemnitor’s sole expense and with counsel reasonably satisfactory to the Indemnitee; provided, that the Indemnitee shall have the right to participate in the defense of such Third Party Claim at its sole expense (unless there is a conflict of interest between the Indemnitor and the Indemnitee in respect of such Third Party Claim, in which case the expenses of defense of the Indemnitee shall be borne by the Indemnitor) and with counsel reasonably satisfactory to the Indemnitor, subject to the Indemnitor’s right to control the defense thereof.
(ii)    No Indemnitee may settle or compromise any claim or consent to the entry of any judgment with respect to which indemnification is being sought hereunder without the prior written consent of the Indemnitor (which consent shall not be unreasonably withheld, conditioned or delayed).
(iii)    If an Indemnitee claims a right to payment pursuant to this Agreement not involving a Third-Party Claim, such Indemnitee shall send written notice of such claim to the Indemnitor, but in any event not later than 30 calendar days after the Indemnitee becomes aware of such claim.  Such notice shall specify in reasonable detail the basis for such claim. As promptly as possible after the Indemnitee has given such notice, such Indemnitee and the Indemnitor shall establish the merits and amount of such claim (by mutual agreement, arbitration, litigation or otherwise) and, within five Business Days of the final determination of the merits and amount of such claim, the Indemnitor shall pay to the Indemnitee immediately available funds in an amount equal to such claim as determined hereunder, if any.
(c)    Survival.  All representations and warranties of (i) the Noteholder in Section 3 shall survive the Closing indefinitely and (ii) the Company in Section 4(a), Section 4(b) and Section 4(d) shall survive the Closing and terminate on the date of expiration of the statute of limitations for any claims of the Noteholder thereunder.  All other representations and warranties of the Parties made in this Agreement shall survive for six-months following the Closing. The covenants and agreements of the Parties made in this Agreement shall survive until performed (each such survival period as provided in this sentence and the two preceding sentences, a “Survival Period”).  The indemnifications set forth in Section 6(a) shall terminate in accordance with the applicable Survival Period, except that any matters for which a specific written claim for indemnity has been delivered to the Indemnitor on or before the termination of the applicable Survival Period shall survive until the final resolution of such claim.

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(d)    Limitations. 
(i)    Any Indemnitee that becomes aware of a Loss for which it seeks indemnification under this Section 6 shall be required to use commercially reasonable efforts to mitigate such Loss and an Indemnitor shall not be liable for any Loss to the extent that it is attributable to the Indemnitee’s failure to mitigate following a reasonable request; and
(ii)    in any claim for indemnification under this Agreement, no Indemnitor shall be required to indemnify the Indemnitee for punitive or exemplary damages, except to the extent such damages are payable pursuant to a Third-Party Claim against an Indemnitee for which such Indemnitee is entitled to indemnification under this Agreement.
(e)    Remedies; Exclusive Remedy.  Except in the case of knowing and intentional actual fraud with respect to the representations and warranties set forth in Section 3 and Section 4 of this Agreement or Willful and Material Breach of any covenant contained in this Agreement by the Party against whom rights and remedies are sought to be enforced, from and after Closing, the rights and remedies under this Section 6 are the sole and exclusive rights and remedies and in lieu of any and all other rights and remedies that the Company and its Representatives or the Noteholder and its Representatives may have against the Noteholder or the Company, respectively, under this Agreement or otherwise with respect to any breach of any representation or warranty or any failure to perform any covenant or agreement by the Noteholder or the Company set forth in this Agreement.  Effective as of the Closing, each of the Parties expressly waives, on their own behalf and on behalf of their Representatives any and all other rights, remedies and causes of action (other than under this Section 6 and any exceptions thereto listed in the first sentence of this Section 6(e) it or its Affiliates may have, in the case of the Company and its Representatives, against the Noteholder and, in the case of the Noteholder and its Representatives, against the Company, now or in the future under any law with respect to the transactions contemplated by this Agreement (other than in respect of obligations undertaken pursuant to any of the Additional Agreements).
7.    Miscellaneous.  
(a)    Amendments and Waivers.  Amendments or modifications to this Agreement may only be made, and compliance with any term, covenant, agreement, condition or provision set forth herein may only be omitted or waived (either generally or in a particular instance and either retroactively or prospectively), upon the written consent of each party hereto.
(b)    Notices.  All notices, requests, consents, reports and demands shall be in writing, shall be deemed effectively given upon receipt and shall be hand delivered, sent by email or other electronic transmission (provided confirmation of receipt of the transmission is mechanically or electronically generated and kept on file by the sending party), or mailed, postage prepaid, to the Noteholder at the applicable addresses and email addresses or to the Company at the address set forth below or, in each case, to such other address as may be furnished in writing to the other parties hereto:

11

If to the Company:
	
	
	Basic Energy Services, Inc.

	801 Cherry Street, Suite 2100

	Fort Worth, Texas 76102

	Attention:  David Schorlemer

	Email:  dschorlemer@basices.com

with a copy to (which shall not constitute notice):
	
	
	Weil, Gotshal & Manges LLP

	200 Crescent Court, Suite 300

	Dallas, Texas 75201

	Attention:   James R. Griffin

	                  Rodney L. Moore

	Email:  james.griffin@weil.com

	            rodney.moore@weil.com

If to the Noteholder:
	
	
	Ascribe III Investments LLC

	299 Park Avenue, 34th Floor

	New York, NY 10171

	Attention:  Lawrence First

	Email:  lfirst@ascribecapital.com
 

with a copy to (which shall not constitute notice):
	
	
	Fried, Frank, Harris, Shriver & Jacobson LLP

	One New York Plaza

	New York, New York 10004

	Attention:  Warren S. de Wied

	Email:  warren.de.wied@friedfrank.com

(c)    Titles and Headings.  The section and paragraph headings in this Agreement are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.
(d)    Counterparts.  This Agreement may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all of such counterparts shall constitute for all purposes one agreement.  Any signature hereto delivered by a Party by facsimile transmission or other electronic transmission shall be deemed an original signature hereto.
(e)    Governing Law; Jurisdiction; Jury Trial.  This Agreement and all claims or causes of action (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty 

12

made in this Agreement) shall in all respects be construed in accordance with and governed by the substantive laws of the State of Delaware, without reference to any choice of law rules (whether of the State of Delaware or any other jurisdictions) to the extent such rules would cause the application of the laws of any jurisdictions other than the State of Delaware.  Each party hereby irrevocably submits to the exclusive jurisdiction of the Court of Chancery in the State of Delaware or, if the Court of Chancery is not available or will not otherwise hear the action, any state or federal court in the State of Delaware, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
(f)    Entire Agreement.  This Agreement, including the Exhibits hereto and the Additional Agreements (which are an integral part hereof), embody the entire agreement and understanding of the Parties with respect to the subject matter hereof and supersede all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the Parties or any of their agents, Representatives or Affiliates relative to such subject matter, including, without limitation, any term sheets, emails or draft documents.
(g)    Certain Definitions and Interpretive Principles.  Capitalized terms in this Agreement shall have the meanings specified below, or as specified elsewhere in this Agreement, for all purposes hereof.  The following terms, as used in this Agreement, shall have the meanings as set forth below:
(i)    “Additional Agreement” or “Additional Agreements” has the meaning set forth in the Recitals.
(ii)    “Additional Notes” shall have the meaning given such term in the Indenture.
(iii)    “Affiliate” or “Affiliated” means, with respect a specified Person, any other Person, directly or indirectly Controlling or Controlled by or under direct or indirect common Control with such specified Person; provided, however, that the Company and its Subsidiaries shall not be deemed an Affiliate of the Noteholder.
(iv)    “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently 

13

exercisable or is exercisable only after the passage of time.  The term “Beneficially Owned” has a corresponding meaning.
(v)    “C&J Well Services” means C&J Well Services, Inc., a Delaware corporation.
(vi)    “Certificate” means the Certificate of Designations in the form attached to this Agreement as Exhibit A.
(vii)    “Closing Fee” shall have the meaning given such term in the Bridge Note.
(viii)    “Control,” “Controlling” or “Controlled” means, as to a specified Person, the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.
(ix)    “Common Stock” shall mean the common stock, par value $0.01 per share, of the Company.
(x)    “Credit Facility” means that certain ABL Credit Agreement, dated as of October 2, 2018, by and among the Company, as borrower, Bank of America, N.A., as administrative agent, swingline lender and an L/C issuer, each of the lenders party thereto and the other parties thereto, as amended by that certain Limited Consent and First Amendment to ABL Credit Agreement dated as of March 9, 2020 (the “First Amendment to Credit Facility”), and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time.
(xi)    “CS Equivalent Stock” shall mean the Series A Participating Preferred Stock, par value $0.01 per share, of the Company having the designations, rights, preferences, powers, restrictions and limitations set forth in the Certificate.
(xii)    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC thereunder.
(xiii)    “First Amendment to Credit Facility” has the meaning set forth in the definition of “Credit Facility.”
(xiv)    “GAAP” means United States generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession that are in effect from time to time, applied on a consistent basis for the periods involved.
(xv)    “Independent Committee” means a special committee of the board of directors of the Company comprised solely of at least two independent (including independence as to the Noteholder) directors.
(xvi)    “Liens” has the meaning set forth in Section 1.

14

(xvii)    “Make-Whole Fee” means an amount in cash equal to $1,000,000, to be paid to the Noteholder as consideration for the Noteholder agreeing to (and performing, as applicable) its obligations under Section 7.1(b) through Section 7.1(f) of the NexTier PSA.
(xviii)    “NexTier” means NexTier Holding Co., a Delaware corporation.
(xix)    “NexTier PSA” means that certain Purchase Agreement, dated as of the date hereof by and among the Noteholder, the Company, NexTier and C&J Well Services.
(xx)    “Party” or “party” means the Company or the Noteholder, and “Parties” and “parties” mean the Company and the Noteholder.
(xxi)    “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.
(xxii)    “Representatives” means, with respect to any Person, such Person’s directors, officers, partners, employees, members, managers, agents, advisors (including attorneys, accountants, consultants and financial advisors and any representatives of a Person’s advisors) and other representatives.
(xxiii)     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder.
(xxiv)    “SEC” means the U.S. Securities and Exchange Commission. 
(xxv)    “Willful and Material Breach” means a deliberate act or a deliberate failure to act, which act or failure to act constitutes in and of itself a material breach of this Agreement and which was undertaken with the knowledge that such act or failure to act would be, or would reasonably be expected to cause, a material breach of this Agreement.
(xxvi)    The words such as “herein,” “hereof,” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires.  The singular shall include the plural, and vice versa, unless the context otherwise requires.  The masculine shall include the feminine and neuter, and vice versa, unless the context otherwise requires.
(h)    Parties in Interest; Assignment.  This Agreement binds and inures solely to the benefit of each party hereto and its successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement.  This Agreement may not be assigned by any party without the prior written consent of the other parties.  Any purported assignment without consent as required by this Section 7(i) shall be null and void.
(i)    Severability.  In the event that one or more provisions of this Agreement shall be deemed or held to be invalid, illegal or unenforceable in any respect under any applicable law, this Agreement shall be construed with the invalid, illegal or unenforceable provision deleted, and the validity, legality and enforceability of the remaining provisions contained herein shall not be affected or impaired thereby.

15

(j)    Further Assurances.  From time to time, as and when requested by either party, the other party will execute and deliver, or cause to be executed and delivered, all such documents and instruments as may be reasonably necessary to consummate the transactions contemplated by this Agreement.
(k)    Specific Performance.  It is understood and agreed by the parties hereto that money damages would not be a sufficient remedy for any breach of this Agreement by the Company or the Noteholder, as applicable, and the non-breaching party of the Company or the Noteholder, as applicable, shall be entitled to specific performance and injunctive or other equitable relief as a remedy of any such breach.
(l)    Tax Matters.  Absent a change in law or Internal Revenue Service practice, or a contrary determination (as defined in Section 1313(a) of the Code), the Noteholder and the Company agree for United States federal income tax and withholding tax purposes not to treat the CSE Shares (based on their terms as set forth in the Certificate) as “preferred stock” within the meaning of Section 305 of the Code and Treasury Regulations Section 1.305-5.
[Remainder of page intentionally left blank; Signature pages follow.]

16

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
COMPANY:

BASIC ENERGY SERVICES, INC.

	
		
	By:
	/s/ Keith L. Schilling

	Name:
	Keith L. Schilling

	Title:
	President & CEO

NOTEHOLDER:

ASCRIBE III INVESTMENTS LLC

	
		
	By:
	/s/ Lawrence First

	Name:
	Lawrence First

	Title:
	Managing Director

Schedule A
	
			
	Noteholder
	Principal
Amount of 
Notes Beneficially Owned (Exchange Notes)
	Number of
Shares of Common Stock Beneficially Owned

	Ascribe III Investments LLC
	$34,350,000
	3,691,846

	Total
	$34,350,000
	3,691,846

Schedule B
Custodian Info for Noteholder: 
N/A

Noteholder Wiring Instructions:

Name of Bank:             JP Morgan Chase Bank NA (DTC 902)

ABA:                     021000021

Account Number:            2253566002

For Account of:            Ascribe III Investments LLC    

Schedule C
Company Wiring Instructions:

Name of Bank:             BANK OF AMERICA

Address:                700 Louisiana St
HOUSTON, TEXAS

Bank Account Name:            Basic Energy Services LP Depository Account

ABA WIRE DEPOSIT ROUTING:     026009593

ACH/EFT ROUTING:            111000025 

ACCOUNT #:              488038478705    

Please make attention to Doug Dunlap DDunlap@BasicES.com
    

Exhibit A
Certificate of Designations
[Attached.]Exhibit

Exhibit 10.2

	
					
	 
	 
	 
	 
	 

STOCKHOLDERS AGREEMENT

by and between

BASIC ENERGY SERVICES, INC.,

and

ASCRIBE III INVESTMENTS LLC

Dated as of March 9, 2020
	
					
	 
	 
	 
	 
	 

	
				
	Table of Contents

	 
	 
	 

	Article 1 DEFINITIONS AND INTERPRETATION
	1
	

	Section 1.1
	Definitions
	1
	

	Section 1.2
	Other Definitional and Interpretive Matters
	5
	

	Article 2 MANAGEMENT OF THE COMPANY AND CERTAIN ACTIVITIES
	6
	

	Section 2.1
	Board
	6
	

	Section 2.2
	Independent Committee Consent Rights
	7
	

	Article 3 ACQUISITIONS; TRANSFERS
	8
	

	Section 3.1
	Restrictions on Acquisitions
	8
	

	Section 3.2
	Preemptive Rights
	8
	

	Section 3.3
	Restrictions on Transfers
	9
	

	Article 4 TERMINATION
	10
	

	Article 5 MISCELLANEOUS
	10
	

	Section 5.1
	Notices
	10
	

	Section 5.2
	Governing Law: Venue: Jurisdiction
	11
	

	Section 5.3
	Waiver of Jury Trial
	12
	

	Section 5.4
	Successors and Assigns
	12
	

	Section 5.5
	Counterparts
	12
	

	Section 5.6
	Severability
	13
	

	Section 5.7
	Specific Performance
	13
	

	Section 5.8
	No Waivers; Amendments
	13
	

	Section 5.9
	Non-Recourse
	13
	

	Section 5.10
	Further Assurances
	14
	

	Section 5.11
	Joint Drafting
	14
	

	Section 5.12
	Entire Agreement
	14
	

	Section 5.13
	Ownership and Aggregation of Common Stock and Common Stock Equivalent Equity Securities; Action by Holders
	14
	

i

STOCKHOLDERS AGREEMENT
This STOCKHOLDERS AGREEMENT (this “Agreement”), dated as of March 9, 2020, is entered into by and between BASIC ENERGY SERVICES, INC., a Delaware corporation (the “Company”), and ASCRIBE III INVESTMENTS LLC, a Delaware limited liability company (“Ascribe”).
WHEREAS, the Company and Ascribe entered into the Exchange Agreement (as hereinafter defined); and
WHEREAS, in connection with the Closing (as defined in the Exchange Agreement), the Company and the Holder have agreed to enter into this Agreement on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the obligations under the Exchange Agreement and the mutual covenants and agreements of the Company and the Holder hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Article 1
DEFINITIONS AND INTERPRETATION
Section 1.1    Definitions.  Capitalized terms used herein and not otherwise defined shall have the meanings set forth in this Section 1.1:
“Affiliate” means, with respect to a specified Person, any other Person who, directly or indirectly, controls, is controlled by or is under common control with such specified Person, and the term “control” (including the terms “controlled”, “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by contract (including proxy) or otherwise; provided, however, for the avoidance of doubt that a Holder shall not be deemed an Affiliate of the Company for the purposes of this Agreement.
“Agreement” shall have the meaning set forth in the introductory paragraph hereof.
“Ascribe Affiliated Entities” means (i) Ascribe and each investment fund which Ascribe or its Affiliates controls (as defined in the definition of “Affiliate”) or for which Ascribe or its Affiliates act as manager or investment advisor and (ii) each Person in which Person(s) described in clause (i), directly or indirectly, individually or collectively, holds a majority of the outstanding Equity Securities or Voting Securities. For the purposes of determining whether a Person described in clause (ii) holds a majority of the outstanding Equity Securities of a Person, the outstanding Equity Securities of all classes of such Person shall be taken into account and ownership shall be determined on the basis of all such classes of Equity Securities taken as a whole.
“Beneficially Own” or “Beneficial Ownership” shall have the meaning as determined under Rule 13d-3 of the Exchange Act.
“Board” means the board of directors of the Company.

1

“Board Designees” shall have the meaning set forth in Section 2.1.3(b).
“Board Rights Termination Date” means, the earlier of (i) the earlier to occur of (A) the Holder Ownership Percentage being reduced to less than twenty-five percent (25%) or (B) the Holders and their Affiliates, collectively, no longer constituting the largest holder of the Fully-Diluted Common Equity or (ii) the waiver of Section 2.1.2 by an Independent Committee.
“Bridge Note” means the Senior Secured Promissory Note issued by the Company to Ascribe on March 9, 2020, as the same may be amended, restated, amended and restated, waived, supplemented or otherwise modified from time to time in accordance with its terms.
“Business Day” means any day other than a Saturday, Sunday or a day on which state or federally chartered banking institutions in New York City, New York or Fort Worth, Texas are not required to be opened.
“Bylaws” means the Third Amended and Restated Bylaws of the Company, as adopted on March 9, 2020, as the same may be amended, restated, amended and restated, waived, supplemented or otherwise modified from time to time in accordance with its terms.
“Certificate of Designations” means the Certificate of Designations of Series A Participating Preferred Stock of the Company filed with the Secretary of State of Delaware on March 9, 2020, as the same may be amended, restated, amended and restated, waived, supplemented or otherwise modified from time to time in accordance with its terms.
“Certificate of Incorporation” means the Second Amended and Restated Certificate of Incorporation of the Company filed with the Secretary of State of Delaware on December 23, 2016 and supplemented by the Certificate of Designations, as the same may be further amended, restated, amended and restated, waived, further supplemented or otherwise modified from time to time in accordance with its terms.
“Class I” means the class of directors of the Board designated as Class I pursuant to the Bylaws.
“Class II” means the class of directors of the Board designated as Class II pursuant to the Bylaws.
“Class III” means the class of directors of the Board designated as Class III pursuant to the Bylaws.
“Commission” means the United States Securities and Exchange Commission.
“Common Equity” means Common Stock, CS Equivalent Stock and any other common stock equivalent Equity Securities of the Company.
“Common Stock” means the common stock, par value $0.01 per share, of the Company, and any shares or capital stock for or into which such common stock hereafter is exchanged, converted, reclassified or recapitalized by the Company or pursuant to an agreement to which the Company is a party.
“Common Stock Equivalent Number” means, as of any date of determination, the number of shares of Common Stock that a holder of a share of CS Equivalent Stock would have received 

2

assuming such share of CS Equivalent Stock was converted pursuant to an Optional Conversion as of such date of determination. 
“Company” shall have the meaning set forth in the introductory paragraph hereof.
“Contracting Parties” shall have the meaning set forth in Section 5.9.
“Credit Facility” means that certain ABL Credit Agreement, dated as of October 2, 2018, by and among the Company, Bank of America, N.A., as administrative agent, swingline lender and an L/C issuer, UBS Securities LLC, as syndication agent, PNC Bank National Association, as documentation agent and an L/C issuer, and each of the lenders party thereto, as amended by that certain Limited Consent and First Amendment to ABL Credit Agreement dated as of March 9, 2020, and as further amended from time to time.
“CS Equivalent Stock” means Series A Participating Preferred Stock, par value $0.01 per share, of the Company having the designations, rights, preferences, powers, restrictions and limitations set forth in the Certificate of Designations.
“DGCL” means the General Corporation Law of the State of Delaware, as amended.
“Equity Cap” means 85.06%.
“Equity Securities” means shares of common stock or other equity securities of any class of an issuer, including any security, convertible security, exercisable warrant, option or other similar instrument conveying rights with respect to equity securities, including, in the case of the Company as of the date hereof, Common Stock and CS Equivalent Stock.
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.
“Exchange Agreement” means the Exchange Agreement, dated March 9, 2020, by and between the Company and Ascribe.
“Exempt Offerings” means (i) an issuance of awards of Equity Securities (“Awards”) to an employee pursuant to any plan or arrangement approved by the Board, or a duly authorized subcommittee of the Board, or the issuance of Equity Securities upon the exercise or conversion of any such Awards, (ii) an issuance of Equity Securities pursuant to an exercise or conversion of any Equity Securities with respect to which preemptive rights were provided at the time such Equity Securities were issued (or the issuance of which was itself an Exempt Offering), (iii) a subdivision of the issued and outstanding Equity Securities into a larger number of Equity Securities or the issuance of Equity Securities as a pro rata dividend or distribution in respect of outstanding Equity Securities approved by the Board, (iv) an issuance of Common Stock or CS Equivalent Stock in connection with the Exchange Agreement, (v) Equity Securities issued as consideration in a bona fide acquisition by the Company or any of its Subsidiaries, joint venture or other strategic transaction that was approved by the Board or (vi) an issuance of Common Stock in connection with the conversion of CS Equivalent Stock pursuant to the Certificate of Designations.
“Fully-Diluted Common Equity” means, as of the date of determination, the outstanding shares of Common Stock as calculated giving effect to the full conversion of all outstanding CS Equivalent Stock.

3

“GAAP” means United States generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession that are in effect from time to time, applied on a consistent basis for the periods involved.
“Holder” and “Holders” initially shall mean Ascribe and also shall mean each other Ascribe Affiliated Entity which at any time owns any Common Equity.
“Holder Ownership Percentage” means, as of any date of determination, a fraction (expressed as a percentage and after giving effect to Section 5.13), the numerator of which is the number of shares of Common Stock Beneficially Owned, collectively, by the Ascribe Affiliated Entities at such time, and the denominator of which is the Fully-Diluted Common Equity. 
“Independent” means, with respect to any individual, that (i) such individual qualifies as an independent director of the Company under the Company’s corporate governance and independence guidelines, applicable law and the rules and regulations of the Commission (or any successor thereto) and Listing Rules, including, if applicable, any enhanced requirements with respect to certain committees of the Company and (ii) such individual does not have any material financial interest in or other relationship (business or otherwise) with any Ascribe Affiliated Entity that could reasonably be expected to affect (or give the appearance of affecting) the ability of such individual to exercise independence as to the Ascribe Affiliated Entities in any matter to be considered or acted upon by the Board, as determined in good faith by an Independent Committee or, if an Independent Committee shall not exist as of the time of such determination, by a majority of the Board excluding such individual.
“Independent Committee” means a special committee of the Board comprised solely of at least two (2) Independent directors.  The individual Board members deemed to be Independent as of immediately following the execution of this Agreement shall be Julio M. Quintana, Timothy H. Day, and John E. Jackson.
“Listing Rules” means the rules and regulations of such national securities exchange national securities exchange, domestic over-the-counter market reported by the OTC Bulletin Board or the pink sheets, as applicable, on which the Common Stock is listed for trading or traded.
“New Registration Rights Agreement” shall have the meaning set forth in Section 3.3.5.
“Non-Party Affiliates” shall have the meaning set forth in Section 5.9.
“Optional Conversion” shall have the meaning given such term in the Certificate of Designations.
“Person” or “person” means any individual, firm, partnership, company or other entity, and shall include any successor (by merger or otherwise) of such entity.
“Preemptive Equity Election Notice” shall have the meaning set forth in Section 3.2.7.
“Preemptive Equity Notice” shall have the meaning set forth in Section 3.2.6.
“Preemptive Equity Offer Period” shall have the meaning set forth in Section 3.2.7.

4

“Preemptive Equity Purchase Election” shall have the meaning set forth in Section 3.2.2.
“Preemptive Equity Securities” means Common Equity or rights to acquire Common Equity issued by the Company from and after the date of this Agreement except Equity Securities issued in an Exempt Offering.
“Representatives” means, with respect to any Person, such Person’s directors, officers, partners, employees, members, managers, agents, advisors (including attorneys, accountants, consultants and financial advisors and any representatives of a Person’s advisors) and other representatives.
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder.
 “Subsidiary” of any Person means (a) a corporation a majority of whose outstanding shares of capital stock or other equity interests with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by one or more subsidiaries of such Person or by such Person and one or more subsidiaries of such Person, and (b) any other Person (other than a corporation) in which such Person, a subsidiary of such Person or such Person and one or more subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of the directors or other governing body of such Person.
“Transfer” means, when used as a verb, to sell, transfer, assign, convey or otherwise dispose, and when used as a noun, any direct or indirect sale, transfer, assignment, conveyance or other disposition, including by merger, exchange, operation of law, bequest or pursuant to any domestic relations order, whether voluntarily or involuntarily.
“Voting Securities” means any securities (including Equity Securities) that vote generally in the election of directors or managers, in the admission of general partners or in the selection of any other similar governing body. 
Section 1.2    Other Definitional and Interpretive Matters.  For purposes of this Agreement, the following rules shall apply: All references in this Agreement to Exhibits, Schedules, Articles, Sections, subsections and other subdivisions refer to the corresponding Exhibits, Schedules, Articles, Sections, subsections and other subdivisions of or to this Agreement unless expressly provided otherwise.  Titles appearing at the beginning of any Articles, Sections, subsections and other subdivisions of this Agreement are for convenience only, do not constitute any part of this Agreement, and shall be disregarded in construing the language hereof.  The words “this Agreement,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular Article, Section, subsection or other subdivision unless expressly so limited.  The word “including” (in its various forms) means including without limitation.  Unless expressly provided to the contrary, the word “or” is not exclusive.  All references to “$” or “dollars” shall be deemed references to United States dollars.  Each accounting term not defined herein, and each accounting term partly defined herein to the extent not defined, will have the meaning given to it under GAAP as in effect from time to time.  Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender, and words, terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires.  Except as expressly provided otherwise in this Agreement, references to any law or agreement means such law or agreement as it may be 

5

amended from time to time.  References to any date shall mean such date in Fort Worth, Texas and for purposes of calculating the time period in which any notice or action is to be given or undertaken hereunder, such period shall be deemed to begin at 12:01 a.m. on the applicable date in Fort Worth, Texas.  The word “extent” in the phrase “to the extent” shall mean the degree or proportion to which a subject or other thing extends, and such phrase shall not mean simply “if.”  If a date specified herein for giving any notice or taking any action is not a Business Day (or if the period during which any notice is required to be given or any action taken expires on a date which is not a Business Day), then the date for giving such notice or taking such action (and the expiration date of such period during which notice is required to be given or action taken) shall be the next day which is a Business Day.
Article 2
MANAGEMENT OF THE COMPANY AND CERTAIN ACTIVITIES
Section 2.1    Board.  
2.1.1    Initial Composition of the Board.  Effective as of the date of this Agreement, three (3) directors shall be appointed to the Board as follows: (i) Lawrence First shall be appointed as a Class I director on the Board; (ii) Derek Jeong shall be appointed as a Class II director on the Board; and (iii) Ross Solomon shall be appointed as a Class III director on the Board.  Following such appointments to the Board, the Board shall be comprised of seven (7) directors, constituted as follows: (a) three (3) Class I directors; (b) two (2) Class II directors; and (c) two (2) Class III directors.  
2.1.2    Independent Directors.  Ascribe agrees that, from and after the date hereof and until the Board Rights Termination Date, Ascribe shall, and shall cause each other Holder to, vote all Voting Securities of the Company (including the Common Stock and the CS Equivalent Stock) held by Ascribe and such other Holders or over which any Ascribe Affiliated Entity has voting control, and each of the Company and Ascribe agrees to take all other necessary or desirable actions within its control (including, as applicable, in its capacity as a stockholder or otherwise, and whether at a regular or special meeting of the stockholders or by written consent in lieu of a meeting), to cause the Board to include no less than two (2) directors that are Independent.
2.1.3    Board Representation.  
(a)    Until such time as the Holder Ownership Percentage is reduced to fifty percent (50%) or less, Ascribe shall be entitled (i) to designate for nomination for election to the Board all of the members of the Board and (ii) in the event of any vacancy arising from the death, incapacity, resignation or removal of any member of the Board, to designate an individual to fill the vacancy created thereby, in each case, subject to (1) Section 2.1.2 and (2) compliance with applicable Listing Rules.
(b)    Members of the Board designated by Ascribe pursuant to this Section 2.1.3 shall be referred to as the “Board Designees.”  The Company and the Board shall, subject to and consistent with the Board’s fiduciary duties, applicable law and applicable Listing Rules, take such actions as necessary to cause Board Designees to be nominated and submitted to the stockholders of the Company for election to the Board, or appointed to the Board by the remaining members of the Board, as applicable. 

6

Section 2.2    Independent Committee Consent Rights.  From and after the date hereof, neither the Company nor any of its Subsidiaries shall, and no Holder shall cause or otherwise permit the Company or any of its Subsidiaries to, take any of the following actions:
2.2.1    amend the Certificate of Incorporation to elect to not be governed by Section 203 of the DGCL, as contemplated by Section 203(b)(3) of the DGCL; or
2.2.2    without the prior approval of an Independent Committee:
(a)    approve any business combination or transaction for purposes of Section 203(a)(1) or Section 203(a)(3) of the DGCL with any Person that is an “interested stockholder” within the meaning of Section 203(c)(5) of the DGCL prior to such business combination or transaction;
(b)    amend, alter or repeal the Certificate of Incorporation (other than as described in Section 2.2.1), the Certificate of Designations, or the Bylaws of the Company, other than amendments to the Certificate of Incorporation to (i) increase the number of authorized shares of Common Stock of the Company, (ii) effect a reverse stock split for the purpose of facilitating a listing of the Common Stock under the Listing Rules of a national securities exchange, or (iii) permit stockholders to act by written consent;
(c)    issue or sell any Equity Securities in the Company or any Subsidiary of the Company to any Holder or any Affiliate of any Holder; provided this Section 2.2.2(c) shall not require approval of an Independent Committee for the issuance of Common Equity to any Holder pursuant to Section 3.2; and provided, further that the approval of an Independent Committee shall not be required for any Holder or any Affiliate of any Holder to receive Equity Securities of the Company or any Subsidiary of the Company in connection with any merger or other business combination between the Company or any Subsidiary of the Company and any Person (other than an Ascribe Affiliated Entity) in which any Ascribe Affiliated Entity owns or otherwise holds debt securities or Equity Securities, subject to the provisions of Section 3.3.1, to the extent applicable; or
(d)    enter into any contract or agreement, or consummate any transaction (including any merger or business combination, or acquisition of a material portion of the assets of the Company or its Subsidiaries), between the Company or any of its Subsidiaries, on the one hand, and any Ascribe Affiliated Entity, on the other hand; provided that the approval of an Independent Committee shall not be required for (i) the exercise by the Ascribe Affiliated Entities of their rights, or the performance by the Company of its obligations, under this Agreement, the Bridge Note, the Exchange Agreement, the Certificate of Designations, the New Registration Rights Agreement (provided that the New Registration Rights Agreement has been approved by an Independent Committee in accordance with Section 3.3.5) or any other agreement or instrument entered into in connection with any of the foregoing, or (ii) any Ascribe Affiliated Entity to participate in, and receive consideration in any merger or other business combination between the Company or any Subsidiary of the Company with any Person (other than an Ascribe Affiliated Entity) in which any Ascribe Affiliated Entity owns or otherwise holds debt securities or Equity Securities, subject to the provisions of Section 3.3.1, to the extent applicable.

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Article 3
ACQUISITIONS; TRANSFERS
Section 3.1    Restrictions on Acquisitions.  
3.1.1    Subject to Sections 3.1.2 and 3.2 and subject to the right of any Holder to receive shares of Common Stock upon conversion of the CS Equivalent Stock, from and after the date hereof, each Holder agrees that, without the prior approval of an Independent Committee, such Holder shall not, and shall cause each other Ascribe Affiliated Entity not to, directly or indirectly, in any manner acquire, agree to acquire or make any proposal or offer to acquire, any Common Equity or any rights or options to acquire any such Common Equity.
3.1.2    Notwithstanding Section 3.1.1, (a) if a Holder Transfers any shares of Common Equity to any Person other than an Ascribe Affiliated Entity, then the Ascribe Affiliated Entities shall be permitted to acquire Common Equity up to an amount such that immediately after any such acquisition the Holder Ownership Percentage does not exceed the Equity Cap; and (b) any Ascribe Affiliated Entity shall be entitled to acquire, agree to acquire or make any proposal or offer to acquire Common Equity (without any limitations under this Section 3.1) in connection with any merger or other business combination between the Company or any Subsidiary of the Company and any Person (other than an Ascribe Affiliated Entity) in which any Ascribe Affiliated Entity owns or otherwise holds debt securities or Equity Securities.  
Section 3.2    Preemptive Rights.  
3.2.1    The Company shall not issue or sell, or agree to issue or sell, any Preemptive Equity Securities to any third party unless the Company shall have first delivered written notice (a “Preemptive Equity Notice”) to the Holders of the Company’s intent to issue, sell or exchange Preemptive Equity Securities, which Preemptive Equity Notice (a) shall state the number and type of Preemptive Equity Securities proposed to be issued and (b) may include the price and other material terms and conditions on which the Company proposes to issue the Preemptive Equity Securities (provided if the Company does not include the price at which the Company proposes to issue the Preemptive Equity Securities in a Preemptive Equity Notice, the Company shall use good faith efforts to provide to the Holders reasonable advance notice of the price range or price, when determined, at which the Company proposes to issue the Preemptive Equity Securities).
3.2.2    Notwithstanding Section 2.2.2 or Section 3.1.1, for a period of twenty (20) Business Days from the date the Preemptive Equity Notice is delivered to the Holders (the “Preemptive Equity Offer Period”), the Holders may, by written notice to the Company (the “Preemptive Equity Election Notice”) elect to purchase (the “Preemptive Equity Purchase Election”), on the terms and conditions specified in the Preemptive Equity Election Notice, up to a number of Preemptive Equity Securities, in the aggregate as to all Holders, equal to (a) the number of Preemptive Equity Securities proposed to be issued or sold by the Company multiplied by (b) the Holder Ownership Percentage immediately prior to the delivery of the Preemptive Equity Notice by the Company, which shall constitute an offer to purchase such Preemptive Equity Securities; provided that Holders shall not be entitled to acquire any Common Equity pursuant to this Section 3.2 to the extent that, immediately following such acquisition, the Ascribe Affiliated Entities shall own Common Equity in excess of the Equity Cap; the Preemptive Equity Securities acquired by the Holders pursuant to this Section 3.2 shall be allocated pro-rata among the Holders based on 

8

their ownership of Common Equity immediately prior to such acquisition, unless otherwise agreed among the Holders.
3.2.3    If one or more Holders makes a timely Preemptive Equity Purchase Election, the Company shall provide written notice to such Holder(s) establishing the date of the new issuance of Preemptive Equity Securities and the procedures for purchasing the Preemptive Equity Securities. Notwithstanding the foregoing, the Company shall be under no obligation to consummate any proposed issuance of Preemptive Equity Securities, nor shall there be any liability on the part of the Company or the Board to the Holders if the Company has not consummated any proposed issuance of Preemptive Equity Securities pursuant to this Section 3.2 for whatever reason, regardless of whether the Company shall have delivered a Preemptive Equity Notice.
3.2.4    If no Holder delivers a Preemptive Equity Election Notice during the Preemptive Equity Offer Period, the Company shall be entitled to sell such Preemptive Equity Securities in the Preemptive Equity Notice on such terms and conditions as determined by the Company in its sole discretion for a period of one hundred fifty (150) days following the expiration of the Preemptive Equity Offer Period.  Any Preemptive Equity Securities not sold by the Company prior to the expiration of such one hundred and fifty (150) day period must be reoffered to the Holders pursuant to the terms of this Section 3.2.
Section 3.3    Restrictions on Transfers.  
3.3.1    Each Holder agrees that, until the Ascribe Affiliated Entities, collectively, cease to Beneficially Own Common Equity representing a majority of the Fully-Diluted Common Equity, such Holder shall not, individually or collectively with any other Holders, Transfer (directly or indirectly), in one or a series of related transactions, Common Equity representing more than 50% of the Fully-Diluted Common Equity unless each holder of Common Stock (other than the Ascribe Affiliated Entities) is entitled to participate in such transaction or transactions and is entitled to receive (i) the same form of consideration per share of Common Stock as the Holders (as determined giving effect to the full conversion of all outstanding CS Equivalent Stock) with respect to such Transfer(s) or (ii) equivalent cash consideration per share of Common Stock as the Holders (as determined giving effect to the full conversion of all outstanding CS Equivalent Stock) with respect to such Transfer(s).
3.3.2    Notwithstanding the foregoing, any Holder may Transfer shares of Common Equity held by such Holder to any Ascribe Affiliated Entity; provided that, as a condition to such Transfer, and such Transfer shall not be effective until, the Transferring Holder shall have delivered to the Company a stock power or other assignment instrument effecting such Transfer together with a joinder to this Agreement, in form and substance acceptable to an Independent Committee, pursuant to which such transferee agrees to be bound by the terms of this Agreement, duly executed by such transferee.
3.3.3    Ascribe shall cause any Ascribe Affiliated Entity that is not a party to this Agreement and which acquires any Common Equity to deliver to the Company a joinder to this Agreement, in form and substance acceptable to an Independent Committee, pursuant to which such Ascribe Affiliated Entity agrees to be bound by the terms of this Agreement, duly executed by such Ascribe Affiliated Entity, and any such Ascribe Affiliated Entity shall not be entitled to any rights or benefits under this Agreement until such joinder is delivered to the Company.

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3.3.4    All Transfers of Common Equity Beneficially Owned by the Holders shall be in compliance with applicable state and federal securities laws and the terms of this Agreement.
3.3.5    Promptly following the date of this Agreement, the Company shall use good faith efforts to enter into a registration rights agreement for the benefit of the Ascribe Affiliated Entities with respect to the Common Stock and CS Equivalent Stock in form and substance reasonably satisfactory to the Company and Ascribe (the “New Registration Rights Agreement”); provided that the New Registration Rights Agreement and any amendment thereto shall require the approval of an Independent Committee.
Article 4
TERMINATION
This Agreement shall terminate automatically upon the earlier to occur of (i) the Holder Ownership Percentage being reduced to less than fifteen percent (15%) or (ii) the Holders and their Affiliates, collectively, no longer constituting the largest holder of the Fully-Diluted Common Equity.
Article 5
MISCELLANEOUS
Section 5.1    Notices.  All notices and communications which are required or may be given to a party hereunder shall be in writing and shall be deemed to have been duly given upon the earliest of:  (a) if by personal delivery, then the date of delivery if such date is a Business Day during normal business hours, or, if such date is not a Business Day during normal business hours, then the next Business Day, (b) if sent by U.S. certified mail, postage prepaid, return receipt requested, then the date shown as received on the return notice, (c) if sent by email, with delivery receipt to sender or (d) if by Federal Express overnight delivery (or other reputable overnight delivery service), the date shown on the notice of delivery if such date is a Business Day during normal business hours, or, if such date is not a Business Day during normal business hours, then on the next Business Day:

10

If to the Company:
	
	
	Basic Energy Services, Inc.

	801 Cherry Street, Suite 2100

	Fort Worth, Texas 76102

	Attention:  David Schorlemer

	Email:  dschorlemer@basices.com

with a copy to (which shall not constitute notice):
	
	
	Weil, Gotshal & Manges LLP

	200 Crescent Court, Suite 300

	Dallas, Texas 75201

	Attention:   James R. Griffin

	                  Rodney L. Moore

	Email:  james.griffin@weil.com

	            rodney.moore@weil.com

If to Ascribe:
	
	
	Ascribe III Investments LLC

	299 Park Avenue, 34th Floor

	New York, NY 10171

	Attention:  Lawrence First

	Email:  lfirst@ascribecapital.com
 

with a copy to (which shall not constitute notice):
	
	
	Fried, Frank, Harris, Shriver & Jacobson LLP

	One New York Plaza

	New York, New York 10004

	Attention:  Warren S. de Wied

	Email:  warren.de.wied@friedfrank.com

The parties may change the identity, address and email addresses to which such communications are to be addressed by giving written notice to the other parties in the manner provided in this Section 5.1.
Section 5.2    Governing Law: Venue: Jurisdiction.  THIS AGREEMENT and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in this Agreement) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.  Each party hereby agrees that any action based upon, arising out of or relating to this Agreement (including any action concerning the violation or threatened violation of this Agreement) shall be heard and determined in any state or federal court sitting in the Court of Chancery of the State of Delaware (or, if the Chancery Court of the State of Delaware declines to accept jurisdiction 

11

over a particular matter, in the United States District Court for the District of Delaware), and the parties hereto hereby irrevocably submit to the exclusive jurisdiction of such courts (and, in the case of appeals, appropriate appellate courts therefrom) in any such action or proceeding and irrevocably waive the defense of an inconvenient forum to the maintenance of any such action or proceeding.  In addition, each party consents to process being served in any such lawsuit, action or proceeding by mailing, certified mail, return receipt requested, a copy thereof to such party at the address in effect for notices hereunder, and agrees that such services shall constitute good and sufficient service of process and notice thereof.  The consents to jurisdiction set forth in this paragraph shall not constitute general consents to service of process in the State of Delaware and shall have no effect for any purpose except as provided in this Section 5.2 and shall not be deemed to confer rights on any Person other than the parties hereto.  Nothing in this Section 5.2 shall affect or limit any right to serve process in any other manner permitted by law.
Section 5.3    Waiver of Jury Trial.  EACH PARTY HEREBY WAIVES ITS RESPECTIVE RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT WHETHER BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.  EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT.  EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
Section 5.4    Successors and Assigns.  This Agreement shall be binding upon the Company, the Holders, and their respective successors and permitted assigns (which shall be deemed to include any Ascribe Affiliated Entity to which a Holder Transfers any shares of Common Equity); provided that if any Holder Transfers any shares of Common Equity to any Ascribe Affiliated Entity such Holder shall remain the sole party entitled to exercise the rights of such Holder under this Agreement unless and until such Ascribe Affiliated Entity shall execute a joinder to this Agreement in form and substance acceptable to an Independent Committee agreeing to be bound by the terms of this Agreement with respect to all shares of Common Equity held by such Ascribe Affiliated Entity. Except as to any Ascribe Affiliated Entity to which a Holder Transfers Common Equity (and subject to the terms of this Section 5.4), no Holder may assign any of its rights under this Agreement to any other Person (including any transferee of any Common Equity held by a Holder) without the prior written consent of the Company, which consent may be granted or denied by the Company in its sole discretion and to be valid must be approved by an Independent Committee, and any assignment in violation of the foregoing shall be void ab initio.
Section 5.5    Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. This Agreement and any signed agreement entered into in connection herewith or contemplated hereby, and any amendments hereto or thereto, to the extent signed and delivered by facsimile, by electronic mail in “portable document format” (“.pdf”) form, or any other electronic transmission, shall be treated in all manner and respects as an original contract and shall be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person.

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Section 5.6    Severability.  Any provision of this Agreement which is prohibited, unenforceable or not authorized in any jurisdiction is, as to such jurisdiction, ineffective to the extent of any such prohibition, unenforceability or nonauthorization without invalidating the remaining provisions hereof, or affecting the validity, enforceability or legality of such provision in any other jurisdiction, unless the ineffectiveness of such provision would result in such a material change as to cause completion of the transactions contemplated hereby to be unreasonable.  Upon a determination that any provision of this Agreement is prohibited, unenforceable or not authorized, the parties hereto agree to negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible, in a mutually acceptable manner, in order that the transactions contemplated hereby are consummated as originally contemplated to the fullest extent possible.
Section 5.7    Specific Performance.  The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached, including if the parties hereto fail to take any action required of them hereunder to consummate this Agreement.  It is accordingly agreed that, in addition to any other applicable remedies at law or equity, the parties shall be entitled to an injunction or injunctions, without proof of damages, to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement.  Each party hereto agrees that it will not oppose the granting of an injunction, specific performance or other equitable relief on the basis that (i) the other party has an adequate remedy at law or (ii) an award of specific performance is not an appropriate remedy for any reason at law or in equity.  Each of the parties hereto hereby waives (i) any defenses in any action for specific performance, including the defense that a remedy at law would be adequate and (ii) any requirement under any law to post a bond or other security as a prerequisite to obtaining equitable relief.
Section 5.8    No Waivers; Amendments.  
5.8.1    No failure or delay on the part of the Company or the Holder in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to the Company or any Holder at law or in equity or otherwise.
5.8.2    Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver makes specific reference to this Agreement, and, (i) in the case of an amendment, such amendment is with the written consent of the Company and each Holder, and (ii), in the case of a waiver, such waiver is signed by the Person against whom it is to be enforced; provided that any amendment of this Agreement or waiver by the Company hereunder shall only be effective if such amendment or waiver is approved by an Independent Committee.
Section 5.9    Non-Recourse.  All claims, obligations, liabilities, or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with, or relate in any manner to this Agreement, or the negotiation, execution, or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the entities that are expressly identified as parties in the preamble to this Agreement (“Contracting Parties”).  No Person who is not a Contracting Party, including any director, officer, employee, incorporator, member, partner, manager, stockholder, 

13

Affiliate, agent, attorney, or representative of, and any financial advisor or lender to, any Contracting Party, or any director, officer, employee, incorporator, member, partner, manager, stockholder, Affiliate, agent, attorney, or representative of, and any financial advisor or lender to, any of the foregoing (“Non-Party Affiliates”), shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations, or liabilities arising under, out of, in connection with, or related in any manner to this Agreement or based on, in respect of, or by reason of this Agreement or its negotiation, execution, performance, or breach; and, to the maximum extent permitted by law, each Contracting Party hereby waives and releases all such liabilities, claims, causes of action, and obligations against any such Non-Party Affiliates.
Section 5.10    Further Assurances.  Each party shall cooperate and shall take such further action and shall execute and deliver such further documents as may be reasonably requested by any other party in order to carry out the provisions and purposes of this Agreement.
Section 5.11    Joint Drafting.  It is the intention of the parties that every covenant, term and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any party (notwithstanding any rule of law requiring an agreement to be strictly construed against the drafting party).  Further, prior drafts of this Agreement or any ancillary agreements hereto or the fact that any clauses have been added, deleted or otherwise modified from any prior drafts of this Agreement or any ancillary agreements hereto shall not be used as an aide of construction or otherwise constitute evidence of the intent of the parties hereto; and no presumption or burden of proof shall arise favoring or disfavoring any party hereto by virtue of such prior drafts.
Section 5.12    Entire Agreement.  This Agreement (including all schedules and exhibits hereto) contains the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters.
Section 5.13    Ownership and Aggregation of Common Stock and Common Stock Equivalent Equity Securities; Action by Holders.  
5.13.1    For purposes of interpreting the term and terms of, and determining the application and availability of any obligations and rights under, this Agreement, (a) all shares of Common Stock (including, as applicable, all shares of CS Equivalent Stock and other Common Equity) Beneficially Owned by each Holder and its Affiliates shall be aggregated and (b) all determinations in respect of shares of CS Equivalent Stock shall be calculated based on the Common Stock Equivalent Number (or with respect to any other shares of Common Equity, the multiple applicable to such shares of Common Equity, if any), in each case, unless the context otherwise requires.
5.13.2    Any action to be taken or consent or approval to be given by the Holders pursuant to this Agreement shall be deemed taken, consented to or approved upon the affirmative consent or approval by the Holders; provided that, if the Company receives conflicting direction, consents or approvals from the Holders with respect to any action to be taken or consent or approval to be given by the Holders pursuant to this Agreement, then any action to be taken or consent or approval to be given by the Holders pursuant to this Agreement shall be deemed taken, consented to or approved upon the affirmative consent or approval by the Holder(s) that holds a majority of the Common Equity then-held by all Holders.

14

5.13.3    From time to time upon the written request by the Company, each Holder shall provide to the Company in writing a statement setting forth the number of shares of Common Equity Beneficially Owned by such Holder, certified by an officer or other duly authorized representative of such Holder.
[Remainder of Page Intentionally Left Blank; Signature Pages Follow.]

15

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date first written above.
COMPANY:

BASIC ENERGY SERVICES, INC.

	
		
	By:
	/s/ Keith L. Schilling

	Name:
	Keith L. Schilling

	Title:
	President & CEO

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date first written above.
HOLDER:

ASCRIBE III INVESTMENTS LLC

	
		
	By:
	/s/ Lawrence First

	Name:
	Lawrence First

	Title:
	Managing Director

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