Document:

exv10w1

Exhibit 10.1

FORM OF

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

by and among

COMPRESSCO, INC.,

COMPRESSCO FIELD SERVICES, INC.,

COMPRESSCO CANADA, INC.,

COMPRESSCO LEASING, LLC,

COMPRESSCO MEXICO INVESTMENT I, LLC,

COMPRESSCO MEXICO INVESTMENT II, LLC,

COMPRESSCO DE MEXICO, S. DE R.L. DE C.V.,

COMPRESSCO PARTNERS GP INC.,

COMPRESSCO PARTNERS, L.P.,

COMPRESSCO PARTNERS OPERATING, LLC,

COMPRESSCO INTERNATIONAL, LLC,

COMPRESSCO FIELD SERVICES INTERNATIONAL, LLC,

COMPRESSCO DE ARGENTINA S.R.L.,

COMPRESSCO NETHERLANDS B.V.,

COMPRESSCO HOLDINGS, LLC,

COMPRESSCO NETHERLANDS COÖPERATIEF U.A.,

COMPRESSCO PARTNERS SUB, INC.,

TETRA INTERNATIONAL INCORPORATED,

PRODUCTION ENHANCEMENT MEXICO, S.A. DE C.V.,

PROVIDENCE NATURAL GAS, LLC

and

TETRA TECHNOLOGIES, INC.

Dated as of [•]

 

 

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     This Contribution, Conveyance and Assumption Agreement, dated as of [•] (this “Agreement”), is
by and among Compressco, Inc., a Delaware corporation (“Compressco”), Compressco Field Services,
Inc., an Oklahoma corporation and wholly owned subsidiary of Compressco (“CFSI”), Compressco
Canada, Inc., an Alberta corporation and wholly owned subsidiary of Compressco (“Cansub”),
Compressco Leasing, LLC, a Delaware limited liability company and wholly owned subsidiary of CFSI
(“Leaseco”), Compressco Mexico Investment I, LLC, a Delaware limited liability company and wholly
owned subsidiary of CFSI (“Mexico Sub 1”), Compressco Mexico Investment II, LLC, a Delaware limited
liability company and wholly owned subsidiary of CFSI (“Mexico Sub 2”), Compressco de Mexico, S. de
R.L. de C.V., a Mexican limited liability corporation of variable capital and subsidiary of Mexico
Sub I and Mexico Sub II (“CP Mexico”), Compressco Partners GP Inc., a Delaware corporation and
wholly owned subsidiary of CFSI (the “General Partner”), Compressco Partners, L.P., a Delaware
limited partnership and subsidiary of CFSI and the General Partner (the “Partnership”), Compressco
Partners Operating, LLC, a Delaware limited liability company and wholly owned subsidiary of CFSI
(“OPCO”), Compressco Field Services International, LLC, a Delaware limited liability company and
wholly owned subsidiary of CFSI (“Argentina Sub 1”), Compressco International, LLC, a Delaware
limited liability company and wholly owned subsidiary of CFSI (“Argentina Sub 2”), Compressco de
Argentina S.R.L., an Argentina entity and subsidiary of Argentina Sub 1 and Argentina Sub 2
(“Compressco Argentina”), Compressco Netherlands B.V., a Netherlands private limited liability
company and wholly owned subsidiary of CFSI (“Compressco Dutch BV”), Compressco Holdings, LLC, a
Delaware limited liability company and wholly owned subsidiary of CFSI (“Compressco Holdings”),
Compressco Netherlands Coöperatief U.A., a Netherlands coöperatief and subsidiary of CFSI and
Compressco Holdings (“Compressco Dutch Co-op”), Compressco Partners Sub, Inc., a Delaware
corporation and a wholly owned subsidiary of the Partnership (“MLP Sub”), TETRA International
Incorporated, a Delaware corporation (“TII”), Production Enhancement Mexico, S.A. de C.V., a Mexico
[___] (“PE Mexico”), Providence Natural Gas, LLC, an Oklahoma limited liability company
(“Providence”), and TETRA Technologies Inc., a Delaware corporation. The above-named entities are
sometimes referred to in this Agreement singularly as a “Party” and collectively as the “Parties.”
Capitalized terms used herein shall have the meanings assigned to such terms in Article I.

RECITALS

     WHEREAS, the General Partner and CFSI have formed the Partnership, pursuant to the Delaware
Revised Uniform Limited Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any
business activity that is approved by the General Partner and that lawfully may be conducted by a
limited partnership organized pursuant to the Delaware LP Act.

     WHEREAS, concurrently with or immediately following the completion of the transactions
contemplated hereby, the Partnership shall consummate an initial public offering (the “IPO”) of its
Common Units.

 

 

     WHEREAS, in furtherance of the objectives and purposes set forth in the preceding recitals,
the Parties hereby acknowledge that each of the following actions was taken prior to the date
hereof:

	 	1.	 	CFSI formed Leaseco under the terms of the Delaware Limited Liability Company
Act (the “Delaware LLC Act”) and contributed [$1,000] to Leaseco in exchange for all of
the membership interests in Leaseco (such membership interests, the “Leaseco
Interests”).
	 
	 	2.	 	CFSI sold the compressor units and equipment used to conduct its U.S.-based
production enhancement services business (such compressor units and equipment, as set
forth on Schedule 1, the “Production Enhancement Services Assets”) to Leaseco
in exchange for a note receivable issued by Leaseco (the “Leaseco Note”) in the amount
of $[•], and thereafter Leaseco leased the Production Enhancement Services Assets to
CFSI.
	 
	 	3.	 	CFSI formed Mexico Sub 1 under the terms of the Delaware LLC Act and
contributed [$1,000] to Mexico Sub 1 in exchange for all of the membership interests in
Mexico Sub 1 (such membership interests, the “Mexico Sub 1 Interests”).
	 
	 	4.	 	CFSI formed Mexico Sub 2 under the terms of the Delaware LLC Act and
contributed [$1,000] to Mexico Sub 2 in exchange for all of the membership interests in
Mexico Sub 2 (such membership interests, the “Mexico Sub 2 Interests”).
	 
	 	5.	 	Mexico Sub 1 and Mexico Sub 2 formed CP Mexico and contributed [MXN $1,530] and
[MXN $1,470], respectively, to CP Mexico, in exchange for 51% and 49% of the ownership
interests, respectively, in CP Mexico.
	 
	 	6.	 	CFSI formed the General Partner under the terms of the Delaware General
Corporation Law (the “DGCL”) and contributed [$1,000] to the General Partner in
exchange for all of the shares of common stock of the General Partner.
	 
	 	7.	 	CFSI and the General Partner formed the Partnership under the terms of the
Delaware LP Act and contributed $999 and $1, respectively, to the Partnership in
exchange for a 99.9% limited partner interest and a 0.1% general partner interest,
respectively, in the Partnership.
	 
	 	8.	 	CFSI formed OPCO under the terms of the Delaware LLC Act and contributed
[$1,000] to OPCO in exchange for all of the membership interests in OPCO (such
membership interests, the “OPCO Interests”).
	 
	 	9.	 	CFSI formed Argentina Sub 1 under the Delaware LLC Act and contributed [$1,000]
to Argentina Sub 1 in exchange for all of the membership interests in Argentina Sub 1
(the “Argentina Sub 1 Interests”).

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	 	10.	 	CFSI formed Argentina Sub 2 under the Delaware LLC Act and contributed [$1,000]
to Argentina Sub 2 in exchange for all of the membership interests in Argentina Sub 2
(the “Argentina Sub 2 Interests”).
	 
	 	11.	 	Argentina Sub 1 and Argentina Sub 2 formed Compressco Argentina under Argentina
laws, and contributed [$____] and [$____], respectively, to Compressco Argentina, in
exchange for 90% and 10% of the ownership interests, respectively, in Compressco
Argentina.
	 
	 	12.	 	CFSI formed Compressco Dutch BV under the laws of the Netherlands and
contributed [$____] to Compressco Dutch BV in exchange for all of the ownership
interests in Compressco Dutch BV.
	 
	 	13.	 	CFSI formed Compressco Holdings under the Delaware LLC Act and contributed
[$____] in exchange for all of the membership interests in Compressco Holdings (the
“Compressco Holdings Interests”).
	 
	 	14.	 	CFSI and Compressco Holdings formed Compressco Dutch Co-op under the laws of
the Netherlands, and contributed [$_____] and [$______], respectively, in exchange for
99% and 1%, respectively, of the membership interests in Compressco Dutch Co-op.
	 
	

	 	15.	 	The Partnership formed MLP Sub under the terms of the DGCL and contributed [$1,000] to MLP
Sub in exchange for all of the shares of common stock of MLP Sub.
	

     WHEREAS, in furtherance of the objectives and purposes set forth in the first two recitals
hereto, the Parties desire that each of the following transactions shall occur at or immediately
before the Effective Time (as hereinafter defined):

	 	1.	 	CFSI shall convey its 99.9% limited partner interest in the Partnership to the
General Partner.
	 
	 	2.	 	Compressco, Inc. shall convey all of the outstanding shares of common stock of
Cansub, no par value (the “Cansub Shares”), to CFSI.
	 
	 	3.	 	CFSI shall (i) sell to Cansub an undivided 66.7% interest (the “Cansub Sale
Interest”) in (a) the compressor units and equipment utilized to conduct CFSI’s
Canadian-based production enhancement equipment rental business (such compressor units
and equipment, as set forth on Schedule 2 hereto, the “Cansub Assets”), (b) the
compressor units and equipment utilized to conduct CFSI’s Indonesian-based production
enhancement equipment rental business (such compressor units and equipment, as set
forth on Schedule 3 hereto, the “Indonesian Assets”) and (c) the production
enhancement rental contracts pursuant to which it leases the Indonesian Assets (such
contracts, as set forth on Schedule 3 hereto, the “Indonesian Contracts”) in
exchange for a note receivable (the “Cansub Note”) equal in value to 66.7% of the fair
market value of the Cansub Assets, the Indonesian Assets and the Indonesian Contracts
and (ii)

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	 	 	 	contribute to Cansub an undivided 33.3% interest (the “Cansub Contribution
Interest”) in the Cansub Assets, the Indonesian Assets and the Indonesian Contracts.
	 
	 	4.	 	CFSI shall (i) contribute to Compressco Dutch BV (a) all of the Cansub Shares
and (b) all of the Mexico Sub 1 Interests, and (c) all of the Mexico Sub 2 Interests
and (ii) sell the Cansub Note to Compressco Dutch BV in exchange for a note receivable
issued by Compressco Dutch BV in the amount of [$______] (the “BV Note”).
	 
	 	5.	 	CFSI shall contribute 99.0% and 1.0% of the ownership interests in Compressco
Dutch BV to Compressco Dutch Co-op and Compressco Holdings, respectively, and
Compressco Holdings shall contribute such 1.0% of the ownership interests in Compressco
Dutch BV to Compressco Dutch Co-op.
	 
	

	 	6.	 	CFSI shall convey to OPCO (i) all of CFSI’s production enhancement services
contracts with CFSI’s U.S.-based customers (such contracts, as set forth on
Schedule 4 hereto, the “Domestic Contracts”), (ii) all of CFSI’s leasehold
interests in the Production Enhancement Services Assets (such leasehold interests, as
set forth on Schedule 5 hereto, the “U.S. Leasehold Interests”), (iii) [_____]
GasJack® compressor units and [_____] VJackTM compressor units (such
compressor units, as set forth on Schedule 6 hereto, the “U.S. Rental
Equipment”) (iv) the Leaseco Note, (v) all of the Leaseco Interests, (vi) all of the
ownership interests in Compressco Dutch Co-op that are owned by CFSI, (vii) all of the Compressco
Holdings Interests, (viii) the BV Note, (ix) all of the Argentina Sub 1 Interests and
(x) all of the Argentina Sub 2 Interests.
	

	 
	

	 	7.	 	CFSI shall convey to the General Partner (a) all of the OPCO Interests and (b)
all of the assets and liabilities comprising CFSI’s manufacturing business and domestic
rental business and [_____] GasJack® compressor units and [_____] VJackTM compressor
units (such assets, liabilities and compressor units, the “MLP Sub Business”) in
exchange for (x) the assumption by the General Partner of a $31.5 million promissory
note owed by CFSI to Tetra Financial Services, Inc. (the “Intercompany Liability”) and
(y) [___] newly issued shares of common stock of the General Partner.
	

	 
	 	8.	 	The Partnership shall (a) redeem the 99.9% initial limited partner interest in
the Partnership and the 0.1% initial general partner interest in the Partnership held
by the General Partner and (b) refund and distribute to the General Partner the initial
capital contributions made by CFSI and the General Partner to the Partnership, along
with any interest or other profit that resulted from the investment or other use of
such initial capital contributions.
	 
	 	9.	 	The General Partner shall contribute to the Partnership (i) all of the OPCO
Interests and (ii) the MLP Sub Business (the items set forth in clauses (i) and (ii),
together, the “GP Contribution”), in exchange for (a) a 2.0% general partner interest
in the Partnership, (b) the Incentive Distribution Rights, (c) [      ] Common

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	 	 	 	Units representing a [      ]% limited partner interest in the Partnership, (d)
[      ] Subordinated Units representing a [      ]% limited partner
interest in the Partnership, (e) a right to receive the proceeds from the
Over-Allotment Option (as hereinafter defined) and/or additional Common Units (to
the extent the Over-Allotment Option is not exercised) and (f) the assumption by the
Partnership of the Intercompany Liability.
	 
	 	10.	 	TII shall (i) cancel its lease agreements with respect to the compressor units
and other equipment TII currently leases to CP Mexico and PE Mexico (the “TII
Equipment”) and contribute the TII Equipment to the Partnership, and (ii) contribute
all of the shares of common stock of Providence (the “Providence Interest”), and a
0.002% ownership interest in PE Mexico (the “PE Mexico Interest”) to the Partnership
(the items set forth in clauses (i) and (ii), together, the “TII Contribution”), in
exchange for [      ] Common Units representing a [      ]% limited partner
interest in the Partnership and
[      ] Subordinated
Units representing a [      ]% limited partner interest in the Partnership.
	 
	

	 	11.	 	The Partnership shall contribute (i) the TII Equipment
to OPCO, (ii) 1.0% of the
Providence Interest and 1.0% of the PE Mexico Interest to Compressco Holdings, and
Compressco Holdings shall contribute such 1.0% of the Providence Interest and such 1.0%
of the PE Mexico Interest to Compressco Dutch BV, and (iii) contribute 99.0% of the
Providence Interest and 99.0% of the PE Mexico Interest to OPCO, and OPCO shall
contribute such 99.0% of the Providence Interest and such 99.0% of the PE Mexico
Interest to Compressco Dutch BV.
	

	 
	

	 	12.	 	Pursuant to the Underwriting Agreement (as hereinafter defined), the
Underwriters (as hereinafter defined) shall contribute $[•] in cash to the Partnership
in exchange for 2,500,000 Common Units, representing a 15.9% limited partner
interest in the Partnership and the General Partner and TII shall thereafter hold a
[•]% limited partner interest and [•]% limited partner interest, respectively, in the
Partnership.
	

	 
	

	 	13.	 	The public shall purchase, through the Underwriters, 2,500,000 Common Units
representing a 15.9% limited partner interest in the Partnership for an aggregate
price of $[•] million in cash, less amounts of (i) $[•] in the aggregate (the
“Spread”), payable to the Underwriters for the Underwriters’ discount of [•]%, and (ii)
$[•] in the aggregate (the “Structuring Fee”), payable to Raymond James & Associates,
Inc. and J.P. Morgan Securities, Inc. for a structuring fee.
	

	 
	

	 	14.	 	The Partnership shall use a portion of the net proceeds received from the IPO
to (i) pay IPO-related transaction expenses (excluding the Spread and the Structuring
Fee) estimated to be approximately $[•] million, and (ii) pay $31.5 million to TETRA
Financial Services, Inc. to retire the Intercompany Liability, and the Partnership
shall contribute the remaining net proceeds of the IPO to OPCO for use in growing its
wellhead compression-based production enhancement services business.
	

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	 	15.	 	The Partnership shall convey the MLP Sub Business to MLP Sub.
	 
	 	16.	 	OPCO and Compressco Dutch BV shall enter into a lease agreement, pursuant to
which OPCO shall lease to Compressco Dutch BV the TII Equipment.
	 
	 	17.	 	Compressco Dutch BV, CP Mexico and PE Mexico shall enter into a sublease
agreement, pursuant to which Compressco Dutch BV shall sublease to CP Mexico and PE
Mexico the TII Equipment.
	 
	 	18.	 	If the Underwriters exercise the Over-Allotment Option, in whole or in part,
the Partnership shall distribute the exercise proceeds (excluding the Spread and the
Structuring Fee) to the General Partner. If the Over-Allotment Option is not exercised
or is partially exercised, then the Partnership shall distribute any and all Common
Units not sold pursuant to the exercise of the Over-Allotment Option to the General
Partner.

     NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and
agreements herein contained, the Parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     The terms set forth below in this ARTICLE I shall have the meanings ascribed to them below:

     “Commission” means the U.S. Securities and Exchange Commission.

     “Common Unit” has the meaning assigned to such term in the Partnership Agreement.

     “Effective Time” means the time at which the Registration Statement is declared effective by
the Commission.

     “Incentive Distribution Rights” has the meaning assigned to such term in the Partnership
Agreement.

     “Over-Allotment Option” has the meaning assigned to such term in the Partnership Agreement.

     “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of the
Partnership, dated as of [•].

     “Registration Statement” means the Registration Statement on Form S-1 filed with the
Commission (Registration No. 333-155260), as amended and effective at the Effective Time.

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

     “Subordinated Unit” has the meaning assigned to such term in the Partnership Agreement.

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     “Underwriters” means those underwriters listed in the Underwriting Agreement.

     “Underwriting Agreement” means that certain Underwriting Agreement between [Raymond James &
Associates, Inc. and J.P. Morgan Securities, Inc.], as representatives of the Underwriters, the
General Partner and the Partnership, dated as of [•].

ARTICLE II

CONTRIBUTION, SALE, ACKNOWLEDGEMENTS AND DISTRIBUTIONS

     Section 2.1 Contribution of CFSI’s Limited Partner Interest in the Partnership to the
General Partner. CFSI hereby grants, contributes, conveys, assigns, transfers, sets over and
delivers to the General Partner, its successors and assigns, for its and their own use forever, all
right, title and interest in and to the 99.9% limited partner interest in the Partnership held by
CFSI, and the General Partner hereby accepts such 99.9% limited partner interest.

     Section 2.2 Contribution of the Cansub Shares by Compressco to CFSI. Compressco
hereby grants, contributes, conveys, assigns, transfers, sets over and delivers to CFSI, its
successors and its assigns, for its and their own use forever, all right, title and interest in and
to all of the Cansub Shares, and CFSI hereby accepts the Cansub Shares.

     Section 2.3 Sale and Contribution of Certain Assets by CFSI to Cansub. (a) CFSI
hereby grants, contributes, conveys, assigns, transfers, sets over and delivers to Cansub, its
successors and its assigns, for its and their own use forever, all right, title and interest in and
to the Cansub Sale Interest, and Cansub hereby accepts the Cansub Sale Interest, in exchange for
the Cansub Note, in the form attached hereto as Exhibit A, and CFSI hereby accepts the
Cansub Note, assumes all of Cansub’s duties and obligations under the Cansub Note, and agrees to
pay, perform and discharge, as and when due, all of the obligations of Cansub under the Cansub Note
accruing on and after the date of this Agreement, and (b) CFSI hereby grants, contributes, conveys,
assigns, transfers, sets over and delivers to Cansub, its successors and its assigns, for its and
their own use forever, all right, title and interest in and to the Cansub Contribution Interest,
and Cansub hereby accepts the Cansub Contribution Interest.

     Section 2.4 Sale and Contribution of Certain Assets by CFSI to Compressco Dutch BV.
(a) CFSI hereby grants, contributes, conveys, assigns, transfers, sets over and delivers to
Compressco Dutch BV, its successors and its assigns, for its and their own use forever, all right,
title and interest in and to the Cansub Note, and Compressco Dutch BV hereby accepts the Cansub
Note, assumes all of CFSI’s duties and obligations under the Cansub Note, and agrees to pay,
perform and discharge, as and when due, all of the obligations of CFSI under the Cansub Note
accruing on and after the date of this Agreement, in exchange for the BV Note, in the form attached
hereto as Exhibit B, and CFSI hereby accepts the BV Note, assumes all of Compressco Dutch
BV’s duties and obligations under the BV Note, and agrees to pay, perform and discharge, as and
when due, all of the obligations of Compressco Dutch BV under the BV Note accruing on and after the
date of this Agreement, and (b) CFSI hereby grants, contributes, conveys, assigns, transfers, sets
over and delivers to Compressco Dutch BV, its successors and its assigns, for its and their own use
forever, all right, title and interest in and to (i) all of the Cansub Shares, (ii) all of the
Mexico Sub 1 Interests, and (iii) all of the Mexico Sub 2 Interests, and Compressco Dutch BV hereby
accepts such ownership interests.

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     Section 2.5 Contribution of Ownership Interests in Compressco Dutch BV by CFSI to
Compressco Dutch Co-op and Compressco Holdings. (a) CFSI hereby grants, contributes, conveys,
assigns, transfers, sets over and delivers to Compressco Dutch Co-op, its successors and its
assigns, for its and their own use forever, all right, title and interest in and to 99.0% of the
ownership interests in Compressco Dutch BV, and Compressco Dutch Co-op hereby accepts such
ownership interests, and (b) CFSI hereby grants, contributes, conveys, assigns, transfers, sets
over and delivers to Compressco Holdings, its successors and its assigns, for its and their own use
forever, all right, title and interest in and to 1.0% of the ownership interests in Compressco
Dutch BV, and Compressco Holdings hereby accepts such ownership interests.

     Section 2.6 Contribution of 1.0% of Ownership Interests in Compressco Dutch BV by
Compressco Holdings to Compressco Dutch Co-op. Compressco Holdings hereby grants, contributes,
conveys, assigns, transfers, sets over and delivers to Compressco Dutch Co-op, its successors and
its assigns, for its and their own use forever, all right, title and interest in and to 1.0% of the
ownership interests in Compressco Dutch BV, and Compressco Dutch Co-op hereby accepts such
ownership interests.

     Section 2.7 Contribution of the Domestic Contracts, U.S. Leasehold Interests, U.S. Rental
Equipment, Leaseco Note, Leaseco Interests, Ownership Interests in Dutch Co-op, Compressco Holdings
Interest, BV Note, Argentina Sub 1 Interests and Argentina Sub 2 Interests by CFSI to OPCO.
CFSI hereby grants, distributes, conveys, assigns, transfers, sets over and delivers to OPCO, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
(i) the Domestic Contracts, (ii) the U.S. Leasehold Interests, (iii) the U.S. Rental Equipment,
(iv) the Leaseco Note, (v) all of the Leaseco Interests, (vi) all of the ownership interests in
Compressco Dutch Co-op that are owned by CFSI, (vii) all of the Compressco Holdings Interests,
(viii) the BV Note; (ix) all of the Argentina Sub 1 Interests and (x) all of the Argentina Sub 2
Interests, and OPCO hereby accepts each of the items set forth in clauses (i) through (x) above,
assumes all of CFSI’s duties and obligations under each of the items set forth in clauses (i),
(ii), (iv) and (viii) above, and agrees to pay, perform and discharge, as and when due, all of the
obligations of Compressco Dutch BV under each of the items set forth in clauses (i), (ii), (iv) and
(viii) accruing on and after the date of this Agreement.

     Section 2.8 Contribution of the GP Contribution by CFSI to the General Partner. CFSI
hereby grants, contributes, conveys, assigns, transfers, sets over and delivers to the General
Partner, its successors and its assigns, for its and their own use forever, all right, title and
interest in and to the GP Contribution, and the General Partner hereby accepts the GP Contribution,
assumes all of CFSI’s duties and obligations under the liabilities of the MLP Sub Business, and
agrees to pay, perform and discharge, as and when due, all of the obligations of CFSI under the
liabilities of the MLP Sub Business accruing on and after the date of this Agreement, in exchange
for (i) the assumption by the General Partner of the Intercompany Liability, and the General
Partner hereby accepts the Intercompany Liability, assumes all of CFSI’s duties and obligations
under the Intercompany Liability, and agrees to pay, perform and discharge, as and when due, all of
the obligations of CFSI under the Intercompany Liability accruing on and after the date of this
Agreement, and (ii) [____] newly issued shares of common stock of the General Partner, and CFSI
hereby accepts such shares.

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     Section 2.9 Redemption of the Initial Partner Interests in the Partnership and the Return
of Initial Capital Contributions. The Partnership (a) hereby redeems the initial 99.9% limited
partner interest in the Partnership and the initial 0.1% general partner interest in the
Partnership held by the General Partner and (b) hereby refunds and distributes to the General
Partner the initial capital contributions made by CFSI and the General Partner to the Partnership
along with any interest or other profit that resulted from the investment or other use of such
initial capital contributions.

     Section 2.10 Contribution of the GP Contribution by the General Partner to the
Partnership. The General Partner hereby grants, contributes, conveys, assigns, transfers, sets
over and delivers to the Partnership, its successors and its assigns, for its and their own use
forever, all right, title and interest in and to the GP Contribution, and the Partnership hereby
accepts the GP Contribution, assumes all of the General Partner’s duties and obligations under the
liabilities of the MLP Sub Business, and agrees to pay, perform and discharge, as and when due, all
of the obligations of the General Partner under the liabilities of the MLP Sub Business accruing on
and after the date of this Agreement, in exchange for (i) the assumption of the Intercompany
Liability by the Partnership, and the Partnership hereby accepts the Intercompany Liability,
assumes all of the General Partner’s duties and obligations under the Intercompany Liability, and
agrees to pay, perform and discharge, as and when due, all of the obligations of the General
Partner under the Intercompany Liability accruing on and after the date of this Agreement, and (ii)
(A) a 2.0% general partner interest in the Partnership (B) the Incentive Distribution Rights, (C)
[____] Common Units representing a [__]% limited partner interest in the Partnership, (D) [____]
Subordinated Units representing a [__]% limited partner interest in the Partnership, and (E) the
right to receive proceeds from the Over-Allotment Option and/or additional Common Units (to the
extent the Over-Allotment Option is not exercised), and the General Partner hereby accepts each of
the items set forth in clauses (A) through (E) above.

     Section 2.11
Cancellation of  TII Equipment Rental Contract by TII,
CP Mexico and PE Mexico. (a) Each of TII
and CP Mexico hereby acknowledge the cancellation and termination of
that Equipment Rental Contract, dated November 1, 2008, by and between
TII and CP Mexico, pursuant to which TII leases compressor units
and other related equipment to CP Mexico, and (b) each of TII and  PE
Mexico hereby acknowledge the cancellation and termination of that
Equipment Rental Contract, dated November 1, 2008, by and between TII and PE Mexico,
pursuant to which TII leases compressor units and related equipment to
PE Mexico.

     Section 2.12 Contribution of the TII Contribution by TII to the Partnership. TII
hereby grants, contributes, conveys, assigns, transfers, sets over and delivers to the Partnership,
its successors and its assigns, for its and their own use forever, all right, title and interest in
and to the TII Contribution, and the Partnership hereby accepts the TII Contribution, in exchange
for (i) [•] Common Units representing a [•]% limited partner interest in the Partnership, and (ii)
[•] Subordinated Units representing a [•]% limited partner interest in the Partnership, and TII
hereby accepts such Common Units and Subordinated Units.

     Section 2.13 Contribution of the TII Equipment by the Partnership to OPCO. The
Partnership hereby grants, contributes, conveys, assigns, transfers,
sets over and delivers to OPCO,
its successors and its assigns, for its and their own use forever, all right, title and interest in
and to the TII Equipment, and OPCO hereby accepts the TII Equipment.

     Section 2.14 Contribution of Ownership Interests in Providence and PE Mexico by the
Partnership to Compressco Holdings and OPCO. (a) The Partnership hereby grants, contributes,
conveys, assigns, transfers, sets over and delivers to Compressco Holdings, its successors and its
assigns, for its and their own use forever, all right, title and interest in and to (i) 1.0% of the
Providence Interest and (ii) 1.0% of the PE Mexico Interest, and Compressco Holdings hereby accepts
such ownership interests, and (b) the Partnership hereby grants, contributes, conveys, assigns,
transfers, sets over and delivers to OPCO, its successors and its

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assigns, for its and their own use forever, all right, title and interest in and to (i) 99.0%
of the Providence Interest and (ii) 99.0% of the PE Mexico Interest, and OPCO hereby accepts such
ownership interests.

     Section 2.15 Contribution of Ownership Interests in Providence and PE Mexico by Compressco
Holdings and OPCO to Compressco Dutch BV. (a) Compressco Holdings hereby grants, contributes,
conveys, assigns, transfers, sets over and delivers to Compressco Dutch BV, its successors and its
assigns, for its and their own use forever, all right, title and interest in and to (i) 1.0% of the
Providence Interest and (ii) 1.0% of the PE Mexico Interest, and Compressco Dutch BV hereby accepts
such ownership interests, and (b) OPCO hereby grants, contributes, conveys, assigns, transfers,
sets over and delivers to Compressco Dutch BV, its successors and its assigns, for its and their
own use forever, all right, title and interest in and to (i) 99.0% of the Providence Interest and
(ii) 99.0% of the PE Mexico Interest, and Compressco Dutch BV hereby accepts such ownership
interests.

     Section 2.16 Underwriters’ Cash Contribution. The Parties hereby acknowledge that the
Underwriters have, pursuant to the Underwriting Agreement, made a capital contribution to the
Partnership of $[•] in cash (or, a net capital contribution to the Partnership of $[•] after the
Spread and the Structuring Fee payable to Raymond James & Associates, Inc. and J.P. Morgan
Securities, Inc), in exchange for the issuance by the Partnership to
the Underwriters of 2,500,000 Common
Units, representing a 15.9% limited partner interest in the Partnership.

     Section 2.17 Payment of Transaction Expenses by the Partnership and Contribution of Net
Proceeds by the Partnership to OPCO. The Parties hereby acknowledge (i) the payment by the
Partnership, in connection with the transactions contemplated hereby, of estimated transaction
expenses in the amount of approximately $[•] million (exclusive of the Spread and the Structuring
Fee), (ii) the payment of $31.5 million to TETRA Financial Services to retire the Intercompany
Liability, and (iii) the contribution by the Partnership to OPCO of $[•] of the net proceeds
received from the IPO for use in growing the Partnership’s wellhead compression-based production
enhancement services business.

     Section 2.18 Contribution of the MLP Sub Business by the Partnership to MLP Sub. The
Partnership hereby grants, contributes, conveys, assigns, transfers, sets over and delivers to MLP
Sub, its successors and its assigns, for its and their own use forever, all right, title and
interest in and to the MLP Sub Business, and MLP Sub hereby accepts such MLP Sub Business, assumes
all of the Partnership’s duties and obligations under the liabilities of the MLP Sub Business, and
agrees to pay, perform and discharge, as and when due, all of the obligations of the Partnership
under the liabilities of the MLP Sub Business accruing on and after the date of this Agreement.

     Section 2.19 Lease Agreement by and between OPCO and Compressco Dutch BV. OPCO and
Compressco Dutch BV hereby acknowledge the effectiveness of a lease agreement, dated of even date
herewith, by and between OPCO and Compressco Dutch BV, pursuant to which OPCO shall lease to
Compressco Dutch BV the TII Equipment.

     Section 2.20 Sublease Agreement by and among Compressco Dutch BV, CP Mexico and PE
Mexico. Compressco Dutch BV, CP Mexico and PE Mexico hereby

10

 

acknowledge the effectiveness of a sublease agreement, dated of even date herewith, by and
among Compressco Dutch BV, CP Mexico and PE Mexico, pursuant to which Compressco Dutch BV shall
sublease to CP Mexico and PE Mexico the TII Equipment.

ARTICLE III

ADDITIONAL TRANSACTIONS

     Section 3.1 Sale and Purchase of Additional Common Units. If the Over-Allotment
Option is exercised in whole or in part, the Underwriters shall contribute additional cash to the
Partnership (the “Proceeds”), in exchange for up to an additional 375,000 Common Units on the
basis of the IPO price per Common Unit set forth in the Registration Statement, net of the Spread
and the Structuring Fee.

     Section 3.2 Exercise of the Over-Allotment Option. The Parties hereby acknowledge
that, if the Underwriters elect to exercise the Over-Allotment Option, the Partnership shall
distribute that portion of the Proceeds to the General Partner that is equal in value to the amount
by which the value of the GP Contribution exceeded the value of the Common Units and Subordinated
Units received by the General Partner in exchange for the GP Contribution. If the Underwriters do
not exercise or partially exercise the Over-Allotment Option, the Partnership shall distribute to
the General Partner the Common Units that are not purchased by the Underwriters pursuant to the
Over-Allotment Option.

ARTICLE IV

FURTHER ASSURANCES

     From time to time after the Effective Time, and without any further consideration, the Parties
hereby agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of
sale, conveyances, instruments, notices, releases, acquittances and other documents, and to do all
such other acts and things, all in accordance with applicable law, as may be necessary or
appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights,
titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are
intended to be so granted, (b) more fully and effectively to vest in the applicable Parties and
their respective successors and assigns beneficial and record title to the interests contributed
and assigned by this Agreement or intended to be so and (c) more fully and effectively to carry out
the purposes and intent of this Agreement.

ARTICLE V

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of ARTICLE II and ARTICLE III of this Agreement shall be operative or have any effect until the
Effective Time, at which time all the provisions of ARTICLE II of this Agreement shall be effective
and operative in accordance with ARTICLE VI, without further action by any Party hereto.

11

 

ARTICLE VI

MISCELLANEOUS

     Section 6.1 Order of Completion of Transactions. The transactions provided for in
Article II and Article III of this Agreement shall be completed following the Effective Time in the
following order: first, the transactions provided for in Article II shall be completed immediately
following the Effective Time in the order set forth therein; and second, following the completion
of the transactions provided for in Article II, the transactions provided for in Article III, if
they occur, shall be completed.

     Section 6.2 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole,
including, without limitation, all Schedules and Exhibits attached hereto, and not to any
particular provision of this Agreement. All references herein to Articles, Sections, Schedules and
Exhibits shall, unless the context requires a different construction, be deemed to be references to
the Articles and Sections of this Agreement and the Schedules and Exhibits attached hereto, and all
such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof
for all purposes. All personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders, and the singular shall include the
plural and vice versa. The use herein of the word “including” following any general statement, term
or matter shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation”, “but not limited to”, or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such general statement,
term or matter.

     Section 6.3 Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and assigns.

     Section 6.4 No Third-Party Rights. The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create rights in any other
person or confer upon any other person any benefits, rights or remedies, and no person is or is
intended to be a third party beneficiary of any of the provisions of this Agreement.

     Section 6.5 Counterparts. This Agreement may be executed in any number of counterparts
with the same effect as if all signatories had signed the same document. All counterparts shall be
construed together and shall constitute one and the same instrument.

     Section 6.6 Choice of Law. This Agreement shall be subject to and governed by the laws
of the State of Delaware. Each Party hereby submits to the jurisdiction of the state and federal
courts in the State of Delaware.

     Section 6.7 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political

12

 

body having jurisdiction over the subject matter hereof, such contravention or invalidity
shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did
not contain the particular provisions or provisions held to be invalid and an equitable adjustment
shall be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

     Section 6.8 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties. Each such instrument shall be
reduced to writing and shall be designated on its face as an amendment to this Agreement.

     Section 6.9 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written,
with respect to the subject matter of this Agreement and such instruments. This Agreement and such
instruments contain the entire understanding of the Parties with respect to the subject matter
hereof and thereof. No understanding, representation, promise or agreement, whether oral or
written, is intended to be or shall be included in or form part of this Agreement unless it is
contained in a written amendment hereto executed by the Parties after the date of this Agreement.

     Section 6.10 Deed; Bill of Sale; Assignment and Assumption Agreement. To the extent
required and permitted by applicable law, this Agreement shall also constitute a “deed,” “bill of
sale” or “assignment and assumption agreement” of the assets, interests and obligations granted,
contributed, conveyed, assigned, transferred, set over and delivered herein.

(Remainder of page intentionally left blank. Signature pages follow.)

13

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date
first above written.

	 	 	 	 	 
	 	COMPRESSCO, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Ronald J. Foster 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO FIELD SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Ronald J. Foster 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO CANADA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Ronald J. Foster 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO LEASING, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Philip N. Longorio 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO MEXICO INVESTMENT I, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Philip N. Longorio 	 
	 	 	Title:  	Manager 	 
	 
	 	COMPRESSCO MEXICO INVESTMENT II, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Philip N. Longorio 	 
	 	 	Title:  	Manager 	 
	 

Signature Page to Contribution, Conveyance and Assumption Agreement

 

 

	 	 	 	 	 
	 	COMPRESSCO DE MEXICO, S. DE R.L. DE C.V.

 	 
	 	By:  	 	 
	 	 	Name:  	Philip N. Longorio 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO PARTNERS GP INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Ronald J. Foster 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO PARTNERS, L.P.

By: Compressco Partners GP Inc.,

       its general partner

 	 
	 	By:  	 	 
	 	 	Name:  	Ronald J. Foster 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO PARTNERS OPERATING, LLC

By: Compressco Field Services, Inc.,

       its sole member

 	 
	 	By:  	
 	 
	 	 	Name:  	Ronald J. Foster 	 
	 	 	Title:  	President 	 
	 
	 	COMPRESSCO INTERNATIONAL, LLC

By: [                                        ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Contribution, Conveyance and Assumption Agreement

 

 

	 	 	 	 	 
	 	COMPRESSCO FIELD SERVICES INTERNATIONAL, LLC

 	 
	 	By:  	[                                        ]	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	

	 	COMPRESSCO DE ARGENTINA S.R.L.

 	 
	

	 	By:  	[                                        ]	 
	 	 	 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COMPRESSCO NETHERLANDS B.V.

 	 
	 	By:  	[                                        ]	 
	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COMPRESSCO HOLDINGS, LLC

 	 
	 	By:  	[                                        ]	 
	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COMPRESSCO NETHERLANDS COÖPERATIEF U.A.

 	 
	 	By:  	[                                        ]	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Contribution, Conveyance and Assumption Agreement

 

 

	 	 	 	 	 
	 	COMPRESSCO PARTNERS SUB, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TETRA INTERNATIONAL INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRODUCTION ENHANCEMENT MEXICO, S.A. DE C.V.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PROVIDENCE NATURAL GAS, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TETRA TECHNOLOGIES INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Contribution, Conveyance and Assumption Agreement

 

 

SCHEDULE 1

PRODUCTION ENHANCEMENT SERVICES ASSETS

1-1

 

SCHEDULE 2

CANSUB ASSETS

2-1

 

SCHEDULE 3

INDONESIAN ASSETS and INDONESIAN CONTRACTS

3-1

 

SCHEDULE 4

DOMESTIC CONTRACTS

4-1

 

SCHEDULE 5

U.S. LEASEHOLD INTERESTS

5-1

 

SCHEDULE 6

U.S. RENTAL EQUIPMENT

6-1

 

EXHIBIT A

FORM OF CANSUB NOTE

A-1

 

EXHIBIT B

FORM OF BV NOTE

C-1exv10w2

Exhibit 10.2

 

 

FORM OF

OMNIBUS AGREEMENT

among

TETRA TECHNOLOGIES, INC.,

COMPRESSCO PARTNERS GP INC.,

and

COMPRESSCO PARTNERS, L.P.

 

 

 

 

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

	 	 	 	 	 

	1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II
	SERVICES
	 
	 	 	 	 
	2.1 Services and Personnel Provided to The Partnership Group
	 	 	5	 
	 
	ARTICLE III
	INDEMNIFICATION
	 
	 	 	 	 
	3.1 Environmental Indemnification
	 	 	6	 
	3.2 Additional Indemnification
	 	 	7	 
	3.3 Limitations Regarding Indemnification
	 	 	7	 
	3.4 Indemnification Procedures
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV
	MISCELLANEOUS
	 
	 	 	 	 
	4.1 Choice of Law; Submission to Jurisdiction
	 	 	9	 
	4.2 Notice
	 	 	9	 
	4.3 Entire Agreement
	 	 	9	 
	4.4 Termination
	 	 	10	 
	4.5 Effect of Waiver or Consent
	 	 	10	 
	4.6 Amendment or Modification
	 	 	10	 
	4.7 Assignment; Third Party Beneficiaries
	 	 	10	 
	4.8 Counterparts
	 	 	10	 
	4.9 Severability
	 	 	10	 
	4.10 Gender, Parts, Articles and Sections
	 	 	10	 
	4.11 Further Assurances
	 	 	10	 
	4.12 Withholding or Granting of Consent
	 	 	11	 
	4.13 Laws and Regulations
	 	 	11	 
	4.14 Negation of Rights of Limited Partners, Assignees and Third Parties
	 	 	11	 
	4.15 No Recourse Against Officers or Directors
	 	 	11	 

SCHEDULE

	 	 	Schedule 2.1(c) — SG&A Services

 

 

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT is entered into on, and effective as of, the Closing Date (as defined
herein) among TETRA Technologies, Inc., a Delaware corporation (“TETRA”), Compressco Partners GP
Inc., a Delaware corporation (the “General Partner”), and Compressco Partners, L.P., a Delaware
limited partnership (the “Partnership”). The above-named entities are sometimes referred to in
this Agreement singularly as a “Party” and collectively as the “Parties.”

RECITALS:

     The Parties desire by their execution of this Agreement to evidence their understanding:

     1. As more fully set forth in Article II, with respect to reimbursement obligations of the
Partnership Group to: (i) the General Partner for all direct and indirect expenses incurred on
behalf of the Partnership Group and (ii) TETRA for certain general and administrative support
services that are necessary to conduct the Partnership Group’s business.

     2. As more fully set forth in Article III, with respect to certain indemnification rights and
obligations among the Parties.

     In consideration of the premises and the covenants, conditions, and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I

DEFINITIONS

1.1 Definitions

          (a) Capitalized terms used herein but not defined shall have the meanings given them in the
Partnership Agreement.

          (b) As used in this Agreement, the following terms shall have the respective meanings set
forth below:

     “Affiliate” has the meaning given to such term in the Partnership Agreement.

     “Agreement” means this Omnibus Agreement, as it may be amended, modified or
supplemented from time to time in accordance with the terms hereof.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions in Houston, Texas are authorized or are obligated by law, executive order or
governmental decree to be closed.

     “Change of Control” means, with respect to any Person (the “Applicable Person”), any of
the following events: (i) any sale, lease, exchange or other transfer (in one transaction or
a series of related transactions) of all or substantially all of the

 

 

Applicable Person’s assets to any other Person, unless immediately following such sale,
lease, exchange or other transfer such assets are owned, directly or indirectly, by the
Applicable Person or such Applicable Person owns or controls such other Person; (ii) the
dissolution or liquidation of the Applicable Person; (iii) the consolidation or merger of
the Applicable Person with or into another Person, other than any such transaction where (a)
the outstanding Voting Securities of the Applicable Person are changed into or exchanged for
Voting Securities of the surviving Person or its parent and (b) the holders of the Voting
Securities of the Applicable Person immediately prior to such transaction own, directly or
indirectly, not less than a majority of the outstanding Voting Securities of the surviving
Person or its parent immediately after such transaction; and (iv) a “person” or “group”
(within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) being or becoming the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than
50% of all of the then outstanding Voting Securities of the Applicable Person, except in a
merger or consolidation that would not constitute a Change of Control under clause (iii)
above.

     “Closing Date” means the date of the closing of the initial public offering of Common
Units.

     “Common Unit” has the meaning given such term in the Partnership Agreement.

     “Compressco” means Compressco, Inc., a Delaware corporation.

     “Compressor Unit” means a wellhead compressor unit used by the Partnership to provide
natural gas wellhead compression-based production enhancement services, including GasJack®
compressor units and VJackTM compressor units.

     “Conflicts Committee” has the meaning given such term in the Partnership Agreement.

     “Contribution Agreement” means that certain Contribution, Conveyance and Assumption
Agreement, dated as of the Closing Date, by and among Compressco, Compressco Field Services,
Inc., Compressco Canada, Inc., Compressco Leasing, LLC, Compressco Mexico Investment I, LLC,
Compressco Mexico Investment II, LLC, Compressco de Mexico, S. de R.L. de C.V., the General
Partner, the Partnership, OPCO, Compressco Field Services International, LLC, Compressco
International, LLC, Compressco de Argentina S.R.L., Compressco Netherlands B.V., Compressco
Holdings, LLC, Compressco Netherlands Coöperatief U.A., MLP Sub, TETRA International
Incorporated, Production Enhancement Mexico, S.A. de C.V., Providence Natural Gas, Inc. and
TETRA Technologies Inc., together with the additional conveyance documents and instruments
contemplated or referenced thereunder, as such may be amended, supplemented or restated from
time to time.

     “Covered Environmental Losses” has the meaning given to such term in Section 3.1(a).

     “Environmental Laws” means all federal, state, and local laws, statutes, rules,
regulations, orders and ordinances, legally enforceable requirements and rules of

2

 

common law relating to protection of the environment including, without limitation, the
federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund
Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air
Act, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Oil
Pollution Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act and
other environmental conservation and protection laws, each as amended through and existing
on the Closing Date.

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

     “General Partner” has the meaning given to such term in the preamble to this Agreement.

     “General Partner Services” has the meaning given to such term in Section 2.1(a).

     “Hazardous Substance” means (a) any substance that is designated, defined or classified
as a hazardous waste, hazardous material, pollutant, contaminant or toxic or hazardous
substance, or that is otherwise regulated under any Environmental Law, including, without
limitation, any hazardous substance as such term is defined under the Comprehensive
Environmental Response, Compensation, and Liability Act, as amended, (b) petroleum,
petroleum products, crude oil, gasoline, fuel oil, motor oil, waste oil, diesel fuel, jet
fuel and other petroleum hydrocarbons, whether refined or unrefined, and (c) asbestos,
whether in a friable or a non-friable condition, and polychlorinated biphenyls.

     “Indemnified Party” means either the Partnership Group or the TETRA Entities, as the
case may be, each in its capacity as a party entitled to indemnification in accordance with
Article III.

     “Indemnifying Party” means either the Partnership Group or the TETRA Entities, as the
case may be, each in its capacity as a party from whom indemnification may be required in
accordance with Article III.

     “Mexico Services” has the meaning given to such term in Section 2.1(b).

     “MLP Sub” has the meaning given to such term in the definition of the Partnership
Group.

     “OPCO” has the meaning given to such term in the definition of the Partnership Group.

     “Other Losses” has the meaning given to such term in Section 3.2.

     “Partnership” has the meaning given to such term in the preamble to this Agreement.

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of the Partnership, dated as of the Closing Date, as such agreement is

3

 

in effect on the Closing Date, to which reference is hereby made for all purposes of
this Agreement.

     “Partnership Assets” means the wellhead compression-based production enhancement
services and any related well monitoring and automated sand separation services contracts
(including any subcontracts for the provision of such services), manufacturing operations,
customer relationships, Compressor Units, well monitoring assets, automated sand separation
assets and other related equipment and assets, including leases of real property, directly
or indirectly conveyed, contributed or otherwise transferred to the Partnership Group as of
the Closing Date pursuant to the Contribution Agreement.

     “Partnership Entities” means the General Partner and each member of the Partnership
Group; and “Partnership Entity” means any of the Partnership Entities.

     “Partnership Group” means the Partnership, Compressco Partners Sub, Inc., a Delaware
corporation (“MLP Sub”), Compressco Partners Operating, LLC, a Delaware limited liability
company (“OPCO”) and any Subsidiary of the Partnership, MLP Sub or OPCO.

     “Party” or “Parties” have the meanings given to such terms in the preamble to this
Agreement.

     “Person” has the meaning given to such term in the Partnership Agreement.

     “Services” has the meaning given to such term in Section 2.1(c).

     “SG&A Services” has the meaning given to such term in Section 2.1(c).

     “Subsidiary” has the meaning given to such term in the Partnership Agreement.

     “TETRA” has the meaning given to such term in the preamble to this Agreement.

     “TETRA de Mexico” has the meaning given to such term in Section 2.1.

     “TETRA Entities” means TETRA and any Person (other than the Partnership Entities)
controlled, directly or indirectly, by TETRA; and “TETRA Entity” means any one of the TETRA
Entities.

     “Voluntary Cleanup Program” means a program of the United States or a state of the
United States enacted pursuant to Environmental Laws that provides for a mechanism for the
written approval of, or authorization to conduct, voluntary remedial action for the
clean-up, removal or remediation of contamination that exceeds actionable levels established
pursuant to Environmental Laws.

     “Voting Securities” of a Person means securities of any class of such Person entitling
the holders thereof to vote in the election of, or to appoint, members of the board of
directors or other similar governing body of the Person; provided, that if such Person is

4

 

a limited partnership, Voting Securities of such Person shall be the general partner
interest in such Person.

ARTICLE II

SERVICES

     2.1 Services and Personnel Provided to The Partnership Group. On and as of the Closing Date, (i)
all of Compressco’s U.S. employees will become employees of the General Partner and be dedicated to
managing the Partnership Entities’ operations and conducting the Partnership Group’s business on a
full-time basis and (ii) the Partnership Group’s operations in Mexico will be supported on a
part-time basis by the employees of TETRA de Mexico, S.A. de C.V., an indirect wholly owned
subsidiary of TETRA (“TETRA de Mexico”). The Partnership will reimburse the General Partner and
TETRA for all direct and indirect expenses incurred by the General Partner, TETRA de Mexico and
TETRA on the Partnership Group’s behalf on the following terms:

     (a) The General Partner shall provide the Partnership Group with all personnel and
services reasonably necessary to manage the Partnership Entities’ operations and conduct the
Partnership Group’s business (such personnel and services, the “General Partner Services”).
The General Partner Services shall be substantially similar in nature and quality to the
services previously provided by Compressco’s U.S. employees to Compressco in connection with
Compressco’s management and operation of the Partnership Assets prior to the Closing Date
and no lower in quantity than is reasonably necessary to manage the Partnership Entities’
operations and conduct the Partnership Group’s business, even if greater in quantity than
previously provided prior to the Closing Date.

     (b) TETRA shall cause TETRA de Mexico to provide the Partnership Group with all
personnel and services reasonably necessary to conduct the Partnership Group’s Mexico-based
business (such personnel and services, the “Mexico Services”). The Mexico Services shall be
substantially similar in nature and quality to the services previously provided by TETRA de
Mexico’s employees to Compressco in connection with Compressco’s management and operation of
the Partnership Assets prior to the Closing Date and no lower in quantity than is reasonably
necessary to conduct the Partnership Group’s Mexico-based business, even if greater in
quantity than previously provided prior to the Closing Date.

     (c) TETRA shall provide the Partnership Entities with all corporate and general and
administrative services reasonably necessary to assist in the operation of the business of
the Partnership Group, which services may include (without limitation), at the Partnership’s
request, those services set forth on Schedule 2.1(c) (such services, collectively,
the “SG&A Services” and, together with the General Partner Services and the Mexico Services,
the “Services”). The SG&A Services shall be substantially similar in nature and quality to
the services previously provided by TETRA to Compressco in connection with Compressco’s
management and operation of the Partnership Assets prior to the Closing Date and no lower in
quantity than is reasonably necessary to assist in the

5

 

operation of the business of the Partnership Group, even if greater in quantity than
previously provided prior to the Closing Date.

     (d) In connection with providing the Services, the General Partner and TETRA shall be
entitled to allocate to the Partnership Group any costs and expenses incurred by the General
Partner, TETRA de Mexico or TETRA, as the case may be, on any reasonable basis determined by
the General Partner or TETRA, as the case may be.

     (e) The Partnership hereby agrees to reimburse the General Partner and TETRA for all
costs and expenses allocated to the Partnership Group in accordance with Section 2.1(d).

ARTICLE III

INDEMNIFICATION

     3.1 Environmental Indemnification.

     (a) Subject to Section 3.3, TETRA shall indemnify, defend and hold harmless the
Partnership Group from and against any environmental claims, losses and expenses (including,
without limitation, court costs and reasonable attorney’s and expert’s fees) of any and
every kind or character suffered or incurred by the Partnership Group by reason of or
arising out of:

     (i) any violation of Environmental Laws associated with ownership or operation
of the Partnership Assets; or

     (ii) any event or condition associated with ownership or operation of the
Partnership Assets (including, without limitation, the presence of Hazardous
Substances on, under, about or migrating to or from the Partnership Assets or the
disposal or release of Hazardous Substances generated by operation of the
Partnership Assets) including, without limitation, (A) the cost and expense of any
investigation, assessment, evaluation, monitoring, containment, cleanup, repair,
restoration, remediation, or other corrective action required or necessary under
Environmental Laws or to satisfy any applicable Voluntary Cleanup Program, (B) the
cost or expense of the preparation and implementation of any closure, remedial,
corrective action or other plans required or necessary under Environmental Laws or
to satisfy any applicable Voluntary Cleanup Program and (C) the cost and expense for
any environmental pre-trial, trial or appellate legal or litigation support work;
provided, in the case of clauses (A) and (B) such cost and expense shall not
include the costs of and associated with project management and soil and ground
water monitoring;

but only to the extent that such violation complained of under Section 3.1(a)(i) or such
events or conditions included under Section 3.1(a)(ii) occurred before or existed on the
Closing Date (collectively, “Covered Environmental Losses”).

     (b) The Partnership Group shall indemnify, defend and hold harmless the TETRA Entities
from and against any Covered Environmental Losses suffered or

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incurred by TETRA and its Affiliates relating to the Partnership Assets (as well as any
assets acquired by the Partnership after the Closing Date) occurring on or after the Closing
Date, except to the extent that the Partnership Group is indemnified with respect to any of
such Covered Environmental Losses under Section 3.1(a).

     (c) Except for claims for Covered Environmental Losses made before the third
anniversary of the Closing Date, which shall not terminate, all indemnification obligations
in this Section 3.1 shall terminate on the third anniversary of the Closing Date.

	3.2	 	Additional Indemnification.

In addition to and not in limitation of the indemnification provided under Section 3.1(a), subject
to Section 3.3 and except as otherwise set forth in any Exhibit hereto, TETRA shall indemnify,
defend and hold harmless the Partnership Group from and against any claims, losses and expenses
(including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and
every kind or character, known or unknown, fixed or contingent, suffered or incurred by the
Partnership Group (“Other Losses”) by reason of or arising out of:

     (i) failure to convey good and defensible title to the Partnership Assets to
one or more members of the Partnership Group to the extent any such failure renders
the Partnership Group unable to use or operate the Partnership Assets in
substantially the same manner as they were operated by the TETRA Entities
immediately prior to the Closing Date; or

     (ii) all federal, state and local income tax liabilities attributable to the
operation of the Partnership Assets prior to the Closing Date, including any such
income tax liabilities of TETRA that may result from the consummation of the
formation transactions for the Partnership Entities;

provided, however, that in the case of clause (i) above, such indemnification obligations
shall terminate on the third anniversary of the Closing Date; and that in the case of clause
(ii) above, such indemnification obligations shall survive until 60 days after the
termination of any applicable statute of limitations.

     3.3 Limitations Regarding Indemnification.

     (a) The aggregate liability of TETRA under Section 3.1(a) shall not exceed $5.0
million.

     (b) No claims may be made against TETRA for indemnification pursuant to Sections 3.1(a)
or 3.2 unless the aggregate dollar amount of the Losses suffered or incurred by the
Partnership Group exceeds $250,000, after such time TETRA shall be liable for the full
amount of such claims, subject to the limitations of Section 3.3(a).

     (c) Notwithstanding anything herein to the contrary, in no event shall TETRA have any
indemnification obligations under Section 3.1(a) for claims made as a result of

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additions to or modifications after the Closing Date of Environmental Laws existing as
of the Closing Date or new Environmental Laws promulgated after the Closing Date.

     3.4 Indemnification Procedures

     (a) The Indemnified Party agrees that promptly after it becomes aware of facts giving
rise to a claim for indemnification under this Article III, it will provide notice thereof
in writing to the Indemnifying Party, specifying the nature of and specific basis for such
claim.

     (b) The Indemnifying Party shall have the right to control all aspects of the defense
of (and any counterclaims with respect to) any claims brought against the Indemnified Party
that are covered by the indemnification under this Article III, including, without
limitation, the selection of counsel, determination of whether to appeal any decision of any
court and the settling of any such matter or any issues relating thereto; provided, however,
that no such settlement shall be entered into without the consent of the Indemnified Party
(with the concurrence of the Conflicts Committee in the case of the Partnership Group)
unless it includes a full release of the Indemnified Party from such matter or issues, as
the case may be, and does not include the admission of fault, culpability or a failure to
act, by or on behalf of such Indemnified Party.

     (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party, with
respect to all aspects of the defense of any claims covered by the indemnification under
this Article III, including, without limitation, the prompt furnishing to the Indemnifying
Party of any correspondence or other notice relating thereto that the Indemnified Party may
receive, permitting the name of the Indemnified Party to be utilized in connection with such
defense, the making available to the Indemnifying Party of any files, records or other
information of the Indemnified Party that the Indemnifying Party considers relevant to such
defense and the making available to the Indemnifying Party, at no cost to the Indemnifying
Party, of any employees of the Indemnified Party; provided, however, that in connection
therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact
thereof on the operations of the Indemnified Party and further agrees to endeavor to
maintain the confidentiality of all files, records and other information furnished by the
Indemnified Party pursuant to this Section 3.4. In no event shall the obligation of the
Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately
preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire
and pay for counsel in connection with the defense of any claims covered by the
indemnification set forth in this Article III; provided, however, that the Indemnified Party
may, at its own option, cost and expense, hire and pay for counsel in connection with any
such defense. The Indemnifying Party agrees to keep any such counsel hired by the
Indemnified Party informed as to the status of any such defense, but the Indemnifying Party
shall have the right to retain sole control over such defense.

     (d) In determining the amount of any loss, cost, damage or expense for which the
Indemnified Party is entitled to indemnification under this Agreement, the gross amount of
the indemnification will be reduced by (i) any insurance proceeds realized by

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the Indemnified Party and (ii) all amounts recovered by the Indemnified Party under
contractual indemnities from third Persons. The Partnership hereby agrees to use
commercially reasonable efforts to realize any applicable insurance proceeds or amounts
recoverable under such contractual indemnities.

ARTICLE IV

MISCELLANEOUS

     4.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by
the laws of the State of Texas, excluding any conflicts-of-law rule or principle that might refer
the construction or interpretation of this Agreement to the laws of another state. Each Party
hereby submits to the jurisdiction of the state and federal courts in the State of Texas and to
venue in Texas.

     4.2 Notice. All notices, requests or consents provided for or permitted to be given pursuant to
this Agreement must be in writing and must be given by depositing same in the United States mail,
addressed to the Person to be notified, postpaid, and registered or certified with return receipt
requested or by delivering such notice in person or by facsimile to such Party. Notice given by
personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile shall
be effective upon actual receipt if received during the recipient’s normal business hours, or at
the beginning of the recipient’s next Business Day after receipt if not received during the
recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement
shall be sent to or made at the address set forth below or at such other address as such Party may
stipulate to the other Parties in the manner provided in this Section 4.2.

	 	 	 

	 

	 	For notices to any of the TETRA Entities:
	 
	 	 
	 

	 	TETRA Technologies, Inc.
	 

	 	24955 Interstate 45 North
	 

	 	The Woodlands, TX 77380
	 

	 	Phone: 281-367-1983
	 

	 	Fax: 281-364-4398
	 

	 	Attention: General Counsel
	 
	 	 
	 

	 	For notices to any of the Partnership Entities:
	 
	 	 
	 

	 	Compressco Partners, L.P.
	 

	 	101 Park Avenue, Suite 1200
	 

	 	Oklahoma City, OK 73102
	 

	 	Phone: 405-677-0221
	 

	 	Fax: ____________
	 

	 	Attention: President

     4.3 Entire Agreement. This Agreement constitutes the entire agreement of the Parties relating to the matters contained
herein, superseding all prior contracts or agreements, whether oral or written, relating to the
matters contained herein.

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     4.4 Termination. This Agreement, other than the provisions set forth in Articles III and IV
hereof, shall terminate upon a Change of Control of the General Partner.

     4.5 Effect of Waiver or Consent. No waiver or consent, express or implied, by any Party to or
of any breach or default by any Person in the performance by such Person of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or
default in the performance by such Person of the same or any other obligations of such Person
hereunder. Failure on the part of a Party to complain of any act of any Person or to declare any
Person in default, irrespective of how long such failure continues, shall not constitute a waiver
by such Party of its rights hereunder until the applicable statute of limitations period has run.

     4.6 Amendment or Modification. This Agreement may be amended or modified from time to time
only by the written agreement of all the Parties; provided, however, that the Partnership may not,
without the prior approval of the Conflicts Committee, agree to any amendment or modification of
this Agreement that the General Partner determines will adversely affect the holders of Common
Units. Each such instrument shall be reduced to writing and shall be designated on its face an
“Amendment” or an “Addendum” to this Agreement.

     4.7 Assignment; Third Party Beneficiaries. Any Party shall have the right to assign its
rights under this Agreement without the consent of any other Party, but no Party shall have the
right to assign its obligations under this Agreement without the consent of the other Parties.
Subject to the limitations set forth in Section 4.14, each of the Parties hereto specifically
intends that each entity comprising the TETRA Entities and each entity comprising the Partnership
Entities, as applicable, whether or not a Party to this Agreement, shall be entitled to assert
rights and remedies hereunder as third-party beneficiaries hereto with respect to those provisions
of this Agreement affording a right, benefit or privilege to any such entity.

     4.8 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, with the same effect as if all signatory Parties had signed the same
document. All counterparts shall be construed together and shall constitute one and the same
instrument.

     4.9 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance
shall be held invalid or unenforceable to any extent, the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be affected thereby and
shall be enforced to the greatest extent permitted by law.

     4.10 Gender, Parts, Articles and Sections. Whenever the context requires, the gender of all
words used in this Agreement shall include the masculine, feminine and neuter, and the number of
all words shall include the singular and plural. All references to Article numbers and Section
numbers refer to Articles and Sections of this Agreement.

     4.11 Further Assurances. In connection with this Agreement and all transactions contemplated
by this Agreement, each Party agrees to execute and deliver such additional documents and
instruments and to perform such additional acts as may be necessary or

10

 

appropriate to effectuate,
carry out and perform all of the terms, provisions and conditions of this Agreement and all such
transactions.

     4.12 Withholding or Granting of Consent. Except as otherwise expressly provided in this
Agreement, each Party may, with respect to any consent or approval that it is entitled to grant
pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled
discretion, for any reason, and subject to such conditions as it shall deem appropriate.

     4.13 Laws and Regulations. Notwithstanding any provision of this Agreement to the contrary,
no Party shall be required to take any act, or fail to take any act, under this Agreement if the
effect thereof would be to cause such Party to be in violation of any applicable law, statute, rule
or regulation.

     4.14 Negation of Rights of Limited Partners, Assignees and Third Parties. The provisions of
this Agreement are enforceable solely by the Parties, and no shareholder, limited partner, member,
or assignee of TETRA, the General Partner or the Partnership or other Person shall have the right,
separate and apart from TETRA, the General Partner or the Partnership, to enforce any provision of
this Agreement or to compel any Party to comply with the terms of this Agreement.

     4.15 No Recourse Against Officers or Directors. For the avoidance of doubt, the provisions of
this Agreement shall not give rise to any right of recourse against any officer or director of
TETRA or any Partnership Entity.

(Signature pages follow.)

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     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the
Closing Date.

	 	 	 	 	 	 	 

	 	 	TETRA TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMPRESSCO PARTNERS GP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

	 	 	 	 	 	 	 

	 	 	COMPRESSCO PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Compressco Partners GP Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Signature
Page — Omnibus Agreement

 

 

SCHEDULE 2.1(c)

Services

Pursuant to Section 2.1(c) of this Agreement, TETRA shall provide the Partnership Entities with
corporate and general and administrative services reasonably necessary to assist in the operation
of the business of the Partnership Group, which services shall include, without limitation, the
following services:

	 	(a)	 	secretarial and general office services;
	 
	 	(b)	 	employee benefits administration services (including, without limitation, equity plan
administration services);
	 
	 	(c)	 	investor relations services;
	 
	 	(d)	 	human resources and payroll processing services;
	 
	 	(e)	 	financial services;
	 
	 	(f)	 	information and technology services;
	 
	 	(g)	 	audit services;
	 
	 	(h)	 	legal services;
	 
	 	(i)	 	engineering and technical services;
	 
	 	(j)	 	insurance and risk management services;
	 
	 	(k)	 	global supply chain and procurement services;
	 
	 	(l)	 	accounting services;
	 
	 	(m)	 	tax services;
	 
	 	(n)	 	health, safety and environmental (HSE) services;
	 
	 	(o)	 	facilities management services;
	 
	 	(p)	 	international business development; and
	 
	 	(q)	 	general sales/marketing services.

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