Document:

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                 PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

                                     among

                 BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.

                                      and

                                 THE PURCHASER
                    IDENTIFIED ON THE SIGNATURE PAGE HERETO

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                             Dated: April 15, 1999

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                               TABLE OF CONTENTS
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ARTICLE 1         DEFINITIONS
         1.1      Definitions.....................................................................................1
         1.2      Accounting Terms; Financial Statements..........................................................5
         1.3      Knowledge of the Company........................................................................5

ARTICLE 2         PURCHASE AND SALE OF PREFERRED STOCK AND WARRANT
         2.1      Purchase and Sale of Preferred Stock and Warrant................................................5
         2.2      Use of Proceeds.................................................................................5
         2.3      Closing.........................................................................................5

ARTICLE 3         REPRESENTATIONS AND WARRANTIES OF THE COMPANY
         3.1      Corporate Existence and Power...................................................................6
         3.2      Authorization; No Contravention.................................................................6
         3.3      Governmental Authorization; Third Party Consents................................................6
         3.4      Binding Effect..................................................................................6
         3.5      Litigation......................................................................................7
         3.6      Compliance with Laws............................................................................7
         3.7      Capitalization..................................................................................7
         3.8      No Default or Breach; Contractual Obligations...................................................8
         3.9      Financial Statements............................................................................8
         3.10     Taxes...........................................................................................8
         3.11     No Material Adverse Change; Ordinary Course of Business.........................................8
         3.12     Investment Company..............................................................................9
         3.13     Private Offering................................................................................9
         3.14     Labor Relations.................................................................................9
         3.15     Employee Benefit Plans..........................................................................9
         3.16     Title to Assets.................................................................................9
         3.17     Liabilities.....................................................................................9
         3.18     Insurance......................................................................................10
         3.19     Environmental Matters..........................................................................10
         3.20     Broker's, Finder's or Similar Fees.............................................................10

ARTICLE 4         REPRESENTATIONS AND WARRANTIES OF PURCHASER
         4.1      Existence and Power............................................................................10
         4.2      Authorization; No Contravention................................................................10
         4.3      Governmental Authorization; Third Party Consents...............................................11
         4.4      Binding Effect.................................................................................11
         4.5      Purchase for Own Account.......................................................................11
         4.6      Restricted Securities..........................................................................11
         4.7      Accredited Investor Status.....................................................................12
         4.8      Source of Funds................................................................................12
         4.9      Litigation.....................................................................................12
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         4.10     Broker's, Finder's or Similar Fees.............................................................12

ARTICLE 5         CONDITIONS TO THE OBLIGATION OF PURCHASER TO CLOSE
         5.1      Representations and Warranties.................................................................12
         5.2      Compliance with this Agreement.................................................................12
         5.3      Secretary's Certificate........................................................................13
         5.4      Officer's Certificate..........................................................................13
         5.5      Documents......................................................................................13
         5.6      Filing of Certificate of Designations..........................................................13
         5.7      Purchased Shares...............................................................................13
         5.9      Participation Rights Agreement.................................................................13
         5.10     Registration Rights Agreement..................................................................13
         5.11     Letter Agreement...............................................................................13
         5.12     Opinion of Counsel.............................................................................14
         5.13     Consents and Approvals.........................................................................14
         5.14     No Material Judgment or Order..................................................................14
         5.15     No Litigation..................................................................................14
         5.16     No Material Adverse Change.....................................................................14

ARTICLE 6         CONDITIONS TO THE OBLIGATION OF THE COMPANY TO CLOSE
         6.1      Representations and Warranties.................................................................14
         6.2      Compliance with this Agreement.................................................................14
         6.3      Certificates...................................................................................14
         6.4      Payment of Purchase Price......................................................................15
         6.5      Participation Rights Agreement.................................................................15
         6.6      Registration Agreement.........................................................................15
         6.7      Letter Agreement...............................................................................15
         6.8      Consents and Approvals.........................................................................15
         6.9      No Material Judgment or Order..................................................................15
         6.10     No Litigation..................................................................................15

ARTICLE 7         INDEMNIFICATION
         7.1      Company Indemnification........................................................................16
         7.2      Purchaser Indemnification......................................................................16
         7.3      Notification...................................................................................17
         7.4      Limitation on Indemnification..................................................................18

ARTICLE 8         POST CLOSING COVENANTS
         8.1      Redemption of Junior Preferred Stock...........................................................18

ARTICLE 9         TERMINATION OF AGREEMENT
         9.1      Termination....................................................................................18
         9.2      Survival.......................................................................................18

ARTICLE 10        MISCELLANEOUS
         10.1     Survival of Representations and Warranties.....................................................19
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<S>                                                                                                             <C>
         10.2     Notices........................................................................................19
         10.3     Successors and Assigns; Third Party Beneficiaries..............................................19
         10.4     Amendment and Waiver...........................................................................19
         10.5     Counterparts...................................................................................19
         10.6     Headings.......................................................................................19
         10.7     GOVERNING LAW..................................................................................20
         10.8     JURISDICTION; VENUE............................................................................20
         10.9     Severability...................................................................................20
         10.10    Rules of Construction..........................................................................20
         10.11    Entire Agreement...............................................................................20
         10.12    Fees...........................................................................................20
         10.13    Confidentiality................................................................................20
         10.14    Trade Secrets..................................................................................21
         10.15    Further Assurances.............................................................................22
         10.16    Company Information............................................................................22
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                                    EXHIBITS

A-1               Restated Certificate of Incorporation
A-2               Bylaws
B                 Form of Certificate of Designations of Series A Stock
C                 Form of Participation Rights Agreement
D                 Form of Registration Rights Agreement
E                 Form of Warrant
F                 Form of Letter Agreement

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                                   SCHEDULES

2                 Purchased Shares and Purchase Price
3.3               Governmental Authorizations; Third Party Consents
3.5               Litigation
3.7               Outstanding Options of the Company
3.8               Defaults or Breaches of Contractual Obligations
3.10              Taxes
3.11              Transactions Outside the Ordinary Course of Business
3.14              Labor Relations
3.15              Employee Benefit Plans
3.16              Title to Assets of the Company
3.17              Liabilities
3.18              Insurance
3.20              Brokers, Finders or Similar Fees

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THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT, OR AN OPINION OF
COUNSEL, SATISFACTORY TO THE ISSUER HEREOF, TO THE EFFECT THAT REGISTRATION IS
NOT REQUIRED UNDER THE ACT.

                              WARRANT TO PURCHASE
                                COMMON STOCK OF
                 BOOTS & COOTS INTERNATIONAL WELL CONTROL INC.

Date of Issuance: March 20, 2000                              Warrant No. 2000-1

         This certifies that, for value received, BOOTS & COOTS INTERNATIONAL
WELL CONTROL, INC., a Delaware corporation (the "Company"), grants to the
DONALD AND SHELLEY MOOREHEAD TRUST, or registered assigns (the "Registered
Holder"), the right to subscribe for and purchase from the Company, at the
price of $1.25 per share (the "Exercise Price"), from and after 9:00 a.m.,
Houston time, on March 20, 2000 (the "Exercise Commencement Date") and to and
including 5:00 p.m., Houston time on March 19, 2005 (the "Expiration Date"),
FOUR HUNDRED FIFTY THOUSAND (450,000) shares (the "Warrant Shares"), of the
Company's common stock, par value $0.00001 per share (the "Common Stock"),
subject to the provisions and upon the terms and conditions herein set forth.
The Exercise Price and the number of Warrant Shares purchasable upon exercise
of this Warrant are subject to adjustment from time to time as provided in
Section 7 hereof.

         SECTION 1. REGISTRATION. The Company shall register this Warrant, upon
records to be maintained by the Company for that purpose (the "Warrant
Records"), in the name of the Registered Holder. The Company may deem and treat
the Registered Holder as the absolute owner of this Warrant for the purpose of
any exercise hereof or any distribution to the Registered Holder, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.

         SECTION 2. REGISTRATION OF TRANSFERS AND EXCHANGES.

         (a) Subject to Section 11 hereof, the Company shall register the
transfer of this Warrant, in whole or in part, upon records to be maintained by
the Company for that purpose, upon surrender of this Warrant, with the Form of
Assignment attached hereto completed and duly endorsed by the Registered
Holder, to the Company at the office specified in or pursuant to Section 3(b).
Upon any such registration of transfer, a new Warrant, in substantially the
form of this Warrant, evidencing the Common Stock purchase rights so
transferred shall be issued to the transferee and a new Warrant, in similar
form, evidencing the remaining Common Stock purchase rights not so transferred,
if any, shall be issued to the Registered Holder.

         (b) This Warrant is exchangeable, upon the surrender hereof by the
Registered Holder at the office of the Company specified in or pursuant to
Section 3(b) hereof, for new Warrants, in substantially the form of this
Warrant evidencing, in the aggregate, the right to purchase the number of
Warrant Shares which may then be purchased hereunder, each of such new Warrants
to be dated the date of such exchange and to represent the right to purchase
such number of Warrant Shares as shall be designated by the Registered Holder
at the time of such surrender.

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         SECTION 3. DURATION AND EXERCISE OF THIS WARRANT.

         (a) This Warrant shall be exercisable by the Registered Holder, in
whole, or from time to time in part, on any business day before 5:00 p.m.,
Houston time, during the period beginning on the Exercise Commencement Date and
ending on the Expiration Date. At 5:00 p.m., Houston time, on the Expiration
Date, this Warrant, to the extent not previously exercised, shall become void
and of no further force or effect.

         (b) Subject to Sections 4 and 11(a) hereof, upon exercise or surrender
of this Warrant, with the Form of Election to Purchase attached hereto
completed and duly endorsed by the Registered Holder, to the Company at its
office at 777 Post Oak, 8th Floor, Houston Texas 77056, Attention: Chief
Executive Officer, or at such other address as the Company may specify in
writing to the Registered Holder, and upon payment of the Exercise Price
multiplied by up to the number of Warrant Shares then issuable upon exercise of
this Warrant in lawful money of the United States of America (except as
otherwise provided for in Section 3(c) hereof), all as specified by the
Registered Holder in the Form of Election to Purchase, the Company shall
promptly issue and cause to be delivered to or upon the written order of the
Registered Holder, and in such name or names as the Registered Holder may
designate, a certificate for the Warrant Shares issued upon such exercise. Any
person so designated in the Form of Election to Purchase, duly endorsed by the
Registered Holder, as the person to be named on the certificates for the
Warrant Shares, shall be deemed to have become holder of record of such Warrant
Shares, evidenced by such certificates, as of the Date of Exercise (as
hereinafter defined) of such Warrant.

         (c) The Registered Holder may pay the applicable Exercise Price
pursuant to Section 3(b), at the option of the Registered Holder, either (i) in
cash or by cashier's or certified bank check payable to the Company in an
amount equal to the product of the Exercise Price multiplied by the number of
Warrant Shares being purchased upon such exercise (the "Aggregate Exercise
Price"), or (ii) by wire transfer of immediately available funds to the account
which shall be indicated in writing by the Company to the Registered Holder.

         (d) The "Date of Exercise" of any Warrant means the date on which the
Company shall have received (i) this Warrant, with the Form of Election to
Purchase attached hereto appropriately completed and duly endorsed, and (ii)
payment in full of the Aggregate Exercise Price as provided herein.

         (e) This Warrant shall be exercisable either as an entirety or, from
time to time, for part only of the number of Warrant Shares which are issuable
hereunder. If this Warrant shall have been exercised only in part, the Company
shall, at the time of delivery of the certificates for the Warrant Shares
issued pursuant to such exercise, deliver to the Registered Holder a new
Warrant evidencing the rights to purchase the remaining Warrant Shares, which
Warrant shall be substantially in the form of this Warrant.

         SECTION 4. PAYMENT OF TAXES AND EXPENSES.

         (a) The Company will pay all expenses and taxes (other than any
federal or state income tax or similar obligations of the Registered Holder)
and other governmental charges attributable to

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the preparation, execution, issuance and delivery of this Warrant, any new
Warrant and the Warrant Shares; provided, however, that the Company shall not
be required to pay any tax in respect of the transfer of this Warrant or the
Warrant Shares, or the issuance or delivery of certificates for Warrant Shares
upon the exercise of this Warrant, to a person or entity other than a
Registered Holder or an Affiliate (as hereinafter defined) of such Registered
Holder.

         (b) An "Affiliate" of any person or entity means any other person or
entity directly or indirectly controlling, controlled by or under direct or
indirect common control with such person or entity.

         SECTION 5. MUTILATED OR MISSING WARRANT CERTIFICATE. If this Warrant
shall be mutilated, lost, stolen or destroyed, upon request by the Registered
Holder, the Company will issue, in exchange for and upon cancellation of the
mutilated Warrant, or in substitution for the lost, stolen or destroyed
Warrant, a new Warrant, in substantially the form of this Warrant, of like
tenor, but, in the case of loss, theft or destruction, only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or
destruction of this Warrant and, if requested by the Company, indemnity also
reasonably satisfactory to it.

         SECTION 6. RESERVATION, LISTING AND ISSUANCE OF WARRANT SHARES.

         (a) The Company will at all times have authorized, and reserve and
keep available, free from preemptive rights, for the purpose of enabling it to
satisfy any obligation to issue Warrant Shares upon the exercise of the rights
represented by this Warrant, the number of Warrant Shares deliverable upon
exercise of this Warrant. The Company will, at its expense, use its best
efforts to cause such shares to be included in or listed on (subject to
issuance or notice of issuance of Warrant Shares) all markets or stock
exchanges in or on which the Common Stock is included or listed not later than
the date on which the Common Stock is first included or listed on any such
market or exchange and will thereafter maintain such inclusion or listing of
all shares of Common Stock from time to time issuable upon exercise of this
Warrant.

         (b) The Company covenants that all Warrant Shares will, upon issuance
in accordance with the terms of this Warrant, be (i) duly authorized, fully
paid and nonassessable, and (ii) free from all taxes with respect to the
issuance thereof and from all liens, charges and security interests.

         SECTION 7. ADJUSTMENTS OF EXERCISE PRICE AND WARRANT SHARES.

         (a) The Exercise Price and number of Warrant Shares that may be
purchased hereunder is subject to change or adjustment from time to time as
hereinafter provided.

         (b) Subdivisions or Combinations of Stock. In case the Company shall
at any time subdivide the outstanding shares of Common Stock into a greater
number of shares, the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced; and conversely, in case the
outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination
shall be proportionately increased.

         (c) Adjustments for Consolidation, Merger, Sale of Assets,
Reorganization, etc. In case the Company (i) consolidates with or mergers into
any other corporation and is not the continuing

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or surviving corporation of such consolidation of merger, or (ii) permits any
other corporation to consolidate with or merge into the Company and the Company
is the continuing or surviving corporation but, in connection with such
consolidation or merger, the Common Stock is changed into or exchanged for
stock or other securities of any other corporation or cash or any other assets,
or (iii) transfers all or substantially all of its properties and assets to any
other corporation, or (iv) effects a capital reorganization or reclassification
of the capital stock of the Company in such a way that holders of Common Stock
shall be entitled to receive stock, securities, cash and/or assets with respect
to or in exchange for Common Stock, then, and in each such case, proper
provision shall be made so that, upon the basis and upon the terms and in the
manner provided in this subsection (c), the Registered Holder, upon the
exercise of this Warrant at any time after the consummation of such
consolidation, merger, transfer, reorganization or reclassification, shall be
entitled to receive (at the aggregate Exercise Price in effect for all shares
of Common Stock issuable upon such exercise immediately prior to such
consummation as adjusted to the time of such transaction), in lieu of shares of
Common Stock issuable upon such exercise prior to such consummation, the stock
and other securities, cash and/or assets to which such holder would have been
entitled upon such consummation if the Registered Holder had so exercised this
Warrant immediately prior thereto (subject to adjustments subsequent to such
corporate action as nearly equivalent as possible to the adjustments provided
for in this Section).

         (d) Notices. In case at any time:

                  (i) the Company shall declare any cash dividend on its Common
         Stock;

                  (ii) the Company shall pay any dividend payable in stock upon
         its Common Stock or make any distribution (other than regular cash
         dividends) to the holders of its Common Stock;

                  (iii) the Company shall offer for subscription pro rata to
         the holders of its Common Stock any additional shares of stock of any
         class or other rights;

                  (iv) the Company shall authorize the distribution to all
         holders of its Common Stock of evidences of its indebtedness or assets
         (other than cash dividends or cash distributions payable out of
         earnings or earned surplus or dividends payable in Common Stock);

                  (v) there shall be any capital reorganization, or
         reclassification of the capital stock of the Company, or consolidation
         or merger of the Company with another corporation (other than a
         subsidiary of the Company in which the Company is the surviving or
         continuing corporation and no change occurs in the Company's Common
         Stock), or sale of all or substantially all of its assets to another
         corporation; or

                  (vi) there shall be a voluntary or involuntary dissolution,
         liquidation, bankruptcy, assignment for the benefit of creditors, or
         winding up of the Company;

then, in any one or more of said cases the Company shall give written notice,
addressed to the Registered Holder at the address of such Registered Holder as
shown on the books of the Company, of (1) the date on which the books of the
Company shall close or a record shall be taken for such dividend, distribution
or subscription rights, or (2) the date (or, if not then known, a reasonable
approximation thereof by the Company) on which such reorganization,
reclassification,

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consolidation, merger, sale, dissolution, liquidation, bankruptcy, assignment
for the benefit of creditors, winding up or other action, as the case may be,
shall take place. Such notice shall also specify (or, if not then known,
reasonably approximate) the date as of which the holders of Common Stock of
record shall participate in such dividend, distribution or subscription rights,
or shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation, bankruptcy, assignment for the benefit
of creditors, winding up, or other action, as the case may be. Such written
notice shall be given at least thirty (30) days prior to the action in question
and not less than thirty (30) days prior to the record date or the date on
which the Company's transfer books are closed in respect thereto. Such notice
shall also state that the action in question or the record date is subject to
the effectiveness of a registration statement under the Act, or to a favorable
vote of stockholders, if either is required.

         SECTION 8. NO RIGHTS OR LIABILITIES AS A STOCKHOLDER. The Registered
Holder shall not be entitled to vote or be deemed the holder of Common Stock or
any other securities of the Company which may at any time be issuable on the
exercise hereof, nor shall anything contained herein be construed to confer
upon the holder of this Warrant, as such, the rights of a stockholder of the
Company or the right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or give or withhold consent
to any corporate action or to receive notice of meetings or other actions
affecting stockholders (except as provided herein), or to receive dividends or
subscription rights or otherwise, until the Date of Exercise shall have
occurred and then only with respect to the Warrant Shares purchased pursuant to
such exercise. No provision of this Warrant, in the absence of affirmative
action by the Registered Holder hereof to purchase shares of Common Stock, and
no mere enumeration herein of the rights and privileges of the Registered
Holder, shall give rise to any liability of such holder for the Exercise Price
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

         SECTION 9. FRACTIONAL WARRANT SHARES. The Company shall not be
required to issue fractions of Warrant Shares upon exercise of the Warrant or
to distribute certificates which evidence fractional Warrant Shares. If any
fraction of a Warrant Share would, except for the provisions of this Section
10, be issuable on the exercise of any Warrant (or specified portion thereof),
the Company shall pay to the Registered Holder an amount in cash determined by
the board of directors of the Company to be fair and just consideration for a
share of Common Stock of the Company multiplied by such fraction.

         SECTION 10. TRANSFER RESTRICTIONS; REGISTRATION OF THE WARRANT AND
WARRANT SHARES.

         (a) Neither the Warrant nor the Warrant Shares have been registered
under the Act. The Registered Holder, by acceptance hereof, represents that it
is acquiring this Warrant to be issued to it for its own account and not with a
view to the distribution thereof, and agrees not to sell, transfer, pledge or
hypothecate this Warrant, any purchase rights evidenced hereby or any Warrant
Shares unless a registration statement is effective for this Warrant or the
Warrant Shares under the Act or, in the opinion of such Registered Holder's
counsel reasonably satisfactory to the Company, a copy of which opinion shall
be delivered to the Company, such transaction is exempt from the registration
requirements of the Act.

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         (b) Subject to the provisions of the following paragraph of this
Section 10, each Certificate for Warrant Shares shall be stamped or otherwise
imprinted with a legend in substantially the following form:

                  THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"), OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
                  OFFERED FOR SALE, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
                  IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR
                  SUCH SECURITIES UNDER THE ACT, OR AN OPINION OF COUNSEL,
                  SATISFACTORY TO THE ISSUER HEREOF, TO THE EFFECT THAT
                  REGISTRATION IS NOT REQUIRED UNDER THE ACT.

         (c) The restrictions and requirements set forth in the foregoing
paragraph shall apply with respect to Warrant Shares unless and until such
Warrant Shares are sold or otherwise transferred pursuant to an effective
registration statement under the Act or are otherwise no longer subject to the
restrictions of the Act, at which time the Company agrees to promptly cause
such restrictive legends to be removed and stop transfer restrictions
applicable to such Warrant Shares to be rescinded.

         SECTION 11. NOTICES. All notices, requests, demands and other
communications relating to this Warrant shall be in writing and shall be deemed
to have been duly given if delivered personally or sent by United States
certified or registered first-class mail, postage prepaid, return receipt
requested, to the parties hereto at the following addresses or at such other
address as any party hereto shall hereafter specify by notice to the other
party hereto:

         (a) If to the Registered Holder of this Warrant or the holder of the
Warrant Shares, addressed to the address of such Registered Holder or holder as
set forth on books of the Company or otherwise furnished by the Registered
Holder or holder to the Company.

         If to the Company, addressed to:

         Boots & Coots International Well Control, Inc.
         777 Post Oak Blvd., 8th Floor
         Houston, Texas 77056

         SECTION 12. BINDING EFFECT. This Warrant shall be binding upon and
inure to the sole and exclusive benefit of the Company, its successors and
assigns, and the holder or holders from time to time of this Warrant and the
Warrant Shares.

         SECTION 13. SURVIVAL OF RIGHTS AND DUTIES. This Warrant shall
terminate and be of no further force and effect on the earlier of (i) 5:00
p.m., Houston time, on the Expiration Date and (ii) the date on which this
Warrant and all purchase rights evidenced hereby have been exercised.

         SECTION 14. GOVERNING LAW. This Warrant shall be construed in
accordance with and governed by the laws of the State of Texas.

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         SECTION 15. SECTION HEADINGS. The Section headings in this Warrant are
for purposes of convenience only and shall not constitute a part hereof.

         SECTION 16. AMENDMENT OR WAIVER. This Warrant and any term hereof may
be amended, waived, discharged or terminated only by and with the written
consent of the Company and the holder of this Warrant.

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         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
under its corporate seal by its officers thereunto duly authorized as of the
date hereof.

                                       BOOTS & COOTS INTERNATIONAL WELL CONTROL,
                                       INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       ATTEST:

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

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                          FORM OF ELECTION TO PURCHASE

                 (To Be Executed Upon Exercise of this Warrant)

To Boots & Coots International Well Control, Inc.:

         The undersigned, the record holder of the attached Warrant (Warrant
No. ___), hereby irrevocably elects to exercise the right, represented by the
attached Warrant, to purchase ___________ of the Warrant Shares and herewith
tenders payment for such Warrant Shares to the order of Boots & Coots
International Well Control, Inc. of $_________ representing the full purchase
price for such shares at the price per share provided for in the attached
Warrant and the delivery of any applicable taxes payable by the undersigned
pursuant to such Warrant.

         In lieu of paying the purchase price as provided in the preceding
paragraph, the undersigned will/will not (circle appropriate word(s)) make a
cashless exercise pursuant to Section 3(c) of the attached Warrant.

         The undersigned requests that certificates for such shares be issued
in the name of

                                    PLEASE INSERT SOCIAL SECURITY OR TAX
-------------------------------     IDENTIFICATION NUMBER

-------------------------------     -------------------------------

-------------------------------

-------------------------------
(Please print name and address)

         In the event that not all of the purchase rights represented by the
attached Warrant are exercised, a new Warrant, substantially identical to the
attached Warrant, representing the rights formerly represented by the attached
Warrant which have not been exercised, shall be issued in the name of and
delivered to

                              --------------------------------------------------
                              (Please print name)

                              --------------------------------------------------

                              --------------------------------------------------
                              (Please print address)

Dated:                     Name of Holder (Print):
       ------------------                         ------------------------------

                                             By:
                                                --------------------------------
                                             Name:
                                                  ------------------------------
                                             Title:
                                                   -----------------------------

<PAGE>   16

                               FORM OF ASSIGNMENT

         FOR VALUE RECEIVED, _______________________ hereby sells, assigns and
transfers to each assignee set forth below all of the rights of the undersigned
under the attached Warrant (Warrant No. _____) with respect to the number of
shares of Common Stock covered thereby set forth opposite the name of such
assignee unto:

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                                                       Number of Shares of
            Name of Assignee           Address            Common Stock
            ----------------           -------         -------------------
<S>                                    <C>             <C>

</TABLE>

         If the total of said purchase rights represented by the attached
Warrant shall not be assigned, the undersigned requests that a new Warrant
evidencing the purchase rights not so assigned be issued in the name of and
delivered to the undersigned.

Dated:                           Name of Holder (Print):
       ----------------                                 -----------------------

By:
   ------------------------------
      Name:
           ----------------------------
              Title:
                    ---------------------------<PAGE>   1

                              SETTLEMENT AGREEMENT

         This Settlement Agreement ("Agreement" or "Settlement Agreement"), is
entered into by Boots & Coots International Well Control, Inc. ("Boots & Coots")
and the Donald and Shelley Moorehead Charitable Trust (the "Trust") on this day,
March 20, 2000. Boots & Coots and the Trust shall be referred to individually by
name or as the "Party," or collectively as the "Parties."

         1. Acknowledgments. The Parties agree upon and acknowledge the
following facts as the basis for this Settlement Agreement:

            A.    Boots & Coots is a Delaware corporation that has 5,000,000
                  authorized shares of preferred stock ("Preferred Stock"), at
                  $.00001 par value.

            B.    40,000 shares of the Preferred Stock are designated as 10%
                  Junior Redeemable Convertible Preferred Stock ("Junior
                  Preferred Stock"), and are issued to the Trust, a Texas Trust.
                  The shares of Junior Preferred Stock issued to the Trust are
                  convertible into common stock, $.00001 par value (the "Common
                  Stock") of Boots & Coots at $2.75 per share of Common Stock.

            C.    The Trust currently holds Warrant No. 1998-15 representing the
                  right to purchase 200,000 shares of Common Stock at an
                  exercise price of $5.00 per share (the "200,000 Share
                  Warrant").

            D.    Scotty D. Cook holds Warrant No. 6(a) representing the right
                  to purchase 40,000 shares of Common Stock at $1.20 per share.

            E.    Thomas J. Spackman, Jr. holds Warrant No. 6(b) representing
                  the right to purchase 20,000 shares of Common Stock at $1.20
                  per share.

            F.    Donald F. Moorehead holds Warrant No. 6(c) representing the
                  right to purchase 30,000 shares of Common Stock at $1.20 per
                  share .

            G.    George O. Moorehead holds Warrant No. 6 (d) representing the
                  right to purchase 10,000 shares of Common Stock at $1.20 per
                  share

                  Collective, holders (D) - (G) are referred to herein as,
                  the "100,000 Share Warrant."

            H.    Contemporaneously herewith, the Parties have entered into a
                  Lock Up Agreement restricting sales of Common Stock by the
                  Trust.

         2. Agreements. In exchange for the mutual covenants, representations
and agreements set forth herein, the Parties agree to the following:

<PAGE>   2

            A.    Boots & Coots shall, upon the Trust's delivery to it of
                  certificates representing Junior Preferred Stock in accordance
                  with the conversion requirements of the Certificate of
                  Designation of Rights and Preferences relating thereto (the
                  "Designation"), in one or a series of partial conversions,
                  issue (i) 363,636 shares of Common Stock issuable upon the
                  conversion thereof in accordance with such Designation, and
                  (ii) an additional 952,153 shares of Common Stock issuable
                  upon the conversion thereof as an adjustment to the conversion
                  price thereof pursuant to this Settlement Agreement.

            B.    Boots & Coots shall issue to the Trust a Warrant to purchase
                  450,000 shares of Common Stock at an exercise price of $1.25
                  per share (the "450,000 Share Warrant").

            C.    Boots & Coots hereby modifies the exercise price of the
                  200,000 Share Warrant as follows: (i) the exercise price shall
                  be $1.25 per share as to 100,000 shares of Common Stock
                  covered by the 200,000 Share Warrant, and (ii) the exercise
                  price shall be $1.50 per share as to 100,000 shares of Common
                  Stock covered by the 200,000 Share Warrant.

            D.    Boots & Coots hereby modifies the permitted methods of payment
                  of the exercise price under the 200,000 Share Warrant and the
                  100,000 Share Warrant to include a cashless exercise option as
                  follows: the Trust may pay the exercise price for the shares
                  of Common Stock by giving notice to Boots & Coots that it is
                  exercising such warrant and authorizes Boots & Coots to
                  withhold from the issuance to the Trust (and to reduce the
                  amount of the warrant by) that number of shares which when
                  multiplied by the average closing sales price for the Common
                  Stock on the American Stock Exchange, bulletin board, NASDAQ,
                  or any other exchange, for the ten consecutive trading days
                  immediately preceding the date of notice of exercise is equal
                  to the aggregate exercise price for the shares being
                  purchased.

            E.    In exchange for the foregoing, the Trust executes and delivers
                  to Boots & Coots this Settlement Agreement and the Lock Up
                  Agreement attached hereto as Exhibit A.

            F.    That immediately following (no later than the end of business
                  as of the day following) any public sale by the Trust (or any
                  transferee of the Trust) of any shares of Common Stock
                  issuable upon the conversion of the Junior Preferred Stock
                  held by the Trust or the 200,000 share Warrant or the 100,000
                  Share Warrant, the Trust shall deliver, or cause to be
                  delivered, to Boots & Coots written evidence of the date of
                  such sale, the broker through whom such shares were sold, the
                  number of shares sold, and the aggregate purchase price
                  received with respect thereto. In the event that the Trust
                  shall sell shares of

<PAGE>   3

                  Common Stock in excess of the restrictions on transfer imposed
                  by the Lock Up Agreement, the Trust agrees that Boots & Coots
                  shall have the right to cancel and refuse to issue shares of
                  Common Stock otherwise issuable upon the exercise of the
                  100,000 Share Warrant, the 200,000 Share Warrant and the
                  450,000 Share Warrant in addition to pursuing whatever rights
                  it may have under law.

            G.    Boots & Coots agrees that its failure to render, or to cause
                  its counsel to render, a legal opinion to its transfer agent
                  (within a reasonable time after the receipt of a request and
                  completed customary Rule 144 paperwork) that the legend may be
                  removed from shares of Common Stock issued to the Trust upon
                  the conversion of the Junior Preferred Stock as agreed herein,
                  shall entitle the Trust to liquidated damages equal to the
                  difference between (i) the Trust's $1,000,000 of invested
                  capital plus a 10% annual rate of return from April 9, 1998
                  and (ii) proceeds from the Trust's sales of shares of Common
                  Stock issued upon the conversion of the Junior Preferred
                  Stock.

         3. Settlement. As to each and every possible allegation that could be
asserted by Boots & Coots, there is dispute, doubt, disagreement, and
controversy including but not limited to Boots & Coots' liability for damages,
costs, and attorney's fees. Accordingly, the Trust and Boots & Coots have
decided to avoid litigation, and now desire to enter into a compromise agreement
regarding all claims which could possibly have been asserted. Therefore, in
consideration of the mutual promises expressed herein and in the Lock Up
Agreement, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged and confessed, the Trust voluntarily
and knowingly executes this Agreement with the express intent of being bound to
all obligations, terms and conditions contained herein.

         4. No Admission of Liability. The Parties have entered into this
Settlement Agreement solely for the purpose of avoiding the nuisance, risk and
expense of litigation over disputed and doubtful claims. This Settlement
Agreement is not intended and should not be construed as an admission of
liability by Boots & Coots because all such liability is expressly denied by
each Party.

         5. Release by the Trust. In consideration of the receipt of covenants
agreements described above, the Trust, for itself and its trustees,
beneficiaries, agents, legal representatives, successors and assigns, hereby
releases, discharges, indemnifies and holds Boots & Coots, its officers,
directors, employees, shareholders, agents, subsidiaries, successors and assigns
(collectively, the "Boots & Coots Released Parties") harmless from any and all
claims, demands, actions, judgments and causes of action of whatever nature or
character which it could have asserted, or which may be asserted by any person,
trust, firm, partnership, corporation or business entity claiming by, through or
under the Trust, and arising out of any claims that the Trust has or ever had
relating to the Boots & Coots Released Parties, all of which claims are being
released in this Agreement. The provisions of this paragraph apply even if such
claims, demands, judgments, actions and causes of action were caused in whole or
in part by any act, omission, negligence, gross negligence, breach of contract,
intentional conduct, violation of statute or common law, breach of warranty,
tort or conduct of any type by the Boots & Coots Released Parties. In further
consideration of the receipt of settlement amount as above described, the Trust
agrees to indemnify and hold the Boots & Coots Released Parties harmless from
all claims for contribution or indemnity, whether

<PAGE>   4

asserted now or in the future, and the reasonable and necessary costs, including
attorney's fees, incurred in defense of any such claim, that any person, trust,
trustee, firm, partnership, corporation or business entity has or may have or
assert against the Boots & Coots Released Parties in any way relating to the
Trust's purchase or ownership of the securities of Boots & Coots or the
transactions contemplated herein.

         6. Representations and Warranties by Boots & Coots. Boots & Coots
hereby represents and warrants to the Trust the following:

            A.    Organization and Good Standing. Boots & Coots is a corporation
                  duly organized, validly existing and in good standing under
                  the laws of Delaware.

            B.    Power and Authorization. The execution, delivery and
                  performance by Boots & Coots of this Agreement is within Boots
                  & Coots' legal authority and require no authorization,
                  consent, approval, license, exemption of or filing or
                  registration with any court or governmental department,
                  commission, board, bureau, agency or instrumentality of
                  government which has not been obtained. Larry H. Ramming is
                  the Chief Executive Officer and Chairman of the Board of
                  Directors of Boots & Coots and he has full authority to bind
                  Boots & Coots.

            C.    Binding Obligations. This Agreement is the legal, valid and
                  binding obligation of Boots & Coots and is enforceable against
                  Boots & Coots in accordance with its terms.

            D.    After April 9, 2000, Boots & Coots will, or will cause its
                  counsel to, within a reasonable time after request and the
                  receipt of completed customary Rule 144(k) paperwork,
                  authorize the removal of the above legend from shares of
                  Common Stock issuable upon conversion of the Junior Preferred
                  Stock.

         7. Representations and Warranties by the Trust. The Trust hereby
represents and warrants to Boots & Coots the following:

            A.    Organization and Good Standing. The Trust is a trust duly
                  organized and validly existing under the laws of the State of
                  Texas.

<PAGE>   5

            B.    Power and Authorization. The execution, delivery and
                  performance by the Trust of this Agreement and the Lock Up
                  Agreement are within the Trust's legal authority, require no
                  authorization, consent, approval, license, exemption of or
                  filing or registration with any court or governmental
                  department, commission, board, bureau, agency or
                  instrumentality of government. Don Moorehead and Shelley
                  Moorehead are the trustees of the Trust and have the full
                  authority to execute and deliver this Agreement and the Lock
                  Up Agreement.

            C.    Binding Obligations. This Agreement and the Lock Up Agreement
                  constitute legal, valid and binding obligations of the Trust
                  and are enforceable against the Trust, its trustees and
                  beneficiaries, in accordance with their respective terms.

            D.    Accredited Investor. The Trust is an "Accredited Investor"
                  within the meaning of Rule 501 of the Securities Act.

            E.    Binding Obligations. The Trust understands and agrees that
                  each shares of Common Stock issued to it will bear the
                  following legend:

                  "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, OR ANY STATE
                  SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS
                  THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
                  COVERING SUCH SECURITIES OR THE ISSUER RECEIVES AN OPINION OF
                  COUNSEL REASONABLY SATISFACTORY TO IT STATING THAT SUCH SALE
                  OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
                  DELIVERY REQUIREMENTS OF SUCH ACT AND APPLICABLE STATE
                  SECURITIES LAWS."

            E.    No Assignment. The Trust has not assigned, mortgaged or
                  transferred to any person or entity all or any portion of the
                  claims which it may assert against Boots & Coots or the Boots
                  & Coots Released Parties which are being released herein.

         7. Miscellaneous.

            A.    This Agreement is binding upon each party hereto and its
                  officers, directors, shareholders, trustees, employees,
                  beneficiaries, agents, legal representatives, successors and
                  assigns, and the provisions of this Agreement shall inure to
                  the benefit of these parties.

<PAGE>   6

            B.    In the event that any one or more of the provisions of this
                  Agreement shall, for any reason, be held invalid, illegal, or
                  unenforceable in any respect, such invalidity, illegality or
                  unenforceability shall not affect any other provision of this
                  Agreement.

            C.    The validity, effect and construction of this Agreement shall
                  be governed by the laws of the State of Texas. Any suit
                  arising under or in connection with this Agreement, including
                  but not limited to any proceeding to enforce or construe the
                  terms of this Agreement, shall be brought in Dallas County,
                  Texas, and no where else. In any such proceeding, the
                  prevailing party shall be entitled to reasonable and necessary
                  attorneys fees and costs.

            D.    This Agreement and the Lock Up Agreement embody the entire
                  settlement agreement between the Parties as to the subject
                  matter hereof, and merge and supersede all prior discussions,
                  agreements and understandings of every kind and nature among
                  them. No party shall be bound by any condition, definition,
                  warranty or representation, other than as expressly set forth
                  or provided for in this Agreement or the Lock Up Agreement.

            E.    This Agreement may not be amended, modified, waived or
                  terminated orally or discharged except by a writing signed by
                  the Parties.

            F.    This Agreement shall not be construed in favor of or against
                  any Party on the basis that the Party did or did not author
                  this Agreement or any attachment related to it. It is intended
                  that this Agreement shall be comprehensive in nature and shall
                  be construed liberally to effect its purposes.

            G.    Article and Section headings used in this Agreement are for
                  convenience only and shall not affect the construction.

            H.    Each Party warrants that (a) before signing this Agreement, it
                  consulted with his or her own counsel regarding the contents
                  of this Agreement; (b) it voluntarily executed this Agreement
                  only after having fully understood and after willingly
                  accepting each and every term and condition described herein;
                  and, (c) that no other Party, nor anyone else acting on its
                  behalf, has made any promise or representation regarding this
                  settlement which is not expressly stated in this Agreement or
                  the Lock Up Agreement.

            I.    This Agreement shall be executed in multiple counterparts.

<PAGE>   7

            J.    This Agreement shall be binding on the Parties effective as of
                  the date hereof.

            K.    All notices and/or the tender of any other document or item
                  required herein shall be valid only if sent by First Class,
                  Certified, United States Mail to each Party at the following
                  addresses:

                       (i)     Notices to Boots & Coots:

                                   Larry H. Ramming, Chief Executive Officer &
                                   Chairman
                                   Boots & Coots International Well Control,
                                   Inc.
                                   515 San Felipe, Suite 450
                                   Houston, TX 77056

                       (ii)    Notices to the Trust

                                   Thomas Spackman, President
                                   Founders Equity Group, Inc.
                                   2602 McKinney Ave., Suite 220
                                   Dallas, TX 75204

                  Any Party to this Agreement may change its address for notice
                  purposes by notifying all other Parties of its new notice
                  address in writing by First Class, Certified, United States
                  Mail.

<PAGE>   8

                  WHEREFORE, with the intent of being fully bound by each and
         every obligation, term and condition contained herein, the Parties have
         this day executed this Agreement.

                                     BOOTS & COOTS INTERNATIONAL
                                     WELL CONTROL, INC.

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

                                     DONALD AND SHELLEY MOOREHEAD
                                     CHARITABLE TRUST

                                     By:
                                        ----------------------------------------
                                             Shelley Moorehead, Trustee

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