Document:

EX-10.1

 Exhibit 10.1 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED 

BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY 

CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED. 

EXECUTION VERSION 

RESTRUCTURING SUPPORT AGREEMENT 

This Restructuring Support Agreement (including all annexes, exhibits and schedules attached hereto, including the Term Sheet
(defined below), in each case, as may be amended, modified or supplemented from time to time, this “RSA” or this “Agreement”), dated as of January 24, 2020, is entered into by and among Key Energy Services,
Inc., a Delaware corporation (the “Company”), Key Energy Services, LLC, a Texas limited liability company (“Key Energy LLC”, and together with the Company, collectively, “Borrowers” or
“Borrower”), and, severally and not jointly, each lender that is a holder of Term Loans (as defined below) listed on Schedule 1 and party hereto (each, a “Supporting Term Lender”) and Cortland Products Corp., as
agent under the Term Loan Agreement (defined below) (in such capacity, the “Agent”). 
 The Borrowers and
each Supporting Term Lender are referred to herein individually as a “Party”, and collectively as the “Parties”. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to
such terms in the Term Loan Agreement. 
 RECITALS 

WHEREAS, the Borrowers and the Supporting Term Lenders are parties to that certain Term Loan and Security Agreement,
dated as of December 15, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among the Borrower, the lenders party thereto and the Agent; 

WHEREAS, the Borrowers are obligors under the Term Loan Agreement in the aggregate outstanding principal amount of
$243,125,000 as of the date hereof, plus accrued and unpaid interest thereon and any fees or other amounts owing thereunder, and the Supporting Term Lenders, in the aggregate, hold approximately $241,909,374.87 (99.5%) of the aggregate outstanding
principal amount of the term loans under the Term Loan Agreement (the “Term Loans”); 
 WHEREAS, the
Parties have negotiated in good faith and at arms’ length an out- of-court transaction that will effectuate a financial restructuring (the
“Restructuring”) of the Company’s capital structure and financial obligations, on the terms and conditions set forth in the Summary of Terms and Conditions of Restructuring Transaction (the “Term Sheet”)
attached hereto as Exhibit A; and 
 WHEREAS, the Parties desire to express to each other their mutual support
and commitment in respect of the Restructuring, including with respect to the good faith cooperation in consummating a series of transactions (the “Restructuring Transaction”) on the terms and conditions consistent with the Term
Sheet. 

 NOW, THEREFORE, in consideration of the covenants and agreements
contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Party, intending to be legally bound hereby, agrees as follows: 

1.    Effectiveness; Entire Agreement. This Agreement shall become effective and
binding upon each of the Parties upon the execution and delivery of counterpart signature pages to this Agreement by the Company and the Supporting Term Lenders (such date, the “RSA Effective Date”). 

(b) This RSA, including all exhibits and schedules attached hereto (inclusive of exhibits thereto), and together with the non-disclosure and confidentiality agreements among the Parties, the Forbearance Agreement, dated as of October 29, 2019, among the Borrowers, the Agent and the Supporting Term Lenders (as amended, modified or
supplemented, the “Forbearance Agreement”), and Letter re: Fees and Expenses of Counsel to the Ad Hoc Group among Davis Polk & Wardwell LLP and the Company (the “DPW Reimbursement Letter”), constitutes the
entire agreement of the Parties as of the date of this Agreement with respect to the subject matter hereof and supersedes all prior negotiations and documents reflecting such prior negotiations between and among the Parties (and their respective
advisors), with respect to the Restructuring. In the event the terms and conditions set forth in the Term Sheet and this Agreement (exclusive of the Term Sheet) are inconsistent, the terms and conditions set forth in the Term Sheet shall govern.

 2.    Material Covenants of All Parties. For so long as this Agreement has not
been validly terminated, each Party severally and not jointly agrees to: 
 (a)    support and cooperate
with each other Party in good faith and coordinate its activity in connection with, and otherwise use its commercially reasonable best efforts to consummate, the Restructuring as soon as reasonably practicable, but in all cases, consistent with the
Term Sheet; 
 (b)    use its commercially reasonable best efforts and work in good faith to
(i) negotiate definitive documents implementing, achieving and relating to the Restructuring, as soon as reasonably practicable, but in all cases, consistent with the Term Sheet, including (A) the New Term Loan Agreement, New Warrants,
Shareholders’ Agreement, MIP (each as defined in the Term Sheet), an exchange agreement pursuant to which each Supporting Term Lender will exchange all of the Term Loans held by such Supporting Term Lender for equity interests in the Company
and $20 million of New Term Loan (as defined in the Term Sheet) (the “Exchange”), amendments to, or a replacement of, the ABL Credit Agreement, and other corporate governance agreements and (B) such other related documents
and ancillary agreements required to implement the Restructuring (collectively (A) and (B), such documents, in each case, which shall contain terms and conditions consistent, in all material respects, with the Term Sheet, and, if not expressly
specified therein, in form and substance satisfactory to the Borrowers and Supporting Term Lenders holding at least 66.6% of the Term Loans held by the Supporting Term Lenders (the “Required Supporting Term Lenders”), and as may be
amended, modified or supplemented only in accordance with the terms of this Agreement, the “Definitive Restructuring Documents”), and (ii) duly execute and deliver (to the extent it is a party thereto) the Definitive Restructuring
Documents and otherwise support and seek to effect the actions and transactions contemplated thereby, as soon as reasonably practicable; 

(c)    support and use its commercially reasonable best efforts to (i) consummate the Restructuring
and all transactions contemplated by the Term Sheet or the Definitive Restructuring Documents, to which it is a party, as soon as reasonably practicable, (ii) take any and all reasonably necessary actions in furtherance of the Restructuring and
the transactions 

  
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contemplated by the Term Sheet or the Definitive Restructuring Documents, and (iii) if applicable, obtain (solely as it relates to such Party) any and all required regulatory and/or third
party approvals necessary to consummate the Restructuring, including any approvals required under antitrust laws; 

(d)    not take any action that is inconsistent with, or is intended to frustrate, delay or impede in any
respect the timely consummation of the transactions contemplated by the Term Sheet or Definitive Restructuring Documents; and 

(e)    not challenge the validity or enforceability of this Agreement in any way, including by commencing,
directly or indirectly, any legal proceeding. 
 3.    Additional Covenants of the
Supporting Term Lenders. For so long as this Agreement has not been validly terminated as to such Supporting Term Lender, each Supporting Term Lender agrees, severally but not jointly, so long as it remains the legal owner or beneficial
owner of any interest in, or claim to, the Term Loans, to: 
 (a)    not, directly or indirectly,
(i) object to, delay, impede, or take any other action to interfere with the implementation or consummation of the Restructuring, (ii) seek, solicit, support, encourage, or consent to any restructuring or reorganization for the Company
that is inconsistent with the Term Sheet or the Definitive Restructuring Documents in any respect, or (iii) otherwise support any other transaction that is inconsistent with the Term Sheet or the Definitive Restructuring Documents; 

(b)    support the implementation and consummation of the Exchange subject to and in accordance with the
terms hereof and the Shareholder Approval (as defined below); and 
 (c)    not (A) sell, pledge,
assign, transfer, permit the participation in, or otherwise dispose of any ownership (including any beneficial ownership) in the Term Loans, as the case may be, set forth on Schedule 1 hereto, in whole or in part or (B) grant any proxies or
deposit any of such Supporting Term Lender’s interests in the Term Loans, as the case may be, set forth on Schedule 1 hereto into a voting trust, or enter into a voting agreement with respect to any such interest (collectively, the actions
described in clauses (A) and (B), a “Transfer”). 
 Any Transfer made in violation of this provision
shall be void ab initio. Notwithstanding the foregoing, (a) any Supporting Term Lender may Transfer to (i) any other Supporting Term Lender or (ii) any transferee that executes and delivers to the Company a Transfer Agreement
substantially in the form of Exhibit B to this Agreement concurrently with such transfer. This RSA and the obligations of each Supporting Term Lenders hereunder with respect to the Term Loans held by such Supporting Term Lender shall apply to any
Term Loans acquired by such Supporting Term Lender after the date hereof. 
 4.    Additional
Covenants of the Company. 
 For so long as this Agreement has not been validly terminated, the Company
shall: 
 (a)    (i) promptly notify counsel to the Supporting Term Lenders of any inquiries, proposals
or offers to purchase any substantial assets or properties of the Company or to make any material investment in the Company or to provide the Company with debt or equity financing and (ii) thereafter, keep counsel to the Supporting Term Lenders
promptly and reasonably informed of the progress of any related discussions or negotiations; 

  
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 (b)    use its commercially reasonable efforts to
provide a Supporting Term Lender with any information that is reasonably requested by such Supporting Term Lender or is reasonably necessary to consummate the Restructuring Transaction; 

(c)    use its commercially reasonable best efforts to preserve intact its material present business
organization and maintain in effect all of its material foreign, federal, state and local licenses, permits, consents, franchises, approvals and authorizations; 

(d)    pay reasonable and documented fees and expenses incurred by the Supporting Term Lenders in
connection with the transactions contemplated by the Restructuring and consistent with the Term Sheet, which, in the case of legal fees, shall be limited to (i) the reasonable and documented fees and expenses of Davis Polk & Wardwell
LLP, as counsel to the Supporting Term Lenders, in accordance with the DPW Reimbursement Letter and (ii) the reasonable and documented fees and expenses of Milbank LLP (“Milbank”), as advisor to Tennenbaum Capital Partners,
LLC., provided that Milbank’s fees or expenses shall be capped at $100,000 in the aggregate and the Company shall not be responsible for any fees or expenses of Milbank incurred after January 14, 2020, and, in the case of other advisors,
shall be limited to the fees and expenses of Perella Weinberg Partners LP payable pursuant to the letter agreement, dated as of October 21, 2019, between Perella Weinberg Partners LP, the Company and certain of the Supporting Term Lenders; and

 (e)    prepare such proxy statements, information statements or other disclosure documents with
respect to solicitations of the Company’s existing stockholders necessary or advisable to implement the Exchange and other matters contemplated by the Term Sheet in each case in accordance with the terms of the Term Sheet (the
“Shareholder Approval”), including providing any and all information reasonably required in connection therewith. 

Without limiting the generality of the foregoing, except as expressly contemplated by this Agreement or otherwise in the
ordinary course of business consistent with past practice, the Company shall not, without the prior written consent of the Required Supporting Term Lenders: 

(i)    amend its articles of incorporation, bylaws or other similar organizational documents (whether by
merger, consolidation or otherwise); 
 (ii)    split, combine or reclassify any shares of capital stock
of the Company or declare, set aside or pay any dividend or other distribution (whether in cash, stock or property or any combination thereof) in respect of the capital stock of the Company, or redeem, repurchase or otherwise acquire or offer to
redeem, repurchase, or otherwise acquire any Company equity securities; 
 (iii)    issue, deliver or
sell, or authorize the issuance, delivery or sale of, any shares of any Company equity securities or amend any term of any Company equity security (in each case, whether by merger, consolidation or otherwise); 

  
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 (iv)    enter into any agreement or arrangement that
limits or otherwise restricts in any material respect the Company or any successor thereto or that could, after the Restructuring Transaction is consummated, limit or restrict in any material respect the Company or any of its subsidiaries, from
engaging or competing in any line of business, in any location or with any person or waive, release or assign any material rights, claims or benefits of the Company; 

(v)    make or change any tax election, change any annual tax accounting period, adopt or change any method
of tax accounting, materially amend any tax returns or file claims for material tax refunds, enter any material closing agreement, settle any material tax claim, audit or assessment, or surrender any right to claim a material tax refund, offset or
other reduction in tax liability; or 
 (vi)    enter into agreement to do any of the foregoing; 

5.    Mutual Representations and Warranties of All Parties. Each Party, severally but
not jointly, represents and warrants to each of the other Parties that, as of the date hereof: 

(a)    it has all requisite power and authority to enter into this RSA and to carry out the transactions
contemplated hereby, and perform its obligations hereunder; 
 (b)    the execution and delivery of this
RSA and the performance of its obligations hereunder have been duly authorized by all necessary action on its part; and 

(c)    this RSA constitutes the legally valid and binding obligation of such Party, enforceable against it
in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to
enforceability. 
 6.    Additional Representations and Warranties by the Supporting Term
Lenders. Each Supporting Term Lender (solely on its own behalf and not on behalf of any other Supporting Term Lender), severally but not jointly, represents and warrants, as of the date hereof that: 

(a)    Holdings by the Supporting Term Lenders. With respect to the holding of the Term Loans listed
on Schedule 1 hereto opposite its name, such Supporting Term Lender (i) either (A) is the sole beneficial owner of the full amount of such Term Loans as set forth herein or (B) has sole investment or voting discretion with respect to the full
amount of such Term Loan Loans as set forth herein and has the power and authority to bind the beneficial owners of such Term Loans to the terms of this RSA and (ii) has all requisite power and authority to act on, and consent to matters
concerning, such Term Loans and to dispose of, exchange, assign, and transfer such Term Loans, including the power and authority to execute and deliver this RSA and to perform its obligations hereunder, in each case, subject to any ordinary course
financing arrangements a Supporting Term Lender may have with respect to such Term Loans; 
 (b)    No
Transfers. With respect to the Term Loans, held by each Supporting Term Lender as set forth on Schedule 1 hereto, such Supporting Term Lender has made no Transfer; 

  
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 (c)    Sufficiency of Information Received. Such
Supporting Term Lender has reviewed, or has had the opportunity to review, with the assistance of professional and legal advisors of its choosing, all information it deems necessary and appropriate for such Supporting Term Lender to evaluate the
financial risks inherent in the Restructuring and accept the terms and conditions of the Term Sheet; 

(d)    Knowledge and Experience. Such Supporting Term Lender (i) has such knowledge and
experience in financial and business matters of this type that it is capable of evaluating the merits and risks of entering into this Agreement and of making an informed investment decision, and has conducted an independent review and analysis of
the business and affairs of the Company that it considers sufficient and reasonable for purposes of entering into this Agreement and (ii) is not relying on any advice from any other Supporting Term Lender or their respective affiliates and that
no other Supporting Term Lender or its respective affiliates is acting as a financial advisor, agent, underwriter or broker to such Supporting Term Lender or any of its affiliates or otherwise on behalf of such Supporting Term Lender or any of its
affiliates in connection with the transactions contemplated by this Agreement or the agreements entered into in connection herewith; 

(e)    No Conflicts (Contracts). The execution, delivery and performance by such Supporting Term
Lender of this Agreement and the transactions contemplated by the Term Sheet or Definitive Restructuring Documents does not and shall not conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under
any contractual obligation to which such Supporting Term Lender is a party, except to the extent any such breach or default would not be expected to have a material adverse effect on such Supporting Term Lender’s business or materially delay
consummation of the Restructuring; 
 (f)    Governmental Approvals. The execution, delivery and
performance by such Supporting Term Lender of this Agreement does not and shall not require any registration or filing with, consent or approval of, or notice to, or other action to, with or by, any federal, state or governmental authority or
regulatory body, except as may be required for approval of the transactions contemplated by the Term Sheet and the Definitive Restructuring Documents pursuant to applicable antitrust laws, and except as would not otherwise have a material adverse
effect on the Restructuring; and 
 (g)    No Conflicts (Laws and Organizational Documents). The
execution, delivery, and performance of this Agreement does not (i) violate any provision of law, rule, or regulations applicable to such Supporting Term Lender or (ii) violate such Supporting Term Lender’s certificate of
incorporation, limited liability company agreement, by-laws, or other organizational documents. 

7.    Additional Representations and Warranties by the Borrower. Each Borrower
represents and warrants, as of the date hereof that: 
 (a)    No Conflicts (Contracts). The
execution, delivery and performance by such Borrower of this Agreement and the transactions contemplated by the Term Sheet or Definitive Restructuring Documents does not and shall not conflict with, result in a breach of, or constitute (with due
notice or lapse of time or both) a default under any contractual obligation to which such Borrower is a party, except (i) the defaults under the ABL Credit Agreement and the Term Loan 

  
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Credit Agreement that such Borrower has obtained a waiver or forbearance of, which such waiver or forbearance remains in effect, and/or (ii) to the extent any such breach or default would
not be expected to have a material adverse effect on such Borrower’s business or materially delay consummation of the Restructuring; 

(b)    Governmental Approvals. Subject to the accuracy of Section 6(f), the execution, delivery
and performance by such Borrower of this Agreement does not and shall not require any registration or filing with, consent or approval of, or notice to, or other action to, with or by, any federal, state or governmental authority or regulatory body,
except as may be necessary or required (i) for filings in connection with the Shareholder Approval and any other filings pursuant to the Securities Exchange Act of 1934, as amended, (ii) filings in connection with perfecting security
interests in respect of the New Term Loan Agreement and the ABL Credit Agreement, (iii) for filings pursuant to applicable state securities or “blue sky” laws, and (iv) for approval of the transactions contemplated by this
Agreement, the Term Sheet and the Definitive Restructuring Documents pursuant to applicable antitrust laws, and except as would not otherwise have a material adverse effect on the consummation of the Restructuring; 

(c)    No Conflicts (Laws and Organizational Documents). The execution, delivery, and performance of
this Agreement does not (i) violate any provision of law, rule, or regulations applicable to such Borrower, including any applicable state securities or “blue sky” laws or (ii) violate such Borrower’s certificate of
incorporation or by-laws; and 
 (d)    No Defaults. As of
the date hereof, no Default or Event of Default has occurred and is continuing under the Term Loan Credit Agreement other than the Specified Defaults. 

8.    Termination of
Obligations. This Agreement shall terminate immediately and automatically and all of the obligations of the Parties shall be of no further force or effect upon the occurrence of any of the following events: (i) the consummation of the
Restructuring Transaction and the execution and delivery of the Definitive Restructuring Documents, (ii) the issuance by any governmental authority, any court or any regulatory authority, in each case having competent jurisdiction, of an order
or decree enjoining the Restructuring or declaring this Agreement to be unenforceable, as the case may be, (iii) the Borrowers and the Required Supporting Term Lenders mutually agree to such termination in writing, or (iv) this Agreement
is terminated pursuant to paragraph (b) or (c) of this Section 8. 
 (b)    The Borrowers may,
in their discretion, terminate this Agreement by written notice to the other Parties, upon the occurrence of any of the following events: 

(i)    the Restructuring Transaction has not been consummated within 75 days after the RSA Effective Date;

 (ii)    within three (3) Business Days after the giving of written notice by the Borrowers to
the Supporting Term Lenders of a determination by the board of directors of the Company (the “Board”), in good faith, based on the advice of its outside counsel, that proceeding with the Restructuring and pursuit of the
Restructuring Transaction would be inconsistent with the Board’s fiduciary obligations under applicable law; 

  
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 (iii)    a breach by one or more Supporting Term
Lenders of its or their material obligations, representations or warranties hereunder, which breach is not cured within five (5) Business Days after the giving of written notice by the Borrowers of such breach to such Supporting Term Lender or
Supporting Term Lenders and counsel to the Supporting Term Lenders; or 
 provided that, upon a termination of this Agreement by the
Borrowers pursuant to Section 8(b), (x) all obligations of the Supporting Term Lenders hereunder shall immediately terminate without further action or notice by such Supporting Term Lenders, and (y) the Borrowers (and its directors, officers,
employees, advisors, subsidiaries, and representatives) shall not have or incur any liability under this Agreement or otherwise solely on account of such termination. 

(c)    This Agreement may be terminated by the Required Supporting Term Lenders by written notice to the
other Parties upon the occurrence of any of the following events: 
 (i)    the Restructuring
Transaction has not been consummated within 75 days after the RSA Effective Date; 
 (ii)    upon the
occurrence of a Forbearance Termination Event (as defined in the Forbearance Agreement); 

(iii)    upon receipt by the Supporting Term Lenders of a notice delivered by the Borrowers pursuant to
Section 8(b)(ii) hereof; 
 (iv)    Company files or publicly announces that it will file, join in
or support any plan of reorganization, including any in-court bankruptcy proceeding, other than as contemplated by the Term Sheet without the prior written consent of the Required Supporting Term Lenders; or

 (v)    a breach by any Borrower of its material obligations, representations or warranties hereunder,
which breach is not cured within five (5) Business Days after the giving of written notice by counsel for the Supporting Term Lenders to the Borrowers. 

(d)    This Agreement shall terminate solely as to any Supporting Term Lender on the date on which such
Supporting Term Lender has transferred all (but not less than all) of its Term Loans in accordance with Section 3 of this Agreement. 

(e)    No Party may seek to terminate or terminate this Agreement based upon any default, failure of a
condition, or right of termination in this Agreement arising (directly or indirectly) out of its own actions or omissions. 

(f)    If this Agreement is terminated as to any Party pursuant to this Section 8, this Agreement
shall forthwith become void and of no further force or effect, each such Party shall be released from its commitments, undertakings and agreements under or related to this Agreement, and there shall be no liability or obligation on the part of any
such Party, provided that (i) each such Party shall have all rights and remedies available to it under applicable law (for all matters unrelated to this Agreement); (ii) any and all consents tendered by the terminating Supporting Term Lenders
prior to such termination shall be deemed, for all purposes, 

  
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automatically to be null and void ab initio; (iii) in no event shall any such termination relieve any Party from liability for its breach or
non-performance of its obligations hereunder prior to the date of such termination (including any reimbursement obligations incurred prior to the date of such termination); and (iv) in no event shall any
such termination relieve any Party from its obligations under this Agreement which expressly survive any such termination pursuant to Section 20 hereof. 

9.    Forbearance. The Parties agree, and the Agent acknowledges, that the
Forbearance Agreement shall continue to remain in full force and effect for as long as this Agreement has not been validly terminated, subject to Section 9(b) below. 

(b)    Effective as of the RSA Effective Date, the Forbearance Agreement is hereby amended as follows: 

(i)    Section 3(a) of the Forbearance Agreement is hereby amended by replacing the reference to
“January 31, 2020” with “the date on which the Restructuring Support Agreement, dated as of January 24, 2020, among the Borrowers, the Agent and the Lender Parties party thereto, is validly terminated in accordance with
Section 8 thereof” (such date, the “Termination Date”). 
 (ii)    The
definition of “Specified Default” is expanded to include, in addition to any Specified Defaults in existence immediately prior to the RSA Effective Date: 
  

	 	a.	 any Default or Event of Default arising from the Borrowers’ failure to pay any scheduled payment of
principal, interest or fees with respect to the Term Loans, required to be made pursuant to the Term Loan Agreement prior to the Termination Date (it being understood that any such amounts shall be deferred and shall become due and payable in the
event this Agreement is validly terminated without the Restructuring Transaction having been consummated and the Definitive Restructuring Documents having been executed), including any cross-default arising as a result of any Default or Event of
Default under the ABL Credit Agreement caused by any of the foregoing; and 

  

	 	b.	 any Default or Event of Default arising solely from (x) the negotiation, execution, implementation or
consummation of this RSA or the Definitive Restructuring Documents or any of the actions or transactions contemplated thereby; or (y) any cross-default arising as a result of any Default or Event of Default under the ABL Credit Agreement caused
by the negotiation, execution, implementation or consummation of the RSA or the Definitive Restructuring Documents, or any of the actions or transactions contemplated thereby. 

(c)    Effective as of the RSA Effective Date, any requirement in any confidentiality agreement between the
Company and any Supporting Term Lender that requires “cleansing” disclosures or similar provisions are hereby waived until the Termination Date. 

(d)    The execution, delivery and effectiveness of this Agreement, including this Section 9, shall
not operate as a waiver of any right, power or remedy of any Supporting Term 

  
 9 

 
Lender under any of the Loan Documents nor constitute a waiver of any provision of any of the Loan Documents, other than as expressly set forth in the Forbearance Agreement (as amended hereby)
and this Section 9. On and after the RSA Effective Date, this Agreement shall for all purposes constitute a Loan Document. 

(e)    Execution of this Agreement by the Required Lenders constitutes a direction by the Required Lenders
that the Agent, in accordance with this Agreement, act or refrain from acting. Each Supporting Term Lender agrees that the Agent shall not be required to act against the Company or any of its subsidiaries that are Obligors under the Term Loan Credit
Agreement if such action is contrary to the terms of this Agreement. In no event shall any discretionary obligations or duties be construed against the Agent hereunder. 

10.    Counterparts. This Agreement and any amendments, waivers, consents, or
supplements hereto or in connection herewith may be executed in multiple counterparts and delivered by electronic mail (in “.pdf” or “.tif” format), facsimile or otherwise, each of which shall be deemed to be an original for the
purposes of this Agreement and all of which taken together shall constitute one and the same Agreement. 

11.    No Solicitation and Acknowledgements. Notwithstanding anything to the contrary
in this Agreement, each Party acknowledges that no securities of the Company are being offered or sold hereby and this Agreement neither constitutes an offer to sell nor a solicitation of an offer to buy any securities of the Company. 

12.    Time is of the Essence. The Parties acknowledge and agree that time is of the
essence, and that they must each use commercially reasonable best efforts to effectuate and consummate the Restructuring as soon as reasonably practicable. 

13.    Governing Law; Consent to Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION WHICH WOULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION. 

(b)    By its execution and delivery of this Agreement, each Party hereby irrevocably and unconditionally
agrees for itself that any legal action, suit or proceeding against it with respect to any matter under or arising out of or in connection with this Agreement or for recognition or enforcement of any judgment rendered in any such action, suit or
proceeding, may be brought solely in either a state or federal court of competent jurisdiction in the County of New York in the State of New York. By execution and delivery of this Agreement, each of the parties hereto hereby irrevocably accepts and
submits itself to the nonexclusive jurisdiction of each such court, generally and unconditionally, with respect to any such action, suit or proceeding. 

14.    Relationship Among Parties; No “Group”. It is understood and agreed
that no Supporting Term Lender has any duty of trust or confidence of any kind or form with respect to any other Supporting Term Lender and, except as expressly provided in this Agreement, there are no commitments between or among them. No prior
history, pattern or practice of sharing confidences between or among the Supporting Term Lenders or the Borrowers shall in any way 

  
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affect or negate this Agreement. No Supporting Term Lender shall, as a result of its entering into and performing its obligations under this Agreement, be deemed to be part of a “group”
(as that term is used in Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder) with any of the other Supporting Term Lenders.. 

15.    Notices. Any notice, request, instruction or other document to be given
hereunder by any Party to the others shall be in writing and delivered personally or sent by registered or certified mail, postage prepaid, by email or overnight courier. 

(a)    If to the Supporting Term Lenders, or counsel to the Supporting Term Lenders, to counsel at: 

Derek Dostal 

Damian Schaible 

Davis Polk & Wardwell LLP 

450 Lexington Avenue 

New York, New York 10017 

Derek.Dostal@davispolk.com 

Damian.Schaible@davispolk.com 

(b) If to the Borrowers, to: 

Katherine Hargis 

Vice President, Chief Legal Officer and Secretary 

Key Energy Services, Inc. 

1301 McKinney Street, Suite 1800 

Houston, Texas 77010 

khargis@keyenergy.com 

With a courtesy copy (that does not constitute notice) to: 

Alison Ressler 

Ari Blaut 

Pat Brown 

Sullivan & Cromwell LLP 

125 Broad Street 

New York, New York 10004 

resslera@sullcrom.com 

blauta@sullcrom.com 

brownp@sullcrom.com 

16.    Severability. 

Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement. In the event that any part of this Agreement is 

  
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declared by any court or other judicial or administrative body to be null, void or unenforceable, said provision survives to the extent it is not so declared, and all of the other provisions of
this Agreement remain in full force and effect only if, after excluding the portion deemed to be unenforceable, the remaining terms provide for the consummation of the transactions contemplated hereby in substantially the same manner as originally
set forth at the later of the date this Agreement was executed or last amended. 

17.    Mutual Drafting. This Agreement is the result of the Parties’ joint
efforts, and each of them and their respective counsel have reviewed this Agreement and each provision hereof has been subject to the mutual consultation, negotiation, and agreement of the Parties, and the language used in this Agreement shall be
deemed to be the language chosen by the Parties to express their mutual intent, and therefore there shall be no construction against any Party based on any presumption of that Party’s involvement in the drafting thereof. 

18.    Headings. The headings used in this Agreement are for convenience of reference
only and do not constitute a part of this Agreement and shall not be deemed to limit, characterize, or in any way affect any provision of this Agreement, and all provisions of this Agreement shall be enforced and construed as if no headings had been
used in this Agreement. 
 19.    Waivers and Amendments. Notwithstanding anything
to the contrary contained herein, this Agreement, including any exhibits and schedules hereto (including any provision in the Term Sheet and any exhibits and schedules thereto) may not be changed, modified, amended, or supplemented, nor shall any
provision or requirement hereof be waived, without the prior written agreement (which may include electronic mail by counsel to the applicable parties) of the Borrowers and the Required Supporting Term Lenders; provided, that (a) the
definition of Required Supporting Term Lenders; (b) the provisions of this Section 19; and (c) the following sections of the Term Sheet: (i) Treatment of Existing Debt, (ii) Governance, and (iii) the Credit Facilities,
Maturity, Interest Rate, and Initial Payment sections identified in the New Term Facility Term Sheet Summary, shall not be amended or modified without the consent of all Supporting Term Lenders; provided, further that, any changes,
modifications, amendments, supplements or waivers and any proposed change, modification, amendment or supplement to, or waiver of, any provision of this Agreement and any terms in the Term Sheet that would or would reasonably be expected to
materially and adversely affect any Supporting Term Lender in a manner that is disproportionate to any other Supporting Term Lender or the Supporting Term Lenders as a whole, may not be made without the prior written consent of the Borrowers and
each Supporting Term Lender that would be so affected. 
 20.    Specific Performance.

 It is understood and agreed by the Parties that money damages may be an insufficient remedy for any breach of this
Agreement by any Party, that such breach may represent irreparable harm, and that each non-breaching Party shall be entitled to seek specific performance and injunctive or other equitable relief (without the
posting of any bond and without proof of actual damages) as a remedy of any such breach, including an order of a court of competent jurisdiction requiring any Party to comply promptly with any of its obligations hereunder. Notwithstanding anything
to the contrary in this Agreement, in no event shall any Party or their representatives be liable to any other Party hereunder for any punitive, incidental, consequential, special or indirect damages, including the loss of future revenue or income
or opportunity, relating to the breach or alleged breach of this Agreement. 

  
 12 

 21.    Indemnification. 

The Company hereby agrees to indemnify each Supporting Term Lender for reasonable and documented out-of-pocket fees and disbursements of one firm of counsel and one local counsel for all such Supporting Term Lenders, taken as a whole (and, solely in the case of an actual
conflict of interest between Supporting Term Lenders, one (1) additional counsel to the affected Supporting Term Lenders) incurred by the Supporting Term Lenders in connection with the defense of any claims, causes of action, lawsuits or other
legal or threatened legal actions, whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations) on common law or equitable cause or on contract or
otherwise, asserted against such Supporting Term Lender, in any manner arising from or related in any way to the transactions or events giving rise to, or any claim that is treated as rising under, the Exchange or the negotiation, formulation, or
preparation of this Agreement, the Definitive Restructuring Documents or the related documents, guarantees, security documents, agreements, instruments, or other documents. 

22.    Disclosure. 

The Borrowers shall submit drafts to the advisors to the Supporting Term Lenders of any press releases and public documents
that constitute the disclosure of the existence or terms of this Agreement at least one calendar day or as soon as reasonably practicable prior to making any such disclosure, and the Borrowers shall consult with such advisors in good faith regarding
the form and substance of such disclosure(s). No Party or its advisors shall disclose to any person or entity the amount or percentage of any claims or other interests held by, or the identity of, any Supporting Term Lender without such Supporting
Term Lender’s prior written consent, provided that the Borrowers may disclose such information to the extent necessary pursuant to law, regulation, legal process, securities law disclosure requirements, or at the request of any
regulatory authority, self-regulatory authority or other applicable judicial or governmental order or other legally compulsory act. 

23.    Survival. 

Notwithstanding the termination of this Agreement in accordance with its terms, the agreements and obligations of the Parties
in this Section 23 and Sections 1(b), 10, 11, 12, 13, 14, 16, 17, 18, 20, 21, and 22 shall survive such termination and shall continue in full force and effect for the benefit of the Parties in accordance with the terms hereof. 

[Signature Pages Follow] 

  
 13 

 IN WITNESS WHEREOF, this RSA has been duly executed as of the date first
above written. 
  

			
	KEY ENERGY SERVICES, INC.
		
	By:	 	/s/ J. Marshall Dodson
	Name:	 	J. Marshall Dodson
	Title:	 	 Interim Chief Executive Officer,
 Senior Vice
President and Chief Financial Officer

  

			
	KEY ENERGY SERVICES, LLC.
		
	By:	 	/s/ J. Marshall Dodson
	Name:	 	J. Marshall Dodson
	Title:	 	 Interim Chief Executive Officer,
 Senior Vice
President and Chief Financial Officer

 
					
	CORTLAND PRODUCTS CORP., as Agent solely as it relates to the terms of Section 9
		
	By	 	/s/ Matthew Trybula
		 	Name:	 	Matthew Trybula
		 	Title:	 	Associate Counsel

 
					
	 SPECIAL SITUATIONS INVESTING GROUP, INC.,

as a Lender

		
	By	 	/s/ Lee D. Becker
		 	Name:	 	Lee D. Becker
		 	Title:	 	Authorized Signatory

 
					
	 BLUEMOUNTAIN FOINAVEN MASTER FUND L.P.,

as a Lender

		
	By	 	/s/ David O’Mara
		 	Name:	 	David O’Mara
		 	Title:	 	Deputy General Counsel
	
	 BLUE MOUNTAIN CREDIT ALTERNATIVES MASTER FUND L.P.,

as a Lender

		
	By	 	/s/ David O’Mara
		 	 Name:
	 	David O’Mara
		 	 Title:
	 	Deputy General Counsel
	
	 BLUEMOUNTAIN GUADALUPE PEAK FUND L.P.,

as a Lender

		
	By	 	/s/ David O’Mara
		 	 Name:
	 	David O’Mara
		 	 Title:
	 	Deputy General Counsel
	
	 BLUEMOUNTAIN LOGAN OPPORTUNITIES FUND L.P.,

as a Lender

		
	By	 	/s/ David O’Mara
		 	 Name:
	 	David O’Mara
		 	 Title:
	 	Deputy General Counsel
	
	 BLUEMOUNTAIN MONTENVERS MASTER FUND SCA SICAV-SIF,

as a Lender

		
	By	 	/s/ David O’Mara
		 	 Name:
	 	David O’Mara
		 	 Title:
	 	Deputy General Counsel
	
	 BLUEMOUNTAIN SUMMIT TRADING L.P.,

as a Lender

		
	By	 	/s/ David O’Mara
		 	 Name:
	 	David O’Mara
		 	 Title:
	 	Deputy General Counsel
	
	 BLUEMOUNTAIN TIMBERLINE LTD.,

as a Lender

		
	By	 	/s/ David O’Mara
		 	 Name:
	 	David O’Mara
		 	 Title:
	 	Deputy General Counsel

 
					
	 BLUEMOUNTAIN KICKING HORSE FUND L.P.,

as a Lender 

		
	By	 	 /s/ David O’Mara 

		 	Name:	 	 David O’Mara 

		 	Title:	 	Deputy General Counsel

 
					
	 TENNENBAUM ENERGY OPPORTUNITIES CO, LLC

TCP WATERMAN CLO, LLC

TENNENBAUM SENIOR LOAN OPERATING III, LLC

TENNENBAUM SENIOR LOAN FUNDING III, LLC
 TENNENBAUM
SENIOR LOAN FUND V, LLC

	
	as Lenders
	
	On behalf of each of the above entities:

 
					
	By:	 	TENNENBAUM CAPTIAL PARTNERS, LLC
	Its:	 	Investment Manager

 
					
		
	By	 	/s/ Michael Leitner
		 	Name:	 	Michael Leitner
		 	Title:	 	Managing Director
	
	TCP ENHANCED YIELD FUNDING I, LLC
	
	As Lender
		
	By:	 	Tennenbaum Enhanced Yield Operating I, LLC
	Its:	 	Sole Member
		
	By:	 	Tennenbaum Capital Partners, LLC
	Its:	 	Investment Manager

 
					
		
	 By
	 	/s/ Michael Leitner

 
					
	Name:	 	 Michael Leitner 

	Title:	 	 Managing Director 

 
					
	 SOTER CAPITAL, LLC,
 as a
Lender 

		
	By	 	/s/ Mary Ann Sigler
	Name:	 	 Mary Ann Sigler 

	Title:	 	 President and Treasurer 

 
			
	 WHITEBOX ASYMMETRIC PARTNERS, L.P.,

as a Lender 

	 By: Whitebox Advisors LLC its investment manager

			
		
	By	 	/s/ Luke Harris

 
			
	Name:	 	 Luke Harris

	Title:	 	 General Counsel – Corporate, Transactions & Litigation

 
			
	 WHITEBOX CAJA BLANCA FUND, LP,

as a Lender 

	 By:WHITEBOX CAJA BLANCA GP LLC its general partner

	 By: WHITEBOX ADVISORS LLC its investment manager

			
		
	By	 	/s/ Luke Harris

 
			
	Name:	 	 Luke Harris

	Title:	 	 General Counsel – Corporate, Transactions & Litigation

 
			
	 WHITEBOX RELATIVE VALUE PARTNERS, L.P.,

as a Lender 

	 By: WHITEBOX ADVISORS LLC its investment manager 

			
		
	By	 	/s/ Luke Harris

 
			
	Name:	 	 Luke Harris

	Title:	 	 General Counsel – Corporate, Transactions & Litigation

 
			
	 WHITEBOX CREDIT PARTNERS, L.P.,

as a Lender 

	 By: WHITEBOX ADVISORS LLC its investment manager 

			
		
	By	 	/s/ Luke Harris

 
			
	Name:	 	 Luke Harris

	Title:	 	 General Counsel – Corporate, Transactions & Litigation

 
			
	 WHITEBOX MULTI-STRATEGY PARTNERS, L.P.,

as a Lender 

	 By: Whitebox Advisors LLC its investment manager 

			
		
	By	 	/s/ Luke Harris

 
			
	Name:	 	 Luke Harris

	Title:	 	 General Counsel – Corporate, Transactions & Litigation

 SCHEDULE 1 

HOLDINGS OF SUPPORTING TERM LENDERS 
  

					
	 Supporting Term Lender
	  	Principal Amount
of Term Loan	 
	 SPECIAL SITUATIONS INVESTING GROUP, INC.
	  	$	[***]	 
	 BLUEMOUNTAIN FOINAVEN MASTER FUND L.P.
	  	 	[***]	 
	 BLUEMOUNTAIN CREDITALTERNATIVES MASTER FUND L.P.
	  	 	[***]	 
	 BLUEMOUNTAIN GUADALUPE PEAK FUND L.P.
	  	 	[***]	 
	 BLUEMOUNTAIN LOGAN OPPORTUNITIES FUND L.P.
	  	 	[***]	 
	 BLUEMOUNTAIN MONTENVERS MASTER FUND SCA SIC
AV-SIF
	  	 	[***]	 
	 BLUEMOUNTAIN SUMMIT TRADING L.P.
	  	 	[***]	 
	 BLUEMOUNTAIN TIMBERLINE LTD.
	  	 	[***]	 
	 BLUEMOUNTAIN KICKING HORSE FUND L.P.
	  	 	[***]	 
	 TENNENBAUM ENERGY OPPORTUNITIES CO, LLC

TCP WATERMAN CLO, LLC

TENNENBAUM SENIOR LOAN OPERATING III, LLC

TENNENBAUM SENIOR LOAN FUNDING III, LLC

TENNENBAUM SENIOR LOAN FUND V, LLC

TCP ENHANCED YIELD FUNDING I, LLC
	  	 	[***]	 
	 SOTER CAPITAL, LLC
	  	 	[***]	 
	 WHITEBOX ASYMMETRIC PARTNERS, L.P.
	  	 	[***]	 
	 WHITEBOX CAJA BLANCA FUND, LP
	  	 	[***]	 
	 WHITEBOX RELATIVE VALUE PARTNERS, L.P.
	  	 	[***]	 
	 WHITEBOX CREDIT PARTNERS, L.P.
	  	 	[***]	 
	 WHITEBOX MULTI-STRATEGY PARTNERS, L.P.
	  	 	[***]	 
		  	  
	  
	 
	 Total
	  	$	241,909,374.87	 
		  	  
	  
	 

 Exhibit A 

Term Sheet 

 KEY ENERGY SERVICES, INC.

 SUMMARY OF TERMS AND CONDITIONS OF
RESTRUCTURING TRANSACTION 
  

	 Company: 
	 Key Energy Services, Inc., a Delaware corporation (the “Company”). 

 

	 Implementation of Restructuring and Required Approvals 
	 The Restructuring shall be implemented as a private, out of court transaction and structured in a tax and cost efficient manner for the
Company. 

  

	 	 Platinum Equity Advisors, LLC (together with its controlled affiliates, “Platinum”) shall vote (or
provide written consent in lieu of a shareholder vote) to approve the Restructuring, with further amendments to corporate charter and bylaws consistent with the provisions of the Governance annex attached hereto. 

 

	 	 Subject to fiduciary duties, no M&A transaction shall be effected during the interim period between the
agreement of this term sheet and the closing of the transaction (the “Closing”) without the affirmative consent of the Required Consenting Term Lenders. 

 

	 Treatment of ABL Facility: 
	 The Loan and Security Agreement, dated as of December 15, 2016 (as amended, modified or supplemented from time to time, the
“ABL Credit Agreement”), shall be amended and restated or refinanced on terms to be mutually agreed. 

  

	 	 Company to negotiate in good faith with existing ABL lenders to reduce the Minimum Availability Covenant (as
defined in the ABL Credit Agreement), increase advance rates and allow for additional collateral to be introduced as eligible collateral for purposes of the borrowing base (such collateral to be agreed). 

 

	 Treatment of Existing Debt: 
	 Supporting Term Lenders shall exchange all of their Term Loans into newly issued common shares of the Company representing 97% of the
Company’s equity interest (subject to dilution by the New Warrants and MIP (each as defined below)) and Supporting Term Lenders shall receive $20 million of term loans under the New Term Facility (as defined below, and such exchanged term
loans, the “Exchange Term Loans”) on a pro rata basis; 

  
 1 

	 	 provided, that each Supporting Term Lender may allocate the Exchange Term Loans in its sole discretion
among all accounts and funds managed by such Supporting Term Lender or any affiliate of such Supporting Term Lender. 

  

	 	 If the exchange closes with 100% participation, the shares issued to the Supporting Term Lenders will not
change. 

  

	 Treatment of Unsecured Claims: 
	 Trade and other unsecured obligations shall be unimpaired and paid or satisfied in the ordinary course of business.

  

	 Treatment of Existing Equity Holders: 
	 Existing equity holders continue to hold at least 3% of the outstanding shares of the Company pro forma for the exchange
of the Term Loan (subject to dilution by the New Warrants and MIP). 

  

	 	 Two series of warrants (the “New Warrants”) with a: i) four-year exercise period for 10.0% of
the common shares of the Company on an as-exercised basis (after giving effect to the exercise of all New Warrants, but subject to dilution by the MIP) with a strike price equal to an equity value of par plus
accrued interest (at the default contract rate) of the Term Loan and ii) four-year exercise period for 7.5% of the common shares of the Company on an as-exercised basis (after giving effect to the exercise of
all New Warrants, but subject to dilution by the MIP) with a strike price equal to an equity value of par plus accrued interest (at the default contract rate) of the Term Loan multiplied by 1.50. 

 

	 	 New Warrants will be subject to customary Black- Scholes protections, based on
pre-agreed parameters to be applied to the Black-Scholes formula, in case of a change-of-control sale or similar transaction
during the term of the warrants, with any payments under such protections to be capped at $10 million and subject to sun setting provisions after 18 months. 

 

	 	 All transactions trigger Black Scholes protections if cash consideration exceeds 10% of proceeds.

  
 2 

	 Treatment of Existing Warrant Holders: 
	 Treatment to be mutually agreed, subject to compliance with agreements governing the Warrants 

 

	 New Term Loan: 
	 $51,214,995.13 facility (the “New Term Facility”), which includes $1,214,995.13 of existing term loans.

  

	 	 Terms of the New Term Facility are outlined in the “New Term Facility Term Sheet Summary.”

  

	 	 New Term Facility to be made available to all Supporting Term Lenders on a pro rata basis. Backstop for
funding as follows: 

  

	 	 $7.5 million of the New Money Term Loan (as defined below) to be provided by Platinum, remaining amount
of New Money Term Loan to be provided by all Supporting Term Lenders (including Platinum) on a pro rata basis. 

  

	 New Employee Equity Plan: 
	 The “Managing Incentive Plan” or “MIP”. Terms to be mutually agreed, but to represent up to 9% of the
newly issued common shares of the Company. Day-1 allocations and amounts reserved for future issuances to be mutually agreed. 

  

	 	 Such MIP to be subject to key employees, the list of which to be mutually agreed, entering into waivers to
applicable severance agreements providing that the out-of-court transaction will not constitute a “change in control” for purposes of such agreements, which
waivers will be in a form satisfactory to the Supporting Term Lenders. 

  

	 Board, Governance And Listing: 
	 Governance terms outlined in the Governance section of this Term Sheet. 

  
 3 

	 Releases: 
	 The documentation for the Restructuring shall include customary mutual releases in favor of the Company, the Supporting Term Lenders (in
all capacities, including as equity holders), the Term Loan Agent and each of their respective current and former directors, officers, shareholders, employees, advisors, partners, legal counsel and agents. 

 

	 	 Documentation shall also include appropriate indemnification provisions by the Company of any post-closing
costs / liabilities of the Supporting Term Lenders and the Term Loan Agent. 

  

	 Governing Law: 
	 The documentation for the Restructuring shall be governed by the laws of the state of New York.

  

	 Fees and Expenses: 
	 The reasonable fees and expenses incurred by the Supporting Term Lenders (including the fees and expenses of Perella Weinberg Partners
(“PWP”), Davis Polk & Wardwell LLP (“Davis Polk”), the Term Loan Agent and Milbank LLP (“Milbank”), counsel to Tennenbaum Capital Partners, LLC (“BlackRock”); provided that Milbank’s fees shall
be capped at $100,000 and the Company shall not be responsible for any fees of Milbank incurred after January 14, 2020) in connection with the transactions contemplated by this Term Sheet shall be paid by the Company 

 

	 Closing Conditions: 
	 Company to deliver to lenders under the Term Loan Agreement the results of the HilCo Appraisal (but the results of such appraisal shall
not be a condition precedent to the Restructuring). 

  

	 	 Delivery of proxy statement or information statement pursuant to SEC rules. 

 

	 	 Resignation of number of existing directors to give effect to board appointment right described above.

  

	 	 Company employees to enter into new, amended employment agreements satisfactory to the Supporting Term
Lenders. 

  
 4 

 Governance: 
  

	 Board of Directors: 
	 Board Size: At Closing, the board of directors shall consist of 7 directors, including the CEO, 5 directors that
shall constitute independent directors under SEC rules and NYSE listing rules (irrespective of whether the Company is listed on any exchange) and one director who may or may not be independent. 

 

	 	 Initial Appointment Right: Supporting Term Lenders to appoint new Board of Directors according to the
following thresholds based on pro forma equity ownership at Closing: 2 seats if over 25% and 1 seat if between 10-25%, such that each of Goldman Sachs and BlueMountain gets 2 seats and each of Platinum and
BlackRock gets 1 seat; provided that Platinum shall be entitled to initially appoint at least 1 non-independent director, provided further that the directors appointed by Supporting Term Lenders, other than
Platinum, shall be independent under SEC rules and NYSE listing rules (irrespective of whether the Company is listed on any exchange) and shall not be consultant to or employee of such equityholder. 

 

	 	 Whitebox shall be entitled to one board observer as long as it maintains at least 85% of its pro-forma equity ownership as of the Closing. 

  

	 	 Ongoing Nomination Rights: Ongoing nomination rights for Supporting Term Lenders subject to minimum
equity threshold percentages (i.e., 2 seats if over 25% and 1 seat if between 10%-25%), subject to applicable law with respect to director independence, it being understood that future nominees of Supporting
Term Lenders (other than Platinum) shall be independent under SEC rules and NYSE listing rules (irrespective of whether the Company is listed on any exchange) and shall not be consultant to or employee of such equityholder. To the extent that
Platinum maintains a nomination right as set forth above, one director nominated by Platinum need not be independent under SEC or NYSE listing rules, as applicable. The ongoing nomination rights set forth above shall be transferable as follows: A
holder (including a subsequent holder) with the right to nominate one or 

	 	 
two directors may transfer that nomination right to a third party in connection with a transfer of its equity of the Company to such third party if, as a result of such transfer of equity, the
third party holds at least 10% of the Company’s equity (in the case of transferring the right to nominate a single director) or at least 25% (in the case of transferring the right to nominate two directors), it being understood that the
transferring holder will no longer have such nomination right upon completion of the transfer, regardless of the transferring holder’s equity ownership at such time. 

 

	 	 Ongoing Observer Rights: Other than with respect to Whitebox’s board observer rights set forth
above, Supporting Term Lenders that maintain pro forma equity ownership in excess of 5% shall be entitled to one board observer. 

  

	 	 All thresholds above to be based on TSO and pro forma equity holdings of Supporting Term Lenders as of
Closing. 

  

	 Shareholders’ Agreement: 
	 Registration Rights: At Closing, the Company and Supporting Term Lenders shall enter into a shareholders agreement
(the “Shareholders’ Agreement,” which shall be the sole shareholders’ agreement amongst such Supporting Term Lenders) containing customary terms for similar transactions, including providing provisions for the benefit of the
Supporting Term Lenders with respect to the following: 

  

	 	 Secondary Demand Registration Rights (up to 2 in any 365-day period)

  

	 	 Cutback on primary sales to the extent advised by underwriters that the offering could not accommodate both
primary and secondary offerings 

  

	 	 Customary piggyback rights in connection with both primary and secondary offerings, subject to customary
cutbacks 

  

	 	 Transactions with Affiliates. 

 

	 	 Governance documents to require all transactions with affiliates (including any transactions with a

	 	 party (or affiliate of a party) that has a board seat nomination right or is holder of more than 15% of the
common equity of the Company) in excess of $40 million be at arms’ length terms, and approved by a majority of the disinterested directors, subject to customary exceptions to be mutually agreed. 

 

	 	 Tag Along Rights. 

 

	 	 During a period when the Company (i) does not have a class of securities registered under Section 12
of the Securities Exchange Act and (ii) is not listed on any over-the-counter market or national securities exchange, in the event of a transfer by one or more
parties to the stockholder agreement (the “Tag Parties”) to an unaffiliated person or “group” of unaffiliated persons that constitutes more than 50% of the then-outstanding common shares, each other holder party to the
Shareholders’ Agreement shall have “tag-along” rights to participate, on a pro rata basis (based on its respective ownership of the common shares held by all such stockholders) in such sale on
the same terms, and subject to the same conditions as the initiating selling stockholder(s) (provided, that no tagging stockholder shall be required to agree to any restrictive covenants other than confidentiality not otherwise imposed on the Tag
Parties), with a corresponding reduction (except to the extent the buyer agrees to purchase additional common shares) in the number of common shares being sold by the Tag Parties to reflect the number of common shares that tagging stockholders elect
to sell in such sale. 

  

	 	 Drag Along Obligations. 

 

	 	 During a period when the Company (i) does not have a class of securities registered under Section 12
of the Securities Exchange Act and (ii) is not listed on any over-the-counter market or national securities exchange, in the event one or more parties to the
stockholder agreement receives and accepts an offer from an unaffiliated person or “group” of unaffiliated persons to transfer an amount that constitutes more than 50% of the then-outstanding common shares, each other holder party to the
Shareholders’ Agreement shall be subject to customary “drag along” obligations, which shall include an obligation to sell its equity in such transaction on identical terms. 

	 	 Preemptive Rights: 

 

	 	 During a period when the Company (i) does not have a class of securities registered under Section 12
of the Securities Exchange Act and (ii) is not listed on any over-the-counter market or national securities exchange, each shareholder party to the
Shareholders’ Agreement to have the right to participate in its pro rata portion (at the same price being offered to other parties) of any new shares of common stock or material debt issued by the Company (subject to customary exceptions).

  

	 	 Information Rights: Customary information, including quarterly and annual financial statements,
management discussion & analysis and quarterly conference calls (such rights will be deemed to be satisfied as long as Company remains subject to SEC reporting requirements). 

 

	 Other: 
	 The Company shall remain a Delaware C- Corporation. 

 

	 	 Other private company governance mechanics to be mutually agreed. 

 

	 Amendments: 
	 Charter / Bylaws: Amendments to Charter and Bylaws to implement the foregoing and to contemplate shareholder written consents so
long as Supporting Term Lenders collectively hold more than 50% of total voting power. Further amendments in respect of the foregoing governance matters to require consent of all holders of 10% or more of the common stock (subject to mutually agreed
exceptions) and of each holder adversely and disproportionately affected by such amendment. 

 New Term Facility Term Sheet Summary 

 

	 Borrower: 
	 Key Energy Services, Inc. (the “Company”) 

 

	 Guarantors: 
	 Each of the direct and indirect subsidiaries of the Company, subject to exceptions in the existing Term Loan Agreement
(the “guarantors”) 

  

	 Agent: 
	 Cortland Products Corp. 

  

	 Lenders: 
	 Supporting Term Lenders 

  

	 Credit Facilities: 
	 $51,214,995.13 (the “Total Facility Amount”) comprised of $30 million of new term loans funded by
the Supporting Term Lenders on the Initial Funding Date (the “New Money Term Loans”), $20 million in Exchange Term Loans and $1,214,995.13 of existing term loans (the “Specified Existing Term Loans”);
provided that the Specified Existing Term Loans shall not be subject to provisions described under “Maturity”, “Prepayment Premium” and “Prepayments” set forth below. 

 

	 Use of Proceeds: 
	 Proceeds of the New Money Term Loans shall be applied for capital expenditures, working capital and other general
corporate purposes 

  

	 Initial Funding Date: 
	 The date of the consummation of the Restructuring Transaction 

 

	 New Money Term Loan Funding: 
	 $7.5 million to be provided by Platinum, with the remainder to be provided by all Supporting Term Lenders (including
Platinum) on a pro rata basis 

  

	 Maturity 
	 The date that is 5.50 years after the initial funding date 

 

	 Interest Rate 
	 A fixed rate of L+10.25% payable semi-annually, or, until the second anniversary of the Closing Date, a L+12.25% PIK
option (exercisable by the Company in its sole discretion) for the New Money Term Loan and Exchange Term Loan 

  

	 	 All rates shall be calculated on a 360-day basis

  

	 Admin Fee: 
	 To be mutually agreed 

  

	 Prepayment Premium: 
	 Prepayment premium, payable on the full Total Facility Amount, subject to waiver by
two-thirds of holders of the New Term Facility, which shall be owed and payable upon a change of control, merger, sale of all or substantially all assets, acceleration, default, bankruptcy, insolvency,
redemption or 

	 	 
prepayment (whether mandatory or at the reorganized company’s option) 

  

	 	 Prepayment premium is equal to (i) 3%, from the Closing to (but excluding) the first anniversary of Closing,
(ii) 2%, on and after the first anniversary of the Closing to (but excluding) the second anniversary of the Closing, (iii) 1%, on and after the second anniversary of the Closing to (but excluding) the third anniversary of the Closing Date and (iv)
0%, on and after the third anniversary of the Closing 

  

	 Amortization: 
	 None 

  

	 Prepayments: 
	 Mandatory prepayments (subject to customary exceptions and baskets to be agreed by the parties) from debt issuances (in
violation of the credit agreement), excess cash flow, asset sales, tax refunds and other extraordinary receipts and insurance/condemnation proceeds 

  

	 Collateral: 
	 Perfected first lien security interest on all assets and equity interests of the Company, except ABL collateral on which
the New Term Facility will have a perfected second lien security interest, subject to customary permitted liens and exceptions 

  

	 Financial Covenants: 
	 To be determined 

  

	 Affirmative Covenants: 
	 Customary and appropriate for transactions of this type to be mutually agreed 

 

	 Negative Covenants: 
	 Customary and appropriate for transactions of this type to be mutually agreed 

 

	 Representations Warranties: 
	 Customary and appropriate for transactions of this type to be mutually agreed 

 

	 Initial Payment: 
	 1% of the New Money Term Loans, payable to the Supporting Term Lenders on a ratable basis in accordance with their
commitments in respect of the New Money Term Loans, shall be fully earned and payable on the Initial Funding Date 

  

	 Other Conditions 
	 Conditioned upon the closing of the exchange transaction

	 	 
100% amendment/waiver threshold for customary and agreed “sacred” rights (including, without limitation, subordination of liens or claims) 

 

	 	 Other conditions to be determined 

 

	 Choice of Law: 
	 New York 

 Exhibit B 

Transfer Agreement 

 EXHIBIT B 

TRANSFER AGREEMENT 

The undersigned (“Transferee”) hereby acknowledges that it has read and understands the Restructuring Support
Agreement, dated as of [•], 2020 (the “Agreement”), by and among Key Energy Services, Inc., a Delaware corporation, Key Energy Services, LLC, a Texas limited liability company, [TRANSFEROR’S NAME]
(“Transferor”), Cortland Products Corp., and certain other Supporting Term Lenders party thereto, and (i) agrees to be bound by the terms and conditions of the Agreement to the extent Transferor was thereby bound,
(ii) hereby makes all representations and warranties made therein by all other Supporting Term Lenders (as defined in the Agreement), and (iii) shall be deemed a Supporting Term Lender under the terms of the Agreement, in each case, solely
with respect to the Transferred Claims. The Transferee is acquiring the principal amount of the Term Loans from Transferor in the amounts set forth on Schedule 1 hereof (the “Transferred Amount”). All notices and other
communications given or made pursuant to the Agreement shall be sent to the Transferee at the address set forth below in the Transferee’s signature below. 

Date Executed:
                                         
        
  

					
		 	 [TRANSFEREE]

					
			
		 	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
			
		 	 Address:
	 	  

		 	  

		 	  

		 	 Attn:
	 	  

		 	 Fax:
	 	  

		 	 Email:Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of January _, 2020, by and between Cardax, Inc.,
a Delaware corporation (the “Company”), and Harbor Gates Capital, LLC, a Wyoming limited liability company
(the “Purchaser”). Certain capitalized terms used in this Agreement are defined in Section 1.1.

 

WHEREAS,
the Company is a public company with its shares of common stock, par value $0.001 per share (the “Common Stock”)
traded on the OTCQB under the symbol “CDXI”;

 

WHEREAS,
the Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities Act”);

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement the Company desires to sell to the Purchaser and the Purchaser
desires to purchase a convertible promissory note (the “Note”) for aggregate consideration of up to $250,000.00
in the form attached hereto as Exhibit I;

 

WHEREAS,
as a material inducement to the Purchaser to purchase the Note and to enter into this Agreement, the Purchaser has requested the
Company enter into that certain Security Agreement with even date herewith.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser, intending to be legally bound hereby,
hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following
terms have the meanings set forth in this Section 1.1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Business
Day” means any day except any Saturday, any Sunday, any day that is a federal legal holiday in the United States, or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Closing”
means the closing of the purchase and sale of the Note pursuant to Section 2.1.

 

“Closing
Date” means the date of the Note.

 

“Company
Sub” means Cardax Pharma, Inc., a Delaware corporation and a wholly owned subsidiary of the Company.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

    	 

    	 

    

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Purchase
Price” means the aggregate amount to be paid for the Note, which amount shall be paid by the Purchaser making a payment
to the Company as provided in this Agreement.

 

“Registration
Statement” means the registration statement filed by the Company with the Securities and Exchange Commission for the
public offering of Common Stock and warrants to purchase Common Stock (registration no. 333-233281).

 

“Securities”
means the Note, the Origination Shares, and any shares of Common Stock issued or issuable to the Purchaser under the Note.

 

“Short
Sale” means any securities transaction in which a Person sells a number of shares or other units of a security that
are not owned by such Person at the time of such sale.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, OTCQB or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Note, and all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transaction contemplated hereunder.

 

ARTICLE
II

PURCHASE AND SALE

 

2.1
Closing.

 

(a)
On the Closing Date, the Purchaser shall purchase the Note and the Company shall issue the Note.

 

2.2
Origination Shares.

 

(a)
As an investment incentive for the Purchaser to purchase the Note, the Company shall, on the thirty-first (31st) date
following the Closing Date (the “Origination Share Date”), issue to the Purchaser that number of additional
shares of Common Stock which shall be determined by dividing: (i) the numerator, which shall be equal to $25,000, and (ii) the
denominator of which shall be equal to the average of the volume weighted average prices of the Company’s Common Stock during
the five (5) Trading Days prior to the Origination Share Date (the “Origination Shares”). The Purchaser shall
provide written notice to the Company, as soon as reasonably practicable, of the number of Origination Shares that shall be issued
pursuant to this Section 2.3 (the “Notice Date”), and the Company shall, within five (5) business days of the
Notice Date, use its best efforts to issue and deliver the Origination Shares to the Holder, or its authorized designee.

 

    	2

    	 

    

 

2.3
Deliveries.

 

(a)
On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company a wire transfer for the Purchase Price
in accordance with the wire transfer instructions set forth on Schedule A to this Agreement.

 

(b)
On the Closing Date, the Company and the Purchaser shall close the purchase and sale of the Note and the Company shall promptly
deliver or cause to be delivered to the Purchaser evidence of the issuance and delivery of the Note and the Origination Shares
by appropriate instructions to the stock transfer agent of the Company.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

3.1
Representations and Warranties of the Company. The Company hereby makes the following representations and warranties to
the Purchaser as of the date hereof and as of the Closing Date (unless such representation is made as of a specific date therein
in which case such representation and warranty shall be accurate as of such date):

 

(a)
Organization and Qualification. Each of the Company and the Company Sub is an entity duly incorporated, validly existing,
and in good standing under the laws of the jurisdiction of its incorporation, with the requisite power and authority to own and
use its properties and assets and to carry on its business as currently conducted.

 

(b)
Capitalization. The capitalization of the Company is properly reflected in all material respects by the SEC Filings as
of the date indicated in such filings.

 

(c)
Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section
3.2, no registration under the Securities Act is required for the offer and sale of the Securities to the Purchaser as contemplated
hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market
applicable to the Company.

 

(d)
SEC Filings. The documents (the “SEC Filings”) that have been filed by the Company with the SEC do not
(as amended and supplemented) contain a material misstatement of fact or does not omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading, as interpreted
by the Exchange Act.

 

(e)
Financing Needs. The Company requires immediate financing through the offering of the securities under this Agreement to
acquire additional funds for certain working capital and general corporate purposes that are due and payable within 30 days and
if not paid would cause a material adverse effect to the Company, including the payment of payroll and other cash compensation
and insurance. Accordingly, the purpose of the offering under this Agreement is different than the planned use of proceeds from
the public offering described in the Registration Statement.

 

(f)
Board Approval. The board of directors of the Company, by resolutions duly adopted by unanimous written consent, a copy
of which is attached hereto as Exhibit II, has, as of the date hereof, duly approved this Agreement and the transactions
contemplated hereunder.

 

    	3

    	 

    

 

3.2
Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and
as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a)
Organization; Authority.

 

(i)
The Purchaser is either an individual or an entity that is duly incorporated or formed, validly existing, and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company, or similar power and authority to enter into and to consummate the transaction contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder.

 

(ii)
The execution and delivery of the Transaction Documents and performance by the Purchaser of the transaction contemplated by the
Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company, or similar
action, as applicable, on the part of the Purchaser.

 

(iii)
Each Transaction Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against
it in accordance with its terms, except: (a) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally;
(b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies; and
(c) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)
Own Account. The Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling the Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other person to
distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting the Purchaser’s right to sell the Securities in compliance with applicable
federal and state securities laws). The Purchaser is acquiring the Securities hereunder in the ordinary course of its business
or investment strategy.

 

(c)
Purchaser Status. At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is an “accredited
investor” as defined in Rule 501 under the Securities Act; or (ii) a Non U.S. Person within the meaning of Regulation S
under the Securities Act. The information provided by the Purchaser to the Company in the Certificate of Accredited Investor Status
is true and correct.

 

(d)
Experience of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)
No Short Sales. The Purchaser shall not directly or indirectly, nor shall any Person acting on behalf of or pursuant to
any understanding with the Purchaser, execute any Short Sales of the securities of the Company while the Note is outstanding.

 

(f)
Disclosure.

 

(i)
The Purchaser acknowledges and agrees that the information provided and available to the Purchaser at the time that this Agreement
is executed and delivered (including, but not limited to the SEC Filings) (the “Execution Date Information”)
may not include all of the material information that would be provided to a purchaser of securities in an offering of securities
that is registered under the Securities Act and included in a prospectus that is required to be delivered in accordance with Section
5 of the Securities Act. Additionally, the Purchaser acknowledges that it will not have the benefits of the disclosures and the
civil remedies that flow from an offering registered under the Securities Act.

 

    	4

    	 

    

 

(ii)
The Purchaser agrees that it has had an opportunity to conduct its due diligence on the investment and in connection therewith:
(a) obtain additional information concerning investment in the Securities, including without limitation, information concerning
the Company and any other matters relating directly or indirectly to the purchase of the Securities by the Purchaser; (b) ask
questions of, and receive answers from, the executives of the Company concerning the terms and conditions of investment in the
Securities and to obtain such additional information as may have been necessary to verify the accuracy of any information that
may have been provided to the Purchaser; and (c) acknowledges that the only information the Purchaser relied upon is information
or documentation that was provided expressly by the Company to the Purchaser for such purposes. The Purchaser acknowledges that
it has had information about the Company by reference to the SEC Filings other than the Registration Statement.

 

(iii)
The Purchaser and/or Purchaser’s advisor acknowledges that it has received and reviewed the SEC Filings, including the summary
of risks contained in the “Risk Factors” sections in such documents and Schedule B and certain matters regarding
the use of proceeds set forth in Section 4.3 and had access to or been furnished with sufficient facts and information
to evaluate an investment in the Company and a reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of the Company concerning the Company and all such questions have been answered to the full satisfaction
of the Purchaser. The Purchaser acknowledges that in addition to the risks summarized in Schedule B, there is a risk that the
public offering contemplated by the Registration Statement will not be consummated, that the Company may abandon the Registration
Statement for any reason, including without limitation, market conditions or any decision by the lead underwriter described therein,
which decision is in the sole and absolute discretion of such underwriter. The Purchaser acknowledges it would purchase the securities
to be issued by the Company under this Agreement even if the Company does not complete the public offering described in the Registration
Statement.

 

(g)
Solicitation. The Purchaser acknowledges that it did not become interested in the purchase of securities to be issued by
the Company through any general solicitation or advertisement, including the Registration Statement. The Purchaser acknowledges
that it was not identified or contacted through the marketing of the public offering under the Registration Statement and the
Purchaser did not independently contact the Company as a result of any solicitation by any broker dealer, including the lead underwriter
specified in the Registration Statement.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transaction contemplated hereby.

 

    	5

    	 

    

 

ARTICLE
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1
Transfer Restrictions.

 

(a)
The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of
any of the Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate
of the Purchaser, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the
transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities
Act.

 

(b)
Legend on Share Certificates. The Purchaser agrees to the imprinting, so long as is required by this Section 4.1,
of a legend on any of the certificates representing the Securities in the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE
SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

(c)
The legends set forth in Section 4.1(b) shall, to the fullest extent permitted, be removed (i) while a registration statement
covering the resale of such security is effective under the Securities Act, (ii) following any sale of the Securities pursuant
to Rule 144, (iii) if the Securities are eligible for sale under Rule 144, without the requirement for the Company to be in compliance
with the current public information required under Rule 144 as to the Securities and without volume or manner-of-sale restrictions,
or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the SEC).

 

(d)
The Purchaser agrees that it will sell any Securities only pursuant to either: (i) the registration requirements of the Securities
Act, including any applicable prospectus delivery requirements; or (ii) an exemption therefrom, and that if the Securities are
sold pursuant to any such effective registration statement, they will be sold in compliance with the plan of distribution set
forth therein, and acknowledges that the removal of the restrictive legend from certificates representing the Securities set forth
in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

 

4.2
Non-Public Information. Except with respect to the material terms and conditions of the transaction contemplated by the
Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide
the Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto the Purchaser, agent, or counsel shall have entered into a written agreement with the Company regarding the
confidentiality and use of such information or such Person is otherwise obligated to maintain the confidentiality of such information
and not use such information in violation of applicable law. The Company understands and confirms that the Purchaser shall be
relying on the foregoing covenant in evaluating and providing any information it receives in connection with its consideration
of purchasing the Securities.

 

4.3
Use of Proceeds. The Company will use the proceeds from this transaction for its product development, commercialization,
and general corporate purposes.

 

    	6

    	 

    

 

4.4
Replacement of Certificates. If any certificate or instrument evidencing the Securities is mutilated, lost, stolen, or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the
case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft, or destruction. The applicant for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance
of such replacement Securities and may be required to provide an indemnity in favor of the Company.

 

ARTICLE
V

MISCELLANEOUS

 

5.1
Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the
fees and expenses of its advisers, counsel, accountants, and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery, and performance of this Agreement.

 

5.2
Entire Agreement. The Transaction Documents contain the entire understanding of the parties with respect to the subject
matter thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the
parties acknowledge have been merged into such documents, exhibits, and schedules.

 

5.3
Notices. All notices (including any consent required of any party to the Transaction Documents) given or permitted to be
provided pursuant to the Transaction Documents shall be in writing and shall be mailed by certified mail, delivered by professional
courier or hand, or transmitted via email. The Purchaser may change the address that notices should be delivered to it by delivering
a notice with the corrected information to the Company. The Company may change the address that notices should be delivered to
it by delivering a notice with the corrected information to the Purchaser then a party to this Agreement. In each case, such corrected
information to be effective only upon delivery of such notice. Except as otherwise expressly provided in the Transaction Documents,
each such notice shall be effective on the date three days after the date of mailing or, if delivered by hand or professional
courier, or transmitted via email with delivery receipt (or acknowledgement or confirmation which may be by electronic means),
on the date of delivery, provided, however, that notices to the Company will be effective upon receipt.

 

5.4
Amendments; Waivers. No provision of the Transaction Documents may be waived, modified, supplemented or amended except
by means of a written agreement signed, in the case of an amendment, by the Company and the Purchaser subject to such waiver,
modification, supplement or amendment. No waiver of any default with respect to any provision, condition or requirement of the
Transaction Documents shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver
of any other provision, condition or requirement thereof, nor shall any delay or omission of any party to exercise any right thereunder
in any manner impair the exercise of any such right.

 

5.5
Headings. The headings in the Transaction Documents are for convenience only, do not constitute a part of the Transaction
Documents and shall not be deemed to limit or affect any of the provisions thereof.

 

5.6
Successors and Assigns. The Transaction Documents shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns. The Company may not assign the Transaction Documents or any rights or obligations thereunder
without the prior written consent of the Purchaser (other than by merger). The Purchaser may assign any or all of its rights under
this Agreement to any Person; provided that such assignment is approved by the Company, which approval shall not be unreasonably
withheld, delayed or conditioned and such transferee agrees in writing to be bound by the provisions of the Transaction Documents
that apply to the “Purchaser” and such transferee is able and makes the representations and warranties to the Company
provided under Section 3.2.

 

    	7

    	 

    

 

5.7
Third-Party Beneficiaries. The Transaction Documents are intended for the benefit of the parties thereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any provision thereof be enforced by, any other Person.

 

5.8
Governing Law. The Transaction Documents are to be construed in accordance with and governed by the laws of the State of
New York, without giving effect to the conflict of laws principles thereof.

 

5.9
Attorney Fees. If one or more parties shall commence an action, suit, or proceeding to enforce any provision of the Transaction
Documents, then the prevailing party or parties in such action, suit, or proceeding shall be reimbursed by the other party or
parties to such action, suit, or proceeding for the reasonable attorneys’ fees and other costs and expenses incurred by
the prevailing party or parties with the investigation, preparation, and prosecution of such action, suit, or proceeding.

 

5.10
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities
for the applicable statute of limitations.

 

5.11
Counterparts and Execution. The Transaction Documents may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event
that any signature is delivered by email delivery of a “.pdf” format data file, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such “.pdf” signature page was an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of any Transaction Document is held by a court of competent
jurisdiction to be invalid, illegal, void, or unenforceable, the remainder of the terms, provisions, covenants, and restrictions
set forth therein shall remain in full force and effect and shall in no way be affected, impaired, or invalidated, and the parties
thereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant, or restriction. It is hereby stipulated and declared to
be the intention of the parties that they would have executed the remaining terms, provisions, covenants, and restrictions without
including any of such that may be hereafter declared invalid, illegal, void, or unenforceable.

 

5.13
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

5.14
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto.

 

[signature
page follows]

 

    	8

    	 

    

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

Cardax,
inc. 

 

	By:	 	 
	Name: 	David G. Watumull	 
	Title:	President and CEO	 

 

Harbor
Gates Capital, LLC

 

	By:	 	 
	Name: 	 	 
	Title:	 	 

 

    	 

    	 

    

 

SCHEDULE
A

 

Wire
Transfer Instructions

 

[provided
separately]

 

    	 

    	 

    

 

SCHEDULE
B

 

Certain
Additional Risk Factors

 

In
addition to the risk factors summarized in the Company’s SEC Filings, you should consider the following:

 

An
investment in the Securities involves a high degree of risk. You should carefully consider the risks summarized in the Company’s
SEC Filings, together with all of the other information provided to you in this Agreement, before making an investment decision.
If any of the following risks actually occur, our business, financial condition or results of operations could suffer. In that
case, the trading price of our shares of Common Stock could decline, and you may lose all or part of your investment. You should
read the section entitled “Forward-Looking Statements” included in our SEC Filings for a discussion of what types
of statements are forward-looking statements, as well as the significance of such statements.

 

The
terms of this transaction and the purchase price for the Securities were not independently valued and may not be indicative of
the future price of Common Stock. 

 

Our
board of directors determined the terms and conditions of this transaction, including the purchase price of the Securities. The
purchase price of the Securities was not necessarily determined to be equal to the market price of the Common Stock on the OTCQB
or the fair value of the Company. If you purchase the Securities, you may not be able to sell any of the Securities at or above
the purchase price. The trading price of the Common Stock will be determined by the marketplace and will be influenced by many
factors outside of the Company’s control, prevailing interest rates, investor perceptions, securities analyst research reports
and general industry, geopolitical, and economic conditions. Publicly traded stocks, including stocks of pharmaceutical and nutraceutical
companies, often experience substantial market price volatility. These market fluctuations might not be related to the operating
performance of particular companies whose shares are traded. Accordingly, we cannot assure you that if you purchase the Securities
you will later be able to sell any of the Securities at or above the purchase price.

 

The
Securities are “Restricted Securities” under the Securities Act and there is no assurance they will be registered.

 

The
Securities will be restricted securities under United States federal and applicable state securities laws. The Securities will
be restricted securities unless and until the Securities are registered. Restricted securities may not be transferred, sold or
otherwise disposed of in the United States, except as permitted under United States federal and state securities laws, pursuant
to registration or an exemption therefrom. You should be prepared to hold the Securities for an indefinite period.

 

The
Securities may not be sold unless, at the time of such intended sale, there is a current registration statement covering the resale
of the securities or there exists an exemption from registration under the Securities Act, and such securities have been registered,
qualified, or deemed to be exempt under applicable securities or “blue sky” laws in the state of residence of the
seller or in the state where sales are being affected.

 

If
there is not an effective registration statement covering the resale of the Securities, you will be precluded from disposing of
such shares unless such shares may become eligible to be disposed of under the exemptions provided by Rule 144 under the Securities
Act without restriction. If the Securities are not registered for resale under the Securities Act, or exempt therefrom, and registered
or qualified under applicable securities or “blue sky” laws, or deemed exempt therefrom, the value of the Securities
will be greatly reduced.

 

Insufficient
Capital

 

There
can be no assurance or guarantee that the Company will raise sufficient capital, through this transaction or otherwise, to meet
the Company’s business objectives or fund its operations. The audited financial statements of the Company include a going
concern qualification and the Company has significant liquidity issues, including that described in the SEC Filings. There can
be no assurance that other obligations that are necessary for the Company will not be incurred or that the budgeted expenditures
will not be subject to any material increase.

 

*****

 

    	 

    	 

    

 

EXHIBIT
I

 

Form
of Note

 

    	 

    	 

    

 

EXHIBIT
II

 

Board
Resolutions

 

[provided separately]

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