Document:

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                                  Exhibit 10.22

                            STOCK PURCHASE AGREEMENT

                                 BY AND BETWEEN

        RANDY PAUL DEROCHE, SR., AS TRUSTEE FOR THE DEROCHE FAMILY TRUST,
      RANDY PAUL DEROCHE, SR., MICHAEL ANTHONY DEROCHE, DARREN J. DEROCHE,
     CHRISTOPHER J. DUBOIS, HANSEN NELTON, JR., TIMOTHY P. DEROCHE, WAYNE A.
    BASCLE, TIMOTHY J. LEDET, STEVEN A. LABAT, BENJAMIN D. DEROCHE AND JOSEPH
                     F. RAMIREZ, AND DARLENE DEROCHE RAMIREZ

                                 SHAREHOLDERS OF
                           PREFERRED INDUSTRIES, INC.

                                       AND

                            T-3 ENERGY SERVICES, INC.

                              DATED: MARCH 1, 2000

                                     EX-229
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                                TABLE OF CONTENTS

                                                                            PAGE
STOCK PURCHASE AGREEMENT......................................................1
RECITALS:.....................................................................1
AGREEMENT:....................................................................1
1.  AGREEMENT TO SELL AND AGREEMENT TO PURCHASE...............................2
         1.1.  PURCHASE OF SHARES FROM SHAREHOLDERS...........................2
         1.2.  MERGER.........................................................2
         1.3.  FURTHER ASSURANCES.............................................2
         1.4.  CLOSING........................................................3
2.  CONSIDERATION TO BE PAID BY BUYER.........................................3
         2.1.  PURCHASE PRICE FOR SHARES......................................3
         2.2.  PAYMENT OF PURCHASE PRICE......................................3
         2.3.  PURCHASE PRICE ADJUSTMENT......................................5
3.  REPRESENTATIONS AND WARRANTIES OF SELLERS.................................7
         3.1.  ORGANIZATION AND GOOD STANDING.................................7
         3.2.  AUTHORIZATION OF AGREEMENT.....................................7
         3.3.  OWNERSHIP OF SHARES............................................8
         3.4.  CAPITALIZATION.................................................8
         3.5.  FINANCIAL CONDITION............................................8
         3.6.  PROPERTY OF THE COMPANY........................................9
         3.7.  AGREEMENT NOT IN BREACH OF OTHER INSTRUMENTS..................12
         3.8.  EMPLOYMENT AGREEMENTS; EMPLOYEE BENEFITS......................13
         3.9.  LABOR AND EMPLOYMENT MATTERS..................................16
         3.10.  LITIGATION...................................................18
         3.11.  CONTRACTS....................................................18
         3.12.  REGULATORY APPROVALS.........................................20
         3.13.  COMPLIANCE WITH LAW..........................................20
         3.14.  INDEBTEDNESS FROM EMPLOYEES..................................20
         3.15.  ACCOUNTS RECEIVABLE..........................................20
         3.16.  INSURANCE....................................................21
         3.17.  POWERS OF ATTORNEY AND SURETYSHIPS...........................21
         3.18.  NO UNDISCLOSED LIABILITIES...................................22
         3.19.  ENVIRONMENTAL MATTERS........................................22
         3.20.  CONFLICT OF INTEREST.........................................23
         3.21.  TAXES........................................................23
         3.22.  LIENS........................................................29
         3.23.  OTHER INFORMATION............................................29
         3.24.  NO OTHER REPRESENTATIONS.....................................30
         3.25.  NO KNOWN BREACHES............................................30
4.  REPRESENTATIONS AND WARRANTIES OF BUYER..................................30
         4.1.  ORGANIZATION..................................................30
         4.2.  CORPORATE AUTHORITY...........................................30
         4.3.  AGREEMENT NOT IN BREACH OF OTHER INSTRUMENTS..................30
         4.4.  INVESTMENT INTENT.............................................31
         4.5.  REGULATORY AND OTHER APPROVALS................................31
         4.6.  NO KNOWN BREACHES.............................................31

                                     EX-230
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         4.7.  OTHER INFORMATION.............................................31
         4.8.  NO OTHER REPRESENTATIONS......................................32
5.  CERTAIN UNDERSTANDINGS AND AGREEMENTS OF THE PARTIES.....................32
         5.1.  COOPERATION IN LITIGATION.....................................32
         5.2.  TAX MATTERS...................................................32
         5.3.  EMPLOYMENT AND CONFIDENTIALITY AGREEMENTS.....................34
         5.4.  MERGER........................................................34
6.  INDEMNIFICATION..........................................................35
         6.1.  INDEMNIFICATION BY SELLERS....................................35
         6.2.  INDEMNIFICATION BY BUYER......................................37
         6.3.  CLAIMS FOR INDEMNIFICATION....................................38
         6.4.  DEFENSE BY INDEMNIFYING PARTY.................................38
         6.5.  MANNER OF INDEMNIFICATION.....................................39
         6.6.  LIMITATIONS ON INDEMNIFICATION................................39
         6.7.  SOLE BASIS FOR RECOVERY.......................................40
         6.8.  JOINT AND SEVERAL LIABILITY...................................41
7.  DOCUMENTS TO BE DELIVERED AT CLOSING.....................................41
         7.1.  CLOSING DOCUMENTS DELIVERED BY SELLERS........................41
         7.2.  CLOSING DOCUMENTS DELIVERED BY BUYER..........................42
8.  RELEASE..................................................................42
9.  MISCELLANEOUS............................................................43
         9.1.  NOTICES.......................................................43
         9.2.  ASSIGNABILITY AND PARTIES IN INTEREST.........................45
         9.3.  GOVERNING LAW.................................................45
         9.4.  COUNTERPARTS..................................................45
         9.5.  INDEMNIFICATION FOR BROKERAGE.................................45
         9.6.  PUBLICITY.....................................................46
         9.7.  COMPLETE AGREEMENT............................................46
         9.8.  INTERPRETATION................................................46
         9.9.  SEVERABILITY..................................................46
         9.10.  KNOWLEDGE:  DUE DILIGENCE INVESTIGATION......................47
         9.11.  EXPENSES OF TRANSACTIONS.....................................47
         9.12.  LIMIT ON INTEREST............................................47
         9.13.  SUBMISSION TO JURISDICTION...................................47
         9.14.  ARBITRATION..................................................47
         9.15.  WAIVER OF PUNITIVE DAMAGES...................................48

                                     EX-231
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EXHIBITS
EXHIBIT A  ESCROW AGREEMENT
EXHIBIT 2.3.1  FORM OF CLOSING BALANCE SHEET
EXHIBIT 5.3.1.  EMPLOYMENT AGREEMENT
EXHIBIT 5.3.2.  CONFIDENTIALITY AGREEMENT
SCHEDULES
SCHEDULE 2.2.2.  SELLERS' WIRE TRANSFER INSTRUCTIONS
SCHEDULE 3.1.  LOUISIANA PARISHES IN WHICH THE COMPANY DOES BUSINESS
SCHEDULE 3.5.1.  FINANCIAL STATEMENTS
SCHEDULE 3.5.2.  ASSETS TRANSFERRED OTHER THAN IN THE ORDINARY COURSE OF
                 BUSINESS
SCHEDULE 3.6.1.  REAL PROPERTY
SCHEDULE 3.6.2.  INVENTORY
SCHEDULE 3.6.3.  TANGIBLE PERSONAL PROPERTY
SCHEDULE 3.6.4.  INTANGIBLE PERSONAL PROPERTY
SCHEDULE 3.6.5.  SUBSIDIARIES
SCHEDULE 3.7.  CONSENTS
SCHEDULE 3.8.1  LABOR AND EMPLOYMENT MATTERS
SCHEDULE 3.8.2.  EMPLOYEE BANEFIT PLANS
SCHEDULE 3.9.1.  COLLECTIVE BARGAINING
SCHEDULE 3.9.2.  LABOR DISPUTES
SCHEDULE 3.10.  LITIGATION
SCHEDULE 3.11.  CONTRACTS
SCHEDULE 3.14.  EMPLOYEE INDEBTEDNESS
SCHEDULE 3.15.  ACCOUNTS RECEIVABLE
SCHEDULE 3.16.  INSURANCE
SCHEDULE 3.20.  CONFLICTS
SCHEDULE 3.21.2.  TAXABLE YEARS/EXAMINATIONS
SCHEDULE 3.21.3.  TAX RETURNS, ETC.
SCHEDULE 3.21.3.7.  TAX AFFILIATES
SCHEDULE 3.21.3.22.  TAX RETURNS WITHIN 60 DAYS
SCHEDULE 3.21.3.23.  TAX JURISDICTIONS
SCHEDULE 3.22.  DESCRIPTION OF COMPANY INDEBTEDNESS GUARANTEED BY SELLERS;
                LIENS ON ASSETS
SCHEDULE 5.3.2.  LIST OF EMPLOYEES/SHAREHOLDERS THAT WILL EXECUTE
                 CONFIDENTIALITY AGREEMENT
SCHEDULE 6.1.8.  ENVIRONMENTAL MATTERS
SCHEDULE 9.5.  BROKERAGE

                                     EX-232
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                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered
into as of this 1st day of March, 2000 by and among RANDY PAUL DEROCHE, SR., AS
TRUSTEE FOR THE DEROCHE FAMILY TRUST, RANDY PAUL DEROCHE, SR., MICHAEL ANTHONY
DEROCHE, DARREN J. DEROCHE, CHRISTOPHER J. DUBOIS, HANSEN NELTON, JR., TIMOTHY
P. DEROCHE, WAYNE A. BASCLE, TIMOTHY J. LEDET, STEVEN A. LABAT, BENJAMIN D.
DEROCHE, JOSEPH F. RAMIREZ AND DARLENE DEROCHE RAMIREZ (collectively, the
"Sellers"), being all the shareholders of PREFERRED INDUSTRIES, INC., a
Louisiana corporation (the "Company"), and T-3 ENERGY SERVICES, INC., a Delaware
corporation ("Buyer").

RECITALS:

         1.   Sellers own all outstanding shares of the common stock, no par
value (the "Shares"), of the Company.

         2.   The Company is engaged in the business of manufacture,
remanufacture, and repair of flow control equipment and the manufacture,
remanufacture, and repair of drilling equipment used in the oil and gas
exploration, refining, production and distribution industries.

         3.   Sellers desire to sell to Buyer the Purchased Shares (as defined
below), and Buyer desires to acquire the Purchased Shares on the terms and
conditions hereinafter set forth.

         4.   Immediately after Buyer's acquisition of the Purchased Shares (as
hereinafter defined) pursuant to this Agreement, Buyer and Randy Paul Deroche,
Sr. shall cause Preferred Industries Acquisition Corp., which is a wholly owned
subsidiary of the Buyer, to be merged into the Company. In consideration of the
merger, Randy Paul Deroche, Sr. shall be given common stock in the Buyer in
exchange for that portion of the Shares owned by Randy Paul Deroche, Sr. not
included in the Purchased Shares.

AGREEMENT:

         NOW, THEREFORE, in consideration of the premises and the mutual
promises contained herein, the parties hereto covenant and agree as follows:

                                     EX-233
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1.   AGREEMENT TO SELL AND AGREEMENT TO PURCHASE.

     1.1.   PURCHASE OF SHARES FROM SHAREHOLDERS.

            On the terms and subject to the conditions set forth herein, Sellers
     hereby sell, transfer, convey, assign and deliver to Buyer, free and clear
     of all liens, pledges, encumbrances and claims whatsoever, and Buyer hereby
     purchases, acquires and accepts from Sellers all the Purchased Shares.
     Sellers shall deliver to Buyer certificates representing the Purchased
     Shares, duly endorsed for transfer at the Closing (as defined in Section
     1.4 hereof). The Purchased Shares are identified as follows: (i) for all
     Sellers except Randy Paul Deroche, Sr., the Purchased Shares include 100%
     of the common stock in the Company owned by said Sellers and (ii) for Randy
     Paul Deroche, Sr., the Purchased Shares include all common stock in the
     Company, less 0.92222 shares. The excluded 0.92222 shares are herein called
     the "Non-Purchased Shares."

     1.2.   MERGER.

            Following Buyer's acquisition of the Purchased Shares, Buyer ad
     Randy Paul Deroche, Sr. shall cause a merger of Preferred Industries
     Acquisition Corp., which is a wholly owned subsidiary of the Buyer into the
     Company. The merger shall be treated as a Section 351 reorganization under
     the Internal Revenue Code. As part of the merger, Randy Deroche shall
     transfer to Buyer the Non-Purchased Shares, and Buyer shall issue and
     transfer to Randy Paul Deroche, Sr. common stock of the Buyer having a
     value of $200,000.00. The parties agree and acknowledge that the value of
     the value of the Non-Purchased Shares in $200,000.00.

     1.3.   FURTHER ASSURANCES.

            From time to time after the Closing, Sellers and Buyer, and each of
     their respective affiliates, will execute and deliver to the other party
     such instruments of sale, transfer, conveyance, assignment and delivery,
     consents, assurances, powers of attorney and other instruments as may be
     reasonably requested by counsel for Buyer or Sellers in order to vest in
     Buyer all right, title and interest of Sellers in and to the Shares and
     otherwise in order to carry out the purpose and intent of this Agreement.

                                     EX-234
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     1.4.   CLOSING.

            The closing (the "Closing") of the transactions herein contemplated
     shall take place at the offices of Liskow & Lewis located at One Shell
     Square, 701 Poydras Street, New Orleans, Louisiana 70139 and be effective
     as of 10:00 a.m., local time, on the date hereof (the "Closing Date"). All
     actions taken and all documents delivered at the Closing shall be deemed to
     have occurred simultaneously.

2.   CONSIDERATION TO BE PAID BY BUYER.

     2.1.   PURCHASE PRICE FOR SHARES.

            The purchase price for the Purchased Shares shall be an amount
     ("Purchase Price") equal to $17,800,000.00 plus or less, as the case may
     be, any Adjustment Amounts (as defined in Section 2.3.).

     2.2.   PAYMENT OF PURCHASE PRICE.

            2.2.1.  ASSUMPTION OF DEBT

                    A portion of the Purchase Price will consist of Buyer's
            assumption at Closing of the Company's Total Debt. The term "Total
            Debt" is herein defined as the amount equal to the Company's
            short-term debt, current portion of long-term debt, long-term debt
            and shareholders loans. To the extent the Company has capital lease
            or sale lease back obligations, such obligations will be treated as
            a component of Total Debt assumed by Buyer for the purposes of
            calculating the cash portion of the Purchase Price. The Total Debt
            assumed by Buyer shall be treated as a dollar-for-dollar credit to
            the Purchase Price.

            2.2.2.  CASH TO SELLERS

                    At the Closing, Buyer shall pay in immediately available
            funds by wire transfer (pursuant to the instructions set forth on
            Schedule 2.2.2.) to Sellers the cash portion of the Purchase Price,
            less the Escrow Amount (as defined in Section 2.2.3.), to the
            separate accounts of Sellers in the following percentages:

                   Randy Paul Deroche, Sr.,        32.530120%
                   as Trustee for the Deroche
                   Family Trust

                   Randy Paul Deroche, Sr.         24.096386%

                   Michael Anthony                  6.024096%
                   Deroche

                                     EX-235
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                   Darren J. Deroche                6.024096%

                   Christopher J. Dubois            6.024096%

                   Hansen Nelton, Jr.               1.204819%

                   Timothy P. Deroche               6.024096%

                   Wayne A. Bascle                  6.024096%

                   Timothy J. Ledet                 1.204819%

                   Steven A. Labat                  1.204819%

                   Benjamin D. Deroche              6.024096%

                   Joseph F. Ramirez and Darlene    3.614458%
                   Deroche Ramirez

            2.2.3.  RETENTION OF ESCROW.

                    Buyer shall place in an interest bearing escrow account with
            Hibernia National Bank $1,780,000.00 of the Purchase Price (the
            "Escrow Amount"), which shall be subject to Section 6. and the
            Adjustment Amounts (as defined in Section 2.3.4.) Distribution of
            the Escrow Amount shall be pursuant to an Escrow Agreement in the
            form of Exhibit A. The Escrow Amount, after taking into account any
            claims by Buyer against Sellers pursuant to Section 6. of this
            Agreement and any Adjustment Amounts payable to Buyer to the extent
            not paid by Sellers, shall be paid to Sellers with interest as
            follows:

                                     EX-236
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                                    2.2.3.1. On September 1, 2000, Buyer shall
                            pay to Sellers, in the percentages set forth in
                            Section 2.2.2., $890,000.00, less any amounts
                            claimed pursuant to Section 6. by Buyer up to
                            September 1, 2000 and any Adjustment Amounts payable
                            to Buyer to the extent not paid by Sellers,
                            including interest accrued on any such amounts.

                                    2.2.3.2. On April 30, 2001 or seven (7) days
                            after Buyers receipt of the Company's audited
                            financial statements for calendar year 2000,
                            whichever is later, (the "Release Date") Buyer shall
                            pay to Sellers, in the percentages set forth in
                            Section 2.2.2., any remaining portion of the Escrow
                            Amount, less any amounts claimed pursuant to Section
                            6. by Buyer up to the Release Date and any
                            Adjustment Amounts payable to Buyer to the extent
                            not paid by Sellers, including interest accrued on
                            any such amounts.

     2.3.   PURCHASE PRICE ADJUSTMENTS.

                    2.3.1. Seller shall prepare or cause to be prepared and
            delivered to Buyer at the Closing a preliminary combined balance
            sheet of the Company as of February 29, 2000, prepared in accordance
            with generally accepted accounting principles consistently applied
            ("GAAP") on a basis consistent with the Financial Statements as such
            term is used in Section 3.5.1. of this Agreement (the "Closing
            Balance Sheet"), which Closing Balance Sheet must be reasonably
            acceptable to Buyer. Upon request, the Sellers shall provide to the
            Buyer and its, representatives, accountants, and advisors with
            access to copies of all work papers and other relevant documents to
            verify the entries contained in the Closing Balance Sheet. The
            Closing Balance Sheet must include a calculation of (a) Net Working
            Capital (defined as the Company's current assets, excluding obsolete
            and slow moving items of Inventory, minus (i) proceeds from the
            Company's sale of assets listed on its June 30, 1999 balance sheet
            (other than items of Inventory sold in the ordinary course of
            business) and (ii) the Company's current liabilities, excluding
            short-term debt and the current portion of long-term debt) in the
            amount of $2,424,000.00 and (b) Total Debt (as defined in Section
            2.2.1. above). The parties agree that for the purposes of
            calculating Net Working Capital, the maximum allowance for a step-up
            in Inventory value is $350,000.00, and that there will be no further
            adjustments to Inventory except for variances in count resulting
            from a physical count of the Inventory at Closing. The form of
            Closing Balance Sheet, prepared by Arthur Andersen LLP, for use by
            Sellers is attached to this Agreement as Exhibit 2.3.1.

                    2.3.2. In the event the preliminary determination of Net
            Working Capital as set forth on the Closing Balance Sheet is greater
            (applying GAAP) than $2,424,000.00, the amount in excess will be
            paid at Closing by wire transfer by Buyer to Sellers in the
            percentages set forth in Section 2.2.2. On the other hand, if the
            preliminary determination of Net Working Capital as set

                                     EX-237
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            forth in the Closing Balance Sheet is less (applying GAAP) than
            $2,424,000.00, then the Purchase Price shall be reduced by the Net
            Working Capital excess amount.

                    2.3.3. On or before 60 days after the Closing Date, the
            Company shall cause the accounting firm of Arthur Andersen LLP to
            audit the Closing Balance Sheet in accordance with GAAP, and deliver
            the audited Closing Balance Sheet (the "Audited Closing Balance
            Sheet") to Buyer and Sellers in order to determine the "Adjustment
            Amounts" (as defined below in Section 2.3.4.). Upon reasonable
            notice and during reasonable business hours, Buyer agrees that the
            Company shall allow Sellers and Sellers' Accountant access to the
            persons involved in the preparation of the Audited Closing Balance
            Sheet and to all of their work-papers so as to permit Sellers and
            Sellers' Accountant to make copies of such work-papers supporting
            the amounts included in the Audited Closing Balance Sheet and to
            reasonably review the accounting procedures, tests, methods and
            approaches utilized by Arthur Andersen LLP.

                    2.3.4. On or before the 55th day following delivery of the
            Audited Closing Balance Sheet pursuant to Section 2.3.3., Sellers
            shall notify Buyer in writing of any objections to the Audited
            Closing Balance Sheet (and the determination of the Adjustment
            Amounts) as not complying with the requirements of Section 2.3.,
            specifying in reasonable detail any such objections (a "Dispute
            Notice"). If (i) Sellers do not deliver a Dispute Notice within the
            time period specified above for delivery of a Dispute Notice (the
            "Notice Period"), or (ii) prior to the expiration of the Notice
            Period, Sellers indicate in writing to Buyer that Sellers relinquish
            their right to object to the Audited Closing Balance Sheet, or (iii)
            Buyer and Sellers agree on the resolution of all such objections or
            changes at any time subsequent to the expiration of the Notice
            Period, the Audited Closing Balance Sheet, with any such changes as
            are agreed upon, shall be final and binding on the parties hereto.
            If Sellers and Buyer are unable to resolve the matters addressed in
            any Dispute Notice, each party shall within fourteen (14) business
            days after the delivery of such Dispute Notice, summarize its
            position with regard to such dispute in a written document of ten
            pages or less and submit such summaries to the Houston, Texas office
            of, PriceWaterhouseCoopers, LLP, or such other party as the parties
            may mutually select (the "Accounting Arbitrator"), together with the
            Dispute Notice and any other documentation either party may desire
            to submit. The Accounting Arbitrator shall render a decision
            regarding such dispute in accordance with this Agreement, based on
            the materials described above and based upon the books and records
            of the Company within twenty business days of the submission of such
            materials. Any decision rendered by the Accounting Arbitrator
            pursuant hereto shall be final and binding between the parties for
            the purpose of determining the Adjustment Amounts under this Section
            2.3. Within ten days after the final determination of the Audited
            Closing Balance Sheet pursuant to this Section 2.3.4., the following
            adjustments to the Purchase Price shall occur: (i) to the extent
            that the Net

                                     EX-238
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            Working Capital balance on the Audited Closing Balance Sheet
            (applying GAAP) is different from the Net Working Capital balance
            set forth on the Closing Balance Sheet, then (a) any excess amount
            shall be paid by Buyer to Sellers or (b) any shortfall or deficiency
            amount shall be paid by Sellers to Buyer; and (ii) to the extent
            that the Total Debt amount set forth on the Audited Closing Balance
            Sheet (applying GAAP) is different from the Total Debt amount set
            forth on the Closing Balance Sheet, then (x) the amount of any
            decrease shall be paid by Buyer to Sellers or (y) the amount of any
            increase shall be paid by Sellers to Buyer. Notwithstanding the
            foregoing, no adjustment shall occur on account of a change in Total
            Debt to the extent such change has been compensated through the Net
            Working Capital adjustment. Payments under this Section 2.3.4. shall
            be in immediately available funds by wire transfer, and all such
            payments to Sellers shall be in the percentages set forth in Section
            2.2.2. above. If Sellers fail to make any payment to Buyer required
            by this Section 2.3.4., then Buyer is authorized but not required to
            apply any or all of the Escrow Amount to such payment. The term
            "Adjustment Amounts" as used in this Section 2.3. shall mean any
            payments, as adjusted, and/or reductions to the Purchase Price made
            by Buyer to Sellers or by Sellers to Buyer pursuant to Sections
            2.3.2. and 2.3.4. of this Agreement.

3.   REPRESENTATIONS AND WARRANTIES OF SELLERS.

     Sellers jointly and severally, and insolido, except as provided in Section
6.8. below, represent and warrant to Buyer that:

     3.1.   ORGANIZATION AND GOOD STANDING.

            Each of the Company and the Subsidiaries (as defined in Section
     3.6.5) is duly organized, validly existing and in good standing under the
     laws of the jurisdiction in which it was formed, with full power to carry
     on its business as it is now and has since its organization been conducted,
     and to own, lease or operate its assets. Either the Company or one of the
     Subsidiaries is duly authorized to do business and is in good standing in
     such other jurisdictions in which the failure to so qualify could have a
     material and adverse effect on the results of operations, properties,
     assets, condition (financial or otherwise), or prospects of the Company (a
     "Material Adverse Effect"). Schedule 3.1. is a listing of the Louisiana
     parishes in which the Company does business and the Louisiana parishes
     adjacent to offshore waters in which the Company does business.

     3.2.   AUTHORIZATION OF AGREEMENT.

            Sellers have all requisite power and authority to enter into this
     Agreement and to consummate the transactions contemplated hereby. This
     Agreement and all other agreements and instruments to be executed by
     Sellers or their affiliates in connection herewith have been duly executed
     and delivered by Sellers or their affiliates, have been effectively
     authorized by all necessary action, corporate or otherwise, and constitute
     legal, valid and binding obligations of Sellers or their affiliates, as the
     case may be.

                                     EX-239
<PAGE>

     3.3.   OWNERSHIP OF SHARES.

            The Shares are owned beneficially and of record by Sellers, and are
     being transferred to Buyer free and clear of all liens, mortgages, charges,
     option rights, pledges, security interests, restrictions, prior
     assignments, encumbrances and claims of any kind or nature whatsoever. No
     Shares are subject to any restriction with respect to their transferability
     (other than restrictions on transfer under applicable Federal and state
     securities laws).

     3.4.   CAPITALIZATION.

            The authorized capital stock of the Company consists solely of 1,000
     shares of common stock, no par value, of which 83 are issued and
     outstanding and which are owned by Sellers in the percentages set forth in
     Section 2.2.2. All of the Shares have been duly authorized, validly issued
     (free of all past, present and future preemptive rights), and are fully
     paid and non-assessable. There are no outstanding or authorized options,
     warrants, subscriptions, calls, puts, conversion or other rights,
     contracts, agreements, commitments or understandings of any kind obligating
     the Company to issue, sell, purchase, return, redeem or pay any
     distribution or dividend with respect to any shares of capital stock of the
     Company or any other securities convertible into, exchangeable for or
     evidencing the right to subscribe for any shares of capital stock of or
     other ownership interest in the Company.

     3.5.   FINANCIAL CONDITION.

            3.5.1.

                    Financial Statements. Schedule 3.5.1. sets forth the
            following financial information of the Company: the balance sheet as
            of June 30, 1999, December 31, 1998, December 31, 1997, and December
            31, 1996, and the related statements of income for the six months
            ended June 30, 1999 and each of the three years in the period ended
            December 31, 1998 (collectively, the "Financial Statements"). The
            Financial Statements for any periods in 1998 and 1999 were prepared,
            after adjustments, in accordance with generally accepted accounting
            principles, applied on a consistent basis.

                                     EX-240
<PAGE>

            3.5.2.

                    Absence of Certain Changes. Since June 30, 1999 (the
            "Balance Sheet Date") there has not been (i) any damage, destruction
            or loss, whether or not covered by insurance, which, if not covered
            by insurance, could be a Material Adverse Effect; (ii) any sale or
            transfer of any of the assets of the Company except (a) sales in the
            ordinary course of the business of inventory or immaterial amounts
            of other tangible personal property and (b) for the transfers listed
            on Schedule 3.5.2.; (iii) any increase in, or commitment to
            increase, the compensation payable or to become payable to any of
            the Company's employees or any bonus payment (other than as included
            as an accrued liability on the Company's June 30, 1999 Financial
            Statement) or similar arrangement made to or with any of the
            Company's employees other than routine increases made in the
            ordinary course of business not exceeding the greater of five
            percent per annum or Two Thousand Dollars ($2,000) per annum for any
            of them individually; (iv) any adoption of a plan or agreement or
            amendment to any plan or agreement providing any new or additional
            fringe benefits; or (v) any material alteration in the manner of
            keeping the Company's books, accounts or records, or in the
            accounting practices therein reflected. Since the Balance Sheet
            Date, the Company has not (except with the prior written consent of
            Buyer): (a) entered into any material transaction not in the
            ordinary course of business; or (b) materially amended, modified, or
            terminated any material Contract (as defined in Section 3.11.1.)
            other than in the ordinary course of its business.

     3.6.   PROPERTY OF THE COMPANY.

            3.6.1.

                    Real Property. There is listed in Schedule 3.6.1. a
            description of each parcel of real or immovable property owned by or
            leased to the Company, or owned by or leased to Sellers for use by
            the Company. Except as indicated in Schedule 3.6.1.:

                            3.6.1.1.

                                    Each of the leases described in Schedule
                            3.6.1. is a valid and binding obligation of the
                            Company or Sellers, as the case may be, and Sellers
                            do not have any knowledge that any of said leases is
                            not a valid and binding obligation of each of the
                            other parties thereto;

                                     EX-241
<PAGE>

                            3.6.1.2.

                                    the Company and Sellers are not, and Sellers
                            do not have any knowledge that any other party to
                            any such lease is, in default with respect to any
                            material term or condition thereof, and Sellers do
                            not have any knowledge that any event has occurred
                            which through the passage of time or the giving of
                            notice, or both, would constitute a default
                            thereunder or would cause the acceleration of any
                            obligation of any party thereto or the creation of a
                            lien or encumbrance upon any asset of the Company;

                            3.6.1.3.

                                    All of the buildings, fixtures and other
                            improvements located on the real or immovable
                            property described in Schedule 3.6.1. are in good
                            operating condition and repair, and the Company or
                            Sellers, as the case may be, holds valid and
                            effective certificates of occupancy, underwriters'
                            certificates relating to electrical work, building,
                            safety, fire and health approvals and all other
                            permits and licenses required by applicable law
                            relating to the operation of such real properties
                            and leaseholds. Neither the Company nor Sellers have
                            received notice that the Company's operations at the
                            real or immovable property listed in Schedule 3.6.1.
                            as presently conducted is in violation of any
                            applicable building code, zoning ordinance or other
                            law or regulation;

                            3.6.1.4.

                                    Neither the Company nor Sellers, as the case
                            may be, have experienced during the two years
                            preceding the date hereof any material interruption
                            in the delivery of adequate quantities of any
                            utilities (including, without limitation,
                            electricity, natural gas, potable water, water for
                            cooling or similar purposes and fuel oil) or other
                            public services (including, without limitation,
                            sanitary and industrial sewer service) required by
                            the Company during such period.

            3.6.2.

                    Inventory. There is listed in Schedule 3.6.2. a description
            of all inventories of (i) valves, chokes, actuators, manifolds,
            drilling spools, flanges, tees, blowout preventers, and
            miscellaneous pressure control and drilling products; (ii) raw
            material, work in progress, finished goods, containers, tote bins,
            and other packaging material, spare parts, maintenance supplies; and
            (iii) other similar items of the Company (the "Inventory"). Also
            separately listed on Schedule 3.6.2 is a description of all items of
            Inventory that are obsolete and/or slow moving for sale or rental
            purposes. Except for the Inventory which is carried as second
            quality or slow moving material in the Company's June 30, 1999
            Financial Statement, the Inventory of the Company is good and
            merchantable and is salable in the ordinary course of business.

                                     EX-242
<PAGE>

            The Inventory is carried on the books of the Company at the lower of
            cost or market.

            3.6.3.

                    Other Tangible Personal Property. There is listed in
            Schedule 3.6.3.: (i) a description and the location of each item of
            tangible personal property (other than Inventory) owned by the
            Company or in the possession of the Company having on the date
            hereof a depreciated book value per unit in excess of Five Thousand
            Dollars ($5,000); (ii) an identification of the owner of, and any
            agreement relating to the use of, each item of tangible personal
            property under leases or other similar agreements which provide for
            rental payments at a rate in excess of Two Hundred Fifty Dollars
            ($250) per month; and (iii) an identification of the owner of, and
            any agreement relating to the use of, each motor vehicle not owned
            by the Company, the rights to which are to be transferred to Buyer
            pursuant hereto;

            3.6.4.

                    Intangible Personal Property. There is listed in Schedule
            3.6.4.: an identification of all (i) foreign and United States
            Federal or state patents, patent applications, invention
            disclosures, copyrights, copyright registrations, trademarks,
            trademark registrations, service marks, service mark registrations,
            trade names, trade name registrations and applications for any of
            the foregoing, owned or used by the Company; (ii) common law claims
            to trademarks, service marks and tradenames; (iii) claims of
            copyright that exist although no registrations have been issued with
            respect thereto; and (iv) fictitious or assumed business name
            filings with any state or local governmental authority ("intangible
            personal property"). Schedule 3.6.4. also sets forth a true and
            complete list of all licenses or similar agreements or arrangements
            to which the Company is a party either as licensee or licensor for
            each such item of intangible personal property. Except as indicated
            in Schedule 3.6.4.:

                            3.6.4.1.

                                    There have not been any regulatory actions
                            or other judicial or adversary proceedings involving
                            the Company concerning any of such items of
                            intangible personal property, nor is any such action
                            or proceeding threatened;

                                     EX-243
<PAGE>

                            3.6.4.2.

                                    the Company has the right and authority to
                            use said items of intangible personal property in
                            connection with the conduct of its business in the
                            manner presently conducted and, subject to the
                            receipt of those consents listed on Schedule 3.7.,
                            to convey such right and authority to Buyer, and
                            such use does not conflict with, infringe upon or
                            violate any patent, trademark, servicemark, trade
                            name, registration or similar rights of any other
                            person, firm or corporation;

                            3.6.4.3.

                                    There are no outstanding, or threatened,
                            disputes or disagreements with respect to any
                            licenses or similar agreements or arrangements
                            described in Schedule 3.6.4.; and

                            3.6.4.4.

                                    The conduct of its business by the Company
                            does not conflict with any patents, trademarks,
                            trade secrets, trade names or similar rights of
                            others.

     3.6.5. SUBSIDIARIES

                    Set forth on Schedule 3.6.5 is a list of all entities in
            which the Company holds a 5% or greater interest (the
            "Subsidiaries") and the percentage ownership of the Company in each
            such entity. There are no options, warrants, convertible debt or
            other similar instruments entitling anyone to acquire any capital
            stock or other equity interest of any of the Subsidiaries.

     3.7.   AGREEMENT NOT IN BREACH OF OTHER INSTRUMENTS.

            The execution and delivery of this Agreement by Sellers and the
     consummation of the transactions contemplated hereby will not result in a
     breach of any of the terms and provisions of, or constitute a default
     under, or conflict with: (i) any Contract or any other material agreement,
     indenture or other instrument to which Sellers or the Company is a party or
     by which any of them is bound, subject to the receipt of those consents
     listed on Schedule 3.7. which have been obtained and provided to Buyer,
     (ii) the Articles of Incorporation and Bylaws of the Company and each of
     the Subsidiaries, (iii) any judgment, decree, order or award of any court,
     governmental body or arbitrator, or (iv) any law, rule or regulation
     applicable to Sellers or the Company.

     3.8.   EMPLOYMENT AGREEMENTS; AND EMPLOYEE BENEFITS.

                                     EX-244
<PAGE>

            3.8.1.

                    Except as set forth on Schedule 3.8.1., there are no
            employment, consulting, severance pay, continuation pay, termination
            pay or indemnification agreements or other similar agreements of any
            nature whatsoever (collectively, "Employment Agreements") between
            the Company or a Subsidiary, on the one hand, and any current or
            former stockholder, officer, director, employee, consultant, or
            agent of the Company or a Subsidiary, on the other hand, that are
            currently in effect. Except as set forth on Schedule 3.8.1. there
            are no Employment Agreements or any other similar agreements to
            which the Company or any of its Subsidiaries is a party under which
            the transactions contemplated by this Agreement (i) will require any
            payment by the Company, a Subsidiary or Buyer, or any consent or
            waiver from any stockholder, officer, director, employee, consultant
            or agent of the Company, a Subsidiary or Buyer, or (ii) will result
            in any change in the nature of any rights of any stockholder,
            officer, director, employee, consultant or agent of the Company or a
            Subsidiary under any such Employment Agreement or other similar
            agreement.

            3.8.2.

                    Schedule 3.8.2. sets forth Employee Benefit Plans of the
            Company and its Subsidiaries. The Company has made true and correct
            copies of all governing instruments and related agreements
            pertaining to such benefit plans available to Buyer.

            3.8.3.

                    Neither the Company, any Subsidiary nor any of their ERISA
            Affiliates sponsors or has ever sponsored, maintained, contributed
            to, or incurred an obligation to contribute to, any Employee Pension
            Benefit Plan.

            3.8.4.

                    No individual shall accrue or receive additional benefits,
            service or accelerated rights to payments of benefits under any
            Employee Benefit Plan, including the right to receive any parachute
            payment, as defined in Section 280G of the Code, or become entitled
            to severance, termination allowance or similar payments as a direct
            result of the transactions contemplated by this Agreement.

            3.8.5.

                    No Employee Benefit Plan has participated in, engaged in or
            been a party to any non-exempt Prohibited Transaction, and neither
            the Company, a Subsidiary nor any of their ERISA Affiliates has had
            asserted against it any claim for taxes under Chapter 43 of Subtitle
            A of the Code and Sections 5,000 of the Code , or for penalties
            under ERISA Section 502(c), (i) or (l), with respect to any Employee
            Benefit Plan nor, to the knowledge of the

                                     EX-245
<PAGE>

            Shareholders, is there a basis for any such claim. No officer,
            director or employee of the Company or a Subsidiary of the Company
            has committed a material breach of any responsibility or obligation
            imposed upon fiduciaries by Title I of ERISA with respect to any
            Employee Benefit Plan.

            3.8.6.

                    Other than routine claims for benefits, there is no claim
            pending or to the knowledge of the Company and Shareholders
            threatened, involving any Employee Benefit Plan by any Person
            against such plan or the Company, any Subsidiary or any ERISA
            Affiliate. There is no pending or to the knowledge of the Company
            and Shareholders threatened proceeding involving any Employee
            Benefit Plan before the IRS, the U.S. Department of Labor or any
            other governmental authority.

            3.8.7.

                    There is no violation of any reporting or disclosure
            requirement imposed by ERISA or the Code with respect to any
            Employee Benefit Plan.

            3.8.8.

                    Each Employee Benefit Plan has at all times prior hereto
            been maintained in all material respects, by its terms and in
            operation, in accordance with ERISA and the Code. The Company, each
            Subsidiary and their ERISA Affiliates have made full and timely
            payment of all amounts required to be contributed under the terms of
            each Employee Benefit Plan and applicable law or required to be paid
            as expenses under such Employee Benefit Plan, and the Company, each
            such Subsidiary and their ERISA Affiliates shall continue to do so
            through the Closing. Each Employer Benefit Plan intended to be
            qualified under Code Section 401(a) has received a determination
            letter to that effect from the Internal Revenue Service and no event
            has occurred and no amendment has been made that would adversely
            affect such qualified status.

            3.8.9.

                    With respect to any group health plans maintained by the
            Company, any Subsidiary or their ERISA Affiliates, whether or not
            for the benefit of the Company's or such Subsidiary's employees, the
            Company and its ERISA Affiliate have complied in all material
            respects with the provisions of Part 6 of Title I of ERISA and 4980B
            of the Code. Neither the Company nor any Subsidiary is obligated to
            provide health care benefits of any kind to its retired employees
            pursuant to any Employee Benefit Plan, including without limitation
            any group health plan, or pursuant to any agreement or
            understanding.

            3.8.10.

                    The Company has made available to the Buyer a copy of (i)
            the three (3) most recently filed Federal Form 5500 series and
            accountant's opinion, if applicable, for each Employee Benefit Plan
            and all applicable Internal Revenue Service determination letters.

                                     EX-246
<PAGE>

            3.8.11.

                    For purposes of this Section 3.8., the following definitions
            shall apply:

                            3.8.11.1.

                                    "Benefit Arrangement" means any material
                            benefit arrangement that is not an Employee Benefit
                            Plan, including, without limitation, (i) each
                            employment or consulting agreement, (ii) each
                            arrangement providing for insurance coverage or
                            workers' compensation benefits, (iii) each incentive
                            bonus or deferred bonus arrangement, (iv) each
                            arrangement providing termination allowance,
                            severance or similar benefits, (v) each equity
                            compensation plan, (vi) each deferred compensation
                            plan and (vii) each compensation policy and practice
                            maintained by the Company or any ERISA Affiliate
                            covering the employees, former employees, directors
                            and former directors of the Company, and the
                            beneficiaries of any of them.

                            3.8.11.2.

                                    "COBRA" means the Consolidated Omnibus
                            Budget Reconciliation Act of 1985, as amended, as
                            set forth in Section 4980B of the Code and Part 6 of
                            Title I of ERISA.

                                     EX-247
<PAGE>

                            3.8.11.3.

                                    "Code" means the Internal Revenue Code of
                            1986, as amended.

                            3.8.11.4.

                                    "Employee Benefit Plan" means any employee
                            benefit plan, as defined in Section 3(3) of ERISA,
                            that is sponsored or contributed to by the Company
                            or any ERISA Affiliate covering employees or former
                            employees of the Company.

                            3.8.11.5.

                                    "Employee Pension Benefit Plan" means any
                            employee pension benefit plan, as defined in Section
                            3(2) of ERISA, that is subject to Title IV of ERISA.

                            3.8.11.6.

                                    "ERISA" means the Employee Retirement Income
                            Security Act of 1974, as amended.

                            3.8.11.7.

                                    "ERISA Affiliate" of any person means any
                            other person that, together with such person as of
                            the relevant measuring date under ERISA, was or is
                            required to be treated as a single employer under
                            Section 414 of the Code.

                            3.8.11.8.

                                    "Prohibited Transaction" means a transaction
                            that is prohibited under Section 4975 of the Code or
                            Section 406 of ERISA and not exempt under Section
                            4975 of the Code or Section 408 of ERISA,
                            respectively.

     3.9.   LABOR AND EMPLOYMENT MATTERS.

            3.9.1.

                    Except as set forth on Schedule 3.9.1., no collective
            bargaining agreement exists that is binding on the Company or any
            Subsidiary and, except as described on Schedule 3.9.1., no petition
            has been filed or proceedings instituted by an employee or group of
            employees with any labor relations board seeking recognition of a
            bargaining representative. Schedule 3.9.1. describes any
            organizational effort currently being made or threatened by or on
            behalf of any labor union to organize any employees of the Company
            or any Subsidiary.

                                     EX-248
<PAGE>

            3.9.2.

                    Except as set forth on Schedule 3.9.2., (i) there is not
            now, and to the Shareholders' knowledge, never has been, any labor
            strike, dispute, slow down or stoppage pending or, to the
            Shareholders' knowledge, threatened, against or directly affecting
            the Company or any Subsidiary, (ii) no grievance or arbitration
            proceeding arising out of or under any collective bargaining
            agreement is pending, and no claims therefor exist; and (iii)
            neither the Company, any Subsidiary nor any Shareholder has received
            any notice or has any knowledge of any threatened labor or civil
            rights dispute, controversy or grievance or any other unfair labor
            practice proceeding or breach of contract claim or action with
            respect to claims of, or obligations to, any employee or group of
            employees of the Company or any Subsidiary.

            3.9.3.

                    If required under the Workers Adjustment and Retraining
            Notification Act or other applicable state law regulating plant
            closing or mass layoffs, the Company and its Subsidiaries have
            timely caused there to be filed or distributed, as appropriate, all
            required filings and notices with respect to employment losses
            occurring through the Closing Date.

            3.9.4.

                    The Company and its Subsidiaries have complied and are
            currently complying, in respect of all employees of the Company and
            its Subsidiaries with all applicable laws respecting employment and
            employment practices and the protection of the health and safety of
            employees, from whatever source such law may be derived, including,
            without limitation, statutes, ordinances, laws, rules, regulations,
            policies, standards, judicial or administrative precedents,
            judgments, orders, decrees, awards, citations, licenses, official
            interpretations and guidelines , except for such instances which are
            not, in the aggregate, material.

            3.9.5.

                    All individuals who are performing or have performed
            services for the Company, any Subsidiary and are or were classified
            by the Company or any Subsidiary as "independent contractors"
            qualify for such classification under Section 530 of the Revenue Act
            of 1978 or Section 1706 of the Tax Reform Act of 1986, as
            applicable, except for such instances which are not, in the
            aggregate, material.

                    3.9.6. The Company and its Subsidiaries have substantially
            complied and are currently complying with the Americans With
            Disabilities Act, 42 U.S.C.ss.12101, et seq., and all applicable
            state laws prohibiting discrimination against qualified individuals
            with disabilities and requiring access accommodations.

                                     EX-249
<PAGE>

     3.10.  LITIGATION.

            3.10.1.

                    Except for (i) claims listed in Schedule 3.10. and (ii)
            claims for the collection of accounts arising out of the sale or
            purchase of goods or services in the ordinary course of business
            involving less than $10,000 individually or $50,000 in the
            aggregate, there are no claims, disputes, actions, proceedings or
            investigations of any nature pending or, to the knowledge of
            Sellers, threatened against the Company, or any of the officers,
            partners, shareholders, affiliates or employees of the Company.

            3.10.2.

                    No claim, action, suit, investigation, or other proceeding
            is pending or threatened before any court or governmental agency
            which presents a risk of the restraint or prohibition of the
            transactions contemplated by this Agreement or the obtaining of
            indemnification or other relief in connection therewith.

     3.11.  CONTRACTS.

            3.11.1.

                    Schedule 3.11. sets forth a true and correct list of each
            contract to which the Company is a party, including but not limited
            to any and all master service contracts, or to which any Seller is a
            party and which relates to the business of the Company
            ("Contracts"), except:

                            3.11.1.1.

                                    Agreements for the purchase by the Company
                            of goods, materials or services in the ordinary
                            course of business involving less than $10,000 in
                            consideration in each such case;

                            3.11.1.2.

                                    Agreements for the sale, rental or service
                            by the Company of goods or services in the ordinary
                            course of business in which the payment to be
                            received pursuant to each such agreement is less
                            than $10,000 for each such non-listed agreement;

                            3.11.1.3.

                                    Agreements which are terminable at will by
                            the Company upon no more than 60 days notice without
                            penalty, default or liability and involving an
                            amount less than $10,000; and

                            3.11.1.4.

                                    Agreements continuing for a period of six
                            months or less involving an amount less than $10,000
                            for each such nonlisted agreement.

            3.11.2.

                    Except as set forth in Schedule 3.11.

                                     EX-250
<PAGE>

                            3.11.2.1.

                                    Each Contract is a valid and binding
                            agreement of the Company and, to the knowledge of
                            Sellers, of the other parties thereto, subject to
                            the effect of bankruptcy and creditors' rights
                            generally;

                            3.11.2.2.

                                    The Company has fulfilled all material
                            obligations required pursuant to each Contract to
                            have been performed by it or on its part prior to
                            the date hereof, and Sellers believe that, assuming
                            Buyer continues to operate the Company in the same
                            manner as Sellers, the Company will be able to
                            fulfill, when due, all of its obligations under the
                            Contracts which remain to be performed after the
                            date hereof;

                            3.11.2.3.

                                    There has not occurred any material default
                            under any Contract on the part of the Company or on
                            the part of the other parties thereto; and there has
                            not occurred any event which with the giving of
                            notice or the lapse of time, or both, would
                            constitute any material default under any of the
                            Contracts; and

                            3.11.2.4.

                                    Except as provided in the Contracts, the
                            Company is not, outside the ordinary course of
                            business, under any liability or obligation with
                            respect to the return of inventory or products sold,
                            rented or serviced by it which are in the possession
                            of distributors, wholesalers, retailers or other
                            customers.

                                    3.11.2.5. Except as set forth in Schedule
                            3.11, the Company has not committed a past breach of
                            any of its master service contracts.

     3.12.  REGULATORY APPROVALS.

            All material consents, approvals, authorizations and other
     requirements prescribed by any law, rule or regulation which must be
     obtained or satisfied by the Company or Sellers and which are necessary for
     the execution and delivery by Sellers of this Agreement and the documents
     to be executed and delivered by Sellers in connection herewith have been
     obtained and satisfied.

     3.13.  COMPLIANCE WITH LAW.

            The Company has not, and its business as presently conducted does
     not, violate, in any respect any Federal, state, local or foreign laws,
     regulations or orders (including, but not limited to, any of the foregoing
     relating to employment discrimination, occupational safety, the Americans
     With Disabilities Act, environmental protection, conservation, or corrupt
     practices), the enforcement of which would have a Material Adverse Effect,
     and the Company has not received any notice of any such violation. Sellers
     have obtained all permits, approvals, and consents of all governmental
     bodies or agencies necessary or appropriate so that

                                     EX-251
<PAGE>

     consummation of the transactions contemplated by this Agreement will be in
     compliance with applicable laws.

     3.14.  INDEBTEDNESS FROM EMPLOYEES.

            Except as set forth in Schedule 3.14. no employee of the Company are
     indebted to the Company, except for advances made to any employees in the
     ordinary course of business to meet reimbursable business expenses
     anticipated to be incurred by such employee.

     3.15.  ACCOUNTS RECEIVABLE.

            Except as set forth in Schedule 3.15., the accounts, accounts
     receivable, notes and notes receivable of the Company existing on June 30,
     1999 arose out of the sales of inventory or services in the ordinary course
     of business and are collectible in full, net of the reserve set forth in
     the Company's June 30, 1999 Financial Statement included in Schedule
     3.5.1., which reserves are reasonable and were calculated consistent with
     past practices.

     3.16.  INSURANCE.

            Schedule 3.16. sets forth a true and correct list of all insurance
     policies either maintained by the Company or maintained by any other person
     which relate to the Company in any manner whatsoever at the date hereof.
     There are no outstanding requirements or recommendations by any insurance
     company that issued any such policy or by any Board of Fire Underwriters or
     other similar body exercising similar functions or by any governmental
     authority exercising similar functions which requires or recommends any
     changes in the conduct of the business of, or any repairs or other work to
     be done on or with respect to any of the properties or assets of, the
     Company. The Company has not received any notice or other communication
     from any such insurance company within the three (3) years preceding the
     date hereof canceling or materially amending or materially increasing the
     annual or other premiums payable under any of said insurance policies, and
     no such cancellation, amendment or increase of premiums is threatened. The
     life insurance policies owned by the Company will, with Buyer's consent, be
     surrendered for the cash surrender value prior to Closing, and the cash
     received will be distributed.

     3.17.  POWERS OF ATTORNEY AND SURETYSHIPS.

            Except for guarantees by the Company of the indebtedness owed by O&M
     Equipment, Inc. to Whitney National Bank, the Company has no general or
     special powers of attorney outstanding (whether as grantor or grantee
     thereof) and has no obligation or liability (whether actual, accrued,
     accruing, contingent or otherwise) as guarantor, surety, co-signer,
     endorser, co-maker, indemnitor or otherwise in respect of the obligation of
     any person, corporation, partnership, joint venture, association,
     organization or other entity, except as endorser or maker of checks or
     letters of credit, respectively, endorsed or made in the ordinary course of
     business.

                                     EX-252
<PAGE>

     3.18.  NO UNDISCLOSED LIABILITIES.

            Except as and to the extent specifically reflected or reserved
     against in the Company's June 30, 1999 Financial Statement or otherwise
     disclosed herein, the Company has no liabilities or obligations of any
     nature, whether absolute, accrued, contingent or otherwise, and whether due
     or to become due (including, without limitation, any liability for taxes
     and interest, penalties and other charges payable with respect to any such
     liability or obligation) in accordance with GAAP which in the aggregate
     would constitute a Material Adverse Effect.

     3.19.  ENVIRONMENTAL MATTERS.

            As of the date hereof, (a) the Company has generated, utilized,
     stored, delivered for disposal, disposed of, treated, transported, and
     otherwise managed all materials, substances, and wastes, whether toxic,
     hazardous or otherwise, in compliance with all laws, rules, regulations,
     ordinances, guidelines, and the common law, except to the extent any such
     failure would not have a Material Adverse Effect; (b) the real or immovable
     property owned, leased, or operated by either (i) Sellers relating to the
     Company, or (ii) the Company is not listed on the National Priorities List,
     CERCLIS, RCRIS, or any comparable state listing which identifies sites for
     removal, remedial, clean-up or investigatory actions; (c) no amounts, which
     require remediation or reporting under applicable law, of asbestos, PCB's,
     ureaformaldehyde, hazardous and solid wastes, hazardous or toxic
     substances, petroleum products, pollutants or contaminates, and no above or
     underground storage tanks, have become located on the real or immovable
     property owned, leased, or currently operated by the Company, except to the
     extent the existence or remediation of such substances would not result in
     a Material Adverse Effect; and (d) the real or immovable property owned,
     leased, or operated by the Company has not been contaminated, tainted or
     polluted in any manner whatsoever (including, without limitation, any
     contamination of or injury or damage to soils, groundwater waters, biota,
     and wildlife located on, in, under or originating from such premises) with
     pollutants, contaminants or other substances or materials so as to give
     rise to a removal, remediation, clean-up, or investigatory obligation or
     action, and Sellers do not now have knowledge of any removal, remediation,
     investigatory or clean-up obligation or action which the Company has with
     respect thereto under any law, rule, regulation, guideline, ordinance,
     whether domestic or foreign, Federal, state, or local, or the common law,
     except to the extent any failure to comply with any such obligation would
     not result in a Material Adverse Effect.

                                     EX-253
<PAGE>

     3.20.  CONFLICT OF INTEREST.

            Except for the interests of Sellers in O&M Equipment, Inc. and as
     otherwise disclosed in Schedule 3.20., no officer, director or shareholders
     of the Company or any affiliate of any such person now has or within the
     last three (3) years had, either directly or indirectly:

            3.20.1.

                    any equity or debt interest in any corporation, partnership,
            joint venture, association, organization or other person or entity
            which furnishes or sells or during such period furnished or sold
            services or products to the Company, or purchases or during such
            period purchased from the Company any goods or services, or
            otherwise does or during such period did business with the Company;
            or

            3.20.2.

                    a beneficial interest in any contract, commitment or
            agreement, formal or informal, to which the Company is or was a
            party or under which it was obligated or bound or to which its
            properties may be or may have been subject, other than stock options
            and other contracts, commitments or agreements between the Company
            and such persons in their capacities as employees, officers or
            directors of the Company.

            3.20.3.

                    loaned money to or borrowed money from the Company.

     3.21.  TAXES.

            3.21.1.

                    For purposes of this Agreement: (i) the term "Taxes" means
            (A) all Federal, state, local, foreign and other net income, gross
            income, gross receipts, sales, use, ad valorem, value added,
            intangible, unitary, capital gain, transfer, franchise, profits,
            license, lease, service, service use, withholding, backup
            withholding, payroll, employment, estimated, excise, severance,
            stamp, occupation, premium, property, prohibited transactions,
            windfall or excess profits, customs, duties or other taxes, fees,
            assessments or charges of any kind whatsoever, together with any
            interest and any penalties, additions to tax or additional amounts
            with respect thereto, (B) any liability for payment of amounts
            described in clause (A) whether as a result of transferee liability,
            of being a member of an affiliated, consolidated, combined, unitary
            or other similar group for any period, or otherwise through
            operation of law and (C) any liability for the payment of amounts
            described in clauses (A) or (B) as a result of any tax sharing, tax
            indemnity or tax allocation agreement or any other express or
            implied agreement to indemnify any other Person;

                                     EX-254
<PAGE>

            and the term "Tax" means any one of the foregoing Taxes; and (ii)
            the term "Returns" means all returns, declarations, reports,
            statements and other documents required to be filed in respect of
            Taxes; and the term "Return" means any one of the foregoing Returns.

            3.21.2.

                    Schedule 3.21.2. sets forth: (i) the taxable years of the
            Company and Tax Affiliates (as defined in Section 3.21.3.) as to
            which the respective statutes of limitations on the assessment of
            United States Federal income and any applicable state, local or
            foreign income or franchise Taxes have not expired, and (ii) with
            respect to such taxable years sets forth those years for which
            examinations by the IRS or the state, local or foreign taxing
            authority have been completed, those years for which examinations by
            such agencies are presently being conducted, those years for which
            notice of pending or threatened examination or adjustment has been
            received, those years for which examinations by such agencies have
            not been initiated, and those years for which required Returns for
            such Taxes have not yet been filed. Except to the extent indicated
            in Schedule 3.21.2., all deficiencies asserted or assessments made
            as a result of any examinations by the IRS or state, local or
            foreign Tax authority have been fully paid, or are fully reflected
            as a liability in the Company's June 30, 1999 Financial Statement,
            or are fully described in Schedule 3.21.2., are being contested in
            good faith and an adequate reserve therefor has been established and
            is fully reflected in the Company's June 30, 1999 Financial
            Statement to the extent required by GAAP. Except as described in
            Schedule 3.21.2., there are no Returns that are presently under
            examination with respect to Taxes, there are no proposed (whether
            oral or written) or final adjustments, assessments or deficiencies
            with respect to Taxes currently pending, and there are no
            outstanding notices of proposed or actual audit, examination or
            investigation with respect to Taxes.

            3.21.3.

                    Sellers represent and warrant to Buyer that, except as
            described in Schedule 3.21.3.:

                            3.21.3.1.

                                    the Company, and every other person for
                            whose Taxes the Company is or could be held liable
                            (whether by reason of being a member of a
                            consolidated, combined, unitary, or other similar
                            group for Tax purposes, by reason of being a
                            successor, by agreement or otherwise (for the
                            taxable period(s) or portions thereof with respect
                            to which the Company is or could be held for such
                            other Person's Taxes) (all such persons collectively
                            referred to herein as "Tax Affiliates"), have filed
                            on a timely basis all Returns required to have been
                            filed by it and have paid on a timely basis all
                            Taxes shown thereon as due. All

                                     EX-255
<PAGE>

                            such Returns are true, complete and correct in all
                            material respects. The provisions for Taxes in the
                            Company's June 30, 1999 Financial Statement sets
                            forth the maximum liability of the Company and Tax
                            Affiliates for Taxes as of the date thereof. No
                            liability for Taxes has been incurred by the Company
                            or any Tax Affiliate since June 30, 1999 other than
                            in the ordinary course of their business. No
                            director, officer or employee of the Company or any
                            Tax Affiliate having responsibility for Tax matters
                            is in discussions with Tax authorities or has reason
                            to believe that any Tax authority has valid grounds
                            to claim or assess any additional Tax with respect
                            to the Company or any Tax Affiliate in excess of the
                            amounts shown on the Company's June 30, 1999
                            Financial Statement for the period ending on such
                            date;

                            3.21.3.2.

                                    with respect to all amounts in respect of
                            Taxes imposed upon the Company or Tax Affiliates, or
                            for which the Company is or could be liable, whether
                            to taxing authorities (as, for example, under law)
                            or to other persons or entities (as, for example,
                            under tax allocation agreements), and with respect
                            to all taxable periods or portions of periods ending
                            on or before the Closing, all applicable Tax laws
                            and agreements have been fully complied with in all
                            material respects, and all such amounts required to
                            be paid by the Company and Tax Affiliates to Tax
                            authorities or others have been paid;

                            3.21.3.3.

                                    none of the Returns required to be filed by
                            the Company or any Tax Affiliate contains, or were
                            required to contain (in order to avoid the
                            imposition of a penalty), a disclosure statement
                            under Section 6662 (or any predecessor provision) of
                            the Code, or any similar provision of state, local
                            or foreign law;

                            3.21.3.4.

                                    all amounts that were required to be
                            collected or withheld by the Company or any Tax
                            Affiliate have been duly collected or withheld in
                            all material respects, and all such amounts that
                            were required to be remitted to any Tax authority
                            have been duly remitted in all material respects;

                            3.21.3.5.

                                    the Company and Tax Affiliates have not
                            requested an extension of time to file any Return
                            not yet filed, and have not granted any waiver of
                            any statute of limitations with respect to, or any
                            extension of a period for the assessment of, any
                            Tax. No power of attorney granted by the Company or
                            any Tax Affiliate with respect to Taxes is in force;

                                     EX-256
<PAGE>

                            3.21.3.6.

                                    Sellers, the Company and Tax Affiliates have
                           not taken any action not in accordance with past
                           practice that would have the effect of deferring any
                           material Tax liability of the Company or any Tax
                           Affiliate from any taxable period or portion thereof
                           ending on or before or including the Closing to any
                           subsequent taxable period;

                            3.21.3.7.

                                    Schedule 3.21.3.7. sets forth all Tax
                            Affiliates during all periods with respect to which
                            the applicable statue of limitations on the
                            assessment of Taxes remains open;

                            3.21.3.8.

                                    there are no actual or deemed elections
                            under Section 338 of the Code, protective carryover
                            basis elections, offset prohibition elections or
                            similar elections applicable to the Company or any
                            Tax Affiliate;

                            3.21.3.9.

                                    neither the Company nor any Tax Affiliate is
                            required to include in income any adjustment
                            pursuant to Sections 481 or 263A of the Code (or
                            similar provisions of other law or regulations) by
                            reason of a change in accounting method or
                            otherwise, following the Closing, and Sellers have
                            no knowledge that the IRS (or other Tax authority)
                            has proposed, or is considering, any such change in
                            accounting method or other adjustment;

                            3.21.3.10.

                                    there are no liens for Taxes (other than for
                            current Taxes not yet due and payable) upon the
                            assets of the Company;

                            3.21.3.11.

                                    the Company is not party to any agreement,
                            contract, arrangement or plan that has resulted or
                            would result, separately or in the aggregate, in the
                            payment of any "excess parachute payments" within
                            the meaning of Section 280G of the Code, whether by
                            reason of the Closing or otherwise;

                            3.21.3.12.

                                    the Company is not, and has not been, a
                            United States real property holding corporation (as
                            defined in Section 897(c)(2) of the Code) during the
                            applicable period specified in Section
                            897(c)(1)(A)(ii) of the Code (or any corresponding
                            provision of state, local or foreign Tax law);

                                     EX-257
<PAGE>

                            3.21.3.13.

                                    neither the Company nor any Tax Affiliate
                            has or has had a permanent establishment in any
                            foreign country, as defined in any applicable Tax
                            treaty or convention between the United States of
                            America and such foreign country and the Company has
                            not engaged in a trade or business within any
                            foreign country;

                            3.21.3.14.

                                    neither the Company nor any Tax Affiliate is
                            a party to any joint venture, partnership, or other
                            arrangement or contract which could be treated as a
                            partnership for Federal income tax purposes;

                            3.21.3.15.

                                    neither the Company nor any Tax Affiliate is
                            or has been a member of an "affiliated group" as
                            such term is defined in Section 1504 of the Code
                            (and any predecessor provision) of the Code, or any
                            similar group for state, local or foreign Tax
                            purposes;

                            3.21.3.16.

                                    neither the Company nor any Tax Affiliate
                            has filed a consent pursuant to the collapsible
                            corporation provisions of Section 341(f) of the Code
                            (or any corresponding provision of state, local or
                            foreign income Tax law) or agreed to have Section
                            341(f)(2) of the Code (or any corresponding
                            provision of state, local or foreign income Tax law)
                            apply to any disposition of any asset owned by any
                            of them;

                            3.21.3.17.

                                    neither the Company nor any Tax Affiliate
                            has participated in an international boycott within
                            the meaning of Section 999 of the Code;

                            3.21.3.18.

                                    the Company is not a party to or bound by
                            any Tax sharing agreement, and has no current or
                            contingent contractual obligation to indemnify any
                            other person with respect to Taxes, other than
                            obligations to indemnify a lessor for property
                            Taxes, sales/use Taxes or gross receipts Taxes (but
                            not income or franchise Taxes) imposed on lease
                            payments arising from terms that are customary for
                            leases of similar property;

                            3.21.3.19.

                                    the Company is not a party to or bound by
                            any closing agreement or offer in compromise with
                            any Tax authority;

                            3.21.3.20.

                                    none of the assets of the Company is
                            property that the Company is required to treat as
                            being owned by any other person pursuant to the
                            so-called "safe harbor lease" provisions of former
                            Section 168(f)(8) of

                                     EX-258
<PAGE>

                            the Internal Revenue Code of 1954, as amended; none
                            of the assets of the Company directly or indirectly
                            secures any debt the interest on which is tax exempt
                            under Section 103(a) of the Code; none of the assets
                            of the Company is "tax-exempt use property" within
                            the meaning of Section 168(h) of the Code;

                            3.21.3.21.

                                    no material election with respect to Taxes
                            of the Company or Tax Affiliates has been made from
                            and after the date of this Agreement;

                            3.21.3.22.

                                    Schedule 3.21.3.22. sets forth all Returns
                            with respect to the Company and Tax Affiliates the
                            due dates for which (including any valid extensions
                            thereof) are sixty or fewer days following the
                            Closing, and the Taxes for which estimated or final
                            payments may, based on the current operations of the
                            Company and Tax Affiliates, become due in sixty or
                            fewer days following the Closing;

                            3.21.3.23.

                                    Schedule 3.21.3.23. sets forth all state,
                            local or foreign jurisdictions in which the Company
                            is or at any time during the past five years has
                            been subject to Tax;

                            3.21.3.24.

                                    the Company has not incurred any liability
                            for Taxes pursuant to Section 1374 or 1375 of the
                            Code (and any predecessor provision and any similar
                            provision applicable state, local or other Tax law);
                            and

                            3.21.3.25.

                                    all outstanding options to acquire equity of
                            the Company that purport to or were otherwise
                            intended (when issued) to be treated as "incentive
                            stock options" ("ISOs") within the meaning of
                            Section 422 of the Code (and any predecessor
                            provision and any similar provision applicable
                            state, local or other Tax law) were issued in
                            compliance with such section. All such outstanding
                            options currently qualify for treatment as ISOs, and
                            are held by persons who are employees of the
                            Company.

     3.22.   LIENS.

            Except as disclosed on Schedule 3.22., none of the properties and
     assets owned, leased, and/or used by the Company or its Subsidiaries is
     subject to any lien, charge, mortgage, pledge, security interest, or other
     encumbrance of any kind. Schedule 3.22 also sets forth a description of any
     indebtedness owed by the Company which is guaranteed in writing by any of
     the Sellers and/or secured by collateral granted by any of the Sellers.

                                     EX-259
<PAGE>

     3.23.   OTHER INFORMATION.

            The information provided by Sellers to Buyer in this Agreement or in
     the Schedules does not contain any untrue statement of a material fact or
     omit to state a material fact required to be stated herein or therein or
     necessary to make the statements and facts contained herein or therein, in
     light of the circumstances in which they are made, not false or misleading.
     Copies of all documents heretofore delivered or made available to Buyer
     were complete and accurate records of such documents in all respects.

     3.24.   NO OTHER REPRESENTATIONS.

            Sellers are not making any representation or warranty, express or
     implied, of any nature whatsoever, except as specifically set forth in this
     Agreement and the other documents executed in connection herewith.

     3.25.   NO KNOWN BREACHES.

            Sellers have no actual knowledge that Buyer's representations and
     warranties in this Agreement are untrue and Sellers shall not be entitled
     to make any indemnity claims pursuant to Section 6. hereof with respect to
     any matters constituting a breach of this Section 3.25.

4.   REPRESENTATIONS AND WARRANTIES OF BUYER.

     Buyer represents and warrants to Sellers that:

     4.1.   ORGANIZATION.

            Buyer is duly organized, validly existing and in good standing under
     the laws of the State of Delaware and has all requisite corporate power and
     authority to enter into this Agreement and to consummate the transactions
     contemplated hereby.

     4.2.   CORPORATE AUTHORITY.

            This Agreement and all other agreements herein contemplated to be
     executed in connection herewith have been duly executed and delivered by
     Buyer, have been effectively authorized by all necessary action, corporate
     or otherwise, and constitute legal, valid and binding obligations of Buyer.

                                     EX-260
<PAGE>

     4.3.   AGREEMENT NOT IN BREACH OF OTHER INSTRUMENTS.

            The execution and delivery of this Agreement, the consummation of
     the transactions contemplated hereby and the fulfillment of the terms
     hereof will not result in a breach of any of the terms or provisions of, or
     constitute a default under, or conflict with, any material agreement,
     indenture or other instrument to which Buyer is a party or by which it is
     bound, Buyer's Certificate of Incorporation or Bylaws, any judgment,
     decree, order or award of any court, governmental body or arbitrator, or
     any law, rule or regulation applicable to Buyer.

     4.4.   INVESTMENT INTENT.

            Buyer is acquiring the Shares with the intention as of the date
     hereof of holding the Shares for purposes of investment, and Buyer has no
     intention as of the date hereof of selling the Shares in a public
     distribution in violation of Federal securities laws or any applicable
     state securities laws.

     4.5.   REGULATORY AND OTHER APPROVALS.

            All consents, approvals, authorizations and other requirements
     prescribed by any law, rule or regulation, including any third party
     consents, which must be obtained or satisfied by Buyer and which are
     necessary for the execution and delivery of this Agreement and the
     consummation of the transactions contemplated by this Agreement have been
     obtained and satisfied.

     4.6.   NO KNOWN BREACHES.

            Buyer has no actual knowledge that Sellers' representations and
     warranties in this Agreement are untrue, and Buyer shall not be able to
     make any indemnity claims pursuant to Section 6. hereof with respect to any
     matters constituting a breach of this Section 4.6.

     4.7.   OTHER INFORMATION.

            The information provided by Buyer to Sellers in this Agreement or in
     the Schedules does not contain any untrue statement of a material fact or
     omit to state a material fact required to be stated herein or therein or
     necessary to make the statements and facts contained herein or therein, in
     light of the circumstances in which they are made, not false or misleading.

                                     EX-261
<PAGE>

     4.8.   NO OTHER REPRESENTATIONS.

            Buyer is not making any representation or warranty, express or
     implied, of any nature whatsoever, except as specifically set forth in this
     Agreement and the other documents executed in connection herewith.

5.   CERTAIN UNDERSTANDINGS AND AGREEMENTS OF THE PARTIES.

     5.1.   COOPERATION IN LITIGATION.

            Each party will fully cooperate with the other in the defense or
     prosecution of any litigation or proceeding already instituted or which may
     be instituted hereafter against or by such party relating to or arising out
     of the conduct of the Company prior to or after the Closing Date (other
     than litigation arising out of the transactions contemplated by this
     Agreement). The party requesting such cooperation shall pay the
     out-of-pocket expenses (including legal fees and disbursements) of the
     party providing such cooperation and of its officers, directors, employees
     and agents reasonably incurred in connection with providing such
     cooperation, but shall not be responsible to reimburse the party providing
     such cooperation for such party's time spent in such cooperation or the
     salaries or costs of fringe benefits or other similar expenses paid by the
     party providing such cooperation to its officers, directors, employees and
     agents while assisting in the defense or prosecution of any such litigation
     or proceeding.

     5.2.   TAX MATTERS.

            5.2.1.  PRE-CLOSING RETURNS.

                    Sellers will be responsible for and will cause to be
            prepared and duly filed all Returns in which the Company is
            includable for all taxable periods ending on or before the Closing.
            All such Returns shall be prepared in a manner consistent with prior
            periods. All such Returns filed after the Closing shall be submitted
            to Buyer no later than thirty days prior to the due date and filing
            thereof, and Buyer shall have the right to review and comment
            thereon (without reduction of Sellers' obligations to indemnify
            under this Agreement). Sellers will pay or cause to be paid, and
            shall indemnify and hold Buyer and the Company harmless against, all
            Taxes to which such Returns relate; provided, however, that to the
            extent such Taxes are included in and specifically identified on the
            Audited Closing Balance Sheet (as finally determined) or an
            attachment or schedule thereto, Buyer shall reimburse Sellers for
            such Taxes within ten business days following the later of: (i) the
            receipt by Buyer of written evidence of actual payment of such Taxes
            by

                                     EX-262
<PAGE>

            Sellers or (ii) the date the Audited Closing Balance Sheet becomes
            final and binding.

            5.2.2.  OVERLAP PERIOD RETURNS

                    Other than Returns to be prepared by Sellers pursuant to
            Section 5.2.1., Buyer will prepare or cause to be prepared all
            Returns of the Company for any and all taxable periods which include
            and end after the Closing (the "Overlap Period"), and any taxable
            period beginning after the Closing. Sellers will be responsible for
            and will indemnify and hold harmless Buyer, and the Company with
            respect to all Taxes for the Overlap Period in an amount equal to
            the liability for Taxes that would have resulted had the Overlap
            Period ended at the Closing (utilizing, if applicable, the actual
            tax rate imposed on a particular category of income by the
            applicable taxing jurisdiction), except to the extent such Taxes are
            included in and specifically identified on the Audited Closing
            Balance Sheet (as finally determined) or an attachment or schedule
            thereto. Any amount so payable by Sellers will be remitted to Buyer
            at least ten business days prior to the due date of the respective
            Returns pursuant to written notice by the Buyer of such due date;
            provided that Sellers approve of the amount (such approval not to be
            unreasonably withheld).

            5.2.3.  AMENDED RETURNS.

                    From and after the date hereof, Sellers and their affiliates
            shall not file or cause to be filed any amended Return with respect
            to the Company, and Sellers and their affiliates shall not file a
            claim for refund of Taxes paid by or on behalf of the Company.

            5.2.4.  MATERIAL ELECTIONS.

                    Neither Sellers nor the Company shall make any material
            election with respect to Taxes of the Company or any Tax Affiliate
            following the date hereof without the prior written approval of
            Buyer (such approval not to be unreasonably withheld).

                                     EX-263
<PAGE>

            5.2.5.  TAX INFORMATION.

                    After the Closing, Sellers, on the one hand, and Buyer and
            the Company, on the other hand, will make available to the other, as
            reasonably requested, all information, records or documents relating
            to liabilities for Taxes for all periods prior to or including the
            Closing and will preserve such information, records or documents
            until the expiration of any applicable statute of limitations or
            extensions thereof.

            5.2.6.  TAX SHARING AGREEMENTS.

                    Any and all tax sharing, tax indemnity, or tax allocation
            agreements with respect to which the Company was a party at any time
            prior to the Closing shall terminate upon the Closing. No further
            amounts shall be payable by the Company under such agreements
            following the Closing.

            5.2.7.  CERTAIN TAXES.

                    All sales, value added, use, transfer, registration, stamp
            and similar Taxes imposed in connection with the sale of the Shares
            shall be borne by Sellers.

     5.3.   EMPLOYMENT AND CONFIDENTIALITY AGREEMENTS.

                    5.3.1. At the Closing, Buyer shall enter into an employment
            agreement with Randy P. Deroche, Sr. in substantially the form
            attached hereto as Exhibit 5.3.1., which employment agreement shall
            contain confidentiality provisions and two-year non-compete
            provisions commencing upon termination of employment. In addition,
            Buyer may enter into employment agreements with other Deroche family
            members as recommended by Randy P. Deroche, Sr. and approved by
            Buyer. Any such employment agreement will be in substantially the
            form attached hereto as Exhibit 5.3.1., and shall contain
            confidentiality provisions and two-year non-compete provisions
            commencing upon termination of employment.

                    5.3.2. At the Closing, Buyer shall enter into
            confidentiality agreements with the employees and/or shareholders of
            the Company listed in Schedule 5.3.2. in substantially the form
            attached hereto as Exhibit 5.3.2.; provided, however, it is agreed
            and understood that the Sellers who own less than a 2% interest in
            the Company are not required to execute the said confidentiality
            agreement.

     5.4.   MERGER.

            Immediately after the Closing, Randy Paul Deroche, Sr. and Buyer
     agree to merge Prepared Industries Acquisition Corp. into the Company.
     Further, Randy Paul Deroche, Sr. agrees to transfer the Non-Purchased
     Shares to Buyer and Buyer agrees to issue and transfer stock to Randy Paul
     Deroche, Sr. as set forth in Section 1.2. above.

                                     EX-264
<PAGE>

6.   INDEMNIFICATION.

     6.1.   INDEMNIFICATION BY SELLERS.

            Sellers shall indemnify and hold harmless Buyer, the Company, and
     their respective officers (including without limitation Michael L.
     Stansberry and Michael T. Mino), employees, agents, attorneys (including
     without limitation Liskow & Lewis and Gibson, Dunn & Crutcher, L.L.P. and
     their respective shareholders, partners, associates and other employees)
     and shareholders (collectively, the "Buyer Group") in respect of any and
     all claims, losses, damages, liabilities and expenses (including, without
     limitation, settlement costs and any reasonable legal, accounting and other
     expenses for investigating or defending any actions or threatened actions)
     incurred (collectively, "Losses") by the Buyer Group, together with
     interest on cash disbursements in connection therewith at the base rate for
     prime commercial lenders of Buyer's primary bank as announced from time to
     time, plus 1 percent per annum (the "Reference Rate") from 60 days after
     the date such Losses were incurred by the Buyer Group until paid by
     Sellers, in connection with each and all of the following:

            6.1.1.

                    any material breach of any representation or warranty made
            by Sellers in this Agreement;

            6.1.2.

                    the material breach of any covenant, agreement or obligation
            of Sellers contained in this Agreement or any other instrument
            delivered at the Closing;

            6.1.3.

                    any material misrepresentation contained in any Schedule,
            certificate or other documents furnished by Sellers pursuant to this
            Agreement;

            6.1.4.

                    the failure to pay when due any and all liabilities for
            Taxes (as defined in Section 3.21.1.) that (i) accrued with respect
            to any taxable periods of the Company ending on or before the
            Closing Date, (ii) accrued with respect to the assets, operations or
            business of the Company during all periods up to and including the
            Closing whether or not such periods are taxable periods, or (iii)
            are incurred and become payable by the Company or Buyer as a result
            of the transactions contemplated by this Agreement;

            6.1.5.

                    any material claim, demand or cause of action asserted or
            brought by any person for breach of warranty, or similar claims in
            connection with sales of products sold or leased by the Company at
            any time prior to the Closing Date or which comprised any part of
            the Inventory existing on the Closing Date and which was sold by
            Buyer within 90 days after the Closing Date;

                                     EX-265
<PAGE>

            6.1.6.

                    any material claim, demand or cause of action asserted or
            brought by any person for physical injury to, death of, or property
            damage suffered by such person or any other person which was
            approximately caused by any products sold or leased by the Company
            at any time prior to the Closing Date;

            6.1.7.

                    the material violation of any Federal, state, local or
            foreign laws, regulations, orders, requirements or ordinances,
            including those dealing with environmental matters, prior to the
            Closing Date by Sellers, the Company or any of their affiliates,
            agents or assigns; and

            6.1.8.

                    (a) conditions existing at, or caused by events prior to the
            Closing Date which are violations of any Federal, state or local
            environmental statute, regulation, requirement or ordinance prior to
            the Closing Date with respect to the Company or any of its assets,
            and (b) any other environmental conditions in existence as of the
            Closing Date on the real or immovable property owned, leased or used
            by the Company, whether or not described in Schedule 3.6.1((a) and
            (b) being collectively referred to herein as "Environmental
            Conditions"), which as of the Closing, or will in the future as a
            result of the operation of the Company prior to Closing, require
            remediation, removal, or other corrective actions, including without
            limitation the Environmental Conditions listed in Schedule 6.1.8.
            With respect to each and every Environmental Condition, Sellers'
            obligation to indemnify the Buyer Group from any Losses shall
            include but not be limited to: (i) fines, penalties, assessments and
            judgments (whether related to current or past activities); (ii)
            costs associated with obtaining any necessary permits, certificates
            or other governmental approval or complying with environmental
            reporting or record keeping requirements, including (A) remediation
            costs, (B) removal costs, (C) costs of implementing monitoring
            equipment which are necessary to obtain such permits, certificates
            or approvals, and (D) late fees and filing fees; and (iii) any costs
            which Buyer deems reasonably necessary in connection with the
            foregoing, including without limitation costs of environmental
            audits, surveys, reports, waste characterizations, monitoring wells,
            soil borings, tests and samples, provided that such costs incurred
            by Buyer pursuant to this Section 6.1.8. must be approved by Sellers
            in advance, which consent will be timely given and not unreasonably
            withheld, collectively, "Environmental Costs").

     6.2.   INDEMNIFICATION BY BUYER.

            Buyer shall indemnify and hold harmless Sellers and their respective
     officers, employees, agents, and shareholders, if any (collectively, the
     "Seller Group"), in

                                     EX-266
<PAGE>

     respect of any and all Losses (as defined above) reasonably incurred by
     Sellers, together with interest on cash disbursements in connection
     therewith at the Reference Rate from 60 days after the date that such
     Losses were incurred by the Seller Group until paid by Buyer, in connection
     with each and all of the following:

            6.2.1.

                    any material breach of any representation or warranty made
            by Buyer in this Agreement.

            6.2.2.

                    the material breach of any covenant, agreement or obligation
            of Buyer contained in this Agreement or any other instrument
            delivered at the Closing;

            6.2.3.

                    any material misrepresentation contained in any Schedule,
            certificate or any other document furnished by Buyer pursuant to
            this Agreement;

                                     EX-267
<PAGE>

            6.2.4.

                    the operation of the Company after the Closing Date;

            6.2.5.

                    any material claim, demand or cause of action (including
            warranty claims and claims relating to physical injury, death or
            property damage) relating to or approximately caused by either (i)
            products manufactured by the Company after the Closing Date or (ii)
            any products sold or leased by the Company more than 90 days after
            the Closing Date;

            6.2.6.

                    the material violation of any Federal, state, local or
            foreign laws, regulations, orders, requirements or ordinances,
            including those dealing with environmental matters, on or after the
            Closing Date by Buyer and its affiliates, agents or assigns in
            relation to the Company, except with regard to existing practices of
            the Company; and

            6.2.7.

                    any Environmental Condition relating to the Company which,
            except with regard to the existing practices of the Company, result
            from the operations of the Company on or after the Closing Date or
            which came into existence on or after the Closing Date (including,
            but not limited to, Environmental Costs to the extent they directly
            arise from such violations).

     6.3.   CLAIMS FOR INDEMNIFICATION.

            Whenever any claim shall arise for indemnification hereunder, the
     party entitled to indemnification (the "indemnified party") shall promptly
     notify the other party (the "indemnifying party") of the claim and, when
     known, the facts constituting the basis for such claim. In the event of any
     claim for indemnification hereunder resulting from or in connection with
     any claim or legal proceedings by a third party, the notice to the
     indemnifying party shall specify, if known, the amount or an estimate of
     the amount of the liability potentially arising therefrom. The indemnified
     party shall not settle or compromise any claim by a third party for which
     it is entitled to indemnification hereunder, without the prior written
     consent of the indemnifying party; provided, however, that if such consent
     is not granted the amount of indemnity provided by the indemnifying party
     shall not be limited by Section 6.4. or 6.6. and, if Buyer is the
     indemnified party, at the election of Buyer, only the portion of any loss
     equal to the refused settlement shall be deducted or payable from the
     Escrow Account, all other amounts shall be paid directly to Buyer by wire
     transfer by Sellers or the distributees of the assets of the Sellers.

     6.4.   DEFENSE BY INDEMNIFYING PARTY.

                                     EX-268
<PAGE>

            In connection with any claim giving rise to indemnity hereunder
     resulting from or arising out of any claim or legal proceeding by a person
     who is not a party to this Agreement, the indemnifying party at its sole
     cost and expense may, upon written notice to the indemnified party given
     within 30 days after delivery of the written notice referred to in Section
     6.3. hereof, assume the defense of any such claim or legal proceeding if it
     acknowledges to the indemnified party in writing its obligations to
     indemnify the indemnified party with respect to all elements of such claim.
     The indemnified party shall be entitled to participate in (but not control)
     the defense of any such action, with its own counsel and at its own
     expense. If the indemnifying party does not assume the defense of any such
     claim or litigation resulting therefrom, (a) the indemnified party may
     defend against such claim or litigation, in such manner as it may deem
     appropriate, including, but not limited to, settling such claim or
     litigation, after giving notice of the same to the indemnifying party, on
     such terms as the indemnified party may deem appropriate, and (b) the
     indemnifying party shall be entitled to participate in (but not control)
     the defense of such action, with its counsel and at its own expense. If the
     indemnifying party thereafter seeks to question the manner in which the
     indemnified party defended such third party claim or the amount or nature
     of any such settlement, the indemnifying party shall have the burden to
     prove by a preponderance of the evidence that the indemnified party did not
     defend or settle such third party claim in a reasonably prudent manner as a
     prudent businessman would if his own funds were subject to such suit.

     6.5.   MANNER OF INDEMNIFICATION.

            All indemnification by either party hereunder shall be effected by
     payment of cash or delivery of a certified or official bank check in
     immediately available funds in the amount of the indemnification liability.

     6.6.   LIMITATIONS ON INDEMNIFICATION.

            Subject to any limitations contained therein, all representations
     and warranties made by the parties herein or in any instrument or document
     furnished in connection herewith shall survive the Closing and any
     investigation at any time made by or on behalf of the parties hereto and
     shall expire twenty-four months after the Closing Date, except (i) as to
     any matter as to which a claim is submitted in writing to the indemnifying
     party prior to the applicable expiration date and identified as a claim for
     indemnification pursuant to this Agreement; (ii) as to any representation
     or warranty relating to ownership or title to the Shares or the Company's
     assets, including real or immovable property, which shall not expire; (iii)
     as to any matter which is based upon willful fraud by the indemnifying
     party, with respect to which the representations and warranties set forth
     in this Agreement shall expire only upon expiration of the applicable
     statute of limitations plus 60 days; (iv) as to any representation or
     warranty concerning tax or environmental matters, which shall expire only
     upon the expiration of the applicable statute of limitations plus 45 days;
     and (v) as to any representation or warranty concerning the authority to
     execute this Agreement or any of the other

                                     EX-269
<PAGE>

     documents contemplated hereby, which shall not expire. No claim or action
     for indemnity pursuant to Sections 6.1. or 6.2. hereof for breach of any
     representation or warranty shall be asserted or maintained by any party
     hereto after the expiration of such representation or warranty pursuant to
     the preceding sentence except for claims made in writing prior to such
     expiration and actions (whether instituted before or after such expiration)
     based on any claim made in writing prior to such expiration.
     Notwithstanding any other provisions contained in this Agreement, (i)
     neither Buyer nor Sellers shall be entitled to receive any amount under
     this Section 6. which exceeds the Purchase Price; (ii) Buyer shall not be
     entitled to payment under this Section 6. for a breach of any
     representation or warranty by Sellers contained in this Agreement except
     for the amount by which the aggregate of all breach of warranty or
     representation claims hereunder which have not theretofore been reimbursed
     to Buyer exceeds the sum of $180,000.00, and (iii) Sellers shall not be
     entitled to payment under this Section 6. except for the amount by which
     the aggregate of all claims hereunder which have not theretofore been
     reimbursed to Sellers, exceeds $180,000.00. In the event the $180,000.00
     threshold mentioned in clause (ii) or (iii) of the preceding sentence is
     exceeded, Buyer or Sellers, as the case may be, shall then have the right
     to seek reimbursement of said threshold amount from Sellers or Buyer, as
     the case may be, under this Section 6. Notwithstanding anything contained
     in this Section 6.6., the limits on indemnification contained in the
     preceding sentence shall exclude any obligations specifically assumed by
     any party in this Agreement, including without limitation, the obligations
     relating to Taxes and brokers as described in Sections 3.2.1., 5.2., and
     9.5. respectively.

     6.7.   SOLE BASIS FOR RECOVERY.

            Unless specifically provided for elsewhere in this Agreement, the
     parties intend Section 6. to be the exclusive method for compensating each
     other for, or indemnifying each other against, claims relating to the
     Company and the transactions contemplated by this Agreement.

                                     EX-270
<PAGE>

     6.8.   JOINT AND SEVERAL LIABILITY.

            The liability of Steven A. Labat, Hansen Nelton, Jr. and Timothy J.
     Ledet under this Section 6. shall be limited to their respective percentage
     interests in the Company as set forth in Section 2.2.2. above. The
     liability of all other Sellers under this Section 6. shall be joint and
     several, and in solido. Buyer shall not have any obligation to marshal its
     claims hereunder to minimize the obligations of any of the Sellers.

7.   DOCUMENTS TO BE DELIVERED AT CLOSING.

     7.1.   CLOSING DOCUMENTS DELIVERED BY SELLERS.

            Buyer shall have received at the Closing the following documents,
     dated as of the Closing date:

                    7.1.1. The Employment Agreement(s) referred to in Section
            5.3.1. above, duly executed by Randy Paul Deroche, Sr. and each
            other member of the Deroche family recommended by Randy Paul
            Deroche, Sr. and approved by Buyer.

                    7.1.2. The Confidentiality Agreements referred to in Section
            5.3.2. above, duly executed by the individuals listed in Schedule
            5.3.2.

                    7.1.3. Stock certificates representing the Purchased Shares,
            duly endorsed for transfer.

                    7.1.4. An opinion of counsel to Sellers in a form acceptable
            to counsel to Buyer regarding the ownership of the Shares and the
            authority of each of the Sellers to enter into this Agreement and to
            consummate the transactions contemplated hereby.

                    7.1.5. Any other documents, certificates, or instruments
            contemplated by this Agreement to be delivered by Sellers to Buyer,
            including but not limited to the Consents listed in Schedule 3.7.

                    7.1.6. A fully executed certification of non-foreign status
            described in Treasury Regulation Section 1.1445-2(a)(2) (and
            applicable provisions of state law), in form and substance
            reasonably satisfactory to counsel to Buyer, from each Seller.

                    7.1.7. Executed letters of resignation by each officer and
            director of the Company.

                                     EX-271
<PAGE>

     7.2    CLOSING DOCUMENTS DELIVERED BY BUYER.

            Sellers shall have received at the Closing the following documents,
     dated as of the Closing date:

                    7.2.1. Any documents, certificates, or instruments
            contemplated by this Agreement to be delivered by Buyer to Sellers.

8.   RELEASE.

     (a) As of the Closing Date and, except as may be set forth in Section
6.2. of this Agreement, each of the Sellers does hereby for himself and his
successors and assigns remise, release, acquit and forever discharge the Buyer,
the Company, and their respective affiliates, and their successors and assigns,
of and from any and all claims, demands, liabilities, responsibilities,
disputes, causes of action and obligations of every nature whatsoever,
liquidated or unliquidated, known or unknown, matured or unmatured, fixed or
contingent, that such Seller or its affiliates now has, owns or holds or has at
any time previously had, owned or held against such parties, including without
limitation all liabilities created as a result of the negligence, gross
negligence and willful acts of the Company and its employees and agents, or
under a theory of strict liability, existing as of the Closing Date or relating
to any action, omission or event occurring on or prior to the Closing Date;
provided, however, that any claims, liabilities, debts or causes of action that
may arise in connection with the failure of any of the parties hereto to perform
any of their obligations hereunder or under any other agreement relating to the
transactions contemplated hereby or from any breaches by any of them of any
representations or warranties herein or in connection with any of such other
agreements shall not be released or discharged pursuant to this Agreement.

     (b) Each of the Sellers represents and warrants that, he has not
previously assigned or transferred, or purported to assign or transfer, to any
person or entity whatsoever all or any part of the claims, demands, liabilities,
responsibilities, disputes, causes of action or obligations released herein.
Each of the Sellers covenants and agrees that such Seller will not assign or
transfer to any person or entity whatsoever all or any part of the claims,
demands, liabilities, responsibilities, disputes, causes of action or
obligations to be released herein. Each of the Sellers represents and warrants
that such Seller has read and understands all of the provisions of this Section
8. and that he has been represented by legal counsel of his own choosing in
connection with the negotiation, execution and delivery of this Agreement.

     (c) The release provided by the Sellers pursuant to this Section 8.
shall apply notwithstanding that the matter for which release is provided may
relate to the ordinary, sole or contributory negligence, gross negligence,
willful misconduct or violation of law by a released party, including the Buyer
and the Company and their respective officers, directors, employees and agents,
and for liabilities based on theories of strict liability, and shall be
applicable whether or not negligence of the released party is alleged or proven,
it being the intention of the parties to release the released party from and
against its ordinary, sole and contributory negligence and gross negligence as
well as liabilities based on the willful actions or omissions of the released
party and liabilities based on theories of strict liability.

9.   MISCELLANEOUS.

     9.1.   NOTICES.

                                     EX-272
<PAGE>

            All notices, requests, demands, and other communications hereunder
     shall be in writing and shall be deemed given if delivered personally or
     sent by fax during normal business hours of the recipient, the next
     business day if sent by a national overnight delivery service, charges
     prepaid, or three (3) days after mailed by certified or registered mail,
     postage prepaid, return receipt requested, to the parties, their successors
     in interest or their assignees at the following addresses, or at such other
     addresses as the parties may designate by written notice in the manner
     aforesaid:

                                     EX-273
<PAGE>

                  If to Buyer:

                           T-3 Energy Services, Inc.
                           600 Travis, Suite 6000
                           Houston, Texas  77002
                           Attention:  Mr. Michael L. Stansberry

                  With a copy to:

                           First Reserve Corporation
                           1801 California Street
                           Denver, Colorado  80202
                           Attention:  Thomas R. Denison, Esq.

                           and

                           Liskow & Lewis
                           822 Harding Street
                           Lafayette, Louisiana  70503
                           Attention:  Billy J. Domingue, Esq.

                  If to Sellers:

                           Randy Paul Deroche, Sr.
                           4033 Highway 24
                           Bourg, Louisiana 70343

                  With copies to:

                           Duvall, Funderburk, Sundberg, Lovell, & Watkins
                           101 Wilson Avenue
                           Houma, LA  70364
                           Attention: Berwick Duvall, Esq.

                                     EX-274
<PAGE>

     9.2.   ASSIGNABILITY AND PARTIES IN INTEREST.

            Buyer may freely assign the rights and obligations under this
     Agreement. Sellers may, with the written consent of Buyer (which will not
     be unreasonably withheld if such assignee has the financial capacity to
     assume and honor the indemnity obligations hereunder), assign the rights
     and obligations under this Agreement among their affiliates or in
     connection with a sale of their business. In either case, any such assignee
     must expressly assume all indemnity obligations hereunder. This Agreement
     shall inure to the benefit of and be binding upon Buyer and Sellers and
     their respective permitted successors and assigns.

     9.3.   GOVERNING LAW.

            THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
     ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS
     MADE AND TO BE PERFORMED ENTIRELY WITHIN THAT STATE.

     9.4.   COUNTERPARTS.

            This Agreement may be executed simultaneously in one or more
     counterparts, each of which shall be deemed an original, but all of which
     shall constitute but one and the same instrument.

     9.5.   INDEMNIFICATION FOR BROKERAGE.

            Buyer and Sellers each represent and warrant that, except as set
     forth in Schedule 9.5, no broker or finder has acted on its behalf in
     connection with this Agreement or the transactions contemplated hereby. In
     addition to the indemnification obligations contained in Section 6., each
     party hereto agrees to indemnify and hold harmless the others from any
     claim or demand for commissions or other compensation by any broker, finder
     or similar agent who is or claims to have been employed by or on behalf of
     such party.

                                     EX-275
<PAGE>

     9.6.   PUBLICITY.

            Sellers and Buyer agree that press releases and other announcements
     to be made by any of them with respect to the transactions contemplated
     hereby shall be subject to mutual agreement. Notwithstanding the foregoing,
     Sellers and Buyer may respond to inquiries relating to this Agreement and
     the transactions contemplated hereby by the press, securities analysts,
     employees, or customers without any notice or further consent of the other
     parties hereto.

     9.7.   COMPLETE AGREEMENT.

            This Agreement, the Exhibits hereto, the Schedules and the documents
     delivered pursuant to this Agreement contain or will contain the entire
     agreement between the parties hereto with respect to the transactions
     contemplated herein and shall supersede all previous oral and written and
     all contemporaneous oral negotiations, commitments, and understandings.

     9.8.   INTERPRETATION.

            The headings contained in this Agreement are for reference purposes
     only and shall not affect in any way the meaning or interpretation of this
     Agreement.

     9.9.   SEVERABILITY.

            Any provision of this Agreement which is invalid, illegal, or
     unenforceable in any jurisdiction shall, as to that jurisdiction, be
     ineffective to the extent of such invalidity, illegality, or
     unenforceability, without affecting in any way the remaining provisions
     hereof in such jurisdiction or rendering that or any other provision of
     this Agreement invalid, illegal, or unenforceable in any other
     jurisdiction.

                                     EX-276
<PAGE>

     9.10.  KNOWLEDGE: DUE DILIGENCE INVESTIGATION.

            All representations and warranties contained herein which are made
     to the knowledge of Sellers shall mean to the knowledge of Sellers based
     on, and assuming they had conducted, a reasonable investigation of such
     matters.

     9.11.  EXPENSES OF TRANSACTIONS.

            All fees, costs and expenses incurred by Buyer or Sellers in
     connection with the transactions contemplated by this Agreement shall be
     borne by the party incurring the same.

     9.12.  LIMIT ON INTEREST.

            Notwithstanding anything in this Agreement to the contrary, neither
     party hereto shall be obligated to pay interest at a rate higher than the
     maximum rate permitted by applicable law.

     9.13.  SUBMISSION TO JURISDICTION.

            Each of the parties hereto irrevocably consents that any legal
     action or proceeding against it or any of its property with respect to this
     Agreement or any other agreement executed in connection herewith may be
     brought in any court of the State of Louisiana, any Federal court of the
     United States of America located in Louisiana, and by the execution and
     delivery of this Agreement each party hereto hereby accepts with regard to
     any such action or proceeding for itself and in respect of its property,
     generally and unconditionally, the jurisdiction of the aforesaid courts.

     9.14.  ARBITRATION.

            Any controversy, dispute, or claim arising out of, in connection
     with, or in relation to, the interpretation, performance or breach of this
     Agreement, including, without limitation, the validity, scope, and
     enforceability of this Section 9.14., may at the election of Buyer or
     Sellers be solely and finally settled by confidential arbitration conducted
     in New Orleans, Louisiana. The arbitration shall be governed by the Federal
     Arbitration Act, 9 U.S.C. ss.1 et seq., and administereD by the American
     Arbitration Association in accordance with its Commercial Arbitration
     Rules. The arbitrators shall not be allowed to award punitive, exemplary or
     multiple damages. The arbitrators may only award compensatory damages. The
     parties hereby expressly waive any right any of them may have to punitive,
     exemplary or multiple damages.

                                     EX-277
<PAGE>

     The parties intend that this agreement to arbitrate be valid, enforceable
     and irrevocable. Notwithstanding the foregoing, this Section 9.14. shall
     not apply nor be interpreted to affect the resolution of a Dispute Notice
     through the arbitration procedures set forth in Section 2.3.4. of this
     Agreement.

     9.15.  WAIVER OF PUNITIVE, EXEMPLARY AND MULTIPLE DAMAGES.

            The parties hereby expressly waive any right any of them may have to
     punitive, exemplary or multiple damages.

            IN WITNESS WHEREOF, the undersigned duly execute this Agreement as
of the date first written above.

                                        SELLERS:

                                        RANDY PAUL DEROCHE, SR.,
                                        AS TRUSTEE FOR THE
                                        DEROCHE FAMILY TRUST

                                        By: /s/ RANDY PAUL DEROCHE, SR.
                                           -------------------------------------
                                             Randy Paul Deroche, Sr., as
                                             Trustee

                                        /s/ RANDY PAUL DEROCHE, SR.
                                        ------------------------------
                                        RANDY PAUL DEROCHE, SR.

                                        /s/ MICHAEL ANTHONY DEROCHE
                                        ------------------------------
                                        MICHAEL ANTHONY DEROCHE

                                     EX-278
<PAGE>

                                        /s/ DARREN J. DEROCHE
                                        ------------------------------
                                        DARREN J. DEROCHE

                                        /s/ CHRISTOPHER J. DUBOIS
                                        ------------------------------
                                        CHRISTOPHER J. DUBOIS

                                        /s/ HANSEN NELTON, JR.
                                        ------------------------------
                                        HANSEN NELTON, JR.

                                        /s/ TIMOTHY P. DEROCHE
                                        ------------------------------
                                        TIMOTHY P. DEROCHE

                                        /s/ WAYNE A. BASCLE
                                        ------------------------------
                                        WAYNE A. BASCLE

                                        /s/ TIMOTHY J. LEDET
                                        ------------------------------
                                        TIMOTHY J. LEDET

                                        /s/ STEVEN A. LABAT
                                        ------------------------------
                                        STEVEN A. LABAT

                                        /s/ BENJAMIN D. DEROCHE
                                        ------------------------------
                                        BENJAMIN D. DEROCHE

                                        /s/ JOSEPH F. RAMIREZ
                                        ------------------------------
                                        JOSEPH F. RAMIREZ

                                        /s/ DARLENE DEROCHE RAMIREZ
                                        ------------------------------
                                        DARLENE DEROCHE RAMIREZ

                                     EX-279
<PAGE>

                                        BUYER:

                                        T-3 ENERGY SERVICES,
                                        INC., a Delaware corporation

                                        By: /s/ MICHAEL L. STANSBERRY
                                           -------------------------------------
                                              Michael L. Stansberry
                                              Title:  President

                                     EX-280<PAGE>

                                                                    EXHIBIT 4(c)

                        NINTH AMENDMENT TO LOAN AGREEMENT

         THIS NINTH AMENDMENT TO LOAN AGREEMENT (this "Ninth Amendment") is made
and entered into as of the 21st day of March, 2002, by and among SERVICE
TRANSPORT COMPANY, a Texas corporation ("Service Transport Company"), ADAMS
RESOURCES EXPLORATION CORPORATION, a Delaware corporation ("Exploration"),
BUCKLEY MINING CORPORATION, a Kentucky corporation ("Buckley Mining"), CJC
LEASING, INC., a Kentucky corporation ("CJC"), CLASSIC COAL CORPORATION, a
Delaware corporation ("Classic Coal"), ADA MINING CORPORATION, a Texas
corporation ("Ada Mining"), ADA RESOURCES, INC., a Texas corporation ("Ada
Resources"), and BAYOU CITY PIPELINES, INC., a Texas corporation formerly known
as Bayou City Barge Lines, Inc. ("Bayou City"), each with offices and place of
business at 5 Post Oak Place, 4400 Post Oak Parkway, 27th Floor, Houston, Texas
77027 (Service Transport Company, Exploration, Buckley Mining, CJC, Classic
Coal, Ada Mining and Bayou City are hereinafter individually called a "Borrower"
and collectively called the "Borrowers"), and BANK OF AMERICA, N.A., a national
banking association (the "Lender"), successor in interest by merger to
NationsBank, N.A. ("NationsBank"), which had changed its name to Bank of
America, N.A., and which was the successor in interest by merger to NationsBank
of Texas, N.A. (the "Original Lender").

         WHEREAS, the Borrowers and Ada Crude Oil Company ("Ada Crude Oil")
(collectively referred to as the "Original Borrowers") and the Original Lender
entered into that certain Loan Agreement dated October 27, 1993, which Loan
Agreement was amended by that certain First Amendment to Loan Agreement dated
October 27, 1994 among the Original Borrowers and the Original Lender, that
certain Second Amendment to Loan Agreement dated December 29, 1995 among the
Original Borrowers and the Original Lender, that certain Third Amendment to Loan
Agreement dated January 27, 1997 among the Original Borrowers and the Original
Lender and that certain Fourth Amendment to Loan Agreement (the "Fourth
Amendment") dated September 30, 1997 among the Original Borrowers and the
Original Lender (as amended, the "Original Loan Agreement"); and

         WHEREAS, the Borrowers (other than Ada Resources) and NationsBank
entered into that certain Fifth Amendment to Loan Agreement dated February 2,
1999, and the Borrowers (other than Ada Resources) and Lender entered into that
certain Sixth Amendment to Loan Agreement dated October 29, 1999; and

         WHEREAS, the Borrowers and the Lender entered into that certain Seventh
Amendment to Loan Agreement dated March 22, 2000 (the "Seventh Amendment") and
that certain Eighth Amendment to Loan Agreement dated October 27, 2000 (the
"Eighth Amendment") (the Original Loan Agreement, as amended by the Fifth
Amendment, the Sixth Amendment, the Seventh Amendment and the Eighth Amendment,
is referred to herein as the "Loan Agreement"); and

         WHEREAS, due to the assignment of the assets and assumption of
liabilities of Ada Crude Oil, it is no longer a party under the Loan Agreement;
and

         WHEREAS, the Borrowers and the Lender desire to make certain amendments
to the terms and provisions of the Loan Agreement, as set forth herein.

         NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual covenants and
agreements contained herein, the parties hereto agree as follows:

         1. The definition of "Adjusted Base Rate" in Section 1.2(a) of the Loan
Agreement is deleted in its entirety, and the following is substituted in its
place:

<PAGE>

                  "Adjusted Base Rate" shall mean the Base Rate minus one-half
         percent (1/2%) per annum.

         2. The definition of "Adjusted LIBOR Rate" in Section 1.2(a) of the
Loan Agreement is deleted in its entirety, and the following is substituted in
its place:

                  "Adjusted LIBOR Rate" shall mean the LIBOR Rate plus two and
         three-quarters percent (2-3/4%) per annum.

         3. Notwithstanding any other provision to the contrary in the Loan
Agreement, unless, as of the effective date of the most recent Certificate of
Compliance delivered to the Lender, the Guarantor's consolidated Interest
Coverage Ratio is at least 3.0 to 1.0 for the preceding twelve (12) months, both
the Adjusted Base Rate and the Adjusted LIBOR Rate shall be one-fourth of one
percent (1/4%) per annum higher than otherwise provided herein until delivery by
the Guarantor to the Lender of a subsequent Certificate of Compliance indicating
that, as of the effective date thereof, the Guarantor's consolidated Interest
Coverage Ratio is at least 3.0 to 1.0 for the preceding twelve (12) months.

         4. There is added to Section 1.2 of the Loan Agreement a definition of
"Permitted Intercompany Investments and Advances", which shall read as follows:

                  "Permitted Intercompany Investments and Advances" shall mean,
         collectively, (i) the equity investments of the Guarantor in its
         Subsidiaries as of December 31, 2001, which the Borrowers represent and
         warrant to Lender have a fair value as of such date of approximately
         $10,700,000.00, and (ii) up to an additional $4,500,000.00 of Debt
         payable by Guarantor or any Subsidiary of Guarantor to Guarantor or any
         Subsidiary of Guarantor.

         5. The first sentence of Section 1.3(a) of the Loan Agreement is
deleted in its entirety, and the following is substituted in its place:

         The Lender, during the period from the date of the Ninth Amendment
         through October 29, 2003, subject to the terms and conditions of this
         Agreement, agrees (i) to make loans to the Borrowers pursuant to a
         revolving credit and term loan facility up to but not in excess of the
         lesser of $10,000,000.00 or the amount of the Tranche A Borrowing Base
         and (ii) to make additional loans to the Borrowers pursuant to a
         revolving credit and term loan facility up to but not in excess of the
         lesser of $7,500,000.00 or the amount of the Tranche B Borrowing Base.

         6. The fourth and fifth sentences of Section 1.3(b) of the Loan
Agreement are deleted in their entirety, and the following is substituted in
their place:

         Commencing October 31, 2003, a principal payment shall made on each
         Note on the last day of each October, January, April and July in an
         amount equal to one-twelfth (1/12th) of the principal amount
         outstanding under such Note at the close of Lender's business on
         October 29, 2003. All unpaid principal and accrued and unpaid interest
         on the Notes shall be due and payable on or before October 29, 2006.

         7. There is added to the end of Section 4.1 of the Loan Agreement the
following:

         In addition to the foregoing, the Guarantor and its Subsidiaries shall
         be entitled to make Permitted Intercompany Investments and Advances.
         Any payee of any Permitted Intercompany Investment and Advance shall be
         entitled to subordinate its right to payment owed to it by any
         Subsidiary (other than a Borrower) so long as the subordination
         agreement evidencing such subordination

                                       2
<PAGE>

         permits payment of such Permitted Intercompany Investment and Advance
         so long as there is no event of default (after the passage of any
         applicable notice and cure period) in the documents evidencing the
         indebtedness of such Subsidiary to the lender (the "Senior Lender")
         requesting such subordination agreement.

         8. Clauses (b), (c) and (d) of Section 4.3 of the Loan Agreement are
deleted in their entirety, and the following is substituted in their place:

         (b) the Guarantor and its Subsidiaries may make Permitted Intercompany
         Investments and Advances, and (c) the Guarantor may make the loan
         permitted by the terms of Section 4.8 of this Agreement.

         9. Section 4.7(a) of the Loan Agreement is deleted in its entirety, and
the following is substituted in its place:

                  (a) their and the Guarantor's consolidated Net Worth to be
         less than the sum of (i) $31,357,000.00 plus (ii) fifty percent (50%)
         of the positive consolidated net income of the Guarantor and the
         Borrowers during each fiscal year, commencing with the fiscal year
         ending December 31, 2002, plus (iii) seventy-five percent (75%) of the
         net amount received by the Guarantor upon any sale, issuance or
         exchange by the Guarantor of any of its capital stock or rights to
         acquire such capital stock;

         10. Section 4.7(d) of the Loan Agreement is deleted in its entirety,
and the following is substituted in its place:

                  (d) their and the Guarantor's consolidated Interest Coverage
         Ratio to be less than 2.0 to 1.0 as of June 30, 2002, or any time prior
         to such date, to be less than 2.5 to 1.0 as of September 30, 2002, or
         to be less than 3.0 to 1.0 as of December 31, 2002 or any time
         thereafter.

         11. There is added to the end of Section 4.7 of the Loan Agreement the
following paragraph:

         Notwithstanding the definition of "Interest Coverage Ratio", for
         purposes of the calculation of Guarantor's consolidated Interest
         Coverage Ratio (1) for the period ended March 31, 2002, such
         calculation shall be made using net income before interest expense and
         taxes, and interest expense, including interest which may be required
         to be capitalized, for the month of March, 2002, (2) for the period
         ending June 30, 2002, such calculation shall be made using net income
         before interest expense and taxes, and the interest expense, including
         interest which may be required to be capitalized, for the preceding six
         (6) months, and (3) for the period ending September 30, 2002, such
         calculation shall be made using net income before interest expense and
         taxes, and interest expense, including interest which may be required
         to be capitalized, for the preceding nine (9) months. Commencing with
         respect to the period ended December 31, 2002, such covenant shall be
         calculated utilizing the definition of "Interest Coverage Ratio" set
         forth in this Agreement.

         12. There is added to Section 5.1 of the Loan Agreement an additional
Event of Default, which shall be added as Section 5.1(i) and which shall read as
follows:

                  (i) the occurrence of any event of default (after the passage
         of any applicable notice and cure period) under any document evidencing
         the indebtedness of any Subsidiary to a Senior Lender.

                                       3
<PAGE>

         13. The Borrowers and Lender hereby agree that, from and after the date
of this Ninth Amendment, the Tranche A Borrowing Base shall be $4,000,000.00,
until the time of the next redetermination thereof pursuant to the terms of the
Loan Agreement.

         14. The Borrowers have requested certain waivers under the Loan
Agreement and, subject to the following terms and conditions, the Lender has
agreed to make such waivers. The Borrowers represent to the Lender that advances
in the aggregate approximate amount of $27,273,147 were made by Gulfmark to the
Guarantor and then subsequently advanced by the Guarantor to or for the benefit
of Adams Resources Marketing, Ltd. To the extent such advances by the Guarantor
would be deemed to be loans in or advances made by the Guarantor to a Subsidiary
other than a Borrower, the same may have resulted in a violation of Section 4.1
of the Loan Agreement. To the extent such violation occurred, the Lender hereby
agrees to waive the requirements of Section 4.1 of the Loan Agreement with
respect to such transactions. This waiver is applicable only to the loans and
advances described in this paragraph and does not waive the requirements of
Section 4.1 of the Loan Agreement with respect to any other transaction. Lender
further agrees to waive the Borrowers' non-compliance with the requirements of
Section 4.7(d) of the Loan Agreement with respect to the period ended December
31, 2001. This waiver is applicable only to such period and does not waive the
requirements of Section 4.7(d) of the Loan Agreement with respect to any other
period.

         15. The closing of the transactions contemplated by this Ninth
Amendment is subject to the satisfaction of the following conditions:

                  (a) All legal matters incident to the transactions herein
         contemplated shall be satisfactory to Gardere Wynne Sewell LLP, counsel
         to the Lender;

                  (b) The Lender shall have received a fully executed copy of
         this Ninth Amendment and a Notice as to Written Agreement; and

                  (c) The Lender shall have received an executed copy of
         resolutions of the Board of Directors of each of the Borrowers and the
         Guarantor, in form and substance satisfactory to the Lender,
         authorizing the execution, delivery and performance of this Ninth
         Amendment and all documents, instruments and certificates referred to
         herein.

         16. Each of the Borrowers hereby reaffirms each of its representations,
warranties, covenants and agreements set forth in the Loan Agreement with the
same force and effect as if each were separately stated herein and made as of
the date hereof. Except as amended hereby, the Loan Agreement shall remain
unchanged, and the terms, conditions and covenants of the Loan Agreement shall
continue and be binding upon the parties hereto.

         17. Each of the Borrowers hereby agrees that its liability under any
and all documents and instruments executed by it as security for the
Indebtedness (including, without limitation, the Mortgages, the Security
Agreements, the Collateral Assignment and the Pledges) shall not be reduced,
altered, limited, lessened or in any way affected by the execution and delivery
of this Ninth Amendment or any of the instruments or documents referred to
herein, except as specifically set forth herein or therein, that all of such
documents and instruments are hereby renewed, extended, ratified, confirmed and
carried forward by the Borrowers in all respects, that all of such documents and
instruments shall remain in full force and effect and are and shall remain
enforceable against the Borrowers in accordance with their terms and that all of
such documents and instruments shall cover all indebtedness of the Borrowers to
the Lender described in the Loan Agreement as amended hereby.

                                       4
<PAGE>

         18. Each of the terms defined in the Loan Agreement is used in this
Ninth Amendment with the same meaning, except as otherwise indicated in this
Ninth Amendment. Each of the terms defined in this Ninth Amendment is used in
the Loan Agreement with the same meaning, except as otherwise indicated in the
Loan Agreement.

         19. THIS NINTH AMENDMENT SHALL BE DEEMED TO BE A CONTRACT UNDER,
SUBJECT TO, AND SHALL BE CONSTRUED FOR ALL PURPOSES IN ACCORDANCE WITH THE LAWS
OF THE STATE OF TEXAS.

         20. THE LOAN AGREEMENT, AS AMENDED, REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

         THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         IN WITNESS WHEREOF, the parties have caused this Ninth Amendment to be
executed by their duly authorized officers as of the day and year first above
written.

                                       SERVICE TRANSPORT COMPANY

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

                                       ADAMS RESOURCES EXPLORATION
                                       CORPORATION

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

                                       BUCKLEY MINING CORPORATION

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

                                       CJC LEASING, INC.

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

                                       5
<PAGE>

                                       CLASSIC COAL CORPORATION

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

                                       ADA MINING CORPORATION

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

                                       ADA RESOURCES, INC.

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

                                       BAYOU CITY PIPELINES, INC.

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

                                       BANK OF AMERICA, N.A.

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

                                       6
<PAGE>

         Guarantor joins in the execution of this Ninth Amendment to evidence
that it hereby agrees and consents to all of the matters contained in this Ninth
Amendment and further agrees that (i) its liability under that certain Guaranty
Agreement dated October 27, 1993, executed by Guarantor for the benefit of the
Lender, as the same may be amended or modified from time to time (the
"Guaranty") shall not be reduced, altered, limited, lessened or in any way
affected by the execution and delivery of this Ninth Amendment or any of the
instruments or documents referred to herein by the parties hereto, except as
specifically set forth herein or therein, (ii) the Guaranty is hereby renewed,
extended, ratified, confirmed and carried forward in all respects, (iii) the
Guaranty is and shall remain in full force and effect and is and shall remain
enforceable against Guarantor in accordance with its terms and (iv) the Guaranty
shall cover all indebtedness of the Borrowers to the Lender described in the
Loan Agreement as amended hereby.

                                       ADAMS RESOURCES & ENERGY, INC.

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

                                       7

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