Document:

exv10w1

Exhibit 10.1

NINTH AMENDMENT TO CREDIT AGREEMENT

     THIS NINTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of June 30, 2010
to the Credit Agreement referenced below is by and among HURON CONSULTING GROUP INC., as Company,
the Guarantors, the Lenders party hereto, BANK OF AMERICA, N.A., in its capacity as issuing lender
(in such capacity, the “Issuing Lender”) and BANK OF AMERICA, N.A., as Administrative Agent
(in such capacity, the “Administrative Agent”).

WITNESSETH

     WHEREAS, a $240 million revolving credit facility and a $220 million term loan have been made
available to the Company pursuant to that certain Credit Agreement dated as of June 7, 2006 (as
amended and modified, including by the First Amendment dated as of December 29, 2006, the Second
Amendment dated as of February 23, 2007, the Third Amendment dated as of May 25, 2007, the Fourth
Amendment dated as of July 27, 2007, the Fifth Amendment dated as of April 1, 2008, the Sixth
Amendment dated as of July 8, 2008, the Seventh Amendment dated September 30, 2008 and the Eighth
Amendment dated September 30, 2009, the “Credit Agreement”) among the Company, the
Guarantors identified therein, the Lenders identified therein and the Administrative Agent;

     WHEREAS, the Company and certain Lenders have requested certain modifications of the Credit
Agreement; and

     WHEREAS, the Lenders, by act of the Required Lenders and the Issuing Lender, have agreed to
the requested modifications of the Credit Agreement on the terms and conditions set forth herein.

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Defined Terms. Capitalized terms used herein but not otherwise defined herein
shall have the meanings assigned to such terms in the Credit Agreement.

     2. Amendments to Credit Agreement.

     2.1 Amended Definitions. The following defined terms are amended or added to Section
1.1, as appropriate, to read as follows:

     Alternative Currency means each of Euro, Saudi Riyal, Sterling, Yen and each other
currency (other than Dollars) that is approved in accordance with Section 1.5.

     Alternative Currency Equivalent means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as
determined by the Administrative Agent or the Issuing Lender, as the case may be, at such time on
the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the
purchase of such Alternative Currency with Dollars.

     Alternative Currency Sublimit means an amount equal to $5,000,000. The Alternative
Currency Sublimit is part of, and not in addition to, the Letter of Credit Sublimit.

     Amendment No. 9 Effectiveness Date means June 30, 2010.

 

 

     Applicable Margin means, for any day, the rate per annum set forth below opposite the
level (the “Level”) then in effect, it being understood that the Applicable Margin for (i)
LIBOR Loans shall be the percentage set forth under the column “LIBOR Margin”, (ii) Base Rate Loans
shall be the percentage set forth under the column “Base Rate Margin”, (iii) the Non- Use Fee Rate
shall be the percentage set forth under the column “Non-Use Fee Rate” and (iv) the L/C Fee shall be
the percentage set forth under the column “L/C Fee Rate”:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	LIBOR	 	Base Rate	 	Non-Use	 	L/C Fee
	Level	 	Consolidated Leverage Ratio	 	Margin	 	Margin	 	Fee Rate	 	Rate
	 	I	 	 	Greater than 2.50:1
	 	325.0 bps	 	225.0 bps	 	50.0 bps	 	325.0 bps
	 	II	 	 	Greater than 2.00:1 but
less than or equal to
2.50:1
	 	300.0 bps	 	200.0 bps	 	50.0 bps	 	300.0 bps
	III	 	Greater than 1.50:1 but
less than or equal to
2.00:1
	 	275.0 bps	 	175.0 bps	 	50.0 bps	 	275.0 bps
	IV	 	Greater than 1.00:1 but
less than or equal to
1.50:1
	 	250.0 bps	 	150.0 bps	 	50.0 bps	 	250.0 bps
	 	V	 	 	Less than or equal to 1.00:1
	 	225.0 bps	 	125.0 bps	 	50.0 bps	 	225.0 bps

     Any increase or decrease in the Applicable Margin resulting from a change in the
Consolidated Leverage Ratio shall become effective not later than the date five (5) Business Days
immediately following the date a Compliance Certificate is delivered pursuant to Section
10.1.3; provided, however, that if a Compliance Certificate is not delivered when due
in accordance therewith, then, upon the request of the Required Lenders, Pricing Level I shall
apply as of the first Business Day after the date on which such Compliance Certificate was required
to have been delivered and shall remain in effect until the date on which such Compliance
Certificate is delivered. Notwithstanding the foregoing, the Applicable Margin in effect from the
Amendment No. 9 Effectiveness Date through the date for delivery of the annual Compliance
Certificate for the Fiscal Quarter and Fiscal Year ending December 31, 2010 shall be as shown
below:

	 	 	 	 	 	 	 
	LIBOR Margin	 	Base Rate Margin	 	Non-Use Fee	 	L/C Fee Rate
	350.0 bps

	 	250.0 bps
	 	50.0 bps
	 	350.0 bps

Determinations by the Administrative Agent of the appropriate Pricing Level shall be conclusive
absent manifest error. Notwithstanding anything to the contrary contained in this definition, the
determination of the Applicable Rate for any period shall be subject to the provisions of
Section 1.3(b).

     Applicable Time means, with respect to any borrowings and payments in any Alternative
Currency, the local time in the place of settlement for such Alternative Currency as may be
determined by the Administrative Agent or the Issuing Lender, as the case may be, to be necessary
for timely settlement on the relevant date in accordance with normal banking procedures in the
place of payment.

     Consolidated EBITDA means, for any period for the Company and its Subsidiaries, the
sum of (a) Consolidated Net Income, plus, (b) to the extent deducted in determining such
Consolidated Net Income, (i) Consolidated Interest Expense, plus (ii) taxes, plus
(iii) depreciation and amortization, plus (iv) non-cash stock compensation expense
(including Statement of Financial Accounting Standards No. 123 (Revised) impact), plus (v)
in the case of non-cash goodwill impairment charges and all other

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acquisition-related intangible
asset impairment charges (A) all such charges taken in the Fiscal Quarter ending September 30, 2009
and (B) thereafter, all such charges (excluding charges under the foregoing clause (A) above) taken
as of the end of any Fiscal Quarter for the period of four consecutive Fiscal Quarters then ending,
in an amount up to the lesser of $30,000,000 and an amount equal to fifteen percent (15%) of
Consolidated Net Worth at the end of the Fiscal Quarter immediately preceding the date of the
charge and before giving effect to any such charges, plus (vi) non-cash charges (and
subtraction of any non-cash gains) resulting from the quarterly valuation of acquisition-related earn-outs and
any other contingent assets and liabilities pursuant to Statement of Financial Accounting Standards
No. 141 (Revised) as it relates to acquisitions completed subsequent to January 1, 2009,
plus (vii) for the periods ending up to and including September 30, 2009, non-cash
compensation charges resulting from acquisition-related payments that are subsequently
redistributed by selling shareholders among themselves and to other Company employees based, in
part, on continuing employment with the Company or the achievement of personal performance
measures, in each case determined on a consolidated basis in accordance with GAAP, plus (c)
for the periods ending prior to June 30, 2009, the Stockamp Accounting Adjustments, plus
(d) for periods ending up to and including June 30, 2010, charges resulting from the settlement of
the St. Vincent litigation in an aggregate amount up to $5,000,000, plus (e) for periods
ending up to and including December 31, 2011, charges resulting from the restatement of the
Company’s financial statements for Fiscal Years 2006, 2007, 2008 and 2009, net of insurance
proceeds and other amounts recouped in connection therewith, up to $17,100,000 in Fiscal Year 2009,
up to $10,000,000 in Fiscal Year 2010 and up to $3,000,000 for Fiscal Year 2011, as shown below:

	 	 	 
	Fiscal Quarter Ending	 	Amount
	September 30, 2009

	 	$13,000,000
	December 31, 2009

	 	$4,100,000
	March 31, 2010

	 	$800,000
	June 30, 2010

	 	Up to $9,200,000
	September 30, 2010

	 	Up to $9,200,000 less amount taken in Fiscal Quarter ending June 30, 2010
	December 31, 2010

	 	Up to $9,200,000 less amounts taken in Fiscal Quarters ending June 30, 2010 and September
30, 2010
	March 31, 2011

	 	Up to $3,000,000
	June 30, 2011

	 	Up to $3,000,000 less amount taken in Fiscal Quarter ending March 31, 2011
	September 30, 2011

	 	Up to $3,000,000 less amount taken in Fiscal Quarters ending March 31, 2011 and June 30, 2011
	December 31, 2011

	 	Up to $3,000,000 less amount taken in Fiscal Quarters ending March 31, 2011, June 30, 2011
and September 30, 2011

     plus (f) non-cash restructuring charges taken in any period, provided that
“Consolidated EBITDA” will be reduced in any subsequent period to the extent that cash payment is
made in respect thereof. Except as otherwise expressly provided, the applicable period shall be
the four (4) consecutive Fiscal Quarters ending as of the date of determination.

     Dollar Equivalent means, at any time, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency,
the equivalent amount thereof in Dollars as determined by the Administrative Agent or the Issuing
Lender, as the case may be, at such time on the basis of the Spot Rate (determined in respect of
the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency.

     EMU means the economic and monetary union in accordance with the Treaty of Rome 1957,
as

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amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam Treaty
of 1998.

     EMU Legislation means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European currency.

     Euro and EUR mean the lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation.

     Existing Letters of Credit means the letters of credit outstanding on the Amendment
No. 9 Effectiveness Date and identified on Schedule 2.3.

     Letter of Credit means any standby letter of credit issued hereunder and shall include
the Existing Letters of Credit. Letters of Credit may be issued in Dollars or in an Alternative
Currency.

     Revaluation Date means with respect to any Letter of Credit, each of the following:
(a) each date of issuance of a Letter of Credit denominated in an Alternative Currency, (b) each
date of an amendment of any such Letter of Credit having the effect of increasing the amount
thereof (solely with respect to the increased amount), (c) each date of any payment by the Issuing
Lender under any Letter of Credit denominated in an Alternative Currency, (d) in the case of the
Existing Letters of Credit, June 30, 2010, and (e) such additional dates as the Administrative
Agent or the Issuing Lender shall determine or the Required Lenders shall require.

     Saudi Riyal or SR means the lawful currency of Saudi Arabia.

     Spot Rate for a currency means the rate determined by the Administrative Agent or the
Issuing Lender, as applicable, to be the rate quoted by the Person acting in such capacity as the
spot rate for the purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 11:00 a.m., Chicago time, on the date
two (2) Business Days prior to the date as of which the foreign exchange computation is made;
provided that the Administrative Agent or the Issuing Lender may obtain such spot rate from another
financial institution designated by the Administrative Agent or the Issuing Lender if the Person
acting in such capacity does not have as of the date of determination a spot buying rate for any
such currency; and provided further that the Issuing Lender may use such spot rate quoted on the
date as of which the foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency.

     Stated Amount means, with respect to any Letter of Credit at any date of
determination, (a) the Dollar Equivalent of the maximum aggregate amount available for drawing
thereunder under any and all circumstances plus (b) the Dollar Equivalent of the aggregate amount
of all unreimbursed payments and disbursements under such Letter of Credit.

     Sterling and £ mean the lawful currency of the United Kingdom.

     Yen and ¥ mean the lawful currency of Japan.

     2.2 Additional Alternative Currencies for Letters of Credit. A new Section 1.5 is
added to the Credit Agreement to read as follows:

     1.5 Additional Alternative Currencies.

     (a) The Company may from time to time request that Letters of Credit be issued in a

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currency other than those specifically listed in the definition of “Alternative Currency;”
provided that such requested currency is a lawful currency (other than Dollars) that
is readily available and freely transferable and convertible into Dollars. Any such request
shall be subject to the approval of the Administrative Agent and the Issuing Lender.

     (b) Any such request shall be made to the Administrative Agent not later than 11:00
a.m., Chicago time, twenty (20) Business Days prior to the date of the desired Letter of
Credit issuance (or such other time or date as may be agreed by the Administrative Agent and
the Issuing Lender in their sole discretion). In the case of any such request pertaining to
Letters of Credit, the Administrative Agent shall promptly notify the Issuing Lender
thereof. The Issuing Lender shall notify the Administrative Agent, not later than 11:00
a.m., Chicago time, ten (10)
Business Days after receipt of such request whether it consents, in its sole
discretion, to the issuance of Letters of Credit in such requested currency.

     (c) Any failure by the Issuing Lender to respond to such request within the time period
specified in the preceding sentence shall be deemed to be a refusal by the Issuing Lender to
permit Letters of Credit to be issued in such requested currency. If the Administrative
Agent and the Issuing Lender consent to the issuance of Letters of Credit in such requested
currency, the Administrative Agent shall so notify the Company and such currency shall
thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of
any Letter of Credit issuances. If the Administrative Agent shall fail to obtain consent to
any request for an additional currency under this Section 1.5, the Administrative
Agent shall promptly so notify the Company. Any specified currency of an Existing Letter of
Credit that is neither Dollars nor one of the Alternative Currencies specifically listed in
the definition of “Alternative Currency” shall be deemed an Alternative Currency with
respect to such Existing Letter of Credit only.

     2.3 Change of Currency. A new Section 1.6 is added to the Credit Agreement to read as
follows:

     1.6 Change of Currency.

     (a) Each obligation of the Borrowers to make a payment denominated in the national
currency unit of any member state of the European Union that adopts the Euro as its lawful
currency after the date hereof shall be redenominated into Euro at the time of such adoption
(in accordance with the EMU Legislation). If, in relation to the currency of any such
member state, the basis of accrual of interest expressed in this Agreement in respect of
that currency shall be inconsistent with any convention or practice in the London interbank
market for the basis of accrual of interest in respect of the Euro, such expressed basis
shall be replaced by such convention or practice with effect from the date on which such
member state adopts the Euro as its lawful currency.

     (b) Each provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to
reflect the adoption of the Euro by any member state of the European Union and any relevant
market conventions or practices relating to the Euro.

     (c) Each provision of this Agreement also shall be subject to such reasonable changes
of construction as the Administrative Agent may from time to time specify to be appropriate
to reflect a change in currency of any other country and any relevant market conventions or
practices relating to the change in currency.

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     2.4 Exchange Rates; Currency Equivalents. A new Section 1.7 is added to the Credit
Agreement to read as follows:

     1.7 Exchange Rates; Currency Equivalents.

     (a) The Administrative Agent or the Issuing Lender, as applicable, shall determine the
Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts
of the Stated Amount of any Letters of Credit denominated in Alternative Currencies. Such
Spot Rates shall become effective as of such Revaluation Date and shall be the Spot Rates
employed in converting any amounts between the applicable currencies until the next
Revaluation Date to occur. Except for purposes of financial statements delivered by Loan
Parties hereunder or
calculating financial covenants hereunder or except as otherwise provided herein, the
applicable amount of any currency (other than Dollars) for purposes of the Loan Documents
shall be such Dollar Equivalent amount as so determined by the Administrative Agent or
Issuing Lender, as applicable.

     (b) Wherever in this Agreement in connection with the issuance, amendment or extension
of a Letter of Credit, an amount, such as a required minimum or multiple amount, is
expressed in Dollars, but such Letter of Credit is denominated in an Alternative Currency,
such amount shall be the relevant Alternative Currency Equivalent of such Dollar amount
(rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit being rounded
upward), as determined by the Administrative Agent or the Issuing Lender, as the case may
be.

     2.5 Letters of Credit. Section 2.1.2 of the Credit Agreement is amended to read as
follows:

     2.1.2 Letter of Credit Commitment. Subject to Section 2.3.1, the
Issuing Lender agrees to issue Letters of Credit denominated in Dollars or in one or more
Alternative Currencies, in each case containing such terms and conditions as are permitted
by this Agreement and are reasonably satisfactory to the Issuing Lender, at the request of
and for the account of the Company from time to time before the scheduled Termination Date
and, as more fully set forth in Section 2.3.2, each Lender agrees to purchase a
participation in each such Letter of Credit; provided that (a) the aggregate Stated
Amount of all Letters of Credit shall not at any time exceed $20,000,000.00 (the “Letter
of Credit Sublimit”), (b) the Revolving Outstandings shall not at any time exceed the
Revolving Loan Availability (less the amount of any Swing Line Loans outstanding at such
time) and (c) the aggregate outstanding amount of all Letters of Credit denominated in
Alternative Currencies shall not exceed the Alternative Currency Sublimit.

     2.6 The third sentence of Section 2.3.1 of the Credit Agreement is amended to insert the text
“the amount and currency thereof,” immediately prior to the text “the expiration date of such
Letter of Credit”.

     2.7 Section 2.3.2 of the Credit Agreement is amended to read as follows:

     2.3.2 Participations in Letters of Credit. Concurrently with the issuance of
each Letter of Credit, the Issuing Lender shall be deemed to have sold and transferred to
each Lender with a Commitment, and each such Lender shall be deemed irrevocably and
unconditionally to have purchased and received from the Issuing Lender, without recourse or
warranty, an undivided interest and participation, to the extent of such Lender’s Pro Rata
Share, in such Letter of Credit and the Company’s reimbursement obligations with respect
thereto. If the Company fails to so reimburse the Issuing Lender by 11:00 a.m., Chicago
time, on the date of any payment by the Issuing Lender under a Letter of Credit to be
reimbursed in Dollars, or the Applicable Time on

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the date of any payment by the Issuing
Lender under a Letter of Credit to be reimbursed in an Alternative Currency, the
Administrative Agent shall promptly notify each Lender of the date and amount of the
unreimbursed drawing (expressed in Dollars in the amount of the Dollar Equivalent thereof in
the case of a Letter of Credit denominated in an Alternative Currency), and the amount of
such Lender’s Pro Rata Share thereof, and the Company shall be deemed to have immediately
requested that the Lenders make a Revolving Loan which is a Base Rate Loan in a principal
amount equal to the Dollar Equivalent of such reimbursement obligations. The Administrative
Agent shall promptly notify such Lenders of such deemed request and, without the necessity
of compliance with the requirements of Section 2.2.2, Section 12.2 or
otherwise, such Lender shall make available to the Administrative Agent its Pro Rata Share
of such Loan. The proceeds of such Loan shall be paid over by the Administrative Agent to
the Issuing Lender for the account of
the Company in satisfaction of such reimbursement obligations. For the purposes of
this Agreement, the unparticipated portion of each Letter of Credit shall be deemed to be
the Issuing Lender’s “participation” therein. The Issuing Lender hereby agrees, upon
request of the Administrative Agent or any Lender, to deliver to the Administrative Agent or
such Lender a list of all outstanding Letters of Credit issued by the Issuing Lender,
together with such information related thereto as the Administrative Agent or such Lender
may reasonably request.

     2.8 Section 2.3.3(a) of the Credit Agreement is amended to read as follows:

     (a) The Company hereby unconditionally and irrevocably agrees to reimburse the Issuing
Lender for each payment or disbursement made by the Issuing Lender under any Letter of
Credit honoring any demand for payment made by the beneficiary thereunder, in each case on
the date that such payment or disbursement is made. In the case of a Letter of Credit
denominated in an Alternative Currency, the Company shall reimburse the Issuing Lender in
such Alternative Currency, unless (A) the Issuing Lender (at its option) shall have
specified in such notice that it will require reimbursement in Dollars, or (B) in the
absence of any such requirement for reimbursement in Dollars, the Company shall have
notified the Issuing Lender promptly following receipt of the notice of drawing that the
Company will reimburse the Issuing Lender in Dollars. In the case of any such reimbursement
in Dollars of a drawing under a Letter of Credit denominated in an Alternative Currency, the
Issuing Lender shall notify the Company of the Dollar Equivalent of the amount of the
drawing promptly following the determination thereof. Not later than 11:00 a.m., Chicago
time, on the date of any payment by the Issuing Lender under a Letter of Credit to be
reimbursed in Dollars, or the Applicable Time on the date of any payment by the Issuing
Lender under a Letter of Credit to be reimbursed in an Alternative Currency, the Company
shall reimburse the Issuing Lender through the Administrative Agent in an amount equal to
the amount of such drawing and in the applicable currency. Any amount not reimbursed on the
date of such payment or disbursement shall bear interest from the date of such payment or
disbursement to the date that the Issuing Lender is reimbursed by the Company therefor,
payable on demand, at a rate per annum equal to the Base Rate from time to time in effect
plus the Base Rate Margin from time to time in effect plus, beginning on the third
Business Day after receipt of notice from the Issuing Lender of such payment or
disbursement, two percent (2%). The Issuing Lender shall notify the Company and the
Administrative Agent whenever any demand for payment is made under any Letter of Credit by
the beneficiary thereunder; provided that the failure of the Issuing Lender to so notify the
Company or the Administrative Agent shall not affect the rights of the Issuing Lender or the
Lenders in any manner whatsoever.

     2.9 The first two sentences of Section 2.3.4 of the Credit Agreement are amended to read as
follows:

     If the Issuing Lender makes any payment or disbursement under any Letter of Credit and

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(a) the Company has not reimbursed the Issuing Lender in full for such payment or
disbursement by 11:00 a.m., Chicago time, on the date of such payment or disbursement, (b) a
Revolving Loan cannot be made in accordance with Section 2.3.2 or (c) any
reimbursement received by the Issuing Lender from the Company is or must be returned or
rescinded upon or during any bankruptcy or reorganization of the Company or otherwise, each
other Lender with a Commitment shall be obligated to pay in Dollars to the Administrative
Agent for the account of the Issuing Lender, in full or partial payment of the purchase
price of its participation in such Letter of Credit, its Pro Rata Share of the Dollar
Equivalent of such payment or disbursement (but no such payment shall diminish the
obligations of the Company under Section 2.3.3), and, upon notice from the Issuing
Lender, the Administrative Agent shall promptly notify each other Lender thereof. Each
other Lender irrevocably and unconditionally agrees to so pay to the
Administrative Agent in immediately available funds in Dollars for the Issuing Lender’s
account the amount of such other Lender’s Pro Rata Share of such payment or disbursement.

     0.10 Schedule of Existing Letters of Credit. The Credit Agreement is amended to
include Schedule 2.1.2 (Existing Letters of Credit) attached hereto as Schedule 2.1.2
(Existing Letters of Credit).

     3. Amendment of Guaranty Agreements. In each of (a) that certain Guaranty Agreement
dated as of June 7, 2006 given by Huron Consulting Services LLC, Huron Consulting Group Holdings
LLC, Wellspring Management Services LLC, formerly known as Speltz & Weis LLC and the other parties
thereto (including pursuant to any joinder to guaranty agreement) and (b) that certain Guaranty
Agreement dated as of July 27, 2007, given by Huron Demand LLC, in each case as amended, restated,
amended and restated, supplemented or otherwise modified from time to time, the definition of
“Company Obligations” in Section 1.2 thereof is amended to read as follows:

     Company Obligations means all Obligations, as defined in the Credit Agreement.

     4. Conditions Precedent. This Amendment shall become effective upon receipt by the
Administrative Agent of each item listed below:

     (a) Executed Amendment. Counterparts to this Amendment from the Required
Lenders, the Administrative Agent, the Issuing Lender, the Company and the other Loan
Parties.

     (b) Opinions of Counsel. Opinions of counsel for each of the Loan Parties, in
scope, form and substance satisfactory to the Administrative Agent and the Required Lenders,
and including, among other things, due authorization, execution and delivery of the this
Amendment and the Security Agreement and the enforceability thereof.

     (c) Organization Documents, Incumbency, Resolutions, Etc. Each of the items
listed below, which shall be originals or facsimiles (followed promptly by originals), in
form and substance satisfactory to the Administrative Agent and the Required Lenders:

     (i) copies of the certificate or articles of incorporation, certificate of
organization, bylaws, limited liability operating agreement or similar constitutive
documents of each Loan Party certified to be true and complete as of a recent date
by the appropriate governmental authority of the state or other jurisdiction of its
incorporation or organization, where applicable, and certified by a secretary or
assistant secretary of such Loan Party to be true and correct as of the date of this
Amendment, unless a Senior Officer of the Company certifies in a certificate that
the constitutive documents previously delivered to the Administrative Agent in
connection with the Credit

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Agreement have not been amended, supplemented or
otherwise modified and remain in full force and effect as of the date hereof;

     (ii) incumbency certificates identifying the Senior Officers and other Persons
of the Loan Parties who are authorized to execute this Amendment and related
documents and to act on behalf of the Loan Parties in connection with this Amendment
and the Loan Documents, unless a Senior Officer of the Company certifies in a
certificate that the incumbency certificates previously delivered to the
Administrative Agent in connection with the Credit Agreement have not been amended,
supplemented or otherwise modified and remain in full force and effect as of the
date hereof;

     (iii) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Senior Officers of each Loan Party as the
Administrative Agent may require evidencing the identity, authority and capacity of
each Senior Officer thereof authorized to act as a Senior Officer in connection with
this Amendment; and

     (iv) such documents and certifications as the Administrative Agent may
reasonably require to evidence that each Loan Party is duly organized or formed, and
is validly existing, and in good standing in its state of organization or formation.

     (d) Fees and Expenses. (a) Payment of all reasonable costs and expenses of the
Administrative Agent, BAS and the Lenders in connection with this Amendment that are due and
payable on the date hereof (including, without limitation, the reasonable fees and expenses
of Moore & Van Allen, PLLC, counsel to the Administrative Agent and BAS), (b) payment for
the account of each Lender that executes this Amendment of an
amendment fee equal to twelve and one-half
basis points (.125%) on the portion of the aggregate outstanding principal amount of the Term
Loan A provided by such Lender plus the Revolving Commitment of such Lender, in each
case after giving effectiveness of this Amendment and (c) payment of all other fees and
expenses required to be paid to the Administrative Agent and BAS on or before the date
hereof.

     5. Representations and Warranties. The Loan Parties hereby affirm the following:

     (a) all action necessary to authorize the execution, delivery and performance of this
Amendment has been taken;

     (b) after giving effect to this Amendment, the representations and warranties set forth
in the Credit Agreement and the other Loan Documents are true and correct in all material
respects as of the date hereof (except those which expressly relate to an earlier period);
and

     (c) before and after giving effect to this Amendment, no Default or Event of Default
shall exist.

     6. Guarantors’ Acknowledgment and Affirmation. Each Guarantor hereby (a) acknowledges
and consents to all of the terms and conditions of this Amendment and (b) affirms that, jointly and
severally together with the other Guarantors, it guarantees the prompt payment and performance of
the Obligations as provided in the applicable Guaranty Agreement.

     7. Affirmation of Security Interests. Each Loan Party (a) affirms that each of the
Liens granted in or pursuant to the Loan Documents are valid and subsisting and (b) agrees that
this Amendment shall in no manner impair or otherwise adversely effect any of the Liens granted in
or pursuant to the Loan Documents.

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     8. Full Force and Effect. Except as modified hereby, all of the terms and provisions
of the Credit Agreement and the other Loan Documents (including schedules and exhibits thereto)
shall remain in full force and effect.

     9. Fees and Expenses. The Company agrees to pay all reasonable costs and expenses of
the Administrative Agent in connection with the preparation, execution and delivery of this
Amendment, including the reasonable fees and expenses of Moore & Van Allen, PLLC.

     10. Counterparts. This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original, and it shall not be necessary
in making proof of this Amendment to produce or account for more than one such counterpart.

     11. Governing Law. This Amendment shall be a contract made under and governed by the
internal laws of the State of Illinois applicable to contracts made and to be performed entirely
within such state, without regard to conflict of laws principles.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

10

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	COMPANY: 	HURON CONSULTING GROUP INC.,

a Delaware corporation

 	 
	 	By:  	/s/ James K. Rojas
 	 
	 	 	Name:  	James K. Rojas 	 
	 	 	Title:  	CFO 	 
	 
	GUARANTORS: 	HURON CONSULTING GROUP HOLDINGS LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ James K. Rojas
 	 
	 	 	Name:  	James K. Rojas 	 
	 	 	Title:  	CFO 	 
	 
	 	HURON CONSULTING SERVICES LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ James K. Rojas
 	 
	 	 	Name:  	James K. Rojas 	 
	 	 	Title:  	CFO 	 
	 
	 	WELLSPRING MANAGEMENT SERVICES LLC,

formerly known as SPELTZ & WEIS LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ James K. Rojas
 	 
	 	 	Name:  	James K. Rojas 	 
	 	 	Title:  	CFO 	 
	 
	 	HURON DEMAND LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ James K. Rojas
 	 
	 	 	Name:  	James K. Rojas 	 
	 	 	Title:  	CFO 	 
	 

HURON CONSULTING GROUP INC.

NINTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT: 	BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/
Bozena Janociak 	 
	 	 	Name:  	Bozena Janociak 	 
	 	 	Title:  	Assistant Vice President 	 
	 

HURON CONSULTING GROUP INC.

NINTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 
	LENDERS: 	BANK OF AMERICA, N.A., as Issuing Lender, Swingline Lender and Lender

 	 
	 	By:  	/s/ David Bacon
 	 
	 	 	Name:  	David Bacon 	 
	 	 	Title:  	SVP 	 
	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/  Nathan Margol
 	 
	 	 	Name:  	Nathan Margol 	 
	 	 	Title:  	Vice President 	 
	 
	 	FIFTH THIRD BANK

 	 
	 	By:  	/s/
Susan M. Kaminski	 
	 	 	Name:  	Susan M. Kaminski	 
	 	 	Title:  	 	 
	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ John S. Sneed
 	 
	 	 	Name:  	John S. Sneed 	 
	 	 	Title:  	Relationship Manager 	 
	 
	 	NATIONAL CITY BANK

 	 
	 	By:  	/s/ Jon R. Hinard
 	 
	 	 	Name:  	Jon R. Hinard 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	THE PRIVATE BANK AND TRUST COMPANY

 	 
	 	By:  	/s/ James M. Feldman
 	 
	 	 	Name:  	James M. Feldman 	 
	 	 	Title:  	Managing Director 	 
	 
	 	RBS CITIZENS, N.A.

 	 
	 	By:  	/s/  M. James Barry, III
 	 
	 	 	Name:  	M. James Barry, III 	 
	 	 	Title:  	Vice President 	 
	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Jon C. Long
 	 
	 	 	Name:  	Jon C. Long 	 
	 	 	Title:  	First Vice President 	 
	 

HURON CONSULTING GROUP INC.

NINTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	TD BANK, N.A.

 	 
	 	By:  	/s/ Mario da Ponte
 	 
	 	 	Name:  	Mario da Ponte 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By:  	/s/ Morgan Lyons
 	 
	 	 	Name:  	Morgan Lyons 	 
	 	 	Title:  	Vice President 	 
	 

HURON CONSULTING GROUP INC.

NINTH AMENDMENT TO CREDIT AGREEMENT

 

 

Schedule 2.3

Existing Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer	 	Letter of Credit Number	 	Expiry Date	 	Currency and Amount	 	Beneficiary
	BofA	 	 	68049364	 	 	 	08/31/10	 	 	$25,997.92 (SAR 97,500.00)	 	King Fahad Specialist HospitalExhibit 10.1

Exhibit 10.1

EXECUTION VERSION

ASSET PURCHASE AGREEMENT

by and among

PORTOFINO ACQUISITION COMPANY,

as Buyer,

PATTERSON-UTI ENERGY, INC.,

as Buyer Parent,

and

KEY ENERGY PRESSURE PUMPING SERVICES, LLC,

and

KEY ELECTRIC WIRELINE SERVICES, LLC,

as Sellers,

and

KEY ENERGY SERVICES, INC.,

as Seller Parent

Dated as of July 2, 2010

Relating to the Acquisition of the

Assets of Sellers’ Pressure Pumping

and Wireline Businesses

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	Section 1.1 Definitions
	 	 	1	 
	Section 1.2 Rules of Interpretation
	 	 	13	 
	ARTICLE II SALE AND PURCHASE
	 	 	14	 
	Section 2.1 Purchase and Sale of Purchased Assets
	 	 	14	 
	Section 2.2 Instruments of Conveyance and Transfer
	 	 	15	 
	Section 2.3 Excluded Assets
	 	 	15	 
	Section 2.4 Buyer’s Assumed Obligations
	 	 	16	 
	Section 2.5 Retained Liabilities
	 	 	17	 
	Section 2.6 Purchase Price
	 	 	18	 
	Section 2.7 Allocation of Purchase Price
	 	 	18	 
	Section 2.8 Preparation of Inventory Certificate
	 	 	18	 
	Section 2.9 Post-Closing Payments and Adjustments to Purchase Price
	 	 	19	 
	ARTICLE III CLOSING
	 	 	19	 
	Section 3.1 Closing
	 	 	19	 
	Section 3.2 Deliveries by Buyer to Sellers
	 	 	19	 
	Section 3.3 Deliveries by Sellers to Buyer
	 	 	20	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES AS TO SELLERS, SELLER PARENT AND THE PURCHASED BUSINESS
	 	 	21	 
	Section 4.1 Organization
	 	 	21	 
	Section 4.2 Power and Authority; Authorization; Enforceability
	 	 	21	 
	Section 4.3 No Conflicts; Consents
	 	 	21	 
	Section 4.4 Litigation; Orders
	 	 	22	 
	Section 4.5 Fees
	 	 	22	 
	Section 4.6 Financial Statements; Liabilities
	 	 	22	 
	Section 4.7 Absence of Changes or Events
	 	 	22	 
	Section 4.8 (Reserved)
	 	 	22	 
	Section 4.9 Inventory
	 	 	22	 
	Section 4.10 Assumed Contracts
	 	 	23	 
	Section 4.11 Tax Matters
	 	 	23	 

 

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	Section 4.12 Sufficiency and Condition of and Title to Purchased Assets
	 	 	24	 
	Section 4.13 Equipment and Machinery and Vehicles
	 	 	24	 
	Section 4.14 Real Property
	 	 	24	 
	Section 4.15 Intellectual Property
	 	 	25	 
	Section 4.16 Compliance with Laws
	 	 	25	 
	Section 4.17 Legal Proceedings; Orders
	 	 	25	 
	Section 4.18 Permits
	 	 	26	 
	Section 4.19 Employees
	 	 	26	 
	Section 4.20 Labor and Employment Matters
	 	 	26	 
	Section 4.21 Employee Benefits
	 	 	26	 
	Section 4.22 Environmental Matters
	 	 	27	 
	Section 4.23 Exclusive Representation
	 	 	28	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES AS TO BUYER AND BUYER PARENT
	 	 	28	 
	Section 5.1 Existence
	 	 	28	 
	Section 5.2 Power and Authority; Authorization; Enforceability
	 	 	28	 
	Section 5.3 No Conflicts; Consents
	 	 	29	 
	Section 5.4 Litigation; Orders
	 	 	29	 
	Section 5.5 Fees
	 	 	29	 
	Section 5.6 Financing
	 	 	29	 
	ARTICLE VI COVENANTS OF SELLERS
	 	 	29	 
	Section 6.1 Access
	 	 	29	 
	Section 6.2 Environmental Defects
	 	 	31	 
	Section 6.3 Ordinary Conduct
	 	 	32	 
	Section 6.4 Non-Competition; Non-solicitation
	 	 	34	 
	Section 6.5 Records
	 	 	35	 
	Section 6.6 Disclosure Schedules, Updated Disclosures; Breaches
	 	 	35	 
	Section 6.7 Employees of Purchased Business
	 	 	36	 
	Section 6.8 Further Actions
	 	 	36	 
	ARTICLE VII COVENANTS OF BUYER
	 	 	36	 

 

-ii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	Section 7.1 Notice, Breaches
	 	 	36	 
	Section 7.2 Removal of Retained Marks
	 	 	36	 
	Section 7.3 Further Actions
	 	 	36	 
	ARTICLE VIII MUTUAL COVENANTS
	 	 	37	 
	Section 8.1 Cooperation
	 	 	37	 
	Section 8.2 Notices; Filings; Consents
	 	 	37	 
	Section 8.3 Monies Received Following Closing
	 	 	38	 
	Section 8.4 Employee Benefits Matters
	 	 	39	 
	Section 8.5 Scrap Equipment
	 	 	41	 
	Section 8.6 Publicity
	 	 	41	 
	Section 8.7 Confidentiality
	 	 	42	 
	Section 8.8 Transitional Matters
	 	 	43	 
	ARTICLE IX TAX MATTERS
	 	 	43	 
	Section 9.1 Cooperation
	 	 	43	 
	Section 9.2 Taxes Generally
	 	 	43	 
	Section 9.3 Transfer Taxes
	 	 	44	 
	Section 9.4 Property Expense Apportionment
	 	 	44	 
	Section 9.5 Tax Treatment of Indemnity Payments
	 	 	45	 
	ARTICLE X CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS
	 	 	45	 
	Section 10.1 Accuracy of Representations and Warranties
	 	 	45	 
	Section 10.2 No Law
	 	 	45	 
	Section 10.3 No Order
	 	 	45	 
	Section 10.4 Waiting Period
	 	 	45	 
	Section 10.5 Audited Financial Statements
	 	 	45	 
	ARTICLE XI CONDITIONS PRECEDENT TO SELLERS’ OBLIGATIONS
	 	 	46	 
	Section 11.1 Accuracy of Representations and Warranties
	 	 	46	 
	Section 11.2 No Law
	 	 	46	 
	Section 11.3 No Order
	 	 	46	 
	Section 11.4 Waiting Period
	 	 	46	 
	ARTICLE XII TERMINATION
	 	 	46	 

 

-iii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	Section 12.1 Termination of Agreement
	 	 	46	 
	Section 12.2 Effect of Termination
	 	 	47	 
	ARTICLE XIII INDEMNIFICATION
	 	 	47	 
	Section 13.1 In General
	 	 	47	 
	Section 13.2 Method of Asserting Claims, Etc.
	 	 	48	 
	Section 13.3 Responsibilities Relating to Environmental Conditions for Which a
Seller has Elected to Conduct Remedial Action
	 	 	50	 
	Section 13.4 Remedies
	 	 	50	 
	Section 13.5 Survival of Representations and Warranties; Limitations
	 	 	51	 
	Section 13.6 Recovery
	 	 	51	 
	Section 13.7 Express Negligence
	 	 	52	 
	ARTICLE XIV MISCELLANEOUS
	 	 	52	 
	Section 14.1 Amendments
	 	 	52	 
	Section 14.2 Notices
	 	 	52	 
	Section 14.3 Assignment
	 	 	53	 
	Section 14.4 Severability
	 	 	53	 
	Section 14.5 Entire Agreement
	 	 	53	 
	Section 14.6 Governing Law
	 	 	53	 
	Section 14.7 Expenses
	 	 	53	 
	Section 14.8 Binding Effect; No Third Party Beneficiaries
	 	 	53	 
	Section 14.9 Counterparts
	 	 	54	 
	Section 14.10 Time
	 	 	54	 
	Section 14.11 Seller Parent Assurance
	 	 	54	 
	Section 14.12 Buyer Parent Assurance
	 	 	54	 

 

-iv-

 

Exhibits

	 	 	 
	Exhibit A

	 	(Reserved)
	Exhibit B

	 	Material Terms of Transition Services Agreement
	Exhibit C

	 	Material Terms of Lease Agreement
	Exhibit D

	 	Material Terms of Lease Agreement — Heber Springs

Schedules

	 	 	 
	2.1(a)-1

	 	Pressure Pumping Equipment and Machinery
	2.1(a)-2

	 	Wireline Equipment and Machinery
	2.1(b)-1

	 	Pressure Pumping Assumed Contracts
	2.1(b)-2

	 	Wireline Assumed Contracts
	2.1(c)-1

	 	Pressure Pumping Vehicles
	2.1(c)-2

	 	Wireline Vehicles
	2.1(d)

	 	Transferred Owned Real Property
	2.1(e)

	 	Transferred Leased Real Property and Transferred Leases
	2.1(f)

	 	Transferred Intellectual Property
	2.1(g)

	 	Transferred Permits
	2.3(j)

	 	Shared Use Assets
	2.3(l)

	 	Excluded Assets
	2.7

	 	Allocation of Purchase Price
	4.3

	 	Sellers’ Conflicts and Consents
	4.6

	 	Financial Statements
	4.7

	 	Changes or Events
	4.10

	 	Material Contracts Not Included as Assumed Contracts
	4.12

	 	Sufficiency and Condition of and Title to Purchased Assets
	4.16

	 	Compliance with Laws
	4.17

	 	Litigation
	4.18

	 	Permits
	4.19

	 	Business Employees
	4.20

	 	Labor Matters and Employment Disputes
	4.22

	 	Environmental Matters
	6.1

	 	Allocated Values
	8.8(a)

	 	Pricing Agreements

 

-v-

 

ASSET PURCHASE AGREEMENT

This Asset Purchase Agreement (this “Agreement”) dated as of July 2, 2010, is by and
among Key Energy Pressure Pumping Services, LLC, a Texas limited liability company (“Seller
A”), Key Electric Wireline Services, LLC, a Delaware limited liability company (“Seller
B”, and together with Seller A, the “Sellers”), Key Energy Services, Inc., a Maryland
corporation (“Seller Parent”), Portofino Acquisition Company, a Delaware corporation
(“Buyer”), and Patterson-UTI Energy, Inc., a Delaware corporation (“Buyer Parent”).

RECITALS

WHEREAS, Seller A is engaged in the business of providing certain pressure pumping services to
participants in the oil and natural gas industry and desires, on the terms and subject to the
conditions set forth herein, to sell certain assets and assign certain liabilities related thereto
to Buyer; and

WHEREAS, Seller B is engaged in the business of providing certain electric wireline services
to participants in the oil and natural gas industry and desires, on the terms and subject to the
conditions set forth herein, to sell certain assets and assign certain liabilities related thereto
to Buyer; and

WHEREAS, Buyer desires, on the terms and subject to the conditions set forth herein, to
purchase such assets and assume such liabilities; and

NOW, THEREFORE, in consideration of the premises, the terms and provisions set forth herein,
the mutual benefits to be gained by the performance thereof and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions. As used in this Agreement, the terms set forth below shall
have the following respective meanings unless the context clearly requires otherwise:

“Accounts Receivable” means the accounts receivable, including trade accounts
receivable, notes receivable and loans receivable generated from transactions involving the
Purchased Business.

“Adjustment Date” has the meaning set forth in Section 9.4 of this Agreement.

“Affiliate” means, with respect to a person, another person that directly, or
indirectly through one or more intermediaries, Controls, is Controlled by or is under common
Control with such person.

“Agreement” has the meaning set forth in the Preamble of this Agreement.

“Allocated Value” has the meaning set forth in Schedule 6.1(b) of this
Agreement.

ASSET PURCHASE AGREEMENT

 

1

 

“Asset Allocation” has the meaning set forth in Section 2.7 of this Agreement.

“Assumed Contracts” means the Pressure Pumping Assumed Contracts and the Wireline
Assumed Contracts.

“Assumed Obligations” has the meaning set forth in Section 2.4 of this
Agreement.

“Assumption Agreement” means an agreement in customary form, reasonably satisfactory
to Buyer and Sellers pursuant to which Buyer shall assume the Assumed Obligations.

“Balance Sheet” has the meaning set forth in Section 4.6 of this Agreement.

“Balance Sheet Date” has the meaning set forth in Section 4.6 of this
Agreement.

“Base Inventory” means $6,000,000.

“Business Employees” has the meaning set forth in Section 4.19 of this
Agreement.

“Buyer” has the meaning set forth in the Preamble of this Agreement.

“Buyer Lease Agreement” means a written lease agreement containing the material terms
identified in Exhibit C to this Agreement between Buyer, as tenant, and an Affiliate of
Sellers, as landlord, relating to the Tioga, North Dakota service facility used in the Wireline
Business.

“Buyer Parent” has the meaning set forth in the Preamble of this Agreement.

“Buyer Plans” has the meaning set forth in Section 8.4(e) of this Agreement.

“Capital Stock” means (i) with respect to a corporation, any and all shares,
interests, participations, rights or other equivalents (however designated) of equity or ownership
interests in such corporation, (ii) with respect to any other entity, any and all partnership,
limited partnership, limited liability company or other equity or ownership interests of such
entity however denominated and (iii) any right or security convertible into or exercisable or
exchangeable for any of the foregoing.

“Claim” means any suit, demand, claim or action of any type, however styled, by or
before any Court or Governmental Authority.

“Claim Notice” has the meaning set forth in Section 13.2(a) of this Agreement.

“Closing” has the meaning set forth in Section 3.1 of this Agreement.

“Closing Date” has the meaning set forth in Section 3.1 of this Agreement.

“Closing Date Inventory” means the Inventory of the Purchased Business at the
Effective Time calculated pursuant to Section 2.8(a).

“COBRA” has the meaning set forth in Section 8.4(d) of this Agreement.

ASSET PURCHASE AGREEMENT

 

2

 

“Code” means the Internal Revenue Code of 1986, as amended.

“Commercially Reasonable Remediation Cost” means the commercially reasonable cost
necessary to conduct Remedial Action using risk-based standards reasonably appropriate for the type
of use of the Transferred Real Property affected that would be implemented by a similarly-situated
owner or lessee taking into account (i) the current use of the property affected, (ii) the cost
necessary to correct a violation of Environmental Laws or Environmental Permits (or the lack of an
Environmental Permit), (iii) any applicable requirements or standards under Environmental Laws and
the enforcement policies and standards of the Governmental Authorities responsible for enforcing
Environmental Laws and (iv) any applicable requirements of any lease agreements in effect as of the
Closing Date for the Transferred Leased Real Property to which a Seller or any of its Affiliates is
a party. The use of Institutional Controls, as that term is defined herein, is permissible
provided that such use is not prohibited by: (1) the terms of any existing lease agreement for the
Transferred Real Property or (2) any Landlord under such lease agreements whose permission is
required before an Institutional Control may be installed.

“Commonly Controlled Entity” means, with respect to a Person, any corporation, trade,
business or entity under common control with such Person within the meaning of Section 414(b), (c),
(m) or (o) of the Code or Section 4001 of ERISA.

“Competing Business” has the meaning set forth in Section 6.4(a) of this
Agreement.

“Contract” means any contract, agreement, indenture, note, bond, loan, lease,
conditional sale contract, mortgage or insurance policy, whether oral or written.

“Control” means the possession, directly or indirectly through one or more
intermediaries, of the power to direct or cause the direction of the management and policies of a
person, whether through the ownership of voting securities, by contract or otherwise.

“Court” means (i) any court established and functioning under the Laws of any nation
or state, or any political subdivision thereof, including the United States of America, Canada, any
state of the United States of America and any province of Canada and (ii) any arbitrator,
arbitration panel or similar body.

“Credit Facility” means the Credit Agreement, dated as of November 29, 2007, among
Seller Parent, each lender from time to time party thereto, Bank of America, N.A. as Paying Agent,
Co-Administrative Agent, Swing Line Lender and L/C Issuer, and Wells Fargo Bank, National
Association, as Co-Administrative Agent, Swing Line Lender and L/C Issuer, as amended by that
certain Amendment No. 1 to Credit Agreement, dated as of October 27, 2009.

“Critical Properties” means those certain Transferred Real Properties located in
Cleburne, Chico, Midland ( Pressure Pumping yard and office), and Carrizo Springs, Texas as
identified in Schedule 2.1(d) and Schedule 2.1(e) to this Agreement.

“Damages” has the meaning set forth in Section 13.1(a) of this Agreement.

“Designated Accountants” means Ernst & Young LLP or another firm of Designated
Accountants of nationally recognized standing consented to by Buyer and Sellers.

ASSET PURCHASE AGREEMENT

 

3

 

“Effective Time” means 11:59 p.m. on the Closing Date.

“Employee Benefit Plan” means an “employee welfare benefit plan,” an “employee pension
benefit plan” (as defined in Sections 3(1) and 3(2) of ERISA) and any other pension, profit
sharing, retirement, deferred compensation, stock purchase, stock option, incentive, bonus,
vacation, severance, disability, health, hospitalization, medical, life insurance, vision, dental,
prescription drug, supplemental unemployment, apprenticeship and training, day care, scholarship,
group legal benefits, fringe benefit or other employee benefit plan, program, policy, agreement or
arrangement, whether written or unwritten, formal or informal and whether or not ERISA is
applicable to such plan, program, policy or arrangement.

“Environmental Condition” means the presence of Hazardous Materials in, at, on, under
or from (including migrating from) any of the Transferred Real Property in concentrations that
would be required to be investigated or remediated under applicable Environmental Laws or
Environmental Permits.

“Environmental Defect Notice” means a written notice of a Potentially Material
Environmental Condition, as more particularly described in Section 6.2(a) herein,
discovered prior to Closing in the course of conducting a Phase II ESA, or through review of other
Environmental Reports (as defined in Section 4.22) provided by Sellers.

“Environmental Defect Notice Date” means the date no later than 10 business days
before the Closing Date.

“Environmental Laws” means any and all Laws and Orders relating to pollution,
preservation, remediation or protection of the environment, human health and safety, the
preservation or reclamation of natural resources, or to the management or Release of Hazardous
Materials, including the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended, the Federal Water Pollution Control Act, as amended by the Clean Water Act of
1977, the Clean Air Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976, as
amended, the Toxic Substances Control Act of 1976, as amended, the Occupational Safety and Health
Act of 1970, as amended, the Emergency Planning and Community Right-to-Know Act of 1986, as
amended, the Safe Drinking Water Act of 1974, as amended, the Hazardous Materials Transportation
Act, as amended, the Oil Pollution Act of 1990, as amended, and any similar or implementing state
or local Laws and all amendments or regulations promulgated thereunder.

“Environmental Liabilities” means any Liability, Claim, loss, damage, fine, penalty,
cost, expense, deficiency or responsibility (i) arising under or relating to any Environmental Law,
Environmental Permit, Release or Environmental Condition, or (ii) arising under common law, to the
extent such Liability, Claim, loss, or damage arises out of an Environmental Condition.

“Environmental Material Adverse Effect” shall mean any Environmental Liabilities that
are reasonably expected to exceed $200,000 per occurrence or series of related occurrences or
$500,000 in the aggregate.

“Environmental Permit” means any Permit required under applicable Environmental Laws.

ASSET PURCHASE AGREEMENT

 

4

 

“Environmental Reports” has the meaning set forth in Section 4.22(h) of this
Agreement.

“Equipment and Machinery” means the Pressure Pumping Equipment and Machinery and the
Wireline Equipment and Machinery.

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

“Excluded Assets” has the meaning set forth in Section 2.3 of this Agreement.

“Final Closing Date Inventory” means Closing Date Inventory (i) as set forth in the
Inventory Certificate, if no notice of disagreement with respect thereto is duly delivered by Buyer
pursuant to Section 2.8(b); or (ii) if such notice of disagreement is delivered, (a) as
agreed by Buyer and Sellers pursuant to Section 2.8(c) or (b) in the absence of such
agreement, as shown in the Designated Accountants’ calculation delivered pursuant to Section
2.8(c); provided, however, that in no event shall Final Closing Date Inventory
be greater than Sellers’ calculation of Closing Date Inventory delivered pursuant to Section
2.8(a) or less than Buyer’s calculation of the Closing Date Inventory delivered pursuant to
Section 2.8(b).

“Financial Statements” has the meaning set forth in Section 4.6 of this
Agreement.

“GAAP” has the meaning set forth in Section 4.6 of this Agreement.

“Governmental Authority” means any government of, or any authority, agency, regulatory
body, commission, official or other instrumentality of any government of, the United States of
America or any foreign country, or any domestic or foreign state, province, county, city, local or
other political subdivision thereof.

“Hazardous Materials” means: (i) any chemical, material, waste or substance defined
or regulated by, or that forms the basis of Liability under, any applicable Environmental Law
including any “hazardous waste,” “extremely hazardous waste,” “hazardous material,” “hazardous
substance,” “toxic substance,” “contaminant,” “pollutant” or any other comparable term or
expression intended to define or classify substances pursuant to applicable Environmental Law by
reason of properties harmful to human health and safety, or the indoor or outdoor environment, (ii)
any oil, petroleum hydrocarbon, petroleum product or petroleum substance (including crude oil, any
petroleum fraction or any petroleum derivative substance), (iii) any flammable substances or
explosives and (iv) any radioactive materials, polychlorinated biphenyls, asbestos-containing
materials, radon or urea formaldehyde foam insulation.

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“Immovable Fixture” means a fixture that cannot be removed from the associated real
property without material damage to such fixture or such real property.

“Indemnified Party” means a party or its applicable directors, officers, employees,
equity owners, agents, representatives, successors and permitted assigns that are entitled to
indemnification pursuant to Article XIII of this Agreement.

ASSET PURCHASE AGREEMENT

 

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“Indemnifying Party” means a party that is obligated to provide indemnification
pursuant to Article XIII of this Agreement.

“Indemnity Notice” has the meaning set forth in Section 13.2(e) of this
Agreement.

“Institutional Controls” means one or more institutional control(s) as defined under
applicable Environmental Laws and includes the imposition of restrictive covenants or deed
restrictions limiting the use of the Transferred Leased Real Property to commercial/industrial use,
the presence of engineered barriers, and the restriction of the installation or use of water wells,
but only to the extent the same are not prohibited as set forth in the term Commercially Reasonable
Remediation Cost.

“Intellectual Property” means intellectual property rights relating to: (i) patents
and patent applications; (ii) copyrights (registered or unregistered) and copyrightable works, and
registrations and applications for registration thereof, other than those relating to Marks; (iii)
trade secrets and know-how; and (iv) customized or proprietary computer software, data and
databases, and all documentation related thereto, other than documentation related to
“off-the-shelf” software licenses and similar software programs licenses that provide for the
payment of a license fee of less than $10,000 per year. Intellectual Property excludes all Marks.

“Inventory” means all inventories of the Sellers, or their Affiliates, wherever
situated, on hand as of the Closing Date used in or related to the Purchased Business, including
raw materials, samples, spare parts and all other materials and supplies to be used in or consumed
by the Purchased Business. Non-capitalized references to “inventory” shall mean the same as
capitalized references to “Inventory” except that they shall not be limited to items on hand as of
the Closing Date.

“Inventory Certificate” has the meaning set forth in Section 2.8(a) of this
Agreement.

“IRS” means the United States Internal Revenue Service.

“Knowledge” means, with respect to a Person, the knowledge, after due inquiry, of such
Person. In the case of Sellers, a matter shall be within the Knowledge of Sellers if an executive
officer of Seller Parent, the Senior Vice President, Senior Director, Director or Asset Manager of
Pressure Pumping Services or the Senior Director or Area Director of Wireline Services has, or
would reasonably be expected to have, after due inquiry, actual knowledge of such matter.

“Law” means any applicable constitutional provision, statute, act, code (including the
Code), law, regulation, rule, ordinance, proclamation, resolution, decision, declaration, treaty or
interpretive or advisory opinion of a Governmental Authority.

“Legal Proceeding” means any judicial, administrative or arbitral action, hearing,
charge, complaint, suit or proceeding (public or private) by or before any Governmental Authority.

“Liabilities” means, with respect to a Person, any obligation or liability of such
Person of any kind, character or description, whether known or unknown, absolute or contingent,
accrued or unaccrued, disputed or undisputed, liquidated or unliquidated, secured or unsecured,
joint or several, due or to become due, vested or unvested, executory, determined, determinable or

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otherwise, whether or not the same is required to be shown on the financial statements of such
Person.

“Lien” means any lien, claim, encumbrance, security interest, option, charge or
restriction of any kind.

“Marks” means, throughout the world, whether or not registered, any names, trademarks,
service marks, trade dress rights, domain names or trade names and any derivatives thereof and
logos related thereto, including all goodwill and brand equity associated therewith and symbolized
thereby, and further including all statutory and common law rights embodied therein and associated
therewith.

“Material Adverse Effect” means an event, change or occurrence that has had or would
reasonably be expected to have (i) a material adverse effect on the business, financial condition,
assets, properties or results of operations of the Purchased Business, taken as a whole or (ii) a
material adverse effect on the ability of Sellers to consummate the transactions contemplated
hereby in accordance with the terms of this Agreement, other than in the case of clause (i) or (ii)
any such event, change or occurrence relating to or resulting from (x) changes or conditions
affecting the economy, the financial markets or the markets for oil and natural gas in general or
changes in political or regulatory conditions generally, (y) general changes in the segments of the
oil and natural gas industry in which the Purchased Business operates, other than changes in Law
applicable to hydraulic fracturing that would make such practice illegal or commercially
impractical in a jurisdiction in which Seller A conducts the Pressure Pumping Business, or (z) the
announcement (or the effect of any such announcement) or consummation of the transactions
contemplated by this Agreement.

“Material Contract” means, with respect to any person, (i) any Contract to which such
person is a party or by which such person is in any way bound as to which the remaining benefit to,
or obligation of, such person under any such Contract (a) in any case in which the benefit or
obligation can be reasonably reduced to monetary terms, equals or exceeds $50,000 or (b) in any
case in which it cannot reasonably be reduced to monetary terms, is or could reasonably be expected
to be material to such person and (ii) any of the following types of Contracts to which such person
is a party or by which such person is in any way bound:

(i) any Contract under which indebtedness for borrowed money or the deferred purchase price of
property or services is outstanding or committed (other than trade payables incurred in the
ordinary course of business);

(ii) any Contract that constitutes a lease, whether operating or capital;

(iii) any Contract that constitutes a guaranty or other agreement of suretyship;

(iv) except for those Contracts entered into in the ordinary course of business, any Contract
containing an agreement of indemnification;

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(v) any Contract that includes any covenant or agreement of such person that purports to
restrict the business activity of such person or limit the freedom of any such person to compete
with any other person;

(vi) any joint venture, partnership, investment or other Contract (A) involving a sharing of
profits or losses relating to all or any portion of the business of such person or (B) requiring
any such person to invest funds in or make loans to, or purchase any securities of, another person,
venture or other business enterprise;

(vii) any Contract in which such person has granted to a third person a right of first refusal
or similar right to acquire assets or a business or portion thereof;

(viii) any Contract providing for commissions, fees or royalties or other payments by or to a
person based on sales, purchases or profits, other than direct payments for goods, materials,
supplies or services;

(ix) any Contract relating to the licensing, sublicensing or use of Intellectual Property
(other than “off-the-shelf” and similar software program licenses that provide for the payment of a
license fee of less than $10,000 per year);

(x) any Contract relating to or providing for the creation of a Lien on any assets of such
person;

(xi) any Employee Benefit Plan and any other employment, consulting, management, severance,
compensation or similar Contract and any Contract for management, consulting or other similar
services;

(xii) any pricing or supply Contract;

(xiii) any Permit; and

(xiv) any Contract with a Governmental Authority.

“Non-Conveyed Scrap Equipment” has the meaning set forth in Section 8.5 of
this Agreement.

“Order” means any order, judgment, injunction, ruling or decree of any Court or
Governmental Authority.

“Organizational Documents” means (i) with respect to a corporation, the articles or
certificate of incorporation and bylaws thereof, or any comparable governing instruments, together
with any other governing agreements or instruments of such corporation or the shareholders thereof,
each as amended, (ii) with respect to a limited liability company, the certificate of formation and
the operating agreement or regulations of such limited liability company, or any comparable
governing instruments, each as amended, (iii) with respect to a partnership, the certificate of
formation and the partnership agreement of such partnership and, if applicable, the Organizational
Documents of such partnership’s general partner, or any

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comparable governing instruments, each as amended and (iv) with respect to any other Person
the organizational, constituent and/or governing documents and/or instruments of such Person.

“Permit” means any permit, license, certificate, tariff, concession, variance,
exemption, approval, consent, franchise, registration, Order or authorization.

“Permitted Liens” means (i) Liens that are caused or created by Buyer; (ii) Liens for
property Taxes which are not yet due and payable and Liens for Taxes which are being contested in
good faith by appropriate proceedings, provided a reserve or other appropriate provision, if any,
as required by GAAP is made therefor in the Closing Balance Sheet and such proceedings are
disclosed in Sellers’ Disclosure Schedules; (iii) inchoate Liens arising by operation of law,
including materialman’s, mechanic’s, repairman’s, laborer’s, warehouseman’s, carrier’s, employee’s,
contractor’s, operator’s, landlord’s, workmen’s, suppliers’ and other similar Liens arising in the
ordinary course of business, provided such liens secure obligations that, as of the Closing Date,
are not due and payable or are being contested in good faith and a reserve or other appropriate
provision, if any, as required by GAAP is made therefor in the Closing Balance Sheet; (iv) minor
defects, irregularities in title, easements, rights of way, servitudes, restrictions (including
zoning restrictions), covenants, licenses, encroachments, protrusions and other similar charges or
encumbrances (whether affecting fee interests, a landlord’s interest in leased properties or a
tenant’s interest in leased properties) that are recorded in the appropriate public records for
which the affected real property is located or are reflected on an accurate survey of the affected
real property, none of which, individually or in the aggregate, (a) were incurred with any
indebtedness and (b) would reasonably be expected to have a material adverse effect on the
business, financial condition, assets, properties or results of operation of the Purchased
Business, taken as a whole; (v) Liens (other than any Lien imposed by ERISA and any Lien for Taxes)
(a) imposed by Law or deposits made in connection therewith in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types of social security
legislation, (b) incurred in the ordinary course of business to secure the performance of tenders,
statutory obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory
bonds, bids, leases, government contracts, trade contracts, performance and return of money bonds
and other similar obligations (exclusive of obligations for the payment of borrowed money) or (c)
arising by virtue of deposits made in the ordinary course of business to secure liability for
premiums to insurance carriers; provided that with respect to clauses (a), (b) and (c) of
this clause (v), such Liens are for amounts not yet due and payable or, to the extent such amounts
are so due and payable, such amounts are being contested in good faith and a reserve or other
appropriate provision, if any, as required by GAAP is made therefor in the Closing Balance Sheet
and such Liens are disclosed in the Sellers’ Disclosure Schedules.

“Person” or “person” means any natural person, firm, corporation, partnership,
limited liability company, trust, joint venture, association or other organization which has a
legal existence under the Laws of its jurisdiction of formation which is separate from its owner or
owners and any Governmental Authority.

“Phase I ESA” has the meaning set forth in Section 6.1(b) of this Agreement.

“Phase II ESA” has the meaning set forth in Section 6.1(b) of this Agreement.

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“Potentially Material Environmental Condition” means an Environmental Condition for
which applicable Environmental Law requires notice to any Person, further investigation or any form
of response or Remedial Action, any or all of which would reasonably be expected to exceed $50,000.

“Pressure Pumping Assumed Contracts” means the Contracts related to the Pressure
Pumping Business identified on Schedule 2.1(b)-1.

“Pressure Pumping Business” means Seller A’s business of utilizing pressure pumping
and fracturing equipment to provide the following services to customers in the oil and natural gas
exploration and production industry: primary cementing services and fracturing (regardless of fluid
type used) and acidizing well stimulation services. For the avoidance of doubt, the Pressure
Pumping Business does not include (i) any operations outside of the United States, (ii) any
operations in the State of California, (iii) coiled tubing services, including nitrogen and
acidizing services performed in conjunction therewith, (iv) plugging and abandonment services; (v)
acidizing services ancillary to the performance of fluid management services provided by an
affiliate of Seller A or (vi) any pressure pumping services associated with cementing other than
primary cementing.

“Pressure Pumping Equipment and Machinery” means the equipment and machinery used in
or related to the operation of the Pressure Pumping Business, including such equipment and
machinery identified on Schedule 2.1(a)-1 and the Pressure Pumping Scrap Equipment other
than any Pressure Pumping Scrap Equipment constituting Non-Conveyed Scrap Equipment.

“Pressure Pumping Scrap Equipment” means the Scrap Equipment related to the Pressure
Pumping Business.

“Pressure Pumping Vehicles” means the motor vehicles used in or related to the
operation of the Pressure Pumping Business identified on Schedule 2.1(c)-1.

“Purchase Price” has the meaning set forth in Section 2.6 of this Agreement.

“Purchased Assets” has the meaning set forth in Section 2.1 of this Agreement.

“Purchased Business” means the Pressure Pumping Business and the Wireline Business.

“Qualifying Business Employees” has the meaning set forth in Section 8.4(a) of
this Agreement

“Records” means books of record and account, Contracts, commitments and files, Tax,
accounting, personnel and other records, manuals, training materials, guidelines, plans, brochures
and marketing materials and product and service catalogs, including in electronic form.

“Release” means any spill, emission, leaking, pumping, injection, deposit, disposal,
discharge, dispersal, leaching or migrating of any Hazardous Materials in, into, onto, or through
the environment (including ambient air, surface water, ground water, soils, land surface or
subsurface strata).

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“Remedial Action” or “Remediate” means the removal, abatement, response,
investigative, cleanup or monitoring activities undertaken to address any Environmental Conditions
or a Release, and any investigation, study, assessment, testing, monitoring, containment, removal,
disposal, closure, corrective action, passive remediation, natural attenuation or bioremediation,
and the installation and operation of remediation systems to address such Environmental Conditions
or Release; provided, however, in no event shall these activities be deemed to
include the cleanup, investigation, study, assessment, measurement, removal, or treatment of any
Hazardous Materials present in naturally-occurring levels.

“Representatives” means, with respect to a person, such person’s directors, officers,
employees and other agents and such person’s legal, financial, accounting and other advisors.

“Retained Liabilities” has the meaning set forth in Section 2.5 of this
Agreement.

“Restricted Period” has the meaning set forth in Section 6.4(a) of this
Agreement.

“Retained Marks” means all Marks owned or used by Sellers or any of their Affiliates,
including rights to the “Key” name and marks other than the Transferred Intellectual Property.

“Scrap Equipment” means assets with respect to which management of Sellers has
reasonably concluded that the costs of repair exceed the value thereof.

“Seller” and “Sellers” has the meaning set forth in the Preamble of this
Agreement.

“Seller A” has the meaning set forth in the Preamble of this Agreement.

“Seller B” has the meaning set forth in the Preamble of this Agreement.

“Sellers Environmental Liabilities” has the meaning set forth in Section
13.3(a) of this Agreement.

“Seller Lease Agreements” means written lease agreements containing the material terms
identified in (i) Exhibit C to this Agreement between an Affiliate of Sellers, as tenant,
and Buyer, as landlord, relating to the Chico, Texas service facility used in the Pressure Pumping
Business and (ii) Exhibit D to this Agreement between an Affiliate of Sellers, as tenant,
and Buyer, as Landlord, relating to the Heber Springs, Arkansas service facility used in the
Wireline Business.

“Seller Parent” has the meaning set forth in the Preamble of this Agreement.

“Seller Plans” means the Employee Benefit Plans of Seller Parent in which the Business
Employees participate.

“Sellers’ Disclosure Schedules” has the meaning set forth in Section 6.6 of
this Agreement.

“Shared Use Assets” means any assets used in both the Purchased Business and any other
business of Sellers and their Affiliates and listed or described on Schedule 2.3(j).

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“Straddle Period” means any Tax period or year commencing on or before and ending
after the Closing Date.

“Survival Periods” has the meaning set forth in Section 13.5(a) of this
Agreement.

“Tax” or “Taxes” means any taxes, assessments, fees and other governmental
charges imposed by any Governmental Authority, including income, profits, gross receipts, net
proceeds, alternative or add-on minimum, ad valorem, real property (including assessments, fees or
other charges imposed by any Governmental Authority that are based on the use or ownership of real
property), value added, turnover, sales, use, property, personal property (tangible and
intangible), environmental, stamp, leasing, lease, user, excise, duty, franchise, capital stock,
transfer, registration, license, withholding, social security (or similar), unemployment,
disability, payroll, employment, fuel, excess profits, occupational, premium, windfall profit,
severance, estimated or other charge of any kind whatsoever, including any interest, penalty or
addition thereto, whether disputed or not, including any item for which liability arises by
contract or as a transferee or successor.

“Tax Return” means any return, declaration, report, claim for refund or information
return or statement relating to Taxes, including any schedule or attachment thereto, and including
any amendment thereof.

“Taxing Authority” means, with respect to any Tax, the Governmental Authority that
imposes such Tax and the agency (if any) charged with the collection of such Tax for such
Governmental Authority, including the IRS.

“Territory” has the meaning set forth in Section 6.4(a) of this Agreement.

“Third Party Claim” has the meaning set forth in Section 13.2(a) of this
Agreement.

“Title Company” means a title company mutually agreeable to Buyer and Sellers.

“Title Policy” or “Title Policies” means owner’s policy or policies of title
insurance in form and substance reasonably satisfactory to Buyer, issued by the Title Company in
Buyer’s favor and in an amount equal to the applicable Allocated Value, insuring Buyer’s fee simple
title to the Transferred Owned Real Property, subject only to Permitted Liens.

“Transaction Documents” means this Agreement, the Assumption Agreement, the Seller
Lease Agreements, the Buyer Lease Agreement and the Transition Services Agreement.

“Transferred Intellectual Property” means the Intellectual Property used in or related
to the operation of the Purchased Business identified on Schedule 2.1(f).

“Transferred Leased Real Property” means the tracts of real property used in or
related to the operation of the Purchased Business identified on Schedule 2.1(e), unless
removed from among the Purchased Assets pursuant to Section 6.1, Section 6.2 or
Section 8.2.

“Transferred Leases” means all of the leases identified on Schedule 2.1(e),
unless removed from among the Purchased Assets pursuant to Section 6.1, Section 6.2
or Section 8.2.

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“Transferred Owned Real Property” means the tracts of real property used in or related
to the operation of the Purchased Business identified on Schedule 2.1(d), unless removed
from among the Purchased Assets pursuant to Section 6.1, Section 6.2 or Section
8.2.

“Transferred Permits” means the Permits used in the operation of the Purchased
Business identified on Schedule 2.1(g).

“Transferred Real Property” means the Transferred Owned Real Property and the
Transferred Leased Real Property.

“Transition Services Agreement” means a written Transition Services Agreement
containing the material terms identified in Exhibit B to this Agreement between Buyer,
Sellers and Seller Parent.

“Transitioned Employees” has the meaning set forth in Section 8.4(a) of this
Agreement.

“Treasury Regulations” shall mean the regulations promulgated by the United States
Department of the Treasury pursuant to and in respect of provisions of the Code. All references
herein to Sections of the Treasury Regulations shall include any corresponding provision or
provisions of Treasury Regulations hereafter proposed or adopted.

“Vehicles” means the Pressure Pumping Vehicles and the Wireline Vehicles.

“Wireline Assumed Contracts” means the Contracts related to the Wireline Business
identified on Schedule 2.1(b)-2.

“Wireline Business” means Seller B’s business of utilizing electric wireline equipment
to provide the following services to customers in the oil and natural gas exploration and
production industry: perforating, completion logging, production logging and casing integrity
services. For the avoidance of doubt, the Wireline Business does not include (i) any operations
outside of the United States, (ii) any operations in the State of California or (iii) plugging and
abandonment services.

“Wireline Equipment and Machinery” means the equipment and machinery used in or
related to the operation of the Wireline Business, including the equipment and machinery identified
on Schedule 2.1(a)-2 and the Wireline Scrap Equipment other than any Wireline Scrap
Equipment constituting Non-Conveyed Scrap Equipment.

“Wireline Scrap Equipment” means the Scrap Equipment used in or related to the
Wireline Business.

“Wireline Vehicles” means the motor vehicles used in or related to the operation of
the Wireline Business identified on Schedule 2.1(c)-2.

Section 1.2 Rules of Interpretation. The following provisions shall be applied
wherever appropriate herein:

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(a) “herein,” “hereby,” “hereunder,” “hereof,” “hereto” and other equivalent words shall
refer to this Agreement as an entirety and not solely to the particular portion of this Agreement
in which any such word is used;

(b) “or” is used in the inclusive sense of “and/or”;

(c) “including” means “including without limitation” and is a term of illustration and not of
limitation;

(d) all definitions set forth herein shall be deemed applicable whether the words defined are
used herein in the singular or the plural;

(e) wherever used herein, any pronoun or pronouns shall be deemed to include both the
singular and plural and to cover all genders;

(f) this Agreement and the other Transaction Documents have been jointly prepared by the
parties hereto and thereto, and neither this Agreement nor any other agreement, document or
instrument referred to herein or executed and delivered in connection herewith shall be construed
against any person as the principal draftsperson hereof or thereof;

(g) the section headings appearing in this Agreement are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or extent of such section,
or in any way affect this Agreement;

(h) any reference herein to a particular Section, Article, Exhibit or Schedule means a
Section or Article of, or an Exhibit or Schedule to, this Agreement unless otherwise expressly
stated herein;

(i) the Exhibits and Schedules attached hereto are incorporated herein by reference and shall
be considered part of this Agreement;

(j) unless otherwise specified herein, all accounting terms used herein shall be interpreted,
and all determinations with respect to accounting matters hereunder shall be made, in accordance
with GAAP, applied on a consistent basis; and

(k) all references to days shall mean calendar days unless otherwise provided.

ARTICLE II

SALE AND PURCHASE

Section 2.1 Purchase and Sale of Purchased Assets. Subject to the terms and
conditions of this Agreement, each of Seller A and Seller B hereby agrees to grant, sell, convey,
transfer, assign and deliver to Buyer, and Buyer hereby agrees to purchase and acquire, all right,
title and interest in and to all of the assets of the Pressure Pumping Business and Wireline
Business of the Sellers, other than the Excluded Assets, including (collectively, the
“Purchased Assets”):

(a) the Equipment and Machinery;

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(b) the Assumed Contracts;

(c) the Vehicles;

(d) the Transferred Owned Real Property;

(e) the Transferred Leases;

(f) the Transferred Intellectual Property;

(g) the Transferred Permits, to the extent lawfully transferable;

(h) the Inventory;

(i) the Records related to the Purchased Assets and the Assumed Obligations;

(j) all Claims, demands and judgments of Sellers of whatever nature and whether known or
unknown, arising under or related to the Purchased Assets against third parties, including
insurance claims and manufacturer’s equipment or construction warranties, in each case arising or
attributable to the period before the Effective Time that relate to or arise out of operation of
the Purchased Assets, to the extent that the same do not otherwise relate to Excluded Assets or
Retained Liabilities; and

(k) the goodwill of the Purchased Business.

The Purchased Assets will be transferred to Buyer free of any and all Liens, other than
Permitted Liens.

Section 2.2 Instruments of Conveyance and Transfer. Each Seller agrees that it will
execute, acknowledge and deliver to Buyer such good and sufficient instruments of sale, conveyance,
transfer and assignment as shall be effective to vest in Buyer all right, title and interest in and
to the Purchased Assets, free and clear of all Liens, other than Permitted Liens.

Section 2.3 Excluded Assets. The assets of Sellers on the Closing Date that are
listed below shall be excluded from the Purchased Business (the “Excluded Assets”) and
shall be retained by Sellers and shall not be transferred to or purchased by Buyer:

(a) the Accounts Receivable and other categories of current assets of the Purchased Business,
including cash, notes receivable and prepaid current assets, that would exist on a balance sheet
of the Purchased Business prepared in accordance with GAAP as of the Effective Time consistent
with past practices, but excluding the Inventory;

(b) the Capital Stock of any person, including Key Energy Services S.A.;

(c) any Marks, including the Retained Marks;

(d) any assets related to the coiled tubing services business of Seller A;

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(e) any assets (other than the Transferred Intellectual Property) related to any operations
outside of the United States or in the State of California;

(f) any bank, brokerage and similar accounts and any cash or cash equivalents therein;

(g) any agreement, note or instrument between Seller A and Geostream Services Group LLC or
any of its Affiliates;

(h) Sellers’ rights under this Agreement and the other Transaction Documents;

(i) all Records exclusively related to the Excluded Assets and the Retained Liabilities;

(j) any Tax refund related to the Purchased Assets or the Purchased Business for any Tax
period (or portion thereof) ending on or prior to the Closing Date;

(k) any Shared Use Assets; and

(l) those assets set forth on Schedule 2.3(l).

Section 2.4 Buyer’s Assumed Obligations. Buyer hereby agrees to assume, pay and
discharge, when due, the following Liabilities related to the Purchased Business and the Purchased
Assets (such assumed Liabilities being referred to as the “Assumed Obligations”):

(a) all Liabilities (other than Environmental Liabilities) under the Assumed Contracts
(including the leases associated with the Transferred Leased Real Property), and all Liabilities
under the Transferred Permits, in each case, to the extent relating to or arising from events,
facts or circumstances arising or occurring following the Effective Time;

(b) all Liabilities (other than Environmental Liabilities) associated with the Purchased
Assets or Purchased Business to the extent relating to or arising from events, facts or
circumstances arising or occurring following the Effective Time;

(c) all Environmental Liabilities relating to or arising from the ownership, operation or use
of the Purchased Assets or Purchased Business at the Transferred Real Property, in each case
arising from events, facts or circumstances arising or occurring before the Effective Time, except
to the extent the same are Retained Liabilities as set forth in Section 2.5(e),
(g) or (h);

(d) all Environmental Liabilities arising from Buyer’s operation or use of the Purchased
Assets or Purchased Business to the extent relating to or arising from events, facts or
circumstances arising or occurring after the Effective Time;

(e) the employment-related Liabilities assumed by or allocated to Buyer pursuant to Section
8.4; and

(f) the Liabilities for Taxes allocated to Buyer pursuant to Article IX.

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Section 2.5 Retained Liabilities. Buyer shall not be liable for and shall not assume
any, and Sellers hereby jointly and severally agree to pay and discharge, when due, all Liabilities
associated with the Purchased Assets and the Purchased Business other than the Assumed Obligations
(collectively, the “Retained Liabilities”), including:

(a) any Liabilities associated with the Excluded Assets;

(b) any current liabilities related to the Purchased Business, including accounts and notes
payable, customer deposits and accrued expenses, sales taxes payable, accrued payroll and payroll
taxes and other current accrued liabilities that would exist on a balance sheet of the Purchased
Business prepared in accordance with GAAP as of the Effective Time consistent with past practices;

(c) all Liabilities associated with the items listed or described in Schedule 4.17;

(d) all Liabilities (other than Environmental Liabilities) under the Assumed Contracts and
Transferred Leases to the extent relating to or arising from events, facts or circumstances
arising or occurring prior to the Effective Time;

(e) any fines or penalties arising from or related to the failure of Sellers or any of their
Affiliates to comply with applicable Environmental Laws or Environmental Permits, or the failure
to obtain an Environmental Permit, in each case prior to the Effective Time;

(f) (Reserved)

(g) all Environmental Liabilities in connection with the off-site shipment, transfer,
treatment, recycling, storage or disposal of Hazardous Materials generated from the operations of
any of the Transferred Real Property, the Purchased Assets or the Purchased Business prior to the
Effective Time;

(h) all Environmental Liabilities in connection with the operation of the Transferred Real
Property, Purchased Assets or Purchased Business by Sellers or any of their Affiliates to the
extent relating to or arising from events, facts or circumstances arising or occurring before the
Effective Time, other than all costs of Remedial Action arising from or related to the Release of
Hazardous Materials at the Transferred Real Property prior to the Effective Time;

(i) all Liabilities associated with the Seller Plans and any other employment-related
Liabilities retained by or allocated to Sellers pursuant to Section 8.4; and

(j) except as otherwise provided in Article IX, any and all Liabilities for Taxes of
Sellers, including any and all Liabilities for Taxes related to the Purchased Business or the
Purchased Assets for any Tax period (or portion thereof) ending on and including, or before, the
Closing Date.

For the avoidance of doubt, nothing in this Section 2.5 shall nullify or otherwise
limit Sellers’ obligations and agreements in Section 13.3(a) of this Agreement.

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Section 2.6 Purchase Price. The aggregate purchase price for the Purchased Assets
shall be $237,700,000 (the “Purchase Price”), which shall be payable in cash by Buyer to
Sellers, as adjusted pursuant to Section 2.9 and the other applicable sections hereof.

Section 2.7 Allocation of Purchase Price. For Tax purposes, Buyer and Sellers agree
to allocate the Purchase Price and the Assumed Obligations among the Purchased Assets in accordance
with the procedures set forth on Schedule 2.7 (such allocation of the Purchase Price and
the Assumed Obligations is referred to herein as the “Asset Allocation”). Buyer and
Sellers further agree to comply with all filing, notice and reporting requirements described in
Section 1060 of the Code and the Treasury Regulations promulgated thereunder, including the timely
preparation and filing of Form 8594 based on the Asset Allocation. Buyer and Sellers hereby agree
that they will report the federal, state, foreign and other Tax consequences of the transactions
contemplated by this Agreement in a manner consistent with the Asset Allocation.

Section 2.8 Preparation of Inventory Certificate.

(a) Within 90 days after the Closing Date, Sellers will cause to be prepared and delivered to
Buyer a calculation of the value of the Closing Date Inventory together with a certificate setting
forth Sellers’ calculation of Closing Date Inventory (the “Inventory Certificate”) and
include a worksheet which demonstrates in reasonable detail how such amount was calculated. The
calculation of the value of the Closing Date Inventory shall be done as of the Effective Time in
accordance with GAAP and, to the extent consistent with GAAP, in accordance with the methods used
to prepare the Balance Sheet.

(b) If Buyer disagrees with Sellers’ calculation of Closing Date Inventory set forth in the
Inventory Certificate and such disagreement results in a discrepancy that exceeds $50,000, Buyer
may, within 30 days after delivery of the Inventory Certificate, deliver a notice to Sellers
disagreeing with such calculation. Any such notice of disagreement shall specify those items or
amounts as to which Buyer disagrees and its proposed computation of Closing Date Inventory. Buyer
shall be deemed to have agreed with all other items and amounts contained in the Inventory
Certificate.

(c) If a notice of disagreement shall be duly delivered pursuant to Section 2.8(b),
Buyer and Sellers shall, during the 30 days following such delivery, negotiate reasonably and in
good faith to reach agreement on the items or amounts disputed by Buyer in Buyer’s notice of
disagreement. If, during such 30 day period, Buyer and Sellers are unable to reach such agreement,
either party may thereafter cause the Designated Accountants to review this Agreement and the
disputed items or amounts for the purpose of calculating Closing Date Inventory. In making such
calculation, the Designated Accountants shall consider only those items or amounts in the Inventory
Certificate and worksheet or in Buyer’s calculation of Closing Date Inventory as to which Buyer has
disagreed in the notice of disagreement delivered pursuant to Section 2.8(b) and for which
no agreement has been reached during the 30 day period provided for above. Such Designated
Accountants shall deliver to Buyer and Sellers, as promptly as practicable, a report setting forth
such calculation. Such report shall be final and binding upon Buyer and Sellers. The cost of such
Designated Accountants’ review and report shall be borne (i) by Buyer if the difference between
Final Closing Date Inventory and Buyer’s calculation of Closing Date Inventory delivered pursuant
to Section 2.8(b) is greater than the

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difference between Final Closing Date Inventory and Sellers’ calculation of Closing Date
Inventory set forth in the Inventory Certificate, (ii) by Sellers if the first such difference is
less than the second such difference and (iii) otherwise, equally by Buyer, on the one hand, and
Sellers, on the other.

(d) Buyer and Sellers shall cooperate and assist each other in the preparation of the
calculation of Closing Date Inventory and in the conduct of the audits and reviews referred to in
this Section 2.8, including the making available to the extent necessary of relevant
Records and personnel. Buyer and its representatives shall be permitted to review Sellers’ working
papers and any working papers of Sellers’ independent accountants, if any, directly relating to the
preparation of the Closing Date Inventory and the Inventory Certificate, and shall make reasonably
available the individuals in their employ directly responsible for and knowledgeable about the
information used in, and the preparation or calculation (as applicable) of the Closing Date
Inventory and the Inventory Certificate in order to respond to the reasonable inquiries of Buyer.

Section 2.9 Post-Closing Payments and Adjustments to Purchase Price. Within 5 days
after Final Closing Date Inventory has been determined, either by the passage of 30 days following
delivery of the Inventory Certificate without the delivery by Buyer of a notice of disagreement or,
following resolution of such notice of disagreement, in accordance with Section 2.8(c), (i)
Sellers shall, if Final Closing Date Inventory is less than Base Inventory, jointly and severally
pay to Buyer the amount of such deficiency or (ii) Buyer shall, if Final Closing Date Inventory
exceeds Base Inventory, pay to Sellers the amount of such excess, either such payment to be made by
wire transfer of immediately available funds.

ARTICLE III

CLOSING

Section 3.1 Closing. The closing (the “Closing”) of the purchase and sale of
the Purchased Assets and the assumption of the Assumed Obligations shall be held at the offices of
Bracewell & Giuliani LLP, 711 Louisiana Street, Suite 2300, Houston, Texas, at 9:00 a.m. on
September 3, 2010, or, if the conditions to the Closing set forth in Articles X and
XI shall not have been satisfied by such date, as soon as practicable after such conditions
shall have been satisfied. The date on which the Closing shall occur is hereinafter referred to as
the “Closing Date.”

Section 3.2 Deliveries by Buyer to Sellers. At the Closing, Buyer shall deliver or
cause to be delivered to Sellers:

(a) the Purchase Price by wire transfer of immediately available funds to such account or
accounts as Sellers shall have specified in writing to Buyer prior to the Closing Date;

(b) the Assumption Agreement duly executed by Buyer pursuant to which Buyer assumes the
Assumed Obligations;

(c) the Transition Services Agreement duly executed by Buyer;

(d) the Buyer Lease Agreement duly executed by Buyer;

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(e) the Seller Lease Agreements duly executed by Buyer; and

(f) all other documents, instruments and writings required to be delivered by Buyer at or
prior to the Closing pursuant to this Agreement (including Section 11.1) or otherwise
reasonably requested by Sellers in connection herewith.

Section 3.3 Deliveries by Sellers to Buyer. At the Closing, Sellers shall deliver or
cause to be delivered to Buyer:

(a) bills of sale and other necessary instruments of transfer to validly vest in Buyer the
Purchased Assets on the Closing Date free and clear of all Liens other than Permitted Liens;

(b) counterparts to the Assumption Agreement duly executed by each Seller;

(c) counterparts to the Transition Services Agreement duly executed by each Seller and Seller
Parent;

(d) counterparts to the Buyer Lease Agreement duly executed by the applicable Affiliate of
Sellers;

(e) counterparts to the Seller Lease Agreements duly executed by the applicable Affiliate of
Sellers;

(f) a certificate of non-foreign status which meets the requirements of Treasury Regulation
Section 1.1445-2(b)(2) and is reasonably acceptable to Buyer duly executed by Seller Parent;

(g) assignments of the Transferred Leases executed by the applicable Seller with respect to
the Transferred Leased Property, in form and substance reasonably satisfactory to Buyer;

(h) all consents to assignments of the Assumed Contracts as have been obtained by Sellers as
of the Closing Date;

(i) the Title Policies;

(j) deeds conveying such title as the applicable Seller or its Affiliate received when it
acquired such properties, in form and substance reasonably satisfactory to Buyer, conveying the
Transferred Real Property to Buyer, free and clear of all Liens, other than Permitted Liens; and

(k) all other documents, instruments and writings required to be delivered by Sellers at or
prior to the Closing pursuant to this Agreement (including Section 10.1) or otherwise
reasonably requested by Buyer in connection herewith.

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES

AS TO SELLERS, SELLER PARENT AND THE PURCHASED BUSINESS

Except as set forth in the applicable portion of the Sellers’ Disclosure Schedules, each of
each Seller and Seller Parent, jointly and severally, as of the date hereof and as of the Closing
Date hereby represents and warrants to Buyer and Buyer Parent as follows:

Section 4.1 Organization. Seller A is a limited liability company duly organized,
validly existing and in good standing under the Laws of the State of Texas. Seller B is a limited
liability company duly organized, validly existing and in good standing under the Laws of the State
of Delaware. Seller Parent is a corporation duly organized, validly existing and in good standing
under the Laws of the State of Maryland.

Section 4.2 Power and Authority; Authorization; Enforceability. Each Seller and
Seller Parent has all necessary company power and authority to enter into and perform its
obligations under this Agreement and the other Transaction Documents to which it is a party and to
consummate the transactions contemplated hereby and thereby. This Agreement and each of the other
Transaction Documents have been duly authorized and have been, or in the case of the Transaction
Documents to be executed and delivered at the Closing, will be, duly executed and delivered by each
Seller and Seller Parent and constitute or, upon the execution and delivery thereof, will
constitute, valid and binding obligations of each Seller and Seller Parent, enforceable in
accordance with their respective terms, except as enforcement may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar Laws relating to or
affecting creditors’ rights generally and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at Law).

Section 4.3 No Conflicts; Consents. Except as set forth in Schedule 4.3, the
execution, delivery and performance by each Seller and Seller Parent of this Agreement and the
other Transaction Documents to which it is a party do not, and the consummation by each Seller of
the transactions contemplated hereby and thereby will not, result in any violation of or default
under (with or without notice or lapse of time, or both) any provision of (i) the Organizational
Documents of such Seller or Seller Parent, (ii) any Assumed Contract or (iii) any Contract to which
such Seller or Seller Parent is a party or by which any of its properties or assets are bound or
(iv) any Permit, Order or Law applicable to such Seller or Seller Parent or its properties or
assets, except in the cases of clauses (ii), (iii) and (iv) any such matter as would not reasonably
be expected to have a material adverse effect on (A) the business, financial condition, assets,
properties or results of operations of the Purchased Business, taken as a whole, or (B) the ability
of Sellers to consummate the transactions contemplated hereby. Except (i) for filings required
under the HSR Act and (ii) as set forth in Schedule 4.3, no Permit of, or registration,
declaration or filing with, any Governmental Authority or any other person is required to be
obtained or made by or with respect to Sellers or Seller Parent in connection with the execution,
delivery and performance of this Agreement and the other Transaction Documents or the consummation
of the transactions contemplated hereby and thereby other than any such matter the failure to
obtain or make which would not result in a Material Adverse Effect.

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Section 4.4 Litigation; Orders. There are no Orders or Legal Proceedings, whether
completed, pending or, to Sellers’ Knowledge, threatened, that question the validity of this
Agreement or any action taken or to be taken by Sellers or Seller Parent in connection with, or
which seek to enjoin or to obtain monetary damages in respect of, this Agreement or the
consummation by Sellers or Seller Parent of the transactions contemplated hereby or which otherwise
threaten Sellers’ or Seller Parent’s ability to consummate the transactions contemplated hereby.

Section 4.5 Fees. Neither Sellers nor Seller Parent has paid or become obligated to
pay any fee or commission to any broker, finder or intermediary in connection with the transactions
contemplated hereby for which Buyer shall have any liability or responsibility.

Section 4.6 Financial Statements; Liabilities.

(a) Schedule 4.6 contains complete and accurate copies of (i) the combined unaudited
financial statements (including a balance sheet and the related statement of income) of the
Purchased Business as of and for the years ended December 31, 2008 and December 31, 2009, and (ii)
the combined unaudited financial statements of the Purchased Business as of and for the interim
period ended April 30, 2010 (the “Balance Sheet Date”) (including a balance sheet as of
such date (the “Balance Sheet”) and the related statement of income for the 4-month period
then ended) (collectively the “Financial Statements”). The Financial Statements have been
prepared in accordance with generally accepted accounting principles (“GAAP”), applied on
a consistent basis, from the books and records of the Purchased Business and fairly present in all
material respects the financial condition and results of operations of the Purchased Business for
the periods indicated.

(b) Except (i) as set forth in the Financial Statements, (ii) for Liabilities and obligations
incurred in the ordinary course of business, consistent with past practice, since the date of the
Balance Sheet and (iii) for Liabilities that, individually or in the aggregate, would not result
in a Material Adverse Effect, there are no Liabilities of any of Sellers or the Purchased Business
as of the date hereof of any nature or type that would be required under GAAP to be reflected on a
financial statement of the Purchased Business.

Section 4.7 Absence of Changes or Events. Except as set forth in Schedule
4.7, since the Balance Sheet Date, there has not been any event, change or occurrence that
would result in a Material Adverse Effect, the Purchased Assets have been operated in the ordinary
and usual course consistent with past practices and Sellers have not taken any of the actions or
engaged in any of the conduct that is proscribed during the period from the date of this Agreement
to the Closing Date by Section 6.3.

Section 4.8 (Reserved)

Section 4.9 Inventory. The Inventory consists of raw materials and supplies,
manufactured and purchased parts, goods in process and finished goods, all of which is merchantable
and usable in the ordinary course of business, all of which has been reflected in the Balance Sheet
or accounting records of the Purchased Business as of the Closing Date in accordance with GAAP.
The quantities of each item of Inventory (whether raw materials and

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supplies, manufactured and purchased parts, goods in process or finished goods) are not
excessive, but are reasonable in the present circumstances of the Purchased Business. Each Seller
has good and valid title to its Inventory, free and clear of all Liens other than (i) Liens
securing the Credit Facility and (ii) Permitted Liens.

Section 4.10 Assumed Contracts. All of the Assumed Contracts identified on
Schedules 2.1(b)-1 and 2.1(b)-2 (i) are the legal, valid and binding obligations of
each Seller that is a party thereto and, to the Knowledge of Sellers and Seller Parent, the
counterparties thereto, (ii) are enforceable in accordance with their respective terms and (iii),
except as set forth on Schedule 4.10, include all of the Material Contracts that relate to
the Purchased Business, the Purchased Assets, the Transitioned Employees and the Assumed
Obligations. Sellers have performed in all material respects all obligations required to be
performed by them to date under each such Assumed Contract. Sellers are not (with or without the
lapse of time or the giving of notice, or both) in breach or default in any material respect under
any Assumed Contract, and have not received notice or have Knowledge that any counterparty to any
such Assumed Contract is alleging that a Seller is in breach or default thereunder. Except as
disclosed in Schedules 2.1(b)-1 and 2.1(b)-2, each of the Assumed Contracts is
assignable to Buyer without any action on the part of any Seller or the consent of any Person.

Section 4.11 Tax Matters.

(a) All Tax Returns required to be filed by or on behalf of Sellers, including with respect
to the Purchased Assets and the Purchased Business, have been duly filed on a timely basis and
such Tax Returns are complete and correct in all material respects. All Taxes owed by Sellers
(whether or not shown to be due and payable on any Tax Return), including with respect to the
Purchased Assets and the Purchased Business, have been timely paid in full.

(b) None of the Purchased Assets is subject to any Lien (other than Permitted Liens) for any
Tax.

(c) There are no audits, examinations, investigations or Claims pending, or to the Knowledge
of Sellers, threatened, with respect to Taxes involving or relating to any Seller, the Purchased
Assets or the Purchased Business. No Claim has been made by any Taxing Authority in any
jurisdiction where any Seller does not file Tax Returns that any Seller is or may be subject to
taxation by that jurisdiction with respect to the Purchased Assets or the Purchased Business, and
there is no basis for any such Claim to be made.

(d) Each Seller has withheld or collected and paid over to the appropriate Taxing Authority
all Taxes required by applicable Law to be withheld or collected, including withholding of Taxes
pursuant to Sections 1441 through 1464, 3401 through 3406, 6041 and 6049 of the Code and similar
provisions under any state, local or foreign Law, and each Seller has properly received and
maintained any and all certificates, forms and other documents required by applicable Law for any
exemption from withholding and remitting any Taxes.

(e) No Seller owns an interest in real property that as a result of the consummation of the
transactions contemplated by this Agreement would result in the imposition of any realty transfer
Tax or similar Tax.

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Notwithstanding anything to the contrary set forth in this Article IV, this Section
4.11 and Section 4.21 contain the sole and exclusive representations and warranties of
Sellers relating to Taxes.

Section 4.12 Sufficiency and Condition of and Title to Purchased Assets. Sellers own
and have, or on the Closing Date will own and have, valid title, or otherwise have legally
enforceable rights to use, all of the Purchased Assets (other than the Transferred Real Property,
which is the subject of Section 4.14, and the Transferred Intellectual Property, which is
the subject of Section 4.15). Except as set forth in Schedule 4.12, the Purchased
Assets constitute in all material respects the assets necessary for the conduct of the Purchased
Business as conducted by Sellers during the 12 months prior to the date hereof, subject to the
understanding that the Purchased Assets do not include master service agreements with customers,
the Shared Use Assets, or all of the personnel and assets that provide administrative and similar
support services for the Purchased Business. Except for Scrap Equipment and as set forth in
Schedule 4.12, the Equipment and Machinery and Vehicles included in the Purchased Assets
having a replacement cost in excess of $100,000 are in good operating condition, repair and working
order, subject to ordinary wear and tear and to occasional mechanical failures not inconsistent in
scope or frequency with those experienced by others in the industry, are usable in the Purchased
Business for the purposes for which they are intended, and have been maintained in accordance with
industry practice.

Section 4.13 Equipment and Machinery and Vehicles. Sellers own all of the Equipment
and Machinery and the Vehicles, free and clear of all Liens, other than (i) Liens securing the
Credit Facility, (ii) Permitted Liens and (iii) Liens that will be released at or prior to the
Effective Time. The maintenance records provided to Buyer by Sellers in respect of the Equipment
and Machinery and Vehicles are true and correct in all material respects. Nothing has occurred to
the Equipment and Machinery or the Vehicles since the Balance Sheet Date that would have a Material
Adverse Effect. Since the Balance Sheet Date, no Equipment and Machinery or Vehicles have been
sold or disposed of except through sales in the ordinary course of business.

Section 4.14 Real Property. The applicable Seller has, in the case of real property
located in the state of Texas, good and indefeasible title and, in the case of real property
located elsewhere, good and marketable title to the fee or leasehold estates (as applicable) in all
Transferred Owned Real Property and Transferred Leased Real Property, in each case free and clear
of all Liens other than Permitted Liens. Each of the Transferred Leases is valid, in full force
and effect and is enforceable against the landlord that is party thereto in accordance with its
terms. There exists no default or event of default on the part of any Seller or any of its
Affiliates or, to the Knowledge of Sellers, on the part of any other party under any of the
Transferred Leases. Sellers have made available to Buyer complete and correct copies of all
Transferred Leases, including any and all amendments or modifications thereto, and no term or
condition of any of the Transferred Leases has been waived, modified or amended except as reflected
in such copies. Each of the Transferred Leases constitutes the entire agreement of the landlord
and tenant thereunder. There are no pending or, to the Knowledge of Sellers, threatened
condemnation proceedings or other Legal Proceedings relating to any Transferred Owned Real Property
or Transferred Leased Real Property or other matters affecting materially and adversely the current
use, occupancy or value thereof and there are no Contracts (other than Permitted Liens) granting to
any party or parties other than Sellers the right of use or occupancy of any

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such parcel, and there are no parties other than Sellers in possession of any such parcel.
There are no outstanding options, rights of first offer or rights of first refusal to purchase the
Transferred Owned Real Property or, to the Knowledge of Sellers and Seller Parent, the Transferred
Leased Real Property or any portion thereof or interest therein other than in favor of Sellers,
which such purchase options and rights shall be fully and unconditionally assigned to Buyer at
Closing.

Section 4.15 Intellectual Property.

(a) Sellers or their applicable Affiliates own the Transferred Intellectual Property or, to
the Knowledge of Sellers, have valid licenses to use same free and clear of all Liens, other than
(i) Liens securing the Credit Facility and (ii) Permitted Liens.

(b) There are no Claims or Legal Proceedings pending or, to the Knowledge of Sellers,
threatened, alleging that the Purchased Business infringes, misappropriates, misuses, interferes
with or otherwise violates any Intellectual Property of any other person and, to the Knowledge of
Sellers, there is no basis for any such Claim. To the Knowledge of Sellers, the operation of the
Purchased Business as currently conducted has not and does not infringe, misappropriate, misuse,
interfere with or otherwise violate any Intellectual Property of any other person. To the
Knowledge of Sellers, no third person has infringed, misappropriated, misused, interfered with or
otherwise violated any of the Transferred Intellectual Property.

(c) With respect to each item of Transferred Intellectual Property, (i) the item is in good
standing and, to the Knowledge of Sellers, is valid and enforceable; (ii) all registrations for
copyrights and patent rights included in the Transferred Intellectual Property as set forth in
Schedule 2.1(f) are in full force and, to the Knowledge of Sellers, valid; (iii) no
action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand is pending,
or to the Knowledge of Sellers, threatened, that challenges the legality, validity,
enforceability, registration, use or ownership of the Transferred Intellectual Property; and (iv)
except as set forth in Schedule 2.1(f), the applicable Seller has the sole and exclusive
right to bring actions for infringement, misappropriation or unauthorized use of the item.

Section 4.16 Compliance with Laws. Except as set forth in Schedule 4.16, each
Seller is in compliance in all material respects with all Laws applicable to such Seller or to the
conduct of its business or operations that are included in the Purchased Business or the use of its
assets that are included in the Purchased Assets. Neither Seller has received any written
communication during the past three years from a Governmental Authority or other Person that
remains unresolved that alleges that the operation of the Purchased Assets is not in compliance in
any material respect with, or may be subject to liability under, any Laws. This Section
4.16 does not relate to Tax matters, which are instead the subject of Section 4.11, to
employment and employee benefits matters, which are instead the subject of Sections 4.20 and
4.21, or to environmental, health and safety matters, which are instead the subject of
Section 4.22.

Section 4.17 Legal Proceedings; Orders. Schedule 4.17 describes all Legal
Proceedings and, to Sellers’ Knowledge, all inquiries or investigations by any Governmental
Authority pending or threatened against a Seller related to the Purchased Business, the Purchased
Assets, the Transitioned Employees or the Assumed Obligations. No Seller is a party or subject to
or in

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default under any Order of any Court or Governmental Authority applicable to the Purchased
Assets that would result in a Material Adverse Effect. Except as set forth in Schedule
4.17, as of the date of this Agreement, there are no Legal Proceedings by a Seller pending
against any other person related to the Purchased Business, Purchased Assets, Transitioned
Employees or the Assumed Obligations. Except as set forth in Schedule 4.17, to the
Knowledge of Sellers, there is no pending or threatened inquiry or investigation of or affecting a
Seller by any Governmental Authority related to the Purchased Assets or the Purchased Business and
neither Seller has received written notice from any Governmental Authority that any such inquiry or
investigation is contemplated.

Section 4.18 Permits. Except as set forth in Schedule 4.18, all Transferred
Permits are validly held by the applicable Seller, and, except as set forth in Schedule
4.10, are all of the material Permits which are required for such Seller to conduct its
business that is included in the Purchased Business, and such Seller has complied in all material
respects with all terms and conditions thereof.

Section 4.19 Employees. Schedule 4.19 lists as of the date indicated therein
all employees of Sellers and their Affiliates that work in the Purchased Business (the
“Business Employees”), their applicable employer entity and the rates of pay for each and
whether any such employees are absent from active employment, including leave of absence or
disability.

Section 4.20 Labor and Employment Matters.

(a) Except as set forth in Schedule 4.20, (A) none of the Business Employees are
represented by a labor union, (B) to the Knowledge of Sellers, no union organizational campaign is
in progress with respect to the Business Employees and no labor organizing activities, no demand
by any labor organization for recognition and no petition by a labor organization to be the
exclusive bargaining agent for any Business Employees has been made or has occurred, and (C) there
are no pending, or, to the Knowledge of Sellers, threatened, charges against a Seller or any
current or former employee of a Seller before the Equal Employment Opportunity Commission or any
state or local agency responsible for the prevention of unlawful employment practices.

(b) Each Seller is, and since January 1, 2007, has been, in compliance in all material
respects with all Laws relating to the employment of individuals by or with respect to such
Seller, including but not limited to those Laws relating to wages, hours, concerted activity,
non-discrimination, fair employment practices, termination of employment, terms and conditions of
employment, facility closures and layoffs and notice thereof, hiring of non-United States
citizens, occupational health and safety and the payment and withholding of employment-related
Taxes.

Notwithstanding anything to the contrary set forth in this Article IV, this
Section 4.20 contains the sole and exclusive representations and warranties of Sellers
relating to labor and employment matters.

Section 4.21 Employee Benefits. Neither Seller maintains or sponsors any Employee
Benefit Plan. Neither of either Seller nor any Commonly Controlled Entity of either Seller

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sponsors, maintains or contributes to or has an obligation to contribute to any Employee
Benefit Plan that is subject to Section 412 of the Code, Section 302 of ERISA or Title IV of ERISA,
and neither of either Seller nor any Commonly Controlled Entity of either Seller has within the
last six years contributed to, had an obligation to contribute to or had any liability with respect
to, any such Employee Benefit Plan. No event has occurred or could reasonably be expected to occur
that would subject Buyer to any liability, Tax, fine, Lien, penalty or other obligation with
respect to an Employee Benefit Plan sponsored, maintained or contributed to by either Seller or any
Commonly Controlled Entity of either Seller imposed by ERISA, the Code or other applicable Law.

Notwithstanding anything to the contrary set forth in this Article IV, this
Section 4.21 contains the sole and exclusive representations and warranties of Sellers
relating to employee benefit matters and the absence of liabilities with respect thereto.

Section 4.22 Environmental Matters. Except as set forth in Schedule 4.22:

(a) Sellers have obtained all Environmental Permits necessary for the ownership and operation
of the Purchased Assets and the conduct of the Purchased Business in compliance with Environmental
Laws and Environmental Permits, except as would not reasonably be expected to have an
Environmental Material Adverse Effect. All such Environmental Permits are valid and in full force
and effect, and Sellers are and have been since January 1, 2007 in compliance with the terms and
conditions of such Environmental Permits except as would not reasonably be expected to have an
Environmental Material Adverse Effect;

(b) Sellers’ ownership, use and operation of the Purchased Assets and Seller’s conduct of the
Purchased Business are and have been since January 1, 2005 in compliance with applicable
Environmental Laws, and since January 1, 2005 no Environmental Liability has been asserted, filed,
commenced, or in writing threatened against Sellers with respect to the ownership or operation of
the Purchased Assets or Sellers’ conduct of the Purchased Business, in each case except as would
not reasonably be expected to have an Environmental Material Adverse Effect;

(c) No Release has occurred or is occurring at, on, in or under, and, to the Knowledge of
Sellers, no Environmental Conditions existed or exists at, on, in or under, the Transferred Real
Property, for which Environmental Law requires (i) notice to any Person; (ii) further
investigation; or (iii) any form of response or Remedial Action;

(d) There are no pits, ponds, impoundments, lagoons or other similar areas located on any
Transferred Real Property in which Sellers have disposed any Hazardous Materials;

(e) Sellers have not installed any underground storage tank at the Transferred Real Property
and, to Sellers’ Knowledge, no underground storage tank is located at any Transferred Real
Property;

(f) There are no Orders or Legal Proceedings pending, or to Sellers’ Knowledge, threatened,
against Sellers arising under any Environmental Law or relating to any

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Environmental Condition, except as would not reasonably be expected to have an Environmental
Material Adverse Effect;

(g) With respect to Sellers’ ownership or operation of the Purchased Assets or Sellers’
conduct of the Purchased Business, Sellers have not disposed of, sent or arranged for the
transportation of Hazardous Materials at or to a site that pursuant to any Environmental Law has
been placed or is proposed to be placed by the United States Environmental Protection Agency or
similar state authority on the National Priorities List or similar state list, as in effect as of
the Closing Date; and

(h) Sellers have identified and made available to Buyer every environmental investigation,
study, audit, test and other analysis conducted by or for or in the possession of Sellers with
respect to the ownership or operation of the Purchased Assets or Seller’s conduct of the Purchased
Business (which reports are collectively referred to as “Environmental Reports” and are
identified on Schedule 4.22).

Notwithstanding anything to the contrary set forth in this Article IV, this
Section 4.22 contains the sole and exclusive representations and warranties of Sellers
relating to environmental matters.

Section 4.23 Exclusive Representation. EXCEPT AS AND TO THE EXTENT SET FORTH IN THIS
ARTICLE IV, SELLERS MAKE NO REPRESENTATIONS OR WARRANTIES WHATSOEVER TO BUYER. AND SELLERS
HEREBY EXPRESSLY DISCLAIM AND NEGATE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT COMMON
LAW, BY STATUTE, OR OTHERWISE, RELATING TO THE CONDITION OF THE PURCHASED BUSINESS OR PURCHASED
ASSETS (INCLUDING ANY IMPLIED OR EXPRESS WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR NON-INFRINGEMENT).

ARTICLE V

REPRESENTATIONS AND WARRANTIES AS TO BUYER AND BUYER PARENT

Each of Buyer and Buyer Parent, jointly and severally, hereby represents and warrants to
Sellers and Seller Parent as follows:

Section 5.1 Existence. Buyer is a corporation, duly organized, validly existing and
in good standing under the Laws of the State of Delaware. Buyer Parent is a corporation, duly
organized, validly existing and in good standing under the Laws of the State of Delaware.

Section 5.2 Power and Authority; Authorization; Enforceability. Each of Buyer and
Buyer Parent has all necessary company power and authority to enter into and perform its
obligations under this Agreement and the other Transaction Documents to which it is a party and to
consummate the transactions contemplated hereby and thereby. This Agreement and each of the other
Transaction Documents have been duly authorized and have been, or in the case of the Transaction
Documents to be executed and delivered at the Closing, will be duly executed and delivered by
Buyer and Buyer Parent and constitute, or, upon the execution and delivery thereof, will
constitute, valid and binding obligations of Buyer and Buyer Parent, enforceable in accordance with
their respective terms, except as enforcement may be limited by bankruptcy,

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insolvency, fraudulent transfer, reorganization, moratorium and similar Laws relating to or
affecting creditors’ rights generally and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at Law).

Section 5.3 No Conflicts; Consents. The execution, delivery and performance by each
of Buyer and Buyer Parent of this Agreement and the other Transaction Documents to which it is a
party do not, and the consummation of the transactions contemplated hereby and thereby will not,
result in any violation of or default under (with or without notice or lapse of time, or both), any
provision of (i) the Organizational Documents of Buyer or Buyer Parent, (ii) any material Contract
to which Buyer or Buyer Parent is a party or by which any of its properties or assets are bound or
(iii) any Permit, Order or Law applicable to Buyer or Buyer Parent or its properties or assets
other than, in the case of clauses (ii) and (iii) any such items that, individually or in the
aggregate, would not have a material adverse effect on the ability of Buyer or Buyer Parent to
consummate the transactions contemplated hereby. Except for filings required under the HSR Act and
any Permits necessary to operate the Purchased Business, no Permit of, or registration, declaration
or filing with, any Governmental Authority or any other person is required to be obtained or made
by or with respect to Buyer or Buyer Parent in connection with the execution, delivery and
performance of this Agreement and the other Transaction Documents or the consummation of the
transactions contemplated hereby and thereby.

Section 5.4 Litigation; Orders. There are no Orders or Legal Proceedings, whether
completed, pending or, to the Knowledge of Buyer or Buyer Parent, threatened, that question the
validity of this Agreement or any action taken or to be taken by Buyer or Buyer Parent in
connection with, or which seek to enjoin or to obtain monetary damages in respect of, this
Agreement or the consummation by Buyer or Buyer Parent of the transactions contemplated hereby or
which otherwise threaten Buyer’s or Buyer Parent’s ability to consummate the transactions
contemplated hereby.

Section 5.5 Fees. Neither Buyer nor Buyer Parent has paid or become obligated to pay
any fee or commission to any broker, finder or intermediary in connection with the transactions
contemplated hereby for which Sellers or their Affiliates shall have any liability or
responsibility.

Section 5.6 Financing. Buyer, through Buyer Parent or otherwise, has, or will have,
sufficient cash, available lines of credit or other sources of immediately available funds to
enable it to make payment of the Purchase Price at Closing and all related fees and expenses and to
otherwise consummate the transactions contemplated hereby at Closing. Buyer acknowledges that
obtaining financing is not a condition to closing.

ARTICLE VI

COVENANTS OF SELLERS

Sellers covenant and agree as follows:

Section 6.1 Access.

(a) From the date hereof through the Closing Date (a period not less than 60 days from the
date hereof) and upon reasonable advance notice from Buyer, Sellers will allow

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Buyer and its Representatives full access during normal business hours to, and will furnish
them with, all documents, records, work papers and information with respect to the Purchased
Business and the Purchased Assets as Buyer may reasonably request; provided,
however, that such physical access to the properties owned and operated by Sellers in
relation to environmental matters shall be subject to Section 6.1(b).

(b) From the date hereof through the thirtieth business day prior to the Closing Date and
subject to the terms and conditions set forth in this Section 6.1 and Section 6.2,
Buyer and its Representatives shall have the right to conduct in relation to the Transferred Real
Property a Phase I Environmental Site Assessment conforming to ASTM E-1527-05 using such licensed
and reputable consultant as shall be previously approved by Sellers, provided that such approval
shall not be unreasonably withheld or delayed by Sellers (a “Phase I ESA”), which may
include, if Buyer so desires, a limited compliance assessment. No later than twenty (20) days
prior to the Closing Date, Buyer shall provide each Phase I ESA to Sellers. If such Phase I ESA
identifies and describes a Potentially Material Environmental Condition and includes a
recommendation to perform additional assessment or investigation at any Transferred Real Property,
Sellers shall have the right within five (5) business days of receipt of the Phase I ESA to remove
such Transferred Real Property from the Purchased Assets to be conveyed to Buyer under this
Agreement; provided, however, that if such Transferred Real Property is a parcel
of Transferred Owned Real Property, then the Purchase Price shall be reduced at Closing by the
Allocated Value attributable to such Transferred Owned Real Property set forth in Schedule
6.1; and further provided that if any such Transferred Real Property is a
Critical Property, then Sellers shall pay to Buyer, within 30 days of being invoiced therefor, the
reasonably incurred moving expenses to transfer any Purchased Assets, other than Immovable
Fixtures, associated with such Critical Property to an alternative facility selected by Buyer
within 100 miles of such Critical Property. If Sellers do not notify Buyer of the removal of such
Transferred Real Property from the Purchased Assets to be conveyed to Buyer within five (5)
business days of receipt of the Phase I ESA, Buyer shall have the further right to conduct a
subsurface investigation (“Phase II ESA”) limited to the Potentially Material
Environmental Condition so described using a licensed and reputable consultant previously approved
by Sellers, provided that such approval shall not be unreasonably withheld or delayed by Sellers.

(i) All environmental assessments of the Transferred Real Property by Buyer and its
Representatives shall be conducted in the presence of a Representative of Sellers, and shall be
conducted at Buyer’s sole cost and expense. Buyer shall indemnify, defend and hold harmless Seller
from and against all costs, loss, damage, liability and expense, including reasonable attorneys’
fees, relating to or arising from the activities Buyer or Buyer’s Representatives conducted
pursuant to this Section 6.1(b);

(ii) Buyer shall not conduct any invasive testing at any Transferred Real Property prior to
providing Sellers with a copy of the relevant Phase I ESA, a written description of the proposed
invasive testing, and a reasonable period of time to provide comments, which Buyer agrees to
consider in good faith, provided that approval to conduct any recommended Phase II ESA invasive
testing shall not be unreasonably withheld or delayed by Sellers. For any invasive sampling,
Sellers shall have the right, but not the obligation, to take split samples;

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(iii) For Buyer’s environmental assessment activities, Sellers will provide reasonable access
to the Transferred Owned Real Property; for the Transferred Leased Real Property, Sellers will
reasonably cooperate with Buyer in contacting the owners of the Transferred Leased Real Property
directly to attempt to arrange for access for the purposes of environmental assessment;

(iv) Unless and until Closing occurs, unless otherwise required by Environmental Law, Buyer
will not disclose the results of its environmental assessment activities to any Governmental
Authority; provided, however, that if Buyer is compelled to disclose such results
then Buyer shall notify Sellers not less than fourteen (14) days in advance of any such disclosure
and will simultaneously furnish Sellers and their counsel with copies of all materials to be
disclosed and shall at the expense of Sellers use reasonable efforts to assist counsel in resisting
and/or preparing to make such disclosure; and

(v) While performing any Phase I ESA or Phase II ESA, Buyer and its Representatives must
comply with Sellers’ written environmental and safety rules and policies at any Transferred Owned
Real Property, and with the third-party owner’s written environmental and safety rules and policies
at any Transferred Leased Real Property, to the extent copies of such rules and policies are
provided to Buyer and its Representatives in advance of such activities.

Section 6.2 Environmental Defects.

(a) No later than the Environmental Defect Notice Date, Buyer may deliver to Sellers an
Environmental Defect Notice for any Potentially Material Environmental Condition confirmed by a
Phase II ESA prepared pursuant to Section 6.1. Such Environmental Defect Notice must (i)
be in writing and received on or before the Environmental Defect Notice Date, (ii) name the
affected Transferred Real Property, (iii) name the condition in, on or under the Transferred Real
Property that causes the Potentially Material Environmental Condition, including the approximate
date the Potentially Material Environmental Condition commenced, and (iv) provide factual
substantiation for the Potentially Material Environmental Condition.

(b) Within ten (10) business days from receiving an Environmental Defect Notice, Seller shall
elect (i) to conduct Remedial Action necessary to address the Potentially Material Environmental
Condition identified in the Environmental Defect Notice or (ii) to remove the Transferred Real
Property identified by Buyer in an Environmental Defect Notice from the Purchased Assets to be
conveyed to Buyer under this Agreement. If Sellers elect to remove such Transferred Real Property
from the Purchased Assets to be conveyed to Buyer under this Agreement and such Transferred Real
Property is a parcel of Transferred Owned Real Property, then the Purchase Price shall be reduced
at Closing by the Allocated Value attributable to such asset. If such Transferred Real Property is
a Critical Property, then Sellers shall pay to Buyer, within 30 days of being invoiced therefor,
the reasonably incurred moving expenses to transfer any Purchased Assets, other than Immovable
Fixtures, associated with such Critical Property to an alternative facility selected by Buyer
within 100 miles of such Critical Property.

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(c) Prior to Closing, Sellers and Buyer shall meet to discuss and agree upon the scope of
work to address any Remedial Actions required as a result of Environmental Conditions set forth in
the Environmental Defect Notice. If Buyer and Sellers cannot agree upon the scope of work to
address the same, Buyer or Sellers shall have the right to remove the affected Transferred Real
Property from the Purchased Assets to be conveyed to Buyer under this Agreement provided,
however, that if such Transferred Real Property is a parcel of Transferred Owned Real
Property, then the Purchase Price shall be reduced at Closing by the Allocated Value attributable
to such Transferred Owned Real Property set forth in Schedule 6.1; and further
provided that if any such Transferred Real Property is a Critical Property, then Sellers
shall pay to Buyer, within 30 days of being invoiced therefor, the reasonably incurred moving
expenses to transfer any Purchased Assets, other than Immovable Fixtures, associated with such
Critical Property to an alternative facility selected by Buyer within 100 miles of such Critical
Property.

(d) Sellers and Buyer shall cooperate with each other and use all commercially reasonable
efforts to cause the investigations and other actions contemplated by Section 6.1 and this
Section 6.2 to be completed within the 60 day period contemplated by Section
6.1(a) and no party shall take any action in connection with performing such obligations
intended to unreasonably delay the timely completion of such obligations.

(e) If a landlord refuses to permit Buyer to conduct the environmental assessment activities
contemplated by Section 6.1 and this Section 6.2 as to a Transferred Leased Real
Property, Buyer may, upon written notice to Sellers, elect to remove such Transferred Leased Real
Property from the Purchased Assets to be conveyed to Buyer under this Agreement. If such
Transferred Leased Real Property is a Critical Property, then Sellers shall pay to Buyer, within
30 days of being invoiced therefor, the reasonably incurred moving expenses to transfer any
Purchased Assets, other than Immovable Fixtures, associated with such Critical Property to an
alternative facility selected by Buyer within 100 miles of such Critical Property.

(f) With respect to a Critical Property that has been removed from among the Purchased Assets
by Buyer or Sellers pursuant to Section 6.1 or this Section 6.2, Buyer may, upon
written notice to Sellers, extend the Closing Date for a reasonable period of time in order for
Buyer to make alternative arrangements in order to obtain the benefits previously associated with
such Critical Property. Sellers shall, in accordance with Section 8.1, cooperate with
Buyer in its efforts to make any such alternative arrangements.

Section 6.3 Ordinary Conduct. Except as otherwise expressly permitted by the terms of
this Agreement or as Buyer shall otherwise consent to, from the date hereof to the Closing, Sellers
shall cause the Purchased Business to be conducted in the ordinary course in substantially the same
manner as presently conducted and shall use reasonable efforts consistent with past practices to
preserve Sellers’ relationships with employees, customers, suppliers, dealers and others with whom
they deal. In addition, except as otherwise contemplated by the terms of this Agreement to the
extent permitted by Law, Sellers shall not do any of the following without the prior consent of
Buyer:

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(a) establish, adopt or enter into any Employee Benefit Plan related to any Business Employee
or any similar agreement or, except as required by applicable Law, amend or take any other
actions, including acceleration of vesting and waiver of performance criteria, with respect to any
Employee Benefit Plan or any similar agreement;

(b) increase the compensation payable or to become payable to any Business Employee, except
as may be required under existing agreements, other than ordinary course adjustments in response
to market conditions;

(c) grant any severance or termination pay (other than pursuant to the severance practices of
Sellers as in effect on the date of this Agreement) to, or enter into any employment or severance
agreement with, any Business Employee, either individually or as part of a class of similarly
situated persons;

(d) deviate from Sellers’ historical practices with respect to the incurrence and payment of
payables or accrual and collection of receivables or otherwise pay or satisfy any Liabilities
other than in the ordinary course of business consistent with past practice;

(e) permit, allow or suffer any of its assets to become subjected to any Lien other than
Permitted Liens;

(f) waive any Claims related to the Purchased Assets;

(g) make any change in any method of accounting or accounting practice related to the
Purchased Business other than those required by GAAP;

(h) sell, lease or otherwise dispose of any Purchased Assets, except in the ordinary course
of business consistent with past practice, whether by asset sale, merger, consolidation or
otherwise;

(i) amend, terminate, alter or waive performance under any Assumed Contract;

(j) fail to maintain the Purchased Assets in a manner consistent with past practices,
ordinary wear and tear excepted;

(k) fail to maintain the books of account and Records relating to the Purchased Business in
the usual, regular and ordinary manner, in accordance with the historical accounting practices of
Sellers;

(l) fail to preserve and maintain all rights that Sellers now enjoy in and to the Transferred
Intellectual Property;

(m) fail to maintain in full force and effect, to the extent available at commercially
reasonable rates, insurance coverage that is equivalent in all material respects to the insurance
coverage currently in effect and applicable to the Purchased Business and the Purchased Assets; or

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(n) agree, whether in writing or otherwise, to do any of the foregoing.

Section 6.4 Non-Competition; Non-solicitation.

(a) Sellers and Seller Parent agree that they shall not, and shall not permit any of their
Affiliates to, at any time during the three-year period immediately following the Closing Date
(the “Restricted Period”), directly or indirectly carry on or engage in the Pressure
Pumping Business or the Wireline Business (each, a “Competing Business”) in the
continental United States (other than the State of California) (the “Territory”).
Notwithstanding the foregoing, (i) Sellers and their Affiliates shall be permitted to own and
engage in a Competing Business during the Restricted Period if Sellers or their Affiliates
acquire, or are combined with or into, another Person that owns a Competing Business that is not
the primary business unit of such Person’s total operations and (ii) this covenant shall terminate
in the event that Seller Parent is acquired in a business combination transaction regardless of
the legal structure such acquisition takes.

(b) During the Restricted Period, each of Seller Parent and Sellers shall not, and each shall
cause its controlled Affiliates not to, without the prior written consent of Buyer, directly or
indirectly, solicit for employment or hire any then current employee of Buyer or the Purchased
Business, including any Transitioned Employee; provided, however, that (a) the
Seller Parent and Sellers and their respective Affiliates may hire any such person (i) who is not
a Transitioned Employee, (ii) whose employment is terminated by Buyer or (iii) who is no longer
employed by Buyer or the Purchased Business at the time of their initial contact with such person
regarding such employment and six months have elapsed since such person was employed by Buyer or
the Purchased Business; and (b) nothing in this Section 6.4 shall prohibit Seller Parent,
Sellers or any of their respective Affiliates from engaging in general solicitations to the public
or general advertising not targeted at employees of Buyer or the Purchased Business and hiring
persons responding thereto provided such persons are in no way directly solicited by them.

(c) Each of the Sellers and Seller Parent acknowledges that the Buyer would be irreparably
harmed by any violation of its obligations under this Section 6.4 and that, in addition to
all other rights or remedies available at law or in equity, if either Seller or Seller Parent
violates any of the covenants set forth in this Section 6.4, then, after Buyer has
provided written notice of such violation to such Seller or Seller Parent without such Seller or
Seller Parent immediately remedying such violation, Buyer shall be entitled to injunctive relief
or such other relief against such Seller as may be provided at Law or in equity together with such
damages as may be provided at Law or in equity. Buyer shall be entitled where provided under
applicable Law to specific performance of the requirements of this Section 6.4 or to
temporary or permanent injunctive relief against any breach of such provisions of this Agreement
by either Seller.

(d) Sellers and Seller Parent acknowledge that their obligations under this Section
6.4 are a material inducement to Buyer’s execution and performance of this Agreement and that
the restrictions contained in this Section 6.4 are reasonable as to time, geographic area
and scope of activity and do not impose a greater restraint than is necessary to protect the
goodwill and other legitimate business interests of Buyer.

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(e) If the provisions of this Section 6.4 are found by a court of competent
jurisdiction to contain unreasonable limitations as to time, geographic area or scope of activity,
then such court is hereby directed to reform such provisions to the minimum extent necessary to
cause the limitations contained therein as to time, geographical area and scope of activity to be
reasonable and enforceable.

(f) Buyer may, at any time and at its sole option, reduce the scope of this Section
6.4.

Section 6.5 Records. Promptly following the Closing Date, each Seller shall deliver
or cause to be delivered to Buyer all Records, if any, in the possession of such Seller relating to
the Purchased Assets, except that Sellers may retain copies of (i) their Records prepared in
connection with the transactions contemplated hereby and (ii) all Records conveyed to Buyer
pursuant to Section 2.1.

Section 6.6 Disclosure Schedules, Updated Disclosures; Breaches. Prior to the
execution and delivery hereof, Sellers shall deliver to Buyer schedules that modify, qualify or
contain the information called for by Article IV hereof (the “Sellers’ Disclosure
Schedules”). The Sellers’ Disclosure Schedules shall be arranged in paragraphs corresponding
to the numbered and lettered paragraphs contained in Article IV, and the disclosures in any
paragraph of the Sellers’ Disclosure Schedules shall qualify only (i) the corresponding paragraph
of Article IV and (ii) other paragraphs of Article IV to the extent it is
reasonably understood that such disclosure is applicable to another paragraph. The Sellers’
Disclosure Schedules shall constitute an integral part of this Agreement and, subject to the second
sentence of this Section 6.5, shall modify or otherwise affect the respective
representations, warranties, covenants or agreements of the parties hereto contained herein.

From and after the date of this Agreement until the Closing Date, Seller Parent and Sellers
promptly shall notify Buyer in writing of (a) any representation or warranty made by Seller Parent
or Sellers in connection with this Agreement becoming untrue or inaccurate in any material respect,
(b) the occurrence or non-occurrence of any event the occurrence or non-occurrence, of which would
be likely to cause any condition to the obligations of any party hereunder or under any other
Transaction Document not to be satisfied or (c) the failure of Seller Parent or Sellers to comply
with or satisfy any covenant, condition or agreement to be complied with or satisfied by it
pursuant to this Agreement which would be likely to result in any condition to the obligations of
any party not to be satisfied. Should any such fact or condition set forth in such notice require
any change to the Sellers’ Disclosure Schedules attached hereto, Sellers shall promptly deliver to
Buyer a supplement to the relevant section of the Sellers’ Disclosure Schedules specifying such
changes; provided, however, no such supplement shall be deemed a waiver of any
breach by Sellers of a representation or warranty made by Sellers in connection with this Agreement
or affect Buyer’s rights to indemnification under Article XIII.

Sellers shall not take any action that would, or that reasonably could be expected to (i)
result in any of the conditions to the purchase and sale of the Purchased Assets set forth in
Article X not being satisfied or (ii) result in any of the representations or warranties of
Sellers becoming untrue.

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Section 6.7 Employees of Purchased Business. From the date of this Agreement through
the Effective Time, Sellers shall cooperate with Buyer in encouraging Qualifying Business Employees
to accept employment with Buyer.

Section 6.8 Further Actions. From time to time, as and when requested by any party
hereto, Sellers shall execute and deliver, or cause to be executed and delivered, all such
documents and instruments and shall take, or cause to be taken, all such further or other actions,
not inconsistent herewith, as such other party may reasonably deem necessary or desirable to
consummate the transactions contemplated by this Agreement.

ARTICLE VII

COVENANTS OF BUYER

Buyer covenants and agrees as follows:

Section 7.1
Notice, Breaches.

Buyer shall not take any action that would, or that reasonably could be expected to (i) result
in any of the conditions to the purchase and sale of the Purchased Assets set forth in Article
XI not being satisfied or (ii) result in any of the representations or warranties of Buyer
becoming untrue.

From and after the date of this Agreement until the Closing Date, Buyer promptly shall notify
Sellers in writing of (a) any representation or warranty made by Buyer in connection with this
Agreement becoming untrue or inaccurate in any material respect, (b) the occurrence or
non-occurrence of any event the occurrence or non-occurrence of which would be likely to cause any
condition to the obligations of any party hereunder or under any other Transaction Document not to
be satisfied or (c) the failure of Buyer to comply with or satisfy any covenant, condition or
agreement to be complied with or satisfied by Buyer pursuant to this Agreement which would be
likely to result in any condition to the obligations of any party not to be satisfied. Should any
such fact or condition set forth in such notice require any change to the representations and
warranties made by Buyer under this Agreement, Buyer shall promptly deliver to Sellers a disclosure
schedule specifying such changes.

Section 7.2 Removal of Retained Marks. Notwithstanding anything in this Agreement to
the contrary, Buyer shall be entitled to a transitional period of 60 days following the Closing
Date to use Purchased Assets displaying any Retained Marks, including on vehicles, equipment, real
property, signage, supplies, materials, stationery, brochures, advertising and packaging materials,
manuals, electronic means of communication and similar items used in the Purchased Business. Buyer
acknowledges and agrees that neither it, nor any of its Affiliates, obtains any right, title,
interest, license or any other right whatsoever in or to use the Retained Marks. By the end of
such transitional period and without charge to Sellers, Buyer shall (a) remove or reasonably
obscure the Retained Marks from the Purchased Assets or (b) return or destroy, or cause to be
returned or destroyed, all other assets that contain any Retained Marks that are not removable.

Section 7.3 Further Actions. From time to time, as and when requested by any party
hereto, Buyer shall execute and deliver, or cause to be executed and delivered, all such

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documents and instruments and shall take, or cause to be taken, all such further or other
actions, not inconsistent herewith, as such other party may reasonably deem necessary or desirable
to consummate the transactions contemplated by this Agreement.

ARTICLE VIII

MUTUAL COVENANTS

Section 8.1 Cooperation. Sellers and Buyer shall cooperate with each other, and shall
cause their Representatives to cooperate with each other after the Closing to ensure the orderly
transition of the Purchased Assets from Sellers to Buyer, to minimize disruption of the Purchased
Business and to facilitate the realization by Sellers of the working capital (other than Inventory)
being retained by Sellers. After the Closing, upon reasonable written notice, Buyer and Sellers
shall furnish or cause to be furnished to each other and their Representatives access, during
normal business hours, such information and assistance (including the making available of
employees) relating to the Purchased Assets as is reasonably necessary for financial reporting and
accounting matters, the preparation and filing of any Tax Returns, the defense of any Tax claim or
assessment, the performance of their obligations under this Agreement, or the defense or
prosecution of any dispute, investigation, inquiry or Legal Proceeding.

Section 8.2 Notices; Filings; Consents.

(a) Subject to the terms and conditions of this Agreement, each party shall use reasonable
efforts to cause the Closing to occur as promptly as practical following the date hereof.

(b) Subject to the terms and conditions of this Agreement, Buyer and Sellers shall, and shall
cause their respective Affiliates to, (i) promptly, but in no event later than 10 business days
after the date hereof, make their respective filings under the HSR Act and thereafter make any
other required submissions under the HSR Act as promptly as reasonably practicable, (ii) use
reasonable efforts to cooperate with each other in (A) determining whether any filings are
required to be made with, or Permits are required to be obtained from, any other persons in
connection with the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby and (B) timely making all such filings and timely seeking all
such Permits, (iii) use reasonable efforts to take, or to cause to be taken, all other actions and
to do, or to cause to be done, all other things necessary, proper or advisable to consummate the
transactions contemplated hereby, (iv) subject to applicable legal limitations and the
instructions of any Governmental Authority, keep each other apprised of the status of matters
relating to the completion of the transactions contemplated by this Agreement, including to the
extent permitted by Law promptly furnishing the other with true and complete copies of notices or
other communications between Buyer, Sellers or any of their respective Affiliates, as the case may
be, and any Governmental Authority with respect thereto, and permit the other to review in advance
any proposed communication by such party to any Governmental Authority or other person and (v)
give the other reasonable notice of, and to the extent permitted by such Governmental Authority,
allow the other to attend and participate at any meeting with any Governmental Authority in
respect of any filings, investigation or other inquiry or proceeding relating thereto. Buyer
agrees to take any and all commercially reasonable steps necessary to avoid or eliminate each and
every impediment under any Law that

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may be asserted by any Governmental Authority with respect to the transactions contemplated
hereby so as to cause the Closing to occur as soon as reasonably possible, except that it will not
be required to commit to and/or effect, by consent decree, holding separate orders or otherwise,
the sale or disposition of assets in order to avoid entry of, or to the effect the dissolution
of, any injunction, a temporary restraining order or other order in any suit or proceeding that
would otherwise have the effect of materially delaying or preventing the consummation of the
transaction contemplated hereby.

(c) With respect to any Transferred Leases, Transferred Permits or Assumed Contracts, this
Agreement shall not constitute an assignment or an attempted assignment thereof if such assignment
or attempted assignment would constitute a violation thereof or a default thereunder, and the
parties shall cooperate and shall each use commercially reasonable efforts to obtain any such
consent or approval necessary to transfer each Transferred Lease, Transferred Permit or Assumed
Contract following the Closing. If the parties are unable to obtain consent to transfer or are
prevented by applicable Law from transferring any Transferred Lease, Transferred Permit or Assumed
Contract, then for the remaining term thereof, Buyer shall act as the applicable Seller’s agent in
the performance of all obligations and liabilities under such Transferred Lease, Transferred
Permit or Assumed Contract and such Seller shall act as Buyer’s agent in the receipt of any
benefits (net of Taxes, required withholdings, and other costs reasonably incurred by such
Seller), rights or interests which inure to such Seller thereunder. In the event that the
foregoing arrangements are prohibited or commercially impracticable with regard to any Transferred
Leases (and the associated Transferred Leased Real Property), Transferred Permits or Assumed
Contracts, then Buyer, at its option, shall be permitted to designate same as a Retained Liability
by notice in writing to the applicable Seller, whereupon the same shall revert to and be a
Retained Liability of such Seller and such Seller shall cooperate with Buyer in making alternative
arrangements to obtain the benefits previously associated with such Transferred Lease, Transferred
Permit or Assumed Contract.

(d) With respect to a Critical Property for which a consent to lease assignment has not been
obtained, Buyer may, upon written notice to Sellers, extend the Closing Date for a reasonable
period of time in order for Sellers to obtain such consent or, if a Transferred Lease (and the
associated Transferred Leased Real Property) that is a Critical Property is excluded from among
the Purchased Assets pursuant to Section 8.2(c), for Buyer to make alternative
arrangements in order to obtain the benefits previously associated with such Critical Property.
Sellers shall, in accordance with Section 8.1, cooperate with Buyer in its efforts to make
any such alternative arrangements.

Section 8.3 Monies Received Following Closing. Following the Closing, Buyer may
receive monies that, pursuant to the other terms and provisions hereof, are payable to or for the
account of Sellers, and Buyer agrees that, in such event, it shall promptly pay such monies to
Sellers. Following the Closing, Sellers may receive monies that, pursuant to the other terms and
provisions hereof, are payable to or for the account of Buyer, and Sellers agree that, in such
event, they shall promptly pay such monies to Buyer.

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Section 8.4 Employee Benefits Matters.

(a) At least 20 days before the Closing Date, Sellers shall provide Buyer with an updated
list of the Business Employees as of such date. At least 10 days before the Closing Date, Buyer
shall make offers of employment, effective as of the Closing Date, to all Business Employees who
pass Buyer’s pre-employment drug screening and fitness-for-duty tests and are not ineligible for
hire as of the Closing Date due to a previous relationship with Buyer (any such Business Employee
being a “Qualifying Business Employee”). Any Qualifying Business Employee who accepts
such offer of employment and becomes an employee of Buyer or an Affiliate of Buyer as of the
Closing Date shall be a “Transitioned Employee.”

(b) Except as provided in Section 8.4(j), Sellers shall be responsible for payment of
all obligations required or committed to the Business Employees with respect to the period prior
to the Effective Time, including salaries, wages, payroll Taxes, retirement, vacation pay and any
other obligations and expenses of any kind arising out of the employment by, or termination from
the employment of, such Seller of such employees. Buyer shall be responsible for all obligations
and costs with respect to Transitioned Employees arising after the Effective Time out of their
employment by Buyer or an Affiliate of Buyer or the termination by Buyer or an Affiliate of Buyer
thereof or the hiring practices of Buyer or any Affiliate thereof.

(c) Buyer is not acquiring or succeeding to any obligations with respect to any Employee
Benefit Plan sponsored, maintained or contributed to by Sellers or any Commonly Controlled Entity
of either Seller.

(d) The Seller Plans shall be solely responsible for any Liabilities that may arise with
respect to the application of Part 6 of Subtitle B of Title I of ERISA and Section 4980B of the
Code (“COBRA”) with respect to, and for extending continuation coverage under, COBRA to
any employees and former employees of Sellers, or to any qualified beneficiaries of such employees
and former employees, including Transitioned Employees, who incur a “qualifying event” (as that
term is defined in Code Section 4980B(f)) on or before the Effective Time. Buyer shall be
responsible for any Liabilities that may arise under COBRA with respect to, and for extending
continuation coverage under COBRA to, all Transitioned Employees and qualified beneficiaries
thereof who incur a “qualifying event” while covered under a Buyer group health plan subsequent to
the Effective Time. Sellers will provide the certification described in Sections 9801 et seq. of
the Code to the extent required by Law for all Transitioned Employees as of the Closing Date.
Except to the extent required by Law, Buyer shall not be deemed to be a successor employer for
COBRA purposes.

(e) The Seller Plans shall be responsible for the payment of benefits to Transitioned
Employees and their dependents or beneficiaries for any claims incurred under the Seller Plans
prior to the Effective Time. Employee Benefit Plans of Buyer or its Affiliates (“Buyer
Plans”) shall be responsible for the payment of benefits to Transitioned Employees and their
dependents or beneficiaries for claims incurred under such Buyer Plans on or after the Effective
Time. For this purpose, a claim shall be deemed to be incurred as follows: (i) life, accidental
death and dismemberment, and disability insurance benefits, upon the death, accident or other
event giving rise to such benefits, and (ii) medical, dental and prescription drug

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benefits (including in respect of any hospital confinement), upon provision of the applicable
services, materials or supplies.

(f) On and after the Closing Date, Buyer shall provide to each Transitioned Employee,
including those who are actively employed or on leave, disability or other absence from
employment, compensation and benefits that, on the whole, are comparable to the benefits provided
by Buyer to its own similarly situated employees as of the date thereof; provided,
however, that nothing herein shall be deemed to require Buyer to continue the employment
of any employee for any period or to restrict Buyer from making changes to any benefits provided
to, or compensation paid to, any employee in the future. As of the Effective Time, all
Transitioned Employees shall cease to participate in any Seller Plans. As of the Effective Time,
Buyer shall allow all Transitioned Employees and their eligible dependents to participate in the
Buyer Plans as necessary to comply with the terms of this Agreement and any applicable Law,
without any gap or loss of benefits or coverage. Except as provided in Section 8.4(e), as
of the Closing Date, Buyer shall cause all Buyer Plans for which Transitioned Employees are
eligible to participate on or after Closing to recognize for eligibility and vesting purposes (but
not for benefit accrual purposes) the years of service of each Transitioned Employee with Sellers
and/or their Affiliates (together with any predecessors thereof that previously employed any such
Transitioned Employees and as to which a Seller Plan recognizes such years of service) prior to
the Closing Date. With respect to each Transitioned Employee and such Transitioned Employee’s
dependents, Buyer shall waive under the Buyer Plans any pre-existing condition exclusions to
coverage (but only to the extent coverage was being provided under the Seller Plans to such
enrolled Transitioned Employee immediately prior to the Effective Time), any evidence of
insurability provisions, any active at work requirement and any waiting period or service
requirements that did not exist or had been waived or otherwise satisfied under the Seller Plans.
For each Transitioned Employee, Buyer shall apply toward any deductible requirements and
out-of-pocket maximum limits under its health plans applicable to the year of Closing, any amounts
paid by such Transitioned Employee during such year toward such requirements and limits under the
Seller Plans.

(g) Within 30 days following the Closing Date, Sellers shall notify Buyer of the total dollar
value of all unused vacation days for the Transitioned Employees and shall promptly pay such
amount to Buyer. Sellers shall also provide to Buyer detailed information as to unused vacation
days as to each Transitioned Employee, and Buyer will credit each Transitioned Employee with such
number of unused vacation days accrued by such employee with Sellers prior to the Closing Date.

(h) If Buyer or an Affiliate thereof maintains a Buyer Plan that is a qualified defined
contribution plan, Buyer shall take all action necessary or appropriate to permit the Transitioned
Employees to roll over their account balances (other than outstanding plan loans) under the
applicable Seller Plan that is a defined contribution plan into such Buyer Plan to the extent it
is determined that distribution of such balances from the applicable Seller Plan is permitted by
applicable Law.

(i) Sellers shall be responsible for the costs and expenses of workers’ compensation claims
of Business Employees for injuries sustained prior to the Effective Time whether or not reported
to such Seller or any insurer prior to the Effective Time. Buyer shall be

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responsible for all costs and expenses of workers’ compensation claims of any Transitioned
Employees for injuries sustained after the Effective Time.

(j) Schedule 4.19 identifies the retention and severance benefits that have been
offered to certain Business Employees. Buyer shall be responsible for the payment in full of all
severance payments and payment of half of the retention bonuses so identified that are scheduled
to become due and payable to Transitioned Employees; provided that Buyer’s share of any
such retention bonuses shall not exceed $900,000. Sellers shall pay to Buyer on the Closing Date
an amount equal to the balance of all retention bonuses so identified that are scheduled to become
due and payable to Transitioned Employees. The parties shall collaborate on the details and
methodology regarding the delivery of retention bonuses to Transitioned Employees after the
Effective Time. Sellers shall be responsible for the payment in full of all retention bonuses and
all severance payments that become due and payable to Business Employees that are not Transitioned
Employees.

(k) Nothing contained herein (i) shall confer upon any former, current or future employee of
Sellers or its Affiliates or Buyer or its Affiliates, or any legal representative or beneficiary
thereof, any rights or remedies, including any right to any benefit or employment or continued
employment of any nature, for any specified period, or (b) shall cause the employment status of
any former, current or future employee of Sellers or its Affiliates or Buyer or its Affiliates to
be other than terminable at will. If a person not entitled to enforce this Agreement brings a
lawsuit or other action to enforce any provision in this Agreement as an amendment to an Employee
Benefit Plan or another agreement, plan, program or document, and that provision is construed to
be such an amendment despite not being explicitly designated as such in this Agreement, that
provision shall lapse retroactively, thereby precluding it from having any amendatory effect.

Section 8.5 Scrap Equipment. Within 30 days after the Closing Date, Sellers shall
provide to Buyer a reasonably complete list of Scrap Equipment related to the Purchased Business
that is not located on the Transferred Real Property. Buyer shall have the right, within 180 days
of receiving such notice and at Buyer’s sole expense, to inspect such Scrap Equipment at such other
premises and may select to retain any such Scrap Equipment by providing to Sellers a list of Scrap
Equipment to remain with the Purchased Business. Any such Scrap Equipment so selected by Buyer
shall be actually removed from such location, at Buyer’s sole cost and expense, within such 180 day
period, and any such Scrap Equipment not so selected and removed (the “Non-Conveyed Scrap
Equipment”) shall revert to and be retained by Sellers. Sellers shall dispose of the
Non-Conveyed Scrap Equipment as scrap metal in the ordinary course of business.

Section 8.6 Publicity. Following the execution and delivery hereof, Buyer and
Sellers and their Affiliates shall cooperate with each other in making a public announcement
regarding the transactions contemplated hereby and in notifying lenders, customers and the like of
the transactions contemplated hereby.

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Section 8.7 Confidentiality.

(a) The terms of the confidentiality agreement, dated April 8, 2010 (the “Confidentiality
Agreement”), between the Seller Parent and Universal Well Services, Inc., are incorporated
into this Agreement by reference and shall continue in full force and effect and shall bind each
of Buyer and Buyer Parent as if each were a party thereto until the Closing, at which time the
confidentiality obligations under the Confidentiality Agreement shall terminate. If, for any
reason, the transactions contemplated by this Agreement are not consummated, the Confidentiality
Agreement shall nonetheless continue in full force and effect in accordance with its terms and
shall bind each of Buyer and Buyer Parent as if each were a party thereto.

(b) From and after the Closing, Seller Parent and each Seller, on the one hand, and Buyer
Parent and Buyer, on the other hand, shall, and shall cause their respective Affiliates and
representatives to, maintain in confidence any written, oral or other information relating to or
obtained from the other party or its Affiliates, except that the foregoing requirements of this
Section 8.7(b) shall not apply to the extent that (i) any such information is or becomes
generally available to the public other than (A) in the case of the Buyer Parent or Buyer, as a
result of disclosure by the Seller Parent, either Seller or any of their respective Affiliates or
representatives and (B) in the case of the Seller Parent or Sellers, as a result of disclosure by
the Buyer Parent or Buyer, or any of their respective Affiliates or representatives, (ii) any such
information (including any report, statement, testimony or other submission to a Governmental
Authority) is required by applicable Law, Order or such Governmental Authority to be disclosed
after prior notice has been given to the other party to the extent such notice is permitted by
applicable Law, provided that no such notice is required if prohibited by applicable Law, (iii)
any such information is reasonably necessary to be disclosed in connection with any action or in
any dispute with respect to this Agreement or the Transaction Documents (including in response to
any summons, subpoena or other legal process or formal or informal investigative demand issued to
the disclosing party in the course of any litigation, arbitration, mediation, investigation or
administrative proceeding), (iv) any such information was or becomes available to such party on a
non-confidential basis and from a source (other than a party hereto or any Affiliate or
representative of such party) that is not bound by a confidentiality agreement or other obligation
of confidentiality with respect to such information or (v) after the Closing, any such information
that becomes known or available pursuant to or as a result of the carrying out of the provisions
of the other Transaction Documents (which information shall be governed by the confidentiality
provisions set forth in the Transaction Documents, if any). Each of the parties hereto shall
instruct its Affiliates and representatives having access to such information of such obligation
of confidentiality; provided, however, that the parties hereto may disclose
information about the Tax treatment and Tax structure of the transactions contemplated by this
Agreement (including any facts or materials relating thereto or reasonably necessary to understand
such treatment or structure).

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Section 8.8 Transitional Matters.

(a) Schedule 8.8(a) describes certain pricing arrangements that are currently in
effect between Seller A and two customers. Promptly following the date hereof, Buyer and Seller A
shall approach each such customer regarding whether such customer wishes to maintain such
arrangement in effect. Buyer agrees that it will assume such arrangement if such customer
requests that it do so, and Buyer and Seller A shall cooperate reasonably with each other and such
customer to transfer such arrangement from Seller A to Buyer, including by Buyer entering into a
master service agreement with such customer for such arrangement.

(b) Buyer and Sellers shall use their commercially reasonable efforts to schedule jobs such
that there are no jobs related to the Purchased Business being performed as of the Effective Time.
To the extent that such jobs exist as of the Closing Date, Buyer agrees that it shall serve as
such Seller’s subcontractor for purposes of completing any jobs that are being performed as of the
Effective Time and Buyer and such Seller shall negotiate reasonably and in good faith as to the
terms of such arrangement, including customary indemnities and sharing of revenues and expenses.

(c) Promptly following the date hereof, Buyer and Sellers will negotiate reasonably and in
good faith with respect to the Transition Services Agreement, the material terms of which are set
forth on Exhibit B hereto.

(d) Promptly following the date hereof, Buyer and Sellers will negotiate reasonably and in
good faith with respect to the Buyer Lease Agreement and the Seller Lease Agreements.

(e) Seller Parent shall cause Advanced Measurements, Inc. to consent to the assignment of its
Service Agreement described in Schedule 2.1(f) and to provide such additional services as
may be requested by Buyer on terms no less favorable than those provided to customers similarly
situated to the Purchased Business.

ARTICLE IX

TAX MATTERS

Section 9.1 Cooperation. After the Closing, Buyer and Sellers will promptly make
available or cause to be made available to the other, as reasonably requested, and to any Taxing
Authority, all information, records or documents relating to Tax liabilities and potential Tax
liabilities relating to the Purchased Assets for all periods before or including the Closing Date
and will preserve all such information, records and documents until the expiration of any
applicable statute of limitations or extensions thereof. Each party will bear its own expenses in
complying with the provisions of this Section 9.1.

Section 9.2 Taxes Generally. Except as otherwise set forth in this Agreement, (a)
Sellers will be liable for, and shall defend, indemnify and hold harmless Buyer against, all Taxes
relating to the Purchased Assets or the Purchased Business for any Tax period (or portion thereof)
ending on or before the Closing Date and (b) Buyer will be liable for, and shall defend, indemnify
and hold harmless Sellers and their Affiliates against, all Taxes relating to the

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Purchased Assets or the Purchased Business for any Tax period (or portion thereof) beginning
after the Closing Date.

Section 9.3 Transfer Taxes. All sales, use, transfer, filing, recordation,
registration, and similar Taxes and fees arising from or associated with the transactions
contemplated by this Agreement, whether levied on Buyer or Sellers or their respective Affiliates,
shall be paid by Buyer, and Buyer shall file all necessary documentation with respect to, and make
all payments of, such Taxes and fees on a timely basis.

Section 9.4 Property Expense Apportionment. The following items relating to the
Purchased Assets will be apportioned at the Closing in an equitable manner as of the Closing Date
(the “Adjustment Date”) such that the expense items with respect to the period up to and
including the Adjustment Date will be for Sellers’ account and the expense items with respect to
the period after the Adjustment Date will be for Buyer’s account. For purposes of this Section
9.4, the term “equitable manner” will mean that Sellers will be allocated such items
based on a fraction, the numerator of which is the number of days in the applicable period ending
on and including the Adjustment Date and the denominator of which is the total number of days in
such period, and Buyer will be allocated the remainder:

(a) General and special real property ad valorem Taxes and payments in lieu of such Taxes
attributable to any Straddle Period in an equitable manner (as defined above). If the Closing Date
occurs before the Tax rate, assessment or amount of any payment in lieu of such Taxes is fixed for
any Straddle Period, the apportionment of such Taxes and payments at Closing will be based upon
the most recently ascertainable Tax bills and Buyer shall receive a credit at Closing against the
Purchase Price for the aggregate amount allocated to Sellers; provided that Buyer and
Sellers will recalculate and re-prorate such Taxes and payments and make the necessary cash
adjustments promptly upon the issuance, and on the basis, of the actual Tax bills and statements
received for any such Straddle Period and the amount of any payments in lieu of Tax made with
respect to any such Straddle Period.

(b) Personal property Taxes and payments in lieu of such Taxes attributable to any Straddle
Period in an equitable manner (as defined above). If the Closing Date occurs before the Tax rate,
assessment or amount of any payment in lieu of such Taxes is fixed for any Straddle Period, the
apportionment of such Taxes and payments at Closing will be based upon a reasonable estimate
mutually agreed upon by Buyer and Sellers and Buyer shall receive a credit at Closing against the
Purchase Price for the aggregate amount allocated to Sellers; provided that Buyer and
Sellers will recalculate and re-prorate such Taxes and payments and make the necessary cash
adjustments promptly upon the issuance, and on the basis, of the actual Tax bills and statements
received for any such Straddle Period.

(c) Utility charges and other apportionments and adjustments as are customarily apportioned
upon the transfer of real and personal property in the county and state in which the subject
property is located.

(d) To the extent any Taxes or payments described in Section 9.4(a) or (b)
are adjusted as a result of any governmental Tax audit or administrative or court proceeding,
Buyer

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and Sellers will recalculate and re-prorate such Taxes and payments and make the necessary
cash adjustments promptly upon the resolution of such audit or proceeding.

Section 9.5 Tax Treatment of Indemnity Payments. Sellers and Buyer agree to treat any
indemnity payment made pursuant to this Agreement as an adjustment to the Purchase Price for
federal, state, local and foreign income Tax purposes.

ARTICLE X

CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS

The obligation of Buyer to consummate the transactions contemplated hereby on the Closing Date
is subject to the receipt of the certificates, documents and instruments referenced in Section
3.3 and to the satisfaction of the following conditions at or prior to the Closing:

Section 10.1 Accuracy of Representations and Warranties. The representations and
warranties of Sellers made in this Agreement and in any other certificate or writing delivered
pursuant hereto shall be true and correct as of the date thereof, and such representations and
warranties (a) if qualified by materiality, shall be true and correct and (b) if not qualified by
materiality, shall be true and correct in all material respects, in both cases as of the time of
the Closing as though made as of such time, except to the extent such representations and
warranties expressly relate to an earlier date, in which case then as of such earlier date.
Sellers shall have performed or complied in all material respects with all obligations and
covenants required by this Agreement to be performed or complied with by Sellers by the time of the
Closing. Sellers shall have delivered to Buyer a certificate dated the Closing Date and signed by
Sellers confirming the foregoing.

Section 10.2 No Law. No Law shall have been enacted, entered, promulgated or enforced
by any Governmental Authority that prohibits or materially and adversely restricts the consummation
of the transactions contemplated hereby.

Section 10.3 No Order. There shall not be in effect any Order of any Court or
Governmental Authority enjoining the consummation of the transactions contemplated hereby.

Section 10.4 Waiting Period. Any waiting periods applicable to the transactions
contemplated by this Agreement under the HSR Act and any other applicable antitrust or trade
regulation laws and regulations shall have expired or been terminated and all Permits from
Governmental Authorities required in connection with the transactions contemplated by this
Agreement shall have been obtained or given (other than any post-Closing filings required with
respect to the high explosives permit issued to Sellers by the Department of Treasury — Bureau of
Alcohol, Tobacco and Firearms).

Section 10.5 Audited Financial Statements. Buyer shall have received from Grant
Thornton LLP the combined audited financial statements (including a balance sheet and the related
statement of income) of the Purchased Business as of and for the years ended December 31, 2008 and
December 31, 2009.

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ARTICLE XI

CONDITIONS PRECEDENT TO SELLERS’ OBLIGATIONS

The obligation of Sellers to consummate the transactions contemplated hereby on the Closing
Date is subject to the receipt of the documents and instruments referenced in Section 3.2
and to the satisfaction of the following conditions at or prior to the Closing:

Section 11.1 Accuracy of Representations and Warranties. The representations and
warranties of Buyer made in this Agreement and in any other certificate or writing delivered
pursuant hereto shall be true and correct as of the date thereof, and such representations and
warranties (a) if qualified by materiality, shall be true and correct and (b) if not qualified by
materiality, shall be true and correct in all material respects, in both cases as of the time of
the Closing as though made as of such time, except to the extent such representations and
warranties expressly relate to an earlier date, in which case then as of such earlier date. Buyer
shall have performed or complied in all material respects with all obligations and covenants
required by this Agreement to be performed or complied with by Buyer at the time of the Closing.
Buyer shall have delivered to Sellers a certificate dated the Closing Date and signed by an
authorized officer of Buyer confirming the foregoing.

Section 11.2 No Law. No Law shall have been enacted, entered, promulgated or enforced
by any Governmental Authority that prohibits or materially and adversely restricts the consummation
of the transactions contemplated hereby.

Section 11.3 No Order. There shall not be in effect any Order of any Court or
Governmental Authority enjoining the consummation of the transactions contemplated hereby.

Section 11.4 Waiting Period. Any waiting periods applicable to the transactions
contemplated by this Agreement under the HSR Act and any other applicable antitrust or trade
regulation laws and regulations shall have expired or been terminated and all Permits from
Governmental Authorities required in connection with the transactions contemplated by this
Agreement, shall have been obtained or given (other than any post-Closing filings required with
respect to the high explosives permit issued to Buyer by the Department of Treasury — Bureau of
Alcohol, Tobacco and Firearms).

ARTICLE XII

TERMINATION

Section 12.1 Termination of Agreement. This Agreement may be terminated at any time
prior to the Closing:

(a) Mutual Consent. By mutual written consent of Sellers and Buyer;

(b) Material Breach of Sellers. By Buyer, upon written notice of termination of its
obligation to consummate the transaction delivered to Sellers, if Buyer reasonably has determined
that there has been a breach in any material respect of any covenant of Sellers or any
representation or warranty of Sellers shall have been untrue when made or become untrue, in any
such cases such that the conditions set forth in Article X would not be satisfied, stating
in particularity the default or defaults upon which the notice is based; provided that
Buyer has not

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breached any of its obligations hereunder in any material respect which breach is continuing
at such time; provided, further, that Sellers shall, after receipt of such notice,
have 15 days in which to cure such breach and, if so cured, Buyer shall, for that reason, have no
right to terminate this Agreement;

(c) Material Breach of Buyer. By Sellers, upon written notice of termination of their
obligation to consummate the transaction delivered to Buyer, if Sellers reasonably determine that
there has been any material breach of any covenant of Buyer or any representation or warranty of
Buyer shall have been untrue when made or become untrue, in any such cases such that the
conditions set forth in Article XI would not be satisfied, stating in particularity the
default or defaults upon which the notice is based; provided that Sellers have not
breached any of their obligations hereunder in any material respect which breach is continuing at
such time; provided, further, that Buyer shall, after receipt of such notice, have
15 days in which to cure such breach and, if so cured, Sellers shall, for that reason, have no
right to terminate this Agreement; or

(d) Expiration Date. By Sellers or Buyer upon written notice to the other if the Closing
shall not have occurred on or before December 1, 2010; provided that the party delivering
such notice is not in material default of any of its obligations hereunder.

Section 12.2 Effect of Termination. If this Agreement is terminated pursuant to
Section 12.1, all further obligations of the parties hereunder shall terminate and there
shall be no liability on the part of any party hereto to another party hereto on account of such
termination, except that the obligations in Article XIV shall survive the termination
hereof; provided, however, that nothing herein shall relieve a breaching or
defaulting party for liability arising from any breach or default by such party that shall occur
prior to the date of termination of this Agreement.

ARTICLE XIII

INDEMNIFICATION

Section 13.1 In General.

(a) Subject to the terms and conditions of this Article XIII, (A) with respect to
clause (i) of this subsection (a), Seller Parent and Sellers jointly and severally, and (B) with
respect to clauses (ii) and (iii) of this subsection (a), Sellers jointly and severally, agree to
indemnify, defend and hold harmless Buyer and Buyer Parent and their respective directors,
officers, employees, equity owners, agents, representatives, successors and permitted assigns from
and against any and all losses, liabilities, obligations, damages, deficiencies and expenses
(including court costs and reasonable attorneys’, accountants’ and other experts’ fees and
expenses and expenses in investigating, preparing for and participating in any litigation or
proceeding including all appeals), interest, penalties, amounts paid in settlement, Taxes, fines,
judgments or assessments (collectively, “Damages”) arising out of or resulting from:

(i) the inaccuracy or breach of any representation or warranty of Sellers or Seller Parent
contained herein, other than the representations and warranties contained in Section
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(ii) the breach or nonfulfillment of any covenant or agreement on the part of Sellers or
Seller Parent under the terms of this Agreement; and

(iii) any Retained Liability.

(b) Subject to the terms and conditions of this Article XIII, (A) with respect to
clause (i) of this subsection (b), Buyer and Buyer Parent jointly and severally agree, and (B)
with respect to clauses (ii) and (iii) of this subsection (b) Buyer agrees, to indemnify, defend
and hold harmless Sellers and Seller Parent and their respective directors, officers, employees,
equity owners, agents, representatives, successors and permitted assigns from and against all
Damages arising out of or resulting from:

(i) the inaccuracy or breach of any representation or warranty of Buyer or Buyer Parent
contained herein;

(ii) the nonfulfillment or breach of any covenant or agreement on the part of Buyer or Buyer
Parent under the terms of this Agreement; and

(iii) any Assumed Obligation.

Section 13.2 Method of Asserting Claims, Etc. All claims for indemnification by an
Indemnified Party under Section 13.1 hereof shall be asserted and resolved as follows:

(a) If any claim or demand for which an Indemnifying Party would be liable to an Indemnified
Party hereunder is overtly asserted against or sought to be collected from such Indemnified Party
by a third party (a “Third Party Claim”), such Indemnified Party shall promptly (but in no
event later than 10 days after the Third Party Claim is so asserted or sought against the
Indemnified Party) notify in writing the Indemnifying Party of such Third Party Claim enclosing a
copy of all papers served, if any, and specifying the nature of and specific basis for such Third
Party Claim and the amount or the estimated amount thereof to the extent then reasonably
determinable, which estimate shall not be conclusive of the final amount of such Third Party Claim
(the “Claim Notice”). Notwithstanding the foregoing, the failure to send or a delay in
sending a Claim Notice as provided above shall not relieve the Indemnifying Party from its
obligation to indemnify the Indemnified Party with respect to any such Third Party Claim, except
and only to the extent that the Indemnifying Party demonstrates that it has been actually
materially prejudiced by such failure or delay.

(b) In the event of any Third Party Claim, the Indemnifying Party, at its option, may assume
(with legal counsel reasonably acceptable to the Indemnified Party) at its sole cost and expense
the defense of such Third Party Claim if it acknowledges to the Indemnified Party in writing its
obligations to indemnify the Indemnified Party with respect to all elements of such Third Party
Claim and may assert any defense of the Indemnified Party or the Indemnifying Party;
provided that the Indemnified Party has the right at its own expense to participate
jointly with the Indemnifying Party in the defense of any such Third Party Claim. Counsel
representing both the Indemnifying Party and the Indemnified Party must acknowledge in writing its
obligation to act as counsel for all parties being represented and must acknowledge and respect
separate attorney-client privileges with respect to each party represented. If the Indemnifying
Party elects to undertake the defense of any Third Party Claim

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hereunder, (i) the Indemnifying Party and its counsel shall keep the Indemnified Party
reasonably informed as to its conduct of such defense, and (ii) the Indemnified Party must
cooperate with the Indemnifying Party in the defense or settlement of the Third Party Claim,
including providing access to information, making documents available for inspection and copying,
and making employees available for interviews, depositions and trial. The Indemnifying Party is
not entitled to settle or consent to the entry of any judgment with respect to any Third Party
Claim without the prior written consent of the Indemnified Party, which consent may not be
unreasonably withheld, conditioned or delayed, unless the settlement or judgment involves only the
payment of money damages, contains a full and complete release of the Indemnified Party and does
not impose an injunction or other equitable relief upon the Indemnified Party.

(c) If the Indemnifying Party, by the 30th day after receipt of the Claim Notice (or, if
earlier, by the tenth day preceding the day on which an answer or other pleading must be served in
order to prevent judgment by default in favor of the Person asserting such Third Party Claim),
does not assume actively and in good faith the defense of any such Third Party Claim or action
resulting therefrom, the Indemnified Party may, at the Indemnifying Party’s expense, defend
against such Third Party Claim or litigation, after giving notice of the same to the Indemnifying
Party, on such terms as the Indemnified Party may deem appropriate, and the Indemnifying Party is
entitled to participate in (but not control) the defense of such action, with its counsel and at
its own expense. The Indemnified Party may not settle or compromise any Third Party Claim for
which it is entitled to indemnification hereunder, without the prior written consent of the
Indemnifying Party, which consent may not be unreasonably withheld, conditioned, or delayed.

(d) The Indemnified Party shall make available to the Indemnifying Party and its
Representatives all Records and other materials required by the Indemnifying Party and in the
possession or under the control of the Indemnified Party, for the use of the Indemnified Party and
its Representatives in defending any such Third Party Clam, and shall in other respects give
reasonable cooperation in such defense.

(e) If any Indemnified Party should have a claim against any Indemnifying Party under this
Article XIII which does not involve a Third Party Claim, the Indemnified Party shall
notify the Indemnifying Party of such claim, specifying the nature of and specific basis for such
claim and the amount or the estimated amount of such claim (the “Indemnity Notice”). The
failure by any Indemnified Party to so notify the Indemnifying Party shall not relieve the
Indemnifying Party from any liability which it may have to such Indemnified Party under this
Article XIII, except and only to the extent that the Indemnifying Party demonstrates that
it has been actually materially prejudiced by such failure. If the Indemnifying Party does not
notify the Indemnified Party in writing within 30 days from delivery of the Indemnity Notice that
the Indemnifying Party disputes such claim, the amount of such claim specified by the Indemnified
Party shall be conclusively deemed a liability of the Indemnifying Party hereunder. If the
Indemnifying Party has timely disputed such claim, the Indemnifying Party and the Indemnified
Party shall for a period of 30 days proceed in good faith to negotiate a resolution of such
dispute and, if not resolved through negotiations, such dispute may, at the option of either
party, be resolved by any method permitted by Law or in equity.

ASSET PURCHASE AGREEMENT

 

49

 

Section 13.3 Responsibilities Relating to Environmental Conditions for Which a Seller has
Elected to Conduct Remedial Action.

(a) Sellers shall retain and be solely responsible for all Commercially Reasonable
Remediation Costs arising out of any Potentially Material Environmental Condition for which a
Seller has elected to conduct Remedial Action pursuant to Section 6.2(b)(i) (the
“Seller Environmental Liabilities”).

(b) As between the Parties, Buyer shall have the right to direct and control any Remedial
Actions relating to any Seller Environmental Liability. With respect to any such Seller
Environmental Liability, all discussions, negotiations and proceedings with Governmental
Authorities and other third Persons, and all filings with or other reports made to any
Governmental Authority, shall be conducted or effected by Buyer. Sellers shall have the right to
attend any such discussions, negotiations or proceedings at its own expense, and Buyer shall, to
the extent reasonably practicable, provide Sellers with at least five business days notice in
advance of any such discussions or meeting in order to allow Sellers the opportunity to attend the
same. With respect to each Seller Environmental Liability: (i) Buyer shall provide Sellers with
copies of any reports, studies, notices or filings regarding the Remedial Action prior to filing
or otherwise submitting them to any applicable Government Authority and shall allow Sellers a
reasonable opportunity to review them and, if requested, shall give reasonable consideration to
any comments of Sellers prior to making such submittal to such Governmental Authority; and (ii)
Buyer shall, from time to time and as may be reasonably requested by Sellers, provide reasonable
details to Sellers regarding the status of the Remedial Actions. In conducting any Remedial
Actions, Buyer may use risk-based remediation standards allowed under applicable Environmental
Laws consistent with the Commercially Reasonable Remediation Cost.

Section 13.4 Remedies.

(a) Notwithstanding anything herein to the contrary, the indemnification provisions of this
Article XIII shall be each party’s sole and exclusive remedy for any breaches of
representations and warranties under this Agreement, and the parties hereto hereby waive any right
to assert claims for such breaches in any other manner.

(b) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NEITHER BUYER NOR ANY OF ITS
AFFILIATES SHALL BE LIABLE TO SELLERS FOR ANY EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT,
CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES, EXCEPT TO THE EXTENT ANY SUCH DAMAGES ARE INCLUDED
IN ANY ACTION BY A THIRD PARTY AGAINST SELLERS OR ANY OF THEIR RESPECTIVE AFFILIATES FOR WHICH
THEY ARE ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT.

(c) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NEITHER SELLERS NOR ANY OF
THEIR RESPECTIVE AFFILIATES SHALL BE LIABLE TO BUYER FOR ANY EXEMPLARY, PUNITIVE, SPECIAL,
INDIRECT, CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES, EXCEPT TO THE EXTENT ANY SUCH DAMAGES ARE
INCLUDED IN ANY ACTION BY A THIRD

ASSET PURCHASE AGREEMENT

 

50

 

PARTY AGAINST BUYER OR ANY OF ITS AFFILIATES FOR WHICH THEY ARE ENTITLED TO INDEMNIFICATION
UNDER THIS AGREEMENT.

Section 13.5 Survival of Representations and Warranties; Limitations.

(a) All representations and warranties in this Agreement shall survive the Closing for 18
months following the Closing Date, except that (i) the representations and warranties contained in
Sections 4.1 through 4.5, the first sentence of Section 4.12 and Sections 5.1
through 5.5 shall survive the Closing, (ii) the representations and warranties contained in
Sections 4.22 shall survive the Closing until the third annual anniversary of the Closing
Date and (iii) the representations and warranties contained in Sections 4.11 and
4.21 shall survive the Closing until the sixth annual anniversary of the Closing Date (the
“Survival Periods”). An Indemnifying Party shall not have any liability under this
Article XIII with respect to the inaccuracy or breach of a representation or warranty
unless a written claim for indemnification in accordance with Section 13.2 is given by the
Indemnified Party to the Indemnifying Party with respect thereto within the applicable Survival
Period.

(b) No Indemnified Party shall be entitled to indemnification pursuant to this Article
XIII in respect of the inaccuracy or breach of a representation or warranty unless the
aggregate amount of Damages payable to Indemnified Parties hereunder in respect of all such
inaccuracies or breaches exceeds $2,000,000 after which, subject to Section 13.4(c), the
Indemnifying Party shall indemnify the Indemnified Parties for all Damages incurred in excess of
$1,000,000.

(c) An Indemnifying Party shall have no obligation to indemnify an Indemnified Party pursuant
to this Article XIII with respect to the inaccuracy or breach of representations and
warranties for an aggregate amount of Damages in excess of 15% of the Purchase Price, except that,
(i) in the case of the inaccuracy or breach of the representations and warranties contained in
Sections 4.11, 4.21 and 4.22, such cap shall, instead, be 75% of the
Purchase Price and (ii) in the case of the inaccuracy or breach of the representations and
warranties contained in Sections 4.1 through 4.5, the first sentence of Section
4.12 and Sections 5.1 through 5.5, such cap shall, instead, be the Purchase Price.

(d) Regardless of the failure of Sellers to include any relevant information in the Sellers’
Disclosure Schedules or any supplement thereto, to the extent that Sellers can demonstrate that
Buyer had Knowledge of any information that should have been disclosed in the Sellers’ Disclosure
Schedules or any supplement thereto, such information shall not form the basis for a claim
pursuant to Article XIII of this Agreement or otherwise give rise to any claim on the part
of Buyer.

Section 13.6 Recovery. The amount of any Damages for which indemnification is
provided hereunder shall be net of any other amounts recovered by the Indemnified Party with
respect to such Damages, including under insurance policies, indemnity arrangements and the like.
An Indemnified Party who has received a recovery for Damages arising from breach of a
representation, warranty, agreement or covenant under this Agreement which is subject to
indemnification shall have no right to recover twice for the same Damages under the indemnification
provided in this Agreement nor shall its insurer or indemnitor be entitled to any

ASSET PURCHASE AGREEMENT

 

51

 

kind of subrogation or substitution which would give it the right to make a claim against the
Indemnifying Party. Each Indemnified Party shall use reasonable efforts to pursue reimbursement
for Damages, including under insurance policies and indemnity arrangements.

Section 13.7 Express Negligence. THE INDEMNITIES SET FORTH IN THIS ARTICLE
XIII ARE INTENDED TO BE ENFORCEABLE AGAINST THE PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS
AND SCOPE THEREOF NOTWITHSTANDING TEXAS’ EXPRESS NEGLIGENCE RULE OR ANY SIMILAR DIRECTIVE THAT
WOULD PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE OF THE SIMPLE OR GROSS NEGLIGENCE (WHETHER
SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF ANY INDEMNIFIED PARTIES.
THE PARTIES HERETO ACKNOWLEDGE THAT THE INDEMNITIES SET FORTH HEREIN MAY RESULT IN THE INDEMNITY
OF A PARTY FOR ITS SIMPLE OR GROSS NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR
OTHER FAULT OR STRICT LIABILITY OF THE INDEMNIFIED PARTY.

ARTICLE XIV

MISCELLANEOUS

Section 14.1 Amendments. No amendment, modification or waiver in respect of this
Agreement shall be effective unless it shall be in writing and signed by all parties hereto.

Section 14.2 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered personally, telecopied, mailed by registered or
certified mail (return receipt requested), or sent by Federal Express or other recognized overnight
courier guaranteeing next business day delivery, to the parties at the following addresses (or at
such other address for a party as shall be specified by like notice):

if to Buyer or Buyer Parent:

Patterson-UTI Energy, Inc.

450 Gears Road, Suite 500

Houston, Texas 77067

Attention: General Counsel

if to Sellers or Seller Parent:

Key Energy Services, Inc.

1301 McKinney, Suite 1800

Houston, Texas 77010

Attention: General Counsel

ASSET PURCHASE AGREEMENT

 

52

 

Any of the above addresses may be changed at any time by notice given as provided above;
provided, however, that any such notice or change of address shall be effective
only upon receipt. All notices, requests or instructions given in accordance herewith shall be
deemed received on the date of delivery, if hand delivered, on the date of receipt, if telecopied
during the recipient’s normal business hours and if a telecopy confirmation is received, upon
receipt, if mailed by registered or certified mail, return receipt requested, and one business day
after the date of sending, if sent by Federal Express or other recognized overnight courier.

Section 14.3 Assignment. This Agreement and the rights and obligations hereunder
shall not be assignable or transferable by any party without the prior written consent of the other
parties hereto. Any attempted assignment in violation of this Section 14.3 shall be void
ab initio.

Section 14.4 Severability. If any provision of this Agreement (or any portion
thereof) or the application of any such provision (or any portion thereof) to any person or
circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision to any other persons
or circumstances.

Section 14.5 Entire Agreement. This Agreement and the documents and instruments and
other agreements specifically referred to herein or delivered pursuant hereto and the
confidentiality agreement dated as of April 8, 2010 between Seller Parent and Universal Well
Services, Inc., contain the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof and supersede all prior agreements and understandings, whether
written or oral, relating to such subject matter. In the event of a termination of this Agreement,
the parties’ obligations under the above mentioned confidentiality agreement shall survive such
termination.

Section 14.6 Governing Law. This Agreement, its construction and any disputes arising
out of, connected with or related to it shall be governed by the Laws of the State of Texas,
without regard to the conflicts of law principles of such state.

Section 14.7 Expenses. Whether or not the transactions contemplated hereby are
consummated, and except as otherwise specifically provided in this Agreement, all costs and
expenses incurred in connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such costs or expenses.

Section 14.8 Binding Effect; No Third Party Beneficiaries. This Agreement shall be
binding on and shall inure to the benefit of the parties hereto and their respective heirs, legal
representatives, executors, administrators, successors and permitted assigns. Except as provided
in Article XIII, this Agreement is for the sole benefit of the parties hereto and their
respective heirs, legal representatives, executors, administrators, successors and permitted
assigns, and nothing herein expressed or implied shall give or be construed to give to any person,
other than such persons, any legal or equitable rights hereunder.

ASSET PURCHASE AGREEMENT

 

53

 

Section 14.9 Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more such counterparts have been signed by each of the parties and delivered
to the other party.

Section 14.10 Time. Time is of the essence in the performance of this Agreement.

Section 14.11 Seller Parent Assurance.

(a) From the date hereof through the Closing, Seller Parent shall cause Sellers and its other
applicable Affiliates to perform all of their obligations under this Agreement. In the event that
a Seller is not the owner or holder of, or party in interest with respect to, a particular
Purchased Asset, Seller Parent shall cause its applicable Subsidiary that is the owner or holder
of, or party in interest with respect to, such Purchased Asset to convey same to Buyer in
accordance with the terms of this Agreement.

(b) In the event that an Affiliate of a Seller is the owner or holder of, or party in
interest with respect to, a particular Purchased Asset, then the representations and warranties
contained in Sections 4.10, 4.12, 4.13, 4.14, 4.15,
4.18 and 4.22 shall be deemed to have been made by Sellers with respect to such
Affiliate’s interest in such Purchased Asset.

Section 14.12 Buyer Parent Assurance. From the date hereof through the Closing, Buyer
Parent shall cause Buyer and its applicable Affiliates to perform all of their obligations under
this Agreement.

[Signature Page Follows]

ASSET PURCHASE AGREEMENT

 

54

 

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

	 	 	 	 	 	 	 	 	 	 	 
	SELLER A:	 	 	 	SELLER B:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	KEY ENERGY PRESSURE PUMPING SERVICES, LLC	 	 	 	KEY ELECTRIC WIRELINE SERVICES, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Newton W. Wilson III
 

Newton W. Wilson III
	 	 	 	By:
	 	/s/ Newton W. Wilson III
 

Newton W. Wilson III
	 	 
	 

	 	President
	 	 	 	 	 	President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	SELLER PARENT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	KEY ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Newton W. Wilson III
 

Newton W. Wilson III
	 	 
	 

	 	 	 	 	 	 	 	Senior Vice President and Chief

Operating Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BUYER:	 	 	 	BUYER PARENT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PORTOFINO ACQUISITION COMPANY	 	 	 	PATTERSON-UTI ENERGY, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ John E. Vollmer III
 

John E. Vollmer III
	 	 	 	By:
	 	/s/ John E. Vollmer III
 

John E. Vollmer III
	 	 
	 

	 	Senior Vice President — Corporate
	 	 
	 	 	 	Senior Vice President — Corporate	 	 
	 

	 	Development, Chief Financial
	 	 	 	 	 	Development, Chief Financial	 	 
	 

	 	Officer and Treasurer
	 	 	 	 	 	Officer and Treasurer	 	 

 

 

 

EXHIBIT A

(RESERVED)

 

 

 

EXHIBIT B

MATERIAL TERMS OF

TRANSITION SERVICES AGREEMENT

The following is a summary of terms regarding certain major business points which would be
incorporated in a Transition Services Agreement (the “TSA”) between Portofino Acquisition
Company, a Delaware corporation (“Buyer”), Key Energy Pressure Pumping Services, LLC, a
Texas limited liability company (“Seller A”), Key Electric Wireline Services, LLC, a
Delaware limited liability company (“Seller B”, and together with Seller A, the
“Sellers”), and Key Energy Services, Inc., a Maryland corporation (“Seller
Parent”). Capitalized terms used but not defined herein shall have the meanings given in the
Asset Purchase Agreement (the “Agreement”) to which this term sheet is attached.

	 	 	 
	ADDITIONAL 

CONSIDERATION:

	 	None.
	 
	 	 
	EXPENSE REIMBURSEMENT:

	 	Reasonable out-of-pocket expenses actually incurred
by the party providing transitional services in the
course of performing its duties under the TSA.
	 
	 	 
	TERM:

	 	120 days commencing on the Closing Date.
	 
	 	 
	TERMINATION:

	 	Automatic at end of Term.
	 
	 	 
	RENEWAL
OPTIONS:

	 	None.
	 
	 	 
	STANDARD OF SERVICE:

	 	Consistent with historical past practice; no
warranties concerning services provided.
	 
	 	 
	SERVICES COVERED:

	 	Buyer to receive:
	 
	 	 
	 

	 	Phone and internet services at certain Transferred
Real Property.
	 
	 	 
	 

	 	Temporary use by Buyer of Seller Parent’s Breaux
Bridge, Louisiana facility until the Vincent Road,
Lafayette, Louisiana facility is ready for move-in.
	 
	 	 
	 

	 	Sellers to receive:
	 
	 	 
	 

	 	Shared use of Transferred Real Property at
Cleburne, Texas.

 

 

 

	 	 	 
	 

	 	Such other transitional services mutually agreed to
by the parties between the date of the Agreement
and the Closing Date.

 

 

 

EXHIBIT C

MATERIAL TERMS OF

LEASE AGREEMENT

The following is a summary of terms regarding certain major business points which would be
incorporated in the Buyer Lease Agreement and the applicable Seller Lease Agreement (the
“Lease”) between the applicable tenant (“Tenant”), and the applicable landlord
(“Landlord”) as to the applicable Transferred Leased Real Property identified in the Asset
Purchase Agreement to which this exhibit is attached (the “Agreement”) (the “Leased
Premises”). Capitalized terms used but not defined herein shall have the meanings given in the
Agreement.

	 	 	 
	RENT:

	 	$7,500 per month.
	 
	 	 
	INSURANCE AND 

MAINTENANCE:

	 	In addition to the Rent, Tenant shall be responsible
for all costs of operating and maintaining the Leased
Premises including insurance and routine maintenance.
	 
	 	 
	TAX LIABILITY:

	 	Total tax liability shall be divided 50% to Tenant and
50% to Landlord. Total tax liability shall be
determined by the appropriate taxing authorities. Tax
payment obligations are based on a daily proration of
Tenant’s occupancy term.
	 
	 	 
	UTILITIES AND MAJOR 

REPAIRS:

	 	All costs for utilities and repairs to major facility
systems shall be divided 50% to Tenant and 50% to
Landlord.
	 
	 	 
	COMMENCEMENT DATE:

	 	The Primary Term shall commence on the Closing Date as
defined in the Agreement.
	 
	 	 
	TERMINATION OF 

PRIMARY TERM:

	 	18 months following the Commencement Date or upon 30
days’ notice by Tenant.
	 
	 	 
	RENEWAL OPTIONS:

	 	None.
	 
	 	 
	USE OF THE LEASED 

PREMISES:

	 	Tenant shall have the right to use and occupy each
tract included in the Leased Premises only for the
purposes consistent with Tenant’s business or the
business of Tenant’s affiliates.

 

 

 

	 	 	 
	ENVIRONMENTAL 

MATTERS:

	 	Landlord shall indemnify and hold harmless Tenant for
any claims made by third parties for damages arising
out of the environmental condition of the Leased
Premises that constitute an Existing Condition.
	 
	 	 
	INDEMNITY:

	 	Tenant shall indemnify, defend and hold Landlord
harmless from and against any claims arising out of
Tenant’s presence or operations on the Leased
Premises.
	 
	 	 
	RETURN OF LEASED 

PREMISES:

	 	Tenant shall be obligated to return the Leased
Premises to Landlord at the end of the term of the
Lease in substantially the condition such premises
were in on the Commencement Date, ordinary wear and
tear excepted.
	 
	 	 
	RIGHT TO ASSIGN AND 

SUBLEASE:

	 	Tenant shall not have the right to assign or sublease
all or any portion of the Leased Premises without the
written consent of Landlord, such consent not to be
unreasonably withheld; provided that Tenant may assign
or sublease all or any portion of the Leased Premises
at its sole discretion to an affiliate of Tenant or to
any purchaser of all or a portion of Tenant’s assets
or stock.

 

 

 

EXHIBIT D

MATERIAL TERMS OF

LEASE AGREEMENT — HEBER SPRINGS

The following is a summary of terms regarding certain major business points which would be
incorporated in a lease agreement (the “Lease”) between an Affiliate of Sellers
(“Tenant”) and Buyer (“Landlord”) as to the Heber Springs, Arkansas service
facility used the Wireline Business (the “Leased Premises”). Capitalized terms used but
not defined herein shall have the meanings given in the Asset Purchase Agreement (the
“Agreement”) to which this exhibit is attached.

	 	 	 
	RENT:

	 	$6,000 per month.
	 
	 	 
	INSURANCE AND 

MAINTENANCE:

	 	In addition to the Rent, Tenant shall be responsible
for all costs of operating and maintaining the Leased
Premises including insurance and routine maintenance.
	 
	 	 
	TAX LIABILITY:

	 	Total tax liability shall be divided 50% to Tenant and
50% to Landlord. Total tax liability shall be
determined by the appropriate taxing authorities. Tax
payment obligations are based on a daily proration of
Tenant’s occupancy term.
	 
	 	 
	UTILITIES AND MAJOR 

REPAIRS:

	 	All costs for utilities and repairs to major facility
systems shall be divided 50% to Tenant and 50% to
Landlord.
	 
	 	 
	COMMENCEMENT DATE:

	 	The Primary Term shall commence on the Closing Date as
defined in the Agreement.
	 
	 	 
	TERMINATION OF 

PRIMARY TERM:

	 	18 months following the Commencement Date or upon 30
days’ notice by Tenant.
	 
	 	 
	RENEWAL OPTIONS:

	 	None.
	 
	 	 
	USE OF THE LEASED 

PREMISES:

	 	Tenant shall have the right to use and occupy each
tract included in the Leased Premises only for the
purposes consistent with Tenant’s business or the
business of Tenant’s affiliates.
	 
	 	 
	ENVIRONMENTAL 

MATTERS:

	 	Landlord shall indemnify and hold harmless Tenant for
any claims made by third parties for damages arising
out of the

 

 

 

	 	 	 
	 

	 	environmental condition of the Leased Premises that
constitute an Existing Condition.
	 
	INDEMNITY:

	 	Tenant shall indemnify, defend and hold Landlord
harmless from and against any claims arising out of
Tenant’s presence or operations on the Leased
Premises.
	 
	 	 
	RETURN OF LEASED 

PREMISES:

	 	Tenant shall be obligated to return the Leased
Premises to Landlord at the end of the term of the
Lease in substantially the condition such premises
were in on the Commencement Date, ordinary wear and
tear excepted.
	 
	 	 
	RIGHT TO ASSIGN AND 

SUBLEASE:

	 	Tenant shall not have the right to assign or sublease
all or any portion of the Leased Premises without the
written consent of Landlord, such consent not to be
unreasonably withheld; provided that Tenant may assign
or sublease all or any portion of the Leased Premises
at its sole discretion to an affiliate of Tenant or to
any purchaser of all or a portion of Tenant’s assets
or stock.

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