Document:

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                                                                    Exhibit 10.2

                    TWELFTH AMENDMENT TO CREDIT AGREEMENT
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)

      THIS TWELFTH AMENDMENT TO CREDIT AGREEMENT (the "Twelfth Amendment") is
dated as of February 21, 2002 and is made by and among KEY ENERGY SERVICES, INC.
(formerly known as Key Energy Group, Inc.), a Maryland corporation (the
"Borrower"), the LENDERS (as defined in the Credit Agreement), PNC BANK,
NATIONAL ASSOCIATION, as Administrative Agent (the "Administrative Agent"),
NORWEST BANK TEXAS, N.A., as Collateral Agent and PNC CAPITAL MARKETS, INC., as
Arranger.

                                   WITNESSETH:

      WHEREAS, the Borrower, the Lenders, the Administrative Agent, the
Collateral Agent and the Arranger are party to that certain Second Amended and
Restated Credit Agreement, dated as of June 6, 1997, as amended and restated
through September 14, 1998, and as amended by the First Amendment dated as of
November 19, 1998, the Second Amendment dated as of December 29, 1998, the Third
Amendment dated as of April 8, 1999, the Fourth Amendment dated as of April 15,
1999, the Fifth Amendment dated as of May 10, 1999, the Sixth Amendment dated as
of July 14, 1999, the Seventh Amendment dated as of March 1, 2000, the Eighth
Amendment and Consent dated as of February 21, 2001, the Ninth Amendment dated
as of September 17, 2001, the Tenth Amendment dated as of December 13, 2001, and
the Eleventh Amendment dated as of February 21, 2002 (as amended, restated,
supplemented or modified, the "Credit Agreement");

      WHEREAS, in connection with the issuance of the Future Senior Notes, the
holders of the 2001 Senior Notes will be given the opportunity to exchange 2001
Senior Notes for other senior notes issued pursuant to Future Senior Notes
Indentures which are identical, in all material respects, to the Future Senior
Notes;

      WHEREAS, the Future Senior Notes are to be issued on terms identical, in
all material respects, to the terms of the 2001 Senior Notes;

      WHEREAS, the Borrower has requested that the Credit Agreement be amended
to reflect that issuance of up to $325,000,000 of senior notes pursuant to the
Future Senior Notes Indenture will be permitted by the Credit Agreement so long
as the sum of the 2001 Senior Notes and all senior notes to be issued pursuant
to the Future Senior Notes Indenture do not exceed $325,000,000; and

      WHEREAS, capitalized terms used herein shall have the meanings given to
them in the Credit Agreement.

      NOW, THEREFORE, the parties hereto and in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows:

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      1. AMENDMENT TO SECTION 1.1 [DEFINED TERMS]. The defined term "Future
Senior Notes" is hereby amended and restated as follows:

            "FUTURE SENIOR NOTES": senior notes to be issued by the Borrower in
            an aggregate principal amount not to exceed $150,000,000, with a
            maturity of March 1, 2008 or later and with an interest rate not to
            exceed 9.0%; provided, however, that such principal amount may be
            increased dollar for dollar by the aggregate principal amount of
            2001 Senior Notes which are exchanged for senior notes of the same
            series issued pursuant to the Future Senior Notes Indenture;
            provided, further, that in no event may the aggregate outstanding
            principal amount of the 2001 Senior Notes and the Future Senior
            Notes at any time exceed $325,000,000.

      2. REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to
the Administrative Agent and the Lenders that, by its execution and delivery
hereof to the Administrative Agent, as of the Effective Date, after giving
effect to this Twelfth Amendment, no Default or Event of Default has occurred
and is continuing, and the representations and warranties made by the Borrower
and the other Loan Parties in or pursuant to the Credit Agreement or any Loan
Documents are true and correct in all material respects on and as of the
Effective Date as if made on such date (except to the extent that any such
representations and warranties expressly relate to an earlier date, in which
case such representations and warranties were true and correct in all material
respects on and as of such earlier date).

      3. CONDITIONS TO EFFECTIVENESS OF THIS TWELFTH AMENDMENT. This Twelfth
Amendment shall become effective on the date on which the following conditions
have occurred (the "Effective Date"): (a) the Administrative Agent shall have
received a copy of this Twelfth Amendment duly executed and delivered by a duly
authorized officer of the Borrower, the Required Lenders and the Administrative
Agent, (b) the Administrative Agent shall have received the Acknowledgment and
Consent, attached hereto as EXHIBIT A, executed and delivered by a duly
authorized officer of each of the signatories thereto, (c) no Default or Event
of Default shall exist and be continuing, and (d) the Administrative Agent shall
have received such other corporate documents and resolutions as the
Administrative Agent may reasonably request.

      4. MISCELLANEOUS.

            (a) CONTINUING EFFECT OF THE CREDIT AGREEMENT. This Twelfth
Amendment shall not constitute an amendment or waiver of or consent to any
provision of the Credit Agreement not expressly referred to herein and shall not
be construed as an amendment, waiver or consent to any action on the part of the
Borrower that would require an amendment, waiver or consent of the Agents or the
Lenders except as expressly stated herein. Except as expressly consented to
hereby, the provisions of the Credit Agreement and the other Loan Documents are
and shall remain in full force and effect.

            (b) FEES AND EXPENSES. The Borrower agrees to pay or reimburse the
Administrative Agent on demand for all its reasonable out-of-pocket costs and
expenses incurred

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in connection with the preparation and execution of this Amendment, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

            (c) COUNTERPARTS. This Twelfth Amendment may be executed in any
number of counterparts (including by telecopy) by the parties hereto, each of
which counterparts when so executed shall be an original, but all counterparts
taken together shall constitute one and the same instrument.

            (d) GOVERNING LAW. THIS TWELFTH AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS TWELFTH AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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       [SIGNATURE PAGE 1 OF 7 TO TWELFTH AMENDMENT TO CREDIT AGREEMENT]
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)]

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

                                    KEY ENERGY SERVICES, INC. (formerly known
                                    as Key Energy Group, Inc.)

                                    By: /s/ Jack D. Loftis, Jr.
                                        --------------------------------
                                    Title: Sr. VP & General Counsel
                                          ------------------------------

                                    PNC BANK, NATIONAL ASSOCIATION, as
                                    Administrative Agent and as a Lender

                                    By: /s/ Janis L. Tucker
                                        --------------------------------
                                    Title: Vice President
                                          ------------------------------

<PAGE>

       [SIGNATURE PAGE 2 OF 7 TO TWELFTH AMENDMENT TO CREDIT AGREEMENT]
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)]

                                    BANK POLSKA KASA OPIEKI S.A.,
                                    PEKAO S.A. GROUP, NEW YORK BRANCH

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

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       [SIGNATURE PAGE 3 OF 7 TO TWELFTH AMENDMENT TO CREDIT AGREEMENT]
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)]

                                    BANK LEUMI, USA

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

<PAGE>

       [SIGNATURE PAGE 4 OF 7 TO TWELFTH AMENDMENT TO CREDIT AGREEMENT]
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)]

                                    BEAR STEARNS INVESTMENT PRODUCT INC.

                                    By: /s/ Keith C. Barnish
                                        --------------------------------
                                    Title: Authorized Signatory
                                          ------------------------------

                                    BEAR STEARNS CORPORATE LENDING INC.

                                    By: /s/ Keith C. Barnish
                                        --------------------------------
                                    Title: Executive Vice President
                                          ------------------------------

<PAGE>

       [SIGNATURE PAGE 5 OF 7 TO TWELFTH AMENDMENT TO CREDIT AGREEMENT]
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)]

                                    ML CLO XV PILGRIM AMERICA (CAYMAN) LTD.
                                    By:   Pilgrim Investments, Inc.,
                                          as its Investment Manager

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

                                    PILGRIM PRIME RATE TRUST
                                    By:   Pilgrim Investments, Inc.,
                                          as its Investment Manager]

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

<PAGE>

       [SIGNATURE PAGE 6 OF 7 TO TWELFTH AMENDMENT TO CREDIT AGREEMENT]
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)]

                                    LEHMAN COMMERCIAL PAPER, INC.

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

<PAGE>

       [SIGNATURE PAGE 7 OF 7 TO TWELFTH AMENDMENT TO CREDIT AGREEMENT]
              (TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT)]

                                    GENERAL ELECTRIC CAPITAL CORPORATION

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

<PAGE>

                                    EXHIBIT A
                           ACKNOWLEDGMENT AND CONSENT

                           ACKNOWLEDGMENT AND CONSENT

            Each of the undersigned corporations, as a guarantor under that
certain Amended and Restated Master Guarantee and Collateral Agreement, dated as
of June 6, 1997, as amended and restated through September 14, 1998 (as amended,
supplemented or otherwise modified from time to time, the "Guarantee"), made by
each of such corporations in favor of the Collateral Agent, acknowledges the
foregoing amendment and waiver and confirms and agrees that the Guarantee is,
and shall continue to be, in full force and effect and is hereby ratified and
confirmed in all respects and the Guarantee and all of the Collateral (as
defined in the Guarantee) do, and shall continue to, secure the payment of all
of the Obligations (as defined in the Guarantee) pursuant to the terms of the
Guarantee. Capitalized terms not otherwise defined herein shall have the
meanings assigned to them in the Credit Agreement referred to in the Twelfth
Amendment to Credit Agreement to which this Acknowledgment and Consent is
attached.

                                    YALE E. KEY, INC.
                                    KEY ENERGY DRILLING, INC.
                                    WELLTECH EASTERN, INC.
                                    ODESSA EXPLORATION INCORPORATED
                                    KALKASKA OILFIELD SERVICES, INC.
                                    WELL-CO OIL SERVICE, INC.
                                    PATRICK WELL SERVICE, INC.
                                    MOSLEY WELL SERVICE, INC.
                                    RAM OIL WELL SERVICE, INC.
                                    ROWLAND TRUCKING CO., INC.
                                    LANDMARK FISHING & RENTAL, INC.
                                    DUNBAR WELL SERVICE, INC.
                                    FRONTIER WELL SERVICE, INC.
                                    KEY ROCKY MOUNTAIN, INC.
                                    KEY FOUR CORNERS, INC.
                                    JETER SERVICE CO.
                                    JETER WELL SERVICE, INC.
                                    JETER TRANSPORTATION, INC.
                                    INDUSTRIAL OILFIELD SUPPLY, INC.
                                    BROOKS WELL SERVICING, INC.
                                    UPDIKE BROTHERS, INC.
                                    J.W. GIBSON WELL SERVICE COMPANY
                                    KEY ENERGY SERVICES-SOUTH TEXAS, INC.
                                    WATSON OILFIELD SERVICE & SUPPLY, INC.
                                    WELLTECH MID-CONTINENT, INC.
                                    DAWSON PRODUCTION MANAGEMENT, INC.
                                    DAWSON PRODUCTION ACQUISITION CORP.
                                    DAWSON PRODUCTION TAYLOR, INC.
                                    KEY ENERGY SERVICES-CALIFORNIA, INC.

                                    By: /s/ Jack D. Loftis, Jr.
                                        --------------------------------
                                    Title: Vice President
                                          ------------------------------

<PAGE>

                                    DAWSON PRODUCTION PARTNERS, L.P.

                                    By: DAWSON PRODUCTION MANAGEMENT, INC.,
                                        its sole general partner

                                    By: /s/ Jack D. Loftis, Jr.
                                        --------------------------------
                                    Title: Vice President
                                          ------------------------------<PAGE>

                                                                  EXHIBIT 10.204
                      NON-QUALIFIED STOCK OPTION AGREEMENT

                           WILSHIRE TECHNOLOGIES, INC

                             1993 STOCK OPTION PLAN

               THIS NON-QUALIFIED STOCK OPTION AGREEMENT ("Agreement") dated
June 30, 2001, is made and entered into by and between WILSHIRE TECHNOLOGIES,
INC., a California corporation ("Company"), and Charles H. Black ("Optionee").

               1. GRANT OF OPTION. The Company hereby confirms the grant by the
Committee to the Optionee, effective June 30, 2001, of a non-qualified stock
option ("NQO") to purchase up to 2,000 shares of the Company's Common Stock, no
par value per share ("Common Stock"), at a price of $ .14 per share ("Option")
pursuant to the Company's 1993 Stock Option Plan ("Plan"), a copy of which is
attached hereto. All of the terms and conditions of the Plan are hereby
incorporated by reference into this Agreement. Capitalized terms used in this
Agreement but not defined herein shall have the same meanings as in the Plan.
This option is, in its entirety, intended to be a non-qualified stock option
under the provisions of the Code.

               2. DURATION OF OPTION. This option expires on June 30, 2006,
being five (5) years from the date of grant of this option, except that the term
of this Option is subject to earlier termination pursuant to the provisions of
Sections 4, 10 and 13 of the Plan.

               3. VESTING SCHEDULE; EXERCISE OF OPTION

                  (a) This option vests as follows:

                      As to 2,000 shares on December 31, 2001.

                  (b) The vested portion of the Option may be exercised, to the
extent not previously exercised, in whole or in part at any time, or from time
to time, prior to the expiration of the Option. Written notice of the exercise
of all or any part of this Option shall be given to the Secretary of the Company
and shall be deemed to have been received either when delivered personally to
the office of the Secretary or at 11:59 p.m. on the date of any U.S. Postal
Service postmark on the notice. Such notice shall be irrevocable and shall
specify the number of shares to be purchased and the purchase price to be paid
therefor and must be accompanied by the payment of the purchase price as
provided in SECTION 4 below. Upon the exercise of this option, the Company will
issue or cause to be issued a certificate or certificates for the Common Stock
being purchased as promptly as practicable.

               4. PAYMENT OF OPTION PRICE. The Purchase price of Common Stock
upon any exercise of this option shall be paid in full to the Company at the
time of such exercise in cash (including by check) or, subject to the approval
of the Committee, by the surrender to the Company of shares of previously
acquired Common Stock which shall be valued at the fair market value on the date
this option is exercised (determined by the Committee in accordance with the
method for establishing fair market value contained in Section 8 of the Plan),
or by a combination of cash and Common Stock.

                                       1
<PAGE>

               5. NONTRANSFERABILITY OF OPTION. This option shall not be
transferable or assignable by the Optionee, other than by will or the laws of
descent and distribution or pursuant to a qualified domestic relations order as
defined by the Code or Title I of the Employee Retirement Income Security Act,
and shall only be exercisable during the Optionee's lifetime by him or his
guardians, conservators or other legal representatives. This option shall not be
pledged or hypothecated in any way and shall not be subject to execution,
attachment, or similar process without the express written consent of the
Committee.

               6. OPTIONEE BOUND BY PLAN. The Optionee hereby acknowledges
receipt of the attached copy of the Plan and agrees to be bound by all the terms
and provisions thereof, as amended, and by all determinations of the Committee
thereunder.

               IN WITNESS WHEREOF, this Agreement has been executed in duplicate
on behalf of the Company by its officer thereunto duly authorized, and by the
Optionee, in acceptance of the above mentioned Option, subject to the terms of
the Plan and of this Agreement, all as of the day and year first above written.

                                      WILSHIRE TECHNOLOGIES, INC.

                                      By:  /s/ KEVIN MULVIHILL
                                         --------------------------------------
                                           Kevin Mulvihill
                                           President and Chief Executive Officer

                                       2
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        I hereby accept the foregoing stock option on the terms and conditions
herinabove stated.

        I understand that the shares issuable to me on exercise of this option
have not been registered under the Securities Act of 1933 and that the Company
has no intention of so registering such shares.

                                               /s/ Charles Black
                                             ----------------------------------
                                                 Charles H. Black
                                                 Optionee

                                       3
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                               EXERCISE OF OPTION

        The undersigned hereby irrevocably elects to exercise the right to
purchase _______________ shares of Common Stock of Wilshire Technologies, Inc.
(the "Shares"), such right being represented by the Stock Option granted to me
on June 30, 2001 and herewith tenders payment for the Shares to the order of
Wilshire Technologies, Inc., in the amount of $________________ (equal to [the
number of shares] multiplied by $_________ [the exercise price stated in the
Stock Option]).

        The undersigned requests that a certificate for the Shares be registered
in the of ____________, and delivered to, the undersigned at the following
address:

_______________________________________________

_______________________________________________

_______________________________________________

                       ___________________________________
                             (Please print or type)

Date:___________      Signature_______________________________

                    Social Security Number______-___-_______

                                       4

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