Document:

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                     MEMBERSHIP INTEREST EXCHANGE AGREEMENT

                                      DATED

                                  APRIL 5, 2000

                                 BY AND BETWEEN

                              TETRA SERVICES, INC.,

                                       AND

                           BROOKS WELL SERVICING, INC.

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                     MEMBERSHIP INTEREST EXCHANGE AGREEMENT

                                TABLE OF CONTENTS

<TABLE>
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                                                                           Page
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I.  EXCHANGE OF MEMBERSHIP INTERESTS........................................1
         1.1  Exchange of Membership Interests..............................1
II.  CLOSING................................................................2
         2.1  Closing.......................................................2
III.  REPRESENTATIONS AND WARRANTIES........................................3
         3.1  Representations and Warranties of TSI.........................3
         3.2  Representations and Warranties of BROOKS......................8
IV.  COVENANTS.............................................................12
         4.1  Covenants of Parties.........................................12
V.  NONCOMPETITION AND NONSOLICITATION.....................................16
         5.1  Covenants of TSI.............................................16
         5.2  Covenants of BROOKS..........................................17
         5.3  Definition of Territory......................................18
         5.4  Injunctive Relief............................................18
         5.5  Reasonableness of Covenants..................................18
         5.6  Severability of Covenants....................................18
         5.7  Independent Covenants........................................18
         5.8  Materiality..................................................18
VI.  INDEMNITY.............................................................18
         6.1  Indemnification by TSI.......................................18
         6.2  Indemnification by BROOKS....................................19
         6.3  Conditions of Indemnification................................20
         6.4  Limitation of Liability......................................21
         6.5  Survival.....................................................21
VII.  MISCELLANEOUS PROVISIONS.............................................22
         7.1  Expenses.....................................................22
         7.2  Notice.......................................................22
         7.3  Governing Law................................................23
         7.4  Entire Agreement; Amendments and Waivers.....................23
         7.5  Severability.................................................23
         7.6  Headings and Schedules.......................................23
         7.7  Assignment; Successors Bound.................................23
         7.8  Execution in Counterparts....................................23
</TABLE>

         Exhibit A - Dawson Freer Lease
         Exhibit B - TSI Edinburgh Sublease
         Exhibit C - Estoppel Certificate
         Exhibit D - Confidentiality Agreement

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                     MEMBERSHIP INTEREST EXCHANGE AGREEMENT

         THIS MEMBERSHIP INTEREST EXCHANGE AGREEMENT (this "AGREEMENT") is made
and entered into as of this 5th day of April, 2000, by and between TETRA
Services, Inc., a Texas corporation ("TSI"), and Brooks Well Servicing, Inc., a
Delaware corporation ("BROOKS"). TSI and BROOKS may be from time to time
individually referred to as a "PARTY" or collectively referred to herein as the
"PARTIES."

                              W I T N E S S E T H:

         WHEREAS, TSI is engaged in the business of providing oil and gas frac
tank rental and vacuum truck services throughout the State of Texas and desires
to transfer all of said business to BROOKS (the "FRAC TANK AND VACUUM
BUSINESS"); and

         WHEREAS, TSI is the sole member of KVAC, LLC, a Texas limited liability
company (the "TETRA LLC"), which is the owner of all of the operating assets of
the Frac Tank and Vacuum Business;

         WHEREAS, BROOKS is engaged in the business of providing oil and gas
well production testing, pipe testing, liquid mud and wireline (slick line)
services throughout the States of Texas and Louisiana and in the Gulf of Mexico
and desires to transfer all of said business to TSI, except for the pipe testing
business and assets located in Caldwell, Texas (the "PRODUCTION AND PIPE TESTING
BUSINESS");

         WHEREAS, BROOKS is the sole member of T-Production Testing, LLC, a
Texas limited liability company (the "BROOKS LLC"), which is the owner of all of
the operating assets of the Production and Pipe Testing Business; and

         WHEREAS, TSI and BROOKS each desire to exchange and acquire the
respective above-described businesses conducted by TETRA LLC and BROOKS LLC, by
exchanging all of the membership interests held by such Party with the other
Party as herein provided;

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

         I.       EXCHANGE OF MEMBERSHIP INTERESTS

                  1.1 EXCHANGE OF MEMBERSHIP INTERESTS. Subject to the terms and
         conditions contained in this Agreement and in reliance upon the
         representations, warranties, covenants and agreements contained in this
         Agreement, TSI hereby transfers, assigns and sells to BROOKS all of its
         membership interests in and to TETRA LLC (the "TETRA LLC MEMBERSHIP
         INTERESTS"), and, in consideration therefor, BROOKS hereby transfers,
         assigns and sells to TSI all of its membership interests in and to
         BROOKS LLC (the "BROOKS LLC MEMBERSHIP INTERESTS"). The Parties
         acknowledge and agree that to the extent available, it is the intent of
         the Parties to obtain "like kind exchange" treatment for federal income
         tax purposes pursuant to Section 1031 of the Internal Revenue

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         Code of 1986, as amended, (the "CODE") with respect to the particular
         assets held by TETRA LLC and BROOKS LLC pursuant to the exchange of
         membership interests contemplated herein.

         II.      CLOSING

                  2.1 CLOSING. The consummation of the transactions contemplated
         by this Agreement (the "CLOSING") occurred at 8:00 p.m., Houston, Texas
         time, at the offices of Jenkens & Gilchrist P.C., 1100 Louisiana, Suite
         1800, Houston, Texas, on April 5, 2000 (the "CLOSING DATE"). At the
         Closing, the following events occurred, each such event under the
         control of one Party hereto being a condition precedent to the events
         under the control of the other Party, and each such event being deemed
         to have occurred simultaneously with the other events:

                           (a) TRANSFER OF MEMBERSHIP INTERESTS. TSI has
                  delivered to BROOKS (1) a certificate representing 100% of the
                  outstanding membership interests of TETRA LLC, and (2) a
                  certified copy of the Articles of Organization and the
                  Regulations (and any amendments thereto) of TETRA LLC
                  evidencing its existence as a single member limited liability
                  company with a single member. BROOKS has delivered to TSI (1)
                  a certificate representing 100% of the outstanding membership
                  interests of BROOKS LLC, and (2) a certified copy of the
                  Articles of Organization and the Regulations (and any
                  amendments thereto) of BROOKS LLC evidencing its existence as
                  a single member limited liability company with a single
                  member.

                           (b) EVIDENCE OF RELEASE OF LIENS ON ASSETS. Each of
                  TSI and BROOKS has delivered to the other Party evidence of
                  the release of all liens or encumbrances existing with respect
                  to either Party's membership interest in TETRA LLC and BROOKS
                  LLC, respectively, and to all of the TETRA LLC Assets (as
                  defined in Section 3.1(g) herein) and the BROOKS LLC Assets
                  (as defined in Section 3.2(g) herein), respectively.

                           (c) CERTIFICATE OF SECRETARY. Each of TSI and BROOKS
                  has delivered to each other a certificate of their respective
                  Secretary or equivalent representative, certifying true and
                  correct copies of their respective articles of incorporation,
                  bylaws and resolutions duly adopted by the Board of Directors
                  of such company authorizing the execution, delivery and
                  performance of this Agreement, each in a form and substance
                  reasonably satisfactory to the other Party. Each of TSI and
                  BROOKS has provided to the other Party good standing/existence
                  certificates for TSI and TETRA LLC, and from BROOKS and
                  BROOKS, LLC, as the case may be, from appropriate state
                  authorities of their states of incorporation and formation.

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                           (d) RESIGNATIONS. If TETRA LLC or BROOKS LLC has any
                  officers or managers acting on its respective behalf, such
                  entity has delivered duly executed resignations of all of its
                  officers and/or managers.

                           (e) DELIVERY OF MINUTE BOOKS AND RECORDS. Each of TSI
                  and BROOKS has delivered to the other Party all minute books,
                  membership interest transfer books, tax records and other
                  records with respect to the ownership, operation and business
                  of TETRA LLC and BROOKS LLC, respectively.

                           (f) EVIDENCE OF VEHICLE TITLE. At or prior to the
                  Closing, TSI has delivered to BROOKS true and correct copies
                  of all of the titles for all of the vehicles owned by TETRA
                  LLC. At or prior to the Closing, BROOKS has delivered to TSI
                  true and correct copies of all of the titles for all of the
                  vehicles owned by BROOKS LLC.

                           (g) LEASES AND SUBLEASES. DAWSON PRODUCTION PARTNERS,
                  L.P., an affiliate of BROOKS, and TSI shall have entered into
                  the lease in the form attached hereto as EXHIBIT "A" (the
                  "DAWSON FREER LEASE") and have delivered a fully-executed
                  version of the DAWSON Freer Lease to the Parties. BROOKS and
                  TSI shall have entered into the sublease in the form attached
                  hereto as EXHIBIT "B" (the "TSI EDINBURGH SUBLEASE") and have
                  delivered a fully-executed version of the TSI Edinburgh
                  Sublease to the Parties. TSI shall also obtain and deliver to
                  BROOKS an estoppel certificate in substantially the form
                  attached hereto as EXHIBIT "C" for the TSI lease in Edinburgh,
                  Texas.

                           (h) LEGAL OPINIONS. At the Closing, legal counsel for
                  TSI shall have delivered a legal opinion in form and substance
                  satisfactory to BROOKS. At the Closing, legal counsel for
                  BROOKS shall have delivered a legal opinion in form and
                  substance satisfactory to TSI.

         III.     REPRESENTATIONS AND WARRANTIES

                  3.1 REPRESENTATIONS AND WARRANTIES OF TSI. TSI hereby
         represents and warrants to BROOKS as of the Closing Date as follows:

                           (a) ORGANIZATION. TSI is a corporation duly
                  organized, validly existing and in good standing under the
                  laws of the State of Texas, and has the requisite corporate
                  power to carry on its business as now being conducted.

                           (b) POWER AND AUTHORITY; ENFORCEABILITY. TSI has all
                  requisite corporate power to enter into this Agreement and to
                  perform its obligations hereunder. This Agreement has been
                  duly authorized by all necessary corporate action on the part
                  of TSI, executed and delivered on behalf of TSI, and, assuming
                  due authorization, execution and delivery by BROOKS,
                  constitutes a legal, valid and binding obligation of TSI,

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                  enforceable in accordance with its terms, except that (i) such
                  enforcement may be limited by bankruptcy, insolvency,
                  reorganization, moratorium or similar laws relating to or
                  affecting creditors' rights generally and (ii) the remedy of
                  specific performance and injunction and other forms of
                  equitable relief may be subject to equitable defenses and to
                  the discretion of the court before which any proceeding
                  therefor may be brought.

                           (c) LIMITED LIABILITY COMPANY EXISTENCE AND
                  QUALIFICATION OF TETRA LLC. TETRA LLC is a limited liability
                  company duly organized, validly existing and in good standing
                  under the laws of the State of Texas and has the requisite
                  power to own, operate and lease its properties and to carry on
                  its business as presently conducted. TETRA LLC has no
                  subsidiaries and has no ownership or equity interest in any
                  individual, partnership, joint venture, corporation, limited
                  liability company, bank, trust or unincorporated organization
                  (a "PERSON").

                           (d) CAPITALIZATION AND OWNERSHIP. TSI is the 100%
                  owner of all of the membership interests of TETRA LLC and no
                  other membership interests or equity interests are authorized
                  or outstanding. All of such membership interests are fully
                  paid and non-assessable and were not issued in violation of
                  any preemptive or other rights of any Person to acquire
                  securities of TETRA LLC. TSI is the lawful owner of all the
                  outstanding TETRA LLC Membership Interests, with full right,
                  power and authority to sell and transfer the membership
                  interests, free and clear of any and all security interests,
                  liens, proxies, member agreements, voting agreements, voting
                  trusts, encumbrances and adverse claims, to BROOKS pursuant to
                  the provisions of this Agreement. TSI has no other commitment,
                  plan or arrangement to issue or sell any of the TETRA LLC
                  Membership Interests or to issue or sell any options, warrants
                  or other securities that are convertible or exchangeable for
                  such membership interests.

                           (e) NO CONFLICTS. Neither the execution and delivery
                  of this Agreement nor the consummation of the transactions
                  contemplated herein (i) will conflict with or result in a
                  breach, default or violation of (A) any of the terms,
                  provisions or conditions of the Articles of Incorporation or
                  Bylaws of TSI or the Articles of Organization or Regulations
                  of TETRA LLC, or (B) any material agreement, document,
                  instrument, judgment, decree, order, governmental permit,
                  certificate or license to which TSI or TETRA LLC is a party or
                  to which they are subject or by which their property is bound,
                  (ii) will result in the creation of any lien, charge or other
                  encumbrance on any material property or asset of TETRA LLC, or
                  (iii) will require TSI or TETRA LLC to obtain the consent of
                  any third party.

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                           (f) NO BUSINESS ACTIVITIES. With the exception of
                  ownership of the operating assets of the Frac Tank and Vacuum
                  Business, TETRA LLC has not engaged in any business
                  activities.

                           (g) ASSETS; TITLE TO ASSETS. Schedule 3.1(g) includes
                  a complete and accurate list or description of all assets (the
                  "TETRA LLC ASSETS") owned by TETRA LLC. TETRA LLC has good and
                  marketable title to all of the TETRA LLC Assets, in each case
                  free and clear of any lien, encumbrance, mortgage, deed of
                  trust, pledge or other similar security interest ("LIEN"),
                  except Liens for property and ad valorem taxes, assessments
                  and other applicable governmental charges not due and payable.
                  TETRA LLC does not own or lease, and has never owned or
                  leased, any real property. SUBJECT ONLY TO THE EXPRESS
                  REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT,
                  ALL OF THE TETRA LLC ASSETS ARE TRANSFERRED "AS-IS",
                  "WHERE-IS" AND "WITH ALL FAULTS". TSI MAKES NO REPRESENTATIONS
                  OR WARRANTIES AS TO THE CONDITION, MERCHANTABILITY OR FITNESS
                  FOR A PARTICULAR PURPOSE OF ANY OF THE TETRA LLC ASSETS.

                           (h) INTELLECTUAL PROPERTY. Other than the name "TETRA
                  LLC", TETRA LLC does not own or possess any licenses or other
                  rights to use any patents, patent applications, trademarks,
                  copyrights, service marks or trade names.

                           (i) INSURANCE. Liability and casualty insurance
                  coverage is maintained for the TETRA LLC Assets and such
                  coverage is adequate for the repair and replacement of such
                  TETRA LLC Assets. Such insurance coverage has continued
                  through the Closing Date.

                           (j) TAX MATTERS. All federal, state and other tax
                  returns and reports required to be filed by or on behalf of
                  TETRA LLC and its predecessors have been duly filed, except
                  those for which extensions have been obtained. All taxes and
                  other assessments and levies (including all interest and
                  penalties) and all installments of estimated taxes required to
                  be paid, withheld or collected by TETRA LLC have been duly
                  paid, withheld or collected, as the case may be, and the same
                  have been paid over to the proper governmental agencies or
                  segregated and set aside for such payment as required by law.
                  TETRA LLC has not received any notice of an assessment,
                  deficiency notice, 30-day letter, or similar notice with
                  respect to sales tax or other taxes from any taxing authority
                  with respect to any taxable period ending on or before the
                  Closing Date. TETRA LLC has not executed or filed with any
                  taxing authority any agreement extending the period for
                  assessment or collection of any taxes or made any election or
                  taken any action to jeopardize the status of TETRA LLC as a
                  disregarded entity for U. S. federal income tax purposes.
                  TETRA LLC is not a party to any pending action or proceeding

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                  by any governmental authority for assessment or collection of
                  taxes and no claim for assessment or collection of taxes has
                  been asserted against it.

                           (k) CUSTOMERS. Schedule 3.1(k) contains and true and
                  correct listing of all customers of the Frac Tank and Vacuum
                  Business since January 1, 1999. Except as set forth on
                  Schedule 3.1(k), there has not been any material adverse
                  change in the business relationship of TSI or TETRA LLC with
                  any customer or supplier listed on such schedule.

                           (l) EMPLOYEE MATTERS. TETRA LLC does not have and
                  has never had any employees. TETRA LLC does not sponsor or
                  contribute to, has never sponsored or contributed to, and has
                  never been required to contribute to, any "employee benefit
                  plan", as defined by Section 3(3) of the Employee Retirement
                  Income Security Act of 1974, as amended ("ERISA"), including
                  without limitation, any employee welfare benefit plan, any
                  employee pension benefit plan, or any other plan, program or
                  arrangement for the benefit of, relating to or with any
                  employee of any Person.

                           (m) LEGAL COMPLIANCE. TSI is conducting and has,
                  since October 1, 1998, and to its knowledge, at all times on
                  or prior thereto, conducted the Frac Tank and Vacuum Business
                  in compliance with all applicable federal, state, local and
                  foreign laws, regulations and orders ("LAWS AND REGULATIONS"),
                  including without limitation the rules and regulations of the
                  United States Occupational Safety and Health Administration
                  and the United States Environmental Protection Agency. TSI has
                  not since October 1, 1998, to its knowledge, at any time on or
                  prior thereto, received any notice or communication from any
                  Governmental Entity alleging noncompliance with any applicable
                  Laws and Regulations.

                           (n) ENVIRONMENTAL COMPLIANCE. TSI has, to its
                  knowledge, operated the Frac Tank and Vacuum Business and the
                  TETRA LLC Assets in material compliance with all applicable
                  federal, state, county and local environmental laws, statutes,
                  regulations, ordinances and administrative agency orders
                  ("ENVIRONMENTAL LAWS") and to TSI's knowledge, there are no
                  current or pending civil or administrative enforcement
                  actions, penalties, judgments, costs or liabilities against
                  the Frac Tank and Vacuum Business or the TETRA LLC Assets
                  resulting from any violation of Environmental Laws. TSI has
                  provided BROOKS with all information in TSI's possession or
                  control relating to the existence of contamination resulting
                  from the release or disposal of hazardous substances, solid or
                  hazardous wastes, or petroleum substances at, in, on or under
                  any facility or property leased, owned or used in connection
                  with the Frac Tank and Vacuum Business or the TETRA LLC Assets
                  and any conditions existing as a result of such releases or
                  disposal that could substantially interfere with the use of
                  said business or assets.

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                           (o) LITIGATION, JUDGMENTS, ETC. Except as described
                  on Schedule 3.1(o), there are no actions, suits,
                  investigations or proceedings relating to or which may have a
                  material adverse affect on the Frac Tank and Vacuum Business
                  to which TSI or the TETRA LLC is a party pending in any court
                  or before or by any federal, state or other governmental
                  department, commission, agency or other instrumentality
                  (excluding any rule making, investigation, or similar
                  proceeding of general applicability and any appeal or petition
                  for review relating thereto), or before any arbitrator
                  ("PROCEEDINGS"), and TSI has not received written notice, or
                  to TSI's knowledge any oral notice, threatening any such
                  matter. TETRA LLC is not a party to any Proceeding, and, to
                  TSI's knowledge, no facts exist which could result in TETRA
                  LLC being made a party to any Proceeding. Neither TSI nor
                  TETRA LLC is in default with respect to any judgment, order,
                  writ, injunction, decree or award applicable to it of any
                  court or other governmental instrumentality or arbitrator
                  having jurisdiction over it.

                           (p) MINUTE BOOK AND CHARTER DOCUMENTS. The minute
                  book of TETRA LLC that has been delivered to BROOKS
                  constitutes the sole minute book of TETRA LLC and contains a
                  complete and accurate record of all actions of the sole member
                  of TETRA LLC. TSI has delivered to BROOKS true and correct
                  copies of the Articles of Organization and Regulations of
                  TETRA LLC as currently in effect.

                           (q) DISCLOSURE OF FACTS. No representation, warranty
                  or statement by TSI in this Agreement or in TSI's disclosure
                  schedules referred to herein contains any untrue statement of
                  material fact, or omits to state a fact necessary in order to
                  make such representation, warranty or statement not materially
                  misleading. There are no facts peculiar to TSI or TETRA LLC
                  that TSI has not disclosed to BROOKS that materially adversely
                  affect, or insofar as TSI can reasonably foresee, would
                  materially adversely affect, the Frac Tank and Vacuum Business
                  or the TETRA LLC Assets if such business or assets were to be
                  continued to be owned by TSI.

                           (r) NO BROKERS OR FINDERS. Except as set forth on
                  Schedule 3.1(r), TSI has not entered into any agreement,
                  understanding or arrangement with any broker or finder, and
                  has not incurred any brokerage or finder's fees or agent's
                  commissions or other similar charges to any person or entity
                  with respect to the transactions contemplated by this
                  Agreement.

                           (s) INTERCOMPANY MATTERS. Except as otherwise set
                  forth on Schedule 3.1(s), there are no contracts, loans or
                  other transactions existing as of the Closing Date between
                  TETRA LLC and TSI or any of its affiliated companies, and all
                  intercompany accounts, if any, will be adjusted to zero at or
                  prior to the Closing.

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<PAGE>

                           (t) INVESTOR REPRESENTATIONS. TSI is acquiring the
                  membership interests in BROOKS LLC for its own account, for
                  investment purposes, and not with a view to (or for sale in
                  connection with) any distribution of such securities.

                  3.2 REPRESENTATIONS AND WARRANTIES OF BROOKS. BROOKS hereby
         represents and warrants to TSI as of the Closing Date as follows:

                           (a) ORGANIZATION. BROOKS is a corporation duly
                  organized, validly existing and in good standing under the
                  laws of the State of Delaware, and has the requisite corporate
                  power to carry on its business as now being conducted.

                           (b) POWER AND AUTHORITY; ENFORCEABILITY. BROOKS has
                  all requisite corporate power to enter into this Agreement and
                  to perform its obligations hereunder. This Agreement has been
                  duly authorized by all necessary corporate action on the part
                  of BROOKS, executed and delivered on behalf of BROOKS, and,
                  assuming due authorization, execution and delivery by BROOKS,
                  constitutes a legal, valid and binding obligation of BROOKS,
                  enforceable in accordance with its terms, except that (i) such
                  enforcement may be limited by bankruptcy, insolvency,
                  reorganization, moratorium or similar laws relating to or
                  affecting creditors' rights generally and (ii) the remedy of
                  specific performance and injunction and other forms of
                  equitable relief may be subject to equitable defenses and to
                  the discretion of the court before which any proceeding
                  therefor may be brought.

                           (c) LIMITED LIABILITY COMPANY EXISTENCE AND
                  QUALIFICATION OF BROOKS LLC. BROOKS LLC is a limited liability
                  company duly organized, validly existing and in good standing
                  under the laws of the State of Texas and has the requisite
                  power to own, operate and lease its properties and to carry on
                  its business as presently conducted. BROOKS LLC has no
                  subsidiaries and has no ownership or equity interest in any
                  individual, partnership, joint venture, corporation, limited
                  liability company, bank, trust or unincorporated organization
                  (a "PERSON").

                           (d) CAPITALIZATION AND OWNERSHIP. BROOKS is the 100%
                  owner of all of the membership interests of BROOKS LLC and no
                  other membership interests or equity interests are authorized
                  or outstanding. All of such membership interests are fully
                  paid and non-assessable and were not issued in violation of
                  any preemptive or other rights of any Person to acquire
                  securities of BROOKS LLC. BROOKS is the lawful owner of all
                  the outstanding BROOKS LLC Membership Interests, with full
                  right, power and authority to sell and transfer the membership
                  interests, free and clear of any and all security interests,
                  liens, proxies, member agreements, voting agreements, voting
                  trusts, encumbrances and adverse claims, to BROOKS pursuant to
                  the provisions of this Agreement. BROOKS has no

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                  other commitment, plan or arrangement to issue or sell any of
                  the BROOKS LLC Membership Interests or to issue or sell any
                  options, warrants or other securities that are convertible or
                  exchangeable for such membership interests.

                           (e) NO CONFLICTS. Neither the execution and delivery
                  of this Agreement nor the consummation of the transactions
                  contemplated herein (i) will conflict with or result in a
                  breach, default or violation of (A) any of the terms,
                  provisions or conditions of the Articles of Incorporation or
                  Bylaws of BROOKS or the Articles of Organization or
                  Regulations of BROOKS LLC, or (B) any material agreement,
                  document, instrument, judgment, decree, order, governmental
                  permit, certificate or license to which BROOKS or BROOKS LLC
                  is a party or to which they are subject or by which their
                  property is bound, (ii) will result in the creation of any
                  lien, charge or other encumbrance on any material property or
                  asset of BROOKS LLC, or (iii) will require BROOKS or BROOKS
                  LLC to obtain the consent of any third party.

                           (f) NO BUSINESS ACTIVITIES. With the exception of
                  ownership of the operating assets of the Production and Pipe
                  Testing Business, BROOKS LLC has not engaged in any business
                  activities.

                           (g) ASSETS; TITLE TO ASSETS. Schedule 3.2(g) includes
                  a complete and accurate list or description of all assets (the
                  "BROOKS LLC ASSETS") owned by BROOKS LLC. BROOKS LLC has good
                  and marketable title to all of the BROOKS LLC Assets, in each
                  case free and clear of any lien, encumbrance, mortgage, deed
                  of trust, pledge or other similar security interest ("LIEN"),
                  except Liens for property and ad valorem taxes, assessments
                  and other applicable governmental charges not due and payable.
                  BROOKS does not own or lease, and has never owned or leased,
                  any real property. SUBJECT ONLY TO THE EXPRESS REPRESENTATIONS
                  AND WARRANTIES CONTAINED IN THIS AGREEMENT, ALL OF THE BROOKS
                  LLC ASSETS ARE TRANSFERRED "AS-IS", "WHERE-IS" AND "WITH ALL
                  FAULTS". BROOKS MAKES NO REPRESENTATIONS OR WARRANTIES AS TO
                  THE CONDITION, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
                  PURPOSE OF ANY OF THE BROOKS LLC ASSETS.

                           (h) INTELLECTUAL PROPERTY. Other than the name
                  "BROOKS LLC", BROOKS LLC does not own or possess any licenses
                  or other rights to use any patents, patent applications,
                  trademarks, copyrights, service marks or trade names.

                           (i) INSURANCE. Liability and casualty insurance
                  coverage is maintained for the BROOKS LLC Assets and such
                  coverage is adequate for the repair and replacement of such
                  BROOKS LLC Assets. Such insurance coverage has continued
                  through the Closing Date.

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                           (j) TAX MATTERS. All federal, state and other tax
                  returns and reports required to be filed by or on behalf of
                  BROOKS LLC and its predecessors have been duly filed, except
                  those for which extensions have been obtained. All taxes and
                  other assessments and levies (including all interest and
                  penalties) and all installments of estimated taxes required to
                  be paid, withheld or collected by BROOKS LLC have been duly
                  paid, withheld or collected, as the case may be, and the same
                  have been paid over to the proper governmental agencies or
                  segregated and set aside for such payment as required by law.
                  BROOKS LLC has not received any notice of an assessment,
                  deficiency notice, 30-day letter, or similar notice with
                  respect to sales tax or other taxes from any taxing authority
                  with respect to any taxable period ending on or before the
                  Closing Date. BROOKS LLC has not executed or filed with any
                  taxing authority any agreement extending the period for
                  assessment or collection of any taxes or made any election or
                  taken any action to jeopardize the status of BROOKS LLC as a
                  disregarded entity for U. S. federal income tax purposes.
                  BROOKS LLC is not a party to any pending action or proceeding
                  by any governmental authority for assessment or collection of
                  taxes and no claim for assessment or collection of taxes has
                  been asserted against it.

                           (k) CUSTOMERS. SCHEDULE 3.2 (k) contains a true and
                  correct listing of all customers of the Production and Pipe
                  Testing Business since January 1, 1999. Except as set forth on
                  Schedule 3.1(k), there has not been any material adverse
                  change in the business relationship of BROOKS or BROOKS LLC
                  with any customer or supplier listed on such schedule.

                           (l) EMPLOYEE MATTERS. BROOKS LLC does not have and
                  has never had any employees. BROOKS LLC does not sponsor or
                  contribute to, has never sponsored or contributed to, and has
                  never been required to contribute to, any "employee benefit
                  plan", as defined by Section 3(3) of the ERISA, including
                  without limitation, any employee welfare benefit plan, any
                  employee pension benefit plan, or any other plan, program or
                  arrangement for the benefit of, relating to or with any
                  employee of any Person.

                           (m) LEGAL COMPLIANCE. BROOKS is conducting and has,
                  since October 1, 1998, and to its knowledge, at all times on
                  or prior thereto, conducted the Production and Pipe Testing
                  Business in compliance with all applicable Laws and
                  Regulations, including, without limitation, the rules and
                  regulations of the United States Occupational Safety and
                  Health Administration and the United States Environmental
                  Protection Agency. BROOKS has not since October 1, 1998, to
                  its knowledge, at any time on or prior thereto, received any
                  notice or communication from any Governmental Entity alleging
                  noncompliance with any applicable Laws and Regulations.

                                       10

<PAGE>

                           (n) ENVIRONMENTAL COMPLIANCE. BROOKS has, to its
                  knowledge, operated the Production and Pipe Testing Business
                  and the BROOKS LLC Assets in material compliance with all
                  applicable federal, state, county and local environmental
                  laws, statutes, regulations, ordinances and administrative
                  agency orders ("ENVIRONMENTAL LAWS") and to BROOKS's
                  knowledge, there are no current or pending civil or
                  administrative enforcement actions, penalties, judgments,
                  costs or liabilities against the Production and Pipe Testing
                  Business resulting from any violation of Environmental Laws.
                  BROOKS has provided TSI with all information in BROOKS's
                  possession or control relating to the existence of
                  contamination resulting from the release or disposal of
                  hazardous substances, solid or hazardous wastes, or petroleum
                  substances at, in, on or under any facility or property
                  leased, owned or used in connection with the Production and
                  Pipe Testing Business or the BROOKS LLC Assets and any
                  conditions existing as a result of such releases or disposal
                  that could substantially interfere with the use of said
                  business or assets.

                           (o) LITIGATION, JUDGMENTS, ETC. Except as described
                  on Schedule 3.2(o), there are no actions, suits,
                  investigations or proceedings relating to or which may have a
                  material adverse effect on the Production and Pipe Testing
                  Business to which BROOKS or the BROOKS LLC is a party pending
                  in any court or before or by any federal, state or other
                  governmental department, commission, agency or other
                  instrumentality (excluding any rule making, investigation, or
                  similar proceeding of general applicability and any appeal or
                  petition for review relating thereto), or before any
                  arbitrator ("PROCEEDINGS"), and BROOKS has not received
                  written notice, or to BROOKS's knowledge any oral notice,
                  threatening any such matter. BROOKS LLC is not a party to any
                  Proceeding, and, to BROOKS's knowledge, no facts exist which
                  could result in BROOKS LLC being made a party to any
                  Proceeding. Neither BROOKS nor BROOKS LLC is in default with
                  respect to any judgment, order, writ, injunction, decree or
                  award applicable to it of any court or other governmental
                  instrumentality or arbitrator having jurisdiction over it.

                           (p) MINUTE BOOK AND CHARTER DOCUMENTS. The minute
                  book of BROOKS LLC that has been delivered to TSI constitutes
                  the sole minute book of BROOKS LLC and contains a complete and
                  accurate record of all actions of the sole member of BROOKS
                  LLC. BROOKS has delivered to TSI true and correct copies of
                  the Articles of Organization and Regulations of BROOKS LLC as
                  currently in effect.

                           (q) DISCLOSURE OF FACTS. No representation, warranty
                  or statement by BROOKS in this Agreement or in BROOKS's
                  disclosure schedules referred to herein contains any untrue
                  statement of material fact, or omits to state a fact necessary
                  in order to make such representation,

                                       11
<PAGE>

                  warranty or statement not materially misleading. There are no
                  facts peculiar to BROOKS or BROOKS LLC that BROOKS has not
                  disclosed to TSI that materially adversely affect, or insofar
                  as BROOKS can reasonably foresee, would materially adversely
                  affect, the Production and Pipe Testing Business or the
                  BROOKS LLC Assets if such business or assets were to be
                  continued to be owned by BROOKS.

                           (r) NO BROKERS OR FINDERS. Except as set forth on
                  Schedule 3.2(r), BROOKS has not entered into any agreement,
                  understanding or arrangement with any broker or finder, and
                  has not incurred any brokerage or finder's fees or agent's
                  commissions or other similar charges to any person or entity
                  with respect to the transactions contemplated by this
                  Agreement.

                           (s) INTERCOMPANY MATTERS. Except as otherwise set
                  forth on Schedule 3.2(s), there are no contracts, loans or
                  other transactions existing as of the Closing Date between
                  BROOKS LLC and BROOKS or any of its affiliated companies, and
                  all intercompany accounts, if any, will be adjusted to zero at
                  or prior to the Closing.

                           (t) INVESTOR REPRESENTATIONS. BROOKS is acquiring the
                  membership interests in the TETRA LLC for its own account, for
                  investment purposes, and not with a view to (or for sale in
                  connection with) any distribution of such securities.

         IV.      COVENANTS

                  4.1 COVENANTS OF PARTIES. The Parties hereby covenant and
         agree as follows:

                           (a) ACCESS. Each of TSI and BROOKS acknowledges that
                  it has permitted the other Party and its authorized employees,
                  agents, accountants, legal counsel and other representatives
                  to have access to the books, records, facilities, properties,
                  personnel and officers of TSI and TETRA LLC, or BROOKS and
                  BROOKS LLC, as the case may be, and has caused the employees,
                  legal counsel, accountants, engineers and other
                  representatives of such companies to be available to the
                  reviewing Party for such purposes.

                           (b) PRESS RELEASES. None of TSI, BROOKS or their
                  respective affiliates shall issue or cause publication of any
                  press release or other announcement or public communication
                  with respect to this Agreement or the transactions
                  contemplated hereby without the prior written consent of the
                  other Party hereto, which consent shall not unreasonably be
                  withheld; PROVIDED THAT, nothing herein shall prohibit any
                  Party from issuing or causing publication of any such press
                  release,

                                       12
<PAGE>

                  announcement or public communication to the extent that such
                  Party reasonably determines that such action is required by
                  law.

                           (c) CONFIDENTIAL NATURE OF INFORMATION. Each of TSI
                  and BROOKS shall treat in confidence all confidential
                  documents, materials and other information which it shall have
                  obtained regarding the other Party during the course of the
                  negotiations leading to the execution of this Agreement, in
                  its due diligence investigation, and in the preparation of
                  agreements and other documents relating to the consummation of
                  the transactions contemplated by this Agreement, as set forth
                  in the Confidentiality Agreement dated February 4, 2000,
                  between the Tetra Technologies, Inc. and Key Energy Services,
                  Inc., a copy of which is attached hereto as EXHIBIT "D".

                           (d) PARTY NAMES. Within ninety (90) days after the
                  Closing, (i) BROOKS shall undertake all steps necessary to
                  change the name of TETRA LLC to eliminate any reference to the
                  name of TETRA, and shall not permit TETRA LLC to use the TETRA
                  name or any trademarks, logos or other materials bearing the
                  TETRA name, trademarks or logos, and (ii) TSI shall undertake
                  all steps necessary to change the name of TSI to eliminate any
                  reference to the name of TSI or KEY, and shall not and shall
                  not permit BROOKS LLC to use the BROOKS or KEY name and any
                  trademarks, logos or other materials bearing the BROOKS or KEY
                  name, trademarks or logos.

                           (e) TAX MATTERS. BROOKS shall file or cause to be
                  filed all required tax returns relating to TETRA LLC and TSI
                  shall file or cause to be filed all required Tax Returns
                  relating to BROOKS LLC, in each case through the Closing Date.
                  Each of TSI and BROOKS shall promptly provide the other Party
                  with copies of any such filings.

                           (f) TAX TREATMENT. TSI and BROOKS agree to use all
                  reasonable efforts to effect "like kind exchange" treatment
                  for federal tax purposes pursuant to Section 1031 of the Code
                  with respect to the TETRA LLC Assets and BROOKS LLC Assets
                  transferred pursuant to the exchange of membership interests
                  contemplated herein.

                           (g) POST-CLOSING TAX COOPERATION AND ACCESS. From and
                  after the Closing, each Party shall make available to the
                  other Party, and to any Federal, state, municipal or local
                  government, governmental authority, regulatory or
                  administrative agency, governmental commission, department,
                  board, agency, governmental commission, department, board,
                  agency or instrumentality, court, tribunal, arbitrator or
                  arbitral body responsible for the imposition or collection of
                  any taxes ("TAXING AUTHORITY") as reasonably requested by such
                  other Party, all information, records or documents relating to
                  tax liabilities or potential tax liabilities of or relating to
                  the Frac Tank and Vacuum Business and the Production and

                                       13
<PAGE>

                  Pipe Testing Business, as the case may be, for all periods
                  prior to or including the Closing Date and shall preserve all
                  such information, records and documents until the expiration
                  of any applicable statute of limitations or extensions
                  thereof. Each Party shall prepare and provide to the other
                  Party any federal, state, local or foreign tax data and other
                  information, including such information required by the other
                  Party's customary tax and accounting questionnaires, requested
                  by the other Party for the other Party's use in preparing its
                  tax returns for any period prior to or including the Closing
                  Date. Such tax data and other information shall be prepared by
                  each Party and provided to the other Party within sixty (60)
                  days after any request for such data or other information.
                  Each Party shall bear its own expenses in complying with the
                  foregoing provisions.

                           (h) EMPLOYEES. Prior to Closing, (i) TSI will
                  terminate all of its employees employed in the Frac Tank and
                  Vacuum Business as set forth on Schedule 4.1(h)(i) and (ii)
                  BROOKS will terminate all of its employees employed in the
                  Production and Pipe Testing Business as set forth on Schedule
                  4.1(h)(ii). For purposes herein, all of the employees listed
                  on Schedules 4.1(h)(i) and (ii) shall be referred to herein as
                  "FORMER EMPLOYEES". After Closing, each of TSI and BROOKS
                  shall, in its sole and absolute discretion, be entitled to
                  offer employment to the other Party's Former Employees on such
                  terms as the offering Party deems desirable. Without
                  limitation, neither TSI nor BROOKS will be responsible for, or
                  have any liability with respect to, the other Party's (i)
                  benefits being provided or promised to be provided to the
                  Former Employees, or any other matters relating to such Former
                  Employees which arose prior to the Closing, (ii) employee
                  benefit plans, funds, or arrangements, including, without
                  limitation, "employee welfare benefit plans" as defined in
                  Section 3(1) of ERISA, and (iii) deferred compensation,
                  vacation, severance, stock option, employee stock purchase, or
                  similar plan, program or arrangement. After the Closing, both
                  TSI and BROOKS expressly reserve the right to refuse to offer
                  employment to any Former Employee for any reason which, in its
                  sole discretion, it deems appropriate; and, without
                  limitation, nothing in this Agreement shall be construed to
                  grant or establish any enforceable rights, legal or equitable,
                  in any Former Employee with respect to any person other than
                  his or her former employer on or after the Closing. If either
                  TSI or BROOKS offer employment to any Former Employee, such
                  employment will not create any obligation or commitment on the
                  part of the offering Party to honor any agreements,
                  commitments or representations of any kind made to such Former
                  Employee by their former employer herein. Without limiting the
                  generality of the forgoing, each former employer herein shall
                  retain all responsibility and liability for compliance with
                  the requirements of Code Section 4980B ("COBRA") through the
                  Closing Date, including, without limitation, the obligation to
                  provide continuation coverage for its Former Employees for the
                  period required by COBRA, and TSI and BROOKS each represent
                  that they have

                                       14
<PAGE>

                  no current intention to terminate their "group health plan"
                  as defined in Section 4980B(g)(2) of the Code, and will
                  indemnify the other for the excess of aggregate benefits paid
                  to Former Employees of the former employer from the other's
                  group health plan, over the aggregate premiums collected with
                  respect to such Former Employees under the other's group
                  health plan, by reason of being required to provide COBRA
                  coverage to those Former Employees of the former employer who
                  are not employed by the other following the Closing.

                           (i) INSURANCE MATTERS. TSI hereby acknowledges that
                  casualty insurance has been maintained with respect to the
                  TETRA LLC Assets and the Frac Tank and Vacuum Business through
                  and until the date of Closing. BROOKS hereby acknowledges that
                  casualty insurance has been maintained with respect to the
                  BROOKS LLC Assets and the Production and Pipe Testing Business
                  through and until the Closing. Each Party agrees that any and
                  all proceeds under any such insurance policies received as
                  compensation or indemnity for damages to any of the TETRA LLC
                  Assets or BROOKS LLC Assets (whether held at such time or not)
                  that occurred after November 15, 1999 shall be included as an
                  asset of such company and promptly paid over to TSI or BROOKS,
                  as the case may be, upon receipt. Each of TSI and BROOKS will
                  be responsible for obtaining their own insurance coverage of
                  their respective acquired assets from and after the Closing.

                           (j) TRANSITION PERIOD ACCESS. Each of TSI and BROOKS
                  shall for a period of sixty (60) days following the Closing
                  Date (the "TRANSITION PERIOD"), without further consideration,
                  permit the other Party to have reasonable access to their
                  respective facilities for the purpose of identifying, marking,
                  moving, removing or any other related activity in connection
                  with the exchange of the TETRA LLC ASSETS and BROOKS LLC
                  Assets contemplated herein.

                           (k) TRANSFER OF JOBS IN PROGRESS. Attached hereto as
                  SCHEDULE 4.1(k)-(i) is a list of all jobs utilizing TETRA LLC
                  Assets that are in progress as of the Closing Date (the "TETRA
                  JOBS"). Attached hereto as SCHEDULE 4.1(k)-(ii) is a list of
                  all jobs utilizing BROOKS LLC Assets that are in progress as
                  of the Closing Date (the "BROOKS JOBS"). All work performed by
                  TSI or its affiliates on the TETRA Jobs, or by BROOKS or its
                  affiliates on the BROOKS Jobs, prior to 12:01 a.m., Houston
                  time, on April 5, 2000 (the "EFFECTIVE TIME") shall be for the
                  account of TSI or BROOKS, as the case may be, and such Party
                  may invoice the applicable customer for such work in
                  accordance with its customary invoicing procedures. All work
                  performed on any jobs in progress after the Effective Time
                  shall be for the account of the Party, TSI or BROOKS, as the
                  case may be, that acquired the membership interests of the
                  limited liability company that is the owner of the TETRA LLC
                  Assets or the BROOKS LLC Assets involved in such work.

                                       15
<PAGE>

         FURTHER ASSURANCE. If, at any time after the Closing, either TSI or
BROOKS shall consider that any further assignments or assurances or any other
acts or things are necessary or desirable to vest, perfect or confirm, of record
or otherwise, in or to the membership interests in the BROOKS LLC or the TETRA
LLC, as the case may be, or title to the BROOKS LLC Assets or the TETRA LLC
Assets, as the case may be, the other Party shall execute and deliver all such
deeds, assignments and assurances, and do all such other things as may be
reasonably requested by the requesting Party or and as may be necessary and
proper to vest, perfect or confirm title to such membership interests or assets
in or to the requesting Party and otherwise to carry out the purposes of this
Agreement. Within sixty (60) days after the Closing Date, the Parties agree to
use their good faith efforts to jointly classify the BROOKS LLC Assets and TETRA
LLC Assets for the purpose of achieving, to the maximum extent possible, "like
kind" non-recognition treatment for such assets under Section 1031 of the Code.
TSI and BROOKS further agree to use their respective best efforts to cause the
transfer of all vehicle titles comprising a part of the TETRA LLC Assets and the
BROOKS LLC Assets, respectively, to be issued and original titles in the name of
such entity to be delivered to the other Party before May 1, 2000. TSI shall be
responsible for transferring all TETRA LLC titles, and BROOKS shall be
responsible for transferring all BROOKS LLC titles. Neither Party shall be
obligated to deliver completed titles to the other Party until such other Party
has confirmed in writing that it possesses all original titles, free and clear
of liens, showing TETRA LLC or BROOKS LLC, as the case may be, as the owner of
record of each subject vehicle.

         V.       NONCOMPETITION AND NONSOLICITATION

                  5.1 COVENANTS OF TSI. TSI, together with its parent and
         affiliates, agree that for a period of five (5) years following the
         Closing Date, it shall not directly or indirectly, through its parent
         or any affiliate, without the prior express written consent of BROOKS:

                           (a) engage in the business of providing frac tank
                  rental or vacuum truck services for the oil and gas industry
                  within the Territory (as defined below);

                           (b) knowingly call upon any person who is, at that
                  time, an employee of BROOKS or its parent entities or any
                  other BROOKS affiliate, in a managerial capacity for the
                  purpose or with the intent of enticing such employee away from
                  or out of the employ of BROOKS or its parent or any such
                  affiliate; or

                           (c) promote or assist, financially or otherwise
                  (including, without limitation, lending, guaranteeing loans or
                  otherwise providing financial assurance in any way), any
                  person, firm, partnership, corporation or other entity
                  whatsoever to do any of the above.

                                       16
<PAGE>

         Notwithstanding the above, the foregoing covenant shall not be deemed
to prohibit TSI or its parent or any TSI affiliate from, directly or indirectly,
(i) acquiring an interest in or any investment in any business or entity that
derives five percent (5%) or less of its gross revenues from the business of
frac tank rental or vacuum truck services within the Territory so long as the
portion or portions of the acquired or invested business or entity that derives
revenues from such business within the Territory is sold or otherwise divested
within eighteen (18) months after the date of such acquisition or investment,
(ii) engaging in the business of providing frac tank rental and vacuum truck
services outside of the Territory or (iii) utilizing vacuum trucks solely in
connection with plug and abandonment services performed by TSI or its
affiliates.

                  5.2 COVENANTS OF BROOKS. BROOKS, together with its parent and
         affiliates, agree that for a period of five (5) years following the
         Closing Date, it shall not directly or indirectly, through its parent
         or any BROOKS affiliate, without the prior express written consent of
         TSI:

                           (a) engage in the business of providing well
                  production testing, pipe testing, liquid mud and wireline
                  (slick line) services for the oil and gas industry within the
                  Territory, except that TSI acknowledges and agrees that BROOKS
                  is currently performing pipe testing services out of its
                  facility in Caldwell, Texas and can continue to perform such
                  pipe testing services outside the Territory after Closing;

                           (b) knowingly call upon any person who is, at that
                  time, an employee of TSI or its parent entities or any other
                  TSI affiliate, in a managerial capacity for the purpose or
                  with the intent of enticing such employee away from or out of
                  the employ of TSI or its parent or any such affiliate; or

                           (c) promote or assist, financially or otherwise
                  (including, without limitation, lending, guaranteeing loans or
                  otherwise providing financial assurance in any way), any
                  person, firm, partnership, corporation or other entity
                  whatsoever to do any of the above.

         Notwithstanding the above, the foregoing covenant shall not be deemed
to prohibit BROOKS or its parent or any BROOKS affiliate from, directly or
indirectly, (i) acquiring an interest in or any investment in any business or
entity that derives five percent (5%) or less of its gross revenues from the
business of well production testing, pipe, liquid mud and wireline (slick line)
services within the Territory so long as the portion or portions of the acquired
or invested business or entity that derives revenues from such business is sold
or otherwise divested within eighteen (18) months after the date of such
acquisition or investment, (ii) engaging in the business of providing well
production testing, pipe testing, liquid mud and wireline (slick line) services
outside the Territory or (iii) marketing, selling or reselling any liquid mud
products of TSI or any TSI affiliate in accordance with a distribution or
reseller agreement between such parties.

                                       17
<PAGE>

                  5.3 DEFINITION OF TERRITORY. For purposes of this Article V,
         the term "TERRITORY" shall mean the geographic area as more
         particularly described on SCHEDULE 5.3 attached hereto.

                  5.4 INJUNCTIVE RELIEF. Because of the difficulty of measuring
         economic losses to the beneficiaries of the foregoing covenants as a
         result of a breach, and because of the immediate and irreparable damage
         that would be caused to such beneficiaries for which they would have no
         other adequate remedy, each of TSI and BROOKS agree that in the event
         of breach by either Party of the applicable covenant, such covenant may
         be enforced by the non-breaching Party by, without limitation,
         injunctions and restraining orders.

                  5.5 REASONABLENESS OF COVENANTS. It is agreed by the Parties
         that the foregoing covenants in this Article V impose a reasonable
         restraint on the TSI and BROOKS, as the case may be, in light of the
         activities and business of the other Party on the date of the execution
         of this Agreement and future plans of the other Party.

                  5.6 SEVERABILITY OF COVENANTS. The covenants in this Article V
         are severable and separate, and the unenforceability of any specific
         covenant shall not affect the provisions of any other covenants.
         Moreover, in the event any court of competent jurisdiction shall
         determine that the scope, time or territorial restrictions set forth
         are unreasonable, then it is the intention of the parties that such
         restrictions be enforced to the fullest extent which the court deems
         reasonable, and the Agreement shall thereby be reformed.

                  5.7 INDEPENDENT COVENANTS. All of the covenants in this
         Article V shall be construed as an agreement independent of any other
         provision of this Agreement, and the existence of any claim or cause of
         action of the obligor under the foregoing covenants against the
         enforcing Party, whether predicated on this Agreement or otherwise,
         shall not constitute a defense to the enforcement by the enforcing
         Party of such covenants.

                  5.8 MATERIALITY. Each of TSI and BROOKS hereby agrees that the
         foregoing noncompetition covenants are a material and substantial part
         of this transaction.

         VI.      INDEMNITY

                  6.1 INDEMNIFICATION BY TSI. TSI hereby agrees to protect,
         defend, indemnify and hold harmless BROOKS and its parent and
         affiliates, together with their respective shareholders, officers,
         directors, employees, agents, legal representatives, successors and
         permitted assigns, from and against any demand, claim, action, cause of
         action, suit, proceeding, investigation, liability, forfeiture, fine,
         penalty, interest obligation, deficiency, obligation, judgment, loss,
         damage, cost or expense (including, without limitation, reasonable
         attorneys' fees)

                                       18
<PAGE>

         (hereinafter referred to as "LOSS" or "LOSSES") incurred or suffered
         by any of them and caused by or arising out of:

                                    (i) any breach or default in the performance
                  by TSI of any covenant or agreement of TSI contained in this
                  Agreement or in any agreement executed in conjunction herewith
                  or transaction contemplated hereby;

                                    (ii) any breach of warranty or
                  representation made by TSI herein, in any exhibit or schedule
                  hereto, or in any certificate or instrument delivered by TSI
                  or TETRA LLC to BROOKS pursuant hereto;

                                    (iii) the ownership of the membership
                  interests in TETRA LLC and its TETRA LLC Assets and the
                  operations of the Frac Tank and Vacuum Truck Business on or
                  prior to the Closing Date;

                                    (iv) the failure of TSI or its parent or any
                  TSI affiliate to pay any obligation to any creditor in
                  connection with the Frac Tank and Vacuum Business arising on
                  or prior to the Closing; or

                                    (v) the ownership and operation of BROOKS
                  LLC, its BROOKS LLC Assets and the Production and Pipe Testing
                  Business from and after the Closing Date.

                  6.2 INDEMNIFICATION BY BROOKS. BROOKS hereby agrees to
         protect, defend, indemnify and hold harmless TSI and its parent and
         affiliates, together with their respective shareholders, officers,
         directors, employees, agents, legal representatives, successors and
         permitted assigns, from and against any Loss incurred or suffered by
         any of them and caused by or arising out of:

                                    (i) any breach or default in the performance
                  by BROOKS of any covenant or agreement of BROOKS contained in
                  this Agreement or in any agreement executed in conjunction
                  herewith or transaction contemplated hereby;

                                    (ii) any breach of warranty or
                  representation made by BROOKS herein, in any exhibit or
                  schedule hereto, or in any certificate or instrument delivered
                  by BROOKS or BROOKS LLC to TSI pursuant hereto;

                                    (iii) the ownership of the membership
                  interests in BROOKS LLC and its BROOKS LLC Assets and the
                  operations of the Production and Pipe Testing Business on or
                  prior to the Closing Date;

                                    (iv) the failure of BROOKS or its parent or
                  any BROOKS affiliate to pay any obligation to any creditor in
                  connection with the Production and Pipe Testing Business
                  arising on or prior to the Closing; or

                                       19
<PAGE>

                                    (v) the ownership and operation of TETRA
                  LLC, its TETRA LLC Assets and the Frac Tank and Vacuum
                  Business from and after the Closing Date.

                  6.3 CONDITIONS OF INDEMNIFICATION. The obligations and
         liabilities of TSI or BROOKS, as the case may be (for purposes of this
         Section, the "INDEMNIFYING PARTIES"), to protect, defend, indemnify and
         hold harmless the other Party (the "INDEMNIFIED PARTY") under Section
         6.1 or 6.2 above with respect to claims asserted by third parties shall
         be subject to the following terms and conditions:

                                    (i) promptly after receipt of notice of
                  commencement of any action evidenced by service of process or
                  other legal pleading, or the assertion in writing of any claim
                  by a third party, the Indemnified Party shall give the
                  Indemnifying Party written notice thereof, together with a
                  copy of such claim, process, or other legal pleading, and the
                  Indemnifying Party shall have the right to undertake the
                  defense thereof by representatives of its choosing (subject to
                  the right of the Indemnified Party to reasonably consent
                  thereto) and at its expense; PROVIDED, HOWEVER, that the
                  Indemnified Party may participate in the defense with counsel
                  of its own choice and at its expense. The failure to give the
                  preceding notice shall not operate as a waiver of any
                  indemnification rights hereunder so long as the Indemnifying
                  Party is not prejudiced as a result thereof, and the
                  Indemnifying Party shall undertake the defense in accordance
                  with the foregoing as soon as it learns of the third party
                  claim even though it may learn of such claims through some
                  other means;

                                    (ii) in the event that the Indemnifying
                  Party, by the thirtieth (30th) day after receipt of notice (as
                  set forth above) of any such claim (or, if earlier, by the
                  tenth (10th) 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 claim), does not
                  elect to defend against such claim, the Indemnified Party
                  shall have the right, but not the obligation, to undertake the
                  defense, compromise or settlement of such claim on behalf of
                  and for the account and risk of the Indemnifying Party's
                  expense, subject to the right of the Indemnifying Party to
                  assume the defense of such claims at any time prior to
                  settlement, compromise or final determination thereof;

                                    (iii) anything in this section to the
                  contrary notwithstanding, the Indemnifying Party shall not
                  settle any claim without the prior written consent of the
                  Indemnified Party unless such settlement involves only the
                  payment of money and does not involve any admission of
                  liability or stipulation of fact which the Indemnified Party
                  believes in its sole discretion may have an adverse effect on
                  it and the claimant provides to the Indemnified Party a full
                  release from all liability in respect of such claim. If the
                  settlement of the claim involves more than the payment of

                                       20

<PAGE>

                  money or involves an admission of liability or stipulation of
                  fact, the Indemnifying Party shall not settle the claim
                  without the prior written consent of the Indemnified Party;
                  and

                                    (iv) the Indemnified Party and the
                  Indemnifying Party will each cooperate with all reasonable
                  requests of the other.

                  6.4 LIMITATION OF LIABILITY. Notwithstanding any other
         provision hereof, (a) the liability of any Indemnifying Party under
         this Agreement for any breach of any representation, warranty or
         covenant herein shall be limited to actual damages only and shall not
         include any alleged special, incidental, consequential, exemplary or
         indirect damages, (b) the Indemnifying Party shall not have any
         liability for any claim unless such claim exceeds $5,000 (the
         "THRESHOLD AMOUNT") and then not until the aggregate amount of claims
         exceeding the Threshold Amount exceeds $50,000 (the "BASKET AMOUNT")
         (at which point the Indemnified Party shall become liable for the
         entire amount of such Losses and not just the amount in excess of the
         Basket Amount); and (c) the aggregate liability of either Party under
         this Agreement shall not exceed $4.0 million.

                  6.5 SURVIVAL. All representations, warranties, covenants,
         agreements and obligations set forth in this Agreement, together with
         any exhibit, schedule or any other certificate, instrument or document
         furnished in connection with this Agreement or the transactions
         contemplated hereby shall survive the Closing. All such covenants,
         agreements and obligations of the Parties shall survive the Closing for
         the period therein specified or, if no period is specified, without
         limitation. All Section III representations and warranties of the
         Parties shall expire on the date two years from the Closing Date except
         that:

                           (a) the representations and warranties of TSI in
                  Sections 3.1(a)(c)(d)(g) [Assets; Title to Assets] and (o)
                  [Litigation, Judgments, etc.] and the representations and
                  warranties of BROOKS contained in Section 3.2(a)(c)(d)(g)
                  [Assets; Title to Assets] and (o) [Litigation Judgments, etc.]
                  shall survive without limitation; and

                           (b) the representations and warranties of TSI in
                  Sections 3.1(j)[Tax Matters], 3.1(l)[Employee Matters] and
                  3.1(n) [Environmental Compliance] and BROOKS in Sections
                  3.2(j) [Tax Matters], 3.2(l) [Employee Matters] and 3.2(n)
                  [Environmental Compliance] shall expire sixty (60) days after
                  the expiration of the applicable statute of limitations
                  relating to the underlying claim.

Any claim asserted in writing prior to the expiration as provided in this
Section 6.5 of the representation or warranty that is the basis for such
claim shall survive until finally resolved and satisfied in full. The rights
to indemnification, reimbursement or other remedy set forth in this Agreement
will not be affected by any investigation conducted by a Party with respect
to, or any knowledge acquired (or capable of being acquired) by a

                                       21

<PAGE>

Party about, the accuracy or inaccuracy or, or compliance with, any
representation, warranty, covenant or obligation.

         VII.     MISCELLANEOUS PROVISIONS.

                  7.1 EXPENSES. Each of the Parties shall be responsible for its
         own expenses and fees incurred in connection with the transaction
         contemplated herein.

                  7.2 NOTICE. Any notice, demand, request, instruction,
         correspondence or other document to be given hereunder by any Party to
         another (herein collectively called "NOTICE") shall be in writing and
         delivered (i) personally (ii) by courier, (iii) mailed by certified
         mail, postage prepaid and return receipt requested, or (iv) by
         telecopier, as follows:

                  To TSI:                    TETRA Services, Inc.
                                             25025 I-45 North
                                             The Woodlands, Texas 77380
                                             Attention: Paul D. Coombs
                                             Telecopier: (281) 364-4398

                  With a copy to:            Buenker, Nielsen & Kurisky, LLP
                                             10303 Northwest Freeway
                                             Suite 400
                                             Houston, Texas 77092
                                             Attention: Jared D. Nielsen, Esq.
                                             Telecopier: (713) 683-9940

                  To BROOKS:                 Brooks Well Servicing, Inc.
                                             C/o Key Energy Services, Inc.
                                             Floor
                                             East Brownwich, New Jersey 08816
                                             Attention: General Counsel
                                             Telecopier: (732) 247-5148

                  With a copy to:            Jenkens & Gilchrist, PC
                                             2200 One American Center
                                             600 Congress Avenue
                                             Austin, Texas 78701
                                             Attention: Bryan C. Campbell, Esq.
                                             Telecopier: (512) 404-3520

         Notice given by personal delivery or mail shall be effective upon
         actual receipt. Notice given by courier shall be effective one business
         day after delivery to the courier. Notice given by telecopier shall be
         effective upon actual receipt if received during the recipient's normal
         business hours, or at the beginning of the recipient's next business
         day after receipt if not received during the recipient's normal
         business hours. All Notices by telecopier shall be confirmed promptly

                                       22

<PAGE>

         after transmission in writing by certified mail or personal delivery.
         Any Party may change any address to which Notice is to be given to it
         by giving Notice as provided above of such change of address.

                  7.3 GOVERNING LAW. The provisions of this Agreement and the
         documents delivered pursuant hereto shall be governed by and construed
         in accordance with the laws of the State of Texas (excluding any
         conflicts-of-law rule or principle that might refer same to the laws of
         another jurisdiction).

                  7.4 ENTIRE AGREEMENT; AMENDMENTS AND WAIVERS. This Agreement,
         together with all exhibits and schedules attached hereto, constitutes
         the entire agreement by and among the Parties pertaining to the subject
         matter hereof and supersedes all prior agreements, understandings,
         negotiations and discussions, whether oral or written, of the Parties,
         and there are no warranties, representations or other agreements among
         the Parties in connection with the subject matter hereof except as set
         forth specifically herein or contemplated hereby. No supplement,
         modification or waiver of this Agreement shall be binding unless
         executed in writing by the Party to be bound thereby. No waiver of any
         of the provisions of this Agreement shall be deemed or shall constitute
         a waiver of any other provision hereof (regardless of whether similar),
         nor shall any such waiver constitute a continuing waiver unless
         otherwise expressly provided.

                  7.5 SEVERABILITY. In the event that any provision contained in
         this Agreement shall be determined to be invalid, illegal or
         unenforceable in any respect for any reason, the validity, legality and
         enforceability of any such provision in every other respect and the
         remaining provisions of this Agreement shall not, at the election of
         the Party for whose benefit the provision exists, be in any way
         impaired.

                  7.6 HEADINGS AND SCHEDULES. The headings of the several
         Sections herein are inserted for convenience of reference only and are
         not intended to be a part of or to affect the meaning or interpretation
         of this Agreement. The exhibits and schedules referred to herein are
         attached hereto and incorporated herein by this reference.

                  7.7 ASSIGNMENT; SUCCESSORS BOUND. This Agreement shall not be
         assigned by any Party without the prior written consent of the other
         Party, except that either Party may assign to a corporate affiliate its
         right to purchase the membership interests so long as such Party (or
         any successor) will not be relieved of any of its obligations
         hereunder. Subject to the foregoing, this Agreement shall be binding
         upon and inure to the benefit of the Parties and their respective
         successors and permitted assigns.

                  7.8 EXECUTION IN COUNTERPARTS. This Agreement may be executed
         in counterparts, each of which shall be deemed an original, but all of
         which shall constitute a full and complete Agreement. A photocopy or
         telecopy of an

                                       23

<PAGE>

         executed counterpart shall be sufficient to bind the Party or Parties
         whose signature appears thereon.

                  [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

                            [SIGNATURE PAGES FOLLOW]

                                       24

<PAGE>

         IN WITNESS WHEREOF, the Parties have caused this Agreement to be
signed in multiple originals by their respective officers thereunto duly
authorized, all as of the Closing Date.

                                      TSI:

                                      TETRA SERVICES, INC.

                                      By:   /s/ Paul D. Coombs
                                         ------------------------------------
                                         Paul D. Coombs, President

                                      BROOKS:

                                      BROOKS WELL SERVICING, INC.

                                      By:   /s/ Joseph B. Eustace
                                         ------------------------------------
                                         Joseph B. Eustace, President

                                EXHIBITS OMITTED

                                       1<PAGE>

                                 AMENDMENT NO. 2
                                       TO
                                    AGREEMENT

         This is Amendment No. 2, dated as of June 16, 2000, to the Agreement
made and entered into as of the 2nd day of August, 1999, as amended by
Amendment No. 1 dated as of December 1, 1999, by and between Francis D. John,
as Borrower, and Key Energy Services, Inc., as Lender, (the "Agreement").
Unless the context otherwise requires, defined terms used in this Amendment
No. 2 shall have the meaning ascribed to them as set forth in the Agreement.

                                   BACKGROUND

        A.     The Borrower and Lender have entered into the Agreement pursuant
               to which the Lender has agreed to forgive an aggregate of
               $5,000,000, together with accrued interest thereon, which has
               been borrowed by the Borrower from the Lender in accordance with
               the terms and conditions set forth therein.

        B.     After further deliberations and discussions by and among the
               members of the Board of Directors (the "Board") of the Lender, as
               well as discussions by members of the Board with the Borrower,
               the Borrower and Lender have determined that it would be in the
               best interests of the Lender and its shareholders to amend the
               terms of the Agreement.

        NOW, THEREFORE, intending to be legally bound, the Borrower and the
Lender hereby agree as follows:

         (I). AMENDMENT TO SECTION 1 OF THE AGREEMENT. Effective as of the
date hereof, Section 1 of the Agreement is hereby amended by deleting the
section in its entirety and replacing it with "[Reserved]".

         (II). FURTHER AMENDMENT TO SECTION 1 OF THE AGREEMENT. Effective as
of July 1, 2000, Section 1 of the Agreement shall be amended by deleting the
section in its entirety and substituting therefor a new Section 1 as set
forth below:

        "1.    FORGIVENESS/CANCELLATION OF INDEBTEDNESS. Except (a) in the event
               of an acceleration in Borrower's obligation to repay the
               outstanding Indebtedness and make payment on any of the
               outstanding Notes as a result of (i) the termination of the
               Borrower's employment by the Lender for "Cause" (as defined and
               described below) or (ii) the voluntary termination by the

<PAGE>

               borrower of his employment with the Lender for any reason or (b)
               in the event of an acceleration in the Lender's obligation to
               forgive/cancel the Indebtedness and cancel the Notes as a result
               of (i) the Borrower's termination of his employment with the
               Lender as a result of "Good Reason", "Change in Control" or
               "Disability" (as defined and described below) or (ii) the death
               of the Borrower, the Lender hereby agrees that, for so long as
               the Borrower remains employed by the Lender, the Indebtedness
               will be forgiven/canceled in the proportions and amounts and on
               the dates set forth below:

<TABLE>
<CAPTION>

                                                   PROPORTION/AMOUNT OF
                                                   INDEBTEDNESS TO BE
               DATE                                FORGIVEN/CANCELED
               ----                                -----------------
               <S>                                 <C>
               June 30, 2001                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2002                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2003                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2004                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2005                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2006                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2007                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

                                        2
<PAGE>

                                                   PROPORTION/AMOUNT OF
                                                   INDEBTEDNESS TO BE
               DATE                                FORGIVEN/CANCELED
               ----                                -----------------
               <S>                                 <C>
               June 30, 2008                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2009                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)

               June 30, 2010                       1/10th (10%)
                                                   ($500,000.00, plus accrued
                                                   but unpaid interest thereon)
</TABLE>

         The Indebtedness will be forgiven/canceled by Lender chronologically
in the order in which it was incurred by the Borrower."

         (III). AGREEMENT IN FULL FORCE AND EFFECT. Except as otherwise
modified or amended by the provisions of this Amendment No. 2 as set forth
above, the terms and provisions of the Agreement shall remain in full force
and effect.

                            [SIGNATURE PAGE FOLLOWS]

                                        3

<PAGE>

               IN WITNESS WHEREOF, the parties have executed this Agreement
as of the day and year first above written.

                                          KEY ENERGY SERVICES, INC.
                                          Lender

                                          By: /s/ MORTON WOLKOWITZ
                                             -------------------------
                                                MORTON WOLKOWITZ,
                                                  Director

                                          Borrower:

                                          /s/ FRANCIS D. JOHN
                                          -----------------------------
                                          FRANCIS D. JOHN

                                        4

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