Document:

Exhibit 10.1

 

CONTRIBUTION,
CONVEYANCE AND ASSUMPTION

AGREEMENT

 

By and
Among

 

CYPRESS
ENERGY HOLDINGS, LLC

 

CYPRESS
ENERGY HOLDINGS II, LLC

 

CYPRESS
ENERGY PARTNERS, LLC

 

CYPRESS
ENERGY PARTNERS, L.P.

 

CYPRESS
ENERGY PARTNERS GP, LLC

 

CYPRESS
ENERGY PARTNERS – SBG, LLC

 

CYPRESS
ENERGY PARTNERS – TIR, LLC

 

TULSA
INSPECTION RESOURCES, LLC

 

MR.
CHARLES C. STEPHENSON, JR.

 

MS.
CYNTHIA FIELD

 

MR.
G. LES AUSTIN

 

AND

 

MR.
RICHARD CARSON

 

Dated
as of January   , 2014

 

    	 

    	 

    

 

CONTRIBUTION,
CONVEYANCE AND ASSUMPTION AGREEMENT

 

This
Contribution, Conveyance and Assumption Agreement, dated as of January , 2014 (this “Agreement”), is by and
among Cypress Energy Holdings, LLC, a Delaware limited liability company (“Holdings”), Cypress Energy Holdings
II, LLC, a Delaware limited liability company (“Holdings II”), Cypress Energy Partners, LLC, a Delaware limited
liability company (the “OLLC”), Cypress Energy Partners, L.P., a Delaware limited partnership (the “Partnership”),
Cypress Energy Partners GP, LLC, a Delaware limited liability company (the “General Partner”), Cypress Energy
Partners – SBG, LLC, a Delaware limited liability company (“CEP SBG”), Cypress Energy Partners –
TIR, LLC, a Delaware limited liability company (“CEP-TIR”), Tulsa Inspection Resources, LLC, a Delaware limited
liability company (“TIR”), Mr. Charles C. Stephenson, Jr., Ms. Cynthia Field, Mr. G. Les Austin and Mr. Richard
Carson. The above-named entities and individuals are sometimes referred to in this Agreement each as a “Party”
and collectively as the “Parties.” Capitalized terms used herein shall have the meanings assigned to such terms
in Article I.

 

RECITALS

 

WHEREAS,
the General Partner and Holdings II have formed the Partnership, pursuant to the Delaware Revised Uniform Limited Partnership Act
(the “Delaware LP Act”), for the purpose of engaging in any business activity that is approved by the General
Partner and that lawfully may be conducted by a limited partnership organized pursuant to the Delaware LP Act.

 

WHEREAS,
in order to accomplish the objectives and purposes in the preceding recital, each of the following actions has been taken prior
to the date hereof:

 

		1.	Holdings II formed the General Partner under the terms of the Delaware Limited Liability Company
Act (the “Delaware LLC Act”), and contributed to the General Partner $1,000 in exchange for all of the limited
liability company interests in the General Partner and the rights to the Incentive Distribution Rights in the Partnership.

 

		2.	The General Partner and Holdings II formed the Partnership under the terms of the Delaware LP Act
and contributed $0 and $1,000 to the Partnership, respectively, in exchange for a 0% non-economic general partner interest and
a 100% limited partner interest, respectively, in the Partnership.

 

		3.	SBG Disposal, LLC, a North Dakota limited liability company (“SBG Disposal”), contributed its working capital
and fixed assets, a 25% ownership interest in Alati Arnegard, LLC, a North Dakota limited liability company, and management contracts
related to various saltwater disposal facilities to Cypress Energy Services, LLC, a Delaware limited liability company, in exchange
for a 49% member interest in Cypress Energy Services, LLC and $500,000.

 

		4.	Effective         , 2013, all of the employees of SBG Disposal were transferred to and became employees of Cypress Energy Management
– Bakken Operations, LLC, a Delaware limited liability company.

 

    	 

    	 

    

 

		5.	Holdings borrowed $           million under the
                                                              Holdings Credit Facility.

 

		6.	Holdings contributed $           million to
                                                              Cypress Energy Investments, LLC, a Delaware limited liability company.

 

		7.	Cypress Energy Investments, LLC contributed $            million to
                                                              CEP-TIR.

 

		8.	CEP-TIR formed TIR under the terms of the Delaware LLC Act and contributed to TIR $1,000 in exchange
for all of the limited liability company interests in TIR.

 

		9.	CEP-TIR formed Tulsa Inspection Resources Holdings, LLC (“TIR Holdings”) under
the terms of the Delaware LLC Act and contributed to TIR Holdings $1,000 in exchange for all of the limited liability company interests
in TIR Holdings.

 

		10.	Tulsa Inspection Resources – Canada, Inc., a corporation organized under the Canada Business
Corporations Act, continued as a corporation (“TIR-Canada Inc.”) under the Alberta Business Corporations Act
(the “ABC Act”).

 

		11.	TIR-Canada Inc. converted to an Alberta unlimited liability corporation named Tulsa Inspection
Resources – Canada ULC (“TIR-Canada”).

 

		12.	Tulsa Inspection Resources – Nondestructive Examination, Inc. converted into a Delaware limited
liability company named Tulsa Inspection Resources – Nondestructive Examination, LLC (“TIR-NDE”).

 

		13.	Tulsa Inspection Resources, Inc., an Oklahoma corporation (“TIR Inc.”),
                                                               merged with and into TIR with TIR surviving and with (i) certain minority shareholders receiving cash totaling $
                                                                          in exchange for
                                                                          % of the shares of TIR Inc., (ii) CEP-TIR
                                                               receiving limited liability company interests representing a 70.43% interest in TIR in exchange for
                                                                          % of the shares of TIR
                                                               Inc., (iii) Cynthia Field receiving limited liability company interests representing a 8.10% interest in TIR in exchange for
                                                                          % of the shares of TIR Inc. and (iv) Charles C. Stephenson, Jr.
                                                               receiving limited liability company interests representing a
                                                               21.47% interest in TIR in exchange for            % of the shares of TIR
                                                               Inc.

 

		14.	TIR distributed (i) limited liability company interests representing a 70.43% interest in TIR-NDE
and 70.43% of the shares in each of TIR-Canada and Tulsa Inspection Resources – Acquisition Corp. (“TIR-Acquisition”),
a corporation under the ABC Act to CEP-TIR, (ii) limited liability company interests representing a 8.10% interest in TIR-NDE and
8.10% of the shares in each of TIR-Canada and TIR-Acquisition to Cynthia Field and (iii) limited liability company interests representing
a 21.47% interest in TIR-NDE and 21.47% of the shares in each of TIR-Canada and TIR-Acquisition to Charles C. Stephenson, Jr.

 

		15.	CEP-TIR conveyed its shares in TIR-Canada and TIR-Acquisition to TIR Holdings in exchange for
                                                               limited                                                                liability company interests representing a 70.43%
                                                               interest in TIR Holdings.

 

    	 

    	 

    

 

		16.	Cynthia Field conveyed her shares in TIR-Canada and TIR-Acquisition to TIR Holdings in
                                                               exchange for limited liability company interests representing a 8.10% interest in TIR Holdings.

 

		17.	Charles C. Stephenson, Jr. conveyed his shares in TIR-Canada and TIR-Acquisition to TIR
                                                               Holdings in exchange for limited liability company interests representing a 21.47% interest in TIR Holdings.

 

		18.	TIR-Acquisition converted to an Alberta unlimited liability corporation named Tulsa Inspection
Resources – Acquisition ULC.

 

		19.	Foley Inspection Services Inc. converted to an Alberta unlimited liability corporation named Foley
Inspection Services ULC (“Foley”).

 

		20.	G. Les Austin conveyed his Class C Interests in the OLLC to Holdings in exchange for limited liability
company interests in Holdings equal to the current value of his Class C Interests in the OLLC.

 

		21.	Richard Carson conveyed his Class C Interests in the OLLC to Holdings in exchange for limited liability
company interests in Holdings equal to the current value of his Class C Interests in the OLLC.

 

		22.	The Partnership, TIR, CEP-TIR and the OLLC entered into (i) a new $65.0 million working capital
facility to finance the carrying of accounts receivable, to pay fees and expenses to the agents and the lenders party thereto,
to refinance all or a portion of the existing TIR credit facilities and for other corporate purposes (the “Working Capital
Facility”) and (ii) a new $55.0 million acquisition facility to refinance all or a portion of the existing TIR credit
facilities and for making permitted acquisitions and capital expenditures (the “Acquisition Facility”).

 

		23.	TIR borrowed $            million under
                                                               the                                                                Working Capital Facility and $
                                                                          under the Acquisition Facility and repaid all amounts owed to
                                                               TIR Capital Partners, LLC, a                                                                Delaware limited liability
                                                               company.

 

		24.	Foley amalgamated with TIR-Acquisition with the surviving entity named [Foley Inspection Services
ULC].

 

		25.	Cypress Energy Management, LLC, a Delaware limited liability company (“CEM”),
formed Cypress Energy Management – TIR, LLC (“CEM TIR”), under the Delaware LLC Act and contributed to
CEM TIR $1,000 in exchange for all of the limited liability company interests in CEM TIR.

 

		26.	TIR formed Tulsa Inspection Resources - PUC, LLC (“TIR PUC”), under the Delaware
LLC Act and contributed to TIR PUC $1,000 in exchange for all of the limited liability company interests in TIR PUC. TIR PUC subsequently
filed an election with the Internal Revenue Service (“IRS”) on Form 8832 electing, effective on the date of
formation of TIR PUC, to be treated as an association taxable as a corporation for U.S. federal income tax purposes.

 

    	 

    	 

    

 

WHEREAS,
concurrently with the consummation of the transactions contemplated hereby, each of the following transactions will occur at the
times specified herein:

 

		1.	CEP SBG will distribute its 100% limited liability company interest in SBG Sheridan Facility LLC,
a Montana limited liability company, and Cypress Energy Partners – Prairie Lakes SWD, LLC (“Prairie Lakes LLC”),
a North Dakota limited liability company (together, the “SBG Distribution Interest”), to the OLLC.

 

		2.	The OLLC will distribute its 100% limited liability company interest in (i) SBG Sheridan Facility
LLC, (ii) Prairie Lakes LLC, (iii) Cypress Equipment, LLC, a Delaware limited liability company, and (iv) Cypress Energy Solutions,
LLC, a Delaware limited liability company (together, the “OLLC Distribution Interest”), to Holdings II.

 

		3.	Holdings II will distribute its 100% limited liability company interest in (i) SBG Sheridan Facility
LLC, (ii) Prairie Lakes LLC, (iii) Cypress Equipment, LLC, and (iv) Cypress Energy Solutions, LLC (together, the “Holdings
II Distribution Interest”), to Holdings.

 

		4.	The Partnership will issue 100% of the Incentive Distribution Rights in the Partnership to the
General Partner.

 

		5.	Holdings II will convey 100% of its Class A Interest in the OLLC to the Partnership, as a
                                                              capital contribution, in exchange for (i)       Common Units representing a
                                                                    % limited partner                                                               interest in
                                                              the Partnership, (ii)      Sub Units representing a      % limited partner interest in the Partnership, and (iii)      the right
                                                              to receive $      million in proceeds of the initial public offering, all of which will reimburse Holdings II for certain capital
                                                              expenditures incurred with respect to the contributed assets.

 

		6.	CEP-TIR will convey a 35.28% interest in each of TIR, TIR-NDE and TIR Holdings (together, the
                                                              “CEP-TIR Contribution Interest”) to the Partnership, as a capital contribution, in exchange for (i)
                                                                   Common Units representing a % limited partner interest in the Partnership and (ii)
                                                                    Sub Units representing a % limited partner interest in the Partnership.

 

		7.	Cynthia Field will convey a 4.06% interest in each of TIR, TIR-NDE and TIR Holdings (together,
the “CF Contribution Interest”) to the Partnership, as a capital contribution, in exchange for (i)      Common Units
representing a      % limited partner interest in the Partnership and (ii)      Sub Units representing a      % limited partner interest in the
Partnership.

 

		8.	Charles C. Stephenson, Jr. will convey a 10.76% interest in each of TIR, TIR-NDE and TIR Holdings
(together, the “CS Contribution Interest”) to the Partnership, as a capital contribution, in exchange for (i)
     Common Units representing a      % limited partner interest in the Partnership and (ii)      Sub Units representing a % limited partner interest
in the Partnership.

 

    	 

    	 

    

 

		9.	The public, through the Underwriters, will contribute $      in cash to the Partnership, as a capital
contribution, in exchange for Common Units representing a      % limited partner interest in the Partnership.

 

		10.	The Partnership will (i) pay the Structuring Fee, (ii) pay the Underwriters’ discount of
$      , and (iii) distribute $      million to Holdings II (the “Holdings II Equity Distribution”) in satisfaction of
its right to a reimbursement of certain capital expenditures incurred with respect to the contributed assets.

 

		11.	The Partnership will pay transaction expenses related to the offering, estimated to be of $      million,
out of operating cash flow existing on its balance sheet.

 

		12.	The Partnership will convey its 50.1% limited liability company interests in each of TIR, TIR-NDE
and TIR Holdings (together, the “Partnership TIR Contribution Interest”) to the OLLC as a capital contribution.

 

		13.	The Partnership will redeem the initial limited partner interests of Holdings II and will refund
Holding II’s initial contribution of $1,000, as well as any interest or other profit that may have resulted from the investment
or other use of such initial capital contribution to Holdings II, in proportion to such initial contribution.

 

		14.	Holdings will convey its 100% limited liability company interest in CEM to Holdings II as a capital
contribution.

 

		15.	Holdings II will convey its 100% limited liability company interest in CEM to the General Partner
as a capital contribution.

 

		16.	Holdings II will distribute Sub Units representing a      % limited partner interest in the Partnership
to Holdings that will be sufficient for Holdings to redeem all of G. Les Austin’s and Richard Carson’s limited liability
company interests in Holdings.

 

		17.	Holdings will distribute the Sub Units representing limited partner interest in the Partnership
received from Holdings II to G. Les Austin in complete redemption of his interest in Holdings.

 

		18.	Holdings will distribute the Sub Units representing limited partner interest in the Partnership
received from Holdings II to Richard Carson in complete redemption of his interest in Holdings.

 

WHEREAS,
if the Over-Allotment Option (as defined herein) is exercised, each of the matters provided for in Article III will occur in accordance
with its respective terms; and

 

WHEREAS,
the members, partners or stockholders of the Parties have taken all partnership, limited liability company or corporate action,
as the case may be, required to approve the transactions contemplated by this Agreement.

 

    	 

    	 

    

 

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

 

ARTICLE
I

DEFINITIONS

 

The
terms set forth below in this Article I shall have the meanings ascribed to them below or in the part of this Agreement
referred to below:

 

“ABC
Act” has the meaning assigned to such term in the recitals.

 

“Agreement”
has the meaning assigned to such term in the preamble.

 

“Acquisition
Facility” has the meaning assigned to such term in the recitals.

 

“CEM”
has the meaning assigned to such term in the recitals.

 

“CEM
Agreement” has the meaning set forth in Section 2.14.

 

“CEM
TIR” has the meaning assigned to such term in the recitals.

 

“CEP
SBG” has the meaning assigned to such term in the preamble.

 

“CEP-TIR”
has the meaning assigned to such term in the preamble.

 

“CEP-TIR
Contribution Interest” has the meaning assigned to such term in the recitals.

 

“CES
LLC Agreement” has the meaning set forth in Section 2.2.

 

“CF
Contribution Interest” has the meaning assigned to such term in the recitals.

 

“CS
Contribution Interest” has the meaning assigned to such term in the recitals.

 

“Class
A Interest” has the meaning assigned to such term in the OLLC Agreement.

 

“Class
C Interest” has the meaning assigned to such term in the OLLC Agreement.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common
Units” has the meaning assigned to such term in the Partnership Agreement.

 

“CS
Contribution Interest” has the meaning assigned to such term in the recitals.

 

“Cypress
Equipment Agreement” has the meaning set forth in Section 2.2.

 

“Delaware
LLC Act” has the meaning assigned to such term in the recitals.

 

“Delaware
LP Act” has the meaning assigned to such term in the recitals.

 

    	 

    	 

    

 

“Effective
Time” means immediately prior to the closing of the initial public offering pursuant to the Underwriting Agreement.

 

“Foley”
has the meaning assigned to such term in the recitals.

 

“General
Partner” has the meaning assigned to such term in the preamble.

 

“Holdings”
has the meaning assigned to such term in the preamble.

 

“Holdings
II” has the meaning assigned to such term in the preamble.

 

“Holdings
Credit Facility” means the $35 million credit facility with JPMorgan Bank entered into by Cypress Energy Holdings, LLC
on November 6, 2012.

 

“Holdings
II Distribution Interest” has the meaning assigned to such term in the recitals.

 

“Holdings
II Equity Distribution” has the meaning assigned to such term in the recitals.

 

“Incentive
Distribution Rights” has the meaning assigned to such term in the Partnership Agreement.

 

“IRS”
has the meaning assigned to such term in the recitals.

 

“OLLC”
has the meaning assigned to such term in the preamble.

 

“OLLC
Agreement” has the meaning set forth in Section 2.5.

 

“OLLC
Distribution Interest” has the meaning assigned to such term in the recitals.

 

“Over-Allotment
Option” has the meaning assigned to such term in the Underwriting Agreement.

 

“Partnership”
has the meaning assigned to such term in the preamble.

 

“Partnership
Agreement” means the First Amended and Restated Agreement of Limited Partnership of Cypress Energy Partners, L.P. dated
as of .

 

“Partnership
TIR Contribution Interest” has the meaning assigned to such term in the recitals.

 

“Party”
and “Parties” has the meaning assigned to such term in the preamble.

 

“Prairie
Lakes Agreement” has the meaning set forth in Section 2.1.

 

“Prairie
Lakes LLC” has the meaning assigned to such term in the recitals.

 

“Registration
Statement” means the Registration Statement on Form S-1 filed with the Commission (Registration No. 333-192328), as amended
and effective at the Effective Time.

 

    	 

    	 

    

 

“SBG
Disposal” has the meaning assigned to such term in the recitals.

 

“SBG
Distribution Interest” has the meaning assigned to such term in the recitals.

 

“SBG
Sheridan Agreement” has the meaning set forth in Section 2.1.

 

“Structuring
Fee” means a fee for certain advisory services equal to $ pursuant to the Underwriting Agreement payable to Raymond James
& Associates, Inc., Robert W. Baird & Co. Incorporated and Stifel, Nicolaus & Company, Incorporated.

 

“Sub
Units” has the meaning assigned to “Subordinated Units” in the Partnership Agreement.

 

“TIR”
has the meaning assigned to such term in the preamble.

 

“TIR-Acquisition”
has the meaning assigned to such term in the recitals.

 

“TIR
Agreement” has the meaning set forth in Section 2.6.

 

“TIR-Canada”
has the meaning assigned to such term in the recitals.

 

“TIR-Canada
Inc.” has the meaning assigned to such term in the recitals.

 

“TIR
Holdings” has the meaning assigned to such term in the recitals.

 

“TIR
Holdings Agreement” has the meaning set forth in Section 2.6.

 

“TIR
Inc.” has the meaning assigned to such term in the recitals.

 

“TIR-NDE”
has the meaning assigned to such term in the recitals.

 

“TIR-NDE
Agreement” has the meaning set forth in Section 2.6.

 

“TIR
PUC” has the meaning assigned to such term in the recitals.

 

“Underwriters”
means those underwriters listed on Schedule A to the Underwriting Agreement.

 

“Underwriting
Agreement” means that certain Underwriting Agreement by and among Raymond James & Associates, Inc., Robert W. Baird
& Co. Incorporated, Stifel, Nicolaus & Company, Incorporated and BMO Capital Markets Corp., as representatives of the Underwriters,
the General Partner, the Partnership, CEP-TIR and OLLC, dated as of January , 2014.

 

“Working
Capital Facility” has the meaning assigned to such term in the recitals.

 

    	 

    	 

    

 

ARTICLE
II

CONTRIBUTION, ACKNOWLEDGEMENTS AND DISTRIBUTIONS

 

Unless
otherwise indicated, the following shall be completed either at the Effective Time or immediately following the Effective Time
in the order set forth herein:

 

Section
2.1Distribution by CEP SBG of the SBG Distribution Interest to the OLLC. CEP SBG hereby distributes, assigns, transfers,
sets over and delivers to the OLLC, its successors and its assigns, for its and their own use forever, all right, title and interest
in and to its (i) 100% limited liability company interest in SBG Sheridan Facility LLC and (ii) 100% limited liability company
interest in Prairie Lakes LLC. The OLLC hereby accepts the SBG Distribution Interest. Notwithstanding anything in the Amended and
Restated Operating Agreement of SBG Sheridan Facility LLC, dated as of January 1, 2013 (the “SBG Sheridan Agreement”),
or the Amended and Restated Member Control Agreement of Prairie Lakes LLC, dated as of January 1, 2013 (the “Prairie Lakes
Agreement”), to the contrary, pursuant to this distribution (i) the OLLC is hereby admitted as the sole member of both
SBG Sheridan Facility LLC and Prairie Lakes LLC and agrees that it is bound by the SBG Sheridan Agreement and the Prairie Lakes
Agreement, (ii) CEP SBG hereby ceases to be the sole member of both SBG Sheridan Facility LLC and Prairie Lakes LLC immediately
following the OLLC’s admission as described in (i), and (iii) SBG Sheridan Facility LLC and Prairie Lakes LLC hereby continue
without dissolution with the OLLC as the sole member of each.

 

Section
2.2Distribution by the OLLC of the OLLC Distribution Interest to Holdings II. The OLLC hereby distributes, assigns, transfers,
sets over and delivers to Holdings II, its successors and its assigns, for its and their own use forever, all right, title and
interest in and to its (i) 100% limited liability company interest in SBG Sheridan Facility LLC, (ii) 100% limited liability company
interest in Prairie Lakes LLC, (iii) 100% limited liability company interest in Cypress Equipment, LLC, and (iv) 100% limited liability
company interest in Cypress Energy Solutions, LLC. Holdings II hereby accepts the OLLC Distribution Interest. Notwithstanding anything
in the SBG Sheridan Agreement, the Prairie Lakes Agreement, the Limited Liability Company Agreement of Cypress Equipment, LLC dated
as of March 15, 2013 (the “Cypress Equipment Agreement”), or the Limited Liability Company Agreement
of Cypress Energy Solutions, LLC, dated as of March 15, 2012 (the “CES LLC Agreement”), to the contrary, as
applicable, pursuant to this distribution (i) Holdings II is hereby admitted as a member of each of SBG Sheridan Facility LLC,
Prairie Lakes LLC, Cypress Equipment, LLC and Cypress Energy Solutions, LLC and agrees that it is bound by the SBG Sheridan Agreement,
the Prairie Lakes Agreement, the Cypress Equipment Agreement and the CES LLC Agreement, (ii) the OLLC hereby ceases to be a member
of each of SBG Sheridan Facility LLC, Prairie Lakes LLC, Cypress Equipment, LLC and Cypress Energy Solutions, LLC immediately following
Holdings II’s admission to each as described in (i), and (iii) SBG Sheridan Facility LLC, Prairie Lakes LLC, Cypress Equipment,
LLC and Cypress Energy Solutions, LLC all hereby continue without dissolution with Holdings II as the sole member of each.

 

    	 

    	 

    

 

Section
2.3Distribution by Holdings II of the Holdings II Distribution Interest to Holdings. Holdings II hereby distributes, assigns,
transfers, sets over and delivers to Holdings, its successors and its assigns, for its and their own use forever, all right, title
and interest in and to its (i) 100% limited liability company interest in SBG Sheridan Facility LLC, (ii) 100% limited liability
company interest in Prairie Lakes LLC, (iii) 100% limited liability company interest in Cypress Equipment, LLC, and (iv) 100% limited
liability company interest in Cypress Energy Solutions, LLC. Holdings hereby accepts the Holdings II Distribution Interest. Notwithstanding
anything in the SBG Sheridan Agreement, the Prairie Lakes Agreement, the Cypress Equipment Agreement or the CES LLC Agreement to
the contrary, as applicable, pursuant to this distribution (i) Holdings is hereby admitted as a member of each of SBG Sheridan
Facility LLC, Prairie Lakes LLC, Cypress Equipment, LLC and Cypress Energy Solutions, LLC and agrees that it is bound by the SBG
Sheridan Agreement, the Prairie Lakes Agreement, the Cypress Equipment Agreement and the CES LLC Agreement, (ii) Holdings II hereby
ceases to be a member of each of SBG Sheridan Facility LLC, Prairie Lakes LLC, Cypress Equipment, LLC and Cypress Energy Solutions,
LLC immediately following Holdings’ admission to each as described in (i), and (iii) SBG Sheridan Facility LLC, Prairie Lakes
LLC, Cypress Equipment, LLC and Cypress Energy Solutions, LLC all hereby continue without dissolution with Holdings as the sole
member of each. 

 

Section
2.4Issuance of Incentive Distribution Rights to the General Partner. The Partnership agrees to issue 100% of its Incentive
Distribution Rights to the General Partner.

 

Section
2.5Contribution by Holdings II of 100% of its Class A Interest in the OLLC to the Partnership. Holdings II hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors and its assigns,
for its and their own use forever, all right, title and interest in and to its 100% Class A Interest in the OLLC, as a capital
contribution, in exchange for (i) Common Units representing a % interest in the Partnership, (ii) Sub Units representing a % interest
in the Partnership, and (iii) the right to receive $ million in proceeds of the initial public offering, all of which is to reimburse
it for certain capital expenditures incurred with respect to the contributed assets. The Partnership hereby accepts the % limited
liability company interest in the OLLC. Notwithstanding anything in the Second Amended and Restated Limited Liability Company Operating
Agreement of the OLLC, dated as of , 2013 (the “OLLC Agreement”), to the contrary, pursuant to this contribution
(i) the Partnership is hereby admitted as a member of the OLLC and agrees that it is bound by the OLLC Agreement, (ii) Holdings
II hereby ceases to be a member of the OLLC immediately following the Partnership’s admission as described in (i), and (iii)
the OLLC hereby continues without dissolution with the Partnership as a member.

 

Section
2.6Contribution by CEP-TIR of the CEP-TIR Contribution Interest to the Partnership. CEP-TIR hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors and its assigns, for its and their
own use forever, all right, title and interest in and to a (i) 35.28% limited liability company interest in TIR, (ii) 35.28% limited
liability company interest in TIR-NDE, and (iii) 35.28% limited liability company interest in TIR Holdings, as a capital contribution,
in exchange for (i) Common Units representing a % interest in the Partnership, and (ii) Sub Units representing a % interest in
the Partnership. The Partnership hereby accepts the CEP-TIR Contribution Interest. Notwithstanding anything in the TIR Agreement,
the Limited Liability Company Agreement of TIR-NDE, dated as of December 9, 2013 (the “TIR-NDE Agreement”),
or the Limited Liability Company Agreement of TIR Holdings, dated December 3, 2013 (the “TIR Holdings Agreement”),
to the contrary, as applicable, pursuant to this contribution, (i) the Partnership is hereby admitted as a member of each of TIR,
TIR-NDE and TIR Holdings and agrees that it is bound by the TIR Agreement, the TIR-NDE Agreement and the TIR Holdings Agreement,
and (ii) TIR, TIR-NDE and TIR Holdings hereby all continue without dissolution with the Partnership as a member.

 

    	 

    	 

    

 

Section
2.7Contribution by Cynthia Field of the CF Contribution Interest to the Partnership. Cynthia Field hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors and its assigns, for its and their
own use forever, all right, title and interest in and to a (i) 4.06% limited liability company interest in TIR, (ii) 4.06% limited
liability company interest in TIR-NDE, and (iii) 4.06% limited liability company interest in TIR Holdings, as a capital contribution,
in exchange for (i) Common Units representing a % interest in the Partnership, and (ii) Sub Units representing a % interest in
the Partnership. The Partnership hereby accepts the CF Contribution Interest. Notwithstanding anything in the TIR Agreement, the
TIR-NDE Agreement or the TIR Holdings Agreement to the contrary, as applicable, pursuant to this contribution, (i) the Partnership
is hereby admitted as a member of each of TIR, TIR-NDE and TIR Holdings and agrees that it is bound by the TIR Agreement, the TIR-NDE
Agreement and the TIR Holdings Agreement, and (ii) TIR, TIR-NDE and TIR Holdings hereby all continue without dissolution with the
Partnership as a member.

 

Section
2.8Contribution by Charles C. Stephenson, Jr. of the CS Contribution Interest to the Partnership. Charles C. Stephenson,
Jr. hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors
and its assigns, for its and their own use forever, all right, title and interest in and to a (i) 10.76% limited liability company
interest in TIR, (ii) 10.76% limited liability company interest in TIR-NDE, and (iii) 10.76% limited liability company interest
in TIR Holdings, as a capital contribution, in exchange for (i) Common Units representing a % interest in the Partnership, and
(ii) Sub Units representing a % interest in the Partnership. The Partnership hereby accepts the CS Contribution Interest. Notwithstanding
anything in the TIR Agreement, the TIR-NDE Agreement or TIR Holdings Agreement to the contrary, as applicable, pursuant to this
contribution, (i) the Partnership is hereby admitted as a member of each of TIR, TIR-NDE and TIR Holdings and agrees that it is
bound by the TIR Agreement, the TIR-NDE Agreement and the TIR Holdings Agreement, and (ii) TIR, TIR-NDE and TIR Holdings hereby
all continue without dissolution with the Partnership as a member.

 

Section
2.9Public Cash Contribution. The Parties acknowledge that, in connection with the initial public offering, public investors,
through the Underwriters, have made a capital contribution to the Partnership of approximately $ million in cash ($ million net
to the Partnership after deducting the underwriting discounts and commissions of $ million and the Structuring Fee) in exchange
for the issuance by the Partnership of Common Units, representing a % limited partner interest in the Partnership.

 

Section
2.10Payment of Transaction Costs. The Parties acknowledge the payment by the Partnership of transaction expenses in the
amount of approximately $ million from operating cash flow on the Partnership’s balance sheet.

 

    	 

    	 

    

 

Section
2.11Contribution by the Partnership of the Partnership TIR Contribution Interest to the OLLC. The Partnership hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to the OLLC, its successors and its assigns, for its
and their own use forever, all right, title and interest in and to the Partnership’s (i) 50.1% limited liability company
interest in TIR, (ii) 50.1% limited liability company interest in TIR-NDE, and (iii) 50.1% limited liability company interest in
TIR Holdings. The OLLC hereby accepts the Partnership TIR Contribution Interest, as a capital contribution. Notwithstanding anything
in the TIR Agreement, the TIR-NDE Agreement or the TIR Holdings Agreement to the contrary, as applicable, pursuant to this contribution,
(i) the OLLC is hereby admitted as a member of each of TIR, TIR-NDE and TIR Holdings and agrees that it is bound by the TIR Agreement,
the TIR-NDE Agreement and the TIR Holdings Agreement, (ii) the Partnership ceases to be a member of each of TIR, TIR-NDE and TIR
Holdings immediately following the OLLC’s admission to each as described in (i), and (iii) TIR, TIR-NDE and TIR Holdings
hereby all continue without dissolution with the OLLC as a member.

 

Section
2.12Distribution of Equity Distribution. The Partnership hereby distributes the Holdings II Equity Distribution to Holdings
II in satisfaction of its right to a reimbursement of capital expenditures incurred with respect to the contributed assets.

 

Section
2.13Redemption of Holdings II Initial Limited Partner Interests. For and in consideration of the redemption by the Partnership
of $1,000 to Holdings II as a refund of its initial capital contributions to the Partnership, along with 100% of any interest or
profit that resulted from the investment or other use of such capital contribution, the Partnership hereby redeems all of the initial
limited partner interests of Holdings II.

 

Section
2.14Contribution by Holdings of its 100% limited liability company interest in CEM to Holdings II. Holdings hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to Holdings II, its successors and its assigns, for
its and their own use forever, all right, title and interest in and to Holdings’ 100% limited liability company interest
in CEM. Holdings II hereby accepts the 100% limited liability company interest in CEM, as a capital contribution. Notwithstanding
anything in the Limited Liability Company Agreement of CEM, dated as of August 15, 2012 (the “CEM Agreement”),
to the contrary, as applicable, pursuant to this contribution, (i) Holdings II is hereby admitted as sole member of CEM and agrees
that it is bound by the CEM Agreement, as sole member of CEM, (ii) Holdings ceases to be a member of CEM immediately following
Holdings II’s admission to each as described in (i), and (iii) CEM hereby continues without dissolution with Holdings II
as the sole member.

 

Section
2.15 Contribution by Holdings II of its 100% limited liability company interest in CEM to the General Partner. Holdings
II hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the General Partner, its successors
and its assigns, for its and their own use forever, all right, title and interest in and to Holding II’s 100% limited liability
company interest in CEM. The General Partner hereby accepts the 100% limited liability company interest in CEM, as a capital contribution.
Notwithstanding anything in the CEM Agreement to the contrary, as applicable, pursuant to this contribution, (i) the General Partner
is hereby admitted as sole member of CEM and agrees that it is bound by the CEM Agreement, as sole member of CEM, (ii) Holdings
II ceases to be a member of CEM immediately following the General Partner’s admission to each as described in (i), and (iii)
CEM hereby continues without dissolution with the General Partner as the sole member.

 

    	 

    	 

    

 

Section
2.16Distribution by Holdings II of Sub Units in the Partnership to Holdings. Holdings II hereby distributes, assigns, transfers,
sets over and delivers to Holdings, its successors and its assigns, for its and their own use forever, all right, title and interest
in and to Sub Units representing a % interest in the Partnership, all of which will be used to completely redeem the limited liability
company interests in Holdings held by G. Les Austin and Richard Carson. Holdings hereby accepts the % limited liability company
interest in the Partnership. Notwithstanding anything in the Partnership Agreement to the contrary, pursuant to this distribution,
(i) Holdings II is hereby admitted as a member of the Partnership and agrees that it is bound by the Partnership Agreement, and
(ii) the Partnership hereby continues without dissolution with Holdings as a member.

 

Section
2.17Redemption of G. Les Austin Limited Liability Company Interest in Holdings. Holdings hereby distributes, assigns, transfers,
sets over and delivers to G. Les Austin, his successors and his assigns, for his and their own use forever, all right, title and
interest in and to Sub Units representing a % interest in the Partnership, in complete redemption of the limited liability company
interests in Holdings held by G. Les Austin. G. Les Austin hereby accepts the % limited liability company interest in the Partnership.
Notwithstanding anything in the Partnership Agreement to the contrary, pursuant to this distribution, (i) G. Les Austin is hereby
admitted as a member of the Partnership and agrees that he is bound by the Partnership Agreement, (ii) Holdings hereby ceases to
be a member of the Partnership, and (iii) the Partnership hereby continues without dissolution with G. Les Austin as a member.

 

Section
2.18Redemption of Richard Carson Limited Liability Company Interest in Holdings. Holdings hereby distributes, assigns,
transfers, sets over and delivers to Richard Carson, his successors and his assigns, for his and their own use forever, all right,
title and interest in and to Sub Units representing a % interest in the Partnership, in complete redemption of the limited liability
company interests in Holdings held by Richard Carson. Richard Carson hereby accepts the % limited liability company interest in
the Partnership. Notwithstanding anything in the Partnership Agreement to the contrary, pursuant to this distribution, (i) Richard
Carson is hereby admitted as a member of the Partnership and agrees that he is bound by the Partnership Agreement, (ii) Holdings
hereby ceases to be a member of the Partnership, and (iii) the Partnership hereby continues without dissolution with Richard Carson
as a member.

 

Section
2.19Form 8832 Election by TIR PUC. TIR PUC hereby agrees to file with the IRS an election on Form 8832 electing to be treated
as an association taxable as a corporation for U.S. federal income tax purposes to be effective prior to the Effective Time.

 

ARTICLE
III

ADDITIONAL TRANSACTIONS

 

If
the Over-Allotment Option is exercised in whole or in part, the Underwriters will contribute additional cash to the Partnership
in exchange for up to an additional Common Units on the basis of the initial public offering price per Common Unit set forth in
the Registration Statement less the amount of underwriting discounts and the Structuring Fee, and the Partnership shall use all
of the net proceeds from that exercise to make a cash distribution to Holdings. Upon the expiration of the period during which
the Underwriters may exercise the Over-Allotment option, the Partnership will issue on a deferred basis to Holdings II as part
of the contribution transactions described in Section 2.5 the number of Common Units equal to the excess, if any, of (x) the maximum number of Common Units available for sale under the Over-Allotment Option over (y) the aggregate number of Common
Units, if any, actually purchased by and issued to the Underwriters pursuant to any exercise of the Over-Allotment option.

 

    	 

    	 

    

 

ARTICLE
IV

FURTHER ASSURANCES

 

From
time to time after the Effective Time, and without any further consideration, the Parties agree to execute, acknowledge and deliver
all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents,
and to do all such other acts and things, all in accordance with applicable law, as may be necessary or appropriate (i) more fully
to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges
granted by this Agreement, or which are intended to be so granted, (ii) more fully and effectively to vest in the applicable Parties
and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement
or intended to be so and (iii) more fully and effectively to carry out the purposes and intent of this Agreement.

 

ARTICLE
V

EFFECTIVE TIME

 

Notwithstanding
anything contained in this Agreement to the contrary, none of the provisions of Article II of this Agreement shall be operative
or have any effect until the Effective Time, at which time all the provisions of Article II of this Agreement shall be effective
and operative in accordance with Article VI, without further action by any Party hereto.

 

ARTICLE
VI

MISCELLANEOUS

 

Section
6.1Order of Completion of Transactions. The transactions provided for in Article II and Article III of this
Agreement shall be completed immediately following the Effective Time in the following order: first, the transactions provided
for in Article II shall be completed in the order set forth therein; and second, following the completion of the transactions
provided for in Article II, the transactions provided for in Article III, if they occur, shall be completed.

 

Section
6.2Headings; References; Interpretation. All Article and Section headings in this Agreement are for convenience only and
shall not be deemed to control or affect the meaning or construction of any of the provisions hereof. The words “hereof,”
“herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this
Agreement as a whole, including, without limitation, all Schedules and Exhibits attached hereto, and not to any particular provision
of this Agreement. All references herein to Articles, Sections, Schedules and Exhibits shall, unless the context requires a different
construction, be deemed to be references to the Articles and Sections of this Agreement and the Schedules and Exhibits attached
hereto, and all such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof for all purposes.
All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender shall include all other
genders, and the singular shall include the plural and vice versa. The use herein of the word “including” following
any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters
set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without
limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall
be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general
statement, term or matter.

 

    	 

    	 

    

 

Section
6.3Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and assigns.

 

Section
6.4No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are not
intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and
no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement.

 

Section
6.5Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory
Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

 

Section
6.6Choice of Law. This Agreement shall be subject to and governed by the laws of the state of Delaware. Each Party hereby
submits to the jurisdiction of the state and federal courts in the state of [Delaware] and to venue in the state and federal courts
in [ County, Delaware].

 

Section
6.7Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene,
or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or
invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the particular
provisions or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give
effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement.

 

Section
6.8Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement
of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this
Agreement.

 

Section
6.9Integration. This Agreement and the instruments referenced herein supersede all previous understandings or agreements
among the Parties, whether oral or written, with respect to the subject matter of this Agreement and such instruments. This Agreement
and such instruments contain the entire understanding of the Parties with respect to the subject matter hereof and thereof. There
are no unwritten oral agreements between the parties. No understanding, representation, promise or agreement, whether oral or written,
is intended to be or shall be included in or form part of this Agreement unless it is contained in a written amendment hereto executed
by the parties hereto after the date of this Agreement.

 

    	 

    	 

    

 

Section
6.10Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable law, this Agreement shall also constitute
a “deed,” “bill of sale” or “assignment” of the assets and interests referenced herein.

 

[Signature
Pages Follow]

 

 

    	 

    	 

    

 

 

IN WITNESS WHEREOF,
the parties to this Agreement have caused it to be duly executed as of the date first above written.

 

 

	 	CYPRESS ENERGY HOLDINGS, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	CYPRESS ENERGY HOLDINGS II, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	CYPRESS ENERGY PARTNERS, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	CYPRESS ENERGY PARTNERS GP, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	CYPRESS ENERGY PARTNERS, L.P.
	 	 
	 	By:	CYPRESS ENERGY PARTNERS GP, LLC
	 	 	its general partner

 

	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	CYPRESS ENERGY PARTNERS – SBG, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Signature
Pages to Contribution, Conveyance and Assumption Agreement

 

    	 

    	 

    

 

	 	CYPRESS ENERGY PARTNERS – TIR, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	TULSA INSPECTION RESOURCES, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	MR. CHARLES C. STEPHENSON, JR.
	 	 
	 	By:	 
	 	 
	 	MS. CYNTHIA FIELD
	 	 
	 	By:	 
	 	 
	 	MR. G. LES AUSTIN
	 	 
	 	By:	 
	 	 
	 	MR. RICHARD CARSON
	 	 
	 	By:	 

 

Signature
Pages to Contribution, Conveyance and Assumption AgreementExhibit 10.3

 

 

 

OMNIBUS
AGREEMENT

 

among

 

CYPRESS
ENERGY HOLDINGS, LLC,

 

CYPRESS
ENERGY MANAGEMENT, LLC,

 

CYPRESS
ENERGY PARTNERS, LLC

 

CYPRESS
ENERGY PARTNERS, L.P.,

 

CYPRESS
ENERGY PARTNERS GP, LLC

 

CYPRESS
ENERGY PARTNERS – TIR, LLC

 

FOLEY
INSPECTION SERVICES ULC

 

TULSA
INSPECTION RESOURCES, LLC

 

TULSA
INSPECTION RESOURCES – CANADA ULC

 

TULSA
INSPECTION RESOURCES HOLDINGS, LLC

 

TULSA
INSPECTION RESOURCES – NONDESTRUCTIVE EXAMINATION, LLC

 

MR. CHARLES
C. STEPHENSON, JR.

 

AND

 

MS. CYNTHIA
FIELD

 

[  ̃ ],
[  ̃ ]

 

 

 

    	 

    	 

    

 

OMNIBUS
AGREEMENT

 

This
OMNIBUS AGREEMENT is entered into on, and effective as of, the Closing Date (as defined herein) among Cypress Energy Holdings,
LLC, a Delaware limited liability company (“Cypress Holdings”), Cypress Energy Management, LLC, a Delaware limited
liability company (“CEM”), Cypress Energy Partners, LLC, a Delaware limited liability company (the “OLLC”),
Cypress Energy Partners, L.P., a Delaware limited partnership (the “Partnership”), Cypress Energy Partners GP,
LLC, a Delaware limited liability company (the “General Partner”), Cypress Energy Partners – TIR, LLC,
a Delaware limited liability company (“CEP TIR”), Foley Inspection Services ULC, an Alberta, Canada unlimited
liability corporation (“Foley”), Tulsa Inspection Resources, a Delaware limited liability company (“TIR”),
Tulsa Inspection Resources – Canada ULC, an Alberta, Canada unlimited liability corporation (“TIR Canada”),
Tulsa Inspection Resources Holdings, LLC, a Delaware limited liability company (“TIR Holdings”). Tulsa Inspection
Resources –Nondestructive Examination, LLC, a Delaware limited liability company (“NDE”), Mr. Charles
C. Stephenson, Jr. and Ms. Cynthia Field. The above-named entities are sometimes referred to in this Agreement (as defined herein)
each as a “Party” and collectively as the “Parties.”

 

RECITALS:

 

1.          The
Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article II,
with respect to certain indemnification obligations of the Parties to each other.

 

2.          The
Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article III,
with respect to the amount to be paid (a) by the Partnership for the centralized overhead services to be performed by the General
Partner and its Affiliates (as defined herein) for and on behalf of the Partnership Group (as defined herein) and (b) by TIR and
the TIR Entities (as defined herein) for certain interest payment and other reimbursements.

 

3.          The
Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article IV,
with respect to the Partnership Group’s right of first offer with respect to the ROFO Assets (as defined herein).

 

4.          The
Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article V,
with respect to the granting of certain licenses between the Parties.

 

In
consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

ARTICLE
I

Definitions

 

1.1           Definitions.
As used in this Agreement, the following terms shall have the respective meanings set forth below:

 

    	1

    	 

    

 

“Administrative
Fee” is defined in Section 3.2(a).

 

“Affiliate”
is defined in the Partnership Agreement.

 

“Agreement”
means this Omnibus Agreement, as it may be amended, modified or supplemented from time to time in accordance with the terms hereof.

 

“Assets”
means all disposal wells and related facilities and equipment, inspection equipment, storage tanks, offices and related equipment,
real estate and other assets, or portions thereof, conveyed, contributed or otherwise transferred or intended to be conveyed, contributed
or otherwise transferred pursuant to the Contribution Agreement to any member of the Partnership Group, or owned by, leased by
or necessary for the operation of the business, properties or assets of any member of the Partnership Group, prior to or as of
the Closing Date.

 

“CEI”
is defined in Section 3.4.

 

“CEM”
is defined in the introduction to this Agreement.

 

“CEP
TIR” is defined in the introduction to this Agreement.

 

“Closing
Date” means January [  ̃ ], 2014, the date of the closing
of the initial public offering of Common Units representing limited partner interests in the Partnership.

 

“Common
Unit” is defined in the Partnership Agreement.

 

“Conflicts
Committee” is defined in the Partnership Agreement.

 

“Contribution
Agreement” means that certain Contribution, Conveyance and Assumption Agreement, dated as of the date hereof, among the
General Partner, the Partnership, Cypress Holdings, Cypress Energy Holdings II, LLC, a Delaware limited liability company, OLLC,
Cypress Energy Partners – SBG, LLC, a Delaware limited liability company, CEP TIR, TIR, Mr. Charles C. Stephenson, Jr., Ms.
Cynthia Field, Mr. G. Les Austin and Mr. Richard Carson.

 

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

 

“Covered
Environmental Losses” is defined in Section 2.1(a).

 

“Credit
Agreement” means the $120 million secured credit agreement, dated December [  ̃ ],
2013, by and among the Partnership, the OLLC, CEP TIR, TIR, Deutsche Bank AG, New York Branch, the other lenders party thereto
and BMO Harris Bank N.A.

 

“Cypress
Entities” means Cypress Holdings and any Person controlled, directly or indirectly, by Cypress Holdings other than the
General Partner or a member of the Partnership Group; and “Cypress Entity” means any of the Cypress Entities in their
individual capacity.

 

    	2

    	 

    

 

“Cypress
Holdings” is defined in the introduction to this Agreement.

 

“Environmental
Deductible” is defined in Section 2.1(a)(ii).

 

“Environmental
Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, judgments, ordinances, codes, injunctions,
decrees, Environmental Permits and other legally enforceable requirements and rules of common law now or hereafter in effect, relating
to (a) pollution or protection of human health, natural resources, wildlife and the environment including, without limitation,
the federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund Amendments Reauthorization Act,
the Resource Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances Control
Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, and other environmental conservation
and protection laws and the regulations promulgated pursuant thereto, and any state or local counterparts, each as amended from
time to time, and (b) the generation, manufacture, processing, distribution, use, treatment, storage, transport, or handling of
any Hazardous Substances.

 

“Environmental
Permit” means any permit, approval, identification number, license, registration, certification, consent, exemption,
variance or other authorization required under or issued pursuant to any applicable Environmental Law, including applications for
renewal of such permits in which the application allows for continued operation under the terms of an expired permit.

 

“Foley”
is defined in the introduction to this Agreement.

 

“General
Partner” is defined in the introduction to this Agreement.

 

“Governmental
Authority” means the United States, any foreign country, state, county, city or other incorporated or unincorporated
political subdivision, agency or instrumentality thereof.

 

“Governmental
Requirement” means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction,
franchise, permit, certificate, license, authorization or other directive or requirement, whether now or hereinafter in effect,
including environmental laws, energy regulations and occupational, safety and health standards or controls, of any Governmental
Authority.

 

“Hazardous
Substance” means (a) any substance, whether solid, liquid, gaseous, semi-solid or any combination thereof, that is designated,
defined or classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous substance,
or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including, without limitation, any hazardous
substance as defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, and including
asbestos and lead-containing paints or coatings, radioactive materials, and polychlorinated biphenyls, and (b) petroleum, oil,
gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel, and other refined petroleum hydrocarbons, solely
to the extent regulated under applicable Environmental Laws.

 

    	3

    	 

    

 

“Indemnified
Party” means the Partnership Group or the Cypress Entities, as the case may be, in its capacity as the party entitled
to indemnification in accordance with Article II.

 

“Indemnifying
Party” means either the Partnership Group or Cypress Holdings, as the case may be, in its capacity as the party from
whom indemnification may be sought in accordance with Article II.

 

“License”
is defined in Section 5.1.

 

“Limited
Partner” is defined in the Partnership Agreement.

 

“Loan
Origination Fee” means the $2.05 million loan origination fee paid in connection with the [Fee Letter], dated December
[  ̃ ], 2013 between Deutsche Bank AG, New York Branch and the Partnership.

 

“Losses”
means any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and
expenses (including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and every
kind or character, known or unknown, fixed or contingent.

 

“Marks”
is defined in Section 5.1.

 

“Mediation
Notice” is defined in Section 6.3.

 

“NDE”
is defined in the introduction to this Agreement.

 

“OLLC”
is defined in the introduction to this Agreement.

 

“Partnership”
is defined in the introduction to this Agreement.

 

“Partnership
Agreement” means the First Amended and Restated Agreement of Limited Partnership of Cypress Energy Partners, L.P., dated
as of , 2014, as such agreement is in effect on the Closing Date, to which reference is hereby made for all purposes of this Agreement.

 

“Partnership
Change of Control” means Cypress Holdings ceases to directly or indirectly control the general partner of the Partnership.

 

“Partnership
Group” means the Partnership and any of its Subsidiaries, treated as a single consolidated entity.

 

“Partnership
Group Member” means any member of the Partnership Group.

 

“Partnership
Indebtedness Interest” means interest expense relating to amounts borrowed under the Credit Agreement.

 

“Partnership
Securities” means any equity or debt instrument of the Partnership.

 

“Party”
and “Parties” are defined in the introduction to this Agreement.

 

    	4

    	 

    

 

“Person”
means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization,
association, government agency or political subdivision thereof or other entity.

 

“Producer
Price Index” means the Producer Price Index for Finished Goods, as provided by the U.S. Department of Labor, Bureau of
Labor Statistics.

 

“Proposed
Transaction” is defined in Section 4.2(a).

 

“Registration
Statement” means the Registration Statement on Form S-1 filed by the Partnership with the United States Securities and
Exchange Commission (Registration No. 333-192328), as amended.

 

“Retained
Assets” means all disposal wells and related facilities and equipment, inspection equipment, storage tanks, offices and
related equipment, real estate and other assets, or portions thereof, owned by any of the Cypress Entities that were not directly
or indirectly conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the Contribution Agreement or
the other documents referred to in the Contribution Agreement.

 

“ROFO
Assets” means the assets listed on Schedule IV to this Agreement.

 

“ROFO
Notice” is defined in Section 4.2(a).

 

“ROFO
Period” is defined in Section 4.1(a).

 

“ROFO
Response” is defined in Section 4.2(a).

 

“ROFO
Response Deadline” is defined in Section 4.2(a).

 

“Subsidiary”
is defined in the Partnership Agreement.

 

“TIR”
is defined in the introduction to this Agreement.

 

“TIR
Canada” is defined in the introduction to this Agreement.

 

“TIR
Entities Non-Controlling Interest Holders” means CEP TIR, Mr. Charles C. Stephenson, Jr., Ms. Cynthia Field and any transferee
or other successors in interest thereto, so long as such person owns, directly or indirectly, an ownership interest in any TIR
Entity.

 

“TIR
Entities Manager” means the OLLC.

 

“TIR
Entity” means collectively TIR, NDE, TIR Canada and Foley, and any successor-in-interest thereto.

 

“TIR
Majority Interest Holder” means the OLLC.

 

“TIR
Non-Controlling Interest Holders” means CEP TIR, Mr. Charles C. Stephenson, Jr., Ms. Cynthia Field and any transferee
or other successors in interest thereto, so long as such person owns, directly or indirectly, an ownership interest in TIR.

 

    	5

    	 

    

 

“TIR
Parent” means Tulsa Inspection Resources, Inc., an Oklahoma corporation.

 

“TIR
Reorganization” means the purchase of shares of common stock of TIR Parent by CEP TIR and through a series of acquisitions,
the merger of TIR Parent with and into TIR, the distribution by TIR of its interest in NDE, TIR Canada and Tulsa Inspection Resources-Acquisition
Corp., which directly owns Foley, to its members, and all other transactions, disputes, claims and expenses related thereto.

 

“TIR
Restructuring Indebtedness” means the $10 million of incremental borrowings that would have been required to purchase
certain non-controlling interest holders’ interests in TIR, as if such indebtedness had been incurred under the Credit Agreement.

 

“Transfer”
means to, directly or indirectly, sell, assign, lease, convey, transfer or otherwise dispose of, whether in one or a series of
transactions.

 

ARTICLE
II

Indemnification

 

2.1         Environmental
Indemnification.

 

(a)          Subject
to Section 2.4, Cypress Holdings shall indemnify, defend and hold harmless the Partnership Group from and against any of
the following Losses suffered or incurred by the Partnership Group, directly or indirectly, or as a result of any claim by a third
party, by reason of or arising out of the operation or ownership of the Assets prior to the Closing Date:

 

(i)          any
violation or correction of violation of Environmental Laws occurring or arising, in whole or in part, prior to the Closing Date;

 

(ii)         any
currently existing environmental event, action, omission, condition or matter or currently pending legal action against the Partnership
Group, a true and correct summary of which is described on Schedule I attached hereto; and

 

(iii)        any
event, condition, action, omission or matter that has an adverse impact on the environment and is associated with or arising, in
whole or in part, from the ownership or operation of the Assets prior to the Closing Date (including, without limitation, the presence
of Hazardous Substances on, under, about or migrating to or from the Assets or the disposal or release of Hazardous Substances
generated by operation of the Assets at non-Asset locations) including, without limitation, (A) the cost and expense of any required
investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation or other corrective action
under Environmental Laws, (B) the cost and expense of the preparation and implementation of any closure, remedial, corrective action,
or other plans required or necessary under Environmental Laws, and (C) the cost and expense of any environmental or toxic tort
pre-trial, trial, or appellate legal or litigation support work; provided, however, Cypress Holdings shall
not be obligated to indemnify, defend and hold harmless the Partnership Group for a Loss under this Section 2.1(a)(iii)
until such time as the aggregate amount of all Losses under this Section 2.1(a)(iii) exceeds $350,000 (the “Environmental
Deductible”), at which time Cypress Holdings shall be obligated to indemnify the Partnership Group for the total amount
of such Losses in excess of the Environmental Deductible;

 

    	6

    	 

    

 

provided,
however, that with respect to any event, condition or matter under Sections 2.1(a)(iii), Cypress Holdings will be obligated
to indemnify the Partnership Group only to the extent that Cypress Holdings is notified in writing of such violation, event, condition
or environmental matter on or before the third anniversary of the Closing Date (clauses (i) through (iii) collectively,
“Covered Environmental Losses”).

 

(b)          The
Partnership Group, jointly and severally, shall indemnify, defend and hold harmless the Cypress Entities from and against any Losses
suffered or incurred by the Cypress Entities, directly or indirectly, or as a result of any claim by a third party, by reason of
or arising out of:

 

(i)          any
violation or correction of violation of Environmental Laws associated with or arising, in whole or in part, from the ownership
or operation of the Assets occurring on or after the Closing Date; and

 

(ii)         any
event, condition or matter associated with or arising, in whole or in part, from the ownership or operation of the Assets on or
after the Closing Date (including, but not limited to, the presence of Hazardous Substances on, under, about or migrating to or
from the Assets or the disposal or release of Hazardous Substances generated by operation of the Assets at non-Asset locations)
that requires investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation or other
corrective action under Environmental Laws, including, without limitation, (A) the cost and expense of any such activity, (B) the
cost or expense of the preparation and implementation of any closure, remedial, corrective action, or other plans required or necessary
under Environmental Laws, and (C) the cost and expense for any environmental or toxic tort pre-trial, trial, or appellate legal
or litigation support work, to the extent that any of the foregoing matters under (i) and (ii) are not Covered Environmental
Losses for which the Partnership Group is entitled to indemnification from Cypress Holdings under this Article II without
giving effect to the Environmental Deductible.

 

2.2         Additional
Indemnification.

 

(a)          In
addition to and not in limitation of the indemnification provided under Sections 2.1(a), Cypress Holdings shall indemnify,
defend, and hold harmless the Partnership Group from and against any Losses suffered or incurred by the Partnership Group and relating
to or arising out of:

 

(i)
(A) the consummation of the transactions contemplated by the Contribution Agreement or (B) events, actions, omissions and conditions
associated with the ownership or operation of the Assets and occurring prior to the Closing Date (other than Covered Environmental
Losses, which are provided for under Section 2.1); provided, however, that such obligation to indemnify will terminate
five (5) years after the Closing Date;

 

    	7

    	 

    

 

(ii) any
litigation matters attributable to the ownership or operation of the Assets prior to the Closing Date, including the currently
pending legal actions against Cypress Holdings set forth on Schedule II attached hereto; provided, however that no
indemnification claims may be made against Cypress Holdings for legal matters not identified on Schedule II or otherwise
known to Cypress Holdings at the time of the Closing unless the aggregate dollar amount of such Losses suffered or incurred by
the Partnership Group exceeds $250,000, after such time Cypress Holdings shall be liable for the full amount of such Losses in
excess of $250,000;

 

(iii)
any claims associated with or arising from the Retained Assets following the closing, regardless of whether the events or conditions
underlying such claims occurred prior to or following the Closing Date;

 

(iv)
all federal, state and local income tax liabilities attributable to the ownership or operation of the Assets prior to the Closing
Date, including under Treasury Regulation Section 1.1502-6 (or any similar provision of state or local law), and any such income
tax liabilities of Cypress Holdings that may result from the consummation of the formation transactions for the Partnership Group
and the General Partner occurring on or prior to the Closing Date; provided, however, that such obligation to indemnify
will terminate 60 days after the expiration of any applicable statute of limitations;

 

(v)
the failure of any Partnership Group Member to have on the Closing Date any title, right of way, consent, license, permit or approval
necessary to allow such Partnership Group Member to own or operate the Assets in substantially the same manner that the contributed
assets were owned or operated immediately prior to the Closing Date and as described in the Registration Statement; provided,
however, that such obligation to indemnify will terminate on the fifth anniversary of the Closing Date; provided,
further, no claims may be made against Cypress Holdings for indemnification pursuant this Section 2.2(a)(v) unless
the aggregate dollar amount of the Losses suffered or incurred under this Section 2.2(a)(v) by the Partnership Group exceeds
$500,000, after such time Cypress Holdings shall be liable for the full amount of such Losses in excess of $500,000; and

 

(vi)
any losses suffered or incurred by the Partnership Group and related to, associated with or arising, in whole or part, from
the TIR Reorganization.

 

(b)          In
addition to and not in limitation of the indemnification provided under Section 2.1(b) or the Partnership Agreement, the
Partnership Group, jointly and severally, shall indemnify, defend, and hold harmless the Cypress Entities from and against any
Losses suffered or incurred by the Cypress Entities by reason of or arising out of events, actions, omissions and conditions associated
with the ownership or operation of the Assets and occurring after the Closing Date (other than Covered Environmental Losses which
are provided for under Section 2.1), unless such indemnification would not be permitted under the Partnership Agreement
by reason of one of the provisos contained in Section 7.7(a) of the Partnership Agreement.

 

    	8

    	 

    

 

2.3         Indemnification
Procedures.

 

(a)          The
Indemnified Party agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification
under this Article II, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and
specific basis for such claim.

 

(b)          The
Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims
brought against the Indemnified Party that are covered by the indemnification under this Article II, including, without
limitation, the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such
claim or any matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without
the consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed) unless it includes
a full release of the Indemnified Party from such claim or any matter or any issues relating thereto, as the case may be.

 

(c)          The
Indemnified Party agrees to cooperate in good faith with the Indemnifying Party, with respect to all aspects of the defense of
and pursuit of any counterclaims with respect to any claims covered by the indemnification under this Article II, including,
without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that
the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense
and counterclaims, the making available to the Indemnifying Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party considers relevant to such defense and counterclaims, the making available to the Indemnifying
Party of any employees of the Indemnified Party and the granting to the Indemnifying Party of reasonable access rights to the properties
and facilities of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to
use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain
the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section
2.3. In no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the
immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in
connection with the defense of any claims or pursuit of any counterclaims covered by the indemnification set forth in this Article
II; provided, however, that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel
in connection with any such defense and counterclaims. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified
Party reasonably informed as to the status of any such defense or counterclaim, but the Indemnifying Party shall have the right
to retain sole control over such defense and counterclaim so long as the Indemnified Party is still seeking indemnification hereunder.

 

(d)          In
determining the amount of any loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under
this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified
Party, and such correlative insurance benefit shall be net of any incremental insurance premium that becomes due and payable by
the Indemnified Party as a result of such claim and (ii) all amounts recovered by the Indemnified Party under contractual indemnities
from third Persons.

 

    	9

    	 

    

 

2.4          Limitations
Regarding Indemnification. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY’S INDEMNIFICATION
OBLIGATION HEREUNDER COVER OR INCLUDE CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, SPECIAL OR SIMILAR DAMAGES OR LOST
PROFITS (INCLUDING ANY DIMINUTION IN VALUE OF ANY PARTY’S RESPECTIVE INVESTMENT IN THE PARTNERSHIP) SUFFERED, DIRECTLY OR
INDIRECTLY, BY ANY OTHER PARTY ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT.

 

ARTICLE
III

Services; Indebtedness

 

3.1          Provision
of General and Administrative Services. Cypress Holdings agrees to provide, and agrees to cause its Affiliates to provide,
on behalf of the General Partner for the Partnership Group’s benefit, all of the centralized overhead services that Cypress
Holdings and its Affiliates have traditionally provided in connection with the Assets including, without limitation, the general
and administrative services listed on Schedule III to this Agreement, and shall pay on behalf of the Partnership:

 

(a)          salaries
of employees of the General Partner and its Affiliates (other than the Partnership or its Subsidiaries), to the extent such employees
perform the foregoing services for the Partnership Group;

 

(b)          the
cost of employee benefits relating to employees of the General Partner and its Affiliates (other than the Partnership or its Subsidiaries),
including 401(k), pension, bonuses and health insurance benefits (whether through insurance policies provided by third parties
or self-insurance), to the extent such employees perform the foregoing services for the Partnership Group;

 

(c)          all
expenses incurred or payments made by the General Partner or its Affiliates for insurance coverage or deductibles with respect
to the Assets or the business of the Partnership Group as well as any claims received with respect to the Assets or the business
of the Partnership Group; and

 

(d)          all
expenses incurred as a result of the Partnership becoming and continuing as a publicly traded entity, including costs associated
with filings under the Securities Exchange Act of 1934, independent auditor fees, partnership governance and compliance, registrar
and transfer agent fees, tax return and Schedule K-1 preparation and distribution, legal fees and director compensation.

 

    	10

    	 

    

 

3.2         Administrative
Fee.

 

(a)          As
consideration for the provision of such services described in Section 3.1 by Cypress Holdings and CEM, the Partnership Group
shall pay to Cypress Holdings (i) on or before the tenth business day of the month following the month in which the Closing Date
occurs, an amount equal to $[  ̃ ] a day from and including the Closing
Date through the last day of the month in which the Closing Date occurs and (ii) commencing with the first full quarter after the
Closing Date, pay to Cypress Holdings an annual fee (the “Administrative Fee”) of $4,000,000 payable in arrears
in equal quarterly installments on or before the tenth business day of each subsequent quarter.

 

(b)          The
Administrative Fee shall be increased annually by the percentage equal to the increase, if any, in the Producer Price Index plus
one (1) percent. In the event that (i) the Partnership Group makes any material contribution, acquisition or disposition of assets
or businesses, (ii) a change occurs in the scope of services provided to the Partnership Group and the fees related thereto (iii)
a change occurs in an applicable Governmental Requirement or (iv) Cypress Holdings and the General Partner (including, if applicable,
its Board of Directors or the Conflicts Committee) so agree, then the Administrative Fee shall be appropriately adjusted, after
approval by the Conflicts Committee, in order to account for changes in the nature and extent of the general and administrative
services provided by Cypress Holdings to the Partnership Group.

 

(c)          On
a quarterly basis, the TIR Entities Manager shall in its sole discretion determine the portion of the Administrative Fee that is
allocable to the business of each TIR Entity on the basis of the gross margin contribution of each TIR Entity’s business
relative to the other businesses of the Partnership (but excluding the portion of the Administrative Fee that is not related to
any business segment of the Partnership), or on such other basis as is determined by the board of directors of the general partner
of the Partnership with the approval of the conflicts committee thereof. Following each such determination, each of the TIR Entities
Non-Controlling Interest Holders agrees to pay the TIR Entities Manager the respective share of such fee based on such TIR Entities’
Non-Controlling Interest Holders’ proportionate ownership of the applicable TIR Entity as of the end of the quarter in which
the determination is made. Such fee will be paid to the TIR Majority Interest Holder  from cash distributions made by TIR
otherwise payable to the TIR Non-Controlling Interest Holders.

 

3.3         Reimbursement
and Allocation.

 

(a)          The
Partnership Group shall reimburse Cypress Holdings for all tax costs and expenses incurred or payments made by Cypress Holdings
and its Affiliates on behalf of the Partnership Group including all sales, use, excise, value added, margin, franchise or similar
taxes, if any, that may be applicable from time to time associated with the ownership and operation of the Assets or with respect
to the services provided by the Partnership Group.

 

(b)          Such
reimbursements shall be made by the Partnership Group on or before the tenth business day of each quarter following the quarter
such costs and expenses are incurred. For the avoidance of doubt, the costs and expenses set forth in this Section 3.3 shall
be paid by the Partnership Group in addition to, and not as a part of or included in, the Administrative Fee. As long as the General
Partner is an Affiliate of Cypress Holdings, the Partnership and Cypress Holdings may settle the Partnership Group’s financial
obligations to Cypress Holdings through Cypress Holdings’ normal inter-affiliate settlement processes.

 

    	11

    	 

    

 

3.4        Limitation
on Indebtedness of CEP TIR. Holdings shall not, and shall cause Cypress Energy Investment, LLC, a Delaware limited liability
company and sole member of CEP TIR (“CEI”) not to, (a) amend, restate, supplement or otherwise modify the purpose
of CEP TIR as described in paragraph 4 of the Amended and Restated Limited Liability Company Agreement of Cypress Energy Partners
– TIR, LLC dated [  ̃ ], [  ̃ ]
made and entered into by CEI, (b) replace CEI as sole member of CEP TIR or (c) borrow, or cause to be borrowed or receive distributions
or cause to be distributed any proceeds from borrowings under any indebtedness incurred by any Partnership Group Member, in each
case, without first obtaining Special Approval (as defined in the Partnership Agreement).

 

3.5        TIR
Non-Controlling Interest Holders; Reimbursement. Each of the TIR Non-Controlling Interest Holders agrees to pay to the Partnership
a fee equal to each of their (i) pro rata share of interest due on the TIR Restructuring Indebtedness and (ii) the full amount
of the amortization expense of the Loan Origination Fee, on the basis of the respective ownership in interest in TIR of the TIR
Non-Controlling Interest Holders on [  ̃ ], 2013. Such fee will be
paid to the TIR Majority Interest Holder  in [  ̃ ] equal installments
from distributions made by TIR otherwise payable to the TIR Non-Controlling Interest Holders.

 

3.6        TIR
Entities Non-Controlling Interest Holders; Reimbursement. On a quarterly basis, the TIR Entities Manager shall in its sole
discretion determine the portion of the Partnership Indebtedness Interest that is allocable to the business of each TIR Entity
on the basis of the application of the proceeds of such indebtedness, or on such other basis as is determined by the board of directors
of the general partner of the Partnership with the approval of the conflicts committee thereof. Following each such determination,
each of the TIR Entities Non-Controlling Interest Holders agrees to pay the TIR Entities Manager the share of such interest payment
for Partnership Indebtedness Interest that is allocable to the business of each TIR Entity based on such TIR Entities Non-Controlling
Interest Holders’ proportionate ownership of the applicable TIR Entity as of the end of the quarter in which the determination
is made.

 

ARTICLE
IV

Right of First Offer

 

4.1         Right
of First Offer to Purchase Certain Assets.

 

(a)          For
the period beginning on the Closing Date and ending on the earlier of the fifth anniversary of the Closing Date and a Change of
Control (the “ROFO Period”), the Cypress Entities hereby grant to the Partnership Group a right of first offer
on any ROFO Asset to the extent that any Cypress Entity proposes to Transfer any ROFO Asset (other than to an Affiliate who agrees
in writing that such ROFO Asset remains subject to the provisions of this Article IV and such Affiliate assumes the obligations
under this Article IV with respect to such ROFO Asset) or enters into any agreement relating to such Transfer or proposed
Transfer of any ROFO Asset during the ROFO Period; provided, however, that Cypress Entities may transfer all or any part
of a ROFO Asset to an Affiliate of Cypress Holdings that agrees in writing that such ROFO Asset remains subject to the provisions
of this Article IV and such Affiliate assumes in writing the obligations of the Cypress Entities under this Article IV
with respect to such ROFO Asset, and such Transfer shall not be subject to the Partnership Group’s right of first offer under
this Article IV.

 

    	12

    	 

    

 

(b)          The
Parties acknowledge that any Transfer of ROFO Assets pursuant to the Partnership Group’s right of first offer is subject
to the terms of all existing agreements with respect to the ROFO Assets and shall be subject to and conditioned on the obtaining
of any and all necessary consents of security holders, governmental authorities, lenders or other third parties.

 

4.2         Procedures.

 

(a)          In
the event a Cypress Entity proposes to Transfer any applicable ROFO Asset (other than to an Affiliate, in accordance with Section
4.1(a)) during the ROFO Period (a “Proposed Transaction”), Cypress Holdings shall, prior to entering into
any such Proposed Transaction, first give notice in writing to the Partnership Group (the “ROFO Notice”) of
the intention to enter into such Proposed Transaction. The ROFO Notice shall include: (i) a description of the ROFO Assets subject
to the Proposed Transaction, and (ii) any material terms, conditions and details as would be necessary for a Partnership Group
Member to make a responsive offer to enter into the Proposed Transaction with the Cypress Entity, which terms, conditions and details
shall at a minimum include any terms, condition or details that Cypress Holdings would propose to provide to non-Affiliates in
connection with the Proposed Transaction. If the Partnership Group decides to purchase the ROFO Assets, the Partnership Group shall
have 45 days following receipt of the ROFO Notice (the “ROFO Response Deadline”) to propose an offer to enter
into the Proposed Transaction with the Cypress Entity (the “ROFO Response”). The ROFO Response shall set forth
the terms and conditions (including, without limitation, the purchase price the applicable Partnership Group Member proposes to
pay for the ROFO Asset and the other terms of the purchase including, if requested by a Cypress Entity, the terms on which the
Partnership Group Member will provide services to the Cypress Entity to enable the Cypress Entity to utilize the applicable ROFO
Asset) pursuant to which the Partnership Group would be willing to enter into a binding agreement for the Proposed Transaction.
If no ROFO Response is delivered by the Partnership Group by the ROFO Response Deadline, then the Partnership Group shall be deemed
to have decided not to purchase the applicable ROFO Assets, and the Partnership Group shall be deemed to have waived its right
of first offer with respect to such ROFO Asset, subject to Section 4.2(c).

 

(b)          If
Cypress Holdings rejects the ROFO Response or fails to respond to such ROFO Response within 45 days of the receipt thereof, such
ROFO Response shall be deemed to have been rejected by Cypress Holdings, and Cypress Holdings shall not be required to enter into
an agreement with the applicable Partnership Group Member regarding the Proposed Transaction. If Cypress Holdings accepts the ROFO
Response, it will confirm such acceptance in a written notice to the applicable Partnership Group Member upon the terms set forth
in the ROFO Response, and, if applicable, the Partnership Group Member shall enter into an agreement with the Cypress Entity setting
forth the terms on which the Partnership Group Member will provide services to the Cypress Entity to enable the Cypress Entity
to utilize the ROFO Asset. Unless otherwise agreed between Cypress Holdings and the applicable Partnership Group Member, the terms
of the purchase and sale agreement will include the following:

 

(i)          the
Partnership Group Member will deliver the agreed purchase price (in cash, Partnership Securities, an interest-bearing promissory
note, or any combination thereof);

 

    	13

    	 

    

 

(ii)         Cypress
Holdings will represent that it has title to the ROFO Assets that is sufficient to own and operate the ROFO Assets in accordance
with their intended and historical use, subject to all recorded matters and all physical conditions in existence on the closing
date for the purchase of the applicable ROFO Asset, plus any other such matters as the Partnership Group Member may approve. If
the Partnership Group Member desires to obtain any title insurance with respect to the ROFO Asset, the full cost and expense of
obtaining the same (including but not limited to the cost of title examination, document duplication and policy premium) shall
be borne by the Partnership Group Member;

 

(iii)        Cypress
Holdings will grant to the Partnership Group Member the right, exercisable at the Partnership Group Member’s risk and expense
prior to the delivery of the ROFO Response, to make such surveys, tests and inspections of the ROFO Asset as the Partnership Group
Member may deem desirable, so long as such surveys, tests or inspections do not damage the ROFO Asset or interfere with the activities
of Cypress Holdings;

 

(iv)        Cypress
Holdings and the applicable Partnership Group Member shall use commercially reasonable efforts to do or cause to be done all things
that may be reasonably necessary or advisable to effectuate the consummation of any transactions contemplated by this Section
4.2(b), including causing its respective Affiliates to execute, deliver and perform all documents, notices, amendments, certificates,
instruments and consents required in connection therewith; and

 

(v)         neither
Cypress Holdings nor the applicable Partnership Group Member shall have any obligation to sell or buy the applicable ROFO Asset
if any of the consents referred to in Section 4.1(b) has not been obtained.

 

(c)          If
the Partnership Group has not timely delivered a ROFO Response as specified above with respect to a Proposed Transaction that is
subject to a ROFO Notice, or if Cypress Holdings has rejected or is deemed to have rejected a ROFO Response, Cypress Holdings shall
be free to enter into a Proposed Transaction with any third party (i) on terms and conditions (excluding those relating to price)
that are not more favorable in the aggregate to such third party than those proposed in respect of the Partnership Group in the
ROFO Response and (ii) at a price equal to no less than 100% of the price offered by the applicable Partnership Group Member in
the ROFO Response to Cypress Holdings; provided, if such Proposed Transaction with a third party shall not have been consummated
within the later of (A) 180 days after the ROFO Response Deadline, and (B) 10 days after the satisfaction of all consent, governmental
approval or filing requirements, if any, then the ROFO Notice shall be deemed to have lapsed, and Cypress Holdings shall not Transfer
any of the ROFO Assets described in the ROFO Notice without complying again with the provisions of this Article IV if and to the
extent then applicable.

 

(d)          If
requested by the Partnership Group, the Cypress Entities shall use commercially reasonable efforts to obtain any financial statements
with respect to any ROFO Assets Transferred pursuant to this Article IV to the extent required under Regulation S-X
promulgated by the Securities and Exchange Commission or any successor statute.

 

    	14

    	 

    

 

ARTICLE
V

Licenses of Marks

 

5.1           Grant
of License. Upon the terms and conditions set forth in this Article V, Cypress Holdings hereby grants and conveys to the Partnership
and each of the entities currently or hereafter comprising a part of the Partnership Group a nontransferable, nonexclusive, royalty-free
right and license (the “License”) to use the name “Cypress” and “Tulsa Inspection Resources”
and any other associated or related service marks, trademarks, graphics and tradenames owned by Cypress Holdings (collectively,
the “Marks”).

 

5.2           
Ownership and Quality of Marks. The Partnership, on behalf of itself and the other Group Members, agrees that ownership
of the Marks and the goodwill relating thereto shall remain vested in Cypress Holdings during the term of the License and thereafter.
The Partnership agrees, and agrees to cause the other Group Members, never to challenge, contest or question the validity of Cypress
Holdings’ ownership of the Marks or any registration thereof by Cypress Holdings. In connection with the use of the Marks,
the Partnership and any other Group Member shall not in any manner represent that they have any ownership in the Marks or registration
thereof. The Partnership, on behalf of itself and the other Group Members, acknowledges that the use of the Marks shall not create
any right, title or interest in or to the Marks, and all use of the Marks by the Partnership or any other Group Member shall inure
to the benefit of Cypress Holdings. The Partnership agrees, and agrees to cause the other Group Members, to use the Marks in accordance
with such quality standards established by Cypress Holdings and communicated to the Partnership Group from time to time, it being
understood that the products and services offered by the Group Members as of the Closing Date are of a quality that is acceptable
to Cypress Holdings.

 

5.3           Termination.
The License shall terminate upon the termination of this Agreement pursuant to Section 6.6.

 

ARTICLE
VI

Miscellaneous

 

6.1           Offset;
TIR Entities. At any time when a TIR Entity is to pay or distribute any amount to any of its members, any amounts that a member,
in its capacity as a member, then owes to such TIR Entity or another member of such TIR Entity, whether pursuant to this Agreement
(including Sections 3.2(c), 3.5 and 3.6), a related agreement or otherwise, may be deducted from the amount to be paid or distributed
to each member of such TIR Entity before payment or distribution (with written notice to such member of such offset). In the event
of any amounts that a member of a TIR entity owes to another member of such TIR Entity, the TIR Entities Manager shall promptly
distribute such deducted amount to the appropriate member of such TIR Entity.

 

6.2           Choice
of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding
any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another
state. Each Party hereby submits to the jurisdiction of the state and federal courts in the State of Delaware and venue in the
State of Delaware

 

    	15

    	 

    

 

6.3           Non-Binding
Mediation. If the Parties cannot resolve any dispute or claim arising under this Agreement, then no earlier than 10 days nor
more than 60 days following written notice to the other Parties, any Party may initiate mandatory, non-binding mediation hereunder
by giving a notice of mediation (a “Mediation Notice”) to the other Parties to the dispute or claim. In connection
with any mediation pursuant to this Section 6.3, the mediator shall be jointly appointed by the Parties to the dispute or
claim and the mediation shall be conducted in [Tulsa, Oklahoma] unless otherwise agreed by the Parties to the dispute or claim.
All costs and expenses of the mediator appointed pursuant to this Section 6.3 shall be shared equally by the Parties to
the dispute or claim. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources,
Inc., either as written or as modified by mutual agreement of the Parties to the dispute or claim, shall govern any mediation pursuant
to this Section 6.3. In the mediation, each Party to the dispute or claim shall be represented by one or more senior representatives
who shall have authority to resolve any disputes. If a dispute or claim has not been resolved within 30 days after the receipt
of the Mediation Notice by a Party, then any Party to the dispute or claim may refer the resolution of the dispute or claim to
litigation.

 

6.4           Notice.
All notices or requests or consents provided for by, or permitted to be given pursuant to, this Agreement must be in writing and
must be given by depositing same in the United States mail, addressed to the Person to be notified, postpaid, and registered or
certified with return receipt requested or by delivering such notice in person or by facsimile to such Party. Notice given by personal
delivery or mail shall be effective upon actual receipt. Notice given by facsimile 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 to be sent to a Party pursuant to this Agreement
shall be sent to or made at the address set forth below such Party’s signature to this Agreement or at such other address
as such Party may stipulate to the other Parties in the manner provided in this Section 6.4.

 

If
to the Cypress Entities:

 

Cypress Energy Holdings,
LLC

[  ̃ ]

[  ̃ ]

Attn: [Executive Vice
President and General Counsel]

Facsimile: [  ̃ ]

 

If to the Partnership
Group:

 

Cypress Energy Partners,
L.P.

c/o Cypress Energy Partners GP, LLC, its General Partner

5727 S. Lewis Avenue, Suite 500

Tulsa, Oklahoma 74105

Attn: Executive Vice
President and General Counsel

Facsimile: [  ̃ ]

 

    	16

    	 

    

 

6.5           Entire
Agreement. This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein, superseding
all prior contracts or agreements, whether oral or written, relating to the matters contained herein.

 

6.6           Termination
of Agreement. This Agreement, other than the provisions set forth in Article II hereof, may be terminated by (a) the
written agreement of all of the Parties or (b) Cypress Holdings or the Partnership upon a Partnership Change of Control by written
notice given to the other Parties to this Agreement. For the avoidance of doubt, the Parties’ indemnification obligations
under Article II shall, to the fullest extent permitted by law, survive the termination of this Agreement in accordance
with their respective terms.

 

6.7           Amendment
or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the Parties
hereto. Any amendment hereto that the General Partner determines would materially adversely affect the holders of Common Units
must be approved by the Conflicts Committee. Each such instrument shall be reduced to writing and shall be designated on its face
an “Amendment” or an “Addendum” to this Agreement.

 

6.8           Assignment.
No Party shall have the right to assign its rights or obligations under this Agreement without the consent of the other Parties
hereto.

 

6.9           Counterparts.
This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same
document. All counterparts shall be construed together and shall constitute one and the same instrument. Delivery of an executed
signature page of this Agreement by facsimile transmission or in portable document format (.pdf) shall be effective as delivery
of a manually executed counterpart hereof.

 

6.10         Severability.
If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction,
the remainder of this Agreement shall remain in full force and effect.

 

6.11         Further
Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto
agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary
or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such
transactions.

 

6.12         Rights
of Limited Partners. The provisions of this Agreement are enforceable solely by the Parties to this Agreement, and no Limited
Partner of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement
or to compel any Party to this Agreement to comply with the terms of this Agreement.

 

[Signature
pages follow]

 

    	17

    	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Closing Date.

 

	 	CYPRESS ENERGY HOLDINGS, LLC
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	CYPRESS ENERGY MANAGEMENT, LLC
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	CYPRESS ENERGY PARTNERS, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:  
	 	 
	 	CYPRESS ENERGY PARTNERS, L.P.
	 	 
	 	By:	Cypress Energy Partners GP, LLC, 
	 	 	its general partner
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

[Signature
page to Omnibus Agreement]

 

    	 

    	 

    

 

	 	CYPRESS ENERGY PARTNERS GP, LLC
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	CHARLES C. STEPHENSON, JR.
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	CYNTHIA FIELD
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

[Signature
pages to Omnibus Agreement]

 

    	 

    	 

    

 

	 	CYPRESS ENERGY PARTNERS – TIR, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	FOLEY INSPECTION RESOURCES ULC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	TULSA INSPECTION RESOURCES, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	TULSA INSPECTION RESOURCES – 
	 	 	CANADA ULC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	TULSA INSPECTION RESOURCES – 
	 	 	HOLDINGS, LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature
pages to Omnibus Agreement]

 

    	 

    	 

    

 

	 	TULSA INSPECTION RESOURCES –
	 	 	NONDESTRUCTIVE, LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature
pages to Omnibus Agreement]

 

    	 

    	 

    

 

Schedule
I

Pending Environmental Issues

[  ̃ ]

 

    	 

    	 

    

 

Schedule
II

Pending Litigation

[  ̃ ]

 

    	 

    	 

    

 

Schedule
III

General and Administrative Services

 

		(1)	Executive services

		(2)	Financial and administrative services (including, but not limited to, treasury and accounting)

		(3)	Information technology services

		(4)	Legal services

		(5)	Corporate Health, safety and environmental services

		(6)	Human resources services

		(7)	Procurement services

		(8)	Corporate engineering services

		(9)	Business development services

		(10)	Investor relations

		(11)	Tax matters

		(12)	Insurance coverage

 

    	 

    	 

    

 

Schedule
IV

ROFO Assets

 

		(1)	Any assets used in, or entities engaged primarily in, providing saltwater disposal and other water environmental services to
U.S. onshore oil and natural gas producers and trucking companies in the U.S.

		(2)	Any assets or entities currently owned by or acquired from SBG Energy Services, LLC

		(3)	Any assets used in, or entities engaged primarily in, providing pipeline inspection and integrity services

		(4)	Additional equity interest in Cypress Energy Partners – TIR, LLC, Tulsa Inspection Resources, LLC, Tulsa Inspection Resources
– Nondestructive Examination, LLC, Tulsa Inspection Resources – Canada ULC and Foley Inspection Services ULC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]