STOCK OPTION AGREEMENT TERMS AND CONDITIONS (Rev. 2006)

Revised 2006

EXHIBIT 10.27

STOCK OPTION AGREEMENT

TERMS AND CONDITIONS
(Rev. 2006)

     These Terms and Conditions constitute a part of the Stock Option Agreement, dated as of the date set forth on the Signature Page to Stock Option Agreement Terms and Conditions made a part hereof (the “Signature Page”), concerning certain Options granted by Complete Production Services, Inc., a Delaware corporation hereinafter referred to as “Company,” to the employee of the Company (or an Affiliate of the Company) listed on the Signature Page, hereinafter referred to as “Employee.” These Terms and Conditions and the Signature Page are collectively referred to as the “Agreement.”

     WHEREAS, the Company wishes to afford the Employee the opportunity to purchase shares of its $0.01 par value Common Stock;

     WHEREAS, the Company wishes to carry out the Amended and Restated 2001 Stock Incentive Plan, as the same may be amended from time to time (the “Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and

     WHEREAS, the Administrator of the Plan has determined that it would be to the advantage and best interest of the Company and its stockholders to grant the Option provided for herein to the Employee as an inducement to enter into or remain in the service of the Company or an Affiliate of the Company and as an incentive for increased efforts during such service, and has advised the Company thereof and instructed the undersigned officers to issue said Option.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I.
DEFINITIONS

     Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates. Capitalized terms used but not defined in this Agreement shall have the meaning ascribed to such terms in the Plan.

Section 1.1. Administrator

     “Administrator” shall mean the entity that conducts the administration of the Plan (including the grant of Awards) as provided therein, and generally shall refer to the Compensation Committee of the Board, unless and to the extent (a) the Board has assumed the authority for administration of all or any part of the Plan, or (b) the Compensation Committee has delegated the authority for administration of all or part of the Plan.

Section 1.2. Affiliate

     “Affiliate” shall mean means any corporation, partnership, limited liability company or partnership, association, trust or other organization which, directly or indirectly, controls, is controlled by, or is under common control with, the Company. For purposes of the preceding sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as

used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of the controlled entity or organization, or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities or by contract or otherwise.

Section 1.3. Board

     “Board” shall mean the Board of Directors of the Company.

Section 1.4. Code

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

Section 1.5. Common Stock

     “Common Stock” shall mean the common stock of the Company, par value $0.01 per share, and any equity security of the Company issued or authorized to be issued in the future, but excluding any warrants, options or other rights to purchase Common Stock. Debt securities of the Company convertible into Common Stock shall be deemed equity securities of the Company.

Section 1.6. Change of Control Value

     “Change of Control Value” shall mean an amount equal the amount determined in clause (i), (ii) or (iii), whichever is applicable, as follows: (i) the per share price offered to stockholders of the Company in any merger, consolidation, sale of assets or dissolution transaction, (ii) the price per share offered to stockholders of the Company in any tender offer or exchange offer whereby a Company Change takes place, or (iii) if such Company Change occurs other than pursuant to a tender or exchange offer, the Fair Market Value per share of the shares into which such Options being surrendered are exercisable, as determined by the Administrator as of the date determined by the Administrator to be the date of cancellation and surrender of such Options.

Section 1.7. Company

     “Company” shall mean Complete Production Services, Inc., a Delaware corporation, or any successor corporation.

Section 1.8. Company Change

     “Company Change” shall mean an event whereby the Company shall not be the not be the surviving entity in any merger or consolidation (or survives only as a subsidiary of an entity), (ii) the Company sells, leases or exchanges or agrees to sell, lease or exchange all or substantially all of its assets to any other person or entity, (iii) the Company is to be dissolved and liquidated, (iv) any person or entity (other than SCF-IV, L.P. and its Affiliates), including a “group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power), or (v) contested election of the Board, the persons who were members of the Board before such election shall cease to constitute a majority of the Board.

Section 1.9. Employee

     “Employee” shall mean shall mean the employee granted an Option under this Agreement and the Plan and listed on the Signature Page.

Section 1.10. Exchange Act

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

Section 1.11. Option

     “Option” shall mean a non-qualified stock option and/or incentive stock option granted under this Agreement and Article VII of the Plan, as specified on the Signature Page.

Section 1.12. Plan

     “Plan” shall mean the Complete Production Services, Inc. Amended and Restated 2001 Stock Incentive Plan, as amended and/or restated from time to time.

Section 1.13. QDRO

     “QDRO” shall mean a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder.

Section 1.14. Rule 16b-3

     “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time.

Section 1.15. Secretary

     “Secretary” shall mean the Secretary of the Company.

Section 1.16. Securities Act

     “Securities Act” shall mean the Securities Act of 1933, as amended.

Section 1.17. Termination of Employment

     “Termination of Employment” shall mean the time when the employee-employer relationship between the Employee and the Company or any Affiliate is terminated for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, disability or retirement, but excluding (i) terminations where there is a simultaneous reemployment, continuing employment of the Employee by the Company or any Affiliate, (ii) at the discretion of the Administrator, terminations which result in a temporary severance of the employee-employer relationship, and (iii) terminations which are followed by the simultaneous establishment of a consulting relationship by the Company or any Affiliate with the Employee. The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a Termination of Employment resulted from a discharge for good cause, and all questions of whether particular leaves of absence constitute Terminations of

Employment. Notwithstanding any other provision of the Plan or this Agreement, the Company or any Affiliate has an absolute and unrestricted right to terminate the Employee’s employment at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in writing.

ARTICLE II.
GRANT OF OPTION

Section 2.1. Grant of Option

     Effective as of the Grant Date set forth on the Signature Page, the Company irrevocably grants to the Employee the option to purchase any part or all of the aggregate number of shares of its Common Stock set forth on the Signature Page, all upon the terms and conditions set forth in this Agreement. On the Signature Page, the Company has indicated for this Option to be either a non-qualified or incentive stock option, or to apportion the Option shares between the two.

Section 2.2. Purchase Price

     The per share purchase price of the shares of Common Stock covered by the Option is set forth on the Signature Page, and shall not be subject to commission or other charge.

Section 2.3. Consideration to Company

     In consideration of the granting of this Option by the Company, the Employee (i) agrees to render faithful and efficient services to the Company or its any Affiliate, with such duties and responsibilities as the Company or any Affiliate shall from time to time prescribe, for a period of at least one (1) year from the date this Option is granted, (ii) agrees not disclose or use, directly or indirectly, any proprietary or confidential information concerning the Company or any Affiliate so long as such information is proprietary and/or confidential, except any disclosure or use that is for the benefit of the Company or such Affiliate and incidental to the Employee’s employment, and (iii) agrees to abide by all of the terms and conditions of this Agreement and the Plan. Nothing in the Plan or this Agreement shall confer upon the Employee any right to continue in the employ of the Company or any Affiliate, or shall interfere with or restrict in any way the rights of the Company and any Affiliate, which are hereby expressly reserved, to discharge the Employee at any time for any reason whatsoever, with or without good cause.

Section 2.4. Adjustments in Option

     (a) In the event that the outstanding shares of the stock subject to the Option are changed into or exchanged for a different number or kind of shares of the Company or other securities of the Company, or of another corporation, by reason of reorganization, merger, consolidation, recapitalization, reclassification, stock split-up, stock dividend or combination of shares, the Administrator shall make an appropriate and equitable adjustment in the number and kind of shares as to which the Option, or portions thereof then unexercised, shall be exercisable, to the end that after such event the Employee’s proportionate interest shall be maintained as before the occurrence of such event. Such adjustment in the Option may include any necessary corresponding adjustment in the Option price per share, but shall be made without change in the total price applicable to the unexercised portion of the Option (except for any change in the aggregate price resulting from rounding-off of share quantities or prices). Any such adjustment made by the Administrator shall be final and binding upon the Employee, the Company and all other interested persons.

     (b) Notwithstanding the foregoing, in the event of a Company Change, the Administrator, acting in its sole discretion without the consent or approval of any Employee, shall effect one or more of the following alternatives, which alternatives may vary among individual Employees and which may vary among Options held by any individual Employee:

	•		accelerate the time at which Options then outstanding may be exercised so that such Option may be exercised in full for a limited period of time, after which time all unexercised Options and all rights of Employees thereunder shall terminate;
	•		require the mandatory surrender to the Company by selected Employees of some or all of the outstanding Options held by such Employees (irrespective of whether such Options are then exercisable under the provisions of the Plan), in which event the Administrator shall thereupon cancel such Options and cause the Company to pay to each Employee an amount of cash per share equal to the excess, if any, of the Change of Control Value of the shares subject to such Option over the exercise price(s) under such Options for such shares; or
	•		make such adjustments to Options then outstanding as the Administrator deems appropriate to reflect such Company Change (provided, however, that the Administrator may determine in its sole discretion that no adjustment is necessary to Options then outstanding), including, without limitation, adjusting an Option to provide that the number and class of shares of Common Stock covered by such Option shall be adjusted so that such Option shall thereafter cover securities of the surviving or acquiring corporation or other property (including, without limitation, cash).

ARTICLE III.

PERIOD OF EXERCISABILITY

Section 3.1. Commencement of Exercisability

     The Option shall become exercisable in the time and manner set forth on the Signature Page. Except as otherwise may be provided by the Administrator, no portion of the Option that is unexercisable at Termination of Employment shall thereafter become exercisable.

Section 3.2. Duration of Exercisability

     The installments provided for in the Signature Page are cumulative. Each such installment that becomes exercisable pursuant to the Signature Page shall remain exercisable until it becomes unexercisable under Section 3.3.

Section 3.3. Expiration of Option

     Except to the extent otherwise set forth in the Signature Page or any other agreement between the Company and the Employee, if applicable, the Option may not be exercised to any extent by anyone after the first to occur of the following events:

     (a) The expiration of ten (10) years from the date the Option was granted, as set forth on the Signature Page;

     (b) The expiration of three (3) months following the date of the Employee’s Termination of Employment, other than a Termination of Employment due to Employee’s death or disability (within the meaning of Section 22(e)(3) of the Code), unless the Employee dies within said three-month period;

     (c) The expiration of one (1) year from the date of the Employee’s Termination of Employment by reason of his disability (within the meaning of Section 22(e)(3) of the Code); or

     (d) The expiration of one (1) year from the date of the Employee’s death.

Section 3.4. Special Tax Consequences

     The Employee acknowledges that, to the extent that the aggregate fair market value of stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code), including all or such portion of the Option as noted on the Signature Page to be treated as an incentive stock option, are exercisable for the first time by the Employee during any calendar year (under the Plan and all other incentive stock option plans of the Company and any Affiliate of the Company) exceeds $100,000, such options shall be treated for all purposes as not qualifying under Section 422 of the Code and therefore shall be subject to taxation as non-qualified options. The Employee further acknowledges that the rules set forth in the preceding sentence shall be applied by taking options into account in the order in which they were granted.

ARTICLE IV.
EXERCISE OF OPTION

Section 4.1. Person Eligible to Exercise

     During the lifetime of the Employee, only he or she may exercise the Option or any portion thereof, or, to the extent the Option or any portion thereof is transferred in accordance with the terms of the Plan, such permitted transferee may exercise the Option or such portion thereof so transferred. After the death of the Employee, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 3.3, be exercised by his or her personal representative or by any person empowered to do so under the Employee’s will or under the then applicable laws of descent and distribution.

Section 4.2. Partial Exercise

     Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3; provided, however, that each partial exercise shall be for not less than one hundred (100) shares (or the minimum installment set forth in Section 3.1, if a smaller number of shares) and shall be for whole shares only.

Section 4.3. Manner of Exercise

     The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary or his office of all of the following prior to the time when the Option or such portion becomes unexercisable under Section 3.3:

     (a) Notice in writing signed by the Employee or the other person then entitled to exercise the Option or portion, stating that the Option or portion is thereby exercised, such notice complying with all applicable rules established by the Administrator or its designee;

     (b) Full payment to the Company of the aggregate exercise price, which payment shall be by any of the following, or a combination thereof:

     (i) In cash or check;

     (ii) Through the delivery of a notice that the Employee has placed a market sell order with a broker with respect to the shares of Common Stock then issuable upon exercise of the Option, and the broker pays a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price; or

     (iii) With the consent of the Administrator, through the surrender of shares of Common Stock then issuable upon exercise of the Option having a Fair Market Value on the date of Option exercise equal to the aggregate exercise price of the Option or exercised portion thereof; or

     (iv) With the consent of the Administrator, through the delivery (actually or constructively) of shares of Common Stock to the Company with a Fair Market Value on the date of Option exercise equal to the aggregate exercise price of the Option or exercised portion thereof; or

     (v) With the consent of the Administrator, through any other consideration permitted under the Plan and applicable law;

     (c) Full payment to the Company (or Affiliate employer) of all amounts which, under federal, state or local tax law, it is required to withhold upon exercise of the Option, which, with the consent of the Administrator, may be in the form of consideration used by the Employee to pay for such shares under Section 4.3(b); provided, however, that if such payment is in the form of shares of Common Stock withheld from exercise or delivered (actually or constructively) by the Employee, the Fair Market Value of such shares shall not exceed the sums necessary to pay the tax withholding based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income; and

     (d) In the event the Option or portion shall be exercised pursuant to Section 4.1 by any person or persons other than the Employee, appropriate proof of the right of such person or persons to exercise the Option.

Section 4.4. Conditions to Issuance of Stock Certificates

     The shares of stock deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued shares or issued shares, which have then been reacquired by the Company. Such shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any certificate or certificates for shares of stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions:

     (a) The admission of such shares to listing on all stock exchanges on which such class of stock is then listed;

     (b) The completion and continued availability of any registration or other qualification of such shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable;

     (c) The obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in its absolute discretion, determine to be necessary or advisable;

     (d) The receipt by the Company (or Affiliate employer) of full payment for such shares, including payment of all amounts which, under federal, state or local tax law, it is required to withhold upon exercise of the Option; and

     (e) The lapse of such reasonable period of time following the exercise of the Option as the Administrator may from time to time establish for reasons of administrative convenience.

Section 4.5. Rights as Stockholder

     The Employee shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of any part of the Option unless and until such shares of Common Stock shall have been issued by the Company to the Employee, as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company, or by the issuance of a stock certificate in Employee’s name.

ARTICLE V.
OTHER PROVISIONS

Section 5.1. Administration

     The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Employee, the Company and all other interested persons. No member of the Administrator shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Option. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Administrator under this Plan except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Administrator.

Section 5.2. Option Not Transferable

     (a) Subject to Section 5.2(b), neither the Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Employee or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 5.2(a) shall not prevent transfers by will or by the applicable laws of descent and distribution or, to the extent not prohibited by the Code, pursuant to a QDRO.

     (b) Notwithstanding the foregoing provisions of Section 5.2(a), the Administrator, in its sole discretion, may permit the transfer of the Option by the Employee, by gift or contribution, to a “family member” of the Employee (as defined under the instructions to use of Form S-8). Any Option that has been so transferred or transferred pursuant to a QDRO shall continue to be subject to all of the terms and conditions as applicable to the original Employee, and the transferee shall execute any and all such documents requested by the Administrator in connection with the transfer, including without limitation to evidence the transfer and to satisfy any requirements for an exemption for the transfer under applicable federal and state securities laws.

Section 5.3. Shares to Be Reserved

     The Company shall at all times during the term of the Option reserve and keep available such number of shares of stock as will be sufficient to satisfy the requirements of this Agreement.

Section 5.4. Notices

     Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Secretary, and any notice to be given to the Employee shall be addressed to him at the address given beneath his signature hereto. By a notice given pursuant to this Section 5.4, either party may hereafter designate a different address for notices to be given to him. Any notice, which is required to be given to the Employee, shall, if the Employee is then deceased, be given to the Employee’s personal representative if such representative has previously informed the Company of his status and address by written notice under this Section 5.4. Any notice shall be deemed duly given when delivered in person or enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

Section 5.5. Titles

     Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

Section 5.6. Construction

     This Agreement shall be administered, interpreted and enforced under the laws of the State of Delaware.

Section 5.7. Conformity to Securities Laws

     The Employee acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

Section 5.8. Notification of Disposition

     If this Option is designated as an Incentive Stock Option, the Employee shall give prompt notice to the Company of any disposition or other transfer of any shares of Common Stock acquired under

this Agreement if such disposition or transfer is made (a) within two years from the grant date with respect to such shares or (b) within one year after the transfer of such shares to the Employee. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by Employee in such disposition or other transfer.

Section 5.9. Arbitration

     In exchange for the option granted herein and the other promises exchanged herein, the parties agree to submit any and all disputes, claims or controversies arising out of, or relating to, Employee’s employment, to final and binding arbitration before the American Arbitration Association in accordance with its rules relating to the resolution of employment disputes, in effect at the time of the demand for arbitration. THE COMPANY AND THE EMPLOYEE UNDERSTAND AND AGREE THAT BY AGREEING TO THE PROVISIONS OF THIS SECTION 5.9 THEY ARE WAIVING THEIR RIGHT TO A JURY OR COURT TRIAL.

     This Section 5.9 expressly applies to all claims arising out of and relating to Employee’s employment, including without limitation to, any claims of employment discrimination, harassment, retaliation and any other employment related claim. This Section 5.9 expressly applies, but is not limited, to claims brought under Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Family Medical Leave Act, the Americans with Disabilities Act, the California Labor Code, the Texas Labor Code, the Fair Employment and Housing Act, and all other state and local laws. This Section 5.9 does not apply to those claims where expressly prohibited by law, such as claims arising under the National Labor Relations Act, claims for medical and disability benefits under applicable Workers’ Compensation statues and claims for unemployment benefits. Employees, officers, Board members and anyone else acting as an agent of the Company or any Affiliate are intended beneficiaries of this Section 5.9 and the parties agree that any claim against an intended beneficiary of this Section 5.9 arising out of or relating to Employee’s employment will be subject to this Section 5.9.

     This Section 5.9 may be enforced by any court of competent jurisdiction, and the party seeking enforcement shall be entitled to an award of all costs, fees and expenses, including attorneys fees, to be paid by the party against whom enforcement is ordered.

     The arbitration shall be held at the office of the American Arbitration Association in ▇▇▇▇▇▇ County, Texas before a single neutral arbitrator. The Company shall assume responsibility for any costs payable to the American Arbitration Association in connection with the arbitration, including the costs and fees of the arbitrator. However, the arbitrator shall make such orders with respect to attorneys’ fees and other costs in accordance with applicable law.

     The award or decision of the arbitrator shall be final and binding on the parties and judgment on the arbitrator’s decision may be entered in any court having jurisdiction. Each of the parties consents to the exercise of personal jurisdiction over such person by such court and to the propriety of venue of such court for the purpose of carrying out this provision; and each waives any objections that such person would otherwise have to the same.

     This Section 5.9 shall in no way effect Employee’s or the Company’s right to seek emergency injunctive relief from a court of competent jurisdiction, which relief may remain in full force and effect pending the outcome of the arbitration proceedings.

     Notwithstanding the foregoing, the provisions of this Section 5.9 shall be deemed modified and/or superceded to the extent necessary to be consistent with any applicable terms contained

in any employment agreement or other agreement between the Company and the Employee, which agreement shall take precedence over this Section 5.9.

Section 5.10. Amendments

     This Agreement may not be modified or amended in any way that adversely affects the Employee’s rights hereunder, except by an instrument in writing signed by the Employee or such other person as may be permitted to exercise the Option pursuant to Section 4.1 and by a duly authorized representative of the Company.