ITEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

In January 2015, the compensation committee of the board of directors (the “ Committee ”) of Key Energy Services, Inc. (the “ Company ”) approved a temporary compensation reduction program for certain employees (the “ Temporary Reduction Program ”). The Temporary Reduction Program was previously described within the Company’s Definitive Proxy Statement filed with the Securities and Exchange Commission (the “ SEC ”) on March 23, 2015 and again within the Company’s first Amendment to its Annual Report on Form 10-K/A filed with the SEC on April 20, 2016. In summary, the Temporary Reduction Program generally decreased base salaries for the Company’s corporate office employees at a rate of five percent (5%). With respect to the Company’s current named executive officers, the Temporary Reduction Program reduced base salaries by ten percent (10%) for Mr. Robert Drummond (the Company’s President and Chief Executive Officer, seven percent (7%) for Mr. J. Marshall Dodson (the Company’s Senior Vice President, Chief Financial Officer and Treasurer) and seven percent (7%) for Mr. Jeffrey S. Skelly (the Company’s Senior Vice President of Operations). The Temporary Reduction Program impacted base salaries for employees (including the named executive officers) on February 22, 2015 through August 1, 2016.

Effective August 1, 2016, the Committee approved the termination of the Temporary Reduction Program and the reinstatement of the annual base salaries for the named executive officers to the levels that were applicable immediately prior to the implementation of the Temporary Reduction Program (with the exception of Mr. Drummond, noted below), effective immediately and on a going-forward basis. None of the Company’s named executive officers had received a base salary increase for the 2016 calendar year other than Mr. Drummond, who received a base salary increase in connection with his promotion to the Company’s President and Chief Executive Officer position on March 5, 2016 (although his 2016 base salary increase was also subject to the same ten percent (10%) reduction that was imposed upon his 2015 base salary). The current amount of the annual base salary for each of the Company’s current named executive officers following the termination of the Temporary Reduction Program is as follows: Mr. Drummond’s base salary was reinstated to $750,000 from $675,000; Mr. Dodson’s base salary was reinstated to $375,000 from $348,750; and Mr. Skelly’s base salary was reinstated to $350,000 from $325,500.

Effective August 1, 2016, Mr. Skelly will no longer serve as the Company’s Senior Vice President of Operations. Mr. Skelly will remain an employee of the Company.