Summary of ALLIS CHALMERS ENERGY INC.

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

At the 2009 Annual Meeting of Stockholders held on November 6, 2009, the stockholders of Allis-Chalmers Energy Inc. (the "Company") approved the Allis-Chalmers Energy Inc. Second Amended and Restated 2006 Incentive Plan (the "Amended and Restated Plan"). The Amended and Restated Plan was approved by the Company's board of directors on September 18, 2009, subject to receipt of stockholder approval.

The Amended and Restated Plan (i) increased the maximum number of shares of the Company's common stock, par value $0.01 per share ("Common Stock"), that may be granted under such plan by an additional 7,000,000 shares, resulting in a total of 8,500,000 shares that may be granted thereunder, (ii) increased the annual limit on options that may be granted to any one participant from 200,000 shares of Common Stock to 3,000,000 shares of Common Stock, (iii) established an annual limit on the aggregate maximum number of incentive stock options that may be granted to any one participant of 8,500,000 shares of Common Stock and (iv) established an annual limit on the number of stock appreciation rights and share-based awards (other than options and stock appreciation rights) that may be granted to any one participant of 3,000,000 shares of Common Stock for each type of award.

The foregoing description is not complete and is qualified in its entirety by reference to the Amended and Restated Plan, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.