<SEC-DOCUMENT>0001001277-16-000020.txt : 20160627
<SEC-HEADER>0001001277-16-000020.hdr.sgml : 20160627
<ACCEPTANCE-DATETIME>20160627151247
ACCESSION NUMBER:		0001001277-16-000020
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20151231
FILED AS OF DATE:		20160627
DATE AS OF CHANGE:		20160627

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NOW Inc.
		CENTRAL INDEX KEY:			0001599617
		STANDARD INDUSTRIAL CLASSIFICATION:	OIL & GAS FILED MACHINERY & EQUIPMENT [3533]
		IRS NUMBER:				464191184
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-36325
		FILM NUMBER:		161733202

	BUSINESS ADDRESS:	
		STREET 1:		7402 NORTH ELDRIDGE PARKWAY
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77041
		BUSINESS PHONE:		281-823-4700

	MAIL ADDRESS:	
		STREET 1:		7402 NORTH ELDRIDGE PARKWAY
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77041
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>form11-k.htm
<TEXT>
<html>
<head>
<title></title>
<!--Licensed to: Locke Lord LLP
    Document created using EDGARfilings PROfile 4.1.0.0
    Copyright 1995 - 2016 Summit Financial Printing, LLC.  All rights reserved.-->
</head>
<body style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif" bgcolor="#ffffff" text="#000000">
<div>
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">
<hr style="BORDER-TOP: black 4px solid; HEIGHT: 10px; BORDER-BOTTOM: black 1px solid; COLOR: #ffffff; TEXT-ALIGN: center; MARGIN-LEFT: auto; BACKGROUND-COLOR: #ffffff; MARGIN-RIGHT: auto" align="center">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">
<table id="z64f45115ff5a4f8988c7e72a7807618c" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="WIDTH: 100%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">UNITED STATES</div>
</td>
</tr>

<tr>
<td style="WIDTH: 100%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">SECURITIES AND EXCHANGE COMMISSION</div>
</td>
</tr>

<tr>
<td style="WIDTH: 100%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">WASHINGTON, DC&#160; 20549</div>
</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 100%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 16pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 18.25pt">FORM 11-K</div>
</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 100%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE</div>
</td>
</tr>

<tr>
<td style="WIDTH: 100%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">SECURITIES EXCHANGE ACT OF 1934</div>
</td>
</tr>

<tr style="HEIGHT: 19px">
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 22.4%; VERTICAL-ALIGN: top" colspan="3">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (Mark One)</div>
</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;[ X ]</td>
<td style="WIDTH: 90.97%; VERTICAL-ALIGN: top" colspan="8">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 <font style="FONT-STYLE: italic">(No fee required, effective October 7, 1996)</font></div>
</td>
</tr>

<tr>
<td style="WIDTH: 51.29%; VERTICAL-ALIGN: top" colspan="6">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-STYLE: italic; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>
</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr style="HEIGHT: 22px">
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top; TEXT-ALIGN: center" colspan="10">&#160;For the fiscal year ended December 31, 2015</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 100%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Or</div>
</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr style="HEIGHT: 26px">
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;[&#160;&#160;&#160; ]</td>
<td style="WIDTH: 90.97%; VERTICAL-ALIGN: top" colspan="8">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 <font style="FONT-STYLE: italic">(No fee required)</font></div>
</td>
</tr>

<tr>
<td style="WIDTH: 22.4%; VERTICAL-ALIGN: top" colspan="3"></td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr style="HEIGHT: 23px">
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top; TEXT-ALIGN: center" colspan="10">
<div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For the transition period from _________ to ________</div>

<div>&#160;</div>
</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top; TEXT-ALIGN: center" colspan="10">&#160;<font style="FONT-SIZE: 12pt; FONT-WEIGHT: bold">Commission file number 001-36325</font></td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 94.21%; VERTICAL-ALIGN: top" colspan="9">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">A.&#160; Full title of the plan and the address of the plan, if different from that of the issuer named below</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>
</td>
</tr>

<tr>
<td style="WIDTH: 20.75%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>
</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4.01%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.98%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 7.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.63%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.86%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.43%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 10.21%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12.44%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 13.79%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 5.79%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 94.21%; VERTICAL-ALIGN: top" colspan="9">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">B.&#160; Name of issuer of the securities held pursuant to the plan and the address of its principal executive office</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>
</td>
</tr>

<tr>
<td style="WIDTH: 32.8%; VERTICAL-ALIGN: top" colspan="10">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">7402 North Eldridge Parkway&#160;&#160;&#160;&#160;&#160;&#160; </div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Houston, Texas 77041</div>

&#160;&#160;&#160;</td>
</tr>
</table>
</div>
</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div>&#160;</div>

<div>
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">REQUIRED INFORMATION</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The NOW Inc. 401(k) and Retirement Savings Plan (the Plan) is subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA).</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">Item 4.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold">&#160; </font>In lieu of the requirements of Items 1, 2, and 3 of this Form 11-K, the following financial statements of the Plan, notes thereto, and the Report of Independent Registered Public Accounting Firm thereon are being filed in this Report:</font></div>

<div>
<table id="zabd416086a9440888c9293a3397cc8b2" class="DSPFListTable" style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt">(a)</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Report of Independent Registered Public Accounting Firm</div>
</td>
</tr>
</table>
</div>

<div>
<table id="zed8af358188e46af96deb3a170d22c2d" class="DSPFListTable" style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt">(b)</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Statement of Net Assets Available for Benefits &#8211; December 31, 2015 and 2014</div>
</td>
</tr>
</table>
</div>

<div>
<table id="z498c339a4a814292b758fa4d93e1d843" class="DSPFListTable" style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt">(c)</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Statement of Changes in Net Assets Available for Benefits &#8211; Year ended December 31, 2015; and</div>
</td>
</tr>
</table>
</div>

<div>
<table id="z5024677d48ef4cadb51f3c04d1303f1a" class="DSPFListTable" style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt">(d)</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Notes to Financial Statements</div>
</td>
</tr>
</table>
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The Consent of Independent Registered Public Accounting Firm to the incorporation by reference of the foregoing financial statements in the Registration Statement on Form S-8 (No. 333-196529) pertaining to the Plan is being filed as Exhibit 23.1 to this Report.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>
</div>

<div>&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center">&#160;</div>

<div style="MARGIN-BOTTOM: 16pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 15.95pt">Financial Statements and Supplemental Schedules</div>

<div style="MARGIN-BOTTOM: 16pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 15.95pt">December&#160;31, 2015 and 2014, and Year Ended December 31, 2015</div>

<div style="MARGIN-BOTTOM: 16pt; FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-TOP: 56pt; LINE-HEIGHT: 15.95pt">Contents</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt; TEXT-INDENT: -9.35pt">
<table id="za76d19c9d4e845e88ef5af8a9dbf1c18" style="FONT-SIZE: 11pt; BORDER-TOP: medium none; FONT-FAMILY: 'Times New Roman', Times, serif; BORDER-RIGHT: medium none; WIDTH: 100%; BORDER-COLLAPSE: collapse; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 17.1pt">Report of Independent Registered Public Accounting Firm </div>
</td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt">&#160; 1</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt">&#160;</div>
</td>
</tr>

<tr>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 17.1pt">Financial Statements</div>
</td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div>&#160;</div>

<div>&#160;</div>
</td>
</tr>

<tr style="HEIGHT: 24px">
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 17.1pt">Statements of Net Assets Available for Benefits </div>
</td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt">&#160; 2</div>
</td>
</tr>

<tr>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 17.1pt">Statement of Changes in Net Assets Available for Benefits </div>
</td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt">&#160; 3</div>
</td>
</tr>

<tr style="HEIGHT: 19px">
<td style="FONT-SIZE: 12pt; BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">Notes to Financial Statements </td>
<td style="FONT-SIZE: 12pt; BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">&#160; 4</td>
</tr>

<tr>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none"></td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt; TEXT-INDENT: 27.9pt">&#160;</div>
</td>
</tr>

<tr>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 17.1pt">Supplemental Schedules</div>
</td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div>&#160;</div>

<div>&#160;</div>
</td>
</tr>

<tr>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 17.1pt">Schedule H, Line 4(a)&#160;&#8211; Schedule of Delinquent Participant Contributions </div>
</td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt">14</div>
</td>
</tr>

<tr>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 90%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 17.1pt">Schedule H, Line 4(i)&#160;&#8211; Schedule of Assets (Held At End of Year) </div>
</td>
<td style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 10%; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 54pt">15</div>
</td>
</tr>
</table>

<br style="LINE-HEIGHT: 13.7pt">
</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="FONT-SIZE: 12pt; TEXT-ALIGN: center; LINE-HEIGHT: 0pt">Report of Independent Registered Public Accounting Firm</div>

<div style="FONT-SIZE: 12pt; TEXT-ALIGN: center; LINE-HEIGHT: 0pt">&#160;</div>

<div style="LINE-HEIGHT: 0pt">&#160;</div>

<div style="LINE-HEIGHT: 0pt">&#160;</div>

<div style="LINE-HEIGHT: 0pt">&#160;</div>

<div style="LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="LINE-HEIGHT: 13.7pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 144pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 144pt">The Benefits Plan Administrative Committee</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 144pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">We have audited the accompanying statements of net assets available for benefits of the NOW Inc. 401(k) and Retirement Savings Plan as of December 31, 2015 and 2014, and the related statement of changes in net assets available for benefits for the year ended December 31, 2015. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of NOW Inc. 401(k) and Retirement Savings Plan at December 31, 2015 and 2014, and the changes in its net assets available for benefits for the year ended December 31, 2015, in conformity with U.S. generally accepted accounting principles.</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">&#160;</div>

<div id="DSPFPageBreakArea" style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'">The accompanying supplemental schedules of assets (held at end of year) as of December 31, 2015, and delinquent participant contributions for the year then ended, have been subjected to audit procedures performed in conjunction with the audit of NOW Inc. 401(k) and Retirement Savings Plan&#8217;s financial statements. The information in the supplemental schedules is the responsibility of the Plan&#8217;s management. Our audit procedures included determining whether the information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedules. In forming our opinion on the information, we evaluated whether such information, including its form and content, is presented in conformity with the Department of Labor&#8217;s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">/s/ Ernst &amp; Young LLP</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Houston, Texas</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">June 27, 2016</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">1</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="LINE-HEIGHT: 0pt"><br style="LINE-HEIGHT: 0pt">
</div>

<p style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center">NOW Inc. 401(k) and Retirement Savings Plan</p>

<p style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center">Statements of Net Assets Available for Benefits</p>

<div>
<table id="zccebf59bb8264481b07459fb87d9b982" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 90%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 33.85%; VERTICAL-ALIGN: bottom" colspan="2">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">December&#160;31</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">2015</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">2014</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Assets</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt">Cash</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.39pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">8,847</font></div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">24,483</font></div>
</td>
</tr>

<tr style="HEIGHT: 26px">
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt">Receivables:</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Pending trades</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">14,093</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Investment income</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">115</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">210</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Notes receivable from participants</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">6,256,645</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">6,730,057</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total receivables</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">6,270,853</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">6,730,267</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Investments, at fair value:</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">189,756,594</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">205,927,336</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total assets</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">196,036,294</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">212,682,086</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Liabilities</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Pending trades</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt">91,877</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total liabilities</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">91,877</div>
</td>
</tr>

<tr>
<td style="WIDTH: 66.15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Net assets available for benefits</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">$196,036,294</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 16.92%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">$212,590,209</div>
</td>
</tr>
</table>
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic; TEXT-ALIGN: left; MARGIN-TOP: 14pt; LINE-HEIGHT: 13.7pt">See accompanying notes.</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">2</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="LINE-HEIGHT: 0pt"><br style="LINE-HEIGHT: 0pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Statement of Changes in Net Assets Available for Benefits</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-TOP: 10pt; LINE-HEIGHT: 13.7pt">For the Year Ended December 31, 2015</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-TOP: 10pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div>
<table id="z15f8b6cd1dc342e18c41f7bc0887ac60" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 90%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Additions:</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Employer contributions</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">$10,899,664</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Participant contributions</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">10,720,417</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Participant rollovers</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">842,358</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Investment income</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">3,722,629</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Interest income on notes receivable from participants</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">254,110</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total additions</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">26,439,178</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Deductions:</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Benefits paid to participants</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">27,810,634</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Net depreciation in fair value of investments</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">14,783,321</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Administrative expenses</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">399,138</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total deductions</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">42,993,093</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">&#160;</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Net decrease</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">(16,553,915)</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr style="HEIGHT: 26px">
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Net assets available for benefits at:</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18.7pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Beginning of period</div>
</td>
<td style="WIDTH: 18.46%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">212,590,209</div>
</td>
</tr>

<tr>
<td style="WIDTH: 81.54%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">End of period</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 18.46%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 1.45pt; LINE-HEIGHT: 13.7pt">$196,036,294</div>
</td>
</tr>
</table>
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic; TEXT-ALIGN: left; MARGIN-TOP: 14pt; LINE-HEIGHT: 13.7pt">See accompanying notes.</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">3</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="LINE-HEIGHT: 0pt"><br style="LINE-HEIGHT: 0pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">December&#160;31, 2015</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">1. Description of Plan</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The following description of the NOW Inc. 401(k) and Retirement Savings Plan (the Plan) is provided for general information only. Participants should refer to the <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Summary Plan Description</font> for a more complete description of the Plan&#8217;s provisions, a copy of which is available from DNOW L.P., a wholly owned subsidiary of NOW Inc. (collectively referred to as &#8220;the Company&#8221;).</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -9.35pt">General</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Effective May 30, 2014, the Plan was established as a result of a spin-off from the National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan ("NOV Plan"). The Plan is a defined contribution plan covering substantially all domestic employees who have completed one hour of service, and is subject to the provisions of the Employment Retirement Income Security Act of 1974, as amended (ERISA).</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Contributions</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Participants may make both pretax and after-tax contributions to the Plan. The Plan allows pretax salary deferral contributions of 1% to 100% (less any after-tax contributions, required withholdings, or other elected deductions) of compensation, subject to certain Internal Revenue Service (IRS) limitations. The Plan allows participants to designate their salary deferral contributions as Roth contributions. After-tax contributions may be made at 1% to 18% of eligible compensation. However, combined pretax and after-tax contributions, required withholdings, and other elected deductions cannot exceed 100% of compensation. Participants age 50 and older may contribute additional pretax catch-up contributions, subject to IRS limitations.&#160; The Plan provides for the automatic enrollment and payroll deduction of 4% of a new eligible employee&#8217;s compensation as soon as practical following 60 days after employment.&#160; These funds are directed to the employee&#8217;s target retirement date (upon which the employee reaches the age of 65).</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">4</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt">1. Description of Plan (continued)</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">The Company matches 100% of the first 4% of each participant&#8217;s contribution. The Company may also make a discretionary contribution (the Employer Retirement Contribution) to the Plan. The amount of the Employer Retirement Contribution is determined based upon participants&#8217; eligible salary and years of service. For the period ended December&#160;31, 2015, the Company contributed $5,278,938 of Employer Retirement Contributions. Participants must have completed one year of service in order to receive Company matching and Employer Retirement Contributions.</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Each participant may direct the trustee to invest both the participant&#8217;s and the Company&#8217;s contributions in one or more of the investment options offered by the Plan.</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -9.35pt">Vesting</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Participants are immediately 100% vested in their participant and employer contributions and the related earnings that have been credited to their accounts.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -9.35pt">Benefit Payments</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The Plan pays lump-sum benefits upon retirement, disability, death, or termination of employment. In-service withdrawals, subject to certain rules and restrictions, may also be made from certain account balances.</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">5</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-LEFT: 12.25pt; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">1. Description of Plan (continued)</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><br>
 Participant Loans</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The Plan includes a loan provision that permits participants to borrow a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of the total value of their Plan assets. The loans are payable in principal installments, plus interest, at prime plus one percent through payroll deductions and are due in one- to five-year terms, unless the loan is used to acquire a principal residence, in which case the loan term cannot exceed ten years. Repayments are made ratably through payroll deductions.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Participant loans are recorded on the financial statements as notes receivable from participants at their unpaid principal balance plus any accrued but unpaid interest. Interest income on notes receivable from participants is recorded when it is earned. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of December&#160;31, 2015. If a participant ceases to make loan repayments and the plan administrator deems the participant loan to be a distribution, the participant loan balance is reduced and a benefit payment is recorded.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -9.35pt">Administrative Expenses</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Certain administrative expenses are paid from the Plan&#8217;s assets. All other Plan expenses are paid by the Company.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -9.35pt">Plan Termination</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. Participants are 100% vested in their accounts in any event. Assets would be distributed to participants as prescribed by ERISA.</div>

<div style="MARGIN-BOTTOM: 14pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">6</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="FONT-SIZE: 12pt; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>

<div style="TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">2. Summary of Accounting Policies</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">Basis of Accounting</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting. Benefit payments to participants are recorded upon distribution.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -9.35pt">Use of Estimates</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements, accompanying notes, and supplemental schedule. Actual results could differ from those estimates.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Investment Valuation and Income Recognition</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Wells Fargo, N.A. serves as the Plan&#8217;s trustee and holds all investments of the Plan. Investments held by the Plan are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). See Note&#160;3 for further discussion of fair value measurements.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded on the record date. Net depreciation includes the Plan&#8217;s gains and losses on investments bought and sold as well as held during the period.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -9.35pt">Risks and Uncertainties</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The Plan provides for investments in various investment securities that, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits and participant account balances.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">7</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: Arial, sans-serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt">2. Summary of Accounting Policies (continued)</div>
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">New Accounting Pronouncements</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">In May 2015, the </font>Financial Accounting Standards Board (FASB) <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">issued Accounting Standards Update (ASU) No. 2015-07,</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic"> Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">, (ASU 2015-07). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value (NAV) practical expedient provided by Accounting Standards Codification 820,</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic"> Fair Value Measurement (ASC 820)</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">.</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif"> Disclosures about investments in certain entities that calculate NAV per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the NAV practical expedient. ASU 2015-07 is effective for entities (other than public business entities) for fiscal years beginning after December 15, 2016, with retrospective application to all periods presented. Early application is permitted. Management has elected to adopt ASU 2015-07 early.</font></div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">In July 2015, the FASB&#160; issued ASU 2015-12, <font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient</font>. Part I of the ASU eliminates the requirements to measure the fair value of fully benefit-responsive investment contracts and provide certain disclosures. Contract value is the only required measure for fully benefit-responsive investment contracts. Part II of the ASU eliminates the requirements to disclose individual investments that represent 5 percent or more of net assets available for benefits and the net appreciation or depreciation in fair value of investments by general type. It also simplifies the level of disaggregation of investments that are measured using fair value. Plans will continue to disaggregate investments that are measured using fair value by general type; however, plans are no longer required to also disaggregate investments by nature, characteristics and risks. Further, the disclosure of information about fair value measurements shall be provided by general type of plan asset. Part III of the ASU is not applicable to the Plan. The ASU is effective for fiscal years beginning after December 15, 2015. Parts I and II are to be applied retrospectively. Management has elected to adopt Parts I and II of the ASU early.</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">8</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="MARGIN-BOTTOM: 14pt; LINE-HEIGHT: 13.7pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: Arial, sans-serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">3. Fair Value Measurements</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The fair value framework establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.&#160; The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level&#160;1) and the lowest priority to unobservable inputs (Level&#160;3). The three levels of the fair value hierarchy are described below:</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt">Level&#160;1&#160;&#8211; Unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets and liabilities.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt">Level&#160;2&#160;&#8211; Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level&#160;2 inputs include the following:</div>

<div>
<table id="z0b7b7425a8bf4c2ca09cde0a74b42940" class="DSPFListTable" style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">&#8226;</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">quoted prices for similar assets and liabilities in active markets;</div>
</td>
</tr>
</table>
</div>

<div>
<table id="z2060de6380494f7bb62b6c9f205b20b1" class="DSPFListTable" style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">&#8226;</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">quoted prices for identical or similar assets or liabilities in markets that are not active;</div>
</td>
</tr>
</table>
</div>

<div>
<table id="z38893adf57e845d8bb849017e11aafdb" class="DSPFListTable" style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">&#8226;</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">observable inputs other than quoted prices that are used in the valuation of the asset or liabilities (e.g.,&#160;interest rate and yield curve quotes at commonly quoted intervals);</div>
</td>
</tr>
</table>
</div>

<div>
<table id="z99540dd440f74dd4a1de9f2f69da94cb" class="DSPFListTable" style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 54pt; VERTICAL-ALIGN: top; align: right">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">&#8226;</div>
</td>
<td style="WIDTH: auto; VERTICAL-ALIGN: top">
<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">inputs that are derived principally from or corroborated by observable market data by correlation or other means.</div>
</td>
</tr>
</table>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt">Level&#160;3&#160;&#8211; Unobservable inputs for the asset or liability (i.e.,&#160;supported by little or no market activity). Level&#160;3 inputs include management&#8217;s own assumption about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).&#160; Currently, there are no level 3 assets present within the plan.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety.</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">9</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: Arial, sans-serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">3. Fair Value Measurements (continued)</div>
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Following is a description of the valuation techniques and inputs used for each general type of assets measured at fair value by the Plan:</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Common stocks:</font> Valued at the closing price reported on the active market on which the individual securities are traded.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Mutual funds:</font> Valued at the quoted NAV of shares held by the Plan at year-end.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 18pt; LINE-HEIGHT: 13.7pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">Common collective trust funds: </font>Valued at the NAV of shares held by the Plan at year-end as reported by the fund manager.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The following tables set forth, by level within the fair value hierarchy, the Plan&#8217;s assets carried at fair value:</div>

<div>
<table id="z89dd5dd534c3486385e044b8205fdb2f" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 90%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid" colspan="4">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Assets at Fair Value as of December&#160;31, 2015</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Level&#160;1</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Level&#160;2</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Level&#160;3</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Total</div>
</td>
</tr>

<tr style="HEIGHT: 23px">
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Common stock</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160;&#160;&#160; 12,256,861</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160;&#160;&#160; 12,256,861</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Mutual funds</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">143,970,646</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">143,970,646</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Self-directed brokerage accounts</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">1,549,357</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">1,549,357</div>
</td>
</tr>

<tr style="HEIGHT: 21px">
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total assets at fair value</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160;&#160;157,776,864</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$&#160;&#160; </font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160; 157,776,864</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 4px double; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 4px double; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 4px double; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Common collective trust funds, measured at NAV</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">31,979,730</div>
</td>
</tr>

<tr style="HEIGHT: 24px">
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total investments</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160; 189,756,594</div>
</td>
</tr>
</table>
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">10</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: Arial, sans-serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>

<br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">3. Fair Value Measurements (continued)</div>

<div>
<table id="z551d312c18fe4d688c65cd81d5066cee" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 90%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" align="left" border="0">
<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid" colspan="4">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Assets at Fair Value as of December&#160;31, 2014</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Level&#160;1</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Level&#160;2</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Level&#160;3</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Total</div>
</td>
</tr>

<tr style="HEIGHT: 18px">
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr style="HEIGHT: 22px">
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Common stock</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160;&#160;&#160; 23,794,802</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160;&#160;&#160; 23,794,802</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Mutual funds</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">153,353,448</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">153,353,448</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Self-directed brokerage accounts</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">1,769,576</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">&#8211;</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">1,769,576</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total assets at fair value</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160; 178,917,826</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.13pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160;&#160;178,917,826</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 4px double; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 4px double; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 4px double; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">Common collective trust funds, measured at NAV</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">27,009,510</div>
</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 52%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Total investments</div>
</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160;&#160;&#160; 205,927,336</div>
</td>
</tr>
</table>
</div>

<div style="MARGIN-BOTTOM: 14pt; CLEAR: both; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">4. Common Collective Trusts</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The Wells Fargo Stable Return Fund N, is a common collective trust fund established, operated and maintained by Wells Fargo Bank, N.A. with the objective of providing a moderate level of stable income without principal volatility. Participant-directed redemptions have no restrictions; however, the Plan is required to provide a one-year redemption notice to liquidate its entire share in the fund.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The Wells Fargo Short Term Investment Fund S is a common collective trust fund which invests primarily in short term fixed income securities.&#160; There are currently no redemption restrictions on this investment.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">5. Related-Party Transactions</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Certain investments of the Plan are managed by Wells Fargo, N.A., the trustee of the Plan; therefore, these transactions qualify as party-in-interest transactions. Additionally, a portion of the Plan&#8217;s assets are invested in the Company&#8217;s common stock. Because the Company is the plan sponsor, transactions involving the Company&#8217;s common stock qualify as party-in-interest transactions. All of these transactions are exempt from the prohibited transactions rules under ERISA.</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">11</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">Notes to Financial Statements (continued)</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">&#160;</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">6. Income Tax Status</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt">The Plan has received a determination letter from the IRS dated August 21, 2015, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (IRC) and; therefore, the related trust is exempt from taxation.&#160;Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualified status.&#160; The plan administrator has indicated that it will take the necessary steps, if any, to bring the Plan&#8217;s operations into compliance with the IRC.</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">U.S. generally accepted accounting principles require plan management to evaluate uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan and has concluded that, as of December&#160;31, 2015, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">7. Reconciliation of Financial Statements to Form 5500</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">As discussed in Note 2, the Plan adopted ASU 2015-12 in the current year.&#160; As a result, the Plan no longer identifies the Wells Fargo Stable Return Fund as a fully benefit-responsive investment contract.&#160; The financial statements and the Form 5500 both present the Wells Fargo Stable Return Fund at fair value measured using the NAV practical expedient as of December 31, 2015.&#160; The Form 5500 measured fair value in a different manner as of December 31, 2014.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">12</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: Arial, sans-serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Notes to Financial Statements (continued)</div>

<br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 12.25pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -12.25pt">7. Reconciliation of Financial Statements to Form 5500 (continued)</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The following is a reconciliation of the&#160;net assets available for benefits per the financial statements to&#160;the Form 5500:</div>

<div>
<table id="ze0ce391847484aab846d3127fa88b186" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="WIDTH: 70%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="VERTICAL-ALIGN: bottom" colspan="2">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">December&#160;31</div>
</td>
</tr>

<tr>
<td style="WIDTH: 70%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">2015</div>
</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">2014</div>
</td>
</tr>

<tr>
<td style="WIDTH: 70%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 24pt; TEXT-INDENT: -9.35pt">Net assets available for benefits per the financial statements</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">$&#160;&#160;&#160; 196,036,294</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 15%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">$&#160;&#160; 212,590,209</div>
</td>
</tr>

<tr>
<td style="WIDTH: 70%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 24pt; TEXT-INDENT: -9.35pt">Adjustment from fair value to contract value for fully benefit-responsive investment contracts</div>
</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">-</div>
</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">362,837</div>
</td>
</tr>

<tr>
<td style="WIDTH: 70%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 24pt; TEXT-INDENT: -9.35pt">Net assets available for benefits per the Form 5500</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 15%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">$&#160;&#160;&#160; 196,036,294</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 15%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">$&#160;&#160;&#160; 212,953,046</div>
</td>
</tr>
</table>
</div>

<div style="MARGIN-BOTTOM: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 14pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">The following is a reconciliation of the net decrease in net assets available for benefits per the financial statements to the net loss per the Form 5500:</div>

<div>
<table id="z05db8c0547aa4834a024cfc8510f8317" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 79.83%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 20.17%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Year Ended December 31, 2015</div>
</td>
</tr>

<tr>
<td style="WIDTH: 79.83%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 40.35pt; TEXT-INDENT: -9.35pt">Net decrease per the financial statements</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 20.17%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160; (16,553,915)</div>
</td>
</tr>

<tr>
<td style="WIDTH: 79.83%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 40.35pt; TEXT-INDENT: -9.35pt">Adjustment from fair value to contract value for fully benefit-responsive investment contracts at December&#160;31, 2014</div>
</td>
<td style="WIDTH: 20.17%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(362,837)</div>
</td>
</tr>

<tr>
<td style="WIDTH: 79.83%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 40.35pt; TEXT-INDENT: -9.35pt">Transfer of assets to this Plan as reported on the Form 5500</div>
</td>
<td style="WIDTH: 20.17%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(80,366)</div>
</td>
</tr>

<tr>
<td style="WIDTH: 79.83%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 20.17%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 79.83%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 40.35pt; TEXT-INDENT: -9.35pt">Net loss per the Form 5500</div>
</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 20.17%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 13.7pt">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; (16,997,118)</div>
</td>
</tr>
</table>
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 14pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">13</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="FONT-SIZE: 14pt; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 0pt">Supplemental Schedules</div>

<div style="FONT-SIZE: 14pt; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 2.5">&#160;</div>

<div style="FONT-SIZE: 14pt; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 2.5">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-WEIGHT: normal; TEXT-ALIGN: center; LINE-HEIGHT: 2.5">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="MARGIN-BOTTOM: 16pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 15.95pt">Plan No.&#160;001 EIN 74-0989800</div>

<div style="MARGIN-BOTTOM: 16pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 15.95pt">Schedule H, Line 4(a)&#160;&#8211; Schedule of Delinquent Participant Contributions</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-TOP: 10pt; LINE-HEIGHT: 13.7pt">Year Ended December&#160;31, 2015</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-TOP: 10pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div>
<table id="zef88011a3ee747979a88328c706f48b5" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 20.99%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Participant Contributions </div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Transferred&#160;Late to Plan</div>
</td>
<td style="WIDTH: 59.65%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid" colspan="3">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Total that Constitute Nonexempt Prohibited Transactions</div>
</td>
<td style="WIDTH: 19.37%; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 2px solid" rowspan="2">
<div style="LINE-HEIGHT: 12.55pt">&#160;</div>

<div style="LINE-HEIGHT: 12.55pt">&#160;</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Total Fully Corrected Under VFCP and PTE&#160;2002-51</div>

<div style="LINE-HEIGHT: 12.55pt">&#160;</div>
</td>
</tr>

<tr>
<td style="WIDTH: 20.99%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Check here if Late Participant Loan Repayments are included: <font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#9745;</font></div>
</td>
<td style="WIDTH: 19.37%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Contributions Not Corrected</div>
</td>
<td style="WIDTH: 19.29%; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 2px solid">
<div style="LINE-HEIGHT: 12.55pt">&#160;</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Contributions Corrected Outside VFCP</div>
</td>
<td style="WIDTH: 20.99%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Contributions Pending Correction in VFCP</div>
</td>
</tr>

<tr>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 20.99%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 19.37%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 19.29%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 20.99%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 19.37%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 20.99%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; 3,220</div>
</td>
<td style="WIDTH: 19.37%; VERTICAL-ALIGN: top">
<div style="TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#160; &#160; &#160; &#160; &#160;&#160; &#8211;</font></div>
</td>
<td style="WIDTH: 19.29%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160; &#160; &#160; &#160; &#160;&#160; 3,220<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></div>
</td>
<td style="WIDTH: 20.99%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: justify; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.28pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="WIDTH: 19.37%; VERTICAL-ALIGN: top">
<div style="TEXT-ALIGN: justify; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.28pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
</tr>

<tr>
<td style="WIDTH: 20.99%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 770,926</div>
</td>
<td style="WIDTH: 19.37%; VERTICAL-ALIGN: top">
<div style="TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif">&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#160; &#160; &#160; &#160; &#160;&#160; &#8211;</font></div>
</td>
<td style="WIDTH: 19.29%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$&#160; &#160; &#160;&#160; 770,926<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup></div>
</td>
<td style="WIDTH: 20.99%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: justify; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.28pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
<td style="WIDTH: 19.37%; VERTICAL-ALIGN: top">
<div style="TEXT-ALIGN: justify; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.28pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">&#8211;</font></div>
</td>
</tr>
</table>
</div>

<div style="LINE-HEIGHT: 9.1pt"><br style="LINE-HEIGHT: 9.1pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;FONT-FAMILY: Arial, sans-serif">(1)</sup>Represents delinquent participant contributions from June through December 2014 pay periods. The Company remitted lost earnings to the Plan in 2015, and has filed the required Form 5330.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;FONT-FAMILY: Arial, sans-serif">(2)</sup>Represents delinquent participant contributions from February through November 2015 pay periods. The Company intends to remit lost earnings to the Plan in 2016, and intends to file the required Form 5330.</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">14</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-TOP: 24pt; LINE-HEIGHT: 13.7pt"><font style="FONT-WEIGHT: normal">NOW Inc. 401(k) and Retirement Savings Plan</font><br>
</div>

<div style="MARGIN-BOTTOM: 16pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: center; LINE-HEIGHT: 15.95pt">Plan No.&#160;001 EIN 74-0989800</div>

<div style="MARGIN-BOTTOM: 16pt; FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 15.95pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'">Schedule H, Line 4(i)&#160;&#8211; Schedule of Assets</font><font style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', serif"><br>
</font><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'">(Held at End of Year)</font></div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-TOP: 10pt; LINE-HEIGHT: 13.7pt">December&#160;31, 2015</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: normal; TEXT-ALIGN: center; MARGIN-TOP: 10pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div>
<table id="z6fd1ad3636684a4c80537a3da17f4abe" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 80%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Identity of Issue, Borrower, </div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Lessor, or Similar Party</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Description of Investment</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt">Current Value</div>
</td>
</tr>

<tr>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 50%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 34.54%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 15.46%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">*NOW Inc.</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">223,978 shares of common stock</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">$</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.18pt">&#160;&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif">3,543,332</font></div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">National Oilwell Varco, Inc.</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">260,183 shares of common stock</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">8,713,529</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Allianz Global Investors</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Allianz NFJ Small Cap Value I</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">5,190,907</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">American Funds</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">American Funds Growth R6</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">22,069,692</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Cullen/Frost Bankers, Inc.</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Frost Total Return</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">23,911,907</div>
</td>
</tr>

<tr style="HEIGHT: 19px">
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Van Kampen Funds</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Invesco Growth and Income R5</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">17,498,136</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Oakmark Funds</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Oakmark International I</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">12,952,308</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard FTSE All World ex-US Index I</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">10,670,621</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard Inflation-Protected Secs I</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">5,372,398</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard Mid Cap Index I</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">19,020,690</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard Small Cap Growth I</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">6,206,832</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Vanguard Institutional Index I</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">16,635,226</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Dimensional Fund Advisors</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">DFA Global Real Estate</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">4,441,929</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">*Wells Fargo Bank, N.A.</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Wells Fargo Stable Return Fund N</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">31,263,556</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">*Wells Fargo Bank, N.A.</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Short Term Investment Fund S</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">716,174</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Various &#8211; Other</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Self-directed brokerage accounts</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">1,549,357</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">*Participant loans</div>
</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; MARGIN-LEFT: 9.35pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 3.6pt; TEXT-INDENT: -9.35pt">Various maturities and interest rates ranging from 4.25% to 9.25%</div>
</td>
<td style="WIDTH: 15.46%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">6,256,645</div>
</td>
</tr>

<tr>
<td style="WIDTH: 50%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 34.54%; VERTICAL-ALIGN: top">&#160;</td>
<td style="BORDER-TOP: #000000 2px solid; WIDTH: 15.46%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 4px double">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; MARGIN-LEFT: 2.9pt; LINE-HEIGHT: 12.55pt">$196,013,239</div>
</td>
</tr>
</table>
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: Arial, sans-serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 12.55pt">*Party in interest</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: Arial, sans-serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-TOP: 24pt; LINE-HEIGHT: 12.55pt">&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">15</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always; TEXT-ALIGN: center">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div>&#160;</div>

<div>
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">SIGNATURE</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-STYLE: italic">The Plan.&#160; </font>Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 216pt; LINE-HEIGHT: 14pt"><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; MARGIN-LEFT: 216pt; LINE-HEIGHT: 14pt">&#160;</div>

<div id="EFPFTCL" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 48%; FLOAT: left; FONT-WEIGHT: normal; FONT-STYLE: normal">
<div style="TEXT-ALIGN: left"><u>June 27, 2016<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font></font></u></div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal; TEXT-ALIGN: left">Date</div>
</div>

<div id="EFPFTCR" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 48%; FLOAT: right; FONT-WEIGHT: normal; FONT-STYLE: normal">
<div style="FONT-SIZE: 12pt; FONT-WEIGHT: bold; TEXT-ALIGN: left">NOW Inc. 401(k) and Retirement Savings Plan</div>

<div style="FONT-SIZE: 12pt; FONT-WEIGHT: bold; TEXT-ALIGN: left">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-WEIGHT: bold; TEXT-ALIGN: left">&#160;</div>

<div style="TEXT-ALIGN: left"><u>/s/ Daniel L. Molinaro<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font>&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font>&#160;&#160;</font></u></div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal; TEXT-ALIGN: left">Daniel L. Molinaro</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal; TEXT-ALIGN: left">Member of the NOW Inc. Benefits Plan Administrative Committee</div>
</div>

<div style="MARGIN-BOTTOM: 10pt; TEXT-ALIGN: left; FONT: 11pt/14pt 'Times New Roman', Times, serif; MARGIN-LEFT: 216pt; CLEAR: both">&#160;</div>

<div style="MARGIN-BOTTOM: 10pt; TEXT-ALIGN: left; FONT: 11pt/14pt 'Times New Roman', Times, serif; MARGIN-LEFT: 216pt; CLEAR: both">&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal; CLEAR: both; MARGIN-TOP: 11pt">&#160;</div>

<div style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">
<div style="TEXT-ALIGN: center; FONT: 11pt/13.7pt 'Times New Roman', Times, serif; BACKGROUND-COLOR: #e8e8ec">EXHIBIT INDEX</div>

<div style="FONT: 11pt/13.7pt 'Times New Roman', Times, serif; BACKGROUND-COLOR: #e8e8ec"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT: 11pt/13.7pt 'Times New Roman', Times, serif; BACKGROUND-COLOR: #e8e8ec"><br style="LINE-HEIGHT: 13.7pt">
</div>

<table id="zfda177691b8a46fe8c19d02f99111505" style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0">
<tr style="HEIGHT: 30px">
<td style="WIDTH: 19.84%; VERTICAL-ALIGN: top; BORDER-BOTTOM: black 2px solid; BACKGROUND-COLOR: #ffffff">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Exhibit Number</div>
</td>
<td style="WIDTH: 80.16%; VERTICAL-ALIGN: top; BORDER-BOTTOM: black 2px solid; BACKGROUND-COLOR: #ffffff">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Description</div>

<div style="LINE-HEIGHT: 13.7pt">&#160;</div>
</td>
</tr>

<tr>
<td style="WIDTH: 19.84%; VERTICAL-ALIGN: top; BACKGROUND-COLOR: #ffffff">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">23.1</div>
</td>
<td style="WIDTH: 80.16%; VERTICAL-ALIGN: top; BACKGROUND-COLOR: #ffffff">
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">Consent of Independent Registered Public Accounting Firm</div>

<div style="LINE-HEIGHT: 13.7pt">&#160;</div>
</td>
</tr>
</table>

<div style="FONT: 11pt/13.7pt 'Times New Roman', Times, serif; BACKGROUND-COLOR: #e8e8ec"><br style="LINE-HEIGHT: 13.7pt">
</div>
</div>

<div style="MARGIN-BOTTOM: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal; CLEAR: both; MARGIN-TOP: 11pt">&#160;</div>

<div style="MARGIN-BOTTOM: 11pt; CLEAR: both; MARGIN-TOP: 11pt">&#160;</div>
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>2
<FILENAME>ex-23.htm
<TEXT>
<html>
<head>
<title></title>
<!--Licensed to: Locke Lord LLP
    Document created using EDGARfilings PROfile 4.1.0.0
    Copyright 1995 - 2016 Summit Financial Printing, LLC.  All rights reserved.-->
</head>
<body style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif" bgcolor="#ffffff" text="#000000">
<div>
<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0px">
<hr style="BORDER-TOP: black 4px solid; HEIGHT: 10px; BORDER-BOTTOM: black 1px solid; COLOR: #ffffff; TEXT-ALIGN: center; MARGIN-LEFT: auto; BACKGROUND-COLOR: #ffffff; MARGIN-RIGHT: auto" align="center">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 360pt">&#160;</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 360pt">Exhibit 23.1</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">Consent of Independent Registered Public Accounting Firm</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-196529) pertaining to the NOW Inc. 401(k) and Retirement Savings Plan of our report dated June 27, 2016, with respect to the financial statements and schedule of the NOW Inc. 401(k) and Retirement Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 2015.</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 252pt"><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;</font>&#160;</font>/s/ Ernst &amp; Young LLP</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">Houston, Texas</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: normal">June 27, 2016</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
