<SEC-DOCUMENT>0001193125-12-395507.txt : 20120918
<SEC-HEADER>0001193125-12-395507.hdr.sgml : 20120918
<ACCEPTANCE-DATETIME>20120918164855
ACCESSION NUMBER:		0001193125-12-395507
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120912
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120918
DATE AS OF CHANGE:		20120918

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FLOTEK INDUSTRIES INC/CN/
		CENTRAL INDEX KEY:			0000928054
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS CHEMICAL PRODUCTS [2890]
		IRS NUMBER:				900023731
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13270
		FILM NUMBER:		121097646

	BUSINESS ADDRESS:	
		STREET 1:		2930 W. SAM HOUSTON PARKWAY N
		STREET 2:		SUITE 300
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77043
		BUSINESS PHONE:		7138499911

	MAIL ADDRESS:	
		STREET 1:		2930 W. SAM HOUSTON PARKWAY N
		STREET 2:		SUITE 300
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77043
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d413089d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
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 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
<P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:4px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>Washington, D.C. 20549 </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>FORM 8-K
</B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="4"><B>CURRENT REPORT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>Pursuant to Section&nbsp;13 or 15(d) of the </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>Securities Exchange Act of
1934 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>Date of Report (Date of earliest event reported): September&nbsp;12, 2012 </B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="6"><B>Flotek Industries, Inc. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>(Exact name of registrant as specified in its charter) </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Delaware</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>001-13270</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>90-0023731</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(State or other jurisdiction</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>of incorporation)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Commission</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>File Number)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(IRS Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>Identification No.)</B></FONT></P></TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2930 W. Sam Houston Pkwy N., Suite 300</B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Houston, Texas</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>77043</B></FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Address of principal executive offices)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Registrant&#146;s telephone number, including area code: (713)&nbsp;849-9911 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B>NOT APPLICABLE </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>(Former name or former address, if changed since last report.) </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE>
<P STYLE="font-size:4px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
<P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;5.02</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
</B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Effective September&nbsp;12, 2012, Mr.&nbsp;Jesse&nbsp;E. Neyman retired as Executive Vice
President, Finance for Flotek Industries, Inc. (the &#147;<U>Company</U>&#148;) and as an officer and director for each subsidiary of the Company. Also on September&nbsp;12, 2012, the Company and Mr.&nbsp;Neyman entered into a Retirement Agreement
(the &#147;<U>Agreement</U>&#148;) that sets forth their mutual agreement as to the terms and conditions of Mr.&nbsp;Neyman&#146;s retirement and supersedes Mr.&nbsp;Neyman&#146;s existing employment agreement with the Company (subject to the
continuing effectiveness of certain provisions as detailed below). Below is a description of the material terms of the Agreement. The description below is qualified in its entirety by reference to the Agreement, which is filed as Exhibit 10.1 to
this Form 8-K and is incorporated herein by reference. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the Agreement, Mr.&nbsp;Neyman will remain
an employee of the Company until November&nbsp;30, 2013, performing such duties as requested by the Chief Executive Officer of the Company. Upon the effectiveness of a release entered into between Mr.&nbsp;Neyman and the Company within 21 days of
the Agreement, Mr.&nbsp;Neyman will receive a cash payment in the amount of $220,000. During Mr.&nbsp;Neyman&#146;s continued employment with the Company, he will receive a monthly salary of $36,600 until November&nbsp;30, 2013, (which employment
may be terminated &#147;for Cause&#148;). Upon the effectiveness of a second release executed after November&nbsp;30, 2013, Mr.&nbsp;Neyman will receive an additional cash payment in the amount of $110,000 and a cash payment in the amount of
$200,000 on March&nbsp;31, 2015. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company has agreed to continue health, dental and vision insurance
coverage for Mr.&nbsp;Neyman and his eligible dependents until November&nbsp;30, 2013, and to cover the expense of Mr.&nbsp;Neyman&#146;s COBRA coverage for the greater of 24 months thereafter or the maximum period provided for under COBRA. All
unvested stock options and restricted stock awards made to Mr.&nbsp;Neyman shall continue to vest by their terms until November&nbsp;30, 2013, with all such awards vesting on the earlier of November&nbsp;30, 2013, or Mr.&nbsp;Neyman&#146;s death or
disability (provided that certain of such awards whose vesting is conditioned on the achievement of target goals will remain so conditioned). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;Neyman has agreed to cooperate with the Company and has acknowledged that the confidentiality, non-competition and non-interference provisions of his employment agreement remain in effect.
Mr.&nbsp;Neyman has agreed to release the Company from all claims and liabilities he may have had against the Company as of the date of the Agreement and to enter into a subsequent release of claim and liabilities after November&nbsp;30, 2013.
</FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;9.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Financial Statements and Exhibits. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(d) Exhibits. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:55pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Exhibit&nbsp;Number</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Description</B></FONT></P></TD></TR>


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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Retirement Agreement dated September&nbsp;12, 2012.</FONT></TD></TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">FLOTEK INDUSTRIES, INC.</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Date: September&nbsp;18, 2012</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Johnna D. Kokenge</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Johnna D. Kokenge</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Vice President and Chief Accounting Officer</FONT></TD></TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>EXHIBIT INDEX </B></FONT></P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1px solid #000000;width:55pt" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Exhibit&nbsp;Number</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Description</B></FONT></P></TD></TR>


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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Retirement Agreement dated September&nbsp;12, 2012.</FONT></TD></TR>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d413089dex101.htm
<DESCRIPTION>RETIREMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Retirement Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>RETIREMENT AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:0px;"><FONT STYLE="font-family:Times New Roman" SIZE="2">This Retirement Agreement
(&#147;Agreement&#148;) is entered into on September&nbsp;12, 2012 to be effective as of the 31</FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">st</SUP></FONT><FONT
STYLE="font-family:Times New Roman" SIZE="2"> day of August, 2012 (&#147;Agreement Date&#148;), by and between Jesse E. Neyman, an individual (&#147;Neyman&#148; or &#147;Employee&#148;), and Flotek Industries, Inc., a Delaware corporation (the
&#147;Company&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Neyman is the Executive Vice President, Finance of the Company; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Neyman has rendered good and valuable services to the Company, and has played a crucial role in the growth and success of the
Company; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, the Company and Neyman are parties to that certain Employment Agreement dated August&nbsp;11, 2009 (the
&#147;Employment Agreement&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Neyman and the Company have concluded that it is in their mutual best interests
to enter into agreements concerning the transition of Neyman&#146;s duties; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which is hereby expressly acknowledged, the undersigned parties agree as follows: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1. <U>Transition of Duties</U>. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(a) Effective as of September&nbsp;12, 2012, Neyman hereby resigns as the Executive Vice President, Finance of the Company, and as an officer and director of each subsidiary of the Company as well as from
his position as a trustee of any plan of the Company, effective as of the date of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(b) Subject to Sections
2(g) and 2(h), Neyman will continue as an employee of the Company from September&nbsp;1, 2012 through November&nbsp;30, 2013 (the &#147;Employment Term&#148;). Subject to Sections 2(g) and 2(h) or Neyman&#146;s death or Employment Disability, there
shall be no cessation or interruption of Neyman&#146;s employment with the Company until November&nbsp;30, 2013. During the Employment Term: so long as he is an employee of the Company, he will only perform the duties requested by the Chief
Executive Officer of the Company, provided that </FONT></P>

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such duties shall not exceed in scope those duties customarily performed by the Executive Vice President, Finance of the Company, and provided further that such duties shall be performed in a
manner which strictly conforms to all policies, procedures and directives of the Board of Directors of the Company. The Employment Term shall terminate prior to November&nbsp;30, 2013 upon the earlier death of Neyman, or the Employment Disability of
Neyman, or as provided pursuant to Sections 2(g) or 2(h). For purposes herein, &#147;Employment Disability&#148; means Neyman being subject to a physical or mental illness or condition that qualifies him to receive disability insurance benefits
pursuant to Company disability insurance policies for eight (8)&nbsp;or more consecutive weeks. The date of any termination of the Employment Term prior to November&nbsp;30, 2013, because of the death or Employment Disability of Neyman is referred
to herein as an &#147;Early Termination Date.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">2. <U>Compensation and Benefits</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">a) Neyman shall receive a cash payment in the amount of $220,000 on September&nbsp;12, 2012, and shall, pursuant to the Company&#146;s
payroll practices, receive payment for his current salary pursuant to the Employment Agreement through August&nbsp;31, 2012. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">b) Subject to Sections 2(g) and 2(h), Neyman shall receive a monthly salary of $36,600 throughout the Employment Term in accordance with
the payroll policies and practices of the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">c) Subject to Sections 2(g) and 2(h), within 5 days of the Subsequent
Release Date (as hereinafter defined), Neyman will receive a one-time cash payment of $110,000. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">d) Subject to Sections 2(g)
and 2(h), Neyman shall be paid $200,000 in cash in a lump sum by the Company on March&nbsp;31, 2015. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">e) Neyman will continue to be entitled to and will continue to receive the benefits
generally available to the employees of the Company and their spouses throughout the Employment Term, provided, however, that Neyman shall not be entitled to participate in any bonus plan of the Company which is applicable to the Employment Term.
Neyman&#146;s spouse shall remain covered by the medical, dental and vision plans of the Company during the Employment Term. At the expiration of the Employment Term, Neyman and his spouse shall no longer be entitled to coverage under any employee
benefit plan of the Company. At that time, Neyman and his spouse shall both be covered by continuing insurance coverage available under the Consolidated Omnibus Budget Reconciliation Act of 1985 (&#147;COBRA&#148;) and the terms of coverage pursuant
to such plan. Coverage of Neyman and his spouse pursuant to COBRA shall be at the Company&#146;s expense during the 24 month period subsequent to the Employment Term, or, during the maximum time period permitted under COBRA, if that period is
shorter. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">f) All payments to Neyman shall be subject to withholding of employment, FICA, and other taxes as required by law.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">g) The obligation of the Company to pay compensation pursuant to Section&nbsp;2(a), Section&nbsp;2(b), Section&nbsp;2(c), and
Section&nbsp;2(d), the employment of Neyman pursuant to Section&nbsp;1(b), the vesting of Non-Vested Options and Non-Vested Shares pursuant to Section&nbsp;3, shall all be conditioned on both of the following conditions being satisfied:
(i)&nbsp;Neyman (or, if he is deceased or does not have legal capacity, his legally empowered personal representative) delivering to the Company a release agreement identical in form to Exhibit A within 21 days of the date of this Agreement (the
&#147;Age Discrimination Release&#148;), and (ii)&nbsp;the 7 day time period during which Neyman has the right to revoke the Age Discrimination Release pursuant to the terms thereof expiring without Neyman having exercised such revocation right. The
obligation of the Company to pay compensation pursuant to Section&nbsp;2(c) and Section&nbsp;2(d) shall be additionally conditioned on Neyman (or, if he is deceased or does not have legal capacity, his legally empowered personal representative),
delivering to the Company a release agreement identical in form to Exhibit B (the &#147;Subsequent Period Release&#148;) during the period beginning on November&nbsp;30, 2013, and ending on December&nbsp;31, 2013 (with such period extended as
required to reasonably permit the appointment of a personal representative if Neyman has died or become legally incapacitated), and </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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Neyman or such representative not revoking the Subsequent Period Release within the 7 day revocation period provided for therein. The date upon which such 7 day revocation period has expired is
referred to herein as the &#147;Subsequent Release Date.&#148; The Company shall execute and deliver the Age Discrimination Release and the Subsequent Period Release to Neyman promptly upon the execution and delivery of such release by Neyman to the
Company pursuant to the terms thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(h) The Company shall have the right to terminate the Employment Term for
&#147;Cause.&#148; For purposes hereof, the term &#147;Cause&#148; means (i)&nbsp;Neyman&#146;s refusal or failure to comply with the reasonable and legal directives of the Board of Directors after written notice from the Board describing
Neyman&#146;s failure to comply and Neyman&#146;s failure to remedy same within thirty (30)&nbsp;days of receiving written notice of such failure, (ii)&nbsp;any act of personal dishonesty, fraud or misrepresentation taken by Neyman which was
intended to result in gain or personal enrichment of the Neyman at the expense of the Company; or (iii)&nbsp;Neyman&#146;s conviction of, or plea of <I>nolo contendere</I> or guilty to, a felony under the laws of the United States or any State that
is reasonably likely to be materially injurious to the Company. The termination of the Employment Term prior to November&nbsp;30, 2013 for Cause pursuant to the terms of this Section&nbsp;2(h) shall result in the obligation of the Company to pay
compensation pursuant to Section&nbsp;2(b) Section&nbsp;2(c), and Section&nbsp;2(d), to terminate immediately as of the date of termination for Cause. For clarity, the termination of the Employment Term because of the death or Employment Disability
of Neyman shall not be considered a termination for Cause. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(i) If the Employment Term terminates because of the death or
Employment Disability of Neyman, Neyman (or his heirs or personal representative) shall nevertheless be entitled to receive the compensation provided for pursuant to Sections 2(a), (b)&nbsp;(c), and (d), and his spouse shall continue to receive the
benefits of Section&nbsp;2(e) without any obligation to thereafter provide services. In the event of Employment Disability of Neyman, he and his spouse shall also continue to receive through November&nbsp;30, 2013 the medical, dental and vision
coverage of the Company and from December&nbsp;1, 2013 and thereafter, he and his spouse shall receive the COBRA coverage at Company expense as provided in Section&nbsp;2(e) without any obligation to thereafter provide services. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>3. Equity Awards</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(a) Neyman and the Company agree that the grant to Neyman of the options to acquire shares of the stock of the Company and the shares of
Restricted Stock described on Schedule C as &#147;Vested Options&#148; or &#147;Vested Shares&#148; are &#147;vested&#148; as of the date hereof and shall be exercisable by Neyman pursuant to the terms of the respective incentive compensation
grants, and the applicable incentive compensation plans. Neyman and the Company agree that (i)&nbsp;the currently non-vested options to acquire shares of stock of the Company and the non-vested restricted shares listed in Schedule C as
&#147;Non-Vested Options&#148; and &#147;Non-Vested Shares respectively are not vested as of the date hereof, and (ii)&nbsp;the Non-Vested Options and the Non-Vested Shares shall not be considered to have been terminated by reason of the execution
and delivery of this Agreement and shall thus continue to be subject to vesting through the remainder of the Employment Term as provided pursuant to the terms of the respective incentive compensation grants and the applicable incentive compensation
plans of the Company. Subject to Section&nbsp;2(g) and (h), Neyman and the Company agree that all of the Non-Vested Options and Non-Vested Shares shall be considered vested and not subject to any obligation on the part of Neyman to provide any
additional services to avoid forfeiture as of the earlier of November&nbsp;30, 2013 or the Early Termination Date, provided that (i)&nbsp;the Goal Grant (as defined in Exhibit C) shall be considered vested only if the &#147;Goal&#148; is achieved
for 2012 and (ii)&nbsp;the MIP Grant (as defined in Exhibit C) shall be considered vested only upon the achievement of the 2012 EBITDA required pursuant to the terms of the MIP (as hereinafter defined). </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(b) The terms of this Agreement shall not affect in any respect the rights of Neyman with respect to contributions previously made by or
with respect to Neyman pursuant to the Section&nbsp;401(k) Plan of the Company, which shall be governed by the terms of such plan. Neyman shall be entitled, in accordance with the Section&nbsp;401(k) Plan of the Company, to participate in any
contributions made by the Company to its Section&nbsp;401(k) Plan with respect to its Employees for the years 2012 and until November&nbsp;30, 2013, but not otherwise. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>4. Releases</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(a) In consideration for the Company&#146;s promises in this Agreement, including the promise to pay compensation to Neyman pursuant to
the terms hereof, Neyman, on behalf of himself and his heirs, executors, administrators, successors, assigns, and any other person claiming by, through, or under him, voluntarily and knowingly waives, releases and discharges the Company, its
subsidiaries and their direct and indirect affiliates, and their past, present, and future respective successors, assigns, divisions, representatives, agents, officers, directors, stockholders, contractors, and attorneys (and their attorneys,
employees, agents, and contractors) from any claims, demands and/or causes of action whatsoever, presently known or unknown, that are based upon facts occurring on or prior to the date of this Agreement, including but not limited to, the following:
(a)&nbsp;any claims under the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Civil Rights Acts of 1964 and 1991, the Employee Retirement Income Security Act (all as amended), or other U.S. (federal, state or
local) or international laws, (b)&nbsp;any tort or contract claims, (c)&nbsp;any claims for any type of compensation or severance payment, except as set forth in this Agreement, (d)&nbsp;any claims for options or rights to acquire stock or the
issuance or right to retain of restricted stock, except as set forth in this Agreement, (e)&nbsp;any claims, matters or actions related to Neyman&#146;s employment and/or affiliation with, or resignation from the Company, and any facts or
circumstance relating to the negotiation of this Agreement, (f)&nbsp;any claim relating to the 2012 Management Incentive Plan (the &#147;MIP&#148;) or 2012 Performance Unit Plan of the Company except for the 6634 RSA&#146;s of Grant 185 and the
7,165 RSA&#146;s of Grant 310, which are preserved, and/or (g)&nbsp;any claims with regard to or obligations arising pursuant to the Employment Agreement, unless expressly preserved in this Agreement. However, Neyman does not release or waive and
expressly preserves all his rights: (i)&nbsp;under this Agreement or its Exhibits, (ii)&nbsp;all his rights to enforce this Agreement and the Company&#146;s obligation thereunder, (iii)&nbsp;the obligations of the Company for salary owed through
August&nbsp;31, 2012, (iv)&nbsp;Employee&#146;s rights to indemnity, contribution and a defense with respect to any Company related claim under any statute, agreement or Company governance document such as a by-law or its Certificate of
Incorporation, (v)&nbsp;any coverage and right to payment of health care </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6 </FONT></P>


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costs under the health, medical, dental and vision plans of the Company, (vi)&nbsp;any business or travel expenses required to be reimbursed pursuant to the Company&#146;s policies and practices,
(vii)&nbsp;the terms of any applicable general liability, fiduciary, and directors and officers insurance coverage, (viii)&nbsp;his rights as a shareholder, and (x)&nbsp;his rights, if any, to payment of accrued but unused vacation. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>5. No Assignment of Claims</U>. Neyman represents and warrants to the Company that he has not made any assignment and will make no
assignment of any of the claims which are purported to be released and discharged by this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>6. Covenants</U>.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(a) On or before the expiration of the Employment Term, Neyman agrees to return to the Company all of the Company&#146;s
property in his possession including, but not limited to, financial statements, accounting statements, bank account information, customer information, automobile and all of the tangible and intangible property belonging to the Company and relating
to his employment with the Company. Neyman further represents and warrants that he will not retain any copies, electronic or otherwise, of such property. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(b) Neyman agrees to cooperate fully with the Company in its defense of or other participation in any administrative, judicial or other proceeding arising from any charge, complaint or other action which
has been or may be filed against the Company. Neyman shall be reimbursed for any reasonable out of pocket expenses incurred by him in the performance of his obligations pursuant to this Section&nbsp;6(b). After November&nbsp;30, 2013,Neyman shall be
paid for his time fulfilling this obligation at an hourly rate equivalent to his last base salary while employed by the Company. This cooperation shall be upon reasonable notice and shall not unduly interfere with his subsequent a vocational,
vocational or enterprise activities. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(c) The parties acknowledge that the Company is currently subject to certain obligations to
indemnify and defend Neyman pursuant to Article VI of the Bylaws of the Company as provided therein. The Company hereby covenants that it will indemnify Neyman as provided in such Article VI as currently in force with respect to claims arising from
the services of Neyman as an officer, director, and employee of the Company and its subsidiaries prior to the date hereof or subsequent to the date hereof pursuant to Section&nbsp;1, regardless of whether such Article is hereafter amended or
revoked. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>7. Confidentiality, Covenant Not To Compete, and Non-Interference</U>. Neyman acknowledged that he remains
subject to the obligations of Sections, 6, 7, 8, 9, and 11 of the Employment Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>8. Facilities</U>. If so directed
by the Board of Directors of the Company, Neyman will perform his duties to the Company as an employee of the Company or as otherwise provided herein at a physical office location separate from the corporate offices of the Company and will not keep
an office at any of the Company facilities. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>9. Governing Law</U>. The execution, validity, interpretation and performance
of this Agreement shall be determined and governed exclusively by the laws of the State of Texas, without reference to the principles of conflict of laws. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>10. Entire Agreement</U>. This Agreement represents the complete agreement among Neyman and the Company concerning the subject matter hereof and supersedes all prior agreements or understandings,
written or oral, between Neyman and the Company concerning the subject matter of this Agreement. No attempted modification or waiver of any of the provisions of this Agreement shall be binding on any party hereto unless in writing and signed by
Neyman and the Company. This Agreement is binding upon and inures to the benefit of the parties&#146; heirs, successors and permitted assigns. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>11. Acknowledgements</U>. This Agreement has been entered into voluntarily and not as a result of coercion, duress or undue influence. Neyman acknowledges that he has read and fully understands the
terms of this Agreement and has been advised that he should consult with an attorney before executing this Agreement, and has in fact consulted with an attorney with respect to this Agreement. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">8 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>12. Dispute Resolution</U>. Any and all disputes between the parties to this Agreement
arising out of or in connection with the negotiation, execution, interpretation, performance or non-performance of this Agreement and the covenants and obligations contemplated herein, including but not limited to any claims against Neyman, the
Company, its respective officers, directors, employees or agents, shall be solely and finally settled by arbitration conducted in Houston, Texas pursuant to the Employment Rules of the American Arbitration Association (&#147;AAA&#148;), as now in
effect or hereafter amended. Judgment on the award of the arbitrator may be entered in any court having jurisdiction over the party against whom enforcement of the award is being sought, and the parties hereby irrevocably consent to the jurisdiction
of any such court for the purpose of enforcing any such award. The parties agree and acknowledge that any arbitration proceedings between them, and the outcome of such proceedings, shall be kept strictly confidential. The fees, charges, and expenses
incurred with AAA and its arbitrators shall be divided equally between the parties. In the event of any such dispute concerning the subject matter of this Agreement, the prevailing party shall be entitled to recover reasonable attorney&#146;s fees
and costs of litigation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>13. Execution</U>. This Agreement may be executed in counterparts, each of which will be deemed
an original and shall be deemed duly executed upon the signing of the counterparts by the parties. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>14. Cross References,
Presumption</U>. The words &#147;hereof,&#148; &#147;herein&#148; and &#147;hereunder&#148; and words of similar impact when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement, and
article, section, schedule and exhibit references are to this Agreement unless otherwise specified. No consideration shall be given to the fact or presumption that one party had a greater or lesser hand in drafting this Agreement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>15. Notices. </U>Notices pursuant to this Agreement may not be sent by email or other electronic means. All notices, consents, waivers
and other communications required or permitted by this Agreement shall be in writing and shall be deemed given to a party when (a)&nbsp;delivered to the appropriate address by hand or by </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">9 </FONT></P>


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nationally recognized overnight courier service (costs prepaid); (b)&nbsp;sent by facsimile with confirmation of transmission by the transmitting equipment; or (c)&nbsp;received or rejected by
the addressee, if sent by certified mail, return receipt requested, in each case to the following addresses, facsimile numbers and marked to the attention of the person (by name or title) designated below (or to such other address, facsimile number,
or person as a party may designate by notice to the other parties): </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Flotek Industries, Inc. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">2930 W. Sam Houston Pkwy. N., Suite 300 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Houston, TX 77043 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Fax No.: 713-896-4511 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">with a mandatory copy to: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Casey W. Doherty </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Doherty&nbsp;&amp; Doherty LLP </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">1717 St. James Place, Ste. 520 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Houston, TX 77056 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Fax No.: 713-572-1001 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Neyman: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jesse E. Neyman </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"></FONT><FONT STYLE="font-family:Times New Roman;background-color:#000000" SIZE="2">16310 Brook Forest Drive</FONT><FONT
STYLE="font-family:Times New Roman" SIZE="2"> </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"></FONT><FONT STYLE="font-family:Times New Roman;background-color:#000000" SIZE="2">Houston, Texas 77059</FONT><FONT
STYLE="font-family:Times New Roman" SIZE="2"> </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"></FONT><FONT STYLE="font-family:Times New Roman;background-color:#000000" SIZE="2">Fax No.&nbsp;281 488 3809</FONT><FONT
STYLE="font-family:Times New Roman" SIZE="2"> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">with a mandatory copy to: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Eliot P. Tucker and Roy Barnes </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">712 Main St. Ste. 1600 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Houston, Texas 77002 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Fax No.&nbsp;713 228 7329 </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">10 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">16. <U>Fees Relating To This Agreement</U>. The Company shall pay the reasonable
attorney&#146;s fees incurred by Neyman in connection with the drafting and negotiation of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[SIGNATURE PAGE
FOLLOWS] </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The parties to this Agreement have executed this Agreement on the day and year first written above.
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Jesse E. Neyman</FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jesse E. Neyman</FONT></TD></TR>
</TABLE></DIV> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE">


<TR>
<TD WIDTH="13%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="86%"></TD></TR>


<TR>
<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>FLOTEK INDUSTRIES, INC.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ John W Chisholm</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">John W Chisholm</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">President and CEO</FONT></TD></TR>
</TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">12 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>EXHIBIT A</U> </B></FONT></P>
<P STYLE="margin-top:14px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>AGE DISCRIMINATION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>RELEASE AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">This Age Discrimination Release Agreement
(&#147;Release&#148;) is entered into on September &nbsp;&nbsp;&nbsp;&nbsp;, 2012 effective as of the August&nbsp;31, 2012 (the &#147;Release Date&#148;) by and between Jesse &#147;Jempy&#148; Neyman, an individual (&#147;Neyman&#148;), and Flotek
Industries, Inc., a Delaware corporation (the &#147;Company&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Neyman and the Company have entered into that
certain Retirement Agreement dated August&nbsp;31, 2012 (the &#147;Retirement Agreement&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Section&nbsp;2(g) of
the Retirement Agreement provides, among other things, that certain of the obligations of the Company to pay or provide compensation to Neyman pursuant to the Retirement Agreement are contingent on Neyman executing and delivering this Release within
21 days of the date of the Retirement Agreement; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Neyman, after consulting with counsel, has determined to execute
this Release in order to trigger certain of the obligations of the Company pursuant to the Retirement Agreement becoming effective; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged, the undersigned parties agree as follows: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1. <U>Release by Neyman.</U> In consideration for the obligation of the Company to pay compensation pursuant to Section&nbsp;2(a),
Section&nbsp;2(b) and Section&nbsp;2(c) and Section&nbsp;2(d) and Section&nbsp;2(e) of the Retirement Agreement, the continued employment of Neyman pursuant to Section&nbsp;1(b) of the Retirement Agreement, and the agreement of the Company with
respect to the vesting of Non-Vested Options and Non-Vested Shares pursuant to Section&nbsp;3 of the Retirement Agreement and its Schedule or Exhibit C, Neyman, on behalf of himself and his heirs, executors, administrators, successors, assigns, and
any other person claiming by, through, or under </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
him, voluntarily and knowingly waives, releases and discharges the Company, its subsidiaries and their direct and indirect affiliates, and their past, present, and future respective successors,
assigns, divisions, representatives, agents, officers, directors, stockholders, contractors, and attorneys (and their attorneys employees, agents, and contractors) from any claims, demands and/or causes of action whatsoever, presently known or
unknown, that are based upon facts occurring on or prior to the Release Date, including but not limited to any claims under the Age Discrimination in Employment Act of 1967, the Older Workers Benefits Protection Act of 1990, or any other statute
concerning age discrimination. Such release does not, however, reach the Company&#146;s obligations pursuant to the Retirement Agreement, none of which are released hereby but are hereby preserved. However, Neyman does not release or waive and
expressly preserves all his rights: (i)&nbsp;under the Retirement Agreement and its Exhibits, (ii)&nbsp;all his rights to enforce the Retirement Agreement and this Release and the Company&#146;s obligation thereunder, (iii)&nbsp;the obligations of
the Company for salary owed through August&nbsp;31, 2012, (iv)&nbsp;Employee&#146;s rights to indemnity, contribution and a defense with respect to any Company related claim under any statute, agreement or Company governance document such as a
by-law or its Certificate of Incorporation, (v)&nbsp;any coverage and right to payment of health care costs under the health, medical, dental and vision plans of the Company, (vi)&nbsp;any business or travel expenses required to be reimbursed
pursuant to the Company&#146;s policies and practices, (vii)&nbsp;the terms of any applicable general liability, fiduciary, and directors and officers insurance coverage, (viii)&nbsp;his rights as a shareholder, and (x)&nbsp;his rights, if any, to
payment of accrued but unused vacation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">2. <U>No Assignment</U>. Neyman represents and warrants to the Company that he has
not made any assignment and will make no assignment of any of the claims which are purported to be released and discharged by this Release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">3. <U>Governing Law</U>. The execution, validity, interpretation and performance of this Release shall be determined and governed exclusively by the laws of the State of Texas, without reference to the
principles of conflict of laws. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4. <U>Entire Agreement</U>. This Release represents the complete agreement among Neyman and
the Company concerning the subject matter hereof and supersedes all prior agreements or understandings, written or oral, between Neyman and the Company concerning the subject matter of this Release, except that the Release and in particular the
undertakings of Neyman set out in Section&nbsp;1 of the Release are in addition to and not in lieu of the obligations of Neyman set out in the Retirement Agreement. No attempted modification or waiver of any of the provisions of this Release shall
be binding on any party hereto unless in writing and signed by Neyman and the Company. This Release is binding upon and inures to the benefit of the parties&#146; heirs, successors and permitted assigns. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">5. <U>Acknowledgements</U>. This Release has been entered into voluntarily and not as a result of coercion, duress or undue influence.
Neyman acknowledges that he has read and fully understands the terms of this Release and has been and hereby is advised by the Company that he should consult with an attorney before executing this Release, and he has in fact consulted with an
attorney with respect to this Release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6. <U>Dispute Resolution</U>. Any and all disputes between the parties to this Release
arising out of or in connection with the negotiation, execution, interpretation, performance or non-performance of this Release and the covenants and obligations contemplated herein, including but not limited to any claims against Neyman, the
Company, or its officers, directors, employees or agents, shall be solely and finally settled pursuant to the arbitration provisions provided for in Section&nbsp;12 of the Retirement Agreement. Judgment on the award of the arbitrator may be entered
in any court having jurisdiction over the party against whom enforcement of the award is being sought, and the parties hereby irrevocably consent to the jurisdiction of any such court for the purpose of enforcing any such award. In the event of any
such dispute concerning the subject matter of this Release, the prevailing party shall be entitled to recover reasonable attorney&#146;s fees and costs of litigation, provided, however, that in any such action involving an allegation of age
discrimination in which the validity of this Release is challenged, the recovery of attorney&#146;s fees shall be governed only by applicable law. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">7. <U>Execution</U>. This Release may be executed in counterparts, each of which will be
deemed an original and shall be deemed duly executed upon the signing of the counterparts by the parties. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">8. <U>Revocation
Right</U>. Neyman is entitled to revoke his agreement to the terms of this Release within 7 days of the Release Date (the &#147;7 Day Period&#148;). The terms of this Release shall only become effective if Neyman does not revoke his agreement to be
bound by this Release within the 7 Day Period. In addition, Neyman understands that pursuant to the terms of the Retirement Agreement he has been provided the opportunity for 21 days from the date of receipt of the Retirement Agreement to review and
consider this Release and to make his decision whether to agree to and execute this Release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The parties to this Release have
executed this Release on the day and year first written above. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="99%"></TD></TR>


<TR>
<TD VALIGN="top" COLSPAN="3" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jesse &#147;Jempy&#148; Neyman</FONT></TD></TR>
</TABLE></DIV> <P STYLE="font-size:24px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE">


<TR>
<TD WIDTH="13%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="86%"></TD></TR>


<TR>
<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>FLOTEK INDUSTRIES, INC.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">BY:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
</TABLE>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>EXHIBIT B </U></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>SUBSEQUENT PERIOD </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>RELEASE AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">This Subsequent Period Release Agreement
(&#147;Release&#148;) is entered into as of the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; day of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
201&nbsp;&nbsp;&nbsp;&nbsp; (the &#147;Release Date&#148;) by and between Jesse &#147;Jempy&#148; Neyman, an individual (&#147;Neyman&#148;), and Flotek Industries, Inc., a Delaware corporation (the &#147;Company&#148;). </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Neyman and the Company have entered into that certain Retirement Agreement dated August&nbsp;31, 2012 (the &#147;Retirement
Agreement&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, the Retirement Agreement provides, among other things, for (i)&nbsp;the continuing employment of
Neyman by the Company during the period beginning on September&nbsp;1, 2012 and ending on November&nbsp;30, 2013, subject to termination for &#147;Cause&#148; pursuant to Section&nbsp;2(h) of the Retirement Agreement, (ii)&nbsp;the payment by the
Company to Neyman of $110,000 pursuant to Section&nbsp;2(c) and payment by the Company to Neyman of $200,000 on March&nbsp;31, 2015 pursuant to Section&nbsp;2(d) of the Retirement Agreement provided that (a)&nbsp;the employment of Neyman has not
been previously terminated for &#147;Cause&#148; pursuant to Section&nbsp;2(h) of the Retirement Agreement, (b)&nbsp;Neyman or his personal representative executes and delivers this Release to the Company in compliance with Section&nbsp;2(g) of the
Retirement Agreement, and (iii)&nbsp;the execution and delivery of this Release by the Company to Neyman if Neyman executes and delivers this Release to the Company in compliance with the terms of the Retirement Agreement and does not revoke it;
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, the employment of Neyman by the Company has not been terminated for &#147;Cause&#148; prior to November&nbsp;30,
2013, and accordingly Neyman and the Company are executing and delivering this Release pursuant to the Retirement Agreement; </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby expressly acknowledged, the undersigned parties agree as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1. <U>Release by Neyman.</U> In consideration for
the Company&#146;s payment to Neyman or his heirs of $110,000 pursuant to Section&nbsp;2(c) of the Retirement Agreement and the Company&#146;s promise pursuant to Section&nbsp;2(d) to pay to Neyman $200,000 on March&nbsp;31, 2015,, Neyman or his
personal representative, on behalf of himself and his heirs, executors, administrators, successors, assigns, and any other persons claiming by, through, or under him, voluntarily and knowingly waive, release and discharge the Company, its
subsidiaries and their direct and indirect affiliates, and their past, present, and future respective successors, assigns, divisions, representatives, agents, officers, directors, stockholders, contractors, and attorneys (and their attorneys
employees, agents, and contractors) from any claims, demands and/or causes of action whatsoever, presently known or unknown, that are based upon facts occurring on or prior to the Release Date, including but not limited to, the following:
(a)&nbsp;any claims under the Age Discrimination in Employment Act of 1967, the Older Workers Benefits Protection Act of 1990, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Civil Rights Acts of 1964 and
1991, the Employee Retirement Income Security Act (all as amended), or other U.S. (federal, state or local) or international laws, (b)&nbsp;any tort or contract claims, (c)&nbsp;any claims for any type of compensation or severance payment, except as
set forth in this Agreement, (d)&nbsp;any claims for options or rights to acquire stock or the issuance or right to retain of restricted stock, except as set forth in the Retirement Agreement, and/or (e)&nbsp;any claims, matters or actions related
to Neyman&#146;s employment and/or affiliation with, or resignation from, the Company, and any facts or circumstance relating to the negotiation of this Release or the Retirement Agreement. Such release does not, however, reach the Company&#146;s
obligations pursuant to the Retirement Agreement, none of which are released hereby but are hereby preserved. Furthermore Neyman (or his personal representative) does not release or waive and expressly preserves all his rights: (i)&nbsp;under the
Retirement Agreement and its Exhibits and this Release, (ii)&nbsp;all his rights to enforce the Retirement Agreement and the Company&#146;s obligations thereunder, (iii)&nbsp;the obligations of the Company for salary owed through August&nbsp;31,
2012, (iv)&nbsp;Employee&#146;s rights to indemnity, contribution and a defense with respect to any Company related claim under any statute, agreement or Company governance </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">document such as a by-law or its Certificate of Incorporation, (v)&nbsp;any coverage and right to payment of
health care costs under the health, medical, dental and vision plans of the Company, (vi)&nbsp;any business or travel expenses required to be reimbursed pursuant to the Company&#146;s policies and practices, (vii)&nbsp;the terms of any applicable
general liability, fiduciary, and directors and officers insurance coverage, (viii)&nbsp;his rights as a shareholder, and (x)&nbsp;his rights, if any, to payment of accrued but unused vacation. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">2. <U>No Assignment. </U>Neyman represents and warrants to the Company that he has not made any assignment and will make no assignment of
any of the claims which are purported to be released and discharged by this Release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3. <U>Governing Law</U>. The execution,
validity, interpretation and performance of this Agreement shall be determined and governed exclusively by the laws of the State of Texas, without reference to the principles of conflict of laws. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4. <U>Entire Agreement</U>. This Release represents the complete agreement among Neyman and the Company concerning the subject matter
hereof and supersedes all prior agreements or understandings, written or oral, between Neyman and the Company concerning the subject matter of this Agreement, except that the Release and in particular the undertakings of Neyman set out in
Section&nbsp;1 of this Release are in addition to and not in lieu of the obligations set out in the Retirement Agreement and in the Age Discrimination Release (as defined in the Retirement Agreement), if the Age Discrimination Release has been
delivered by Neyman pursuant to the Retirement Agreement and not revoked pursuant to the terms thereof. No attempted modification or waiver of any of the provisions of this Release shall be binding on any party hereto unless in writing and signed by
Neyman and the Company. This Release is binding upon and inures to the benefit of the parties&#146; heirs, successors and permitted assigns. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">5. <U>Acknowledgements</U>. This Release has been entered into voluntarily and not as a result of coercion, duress or undue influence. Neyman acknowledges that he has read and fully understands the terms
of this Release and has been and is hereby advised by the Company that he should consult with an attorney before executing this Release, and has in fact consulted with an attorney with respect to this Release. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6. <U>Dispute Resolution</U>. Any and all disputes between the parties to this Agreement
arising out of or in connection with the negotiation, execution, interpretation, performance or non-performance of this Agreement and the covenants and obligations contemplated herein, including but not limited to any claims against Neyman, the
Company, its respective officers, directors, employees or agents, shall be solely and finally settled pursuant to the arbitration provisions provided for in Section&nbsp;12 of the Retirement Agreement. Judgment on the award of the arbitrator may be
entered in any court having jurisdiction over the party against whom enforcement of the award is being sought, and the parties hereby irrevocably consent to the jurisdiction of any such court for the purpose of enforcing any such award. In the event
of any such dispute concerning the subject matter of this Release, the prevailing party shall be entitled to recover reasonable attorney&#146;s fees and costs of litigation, provided, however, that in any such action involving an allegation of age
discrimination in which the validity of this Release is challenged, the recovery of attorney&#146;s fees shall be governed only by applicable law. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">7. <U>Execution</U>. This Release may be executed in counterparts, each of which will be deemed an original and shall be deemed duly executed upon the signing of the counterparts by the parties.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">8. <U>Revocation Right</U>. Neyman is entitled to revoke his agreement to the terms of this Release within 7 days of the
Release Date (the &#147;7 Day Period&#148;). The terms of this Release shall only become effective if Neyman does not revoke his agreement to be bound by this Release within the 7 Day Period. If Neyman revokes his agreement to be bound by the terms
of this Release within the 7 Day Period, then the Company will likewise have no obligation pursuant to this Release. In addition, Neyman understands that he has had at least 21 days from the date of receipt of the Retirement Agreement for the
purpose of reviewing and considering this Release and making his decision whether to agree to and execute this Release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The
parties to this Agreement have executed this Agreement on the day and year first written above. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="3" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jesse &#147;Jempy&#148; Neyman</FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>FLOTEK INDUSTRIES, INC.</B></FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">BY:</FONT></TD>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Name:</FONT></TD>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Title:</FONT></TD>
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 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>EXHIBIT C</U> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">TO RETIREMENT AGREEMENT </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">OF </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">FLOTEK INDUSTRIES, INC. AND JESSE E. NEYMAN </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Attached is the Flotek Industries, Inc. Participant Summary Report Date Range: 1/1/1900 -8/13/2012 (the &#147;Report&#148;). The parties to the Retirement Agreement have analyzed the vesting of each
option granted to Neyman and the exercisability of the options based on the Retirement Agreement and the result of such analysis is set forth in this Exhibit C with references to the numbering of such grants set forth on the Report. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>OPTIONS: </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 111 100,000 NQSOs. The
EBITDA goal was met. These options are not vested and are currently considered &#147;Non-Vested Options.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 29 150,000 ISOs. Three
fourths of these options are currently vested. Accordingly, 112,500 options are considered &#147;Vested Options&#148; and 37,500 options are currently considered &#147;Non-Vested Options.&#148; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 3 59,260 ISOs. Three fourths of these options are vested. 20,000 of these options have already been exercised and thus no longer exist. 24,445
options remain. 9,630 of those are vested now and are considered &#147;Vested Options&#148; and 14,815 are not and are currently considered &#147;Non-Vested Options.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Grant 56 3070 ISOs. The Report correctly refers to a grant of 3,070 ISOs, because there was a stock split. All are vested and are considered &#147;Vested Options.&#148; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 85 5,784 ISOs. All of these options are vested and are considered &#147;Vested Options.&#148; </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>RESTRICTED STOCK: </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 129 7,923
shares of Restricted Stock. These shares were issued pursuant to the 2011 MIP of the Company. The EBITDA goal was achieved. All shares are vested and are considered &#147;Vested Shares.&#148; </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 3 31,876 RSAs. Three fourths of these shares, 29,907, have vested and are considered &#147;Vested
Shares&#148;, and the rest (7969 shares) are not, and are currently considered &#147;Non-Vested Shares.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 310 7,165 RSAs. None of
these shares are vested and they are thus currently considered &#147;Non-Vested Shares.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 310-1 8,359 PSUs and Grant 310-2 8,358
PSUs. Neyman&#146;s rights with respect to these performance units have been and are hereby terminated. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grant 185 6,634 restricted shares.
This grant was pursuant to the terms of the 2012 MIP. These shares will vest if the goals of the MIP are met. They are currently considered &#147;Non Vested&#148; shares. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Grant 53 19,608 restricted shares. These shares were issued in lieu of 2008 cash bonuses and are &#147;Vested Shares.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Grant 119 3,386 shares of restricted stock were issued pursuant to the 2010 MIP of the Company. All of these share are vested and are thus considered &#147;Vested Shares.&#148; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Grants 39.1, 39.2, 39.3, and 39.4 2,200 shares of restricted stock were issued pursuant to a Restricted Stock Agreement dated March&nbsp;28, 2008. The
vesting of these shares was based among other things upon the achievement of the &#147;Goal&#148; as defined therein. 1,100 of these shares have been forfeited. 550 of these shares are vested and are considered &#147;Vested Shares.&#148; 550 shares
(the &#147;Goal Shares&#148;) are subject to vesting based among other things upon the achievement of the &#147;Goal&#148; for the year ending December&nbsp;31, 2012 and are thus currently considered &#147;Non-Vested Shares.&#148; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The parties have agreed that Neyman does not have any rights to receive any issuance of options or shares of stock from the Company, or other incentive
compensation, except as provided in this Schedule or Exhibit C. </FONT></P>
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