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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-K/A

(Amendment No. 1)





(Mark One)

|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012.



| ̈ | TRANSITION REPORTING PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------

FOR THE TRANSITION PERIOD FROM
 TO
.

COMMISSION FILE NO. 001-34490





SYNTROLEUM
CORPORATION

(Exact name of registrant as specified in its charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 73-1565725                          
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.)

5416 S. Yale Suite 400

Tulsa, Oklahoma 74135

(Address of principal executive offices) (Zip
Code)

Registrants telephone number, including area code: (918) 592-7900

Securities registered pursuant to Section 12(b) of the Act:

Warrants to Purchase Common Stock, par value $.01 per share

Securities Registered Pursuant to Section 12(g) of the Act:

Common
Stock, par value $.01 per share

and

Preferred Share Purchase Rights





Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes   ̈    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes   ̈    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
    Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every interactive data file required to be submitted and posted pursuant to Rule 405
of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes  x    No   ̈

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrants knowledge, in
definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.     ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of large accelerated filer, accelerated filer and small reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |   |  |                           |  |  
|----------------------- |  | - |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈ |  | Accelerated filer         |  | x
|                        |  |   | 
|Non-accelerated filer   |  |  ̈ |  | Smaller reporting company |  |  ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act).    Yes   ̈    No  x

At June 29, 2012, the aggregate market value of the registrants common stock held by non-affiliates of the registrant was approximately $58,204,000 based on the closing price of such stock on
such date of $0.68 per share (assuming solely for this purpose that all of the registrants directors, executive officers and 10 percent stockholders are its affiliates).

At March 1, 2013, the number of outstanding shares of the registrants common stock was 99,238,146.









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EXPLANATORY NOTE

Syntroleum Corporation (the Company) is filing this Amendment No. 1 (this Amendment) to the Companys Annual
Report on Form 10-K for the fiscal year ended December 31, 2012, originally filed with the Securities and Exchange Commission (the SEC) on March 15, 2013 (the Original Form 10-K), in response to comments received from
the staff of the SEC received by letter dated January 27, 2014 (the Comment Letter). In response to the Comment Letter, this Amendment amends the Original Form 10-K to provide additional disclosure regarding (i) revenue derived by the
Company from two customers in Part I  Item 1 (Business), (ii) risks associated with the Companys dependence on the two above-referenced customers in Part 1  Item 1A (Risk Factors), (iii) conditions impacting the operational status
of the Dynamic Fuels plant in Part II  Item 7 (Managements Discussion and Analysis of Financial Condition and Results of Operation), and (iv) recognition of deferred income and technical services revenue in Part II  Item 7
(Managements Discussion and Analysis of Financial Condition and Results of Operation). Also in response to the Comment Letter, this Amendment files as an exhibit the agreement described as Exhibit 10.46 to the Original Form 10-K, which was not
filed with the Original Form 10-K as originally filed. There have been no other changes to the Original Form 10-K.

Except as
set forth above and as specifically referenced herein, this Amendment reflects matters as they existed on the date that the Original Form 10-K was filed with the SEC, does not modify or update disclosures presented in the Original Form 10-K, and
does not reflect any event occurring after the date of the Original Form 10-K. Forward-looking statements made in the Original Form 10-K have not been revised to reflect events, results or developments that occurred, or facts that became known to
the Company, after the date of the Original Form 10-K, and such forward-looking statements should be read in conjunction with the Companys filings with the SEC subsequent to the Original Form 10-K, including any amendments to those filings.



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TABLE OF CONTENTS



|         |  |                                                                                                              |  |      |    | 
|-------- |  | ------------------------------------------------------------------------------------------------------------ |  | ---- | -- | 
|         |  |                                                                                                              |  | Page |   
|         |  | Part I                                                                                                       |  |      |    | 
|Item 1.  |  | Business                                                                                                     |  |      | 3  | 
|Item 1A. |  | Risk Factors                                                                                                 |  |      | 7  | 
|Item 1B. |  | Unresolved Staff Comments                                                                                    |  |      | 13 | 
|Item 2.  |  | Properties                                                                                                   |  |      | 13 | 
|Item 3.  |  | Legal Proceedings                                                                                            |  |      | 13 | 
|Item 4.  |  | Mine Safety Disclosures                                                                                      |  |      | 13 | 
|         |  |                                                                                                             
|         |  | Part II                                                                                                      |  |      |    | 
|         |  |                                                                                                             
|Item 5.  |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  |      | 14 | 
|Item 6.  |  | Selected Financial Data                                                                                      |  |      | 16 | 
|Item 7.  |  | Managements Discussion and Analysis of Financial Condition and Results of Operation                         |  |      | 16 | 
|Item 7A. |  | Quantitative and Qualitative Disclosures about Market Risk                                                   |  |      | 23 | 
|Item 8.  |  | Financial Statements and Supplementary Data                                                                  |  |      | 24 | 
|Item 9.  |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |  |      | 24 | 
|Item 9A. |  | Controls and Procedures                                                                                      |  |      | 24 | 
|Item 9B. |  | Other Information                                                                                            |  |      | 25 | 
|         |  |                                                                                                             
|         |  | Part III                                                                                                     |  |      |    | 
|         |  |                                                                                                             
|Item 10. |  | Directors, Executive Officers and Corporate Governance                                                       |  |      | 26 | 
|Item 11. |  | Executive Compensation                                                                                       |  |      | 29 | 
|Item 12. |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |  |      | 35 | 
|Item 13. |  | Certain Relationships and Related Transactions, and Director Independence                                    |  |      | 36 | 
|Item 14. |  | Principal Accountant Fees and Services                                                                       |  |      | 37 | 
|         |  |                                                                                                             
|         |  | Part IV                                                                                                      |  |      |    | 
|         |  |                                                                                                             
|Item 15. |  | Exhibits and Financial Statement Schedules                                                                   |  |      | 38 | 

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K includes forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, as well as historical facts. These forward-looking statements include statements relating to the Fischer-Tropsch (FT) process, Syntroleum® Process, Synfining® Process,
and related technologies including, gas-to-liquids (GTL), coal-to-liquids (CTL) and biomass-to-liquids (BTL), our renewable fuels
Bio-Synfining® Technology (hereinafter Technologies), plants based on these Technologies,
anticipated cost and schedule to design, construct and operate plants, expected production of fuel, obtaining required financing for these plants and other activities, the value and markets for products, testing, certification, characteristics and
use of plant products, the continued development of our Technologies, use of proceeds from our equity offerings, anticipated revenues, availability of catalyst, our support of and relationship with our licensees, and any other forward-looking
statements including future growth, cash needs, capital availability, operations, business plans and financial results. When used in this document, the words anticipate, believe, estimate, expect,
intend, may, plan, project, should and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations
reflected in these forward-looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward-looking statements. Syntroleum undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Important factors that could cause actual results to differ from these forward-looking
statements are described under Item 1A. Risk Factors in this Annual Report on Form 10-K.

As used in this Annual
Report on Form 10-K, the terms Syntroleum, we, our or us mean Syntroleum Corporation, a Delaware corporation, and its predecessors and subsidiaries, unless the context indicates otherwise.



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PART I

Item 1. Business

Overview

Syntroleum Corporation (the Company or
Syntroleum) began business as GTG, Inc. on November 15, 1984. On August 7, 1998 Syntroleum merged into SLH Company and became the surviving entity. The Company was later re-incorporated in Delaware on June 17, 1999. The
focus of the Company and subsidiaries is the commercialization of our Technologies to produce synthetic liquid hydrocarbons.

The Technologies consist of Fischer-Tropsch (FT) technology to convert syngas to FT wax, and hydroprocessing technology. Our hydro-processing technology can be utilized either for conversion
of FT wax (Synfining®) or fats oils and greases
(Bio-Synfining®) into naphtha, diesel and liquefied petroleum gases (LPG). We are currently commercializing our
FT coal-to-liquids or (CTL) technology via China Petroleum and Chemical Corporation (Sinopec) and our Bio-Synfining® technology through the Dynamic Fuels, LLC joint venture.

The Companys revenue is derived from significant customers. Two customers, Dynamic Fuels and Sasol Technology (Pty) Ltd. (Sasol), made up 97% of revenue in 2012 and 99% of revenue in
2011, while three customers made up 93% of revenue in 2010.

Bio-Synfining® ProjectsDynamic Fuels

On June 22, 2007, we entered into definitive agreements with Tyson Foods, Inc. (Tyson) to form a
joint venture, Dynamic Fuels, LLC, a Delaware limited liability company (Dynamic Fuels), to construct and operate facilities in the United States using our Bio-Synfining® technology. The first facility began commercial operations in November 2010. The facility produces renewable diesel fuel that meets ASTM D975 standards, the same
standards as conventional petroleum diesel. Renewable diesel fuel can be used in existing infrastructure and engines and be blended with petroleum diesel. We can also produce ASTM D7566, commercial jet fuel, as well as HRJ-5, military jet fuel.
Dynamic Fuels has sold ASTM D7566 and HRJ-5 for commercial and military aviation. The plant also produces naphtha and propane.

In 2012, Dynamic Fuels delivered 450,000 gallons of renewable fuels to the U.S. Navy which included 100,000 gallons of jet fuel, HRJ-5
and 350,000 gallons of marine distillate fuel. The fuel was used in demonstration testing in the Navys efforts to develop a Green Strike Group composed of vessels and ships powered by biofuel. This represents the single largest
purchase of biofuel in government history, as reported by the Navy and USDA.

The renewable fuels industry benefits from
economic incentives to produce biomass based diesel. The American Jobs Creation Act of 2004, the Energy Policy Act of 2005, or EPAct, and the Energy Independence and Security Act of 2007, or EISA, are the primary pieces of federal legislation that
have established the groundwork for renewable fuels market development.

In August 2005, the EPAct established a Renewable
Fuel Standard program, or RFS, requiring a specific amount of renewable fuel to be used in motor vehicle fuel nationwide. This requirement has been delegated to refiners and importers in the 48 contiguous states. Beginning in 2008, EISA amended the
EPAct to increase the number of gallons of renewable fuel required to be used in motor vehicle fuel nationwide.

On
July 1, 2010, an updated Renewable Fuel Standard program, or RFS2, was implemented. RFS2 requires certain volume minimums for the amount of biomass-based diesel that must be utilized each year. Under the program, obligated parties, including
petroleum refiners and fuel importers, must show compliance with these standards. Currently, Dynamic Fuels renewable diesel meets two categories of an obligated partys required volume obligationbiomass-based diesel and advanced
biofuel. Consistent with the RFS program, the Environmental Protection Agency, or EPA, announced it would require the domestic use of 800 million gallons of renewable or biodiesel in 2011, one billion gallons in 2012 and 1.28 billion in 2013.

Our renewable diesel fuel generates 1.7 D4 RINs per gallon. At December 31, 2012, D4 RIN prices were $0.64 per
gallon. As of January 31, 2013, D4 RIN prices were $0.52 per gallon. During 2012, Dynamic Fuels received EPA Part 79, which allows its naphtha to be blended up to 10% in gasoline motor vehicle fuel and also registered the naphtha it produces
with the EPA for D Code 5 RINs. D5 RINS were $0.55 at December 31, 2012 and were $0.49 on January 31, 2013. Dynamic Fuels can generate D Code 5 RINS for its naphtha if it is blended with gasoline and if the feedstock utilized does not
include inedible corn oil produced by corn ethanol plants. While inedible corn oil is an approved feedstock for renewable diesel, it is not for renewable naphtha.

EISA and EPAct designated a tax credit of $1.00 per gallon for the production of renewable diesel and $0.50 per gallon alternative fuels mixture credit (AFMC) for the production of qualified alternative
fuels, of which Dynamic Fuels renewable naphtha qualifies. These tax credits are generated upon mixture with allowed motor vehicle fuels such as petroleum diesel and gasoline. Prior to receiving EPA Part 79 registration on August 16,
2012, Dynamic Fuels renewable naphtha was not eligible to generate the $.50 per gallon AFMC. These tax credits are typically renewed at the end of each year in what is known as tax extenders bills. These tax credits expired on
December 31, 2009 and were not renewed until November 2010, retroactively for 2010 and extended through December 31, 2011. These tax credits again expired unrenewed on December 31, 2011. On January 3, 2013, President Obama signed
into law the American Taxpayer Relief Act of 2012, which reinstated the credits for 2013 and retroactively reinstated the credits for 2012. Dynamic Fuels or its owners will receive a combined total of approximately $23 million for 2012 production
from the $1 tax credit and will receive the alternative fuels mixture credit of $0.50 per gallon for a portion of the renewable naphtha also produced during 2012.



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Dynamic Fuels began commercial operations in November of 2010. As of September 30,
2012, the plant had sold 63.0 million gallons of renewable products such as diesel, naphtha, and LPG. Nameplate capacity for the plant is 75.0 million gallons per year. During its fiscal year ended September 30, 2012, the plant
produced renewable products at an average rate of 49% of design capacity compared to 35% during the fiscal year ended September 30, 2011.

The plant has experienced mechanical issues, hydrogen supply disruptions and feedstock adulterants, which have contributed to plant down time and higher than expected operational costs. Upgrades to the
feedstock pre-treatment area were installed during 2012. The quality of the feedstock has not impacted the quality of the finished product which has in all cases met or exceeded ASTM standards.

After completion of the maintenance turnaround on December 10, 2012 the plant was placed in standby mode as Dynamic Fuels monitored
economic conditions to determine the appropriate time to resume production. As of the date these financial statements were issued, the plant continues to be in standby mode. While economic conditions have improved in 2013, Syntroleum and Tyson have
not agreed on the economic conditions required for plant start-up. As start-up costs may require each of us to make additional loans to Dynamic Fuels, receipt of the tax credits, sometime during 2013, may play a role in start-up timing.

Business Strategy

Our
objective is to be the leading independent provider of Syntroleum technologies for the production of synthetic fuels. Our business strategy to achieve this objective involves the following key elements:

Focus on Commercialization.The Dynamic Fuels facility is the first of what we envision to be several production facilities
utilizing our technologies in the business model.

Transfer our Technologies. We executed a transfer of our technology
to Sinopec in 2009. Sinopec has reconstructed our Catoosa Demonstration Facility (CDF) in China for further research and development. The demonstration plant is operating successfully in China.

Provide Engineering Services. We continue to provide support to our licensees and prospective licensees through engineering
services. Engineering services consist of design engineering, project management, application engineering and site support.

Syntroleum
Technologies

Our Technologies produces synthetic liquid hydrocarbons that are compatible with refined products made from
crude oil. These products include:

Middle Distillatesfor use in reciprocating and jet/turbine engines; and

Specialty Products, such as synthetic lubricants, process oils, high melting point waxes, liquid normal paraffins, and
chemical feedstocks.

We believe the key advantages of the Syntroleum® Process over other GTL technologies are our (1) proprietary attrition-resistant slurry catalyst, (2) FT
catalyst regeneration technology, and (3) capability to operate with both dilute and non-dilute syngas.

Based on our
research, we believe our single-train design 17,000 barrels per day (b/d) facility can be economically developed subject to market conditions.

The Carbon to Liquids Process

The carbon to liquids process involves two
catalytic reactions: (1) conversion of carbon containing material into synthesis gas and (2) conversion of the synthesis gas into hydrocarbons over our proprietary Fischer-Tropsch catalyst.

Syngas may be generated from various carbon-bearing feedstocks by means of several commercial processes. Oxygen based natural gas, coal
and biomass gasifiers are commercially available from licensors.



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The
Synfining® Process

We have also developed
hydroprocessing for conversion of the Fischer-Tropsch wax into diesel fuel, jet fuel, lubricants, naphtha and other materials. This technology has been used to produce fuels for testing by the Department of Energy (DOE), the Department
of Defense (DOD), U.S. Department of Transportation (DOT) and manufacturers globally.

The
Bio-Synfining® Process

We have also adapted our Synfining® Process to accommodate fats, oils, greases, fatty acids and similar feedstocks in the production of renewable fuels. These feedstocks are similar in chemical
structure to the products produced from the FT process. This refining technology was used to produce jet fuels for testing by the DOD in 2008 and is currently used in our Dynamic Fuels facility in Geismar, Louisiana for the production of diesel,
naphtha, and LPG. Commercial certification of ASTM D7566 was obtained in 2011, resulting in our jet fuel being used as a 50/50 blend in commercial flights with KLM and Alaska Airlines. Phase change material can also be produced and is currently
being tested for commercial application, through funding by the DOE.

Syntroleum Advantage

We believe the Syntroleum® Technologies will be attractive for companies reviewing methods of commercializing natural gas, coal and biomass reserves by converting them into synthetic liquid
hydrocarbons.

Bio-Feedstocks

Renewable diesel can be used as a finished product and does not require blending however it can also be blended with petroleum-based fuels in any ratio. Our products can be transported through existing
distribution infrastructures and our renewable middle distillates are fungible products meeting ASTM standards which can be used as a drop in replacement fuel for existing diesel and jet engines.

Vegetable Oils. Soybean oil is the most commonly used feedstock in the U.S., and the most commonly used feedstock in
traditional biodiesel refining processes. Approximately 18.6 billion pounds of soybean oil were produced in the U.S. during the 2011 crop year according to the U.S. Department of Agriculture. Corn oil extraction technology has been
installed on an estimated 40% of all ethanol plants as of March 31, 2012 and is estimated to increase to 70% to 80% of all ethanol plants by the end of 2012. According to The Jacobsen, as of December 31, 2012 inedible corn oil production
was nearly 5 million pounds per day, or nearly 1.8 billion pounds per year, which equates to approximately 230 million gallons.

Animal Fats. Approximately 3.3 billion pounds of inedible tallow and 1.4 billion pounds of poultry fat were produced in the U.S. during calendar year 2011 according to the National Renderers
Association.

Recycled Greases. Approximately 2.7 billion pounds of grease were produced in the U.S.
during calendar year 2011, of which 1.3 billion pounds was yellow grease according to the National Renderers Association. Our Bio-Synfining® process can process high FFA feedstocks allowing us to utilize lower valued feedstock to create a high quality product.

During 2012, approximately 128 million pounds of yellow grease and 49 million pounds of corn oil were processed by the Dynamic
Fuels plant in Geismar, Louisiana.

Fischer-Tropsch Feedstocks

Natural Gas. According to the BP Statistical Review of World Energy, 2012, proved global natural gas reserves at the end of 2011 were 7,357 trillion cubic feet (Tcf). In the United States,
according to BP, proved gas reserves were 300.05 Tcf at the end of 2011 compared to 272.5 Tcf and 244.7 Tcf at the end of 2010 and 2009 respectively. Shale gas, has impacted the outlook for natural gas supply in the United States. The Potential Gas
Committee, a nonprofit organization that studies natural gas, issued its biennial assessment of the United States gas resources in April 2011. This study indicates that the United States possesses a resource base of 1,898 Tcf of natural gas.
This is the highest resource evaluation in the Committees 46-year history. Most of the increase arose from reevaluation of shale-gas plays in the Gulf Coast, Mid-Continent and Rocky Mountain areas. Of this amount, shale gas is 687 Tcf. This
resource base, when combined with proved U.S. natural gas reserves, indicates potential future gas reserves of over 2,170 Tcf.

Market
Demand

EPAct also provided for the United States Environmental Protection Agency (EPA) to establish the Renewable Fuels
Standard (RFS2) to set the volumes of renewable fuels that must be sold in the United States. Under the program, obligated parties, including petroleum refiners and fuel importers, must show compliance with these standards. Currently, Dynamic Fuels
renewable diesel meets two categories of an obligated partys required volume obligationbiomass-based diesel and advanced biofuel. Consistent with the RFS program, the Environmental Protection Agency, or EPA, announced it would require
the domestic use of 800 million gallons of renewable or biodiesel in 2011, one billion gallons in 2012 and 1.28 billion in 2013.



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Many other factors influence the demand for our products, including those discussed at
Item 1A. Risks Relating to Our Business, such as prices and availability of alternative products.

Intellectual Property

The success of our intellectual property portfolio depends on our ability to foster, invent, and
develop new ideas, in addition to our ability to effectively obtain, protect, and enforce our intellectual property rights against third parties. We regard the protection of our proprietary technologies as critical to our future success, and
therefore rely on a combination of patent, copyright, trademark, trade secret and other laws and contractual restrictions to protect our proprietary rights. We protect the Syntroleum® Process and the Synfining®
Process primarily through patents and trade secrets. It is our policy to seek protection for our proprietary products and processes by filing patent applications, when appropriate, in the United States and selected foreign countries and to encourage
or further the efforts of others who have licensed technology to us to protect and perfect any intellectual property rights. Our ability to protect and enforce these valuable intellectual property rights involves complex legal, scientific and
factual questions and uncertainties.

Syntroleum has a policy to honor the valid, enforceable intellectual property rights of
others. However, we acknowledge that the commercialization of our technologies may give rise to claims that our technologies infringe upon the patents or other proprietary rights of others. In that regard, Syntroleum is involved in three suits with
Neste Oil, wherein the parties have asserted their respective patents against the other.

In May 2012, Neste Oil Oyj sued
Syntroleum for alleged infringement of Nestes U.S. Patent No. 8,187,344. On January 31, 2013, the United States District Court for the District of Delaware granted Syntroleums motion to stay Nestes lawsuit pending
reexamination of the 344 patent by the U.S. Patent & Trademark Office (USPTO). Previously, the USPTO had granted Syntroleums inter partes reexamination request and issued a September 14, 2012 Office Action initially
rejecting all claims of the 344 patent as obvious in view of the prior art. The 344 patent is related to and shares the same inventors as a prior Neste patent (U.S. Patent No. 7,279,018), and both are directed to a fuel composition
for diesel engines. The USPTOs recent Order is consistent with a prior finding on March 22, 2012 by the USPTOs Board of Patent Appeals and Interferences affirming the Examiners rejection of the 018 patents claims.
Neste declined to appeal that ruling and on July 31, 2012, the USPTO issued a Reexamination Certificate canceling all claims of the 018 patent. The reexamination proceedings involving the 344 patent remain pending.

Syntroleum continues to defend a second suit filed by Neste Oil Oyj on December 20, 2012 in the District of Delaware alleging patent
infringement of Nestes U.S. Patent No. 8,212,094. Syntroleums response to Nestes complaint was filed on February 25, 2013. The 094 patent covers similar subject matter and shares a common inventor with Nestes
018 and 344 patents. Syntroleum has not infringed any of Nestes alleged patent rights and Syntroleum will continue to vigorously defend against Nestes allegations. The 094 patent, like the 018 and 344
patents, adds nothing new to the field of diesel fuels or methods for making same.

On February 7, 2013, Syntroleum filed
suit against Neste Oil Singapore Pte Ltd with the High Court of Singapore asserting its Singapore Patent No. 172,045 entitled Even Carbon Number Paraffin Composition And Method of Manufacturing Same. In the court filing, Syntroleum
alleges that Nestes operation at its renewable diesel refinery in Singapore involves the processing of a bio-renewable feedstock to produce a hydrocarbon composition having at least 75 wt % even carbon number paraffins which
Syntroleum alleges is claimed at the very least, in claim 22 of the Patent. Syntroleums 045 patent issued on November 15, 2012, and expires on December 10, 2028.

Syntroleum currently owns, or has licensed rights to 65 active patents, and are actively prosecuting 21 patent applications, in the
United States and various foreign countries that relate to one or more embodiments of Syntroleum technology. Three patents were granted to Syntroleum during the past year. Most of our patents have been issued since the late 1990s and will not
expire until 2017. Patent rights are granted for a term of 20 years in the United States and for similar terms in foreign jurisdictions, subject to paying required fees to maintain the patent holders rights. The cost of maintaining our patents in
the United States and foreign jurisdictions is included in our general and administrative expenses.

In any potential
intellectual property dispute involving us, our licensees could also become the target of litigation. Generally, our license agreements require us to indemnify the licensees against specified losses, including the losses resulting from patent and
trade secret infringement claims, subject to certain limitations. Our indemnification and support obligations could result in substantial expenses and liabilities to us which could have a material adverse effect on our business, operating results
and financial condition. See Item 1A. Risk Factors-Risks Relating to Our Technology.



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Employees

As of March 1, 2013, we had 19 full-time employees, none of which is represented by a labor union. We have experienced no work stoppages. We believe our relationship with our employees is good.

Government Regulation

We are subject to specific government legislation under EPAct and RFS2, as previously discussed.

In addition, we are subject to extensive international and domestic federal, state and local laws and regulations relating to the protection of the environment, including laws and regulations relating to
the release, emission, use, storage, handling, cleanup, transportation and disposal of hazardous materials, as well as to employee health and safety.

Our operations in the United States are also subject to the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), also known as the Superfund law,
and similar state laws, which can impose joint and several liability for site cleanup, regardless of fault, upon statutory classes of persons with respect to the release into the environment of substances designated under CERCLA as hazardous
substances (Hazardous Substances). These classes of persons, or so-called potentially responsible parties (PRPs), include the current and certain past owners and operators of a facility where there has been a release or
threat of release of a Hazardous Substance and persons who disposed of or arranged for the disposal of Hazardous Substances found at a site. CERCLA also authorizes the EPA and, in some cases, third parties to take actions in response to threats to
the public health or the environment and to seek to recover from the PRPs the costs of such action. In the course of our operations, we have generated and will generate wastes that may fall within CERCLAs definition of Hazardous Substance. We
may also be the owner or operator of sites on which Hazardous Substances have been released. To our knowledge, neither we nor our predecessors have been designated as a PRP by the EPA under CERCLA. We also do not know of any prior owners or
operators of our properties that are named as PRPs related to their ownership or operation of such properties.

International
and domestic environmental laws and regulations often require grant of a permit or other authorization before activities may be conducted, and compliance with laws, regulations and any permit requirements can increase the costs of designing,
installing and operating a plant designed with our Technology. Emissions from a plant using our technology may require the installation of abatement equipment to meet permit requirements.

Although we do not believe that compliance with environmental and health and safety laws in connection with our current operations will
have a material adverse effect on us, we cannot predict with certainty the future costs of complying with environmental laws and regulations and containing or remediating contamination. In the future we could incur material liabilities or costs
related to environmental matters, and these environmental liabilities or costs (including fines or other sanctions) could have a material adverse effect on our business, operating results and financial condition.

Operating Hazards

Operations at a facility using our Technology will involve a risk of incidents involving personal injury and property damage. An incident
could affect our operating costs, insurability and relationships with customers, employees and regulators.

Available Information

Our website address is www.syntroleum.com. We make our website content available for information purposes only. It should
not be relied upon for investment purposes, nor is it incorporated by reference in this Annual Report on Form 10-K. We make available on this website under Investor Relations-Financial Information  Filings, free of charge, our
annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file those materials with, or furnish those materials to, the SEC. The
SEC also maintains a website at www.sec.gov that contains reports, proxy statements and other information regarding SEC registrants, including us. Additionally, the public may read and copy any materials filed with the SEC at the SECs Public
Reference Room at 100 F Street, NE, Washington, D.C. 20549.

Item 1A. Risk Factors

You should carefully consider the risks described below. The risks and uncertainties described below encompass many of the risks that
could affect our company. Not all risks and uncertainties are described below. Risks that we do not know about could arrive and issues we now view as minor could become more important. If any of the following risks actually occur, our business,
financial condition or results of operations could be materially and adversely affected. In that case, the trading price of our common stock could decline and you may lose all or part of your investment in us.



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Risks Relating to Our Technology

We might not successfully commercialize our technology, and commercial-scale plants based on the Syntroleum® Process may never be successfully constructed or operated by ourselves or our licensees.

We do not have significant experience managing the financing, design, construction or operation of commercial-scale
plants, and we may not be successful in doing so. Our Dynamic Fuels plant is the first commercial scale plant operating to date and it is based on our Bio-Synfining® Technology. The plant has been operating since November 2010, but has not yet achieved profitability or operated at full design capacity on a continuous basis for an
extended length of time.

No commercial-scale plant based on the Synfining® Processes has been operational to date. A commercial-scale plant based on the Synfining® Processes may never be successfully built either by us or by our licensees. Success depends on our licensees
ability to economically design, construct and operate commercial-scale plants based on the Syntroleum®
Technologies which depends on a variety of factors, many of which are outside our control.

Our licensees will determine
whether we issue any plant site licenses to them. On June 27, 2012 Dynamic Fuels LLC exercised its right to obtain a site license. In addition, our license agreements may be terminated by the licensee, with or without cause and without penalty,
upon 90 days notice to us. If we do not receive payments under our license agreements, we may not have sufficient resources to implement our business strategy. Our licensees are not restricted from pursuing alternative technologies on their
own or in collaboration with others, including our competitors, with the exception of those restrictions agreed to by Tyson in the limited liability company agreement relating to Dynamic Fuels.

Commercial-scale plants based on the
Syntroleum® Technologies might not produce results necessary for success, including results demonstrated on a laboratory, pilot plant and demonstration basis.

A variety of results necessary for successful operation of the Syntroleum® Technologies could fail to occur at a commercial plant, including reactions demonstrated in research and
development. Results that could cause commercial-scale plants based on our Technologies to be unsuccessful include:



| |  | feedstocks that are not on specification and or have adulterants requiring additional pretreatment, resulting in plant modifications and/or supply modifications
increasing capital and operating expense and causing schedule delays;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | feedstock supply interruptions;
| | - | -------------------------------



| |  | failure of third party suppliers, contractors or technologies to deliver feedstocks, goods and/or services on specification;
| | - | ----------------------------------------------------------------------------------------------------------------------------



| |  | catalyst activity (of all types) that are less than design basis which would require an increase in the amount of catalyst, and/or number of reactors required to
produce at the design rate resulting in increased capital and operating costs;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | shorter than anticipated catalyst life, which would require more frequent catalyst regeneration, catalyst replacements, or both, thereby increasing operating costs;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | excessive production of gaseous or light hydrocarbons compared to design basis, which would lower the amount of desirable hydrocarbons produced, and reduce revenues and
margins;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | inability of third-party gasification and synthesis gas clean-up technology integrated into the Syntroleum® Process to produce on specification synthesis gas adequate for economic operation of a FT plant; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | longer project cycles and/or higher than anticipated capital and operating costs including feedstock costs.
| | - | -----------------------------------------------------------------------------------------------------------

In addition, we have encountered, and future plants could experience, mechanical difficulties related or unrelated
to elements of the Syntroleum® Technologies.

Many of our competitors have significantly more resources than we do, and technologies developed by competitors could become more
commercially successful than ours or render our technologies obsolete.

Development and commercialization of FT and
renewable fuels technologies is highly competitive, and other technologies could become more commercially successful than ours. Our Technologies are based on chemistry that has been used by several companies in synthetic fuel projects over the past
60 years. Our competitors include major integrated oil companies as well as independent technology providers that have developed or are developing competing technologies. These companies typically have significantly more resources than we do.

As our competitors continue to develop competing technologies, one or more of our current technologies could become obsolete.
Our ability to create and maintain technological advantages is critical to our future success. As new technologies develop, we may be placed at a competitive disadvantage forcing us to implement new technologies at a substantial cost. We may not be
able to successfully develop or expend the financial resources necessary to acquire or develop new technology.



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Our ability to protect our intellectual property rights involves complexities and
uncertainties and commercialization of our Technologies could give rise to claims that our technology infringes upon the rights of others.

Our success depends on our ability to protect our intellectual property rights and open art rights, which involves complex legal and scientific uncertainties. We rely on a combination of patents,
copyrights, trademarks, trade secrets and contractual restrictions to protect our proprietary rights. Patents may not be granted, and our existing patents might not provide us with commercial benefit or might be infringed upon, invalidated or
circumvented by others. The availability of patents in foreign markets, and the nature of any protection against competition that may be afforded by those patents, is often difficult to predict and vary significantly from country to country. We, our
licensors, or our licensees may choose not to seek, or may be unable to obtain, patent protection in a country that could potentially be an important market for our Technologies. The confidentiality agreements that are designed to protect our trade
secrets could be breached, and we might not have adequate remedies for the breach. Additionally, our trade secrets and proprietary know-how might otherwise become known or be independently discovered by others.

Commercialization of our Technologies may give rise to claims that our technologies infringe upon the patents or proprietary rights of
others. As previously discussed, we are currently involved in litigation concerning alleged infringement claims. We may not become aware of patents or rights that may have applicability until after we have made a substantial investment in the
development and commercialization of our Technology. Third parties may claim infringement. Legal actions could be brought against us, our co-venturers or our licensees claiming damages and seeking an injunction that would prevent us, our
co-venturers or our licensees utilizing the affected technologies. If an infringement action were successful, in addition to potential liability for damages, our co-venturers, our licensees or we could be required to obtain a license in order to
continue to test, market or commercialize the affected Technologies. Any required license might not be made available or, if available, might not be available on acceptable terms, and we could be prevented entirely from testing, marketing or
commercializing the affected technology. We may have to expend substantial resources in litigation, either in enforcing our patents, defending against the infringement claims of others, or both. Many possible claimants, such as the major energy
companies that have competing technologies competitive with our Technologies, have significantly more resources to spend on litigation.

We could have potential indemnification liabilities to licensees relating to the operation of plants based on our Technologies or intellectual property disputes.

Our indemnification obligations could result in substantial expenses and liabilities to us if intellectual property rights claims were to
be made against us or our licensees, or if plants based on our Technology were to fail to operate as designed. Generally our license agreements require us to indemnify the licensee, sometimes subject to certain limitations against specified losses
relating to, among other things:



| |  | use of patent rights and technical information relating to the Syntroleum® Technologies;
| | - | ----------------------------------------------------------------------------------------



| |  | acts or omissions by us in connection with our preparation of process design packages (PDP) for plants; and
| | - | -------------------------------------------------------------------------------------------------------------



| |  | performance guarantees that we may provide.
| | - | -------------------------------------------

Risks Relating to Renewable Fuels Industry

The U.S. renewable fuels industry is highly dependent on a mix of international, federal and state legislation and regulation and any changes could harm our business and financial condition.

The Energy Independence Act and EPAct established minimum nationwide levels of renewable fuels, which include biomass
based diesel, ethanol and other liquid fuel produced from biomass to be blended into the fuel supply. By the year 2022, these standards require that the national volume of renewable fuels to be blended into the fuel supply equal or exceed 36 billion
gallons. While these renewable fuel standards should stimulate demand for renewable fuels generally, there can be no assurance of specific demand for renewable diesel. Additionally this legislation has waiver provisions. Any waiver of the renewable
fuel standards could adversely impact the demand for renewable diesel and may have a material adverse effect on our financial condition and results of operations.

Risks Relating to Our Business

We will need to obtain funds from
additional financings or other sources for our business activities. If we do not receive these funds, we would need to reduce, delay or eliminate some of our expenditures.

In the past we have sustained recurring losses and negative cash flows from operations. As of December 31, 2012, we had approximately $15.9 million of cash and cash equivalents to fund operations and
investing activities. We review cash flow forecasts and budgets periodically.



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We expect that we may need to raise additional capital to accomplish our business plan over
the next several years through debt or equity financing, joint ventures, license agreements, sale of assets, as well as various other financing arrangements. If we obtain additional funds by issuing equity securities, dilution to stockholders may
occur. In addition, preferred stock could be issued without stockholder approval and the terms could include dividend, liquidation, conversion, voting and other rights more favorable than the rights of the holders of our common stock. There can be
no assurance as to the availability or terms upon which such financing and capital might be available.

Our agreement with
Tyson concerning Dynamic Fuels allows the participants to elect not to invest in a plant or to cease making capital contributions in the construction of a plant under certain circumstances. Should a participant in a project elect not to invest or to
cease investing in the construction of the plant the other participants in the project will need to raise additional capital from third parties or to take on additional interest in the project and fund the additional capital internally. There can be
no assurances that we would be able to raise the additional capital from third parties on terms acceptable to us or to fund the additional capital requirements internally. See discussion of our capital commitments at Item 7. Managements
Discussion and Analysis of Financial Condition and Results of Operation  Contractual Obligations.

If adequate funds are
not available, we may be required to reduce, delay or eliminate expenditures for our future plant development and other activities, or seek to enter into a business combination transaction with or sell assets to another company. We could also be
forced to license to third parties the rights to commercialize additional products or technologies that we would otherwise seek to develop ourselves. The transactions outlined above may not be available to us when needed or on terms acceptable or
favorable to us.

The decline in our stock price makes the cost of obtaining additional equity capital more expensive to our
shareholders by reason of the attendant dilution. Further, our stock price decline and related decline in market capitalization has limited our ability to sell shares of common stock from our shelf registration statement in order to obtain capital.

Construction and operations of plants based on the Syntroleum® Technologies will be subject to risks of delay and cost overruns.

The construction and operation of plants based on our Technologies will be subject to the risks of delay or cost overruns. Delays in construction or operation of the plant could directly impact the
capital expenditures or working capital. Increases in costs could result in increased equity payments from parent companies.

Dynamic Fuels plant being shut down for an extended period could adversely affect Syntroleum financial position.

The Dynamic Fuels plant is operated at a single facility in Geismar Louisiana. Any natural disaster or other serious disruption to this
facility due to flooding, hurricane, fire or other extreme factors beyond our control could damage our capital equipment or supporting infrastructure and materially impair the ability of the plant to operate. Such a disruption could result in lost
revenues, increased costs and /or reduced profits.

If the Plant is shut down, it may experience a prolonged start-up period,
regardless of the reason for the shutdown. Such start-up periods could range from several days to several months, depending on the reason for the shutdown and other factors. The shutdown of the Plant for a substantial period of time for any reason
could have a material adverse effect on our financial position and results of operations.

The Dynamic Fuels plant has
remained shut down and in standby mode, primarily because of adverse economic conditions, since completion of a maintenance turnaround in December, 2012. We have not yet agreed with Tyson on the economic conditions for plant start-up.

We could experience disagreements with our joint venture partners which could adversely affect the operations or financial condition
of our plants.

The operation of Dynamic Fuels is to be exercised jointly by representatives of the Company and Tyson
equally, with no member exercising control. Decisions surrounding operation and financing of the Plant generally require both members to agree. Disagreements between the members or a modification in the level of participation from one of the members
could significantly impact the Plant and have a material adverse effect on our financial position and results of operations.

We are significantly dependent on significant customers and the loss of one or more of such significant customers could adversely
affect our operations and financial condition.

Our revenue in 2012 and 2011 was derived almost entirely from the
provision of technical services to two customers, Dynamic Fuels and Sasol. The agreement pursuant to which we provide technical services to Dynamic Fuels is effective through the service life of the Dynamic Fuels plant; however, Dynamic Fuels is not
obligated to issue any work orders to us nor are we obligated to accept any work orders issued by Dynamic Fuels. We have also had historical disagreements with Dynamic Fuels and Tyson regarding payment for the technical services that we performed
for Dynamic Fuels. The agreement pursuant to which we historically provided technical services to Sasol terminated on March 1, 2013 upon the sale of our pilot plant to Sasol (USA) Corporation (Sasol USA), an affiliate of Sasol. We
continue to provide technical services to Sasol USA pursuant to an agreement that terminates on March 1, 2014, subject to Sasol USAs right to extend the term of the agreement for up to two additional one-year terms. The loss of either of these
significant customers, or our inability to collect revenue for technical services that we perform for these customers, could have a material adverse effect on our operations and financial condition.

We need to remain listed on the NASDAQ stock market to be able to access adequate funding from time to time. We could face de-listing
issues that would impair the liquidity of our stock and our availability to access the capital markets.

We are required
to maintain standards for listing of our common stock on the NASDAQ Stock Market and we cannot assure you that we will be able to do so. One of those standards is that our common stock maintains a minimum price of at least $1.00 per share. On
June 8, 2012 we received a Nasdaq Staff Deficiency Letter, indicating our common stock had closed below the minimum $1.00 per share requirement for continued inclusion under the marketplace Rule 5500(a)(2). We were provided 180 calendar days,
or until December 5, 2012 to regain compliance. On December 6, 2012 we received a Nasdaq notification indicating we were eligible for an additional 180 calendar day compliance period or until June 3, 2013 to regain compliance. Their
determination was based on our meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Capital market with the exception of the bid price requirement, and
our written notice of our intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. We can make no assurance that we will be able to remain listed on the NASDAQ Stock Market.



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We have incurred losses.

As of December 31, 2012 we had an accumulated deficit of $360.5 million. Because we do not have an operating history upon which an
evaluation of our prospects can be based, our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by small companies seeking to develop new and rapidly evolving technologies. To address these risks we
must, among other things, continue to attract investment capital, respond to competitive factors, continue to attract, retain and motivate qualified personnel and commercialize our technologies. We may not be successful in addressing these risks,
and we may not achieve or sustain profitability.

Our anticipated expense levels are based in part on our expectations as to
future operating activities and on historical financial data. Capital expenditures will depend on progress we make in developing various projects on which we are currently working. Increased revenues or cash flows may not result from these expenses.

If prices or margins for crude oil, natural gas, coal, vegetable oil, biomass and fats and other
commodities are unfavorable, plants based on the Syntroleum® Technologies may not be economical.

Because the products from plants utilizing our Technologies are expected to compete in markets with conventional petroleum products, an
increase in alternative feedstock prices relative to prices for oil, or a decrease in prices for oil relative to alternative feedstock prices, could adversely affect the operating results of these plants. Higher than anticipated costs for the
catalysts and other materials used in these plants could also adversely affect operating results. Factors that could cause changes in the prices and availability of oil, natural gas, coal, biomass, fats, oils and refined products include:



| |  | changes in supply and demand balance of petroleum feedstocks, refined petroleum products, agricultural commodities variances impacted by crop yields, planting
decisions, protein complex variances;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | weather conditions;
| | - | -------------------



| |  | domestic and foreign government regulation;
| | - | -------------------------------------------



| |  | actions of the Organization of Petroleum Exporting Countries;
| | - | -------------------------------------------------------------



| |  | political conditions in countries producing feedstocks;
| | - | -------------------------------------------------------



| |  | supply of crude oil, natural gas, coal, biomass fats, greases and oils;
| | - | -----------------------------------------------------------------------



| |  | fuel switching between various sources of energy (natural gas, coal, solar, fats, oils and greases, biomass, or other renewable or non-renewable);
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  | capacities of pipelines;
| | - | ------------------------



| |  | seasonality;
| | - | ------------



| |  | price and availability of alternative fuels; and
| | - | ------------------------------------------------



| |  | overall economic conditions.
| | - | ----------------------------

Our success depends on the performance of our executive officers and key personnel, the loss of who would disrupt our business
operations.

We depend to a large extent on the performance of our executive officers, Edward G. Roth, our Chief Executive
Officer, Karen L. Power, our Senior Vice President and Principal Financial Officer, and certain key personnel. Our ability to implement our business strategy may be constrained and the timing of implementation may be impacted if we are unable to
attract and retain sufficient personnel. At December 31, 2012, we had 19 full-time employees. We do not maintain key person life insurance policies on any of our employees. We have entered into employment agreements with several key
employees.

We depend on strategic relationships with feedstock suppliers, site owners engineering companies, and
customers. If we are not successful in entering into and achieving the benefits of these relationships, this could negatively impact our business.

Our licensees typically enter into commercial arrangements with feedstock suppliers, construction contractors, engineering service companies, site owners, equipment manufacturers, and customers.
These relationships may take the form of joint ventures with other private parties or local government bodies, contractual arrangements with other companies, or minority investments from third parties. There can be no assurances that we or our
licensees will be able to establish and maintain these strategic relationships. In addition, the dynamics of our relationships with strategic participants may require us to incur expenses or undertake activities we would not otherwise incur in order
to fulfill our obligations. If we do not successfully establish or maintain strategic relationships, our business may be negatively affected.



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Our operating results may be volatile due to a variety of factors and are not a
meaningful indicator of future performance.

We expect to experience significant fluctuations in future annual and
quarterly operating results because of the unpredictability of many factors that impact our business. These factors include:



| |  | government legislation, subsidies on renewable product, and varying regulatory quotas;
| | - | --------------------------------------------------------------------------------------



| |  | volatile price of commodities used and produced;
| | - | ------------------------------------------------



| |  | overcapacity in the renewable fuels industry;
| | - | ---------------------------------------------



| |  | demand for licenses or other technology transfer agreements for our Technologies and receipt and revenue recognition of license fees;
| | - | -------------------------------------------------------------------------------------------------------------------------------------



| |  | timing of any construction by us or our licensees of plants;
| | - | ------------------------------------------------------------



| |  | introduction or enhancement of FT and renewable fuels technologies by us and our competitors;
| | - | ---------------------------------------------------------------------------------------------



| |  | market acceptance of new technologies; and
| | - | ------------------------------------------



| |  | general economic conditions.
| | - | ----------------------------

As a result, we believe that period-to-period comparisons of our results of operations are not meaningful and should not be relied upon
as any indication of future performance. Due to the foregoing factors, it may be that in some future year or quarter our operating results will be below the expectations of public market analysts and investors. In that event, the price of our common
stock would likely be materially adversely affected.

We are subject to extensive laws relating to the protection of the
environment, and these laws may increase the cost of designing, constructing and operating our plants based on our Technologies or affect demand for the products of these plants.

If we violate any of the laws and regulations relating to the protection of the environment, we may be subject to substantial fines,
criminal sanctions or third party lawsuits and may be required to install costly pollution control equipment or curtail operations. Plants built with our Technologies will generally be required to obtain environmental, industrial siting,
construction and numerous other permits. Compliance with these permits may increase the costs of designing, constructing and operating our plants or delay plant development. New legislation or regulatory programs that restrict emissions of
greenhouse gases could have an adverse effect on our operations. We may also face exposure to actual or potential claims and lawsuits involving environmental matters with respect to our previously owned real estate. Changes in environmental laws and
regulations occur frequently, and changes may have a material adverse effect on our results of operations, competitive position, or financial condition.

Terrorist threats and U.S. military actions could result in a material adverse effect on our business.

Acts of terrorism in the United States or elsewhere could occur. These and like developments could cause instability in the worlds financial and insurance markets and increase political and economic
instability in the geographic areas in which we may wish to operate. These developments could also lead to increased volatility in prices for crude oil, natural gas and the feedstocks for our plants and the cost and availability of insurance. In
addition, these developments could adversely affect our ability to access capital.

United States government regulations
effectively preclude us from actively engaging in business activities in certain countries. These regulations could be expanded to cover countries where we may wish to operate in the future. These developments could subject the operations of our
company to increased risks and, depending on their magnitude, could have a material adverse effect on our business.

We may
not have enough insurance to cover all of the risks we face.

In accordance with customary industry practices, we maintain
insurance coverage against some, but not all, potential losses in order to protect against the risks we face. We may elect not to carry insurance if our management believes that the cost of available insurance is excessive relative to the risks
presented. In addition, we cannot insure fully against pollution and environmental risks. The occurrence of an event not fully covered by insurance, such as a leak, fire or explosion could have a material adverse effect on our financial condition
and results of operations.



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##### Table of Contents

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

We own a nominal two b/d pilot plant located on approximately three acres leased in Tulsa, Oklahoma. This lease expires in May 2022, and annual lease payments total approximately $9,000. On March 1,
2013 this plant was sold with the Company receiving $5,798,000 in cash and the lease being cancelled.

We lease a corporate
facility in Tulsa, Oklahoma. The lease expires in 2014 with an option to renew and provides for payments of approximately $89,800 annually, with escalation amounts occurring in 2013.

Item 3. Legal Proceedings

In the ordinary
course of our business we have been a party to legal proceedings, such as the previously described pending patent infringement cases with Neste Oil Oyj.

Item 4. Mine Safety Disclosures

Not
Applicable.



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##### Table of Contents

Part II

Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities

Stock Prices. Our common stock is traded on the NASDAQ Stock Market under the symbol SYNM.
The table below reflects the high and low closing sales prices for our common stock for each quarter during 2012 and 2011.



|                              |  |             |      |  |     |   |      | 
|----------------------------- |  | ----------- | ---- |  | --- | - | ---- | 
|                              |  | Sales Price |     
|                              |  | High        |      |  | Low |  
|Year Ended December 31, 2012: |  |             |      |  |     |   |      | 
|First Quarter                 |  | $           | 1.36 |  |     | $ | 0.97 | 
|Second Quarter                |  | $           | 1.02 |  |     | $ | 0.60 | 
|Third Quarter                 |  | $           | 0.85 |  |     | $ | 0.61 | 
|Fourth Quarter                |  | $           | 0.79 |  |     | $ | 0.34 | 
|Year Ended December 31, 2011: |  |             |      |  |     |   |      | 
|First Quarter                 |  | $           | 2.35 |  |     | $ | 1.51 | 
|Second Quarter                |  | $           | 2.24 |  |     | $ | 1.47 | 
|Third Quarter                 |  | $           | 1.46 |  |     | $ | 0.86 | 
|Fourth Quarter                |  | $           | 1.22 |  |     | $ | 0.80 | 

Record Holders. The 99,238,146 shares of our common stock outstanding at March 1, 2013 were
held by approximately 1,100 record holders (including brokerage firms and other nominees).

Dividends. Cash dividends
have not been paid since our inception. We currently intend to retain any earnings for the future operation and development of our business and do not currently anticipate paying any dividends in the foreseeable future. Any future determination as
to dividend policy will be made, subject to Delaware law, at the discretion of our board of directors and will depend on a number of factors, including our future earnings, capital requirements, financial condition, business prospects and other
factors that our board of directors may deem relevant.

Our stock price may continue to be volatile and could decline in
the future.Historically, the market price of our common stock has been very volatile. The trading price of our common stock is expected to continue to be subject to substantial volatility as a result of internal and external events. This
volatility has often been unrelated to the operating performance of the Company. These broad market fluctuations may adversely affect the market price of our common stock.

We are required to maintain standards for listing of our common stock on the NASDAQ Stock Market and we cannot assure you that we will be able to do so.

Future sales of our common stock could adversely affect our stock price.Substantial sales of our common stock in the public
market, or the perception by the market that those sales could occur, could lower our stock price or make it difficult for us to raise equity capital in the future. These sales could include sales of our common stock by our directors and officers,
who beneficially owned approximately 7% percent of the outstanding shares of our common stock as of March 1, 2013. We cannot predict if future sales of our common stock, or the availability of our common stock for sale, will impact the market
price for our common stock or our ability to raise capital by offering equity securities.

Issuer Repurchases of Equity Securities

Neither we nor anyone acting on our behalf or that of an affiliated purchaser purchased shares of our common stock during
the three months ended December 31, 2012.

Performance Graph

The following performance graph compares the performance of our common stock during the period beginning on December 31, 2007 and
ending on December 31, 2012 to (i) the NASDAQ Stock Market index consisting of United States companies (the NASDAQ Composite) (ii) an index consisting of all U.S. and Foreign publicly traded companies listed as
non-financial stocks with Standard Industrial Codes 1100-5999, 7000-9999 (iii) our peer group which includes companies focused on renewable products or alternative sources of energy for the same period. The graph assumes a $100 investment in
our common stock and in each of the indexes at the beginning of the period and a reinvestment of dividends paid on such investments throughout the period.



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##### Table of Contents

Some of our peer group has been changed starting in 2012. Currently there exist more
publicly traded companies which more closely match our company in the renewable products arena. Our new peer group consists of Pacific Ethanol, Inc., Synthesis Energy Systems, Inc., BioFuel Energy Corp, Renewable Energy Group, Inc., Future Fuels
Corp., Solazyme, GEVO, Amyris, KiOR and Codexis. Syntroleums past peer group included Andersons Inc., Aventine Renewable Energy Holdings, Inc., Ballard Power Systems, Inc., BioFuel Energy Corporations, Evergreen Energy, Inc., FuelCell Energy
Inc., Fuel-Tech, Inc., Headwaters Inc., Pacific Ethanol, Rentech Inc., Synthesis Energy Systems, and Verenium Corporations.



LOGO



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##### Table of Contents

Item 6. Selected Financial Data

The following selected financial information should be read in conjunction with Managements Discussion and Analysis of
Financial Condition and Results of Operation in Item 7 of this Annual Report on Form 10-K and our consolidated financial statements and the related notes thereto included in Item 8 of this Annual Report on Form 10-K.



|                                           |  |                                       |        |   |      |   |         |      |  |   |        |   |  |      |        |   |  |   |        |  
|------------------------------------------ |  | ------------------------------------- | ------ | - | ---- | - | ------- | ---- |  | - | ------ | - |  | ---- | ------ | - |  | - | ------ | -
|                                           |  | For the Year Ended December 31,       |       
|                                           |  | 2012                                  |        |   | 2011 |   |         | 2010 |  |   | 2009   |   |  | 2008 |       
|                                           |  | (in thousands, except per share data) |       
|Statement of Operations Data:              |  |                                       |        |  
|Total revenues                             |  | $                                     | 17,526 |   |      | $ | 4,214   |      |  | $ | 8,410  |   |  | $    | 27,432 |   |  | $ | 4,890  |  
|Operating income (loss)                    |  |                                       | 9,217  |   |      |   | (3,049  | )    |  |   | (2,252 | ) |  |      | 12,469 |   |  |   | (8,381 | )
|Income (loss) from continuing operations   |  |                                       | (1,063 | ) |      |   | (16,922 | )    |  |   | (9,633 | ) |  |      | 5,160  |   |  |   | (5,448 | )
|Income (loss) from discontinued operations |  |                                       | (38    | ) |      |   | (27     | )    |  |   | 97     |   |  |      | (122   | ) |  |   | 1,310  |  
|Net income (loss)                          |  | $                                     | (1,101 | ) |      | $ | (16,949 | )    |  | $ | (9,536 | ) |  | $    | 5,038  |   |  | $ | (4,138 | )
|Basic and diluted per share amounts -      |  |                                       |        |   |      |   |         |      |  |   |        |   |  |      |        |   |  |   |        |  
|Income (loss) from continuing operations   |  | $                                     | (0.01  | ) |      | $ | (0.19   | )    |  | $ | (0.12  | ) |  | $    | 0.07   |   |  | $ | (0.09  | )
|Income (loss) from discontinued operations |  | $                                     | (0.00  | ) |      | $ | (0.00   | )    |  | $ | (0.00  | ) |  | $    | 0.00   |   |  | $ | 0.02   |  
|Net income (loss)                          |  | $                                     | (0.01  | ) |      | $ | (0.19   | )    |  | $ | (0.12  | ) |  | $    | 0.07   |   |  | $ | (0.07  | )



|                                              |  |                    |        |  |      |   |        |      |  |   |        |  |      |   |        |  |  |        |  | 
|--------------------------------------------- |  | ------------------ | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  | ---- | - | ------ |  |  | ------ |  | 
|                                              |  | As of December 31,
|                                              |  | 2012               |        |  | 2011 |   |        | 2010 |  |   | 2009   |  | 2008
|                                              |  | (in thousands)    
|Balance Sheet Data:                           |  |                    |        |  |      |   |        |      |  |   |        |  |      |   |        |  |  |       
|Working capital                               |  | $                  | 16,149 |  |      | $ | 22,495 |      |  | $ | 12,950 |  |      | $ | 27,307 |  |  | $7,709
|Investment in and loans to Dynamic Fuels, LLC |  |                    | 38,407 |  |      |   | 38,643 |      |  |   | 43,523 |  |      |   | 27,900 |  |  | 17,486
|Total assets                                  |  |                    | 56,745 |  |      |   | 66,651 |      |  |   | 59,396 |  |      |   | 58,861 |  |  | 38,838
|Deferred revenue                              |  |                    | 15,612 |  |      |   | 24,366 |      |  |   | 24,300 |  |      |   | 25,668 |  |  | 22,613

Item 7. Managements Discussion and Analysis of Financial Condition and Results of
Operation

Overview

Our focus is the commercialization of our Technologies to produce synthetic liquid hydrocarbons. Operations to date have consisted of activities related to the commercialization of our renewable fuels
technology and previously consisted of research and development designed to convert carbonaceous material (biomass, coal, natural gas and petroleum coke) into synthetic liquid hydrocarbons including such products as diesel, jet fuel (HRJ), kerosene,
naphtha, and propane.

Operating Revenues

Our revenues were primarily generated from the sale or transfer of our Technologies, engineering technical services from third parties and from Dynamic Fuels and royalties from Dynamic Fuels plant
production. In the future, we expect to receive revenue from engineering technical services, royalties and other income from our investment in Dynamic Fuels, sales and licensing of our Technologies and product sales or royalties for the use of our
Technologies in facilities in which we own an equity interest.

We record revenue related to royalty fees based on the
production of the facility. Income and Loss from our investment in Dynamic Fuels is recorded below operating income, as Income/Loss in Equity of Dynamic Fuels, LLC. The income or loss is based on our proportionate equity ownership of the
plant.

Our future operating revenues and investments in projects will depend on the successful commercial operation of the
Dynamic Fuels facility. We expect our results of operations and cash flows to be affected by changing crude oil, natural gas, oils, fats, fuel and specialty product prices and trends in environmental regulations.



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Operating Expenses

Our operating expenses historically have consisted primarily of engineering, including third party engineering and general and administrative expenses, which include costs associated with general
corporate overhead, compensation expense, legal and accounting expenses and expenses associated with other related administrative functions. Our current workforce consists of engineers and general and administrative employees.

We have also recognized depreciation and amortization expense related to office and computer equipment, leasehold improvements and
patents.

We have incurred costs related specifically to the development and design of the Bio-Synfining® and Syntroleum® Process. These costs, which relate primarily to engineers and outside contract services for initial engineering, design, and development, are included in engineering
costs in our consolidated statements of operations.

We have invested $43.5 million of cash into Dynamic Fuels for our portion
of capital expenditures, engineering design, construction and start-up of the plant. In addition, we have made working capital loans of $14.0 million to Dynamic Fuels primarily related to the cost of feedstocks and operating expenses. The
investments and working capital loans are recorded net of our share of Dynamic Fuels losses on our Consolidated Balance Sheets, under Investment in and loans to Dynamic Fuels, LLC.

Commercial and Licensee Projects

On June 22, 2007, we entered into definitive agreements with Tyson to form Dynamic Fuels, to construct and operate facilities in the United States using our Bio-Synfining® Technology. Dynamic Fuels is organized and operated pursuant to the provisions of its Limited Liability Company
Agreement between the Company and Tyson (the LLC Agreement).

The LLC Agreement provides for management and
control of Dynamic Fuels to be exercised jointly by representatives of the Company and Tyson equally with no LLC member exercising control. This entity is accounted for under the equity method and is not required to be consolidated in our financial
statements; however, our share of the Dynamic Fuels net income or loss is reflected in the Consolidated Statements of Operations. Dynamic Fuels has a different fiscal year than us. The Dynamic Fuels fiscal year ends on September 30 and we
report our share of Dynamic Fuels results of operations on a three month lag basis. Our carrying value in Dynamic Fuels is reflected in Investment in and Loans to Dynamic Fuels LLC in our Consolidated Balance Sheets. As of
December 31, 2012, Syntroleums total estimate of maximum exposure to loss as a result of its relationships with this entity was approximately $38,659,000, which represents our equity investment in and loans to this entity, net of
recognized losses and other equity accounting adjustments, in the amount of $38,407,000 and accounts receivable from this entity in the amount of $252,000.

Dynamic Fuels was initially capitalized on July 13, 2007 with $4.25 million in capital contributions from Tyson and $4.25 million in capital contributions from us. Syntroleum contributed an
additional $39.25 million and Tyson contributed an additional $41.25 million in cash capital contributions by December 31, 2012. Each member made $14.0 million in working capital loans to the entity by December 31, 2012. The $14.0 million
non-interest bearing loans do not have a stated term but will be repaid to each partner upon Dynamic Fuels generating sufficient operating cash flow. On February 15, 2013, Syntroleum made an additional $2.3 million working capital loan to
Dynamic Fuels. Tyson made an additional $2.3 million working capital loan (for a total of $4.6 million) on February 19, 2013. We will likely need to fund future working capital needs of Dynamic.

On October 21, 2008, Dynamic Fuels issued tax exempt bonds through the Louisiana Public Facilities Authority in the amount of $100
million at an initial interest rate of 1.3% to fund construction of the plant. The Bonds required a letter of credit in the amount of $100 million as collateral for Dynamic Fuels obligations under the Bonds. Tyson agreed under the terms of the
Warrant Agreement to provide credit support for the entire $100 million Bond issue for which we issued Tyson warrants to purchase 8,000,000 shares of our common stock for $0.01 per share. Tyson exercised the warrants in 2009. The interest rate for
the Bonds is a daily floating interest rate and may change significantly from this amount. In the fourth quarter of 2008, Dynamic Fuels entered into an interest rate swap which had the effect of locking in the interest rate at 2.19% for a period of
5 years with declining swap coverage. This debt funding is in addition to the equity contributions provided by each member.

The renewable diesel produced by Dynamic Fuels is quality tested and meets ASTM D975 standards for diesel. Our jet fuel meets all
petroleum based jet fuel specifications for ASTM D7566, commercial jet fuel, as well as HRJ-5, military jet fuel. The production of our fuel was eligible for the $1.00 tax credit per gallon of renewable diesel under the Energy Independence Act and
Energy Policy Act of 2005 (EPAct) in 2010 and 2011. EPAct further designated a $0.50 per gallon alternative fuels mixture credit (AFMC) for the production of qualified alternative fuels, of which Dynamic Fuels renewable naphtha
qualifies. These tax credits are generated upon mixture with allowed motor vehicle fuels such as petroleum diesel and gasoline. Prior to receiving EPA Part 79 registration on August 16, 2012, Dynamic Fuels renewable naphtha was not
eligible to generate the $.50 per gallon AFMC. These tax credits are typically renewed at the end of each year in what is known as tax extenders bills. These tax credits expired on December 31, 2009 and were not renewed until
November 2010, retroactively for 2010 and extended through December 31, 2011. These tax credits again expired unrenewed on December 31, 2011. On January 3, 2013, President Obama signed into law the American Taxpayer Relief Act of
2012, which reinstated the credits for 2013 and retroactively reinstated the credits for 2012. Dynamic Fuels or its owners will receive a combined total of approximately $23 million for 2012 production from the $1 tax credit and will receive the
alternative fuels mixture credit of $0.50 per gallon for a portion of the renewable naphtha also produced during 2012.



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In 2011, we received approval for registration of our neat renewable diesel from the
Environmental Protection Agency. The registration of the neat renewable diesel allows combustion in regular on-road engines up to 100 percent renewable fuel, which means no blending of petroleum based diesel is required. In 2012, Dynamic Fuels
entered into strategic marketing alliance, commercial off-take and supply chain management agreements with Mansfield Oil Company (Mansfield) to distribute the plants renewable diesel. Mansfield markets and distributes over 2.5 billion
gallons of fueling product per year to thousands of commercial customers across all 50 states and Canada.

The table below
compares per gallon full value renewable diesel market prices, which is calculated as the sum of ULSD diesel price plus 1.7 times RIN to Soy Methyl Ester (SME) biodiesel market pricing, to Gulf Coast Ultra Low Sulphur Diesel market
pricing and to Dynamic Fuels realized diesel price per quarter. Prices do not include transportation cost. Changing prices in crude oil per barrel are also depicted below.



|                                                       |  |                       |        |  |                     |   |       |                     |  |   |                      |  |  |   |       | 
|------------------------------------------------------ |  | --------------------- | ------ |  | ------------------- | - | ----- | ------------------- |  | - | -------------------- |  |  | - | ----- | 
|                                                       |  | QuarterEnded3/31/2012 |        |  | QuarterEnded6/30/12 |   |       | QuarterEnded9/30/12 |  |   | QuarterEnded12/31/12 | 
|DF Realized Diesel Price per gallon                    |  | $                     | 5.50   |  |                     | $ | 4.89  |                     |  | $ | 4.73                 |  |  | $ | 4.16  | 
|Full Value Renewable Diesel Market Price per gallon(1) |  | $                     | 5.63   |  |                     | $ | 5.19  |                     |  | $ | 4.87                 |  |  | $ | 3.99  | 
|SME Biodiesel Market Price per gallon                  |  | $                     | 4.84   |  |                     | $ | 4.59  |                     |  | $ | 4.56                 |  |  | $ | 4.18  | 
|Gulf Coast Ultra Low Sulphur Diesel per gallon         |  | $                     | 3.16   |  |                     | $ | 2.94  |                     |  | $ | 3.07                 |  |  | $ | 3.04  | 
|WTI Spot Crude per barrel                              |  | $                     | 102.88 |  |                     | $ | 93.43 |                     |  | $ | 92.18                |  |  | $ | 87.96 | 



|(1) | OPIS Gulf Coast Ultra Low Sulphur Diesel plus mean OPIS RINs times 1.7 per gallon. No transportation cost included.
|--- | -------------------------------------------------------------------------------------------------------------------

|Note: | Table does not include the $1 per gallon tax credit which was retroactively reinstated in January 2013. Approximately $6.7 million will be included as income during
2013.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Dynamic Fuels began commercial operations in November of 2010. As of September 30, 2012, the plant
had sold 63.0 million gallons of renewable products such as diesel, naphtha, and LPG. Nameplate capacity for the plant is 75.0 million gallons per year. During the year ended September 30, 2012, the plant produced renewable products
at an average rate of 49% of nameplate capacity compared to 35% during the year ended September 30, 2011.

The plant has
experienced mechanical issues, hydrogen supply disruptions and feedstock adulterants all of which have contributed to plant down time and higher than expected operational costs. Upgrades to the feedstock pre-treatment area were completed during
2012. The quality of the feedstock has not impacted the quality of the finished product which has in all cases met or exceeded ASTM standards.

The plant was placed in stand-by mode after completion of a maintenance turnaround in December, 2012, primarily because of economic conditions, including without limitation, falling RIN prices,
uncertainty regarding the extension and retroactive application of federal tax credits, and the high price of feedstocks. Although economic conditions have improved in 2013, the plant remains in stand-by mode as the Company and Tyson have not yet
agreed upon the economic conditions required for plant start-up.

The table below shows average revenue per gallon we receive
for the renewable diesel, naphtha and LPG sold and cost of goods sold and operating expenses and general and administrative expenses. The net operating loss per gallon listed below for the fiscal year ended September 30, 2012, corresponds to
Loss from Operations as reported in the Audited GAAP Dynamic Fuels summarized financial information in Note 4, Investment in and Loans to Dynamic Fuels, LLC.



|                                          |  |                       |       |   |                      |   |       |                      |  |   |                      |   |  |                        |       |   |  |   |       |  
|----------------------------------------- |  | --------------------- | ----- | - | -------------------- | - | ----- | -------------------- |  | - | -------------------- | - |  | ---------------------- | ----- | - |  | - | ----- | -
|                                          |  | Quarter Ended12/31/11 |       |   | Quarter Ended3/31/12 |   |       | Quarter Ended6/30/12 |  |   | Quarter Ended9/30/12 |   |  | Quarter 
Ended12/31/12 |      
|Renewable Products Sold (in millions)     |  |                       | 11.0  |   |                      |   | 8.9   |                      |  |   | 4.7                  |   |  |                        | 10.6  |   |  |   | 5.9   |  
|% of Design Capacity                      |  |                       | 58    | % |                      |   | 47    | %                    |  |   | 25                   | % |  |                        | 56    | % |  |   | 31    | %
|Revenue $/Gal                             |  | $                     | 4.87  |   |                      | $ | 5.23  |                      |  | $ | 5.13                 |   |  | $                      | 3.94  |   |  | $ | 3.35  |  
|Feedstock $/Gal                           |  |                       | 3.83  |   |                      |   | 3.93  |                      |  |   | 3.94                 |   |  |                        | 3.62  |   |  |   | 3.34  |  
|OPEX and General & Administrative per Gal |  |                       | 1.19  |   |                      |   | 1.32  |                      |  |   | 2.19                 |   |  |                        | 1.03  |   |  |   | 1.98  |  
|                                          |  |                       |       |   |                      |   |       |                      |  |   |                      |   |  |                        |       |   |  |   |       |  
|Net Operating Loss per Gal                |  | $                     | (0.15 | ) |                      | $ | (0.02 | )                    |  | $ | (1.00                | ) |  | $                      | (0.71 | ) |  | $ | (1.97 | )
|                                          |  |                       |       |   |                      |   |       |                      |  |   |                      |   |  |                        |       |   |  |   |       |  



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Discontinued Operations

Research and Development.In 2007, we determined we had completed the research and development activities necessary to validate our technology and subsequently have focused on commercialization
activities.

Results of Operations

Consolidated Results for the Years Ended December 31



|                                                   |                |      |        |  |      |   |       |      |  |   |       | 
|-------------------------------------------------- | -------------- | ---- | ------ |  | ---- | - | ----- | ---- |  | - | ----- | 
|Revenues                                           |                | 2012 |        |  | 2011 |   |       | 2010 | 
|                                                   | (in thousands) |     
|Technology                                         |                | $    | 9,600  |  |      | $ | 600   |      |  | $ | 3,600 | 
|Technical Services                                 |                |      | 1,909  |  |      |   | 1,719 |      |  |   | 2,805 | 
|Technical Services from Dynamic Fuels              |                |      | 5,228  |  |      |   | 974   |      |  |   | 2,005 | 
|Royalties from Dynamic Fuels, LLC Plant Production |                |      | 789    |  |      |   | 921   |      |  |   |      | 
|Other                                              |                |      |       |  |      |   |      |      |  |   |      | 
|                                                   |                |      |        |  |      |   |       |      |  |   |       | 
|Total Revenues                                     |                | $    | 17,526 |  |      | $ | 4,214 |      |  | $ | 8,410 | 
|                                                   |                |      |        |  |      |   |       |      |  |   |       | 

Technology Revenue. Technology Revenue was $9,600,000, $600,000 and $3,600,000 for the years ended
December 31, 2012, 2011 and 2010, respectively. During 2012, $9 million was recognized from earned deferred licensee income and in 2010 $3 million was recognized due to the sale and delivery of technology and equipment. We recognized $9 million
of license income in 2012 as a result of the expiration, in 2012, of certain license agreements that had previously given rise to deferred income. In 1997, we entered into these license agreements granting parties the right to use certain of our
patent rights and technical information to design, construct, operate, and maintain licensed facilities. In accordance with Accounting Standards Codification 605 Revenue Recognition (ASC 605), we recorded a portion of the license fees paid to us
pursuant to these license agreements as deferred income because the earnings process was not complete with respect to the license fees so deferred. The portion of the license fees recorded as deferred income were subject to offset and/or indemnity
obligations in the event that the licensees completed construction of facilities prior to the expiration of the license agreements. We recognized the revenue in 2012 when the term of the license agreements expired without site licenses being
executed, since we were under no obligation to return the license fees paid and had no additional obligations to perform under the expired license agreements.

Technical Services Revenue. Revenues from engineering services and continued work on the engineering design and project management of Dynamic Fuels were $7,137,000, $2,693,000 and $4,810,000 for
the years ended December 31, 2012, 2011 and 2010, respectively. In 2012, we recognized $3.7 million in previously-unrecognized technical services revenue from Dynamic Fuels. Pursuant to the terms of a settlement agreement entered into with
Dynamic Fuels and Tyson in June 2012, Dynamic Fuels recognized the obligation to pay us this technical services revenue. Prior to that time, in accordance with ASC 605, we did not recognize this revenue as collection was not reasonably assured. We
expect to continue to earn revenues for engineering services to clients on an individual contract basis in 2013.

Royalty
Revenue. Under the terms of the master license agreement royalties from the renewable fuel production at the Dynamic Fuels plant are earned at the rate of $0.025 per gallon produced adjusted for inflation and are accrued as earned by Syntroleum.



|                                     |                |      |       |  |      |   |       |      |  |   |        | 
|------------------------------------ | -------------- | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ------ | 
|Operating Costs and Expenses         |                | 2012 |       |  | 2011 |   |       | 2010 | 
|                                     | (in thousands) |     
|Engineering                          |                | $    | 2,571 |  |      | $ | 2,236 |      |  | $ | 2,871  | 
|Depreciation and amortization        |                |      | 186   |  |      |   | 200   |      |  |   | 217    | 
|Non-cash equity compensation         |                |      | 508   |  |      |   | 562   |      |  |   | 1,719  | 
|General and administrative and other |                |      | 5,044 |  |      |   | 4,265 |      |  |   | 5,855  | 
|                                     |                |      |       |  |      |   |       |      |  |   |        | 
|Total Operating Costs and Expenses   |                | $    | 8,309 |  |      | $ | 7,263 |      |  | $ | 10,662 | 
|                                     |                |      |       |  |      |   |       |      |  |   |        | 

Engineering Expense. The decrease in engineering expenditures in 2011 compared to 2012 and 2010
primarily results from higher third party analytical lab costs related to client projects in 2012 and 2010.

Non-Cash Equity Compensation. Equity compensation expense for the vesting of stock compensation awards to employees decreased in 2012 and 2011 compared to 2010. These changes in expense primarily
relate to the vesting schedule of performance based awards granted to all employees in 2008. The vesting of these awards is based on achieving certain milestones associated with the Bio-Synfining® Technology project. A majority of the expense associated with these awards was recognized in 2010 and years previous to that. We recognized the remaining amount of
equity compensation for the milestone based awards in 2012. We will not have equity compensation expense in 2013, unless new awards are granted.

General and Administrative and Other.General and administrative expenses were higher in 2012 and 2010 when compared to 2011 primarily related to higher legal fees due to litigation.



|                                           |                |      |         |   |      |   |         |      |  |   |        |  
|------------------------------------------ | -------------- | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------ | -
|Other Income and Expenses                  |                | 2012 |         |   | 2011 |   |         | 2010 | 
|                                           | (in thousands) |     
|Interest Income                            |                | $    | 22      |   |      | $ | 16      |      |  | $ | 31     |  
|Other Income                               |                |      | 6       |   |      |   | 8       |      |  |   | 64     |  
|Loss in equity of Dynamic Fuels, LLC       |                |      | (10,012 | ) |      |   | (13,880 | )    |  |   | (5,628 | )
|Foreign Currency Exchange                  |                |      | (296    | ) |      |   | (17     | )    |  |   | (1,848 | )
|Income Taxes                               |                |      |        |   |      |   |        |      |  |   |       |  
|Income (Loss) From Discontinued Operations |                |      | (38     | ) |      |   | (27     | )    |  |   | 97     |  



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Interest Income. The majority of interest income is generated from investment of our
current cash balances in money market accounts at the current market rates.

Loss in Equity of Dynamic Fuels, LLC.Our
50% share of Dynamic Fuels loss for its year ended September 30, 2012 relates to plant operations with limited production, approximately 49% of plant design, and additional expenses for materials and labor to address feedstock
pre-treatment issues and improve mechanical reliability. Loss from our investment in Dynamic was $4,275,000 and $10,012,000 for the quarter and twelve months ended September 30, 2012, respectively. This compares to a loss of $1,594,000 and
$13,880,000 for the same periods in 2011 and a loss of $2,783,000 and $5,628,000 for the same periods in 2010. The plant was under construction most of 2010. Dynamic Fuels revenues were approximately $167,000,000 with operating expenditures of
approximately $181,000,000 and other expense of $2,100,000 for the twelve months ended September 30, 2012. We report our 50% share of Dynamic Fuels results of operations on a three month lag basis. The retroactive reinstatement of the $1.00
Blenders Tax Credit for 2012 diesel production is estimated to result in a net payment to Dynamic Fuels of approximately $6.7 million. We expect to recognize our share of the tax credit in the first quarter of 2013.

Foreign Currency Exchange. Changes in the foreign currency exchange are due to fluctuation in the value of the Australian dollar
compared to the U.S. Dollar. The foreign currency changes result from translation adjustments from our license with the Commonwealth of Australia which is denominated in Australian dollars. These changes have no cash impact.

Income (Loss) from Discontinued Operations.Changes in income from discontinued operations primarily resulted from lower than
expected dismantlement costs in 2010 resulting in a gain from reducing our asset retirement liability associated with the Catoosa Demonstration Facility to zero.

Liquidity and Capital Resources

General

As of December 31, 2012, we had $15,909,000 in cash and cash equivalents. Our current liabilities totaled $1,108,000 as of
December 31, 2012.

Our business plan over the next several years includes potential investments in additional plants and
we will need to raise capital to accomplish this plan. We expect to obtain funding through debt or equity financing, joint ventures, license agreements and other strategic alliances. If we obtain additional funds by issuing equity, dilution to
stockholders may occur. In addition, preferred stock could be issued without stockholder approval, and the terms of our preferred stock could include dividend, liquidation, conversion, voting and other rights that are more favorable than the rights
of the holders of our common stock. There can be no assurance as to the availability or terms upon which such financing might be available.

We expect that we will fund additional short-term working capital needs of Dynamic Fuels through working capital loans in 2013. As stated previously, we have contributed cash in the amount of $43.5
million to the capital of Dynamic Fuels since inception, have loaned Dynamic Fuels $14.0 million and have receivables due from Dynamic Fuels of $252,000. Although management remains positive about the future of Dynamic Fuels, if Dynamic Fuels fails
to achieve profitability, this entire investment could be subject to loss.

On February 15, 2013, Syntroleum made an
additional $2.3 million working capital loan to Dynamic Fuels. Tyson made an additional $2.3 million working capital loan (for a total of $4.6 million) on February 19, 2013.

As of the date of this Report on form 10-K, the Dynamic Fuels plant is in stand-by mode pending agreement by Tyson and the Company on the
required economic conditions for start-up. As start-up costs may require each of us to make additional loans to Dynamic Fuels, receipt of certain tax credits, which were reinstated on January 3, 2013, may play a role in start-up timing.

On March 1, 2013, Syntroleum received $5,798,000 from sales proceeds of its nominal two b/d pilot plant located in
Tulsa, Oklahoma.

If we are unable to generate funds from operations, our need to obtain funds through financing activities
will be increased. The decline in our stock price and related market capitalization has limited, however, our ability to raise capital through the sale of shares of common stock from our shelf registration statement.

Cash Flows

2012 vs.
2011

Cash flows used in operations was $3,539,000 during the year ended December 31, 2012 compared to cash flows used
in operations of $4,433,000 during the year ended December 31, 2011. The decrease in cash flows used in operations in 2012 primarily results from the collection of Dynamic Fuels receivables in 2012.



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Cash flows used in investing activities were $3,017,000 during the year ended
December 31, 2012 compared to $9,051,000 during the year ended December 31, 2011. We made an equity contribution of $3,000,000 to Dynamic Fuels in 2012 compared to investment in and loans of $9,000,000 in 2011. We may be required to
provide additional working capital loans or investments to the plant in 2013 if additional cash is needed.

Cash flows used in
financing activities during the year ended December 31, 2012 was $136,000 compared to cash flows provided by financing activities of $23,572,000 in 2011. The cash flows provided by financing activities in 2011 primarily relates to the public
offering in July of 15,900,000 shares of our common stock and accompanying warrants resulting in net proceeds of $23,538,000.

2011 vs. 2010

Cash flows used in operations was $4,433,000 during the year ended December 31, 2011 compared to cash flows used in operations of $1,112,000 during the year ended December 31, 2010. The increase
in cash flows used in operations in 2011 primarily results from the collection of $3,000,000 in revenues from technology transfer agreements in 2010 and not collecting Dynamic Fuels receivables in 2011.

Cash flows used in investing activities were $9,051,000 during the year ended December 31, 2011 compared to $21,264,000 during the
year ended December 31, 2010. We extended a working capital loan of $9,000,000 to Dynamic Fuels in 2011 compared to our 2010 equity investment of $16,250,000 and working capital loan of $5,000,000.

Cash flows provided by financing activities during the year ended December 31, 2011 was $23,572,000 compared to $9,877,000 in 2010.
The cash flows provided by financing activities in 2011 primarily relates to the public offering in July of 15,900,000 shares of our common stock and accompanying warrants resulting in net proceeds of $23,538,000. The cash provided by financing
activities in 2010 is primarily due to net proceeds received from sales of 1,135,374 shares of our common stock to Fletcher at a price of $2.64 per share and sales of 3,948,374 shares of our common stock to Energy Opportunity Ltd at a stock price of
approximately $1.77.

Contractual Obligations

The following table sets forth our contractual obligations as of December 31, 2012:



|                             |       |                                      |     |                 |  |   |           |  |  |           |     |  |              |   |    |  |  |   |    | 
|---------------------------- | ----- | ------------------------------------ | --- | --------------- |  | - | --------- |  |  | --------- | --- |  | ------------ | - | -- |  |  | - | -- | 
|Contractual Obligations      |       | Payments Due by Period(In
thousands) |    
|                             | Total |                                      |     | Less than 1year |  |   | 1-3 years |  |  | 4-5 years |     |  | After 5years |  
|Operating Lease Obligations  |       | $                                    | 199 |                 |  | $ | 101       |  |  | $         | 50  |  |              | $ | 18 |  |  | $ | 30 | 
|Asset Retirement Obligations |       |                                      | 603 |                 |  |   |          |  |  |           | 603 |  |              |   |   |  |  |   |   | 
|                             |       |                                      |     |                 |  |   |           |  |  |           |     |  |              |   |    |  |  |   |    | 
|Total                        |       | $                                    | 802 |                 |  | $ | 101       |  |  | $         | 653 |  |              | $ | 18 |  |  | $ | 30 | 
|                             |       |                                      |     |                 |  |   |           |  |  |           |     |  |              |   |    |  |  |   |    | 

Our operating leases include leases for corporate headquarters, demonstration plants and software.

On March 1, 2013 Syntroleum sold its pilot plant for $5,798,000. Syntroleum had no carrying value for the pilot plant
since all costs incurred had been expensed as research and development. As such, the total amount of proceeds will be recognized as a gain in the first quarter of 2013. In connection with this sale, the previously recognized asset retirement
obligation of $603,000, reported in Noncurrent Liabilities of Discontinued Operations in the Consolidated Balance Sheet, will also be recognized as a gain in the first quarter of 2013. In addition, the associated lease was cancelled.

We have entered into employment agreements, which provide severance cash benefits to several key employees totaling
approximately $2,208,000 at December 31, 2012. The expense is not recognized until an employee is severed.

We as licensor, entered into a Bio-Synfining Master License Agreement on June 22, 2007, with Dynamic Fuels, LLC. Under this license agreement at the request of the licensee we must execute a Site
License Agreement in favor of licensee for licensees use of our Bio-Synfining® Technology. On
June 27, 2012, we entered into a Site License Agreement with Dynamic Fuels for the use of our
Bio-Synfining® Technology at the Geismar plant and the process guarantee and performance test provisions
contained therein were waived and deemed unnecessary by Dynamic Fuels. For purposes of the Warrant Agreement dated June 22, 2007 between Syntroleum and Tyson Foods, Inc., the First Plant Commercial Operation Date as defined in the Warrant
Agreement was deemed to be June 27, 2012.

Equity Issuances

Common Stock Offering. On July 6, 2011, the Company closed the issuance and sale of 15,900,000 shares of its common stock and
accompanying warrants to purchase a total of 7,950,000 shares of common stock. A combination of one share of common stock and a five year warrant to purchase 0.5 shares of common stock was sold in the offering for a combined public offering price of
$1.58 per share, less underwriting discounts and commissions payable by the Company. The black-scholes valuation of the warrants granted is $11,614,000. The underwriter, JMP Securities LLC, purchased the common stock and warrants at a discounted
price of $1.49 per combination, representing a 5.7% discount to the public offering price. Cash proceeds received by the Company, after the payment of underwriter commission and expenses and offering expenses, were approximately $23,538,000.



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Fletcher International Ltd. The Company and Fletcher entered into a Securities
Purchase Agreement (the Securities Purchase Agreement) dated October 14, 2009 whereby Fletcher could purchase up to $12,000,000 of our common stock at a price of approximately $2.6423 per share. With each common stock purchase,
Fletcher also received a warrant, exercisable for a period of six years, to purchase the number of shares of our common stock equal to the product of 1.25 times the number of shares of our common stock purchased, with an exercise price of $3.30. On
October 14, 2009, December 30, 2009 and April 20, 2010 Fletcher purchased a total of 4,541,497 shares of our common stock. Warrants were issued with each stock purchase to purchase a total of 5,676,871 shares of our common stock
at an exercise price of $3.3029 per share. The warrants expire between October 14, 2015 and April 20, 2016. The warrants were deemed to have a fair value of approximately $10.2 million at the date of issuance and were recorded as
additional paid-in capital. The Company received net proceeds of approximately $11.6 million, after deducting fees and expenses of the offering payable by us.

Fletcher is subject to an ownership limitation of 4.95% of the outstanding shares of common stock (Ownership Limitation), under which Fletcher is prohibited from consummating any subsequent
closing or exercising any warrant where such closing or exercise would cause Fletcher to exceed the Ownership Limitation, or from otherwise exceeding the Ownership Limitation through other avenues, including the purchase of shares in the public
market.

Tyson.As an incentive to Tyson for entering into the Dynamic Fuels joint venture, Tyson received warrants to
buy the Companys common stock. The warrants are allocated in three tranches. The first tranche of 4.25 million shares was awarded upon signing of the LLC Agreement, Feedstock and Master License Agreements in June 2007. The Warrant
Agreement provides that the second tranche of 2.5 million shares will be issued upon sanctioning of the second plant and the third tranche of 1.5 million shares will be issued upon sanctioning of the third plant, provided that Tyson has at
least a 10% interest in Dynamic Fuels. The exercise price of the first tranche of 4.25 million warrants is $2.87 per share, which was the ten-day average closing price prior to the signing of the above referenced agreements on June 22,
2007. The exercise price of the second and third tranches of warrants will be the ten-day average closing price prior to the sanctioning of plants 2 or 3. Vesting requires that if on the anniversary of the first plant commercial operations date,
Tyson remains at least a 10% equity owner in Dynamic Fuels (in the case of the first tranche) and in the applicable plant (in the case of the second and third tranches), and that each plant has commenced commercial operation. Commercial operation is
defined as the date on which the Plant achieves operations for commercial purposes after the completion of commissioning and satisfaction of performance tests. The first plant commercial operation date was deemed to be June 27, 2012. Warrants
will expire on June 27, 2015. If 25% or more of the project cost for the third plant is debt financed, then the third warrant tranche will not vest. In the event that Tyson owns a 90% or greater interest in Dynamic Fuels the number of shares
subject to the second and third warrant tranche doubles subject to a limitation that Tyson will not receive pursuant to all tranches warrants for stock equal to or more than 20% of the outstanding shares of Syntroleum common stock. In the event
Tyson defaults by not paying its capital contributions to the plant, Tyson loses the warrants for such plant. These warrants are accounted for in accordance with FASB ASC Topic 505 Equity-Based Payments to Non-Employees. Warrants granted to
non-employees that are tied to performance criteria are expensed at the time the performance goals are met.

On June 30,
2008, the Company and Tyson entered into a Warrant Agreement providing for the issuance of warrants to Tyson to purchase shares of the Companys common stock in exchange for credit support relating to the obligations of Dynamic Fuels. Dynamic
Fuels received approval from the Louisiana State Bond Commission to issue up to $100 million of certain Gulf Opportunity Tax Exempt Bonds originated by the Louisiana Public Facilities Authority (the Bonds). On October 21, 2008 the
issuance of the Bonds occurred and required a letter of credit in the amount of $100 million as collateral for Dynamic Fuels obligations under the Bonds. Tyson agreed under the terms of the Warrant Agreement to provide credit support for the
entire $100 million Bond issue for which we issued Tyson warrants to purchase 8,000,000 shares of our common stock for $0.01 per share. The warrants were exercised on April 16, 2009. These warrants are accounted for in accordance with FASB ASC
Topic 505 Equity-Based Payments to Non-Employees. The measurement date is the date of issuance, October 21, 2008. We valued the warrants at $8.6 million and have recorded them as an additional cost of our Investment in and Loans to Dynamic
Fuels on our Consolidated Balance Sheets. This additional cost in our investment results in a difference between our cost and our share of the underlying equity of Dynamic Fuels. We amortize the basis difference to Earnings or Loss from Dynamic
Investment in our Consolidated Statement of Operations over the life of the Bonds, 25 years.

Pursuant to two registration
rights agreements, we have granted Tyson demand and piggyback registration rights with respect to the shares of common stock issuable pursuant to the warrants.

New Accounting Pronouncements

See Note 1 Summary of Significant
Accounting Policies of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data for a full description of recent accounting pronouncements including the respective expected dates of adoption
and effects on Consolidated Balance Sheets and Consolidated Statements of Income.



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Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates
and use assumptions that affect reported amounts. We believe that the following items represent our critical accounting policies and estimates:

Revenue Recognition. We recognize revenues from technical services provided as such services are rendered. We recognize revenue for royalty fees upon production of finished product by the licensee.

We recognized revenues from the transfer of technology documentation to customers or through licensing structures. Any
deposits or advance payments for the technology documentation is recorded as deferred revenue in the consolidated balance sheets until recognized as revenue in the consolidated statement of operations. The Company recognizes revenue on the transfer
of technology documentation upon the physical transfer of the technology documentation by the Company to the customer pursuant to the terms of the specific agreement.

Stock-Based Compensation. We account for employee stock-based compensation in accordance with FASB ASC Topic 718, Compensation  Stock Compensation. Under the fair value recognition provisions
of this statement, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable vesting period of the stock award (generally three years) using the straight line
method.

Non-Employee Stock-Based Compensation.We also grant stock-based incentives to certain non-employees. These
stock based incentives are accounted for in accordance with FASB ASC Topic 505 Equity-Based Payments to Non-Employees. Stock awards that are tied to performance criteria are expensed at the time the performance goals are met.

Asset Retirement Obligations.We follow FASB ASC Topic 410, Asset Retirement and Environmental Obligations, which requires
entities to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. The standard requires that we record the
discounted fair value of the retirement obligation as a liability at the time the plants are constructed. The asset retirement obligations consist primarily of costs associated with the future plant dismantlement of our pilot plant. As the pilot
plant is directly related to research and development activities and has been expensed accordingly, no corresponding amount is capitalized as part of the related propertys carrying amount. The liability accretes over time with a charge to
accretion expense.

On March 1, 2013 Syntroleum sold its pilot plant for $5,798,000. Syntroleum had no carrying value for
the pilot plant since all costs incurred had been expensed as research and development. As such, the total amount of proceeds will be recognized as a gain in the first quarter of 2013. In connection with this sale, the previously recognized asset
retirement obligation of $603,000, reported in Noncurrent Liabilities of Discontinued Operations in the Consolidated Balance Sheet, will also be recognized as a gain in the first quarter of 2013.

Critical Estimates.The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Some of the more significant estimates made by management include, but are not limited to, the valuation of stock-based compensation, estimates for accrued liabilities and estimates for
asset retirement obligations. Actual results could differ from these estimates.

Item 7A. Quantitative and
Qualitative Disclosures about Market Risk.

Prices for crude oil, natural gas, coal, vegetable oils and
fats, RINs and other commodities create a market risk for margin economics associated with our Technologies because the feedstocks we use and the products we produce competed in the petroleum markets. Higher than anticipated operating expense,
downtime or both could also adversely affect operating results. Prices for oil, natural gas, coal, biomass, fats, greases, vegetable oils, RINs and refined products are subject to wide fluctuation in response to relatively minor changes in the
supply and demand, market uncertainty, mandate levels and a variety of additional factors beyond our control.

We expect that
we will need to raise substantial additional capital to accomplish our business plan over the next several years. We expect to obtain additional funding through debt or equity financing in the capital markets, joint ventures, license agreements and
other strategic alliances, as well as various other financing arrangements. If we obtain additional funds by issuing equity securities, dilution to stockholders may occur. In addition, preferred stock could be issued in the future without
stockholder approval, and the terms of our preferred stock could include dividend, liquidation, conversion, voting and other rights that are more favorable than the rights of the holders of our common stock. There can be no assurance as to the
availability or terms upon which such financing and capital might be available.



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Foreign exchange risk currently relates to non-cash deferred revenue, a portion of which is
denominated in Australian dollars. Financial statement assets and liabilities may be translated at prevailing exchange rate and may result in gains or losses in current income. Monetary assets and liabilities are translated into United States
dollars at the rate of exchange in effect at the balance sheet date. Transaction gains and losses that arise from exchange rate fluctuations applicable to transactions denominated in a currency other than the United States dollar are included in the
results of operations as incurred. The portion of deferred revenue denominated in Australian currency was U.S. $15,556,500 at December 31, 2012. The deferred revenue is converted to U.S. dollars for financial reporting purposes at the end of
every reporting period. To the extent that conversion results in gains or losses, such gains or losses will be reflected in our statements of operations. The exchange rate of the Australian dollar to the United States dollar was $1.04 and $1.02 at
December 31, 2012 and December 31, 2011, respectively.

We do not have any purchased futures contracts or any
derivative financial instruments, other than warrants issued to purchase common stock at a fixed price in connection with private placements and other equity offerings.

Item 8. Financial Statements and Supplementary Data

Our consolidated financial statements, together with the report thereon of HoganTaylor LLP dated March 15, 2013, are set forth on pages F-1 through F-17 hereof. See Item 15 for an index to our
consolidated financial statements.

Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures.In accordance with Exchange Act Rules 13a-15 and 15d-15, we carried out an
evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by
this report. Based on that evaluation, our Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2012 to provide reasonable assurance that information
required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.

Changes in Internal Controls.There has been no change in our internal control over financial reporting that occurred during the
three months ended December 31, 2012 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

Managements Report on Internal Control Over Financial Reporting.Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such
term is defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Financial Officer, we conducted an evaluation of the
effectiveness of our internal control over financial reporting as of December 31, 2012 based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on our evaluation under the criteria set forth in Internal Control-Integrated Framework, our management believes that our internal control over financial reporting was effective as of December 31, 2012.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

HoganTaylor LLP, an independent registered public accounting firm that audited our financial statements included in this Annual Report on
Form 10-K, has issued an attestation report of our internal control over financial reporting. Such attestation is included below.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and
Shareholders

Syntroleum Corporation

We have audited Syntroleum Corporations (a Delaware Corporation) internal control over financial reporting as of December 31, 2012, based on
criteria established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Syntroleum Corporations management is responsible for maintaining effective
internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Managements Report on Internal Control Over Financial Reporting. Our
responsibility is to express an opinion on Syntroleum Corporations internal control over financial reporting based on our audit.



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We conducted our audit 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 effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included
performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A companys internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (c) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Syntroleum Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2012, based on criteria established in Internal
ControlIntegrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the consolidated balance sheets of Syntroleum Corporation and subsidiaries as of December 31, 2012 and 2011, and the related consolidated statements of operations, stockholders equity (deficit) and cash
flows for each of the three years in the period ended December 31, 2012 and our report dated March 15, 2013, expressed an unqualified opinion.

/s/ HOGANTAYLOR LLP

Tulsa, Oklahoma

March 15, 2013

Item 9B. Other Information

None.



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PART III

Item 10. Directors, Executive Officers and Corporate Governance

Our certificate of incorporation divides the board of directors into three classes. Our bylaws provide for a board of not less than three
and no more than 11 directors with the exact number of directors in each class to be fixed by our board. Our board has determined that the total number of directors on the board at this time shall be six and that two directors shall be in each of
Class A, B and C. Directors hold office for staggered terms of three years (or less if they were appointed to the board between annual meetings to fill a vacancy). One of three classes is elected at each years annual meeting to succeed
the directors of that class whose terms are expiring. The terms for the directors of Classes B, C and A expire at the annual meeting of stockholders in 2013, 2014 and 2015, respectively.

2013  Class B Directors

Name and Business Experience



|                  |  |     |    |  |  | 
|----------------- |  | --- | -- |  |  | 
|                  |  | Age |   
|P. Anthony Jacobs |  |     | 71 | 

Mr. Jacobs has served as a director since November 1995. Mr. Jacobs also served as the Chairman
of the board of SLH Corporation, a predecessor to the company, from December 1996 through the closing date of the merger of Syntroleum Corporation into SLH Corporation in August 1998. Mr. Jacobs retired in 1998. Previously he served as
President and Chief Executive Officer of Lab Holdings, Inc., a company principally engaged in the laboratory testing business, from September 1997 until August of 1999 when Lab Holdings merged with Lab One, Inc. From 1990 to 1993, he served as
Executive Vice President and Chief Operating Officer of Seafield Capital Corporation, and from May 1993 to September 1997, he served as President and Chief Operating Officer of Seafield Capital Corporation. Mr. Jacobs holds a B.A. and an M.B.A.
from the University of Kansas and is also a Chartered Financial Analyst. The board selected Mr. Jacobs to serve as a director because he brings extensive financial expertise in both the public and private markets.



|                |  |  |    | 
|--------------- |  |  | -- | 
|James R. Seward |  |  | 60 | 

Mr. Seward has served as a director since December 1988. Mr. Seward also served as the
President, Chief Executive Officer and director of SLH Corporation from February 1997 through the closing date of the merger of Syntroleum Corporation into SLH Corporation in August 1998. Mr. Seward is currently a private investor.
Mr. Seward presently serves as a director of Brookdale Senior Living, Inc, a company traded on the New York Stock Exchange and RBC Funds, a family of publicly traded mutual funds. From 1990 to September 1997, Mr. Seward served as Chief
Financial Officer and a director of Seafield Capital Corporation. From 1990 to May 1993, he served as Senior Vice President of Seafield Capital Corporation, and from May 1993 to September 1997, he served as Executive Vice President. Mr. Seward
holds a B.A. from Baker University and an M.B.A. in Finance and a M.P.A. from the University of Kansas and is also a Chartered Financial Analyst. The board selected Mr. Seward to serve as a director because it believes he possesses valuable
financial expertise, including extensive experience with capital markets transactions and investments in both public and private companies.

2014  Class C Directors

Name and Business Experience



|                   |  |     |    | 
|------------------ |  | --- | -- | 
|                   |  | Age |   
|Alvin R. Albe, Jr. |  |     | 59 | 

Mr. Albe has served as a director since December 1988. Mr. Albe is currently a Senior Advisor
to TCW Group, Inc. (TCW), an investment management firm. Prior to joining TCW in 1991, Mr. Albe was President of Oakmont Corporation, a family office that administers and manages assets for high net worth individuals and their
families. Mr. Albe was associated with Oakmont Corporation from 1982 to 1991. Prior to 1982, Mr. Albe was Manager of Accounting at McMoRan Oil and Gas Co., and a Certified Public Accountant with Arthur Andersen & Co. in New
Orleans. Mr. Albe graduated from the University of New Orleans with a B.S. in Accounting. The board selected Mr. Albe to serve as a director because of his extensive financial background in investments and accounting standards.



|               |  |  |    | 
|-------------- |  |  | -- | 
|Edward G. Roth |  |  | 56 | 



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Mr. Roth has been our President and Chief Executive Officer since November 19,
2007 and a director since March 16, 2007. Mr. Roth joined Syntroleum in July 2004 as our Senior Vice President of Projects. In April 2005, Mr. Roth was named our Executive Vice President of Engineering and Chief Technology Officer and
in March 2007 was appointed as our President. Prior to joining Syntroleum in July 2004, Mr. Roth was employed by Petrofac Resources International, serving in varying positions from December 1997 to July 2004. In July 2003, Mr. Roth served
as President and Chief Operating Officer of Petrofac LLC, a company involved in all facets of turnkey engineering, procurement and construction in refining and gas processing. From February 1994 to December 1997, Mr. Roth was Vice President of
Engineering & Operations at Zilkha Energy. From December 1979 to February 1994, he was employed by ARCO in various capacities, including drilling production operations and business development both domestically and internationally.
Mr. Roth has a B.S. in Petroleum Engineering from Texas A&M University and a M.B.A. in Finance from the University of Chicago. Mr. Roth is a certified professional engineer. Mr. Roth was selected by the board for his extensive
background in the energy industry in engineering, procurement and construction in refining and gas processing as well as for his engineering technical expertise and executive experience.

2015  Class A Directors

Name and Business Experience



|                  |  |     |    | 
|----------------- |  | --- | -- | 
|                  |  | Age |   
|Frank M. Bumstead |  |     | 71 | 

Mr. Bumstead has been a director since May 1993. He has served as the Chairman of Flood, Bumstead,
McCready & McCarthy, Inc., a financial and business management firm, since 1989 and as a managing member of FBM Consults, LLC since January 1, 2001. Mr. Bumstead presently serves as a director and Chairman of the Compensation
Committee of Brookdale Senior Living, Inc.; a New York Stock Exchange listed company, director of United Supermarkets, Inc.; director of Nashville Wire Products, Inc.; a trustee of The Memorial Foundation and chairman of audit, finance and
investment committees for the Country Music Association, Inc. Mr. Bumstead holds a B.S. in Business Administration from Southern Methodist University and a Masters of Business Management from Vanderbilt Owen Graduate School of Management. The
board selected Mr. Bumstead to serve as a director because of his experience in financial management and his board experience with other public companies.



|                      |  |  |    | 
|--------------------- |  |  | -- | 
|Robert B. Rosene, Jr. |  |  | 59 | 

Mr. Rosene has been our Chairman of the board since November 19, 2007 and a director since
March 1985. Mr. Rosene has been President of Seminole Energy Services, L.L.C., a natural gas marketing and gathering company, since 1998. Effective January 1, 2013 Mr. Rosene will be retiring as President and CEO but will remain as
Chairman of the Board of Managers of Seminole Energy Services. From 1984 to August 1998, he was Vice President of Boyd Rosene and Associates, Inc., a natural gas consulting and marketing firm which he co-founded. From 1976 to 1984, he was employed
with Transok Pipeline Company, where he served in various positions, including Manager of Rates and Contract Administration and director of Gas Acquisitions. In 1987, Mr. Rosene co-founded MBR Resources, an oil and gas production company with
operations in Arkansas, New Mexico, Oklahoma and Texas. Mr. Rosene holds a B.A. in Accounting from Oklahoma Baptist University. The board selected Mr. Rosene for his expansive knowledge of the oil and gas industry and macro-economic global
conditions and his ability to bring a unique and valuable perspective to the board.

There are no family relationships, of
first cousin or closer, among our directors and executive officers, by blood, marriage or adoption.

Director Meetings and Compensation

During 2012, the board of directors held a total of 12 regular meetings and three special meetings and took action by
unanimous written consent on two occasions. No director attended fewer than 75 percent of the aggregate of board meetings and meetings of any committee on which he served in 2012.

We do not pay our directors a cash retainer. All directors are reimbursed for their travel and other expenses involved in attendance at
board and committee meetings.

Under the 2005 Stock Incentive Plan, non-employee directors are eligible to receive grants of
options to purchase shares of our common stock or awards of common stock or restricted stock. On January 1 of each year, non-employee directors received annual grants of a number of shares of our common stock determined by dividing $50,000 by
the closing price of our common stock on the last trading day of the previous year. We granted 52,083 shares to each of our directors on January 1, 2012 at a grant date stock price of $0.96 and expect to continue the annual grant of common
stock to non-employee directors as part of their compensation for service on the board. Mr. Robert B. Rosene, Jr., Chairman of the board received an additional grant of 104,167 shares of common stock at a grant date price of $0.96 in
recognition of his additional services as Chairman of the board.

Employees who are directors are not paid any fees or
additional remuneration for their services as members of the board or any committee of the board.



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Director Compensation Table 2012



|                      |  |                              |  |                |         |  |                 |  |   |                                         |  |  |                                                                       |  |  |                           |   |  |          |  |   |  |  |  |         | 
|--------------------- |  | ---------------------------- |  | -------------- | ------- |  | --------------- |  | - | --------------------------------------- |  |  | --------------------------------------------------------------------- |  |  | ------------------------- | - |  | -------- |  | - |  |  |  | ------- | 
|Name                  |  | FeesEarned orPaid inCash ($) |  | StockAwards($) |         |  | OptionAwards($) |  |   | Non-EquityIncentivePlanCompen-sation($) |  |  | Change inPension 
Value& 
NonqualifiedDeferredCompensationEarnings($) |  |  | All 
OtherCompensation($) |   |  | Total($) | 
|(a)                   |  | (b)                          |  | (c)            |         |  | (d)             |  |   | (e)                                     |  |  | (f)                                                                   |  |  | (g)                       |   |  | (h)      | 
|Alvin R. Albe, Jr     |  |                              |  |                | 50,000  |  |                 |  |  |                                         |  |  |                                                                      |  |  |                           |  |  |          |  |  |  |  |  | 50,000  | 
|Frank M. Bumstead     |  |                              |  |                | 50,000  |  |                 |  |  |                                         |  |  |                                                                      |  |  |                           |  |  |          |  |  |  |  |  | 50,000  | 
|P. Anthony Jacobs     |  |                              |  |                | 50,000  |  |                 |  |  |                                         |  |  |                                                                      |  |  |                           |  |  |          |  |  |  |  |  | 50,000  | 
|Robert B. Rosene, Jr. |  |                              |  |                | 150,000 |  |                 |  |  |                                         |  |  |                                                                      |  |  |                           |  |  |          |  |  |  |  |  | 150,000 | 
|James R. Seward       |  |                              |  |                | 50,000  |  |                 |  |  |                                         |  |  |                                                                      |  |  |                           |  |  |          |  |  |  |  |  | 50,000  | 

At December 31, 2012 our non-employee directors held unexercised options to purchase common stock as
follows: Alvin R. Albe, Jr.16,812; Frank M. Bumstead16,812; P. Anthony Jacobs6,408; Robert B. Rosene, Jr.16,812; James R. Seward2,242.

Stock Ownership Guidelines for Directors

We do not have a set guideline
for director stock ownership. We do, however, encourage stock ownership by our directors and all compensation for services as a director is paid by us in shares of our common stock. As of March 1, 2013 board members beneficially owned
approximately 6% of our issued and outstanding common stock.

Corporate Governance

We have adopted a written Code of Ethics that is applicable to our directors, chief executive officer, principal financial officer,
controller and other executive officers. A copy of our Code of Ethics, Audit Committee Charter, and Nominating and Compensation Committee Charters is available on our website at www.syntroleum.com. Investors may request a copy of any of these
documents at no charge by writing to Karen L. Power, Senior Vice President, Principal Financial Officer and Corporate Secretary, Syntroleum Corporation, 5416 S. Yale, Suite 400, Tulsa, OK 74135. We will disclose any amendments to the Code of Ethics
and any waivers to the Code of Ethics for directors and executive officers by posting such information on our website or in a current report on Form 8-K filed with the SEC.

Executive Officers of the Company

The following are our executive officers
as of March 01, 2013.



|               |  |     |    |  |          |                                                      
|-------------- |  | --- | -- |  | -------- | -----------------------------------------------------
|Name           |  | Age |    |  | Position
|Edward G. Roth |  |     | 56 |  |          | Chief Executive Officer, President and Director      
|Karen L. Power |  |     | 61 |  |          | Senior Vice President and Principal Financial Officer

For biographical information on Mr. Roth, please see, Class C Directors.

Karen L. Poweris a Senior Vice President and our Principal Financial Officer, having joined our company in June 2007.
Mrs. Power was previously Executive Vice President, Chief Financial Officer and Cashier for Summit Bank from 2001 to 2007, Senior Vice President, Chief Financial Officer and Cashier for Federal BankCentre from 1998-2001, Vice President and
Chief Financial Officer for Community Care HMO, Inc. from 1994-1997, and Senior Vice President and Chief Financial Officer for Western National Bank from 1984-1994. Prior to 1984 Mrs. Power served in various tax positions with Arthur
Andersen & Co., GRA, Inc. and Commerce Bank. Mrs. Power is a certified public accountant and received her Bachelor of Science in Business Administration from the University of Missouri-Kansas City, Missouri.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934 requires our directors, executive officers and owners of 10% or more of our common stock to file with the SEC and the Nasdaq Stock Market initial
reports of ownership and reports of changes in ownership of common stock. Based solely on a review of the copies of reports furnished to us and representations that no other reports were required, we believe that all of our directors, executive
officers and 10% or more stockholders during the fiscal year ended December 31, 2012 complied on a timely basis with all applicable filing requirements under Section 16(a) of the Exchange Act.



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Audit Committee and Audit Committee Expert

The members of our Audit Committee are Mr. Albe, Mr. Rosene, Mr. Bumstead, Mr. Jacobs and Mr. Seward.
Mr. Albe is the audit committee financial expert under SEC rules and meets the Nasdaqs professional experience requirements.

Each other member of the Audit Committee believes that he also meets the requirements for being considered an Audit Committee financial expert under applicable rules and regulations.

Item 11. Executive Compensation

COMPENSATION DISCUSSION AND ANALYSIS

Executive Compensation Philosophy and Objectives

The objective of
Syntroleums executive compensation policy is to attract, retain and motivate highly qualified individuals and to align their interests with our shareholders. We do this by offering competitive, interrelated compensation components that are
designed to reward them for results that have been identified as important factors in enhancing shareholder value. The tables that you find in this Annual Report on Form 10-K contain specific information about the compensation earned or paid in
2012, 2011 and 2010 to Edward G. Roth and Karen L. Power, whom we refer to as our named executive officers as of December 31, 2012.

The Board has considered our shareholders vote on the Say on Pay issues and, as voted by a majority of the shareholders, has determined to submit the question of management compensation to its
shareholders annually.

Role of the Nominating and Compensation Committee and Management

The Nominating and Compensation Committee determines cash bonuses and stock option and restricted stock awards and changes in remuneration
to our executive officers. Bonuses and grants of stock options and restricted stock are individually determined and administered by the nominating and compensation committee. The Chief Executive Officer works with the Nominating and Compensation
Committee in the design of the plans and makes recommendations to the committee regarding the salaries and bonuses of executive officers that report directly to him as well as the salaries and bonuses and the award of options and restricted stock to
other employees.

Our executive compensation guidelines, as established by the Nominating and Compensation Committee, are
designed to pay a base salary generally measured by other peer group companies, as adjusted to take into account differences in revenue size and for individual performance. The Nominating and Compensation Committee has determined Syntroleums
new 2012 peer group to more closely match our company in the renewable products arena and includes Pacific Ethanol, Inc., Synthesis Energy Systems, Inc., BioFuel Energy Corp, Renewable Energy Group, Inc., Future Fuels Corp., Solazyme, GEVO, Amyris,
KiOR and Codexis. Mrs. Power and Mr. Roth both received increases in base salary in January 2012. Mr. Roths salary is paid under the terms of an employment agreement described below.

Incentive compensation takes the form of equity and cash. As part of this process, the Nominating and Compensation Committee recommends
the Chief Executive Officers incentive compensation award to the board for approval and reviews and approves the awards recommended by the Chief Executive Officer with respect to the other executive officer. Such awards reward participants for
achieving established cost targets and prosecuting the business of the company, reward execution of the business plan and success in execution beyond budgeted or expected values, and reward performance related to specific commercialization projects.
These awards can take the form of cash or Syntroleum Corporation restricted stock or options with performance vesting schedules. In 2012, 2011 and 2010, these awards took the form of cash. All cash or equity grants to named executive officers are
approved by the Nominating and Compensation Committee.

Typically, increases in base compensation occur upon significant
changes in job responsibility or notable changes in the job market. Normally, previous compensation actions do not influence current years awards or grants except in the case of awards intended to cover multi-year periods.



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Elements of Compensation Plan

Our compensation plan for key executives includes long-term milestone based incentives. We believe that by making milestone based
incentives the basis for incentive awards provides the board with a means to emphasize and monitor managements progress towards our key strategic goals. Based on the Nominating and Compensation Committees reviews of executive
compensation, it was determined that the plan would be primarily comprised of base pay, incentive compensation and long-term incentive compensation. Base pay would be comprised of an executives salary, while incentive compensation consists of
cash bonuses or immediately vested stock awards. Long-term incentive compensation is meant to reward multi-year achievements with awards given in stock options and restricted stock with vesting based on the occurrence of Company project related
intermediate milestones. By providing these three pieces of compensation it was determined that incentives would be in place to achieve strategic short-term milestones, while the long-term incentive compensation would be used to reinforce the sense
of shared purpose. From time to time, individual or corporate achievements or market pressures may merit additional discretionary grants being given throughout the year. It is not our practice to time these grants prior to the release of material
information but rather to provide these grants during the normal course of business. These would be granted at the Nominating and Compensation Committees discretion.

The allocation among these compensation elements depends on performance objectives and market pressures. Generally more emphasis is placed on incentive compensation than base salary. Grants of incentive
and long-term incentive compensation were generally at least 50% of the named executive compensation package.

Base Pay

Base salary is generally measured by other peer group companies, as adjusted to take into account differences in market capitalization and
for individual performance. Base pay is designed to be competitive with salary levels for comparable executive positions at other peer group companies engaged in the development of new technologies. The Nominating and Compensation Committee reviews
such comparable salary information as one factor to be considered in determining the base pay for our executive officers. The Nominating and Compensation Committee also considers other factors, including that officers responsibilities,
experience, leadership, potential future contribution and demonstrated individual performance measured against strategic business objectives. As the Company is in the early commercialization stage of business, the Nominating and Compensation
Committee considers the liquidity of the Company when factoring base pay into management salaries. . Our philosophy and practice is to place a significant emphasis on incentive and long-term incentive compensation. The Nominating and Compensation
Committee also considers internal pay equity among the executive officers and employees generally. The types and relative importance of the strategic business objectives and financial objectives vary among our executives depending on their positions
and the particular operations and functions for which they are responsible. The compensation committee reviews base salaries annually. These salaries are reviewed at the first board meeting of each year and were increased in 2012. Annual base
salaries for Edward G. Roth and Karen L. Power are currently $300,000 and $192,500, respectively.

Incentive Compensation

Incentive compensation takes the form of annual cash or equity bonuses paid at specific targets ranging from 20% to 50% of salary for key
executives based on our compensation plan structure. These payouts are based on the Nominating and Compensation Committees review of individual performance related to cost targets and prosecution of the business of the Company. The annual
bonus is not typically dependent on macroeconomic conditions. Annual bonuses are paid to our executive officers pursuant to our Syntroleum Incentive Compensation Plan, which provides for cash bonuses based on achievement over the course of the year
of performance objectives. The amount each executive officer receives is determined by the Nominating and Compensation Committee and the board of directors and depends on the individuals performance and level of responsibility.
Typically executive officers may receive cash bonuses of 20% to 50% of their annual salary depending on the achievement of individual and company goals during the year. There is no limitation on the annual bonus if individual achievement and company
goals are exceeded during the year. Competitive market factors for employee retention are taken into account as well as corporate performance when making these determinations. Successful achievement of all goals and objectives is not required for
bonuses to be paid out. However, the amount of bonus paid is significantly impacted by lack of goal achievement. A minimum bonus threshold is included in Edward G. Roths employment agreement requiring bonuses of at least 50% of annual salary
each year. Increases to this amount are based on the factors described above.

Incentive compensation may also take the form
of a performance cash bonus paid at specific targets. These payouts are based on the Nominating and Compensation Committees review of execution of the business plan and success in that execution beyond budgeted or expected values. These
bonuses are dependent on project related profitability and collections of profits. All business development, legal and final execution costs of a project are considered when determining profitability of a project. The amount each executive officer
receives is determined by the Nominating and Compensation Committee and the board of directors and depends on the individuals performance and level of responsibility related to the execution of the business plan and individual project.



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At the end of 2012 individual performance ratings were determined for executives and it was
determined that individual performance was in line with expectations, cash bonuses related to 2012 individual performance were paid on December 21, 2012 to Karen L. Power and Edward G. Roth in the amount of $67,375 and $200,000, respectively.
These bonuses were 35% and 67% of 2012 annual salaries, respectively.

The nomination and compensation committee expectations
for 2012 included fiscal responsibility, expansion of engineering services, and execution of improved mechanical reliability at Dynamic Fuels Plant. The Company was under budget on operating expenditures. The engineering team performed engineering
work and provided licensor assistance throughout 2012 on the Dynamic Fuels Plant as well as worked on additional studies for other clients. Key projects for the Company for 2012 included, leased pilot plant operations for a client with successful
data collected and licensor and engineering design services assistance for our Dynamic Fuels Plant. Mrs. Power and Mr. Roth played key roles in leading all of these activities for the Company and managing the staff and Company funds to
achieve each of these goals. Given the committees view of their contributions to key roles in the Company the decision was made to make these payments in cash.

Performance Based Long-Term Equity Incentive Compensation

Long-term
incentive compensation is tied directly to Company project related milestones that if achieved, are expected to increase stockholder return. Long-term incentive compensation consists of stock options and restricted stock, which generally vest based
on specified milestones. The exercise price of stock options is generally equal to the fair market value of the common stock on the date of grant. Stock options and restricted stock are designed to align the interests of our employees with those of
our stockholders. In determining whether to grant stock options or restricted stock, the Nominating and Compensation Committee considers a variety of factors, including that executives current ownership , the likelihood that the grant
of those options or restricted stock would encourage the executive to remain with our company, prior option grants (including the size of previous grants and the number of options and shares of restricted stock held), peer group analysis of similar
positions and the value of the executives service to our company. The compensation committee also considers these factors when determining whether to grant stock options or restricted stock to other employees. No new awards were granted
to executives in 2012.

Performance based long term awards were last granted to executives in 2008 under the Companys
2005 Stock Incentive Plan. The Nominating and Compensation Committee reviewed the amount of awards to each officer and employee and considered contributions to Company milestones and comparable compensation packages for officers within the same
industry. Upon completion of this analysis the Nominating and Compensation Committee granted an additional award of restricted stock to Mr. Roth of 1,000,000 shares. Mrs. Power received options in the amount of 485,000 at an exercise price
of $0.66. All of the performance milestones set forth in these grants have been achieved and the grants are fully vested.

Benefits

Benefits are part of the overall competitive compensation program designed to attract and retain employees including
executive officers. The named executive officers participate in the same benefit programs as our general employee population.

Severance
and Retirement

Our severance agreements provide for the payment of salary for periods after the date of termination of
employment that vary depending primarily upon the position held by the employee and the event giving rise to the termination of employment. The payment of severance is intended to provide financial security to the executive at competitive levels to
attract and retain executive officers.

Stock Ownership Guidelines

Syntroleum does not have specific equity or other security ownership requirements or guidelines for management. Management is encouraged
to take an ownership stake in the company and is specifically compensated with a trend towards equity compensation. Margin accounts of our common stock held by executive officers and trading in derivatives of our common stock by executive officers
are discouraged but not specifically disallowed by corporate policy. Under our Code of Ethics and Conduct all insiders are bound by the rules of insider trading and speculation in Syntroleum stock is discouraged.

Compliance with Internal Revenue Code Section 162(m)

Section 162(m) of the Internal Revenue Code generally disallows a deduction to public companies to the extent of excess annual compensation over one million dollars paid to the chief executive
officer or to any of the four other most highly compensated executive officers, except for qualified performance-based compensation. While the board considers all compensation paid to the Chief Executive Officer and the named executive officers to
be performance-based, it does not meet all the definitions of performance based compensation in Section 162(m). The compensation committee strongly believes that retaining discretion in determining awards within the parameters of
the performance goals is essential for long-term success. In the past, the effect of the amounts paid in excess of the deductibility amount has been immaterial to our tax return. We plan to review executive compensation as appropriate and take
action as may be necessary to preserve the deductibility of compensation payments to the extent reasonably practical and consistent with our compensation objectives.



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EXECUTIVE COMPENSATION

The following Summary Compensation Table provides information regarding the compensation awarded to or earned during the years ended
December 31, 2012, 2011 and 2010 by the persons named in the table, who we refer to in this Annual Report on Form 10-K as our named executive officers. The tables following the Summary Compensation Table provide additional detail
with respect to grants of plan-based awards, the value of outstanding equity awards as of December 31, 2012, the value of options exercised and stock awards that vested during 2012 and estimates of changes of control and post-employment
benefits.

Summary Compensation Table



|                                                                      |  |      |      |  |           |  |         |          |  |  |                |  |  |                 |   |  |                                        |  |   |                                                                     |  |  |                           |  |  |          |   |  |  |  |        |  |  |  |         | 
|--------------------------------------------------------------------- |  | ---- | ---- |  | --------- |  | ------- | -------- |  |  | -------------- |  |  | --------------- | - |  | -------------------------------------- |  | - | ------------------------------------------------------------------- |  |  | ------------------------- |  |  | -------- | - |  |  |  | ------ |  |  |  | ------- | 
|Name and PrincipalPosition                                            |  | Year |      |  | Salary($) |  |         | Bonus($) |  |  | StockAwards($) |  |  | OptionAwards($) |   |  | Non-EquityIncentivePlanCompensation($) |  |   | Change inPension 
Value&NonqualifiedDeferredCompensationEarnings($) |  |  | All 
OtherCompensation($) |  |  | Total($) |  
|(a)                                                                   |  | (b)  |      |  | (c)       |  |         | (d)(2)   |  |  | (e)(1)         |  |  | (f)(1)          |   |  | (g)                                    |  |   | (h)                                                                 |  |  | (i)(3)                    |  |  | (j)      |  
|Edward G. Roth; President and Chief Executive Officer                 |  |      | 2012 |  |           |  | 300,000 |          |  |  | 200,000        |  |  |                 |  |  |                                        |  |  |                                                                     |  |  |                          |  |  |          |  |  |  |  | 11,250 |  |  |  | 511,250 | 
|                                                                      |  |      | 2011 |  |           |  | 260,000 |          |  |  | 130,000        |  |  |                 |  |  |                                        |  |  |                                                                     |  |  |                          |  |  |          |  |  |  |  | 11,000 |  |  |  | 401,000 | 
|                                                                      |  |      | 2010 |  |           |  | 260,000 |          |  |  | 200,000        |  |  |                 |  |  |                                        |  |  |                                                                     |  |  |                          |  |  |          |  |  |  |  | 11,000 |  |  |  | 471,000 | 
|Karen L. Power; Senior Vice President and Principal Financial Officer |  |      | 2012 |  |           |  | 192,500 |          |  |  | 67,375         |  |  |                 |  |  |                                        |  |  |                                                                     |  |  |                          |  |  |          |  |  |  |  | 11,250 |  |  |  | 271,125 | 
|                                                                      |  |      | 2011 |  |           |  | 175,000 |          |  |  | 35,000         |  |  |                 |  |  |                                        |  |  |                                                                     |  |  |                          |  |  |          |  |  |  |  | 11,000 |  |  |  | 221,000 | 
|                                                                      |  |      | 2010 |  |           |  | 175,000 |          |  |  | 35,000         |  |  |                 |  |  |                                        |  |  |                                                                     |  |  |                          |  |  |          |  |  |  |  | 11,000 |  |  |  | 221,000 | 



|(1) | The amounts in columns (e) and (f) reflect the grant date fair value of awards during the covered year. Grant date fair value is determined in accordance with
the applicable Accounting Standard Codification 718, Stock Compensation. These amounts do not reflect whether the named executive officers have actually realized a financial benefit from the awards. For information on the assumptions used to
calculate the value of the awards, refer to Note 8 to our consolidated financial statements in this Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The amounts in column (d) reflect the cash awards to the named executive officers, which is discussed in further detail under Compensation Discussion and
Analysis-Incentive Compensation. Amounts for bonuses were approved and paid on December 21, 2012.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Amounts shown in column (i) represent a Company match of 401(k) contributions paid in the form of Company stock.
|--- | ----------------------------------------------------------------------------------------------------------------

We have entered into employment agreements with our two executive officers and eight of our employees. These agreements provide for
annual base salaries that we may increase from time to time. In addition, each employment agreement entitles the employee to participate in employee benefit plans that we may offer to our employees from time to time.

Under each agreement, employment may be terminated as follows: by us upon the employees death, disability or retirement; by
us upon the dissolution and liquidation of our company (unless our business is thereafter continued); by us for just cause; by the mutual agreement of the employee and us; and by either us or the employee upon 15 days written notice.

All agreements prohibit the employee from disclosing to third parties, directly or indirectly, our trade secrets, either
during or after the employees employment with our company, other than as required in the performance of the employees duties. The agreement also provides that the employee will not have or claim any right, title or interest
in any trademark, service mark or trade name that we own or use. The employee agrees to irrevocably assign to us all of the employees right, title and interest in and to any and all inventions and works of authorship made, generated or
conceived by the employee during his or her period of employment with us and which related to our business or which were not developed on the employees own time. Each employee further agrees that during the period of employment with us
and for a period of two years following the termination of employment, the employee will not engage in certain activities related to our business.

Mr. Roths employment agreement, dated as of April 24, 2007, has a 48 month initial term and is automatically renewed for successive 12 month terms. The agreement provides for a $260,000
annual salary and a minimum annual bonus equal to 50% of base salary. Our board may in its discretion increase these amounts.



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Mrs. Powers employment agreement, dated as of June 13, 2007, has an initial
term of 12 months and is automatically renewed for successive 12 month terms. The agreement provides for a $175,000 annual salary subject to increase in our discretion.

2012 Grants of Plan-Based Awards

No new grants were awarded during 2012.

OUTSTANDING EQUITY AWARDS AT FISCAL
YEAR-END

The following table provides information on the current holdings of stock options
and stock awards by the named executive officers which includes unexercised and unvested stock options and unvested restricted stock as of December 31, 2012.



|                                                                      |  |                                                              |         |  |                                                                 |  |   |                                                                                       |  |  |                        |  |  |                      |      |  |                                                      |  |          |                                                            |  |  |                                                                                           |  |  |                                                                                                          |   |  |  |  |   |  |  |  |   | 
|--------------------------------------------------------------------- |  | ------------------------------------------------------------ | ------- |  | --------------------------------------------------------------- |  | - | ------------------------------------------------------------------------------------- |  |  | ---------------------- |  |  | -------------------- | ---- |  | ---------------------------------------------------- |  | -------- | ---------------------------------------------------------- |  |  | ----------------------------------------------------------------------------------------- |  |  | -------------------------------------------------------------------------------------------------------- | - |  |  |  | - |  |  |  | - | 
|                                                                      |  | Option Awards                                                |         |  | Stock Awards                                                    | 
|Name                                                                  |  | NumberofSecuritiesUnderlyingUnexercisedOptions(#)Exercisable |         |  | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Unexercisable |  |   | EquityIncentivePlan Awards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions(#) |  |  | OptionExercisePrice($) |  |  | OptionExpirationDate |      |  | Numberof Sharesor Unitsof StockThatHave NotVested(#) |  |          | MarketValue ofShares orUnits ofStock ThatHave NotVested($) |  |  | EquityIncentivePlanAwards:NumberofUnearnedShares,Units orOtherRightsThat HaveNotVested(#) |  |  | EquityIncentivePlanAwards:Market orPayoutValue ofUnearnedShares,Units orOtherRightsThat HaveNotVested($) |  
|(a)                                                                   |  | (b)                                                          |         |  | (c)                                                             |  |   | (d)                                                                                   |  |  | (e)                    |  |  | (f)                  |      |  | (g)                                                  |  |          | (h)                                                        |  |  | (i)                                                                                       |  |  | (j)                                                                                                      |  
|Edward G. Roth; President and Chief Executive Officer                 |  |                                                              |         |  |                                                                 |  |   |                                                                                       |  |  |                        |  |  |                      |      |  |                                                      |  |          |                                                            |  |  |                                                                                          |  |  |                                                                                                          |  |  |  |  |  |  |  |  |  | 
|                                                                      |  |                                                              | 150,000 |  |                                                                 |  |  |                                                                                       |  |  |                       |  |  |                      | 2.89 |  |                                                      |  | 12/8/16  |                                                            |  |  |                                                                                          |  |  |                                                                                                          |  |  |  |  |  |  |  |  |  | 
|Karen L. Power; Senior Vice President and Principal Financial Officer |  |                                                              | 365,000 |  |                                                                 |  |  |                                                                                       |  |  |                       |  |  |                      | 0.66 |  |                                                      |  | 11/21/18 |                                                            |  |  |                                                                                          |  |  |                                                                                                          |  |  |  |  |  |  |  |  |  | 



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2012 OPTION EXERCISES AND
STOCK VESTED

The following table provides information on the exercise of stock options and
the vesting of restricted stock for the named executive officers during 2012.



|                                                                      |  |                                       |   |  |                               |  |   |                                      |  |  |                              |  |  |   |         | 
|--------------------------------------------------------------------- |  | ------------------------------------- | - |  | ----------------------------- |  | - | ------------------------------------ |  |  | ---------------------------- |  |  | - | ------- | 
|                                                                      |  | Option Awards                         |   |  | Stock Awards                  | 
|Name                                                                  |  | Number ofSharesAcquiredon Exercise(#) |   |  | Value Realizedon 
Exercise($) |  |   | Number ofSharesAcquiredon Vesting(#) |  |  | Value Realizedon 
Vesting($) | 
|(a)                                                                   |  | (b)                                   |   |  | (c)                           |  |   | (d)                                  |  |  | (e)(1)                       | 
|Edward G. Roth;
President and Chief Executive Officer                 |  |                                       |  |  |                               |  |  |                                      |  |  | 900,000                      |  |  | $ | 612,000 | 
|Karen L. Power;
Senior Vice President and Principal Financial Officer |  |                                       |  |  |                               |  |  |                                      |  |  |                             |  |  |   |        | 



|(1) | The value realized in column (e) is equal to the number of vesting shares multiplied by the closing stock price of $0.68 on the vest date.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

Post Employment Benefits/Change of Control Arrangement

Each of our employment agreements with our executive officers and key employees may be terminated as follows: (i) by us upon the
employees death, disability or retirement; (ii) by us upon the dissolution and liquidation of our company (unless our business is thereafter continued); (iii) by us for just cause; (iv) by the mutual agreement of the
employee and us; and (v) by either us or the employee upon 15 days written notice.

If we terminate
Mr. Roths employment for any reason other than as noted in (i) or (iii) above, Mr. Roth is entitled to receive an amount equal to 300% of his annual salary payable over 24 months. Potential payments upon termination for
Mr. Roth in 2012 result in a severance pay of $900,000 for termination without good cause, before or after a change in control, death and disability. The employment agreement of Mrs. Power provides for severance equal to three months of
her full base salary as in effect on the date of her termination of employment. Potential payments upon termination for Mrs. Power in 2012 result in severance pay of $48,125 and equity exercise of zero, based on the closing stock price on
December 31, 2012 of $0.40 for termination without good cause before or after a change in control. Equity vesting and exercise is eligible for death and disability.

In the event of a change in control of our company and a termination in the executives employment within one year period immediately following the change of control, the employee is entitled to
receive substantially the same amounts as the severance amounts provided above payable over the same periods as described above and will receive a vested right to all shares and options outstanding.

Compensation Committee Report

The Nominating and Compensation Committee has reviewed and discussed the compensation discussion and analysis with management and has recommended to the board that the Compensation Discussion and Analysis
be included in this Annual Report on Form 10-K for the year ended December 31, 2012.

Nominating and Compensation
Committee

Alvin R. Albe, Jr.

Frank M. Bumstead

P. Anthony Jacobs

Robert B. Rosene, Jr. (Chairman)

James R. Seward



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##### Table of Contents

Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters

Unless otherwise stated, the following table sets forth the number of shares of our common
stock beneficially owned as of March 01, 2013, by (1) each director and nominee for director, (2) each of the executive officers named in the Summary Compensation Table in this proxy statement, (3) all directors and executive
officers as a group; and (4) all persons known by us to be the beneficial owners of at least five percent (5%) of our outstanding common stock. As of March 01, 2013, there were 99,238,146 shares of our common stock issued and
outstanding.



|                                                                         |  |        |           |  |                    |  |     |  
|------------------------------------------------------------------------ |  | ------ | --------- |  | ------------------ |  | --- | -
|Name (1)(2)                                                              |  | Shares |           |  | Percentageof Class | 
|Current Executive Officers                                               |  |        |           |  |                    |  |     |  
|Edward G. Roth                                                           |  |        | 2,176,111 |  |                    |  | 2.2 | %
|Karen L. Power                                                           |  |        | 550,037   |  |                    |  | *   |  
|Directors                                                                |  |        |           |  |                    |  |     |  
|Alvin R. Albe, Jr.                                                       |  |        | 651,462   |  |                    |  | *   |  
|Frank M. Bumstead(3)                                                     |  |        | 691,912   |  |                    |  | *   |  
|P. Anthony Jacobs(4)                                                     |  |        | 987,386   |  |                    |  | 1.0 | %
|Robert B. Rosene, Jr.(5)                                                 |  |        | 1,125,153 |  |                    |  | 1.1 | %
|James R. Seward                                                          |  |        | 727,654   |  |                    |  | *   |  
|All directors and executive officers as a group (7 persons)              |  |        | 6,909,715 |  |                    |  | 6.9 | %
|Tyson Foods, Inc.
2200 Don Tyson Parkway
Springdale, Arkansas 72762-6999 |  |        | 8,000,000 |  |                    |  | 8.1 | %



|* | Represents ownership of less than 1%.
|- | -------------------------------------

|(1) | Except as otherwise noted and subject to applicable community property laws, each stockholder has sole voting and investment power with respect to the shares
beneficially owned. The business address of each director and executive officer is c/o Syntroleum Corporation, 5416 S Yale Ave., Suite 400, Tulsa, OK, 74135.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Shares of common stock subject to options and warrants that are exercisable within 60 days of the date of this proxy statement are deemed outstanding for purposes of
determining beneficial ownership and computing the percentage ownership of such person, but are not deemed outstanding for purposes of computing the percentage ownership of any other person. Accordingly, the following shares of common stock subject
to stock options or warrants are included in the table: Edward G. Roth  150,000; Karen L. Power  365,000; Alvin R. Albe, Jr.  6,408; Frank M. Bumstead  6,408; P. Anthony Jacobs  6,408; Robert B. Rosene, Jr. 
6,408; James R. Seward  2,242; and all directors and executive officers as a group  542,874.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Under
the Company 401K Plan, the Company matches employee contributions with shares of common stock. Shares of common stock held by individuals in their 401K Plan are: Edward G. Roth  58,468 and Karen L. Power  25,137.

|(3) | Includes 13,847 shares of common stock held by Mr. Bumsteads wife, as to which he disclaims beneficial ownership.
|--- | ------------------------------------------------------------------------------------------------------------------

|(4) | Includes 140,000 shares of common stock held by Mr. Jacobs wife, as to which he disclaims beneficial ownership, and 715,978 shares held by the P. Anthony
Jacobs Trust.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Includes 10,200 shares of common stock owned by trusts the beneficiaries of which are Mr. Rosenes children, as to which Mr. Rosene disclaims beneficial
ownership.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

Equity Compensation Plans

The following table provides information concerning securities authorized for issuance under our equity compensation plans as of December 31, 2012.



35



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Equity Compensation Plan Information



|                                                                  |  |                                                                                              |            |  |                                                                              |   |      |                                                                                                                                             |  |  |            | 
|----------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------- | ---------- |  | ---------------------------------------------------------------------------- | - | ---- | ------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ---------- | 
|Plan Category                                                     |  | Number of Securities 
tobe Issued Upon Exerciseof Outstanding Options,Warrants and Rights(a) |            |  | Weighted-average ExercisePrice of OutstandingOptions, Warrants 
andRights(b) |   |      | Number of 
SecuritiesRemaining Available forFuture Issuance UnderEquity Compensation Plans(excluding 
securitiesreflected in column (a))(c) | 
|Equity Compensation Plans Approved by Security Holders (1)(2)     |  |                                                                                              | 6,479,539  |  |                                                                              | $ | 1.93 |                                                                                                                                             |  |  | 5,806,834  | 
|Equity Compensation Plans Not Approved by Security Holders (3)(4) |  |                                                                                              | 4,250,000  |  |                                                                              | $ | 2.87 |                                                                                                                                             |  |  | 7,750,000  | 
|Total                                                             |  |                                                                                              | 10,729,539 |  |                                                                              | $ | 2.30 |                                                                                                                                             |  |  | 13,556,834 | 



|(1) | Includes the 1993 Stock Option and Incentive Plan, the 1997 Stock Incentive Plan, the 2005 Stock Incentive Plan, as amended, including the Stock Option Plan for Outside
Directors.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Includes up to 75,000 shares to be issued upon exercise of warrants issued to Sovereign Oil & Gas Company II, LLC, a consulting firm that we previously have
retained to assist us in acquiring stranded natural gas fields worldwide, which were approved by our stockholders. The warrants are issuable in varying amounts upon the acquisition of properties of the achievement of third-party participation in a
project, and have an exercise price of between $6.40 and $7.98 per share for warrants issued since October 2004.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Includes up to 4,250,000 shares to be issued upon exercise of warrants issued to Tyson. The vesting of the warrants occurred on June 27, 2012 but remain
unexercised as of December 31, 2012. The warrants have an exercise price of $2.87 per share. An additional 4,000,000 shares remain available to issue to Tyson upon Tyson remaining an equity partner and commercial operations of plants in the
future.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | We have registered via S-8 1,500,000 shares of common stock issuable as matching pursuant to the terms of the Syntroleum 401 (k) Plan. As of December 31,
2012, we have issued 775,953 shares under this Plan.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Item 13. Certain Relationships and
Related Transactions, and Director Independence

Affirmative Determinations Regarding Director Independence and Other Matters

Our board of directors has determined that each of the following directors is an independent director as such
term is defined in Rule 5605(a) (2) of the Nasdaq Stock Market (Nasdaq) Listing Rules: Alvin R. Albe, Jr., Frank M. Bumstead, P. Anthony Jacobs, Robert B. Rosene, Jr. and James R. Seward.

These five directors are each referred to individually as an independent director and collectively as the independent
directors.

The board of directors has also determined that each member of the two committees of the board meets the
independence requirements applicable to those committees prescribed by Nasdaq, the Securities and Exchange Commission (SEC) and the Internal Revenue Service.

The Nominating and Compensation Committee reviewed the applicable legal standards for board member and board committee independence. On the basis of this review, the Nominating and Compensation Committee
disclosed no change to the full board of directors and the board made its independent director determinations based upon the Nominating and Compensation Committees disclosure and each directors review of the information made
available to the Nominating and Compensation Committee.

Certain Relationships and Related Person Transactions and Code of Ethics

We have a written Code of Ethics and Conduct pursuant to which we evaluate all transactions required to be reported under
Item 404 of Regulation S-K promulgated under the Securities Act and the Exchange Act. The Code of Ethics is accessible on our website, www.syntroleum.com. This policy provides for the transaction to be brought to the attention of the
CEO, PFO or Audit Committee for approval. If approval is obtained, our practice is to take the matter to our board of directors and, in certain circumstances involving equity transactions, to our stockholders.



36



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##### Table of Contents

Tyson Foods, a greater than 8% shareholder, is our partner in the Dynamic Fuels venture
which is discussed at length in our SEC filings. We provide technical engineering, licensing and other services to Dynamic Fuels and Tyson provides feedstock procurement, supplies portions of the required feedstock and fulfills the accounting
controllership role.

Item 14. Principal Accountant Fees and Services

Independent Registered Public Accounting Firms Fees

HoganTaylor LLP billed us fees in fiscal year 2012 and 2011 as set forth in the table below for (i) the audit of our annual financial statements, the audit of effectiveness of internal controls over
financial reporting, the reviews of our quarterly financial statements and services related to certain SEC registration statements, (ii) assurance and related services that are reasonably related to the performance of the audit or review of
financial statements not included in (i), (iii) professional services relating to tax compliance and preparation, tax advice and tax planning, and (iv) all other services rendered.



|                     |  |      |         |  |      |   |         | 
|-------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                     |  | 2012 |         |  | 2011 |  
|Audit Fees           |  | $    | 140,000 |  |      | $ | 140,000 | 
|Audit-Related Fees*  |  |      | 24,000  |  |      |   | 22,500  | 
|All Other Services** |  |      | 6,025   |  |      |   | 27,500  | 
|Tax Fees             |  |      | 15,000  |  |      |   | 15,000  | 
|                     |  |      |         |  |      |   |         | 
|Total                |  | $    | 185,025 |  |      | $ | 205,000 | 



|* | Represents fees for professional services rendered for review of filings in 2012 and 2011.
|- | ------------------------------------------------------------------------------------------

|** | Represents fees related to Company shelf registration statement on Form S-3.
|-- | ----------------------------------------------------------------------------

The Audit Committee has considered whether the provision of services rendered in 2012, other than the audit of our financial statements, the 2012 audit of effectiveness of internal controls over financial
reporting, and the reviews of our quarterly financial statements, was compatible with maintaining the independence of HoganTaylor LLP and determined that the provision of such services was compatible with maintaining such independence.

The Audit Committee is responsible for appointing, setting compensation for and overseeing the work of the independent auditor. The Audit
Committees amended and restated charter allows the Audit Committee to delegate to subcommittees consisting of one or more members the authority to grant pre-approvals of audit and permitted non-audit services between Audit Committee meetings,
provided that the subcommittee reports any pre-approval decisions to the full Audit Committee at the committees next scheduled meeting. The Audit Committee has adopted policies and procedures for pre-approving all audit and non-audit services
performed by the independent registered public accounting firm. The policy requires advance approval by the Audit Committee of all audit and non-audit work. Unless the specific service has been previously pre-approved with respect to the 12-month
period following the advance approval, the Audit Committee must approve a service before the independent registered public accounting firm is engaged to perform the service. The Audit Committee has given advance approval for specified audit,
audit-related and tax services for 2013. Requests for services that have received this pre-approval are subject to specified fee or budget restrictions as well as internal management controls. All of the 2012 audit and non-audit services described
above were pre-approved by the Audit Committee in accordance with its charter, its policies and procedures, and pursuant to applicable rules of the SEC.



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PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)(1) Financial Statements

Consolidated Financial Statements for the Three Years Ended December 31, 2012:



|                                                                                                                            |  |  |     | 
|--------------------------------------------------------------------------------------------------------------------------- |  |  | --- | 
|Report of Independent Registered Public Accounting Firm                                                                     |  |  | F-1 | 
|Consolidated Balance Sheets as of December 31, 2012 and 2011                                                                |  |  | F-2 | 
|Consolidated Statements of Operations for each of the Three Years in the Period Ended December 
31, 2012                    |  |  | F-3 | 
|Consolidated Statements of Stockholders Equity (Deficit) for each of the Three Year in the Period Ended
 December 31, 2012 |  |  | F-4 | 
|Consolidated Statements of Cash Flows for each of the Three Years in the Period Ended December 
31, 2012                    |  |  | F-5 | 
|Notes to Consolidated Financial Statements                                                                                  |  |  | F-6 | 

(a)(2) Financial Statement Schedules

All schedules and other statements for which provision is made in the applicable regulations of the SEC have been omitted because they are
not required under the relevant instructions or are inapplicable.

(a)(3) Index of Exhibits



|            |  |                                                                                                                                                                                                                                                                                                                                                                    
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit
No. |  | Description of Exhibit                                                                                                                                                                                                                                                                                                                                             
|            | 
|*2.1        |  | Purchase and Sale agreement between the Company and Sasol (USA) corporation dated March 1, 2013 (incorporated by reference to Exhibit 2.1 to the Companys Current Report on
form 8-K filed with the Securities and Exchange Commission on March 7, 2013 (File No. 001-34490)).                                                                                    
|            | 
|*3.1        |  | Certificate of Incorporation of the Company (incorporated by reference to Appendix B to the Companys Proxy Statement filed with the Securities and Exchange Commission on May
12, 1999 (File No. 0-21911)).                                                                                                                                                       
|            | 
|*3.2        |  | Amended and Restated Certificate of Designations of Series A Junior Participating Preferred Stock of the Company dated October 24, 2004 (incorporated by reference to Exhibit 4.5 to
Amendment No. 2 to the Companys Current Report on Form 8-K dated June 17, 1999 and filed with the Securities and Exchange Commission on October 28, 2004 (File No. 0-21911)).
|            | 
|*3.3        |  | Bylaws of the Company (incorporated by reference to Exhibit 3.3 to the Companys Annual Report on form 10-K for the year ended December 31, 2005 filed with the Securities and
Exchange Commission on March 7, 2006 (File No. 0-21911)).                                                                                                                           
|            | 
|*3.3.1      |  | Amendment to the Bylaws of the Company (incorporated by reference to Exhibit 3.3.1 to the Companys Annual Report on Form 10-K for the year ended December 31, 2005 filed with
the Securities and Exchange Commission on March 7, 2006 (File No. 0-21911)).                                                                                                        
|            | 
|*3.3.2      |  | Amendment to the Bylaws of the Company adopted on April 22, 2008 (incorporated by reference to Exhibit 3.3.2 to the Companys Annual Report on Form 10-K for the year ended
December 31, 2009 filed with the Securities and Exchange Commission on February 26, 2010 (File No. 001-34490)).                                                                        
|            | 
|*4.1        |  | Second Amended and Restated Rights Agreement dated as of October 28, 2004 (incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K filed with
the Securities and Exchange Commission on October 29, 2004 (File No. 0-21911)).                                                                                                         
|            | 
|*4.1.1      |  | Amendment dated as of November 15, 2007, to Second Amended and Restated Rights Agreement (incorporated by reference to Exhibit 4.1.1 to the Companys Annual Report on Form 10-K
for the year ended December 31, 2009 filed with the Securities and Exchange Commission on February 26, 2010 (File No. 001-34490)).                                                
|            | 
|*4.4        |  | Warrant Agreement, dated as of June 22, 2007, between the Company and Tyson Foods, Inc. a Delaware Corporation (incorporated by reference to Exhibit 4.4 to the Companys
Quarterly Report on Form 10-Q for the period ended June 30, 2007 filed with the Securities and Exchange Commission on May 10, 2007 (File No. 0-21911)).                                  



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|         |  |                                                                                                                                                                                                                                                                                                                                                        
|-------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | 
|*4.5     |  | Registration Rights Agreement dated as of June 22, 2007, between the Company and Tyson Foods, Inc. a Delaware Corporation (incorporated by reference to Exhibit 4.5 to the
Companys Quarterly Report on Form 10-Q for the period ended June 30, 2007 filed with the Securities and Exchange Commission on May 10, 2007 (File No. 0-21911)).           
|         | 
|*4.6     |  | Warrant Agreement with Tyson Foods, Inc dated as of June 30, 2008 (incorporated by reference to Exhibit 10.1 to the Companys Quarterly Report on Form 10-Q for the period ended
June 30, 2008 filed with the Securities and Exchange Commission on August 4, 2008 (File No. 0-21911).                                                                 
|         | 
|*4.7     |  | Warrants to Purchase 8,000,000 Shares of Common Stock Dated as of October 21, 2008 (incorporated by reference to Exhibit 4.1 to the Companys Quarterly Report on Form 10-Q for
the period ended September 30, 2008 filed with the Securities and Exchange Commission on October 31, 2008 (File No. 0-21911).                                          
|         | 
|*4.8     |  | Common Stock Purchase Warrant Dated October 14, 2009 between the Company and Fletcher International, Ltd. (incorporated by reference to Exhibit 10.89 to the Companys Current
Report on Form 8-K filed with the Securities and Exchange Commission on October 14, 2009 (File No. 001-34490)).                                                         
|         | 
|*4.9     |  | Common Stock Purchase Warrant Dated December 30, 2009 between the Company and Fletcher International, Ltd. (incorporated by reference to Exhibit 10.90 to the Companys Current
Report on Form 8-K filed with the Securities and Exchange Commission on December 30, 2009 (File No. 001-34490)).                                                       
|         | 
|*4.10    |  | Common Stock Purchase Warrant Dated April 20, 2010 between the Company and Fletcher International, Ltd. (incorporated by reference to Exhibit 10.90 to the Companys Current
Report on Form 8-K filed with the Securities and Exchange Commission on April 20, 2010 (File No. 001-34490)).                                                             
|         | 
|*4.11    |  | Warrant to Purchase Common Stock Dated July 6, 2011. (incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K filed with the Securities and
Exchange Commission on June 30, 2011 (File No. 001-34490)).                                                                                                                   
|         | 
|*4.12    |  | Warrant Agreement dated as of November 28, 2005 between the Company and Sovereign Oil and Gas Company II, LLC (incorporated by reference to Exhibit 10.3 to the Companys
Registration Statement on Form S-3 (Registration No. 333-138487) filed with the Securities and Exchange Commission on November 7, 2006).                                     
|         | 
|*4.13    |  | Warrant Agreement dated as of July 26, 2006 between the Company and Sovereign Oil and Gas Company II. LLC (incorporated by reference to Exhibit 10.4 to the Companys
Registration Statement on Form S-3 (Registration No. 333-138487) filed with the Securities and Exchange Commission on November 7, 2006).                                         
|         | 
|+*10.1   |  | SLH Corporation 1997 Stock Incentive Plan (incorporated by reference to Exhibit 10(c) to Amendment No. 1 to the Companys Annual Report on Form 10-K/A for the
year ended December 31, 1997 filed with the Securities and Exchange Commission on April 13, 1998 (File No. 0-21911)).                                                                   
|         | 
|+*10.1.1 |  | Form of Option Agreement with certain executive officers under the SLH Corporation 1997 Stock Incentive Plan (incorporated by reference to Exhibit 10(e) to Amendment No. 1
to the Companys Annual Report on Form 10-K/A for the year ended December 31, 1997 filed with the Securities and Exchange Commission on April 13, 1998 (File No. 0-21911)).
|         | 
|+*10.1.2 |  | Form of Option Agreement with directors under the SLH Corporation 1997 Stock Incentive Plan (incorporated by reference to Exhibit 10(f) to Amendment No. 1 to the
Companys Annual Report on Form 10-K/A for the year ended December 31, 1997 filed with the Securities and Exchange Commission on April 13, 1998 (File No. 0-21911)).                 
|         | 
|+*10.2   |  | Stock Option Agreement dated October 1, 2002 between the Company and John B. Holmes, Jr. (incorporated by reference to Exhibit 10.44 to the Companys Annual Report on Form 10-K
for the year ended December 31, 2002 filed with the Securities and Exchange Commission on March 31, 2003 (File No. 0-21911)).                                         
|         | 
|+*10.3   |  | Form of Option Agreement under the Stock Option Plan for Outside Directors of the Company (incorporated by reference to Exhibit 10.2 to the Companys Annual Report on Form 10-K
for the year ended December 31, 2004 filed with the Securities and Exchange Commission on March 16, 2005 (File No. 0-21911)).                                         
|         | 
|*10.4    |  | Master Preferred License Agreement dated March 7, 1997 between the Company and Marathon Oil Company (incorporated by reference to Exhibit 10.23 to the Companys Registration
Statement on Form S-4/A (Registration No. 333-50253) filed with the Securities and Exchange Commission on June 8, 1998).                                                 
|         | 
|*10.5    |  | Master Preferred License Agreement dated April 10, 1997 between the Company and Atlantic Richfield Company (incorporated by reference to Exhibit 10.24 to the Companys
Registration Statement on Form S-4/A (Registration No. 333-50253) filed with the Securities and Exchange Commission on June 8, 1998).                                          



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|         |  |                                                                                                                                                                                                                                                                                                                                                                                    
|-------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | 
|*10.6    |  | Volume License Agreement dated August 1, 1997 between the Company and YPF International, Ltd. (incorporated by reference to Exhibit 10.25 to the Companys Registration
Statement on Form S-4/A (Registration No. 333-50253) filed with the Securities and Exchange Commission on June 8, 1998).                                                                                   
|         | 
|*10.7    |  | Consolidation and License Agreement dated as of January 16, 2007 between the Company and Marathon Oil Company (incorporated by reference to Exhibit 10.8 to the Companys Annual
Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission on March 16, 2007 (File No. 0-21911)).                                                 
|         | 
|+*10.10  |  | Form of Consent to Adjustment to Option Agreements called for by Section 2.1(c) of the Agreement and Plan of Merger dated as of March 30, 1998 by and between SLH and the Company
(incorporated by reference to Exhibit 10.8 to the Companys Registration Statement on Form S-4 (Registration No. 333-50253) filed with the Securities and Exchange Commission on April 16, 1998).
|         | 
|*10.11   |  | License Agreement dated April 26, 2000 between the Company and Ivanhoe Energy Inc. (incorporated by reference to Exhibit 10.1 of the Companys Quarterly Report on Form 10-Q for
the quarter ended March 31, 2000 filed with the Securities and Exchange Commission on May 12, 2000 (File No. 0-21911)).                                                                           
|         | 
|*10.11.1 |  | Amendment No. 1 to Volume License Agreement dated October 11, 2000 between the Company and Ivanhoe Energy Inc. (incorporated by reference to Exhibit 10.1 of the Companys
Quarterly Report on Form 10-Q for the quarter ended September 30, 2000 filed with the Securities and Exchange Commission on November 14, 2000 (File No. 0-21911)).                                      
|         | 
|*10.11.2 |  | Amendment No 3 to Volume License Agreement dated July 1, 2003 between the Company and Ivanhoe Energy, Inc. (incorporated by reference to Exhibit 10.8 to the Companys Annual
Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission on March 16, 2007 (File No. 0-21911)).                                                    
|         | 
|*10.12   |  | License Agreement dated August 2, 2000 between the Company and Syntroleum Australia Licensing Corporation (incorporated by reference to Exhibit 10.1 of the Companys Quarterly
Report on Form 10-Q for the quarter ended June 30, 2000 filed with the Securities and Exchange Commission on August 14, 2000 (File No. 0-21911)).                                                  
|         | 
|*10.13   |  | License Agreement dated August 3, 2000 between Syntroleum Australia Licensing Corporation and the Commonwealth of Australia (incorporated by reference to Exhibit 10.2 of the
Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2000 filed with the Securities and Exchange Commission on August 14, 2000 (File No. 0-21911)).                                
|         | 
|+*10.14  |  | Employment Agreement dated September 17, 2002 between the Company and Jeffrey M. Bigger (incorporated by reference to Exhibit 10.7 to the Companys Quarterly Report on Form
10-Q for the period ended September 30, 2002 filed with the Securities and Exchange Commission on November 14, 2002 (File No. 0-21911)).                                                              
|         | 
|+*10.15  |  | Indemnification Agreement dated September 16, 2002 between the Company and Jeffrey M. Bigger (incorporated by reference to Exhibit 10.8 to the Companys Quarterly Report on
Form 10-Q for the period ended September 30, 2002 filed with the Securities and Exchange Commission on November 14, 2002 (File No. 0-21911)).                                                         
|         | 
|+*10.16  |  | Employment Agreement dated February 17, 2003 between the Company and Ronald E. Stinebaugh (incorporated by reference to Exhibit 10.43 to the Companys Annual Report on Form
10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission on March 31, 2003 (File No. 0-21911)).                                                                    
|         | 
|+*10.17  |  | Indemnification Agreement dated as of March 13, 2003 between the Company and Ronald E. Stinebaugh (incorporated by reference to Exhibit 10.42 to the Companys Annual Report on
Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission on March 31, 2003 (File No. 0-21911)).                                                            
|         | 
|+*10.18  |  | Director Stock Option Agreement dated December 20, 2002 between the Company and James R. Seward (incorporated by reference to Annex D to the Companys proxy statement filed
with the Securities and Exchange Commission on March 29, 2004 (File No. 0-21911)).                                                                                                                    
|         | 
|+*10.19  |  | Employment Agreement dated as of July 6, 2004 between the Company and Edward G. Roth (incorporated by reference to Exhibit 10.4 to the Companys Quarterly Report on Form 10-Q
for the period ended June 30, 2004 filed with the Securities and Exchange Commission on August 13, 2004 (File No. 0-21911)).                                                                        



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|         |  |                                                                                                                                                                                                                                                                                                                                                                 
|-------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | 
|+*10.20  |  | Indemnification Agreement dated as of July 6, 2004 between the Company and Edward G. Roth (incorporated by reference to Exhibit 10.5 to the Companys Quarterly Report on
Form 10-Q for the period ended June 30, 2004 filed with the Securities and Exchange Commission on August 13, 2004 (File No. 0-21911)).                                                
|         | 
|*10. 21  |  | Common Stock P Common Stock Purchase Agreement dated November 20, 2006 by and between Syntroleum Corporation and Azimuth Opportunity Ltd. (incorporated by reference to Exhibit 10.1
to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on November 21, 2006 (File No. 0-21911)).                                    
|         | 
|+*10.22  |  | Syntroleum Corporation 2005 Stock Incentive Plan, effective as of April 25, 2005 (incorporated by reference to
Exhibit 10.1 to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission
on April 28, 2005 (File No. 0-21911)).                                                                                                
|         | 
|*10.22.1 |  | Amendment to Syntroleum Corporation 2005 Incentive Plan (incorporated by reference to Exhibit 10.1 to the Companys 8-K filed with the Securities and Exchange Commission on
June 18, 2008 (File No. 0-21911).                                                                                                                                                  
|         | 
|*10.22.2 |  | Amendment to Syntroleum Corporation 2005 Incentive Plan (incorporated by reference to Exhibit B to the Companys definitive proxy statement filed with the Securities and
Exchange Commission on April 13, 2009). (File No. 0-21911).                                                                                                                           
|         | 
|+*10.23  |  | Form of Performance Vested Non-Qualified Option Award Agreement (incorporated by reference to Exhibit
10.1 to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on July
5, 2005 (File No. 0-21911)).                                                                                                                   
|         | 
|+*10.24  |  | Form of Stock Option Agreement (incorporated by reference to Exhibit 10.3 to the Companys Registration
Statement on Form S-8 filed with the Securities and Exchange Commission on July 8, 2005 (Registration No.
333-126427)).                                                                                                                                 
|         | 
|+*10.25  |  | Form of Employee Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.4 to the
Companys Registration Statement on Form S-8 filed with the Securities and Exchange Commission on July 6,
2005 (Registration No. 333-126427)).                                                                                                              
|         | 
|+*10.26  |  | Form of Service Vested Incentive Stock Option Award Agreement (incorporated by reference to Exhibit 10.1 to
the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on January 27,
2006 (File No. 0-21911).                                                                                                                  
|         | 
|*10.27   |  | Dynamic Fuels Limited Liability Company Agreement dated June 22, 2007 (incorporated by
reference to Exhibit 10.60 to the Companys Quarterly Report on Form 10-Q for the period ended June 30, 2007 filed with the Securities and Exchange
Commission on August 9, 2007 (File No. 0-21911).                                                                     
|         | 
|*10.28   |  | Syntroleum Corporation Bio-Synfining Master License Agreement with Dynamic Fuels dated June 22, 2007. (incorporated by reference to Exhibit 10.61 to the Companys Quarterly
Report on Form 10-Q for the period ended June 30, 2007 filed with the Securities and Exchange Commission on August 9, 2007 (File No. 0-21911).                                     
|         | 
|*10.29   |  | Syntroleum Corporation Participation Agreement with Tyson Foods, Inc. dated June 22, 2007 (incorporated by reference to Exhibit 10.62 to the Companys Quarterly Report on Form
10-Q for the period ended June 30, 2007 filed with the Securities and Exchange Commission on August 9, 2007 (File No. 0-21911).                                                 
|         | 
|*10.30   |  | Resignation and Compromise Agreement dated as of August 6, 2007 between the Company and Mr. Ziad Ghandour and TI Capital Management (incorporated by reference to Exhibit 10.63 to
the Companys Quarterly Report on Form 10-Q for the period ended September 30, 2007 filed with the Securities and Exchange Commission on November 8, 2007 (File No. 0-21911).
|         | 
|*10.31   |  | Restricted Stock Agreement dated April 24, 2007 between the Company and Mr. Edward G. Roth (incorporated by reference to Exhibit 10.64 to the Companys Quarterly Report on Form
10-Q for the period ended September 30, 2007 filed with the Securities and Exchange Commission on November 8, 2007 (File No. 0-21911).                                         
|         | 
|*10.32   |  | Employment Agreement dated June 13, 2007 between the Company and Ms. Karen L. Power (incorporated by reference to Exhibit 10.66 to the Companys Quarterly Report on Form 10-Q
for the period ended September 30, 2007 filed with the Securities and Exchange Commission on November 8, 2007 (File No. 0-21911).                                                
|         | 
|*10.33   |  | Restricted Stock Agreement dated July 12, 2007 between the Company and Ms. Karen L. Power (incorporated by reference to Exhibit 10.67 to the Companys Quarterly Report on Form
10-Q for the period ended September 30, 2007 filed with the Securities and Exchange Commission on November 8, 2007 (File No. 0-21911).                                          



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|        |  |                                                                                                                                                                                                                                                                                                                                           
|------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        | 
|*10.34  |  | Syntroleum Corporation Stock Purchase and Sale of Common Stock with Fletcher International Ltd. Dated November 18, 2007 (incorporated by reference to Exhibit 10.68 to the
Companys Form 8-K filed with the Securities and Exchange Commission on November 21, 2007 (File No. 0-21911)).                                                 
|        | 
|*10.35  |  | Employment Agreement dated April 24, 2007 between the Company and Mr. Edward G. Roth (incorporated by reference to Exhibit 10.4 to the Companys Quarterly Report on Form 10-Q
for the period ended March 31, 2007 filed with the Securities and Exchange Commission on May 10, 2007 (File No. 0-21911).                                  
|        | 
|*10.36  |  | Restricted Stock Agreement dated November 16, 2007 between the Company and Ken Agee. (incorporated by reference to Exhibit 10.80 to the Companys Annual Report on Form 10-K for
the year ended December 31, 2008 filed with the Securities and Exchange Commission on March 17, 2008 (File No. 0-21911).                                 
|        | 
|*10.37  |  | Stock Option Agreement Dated November 21, 2008 between the Company and Karen Power (incorporated by reference to Exhibit 10.82 to the Companys Annual Report on Form 10-K for
the year ended December 31, 2008, filed with the Securities and Exchange Commission on March 2, 2009. (File No. 0-21911).                                  
|        | 
|*10.38  |  | Restricted Stock Agreement Dated November 21, 2008 between the Company and Edward G. Roth (incorporated by reference to Exhibit 10.83 to the Companys Annual Report on Form
10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on March 2, 2009. (File No. 0-21911).                           
|        | 
|*10.39  |  | Settlement Agreement and Release of Claims Dated October 14, 2009 between the Company and Fletcher International, Ltd. (incorporated by reference to Exhibit 10.87 to the
Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on October 14, 2009 (File No. 001-34490)).                               
|        | 
|*10.40  |  | Securities Purchase Agreement Dated October 14, 2009 between the Company and Fletcher International, Ltd. (incorporated by reference to Exhibit 10.88 to the Companys Current
Report on Form 8-K filed with the Securities and Exchange Commission on October 14, 2009 (File No. 001-34490)).                                            
|        | 
|*10.41  |  | Technology Transfer Agreement dated December 15, 2008 but effective as of February 20, 2009, between the Company and Sinopec Corp. (incorporated by reference to Exhibit 10.85 to the
Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on February 25, 2009) (File No. 0-21911).***                 
|        | 
|*10.42  |  | CDF Equipment and Material Transfer Agreement dated December 15, 2008 but effective as of February 20, 2009, between the Company and Sinopec Corp. (incorporated by reference to
Exhibit 10.86 to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on February 25, 2009). (File No. 0-21911).***
|        | 
|*10.43  |  | Common Stock Purchase Agreement dated July 14, 2010, between the Company and Energy Opportunity, Ltd. (incorporated by reference to Exhibit 10.87 to the Companys Current
Report on Form 8-K filed with the Securities and Exchange Commission on July 14, 2010). (File No. 0-34490).                                                    
|        | 
|*10.44  |  | Underwriting Agreement dated June 30, 2011, between the Company and JMP Securities, LLC. (incorporated by reference to Exhibit 1.1 to the Companys Current Report on Form 8-K
filed with the Securities and Exchange Commission on June 30, 2011). (File No. 001-34490)).                                                                
|        | 
|*10.45  |  | Settlement Agreement and Mutual Release dated as of June 27, 2012, among Syntroleum Corporation, Tyson Foods, Inc. and Dynamic Fuels, LLC. (incorporated by reference to Exhibit 10.1
to the Companys Quarterly Report on Form 10Q filed with the Securities and Exchange Commission on August 8, 2012). (File No. 001-34490).           
|        | 
|**10.46 |  | Personnel Services Agreement for the Tulsa Pilot Plant Facility, dated as of March 1, 2013, between Syntroleum Corporation and Sasol
(USA) Corporation.                                                                                                                                                                                   
|        | 
|*99.1   |  | Dynamic Fuels, LLC Audited Financial Statements, year ended September 30, 2008 (incorporated by reference to Exhibit 99.1 to the Companys Annual Report on Form 10-K for the
year ended December 31, 2008 filed with the Securities and Exchange Commission on March 2, 2009 (File No. 0-21911)).                                        
|        | 
|*99.2   |  | Dynamic Fuels, LLC Audited Financial Statements, year ended September 30, 2009 (incorporated by reference to Exhibit 99.2 to the Companys Annual Report on Form 10-K for the
year ended December 31, 2009 filed with the Securities and Exchange Commission on February 26, 2010 (File No. 001-34490)).                                  
|        | 
|*99.3   |  | Dynamic Fuels, LLC Audited Financial Statements, year ended September 30, 2010. (incorporated by reference to exhibit 99.3 to the Companys Annual Report on Form 10-K/A for the
year ended December 31, 2010 filed with the Securities and Exchange Commission on July 18, 2011 (File No. 001-34490)).                                   
|        | 
|*99.4   |  | Dynamic Fuels, LLC Audited Financial Statements, year ended September 30, 2011. (incorporated by reference to exhibit 99.4 to the Companys Annual Report on Form 10-K for the
year ended December 31, 2011 filed with the Securities and Exchange Commission on March 6, 2012 (File No. 001-34490)).                                     



42



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##### Table of Contents

|       |  |                                                                               
|------ |  | ------------------------------------------------------------------------------
|       | 
|# 99.5 |  | Dynamic Fuels, LLC Audited Financial Statement, year ended September 30, 2012.
|       | 
|# 21   |  | Subsidiaries of Syntroleum                                                    
|       | 
|**23   |  | Consent of HoganTaylor LLP                                                    
|       | 
|**31.1 |  | Section 302 Certification of Chief Executive Officer                          
|       | 
|**31.2 |  | Section 302 Certification of Chief Financial Officer                          
|       | 
|**32.1 |  | Section 906 Certification of Chief Executive Officer                          
|       | 
|**32.2 |  | Section 906 Certification of Chief Financial Officer                          



|* | Incorporated by reference as indicated.
|- | ---------------------------------------

|# | Filed with the Original Form 10-K.
|- | ----------------------------------

|** | Filed herewith.
|-- | ---------------

|+ | Compensatory plan or arrangement.
|- | ---------------------------------

|*** | CERTAIN PORTION OF THIS EXHIBIT AND THE ANNEXES THERE TO WHICH ARE INDICATED BY XXX HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT WHICH
HAS BEEN GRANTED BY THE SECURITIES AND EXCHANGE COMMISSION. SUCH OMITTED PORTIONS HAVE BEEN FILED SEPARATELY WITH THE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITEIS AND EXCHANGE ACT OF 1934.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



43



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##### Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



|                        |  |  |  |                         |  |                   
|----------------------- |  |  |  | ----------------------- |  | ------------------
|                        |  |  |  | SYNTROLEUM CORPORATION 
|                        |  |  | 
|Dated: February 7, 2014 |  |  |  | By:                     |  | /s/ Edward G. Roth
|                        |  |  |  | Edward G. Roth         
|                        |  |  |  | Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on the dates indicated.



|                                               |  |                                                                                     |  |                 
|---------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | ----------------
|Name                                           |  | Capacity                                                                            |  | Date            
|/s/ Edward G. Roth Edward G. Roth              |  | Chief Executive Officer and Director (Principal Executive Officer)                  |  | February 7, 2014
|                                               |  |                                                                                    
|/s/Karen L. Power Karen L. Power               |  | Senior Vice President and Principal Financial Officer (Principal Financial Officer) |  | February 7, 2014
|                                               |  |                                                                                    
|/s/Robert B. Rosene, Jr. Robert B. Rosene, Jr. |  | Chairman of the Board                                                               |  | February 7, 2014
|                                               |  |                                                                                    
|/s/Alvin R. Albe, Jr. Alvin R. Albe, Jr.       |  | Director                                                                            |  | February 7, 2014
|                                               |  |                                                                                    
|/s/Frank M. Bumstead Frank M. Bumstead         |  | Director                                                                            |  | February 7, 2014
|                                               |  |                                                                                    
|/s/P. Anthony Jacobs P. Anthony Jacobs         |  | Director                                                                            |  | February 7, 2014
|                                               |  |                                                                                    
|/s/James R. Seward James R. Seward             |  | Director                                                                            |  | February 7, 2014



44



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##### Table of Contents

Index to Exhibits



| |          |  |  |                                                                               
| | -------- |  |  | ------------------------------------------------------------------------------
| |         
| | 99.5     |  |  | Dynamic Fuels, LLC Audited Financial Statements, year ended September 30, 2012
| |         
| | 21       |  |  | Subsidiaries of Syntroleum                                                    
| |         
| | 23       |  |  | Consent of HoganTaylor LLP                                                    
| |         
| | 31.1     |  |  | Section 302 Certification of Chief Executive Officer                          
| |         
| | 31.2     |  |  | Section 302 Certification of Chief Financial Officer                          
| |         
| | 32.1     |  |  | Section 906 Certification of Chief Executive Officer                          
| |         
| | 32.2     |  |  | Section 906 Certification of Chief Financial Officer                          
| |         
| | 101.INS  |  |  | XBRL Instance Document                                                        
| |         
| | 101.SCH  |  |  | XBRL Taxonomy Extension Schema Document                                       
| |         
| | 101. CAL |  |  | XBRL Taxonomy Extension Calculation Linkbase Document                         
| |         
| | 101. DEF |  |  | XBRL Taxonomy Extension definition Linkbase Document                          
| |         
| | 101. LAB |  |  | XBRL Taxonomy Extension Label Linkbase Document                               
| |         
| | 101.PRE  |  |  | XBRL Taxonomy Extension Presentation Linkbase Document                        



45