Document:

Lien Subordination and Intercreditor Agreement dated as of March 31, 2010

 Exhibit 10.2 
  
  
  
 LIEN SUBORDINATION AND INTERCREDITOR
AGREEMENT 
 dated as of 
 March 31, 2010, 
 among 
 WHITEBOX ADVISORS LLC, 
 as Credit Facilities Collateral Agent, 
 U.S. BANK NATIONAL ASSOCIATION 
 as Note Collateral Agent 
 and 
 FLOTEK INDUSTRIES, INC. 
 and the other Grantors named herein 
  
  
  

 LIEN SUBORDINATION AND INTERCREDITOR AGREEMENT dated as of March 31, 2010, between
WHITEBOX ADVISORS LLC, as collateral agent for the Credit Facility Secured Parties referred to herein; U.S. BANK NATIONAL ASSOCIATION, as collateral agent for the Note Secured Parties referred to herein; FLOTEK INDUSTRIES, INC.; and the other
Grantors named herein. 
 Reference is made to (a) the Credit Agreement (such term, and each other capitalized term used
and not otherwise defined herein, having the meaning assigned to it in Article I), under which the Lenders referred to therein have extended and agreed to extend credit to the Company, and (b) the Note Indenture, under which the Company
proposes to issue the Notes. The issuance of the Notes and the creation of the Liens provided for in the Note Security Documents require the execution and delivery of this Agreement. In consideration of the amendment of the Credit Agreements to
permit the issuance of the Notes, the purchase of the Notes by the purchasers thereof, the mutual agreements herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the Credit Facilities Collateral
Agent (for itself and on behalf of the Credit Facilities Secured Parties), the Note Collateral Agent (for itself and on behalf of the Note Secured Parties), the Company and the subsidiaries of the Company named herein agree as follows: 

ARTICLE I 
 Definitions 
 SECTION 1.01. Construction; Certain Defined Terms. (a) The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise,
(i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified,
(ii) any reference herein to any person shall be construed to include such person’s successors and assigns, but shall not be deemed to include the subsidiaries of such person unless express reference is made to such subsidiaries,
(iii) the words “herein”, “hereof and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein
to Articles and Sections shall be construed to refer to Articles and Sections of this Agreement and (v) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 
  

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 (b) As used in this Agreement, the following terms have the meanings specified below:

 “Accession Agreement” means an accession agreement in substantially the form of Annex I hereto under which a
collateral agent or similar Representative of Designated Senior Obligations shall become a party hereto and the Designated Senior Obligations Collateral Agent for such Designated Senior Obligations hereunder. 
 “Bankruptcy Code” means Title 11 of the U.S. Code. 
 “Collateral” means the Credit Facilities Collateral, the Designated Senior Obligations Collateral and the Note Collateral.

 “Collateral Agent” means any of the Credit Facilities Collateral Agent, any Designated Senior Obligations
Collateral Agent and the Note Collateral Agent. 
 “Company” means Flotek Industries, Inc., a Delaware
corporation. 
 “Credit Agreement” means the Amended and Restated Credit Agreement dated as of March 31,
2010, as amended, extended, renewed, restated, supplemented or otherwise modified from time to time, among the Company, the Lenders party thereto, and Whitebox Advisors LLC, as Administrative Agent. 
 “Credit Facilities Collateral” means all “Collateral”, as defined in the Pledge and Security Agreement, securing
any Credit Facilities Obligations, and any other assets or properties of the Company or any subsidiaries of the Company now or at any time hereafter subject to Liens securing any Credit Facilities Obligations. 
 “Credit Facilities Collateral Agent” means Whitebox Advisors LLC, in its capacity as Administrative Agent under the Credit
Agreement and the Credit Facilities Security Documents, and its successors and assigns in such capacity. 
 “Credit
Facilities Obligations” means all “Obligations” as such term is defined in the Credit Agreement. 
  

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 “Credit Facilities Secured Parties” means, at any time, each person that is
a “Secured Party” under and as defined in the Credit Agreement. 
 “Credit Facilities Security
Documents” means the Pledge and Security Agreement, the other “Security Documents”, as defined in the Credit Agreement, and any other documents now existing or entered into after the date hereof that create Liens on any assets or
properties of the Company or any subsidiaries of the Company to secure any Credit Facilities Obligations.  
 “Designated Senior Obligations” means all obligations of the Company or any subsidiaries of the Company that shall have been designated as such in accordance with Article III. 
 “Designated Senior Obligations Collateral” means any assets or properties of the Company or any subsidiaries of the Company
now or at any time hereafter subject to Liens securing any Designated Senior Obligations. 
 “Designated Senior
Obligations Collateral Agent” means, with respect to any Designated Senior Obligations, any collateral agent or similar Representative appointed to act on behalf of the applicable Designated Senior Obligations Secured Parties with respect
to the Designated Senior Obligations Collateral securing such Designated Senior Obligations; provided, that if no such collateral agent or other Representative shall have been so appointed by the applicable Designated Senior Obligations Secured
Parties, then the Designated Senior Obligations Collateral Agent with respect to such Designated Senior Obligations will be deemed to be such Designated Senior Obligations Secured Parties. 
 “Designated Senior Obligations Governing Documents” means, as to any Designated Senior Obligations, the credit agreement,
note agreement, indenture or other instrument or document under which such Designated Senior Obligations shall have been issued or incurred. 
 “Designated Senior Obligations Secured Parties” means, at any time, each holder of, or obligee in respect of, any Designated Senior Obligations outstanding at such time. 
 “Designated Senior Obligations Security Documents” means any documents entered into after the date hereof that create Liens
on any assets or properties of the Company or any subsidiaries of the Company to secure any Designated Senior Obligations. 
  

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 “Discharge of Senior Obligations” means payment in full in cash of the
principal of and interest and premium, if any, on all Debt (as defined in the Credit Agreement) (or any corresponding definition in any Designated Senior Obligations Governing Documents) constituting Senior Obligations secured by any Collateral, or,
with respect to all obligations under each Hedging Arrangement (as defined in the Credit Agreement) (or any corresponding definition in any Designated Senior Obligations Governing Documents) constituting Senior Obligations secured by any Collateral,
delivery of cash collateral or backstop letters of credit in respect thereof in compliance with the terms of such Senior Obligation, in each case after or concurrently with termination of all commitments to extend credit thereunder, and payment in
full of any other obligations in respect of any Senior Obligation secured by any Collateral that are due and payable or otherwise accrued and owing at or prior to the time such principal, interest and premium, if any, are paid. 
 “Grantor” means the Company and each subsidiary of the Company that shall have created any Senior Lien or Junior Lien on
its assets or properties to secure any Senior Obligations or Note Obligations. 
 “Junior Collateral Agent”
means the Note Collateral Agent. 
 “Junior Liens” means Liens created under Junior Obligations Security
Documents securing Junior Obligations. 
 “Junior Lien Pledge and Security Agreement” means the Junior Lien
Pledge and Security Agreement dated as of March 31, 2010, among the Company, certain subsidiaries of the Company and the Note Collateral Agent, as amended, extended, renewed, restated, supplemented or otherwise modified from time to time.

 “Junior Obligations” means the Note Obligations. 
 “Junior Obligations Collateral” means the Note Collateral. 
 “Junior Obligations Secured Parties” means the Note Secured Parties. 
 “Junior Obligations Security Documents” means the Note Security Documents. 
 “Lien” means any pledge, security interest, mortgage or other lien or encumbrance created to secure any indebtedness or
other obligation. 
  

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 “Note Collateral” means the “Collateral”, as defined in the Note
Indenture, and any other assets or properties of the Company or any subsidiaries of the Company now or at any time hereafter subject to Liens securing any Note Obligations. 
 “Note Collateral Agent” means U.S. Bank National Association, in its capacity as Collateral Agent under the Note Indenture
and the Note Security Documents, and its successors and assigns in such capacity. 
 “Note Indenture” means the
Indenture dated as of March 31, 2010, among the Company, as Issuer, the Guarantors (as defined therein) party thereto and U.S. Bank National Association, as Trustee, as amended and supplemented by the First Supplemental Indenture dated as of
March 31, 2010 among the Company, as Issuer, the Guarantors (as defined therein) party thereto and U.S. Bank National Association, as Trustee (the “First Supplemental Note Indenture”) and as further amended, extended, renewed,
restated, supplemented or otherwise modified from time to time. 
 “Note Obligations” means (a) the due
and punctual payment of (i) the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding)
on the Notes, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) all other monetary obligations of the Company or any subsidiaries of the Company to any of the Note Secured
Parties under the Note Indenture or any Note Security Document, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and (iii) all amounts due under any guarantee of any of the foregoing, including any guarantee contained in the
Note Indenture, and (b) the due and punctual performance of all other obligations of the Company or any subsidiaries of the Company to any of the Note Secured Parties under the Note Indenture or any Note Security Document. 
 “Note Secured Parties” means, at any time, the Trustee, the Note Collateral Agent and each other holder of, or obligee in
respect of, any Note Obligations outstanding at such time. 
 “Note Security Documents” means the Junior Lien
Pledge and Security Agreement, the other “Security Documents”, as defined in the First Supplemental Note Indenture, and any other documents now existing or entered into after the date hereof that create Liens on any assets or properties of
the Company or any subsidiaries of the Company to secure any Note Obligations. 
  

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 “Notes” means up to $36,004,000 aggregate principal amount of the
Company’s 5.25% Convertible Senior Secured Notes due 2028, issued on or about the date of this Agreement pursuant to the Note Indenture, and any other notes issued from time to time under the Note Indenture. 
 “Pledge and Security Agreement” means the Amended and Restated Pledge and Security Agreement dated as of March 31,
2010, among the Company, certain subsidiaries of the Company and the Credit Facilities Collateral Agent, as amended, extended, renewed, restated, supplemented or otherwise modified from time to time. 
 “Representative” means (a) in the case of any Credit Facility Obligations, the Administrative Agent under the Credit
Agreement or the Credit Facilities Collateral Agent, (b) in the case of the Note Obligations, the Trustee or the Note Collateral Agent, and (c) in the case of any Designated Senior Obligations, any administrative agent, trustee or similar
representative designated pursuant to Article III or the applicable Designated Senior Obligations Collateral Agent. 
 “Secured Parties” means the Credit Facilities Secured Parties, the Designated Senior Obligations Secured Parties and the Note Secured Parties. 
 “Senior Collateral Agent” means the Credit Facilities Collateral Agent and each Designated Senior Obligations Collateral Agent. 
 “Senior Obligations” means the Credit Facilities Obligations and the Designated Senior Obligations. 
 “Senior Obligations Collateral” means the Credit Facilities Collateral and the Designated Senior Obligations Collateral.

 “Senior Obligations Secured Parties” means the Credit Facilities Secured Parties and the Designated Senior
Obligations Secured Parties. 
 “Senior Obligations Security Documents” means the Credit Facilities Security
Documents and the Designated Senior Obligations Security Documents. 
 “Senior Liens” means Liens created under
Senior Obligations Security Documents securing Senior Obligations. 
  

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 “subsidiary” means, with respect to any Person (the “parent”) at
any date, any corporation, limited liability company, partnership, association or other entity the accounts of which are consolidated with those of the parent in the parent’s consolidated financial statements in accordance with GAAP as of such
date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held by, or (b) that is, as of such date, otherwise subject to the control by (through possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ability to exercise voting power, by contract or otherwise), the parent or one or more subsidiaries of the parent or by the
parent and one or more subsidiaries of the parent. 
 ARTICLE II 
 Subordination of Junior Liens 
 SECTION 2.01.
Subordination of Junior Liens. (a) All Junior Liens in respect of any Collateral are expressly subordinated and made junior in right, priority, operation and effect to any and all Senior Liens in respect of such Collateral,
notwithstanding anything contained in this Agreement, the Note Indenture, any Junior Obligations Security Document or any other agreement or instrument to the contrary, and irrespective of the time, order or method of creation, attachment or
perfection of such Junior Liens and Senior Liens or any defect or deficiency or alleged defect or deficiency in any of the foregoing. 
 (b) It is acknowledged that (i) the aggregate amount of the Senior Obligations may be increased as provided in Article III or through increases in the amounts of the facilities established by the Credit Agreement or the Designated
Senior Obligations Governing Documents (subject to the limitations set forth in the Note Indenture), (ii) a portion of the Senior Obligations consists or may consist of Indebtedness that is revolving in nature, and the amount thereof that may
be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed and (iii) the Senior Obligations may be extended, renewed or otherwise amended or modified, or secured with additional Collateral, from time
to time, all without affecting the subordination of the Junior Liens hereunder or the provisions of this Agreement defining the relative rights of the Senior Obligations Secured Parties and the Junior Obligations Secured Parties. The lien priorities
provided for herein shall not be altered or otherwise affected by any amendment, modification, supplement, extension, increase, replacement, renewal, restatement or refinancing of either the Junior

  

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Obligations or the Senior Obligations, by the securing of any Senior Obligations with any additional Collateral or guarantees, by the release of any Collateral or Guarantees securing any Senior
Obligations, by the failure of any person to comply with any provision of this Agreement or any agreement evidencing, governing or securing any Senior Obligation or Junior Obligation or by any action that any Collateral Agent or Secured Party may
take or fail to take in respect of any Collateral. 
 (c) It is further acknowledged that the holders of Senior Obligations of
one or more classes may from time to time hereafter enter into agreements establishing the relative priorities of such classes of Senior Obligations or of the Senior Liens securing the same. It is agreed that the relative priorities of classes of
Senior Obligations shall be governed by the foregoing agreements or, to the extent not determined by such agreements, by applicable law, and that nothing in this Agreement shall affect such relative priorities of classes of Senior Obligations or the
related Senior Liens. It is further agreed that no agreements establishing the relative priorities of Senior Obligations of one or more classes or of the Senior Liens securing such Senior Obligations shall in any way limit or affect the
subordination of the Junior Liens provided for in this Agreement or the provisions of this Agreement defining the relative rights of the Senior Obligations Secured Parties and the Junior Obligations Secured Parties. 
 (d) It is further acknowledged that (subject to the limitations set forth in the Note Indenture) the Senior Obligations are or may in the
future be secured by Liens on collateral other than the Collateral subject to the Junior Liens. It is agreed that no Senior Collateral Agent will have any obligation to proceed against any such other collateral securing the Senior Obligations or to
exercise any other remedies available to them as a condition to obtaining the benefits of this Article II. 
 (e) The Note
Collateral Agent confirms that the Note Indenture and the Note Security Documents contain provisions substantially to the effect set forth in Annex II hereto under which the Note Secured Parties agree to, and subject their rights to the provisions
of, this Agreement. 
 SECTION 2.02. No Action With Respect to Junior Obligations Collateral Subject to Senior Liens. No
Junior Collateral Agent or other Junior Obligations Secured Party shall commence or instruct the Junior Collateral Agent to commence any judicial or nonjudicial foreclosure proceedings with respect to, seek to have a trustee, receiver, liquidator or
similar official appointed for or over, attempt any action to take possession of, exercise any right, remedy or power with respect to, or otherwise take any action to enforce its interest in or realize upon, or take any other action available to it
in respect of, any Junior

  

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Obligations Collateral under any Junior Obligations Security Document, applicable law or otherwise, at any time when such Junior Obligations Collateral shall be subject to any Senior Lien and
prior to the Discharge of Senior Obligations, it being agreed that only the applicable Senior Collateral Agent, acting in accordance with the applicable Senior Obligations Security Documents, shall be entitled to take any such actions or exercise
any such remedies. Notwithstanding the foregoing or anything to the contrary provided in Section 2.06, the Junior Collateral Agent may, subject to Section 2.05, (i) take all such actions as it shall deem necessary to continue the
perfection of the Junior Liens on any Junior Obligations Collateral, (ii) file a claim or statement of interest with respect to the Junior Obligations in any bankruptcy, insolvency or similar proceeding or (iii) take any other action not
adverse to the Senior Liens in order to preserve or protect its rights in the Junior Liens on the Collateral for the benefit of the Junior Obligations Secured Parties. 
 SECTION 2.03. No Duties of Senior Collateral Agents. Each Junior Obligations Secured Party acknowledges and agrees that no Senior Collateral Agent or other Senior Obligations Secured Party shall
have any duties or other obligations to such Junior Obligations Secured Party with respect to any Senior Obligations Collateral, other than to transfer to the Junior Collateral Agent any proceeds of any such Collateral that constitutes Junior
Obligations Collateral remaining in its possession following any sale, transfer or other disposition of such Collateral and the Discharge of Senior Obligations, or, if any Senior Collateral Agent shall be in possession of all or any part of such
Collateral after the Discharge of Senior Obligations, such Collateral or any part thereof remaining, in each case without representation or warranty on the part of such Senior Collateral Agent or any Senior Obligations Secured Party (it being
understood that nothing herein shall prohibit any Senior Collateral Agent from transferring Collateral or proceeds of Collateral to the holders of other Senior Obligations secured by such Collateral or to another Senior Collateral Agent acting on
their behalf to the extent it is required to do so under the terms of any agreement). In furtherance of the foregoing, each Junior Obligations Secured Party acknowledges and agrees that until the Discharge of Senior Obligations, the applicable
Senior Collateral Agents shall be entitled, for the benefit of the holders of such Senior Obligations, to sell, transfer or otherwise dispose of or deal with such Collateral as provided herein and in the Credit Facilities Security Documents or the
Designated Senior Obligations Security Documents, as the case may be, without regard to any Junior Lien or any rights to which the holders of the Junior Obligations would otherwise be entitled as a result of such Junior Lien. Without limiting the
foregoing, each Junior Obligations Secured Party agrees that no Senior Collateral Agent or other Senior Obligations Secured Party shall have any duty or obligation first to marshall or realize upon any type of Collateral (or any other collateral
securing the Senior Obligations), or to sell, dispose of or otherwise liquidate all or any portion of the Collateral (or any other collateral securing the Senior Obligations), in any manner that would

  

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maximize the return to the Junior Obligations Secured Parties, notwithstanding that the order and timing of any such realization, sale, disposition or liquidation may affect the amount of
proceeds actually received by the Junior Obligations Secured Parties from such realization, sale, disposition or liquidation. Each of the Junior Obligations Secured Parties waives any claim such Junior Obligations Secured Party may now or hereafter
have against any Senior Collateral Agent or other Senior Obligations Secured Party (or their representatives) arising out of (i) any actions which any Senior Collateral Agent or the Senior Obligations Secured Parties take or omit to take
(including, without limitation, actions with respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any of the
Collateral and actions with respect to the collection of any claim for all or any part of the Senior Obligations from any account debtor, guarantor or any other party) in accordance with the respective Senior Obligations Security Documents or any
other agreement related thereto or to the collection of the Senior Obligations or the valuation, use, protection or release of any security for the Senior Obligations, (ii) any election by any Senior Collateral Agent or Senior Obligations
Secured Parties, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b) of the Bankruptcy Code and/or (iii) any borrowing of any Grantor as debtor-in-possession, or any related grant of a security
interest or administrative expense priority under Section 364 of the Bankruptcy Code. 
 SECTION 2.04. No Interference;
Payment Over; Reinstatement. (a) Each Junior Obligations Secured Party agrees that (i) it will not take or cause to be taken any action the purpose or effect of which is, or could be, to make any Junior Lien pari passu with, or to give
such Junior Obligations Secured Party any preference or priority relative to, any Senior Lien with respect to the Collateral subject to such Junior Lien or any part thereof, (ii) it will not challenge or question in any proceeding the validity
or enforceability of any Senior Obligations or Senior Obligations Security Document, or the validity, attachment, perfection or priority of any Senior Lien, or the validity or enforceability of the priorities, rights or duties established by or
other provisions of this Agreement, (iii) it will not interfere, hinder or delay, in any manner, whether by judicial proceedings or otherwise, any sale, transfer or other disposition of the Collateral subject to such Junior Lien by any holders
of Senior Obligations secured by such Collateral or any Senior Collateral Agent acting on their behalf, (iv) it shall have no right to (A) direct any Senior Collateral Agent or any holder of Senior Obligations to exercise any right, remedy
or power with respect to the Collateral subject to any Junior Lien or (B) consent to the exercise by any Senior Collateral Agent or any holder of Senior Obligations of any right, remedy or power with respect to the Collateral subject to any
Junior Lien, (v) it will not institute any suit or assert in any suit, bankruptcy, insolvency or other proceeding any claim against any Senior Collateral Agent or any holder of Senior Obligations seeking damages from or other relief by way of
specific performance,

  

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instructions or otherwise with respect to, and neither any Senior Collateral Agent nor any holder of Senior Obligations shall be liable for, any action taken or omitted to be taken by such Senior
Collateral Agent or any such holder of Senior Obligations with respect to any Collateral securing such Senior Obligations that is subject to any Junior Lien, (vi) it will not seek, and hereby waives any right, to have any Senior Obligations
Collateral subject to any Junior Lien or any part thereof marshaled upon any foreclosure or other disposition of such Collateral and (vii) it will not attempt, directly or indirectly, whether by judicial proceedings or otherwise, to challenge
the enforceability of any provision of this Agreement. 
 (b) The Junior Collateral Agent and each other Junior Obligations
Secured Party hereby agrees that if it shall obtain possession of any Senior Obligations Collateral, or shall realize any proceeds or payment in respect of any such Collateral, whether pursuant to any Junior Obligations Security Document or by the
exercise of any rights available to it under applicable law or in any bankruptcy, insolvency or similar proceeding or otherwise, at any time prior to the Discharge of Senior Obligations, then it shall hold such Collateral, proceeds or payment in
trust for the applicable Senior Obligations Secured Parties and transfer such Collateral, proceeds or payment, as the case may be, to the applicable Senior Collateral Agent. Each Junior Obligations Secured Party agrees that if, at any time, all or
part of any payment with respect to any Senior Obligations previously made shall be rescinded for any reason whatsoever, such Junior Obligations Secured Party shall promptly pay over to the applicable Senior Collateral Agent any payment received by
it in respect of any Collateral subject to any Senior Lien securing such Senior Obligations and shall promptly turn any Collateral subject to any such Senior Lien then held by it over to the applicable Senior Collateral Agent, and the provisions set
forth in this Agreement shall be reinstated as if such payment had not been made, until the Discharge of Senior Obligations. 
 SECTION 2.05. Automatic Release of Junior Liens. The Junior Collateral Agent and each other Junior Obligations Secured Party agrees that, in the event of a sale, transfer or other disposition of Senior Obligations Collateral subject
to any Junior Lien to a person or entity that is not the Company or a subsidiary of the Company, such Junior Lien on such Collateral (but not on the proceeds thereof, except to the extent such proceeds are applied to repay any Senior Obligations)
shall terminate and be released automatically and without further action if the applicable Senior Liens on such Collateral are released. Each Junior Collateral Agent agrees to execute and deliver all such releases and other instruments as shall
reasonably be requested by any applicable Senior Collateral Agent to evidence and confirm any release of Junior Obligations Collateral provided for in this Section. 
 SECTION 2.06. Certain Agreements With Respect to Bankruptcy or Insolvency Proceedings. In the event a proceeding under the Bankruptcy Code or any other Federal,

  

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state or foreign bankruptcy, insolvency, receivership or similar law shall be commenced by or against any Grantor, each Junior Collateral Agent and the other Junior Obligations Secured Parties
shall not, prior to the Discharge of Senior Obligations, (a) seek in respect of any part of the Collateral or proceeds thereof or any Lien which may exist thereon any relief from or modification of the automatic stay as provided in
Section 362 of the Bankruptcy Code or seek or accept any form of adequate protection under either or both Sections 362 and 363 of the Bankruptcy Code with respect thereto except replacement liens junior to the Senior Liens and the accrual (but
not the current payment) of interest and the current payment of out-of-pocket expenses, including fees and disbursements of counsel and other professional advisors, incurred by the Junior Collateral Agents (which the Junior Obligations Secured
Parties agree will constitute adequate protection of their claims and interests), (b) oppose or object to any adequate protection sought by or granted to any Senior Obligations Secured Party in connection with the use of cash collateral or
post-petition financing under Section 362, 363 or 364 of the Bankruptcy Code, (c) oppose or object to the use of cash collateral by a Grantor, (d) oppose or object to any post-petition financing (including any debtor-in-possession
financing) provided by any of the Senior Obligations Secured Parties or provided by a third party pursuant to Section 364 of the Bankruptcy Code (including on a priming basis), (e) oppose or object to or withhold consent from the
disposition of assets by any Grantor under Section 363(b) or (f) of the Bankruptcy Code, (f) oppose, object to, or vote against any plan of reorganization or disclosure statement the terms of which are consistent with the rights of
the Senior Obligations Secured Parties under the Senior Obligations Security Documents and the rights of the Senior Obligations Secured Parties and the Junior Obligations Secured Parties under this Agreement, (g) make an election pursuant to
Section 1111(b) of the Bankruptcy Code or oppose any election pursuant to Section 1111(b) by any Senior Obligations Secured Parties, (h) oppose or object to the determination of the extent of any Liens held by any of the Senior
Obligations Secured Parties or the value of any claims of Senior Obligations Secured Parties under Section 506(a) of the Bankruptcy Code, or (i) oppose or object to the payment of interest and expenses as provided under Sections 506(b) and
(c) of the Bankruptcy Code to any Senior Obligations Secured Parties. In any proceeding described in this Section, until the Discharge of Senior Obligations, each Junior Obligations Secured Party hereby authorizes and empowers (without imposing
an obligation on) the holders of such Senior Obligations or any Senior Collateral Agent or other Representative acting on their behalf to vote such Junior Obligations Secured Party’s share of the Junior Obligations secured by such Junior Lien,
insofar as any such voting right arises from or relates to such Junior Lien or to the Collateral subject thereto, in connection with any resolution, arrangement, plan of reorganization, compromise or settlement relating to such Collateral, so long
as the proposal is consistent with the rights of the Senior Obligations Secured Parties under the Senior Obligations Security Documents and the rights of the Senior Obligations Secured Parties and the Junior Obligations Secured Parties under this
Agreement. Notwithstanding the foregoing, any Junior Collateral Agent may take the actions contemplated by the last sentence of Section 2.02 hereof. 
  

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 SECTION 2.07. Reinstatement. In the event that any of the Senior Obligations shall be
paid in full and such payment or any part thereof shall subsequently, for whatever reason (including, but not limited to, an order or judgment for disgorgement of a preference under Title 11 of the United Stated Code, or any similar law, or the
settlement of any claim in respect thereof), be required to be returned or repaid, the terms and conditions of this Article II shall be fully applicable thereto until all such Senior Obligations shall again have been paid in full in cash.

 ARTICLE III 
 Designated Senior Obligations 
 SECTION 3.01. Designation. The Company may from time to time, subject to any
limitations contained in the Credit Agreement, any then existing Designated Senior Obligations Governing Documents and the Note Indenture, designate additional obligations that are, or are to be, secured by Liens on any assets or properties of the
Company or any subsidiaries of the Company as Designated Senior Obligations by delivering to each Collateral Agent a notice: 
 (i) describing the obligations being designated as Designated Senior Obligations, and including a statement of the maximum aggregate outstanding principal amount of such obligations; 
 (ii) listing the Designated Senior Obligations Governing Documents under which such Designated Senior Obligations are issued or incurred and
the Designated Senior Obligations Security Documents securing such Designated Senior Obligations, and attaching copies of such Designated Senior Obligations Governing Documents and Designated Senior Obligations Security Documents; 
 (iii) identifying the Designated Senior Obligations Collateral Agent with respect to such Designated Senior Obligations, and any other
Representative of the holders of such Designated Senior Obligations; 
 (iv) certifying that the incurrence of such Designated
Senior Obligations, the creation of the Liens securing such Designated Senior Obligations and the designation of such Designated Senior Obligations as Designated Senior Obligations hereunder do not violate or result in a default under any provision
of any Credit Agreement, any then existing Designated Senior Obligations Governing Document or the Note Indenture; 
  

 13 

 (v) certifying that the Designated Senior Obligations Governing Document governing such
Designated Senior Obligations contains provisions under which the related Designated Senior Obligations Secured Parties agree, or are deemed to agree, to be bound by the provisions of this Agreement; and 
 (vi) attaching a fully executed Accession Agreement under which the Designated Senior Obligations Collateral Agent with respect to such
Designated Senior Obligations shall become a party to and a Collateral Agent under this Agreement (unless such Designated Senior Obligations Collateral Agent shall already be a party hereto). 
 Upon the delivery of such notice and the related attachments as provided above, the obligations designated in such notice shall become
Designated Senior Obligations for all purposes of this Agreement. Notwithstanding any other provision contained in this Section or elsewhere in this Agreement, no obligation shall constitute a Designated Senior Obligation if the incurrence of such
obligation, the creation of the Liens securing such obligation or the designation of such obligation as a Designated Senior Obligation hereunder would violate or result in a default under any provision of any Credit Agreement, any existing
Designated Senior Obligations Governing Document or the Note Indenture. 
 Each Senior Collateral Agent agrees that if it shall
at any time hold a Senior Lien on any Junior Obligations Collateral that can be perfected by the possession or control of such Collateral or of any account in which such Collateral is held, and if such Collateral or any such account is in fact in
the possession or under the control of such Senior Collateral Agent, such Senior Collateral Agent will serve as sub-agent for each Junior Collateral Agent for the sole purpose of perfecting the Junior Lien of such Junior Collateral Agent in such
Collateral. It is agreed that the obligations of the applicable Senior Collateral Agent and the rights of the Junior Collateral Agents and the other Junior Secured Parties in connection with any such sub-agency arrangement will be in all respects
subject to the provisions of Article II. The Senior Collateral Agent will be deemed to make no representation as to the adequacy of the steps taken by it to perfect the Junior Lien on any such Collateral and shall have no responsibility to any
Junior Collateral Agent or other Junior Secured Party for such perfection, it being understood that the sole purpose of this Article is to enable the Junior Secured Parties to obtain a perfected Junior Lien in such Collateral to the extent, if any,
that such perfection results from the possession or control of such Collateral or any such account by the Senior Collateral Agent. Upon the Discharge of Senior Obligations with respect to Senior Obligations secured by the Senior Lien of any Senior
Collateral Agent, such Senior

  

 14 

 
Collateral Agent shall take all such actions in its power as shall reasonably be requested by the Junior Collateral Agent to transfer possession or control of such Collateral or any such account
to the Junior Collateral Agent; provided, that if any such Collateral or any such account shall be subject to any other Senior Lien, then such Senior Collateral Agent shall instead transfer such possession or control of such Collateral or such
account to the Senior Collateral Agent holding such Senior Lien. The Junior Collateral Agent agrees that if it shall obtain possession or control of any Collateral or any account pursuant to the foregoing provisions and such Collateral or account
shall thereafter become subject to any Senior Lien, it will take all such actions in its power as shall reasonably be requested by the Senior Collateral Agent holding such Senior Lien to transfer possession or control of such Collateral or such
account to such Senior Collateral Agent. 
 ARTICLE V 
 Existence and Amounts of Liens and Obligations 
 Whenever any
Collateral Agent shall be required, in connection with the exercise of its rights or the performance of its obligations hereunder, to determine the existence or amount of any Senior Obligations or Junior Obligations, or the existence of any Lien
securing any such obligations, or the Collateral subject to any such Lien, it may request that such information be furnished to it in writing by the Representative of such Senior Obligations or Junior Obligations and shall be entitled to make such
determination on the basis of the information so furnished; provided, however, that if, notwithstanding the request of such Collateral Agent, such Representative shall fail or refuse reasonably promptly to provide the requested information, such
Collateral Agent shall be entitled to determine such existence or amount by such method as it may, in the exercise of its good faith judgment, determine, including by reliance upon a certificate of the Company. Each Collateral Agent may rely
conclusively, and shall be fully protected in so relying, on any determination made by it in accordance with the provisions of the preceding sentence (or as otherwise directed by a court of competent jurisdiction) and shall have no liability to the
Company or any of its subsidiaries, any Secured Party or any other person as a result of such determination. 
 ARTICLE VI

 Consent of Grantors 
 Each Grantor hereby consents to the provisions of this Agreement and the intercreditor arrangements provided for herein and agrees (a) that no Collateral Agent or other Secured Party shall have any
liability to any Grantor as a result of the performance of

  

 15 

 
its obligations hereunder and (b) that the obligations of the Grantors under the Senior Obligations Security Documents will in no way be diminished or otherwise affected by the provisions or
arrangements provided for herein. Each Grantor also hereby confirms its respective guarantees, pledges and grants of security interests, as applicable, under each of the Credit Facilities Security Documents to which it is a party, and agrees that,
notwithstanding the effectiveness of the Note Security Documents, such guarantees, pledges and grants of security interests shall continue to be in full force and effect and shall accrue to the benefit of the Credit Facilities Secured Parties.

 ARTICLE VII 
 Representations and Warranties 
 SECTION 7.01. Representations and Warranties of Each Party. Each party hereto
represents and warrants to the other parties hereto as follows: 
 (a) Such party is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to enter into and perform its obligations under this Agreement. 
 (b) This Agreement has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party,
enforceable in accordance with its terms. 
 (c) The execution, delivery and performance by such party of this Agreement
(i) do not require any consent or approval of, registration or filing with or any other action by any governmental authority and (ii) will not violate any applicable law or regulation or the charter, by-laws or other organizational
documents of such party or any order of any governmental authority or any indenture, agreement or other instrument binding upon such party. 
 SECTION 7.02. Representations and Warranties of Each Collateral Agent. Each Collateral Agent represents and warrants to the other parties hereto that it has been authorized by the Secured Parties
for which it serves as collateral agent (or, in the case of the Credit Facilities Collateral Agent, by the Required Lenders under and as defined in each Credit Agreement) to enter into this Agreement. 
  

 16 

 ARTICLE VIII 
 Miscellaneous 
 SECTION 8.01. Notices. All notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 
 (a) if to the Credit Facilities Collateral Agent, to Whitebox Advisors LLC, 3033 Excelsior Blvd., Ste 300, Minneapolis, Minnesota 55416,
Attention of Jake Mercer (Telecopy No. (612) 253-6149); 
 (b) if to the Note Collateral Agent, to U.S. Bank National
Association, 5555 San Felipe Street, Suite 1150, Houston, TX 77056, Attention: Corporate Trust Services (Telecopy No. (713) 235-9213); 
 (c) if to any Designated Senior Obligations Collateral Agent, to it at the address or telecopy number specified in the applicable Accession Agreement; and 
 (d) if to the Company, to it at Flotek Industries, Inc., 2930 W. Sam Houston Parkway North, Suite 300, Houston, Texas 77043, Attention of
Jempy Neyman (Telecopy No. (713) 726-5363). 
 Any party hereto may change its address or telecopy number for notices and
other communications hereunder by notice to the other parties hereto (and for this purpose a notice to the Company shall be deemed to be a notice to each Grantor). All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt. 
 SECTION 8.02. Waivers;
Amendment. (a) No failure or delay on the part of any party hereto in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereto are cumulative and are not exclusive of any rights or
remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and
then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice or demand on any party hereto in any case shall entitle such party to any other or further notice or demand in similar or
other circumstances. 
  

 17 

 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by each Collateral Agent and the Company. 
 SECTION 8.03.
Parties in Interest. This Agreement shall be binding upon and inure to the benefit of the parties hereto (including any Designated Senior Obligations Collateral Agents becoming parties hereto as provided in Section 8.04) and their
respective successors and assigns, as well as the other Credit Facilities Secured Parties, Note Secured Parties and Designated Senior Obligations Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this
Agreement. 
 SECTION 8.04. Accession of Designated Senior Obligations Collateral Agents. Upon the execution and delivery
by the collateral agent or similar Representative of any Designated Senior Obligations of an Accession Agreement as provided in Article III, such collateral agent or Representative shall become a party to this Agreement as the Designated Senior
Obligations Collateral Agent for such Designated Senior Obligations and shall thenceforth have all the rights and obligations applicable to it in such capacity hereunder. 
 SECTION 8.05. Survival of Agreement. All covenants, agreements, representations and warranties made by any party in this Agreement shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of this Agreement. 
 SECTION 8.06. Counterparts. This Agreement may
be executed in counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single contract. Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective
as delivery of a manually signed counterpart of this Agreement. 
 SECTION 8.07. Severability. Any provision of this
Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. The parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  

 18 

 SECTION 8.08. Governing Law; Jurisdiction; Consent to Service of Process.
(a) This Agreement shall be construed in accordance with and governed by the law of the State of New York. 
 (b) Each
party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York state or federal court sitting in New York, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may
be heard and determined in such New York state or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party hereto may otherwise have to bring any action or proceeding relating to this Agreement in the courts of any
jurisdiction. 
 (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 (d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 8.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
 SECTION 8.09. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE

  

 19 

 
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION. 
 SECTION 8.10. Specific Performance. Each party hereto (a) agrees that any other party hereto may
demand specific performance of this Agreement and (b) irrevocably waives any defense based on the adequacy of a remedy at law, and any other defense, that might be asserted in opposition to the awarding of specific performance in any action
that may be brought by any other party hereto. 
 SECTION 8.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement. 
 [Signature Pages Follow] 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

			
	WHITEBOX ADVISORS LLC, as Credit
	Facilities Collateral Agent
		
	By:	 	 /s/ Mark Strefling

	Name:	 	Mark Strefling
	Title:	 	Chief Legal Officer

 [Signature Page
to Lien Subordination and Intercreditor Agreement] 

			
	U.S. BANK NATIONAL ASSOCIATION,
	as Note Collateral Agent
		
	By:	 	 /s/ Steven A. Finklea

	Name:	 	Steven A. Finklea
	Title:	 	Vice President

 [Signature Page to
Lien Subordination and Intercreditor Agreement] 

			
	FLOTEK INDUSTRIES, INC., as Grantor
		
	By:	 	 /s/ John Chisholm

	Name:	 	John Chisholm
	Title:	 	President

 [Signature Page to Lien
Subordination and Intercreditor Agreement] 

			
	TELEDRIFT COMPANY
	FLOTEK PAYMASTER, INC.
	MATERIAL TRANSLOGISTICS, INC.
	PETROVALVE, INC.
	TURBECO, INC.
	USA PETROVALVE, INC.
	FLOTEK INTERNATIONAL, INC.
	PADKO INTERNATIONAL INCORPORATED
	FLOTEK ECUADOR MANAGEMENT, LLC
	 FLOTEK ECUADOR INVESTMENTS, LLC,
     as Grantors

		
	By	 	 /s/ John Chisholm

		 	 John Chisholm

		 	 President

	
	SOONER ENERGY SERVICES, LLC
	CESI MANUFACTURING, LLC
	CESI CHEMICAL, INC.,
    as Grantors
		
	By	 	 /s/ John Chisholm

		 	 John Chisholm

		 	 Chief Executive Officer

	
	FLOTEK INDUSTRIES FZE
    as Grantor
		
	By	 	 /s/ John Chisholm

		 	 John Chisholm

		 	 Chief Executive Officer

 [Signature Page to Lien Subordination and Intercreditor Agreement] 

 ANNEX I 
 ACCESSION AGREEMENT dated as of [    ], between [Representative] (the “Representative”) and FLOTEK INDUSTRIES, INC. (the “Company”). 
 A. Reference is made to the Lien Subordination and Intercreditor Agreement dated as of March 31, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), among Whitebox Advisors LLC, as Credit Facilities Collateral Agent, U.S. Bank National Association, as Note Collateral Agent, Flotek Industries, Inc.,
the other Grantors named therein and the other Designated Senior Obligations Collateral Agents from time to time party thereto. 
 B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Intercreditor Agreement. 
 C. The Representative desires to become a Designated Senior Obligations Collateral Agent under the Intercreditor Agreement. 
 Accordingly, the Company and the Representative agree as follows: 
 SECTION 1.
Accession to Intercreditor Agreement. Upon the execution of this Accession Agreement by the Representative and the Company and as of the date of the delivery of this Accession Agreement to each Collateral Agent under the Intercreditor
Agreement as part of the notice required pursuant to Section 3.01 of the Intercreditor Agreement, the Representative hereby accedes to the Intercreditor Agreement and shall thereafter be a party to and be bound by the provisions of the
Intercreditor Agreement and have all the rights and obligations of a Designated Senior Obligations Collateral Agent with respect to the Designated Senior Obligations described in the notice required pursuant to Section 3.01 of the Intercreditor
Agreement (of which this Accession Agreement forms a part). 
 SECTION 2. Notices. All notices and other communications
provided for in the Intercreditor Agreement shall be given to the Representative as follows: 
 [Address] 
 [Telecopy Number] 
 SECTION 3. Counterparts. This Accession Agreement may be executed in multiple counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single agreement. Delivery of an executed
signature page to this Accession Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Accession Agreement. 
  

 I-1 

 SECTION 4. Governing Law. This Agreement shall be construed in accordance with and
governed by the law of the State of New York. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first above written. 
  

			
	[Name of Representative],
		
	By	 	  

	Name:	 	
	Title:	 	
	
	FLOTEK INDUSTRIES, INC.
		
	By	 	  

	Name:	 	
	Title:	 	

  

 I-2 

 ANNEX II 
 Provision for Junior Obligations Governing Document 
 Reference is made to the
Lien Subordination and Intercreditor Agreement dated as of March 31, 2010, among Whitebox Advisors LLC, as collateral agent for the Credit Facility Secured Parties referred to therein; U.S. Bank National Association, as collateral agent for the
Note Secured Parties referred to therein; Flotek Industries, Inc.; the other Grantors named therein; and the Designated Senior Obligations Collateral Agents becoming parties thereto from time to time (the “Intercreditor Agreement”). Each
[holder of Junior Obligations] (a) [hereby consents] [will be deemed to have consented] to the subordination of the [Liens securing the Junior Obligations] on the terms set forth in the Intercreditor Agreement, (b) [hereby agrees] [will be
deemed to have agreed] that it will be bound by and will take no actions contrary to the provisions of the Intercreditor Agreement and (c) [hereby authorizes and instructs] [will be deemed to have authorized and instructed] the [Junior
Obligations Collateral Agent] to enter into the Intercreditor Agreement and to subject the [Junior Obligations] and the [Liens securing the Junior Obligations] to the provisions thereof. The foregoing provisions are intended as an inducement to the
Senior Obligations Secured Parties (as defined in the Intercreditor Agreement) to extend credit to Flotek Industries, Inc., and such Senior Obligations Secured Parties are intended third party beneficiaries of such provisions and the provisions of
the Intercreditor Agreement. 
 Provision for Junior Obligations Security Document 
 Reference is made to the Lien Subordination and Intercreditor Agreement dated as of March 31, 2010, among Whitebox Advisors LLC, as
collateral agent for the Credit Facility Secured Parties referred to therein; U.S. Bank National Association, as collateral agent for the Note Secured Parties referred to therein; Flotek Industries, Inc.; the other Grantors named therein; and the
Designated Senior Obligations Collateral Agents becoming parties thereto from time to time (the “Intercreditor Agreement”). Notwithstanding any other provision contained herein, this Agreement, the Liens created hereby and the rights,
remedies, duties and obligations provided for herein are subject in all respects to the provisions of the Intercreditor Agreement and, to the extent provided therein, the Senior Obligations Security Documents (as defined in the Intercreditor
Agreement). In the event of any conflict or inconsistency between the provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall control. 
  

 II-1Junior Lien Pledge and Security Agreement dated as of March 31, 2010

 Exhibit 10.3 
 JUNIOR LIEN PLEDGE AND SECURITY AGREEMENT 
 This
JUNIOR LIEN PLEDGE AND SECURITY AGREEMENT (this “Security Agreement”) dated as of March 31, 2010, is made by Flotek Industries, Inc., a Delaware corporation (the “Company”), and each subsidiary of the Company
signatory hereto (together with the Company, the “Grantors” and individually, a “Grantor”), in favor of U.S. Bank National Association, as Collateral Agent (in such capacity, together with its successors and
assigns, the “Collateral Agent”) for the benefit of each of the Secured Parties (as defined below). 
 WITNESSETH: 
 A. Pursuant to the terms and conditions of the Exchange Agreement dated as
of March 31, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Exchange Agreement”) among the Company, the other Grantors and Whitebox Hedged High Yield Partners, LP (“WHHY”), IAM
Mini-Fund 14 Limited (“IAM”), Pandora Select Partners, LP (“Pandora”), Whitebox Special Opportunities Fund, LP – Series B (“WSOB”), Whitebox Combined Partners, LP (“WCP”), Whitebox Convertible Arbitrage
Partners, LP (“WCAP”), Whitebox Intermarket Partners LP (“WIP”), ECF Value Fund, L.P. (“ECF”), ECF Value Fund II, L.P. (“ECF II”) and ECF Value Fund International Ltd. (“ECF International”, together
with WHHY, IAM, Pandora, WSOB, WCP, WCAP, WIP, ECF and ECF II, collectively, the “Exchanging Noteholders”), the Company is issuing to the Exchanging Noteholders up to $36,004,000 in aggregate principal amount of the Company’s 5.25%
Convertible Senior Secured Notes due 2028 (together with any notes issued in substitution or exchange therefor, and as the same may be amended, restated, supplemented or otherwise modified from time to time, collectively, the
“Notes”). 
 B. The Notes will be governed by the terms of that certain Indenture dated as of March 31,
2010 among the Company, as Issuer, each of the subsidiaries of the Company party thereto, as Guarantors (the “Guarantors”), and U.S. Bank National Association, as Trustee (in such capacity, together with its successors and assigns,
the “Trustee”), as amended and supplemented by the First Supplemental Indenture dated March 31, 2010 among the Company, as Issuer, the Guarantors, and the Trustee (as so amended and supplemented, and as further amended,
restated, supplemented or otherwise modified from time to time, the “Indenture”), and will be unconditionally guaranteed by such Guarantors pursuant to the terms of the Indenture. 
 C. Pursuant to the terms of an Amended and Restated Pledge and Security Agreement dated as of March 31, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Senior Security Agreement”) among the Company, each of the other Grantors and the Credit Facilities Collateral Agent (as defined below), the Grantors have granted to the
Credit Facilities Collateral Agent a first-priority lien and security interest in the Collateral (as defined below) to secure the obligations of the Grantors incurred under or in connection with the Amended and Restated Credit Agreement dated as of
March 31, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Company, the lenders party thereto from time to time and Whitebox Advisors LLC, as administrative
agent. 

 D. The Collateral Agent, the Credit Facilities Collateral Agent, the Company and the other
Grantors are parties to a Lien Subordination and Intercreditor Agreement dated as of March 31, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), pursuant which the
lien upon and security interest in the Collateral granted by this Security Agreement are and shall be subordinated in all respects to the lien upon and security interest in the Collateral granted pursuant to the Senior Obligations Security Documents
(as defined below). 
 E. Pursuant to the terms of the Exchange Agreement, the Grantors are executing and delivering this
Security Agreement to induce the Trustee to enter into the Indenture and the Exchanging Noteholders to acquire the Notes. Inasmuch as each Grantor will derive substantial direct and indirect benefits from the transactions contemplated by the
Exchange Agreement, each Grantor is willing to execute and deliver and perform its obligations under this Security Agreement to secure its obligations under the Indenture Documents (as defined below). 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees, for
the benefit of the Secured Parties, as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1. Certain Terms. The
following terms (whether or not underscored) when used in this Security Agreement, including its preamble and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof):

 “Certificated Equipment” means any Equipment the ownership of which is evidenced by a certificate of title
or for which applicable Legal Requirement requires the issuance of a certificate of title. 
 “Collateral” is
defined in Section 2.1. 
 “Collateral Account” is defined in Section 4.3(b).

 “Collateral Agent” is defined in the preamble. 
 “Computer Hardware and Software Collateral” means (a) all computer and other electronic data processing hardware,
integrated computer systems, central processing units, memory units, display terminals, printers, features, computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical supply hardware, generators, power equalizers,
accessories and all peripheral devices and other related computer hardware, including all operating system software, utilities and application programs in whatsoever form, (b) software programs (including both source code, object code and all
related applications and data files), designed for use on the computers and electronic data processing hardware described in clause (a) above, (c) all firmware associated therewith, (d) all documentation (including flow charts,
logic diagrams, manuals, guides, specifications, training materials, charts and pseudo codes) with respect to such hardware, software and firmware described in the preceding clauses (a) through (c), and (e) all rights with
respect to all of the foregoing, including copyrights, licenses, options,

  

 -2- 

 
warranties, service contracts, program services, test rights, maintenance rights, support rights, improvement rights, renewal rights and indemnifications and any substitutions, replacements,
improvements, error corrections, updates, additions or model conversions of any of the foregoing. 
 “Company”
is defined in the preamble. 
 “Control Agreement” means an authenticated record in form and substance
reasonably satisfactory to a Senior Collateral Agent or the Collateral Agent, as the case may be, that provides for, respectively, such Senior Collateral Agent or the Collateral Agent (for the ratable benefit of the Secured Parties) to have
“control” (as defined in the UCC) over certain Collateral. 
 “Copyright Collateral” means all
copyrights of any Grantor, registered or unregistered and whether published or unpublished, now or hereafter in force throughout the world including all of such Grantor’s rights, titles and interests in and to all copyrights registered in the
United States Copyright Office or anywhere else in the world, including without limitation those copyrights referred to in Item C of Schedule III hereto, and registrations and recordings thereof and all applications for registration
thereof, whether pending or in preparation, all copyright licenses, the right to sue for past, present and future infringements of any of the foregoing, all rights corresponding thereto, all extensions and renewals of any thereof and all Proceeds of
the foregoing, including licenses, royalties, income, payments, claims, damages and Proceeds of suit, which are owned or licensed by such Grantor. 
 “Credit Agreement” is defined in the recitals. 
 “Credit Facilities Collateral Agent” means Whitebox Advisors LLC, in its capacity as administrative agent under the Credit Agreement and the Credit Facilities Security Documents, and its successors in such capacity.

 “Credit Facilities Security Documents” has the meaning assigned to such term in the Intercreditor Agreement.

 “Discharge of Senior Obligations” has the meaning assigned to such term in the Intercreditor Agreement.

 “Distributions” means all cash, cash dividends, stock dividends, other distributions, liquidating dividends,
shares of stock resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants, options, non-cash dividends, and all other distributions or payments (whether similar or dissimilar to the foregoing) on or with
respect to, or on account of, any Pledged Share or Pledged Interest or other rights or interests constituting Collateral. 
 “Equipment” is defined in Section 2.1(a). 
 “Equity Interest” means with
respect to any Person, any shares, interests, participation, or other equivalents (however designated) of corporate stock, membership interests or partnership interests (or any other ownership interests) of such Person. 
 “Exchange Agreement” is defined in the recitals. 
  

 -3- 

 “Exchanging Noteholders” is defined in the recitals. 
 “Excluded Stock” means (i) 34% of the Equity Interests in each direct Foreign Subsidiary of the Grantors, and
(ii) any Equity Interests or other securities of any Subsidiary of the Company that constitute Excluded Securities, as defined in the Indenture. 
 “Foreign Subsidiary” means any Subsidiary of the Company that is a “controlled foreign corporation” as defined in Section 957 of the Internal Revenue Code of 1986, as
amended, and the regulations and published interpretations thereof. 
 “General Intangibles” means all
“general intangibles” and all “payment intangibles”, each as defined in the UCC, and shall include all interest rate or currency protection or hedging arrangements, all tax refunds, all licenses, permits, concessions and
authorizations and all Intellectual Property Collateral (in each case, regardless of whether characterized as general intangibles under the UCC). 
 “Governmental Approval” is defined in Section 2.1(f). 
 “Governmental Authority” means, with respect to any Person, any foreign governmental authority, the United States of America, any state of the United States of America, the District of Columbia, and any subdivision of any
of the foregoing, and any agency, department, commission, board, authority or instrumentality, bureau or court having jurisdiction over such Person. 
 “Grantor” is defined in the preamble. 
 “Indemnified Parties” is defined in Section 6.4(a). 
 “Indenture” is defined
in the recitals. 
 “Indenture Documents” means the Exchange Agreement, the Indenture, the Notes, this
Security Agreement and the other Note Security Documents, as such agreements may be amended, restated, supplemented or otherwise modified from time to time. 
 “Intellectual Property Collateral” means, collectively, the Computer Hardware and Software Collateral, the Copyright Collateral, the Patent Collateral, the Trademark Collateral and the
Trade Secrets Collateral. 
 “Intercreditor Agreement” is defined in the recitals. 
 “Inventory” is defined in Section 2.1(b). 
 “Legal Requirement” means any law, statute, ordinance, decree, requirement, order, judgment, rule, regulation (or official
interpretation of any of the foregoing) of, and the terms of any license or permit issued by, any Governmental Authority, including, but not limited to, Regulations T, U and X. 
 “Lien” means any pledge, security interest, mortgage or other lien or encumbrance created to secure any indebtedness or
other obligation. 
  

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 “Material Adverse Change” means a material adverse change (a) in the
business, condition (financial or otherwise) or results of operations of the Company and its Subsidiaries, taken as a whole; (b) in the validity or enforceability of this Security Agreement or any of the other Indenture Document; or (c) on
the Company’s, any Guarantor’s or any other Grantor’s ability to perform its obligations under this Security Agreement, any Note or any other Indenture Document. 
 “Noteholders” means each Person in whose name a Note is registered in the Securities Register. 
 “Note Obligations” means (a) the due and punctual payment of (i) the principal of and interest (including
interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Notes, when and as due, whether at maturity, by acceleration, upon
one or more dates set for prepayment or otherwise, (ii) all other monetary obligations of the Company or any Subsidiaries of the Company to any of the Secured Parties under the Indenture or any other Indenture Document, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) and (iii) all amounts due under any guarantee of any of the foregoing, including any guarantee contained in the Indenture, and (b) the due and punctual performance of all other obligations of the
Company or any Subsidiaries of the Company to any of the Secured Parties under the Indenture or any other Indenture Document. 
 “Note Security Documents” means the this Security Agreement, the other “Security Documents”, as defined in the Indenture, securing the Notes and any other documents now existing or entered into after the date
hereof that create Liens on any assets or properties of the Company or any Subsidiaries of the Company to secure any Note Obligations. 
 “Notes” is defined in the recitals. 
 “Obligor” means the Company or any
Guarantor. 
 “Patent Collateral” means (a) all inventions and discoveries, whether patentable or not, all
letters patent and applications for letters patent throughout the world, including without limitation those patents referred to in Item A of Schedule III hereto, and any patent applications in preparation for filing, (b) all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the items described in clause (a), (c) all patent licenses, and other agreements providing any Grantor with the right to use any
items of the type referred to in clauses (a) and (b) above, and (d) all Proceeds of, and rights associated with, the foregoing (including licenses, royalties income, payments, claims, damages and Proceeds of infringement
suits), the right to sue third parties for past, present or future infringements of any patent or patent application, and for breach or enforcement of any patent license. 
 “Permitted Liens” means all Permitted Collateral Liens, as such term is defined in the Indenture. 
  

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 “Pledged Interests” means all Equity Interests or other ownership interests
of any Pledged Interests Issuer described in Item A of Schedule I hereto; all registrations, certificates, articles, by-laws, regulations, limited liability company agreements or constitutive agreements governing or representing any
such interests; all options and other rights, contractual or otherwise, at any time existing with respect to such interests, as such interests are amended, modified, or supplemented from time to time, and together with any interests in any Pledge
Interests Issuer taken in extension or renewal thereof or substitution therefor. 
 “Pledged Interests Issuer”
means each Person identified in Item A of Schedule I hereto as the issuer of the Pledged Shares or the Pledged Interests identified opposite the name of such Person. 
 “Pledged Note Issuer” means each Person identified in Item B of Schedule I hereto as the issuer of the
Pledged Notes identified opposite the name of such Person. 
 “Pledged Notes” means all promissory notes of any
Pledged Note Issuer evidencing Debt owed by any Obligor to any other Obligor delivered by any Grantor to a Senior Collateral Agent or to the Collateral Agent as Pledged Property hereunder, as such promissory notes, in accordance with
Section 7.3, are amended, modified or supplemented from time to time and together with any promissory note of any Pledged Note Issuer taken in extension or renewal thereof or substitution therefor. 
 “Pledged Property” means all Pledged Notes, Pledged Interests, Pledged Shares, all assignments of any amounts due or to
become due with respect to the Pledged Interests or the Pledged Shares, all other instruments which are now being delivered by any Grantor to a Senior Collateral Agent or the Collateral Agent or may from time to time hereafter be delivered by any
Grantor to a Senior Collateral Agent or the Collateral Agent for the purpose of pledge under this Security Agreement or any other Indenture Document, and all proceeds of any of the foregoing. 
 “Pledged Shares” means all Equity Interests of any Pledged Interests Issuer identified under Item A of Schedule
I which are delivered by any Grantor to a Senior Collateral Agent or the Collateral Agent as Pledged Property hereunder. 
 “Receivables” is defined in Section 2.1(c). 
 “Related Contracts” is
defined in Section 2.1(c). 
 “Secured Obligations” is defined in Section 2.2.

 “Secured Parties” means the Trustee, the Collateral Agent, the Noteholders and each other holder of, or
obligee in respect of, any Note Obligations. 
 “Securities Act” is defined in Section 6.2(a).

 “Security Agreement” is defined in the preamble. 
 “Senior Collateral Agent” has the meaning assigned to such term in the Intercreditor Agreement. 
  

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 “Senior Obligations” has the meaning assigned to such term in the
Intercreditor Agreement. 
 “Senior Obligations Security Documents” has the meaning assigned to such term in
the Intercreditor Agreement. 
 “Senior Obligations Governing Documents” means the Credit Agreement and any
Designated Senior Obligations Governing Documents, as defined in the Intercreditor Agreement. 
 “Senior Security
Agreement” is defined in the recitals. 
 “Subsidiary” means, with respect to any Person (the
“parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements
if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity, a majority of whose outstanding voting securities shall at any
time be owned by the parent or one more Subsidiaries of the parent. Unless expressly provided otherwise, all references herein to any “Subsidiary” or “Subsidiaries” means a Subsidiary or Subsidiaries of the Company. 

“Termination Date” means the date of satisfaction and discharge of the Indenture with respect to the Notes as described
in the Indenture. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect
on the date hereof. 
 “Trademark Collateral” means (a) (i) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles, service marks, certification marks, collective marks, logos and other source or business identifiers, and all goodwill of the business associated therewith, now existing
or hereafter adopted or acquired, including without limitation those trademarks referred to in Item B of Schedule III hereto, whether currently in use or not, all registrations and recordings thereof and all applications in connection
therewith, whether pending or in preparation for filing, including registrations, recordings and applications in the United States Patent and Trademark Office or in any office or agency of the United States of America, or any State thereof or any
other country or political subdivision thereof or otherwise, and all common-law rights relating to the foregoing, and (ii) the right to obtain all reissues, extensions or renewals of the foregoing (collectively referred to as the
“Trademark”), (b) all trademark licenses for the grant by or to any Grantor of any right to use any trademark, (c) all of the goodwill of the business connected with the use of, and symbolized by the items described in,
clause (a), and to the extent applicable clause (b), (d) the right to sue third parties for past, present and future infringements of any Trademark Collateral described in clause (a) and, to the extent applicable,
clause (b), and (e) all Proceeds of, and rights associated with, the foregoing, including any claim by any Grantor against third parties for past, present or future infringement or dilution of any Trademark, Trademark registration or
Trademark license, or for any injury to the goodwill associated with the use of any such Trademark or for breach or enforcement of any Trademark license and all rights corresponding thereto throughout the world. 
  

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 “Trade Secrets Collateral” means all common law and statutory trade secrets
and all other confidential, proprietary or useful information and all know-how obtained by or used in or contemplated at any time for use in the business of any Grantor, (all of the foregoing being collectively called a “Trade
Secret”), including all Documents and things embodying, incorporating or referring in any way to such Trade Secret, all Trade Secret licenses, and including the right to sue for and to enjoin and to collect damages for the actual or
threatened misappropriation of any Trade Secret and for the breach or enforcement of any such Trade Secret license. 
 “UCC” means the Uniform Commercial Code as in effect in the State of New York, as the same may be amended from time to time.  
 SECTION 1.2. Indenture Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Security Agreement, including its preamble and recitals, have the meanings
provided in the Indenture. 
 SECTION 1.3. UCC Definitions. Unless otherwise defined herein or the context otherwise
requires, terms for which meanings are provided in the UCC are used in this Security Agreement, including its preamble and recitals, with such meanings. 
 SECTION 1.4. Interest. For purposes of this Security Agreement, unless the context clearly requires otherwise, references to “interest” shall include Additional Interest and Contingent
Interest, as each such term is defined in the Indenture. 
 ARTICLE II 
 SECURITY INTEREST 
 SECTION 2.1. Grant of Security Interest. Each Grantor hereby pledges, hypothecates, assigns, charges, mortgages, delivers, and transfers to the Collateral Agent, for its benefit and the ratable benefit of each of the other Secured
Parties, and hereby grants to the Collateral Agent, for its benefit and the ratable benefit of each of the other Secured Parties, a continuing security interest in all of such Grantor’s following property, whether now or hereafter existing,
owned or acquired by such Grantor, and wherever located, (collectively, the “Collateral”): 
 (a) all equipment in all of its forms (including but not limited to drilling platforms and rigs and remotely operated vehicles, trenchers, and other equipment used by any Grantor, vehicles, motor vehicles, rolling stock, vessels, aircraft),
of such Grantor, wherever located, and all machinery, apparatus, installation facilities and other tangible personal property, and all parts thereof and all accessions, additions, attachments, improvements, substitutions, replacements and proceeds
thereto and therefore (any and all of the foregoing being the “Equipment”); 
 (b) all inventory
in all of its forms of such Grantor, wherever located, including (i) all oil, gas, or other hydrocarbons and all products and substances derived therefrom, all raw materials and work in process therefore, finished goods thereof, and materials
used or consumed in the manufacture or production thereof, (ii) all goods in which such Grantor has an interest in mass or a joint or other interest or right of any kind (including goods in which such Grantor has an interest or right as
consignee), and (iii) all

  

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goods which are returned to or repossessed by such Grantor, and all accessions thereto, products thereof and documents therefore (any and all such inventory, materials, goods, accessions,
products and documents being the “Inventory”); 
 (c) all accounts, money, payment intangibles,
deposit accounts (including the Collateral Accounts and all amounts on deposit therein and all cash equivalent investments carried therein and all proceeds thereof), contracts, contract rights, all rights constituting a right to the payment of
money, chattel paper, documents, documents of title, instruments, letters of credit, letter-of-credit rights and General Intangibles of such Grantor, whether or not earned by performance or arising out of or in connection with the sale or lease of
goods or the rendering of services, including all moneys due or to become due in repayment of any loans or advances, and all rights of such Grantor now or hereafter existing in and to all security agreements, guaranties, leases, agreements and other
contracts securing or otherwise relating to any such accounts, money, payment intangibles, deposit accounts, contracts, contract rights, rights to the payment of money, chattel paper, documents, documents of title, instruments, letters of credit,
letter-of-credit rights and General Intangibles (any and all such accounts, money, payment intangibles, deposit accounts, contracts, contract rights, rights to the payment of money, chattel paper, documents, documents of title, instruments, letters
of credit, letter-of-credit rights and General Intangibles being the “Receivables”, and any and all such security agreements, guaranties, leases, agreements and other contracts being the “Related Contracts”);

 (d) all Intellectual Property Collateral of such Grantor; 
 (e) all books, correspondence, credit files, records, invoices, tapes, cards, computer runs, writings, data bases,
information in all forms, paper and documents and other property relating to, used or useful in connection with, evidencing, embodying, incorporating or referring to, any of the foregoing in this Section 2.1; 
 (f) all governmental approvals, permits, licenses, authorizations, consents, rulings, tariffs, rates, certifications,
waivers, exemptions, filings, claims, orders, judgments and decrees (each a “Governmental Approval”), to the extent a security interest may be granted therein; provided that any Governmental Approval that by its terms or by
operation of law would be void, voidable, terminable or revocable if mortgaged, pledged or assigned hereunder is expressly excepted and excluded from the Liens and terms of this Security Agreement, including the grant of security interest in this
Section 2.1; 
 (g) all interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements, and all other agreements or arrangements designed to protect such Grantor against fluctuations in interest rates or currency exchange rates and all commodity hedge, commodity swap, exchange, forward, future, floor, collar or cap
agreements, fixed price agreements and all other agreements or arrangements designed to protect such Grantor against fluctuations in commodity prices; 
 (h) to the extent not included in the foregoing, all bank accounts, investment property, fixtures and supporting obligations; 
  

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 (i) all Pledged Interests, Pledged Notes, Pledged Shares and any other
Pledged Property whether now or hereafter delivered to a Senior Collateral Agent or the Collateral Agent in connection with this Security Agreement and all Distributions, interest, and other payments and rights with respect to such Pledged Property;

 (j) all accessions, substitutions, replacements, products, offspring, rents, issues, profits, returns, income
and proceeds of and from any and all of the foregoing Collateral (including proceeds which constitute property of the types described in clauses (a), (b), (c), (d), (e), (f), (g), (h), and (i) and proceeds deposited from time to time in any
lock boxes of such Grantor, and, to the extent not otherwise included, all payments and proceeds under insurance (whether or not the Collateral Agent is the loss payee thereof), or any condemnation award, indemnity, warranty or guaranty, payable by
reason of loss or damage to or otherwise with respect to any of the Collateral); and 
 (k) all of such
Grantor’s other property and rights of every kind and description and interests therein, including without limitation, all other “Accounts”, “Certificated Securities”, “Chattel Paper”,
“Commercial Tort Claims”, “Commodity Accounts”, “Commodity Contracts”, “Deposit Accounts”, “Documents”, “Equipment”, “Fixtures”,
“General Intangibles”, “Goods”, “Instruments”, “Inventory”, “Investment Property”, “Letter of Credit Rights”, “Letters of Credit”,
“Money”, “Proceeds”, “Promissory Notes”, “Securities”, “Securities Account”, “Security Entitlements”, “Supporting Obligations” and
“Uncertificated Securities” as such terms are defined in the UCC. 
 Notwithstanding anything to the contrary contained herein,
Excluded Stock shall be excluded from the Lien and security interest granted hereunder (and shall, as applicable, not be included as “Collateral”, “General Intangibles”, “Investment Property”, or “Pledged
Property” for the purposes hereof). 
 SECTION 2.2. Security for Obligations. This Security Agreement, and the
Collateral in which the Collateral Agent (for the benefit of the Secured Parties) is granted a security interest hereunder by each Grantor, secures the prompt and indefeasible payment in full and performance of all Note Obligations of each Grantor
and each other Obligor now or hereafter existing, whether for principal, interest, costs, fees, expenses or otherwise, howsoever created, arising or evidenced, whether direct or indirect, primary or secondary, fixed or absolute or contingent, joint
or several (all such Note Obligations, collectively, the “Secured Obligations”). 
 SECTION 2.3. Continuing
Security Interest; Transfer of Loans; Reinstatement. This Security Agreement shall create continuing security interests in the Collateral and shall (a) remain in full force and effect until the Termination Date, (b) be binding upon
each Grantor and its successors, transferees and assigns, and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent and each other Secured Party and its respective successors,
transferees and assigns, subject to the limitations set forth, and except as otherwise provided, in the Indenture or the Intercreditor Agreement. Without limiting the generality of the foregoing clause (c), any Noteholder may assign or otherwise
transfer (in whole or in part) any Note held by it as provided in the Indenture, and any successor or assignee thereof shall thereupon become vested with all the rights and benefits in respect thereof granted

  

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to such Secured Party under any Indenture Document (including this Security Agreement), or otherwise, subject, however, to any contrary provisions in such assignment or transfer. If at any
time all or any part of any payment theretofore applied by the Collateral Agent or any Secured Party to any of the Secured Obligations is or must be rescinded or returned by the Collateral Agent or any such Secured Party for any reason whatsoever
(including, without limitation, the insolvency, bankruptcy, reorganization or other similar proceeding of any Grantor or any other Person), such Secured Obligations shall, for purposes of this Security Agreement, to the extent that such payment is
or must be rescinded or returned, be deemed to have continued to be in existence, notwithstanding any application by the Collateral Agent or such Secured Party or any termination agreement or release provided to any Grantor, and this Security
Agreement shall continue to be effective or reinstated, as the case may be, as to such Secured Obligations, all as though such application by the Collateral Agent or such Secured Party had not been made. 
 SECTION 2.4. Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under
the contracts and agreements included in the Collateral to the extent set forth therein, and will perform all of its duties and obligations under such contracts and agreements to the same extent as if this Security Agreement had not been executed,
(b) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under any such contracts or agreements included in the Collateral, and (c) neither the Collateral
Agent nor any other Secured Party shall have any obligation or liability under any contracts or agreements included in the Collateral by reason of this Security Agreement, nor shall the Collateral Agent nor any Secured Party be obligated to perform
any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 
 SECTION 2.5. Delivery of Pledged Property. 
 (a) All
certificates or instruments representing or evidencing any Collateral, including all Pledged Shares and Pledged Notes, shall be delivered to and held by or on behalf of (or in the case of the Pledged Notes, endorsed to the order of) a Senior
Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) pursuant hereto, shall be in suitable form for transfer by delivery, and shall be accompanied by all necessary indorsements or instruments of transfer or
assignment, duly executed in blank. 
 (b) To the extent any of the Collateral constitutes an
“uncertificated security” (as defined in Section 8-102(a)(18) of the UCC) or a “security entitlement” (as defined in Section 8-102(a)(17) of the UCC), the applicable Grantor shall take and cause the appropriate Person
(including any issuer, entitlement holder or securities intermediary thereof) to take all actions necessary to grant “control” (as defined in Section 8-106 of the UCC) to a Senior Collateral Agent (or, after the Discharge of Senior
Obligations, the Collateral Agent), for the ratable benefit of the Secured Parties, over such Collateral. 
 SECTION 2.6.
Distributions on Pledged Shares. In the event that any Distribution with respect to any Pledged Shares or Pledged Interests pledged hereunder is permitted to be paid (in accordance with the Indenture), such Distribution or payment may be paid
directly to the

  

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applicable Grantor. If any Distribution is made in contravention of the Indenture, the applicable Grantor shall, subject to the rights and interests of the holders of any Senior Obligations, hold
the same segregated and in trust for the Collateral Agent until paid to the Collateral Agent in accordance with Section 4.1(e). 
 SECTION 2.7. Security Interest Absolute, etc. This Security Agreement shall in all respects be a continuing, absolute, unconditional and irrevocable grant of security interest, and shall remain in
full force and effect until the Termination Date, except as otherwise provided in the Indenture or the Intercreditor Agreement. All rights of the Secured Parties and the security interests granted to the Collateral Agent (for its benefit and the
ratable benefit of each other Secured Party) hereunder, and all obligations of each Grantor hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of (a) any lack of validity, legality or enforceability of any
Indenture Document, (b) the failure of any Secured Party (i) to assert any claim or demand or to enforce any right or remedy against any Grantor or any other Person under the provisions of any Indenture Document or otherwise, or
(ii) to exercise any right or remedy against any other guarantor of, or collateral securing, any Secured Obligations, (c) any change in the time, manner or place of payment of, or in any other term of, all or any part of the Secured
Obligations, or any other extension, compromise or renewal of any Secured Obligations, (d) any reduction, limitation, impairment or termination of any Secured Obligations (except in the case of the occurrence of the Termination Date) for any
reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to (and each Grantor hereby waives any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever by
reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Secured Obligations or otherwise, (e) any amendment to, rescission, waiver, or other
modification of, or any consent to or departure from, any of the terms of any Indenture Document, (f) any addition, exchange or release of any Collateral, or any surrender or non-perfection of any collateral, or any amendment to or waiver or
release or addition to, or consent to or departure from, any other guaranty held by any Secured Party securing any of the Secured Obligations, or (g) any other circumstance which might otherwise constitute a defense available to, or a legal or
equitable discharge of, any Grantor or any other Obligor, any surety or any guarantor. 
 SECTION 2.8. Waiver of
Subrogation. Until one year and one day after the Termination Date, each Grantor hereby irrevocably waives any claim or other rights which it may now or hereafter acquire against any Obligor that arise from the existence, payment, performance or
enforcement of such Grantor’s obligations under this Security Agreement or any other Indenture Document, including any right of subrogation, reimbursement, exoneration or indemnification, any right to participate in any claim or remedy of any
Secured Party against any Obligor or any collateral which any Secured Party now has or hereafter acquires, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including the right to take or receive
from any Obligor, directly or indirectly, in cash or other property or by set-off or in any manner, payment or security on account of such claim or other rights. If any amount shall be paid to any Grantor in violation of the preceding sentence and
the Secured Obligations shall not have been indefeasibly paid in full in cash, then, subject to the rights and interests of the holders of any Senior Obligations, such amount shall be deemed to have been paid to such Grantor for the benefit of, and
held in trust for, the Collateral Agent (on behalf of the Secured Parties), and shall forthwith be paid to the Collateral Agent to be credited and applied upon the

  

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Secured Obligations, whether matured or unmatured. Each Grantor acknowledges that it will receive direct and indirect benefits from the issuance of the Notes as contemplated by the Exchange
Agreement and that the waiver set forth in this Section 2.8 is knowingly made in contemplation of such benefits. 
 SECTION 2.9. Election of Remedies. Except as otherwise provided in the Indenture, if any Secured Party may, under applicable law, proceed to realize its benefits under any of this Security Agreement or the other Indenture Documents
giving any Secured Party a Lien upon any Collateral, either by judicial foreclosure or by non-judicial sale or enforcement, such Secured Party may, at its sole option, determine which of its remedies or rights it may pursue without affecting any of
its rights and remedies under this Security Agreement. If, in the exercise of any of its rights and remedies, any Secured Party shall forfeit any of its rights or remedies, including its right to enter a deficiency judgment against any Obligor or
any other Person, whether because of any applicable laws pertaining to “election of remedies” or the like, each Grantor hereby consents to such action by such Secured Party and waives any claim based upon such action, even if such action
by such Secured Party shall result in a full or partial loss of any rights of subrogation that such Grantor might otherwise have had but for such action by such Secured Party. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 

 In order to induce the Exchanging Noteholders to enter into the Exchange Agreement and to acquire the Notes, each Grantor
represents and warrants unto each Secured Party, as at date hereof and at the date of each pledge and delivery hereunder by such Grantor to a Senior Collateral Agent or the Collateral Agent of any Collateral (including each pledge and delivery of
any Pledged Shares or Pledged Notes), as set forth in this Article. 
 SECTION 3.1. Validity, etc. This Security
Agreement and the other Indenture Documents to which such Grantor is a party constitutes the legal, valid and binding obligations of such Grantor, enforceable against such Grantor in accordance with their respective terms (except, in any case, as
such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by principles of equity). 
 SECTION 3.2. Ownership, No Liens, etc. Such Grantor is the legal and beneficial owner of, and has good and defensible title to (and
has full right and authority to pledge, grant and assign) the Collateral, free and clear of all Liens, except for any Lien (a) granted pursuant to this Security Agreement in favor of the Collateral Agent, or (b) that is a Permitted Lien.
No effective UCC financing statement or other filing similar in effect covering all or any part of the Collateral is on file in any recording office, except those filed in favor of the Collateral Agent relating to this Security Agreement, those
filed to perfect the Permitted Liens or those as to which a duly authorized termination statement relating to such UCC financing statement or other instrument has been delivered to a Senior Collateral Agent or the Collateral Agent on or before the
date hereof. This Security Agreement creates a valid security interest in the Collateral, securing the payment of the Secured Obligations, and, except for the proper filing of the applicable filing statements with the Secretary of State of the
States of Delaware, Texas and Oklahoma, all filings and other actions necessary to perfect and protect such security interest have been duly taken and such security interest shall be a first priority security interest (subject to Permitted Liens).

  

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 SECTION 3.3. As to Equity Interests of the Subsidiaries, Investment Property.

 (a) With respect to the Pledged Shares, all such Pledged Shares are duly authorized and validly issued, fully
paid and non-assessable, and represented by a certificate. 
 (b) With respect to the Pledged Interests, no such
Pledged Interests (i) are dealt in or traded on securities exchanges or in securities markets, (ii) expressly provide that such Pledged Interests are securities governed by Article 8 of the UCC, or (iii) are held in a Securities
Account, except, with respect to this clause (b), Pledged Interests (A) for which a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) is the registered owner or (B) with respect to which the
Pledged Interests Issuer has agreed in an authenticated record with such Grantor and a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) to comply with any instructions of such Senior Collateral Agent (or,
after the Discharge of Senior Obligations, the Collateral Agent) without the consent of such Grantor. 
 (c) Such
Grantor has delivered all Certificated Securities constituting Collateral held by such Grantor to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), together with duly executed undated blank stock
powers, or other equivalent instruments of transfer reasonably acceptable to such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent). 
 (d) With respect to Uncertificated Securities constituting Collateral owned by such Grantor, such Grantor has caused the
Pledged Interests Issuer or other issuer thereof either (i) to register a Senior Collateral Agent (or, after Discharge of Senior Obligations, the Collateral Agent) as the registered owner of such security, or (ii) to agree in an
authenticated record with such Grantor and a Senior Collateral Agent (or, after Discharge of Senior Obligations, the Collateral Agent) that such Pledged Interests Issuer or other issuer will comply with instructions with respect to such security
originated by such Senior Collateral Agent (or, after Discharge of Senior Obligations, the Collateral Agent) without further consent of such Grantor. 
 (e) The percentage of the issued and outstanding Pledged Shares and Pledged Interests of each Issuer pledged by such Grantor hereunder is as set forth on Schedule I. All of the Pledged Shares and
Pledged Interests constitute one hundred percent (100%) of such Grantor’s interest in the applicable Pledged Interests Issuer and the percentage of the total membership, partnership and/or other equity interests in the Pledged Interests
Issuer indicated on Schedule I. 
 (f) Such Grantor has no outstanding rights, rights to subscribe,
options, warrants or convertible securities outstanding or any other rights outstanding whereby any Person would be entitled to acquire shares, member interests or units of any Pledged Interest Issuer. 
  

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 (g) In the case of each Pledged Note, all of such Pledged Notes have been
duly authorized, executed, endorsed, issued and delivered, and are the legal, valid and binding obligation of the issuers thereof, and are not in default. 
 SECTION 3.4. Grantor’s Name, Location, etc. 
 (a) (i)
The jurisdiction in which such Grantor is located for purposes of Sections 9-301 and 9-307 of the UCC is set forth in Item A-1 of Schedule II hereto, (ii) the place of business of such Grantor or, if such Grantor has more than one
place of business, the chief executive office of such Grantor and the office where such Grantor keeps its records concerning the Receivables, and all originals of all chattel paper which evidence Receivables, is set forth in Item A-2 of
Schedule II hereto, and (iii) such Grantor’s federal taxpayer identification number is set forth in Item A-3 of Schedule II hereto. 
 (b) Such Grantor has not been known by any legal name different from the one set forth on the signature page hereto, nor has
such Grantor been the subject of any merger or other corporate reorganization, except as set forth in Item B of Schedule II hereto. 
 (c) Such Grantor is not a party to any federal, state or local government contract except contracts with Mineral Management Services or other Federal leases. 
 (d) Such Grantor does not maintain any Deposit Accounts, Securities Accounts or Commodity Accounts with any Person, in each
case, except as set forth on Item C of Schedule II. 
 (e) None of the Receivables is evidenced by
a promissory note or other instrument other than a promissory note or instrument that has been delivered to a Senior Collateral Agent (or, after Discharge of Senior Obligations, the Collateral Agent) (with appropriate endorsements). 
 (f) Such Grantor is not the beneficiary of any Letters of Credit, except as set forth on Item D of Schedule II
(as such schedule may be amended or supplemented from time to time) hereto and such Grantor has obtained the consent of each issuer of any Letter of Credit with a stated amount in excess of $250,000 to the assignment of the proceeds of the letter of
credit to a Senior Collateral Agent (or, after Discharge of Senior Obligations, the Collateral Agent). 
 (g)
Such Grantor does not have Commercial Tort Claims (i) in which a suit has been filed by such Grantor, and (ii) where the amount of damages reasonably expected to be claimed exceeds $250,000, except as set forth on Item E of
Schedule II. 
 (h) The name set forth on the signature page attached hereto is the true and correct legal
name (as defined in the UCC) of such Grantor. 
 (i) Such Grantor has obtained a legal, valid and enforceable
consent of each issuer of any Letter of Credit with a stated amount in excess of $250,000 to the

  

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assignment of the Proceeds of such Letter of Credit to a Senior Collateral Agent (or, after Discharge of Senior Obligations, the Collateral Agent) and has not consented to, and is otherwise aware
of, any Person (other than a Senior Collateral Agent (or, after Discharge of Senior Obligations, the Collateral Agent)) having control (within the meaning of Section 9-107 of the UCC) over, or any other interest in any of such Grantor’s
rights in respect thereof. 
 SECTION 3.5. Possession of Inventory, Control; etc. Such Grantor (a) has exclusive
possession and control, subject to Permitted Liens, of the Equipment and Inventory, and (b) is the sole entitlement holder of its Accounts and no other Person (other than a Senior Collateral Agent (or, after Discharge of Senior Obligations, the
Collateral Agent) or any other Person with respect to Permitted Liens) has “control” or “possession” of, or any other interest in, any of its Accounts or any other securities or property credited thereto except as permitted
pursuant to this Security Agreement. 
 SECTION 3.6. Negotiable Documents, Instruments and Chattel Paper. Such Grantor
has delivered to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) possession of all originals of all Documents, Instruments, Promissory Notes, Pledged Notes and tangible Chattel Paper owned or held by
such Grantor (duly endorsed, in blank, if requested by such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent)). 
 SECTION 3.7. Intellectual Property Collateral. Such Grantor represents that except for any Patent Collateral, Trademark Collateral, and Copyright Collateral specified in Item A, Item
B and Item C, respectively, of Schedule III hereto, and any Trade Secrets Collateral, such Grantor neither owns and nor has any other interest in any Intellectual Property Collateral as of the date hereof, other than the
Computer Hardware and Software Collateral. Such Grantor further represents and warrants that, with respect to all Intellectual Property Collateral (a) such Intellectual Property Collateral is valid, subsisting, unexpired and enforceable and has
not been abandoned or adjudged invalid or unenforceable, in whole or in part except as could not reasonably be expected to result in a Material Adverse Change, (b) such Grantor is the sole and exclusive owner of the entire and unencumbered
right, title and interest in and to such Intellectual Property Collateral, subject to Permitted Liens, and no claim has been made that the use of such Intellectual Property Collateral does or may, conflict with, infringe, misappropriate, dilute,
misuse or otherwise violate any of the rights of any third party in any material respects, (c) such Grantor has made all necessary filings and recordations to protect its interest in such material Intellectual Property Collateral, including
recordations of any of its interests in the Patent Collateral and Trademark Collateral in the United States Patent and Trademark Office and in corresponding offices throughout the world, and its claims to the Copyright Collateral in the United
States Copyright Office and in corresponding offices throughout the world, and, to the extent necessary, has used proper statutory notice in connection with its use of any material patent, trademark and copyright in any of the Intellectual Property
Collateral, (d) such Grantor has taken all reasonable steps to safeguard its Trade Secrets and to its knowledge none of the Trade Secrets of such Grantor has been used, divulged, disclosed or appropriated for the benefit of any other Person
other than such Grantor, (e) to such Grantor’s knowledge, no third party is infringing upon any material Intellectual Property owned or used by such Grantor in any material respect, or any of its respective licensees, (f) no
settlement or consents, covenants not to sue,

  

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nonassertion assurances, or releases have been entered into by such Grantor or to which such Grantor is bound that adversely affects its rights to own or use any Intellectual Property except as
would not reasonably result in a Material Adverse Change, (g) other than to the Credit Facilities Collateral Agent, such Grantor has not made a previous assignment, sale, transfer or agreement constituting a present or future assignment, sale
or transfer of any Intellectual Property for purposes of granting a security interest or as Collateral that has not been terminated or released, (h) such Grantor uses adequate standards of quality in the manufacture, distribution, and sale of
all products sold and in the provision of all services rendered under or in connection with any trademarks and has taken all commercially reasonable action necessary to insure that any licensees of any trademarks owned by such Grantor use such
adequate standards of quality, (i) the consummation of the transactions contemplated by the Exchange Agreement and this Security Agreement will not result in the termination or material impairment of any material portion of the Intellectual
Property Collateral, and (j) such Grantor owns directly or is entitled to use by license or otherwise, any patents, trademarks, tradenames, Trade Secrets, copyrights, mask works, licenses, technology, know-how, processes and rights with respect
to any of the foregoing used in, and necessary for the conduct of such Grantor’s business in any material respect. 
 SECTION 3.8. Authorization, Approval, etc. Except as have been obtained or made and are in full force and effect, no Governmental Approval, authorization, approval or other action by, and no notice to or filing with, any Governmental
Authority or any other third party is required either (a) for the grant by such Grantor of the security interest granted hereby or for the execution, delivery and performance of this Security Agreement by such Grantor, (b) for the
perfection or maintenance of the security interests hereunder including the first priority (subject to Permitted Liens) nature of such security interest (except with respect to the filing statements or, with respect to Intellectual Property
Collateral, the recordation of any agreements with the U.S. Patent and Trademark Office or the U.S. Copyright Office) or the exercise by the Collateral Agent of its rights and remedies hereunder, or (c) for the exercise by the Collateral Agent
of the voting or other rights provided for in this Security Agreement, except (i) with respect to any Pledged Shares or Pledged Interests, as may be required in connection with a disposition of such Pledged Shares or Pledged Interests by laws
affecting the offering and sale of securities generally and (ii) any “change of control” or similar filings required by state licensing agencies. 
 SECTION 3.9. Best Interests. It is in the best interests of each Grantor (other than the Company) to execute this Security Agreement in as much as such Grantor will, as a result of being an
Affiliate or Subsidiary of the Company, derive substantial direct and indirect benefits from the transactions contemplated by the Exchange Agreement, and each Grantor agrees that the Exchanging Noteholders are relying on this representation in
agreeing to acquire the Notes. 
 SECTION 3.10. Certificated Equipment. Such Grantor has delivered, or will deliver as
set forth in Section 4.5, to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) possession of the originals of all certificates of title (with any necessary endorsements) with respect to Certificated
Equipment owned or held by such Grantor. 
 SECTION 3.11. Reaffirmation of Representations and Warranties. All of the
representations and warranties made by the Company or any other Obligor regarding any Grantor in the Exchange Agreement or in any other Indenture Document are true and correct in all respects as if such representations and warranties were
incorporated herein in their entirety and made by such Grantor. 
  

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 ARTICLE IV 
 COVENANTS 
 Each Grantor covenants and agrees that,
until the Termination Date, it will perform, comply with and be bound by the obligations set forth below. 
 SECTION 4.1. As
to Investment Property, etc. 
 (a) Equity Interests of Subsidiaries. No Grantor shall allow or permit
any of its Subsidiaries (i) that is a corporation, business trust, joint stock company or similar Person, to issue Uncertificated Securities, unless such Person promptly takes the actions set forth in Section 4.1(b)(ii) with respect
to any such Uncertificated Securities, (ii) that is a partnership or limited liability company, to (A) issue Equity Interests that are to be dealt in or traded on securities exchanges or in securities markets, (B) expressly provide in
its organizational documents that its Equity Interests are securities governed by Article 8 of the UCC, or (C) place such Subsidiary’s Equity Interests in a Securities Account, unless such Person promptly takes the actions set forth in
Section 4.1(b)(ii) with respect to any such Equity Interests, and (iii) to issue Equity Interests in addition to or in substitution for the Pledged Property or any other Equity Interests pledged hereunder, except for additional
Equity Interests issued to such Grantor; provided that (A) such Equity Interests are immediately pledged and delivered to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), and (B) such Grantor
delivers a supplement to Schedule I to the Collateral Agent identifying such new Equity Interests as Pledged Property, in each case pursuant to the terms of this Security Agreement. No Grantor shall permit any of its Subsidiaries to issue any
warrants, options, contracts or other commitments or other securities that are convertible to any of the foregoing or that entitle any Person to purchase any of the foregoing, and except for this Security Agreement or any other Indenture Documents
or any Senior Obligations Governing Documents, shall not, and shall not permit any of its Subsidiaries to, enter into any agreement creating any restriction or condition upon the transfer, voting or control of any Pledged Property. 
 (b) Investment Property (other than Certificated Securities). With respect to any Deposit Accounts, Securities
Accounts, Commodity Accounts, Commodity Contracts or Security Entitlements constituting Investment Property owned or held by any Grantor, such Grantor will, unless otherwise permitted under the Indenture or any Senior Obligations Governing
Documents, upon a Senior Collateral Agent’s (or, after the Discharge of Senior Obligations, the Collateral Agent’s) request either (i) cause the intermediary maintaining such Investment Property to execute a Control Agreement relating
to such Investment Property pursuant to which such intermediary agrees to comply with such Senior Collateral Agent’s (or, after the Discharge of Senior Obligations, the Collateral Agent’s) instructions with respect to such Investment
Property without further consent by such Grantor, or (ii) transfer such Investment Property to intermediary’s that have or will agree to execute such Control Agreements. With respect

  

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to any Uncertificated Securities (other than Uncertificated Securities credited to a Securities Account) constituting Investment Property owned or held by any Grantor, such Grantor will cause the
Pledged Interests Issuer or other issuer of such securities to either (i) register a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) as the registered owner thereof on the books and records of the
issuer, or (ii) execute a Control Agreement relating to such Investment Property pursuant to which the Pledged Interests Issuer or other issuer agrees to comply with a Senior Collateral Agent’s (or, after the Discharge of Senior
Obligations, the Collateral Agent’s) instructions with respect to such Uncertificated Securities without further consent by such Grantor. 
 (c) Certificated Securities (Stock Powers). Each Grantor agrees that all Pledged Shares (and all other certificated shares of Equity Interests constituting Collateral) delivered by such Grantor
pursuant to this Security Agreement will be accompanied by duly endorsed undated blank stock powers, or other equivalent instruments of transfer acceptable to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral
Agent). Each Grantor will, from time to time upon the request of a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), promptly deliver to such Senior Collateral Agent (or, after the Discharge of Senior
Obligations, the Collateral Agent) such stock powers, instruments and similar documents, satisfactory in form and substance to such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), with respect to the
Collateral as such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) may reasonably request and will, from time to time upon the request of a Senior Collateral Agent (or, after the Discharge of Senior
Obligations, the Collateral Agent) during the continuance of any Default, promptly transfer any Pledged Shares, Pledged Interests or other shares of Equity Interests constituting Collateral into the name of any nominee designated by such Senior
Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent). 
 (d) Continuous
Pledge. Each Grantor will (subject to the terms of the Indenture) deliver to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) and at all times keep pledged to the Collateral Agent pursuant hereto,
on a first-priority (subject to Permitted Liens), perfected basis all Pledged Property, Investment Property, all Dividends and Distributions with respect thereto, all Payment Intangibles to the extent they are evidenced by a Document, Instrument,
Promissory Note or Chattel Paper, and all interest and principal with respect to such Payment Intangibles, and all Proceeds and rights from time to time received by or distributable to such Grantor in respect of any of the foregoing Collateral. Each
Grantor agrees that it will, promptly (but in any event no later than ten (10) Business Days) following receipt thereof, deliver to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) possession of
all originals of Pledged Interests, Pledged Shares, Pledged Notes and any other Pledged Property, negotiable Documents, Instruments, Promissory Notes and Chattel Paper that it acquires following the date of this Security Agreement and shall deliver
to the Collateral Agent a supplement to Schedule I identifying any such new Pledged Interests, Pledged Shares, Pledged Notes or other Pledged Property. 
  

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 (e) Voting Rights; Dividends, etc. Each Grantor agrees: 

(i) that promptly upon receipt of notice of the occurrence and continuance of an Event of Default from the Collateral
Agent and without any request therefor by the Collateral Agent, so long as such Event of Default shall continue, subject to the rights and interests of the holders of any Senior Obligations, to deliver (properly endorsed where required hereby or
requested by the Collateral Agent) to the Collateral Agent all Distributions with respect to Investment Property, all interest, principal and other cash payments on Payment Intangibles, the Pledged Property and all Proceeds of the Pledged Property
or any other Collateral, in case thereafter received by such Grantor, all of which shall be held by the Collateral Agent as additional Collateral; and 
 (ii) if an Event of Default shall have occurred and be continuing and the Collateral Agent has notified such Grantor of the Collateral Agent’s intention to exercise its voting power under this
Section 4.1(e)(ii), 
 (A) the Collateral Agent may exercise (to the exclusion of such Grantor) the
voting power and all other incidental rights of ownership with respect to any Pledged Shares, Investment Property or other Equity Interests constituting Collateral. EACH GRANTOR HEREBY GRANTS THE COLLATERAL AGENT AN IRREVOCABLE PROXY (WHICH
IRREVOCABLE PROXY SHALL CONTINUE IN EFFECT UNTIL SUCH DEFAULT SHALL HAVE BEEN CURED OR WAIVED) EXERCISABLE UNDER SUCH CIRCUMSTANCES, TO VOTE THE PLEDGED SHARES, PLEDGED INTERESTS, INVESTMENT PROPERTY AND SUCH OTHER COLLATERAL; AND

 (B) the Grantor shall promptly deliver to the Collateral Agent such additional proxies and other documents as
may be necessary to allow the Collateral Agent to exercise such voting power. 
 All Distributions, interest, principal, cash payments, Payment
Intangibles and Proceeds that may at any time and from time to time be held by any Grantor but which such Grantor is then obligated to deliver to the Collateral Agent, shall, until delivery to the Collateral Agent, be held by such Grantor separate
and apart from its other property in trust for the Collateral Agent, subject to the rights and interests of the holders of any Senior Obligations. The Collateral Agent agrees that unless a Default shall have occurred and be continuing and the
Collateral Agent shall have given the notice referred to in Section 4.1(e), each Grantor shall be entitled to receive and retain all Distributions and shall have the exclusive voting power, and is granted a proxy, with respect to any
Equity Interests (including any of the Pledged Shares) constituting Collateral. The Collateral Agent shall, upon the written request of any Grantor, promptly deliver such proxies and other documents, if any, as shall be reasonably requested by such
Grantor which are necessary to allow such Grantor to exercise that voting power with respect to any such Equity Interests (including any of the Pledged Shares) constituting Collateral; provided, however, that no vote shall be cast, or consent,
waiver, or ratification given, or action taken by such Grantor that would violate any provision of the Indenture or any other Indenture Document (including this Security Agreement). 
  

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 SECTION 4.2. Organizational Documents; Change of Name, etc. No Grantor will change
its state of incorporation, formation or organization or its name, identity, organizational identification number or corporate structure unless such Grantor shall have (a) given the Collateral Agent at least thirty (30) days’ prior
notice of such change, (b) obtained the consent of the requisite Secured Parties, if such consent is so required by the Indenture or the Indenture Documents, and (c) taken all actions necessary or as requested by the Collateral Agent to
ensure that the Liens on the Collateral granted in favor of the Collateral Agent for the benefit of the Secured Parties remain perfected, first-priority Liens (subject to Permitted Liens). 
 SECTION 4.3. As to Accounts. 
 (a) Each Grantor shall have the right to collect all Accounts so long as no Event of Default shall have occurred and be continuing. 
 (b) Upon (i) the occurrence and continuance of an Event of Default and (ii) the delivery of notice by the
Collateral Agent to each Grantor, subject to the rights and interests of the holders of any Senior Obligations, all Proceeds of Collateral received by any Grantor shall be delivered in kind to the Collateral Agent for deposit in a Deposit Account of
such Grantor (A) maintained with the Collateral Agent or (B) maintained at a depositary bank other than the Collateral Agent to which such Grantor, the Collateral Agent and the depositary bank have entered into a Control Agreement in form
and substance acceptable to the Collateral Agent in its sole discretion providing that the depositary bank will comply with the instructions originated by the Collateral Agent directing disposition of the funds in the account without further consent
by such Grantor (any such Deposit Accounts, together with any other Deposit Accounts pursuant to which any portion of the Collateral is deposited with the Collateral Agent, a “Collateral Account,” and collectively, the
“Collateral Accounts”), and such Grantor shall not commingle any such Proceeds, and shall hold separate and apart from all other property, all such Proceeds in express trust for the benefit of the Collateral Agent until delivery
thereof is made to the Collateral Agent. 
 (c) Following the delivery of notice pursuant to clause
(b)(ii), the Collateral Agent shall have the right to apply any amount in the Collateral Account to the payment of any Secured Obligations which are due and payable or in accordance with the Indenture and the Indenture Documents. 
 (d) With respect to each of the Collateral Accounts, it is hereby confirmed and agreed that (i) deposits in such
Collateral Account are subject to a security interest as contemplated hereby, (ii) such Collateral Account shall be under the control of the Collateral Agent and (iii) the Collateral Agent shall have the sole right of withdrawal over such
Collateral Account; provided that withdrawals shall only be made during the existence of a Default. 
 (e) No
Grantor shall adjust, settle, or compromise the amount or payment of any Receivable, nor release wholly or partly any account debtor or obligor thereof, nor

  

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allow any credit or discount thereon; provided that, a Grantor may make such adjustments, settlements or compromises and release wholly or partly any account debtor or obligor thereof and allow
any credit or discounts thereon so long as (i) no Event of Default has occurred and is continuing, (ii) such action is taken in the ordinary course of business and consistent with past practices, (iii) such action is, in such
Grantor’s good faith business judgment, commercially reasonable, and (iv) the aggregate amount of such adjustments, settlements and compromises which are effected each fiscal year shall not exceed $200,000. 
 SECTION 4.4. As to Grantor’s Use of Collateral. 
 (a) Subject to clause (b), each Grantor (i) may in the ordinary course of its business, at its own expense, sell,
lease or furnish under the contracts of service any of the Inventory normally held by such Grantor for such purpose, and use and consume, in the ordinary course of its business, any raw materials, work in process or materials normally held by such
Grantor for such purpose, (ii) shall, at its own expense, endeavor to collect, as and when due, all amounts due with respect to any of the Collateral, including the taking of such action with respect to such collection as the Collateral Agent
may request following the occurrence and during the continuance of a Default or, in the absence of such request, as such Grantor may deem advisable, and (iii) may grant, in the ordinary course of business, to any party obligated on any of the
Collateral, any rebate, refund or allowance to which such party may be lawfully entitled, and may accept, in connection therewith, the return of Goods, the sale or lease of which shall have given rise to such Collateral. 
 (b) At any time following the occurrence and during the continuance of a Default, whether before or after the maturity of any
of the Secured Obligations, the Collateral Agent may (i) revoke any or all of the rights of any Grantor set forth in clause (a), (ii) notify any parties obligated on any of the Collateral to make payment to the Collateral Agent of
any amounts due or to become due thereunder, and (iii) enforce collection of any of the Collateral by suit or otherwise and surrender, release, or exchange all or any part thereof, or compromise or extend or renew for any period (whether or not
longer than the original period) any indebtedness thereunder or evidenced thereby. 
 (c) Upon request of the
Collateral Agent following the occurrence and during the continuance of a Default, each Grantor will, at its own expense, subject to the rights and interests of the holders of any Senior Obligations, notify any parties obligated on any of the
Collateral to make payment to the Collateral Agent of any amounts due or to become due thereunder. 
 (d) At any
time following the occurrence and during the continuation of a Default, the Collateral Agent may endorse, in the name of the applicable Grantor, any item, howsoever received by the Collateral Agent, representing any payment on or other Proceeds of
any of the Collateral. 
 SECTION 4.5. As to Equipment and Inventory and Goods. Not later than 30 days following the date
of this Security Agreement, each Grantor shall deliver the original certificates of title (with any necessary endorsements) with respect to all Certificated Equipment now owned

  

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by such Grantor to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent). Each Grantor hereby agrees that it shall (a) keep all of the
Equipment and Inventory (other than Inventory sold in the ordinary course of business) and Goods located in a jurisdiction within the United States of America or its offshore waters where all representations and warranties set forth in Article
III shall be true and correct, and all action required pursuant to the second sentence of Section 4.12 shall have been taken with respect to the Equipment and Inventory and Goods, and (b) pay promptly when due all property and
other taxes, assessments and governmental charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Equipment and Inventory and Goods, except to the extent the validity thereof is being
contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside. Notwithstanding the foregoing, the Grantors may keep Equipment, Inventory and Goods located in a jurisdiction outside of
the United States of America or its offshore waters so long as the aggregate book value of the Equipment, Inventory and Goods located in such foreign jurisdictions does not exceed $2,500,000 at any time. With respect to Certificated Equipment now or
hereafter owned by a Grantor, such Grantor shall be required to deliver such title to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) and, if such title is required to have been delivered to the
Collateral Agent, take any other action necessary to enable the Collateral Agent to perfect its Lien in such Equipment, including endorsing certificates of title or executing applications for transfer of title, as is reasonably required by the
Collateral Agent to enable it to properly perfect and protect its Lien on such Certificated Equipment and to transfer the same. 
 SECTION 4.6. As to Intellectual Property Collateral. Each Grantor covenants and agrees to comply with the following provisions as such provisions relate to any Intellectual Property Collateral material to the operations or business
of such Grantor: 
 (a) such Grantor will not (i) do or fail to perform any act whereby any material Patent
Collateral may lapse or become abandoned or dedicated to the public or unenforceable, (ii) permit any of its licensees to (A) fail to continue to use any of the Trademark Collateral in order to maintain all of the Trademark Collateral in
full force free from any claim of abandonment for non-use, (B) fail to maintain as in the past the quality of products and services offered under all of the Trademark Collateral, (C) fail to employ all of the Trademark Collateral
registered with any federal or state or foreign authority with an appropriate notice of such registration, (D) adopt or use any other Trademark which is confusingly similar or a colorable imitation of any of the Trademark Collateral,
(E) use any of the Trademark Collateral registered with any federal, state or foreign authority except for the uses for which registration or application for registration of all of the Trademark Collateral has been made, or (F) do or
permit any act or knowingly omit to do any act whereby any of the Trademark Collateral may lapse or become invalid or unenforceable, or (iii) do or permit any act or knowingly omit to do any act whereby any of the Copyright Collateral or any of
the Trade Secrets Collateral may lapse or become invalid or unenforceable or placed in the public domain except upon expiration of the end of an unrenewable term of a registration thereof, unless, in the case of any of the foregoing requirements in
clauses (i), (ii) and (iii), such Grantor shall either (x) reasonably and in good faith determine that any of such Intellectual Property Collateral is of negligible economic value to such Grantor, or (y) the loss
of the Intellectual Property Collateral would not be reasonably likely to result in a Material Adverse Change; 
  

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 (b) such Grantor shall promptly notify the Collateral Agent if it knows that
any application or registration relating to any material item of the Intellectual Property Collateral may become abandoned or dedicated to the public or placed in the public domain or invalid or unenforceable, or of any adverse determination or
development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any foreign counterpart thereof or any court) regarding
such Grantor’s ownership of any of the Intellectual Property Collateral, its right to register the same or to keep and maintain and enforce the same; 
 (c) in no event will such Grantor or any of its agents, employees, designees or licensees file an application for the registration of any material Intellectual Property Collateral with the United States
Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, unless it promptly informs the Collateral Agent, and upon request of the Collateral Agent
(subject to the terms of the Indenture), executes and delivers all agreements, instruments and documents as the Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest in such Intellectual Property
Collateral; 
 (d) such Grantor will take all necessary steps, including in any proceeding before the United
States Patent and Trademark Office, the United States Copyright Office or (subject to the terms of the Indenture) any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue any application (and to
obtain the relevant registration) filed with respect to, and to maintain any registration of, each material Intellectual Property Collateral, including the filing of applications for renewal, affidavits of use, affidavits of incontestability and
opposition, interference and cancellation proceedings and the payment of fees and taxes (except to the extent that dedication, abandonment or invalidation is permitted under the foregoing clause (a) or (b)); 
 (e) following the obtaining of an interest in any material Intellectual Property by such Grantor, such Grantor shall deliver
a supplement to Schedule II identifying such new Intellectual Property; and 
 (f) following the obtaining
of an interest in any material Intellectual Property by such Grantor or, following the occurrence and during the continuance of an Event of Default, upon the request of the Collateral Agent, such Grantor shall deliver all agreements, instruments and
documents the Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest in such Intellectual Property Collateral and as may otherwise be required to acknowledge or register or perfect the Collateral
Agent’s interest in any part of such item of Intellectual Property Collateral unless such Grantor shall determine in good faith (with the consent of the Collateral Agent) that any Intellectual Property Collateral is of negligible economic value
to such Grantor. 
  

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 SECTION 4.7. As to Letter-of-Credit Rights. 
 (a) Each Grantor, by granting a security interest in its Letter-of-Credit Rights to the Collateral Agent, intends to (and
hereby does) collaterally assign to the Collateral Agent its rights (including its contingent rights ) to the Proceeds of all Letter-of-Credit Rights of which it is or hereafter becomes a beneficiary or assignee. Promptly following the date on which
any Grantor obtains any Letter of Credit Rights after the date hereof, such Grantor shall (i) deliver a supplement to Schedule II identifying such new Letter-of-Credit Right and (ii) with respect to Letter of Credit Rights in excess
of $250,000 cause the issuer of each Letter of Credit and each nominated person (if any) with respect thereto to consent to the assignment of the Proceeds thereof to a Senior Collateral Agent (and, after the Discharge of Senior Obligations, the
Collateral Agent) in a consent agreement in form and substance reasonably satisfactory to such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) and deliver written evidence of such consent to the
Collateral Agent. 
 (b) During the existence of an Event of Default, each Grantor will, promptly upon request by
a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), (i) notify (and each Grantor hereby authorizes such Senior Collateral Agent (or , after the Discharge of Senior Obligations, the Collateral Agent)
to notify) the issuer and each nominated person with respect to each of the Letters of Credit that the Proceeds thereof have been assigned to such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) and any
payments due or to become due in respect thereof are to be made directly to such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) and (ii) arrange for such Senior Collateral Agent (or, after the
Discharge of Senior Obligations, the Collateral Agent) to become the transferee beneficiary Letter of Credit. 
 SECTION 4.8.
As to Commercial Tort Claims. Each Grantor covenants and agrees that, until the Termination Date, with respect to any Commercial Tort Claim in excess of $250,000 individually or in the aggregate hereafter arising, it shall deliver to the
Collateral Agent a supplement to Schedule II in form and substance reasonably satisfactory to the Collateral Agent, identifying such new Commercial Tort Claims. 
 SECTION 4.9. Electronic Chattel Paper and Transferable Records. If any Grantor at any time holds or acquires an interest in any
electronic chattel paper or any “transferable record,” as that term is defined in Section 201 of the U.S. Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the U.S. Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction, with a value in excess of $250,000, such Grantor shall promptly notify the Collateral Agent thereof and, at the request of a Senior Collateral Agent (or, after the Discharge of Senior
Obligations, the Collateral Agent), shall take such action as such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) may request to vest in such Senior Collateral Agent (or, after the Discharge of Senior
Obligations, the Collateral Agent) control (for the ratable benefit of Secured Parties) under Section 9-105 of the UCC of such electronic chattel paper or control under Section 201 of the Federal Electronic Signatures in Global and
National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable

  

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record. The Collateral Agent agrees with each Grantor that, if such control has been vested in it, the Collateral Agent will arrange, pursuant to procedures reasonably satisfactory to the
Collateral Agent and so long as such procedures will not result in the Collateral Agent’s loss of control, for such Grantor to make alterations to the electronic chattel paper or transferable record permitted under Section 9-105 of the UCC
or, as the case may be, Section 201 of the U.S. Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the U.S. Uniform Electronic Transactions Act for a party in control to allow without loss of control, unless
an Event of Default has occurred and is continuing or would occur after taking into account any action by such Grantor with respect to such electronic chattel paper or transferable record. 
 SECTION 4.10. Transfers and Other Liens. No Grantor shall: (a) sell, assign (by operation of law or otherwise) or otherwise
dispose of any of the Collateral, except Inventory in the ordinary course of business or as specifically permitted by the Indenture or any Senior Obligations Governing Documents, or (b) create or suffer to exist any Lien or other charge or
encumbrance upon or with respect to any of the Collateral to secure Debt of any Person or entity, except for the security interest created by this Security Agreement and except for Permitted Liens. 
 SECTION 4.11. Taxes. Each Grantor agrees to comply in all material respects with all applicable law, including the appropriate
payment (before the same become delinquent), by, or on behalf of, such Grantor of all taxes imposed upon such Grantor or any of its direct or indirect Subsidiaries or upon their property except to the extent being diligently contested in good faith
by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside on the books of such Grantor or such Subsidiaries, as applicable. 
 SECTION 4.12. Further Assurances, etc. Each Grantor shall warrant and defend the right, title and interest herein granted unto the Collateral Agent in and to the Collateral (and all right, title
and interest represented by the Collateral) against the claims and demands of all Persons whomsoever. Each Grantor agrees that, from time to time at its own expense, it will promptly execute and deliver all further instruments and documents, and
take all further action, that may be necessary or that the Collateral Agent may reasonably request, in order to perfect, preserve and protect the security interest granted or purported to be granted hereby in all material portions of the Collateral
(subject to the terms hereof and of the Indenture and the Intercreditor Agreement) or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Each Grantor agrees that, upon the
acquisition after the date hereof by such Grantor of any Collateral, with respect to which the security interest granted hereunder is not perfected automatically upon such acquisition, to take such actions with respect to such Collateral or any part
thereof as required by the Indenture Documents. Without limiting the generality of the foregoing, each Grantor will: 
 (a) from time to time upon the request of a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), promptly deliver to such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the
Collateral Agent) such stock powers, instruments and similar documents, reasonably satisfactory in form and substance to such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), with respect to such
Collateral as such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) may

  

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reasonably request and will from time to time upon the request of a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent), after the occurrence and during
the continuance of any Event of Default, promptly transfer any securities constituting Collateral into the name of any nominee designated by such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent); if any
Collateral shall be evidenced by an Instrument, negotiable Document, Promissory Note or tangible Chattel Paper, deliver and pledge to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) such Instrument,
negotiable Document, Promissory Note, Pledged Note or tangible Chattel Paper duly endorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance reasonably satisfactory to such Senior Collateral Agent (or,
after the Discharge of Senior Obligations, the Collateral Agent); 
 (b) file (and hereby authorizes the
Collateral Agent to file after delivery of a copy thereof to such Grantor) such filing statements or continuation statements, or amendments thereto, and such other instruments or notices (including any assignment of claim form under or pursuant to
the federal assignment of claims statute, 31 U.S.C. § 3726, any successor or amended version thereof or any regulation promulgated under or pursuant to any version thereof), as may be necessary or that the Collateral Agent may request in order
to perfect and preserve the security interests and other rights granted or purported to be granted to the Collateral Agent hereby. The authorization contained in this Section 4.12 shall be irrevocable and continuing until the Termination
Date; 
 (c) deliver to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral
Agent) and at all times keep pledged to the Collateral Agent pursuant hereto, on a first-priority, perfected basis (except for Permitted Liens), at the request of such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the
Collateral Agent), all Investment Property constituting Collateral, all Distributions with respect thereto (which shall only be delivered to a Senior Collateral Agent or the Collateral Agent during the continuance of a Default), and all interest and
principal with respect to Promissory Notes, and all Proceeds and rights from time to time received by or distributable to such Grantor in respect of any of the foregoing Collateral; 
 (d) not take or omit to take any action the taking or the omission of which would result in any impairment or alteration of
any obligation of the maker of any Payment Intangible or other Instrument constituting Collateral, except as provided in Section 4.4; 
 (e) not create any tangible Chattel Paper without placing a legend on such tangible Chattel Paper reasonably acceptable to the Collateral Agent indicating that the Collateral Agent has a security interest
in such Chattel Paper; 
 (f) furnish to the Collateral Agent, from time to time at the Collateral Agent’s
request, statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably request, all in reasonable detail; and 
  

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 (g) do all things reasonably requested by a Senior Collateral Agent (or,
after the Discharge of Senior Obligations, the Collateral Agent) in accordance with this Security Agreement in order to enable such Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) to have and maintain
control over the Collateral consisting of Investment Property, Deposit Accounts, Letter-of-Credit-Rights and Electronic Chattel Paper. 
 Each
Grantor agrees that a carbon, photographic or other reproduction of this Security Agreement or any UCC financing statement covering the Collateral or any part thereof shall be sufficient as a UCC financing statement where permitted by law. Each
Grantor hereby authorizes the Collateral Agent to file financing statements describing as the collateral covered thereby “all of the debtor’s personal property or assets”, “all assets” or words to that effect,
notwithstanding that such wording may be broader in scope than the Collateral described in this Security Agreement. 
 SECTION
4.13. Insurance. Each Grantor will maintain with financially sound and reputable insurance companies such insurance in such amounts and against such risks as may be customary in the case of reputable Persons of similar size engaged in the
same or similar lines of business, including without limitation property insurance with respect to all tangible Collateral and comprehensive general public liability insurance, or will self-insure to the extent customary for reputable Persons of
similar size engaged in the same or similar lines of business. Each such policy of insurance shall contain the insurer’s promise not to cancel the policy or allow the policy to lapse without renewal without 30 days’ prior written notice to
the Collateral Agent and shall name the Collateral Agent as an additional insured or (subject to the rights and interest of the holders of any Senior Obligations) lender loss payee, as appropriate, as its interests may appear. Each Grantor will
promptly notify the Collateral Agent of any loss or material damage to any material part of the Collateral. 
 SECTION
4.14. Compliance with the TIA. To the extent applicable, the Company will comply with TIA Section 314(b), relating to opinions of counsel regarding the Liens and security interest created pursuant to this Security Agreement and the other
Indenture Documents. 
 ARTICLE V 
 THE COLLATERAL AGENT 
 SECTION 5.1. Collateral Agent Appointed
Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Collateral Agent its attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral
Agent’s discretion, following the occurrence and during the continuance of an Event of Default, to take any action and to execute any instrument which the Collateral Agent may deem necessary or advisable to accomplish the purposes of this
Security Agreement, including (a) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral, (b) to receive, endorse, and
collect any drafts or other Instruments, Documents and Chattel Paper, in connection with clause (a) above, (c) to file any claims or take any action or institute any proceedings which the Collateral Agent may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Collateral Agent with respect to any of the Collateral,

  

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and (d) to perform the affirmative obligations of such Grantor hereunder. EACH GRANTOR HEREBY ACKNOWLEDGES, CONSENTS AND AGREES THAT THE POWER OF ATTORNEY GRANTED PURSUANT TO THIS SECTION
5.1 IS IRREVOCABLE AND COUPLED WITH AN INTEREST AND SHALL BE EFFECTIVE UNTIL THE TERMINATION DATE. 
 SECTION 5.2.
Collateral Agent May Perform. If any Grantor fails to perform any agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection
therewith shall be payable by such Grantor pursuant to Section 6.4 hereof and the Collateral Agent may from time to time take any other action which the Collateral Agent reasonably deems necessary for the maintenance, preservation or
protection of any of the Collateral or of its security interest therein. 
 SECTION 5.3. Collateral Agent Has No Duty.
The powers conferred on the Collateral Agent hereunder are solely to protect its interest (on behalf of the Secured Parties) in the Collateral and shall not impose any duty on it to exercise any such powers. Except for reasonable care of any
Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or responsibility for (a) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any Investment Property and any other Pledged Property, whether or not the Collateral Agent has or is deemed to have knowledge of such matters, or (b) taking any necessary
steps to preserve rights against prior parties or any other rights pertaining to any Collateral. 
 SECTION 5.4. Reasonable
Care. The Collateral Agent is required to exercise reasonable care in the custody and preservation of any of the Collateral in its possession; provided, that the Collateral Agent shall be deemed to have exercised reasonable care in the custody
and preservation of any of the Collateral (a) if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own personal property, or (b) if the Collateral Agent takes such action for that
purpose as any Grantor reasonably requests in writing at times other than upon the occurrence and during the continuance of an Event of Default; provided, further, that failure of the Collateral Agent to comply with any such request at any time
shall not in itself be deemed a failure to exercise reasonable care. 
 ARTICLE VI 
 REMEDIES 
 SECTION 6.1. Certain Remedies. If any Event of Default shall have occurred and be continuing: 
 (a) The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default under the UCC (whether
or not the UCC applies to the affected Collateral) and also may (i) take possession of any Collateral not already in its possession without demand and without legal process, (ii) require any Grantor to, and each Grantor hereby agrees that
it will, at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place to be designated

  

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by the Collateral Agent that is reasonably convenient to both parties, (iii) subject to applicable law or agreements with landlords, enter onto the property where any Collateral is located
and take possession thereof without demand and without legal process, (iv) without notice except as specified below, lease, license, sell or otherwise dispose of the Collateral or any part thereof in one or more parcels at public or private
sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale
shall be required by law, at least ten (10) days’ prior notice to the applicable Grantor of the time and place of any public sale or the time of any private sale is to be made shall constitute reasonable notification; provided, however,
that with respect to Collateral that is (x) perishable or threatens to decline speedily in value, or (y) is of a type customarily sold on a recognized market (including but not limited to, Investment Property), no notice of sale or
disposition need be given. For purposes of this Article VI, notice of any intended sale or disposition of any Collateral may be given by first-class mail, hand-delivery (through a delivery service or otherwise), facsimile or email, and shall
be deemed to have been “sent” upon deposit in the U.S. Mails with adequate postage properly affixed, upon delivery to an express delivery service or upon electronic submission through telephonic or internet services, as applicable. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
 (b) Each Grantor agrees and acknowledges that a commercially reasonable disposition of Inventory, Equipment, Goods, Computer Hardware and Software Collateral, or Intellectual Property may be by lease or license of, in addition to the sale
of, such Collateral. Each Grantor further agrees and acknowledges that each of the following shall be deemed a reasonable commercial disposition: (i) a disposition made in the usual manner on any recognized market, (ii) a disposition at
the price current in any recognized market at the time of disposition, and (iii) a disposition in conformity with reasonable commercial practices among dealers in the type of property subject to the disposition. 
 (c) All cash Proceeds received by the Collateral Agent in respect of any sale of, collection from, or other realization upon,
all or any part of the Collateral shall be, subject to the rights and interests of the holders of any Senior Obligations, applied by the Collateral Agent against all or any part of the Secured Obligations as set forth in the Indenture. The
Collateral Agent shall not be obligated to apply or pay over for application noncash proceeds of collection or enforcement unless (i) the failure to do so would be commercially unreasonable, and (ii) the affected party has provided the
Collateral Agent with a written demand to apply or pay over such noncash proceeds on such basis. 
 (d) The
Collateral Agent may do any or all of the following: (i) transfer all or any part of the Collateral into the name of the Collateral Agent or its nominee, with or without disclosing that such Collateral is subject to the Lien hereunder,
(ii) notify the

  

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parties obligated on any of the Collateral to make payment to the Collateral Agent of any amount due or to become due thereunder, (iii) withdraw, or cause or direct the withdrawal, of all
funds with respect to any Collateral Account or any other Deposit Account subject to an Account Control Agreement, (iv) enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part
thereof, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto, (v) endorse any checks, drafts, or other writings in the applicable
Grantor’s name to allow collection of the Collateral, (vi) take control of any Proceeds of the Collateral, or (vii) execute (in the name, place and stead of the applicable Grantor) endorsements, assignments, stock powers and other
instruments of conveyance or transfer with respect to all or any of the Collateral. 
 SECTION 6.2. Securities Laws. If
the Collateral Agent shall determine to exercise its right to sell all or any of the Collateral that are Equity Interests pursuant to Section 6.1, each Grantor agrees that, upon request of the Collateral Agent, such Grantor will, at its
own expense: 
 (a) execute and deliver, and cause (or, with respect to any issuer which is not a Subsidiary of
such Grantor, use its reasonable efforts to cause) each Pledged Interests Issuer or other issuer of the Collateral contemplated to be sold and the directors and officers thereof to execute and deliver, all such instruments and documents, and do or
cause to be done all such other acts and things, as may be necessary or, in the reasonable opinion of the Collateral Agent, advisable to register such Collateral under the provisions of the Securities Act of 1933, as from time to time amended (the
“Securities Act”), and cause the registration statement relating thereto to become effective and to remain effective for such period as prospectuses are required by law to be furnished, and to make all amendments and supplements
thereto and to the related prospectus which, in the reasonable opinion of the Collateral Agent, are necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the SEC applicable thereto;

 (b) use its reasonable efforts to exempt the Collateral under the state securities or “Blue Sky”
laws and to obtain all necessary Governmental Approvals for the sale of the Collateral, as requested by the Collateral Agent; 
 (c) cause (or, with respect to any issuer that is not a Subsidiary of such Grantor, use its reasonable efforts to cause) each such Pledged Interests Issuer or other issuer to make available to its
security holders, as soon as practicable, an earnings statement that will satisfy the provisions of Section 11(a) of the Securities Act; and 
 (d) do or cause to be done all such other acts and things as may be reasonably necessary to make such sale of the Collateral or any part thereof valid and binding and in compliance with applicable law.

 Each Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Collateral Agent or the
Secured Parties by reason of the failure by such Grantor to perform any of the covenants contained in this Section and consequently agrees that, if such Grantor shall fail to perform any of such covenants, it shall pay, as liquidated damages

  

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and not as a penalty, an amount equal to the value (as reasonably determined by the Collateral Agent in good faith) of such Collateral on the date the Collateral Agent shall demand compliance
with this Section 6.2. 
 SECTION 6.3. Compliance with Restrictions. Each Grantor agrees that in any sale of
any of the Collateral whenever an Event of Default shall have occurred and be continuing, the Collateral Agent is hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is
necessary in order to avoid any violation of applicable law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain
qualifications, and restrict such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral), or in
order to obtain any required approval of the sale or of the purchaser by any Governmental Authority or official, and each Grantor further agrees that such compliance shall not result in such sale being considered or deemed not to have been made in a
commercially reasonable manner, nor shall the Collateral Agent be liable nor accountable to such Grantor for any discount allowed by the reason of the fact that such Collateral is sold in compliance with any such limitation or restriction.

 SECTION 6.4. Indemnity and Expenses. 
 (a) Each Grantor hereby indemnifies and holds harmless the Collateral Agent, each Secured Party and each of their respective
officers, directors, employees and agents (the “Indemnified Parties”) from and against any and all claims, losses and liabilities arising out of or resulting from this Security Agreement or any other Indenture Document (including,
without limitation, enforcement of this Security Agreement), except claims, losses or liabilities resulting from such Indemnified Party’s gross negligence, willful misconduct or unlawful acts; PROVIDED, HOWEVER, THAT IT IS THE INTENTION OF
THE PARTIES HERETO THAT EACH INDEMNIFIED PARTY BE INDEMNIFIED IN THE CASE OF ITS OWN NEGLIGENCE (OTHER THAN GROSS NEGLIGENCE), REGARDLESS OF WHETHER SUCH NEGLIGENCE IS SOLE OR CONTRIBUTORY, ACTIVE OR PASSIVE, IMPUTED, JOINT OR TECHNICAL. If and
to the extent that the foregoing undertaking may be unenforceable for any reason, each Grantor hereby agrees to make the maximum contribution to the payment and satisfaction of each of the foregoing which is permissible under applicable law.

 (b) Other than as set forth in clause (c) below, each Grantor will upon demand pay to the
Collateral Agent and any counsel the amount of any and all expenses, including the reasonable fees and disbursements of its counsel and of any experts and agents, which the Collateral Agent and any counsel may incur in connection herewith, including
without limitation in connection with the administration of this Security Agreement and the custody, preservation, use or operation of, any of the Collateral. 
 (c) Each Grantor will upon demand pay to the Collateral Agent and any counsel the amount of any and all expenses, including
the fees and disbursements of its counsel and of any experts and agents, which the Collateral Agent and any counsel may incur in connection with (i) the sale of, collection from, or other realization upon, any of

  

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the Collateral, (ii) the exercise or enforcement of any of the rights of the Collateral Agent or any of the Secured Parties hereunder, or (iii) the failure by any Grantor to perform or
observe any of the provisions hereof. 
 SECTION 6.5. Warranties. The Collateral Agent may sell the Collateral without
giving any warranties or representations as to the Collateral. The Collateral Agent may disclaim any warranties of title or the like. Each Grantor agrees that this procedure will not be considered to adversely affect the commercial reasonableness of
any sale of the Collateral. 
 ARTICLE VII 
 OTHER AGREEMENTS 
 SECTION 7.1. Intercreditor Agreement.
Notwithstanding any other provision contained herein, this Security Agreement, the Liens created hereby and the rights, remedies, duties and obligations provided for herein are subject in all respects to the provisions of the Intercreditor Agreement
and, to the extent provided therein, the Senior Obligations Security Documents. In the event of any conflict or inconsistency between the provisions of this Security Agreement and the Intercreditor Agreement, the provisions of the Intercreditor
Agreement shall control. 
 SECTION 7.2. Indenture. To the fullest extent possible, the terms and provisions of the
Indenture shall be read together with the terms and provisions of this Security Agreement so that the terms and provisions of this Security Agreement do not conflict with the terms and provisions of the Indenture; provided, however, notwithstanding
the foregoing, in the event that any of the terms or provisions of this Security Agreement conflict with any terms or provisions of the Indenture, the terms or provisions of the Indenture shall govern and control for all purposes; provided that the
inclusion in this Security Agreement of terms and provisions, supplemental rights or remedies in favor of the Collateral Agent not addressed in the Indenture shall not be deemed to be a conflict with the Indenture and all such additional terms,
provisions, supplemental rights or remedies contained herein shall be given full force and effect. 
 ARTICLE VIII

 MISCELLANEOUS PROVISIONS 
 SECTION 8.1. Security Document. This Security Agreement is a Security Document (as defined in the Indenture) executed pursuant to the Indenture and shall (unless otherwise expressly indicated
herein) be construed, administered and applied in accordance with the terms and provisions thereof. 
 SECTION 8.2. Binding
on Successors, Transferees and Assigns; Assignment. Subject to the limitations set forth, and except as otherwise provided, in the Indenture and the Intercreditor Agreement, this Security Agreement shall remain in full force and effect until the
Termination Date, shall be binding upon each Grantor and its successors, transferees and assigns and shall inure to the benefit of and be enforceable by each Secured Party and its successors, transferees and assigns; provided that no Grantor shall
(unless otherwise permitted under the terms of the Indenture or this Security Agreement) assign any of its obligations hereunder without the Collateral Agent’s prior written consent. 
 SECTION 8.3. Amendments, etc. No amendment to or waiver of any provision of this Security Agreement, nor consent to any departure by
any Grantor from its obligations under this

  

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Security Agreement, shall in any event be effective unless the same shall be in writing and signed by the Collateral Agent and such Grantor and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. 
 SECTION 8.4. Notices. Except as otherwise
provided in this Security Agreement, all notices and other communications provided for hereunder shall be in writing or by facsimile and addressed, delivered or transmitted to the appropriate party at the address or facsimile number of such party
specified in the Indenture or on the signature pages of this Security Agreement or at such other address or facsimile number as may be designated by such party in a notice to the other party. Except as otherwise provided in this Security Agreement,
any notice or other communication, if mailed and properly addressed with postage prepaid or if properly addressed and sent by pre-paid courier service, shall be deemed given when received; any such notice or other communication, if transmitted by
facsimile, shall be deemed given when transmitted and electronically confirmed. 
 SECTION 8.5. Release of Liens.
Collateral shall be released from the Liens created by this Security Agreement as and to the extent provided in the Indenture. 
 SECTION 8.6. No Waiver; Remedies. In addition to, and not in limitation of Section 2.7, no failure on the part of any Secured Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by
law. 
 SECTION 8.7. Headings. The various headings of this Security Agreement are inserted for convenience only and
shall not affect the meaning or interpretation of this Security Agreement or any provisions thereof. 
 SECTION 8.8.
Severability. Any provision of this Security Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Security Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 
 SECTION 8.9. Counterparts. This Security Agreement may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement. Delivery of an executed counterpart of a signature page to this Security Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Security Agreement. 
 SECTION 8.10. Consent as Holder of Equity. Each Grantor hereby consents to (a) the execution by each other Grantor of this
Security Agreement and grant by each other Grantor of a security interest, encumbrance, pledge and hypothecation in all Pledged Interests and other Collateral of such other Grantor to the Collateral Agent pursuant hereto, and (b) without
limiting the generality of the foregoing, each Grantor consents to the transfer of any Pledged Interest to a Senior Collateral Agent (or, after the Discharge of Senior Obligations, the Collateral Agent) or its nominee following an Event of Default
and to the substitution of a Senior Collateral Agent

  

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(or, after the Discharge of Senior Obligations, the Collateral Agent) or its nominee as a partner under the limited partnership agreement or as a member under the limited liability company
agreement, in any case, as heretofore and hereafter amended. 
 SECTION 8.11. Additional Grantors. Additional
Subsidiaries of the Company may from time to time enter into this Security Agreement as a Grantor. Upon execution and delivery after the date hereof by the Collateral Agent and such Subsidiary of an instrument in the form of Annex 1,
such Subsidiary shall become a Grantor hereunder with the same force and effect as if originally named as a Grantor herein. The execution and delivery of any instrument adding an additional Grantor as a party to this Security Agreement shall not
require the consent of any other Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor as a party to this Security Agreement. 
 SECTION 8.12. Waiver of Jury Trial. EACH GRANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES TO THE FULLEST EXTENT
PERMITTED BY LAW ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, EACH INDENTURE DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF THE COLLATERAL AGENT, ANY OTHER SECURED PARTY OR ANY OBLIGOR IN CONNECTION THEREWITH. EACH GRANTOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF
EACH OTHER INDENTURE DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE COLLATERAL AGENT, THE TRUSTEE AND EACH EXCHANGING NOTEHOLDER ENTERING INTO THE INDENTURE DOCUMENTS. 
 SECTION 8.13. Governing Law, Entire Agreement, etc. This Security Agreement shall be deemed to be a contract made under and shall be
governed by, and construed and enforced in accordance with, the laws of the State of New York, except to the extent that the validity or perfection of the security interests hereunder, or remedies hereunder, in respect of any particular Collateral
are governed by the laws of a jurisdiction other than the State of New York. 
 SECTION 8.14. Miscellaneous. THIS WRITTEN
AGREEMENT AND THE OTHER INDENTURE DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES. 
 [Remainder of this page intentionally left blank. Signature pages follow.] 
  

 -35- 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be duly
executed and delivered by its authorized officer as of the date first above written. 
  

			
	GRANTORS:
	
	 FLOTEK INDUSTRIES, INC.

		
	By	 	 /s/ John Chisholm

		 	John Chisholm
		 	President
	
	 TELEDRIFT COMPANY
 FLOTEK PAYMASTER, INC.
 MATERIAL TRANSLOGISTICS, INC.
 PETROVALVE, INC.
 TURBECO, INC.
 USA PETROVALVE, INC.
 FLOTEK INTERNATIONAL, INC.
 PADKO INTERNATIONAL INCORPORATED
 FLOTEK ECUADOR MANAGEMENT, LLC
 FLOTEK ECUADOR INVESTMENTS, LLC

		
	By	 	 /s/ John Chisholm

		 	John Chisholm
		 	President
	
	 SOONER ENERGY SERVICES, LLC
 CESI MANUFACTURING, LLC
 CESI CHEMICAL, INC.

		
	By	 	 /s/ John Chisholm

		 	John Chisholm
		 	Chief Executive Officer
	
	 FLOTEK INDUSTRIES FZE

		
	By	 	 /s/ John Chisholm

		 	John Chisholm
		 	President

  

 Signature Page to Junior Lien Pledge and Security Agreement 

					
	COLLATERAL AGENT:
	
	 U.S. BANK NATIONAL ASSOCIATION

		
	By:	 	 /s/ Steven A. Finklea

		 	Name:	 	Steven A. Finklea
		 	Title:	 	Vice President
	
	Address:
	
	U.S. Bank National Association
	5555 San Felipe Street
	Suite 1150
	Houston, Texas
	Facsimile: (713) 235-9213
	Attention: Corporate Trust Services

  

 Signature Page to Junior Lien Pledge and Security Agreement 

 SCHEDULE I 
 to Junior Lien Pledge and Security Agreement 
 ITEM A – PLEDGED INTERESTS

 Common Stock 
  

										
	 Pledged Interests Issuer (corporate)
	  	Cert. #	  	# of
Shares	  	Authorized
Shares	  	% of Shares
Pledged	 
	 Padko International Incorporated
	  	2	  	50,000	  	500,000	  	100	% 
	 USA Petrovalve, Inc.
	  	2	  	1,000	  	100,000	  	100	% 
	 Turbeco, Inc.
	  	4	  	500	  	100,000	  	100	% 
	 Petrovalve, Inc.
	  	2	  	1,000	  	1,000	  	100	% 
	 Material Translogistics, Inc.
	  	1	  	1,000	  	100,000	  	100	% 
	 Flotek Paymaster, Inc.
	  	1	  	1,000	  	100,000	  	100	% 
	 CESI Chemical, Inc.
	  	1	  	500	  	5,000,000	  	100	% 
	 Teledrift Company
	  	2	  	1,000	  	10,000	  	100	% 
	 Flotek Industries FZE
	  	22924	  	1	  	1	  	100	% 
	 Flotek International, Inc.
	  	1	  	1,000	  	100,000	  	100	% 

 Limited
Liability Company Interests 
  

						
	 Pledged Interests Issuer (limited liability company)
	  	% of Limited Liability
Company Interests Pledged	 	 	 Type of Limited Liability
 Company Interests Pledged

	 Sooner Energy Services, LLC
	  	100	% 	 	Membership Interests
	 CESI Manufacturing, LLC
	  	100	% 	 	Membership Interests
	 Flotek Ecuador Management, LLC
	  	100	% 	 	Membership Interests
	 Flotek Ecuador Investments, LLC
	  	100	% 	 	Membership Interests

  

 Signature I to Junior Lien Pledge and Security Agreement 

 Partnership Interests 
  

					
	 Pledged Interests Issuer (partnership)
	  	% of Partnership
Interests Owned
	  	% of Partnership
Interests Pledged
	 NONE.
	  		  	

 ITEM B – PLEDGED NOTES 
 1. Pledged Note Issuer Description: 
 NONE. 
  

 Signature I to Junior Lien Pledge and Security Agreement 

 SCHEDULE II 
 to Junior Lien Pledge and Security Agreement 
  

	Item A-1.	Location of Grantor for purposes of UCC. 

 Flotek Industries, Inc.: Delaware 
 Padko International Incorporated: Oklahoma 
 Sooner Energy Services, LLC: Oklahoma 
 USA
Petrovalve, Inc.: Texas 
 CESI Manufacturing, LLC: Oklahoma 
 Turbeco, Inc.: Texas 
 Petrovalve, Inc.: Delaware 
 Material Translogistics, Inc.: Texas 
 Flotek
Paymaster, Inc.: Texas 
 CESI Chemical, Inc.: Oklahoma 
 Teledrift Company: Delaware 
 Flotek Industries FZA: Jebel Ali Free Zone, Dubai, United Arab
Emirates 
 Flotek International, Inc.: Delaware 
 Flotek Ecuador Investments, LLC: Texas 
 Flotek Ecuador Management, LLC: Texas 
  

	Item A-2.	Grantor’s place of business or principal office. 

 Flotek Industries, Inc., 
 USA Petrovalve, Inc., 
 Turbeco, Inc., 
 Petrovalve, Inc., 
 Material Translogistics, Inc., 
 Flotek Paymaster,
Inc., 
 Teledrift Company, 
 Flotek
International, Inc., 
 Flotek Ecuador Investments, LLC, and 
 Flotek Ecuador Management, LLC: 
 2930 W. Sam Houston Pkwy N. 
 Houston, Texas 77043 
 Padko International
Incorporated, 
 Sooner Energy Services, LLC, 
 CESI Chemical, Inc., and 
 CESI Manufacturing, LLC: 
 1004 Plainsman Road 
 Marlow, Oklahoma 73055 
 Flotek Industries FZE: Jebel Ali Free Zone, Dubai, United Arab Emirates 
  

 Signature II to Junior Lien Pledge and Security Agreement 

	Item A-3.	Taxpayer ID number. 

 Flotek Industries,
Inc.: 90-0023731 
 Padko International Incorporated: 73-1443489 
 Sooner Energy Services, LLC: 73-1501526 
 USA Petrovalve, Inc.: 76-0448098 
 CESI Manufacturing, LLC: 98-0372943 
 Turbeco, Inc.:
76-0228889 
 Petrovalve, Inc.: 76-0513130 
 Material Translogistics, Inc.: 73-1605226 
 Flotek Paymaster, Inc.: 30-0094158 
 CESI Chemical, Inc.: 73-1591850 
 Teledrift Company:
26-1869123 
 Flotek Industries FZE: None 
 Flotek International, Inc.: 27-2091474 
 Flotek Ecuador Investments, LLC: 27-2091569 
 Flotek Ecuador Management, LLC: 27-2091663 
  

	Item B.	Merger or other corporate reorganization. 

 Description of Merger: 
 CESI Chemical, Inc.: Esses Inc., Equipment Specialties Inc., Plainsman Technology, Inc., IBS 2000, Inc.
and Flotek Acquisition Sub, Inc. were each merged into CESI Chemical, Inc.  
 Material Translogistics, Inc.: CESI Acquistion,
Inc. was merged into Material Translogistics, Inc.  
 Teledrift Company: Trinity Tool, Inc. and Spidle Sales & Service,
Inc. were each merged into Teledrift Company. 
 Sooner Energy Services, LLC: Sooner Energy Services, Inc. was converted into Sooner
Energy Services, LLC. 
 CESI Manufacturing, LLC: SES Holdings, Inc. was converted into and its name changed to CESI Manufacturing, LLC.

 Turbeco, Inc.: CAVO Drilling Motors, Ltd. Co. was merged into Turbeco, Inc. 
  

	Item C.	Deposit Accounts and Securities Accounts. 

  

			
	Deposit Accounts:	    	
		
	 Account Description
	    	 Account Number

		
	Wells Fargo - Flotek Industries Inc. - WellsOne Account(Master)	    	412-1097273

  

 Signature II to Junior Lien Pledge and Security Agreement 

			
		
	Wells Fargo - Flotek Industries Inc. - WellsOne Account(Disbursement Acct)	    	412-1097299
		
	Wells Fargo - Flotek Industries Inc. - WellsOne Account(Payroll)	    	412-1097281
		
	Wells Fargo - Flotek Industries Inc. - WellsOne Account(Flexible Spending Acct)	    	412-1097265
		
	ING Bank Alphen A/D RIJN - CESI Chemical Inc.	    	68.01.14.769
		
	BankFirst - PADKO International Incorporated	    	500002100
		
	BankFirst - Sooner Energy Services, LLC CD	    	4007006921
		
	HSBC Bank Middle East – Flotek Industries FZE	    	011122215001

 Securities Accounts: 
 NONE. 
  

	Item D.	Letter of Credit Rights. 

 NONE.

  

	Item E.	Commercial Tort Claims. 

 NONE.

  

 Signature II to Junior Lien Pledge and Security Agreement 

 SCHEDULE III – A 
 to Junior Lien Pledge and Security Agreement 
 INTELLECTUAL
PROPERTY COLLATERAL 
  

	Item A.	Patent Collateral. 

 Issued Patents 
  

									
	 Country
	 	 Patent No.
	 	 Filing Date
	 	 Inventor(s)
	 	 Title

					
	USA	 	6,533,034	 	3/18/2003	 	Troy Barger	 	Centralized Stop Collar for Floating Centralizer
					
	USA	 	5,829,952	 	11/3/1998	 	Darrel W. Shadden	 	Check Valve with Reversible Valve Ball and Seat
					
	Canada	 	2,017,405	 	2/21/1995	 		 	Ball and Seat-Type Valve for Downhole Rod Pump
					
	Canada	 	2,478,433	 	12/8/2009	 	John T. Pursley, David L. Holcomb and Glenn S. Penny	 	Composition and Process for Well Cleaning
					
	Venezuela	 	52500	 	10/7/1994	 		 	Ball and Seat-Type Valve for Downhole Rod Pump
					
	USA	 	6,761,215	 	7/13/2004	 	James Eric Morrison and Guy Morrison, III	 	Downhole Separator Method
					
	China (Peoples Republic)	 	ZL03824239.7	 	7/18/2007	 		 	Downhole Separator and Method

  

 Signature III to Junior Lien Pledge and Security Agreement 

									
	 Country
	 	 Patent No.
	 	 Filing Date
	 	 Inventor(s)
	 	 Title

					
	Eurasian Patent Organization	 	007040	 	8/18/2006	 		 	Downhole Separator and Method
					
	USA	 	7,122,509	 	10/17/2006	 	John Todd Sanner, Glenn S. Penny and Roger Padgham	 	High Temperature Foamer Formulations for Downhole Injection
					
	USA	 	7,544,639	 	6/9/2009	 	John T. Pursley, David L. Holcomb and Glenn S. Penny	 	Composition and Process for the Treatment of Hydrogen Sulfide
					
	USA	 	7,380,606	 	6/3/2008	 	John T. Pursley, David L. Holcomb and Glenn S. Penny	 	Composition and Process for Well Cleaning
					
	Australia	 	2003278716	 	1/8/2009	 		 	Downhole Separator and Method

 Pending Patent
Applications 
  

									
	 Country
	 	 Serial No.
	 	 Filing Date
	 	 Inventor(s)
	 	 Title

					
	Patent Cooperation Treaty	 	PCTUS9602445	 	2/23/1996	 		 	Improved Valve Plunger for a Ball and Seat-Type Check Valve
					
	Canada	 	2,497,929	 	8/20/2003	 		 	Downhole Separator and Method

  

 Signature III to Junior Lien Pledge and Security Agreement 

									
	 Country
	 	 Serial No.
	 	 Filing Date
	 	 Inventor(s)
	 	 Title

					
	Patent Cooperation Treaty/European Patent Office	 	03716227.8	 	2/28/2003	 	John T. Pursley, David L. Holcomb and Glenn S. Penny	 	Composition and Process for Well Cleaning
					
	Patent Cooperation Treaty/Norwegian National	 	2004 4148	 	2/28/2003	 	John T. Pursley, David L. Holcomb and Glenn S. Penny	 	Composition and Process for Well Cleaning
					
	USA	 	 339,248
  
 Abandoned 1/5/09
	 	1/25/2006	 	Michael M. Brezinski	 	Method of Treating a Subterranean Formation in the Presence of Ferric Ions and/or Sulfide Ions
					
	USA	 	518,648	 	9/11/2006	 	Manoj Gopalan and Stephen B. Poe	 	Measurement While Drilling Apparatus and Method of Using the Same
					
	Patent Cooperation Treaty	 	Publication No. WO/2007/033126	 	9/12/2006	 		 	Measurement While Drilling Apparatus and Method of Using the Same
					
	USA	 	Application No. 12/156,201	 	5/30/2008	 		 	Process for Well Cleaning
					
	USA	 	Application No. 12/268,408	 	11/10/2008	 		 	Drag-Reducing Copolymer Compositions
					
	USA	 	Application No. 61/174,617	 	5/1/2009	 		 	Low Friction Centralizer

  

 Signature III to Junior Lien Pledge and Security Agreement 

									
	 Country
	 	 Serial No.
	 	 Filing Date
	 	 Inventor(s)
	 	 Title

					
	USA	 	 Application No. 12/618,535
  
 Priority No. 61/114,125
	 	11/13/2009	 		 	Water-in-Oil Microemulsions for Oilfield Applications

 Patent Applications in Preparation 
 NONE. 
  

 Signature III to Junior Lien Pledge and Security Agreement 

 SCHEDULE III – B 
 to Junior Lien Pledge and Security Agreement 
  

	Item B.	Trademark Collateral 

 Trademarks 
  

							
	 Country
	 	 Trademark
	 	 Registration No.
	 	 Issue Date

				
	USA	 	STIMLUBE	 	3,620,715	 	5/12/2009

 Trademark Applications in
Preparation 
  

			
	 Country
	 	 Trademark

		
	USA	 	FLOTEK
		
	USA	 	PETROVALVE
		
	USA	 	CESI
		
	USA	 	“OPEN CIRCLE” SYMBOL

  

 Signature III to Junior Lien Pledge and Security Agreement 

 SCHEDULE III – C 
 to Junior Lien Pledge and Security Agreement 
  

	Item C.	Copyright Collateral. 

 NONE. 
  

 Signature III to Junior Lien Pledge and Security Agreement 

 Annex 1 to Junior Lien Pledge and Security Agreement 
 SUPPLEMENT NO.          dated as of
                    , 20     (the “Supplement”), to the Junior Lien Pledge and Security Agreement dated as of
March 31, 2010 (as amended, supplemented, restated, or otherwise modified from time to time, the “Security Agreement”) among Flotek Industries, Inc., a Delaware corporation (the “Company”) and each subsidiary
of the Company signatory thereto (together with the Company, the “Grantors” and individually, a “Grantor”), in favor of U.S. Bank National Association, as Collateral Agent (in such capacity, together with its
successors and assigns, the “Collateral Agent”) for the benefit of each of the Secured Parties (as defined in the Security Agreement). 
 A. Reference is made to that certain Indenture dated as of March 31, 2010 among the Company, as Issuer, each of the subsidiaries of the Company party thereto, as Guarantors (the
“Guarantors”), and U.S. Bank National Association, as Trustee (in such capacity, the “Trustee”), as amended and supplemented by the First Supplemental Indenture dated March 31, 2010 among the Company, as
Issuer, the Guarantors, and the Trustee (as so amended and supplemented, and as further amended, restated, supplemented or otherwise modified from time to time, the “Indenture”). 
 B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement
and the Indenture. 
 C. Section 8.11 of the Security Agreement provides that additional Subsidiaries of the Company may
become Grantors under the Security Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary of the Company (the “New Grantor”) is executing this Supplement in accordance with
the requirements of the Indenture to become a Grantor under the Security Agreement. 
 Accordingly, the Collateral Agent and the
New Grantor agree as follows: 
 SECTION 1. In accordance with Section 8.11 of the Security Agreement, the New Grantor by
its signature below becomes a Grantor under the Security Agreement with the same force and effect as if originally named therein as a Grantor and the New Grantor hereby agrees (a) to all the terms and provisions of the Security Agreement
applicable to it as a Grantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor thereunder are true and correct on and as of the date hereof. In furtherance of the foregoing, the New
Grantor, as security for the payment and performance in full of the Secured Obligations (as defined in the Security Agreement), does hereby create and grant to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties,
their successors and assigns as provided in the Security Agreement, a continuing security interest in and lien on all of the New Grantor’s right, title and interest in and to the Collateral (as defined in the Security Agreement) of the New
Grantor. Each reference to a “Grantor” in the Security Agreement shall be deemed to include the New Grantor. The Security Agreement is hereby incorporated herein by reference. 
  

 Annex I to Junior Lien Pledge and Security Agreement 
 Page 1 of 5 

 SECTION 2. The New Grantor represents and warrants to the Collateral Agent and the other
Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms (subject to applicable bankruptcy,
reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in
equity or at law)). 
 SECTION 3. This Supplement may be executed in counterparts, each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Collateral Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of the New
Grantor and the Collateral Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement. 
 SECTION 4. The New Grantor hereby agrees that the schedules attached to the Security Agreement are hereby supplemented by the corresponding
schedules attached to this Supplement. The New Grantor hereby represents and warrants that the information provided in the schedules attached hereto are true and correct as of the date hereof. 
 SECTION 5. The New Grantor hereby expressly acknowledges and agrees to the terms of Section 6.4. (Indemnity and Expenses) of the
Security Agreement and expressly acknowledges the irrevocable proxy provided in Section 4.1(e) of the Security Agreement. In furtherance thereof, NEW GRANTOR HEREBY GRANTS THE COLLATERAL AGENT AN IRREVOCABLE PROXY (WHICH IRREVOCABLE PROXY
SHALL CONTINUE IN EFFECT UNTIL THE TERMINATION DATE) EXERCISABLE UNDER THE CIRCUMSTANCES PROVIDED IN SECTION 4.1 OF THE SECURITY AGREEMENT, TO VOTE THE PLEDGED SHARES, PLEDGED INTERESTS, INVESTMENT PROPERTY AND SUCH OTHER COLLATERAL. 

SECTION 6. Except as expressly supplemented hereby, the Security Agreement shall remain in full force and effect. 
 SECTION 7. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE
OF NEW YORK. 
 SECTION 8. In case any one or more of the provisions contained in this Supplement should be held invalid,
illegal or unenforceable in any respect, neither party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, but the validity, legality and enforceability of the
remaining provisions contained herein and in the Security Agreement shall not in any way be affected or impaired.

  

 Annex I to Junior Lien Pledge and Security Agreement 
 Page 2 of 5 

 
The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions. 
 SECTION 9. All communications and notices hereunder
shall be in writing and given as provided in the Security Agreement. All communications and notices hereunder to the New Grantor shall be given to it at the address set forth under its signature hereto. 
 SECTION 10. The New Grantor agrees to reimburse the Collateral Agent for its reasonable out-of-pocket expenses in connection with this
Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral Agent. 
 SECTION 11.
NEW GRANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, EACH
INDENTURE DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE COLLATERAL AGENT OR ANY OTHER SECURED PARTY OR ANY GRANTOR IN CONNECTION THEREWITH. NEW GRANTOR ACKNOWLEDGES AND AGREES THAT IT
HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER INDENTURE DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE COLLATERAL AGENT, THE TRUSTEE AND EACH
EXCHANGING NOTEHOLDER ENTERING INTO THE INDENTURE DOCUMENTS. 
 THIS SUPPLEMENT, THE SECURITY AGREEMENT AND THE OTHER
INDENTURE DOCUMENTS, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. 
 THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO. 
  

 Annex I to Junior Lien Pledge and Security Agreement 
 Page 3 of 5 

 IN WITNESS WHEREOF, the New Grantor and the Collateral Agent have duly executed this
Supplement to the Security Agreement as of the day and year first above written. 
  

			
	[Name of New Grantor]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	Address:	 	  

		 	  

		 	  

	
	 U.S. BANK NATIONAL ASSOCIATION,

	
	as Collateral Agent
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Annex I to Junior Lien Pledge and Security Agreement 
 Page 4 of 5 

 SCHEDULES TO SUPPLEMENT NO. 1 
 [AS APPROPRIATE] 
  

 Annex I to Junior Lien Pledge and Security Agreement 
 Page 5 of 5

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