Document:

EX-10.5

 Exhibit 10.5 

FLOTEK INDUSTRIES, INC. 

RESTRICTED STOCK AGREEMENT 

1.    Grant of Restricted Stock. Subject to the conditions described in this agreement (the “Award
Agreement”) and in the Flotek Industries Inc. 2014 Long-Term Incentive Plan, as amended from time to time (the “Plan”), Flotek Industries, Inc., a Delaware corporation (the “Company”), hereby agrees to grant
                 (“Participant”) shares of “Restricted Stock” of the Company. 

2.    Number of Shares of Restricted Stock Granted.
                 shares of Restricted Stock (Common Stock of the Company, $0.0001 par value per share). 

3.    Grant Date.
                . 

4.    Vesting. Subject to the satisfaction of the terms and conditions set forth in the Plan and this Award
Agreement, including Participant’s continued employment/service with the Company through the applicable Vesting date(s), one-half (1/2) of the Restricted Stock granted hereunder shall Vest on
December 31, 2018, and the remaining one-half (1/2) of the Restricted Stock granted hereunder shall Vest on December 31, 2019. 

5.    Issuance and Transferability. 

(a)    Registration and Restricting Legend. Upon grant, the Restricted Stock granted hereunder shall
be registered in the name of Participant and, unless and until such Restricted Stock vests, shall be left on deposit with the Company, or in trust or escrow pursuant to an agreement satisfactory to the Company, until such time as the restrictions on
transfer have lapsed. If the shares of Restricted Stock are represented by certificates, such certificates shall be marked with the following legend: 

“The shares represented by this certificate have been issued pursuant to the terms of the Flotek Industries, Inc. 2014 Long-Term Incentive
Plan, as amended from time to time, and may not be sold, pledged, transferred, assigned or otherwise encumbered in any manner except as is set forth in the terms of the Restricted Stock Agreement dated
                .” 

(b)    Book Entry Form. If the shares are held in book entry form, then such entry will reflect, in
a manner sufficient to effect in a legally enforceable form that such shares of Restricted Stock are subject to the restrictions of this Award Agreement and the Plan. 

(c)    Stock Power. Participant will deliver to the Company a stock power, in substantially the form
as Exhibit A-1 attached hereto or such form as required by the Company, endorsed in blank, with respect to each Award of Restricted Stock. 

(d)    Release of Restrictions. Upon Vesting of any portion of the shares of Restricted Stock and
satisfaction of any other conditions required by the Plan or pursuant to this Award Agreement, the Company shall promptly either issue a stock certificate, without such restricted legend, for any shares of the Restricted Stock that have Vested, or,
if the shares are held in book entry form, the Company shall remove the notations on the book entry registrations for any shares of the Restricted Stock that have Vested. 

 (e)    Prohibition on Transfer. Until restrictions
lapse, the Restricted Stock shall not be transferable. No right or benefit hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities, or torts of Participant. Any purported assignment, alienation, pledge,
attachment, sale, transfer or other encumbrance of the Restricted Stock, regardless of by whom initiated or attempted, prior to the lapse of restrictions shall be void and unenforceable against the Company. If, notwithstanding the foregoing, an
assignment, alienation, pledge, attachment, sale, transfer or other encumbrance of the Restricted Stock is effected by operation of law, court order or otherwise, the affected Restricted Stock shall remain subject to the risk of forfeiture, Vesting
requirement and all other terms and conditions of this Award Agreement. In the case of Participant’s death or Disability, Participant’s Vested rights under this Award Agreement (if any) may be exercised and enforced by Participant’s
guardian or legal representative. 
 6.    Forfeiture. 

(a)    In the event of Participant’s Termination for a reason other than a reason that causes Vesting
pursuant to Section 6(b) or 6(c) of this Agreement, the unvested portion of the Restricted Stock held by Participant at that time shall immediately be forfeited and the Company shall repurchase such forfeited shares from the Participant for the
lesser of (i) the amount paid by the Participant to the Company for such shares, if any, or (ii) the Fair Market Value of an equivalent number of shares of Common Stock determined on the date the Restricted Stock is forfeited. 

(b)    The occurrence of any of the following events shall cause the portion of the Restricted Stock which
is not yet Vested to be considered immediately Vested: (i) a Change of Control, (ii) the death of Participant, (iii) the Disability of Participant, or (iv) a termination by the Participant for Good Reason which occurs within 12
months after a Change in Control (as determined in the Plan). For purposes hereof, “Good Reason” shall exist upon the occurrence of one of the following Company actions (unless Participant consents in writing to such action(s)): (i) a
material reduction of the Participant’s salary and Participant’s benefits to which the Participant was entitled immediately prior to such reduction, (ii) a material reduction in the duties, authority or responsibilities relative to
the Participant’s duties, authority or responsibilities as in effect immediately prior to such reduction, or (iii) the relocation of the Participant to a facility or a location more than fifty (50) miles from the
Participant’s then present location; provided, however, that (A) Participant must provide the Company with written notice of the occurrence of such action(s) within 60 days of the initial occurrence of such action(s) and of his
or her intent to terminate employment based on such action(s), (B) the written notice must describe the event constituting Good Reason in reasonable detail, and (C) within 30 days from the date that such written notice is received by the
Company, the Company must cure such action(s). 
 (c)    A Termination of the Participant by the Company
which is not for Cause (and at a time that the Participant is otherwise willing and able to continue in employment) shall cause the portion of the Restricted Stock which is not yet Vested but which pursuant to its terms would with the passage of
time only become Vested within twelve (12) months of the date of Termination to be considered immediately Vested. For clarity, (i) a Termination of the Participant by the Company which is not for Cause shall not cause the Vesting of any
other portion of the Restricted Stock than that referred to in the immediately preceding sentence and (ii) no Termination causing Vesting pursuant to Section 6(b) shall be considered a Termination by the Company which is without Cause.

 7.    Ownership Rights. Subject to any reservations, conditions
or restrictions set forth in this Award Agreement and/or the Plan, upon grant to Participant of the Restricted Stock, Participant shall be entitled to all voting rights applicable to the Restricted Stock during the Restricted Period. In the event of
forfeiture of shares of Restricted Stock, the Participant shall have no further rights with respect to such Restricted Stock. 

8.    Reorganization of the Company. The existence of this Award Agreement shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; any merger or consolidation of the Company;
any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the Restricted Stock or the rights thereof; the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar character or otherwise. 

9.    Certain Restrictions. By executing this Award Agreement, Participant acknowledges that he will enter
into such written representations, warranties and agreements and execute such documents as the Company may reasonably request in order to comply with the securities law or any other applicable laws, rules or regulations, or with this Award Agreement
or the terms of the Plan. 
 10.    Amendment and Termination. This Award Agreement or the Plan may be
amended or terminated in accordance with the terms of the Plan. 
 11.    Taxes and Withholdings. 

(a)    Tax Consequences. The granting, Vesting and/or sale of all or any portion of the Restricted
Stock may trigger tax liability. Participant agrees that he shall be solely responsible for any such tax liability. Participant is encouraged to contact his/her tax advisor to discuss any tax implications which may arise in connection with the
Restricted Stock. 
 (b)    Withholding. Participant acknowledges that the Vesting of Restricted
Stock granted pursuant to this Award Agreement, the making of an election under Section 83(b) of the Code and the Vesting and payment of any accrued dividends may result in federal, state or local tax withholding obligations. Participant
understands and acknowledges that the Company will not deliver shares of Common Stock or make any payment of accrued dividends until it is satisfied that appropriate arrangements have been made to satisfy any tax obligation under this Award
Agreement or the Plan and agrees to make appropriate arrangements suitable to the Company for satisfaction of all tax withholding obligations. Further, Participant hereby agrees and grants to the Company the right to withhold from any payments or
amounts of compensation, payable in cash or otherwise, in order to meet any tax withholding obligations under this Award Agreement or the Plan. As such, if the Company requests that Participant take any action required to effect any action described
in this Section and to satisfy the tax withholding obligation pursuant to this Award Agreement and the Plan, Participant hereby agrees to promptly take any such action.  

(c)    Section 83(b). Participant understands that any election under Section 83(b) of the Code
with regard to the Restricted Stock must be made within thirty (30) days of the Grant Date and that, in the event of such election, Participant will so notify the Company in writing on or before such date. 

 12.    No Guarantee of Tax Consequences. The Company, Board and
Committee make no commitment or guarantee to Participant that any federal, state or local tax treatment will apply or be available to any person eligible for benefits under this Award Agreement and assumes no liability whatsoever for the tax
consequences to Participant. 
 13.    Severability. In the event that any provision of this Award
Agreement is, becomes or is deemed to be illegal, invalid, or unenforceable for any reason, or would disqualify the Plan or this Award Agreement under any law deemed applicable by the Board or the Committee, such provision shall be construed or
deemed amended as necessary to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Board or the Committee, materially altering the intent of the Plan or this Award Agreement, such
provision shall be stricken as to such jurisdiction, the Participant or this Award Agreement, and the remainder of this Award Agreement shall remain in full force and effect. 

14.    Terms of the Plan Control. This Award Agreement and the underlying Award are made pursuant to the
Plan. Notwithstanding anything in this Award Agreement to the contrary, the terms of the Plan, as amended from time to time and interpreted and applied by the Committee, shall govern and take precedence. All capitalized terms not otherwise defined
herein shall have the meanings set forth in the Plan, the terms of which are incorporated herein by reference. 

15.    Governing Law. This Award Agreement shall be construed in accordance with (excluding any conflict or
choice of law provisions of) the laws of the State of Delaware to the extent federal law does not supersede and preempt Delaware law. 

16.    Consent to Electronic Delivery; Electronic Signature. Except as otherwise prohibited by law, in lieu
of receiving documents in paper format, Participant agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectuses
supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other Award made or offered by the Company. Electronic delivery may be
via a Company electronic mail system or by reference to a location on a Company intranet to which Participant has access. Participant hereby consents to any and all procedures the Company has established or may establish for an electronic signature
system for delivery and acceptance of any such documents that the Company may be required to deliver, and agrees that his/her electronic signature is the same as, and shall have the same force and effect as, his/her manual signature. 

[SIGNATURE PAGE FOLLOWS] 

 
			
	COMPANY:
	
	FLOTEK INDUSTRIES, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
		
	Date:	 	 
	
	PARTICIPANT:
	
	 
	
	Address:
	 
	
	 
		
	Date:Exhibit

WAIVER AND RELEASE AGREEMENT
Pursuant to the terms of that certain Employment Agreement between me (Mark Cashiola) and C&J Energy Services Ltd., dated June 15, 2016, as amended November 30, 2016, and assigned to and assumed by C&J Energy Services, Inc. as successor to C&J Energy Services Ltd. effective January 6, 2017 (the “Employment Agreement”), and in exchange for (A) the benefits provided in Section 4.3(b) of the Employment Agreement, except as modified herein, and (B) the benefits provided in this Waiver and Release Agreement (herein so called), which are in addition to and, with respect to the 2018 Annual Bonus, in replacement of, the benefits provided in the Employment Agreement, including (1) the waiver of certain post-employment restrictions contained in the Employment Agreement as set forth on Appendix I hereto, (2) the accelerated vesting of the 7,755 performance shares granted on December 13, 2017, which acceleration I acknowledge will occur solely by reason of this Waiver and Release Agreement and without regard to the terms of any other agreement between me and the Company, and (3) immediate cash payment of the 2018 Annual Bonus in an amount based on the target value determined by the Compensation Committee for the year, which immediate payment based on target value I acknowledge is in replacement of the payment that would otherwise be due pursuant to Section 4.3(b)(1) of the Employment Agreement, which immediate cash payment will occur solely by reason of this Waiver and Release Agreement and without regard to the terms of any other agreement between me and the Company (collectively the “Separation Benefits”),  I hereby  waive all claims against and release: (i) C&J Energy Services, Inc. and its directors, officers, employees, agents, insurers, investors, predecessors, successors and assigns (collectively referred to as the “Company”), (ii) all of the affiliates (including all parent companies and all wholly or partially owned subsidiaries) of the Company and their respective directors, officers, employees, agents, insurers, investors, predecessors, successors and assigns (collectively referred to as the “Affiliates”), (iii) the Company’s and its Affiliates’ employee benefit and incentive plans and the fiduciaries and agents of said plans (collectively referred to as the “Benefit Plans”); and (iv) the Company’s and its Affiliates’ equity incentive and equity investment plans and the fiduciaries and agents of said plans (collectively referred to as the “Equity Plans”) from any and all claims, demands, actions, liabilities and damages arising out of or relating in any way to my employment with or separation from employment with the Company and its Affiliates other than benefits due pursuant to Section 4.3(b) of the Employment Agreement (as modified herein) and rights and benefits I am entitled to under the Benefit Plans or Equity Plans. (The Company, its Affiliates, the Benefit Plans and the Equity Plans are sometimes hereinafter collectively referred to as the “Released Parties.”)  I expressly acknowledge that I would not otherwise be entitled to any of the Separation Benefits (or any portion thereof) but for my timely entry into (and non-revocation of) this Waiver and Release Agreement.
I understand that signing this Waiver and Release Agreement is an important legal act. I acknowledge that I have been advised (and am hereby advised in writing) to consult an attorney before signing this Waiver and Release Agreement. I understand that, in order to be eligible for the Separation Benefits, I must sign (and return to the Company) on or before April 11, 2018 this Waiver and Release Agreement before I will receive the Separation Benefits. I acknowledge that I have been given at least twenty-one (21) days to consider whether to accept the Separation Benefits and whether to execute this Waiver and Release Agreement.
In exchange for the Separation Benefits (and any portion thereof), (1) I agree not to sue in any local, state and/or federal court regarding or relating in any way to my employment with or separation from employment with the Company and/or any of its Affiliates, and (2) I knowingly and voluntarily waive all claims and release the Released Parties from any and all claims, demands, actions, liabilities, and damages, whether known or unknown, arising out of or relating in any way to my employment with or separation from employment with the Company and/or any of its Affiliates, except to the extent that my rights are vested under the terms of any employee benefit plans sponsored by the Company and its Affiliates and except with respect to such rights or claims as may arise after the date this Waiver and Release Agreement is executed by me. This Waiver and Release Agreement includes, but is not limited to, claims and causes of action under: Title VII of the Civil Rights Act of 1964, as amended; the Age 

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Discrimination in Employment Act of 1967, as amended (including as amended by the Older Workers Benefit Protection Act of 1990); the Civil Rights Act of 1866, as amended; the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990; the Workers Adjustment and Retraining Notification Act of 1988; the Pregnancy Discrimination Act of 1978; the Employee Retirement Income Security Act of 1974, as amended; the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended; the Family and Medical Leave Act of 1993; the Occupational Safety and Health Act; the the Texas Labor Code including the Texas Payday Act, the Texas Anti-Retaliation Act, Chapter 21 of the Texas Labor Code, and the Texas Whistleblower Act; claims in connection with workers’ compensation, retaliation or “whistleblower” statutes; and/or contract, tort, defamation, slander, wrongful termination or any other state or federal regulatory, statutory or common law. Further, I expressly represent that no promise or agreement which is not expressed in this Waiver and Release Agreement has been made to me in executing this Waiver and Release Agreement, and that I am relying on my own judgment in executing this Waiver and Release Agreement, and that I am not relying on any statement or representation of the Company or its Affiliates or any of their agents. I agree that this Waiver and Release Agreement is valid, fair, adequate and reasonable, is with my full knowledge and consent, was not procured through fraud, duress or mistake and has not had the effect of misleading, misinforming or failing to inform me. I acknowledge and agree that the Company will withhold the minimum amount of any taxes required by federal or state law from the Separation Benefits otherwise payable to me.
This Waiver and Release Agreement does not apply to any claims for unemployment compensation or any other claims or rights which, by law, cannot be waived, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding.  Further, nothing in this Agreement limits or prevents me from receiving an award for information provided to the SEC or other Governmental Agency (each as defined in Appendix I hereto). Notwithstanding anything to the contrary in this Waiver and Release Agreement, I do not release, and expressly retain (a) all rights to indemnity, contribution, and a defense, and directors and officers and other liability coverage that I may have under any statute, the bylaws of the Company or by other agreement; (b) the right to receive the Separation Benefits; and (c) the right to any unpaid reasonable business expenses and any accrued benefits payable under any Company welfare plan or tax-qualified plan or other Benefit Plans.
I acknowledge that the Company’s provision of the Separation Benefits is not an admission by any one or more of the Released Parties that they engaged in any wrongful or unlawful act or that they violated any federal or state law or regulation. I acknowledge that neither the Company nor its Affiliates have promised me continued employment or represented to me that I will be rehired in the future. I acknowledge that my employer and I contemplate an unequivocal, complete and final dissolution of my employment relationship. I acknowledge that this Waiver and Release Agreement does not create any right on my part to be rehired by the Company or its Affiliates, and I hereby waive any right to future employment by the Company or its Affiliates.
I understand that for a period of seven (7) calendar days following the date that I sign this Waiver and Release Agreement, I may revoke my acceptance of this Waiver and Release Agreement, provided that my written statement of revocation is received on or before that seventh (7th)) day by the Company’s General Counsel, in which case the Waiver and Release Agreement will not become effective. If I timely revoke my acceptance of this Waiver and Release Agreement, the Company shall have no obligation to provide the Separation Benefits to me. I understand that failure to revoke my acceptance of the offer within seven (7) calendar days from the date I sign this Waiver and Release Agreement will result in this Waiver and Release Agreement being permanent and irrevocable.
Should any of the provisions set forth in this Waiver and Release Agreement be determined to be invalid by a court, agency or other tribunal of competent jurisdiction, it is agreed that such determination shall not affect the enforceability of other provisions of this Waiver and Release Agreement. 

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I acknowledge that this Waiver and Release Agreement sets forth the entire understanding and agreement between me and the Company and its Affiliates concerning the subject matter of this Waiver and Release Agreement and supersedes any prior or contemporaneous oral and/or written agreements or representations, if any, between me and the Company or its Affiliates.
I acknowledge that I have read this Waiver and Release Agreement, have had an opportunity to ask questions and have it explained to me and that I understand that this Waiver and Release Agreement will have the effect of knowingly and voluntarily waiving any action I might pursue, including but not limited to breach of contract, personal injury, retaliation, discrimination on the basis of race, age, sex, national origin, or disability or other protected characteristic, and any other claims arising prior to the date this Waiver and Release Agreement is signed by me. By execution of this document, I do not waive or release or otherwise relinquish any legal rights I may have which are attributable to or arise out of acts, omissions, or events of the Company or its Affiliates which occur after the date of the execution of this Waiver and Release Agreement.
IN WITNESS WHEREOF, the undersigned have executed this Agreement, to be effective as of March 20, 2018.
	
		
	 
	C&J ENERGY SERVICES, INC.

	 
	 

	 
	  /s/ Don Gawick

	 
	Name:  Don Gawick

	 
	Title:  President & Chief Executive Officer

	 
	 

	 
	March 20, 2018

	 
	 

	 
	 

	 
	MARK CASHIOLA

	 
	 

	 
	  /s/ Mark Cashiola

	 
	 

	 
	March 20, 2018

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Appendix I
Sections 7.1(a) and 7.1(b) of the Employment Agreement contain restrictive covenants prohibiting Mark Cashiola (“you”) from engaging in certain customer solicitation and competitive activity during the Prohibited Period (as defined in the Employment Agreement), which is a period of one (1) year following your termination of employment.  
Additionally, each of the following agreements between you and the Company (collectively, the “Equity Agreements”) entered between you and the Company contain additional restrictive covenants prohibiting you from engaging in certain activities, including on a post-termination of employment basis:
		
	•
	Restricted Share Agreement dated February 5, 2017

		
	•
	Stock Option Agreement dated February 5, 2017

		
	•
	Restricted Share Agreement dated December 13, 2017

		
	•
	Stock Option Agreement dated December 13, 2017

		
	•
	Performance Share Agreement dated December 13, 2017

In entering into the Waiver and Release Agreement, the Company agrees to provide to you a conditional waiver of the non-competition and customer non-solicitation covenants set forth in Sections 7.1(a) and (b) of the Employment Agreement and in the Equity Agreements.  This waiver is conditioned upon and subject to (x) your timely signing and return of, and subsequent non-revocation in the time provided to do so of, the Waiver and Release Agreement, (y) your adherence the confidentiality, non-disparagement, employee non-solicitation and other restrictive covenants contained in the Employment Agreement and the Equity Agreements (collectively, the “Continuing Covenants”).
You expressly acknowledge and agree that the Continuing Covenants are valid, enforceable, and reasonable in all respects.  You also agree that, if you breach or violate any of the Continuing Covenants then, in addition to any other rights and remedies available to the Company, the Company will be entitled, at its option, to revoke and terminate this conditional waiver, and enforce the restrictive covenants set forth in the Employment Agreement and the Equity Agreements to the fullest extent allowed (including, but not limited to, through temporary and permanent injunctive relief without the necessity of proving actual damage or posting any bond whatsoever) by law and equity, and you will be liable for all of the Company’s costs of enforcement, including, but not limited to, reasonable legal fees.
You understand, acknowledge and agree that a breach by you of the Continuing Covenants would cause immediate and irreparable harm to the Company for which any monetary remedy would be inadequate and that the Company, in addition to any other relief available to it under the Employment Agreement and the Equity Agreements, will be entitled at its discretion to seek temporary and permanent injunctive relief without the necessity of proving actual damage or posting any bond whatsoever.  In the event that the provisions of the Waiver and Release Agreement, the Employment Agreement and the Equity Agreements should ever be deemed to exceed the limitation provided by applicable law, then you and the Company agree that such provisions will be reformed to set forth the maximum limitations permitted.
 You understand, acknowledge and agree that nothing herein or in the Employment Agreement or Equity Agreements shall prohibit or restrict you from lawfully (i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by the SEC or any governmental or regulatory agency, entity, or official(s) (collectively, “Governmental Authorities”) regarding a possible violation of any law; (ii) responding to any inquiry or legal process directed to you individually from any such Governmental Authorities; (iii) testifying, participating or otherwise assisting in an action or proceeding by any such Governmental Authorities 

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relating to a possible violation of law, including providing documents or other confidential information to such Governmental Authorities; (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law; or (v) receiving an award for information provided to the SEC.  Additionally, nothing herein nor in the Employment Agreement and Equity Agreements shall be construed or applied to require you to obtain prior authorization from the Company before engaging in any of the foregoing conduct, or to notify the Company of having engaged in any such conduct.  For the avoidance of doubt, no agreement (including the Waiver and Release Agreement (including this Appendix I), the Employment Agreement or Equity Agreement or any other Company policy, plan or code) will be interpreted or applied to prevent any of the above-described disclosures.

         /s/ Don Gawick                    
Signed by Don Gawick

March 20, 2018

Acknowledged and Agreed on this

20th day of March, 2018.

         /s/ Mark Cashiola                    
Signed by Mark Cashiola

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