Document:

Standby Purchase Agreement

 Exhibit 10.1 
 STANDBY PURCHASE AGREEMENT 
 This STANDBY PURCHASE AGREEMENT (this
“Agreement”), dated as of February 11, 2008, is by and among Security Bank Corporation, a Georgia corporation (the “Company”), and each of the persons listed on the signature page hereto under
Standby Purchasers (each a “Standby Purchaser” and collectively, the “Standby Purchasers”). 
 WITNESSETH: 
 WHEREAS, the Company proposes pursuant to the Rights Offering Registration Statement (as defined herein), to
commence an offering to holders of its common stock (the “Common Stock”) of record as of the close of business on February 11, 2008 (the “Record Date”), of non-transferable rights (the
“Rights”) to subscribe for and purchase additional shares of Common Stock (the “New Shares”) at a subscription price of $6.58 per share for an aggregate offering amount of up to $35 million (the
“Subscription Price” and, such offering, the “Rights Offering”); and 
 WHEREAS, pursuant to
the Rights Offering, the Company will distribute to each of its shareholders of record, at no charge, one Right for each share of Common Stock held by them as of the Record Date, and each Right will entitle the holder to purchase, for each share of
Common Stock owned as of the Record Date, New Shares at the Subscription Price (the “Basic Subscription Privilege”); and 
 WHEREAS, each holder of Rights who exercises in full its Basic Subscription Privilege will be entitled to subscribe for additional shares of Common Stock up to 100% of such holder’s Pro Rata Share of the Unsubscribed Shares (as defined
herein), at the Subscription Price, to the extent that other holders of Rights do not exercise all of their respective Basic Subscription Privileges (the “Over-Subscription Privilege”); and 
 WHEREAS, in order to facilitate the Rights Offering, the Company has requested the Standby Purchasers to agree, and each of the Standby Purchasers have
agreed, (a) not to exercise their respective Over-Subscription Privilege and (b) that, to the extent New Shares are not purchased by the Company’s shareholders pursuant to the exercise of Rights, the Standby Purchasers shall be deemed
to have exercised such Rights immediately prior to the expiration of the Rights Offering and shall purchase the Unsubscribed New Shares from the Company at the Subscription Price pursuant to the exercise of such Rights; and 
 NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and other good and valuable consideration, the parties hereto,
intending to be legally bound hereby, agree as follows: 
 Section 1. Certain Other Definitions. The following terms used
herein shall have the meanings set forth below: 
 “Affiliate” shall mean an affiliate (as defined in Rule 12b-2
under the Exchange Act) of such Standby Purchaser; provided that such Standby Purchaser or any 

 
of its affiliates exercises investment authority, including, without limitation, with respect to voting and dispositive rights with respect to such
affiliate. 
 “Agreement” shall have the meaning set forth in the preamble hereof. 
 “Basic Subscription Privilege” shall have the meaning set forth in the recitals hereof. 
 “Board” shall mean the Board of Directors of the Company. 
 “Business Day” shall mean any day that is not a Saturday, a Sunday or a day on which banks are generally closed in the State of
Georgia. 
 “Closing” shall mean the closing of the purchases described in Section 2 hereof, which shall be held
at 10:00 a.m. on the Closing Date at the offices of Alston & Bird LLP, located at 1201 West Peachtree Street, Atlanta, Georgia 30309, or such other time and place as may be agreed to by the parties hereto. 
 “Closing Date” shall mean the date that is three (3) Business Days after the Rights Offering Expiration Date, or such other
date as may be agreed to by the parties hereto. 
 “Commission” shall mean the United States Securities and Exchange
Commission, or any successor agency thereto. 
 “Common Stock” shall have the meaning set forth in the recitals
hereof. 
 “Company” shall have the meaning set forth in the preamble hereof. 
 “Company Indemnified Persons” shall have the meaning set forth in Section 9(b) hereof. 
 “Company SEC Documents” shall have the meaning set forth in Section 3(g) hereof. 
 “Cure Period” shall have the meaning set forth in Section 8(a) hereof. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the
Commission thereunder. 
 “Expenses” shall have the meaning set forth in Section 6(b) hereof. 
 “Indemnified Persons” shall have the meaning set forth in Section 9(b) hereof. 
 “Market Adverse Effect” shall have the meaning set forth in Section 7(a)(iii) hereof. 
 “Material Adverse Effect” shall mean a material adverse effect on the financial condition, or on the earnings, financial
position, operations, assets, results of operations or business of the Company and its subsidiaries taken as a whole; provided 

  

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that the meaning shall exclude any changes from general economic, industry, market or competitive conditions or changes in laws, rules or regulations
generally affecting Persons in the Company’s industry. 
 “New Shares” shall have the meaning set forth in the
recitals hereof. 
 “Non-Terminating Standby Purchaser” shall have the meaning set forth in Section 8(c) hereof.

 “Over-Subscription Privilege” shall have the meaning set forth in the recitals hereof. 
 “Person” shall mean an individual, corporation, partnership, association, joint stock company, limited liability company, joint
venture, trust, governmental entity, unincorporated organization or other legal entity. 
 “Pro Rata Share” shall
mean, with respect to each shareholder of the Company as of the Record Date, such shareholder’s ownership percentage of all issued and outstanding Common Stock as of the Record Date. 
 “Prospectus” shall mean a prospectus, as defined in Section 2(10) of the Securities Act, which meets the requirements of
Section 10 of the Securities Act and is current with respect to the Securities covered thereby. 
 “Record Date”
shall have the meaning set forth in the recitals hereof. 
 “Rights” shall have the meaning set forth in the recitals
hereof. 
 “Rights Offering” shall have the meaning set forth in the recitals hereof. 
 “Rights Offering Expiration Date” shall mean March 10, 2008, provided that the Company shall have the option to extend the
Rights Offering for any reason, for a period not to exceed 15 Business Days. 
 “Rights Offering Prospectus” shall
mean the final Prospectus, including any prospectus supplement relating to the Rights and the underlying shares of Common Stock that is filed with the Commission and deemed by virtue of Rule 430B of the Securities Act to be part of such
registration statement, each as amended, for use in connection with the issuance of the Rights, together with the documents incorporated by reference therein pursuant to Item 12 of Form S-3. 
 “Rights Offering Registration Statement” shall mean the Company’s shelf Registration Statement on Form S-3 (Commission File
No.333-148698) filed with the Commission on January 16, 2008, together with all exhibits thereto and any prospectus supplement relating to the Rights and the underlying shares of Common Stock that is filed with the Commission and deemed by
virtue of Rule 430B of the Securities Act to be part of such registration statement, each as amended, pursuant to which the Rights and underlying shares of Common Stock have been registered pursuant to the Securities Act. 
  

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 “Securities” shall mean those of the New Shares and Unsubscribed Shares that are
purchased by the Standby Purchasers pursuant to Section 2 hereof. 
 “Securities Act” shall mean the Securities
Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder. 
 “Standby Indemnified
Persons” shall have the meaning set forth in Section 9(a) hereof. 
 “Standby Purchasers” shall
have the meaning set forth in the preamble hereof. 
 “Subscription Agent” shall have the meaning set forth in
Section 6(a)(iv) hereof. 
 “Subscription Price” shall have the meaning set forth in the recitals hereof.

 “Terminating Standby Purchaser” shall have the meaning set forth in Section 8(c) hereof. 
 “Termination Notice” shall mean a notice from the Company indicating that the Board, in the exercise of its good faith judgment,
has determined to terminate or suspend indefinitely the Rights Offering contemplated hereby. 
 “Unsubscribed Shares”
shall have the meaning set forth in Section 2(b) hereof. 
 Section 2. Standby Purchase Commitment. 
 (a) Each of the Standby Purchasers hereby agrees to purchase from the Company, and the Company hereby agrees to sell to each of the Standby Purchasers, at
the Subscription Price, all of the New Shares that will be available for purchase by each of the Standby Purchasers pursuant to its Basic Subscription Privilege. Each Standby Purchaser agrees not to exercise, and to cause its Affiliates not to
exercise, the Over-Subscription Privilege to which such Standby Purchaser and its Affiliates would otherwise be entitled in the Rights Offering. 
 (b) If and to the extent New Shares are not purchased by the Company’s other shareholders (the “Unsubscribed Shares”) pursuant to the exercise of Rights (including the Basic Subscription Privilege and the
Over-Subscription Privilege) under the Rights Offering, the Standby Purchasers shall be deemed to have exercised such Rights immediately prior to the expiration of the Rights Offering and shall be entitled to and hereby agree to purchase from the
Company, and the Company hereby agrees to sell to the Standby Purchasers, at the Subscription Price, all such remaining New Shares; provided, however, that in no event shall the Standby Purchasers be entitled to purchase Unsubscribed
Shares in excess of the number of Unsubscribed Shares that would result in any of the Standby Purchasers becoming beneficial owners (within the meaning of Section 13(d)(3) of the Exchange Act) of 9.9% of the issued and outstanding 

  

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shares of Common Stock after giving effect to the Standby Purchasers’ purchase of New Shares under the Basic Subscription Privilege and Unsubscribed
Shares; provided further. it is understood and agreed that, if and to the extent that the Standby Purchasers are required to purchase Unsubscribed Shares pursuant to this Section 2, then Jonathan W. Been shall purchase 60.5% of such
Unsubscribed Shares up to a maximum investment of $10,000,000 (which amount shall include his Basic Subscription Privilege), and Benjamin W. Griffith, III shall purchase 39.5% of such Unsubscribed Shares, up to a maximum investment of $8,000,000
(which amount shall include his Basic Subscription Privilege). The obligations of the Standby Purchasers shall be several and not joint. 
 (c) Payment of the Subscription Price for the Securities shall be made to the Company by each Standby Purchaser, on the Closing Date, against delivery of the Securities to each Standby Purchaser, in United States dollars by means of
certified or cashier’s checks, bank drafts, money orders or wire transfers. 
 Section 3. Representations and Warranties of
the Company. The Company represents and warrants to each Standby Purchasers as follows: 
 (a) The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Georgia and has all requisite corporate power and authority to carry on its business as now conducted. 
 (b) This Agreement has been duly and validly authorized, executed and delivered by the Company and constitutes a binding obligation of the Company
enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject, as to
enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). 
 (c) As of the date hereof, the authorized capital of the Company consists of 50,000,000 shares of Common Stock, of which, (A)18,915,078 shares were
issued and outstanding, (B) 277,889 shares are reserved for issuance upon exercise of options and other awards granted under the Company’s stock option and incentive plans. All of the outstanding shares of Common Stock have been duly
authorized, are validly issued, fully paid and nonassessable and were offered, sold and issued in compliance with all applicable federal and state securities laws and without violating any contractual obligation or other preemptive or similar
rights. 
 (d) The Rights Offering Registration Statement has been filed with, and declared effective by, the Commission. On the effective
date, the Rights Offering Registration Statement complied in all material respects with the requirements of the Securities Act and did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading. On the Closing Date, the Rights Offering Registration Statement and the Rights Offering Prospectus will not include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the 

  

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statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the representations
and warranties in this subsection shall not apply to statements in or omissions from the Rights Offering Registration Statement or the Rights Offering Prospectus made in reliance upon and in conformity with the information furnished to the Company
in writing by the Standby Purchasers for use in the Rights Offering Registration Statement or in the Rights Offering Prospectus. 
 (e) All
of the Securities and New Shares will have been duly authorized for issuance prior to the Closing, and, when issued and distributed as set forth in the Rights Offering Prospectus, will be validly issued, fully paid and non-assessable; and none of
the Securities or New Shares will have been issued in violation of the preemptive rights of any security holders of the Company arising as a matter of law or under or pursuant to the Company’s Articles of Incorporation, as amended, the
Company’s bylaws, as amended, or any material agreement or instrument to which the Company is a party or by which it is bound. 
 (f)
The documents incorporated by reference into the Rights Offering Prospectus pursuant to Item 12 of Form S-3 under the Securities Act, when they become effective or at the time they are filed with the Commission, as the case may be, will comply
in all material respects with the applicable provisions of the Exchange Act. 
 (g) Since January 1, 2007, the Company has filed with
the Commission all forms, reports, schedules, statements and other documents required to be filed by it through the date hereof under the Exchange Act or the Securities Act (all such documents, as supplemented and amended since the time of filing,
collectively, the “Company SEC Documents”). The Company SEC Documents, including without limitation all financial statements and schedules included in the Company SEC Documents, at the time filed (and, in the case of
registration statements and proxy statements, on the dates of effectiveness and the dates of mailing, respectively, and in the case of any Company SEC Document amended or superseded by a filing prior to the date of this Agreement, then on the date
of such amending or superseding filing), (i) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and (ii) complied in all material respects with the applicable requirements of the Exchange Act and the Securities Act, as applicable. The audited consolidated financial statements of
Company included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 comply as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the
Commission with respect thereto, were prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved, and present fairly in all material respects, the consolidated
financial position of the Company and its consolidated subsidiaries as at the dates thereof and the consolidated results of their operations and cash flows for the periods then ended. 
 (h) Since September 30, 2007, there have not been any events, changes, occurrences or state of facts that, individually or in the aggregate, have
had or 

  

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would reasonably be expected to have a Material Adverse Effect, except as disclosed in writing by the Company to the other parties hereto. 
 Section 4. Representations and Warranties of the Standby Purchasers. Each Standby Purchaser, severally and not jointly, represents and
warrants to the Company, as to itself only, as follows: 
 (a) Such Standby Purchaser is an individual resident of the State of Georgia. Each
Standby Purchaser is acquiring his Securities for his own account, with the intention of holding the Securities for investment and with no present intention of participating, directly or indirectly, in a distribution of the Securities; and he will
not make any sale, transfer or other disposition of the Securities for a period of one year from the Closing Date. 
 (b) Each Standby
Purchaser is familiar with the business in which the Company is engaged, and based upon his knowledge and experience in financial and business matters, he is familiar with the investments of the type that he is undertaking to purchase; he is fully
aware of the problems and risks involved in making an investment of this type; and he is capable of evaluating the merits and risks of this investment. Each Standby Purchaser acknowledges that, prior to executing this Agreement, he has had the
opportunity to ask questions of and receive answers or obtain additional information from a representative of the Company concerning the financial and other affairs of the Company. 
 (c) This Agreement has been duly and validly authorized, executed and delivered by such Standby Purchaser and constitutes a binding obligation of such
Standby Purchaser enforceable against him in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and
subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). 
 (d) The Standby Purchasers are not “affiliates” (within the meaning of Rule 405 of the Securities Act) of one another, are
not acting in concert and are not members of a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) and have no current intention to act in the future in a manner that would make them members of such a
group. 
 Section 5. Deliveries at Closing. 
 (a) At the Closing, the Company shall deliver to each of the Standby Purchasers the following: 
 (i) A certificate or certificates representing the number of shares of Common Stock issued to each of the Standby Purchasers pursuant to Section 2 hereof; and 
  

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 (ii) A certificate of an officer of the Company on its behalf to the effect that the
representations and warranties of the Company contained in this Agreement are true and correct in all material respects on and as of the Closing Date, with the same effect as if made on the Closing Date. 
 (b) At the Closing, each of the Standby Purchasers shall deliver to the Company the following: 
 (i) Payment in an amount equal to the Subscription Price multiplied by the Securities purchased by such Standby Purchaser, as set forth in
Section 2(c) hereof; and 
 (ii) A certificate of such Standby Purchaser to the effect that the representations and
warranties of such Standby Purchaser contained in this Agreement are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date. 
 Section 6. Covenants. 
 (a) Covenants. The Company agrees as follows between the date hereof and the earlier of the Closing Date or the effective date of any termination pursuant to Section 8 hereof: 
 (i) To use commercially reasonable efforts to effectuate the Rights Offering; 
 (ii) As soon as reasonably practicable after the Company is advised or obtains knowledge thereof, to advise the Standby Purchasers with a
confirmation in writing, of (A) the time when the Rights Offering Prospectus or any amendment or supplement thereto has been filed, (B) the issuance by the Commission of any stop order, or of the initiation or threatening of any
proceeding, suspending the effectiveness of the Rights Offering Registration Statement or any amendment thereto or any order preventing or suspending the use of any preliminary prospectus or the Rights Offering Prospectus or any amendment or
supplement thereto, (C) the issuance by any state securities commission of any notice of any proceedings for the suspension of the qualification of the New Shares for offering or sale in any jurisdiction or of the initiation, or the
threatening, of any proceeding for such purpose, (D) the receipt of any comments from the Commission directed toward the Rights Offering Registration Statement or any document incorporated therein by reference, and (E) any request by the
Commission for any amendment to the Rights Offering Registration Statement or any amendment or supplement to the Rights Offering Prospectus or for additional information. The Company will use its commercially reasonable efforts to prevent the
issuance of any such order or the imposition of any such suspension and, if any such order is issued or suspension is imposed, to obtain the withdrawal thereof as promptly as possible; 
 (iii) To operate the Company’s business in the ordinary course of business consistent with past practice; 
  

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 (iv) To notify, or to cause the subscription agent for the Rights Offering (the
“Subscription Agent”) to notify, on each Friday during the exercise period of the Rights, or more frequently if reasonably requested by any Standby Purchaser, the Standby Purchasers of the aggregate number of Rights known by
the Company or the Subscription Agent to have been exercised pursuant to the Rights Offering as of the close of business on the preceding Business Day or the most recent practicable time before such request, as the case may be; 
 (v) Not to issue any shares of capital stock of the Company, or options, warrants, purchase rights, subscription rights, conversion
rights, exchange rights, securities convertible into or exchangeable for capital stock of the Company, or other agreements or rights to purchase or otherwise acquire capital stock of the Company, except for (A) shares of Common Stock issuable
upon exercise of the Company’s presently outstanding stock options, and (B) new stock options and other awards granted to employees of the Company after the date hereof covering not more than 277,889 shares of Common Stock under the
Company’s incentive plans; 
 (vi) Not to authorize any stock split, stock dividend, stock combination or similar
transaction affecting the number of issued and outstanding shares of Common Stock; 
 (vii) Not to declare or pay any
dividends on its Common Stock or repurchase any shares of Common Stock, other than ordinary quarterly dividends, regularly declared and paid in accordance with past practice; and 
 (viii) Not to incur any indebtedness or guarantees thereof, other than borrowings in the ordinary course of business and consistent with
past practice. 
 (b) Expense Reimbursement. The Company agrees to promptly reimburse each Standby Purchaser for all of its reasonable
out-of-pocket costs and expenses and reasonable attorneys’ fees (collectively, “Expenses”) incurred by such Standby Purchaser in connection with this Agreement, its due diligence investigation of the Company and other
activities relating to the transactions contemplated hereunder upon the Company’s receipt of all reasonably requested documentation to support the incurrence by such Standby Purchaser of such Expenses. 
 (c) Certain Acquisitions. Between the date hereof and the Closing Date, none of the Standby Purchasers nor any of their respective Affiliates
shall acquire any shares of Common Stock; provided, however, that the foregoing shall not restrict the acquisition of shares of Common Stock by the Standby Purchasers or any of their respective Affiliates (i) from the Company
pursuant to Section 2 of this Agreement or (ii) from the Standby Purchasers or any of their respective Affiliates. 
 (d)
Information. The Standby Purchasers agree to furnish to the Company all information with respect to such Standby Purchaser that may be necessary or appropriate and will make any information furnished to the Company for the Rights 

  

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Offering Prospectus by such Standby Purchaser not contain any untrue statement of material fact or omit to state a material fact required to be stated in the
Rights Offering Prospectus or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 (e) Public Statements. Neither the Company nor the Standby Purchasers shall issue any public announcement, statement or other disclosure with respect to this Agreement or the transactions contemplated hereby
without the prior consent of the other parties hereto, which consent shall not be unreasonably withheld or delayed, except (i) if such public announcement, statement or other disclosure is required by applicable law or applicable stock market
regulations, in which case the disclosing party shall consult in advance with respect to such disclosure with the other parties to the extent reasonably practicable, or (ii) the filing of any Schedule 13D or Schedule 13G, to which a
copy of this Agreement may be attached as an exhibit thereto. 
 (f) Regulatory Filing. If the Company or any Standby Purchaser
determines a filing is or may be required under applicable law in connection with the transactions contemplated hereunder, the Company and such Standby Purchaser shall use commercially reasonable efforts to promptly prepare and file all necessary
documentation and to effect all applications that are necessary or advisable under applicable law with respect to the transactions contemplated hereunder so that any applicable waiting period shall have expired or been terminated as soon as
practicable after the date hereof. 
 Section 7. Conditions to Closing. 
 (a) The obligations of each of the Standby Purchasers to consummate the transactions contemplated hereunder are subject to the fulfillment, prior to or on
the Closing Date, of the following conditions: 
 (i) The representations and warranties of the Company in Section 3
shall be true and correct in all material respects as of the date hereof and at and as of the Closing Date as if made on such date (except for representations and warranties made as of a specified date, which shall be true and correct in all
material respects as of such specified date); 
 (ii) Subsequent to the execution and delivery of this Agreement and prior to
the Closing Date, there shall not have been any Material Adverse Effect; and 
 (iii) As of the Closing Date, trading in the
Common Stock shall not have been suspended by the Commission or The NASDAQ Global Select Market or trading in securities generally on the New York Stock Exchange or The NASDAQ Global Select Market shall not have been suspended or limited or minimum
prices shall not have been established on either exchange (a “Market Adverse Effect”). 
 (b) The obligations of the
Company to consummate the transactions contemplated hereunder are subject to the fulfillment, prior to or on the Closing Date, of the condition that the representations and warranties of each of the Standby Purchasers in 

  

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Section 4 shall be true and correct in all material respects as of the date hereof and at and as of the Closing Date as if made as of such date (except
for representations and warranties made as of a specified date, which shall be true and correct in all material respects as of such specified date). 
 (c) The obligations of the Company and each of the Standby Purchasers to consummate the transactions contemplated hereunder in connection with the Rights Offering are subject to the fulfillment, prior to or on the
Closing Date, of the following conditions: 
 (i) No judgment, injunction, decree or other legal restraint shall prohibit, or
have the effect of rendering unachievable, the consummation of the Rights Offering or the material transactions contemplated by this Agreement; 
 (ii) No stop order suspending the effectiveness of the Rights Offering Registration Statement or any part thereof shall have been issued and no proceeding for that purpose shall have been initiated or threatened by
the Commission; and any request of the Commission for inclusion of additional information in the Registration Statement or otherwise shall have been complied with; 
 (iii) The New Shares and the Securities shall have been authorized for listing on The NASDAQ Global Select Market; and 
 (iv) Any applicable waiting period shall have expired or been terminated thereunder with respect to such purchase. 
 Section 8. Termination. 
 (a) This Agreement may be terminated at any time prior to the Closing Date, by all of the Standby Purchasers by written notice to the other parties hereto if there is (i) a Material Adverse Effect or (ii) a Market Adverse Effect
that is not cured within twenty-one (21) days after the occurrence thereof (the “Cure Period”), provided that the right to terminate this Agreement after the occurrence of each Material Adverse Effect or a Market
Adverse Effect, which has not been cured within the Cure Period, shall expire seven (7) days after the expiration of such Cure Period. 
 (b) This Agreement may be terminated by the Company on one hand or by the Standby Purchasers on the other hand, by written notice to the other parties hereto: 
 (i) At any time prior to the Closing Date, if there is a material breach of this Agreement by the other party that is not cured within
fifteen (15) days after the non-breaching party has delivered written notice to the breaching party of such breach; or 
 (ii) At any time after April 30, 2008, unless the Closing has occurred prior to such date. 
  

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 (c) If any of the Standby Purchasers (the “Terminating Standby Purchaser”) shall
give written notice of its election to terminate this Agreement pursuant to this Section 8 at any time prior to the Closing Date, this Agreement shall remain in effect with respect to the Company and the other Standby Purchasers (the
“Non-Terminating Standby Purchaser”) to the extent the Non-Terminating Standby Purchasers shall have agreed in writing, within two (2) Business Days of such Terminating Standby Purchaser’s giving of such written
notice, to assume all of the obligations of the Terminating Standby Purchaser hereunder, including, without limitation, the obligation to purchase the Unsubscribed Shares pursuant to Section 2(b) hereof, but subject to the limitations of
Section 2(b) hereof. 
 Section 9. Indemnification and Contribution. 
 (a) In the event the Rights Offering is consummated, the Company shall indemnify and hold harmless the Standby Purchasers and their respective officers,
directors and employees and each other Person, if any, who controls such Standby Purchaser within the meaning of the Securities Act (all such Persons being hereinafter referred to, collectively, as the “Standby Indemnified
Persons”), against any losses, claims, damages or liabilities, to which any of the Standby Indemnified Persons may become subject under the Securities Act or any other statute or at common law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any alleged untrue statement of any material fact contained, on the effective date thereof, in the Rights Offering Registration Statement, the Rights Offering Prospectus or
in any amendment or supplement thereto, or any alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,
and shall reimburse each such Standby Indemnified Person for any reasonable legal or any other expenses reasonably incurred by such Standby Indemnified Person in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Company shall not be liable in any such case to any Standby Indemnified Person to the extent that any such loss, claim, damage or liability arises out of or is based upon any actual or alleged untrue
statement or actual or alleged omission made in the Rights Offering Registration Statement, Rights Offering Prospectus or in any amendment or supplement thereto or in reliance upon and in conformity with written information furnished to the Company
by such Standby Indemnified Person specifically for use therein or so furnished for such purposes by any underwriter. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Standby
Indemnified Person, and shall survive the transfer of such Securities or New Shares by such Standby Indemnified Person. 
 (b) Each Standby
Purchaser by acceptance hereof, severally, and not jointly, agrees to indemnify and hold harmless the Company, its officers, directors and employees and each other Person, if any, who controls the Company within the meaning of the Securities Act
(all such Persons being hereinafter referred to, collectively, as the “Company Indemnified Persons,” and together with the Standby Indemnified Persons, the “Indemnified Persons”) against any
losses, claims, damages or liabilities, joint or several, to which any of the Company Indemnified Persons may become subject (i) as a 

  

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result of any breach by such Standby Purchaser of any of its representations or warranties contained herein or in any certificate delivered hereunder or
(ii) under the Securities Act or any other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of, or are based upon, information provided in writing to the Company by such
Standby Purchaser specifically for use in the Rights Offering Registration Statement or Rights Offering Prospectus or any amendment or supplement thereto. 
 (c) Any Person entitled to indemnification hereunder will (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to
give such notice shall not limit the rights of such Person, except to the extent the indemnifying party is actually prejudiced thereby) and (ii) unless, in such indemnified party’s reasonable judgment, a conflict of interest between such
indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that any
person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (A) the
indemnifying party has agreed to pay such fees or expenses or (B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such Person. If such defense is not assumed by the
indemnifying party as permitted hereunder, the indemnifying party will not be subject to any liability for any settlement made by the indemnified party without its prior written consent (but such consent will not be unreasonably withheld or
delayed). If such defense is assumed by the indemnifying party pursuant to the provisions hereof, such indemnifying party shall not settle or otherwise compromise the applicable claim unless (i) such settlement or compromise contains a full and
unconditional release of the indemnified party or (ii) the indemnified party otherwise consents in advance in writing, which consent shall not be unreasonably withheld or delayed. An indemnifying party who is not entitled to, or elects not to,
assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party,
a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the reasonable fees and disbursements of such
additional counsel or counsels. 
 (d) (i) If the indemnification provided for in this Section 9 is unavailable to an Indemnified Person
hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such Indemnified Person, shall contribute to the amount paid or payable by such Indemnified Person
as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and Indemnified Person in connection with the actions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and Indemnified Persons shall be determined by reference to, among other things, whether any action in

  

 - 13 - 

 
question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or
relates to information supplied by, the indemnifying party or the Indemnified Persons, and their relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result
of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. 
 (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9(d) were determined
by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 Section 10. Survival. The representations and warranties of the Company and each of the Standby Purchasers contained in this Agreement or in any certificate delivered hereunder shall survive the
Closing hereunder. 
 Section 11. Notices. All notices, communications and deliveries required or permitted by this
Agreement shall be made in writing signed by the party making the same, shall specify the Section of this Agreement pursuant to which it is given or being made and shall be deemed given or made (a) on the date delivered if delivered by telecopy
or in person, (b) on the third (3rd) Business Day after it is mailed if mailed by registered or certified mail (return receipt requested) (with postage and other fees prepaid) or (c) on the day after it is delivered, prepaid, to an
overnight express delivery service that confirms to the sender delivery on such day, as follows: 
  

					
	(i)	  	if to Standby Purchaser, at:	  	Jonathan W. Been
		  		  	c/o HomeLife Communities
		  		  	3137 Chestnut Dr.
		  		  	Chamblee, GA 30340
			
	(ii)	  	if to Standby Purchaser, at:	  	Benjamin W. Griffith, III
		  		  	6304 Peake Rd.
		  		  	Macon, GA 31210
			
	(iii)	  	if to the Company, at:	  	Security Bank Corporation
		  		  	4219 Forsyth Road
		  		  	Macon, Georgia 31210
		  		  	Attention: James R. McLemore

  

 - 14 - 

 or to such other representative or at such other address of a party as such party hereto may furnish to
the other parties in writing in accordance with this Section 11. 
 Section 12. Assignment. This Agreement will be
binding upon, and will inure to the benefit of and be enforceable by, the parties hereto and their respective successors and assigns, including any person to whom Securities are transferred in accordance herewith. 
 Section 13. Entire Agreement. This Agreement embodies the entire agreement and understanding between the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises, warranties, or undertakings, other than those set forth or referred to herein, with respect to the standby purchase commitments with respect to the Securities and the New
Shares. This Agreement supersedes all prior agreements and understandings between the parties with respect to the subject matter of this Agreement. 
 Section 14. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Georgia (other than its rules of conflict of laws to the extent the application of the laws
of another jurisdiction would be required thereby). 
 Section 15. Severability. If any provision of this Agreement or the
application thereof to any person or circumstances is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances other than
those as to which it has been held invalid, void or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

 Section 16. Extension or Modification of Rights Offering. The Company may (a) waive irregularities in the manner
of exercise of the Rights, and (b) waive conditions relating to the method (but not the timing) of the exercise of the Rights to the extent that such waiver does not materially adversely affect the interests of the Standby Purchasers.

 Section 17. Miscellaneous. 
 (a) The Company shall not after the date of this Agreement enter into any agreement with respect to its securities which is inconsistent with or violates the rights granted to the Standby Purchasers in this Agreement.

 (b) The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning of this
Agreement. 
  

 - 15 - 

 (c) This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an
original, but all of which, when taken together, shall constitute one and the same instrument. 
 [Remainder of this page intentionally
left blank.] 
  

 - 16 - 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the
date first above written. 
  

			
	COMPANY:
	
	Security Bank Corporation
		
	By:	 	 /s/ H. Averett Walker

	Name:	 	H. Averett Walker
	Title:	 	President and Chief Executive Officer
	
	STANDBY PURCHASERS:
		
	By:	 	 /s/ Jonathan W. Been

	Name:	 	Jonathan W. Been
		
	By:	 	 /s/ Benjamin W. Griffith, III

	Name:	 	Benjamin W. Griffith, IIIShare Lending Agreement

 Exhibit 10.1 
 SHARE LENDING AGREEMENT 
 Dated as of February 11, 2008 
 Among 
 FLOTEK INDUSTRIES, INC.
(“Lender”), 
 and 
 BEAR, STEARNS INTERNATIONAL LIMITED (“Borrower”), through BEAR, 
 STEARNS & CO. INC., as agent for Borrower
(“Borrowing Agent”). 
 This Agreement sets forth the terms and conditions under which Borrower may borrow from Lender
shares of its Common Stock. 
 The parties hereto agree as follows: 
 SECTION 1. Certain Definitions. The following capitalized terms shall have the following meanings: 
 “Business Day” means a day, other than a Saturday or Sunday, on which (i) regular trading occurs in the principal trading market for
the Common Stock and (ii) the Clearing Organization is open. 
 “Cash” means any coin or currency of the United States
as at the time shall be legal tender for payment of public and private debts. 
 “Clearing Organization” means The
Depository Trust Company, or, if agreed to by Borrower and Lender, a Securities Intermediary at which Borrower (or Borrowing Agent) and Lender both maintain accounts. 
 “Closing Price” on any day means, with respect to the Common Stock (i) if the Common Stock is listed or admitted to trading on a U.S. securities exchange registered under the Exchange Act or is
included in the OTC Bulletin Board Service (operated by the Financial Industry Regulatory Authority, Inc.), the last reported sale price, regular way, in the principal trading session on such day on such market on which the Common Stock is then
listed, admitted to trading or included (or, if the day of determination is not a Business Day, the last preceding Business Day) and (ii) if the Common Stock is not so listed or admitted to trading or if the last reported sale price is not
obtainable (even if the Common Stock is listed, admitted to trading or included on such market), the average of the bid prices for the Common Stock obtained from as many dealers in the Common Stock (which may include Borrower or its affiliates), but
not exceeding three, as shall furnish bid prices to the Borrower. 

 “Common Stock” means shares of Common Stock, par value $0.0001 per share, of Lender, or
any other security into which the Common Stock shall be exchanged or converted as the result of any merger, consolidation, other business combination, reorganization, reclassification, recapitalization or other corporate action (including, without
limitation, a reorganization in bankruptcy). 
 “Convertible Notes” means the $100,000,000 aggregate principal amount of
5.25% Convertible Senior Notes due 2028 issued by Lender, or up to $115,000,000 aggregate principal amount to the extent the option to purchase additional Convertible Notes (the “Option”) is exercised in full as set forth in the
underwriting agreement relating to the Convertible Notes. 
 “Convertible Notes Settlement Date” means February 14,
2008. 
 “Cutoff Time” shall mean 10:00 a.m. in the jurisdiction of the Clearing Organization, or such other time on a
Business Day by which a transfer of Loaned Shares must be made by Borrower or Lender to the other, as shall be determined in accordance with market practice. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Guarantor” means Bear Stearns Companies Inc. 
 “Indenture” means the Indenture dated
February 14, 2008, as supplemented by the First Supplemental Indenture dated February 14, 2008, each amongst Lender, the guarantors party thereto and American Stock Transfer & Trust Company, as trustee, pursuant to which the
Convertible Notes are to be issued, as such Indenture is in effect as of the Convertible Notes Settlement Date. 
 “Lender’s
Designated Account” means the securities account of Lender maintained on the books of Borrower, as Securities Intermediary, and designated “Flotek Industries, Inc.” (account number 353-09741-1-6), established simultaneously with
the execution of this Agreement. 
 “Loaned Shares” means shares of Common Stock initially transferred to the Borrower in a
Loan hereunder until such Loan or portion thereof is terminated and a corresponding number of Loaned Shares is transferred to Lender pursuant to this Agreement; provided that in respect of any such share of Common Stock initially transferred
to the Borrower by Lender and subsequently transferred by the Borrower to another transferee, “Loaned Shares” means an equivalent number of shares of identical Common Stock. If, as the result of a stock dividend, stock split or reverse
stock split, the number of outstanding shares of Common Stock is increased or decreased, then the number of Loaned Shares under outstanding Loans shall, effective as of the payment or delivery date of any such event, be proportionately increased or
decreased, as the case may be. If any new or 

  

 2 

 
different security (or two or more securities) shall be exchanged for the outstanding shares of Common Stock as the result of any reorganization, merger,
consolidation, reclassification, recapitalization or other corporate action (including, without limitation, a reorganization in bankruptcy), such new or different security (or such two or more securities collectively) shall, effective upon such
exchange, be deemed to become a Loaned Share in substitution for the former Loaned Share for which such exchange is made, and in the same proportion for which such exchange is made. For purposes of return of Loaned Shares by Borrower or purchase or
sale of securities pursuant to Section 4 or Section 10, such term shall mean securities of the same issuer, class and quantity as the Loaned Shares as adjusted pursuant to the two preceding sentences. 
 “Maximum Number of Shares” means 3,800,000 shares of Common Stock, subject to the following adjustments: 
 (a) If, as the result of a stock dividend, stock split or reverse stock split, the number of outstanding shares of Common Stock is increased or decreased,
the Maximum Number of Shares shall, effective as of the payment or delivery date of any such event, be proportionally increased or decreased, as the case may be. 
 (b) If, pursuant to a merger, consolidation, other business combination, reorganization, reclassification, recapitalization or other corporate action (including, without limitation, a reorganization in bankruptcy),
the Common Stock is exchanged for, or converted into, cash, the Maximum Number of Shares shall be proportionately reduced (to the extent Common Stock is exchanged for, or converted into, cash) on the effective date of such event. 
 (c) If any Convertible Notes are tendered for conversion to Lender in accordance with the terms of such Convertible Notes, the Maximum Number of Shares
shall, effective as of the date Lender delivers cash and/or shares of Common Stock in satisfaction of the related conversion obligation, be reduced by a number of shares of Common Stock (rounded down to the nearest whole share) equal to the product
of the Maximum Number of Shares immediately prior to such conversion and a fraction, the numerator of which is the principal amount of Convertible Notes tendered for conversion and the denominator of which is the principal amount of Convertible
Notes outstanding as of initial issuance (plus any amount of Convertible Notes issued pursuant to the Option). 
 (d) Upon the termination of
any Loan pursuant to Section 4 the Maximum Number of Shares shall be reduced by the number of Loaned Shares surrendered by Borrower to Lender. 
 (e) Notwithstanding the foregoing, if, at any time after the Convertible Notes Settlement Date, the Maximum Number of Shares exceeds the product of (i) the aggregate principal amount of Convertible Notes issued on such date plus, as

  

 3 

 
of any time prior to the expiration of the Option, Convertible Notes issuable upon exercise of the Option, divided by $1,000, and (ii) the Conversion
Rate (as such term is used in the Indenture), then, effective at such time, the Maximum Number of Shares shall be reduced by such excess. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Securities Intermediary” means
a “securities intermediary” as defined by Section 8-102(a)(14) of the UCC. 
 “UCC” means the Uniform
Commercial Code, as in effect in the State of New York, as in effect from time to time. Any reference to particular sections of the UCC shall be deemed to embrace successor renumbered provisions thereof. 
 SECTION 2. Loans of Shares; Transfers of Loaned Shares. 
 (a) Subject to the terms and conditions of this Agreement, Lender hereby agrees to make available for borrowing on the Convertible Notes Settlement Date, a number of shares of Common Stock equal to the Maximum Number
of Shares. 
 (b) Subject to the terms and conditions of this Agreement, Borrower may by written notice to Lender on or prior to the
Convertible Notes Settlement Date (a “Borrowing Notice”), seek to initiate a transaction in which Lender will lend Loaned Shares to Borrower through the issuance by Lender of such Loaned Shares to Borrower upon the terms, and
subject to the conditions, set forth in this Agreement (each such issuance and loan, a “Loan”). Such Loan shall be confirmed by a schedule and receipt listing the Loaned Shares provided by Lender to Borrower (the
“Confirmation”). Such Confirmation shall constitute conclusive evidence with respect to the Loan, including the number of shares of Common Stock that are the subject of the Loan, to which the Confirmation relates, unless a written
objection to the Confirmation specifying the reasons for the objection is received by Lender from Borrower within five Business Days after the delivery of the Confirmation to Borrower; provided that in no event shall the delivery of the
Confirmation or any such objection thereto delay the transfer of Loaned Shares to which a Borrowing Notice relates pursuant to clause (d) below. 
 (c) Notwithstanding anything to the contrary in this Agreement, Borrower shall not be permitted to borrow or have any right to take delivery of, or otherwise receive or be deemed to have received, any shares of Common
Stock hereunder to the extent (but only to the extent) that after such receipt of such Common Stock (i) the “beneficial ownership” (within the meaning of Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder) of Common Stock by Borrower or any affiliate of Borrower subject to aggregation with Borrower under such Section 11 and such rules would exceed 

  

 4 

 
9.9%, as determined by the Borrower in its sole discretion, or (ii) Borrower would be subject to Section 16(b) of the Exchange Act, as determined
by the Borrower in its sole discretion, and any Loan hereunder shall be void and have no effect to the extent (but only to the extent) that such “beneficial ownership” would be in excess of 9.9% or Borrower would become subject to
Section 16(b) of the Exchange Act. If any delivery owed to Borrower hereunder is not made, in whole or in part, as a result of this provision, Lender’s obligation to make such delivery shall not be extinguished and Lender shall make such
delivery as promptly as practicable after, but in no event later than one Business Day after, Borrower gives notice to Lender that such delivery would not result in such “beneficial ownership” being in excess of 9.9% or Borrower becoming
subject to Section 16(b) of the Exchange Act. If, notwithstanding the foregoing, any delivery of Common Stock is erroneously made to Borrower or Borrower otherwise receives or is deemed to have received Common Stock in excess of the foregoing
limitation contrary to the first sentence of this clause (c), such Common Stock shall remain the property of the Lender and the Borrower shall be deemed to hold the same as bailee of Lender and shall have no voting, dispositive control or pecuniary
interest with respect thereto. 
 (d) Lender shall transfer Loaned Shares to Borrower on or before the Cutoff Time on the date specified in
the Borrowing Notice for the commencement of a Loan, which date shall not be earlier than the third Business Day following receipt by Lender of the Borrowing Notice. Delivery of the Loaned Shares to Borrower shall be made in the manner set forth
under Section 11 below. 
 SECTION 3. Loan Fee. Borrower agrees to pay Lender a single loan fee per Loan (a “Loan
Fee”) equal to $0.0001 per Loaned Share. The Loan Fee shall be paid by Borrower on or before the time of transfer of the Loaned Shares pursuant to Section 2(d) on a delivery-versus-payment basis through the facilities of the Clearing
Organization. Lender agrees that the Loan Fee will constitute consideration for the issuance of the Loaned Shares to be issued by Lender. 
 SECTION 4. Loan Terminations. 
 (a) Borrower may terminate all or any portion of a Loan on any Business Day by giving
written notice thereof to Lender and transferring the corresponding number of Loaned Shares to Lender, without any consideration being payable in respect thereof by Lender to Borrower. 
 (b) All outstanding Loans, if any, shall terminate on the date this Agreement terminates pursuant to Section 13 (the “Facility Termination
Date”) and all Loaned Shares under outstanding Loans shall be delivered by Borrower to Lender, without any consideration being payable in respect thereof by Lender to Borrower, no later than the fifth Business Day following the Facility
Termination Date. 
  

 5 

 (c) If on any date, the aggregate number of Loaned Shares under outstanding Loans exceeds the Maximum
Number of Shares, the number of Loaned Shares in excess of the Maximum Number of Shares shall be delivered by Borrower to Lender, without any consideration being payable in respect thereof by Lender to Borrower, no later than the third Business Day
following such date. Upon receipt of a conversion notice from any holder of Convertible Notes, Lender shall notify Borrower within two Business Days of receipt of such conversion notice. 
 (d) If, as a result of complying with this Section 4 as promptly as reasonably practicable (but subject to applicable law, regulation or policy),
(i) the “beneficial ownership” (within the meaning of Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder) of Common Stock by Borrower or any affiliate of Borrower subject to aggregation with
Borrower under such Section 11 and such rules would exceed 9.9%, as determined by Borrower in its sole discretion, or (ii) Borrower would be subject to Section 16(b) of the Exchange Act, as determined by Borrower in its sole
discretion, then Borrower shall be permitted to extend the date on which Loaned Shares are due under this Section 4 for all or a portion of the corresponding delivery obligation but in no event longer than such time to allow Borrower to return
such Loaned Shares, through one transaction or a series of transactions, without causing such “beneficial ownership” to be in excess of 9.9% or Borrower to become subject to Section 16(b) of the Exchange Act, as determined by the
Borrower in its sole discretion. In addition, if Borrower is unable to satisfy its obligations to deliver any Common Stock under this Section 4 due to illiquidity in the market for Common Stock, Borrower shall, upon prior written notice to
Lender, deliver such Common Stock as promptly as reasonably practicable thereafter. 
 SECTION 5. Distributions. 
 (a) If Lender pays a cash dividend or makes a cash distribution in respect of all of its outstanding Common Stock, Borrower shall pay to Lender, within
one Business Day after the payment of such dividend or distribution, an amount in cash equal to the product of (i) the amount per share of such dividend or distribution and (ii) the aggregate number of Loaned Shares under outstanding Loans
as of the record date of such dividend or distribution. 
 (b) If Lender makes a distribution in respect of all of its outstanding Common
Stock in property or securities, including any options, warrants, rights or privileges in respect of securities (other than a distribution of Common Stock as to which the number of Loaned Shares shall be adjusted pursuant to the definition of
“Loaned Shares,” but including any options, warrants, rights or privileges exercisable for, convertible into or exchangeable for Common Stock) (a “Non-Cash Distribution”), then (i) Non-Cash Distributions shall be
treated as additional Loans of such Non-Cash Distribution in an amount equal to the product 

  

 6 

 
of (x) the amount per share of Common Stock of such Non-Cash Distribution and (y) the aggregate number of Loaned Shares under outstanding Loans as
of the record date of such dividend or distribution, and (ii) the definition of “Loaned Share” shall be deemed to be modified to include the per share of Common Stock kind and amount of such Non-Cash Distribution. 
 SECTION 6. Rights in Respect of Loaned Shares. 
 Subject to the terms of this Agreement, and except as otherwise agreed by Borrower and Lender, Borrower, insofar as it is the record owner of Loaned Shares, shall have all of the incidents of ownership in respect of
any such Loaned Shares until such Loaned Shares are required to be delivered to Lender in accordance with the terms of this Agreement, including the right to transfer the Loaned Shares to others. Borrower agrees that it or any of its affiliates that
are the record owner of any Loaned Shares initially transferred to Borrower from Lender as a Loan hereunder will not vote or provide any consent or take any similar action with respect to such Loaned Shares on any matter submitted to a vote of
Lender’s shareholders during the term of the Loan; provided, however that, for the avoidance of doubt, this sentence shall only apply to Loaned Shares transferred to Borrower that have not been offered and sold in a registered public
offering in accordance with the terms of the Underwriting Agreement dated as of the date hereof among Borrower, Lender and Borrowing Agent or returned to Lender in accordance with the terms of this Agreement. 
 SECTION 7. Representations and Warranties. 
 (a) Each of Borrower and Lender represents and warrants to the other that: 
 (i) it has full
power to execute and deliver this Agreement, to enter into the Loans contemplated hereby and to perform its obligations hereunder; 
 (ii) it has taken all necessary action to authorize such execution, delivery and performance; 
 (iii) this Agreement
constitutes its legal, valid and binding obligation enforceable against it in accordance with its terms; 
 (iv) the
execution, delivery and performance of this Agreement does not and will not violate, contravene, or constitute a default under, (A) its certificate of incorporation, bylaws or other governing documents, (B) any laws, rules or regulations
of any governmental authority to which it is subject, (C) any contracts, agreements or instrument to which it is a party or (D) any judgment, injunction, order or decree by which it is bound, 

  

 7 

 
except, in the case of each of clauses (C) and (D), for any such violation, contravention or default that would not reasonably be expected to have a
material adverse effect on the financial condition, business, properties or results of operations of Lender and its subsidiaries, or Borrower and its affiliates, as applicable, taken as a whole; provided that any violation, contravention or
default that would impact the performance of any party’s obligations under this Agreement shall be deemed to have a material adverse effect on the financial condition, business, properties or results of operations of such party and not qualify
for the exception to clauses (C) and (D) described above; and 
 (v) this Agreement is not unsuitable for it in the
light of such party’s financial situation, investment objectives and needs and it is entering into this Agreement in reliance upon such tax, accounting, regulatory, legal and financial advice as it deems necessary and not upon any view
expressed by the other or the Borrowing Agent. 
 (b) Lender represents and warrants to Borrower, as of the date hereof, and as of the date
any Loaned Shares are transferred to Borrower in respect of any Loan hereunder, that the Loaned Shares and all other outstanding shares of Common Stock of the Lender have been duly authorized and, upon the issuance and delivery of the Loaned Shares
to Borrower in accordance with the terms and conditions hereof, and subject to the contemporaneous or prior receipt of the applicable Loan Fee by Lender, the Loaned Shares will be duly authorized, validly issued, fully paid non-assessable shares of
Common Stock; and the stockholders of Lender have no preemptive rights with respect to the Loaned Shares. 
 (c) Lender represents and
warrants to Borrower, as of the date hereof, and as of the date any Loaned Shares are transferred to Borrower in respect of any Loan hereunder, that the outstanding shares of Common Stock are listed on The New York Stock Exchange (the
“NYSE”) and the Loaned Shares have been approved for listing on the NYSE, subject to official notice of issuance. 
 (d)
Lender represents and warrants to Borrower, as of the date hereof, and as of the date any Loaned Shares are transferred to Borrower in respect of any Loan hereunder, that Lender is not “insolvent” (as such term is defined under
Section 101(32) of Title 11 of the United States Code (the “Bankruptcy Code”) and any applicable state law) and Lender would be able to purchase the Maximum Number of Shares in compliance with the laws of Lender’s
jurisdiction of organization. 
 (e) The representations and warranties of Borrower and Lender under this Section 7 shall remain in full
force and effect at all times during the term of this Agreement and shall survive the termination of this Agreement for any reason. 
  

 8 

 SECTION 8. Covenants. 
 (a) Borrower covenants and agrees with Lender that, in so far as it is the record owner of any Loaned Shares transferred to Borrower by Lender as a Loan
hereunder and offered pursuant to a registered public offering on or about the date hereof, such Loaned Shares will be used for the purpose of directly or indirectly facilitating the sale of the Convertible Notes and the hedging of the Convertible
Notes by the holders thereof. 
 (b) Borrower covenants and agrees with Lender that it will not transfer or dispose of any Loaned Shares
transferred to Borrower by Lender as a Loan hereunder of which it is the record owner except pursuant to a registration statement that is effective under the Securities Act; provided that Borrower may transfer any such Loaned Shares to any of
its affiliates without a registration statement so long as such affiliate transferee does not transfer or dispose of such Loaned Shares to any non-affiliated transferee except pursuant to a registration statement that is effective under the
Securities Act. 
 (c) Lender agrees and acknowledges that Borrower has represented to Lender that Borrower is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title 11 of the Bankruptcy Code. The parties hereto further agree and acknowledge (A) that
this Agreement is intended to be a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder is a “settlement payment,” or “margin
payment,” as such terms are defined in Section 741(8) and Section 741(5) of the Bankruptcy Code, and a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each
payment and delivery hereunder is a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Borrower is intended to be entitled to the protections afforded by, among other sections, Sections
362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code. 
 (d) Lender covenants and agrees that, on any day on which
Lender effects any repurchase of shares of Common Stock, Lender shall give Borrower a written notice of the number of its outstanding shares of Common Stock (a “Repurchase Notice”) if, following such repurchase, the number of
outstanding shares of Common Stock shall have decreased by more than 1.0% since the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, the number of outstanding shares of Common Stock as of the date
hereof); provided that, as of any date, for purposes of calculating the number of outstanding shares of Common Stock as of the date of the immediately preceding Repurchase Notice, such number shall be adjusted as set forth in clauses
(a) and (b) of the definition of “Maximum Number of Shares” above, to the same extent the number of shares of Common Stock are adjusted therein, and 

  

 9 

 
only to the extent that any of the events listed in such clauses (a) and (b) have occurred between the date of the immediately preceding Repurchase
Notice and such date. 
 (e) Lender covenants and agrees that, unless otherwise agreed to by Borrower in writing, Lender shall not, nor shall
cause any other person to, directly or indirectly, purchase shares of Common Stock such that, after giving effect to such purchase, the aggregate number of Loaned Shares under outstanding Loans shall be in excess of 25% of the number of outstanding
shares of Common Stock at such time. 
 (f) Lender covenants and agrees that, on the date hereof, Lender shall provide to Borrower a properly
executed Internal Revenue Service Form W-9. 
 SECTION 9. Events of Default. 
 (a) All Loans, and any further obligation to make Loans under this Agreement, may, at the option of Lender by a written notice to Borrower (which option
shall be deemed exercised, even if no notice is given, immediately upon the occurrence of an event specified in either Section 9(a)(iii) or Section 9(a)(iv) below), be terminated (i) immediately upon the occurrence of any of the
events set forth in Section 9(a)(iii) or Section 9(a)(iv) below and (ii) two Business Days following such notice upon the occurrence of any of the other events set forth below, (each, a “Borrower Default”):

 (i) Borrower fails to deliver Loaned Shares to Lender as required by Section 4; 
 (ii) Borrower fails to deliver or pay to Lender when due any cash, securities or other property as required by Section 5; 

(iii) the filing by or on behalf of Borrower of a voluntary petition or an answer seeking reorganization, arrangement, readjustment of
its debts or for any other relief under any bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution, winding-up or liquidation or similar act or law, of any state, federal or other applicable foreign
jurisdictions, now or hereafter existing (“Bankruptcy Law”), or any action by Borrower for, or consent or acquiescence to, the appointment of a receiver trustee, custodian or similar official of Borrower, or of all or a substantial
part of its property; or the making by Borrower of a general assignment for the benefit of creditors; or the admission by Borrower in writing of its inability to pay its debts as they become due; 
  

 10 

 (iv) the filing of any involuntary petition against Borrower in bankruptcy or seeking
reorganization, arrangement, readjustment of its debts or for any other relief under any Bankruptcy Law and an order for relief by a court having jurisdiction in the premises shall have been issued or entered therein; or any other similar relief
shall be granted under any applicable federal or state law or law of any other applicable foreign jurisdictions; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee
or other officer having similar powers over Borrower or over all or a part of its property shall have been entered; or the involuntary appointment of an interim receiver, trustee or other custodian of Borrower or of all or a substantial part of its
property; or the issuance of a warrant of attachment, execution or similar process against any substantial part of the property of Borrower; and continuance of any such event for 15 consecutive calendar days unless dismissed, bonded to the
satisfaction of the court having jurisdiction in the premises or discharged; 
 (v) Borrower fails to provide any indemnity as
required by Section 12; 
 (vi) Borrower notifies Lender of its inability to or intention not to perform Borrower’s
obligations hereunder or otherwise disaffirms, rejects or repudiates any of its obligations hereunder; or 
 (vii) any
representation made by Borrower under this Agreement in connection with any Loan or Loans hereunder shall be incorrect or untrue in any material respect during the term of any Loan hereunder or Borrower fails to comply in any material respect with
any of its covenants under this Agreement. 
 (b) All Loans, and any further obligation to make Loans under this Agreement, may, at the
option of Borrower by a written notice to Lender, be terminated two Business Days following such notice by Borrower upon the occurrence of any of the events set forth below (each, a “Lender Default,” and any Lender Default or
Borrower Default, a “Default”): 
 (i) the filing by or on behalf of Lender of a voluntary petition or an
answer seeking reorganization, arrangement, readjustment of its debts or for any other relief under any Bankruptcy Law, or any action by Lender for, or consent or acquiescence to, the appointment of a receiver, trustee, custodian or similar official
of Lender, or of all or a substantial part of its property; or the making by Lender of a general assignment for the benefit of creditors; or the admission by Lender in writing of its inability to pay its debts as they become due; or 
  

 11 

 (ii) the filing of any involuntary petition against Lender in bankruptcy or seeking
reorganization, arrangement, readjustment of its debts or for any other relief under any Bankruptcy Law and an order for relief by a court having jurisdiction in the premises shall have been issued or entered therein; or any other similar relief
shall be granted under any applicable federal or state law or law of any other applicable foreign jurisdictions; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee
or other officer having similar powers over Lender or over all or a part of its property shall have been entered; or the involuntary appointment of an interim receiver, trustee or other custodian of Lender or of all or a substantial part of its
property; or the issuance of a warrant of attachment, execution or similar process against any substantial part of the property of Lender; and continuance of any such event for 15 consecutive calendar days unless dismissed, bonded to the
satisfaction of the court having jurisdiction in the premises or discharged. 
 SECTION 10. Lender’s Remedies. 

(a) Notwithstanding anything to the contrary herein, if Borrower is required to return Loaned Shares pursuant to Section 4 and, on the date on
which Borrower is required to return Loaned Shares pursuant to Section 4, the purchase of Common Stock by Borrower in an amount equal to all or any portion of the number of Loaned Shares to be delivered to Lender shall 1) be prohibited by any
law, rules or regulation of any governmental authority to which it is or would be subject, 2) violate, or would upon such purchase likely violate, any order or prohibition of any court, tribunal or other governmental authority, 3) require the prior
consent of any court, tribunal or governmental authority prior to any such repurchase or 4) subject Borrower, in the commercially reasonable judgment of Borrower, to any liability or potential liability under any applicable federal securities laws
(other than Section 11 and Section 16(b) of the Exchange Act or illiquidity in the market for Common Stock, in which events Section 4(d) hereof shall govern) (each of (i), (ii), (iii) and (iv), a “Legal Obstacle”),
then, in each case, Borrower shall immediately notify Lender of the Legal Obstacle and the basis therefor, whereupon Borrower’s obligation to deliver Loaned Shares to Lender shall be suspended until such time as no Legal Obstacle with respect
to such obligations shall exist (a “Repayment Suspension”). Following the occurrence of and during the continuation of any Repayment Suspension, Borrower shall use its reasonable best efforts to remove or cure the Legal Obstacle as
soon as practicable; provided that, to the extent such Legal Obstacle is caused, directly or indirectly by Lender (including a bankruptcy or insolvency of Lender), Lender shall promptly reimburse all reasonable costs and expenses (including
legal counsel to Borrower) incurred or, at Borrower’s election, provide reasonably adequate surety or guarantee for any such costs and expenses that may be incurred by Borrower, in each case in removing or curing such Legal Obstacle. 

  

 12 

 
If Borrower is unable to remove or cure the Legal Obstacle within a reasonable period of time under the circumstances, Borrower shall pay to Lender, in lieu
of the delivery of Loaned Shares otherwise required to be delivered, an amount in immediately available funds (the “Replacement Cash”) equal to the product of the Closing Price as of the Business Day immediately preceding the date
Borrower makes such payment and the number of Loaned Shares otherwise required to be delivered. 
 (b) If Borrower shall fail to deliver
Loaned Shares to Lender on the due date when any Loan is terminated under Section 4 or Borrower shall fail to pay the Replacement Cash to Lender in accordance with Section 10(a) above (to the extent Borrower is permitted and elects to pay
Replacement Cash), then, in either case, in addition to any other remedies available to Lender under this Agreement or under applicable law, Lender shall have the right (without further notice to Borrower) to purchase a like number of shares of
Common Stock (and, Non-Cash Distributions, if applicable pursuant to Section 5(b)) (“Replacement Shares”) in the principal market for such securities in a commercially reasonable manner (and Lender shall promptly notify
Borrower of the aggregate purchase price of the Replacement Shares upon the exercise of such right); provided that Lender shall not be permitted to exercise its right to purchase Replacement Shares if Borrower is delivering Loaned Shares to
Lender in accordance with Section 4(d), and provided further that if any Repayment Suspension or failure to deliver shall exist and be continuing, Lender shall not be permitted to exercise its right to purchase Replacement Shares unless
Borrower shall fail to deliver the Loaned Shares or pay the Replacement Cash to Lender in accordance with Section 10(a) above. To the extent Lender shall exercise such right, Borrower’s obligation to return a like amount of Loaned Shares
or to pay the Replacement Cash, as applicable, shall terminate and Borrower shall be liable to Lender for the purchase price of such Replacement Shares (plus all other amounts, if any, due to Lender hereunder). The purchase price of Replacement
Shares purchased under this Section 10 shall include broker’s fees and commissions and all other reasonable costs, fees and expenses related to such purchase and sale. In the event Lender exercises its rights under this Section 10,
Lender may elect in its sole discretion, in lieu of purchasing all or a portion of the Replacement Shares, to be deemed to have made such purchase of Replacement Shares for an amount equal to the Closing Price of the Common Stock on the date Lender
elects to exercise this remedy. The parties hereby agree that repurchase of the Replacement Shares in a manner intended to allow the Lender to avail itself of the safe harbor provided by Rule 10b-18 under the Exchange Act shall be considered
commercially reasonable. 
 SECTION 11. Transfers. 
 (a) All transfers of Loaned Shares to Borrower hereunder shall be made by the crediting by a Clearing Organization of such financial assets to the
Borrower’s “securities account” (within the meaning of Section 8-501 of the UCC) 

  

 13 

 
maintained with such Clearing Organization. All transfers of Loaned Shares to Lender hereunder shall be made by the crediting of such Loaned Shares to
Lender’s Designated Account (whereupon, for the avoidance of doubt, such Loaned Shares credited to Lender’s Designated Account shall become the property of Lender, and Borrower shall have no voting, dispositive control or pecuniary
interest with respect thereto). In every transfer of “financial assets” (within the meaning of Section 8-102(a)(9) of the UCC) hereunder, the transferor shall take all steps necessary (i) to effect a delivery of such financial
assets to the transferee under Section 8-301 of the UCC, or to cause the creation of a security entitlement in favor of the transferee in such financial assets under Section 8-501 of the UCC, (ii) to enable the transferee to obtain
“control” (within the meaning of Section 8-106 of the UCC), and (iii) to provide the transferee with comparable rights under any similar law or regulation of any other jurisdiction that is applicable to such transfer. 

(b) Except as otherwise provided herein, all transfers of cash hereunder to Borrower or Lender shall be by wire transfer in immediately available,
freely transferable funds. 
 (c) A transfer of securities or cash may be effected under this Section 11 on any day except (i) a
day on which the transferee is closed for business at its address set forth in Section 16 or (ii) a day on which a Clearing Organization or wire transfer system is closed, if the facilities of such Clearing Organization or wire transfer
system are required to effect such transfer. Any transfer not effected because of this clause (c) shall be made on the next following day on which such transfer may be made. 
 SECTION 12. Indemnities. 
 (a)
Lender hereby agrees to indemnify and hold harmless Borrower and its affiliates and its former, present and future directors, officers, employees and other agents and representatives from and against any and all liabilities, judgments, claims,
settlements, losses, damages, fees, liens, taxes, penalties, obligations and expenses (including, without limitation, any losses relating to Borrower’s market activities as a consequence of becoming, or of the risk of becoming, subject to
Section 16(b) of the Exchange Act, including, without limitation, any forbearance from market activities or cessation of market activities and any losses in connection therewith) incurred or suffered by any such person or entity directly or
indirectly arising from, by reason of, or in connection with, (i) any breach by Lender of any of its representations or warranties contained in Section 7 or (ii) any breach by Lender of any of its covenants or agreements in this
Agreement. 
 (b) Borrower hereby agrees to indemnify and hold harmless Lender and its affiliates and its former, present and future
directors, officers, employees and 

  

 14 

 
other agents and representatives from and against any and all liabilities, judgments, claims, settlements, losses, damages, fees, liens, taxes, penalties,
obligations and expenses incurred or suffered by any such person or entity directly or indirectly arising from, by reason of, or in connection with (i) any breach by Borrower of any of its representations or warranties contained in
Section 7 or (ii) any breach by Borrower of any of its covenants or agreements in this Agreement. 
 (c) In case any claim or
litigation which might give rise to any obligation of a party under this Section 12 (each an “Indemnifying Party”) shall come to the attention of the party seeking indemnification hereunder (the “Indemnified
Party”), the Indemnified Party shall promptly notify the Indemnifying Party in writing of the existence and amount thereof; provided that the failure of the Indemnified Party to give such notice shall not adversely affect the right
of the Indemnified Party to indemnification under this Agreement, except to the extent the Indemnifying Party is materially prejudiced thereby. The Indemnifying Party shall promptly notify the Indemnified Party in writing if it accepts such claim or
litigation as being within its indemnification obligations under this Section 12. Such response shall be delivered no later than 30 days after the initial notification from the Indemnified Party; provided that, if the Indemnifying Party
reasonably cannot respond to such notice within 30 days, the Indemnifying Party shall respond to the Indemnified Party as soon thereafter as reasonably possible. 
 (d) An Indemnifying Party shall be entitled to participate in and, if (i) in the judgment of the Indemnified Party such claim can properly be resolved by money damages alone and the Indemnifying Party has the
financial resources to pay such damages and (ii) the Indemnifying Party admits that this indemnity fully covers the claim or litigation, the Indemnifying Party shall be entitled to direct the defense of any claim at its expense, but such
defense shall be conducted by legal counsel reasonably satisfactory to the Indemnified Party. An Indemnified Party shall not make any settlement of any claim or litigation under this Section 12 without the written consent of the Indemnifying
Party. 
 SECTION 13. Termination of Agreement. 
 (a) This Agreement shall terminate upon the earliest of (i) the date as of which Lender has notified Borrower in writing of its intention to terminate this Agreement at any time after the entire principal amount
of Convertible Notes ceases to be outstanding and the Lender has settled all payments or deliveries in respect of such Convertible Notes (as such settlement may be extended pursuant to market disruption events or otherwise pursuant to the
Indenture), whether as a result of conversion, redemption, repurchase, cancellation, at maturity or otherwise, (ii) the written agreement of Lender and Borrower to so terminate, (iii) the termination of the underwriting agreement relating
to the Convertible Notes 

  

 15 

 
without issuance of the Convertible Notes or the failure of the initial offering of the Convertible Notes to close, in each case pursuant to the terms of
such underwriting agreement and the Indenture, (iv) the occurrence of a Borrower Default, at the option of the Lender, as set forth in Section 9(a) and (v) the occurrence of a Lender Default, at the option of the Borrower, as set
forth in Section 9(b). 
 (b) Unless otherwise agreed in writing by Borrower and Lender, the provisions of Section 12 shall survive
the termination of this Agreement. 
 SECTION 14. Delegation. 
 Neither party shall delegate its obligations under this Agreement without the prior written consent of the other party, and any attempt to delegate
obligations arising under this Agreement without such consent shall be void; provided that notwithstanding the foregoing and anything to the contrary herein, Borrower may designate any person to deliver Loaned Shares to Lender when due in
accordance with this Agreement and to otherwise perform Borrower’s obligations in respect of this Agreement and any such designee may assume such obligations. Borrower shall only be discharged of its obligations to Lender to the extent of any
such delivery or performance. 
 SECTION 15. Transfer and Assignment. 
 Neither party shall transfer or assign its rights or obligations under this Agreement without the prior written consent of the other party, and any
attempt to transfer or assign any rights or obligations arising under this Agreement without such consent shall be void; provided that notwithstanding the foregoing and anything to the contrary herein, Borrower shall have the right to assign
its rights and obligations under this Agreement to any of its affiliates and be released from all of its obligations under this Agreement so long as the guarantee executed and delivered by Guarantor in accordance with Section 19 (or a
replacement guarantee in substantially the same form) shall remain in full force and effect. 
 SECTION 16. Notices.

 (a) All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when received.

 (b) All such notices and other communications shall be directed to the following address: 
  

	 	(i)	If to Borrower or Borrowing Agent to: 

 Bear,
Stearns & Co. Inc. 
 383 Madison Avenue 
 New York, NY 10179 
  

 16 

	 	(ii)	If to Securities Intermediary to: 

 Bear,
Stearns & Co. Inc. 
 383 Madison Avenue 
 New York, NY 10179 
  

	 	(iii)	If to Lender to: 

 Flotek Industries, Inc. 
 2930 West Sam Houston 
 Parkway North, Suite
300 
 Houston, Texas 77043 
 Attention: Lisa G. Meier 
 Facsimile: (713) 849-9911 
 (c) In the case of any party, at such other address as may be designated by written notice to the other parties. 
 SECTION 17. Governing Law; Submission To Jurisdiction; Severability. 
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York, but excluding any choice of law provisions
that would require the application of the laws of a jurisdiction other than New York. 
 (b) EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY (A) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY SUCH COURT, SOLELY FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING
BROUGHT TO ENFORCE ITS OBLIGATIONS HEREUNDER OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY LOAN HEREUNDER AND (B) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
OR PROCEEDING IN ANY SUCH COURT AND ANY RIGHT OF JURISDICTION ON ACCOUNT OF ITS PLACE OF RESIDENCE OR DOMICILE. 
 (c) EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES ANY RIGHT THAT IT MAY HAVE TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
  

 17 

 (d) To the extent permitted by law, the unenforceability or invalidity of any provision or provisions of
this Agreement shall not render any other provision or provisions herein contained unenforceable or invalid. 
 SECTION 18.
Counterparts. This Agreement may be executed in any number of counterparts, and all such counterparts taken together shall be deemed to constitute one and the same agreement. 
 SECTION 19. Parent Guarantee. 
 On or prior to the date of the transfer of Loaned Shares to the Borrower in a Loan pursuant to this Agreement, Bear Stearns Companies Inc., a Delaware corporation, will execute a parent guarantee in favor of the Lender substantially in the
form of Annex A hereto. 
 SECTION 20. Amendments. 
 No amendment or modification in respect of this Agreement shall be effective unless it shall be in writing and signed by the parties hereto. 

SECTION 21. Capacity of Borrowing Agent. 
 Borrowing Agent is acting in connection with this Agreement solely in its capacity as Borrowing Agent for Lender and Borrower pursuant to instructions from Borrower and Lender. Borrowing Agent shall have no
responsibility or personal liability to Lender or Borrower arising from any failure by Lender or Borrower to pay or perform any obligations hereunder, or to monitor or enforce compliance by Lender or Borrower with any obligation hereunder. Each of
Lender and Borrower agrees to proceed solely against the other to collect or recover any securities or monies owing to it in connection with or as a result of this Agreement. Borrowing Agent shall otherwise have no liability in respect of this
Agreement, except for its gross negligence or willful misconduct in performing its duties as Borrowing Agent. 
  

 18 

 IN WITNESS WHEREOF, the parties hereto have executed this Share Lending Agreement as of the date and year
first above written. 
  

									
	 FLOTEK INDUSTRIES, INC.
 as
Lender
	 		 	 BEAR, STEARNS INTERNATIONAL LIMITED
 as
Borrower

					
	By:	 	 /s/ Jerry D. Dumas, Sr.
	 		 	By:	 	 /s/ Michael O’Donovan

	Name:	 	Jerry D. Dumas, Sr.	 		 	Name:	 	Michael O’Donovan
	Title:	 	Chairman, President and CEO	 		 	Title:	 	Authorized Signatory
				
		 		 		 	 BEAR, STEARNS & CO. INC.
 as Borrowing
Agent

					
		 		 		 	By:	 	 /s/ Robert Aberman

		 		 		 	Name:	 	Robert Aberman
		 		 		 	Title:	 	Senior Managing Director

  

 19 

 Annex A 
 Form of Parent’s Guarantee 
  

 20

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