Document:

EXHIBIT
        4.3

      

      

      WARRANT
        TO PURCHASE COMMON STOCK

      OF
        FLOTEK INDUSTRIES, INC.

      

      VOID
        AFTER 5:30 P.M. NEW YORK CITY TIME ON THE EXPIRATION DATE

      

      

      Warrant
        No. __  
        __________ Shares of Warrant Stock

      

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT
        OF 1933, AS AMENDED, AND HAVE BEEN ISSUED PURSUANT TO A CLAIM OF EXEMPTION
        FROM
        THE REGISTRATION OR QUALIFICATION PROVISIONS OF FEDERAL AND STATE SECURITIES
        LAWS BASED, IN PART, ON AN INVESTMENT REPRESENTATION OF THE PART OF THE
        PURCHASER THEREOF. THESE SECURITIES MAY NOT BE SOLD, PLEDGED, HYPOTHECATED,
        DONATED OR OTHERWISE TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION
        OR
        QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS
        OR
        APPLICABLE EXEMPTIONS THEREFROM.

      

      

      FLOTEK
        INDUSTRIES, INC. (the "Company"), an Alberta corporation, for value received,
        hereby agrees to sell upon the terms and on the conditions hereinafter set
        forth, but no later than 5:30 p.m., New York City Time, on the Expiration
        Date
        (as hereinafter defined) to _________, the registered holder hereof (the
        "Holder"), having an address set forth in the Warrant Register maintained
        by the
        Company, under the terms as hereinafter set forth, _________ fully paid and
        non-assessable shares of the Company's Common Stock, no par value (the "Warrant
        Stock"), at a purchase price per share of Three U.S. Cents (US$0.03) (as
        adjusted as provided herein, the "Warrant Price") pursuant to this Warrant
        (the
        "Warrant"). This Warrant is being issued in accordance with the terms of
        that
        certain Securities Purchase and Exchange Agreement of even date herewith
        (the
        "Securities Purchase Agreement") between the Company and the

      initial
        Holder, inter alia. The number of shares of Warrant Stock to be so issued
        and
        the Warrant Price are subject to adjustment as hereinafter set forth. The
        term
        "Common Stock" shall mean, when used herein, unless the context otherwise
        requires, the stock and other securities and property at the time receivable
        upon the exercise of this Warrant.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      1.
        Exercise of Warrant.

      

      (a)
        The
        Holder may exercise this Warrant according to its terms by surrendering this
        Warrant to the Company at the address set forth in Section 10, the subscription
        form attached hereto having then been duly executed by the Holder, accompanied
        by cash, certified check or bank draft in payment of the purchase price for
        the
        number of shares of the Warrant Stock specified in the subscription form,
        or as
        otherwise provided in this Warrant prior to 5:30 p.m., local New York City
        time,
        on the Expiration Date. The Expiration Date shall be August 31, 2010. The
        purchase price of the shares of Warrant Stock as to which this Warrant shall
        be
        exercised shall be paid to the Company at the time of exercise either in
        cash,
        in Common Stock of the Company already owned by the Holder, by the
        relinquishment of a portion of this Warrant having a total fair market value
        equal to the purchase price, or any combination of the foregoing. For purposes
        of this Section, the fair market value of the portion of this Warrant that
        is
        relinquished shall be the excess of

      

      (x)
        the
        fair market value at the time of exercise of the number of
        shares
        of Warrant Stock subject to the portion of this Warrant
        that is relinquished over

      

      (y)
        the
        aggregate exercise price specified in this Warrant with respect
        to such shares.

      

      The
        fair
        market value of the Warrant Stock shall be equal to the average of the closing
        sales prices of the Company's Common Stock on any stock exchange or market
        on
        which the Company's Common Stock is then traded on the ten trading days
        immediately preceding the date of exercise. If the exchange or market does
        not
        report sales prices, the fair market value of the Warrant Stock shall be
        equal
        to the average of the average of the closing bid and ask prices of the Company's
        Common Stock on the ten trading days immediately preceding the date of exercise.
        If the Company's Common Stock is then traded on more than one exchange or
        market, the fair market value shall be the highest of fair market values
        determined as provided above. If the Company's Common Stock is not then traded
        on any exchange or market, the fair market value shall be determined in good
        faith by the Board of Directors of the Company.

      

      (b)
        This
        Warrant may be exercised in whole or in part so long as any exercise in part
        hereof would not involve the issuance of fractional shares of Warrant Stock.
        If
        exercised in part, the Company shall deliver to the Holder a new Warrant,
        identical in form, in the name of the Holder, evidencing the right to purchase
        the number of shares of Warrant Stock as to which this Warrant has not been
        exercised, which new Warrant shall be signed by the President and the Secretary
        or the Assistant Secretary of the Company. The term Warrant as used herein
        shall
        include any subsequent Warrant issued as provided herein.

      

      (c)
        No
        fractional share or scrip representing fractional shares shall be given upon
        the
        exercise of this Warrant. The Company shall pay cash in lieu of fractions
        with
        respect to the Warrants based upon the Warrant Price at the time of exercise
        of
        this Warrant.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (d)
        In
        the event of any exercise of the rights represented by this Warrant, a
        certificate or certificates for the Warrant Stock so purchased, registered
        in
        the name of the Holder, shall be delivered to the Holder within a reasonable
        time after such rights shall have been so exercised. The person or entity
        in
        whose name any certificate for the Warrant Stock is issued upon exercise
        of the
        rights represented by this Warrant shall for all purposes be deemed to have
        become the holder of record of such shares immediately prior to the close
        of
        business on the date on which the Warrant was surrendered and payment of
        the
        Warrant Price and any applicable taxes was made, irrespective of the date
        of
        delivery of such certificate, except that, if the date of such surrender
        and
        payment is a date when the stock transfer books of the Company are closed,
        such
        person shall be deemed to have become the holder of such shares at the opening
        of business on the next succeeding date on which the stock transfer books
        are
        open.

      

      
        	2.	
                Disposition
                  of Warrant Stock and Warrant.

              

      

      

      (a)
        By
        the acceptance of this Warrant, the Holder hereby acknowledges and covenants
        that this Warrant and any Warrant Stock purchased pursuant thereto are and
        will
        be held for investment and not for distribution; provided that:

      

      (i)
        the
        Warrant and/or Warrant Stock may not be transferred by the
        Holder, (A) unless an exemption is available under the Securities Act
        of
        1933, as amended, and the rules and regulations promulgated by the
        Securities and Exchange Commission thereunder (collectively the "Act"),
        and to a person who, in the reasonable opinion of counsel to the
        Company, is a person to whom the Warrant and/or Warrant Stock may be
        transferred legally without registration and without the delivery of
a
        current
        prospectus under the Act with respect thereto and then only against
        receipt of (x) an agreement of such person to comply with the provisions
        of this Section 2 with respect to any resale or other disposition
        of such securities and (y) an agreement by such person that he
        is
        acquiring such securities for investment and not for distribution except
        in
        compliance with the Act; or (B) except to a person upon delivery
        of a prospectus relating to the Warrant and/or Warrant Stock then
        meeting the requirements of the Act;

      

      (ii)
        the
        Warrant Stock shall be issued upon exercise of this Warrant
        only in compliance with the Act; and

      

      (iii)
        the
        Warrant and the Warrant Stock may be pledged to a lender
        to
        secure the debt of the Holder.

      

      (b)
        If,
        at the time of issuance of the shares issuable upon exercise of this Warrant,
        no
        registration statement is in effect with respect to such shares under applicable
        provisions of the Act, the Company may at its election require that the Holder
        provide the Company with written reconfirmation of the Holder's investment
        intent and that any stock certificate delivered to the Holder of a surrendered
        Warrant shall bear legends reading substantially as follows:

      

      "Transfer
        of the shares represented by this certificate is subject
        to certain restrictions set forth in the Warrant pursuant to which
        these shares were purchased from the Company. Copies of those restrictions
        are on file at the principal offices of the Company, and no
        transfer of such shares or of this certificate, or of any shares or other
        securities (or certificates therefor) issued in exchange for or in respect
        of
        such shares, shall be effective unless and until the terms and conditions
        therein set forth shall
        have been complied with."

      

      "The
        shares represented by this certificate have not been registered
        under the Securities Act of 1933, and may not be sold, transferred,
        pledged or otherwise disposed of in the absence of an effective
        registration statement under the Securities Act of 1933 or an opinion
        of counsel satisfactory to the issuer of this certificate that registration
        is not required under said Act."

      

      In
        addition, so long as the foregoing legend may remain on any stock certificate
        delivered to the Holder, the Company may maintain appropriate "stop transfer"
        orders with respect to such certificates and the shares represented thereby
        on
        its books and records and with those to whom it may delegate registrar and
        transfer functions.

      

      
        	3.	
                Reservation
                  of Shares.

              

      

      

      The
        Company hereby agrees that at all times there shall be reserved for issuance
        upon the exercise of this Warrant such number of shares of its Common Stock
        as
        shall be required for issuance upon exercise of this Warrant and that the
        par
        value of such shares will at all times be less than or equal to the applicable
        Warrant Price. The Company further agrees that all shares which may be issued
        upon the exercise of the rights represented by this Warrant will, upon issuance,
        be validly issued, fully paid and non-assessable, free from all taxes, liens
        and
        charges with respect to the issuance thereof other than taxes, if any, in
        respect of any transfer occurring contemporaneously with such issuance and
        other
        than transfer restrictions imposed by federal and state securities
        laws.

      

      
        	4.	
                Capital
                  Adjustments.

              

      

      

      This
        Warrant is subject to the following further provisions:

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (a)
        Recapitalization, Reclassification and Succession. If any recapitalization
        of
        the Company or reclassification of its Common Stock or any merger or
        consolidation of the Company into or with a corporation or other business
        entity, or the sale or transfer of all or substantially all of the Company's
        assets or of any successor corporation's assets to any other corporation
        or
        business entity (any such corporation or other business entity being included
        within the meaning of the term "successor corporation") shall be effected,
        at
        any time while this Warrant remains outstanding and unexpired, then, as a
        condition of such recapitalization, reclassification, merger, consolidation,
        sale or transfer, lawful and adequate provision shall be made whereby the
        Holder
        of this Warrant thereafter shall have the right to receive upon the exercise
        hereof as provided in Section 1 and in lieu of the shares of Common Stock
        immediately theretofore issuable upon the exercise of this Warrant, such
        shares
        of capital stock, securities or other property as may be issued or payable
        with
        respect to or in exchange for a number of outstanding shares of Common Stock
        equal to the number of shares of Common Stock immediately theretofore issuable
        upon the exercise of this Warrant had such recapitalization, reclassification,
        merger, consolidation, sale or transfer not taken place, and in each such
        case,
        the terms of this Warrant shall be applicable to the shares of stock or other
        securities or property receivable upon the exercise of this Warrant after
        such
        consummation.

      

      (b)
        Subdivision or Combination of Shares. If the Company at any time while this
        Warrant remains outstanding and unexpired shall subdivide or combine its
        Common
        Stock, the number of shares of Warrant Stock purchasable upon exercise of
        this
        Warrant shall be proportionately adjusted.

      

      (c)
        Certain Dividends and Distributions. If the Company at any time while this
        Warrant is outstanding and unexpired shall take a record of the holders of
        its
        Common Stock for the purpose of entitling them to receive a dividend payable
        in,
        or other distribution of, Common Stock, then the number of shares of Warrant
        Stock purchasable upon exercise of this Warrant shall be adjusted to that
        number
        determined by multiplying the number of shares of Warrant Stock so purchasable
        immediately prior to such record date by a fraction (i) the numerator of
        which
        shall be the sum of (A) the total number of outstanding shares of Common
        Stock
        immediately prior to such record date and (B) the total number of shares
        of
        Common Stock issuable pursuant to such dividend or distribution, and (ii)
        the
        denominator of which shall be the total number of shares of Common Stock
        outstanding immediately prior to such record date.

      

      (d)
        Corresponding Warrant Price Adjustment. Whenever the number of shares of
        Warrant
        Stock purchasable upon the exercise of the rights granted to the Holder herein
        is increased or decreased as provided in Section 4 (b) or (c), the Warrant
        Price
        payable for the exercise of such rights shall be adjusted by multiplying
        such
        Warrant Price immediately prior to such adjustment by a fraction, of which
        the
        numerator shall be the number of shares of Warrant Stock purchasable upon
        the
        exercise of such rights immediately prior to such adjustment, and of which
        the
        denominator shall be the number of shares of Warrant Stock purchasable
        immediately thereafter.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (e)
        Certain Other Warrant Price Adjustments. (i) If the Company at any time while
        this Warrant is outstanding and unexpired issues and sells, or is deemed
        to have
        issued and sold (as provided in Section 4(e)(ii) or (iii)), any shares of
        Common
        Stock, for a consideration per share of less than the Warrant Price in effect
        immediately prior to the issuance of such additional Common Stock, then,
        immediately following the issue and sale of such additional Common Stock,
        the
        Warrant Price shall be adjusted by multiplying the Warrant Price in effect
        immediately before the issuance of such additional Common Stock by the number
        determined by dividing:

      

      (A)
        An
        amount equal to (1) the total number of shares of Common Stock
        outstanding immediately following the last previous adjustment of the
        Warrant Price pursuant to this Section 4 (or on the date hereof if there
        shall have been no previous adjustment) multiplied by the Warrant Price
        in
        effect immediately prior to such issuance, plus (2) the consideration,
        if any, received or deemed to have been received by the Company
        upon such issuance and upon the issuance of any Common Stock issued
        subsequent to the last previous adjustment of the Warrant Price pursuant
        to this Section 4 (or subsequent to the date hereof if there shall
        have been no such previous adjustment), by

      

      (B)
        The
        total number of shares of Common Stock outstanding immediately
        after the issuance of such additional Common Stock (or which
        would have been outstanding but for retirement of Common Stock or acquisitions
        of Common Stock by or for the account of the Company during
        the period covered by the computation) multiplied by the Warrant Price
        in
        effect immediately prior to such issuance.

      

      (ii)
        If
        the Company at any time while this Warrant is outstanding
        and unexpired grants any rights, warrants or options (other than
        the
        rights granted herein or in any stock option plan of the Company
        covering officers, directors, consultants or employees of the Company)
        to subscribe for Common Stock or any securities convertible or exchangeable
        into Common Stock (such rights, warrants and options being called
        the "Options" and such securities convertible into Common Stock the
        "Convertible Securities"), then the maximum number of shares of Common
        Stock issuable upon the exercise of such Options or upon the conversion
        or exchange of the Convertible Securities will be deemed to have
        been
        outstanding and to have been issued and sold by the Company, and
        the
        appropriate adjustment to the Warrant Price will be made in accordance
        with Section 4(e)(i). For purposes of this paragraph, the

      consideration
        of the shares of Common Stock issuable upon the exercise of
        such
        Options will be equal to the total amount received or receivable
        by the Company for the granting of the Options plus the minimum
        aggregate amount of additional consideration due the Company upon
        the
        exercise of the Options (plus, in the case of the Options relating
        to Convertible Securities, any additional consideration payable
        upon the issuance or sale and the conversion and exchange thereof).

      

      (iii)
        If
        the Company at any time while this Warrant is outstanding
        and unexpired issues or sells any Convertible Securities, then
        the
        maximum number of shares of Common Stock issuable upon conversion
        or exchange of all such Convertible Securities will be deemed
        to
        be outstanding and to have been issued or sold by the Company,
        and the appropriate adjustment to the Warrant Price will be made
        in
        accordance with Section 4(e)(i). For purposes of this paragraph,
        the consideration for the shares of Common Stock issuable upon
        conversion or exchange of all such Convertible Securities will be equal
        to
        the total amount received or receivable by the Company for the issue
        or
        sale of such Convertible Securities plus the minimum aggregate amount
        of
        additional consideration, if any, payable upon the conversion or
        exchange thereof.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (iv)
        If
        at any time while this Warrant is outstanding and unexpired
        the purchase price per share for any Option, or any additional
        consideration payable to the Company upon the exercise of any
        Option or upon conversion of a Convertible Security, or the rate at which
        any
        Convertible Securities are convertible or exchangeable into Common
        Stock, is reduced, then the consideration for the shares of Common
        Stock issuable upon the exercise or conversion thereof will be recalculated
        giving effect to such reduction, and immediately after any such
        price reduction or rate reduction becomes effective, the appropriate
        adjustment to the Warrant Price will be made in accordance with
        Section 4(e)(i).

      

      Notwithstanding
        the foregoing,

      

      (1)
        no
        further adjustments in the Warrant Price shall be made upon the subsequent
        issue
        of Convertible Securities or shares of Common Stock upon the exercise of
        such
        Options or conversion or exchange of such Convertible Securities;

      

      (2)
        if
        such Options or Convertible Securities by their terms provide, with the passage
        of time or otherwise, for any increase or decrease in the consideration payable
        to the Company, or decrease or increase in the number of shares of Common
        Stock
        issuable, upon the exercise, conversion or exchange thereof, the Warrant
        Price
        computed upon the original issue thereof (or upon the occurrence of a record
        date with respect thereto), and any subsequent adjustments based thereon,
        shall,
        upon any such increase or decrease becoming effective, be recomputed to reflect
        such increase or decrease insofar as it affects such Options or the rights
        of
        conversion or exchange under such Convertible Securities (provided, however,
        that no such adjustment of the Warrant Price shall affect Common Stock
        previously issued upon conversion of the Warrant;

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (3)
        upon
        the expiration of any such Options or any rights of conversion or exchange
        under
        such Convertible Securities which shall not have been exercised, the Warrant
        Price computed upon the original issue thereof (or upon the occurrence of
        a
        record date with respect thereto), and any subsequent adjustments based thereon,
        shall, upon such expiration, be recomputed as if:

      

      (A)
        in
        the case of Convertible Securities or Options for Common Stock the only
        additional shares of Common Stock issued were the shares of Common Stock,
        if
        any, actually issued upon the exercise of such Options or the conversion
        or
        exchange of such Convertible Securities and the consideration received therefor
        was the consideration actually received by the Company for the issue of all
        such
        Options, whether or not exercised, plus the consideration actually received
        by
        the Company upon such exercise, or for the issue of all such Convertible
        Securities which were actually converted or exchanged, plus the additional
        consideration, if any, actually received by the Company upon such conversion
        or
        exchange and

      

      (B)
        in
        the case of Options for Convertible Securities only the Convertible Securities,
        if any, actually issued upon the exercise thereof were issued at the time
        of
        issue of such Options, and the consideration received by the Company for
        the
        additional shares of Common Stock deemed to have been then issued was the
        consideration actually received by the Company for the issue of all such
        Options, whether or not exercised, plus the consideration deemed to have
        been
        received by the Company (determined as described above) upon the issue of
        the
        Convertible Securities with respect to which such Options were actually
        exercised;

      

      (4)
        in
        the case of any Options which expire by their terms not more than 30 days
        after
        the date of issue thereof, no adjustment of the Warrant Price shall be made
        until the expiration or exercise of all such Options, whereupon such adjustment
        shall be made in the same manner provided in clause (3)
        above;

      

      (5)
        no
        adjustments in the Warrant Price shall be made in respect of grants of stock
        pursuant to employee benefit plans of the Company;

      

      (6)
        no
        adjustments in the Warrant Price shall be made in respect of the issuance
        of
        Warrant Stock upon exercise of the Warrant or in respect of the issuance
        of
        Common Stock upon conversion of the Series A Preferred Stock of the Company
        issued on the date hereof;

      

      (7)
        no
        further adjustments in the Warrant Price shall be made under this paragraph
        (e)
        in respect of adjustments required pursuant to paragraphs (a) through (c)
        of
        this Section 4.

      

      (f)
        Certain Shares Excluded. The number of shares of Common Stock outstanding
        at any
        given time for purposes of the adjustments set forth in this Section 4 shall
        exclude any shares then directly or indirectly held in the treasury of the
        Company.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (g)
        Deferral and Cumulation of De Minimis Adjustments. The Company shall not
        be
        required to make any adjustment of the Warrant Price pursuant to this Section
        4
        if the amount of such adjustment would be less than one percent (1%) of the
        Warrant Price in effect immediately before the event that would otherwise
        have
        given rise to such adjustment. In such case, however, any adjustment that
        would
        otherwise have been required to be made shall be made at the time of and
        together with the next subsequent adjustment which, together with any adjustment
        or adjustments so carried forward, shall amount to not less than one percent
        (1%) of the Warrant Price in effect immediately before the event giving rise
        to
        such next subsequent adjustment.

      

      (h)
        Duration of Adjusted Warrant Price. Following each computation or readjustment
        of an adjusted Warrant Price as provided in this Section 4, the new adjusted
        Warrant Price shall remain in effect until a further computation or readjustment
        thereof is required.

      

      
        	5.	
                Notices
                  to Holders.

              

      

      

      
        	
              	(a)	
                Notice
                  of Record Date. In case:

              

      

      

      (i)
        the
        Company shall take a record of the holders of its Common
        Stock (or other stock or securities at the time receivable upon the
        exercisable of this Warrant) for the purpose of entitling them to receive
        any dividend (other than a cash dividend payable out of earned surplus
        of the Company) or other distribution, or any right to subscribe
        for or purchase any shares of stock of any class or any other securities,
        or to receive any other right; or 

      
 

      (ii)
        of
        any capital reorganization of the Company, any reclassification
        of the capital stock of the Company, any consolidation with
        or
        merger of the Company into another corporation, or any conveyance
        of all or substantially all of the assets of the Company to another
        corporation; or

      

      (iii)
        of
        any voluntary dissolution, liquidation or winding-up of
        the
        Company;

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      then,
        and
        in each such case, the Company will mail or cause to be mailed to the Holder
        hereof at the time outstanding a notice specifying, as the case may be, (i)
        the
        date on which a record is to be taken for the purpose of such dividend,
        distribution or right, and stating the amount and character of such dividend,
        distribution or right, or (ii) the date on which such reorganization,
        reclassification, consolidation, merger, conveyance, dissolution, liquidation
        or
        winding-up is to take place, and the time, if any, is to be fixed, as of
        which
        the holders of record of Common Stock (or such stock or securities at the
        time
        receivable upon the exercise of this Warrant) shall be entitled to exchange
        their shares of Common Stock (or such other stock or securities) for securities
        or other property deliverable upon such reorganization, reclassification,
        consolidation, merger, conveyance, dissolution, liquidation or winding-up.
        Such
        notice shall be mailed at least 30 days prior to the record date therein
        specified, or if no record date shall have been specified therein, at least
        30
        days prior to such other specified date.

      

      (b)
        Notice of Adjustments. Whenever any Warrant Price shall be adjusted, pursuant
        to
        Section 4 hereof, the Company shall promptly make a certificate signed by
        its
        Chairman, its CEO, its President or a Vice President and by its Treasurer
        or
        Assistant Treasurer or its Secretary or Assistant Secretary, setting forth
        in
        reasonable detail, the event requiring the adjustment, the amount of the
        adjustment, the method by which such adjustment was calculated and the Warrant
        Price after giving effect to such adjustment, and shall promptly cause copies
        of
        such certificates to be mailed (by first classmail, postage prepaid) to the
        Holder of this Warrant.

      

      
        	6.	
                Loss,
                  Theft, Destruction or Mutilation.

              

      

      

      Upon
        receipt by the Company of evidence satisfactory to it, in the exercise of
        its
        reasonable discretion, of the ownership and the loss, theft, destruction
        or
        mutilation of this Warrant and, in the case of loss, theft or destruction,
        of
        indemnity reasonably satisfactory to the Company and, in the case of mutilation,
        upon surrender and cancellation thereof, the Company will execute and deliver
        in
        lieu thereof, without expense to the Holder, a new Warrant of like tenor
        dated
        the date hereof.

      

      
        
          	7.	
                  Warrant
                    Holder Not a Stockholder.

                

        

      

      

      The
        Holder of this Warrant, as such, shall not be entitled by reason of this
        Warrant
        to any rights whatsoever as a stockholder of the Company.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	8.	
                Transfer;
                  Register.

              

      

       

      Subject
        to the provisions of Section 2 above, this Warrant is transferable in the
        same
        manner and with the same effect as in the case of a negotiable instrument
        payable to a specified person. The Warrants shall be issued in registered
        form
        only and the Company shall keep a register (the "Warrant Register") in which
        provisions shall be made for the registration of the Warrants and the
        registration of transfers thereof. Such Register shall be kept at the principal
        office of the Company and the Company is hereby appointed the "Warrant
        Registrar" for the purpose of registering the Warrants and transfers of the
        Warrants. Subject to compliance with the provisions of Section 2 hereof and
        Article III of the Securities Purchase Agreement by a transferee, upon surrender
        for registration of transfer of any Warrant at the principal office of the
        Company and compliance with the provisions of Section 2 hereof and Section
        3.1
        of the Securities Purchase Agreement, if applicable, the Company shall execute
        and deliver, in the name of the designated transferee, a new Warrant. The
        Company shall treat the individual or entity in whose name each Warrant is
        registered on the Warrant Register as the sole and absolute owner thereof,
        notwithstanding any contrary notice.

      

      
        	9.	
                Registration
                  Rights.

              

      

      

      The
        Holder shall have certain registration rights with respect to the Warrant
        Shares, all as set forth in a Registration Rights Agreement of even date
        herewith among the Company, the Holder and certain other Holders.

      

      
        	10.	
                Notices.

              

      

      

      Any
        notice required or contemplated by this Warrant shall be deemed to have been
        duly given if transmitted by registered or certified mail, return receipt
        requested, to the Company at 7030 Empire Central Drive, Houston, Texas 77040,
        Attention: President, or to the Holder at the name and address set forth
        in the
        Warrant Register maintained by the Company.

      

      
        	11.	
                Choice
                  of Law.

              

      

      

      This
        Warrant shall be governed by the local laws of the Texas, except to the extent
        that the law of the Company's jurisdiction of organization is required to
        be
        applied.

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      IN
        WITNESS WHEREOF, the undersigned has duly signed this Warrant as of this
        31st
        day of August, 2000.

      

      
        	 	 	 
	 	FLOTEK
                INDUSTRIES, INC.
	 
 	 
 	 
 
	Date: 	By:  	/s/ Jerry
                D. Dumas, Sr.
	 	Jerry D. Dumas, Sr., President and
                CEOEXHIBIT
        4.4

      

      ACQUIROR
        SHAREHOLDERS AGREEMENT

      

      THIS
        ACQUIROR SHAREHOLDERS AGREEMENT ("Agreement") is made effective as of the
        15th
        day of August, 2001 by and among Flotek Industries, Inc., an Alberta, Canada
        corporation ("Acquiror"), Chemical and Equipment Specialties, Inc. ("Target"),
        an Oklahoma corporation, and each of the undersigned shareholders (the
        "Shareholders") of Acquiror, with reference to the following
        circumstances:

      

      RECITALS

      

      A. Target
        and Acquiror have entered into an Agreement and Plan of Reorganization of
        even
        date herewith (the "Reorganization Agreement"), providing for the merger
        of a
        subsidiary of Acquiror with and into Target; and

      

      B. As
        a
        condition to Acquiror’s execution of the Reorganization Agreement, the
        Shareholders have agreed to make certain representations, warranties and
        covenants set forth herein. 

      

      AGREEMENT

      

      NOW,
        THEREFORE, in consideration of the covenants and agreements contained herein,
        and other good and valuable consideration, the parties agree as
        follows:

      

      1. REPRESENTATIONS
        AND WARRANTIES OF EACH SHAREHOLDERS.
        As a
        material inducement to Target to enter into the Reorganization Agreement
        and to
        consummate the transactions contemplated thereby, each of the Shareholders,
        severally and not jointly, represents and warrants to Acquiror and Target,
        as of
        the date of this Agreement and as of the Merger Closing under the Reorganization
        Agreement, as follows:

      

      1.1 Authority;
        Power; Binding Effect on Shareholder.
        Such
        Shareholder has the requisite right, power, authority and capacity to execute
        and deliver this Agreement and to make the representations and warranties
        of
        such Shareholder herein and to perform such Shareholder's obligations hereunder.
        The execution, delivery and performance of this Agreement by such Shareholder
        has been authorized by all necessary action on the part of such Shareholder
        and
        no other proceedings (corporate or other) on the part of such Shareholder
        are
        necessary to authorize the execution, delivery and performance of this
        Agreement. This Agreement has been duly executed and delivered by such
        Shareholder and, assuming the due execution and delivery of this Agreement
        by
        Acquiror, constitutes the legal, valid and binding obligation of such
        Shareholder enforceable against such Shareholder in accordance with its terms
        and conditions.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      1.2 Ownership
        by Shareholder of Target Securities.
        Such
        Shareholder is the lawful record and beneficial owner of the number of shares
        of
        common stock of Acquiror ("Acquiror Common Stock"), Series A Convertible
        Preferred Stock of Acquiror ("Acquiror Preferred Stock"), and warrants to
        acquire Acquiror Common Stock expiring April 30, 2010 ("Acquiror Warrants")
        set
        forth opposite such Shareholder’s name on Exhibit
        "A"
        attached
        hereto, free and clear of any lien, claim or encumbrance (except as set forth
        in
        Exhibit A). Except for the Acquiror Warrants and as indicated on Exhibit
        "A"
        attached
        hereto, such Shareholder holds no options, warrants, calls, conversion or
        other
        rights, or any agreements or commitments of any nature which obligate Acquiror
        or any Subsidiary of Acquiror to issue any additional shares of capital stock
        or
        any securities convertible into or exchangeable for any such shares of capital
        stock.

      

      1.3 Securities
        Laws Matters.

      

      (a) Such
        Shareholder is either an accredited investor and/or has such knowledge and
        experience in financial and business matters that such Shareholder is capable
        of
        evaluating the merits and risks of an investment in the Acquiror Preferred
        Stock, the Acquiror Common Stock to be acquired upon conversion of the Acquiror
        Preferred Stock or exercise of the Acquiror Warrants and has had the opportunity
        to obtain advice from professional advisors, including attorneys and
        accountants, with respect to all aspects of the transactions contemplated
        herein
        and the ownership of Acquiror Common Stock and Acquiror Warrants, including
        the
        impact of all relevant securities and tax laws thereon;

      

      (b) Such
        Shareholder has been furnished by Acquiror with a copy of Acquiror’s Annual
        Report on Form 10-K for the year ended February 28, 2001 and the Form 10-Q
        for
        the three months ended May 31, 2001 as filed with the Securities and Exchange
        Commission (the "Commission"); 

      

      (c) Such
        Shareholder (i) has received copies of the financial statements of Target
        for
        the six months ended June 30, 2001; and (ii) has had access to such other
        information concerning Target and Acquiror as such Shareholder has reasonably
        requested;

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (d) Such
        Shareholder acknowledges that the Acquiror Common Stock issuable upon conversion
        of the Acquiror Preferred Stock and exercise of the Acquiror Warrants have
        not
        been registered under the Securities Act of 1993, as amended (the "Securities
        Act"), or the securities laws of any state, that the Acquiror Common Stock
        is
        being acquired for investment purposes and not with a view to distribution
        or
        resale, nor with the intention of selling, transferring or otherwise disposing
        of all or any part of such Acquiror Common Stock for any particular price,
        or at
        any particular time, or upon the happening of any particular event or
        circumstance, except selling, transferring, or disposing of said Acquiror
        Common
        Stock in full compliance with all applicable provisions of the Securities
        Act,
        the rules and regulations promulgated thereunder, and applicable state
        securities laws; and that such shares must be held indefinitely unless they
        are
        subsequently registered under the Securities Act and applicable state securities
        laws or an exemption from such registration is available;

      

      (e) Such
        Shareholder has had the opportunity to ask questions of, and receive answers
        from, Target and Acquiror concerning the terms and conditions of the
        Reorganization Agreement transactions contemplated thereby and to obtain
        any
        additional information reasonably necessary to verify the accuracy of the
        information referred to in subsections (b) and (c) above. Each question which
        such Shareholder has asked has been answered, each document concerning Acquiror
        and Target which such Shareholder has reasonably requested has been furnished
        and there is no further information concerning Acquiror or Target that such
        Shareholder desires to obtain; and

      

      (f) Such
        Shareholder understands that the Acquiror Common Stock issuable to such
        Shareholder shall bear a legend in substantially the following
        form:

      

      THE
        SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
        OF
        1933 (THE "SECURITIES ACT"). SUCH SHARES MAY NOT BE OFFERED, SOLD OR OTHERWISE
        TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
        SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR SUCH OFFER, SALE,
        TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION OR IS OTHERWISE
        IN
        COMPLIANCE WITH THE SECURITIES ACT AND SUCH LAWS. 

      

      2. COVENANTS
        AND AGREEMENTS OF THE SHAREHOLDERS.
        Each of
        the Shareholders, severally and not jointly, covenants and agrees as
        follows:

      

      2.1 No
        Inconsistent Action; Voting Agreement.
        Each
        Shareholder shall not take any action that is inconsistent with such
        Shareholder's obligations under this Agreement, and such Shareholder has
        voted,
        agrees to vote or shall have voted all Acquiror Preferred Stock owned by
        such
        Shareholder in favor of the approval of (i) the Reorganization Agreement
        and the
        transactions contemplated thereby and (ii) the change in the jurisdiction
        of the
        domicile of Acquiror from Alberta to Delaware (the "Change in Domicile")
        and,
        accordingly, shall not seek nor be entitled to any dissenter's or appraisal
        rights with respect to their Preferred Stock in connection with the
        Reorganization Agreement and the transaction contemplated thereby or the
        Change
        in Domicile. Each of the Shareholders who is a director or officer of Acquiror
        (or who is controlled by such persons) also agrees to vote all Acquiror Common
        Stock owned by him(or by persons controlled by him) including any shares
        acquired on exercise of Acquiror Warrants or options or on conversion of
        Acquiror Preferred Stock in favor of the approval of (i) the Reorganization
        Agreement and the transactions contemplated thereby and (ii) the change in
        the
        jurisdiction of the domicile of Acquiror from Alberta to Delaware (the "Change
        in Domicile") and, accordingly, shall not seek nor be entitled to any
        dissenter's or appraisal rights with respect to their shares of Common Stock
        in
        connection with the Reorganization Agreement and the transactions contemplated
        thereby or the Change in Domicile. 

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      2.2 Confidentiality.
        Each
        Shareholder agrees to keep confidential all information obtained by such
        Shareholder with respect to Target and Acquiror in connection with this
        Agreement and the Reorganization Agreement (including the existence and terms
        of
        the transactions contemplated by the Reorganization Agreement) and shall
        use
        such information solely in connection with the transactions contemplated
        hereby.
        Notwithstanding the foregoing, such Shareholder shall not be required to
        keep
        confidential information that (a) is known or available through other lawful
        sources not bound by a confidentiality agreement with the disclosing party,
        (b)
        is or becomes publicly known through no fault of the receiving party or its
        agents, (c) is required to be disclosed pursuant to an order or request of
        a
        judicial authority or governmental entity (provided the disclosing party
        is
        given reasonable prior notice) or (d) is developed by the receiving party
        independently of the disclosure by the disclosing party.

      

      2.3 Acquisition
        Proposals.
        Unless
        and until the Reorganization Agreement shall be terminated in accordance
        with
        its terms, each Shareholder shall not, nor shall such Shareholder authorize
        or
        permit any representative or agent to, directly or indirectly, solicit, initiate
        or encourage submission of (including by way of furnishing information) any
        proposal or offer from any person which constitutes, or may reasonable be
        expected to lead to, any Acquisition Proposal (as defined herein), entertain
        any
        discussions or negotiations with respect to an Acquisition Proposal, or enter
        into any agreement or commitment providing for or relating to an Acquisition
        Proposal. With respect to Acquisition Proposals received by a Shareholder
        after
        the date of this Agreement, such Shareholder shall promptly notify Target
        and
        Acquiror upon receipt of any Acquisition Proposal or any request for information
        relating to Acquiror in connection with an Acquisition Proposal or for access
        to
        the directors, personnel, assets, books or records of Acquiror. For purposes
        of
        this Agreement, "Acquisition Proposal" means any offer or proposal for, or
        any
        indication of interest in, a merger, consolidation or other business combination
        involving Acquiror, the acquisition of a majority of the equity securities
        of
        Acquiror, or the acquisition of all or a substantial portion of the assets
        of
        Acquiror, excluding the transactions contemplated by the Reorganization
        Agreement.

      

      2.4 Conversion
        of Acquiror Preferred Stock and Exercise of Acquiror Warrants.
        Such
        Shareholder acknowledges that the Reorganization Agreement (i) permits him
        to
        convert his Acquiror Preferred Stock into Acquiror Common Stock at a "Conversion
        Price" as defined in the terms of the Target Preferred Stock of US $0.027
        rather
        than US $0.03 as provided in the Acquiror Preferred Stock if converted before
        the Merger Closing Date; and (ii) requires that the Shareholders convert
        at
        least 90% of the Acquiror Preferred Stock outstanding on or before the Merger
        Closing and exercise or amend at least 90% of the Acquiror Warrants outstanding
        on or before the Warrant Exercise Date with at least 85% of the Acquiror
        Warrants being exercised for cash and that if such conditions are not satisfied,
        the transactions contemplated by the Reorganization Agreement may not occur.
        By
        so indicating on the signature page, such Shareholder hereby elects to convert
        his Acquiror Preferred Stock on the Merger Closing Date and exercise his
        Acquiror Warrants for cash on the Warrant Exercise Date. Such Shareholder
        acknowledges and agrees that the issuance of the Acquiror Common Stock upon
        conversion of the Acquiror Preferred Stock will not result in any adjustment
        to
        the exercise price of the Acquiror Warrants.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      2.5  Indemnification
        by Shareholders.
        Each
        Shareholder individually agrees to indemnify and hold Acquiror and Target
        harmless from and against any and all liabilities, damages, losses, claims,
        demands, costs or expenses (including interest, penalties, reasonable attorneys'
        and accountants' fees and expenses) which Acquiror or Target shall suffer
        or
        incur resulting from, relating to or arising out of (i) any inaccuracy in
        any
        representation or warranty by such Shareholder under this Agreement or (ii)
        the
        failure of such Shareholder to perform such Shareholder’s obligations under this
        Agreement.

      

      3. RECEIPT
        OF MERGER CONSIDERATION.

      

      3.1 Receipt
        of Acquiror Common Stock.
        Each of
        the Shareholders hereby appoints Jerry Dumas and Gary Pittman, or either
        of
        them, as such Shareholder's agent to receive on such Shareholder's behalf
        from
        Acquiror at the Warrant Exercise Date and the Merger Closing Date the Acquiror
        Common Stock to which such Shareholder is entitled pursuant to Section 2.4.
        The
        Acquiror Common Stock shall be disbursed by such agent after the occurrence
        of
        the Warrant Exercise Date and the Merger Closing Date to the
        Shareholders.

      

      3.2 Acceptance
        of Appointment.
        Jerry
        Dumas and Gary Pittman hereby accept the appointments described
        above.

      

      4. TERMINATION.
        This
        Agreement shall automatically terminate upon any termination of the
        Reorganization Agreement.

      

      5. MISCELLANEOUS.
         

      

      5.1 Notices.
        All
        notices and other communications required or permitted hereunder must be
        in
        writing and shall be deemed to have been duly given when (a) delivered by
        hand
        (with written confirmation of receipt), (b) when received by the addressee,
        if
        mailed by first class mail, postage prepaid, registered or certified with
        return
        receipt requested, or (c) when received by the addressee, if sent by a
        nationally recognized overnight delivery service, in each case to the
        appropriate party at the addresses set forth below:

      If
        to
        Acquiror:

      

      Flotek
        Industries

      7030
        Empire Central Drive

      Houston,
        TX 77040

      Facsimile:
        713-466-8386

      Attn:
        Jerry Dumas

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      If
        to
        Target:

      

      Chemical
        & Equipment Specialties, Inc.

      P.
        O. Box
        1006

      Duncan,
        OK 73533

      Facsimile:
        580-255-2673

      Attn:
        Glenn Penny

      

      If
        to any
        Shareholder, at the address of such Shareholder 

      set
        forth
        in Exhibit
        "A"
        attached
        hereto.

      

      or
        to
        such other address or addresses as any party may from time to time designate
        by
        notice to the other parties.

      

      5.2 Successors
        and Assigns.
        Except
        as otherwise expressly provided in this Agreement, the provisions of this
        Agreement shall inure to the benefit of, and be binding upon, the successors,
        assigns, heirs, transferees, executors and administrators of the parties
        hereto.
        Nothing in this Agreement, express or implied, is intended to confer upon
        any
        party other than the parties hereto or their respective successors and assigns
        any rights, remedies, obligations, or liabilities under or by reason of this
        Agreement, except as expressly provided in this Agreement.

      

      5.3 Entire
        Agreement.
        This
        Agreement constitutes the full and entire understanding and agreement of
        the
        parties with respect to the matters contemplated hereby and supersedes any
        other
        agreement, whether written or oral, that may have been made or entered into
        by
        any party relating to the matters contemplated hereby.

      

      5.4 Amendment.
        This
        Agreement, or any provision hereof, may be amended only in writing signed
        by
        Acquiror and by any Shareholder that is bound or affected by such
        Amendment.

      

      5.5 Waiver.
        Neither
        the failure nor any delay by any party in exercising any right, power, or
        privilege under this Agreement will operate as a waiver of such right, power,
        or
        privilege, and no single or partial exercise of any such right, power, or
        privilege will preclude any other or further exercise of such right, power,
        or
        privilege or the exercise of any other right, power, or privilege. To the
        maximum extent permitted by applicable law, (a) no claim or right
        arising
        out of this Agreement can be discharged by one party, in whole or in part,
        by a
        waiver or renunciation of the claim or right unless in writing signed by
        the
        other parties; (b) no waiver that may be given by a party will be
        applicable except in the specific instance for which it is given; and
        (c) no notice to or demand on one party will be deemed to be a waiver
        of
        any obligation of such party or of the right of the party giving such notice
        or
        demand to take further action without notice or demand as provided in this
        Agreement.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      5.6 Governing
        Law.
        This
        Agreement, including without limitation, the interpretation, construction
        and
        validity hereof, shall be governed by the laws of the State of Oklahoma without
        regard to its conflict of laws principles.

      

      5.7 Severability.
        The
        parties agree that if one or more provisions contained in this Agreement
        shall
        be deemed or held to be invalid, illegal or unenforceable in any respect
        under
        any applicable law, this Agreement shall be construed with the invalid, illegal
        or unenforceable provision deleted, and the validity, legality and
        enforceability of the remaining provisions contained herein shall not be
        affected or impaired thereby.

      

      5.8 Execution
        in Counterparts.
        This
        Agreement may be executed in one or more counterparts, each of which will
        be
        deemed an original copy of this Agreement and all of which together will
        be
        deemed to constitute one and the same document effective as to Acquiror and
        each
        Shareholder that has signed any such counterpart.

      

      5.9 Section
        Headings.
        The
        headings of sections in this Agreement are provided for convenience only
        and
        will not affect its construction or interpretation. 

      

      5.10 Dispute
        Resolution.
        The
        parties intend that any disputes between Acquiror and the Shareholders
        concerning this Agreement shall be resolved by arbitration as provided in
        the
        Reorganization Agreement, and the provisions of Section 10.12 of the
        Reorganization Agreement shall be controlling with regard to any such dispute
        in
        connection with this Agreement. However, to the extent arbitration shall
        be held
        by a court of competent jurisdiction to be unenforceable, the parties agree
        as
        set forth in Section 6.11 below. 

      

      5.11 Jurisdiction
        and Venue.
        Subject
        to Section 6.10 above, each of the parties hereby consents to the bringing
        of
        any suit, action or proceeding with respect to this Agreement in (i) the
        Oklahoma state courts of competent jurisdiction in Oklahoma County, Oklahoma
        or
        in the United States District Court in which the City of Oklahoma City is
        located or (ii) the Texas state courts of competent jurisdiction in Harris
        County, Texas or in the United States District Court in which the City of
        Houston is located. ALL PARTIES HEREBY IRREVOCABLY WAIVE ANY OBJECTIONS WHICH
        THEY MAY NOW OR HEREAFTER HAVE TO THE PERSONAL JURISDICTION OR VENUE OF ANY
        SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT BROUGHT
        IN ANY SUCH COURT AND HEREBY FURTHER IRREVOCABLY WAIVE ANY CLAIM THAT SUCH
        SUIT,
        ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
        INCONVENIENT FORUM. 

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

      5.12 Legal
        Fees and Expenses.
        If a
        court of competent jurisdiction or arbitrator appointed pursuant to the
        provisions of this Agreement makes a finding or judgment that a party has
        breached this Agreement, then such breaching party agrees to pay the costs
        and
        expenses (including reasonable attorneys fees and expenses) incurred by any
        other party in successfully (i) enforcing any of the terms of the Agreement
        against such breaching party or (ii) proving that such breaching party breached
        any of the terms of this Agreement.

      

      5.13 Rights
        Under Reorganization Agreement.
        Target
        acknowledges and agrees that the Shareholders are third-party beneficiaries
        of
        the representations, warranties, covenants and agreements of Target under
        the
        Reorganization Agreement and any and all rights of Acquiror under the
        Reorganization Agreement.

      

      5.14 Defined
        Terms.
        Capitalized terms not otherwise defined herein have the meanings set forth
        in
        the Reorganization Agreement.

      

      [END
        OF
        PAGE - SIGNATURES ON NEXT PAGE]

      

      

      

      980324.v10

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        first
        above written.

       

       

      
 

      
        	"Agents" 	FLOTEK INDUSTRIES, INC. 	 
	 	 	 
	 	By: /s/ Jerry D.
                Dumas______________ 	 
	Jerry Dumas  	Jerry D. Dumas, Sr., President and
                CEO	 
	 	 	 
	 	CHEMICAL & EQUIPMENT SPECIALTIES,
                INC. 	 
	 	 	 
	Gary Pittman  	By: /s/ Glenn
                Penny_________________ 	 
	
              	Glenn Penny, President 	 
	 	 	 
	 	"SHAREHOLDERS" 	 

      

           

      
        
          

        

       

       
        
          	
                  Convert
                    Acquiror
                    Preferred

                	
                   Exercise
Acquiror
                    
Warrants
                    for Cash

                	TOSI, L.P.	 	 
	 	 	 	 	 
	
                   Yes

                	
                   ____Yes

                	By: Pitman
                  Property Corp., a Texas corporation, General
                  Partner 	 	 
	
                   No

                	
                   ____No

                	 	 	 
	 	 	 	 	  
	 	 	 	 	 
	 	 	 	 	 

        
     

      
        	 	By:
                /s/ J.W. Beavers	 
	 	
                J.
                  W. Beavers, Jr., President

              	 
	 	 	 
	 	Dated: _______,
                2001 	 

      

      

      
        
          

        

      

      
        	Convert Acquiror
                Preferred 	CHISHOLM ENERGY PARTNERS,
                L.L.C. 	 
	 	 	 
	 	By: /s/ John W.
                Chisholm_______ 	 
	
                Yes

              	John W. Chisholm, Managing
                Director 	 
	 	 	 
	
                No

              	Dated:________,
                2001 	 
	
                 

              	 	 

      

       

       

      Signature
        Page to

      Acquiror
        Shareholders Agreement

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    William R. Ziegler______ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	William R. Ziegler	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
     

          
            

          

        

      

       

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	HINCKLEY BROOK,
                    INC.	 	 
	 	 	By: /s/ Jerry Dumas_________	 	 
	
                     Yes

                  	
                     ____Yes

                  	Jerry Dumas	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          

               

          
            
              

            

          

        

      

       

      
        
          
            
              
                	
                        Convert
                          Acquiror
                          Preferred

                      	
                         Exercise
Acquiror
                          
Warrants
                          for Cash

                      	SAXTON RIVER
                        CORPORATION	 	 
	 	 	By: /s/ Jerry Dumas_________	 	 
	
                         Yes

                      	
                         ____Yes

                      	Jerry Dumas, President	 	 
	 	 	 	 	 
	
                         No

                      	
                         ____No

                      	Dated:________,
                        2001 	 	 

              
     

              
                

              

            

          

        

      

       

      
        
          
            
              	
                      Convert
                        Acquiror
                        Preferred

                    	
                       Exercise
Acquiror
                        
Warrants
                        for Cash

                    	 	 	 
	 	 	/s/
                      Charles E. Murphy, Jr.__ 	 	 
	
                       Yes

                    	
                       ____Yes

                    	Charles E. Murphy, Jr.	 	 
	 	 	 	 	 
	
                       No

                    	
                       ____No

                    	Dated:________,
                      2001 	 	 

            

              

            Signature
              Page to

          

        

      

      
        Acquiror
          Shareholders Agreement

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

      

      
        
          	
                  Convert
                    Acquiror
                    Preferred

                	
                   Exercise
Acquiror
                    
Warrants
                    for Cash

                	SPRINGFIELD TRADING
                  S.A.	 	 
	 	 	By: /s/ SPRINGFIELD TRADING
                  S.A.	 	 
	
                   Yes

                	
                   ____Yes

                	Name: 	 	 
	 	 	Title: 	 	 
	 	 	 	 	 
	
                   No

                	
                   ____No

                	Dated:________,
                  2001 	 	 

        
     

        
          

        

         

      

      
        
          	
                  Convert
                    Acquiror
                    Preferred

                	
                   Exercise
Acquiror
                    
Warrants
                    for Cash

                	 	 	 
	 	 	/s/
                  Jeffrey R. Freeman______ 	 	 
	
                   Yes

                	
                   ____Yes

                	Jeffrey R. Freeman	 	 
	 	 	 	 	 
	
                   No

                	
                   ____No

                	Dated:________,
                  2001 	 	 

        
     

      
        
          

        

      

       

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Arvind Sanger___________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Arvind Sanger	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
     

        
          
            

          

        

         

        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Nancy Naples O'Neill__ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Nancy Naples O'Neill	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          

          Signature
            Page to

          
            Acquiror
              Shareholders Agreement

             

          

        

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	
                     

                  	
                     

                  	
                    /s/
                      Richard H.
                      Jukes______________

                  	 	 
	
                     Yes

                  	
                     ____Yes

                  	Richard H. Jukes	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

      

      
        
          

        

      

       

      
        
          	
                  Convert
                    Acquiror
                    Preferred

                	
                   Exercise
Acquiror
                    
Warrants
                    for Cash

                	 	 	 
	 	 	/s/ Tom
                  Bandy_________________ 	 	 
	
                   Yes

                	
                   ____Yes

                	Tom Bandy	 	 
	 	 	 	 	 
	
                   No

                	
                   ____No

                	Dated:________,
                  2001 	 	 

        
  

      
        

      

      
        
          	
                  Convert
                    Acquiror
                    Preferred

                	
                   Exercise
Acquiror
                    
Warrants
                    for Cash

                	NOW VENTURES, LLC	 	 
	 	 	By: /s/ NOW VENTURES,
                  LLC__	 	 
	
                   Yes

                	
                   ____Yes

                	Thomas H. O'Neill, Jr., Managing
                  Member	 	 
	 	 	 	 	 
	
                   No

                	
                   ____No

                	Dated:________,
                  2001 	 	 

        
  

      
        
          

        

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Steve A. Webster________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Steve A. Webster	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          Signature
            Page to

          
            Acquiror
              Shareholders Agreement

          

        

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

      

       

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Thomas H. O'Neill, Jr._ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Thomas H. O'Neill, Jr.	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          

        

      

       

      
        
          

        

      

       

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	POC PARTNERS LIMITED
                    PARTNERSHIP	 	 
	 	 	By: /s/
                    POC PARTNERS LIMITED PARTNERSHIP	 	 
	
                     Yes

                  	
                     ____Yes

                  	General Partner	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          
            
              

            

          

        

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Oliver W. Robertson___ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Oliver W. Robertson	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          

        

      

      

      
        
          	
                  Convert
                    Acquiror
                    Preferred

                	
                   Exercise
Acquiror
                    
Warrants
                    for Cash

                	 	 	 
	 	 	/s/
                  Paul Atanasio___________ 	 	 
	
                   Yes

                	
                   ____Yes

                	Paul Atanasio	 	 
	 	 	 	 	 
	
                   No

                	
                   ____No

                	Dated:________,
                  2001 	 	 

        

          

        
          Signature
            Page to

          
            Acquiror
              Shareholders Agreement

          

        

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

      

       

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    John Dalrymple__________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	John Dalrymple	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          
            

          

           

        

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Tom Brandy______________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Tom Bandy	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          

        

      

      

      
        
          	
                  Convert
                    Acquiror
                    Preferred

                	
                   Exercise
Acquiror
                    
Warrants
                    for Cash

                	 	 	 
	 	 	/s/
                  Tom Dugan_______________ 	 	 
	
                   Yes

                	
                   ____Yes

                	Tom Dugan	 	 
	 	 	 	 	 
	
                   No

                	
                   ____No

                	Dated:________,
                  2001 	 	 

        

         

        
          
            

          

           

        

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Austin Jones__________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Austin Jones	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

      

      
        
          Signature
            Page to

          
            Acquiror
              Shareholders Agreement

             

          

        

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

         

      

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Jerry Dumas_____________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Jerry Dumas	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          

        

      

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    David Irwin____________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	David Irwin	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          

        

         

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Rick Johnson____________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Rick Johnson	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

        
          

        

      

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Harvey Mueller__________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Harvey Mueller	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

      

      
        
          Signature
            Page to

          
            Acquiror
              Shareholders Agreement

             

          

        

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

      

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    Glenn Penny_____________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	Glenn Penny	 	 
	 	 	 	 	 
	 	 	/s/
                    Cheryl Penny____________ 	 	 
	
                     No

                  	
                     ____No

                  	Cheryl Penny	 	 
	 	 	 	 	 
	 	 	Dated:________,
                    2001 	 	 

          
  

        
          

        

      

      

      
        
          
            	
                    Convert
                      Acquiror
                      Preferred

                  	
                     Exercise
Acquiror
                      
Warrants
                      for Cash

                  	 	 	 
	 	 	/s/
                    John Chisholm___________ 	 	 
	
                     Yes

                  	
                     ____Yes

                  	John Chisholm	 	 
	 	 	 	 	 
	
                     No

                  	
                     ____No

                  	Dated:________,
                    2001 	 	 

          
  

      

      
        Signature
          Page to

        
          Acquiror
            Shareholders Agreement

        

      

      
        
          
            

          

          
          

        

        
          16

          
            

          

        

        
          
          

          
          

        

      

      
        
          
            
              
                 

              

            

          

        

      EXHIBIT
        A

      
        
          	 

                  Name
                    and Address

                	 	 	
                  
                    
                      Acquiror

                      Common

                    
Stock Owned 

                	 	 	
                  Acquiror
Warrants 

                	 	 	
                  Original
                    Face of Acquiror Preferred Stock
                    (000's) 

                	 	 	
                  
                    
                      
                        
                          
                            Accrued
Dividends
                              on
Acquiror
Preferred
Stock

                          

                        

                      

                    
(thru
                    9/30/01) 

                	 	 	
                  
                    
                      
                        
                          Stock
                            Issuable
upon
                            Conversion

                        
(((Preferred*1000
+Accrued Divs)/

                    

                    $0.027) 

                  

                	 	 	 

                  Acquiror
                    Common
Total
Acquiror Common
after Conversion
and
                    Exercise 

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TOSI,
                    L.P.

                	 	 	
                  0

                	 	 	
                  27,993,071

                	 	
                  $

                	
                  839.792

                	 	
                  $

                	
                  138,213.45

                	 	 	
                  36,222,424

                	 	 	
                  64,215,495

                	 
	
                  3900
                    Thanksgiving Tower

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  1601
                    Elm Street

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Dallas,
                    Texas 75201

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Attn:
                    Mr. David S. Hunt

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Fax:
                    214-880-7101

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TIN:
                    75-2725122

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Chisholm
                    Energy

                  Partners,
                    l.l.c.

                	 	 	
                  0

                	 	 	
                  0

                	 	
                  $

                	
                  590.001

                	 	
                  $

                	
                  97,102.70

                	 	 	
                  25,448,285

                	 	 	
                  25,448,285

                	 
	
                  14918
                    Bramblewood

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Houston,
                    Texas 77079

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Attention:
                    John Chisholm

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Fax:
                    281-497-7974

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TIN:
                    

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  William
                    R. Ziegler

                	 	 	 	 	 	
                  3,525,034

                	 	
                  $

                	
                  105.751

                	 	
                  $

                	
                  17,404.56

                	 	 	
                  4,561,317

                	 	 	
                  8,086,351

                	 
	
                  Satterlee
                    Stephens Burke & Burke LLP

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  230
                    Park Avenue, 11th Floor

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  New
                    York, NY 10169

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Fax:
                    212-682-9112

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TIN:
                    

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Hinckley
                    Brook, Inc.

                	 	 	
                  2,521,298

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                  2,521,298

                	 
	
                  7030
                    Empire Central Drive

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Houston,
                    Texas 77040

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Attention:
                    Jerry Dumas

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Fax:
                    713-896-4511

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TIN:
                    

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Saxton
                    River Corporation

                	 	 	
                  4,103,422

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                  4,103,422

                	 
	
                  7030
                    Empire Central Drive

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Houston,
                    Texas 77040

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Attention:
                    Jerry Dumas

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Fax:
                    713-896-4511

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TIN:
                    

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Thomas
                    H. O'Neill, jr.

                	 	 	 	 	 	
                  860,200

                	 	
                  $

                	
                  25.806

                	 	
                  $

                	
                  4,247.17

                	 	 	
                  1,113,080

                	 	 	
                  1,973,280

                	 
	
                  c/o
                    William R. Ziegler

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Satterlee
                    Stephens Burke & Burke LLP

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  230
                    Park Avenue, 11th Floor

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  New
                    York, NY 10169

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Fax:
                    212-682-9112

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TIN:
                    

                	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

        

         

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

         

        
          
            	
                    POC
                      PARTNERS LIMITED

                    PARTNERSHIP

                  	 	
                    1,715,267

                  	 	
                    $

                  	
                    51.458

                  	 	
                    $

                  	
                    8,468.99

                  	 	 	
                    2,219,518

                  	 	 	
                    3,934,785

                  	 
	
                    c/o
                      William R. Ziegler

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Satterlee
                      Stephens Burke & Burke LLP

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    230
                      Park Avenue, 11th Floor

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    New
                      York, NY 10169

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Fax:
                      212-682-9112

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    TIN:
                      

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Oliver
                      W. Robertson

                  	 	 	
                    3,485,659

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                    3,485,659

                  	 
	
                    7030
                      Empire Central Dr.

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Houston,
                      Texas 77040

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Fax:
                      713-466-8386

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    TIN:

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Paul
                      Atanasio

                  	 	 	 	 	 	
                    854,167

                  	 	
                    $

                  	
                    25.625

                  	 	
                    $

                  	
                    4,217.38

                  	 	 	
                    1,105,273

                  	 	 	
                    1,959,440

                  	 
	
                    c/o
                      William R. Ziegler

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Satterlee
                      Stephens Burke & Burke LLP

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    230
                      Park Avenue, 11th Floor

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    New
                      York, NY 10169

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Fax:
                      212-682-9112

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    TIN:
                      

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    John
                      Dalrymple

                  	 	 	 	 	 	
                    675,200

                  	 	
                    $

                  	
                    20.256

                  	 	
                    $

                  	
                    3,333.74

                  	 	 	
                    873,694

                  	 	 	
                    1,548,894

                  	 
	
                    c/o
                      William R. Ziegler

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Satterlee
                      Stephens Burke & Burke LLP

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    230
                      Park Avenue, 11th Floor

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    New
                      York, NY 10169

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Fax:
                      212-682-9112

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    TIN:
                      

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Charles
                      E. Murphy, jr.

                  	 	 	 	 	 	
                    3,391,668

                  	 	
                    $

                  	
                    101.750

                  	 	
                    $

                  	
                    16,746.07

                  	 	 	
                    4,388,743

                  	 	 	
                    7,780,411

                  	 
	
                    c/o
                      William R. Ziegler

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Satterlee
                      Stephens Burke & Burke LLP

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    230
                      Park Avenue, 11th Floor

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    New
                      York, NY 10169

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Fax:
                      212-682-9112

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    TIN:
                      

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Springfield
                      Trading S. A.

                  	 	 	 	 	 	
                    3,387,967

                  	 	
                    $

                  	
                    101.639

                  	 	
                    $

                  	
                    16,727.80

                  	 	 	
                    4,383,956

                  	 	 	
                    7,771,923

                  	 
	
                    c/o
                      William R. Ziegler

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Satterlee
                      Stephens Burke & Burke LLP

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    230
                      Park Avenue, 11th Floor

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    New
                      York, NY 10169

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Fax:
                      212-682-9112

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    TIN:
                      

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Jeffrey
                      R. Freedman

                  	 	 	 	 	 	
                    1,687,970

                  	 	
                    $

                  	
                    50.639

                  	 	
                    $

                  	
                    8,334.20

                  	 	 	
                    2,184,192

                  	 	 	
                    3,872,162

                  	 
	
                    c/o
                      William R. Ziegler

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Satterlee
                      Stephens Burke & Burke

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    230
                      Park Avenue, 11th Floor

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    New
                      York, NY 10169

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Fax:
                      212-682-9112

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    TIN:
                      

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

          

           

           

          
            
              
              

            

            
              18

              
                

              

            

            
              
              

            

          

           

           

          
            
              	
                      Arvind
                        Sanger

                    	 	 	 	 	 	
                      837,600

                    	 	
                      $

                    	
                      25.128

                    	 	
                      $

                    	
                      4,135.58

                    	 	 	
                      1,083,836

                    	 	 	
                      1,921,436

                    	 
	
                      c/o
                        William R. Ziegler

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Satterlee
                        Stephens Burke & Burke LLP

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      230
                        Park Avenue, 11th Floor

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      New
                        York, NY 10169

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        212-682-9112

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      TIN:
                        

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Nancy
                        Naples O'Neill

                    	 	 	 	 	 	
                      846,300

                    	 	
                      $

                    	
                      25.389

                    	 	
                      $

                    	
                      4,178.54

                    	 	 	
                      1,095,094

                    	 	 	
                      1,941,394

                    	 
	
                      c/o
                        William R. Ziegler

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Satterlee
                        Stephens Burke & Burke LLP

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      230
                        Park Avenue, 11th Floor

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      New
                        York, NY 10169

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        212-682-9112

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      TIN:
                        

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Richard
                        H. Jukes

                    	 	 	
                      847,467

                    	 	 	 	 	
                      $

                    	
                      25.424

                    	 	
                      $

                    	
                      4,184.30

                    	 	 	
                      1,096,604

                    	 	 	
                      1,944,071

                    	 
	
                      611
                        Santa Maria St.

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Sugar
                        Land, Texas 77478

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      TIN:
                        

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Now
                        Ventures, LLC

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      50
                        Fountain Plaza

                    	 	 	 	 	 	
                      1,666,667

                    	 	
                      $

                    	
                      50.000

                    	 	
                      $

                    	
                      8,229.03

                    	 	 	
                      2,156,631

                    	 	 	
                      3,823,298

                    	 
	
                      Buffalo,
                        NY 14202

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        (716) 842-2514

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      TIN:

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Tom
                        Bandy

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      7880
                        San Felipe

                    	 	 	
                      1,677,667

                    	 	 	
                      1,677,667

                    	 	 	 	 	 	 	 	 	 	 	 	
                      3,355,334

                    	 
	
                      Ste.
                        200

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Houston,
                        TX 77063

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        281-759-3111

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      TIN:

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Steven
                        A. Webster

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      901
                        Threadneedle

                    	 	 	 	 	 	
                      1,680,567

                    	 	
                      $

                    	
                      50.417

                    	 	
                      $

                    	
                      8,297.66

                    	 	 	
                      2,174,617

                    	 	 	
                      3,855,184

                    	 
	
                      Houston,
                        Texas 77079

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        713-558-3011

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      TIN:
                        

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Partners
                        in Chisholm Energy

                      Partners:

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Tom
                        Bandy

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      7880
                        San Felipe

                    	 	 	 	 	 	
                      382,408

                    	 	 	 	 	 	 	 	 	 	 	 	
                      382,408

                    	 
	
                      Ste.
                        200

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Houston,
                        TX 77063

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        281-759-3111

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      TIN:

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

            

             

            
              
                
                

              

              
                19

                
                  

                

              

              
                
                

              

            

             

            
              	
                      Tom
                        Dugan

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      709
                        East Murray Drive

                    	 	 	 	 	 	
                      7,648,162

                    	 	 	 	 	 	 	 	 	 	 	 	
                      7,648,162

                    	 
	
                      Farmington,
                        NM 87401

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        505-327-4613

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Austin
                        Jones/Jerry Dumas

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Bronco
                        Ventures

                    	 	 	 	 	 	
                      1,529,632

                    	 	 	 	 	 	 	 	 	 	 	 	
                      1,529,632

                    	 
	
                      14900
                        Woodham Dr., Suite 170

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Houston,
                        TX 77073

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      David
                        Irwin

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      101
                        Linda Lane

                    	 	 	 	 	 	
                      764,816

                    	 	 	 	 	 	 	 	 	 	 	 	
                      764,816

                    	 
	
                      Heath,
                        TX 75032

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Fax:
                        775-244-5663

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Rick
                        Johnson

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      11902
                        Churchill Court Lane

                    	 	 	 	 	 	
                      764,816

                    	 	 	 	 	 	 	 	 	 	 	 	
                      764,816

                    	 
	
                      Houston,
                        TX 77024

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Harvey
                        Mueller

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      3479
                        West Vickery Blvd.

                    	 	 	 	 	 	
                      1,147,224

                    	 	 	 	 	 	 	 	 	 	 	 	
                      1,147,224

                    	 
	
                      Ft.
                        Worth, TX 76107

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Glenn
                        & Cheryl Penny

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      3109
                        Stagestand

                    	 	 	 	 	 	
                      764,816

                    	 	 	 	 	 	 	 	 	 	 	 	
                      764,816

                    	 
	
                      Duncan,
                        OK 73533

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      John
                        Chisholm

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      14918
                        Bramblewood

                    	 	 	 	 	 	
                      6,664,827

                    	 	 	 	 	 	 	 	 	 	 	 	
                      6,664,827

                    	 
	
                      Houston,
                        Texas 77079

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Total

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
                      12,635,513

                    	 	 	
                      70,466,046

                    	 	 	
                      2,089.075

                    	 	 	
                      343,821

                    	 	 	
                      90,107,265

                    	 	 	
                      173,208,824

                    	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      The
                        following shareholders have options to acquire the number
                        of shares
                        listed:

                    	 	 	 	 	 	 
	
                      Name

                    	 	 	
                      Shares

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Jerry
                        Dumas

                    	 	 	
                      9,250,000

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      John
                        Chisolm

                    	 	 	
                      250,000

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Wallace
                        Robertson

                    	 	 	
                      150,000

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Gary
                        Pittman

                    	 	 	
                      1,350,000

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Bill
                        Zeigler

                    	 	 	
                      350,000

                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

            

          

        

      

      
 

    

    
      
        
        

      

      
        20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]