Document:

Exhibit 10.3b

 

AMENDMENT TO SECURED CONVERTIBLE PROMISSORY
NOTE SERIES 2017-08

 

THIS AMENDMENT TO SECURED CONVERTIBLE PROMISSORY
NOTE SERIES 2017-08 (the “December 2018 Amendment”) is made effective as of December 21, 2018 (the “Effective
Date”) by and between Drone Aviation Holding Corp., a Nevada corporation (the “Company”) and ______ (the “Holder”)
(collectively the “Parties”).

 

BACKGROUND

 

A. The Company and
Holder are the parties to that certain Secured Convertible Promissory Note Series 2017-08 Note originally issued by the Company
to the Holder on August 3, 2017 (the “Note”);

 

B. The Parties amended
the Note on September 26, 2018 pursuant to the terms of an Amendment to Convertible Promissory Note (the “September 2018
Amendment”);

 

C. The principal
balance of the Note is $2,000,000.00 as of the Effective Date and the accrued and unpaid interest on the Note is $15,369.86 as
of December 21, 2018 (collectively, the “Indebtedness”); and

 

D. In exchange for
the Holder’s agreement to immediately convert the Indebtedness concurrently with the execution of this December 2018 Amendment
on the Effective Date (the “Conversion”) and such other good and valuable consideration provided for in this December
2018 Amendment, the Parties desire to amend the Note as set forth below and take such further action as set forth below as part
of the Company’s efforts to strengthen its balance sheet and improve its working capital.

 

NOW THEREFORE, in consideration of the
execution and delivery of the December 2018 Amendment and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

 

1. Section 2(c) of the Note shall be amended
to delete Section 2(c) in its entirety and replace it with the following:

 

2(c) Conversion Price.
For purposes of this Note, the term “Conversion Price” shall mean, with respect to conversion pursuant to Sections
2(a), (b), (c) and (d)(ii), $0.50 per share subject to adjustment in accordance with Section 2(g).

 

2. The Holder hereby
elects to convert the Indebtedness pursuant to the terms and conditions of the Note, as amended hereby and as set forth in the
Notice of Conversion attached hereto as Exhibit A.

 

3. This December 2018
Amendment shall be deemed part of, but shall take precedence over and supersede any provisions to the contrary contained in the
Note. All initial capitalized terms used in this December 2018 Amendment shall have the same meaning as set forth in the Note unless
otherwise provided. Except as specifically modified hereby, all of the provisions of the Note, which are not in conflict with the
terms of this December 2018 Amendment, shall remain in full force and effect.

 

    1

     

    

 

SIGNATURE PAGE TO NOTE AMENDMENT

 

IN WITNESS WHEREOF,
the parties hereto have executed this December 2018 Amendment as of the date first above written.

 

	DRONE AVIATION HOLDING CORP.	 	 	 
	 	 	 	 	 
	By:	 	 	By:	                  
	 	Kendall W. Carpenter	 	 	Trustee
	 	Chief Financial Officer	 	 	              

 

    2

     

    

 

EXHIBIT A

 

NOTICE OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert promissory NOTE)

 

The undersigned hereby elects to convert
the principal amount and accrued interest due under the Note (defined below) into shares of Common Stock to be issued pursuant
to the conversion of the Note (“Common Stock”) as set forth below, of Drone Aviation Holding Corp., a Nevada corporation
(the “Company”) according to the conditions of the Secured Convertible Promissory Note Series 2017-2018 issued by the
Company on August 3, 2017, as amended (the “Note”), as of the date written below. No fee will be charged to the Holder
for any conversion, except for transfer taxes, if any.

 

Conversion calculations:

 

	Date to Effect Conversion	 
	Balance of Principal Amount of the Note prior to Conversion:	$
	Principal Amount of Note to be Converted:	$
	Accrued Interest:	$
	Total Amount to be Converted:	$
	Number of shares of Common Stock to be Issued:	 
	Applicable Conversion Price:	$0.50
	Balance of Principal Amount of Note subsequent to Conversion:	$0
	
        Address for Delivery: Transfer Agent Book Shares

         

        or

         

        DWAC Instructions:

        Broker no: _________

        Account no: ___________
	 

 

	 	HOLDER:
	 	 	 
	 	By:	                      
	 	Name:	 
	 	Title:	 

 

    3Exhibit 10.4

 

AMENDMENT TO WARRANT

 

THIS AMENDMENT TO WARRANT (the “Amendment”)
is made effective as of December 21, 2018 (the “Effective Date”) by and between Drone Aviation Holding Corp., a Nevada
corporation (the “Company”) and Dr. Phillip Frost (the “Holder”) (collectively, the “Parties”).

 

BACKGROUND

 

A. The Company and
Holder are the parties to that certain Warrant to purchase 2,000,000 shares of the Company’s common stock, par value $0.0001
per share issued by the Company to the Holder on August 3, 2017 (the “Warrant”); and

 

B. The Parties desire
to amend the Warrant as set forth below.

 

NOW THEREFORE, in consideration of the
execution and delivery of this Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1. The definition of
“Exercise Price” in Section 1 of the Warrant shall be replaced in its entirety with the following new definition:

 

“Exercise Price” means
$0.50, subject to adjustment in accordance with Section 9.

 

2. This Amendment shall
be deemed part of, but shall take precedence over and supersede any provisions to the contrary contained in the Warrant. All initial
capitalized terms used in this Amendment shall have the same meaning as set forth in the Warrant unless otherwise provided. Except
as specifically modified hereby, all of the provisions of the Warrant, which are not in conflict with the terms of this Amendment,
shall remain in full force and effect.

 

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

 

	DRONE AVIATION HOLDING CORP.	 	 
	 	 	 	 	 
	By:	 	 	 	       
	 	Kendall W. Carpenter	 	 	DR. PHILLIP FROST
	 	Chief Financial OfficerExhibit 10.5

 

AMENDMENT TO NONQUALIFIED STOCK OPTION
AGREEMENT

 

THIS AMENDMENT TO NONQUALIFIED STOCK OPTION
AGREEMENT (the “Amendment”) is made effective as of December __, 2017 (the “Effective Date”) by and between
Drone Aviation Holding Corp., a Nevada corporation (the “Corporation”) and ________________ (the “Holder”)
(collectively the “Parties”).

 

BACKGROUND

 

A. The Corporation
and Holder are the parties to that certain Nonqualified Stock Option Agreement for __________ shares of the Corporation’s
Common Stock, par value $0.0001 per share that was granted by the Corporation to the Holder on _______, 2017 (the “Option
Agreement”); and

 

B. The Parties desire
to amend the Option Agreement, as set forth below.

 

NOW THEREFORE, in consideration of the
execution and delivery of the Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1. Section
2 – Exercise Price. The exercise price of the Common Shares covered by this Option shall be $0.50 per share.

 

2. This
Amendment shall be deemed part of, but shall take precedence over and supersede any provisions to the contrary contained in the
Option Agreement. All initial capitalized terms used in this Amendment shall have the same meaning as set forth in the Option Agreement
unless otherwise provided. Except as specifically modified hereby, all of the provisions of the Option Agreement, which are not
in conflict with the terms of this Amendment, shall remain in full force and effect.

 

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

 

	DRONE AVIATION HOLDING CORP.	 	ACCEPTED AND ACKNOWLEDGED:
	 	 	 	 	 
	By:	          	 	By:	                                 
	 	Kendall Carpenter	 	Name:	 
	 	EVP and CFOEX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS AGREEMENT (this “Agreement”) is entered into on December 20, 2018 to be effective as of December 28, 2018
(“Effective Date”), between Flotek Industries, Inc., a Delaware corporation (the “Company”), and Elizabeth Wilkinson (“Employee”). 

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows: 
 1.    Employment. The Company shall employ Employee,
and Employee shall be employed with the Company, upon the terms set forth in this Agreement for the period beginning on December 28, 2018 and ending on December 31, 2020 (the “Expiration Date”), unless terminated earlier as set
forth herein. The period during which the Employee is employed by the Company is referred to as the “Employment Period.” 

2.    Position and Duties. 

(a)    Employee shall serve as Chief Financial Officer of the Company and shall be responsible for such duties as may be
reasonably prescribed by the Board of Directors of the Company or the Chief Executive Officer of the Company. Employee will report to the Chief Executive Officer of the Company and work in the Company’s Houston office. 

(b)    Employee shall devote her reasonable best efforts and her full business time and attention (except for permitted
vacation periods, periods of illness or other incapacity) to the business and affairs of the Company, and it shall not be considered a violation of this Agreement for the Employee to, (a) engage in or serve such professional, civic, trade
association, charitable, community, religious or similar types of organizations or speaking selections as the Employee may select; (b) serve with the consent of the Chief Executive Officer of the Company on the boards of directors or advisory
committees of any entities, or engage in other business activities; and (c) attend to the Employee’s personal matters and finances so long as such services and activities in (a) – (c) do not significantly interfere with the
performance of Employee’s responsibilities as an employee of the Company. 
 3.    Base Salary, Equity Award and
Benefits. 
 (a)    Employee’s annual base salary for the Employment Period shall initially be $300,000 (the
“Base Salary”). The Base Salary shall be payable in equal installments in accordance with the Company’s general payroll practices and shall be subject to required withholding. Any change in Base Salary shall be at the sole discretion
of the Compensation Committee of the Board of Directors of the Company. During the Employment Period, Employee will be eligible to participate in the Company’s employee benefit programs. 

(b)    Employee shall be paid a one-time bonus of $25,000, payable with the first
payroll cycle of the Company that follows her commencement of employment. 

 (c)    On the Effective Date, the Company shall issue to Employee 60,000
shares of restricted common stock of the Company (the “Restricted Stock”), which will be subject to the provisions of a restricted stock agreement between the Company and Employee issued under the Company’s 2018 Long-Term Incentive
Plan. 
 (d)    Employee shall be eligible for annual bonuses in accordance with the Management Incentive Plan (the
“MIP”) of the Company, pursuant to such terms as shall be established by the Compensation Committee of the Board. The Employee’s target bonus percentage for the 2019 MIP shall be seventy-five percent (75%). Employee will be eligible
to participate in the Performance Unit Plan (the “PUP”) of the Company pursuant to the terms of that plan and such terms as shall be established by the Compensation Committee of the Board. The factor for the 2019 PUP to determine the
Employee’s award value shall be 1.35. 
 (e)    The Company shall reimburse Employee for all reasonable expenses
incurred in the course of performing duties under this Agreement which are consistent with the Company’s policies in effect with respect to travel, entertainment and other business expenses pursuant to applicable Treasury Regulations. 

(f)    Employee may be eligible to receive annual merit raises approved at the discretion of the Compensation Committee of
the Board of Directors of the Company. 
 (g)    Employee shall be eligible for vacations in accordance with Company
policies with a minimum of four weeks’ vacation during each year in the Employment Period. 

4.    Employment Term and Termination. 

(a)    The Employment Period shall continue until terminated upon the earlier of (i) the Expiration Date,
(ii) Employee’s resignation with or without Good Reason or Employee’s death or Disability or (iii) the termination of the Employee by the Company with or without Cause. 

(b)    Employee’s employment with the Company will be “At Will,” meaning that either Employee or the
Company may terminate Employee’s employment at any time and for any reason, with or without Cause or Good Reason. The date on which the Employees’ employment is terminated is referred herein as the “Termination Date.” If the
reason for termination is without Cause or with Good Reason, Employee would receive a severance package consistent with the terms and conditions set forth in Section 5 below. 

5.    Severance. 

(a)    If Employee’s employment with the Company is terminated by the Company without Cause or by Employee with Good
Reason prior to the Expiration Date, and provided that Employee signs and delivers to the Company a Confidential Severance and Release Agreement in a reasonable form as provided by the Company (the “Release Agreement”) within 60 days
following the termination of Employee’s employment with the Company (such 60th day being referred to as the “Release Date”) and does not revoke such signed Release Agreement
pursuant to the terms thereof, Employee shall be entitled to receive severance compensation equal to the following: 

 (i)    150 percent of the Employee’s annual Base Salary in
effect at the Termination Date, which amount under Section 5(a)(i) or (ii), as applicable, shall be payable in nine (9) monthly installments equal to one-ninth of such severance compensation, subject
to required withholding, payable at the end of each of the next nine (9) full calendar months following the first full calendar month following the Release Date, and 

(ii)    if the Employee timely and properly elects health continuation coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), the Company shall reimburse the Employee for the monthly COBRA premium paid by the Employee for Employee and Employee’s dependents who were covered immediately preceding the Date of Termination.
The reimbursement under Section 5(a)(2) shall be paid to the Employee prior to the last day of the month immediately following the month in which the Executive timely remits the premium payment, and the Employee shall be eligible to receive
such reimbursement until the earliest of: (i) the 12-month anniversary of the Date of Termination; (ii) the date the Employee (or Employee’s dependents, if applicable) is no longer eligible to
receive COBRA continuation coverage; and (iii) the date on which the Employee receives substantially similar coverage from another employer or other source. 

(b)    Notwithstanding anything to the contrary herein contained, except to the extent required by law, the Company shall
not be required to pay any amounts under this Section 5 or elsewhere in this Agreement if Employee is in breach of any of its obligations under this Agreement or any other Agreement with the Company, including without limitation, all employee
policies of the Company and any obligation relating to the treatment of Company confidential information and any non-compete obligation, but as to all of these, only if materially injurious to the Company.

 (c)    If Employee’s employment with the Company is terminated for Cause or death or Disability, or Employee
resigns without Good Reason, Employee shall be entitled to receive: (i) Employee’s Base Salary earned and payable through the Termination Date; (ii) any accrued but unused vacation/time off to the extent required under applicable law;
(iii) reimbursement for all incurred but unreimbursed expenses to the extent Employee is entitled to be reimbursed; and (iv) any other earned but unpaid compensation, if applicable, as of the Termination Date. 

(d)    For purposes of this Agreement, the following terms shall have the meanings set forth below: 

“Cause” shall mean (i) Employee’s failure to substantially perform one or more of Employee’s essential
duties and obligations to the Company (other than any such failure resulting from a Disability) which Employee fails to remedy in a reasonable period of time (not to exceed 60 days) after receipt of written notice from the Company;
(ii) Employee’s refusal or failure to comply with the reasonable and legal directives of the Board of Directors after written notice from the Board describing Employee’s failure to comply and Employee’s failure to remedy same
within 21 days of receiving written 

 
notice; (iii) any act of personal dishonesty, fraud or misrepresentation taken by Employee which was intended to result in or resulted in substantial gain or personal enrichment of the
Employee at the expense of the Company; (iv) Employee’s violation of a federal or state law or regulation applicable to the Company’s business which violation was or is reasonably likely to be materially injurious to the Company;
(v) Employee’s conviction of, or plea of nolo contendere or guilty to, a felony under the laws of the United States or any State that is reasonably likely to reasonably likely to be materially injurious to the Company;
(vi) Employee’s abuse of drugs, other narcotics or alcohol during working hours or where such abuse (whenever occurring) impacts on Employee’s working day, (vii) Employee’s breach of any of his obligations under any written
agreement with the Company (including without limitation this Agreement and any proprietary information and inventions assignment agreement with the Company) which, to the extent such breach is remediable, Employee fails to remedy in a reasonable
period of time (not to exceed 60 days) after receipt of written notice from the Company; or (viii) Employee’s violation of a policy of the Company which, to the extent such failure is remediable, Employee fails to remedy in a reasonable
period of time (not to exceed 30 days) after receipt of written notice from the Company. 
 “Disability” shall have
the meaning assigned to such term in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”). 

“Good Reason” shall exist upon the occurrence of one of the following Company actions (unless Employee consents in
writing to such action(s)): (i) a material reduction of the Employee’s salary and employee benefits to which the Employee was entitled immediately prior to such reduction unless such reduction applies to all similarly situated executives,
(ii) a material reduction in the duties, authority or responsibilities relative to the Employee’s duties, authority or responsibilities as in effect immediately prior to such reduction, provided, however, that if the Company assigns to the
Employee duties for another senior executive position with the Company, such assignment shall not constitute Good Reason; or (iii) the relocation of the Employee to a facility or a location more than fifty (50) miles from the
Employee’s then present location; provided, however, that (A) Employee must provide the Company with written notice of the occurrence of such action(s) within 60 days of the initial occurrence of such action(s) and of her intent to
terminate employment based on such action(s), (B) the written notice must describe the event constituting Good Reason in reasonable detail, and (C) within 30 days from the date that such written notice is received by the Company, the Company
must cure such action(s). 
 (e)    If there is a Change of Control of the Company prior to the Expiration Date:
(i) Restricted Stock granted pursuant to Section 3(b) will become vested as set forth in the Restricted Stock Agreement, (ii) awards granted pursuant to the then applicable MIP and PUP will become subject to, and affected by, the
Change of Control provisions contained in such plans, and (iii) if Employee’s employment with the Company is terminated by the Company without Cause or by Employee for Good Reason prior to the Expiration Date, Employee will thereafter be
entitled to receive severance pursuant and subject to the terms and conditions of Section 5 of this Agreement. 

 (f)    Notwithstanding anything herein to the contrary, (i) to the
extent required by Section 409A of the Code, each reimbursement or in-kind benefit provided under this Agreement shall be provided in a manner and at a time that complies with Section 409A;
(ii) if at the time of Employee’s termination of employment with the Company, Employee is a “specified employee” within the meaning of Section 409A of the Code, and the deferral of the commencement of any payments or
benefits (or portions thereof) otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the payment or benefits shall be
delayed to the earliest date required under Section 409A of the Code to the extent and amount necessary to comply with Section 409A of the Code, with such delayed payments to be accumulated and made in lump sum on the first business day
following the earliest date permitted by Section 409A of the Code, (iii) for purposes of this Section 5, a termination of employment only occurs if it constitutes a “separation from service” under Section 409A of the
Code, and (iv) each payment identified in Section 5(a)(i)-(iii), including each separate installment payment identified thereunder, will be considered the right to a series of separate payments. Notwithstanding any other provision in the
Agreement, the Company and Employee will cooperate in good faith to amend or modify the Agreement so that the payments under this Agreement qualify for exemption from or comply with Code Section 409A; provided, however, that the Company makes
no representations that the payments under the Agreement shall be exempt from or comply with Section 409A of the Code. 

6.    Notices. Any notice provided for in this Agreement shall be in writing and shall be either personally
delivered, sent by a nationally recognized overnight delivery service, or mailed by first class mail, return receipt requested, to the recipient at the address below indicated: 

Notices to Employee: 

Elizabeth Wilkinson 
 827
Greenbelt Drive 
 Houston, Texas 77079 

Notices to the Company: 

Flotek Industries, Inc. 
 Attn:
General Counsel 
 10603 W. Sam Houston Pkwy. N., Suite 300 

Houston, TX 77043 
 or such other address or to
the attention of such other person as the recipient party shall have specified by prior written notice to the sending party. Any notice under this Agreement shall be deemed to have been given when so delivered or, if sent by first class mail, three
(3) days after so mailed. 
 7.    Severability. Whenever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any provision 

 
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

8.    Complete Agreement. Except with respect to any proprietary information and inventions assignment agreement
between the Company and the Employee, this Agreement embodies with respect to the subject matter hereof the complete agreement and understanding among the parties and supersedes and preempts with respect to the subject matter hereof any prior
understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 

9.    Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an
original and all of which taken together constitute one and the same agreement. 
 10.    Successors and Assigns.
This Agreement is intended to bind and inure to the benefit of and be enforceable by Employee, the Company and their respective heirs, successors and assigns, except that Employee may not assign her rights or delegate her obligations hereunder
without the prior written consent of the Company except by operation of law to Employee’s estate upon the death of Employee. 

11.    Choice of Law. All issues and questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Texas or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Texas. 

12.    Consent to Personal Jurisdiction. Any suit, action or other proceeding arising out of or based upon this
Agreement and any other agreement with the Company which is not subject to the arbitration provisions of Section 13, shall be brought in the U.S. District Court for the Southern District of Texas, Houston Division. 

13.    Arbitration and Equitable Remedies. Employee agrees that any dispute or controversy arising out of or
relating to any interpretation, construction, performance or breach of this Agreement, shall be settled by arbitration to be held in Houston, Texas, in accordance with the rules then in effect of the American Arbitration Association, provided
however, the parties will be entitled to full and liberal evidentiary discovery in accordance with the rules governing civil litigation in courts of the same jurisdiction. The arbitrator may grant injunctions or other relief in such dispute or
controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The Company shall pay the legal costs
and expenses of such arbitration; however, the prevailing party shall be entitled to recover from the non-prevailing party all reasonable legal costs and expenses incurred including time of law firm staff,
court costs, attorneys’ fees, and all other related expenses incurred in such arbitration. 

 14.    Amendment and Waiver. The provisions of this Agreement may
be amended or waived only with the prior written consent of the Company and Employee, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of such
provision or any other provision of this Agreement. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
Effective Date. 
  

			
	FLOTEK INDUSTRIES, INC.
		
	By:	 	/s/William H. York
	Name:	 	William H. York
	Title:	 	Chief Administrative Officer

  

	
	/s/Elizabeth T. Wilkinson
	Elizabeth Wilkinson

 SIGNATURE PAGE TO EMPLOYMENT AGREEMENT

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