Document:

<PAGE>   1

                          [FORM OF REPLACEMENT WARRANT]

                       WARRANT TO PURCHASE COMMON STOCK OF
                             FLOTEK INDUSTRIES, INC.

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

                                                                ______ Shares of
Warrant No. __                                                  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.

<PAGE>   2

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
April 30, 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.

                                      -2-
<PAGE>   3

     (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:

                                      -3-
<PAGE>   4

          "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

                                      -4-
<PAGE>   5

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

                                      -5-
<PAGE>   6

     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

                                      -6-
<PAGE>   7

     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

                                      -7-
<PAGE>   8

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

                                      -8-
<PAGE>   9

     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 class mail, 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.

                                      -9-
<PAGE>   10

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.

                                      -10-
<PAGE>   11

     IN WITNESS WHEREOF, the undersigned has duly signed this Warrant as of this
30th day of April, 2000.

                                      FLOTEK INDUSTRIES, INC.

                                      By:
                                         ---------------------------------------
                                         Jerry D. Dumas, Sr., President and CEO

<PAGE>   12

                                 ASSIGNMENT FORM

     FOR VALUE RECEIVED, the Undersigned Holder of the attached Warrant, hereby
sells, assigns and transfers unto _______________________________ the right to
purchase ______________________________ shares of Common Stock of FLOTEK
INDUSTRIES, INC. evidenced by the attached Warrant, and does hereby irrevocably
constitute and appoint _________________________________ Attorney to transfer
the said Warrant on the books of the Company with full power of substitution.

                                      HOLDER:

                                      ------------------------------------------
                                      Name:

Dated:                   ,
       ------------------  ------

In the presence of:

---------------------------------
Name:

(NOTE: The signature of the Holder on the foregoing Assignment must correspond
exactly to the name as written on the face of the Warrant, without any
alteration, enlargement or change whatsoever.)

<PAGE>   13

                                SUBSCRIPTION FORM

     The Undersigned, the Holder of the attached Warrant, hereby irrevocably
elects to exercise purchase rights represented by such Warrant for, and to
purchase thereunder, the following shares of Common Stock of FLOTEK INDUSTRIES,
INC.:

<TABLE>
<CAPTION>
               Number of Shares              Purchase Price Per Share
               <S>                           <C>

</TABLE>

     The undersigned herewith makes payment of $_____ therefor, and requests
that certificates for such shares (and any warrants or other property issuable
upon such exercise) be issued in the name of and delivered to __________  whose
address is __________ and, if such shares shall not include all of the shares
issuable under such warrant, that a new warrant of like tenor and date for the
balance of the shares issuable thereunder be delivered to the undersigned.

                                      HOLDER:

                                      ------------------------------------------
                                      Name:

Dated:                   ,
       ------------------  ------<PAGE>   1
================================================================================

                          REGISTRATION RIGHTS AGREEMENT

                                  By and Among

                   THE PRINCIPAL SHAREHOLDERS (DEFINED HEREIN)

                                       and

                             FLOTEK INDUSTRIES INC.

                           Common Stock, no par value

                           Dated as of April 30, 2000

================================================================================
<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                Page
                                                                                ----
<S>                                                                             <C>
1.       Registration under Securities Act, Etc                                  1

         1.1      Registration on Request                                        1

         1.2      Piggy-Back Registration                                        3

         1.3      Registration Procedures                                        4

         1.4      Underwritten Offerings                                         6

         1.5      Preparation; Reasonable Investigation                          7

         1.6      Qualification to Obligations under Registration Covenants      7

         1.7      Indemnification                                                8

2.       Definitions                                                            11

3.       Rule 144 and Rule 144A                                                 12

4.       Amendments and Waivers                                                 12

5.       Nominees for Beneficial Owners                                         12

6.       Notices                                                                13

7.       Assignment                                                             13

8.       Calculation of Percentage Interests in Registrable Securities          13

9.       No Inconsistent Agreements                                             13

10.      Remedies                                                               13

11.      Severability                                                           13

12.      Entire Agreement                                                       14

13.      Descriptive Headings                                                   14

14.      Governing Law                                                          14

15.      Counterparts; Partial Execution                                        14

16.      Term                                                                   14

17.      Supersession of Existing Registration Rights Agreements                14
</TABLE>

<PAGE>   3

     REGISTRATION RIGHTS AGREEMENT, dated as of April 30, 2000, between Flotek
Industries Inc, an Alberta corporation (the "Company"), and each of the parties
identified on Schedule A hereto (the "Principal Stockholders").

     Capitalized terms used herein but not otherwise defined shall have the
meanings given them in Section 2. All Dollar amounts referred to herein are US
Dollars, unless otherwise noted.

     1.   Registration under Securities Act, Etc.

          1.1  Registration on Request.

               (a) Request. At any time, or from time to time, upon the written
request of one or more of the Principal Shareholders holding 25% or more of the
Registrable Securities (the "Initiating Holders") that the Company either, as
directed by the Initiating Holders, (i) effect the registration under the
Securities Act or (ii) file a prospectus (which for the purposes of this
agreement shall include a statement of material facts or short form prospectus)
for the purpose of qualifying for distribution in British Columbia or Ontario
pursuant to Applicable Canadian Securities Laws (any such registration or
prospectus filing being hereinafter referred to as a "registration," and any
such registration statement or prospectus being hereinafter referred to as a
"registration statement") of all or part of such Initiating Holders' Registrable
Securities, the Company promptly will give written notice of such requested
registration to all of the other Principal Shareholders, and thereupon the
Company will use reasonable efforts to effect, at the earliest possible date,
the registration under the Securities Act or the Applicable Canadian Securities
Laws, as directed by the Initiating Holders in their request, of (i) the
Registrable Securities which the Company has been so requested to register by
such Initiating Holders, and (ii) all other Registrable Securities which the
Company has been requested to register by the other Principal Shareholders (such
holders together with the Initiating Holders hereinafter are referred to as the
"Selling Holders") by written request given to the Company within 30 days after
the giving of such written notice by the Company, all to the extent requisite to
permit the disposition of the Registrable Securities so to be registered.

               (b) Registration of Other Securities. Whenever the Company shall
effect a registration pursuant to this Section 1.1, no securities other than
Registrable Securities held by Principal Shareholders shall be included among
the securities covered by such registration unless Selling Holders of greater
than 51% of the Registrable Securities to be included in such registration shall
have consented in writing to the inclusion of such other securities, which
consent shall not be unreasonably withheld or delayed, provided, however, that
no such other securities shall be included in such registration to the extent
that such inclusion would reduce the number of Registrable Securities in such
registration that any Selling Holder has requested be included therein.

               (c) Registration Statement Form. Registrations under this Section
1.1 shall be on such appropriate registration form of the Commission or the form
required under Applicable Canadian Securities Laws, as the case may be, as shall
be reasonably selected by the Company.

<PAGE>   4

               (d) Effective Registration Statement. A registration requested
pursuant to this Section 1.1 shall not be deemed to have been effected unless a
registration statement with respect thereto has become effective and remained
effective in compliance with the provisions of the Securities Act or Applicable
Canadian Securities Laws, as the case may be, with respect to the disposition of
all Registrable Securities covered by such registration statement for a period
of at least 90 days.

               (e) Selection of Underwriters. The underwriter or underwriters of
each underwritten offering of the Registrable Securities so to be registered
shall be selected by the Selling Holders of at least 50% of the Registrable
Securities to be included in such registration and shall be reasonably
acceptable to the Company.

               (f) Priority in Requested Registration. If the managing
underwriter of an underwritten offering shall advise the Company in writing (and
the Company shall so advise each Selling Holder of Registrable Securities
requesting registration of such advice) that, in its opinion, the number of
securities requested to be included in such registration is sufficiently large
to materially adversely affect the success of the offering, the Company, except
as provided in the following sentence, will include in such registration, to the
extent of the number and type which the Company is so advised can be sold in
such offering, Registrable Securities requested to be included in such
registration on the following basis:

         (i) first, pro rata among the Initiating Holders; and

         (ii) second, pro rata among the other Selling Holders.

As used herein, the term "pro rata" among a particular group of shareholders
shall mean allocated among such shareholders proportionally, on the basis of the
number of Registrable Securities held by each shareholder in such group as
compared to the total number of Registrable Securities held by all shareholders
in such group. To the extent that all of the Registrable Securities of Selling
Holders so requested to be registered are excluded from the offering, the
holders of such Registrable Securities shall be deemed not to have used a demand
registration pursuant to this Section 1.1.

               (g) Limitations on Registration on Request. Notwithstanding
anything in this Section 1.1 to the contrary, the Company shall not be required
to take any action to file a registration statement pursuant to this Section
1.1:

         (i) within 120 days following the effective date of any registered
     offering of the Company's securities;

         (ii) with respect to any offering having an aggregate sales price
     (before deduction of underwriting discounts and expenses of sale) of less
     than $500,000;

         (iii) with respect to any offering having an aggregate sales price
     (before deduction of underwriting discounts and expenses of sale) of more
     than $10,000,000 unless such offering is firmly underwritten; or

                                       2
<PAGE>   5
         (iv) after (A) the Principal Shareholders collectively hold fewer than
     100,000 shares of Registrable Securities, or (B) the expiration of the term
     of this Agreement.

               (h) Expenses. The Company will pay all Registration Expenses in
connection with any registration requested pursuant to this Section 1.1.

     1.2  Piggy-Back Registration .

         (a) Right to Include Registrable Securities. If the Company at any time
proposes to file a registration statement to register any of its securities of
the same class as the Registrable Securities under the Securities Act or the
Applicable Canadian Securities Laws (except for a registration statement or
prospectus filed in connection with an employee benefit plan, a transaction
relating to a merger or business combination, a transaction relating to an
exchange offer, a transaction relating to an acquisition of assets or
securities, or a transaction otherwise described in Rule 145 of the Securities
Act), whether or not for sale for its own account, it will each such time give
prompt written notice to all holders of Registrable Securities of its intention
to do so and of such holders' rights under this Section 1.2. Upon the written
request of any such holder (a "Requesting Holder") (which request shall specify
the amount of Registrable Securities intended to be disposed of by such
Requesting Holder) made as promptly as practicable and in any event within 20
days after the receipt of any such notice (15 days if the Company states in such
written notice or gives telephonic notice to all registered holders of
Registrable Securities, with written confirmation to follow promptly thereafter,
stating that (i) such registration will be on Form S-3 and (ii) such shorter
period of time is required because of a planned filing date), the Company will
use reasonable efforts to effect the registration or file the prospectus under
the Securities Act or the Applicable Canadian Securities Laws, as the case may
be, of all Registrable Securities which the Company has been so requested to
register by the Requesting Holders thereof. No registration effected under this
Section 1.2 shall relieve the Company of its obligation to effect any
registration upon request under Section 1.1.

         (b) Priority in Incidental Registrations. If the managing underwriter
of any underwritten offering shall deliver a written opinion to the holders of
Registrable Securities that the total amount of Registrable Securities requested
to be included in such registration would have a material adverse effect on such
offering then the Company will include in such registration, to the extent of
the number which the Company is so advised can be sold in (or during the time
of) such offering, first, all securities proposed by the Company to be sold for
its own account, and second, such Registrable Securities requested to be
included in such registration pursuant to this Agreement, pro rata among
Requesting Holders; provided that if securities are being offered for the
account of other persons or entities as well as the Company, such reduction
shall not represent a greater fraction of the number of securities intended to
be offered by holders of Registrable Securities than the fraction of similar
reductions imposed on such other persons or entities over the amount of
securities they intended to offer.

         (c) Expenses. The Company will pay all Registration Expenses in
connection with any registration effected pursuant to this Section 1.2.

                                       3
<PAGE>   6

     1.3 Registration Procedures . If and whenever the Company is required to
effect the registration of any Registrable Securities under the Securities Act
or the Applicable Canadian Securities Laws as provided in Sections 1.1 and 1.2.
the Company will, as expeditiously as possible, use reasonable efforts to:

          (i) prepare and (within 120 days after the end of the period within
     which requests for registration may be given to the Company or in any event
     as soon thereafter as practicable) file with the Commission or the Canadian
     Securities Regulators the requisite registration statement to effect such
     registration and thereafter use reasonable efforts to cause such
     registration statement to become effective;

          (ii) prepare and file with the Commission or the Canadian Securities
     Regulators such amendments and supplements to such registration statement
     and the prospectus used in connection therewith as may be necessary to keep
     such registration statement effective and to comply with the provisions of
     the Securities Act or the Applicable Canadian Securities Laws, as the case
     may be, with respect to the disposition of all Registrable Securities
     covered by such registration statement for a period of at least 90 days;

          (iii) furnish to each seller of Registrable Securities covered by such
     registration statement, such number of conformed copies of such
     registration statement and of each such amendment and supplement thereto
     (in each case including all exhibits), such number of copies of the
     prospectus contained in such registration statement (including each
     preliminary prospectus and any summary prospectus) and any other prospectus
     filed under Rule 424 under the Securities Act, in conformity with the
     requirements of the Securities Act or the Applicable Canadian Securities
     Laws, as the case may be, and such other documents, as such seller may
     reasonably request;

          (iv) register or qualify all Registrable Securities and other
     securities covered by any registration statement under the Securities Act,
     under Applicable Canadian Securities Laws, under such other securities or
     blue sky laws of such States of the United States of America where an
     exemption is not available and as the sellers of Registrable Securities
     covered by such registration statement shall reasonably request; keep such
     registration or qualification in effect for so long as such registration
     statement remains in effect; and take any other action which may be
     reasonably necessary or advisable to enable such sellers to consummate the
     disposition in such jurisdictions of the securities to be sold by such
     sellers, except that (x) the Company shall not for any such purpose be
     required to qualify generally to do business as a foreign corporation in
     any jurisdiction wherein it would not but for the requirements of this
     subdivision (iv) be obligated to be so qualified or to consent to general
     service of process in any such jurisdiction and (y) the Company shall not
     be required to register or qualify Registrable Securities in any state or
     province where such qualification or registration would place an undue
     burden on the Company or which would require that the Company consent

<PAGE>   7

     or agree to restrictions, covenants, or qualifications which the Company
     deems unacceptable;

          (v) cause all Registrable Securities covered by such registration
     statement to be registered with or approved by such other federal,
     provincial or state governmental agencies or authorities as may be
     necessary in the opinion of counsel to the Company and counsel to the
     underwriters to enable the seller or sellers thereof to consummate the
     disposition of such Registrable Securities;

          (vi) furnish at the effective date of such registration statement and,
     if applicable, the date of the closing under the underwriting agreement, to
     each seller of Registrable Securities, and each such seller's underwriters,
     a signed counterpart of (x) an opinion of counsel for the Company, dated
     the effective date of such registration statement and (y) a "comfort"
     letter signed by the independent public accountants who have certified the
     Company's financial statements included or incorporated by reference in
     such registration statement, covering substantially the same matters with
     respect to such registration statement (and the prospectus included
     therein) and, in the case of the accountants' comfort letter, with respect
     to events subsequent to the date of such financial statements, as are
     customarily covered in opinions of issuer's counsel and in accountants'
     comfort letters delivered to the underwriters in underwritten public
     offerings of securities and, in the case of the accountants' comfort
     letter, such other financial matters, and, in the case of the legal
     opinion, such other legal matters, as the sellers of the Registrable
     Securities covered by such registration statement, or the underwriters, may
     reasonably request;

          (vii) notify each seller of Registrable Securities covered by such
     registration statement at any time when a prospectus relating thereto is
     required to be delivered under the Securities Act or the Applicable
     Canadian Securities Laws, upon discovery that, or upon the happening of any
     event as a result of which, the prospectus included in such registration
     statement, as then in effect, includes an untrue statement of a material
     fact or omits to state any material fact required to be stated therein or
     necessary to make the statements therein not misleading, in the light of
     the circumstances under which they were made, and at the request of any
     such seller promptly prepare and furnish to it a reasonable number of
     copies of a supplement to or an amendment of such prospectus as may be
     necessary so that, as thereafter delivered to the purchasers of such
     securities, such prospectus shall not include an untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading in the
     light of the circumstances under which they were made;

          (viii) otherwise comply with all applicable rules and regulations of
     the Commission and the Canadian Securities Regulators, and, if required,
     make available to its security holders, as soon as reasonably practicable,
     an earnings statement covering the period of at least twelve months, but
     not more than eighteen months, beginning with the first full calendar month
     after the effective date of such registration statement, which earnings
     statement shall satisfy the

                                       5
<PAGE>   8

     provisions of Section 11(a) of the Securities Act and Rule 158 promulgated
     thereunder, and promptly furnish to each such seller of Registrable
     Securities a copy of any amendment or supplement to such registration
     statement or prospectus;

          (ix) keep each Selling Holder and each Requesting Holder advised in
     writing as to the initiation and progress of any registration under Section
     1.1 or 1.2 hereunder, as the case may be;

          (x) provide and cause to be maintained a transfer agent and registrar
     (which, in each case, may be the Company) for all Registrable Securities
     covered by such registration statement from and after a date not later than
     the effective date of such registration; and

          (xi) list all Registrable Securities covered by such registration
     statement on any securities exchange on which Registrable Securities of the
     same class and, if applicable, series, covered by such registration
     statement are then listed or on the Nasdaq Stock Market ("Nasdaq") if the
     Registrable Securities are reported on Nasdaq.

The Company may require each seller of Registrable Securities, as to which any
registration is being effected, to furnish the Company such information
regarding such seller and the distribution of such securities, as required by
law or the Commission or the Canadian Securities Regulators, or which the
Company's counsel otherwise deems appropriate.

     Each holder of Registrable Securities agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in
subdivision (vii) of this Section 1.3 , such holder will forthwith discontinue
such holder's disposition of Registrable Securities pursuant to the registration
statement relating to such Registrable Securities until such holder's receipt of
the copies of the supplemented or amended prospectus contemplated by subdivision
(vii) of this Section 1.3 and, if so directed by the Company, will deliver to
the Company (at the Company's expense) all copies, other than permanent file
copies, then in such holder's possession of the prospectus relating to such
Registrable Securities current at the time of receipt of such notice.

     1.4  Underwritten Offerings .

          (a) Requested Underwritten Offerings. If requested by the
underwriters for any underwritten offering by holders of Registrable Securities
pursuant to a registration requested under Section 1.1, the Company will use all
reasonable efforts to enter into an underwriting agreement with such
underwriters for such offering, such agreement to be reasonably satisfactory in
substance and form to each such holder and the underwriters and to contain such
representations and warranties by the Company and such other terms as are
generally prevailing in agreements of that type, including, without limitation,
indemnities to the effect and to the extent provided in Section 1.7. The holders
of the Registrable Securities proposed to be sold by such underwriters will
reasonably cooperate with the Company in the negotiation of the underwriting
agreement. Such holders of Registrable Securities to be sold by

                                       6
<PAGE>   9

such underwriters shall be parties to such underwriting agreement and may, at
their option, require that any or all of the representations and warranties by,
and the other agreements on the part of, the Company to and for the benefit of
such underwriters shall also be made to and for the benefit of such holders of
Registrable Securities and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement be conditions
precedent to the obligations of such holders of Registrable Securities. Any such
holder of Registrable Securities shall not be required to make any
representations or warranties to or agreements with the Company or the
underwriters other than representations, warranties or agreements regarding such
holder, such holder's Registrable Securities and such holder's intended method
of distribution or any other representations required by applicable law.

            (b) Incidental Underwritten Offerings. If the Company proposes to
register any of its securities under the Securities Act or the Applicable
Canadian Securities Laws as contemplated by Section 1.2 and such securities are
to be distributed by or through one or more underwriters, the Company will, if
requested by any Requesting Holder of Registrable Securities, use reasonable
efforts to arrange for such underwriters to include all the Registrable
Securities to be offered and sold by such Requesting Holder among the securities
of the Company to be distributed by such underwriters. The holders of
Registrable Securities to be distributed by such underwriters shall be parties
to the underwriting agreement between the Company and such underwriters and may,
at their option, require that any or all of the representations and warranties
by, and the other agreements on the part of, the Company to and for the benefit
of such underwriters shall also be made to and for the benefit of such holders
of Registrable Securities and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement be conditions
precedent to the obligations of such holders of Registrable Securities. Any such
Requesting Holder of Registrable Securities shall not be required to make any
representations or warranties to or agreements with the Company or the
underwriters other than representations, warranties or agreements regarding such
Requesting Holder, such Requesting Holder's Registrable Securities and such
Requesting Holder's intended method of distribution or any other representations
required by applicable law.

     1.5 Preparation; Reasonable Investigation. In connection with the
preparation and filing of each registration statement under the Securities Act
or the Applicable Canadian Securities Laws pursuant to this Agreement, the
Company (i) shall give the holders of Registrable Securities registered under
such registration statement, their underwriters, if any, and their respective
counsel and accountants the reasonable opportunity to participate in the
preparation of such registration statement, each prospectus included therein or
filed with the Commission or the Canadian Securities Regulators, and each
amendment thereof or supplement thereto, and (ii) shall promptly notify the
registered holders of Registrable Securities and their counsel of any stop order
issued or threatened by the Commission or any Canadian Securities Regulators and
take all reasonable actions required to prevent the entry of such stop order or
to remove it if entered.

     1.6 Qualification to Obligations under Registration Covenants . The Company
shall be entitled to postpone for a reasonable period of time (but not exceeding
120 days) the filing of any registration statement otherwise required to be
prepared and filed by it pursuant to Section 1.1 if (i) the Company determines,
in its reasonable judgment, that such registration and offering would interfere
with any financing, acquisition, corporate reorganization or other

                                       7
<PAGE>   10

material transaction involving the Company or any of its affiliates or (ii) the
Company is in possession of information concerning it or its business and
affairs, the public disclosure of which would have a material adverse effect on
the Company and which the Company has determined it is not legally obligated to
disclose, and the Company promptly gives the holders of Registrable Securities
requesting registration thereof pursuant to Section 1.1 written notice of such
determination, containing a general statement of the reasons for such
postponement and an approximation of the anticipated delay. If the Company shall
so postpone the filing of a registration statement, Initiating Holders
requesting registration thereof pursuant to Section 1.1 shall have the right to
withdraw the request for registration by giving written notice to the Company
within 30 days after receipt of the notice of postponement and, in the event of
such withdrawal, such request shall not be counted for purposes of the requests
for registration to which holders of Registrable Securities are entitled
pursuant to Section 1.1 hereof.

     1.7 Indemnification.

         (a) Indemnification by the Company. The Company will, and hereby does,
indemnify and hold harmless, in the case of any registration statement filed
pursuant to Section 1.1 or 1.2, each seller of any Registrable Securities
covered by such registration statement and each other Person who participates as
an underwriter in the offering or sale of such securities and each other Person,
if any, who controls such seller or any such underwriter within the meaning of
the Securities Act or the Applicable Canadian Securities Laws, and their
respective directors, officers, partners, employees and affiliates against any
losses, claims, damages or liabilities, joint or several, to which such seller
or underwriter or any such director, officer, partner, employee, affiliate or
controlling person may become subject under the Securities Act or the Applicable
Canadian Securities Laws or otherwise, including, without limitation, the
reasonable fees and expenses of legal counsel, insofar as such losses, claims,
damages or liabilities (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in any
registration statement under which such securities were registered under the
Securities Act or the Applicable Canadian Securities Laws, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein in light of the circumstances in which they were made not
misleading, and the Company will reimburse such seller or underwriter and each
such director, officer, partner, employee, affiliate and controlling Person for
any legal or any other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, liability, action or
proceeding; provided, that the Company shall not be liable in any such case to
the extent that any such loss, claim, damage, liability (or action or proceeding
in respect thereof) or expense arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company through an instrument duly
executed by or on behalf of such seller or underwriter, as the case may be,
specifically stating that it is for use in the preparation thereof. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such seller or any such director, officer, employee,
affiliate, partner or controlling person and shall survive the transfer of such
securities by such seller.

                                       8
<PAGE>   11

         (b) Indemnification by the Sellers. As a condition to including any
Registrable Securities in any registration statement, the Company shall have
received an undertaking satisfactory to it from the prospective seller of such
Registrable Securities, to indemnify and hold harmless the Company, and each
director of the Company, each officer of the Company and each other Person, if
any, who participates as an underwriter in the offering or sale of such
securities and each other Person who controls the Company or any such
underwriter within the meaning of the Securities Act or the Applicable Canadian
Securities Laws, and their respective directors, officers, partners, employees
and affiliates, against any losses, claims, damages or liabilities, joint or
several, to which such person may become subject under the Securities Act or the
Applicable Canadian Securities Laws or otherwise, including, without limitation,
the reasonable fees and expenses of legal counsel, insofar as such losses,
claims, damages or liabilities (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in any
registration statement under which such securities were registered under the
Securities Act or the Applicable Canadian Securities Laws, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein in light of the circumstances in which they were made not
misleading, and to reimburse such person for any legal or any other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, liability, action or proceeding; but only to the extent that
any such loss, claim, damage, liability (or action or proceeding in respect
thereof) or expense arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company through an instrument duly
executed by or on behalf of such seller, specifically stating that it is for use
in the preparation thereof; provided, however, that the liability of such
indemnifying party under this Section 1.7(b) shall be limited to the amount of
proceeds received by such indemnifying party in the offering giving rise to such
liability. Such indemnity shall remain in full force and effect, regardless of
any investigation made by or on behalf of the Company or any such director,
officer or controlling person and shall survive the transfer of such securities
by such seller.

         (c) Notices of Claims, etc. Within ten days of receipt by an
indemnified party of notice of the commencement of any action or proceeding
involving a claim referred to in the preceding subdivisions of this Section 1.7,
such indemnified party will, if a claim in respect thereof is to be made against
an indemnifying party, give written notice to the latter of the commencement of
such action; provided, however, that the failure of any indemnified party to
give notice as provided herein shall not relieve the indemnifying party of its
obligations under the preceding subdivisions of this Section 1.7, except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any such action is brought against an indemnified party the
indemnifying party shall be entitled to participate in and to assume the defense
thereof, jointly with any other indemnifying party similarly notified to the
extent that it may wish, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof,

                                       9
<PAGE>   12

provided, however, that if the indemnified party reasonably believes it is
advisable for it to be represented by separate counsel because there exists a
conflict of interest between its interests and those of the indemnifying party
with respect to such claim, or there exist defenses available to such
indemnified party which may not be available to the indemnifying party, or if
the indemnifying party shall fail to assume responsibility for such defense, the
indemnified party may retain counsel satisfactory to it and the indemnifying
party shall pay all reasonable fees and expenses of such counsel. No
indemnifying party shall be liable for any settlement of any action or
proceeding effected without its written consent. No indemnifying party shall,
without the consent of the indemnified party, consent to entry of any judgment
or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect to such claim or litigation or which
requires action by the indemnified party.

         (d) Contribution. If the indemnification provided for in this Section
1.7 shall for any reason be held by a court to be unavailable to an indemnified
party under subparagraph (a) or (b) hereof in respect of any loss, claim, damage
or liability, or any action in respect thereof, then, in lieu of the amount paid
or payable under subparagraph (a) or (b) hereof, the indemnified party and the
indemnifying party under subparagraph (a) or (b) hereof shall contribute to the
aggregate losses, claims, damages and liabilities (including legal or other
expenses reasonably incurred in connection with investigating the same), (i) in
such proportion as is appropriate to reflect the relative fault of the Company
and the prospective sellers of Registrable Securities covered by the
registration statement which resulted in such loss, claim, damage or liability,
or action in respect thereof, with respect to the statements or omissions which
resulted in such loss, claim, damage or liability, or action in respect thereof,
as well as any other relevant equitable considerations or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such
proportion as shall be appropriate to reflect the relative benefits received by
the Company and such prospective sellers from the offering of the securities
covered by such registration statement. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. Such prospective sellers' obligations to
contribute as provided in this subparagraph (d) are several in proportion to the
relative value of their respective Registrable Securities covered by such
registration statement and not joint. In addition, no Person shall be obligated
to contribute hereunder any amounts in payment for any settlement of any action
or claim effected without such Person's consent, which consent shall not be
unreasonably withheld or delayed.

         (e) Other Indemnification. Indemnification and contribution similar to
that specified in the preceding subdivisions of this Section 1.7 (with
appropriate modifications) shall be given by the Company and each seller of
Registrable Securities with respect to any required registration or other
qualification of securities under any federal or state law or provincial law or
any regulation of any governmental authority other than the Securities Act or
the Applicable Canadian Securities Laws.

         (f) Indemnification Payments. The indemnification and contribution
required by this Section 1.7 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred.

                                       10
<PAGE>   13

     2. Definitions. As used herein, unless the context otherwise requires, the
following terms have the following respective meanings:

     "Affiliate" means, with respect to any person, any other person that
directly or indirectly controls or is controlled by or is under common control
with such person.

     "Applicable Canadian Securities Laws" means the securities acts or similar
statutes in effect in each of British Columbia and Ontario, Canada, and having
application to the Company or any transaction or proposed transaction to which
the Company is a party, as they may be amended or replaced from time to time,
and includes the regulations and rules promulgated thereunder, and further
includes all policies, rules and mandatory guidelines imposed by The Vancouver
Stock Exchange, The Toronto Stock Exchange or any other securities exchange on
which the securities of the Company are, at any relevant time, posted for
trading.

     "Canadian Securities Regulators" means the Securities Commissions or
similar regulatory authorities having jurisdiction in each of British Columbia
and Ontario, Canada, and further includes The Vancouver Stock Exchange, The
Toronto Stock Exchange or any other securities exchange on which the securities
of the Company are, at any relevant time, posted for trading.

     "Commission" means the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, or
any similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time. Reference to a
particular section of the Securities Exchange Act of 1934, as amended, shall
include a reference to the comparable section, if any, of any such similar
federal statute.

     "Initiating Holder" is defined in Section 1.1.

     "Person" means any individual, corporation, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company,
government (or an agency or political subdivision thereof) or other entity of
any kind.

     "Registrable Securities" means (i) the shares of Common Stock owned on the
date hereof by the parties hereto or issued or issuable to the parties hereto
pursuant to the exercise of options (whether or not presently or then
exercisable) or warrants or the conversion of convertible securities owned by
them, or which they have the right to acquire pursuant to that certain
Securities Purchase and Exchange Agreement of even date herewith, on the date
hereof, and (ii) any Related Registrable Securities. As to any particular
Registrable Securities, such securities shall cease to be Registrable Securities
when (a) a registration statement with respect to the sale of such securities
shall have become effective under the Securities Act or the Applicable Canadian
Securities Laws and such securities shall have been disposed of in accordance
with such registration statement, (b) they shall have been distributed to the
public pursuant to Rule 144 (or any successor provision) under the Securities
Act, (c) they shall have been otherwise

                                       11
<PAGE>   14

transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent public
distribution of them shall not require registration of them under the Securities
Act, or (d) they shall have ceased to be outstanding. All references to
percentages of Registrable Securities shall be calculated pursuant to Section 8.

     "Registration Expenses" means all expenses incident to the Company's
performance of or compliance with Section 1, including, without limitation, all
registration, filing and NASD fees, all fees and expenses of complying with
securities or blue sky laws, all word processing, duplicating and printing
expenses, messenger and delivery expenses, the fees and disbursements of counsel
for the Company and of its independent public accountants, including the
expenses of "cold comfort" letters required by or incident to such performance
and compliance, and any fees and disbursements of underwriters customarily paid
by issuers or sellers of securities (excluding any underwriting discounts or
commissions with respect to the Registrable Securities or any other fee measured
by the number or amount of Registrable Securities).

     "Related Registrable Securities" means any securities of the Company issued
or issuable with respect to the securities by way of a dividend or stock split
or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization or otherwise.

     "Requesting Holder" is defined in Section 1.2.

     "Securities Act" means the Securities Act of 1933, or any similar federal
statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. References to a particular section of the
Securities Act of 1933 shall include a reference to the comparable section, if
any, of any such similar statute.

     "Selling Holder" is defined in Section 1.1.

     3. Rule 144 and Rule 144A. Upon the request of any holder of Registrable
Securities, the Company will deliver to such holder a written statement as to
whether it has complied with the requirements of Rules 144 or 144A under the
Securities Act.

     4. Amendments and Waivers. This Agreement may be amended with the written
consent of the Company and the Company may take any action herein prohibited, or
omit to perform any act herein required to be performed by it, only if the
Company shall have obtained the written consent to such amendment, action or
omission to act, of each holder or holders of the Registrable Securities
affected by such amendment, action or omission to act.

     5. Nominees for Beneficial Owners. In the event that any Registrable
Securities are held by a nominee for the beneficial owner thereof, the
beneficial owner thereof may, at its election in writing delivered to the
Company, be treated as the holder of such Registrable Securities for purposes of
any request or other action by any holder or holders of Registrable Securities
pursuant to this Agreement or any determination of any number or percentage of
shares of Registrable Securities held by any holder or holders of Registrable
Securities contemplated by this Agreement. If the beneficial owner of any
Registrable Securities

                                       12
<PAGE>   15

so elects, the Company may require assurances and evidence reasonably
satisfactory to it of such owner's beneficial ownership of such Registrable
Securities.

     6. Notices. All notices, demands and other communications to any party
hereto provided for or permitted hereunder shall be made in writing and shall be
by registered or certified first-class mail, return receipt requested, telex,
telegram, telecopier, reputable courier service or personal delivery, addressed
to it in the manner set forth on the signature page hereto, or at such other
address as it shall have furnished to the other parties hereto in writing. All
such notices and communications shall be deemed to have been duly given: when
delivered by hand, if personally delivered; one business day after being sent by
reputable courier service; three business days after being deposited in the
mail, postage prepaid, if mailed; when answered back, if telexed; and when
receipt is acknowledged, if telecopied.

     7. Assignment. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and, with respect to the
Company, its respective successors and assigns and, with respect to each other
party hereto, any holder who is an affiliate or successor entity to such party
or a transferee therefrom of any Registrable Securities, subject to the
provisions respecting the minimum numbers of percentages of shares of
Registrable Securities required in order to be entitled to certain rights, or
take certain actions, contained herein. The parties hereto, other than the
Company (and not any other holder of Registrable Securities or any other
Person), shall be permitted, in connection with a transfer or disposition of
Registrable Securities, to eliminate or impose conditions or constraints on the
ability of the transferee, as a holder of Registrable Securities, to request a
registration pursuant to Sections 1.1 and 1.2 and shall provide the Company with
copies of such conditions or constraints and the identity of such transferees.

     8. Calculation of Percentage Interests in Registrable Securities. For
purposes of this Agreement, all references to a percentage of the Registrable
Securities shall be calculated based upon the number of shares of Registrable
Securities outstanding or issuable pursuant to outstanding options (whether or
not presently or then exercisable), warrants or convertible securities at the
time such calculation is made.

     9. No Inconsistent Agreements. The Company will not hereafter enter into
any agreement with respect to its securities which is inconsistent with the
rights granted to the holders of Registrable Securities in this Agreement.

     10. Remedies. Each party hereto and each holder of Registrable securities
is entitled to exercise all rights granted by law, including recovery of
damages; such rights not to extend to incidental or consequential damages.

     11. Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be in any way impaired
thereby, it being intended that all of the rights and privileges of the
Purchaser shall be enforceable to the fullest extent permitted by law.

                                       13

<PAGE>   16
     12. Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement supersedes all prior agreements and understandings
between the Company and any of the Principal Stockholders with respect to the
registration of any Company securities under applicable securities laws.

     13. Descriptive Headings. The descriptive headings of the several sections
and paragraphs of this Agreement are inserted for reference only and shall not
limit or otherwise affect the meaning hereof.

     14. Governing Law. This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Texas applicable to agreements made and to be performed entirely
within such State.

     15. Counterparts; Partial Execution. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all such
counterparts shall together constitute one and the same instrument. This
Agreement shall be fully enforceable against the Company by any Principal
Shareholder who is a signatory hereto regardless of whether any other Principal
Shareholder is also a signatory hereto.

     16. Term. This Agreement shall be effective for the period commencing on
the date hereof and expiring on the date six years from the date hereof.

     17. Supersession of Existing Registration Rights Agreements. This Agreement
supersedes in their entirety any and all currently existing agreements between
the Company and any of the Principal Stockholders with respect to the
registration of any Company securities under applicable securities laws.

         [The remainder of this page has intentionally been left blank]

                                       14
<PAGE>   17

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

                                   FLOTEK INDUSTRIES, INC.

                                   By:
                                      -----------------------------------------
                                        Jerry D. Dumas, Sr., President and CEO

                                   TOSI, L.P.

                                   By:  Pitman Property Corp., a Texas
                                        corporation, General Partner

                                        By:
                                           -------------------------------------
                                             J. W. Beavers, Jr., President

                                   CHISHOLM ENERGY PARTNERS, L.L.C.

                                   By:
                                      -----------------------------------------
                                        John W. Chisholm, Managing Director

                                      -----------------------------------------
                                        William R. Ziegler, an individual

                                      -----------------------------------------
                                        Thomas H. O'Neill, Jr., an individual

                                      -----------------------------------------
                                        James Wadsworth, an individual

<PAGE>   18

                                      -----------------------------------------
                                        Oliver W. Robertson, an individual

                                      -----------------------------------------
                                        Paul Atanasio, an individual

                                      -----------------------------------------
                                        Charles E. Murphy, an individual

                                      -----------------------------------------
                                        John Dalrymple, an individual

                                      Springfield Trading S.A.

                                      By
                                        ---------------------------------------
                                      Name:
                                      Title:

                                      -----------------------------------------
                                        Jeffrey R. Freedman, an individual

                                      -----------------------------------------
                                        Arvind Sanger, an individual

                                      -----------------------------------------
                                        Nancy Naples O'Neill, an individual

<PAGE>   19

                                   -----------------------------------------
                                   Richard H. Jukes, an individual

                                   SMITH FAMILY 1999 PARTNERSHIP
                                   LTD

                                   By:
                                      --------------------------------------
                                             James H. Smith, Co-Trustee

                                   By:
                                      --------------------------------------
                                             Joyce B. Smith, Co-Trustee

                                   HINCKLEY BROOK, INC.

                                   By:
                                      --------------------------------------
                                             Jerry Dumas, President

                                   SAXTON RIVER CORPORATION

                                   By:
                                      --------------------------------------
                                             Jerry Dumas, President

                                   NOW Ventures, LLC

                                   By:
                                      --------------------------------------
                                             Thomas H. O'Neill, Jr., Managing
                                             Member

                                      --------------------------------------
                                             [Tom Bandy], an individual

<PAGE>   20

                                      --------------------------------------
                                             Steven A. Webster, an individual

                                      --------------------------------------
                                             Marlin Investors, L.L.C.

                                      By
                                         --------------------------------------
                                             William R. Ziegler, Managing Member

                                      -----------------------------------------
                                             Charles A. Dickinson, Jr.

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