Document:

Lien Subordination and Intercreditor Agreement

 Exhibit 10.5 
 Execution Version 
  

 
  

LIEN SUBORDINATION AND INTERCREDITOR AGREEMENT 
 dated as of 
 September 23, 2011, 

among 
 PNC BANK,
NATIONAL ASSOCIATION 
 as Credit Facilities Collateral Agent, 

U.S. BANK NATIONAL ASSOCIATION 
 as Note Collateral Agent 
 and 

FLOTEK INDUSTRIES, INC. 
 and the other Grantors named herein 
  

 
  

 LIEN SUBORDINATION AND INTERCREDITOR AGREEMENT dated as of September 23, 2011, between
PNC BANK, NATIONAL ASSOCIATION, as collateral agent for the Credit Facility Secured Parties referred to herein; U.S. BANK NATIONAL ASSOCIATION, as collateral agent for the Note Secured Parties referred to herein; FLOTEK INDUSTRIES, INC.; and the
other Grantors named herein. 
 Reference is made to (a) the Credit Agreement (such term, and each other capitalized term
used and not otherwise defined herein, having the meaning assigned to it in Article I), under which the Lenders referred to therein have extended or in the future will extend credit to the Company and its subsidiaries named therein, and (b) the
Note Indenture, under which the Company issued the Notes. The obligations of the Company and its subsidiaries to the Lenders under the Credit Agreement are secured by liens on and security interests in substantially all of the now existing and
hereafter acquired personal property of the Company and its subsidiaries. The obligations of the Company to the Note Secured Parties under the Notes are secured by liens on and security interests in substantially all of the now existing and
hereafter acquired personal property of the Company. As a condition to Credit Facilities Collateral Agent and the Credit Facilities Secured Parties entering into the Credit Agreement with the Company and certain of its subsidiaries, Credit
Facilities Collateral Agent has required that Note Collateral Agent and the Note Secured Parties subordinate the priority of all of its Liens, security interests and other encumbrances on any assets or properties of the Company or any of its
subsidiaries securing the payment of the Junior Obligations. In consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the Credit Facilities Collateral Agent
(for itself and on behalf of the Credit Facilities Secured Parties), the Note Collateral Agent (for itself and on behalf of the Note Secured Parties), the Company and the subsidiaries of the Company named herein agree as follows: 

ARTICLE I 

Definitions 

SECTION 1.01. Construction; Certain Defined Terms. (a) The definitions of terms herein shall apply equally to the singular
and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed
to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (i) any definition of or
reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified, (ii) any reference herein to any
person shall be construed to include such person’s successors and assigns, but shall not be deemed to include the subsidiaries of such 

  
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person unless express reference is made to such subsidiaries, (iii) the words “herein”, “hereof and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Articles and Sections shall be construed to refer to Articles and Sections of this Agreement and (v) the words
“asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

(b) As used in this Agreement, the following terms have the meanings specified below: 

“Accession Agreement” means an accession agreement in substantially the form of Annex I hereto under which a collateral
agent or similar Representative of Designated Senior Obligations shall become a party hereto and the Designated Senior Obligations Collateral Agent for such Designated Senior Obligations hereunder. 

“Bankruptcy Code” means Title 11 of the U.S. Code. 

“Collateral” means the Credit Facilities Collateral, the Designated Senior Obligations Collateral and the Note
Collateral. 
 “Collateral Agent” means any of the Credit Facilities Collateral Agent, any Designated Senior
Obligations Collateral Agent and the Note Collateral Agent. 
 “Company” means Flotek Industries, Inc., a
Delaware corporation. 
 “Credit Agreement” means the Revolving Credit and Security Agreement dated as of
September 23, 2011, as amended, amended and restated, extended, renewed, replaced, refinanced, supplemented or otherwise modified from time to time, among the Company, certain subsidiaries of the Company, the Lenders party thereto, and PNC
Bank, National Association, as Agent. 
 “Credit Facilities Collateral” means all “Collateral”, as
defined in the Credit Agreement and the Credit Facilities Security Documents, securing any Credit Facilities Obligations, and any other assets or properties of the Company or any subsidiaries of the Company now or at any time hereafter subject to
Liens securing any Credit Facilities Obligations. 
 “Credit Facilities Collateral Agent” means PNC Bank,
National Association, in its capacity as Agent under the Credit Agreement and the Credit Facilities Security Documents, and its successors and assigns in such capacity. 

  
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 “Credit Facilities Obligations” means all “Obligations” as such
term is defined in the Credit Agreement. 
 “Credit Facilities Secured Parties” means, at any time, each person
that is a “Lender” under and as defined in the Credit Agreement. 
 “Credit Facilities Security
Documents” means the Credit Agreement, the Pledge Agreement, the Guarantor Security Agreement, the Intellectual Property Security Agreement, and all other documents now existing or entered into after the date hereof that create Liens on any
assets or properties of the Company or any subsidiaries of the Company to secure any Credit Facilities Obligations.  

“Designated Senior Obligations” means all obligations of the Company or any subsidiaries of the Company that shall have
been designated as such in accordance with Article III. 
 “Designated Senior Obligations Collateral” means any
assets or properties of the Company or any subsidiaries of the Company now or at any time hereafter subject to Liens securing any Designated Senior Obligations. 
 “Designated Senior Obligations Collateral Agent” means, with respect to any Designated Senior Obligations, any collateral agent or similar Representative appointed to act on behalf of the
applicable Designated Senior Obligations Secured Parties with respect to the Designated Senior Obligations Collateral securing such Designated Senior Obligations; provided, that if no such collateral agent or other Representative shall have been so
appointed by the applicable Designated Senior Obligations Secured Parties, then the Designated Senior Obligations Collateral Agent with respect to such Designated Senior Obligations will be deemed to be such Designated Senior Obligations Secured
Parties. 
 “Designated Senior Obligations Governing Documents” means, as to any Designated Senior Obligations,
the credit agreement, note agreement, indenture or other instrument or document under which such Designated Senior Obligations shall have been issued or incurred. 
 “Designated Senior Obligations Secured Parties” means, at any time, each holder of, or obligee in respect of, any Designated Senior Obligations outstanding at such time. 

“Designated Senior Obligations Security Documents” means any documents entered into after the date hereof that create
Liens on any assets or properties of the Company or any subsidiaries of the Company to secure any Designated Senior Obligations. 

  
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 “Discharge of Senior Obligations” means payment in full in cash of the
principal of and interest and premium, if any, on all Obligations (as defined in the Credit Agreement) (or any corresponding definition in any Designated Senior Obligations Governing Documents) constituting Senior Obligations secured by any
Collateral, or, with respect to all Hedge Liabilities under each Lender-Provided Interest Rate Hedge (as such terms are defined in the Credit Agreement) (or any corresponding definition in any Designated Senior Obligations Governing Documents)
constituting Senior Obligations secured by any Collateral, delivery of cash collateral or backstop letters of credit in respect thereof in compliance with the terms of such Senior Obligation, in each case after or concurrently with termination of
all commitments to extend credit thereunder, and payment in full of any other obligations in respect of any Senior Obligation secured by any Collateral that are due and payable or otherwise accrued and owing at or prior to the time such principal,
interest and premium, if any, are paid. 
 “Guarantor Security Agreement” means the Security Agreement, dated
September 23, 2011 among certain subsidiaries of the Company and Credit Facilities Collateral Agent, as amended, amended and restated, extended, renewed, replaced, supplemented or otherwise modified from time to time. 

“Grantor” means the Company and each subsidiary of the Company that shall have created any Senior Lien or Junior Lien on
its assets or properties to secure any Senior Obligations or Note Obligations. 
 “Intellectual Property Security
Agreement” means the Intellectual Property Security Agreement, dated September 23, 2011 among the Company, certain subsidiaries of the Company and Credit Facilities Collateral Agent. 

“Junior Collateral Agent” means the Note Collateral Agent. 

“Junior Liens” means Liens created under Junior Obligations Security Documents securing Junior Obligations. 

“Junior Lien Pledge and Security Agreement” means the Junior Lien Pledge and Security Agreement dated as of
March 31, 2010, among the Company, certain subsidiaries of the Company and the Note Collateral Agent, as amended, amended and restated, extended, renewed, replaced, supplemented or otherwise modified from time to time. 

“Junior Obligations” means the Note Obligations. 

“Junior Obligations Collateral” means the Note Collateral. 

  
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 “Junior Obligations Secured Parties” means the Note Secured Parties.

 “Junior Obligations Security Documents” means the Note Security Documents. 

“Lien” means any pledge, security interest, mortgage or other lien or encumbrance created to secure any indebtedness or
other obligation. 
 “Note Collateral” means the “Collateral”, as defined in the Note Indenture, and
any other assets or properties of the Company or any subsidiaries of the Company now or at any time hereafter subject to Liens securing any Note Obligations. 
 “Note Collateral Agent” means U.S. Bank National Association, in its capacity as Collateral Agent under the Note Indenture and the Note Security Documents, and its successors and assigns
in such capacity. 
 “Note Indenture” means the Indenture dated as of March 31, 2010, among the Company,
as Issuer, the Guarantors (as defined therein) party thereto and U.S. Bank National Association, as Trustee, as amended and supplemented by the First Supplemental Indenture dated as of March 31, 2010 among the Company, as Issuer, the Guarantors
(as defined therein) party thereto and U.S. Bank National Association, as Trustee (the “First Supplemental Note Indenture”) and as further amended, amended and restated, extended, renewed, replaced, supplemented or otherwise
modified from time to time. 
 “Note Obligations” means (a) the due and punctual payment of (i) the
principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Notes, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) all other monetary obligations of the Company or any subsidiaries of the Company to any of the Note Secured Parties under the Note Indenture or any Note
Security Document, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in such proceeding) and (iii) all amounts due under any guarantee of any of the foregoing, including any guarantee contained in the Note Indenture, and (b) the due and punctual
performance of all other obligations of the Company or any subsidiaries of the Company to any of the Note Secured Parties under the Note Indenture or any Note Security Document. 

  
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 “Note Secured Parties” means, at any time, the Trustee, the Note Collateral
Agent and each other holder of, or obligee in respect of, any Note Obligations outstanding at such time. 
 “Note
Security Documents” means the Junior Lien Pledge and Security Agreement, the other “Security Documents”, as defined in the First Supplemental Note Indenture, and any other documents now existing or entered into after the date
hereof that create Liens on any assets or properties of the Company or any subsidiaries of the Company to secure any Note Obligations. 
 “Notes” means up to $36,004,000 aggregate principal amount of the Company’s 5.25% Convertible Senior Secured Notes due 2028, issued on or about the date of this Agreement pursuant to
the Note Indenture, and any other notes issued from time to time under the Note Indenture. 
 “Pledge
Agreement” means the Pledge Agreement, dated as of September 23, 2011, between the Company and the Credit Facilities Collateral Agent, as amended, amended and restated, extended, renewed, replaced, supplemented or otherwise modified
from time to time. 
 “Representative” means (a) in the case of any Credit Facility Obligations, the Agent
under the Credit Agreement or the Credit Facilities Collateral Agent, (b) in the case of the Note Obligations, the Trustee or the Note Collateral Agent, and (c) in the case of any Designated Senior Obligations, any administrative agent,
trustee or similar representative designated pursuant to Article III or the applicable Designated Senior Obligations Collateral Agent. 
 “Secured Parties” means the Credit Facilities Secured Parties, the Designated Senior Obligations Secured Parties and the Note Secured Parties. 

“Senior Collateral Agent” means the Credit Facilities Collateral Agent and each Designated Senior Obligations Collateral
Agent. 
 “Senior Obligations” means the Credit Facilities Obligations and the Designated Senior Obligations.

 “Senior Obligations Collateral” means the Credit Facilities Collateral and the Designated Senior Obligations
Collateral. 
 “Senior Obligations Secured Parties” means the Credit Facilities Secured Parties and the
Designated Senior Obligations Secured Parties. 
 “Senior Obligations Security Documents” means the Credit
Facilities Security Documents and the Designated Senior Obligations Security Documents. 

  
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 “Senior Liens” means Liens created under Senior Obligations Security
Documents securing Senior Obligations. 
 “subsidiary” means, with respect to any Person (the
“parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which are consolidated with those of the parent in the parent’s consolidated financial statements in
accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more
than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held by, or (b) that is, as of such date, otherwise subject to the control by
(through possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ability to exercise voting power, by contract or otherwise), the parent or one or more
subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. 
 ARTICLE II 

Subordination of Junior Liens 
 SECTION 2.01. Subordination of Junior Liens. (a) All Junior Liens in respect of any Collateral are expressly subordinated and made junior in right, priority, operation and effect to any and
all Senior Liens in respect of such Collateral, notwithstanding anything contained in this Agreement, the Note Indenture, any Junior Obligations Security Document or any other agreement or instrument to the contrary, and irrespective of the time,
order or method of creation, attachment or perfection of such Junior Liens and Senior Liens or any defect or deficiency or alleged defect or deficiency in any of the foregoing. 

(b) It is acknowledged that (i) the aggregate amount of the Senior Obligations may be increased as provided in Article III or
through increases in the amounts of the facilities established by the Credit Agreement or the Designated Senior Obligations Governing Documents (subject to the limitations set forth in the Note Indenture), (ii) a portion of the Senior
Obligations consists or may consist of Indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed and (iii) the Senior
Obligations may be extended, renewed or otherwise amended or modified, or secured with additional Collateral, from time to time, all without affecting the subordination of the Junior Liens hereunder or the provisions of this Agreement defining the
relative rights of the Senior Obligations Secured Parties and the Junior Obligations Secured Parties. The lien priorities provided for herein shall not be altered or 

  
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otherwise affected by any amendment, modification, supplement, extension, increase, replacement, renewal, restatement or refinancing of either the Junior Obligations or the Senior Obligations, by
the securing of any Senior Obligations with any additional Collateral or guarantees, by the release of any Collateral or Guarantees securing any Senior Obligations, by the failure of any person to comply with any provision of this Agreement or any
agreement evidencing, governing or securing any Senior Obligation or Junior Obligation or by any action that any Collateral Agent or Secured Party may take or fail to take in respect of any Collateral. 

(c) It is further acknowledged that the holders of Senior Obligations of one or more classes may from time to time hereafter enter into
agreements establishing the relative priorities of such classes of Senior Obligations or of the Senior Liens securing the same. It is agreed that the relative priorities of classes of Senior Obligations shall be governed by the foregoing agreements
or, to the extent not determined by such agreements, by applicable law, and that nothing in this Agreement shall affect such relative priorities of classes of Senior Obligations or the related Senior Liens. It is further agreed that no agreements
establishing the relative priorities of Senior Obligations of one or more classes or of the Senior Liens securing such Senior Obligations shall in any way limit or affect the subordination of the Junior Liens provided for in this Agreement or the
provisions of this Agreement defining the relative rights of the Senior Obligations Secured Parties and the Junior Obligations Secured Parties. 
 (d) It is further acknowledged that (subject to the limitations set forth in the Note Indenture) the Senior Obligations are or may in the future be secured by Liens on collateral other than the Collateral
subject to the Junior Liens. It is agreed that no Senior Collateral Agent will have any obligation to proceed against any such other collateral securing the Senior Obligations or to exercise any other remedies available to them as a condition to
obtaining the benefits of this Article II. 
 (e) The Note Collateral Agent confirms that the Note Indenture and the Note
Security Documents contain provisions substantially to the effect set forth in Annex II hereto under which the Note Secured Parties agree to, and subject their rights to the provisions of, this Agreement. 

SECTION 2.02. No Action With Respect to Junior Obligations Collateral Subject to Senior Liens. No Junior Collateral Agent or other
Junior Obligations Secured Party shall commence or instruct the Junior Collateral Agent to commence any judicial or nonjudicial foreclosure proceedings with respect to, seek to have a trustee, receiver, liquidator or similar official appointed for
or over, attempt any action to take possession of, exercise any right, remedy or power with respect to, or otherwise take any action to enforce its interest in or realize upon, or take any other action available to it in respect of, any Junior
Obligations Collateral under any Junior Obligations Security Document, applicable law or otherwise, at any time when such Junior Obligations Collateral shall be subject to any Senior Lien and prior to the Discharge

  
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of Senior Obligations, it being agreed that only the applicable Senior Collateral Agent, acting in accordance with the applicable Senior Obligations Security Documents, shall be entitled to take
any such actions or exercise any such remedies. Notwithstanding the foregoing or anything to the contrary provided in Section 2.06, the Junior Collateral Agent may, subject to Section 2.05, (i) take all such actions as it shall deem
necessary to continue the perfection of the Junior Liens on any Junior Obligations Collateral, (ii) file a claim or statement of interest with respect to the Junior Obligations in any bankruptcy, insolvency or similar proceeding or
(iii) take any other action not adverse to the Senior Liens in order to preserve or protect its rights in the Junior Liens on the Collateral for the benefit of the Junior Obligations Secured Parties. 

SECTION 2.03. No Duties of Senior Collateral Agents. Each Junior Obligations Secured Party acknowledges and agrees that no Senior
Collateral Agent or other Senior Obligations Secured Party shall have any duties or other obligations to such Junior Obligations Secured Party with respect to any Senior Obligations Collateral, other than to transfer to the Junior Collateral Agent
any proceeds of any such Collateral that constitutes Junior Obligations Collateral remaining in its possession following any sale, transfer or other disposition of such Collateral and the Discharge of Senior Obligations, or, if any Senior Collateral
Agent shall be in possession of all or any part of such Collateral after the Discharge of Senior Obligations, such Collateral or any part thereof remaining, in each case without representation or warranty on the part of such Senior Collateral Agent
or any Senior Obligations Secured Party (it being understood that nothing herein shall prohibit any Senior Collateral Agent from transferring Collateral or proceeds of Collateral to the holders of other Senior Obligations secured by such Collateral
or to another Senior Collateral Agent acting on their behalf to the extent it is required to do so under the terms of any agreement). In furtherance of the foregoing, each Junior Obligations Secured Party acknowledges and agrees that until the
Discharge of Senior Obligations, the applicable Senior Collateral Agents shall be entitled, for the benefit of the holders of such Senior Obligations, to sell, transfer or otherwise dispose of or deal with such Collateral as provided herein and in
the Credit Facilities Security Documents or the Designated Senior Obligations Security Documents, as the case may be, without regard to any Junior Lien or any rights to which the holders of the Junior Obligations would otherwise be entitled as a
result of such Junior Lien. Without limiting the foregoing, each Junior Obligations Secured Party agrees that no Senior Collateral Agent or other Senior Obligations Secured Party shall have any duty or obligation first to marshall or realize upon
any type of Collateral (or any other collateral securing the Senior Obligations), or to sell, dispose of or otherwise liquidate all or any portion of the Collateral (or any other collateral securing the Senior Obligations), in any manner that would
maximize the return to the Junior Obligations Secured Parties, notwithstanding that the order and timing of any such realization, sale, disposition or liquidation may affect the amount of proceeds actually received by the Junior Obligations Secured
Parties from such realization, sale, disposition or liquidation. Each of the Junior Obligations Secured Parties waives any claim such Junior Obligations Secured Party may now or hereafter have against any Senior Collateral Agent

  
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or other Senior Obligations Secured Party (or their representatives) arising out of (i) any actions which any Senior Collateral Agent or the Senior Obligations Secured Parties take or omit
to take (including, without limitation, actions with respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any of
the Collateral and actions with respect to the collection of any claim for all or any part of the Senior Obligations from any account debtor, guarantor or any other party) in accordance with the respective Senior Obligations Security Documents or
any other agreement related thereto or to the collection of the Senior Obligations or the valuation, use, protection or release of any security for the Senior Obligations, (ii) any election by any Senior Collateral Agent or Senior Obligations
Secured Parties, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b) of the Bankruptcy Code and/or (iii) any borrowing of any Grantor as debtor-in-possession, or any related grant of a security
interest or administrative expense priority under Section 364 of the Bankruptcy Code. 
 SECTION 2.04. No Interference;
Payment Over; Reinstatement. (a) Each Junior Obligations Secured Party agrees that (i) it will not take or cause to be taken any action the purpose or effect of which is, or could be, to make any Junior Lien pari passu with, or to give
such Junior Obligations Secured Party any preference or priority relative to, any Senior Lien with respect to the Collateral subject to such Junior Lien or any part thereof, (ii) it will not challenge or question in any proceeding the validity
or enforceability of any Senior Obligations or Senior Obligations Security Document, or the validity, attachment, perfection or priority of any Senior Lien, or the validity or enforceability of the priorities, rights or duties established by or
other provisions of this Agreement, (iii) it will not interfere, hinder or delay, in any manner, whether by judicial proceedings or otherwise, any sale, transfer or other disposition of the Collateral subject to such Junior Lien by any holders
of Senior Obligations secured by such Collateral or any Senior Collateral Agent acting on their behalf, (iv) it shall have no right to (A) direct any Senior Collateral Agent or any holder of Senior Obligations to exercise any right, remedy
or power with respect to the Collateral subject to any Junior Lien or (B) consent to the exercise by any Senior Collateral Agent or any holder of Senior Obligations of any right, remedy or power with respect to the Collateral subject to any
Junior Lien, (v) it will not institute any suit or assert in any suit, bankruptcy, insolvency or other proceeding any claim against any Senior Collateral Agent or any holder of Senior Obligations seeking damages from or other relief by way of
specific performance, instructions or otherwise with respect to, and neither any Senior Collateral Agent nor any holder of Senior Obligations shall be liable for, any action taken or omitted to be taken by such Senior Collateral Agent or any such
holder of Senior Obligations with respect to any Collateral securing such Senior Obligations that is subject to any Junior Lien, (vi) it will not seek, and hereby waives any right, to have any Senior Obligations Collateral subject to any Junior
Lien or any part thereof marshaled upon any foreclosure or other disposition of such Collateral and (vii) it will not attempt, directly or indirectly, whether by judicial proceedings or otherwise, to challenge the enforceability of any
provision of this Agreement. 

  
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 (b) The Junior Collateral Agent and each other Junior Obligations Secured Party hereby
agrees that if it shall obtain possession of any Senior Obligations Collateral, or shall realize any proceeds or payment in respect of any such Collateral, whether pursuant to any Junior Obligations Security Document or by the exercise of any rights
available to it under applicable law or in any bankruptcy, insolvency or similar proceeding or otherwise, at any time prior to the Discharge of Senior Obligations, then it shall hold such Collateral, proceeds or payment in trust for the applicable
Senior Obligations Secured Parties and transfer such Collateral, proceeds or payment, as the case may be, to the applicable Senior Collateral Agent. Each Junior Obligations Secured Party agrees that if, at any time, all or part of any payment with
respect to any Senior Obligations previously made shall be rescinded for any reason whatsoever, such Junior Obligations Secured Party shall promptly pay over to the applicable Senior Collateral Agent any payment received by it in respect of any
Collateral subject to any Senior Lien securing such Senior Obligations and shall promptly turn any Collateral subject to any such Senior Lien then held by it over to the applicable Senior Collateral Agent, and the provisions set forth in this
Agreement shall be reinstated as if such payment had not been made, until the Discharge of Senior Obligations. 
 SECTION 2.05.
Automatic Release of Junior Liens. The Junior Collateral Agent and each other Junior Obligations Secured Party agrees that, in the event of a sale, transfer or other disposition of Senior Obligations Collateral subject to any Junior Lien to a
person or entity that is not the Company or a subsidiary of the Company, such Junior Lien on such Collateral (but not on the proceeds thereof, except to the extent such proceeds are applied to repay any Senior Obligations) shall terminate and be
released automatically and without further action if the applicable Senior Liens on such Collateral are released. Each Junior Collateral Agent agrees to execute and deliver all such releases and other instruments as shall reasonably be requested by
any applicable Senior Collateral Agent to evidence and confirm any release of Junior Obligations Collateral provided for in this Section. 
 SECTION 2.06. Certain Agreements With Respect to Bankruptcy or Insolvency Proceedings. In the event a proceeding under the Bankruptcy Code or any other Federal, state or foreign bankruptcy,
insolvency, receivership or similar law shall be commenced by or against any Grantor, each Junior Collateral Agent and the other Junior Obligations Secured Parties shall not, prior to the Discharge of Senior Obligations, (a) seek in respect of
any part of the Collateral or proceeds thereof or any Lien which may exist thereon any relief from or modification of the automatic stay as provided in Section 362 of the Bankruptcy Code or seek or accept any form of adequate protection under
either or both Sections 362 and 363 of the Bankruptcy Code with respect thereto except replacement liens junior to the Senior Liens and the accrual (but not the 

  
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current payment) of interest and the current payment of out-of-pocket expenses, including fees and disbursements of counsel and other professional advisors, incurred by the Junior Collateral
Agents (which the Junior Obligations Secured Parties agree will constitute adequate protection of their claims and interests), (b) oppose or object to any adequate protection sought by or granted to any Senior Obligations Secured Party in
connection with the use of cash collateral or post-petition financing under Section 362, 363 or 364 of the Bankruptcy Code, (c) oppose or object to the use of cash collateral by a Grantor, (d) oppose or object to any post-petition
financing (including any debtor-in-possession financing) provided by any of the Senior Obligations Secured Parties or provided by a third party pursuant to Section 364 of the Bankruptcy Code (including on a priming basis), (e) oppose or
object to or withhold consent from the disposition of assets by any Grantor under Section 363(b) or (f) of the Bankruptcy Code, (f) oppose, object to, or vote against any plan of reorganization or disclosure statement the terms of
which are consistent with the rights of the Senior Obligations Secured Parties under the Senior Obligations Security Documents and the rights of the Senior Obligations Secured Parties and the Junior Obligations Secured Parties under this Agreement,
(g) make an election pursuant to Section 1111(b) of the Bankruptcy Code or oppose any election pursuant to Section 1111(b) by any Senior Obligations Secured Parties, (h) oppose or object to the determination of the extent of any
Liens held by any of the Senior Obligations Secured Parties or the value of any claims of Senior Obligations Secured Parties under Section 506(a) of the Bankruptcy Code, or (i) oppose or object to the payment of interest and expenses as
provided under Sections 506(b) and (c) of the Bankruptcy Code to any Senior Obligations Secured Parties. In any proceeding described in this Section, until the Discharge of Senior Obligations, each Junior Obligations Secured Party hereby
authorizes and empowers (without imposing an obligation on) the holders of such Senior Obligations or any Senior Collateral Agent or other Representative acting on their behalf to vote such Junior Obligations Secured Party’s share of the Junior
Obligations secured by such Junior Lien, insofar as any such voting right arises from or relates to such Junior Lien or to the Collateral subject thereto, in connection with any resolution, arrangement, plan of reorganization, compromise or
settlement relating to such Collateral, so long as the proposal is consistent with the rights of the Senior Obligations Secured Parties under the Senior Obligations Security Documents and the rights of the Senior Obligations Secured Parties and the
Junior Obligations Secured Parties under this Agreement. Notwithstanding the foregoing, any Junior Collateral Agent may take the actions contemplated by the last sentence of Section 2.02 hereof. 

SECTION 2.07. Reinstatement. In the event that any of the Senior Obligations shall be paid in full and such payment or any part
thereof shall subsequently, for whatever reason (including, but not limited to, an order or judgment for disgorgement of a preference under Title 11 of the United Stated Code, or any similar law, or the settlement of any claim in respect thereof),
be required to be returned or repaid, the terms and conditions of this Article II shall be fully applicable thereto until all such Senior Obligations shall again have been paid in full in cash. 

  
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 ARTICLE III 
 Designated Senior Obligations 
 SECTION 3.01. Designation. The Company may
from time to time, subject to any limitations contained in the Credit Agreement, any then existing Designated Senior Obligations Governing Documents and the Note Indenture, designate additional obligations that are, or are to be, secured by Liens on
any assets or properties of the Company or any subsidiaries of the Company as Designated Senior Obligations by delivering to each Collateral Agent a notice: 
 (i) describing the obligations being designated as Designated Senior Obligations, and including a statement of the maximum aggregate outstanding principal amount of such obligations; 

(ii) listing the Designated Senior Obligations Governing Documents under which such Designated Senior Obligations are issued or incurred
and the Designated Senior Obligations Security Documents securing such Designated Senior Obligations, and attaching copies of such Designated Senior Obligations Governing Documents and Designated Senior Obligations Security Documents; 

(iii) identifying the Designated Senior Obligations Collateral Agent with respect to such Designated Senior Obligations, and any other
Representative of the holders of such Designated Senior Obligations; 
 (iv) certifying that the incurrence of such Designated
Senior Obligations, the creation of the Liens securing such Designated Senior Obligations and the designation of such Designated Senior Obligations as Designated Senior Obligations hereunder do not violate or result in a default under any provision
of any Credit Agreement, any then existing Designated Senior Obligations Governing Document or the Note Indenture; 
 (v)
certifying that the Designated Senior Obligations Governing Document governing such Designated Senior Obligations contains provisions under which the related Designated Senior Obligations Secured Parties agree, or are deemed to agree, to be bound by
the provisions of this Agreement; and 
 (vi) attaching a fully executed Accession Agreement under which the Designated Senior
Obligations Collateral Agent with respect to such Designated Senior Obligations shall become a party to and a Collateral Agent under this Agreement (unless such Designated Senior Obligations Collateral Agent shall already be a party hereto).

  
 13 

 Upon the delivery of such notice and the related attachments as provided above, the
obligations designated in such notice shall become Designated Senior Obligations for all purposes of this Agreement. Notwithstanding any other provision contained in this Section or elsewhere in this Agreement, no obligation shall constitute a
Designated Senior Obligation if the incurrence of such obligation, the creation of the Liens securing such obligation or the designation of such obligation as a Designated Senior Obligation hereunder would violate or result in a default under any
provision of any Credit Agreement, any existing Designated Senior Obligations Governing Document or the Note Indenture. 
 Each
Senior Collateral Agent agrees that if it shall at any time hold a Senior Lien on any Junior Obligations Collateral that can be perfected by the possession or control of such Collateral or of any account in which such Collateral is held, and if such
Collateral or any such account is in fact in the possession or under the control of such Senior Collateral Agent, such Senior Collateral Agent will serve as sub-agent for each Junior Collateral Agent for the sole purpose of perfecting the Junior
Lien of such Junior Collateral Agent in such Collateral. It is agreed that the obligations of the applicable Senior Collateral Agent and the rights of the Junior Collateral Agents and the other Junior Secured Parties in connection with any such
sub-agency arrangement will be in all respects subject to the provisions of Article II. The Senior Collateral Agent will be deemed to make no representation as to the adequacy of the steps taken by it to perfect the Junior Lien on any such
Collateral and shall have no responsibility to any Junior Collateral Agent or other Junior Secured Party for such perfection, it being understood that the sole purpose of this Article is to enable the Junior Secured Parties to obtain a perfected
Junior Lien in such Collateral to the extent, if any, that such perfection results from the possession or control of such Collateral or any such account by the Senior Collateral Agent. Upon the Discharge of Senior Obligations with respect to Senior
Obligations secured by the Senior Lien of any Senior Collateral Agent, such Senior Collateral Agent shall take all such actions in its power as shall reasonably be requested by the Junior Collateral Agent to transfer possession or control of such
Collateral or any such account to the Junior Collateral Agent; provided, that if any such Collateral or any such account shall be subject to any other Senior Lien, then such Senior Collateral Agent shall instead transfer such possession or control
of such Collateral or such account to the Senior Collateral Agent holding such Senior Lien. The Junior Collateral Agent agrees that if it shall obtain possession or control of any Collateral or any account pursuant to the foregoing provisions and
such Collateral or account shall thereafter become subject to any Senior Lien, it will take all such actions in its power as shall reasonably be requested by the Senior Collateral Agent holding such Senior Lien to transfer possession or control of
such Collateral or such account to such Senior Collateral Agent. 

  
 14 

 ARTICLE V 
 Existence and Amounts of Liens and Obligations 
 Whenever any Collateral Agent
shall be required, in connection with the exercise of its rights or the performance of its obligations hereunder, to determine the existence or amount of any Senior Obligations or Junior Obligations, or the existence of any Lien securing any such
obligations, or the Collateral subject to any such Lien, it may request that such information be furnished to it in writing by the Representative of such Senior Obligations or Junior Obligations and shall be entitled to make such determination on
the basis of the information so furnished; provided, however, that if, notwithstanding the request of such Collateral Agent, such Representative shall fail or refuse reasonably promptly to provide the requested information, such Collateral Agent
shall be entitled to determine such existence or amount by such method as it may, in the exercise of its good faith judgment, determine, including by reliance upon a certificate of the Company. Each Collateral Agent may rely conclusively, and shall
be fully protected in so relying, on any determination made by it in accordance with the provisions of the preceding sentence (or as otherwise directed by a court of competent jurisdiction) and shall have no liability to the Company or any of its
subsidiaries, any Secured Party or any other person as a result of such determination. 
 ARTICLE VI 

Consent of Grantors 
 Each Grantor hereby consents to the provisions of this Agreement and the intercreditor arrangements provided for herein and agrees (a) that no Collateral Agent or other Secured Party shall have any
liability to any Grantor as a result of the performance of its obligations hereunder and (b) that the obligations of the Grantors under the Senior Obligations Security Documents will in no way be diminished or otherwise affected by the
provisions or arrangements provided for herein. Each Grantor also hereby confirms its respective guarantees, pledges and grants of security interests, as applicable, under each of the Credit Facilities Security Documents to which it is a party, and
agrees that, notwithstanding the effectiveness of the Note Security Documents, such guarantees, pledges and grants of security interests shall continue to be in full force and effect and shall accrue to the benefit of the Credit Facilities Secured
Parties. 

  
 15 

 ARTICLE VII 
 Representations and Warranties 
 SECTION 7.01. Representations and Warranties
of Each Party. Each party hereto represents and warrants to the other parties hereto as follows: 
 (a) Such party is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to enter into and perform its obligations under this Agreement. 

(b) This Agreement has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such
party, enforceable in accordance with its terms. 
 (c) The execution, delivery and performance by such party of this Agreement
(i) do not require any consent or approval of, registration or filing with or any other action by any governmental authority and (ii) will not violate any applicable law or regulation or the charter, by-laws or other organizational
documents of such party or any order of any governmental authority or any indenture, agreement or other instrument binding upon such party. 
 SECTION 7.02. Representations and Warranties of Each Collateral Agent. Each Collateral Agent represents and warrants to the other parties hereto that it has been authorized by the Secured Parties
for which it serves as collateral agent (or, in the case of the Credit Facilities Collateral Agent, by the Required Lenders under and as defined in each Credit Agreement) to enter into this Agreement. 

ARTICLE VIII 

Miscellaneous 

SECTION 8.01. Notices. All notices and other communications provided for herein shall be in writing and shall be delivered by hand
or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 
 (a) if to the Credit
Facilities Collateral Agent, to PNC Bank, National Association, Two Tower Center Boulevard, East Brunswick, New Jersey 08816, Attention: Josephine Griffin (Josephine.griffin@pnc.com), with copies to (i) PNC Bank, National Association, 2100 Ross
Avenue, Suite 1850, Dallas, Texas 75201, Attention: Anita Inkollu (anita.inkollu@pnc.com) and (ii) Patton Boggs LLP, 2000 McKinney Avenue, Suite 1700, Dallas, Texas 75201, Attention: Anthony J. Herrera (aherrera@pattonboggs.com); 

  
 16 

 (b) if to the Note Collateral Agent, to U.S. Bank National Association, 5555 San Felipe
Street, Suite 1150, Houston, TX 77056, Attention: Corporate Trust Services (steven.finklea@usbank.com); 
 (c) if to any
Designated Senior Obligations Collateral Agent, to it at the address or telecopy number specified in the applicable Accession Agreement; and 
 (d) if to the Company, to it at Flotek Industries, Inc., 2930 W. Sam Houston Parkway North, Suite 300, Houston, Texas 77043, Attention of Jempy Neyman (jneyman@flotekind.com). 

Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties
hereto (and for this purpose a notice to the Company shall be deemed to be a notice to each Grantor). All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt. 
 SECTION 8.02. Waivers; Amendment. (a) No failure or delay on the part of any party
hereto in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereto are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or consent to any departure by any party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice or demand on any party hereto in any case shall entitle such party to any other or further notice or demand in similar or other circumstances. 

(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by each Collateral Agent and the Company. 
 SECTION 8.03. Parties in Interest. This Agreement shall
be binding upon and inure to the benefit of the parties hereto (including any Designated Senior Obligations Collateral Agents becoming parties hereto as provided in Section 8.04) and their respective successors and assigns, as well as the other
Credit Facilities Secured Parties, Note Secured Parties and Designated Senior Obligations Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this Agreement. 

  
 17 

 SECTION 8.04. Accession of Designated Senior Obligations Collateral Agents. Upon the
execution and delivery by the collateral agent or similar Representative of any Designated Senior Obligations of an Accession Agreement as provided in Article III, such collateral agent or Representative shall become a party to this Agreement as the
Designated Senior Obligations Collateral Agent for such Designated Senior Obligations and shall thenceforth have all the rights and obligations applicable to it in such capacity hereunder. 

SECTION 8.05. Survival of Agreement. All covenants, agreements, representations and warranties made by any party in this Agreement
shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement. 
 SECTION 8.06. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single contract.
Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. 
 SECTION 8.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision
in any other jurisdiction. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions. 
 SECTION 8.08. Governing Law; Jurisdiction; Consent to Service of Process.
(a) This Agreement shall be construed in accordance with and governed by the law of the State of New York. 
 (b) Each
party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York state or federal court sitting in New York, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may
be heard and determined in such New York state or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in 

  
 18 

 
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect
any right that any party hereto may otherwise have to bring any action or proceeding relating to this Agreement in the courts of any jurisdiction. 
 (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of
an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 (d) Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices in Section 8.01. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 

SECTION 8.09. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 SECTION 8.10. Specific Performance. Each party hereto
(a) agrees that any other party hereto may demand specific performance of this Agreement and (b) irrevocably waives any defense based on the adequacy of a remedy at law, and any other defense, that might be asserted in opposition to the
awarding of specific performance in any action that may be brought by any other party hereto. 
 SECTION 8.11. Headings.
Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 [Signature Pages Follow] 

  
 19 

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

			
	PNC BANK, NATIONAL ASSOCIATION,
	as Credit Facilities Collateral Agent
		
	By	 	 /s/    Anita Inkollu

	Name:	 	Anita Inkollu
	Title:	 	Vice President

  

[SIGNATURE PAGE TO LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT] 

 
			
	U.S. BANK NATIONAL ASSOCIATION,
	as Note Collateral Agent
		
	By	 	 /s/    Steven A. Finklea

	Name:	 	 Steven A. Finklea, CCTS

	Title:	 	 Vice President

  

[SIGNATURE PAGE TO LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT] 

 
			
	GRANTORS:
	
	FLOTEK INDUSTRIES, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 EVP, Finance

	
	TELEDRIFT COMPANY
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	FLOTEK PAYMASTER, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	MATERIAL TRANSLOGISTICS, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	PETROVALVE, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

  

[SIGNATURE PAGE TO LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT] 

 
			
	TURBECO, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	USA PETROVALVE, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	FLOTEK INTERNATIONAL, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	PADKO INTERNATIONAL INCORPORATED
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	FLOTEK ECUADOR MANAGEMENT, LLC
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

  

[SIGNATURE PAGE TO LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT] 

 
			
	FLOTEK ECUADOR INVESTMENTS, LLC
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	SOONER ENERGY SERVICES, LLC
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	CESI MANUFACTURING, LLC
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	CESI CHEMICAL, INC.
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

	
	FLOTEK INDUSTRIES FZE
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 CFO

  

[SIGNATURE PAGE TO LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT] 

 
			
	FLOTEKCHEMICAL ECUADOR CIA. LTDA
		
	By	 	 /s/    Jesse E. Neyman

	Name:	 	 Jesse E. Neyman

	Title:	 	 VP

  

[SIGNATURE PAGE TO LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT] 

 ANNEX I 
 ACCESSION AGREEMENT dated as of [    ], between [Representative] (the “Representative”) and FLOTEK INDUSTRIES, INC. (the “Company”). 

A. Reference is made to the Lien Subordination and Intercreditor Agreement dated as of September 23, 2011 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), among PNC Bank, National Association, as Credit Facilities Collateral Agent, U.S. Bank National Association, as Note Collateral Agent, Flotek
Industries, Inc., the other Grantors named therein and the other Designated Senior Obligations Collateral Agents from time to time party thereto. 
 B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Intercreditor Agreement. 

C. The Representative desires to become a Designated Senior Obligations Collateral Agent under the Intercreditor Agreement. 

Accordingly, the Company and the Representative agree as follows: 

SECTION 1. Accession to Intercreditor Agreement. Upon the execution of this Accession Agreement by the Representative and the
Company and as of the date of the delivery of this Accession Agreement to each Collateral Agent under the Intercreditor Agreement as part of the notice required pursuant to Section 3.01 of the Intercreditor Agreement, the Representative hereby
accedes to the Intercreditor Agreement and shall thereafter be a party to and be bound by the provisions of the Intercreditor Agreement and have all the rights and obligations of a Designated Senior Obligations Collateral Agent with respect to the
Designated Senior Obligations described in the notice required pursuant to Section 3.01 of the Intercreditor Agreement (of which this Accession Agreement forms a part). 
 SECTION 2. Notices. All notices and other communications provided for in the Intercreditor Agreement shall be given to the Representative as follows: 

[Address] 

[Telecopy Number] 
 SECTION 3. Counterparts. This Accession Agreement may be executed in multiple counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single
agreement. Delivery of an executed signature page to this Accession Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Accession Agreement. 

  
 I-1

 SECTION 4. Governing Law. This Agreement shall be construed in accordance with and
governed by the law of the State of New York. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first above written. 
  

			
	[Name of Representative],
		
	By	 	  

	Name:	 	
	Title:	 	
	
	FLOTEK INDUSTRIES, INC.
		
	By	 	  

	Name:	 	
	Title:	 	
		 	

  
 I-2

 ANNEX II 
 Provision for Junior Obligations Governing Document 
 Reference is made to the
Lien Subordination and Intercreditor Agreement dated as of September 23, 2011, among PNC Bank, National Association, as collateral agent for the Credit Facility Secured Parties referred to therein; U.S. Bank National Association, as collateral
agent for the Note Secured Parties referred to therein; Flotek Industries, Inc.; the other Grantors named therein; and the Designated Senior Obligations Collateral Agents becoming parties thereto from time to time (the “Intercreditor
Agreement”). Each [holder of Junior Obligations] (a) [hereby consents] [will be deemed to have consented] to the subordination of the [Liens securing the Junior Obligations] on the terms set forth in the Intercreditor Agreement,
(b) [hereby agrees] [will be deemed to have agreed] that it will be bound by and will take no actions contrary to the provisions of the Intercreditor Agreement and (c) [hereby authorizes and instructs] [will be deemed to have authorized
and instructed] the [Junior Obligations Collateral Agent] to enter into the Intercreditor Agreement and to subject the [Junior Obligations] and the [Liens securing the Junior Obligations] to the provisions thereof. The foregoing provisions are
intended as an inducement to the Senior Obligations Secured Parties (as defined in the Intercreditor Agreement) to extend credit to Flotek Industries, Inc., and such Senior Obligations Secured Parties are intended third party beneficiaries of such
provisions and the provisions of the Intercreditor Agreement. 
 Provision for Junior Obligations Security Document 

Reference is made to the Lien Subordination and Intercreditor Agreement dated as of September 23, 2011, among PNC Bank, National
Association, as collateral agent for the Credit Facility Secured Parties referred to therein; U.S. Bank National Association, as collateral agent for the Note Secured Parties referred to therein; Flotek Industries, Inc.; the other Grantors named
therein; and the Designated Senior Obligations Collateral Agents becoming parties thereto from time to time (the “Intercreditor Agreement”). Notwithstanding any other provision contained herein, this Agreement, the Liens created hereby and
the rights, remedies, duties and obligations provided for herein are subject in all respects to the provisions of the Intercreditor Agreement and, to the extent provided therein, the Senior Obligations Security Documents (as defined in the
Intercreditor Agreement). In the event of any conflict or inconsistency between the provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall control. 

  
 II-1EX-10.1

 Exhibit 10.1 
 September 22, 2011 
 David J. LaRue 
 Forest City Enterprises, Inc. 
 50 Public Square 

Terminal Tower, Suite 1100 
 Cleveland, Ohio
44113 
  

	Re:	 Employment Agreement 

 Dear David: 
 This letter is to affirm our intent to have you
serve as President and Chief Executive Officer of Forest City Enterprises, Inc. (the “Company”) and to confirm the terms and conditions of our agreement. It is our intent to structure this agreement in a manner that meets our mutual
objectives and sets the foundation for a long and fulfilling relationship. The following letter agreement (the “Agreement”) outlines the terms and conditions of your employment. 

1. Employment 
 The Company agrees to employ you and you agree to continue such employment with the Company, upon the terms and subject to the conditions set forth in this Agreement, for the period beginning on
June 10, 2011 (the “Effective Date”) and ending on the earlier of (i) the Date of Termination (as defined below), or (ii) the third anniversary of the Effective Date. Unless terminated prior to such date, the Term
shall be automatically renewed for successive one-year periods on the terms and subject to the conditions of this Agreement, commencing on the third anniversary of the Commencement Date and on each anniversary date thereafter, unless either the
Company or you gives the other party written notice, at least 180 days prior to the end of such initial or extended Term, of its or your intention not to renew this Agreement or your employment. Any reference to the “Term” of this
Agreement shall include the original term and any extension. 
 2. Position and Duties 

You will be employed by the Company as President and Chief Executive Officer, and you agree to serve on the Board of
Directors at its discretion and subject to re-election by the shareholders. You will be responsible for the general management of the affairs of the Company and shall perform all duties incidental to such positions which may be required by the Board
of Directors. You will report directly to the Board of Directors. During the Term, you shall perform your duties faithfully, honestly, diligently and conscientiously subject to the reasonable and lawful directions of the Board of Directors, and in
accordance with the Company’s Articles of Incorporation, Code of Regulations and Code of Legal and Ethical Conduct, as all are amended, and the policies, rules and decisions adopted from time to time by the Company and the Board

 of Directors. You acknowledge and agree to comply with the Company’s
stock ownership guidelines applicable to your position, as the same may be amended from time to time. 
 3.
Compensation and Benefits 
  

	 	a)	 Base Salary. During the Term, the Company will pay you an annualized base salary (“Annual Base Salary”) at a rate of not
less than Six Hundred Thousand Dollars ($600,000), payable in regular installments in accordance with the Company’s customary payroll practices. During the Term, the Annual Base Salary shall be reviewed by the Compensation Committee, and
adjusted, based upon your performance and the Company’s performance and competitive with industry standards. 

  

	 	b)	 Bonus. For each fiscal year during the Term, you will participate in the Company’s Short-Term Incentive Plan (the
“STIP”) and the Long-Term Incentive Plan (the “LTIP”) under terms and conditions established by the Board of Directors or the Compensation Committee from time to time. 

 

	 	c)	 Vacation and Benefits. During the Term, you will participate in the Company’s paid time-off program and other Company benefits
consistent with the Company’s policies for its executive offers, including but not limited to all such benefits disclosed in the Company’s proxy statement filed in 2011, as may be in effect from time to time. 

4. Termination of Employment 
  

	 	a)	 Death and Disability. Your employment will terminate automatically upon the date of your death. If the Company determines in good faith that
your Disability has occurred during the Term (as defined below), it may give to you written notice of its intention to terminate your employment; provided that such notice is provided no later than 180 days following your first day of Disability. In
such event, your employment will terminate effective on the 30th day after receipt of such notice by you (the “Disability Effective Date”), provided that, within the 30 days after such receipt, you shall not have returned to
full-time performance of your duties. For purposes of this Agreement, “Disability” shall mean the inability of you to perform the essential duties of the position held by you by reason of any medically determined physical or mental
impairment that lasts for 150 consecutive days in any one-year period, all as determined by an independent licensed physician mutually acceptable to the Company and you or your legal representative. 

 

	 	b)	 Cause. Your employment with the Company may be terminated with or without Cause. For purposes of this Agreement, “Cause”
shall mean: (i) your conviction, a guilty plea or plea of nolo contendere by you for (x) any crime involving dishonesty with respect to the Company, or (y) any felony; or (ii) a material breach by you of the Company’s
Code of Legal and Ethical Conduct or other written Company 

  
 2 

	 	 
policies, your obligations under this Agreement, or any laws material to the conduct of the Company’s business. The cessation of your employment will not be deemed to be for Cause unless and
until (A) there shall have been delivered to you a copy of a resolution duly adopted by majority vote of the Compensation Committee (after reasonable notice is provided to you that specifically identifies the manner and sets forth the specific
acts of which the Compensation Committee believes that you may be guilty of the conduct described in subparagraph (i) through and including (ii), and you are given an opportunity, together with counsel, to be heard before the Compensation
Committee), finding that, in the good faith opinion of the majority of the Compensation Committee, you are guilty of the conduct described in subparagraph (i) through and including (ii) above, and (B) you shall fail to cure such
conduct (if curable) within a reasonable time period established by the Compensation Committee of not less than thirty (30) calendar days after your receipt of such notice. 

 

	 	c)	 Good Reason. Your employment with the Company may be terminated by you with or without Good Reason. For purposes of this Agreement,
“Good Reason” shall mean any of the following without your consent: (i) a material reduction by the Company of your duties or responsibilities set forth in Section 2, including any change in your officer status;
(ii) a material reduction, other than across-the-board reductions that apply to other named executive officers (as set forth in the Company’s most recently-filed proxy statement), by the Company of your Annual Base Salary, STIP target
opportunity, LTIP target opportunity or total direct compensation opportunity (provided that for purposes of this clause (ii) a material reduction shall be any reduction of greater than 10% occuring during the Term); (iii) a material
change in geographic location at which you must perform services under this Agreement from the Company’s offices at which you were principally employed (the Company has determined that a relocation of more than fifty (50) miles would
constitute such a material change); or (iv) a material breach by the Company of this Agreement. A termination of your employment by you shall not be deemed to be for Good Reason unless (x) you give notice to the Company of the existence of
the event or condition constituting Good Reason within 90 days after you have knowledge that such event or condition initially occurs or exists, (y) the Company fails to cure such event or condition within 30 days after receiving such written
notice (or, if earlier, the last day of the Term), and (z) your Date of Termination (as defined below) occurs not later than 150 days after such event or condition initially occurs or exists (or, if earlier, the last day of the Term).

  

	 	d)	 Notice of Termination. Any termination by the Company for Cause, or by you for Good Reason, shall be communicated by a written notice to the
other party which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your
employment under the provision so indicated and (iii) if the Date of Termination is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than 30 days after the giving of such notice). The
failure by the Company or you to set forth in 

  
 3 

	 	 
the notice of termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of the Company or you, respectively, hereunder or preclude the
Company or you, respectively, from asserting such fact or circumstance in enforcing the Company’s or your rights hereunder. 

  

	 	e)	 Date of Termination. “Date of Termination” means (i) if your employment is terminated by the Company for Cause, or by you for
Good Reason, the date of receipt of the notice of termination or any later date specified within 30 days of such notice, as the case may be, (ii) if your employment is terminated by the Company other than for Cause or Disability, or if you
voluntarily resign without Good Reason, the date on which the terminating party notifies the other party that such termination shall be effective, provided that on a voluntary resignation without Good Reason, the Company may, in its sole discretion,
make such termination effective on any date it elects in writing, between the date of the notice and the proposed date of termination specified in the notice, (iii) if your employment is terminated by reason of death, the date of your death,
(iv) if your employment is terminated by the Company due to Disability, the Disability Effective Date, or (v) if your employment is terminated at the end of the Term. 

5. Severance Payments 
  

	 	a)	 Disability; Other than for Cause or Good Reason. If, during the Term, the Company terminates your employment for Disability or other than for
Cause, or if you terminate your employment for Good Reason: 

  

	 	i.	 The Company shall pay to you the sum of: (A) the portion of your Annual Base Salary earned through the Date of Termination, to the extent not
previously paid; (B) the amount of any incentive compensation under the STIP or LTIP that has been earned by you for a completed fiscal year or other measuring period preceding the Date of Termination, but has not yet been paid to you; and
(C) any accrued paid time-off, to the extent not previously paid (the sum is referred to as the “Accrued Benefits”). Unless subject to a valid deferral election made pursuant to the terms of the Company’s deferred
compensation plan, the Accrued Benefits described in clauses (A) and (C) shall be paid in a single lump sum within 30 days after the Date of Termination and the Accrued Benefits described in Clause (B) shall be paid in a single lump
sum within 30 days after the Date of Termination (but in no event later than two and one half months following the end of the fiscal year or other measuring period preceding the Date of Termination). 

 

	 	ii.	 The Company shall pay or provide to you the severance benefits described in this Section 5(a)(ii) if and only if you sign and do not revoke a
release of claims agreement in the form attached as Exhibit A, with such changes as the Company may determine to be required or reasonably advisable in order to 

  
 4 

	 	 
make the release enforceable and otherwise compliant with applicable law (the “Release”), and the Release becomes effective and irrevocable no later than the 60th day following your Date of Termination (the “Release
Deadline”). If these conditions are not satisfied, then you will forfeit any right to severance payments under this Section 5(a)(ii). To become effective and irrevocable, the Release must be executed by you and any revocation periods
(as required by statute, regulation, or otherwise) must have expired without you having revoked the Release. The severance benefits under this Section 5(a)(ii) are as follows: 

 

	 	(A)	 Two times the sum of (x) your Annual Base Salary, (y) the average of the annual incentives payable to you under the annual incentive plan
(STIP) for the last three full fiscal years prior to the Date of Termination, and (z) an amount equal to 12 monthly medical and dental COBRA premiums (both the employer and employee portion) and long-term care premiums, based on the level of
coverage in effect for you (e.g., employee only or family coverage) immediately prior to the Date of Termination. The Company shall pay this amount within 10 days after the date that the Release becomes effective and irrevocable; provided,
however, that if the Release Deadline could occur in the calendar year immediately following your Date of Termination, then the amount shall be paid within 10 days after the date of the Release Deadline (even if the Release has become effective and
irrevocable in accordance with its terms prior to that date). 

  

	 	(B)	 The annual incentive that would have been payable to you under the STIP for the fiscal year during which the Date of Termination occurs, determined
as if you had remained employed for the entire year (and any additional period of time necessary to be eligible to receive the annual incentive for the year), based on actual performance during the entire fiscal year and without regard to any
discretionary adjustments that have the effect of reducing the amount of the annual incentive (other than discretionary adjustments applicable to all senior executives who did not terminate employment), pro-rated based on the number of days in the
Company’s fiscal year through (and including) your Date of Termination. The pro-rated annual incentive shall be payable in a single lump sum at the same time that payments are made to other participants in the STIP for that fiscal year
(pursuant to the terms of the STIP but in no event later than two and one-half months after the fiscal year during which the Date of Termination occurs), or as otherwise may be provided in a valid deferral election made pursuant to the terms of the
Company’s deferred compensation plan. 

  
 5 

	 	(C)	 If and only if the Date of Termination occurs in the second half of a performance period under the LTIP, the cash LTIP and performance shares that
would have been payable to you for that particular performance period (and only that performance period), determined as if you had remained employed for the entire performance period (and any additional period of time necessary to be eligible to
receive payment for the performance period), based on actual performance during the entire performance period and without regard to any discretionary adjustments that have the effect of reducing the amount of payment (other than discretionary
adjustments applicable to all senior executives who did not terminate employment), pro-rated based on the number of days in the performance period through (and including) your Date of Termination. The cash LTIP and performance shares earned, if any,
shall be payable in a single lump sum at the same time that payments are made to other participants in the LTIP for that performance period (pursuant to the terms of the LTIP but in no event later than two and one-half months after the performance
period during which the Date of Termination occurs), or as otherwise may be provided in a valid deferral election made pursuant to the terms of the Company’s deferred compensation plan. 

 

	 	(D)	 All outstanding and unvested Company restricted shares, restricted share units and stock options that are subject to a vesting schedule based solely
on continued service (and specifically excluding any awards with respect to which the number of shares earned depends upon performance) shall become immediately vested and exercisable. In addition, all outstanding and vested Company stock options
(including those that vest pursuant to the operation of the immediately preceding sentence) will remain exercisable for the full duration of their term. 

 

	 	iii.	 To the extent not previously paid or provided in Section 5(a)(i) above, the Company shall pay or provide, or cause to be paid or provided, to
you any other amounts or benefits required to be paid or provided or which you are eligible to receive under any plan, program, policy or practice or contract or agreement of the Company, including any benefits to which you are entitled under Part 6
of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended, and the Company’s unfunded nonqualified supplemental retirement plan (such other amounts and benefits shall be hereinafter referred to as the
“Other Benefits”), in accordance with the terms and normal procedures of each such plan, program, policy or practice or contract or agreement, based on accrued and vested benefits through the Date of Termination.

  

	 	b)	 Death; Cause; Other than for Good Reason; Expiration of Term. If your employment is terminated for Cause, or if you voluntarily terminate
your 

  
 6 

	 	 
employment without Good Reason or you die, or upon expiration of the Term due to either party’s election not to renew the then-current term, this Agreement shall terminate without further
obligations to you other than the obligation to pay to you your Accrued Benefits through the Date of Termination and the Other Benefits, in each case to the extent not previously paid or provided. 

 

	 	c)	 Full Settlement. Except as otherwise provided in Section 8 of this Agreement, or in the applicable compensation recovery policy
maintained by the Company from time to time, as the same may be amended to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act or any rules or regulations issued by the Securities and Exchange Commission or applicable
securities exchange, the Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company or any of its affiliates may have against you or others. In no event shall you be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to you under any of the provisions
of this Agreement and such amounts shall not be reduced whether or not you obtain other employment. If you receive payments under Section 5(a)(ii) of this Agreement, then you shall not be entitled to any other severance pay or benefits under
any severance plan, program or policy of the Company or its affiliates, unless otherwise authorized by the Compensation Committee, in their discretion. 

6. Confidential Information 

You acknowledge that the information, observations and data obtained by you while employed by the Company pursuant to this
Agreement, as well as those obtained by you while employed by the Company or any of its subsidiaries or affiliates or any predecessor thereof prior to the date of this Agreement, concerning the business or affairs of the Company or any of its
subsidiaries or affiliates or any predecessor thereof, including, without limitation, information relating to the products, suppliers, customers, processes, costs, prices, business plans and strategies of the Company or any of its subsidiaries or
affiliates or any predecessor thereof (unless and except to the extent the foregoing become generally known to and available for use by the public other than as a result of your acts or omissions to act in violation of this Agreement) (hereinafter
defined as “Confidential Information”) are the property of the Company or such subsidiary or affiliate. Therefore, you agree that both during and after the Term you will not disclose any Confidential Information without the prior
written consent of the Chairman of the Board of Directors (which may be withheld for any reason or no reason) unless and except to the extent that such disclosure is (i) made in the ordinary course of your performance of your duties under this
Agreement or (ii) required by any subpoena or other legal process (in which event you will give the Company prompt notice of such subpoena or other legal process in order to permit the Company to seek appropriate protective orders), and that
you shall not use any Confidential Information for your own account without the prior written consent of the Chairman of the Board of Directors (which may be withheld for any reason or no reason). You will deliver to the

  
 7 

 
Company at the termination of the Term, or at any other time the Company may reasonably request, all memoranda, notes, plans, records, reports, computer files and software and other documents and
data (and copies thereof) relating to the Confidential Information, or to the work product or the business of the Company or any of their subsidiaries or affiliates which you may then possess or have under your control. Your obligations under this
Section 6 are in addition to, and not in limitation of or preemption of, all other obligations of confidentiality which you may have to the Company under general legal or equitable principles, and federal, state or local law. 

7. Non-Solicitation; Non-Competition; Non-Disparagement 

You acknowledge that the services provided under this Agreement give you the opportunity to have special knowledge of the
Company, its Confidential Information, and the capabilities of individuals employed by or affiliated with the Company. You further acknowledge that interference with those business or employment relationships of the Company would cause irreparable
injury to the Company. Consequently, you agree to be subject to the following restrictive covenants: 
  

	 	a)	 You agree that during the period commencing on the date of this Agreement and ending two years after the Date of Termination (the
“Protection Period”), and provided that the Company has not materially breached its obligations under Section 5 hereof, you will not in any manner, directly or indirectly, through any person, firm or corporation, alone or as a
member of a partnership or limited liability company or as an officer, director, shareholder, investor or employee of or in any other corporation or enterprise or otherwise, in the United States, (i) have any direct or indirect equity or other
ownership interest in, or provide any financial or other assistance (whether as a lender, investor or otherwise) to, any Competitive Business (as defined below); (ii) perform services as a director, officer, manager, employee, member,
consultant, representative, agent or otherwise for any Competitive Business; or (iii) otherwise engage in any Competitive Business, including, without limitation, by diverting or attempting to divert from the Company or any of its subsidiaries
or affiliates, any business whatsoever by influencing or attempting to influence, or soliciting or attempting to solicit any of the customers of the Company or any of its subsidiaries or affiliates (or any potential customers with whom the Company
or any of its subsidiaries or affiliates had business contact during the one-year period ending on the Date of Termination). For purposes of this Section 7, the term “Competitive Business” shall mean any person or entity
(including any joint venture, partnership, firm, corporation, or limited liability company) that conducts a real estate business that is competitive with the commercial office, retail rental, and/or multifamily residential portfolios owned or
managed by the Company or any of its subsidiaries or affiliates as of the Date of Termination (or any significant business that is being actively pursued as of the Date of Termination by the Company or any of its subsidiaries or affiliates).

  

	 	b)	 You agree that during the Protection Period, and provided that the Company has not materially breached its obligations under Section 5 hereof,
you will not in any 

  
 8 

	 	 
manner, directly or indirectly, through any person, firm or corporation, alone or as a member of a partnership or limited liability company or as an officer, director, shareholder, investor or
employee of or in any other corporation or enterprise or otherwise, induce or attempt to induce any employee of the Company or any of its subsidiaries or affiliates, but only with respect to employees with whom you had direct contact while employed
by the Company, to quit or abandon their employ. 

  

	 	c)	 You agree to refrain, both during and after the Term, from publishing or providing any oral or written statements about the Company or its
subsidiaries or affiliates, or any of such entities’ officers, directors, managers, employees, agents or representatives that are disparaging, slanderous, libelous or defamatory, or that disclose private or Confidential Information about their
business affairs, or that constitute an intrusion into their private lives, or that give rise to unreasonable publicity about their private lives, or that place them in a false light before the public, or that constitute a misappropriation of their
name or likeness. 

  

	 	d)	 Likewise, neither the Company nor its subsidiaries or affiliates, shall publish or provide any oral or written statements about you or your family
that are disparaging, slanderous, libelous or defamatory, or that disclose private or confidential information about your business or personal affairs, or that constitute an intrusion into your private life, or that give rise to unreasonable
publicity about your private life, or that place you or your family in a false light before the public or that constitute a misappropriation of your name or likeness. 

 

	 	e)	 Nothing in this Section 7 shall prohibit you from being: (i) a shareholder in a mutual fund or a diversified investment company or
(ii) an owner of not more than 5% of the outstanding equity securities of any class of a corporation or other entity which is publicly traded, provided that you have no active participation in the business of such corporation or other entity.

  

	 	f)	 You agree and acknowledge that the promises and obligations made by the Company in this Agreement (specifically including, but not limited to, the
payments and benefits provided for under Section 5(a)(ii) hereof) constitute sufficient consideration for the covenants contained in this Section 7. You also agree and acknowledge that the covenants contained in this Section 7:
(i) are reasonable in period, scope and area, and (ii) are necessary to protect legitimate proprietary and business interests of the Company and its subsidiaries and affiliates. If, at the time of enforcement of this Section 7, a
court of competent jurisdiction holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances shall be
substituted for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope or area permitted by law. 

 

	 	g)	 Your obligations set forth in this Section 7 shall remain in full force and effect for the entire period provided herein notwithstanding the
termination of your 

  
 9 

	 	 
employment under this Agreement for any reason; provided that your obligations under Section 7(a) shall cease if the Company terminates your employment for Cause or you terminate your
employment for Good Reason. 

 8. Enforcement 

Because your services are unique and because you have access to Confidential Information and work product, the parties
hereto agree that the Company would be damaged irreparably in the event any of the provisions of Sections 6 and 7 hereof were not performed in accordance with their specific terms or were otherwise breached and that monetary damages would be an
inadequate remedy for any such non-performance or breach. Therefore, the Company (or its successors or assigns) shall be entitled, in addition to other rights and remedies existing in their favor, to an injunction or injunctions to prevent any
breach or threatened breach of any of such provisions and to enforce such provisions specifically (without posting a bond or other security). 
 9. Survival 
 Subject to any limits on applicability
contained therein, Sections 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 and 16 shall survive and continue in full force in accordance with their terms notwithstanding any termination of the Term or this Agreement. 

10. Notices 
 Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight carrier or mailed by first class mail, return receipt requested, to the
recipient. Notices to you shall be sent to your most recent address provided to the Company. Notices to the Company should be sent to the Chairman of the Board of Directors and the Executive Vice President of Human Resources, with a copy to the
General Counsel. Any notice under this Agreement will be deemed to have been given when so delivered, sent or mailed. 
 11. Successors and Assigns 
 This Agreement is personal to
you, and, without the prior written consent of the Company, shall not be assignable by you other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by your legal representatives.
This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Except as provided in the immediately following sentence, without the prior written consent of you this Agreement shall not be assignable by
the Company. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. “Company” means the Company as hereinbefore defined and any successor to its

  
 10 

 
business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or otherwise. 

12. Amendment and Waiver 
 The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and you, 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 this Agreement. 
 13. Miscellaneous

 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. This Agreement embodies
the complete agreement and understanding between the parties with respect to the subject matter hereof and effective as of its date supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or
oral, which may have related to the subject matter hereof in any way. The Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Company is required to withhold pursuant to any law or
government regulation or ruling. This Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and both of which taken together shall constitute one and the same agreement. This Agreement shall be governed,
construed, interpreted and enforced in accordance with the substantive laws of the State of Ohio, without regard to conflicts of law principles. 
 14. Section 409A Compliance 
  

	 	a)	 Section 409A of the Internal Revenue Code (“Section 409A”) imposes payment restrictions on “separation pay” (i.e.,
payments owed to you upon termination of employment). Failure to comply with these restrictions could result in negative tax consequences to you, including immediate taxation, interest and a 20% penalty tax. It is the Company’s intent that
this Agreement be exempt from the application of, or otherwise comply with, the requirements of Section 409A. Specifically, any taxable benefits or payments provided under this Agreement are intended to be separate payments that qualify for the
“short-term deferral” exception to Section 409A to the maximum extent possible, and to the extent they do not so qualify, are intended to qualify for the involuntary separation pay exceptions to Section 409A of the Code, to the
maximum extent possible. If neither of these exceptions applies, then notwithstanding any provision in this Agreement to the contrary: 

  
 11 

	 	i.	 All amounts that would otherwise be paid or provided during the first six months following the date of termination shall instead be accumulated
through and paid or provided (together with interest on any delayed payment at the applicable federal rate under the Internal Revenue Code), on the first business day following the six-month anniversary of your termination of employment.

  

	 	ii.	 Any expense eligible for reimbursement must be incurred, or any entitlement to a benefit must be used, during the Term (or the applicable expense
reimbursement or benefit continuation period provided in this Agreement). The amount of the reimbursable expense or benefit to which you are entitled during a calendar year will not affect the amount to be provided in any other calendar year, and
your right to receive the reimbursement or benefit is not subject to liquidation or exchange for another benefit. Provided the requisite documentation is submitted, the Company will reimburse the eligible expenses on or before the last day of the
calendar year following the calendar year in which the expense was incurred. 

  

	 	b)	 For purposes of this Agreement, “termination of employment” or words or phrases to that effect shall mean a “separation from
service” within the meaning of Section 409A. 

 15. Dispute Resolution

  

	 	a)	 In the event any claim, dispute or controversy arises in connection with this Agreement or the interpretation or enforcement of any provision of
this Agreement and the claim, dispute or controversy is not resolved within 30 days through informal, good faith negotiations between the parties, the claim, dispute or controversy shall be referred to non-binding mediation. It is agreed that any
mediation shall be conducted in Cleveland, Ohio, or some other location upon mutual consent of the parties involved, at a time and place convenient to the mediator and the parties involved. 

 

	 	b)	 The parties shall, in good faith, select a mediator who is mutually agreeable to both sides. Each party shall bear his or its own costs and
attorneys’ fees associated with the mediation and shall share equally the responsibility for paying the mediator’s fee. 

  

	 	c)	 Should any claim, dispute, or controversy remain in existence between the parties after the completion of the two-step resolution process set forth
above, either party may pursue its remedies for such breach in a court of competent jurisdiction in Cleveland, Ohio. 

 16. Severability 
 In the event that any one or more of the
provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but

  
 12 

 
this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had never been contained herein, unless the deletion of such provision or provisions would result in such
a material change so as to cause performance of the terms and conditions of this Agreement to be unreasonable. 

17. Entire Agreement 
 This Agreement constitutes the entire agreement between the parties pertaining to its subject matter, and it supersedes all prior contemporaneous agreements, representations, and understandings of the
parties. No supplement, modification, or amendment of this agreement will be binding unless executed in writing by all parties. 
 If the foregoing correctly sets forth our understanding, please sign, date and return three originally signed copies of this Agreement to the undersigned for execution on behalf of the Company. After this
Agreement has been executed by the Company and a fully-executed copy returned to you, it shall constitute a binding agreement between us. 
  

	
	FOREST CITY ENTERPRISES, INC.
	
	/s/ Charles A. Ratner
	By:    Charles A. Ratner
	Its:    Chairman of the Board of Directors

  

	
	ACCEPTED AND AGREED:
	
	/s/ David J. LaRue
	David J. LaRue

 Dated: September 22, 2011 

  
 13 

 EXHIBIT A 
 GENERAL RELEASE 
 This General Release (this
“Release”) is entered into between Forest City Enterprises, Inc. (the “Company”) and David J. LaRue (the “Employee”) as of             , 2011. The
Company and the Employee agree as follows: 
 1. Employment Status. The Employee’s employment with
the Company and its affiliates terminated on                 , 20      . 

2. Payment and Benefits. Upon the effectiveness of the terms set forth herein, the Company shall provide the
Employee with certain payments and benefits set forth in Section 5(a)(ii) of the Employment Agreement between the Company and Employee dated             ,
20       (the “Employment Agreement”), upon the terms, and subject to the conditions, of the Employment Agreement. 

3. No Liability. This Release does not constitute an admission by the Company, or any of its parents,
subsidiaries, affiliates, divisions, officers, directors, partners, agents, or employees, or by the Employee, of any unlawful acts or of any violation of federal, state or local laws. 

4. Release. 

(a) In consideration of the payments and benefits set forth in Section 5(a)(ii) of the Employment
Agreement, the Employee for himself, his heirs, administrators, representatives, executors, successors and assigns (collectively, “Employee Releasors”) does hereby irrevocably and unconditionally release, acquit and forever discharge the
Company and each of its parents, subsidiaries, affiliates, divisions, successors, assigns, officers, directors, partners, agents, attorneys, and former and current employees, including without limitation all persons acting by, through, under or in
concert with any of them (collectively, “Company Releasees”), and each of them, from any and all claims, demands, actions, causes of action, costs, attorney fees, and all liability whatsoever, whether known or unknown, fixed or contingent,
which the Employee has, had, or may ever have against the Company Releasees relating to or arising out of the Employee’s employment or separation from employment with the Company, from the beginning of time and up to and including the date the
Employee executes this Release. This Release includes, without limitation, (i) law or equity claims; (ii) contract (express or implied) or tort claims; (iii) claims for wrongful discharge, retaliatory discharge, whistle blowing,
libel, slander, defamation, unpaid compensation, intentional infliction of emotional distress, fraud, public policy contract or tort, and implied covenant of good faith and fair dealing; (iv) claims arising under any federal, state, or local
laws of any jurisdiction that prohibit age, sex, race, national origin, color, disability, religion, veteran, military status, sexual orientation, or any other form of discrimination, harassment, or retaliation (including without limitation under
the Age Discrimination in Employment Act of 1967 as amended by the Older Workers Benefit Protection Act (“ADEA”), Title VII of the Civil Rights Act of 1964 as amended by the Civil Rights Act of 1991, the Equal Pay Act of 1962, and the
Americans with Disabilities Act of 1990, the Rehabilitation Act, the Family and Medical Leave Act, the Sarbanes-Oxley Act, the Employee Polygraph Protection Act, the Uniformed Services Employment and

  
 14 

 
Reemployment Rights Act of 1994, the Equal Pay Act, the Lilly Ledbetter Fair Pay Act or any other foreign, federal, state or local law or judicial decision), (v) claims arising under the
Employee Retirement Income Security Act (excluding claims for amounts that are vested benefits or that the Employee is otherwise entitled to receive under any employee benefit plan of the Company or any of its affiliates in accordance with the terms
of such plan and applicable law), and (vi) any other statutory or common law claims related to the Employee’s employment with the Company or the separation of the Employee’s employment with the Company; provided, however, that nothing
herein shall release any obligation of the Company under the Employment Agreement. 
 In
addition, nothing in this Release is intended to interfere with the Employee’s right to file a charge with the Equal Employment Opportunity Commission or any state or local human rights commission in connection with any claim the Employee
believes he may have against the Company Releasees. However, by executing this Release, the Employee hereby waives the right to recover in any proceeding that the Employee may bring before the Equal Employment Opportunity Commission or any state
human rights commission or in any proceeding brought by the Equal Employment Opportunity Commission or any state human rights commission on the Employee’s behalf. 

(b) In consideration of the Employee’s release of claims set forth in Section 4(a) of this
Release, the Company and each of its parents, subsidiaries, affiliates, divisions, successors, assigns, officers, directors, partners, agents, and former and current employees, including without limitation all persons acting by, through, under or in
concert with any of them (collectively, “Company Releasors”) does hereby irrevocably and unconditionally release, acquit and forever discharge the Employee for himself, his heirs, administrators, representatives, executors, successors and
assigns (collectively, “Employee Releasees”), and each of them, from any and all claims, demands, actions, causes of action, costs, attorney fees, and all liability whatsoever, whether known or unknown, fixed or contingent, which any of
the Company Releasors has, had, or may ever have against any of the Employee Releasees relating to or arising out of the Employee’s employment or separation from employment with the Company, from the beginning of time and up to and including
the date the Employee executes this Release; provided, however, that nothing herein shall release any obligation of the Employee under the Employment Agreement. 

5. Bar. The Employee and the Company acknowledge and agree that if he or it should hereafter make any claim or
demand or commence or threaten to commence any action, claim or proceeding against the other party with respect to any cause, matter or thing which is the subject of the releases under Section 4 of this Release, this Release may be raised as a
complete bar to any such action, claim or proceeding, and the applicable Releasee may recover from the other party all costs incurred in connection with such action, claim or proceeding, including attorneys’ fees. 

6. Governing Law. This Release shall be governed by and construed in accordance with the laws of the State of
Ohio, without regard to conflicts of laws principles. 
 7. Acknowledgment. The Employee has read this
Release, understands it, and voluntarily accepts its terms, and the Employee acknowledges that he has been advised by the 

  
 15 

 
Company to seek the advice of legal counsel before entering into this Release, and has been provided with a period of at least twenty-one (21) days in which to consider entering into this
Release. The Employee acknowledges and agrees that the payments and benefits provided under Section 5(a)(ii) of the Employment Agreement represent substantial value over and above that to which the Employee would otherwise be entitled.

 8. Revocation. The Employee has a period of seven (7) days following the execution of this
Release during which the Employee may revoke this Release by delivering written notice to the Company, and this Release shall not become effective or enforceable until such revocation period has expired. The Employee understands that if he revokes
this Release, it will be null and void in its entirety, and he will not be entitled to any payments or benefits provided in this Release, including without limitation under Section 5(a)(ii) of the Employment Agreement. 

9. Miscellaneous. This Release is the complete understanding between the Employee and the Company in respect of
the subject matter of this Release and supersedes all prior agreements relating to the same subject matter. The Employee has not relied upon any representations, promises or agreements of any kind except those set forth herein in signing this
Release. In the event that any provision of this Release should be held to be invalid or unenforceable, each and all of the other provisions of this Release shall remain in full force and effect. If any provision of this Release is found to be
invalid or unenforceable, such provision shall be modified as necessary to permit this Release to be upheld and enforced to the maximum extent permitted by law. 

10. Counterparts. This Release may be executed by the parties hereto in counterparts, which taken together shall
be deemed one original. 
 IN WITNESS WHEREOF, the parties have executed this Release on the date first set
forth above. 
  

			
	FOREST CITY ENTERPRISES, INC.
		
	By:	 	 
		
	Its:	 	 

  

	
	Employee:
	
	[SAMPLE RELEASE – DO NOT SIGN]
	David J. LaRue

  
 16

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