Document:

EXHIBIT
        10.5

      

      

      

      April
        1,
        2005

      

      

      Mr.
        Robert S. Beall

      1903
        Central Drive, Suite 102

      Bedford,
        Texas 76021

      

      Dr.
        Glenn
        S. Penny

      1004
        South Plainsman Road

      Marlow,
        OK 73055

      

      

      Gentlemen:

      

      The
        purpose of this letter agreement is to set forth our agreement as
        follows:

      

      	1.  	
              On
                the date hereof, Flotek Industries, Inc. (“Flotek”) has paid to Robert S.
                Beall (“Beall”) $225,511.20.

            

      

      	2.  	
              On
                the date hereof, Flotek has paid Glenn S. Penny (“Penny”) $4,062.67 and
                deliveed to Penny a promissory note in the original principal amount
                of
                $128,721.65.

            

      

      	3.  	
              The
                performance by Flotek of its obligations pursuant to Sections 1 and
                2 of
                this letter agreement shall constitute full performance of the obligations
                by Flotek and Chemical & Equipment Specialties, Inc. (“CESI”) of their
                obligations to Stimulation Chemicals, LLC (“StimChem”) and its members and
                affiliates in connection with the transactions entered into pursuant
                to
                (i) that certain agreement between CESI and StimChem dated January
                30,
                2003 (the “January Agreement”), and (ii) that certain agreement between
                CESI and StimChem dated August 25, 2003 (the “August
                Agreement”).

            

      

      	4.  	
              The
                January Agreement and the August Agreement have been and are hereby
                terminated.

            

      

      	5.  	
              Flotek
                and CESI hereby release each of Beall, Penny and StimChem, and the
                affiliates, managers, officers and representatives of StimChem, from
                any
                and all claims, liabilities, obligations, and causes of action whatsoever,
                known or unknown, including but not limited to obligations arising
                pursuant to (i) the January Agreement, (ii) the August Agreement,
                and/or
                (iii) previous negotiations or undertakings with respect to the
                same.

            

      

      
        
           

        

        
           

          
            

          

        

        
          
            Mr.
              Robert S. Beall

            Dr.
              Glenn
              S. Penny

            April
              1,
              2005

            Page
              2

          

        

         

         

      

      	6.  	
              Beall,
                Penny and StimChem hereby release each of Flotek and CESI, and their
                affiliates, and their respective directors, managers, officers and
                representatives, from any and all claims, liabilities, obligations
                and
                causes of action whatsoever, known or unknown, including but not
                limited
                to obligations arising pursuant to (i) the January Agreement, (ii)
                the
                August Agreement, and/or (iii) previous negotiations or undertakings
                with
                respect to the same.

            

      

      	7.  	
              An
                “affiliate” of a person shall be any person controlling, controlled by, or
                under common control with, that person. Each person who has released
                a
                claim hereunder on behalf of any of its affiliates shall indemnify
                the
                released party with respect to any claim asserted by its affiliate
                which
                is purported to be released hereunder.

            

      

      If
        the
        foregoing sets forth the terms of our agreement, please execute this letter
        where indicated below in order to establish a binding agreement under the
        laws
        of the State of Texas.

      
        	 	 	 
	 	Sincerely,
	 	 
	 	FLOTEK
                INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Jerry
                D. Dumas, Sr.
	 	
                
Jerry
                D. Dumas, Sr., Chief Executive Officer

       

      
        	 	 	 
	 	CHEMICAL
                & EQUIPMENT SPECIALTIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Jerry
                D. Dumas, Sr.
	 	
                
Jerry
                D. Dumas, Sr., Chief Executive Officer

      

      
        
           

        

        
           

          
            

          

        

        
           

          
            Mr.
              Robert S. Beall

            Dr.
              Glenn
              S. Penny

            April
              1,
              2005

            Page
              3

          

        

      

      

      ACCEPTED
        AND AGREED TO:

      

      

      /s/
        Robert S. Beall    

      Robert
        S.
        Beall

      

      

      /s/
        Glenn S. Penny    

      Glenn
        S.
        Penny

      

      STIMULATION
        CHEMICALS, LLCEXHIBIT
        10.6

      

      PROMISSORY
        NOTE

      

      
        	U.S. $128,721.65	
                 Houston,
                  Texas 

              	
                 April
                  1,
                  2005

              

      

       

      For
        value
        received, the undersigned, FLOTEK INDUSTRIES, INC. (the "Maker"), promises
        to
        pay to the order of GLENN S. PENNY (the “Payee”) at 1004 South Plainsman Road,
        Marlow, Oklahoma 73055 or at such other place and to such other party or
        parties
        as the owner and holder hereof may from time to time designate in writing,
        the
        principal sum of One Hundred Twenty-Eight Thousand Seven Hundred Twenty-One
        and
        65/100 U.S. Dollars (U.S. $128,721.65), together
        with interest from the date hereof until maturity on the principal amount
        of
        this Promissory Note remaining outstanding and unpaid from time to time at
        a per
        annum rate equal to 12 1⁄2% , with no compounding.

      

      The
        Maker
        shall make payments pursuant to this Note as follows: (i) all accrued interest
        shall be paid on a monthly basis, beginning on May 1, 2005, and (ii) principal
        payment in the amount of $7,151.20 shall be made on the first day of each
        month,
        beginning on November 1, 2005. On April 1, 2007 (the "Maturity Date"), the
        Maker
        shall pay the holder of this Promissory Note all principal and interest then
        owed by the Maker pursuant to this Promissory Note.

      

      All
        past
        due installments of principal shall bear interest at the rate of eighteen
        percent (18%) per annum, with no compounding. All payments shall first be
        applied to accrued interest, if any, with the balance of the payment reducing
        the unpaid principal balance hereof.

      

      The
        Maker
        may from time to time prepay this Promissory Note, in whole or in part. Any
        such
        prepayment hereunder shall be applied first to accrued and unpaid interest,
        if
        any, owing on this Promissory Note, and the balance to the principal balance
        of
        this Promissory Note.

      

      The
        occurrence or existence of any of the following events or conditions shall
        constitute an "Event of Default":

      

      (a) the
        failure of the Maker to pay when due any of the principal or interest payable
        pursuant to this Note which failure is not cured within 3 days of written
        notice
        thereof from the holder of this Note; or

      

      (b) the
        assignment by the Maker for the benefit of creditors or the application by
        the
        Maker to any court for the appointment of a trustee or receiver for any of
        the
        assets of the Maker that have been pledged to secure the repayment of the
        Note
        or the commencement of any proceedings relating to the Maker under any
        bankruptcy, reorganization, arrangement, readjustment of debts or other
        insolvency law of any jurisdiction, or the entering of an order appointing
        such
        trustee or receiver or adjudicating the Maker bankrupt or insolvent or approving
        the petition in any such proceedings.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      If
        an
        event of default shall occur, the holder hereof may, at the option of the
        holder, without demand, notice or presentment, declare the entire unpaid
        principal balance of this Promissory Note, together with all accrued unpaid
        interest thereon, to be due and payable immediately. Upon any such declaration,
        the principal of this Promissory Note and any such accrued interest shall
        become
        and be immediately due and payable, and the holder hereof may thereupon proceed
        to protect and enforce the obligations of the Maker hereunder either by suit
        in
        equity or by action of law or by other appropriate proceedings, whether for
        specific performance (to the extent permitted by law) of any covenant or
        agreement contained herein or in aid of the exercise of any power granted
        herein, or proceed to enforce the payment of this Promissory Note or to enforce
        any other legal or equitable right of the holder hereof.

      

      If
        an
        event of default shall occur and this Promissory Note is placed in the hands
        of
        an attorney for collection, or if suit is filed hereon, or if this Promissory
        Note shall be collected by legal proceedings or through a probate or bankruptcy
        court, the Maker agrees to pay all costs of collection, including reasonable
        attorneys' fees.

       

      All
        agreements between the Maker and the holder hereof, whether now existing
        or
        hereafter arising and whether written or oral, are hereby limited so that
        in no
        contingency, whether by reason of acceleration of the maturity hereof or
        otherwise, shall the interest paid or agreed to be paid to the holder thereof
        exceed the maximum amount permissible under applicable law. All interest
        paid or
        agreed to be paid to the holder hereof shall, to the extent permitted by
        applicable law, be amortized, prorated, allocated, and spread throughout
        the
        full period of this Promissory Note until payment in full of the principal
        of
        this Promissory Note (including the period of any renewal or extension hereof)
        so that the rate of interest hereon is uniform throughout the term hereof.
        This
        paragraph shall control all agreements between the undersigned and the holder
        hereof relating to the obligations evidenced by this Promissory
        Note.

      

      This
        Promissory Note shall be construed in accordance with the laws of the State
        of
        Texas, U.S.A. and the laws of the United States applicable to transactions
        in
        Texas, U.S.A.

      

      This
        Promissory Note is delivered pursuant to the terms of that certain letter
        agreement dated the date hereof among Robert S. Beall, Glenn S. Penny,
        Stimulation Chemicals, LLC and Flotek Industries, Inc.

       

      
        	 	 	 
	 	FLOTEK
                INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Jerry
                D. Dumas, Sr.
	 	
                
Jerry
                D. Dumas, Sr., Chief Executive Officer

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