Flotek Industries, Inc. (NYSE:FTK) Files An 8-K Entry into a Material Definitive Agreement

On February 26, 2020, Flotek Chemistry, LLC (“Flotek Chemistry”), a wholly-owned subsidiary of Flotek Industries, Inc., entered into an amendment (the “Amendment”) to the Supply Agreement (the “Supply Agreement”) dated February 28, 2019 between Flotek Chemistry and Florida Chemical Company, LLC (“FCC”). to the terms and conditions of the Amendment, the Supply Agreement is amended to, among other things, (a) reduce the minimum quantity of terpene that Flotek Chemistry is required to purchase from FCC by approximately 3/4ths in 2020 and by approximately half in each of 2021, 2022 and 2023, (b) provide a fixed per pound price for terpene in 2020, (c) reduce the maximum amount of terpene subject to the Supply Agreement by approximately 1/3rd, and (d) change the payment terms to net 45 days. In order to make the terms and conditions of the Amendment effective, Flotek Chemistry made a one-time payment of $15,750,000 to FCC.

The foregoing description of the Amendment is qualified in its entirety by reference to the copy thereof filed as Exhibit 10.1 to this Form 8-K, which is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

FLOTEK INDUSTRIES INC/CN/ Exhibit
EX-10 2 exhibit101.htm EXHIBIT 10 Exhibit Exhibit 10.1Information identified with “[***]” has been excluded from this exhibit because it is not material and would be competitively harmful if disclosed.AMENDMENT TO SUPPLY AGREEMENTTHIS AMENDMENT to Supply Agreement (“Amendment”) is effective as of February 26,…
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About Flotek Industries, Inc. (NYSE:FTK)

Flotek Industries, Inc. is a technology-driven company that develops and supplies oilfield products, services and equipment to the oil, gas and mining industries. The Company has four business segments: Energy Chemistry Technologies, Consumer and Industrial Chemical Technologies, Drilling Technologies, and Production Technologies. The Energy Chemistry Technologies segment designs, develops, manufactures, packages and markets chemicals for use in oil and gas well drilling, cementing, completion, stimulation and production activities. The Consumer and Industrial Chemicals Technologies segment sources citrus oil domestically and internationally, and is a processor of citrus oils. The Drilling Technologies segment is a provider of downhole drilling tools for use in oilfield, mining, water-well and industrial drilling activities. The Production Technologies segment provides pumping system components, electric submersible pumps, gas separators, production valves and complementary services.