SEC Contract Filing

Filing Date: 2019-03-20

Document Content:
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<TYPE>EX-10.1
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<FILENAME>d706023dex101.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><I>Execution Version</I> </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>COOPERATION AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Cooperation Agreement (this &#147;<U>Agreement</U>&#148;) is made and entered into as of March&nbsp;19, 2019 by and among Flotek
Industries, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;), and the entities and natural persons set forth in the signature pages hereto (collectively, &#147;<U>BLR Partners</U>&#148;) (each of the Company and BLR Partners, a
&#147;<U>Party</U>&#148; to this Agreement, and collectively, the &#147;<U>Parties</U>&#148;). </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RECITALS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, as of the date of this Agreement, BLR Partners has a combined beneficial and economic ownership interest in shares of common stock,
par value $0.0001 per share, of the Company (the &#147;<U>Common Stock</U>&#148;) totaling, in the aggregate, 1,616,000 shares, or approximately 2.8% of the Common Stock issued and outstanding on the date of this Agreement (&#147;<U>BLR
Partners&#146; Ownership</U>&#148;); </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, BLR Partners submitted a letter to the Company on January&nbsp;24, 2019 (the
&#147;<U>Nomination Letter</U>&#148;) nominating two directors to be elected to the board of directors of the Company (the &#147;<U>Board</U>&#148;) at the 2019 annual meeting of stockholders of the Company (the &#147;<U>2019 Annual
Meeting</U>&#148;); and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, as of the date of this Agreement, the Company and BLR Partners have determined to come to an agreement
with respect to the addition of Mr.&nbsp;Paul&nbsp;W. Hobby to the Board, the withdrawal by BLR Partners of the Nomination Letter and the director nominations made pursuant to the Nomination Letter, and certain other matters, each as provided in
this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties to this Agreement, intending to be legally bound, agree as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Board Appointment and Related Agreements</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Board Appointment</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees that immediately following the execution of this Agreement, the Board and all applicable
committees of the Board shall take all necessary actions to increase the size of the Board from seven (7)&nbsp;to eight (8)&nbsp;directors and to appoint Mr.&nbsp;Hobby to the Board. Mr.&nbsp;Hobby shall stand for election at the 2019 Annual Meeting
together with the Company&#146;s other nominees. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Company will recommend, support and solicit proxies for
the election of Mr.&nbsp;Hobby at the 2019 Annual Meeting in the same manner as for the Company&#146;s other nominees at the 2019 Annual Meeting. The Company shall use its reasonable best efforts to hold the 2019 Annual Meeting no later than
May&nbsp;31, 2019. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(iii)&nbsp;&nbsp;&nbsp;&nbsp;If Mr.&nbsp;Hobby (or any BLR Replacement Director (as defined
below)) is unable or unwilling to serve as a director, resigns as a director (including as the result of the receipt of a greater number of votes &#147;withheld&#148; from his or her election than votes &#147;for&#148; such election at the 2019
Annual Meeting) or is removed as a director prior to the expiration of the Standstill Period (as defined below), and at such time BLR Partners&#146; Ownership is at least the lesser of (i) 2.0% of the Company&#146;s then outstanding Common Stock and
(ii) 1,147,000 shares of Common Stock (subject to adjustment for stock splits, reclassifications, combinations and similar adjustments) (the &#147;<U>Minimum Ownership Threshold</U>&#148;), BLR Partners shall have the ability to recommend a
substitute person(s) in accordance with this <U>Section</U><U></U><U>&nbsp;1(a)(iii)</U> (any such replacement nominee shall be referred to as a &#147;<U>BLR Replacement Director</U>&#148;). Any BLR Replacement Director must (A)&nbsp;qualify as
&#147;independent&#148; of the Company pursuant to NYSE listing standards, (B)&nbsp;have th