On May 28, 2019, CARBO Ceramics Inc. (the Company) entered into a Contract Manufacturing Services Agreement with PicOynx Inc. (PICONYX) pursuant to which the Company agreed to provide contract manufacturing services to PICONYX for certain of its products (the “Products”). Pursuant to the terms of the Agreement, the Company has agreed to lease certain property to PICONYX for production of the Products. The Agreement sets forth the general terms and conditions of the Company’s commitment to provide manufacturing services and certain production assets to PICONYX, and of PICONYX’s commitment to purchase those services and provide the requisite raw materials. Under a separate subscription agreement, the Company has agreed to contribute certain assets and services in exchange for a certain number of shares of PICONYX stock. In addition to describing the terms of ownership, pricing, yield, volume, and quality, the Agreement also contains customary representations, covenants, warranties and indemnification provisions.