Document:

sky-ex1015_11.htm

 

Exhibit 10.15

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated Employment Agreement (the “Agreement”) is made and entered into as of June 4, 2018 (the “Effective Date”) by and between Champion Home Builders, Inc. (the “Company”) and Keith Anderson (the “Executive”). For the avoidance of doubt, the effectiveness of this Agreement is contingent upon the occurrence of the Exchange (as defined below).

 

WHEREAS, the Company and the Executive entered into an employment agreement (the “Original Employment Agreement”), effective June 2, 2015 (the “Original Effective Date”), pursuant to which the Company employed the Executive as its President and Chief Executive Officer;

 

WHEREAS, the Company and the Executive wish to amend and restate such employment agreement;

 

WHEREAS, the Executive is possessed of certain experience and expertise that qualify him to provide the direction and leadership required by the Company and its Affiliates;

 

WHEREAS, the Executive is currently employed as Chief Executive Officer of the Company; and

 

WHEREAS, subject to the terms and conditions hereinafter set forth, the Company therefore wishes to continue to employ the Executive as its Chief Executive Officer and the Executive wishes to continue such employment.

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises, terms, provisions and conditions set forth in this Agreement, the parties hereby agree:

 

Employment.  Subject to the terms and conditions set forth in this Agreement, the Company hereby offers, and the Executive hereby accepts, employment.

 

Term.  The Executive’s employment hereunder shall continue until terminated in accordance with Section 5 hereof. Such period is hereafter referred to as the “Term.”

 

Capacity and Performance.

 

During the Term, the Executive shall serve the Company as its Chief Executive Officer.  In addition, and without further compensation, the Executive shall serve as a member of the Board of Directors of the Company and/or director and/or officer of one or more of the Company’s Affiliates, in each case if so elected or appointed from time to time.

 

During the Term, the Executive shall be employed by the Company on a full-time basis and shall perform the duties and responsibilities of his position, and such other duties and responsibilities on behalf of the Company and its Affiliates as reasonably may be designated from time to time by the Board or by its Chair or other designee and agreed to by Executive.

During the Term, the Executive shall devote his full business time and his best efforts, business judgment, skill and knowledge exclusively to the advancement of the business and interests of the Company and its Affiliates and to the discharge of his duties and responsibilities hereunder.  Executive may serve on up to two outside boards (or serve in a similar advisory capacity), so long as such participation does not conflict with the interests of the Company or the Executive’s duties or responsibilities hereunder.  The Executive shall not engage in any other business activity or serve in any industry, trade, professional, governmental or academic position during the term of this Agreement, except as may be expressly approved in advance by the Board in writing.

 

Compensation and Benefits.  As compensation for all services performed by the Executive during the Term and subject to the Executive’s performance of his duties and obligations to the Company and its Affiliates, pursuant to this Agreement or otherwise, the Company shall provide the Executive with the following compensation and benefits:

 

Base Salary. During the Term, the Company shall pay the Executive a base salary at the rate of Six Hundred and 

 

 

Twenty-five Thousand Dollars ($625,000) per annum, payable in accordance with the payroll practices of the Company and subject to increases from time to time by either the Board of Managers of Champion Enterprises Holdings, LLC (“Holdings”), or, effective as of the closing of the transactions contemplated by Exchange (as defined below), the Board of Directors of Skyline Champion Corporation (in either case as applicable, the “Board”) in its sole discretion (such base salary, as from time to time increased, the “Base Salary”). The Board shall review the Base Salary and Target Bonus (as defined below) at least once during each fiscal year during the Term, in light of factors including the Company’s performance and profitability, the individual performance of the Executive, compensation for similarly situated executives at peer companies, and such other metrics as it deems reasonable and appropriate, in its sole discretion.

 

Annual Bonus.  For each fiscal year completed during the Term (including, for the avoidance of doubt, the 2016 fiscal year), the Executive shall be eligible to participate in such annual bonus plan as may be established by the Company for its executives generally, as in effect from time to time. The Executive’s annual target bonus shall be one- hundred percent (100%) of the Base Salary (the “Target Bonus”), with a maximum annual bonus of two-hundred percent (200%) of the Target Bonus, with the actual amount of his bonus, if any, to be determined by the Board in accordance with the Executive’s performance against performance objectives for Executive and for the Company agreed to by Executive and the Board. Other than provided for in Sections 5(a), 5(b), 5(d) and 5(e), the Executive, in order to be eligible to earn an annual bonus for any fiscal year occurring during the Term hereof, must be employed on the date payment of annual bonuses for that fiscal year is made to Company executives generally.

 

Equity Incentive.  On or promptly following the Original Effective Date, Holdings granted to Executive 5,000,000 Class C Units representing profits interests in Holdings (the “Unit Award”).  The Unit Award and any units acquired thereunder has been subject to the terms and conditions of Holdings’ 2011 Management Incentive Plan, Second Amended and Restated Limited Liability Company Agreement, and the Unit Award agreement (each, as in effect from time to time).

Time Vesting Units.Fifty percent (50%) of the Unit Award are subject to vesting on an annual basis (the “Time Vesting Units”), with twenty percent (20%) vesting on each of the first, second, third, fourth and fifth anniversaries of the Original Effective Date, subject to Executive’s continued employment with the Company on each applicable vesting date.

 

Performance Vesting Units.Fifty percent (50%) of the Unit Award are subject to vesting based on attainment of MoM (as defined in the Unit Award agreement) hurdles (the “Performance Vesting Units”) as set forth in the Unit Award agreement, subject to Executive’s continued employment with the Company on the applicable vesting date.

 

Cancellation of Existing Units.  By executing the Original Employment Agreement, the Executive forfeited, without payment, as of the Original Effective Date, one hundred percent (100%) of the Class C Units in Holdings granted to Executive pursuant to that certain Class C Unit Award Agreement by and between Holdings and Executive, dated as of July 24, 2013, which were not yet vested as of the Original Effective Date, and Executive agreed to execute any documents reasonably requested by Holdings in connection with such forfeiture.

 

Vacations. During the Term, the Executive shall be entitled to earn vacation at the rate of four (4) weeks per year, to be taken at such times and intervals as shall be determined by the Executive, subject to the reasonable business needs of the Company. Vacation shall otherwise be governed by the policies of the Company, as in effect from time to time.

 

Other Benefits.  During the term hereof, the Executive shall be entitled to participate in any and all employee benefit plans from time to time in effect for employees of the Company generally, except to the extent any such employee benefit plan is in a category of benefit otherwise provided to the Executive (e.g., a severance pay plan). Such participation shall be subject to the terms of the applicable plan documents and generally applicable Company policies.  Except as otherwise provided in any plan or agreement or as prohibited by law, the Company may alter, modify, add to or terminate its employee benefit plans at any time as it, in its sole judgment, determines to be appropriate, without recourse by the Executive.

 

Business Expenses and In-Kind Benefits.  The Company shall pay or reimburse the Executive for all reasonable business expenses incurred or paid by the Executive in the performance of his duties and responsibilities hereunder, subject to any maximum annual limit and other restrictions on such expenses set by the Board and to such reasonable substantiation and documentation as may be specified by the Company from time to time. Additionally, the Company 

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agreed to reimburse reasonable attorneys’ fees, up to a maximum of $10,000, incurred by the Executive in connection with the review and negotiation of the Original Employment Agreement prior to the Original Effective Date. Any reimbursement of expenses or the provision of any in-kind benefits that would constitute nonqualified deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended (along with the rules and regulations thereunder, “Section 409A”) shall be subject to the following additional rules: (A) no reimbursement of any such expense, or the provision of any in-kind benefit, shall affect the Executive’s right to reimbursement of any other such expense, or the provision of any in-kind benefit, in any other taxable year; (B) reimbursement of the expense shall be made, if at all, not later than the end of the calendar year following the calendar year in which the expense was incurred; and (C) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for any other benefit.

 

Termination of Employment and Severance Benefits. The Executive’s employment hereunder shall terminate under the circumstances specified in this Section 5. The effective date of any such termination of employment is hereinafter referred to as the “Termination Date”.

 

Death.  In the event of the Executive’s death during the Term, the Executive’s employment hereunder shall immediately and automatically terminate. In such event, the Executive’s estate shall be entitled to receive: (i) (A) any Base Salary earned but not paid during the final payroll period of the Executive’s employment through the date of termination, including pay for any vacation time earned but not used through the date of termination, payable in accordance with the Company’s regular payroll practices on the Company’s next regular pay date following the Termination Date (or earlier, if so required by applicable law) and (B) any business expenses incurred by the Executive but un-reimbursed on the date of termination, provided that such expenses and required substantiation and documentation are submitted within sixty (60) days of termination, that such expenses are reimbursable under Company policy, and that any such expenses subject to the last sentence of Section 4(g) shall be paid not later than the deadline specified therein (all of the foregoing, subject to the timing of payment rules therein, “Final Compensation”) and (ii) any annual bonus compensation awarded for the fiscal year immediately preceding the year in which termination of employment occurs, but unpaid on the Termination Date, payable at the same time as bonuses are paid to Company executives generally; provided, however, that if paying such amount on the date on which bonuses are paid to Company executives generally would result in an additional tax on the Executive or his estate under Section 409A, then such bonus shall be payable no later than June 15 of the year of the Termination Date. The Company shall have no further obligation to the Executive hereunder.

 

Disability.

 

The Company may terminate the Executive’s employment hereunder, upon notice to the Executive, in the event that the Executive becomes disabled during his employment hereunder through any illness, injury, accident or condition of either a physical or psychological nature and, as a result, is unable to perform substantially all of his duties and responsibilities hereunder, notwithstanding the provision of any reasonable accommodation, for ninety (90) days during any period of three hundred and sixty-five (365) consecutive calendar days. In the event of such termination, the Company shall have no further obligation to the Executive, other than for payment of (i) Final Compensation and (ii) any annual bonus compensation awarded for the fiscal year immediately preceding the year in which termination of employment occurs, but unpaid on the Termination Date, payable at the same time as bonuses are paid to Company executives generally; provided, however, that if paying such amount on the date on which bonuses are paid to Company executives generally would result in an additional tax on the Executive or his estate under Section 409A, then such bonus shall be payable no later than June 15 of the year of the Termination Date.

 

The Board may designate another employee to act in the Executive’s place during any period of the Executive’s disability.  Notwithstanding any such designation, the Executive shall continue to receive the Base Salary in accordance with Section 4(a) and benefits in accordance with Section 4(f), to the extent permitted by the then-current terms of the applicable benefit plans, until the Executive becomes eligible for long-term disability income benefits under the Company’s long-term disability income plan or until the termination of his employment, whichever shall first occur. Notwithstanding anything in this Section 5(b)(ii) to the contrary, and for the avoidance of doubt, the combination of Base Salary and short-term disability income benefits (if any) during the period of Executive’s disability shall not exceed the amount of compensation and benefits that the Executive would have received during such period had the Executive been actively at work during such period.

 

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While receiving long-term disability income payments under the Company’s long-term disability income plan, the Executive shall not be entitled to receive any Base Salary under Section 4(a) hereof, but shall continue to participate in Company benefit plans in accordance with Section 4(f) and subject to the terms of such plans, until the termination of his employment.

 

If any question shall arise as to whether during any period the Executive is disabled through any illness, injury, accident or condition of either a physical or psychological nature so as to be unable to perform substantially all of his duties and responsibilities hereunder, the Executive may, and at the request of the Company shall, submit to a medical examination by a physician selected by the Company to whom the Executive or his duly appointed guardian, if any, has no reasonable objection to determine whether the Executive is so disabled and such determination shall for the purposes of this Agreement be conclusive of the issue. If such question shall arise and the Executive shall fail to submit to such medical examination, the Company’s determination of the issue shall be binding on the Executive.

 

By the Company for Cause.  The Company may terminate the Executive’s employment hereunder for Cause at any time upon notice to the Executive setting forth in reasonable detail the nature of such Cause. The following, as determined by the Board in its reasonable judgment, shall constitute Cause for termination:

 

refusal or failure to perform (other than by reason of disability), or material negligence in the performance of the Executive’s duties and responsibilities to the Company or its Affiliates, which refusal or failure to perform or material negligence is not cured within 30 days after written notice from the Company or such Affiliates;

 

commission of, indictment for, conviction of or plea of guilty or nolo contendere to a felony or any crime involving moral turpitude, fraud, embezzlement or theft;

breach of fiduciary duties (including a violation of the Company’s or any of its Affiliate’s code of ethics) on the part of the Executive;

 

gross negligence or willful misconduct in the performance of employment, which negligence or misconduct is not cured within 30 days after written notice from the Company, and which willful act or misconduct could reasonably be expected to be injurious to the financial condition or business reputation of the Company or any of its Affiliates;

 

the material breach by Executive of any provision of any agreement to which such Executive and the Company or any or its Affiliates are party; or

 

breach by the Executive of the terms of Exhibit A of the Executive’s Unit Award Agreement, as in effect from time to time (the “Restrictive Covenants”).

 

Upon the giving of notice of termination of the Executive’s employment hereunder for Cause, the Company shall have no further obligation to the Executive, other than for his Final Compensation.

 

By the Company Other than for Cause.

 

The Company may terminate the Executive’s employment hereunder other than for Cause at any time upon written notice to the Executive.

 

In the event of the Executive’s Separation from Service pursuant to this Section 5(d), in addition to Final Compensation, the Executive will be entitled to the following payments and benefits, provided that the Executive satisfies all conditions to such entitlement, including without limitation, continued compliance with the Restrictive Covenants and signing and returning to the Company a timely and effective Employee Release in accordance with subsection (iii) below:

 

Until the conclusion of a period of the twelve (12) months following the Termination Date, the Company shall continue to pay the Executive the Base Salary at the rate in effect on the Termination Date, and, subject to any employee contribution applicable to the Executive on the Termination Date, shall continue to contribute to the premium cost of the Executive’s participation in the Company’s group medical and dental plans, provided that the Executive is entitled to continue such participation under applicable law and plan terms.

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Executive shall be paid any annual bonus compensation awarded for the fiscal year immediately preceding the year in which termination of employment occurs, but unpaid on the Termination Date.  Such bonus shall be payable in the year of the Termination Date at the same time as bonuses are paid to Company executives generally; provided, however, that if paying such amount on the date on which bonuses are paid to Company executives generally would result in an additional tax on the Executive or his estate under Section 409A, then such bonus shall be payable no later than June 15 of the year of Termination Date.

 

Any obligation of the Company to the Executive hereunder, other than for his Final Compensation, is conditioned, however, on the Executive’s timely and effective execution of the form of release included with this Agreement as Exhibit A, by the deadline specified therein (any such release submitted by such deadline, the “Employee Release”) and delivering it to the Company not later than the deadline specified therein, which shall not be later than the sixtieth (60th) calendar day following the date of his Separation from Service.  Subject to Section 5(g) below, severance pay to which the Executive is entitled hereunder shall be payable in accordance with the normal payroll practices of the Company, with the first payment, which shall be retroactive to the day immediately following the Termination Date, being due and payable on the Company’s next regular payday for executives that follows the expiration of sixty (60) calendar days from the Termination Date. The Release of Claims required for separation benefits in accordance with this Section 5(d) or Section 5(e) creates legally binding obligations on the part of the Executive and the Company therefore advises the Executive to seek the advice of an attorney before signing it.

 

By the Executive for Good Reason.

 

The Executive may terminate his employment hereunder for Good Reason (A) by providing notice to the Company specifying in reasonable detail the condition giving rise to the Good Reason no later than thirty (30) days following the occurrence of that condition; (B) by providing the Company a period of thirty (30) days to remedy the condition and so specifying in the notice and (C) by terminating his employment for Good Reason within thirty (30) days following the expiration of the period to remedy if the Company fails to remedy the condition.

 

For purposes of this Agreement, “Good Reason” shall mean the occurrence of any one or more of the following conditions without the Executive’s consent:  (A) a material adverse change in the Executive’s responsibilities, duties and/or authority that, taken as a whole, constitutes a breach of Section 3(a) hereof and effectively constitutes a demotion; provided, however, that the failure to continue the Executive’s appointment or election as a member of the Board or director or officer of Holdings or any of its Affiliates, a change in reporting relationships resulting from a reorganization of Holdings or the Company or from a change in the direct or indirect control of the Company (or a successor corporation) by another corporation and any diminution of the business of the Company or any of its Affiliates or any sale or transfer of equity, property or other assets of Holdings, the Company or any of their Affiliates shall not constitute “Good Reason,”  (B)  material diminution in the Base Salary, or (C) requiring Executive to relocate outside Lake Elmo, Minnesota.

 

In the event of a Separation from Service in accordance with this Section 5(e), and provided that no benefits are payable to the Executive under a separate severance agreement or an executive severance plan as a result of such termination or, if any such benefits are payable, that the Executive waives his rights thereto, then, in addition to Final Compensation, the Executive will be entitled to the severance benefits provided in Section 5(d)(ii) above; provided that the Executive satisfies all conditions to such entitlement, including without limitation the signing and return to the Company of a timely and effective Employee Release in accordance with Section 5(d)(iii) above.

 

By the Executive Other than for Good Reason.  The Executive may terminate his employment hereunder at any time upon thirty (30) days’ notice to the Company. In the event of the Executive’s termination of employment pursuant to this Section 5(f), the Company may elect to waive all or any part of the period of notice, and, if the Company so elects, the Company will pay the Executive his Base Salary for portion of the notice period so waived.  The Company shall have no further obligation to the Executive, other than for his Final Compensation.

 

Timing of Payments; Definition of “Separation from Service.” If at the time of the Executive’s Separation from Service the Executive is a “specified employee,” as hereinafter defined, any and all amounts payable under this Section 5 in connection with such Separation from Service that constitute deferred compensation subject to Section 409A, as determined by the Company in its sole discretion, and that would (but for this sentence) be payable within 

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six months following such Separation from Service, shall instead be paid on the date that follows the date of such Separation from Service by six (6) months. For purposes of this Agreement, “Separation from Service” (and correlative terms such as “Separate from Service”) shall mean a “separation from service” as defined in Treas. Regs. § 1.409A-1(h), and the term “specified employee” shall mean an individual determined by the Company to be a specified employee under Treas. Regs. § 1.409A-1(i).

 

Effect of Termination.  The provisions of this Section 6 shall apply to any termination of the Executive’s employment hereunder.

 

Other than as described in Sections 5(d) and 5(e), above, payment by the Company of any Base Salary and contributions to the cost of the Executive’s continued participation in the Company’s group health and dental plans that may be due the Executive shall constitute the entire obligation of the Company to the Executive.  Other than as described in Section 5(d)(ii), above, medical, dental and other benefits shall terminate pursuant to the terms of the applicable benefit plans based on the date of the Executive’s Separation from Service without regard to any continuation of Base Salary or other payment to the Executive following such Separation from Service, except for any right of the Executive to continue participation pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) or other applicable law.

 

Provisions of this Agreement shall survive any Separation from Service if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation the obligations of the Executive under Section 7 hereof and the Restrictive Covenants.  The obligation of the Company to make payments to or on behalf of the Executive under Section 5(d), 5(e) hereof is expressly conditioned upon the Executive’s continued full performance of his obligations under the Restrictive Covenants. The Executive recognizes that, except as expressly provided in Section 5(d) or 5(e), no compensation is earned after the Termination Date.  The Executive’s right to receive and retain the payments provided under Section 5(d) or 5(e) hereof (other than for his Final Compensation) are expressly conditioned on his continued compliance with his obligations under the Restrictive Covenants and Section 7 hereof.

 

Non-Disparagement.  The Executive shall not make or induce other persons or entities to make any negative statements about the Company, its Affiliates, employees, past or present officers, directors, managers, products, services, businesses or reputation. Notwithstanding the foregoing, truthful statements made in the course of sworn testimony in administrative, judicial or arbitral proceedings (including, without limitation, depositions taken in connection with such proceedings) shall not be subject to this Section 7.

 

Withholding.  All payments made by the Company under this Agreement shall be reduced by any tax or other amounts required to be withheld by the Company under applicable law.

 

Indemnification.  The Company and the Executive shall, as soon as practicable following and contingent upon the occurrence of the Exchange (as defined below), enter into a directors and officers indemnification agreement substantially in the form attached hereto as Exhibit B, which shall provide coverage to the Executive effective as of the closing of the transactions contemplated by that certain Share Contribution & Exchange Agreement by and among Skyline Corporation and Champion Enterprises Holdings, LLC, made and entered into as of January 5, 2018 (the “Exchange”).

 

Assignment.  Except as is specifically set forth below, neither the Company nor the Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement without the consent of the Executive in the event that the Executive is transferred to a position with any of the Affiliates, or in the event that the Company shall hereafter effect a reorganization, consolidate with, or merge into, any Person or transfer all or substantially all of its properties or assets to any Person.This Agreement shall inure to the benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators, heirs and permitted assigns.

 

Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, 

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and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

Notices.  Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person, consigned to a reputable national courier service or deposited in the United States mail, postage prepaid, registered or certified, and addressed to the Executive at his last known address on the books of the Company or, in the case of the Company, at its principal place of business, attention of the Chair of the Board, or to such other address as either party may specify by notice to the other actually received.

 

Entire Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes all prior communications, agreements and understandings, written or oral, with respect to the terms and conditions of the Executive’s employment.

 

Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by an expressly authorized representative of the Company.

 

Headings. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement.

 

Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

 

Governing Law.  This is a Michigan contract and shall be construed and enforced under and be governed in all respects by the laws of the State of Michigan without regard to the conflict of laws principles thereof.

 

Definitions.

 

“Affiliate” means, with respect to any specified Person at any time, any other Person that directly or indirectly controls, or is controlled by, or is under common control with, such specified Person at such time.

 

“Class C Units” means the units of interests in Holdings designated as “Class C Units” and having the relative rights, preferences, privileges, limitations and qualifications set forth in Holdings’ Second Amended and Restated Limited Liability Company Agreement, Holdings’ 2011 Management Incentive Plan (each, as in effect from time to time) and, in the case of each Class C Unit, the applicable award agreement pursuant to which such Class C Unit was granted.

 

“Person” means any natural person, corporation, limited liability company, partnership, trust, joint stock company, business trust, unincorporated association, joint venture, governmental authority or other legal entity of any nature whatsoever.

 

 

[Signature page follows immediately.]

 

 

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IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Company, by its duly authorized representative, and by the Executive, as of the date first above written.

 

	
THE EXECUTIVE:
	
 
	
THE COMPANY

 

By: --

Title: Senior Vice President and General Counsel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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TN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Company, by its duly authorized representative, and by the Executive, as of the date first above written.

 

	
THE EXECUTIVE:
	
 
	
THE COMPANY

 

 

By:

Title: Senior Vice President and General Counsel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT A

RELEASE OF CLAIMS

FOR AND IN CONSIDERATION OF the payments to be provided me in connection with the termination of my employment under the applicable provision of Section 5 of the amended and restated agreement between me and Champion Home Builders, Inc. (the “Company”) dated as of June 4, 2018 (the “Agreement”), which are conditioned on my signing this Release of Claims and to which I am not otherwise entitled, I, on my own behalf and on behalf of my heirs, executors, administrators, beneficiaries, representatives and assigns, and all others connected with or claiming through me, hereby release and forever discharge the Company, its subsidiaries and other Affiliates and all of their respective past, present and future officers, directors, managers, trustees, shareholders, employees, agents, general and limited partners, members, managers, joint venturers, employee benefits plans, representatives, successors and assigns, and all others connected with any of them, both individually and in their official capacities, from any and all causes of action, rights or claims of any type or description, known or unknown, which I have had in the past, now have, or might now have, through the date of my signing of this Release of Claims, in any way resulting from, arising out of or connected with my employment by the Company or any of its subsidiaries or other Affiliates or the termination of that employment or pursuant to any federal, state or local law, regulation or other requirement (including without limitation Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the fair employment practices laws of the state or states in which I have been employed by the Company or any of its subsidiaries or other Affiliates, each as amended from time to time).

 

Excluded from the scope of this Release of Claims is (i) any claim arising under the terms of the Agreement after the effective date of this Release of Claim, (ii) any right of indemnification or contribution that I have pursuant to the Articles of Incorporation and/or By-Laws of the Company or any of its subsidiaries or other Affiliates, (iii) any right of indemnification or contribution that I have pursuant to any Directors & Officers indemnification or ERISA insurance policies secured by the Company or any of its subsidiaries or other Affiliates, (iv) any whistleblower or anti-retaliation law, each as may have been or may be amended, and (v) any other claims which are, by law, not waivable.

 

In signing this Release of Claims, I acknowledge my understanding that I may not sign it prior to the termination of my employment, but that I may consider the terms of this Release of Claims for up to twenty-one (21) days (or such longer period as the Company may specify) from the later of the date my employment with the Company terminates or the date I receive this Release of Claims, provided that this Release of Claims, signed and dated by me, is received not later than the sixtieth (60th) day following the date my employment with the Company terminated by the person designated under the Agreement to receive notices on behalf of the Company in order for me to qualify for benefits under the applicable provision of Section 5 of the Agreement. I also acknowledge that I am advised by the Company and its subsidiaries and other Affiliates to seek the advice of an attorney prior to signing this Release of Claims; that I have had sufficient time to consider this Release of Claims and to consult with an attorney, if I wished to do so, or to consult with any other person of my choosing before signing; and that I am signing this Release of Claims voluntarily and with a full understanding of its terms.

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I further acknowledge that, in signing this Release of Claims, I have not relied on any promises or representations, express or implied, that are not set forth expressly in the Agreement.  I understand that I may revoke this Release of Claims at any time within seven (7) days of the date of my signing by written notice to the person designated under the Agreement to receive notices on behalf of the Company and that this Release of Claims will take effect only upon the expiration of such seven-day revocation period and only if I have not timely revoked it.

 

Intending to be legally bound, I have signed this Release of Claims under seal as of the date written below.

 

	
Signature:  
	
 
	
 

	
 
	
 
	
 

	
Name (please print):  
	
 
	
 

	
 
	
 
	
 

	
Date Signed:  
	
 
	
 

 

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EXHIBIT B

INDEMNIFICATION AGREEMENT

- 12 -Exhibit
10.1

 

	*	CERTAIN IDENTIFIED INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN EXCLUDED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE
HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.

 

Supply
and License Agreement

(With
Sub-License & Packaging Rights)

 

This
SUPPLY AND LICENSE AGREEMENT (this “Agreement”) is entered into as of May 1, 2020 (“Effective
Date”) by and between Pure Bioscience, Inc., a Delaware corporation with its principal place of business at 9669
Hermosa Avenue, Rancho Cucamonga, CA 91730, hereinafter (“Supplier” or “PURE” or “Pure”),
and Packers Sanitation Services, Inc., an Ohio corporation with its principal place of business at 3681 Prism Lane, Kieler,
WI 53812, hereinafter (“Licensee”), each referred to as “Party” and collectively as “Parties.”

 

 General

 

WHEREAS,
PURE is engaged in the development and commercialization of certain proprietary patented antimicrobial technology known as silver
dihydrogen citrate (“SDC”) products;

 

WHEREAS,
Licensee wishes to purchase certain SDC products and has the relevant know-how needed to package and distribute an EPA (defined
below) registered SDC-based antimicrobial for use to consumers, dealers, retailers and end users;

 

WHEREAS,
Licensee assures PURE that it has the resources including but not limited to the capital, facilities, personnel, and technical
expertise necessary to package, market and distribute its intended product(s) in the Territory, Field of Use and Distribution
Channel (each as defined below); and

 

WHEREAS,
the Licensee wishes to obtain from PURE, and PURE is willing to grant to Licensee, the specific rights to sell EPA registered
product(s) containing SDC in the Territory, Field of Use, and Distribution Channel pursuant to certain requirements and contract
terms.

 

THEREFORE,
in consideration of the mutual promises, covenants, and agreements made below, the Parties, intending to be legally bound,
agree as follows:

 

	1.	Definitions

 

For
purposes of this Agreement, the following terms will have the indicated definitions:

 

	 	1.1.	“Agreement”
    has the meaning set forth in the preamble to this Agreement.
	 	 	 
	 	1.2.	“Distribution
    Channel” shall mean a type of business (i.e., retail, commercial) as identified in Exhibit A hereto.
	 	 	 
	 	1.3.	“EPA”
    shall mean the United States Environmental Protection Agency.
	 	 	 
	 	1.4.	“FDA”
    shall mean the Food and Drug Administration.

 

    	 

     

    

 

	 	1.5.	“Field
    of Use” shall mean, with respect to Licensed Product(s), the type of industry which the Licensed Product(s) are
    limited to or excluded as identified in Exhibit A hereto.
	 	 	 
	 	1.6.	“Governmental
    Authority” shall mean any federal, state, local or foreign government or political subdivision thereof, or any agency
    or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental
    regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization
    or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.
	 	 	 
	 	1.7.	“Intellectual
    Property Rights” shall mean all: (a) Patent Rights; (b) Trademarks (including the Pure Marks); (c) internet domain
    names, whether or not Trademarks, registered by any authorized private registrar or Governmental Authority, web addresses,
    web pages, website, and URLs; (d) works of authorship, expressions, designs and design registrations, whether or not copyrightable,
    including copyrights and copyrightable works, software and firmware, application programming interfaces, architecture, files,
    records, schematics, data, data files, and databases and other specifications and documentation; (e) Trade Secrets; (f) semiconductor
    chips, mask works and the like; and (g) all industrial and other intellectual property rights, and all rights, interests and
    protections that are associated with, equivalent or similar to, or required for the exercise of, any of the foregoing, however
    arising, in each case whether registered or unregistered and including all registrations and applications for, and renewals
    or extensions of, such rights or forms of protection pursuant to the laws of any jurisdiction throughout in any part of the
    world.
	 	 	 
	 	1.8.	“Know-How
    Rights” shall mean, collectively, Pure’s rights, data sets, and other know-how regarding the Patent Rights
    that is necessary for Licensee to use the Product(s) as a raw material to manufacture, package, promote, advertise, distribute
    and sell Licensed Product(s).
	 	 	 
	 	1.9.	“Licensed
    Product(s)” shall mean, Licensee’s EPA registered product(s) containing SDC manufactured for Licensee for
    use in the Territory in the applicable Field of Use.
	 	 	 
	 	1.10.	“Packaging
    Rights” shall mean entitlement for only specially approved Licensees per Exhibit “C” hereto, to facilitate
    the distribution and manufacturing process of Product(s) by way or re-packaging bulk RTU (Ready-to-Use) into approved labeled
    containers, then sold and distribution by Licensee.
	 	 	 
	 	1.11.	“Patent
    Rights” shall mean (a) the patents and patent applications (including, in each case, divisionals, continuations,
    continuations-in-part, reissues, renewals, extensions or additions thereof) that are owned or controlled by Pure or any of
    its affiliates that are necessary for Licensee to manufacture, market and distribute the Licensed Product(s) and (b) all additional
    patent applications (including divisionals, continuations, continuations-in-part, reissues, renewals, extensions or additions
    thereof) based on or relating to the patents and patent applications set forth in clause (a).
	 	 	 
	 	1.12.	“Product(s)”
    shall be the product as defined in Exhibit A hereto, which is used by Licensee as a raw material to manufacture Licensee’s
    EPA registered Licensed Products.
	 	 	 
	 	1.13.	“Pure
    Marks” shall mean, collectively, (a) “Pure Bioscience”, (b) “Powered by SDC®”, and (c)
    any Trademarks owned or licensed by Pure that are not to be used by Licensee without Pure’s prior written consent.
	 	 	 
	 	1.14.	“SDC”
    has the meaning set forth in the recitals to this Agreement.
	 	 	 
	 	1.15.	“SDX”
    shall mean Pure’s patented silver ion technology including the substitution or combination of citric acid with one
    or more other organic acid(s).
	 	 	 
	 	1.16.	“Territory”
    shall mean the land or region Licensee may market or sell the Licensed Product(s) in as stated in Exhibit A hereto.
	 	 	 
	 	1.17.	“Trademarks”
    means all rights in and to U.S. and foreign trademarks, service marks, trade dress, trade names, brand names, logos, symbols,
    trade dress, corporate names and domain names and other similar designations of source, sponsorship, association or origin,
    together with the goodwill symbolized by any of the foregoing, in each case whether registered or unregistered and including
    all registrations and applications for, and renewals or extensions of, such rights and all similar or equivalent rights or
    forms of protection in any part of the world.

 

    	 	2	 

     

    

 

	 	1.18.	“Trade
    Secrets” means all inventions, discoveries, trade secrets, business and technical information and know-how, databases,
    data collections, patent disclosures and other confidential and proprietary information and all rights therein.
	 	 	 
	 	1.19.	“USDA”
    shall mean the United States Department of Agriculture.

 

	2.	License
                                         and Term

 

	 	2.1.	License.
    On the terms and conditions of this Agreement, Pure hereby grants Licensee during the Term a non-transferable, license
    to use the Product(s) as a raw material to package, promote, advertise, distribute, and sell Licensed Product(s) solely in
    the Territory in the applicable Field of Use. In addition, Pure hereby grants Licensee during the Term an exclusive, revocable
    license to distribute and sell Licensed Product(s) solely as set forth in Exhibit A, which is contingent on Licensee meeting
    the Minimum Purchase Volume obligations set forth in Exhibit B. Licensee shall not distribute, sell or supply to any third
    party the raw material known as SDC or Axenohl®. Licensee understands, acknowledges and agrees that other non-exclusive
    licensees now do or will in the future directly compete within the Territory and Field of Use for sales of SDC products. Pure
    may revise Exhibit A to delete discontinued Products upon thirty (30) days prior written notice to Licensee.
	 	 	 
	 	2.2.	Sub-Licenses.
    The Licensee shall have the limited right to appoint one or more sub-licensees (each, a “Sub-Licensee”)
    to promote, advertise, distribute, and sell Licensed Product(s) solely in the Territory in the applicable Field of Use. Each
    Sub-Licensee must be preapproved in writing by Pure before Licensee enters into any agreement to sell Pure’s Product(s)
    to a Sub-Licensee. Licensee agrees that it shall be fully responsible for each Sub-Licensee’s acts or omissions and
    shall ensure each Sub-Licensee (a) complies with the terms and conditions of this Agreement to the same extent as if such
    Sub-Licensee were an original signatory hereto and (b) agrees in advance in writing to be bound by such terms and conditions
    pursuant to a written agreement (in English) reasonably acceptable to Pure to which Pure is expressly designated as a third
    party beneficiary. Licensee shall deliver to Pure a fully-executed copy of the agreement described in clause (b) of the previous
    sentence within three (3) business days after Sub-Licensees enters into such agreement. Licensee shall reimburse Pure for
    any legal or accounting fees that it incurs as a result of any breach by a Sub-Licensee of this Agreement. Licensee shall
    immediately notify Pure in writing of any breach by a Sub-Licensee of this Agreement, including but not limited to a Sub-Licensee
    (i) reselling Licensed Product(s) outside of its applicable Territory, Field of Use or Distribution Channel, (ii) using Pure’s
    Intellectual Property Rights, Know-How Rights or Patent Rights for any use other than to the extent necessary to use the Product(s)
    as a raw material to package, promote, advertise, distribute, and sell Licensed Product(s) in the applicable Territory, Field
    of Use or Distribution Channel, or (iii) reverse engineering any Product(s) or other Pure technology, or determining or attempting
    to determine the composition, production or characteristics thereof. If Licensee becomes aware of an actual or alleged violation
    of this Agreement by a Sub-Licensee, the Licensee shall cure such violation within a commercially reasonable period of time
    but in no event later than thirty (30) days thereafter. Without limiting the generality of the foregoing, in the event of
    such violation by a Sub-Licensee, the Licensee shall (i) immediately notify Sub-Licensee in writing of any such violation,
    (ii) conduct an investigation of any such violation, and (iii) suspend further transfer of Product(s) to Sub-Licensee for
    so long as such violation is not promptly cured to Pure’s satisfaction. Licensee and Sub-Licensee shall jointly develop
    and maintain a recall plan which incorporates lot tracing to all end users.

 

	 	2.3.	Intentionally
    Omitted.
	 	 	 
	 	2.4.	Term.
    This Agreement shall commence on the Effective Date and shall terminate on May 1, 2021 (“Initial Term”),
    unless terminated sooner in accordance with the provisions of this Agreement.

 

    	 	3	 

     

    

 

	 	2.5.	Option(s)
    to Extend. Licensee may, at its option upon written notice to Supplier provided at least sixty (60) days prior to the
    expiration of the Initial Term or any renewal term, extend the term of this Agreement in one (1) year increments (each, a
    “Renewal Term” and, together with the Initial Term, the “Term”) to a maximum of five
    (5) years dating from the Effective Date. These Licensee “options” to extend the term of this Agreement are expressly
    conditioned, with respect to each particular extension, upon the Licensee being in material compliance with the terms of this
    Agreement as of the date on which it delivers an extension notice under this Section.

 

	3.	Intellectual
                                         Property Rights

 

	 	3.1.	Use
    of Trademarks and Trade Names. No right, title or interest in or to any PURE Trademarks, trade names, slogans, labels
    and/or designs used by either the Supplier or the Licensee, nor the goodwill connected therewith is conveyed by this Agreement.
    Licensee may market and sell the Licensed Product(s) under Licensee’s and Supplier’s respective Trademark(s),
    but only as set forth on Exhibit A hereto. Licensee may apply to utilize other licensee Trademarks to sell the Licensed Product(s)
    with Supplier’s prior written consent, and the Parties shall amend Exhibit A to include any such additional Trademarks
    as necessary during the Term. Any Supplier’s Trademarks which have not been granted for Licensee’s specific use,
    and applied to Licensed Product by Pure, shall solely be used for the bulk packaging, in connection with the shipping or exporting
    of the Product(s) to the Territory as may be required by a governing body and shall not be for any other use. Licensee shall
    not (a) use any Supplier Trademarks, or any mark or name confusingly similar thereto, as part of a corporate or business name
    or in any other manner, or (b) register any Trademark or trade name (including any company name) which is identical to or
    confusingly similar to or incorporates any Trademark or trade name which PURE or any associated company owns or claims rights
    in. Any goodwill associated with any PURE Trademark affixed or used in connection with the Licensed Product(s) shall accrue
    to the sole benefit of PURE. Nothing in this Agreement shall create an obligation for PURE to register or otherwise maintain
    in force any marks.
	 	 	 
	 	3.2.	Marketing
    and Resale Right Only. Licensee is authorized to market the Product(s) only in the form and packaging as authorized by
    Supplier to Licensee. Other than the express licenses granted by this Agreement, Supplier grants no right or license to Licensee
    by implication, estoppel, or otherwise to the Product(s) or any of Pure’s Intellectual Property Rights. To the extent
    that License translates or causes to be translated, any of Pure’s marketing materials, user manuals, or other documentation,
    Licensee hereby irrevocably assigns all copyrights in such translations to Pure, subject to a non-exclusive, non-transferable,
    and non-sublicensable license to Licensee, hereby granted by Pure, to use such translations in the Territory during the Term
    solely on or in connection with the promotion, advertising, resale, or use of the Product(s) permitted under this Agreement.
	 	 	 
	 	3.3.	Technology
    and Patent Rights. PURE shall be the sole and exclusive owner of all Intellectual Property Rights. Licensee hereby irrevocably
    quitclaims and/or forever assigns to PURE all right, title and interest in and to the Intellectual Property Rights whether
    now in existence or hereinafter arising as between PURE and Licensee, all right, title and interest in all discoveries and
    inventions derived from the use of the Intellectual Property Rights hereunder or the activities otherwise contemplated by
    this Agreement (or otherwise) shall be owned solely by PURE. Licensee hereby represents and warrants that all employees and
    others acting on its behalf in performing its obligations or exercising its rights hereunder shall be obligated under a binding
    written agreement to quitclaim and/or forever assign to PURE all discoveries and inventions derived from the use of the Intellectual
    Property Rights hereunder or the activities otherwise contemplated by this Agreement conceived by such employees or others.
    PURE shall, at its sole expense and in its unfettered discretion, prepare, file, prosecute and maintain Patent Rights and
    Pure Marks in the United States and the Territory. PURE shall have the sole right, at its expense and at its sole unfettered
    option, to enforce Patent Rights and Pure Marks, as well as to retain all proceeds therefrom. Notwithstanding anything to
    the contrary herein, Licensee stipulates it has no rights respecting the Intellectual Property Rights.

 

    	 	4	 

     

    

 

	 	3.4.	No
    Copying. The Licensee shall in no event directly or indirectly copy, reverse engineer, or otherwise “pirate”
    the Product(s).
	 	 	 
	 	3.5.	Notification
    of Suspected Third-Party Infringement. Licensee shall promptly notify the Supplier of any determination, discovery, or
    notification that any person or entity is or may be infringing the Intellectual Property Rights of the Supplier. Supplier
    shall have the sole right, at its expense, to enforce Intellectual Property Rights and to retain all proceeds therefrom. Licensee
    shall not take any affirmative legal action relating to the protection or defense of any Intellectual Property Rights pertaining
    to the Product(s) without the prior written approval of Supplier. At the specific written request of Supplier, Licensee shall
    assist in the protection and defense of such Intellectual Property Rights, and Supplier agrees to reimburse Licensee for all
    out of pocket expenses previously approved in writing by Supplier.
	 	 	 
	 	3.6.	Licensee
    SDX Research and/or Patent Prosecution. Without prior written permission of PURE, Licensee stipulates that it has no authority
    and is hereby forbidden during the Term and for a period of ten (10) years thereafter from engaging in any research/development
    and/or patent prosecution respecting any and all PURE Intellectual Property Rights. All data, test results, information, discoveries
    and knowledge, and any summaries, comparative studies, analyses or derivatives thereof, obtained by Licensee from use, investigation,
    analysis or testing of the SDX material (“SDX Data”) will become the sole property of PURE. Licensee will
    promptly and fully disclose all SDX Data to PURE. Licensee shall not disclose or publish SDX Data, and shall have no right
    to provide, disclose or convey SDX Data to any person or entity outside of Licensee for any purpose whatsoever without the
    prior written approval of PURE. Licensee further agrees not to file any patent applications or seek any patent protection,
    copyright registration or applications for government approvals which disclose SDX Data or relate to discoveries developed,
    suggested or confirmed through Licensee’s use, investigation, analysis or testing of the SDX material.

 

	 	3.6.1.	Licensee
    agrees to grant, and does hereby grant, to PURE an exclusive, world-wide, royalty-free license with the right to sublicense
    to any patents, Trade Secret or any other proprietary rights which Licensee may obtain for itself or receive from others which
    would prevent PURE from making, using, selling, importing, offering for sale any product containing SDX for any purpose in
    any country, or would prevent PURE from transferring the right to make, use, sell, import, offer for sale SDX for any purpose
    in any country, to any other person or entity.
	 	 	 
	 	3.6.2.	Each
    Party acknowledges and agrees that SDX is a proprietary product, the sole rights to which are owned by PURE and that any unauthorized
    manufacture, use, sale, offer for sale or importation of the claimed product, whether for commercial or research purposes,
    constitutes patent infringement. Further, each Party acknowledges and agrees that confidential information and Trade Secrets
    relating to SDX in the possession of PURE is a valuable asset of PURE, the public disclosure or dissemination of which would
    materially injure PURE and constitute an interference with its business.
	 	 	 
	 	3.6.3.	Licensee
    acknowledges and agrees that in the event of any breach or threatened breach of this agreement by Licensee, including but
    not limited to breach of Sections 3.5.1 and 3.5.2, PURE will suffer an irreparable injury, such that no remedy at law will
    afford it adequate protection against, or appropriate compensation for, such injury. Accordingly, Licensee agrees that PURE
    will be entitled to specific performance of the Licensee’s obligations under this Agreement as well as such injunctive
    and other relief as may be granted by a court, or other forum, of competent jurisdiction. Should Licensee file or come into
    possession of any patent rights subject to conveyance or license to PURE under Sections 3.5.1 or 3.5.2, Licensee shall grant
    and convey, and does hereby grant and convey, such patent rights to PURE and agrees to take all steps necessary to perfect
    such rights in PURE.

 

	 	3.7.	Reservation
    of Rights. The Supplier specifically reserves the right to commence and/or to continue to market and sell the Licensed
    Product(s) under its own label within the Territory, the Field of Use and elsewhere. The Parties intend that this Agreement
    shall not restrict PURE’s freedom to develop and commercialize any and all of PURE’s SDC products. Only licenses
    and rights expressly granted herein shall be of legal force and effect. No license or other right shall be created hereunder
    by implication, estoppel or otherwise. Licensee acknowledges that (a) PURE currently is engaged, and in the future anticipates
    that it will engage, in the research, development, manufacture and commercialization of SDC products on its own behalf and
    in collaboration with third parties, and in the grant of licenses and other rights to third parties to do the same; and (b)
    PURE shall have the unrestricted right, and nothing in this Agreement shall preclude or limit PURE’s right, to exploit
    PURE’s Intellectual Property Rights.

 

    	 	5	 

     

    

 

	4.	Licensee’s
                                         Representations, Warranties and Covenants. Licensee represents and warrants and agrees
                                         to the following:

 

	 	4.1.	Due
    Authorization; Compliance with Laws. The Licensee is duly organized, validly existing and in good standing under the laws
    of the jurisdiction in which it is organized. The Licensee has the requisite power and authority and the legal right to enter
    into this Agreement and to perform its obligations hereunder. All necessary consents, approvals and authorizations of all
    Governmental Authorities and other persons or entities require to be obtained by Licensee in connection with this Agreement
    have been obtained. The Licensee shall comply with all regulatory and legal requirements imposed by any applicable Governmental
    Authority and shall in every event obey all laws. Licensee shall obtain all regulatory approvals to market the Licensed Product(s)
    in the Territory as expeditiously as possible. In any applicable circumstances, without limitation, Licensee shall faithfully
    abide with local, state, federal, or international environmental rules and regulatory agencies. Licensee will abide by all
    aspects of the Federal Insecticide, Fungicide and Rodenticide Act. For Licensed Product(s) sold for use outside of the United
    States, Licensee will follow applicable regulatory requirements in said foreign jurisdiction(s).
	 	 	 
	 	4.2.	Licensed
    Product Data. Except as otherwise set forth in this Agreement, Licensee shall be solely responsible, at its cost, for
    regulatory approval and commercialization of the Licensed Product(s) in the Territory and the Field of Use. At the sole expense
    of Licensee, Supplier will provide reasonable technical assistance and training regarding the use of the Product(s). Supplier
    will provide Licensee with written authorization to cite all data necessary for the Territory and Field of Use on file with
    the EPA to support EPA registration of such data and information regarding the SDC component of the Licensed Product(s) in
    the control of Supplier, to the extent Supplier has the right to provide such data and information. Notwithstanding anything
    to the contrary in this Agreement, Supplier shall have no obligation to provide Licensee with any technology, data or information
    related to the manufacture of SDC. All product data described in this Section is identified as Confidential Information and
    Licensee must protect this data as per Section 11 of this Agreement.
	 	 	 
	 	4.3.	Sales
    and Reporting. Licensee shall use reasonable best efforts to maximize sales of the Licensed Product(s) in the Territory.
    Licensee shall keep complete and accurate records of the activities by Licensee to package, promote, advertise, distribute,
    sell and otherwise commercialize the Licensed Product(s) in the Territory (and the results of such activities) for the purpose
    of complying with regulatory authorities (EPA, FDA, USDA and/or other regulatory agencies). Licensee shall be required to
    have lot number tracking of the Licensed Product(s) sold to its customers and must require any Sub-Licensee or reseller to
    do the same.
	 	 	 
	 	4.4.	Alliance
    Manager. Promptly following the Effective Date, Licensee shall appoint a person to act as its alliance manager to coordinate
    its activities under this Agreement. The alliance manager shall be the primary contact with respect to the activities under
    this Agreement. Licensee shall notify in writing the Supplier as soon as practicable upon making, and changing, this appointment.

 

	5.	Packaging
                                         Rights

 

	 	5.1.	Re-packaging.
    Licensee may re-package bulk RTU (Ready-to-Use) Product(s) purchased from Supplier at facilities registered with the EPA
    or its applicable foreign equivalent which have been preapproved by PURE. Such packaging and labeling must be conducted strictly
    in conformity with PURE’s packaging requirements and each and all of the technical protocols as designated in Exhibit
    “C” or those directed by PURE. No modification to such requirements and/or protocols shall be made without prior
    written approval of PURE.

 

    	 	6	 

     

    

 

 

	6.	Purchase
                                         Orders

 

	 	6.1.	Orders
    and Acceptance. Licensee may purchase Product(s) under this Agreement by submitting a firm purchase order to Pure. Purchase
    order cutoff time for first business day is 11:00 a.m. PST. Such purchase order shall be in writing, in a form reasonably
    acceptable to Pure and shall specify (a) the product identity using Pure’s item number, (b) the quantity of each product
    ordered, and (c) the place of delivery and the required delivery date therefore, which shall not be less than the required
    lead-time. No purchase order shall be binding on Pure until accepted and confirmed by Pure in writing. The terms of this Agreement
    shall supersede the terms of any purchase order or any other document submitted by Licensee to Pure. The lead-time for shipping
    shall not be less than as designated by Pure. All Product(s) shall be delivered Ex Works place of manufacture (Incoterms 2010).
    All Product(s) per the purchase order shall be available for pickup by the shipment date. Risk of loss shall pass to Licensee
    upon delivery by Pure to Licensee. Unless otherwise specified, Licensee shall pay all freight and carrier costs, packaging
    and container charges, shipping and handling charges, insurance charges, customs duties, taxes, fees and other charges levied
    by any Governmental Authority in connection with the sale and transport of each Product(s) to Licensee. PURE shall manufacture
    (or have manufactured), sell and deliver to Licensee all Product(s) required by Licensee as long as Licensee is in strict
    compliance with all the terms of this Agreement and has timely and properly forecast the Product(s) requirements according
    to Section 6.2. Licensee shall use the Product(s) solely for the purpose of this Agreement, and for no other purpose.
	 	 	 
	 	6.2.	Licensee
    Forecasts. For each calendar quarter following the Effective Date, Licensee shall in good faith and with due diligence
    provide to PURE a four-quarter rolling forecast for Licensee’s Product(s) quantity needs. Unless and until Licensee
    applies under Section 2.5 to extend the term of this Agreement, the referenced forecasts shall be non-binding and informational
    in nature. Thereafter, and during the entirety of any extended term of this Agreement, Licensee shall be required to purchase
    not less than [ * ] of the forecasted quantity of Product(s) for the first quarterly period in each of the required rolling
    four-quarter forecasts.
	 	 	 
	 	6.3.	Cancellation
    of Orders. Once an order has been accepted by the Supplier, it may not be canceled by the Licensee.
	 	 	 
	 	6.4.	Freight
    and Tax Charges. The Licensee must designate in writing, not less than five (5) business days prior to the shipment date,
    the carrier for shipment and the amount of insurance and nature of coverage in connection with the shipment and delivery of
    the Product(s). The Licensee must designate a specific carrier for shipment at Supplier’s designated shipment location
    and at Supplier’s designated time. If the Licensee fails to so designate or provide any or all such items, the Supplier,
    at its sole discretion, may specify any item not so designated and the Licensee shall forthwith reimburse the Supplier for
    all such additional sums upon invoice.
	 	 	 
	 	6.5.	Packaging.
    Supplier sells and delivers Product(s) in Supplier’s standard packaging. In the event that Licensee requests specialty
    packaging, Licensee shall be responsible in advance for all costs related thereto.
	 	 	 
	 	6.6.	Warehousing.
    The Licensee may request that the Supplier ship or otherwise transfer to Licensee’s own warehouse, or to another warehouse
    owned by a third party. In any event, the Supplier’s shipment or transfer will constitute delivery to the Licensee.
    The Licensee shall procure insurance to cover risk of damage or loss to these shipments while in the warehouse or in transit.
    The Licensee shall reimburse the Supplier for all costs incurred by the Supplier, including but not limited to insurance premiums
    and transportation charges.
	 	 	 
	 	6.7.	Rejection
    and Returns. If a shipment of any Product(s) or any portion thereof is not in conformance with the applicable specifications,
    then the Licensee shall have the right to reject such shipment of Product(s) if the entire shipment is nonconforming, or the
    portion thereof that fails to so conform, as the case may be. The Licensee shall give written notice to Pure of its rejection
    hereunder within ten (10) days after the Distributer’s receipt of such shipment, specifying the grounds for such rejection.
    Pure shall use its commercially reasonable efforts to cure such rejection or replace such nonconforming shipment of Product(s),
    or portion thereof, within forty-five (45) days after receipt of notice of rejection thereof.

 

    	 	7	 

     

    

 

NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THIS AGREEMENT,

THE
REPLACEMENT OF THE NONCONFORMING PRODUCT(S) OR PORTION THEREOF,

AS
APPLICABLE, BY PURE AS PROVIDED UNDER THIS SECTION SHALL BE THE

LICENSEE’S
SOLE AND EXCLUSIVE REMEDY FOR PURE’S DELIVERY OF

NONCONFORMING
PRODUCT(S).

 

	7.	Prices
    and Payments

 

	 	7.1.	Pricing.
    Pure shall invoice Licensee for each purchase using the most current price list provided to Licensee. [ * ] Licensee agrees
    to comply with the pricing restrictions set forth in Exhibit B hereto and shall ensure that each Sub-Licensee also complies
    with such pricing restrictions.
	 	 	 
	 	7.2.	Payment.
    Licensee shall pay all Pure invoices within thirty (30) days of receipt thereof. All prices are set forth in U.S. dollars
    and payments shall be in U.S. dollars.
	 	 	 
	 	7.3.	Taxes. The
    amount of any present or future sales, use, excise or other tax applicable to the sale or use of the products sold hereunder
    shall be paid by Licensee, or in lieu thereof Licensee shall provide Pure with a tax exemption certificate or similar document
    acceptable to such taxing authority. Licensee shall be responsible for any value added taxes, collections, sales (such as
    VAT or its equivalent) and excise taxes, mill assessment fees, other consumption taxes and customs duties to the extent added
    to the sales price and set forth separately as such in the total amount invoiced to Licensee’s sales under this Agreement.
	 	 	 
	 	7.4.	Late Payments.
    All payments due under this Agreement not received within the period due shall bear interest from the date they are due until
    the date they are paid in full at the rate of one and one-half percent (1.5%) per month or the maximum rate permitted by law,
    whichever is lower. If Licensee is delinquent in making payments then Licensee shall pay any and all reasonable costs, including
    attorneys’ fees, incurred by Pure in collecting any amounts owed under this Agreement.

 

	8.	Shipment, Risk
    of Loss and Delivery

 

	 	8.1.	Risk of Loss.
    Title to the Product(s) purchased under this Agreement will pass to the Licensee upon receipt of Product(s) by Licensee’s
    agent/carrier for shipment or upon the commencement of transfer of the Product(s) to a warehouse at the request of Licensee
    per Section 6.6 hereof. The Licensee specifically assumes the risk of loss and damage of the Product(s) upon receiving title
    thereto.
	 	 	 
	 	8.2.	Partial Shipments.
    The Supplier may make partial shipments of the Licensee’s orders. The Supplier shall use commercially reasonable efforts
    to meet the Licensee’s requested shipment schedules for the Product(s).
	 	 	 
	 	8.3.	Supplier’s
    Right to Withhold. Supplier reserves the right to withhold Product(s) shipments at any time in the event that sums payable
    by Licensee are past due.

 

	9.	Supplier’s Representations and Warranties;
    Limitation of Liability; Exclusive Remedy; Indemnification

 

	 	9.1.	No Implied Warranties.
    Except as set forth in Section 9.2, Supplier makes no warranty, expressed or implied, concerning the manufacture, sale and/or
    use of the Product(s).
	 	 	 
	 	9.2.	Product(s) Warranty
    Manufactured by Supplier. As of the date of shipment, Supplier specifically warrants to Licensee that the Product(s):
    (i) in all substantial ways conform to applicable United States EPA specifications and requirements; (ii) are free from defects
    in design, workmanship, materials and formulation; and (iii) comply in all material respects with the marketing materials
    provided to Licensee by Supplier.

 

THE
REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

    	 	8	 

     

    

 

	 	9.3.	Limitation of
    Remedies and Damages Cap. Supplier, as an exclusive remedy to Licensee for any breach of the Supplier’s Product(s)
    warranty in Section 9.2, may offer to replace defective Product(s) or portion thereof, as applicable. Should this “repair
    or replace” exclusive remedy fail of its essential purpose, Supplier shall have the right as an exclusive “back
    up” remedy to refund the purchase price paid by Licensee for the portion of the Product(s) shipment that is alleged
    to be defective. Notwithstanding the foregoing, the Supplier shall in no case (whether in contract, tort, or otherwise)
    be liable to Licensee for any amount in excess of $1,000,000.00. The Parties acknowledge that the prices for Product(s)
    and the other terms of this Agreement were entered into in consideration of the foregoing limitations of warranty, remedy
    and damage cap.
	 	 	 
	 	9.4.	No Consequential
    Damages. Notwithstanding anything in this Agreement to the contrary, Supplier shall not be liable to Licensee for any
    special, consequential (including claimed lost profits), exemplary, punitive or incidental damages under this Agreement or
    on any theory of law whatsoever.
	 	 	 
	 	9.5.	Indemnification.
    Subject to the terms and conditions of this Agreement, Licensee and its Sub-Licensees (each, an “Indemnifying
    Party”) shall indemnify, defend and hold harmless Pure and its representatives, officers, directors, employees,
    agents, affiliates, successors and permitted assigns (collectively, “Indemnified Parties”) against any
    and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties,
    fines, costs, or expenses of whatever kind, including reasonable attorneys’ fees, fees and the costs of enforcing any
    right to indemnification under this Agreement and the cost of pursuing any insurance providers incurred by any Indemnified
    Party relating to or resulting from any third-party claim or any direct claim against Indemnifying Party alleging: (a) a breach
    or non-fulfillment of any of Indemnifying Party’s representations, warranties, or covenants set forth in this Agreement;
    (b) any negligent or more culpable act or omission of Indemnifying Party or any of its representatives (including any recklessness
    or willful misconduct) in connection with Indemnifying Party’s performance under this Agreement; (c) any bodily injury,
    death of any person or damage to real or tangible personal property caused by the negligent acts or omissions of Indemnifying
    Party or any of its representatives; (d) any failure by Indemnifying Party or its personnel to comply with any applicable
    laws; or (e) that any of Indemnifying Party’s Intellectual Property Rights used in the design or production of SDC,
    or that is embodied in SDC, infringes any Intellectual Property Right of a third party. Indemnifying Party has no obligations
    under this Section with respect to claims to the extent arising out of: (i) any specifications, Product(s), manufacturing
    parts or other materials provided by any Indemnified Party; (ii) Indemnified Party’s marketing, advertising, promotion
    or sale of any product containing SDC; (iii) use of SDC, including use of SDC in combination with any products, materials
    or equipment supplied to Pure by a person other than Indemnifying Party or its authorized representatives, if the infringement
    would have been avoided by not using SDC or using SDC not so combined; (iv) any modifications or changes made to SDC by or
    on behalf of any person other than Indemnifying Party or its authorized representatives, if the infringement would have been
    avoided without such modification or change; or (v) goods (including SDC), products or assemblies manufactured or designed
    by Indemnified Party.
	 	 	 
	 	 	Subject to the terms
    and conditions of this Agreement, Pure shall indemnify, defend and hold harmless Licensee and its representatives, officers,
    directors, employees, agents, affiliates, successors and permitted assigns against any and all losses, damages, liabilities,
    deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever
    kind, including reasonable attorneys’ fees, fees and the costs of enforcing any right to indemnification under this
    Agreement and the cost of pursuing any insurance providers incurred by any Indemnified Party relating to or resulting from
    any third-party claim or any direct claim against Indemnifying Party alleging: (a) any negligent or more culpable act or omission
    of Pure (including any recklessness or willful misconduct) in connection with Pure’s performance under this Agreement;
    or (b) any failure by Pure or its personnel to comply with any applicable laws.

 

    	 	9	 

     

    

 

	10.	Termination

 

	 	10.1	Termination
    Events. Either Party may terminate this Agreement for material breach of any provision of this Agreement by the other
    Party, provided written notice of the breach has been given to the breaching Party and the breaching Party has not cured the
    breach within thirty (30) days after the delivery of the notice. Each Party may also terminate this Agreement upon written
    notice if the other Party becomes the subject of a petition in bankruptcy or any other proceeding relating to insolvency,
    receivership, liquidation or assignment for the benefit of creditors and such proceeding is not favorably resolved within
    sixty (60) days.
	 	 	 
	 	10.2.	Fulfillment of
    Obligations. The termination of this Agreement shall not otherwise release either Party from its obligation to pay any
    sum that may be then or thereafter owing to the other Party nor operate to discharge any liability that had been incurred
    by either Party prior to any such termination.

 

	11.	Confidential
    Information

 

	 	11.1.	Confidentiality.
    From time to time during the Term, either Party (as the “Disclosing Party”) may disclose or make available
    to the other Party (as the “Receiving Party”) information about its business affairs, goods and services
    (including any forecasts), confidential information and materials comprising or relating to Intellectual Property Rights,
    Trade Secrets, third-party confidential information and other sensitive or proprietary information. Such information, as well
    as the terms of this Agreement, whether orally or in written, electronic or other form or media, and whether or not marked,
    designated or otherwise identified as “confidential” constitutes “Confidential Information”
    hereunder. Confidential Information does not include information that at the time of disclosure: (a) is or becomes generally
    available to and known by the public other than as a result of, directly or indirectly, any breach of this Section by the
    Receiving Party or any of its representatives; (b) is or becomes available to the Receiving Party on a non-confidential basis
    from a third-party source, provided that such third party is not and was not prohibited from disclosing such Confidential
    Information; (c) was known by or in the possession of the Receiving Party or its representatives prior to being disclosed
    by or on behalf of the Disclosing Party; (d) was or is independently developed by the Receiving Party without reference to
    or use of, in whole or in part, any of the Disclosing Party’s Confidential Information; or (e) is required to be disclosed
    pursuant to applicable law; provided, that the Receiving Party (i) provide prompt written notice thereof to the Disclosing
    Party to enable the Disclosing Party to seek a protective order or otherwise prevent such disclosure and (ii) disclose only
    that portion of the Confidential Information required to comply with such requirement. The Receiving Party shall, for ten
    (10) years from disclosure of such Confidential Information: (a) protect and safeguard the confidentiality of the Disclosing
    Party’s Confidential Information with at least the same degree of care as the Receiving Party would protect its own
    Confidential Information, but in no event with less than a commercially reasonable degree of care; (b) not use the Disclosing
    Party’s Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights
    or perform its obligations under this Agreement; and (c) not disclose any such Confidential Information to any person, except
    to the Receiving Party’s representatives who need to know the Confidential Information to assist the Receiving Party,
    or act on its behalf, to exercise its rights or perform its obligations under this Agreement. The Receiving Party shall be
    responsible for any breach of this Section caused by any of its representatives. On the expiration or earlier termination
    of this Agreement or at any time during or after the Term, at the Disclosing Party’s written request, the Receiving
    Party and its representatives shall, promptly return all Confidential Information and copies thereof that it has received
    under this Agreement.

 

	12.	Insurance

 

	 	12.1.	Each
    Party shall maintain insurance, including product liability insurance and commercial general liability insurance, with respect
    to its activities under this Agreement in such amount as such Party customarily maintains with respect to similar activities,
    but not less than such amount as is reasonable and customary in the industry and in any case not less than the following:
    Commercial general liability insurance written on an occurrence basis with combined bodily injury, property damage and personal
    injury liability limits of not less than one million U.S. dollars ($1,000,000) per occurrence and two million U.S. dollars
    ($2,000,000) annual aggregate; and product and/or excess liability insurance with a limit of not less than five million U.S.
    dollars ($5,000,000) per occurrence and five million U.S. dollars ($5,000,000) annual aggregate. Each Party shall maintain
    such insurance for so long as it continues its activities under this Agreement, and thereafter for so long as such Party customarily
    maintains insurance for itself covering similar activities. Each Party shall name the other Party as an additional insured
    under its policy. Each Party shall provide written proof of the existence of such insurance to the other Party upon request.

 

    	 	10	 

     

    

 

	13.	General
    Provisions

 

	 	13.1.	Further
    Actions. Upon a Party’s reasonable request, the other Party shall, at its sole cost and expense, execute and deliver
    all such further documents and instruments, and take all such further acts necessary to give full effect to this Agreement.
	 	 	 
	 	13.2.	Relationship
    of the Parties. The relationship between Licensee and Pure is solely that of vendor and vendee and they are independent
    contracting parties. Nothing in this Agreement creates any agency, joint venture, partnership or other form of joint enterprise,
    employment or fiduciary relationship between the Parties. Except as otherwise expressly set forth in this Agreement, neither
    Party has any express or implied right or authority to assume or create any obligations on behalf of or in the name of the
    other Party or to bind the other Party to any contract, agreement or undertaking with any third party.
	 	 	 
	 	13.3.	Entire Agreement.
    This Agreement, including and together with any related exhibits, schedules and the applicable terms of any purchase orders,
    constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and therein,
    and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and
    oral, with respect to such subject matter.
	 	 	 
	 	13.4.	Survival.
    Subject to the limitations and other provisions of this Agreement: (a) the representations and warranties of the Parties contained
    herein will survive the expiration or earlier termination of this Agreement; and (b) Sections 3, 4.1, 7.4, 8.1, 9, 10.2, 11.1
    and 13 of this Agreement, as well as any other provision that, in order to give proper effect to its intent, should survive
    such expiration or termination, will survive the expiration or earlier termination of this Agreement.
	 	 	 
	 	13.5.	Notices.
    All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (each, a “Notice”)
    must be in writing and addressed to the other Party at its address set forth in the preamble to this Agreement (or to such
    other address that the receiving Party may designate from time to time in accordance with this Section). All Notices must
    be delivered by personal delivery, nationally recognized overnight courier or certified or registered mail (in each case,
    return receipt requested, postage prepaid). Except as otherwise provided in this Agreement, a Notice is effective only (a)
    on receipt by the receiving Party, and (b) if the Party giving the Notice has complied with the requirements of this Section.
	 	 	 
	 	13.6.	Interpretation.
    For purposes of this Agreement: (a) the words “include,” “includes” and “including” are
    deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; (c) the
    words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer
    to this Agreement as a whole; (d) words denoting the singular have a comparable meaning when used in the plural, and vice-versa;
    and (e) words denoting any gender include all genders. Unless the context otherwise requires, references in this Agreement:
    (x) to sections, exhibits, schedules, attachments, and appendices mean the sections of, and exhibits, schedules, attachments
    and appendices attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument
    or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof;
    and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any
    regulations promulgated thereunder. This Agreement was drafted with input from both Parties. The Parties drafted this Agreement
    without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument
    or causing any instrument to be drafted because such Party drafted an instrument or caused an instrument to be drafted. The
    exhibits, schedules, attachments, and appendices referred to herein are an integral part of this Agreement to the same extent
    as if they were set forth verbatim herein.
	 	 	 
	 	13.7.	Headings.
    The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.

 

    	 	11	 

     

    

 

	 	13.8.	Severability.
    If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
    or unenforceability does not affect any other term or provision of this Agreement or invalidate or render unenforceable such
    term or provision in any other jurisdiction. Upon a determination that any term or provision is invalid, illegal or unenforceable,
    the Parties shall negotiate in good faith to modify this Agreement to effect the original intent of the Parties as closely
    as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent
    possible.
	 	 	 
	 	13.9.	Amendment and
    Modification. No amendment to or rescission, termination or discharge of this Agreement is effective unless it is in writing,
    identified as an amendment to or rescission, termination or discharge of this Agreement and signed by an authorized representative
    of each Party.
	 	 	 
	 	13.10.	Waiver. No
    waiver under this Agreement is effective unless it is in writing, identified as a waiver to this Agreement and signed by an
    authorized representative of the Party waiving its right. Any waiver authorized on one occasion is effective only in that
    instance and only for the purpose stated, and does not operate as a waiver on any future occasion. None of the following constitutes
    a waiver or estoppel of any right, remedy, power, privilege or condition arising from this Agreement: (a) any failure or delay
    in exercising any right, remedy, power or privilege or in enforcing any condition under this Agreement; or (b) any act, omission
    or course of dealing between the Parties.
	 	 	 
	 	13.11.	Cumulative Remedies.
    All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either Party
    of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available
    at law, in equity, by statute, in any other agreement between the Parties or otherwise.
	 	 	 
	 	13.12.	Assignment.
    Licensee may not assign any of its rights or delegate any of its obligations under this Agreement without the prior written
    consent of Pure. Pure may assign any of its rights or delegate any of its obligations to any affiliate or to any person acquiring
    all or substantially all of Pure’s assets. Any purported assignment or delegation in violation of this Section is null
    and void. No assignment or delegation relieves the assigning or delegating Party of any of its obligations under this Agreement.
	 	 	 
	 	13.13.	Successors and
    Assigns. This Agreement is binding on and inures to the benefit of the Parties and their respective permitted successors
    and permitted assigns.
	 	 	 
	 	13.14.	Dispute Resolution.
    Each and all disputes and controversies arising out of and/or related to this Agreement and the transactions contemplated
    by this Agreement (whether in contract, tort, or otherwise) shall be determined exclusively by binding arbitration in accordance
    with the then-current commercial dispute procedures of the American Arbitration Association (AAA), and will be conducted in
    California only in the counties of San Diego or Los Angeles. This Dispute Resolution clause has been bargained for separately
    from the other terms of this Agreement and claims of invalidity, ineffectiveness, or unenforceability of the entire Agreement
    shall not affect the validity or enforceability of this Dispute Resolution paragraph. Any Party who files a litigation regarding
    any such dispute or who seeks to institute arbitration other than in San Diego or Los Angeles County hereby stipulates to
    the immediate dismissal of such litigation or non-San Diego / non-Los Angeles arbitration without prejudice upon ex parte
    application of the Party seeking arbitration. The arbitrator shall have the power under AAA provision R-36 (Interim Measures)
    and the AAA Optional rules for Emergency Measures of Protection to order “Interim Measures” (including injunctive
    relief), and the authority to order discovery, as the arbitrator considers necessary to a full and fair exploration of the
    issues in dispute consistent with the expedited nature of arbitration. The Parties expressly, and voluntarily waive any right
    to assertion of the principle(s) of “comity” or “inconvenient forum.” The Parties each expressly forever
    waive any right to trial by jury. The Parties agree to share pro rata and timely contribute any and all monies requested by
    AAA or the arbitrator or required under applicable AAA rules in connection with the binding procedure. Failure to timely pay
    a Party’s pro rata share of AAA and/or arbitrator costs and expenses shall constitute a material breach of this dispute
    resolution agreement; the non-paying Party shall be considered in default and will not thereafter be entitled to participate
    in the proceeding. The prevailing Party in any such dispute shall be entitled to attorneys’ fees and costs. The arbitration
    shall be “self-executing,” such that no order to compel by any court is necessary to enforce compliance with the
    terms of this paragraph against a Party who declines to voluntarily participate in the AAA procedure. Should one of the Parties
    fail to respond to a request to arbitrate or otherwise decline to participate in the procedure, the AAA administration shall
    appoint a neutral arbitrator who is empowered by this paragraph 13.14to entertain evidence from the participating Party and
    enter a binding award accordingly. Notwithstanding the permissive venue statutes enunciated in Cortez Byrd Chips, 529 U.S.
    193 (2000), the award of the arbitrator may be rendered as a judgment or, alternately, vacated (or otherwise challenged) only
    by a petition filed in either San Diego County Superior Court or Los Angeles County Superior Court or in the United States
    District Court sitting in San Diego or Los Angeles County. In the event a petition to confirm or vacate any arbitration award
    hereunder is brought by one of the Parties in a venue other than a San Diego County Superior Court or a Los Angeles County
    Superior Court or in the United States District Court sitting in San Diego or Los Angeles County, the Party filing such petition
    expressly stipulates to an ex parte order of such other court immediately dismissing said petition without prejudice, and
    for an order for actual attorney’s fees in favor of the non-filing Party.

 

    	 	12	 

     

    

 

	 	13.15.	Governing
    Law. This Agreement, including all exhibits, schedules, attachments and appendices attached hereto, and all matters arising
    out of or relating to this Agreement, are governed by, and construed in accordance with, the laws of the State of California,
    United States of America, without regard to the conflict of laws provisions thereof. The Parties agree that the United Nations
    Convention on Contracts for the International Sale of Goods does not apply to this Agreement.
	 	 	 
	 	13.16.	Counterparts.
    This Agreement may be executed by fax or in the original in multiple counterparts, any one of which will be deemed an original,
    but all of which shall constitute one and the same instrument.
	 	 	 
	 	13.17.	Force Majeure.
    Neither Party will be deemed in default of this Agreement to the extent that performance of its obligations, or attempts to
    cure any breach, are delayed or prevented by reason of circumstance beyond its reasonable control including the following
    each to be deemed a “Force Majeure”: fire, explosion, breakdown of plant, strike, lockout, labor dispute, casualty
    or accident, lack or failure of transportation facilities, inability to obtain shipping space, epidemic, earthquake, storm,
    flood, drought, government declarations of disaster, allocation of product or price increases by suppliers or other lack or
    shortage of sources of supply of labor, transportation, raw materials, power, fuel or supplies, war, revolution, civil commotion,
    terrorism acts of public enemies, blockade, or embargo, any law, order, proclamation, regulation, ordinance, demand, or requirement
    of any governmental authority, or any other causes whatsoever; whether similar or dissimilar to those above beyond the reasonable
    control of such party. If there is a Force Majeure, the time for performance or cure will be extended for a period equal to
    the duration of the Force Majeure. A Force Majeure shall not be applicable to any payment obligations of either Party.
	 	 	 
	 	13.18.	No Public Announcements.
    Unless expressly permitted under this Agreement, neither Party shall either: (a) make any statement (whether oral or in writing)
    in any press release, external advertising, marketing or promotion materials regarding the subject matter of this Agreement,
    Pure or its business unless: (i) it has received the express written consent of Pure, or (ii) it is required to do so by law
    or under the rules of any stock exchange to which it is subject; or (b) use any of Pure’s Trademarks without the prior
    written consent of Pure.

 

[Remainder
of page intentionally left blank.]

 

    	 	13	 

     

    

 

The
Parties hereto have executed this Agreement by persons duly authorized as of the Effective Date.

 

	 	PURE BIOSCIENCE, INC.
	 	 	 
	 	By:	/s/
    Tom Y. Lee
	 	Name: 	Tom Y. Lee
	 	Title: 	Chief Executive Officer and President

 

	 	PACKERS SANITATION SERVICES, INC.
	 	 	 
	 	By:	/s/
    Doug Sharp
	 	Name: 	Doug Sharp
	 	Title: 	President

 

    	 

     

    

 

Exhibit
A – Licensee Product Rights

 

AUTHORIZED
TRADEMARK(s): Pure approves the use of PURE’s “SDC” and “PURE HARD SURFACE” trademarks for
Licensee’s commercialization of the Product(s).

 

PRODUCT(s):

 

PURE®
HARD SURFACE - (EPA #72977-5-73912) hard surface disinfectant / food contact surface sanitizer;

PURE®
MultiPurpose & Floor Cleaner Concentrate; and

PURE®
MultiPurpose Hi-Foam Cleaner Concentrate.

 

TERRITORY:

 

The
United States of America and only within the Field of Use and within the Distribution Channel(s) described below.

 

FIELD
OF USE:

 

	●	[ * ]

 

NON-EXCLUSIVE
DISTRIBUTION CHANNEL(s):

 

	o	[ * ]

 

The
Licensee shall have the following Exclusive Distribution Channel(s) as its exclusive territory, whereby Pure agrees during the
Term of this Agreement to not directly sell or distribute Product(s) to customers within the Exclusive Distribution Channel(s).
This Exclusive Distribution Channel(s) shall remain exclusive for so long as Licensee meets its Minimum Purchase Volume obligations
as stated in Exhibit B. Any loss of exclusivity by Licensee shall not prohibit Licensee from continuing to sell and distribute
Product(s) within the Exclusive Distribution Channel(s).

 

EXCLUSIVE
DISTRIBUTION CHANNEL(s):

 

	o	[ * ]

 

    	 

     

    

 

EXHIBIT
B

 

pricing
& minimum purchase volumes

 

PRODUCT(S)
PRICING IN U.S. DOLLARS

 

	Item
    #	Item
    Description	*Price
    Each	Pallet
    Quantity
	93355	55
    Gallon Drum Pure Hard Surface	$[
    * ]	[
    * ]
	 	 	$	 

 

*Product
pricing does not include the following fees:

 

	 	a)	freight, processing fees,
    order fulfillment fees, postage and transportation charges including handling and insurance; and
	 	b)	sales (such as VAT or its equivalent) and excise
    taxes, other consumption taxes and customs duties to the extent added to the sales price and set forth separately as such
    in the total amount invoiced.

 

Product
packaging notes:

 

	 	a)	Product
    to be packaged in pallet quantities only; and
	 	b)	All containers,
    closures & cartons to be per PURE’s standard packaging specifications.

 

SUB-LICENSEE
PRICING

 

[
* ]

 

MANUFACTURER
SUGGESTED RETAIL PRICE (MSRP)

 

[
* ]

 

MINIMUM
PURCHASE VOLUME

 

Licensee
will fulfil the below stated Minimum Purchase Volume to maintain its exclusivity in the Exclusive Distribution Channel(s) as set
forth in the attached Exhibit A. Licensee will fulfill this Minimum Purchase Volume by issuing individual purchase orders in accordance
with the terms set forth in this Agreement and under the schedule set forth below.

 

Minimum
Purchase Volume Schedule:

 

	Item
    #	Item
    Description	Yearly
    Minimum Units
	93355	55
    Gallon Drum Pure Hard Surface	[
    * ]
	 	 	 

 

    	 

     

    

 

Exhibit
C

 

PACKAGING
SPECIFICATIONS

Licensee
is hereby approved as a Packager and agrees to strictly follow the following Packaging Specifications:

 

A
Licensee specifically approved as a Packager must faithfully and strictly comply all with all the following regulatory requirements
and conditions:

 

Materials

[
* ]

 

Batch
Records

[
* ]

 

Equipment

[
* ]

 

Testing

 

[
* ]

 

Auditing

 

[
* ]

 

Environmental
Factors

 

[
* ]

 

Considerations
To Bottle Product

 

[
* ]

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