Document:

Supply and Manufacturing Agreement

 EXHIBIT 10.34 
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 
 SUPPLY AND MANUFACTURING AGREEMENT 
 THIS SUPPLY AND MANUFACTURING AGREEMENT
(THE “SUPPLY AGREEMENT”) is made effective as of the 1st day of March, 2008 (the “Effective Date”) by and between Cerus Corporation (“Cerus”), a
Delaware corporation, having its principal place of business at 2411 Stanwell Drive, Concord, CA 94520, and Porex Corporation (“Porex”), a Delaware corporation, having its principal place of business at 500 Bohannon Road, Fairburn,
GA 30213. (Cerus and Porex are each individually referred to in this Supply Agreement as a “Party” and, collectively, as the “Parties”). 
 WITNESSETH 
 WHEREAS, the Parties desire to set forth the terms
under which Cerus may purchase from Porex [ * ] porous plastic [ * ] wafers designed for the pathogen inactivation system for platelets (the “Platelet Wafers”) and [ * ] porous plastic [ * ] disks
designed for the pathogen inactivation system for plasma (the “Plasma Disks”) (collectively, the “Components”) made to Cerus specifications as further detailed in Exhibit A and Exhibit B
attached hereto, respectively (the “Specifications”); 
 WHEREAS, the Platelet Wafers and
Plasma Disks will be used in the manufacture of disposable products forming part of the INTERCEPT Blood System for platelets and the INTERCEPT Blood System for plasma, respectively, for sale by Cerus and its affiliates, and disposable products
forming part of similar systems for sale by a third party (collectively, the “Products”); 
 WHEREAS,
in connection with this Supply Agreement, Cerus has made a payment to Porex of [ * ] dollars ($[ * ]) in respect of Porex’s fixed costs for calendar year 2007 relating to manufacture of Components; 
  

 Page 1 of 15 
 CERUS –POREX AGREEMENT 

 NOW THEREFORE, in consideration of the foregoing
premises and the mutual covenants set forth herein, Cerus and Porex agree as follows: 
  

	1.	PURCHASES 

  

	 	1.1	Purchase and Sale 

 1.1.1 During the term of
this Supply Agreement, Porex shall sell to Cerus Components ordered pursuant to Section 1.3 of this Supply Agreement. During the term of this Supply Agreement, and provided that Porex is not in material breach of its obligations under this
Agreement, Cerus agrees to purchase from Porex [ * ] of Cerus’ requirements for (a) the Components or (b) [ * ] porous plastic [ * ] that serve the same or substantially similar purpose as the Components in the
Products; except to the extent [ * ] of Porex afforded [ * ] being undertaken [ * ] of this Agreement. At such time as Cerus determines [ * ], Cerus will notify Porex in writing [ * ] so that Porex may [ * ]
for the terms to establish [ * ] and supply Components to Cerus [ * ]. If the [ * ] to Cerus, Cerus will purchase [ * ] from Porex in accordance with [ * ] or as the Parties may otherwise agree. If the [ * ]
to Cerus, Cerus will provide to Porex in writing (such document being referred to herein as [ * ] a description in reasonable detail of those modifications to the [ * ] required by Cerus in order to make the [ * ]. Upon receipt
of the [ * ] Porex shall have fifteen (15) business days to notify Cerus whether Porex shall [ * ] to comply with the terms of the [ * ]. If Porex agrees to so [ * ], then Cerus shall be deemed to have accepted [
* ]. If Porex does not make a [ * ] within thirty (30) days of Cerus’ original notice, or if Porex does not amend a [ * ] to comply with the terms of [ * ], Cerus may accept proposals from third parties to
establish the additional capacity and supply components to Cerus in the increased volume indicated, as it determines to be appropriate, so long as any [ * ] that is accepted by Cerus is on terms no more favorable to [ * ] than the [
* ], as [ * ] would have been modified by the [ * ], rejected by Cerus. Cerus further agrees that, should it elect in the future to transfer or license (whether to an affiliate or an unaffiliated third party) the rights to
manufacture and sell the Products, Cerus will require in such transaction that the transferee or licensee agree to comply with the terms of this Section 1.1.1, as such terms were applicable to Cerus prior to such transaction. 
 1.1.2 By written notice to Porex, Cerus may designate, from time to time, one or more third parties (hereinafter referred to as
“Designee”) provided such Designee is not a Porex competitor as defined in Section 13.3 below, that is authorized to: 
 (a) issue purchase orders for Components pursuant to Section 1.3; 
 (b) receive, inspect and test shipments
from Porex for such ordered Components pursuant to Section 1.4. 
 Designees are not authorized to act for Cerus in any other capacity or to bind Cerus
in any other respect whatsoever. Notwithstanding anything contained herein to the contrary, Cerus shall be legally responsible for any act, omission or obligation of Designee pertaining to this Agreement. Porex acknowledges that Fenwal Inc. is not
as of the Effective Date a Porex Competitor. 
  

	 	1.2	Raw Materials 

 1.2.1 Cerus shall arrange,
at its own expense, for the supply and delivery to Porex of [ * ] (in conformance with the specifications set forth on Exhibits A-1 and B-1), [ * ] for production of Plasma Disks, (collectively, the “Raw Materials”),
and in sufficient quantity as may be necessary for Porex to meet Cerus’ requirements, in particular: 
  

 Page 2 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 (a) [ * ] (in conformance with the specifications set forth on Exhibits A-1 and B-1) to produce
[ * ] of the quantity of Components ordered based on typical mean part weight of Components supplied, as per the Specifications, and 
 (b) [ * ] (in conformance with the specifications set forth on Exhibit A-1) for Platelet Wafers to produce [ * ] of the ordered quantity of Components based on typical mean part weight of Components supplied, as per the
Specifications. 
 1.2.2 Porex shall be solely responsible for obtaining the [ * ] (in conformance with the specifications set
forth on B-2) used for production of the Plasma Disks. Porex shall also be responsible for ordering and purchasing packaging material within the Specifications. 
 1.2.3 In the event Raw Materials are supplied to Porex in excess of the specified allowances, Porex shall notify Cerus and use such Raw Materials in fulfillment of the subsequent order. In the event Porex
requires Raw Materials in excess of such specified allowances as a result of its failure to comply with the procedures applicable to the production of Components as set forth on Exhibit C, Porex shall bear all additional costs for obtaining such
additional materials from Cerus or its designated supplier at a price equal to Cerus’ cost. 
 1.2.4 Cerus and Porex will work
together to achieve a [ * ] with respect to Components ordered. Cerus and Porex will reevaluate and agree on [ * ] following completion of the [ * ] 
 1.2.5 The process flow charts from receipt of the Raw Materials to shipment of the Components are attached hereto as Exhibit C, subject to change by mutual written agreement of the Parties. 

 

	 	1.3	Short-Term Forecasts/Purchase Orders 

 At least
[ * ] before the beginning of each calendar quarter, Cerus (directly or through its Designee) will provide [ * ], with monthly delivery dates (“Purchase Order(s)”) and [ * ], with monthly delivery dates
(“Short Term Forecast(s)”). Within ten (10) business days after receipt of the Short Term Forecast, Porex shall provide confirmation of its ability to meet the monthly requirements in the Short Term Forecast, subject to
availability of Raw Materials from Cerus or its suppliers in order to meet such requirements. [ * ] Porex shall not be liable for any delay in production of Components resulting from a failure of Cerus to provide sufficient Raw Materials.

  

	 	1.4	Delivery 

 1.4.1 Porex shall ship the
Components to destinations specified by Cerus (directly or through its Designee) in the Purchase Order, by mutually agreed upon carriers, [ * ]. Cerus shall pay all shipping and applicable insurance charges. Porex shall provide to Cerus or
Designee (as the case may be) all documentation as described in the Specifications. 
  

 Page 3 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 1.4.2 All Components shipped hereunder shall be received subject to inspection and testing by
Cerus (directly or through its Designee) for compliance with the Specifications, to be completed within sixty (60) days from the receipt of said shipment. Cerus (directly or through its Designee) shall also, within that same period, notify
Porex in writing of the acceptance or rejection of a shipment for failure to meet Specifications and if rejected, specifying in detail the reasons for rejection. If the shipment is rejected, Cerus (directly or through its Designee) shall promptly
make such Components available to Porex for examination and testing and Porex shall either (i) credit Cerus for the amount of such non-conforming Components for which Cerus has previously paid Porex, or (ii) provide replacement for
Components that fail to meet the Specifications as soon as such replacement can be completed within Porex’s normal schedules and operating capacity without adversely affecting Porex’ current production. If Cerus or its Designee does not
deliver such written notice to Porex within the sixty (60) day period from the receipt of shipment, Cerus shall be deemed to have accepted the shipment. Prior to inspection and testing by Cerus (directly or through its Designee) of Components
for compliance with the Specifications, Cerus or its Designee will work with Porex to correlate the testing and inspection methods and procedures to be used by Cerus or its Designee. Cerus will bear the costs of correlating the testing and
inspection methods and procedures. Porex testing and inspections procedures and methods will control until such testing and inspection methods and procedures to be used by Cerus or its Designee are correlated. Any failures of results obtained by
Cerus’ or Designee’s testing and inspection methods to correspond to results obtained by Porex’s testing and inspection methods, until the testing and inspection methods and procedures used by Cerus or its Designee are correlated,
will be the responsibility of Cerus. For the avoidance of doubt, the references to the Cerus or Fenwal testing methods, procedures or other obligations (collectively “Cerus Methods”) in the Specifications are included solely for
Cerus’ internal use and shall not be binding upon Porex and shall have no effect whatsoever for purposes of determining any party’s rights or obligations under this Agreement, except for the purpose of confirming conformance to the
Specifications, after correlation of Porex’s and Cerus’ and its Designee’s testing and inspection methods. 
  

	 	1.5	Price; Payment Terms 

 1.5.1 Prices to be
paid by Cerus (the “Prices”) are set forth on Exhibit D. 
 1.5.2 Porex will invoice Cerus monthly for Components
shipped pursuant to Purchase Orders placed for that month. Cerus will pay the amount of the invoice within [ * ] following (i) receipt of the invoice by Cerus, or (ii) delivery of such Components covered by such invoice, whichever
later occurs. Past due payments will bear interest at [ * ] per month from the due date. 
  

 Page 4 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	 	1.6	Minimum Purchase Orders 

 Cerus (directly or through its Designee)
shall provide Purchase Orders to Porex for quantities of Components not less than those set forth on Exhibit E to this Supply Agreement. In the event Cerus fails to make purchases of said minimum amounts for any given calendar year, Cerus shall [
* ] not purchased [ * ]. In the event Porex enters into an agreement with a third party for the sale of Components to such third party, with Cerus’ prior written consent, volumes of Components purchased by Cerus and such third party
purchaser will be aggregated for the purpose of determining if the minimum purchase requirements for any calendar year have been met; provided that Cerus will remain obligated [ * ] as provided under this Section if the aggregate volume of
purchases for Components does not meet the minimum purchase requirements for any calendar year. As of the Effective Date, Porex acknowledges that orders have been placed with Porex for [ * ] 
  

	2.	MANUFACTURING CAPACITY 

  

	 	2.1	Initial Capacity 

 Porex represents that, as of the
date of this Supply Agreement, its capacity for production of Components is [ * ] (the “Initial Capacity”), with a [ * ] of one Component to the other, based on [ * ] and adequate supply of raw materials. Porex agrees
not to reduce such capacity during the term of the Supply Agreement. 
  

	 	2.2	Additional Capacity 

 2.2.1 Attached hereto
as Exhibit F is a list of the equipment and facility improvements, including associated control systems upgrades, associated qualifications, timeline and floor plan required to implement an increase of production capacity to [ * ]
(“the Capacity Expansion Plan”) and such capacity is subject to completion and implementation of the Capacity Expansion Plan. Porex will use commercially reasonable efforts to [ * ]. 
 2.2.2 Cerus shall be responsible for capital expenditures and related costs associated with the Capacity Expansion Plan which shall, in no event,
exceed an amount of [ * ] To that effect, Cerus has, as of the Effective Date, [ * ] The portion of the Capacity Expansion Plan costs, representing the purchase price of a [ * ] shall be paid by Cerus in advance as agreed to by
the Parties, provided: (a) Porex has provided Cerus with a written quote [ * ] with a related implementation plan that includes quality assessment and timeline for completion; and (b) Cerus has reviewed and approved such plan and
related costs. In addition to such payment(s) [ * ], Cerus will make a final payment of [ * ] upon completion of the Capacity Expansion Plan. Capital expenditures for additional equipment and improvements requested by Cerus that fall
outside the scope of the Capacity Expansion Plan shall be borne exclusively by Cerus. 
  

 Page 5 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	 	2.3	Ownership of Equipment 

 [ * ] ownership of all
Stations, Tooling and Additional Equipment set forth on Exhibit F (the “Equipment”) and the Equipment will be considered [ * ]. [ * ] shall be responsible for maintaining, servicing and insuring the Equipment, and
keeping appropriate records regarding such use, maintenance and service during the term of this Supply Agreement. The Equipment shall be used by Porex during the term of this Supply Agreement solely for production of Components for Cerus under this
Supply Agreement. Upon termination or expiration of this Supply Agreement, Porex will remove and destroy any Tooling set forth on Exhibit F embodying Cerus’ proprietary specifications or design). In the event of termination of this Supply
Agreement by Cerus pursuant to Section 12.3 as a result of a breach by Porex, Porex shall repay to Cerus [ * ] in an amount equal to [ * ]. Any such amount payable by Porex will be paid in full to Cerus within thirty
(30) days after any such termination by Cerus under Section 12.3 for a breach by Porex. 
  

	 	2.4	Ownership of Facility Improvements 

 [ * ]
shall own all Facility Improvements set forth on Exhibit F. In the event of the termination of this Supply Agreement by Cerus pursuant to Section 12.3 as a result of a breach by Porex, Porex shall repay to Cerus [ * ], in an amount equal
[ * ]. Any such amount payable by Porex will be paid in full to Cerus within thirty (30) days after any such termination under Section 12.3 for a breach by Porex. 
  

	3.	COMPONENT CHANGES 

 During the term of the Supply Agreement, Cerus may propose modifications to the Components, provided however that any proposed modifications and any work related thereto shall be subject to mutual agreement by the Parties, which agreement
by Porex shall not be unreasonably withheld or delayed. Cerus shall bear the costs of mutually agreed modifications to the Components, including, but not limited to, any agreed upon capital costs necessary for the modifications and any increased
cost of the Components and associated margins arising from the modifications. Notwithstanding the foregoing, Components changes shall not modify or release Cerus from its minimum purchase orders commitments as set forth in Section 1.6, unless
otherwise mutually agreed to by the Parties. 
  

	4.	QUALITY OBLIGATIONS 

 Quality obligations of each Party are stated in Exhibit G attached hereto (the “Quality Obligations”). 
  

	5.	REGULATORY RESPONSIBILITY 

 Cerus is solely responsible for all regulatory compliance and requirements relating to the Products and use of Components in the Products. 
  

 Page 6 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	 	6.	FORCE MAJEURE 

 Porex
shall not be liable for delays in performance or for non-performance of its obligations hereunder if prevented by causes outside of its reasonable control. Without limiting the foregoing, such causes shall include but not be limited to, acts of God
or the public enemy, fires, floods, earthquake, riots, boycotts, strikes, lock-outs, and delays in transportation or shortage of supplies necessary for production, in each case where delays could not reasonably have been prevented. Upon discovering
that timely performance will be delayed, Porex will promptly notify Cerus of the nature of the delay and Porex’s disaster recovery plan along with timing expectations. 
  

	7.	INDEMNIFICATIONS 

  

	 	7.1	Porex Warranties 

 7.1.1 The warranties set
forth herein are made solely for the benefit of Cerus and its affiliates. All claims hereunder shall be made by Cerus and may not be made by Cerus customers or any third parties. The term “affiliate”, as used in this Supply Agreement,
means with respect to a Party any entity that, directly or indirectly, controls, or is controlled by, or is under common control with, such Party. The term “controls”, “controlled by”, or “under common control with”,
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether by contract or through the ownership of voting securities, including the ownership of more than fifty
percent (50%) of the equity, partnership, membership or similar interest in such entity. 
 7.1.2 Porex shall not be responsible
for any Components that do not meet the Specifications if such failure is caused by the Raw Materials supplied under this Supply Agreement, subject to Porex’s inspection obligations as provided under Exhibit G attached hereto, and the Porex
warranties in Section 7.1 do not extend to such failure to meet the Specifications if caused by the Raw Materials or any specifications or processes provided by Cerus for the Raw Materials. 
 7.1.3 In no event shall Porex be responsible for any damage, change or effect to the Components or Products resulting from or related to any acts
or omissions of Cerus or its Designees or their respective affiliates, agents, distributors, vendors or customers or any intermediary or end user of any product manufactured, distributed or sold by Cerus or its Designee, including, but not limited
to, improper storage, handling, installation, modifications, abuse or misuse. 
 7.1.4 Porex warrants and represents that: 

 

	 	(a)	it will comply with all laws, decrees, rules, regulations, codes, orders, ordinances, actions and requests of all federal, state and local governmental bodies and courts applicable
to Porex’s obligations under this Agreement; 

  

 Page 7 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	 	(b)	Porex’s technology, processes, know-how, trade secrets and other intellectual property used by Porex to manufacture the Components will not infringe upon the intellectual
property rights of any third party, and Porex has the right to use such technology, processes, know-how and other intellectual property; and, 

  

	 	(c)	Porex’s performance of its obligations under this Agreement will not result in the breach of any covenant, undertaking or obligation of Porex to any third party.

 7.1.5 EXCEPT AS PROVIDED IN THE PRECEDING SECTION 7.1.3, POREX WARRANTS THAT THE COMPONENTS SHALL CONFORM TO THE
SPECIFICATIONS, AND POREX WARRANTS THAT POREX TRANSFERS GOOD AND MARKETABLE TITLE TO THE COMPONENTS SOLD TO CERUS UNDER THIS SUPPLY AGREEMENT AS OF THE TIME THAT POREX SHIPS SUCH COMPONENTS AND RECEIVES PAYMENT. THE WARRANTIES IN SECTION 7.1.4 AND
THIS SECTION 7.1.5 ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WHICH ARE HEREBY DISCLAIMED AND EXCLUDED BY POREX, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, ANY OTHER
WARRANTY OF TITLE, REGULATORY COMPLIANCE, OR ANY WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE. THE SOLE AND EXCLUSIVE REMEDY FOR BREACH OF ANY AND ALL WARRANTIES SHALL BE LIMITED TO THE REPLACEMENT OR EXCHANGE OF
THE DEFECTIVE COMPONENTS. 
  

	 	7.2	Indemnification 

 7.2.1 Cerus, will
indemnify, defend and hold harmless Porex, its affiliates, and their respective officers, directors, agents, and employees (each a “Porex Indemnified Party”) from and against any and all third party claims, actions, causes of
action, liabilities, losses, costs, damages or expenses (including reasonable attorney’s fees) to the extent arising out of or in consequence of (i) the possession or use of any Products including, but not limited to, those containing the
Components; (ii) the death of or bodily injury to any person on account of the use of any Cerus Product containing the Components or use of any Components; (iii) any claim that the Products or Components violate a patent or trademark or
the intellectual property rights of any third party; or, (iv) Cerus’ failure to obtain any clearance, approval or license for the Products or the Components that is actually required by applicable law (collectively,
“Claims”), except to the extent arising under Porex’s indemnity obligation in Section 7.2.2. However, subject to the combined aggregate limitation set forth in Section 7.2.3 hereof, Cerus shall not be obligated to
indemnify a Porex Indemnified Party from any liability to the extent caused by a Porex Indemnified Party’s negligence or misconduct, as finally determined by a court of competent jurisdiction. 
  

 Page 8 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 7.2.2 Porex will indemnify, defend and hold harmless Cerus and its respective officers, directors,
agents, employees and affiliates (each a “Cerus Indemnified Party”) from and against any and all third party claims, actions, causes of action, liabilities, losses, costs, damages or expenses (including reasonable attorney’s
fees) to the extent arising out of or in consequence of any claim of patent, trademark or trade secrets infringement which relates to Porex’s proprietary manufacturing process(es) for [ * ] porous plastic [ * ]. 
 7.2.3 Notwithstanding anything contained herein to the contrary, the combined aggregate amount by which (x) Cerus’s indemnification
obligations pursuant to Section 7.2.1 may be reduced pursuant to the last sentence of Section 7.2.1 and (y) Porex may be liable for recalls under Section 9 of this Agreement, shall not exceed a combined aggregate limit of [ *
] during the term of this Agreement. 
 7.2.4 Each indemnified party agrees to give the indemnifying party prompt written notice
of any claims, including any claims asserted or made by any governmental authority, for which the other might be liable under the foregoing indemnification, together with the opportunity to defend, negotiate and settle such claims. Such notice shall
be given to the indemnifying party promptly after receipt of such claim. Failure to provide or promptly provide such notice shall not release the indemnifying party from any of its obligations hereunder except to the extent that the indemnifying
party is materially prejudiced by such failure. Each indemnified party will cooperate fully with the indemnifying party in defending or otherwise resolving any such action, and each indemnified party in any such action may at its option and expense
be represented in such action. No party shall be responsible or bound by any compromise made by any other party without its prior written consent, provided that such any such party requested to give consent shall not unreasonably withhold its
consent to any such settlement. 
  

	 	7.3	LIMITATION ON LIABILITY 

 IN NO EVENT, OTHER THAN
FOR PAYMENT OF DEFENSE AND INDEMNITY UNDER SECTION 7.2, SHALL CERUS BE LIABLE TO POREX, FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOST USE, OR THE LIKE) ARISING
OUT OF OR IN CONNECTION WITH THIS SUPPLY AGREEMENT OR THE MANUFACTURE, USE OR PERFORMANCE OF THE COMPONENTS OR PRODUCTS, EVEN IF SUCH PARTY IS ADVISED OF THE POSSIBLITY OF SUCH DAMAGES. IN NO EVENT SHALL POREX BE LIABLE TO CERUS UNDER ANY THEORY OF
LAW OR EQUITY, WHETHER IN CONTRACT, TORT OR OTHERWISE, FOR ANY DAMAGES INCLUDING, BUT NOT LIMITED TO, ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY OR COSEQUENTIAL DAMAGES (INCLUDING, BUT NOT 

  

 Page 9 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 
LIMITED TO, LOST PROFITS, LOST USE, OR THE LIKE), ARISING OUT OF THIS SUPPLY AGREEMENT OR THE MANUFACTURE, USE, OR PERFORMANCE OF THE COMPONENTS OR PRODUCTS,
IN AN AGGREGATE AMOUNT IN EXCESS OF [ * ] DURING THE TERM OF THIS AGREEMENT, EXCEPT AS PROVIDED IN SECTIONS 1.2.3, 2.3, 2.4, 7.2, 8.2, 9, 10, 11 AND 13.3 OF THIS SUPPLY AGREEMENT. THE PARTIES AGREE THAT THE FOREGOING LIMITATIONS OF LIABILITY
ARE A REASONABLE AND NEGOTIATED ALLOCATION OF RISK BETWEEN THE PARTIES AND THAT THEY WOULD NOT ENTER INTO THIS SUPPLY AGREEMENT ABSENT SUCH TERMS. EACH PARTY AGREES THAT IT SHALL NOT CLAIM THAT THESE LIMITATIONS ARE UNREASONABLE, AGAINST PUBLIC
POLICY, OR CAUSE ANY REMEDY TO FAIL OF ITS ESSENTIAL PURPOSE; THESE LIMITATIONS SHALL BE ENFORCED DESPITE ANY SUCH CLAIM. 
  

	 	7.4	Insurance 

 During the term of this Supply Agreement
and for five (5) years thereafter, Cerus shall at all times keep and maintain the following insurance coverage and limits of liability: 
  

	 	(a)	General Commercial Liability for death or personal injury and damage to property (including, but not limited to, coverage for products liability and completed operations,
advertising injury and independent contractors coverage) with limits of not less than $[ * ] per occurrence and $[ * ] in the aggregate. Such insurance to provide for broad form contractual liability coverage, including coverage for
the liabilities assumed in this Supply Agreement. 

  

	 	(b)	Umbrella/Excess Insurance follow form over (a) above with a limit of $[ * ]. 

  

	 	(c)	Statutory Workers’ Compensation in accordance with the laws of California and Employers Liability Insurance with a limit of not less than $[ * ].

 Policies of insurance set forth in Section 7.4(a) and 7.4(b) above shall provide for the following: 
  

	 	i.)	Name Porex and its officers, directors, employees, subsidiaries, parent company, if any, and agents as additional insureds. 

  

	 	ii.)	Be primary and non-contributory with respect to all obligations of Cerus under this Supply Agreement. Any insurance carried by Porex shall not contribute to, or be excess of
insurance maintained by Cerus, nor in any way provide benefit to Cerus, its affiliates, officers, directors, employees, subsidiaries, parent company, if any, or agents. 

  

 Page 10 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	 	iii.)	Have reasonable and customary deductible amounts, provided that in no event shall such deductible amounts exceed $[ * ] per occurrence. Any deductibles that exceed $[ *
] must be pre-approved in writing by Porex. 

  

	 	iv.)	Be issued by insurance carriers licensed to do business under the laws of the country, state, commonwealth, province or territory in which Cerus’ obligations are provided, and
with a rating of not less than A VII, as rated in the most currently available “Best’s Insurance Guide.” 

  

	 	v.)	Provide a waiver of subrogation in favor of Porex and its officers, directors, employees, subsidiaries, parent company, if any, and agents. 

  

	 	vi.)	Include a separation of insurance clause and cross-liability coverage where Porex is an additional insured. 

 Upon execution of this Supply Agreement, Cerus shall cause certificates to be issued evidencing that the coverages and policy endorsements required under this Supply
Agreement are maintained in force and effect and providing for not less than 30 days, 10 days in the case of nonpayment, written notice to Porex prior to any material modification, cancellation or non-renewal of the policies. Certificates shall
expressly confirm the above limits and obligations. The certificate of insurance shall be delivered to Porex’s address as set forth in the Notices provision of this Supply Agreement. The receipt of any certificate does not constitute acceptance
by Porex that the insurance requirements have been met. 
 If Cerus fails to procure and maintain the insurance coverage types or limits, or any portion
thereof, as specified herein, Porex, in its sole discretion, may procure and maintain the required insurance for and in the name of Cerus and Cerus shall pay the cost thereof or such cost shall be deducted from monies due to Cerus by Porex. Cerus
shall furnish to Porex all information necessary to acquire and maintain such insurance. Cerus shall not violate or knowingly permit any violation of any conditions or terms of the policies of insurance described herein. 
  

	8.	INTELLECTUAL PROPERTY 

 8.1 Cerus understands and agrees that nothing in this Supply Agreement is intended to grant Cerus any right, title, interest, or license to use or disclose Porex’s Confidential Information, intellectual property (both as further
defined in the Confidentiality Agreement referenced in Section 10 below), or manufacturing processes, including, but not limited to, Porex products, designs and specifications. 
 8.2 Porex understands and agrees that this Supply Agreement is not intended to grant Porex any right, title, interest or license to use or
disclose Cerus’ Confidential Information, intellectual property (both as further defined in the Confidentiality Agreement referenced in Section 10 below), including, but not limited to Products designs and Specifications. 
  

 Page 11 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 8.3 Neither this Supply Agreement nor one Party’s disclosure of Confidential Information or
intellectual property shall be deemed, by implication or otherwise to vest in any other Party any rights in any patents, trade secrets, trademarks, trade names, designs, copyrights, or other property of the disclosing Party; provided, however, that
Porex is granted a limited license to use the intellectual property of Cerus to the extent required for Porex to perform its obligations under this Supply Agreement. 
  

	9.	FIELD ACTION 

 Any
removal, correction, or other similar action involving Products shall be made solely by Cerus at Cerus’ sole discretion and expense. However, if in the event of a recall due solely to a failure of the Components to meet the Specifications
(other than as a result of the Raw Materials), Porex shall, subject to [ * ] set forth in Section 7.2.3 of this Agreement, reimburse Cerus for actual, reasonable direct costs and expenses actually incurred by Cerus in connection with all
such recalls including, but not limited to, direct costs of (i) administration of the recalls, (ii) retrieving Products already delivered to customers, and (iii) notification, shipping and handling charges. The Parties will cooperate
fully with each other in effecting any actions under this Section. Cerus will be responsible for communications to its customers and users of the Products. 
  

	10.	DISCLOSURE AND USE OF INFORMATION 

 The Agreement Regarding the Exchange of Confidential Information between Porex and Cerus, effective February 22, 2007, (the
“Confidentiality Agreement”) is attached hereto as Exhibit H and hereby incorporated by reference in their entirety herein and any exchange of information between Porex and Cerus pursuant hereto and this Supply Agreement
shall be subject to the terms of such Confidentiality Agreement. Section 13 of the Confidentiality Agreement is hereby amended to provide that the end date of the period which covers the provision of Confidential Information by the parties has
been extended to five (5) years following the termination of this Agreement. Cerus will insure that any and all Designees agree in writing to be bound by the Confidentiality Agreement and Cerus will be responsible for any and all breaches of
the Confidentiality Agreement by Designees.  
  

	11.	DEVELOPMENT ACTIVITIES 

 During the term of this Supply Agreement, and provided that Cerus is not in material breach of its obligations under this Agreement, Porex agrees that it will not knowingly develop or sell products utilizing Porex’s [ * ] porous
plastic [ * ] for or to any company (other than Cerus, including its Designees or any other entity approved in writing by Cerus or their respective affiliates) for use in [ * ]. The parties acknowledge and agree that the preceding
sentence does not apply to any products that Porex is currently manufacturing for parties other than Cerus, including, but not limited to, products used for [ * ]. If Cerus discovers Porex has engaged in such activities, Porex will have [
* ] from notice from Cerus to discontinue supplying Components and/or immediately cease doing development work with the other entity. As of the Effective Date, 

  

 Page 12 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 
Fenwal, Inc. is an entity approved in writing by Cerus for Porex to sell Components to. Notwithstanding anything to the contrary herein, including, without
limitation, Section 13.3, if the business of Porex is acquired by another person, either through an acquisition of the stock or assets of Porex, the restrictions set forth in this Section 11 shall only be binding on the acquiring person
with respect to the Porex business and the trade secrets and intellectual property acquired through the acquisition of Porex and shall not impose any restriction on such person or such person’s affiliates with respect to any other aspect of
such person’s business. 
  

	12.	TERM; TERMINATION 

 12.1 This Supply Agreement will have a term (the “Initial Term”) which will run from the Effective Date through December 31, 2012, subject to extension as provided in Section 12.2. 
 12.2 Either Cerus or Porex may renew this Agreement for three years at the end of the Initial Term by giving the other party, Porex or Cerus as
applicable, at least 24 months’ and not more than 30 months’ prior notice of its desire to renew this Agreement. Within 60 days of such notice by Cerus or Porex, Cerus and Porex will discuss the pricing terms for such renewal. If Cerus and
Porex agree on new pricing and other terms within such period, this Agreement will renew for a period of three years upon such agreed to pricing and other terms. If Cerus and Porex are unable to agree within such 60 days, then this Agreement will
terminate at the expiration of the Initial Term as set forth above. 
 12.3 If a Party materially breaches this Supply Agreement and
such breach remains uncured for a period of ninety (90) days after written notice containing details of the breach is delivered to the breaching Party, then the non-breaching Party may terminate this Supply Agreement as to the breaching Party
by further notice delivered no later than thirty (30) days after the expiration of the initial ninety (90) day cure period. 
 12.4 Each Party may terminate this Supply Agreement effective immediately with written notice in the event the other Party (“Insolvent Party”) files for bankruptcy, is adjudicated bankrupt, takes advantage of applicable
insolvency laws, makes an assignment for the benefit of creditors, is dissolved or has a receiver appointed for its property (which in the case of a receiver is not removed within thirty (30) days after notice to the Insolvent Party). Such
termination is only effective as to the Insolvent Party. 
 12.5 The provisions of Sections 2.3, 2.4, 4, 5 and 7 through 11 of this
Supply Agreement shall survive termination of the Supply Agreement and remain in effect in accordance with their terms. 
  

 Page 13 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	13.	MISCELLANEOUS 

  

	 	13.1	Entire Agreement 

 This Supply Agreement and the
Confidentiality Agreement contain the entire agreement between the Parties relating to the Components and supersede all prior agreements and negotiations between Cerus and Porex including, but not limited to, those regarding the Components and
specifically, without limitation, the Letter of Intent dated March 15, 1999, as amended, between Porex, Cerus and Baxter Healthcare Corporation (“LOI”). All Purchase Orders placed on or after January 1, 2007 shall also be subject
to the terms and conditions of this Supply Agreement, which shall supersede and replace any other terms and conditions provided by any of the Parties. None of the terms of this Supply Agreement shall be deemed to be waived or amended by any Party
unless such a waiver or amendment specifically references this Supply Agreement and is in writing signed by the Party to be bound. 
 This Agreement is
subject to Porex, Cerus and Fenwal Inc. (successor to Baxter Healthcare Corporation under the LOI) entering into an agreement (“Termination Agreement”), terminating the LOI, the Manufacturing Agreement by and between Baxter Healthcare
S.A., Baxter Healthcare Corporation and Porex Corporation effective January 1, 2003 and such other agreements and other terms and conditions, all as set forth in the Termination Agreement being entered into simultaneously with this Agreement.

  

	 	13.2	Notices 

 All notices and demands required or
permitted to be given or made pursuant to this Supply Agreement shall be in writing and effective when personally given or when placed in an envelope and deposited in the United States mail postage prepaid and return receipt requested, or delivered
by a recognized commercial courier service, addressed as follows: 
 If to Cerus: 
 Chief Executive Officer 
 Cerus Corporation 
 2411 Stanwell Drive 
 Concord, CA 94520 
 cc: Vice President, Legal Affairs by fax ([ * ]) 
 If to Porex: 
 President 
 Porex Corporation 
 500 Bohannon Road 
 Fairburn, Georgia 
  

 Page 14 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 With a copy to: 
 HLTH
Corporation 
 669 River Drive, Center 2 
 Elmwood Park, NJ 07407

 Attn. General Counsel 
 or to such other address as to which
any Party may notify the other Parties. 
  

	 	13.3	Assignment 

 This Supply Agreement shall be binding
upon and inure to the benefit of the Parties, their successors and assigns. This Supply Agreement shall be assignable: (i) by either Party to an affiliate of the Party, in whole or in part, without the consent of the other Party, provided such
affiliate is not a competitor of the other Party; (ii) by either Party with the written consent of the other Party, which consent shall not be unreasonably withheld or delayed (it being understood that withholding such consent on the basis of
the assignee’s financial and/or competitive status shall not be deemed to be unreasonable); or (iii) by any Party without the consent of the other Party to the purchaser of substantially all the assets of its business to which this Supply
Agreement relates or to any corporate successor to a Party by merger, consolidation or otherwise. Any change of control of ownership of fifty (50) percent or more of any Party will be deemed an assignment under (iii) immediately above. For
the purpose of this Section and Section 1.1.2, a “Porex competitor” shall mean those persons, entities or companies who sell competitive products that directly compete with Porex’s products and a “Cerus competitor”
shall mean those companies who sell competitive products to Products in the field of blood pathogen inactivation. Any attempted assignment that does not comply with the terms of this Section shall be void. Each Party shall cause this Supply
Agreement to be assigned in whole to any business organization that purchases its operations supporting this Supply Agreement or to any corporate successor to a Party by merger, consolidation or otherwise. Despite any assignment under this Section,
the Party making the assignment shall remain liable for its obligations as a Party to this Supply Agreement. 
  

	 	13.4	Governing Law 

 This Supply Agreement is deemed to
have been executed in and shall be governed by and construed in accordance with the Uniform Commercial Code as enacted in the State of New York and other applicable laws of the State of New York. The Parties hereby submit to the jurisdiction of the
courts of that State for purposes of resolving any dispute. If particular portions of this Supply Agreement are ruled unenforceable, such portions shall be deleted and all other terms and conditions of this Supply Agreement shall remain in full
force and effect. Except where a remedy is expressly stated to be the exclusive remedy, the rights and remedies of the Parties under this Agreement shall be cumulative and in addition to any other rights or remedies provided by law or equity.

  

 Page 15 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

	 	13.5	Independent Contractors; Relationship of Parties; Waiver; Proceedings 

 13.5.1 The relationship of the Parties under this Supply Agreement shall be and at all times one of independent contractors. No Party is an employee, agent or legal representative of any other Party or shall
have any authority to assume or create obligations on any other Party’s behalf. 
 13.5.2 Cerus shall have the right to revoke
any designation as a Designee made pursuant to Section 1.1.2 of this Supply Agreement, by providing thirty (30) days prior written notice of such to Porex, and thereafter said Designee will no longer be authorized to purchase Components on
Cerus’s behalf or perform any other of the tasks described in Section 1.1.2. 
 13.5.3 Nothing herein shall be construed as
giving any third party, including Designee, any rights, interest or claims hereunder or be entitled to any benefits under or on account of this Supply Agreement as a third-party beneficiary or otherwise and the sole and intended beneficiaries of
this Supply Agreement are Cerus and Porex. 
 13.5.4 Failure of any Party at any time to require performance by any other Party of its
obligations under this Supply Agreement shall in no way affect the right to require such performance at any time thereafter. The waiver by any Party of a breach of any provision of this Supply Agreement shall not constitute a waiver of any
succeeding breach of the same or any other provision. 
 13.5.5 If any Party files any action or brings any proceeding against the
other Party arising out of this Supply Agreement, the prevailing Party in such action or proceeding shall be entitled to recover reasonable attorneys’ fees to be fixed by the court sitting without a jury. 
  

 Page 16 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 IN WITNESS WHEREOF, the Parties have executed this
Supply Agreement in counterparts, effective as of the day and year first written above. 
  

			
	CERUS CORPORATION
		
	By:	 	/s/ William J. Dawson
	Name:	 	William J. Dawson
	Title:	 	VP, Finance and CFO
	
	POREX CORPORATION
		
	By:	 	/s/ William Midgette
	Name:	 	William Midgette
	Title:	 	CEO

  

 Page 17 of 15 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit A 
 Specifications for Platelet Wafers 
 [ * ] 
  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit A-1 
 [ * ] 
  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit B 
 Specifications for Plasma Disks 
 [ * ] 
  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit B-1 
 [ * ] 
  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit C 
 Plasma Disk: Forecasting, Purchasing, Materials Process Flow 
 [ * ] 
  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit D 
 Pricing 
 [ * ] 
  

 EXHIBIT D 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 Exhibit E 
 Minimum Purchase Orders 
 [ * ] 
  

 EXHIBIT E 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit F 
 Capacity Expansion Plan 
 [ * ] 
  

 EXHIBIT F 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit G 
 Quality Obligations 
 The following is to set forth responsibilities of the Parties with respect to Quality
Obligations. 
  

	(A)	Cerus (directly or through its Designee) Responsibilities: 

  

	1.	Provide Porex with current, approved regulatory documents including Specifications. 

  

	2.	Approve manufacturing batch records, review validation documents and other manufacturing documents as applicable. If changes are indicated, provide edited copies to Porex to
facilitate revision. 

  

	3.	Inspect and test all Components shipped hereunder and notify Porex of any Components that does not comply with the Specifications within sixty (60) days from delivery. Such
notice shall specify the reasons for rejection, and Cerus or Designee giving notice (as the case may be) shall thereafter (insofar as they are in its possession and with Porex’s approval) return the rejected Components to Porex [ * ]. If
Cerus or Designee (as the case may be) do not deliver such written notice of rejection within such sixty (60)-day period, Cerus shall be deemed to have accepted the shipment. In the event that Cerus or Designee (as the case may be) delivers notice
to Porex that Cerus or said Designee has rejected any shipment, Cerus or said Designee (as the case may be) shall promptly make available to Porex for examination and testing the Components contained in such rejected shipment (excluding units
consumed in such Designee testing), and Porex shall, within forty-five (45) days, replace the defective and non-conforming Components contained in such shipment and return such Components to Cerus or said Designee (as the case may be), [ *
]. 

  

	(B)	Porex Responsibilities: 

  

	1.	Maintain Specifications and test methods according to Porex SOPs and where applicable, according to mutually agreed upon changes to the Specifications. 

  

	2.	Sample and maintain reserve samples per the Specifications. 

  

	3.	Test and perform quality release of Raw Materials and finished products according to the Specifications. 

  

	4.	Provide prior notification to and obtain written approval from Cerus Quality Assurance of any change to production or test records, [ * ] as set forth in the Specifications
or any other changes to the Specifications, relating to the manufacture of Components, provided, however, Porex will not be required to provide to Cerus any proprietary or trade secret manufacturing process information that does not affect the
Specifications. Perform testing as directed by approved master records, protocols, or validated analytical test procedures. 

  

 EXHIBIT G 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

	5.	Maintain reasonable manufacturing records as agreed to by Cerus and Porex. 

  

	6.	Perform cleaning and process validation as applicable per protocol (which shall be reviewed by CERUS prior to final approval by Porex). 

  

	7.	Review and forward copies of the Certificates of Analysis, and related documents, as required, to Cerus for review. 

  

	8.	Provide evidence of ISO-9000 certification, if requested by Cerus. 

  

	9.	Maintain facility and critical systems in a current state of compliance and validation per cGMP requirements. 

  

	10.	Agree to regular quality audits (no more frequently than annually or for cause) by Cerus at mutually acceptable times. 

  

	11.	Support Cerus regulatory submissions by providing information requested in a timely manner provided such submissions do not require Porex to provide Porex Confidential Information
or trade secrets. 

  

	12.	Notify Cerus, within ten (10) business days (provided Porex has received adequate notice from the FDA to provide such notice), of pending FDA audits that may affect the supply
of Components under this Supply Agreement. Notify Cerus within two (2) business days following Porex’s notification of an FDA audit, if Porex receives less than ten (10) business days advance notice for such an audit. Provide results
of any FDA audit related to Cerus manufacturing. 

  

	13.	Notify Cerus with at least 90 days advance written notice of any change in its manufacturing location for products produced under cGMP unless otherwise prior authorized in writing
by Cerus. 

  

 EXHIBIT G 
 CERUS –POREX AGREEMENT 
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Exhibit H 
 Confidentiality Agreement 
 

 
 AGREEMENT REGARDING THE EXCHANGE 
 OF CONFIDENTIAL INFORMATION 
 In connection with the possible development, manufacture and sale
of certain parts by POREX CORPORATION (“Porex”) to CERUS CORPORATION (“Cerus”) and, collectively with Porex, the “Parties” and each of Porex and Cerus may be referred to individually as a
“Party”), Parties have determined that it is necessary and useful for the Parties to exchange Confidential Information belonging to each Party. Except as set forth below, Confidential Information of a Party shall include all information
relating to such Party’s (or an affiliate of such Party’s) data, books, records, specifications, trade secrets, know-how, formulas, processes, manufacturing methods, techniques, raw materials, sources of supply, applications for particular
technologies, vendor lists, customer lists, employee lists, management systems, financial information, pricing, sales and marketing plans, research and development, inventions, and such other documents and materials that are delivered or otherwise
disclosed (including, without limitation, through facility tours) by such Party to the other Party, whether orally or in writing, and whether or not identified as confidential. Notwithstanding anything to the contrary herein, Confidential
Information shall not include information (i) which is developed or discovered by a Party independent of and without the use of the Confidential Information, (ii) in the possession of both Parties prior to the date of this Agreement and
there is competent evidence to establish such fact, (iii) established at any time to be in the public domain otherwise than by breach of this Agreement, or (iv) is required to be disclosed in compliance with any law, governmental
regulation, or court order, provided the receiving Party shall notify the disclosing Party in advance of any such disclosure, if feasible, and will assist the disclosing Party in pursuing such non-disclosure or protective orders as may be available.
For and in consideration of the mutual promises herein contained, the Parties agree as follows effective the 22 day of February 2007 (the “Effective Date”): 
  

	1.	The receiving Party shall keep the Confidential Information secret and confidential and will not, without the prior written consent of the disclosing Party, use or disclose the
Confidential Information for the term of this Agreement plus five (5) years, except that the confidentiality obligations with respect to any Confidential Information that constitutes a trade secret shall continue in effect for so long as the
information remains a trade secret. The term “trade secret” as used in this Agreement shall mean Confidential Information that: (i) derives economic value, actual or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain secrecy. Without limiting any of the other
provisions hereof, each Party agrees to use at least the same degree of care to avoid and prevent disclosure of the other Party’s Confidential Information as it uses to prevent disclosure of its own Confidential Information, and in no event
less than a reasonable standard of care. 

  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	2.	A receiving Party will restrict transmission of Confidential Information to those of its directors, officers, employees, agents and affiliates who are consulted concerning the
discussions with the disclosing Party and who need to know Confidential Information for the purpose of facilitating those discussions, provided such individuals shall have been advised of the confidential nature of the Confidential Information and
the obligations imposed under this Agreement. The receiving Party shall be responsible to the disclosing Party for any improper disclosure or use of the Confidential Information by such persons. 

  

	3.	No right of title or interest in or to the Confidential Information or license, either expressed or implied, under any patent, trade secret or otherwise is granted hereunder.

  

	4.	All Confidential Information in tangible form received or delivered hereunder shall be returned within thirty (30) days after the request of the Party submitting it.

  

	5.	The Parties agree that they shall not assume or incur any financial liability merely by receipt of Confidential Information, and any financial, supply or other agreement between the
Parties will be covered by subsequent agreement(s). 

  

	6.	Each Party acknowledges and agrees that the misappropriation, unauthorized use or disclosure of the Confidential Information of the other Party or its affiliate would cause
irreparable harm to the other Party. In the event of a breach of any part of this Agreement, the Party which has been damaged by the breach or such affiliate shall be entitled to relief by appropriate legal or equitable means, including but not
limited to a temporary restraining order, temporary injunction and/or permanent injunctive relief, restraining and prohibiting the Party in breach from breaching or continuing to breach the terms of this Agreement. In addition, the Party damaged by
the breach or such affiliate shall be entitled to the recovery of any and all damages incurred as a result of such breach, including cost of enforcement, reasonable attorney’s fees and court costs. 

  

	7.	This Agreement shall be binding upon and shall inure to the benefit of the Parties, their successors, assigns and affiliates, except that no assignment of any right to access the
Confidential Information may be made by the receiving Party without the prior written consent of the disclosing Party. The waiver of any provision in any instance shall not be construed as a waiver in other instances. 

  

	8.	This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof and with respect to the matters contained herein and supersedes all prior
agreements or understandings. This Agreement shall not be modified except in writing signed by both Parties. Notwithstanding anything to the contrary herein, this Agreement shall not release either Party from any obligation to the other Party of
confidentiality or non-use created pursuant to any prior agreement or understanding between the Parties, and each such obligation shall remain in full force and effect. 

  

	9.	The Parties agree that this Agreement is for the purposes of protecting proprietary information only. This Agreement is not a joint venture or other such business arrangement; and
any agreement between the Parties as to joint business activities will be set forth in subsequent written agreements. 

  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

	10.	The Parties acknowledge that each of them (or an affiliate thereof) may be engaged now or in the future in a business similar to or competitive with that of the other, and that the
terms of this agreement shall in no way restrict either Party from engaging in such business activities, except that each Party shall be bound by its agreements herein as they relate to Confidential Information. 

  

	11.	Neither Party under this Agreement shall publicly announce or disclose the existence of this Agreement, or its contents, or any discussions relating thereto, without the prior
consent of the other Party or except as may be required by law, in which case the Party required to make disclosure shall give the other Party the maximum feasible prior notice of such disclosure. 

  

	12.	This Agreement shall be governed by the laws of the State of Georgia, which relate to contracts negotiated, executed and performed within such state, without regard to the conflict
of laws provisions thereof, and only the courts sitting in such state shall have exclusive jurisdiction of the Parties for the purposes of adjudicating any disputes under this Agreement. The Parties hereby consent to personal jurisdiction and venue
in the courts of the State of Georgia and hereby waive any claim or defense that the party lacks minimum contacts with the forum, that the courts of the State of Georgia lack personal jurisdiction of the Parties, or that the courts of the State of
Georgia are an improper or inconvenient venue. The Parties further agree that service of process may be accomplished by certified mail, return receipt. 

  

	13.	This Agreement shall remain in force until the earlier of (i) five (5) years from the Effective Date and (ii) the cancellation of this Agreement by either Party by
written notification to the other Party. No expiration, cancellation or termination of this Agreement for any reason will affect the validity and enforceability of the Confidentiality, non-disclosure and non-use provisions contained in Paragraphs 1
and 2 hereof. 

 The completed signatures of the Parties attest to their mutual agreement to the conditions of this Agreement. 
  

									
	CERUS CORPORATION	 		 	POREX CORPORATION
	 2411 Stanwell Drive
 Concord, California
94520
	 		 	 500 Bohannon Road
 Fairburn, Georgia
30213-2828

					
	By:	 	/s/ Howard G. Ervin	 		 	By:	 	/s/ Victor L. Marrero
	Print Name:	 	Howard G. Ervin	 		 	Print Name:	 	Victor L. Marrero
	Title:	 	Vice President, Legal Affairs	 		 	Title:	 	Executive Vice President & Chief Financial Officer
	Date:	 	February 22, 2007	 		 	Date:	 	February 22, 2007

  

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.Callaway Golf Company Officer Employment Agreement

 EXHIBIT 10.46 
 CALLAWAY GOLF COMPANY 
 OFFICER EMPLOYMENT AGREEMENT 
 This Officer Employment Agreement (“Agreement”) is entered into as of May 1, 2008 by and between Callaway Golf Company, a Delaware
corporation, (the “Company”) and Steven C. McCracken (“Employee”). 
 1. TERM. The Company hereby employs
Employee and Employee hereby accepts employment pursuant to the terms and provisions of this Agreement for the period commencing May 1, 2008 and terminating April 30, 2009, unless this Agreement is earlier terminated as hereinafter
provided. If Employee is still employed upon expiration of this Agreement, Employee’s status shall be one of at-will employment. At all times during the term of this Agreement, Employee shall be considered an employee of the Company within the
meaning of all federal, state and local laws and regulations, including, but not limited to, laws and regulations governing unemployment insurance, workers’ compensation, industrial accident, labor and taxes. 
 2. TITLE. Employee shall serve as Senior Executive Vice President, Chief Administrative Officer, of the Company. Employee’s duties shall be
the usual and customary duties of the offices in which Employee serves. Employee shall report to the Chief Executive Officer or such other person as the Chief Executive Officer shall designate from time to time. The Board of Directors and/or the
Chief Executive Officer of the Company may change employee’s title, position and/or duties at any time. 
 3. SERVICES TO BE
EXCLUSIVE. During the term hereof, Employee agrees to devote Employee’s full productive time and best efforts to the performance of Employee’s duties hereunder pursuant to the supervision and direction of the Company’s Board of
Directors, its Chief Executive Officer or their designee. Employee further agrees, as a condition to the performance by the Company of each and all of its obligations hereunder, that so long as Employee is employed by the Company, Employee will not
directly or indirectly render services of any nature to, otherwise become employed by, or otherwise participate or engage in any other business without the Company’s prior written consent. Nothing herein contained shall be deemed to preclude
Employee from having outside personal investments and involvement with appropriate community or charitable activities, or from devoting a reasonable amount of time to such matters, provided that this shall in no manner interfere with or derogate
from Employee’s work for the Company. 
 4. COMPENSATION. 
 (a) Base Salary. The Company agrees to pay Employee a base salary at the rate of $550,000.00 per year (prorated for any partial
years of employment), payable in equal installments on regularly scheduled Company pay dates. 
 (b) Annual Bonus. The
Company shall provide Employee an opportunity to earn an annual bonus based upon participation in the Company’s applicable bonus plan as it may or may not exist from time to time. Employee’s bonus target percentage is fifty-five percent
(55%) of Employee’s annual base salary. Any annual bonus earned pursuant to an applicable bonus plan shall be payable in the first quarter of the following year. 
 (c) Long Term Incentive. The Company shall provide Employee an opportunity to participate in the Company’s applicable long
term incentive plan as it may or may not exist from time to time. 

 5. EXPENSES AND BENEFITS. 
 (a) Reasonable and Necessary Expenses. In addition to the compensation provided for in Section 4, the Company shall reimburse
Employee for all reasonable, customary and necessary expenses incurred in the performance of Employee’s duties hereunder. Employee shall first account for such expenses in accordance with the policies and procedures set by the Company from time
to time for reimbursement of such expenses. The amount, nature, and extent of such expenses shall always be subject to the control, supervision and direction of the Company and its Chief Executive Officer. 
 (b) Paid Time Off. Employee shall accrue paid time off in accordance with the terms and conditions of the Company’s Paid Time
Off Program, as stated in the Company’s Employee Handbook, and as may be modified from time to time. Subject to the maximum accrual permitted under the Paid Time Off Program, Employee shall accrue paid time off at the rate of thirty
(30) days per year. The time off may be taken any time during the year subject to prior approval by the Company. The Company reserves the right to pay Employee for unused, accrued benefits in lieu of providing time off. 
 (c) Insurance. During Employee’s employment with the Company pursuant to this Agreement, the Company shall provide the
following: 
 (i) Employee may participate in the Company’s health insurance and disability insurance plans as the same
may be modified from time to time; 
 (ii) Subject to all applicable
laws, and satisfaction of the conditions set forth below, Employee may be eligible for an additional disability benefit if Employee becomes permanently disabled. Permanent Disability shall be defined as Employee’s failure to perform or being
unable to perform all or substantially all of Employee’s duties under this Agreement for a continuous period of six (6) months or more on account of any physical or mental disability, either as mutually agreed to by the parties or as
reflected in the opinions of three (3) qualified physicians, one of which has been selected by the Company, one of which has been selected by Employee, and one of which has been selected by the two other physicians jointly. In the event that
Employee is declared permanently disabled (the “Permanent Disability Date”), then Employee shall be entitled to (i) any compensation accrued and unpaid as of the Permanent Disability Date; (ii) a cash payment equal to
Employee’s target bonus for the current year pro-rated to the Permanent Disability Date; (iii) salary continuation payments equal to Employee’s then current base salary at the same rate and on the same schedule for a period of six
(6) months from the Permanent Disability Date; (iv) the immediate vesting of all unvested long-term incentive compensation awards held by Employee that would have vested had Employee continued to perform services pursuant to this Agreement
for a period of six (6) months from the Permanent Disability Date1; (v) the payment of premiums owed for COBRA insurance benefits for a
period of twelve (12) months from the Permanent Disability Date; and (vi) no other payments. The payment of this benefit shall not eliminate Employee’s right to permanent disability insurance benefits if the Employee so qualifies, and
shall not eliminate the right of the Company to terminate Employee’s employment (e.g., a termination for substantial cause pursuant to section 7(b)) without any further payment pursuant to this Agreement. The Company shall be entitled to take
as an offset against any amounts to be paid pursuant to this subsection any amounts received by Employee pursuant to disability or other insurance or similar income sources provided by the Company; and 
  

	 1
	 Note: Performance Cash Units that may vest pursuant to this section will not be paid unless, and then only to the extent
that, the performance criteria underlying such awards has been satisfied. As a result, any potential payment related to the accelerated vesting of such Performance Cash Units will be paid following the completion of the relevant performance period
and the evaluation of whether the performance criteria have been met, and any such payment will be made to Employee at the same time other participants receive payment. 

  

					
		  	2	  	Steven C. McCracken

 (iii) Employee shall receive, if Employee is insurable under usual underwriting
standards, term life insurance coverage on Employee’s life, payable to whomever Employee directs, in an amount equal to three (3) times Employee’s base salary, not to exceed a maximum of $1,500,000.00 in coverage, provided that
Employee completes the required health statement and application and that Employee’s physical condition does not prevent Employee from qualifying for such insurance coverage under reasonable terms and conditions. 
 (d) Retirement. Employee shall be permitted to participate in the Company’s 401(k) retirement investment plan, employee stock
purchase plan and executive deferred compensation plan pursuant to the terms of such plans, as the same may be modified from time to time, to the extent such plans are offered to other officers of the Company. 
 (e) Financial Planning, Annual Executive Physical, Golf Expense Reimbursement Program and Other Perquisites. To the extent the
Company provides financial, tax and estate planning and related services, annual executive physicals, golf expense reimbursements, or any other perquisites and personal benefits to other officers generally from time to time, such services and
perquisites shall be made available to Employee on the same terms and conditions. 
 6. TAXES. Employee acknowledges that Employee is
responsible for all taxes related to Employee’s compensation except for those taxes for which the Company is obligated to pay under applicable law or regulation. Employee agrees that the Company may withhold from Employee’s compensation
any amounts that the Company is required to withhold under applicable law or regulation. 
 7. TERMINATION OF EMPLOYMENT. 

(a) Termination by the Company Without Substantial Cause. Employee’s
employment under this Agreement may be terminated by the Company at any time without substantial cause. In the event of a termination by the Company without substantial cause, Employee shall be entitled to receive (i) any compensation accrued
and unpaid as of the date of termination; (ii) a cash payment equal to Employee’s target bonus for the current year pro-rated over the portion of the year actually employed; and (iii) the immediate vesting of all unvested long-term
incentive compensation awards held by Employee as of the date of termination1. In addition to the foregoing and subject to the provisions thereof,
Employee shall be eligible to receive Special Severance as described in subsection 7(g) and Incentive Payments as described in subsection 7(h). 
 (b) Termination by the Company for Substantial Cause or by Employee Without Good Reason. Employee’s employment under this Agreement may be terminated immediately and at any time by the Company for
substantial cause or by Employee without good reason. In the event of such a termination, Employee shall be entitled to receive (i) any compensation accrued and unpaid as of the date of termination; and (ii) no other severance.
“Substantial cause” shall mean Employee’s (1) failure to substantially perform Employee’s duties; (2) material breach of this Agreement; (3) misconduct, including but not limited to, use or possession of illegal
drugs during work and/or any other action that is damaging or detrimental in a significant manner to the Company; (4) conviction of, or plea of guilty or nolo contendere to, a felony; or (5) failure to cooperate with, or any attempt to
obstruct or improperly influence, any investigation authorized by the Board of Directors or any governmental or regulatory agency. 
  

	 1
	 Note: Performance Cash Units that may vest pursuant to this section will not be paid unless, and then only to the extent
that, the performance criteria underlying such awards has been satisfied. As a result, any potential payment related to the accelerated vesting of such Performance Cash Units will be paid following the completion of the relevant performance period
and the evaluation of whether the performance criteria have been met, and any such payment will be made to Employee at the same time other participants receive payment. 

  

					
		  	3	  	Steven C. McCracken

 (c) Termination by Employee for Good Reason or Non-Renewal. 
 (i) Employee’s employment under this Agreement may be terminated immediately
by Employee for good reason at any time. In the event of a termination by Employee for good reason, Employee shall be entitled to receive (1) any compensation accrued and unpaid as of the date of termination; (2) a cash payment equal to
Employee’s target bonus for the current year pro-rated over the portion of the year actually employed; and (3) the immediate vesting of all unvested long-term incentive compensation awards held by Employee as of the date of termination
1. In addition to the foregoing and subject to the provisions thereof, Employee shall be eligible to receive Special Severance as described in
subsection 7(g) and Incentive Payments as described in subsection 7(h). “Good Reason” shall mean a material breach of this Agreement by the Company. Notwithstanding the foregoing, no basis for a termination for Good Reason will be deemed
to exist unless (a) Employee notifies the Company in writing, within ninety (90) days after the Employee knows that Employee is entitled to terminate for Good Reason, that he or she intends to terminate his or her employment no earlier
than thirty (30) days after providing such notice; (b) the Company does not cure such condition within thirty (30) days following its receipt of such notice or states unequivocally in writing that it does not intend to attempt to cure
such condition; and (c) the Employee resigns from employment prior to the later of the expiration of this Agreement or ninety (90) days after the end of the period described in (b) above.  
 (ii) Should this Agreement expire pursuant to its terms and Employee becomes an
at-will employee pursuant to Section 1, and provided further that the Company has not offered Employee a new employment agreement on substantially the same or better terms and has not otherwise terminated Employee’s employment for
substantial cause or due to permanent disability, then Employee shall have the option for forty-five (45) days following the expiration of this Agreement to terminate Employee’s employment due to the Company’s non-renewal. In the
event of a termination of employment by Employee for non-renewal, Employee shall be entitled to receive (1) any compensation accrued and unpaid as of the date of termination; (2) a cash payment equal to Employee’s target bonus for the
current year pro-rated over the portion of the year actually employed; and (3) the immediate vesting of all unvested long-term incentive compensation awards held by Employee as of the date of termination1. In addition to the foregoing and subject to the provisions thereof, Employee shall be eligible to receive Special Severance as described in subsection 7(g) and Incentive Payments as
described in subsection 7(h). It is expressly understood that if Employee and the Company enter into a new written employment agreement, or if the Company offers Employee a new written employment agreement on substantially the same or better terms,
then Employee shall have no right or option to terminate employment for non-renewal of this Agreement. It is further understood that any termination of Employee’s employment by the Company during any such forty-five day period for reasons other
than substantial cause or permanent disability shall be deemed to be a termination by Employee for non-renewal pursuant to this section. 
 (d) Reserved. 
 (e) Termination by Mutual Agreement of the Parties.
Employee’s employment pursuant to this Agreement may be terminated at any time upon the mutual agreement in writing of the parties. Any such termination of employment shall have the consequences specified in such agreement. 
 (f) Pre-Termination Rights. The Company shall have the right, at its option, to require Employee to vacate Employee’s office
or otherwise remain off the Company’s premises and to cease any and all activities on the Company’s behalf without such action constituting a termination of employment or a breach of this Agreement. 
  

	 1
	 Note: Performance Cash Units that may vest pursuant to this section will not be paid unless, and then only to the extent
that, the performance criteria underlying such awards has been satisfied. As a result, any potential payment related to the accelerated vesting of such Performance Cash Units will be paid following the completion of the relevant performance period
and the evaluation of whether the performance criteria have been met, and any such payment will be made to Employee at the same time other participants receive payment. 

  

					
		  	4	  	Steven C. McCracken

 (g) Special Severance.  
 (i) Amount in Event of a Termination Pursuant to Section 7(a) or 7(c). In the event of a termination pursuant to Sections 7(a)
or 7(c) of this Agreement, Special Severance shall consist of a total amount equal to 0.750 times the sum of Employee’s most recent annual base salary and annual target bonus, payable in equal installments on the same pay schedule as in effect
at the time of termination over a period of eighteen (18) months from the date of termination. 
 (ii) Amount in the
Event of a Termination Pursuant to Section 9. In the event of a termination pursuant to Section 9 of this Agreement, then Special Severance shall consist of a total amount equal to 1.495 times the sum of the Employee’s most recent
annual base salary and annual target bonus, payable in equal installments on the same pay schedule as in effect at the time of termination over a period of thirty-six (36) months from the date of termination. All such Special Severance shall be
subject to the provisions of Section 9(c). 
 (iii) Additional Special Severance. In addition to the Special
Severance referenced above, Employee shall be entitled to the payment of premiums owed for COBRA and/or CalCOBRA insurance benefits and the continuation of the financial, tax and estate planning services (on the then-existing terms and conditions)
through the period during which Employee is receiving Special Severance. In addition, the Company shall offer to provide, at Company expense, up to one (1) year of outplacement services through a professional outplacement firm of the
Company’s choosing. 
 (iv) Conditions on Receiving Special Severance and/or Additional Special Severance.
Notwithstanding anything else to the contrary, it is expressly understood that any obligation of the Company to pay Special Severance and/or Additional Special Severance pursuant to this Agreement shall be subject to Employee’s continued
compliance with the terms and conditions of Sections 8 and 11; Employee’s continued forbearance from directly, indirectly or in any other way, disparaging the Company, its officers or employees, vendors, customers, products or activities,
or otherwise interfering with the Company’s press, public and media relations; and Employee’s execution, prior to receiving any Special Severance or Additional Special Severance, of a release in the form attached hereto as Exhibit B within
the time period set forth therein (but in no event later than sixty (60) days after the date of termination of employment). 
 (h) Incentive Payments.  
 (i) Amount in the Event of a Termination Pursuant to Sections 7(a) or 7(c).
In the event of a termination pursuant to Sections 7(a) or 7(c) of this Agreement, Employee shall be offered the opportunity to receive Incentive Payments in a total amount equal to 0.750 times the sum of Employee’s most recent annual base
salary and target bonus, payable in equal installments on the same pay schedule in effect at the time of termination over a period of eighteen (18) months from the date of termination. 
 (ii) Amount in the Event of a Termination Pursuant to Section 9. In the event of a termination pursuant to Section 9 of
this Agreement, Employee shall be offered the opportunity to receive Incentive Payments in a total amount equal to 1.495 times the sum of Employee’s most recent annual base salary and annual target bonus, payable in equal installments on the
same pay schedule as in effect at the time of termination over a period of thirty-six (36) months from the date of termination. All such Incentive Payments shall be subject to the provisions of Section 9(c). 
 (iii) Terms and Conditions for Incentive Payments. Employee may receive Incentive Payments so long as Employee chooses not to
engage (whether as an owner, employee, agent, consultant, or in any other capacity) in any business or venture that competes with the business of the Company or any of its affiliates. If Employee chooses to engage in such activities, then the
Company shall have no obligation to make further Incentive Payments commencing upon the date which Employee chooses to do so. 
  

					
		  	5	  	Steven C. McCracken

 (iv) Sole Consideration. Employee and the Company agree and acknowledge that the
sole and exclusive consideration for the Incentive Payments is Employee’s forbearance as described in subsection 7(h)(iii) above. In the event that subsection 7(h)(iii) is deemed unenforceable or invalid for any reason, then the Company will
have no obligation to make Incentive Payments for the period of time during which it has been deemed unenforceable or invalid. The obligations and duties of this subsection 7(h) shall be separate and distinct from the other obligations and duties
set forth in this Agreement, and any finding of invalidity or unenforceability of this subsection 7(h) shall have no effect upon the validity or invalidity of the other provisions of this Agreement. 
 (i) Treatment of Special Severance, Additional Special Severance and Incentive Payments. Any Special Severance, Additional Special
Severance and Incentive Payments shall be subject to usual and customary employee payroll practices and all applicable withholding requirements. 
 (j) Other. Except for the amounts specifically provided pursuant to this Section 7, Employee shall not be entitled to any further compensation, bonus, damages, restitution, relocation benefits, or other
severance benefits upon termination of employment. The amounts payable to Employee pursuant to these Sections shall not be treated as damages, but as compensation to which Employee may be entitled by reason of termination of employment under the
applicable circumstances. The Company shall not be entitled to set off against the amounts payable to Employee pursuant to this Section 7 any amounts earned by Employee in other employment after termination of Employee’s employment with
the Company pursuant to this Agreement, or any amounts which might have been earned by Employee in other employment had Employee sought such other employment. The provisions of this Section 7 shall not limit Employee’s rights under or
pursuant to any other agreement or understanding with the Company regarding any pension, profit sharing, insurance or other employee benefit plan of the Company to which Employee is entitled pursuant to the terms of such plan. 
 (k) Compliance with Section 409A. If Employee is a “specified employee” within the meaning of
409A(a)(2)(B)(i) of the Internal Revenue Code (the “Code”), any installment payments by reason of termination will constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus will be
payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations. It is intended that if Employee is a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Code at the time of such separation from service, the foregoing provision shall result in compliance with the requirements of Section 409A(a)(2)(B)(i) of the Code since payments to Employee will either be
payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations or will not be paid until at least six (6) months after separation from service. 
 (l) Forfeiture. If the Company is required to prepare an accounting restatement due to material noncompliance of the Company, as a
result of the intentional misconduct or gross negligence of the Employee, with any financial reporting requirement under the United States securities laws, or if the Employee is one of the persons subject to automatic forfeiture under section 304 of
the Sarbanes-Oxley Act of 2002, then, in addition to any penalty prescribed by section 304, the Employee shall forfeit all of the following: any bonus paid in the twelve (12) month period following the date of the filing of the financial
document embodying the restatement, any gain on the sale of Company securities during that same period, the right to receive Special Severance and Incentive Payments, and any unvested and/or unexercised long-term incentive compensation awards.

 8. OTHER EMPLOYEE DUTIES AND OBLIGATIONS. 
 In addition to any other duties and obligations set forth in this Agreement, Employee shall be obligated as follows: 
 (a) Compliance. Employee shall be required to comply with all policies and procedures of the Company as such shall be adopted,
modified or otherwise established by the Company from time to time, including but not limited to the Company’s Code of Conduct. While employed by the Company pursuant to this Agreement, or while receiving severance, incentive or other payments
or consideration from the Company following termination of this Agreement, Employee shall disclose in writing to the Company’s General Counsel any conviction of, or plea of guilty or nolo contendere to, a felony. 
  

					
		  	6	  	Steven C. McCracken

 (b) Trade Secrets and Confidential Information. 
 (i) As used in this Agreement, the term “Trade Secrets and Confidential Information” means information, whether written or oral,
not generally available to the public, regardless of whether it is suitable to be patented, copyrighted and/or trademarked, which is received from the Company and/or its affiliates, either directly or indirectly, including but not limited to
concepts, ideas, plans and strategies involved in the Company’s and/or its affiliates’ products, the processes, formulae and techniques disclosed by the Company and/or its affiliates to Employee or observed by Employee, the designs,
inventions and innovations and related plans, strategies and applications which Employee develops during the term of this Agreement in connection with the work performed by Employee for the Company and/or its affiliates; and third party information
which the Company and/or its affiliates has/have agreed to keep confidential. 
 (ii) While employed by the Company, Employee
will have access to and become familiar with Trade Secrets and Confidential Information. Employee acknowledges that Trade Secrets and Confidential Information are owned and shall continue to be owned solely by the Company and/or its affiliates.
Employee agrees that Employee will not, at any time, whether during or subsequent to Employee’s employment by the Company and/or its affiliates, use or disclose Trade Secrets and Confidential Information for any competitive purpose or divulge
the same to any person other than the Company or persons with respect to whom the Company has given its written consent, unless Employee is compelled to make disclosure by governmental process. In the event Employee believes that Employee is legally
required to disclose any Trade Secrets or Confidential Information, Employee shall give reasonable notice to the Company prior to disclosing such information and shall assist the Company in taking such legally permissible steps as are reasonable and
necessary to protect the Trade Secrets or Confidential Information, including, but not limited to execution by the receiving party of a non-disclosure agreement in a form acceptable to the Company. 
 (iii) Employee agrees to execute such secrecy, non-disclosure, patent, trademark, copyright and other proprietary rights agreements, if
any, as the Company may from time to time reasonably require. 
 (iv) The provisions of this subsection 8(b) shall survive the
termination or expiration of this Agreement, and shall be binding upon Employee in perpetuity. 
 (c) Assignment of
Rights. 
 (i) As used in this Agreement, “Designs, Inventions and Innovations,” whether or not they have been
patented, trademarked, or copyrighted, include, but are not limited to designs, inventions, innovations, ideas, improvements, processes, sources of and uses for materials, apparatus, plans, systems and computer programs relating to the design,
manufacture, use, marketing, distribution and management of the Company’s and/or its affiliates’ products. 
 (ii)
As a material part of the terms and understandings of this Agreement, Employee agrees to assign to the Company all Designs, Inventions and Innovations developed, conceived and/or reduced to practice by Employee, alone or with anyone else, in
connection with the work performed by Employee for the Company during Employee’s employment with the Company, regardless of whether they are suitable to be patented, trademarked and/or copyrighted. 
  

					
		  	7	  	Steven C. McCracken

 (iii) Employee agrees to disclose in writing to the President of the Company any Design,
Invention or Innovation relating to the business of the Company and/or its affiliates, which Employee develops, conceives and/or reduces to practice in connection with any work performed by Employee for the Company, either alone or with anyone else,
while employed by the Company and/or within twelve (12) months of the termination of employment. Employee shall disclose all Designs, Inventions and Innovations to the Company, even if Employee does not believe that Employee is required under
this Agreement, or pursuant to California Labor Code Section 2870, to assign Employee’s interest in such Design, Invention or Innovation to the Company. If the Company and Employee disagree as to whether or not a Design, Invention or
Innovation is included within the terms of this Agreement, it will be the responsibility of Employee to prove that it is not included. 
 (iv) Pursuant to California Labor Code Section 2870, the obligation to assign as provided in this Agreement does not apply to any Design, Invention or Innovation to the extent such obligation would conflict with
any state or federal law. The obligation to assign as provided in this Agreement does not apply to any Design, Invention or Innovation that Employee developed entirely on Employee’s own time without using the Company’s equipment, supplies,
facilities or Trade Secrets and Confidential Information, except those Designs, Inventions or Innovations that either relate at the time of conception or reduction to practice to the Company’s and/or its affiliates’ business, or actual or
demonstrably anticipated research of the Company and/or its affiliates; or result from any work performed by Employee for the Company and/or its affiliates. 
 (v) Employee agrees that any Design, Invention and/or Innovation which is required under the provisions of this Agreement to be assigned
to the Company shall be the sole and exclusive property of the Company. Upon the Company’s request, at no expense to Employee, Employee shall execute any and all proper applications for patents, copyrights and/or trademarks, assignments to the
Company, and all other applicable documents, and will give testimony when and where requested to perfect the title and/or patents (both within and without the United States) in all Designs, Inventions and Innovations belonging to the Company.

 (vi) The provisions of this subsection 8(c) shall survive the termination or expiration of this Agreement, and shall be
binding upon Employee in perpetuity. 
 (d) Competing Business. To the fullest extent permitted by law, Employee agrees
that, while employed by the Company, Employee will not, directly or indirectly (whether as employee, agent, consultant, holder of a beneficial interest, creditor, or in any other capacity), engage in any business or venture which conflicts with
Employee’s duties under this Agreement, including services that are directly or indirectly in competition with the business of the Company or any of its affiliates, or have any interest in any person, firm, corporation, or venture which engages
directly or indirectly in competition with the business of the Company or any of its affiliates. For purposes of this section, the ownership of interests in a broadly based mutual fund shall not constitute ownership of the stocks held by the fund.

 (e) Other Employees. Except as may be required in the performance of Employee’s duties hereunder, Employee
shall not cause or induce, or attempt to cause or induce, any person now or hereafter employed by the Company or any of its affiliates to terminate such employment. This obligation shall remain in effect while Employee is employed by the Company and
for a period of one (1) year thereafter. 
 (f) Suppliers. While employed by the Company, and for one
(1) year thereafter, Employee shall not cause or induce, or attempt to cause or induce, any person or firm supplying goods, services or credit to the Company or any of its affiliates to diminish or cease furnishing such goods, services or
credit. 
 (g) Conflict of Interest. While employed by the Company, Employee shall comply with all Company policies
regarding actual or apparent conflicts of interest with respect to Employee’s duties and obligations to the Company. 
  

					
		  	8	  	Steven C. McCracken

 (h) Non-Disparagement. While employed by the Company, and for one (1) year
thereafter, Employee shall not in any way undertake to harm, injure or disparage the Company, its officers, directors, employees, agents, affiliates, vendors, products, or customers, or their successors, or in any other way exhibit an attitude of
hostility toward them. 
 (i) Surrender of Equipment, Books and Records. Employee understands and agrees that all
equipment, books, records, customer lists and documents connected with the business of the Company and/or its affiliates are the property of and belong to the Company. Under no circumstances shall Employee remove from the Company’s facilities
any of the Company’s and/or its affiliates’ equipment, books, records, documents, lists or any copies of the same without the Company’s permission, nor shall Employee make any copies of the Company’s and/or its affiliates’
books, records, documents or lists for use outside the Company’s office except as specifically authorized by the Company. Employee shall return to the Company and/or its affiliates all equipment, books, records, documents and customer lists
belonging to the Company and/or its affiliates upon termination of Employee’s employment with the Company. 
 9. RIGHTS UPON A CHANGE
IN CONTROL. 
 (a) Notwithstanding anything in this Agreement to the contrary, if upon or at any time during the term of
this Agreement there is a Termination Event (as defined below) that occurs within one (1) year following any Change in Control (as defined in Exhibit A), Employee shall be treated as if Employee had been terminated by the Company without
substantial cause pursuant to Section 7(a). 
 (b) A “Termination Event” shall mean the occurrence of any one
or more of the following, and in the absence of Employee’s death, or any of the factors enumerated in Section 7(b) providing for termination by the Company for substantial cause: 
 (i) the termination or material breach of this Agreement by the Company; 
 (ii) a failure by the Company to obtain the assumption of this Agreement by any successor to the Company or any assignee of all or
substantially all of the Company’s assets or business; 
 (iii) any material diminishment in the title, position, duties,
responsibilities or status that Employee had with the Company, as a publicly traded entity, immediately prior to the Change in Control; 
 (iv) any reduction, limitation or failure to pay or provide any of the compensation, reimbursable expenses, long-term incentive compensation awards, incentive programs, or other benefits or perquisites provided to
Employee under the terms of this Agreement or any other agreement or understanding between the Company and Employee, or pursuant to the Company’s policies and past practices as of the date immediately prior to the Change in Control; or

 (v) any requirement that Employee relocate or any assignment to Employee of duties that would make it unreasonably
difficult for Employee to maintain the principal residence Employee had immediately prior to the Change in Control. 
 (c) To
the extent that any or all of the payments and benefits provided for in this Agreement and pursuant to any other agreements with Employee constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code
(the “Code”) and, but for this Section 9, would be subject to the excise tax imposed by Section 4999 of the Code, then the aggregate amount of such payments and benefits shall be reduced by the minimum amounts necessary to equal
one dollar less than the amount which would result in such payments and benefits being subject to such excise tax. The reduction, unless the employee elects otherwise, shall be in such order that provides employee with the greatest after-tax amount
possible. All determinations required to be made under this Section 9, including whether a payment would result in a parachute payment and 

  

					
		  	9	  	Steven C. McCracken

 
the assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized accounting firm agreed to by the Company and
Employee. The Company shall pay the cost of the accounting firm, and the accounting firm shall provide detailed supporting calculations both to the Company and the Employee. The determination of the accounting firm shall be final and binding upon
the Company and the Employee, except that if, as a result of subsequent events or conditions (including a subsequent payment or the absence of a subsequent payment or a determination by the Internal Revenue Service or applicable court), it is
determined that the excess parachute payments, excise tax or any reduction in the amount of payments and benefits, is or should be other than as determined initially, an appropriate adjustment shall be made, as applicable, to reflect the final
determination. 
 10. MISCELLANEOUS. 
 (a) Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and the successors and assigns of the Company. Employee shall have no right to assign Employee’s
rights, benefits, duties, obligations or other interests in this Agreement, it being understood that this Agreement is personal to Employee. 
 (b) Entire Understanding. This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof, and no other representations, warranties or agreements whatsoever as
to that subject matter have been made by Employee or the Company. This Agreement shall not be modified, amended or terminated except by another instrument in writing executed by the parties hereto. This Agreement replaces and supersedes any and all
prior understandings or agreements between Employee and the Company regarding employment. 
 (c) Notices. Any notice,
request, demand, or other communication required or permitted hereunder, shall be deemed properly given when actually received or within five (5) days of mailing by certified or registered mail, postage prepaid, to Employee at the address
currently on file with the Company, and to the Company at: 
 Company:        Callaway Golf Company

  2180 Rutherford Road 
  Carlsbad, California 92008 
  Attn: George Fellows 
  President and Chief Executive Officer 
 or to such other address as Employee or the Company may from time to time furnish, in writing, to the other. 
 (d)
Headings. The headings of the several sections and paragraphs of this Agreement are inserted solely for the convenience of reference and are not a part of and are not intended to govern, limit or aid in the construction of any term or
provision hereof. 
 (e) Waiver. Failure of either party at any time to require performance by the other of any
provision of this Agreement shall in no way affect that party’s rights thereafter to enforce the same, nor shall the waiver by either party of any breach of any provision hereof be held to be a waiver of any succeeding breach of any provision
or a waiver of the provision itself. 
 (f) Applicable Law. This Agreement shall constitute a contract under the
internal laws of the State of California and shall be governed and construed in accordance with the laws of said state as to both interpretation and performance. 
 (g) Severability. In the event any provision or provisions of this Agreement is or are held invalid, the remaining provisions of
this Agreement shall not be affected thereby. 
  

					
		  	10	  	Steven C. McCracken

 (h) Advertising Waiver. Employee agrees to permit the Company and/or its
affiliates, and persons or other organizations authorized by the Company and/or its affiliates, to use, publish and distribute advertising or sales promotional literature concerning the products of the Company and/or its affiliates, or the machinery
and equipment used in the manufacture thereof, in which Employee’s name and/or pictures of Employee taken in the course of Employee’s provision of services to the Company and/or its affiliates, appear. Employee hereby waives and releases
any claim or right Employee may otherwise have arising out of such use, publication or distribution. 
 (i)
Counterparts. This Agreement may be executed in one or more counterparts which, when fully executed by the parties, shall be treated as one agreement. 
 11. IRREVOCABLE ARBITRATION OF DISPUTES. 
 (a) Employee and the Company
agree that any dispute, controversy or claim arising hereunder or in any way related to this Agreement, its interpretation, enforceability, or applicability, or relating to Employee’s employment, or the termination thereof, that cannot be
resolved by mutual agreement of the parties shall be submitted to binding arbitration. This includes, but is not limited to, alleged violations of federal, state and/or local statutes, claims based on any purported breach of duty arising in contract
or tort, including breach of contract, breach of the covenant of good faith and fair dealing, violation of public policy, violation of any statutory, contractual or common law rights, but excluding workers’ compensation, unemployment matters,
or any matter falling within the jurisdiction of the state Labor Commissioner. The parties agree that arbitration is the parties’ only recourse for such claims and hereby waive the right to pursue such claims in any other forum, unless
otherwise provided by law. Any court action involving a dispute which is not subject to arbitration shall be stayed pending arbitration of arbitrable disputes. 
 (b) Employee and the Company agree that the arbitrator shall have the authority to issue provisional relief. Employee and the Company
further agree that each has the right, pursuant to California Code of Civil Procedure section 1281.8, to apply to a court for a provisional remedy in connection with an arbitrable dispute so as to prevent the arbitration from being rendered
ineffective. 
 (c) Any demand for arbitration shall be in writing and must be communicated to the other party prior to
the expiration of the applicable statute of limitations. 
 (d) The arbitration shall be administered by JAMS pursuant
to its Employment Arbitration Rules and Procedures. The arbitration shall be conducted in San Diego by a former or retired judge or attorney with at least 10 years experience in employment-related disputes, or a non-attorney with like experience in
the area of dispute, who shall have the power to hear motions, control discovery, conduct hearings and otherwise do all that is necessary to resolve the matter. The parties must mutually agree on the arbitrator. If the parties cannot agree on the
arbitrator after their best efforts, an arbitrator will be selected from JAMS pursuant to its Employment Arbitration Rules and Procedures. The Company shall pay the costs of the arbitrator’s fees. 
 (e) The arbitration will be decided upon a written decision of the arbitrator stating the essential findings and conclusions upon which
the award is based. The arbitrator shall have the authority to award damages, if any, to the extent that they are available under applicable law(s). The arbitration award shall be final and binding, and may be entered as a judgment in any court
having competent jurisdiction. Either party may seek review pursuant to California Code of Civil Procedure section 1286, et seq. 
  

					
		  	11	  	Steven C. McCracken

 (f) It is expressly understood that the parties have chosen arbitration to avoid the
burdens, costs and publicity of a court proceeding, and the arbitrator is expected to handle all aspects of the matter, including discovery and any hearings, in such a way as to minimize the expense, time, burden and publicity of the process, while
assuring a fair and just result. In particular, the parties expect that the arbitrator will limit discovery by controlling the amount of discovery that may be taken (e.g., the number of depositions or interrogatories) and by restricting the scope of
discovery only to those matters clearly relevant to the dispute. However, at a minimum, each party will be entitled to at least one (1) deposition and shall have access to essential documents and witnesses as determined by the arbitrator. 

 (g) The provisions of this Section shall survive the expiration or termination of the Agreement, and shall be binding
upon the parties. 
 THE PARTIES HAVE READ SECTION 11 AND IRREVOCABLY AGREE TO ARBITRATE ANY DISPUTE IDENTIFIED ABOVE. 
  

							
		  	_______ (Employee)	  	_______ (Company)	  	

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective the date first
written above. 
  

									
	EMPLOYEE	 		 		 	COMPANY
				
		 		 		 	 Callaway Golf Company,
 a Delaware
corporation

				
	/s/ Steven C. McCracken	 		 	By:	 	/s/ George Fellows
	Steven C. McCracken	 		 		 	George Fellows
		 		 		 	President and Chief Executive Officer

  

					
		  	12	  	Steven C. McCracken

 EXHIBIT A 
 CHANGE IN CONTROL 
 A “Change in Control” means the following and shall be deemed to occur
if any of the following events occurs: 
 1. Any person, entity or group, within the meaning of Section 13(d) or 14(d) of the Securities
Exchange Act of 1934 (the “Exchange Act”) but excluding the Company and its subsidiaries and any employee benefit or stock ownership plan of the Company or its subsidiaries and also excluding an underwriter or underwriting syndicate that
has acquired the Company’s securities solely in connection with a public offering thereof (such person, entity or group being referred to herein as a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 30% or more of either the then outstanding shares of Common Stock or the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors; or 
 2. Individuals who, as of the effective date hereof, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board of Directors of the Company, provided that any individual who becomes a director after the effective date hereof whose election, or nomination for election by the Company’s shareholders, is
approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered to be a member of the Incumbent Board unless that individual was nominated or elected by any Person having the power to exercise,
through beneficial ownership, voting agreement and/or proxy, 20% or more of either the outstanding shares of Common Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the
election of directors, in which case that individual shall not be considered to be a member of the Incumbent Board unless such individual’s election or nomination for election by the Company’s shareholders is approved by a vote of at least
two-thirds of the directors then comprising the Incumbent Board; or 
 3. Consummation by the Company of the sale, lease, exchange or other
disposition, in one transaction or a series of transactions, by the Company of all or substantially all of the Company’s assets or a reorganization or merger or consolidation of the Company with any other person, entity or corporation, other
than 
 (a) a reorganization or merger or consolidation that would result in the voting securities of the Company outstanding
immediately prior thereto (or, in the case of a reorganization or merger or consolidation that is preceded or accomplished by an acquisition or series of related acquisitions by any Person, by tender or exchange offer or otherwise, of voting
securities representing 5% or more of the combined voting power of all securities of the Company, immediately prior to such acquisition or the first acquisition in such series of acquisitions) continuing to represent, either by remaining outstanding
or by being converted into voting securities of another entity, more than 50% of the combined voting power of the voting securities of the Company or such other entity outstanding immediately after such reorganization or merger or consolidation (or
series of related transactions involving such a reorganization or merger or consolidation), or 
 (b) a reorganization or
merger or consolidation effected to implement a recapitalization or reincorporation of the Company (or similar transaction) that does not result in a material change in beneficial ownership of the voting securities of the Company or its successor;
or 
 4. Approval by the shareholders of the Company or an order by a court of competent jurisdiction of a plan of complete liquidation or
dissolution of the Company. 
  

					
		  	13	  	Steven C. McCracken

 EXHIBIT B 
 RELEASE OF CLAIMS – GENERAL RELEASE 
 This Release of Claims – General Release
(“Release”) is effective as of the date provided for in Section 10 below, and is made by and between
                         (“Employee”), pursuant to the Officer Employment Agreement (the
“Agreement”) to which this document is attached, and Callaway Golf Company (the “Company”), a Delaware corporation. This Release is entered into in light of the fact that Employee’s employment with the Company will
terminate and Employee will be eligible to receive Special Severance pursuant to Section 7 of the Agreement. 
 1. Consideration.
In consideration for the payment of Special Severance, Employee agrees to the terms and provisions set forth in this Release. 
 2.
Release. 
 (a) Employee hereby irrevocably and unconditionally releases and forever discharges the Company, its
predecessors, successors, subsidiaries, affiliates and benefit plans, and each and every past, present and future officer, director, employee, representative and attorney of the Company, its, predecessors, successors, subsidiaries, affiliates and
benefit plans, and their successors and assigns (collectively referred to herein as the “Releasees”), from any, every, and all charges, complaints, claims, causes of action, and lawsuits of any kind whatsoever, including, to the extent
permitted under the law, all claims which Employee has against the Releasees, or any of them, arising from or in any way related to circumstances or events arising out of Employee’s employment by the Company, including, but not limited to,
harassment, discrimination, retaliation, failure to progressively discipline Employee, termination of employment, violation of state and/or federal wage and hour laws, violations of any notice requirement, violations of the California Labor Code, or
breach of any employment agreement, together with any and all other claims Employee now has or may have against the Releasees through and including Employee’s date of termination from the Company, provided, however, that Employee does not waive
or release the right to enforce the Agreement, the right to enforce any stock option, restricted stock, retirement, welfare or other benefit plan, agreement or arrangement, or any rights to indemnification or reimbursement, whether pursuant to
charter and by-laws of the Company or its affiliates, applicable state laws, D&O insurance policies, or otherwise. EMPLOYEE ALSO SPECIFICALLY AGREES AND ACKNOWLEDGES THAT EMPLOYEE IS WAIVING ANY RIGHT TO RECOVERY AGAINST RELEASEES BASED ON STATE
OR FEDERAL AGE, SEX, PREGNANCY, RACE, COLOR, NATIONAL ORIGIN, MARITAL STATUS, RELIGION, VETERAN STATUS, DISABILITY, SEXUAL ORIENTATION, MEDICAL CONDITION OR OTHER ANTI-DISCRIMINATION LAWS, INCLUDING, WITHOUT LIMITATION, TITLE VII, THE AMERICANS WITH
DISABILITIES ACT, THE CALIFORNIA FAIR HOUSING AND EMPLOYMENT ACT, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE FAMILY MEDICAL RIGHTS ACT, THE CALIFORNIA FAMILY RIGHTS ACT OR BASED ON THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OR THE WORKER
ADJUSTMENT AND RETRAINING NOTIFICATION ACT, ALL AS AMENDED, WHETHER SUCH CLAIM BE BASED UPON AN ACTION FILED BY EMPLOYEE OR A GOVERNMENTAL AGENCY. 
 (b) Employee understands that rights or claims under the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621, et seq.) that may arise after the date this Release is executed are not waived.
Nothing in this Release shall be construed to prohibit Employee from exercising Employee’s right to file a charge with the Equal Employment Opportunity Commission or from participating in any investigation or proceeding conducted by the Equal
Employment Opportunity Commission. 
 (c) Employee understands and agrees that if Employee files such a charge, the Company
has the right to raise the defense that the charge is barred by this Release. 
  

					
		  	14	  	Steven C. McCracken

 3. Employee also waives all rights under section 1542 of the Civil Code of the State of California.
Section 1542 provides as follows: 
 A general release does not extend to claims which the creditor does not know or suspect to exist in
his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. 
 4.
Governing Law. This Release shall be construed and enforced in accordance with the internal laws of the State of California. 
 5.
Binding Effect. This Release shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns. 
 6. Irrevocable Arbitration of Disputes. 
 (a) Employee and the Company agree that any dispute, controversy or claim arising hereunder or in any way related to this Release, its interpretation, enforceability, or applicability, or relating to
Employee’s employment, or the termination thereof, that cannot be resolved by mutual agreement of the parties shall be submitted to binding arbitration. This includes, but is not limited to, alleged violations of federal, state and/or local
statutes, claims based on any purported breach of duty arising in contract or tort, including breach of contract, breach of the covenant of good faith and fair dealing, violation of public policy, violation of any statutory, contractual or common
law rights, but excluding workers’ compensation, unemployment matters, or any matter falling within the jurisdiction of the state Labor Commissioner. The parties agree that arbitration is the parties’ only recourse for such claims and
hereby waive the right to pursue such claims in any other forum, unless otherwise provided by law. Any court action involving a dispute which is not subject to arbitration shall be stayed pending arbitration of arbitrable disputes. 

(b) Employee and the Company agree that the arbitrator shall have the authority to issue provisional relief. Employee and the
Company further agree that each has the right, pursuant to California Code of Civil Procedure section 1281.8, to apply to a court for a provisional remedy in connection with an arbitrable dispute so as to prevent the arbitration from being rendered
ineffective. 
 (c) Any demand for arbitration shall be in writing and must be communicated to the other party prior to
the expiration of the applicable statute of limitations. 
 (d) The arbitration shall be administered by JAMS pursuant
to its Employment Arbitration Rules and Procedures. The arbitration shall be conducted in San Diego by a former or retired judge or attorney with at least 10 years experience in employment-related disputes, or a non-attorney with like experience in
the area of dispute, who shall have the power to hear motions, control discovery, conduct hearings and otherwise do all that is necessary to resolve the matter. The parties must mutually agree on the arbitrator. If the parties cannot agree on the
arbitrator after their best efforts, an arbitrator will be selected from JAMS pursuant to its Employment Arbitration Rules and Procedures. The Company shall pay the costs of the arbitrator’s fees. 
 (e) The arbitration will be decided upon a written decision of the arbitrator stating the essential findings and conclusions upon which
the award is based. The arbitrator shall have the authority to award damages, if any, to the extent that they are available under applicable law(s). The arbitration award shall be final and binding, and may be entered as a judgment in any court
having competent jurisdiction. Either party may seek review pursuant to California Code of Civil Procedure section 1286, et seq. 
  

					
		  	15	  	Steven C. McCracken

 (f) It is expressly understood that the parties have chosen arbitration to avoid the
burdens, costs and publicity of a court proceeding, and the arbitrator is expected to handle all aspects of the matter, including discovery and any hearings, in such a way as to minimize the expense, time, burden and publicity of the process, while
assuring a fair and just result. In particular, the parties expect that the arbitrator will limit discovery by controlling the amount of discovery that may be taken (e.g., the number of depositions or interrogatories) and by restricting the scope of
discovery only to those matters clearly relevant to the dispute. However, at a minimum, each party will be entitled to at least one deposition and shall have access to essential documents and witnesses as determined by the arbitrator.

 (g) The provisions of this Section shall survive the expiration or termination of the Release, and shall be binding
upon the parties. 
 THE PARTIES HAVE READ SECTION 6 AND IRREVOCABLY AGREE TO ARBITRATE ANY DISPUTE IDENTIFIED ABOVE. 
  

							
		  	_______ (Employee)	  	_______ (Company)	  	

 7. Counterparts. This Release may be executed in one or more counterparts which, when fully
executed by the parties, shall be treated as one agreement. 
 8. Advice of Counsel. The Company hereby advises Employee in writing to
discuss this Release with an attorney before executing it. Employee further acknowledges that the Company will provide Employee twenty-one (21) days within which to review and consider this Release before signing it. Should Employee decide not
to use the full twenty-one (21) days, then Employee knowingly and voluntarily waives any claims that he was not in fact given that period of time or did not use the entire twenty-one (21) days to consult an attorney and/or consider this
Release. 
 9. Right to Revoke. The parties acknowledge and agree that Employee may revoke this Release for up to seven
(7) calendar days following Employee’s execution of this Release and that it shall not become effective or enforceable until the revocation period has expired. The parties further acknowledge and agree that such revocation must be in
writing addressed to Steven C. McCracken, Senior Executive Vice President and Chief Administrative Officer, Callaway Golf Company, 2180 Rutherford Road, Carlsbad, California 92008, and received no later than midnight on the seventh day following the
execution of this Release by Employee. If Employee revokes this Release under this section, it shall not be effective or enforceable, and Employee will not receive the consideration described in Section 1 above. 
 10. Effective Date. If Employee does not revoke this Release in the timeframe specified in Section 9 above, the Release shall become
effective at 12:01 a.m. on the eighth day after it is fully executed by the parties. 
 11. Severability. In the event any provision
or provisions of this Release is or are held invalid, the remaining provisions of this Release shall not be affected thereby. 
 IN WITNESS
WHEREOF, the parties hereto have executed this Release on the dates set forth below, to be effective as of the date set forth in Section 10 above. 
  

											
	Employee	 		 		 	Callaway Golf Company, a Delaware corporation
	
	EXHIBIT ONLY – DO NOT SIGN AT THIS TIME
				
	 	 		 	By:	 	 
						
	Dated:	 	 	 		 		 	Dated:	 	 

  

					
		  	16	  	Steven C. McCracken

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