Document:

Exhibit
10.9

 

Certain
identified information in this exhibit has been excluded because the information is (i) not material and (ii) would be competitively
harmful if publicly disclosed. Such excluded information is designated by [**].

 

SCHEDULE
B

 

Statement
of Work Number 2

To
the Engagement Contract

Dated
March 1, 2019

By
and between Purple Innovation, Inc. and FTI Consulting, Inc.

 

This
Statement of Work Number 2 (“SOW 2”) to the Engagement Contract dated March 1, 2019 (“Agreement”), is
made and entered into as of March 12, 2019 (“Effective Date”), by and between Purple Innovation, Inc. on its own behalf
and on behalf of its subsidiaries and affiliates worldwide (hereinafter referred to as “Client”) and FTI Consulting,
Inc. (hereinafter referred to as “FTI”).

 

Client
and FTI, for and in consideration of the mutual covenants set forth in the Agreement and in this SOW, and other good and valuable
consideration, the sufficiency of which is acknowledged, the parties agree as follows:

 

		1.	FTI
                                         shall supply the services at the fees and in the term set forth in this SOW.

		2.	In
                                         the event of any conflict between the terms of this SOW and the Agreement, the Agreement
                                         shall govern.

 

The
FTI team, working in conjunction with the Client staff and at the direction of the Client management team, will provide the following
services for Temporary Officers, Hourly Temporary Employees and Services.

  

Scope
of Services

 

The
scope of this SOW includes the following activities and deliverables, to the extent requested by the Client management:

  

		●	FTI
                                         will provide Craig Phillips to serves as the Company’s interim CFO, until a permanent
                                         CFO is hired by the Company, reporting to the Company’s Board of Directors, subject
                                         to FTI’s internal approval from its risk management team, confirmation that the
                                         Company has a Directors and Officers Liability insurance policy in accordance with Section
                                         6.3 of the FTI Standard Terms and Conditions attached hereto, and a copy of the signed
                                         Board of Directors’ resolution (or similar document) as official confirmation of
                                         the appointment.

  

     

     

    

 

		●	Mr.
                                         Phillips will report to the CEO (“Joe Megibow”), work with senior management
                                         of the Company, the Board of Directors and other Company professionals and will, along
                                         with any additional Hourly Temporary Staff (as defined below), perform the ordinary and
                                         typical duties of a CFO and officer of a public company, and the staff of a CFO, as the
                                         CEO and the CFO may from time to time determine, and shall at all times report to and
                                         be subject to supervision by the CEO.

  

In
addition to providing the Temporary Officer, FTI may also provide the Client with additional staff (the “Hourly Temporary
Staff” and, together with the Temporary Officer, the “FTI Professionals”), subject to the terms and conditions
of this Agreement. The Hourly Temporary Staff may be assisted by or replaced by other FTI professionals reasonably satisfactory
to the Board and/or Committee, as required, who shall also become Hourly Temporary Staff for purposes hereof. FTI will keep the
CEO reasonably informed as to FTI’s staffing and will not add additional Hourly Temporary Staff to the assignment without
first consulting with the Client.

 

The
Services do not include (i) audit, legal, tax, environmental, accounting, actuarial, employee benefits, insurance advice or similar
specialist and other professional services which are typically outsourced and which shall be obtained directly where required
by the Client at Client’s expense; or (ii) investment banking, including valuation or securities analysis, including advising
any party or representation of the Client on the purchase, sale or exchange of securities or representation of the Client in securities
transactions. FTI is not a registered broker-dealer in any jurisdiction and will not offer advice or its opinion or any testimony
on valuation or exchanges of securities or on any matter for which FTI is not appropriately licensed or accredited. An affiliate
of FTI is a broker-dealer but is not being engaged by the Client to provide any investment banking or broker-dealer services.
The Client agrees to supply office space, and office and support services to FTI as reasonably requested by FTI in connection
with the performance of its duties hereunder.

 

Compensation
to FTI 

 

Monthly
Fee

 

For
services rendered in connection with this assignment, the Client agrees to pay FTI a monthly, non-refundable advisory fee for
the services of Craig Phillips. The monthly fee shall be calculated based on the discounted standard hourly rates, capped at $90,000
per month (“Monthly Fee Cap”). In any month where billings for our staff would exceed [**] (including for the Interim
CFO and any additional staff), the Monthly Fee Cap for the Interim CFO will be reduced to [**]. In any month where billings for
our staff would exceed [**] (including for the Interim CFO and any additional staff), the Monthly Fee Cap for the Interim CFO
will be reduced to [**].To the extent that the average weekly hours for any FTI professional exceeds 50 hours per week during
any calendar month, FTI will be entitled to additional compensation at Discounted Standard Hourly Rates and/or FTI and the Client
will discuss the addition of additional resources to the Engagement.

 

Hourly
Temporary Staff

 

For
services rendered by additional FTI staff, they will be billed at their current hourly rate. Fees are payable in advance and may
be billed not less frequently than monthly.

 

    Page
                                         2
                                         of 5

     

    

 

FTI
Standard Hourly Rates

The monthly fee provided for the Interim CFO is a discounted fee that is less than the fees that the Client would incur if FTI
were to bill it on an hourly basis. The normal hourly billing rates and the Monthly Fee Cap for any additional professionals with
the skills and experience needed for engagements of this kind, which are subject to periodic revision, are as follows:

 

United
States

  

	 	 	Standard Hourly

Rate (USD)	 	 	Discounted

Hourly Rate

(USD)	 	 	Monthly Fee Cap

(USD)	 
	Senior Managing Director	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 
	Managing Director	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 
	Senior Director	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 
	Director	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 
	Senior Consultant	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 
	Consultant	 	 	[**]	 	 	 	[**]	 	 	 	[**]	 

 

In
addition to the fees outlined above, FTI will bill for reasonable allocated and direct expenses which are likely to be incurred
on your behalf during this Engagement. Direct expenses include reasonable and customary out-of-pocket expenses which are billed
directly to the engagement such as internet access, telephone, overnight mail, messenger, travel, meals, accommodations and other
expenses specifically related to this engagement. Further, if FTI and/or any of its employees are required to testify or provide
evidence at or in connection with any judicial or administrative proceeding relating to this matter, FTI will be compensated by
you at its regular hourly rates and reimbursed for reasonable allocated and direct expenses (including counsel fees) with respect
thereto.

 

We
will send the Company periodic invoices (not less frequently than monthly) for services rendered and charges and disbursements
incurred on the basis discussed above, and in certain circumstances, an invoice may be for estimated fees, charges and disbursements
through a date certain. Each invoice constitutes a request for an interim payment against the fee to be determined at the conclusion
of our Services. Invoices are due upon receipt and the provision for discounting any of the above services is subject to prompt
payment.

 

The
Company agrees to promptly notify FTI if the Company or any of its subsidiaries or affiliates extends (or solicits the possible
interest in receiving) an offer of employment to a principal or employee of FTI involved in this Engagement and agrees that FTI
has earned and is entitled to a cash fee, upon hiring, equal to 150% of the aggregate first year’s annualized compensation,
including any guaranteed or target bonus and equity award, to be paid to FTI’s former principal or employee that the Company
or any of its subsidiaries or affiliates hires at any time up to one year subsequent to the date of the final invoice rendered
by FTI with respect to this Engagement.

  

    Page
                                         3
                                         of 5

     

    

 

Additional
Provisions Regarding Fees:

  

		a)	Client
                                         agrees that FTI is not an employee of the Client and the FTI employees and independent
                                         FTI contractors who perform the Services are not employees of the Client, and they shall
                                         not receive a W-2 from the Client for any fees earned under this engagement, and
                                         such fees are not subject to any form of withholding by the Client. The Client shall
                                         provide FTI a standard form 1099 on request for fees earned under this Engagement.

 

		b)	Copies
                                         of Invoices shall be sent by facsimile or email as follows:

 

To
the Client at:

Purple
Innovation, Inc.

123
East 200 North

Alpine,
Utah 84004

 

Attention: Accounts Payable

 

Availability
of Information

In connection with FTI’s activities on the Client’s behalf, the Client agrees (i) to furnish FTI with all information
and data concerning the business and operations of the Client which FTI reasonably requests, and (ii) to provide FTI with reasonable
access to the Client’s officers, directors, partners, employees, retained consultants, independent accountants, and legal
counsel. FTI shall not be responsible for the truth or accuracy of materials and information received by FTI under this agreement.

  

    Page
                                         4
                                         of 5

     

    

 

The
parties have caused this Amendment to be executed by their duly authorized representatives:

 

	PURPLE INNOVATION, INC.	 	FTI CONSULTING, INC.
	 	 	 
	BY: 	/s/ Joseph B. Megibow	 	BY: 	/s/ Stuart Gleichenhaus
	NAME: 	Joseph B. Megibow	 	NAME:  	Stuart Gleichenhaus
	TITLE:	Chief Executive Officer 	 	TITLE:	Senior Managing Director

 

Page 5 of 5Exhibit 10.10

 

Certain identified information in this exhibit has been excluded
because the information is (i) not material and (ii) would be competitively harmful if publicly disclosed. Such excluded information
is designated by [**].

 

Master Retailer Agreement

 

This Master Retailer Agreement (this “Agreement”)
is made effective as of September 18, 2018 (the “Effective Date”), by and between Purple Innovation, LLC, a
Delaware limited liability company (“Vendor”), and Mattress Firm, Inc., a Delaware corporation (“Mattress
Firm” and, together with its operating subsidiaries, “Retailer”).

 

Recitals

 

Whereas,
Retailer is engaged in the retail sale of mattresses, foundations, sheets, pillows, bedding, hot tubs, massage chairs and sleep-related
products through physical store locations, online, and at “pop-up” locations, including state fairs, trade shows, car
shows, home shows and other events or expositions (collectively, “Events”) and online (collectively, the “Business”);
and

 

Whereas,
Retailer desires to sell and offer for sale one or more of Vendor’s products (collectively, the “Products”)
in the operation of the Business.

 

Agreement

 

Now,
therefore, in consideration of the mutual covenants and promises of the parties set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

		1.	Authorized Retailer. Subject to the terms and conditions of this Agreement, Vendor hereby appoints Retailer, and Mattress
Firm hereby accepts such appointment for itself and on behalf of its operating subsidiaries, as a non-exclusive (except as set
forth herein) authorized retailer of the Products for the term of this Agreement. From time to time during the term of this Agreement,
Vendor may agree to establish certain business development programs available to authorized retailers on an annual basis, including
Retailer (each, a “Merchandising Program”). Vendor anticipates that these programs may be available in the future,
although the terms of such programs may change over time in form and scope, or be eliminated depending on internal and external
factors; provided that no changes may be made to an existing Merchandising Program unless Retailer consents to such changes in
writing. Participation in any such program is subject to Retailer’s compliance with the terms and conditions of this Agreement
and the terms of any such Merchandising Program.

 

     

     

    

 

		2.	Products.

 

		a.	During the term of this Agreement, Retailer may sell or offer for sale the Products at one or more physical store locations
operated by Retailer, one or more Events in which Retailer participates or one or more websites/webpages operated by or on behalf
of Retailer. Retailer has no obligation to sell or offer for sale any specified amount of the Products, except as expressly set
forth herein.

 

		b.	Retailer and Vendor shall mutually agree upon the Products available for sale through Retailer from time to time hereunder.
Retailer shall have the right to reject for any reason any Product line proposed to be offered; provided, that if any such
Product line includes an Exclusive Product (defined below), such exclusivity shall automatically terminate upon Retailer’s
rejection of such Product line.

 

		c.	Vendor reserves the right to: (i) change the design of or modify any Product; (ii) discontinue any Product; and (iii)
add new and additional products to Retailer’s product lines, which products shall constitute Products for purposes of this
Agreement. Notwithstanding the foregoing, without 60 days’ prior written notice to Retailer, Vendor shall not modify any
Product, including its contents, if such modification would render false or inaccurate any product description of such Product
provided to Retailer or any of Retailer’s consumers. Further, Vendor will not discontinue or change any Product unless Vendor
has provided Retailer with, in the case of Products offered only online, at least 30 days’ prior written notice, and in the
case of all other Products, at least 90 days’ prior written notice. Each notice required by this Section 2.d, will
include sufficient information regarding the change or discontinuance so as to give Retailer a reasonable opportunity to update
its website(s), promotional materials and/or advertising regarding the subject Products.

  

		3.	Exclusive Mattresses

 

		a.	Vendor’s Purple.3 and Purple.4 mattress models (the “Existing Exclusive Mattresses”) and two additional
mattress models per Section 3.b below (the “Developed Exclusive Mattresses” and, together with the Existing
Exclusive Mattresses, the “Exclusive Mattresses”) will be exclusive to Retailer as set forth in this Section
3. In the United States during the term of this Agreement, Vendor shall not sell, directly or indirectly, the Exclusive Mattresses
in physical brick and mortar retail stores or online retail stores, unless, in the case of Existing Exclusive Mattresses only (i)
Vendor is the seller in such store (as described below) or (ii) such stores, whether online or brick and mortar, are not Specialty
Mattress Stores, provided that Vendor shall not indirectly sell Existing Exclusive Mattresses through more than ten non-Specialty
Mattress Stores with National Store Coverage or 50 additional non-Specialty Mattress Stores with less than National Coverage; provided,
however, such non-Specialty Mattress Stores with less than National Coverage shall not be unreasonably concentrated in any market
where Retailer sells or offers for sale Vendor’s Products at Retailer’s physical store locations. “National Store
Coverage” means having a physical brick and mortar presence in at least 30 states. “Specialty Mattress Stores”
means those retailers whose primary offering is mattresses. For the avoidance of doubt, Vendor may sell (x) all Exclusive Mattresses,
other than the Developed Exclusive Mattresses, (A) through its brick and mortar stores, its online website store, Amazon.com, and
other internet sites and (B) to up to ten non-Specialty Mattress Stores with National Store Coverage, and, so long as not unreasonably
concentrated in any Retailer market, up to 50 additional non-Specialty Mattress Stores with less than National Store Coverage,
and (y) all other Products that are not Exclusive Mattresses through any physical brick and mortar retail stores and/or online
retail stores, regardless of whether such stores are Specialty Mattress Stores.

  

    2

     

    

 

		b.	Vendor shall develop two new mattress models in collaboration with Retailer that include mutually agreeable features and price
points and Vendor shall provide Retailer the opportunity to designate such models as Exclusive Mattresses (the “New Models”).
Upon development, Vendor shall demonstrate a prototype to Retailer, and Retailer shall have fifteen (15) business days to choose
to accept or reject designating the New Model as an Exclusive Product. If Retailer chooses to designate the New Model as an Exclusive
Product, Vendor will then continue to develop the product to production-ready. Should Retailer choose not to designate such New
Model as an Exclusive Product, that New Model will become non-exclusive and available to Vendor to sell through other physical
brick and mortar retail and/or online retail stores unless additional features are added to the New Model or the specifications
are materially changed in which case the updated New Model shall be resubmitted to Retailer for consideration as an Exclusive Product.
No New Model will be substantially comparable to the Purple.3 or Purple.4 mattress models unless expressly agreed by Retailer.

 

		c.	Regardless of whether the New Model is designated as an Exclusive Product, Vendor will retain ownership of all intellectual
property with respect to the New Model and Vendor branded marketing materials related to the New Model, including, without limitation,
the New Model’s design and all improvements or modifications thereto.

 

		d.	Retailer may elect to remove any model of mattress from the designation of Exclusive Product for a new model developed by mutual
agreement of the parties.

 

		e.	For the avoidance of doubt, at any time there will be no more than four of Vendor’s mattress models designated as Exclusive
Mattresses, however there will be no limit on the number of non-exclusive models that may be sold by Retailer.

 

		f.	Exclusivity, as used in this Agreement for the Exclusive Mattresses and any New Models that Vendor may develop that is designated
by Retailer as Developed Exclusive Mattresses, is contingent upon certain conditions that may be set forth in the Merchandising
Program from time to time.

 

		g.	In the event that the conditions required to maintain exclusivity are not met by Retailer and continue to be unsatisfied 30
days after written notice from Vendor, then the Exclusivity set forth in this Section 3 shall automatically terminate and Vendor
shall be free to offer or sell the Exclusive Mattresses to third parties without limitation.

 

    3

     

    

 

		4.	Compliance with Laws

 

		a.	Vendor will comply with all applicable laws, rules, orders, treaties, and regulations related to the production, manufacture,
sale, use, import and export of all Products, to the extent not inconsistent with United States law.

 

		b.	Vendor will assure that all Products are labeled in accordance with California Proposition 65, if applicable.

 

		c.	Vendor will comply with all applicable environmental laws and health and human safety laws, including without limitation, all
laws prohibiting child labor, human trafficking, and slavery.

 

		5.	Pricing. 

 

		a.	Retailer shall purchase the Products from Vendor at the prices set by Vendor and agreed to by Retailer from time to time (the
“Prices”). Such Prices may be increased following 90 days’ prior written notice to Retailer from Vendor.
These price increases may cover increases in raw material, delivery or labor costs, but shall not have a disproportionate effect
on the prices paid by Retailer for the Products as compared to any other competing retailer. Further, if Vendor offers a better
price to a third party for similar quantities of identical Products, the price of the Products will be adjusted to the price offered
to such third party. Such price adjustment will not apply retroactively, and Retailer shall only be entitled to such lower price
on future purchases of such Products.

 

		b.	Vendor will set the advertised retail price for all the Products, including any discounts, after considering in good faith
input from Retailer regarding mattress pricing. Vendor and Retailer may sell the Products through their respective agreed channels,
in parity with the advertised prices set by Vendor. Advertised prices for all Products shall be universally applicable to all retailers
of the Products.

 

		c.	If a Product does not meet sales performance expectations as reasonably determined by Retailer and Vendor, Vendor may authorize
commercially reasonable markdown strategies that will ensure that the parties share equally in the costs of liquidating the poor
performing inventory. If inventory or floor samples of such Product remain on hand more than 30 days after the implementation of
a negotiated markdown strategy, excess inventory of new, unopened, undamaged Products and related floor samples will be sold back
to Vendor at Retailer’s price and 50% of the shipping cost to return the Products to Vendor. If Purple fails to pay such
amounts to MFI within 45 days after re-delivery of the Products, MFI may offset payments owed by MFI to Purple by such amounts.

 

    4

     

    

 

		6.	Order Processing.

 

		a.	As needed from time to time, Retailer shall order Products from Vendor by either delivering written notice to Vendor or submitting
an order to Vendor by means of electronic data interchange (EDI) communication (such notice or submission is referred to
as a “Product Order”).

 

		b.	Each Product Order shall specify (i) the type and quantity of Products ordered, (ii) the location(s) to which such Products
shall be delivered and (iii) the date(s) of delivery of such Products.

 

		c.	Vendor must, within one business day or less of Retailer’s transmission of the Order, send a Product Order Acknowledgement
detailing what, if any, changes are needed via EDI or, if EDI is not available, by written acceptance within two business days.
If Vendor fails to expressly accept or reject a Product Order, it shall be deemed accepted.

 

		d.	Unless otherwise specified by Retailer, Vendor must abide by all instructions for order processing communications as defined
by the EDI Compliance Document attached hereto as Exhibit A.

 

		e.	Vendor will adequately package all Products and comply with all packaging requirements of Retailer and applicable law.

 

		f.	Retailer will provide Vendor with a weekly sell-through report of Products, aggregated by distribution center. Collaboratively,
the parties will develop a forecast for all distribution centers.

 

		7.	Product Delivery and Shipping Costs.

 

		a.	Vendor shall deliver Products as directed in the Product Order and shall be responsible for arranging shipment of such Products
unless otherwise requested by Retailer. Risk and title (except as stated elsewhere in this Agreement) of Products shall pass to
Retailer CPT (carriage paid to) at Retailer’s warehouse or, if applicable, to Retailer’s carrier FCA (free carrier)
to such carrier’s delivery location.

 

		b.	Notwithstanding Section 7.a above, if any Product will be delivered directly to Retailer’s customer (“drop
ship”), Vendor must arrange for shipment of such Product in accordance with the Mattress Firm Drop Ship Requirements
attached hereto as Exhibit B, subject to Section 15.d of this Agreement. Pursuant to the Mattress Firm Drop Ship
Requirements, Vendor shall ship on Retailer’s shipping accounts at Retailer’s cost. For purposes of drop ship deliveries,
risk and title (except as stated elsewhere in this Agreement) of Products shall pass to Retailer carrier FCA (free carrier) to
such carrier’s delivery location; provided that liability for concealed damage and/or damage occurring in-transit
as a result of insufficient or improper packaging will remain with Vendor. If Vendor ships on Retailer’s shipping accounts,
Vendor shall direct any customer seeking delivery information to Retailer’s Inside Sales Department at 866-805-0120 or, if
applicable, to Amazon directly.

 

    5

     

    

 

		c.	Time is of the essence with respect to Vendor’s shipment of the Products. Unless otherwise specified in the Product Order,
Vendor shall ship Products within a timeframe reasonably anticipated to meet the delivery dates set forth in the Product Order.
If the Product Order does not designate a delivery date, Vendor shall ship Products within three business days of the Product Order
placement unless otherwise agreed to by Retailer in writing. Beginning on October 1, 2018, if Vendor fails to ship at least 98%
of the Products within the required timeframe, then for each Product not timely shipped, the price paid by Retailer for each such
Product shall be multiplied by 1.5 for purposes of calculating the Volume Rebate (defined below) related to such Product, provided
that such late penalty shall not be applicable in situations involving force majeure pursuant to Section 32. For the avoidance
of doubt, if less than 100% of the items listed in a Product Order are delivered timely, those items that are not timely delivered
will be subject to the late penalty specified in the preceding sentence.

  

		d.	If Vendor fails, at any time, to maintain a timely shipment rate of 96% or higher with respect to drop ship Products ordered,
Retailer may, in its sole discretion, immediately suspend and refrain from offering the Products for sale for a period of 60 days.
Furthermore, if Vendor fails again, to timely ship Products, Retailer may, in its sole discretion, immediately suspend and refrain
from offering such Products for the remainder of the term of the Agreement. Retailer shall give Vendor a 30-day cure period following
written notice but need not give more than two cure opportunities per calendar year.

 

		e.	The shipping costs incurred as a result of Vendor’s shipments to Retailer will be borne by Vendor; and the shipping and
delivery costs incurred as a result of Retailer’s shipping to customers will be borne by Retailer, provided that the
parties will cooperate in good faith to maximize efficiency of freight costs.

 

		8.	Payment Terms. Vendor shall invoice Retailer within five business days after shipment of Products purchased by Retailer.
Retailer shall pay the amount set forth on such invoice, in US Dollars, unless disputed in good faith, within 45 days after receipt
of goods. The parties acknowledge that the payment terms are “net 45 days”. Either party may deduct any amount owed
by the other party to such party as a setoff against any amount due or credit owed to the other party under this Agreement.

 

		9.	Term; Termination.

 

		a.	This Agreement will commence on the Effective Date and continue until terminated as provided herein. The termination or expiration
of a Merchandising Program shall not have the effect of terminating this Agreement.

 

		b.	Either party may terminate this Agreement at any time upon 90 days’ written notice to the other party (the “Notice
Period”). Additionally, either party may terminate this Agreement immediately upon written notice in the event of a material
breach (including but not limited to any uncured payment default) by the other party, if such other party has failed to cure such
breach or default within 15 days of written notice thereof. Sections 7, 8, 9, 12, 14, 15, 17.c, 17.d, 19, 20, 21 and 23-36
shall survive the termination of this Agreement.

 

    6

     

    

 

		c.	All rebates, subsidies, and credits set forth herein in effect on the date of termination (collectively, the “Subsidies”)
shall continue to accrue on all Products sold by, or, in the case of return credits, returned to, Retailer during the Notice Period.

 

		d.	During the Notice Period, Vendor shall continue to timely ship and deliver all Products ordered in accordance with Section
6 and Section 7 of this Agreement and Retailer shall pay for all such Products in accordance with Section 8 of
this Agreement; provided, however, that notwithstanding anything to the contrary in this Agreement, Vendor shall not be
required to ship or deliver any Products to Retailer during any period in which Retailer is in material breach of this Agreement
(including but not limited to any payment default, unless such payment is disputed in good faith) after giving effect to all applicable
notice and cure periods; provided, further, that if Vendor elects to ship or deliver Products during such periods of material
default it shall hold title to such Products at all times, and title shall not pass to Retailer until Retailer has paid for such
Products in full unless such payment or portion thereof is disputed in good faith.

 

		e.	Following the effective date of termination (the “Termination Date”):

 

		i.	Vendor shall remit to Retailer the balance of any merchandise credit memorandum in immediately available funds within 30 days
of the effective date of termination; provided, however, that any such merchandise credit shall be offset by any unpaid
amounts owed by Retailer to Vendor under this Agreement except to the extent disputed in good faith;

 

		ii.	Vendor shall remit to Retailer all accrued but unpaid Subsidies; provided, however, that any such unpaid Subsidies shall
be offset by any unpaid amounts owed by Retailer to Vendor under this Agreement except to the extent disputed in good faith;

 

		iii.	Unless otherwise agreed in writing by the parties, during any post-termination run-out period, Retailer will be entitled to
continue to market and sell any Products then in inventory, as well as to honor any non-cancellable open customer orders. At Retailer’s
request within 15 days of the Termination Date, Vendor shall repurchase all new, unopened, undamaged Products (including outlet
products) then held by Retailer and related floor samples at Retailer’s cost for such Products, and each party shall pay
50% of the shipping for the return of such Products to Vendor;

 

		iv.	Retailer shall promptly cease and desist use of all Vendor intellectual property and shall cease and desist holding itself
out in any way as an authorized retailer of the Products, provided that, unless Vendor repurchases Retailer’s inventory
of the Products (including floor samples and outlet products) and picks up all returned Products (including Products returned after
the effective date of termination), Retailer shall have the right to market and sell all such Products in its possession, including
at physical store locations, Events and online, and use Vendor’s intellectual property in connection therewith; and

 

    7

     

    

 

		v.	Vendor shall be solely responsible for, and shall directly handle, all customer warranty claims (excluding comfort exchanges)
initiated after or in process on the effective date of termination.

 

		vi.	Unless Vendor elects to retrieve the Purple Gallery displays by delivering written notice of such election prior to the Termination
Date (or, in the event of termination due to a breach, on the Termination Date), then concurrently with the termination of this
Agreement, Retailer shall dismantle and dispose of all Purple Gallery displays. If Retailer timely receives Vendor’s election
notice, then Retailer shall use reasonable care in dismantling the Purple Gallery displays and will make such displays available
to Vendor at Retailer’s warehouse locations. If Vendor fails to retrieve such Purple Gallery displays within 30 days after
the Termination Date, such displays shall be deemed abandoned and Retailer shall dispose of such displays promptly.

 

		10.	Advertising. 

 

		a.	In order to assist Retailer in the funding of advertising and marketing expenses related to the promotion of the Products,
at the end of each calendar month, Vendor will accrue for co-operative advertising funds into internally held accounts a mutually
agreed aggregate amount (the “Co-Op Funds”) of Retailer’s Net Purchases during such calendar month. “Net
Purchases” shall mean an amount equal to (i) Retailer’s (including purchases by Retailer’s franchisees and
Retailer’s purchases for its brick and mortar stores, websites and Events) gross purchases of all Products paid in full,
less (ii) any discounted portion of payments, returns and penalties. Net Purchases do not include Retailer’s purchase of
floor models for purposes of this Section 10. At Retailer’s request, Vendor will provide supporting detail of the Retailer’s
monthly Net Purchases of Products on which co-operative advertising funds are accrued.

 

		b.	Vendor may use the Co-Op Funds to pay for customary point of purchase advertising displays or exterior signage at Retailer’s
stores, participation in Retailer managed advertising, contest prizes, marketing for Retailer events and expositions, or other
pop up marketing collaborations with Retailer, at Vendor’s reasonable discretion. All Co-Op Funds must be applied to marketing
efforts that directly benefit Retailer. Co-Op Funds may not be used to pay for the development, production, transport or installation
of Purple Galleries, marketing brochures, demonstration samples or the cost of any gift with purchase promotion. Vendor or Retailer
may use the Co-Op Funds to promote the sale of Vendor’s Products at Retailer’s stores. Retailer shall comply with Vendor’s
branding guidelines communicated by Vendor to Retailer. For any Retailer managed advertising funded in whole or in part by Co-Op
Funds, Retailer shall provide Vendor with samples of the advertising and, promptly following receipt thereof, Vendor shall reimburse
Retailer for the cost of such advertising out of available Co-Op Funds if such advertising is in compliance with Vendor’s
branding guidelines that have been communicated to Retailer.

 

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		c.	Vendor will be responsible for the costs of developing and producing point of purchase marketing materials, including “Purple
Gallery” fixtures, top of bed displays, marketing brochures and demonstration samples, irrespective of the availability of
Co-Op Funds. The Purple Galleries shall be owned by Vendor. Vendor shall fulfill, at its sole cost, all gift with purchase promotions.
All other marketing materials will be developed and produced independently by Vendor and Retailer, at their own cost, subject to
review by the other as desired when mentioning the other in the marketing materials.

 

		d.	Vendor shall pay for the replacement or repair of any damaged in-store Purple Gallery fixtures that have been in place longer
than 18 months.

 

		e.	Vendor will use best efforts to drive customers to Retailer’s retail stores through its marketing campaigns. In furtherance
of the foregoing, Vendor will mention Retailer prominently on its website to those customers identified as living within areas
in which Retailer is selling the Products in its physical brick and mortar retail stores, to drive foot traffic to those retail
stores. Marketing campaigns and advertising assets developed about the Exclusive Mattresses may emphasize their availability at
Retailer stores and their effectiveness will determine the prominence of these ads and campaigns over other traffic-driving campaigns.

 

		f.	The Co-Op Funds are owned solely by Vendor. Retailer shall have no right to use or otherwise acquire such funds, except for
purposes of promoting the sale of Vendor’s Products by Retailer in compliance with Vendor’s branding guidelines. Vendor
has no obligation to use any Co-Op Funds if (i) Retailer is not currently selling or offering for sale the Products at any of Retailer’s
physical store locations; (ii) Retailer is in default of its payment obligations hereunder (after giving effect to all applicable
notice and cure periods, and such payment is not disputed in good faith), (iii) Retailer is otherwise in material breach of this
Agreement (after giving effect to all applicable notice and cure periods) or (iv) a notice of termination has been given by either
party.

 

		11.	Product Displays.

 

		a.	Retailer may purchase Products to be used as floor samples at a 50% discount off of the Prices set for such Products by Vendor
(the “Discounted Prices”). All replacement Products ordered for use as floor samples shall also be purchased
at such Discounted Prices; provided that Retailer may not replace any such floor sample more than once during a calendar
year at the Discounted Price. Notwithstanding the foregoing, Vendor may from time to time determine that the floor samples on Retailer’s
retail floors should be changed more frequently, in which case the Discounted Prices will apply to such additional replacement
samples. Retailer shall specify in the Product Order for such Products that such Products will be used as floor samples.

 

		b.	Retailer may purchase Vendor’s powerbases through January 31, 2019, at which time the parties will negotiate in good
faith with respect to alternative product. In the event the parties are unable to come to an agreement with respect to such alternative
product within 60 days following January 31, 2019, Retailer shall have the option to use non-Vendor powerbases in the display of
Products.

 

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		c.	All Products will be displayed together in each retail store in which Retailer displays Products in a “Purple Gallery”
branded by Vendor and designed as mutually agreed by the parties. For the avoidance of doubt, non-mattress products will be displayed
with mattress products as a full comfort solution, inclusive of one or more of the following: Pillows, Cushions, Sheets, Mattress
Protectors, PowerBases and Platform Bases. Retailer shall direct its associates to not merchandise non-Vendor products in the Purple
Gallery without Vendor’s consent (which consent shall be in Vendor’s sole discretion). The Purple Gallery display area
will showcase, as for the Products, at least two bed floor models on a Vendor PowerBase or a Vendor Platform, two Vendor pillows
for each mattress, one set of mattress protectors and sheets, and one seat cushion; and as for other items, demonstration tools
such as cushion stools, mattress buns, buckling-column demonstrators and squishy Vendor giveaways. Retailer will have final approval
rights on design to ensure configuration will accommodate store design, size and layout.

 

		d.	Purple Gallery fixtures will be owned by Vendor and all related costs will be borne by Vendor. To the extent that Retailer
pays for any additional store fixtures or display items, such fixtures and items shall be owned by Retailer.

 

		e.	Sales tools or demonstration samples (ex: mattress buns) will be provided by Vendor and costs will be borne by Vendor.

 

		f.	The number of Vendor mattresses displayed in stores will be determined by the size of the stores and the bed slots that can
be accommodated, provided, however, that at least 70% of Retailer stores that sell Products must have four Purple bed displays.
As Vendor will be encouraging customers to visit and buy Products from Retailer, including non-mattress products, it is anticipated
that in-store inventory for “cash and carry” customers will be beneficial. Retailer will carry an appropriate amount,
as determined in Retailer’s reasonable discretion, of Vendor non-mattress product inventory in certain stores to meet customer
demands.

 

		12.	Volume Rebate Funds. Vendor will accrue and award volume rebate funds (the “Volume Rebate”) to Retailer
on an annual basis during the term of this Agreement as may be agreed from time to time in a Merchandising Program. The Volume
Rebates will be calculated and paid in the form of a merchandise credit memorandum within 45 days after the end of each calendar
year; provided however that any such merchandise credit shall be offset by any unpaid amounts owed by Retailer to Vendor
under this Agreement except to the extent disputed in good faith. For the avoidance of doubt, the term “Net Purchases”
shall include purchases of floor samples for purposes of this Section 12.

 

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		13.	Franchise Introductions. Retailer may make introductions between Vendor and Retailer’s franchisees (the “Franchisees”).
Any purchases made by such Franchisees shall be included in the Volume Rebate calculation for the benefit of Retailer; provided,
however, that Vendor will not be obligated to supply to such Franchisees, and any such relationship would be subject to creditworthiness
or other requirements in the sole discretion of Vendor and may include different payment terms. Vendor reserves the right not to
do business with any Franchisee for any reason.

 

		14.	Warranty.

 

		a.	Vendor warrants to Retailer that each Product: (i) is of good quality, (ii) meets all applicable Product specifications, and
(iii) is free from defects in workmanship or material per Vendor’s published standard product warranty. This warranty is
in addition to any standard product warranty offered by Vendor to its customers. Purple’s warranties, as published on its
website, will apply to the Products, and be the sole responsibility of Purple.

 

		b.	Subject to Section 14.a, warranty claims on mattress Products and returns on Products sold by Retailer will be handled through
Retailer’s customer service. Warranty claims on non-mattress Products sold by Retailer shall be handled by Vendor’s
customer service departments. Vendor will be available to Retailer to answer any questions and assist as reasonably necessary to
comply with warranty and return obligations. Retailer will be available to Vendor to answer any questions and assist as reasonably
necessary to allow Vendor to respond to inquiries from Retailer’s customers.

 

		15.	Returns. 

 

		a.	Vendor shall provide a credit to Retailer (the “Return Credit”) for mattresses returned by customers, which
shall be set forth in the Merchandising Program.

 

		b.	The Return Credit shall be the limit of Vendor’s responsibility for defective or returned Products except as set forth
in Section 15.c. Retailer shall be responsible for either issuing a refund to the customer or making a Product replacement
otherwise agreed upon by Retailer and such customer. Except as set forth in Section 15.c, Vendor is not required to pick
up or take back any defective or returned Products.

 

		c.	Retailer has the right to reject defective Products or misdeliveries (including floor samples) at the point of receipt, and
such returns will not count toward the Return Credit and will be taken back by Vendor, at Vendor’s expense. In the event
that Retailer reasonably determines Products are not built to specifications (including component quality and specifications) or
fail to conform to Vendor’s published warranty, Retailer shall notify Vendor in writing of such defects or failures. Following
such written notice, Vendor shall take back, at Vendor’s expense, all defective or non-conforming Products that remain in
Retailer’s inventory, and such returns will not count toward the Return Credit. Serial failures and recalls (including for
odor or yellowing) will be excluded from the Return Credit, irrespective of whether Retailer rejected such Products at delivery,
and accepted for return by Vendor, at Vendor’s expense. In the case of Products rejected at the point of receipt or returned
in connection with serial failures or recalls, Retailer shall receive a merchandise credit memorandum in an amount equal to 100%
of the Price paid by Retailer for such returned Products. Vendor shall have the right to verify the defect or failure before taking
back such Products and issuing a merchandise credit; provided that if Vendor fails to inspect the Products within 30 days of notification
from Retailer of a defect or non-conformity, Vendor will be deemed to have waived its verification right and shall take back the
applicable Product(s) irrespective of any subsequent inspection results.

 

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		d.	All drop ship Products shall identify the return address for shipping labels as “Mattress Firm, Inc. c/o [Vendor’s
address]”. Vendor shall process a refund for all returned drop ship Products following evidence from Retailer or customer
that such drop ship Product has been return shipped. Vendor shall bear the risk of loss of any returned drop ship Products in transit.

 

		16.	Brand Standards; Minimum Advertised Price. 

 

		a.	During the term of this Agreement, Retailer agrees to comply with any reasonable marketing or online advertisement requirements
as well as any brand standards or other requirements or criteria relating to the display, marketing or sale techniques regarding
the Products, in each case, established by Vendor and applicable to and followed by all authorized retailers of the Products, including
Vendor.

 

		b.	Retailer will keep all displayed floor samples well-maintained and clean.

 

		c.	Retailer will use the most current displays and point-of-sale materials provided or approved by Vendor, if required by applicable
marketing standards.

 

		d.	Retailer acknowledges that Vendor has a Minimum Advertised Price (“MAP”) Policy in place, and Vendor shall
provide Retailer with a current copy of such MAP Policy.

 

		17.	Product Details; Trademark License. 

 

		a.	For each Product, Vendor shall provide to Retailer a full description of the features and benefits of each such Product, a
complete list of such Product’s specifications and a picture for display of such Product. If none are available, Vendor shall
supply Retailer with funding to cover the costs of a photo shoot to capture necessary imagery for Retailer’s advertising
assets (i.e. website, print, in-store, digital, etc.). Retailer may incorporate such descriptions and pictures on the website(s)
in connection with each Product offered online and, as applicable, into any print advertisement.

 

		b.	Vendor may, from time to time, reasonably request changes or revisions to a website or any pages of a website that is controlled
by Retailer and which references, depicts or describes the Products or Retailer’s relationship to Vendor, which requested
changes or revisions shall be considered by Retailer in good faith and, unless unreasonable, incorporated promptly in the applicable
website.

 

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		c.	Vendor hereby grants to Retailer a worldwide, non-exclusive, royalty-free license to use such descriptions and pictures, and
Vendor’s trademarks, trade names, images and other Vendor-provided promotional materials in connection with the sale and
promotion of Products during the term of this Agreement and for purposes of the sale and promotion of any Products by Retailer
pursuant to Section 9.e.iii, Section 9.e.iv and otherwise pursuant to the terms of this Agreement.

 

		d.	Vendor will retain ownership of all intellectual property and Vendor branded marketing materials related to the Products, including,
without limitation, the Products’ designs and all improvements to or modifications thereof, in each case developed through
the parties’ collaboration. Vendor will have the right to make all decisions with respect to the registration of such a Product
design with the U.S. Patent and Trademark Office, the U.S. Copyright Office or similar authorities. Retailer agrees to assign,
and hereby does assign, to Vendor all of Retailer’s rights in and to any improvements or modifications to the Products, as
more fully set forth in the parties’ May 26, 2017 Joint Development and Confidentiality Agreement incorporated herein by
reference (the “Joint Development Agreement”).

 

		18.	Training; Reporting Obligations. 

 

		a.	Vendor shall provide Product training to Retailer’s sales associates from time to time, as reasonably requested by Retailer.

 

		b.	Vendor will provide Retailer, on a weekly basis, a report detailing the Product Orders received and shipped, as well as the
shipment date and any shipment delays, Product returns, current levels of Product inventory, and a list of any Products reasonably
expected to be out of stock for that week (for drop ship Products) or within the next 90 days (for non-drop ship Products). Any
such report provided through EDI communication shall satisfy this requirement.

 

		c.	Vendor will designate an employee to be Retailer’s primary point of contact for the business relationship contemplated
by this Agreement. Vendor will respond to all written (e-mail transmissions acceptable) inquiries of Retailer within one business
day of receipt.

 

		19.	Limitation of Liability. Except for claims arising out of willful misconduct, breach of Section 27 (Confidentiality),
or third-party indemnification obligations under Section 20 (Indemnification), in no event will either party be liable to the other
for any special, punitive, exemplary, reliance or consequential damages, however caused, whether for breach of contract, tort or
otherwise, and whether or not advised of the possibility of such damages.

 

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		20.	Indemnification.

 

		a.	Vendor shall indemnify, defend and hold harmless Retailer, its affiliates, successors and permitted assigns, and its and their
officers, directors, shareholders, members, partners and employees (each, a “Retailer Indemnified Party”) from
and against any and all claims, actions, proceedings, judgments and other liabilities and expenses (including reasonable attorneys’
fees and costs) of any nature arising out of or relating to:

 

		i.	the authorized use by Retailer of Vendor’s intellectual property;

 

		ii.	any allegation that any Product or marketing materials prepared by Vendor or made by Vendor’s employees infringes, misappropriates
or otherwise violates the intellectual property rights of a third party or applicable law (except to the extent the alleged infringing
material contains information provided by Retailer);

 

		iii.	the use of promotional materials and other information provided by Vendor, including in training sessions;

 

		iv.	any material breach of this Agreement by Vendor;

 

		v.	Product liability claims, including claims of personal injury or damage to personal property arising from the use of any Product;

 

		vi.	Product returns due to any manufacturing defect or damage, any customer claims under manufacturer warranties or any recall
issued by Vendor;

  

		vii.	any gross negligence or intentional misconduct by Vendor or its directors, officers, employees or contractors in connection
with the performance of Vendor’s obligations under this Agreement;

 

		viii.	claims under any applicable deceptive trade practices laws;

 

		ix.	the operation of Purple’s facilities; and/or

 

		x.	any allegation of any of the foregoing.

 

		b.	Retailer shall indemnify, defend and hold harmless Vendor, its affiliates, successors and permitted assigns, and its and their
officers, directors, shareholders, members, partners and employees (each, a “Vendor Indemnified Party”) from and against
any and all claims, actions, proceedings, judgments and other liabilities and expenses (including reasonable attorneys’ fees
and costs) of any nature arising out of or relating to:

 

		i.	Retailer’s unauthorized use of Vendor’s trademarks;

 

		ii.	any allegation that any marketing materials prepared by Retailer or made by Retailer’s employees infringes, misappropriates
or otherwise violates the intellectual property rights of a third party or applicable law (except to the extent the alleged infringing
material contains information provided by Vendor);

 

		iii.	the use of promotional materials and other information provided by Retailer (except to the extent the alleged infringing material
contains information provided by Vendor);

 

		iv.	Retailer’s customer comfort exchanges (except as set forth in Section 9.e.v);

 

		v.	any material breach of this Agreement by Retailer;

 

		vi.	the operation of Retailer’s facilities;

 

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		vii.	any gross negligence or intentional misconduct by Retailer or its directors, officers, employees or contractors in connection
with the performance of Retailer’s obligations under this Agreement; and/or

 

		viii.	any allegation of any of the foregoing.

 

		21.	Indemnification Procedures.

 

		a.	If any Retailer Indemnified Party or Vendor Indemnified Party (collectively and individually, the “Indemnified Party”),
as the case may be, receives notice of the assertion or commencement of any action, suit, claim or other legal proceeding made
or brought by any person who is not a party to this Agreement or an affiliate of a party to this Agreement (a “Third-Party
Claim”) against such Indemnified Party with respect to which either Vendor or Retailer is obligated to provide indemnification
under this Agreement (each the “Indemnifying Party”), the Indemnified Party shall give the Indemnifying Party
prompt written notice thereof. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party
of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeit rights or defenses by reason
of such failure. Such notice by the Indemnified Party shall describe the Third-Party Claim in reasonable detail and shall indicate
the estimated amount, if reasonably practicable, of the loss that has been or may be sustained by the Indemnified Party. The Indemnifying
Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any
Third-Party Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s own counsel (provided the Indemnifying
Party acknowledges in writing its indemnity obligations under this Section for such Third-Party Claim), and the Indemnified Party
shall cooperate in good faith in such defense. If the Indemnifying Party assumes the defense of any Third-Party Claim, it shall
have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to
any such Third-Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right, at its
own cost and expense, to participate in the defense of any Third-Party Claim with counsel selected by it subject to the Indemnifying
Party’s right to control the defense thereof. If the Indemnifying Party elects not to compromise or defend such Third-Party
Claim or fails promptly to notify the Indemnified Party in writing of its election to defend as provided in this Agreement, the
indemnified Party may, subject to the following, pay, compromise and defend such Third-Party Claim and seek indemnification for
any and all losses based upon, arising from or relating to such Third-Party Claim. Vendor and Retailer shall cooperate with each
other in all reasonable respects in connection with the defense of any Third-Party Claim, including making available records relating
to such Third-Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending
Party, management employees of the non-defending Party as may be reasonably necessary for the preparation of the defense of such
Third-Party Claim.

 

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		b.	Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third-Party
Claim without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed),
except as provided in this Section. If a firm offer is made to settle a Third-Party Claim without leading to liability or the creation
of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional
release of each Indemnified Party from all liabilities and obligations in connection with such Third-Party Claim and the Indemnifying
Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified
Party. If the Indemnified Party rejects such firm offer within 15 days after its receipt of such notice, the Indemnified Party
may continue to contest or defend such Third-Party Claim and in such event, the maximum liability of the Indemnifying Party as
to such Third-Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party rejects such firm offer
and also fails to assume defense of such Third-Party Claim in writing, the Indemnifying Party may settle the Third-Party Claim
upon the terms set forth in such firm offer to settle such Third-Party Claim. If the Indemnified Party fails to affirmatively accept
or reject such firm offer within the 15-day period referenced above, the Indemnified Party shall be deemed to have accepted such
firm offer. If the Indemnified Party has assumed the defense pursuant to this Section, it shall not agree to any settlement without
the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

 

		c.	Any claim by an Indemnified Party on account of a loss which does not result from a Third-Party Claim (a “Direct Claim”)
shall be asserted by the Indemnified Party giving the Indemnifying Party prompt written notice thereof. The failure to give such
prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to
the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party
shall describe the Direct Claim in reasonable detail and shall indicate the estimated amount, if reasonably practicable, of the
loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of
such notice to respond in writing to such Direct Claim. During such 30-day period, the Indemnified Party shall allow the Indemnifying
Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether
and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying
Party’s investigation by giving such information and assistance (including access to the applicable premises and personnel
and the right to examine and copy any accounts, documents or records) as the Indemnifying Party and its professional advisors may
reasonably request. If the Indemnifying Party does not so respond within such 30-day period, the Indemnifying Party shall be deemed
to have accepted such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be available to the
Indemnified Party on the terms and subject to the provisions of this Agreement.

 

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		22.	Insurance. Retailer will furnish annually to Vendor a certificate of insurance evidencing minimum coverage of general
liability insurance with combined single limits of one million US dollars (US$1,000,000) per occurrence. Vendor will furnish annually
to Retailer a certificate of insurance evidencing minimum coverage of general and product liability insurance with combined single
limits of one million US dollars (US$1,000,000) per occurrence, which may include a combination of primary and excess liability
insurance. Retailer will be named as an additional insured under Vendor’s liability policies on the certificate of insurance.
The certificate of insurance will list the insurance company, amount of coverage, policy numbers, expiration date, and will include
a clause that requires at least 30 days’ notice prior to cancellation of the policies, a waiver of subrogation, and a clause
that provides that the insurance described in the certificate is primary and non-contributory with respect to any insurance Retailer
may maintain. Vendor will maintain the required insurance and provide the certificates described above during the term of this
Agreement. These insurance requirements do not limit Vendor’s indemnification or other liabilities under this Agreement.

 

		23.	Executory Contract. The parties acknowledge that this Agreement is an executory contract inasmuch as they each owe continuing
duties hereunder to the other before it will be fully performed, including but not limited to the duty of making payments and providing
merchandise credits as set forth in this Agreement.

 

		24.	Expenses. Except as otherwise expressly agreed herein, each party will each bear their own costs and expenses (including
legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

 

		25.	Relationship of the Parties. Vendor and Retailer are independent contractors and neither shall represent itself as having
any power to bind the other or to assume or to create any obligation or responsibility, express or implied, on behalf of the other
party to this agreement. Nothing contained in this Agreement shall be deemed to establish a relationship of principal and agent
between Vendor and Retailer, nor any of their agents or employees for any purpose whatsoever. This Agreement shall not be construed
as constituting Vendor and Retailer as partners, or to create any other form of legal association or arrangement which would impose
liability upon one party for the act or failure to act of any other party.

 

		26.	Representations and Warranties. Each party hereby represents and warrants to the other party as follows:

 

		a.	Such party is duly organized, validly exists and is in good standing under the laws of its jurisdiction of organization.

 

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		b.	Such party is authorized to execute and perform this Agreement.

 

		c.	Such party has had the opportunity to retain independent counsel regarding its obligations and commitments hereunder.

 

		d.	The performance of this Agreement by such party will not conflict with or violate any material agreement, arrangement or commitment,
whether written or oral, with any third party.

 

		27.	Confidentiality.

 

		a.	Each party expressly agrees to (i) retain in confidence all information transmitted to such party that the disclosing party
has identified as being proprietary and/or confidential or which, by the nature of the circumstances surrounding the disclosure
or the content of the disclosed information, ought in good faith to be treated as proprietary and/or confidential, and (ii) use
such information and/or know-how solely for the purposes set forth in this Agreement. The receiving party’s obligation hereunder
shall survive termination of this Agreement. The parties acknowledge that they may be exposed to confidential information of the
other party that is unrelated to the matters set forth in this Agreement, and that such information will be subject to the same
protections from disclosure and misuse hereunder. Notwithstanding the foregoing, if a receiving party is required to disclose any
confidential information of the other party by any court, tribunal or other governmental or regulatory authority, the receiving
party may disclose such confidential information, provided that the receiving party, to the extent legally permissible,
provides reasonable prior notice to the disclosing party of any such requirements and provides reasonable assistance to the disclosing
party in obtaining a protective order or similar protection for such information. This Section 27 is subordinate to any
conflicting provision set forth in the Joint Development Agreement.

 

		b.	Confidential information subject to the obligations in the prior paragraph shall not include any information that: (i) is or
becomes publicly available without the receiving party’s breach of any obligations owed the disclosing party; (ii) was known
to the receiving party prior to the disclosing party’s disclosure of such information to the receiving party; (iii) became
known to the receiving party from a source other than the disclosing party without breach of an obligation of confidentiality;
or (iv) is independently developed by the receiving party, as demonstrated by the receiving parties’ records.

 

		c.	Neither party will make a public announcement, publicly disclose or discuss with third parties the terms and conditions of
this Agreement. Nothing herein prevents either party from making public announcements or disclosing in general that they have a
business relationship under which Products are jointly sold by Vendor and Retailer. For the avoidance of doubt, the parties may
disclose the terms and conditions of this Agreement for business purposes to their current and future employees, affiliates, advisors,
attorneys, accountants, lenders, investors, vendors and suppliers who are not competitors of the other party.

 

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		28.	Notices. All notices and other communications under this Agreement must be delivered in writing and shall be deemed
to have been given when (a) delivered by hand or (b) one (1) business day after deposit thereof for overnight delivery with a nationally
recognized overnight delivery service (receipt requested) to the appropriate address as set forth below (or to such other address
as a party may designate by notice to the other parties):

 

	Retailer:	Mattress Firm, Inc.
	 	10201 South Main Street
	 	Houston, Texas 77025
	 	Attention: Merchandising Dept.
	 	 
	 	For legal notices:
	 	 
	 	Mattress Firm, Inc.
	 	10201 South Main Street
	 	Houston, Texas 77025
	 	Attention: Legal Dept.
	 	 
	Vendor:	Purple Innovation, LLC
	 	123 East 200 North
	 	Alpine, Utah 84004
	 	Attention: Wholesale Sales Dept.
	 	 
	 	For legal notices:
	 	 
	 	Purple Innovation, LLC
	 	123 East 200 North
	 	Alpine, Utah 84004
	 	Attention: Legal Dept.

 

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		29.	Governing Law; Waiver of Jury Trial. This Agreement shall be governed by the laws of the state of Delaware without giving
effect to the conflicts of laws principles thereof. If Retailer commences suit against Vendor for any reason related to this Agreement,
venue shall be exclusively in Houston, Texas, and Vendor consents to personal jurisdiction over it in Texas for that purpose. If
Vendor commences suit against Retailer for any reason related to this Agreement, venue shall be exclusively in Salt Lake City,
Utah, and Retailer consents to personal jurisdiction over it in Utah for that purpose. For purposes of this Section, declaratory
judgment actions shall be deemed to be suits commenced by the party against whom the action is filed. For purposes of establishing
jurisdiction in Texas and Utah, as applicable, under this Agreement, each party hereby waives, to the fullest extent permitted
by applicable law, any claim that: (a) it is not personally subject to the jurisdiction of such court; (b) it is immune from any
legal process with respect to it or its property; and (c) any such suit, action or proceeding is brought in an inconvenient forum.
The parties expressly disclaim the application of the United Nations Convention on Contracts for the International Sale of Goods.
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND
DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.

  

		30.	Third-Party Beneficiaries. The parties agree that there are no third-party beneficiaries to this Agreement other than
the Vendor Indemnified Parties and Retailer Indemnified Parties.

 

		31.	Amendment; Assignment. Except as expressly set forth herein, this Agreement may be amended or modified only by written
agreement signed by both parties. Neither party may assign this Agreement without the prior written consent of the other party,
except that either party may assign this Agreement to an affiliate without the other party’s prior written consent. The merger
or direct change of control of either party, including pursuant to bankruptcy, shall constitute an assignment of this Agreement
in violation of this Section 31.

 

		32.	Force Majeure. Neither party shall be held responsible for any failure of performance in the event such failure was
due, in whole or in part, to federal, state or municipal action, statute, ordinance or regulation, strike or other labor trouble,
fire or other damage to or destruction of, in whole or in part, the Products or the manufacturing facility for the Products, the
lack of or inability to obtain raw materials, labor, fuel, electrical power, water or supplies, or any other cause, act of God,
contingency or circumstance not subject to the reasonable control of that party, which causes delays or hinders the manufacture
or delivery of the Products, sale of the Products or reconciliation of amounts owed on the sale of the Products.

 

		33.	Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the U.S. federal ES1GN Act of 2000, e.g., www.docusign.com) or other
transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective
for all purposes.

 

    20

     

    

 

		34.	Waiver. No waiver of any term or condition of this Agreement shall be effective or binding unless such waiver is in
writing and is signed by the waiving party, nor shall this Agreement be changed, modified, discharged or terminated other than
in accordance with its terms, in whole or in part, except by a writing signed by both parties. Waiver by any party of any term,
provision or condition of this Agreement shall not be construed to be a waiver of any other term, provision or condition nor shall
such waiver be deemed a subsequent waiver of the same term, provision or condition.

 

		35.	Severability. The provisions of this Agreement are fully severable and the invalidity or unenforceability of any provision
of this Agreement shall in no way affect the validity or enforceability of any other provision hereof.

 

		36.	Entire Agreement. All Product Orders are subject to, and governed by, the terms and conditions of this Agreement. This
Agreement, the Joint Development Agreement, the applicable Merchandising Program then in effect, if any, and all Product Orders
submitted hereunder, constitutes the entire agreement between the parties with regards to the subject matter hereof and sets forth
all of the representations, warranties, promises, covenants, agreements, conditions, and undertakings between the parties hereto
with regards to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements
or conditions, express or implied, oral or written, with regards to the subject matter hereof. Time is of the essence with respect
the performance obligations set forth in this Agreement. In the event of a conflict between this Agreement and any Merchandising
Program, this Agreement shall control.

 

[Remainder of Page Intentionally Left Blank.]

 

    21

     

    

 

IN WITNESS WHEREOF, the parties have duly
executed this Agreement to be effective as of the Effective Date.

 

	Purple Innovation, LLC	 	Mattress Firm, Inc.
	 	 	 
	By: 	/s/ Terry V. Pearce	 	By: 	/s/ Hendre Ackermann
	Name: 	 Terry V. Pearce	 	Name: 	 Hendre Ackermann
	Title: 	CEO	 	Title: 	COO/CFO
	Date: 	September 17, 2018	 	Date:	 September 18, 2018

 

 

Signature Page to Master Retailer Agreement

     

     

    

 

Exhibit
A

EDI
Compliance Document

 

See
attached

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit A to Master Retailer
Agreement

      

     

    

 

 

 

Mattress
Firm has identified the following documents as required to drive efficiencies and value into the supply chain and supporting the
needs of the end consumer.

 

EDI
TRANSACTIONS

 

Supplier
EDI Transactions – Ship to DC and Drop Ship

 

		●	Purchase
                                         Order Acknowledgment (EDI 855) - Mattress Firm is requiring Trading Partners to provide
                                         commitment and status of the order with the Purchase Order Acknowledgement (POA). Purchase
                                         Order Acknowledgements are expected to be returned via EDI for every Purchase Order within
                                         two business day of PO receipt. If changes are necessary, your assigned Mattress
                                         Firm buyer will work with you outside of the electronic trading process.
	 	 	 
		●	Advance
                                         Ship Notice (EDI 856) - As confirmation of shipment, trading partners will be required
                                         to provide the ASN/Ship Notice details for all electronically created purchase orders
                                         at the time the shipment is leaving the warehouse and should reflect the purchase
                                         order and items that are in the shipment. Each ASN will represent a single shipment (Ship-To
                                         location) and expected to include all PO’s physically in a single shipment. The
                                         856 is expected to be sent after the 855 and before shipment.
	 	 	 
	 	●	Branded
                                         Packing Slip - In order to support continuity of customer shipments from the Distribution
                                         Center and directly from trading partners, trading partners will be required to support
                                         a Mattress Firm Branded Packing Slip. This Packing Slip is to be included in every consumer
                                         carton. Until further notice, a generic packing slip with no product cost details
                                         is to be provided.
	 	 	 
		●	Invoice
                                         (EDI 810) - Mattress Firm is requiring trading partners to provide electronic Invoices
                                         for all electronically created Orders that have shipped to automate the 3-way match between
                                         the PO, ASN, and invoice. An invoice represents a single PO and shipment, where they
                                         are billing a single Ship-to location. The 810 is expected to be sent with or after
                                         the 856.

 

Mattress
Firm Dropship Routing Instructions

 

These
instructions include details for all small parcel and LTL shipments drop shipped to Mattress Firm’s customers. These requirements
include the use of Mattress Firm’s shipping accounts. Refer to Dropship Routing instruction package.

 

GETTING
STARTED

 

Mattress
Firm has engaged SPS Commerce, a SaaS provider of supply chain solutions, to provide a complete suite of EDI services for us.
All EDI data to or from Mattress Firm is processed through SPS Commerce. A uniform and consistent Interface has allowed us to
rapidly engage our trading partners in communications via EDI.

 

To
learn more on how to partner with Mattress Firm, please visit: 

 

https://community.spscommerce.com/mattress-firm-new-vendor-onboarding/

 

 

Exhibit A to Master Retailer
Agreement

     

     

    

 

Exhibit
B

Mattress
Firm Drop Ship Requirements

 

See
attached

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit B to Master Retailer
Agreement

      

     

    

 

 

Drop
Ship Requirements

 

We
are pleased to announce that we have chosen FedEx© as our carrier of choice for small parcel shipments. Effective immediately,
please route our small parcel shipments through FedEx using the Bill Third Party option with the following account number: [**].

 

Small
parcel shipments are those with an aggregate weight of less than 150lbs and meet standard parcel specs (i.e., less than 130”,
length + girth).

 

NOTE:
FedEx account numbers are confidential and should only be communicated for the limited purpose of preparing FedEx shipments under
these Routing Instructions. Do not post this information online or make it generally available beyond what is required for your
company to follow the instructions. This account number is to be used for delivery of MFRM drop-ship Purchase Orders.

 

Requirements

 

When
creating labels in FedEx Ship Manager, enter MFRM’s Purchase Order number in the ‘Original Customer Reference’ field. MFRM’s Purchase
Order is 10 characters beginning with the letter P and followed by 9 digits.

 

Freight
charges for shipments with missing, incomplete and/or incorrectly formatted purchase order numbers will be deducted from future
product invoices.

 

When
confirming the order has shipped, you must issue an EDI856 ASN with the FedEx SCAC code and FedEx tracking number for each package
in the shipment.

 

Improperly
formatted ASNs, or ASNs with incomplete/inaccurate information will result in delayed payment of your invoice. Continued violation
of this requirement may result in penalties up to or including suspended sales of your product.

 

Upon
receipt of the EDI850 Purchase Order, contact MFRM’s Logistics Department at Trans-CityMCS@MFRM.com
to request shipping instructions. Provide the total number of pieces, the total weight, shipment dimensions and available
pick up date.

 

MFRM’s
Logistics Department will reply with 2 business days and provide the name of the servicing Carrier & the Shipping Bill of
Lading. Also included in the response will be our Transportation Partner’s SCAC code and tracking number.

 

When
confirming the order has shipped, you must issue an EDI856 ASN which contains the Transportation Partner’s SCAC code and tracking
number.

 

 

Exhibit B to Master Retailer
Agreement

     

     

    

 

FedEx
Ground

 

FedEx
Ground® shipments that weigh up to 150 lbs. per carton must be non-palletized, individually packaged and individually
labeled. FedEx Ground provides pickup service upon request, for an additional charge. For regular-scheduled-pickup customers,
a weekly pickup fee is assessed to the account number associated with the regular scheduled pickup. For customers who do not have
a regular scheduled pickup, there is a per-package on-call pickup charge. Pickup charges do not apply if you drop off your package
at a FedEx shipping location, All FedEx shipments must be prepared using an automated shipping solution. If you do not have a
regularly scheduled FedEx Ground pickup, the FedEx Ground pickup needs to be scheduled one day in advance.

 

FedEx
Express

 

Use
FedEx Express® for time-sensitive shipments using the Bill Recipient billing option and via the specific Express
Shipping method requested or approved by your Buyer, in writing, or as stated on your purchase order. A charge applies when you
request a pickup, including requests made using FedEx automated shipping solutions or by calling 1.800.GoFedEx 1.800.463.3339
(say “schedule a pickup”). The charge is itemized separately on your invoice. If you pay by cash (which is not accepted
at all pickup locations), check, money order or credit card, the charge will be collected when you tender the package. This charge
does not apply if you drop off your package at a FedEx shipping location or if you have regular scheduled pickup.

 

For
more information about FedEx services, including account setup, shipping supplies and electronic shipping solutions, please contact
FedEx New Account Services at 1.800.GoFedEx 1.800.463.3339 and say “new account setup.”

 

Please
follow the routing instructions below for fulfillment of MRFM drop-ship Purchase Orders requiring LTL service.

 

LTL
shipments are those with an aggregate weight up to 150 lbs. Parcel shipments exceeding standard specs (i.e., greater than 130”,
length + girth) should also be routed as LTL.

 

 

Exhibit
B to Master Retailer Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}]]