Document:

nemus_101.htm

EXHIBIT 10.1
  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
   
  
  	  
	 

  
 Albany Molecular Research, Inc. ׀ 26 Corporate Circle ׀ P.O. Box 15098 ׀ Albany, NY 12212-5098 USA 
 t. (518) 512-2000 ׀ f. (518) 512-2020 ׀ www.amriglobal.com
  
 June 13, 2018
  
 Dr. [****]
 [****]
 NEMUS Bioscience Inc.
 130 North Marina Drive, 
 Long Beach, CA 90803
  
 Dear Dr. [****],
  
 Pursuant to your recent request, Albany Molecular Research, Inc. (“AMRI”) is pleased to provide NEMUS Bioscience Inc. (“NEMUS”) with this revised proposal for process development, non-GMP manufacture of [****], a non-binding estimate for the cGMP manufacture of [****], and a stability study.
  
 This proposal is separated into four parts that are detailed in this document. Below is a summary of our proposal as well as the fees associated with this work.
  
 	 Part
	 Description
	 Estimated 
 Labor Fee
	 Reimbursable
 Expenses
	 Anticipated
 Timeframe***

	 I.
	 Process Development Including Analytical Support
	 [****]
	 [****]
	 [****]

	 II.
	 [****]
	 [****]
	 [****]
	 [****]

	 III.
	 [****]
	 [****]
	 [****]
	 [****]

	 IV.
	 [****]
	 [****]
	 [****]
	 [****]

	  
	 Total:
	 [****]
	

  
 ***Please note that the actual timeframe for completion of all Parts of this proposal is dependent upon resource and equipment availability. Upon signature of this proposal, AMRI shall provide a Gantt chart detailing the activities as appropriate. Company policy dictates that we can commit resources and equipment only after receipt of written approval.
   
 Please appreciate that the aforementioned fees are based on estimates derived from the technical information provided by NEMUS. Changes to the scope of work due to new objectives, incomplete information, or Quality Plan requirements may lie beyond the scope of this proposal. AMRI will make appropriate efforts to accommodate any requested changes in the work plan or scheduling. However, requests for services beyond the scope of this proposal may require a change to AMRI’s estimate of [****]to perform the services contemplated herein. In the event that the compound is determined to require the use of AMRI’s [****], a revision to this proposal will be necessary.
   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 2 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Ownership of all information developed as a direct result of this project shall accrue to NEMUS as the work is being performed and provided that NEMUS pays all invoices submitted by AMRI in performance of the work contemplated hereunder. Upon 30 day written notice, NEMUS may terminate [****] prior to any test interval and would only be responsible for all costs incurred up to the point of termination.
  
 Please appreciate that upon receipt of authorization to proceed with the production ([****]), AMRI schedules its equipment and personnel and orders materials in anticipation of commencing this work. AMRI will inform NEMUS of the scheduled production date as soon as is practical, following receipt of NEMUS’ acceptance of this proposal. NEMUS may at any time cancel or delay a project prior to the scheduled start date by providing AMRI with written notice. Upon receipt of such cancellation notice, AMRI shall cease all work at a logical and mutually agreed to stopping point and limit further expenses associated with such production, including cancelling all outstanding subcontracts associated with the execution or other preparations for the project. Subject to the cancellation, NEMUS shall reimburse AMRI for costs as follows:
  
 a. If written notice of cancellation is received by AMRI more than [****] prior to the scheduled production date, NEMUS shall reimburse AMRI for all nonrefundable costs actually incurred by AMRI. This includes any analytical method development activities.
 b. If written notice of cancellation is received by AMRI between [****] prior to the scheduled production date, NEMUS shall pay to AMRI [****], and in-addition (if applicable) reimburse AMRI for all nonrefundable costs actually incurred by AMRI.
 c. If written notice of cancellation is received by AMRI between [****] prior to the scheduled production date, NEMUS shall pay to AMRI [****], and in-addition (if applicable) reimburse AMRI for all nonrefundable costs actually incurred by AMRI.
 d. If written notice of cancellation is received by AMRI after commencement of production, NEMUS shall pay to AMRI [****] and in-addition (if applicable) reimburse AMRI for all nonrefundable costs actually incurred by AMRI.
  
 With respect to Part III - in the event of a delay imposed by NEMUS [****] of the scheduled production date or after commencement of production, [****]
  
 These delay and cancellation fees are in addition to any charges which may apply for all costs incurred up to the point of termination or delay.
  
 Subject to exceptions for AMRI Proprietary Technology (as defined below), any and all results, inventions, compounds, materials, reports, data, Certificates of Analysis, or other deliverables generated by AMRI, in whole or in part, in the direct performance of this project shall accrue to NEMUS as the work is being performed, and provided that NEMUS pays all invoices submitted by AMRI in performance of the work contemplated hereunder that are consistent with this proposal. “AMRI Proprietary Technology” means all intellectual property, know-how, ideas, inventions, discoveries, concepts, scientific methods, and other technology and processes, including without limitation AMRI’s [****] manufacturing process, owned by AMRI and existing as of the date of this Agreement and used in the course of performing this project. AMRI  Proprietary Technology shall remain the exclusive property of AMRI.
   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 3 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 We appreciate the opportunity to do business with NEMUS and request that you consider this proposal as expeditiously as possible. We will schedule this project promptly upon receipt of your written authorization. Please note that we are constantly receiving requests for new projects. Company policy dictates that we can commit resources and guarantee a start date only after receipt of an order. All work specified herein be performed in accordance with our Terms and Conditions (the “Agreement”). Any terms or conditions contained in a NEMUS purchase order or other documents which are additional to or inconsistent with this Agreement shall be void, unless specifically agreed to by AMRI in writing and signed by AMRI’s duly authorized representative.
  
 Payment Schedule
  
 	 Description
	 Payment

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

  
 AMRI will invoice NEMUS for Part III, with title to and risk of loss [****]. AMRI shall notify NEMUS at such time that the material is available for physical delivery. In the event that NEMUS requests any given shipment be delayed beyond the intended shipment date, NEMUS shall provide a written request to AMRI to store the material. If NEMUS does not provide a written request to store the material, AMRI shall be entitled to ship the material to NEMUS, at NEMUS’ risk and expense. Upon written request, AMRI will store the material for [****]. NEMUS is responsible for insurance, if desired, during the storage period. NEMUS shall pay all invoices [****].
  
 Any resulting material [****].
  
 NEMUS shall be responsible for [****]. For clarity, AMRI will invoice NEMUS [****].
  
 This proposal is valid for [****] from the date of issue. In the event that NEMUS indicates its intent to accept any portion of this proposal following the [****] expiration date or in the event that NEMUS accepts the work contemplated herein to commence more than [****] from the date of this proposal, AMRI reserves the option to submit a revised proposal to reflect any change in costs since the date of the original proposal.
   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 4 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Please feel free to contact me if there is any further information that AMRI can provide about any aspect of this proposal. I look forward to hearing from you.
  
  	 Sincerely, 
		Agreed and Understood:	
				
	 [****]
		 [****]
	
	 [****]
		 NEMUS Bioscience, Inc.
	
	 [****]
			
				
	 E-mail:            [****] 
		 July 31, 2018
	
			 Date
	

  
 AMRI Proposal #O-34740v3
   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 5 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Proposal for the cGMP Manufacture of [****]
 For NEMUS Bioscience, Inc.
 AMRI Proposal #O-34740v3
  
 This document specifies the services to be provided by AMRI and the costs related to process development, non-GMP manufacture of [****], a non-binding estimate for the cGMP manufacture of [****], and a stability study.
  
 AMRI refers to current Good Manufacturing Practices (“cGMP”) as specified in the International Conference on Harmonization (“ICH”) guide Q7 “ICH Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients” (“API”), as applied to the manufacture, testing, and quality control of APIs. For the purposes of this proposal, AMRI has assumed that the final API material is intended for Phase I Clinical Trials.
  
 For the purposes of this proposal, the cGMP starting material for this work has been defined as [****], as outlined in Attachment I.
  
 I. Process Development/Optimization/Familiarization
  
 Prior to initiating the cGMP production, AMRI shall develop the current process provided by NEMUS (see Attachment I) to ensure reproducibility, quality, and safety on scale. As part of this work, AMRI shall conduct the following: 
  
 ● [****].
  
 We recommend utilizing our Full-Time Equivalent (“FTE”) program since this approach allows the client the flexibility of changing scope and direction during the course of the project. AMRI estimates that [****], however, AMRI shall allocate [****].
  
 Under the FTE program, [****] dedicated to your project and will provide NEMUS with regular updates on its progress. The FTE rate for this project is [****].
  
 For clarity, the total labor fee, reimbursable expenses for all chemicals and materials, and anticipated timeframe is outlined in the table below. 
  
 	 Description
	 Estimated
 Labor Fee
	 Reimbursable
 Expenses
	 Anticipated
 Timeframe**

	 Process Development Including Analytical Support
	 [****]
	 [****]
	 [****]

  
 **Following receipt of all materials and availability of resources.
   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 6 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Communication during this work will be through regular written updates and teleconferences to keep NEMUS updated on the progress of the development effort. Deliverables shall include these updates, and a final report describing the resulting process. In addition, any intermediates/material that is generated during this work may be provided to NEMUS upon request.
  
 Please appreciate that depending on the ongoing observations made and results obtained in this program, it is possible that the program may be completed in more or less time than is estimated herein. Should this work require more time than is estimated herein, NEMUS will be notified and will have the option of extending the project. NEMUS will be invoiced for the monthly FTE allocation and materials required to complete the work contemplated hereunder.
  
 II. Non-GMP Manufacture of Approximately [****]
  
 Predicated upon the successful completion of Part I of this proposal, AMRI shall use commercially reasonable efforts to conduct the non-GMP manufacture of approximately [****] for the fixed fee and anticipated timeframe outlined in the table below. Deliverables for this work shall include regular updates and teleconferences detailing the progress of the research as well as a Certificate of Analysis.
  
 	 Description
	 Fixed Fee*
	 Anticipated Timeframe**

	 [****]
	 [****]
	 [****]

  
 *[****].
 **Following receipt of all materials and availability of resources.
  
 Included in this effort, AMRI shall develop/validate the analytical methods which are required to support the cGMP manufacture of [****]. This work shall include the following:
  
 Test methods for starting materials, in-process control and key intermediates will be developed and shown suitable for analysis. Feasibility of available test methods will be evaluated (under assumption that the methods have been previously developed). Test methods for API release/stability will be developed and validated to satisfy criteria for early phase clinical API. Compendial methods will be verified. Additional methods will be developed if required.
  
 Retention time markers of process intermediates will be characterized as non-quantitative standards. Reference standard of drug substance will be characterized.
  
 Analytical Development
  
 · [****]
   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 7 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Analytical Validation
  
 · [****].
  
 Retention Time Markers Qualification (n=5)
  
 · [****]
  
 Reference Standard ([****]) Qualification (the demonstration batch)
  
 · [****]
  
 Deliverables for this analytical work will include written procedures for test methods, validation reports when applicable and a COA for the reference standard.
  
 Please appreciate that should any additional analytical work other than what is estimated herein be required, NEMUS would be contacted and updated on this information. At that point, NEMUS, at its sole discretion, will have the option to extend this portion of the program.
  
 III. Non-Binding Estimate for the cGMP Manufacture of [****]
  
 Please appreciate that until such time that a final process is developed, AMRI is providing NEMUS with a non-binding estimate for the cGMP manufacture of approximately [****].
  
 Upon completion of the process development activities and improvement of the process outlined in Parts I and II, AMRI shall provide a binding estimate for this work which may be higher or lower than our non-binding estimate based on the yields obtained during the previous development work. The non-binding estimated fee and anticipated timeframe are outlined in the table below.
  
 	 Description
  
	 Fixed Fee*
	 Anticipated Timeframe**

	 [****]
	 [****]
	 [****]

  
 *[****].
 **[****].
  
 Note: [****].
  
 The cGMP work shall be documented in batch records, completed copies of which shall be provided to NEMUS upon conclusion of the work. The original batch records shall be maintained at AMRI. A Certificate of Analysis shall be prepared for [****], summarizing the results of the mutually agreed upon analyses.
   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 8 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Analytical and quality assurance support to the cGMP campaign shall include, but not necessarily be limited to, the release of raw materials, starting materials, and intermediates (if appropriate); cGMP support; cleaning validation and/or verification; final API release; and preparation of an appropriate Certificate of Analysis.
  
 IV. Stability Program
  
 AMRI will conduct a stability assessment on [****]. The material shall be stored in a single packaging configuration reflective of the bulk material packaging and shall be stored at long-term, intermediate, and accelerated conditions to be defined within a study-specific protocol.
  
 A study initiation fee as detailed below shall be charged upon commencement of the study to cover protocol development, sample aliquoting, labeling and set-up, chromatographic columns, project-specific chemicals and materials.
  
 Samples will be stored and tested the following intervals:
  
 [****]
  
 Testing at each interval shall include the following:
  
 ● [****].
  
 NEMUS shall be required to authorize the use of requisite quantities of material for this study. Testing will be conducted at the prescribed intervals for the fees summarized in the table below:
  
 	 Test Interval
 (Months)
	 Fixed Fee
 (Single Lot)

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 [****]
	 [****]

	 Total Fee:
	 [****]

   	 
	 
	 
 
	 

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 9 of 10
	 AMRI Proposal #O-34740v3

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 An additional fee of [****] may be charged in the event that additional testing is requested by NEMUS, or [****].
  
 Please note that, upon completion of the testing for each condition, AMRI shall return any remaining material to NEMUS. Please note that, should NEMUS request that the material be stored at AMRI past the agreed upon study duration, [****].
  
 The standard report, included in the above fixed fees, consists of a [****]. If a final, written report summarizing the study is requested, [****]
  
 AMRI Proposal #O-34740v3 
  
  	 
	 
	 
 
	

  
  	 Dr. [****]
 NEMUS Bioscience, Inc.
 June 13, 2018
 Page 10 of 10
	 AMRI Proposal #O-34740v3

 
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Attachment I
  
 [****]
   	 
	 
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 Exhibit A
  
 TERMS & CONDITIONS
 Albany Molecular Research, Inc.
  
 1. AGREEMENT AND ACCEPTANCE: The entire agreement (the “Agreement”) between Albany Molecular Research, Inc. (“AMRI”), and the Customer consists of: (i) AMRI’s proposal for the products, materials, services, goods (collectively “Proposal”), and (ii) these Terms and Conditions. For purposes of this Agreement, any documentation, report, product, material or good provided to Customer in the performance of Services shall be referred to as “Deliverables” or “Deliverable” and AMRI’s performance of any services, [****] shall be generally referred to as “Services”. The Agreement shall become binding when accepted by Customer either by acknowledgment or at the time performance of the services begins by mutual agreement. Any terms and conditions proposed by the Customer which are additional to or inconsistent with the Terms and Conditions contained in the Agreement shall be void. In the event a Master Services Agreement (the “MSA”) is in place between the parties, the MSA will govern over any Terms and Conditions. AMRI represents and warrants that it is not and shall not be debarred, and that each employee or independent contractor it engages in connection with activities under this Agreement is not and shall not be debarred, under applicable FDA or other law.
  
 2. DELIVERY SCHEDULE; QUANTITIES; DELAYS IN DELIVERY: All deliveries shall be made in accordance with any timelines set out in the Proposal. [****] In the event Customer requests that any given shipment be delayed beyond the intended shipment date, AMRI will store the material [****]; in such event, [****].
  
 3. TRANSPORTATION, PACKAGING AND SHIPPING: Unless otherwise specified in the Proposal, Deliverables shall be delivered [****]. Title and risk of loss of any Deliverable shall [****]. AMRI herein represents that if mutually agreed in a Proposal, the Deliverables ordered by the Customer are packed in containers and bearing labels, if necessary, which conform to the regulations of the Department of Transportation in effect at the time of shipment. All Deliverables shall be prepared for shipment and packed to prevent damage or deterioration, secure lowest transportation rates, and comply with carrier tariffs.
  
 4. CONFIDENTIAL INFORMATION: The exchange of Confidential Information shall be governed by the Confidentiality Agreement (the “CDA”) in place between the parties. If there is no CDA in place, then the following applies: The Parties anticipate that they will exchange proprietary and confidential information during the term of this Agreement. The Parties shall treat all information (whether written or oral) exchanged hereunder as confidential, and each Party shall use the same degree of care used to protect and maintain its own confidential or proprietary information from unauthorized use or disclosure. Neither Party shall use the other Party’s proprietary or confidential information for any purpose other than in performance of this Agreement. Neither Party shall disclose the other Party’s confidential or proprietary information to any third party without prior written permission from the disclosing Party. The foregoing restrictions shall not apply to information that was in the receiving Party’s possession without confidentiality restrictions prior to receipt from the other Party, or that lawfully becomes publicly available through no fault of the receiving Party. The receiving Party may disclose the other Party’s confidential or proprietary information to its employees and officers requiring access thereto solely as necessary to perform the Services, provided that each such employee and officer is bound by a written agreement to maintain the confidential or proprietary information in strict confidence and to use such information solely to perform the Services. Each Party may disclose information received from the other Party as required by laws, rules or regulations or rules of a securities exchange provided that the Party required to make such disclosure gives notice to the disclosing Party prior to making such disclosure, and uses all commercially reasonable efforts to secure confidential treatment of such information where reasonably available. 
   	 
	 
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
 5. PAYMENT: Unless otherwise specified in the Proposal, AMRI will invoice Customer [****], and upon delivery of any Deliverables, with payment due [****].
  
 6. WARRANTIES: CUSTOMER WARRANTS THAT TO ITS KNOWLEDGE THE USE OF ANY PRODUCT, MATERIALS, PROCESSES, AND THE LIKE FURNISHED TO AMRI UNDER THE AGREEMENT FOR THE PERFORMANCE OF SERVICES (“CUSTOMER MATERIALS”) WILL NOT INFRINGE ON ANY EXISTING PATENT, TRADEMARK OR COPYRIGHT. UNLESS OTHERWISE STATED HEREIN, AMRI DOES NOT MAKE ANY WARRANTY, EXPRESS OR IMPLIED BY STATUTE OR IN WRITING, REGARDING THE SERVICES OR THE DELIVERABLES, INCLUDING WITHOUT LIMITATION ANY WARRANTY REGARDING THEIR FITNESS FOR PURPOSE, THEIR QUALITY, THEIR MERCHANTABILITY OR THEIR NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS. ANY OTHER REPRESENTATIONS OR WARRANTIES MADE BY ANY PERSON OR ENTITY, INCLUDING EMPLOYEES OR REPRESENTATIVES OF A PARTY HERETO, THAT ARE INCONSISTENT HEREWITH, SHALL BE DISREGARDED AND SHALL NOT BE BINDING ON SUCH PARTY.
  
 7. LIMITATION OF LIABILITY: IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ITS AFFILIATES FOR LOST PROFITS OR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR INDIRECT DAMAGES ARISING FROM ANY BREACH OF THIS AGREEMENT OR IN CONNECTION WITH THIS AGREEMENT OR ANY PROPOSAL, INCLUDING WITHOUT LIMITATION ANY BREACH OF A WARRANTY CONTAINED HEREIN OR [****]. LIMITATIONS OF LIABILITY CONTAINED IN THIS SECTION SHALL NOT BE DEEMED TO LIMIT EITHER PARTY’S INDEMNITY OR INSURANCE OBLIGATIONS UNDER THIS AGREEMENT.
  
 8. CHANGES: Customer reserves the right to request changes to the Services being performed pursuant to this Agreement or a Proposal including, without limitation, changes in drawings, specifications and delivery (“Change Orders”). AMRI may agree to comply with such Change Orders. If such Change Orders result in an increase in AMRI’s cost or in the time for performance, an equitable adjustment in the price or time for performance shall be made in writing to Customer and a claim for additional compensation hereunder will be asserted in a timely manner. Prior to AMRI’s acceptance or rejection of the Change Order, the parties shall discuss and agree in writing to any appropriate price and/or time adjustments.
  
 9. INSURANCE: Each Party shall procure and maintain at its own expense appropriate product and commercial liability insurance with respect to the conduct and performance of the Services under each Proposal and/or this Agreement and use or sale of the Deliverables, as each Party customarily maintains with respect to similar activities. Customer shall maintain insurance on all materials that it has or retains title to.
   	 
	 
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
   
 10. FEDERAL, STATE AND LOCAL TAXES: Any taxes, duties or fees applicable to the sale, export or imports of Customer Materials or Deliverables or related to the performance of Services shall be borne by the Party on which such taxes are imposed under law. 
  
 11. INDEMNIFICATION: Customer shall indemnify and hold AMRI, its Affiliates and their directors, officers, employees and agents (“AMRI Indemnitee”) harmless from and against any and all third party claims, damages, liabilities, losses, costs and expenses, including but not limited to attorneys’ fees (collectively, “Claims”) arising from or related to: (i) injury, damage or death in connection with Customer’s or a third party’s use or sale of the Deliverables or results of the Services, or Customer’s or a third party’s manufacture, use or sale of any product or service incorporating the Deliverables, including without limitation any Claims attributable to any product incorporating Deliverables (whether based on strict liability, inherent design defect, negligence, failure to warn, breach of contracts or any other theory of liability); (ii) the manufacture, use or sale of any Deliverable or Customer materials, or Customer product incorporating Deliverables, infringing a third party’s patent or other intellectual property rights (except to the extent covered by subsection (A) below); (iii) any gross negligence or willful misconduct of Customer or any of its directors, officers, employees, or agents (“Customer Indemnitee”); and (iv) Customer’s failure to comply with all applicable laws, statutes, rules, regulations and orders of governmental, public and quasi-public authorities; except to the extent that such Claim is caused by the gross negligence or willful misconduct of AMRI Indemnitees. AMRI shall indemnify and hold Customer Indemnitees harmless from and against any and all Claims to the extent arising from: (A) the manufacture, use or sale of any AMRI Proprietary Technology (as defined in the Proposal) infringing a third party’s patent or other intellectual property rights; (B) any gross negligence or willful misconduct of or breach of a representation or warranty by any AMRI Indemnitee in connection with the Agreement; and (C) AMRI’s failure to comply with all applicable laws, statutes, rules, regulations and orders of governmental, public and quasi-public authorities; except to the extent that such Claim is caused by the gross negligence or willful misconduct of or breach of a representation or warranty by Company Indemnitees.
  
 12. ASSIGNMENT: Neither Party may assign or delegate any or all of its rights or obligations under this Agreement, or transfer this Agreement, without the prior written consent of the other party, except that either Party shall have the right to assign any of its rights, delegate any of its obligations, or transfer this Agreement without such consent (i) to an affiliate of such Party or (ii) as part of a merger or acquisition of such party or sale of all assets to which this Agreement relates. Any assignment by a Party shall bind its assignee to all provisions of this Agreement. Any assignment, delegation or transfer by either Party without the consent of the other Party shall be void and of no effect.
  
 13. TERMINATION FOR CONVENIENCE: Except as otherwise specified in the Proposal, [****]. Such written notice shall state the extent and the effective date of termination. [****]. Termination by Company under this Section shall be without prejudice to any claims Company may have against AMRI.
   	 
	 
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
   
 14. TERMINATION FOR DEFAULT: Each of the following events shall constitute a default by a Party for purposes of this Agreement (a) the insolvency of such Party, (b) any assignment for the benefit of creditors of such Party, (c) the voluntary or involuntary filing of a petition order or other decree in bankruptcy by or against such Party, (d) the commencement of any proceeding, under court supervision or otherwise, for liquidation of, reorganization of, or the composition, extension, arrangement or readjustment of the obligations of such Party, and (e) failure by such Party to comply with any of the provisions of the Agreement in any material respect, and (f) proof that any representations by such party were false when made. In the event of a default by Party which is not cured within thirty (30) days of receiving a notice of default, the other Party may terminate this Agreement in writing.
  
 15. EFFECT OF TERMINATION: Upon termination, Customer’s obligation to AMRI shall be set forth in a final invoice and may include [****].
  
 16. WAIVER: No delay or omission in exercising any right or remedy shall operate as a waiver thereof or of any other right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights, powers, elections and remedies of the Parties hereunder are cumulative and in addition to those which the Parties have at law or in equity. A Party’s failure to object to any provision contained in any communication from the other Party shall not be deemed an acceptance of such provision or a waiver of any provision of this Agreement.
  
 17. COMPLIANCE WITH LAWS: Each Party shall, in the performance of the Agreement, comply with all applicable laws, statutes, rules, regulations and orders of governmental, public and quasi-public authorities.
  
 18. BRIBERY AND CORRUPT PRACTICES: AMRI is committed to complying with all applicable anti-corruption laws, regulations and policies worldwide. AMRI expects its customers, suppliers and business partners to comply with all such laws that prohibit the making, offering or promise of any payment or anything of value, directly or indirectly, to a government official or a government agency (“Officials”), when the payment is intended to influence an act or decision or the retention of business. Accordingly, each Party represents, agrees and warrants that it shall comply with all applicable anti-corruption laws, rules and regulations, including but not limited to the United States Foreign Corrupt Practices Act and the UK Bribery Act, and that it shall not make any payment of money, gifts, services or anything of value either directly or indirectly, to an Official, when the payment is intended to influence an act or decision or the retention of business.
  
 19. FORCE MAJEURE: Neither Party shall be liable for, or in connection with, any failure or delay in performance due [****] which prevents or hinders such party from performing the services as provided for under the Agreement.
  
 20. GOVERNING LAW; ARBITRATION: This Agreement shall be governed by, interpreted and construed in accordance with the laws of the State of New York, without regard to the principles of conflicts of law. All disputes arising from or related to this Agreement may be submitted to arbitration in Albany, New York (or at a location agreed to by AMRI) under the rules then prevailing of the American Arbitration Association and judgment may be entered on any award in a court of competent jurisdiction. The parties acknowledge and agree that the United Nations Convention on Contracts for the International Sale of Goods is specifically excluded from application to this Agreement.Exhibit

Exhibit 10.1

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT by and between Warrior Met Coal, Inc. (the “Company”), and Phillip C. Monroe (“Executive”) (collectively, the “Parties”) is entered into as of March 5, 2018 (the “Effective Date”).
WHEREAS, the Company and Executive desire to enter into this employment agreement (this “Agreement”) pursuant to the terms, provisions and conditions set forth herein, which will govern the terms of Executive’s employment with the Company. 
NOW, THEREFORE, in consideration of the premises and of the mutual covenants, understandings, representations, warranties, undertakings and promises hereinafter set forth, intending to be legally bound thereby, the Parties agree as follows:
		
	1.
	Employment Period.

Executive shall be employed by the Company for a period commencing as of the Effective Date and continuing until such time as Executive’s employment is terminated in accordance with Section 3 hereof (the “Employment Period”).  Upon Executive’s termination of employment with the Company for any reason, Executive shall immediately resign all positions with the Company and any of its subsidiaries and affiliates, including any position as a member of the Company’s Board of Directors (the “Board”).  The Company and its subsidiaries and affiliates are herein referred to collectively as the “Company Group.”
		
	2.
	Terms of Employment.

(a)    Position.  During the Employment Period, Executive shall serve as General Counsel of the Company and will perform such duties and exercise such supervision with regard to the business of the Company as are commensurate with such position, including such duties as may be prescribed from time to time by the Chief Executive Officer of the Company (the “CEO”).  Executive shall report directly to the CEO and, if reasonably requested by the Board, Executive hereby agrees to serve (without additional compensation) as an officer and director of the Company Group.
(b)    Duties.     During the Employment Period, Executive shall have such responsibilities, duties and authority that are commensurate with Executive’s position, subject at all times to the control of the CEO, and shall perform such services as customarily are provided by an executive of a corporation with Executive’s position and such other services consistent with Executive’s position, as shall be assigned to Executive from time to time by the CEO.  During the Employment Period, and excluding any periods of vacation and sick leave to which Executive is entitled, Executive agrees to devote all of Executive’s business time to the business and affairs of the Company and to use Executive’s commercially reasonable efforts to perform faithfully, effectively and efficiently Executive’s responsibilities and obligations hereunder. Executive shall be entitled to engage in charitable and educational activities and to manage Executive’s personal and family investments, to the extent such activities are not competitive with the business of the Company, do not interfere with the performance of Executive’s duties for the Company and are otherwise consistent with the Company’s governance policies.

04315491.2    

(c)    Compensation. 
(i)    Base Salary.  During the Employment Period, Executive shall receive an annual base salary in an amount equal to two hundred ninety thousand dollars ($290,000), less all applicable withholdings, which shall be paid in accordance with the customary payroll practices of the Company and prorated for partial calendar years of employment (as in effect from time to time, the “Annual Base Salary”).  The Annual Base Salary shall be subject to annual review by the Board, in its sole discretion, for possible increase and any such increased Annual Base Salary documented in the form of a resolution adopted by the Board or an amendment to this Agreement shall constitute “Annual Base Salary” for purposes of this Agreement.
(ii)    Annual Bonus.  During the Employment Period, with respect to each completed fiscal year of the Company, Executive shall be eligible to receive a bonus (the “Bonus”) with a target amount equal to seventy-five percent (75%) of Annual Base Salary contingent upon the achievement of qualitative and quantitative performance goals approved by the Board.  The Bonus, if any, shall be paid in accordance with the terms of the applicable bonus plan as in effect from time to time, and shall require that Executive be employed with the Company on the date of payment of such Bonus.
(iii)    Equity Awards.  During the Employment Period, Executive shall be entitled to receive equity awards under the Warrior Met Coal, Inc. 2017 Equity Incentive Plan and any other incentive compensation plan or arrangement adopted by the Company from time to time in which similarly situated executives of the Company are eligible to participate, in amounts and at times determined by and subject to approval of the Board. 
(iv)    Benefits.  During the Employment Period, Executive shall be eligible to participate in all retirement, compensation and employee benefit plans, practices, policies and programs provided by the Company to the extent applicable generally to other similarly situated executives of the Company (except severance plans, policies, practices or programs) subject to the eligibility criteria set forth therein, as such may be amended or terminated from time to time.
(v)    Expenses.  During the Employment Period, Executive shall be entitled to receive reimbursement for all reasonable business expenses incurred by Executive in performance of Executive’s duties hereunder provided that Executive provides all necessary documentation in accordance with the Company’s policies.
(vi)    The Company shall indemnify Executive, to the fullest extent permitted by applicable law, against all costs, charges and expenses incurred or sustained by Executive, including the cost and expenses of legal counsel, in connection with any action, suit or proceeding (collectively a “Proceeding”) to which Executive may be made a party by reason of Executive being or having been an officer, director or employee of the Company Group.  Notwithstanding the preceding sentence, Executive shall not be entitled to indemnification in connection with any gross negligence or willful misconduct of Executive.   Executive shall be covered during the entire term of this Agreement and thereafter for at least six (6) years by officer and director liability insurance in amounts and on terms similar to that afforded to other executives and/or directors of the Company Group.

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	3.
	Termination of Employment.

(a)    Death or Disability.  Executive’s employment shall terminate automatically upon Executive’s death.  If Executive becomes subject to a Disability (as defined below) during the Employment Period, the Company may give Executive written notice in accordance with Sections 3(f) and 10(g) of its intention to terminate Executive’s employment.  For purposes of this Agreement, “Disability” means Executive’s inability to perform Executive’s duties hereunder by reason of any medically determinable physical or mental impairment for a period of six (6) months or more in any twelve (12) month period.
(b)    Cause.  Executive’s employment may be terminated at any time by the Company for Cause.  For purposes of this Agreement, “Cause” means Executive’s (i) commission of, conviction for, plea of guilty or nolo contendere to a felony or a crime involving moral turpitude, or other material act or omission involving dishonesty or fraud, (ii) engaging in conduct that constitutes fraud or embezzlement, (iii) engaging in conduct that constitutes gross negligence or willful gross misconduct that results or could reasonably be expected to result in harm to the Company Group’s business or reputation, (iv) breach of any material terms of Executive’s employment, which results or could reasonably be expected to result in harm to the Company Group’s business or reputation, (v) continued willful failure to substantially perform Executive’s duties or (vi) breach of any material policy of the Company Group that is applicable to employees generally that is reasonably likely to result in demonstrable harm to the Company Group.  Executive’s employment shall not be terminated for “Cause” within the meaning of clauses (iv), (v) or (vi) above unless Executive has been given written notice stating the basis for such termination and Executive is given fifteen (15) days to cure, to the extent curable, the act or omission that is the basis of any such claim.
(c)    Termination Without Cause.  The Company may terminate Executive’s employment hereunder without Cause at any time.
(d)    Good Reason.  Executive’s employment may be terminated at any time by Executive for Good Reason upon thirty (30) days’ prior written notice following the occurrence of the event giving rise to the termination for Good Reason.  For purposes of this Agreement, “Good Reason” means voluntary resignation after any of the following actions taken by the Company without Executive’s written consent: (i) a material diminution in Executive’s title or authority, (ii) any material failure to pay compensation when due, (iii) a reduction in base pay or bonus opportunity other than reductions applicable to senior executives generally, (iv) relocation of Executive’s principal place of business by more than 50 miles that materially increases Executive’s commute or (v) any other material breach of this Agreement by the Company.  Executive’s employment shall not be terminated for “Good Reason” unless Executive has given the Company written notice stating the condition that is the basis for such termination within thirty (30) days following the initial occurrence of the event or condition allegedly constituting Good Reason and the Company fails to cure such condition within fifteen (15) days following receipt of such notice.
(e)    Voluntary Termination.  Executive’s employment may be terminated at any time by Executive without Good Reason upon thirty (30) days’ prior written notice.

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(f)    Notice of Termination.  Any termination by the Company for Cause or without Cause, or by Executive for Good Reason or without Good Reason, shall be communicated by Notice of Termination (as defined below) to the other party hereto given in accordance with Section 10(g).  For purposes of this Agreement, a “Notice of Termination” means a written notice that (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date.  The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder.
(g)    Date of Termination.  For purposes of this Agreement, “Date of Termination” means (i) if Executive’s employment is terminated by the Company for Cause, without Cause or by reason of Disability, the date of receipt of the Notice of Termination in accordance with Section 3(a), Section 3(b) or Section 3(c) or any later date specified therein pursuant to Section 3(f), as the case may be, (ii) if Executive’s employment is terminated by Executive for Good Reason or without Good Reason, the date specified in the Notice of Termination in accordance with Section 3(d) or Section 3(e) or any later date specified therein pursuant to Section 3(f), as the case may be, and (iii) if Executive’s employment is terminated by reason of death, the date of death.
		
	4.
	Obligations of the Company upon Termination.

(a)    Without Cause; For Good Reason. If during the Employment Period, the Company shall terminate Executive’s employment without Cause or Executive shall terminate Executive’s employment for Good Reason, then the Company will provide Executive with the following payments and/or benefits:
(i)    the Company shall pay to Executive as soon as reasonably practicable but no later than the 15th day of the third month following the end of the calendar year that contains the Date of Termination in a lump sum to the extent not previously paid, (A) the Annual Base Salary through the Date of Termination, (B) the amount of any unpaid expense reimbursements to which Executive may be entitled pursuant to Section 2(c)(v) hereof, and (C) any other vested payments or benefits to which Executive or Executive’s estate may be entitled to receive under any of the Company’s benefit plans or applicable law, in accordance with the terms of such plans or law (clauses (A)-(C), the “Accrued Obligations”); 
(ii)    subject to Section 4(e) below, the Company shall pay Executive an amount equal to one times (lx) Executive’s Annual Base Salary as in effect as of the Date of Termination in substantially equal installments in accordance with the Company’s customary payroll practices, commencing on the first payroll date occurring on or after the date that is sixty (60) days following the Date of Termination (with the first installment inclusive of the installments that would have otherwise been payable during such initial sixty (60) day period) and ending on the first anniversary of the Date of Termination (the “Severance Payment”); and

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(iii)    subject to Section 4(e) below, after a Date of Termination occurring following the third quarter of the Company’s fiscal year, the Company shall pay Executive as soon as reasonably practicable but no later than the 15th day of the third month following the end of the calendar year that contains the Date of Termination a prorated bonus for the year of termination based on the number of days in such year elapsed through the Date of Termination, with the amount thereof determined based on the actual result of the Company for such year and payable when bonuses for such year are generally paid to employees of the Company (the “Prorated Bonus”).
(b)    Without Cause; For Good Reason following a Change in Control.  If during the Employment Period, a Change in Control (as defined below) occurs and within twelve (12) months following the occurrence of such Change in Control, the Company shall terminate Executive’s employment without Cause or Executive shall terminate Executive’s employment for Good Reason, then, in lieu of the payments and benefits described in Section 4(a) above, the Company will provide Executive with the following payments and/or benefits:
(i)    the Company shall pay to Executive as soon as reasonably practicable but no later than the 15th day of the third month following the end of the calendar year that contains the Date of Termination a lump sum amount equal to the Accrued Obligations; and
(ii)    subject to Section 4(e) below, the Company shall pay to Executive as soon as reasonably practicable but no later than the 15th day of the third month following the end of the calendar year that contains the Date of Termination a lump sum amount equal to one and one-half times (1.5x) Executive’s Annual Base Salary as in effect as of the Date of Termination (the “Enhanced Severance Payment”).
For purposes of this Agreement, “Change in Control” means, with respect to the Company, the first to occur of any of the following: (i) the acquisition by any person or “group” (as defined in section 13(d) of the Securities Exchange Act of 1934, as amended), other than by (A) the Company Group; (B) any employee benefit plan of the Company Group; or (C) any holder of the Company’s equity securities issued in connection with the Company’s 2016 reorganization, through one transaction or a series of related transactions of more than 50% of the combined voting power of the then outstanding voting securities of the Company; (ii) the merger or consolidation of the Company as a result of which persons who were holders of the Company’s equity securities immediately prior to such merger or consolidation, do not, immediately thereafter, own, directly or indirectly, 50% or more of the combined voting power entitled to vote generally in the election of directors of the merged or consolidated company; or (iii) the sale, transfer or other disposition of all or substantially all of the assets of the Company and its subsidiaries (determined on a consolidated basis) through one transaction or a series of related transactions occurring during any period of twelve (12) consecutive months to one or more persons who are not, immediately prior to such sale, transfer or other disposition, holders of the Company’s securities or affiliates of the Company.
Notwithstanding the foregoing, a “Change of Control” shall not be deemed to occur (i) unless such transaction satisfies the requirements of Treasury Regulation Section 1.409A-3(i)(5)(v) or (vii) or (ii) upon the occurrence of any liquidation or dissolution of the Company, including if the Company files for bankruptcy, liquidation or reorganization under the United States Bankruptcy Code.

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(c)    Death or Disability.  If Executive’s employment shall be terminated by reason of Executive’s death or Disability, then the Company will provide Executive with the Accrued Obligations within ninety (90) days of the date of receipt of the Notice of Termination.  Thereafter, the Company shall have no further obligation to Executive or Executive’s legal representatives.
(d)    Cause; Other than for Good Reason.  If Executive’s employment shall be terminated by the Company for Cause or by Executive without Good Reason, then the Company shall have no further obligations to Executive other than for payment of the Accrued Obligations.
(e)    Separation Agreement and General Release.  The Company’s obligation to provide the Severance Payment, the Enhanced Severance Payment or the Prorated Bonus is conditioned on Executive’s or Executive’s legal representative’s executing a separation agreement and general release of claims related to or arising from Executive’s employment with the Company or the termination of employment, against the Company Group (and their respective officers and directors) in a form reasonably determined by the Company, which shall be provided by the Company to Executive within five (5) days following the Date of Termination; provided, that, if Executive should fail to execute (or revokes) such release within sixty (60) days following the Date of Termination, the Company shall not have any obligation to provide the Severance Payment, the Enhanced Severance Payment or the Prorated Bonus.  If Executive executes the release within such sixty (60) day period and does not revoke the release within seven (7) days following the execution of the release, the Severance Payment, the Enhanced Severance Payment or the Prorated Bonus will be provided in accordance with Section 4(a)(ii), Section 4(a)(iii) or Section 4(b)(ii), as applicable.
		
	5.
	Restrictive Covenants.

(a)    Non-Solicitation.  In consideration of Executive’s employment and receipt of payments hereunder, during the period commencing on the Effective Date and ending twenty-four (24) months after the Date of Termination, Executive shall not directly, or indirectly through another person, (x) induce or attempt to induce any employee, representative, agent or consultant of the Company Group to leave the employ or services of the Company Group, or in any way interfere with the relationship between the Company Group and any employee, representative, agent or consultant thereof, (y) hire any person who was an employee, representative, agent or consultant of the Company Group at any time during the twelve-month period immediately prior to the date on which such hiring would take place or (z) directly or indirectly call on, solicit or service any customer, supplier, licensee, licensor, representative, agent or other business relation of the Company Group in order to induce or attempt to induce such person to cease doing business with, or reduce the amount of business conducted with, the Company Group, or in any way interfere with the relationship between any such customer, supplier, licensee, licensor, representative, agent or business relation of the Company Group.  No action by another person or entity shall be deemed to be a breach of this provision unless Executive directly or indirectly assisted, encouraged or otherwise counseled such person or entity to engage in such activity.
(b)    Non-Competition.  Executive hereby acknowledges that it is familiar with the Confidential Information (as defined below) of the Company and its subsidiaries.  Executive acknowledges and agrees that the Company would be irreparably damaged if Executive were to provide services to any person competing with the Company Group engaged in a similar business 

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and that such competition by Executive would result in a significant loss of goodwill by the Company.  Therefore, Executive agrees that during the period commencing on the Effective Date and ending twelve (12) months after the Date of Termination, Executive shall not (and shall cause each of Executive’s or its affiliates not to) directly or indirectly own any interest in, manage, control, participate in (whether as an officer, director, manager, employee, partner, equity holder, member, agent, representative or otherwise), consult with, render services for, or in any other manner engage in any business engaged directly or indirectly, in the Geographic Area (as defined below), in the business of the Company or any of its subsidiaries as currently conducted or proposed to be conducted as of the Date of Termination; provided, that nothing herein shall prohibit Executive from being a passive owner of not more than 5% of the outstanding stock of any class of a corporation which is publicly traded so long as Executive does not have any active participation in the business of such corporation.  For purposes of this Agreement, the “Geographic Area” shall mean North America.
(c)    Non-Disclosure; Non-Use of Confidential Information. Executive shall not disclose or use at any time, either during Executive’s employment with the Company or at any time thereafter, any Confidential Information of which Executive is or becomes aware, whether or not such information is developed by Executive, except to the extent that such disclosure or use is directly related to and required by Executive’s performance in good faith of duties assigned to Executive by the Company.  Executive will take all appropriate steps to safeguard Confidential Information in Executive’s possession and to protect it against disclosure, misuse, espionage, loss and theft.  Executive shall deliver to the Company at the termination of Executive’s employment with the Company, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the Work Product (as defined below) of the business of the Company Group that Executive may then possess or have under Executive’s control.
(d)    Proprietary Rights.  Executive recognizes that the Company Group possesses a proprietary interest in all Confidential Information and Work Product and has the exclusive right and privilege to use, protect by copyright, patent or trademark, or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Executive, except as otherwise agreed between the Company Group and Executive in writing.  Executive expressly agrees that any Work Product made or developed by Executive or Executive’s agents during the course of Executive’s employment, including any Work Product which is based on or arises out of Work Product, shall be the property of and inure to the exclusive benefit of the Company Group.  Executive further agrees that all Work Product developed by Executive (whether or not able to be protected by copyright, patent or trademark) during the course of Executive’s employment with the Company, or involving the use of the time, materials or other resources of the Company Group, shall be promptly disclosed to the Company Group and shall become the exclusive property of the Company Group, and Executive shall execute and deliver any and all documents necessary or appropriate to implement the foregoing.
(e)    Certain Definitions.
(i)    For purposes of this Agreement, “Confidential Information” means information that is not generally known to the public (but for purposes of clarity, Confidential 

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Information shall never exclude any such information that becomes known to the public because of Executive’s unauthorized disclosure) and that is used, developed or obtained by the Company Group in connection with its business, including, but not limited to, information, observations and data obtained by Executive while employed by the Company Group concerning (A) the business or affairs of the Company Group, (B) products or services, (C) fees, costs and pricing structures, (D) designs, (E) analyses, (F) drawings, photographs and reports, (G) computer software, including operating systems, applications and program listings, (H) flow charts, manuals and documentation, (I) databases, (J) accounting and business methods, (K) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (L) customers and clients and customer or client lists, (M) other copyrightable works, (N) all production methods, processes, technology and trade secrets, and (0) all similar and related information in whatever form.  Confidential Information will not include any information that has been published in a form generally available to the public (except as a result of Executive’s unauthorized disclosure) prior to the date Executive proposes to disclose or use such information.  Confidential Information will not be deemed to have been published or otherwise disclosed merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination.
(ii)    For purposes of this Agreement, “Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) that relates to the Company Group’s actual or anticipated business, research and development or existing or future products or services and that are conceived, developed or made by Executive (whether or not during usual business hours and whether or not alone or in conjunction with any other person) while employed by the Company together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing.
(f)    Enforcement.  If Executive commits a breach of any of the provisions of this Section 5 or Section 6 below, the Company shall have the right and remedy to have the provisions specifically enforced by any court having jurisdiction, it being acknowledged and agreed by Executive that the services being rendered hereunder to the Company Gruop are of a special, unique and extraordinary character and that any such breach will cause irreparable injury to the Company Group and that money damages will not provide an adequate remedy to the Company Group.  Such right and remedy shall be in addition to, and not in lieu of, any other rights and remedies available to the Company at law or in equity.  Accordingly, Executive consents to the issuance of an injunction, whether preliminary or permanent, consistent with the terms of this Agreement (without posting a bond or other security) if the Company establishes a violation of Section 5 or Section 6 of this Agreement.
(g)    Blue Pencil.  If, at any time, the provisions of this Section 5 shall be determined to be invalid or unenforceable under any applicable law, by reason of being vague or unreasonable as to area, duration or scope of activity, this Agreement shall be considered divisible and shall become and be immediately amended to only such area, duration and scope of activity as shall be determined to be reasonable and enforceable by the court or other body having jurisdiction over the matter and 

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Executive and the Company agree that this Agreement as so amended shall be valid and binding as though any invalid or unenforceable provision had not been included herein.
(h)    Tolling.  The periods during which the covenants set forth in this Section 5 shall survive shall be tolled during (and shall be deemed automatically extended by) any period during which Executive is in violation of any such covenants, to the extent permitted by applicable law.
(i)    Severance Payment.     In addition to the foregoing, and not in any way in limitation of any right or remedy otherwise available to the Company, if Executive violates Section 5 or Section 6 hereof, any Severance Payment or Enhanced Severance Payment then or thereafter due from the Company to Executive shall be terminated immediately and the Company’s obligation to pay and Executive’s right to receive such Severance Payment or Enhanced Severance Payment shall terminate and be of no further force or effect.
(j)    EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS CAREFULLY READ THIS SECTION 5 AND HAS HAD THE OPPORTUNITY TO REVIEW ITS PROVISIONS WITH ANY ADVISORS AS EXECUTIVE CONSIDERED NECESSARY AND THAT EXECUTIVE UNDERSTANDS THIS AGREEMENT’S CONTENTS AND SIGNIFIES SUCH UNDERSTANDING AND AGREEMENT BY SIGNING BELOW.
		
	6.
	Non-Disparagement.

During the Employment Period and at all times thereafter, neither Executive nor Executive’s agents, on the one hand, nor the Company formally, or its executives or Board, on the other hand, shall directly or indirectly issue or communicate any public statement, or statement likely to become public, that maligns, denigrates or disparages the other (including, in the case of communications by Executive or Executive’s agents, the Company Group, any of Company Group’s officers, directors or employees, Apollo, GSO, KKR, or Franklin or any affiliate thereof).  The foregoing shall not be violated by truthful responses to (i) legal process or governmental inquiry or (ii) by private statements to the Company Group or any of the Company Group’s officers, directors or employees; provided, that, in the case of Executive, with respect to clause (ii), such statements are made in the course of carrying out Executive’s duties pursuant to this Agreement.
		
	7.
	Confidentiality of Agreement.

The Parties agree that the consideration furnished under this Agreement, the discussions and correspondence that led to this Agreement, and the terms and conditions of this Agreement are private and confidential.  Except as may be required by applicable law, regulation or stock exchange requirement, neither Party may disclose the above information to any other person or entity without the prior written approval of the other.
		
	8.
	Compensation Recovery Policy.

 If any of the Company’s financial statements are required to be restated due to errors, omissions, fraud or misconduct (including, but not limited to, circumstances where the Company has been required to prepare an accounting restatement due to material non-compliance with any 

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financial reporting requirement, as enforced by the Securities and Exchange Commission), the Compensation Committee of the Board or the Board may, in its sole discretion but acting in good faith, direct that the Company recover all or a portion of any cash incentive, equity compensation or severance disbursements paid to Executive with respect to any fiscal year of the Company for which the financial results are negatively affected by such restatement.
		
	9.
	Executive’s Representations, Warranties and Covenants. 

Executive hereby represents and warrants to the Company that:
(i)    Executive has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, and this Agreement has been duly executed by Executive;
(ii)    the execution, delivery and performance of this Agreement by Executive does not and will not, with or without notice or the passage of time, conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject;
(iii)    Executive is not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, fee for services agreement, confidentiality agreement or similar agreement with any other person;
(iv)    upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will be a legal, valid and binding obligation of Executive, enforceable in accordance with its terms;
(v)    Executive understands that the Company will rely upon the accuracy and truth of the representations and warranties of Executive set forth herein and Executive consents to such reliance; and
(vi)    as of the date of execution of this Agreement, Executive is not in breach of any of its terms, including having committed any acts that would form the basis for a Cause termination if such act had occurred after the Effective Date.
		
	10.
	General Provisions.

(a)    Severability.  It is the desire and intent of the Parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable under any present or future law, and if the rights and obligations of any party under this Agreement will not be materially and adversely affected thereby, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction; furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this 

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Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
(b)    Entire Agreement and Effectiveness.  Effective as of the Effective Date, this Agreement embodies the complete agreement and understanding among the Parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the Parties, written or oral, which may have related to the subject matter hereof in any way.
(c)    Successors and Assigns.
(i)    This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.
(ii)    This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law, or otherwise.
(d)    Governing Law.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED.  IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.
(e)    Enforcement. 
(i)    Arbitration.  Except for disputes arising under Section 5 or Section 6 of this Agreement (including, without limitation, any claim for injunctive relief), any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the Parties are unable to resolve by mutual agreement, shall be settled by submission by either Executive or the Company of the controversy, claim or 

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dispute to binding arbitration in Alabama (unless the Parties agree in writing to a different location), before a single arbitrator in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association then in effect.  In any such arbitration proceeding, the Parties agree to provide all discovery deemed necessary by the arbitrator.  The decision and award made by the arbitrator shall be accompanied by a reasoned opinion, and shall be final, binding and conclusive on all Parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof.  The Company will bear the totality of the arbitrator’s and administrative fees and costs.  Each Party shall bear its or his or her litigation costs and expenses; provided, however, that the arbitrator shall have the discretion to award the prevailing party reimbursement of its or his or her reasonable attorney’s fees and costs.  Upon the request of any of the Parties, at any time prior to the beginning of the arbitration hearing, the Parties may attempt in good faith to settle the dispute by mediation administered by the American Arbitration Association.  The Company will bear the totality of the mediator’s and administrative fees and costs.
(ii)    Remedies.  All remedies hereunder are cumulative, are in addition to any other remedies provided for by law and may, to the extent permitted by law, be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed to be an election of such remedy or to preclude the exercise of any other remedy.
(iii)    Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
(f)    Amendment and Waiver.  The provisions of this Agreement may be amended and waived only with the prior written consent of the Company and Executive and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Agreement or any provision hereof.
(g)    Notices.  Any notice provided for in this Agreement must be in writing and must be either personally delivered, transmitted via telecopier, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or at such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.  Notices will be deemed to have been given hereunder and received when delivered personally, when received if transmitted via telecopier, five (5) days after deposit in the U.S. mail and one day after deposit for overnight delivery with a reputable overnight courier service.
If to the Company, to:
Warrior Met Coal, Inc.
16243 Highway 216
Brookwood, AL 35444
Attention:  Chief Executive Officer

with a copy (which shall not constitute notice) to:

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Maynard, Cooper & Gale, P.C.
1901 Sixth Ave. North
Suite 2400
Birmingham, AL 35203
Facsimile:  (205) 254-1999
Attention:  Timothy W. Gregg

If to Executive, to:

Executive’s home address most recently on file with the Company.
(h)    Withholdings Taxes.  The Company may withhold from any amounts payable under this Agreement such federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.
(i)    Survival of Representations, Warranties and Agreements.  All representations, warranties and agreements contained herein shall survive the consummation of the transactions contemplated hereby indefinitely.
(j)    Descriptive Headings.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.  All references to a “Section” in this Agreement are to a section of this Agreement unless otherwise noted.
(k)    Construction.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.  The language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any Party.
(l)    Counterparts.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.
(m)    Section 409A.  Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or shall comply with the requirements of such provision.  Notwithstanding anything in this Agreement or elsewhere to the contrary, distributions upon termination of Executive’s employment may only be made upon a “separation from service” as determined under Section 409A of the Code.  Each payment under this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A of the Code.  In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement or otherwise which constitutes a “deferral of compensation” within the meaning of Section 409A of the Code.  All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code.  To 

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the extent that any reimbursements pursuant to this Agreement or otherwise are taxable to Executive, any reimbursement payment due to Executive shall be paid to Executive on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred; provided, that, Executive has provided the Company written documentation of such expenses in a timely fashion and such expenses otherwise satisfy the Company’ expense reimbursement policies.  Reimbursements pursuant to this Agreement or otherwise are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that Executive receives in one taxable year shall not affect the amount of such reimbursements that Executive receives in any other taxable year.  Notwithstanding any provision in this Agreement to the contrary, if on the date of his termination from employment with the Company, Executive is deemed to be a “specified employee” within the meaning of Code Section 409A and the Final Treasury Regulations using the identification methodology selected by the Company from time to time, or if none, the default methodology under Code Section 409A, any payments or benefits due upon a termination of Executive’s employment under any arrangement that constitutes a “deferral of compensation” within the meaning of Code Section 409A shall be delayed and paid or provided (or commence, in the case of installments) on the first payroll date on or following the earlier of (i) the date which is six (6) months and one (1) day after Executive’s termination of employment for any reason other than death, and (ii) the date of Executive’s death, and any remaining payments and benefits shall be paid or provided in accordance with the normal payment dates specified for such payment or benefit.  Notwithstanding any of the foregoing to the contrary, the Company and its officers, directors, employees or agents make no guarantee that the terms of this Agreement as written comply with, or are exempt from, the provisions of Code Section 409A, and none of the foregoing shall have any liability for the failure of the terms of this Agreement as written to comply with, or be exempt from, the provisions of Code Section 409A.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.
WARRIOR MET COAL, INC.
By:  /s/ Kelli K. Gant                     
Name:  Kelli K. Gant                    
Title:  Chief Administrative Officer            

EXECUTIVE
/s/ Phillip C. Monroe                    
 Name:  Phillip C. Monroe                
Title:  General Counsel                
 
 

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