Document:

Document

July 15, 2020    

Barbara A. Kosacz
28140 Story Hill Lane
Los Altos Hills, CA
94022 

Re:    Employment Letter

Dear Ms. Kosacz:

Kronos Bio, Inc. (the “Company”) is pleased to offer you the position of Chief Operating Officer and General Counsel of the Company, on the following terms and conditions (the “Agreement”):

1.Title; Reporting; Duties.  

(a)As Chief Operating Officer and General Counsel, you will perform such duties as are customarily provided by a Chief Operating Officer and General Counsel of a similarly situated company in the United States and shall have such other responsibilities and duties as may be from time to time directed by the Company.  You shall report directly to the Company’s Chief Executive Officer.

(b)You shall devote substantially all of your business time, attention and energies to the business and affairs of the Company and shall not during the term of your employment be actively engaged in any other business activity, whether or not such business activity is pursued for gain, profit or other pecuniary advantage, that will interfere with the performance of your duties or your availability to perform such duties or that will adversely affect, or negatively reflect upon, the Company.  Any such outside business activities that you may wish to pursue during the term of your employment with the Company shall require the prior written consent of the Company’s Chief Executive Officer. Notwithstanding the foregoing, you may continue to provide the services set forth on Exhibit A, attached hereto and made a part hereof, in the capacity set forth thereon.  

(c)Your duties shall be performed primarily at 1300 S. El Camino Real, Suite 300, San Mateo, CA 94402 or such other place as the parties may agree.

2.Start Date.  Your employment shall commence on July 15, 2020, or such other date as may be agreed to by you and the Company (the “Start Date”).

3.Compensation.  

(a)Base Salary. You shall receive an annual base salary equal to Three Hundred Fifty Thousand Dollars (US$350,000), which shall be payable in accordance with the Company’s payroll practices. 

(b)Performance Bonus.  You shall be eligible to receive an annual performance bonus payable in cash at a target amount equal to 35% of your Base Salary, subject to the successful achievement of agreed upon individual and corporate performance goals, payable at the same time as such bonuses are generally paid to the Company’s executive officers. Any Performance Bonus paid to you for the calendar year 2020 shall be pro-rated.

(c)Withholding. Except as expressly stated otherwise, the Company shall withhold all applicable federal, state and local taxes and social security and such other amounts as may be required by law from all amounts payable under this Section 3.

4.Equity Awards.   

(a)Restricted Stock Awards.  Subject to the approval of the Board of Directors of the Company (the “Board”), or an authorized committee thereof, you shall be granted a Restricted Stock Award of 260,039 shares of common stock of the Company, par value $0,001 per share (the “Common Stock”) pursuant to the Company’s 2017 Equity Incentive Plan (the “Plan”).  Such grant shall be evidenced by a Restrictive Stock Agreement to be entered into by and between you and the Company.  In the event of a conflict between this Agreement and the Restricted Stock Agreement, the terms of the Restricted Stock Agreement shall control.  The shares subject to the Restricted Stock Award (the “Restricted Shares”) shall vest as follows: (i) 130,020 Restricted Shares shall be fully vested on the date the Restricted Stock Award is granted (the “RSA Grant Date”); (ii) 32,505 Restricted Shares shall vest upon the first anniversary of your Start Date; and thereafter, (iii) 97,514 Restricted Shares shall vest in 36 substantially equal monthly installments on the last business day of each calendar month.

(b)Employment Options. Subject to the approval of the Board or an authorized committee thereof, you shall be granted a stock option (the “Employment Option”) to purchase 317,544 shares of Common Stock (the “Employment Option Shares”) pursuant to the Plan.  Such grant shall be evidenced by an option agreement (the “Option Agreement”) to be entered into by and between you and the Company.  In the event of a conflict between this Agreement and the Option Agreement, the terms of the Option Agreement shall control. The exercise price per Employment Option Share will be equal to the fair market value per share of the Company’s Common Stock as of the date that such Employment Option is granted.  The Employment Option shall have a 10-year term and shall vest and become exercisable as follows: (i) 73,136 Employment Options shall vest upon the first anniversary of your Start Date (the “Initial Vesting Date”); and thereafter (ii) the remaining unvested Employment Options Shares shall vest in 36 substantially equal monthly installments as of the last calendar day of each month following the Initial Vesting Date.

(c)Early Exercise.  All Employment Options shall be immediately exercisable with respect to one hundred percent (100%) of the Employment Option Shares in exchange for restricted shares of Common Stock of the Company (the “Restricted Option Shares”); provided, however, that the Restricted Option Shares will be subject to a repurchase right (the “Repurchase Right”) in favor of the Company that lapses in accordance with the schedule described above.  Upon termination of your employment, the Company may exercise its Repurchase Right with respect to any or all Restricted Option Shares for which the Repurchase Right has not lapsed at a price equal to the exercise price per Employment Option.

(d)Accelerated Vesting.

(i)All unvested Equity Awards described in this Section 4 (collectively, the “Equity Awards”) shall become one hundred percent (100%) vested upon the consummation of a Change of Control (as defined in the Plan) that occurs at any time prior to the date that the Company becomes a publicly reporting company.  

(ii)After such time as the Company becomes a publicly reporting company,  in the event that your employment is terminated without Cause (as defined in the Plan) or you terminate your employment for Good Reason (as defined in Section 11(c)), in either 

case at any time beginning on the date that is 90 days prior to the effective date of a Change of Control (as defined in the Plan) and ending on the date that is 12 months following the Change of Control (or any time after the Outside Date, if for Good Reason), then (A) all unvested Equity Awards shall immediately vest in full, and (B) all Employment Options will remain exercisable for a period of 90 calendar days following the date of such termination, after which time any unexercised Employment Options shall expire; provided, however, that no such Employment Option shall be exercisable after the expiration of its maximum term.

(iii)In order to give effect to Sections 4(d)(i) and (ii) above, notwithstanding anything to the contrary set forth in any agreement or any equity plan governing an equity award regarding immediate forfeiture of unvested shares upon termination of service or the duration of post-termination of service exercise periods, following any termination of your employment, none of your equity incentive awards shall terminate with respect to any vested or unvested portion subject to such equity award before 90 days following such termination.

5.Expenses.  The Company will reimburse you for all normal, usual and necessary expenses incurred in furtherance of the business and affairs of the Company upon timely receipt by the Company of appropriate vouchers or other proof of your expenditures and otherwise in accordance with any expense reimbursement and approval policy as may from time to time be adopted by the Company.
6.Benefits.  As a regular full-time employee, you shall be entitled to participate in the employee benefits made available to senior executives of the Company, in accordance with the terms of such benefits plans and programs.  Details on each plan and program will be provided at the time of hire.  The Company, in its sole discretion, has the right to amend or terminate any benefit plan or program at any time and without prior notice.  Your health benefits will be effective on the effective date of your hire if you timely enroll when you commence employment with Kronos. 
7.Paid Time Off.  Consistent with the Company’s Time Off Policy, during each year of your employment you shall not accrue vacation benefits but are entitled to an indeterminate amount of personal time off subject to approval from your supervisor and as operational conditions permit. Under the Company’s policy, you will still be responsible for meeting the expectations and requirements of your position including timely and satisfactorily completing all work assignments while taking time off.  This may include being required to respond to emails, telephone calls, mobile messages and other forms of communication. For purposes of the Company’s policy, this personal time off is in addition to company recognized holidays or sick leave. You will accrue sick leave consistent with applicable law. Sick leave may be used for yourself or a family member for the diagnosis, care or treatment of an existing health condition or preventive care, or specified purposes set forth in the Company’s policy if you are a victim of domestic violence, sexual assault, or stalking. Notwithstanding the foregoing, you shall not be entitled to take more than two consecutive weeks of time off without the prior written consent of the Company.   

8.Representations and Warranties.  You hereby represent and warrant as follows:

i.By accepting the Company’s offer of employment, you represent that you have no agreements, relationships, or commitments with any other person or entity that conflict with your obligations to the Company. 

ii.You have the full right, power and legal capacity to enter and deliver this Agreement and to perform your duties and other obligations hereunder.  This Agreement constitutes the 

legal, valid and binding obligation of the parties, enforceable against each in accordance with its terms.  No approvals or consents of any persons or entities are required for you to execute and deliver this Agreement or perform your duties and other obligations hereunder.

iii.You represent and warrant to the Company that you have not brought and shall not bring with you to the Company, or use in the performance of your duties, any materials or documents of any former employer that are not generally available to the public, unless you have obtained written authorization from the former employer for their possession and use and provided the Company with a copy thereof.

9.Conditions to Employment.  This offer of employment is contingent upon, and your employment shall be subject to:

(a)execution of the Company’s form of Proprietary Information and Invention Assignment Agreement attached hereto as Exhibit B, which prohibits unauthorized use or disclosure of the Company’s proprietary information;

(b)completion of a background examination to the reasonable satisfaction of the Company; and

(c)satisfying the requirements of the Immigration Control and Reform Act, which may be accomplished by showing your proof of right to work in the U.S. within three days of commencing employment (see http://www.uscis.gov/i-9 for a list of acceptable proof, such as (i) an original driver’s license and social security card, or (ii) a passport).

(d)Notwithstanding the foregoing, this offer may be withdrawn by the Company at any time prior to its execution by the Company.

10.Employment-at-will and Termination.  Your employment shall be at-will.  Accordingly, you may terminate your employment with the Company at any time and for any reason whatsoever, without or without advance notice, simply by notifying the Company in writing.  Similarly, the Company may terminate your employment at any time and for any reason whatsoever, with or without cause or advance notice.  This at-will relationship cannot be changed except in a writing signed by a duly authorized office of the Company and you. The employment terms contained in this Agreement supersede any other agreements and promises made to you by the Company or any representative on its behalf, whether oral, written or implied.

11.Severance.  
(a)In the event that at any time your employment is terminated by the Company without Cause (as defined in the Plan), or by you for Good Reason (as defined below), then: 
(i)the Company shall pay your accrued but unpaid Base Salary through the date of termination, at the rate in effect at the time of termination, accrued but unused vacation, and reimburse you for any unreimbursed business expenses incurred prior to the date of termination;

(ii)the Company shall continue to pay your Base Salary at the rate in effect at the time of termination (without regard to any reduction in Base Salary that served as the basis for a resignation for Good Reason) for a period of 180 days following the date of termination in accordance with the Company’s ordinary payroll practice;

(iii)to the extent permitted by applicable healthcare laws and provided that you make a timely election to continue coverage, the Company shall pay directly to the insurance provider the premium for COBRA continuation coverage for the you and the your dependents, less the amount payable by an active employee for such coverage, for a period of 180 days or until you obtain new employment, whichever comes first (the benefits provided in this Section 11(a)(iii) shall be referred to as the “Continued Benefits”). Notwithstanding the foregoing, in the event that applicable healthcare laws do not permit continuation of coverage, then the Company shall reimburse you for the costs of obtaining coverage in an amount not to exceed the coverage amounts paid or payable by you immediately prior to the date of termination; and

(iv)(A) all unvested Equity Awards and any other Company equity compensation awards you then hold shall immediately vest in full, and (B) all Equity Awards will remain exercisable for a period of 90 calendar days following the date of such termination, after which time the Equity Awards shall expire; provided, however, that no such Equity Award shall be exercisable after the expiration of its maximum term. In order to give effect to the foregoing provision, notwithstanding anything to the contrary set forth in any agreement governing an equity award regarding immediate forfeiture of unvested shares upon termination of service or the duration of post-termination of service exercise periods, following any termination of your employment, none of your equity incentive awards shall terminate with respect to any vested or unvested portion subject to such equity award before 90 days following such termination.
(b)In the event that your employment is terminated by the Company for Cause, or by you other than for Good Reason, then:
(i)the Company shall pay your accrued but unpaid Base Salary through the date of termination, at the rate in effect at the time of termination, accrued but unused vacation, and reimburse you for any unreimbursed business expenses incurred prior to the date of termination;

(ii)you shall not be entitled to receive any payments and Continued Benefits described in this Section 11; and

(iii)the vesting applicable to all Equity Awards granted to you by the Company shall cease immediately and you shall have a period of 90 days to exercise any and all vested Equity Awards, after which time all Equity Awards shall expire; provided, however, that no such Equity Award shall be exercisable after the expiration of its maximum term pursuant to the terms thereof.
(c)For purposes of this Agreement: “Good Reason” shall mean your resignation after one of the following conditions has come into existence (i) any material diminution by the Company of your title, duties, authority or Base Salary (including without limitation any requirement that you report to any person(s) other than the Board of the Company); (ii) a material breach by the Company of any of the provisions contained in this Agreement, which, if capable of being cured, is not cured by the Company within 30 days after written notice thereof by you to the Company; (iii) the relocation of the Company’s principal place of business more than 50 miles from its current location without your consent; or (iv) the occurrence of any date  following the first anniversary of the effective date of a Change of Control (the “Outside Date”) if none of the conditions described in Sections 11(c)(i), (ii) or (iii) above has occurred prior to the Outside Date.

(d)This Section 11 sets forth the only obligations of the Company with respect to the termination of your employment with the Company, and you acknowledges that, upon the termination of your employment, you shall not be entitled to any payments or benefits which are not explicitly provided in this Section 11.  Further, notwithstanding anything to the contrary contained herein, the Company shall have no obligation to pay, and you shall have no right to receive, any compensation, benefits or other consideration provided for in this Section 11 (other than any accrued but unpaid Base Salary through the date of termination and any reimbursement of unreimbursed expenses incurred prior to the date of termination) (the “Payments”) unless you execute a release agreement substantially in the form attached hereto as Exhibit C to the Company (the “Release Agreement”) releasing the Company from any and all liability in connection with your employment or the termination thereof that becomes effective no later than 60 days following your termination (the “Release Deadline”).  Except as required by Section 13, the Payments will commence on the first payroll period following the Release Agreement becoming effective; provided, that (i) if the Payments (or any portion thereof) constitute “deferred compensation” within the meaning of Section 409A (as defined in Section 13) and (ii) the period commencing on the date of termination and ending on the Release Deadline spans two calendar years, then the Payments (or such portion thereof that constitute “deferred compensation”) will commence on the later of the Release Agreement becoming effective and the first payroll date of the Company in the second calendar year.  Any portion of the Payments that is delayed due to the application of the preceding sentence shall be made on the date that the Payments commence.    
(e)The Company shall withhold all applicable federal, state and local taxes and social security and such other amounts as may be required by law from all amounts payable to the you under this Section 11. The provisions of this Section 11 shall survive any termination of this Agreement.
12.No Reliance by You on Promise or Representation Not in this Agreement.  In accepting employment with the Company and signing this Agreement, you agree that you are not relying on any representation, promise or inducement that has been made by the Company or any representative on its behalf that is not explicitly stated in this Agreement.  the Company is not bound by and will not be liable for any representation, promise or inducement that is not explicitly stated forth in this Agreement.

13.Section 409A. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this offer letter that constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively, “Section 409A”) and that are payable in connection with your termination of employment shall not commence unless and until you have also incurred a “separation from service” within the meaning of Section 409A, unless the Company reasonably determines that such amounts may be provided to you without causing you to incur the additional 20% tax under Section 409A. If you are, upon a separation from service, a “specified employee” within the meaning of Section 409A, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the payment of any deferred compensation shall not commence until the earlier to occur of: (i) the date that is six months and one day after your separation from service, or (ii) the date of your death. Any payments that are delayed due to the application of the preceding sentence shall be made on the date that payments commence. For purposes of Section 409A, the right to a series of installment payments under this offer letter shall be treated as a right to a series of separate payments.

14.Governing Law. The terms of this offer letter shall be governed by, and construed and interpreted in accordance with, the laws of the State of California without regard to such State’s principles of conflict of laws, except as provided in Section 1.

15.Arbitration.  To the maximum extent permitted by law, any dispute between the parties, including but not limited to those arising out of, or relating to, this Agreement, shall be exclusively decided by binding arbitration in accordance with the terms of the Mutual Agreement to Arbitrate Claims, which is attached as Exhibit D and incorporated into this Agreement. The Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings pursuant to the Arbitration Agreement. To the extent that the Federal Arbitration Act is inapplicable, the terms of the Arbitration Agreement shall be construed in accordance with California law. 

16.Miscellaneous.

(a)This agreement, and your rights and obligations hereunder, may not be assigned.  The Company may assign its rights, together with its obligations, hereunder in connection with any sale, transfer or other disposition of all or substantially all of its business or assets provided the assignee entity which succeeds to the Company expressly assumes the Company’s obligations hereunder and complies with the terms of this Agreement.
(b)This agreement cannot be amended orally, or by any course of conduct or dealing, but only by a written agreement signed by the parties hereto.
(c)The failure of either party to insist upon the strict performance of any of the terms, conditions and provisions of this agreement shall not be construed as a waiver or relinquishment of future compliance therewith, and such terms, conditions and provisions shall remain in full force and effect.  No waiver of any term or condition of this agreement on the part of either party shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such party.
(d)This agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof, and supersedes all prior agreements, arrangements and understandings, written or oral, relating to the subject matter hereof.  No representation, promise or inducement has been made by either party that is not embodied in this agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement not so set forth.
(e)This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. A portable document format (“.pdf”) copy of this Agreement, including the signature pages, will be deemed an original.

If you wish to accept employment at Kronos Bio, Inc., under the terms described above, please sign and date this letter, and return it to me.

We look forward to your favorable reply and to a productive and enjoyable working relationship.

Very truly yours, 

												
	Kronos Bio, Inc.	Agreed and Accepted:
				
	By:	/s/ Norbert Bischofberger	By:	/s/ Barbara A. Kosacz

	Name:	Norbert Bischofberger, Ph.D.	Name:	Barbara A. Kosacz
	Title:	Chief Executive Officer	Date:	July 15, 2020
	Date:	July 15, 2020EX-10.30

 Exhibit 10.30 

[Certain confidential portions of this exhibit have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K and marked with asterisks. The omitted information is (i) not material and (ii) would likely cause us competitive harm if publicly disclosed.] 

RESTATED SUPPLY AGREEMENT 

BALCHEM CORPORATION / STERIGENICS U.S., LLC., STERIGENICS S. DE R.L. DE C.V., STERIGENICS COSTA RICA S.R.L., STERIGENICS EO CANADA, INC.

 Effective Date: October 6, 2020 
 BALCHEM
CORPORATION acting through its ARC Specialty Products segment, located at 52 Sunrise Park Road, New Hampton, New York 10958 (“Seller”), agrees to sell and each of STERIGENICS U.S., LLC (“Sterigenics U.S.”),
STERIGENICS S. DE R.L. DE C.V. (“Sterigenics Mexico”), STERIGENICS COSTA RICA S.R.L. (“Sterigenics Costa Rica”) and STERIGENICS EO CANADA, INC. (“Sterigenics Canada”) (collectively, Sterigenics
U.S., Sterigenics Mexico, Sterigenics Costa Rica and Sterigenics Canada are referred to as “Buyer” or “Sterigenics”) agrees to purchase for and use by its contract sterilization facilities in its respective territory Product
described in this Agreement at the prices and upon the terms set forth in the Agreement. 
 DEFINITIONS: 

 

	 	A.	 Term: This Agreement will be in effect October 6, 2020 and will continue in effect until
December 31, 2030, unless extended as set forth in Paragraph K. 

  

	 	B.	 Requirements: 

 

	 	1.	 Sterigenics U.S. and Sterigenics Canada - [***] of requirements of ethylene oxide for use by Sterigenics
U.S. and Sterigenics Canada by and at their respective ethylene oxide contract sterilization facilities in the USA and Canada. 

  

	 	2.	 Sterigenics Costa Rica - [***] of requirements of ethylene oxide for use by Sterigenics Costa Rica by
and at its ethylene oxide contract sterilization facilities in Costa Rica, subject to the forecast applicable to Sterigenics Costa Rica in Terms and Conditions, Paragraph D, Volume Estimate. 

 

	 	3.	 Sterigenics Mexico - Seller will provide ethylene oxide, when ordered by Sterigenics Mexico, subject to
the forecast applicable to Sterigenics Mexico in Terms and Conditions, Paragraph D, Volume Estimate. 

  

	 	C.	 Product: Ethylene Oxide. 

 

	 	D.	 Volume Estimate: For planning purposes only. These volume estimates are not a requirement or guarantee:

  

	 	1.	 Sterigenics U.S and Sterigenics Canada- [***] pounds annually. 

	 	2.	 Sterigenics Mexico and Sterigenics Costa Rica will provide Seller with an annual forecast each November to
determine volumes for upcoming calendar year. Sterigenics Mexico and Costa Rica will provide an updated rolling quarterly forecast, which will include four (4) quarters; the upcoming current quarter and the three (3) following quarters.
The current quarter will be based on mutually agreeably lead times. This rolling forecast shall be submitted to Seller thirty (30) days prior to the commencement of the upcoming quarter to be forecasted. 

 

	 	E.	 Specifications: See Schedule A. 

 

	 	F.	 Container(s): 

 

	 	1.	 Sterigenics U.S. and Sterigenics Canada -All containers and
packaging, including, but not limited to, 400-pound UN-1A1 drums, 175-pound cylinders,
0.5-pound DOT 3E 1800 lecture bottles, will fully comply with current and future applicable laws, regulations and rules, including but not limited to U.S. DOT Spec and Transport Canada requirements.

  

	 	2.	 Sterigenics Mexico - All containers and packaging, including, but not limited to, 400-pound UN-1A1 drums, will fully comply with current applicable laws, regulations and rules, including but not limited to U.S. DOT Spec. 

 

	 	3.	 Sterigenics Costa Rica -All containers and packaging, including, but
not limited to, 400-pound UN-1A1 drums, DOT Spec packaging, 0.5-pound DOT 3 E 1800 lecture bottles, will fully comply with
current applicable laws, regulations and rules, including but not limited to U.S. DOT Spec. 

  

	 	4.	 In the event of future changes in applicable laws, regulations or rules requiring changes in the Container(s)
in Costa Rica and Mexico, the Parties agree to discuss jointly in good faith regulatory implications, required changes and cost impacts associated therewith. 

  

	 	G.	 Delivery and Shipment: 

 

	 	1.	 Sterigenics U.S. and Sterigenics Canada - DAP (INCOTERMS 2010) Sterigenics U.S. and Sterigenics Canada
respective facilities, shipped via Seller’s trucks or via common carrier. 

  

	 	2.	 Sterigenics Mexico - DAP (INCOTERMS 2010), Sterigenics Mexico’s Cuautitlan, Mexico facility,
shipped via common carrier. 

  

	 	3.	 Sterigenics Costa Rica- DAP (INCOTERMS 2010), Sterigenics Costa Rica Alajuela, Costa Rica facility,
shipped via ocean container, [***] drums minimum per shipment.) 

  

	 	H.	 Price And Price Adjustments: Schedule B shall remain effective until December 31, 2021. Thereafter,
Schedule C will apply effective on January 1, 2022. 

	 	I.	 Demurrage: Sterigenics U.S. and Sterigenics Canada are each entitled to utilize any of the shipping
Containers for sixty (60) days free of charge from the date of receipt at each of their respective plants until the Containers are received back at Seller’s plant. Sterigenics Mexico and Sterigenics Costa Rica are each entitled to utilize any
of the shipping Containers for one hundred twenty (120) days free of charge from the date of receipt at each of their respective plants until the Containers are received back at Seller’s plant. A demurrage fee of [***] per day per. Container
will be assessed and billed for all days in excess of the respective limit until the return of the Containers to the Seller’s plant. 

  

	 	J.	 Terms of Payment: Net [***] from receipt of invoice, beginning 14 days after the signing of this
Agreement until December 31, 2021. Beginning on January 1, 2022, payment terms shall be Net [***] from receipt of invoice. 

  

	 	K.	 Extension Period(s): This contract will automatically renew for successive one (1) year periods
unless either party notifies the other party in writing eighteen (18) months prior to the then applicable contract expiration date of its desire to terminate this contract as of that expiration date. The pricing provisions set forth in
Paragraph H shall continue to apply to such renewal periods. 

 THIS CONTRACT IS SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS WHICH
ARE SPECIFICALLY INCORPORATED INTO AND MADE A PART OF THIS AGREEMENT. 
 TERMS AND CONDITIONS 

 

	1.	 ACCEPTANCE 

(A) The terms and conditions set forth herein and on the cover page(s) of any particular order(s) or contract to which these Terms and Conditions relate
contain the sole, entire and exclusive agreement between the Seller and the Buyer with respect to the sale and purchase of Product covered by any such order(s) or contract, superseding all prior discussions, proposals, negotiations, representations
and agreements. Any additional or conflicting terms, whether or not material, shall not in any manner, by implication, by waiver, or otherwise, govern the relationship between Seller and Buyer. Any waiver, modification or amendment of these Terms
and Conditions shall only be effective if such waiver, modification or amendment is contained in a written instrument duly executed by or on behalf of Seller and Buyer. Requested Specification changes are subject to express written acceptance by
Seller in its discretion, and to price revisions and to any adjustments deemed necessary by Seller to cover material procured, processed and labor expended in connection with such changes. 

(B) Acceptance of any order by Seller is specifically conditioned upon the terms and conditions set forth herein. No modification hereof shall be effected by
Seller’s receipt of any proposed purchase order containing additional or different terms or conditions. 
  

	2.	 SALE AND PURCHASE LOCATION(S) 

On the terms and conditions set forth herein, Sterigenics U.S. and Sterigenics Canada shall purchase from Seller and Seller shall sell to each
of Sterigenics U.S. and Sterigenics Canada their total present and future Requirements of Product for use by Sterigenics U.S. and Sterigenics Canada at each of their respective contract sterilization facilities in the U.S. and Canada and if any of
Sterigenics U.S.’s and Sterigenics Canada’s contract sterilization operations are hereafter conducted at new or expanded contract sterilization facilities in the U.S. and Canada locations, then the Requirements of Product at such locations
will be supplied by Seller to Sterigenics U.S. and Sterigenics Canada and purchased by Sterigenics U.S. and Sterigenics Canada pursuant hereto. Additionally, on 

 
the terms and conditions set forth herein, Sterigenics Mexico and Sterigenics Costa Rica shall purchase from Seller and Seller shall sell to each of Sterigenics Mexico and Sterigenics Costa Rica
Product as ordered pursuant to the forecasts provided under Paragraph D by Sterigenics Mexico and Sterigenics Costa Rica, respectively. 
  

	3.	 PRICE AND PAYMENT 

Seller will invoice Buyer and Buyer will pay Seller for Product in accordance with the Price of Product and Terms of Payment set forth in Paragraphs
H & J of the Definition section of the Agreement hereto. If Buyer fails to make timely payment in accordance with the terms of this Agreement, or Buyer’s credit becomes impaired, as set forth in paragraph 11 hereof, Seller
reserves the right to: 
  

	 	(a)	 Refuse to supply Product to Buyer under any order unless Buyer pays cash in advance with order and/or makes
payment in full of all outstanding charges; and/or 

  

	 	(b)	 At the discretion of the Seller, assess and collect from Buyer a late charge on any delinquent balance,
computed as follows: 1.0% per month on balances over 45 days; and/or 

  

	 	(c)	 Terminate or suspend this Agreement upon thirty (30) days written notice to Buyer, if Buyer does not
rectify within a forty-five (45) day period. 

 Buyer shall receive no credit or refund for Product which meets the Specifications
set forth in Schedule A which is delivered to Buyer but not used. This does not supersede mechanical defects of Seller’s cylinders. 
  

	4.	 DELIVERY OF PRODUCT: TITLE 

(A) Product shall be delivered by Seller in accordance with the Delivery and Shipment provisions of Paragraph G of the Definition section of the Agreement.
Title and risk of loss shall pass to Buyer F.O.B. Buyer’s facility. Seller’s quantity measurements taken at Seller’s facility shall govern. Except as otherwise provided for hereunder, all drums, cylinders and other containers in which
Product is delivered are and shall remain the property of Seller and are returnable in good condition promptly after being emptied, considering ordinary wear and tear 

(B) Seller will: 
  

	 	(a)	 Excluding supply to Sterigenics Costa Rica and Sterigenics Mexico, upon receipt of reasonable advance notice,
deliver to Buyer’s location quantities of Product as are necessary to satisfy and supply Buyer’s Requirements at such locations, and subject to the provisions of Paragraph 10 of the Terms and Conditions, if Seller is unable to supply
Product as required within sixty (60) days when required, Buyer has the right to obtain Product to satisfy its Requirements from another source for that particular order only, subject to the terms of Paragraph 9C. Should Seller fail to supply
Product as required to the same location on more than two (2) occasions in the same calendar year, the adversely affected Buyer shall have the right to terminate this Agreement without recourse by or liability to the Seller, subject to the
provisions of Paragraph 10 of the Terms and Conditions. 

 (C) Buyer will: 
  

	 	(a)	 Monitor the inventory of Product at Buyer’s location and regularly advise Seller of the level thereof at
each such location. 

  

	 	(b)	 Reimburse Seller upon Seller’s request, reasonable additional costs incurred if, during Product
deliveries, Seller experiences frequent delays within Buyer’s control and not arising out of Seller’s acts or omissions. 

  

	 	(c)	 Deliveries may be made twenty-four (24) hours per day, seven (7) days per week.

 (D) Deliveries which may be made during a strike or other labor disturbance affecting Buyer’s plants shall be at
Buyer’s sole risk, and Buyer hereby indemnifies and holds Seller harmless from and against all of the costs, damages, liabilities or claims arising out of or associated with any such delivery which are not regularly incurred by Seller in the
ordinary course of normal deliveries hereunder and which do not arise out of Seller’s negligent acts or omissions. 
  

	5.	 SPECIFICATIONS 

All Product delivered by Seller under this Agreement shall strictly conform to the Specification set forth in Schedule A hereto. 

 

	6.	 PRICE ADJUSTMENT 

See Paragraph H of the Definition section of the Agreement 
  

	7.	 TAXES 

Taxes imposed upon the storage, sale, transportation, delivery, use or consumption of Product, or any other tax, howsoever denominated and measured involving
Product, shall be paid directly by Buyer, or if paid by Seller, shall be invoiced to Buyer as a separate item and paid by Buyer to Seller. 
  

	8.	 SELLER’S WARRANTY 

Seller warrants that the Product delivered to Buyer shall conform to the Specifications set forth on Schedule A hereto and that at the time of delivery Seller
shall have good title to and the right to transfer such Product and that the same shall be delivered free of encumbrances and that the Containers in which the Product will be delivered will be appropriate for containing and shipping the Product and
will be free from defects and leaks. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

  

	9.	 LIMITATION OF LIABILITY 

(A) Buyer acknowledges that there are hazards associated with the use of the Product, that it has received Seller’s current Material Safety Data Sheet,
that it understands such hazards, and that it is the Buyer’s responsibility to warn and protect its employees, independent contractors, invitees, and others exposed to such hazards through Buyer’s storage and use of the Product. 

 (B) Seller’s sole liability and Buyer’s exclusive remedy for the
non-delivery of Product or for the delivery of Product not conforming to the specification (and which Seller does not elect to replace with conforming Product) shall be limited to the purchase price of the
quantity of Product. IN NO CIRCUMSTANCES SHALL SELLER BE LIABLE, WHETHER IN CONTRACT OR TORT OR OTHERWISE, FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF USE, LOSS OF WORK IN PROCESS, DOWN TIME OR LOSS OF PROFITS. 

(C) In the case where Seller is unable to satisfy Requirements or any portion thereof, Seller shall be liable for: (i) the difference between the
purchase price of the Product, if the seller had supplied, and the price actually paid by the Buyer for the Product from another source and (ii) additional shipping and container costs incurred by Buyer. 

(D) Buyer will receive documents from Seller, including Seller’s Material Safety Data Sheet and any revision thereof, containing safety and health
information pertaining to Product, and Buyer will incorporate such information into Buyer’s safety program. This information is available to Buyer. 

(E) Each party hereby agrees to indemnify, defend and hold the other party, its affiliates and their respective employees, officers and directors harmless
from any actions, lawsuits, demands, claims, losses, expenses, costs, including but not limited to reasonable legal fees, and damages, arising out of or in connection with this Agreement, and to the extent arising out of the other party’s
negligence or its breach of its obligations hereunder. 
 (F) IN NO EVENT WHATSOEVER SHALL BUYER BE LIABLE, WHETHER IN CONTRACT OR TORT OR OTHERWISE, FOR
ANY INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS. 
  

	10.	 FORCE MAJEURE 

(A) Neither party hereto shall be considered in default in the performance of its obligations hereunder (other than its obligation to make any payment of money
hereunder), or be liable in damages or otherwise for any failure or delay in performance which is due to strike, lockout, concerted act of worker’s or other industrial disturbance, fire, explosion, flood or other natural catastrophe, civil
disturbance, riot or armed conflict, whether declared or undeclared, acts of terrorism, curtailment, shortage, rationing or allocation of normal sources of supply of labor, materials, transportation, energy, or utilities, machinery or equipment
breakdown, abnormal transportation, energy, or utilities, machinery or equipment breakdown, abnormal demand, lack of transportation or distribution equipment, accident, Act of God, sufferance of or voluntary compliance with acts of government and
government regulations (whether or not valid), embargoes or any other similar or dissimilar cause which is beyond the reasonable control of the party affected. 

(B) Neither party hereto shall be required to make any concession or grant any demand or request to bring to an end any strike or other concerted act of
workers. 
 (C) Either party affected by an event described in this paragraph shall, promptly upon learning of such event and ascertaining that it has or
will affect its performance hereunder, give notice to the other party, stating the nature of the event, its anticipated duration and any action being taken to avoid or minimize its effect. 

 (D) Seller may during any period of Product shortages prorate the Product among its various customers. 

(E) In the event Seller is unable, due to any such cause or otherwise, to fulfill Buyer’s total requirements of Product in addition to payments set forth
in 9(c), Buyer agrees to accept, as full and complete performance by Seller, deliveries in accordance with such allocations as Seller may make. 
 Provided,
however, that Buyer shall have the right to satisfy its unfilled requirements from any available approved supplier without any liability to or recourse by Seller. 
  

	11.	 IMPAIRMENT OF CREDIT 

An impairment of credit is: (i) any action that is brought by or against Buyer under any present or future bankruptcy or insolvency laws seeking any
reorganization, arrangement, readjustment, liquidation, dissolution or similar relief with respect to Buyer, (ii) Buyer makes any assignment for the benefit of creditors, (iii) a receiver is appointed for Buyer, (iv) Buyer shall fail
to make payments in accordance with the terms of this Agreement. 
  

	12.	 PRODUCT CLAIMS 

Buyer shall inspect Product immediately after Product arrives at Buyer’s location(s). Buyer’s failure to give notice to Seller of any claim regarding
Product within thirty (30) days after the arrival of Product at Buyer’s location(s) shall constitute an acceptance by Buyer of such Product and a waiver of Buyer’s claims in respect thereof. 

 

	13.	 ASSIGNMENT 

This Agreement shall be binding upon the parties and their heirs, administrators, executors, acquirers, successors, and assignees of either party. No party
hereto may assign this Agreement without the written consent of the other party, which shall not be unreasonably withheld, except to an affiliate of a party or in the case of a merger or sale of all or substantially all of its stock or assets of the
business to which this Agreement relates. 
  

	14.	 NOTICE 

Any notices, unless otherwise provided herein, will be in writing or facsimile provided that a return facsimile is received confirming the receipt of said
facsimile. Any notice by letter under this Agreement will be deemed given on the date such correspondence is postmarked. 
  

	15.	 APPLICABLE LAW 

This Agreement is to be interpreted in accordance with the laws of the State of New York as in effect for agreements made and performed in New York. Seller
assumes full liability and responsibility for compliance with Federal (including EPA, FIFRA), State, Municipal and local 

 
laws, ordinances and regulations prior to unloading of Product at Buyer’s site. Buyer assumes full liability and responsibility for compliance with Federal (including, EPA, FIFRA), State,
Municipal and local laws, ordinances and regulations governing the use, unloading, discharge, storage, and handling of product supplied by Seller under this Agreement. 
  

	16.	 CONFIDENTIALITY 

Each Party hereby agrees to keep information learned, discovered or disclosed by the other Party during the term of this Agreement and for a period of five
(5) years after its termination, confidential and shall not disclose to any third party or use any of the information for any purpose other than in connection with this Agreement. Such confidential information shall be revealed to only those
directors, officers and employees of the receiving party who have a need to know the information in order to engage in the transactions contemplated by this Agreement and who have agreed to be bound by the terms hereof. Upon termination of this
Agreement, each Party shall promptly return to the other Party all materials, in any tangible or intangible form (including, without limitation, electronic media) in its possession or control, which contains any confidential information. 

 

	17.	 PRIOR AGREEMENT 

This Agreement supersedes any prior agreement or agreements between Buyer and Seller for delivery of Product to Buyer’s Location(s). 

 

	18.	 INSURANCE 

Buyer and Seller agree to maintain sufficient insurance to cover their potential liabilities hereunder, but in no event shall its commercial general liability
insurance policies be written to include per occurrence limits of liability less than $2,000,000. Buyer’s applicable commercial general liability insurance policies shall name Seller as an additional insured and Seller’s applicable
commercial general liability insurance policies shall name Buyer as an additionally insured. Buyer and Seller shall provide a certificate evidencing such insurance, acceptable to the other, upon request. 

 

	19.	 ENTIRE AGREEMENT 

The entire Agreement is contained herein and in the Schedule(s) hereto. No modification or waiver of this Agreement shall bind Seller or Buyer unless expressly
set forth in writing and signed and accepted by an authorized representative of Seller and Buyer. 
  

	20.	 WAIVER AND RELEASE 

Seller hereby waives and releases any and all claims it may have against Sterigenics International, Buyer and their successors for failure to satisfy any and
all Mexico volume requirements prior to January 1, 2014. 
  

	21.	 COUNTERPARTS. 

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the
same agreement. A signed copy of this Agreement delivered by e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. 

	22.	 ACKNOWLEDGEMENT 

Buyer and Seller hereby acknowledge that this Agreement restates and replaces in its entirety that certain Supply Agreement, dated as of January 1, 2010,
and as amended on June 1, 2011, November 1, 2012, September 25, 2013 and August 31, 2020. 
 IN WITNESS WHEREOF,
the respective parties hereunto are legally empowered to enter into this Agreement in accordance with their individual company’s policies and/or by-laws and so set their signatures the day and year of
acceptance. 
  

			
	 STERIGENICS U.S., LLC
	  	BALCHEM CORPORATION
		
	 By: /s/ Michael P. Rutz
	  	 By: /s/ Theodore L. Harris

	 Name: Michael P. Rutz
	  	 Name: Theodore L. Harris

	 Date: October 6, 2020
	  	 Date: October 8, 2020

		
	 STERIGENICS EO CANADA, INC.
	  	STERIGENICS S. DE R.L. DE C.V.
		
	 By: /s/ Philip W. Macnabb
	  	 By: /s/ Philip W. Macnabb

	 Name: Philip W. Macnabb
	  	 Name: Philip W. Macnabb

	 Date: October 6, 2020
	  	 Date: October 6, 2020

		
	 STERIGENICS COSTA RICA S.R.L.
	  	
		
	 By: /s/ Philip W. Macnabb
	  	
	 Name: Philip W. Macnabb
	  	
	 Date: October 6, 2020

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