Document:

DISTRIBUTORSHIP AGREEMENT

 

BY AND BETWEEN

 

ROCKY
MOUNTAIN HIGH BRANDS, INC.

 

("COMPANY")

AND

CJC LIVE MEDIA

("DISTRIBUTOR")

 

    	 		 

    	 

    

 

DISTRIBUTORSHIP
AGREEMENT

 

THIS DISTRIBUTORSHIP
AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into by and between Rocky Mountain High Brands,
Inc., a Nevada corporation, located at 9101 LBJ Freeway, Suite 200, Dallas, TX 75243
(the "Company"), and CJC Live Media, located at 3430 E. Flamingo Rd., Suite 100, Las Vegas NV 89121 (the "Distributor'').

 

W IT N E S S E T H:

 

WHEREAS, the Company is in the business
of producing, canning, bottling, marketing and selling beverages and CBD products;

 

WHEREAS, the Company holds
certain property rights, including, but not limited
to, rights to trade names, trademarks, service marks, logos, formulas, patents
and copyrights (hereafter referred to collectively as the "Trademarks"); and

 

WHEREAS, the Company and Distributor desire
to enter into a distributorship agreement for the marketing, selling and distributing of certain Company products packaged in various
containers under the Trademarks within the Territory hereinafter described; and

 

NOW THEREFORE, for and in
consideration of the mutual agreements, covenants and obligations contained herein, and the performance thereof, the parties,
intending to be legally bound, agree as
follows:

 

I. 

RIGHT TO SELL WITHIN THE TERRITORY

 

1.1        
Grant of Right to Distributor. The Company grants to Distributor the exclusive right,
subject to Section 1.3 hereof, in the Territory described in
and attached hereto as Schedule "A" (the "Territory"), to sell those products in
the containers listed and described in Schedule "B" hereto (the "Products"),
it being understood and agreed that Distributor will be the only multi-level marketing business with which Company will contract
.

 

1.2        
Acceptance of Right to Distribute. Distributor hereby accepts the exclusive
right to sell the Products within the Territory and agrees to exercise such rights in accordance
with the terms of this Agreement. Distributor further agrees that it will use its best efforts to solicit, promote, increase
or cause to be increased the sales of the Products in the Territory. 

 

1.3        
Exclusivity of Products. Distributor agrees that in
order for this Agreement to become and remain effective, Distributor will not market, promote, sell or otherwise distribute
in any manner whatsoever, any hemp-infused or
CBD beverages or other CBD products related thereto, other than those of the
Company. 

 

    	 	2	 

    	 

    

II.

TRADEMARKS

2.1       Ownership
of Trademarks and Use Thereof by Distributor. Distributor acknowledges the Company's exclusive right, title and interest
in and to the Trademarks. Distributor is only authorized to use point of sale (POS)
items, banners, artwork, wearables and any other materials of any nature whatsoever
containing, displaying or utilizing any of the Company's Trademarks, images or graphic
artwork which are delivered by the Company to Distributor, at Distributor's cost. Distributor shall not create, develop, market
or sell any of these items on their own without written permission from the Company.

 

2.2        
Defense of Licensed Rights and Trademarks. Distributor agrees to timely
notify the Company of any claim or action, or threatened claim or action, for infringement
or alleged infringement of any Trademarks, patents or trade secrets made against it or
the Company due to its exercise of any rights granted under this Agreement or activities of the Company undertaken in
support of Distributor in the Territory. Distributor agrees to cooperate fully with the Company in any Trademark or patent
infringement action by or against the Company.

 

2.3        
Cessation of Use of Trademarks. Upon termination of this Agreement, Distributor
shall immediately cease all use whatsoever of the Trademarks and shall not thereafter use the Trademarks or adopt any other designation
similar to or which is likely to be confused with the Trademarks.

 

2.4        
Compliance with Laws. Distributor shall comply with all applicable laws,
regulations and ordinances pertaining to trademarks, at all times when using the Trademarks.

 

III.

ADVERTISING

 

3.1        
Substance of Advertising. In its
advertising, Distributor shall represent that it has the Products available for sale along with the other items
and services that it offers, provided that it does not represent that it is
the agent or representative of the Company. Distributor may display the Trademarks on its
trucks or other equipment, the clothing worn by its employees, agents or representatives, and on any of its other property,
but only consistent with 2.1 above. Any requests for variations of colors and graphics
used by Distributor depicting the Trademarks or other intellectual property of the Company must be consistent with the styles and
formats specified by the Company and must be approved by the Company in writing prior to use by Distributor.

 

3.2        
Advertising Requirements/Restrictions. Distributor must have written
Company approval all of its advertising, sales, marketing and promotional material
in which any of the Products are mentioned. Distributors utilizing any of the Company Trademarks, must use the appropriate trademark
notices, copyright notices and trademark designations. Distributor shall maintain a prominent "Website" advertisement
and listing of the Products offered by it. The content of this website shall be subject
to review and approval by the Company.

 

    	 	3	 

    	 

    

 

3.3        
Approval. Distributor agrees that all advertising and sales and promotional materials
(hereinafter collectively referred to as "Advertising") in which any of
the Products are mentioned and/or any of the Trademarks are used shall be subject to the prior written approval of the Company,
said approval not to be unreasonably withheld.

 

3.4        
 Sales and Service Telephone Numbers. Distributor shall use and publicize
to its customers the Distributor owned telephone number anywhere Distributor's customer sales and service telephone numbers
are listed.

 

3.5       Websites.
Distributor may utilize any information contained on the Company's proprietary Internet websites.

 

IV. 

PRICING AND DELIVERY OF THE
PRODUCTS

 

4.1        Supply
of Products; Pricing. The Company will supply Distributor with the Products at the prices and on the payment terms listed on
Schedule "B" or as otherwise may be mutually agreed between the Company and Distributor in
writing. The Company may increase such prices upon sixty (60) days written
notice to Distributor. The Company will use its commercially reasonable, good faith efforts to supply the Products in
the quantities requested by Distributor and as promptly as commercially and reasonably practicable after an order is received
from Distributor.

 

4.2       Ordering
Procedures. Distributor shall submit to the Company firm purchase orders in accordance
with Schedule "B" in advance of the delivery dates specified. A purchase
order may be submitted and accepted in writing, by fax or by e-mail. All purchase
orders shall specify the quantity and type of Product, the requested delivery date, the delivery point(s), and any other special
instructions with regard to shipping, packaging or delivery. All purchase orders received by the Company shall constitute Distributor's
binding commitment to purchase the quantity and type of Product set forth therein
at the purchase price then in effect on the date the Company receives the purchase
order.

 

4.3       Delivery.
The Company will ship Product from any one of the Company's designated production facilities or warehouses. The Distributor agrees
to reimburse the Company for all packing, handling and shipping costs incurred to ship product to Distributor’s designated
customer or warehouse.

 

For business to business sales, title to
the Products and risk of loss shall pass to the Distributor upon shipment from the
Company's production facility or warehouse.

 

    	 	4	 

    	 

    

For direct to consumer sales, the Company
will produce and store Product for the Distributor based upon prepaid production orders received from the Distributor. Title to
the Products and risk of loss shall pass to the Distributor upon completion of production. At the request of the Distributor, the
Company agrees to segregate and store the Distributor’s finished Product until which time the Distributor notifies the Company
to ship the Product to a consumer.

 

The Company is also available to provide
customer fulfillment services to the Distributor. Such services, along with the related costs, would be provided for in a separate
agreement between the Company and the Distributor.

 

4.4       Inspection
of Products. Distributor will only be required to pay for the Products which are provided to Distributor free of defects at
the time of pick up at Company's warehouse. Representatives of Distributor shall promptly
and immediately inspect all containers for damage and shall not accept any containers
that do not pass that inspection. The Company will either not charge Distributor for,
or shall provide a credit to Distributor for, any damaged containers Distributor receives from the Company and which Distributor
discovers to be damaged during its prompt inspection
of such containers upon their receipt by Distributor. The Company shall not be responsible for, and Distributor shall indemnify,
defend and hold the Company wholly harmless from, any damages, loss, claim, liability
or expense of any customer of Distributor caused, in whole or in
part, by a damaged container. The Products will be deemed received free of defects
unless (i) any patent defects in the Products are noted on the delivery receipt at
the time of delivery to Distributor and immediate written notice thereof is provided
to the Company, or (ii) the Company is notified
in writing or in any manner acceptable to the Company within thirty (30) days
after delivery of any of the Products containing latent defects. The Company will
not be responsible for damages occurring during shipment to the Distributor at Distributor's warehouse or during delivery by Distributor,
at its customers' premises, during return from the Customer to Distributor, or during
the return from Distributor to the Company.

 

4.5       Price
Levels. The Company may from time to time suggest to Distributor the prices at
which Products might be sold by Distributor to its customers. Such suggested retails are advisory only and non-binding on Distributor,
and both the Company and Distributor acknowledge and agree that Distributor has sole, complete and absolute discretion to establish
and maintain the prices at which it sells the Products to its customers. Distributor
acknowledges its obligations to maximize its sales and selling efforts in
the Territory as provided in Section 1.2 of this Agreement and further acknowledges that by setting its prices so as to
be no longer competitive in the Territory, Distributor may thereby breach the terms of this Agreement.

 

4.6       Force
Majeure. The failure by either Party to perform its obligations hereunder shall
be completely excused, without liability to either Party, to the extent that such failure to perform results directly or indirectly
from "acts of God" (including flood, fire or natural casualties); strikes, slowdowns or other labor disputes or
shortages; civil unrest or sabotage; shortages of materials, transportation or supplies;
direct or indirect acts, orders or regulations of any governmental body; or any other
causes beyond the reasonable control of the Party.

 

4.7       Reporting.
At reasonable intervals, not less frequently
than quarterly, Distributor will provide to the Company information regarding Products sold, promotional activities or other information
reasonably requested by the Company.

 

    	 	5	 

    	 

    

V.

TAXES AND
EXPENSES

 

5.1       
Expenses, Charges, Fees and Taxes. Distributor will pay and discharge at its own expense any and all expenses, charges,
fees and taxes arising out of or incidental to the carrying on of its business, including,
without limiting the generality of the foregoing, all worker's compensation, unemployment insurance
and social security taxes, sales, use, income, business and franchise taxes levied or
assessed with respect to its business and/or employees, and Distributor will indemnify, defend and save harmless the Company against
any and all claims for such expenses, charges, fees and taxes.

 

VI.

INSURANCE, WARRANTIES AND INDEMNIFICATION

 

6.1       Duty
to Defend, Indemnify and Hold Harmless. Distributor agrees to indemnify, defend and hold
harmless the Company, its officers, employees, agents and representatives from and
against any and all claims, causes of action, damages, claims for damages, liability, loss,
cost or expense, including reasonable attorneys' fees and expenses of litigation,
arising out of or in any way related to performance of this Agreement by Distributor, except claims
arising from the sole gross negligence of the Company.

 

Without limiting
the foregoing, Distributor agrees to indemnify, defend and hold harmless the
Company, its officers, agents, employees and representatives from any and all such
claims, including but not limited to claims
for property damage, bodily injury, loss of consortium, emotional distress or
death, whether sustained or alleged to have been sustained by Distributor's employees, the Company's employees or any other person
or entity, and including but not limited to
claims, injuries or damages caused or alleged to be caused in
whole or in part by the negligence, gross negligence or willful act or omission
of Distributor or anyone for whose acts Distributor may be liable or legally responsible.
Distributor also agrees to indemnify, defend and hold harmless the Company, its officers,
employees, agents and representatives from any and all such claims, whether or not
they arise from or are alleged to be caused in part by the negligence or gross negligence of the Company, its agents, officers,
employees, or representatives. However, Distributor shall not be obligated to indemnify
the Company against any claim arising from the sole gross negligence of the Company.

 

The foregoing indemnity,
defense and hold harmless obligations shall apply
to all such claims, losses or liabilities, whether such claims arise from Products
acquired by Distributor from the Company prior to the execution of this Agreement or subsequent thereto.

 

    	 	6	 

    	 

    

6.2       Insurance
Coverage. Distributor further agrees to procure and maintain, at its sole cost
and expense from an insurance carrier reasonably acceptable to the Company, Comprehensive General Liability Insurance
and Automobile Liability Insurance, all in conformance with the requirements
of this Agreement.

The Company shall be named as an additional
insured on each of the above-listed policies. Distributor shall provide the Company
certificates of insurance evidencing the existence and maintenance of each of these
policies and the fact that the Company is afforded insurance coverage as an additional
insured under each of the policies specified above.

 

Distributor's failure to provide said certificates
of insurance, and the Company's failure to insist
that such certificates be furnished to it, shall not relieve Distributor of its obligation to procure insurance as required
herein.

 

The insurance required by this Section
shall specifically include and provide
contractual liability insurance covering Distributor's obligations under the indemnity
provisions of this Agreement as set forth in Section 8.1
above. Said insurance shall provide primary coverage to the Company, and any
other insurance which may be available to the Company for any claim, loss or liability encompassed
by this Agreement shall be excess over the insurance required by this
Section.

 

Distributor's Comprehensive General Liability
and Automobile Liability Insurance shall be written with combined single limits of
liability not less than $1,000,000.00.

All insurance
policies shall contain a provision that the coverages afforded thereunder shall not be canceled or not renewed, nor restrictive
modifications added, until at least thirty (30) days after prior written notice has
been given the Company.

 

In the
event Distributor fails to obtain or maintain any insurance coverage required under this Agreement, the Company may at its option
purchase such coverage and charge the expense thereof to Distributor or terminate this Agreement.

 

6.3       Limitations
of Distributor's Remedies. Distributor's sole and exclusive remedy against the Company for defective Products or deficient
services, as the case may be, shall be, at the option of the Company, the replacement thereof or a credit to Distributor's account
for the cost thereof. Distributor's remedy for any breach by the Company of this Agreement or arising under or in connection with
this Agreement or for any action taken or not taken by the Company in connection herewith
or conduct relating thereto, under contract, tort or any other legal theory, shall not include, under any circumstance, any special,
indirect, exemplary, punitive, incidental or consequential damages nor lost profits,
lost revenues or lost opportunity costs.

 

    	 	7	 

    	 

    

VII. 

DEFAULT

 

7.1        
Events of Default. Distributor shall be deemed to be in default of the terms of this Agreement
if any one of the following events ("Events of Default”) occur: 

 

		(a)	Distributor attempts to dispose, assign or sub-license the rights,
privileges and obligations created by this Agreement;

		(b)	Distributor violates any of the terms and conditions of this Agreement;

		(c)	Majority ownership of Distributor
changes;

		(d)	Distributor shall file a voluntary petition in
bankruptcy or take the benefit of any insolvency act or be dissolved or adjudicated
bankrupt or if a receiver shall be appointed
for Distributor's business or its assets and the appointment of such receiver is not vacated within thirty (30) days after such
appointment, or if Distributor shall make an assignment for the benefit of its creditors, or if the interest of Distributor passes
by operation of law to any person or entity other than Distributor;

		(e)	Distributor becomes insolvent,
regardless of how said insolvency may be evidenced;

		(f)	Distributor fails to pay the Company for the Products as
defined in Schedule “B”;

		(g)	Distributor fails to purchase Products within
30 business days of the signing of this Agreement, Company may immediately Terminate this Agreement with no cure period
needed; or

 

		(h)	Distributor fails to achieve Volume Objectives.

 

7.2        
Remedies. Upon the occurrence of an Event of Default, the Company may give
written notice to Distributor demanding that the condition of default be cured within ten (10) calendar days and, if
not so cured, the Company, in addition to any other rights or remedies it may
have, may do any one or more of the following:

 

		(a)	Commence a collection action to recover all sums of money due, reserving
the right to recover for such other sums of money which may become due under this Agreement or otherwise;

		(b)	Commence an action to specifically enforce its rights under this Agreement; or

		(c)	Immediately terminate this Agreement.

 

7.3        
Remedies Cumulative. All rights and remedies granted under this Agreement shall be
cumulative, and resort by the Company to any one remedy provided for hereunder shall not exclude or prevent the Company from pursuing
any other rights and remedies provided under this Agreement or by law.

 

7.4        
Attorneys' Fees. If the Company or Distributor brings an action to enforce or assert
any right granted pursuant to this Agreement and is successful in such action, the
unsuccessful party shall pay all reasonable costs and expenses, including reasonable attorneys' fees, incurred by the successful
party in exercising its rights and remedies hereunder.

 

    	 	8	 

    	 

    

 

VIII.

TERM

 

8.1         
Term. This Agreement shall commence on the date of its
execution and shall continue in full force and effect for a period of one (1) year thereafter, (the "Primary Term"),
unless sooner canceled or terminated as provided in this Agreement. At the end of
the Primary Term, and at the end of each year thereafter (each such year being a "Renewal Term"), this Agreement shall
be automatically renewed for a successive one-year period provided the Distributor
has complied with all terms and conditions of this Agreement. Notwithstanding anything contained herein to the contrary, either
party may terminate this Agreement at any time by written notice to the other party
provided a minimum of thirty (30) days' notice, or earlier if specifically stated herein.

 

IX.

ASSIGNMENT

 

9.1        
Assignment. This Agreement is personal as to the Company and Distributor. The rights, duties and obligations pursuant to
this Agreement cannot be transferred, assigned, pledged, made subject to a security interest, or otherwise disposed of by either
the Company or Distributor in whole or in part.

 

X.

MISCELLANEOUS

 

10.1      
Purchase Orders Invoices. Company requires payment in full in
advance of shipment, with the Distributor being responsible for freight costs and liability at Company’s shipping
dock.

 

10.2     
Notice. All notices, consents, waivers, and other communications under this Agreement
must be in writing and will be deemed to have been duly given (a) when delivered by
hand (with written confirmation of receipt), (b) three (3) days after being deposited
in the mails, if sent by certified mail, with return receipt requested, (c) upon confirmed
receipt, if sent by facsimile transmission during normal business hours of the receiving party on a business day, (d) one (1) day
after sending, if sent by a nationally recognized overnight delivery service (receipt
requested) specifying next day delivery, or (e) same day if sent via e-mail, in each
case to the appropriate addresses or telecopy numbers set forth on the signature page hereto (or to such other addresses or telecopy
number as a party may designate by notice to the other parties).

 

10.3     
No Partnership, Joint Venture, Franchise, Employer/Employee Relationship. It is understood
and agreed that Distributor is an independent contractor, and this Agreement and the relationship created hereby shall not be considered
to be a partnership, joint venture, franchise, or an employer/employee relationship,
and neither the Company nor Distributor shall have the right or authority to represent the other in any capacity or to transact
any business or incur any obligations, contractual or otherwise for, in
the name of, or on behalf of the other, unless otherwise authorized to do so
in writing. The relationship between the Company and Distributor shall be that of supplier and purchaser.

 

10.4     
Authority to Enter into Agreement. The Company and Distributor affirm that they are
validly constituted corporate entities with full right, power and authority to enter into
this Agreement and to perform their respective obligations hereunder.

 

    	 	9	 

    	 

    

10.5     
Waivers. No failure or delay on the part of the Company or Distributor to exercise
any right, power or remedy shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy under this Agreement. No amendment, modification or waiver
of any provision of this Agreement shall be effective unless the same shall be in
writing signed by the Company and Distributor.

 

10.6     
Governing Law and Jurisdiction. This Agreement shall be governed and interpreted in
accordance with the laws of the State of Texas. Distributor hereby consents
to service of process in, and to the sole and exclusive jurisdiction of the state
or federal courts of Dallas County, Texas with respect to any disputes of any nature whatsoever which may arise between the Company
and Distributor relating to the rights and obligations under this Agreement.

 

10.7     
Confidentiality. During the Primary Term and any Renewal Term and for the three (3)
year period following the termination hereof for any reason, the parties hereto shall
keep the terms and conditions of this Agreement, the transactions contemplated hereby, and either party's records, books, data
and other confidential information concerning the Products, either party's accounts,
employees, client development (including customer and prospect lists), sales activities and procedures, promotional and marketing
techniques, pricing, marketing or business plans and strategies, financing, development and expansion plans
and credit and financial data concerning customers and suppliers and all other business information involving
either party (all collectively, the "Confidential Information") strictly
confidential, and neither the Company nor Distributor will make, or cause or permit
to be made, any disclosure of any such Confidential Information to any person (it being
understood, however, that in any event such Confidential Information may be disclosed
on a confidential basis to the parties' respective employees and professional advisers who have a need to know such information).

 

10.8     
Entire Agreement. This Agreement, which incorporates herein by reference Schedules
"A" and "B", constitutes the entire, complete and exclusive statement of the terms of the agreement between
the parties with respect to the subject matter hereof and supersedes and cancels any prior agreements, understandings, covenants,
promises, assurances, course of dealing or performance, representations, warranties, or communications, whether oral or written,
between the parties hereto. No covenant, term, provision, representation or agreement not expressly contained herein shall be implied
as a matter of law, interpretation, coarse of performance or conduct of the
parties. Neither this Agreement nor any provision hereof may be amended, waived or modified except by written instrument
signed after the date hereof by all parties hereto and expressly stating therein that such instrument
is intended as an amendment, modification or waiver hereof.

 

10.9 Severability.
If any terms or provisions of this Agreement are deemed to be invalid or unenforceable,
such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof.

 

10.10       Benefited
Parties. This Agreement shall be binding upon and inure to the benefit of any permitted purchasers, successors or assigns of
the Company and Distributor.

 

10.11 Assignment
to RMHB Sub. Each Party hereby agrees that RMHB may, at any time following the Effective Date, assign all of its rights and
obligations under this Agreement to a wholly-owned subsidiary of RMHB.

 

    	 	10	 

    	 

    

IN WITNESS WHEREOF, this Agreement
has been executed on this 31st day of October, 2018.

 

THE COMPANY

 

Rocky Mountain High Brands, Inc.

 

By: /s/ Michael Welch

Print Name: Michael Welch

Its: President/CEO

 

Address:

 

Rocky Mountain High Brands, Inc.

9101 LBJ Freeway, Suite 200

Dallas, TX 75243

972-833-1585

michael@rockymountainhighbrands.com

 

 

DISTRIBUTOR

 

 

CJC
Live Media

 

By: /s/ John Rustin

Print Name: John Rustin

Its: Founder

 

Address:

 

CJC Live Media

3430 E. Flamingo Road, Suite 100

Las Vegas, NV 89121

(714)815-7187

john@johnwrustin.com

 

    	 	11	 

    	 

    

 

SCHEDULE A

TERRITORY GRANTED

 

The Territory set forth for
this Agreement is the CJC Live Media Multi Network. The Territory further is exclusive
as to all multi-level marketing businesses.

 

    	 	12	 

    	 

    

 

SCHEDULE B

 

PRODUCTS AND PRICES 

 

 

Products and prices as set forth
in a certain email and attachments from David M. Seeberger to John W. Rustin on October 19, 2019.

 

    	 	13cers-ex101_221.htm

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Exhibit 10.1

 

AMENDMENT TO AMENDED AND RESTATED

MANUFACTURING AND SUPPLY AGREEMENT

 

THIS AMENDMENT TO AMENDED AND RESTATED MANUFACTURING AND SUPPLY AGREEMENT (this “2018 Amendment”) is entered into by and between Fresenius Kabi Deutschland GmbH, a company organized under the laws of Germany (together with its affiliates “Fresenius Kabi”), and Cerus Corporation, a company organized under the laws of Delaware (“Cerus”).  Fresenius Kabi and Cerus are sometimes referred to herein as a “Party” and collectively as the “Parties.” This 2018 Amendment shall be effective as of August 10, 2018 (the “Effective Date”).

WHEREAS, Cerus and Fresenius Kabi are parties to that certain Amended and Restated Manufacturing and Supply Agreement dated July 1, 2015 (the “Agreement”); and

WHEREAS, the Parties now wish to amend the Agreement in the manner set forth in this 2018 Amendment.

NOW THEREFORE, in consideration of the premises and covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Fresenius Kabi and Cerus agree as follows: 

1.Defined Terms.  Unless otherwise defined herein, all capitalized terms used in this 2018 Amendment shall have the same meaning as assigned to them in the Agreement.

2.Transfer Price amendment.  The Parties agree to amend the Transfer Price grid contained in Exhibit D-1 of the Agreement as follows:  

[*]  

3.Capacity.   

a.The parties acknowledge that once the [*] is operational and begins to [*], Fresenius Kabi’s capacity limit is [*] annually (based on [*]) until [*] (the “Capacity Constraint”). Cerus agrees that Fresenius Kabi shall not be deemed in breach of this Agreement if Fresenius Kabi is unable to fulfill firm purchase orders in excess of the Capacity Constraint; provided, however, that the Parties will use commercially reasonable efforts to increase the Capacity Constraint to [*] beginning for [*]. 

b.The following restriction on purchase order quantities set forth in Section 2.4 of the Agreement (the “Order Restriction”) shall be waived for [*]:

“With respect to the Sets, the [*] variation for the [*] constituting a firm purchase order shall not be greater than [*] ordered for the applicable Set in the preceding [*] period unless otherwise agreed to by the parties.” 

c.Cerus shall provide to Fresenius Kabi on or prior to [*], a [*] forecast by product code, of which the first [*], will constitute firm purchase orders for Platelet Sets and Plasma Sets (the “Firm Purchase Orders”).  The Parties hereby agree that any Sets ordered pursuant to the Firm Purchase Orders [*] Fresenius Kabi [*] the Firm Purchase 

 

 

Orders [*] in one or more [*].  For the purposes of clarity and avoidance of doubt, Cerus acknowledges that [*] in accordance with accepted Firm Purchase Orders within [*].  Commencing [*], all firm purchase orders shall [*] based on the preceding [*] period unless otherwise agreed to by the Parties.  Further, the Parties agree that, subsequent to [*] shall be subject to [*].  

d.This 2018 Amendment shall not serve as evidence of Cerus’ reasonable requirements for orders under the Agreement, but rather such requirements shall be set forth in accordance with the terms of the Agreement.  Further, unless specifically set forth herein, nothing contained in this 2018 Amendment shall be deemed to obligate Fresenius Kabi to increase its overall supply obligations in future periods.

4.[*]. 

a.Fresenius Kabi shall commence and [*] the purchase and installation of [*] at the Facility [*]. 

b.If the aggregate number of Sets ordered pursuant to Cerus’ firm purchase orders for the [*] period beginning with the first day of [*] below [*], then Cerus will be obligated [*] to [*] via [*] due [*], which amount shall be set forth in [*] to Cerus.

c.In the event that Cerus met the volume requirements set forth in Section 3.b. above as of [*], but the aggregate number of Sets ordered pursuant to Cerus’ firm purchase orders for the [*] period beginning on [*] below [*], then Cerus will be obligated to [*] via [*] due [*], which amount shall be set forth in [*] to Cerus.

5.At Risk Containers.  In order to support increased demand, once sealing validations are completed, Fresenius Kabi shall immediately commence manufacturing bags on the [*] at the Facility, which the Parties hereby acknowledge is prior to Cerus obtaining regulatory approvals thereof (the “At Risk Containers”).  The Parties shall [*] of the At Risk Containers in the event the At Risk Containers [*].  For the avoidance of doubt, nothing in this Section 5 shall obligate the Parties to manufacture Sets using the At Risk Containers unless mutually agreed in writing by the Parties.  The quantity of At Risk Containers to be manufactured will be mutually agreed upon in writing by Cerus and Fresenius Kabi.  

6.Third-Party Component Inventory Management.   The Parties agree to negotiate in good faith [*] Fresenius Kabi with respect to certain third-party sourced components, as required for production of the Sets, that are held in Fresenius Kabi’s inventory storage facility(ies).    

7.Section 9.6 payment acceleration.   Section 9.6 of the Agreement is replaced in its entirety by the following provision:

“Section 9.6.  Milestone Payment.  Cerus shall make a one-time, lump sum payment of €5.5 million to Fresenius Kabi by wire transfer no later than August 1, 2019.”

8.Reaffirmation.  Except as provided herein, the Agreement remains in full force and effect in accordance with its original terms, except as expressly modified hereby.

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

9.Counterparts. This 2018 Amendment may be executed in any number of counterparts with the same effect as if all parties had signed the same document, and all counterparts shall be construed together and shall constitute the same instrument.

 

 

[Signature Page to Follow]

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below.

	
	
Fresenius Kabi Deutschland GmbH

 

By: /s/ Christian Hauer

 

Name:Christian Hauer

 

Title:President, Medical Devices Division, Managing Director

 

	
By: /s/ Dirk Röhner

 

Name:Dirk Röhner

 

Title:CFO, Senior Vice President Finance & HR Medical Devices Division, Managing Director

 

	
Cerus Corporation

 

By: /s/ William M. Greenman

 

Name:William M. Greenman

 

Title:President and CEO

 

 

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

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