Document:

cryx_8k-ex0417.htm

 

    
      

    

    Exhibit 4.1.7

     

    
      AMENDMENT
AGREEMENT

      

      THIS
AMENDMENT AGREEMENT (this “Amendment”) is entered into on
February 1, 2010 (the “Effective Date”) by and among
Cryoport, Inc., a Nevada
corporation (the “Company”), on the one hand,
and Enable Growth Partners LP
(“EGP”), Enable Opportunity Partners LP (“EOP”), Pierce Diversified
Strategy Master Fund LLC, Ena (“Pierce” and, together with EGP
and EOP, the “Enable
Funds”), and BridgePointe Master Fund Ltd. (“BridgePointe,” together with
the Enable Funds, each individually referred to as a “Holder” and collectively as
the “Holders” or the “Investors”), on the other
hand.  Capitalized terms not defined in this Amendment shall have the
meanings ascribed to such terms in each of the Securities Purchase Agreements
(each as defined in documents referred to in the recitals incorporated by
reference below), in each of the Debentures (each as defined in documents
referred to in the recitals incorporated by reference below) and in the January
2010 Amendment Agreement (as defined below).

       

      WHEREAS, the Company and the
Holders are parties to that certain Amendment to Debentures and Warrants,
Agreement and Waiver, dated as of January 12, 2010 (the “January 2010 Amendment Agreement”),
pursuant to which, among other things, BridgePointe and Enable Funds each agreed
to convert a portion of the outstanding principal amount of their respective
Debentures equal to the Required Conversion Amount (as defined below) in
exchange for the Conversion Shares; and

       

      WHEREAS, in order to
facilitate the Company’s ability to consummate the Approved Public Offering, the
Holders wish to modify the formula used to calculate the number of securities,
and the type of securities, to be received by each of BridgePointe and the
Enable Funds upon their respective conversions of the Required Conversion
Amount; and

       

      WHEREAS, the Company and the
Holders now desire to amend the terms of the January 2010 Amendment Agreement as
provided herein.

       

      NOW THEREFORE, in
consideration of the mutual promises and agreements contained herein, and
intending to be legally bound hereby, the undersigned parties hereby agree as
follows:

      

      1. Incorporation of Preliminary
Statements. The recitals set forth above by this reference hereto are
hereby incorporated into the January 2010 Amendment Agreement.

       

      2. Amendment to Section
4.  Section 4 of the January 2010 Amendment Agreement is hereby
deleted in its entirety and replaced with the following new Section
4:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “4.           Conversion and Payment of
Debentures.  Provided that the Approved Public Offering has
closed by March 1, 2010, concurrently with the closing of the Approved Public
Offering, (i) the Enable Funds, collectively, shall convert $1,357,215 in
principal amount of the then outstanding principal amount of its Debentures (the
“Required Conversion
Amount”) in exchange for a number of shares of common stock (“Conversion Shares”) determined
by dividing the Required Conversion Amount by the Common Stock Offering Price
(as defined below) and (ii) BridgePointe shall convert an amount of the then
outstanding principal amount of its Debentures equal to the Required Conversion
Amount in exchange for a number of shares of common stock determined by dividing
the Required Conversion Amount by the Common Stock Offering Price (such shares
received by BridgePointe also referred to as the “Conversion
Shares”).  “Common Stock Offering Price”
means the price obtained by multiplying the offering price for one unit (as
established by the underwriters and set forth on the cover page of the pricing
prospectus for the Approved Public Offering which will be filed with the
Securities and Exchange Commission immediately prior to the commencement of the
Approved Public Offering) by fifteen sixteenths (15/16) (provided, however, that
the Common Stock Offering Price for purposes of converting the Required
Conversion Amount and the exercise price of the Offering Make-Up Warrants (as
defined below) shall not exceed and shall be capped at $1.00 per share on a
pre-Reverse Stock Split adjusted basis). Provided that the Approved Public
Offering has closed by March 1, 2010, within five (5) business days following
the closing of the Approved Public Offering (the “Payment Deadline”) the Company
shall deliver the Conversion Shares to each Holder and shall pay in cash to each
Holder the unconverted portion of the then outstanding principal amount of such
Holder’s Debenture(s) without penalty or premium (such amount for the Enable
Funds and BridgePointe, respectively, the “Payoff
Amount”).  For purposes of clarification, the Payoff Amount for
BridgePointe and the Enable Funds, respectively, as of the date hereof are set
forth in the table below:

       

      
        	
                Investor
      Name

              	
                Outstanding
      

                Principal
      Amount 

                as
      of  02/01/2010

              	
                Required
      

                Conversion
      

                Amount

              	
                "Payoff
      Amount"* 

                (Outstanding
      

                Principal
      Amount 

                as
      of 02/01/10 less 

                Required
      

                Conversion
      

                Amount)

              
	
                BridgePointe
      Master Fund Ltd.

              	
                 $3,066,994.71

              	
                 $1,357,215.00

              	
                 $1,709,779.71

              
	
                Enable
      Funds

              	
                 $2,714,430.00

              	
                 $1,357,215.00

              	
                 $1,357,215.00

              

      

      

       

      * subject
to the subtraction of any outstanding principal amount, other than the Required
Conversion Amount, that is converted after February 1, 2010.

       

      The
Conversion Shares shall be free of restrictive legends and trading restrictions
(other than the lock-up contemplated in Section 7 of the January 2010 Amendment
Agreement, as amended) and shall be delivered electronically and otherwise in
accordance with the terms of the Debentures.  In the event that the
Company’s transfer agent requires the Conversion Shares to be issued with a
restrictive legend, then, at the time of the Company’s delivery of the
Conversion Shares,  the Company’s counsel shall deliver to the
Company’s transfer agent a legal opinion under Rule 144 of the Securities Act of
1933 requesting the removal of such restrictive legend and the Company shall
provide or cause to be provided to the transfer agent any other opinions,
instructions or other items requested by the transfer agent in order for it to
remove any such restrictive legend. Upon each Holder’s receipt of the Conversion
Shares and the Payoff Amount by the Payment Deadline and the satisfaction of all
of the terms and conditions of this Amendment, each Holder acknowledges and
agrees that its Debenture(s) shall be paid in full and the Company shall have no
further obligation thereunder. ”

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3. Insertion of Additional
Section.   The January 2010 Amendment Agreement is hereby
amended by inserting the following as an additional section to the January 2010
Amendment Agreement, to be numbered as Section 5 thereof, with the existing
Section 5 being renumbered as Section 6, and each succeeding section thereafter
being renumbered and all internal section references updated
accordingly.

       

      

       

      “Section
5. Issuance and
Delivery of Offering Make-Up Warrants.  The Company shall issue
and deliver to each of BridgePointe and Enable Funds on or before the Payment
Deadline a warrant (the “Offering Make-Up Warrant”) to
purchase a number of shares of common stock equal to the difference between the
number of Reference Shares (as defined below) and the number of Conversion
Shares.  The exercise price of the Offering Make-up Warrant shall be
equal to the Common Stock Offering Price, provided that the exercise price of
the Offering Make-Up Warrants shall not exceed and shall be capped at $1.00 per
share on a pre-Reverse Stock Split adjusted basis, and the term of exercise of
the Offering Make-Up Warrant shall be five years from the date of closing of the
Approved Public Offering.  The other terms of the Offering Make-Up
Warrants shall be identical to the Warrants (as defined below), as
amended.  For purposes hereof, the Reference Shares shall mean
the number of shares determined by dividing the Required Conversion Amount by
$0.45 per share (as adjusted for the Reverse Stock Split).  For
purposes of clarification, notwithstanding the completion of the Approved Public
Offering and the issuance of the Offering Make-Up Warrants, each Holder shall
retain and shall not be required to forfeit any of the Warrants of the Company
currently owned by such Holder.”

       

      4. Amendment to Section
7.  Section 7 of the January 2010 Amendment Agreement (now
renumbered as Section 8) is hereby deleted in its entirety and replaced with the
following new Section 8:

       

      

      “Section
8.  Adjustment to Warrant
Exercise Price, Deletion of Full-Ratchet Antidilution Protection and Extension
of Term of Warrants.  The Termination Date of each Warrant
(other than the Offering Make-Up Warrant) is hereby extended to January 15,
2015.  Provided that the Approved Public Offering has closed by March
1, 2010, effective upon the close of the Approved Public Offering, (i) the
Exercise Price (as defined in each of the Warrants) of each of the Warrants (as
“Warrants” is defined in the 2007 Securities Purchase Agreement and the May 2008
Securities Purchase Agreement, respectively, but excluding the Offering Make-Up
Warrants) will be decreased to a price (the “Warrant Reset Price”) equal
to $0.40,
subject to adjustment for the Reverse Stock Split or as otherwise provided
therein, without any change in the number of shares of common stock that then
may be purchased thereunder, (ii) Section 3(b) and the last sentence of Section
3(e) of each Warrant (which relate to dilution protection on subsequent equity
sales afforded to the Holders not otherwise available to all other holders of
the Company’s outstanding common stock and to fundamental transactions,
respectively) shall be deleted in their entirety, and (iii) the Termination Date
of each Warrant (other than the Offering Make-Up Warrant) shall be further
extended to the date which is five (5) years following the date of closing of
the Approved Public Offering.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5. Effect on Transaction
Documents. Subject to the amendment
to the January 2010 Amendment Agreement provided herein, all of the terms and
conditions of the Transaction Documents shall continue in full force and effect
after the execution of this Amendment and shall not be in any way changed,
modified or superseded by the terms set forth herein, including but not limited
to, any other obligations the Company may have to the Investors under the
Transaction Documents, provided however that
references to Securities, Debentures, Warrants and Underlying Shares in the
Transaction Documents shall include such securities, as amended hereby and
issued hereunder, and the shares underlying such Securities,
respectively.  Except as expressly set forth herein, this
Amendment shall not be deemed to be a waiver, amendment or modification of any
provisions of the Transaction Documents or of any right, power or remedy of the
Investors, or constitute a waiver of any provision of the Transaction Documents
(except to the extent herein set forth), or any other document, instrument
and/or agreement executed or delivered in connection therewith, in each case
whether arising before or after the date hereof or as a result of performance
hereunder or thereunder.  The Investors reserve all rights, remedies,
powers, or privileges available under the Transaction Documents, at law or
otherwise.  This Amendment shall not constitute a novation or
satisfaction and accord of the Transaction Documents or any other document,
instrument and/or agreement executed or delivered in connection therewith,
including, without limitation, the Security Agreement.

       

      6. Notices. Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be delivered as set forth in the applicable Transaction
Document.

       

      7. Successors and
Assigns. This Amendment shall inure to the benefit of and be binding upon
the successors and permitted assigns of each of the parties and shall inure to
the benefit of the Investors. The Company may not assign (except by merger) its
rights or obligations hereunder without the prior written consent of the
Investors.  The Investors may assign their respective rights hereunder
in the manner and to the Persons as permitted under the applicable Transaction
Document.

       

      8. Execution and
Counterparts. This Amendment may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart.  In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format
data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original
thereof.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      9. Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Amendment shall be determined in
accordance with the provisions of the Transaction Documents.

       

      10.
Severability. If any
term, provision, covenant or restriction of this Amendment is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

       

      11. Headings. The
headings in this Amendment are for convenience only, do not constitute a part of
this Amendment and shall not be deemed to limit or affect any of the provisions
hereof.

       

      12.
Representations and
Warranties; Corporate Authority.  The Company hereby makes the
representations and warranties set forth below to the Holders that as of the
date of its execution of this Amendment:

       

      (a) The
Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by this Amendment and otherwise to
carry out its obligations hereunder and thereunder.  The execution and
delivery of this Amendment by the Company and the consummation by it of the
transactions contemplated hereby have been duly authorized by all necessary
action on the part of such Company and no further action is required by such
Company, its board of directors or its stockholders in connection
therewith.  This Amendment has been duly executed by the Company and,
when delivered in accordance with the terms hereof will constitute the valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable
law.

      

      (b) The
execution, delivery and performance of this Amendment by the Company and the
consummation by the Company of the transactions contemplated hereby do not and
will not: (i) conflict with or violate any provision of the Company’s
certificate or articles of incorporation, bylaws or other organizational or
charter documents, or (ii) conflict with, or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, result
in the creation of any lien upon any of the properties or assets of the Company,
or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any material
agreement, credit facility, debt or other material instrument (evidencing
Company debt or otherwise) or other material understanding to which the Company
is a party or by which any property or asset of the Company is bound or
affected, or (iii) conflict with or result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any
court or governmental authority to which the Company is subject (including
federal and state securities laws and regulations), or by which any property or
asset of the Company is bound or affected.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c) No
consideration has been offered or paid to any person to amend or consent to a
waiver, modification, forbearance or otherwise of any provision of any of the
Transaction Documents.

      

      (d) All of
the Company’s warranties and representations contained in this Amendment shall
survive the execution, delivery and acceptance of this Amendment by the parties
hereto.

      

      13. Amendments and
Waivers.  No provision of this Amendment may be waived or
amended except in a written instrument signed, in the case of an amendment, by
the Company and the Holders or, in the case of a waiver, by the party against
whom enforcement of any such waiver is sought.  No waiver of any
default with respect to any provision, condition or requirement of this
Amendment shall be deemed to be a continuing waiver in the future or a waiver of
any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such
right.

       

      14. Joint
Preparation.  Each of the parties hereto acknowledges that this
Amendment has been prepared jointly by the parties hereto, and shall not be
strictly construed against either party.

       

      15. Amendments Not Effective
Until All Parties Agree.  In addition to any other conditions
provided for herein, the amendments herein shall not be effective unless and
until the Company and all of the Holders shall have agreed to the terms and
conditions hereunder.

       

      16. Disclosure and Filing of 8-K.  Except with
respect to the material terms and conditions of the transactions contemplated by
this Amendment, the Company confirms that neither it nor any other Person acting
on its behalf has provided any of the Investors or their agents or counsel with
any information that it believes constitutes or might constitute material,
nonpublic information. On or before the second (2nd) Trading Day immediately following the date hereof, the
Company shall file a Current Report on Form 8-K, reasonably acceptable to each
Investor disclosing the material terms of the transaction contemplated hereby,
which shall include this Amendment as an attachment thereto.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      17. INDEPENDENT NATURE OF
INVESTORS’ OBLIGATIONS AND RIGHTS.  THE COMPANY HAS ELECTED TO
PROVIDE ALL INVESTORS WITH THE SAME TERMS AND FORM OF THIS AMENDMENT FOR THE
CONVENIENCE OF THE COMPANY AND NOT BECAUSE IT WAS REQUIRED OR REQUESTED TO DO SO
BY THE INVESTORS.  THE OBLIGATIONS OF EACH INVESTOR UNDER THIS
AMENDMENT, AND ANY TRANSACTION DOCUMENT ARE SEVERAL AND NOT JOINT WITH THE
OBLIGATIONS OF ANY OTHER INVESTOR, AND NO INVESTOR SHALL BE RESPONSIBLE IN ANY
WAY FOR THE PERFORMANCE OR NON-PERFORMANCE OF THE OBLIGATIONS OF ANY OTHER
INVESTOR UNDER THIS AMENDMENT OR ANY TRANSACTION DOCUMENT. NOTHING CONTAINED
HEREIN OR IN ANY TRANSACTION DOCUMENT, AND NO ACTION TAKEN BY ANY INVESTOR
PURSUANT THERETO, SHALL BE DEEMED TO CONSTITUTE THE INVESTORS AS A PARTNERSHIP,
AN ASSOCIATION, A JOINT VENTURE OR ANY OTHER KIND OF ENTITY, OR CREATE A
PRESUMPTION THAT THE INVESTORS ARE IN ANY WAY ACTING IN CONCERT OR AS A GROUP
WITH RESPECT TO SUCH OBLIGATIONS OR THE TRANSACTIONS CONTEMPLATED BY THIS
AMENDMENT OR THE TRANSACTION DOCUMENTS.  EACH INVESTOR SHALL BE
ENTITLED TO INDEPENDENTLY PROTECT AND ENFORCE ITS RIGHTS, INCLUDING WITHOUT
LIMITATION, THE RIGHTS ARISING OUT OF THIS AMENDMENT OR OUT OF THE OTHER
TRANSACTION DOCUMENTS, AND IT SHALL NOT BE NECESSARY FOR ANY OTHER INVESTOR TO
BE JOINED AS AN ADDITIONAL PARTY IN ANY PROCEEDING FOR SUCH PURPOSE. EACH
INVESTOR HAS BEEN REPRESENTED BY ITS OWN SEPARATE LEGAL COUNSEL IN THEIR REVIEW
AND NEGOTIATION OF THIS AMENDMENT AND THE TRANSACTION DOCUMENTS.

       

       

      

       

      IN WITNESS WHEREOF, the
parties have duly executed this Amendment as of the date first written
above.

      

      CRYOPORT,
INC.

      

      

      By: /s/ Larry
G. Stambaugh      

      Name:
Larry G. Stambaugh

      Title:
Chief Executive Officer

      

      

      [signature page of Holders
follows]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Holders’
Signature Page

       

      BRIDGEPOINTE MASTER FUND
LTD.

       

      

      By: /s/ Eric S. Swartz      

       

      Name:
Eric S. Swartz

       

      Title:
Director

       

       

      ENABLE GROWTH PARTNERS
LP

       

      

      By: /s/ Mitch Levine       

       

      Name:
Mitch Levine

       

      Title:
CEO

       

      

       

      ENABLE OPPORTUNITY PARTNERS
LP

       

       

      By: /s/ Mitch Levine      

       

      Name:
Mitch Levine

       

      Title:
CEO

       

      

       

      PIERCE DIVERSIFIED STRATEGY MASTER
FUND LLC, ENA

       

      

      By: /s/ Mitch Levine      

       

      Name:
Mitch Levine

       

      Title:
CEOExhibit 10.23

 

WAREHOUSING
AND DISTRIBUTION AGREEMENT

 

	
   

  	
  12/21/2009

  

 

 

	
  Storer:

  	
   

  	
  Services
  Provided at:

  
	
  JOES JEANS

  	
   

  	
  DEPENDABLE DISTRIBUTION CENTERS

  
	
  5901 S. EASTERN

  	
   

  	
  2555 E. OLYMPIC BLVD

  
	
  COMMERCE, CA 90040

  	
   

  	
  LOS ANGELES, CA 90023

  
	
  Contact:

  	
   

  	
   

  
	
  Phone:
  323-837-3700

  	
  Fax:
  323-837-3790

  	
   

  	
  Phone:
  323-526-2200

  	
  Fax:
  323-526-2201

  
	
  E-Mail:

  	
   

  	
   

  	
   

  	
   

  

 

Product(s) to
be stored: Jeans

 

	
  FUNCTION

  	
   

  	
  Rate

  	
   

  	
  Per

  	
   

  
	
  Source:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STORAGE, for Office, LA warehouse
  and Commerce warehouse

  	
   

  	
  $

  	
  0.65

  	
   

  	
  SQ FT

  	
   

  
	
  Minimum Renewal Storage

  	
   

  	
  $

  	
  500.00

  	
   

  	
  Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor DDC Personnel

  	
   

  	
  145

  	
  %

  	
  Hourly

  	
   

  
	
  Labor Temporary Personnel

  	
   

  	
  140

  	
  %

  	
  Hourly

  	
   

  
	
  Forklift Billed per machine hour

  	
   

  	
  $

  	
  8.45

  	
   

  	
  Hourly

  	
   

  
	
  Move in estimated at 65 people
  for 2 days at 10 hours

  	
   

  	
  $

  	
  40,000.00

  	
   

  	
  Estimate

  	
   

  

 

Conditions

	
  1.

  	
  All bills due and payable
  within 30 days of invoice. Based on approved credit.

  
	
  2.

  	
  Account subject to
  review within 90 days of first inbound shipment.

  
	
  3.

  	
  Subject
  to a minimum 3% annual increase.

  
	
  4.

  	
  Original
  storage: Square
  footage will be assessed by a monthly measure of space used.

  
	
  5.

  	
  Renewal
  storage: Based
  on space used when measured

  
	
  6.

  	
  Assumption — Pricing
  based on account profile.

  
	
  7.

  	
  All request (other than EDI normal order
  transmissions) must be in writing; no verbal authorizations.

  

 

ACCEPTANCE
- Shipment of goods to Dependable constitutes acceptance of agreement by
storer.

 

	
  JOES
  JEANS

  	
   

  	
  DEPENDABLE
  DISTRIBUTION CENTERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Marc Crossman

  	
   

  	
  Signature:

  	
   

  	
  /s/ Steve Willis

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print:

  	
   

  	
  Marc Crossman

  	
   

  	
  Print:

  	
   

  	
  Steve Willis

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  President &
  CEO

  	
  Date: 1/8/2010

  	
   

  	
  Title:

  	
   

  	
  Director of Warehouse

  	
  Date: 1/8/2010

  
									

 

1

 

ADDITIONAL
SERVICES AND CHARGES

 

The rates submitted below
are chargeable as specified in the attached Terms and Conditions for Warehousing
and Distribution.  Any services not
specified below will be charged the applicable hourly rate.

 

	
  Function

  	
   

  	
  Rate

  	
   

  	
  Per

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wood pallets #2 grade

  	
   

  	
  $

  	
  5.00

  	
   

  	
  Pallet

  	
   

  
	
  Pallet Wrap

  	
   

  	
  $

  	
  2.00

  	
   

  	
  Pallet

  	
   

  

 

LIABILITY

DDC shall not be liable
for any loss or injury to goods stored, however caused, unless such loss or
injury resulted from the failure of DDC to exercise such care in regard to the
goods as a reasonably careful person would exercise under the circumstances,
and DDC is not liable for damages which could not have been avoided by the
exercise of such care.  DDC assumes no
responsibility for goods resting in rail cars, trucks or containers.  Rates and charges do not include fire or
other insurance.  Merchandise stored is
not insured for Storer by DDC.

 

CHARGE
BACKS

Our policy is not to pay
chargebacks unless we have adjusted the rate to compensate us for this
contingency.  While we have not included
chargebacks in your pricing, we will agree to cover cost of labor and transportation
on chargebacks that have occurred as a direct result of our failure to follow
instructions or stated procedure.

 

LIABILITY
LIMITATION

In the case of goods
lost, damaged, or consequential damages, due to causes for which DDC is
responsible, as adjudged by a court of competent jurisdiction, the measure of
damages stipulated herein shall be applied. 
That measure shall be the manufacturer’s cost of the damaged goods; in
no instance shall the amount of the damage awarded exceed twenty-five (25) times
the base storage rate per unit stored. 
The base storage rate is the storage rate per unit received as described
on the applicable warehouse receipt, unless Storer declares excess value at the
time goods are tendered for storage.  In
the event storage is on a square foot basis, the base storage rate will be
calculated by dividing the monthly inventory by the monthly space charges.  Rates quoted are on the basis of this maximum
monetary liability; where excess valuation is declared, there shall be a charge
of two and one-half percent (2 1⁄2 %) per month of the total valuation in
addition to the base storage rate. 
Warehouseman shall receive a shrinkage allowance of .33% of the total
inventory throughput of the facility over the previous 24 months.   Overages and shortages will be combined to
determine shrinkage.

 

STORER’S
CLAIMS

As a condition precedent
to recover, claims for loss or damage must be made in writing by registered or
certified mail within thirty (30) days after delivery of the last package of
the lot in DDC’s possession. Liability is limited to the landed cost to DDC.

 

ACCEPTANCE

Shipment of goods to
Dependable constitutes acceptance of Agreement by Storer.  Quotation void if not accepted by Storer
within 60 days from date of quote/contract. 
If merchandise received or assumptions differ from those described
herein, rates will be revised accordingly.

 

	
  JOES
  JEANS

  	
   

  	
  DEPENDABLE
  DISTRIBUTION CENTERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Marc
  Crossman

  	
   

  	
  Signature:

  	
   

  	
  /s/ Steve Willis

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print:

  	
   

  	
  Marc Crossman

  	
   

  	
  Print:

  	
   

  	
  Steve Willis

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  President &
  CEO

  	
  Date: 1/8/2010

  	
   

  	
  Title:

  	
   

  	
  Director of Warehouse

  	
  Date: 1/8/2010

  
									

 

2

 

STANDARD WAREHOUSE TERMS AND CONDITIONS

 

The
property described on this receipt is stored and handled in accordance with the
terms and conditions of the Contract and Rate Quotation. These Contract and
Rate Quotation terms and conditions are repeated below for the convenience of
the storer and others having an interest in the property.

 

ACCEPTANCE –Sec. 1 and rate quotation

 

(a)     
This contract including accessorial charges endorsed on or attached hereto must
be accepted within 30 days from the proposal date by signature of depositor on
the reverse side of the contract. In the absence of a written acceptance, the
act of tendering goods described herein for storage or other services by
warehouseman within 30 days from the proposal date shall constitute such
acceptance by depositor.

 

(b)    
In the event that goods tendered for storage or other services do not conform
to the description contained herein, or conforming goods are tendered after 30
days from the proposal date without prior written acceptance by depositor as
provided in paragraph (a) of this section, warehouseman may refuse to
accept such goods. If warehouseman accepts such goods, depositor agrees to
rates and charges as may be assigned and invoiced by warehouseman and to all
terms of this contract.

 

(c)     
This contract may be cancelled by either party upon 30 days written notice and
are cancelled if no storage or other services are performed under this contract
for a period of 180 days.

 

SHIPPING – Sec. 2

 

Depositor
agrees not to ship goods to warehouseman as the named consignee. If in
violation of this agreement, goods are shipped to warehouseman as named
consignee, depositor agrees to notify carrier in writing prior to such named as
consignee is a warehouseman and has no beneficial title or interest in such
property and depositor further agrees to indemnity and hold harmless
warehouseman from any and all claims for unpaid transportation charges,
including undercharges, demurrage, detention or charges of an nature, in
connection with goods so shipped. Depositor further agrees, that if it all
fails to notify carrier as required by the next preceding sentence warehouseman
shall have the right to refuse such goods. Depositor agrees that all promises
contained in this section will be binding on the depositor’s heirs, successors
and assigns.

 

TENDER FOR STORAGE – Sec. 3

All
goods for storage shall be delivered at the warehouse properly marked and
packaged for handling. The depositor shall furnish at or prior to such
delivery, a manifest showing marks, brands, or sizes to be kept and accounted
for separately, and the class of storage and other services desired.

 

STORAGE PERIOD AND CHARGES – Sec. 4

(a)     All
charges for storage are per package and or other agreed upon unit per month.

 

(b)    
Storage charges become applicable upon the date that warehouseman accepts care,
custody and control of the goods, regardless of unloading date or date of issue
of warehouse receipt.

 

(c)     
If space is required beyond that which is dedicated specifically to Joe’s
Jeans, a charge per square foot will be applied to the additional space as
follows:  $.0.65 per square foot if
received on the 1st through the 15th of the month, and $0.325 per square foot
if received from the 16th through the last day of the month.  A full month’s storage charge will apply to
all goods in storage the first day of the next and succeeding calendar months
in the event depositor exceeds the dedicated footprint of the space from the
prior month.

 

(d)    
Intentionally Omitted.

 

 

TRANSFER, TERMINATION OF STORAGE, REMOVAL OF GOODS – Sec. 5

 

(a)     
Instructions to transfer goods on the books of the warehouseman are not effective
until delivered to and accepted by warehouseman, and all charges up to the time
of transfer is made are chargeable to the depositor of record.

 

(b)    
The warehouseman reserves the right to move, at his expense, 14 days after
notice is sent by certified or registered mail to the depositor of record or to
the last known holder of the negotiable warehouse receipt, any goods in storage
from the warehouse in which they may be stored to any other of his warehouses;
but if such depositor or holder takes delivery of his goods in lieu of
transfer, no storage charge will be made for the current storage month.

 

(c)     
The warehouseman may, upon written notice to the depositor of record and any
other person known by the warehouseman to claim an interest in the goods,
require the removal of any goods by the end of the next succeeding storage
month. Such notice shall be given to the last known place of business or abode
of the person to be notified. If goods are not removed before the end of the
next succeeding storage month, the warehouseman may sell them in accordance
with applicable law.

 

(d)    
DDC recognizes and agrees that it will execute a separate agreement in favor of
lender for Joe’s Jeans, Inc. regarding security interest, warehousemen’s
lien, and responsibility for outstanding warehouse charges for goods stored at
its premises under this Agreement and for all services provided by DDC.

 

(e)     
Intentionally Omitted

 

Utilities – Sec. 6

(a)     DDC’s
baseline electrical cost is $2150.00 per month. DDC will invoice Joes Jeans, Inc.
to off-set the amount of that months electrical bill in excess of the baseline
electrical cost.  DDC’s baseline natural
gas cost is $50.00 per month. DDC will invoice Joes Jeans, Inc. to off-set
the amount of that months natural gas bill in excess of the baseline natural
gas cost.

 

(b)    
Intentionally Omitted

 

(c)     
Intentionally Omitted

 

(d)    
Intentionally Omitted

 

(e)     Intentionally
Omitted

 

 

INVENTORY RECONCILIATION DELIVERY REQUIREMENTS – Sec. 7

(a)     No
goods shall be delivered or transferred except upon receipt by the warehouseman
of complete instructions properly signed by the depositor. However, when no
negotiable receipt is outstanding, goods may be delivered upon instructions by
telephone in accordance with a prior written authorization, but the
warehouseman shall not be responsible for loss or error occasion thereby.

 

(b)     When
a negotiable receipt has been issued no goods covered by that receipt shall be
delivered, or transferred on the books of the warehouseman, unless the receipt,
properly endorsed, is surrendered for cancellation, or for endorsement or
partial delivery thereon. If a negotiable receipt is lost or destroyed,
delivery of goods may be made only upon order of a court of competent jurisdiction
and the posting of security approved by the court as provided by law.

 

(c)     When
goods are ordered out a reasonable time shall be given the warehouseman to
carry out instructions, and if he is unable because of acts of God, war, public
enemies, seizure under legal process, strikes, lockouts, riots and civil
commotions, or any reason beyond the warehouseman is not liable, or because of
any other excuse provided by law, the warehouseman shall not be liable for
failure to carry out such instructions and goods remaining in storage will
continue to be subject to regular storage charges.

 

Tennant Improvements, Security Cameras, Parking, HVAC and
Security Services – Sec. 8

(a)     DDC
and Joes Jeans, Inc. have agreed to equally share in all expenses for the
cosmetic improvements of the office space occupied by Joe’s Jeans, Inc. at
2901 Eastern Ave., Commerce, CA 90040. These improvements shall be limited to
the cost of Painting, Carpeting, Tiling and Fencing this space in preparation
for occupancy.

(b)     Joe’s
Jeans, Inc. has agreed to install security cameras in conjunction with
DDC’s Security Consultant at their own expense. Joes Jeans, Inc. will
remove these cameras at the completion of the Tenancy.

(c)     DDC
shall provide 5 designated parking spot immediately adjacent to the occupied
space in Commerce CA. The remaining visitor parking and roof top parking shall
be communal and accessed by Joe’s Jeans personnel on an as available basis.

(d)     Solutions
to provide HVAC in the cutting area will be investigated. The cost of temporary
HVAC will be borne by Joe’s Jeans, Inc and removed at the completion of the
Tenancy. The cost of permanent HVAC will be shared equally by Joe’s Jeans and
DDC.

(e)     Security
Services shall be provided to Joes Jeans, Inc personnel Monday to Friday from 8
AM to 8 PM. The cost of these services shall be billed by DDC to Joe’s Jeans,
Inc without mark-up. Joe’s Jeans, Inc will pay this invoice without set-off
within 7 days of receipt.

 

(f)     Joe’s
Jeans, Inc. has agreed to install a heater in conjunction with DDC’s
maintenance staff at their own expense. Joes Jeans, Inc. will remove these
heaters at the completion of the Tenancy.

(f)     Joe’s
Jeans, Inc. has agreed to patch and paint any holes in the walls, clean
the carpet and leave any data/phone lines placed in the facility at the
completion of the Tenancy.

 

BONDED STORAGE – Sec. 9

(a)     A
charge in addition to regular rates will be made for merchandise in bond.

 

(b)     Where
a warehouse receipt covers goods in U.S. Customs bond, such receipt shall be
void upon termination of the storage period fixed by law.

 

LIABILITY – Sec. 10

(a)     Goods
which are subject to damage through temperature or humidity changes or other
causes incident to general storage will be received in general storage only at
depositor’s risk for such damage as might result from general storage
conditions.

 

(b)     Warehouseman
and depositor mutually agree to furnish each other with waivers of the rights
of subrogation of their respective insurance carriers of their fire and
extended coverage policies.

 

MINIMUM CHARGES – Sec. 11

(a)     A
minimum handling charge per lot and a minimum storage charge per month will be
made. When a warehouse receipt covers more than one lot or when a lot is in
assortment, a minimum charge per mark, brand, or variety will be made.

 

(b)     A
minimum monthly charge or one account for storage and/or handling will be made.
The charge will apply also to each account when one customer has several
accounts, each requiring separate records and billing.

 

 

LIABILITY AND LIMITATION OF LOSS OR DAMAGES – Sec. 12

 

(a)     The
warehouseman shall not be liable for any loss or injury to goods stored however
caused unless such loss or injury resulted from the failure by the warehouseman
to exercise such care in regard to them as a reasonably careful man would
exercise under like circumstances and warehouseman is not liable for damages
which could not have been avoided by the exercise of such care.

 

(b)     Goods are not insured by warehouseman
against loss or injury however caused.

 

(c)     The
depositor declares that damages are limited to (25) twenty-five times monthly
storage rate of the specific damaged goods provided, however, that such
liability may at the time of acceptance of this contract in section 1 be
increased on part or all of the goods, however in which event a monthly charge
of 2.5% of the insured value of the goods will be made in addition to the
regular monthly storage charge.

 

(d)     All
goods under the responsibility of the warehouse company are at owner’s risk of
loss or damage caused by fire, wind, water, sprinkler leakage, rats, mice,
vermin, leakage, or providential causes or by enemies of Government, or mobs,
or breakable goods not properly packed, or from any cause beyond the control of
this warehouseman. The responsibility of the warehouseman is defined by the
Laws of the State. The warehouseman will assume no responsibility for concealed
damage, leakage, variation in weights, or for loss in weights or by reason of defective
or insufficient containers, or delays, whether occurring while goods are in
storage or are being handled, nor for failure to detect or remedy same, not for
loss or delays caused by strikes or civil commotions.

 

(e)     Warehouseman
shall not be liable for any loss or damage resulting from any act of God
including but not limited to, recouping, re-palletizing, or put away costs.

 

NOTICE OF CLAIM AND FILING OF SUIT – Sec. 13

(a)     Claims
by the depositor and all other persons must be presented in writing to the
warehouseman within a reasonable time, and in no event longer than either 60
days after delivery of the goods by the warehouseman or 60 days after depositor
of record or the last known holder of a negotiable warehouse receipt is
notified by the warehouseman that loss or injury to part or all of the goods
has occurred, whichever time is shorter.

 

(b)     No
action may be maintained by the depositor or others against the warehouseman
for loss or injury to the goods stored unless timely written claim has been
given as provided in paragraph (a) of this section and unless such action
is commenced either within nine months after date of delivery by warehouseman
or within nine months after depositor of record or the last known holder of a
negotiable warehouse receipt is notified that loss or injury to part or all of
the goods has occurred, whichever time is shorter.

 

(c)     When
goods have not been delivered, notice may be given of known loss or injury to
the goods by mailing of a registered or certified letter to the depositor of
record or to the last known holder of a negotiable warehouse receipt. Time
limitations for presentation of a claim in writing and maintaining of action
after notice begin on the date of mailing of such notice by warehouseman.

 

ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO THIS
CONTRACT.

 

Nothing entered hereon shall be constructed to extend the warehouseman’s
liability beyond the standard care specified in Section 12 above.

 

 

DDC COLLECTION POLICY

 

This memo clarifies the DDC Collection Policy.

 

The following are primary examples in which your account can be placed
on a ‘HOLD’ status:

 

A. If you’re balance due is over 30 days.

B. Whenever you’re statement balance exceeds the value of the
inventory on hand.

C. If your operational
requests require a large amount of labor expenses in terms of regular and
overtime in a short period of time measured in terms of a couple of days or one
week at the most.

D.  If you request a total release of your inventory with or
without notice.

E. Outstanding and/or unresolved balances with other Dependable
Divisions.

F. An invoice in question not being paid, rather than just not paying
the portion in question.

 

If your account is placed on ‘HOLD’ because of any of reasons listed
above, we need your personnel to contact our collections person and work
through each outstanding invoice.

 

On cleanout/move out situations prior to month end, we will provide the
balance currently due and inform you of any additional invoices yet to be
generated so the amount will be included in your final payment.

 

Normally a company check is acceptable to offset the outstanding
balanced due. 

However, if the balance of inventory does not cover the amount owed or
there is a cleanout situation, DDC will not release the inventory requested
until the payment has cleared into our account. This situation has been known
to take up to ten working days from the receipt of a check to posting into our
bank account. The preferred manner to reduce the delay factor to immediate is
to wire transfer the amount owed using our banking information, which will be
provided upon request. DDC will also accept a cashier’s check or payment by
Visa or MasterCard.

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