Document:

Employment Agreement, dated as of October 1, 2008 (Mayer)

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 EMPLOYMENT AGREEMENT, dated as of October 1, 2008, by and between
The Walt Disney Company, a Delaware corporation (“the Company”), and Kevin A. Mayer (“Executive”). 
 W I T N E S S E T H: 
 WHEREAS, the
Company and Executive wish to enter into an agreement (this “Agreement”) to provide for Executive’s continued services to the Company; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Company and Executive hereby agree as follows: 
 1.
Employment. Upon the terms and subject to the conditions of this Agreement, the Company hereby employs Executive, and Executive hereby accepts employment by the Company, for the period commencing as of October 1, 2008 and ending on the
last day of the fiscal year ending on or about September 30, 2012 (or such earlier date as shall be determined pursuant to Paragraph 5). The period during which Executive is employed pursuant to this Agreement shall be referred to as the
“Employment Period.” 
 2. Position and Duties. During the Employment Period, Executive shall serve as
Executive Vice President, Corporate Strategy, Business Development, and Technology of the Company, and in such other position or positions with the Company and its subsidiaries, consistent with his position as Executive Vice President, Corporate
Strategy, Business Development, and Technology, as the Company shall reasonably assign Executive from time to time. During the Employment Period, Executive shall devote substantially all his business time to the services required of him hereunder,
and shall perform such services in a manner consonant with the duties of his position. Executive shall be subject to the terms and conditions of any applicable policy of the Company (including, without limitation, “The Walt Disney Company and
Associated Companies Standards of Business Conduct” booklet), as interpreted from time to time by the Company, regarding service (including as a director) on behalf of the Company or any affiliated organization, provided that, subject to the
provisions of Paragraph 7(a), nothing herein shall preclude Executive from (i) engaging in charitable activities and community affairs, and (ii) managing his personal investments and affairs, so long as the activities
listed in subclauses (i)-(ii) do not materially interfere, individually or in the aggregate, with the proper performance of his duties and responsibilities as Executive Vice President, Corporate Strategy, Business Development, and Technology of
the Company. 
  

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 3. Compensation. 
 (a) Base Salary. Executive shall receive an annual salary of $700,000 for the first year of the term. For each year thereafter,
Executive will receive an annual salary in an amount determined by the Company in its sole discretion, provided, however, that none of such subsequent annual salaries shall be less than $700,000. Salary payments shall be made in equal
installments in accordance with Company’s then prevailing payroll policy. 
 The amount of annual base salary payable under this
Paragraph 3(a) shall be reduced, however, to the extent Executive elects in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and interpretations thereunder
(“Section 409A”), to defer such salary under the terms of any deferred compensation or savings plan or arrangement maintained or established by the Company or any of its subsidiaries. Executive’s annual base salary
payable hereunder, without reduction for any amounts deferred as described above, is referred to herein as the “Base Salary.” The Company shall pay Executive the portion of his Base Salary not deferred at the election of
Executive in accordance with its generally applicable policies for senior executives, but not less frequently than in equal monthly installments. 
 (b) Annual Incentive Bonus. Executive shall be given the opportunity to earn an annual incentive bonus in accordance with the annual bonus plan generally applicable to the Company’s executive officers, as
the same may be in effect from time to time (the “Annual Plan”). Executive’s target annual incentive bonus opportunity under the Annual Plan during each full fiscal year during the term hereof shall be no less than 125%
of Executive’s Base Salary as expected to be in effect at the end of such fiscal year. The actual amount payable to Executive as an annual bonus under the Annual Plan shall be dependent upon the achievement of performance objectives established
in accordance with the Annual Plan by the committee of the Board of Directors of Company responsible for administering such Annual Plan (the “Compensation Committee”), which shall be substantially the same as the objectives
established under the Annual Plan for other executive officers of the Company. The preceding sentence shall not limit any power or discretion of the Board of Directors of the Company or the Compensation Committee in the administration of the Annual
Plan. Accordingly, depending on performance, the actual amount payable as an annual bonus to Executive under the Annual Plan may be less than, greater than or equal to the target bonus specified above. Any bonus payable pursuant to this
Paragraph 3(b) shall be paid at the same time as annual bonuses are payable to other executive officers of the Company in accordance with the provisions of the Annual Plan, subject to Executive’s continued employment with the Company
through the date on which such bonuses are paid (except that, with respect to any annual bonus payable to Executive for the fiscal year ending on or about September 30, 2012, 

  

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Executive need only be employed through the end of such fiscal year, and any such annual bonus will be paid no later than March 15, 2013). 

(c) Eligibility for Equity Awards. Subject to the terms of this Agreement, Executive shall be entitled to participate in any
stock option, performance share, performance unit or other equity based long-term incentive compensation plan, program or arrangement generally made available to senior executive officers of the Company, on substantially the same terms and
conditions as generally apply to such other officers, except that the size of the awards made to Executive shall reflect Executive’s position with the Company and the Compensation Committee’s evaluation of Executive’s performance and
competitive compensation practices. 
 4. Benefits, Perquisites and Expenses. 
 (a) Benefits. During the Employment Period, Executive shall be eligible to participate in (i) each welfare benefit plan
sponsored or maintained by the Company and made available generally to the Company’s executive officers, including, without limitation, each such group life, hospitalization, medical, dental, health, accident or disability insurance or similar
plan or program, and (ii) each pension, profit sharing, retirement, deferred compensation or savings plan sponsored or maintained by the Company for the Company’s executive officers, in each case, whether now existing or established
hereafter, in accordance with the generally applicable provisions thereof (excluding, however, Disney’s Family Income Assurance Plan). 
 (b) Perquisites. During the Employment Period, Executive shall be entitled to receive such perquisites as are generally provided to other executive officers of the Company in accordance with the then current
policies and practices of the Company. 
 (c) Business Expenses. The Company shall pay or reimburse Executive for all
reasonable expenses incurred or paid by Executive during the Employment Period in the performance of Executive’s duties hereunder, upon presentation of expense statements or vouchers and such other information as the Company may require and in
accordance with the generally applicable policies and procedures of the Company. 
 (d) Indemnification. The Company
shall provide Executive with an indemnification agreement substantially equivalent to its form for such agreement as currently provided to its senior officers generally, which shall continue in full force and effect in accordance with its terms.

  

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 5. Termination of Employment. 
 (a) Early Termination of the Employment Period. Notwithstanding Paragraph 1, the Employment Period shall end upon the earliest to
occur of (i) Executive’s death, (ii) a Termination due to Disability, (iii) a Termination for Cause, (iv) the Termination Date specified in connection with any exercise by the Company of its
Termination Right or (v) a Termination for Good Reason. If the Employment Period terminates as of a date specified under this Paragraph 5, Executive agrees that, upon written request from the Company, he shall resign from any and
all positions he holds with the Company and any of its subsidiaries and affiliates, effective immediately following receipt of such request from the Company (or at such later date as the Company may specify). 
 (b) Benefits Payable Upon Termination. 
 (i) In the event of Executive’s death during the Employment Period or a Termination due to Disability, Executive or his beneficiaries
or legal representatives shall be provided the Unconditional Entitlements, including, but not limited to, any such Unconditional Entitlements that are or become payable under any Company plan, policy, practice or program or any contract or agreement
with the Company by reason of Executive’s death or Termination due to Disability. 
 (ii) In the event of
Executive’s Termination for Cause, Executive shall be provided the Unconditional Entitlements. 
 (iii) In the event of a
Termination for Good Reason or the exercise by the Company of its Termination Right, Executive shall be provided the Unconditional Entitlements and the Company shall provide Executive the Conditional Benefits, subject to
(A) Executive’s execution of the Release, (B) Executive having not revoked such Release within the seven-day revocation period permitted following delivery of such Release and (C) Executive’s execution
of the Consulting Agreement. For Executive to become entitled to the Conditional Benefits, Executive must deliver both the executed Release and the executed Consulting Agreement to the Company by no later than twenty-two (22) days following the
Termination Date. 
 (c) Unconditional Entitlements. For purposes of this Agreement, the “Unconditional
Entitlements” to which Executive may become entitled under Paragraph 5(b) are as follows: 
 (i) Earned
Amounts. The Earned Compensation shall be paid within 30 days following the termination of Executive’s employment hereunder, or if any part thereof constitutes a bonus which is subject to or 

  

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conditioned upon any performance conditions, within thirty (30) days following the determination that such conditions have been met, provided
that in no event shall the bonus be paid later than 90 days following his termination of employment. 
 (ii)
Benefits. All benefits payable to Executive under any employee benefit plans (including, without limitation any pension plans or 401(k) plans) of the Company or any of its affiliates applicable to Executive at the time of termination of
Executive’s employment with the Company and all amounts and benefits (other than the Conditional Benefits) which are vested or which Executive is otherwise entitled to receive under the terms of or in accordance with any plan, policy, practice
or program of, or any contract or agreement with, the Company, at or subsequent to the date of his termination without regard to the performance by Executive of further services or the resolution of a contingency, shall be paid or provided in
accordance with and subject to the terms and provisions of such plans, it being understood that all such benefits shall be determined on the basis of the actual date of termination of Executive’s employment with the Company. Notwithstanding the
immediately preceding sentence, Executive shall not be entitled to any benefits under any severance plan or policy of the Company or any of its subsidiaries. 
 (iii) Indemnities. Any right which Executive may have to claim a defense and/or indemnity for liabilities to or claims asserted by
third parties in connection with Executive’s activities as an officer, director or employee of the Company or any of its affiliates pursuant to the terms of the Indemnification Agreement referenced in Paragraph 4(d) shall be unaffected by
Executive’s termination of employment and shall remain in effect in accordance with its terms. 
 (iv) Medical
Coverage. Executive shall be entitled to such continuation of health care coverage as is required under, and in accordance with, applicable law or otherwise provided in accordance with the Company’s policies. Executive shall be notified in
writing of his rights to continue such coverage after the termination of his employment pursuant to this Paragraph 5(c)(iv), provided that Executive timely complies with the conditions to continue such coverage. Executive understands and
acknowledges that Executive is responsible to make for all payments required for any such continued health care coverage that Executive may choose to receive. 
  

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 (v) Business Expenses. Executive shall be entitled to reimbursement, in accordance
with the Company’s policies regarding expense reimbursement as in effect from time to time, for all business expenses incurred by him prior to the termination of his employment. 
 (vi) Stock Options/RSUs. Except to the extent additional rights are provided upon Executive’s qualifying to receive the
Conditional Benefits, Executive’s rights with respect to any stock options and/or restricted stock units granted to him by the Company shall be governed by the terms and provisions of the plans (including plan rules) and award agreements
pursuant to which such stock options and restricted stock units were awarded, as in effect at the date Executive’s employment terminates. 
 (d) Conditional Benefits. For purposes of this Agreement, the “Conditional Benefits” to which Executive may become entitled, provided he complies with the terms and conditions hereof
(including the applicable agreements attached hereto), are as follows: 
 (i) Remaining Salary. As specified in
further detail in paragraph 2 of the Consulting Agreement, the Company shall pay Executive a lump sum amount equal to the Consulting Amount as compensation for his consulting services under the Consulting Agreement. If the Scheduled Expiration
Date is later than the end of the Consulting Agreement Period, the Company shall also pay Executive the Severance Amount. The Consulting Amount and the Severance Amount shall be paid on the date that is six months and one day after the Termination
Date (or upon Executive’s death, if earlier). 
 (ii) Stock Options. All of Executive’s Continuing Unvested
Options shall become exercisable in accordance with the applicable Original Stock Option Award Documents, on the same basis as such options would have become vested and exercisable if Executive had remained employed under this Agreement through the
Scheduled Expiration Date. Once exercisable, all Continuing Unvested Options shall remain exercisable until the Stock Option Termination Date. All of Executive’s Remaining Stock Options that were vested and exercisable at the Termination Date
shall remain exercisable until the Stock Option Termination Date. Notwithstanding any other term or provision hereof, any of Executive’s stock options which are not vested at the Termination Date, and which are not Continuing Unvested Options,
shall automatically terminate upon the Termination Date. Except as otherwise expressly provided herein, all of the Remaining Stock Options shall continue to be subject to the Original Stock Option Award Documents. Notwithstanding the foregoing, in
the event of Executive’s death prior to the Scheduled 

  

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Expiration Date, all Continuing Unvested Options shall vest on the date of Executive’s death and all Remaining Stock Options shall be exercisable for
the period following Executive’s death determined under such Original Stock Option Award Documents on the same basis as though Executive was employed on the date of his death and regardless of when the Stock Option Termination Date occurs.
However, any provisions in the Original Stock Option Award Documents relating to disability or change in control of the Company after the Termination Date shall not be operative with respect to any Remaining Stock Options. 
 (iii) RSUs. The Remaining Stock Units shall continue to vest in accordance with the terms of the Original RSU Award Documents,
regardless of Executive’s termination of employment. Except as otherwise expressly provided herein, all such Remaining Stock Units shall be subject to, and administered in accordance with, the Original RSU Award Documents. Any of
Executive’s restricted stock unit awards that have not become vested on or before the Termination Date, and that are outstanding at the Termination Date, but which are not Remaining Stock Units, shall automatically terminate on the Termination
Date. Notwithstanding any term or provision of the Original RSU Award Documents: 
 (A) any provisions in such Original RSU
Award Documents relating to disability shall not be applicable to any such Remaining Stock Units after the Termination Date; 
 (B) for so long as this Agreement shall be in effect (that is, regardless of whether the Termination Right has been exercised or a Termination for Good Reason shall have occurred), any terms in any of the Original RSU Award Documents
relating to a change in control of the Company shall not be operative unless the event that constitutes a change in control of the Company also constitutes a “change in control event” with respect to the Company within the meaning of
Section 409A; 
 (C) in the event of Executive’s death after the Termination Date but prior to the Scheduled
Expiration Date, the terms and provisions of the Original RSU Award Documents shall be interpreted and applied in the same manner with respect to such Remaining Stock Units as if Executive were an active employee on the date of his death; and

 (D) to the extent that, under the Company’s compensation practices and policies, any tranche of Remaining Stock Units
is subject to the achievement of performance 

  

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conditions which were imposed solely because Executive was an executive officer of the Company who could have been a covered employee within the meaning of
Section 162(m) at the time payment in respect of such award was expected to be made (the “Applicable 162(m) Criteria”) and such Applicable 162(m) Criteria relate, in whole or in part, to any performance period continuing after the end
of the Company’s fiscal year in which the Termination Date occurs, such Applicable 162(m) Criteria shall be waived as of the Termination Date with respect to such tranche of the Remaining Stock Units; provided, however, that this Paragraph
5(d)(iii)(D) shall not be applicable if and to the extent, in the reasonable opinion of tax counsel to the Company, the presence of such provision would cause any stock units intended to be qualified as other performance based compensation within
the meaning of Section 162(m) of the Code to fail to be so qualified at any time prior to Executive’s Termination Date. 
 (iv) Pro-Rated Current Year Bonus. The Company shall pay Executive a pro rata annual bonus for the year in which the Termination Date occurs, determined on the basis of an assumed full-year target bonus determined pursuant to
Section 3(b) and the number of days in the applicable fiscal year occurring on or before the Termination Date. Such pro-rata current year bonus shall be paid no later than the later of (i) two and a half months after the end of
Executive’s tax year in which the Termination Date occurs and (ii) two and a half months after the end of the Company’s tax year in which the Termination Date occurs. 
 (v) Additional Distribution Rules in Respect of Conditional Benefits. The following additional rules shall apply with respect to
distribution of the payments and benefits, if any, to be provided to Executive under Paragraph 5(d)(i), (iii) and (iv): 
 (A) It is intended that each installment of the payments and benefits provided under Paragraphs 5(d)(i), (iii) and (iv) shall be treated as a separate “payment” for purposes of Section 409A. Neither the Company nor
Executive shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A; 
 (B) Distribution in respect of any tranche of Remaining Stock Units to which Paragraph 5(b)(iii)(D) applies shall be made within 90 days
following the later of the date that (i) the service conditions that had originally been specified for such tranche of 

  

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Remaining Stock Units under the applicable Original RSU Award Documents would otherwise have been satisfied (had Executive continued to be employed) and
(ii) the last performance measurement period applicable in respect of such tranche of Remaining Stock Units under the applicable Original RSU Award Documents would otherwise have expired; 
 (C) Each installment of the payments and benefits due under Paragraph 5(d)(i) and (iii) that would, absent this subsection, be paid
within the six-month period following Executive’s “separation from service” (within the meaning of Section 409A of the Code and as provided in Paragraph 5(g) hereof) from the Company shall not be paid until the date that is six
months and one day after such separation from service (or, if earlier, Executive’s death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six
months and one day following Executive’s separation from service; provided, however, that the preceding provisions of this sentence shall not apply to any installment of payments and benefits if and to the maximum extent that that such
installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation
from service). (Any installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of Executive’s second taxable year following the taxable year of Executive’s
in which the separation from service occurs.) Any subsequent installments that would be payable more than six months following Executive’s separation from service shall be paid in accordance with the dates and terms set forth herein.

 (e) Definitions. For purposes of this Paragraph 5, the following terms shall have the meanings ascribed to them
below: 
 “Consulting Agreement” means the consulting agreement in the form attached hereto as Exhibit A.

 “Consulting Agreement Period” means the period established under the Consulting Agreement during which Executive
shall be required to provide consulting services to the Company. 
  

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 “Consulting Amount” means a lump sum amount equal to the aggregate Base Salary
which would have been earned by Executive had his employment under this Agreement continued after the Termination Date and through the earlier to occur of (i) the end of the Consulting Agreement Period or (ii) any earlier
date that the Consulting Agreement terminates for any reason whatsoever. 
 “Continuing Unvested Options”
means any of Executive’s stock options that were not vested and exercisable at the Termination Date, but that would have become vested and exercisable on or prior to the Latest Stock Option Vesting Date had Executive continued to be
employed by the Company through the Scheduled Expiration Date. 
 “Earned Compensation” means the sum of
(a) any Base Salary earned, but unpaid, for services rendered to the Company on or prior to the date on which the Employment Period ends pursuant to Paragraph 5(a) (but excluding any salary and interest accrued thereon payment of which
has been deferred) and (b) if Executive’s employment terminates due to Executive’s death or in a Termination due to Disability or a Termination for Good Reason or due to the Company’s exercise of its Termination Right, in
any case, after the end of a fiscal year, but before the annual incentive compensation payable for services rendered in that prior fiscal year has been paid, the annual incentive compensation that would have been payable to Executive for such
completed fiscal year in accordance with Paragraph 3(b). 
 “Latest Stock Option Vesting Date”
means the date which is three months after the Scheduled Expiration Date. 
 “Original Stock Option Award
Documents” means, with respect to any Remaining Stock Option, the terms and provisions of the award agreement and plan pursuant to which such Remaining Stock Option was granted, each as in effect on the Termination Date. 
 “Original RSU Award Documents” means, with respect to any tranche of Remaining Stock Units, the terms and provisions
of the award agreement related to and the plan governing, such tranche of Remaining Stock Units, each as in effect on the Termination Date. 
 “Release” means the General Release in the form set forth in Exhibit B attached hereto. 
 “Remaining Stock Options” means any of Executive’s stock options which are (i) vested at the Termination Date or (ii) Continuing Unvested Options. 
  

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 “Remaining Stock Units” means any of Executive’s restricted stock units
(whether or not subject to performance conditions) that, subject to the satisfaction of any applicable performance conditions, would have become vested on or prior to the Scheduled Expiration Date had Executive continued to be employed by the
Company through the Scheduled Expiration Date. 
 “Scheduled Expiration Date” means the last day of the fiscal
year ending on or about September 30, 2012. 
 “Severance Amount” means an amount equal to the aggregate Base
Salary which would have been earned by Executive under this Agreement (including any scheduled increase therein) for the period commencing on the day after termination of the Consulting Agreement Period and ending on the Scheduled Expiration Date;
provided that if the Company terminates the Consulting Agreement due to Executive’s material breach of the terms thereof, the Severance Amount shall be reduced to zero. 
 “Stock Option Termination Date” means with respect to any Remaining Stock Option the earlier to occur of (i) the date
which is three months after the Scheduled Expiration Date and (ii) the expiration of the stated term of such award. 
 “Termination for Cause” means a termination of Executive’s employment by the Company due to (i) gross negligence, (ii) gross misconduct, (iii) willful nonfeasance or
(iv) willful material breach of this Agreement, which termination may be effected (A) immediately upon notice from the Company if the Company shall reasonably and in good faith determine that the conduct or cause specified in such
notice is not curable (it being understood that such notice shall describe in reasonable detail the conduct or cause giving rise to such notice and shall state the reason(s) why the Company has determined that such conduct or cause is not curable);
or (B) upon twenty business days notice from the Company, if the Company shall reasonably and in good faith determine that the conduct or cause specified in such notice is curable (it being understood that such notice shall describe in
reasonable detail the conduct or cause giving rise to such notice and shall state the reason(s) why the Company has determined that such conduct or cause is curable and what steps the Company believes should or could be taken to cure such conduct or
cause); provided that the Company shall not be entitled to terminate Executive’s employment for Cause, if Executive has, within five business days after the date notice in accordance with subclause (B) has been given personally to
Executive or otherwise has been received by Executive, commenced in good faith to 

  

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cure the conduct or cause specified in such notice and completes such cure within 20 business days following the date such notice was received. 

“Termination Date” means the earlier to occur of (i) the date the Company specifies in writing to Executive in
connection with the exercise of its Termination Right or (ii) the date Executive specifies in writing to the Company in connection with any notice to effect a Termination for Good Reason. 
 “Termination due to Disability” means a termination of Executive’s employment by the Company because Executive has been
incapable, after reasonable accommodation, of substantially fulfilling the positions, duties, responsibilities and obligations set forth in this Agreement because of physical, mental or emotional incapacity resulting from injury, sickness or disease
for a period of (i) six consecutive months or (ii) an aggregate of nine months (whether or not consecutive) in any twelve month period. Any question as to the existence, extent or potentiality of Executive’s disability
shall be determined by a qualified physician selected by the Company with the consent of Executive, which consent shall not be unreasonably withheld. Executive or his legal representatives or any adult member of his immediate family shall have the
right to present to such physician such information and arguments as to Executive’s disability as he, she or they deem appropriate, including the opinion of Executive’s personal physician. 
 “Termination for Good Reason” means a termination of Executive’s employment by Executive within 30 days of the Company’s
failure to cure, in accordance with the procedures set forth below, any of the following events: (i) a reduction in any of Executive’s compensation rights hereunder (that is, Base Salary and target bonus opportunity specified in
Paragraph 3(b)), it being understood that the failure of Executive to receive an actual bonus for any fiscal year equal to or greater than the target bonus opportunity for such year is not a reduction in such compensation rights, but a failure
to pay Base Salary in accordance with the terms hereof would be a reduction in such compensation rights; (ii) the removal of him by the Company from the position of Executive Vice President, Corporate Strategy, Business Development,
and Technology; (iii) a material reduction in Executive’s duties and responsibilities as in effect immediately prior to such reduction; (v) the assignment to Executive of duties that are materially inconsistent with
his position or duties or that materially impair Executive’s ability to function as Executive Vice President, Corporate Strategy, Business Development, and Technology, and any other position in which he is then serving;
(vi) the relocation of Executive’s principal office to a 

  

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location that is more than 50 miles outside of the greater Los Angeles area; or (vii) a material breach of any material provision of this
Agreement by the Company. In addition, following the occurrence of a Change in Control (as defined in the Amended and Restated 2005 Stock Incentive Plan (the “2005 Stock Plan”)), any occurrence that would constitute a
Triggering Event for purposes of Section 11 of the 2005 Stock Plan and the Amended and Restated 1995 Stock Incentive Plan (together with the 2005 Stock Plan, the “Plans”), as such Plans may be amended from time to time, shall
also constitute an event upon which Executive may effect a Termination for Good Reason in accordance with this Agreement. Notwithstanding the foregoing, a termination shall not be treated as a Termination for Good Reason (A) if Executive
shall have consented in writing to the occurrence of the specific event giving rise to the claim of Termination for Good Reason, or (B) unless Executive shall have delivered a written notice to the Company within three months of his
having actual knowledge of the occurrence of one of such events stating that he intends to terminate his employment for Good Reason and specifying the factual basis for such termination, and such event, if capable of being cured, shall not have been
cured within 30 days of the receipt of such notice. 
 “Termination Right” means the right of the Company, in its
sole, absolute and unfettered discretion, to terminate Executive’s employment under this Agreement for any reason or no reason whatsoever. For the avoidance of doubt, any Termination for Cause effected by the Company shall not constitute the
exercise of its Termination Right. 
 (f) Conflict With Plans. As permitted under the terms of the applicable Plans,
the Company and Executive agree that the definitions of Termination for Cause or Termination for Good Reason set forth in this Paragraph 5 shall apply in place of any similar definition or comparable concept applicable under either of the Plans
(or any similar definition in any successor plan), except that, in connection with a “Triggering Event” as defined in the Plans, as such Plans may be amended from time to time, the terms of the applicable plan (and not the definitions of
Termination for Cause or Termination for Good Reason set forth in this Paragraph 5) shall apply to determine Executive’s rights and entitlements in respect of the awards made under any such plan (and only in respect of such awards). 

(g) Section 409A. To the extent applicable, it is intended that this Agreement comply with the requirements of
Section 409A, and this Agreement shall be interpreted in a manner consistent with this intent. Notwithstanding anything else contained herein to the contrary, any payment required to be made to Executive hereunder upon his termination of
employment (including any 

  

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payment pursuant to this Paragraph 5) shall be made promptly after the six month anniversary of Executive’s date of termination to the extent necessary
to avoid imposition on Executive of any tax penalty imposed under Section 409A of the Code. Solely for purposes of determining the time and form of payments due Executive under this Agreement (including any payments due under
Paragraph 3(a)) or otherwise in connection with his termination of employment with the Company, Executive shall not be deemed to have incurred a termination of employment unless and until he shall incur a “separation from service”
within the meaning of Section 409A of the Code. The parties agree, as permitted in accordance with the final regulations thereunder, a “separation from service” shall occur when Executive and the Company reasonably anticipate that
Executive’s level of bona fide services for the Company (whether as an employee or an independent contractor) will permanently decrease to no more than 40 percent of the average level of bona fide services performed by Executive for the Company
over the immediately preceding 36 months. The determination of whether and when a separation from service has occurred shall be made in accordance with this subparagraph and in a manner consistent with Treasury Regulation Section 1.409A-1(h).
To the extent that the Company and Executive determine that any provision of this Agreement could reasonably be expected to result in Executive’s being subject to the payment of interest or additional tax under Section 409A, the Company
and Executive agree, to the extent reasonably possible as determined in good faith, to amend this Agreement, retroactively, if necessary, in order to avoid the imposition of any such interest or additional tax under Section 409A. All
reimbursements and in-kind benefits provided under the Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A,
including, where applicable, the requirements that (i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for
reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the
year in which the expense is incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit. 
 (h) Amendment of Existing Agreements. The parties acknowledge and agree that to the extent that this Paragraph 5 affects any of the terms and conditions of Executive’s Remaining Stock Options or Remaining
Stock Units, this Agreement shall constitute an amendment of the Original Stock Option Award Documents and Original RSU Award Documents as they pertain to Executive. 
  

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 6. Exclusive Remedy. Executive shall be under no obligation to seek other employment or other
engagement of his services. Executive acknowledges and agrees that the payments and rights provided under Paragraph 5 are fair and reasonable, and are Executive’s sole and exclusive remedy, in lieu of all other remedies at law or in equity, for
termination of his employment by the Company upon exercise of its Termination Right pursuant to this Agreement or upon a Termination for Good Reason. The failure of Executive to execute and timely deliver the Release and/or the Consulting Agreement
for any reason (i) shall limit his rights in connection with the exercise by the Company of its Termination Right solely to the right to receive the Unconditional Entitlements, (ii) shall not effect a modification of any of
his commitments set forth in this Agreement (none of which are contingent upon execution of the Release by him) and (iii) shall not preserve or revive any rights waived by Executive hereunder. Subject to Executive’s execution and
delivery of the Release without revocation thereof and execution and delivery of the Consulting Agreement, (i) the Company agrees to enter into the Release and Consulting Agreement and (ii) there shall be no offset available to the Company
against any amounts due, paid or payable to him in respect of the Conditional Benefits under Paragraph 5 with respect to any compensation, remuneration or payment attributable to any services that Executive may provide to any third party subsequent
to termination of employment hereunder, whether as an employee or otherwise. 
 7. Non-competition and Confidentiality. 
 (a) Non-competition. During the Employment Period, Executive shall not become associated with any entity, whether as a principal,
partner, employee, consultant or shareholder (other than as a holder of not in excess of 1% of the outstanding voting shares of any publicly traded company), that is actively engaged in any geographic area in any business which is in competition
with a business conducted by the Company at the time of the alleged competition. 
 (b) Confidentiality. Without the
prior written consent of the Company, except (i) as reasonably necessary in the course of carrying out his duties hereunder or (ii) to the extent required by an order of a court having competent jurisdiction or under subpoena
from an appropriate government agency, Executive shall not disclose any trade secrets, customer lists, drawings, designs, information regarding product development, existing theatrical projects, marketing plans, sales plans, manufacturing plans,
management organization information (including data and other information relating to members of the Company’s Board of Directors and management of the Company and/or any of its related entities), operating policies or manuals, business plans,
financial records or other financial, commercial, business or technical information relating to the Company or any of its subsidiaries or information designated as confidential or proprietary that the Company or any of its subsidiaries may receive
belonging to suppliers, customers or others who do business with the Company or any of its subsidiaries (collectively, “Confidential Information”) unless such Confidential 

  

 15 

 
Information has been previously disclosed to the public by the Company or has otherwise become available to the public (other than by reason of
Executive’s breach of this Paragraph 7(b)). In addition, Executive acknowledges and agrees that he has executed or will be required to execute, the standard form of agreement, entitled “The Walt Disney Company and Associated Companies
Confidentiality Agreement,” a copy of which has been previously provided to Executive. 
 (c) Company Property.
Promptly following Executive’s termination of employment, Executive shall return to the Company all property of the Company, and all copies thereof in Executive’s possession or under his control, except that Executive may retain his
personal notes, diaries, Rolodexes, calendars and correspondence of a personal nature. 
 (d) Non-Solicitation of
Employees. During the Employment Period and, subject to the provisions of applicable law, during the two-year period following any termination of Executive’s employment, Executive shall not, except in the course of carrying out his duties
hereunder, directly or indirectly induce any employee of the Company or any of its subsidiaries to terminate employment with such entity, and shall not directly or indirectly, either individually or as owner, agent, employee, consultant or
otherwise, knowingly employ or offer employment to any person who is or was employed by the Company or a subsidiary thereof unless such person shall have ceased to be employed by such entity for a period of at least six (6) months. 

(e) Injunctive Relief with Respect to Covenants. Executive acknowledges and agrees that the covenants and obligations of
Executive with respect to noncompetition, nonsolicitation, confidentiality and the Company property relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations may cause the Company
irreparable injury for which adequate remedies are not available at law. Therefore, Executive agrees that the Company shall be entitled to obtain an injunction, restraining order or such other equitable relief restraining Executive from committing
any violation of the covenants and obligations contained in this Paragraph 8. These injunctive remedies are cumulative and are in addition to any other rights and remedies the Company may have at law or in equity. 
 8. Miscellaneous. 
 (a) Survival. Paragraphs 5 (relating to early termination of the Employment Period), 7 (relating to nondisclosure and nonsolicitation of employees), and 8(o) (relating to governing law) shall survive the termination hereof, whether
such termination shall be by expiration of the Employment Period in accordance with Paragraph 1 or an early termination of the Employment Period pursuant to Paragraph 5 hereof. 
  

 16 

 (b) Binding Effect. This Agreement shall be binding on, and shall inure to the
benefit of, the Company and any person or entity that succeeds to the interest of the Company (regardless of whether such succession does or does not occur by operation of law) by reason of a merger, consolidation or reorganization involving the
Company or a sale of all or substantially all of the assets of the Company. The Company further agrees that, in the event of a sale of assets as described in the preceding sentence, it shall use its reasonable best efforts to cause such assignee or
transferee to expressly assume the liabilities, obligations and duties of the Company hereunder. This Agreement shall also inure to the benefit of Executive’s heirs, executors, administrators and legal representatives and beneficiaries as
provided in Paragraph 8(d). 
 (c) Assignment. Except as provided under Paragraph 8(b), neither this Agreement nor any
of the rights or obligations hereunder shall be assigned or delegated by any party hereto without the prior written consent of the other party. 
 (d) Beneficiaries/References. Executive shall be entitled, to the extent permitted under any applicable law and the terms of any applicable plan, to select and change a beneficiary or beneficiaries to receive
any compensation or benefit payable hereunder following Executive’s death by giving the Company written notice thereof. In the event of Executive’s death or a judicial determination of his incompetence, reference in this Agreement to
Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative. 
 (e)
Entire Agreement. This Agreement shall constitute the entire agreement between the parties hereto with respect to the matters referred to herein; provided that this Agreement shall not alter, amend, or supercede the Indemnification Agreement
referenced in Paragraph 4(d). There are no promises, representations, inducements or statements between the parties other than those that are expressly contained herein. Notwithstanding the foregoing, nothing in this Agreement shall be construed to
limit, modify or supersede The Walt Disney Company and Associated Companies Confidentiality Agreement executed by Executive, which shall survive regardless of the termination of this Agreement. 
 (f) Representations. Executive represents that his employment hereunder and compliance by him with the terms and conditions of this
Agreement will not conflict with or result in the breach of any agreement to which he is a party or by which he may be bound. The Company represents that (i) it is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware. (ii) it has the full corporate power and authority to execute and deliver this Agreement, and (iii) the execution, delivery and performance of this Agreement has been duly and validly
authorized. 
  

 17 

 (g) Authority of the Disney Board. For the avoidance of doubt, nothing in this
Agreement shall preclude the Board of Directors of Company or the Compensation Committee from its ability to exercise any power or authority to take such actions as it is required or permitted to take as a matter of law or pursuant to the terms of
the Company’s governing documents. Nothing in this Paragraph 8(g) shall be construed to modify, amend, limit or otherwise impair the rights and entitlements of Executive set forth in the other Paragraphs of this Agreement (including, without
limitation, the rights and entitlements specified in Paragraph 5). 
 (h) Severability; Reformation. In the event
that one or more of the provisions of this Agreement shall become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby. In the event
any of subparagraphs (a), (b) or (d) of Paragraph 7 hereof is not enforceable in accordance with its terms, Executive and the Company agree that such subparagraph of such Paragraph 7 shall be reformed to make such subparagraph enforceable
in a manner which provides the Company the maximum rights permitted at law. 
 (i) Waiver. Waiver by any party hereto
of any breach or default by the other party of any of the terms of this Agreement shall not operate as a waiver of any other breach or default, whether similar to or different from the breach or default waived. No waiver of any provision of this
Agreement shall be implied from any course of dealing between the parties hereto or from any failure by either party hereto to assert its or his rights hereunder on any occasion or series of occasions. 
 (j) Notices. Any notice required or desired to be delivered under this Agreement shall be in writing and shall be delivered
personally, by courier service, by registered mail, return receipt requested, or by telecopy and shall be effective upon actual receipt when delivered or sent by telecopy and upon mailing when sent by registered mail, and shall be addressed as
follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms hereof): 
 If to the Company: 
 The Walt Disney Company 
 500 South Buena Vista Street 
 Burbank, California 91521 
 Attention: General Counsel 
 Telecopy
Number: 818 569-5146 
  

 18 

 If to Executive: 
 To the address listed as Executive’s principal residence in the Company’s human resources records and to his principal place of employment with
the Company. 
 (k) Amendments. No amendment to this Agreement shall be binding between the parties unless it is in
writing and signed by the party against whom enforcement is sought. 
 (l) Headings. Headings to paragraphs in this
Agreement are for the convenience of the parties only and are not intended to be part of or to affect the meaning or interpretation hereof. 
 (m) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 (n) Withholding. Any payments provided for herein shall be reduced by any amounts required to be withheld by the Company from time
to time under applicable federal, state or local income or employment tax laws or similar statutes or other provisions of law then in effect. 
 (o) Governing Law. This Agreement shall be governed by the laws of the State of California, without reference to principles of conflicts or choice of law under which the law of any other jurisdiction would
apply. 
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and Executive has hereunto
set his hand as of the day and year first above written. 
  

							
		 		 	THE WALT DISNEY COMPANY
				
	Dated: 10/6/08	 		 	By:	 	 /s/ Robert A. Iger

			
		 		 	EXECUTIVE
			
	Dated: 10/6/08	 		 	 /s/ Kevin A. Mayer

		 		 	Kevin A. Mayer

  

 19 

 EXHIBIT A 
 CONSULTING AGREEMENT 
 THIS CONSULTING AGREEMENT (hereinafter
referred to as “Agreement”) is made and entered into by and between Kevin A. Mayer (hereinafter referred to as “Consultant”) and The Walt Disney Company (hereinafter referred to as “Company”) on and
as of                     , 20     pursuant to that certain Employment Agreement by and between Executive and
Company dated                     , 2008 (the “Employment Agreement”). All capitalized terms not defined herein shall have
the meaning ascribed to them in the Employment Agreement. 
 1. (a) Unless this Agreement is earlier terminated as hereinafter provided, for
a period following the termination of Consultant’s employment under the Employment Agreement equal to the lesser of 6 months or the remaining period of the Term of the Employment Agreement (the “Consulting Agreement Period”),
Consultant shall personally and diligently provide to the Company such consulting services as the Company may reasonably request from time to time, provided that such services shall relate to matters appropriate for the former Executive Vice
President, Corporate Strategy, Business Development, and Technology of the Company and shall be a type and nature and duration typical for a post-employment consulting agreement with the former Executive Vice President, Corporate Strategy,
Business Development, and Technology of the Company. Consultant shall not be required to report to the Company’s offices and shall be permitted, subject to the terms hereof, to provide consulting services to third parties during the term
hereof, provided (i) in no event shall consulting services or other services or advice of any nature be provided by Consultant, directly or indirectly (whether as an employee, consultant, independent contractor, agent, partner, principal, owner
or otherwise) to any person or entity which directly or indirectly owns, operates, manages, develops, controls or provides services to, any business involved in any of the following activities: (A) the conception, creation, development,
production, purchase, sale, distribution, broadcast, transmission or other disposition (including, without limitation, the licensing and/or merchandising of related consumer products) of audio and/or visual and/or interactive products or works of
any nature in any media, including, without limiting the generality of the foregoing, any activity relating to (i) any aspect of the film, network, cable, broadcasting, mobile communications, television (including pay-per-view, closed
circuit or any inter-active form of distribution of film, television or other audio/visual product) or internet businesses or any other businesses based on or using interactive technology (including, without limiting the generality of the foregoing,
electronic and/or interactive games, environments, information centers or communities, in each case, of any nature), or (ii) the development, production, marketing or distribution by any vehicle whatsoever of any film, television or
software product or any similar content or product in any media, whether or not now existing, (B) the operation, management, development, licensing and promotion of themed resorts, hotels and restaurants or amusement or themed
entertainment parks; or (C) the design, development, publishing, promotion or sale of products based on cartoon or other animated characters, films, television and theatrical productions and other intellectual property derived 

  

 1 

 
therefrom, in each case, only to the extent that such person or entity is actively engaged in any geographic area in any business which is in competition
with a business conducted by the Company or one of its subsidiaries at the time of the performance of such services (the “Specified Activities”), and (ii) that any services required by Company shall at all times be provided
with precedence being given to Company and on a “first priority” basis to Company, although Company shall endeavor to provide, when possible, reasonable notice to Consultant of all services required hereunder and to give due consideration,
to the extent practicable, to any prior commitments Consultant may have at such time. In no event shall Consultant be required to devote more than 13.5 hours per week to services to Company hereunder, and the parties agree and understand that
Consultant’s expected commitment to such services shall regularly be less than the stated maximum weekly hours. 
 (b) In the event of a
material uncured breach by Consultant of any term or provision of this paragraph 1 hereof, all of which terms and conditions Consultant acknowledges and agrees are of the essence of this Agreement, or any other term or provision hereof, Company
shall have the right, in addition to any other right of remedy available to it at law or in equity, to terminate this Agreement. In such event Company shall have no further obligation to make payments or perform or honor any commitments under the
Release or to pay or honor any commitments which relate to or constitute any of the Conditional Benefits; provided, however, that notwithstanding the foregoing, except as otherwise specifically provided in the immediately preceding
sentence, no breach of this Agreement by Consultant, no termination of this Agreement by Company, and no other action or inaction by either of them (other than the execution by the parties of a written agreement amending or superseding the Release
or any part thereof) shall in any event or under any circumstances have any effect whatsoever on the validity, enforceability, binding nature, effect or interpretation of the release set forth in paragraph 7 of the Release, and the release set
forth therein shall remain in full force and effect. 
 (c) In the event that Consultant shall receive a notice of breach of this Agreement
from the Company, Consultant shall have ten (10) business days to cure such breach unless the Company shall have determined in its good faith business judgment that such breach is not curable. Any notice of termination pursuant to this
paragraph 2 shall set forth in reasonable detail the basis for such breach and shall contain a statement as to whether or not such breach has been determined to be curable by the Company. In the event that he receives a notice of breach of the
Agreement from the Company, Executive may challenge such finding of a breach, by written notice to the Company, and shall be afforded an opportunity to present his objection to the Company, in person or in writing, as determined by the Company,
prior to Company having any right to terminate this Agreement and the Conditional Benefits provided under the Employment Agreement. 
 2.
Consultant shall receive gross consulting fees for his services hereunder which, for any period during the Consulting Agreement Period, shall equal the amount of gross salary Consultant would have earned had he remained as an employee of the Company
under the Employment Agreement for such period. The consulting fee payments shall be made at the date set forth in Paragraph 5(d)(i) of the Employment Agreement. 
  

 2 

 3. Company shall reimburse Consultant, in accordance with the procedures of Company then in effect for
its employees, for reasonable business expenses incurred by Consultant in the course of performing the services hereunder. 
 4. Company, its
successors, privies and assigns shall be entitled to, and shall, own as their exclusive property all of the results and proceeds of the services (which results and proceeds are hereafter collectively referred to as the “Work
Product”) in whatever stage of completion, all of which shall be considered a work-for-hire, including, without limitation, all written work, research, plot outlines, computer programs, plans, drawings, paintings, sculptures, fanciful
creations, specifications, ideas, scripts, sketches, designs, concepts, software, systems, reports, documentation, and other tangible or intangible work product produced. Company shall own all rights in the Work Product in perpetuity throughout the
universe including, without limitation, the rights to produce, manufacture, record, reproduce, distribute, transfer or prepare derivative works from the Work Product by any art, medium or method and all copyrights, trademarks and/or patents in the
Work Product. Company shall be deemed the sole author of the Work Product and is entitled to the copyright therein (and all renewals and extensions thereof), and the full ownership to the original and all copies of the Work Product. Company shall
have the right to dispose of the Work Product and/or make any or all uses thereof as it, at any time and in the exercise of its sole discretion, may desire. Consultant shall deliver all originals and copies of the Work Product (whether completed or
in process) and all research, plans, designs, specifications and any other work product or information which pertains to the Work Product to Company upon completion of the Services hereunder or upon earlier termination of this Agreement. Consultant
shall not retain, use or disclose any of the Work Product without Company’s prior written consent. The termination, completion or breach of this Agreement on whatever grounds and by whomsoever affected shall not affect Company’s exclusive
ownership of the Work Product. Consultant hereby assigns to Company all now known or hereafter existing rights of every kind throughout the universe, in perpetuity and in all languages, pertaining to the Work Product, including, without limitation,
all exclusive exploitation rights, of every kind and nature, including, but not limited to, all trademarks, copyrights and neighboring rights, to the full extent such assignment is allowed by law, and any renewals and extensions therefor throughout
the universe, in perpetuity, or for the duration of the rights in each country, and in all languages. Consultant acknowledges that new rights to the Work Product may come into being or be recognized in the future, under the law or in equity (the
“New Exploitation Rights”), and Consultant intends to and does hereby grant and convey to Company any and all such New Exploitation Rights to the Work Product. Consultant is also aware and acknowledges that new or changed
technology, uses, media, format, modes of transmission and methods of distribution, dissemination, exhibition or performance (the “New Exploitation Methods”) are being and will inevitably continue to be developed in the future,
which would offer new opportunities for exploiting the Work Product. Consultant intends to and does hereby grant and convey to Company any and all rights to such New Exploitation Methods with respect to the Work Product. Consultant agrees to
execute, at any time upon Company’s request, such further 

  

 3 

 
documents and do such other acts as may be required to evidence or confirm Company’s exclusive ownership of and exploitation rights to the Work Product
and to effectuate Consultant’s purpose to convey such rights to Company including, but not limited to, the New Exploitation Rights and any and all of the New Exploitation Methods. Consultant agrees that it will not seek to (i) challenge,
through the courts, administrative governmental bodies, private organizations or in any other manner, the rights of Company to exploit the Work Product by any means whatsoever or (ii) thwart, hinder or subvert the intent of the preceding grants
and conveyances to Company, or the collection by Company of any proceeds relating to the rights conveyed under this Agreement. The provisions of this paragraph shall survive the expiration or sooner termination of this Agreement. 
 5. This Agreement is for the personal services of Consultant and may not be subcontracted or assigned by Consultant in any fashion, whether by operation
of law, or by conveyance of any type, without the prior written consent of Company, which consent Company may withhold in its sole discretion. Company may not assign all or any portion of this Agreement at any time to any of its affiliates or to any
other person. 
 6. (a) Consultant, by virtue of this Agreement, shall acquire no right to use, and shall not use, the name
“Disney” or “ABC” or “American Broadcasting Companies” or “ESPN” or any other word, mark, or name used for, or in connection with, the business activities of Company (either alone or in conjunction with or as
a part of any other word, mark, or name) or any marks, fanciful characters or designs of the Company or any of their related, affiliated, or subsidiary companies in any advertising, publicity, or promotion; to express or imply any endorsement by
Company or any of their related, affiliated or subsidiary companies of Consultant’s services; or in any other manner whatsoever (whether or not similar to the uses hereinabove specifically prohibited). Consistent with his obligations under
Paragraph 7, this Paragraph 6(a) shall not prevent Executive from using such names to describe his activities with respect to Company and its subsidiaries under and prior to the Employment Agreement and under this Agreement. 
 (b) Consultant hereby represents and warrants to Company that as of the date of this Agreement, Consultant does not provide any services (including,
without limitation, as an employee) to any person or entity that (i) is engaged in, or whose affiliated entities are engaged in, one or more of the Specified Activities or (ii) advises or provides consulting services to any person or
entity that is engaged in, or whose affiliated entities are engaged in, any business or activity relating to or constituting one or more of the Specified Activities. Consultant further represents and warrants to Company that he shall make written
disclosure to Company prior to providing any services, during the term of this Agreement, to any of the above mentioned persons or entities. 
 7. Consultant may, during the course of Consultant’s engagement hereunder, have access to, and acquire knowledge of or from, materials, data, strategies, systems or other information relating to the services hereunder or Company, or
its parent, related, 

  

 4 

 
affiliated or subsidiary companies, which may not be accessible or known to the general public (including, but not limited to, the existence of this
Agreement and the terms hereof and any Work Product not readily available to the general public) (“Confidential Information”). Any such knowledge acquired by Consultant shall be kept confidential and shall not be used, published, or
divulged by Consultant to any other person, firm, or corporation, or in any advertising or promotion regarding Consultant or Consultant’s services, or in any other manner or connection whatsoever without first having obtained the prior written
permission of Company, which permission Company may withhold in its sole discretion; provided that Consultant shall have no greater duty or obligation in respect of such Confidential Information than applies to Executive under Paragraph 7(b) the
Employment Agreement. Upon Company’s request, Consultant shall immediately return to Company or destroy, all documents, magnetic copies, or other physical evidence of all Confidential Information in Consultant’s possession or in the
possession of any of Consultant’s directors, officers, employees, agents or representatives (including, without limitation, all copies, transcriptions, notes, extracts, analyses, compilations, studies, or other documents, records, or data
prepared by Consultant) which contain or otherwise reflect or are generated from the Confidential Information without retaining any copy thereof, all of the foregoing being Confidential Information and the sole property of Company, Consultant shall
certify to Company that all of the foregoing has been returned or destroyed as provided in this paragraph. Consultant agrees that Company would be irreparably harmed by any violation or threatened violation of this paragraph and that, therefore,
Company shall be entitled to an injunction prohibiting Consultant from any violation or threatened violation of this paragraph. The provisions of this paragraph shall survive the expiration or sooner termination of this Agreement. 
 8. This Agreement shall be construed and interpreted in accordance with the laws of the State of California without regard to conflicts of laws
principles. 
 9. The terms and provisions of this Agreement, the Release and Paragraphs 5 and 6 of the Employment Agreement constitute
the entire agreement between the parties hereto with respect to the subject matter of this Agreement and supersede all previous communications, representations, or agreements, either oral or written, between the parties relating to such subject
matter hereof. No change, alteration or modification of this Agreement shall be effective unless made in writing and signed by both parties hereto. 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. 
  

									
	COMPANY	 		 	Consultant
					
	By:	 	  
	 		 	By:	 	  

	Title:	 		 		 		 	

  

 5 

 EXHIBIT B 
 GENERAL RELEASE 
 WHEREAS, Kevin A. Mayer (hereinafter referred to as
“Executive”) and The Walt Disney Company (hereinafter referred to as the “Company”) are parties to an Employment Agreement, dated
                        , 2008, (the “Employment Agreement”), which provided for Executive’s employment
with the Company on the terms and conditions specified therein; and 
 WHEREAS, pursuant to paragraph 6 of the Employment Agreement,
Executive and the Company have agreed to execute mutual releases of the type and nature set forth in this Agreement; 
 NOW, THEREFORE, in
consideration of the premises and mutual promises herein contained and for other good and valuable consideration received in accordance with the terms of the Employment Agreement, it is agreed as follows: 
 1. (a) Upon the later of (i) the execution hereof by the Company and Executive, (ii) the passage of seven days following execution hereof by
Executive without Executive’s having exercised the revocation rights referred to in paragraph 12 hereof and (iii) the time specified in the Employment Agreement for payment of a particular item of compensation, the Company shall
(x) provide Executive the amounts and benefits described in Paragraph 5 of the Employment Agreement and (y) make full payment for vacation and floating holidays accrued but unused as of the date hereof, less amounts required to be withheld
by law or authorized by Executive to be withheld (it being understood that from and after the date hereof no further rights to vacation or floating holidays or compensation therefor shall accrue or be payable to Executive). Such payment shall be
made by check payable to Executive. 
 (b) The covenants and commitments of the Company referred to herein (including, specifically, but
without limitation, any and all benefits conferred upon Executive pursuant to Paragraph 5 of the Employment Agreement) shall be in lieu of and in full and final discharge of any and all obligations to Executive for compensation, severance payments,
or any other expectations of payment, remuneration, continued coverage of any nature or benefit on the part of Executive arising out of or in connection with Executive’s employment with the Company, or under any agreement, arrangement,
commitment, plan, program, practice or policy of the Company, or otherwise, other than as expressly provided in the Employment Agreement. 
 (c) Notwithstanding the foregoing or any other term or provision hereof, Executive shall be entitled to such rights as are vested in Executive as of the Termination Date, or as are expressly provided in the Employment Agreement, under and
subject to the terms of (i) the Employment Agreement, (ii) any applicable retirement plan(s) to which Executive may be subject, (iii) any applicable stock option plan or other incentive compensation plan of the Company to which
Executive may be subject, (iv) any right which Executive now has or may hereafter have to claim a defense and/or indemnity for liabilities to third parties in connection with his activities as an employee of the Company or any of its affiliates
pursuant to the terms of any applicable statute, under any insurance policy, pursuant to the certificate of incorporation or bylaws or established policies of the Company or any affiliate thereof or pursuant to written agreement (including, without
limitation, the Indemnification Agreement) expressly providing for such indemnity between Executive and the Company or any affiliate thereof, and (v) any other applicable employee welfare benefit plans to which Executive may be subject.
Further, 

  

 1 

 
Executive shall be entitled to such continuation of health care coverage as is required under, and subject to, applicable law, of which Executive shall be
notified in writing after the Termination Date, provided Executive timely exercises Executive’s rights in accordance therewith. Executive understands and acknowledges that all payments for any such continued health care coverage he may elect
will be paid by him, except to the extent the Employment Agreement provides that such payments shall be made by the Company. 
 2. Executive confirms that,
on or prior to seven (7) days from the date hereof, Executive shall turn over to the Company all files, memoranda, records, credit cards and other documents and physical or personal property that Executive received from the Company or that
Executive generated in connection with his employment by the Company or that are the property of the Company. 
 3. It is the desire and intent of the
parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under law. Should there be any conflict between any provision hereof and any present or future law, such law will prevail, but the provisions affected
thereby will be curtailed and limited only to the extent necessary to bring them within the requirements of law, and the remaining provisions of this Agreement will remain in full force and effect and be fully valid and enforceable. 
 4. Executive represents and agrees (a) that Executive has to the extent he desires discussed all aspects of this Agreement with his attorney, (b) that
Executive has carefully read and fully understands all of the provisions of this Agreement, and (c) that Executive is voluntarily entering into this Agreement. 
 5. Excluding enforcement of the covenants, promises and/or rights reserved herein, Executive hereby irrevocably and unconditionally releases, acquits and forever discharges the Company and each of the Company’s
owners, stockholders, predecessors, successors, assigns, agents, directors, officers, employees, representatives, attorneys, divisions, subsidiaries, affiliates (and agents, directors, officers, employees, representatives and attorneys of such
companies, divisions, subsidiaries and affiliates) and all persons acting by, through, under or in concert with any of them (collectively “Releasees”), or any of them, from any and all charges, complaints, claims, liabilities, obligations,
promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or
unsuspected, including, but not limited to, rights arising out of alleged violations of any contracts, express or implied, any covenant of good faith and fair dealing, express or implied, or any tort or any legal restrictions on the Company’s
right to terminate employees, or any Federal, state or other governmental statute, regulation or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964, as amended, the Federal Age Discrimination In Employment Act of
1967, as amended, and the California Fair Employment and Housing Act that Executive now has, or has ever had, or ever will have, against each or any of the Releasees, by reason of any and all acts, omissions, events, circumstances or facts existing
or occurring up through the date of Executive’s execution hereof that directly or indirectly arise out of, relate to, or are connected with, Executive’s services to, or employment by the Company (any of the foregoing being an
“Executive Claim” or, collectively, the “Executive Claims”). 
  

 2 

 6. Executive expressly waives and relinquishes all rights and benefits afforded by California Civil Code
Section 1542 and does so understanding and acknowledging the significance of such specific waiver of Section 1542. Section 1542 states as follows: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 Thus, notwithstanding the provisions of Section 1542, and for the purpose of implementing a
full and complete release and discharge of the Releasees, Executive expressly acknowledges that this Agreement is intended to include in its effect, without limitation, all Executive Claims that Executive does not know or suspect to exist in
Executive’s favor at the time of execution hereof, and that this Agreement contemplates the extinguishment of any such Executive Claim or Executive Claims. 
 7. Excluding enforcement of the covenants, promises and/or rights reserved herein or in the Employment Agreement, and except as otherwise provided in the proviso at the end of this sentence, the Company, hereby irrevocably and
unconditionally releases, acquits and discharges Executive, and Executive’s heirs, assigns and successors in interest (“Executive Releasees”) from any and all charges, complaints, claims, liabilities, obligations, promises,
agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorney’s fees and costs actually incurred), of any nature whatsoever, known or unknown, suspected or
unsuspected, including, but not limited to, rights arising out of alleged violations of any contracts, express or implied, any covenant of good faith and fair dealing, express or implied, or any tort, that the Company now has, or has ever had, or
ever will have, against Executive and/or the Executive Releasees, by reason of any and all acts, omissions, events, circumstances or facts existing or occurring up through the date of the Company’s execution hereof, that directly or indirectly
arise out of, relate to, or are connected with, Executive’s services to, or employment by the Company (hereinafter referred to as a “Claim” or collectively, the “Claims”); provided, however, that,
notwithstanding any other term or provision hereof, any Claim or Claims rising out of, or resulting from, in part or whole, (i) any illegal or fraudulent act(s) or illegal or fraudulent omission(s) to act of Executive, (ii) any action(s)
or omission(s) to act which would constitute self-dealing or a breach of Executive’s confidentiality obligations to the Company or any affiliate thereof, or a breach of The Walt Disney Company and Associated Companies Confidentiality Agreement
executed by Executive, or (iii) the policy of the Board of Directors of the Company, as the same may be in effect from time to time, regarding the ability of the Company to recoup bonus or incentive payments as a result of the Company being
required to restate its financial results due to material noncompliance with financial reporting requirements under the securities laws, are hereby expressly excluded in their entirety from the foregoing release, acquittal and discharge and
are unaffected thereby (any Claim or Claims not so excluded pursuant to this proviso being hereinafter referred to as a the “Company Claim” or, collectively, as the “Company Claims”). 
 8. Except as expressly reserved herein, the Company expressly waives and relinquishes all rights and benefits afforded by California Civil Code Section 1542 and
does so understanding 

  

 3 

 
and acknowledging the significance of such specific waiver of Section 1542. Section 1542 states as follows: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 Thus, notwithstanding the provisions of
Section 1542, and for the purpose of implementing a full and complete release, acquittal and discharge of the Executive Releasees with respect to the Company Claims only, the Company expressly acknowledges that this Agreement is intended to
include in its effect, without limitation, all the Company Claims that the Company does not know or suspect to exist in the Company’s favor at the time of execution hereof, and that this Agreement contemplates the extinguishment of any such
Company Claims. Notwithstanding anything in this Release to the contrary, if at any time (whether during or after the Employment Period) the Company is required to restate its financial results due to material noncompliance with financial reporting
requirements under the securities laws, nothing in this Release shall be construed to limit the rights of the Company and the Board to seek or obtain recovery from Executive of any incentive compensation (including profits realized from the sale of
Company securities) previously paid, or the cancellation of any outstanding awards, in accordance with the terms of the Company’s policy, as in effect from time to time, regarding the ability of the Company to recoup any bonus or incentive
payments under such circumstances. 
 9. Executive understands that Executive has been given a period of 21 days to review and consider this Agreement before
signing it pursuant to the Age Discrimination In Employment Act of 1967, as amended. Executive further understands that Executive may use as much of this 21-day period as Executive wishes prior to signing. 
 10. Executive acknowledges and represents that he understands that he may revoke the waiver of his rights under the Age Discrimination In Employment Act of 1967, as
amended, effectuated in this Agreement within 7 days of signing this Agreement. Revocation can be made by delivering a written notice of revocation to General Counsel, The Walt Disney Company, 500 South Buena Vista Street, Burbank, California 91521.
For this revocation to be effective, written notice must be received by the General Counsel no later than the close of business on the seventh day after Executive signs this Agreement. If Executive revokes the waiver of his rights under the Age
Discrimination In Employment Act of 1967, as amended, the Company shall have no obligations to Executive hereunder, and this Agreement and the Employment Agreement shall have no further force and effect. 
 11. Executive and the Company respectively represent and acknowledge that in executing this Agreement neither of them is relying upon, and has not relied upon, any
representation or statement not set forth herein made by any of the agents, representatives or attorneys of the Releasees or of the Executive Releasees with regard to the subject matter, basis or effect of this Agreement or otherwise. 
  

 4 

 12. This Agreement shall not in any way be construed as an admission by any of the Company Releasees or Executive
Releasees, respectively, that any of the Company Releasee or Executive Releasee has acted wrongfully or that the Company or Executive has any rights whatsoever against any of the Company Releasees or Executive Releasees except as specifically set
forth herein, and each of the Company Releasees and Executive Releasees specifically disclaims any liability to any party for any wrongful acts. 
 13. This
Agreement shall be governed by, and construed in accordance with, the laws of the State of California. This Agreement is binding on the successors and assigns of, and sets forth the entire agreement between, the parties hereto; fully supersedes any
and all prior agreements or understandings between the parties hereto pertaining to the subject matter hereof; and may not be changed except by explicit written agreement to that effect subscribed by the parties hereto. 
 PLEASE READ CAREFULLY. THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. 
  

									
	Executed at                     , California.	 		 	
		 		 	  

					
		 		 	Dated:	 	  
	 	
					
	Executed at                     , California.	 		 		 		 	
				
		 		 	By:	 	  

		 		 	Title:	 	
					
		 		 	Dated:	 	  
	 	

  

 5License and Distribution Agreement

 Exhibit 10.37 
 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed
with the Commission. 
 License and Distribution Agreement 
 between 
 Keurig, Incorporated and Diedrich Coffee, Inc. 
 This License and Distribution Agreement (this “Agreement”) made as of the 29th day of July, 2003 by and between Keurig, Incorporated, a Delaware
corporation with its principal executive offices located at 101 Edgewater Drive, Wakefield, Massachusetts 01880 (“Keurig”), and Diedrich Coffee, Inc., a Delaware corporation with its principal executive offices located at 2144
Michelson Drive, Irvine, CA 92612 (“Diedrich”) Diedrich amends and restates the License Agreement between Keurig and Diedrich dated as of March 13, 2000. 
 Whereas, Keurig has designed, developed and patented a single-cup portion-pack hot beverage brewing process and is intending to focus on the engineering and the sales and marketing of Keurig Brewing Systems; and

 Whereas, Keurig has a specific intention to manufacture and distribute Keurig single-cup portion-pack hot beverage brewing equipment through the Away From
Home and At Home channels of distribution in the Territory; and 
 Whereas, Keurig seeks to license the manufacture and sale of K-Cups, its single-cup
portion-pack hot beverage cartridges, to coffee roasters and other hot beverage base producers in order to provide the freshest possible high quality specialty coffees and other hot beverage products together with excellent order fulfillment and
customer value; and 
 Whereas, Diedrich is recognized as a leading specialty coffee roaster with an excellent reputation for specialty coffee and customer
service and desires to manufacture K-Cups for distribution in the Away From Home and At Home channels of distribution in the Territory; and 
 Whereas,
Keurig desires to appoint Diedrich, and Diedrich desires to accept appointment, as a non-exclusive distributor of Keurig Products for the Away From Home and At Home channels of distribution in the Territory; and 
 Now, for good consideration, the value and sufficiency of which is acknowledged, the Parties agree as follows: 
  

	1.	Definitions. 

  

	1.1	Acceptable K-Cups to Standard: Acceptable K-Cups to Standard as applicable to Packaging Line acceptance tests and shipment of Diedrich K-Cups to Diedrich’s customers
shall mean K-Cups that meet the manufacturing and quality standards set forth in Section 5 of this Agreement. 

  

 Page 1 

 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and
has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	1.2	Affiliates: Any OCS Distributor or FS Distributor that is under the control of a Licensed Roaster, or is under the common control of a Licensed Roaster and a third party.
“Control” of a particular person or corporation as used in this definition shall mean the possession of power to direct or cause the direction of management policies of the corporation, whether through the ownership of voting stock, by
contract, by appointment as an executive officer or otherwise. Those OCS Distributors or FS Distributors associated with a Party as a joint venturer or a franchisee shall be deemed to be Affiliates of such Party under this Agreement.

  

	1.3	Agreement: This Agreement together with all attached exhibits and schedules. 

  

	1.4	At Home (AH): A descriptor to define coffee and other non-coffee soluble hot beverages and related products that are marketed and sold for the consumer’s use or
consumption at Home. “Home” is heretofore and hereinafter defined to be the residence of a consumer. 

  

	1.5	AH Launch: The time at which Keurig has commenced its direct sales of both Keurig AH Brewers and K-Cups to AH consumers in the Territory for the purposes of such AH
consumers’ personal use. 

  

	1.6	Away From Home (AFH): A descriptor to define coffee and other non-coffee soluble hot beverages and related products that are marketed and sold for use at a place other than
at Home. 

  

	1.7	Food Service and Retail Distributor (FS Distributor): A company that distributes hot beverage products to Food Service and Retail Locations within the Territory.

  

	1.8	Food Service and Retail Location(s): Establishments such as convenience stores, restaurants, supermarkets, hospitals, motels, sandwich shops, delicatessens, bars, bakery
shops and other similar retail outlets that purchase Keurig AFH Products from Licensed Roasters or Keurig for the exclusive purpose of on premises use and Keurig AH Products and K-Cups from Licensed Roasters or Keurig for the exclusive purposes of
on premises use or consumption or direct resale to AH consumers within the Territory. The term Food Service and Retail Locations excludes the wholesale club channel, including but not limited to Costco, Sam’s Club and BJ’s, and the office
product superstore channel, including but not limited to Staples and Office Max (“Wholesale Clubs”), unless and until Keurig sells K-Cups to such respective channel or permits any other Licensed Roaster to sell K-Cups to such respective
channel, and further excludes grocery stores in Canada until the second anniversary of the AH Launch, unless and until Keurig sells K-Cups to such channel or permits any Licensed Roaster other than Van Houtte, Inc. to sell K-Cups to such channel.

  

	1.9	Diedrich K-Cup(s): A K-Cup that contains coffee or other non-coffee soluble hot beverage base prepared and packaged by Diedrich and labeled “Diedrich Coffee”,
“Gloria Jean’s”, “Coffee People” or such other brand name as permitted by this Agreement. “Diedrich Coffee”, “Gloria Jean’s”, and “Coffee People” are registered trademarks of Diedrich.

  

	1.10	Diedrich Marks: The trade name, service marks, trademarks, and logos now or in the future owned by or licensed to Diedrich. 

  

 Page 2 

 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and
has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	1.11	K-Cup(s): A substantially impermeable, hermetically sealed, disposable portion-pack cartridge made under a license from Keurig which: (1) contains a single-cup portion
of ground coffee or other non-coffee soluble hot beverage base (tea, concentrate or mix) in a brewing chamber at least partially defined by an internally arranged permeable filter; (2) is adapted to be pierced during the brewing cycle of a
pressurized hot water brewer, which causes hot water at pressures below 30 p.s.i. to be injected into the brewing chamber for infusion with ground coffee or other non-coffee soluble hot beverage base, and to exit the brewing chamber via the filter
as brewed coffee or other non-coffee hot beverage, with the filter serving to prevent coffee grounds or other non-coffee non-soluble hot beverage base from being entrained in the exiting brewed coffee or other non-coffee hot beverage; and
(3) the brewing process takes place inside the sealed disposable cartridge. The definition of K-Cup(s) shall also include K-Pod(s). “K-Cup” is a registered trademark of Keurig. 

  

	 	1.11.1 	K-Pod(s): A disposable portion-pack cartridge made under a license from Keurig which: (1) contains a single-cup portion of ground coffee or other non-coffee soluble hot
beverage base (tea, concentrate or mix) in a brewing chamber at least partially defined by a pierceable lid and a permeable filter; (2) is adapted to be pierced through the lid during the brewing cycle of a pressurized hot water brewer, which
causes hot water at pressures below 30 p.s.i. to be injected into the brewing chamber for infusion with ground coffee or other non-coffee soluble hot beverage base, and to exit the brewing chamber via the filter as brewed coffee or other non-coffee
hot beverage, with the filter serving to prevent coffee grounds or other non-coffee non-soluble hot beverage base from being entrained in the exiting brewed coffee or other non-coffee hot beverage; and (3) the brewing process takes place inside
the disposable cartridge. 

  

	1.12	Keurig Authorized Distributor(s) (KAD(s)): A company that has an effective distribution agreement with Keurig that specifies a geographical territory and channels of
distribution. These companies purchase Keurig Products from Keurig and K-Cups from Licensed Roasters, KARDs, or Keurig for resale. Any Affiliate of a Licensed Roaster and any Roaster Distributor shall be considered a KAD. Companies whose
distribution agreements with Keurig have been terminated are not considered KADs, even if Keurig allows them to continue to purchase repair parts and K-Cups to service their installed base of Keurig Products under their terminated agreement.

  

	1.13	Keurig Authorized Re-Distributor(s) (KARD(s)): A company that has an effective distribution agreement with Keurig that specifies a geographical territory and channels of
distribution. These companies purchase Keurig Products from Keurig and K-Cups from Licensed Roasters or Keurig in bulk quantities for resale in accordance with the limitations set forth in their distribution agreements with Keurig. Companies whose
distribution agreements with Keurig have been terminated are not considered KARDs. 

  

	1.14	 Keurig Reseller(s): A company that purchases Keurig AH Products from Licensed Roasters or Keurig and K-Cups from Licensed Roasters or Keurig for the
exclusive purpose of direct resale to AH consumers within the Territory. The term “Keurig Reseller” excludes Wholesale Clubs, 

  

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 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and
has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	 	 
unless and until Keurig sells K-Cups to such respective channel or permits any other Licensed Roaster to sell K-Cups to such respective channel, and further
excludes grocery stores in Canada until the second anniversary of the AH Launch, unless and until Keurig sells K-Cups to such channel or permits any Licensed Roaster other than Van Houtte, Inc. to sell K-Cups to such channel.

  

	1.15	Keurig Brewer(s): The specialized pressurized hot water brewing equipment designed, developed and marketed by Keurig to be used in conjunction with the K-Cup.

  

	 	1.15.1 	Keurig AFH Brewer(s): Keurig Brewers that are designed primarily for use in the AFH market. Examples include but are not limited to Keurig Brewer Models B2000, B2003 and
B1000. 

  

	 	1.15.2 	Keurig AH Brewer(s): Keurig Brewers that are designed primarily for use in the AH market. An example includes but is not limited to Keurig Brewer Model B100.

  

	1.16	Keurig Brewing System: A single-cup portion-pack hot beverage brewing system using the Keurig Brewer to brew coffee and other non-coffee soluble hot beverages contained in
K-Cups by using pressurized hot water that is injected into the K-Cup. 

  

	1.17	Keurig Marks: The trade name, service marks, trademarks, and logos now or in the future owned by or licensed to Keurig. 

  

	1.18	Keurig Product(s): All products, excluding K-Cups and Packaging Lines, sold by Keurig. 

  

	 	1.18.1 	Keurig AFH Product(s): Keurig Products that are designed primarily for use in the AFH market. Examples include but are not limited to Keurig AFH Brewer Models B2000, B2003
and B1000. 

  

	 	1.18.2 	Keurig AH Product(s): Keurig Products that are designed primarily for use in the AH market. An example includes but is not limited to Keurig AH Brewer Model B100

  

	1.19	Licensed Roaster(s): A coffee roaster, tea packer or other soluble hot beverage company that Keurig licenses to manufacture, package, inventory and sell K-Cups and related
products to a territory and channel. 

  

	1.20	Office Coffee Service Distributor (OCS Distributor): A company that distributes products, including hot beverages, to Office customers within the Territory primarily for use
or consumption in the Office. 

  

	1.21	Office(s): An establishment where business, professional, manufacturing, clerical or other commercial activities are conducted and from which brewed hot beverages are brewed
on a complimentary or vended basis for immediate consumption by employees or for hospitality in connection with the business activities of the customer and not for the business objective of making a profit. 

  

 Page 4 

 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and
has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	1.22	Packaging Line(s): Equipment designed specifically to manufacture Acceptable K-Cups to Standard. 

  

	1.23	Parties: Keurig and Diedrich. 

  

	1.24	Roaster Distributor: A Licensed Roaster that has also been granted limited rights to distribute Keurig Products. 

  

	1.25	Roaster Nominated Keurig Authorized Distributor(s) (RNKAD(s)): A company that was nominated by a Licensed Roaster and has an effective distribution agreement with Keurig that
specifies a geographical territory and channels of distribution. These companies purchase Keurig Products from Keurig and exclusively the nominating Licensed Roaster’s K-Cups from the nominating Licensed Roaster, KARDs, or Keurig for resale.
Companies whose distribution agreements with Keurig have been terminated are not considered RNKADs, even if Keurig allows them to continue to purchase repair parts and K-Cups to service their installed base of Keurig Products under their terminated
agreement. 

  

	1.26	Territory: The United States and Canada; provided, however, Keurig will consider other regions proposed by Diedrich on a case-by-case basis and in Keurig’s sole
discretion. 

  

	2.	Appointment as Non-Exclusive K-Cup Manufacturer. 

  

	2.1	Grant of Licenses. 

  

	 	2.1.1	Away From Home License. Keurig hereby grants, and Diedrich accepts, a non-exclusive license to use, subject to the terms and conditions of this Agreement, Keurig’s
patents and patent applications, trademarks, copyrights, and know-how related to the Packaging Lines, K-Cups and Operating Manual to manufacture, use, produce, distribute and sell Diedrich K-Cups to and only to the following types of customers in
the Territory, provided that Diedrich shall not be permitted to sublicense its rights (the “AFH License”): 

  

	 	2.1.1.1 	Food Service and Retail Locations, Keurig, Diedrich Affiliates, and Offices; 

  

	 	2.1.1.2 	KADs, KARDs and RNKADs, it being acknowledged that Diedrich K-Cup sales to KADs, KARDs and RNKADs shall be at Diedrich’s sole discretion. 

  

	 	2.1.2	At Home License. Keurig hereby grants, and Diedrich accepts, a non-exclusive license to use, subject to the terms and conditions of this Agreement, Keurig’s patents and
patent applications, trademarks, copyrights, and know-how related to the Packaging Lines, K-Cups and Operating Manual to manufacture, use, produce, distribute and sell Diedrich K-Cups to and only to the following types of customers in the Territory,
provided that Diedrich shall not be permitted to sublicense its rights (the “AH License”): 

  

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 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and
has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	 	2.1.2.1 	AH consumers, Keurig Resellers, Food Service and Retail Locations, Keurig, and Diedrich Affiliates; 

  

	 	2.1.2.2 	KADs, KARDs and RNKADs, it being acknowledged that Diedrich K-Cup sales to KADs, KARDs and RNKADs shall be at Diedrich’s sole discretion; 

  

	 	2.1.2.3 	Notwithstanding anything contained hereinabove, Diedrich’s AH License shall not include the right to sell Diedrich K-Cups to Wholesale Clubs, unless and until Keurig sells
K-Cups to such respective channel or permits any other Licensed Roaster to sell K-Cups to such respective channel; nor shall Diedrich’s AH License to sell Diedrich K-Cups to customers that are grocery stores in Canada commence until the second
anniversary of the AH Launch, unless and until Keurig sells K-Cups to such channel or permits any Licensed Roaster other than Van Houtte, Inc. to sell K-Cups to such channel. 

  

	 	2.1.3	Subject to Diedrich’s rights to the Packaging Lines and Section 14, below, Keurig expressly reserves the right to appoint other entities as Licensed Roasters without
restriction upon the manufacture and sales of K-Cups by another entity. Keurig expressly reserves to itself the right to manufacture and sell K-Cups to any AFH or AH customer account inside or outside the Territory, provided, however, that Keurig
will not knowingly solicit Diedrich’s or Diedrich Affiliate’s AFH customers for K-Cup sales. Except as provided in Section 2.3, in no event shall Diedrich be required to produce any minimum number of K-Cups or particular flavor or
variety of K-Cup. 

  

	 	2.1.4	Keurig represents and warrants that it is the lawful owner of the intellectual property, including patent, trademark and copyright rights and proprietary interests licensed pursuant
to this Agreement, and that the manufacture and sale of K-Cups by Diedrich in accordance with the terms of this Agreement will not infringe on the rights of third parties. 

  

	 	2.1.5	Diedrich hereby grants Keurig a non-exclusive perpetual royalty-free worldwide license, including the right to sublicense, for any ideas, discoveries, inventions, changes,
improvements, and developments within the scope of the design, development, and manufacture of Packaging Lines that Diedrich may develop derived from Keurig’s Packaging Line patents, patent applications, or utilizing Keurig’s trademarks,
copyrights and confidential know-how, which excludes generally available industrial design practice (the “Proprietary Information”) during the term of this Agreement. Diedrich hereby grants Keurig a non-exclusive perpetual royalty-free
license, including the right to sublicense, for use outside of the Territory for any ideas, discoveries, inventions, changes, improvements, and developments useful to the design, development, and manufacture of Packaging Lines that Diedrich may
develop independent of Keurig’s Proprietary Information during the term of this Agreement. Unless otherwise agreed by the Parties, any such discoveries, inventions, changes, improvements, and developments that are jointly developed by Diedrich
and Keurig shall be co-owned with no duty by either Party to account to the other. 

  

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 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and
has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	 	2.1.6	Diedrich hereby grants Keurig an exclusive perpetual royalty-free license, including the right to sublicense, for any ideas, discoveries, inventions, changes, improvements, and
developments within the scope of the design, development, and manufacture of Keurig Products and K-Cups, except for as it relates to the soluble hot beverage bases Diedrich packages within K-Cups, that Diedrich may develop during the term of this
Agreement. 

  

	 	2.1.7	Diedrich shall use commercially reasonable efforts at ensuring that Keurig Resellers and Food Service and Retail Locations sell Diedrich K-Cups only to end-user consumers located
within the Territory. 

  

	2.2	Private Label K-Cup Production. 

 As provided in
Section 14, Diedrich may use the Packaging Lines for private label K-Cup production, provided that such K-Cups are sold in accordance with the provisions of Sections 2.1.1 and 2.1.2 and that the K-Cups meet all standards otherwise provided for
in this Agreement, including that all labels for private label brands contain the appropriate Keurig Marks and instructions. 
  

	2.3	Diedrich K-Cup Product Line Offering. 

 Diedrich shall
produce and sell Diedrich K-Cups in at least eight (8) varieties including blends, flavored and decaffeinated coffees, teas and other non-coffee soluble hot beverage bases for the AFH and AH market. Keurig shall have a right to purchase any of
the varieties of Diedrich K-Cups made and sold by Diedrich under Section 2.1.1. 
  

	2.4	K-Cup Pricing. 

  

	 	2.4.1	Keurig shall be able to purchase its requirements for K-Cups from Diedrich under (i) Section 2.1.1.1 for the AFH market and (ii) Section 2.1.2.1 for the AH
market based on Diedrich’s standard credit and pricing policies at a price no greater than the lowest price (including without limitation all ongoing pricing rebates and discounts) offered to other Diedrich K-Cup AFH or AH wholesale customers
other than wholly owned subsidiaries ordering like volumes of Diedrich K-Cups, provided that notwithstanding any provisions to the contrary, Keurig may resell Diedrich K-Cups without restrictions except as follows: (1) Keurig may not resell
Diedrich K-Cups to other Licensed Roasters and their Affiliates and RNKADs; (2) Keurig may not resell Diedrich K-Cups to Wholesale Clubs without Diedrich’s prior written authorization until January 1, 2005; (3) after such date,
Keurig may resell Diedrich K-Cups to, or through, Wholesale Clubs only as part of an assortment that includes more than two (2) brands. Notwithstanding the foregoing, if Keurig should desire any changes in the nature of packaging of Diedrich
K-Cups that are different from Diedrich’s standard packaging of Diedrich K-Cups, Diedrich shall in its discretion decide whether to implement such changes, provided, however, that if such changes are implemented, Diedrich shall charge Keurig
for actual additional costs or credit Keurig for actual cost savings resulting from such changes. 

  

	 	2.4.2	All sales of Diedrich K-Cups to Keurig shall be subject to the royalty payments as otherwise provided in this Agreement. 

  

 Page 7 

 Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “[* * *]” and
has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	2.5	Approved Contract Manufacturers 

  

	 	2.5.1	Keurig may, in its sole discretion, authorize Approved Contract Manufacturers (“ACM”) for the manufacture of K-Cups by Diedrich where either Keurig or the ACM may
own the Packaging Lines. In such case, Diedrich may negotiate and contract with ACM or Keurig, as appropriate, for the production of Diedrich K-Cups at such ACM. 

  

	 	2.5.2	All sales by Diedrich of Diedrich K-Cups manufactured by an ACM shall be subject to royalty payments as provided in this Agreement in respect of Diedrich K-Cups shipped by Diedrich.

  

	2.6	Agreement to Co-operate 

 All KADs and KARDs shall be
authorized by Keurig to purchase Diedrich K-Cups. 
  

	3.	Packaging Lines. 

  

	3.1	Packaging Lines for Diedrich K-Cups. 

  

	 	3.1.1	Design, Installation and Warranty. 

 Upon request from
Diedrich and in accordance with the terms of this Agreement, Keurig shall design, deliver, install and support Packaging Lines at a Diedrich site or Diedrich designated third party site located in the Territory, provided that if such designated site
is operated by a contract manufacturer for Diedrich and Keurig owns the Packaging Lines, such contract manufacturer and designated site is subject to approval by Keurig, in Keurig’s sole discretion. Diedrich shall commence use of each of the
Packaging Lines in accordance with its obligations pursuant to this Agreement upon successful completion of the acceptance test procedures below. Upon acceptance, Keurig warrants that during such time as Keurig is the owner of any Packaging Line,
and for a period of six (6) months from purchase by Diedrich of any Packaging Line, the Packaging Line shall be free of defects in design, material and workmanship, shall operate in conformity with the specifications and standards provided in
this Agreement, the Packaging Line specifications and Operating Manual and will produce Acceptable K-Cups to Standard, provided however, that such warranty shall not apply should the use by Diedrich materially differ from that which is in accordance
with the Operating Manual and specifications developed by Keurig, or due to accident, neglect, misuse or abuse or the negligence and malfeasance of Diedrich. If any Packaging Line has been in use less than six (6) months prior to purchase, the
warranty shall be increased by the number of months less than six, but in no case shall the total warranty period on any Diedrich purchased Packaging Line exceed twelve (12) months. 
 Keurig further warrants that all times during the term of this Agreement, Keurig shall manufacture and support Keurig Brewing Systems for the AFH and AH
markets using the Diedrich K-Cups produced on Packaging Lines, or Keurig shall update such Keurig-owned Packaging Lines at its expense and update such Diedrich-owned Packaging Lines at Diedrich’s expense, subject to Diedrich’s acceptance.
Keurig shall further provide 

  

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has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

 
Diedrich with access to any new Keurig Packaging Line designs for the AFH and AH markets in accordance with the terms and conditions of Section 3.3.5.

  

	 	3.1.2	Ownership of Packaging Lines. 

 So long as Keurig retains
ownership of the Packaging Lines, (i) Keurig shall retain all rights to mortgage or create a security interest, including sale/leaseback, of the Packaging Lines, (ii) Diedrich will not mortgage or create a security interest in any of the
Packaging Lines so long as Keurig retains ownership thereof, (iii) this Agreement is subject and subordinate to any loan or security agreement or master lease agreement between Keurig and its lender or lessor, as the case may be, and Diedrich
agrees to execute and deliver such instruments or documents as may be reasonably requested by such lender or lessor (at no compensation, but no expense to Diedrich) acknowledging the foregoing, including the right of such lender or lessor, in the
event of default of Keurig, to access the premises of Diedrich on reasonable notice without undue disruption of Diedrich’s other business activities to remove the Packaging Lines, and (iv) Keurig agrees to use commercially reasonable
efforts to obtain any lender’s or lessor’s agreement to recognize Diedrich’s rights in this Agreement and to give Diedrich a right of negotiation to purchase the Packaging Lines and/or assume any underlying lease in the event of
Keurig’s default under any loan or lease agreement. 
  

	 	3.1.3	Production Capacity. 

 Keurig warrants that during the
warranty period provided for in Section 3.1.1, the Packaging Lines shall be capable of yielding Acceptable K-Cups to Standard at a minimum production rate capacity of 100 K-Cups per minute of run time, with a commercial tolerance of total
rejects of less than 5% per production run provided the Packaging Lines are operated in accordance with the Operating Manual. Production run capacity shall be determined by analysis of no less than one (1) month’s data collected as
per the form attached as Schedule 3.1.3 during a period when a Packaging Line was available for production, and labor, raw materials and utilities were available. In the event that Diedrich’s analysis of production capacity discloses a
substandard performance rate or yield of Acceptable K-Cups to Standard, Diedrich shall notify Keurig that it is exercising its rights pursuant to Section 3.1.6 below. During the warranty period provided for in Section 3.1.1 Diedrich shall
generate and maintain for one (1) year Packaging Line production records and make them available for review by Keurig on reasonable notice during normal business hours. 
  

	 	3.1.4	Delivery and Acceptance Testing. 

 Keurig is responsible
for the delivery and installation of Packaging Lines owned or produced by Keurig at Diedrich. As soon as practical after Keurig’s installation of a Packaging Line, Keurig will notify Diedrich that the Packaging Line is ready for K-Cup
production by Diedrich staff. Within 10 business days of Keurig’s notice, Diedrich shall commence a 5-day test period (consisting of two (2) eight-hour shifts per day) in order to evaluate K-Cup manufacturing rate and yield. When the
Packaging Line shall have performed for a 5-day period (consisting of two (2) eight-hour shifts per day) with a speed no less than 100 K-Cups per minute of run time and total rejects less than 5% of 

  

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the test production run, as reflected in production run forms substantially in the form as provided in Schedule 3.1.3, the Packaging Line shall be deemed
accepted by Diedrich. Diedrich shall confirm such acceptance in writing to Keurig without unreasonable delay. 
 Prior to acceptance of the
Packaging Line by Diedrich, and during any repair period under Section 3.1.6 or Section 3.2.4, Keurig shall be responsible for all direct Diedrich labor and raw materials costs and expenses, including the cost of utilities and nitrogen.
Labor and component materials (cups, lids, filters, coffee, cartons and boxes) used in the testing of any Packaging Line will be charged to Keurig at Diedrich’s actual cost. Usable materials will be returned to Diedrich, and Diedrich will
credit Keurig for returned materials at the amount of returned materials times unit cost charged. Finished Diedrich K-Cups will be credited to Keurig at “transferred quantity” from the applicable “PL Production Report” times the
sum of the component materials’ standard cost, labor and overhead rates (the total cost credited to Keurig should equal the then-current standard cost reflected in Diedrich’s inventory valuation for Diedrich K-Cups). Keurig will pay to
Diedrich within thirty (30) days of invoice therefore all costs provided under this Section 3.1.4, and Diedrich shall apply appropriate credits to Keurig within thirty (30) days of acceptance or completion of warranty repair, as
applicable. 
 The Parties agree that the two Packaging Lines currently installed at Diedrich (Castroville Plant Packaging Lines commonly
referred to as PL’s #6 and #7) have been accepted by Diedrich in accordance with this Section 3.1.4. 
  

	 	3.1.5	Diedrich Responsibilities for Space and Utilities. 

 Keurig
will advise Diedrich as to space and utility requirements (including power, air, nitrogen and foundations) for the Packaging Lines. At its cost, Diedrich will have the Diedrich site prepared to Keurig’s installation specifications. Installation
of Packaging Lines will be provided by Keurig with component parts assembled, electrically wired, software loaded, nitrogen connected and operationally prepared for acceptance testing as provided for in Section 3.1.4. 
  

	 	3.1.6	Repair or Removal of Accepted Packaging Lines. 

 In the
event of notice from Diedrich that, during the warranty period provided for in Section 3.1.1, the performance rates or yields of Acceptable K-Cups to Standard for any accepted Packaging Line is not in conformity with the representations and
warranties of Keurig per this Agreement, Keurig shall attempt to repair the Packaging Line in accordance with Section 3.2.4. In the event that the Packaging Lines cannot be repaired by Keurig within forty-five (45) days of notice to
produce Acceptable K-Cups to Standard at the performance rate and yield as warranted by Keurig, Keurig shall replace such Packaging Lines with conforming Packaging Lines, time being of the essence. Furthermore, if any Keurig owned Packaging Line
fails to meet performance rates or yields in accordance with Section 3.1.3 more than three (3) times in any twelve month period when operated in conformity with the Operating Manual and non-conformities are outside the scope of resolution
by Diedrich’s certified Packaging Line maintenance staff, Keurig shall replace that Packaging Line, time being of the essence. Diedrich shall have 

  

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highest priority on installation of new Packaging Lines necessitated by repeated failures as provided in this Section 3.1.6. 
  

	3.2	Maintenance. 

 During such time as Keurig shall be the
owner of any Packaging Line, and for the warranty period as otherwise provided in this Agreement following purchase by Diedrich of any Packaging Line, Keurig shall maintain the Packaging Line consistent with its obligations as the Packaging Line
owner as follows: 
  

	 	3.2.1	Manual. 

 Keurig shall provide a Packaging Line Operating
Manual (heretofore and hereinafter “Operating Manual”) outlining, among other things, machine operating capabilities and limitations, as well as appropriate servicing and operating instructions for the training of and use by
Diedrich Packaging Line operators, inspectors and maintenance personnel, which machine capabilities shall be consistent with the standards and specifications as provided herein. The Operating Manual shall include trouble-shooting and repair
procedures as well as instructions specifying when Keurig maintenance personnel must be used. The Operating Manual will also delineate basic skills necessary for maintenance technician certification. Regardless of whether Keurig or Diedrich owns the
Packaging Lines, Diedrich will use commercially reasonable efforts to operate such Packaging Lines in conformity with such Operating Manual, and shall notify Keurig as soon as possible of any non-conformity to performance rates or yields of
Acceptable K-Cup to Standards resulting from defects in the Packaging Line and system failures, and Keurig shall promptly correct the same, time being of the essence. Keurig agrees to update the Operations Manual from time to time as required to
keep the information current and relevant to the installed Packaging Lines. Included in the Operating Manual will be phone and/or beeper numbers with 24 hour per day coverage by Keurig. 
  

	 	3.2.2	Training and Certification of Diedrich Packaging Line Operators, Quality Control Inspectors and Maintenance Staff. 

 Keurig’s engineering staff will provide training to and certification of Diedrich trainers at no cost to Diedrich for an appropriate number of
trainers given the number of Packaging Lines operational at Diedrich and the number of operating shifts required to meet Diedrich K-Cup production demands. Keurig will certify or de-certify Diedrich trainers who respectively meet or fail Keurig
certification criteria and processes (the “Certification Criteria”), as established in Operating Manual. Keurig will certify all Diedrich trainers who Keurig, in its reasonable business judgment, determines to have become
knowledgeable to train others. Certified Diedrich trainers will be responsible for training and certifying all operators, quality control inspectors and maintenance employees of Diedrich. Regardless of whether Keurig or Diedrich owns the Packaging
Lines, Diedrich agrees to operate and maintain the Packaging Lines with certified operators, maintenance workers and quality control inspectors. 
  

	 	3.2.3	Routine and Scheduled Maintenance; Non-routine Maintenance. 

  

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 Diedrich will develop and implement routine and scheduled maintenance programs for the Packaging
Lines. As defined in the Operating Manual, non-routine maintenance and repair will be performed by Keurig or its agents under Keurig’s direction and at Keurig’s expense. Keurig shall also repair or replace any component of the Packaging
Lines that cannot be repaired by certified Diedrich maintenance personnel after commercially reasonable efforts. Diedrich agrees to provide storage and protection from pilferage for Keurig-owned spare parts required for support of the Packaging
Lines. During the warranty period provided for in Section 3.1.1, Diedrich will generate and maintain for one (1) year Packaging Line maintenance records and make them available for review by Keurig on reasonable notice during normal
business hours. 
  

	 	3.2.4	Keurig Resolution of Packaging Line Failures. 

 Keurig
shall respond on-site to Packaging Line failures that are outside the scope of resolution by Diedrich’s certified Packaging Line maintenance staff by the end of the next business day following Diedrich’s notice to Keurig of an operational
problem. Business day shall be defined as a day in which Diedrich would normally be operating its manufacturing facility to package Diedrich K-Cups. 
 Notwithstanding the foregoing, in the event that the failure occurs outside of the warranty period or is the result of improper, negligent, or malicious interference or operation, including but not limited to improper maintenance, failure
to comply with procedures as provided for in the Operating Manual or other Diedrich negligence, Diedrich will reimburse Keurig for its actual costs to resolve the failure in accordance with Schedule 3.2.4. 
 The Parties agree that in the event they cannot after good faith negotiation agree as to responsibility for any system failure, in lieu of either Party
asserting a right to terminate for breach, the question shall be submitted for resolution to arbitration as otherwise provided in this Agreement. 
  

	3.3	Determination of Packaging Line Requirements; Upgrades to Packaging Lines. 

  

	 	3.3.1	Determination of Packaging Line Requirements. 

 As long as
Keurig owns the Packaging Lines, Keurig shall deliver, install and support, in accordance with the terms of this Agreement additional Packaging Lines as follows: 
  

	 	3.3.1.1 	 The Parties agree to co-operate in forecasting Diedrich K-Cup demand and production requirements each quarter on a rolling twelve-month forward-looking basis. Upon
request Keurig shall provide Diedrich with an estimate of planned Keurig Brewer shipments in the Territory, as well as its estimates of cumulative Keurig Brewer shipments during that period on a monthly basis. Upon request Keurig shall also provide
an estimate of total K-Cup shipments during each period as well as a forecast of Diedrich K-Cups during each period. Using this data, Diedrich shall make its estimate of Diedrich K-Cup shipments for the forecasted period(s) and provide its forecast
of Diedrich K-Cup shipments to Keurig. The Parties shall then 

  

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make a best effort at determining a mutually acceptable Diedrich K-Cup forecast for the period(s). In the event of any disagreement as to the results of the
forecast process that cannot be resolved by the Parties negotiating in good faith, the Parties agree to submit the question to arbitration as otherwise provided in this Agreement. 
  

	 	3.3.1.2 	Once the Parties have agreed to a twelve month forward-looking Diedrich K-Cup forecast of demand in accordance with this section, the number of Packaging Lines required to meet
demand shall be calculated as follows: (a) each Packaging Line shall be assumed to have a production capacity of 2,000,000 K-Cups per Packaging Line per calendar month; and, (b) the monthly demand divided by 2,000,000 shall be the number
of Packaging Lines required to meet demand requirements for each month during the forecast period. Fractions of Packaging Lines above four-tenths (.4) shall be rounded up to one (1); otherwise fractions shall be reduced to zero (0).

  

	 	3.3.1.3 	If during any month of the forecast period Diedrich has fewer Packaging Lines installed than the calculated number of Packaging Lines required to support demand, Keurig shall within
thirty (30) days initiate steps to procure one or more Packaging Lines to satisfy Diedrich’s monthly needs on a timely basis. Notwithstanding the foregoing, if Diedrich’s actual demand is less than total production capacity as
calculated above, Keurig shall not be required to install additional Packaging Lines at Diedrich. If, during any five (5) of six (6) consecutive months of the forecast period Diedrich has more Packaging Lines installed than the calculated
number of Packaging Lines to be provided by Keurig, Keurig shall upon thirty (30) days’ written notice have the right to remove the number of excess Packaging Lines at Keurig’s expense, which following removal may be used at another
Licensed Roaster’s facility. 

  

	 	3.3.1.4 	The Parties agree to discuss in good faith the most appropriate Packaging Line model for installation with regard to Diedrich’s then current and projected volumes and
Keurig’s then current technology and tooling specifications. However, Keurig shall not be required to remove existing Packaging Lines unless the Keurig Brewing System changes or the Packaging Lines are defective as determined pursuant to
Section 3.1.6. 

  

	 	3.3.2	Nothing in this Agreement precludes Keurig from selling to, leasing to or installing Packaging Lines at other Keurig customers, manufacturers or licensees, or for operation directly
or indirectly by Keurig. 

  

	 	3.3.3	Nothing in this section shall preclude Diedrich from ordering, purchasing, and installing additional Packaging Lines in its sole discretion, and Keurig shall sell Diedrich such
additional Packaging Lines, in accordance with the terms of Section 4 following purchase of Packaging Lines already installed by Keurig for use by Diedrich in accordance with the terms of Section 4. 

  

	 	3.3.4	Order and Delivery Lead Times. 

  

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 The Parties understand that procurement and installation of subsequent Packaging Lines may take 8 to
10 months, provided that Diedrich shall have rights to upgrades and replacements on an expedited schedule where otherwise specifically provided in this Agreement. 
  

	 	3.3.5	Packaging Line Upgrades. 

 Keurig agrees to inform Diedrich
of Packaging Line upgrades and design improvements made by Keurig that have a material impact on machine speed, uptime and yield. The Parties agree to evaluate in good faith the desirability and feasibility of upgrading installed Packaging Lines or
installing improved Packaging Lines from time to time, provided that Keurig agrees that Diedrich shall have access to such upgrades and improvements on a basis no less favorable than those offered to other Licensed Roasters selling like K-Cup
volumes in the AFH or AH market. Any Packaging Line upgrades or design improvements shall be at Keurig’s expense and at Keurig’s discretion while it owns the Packaging Lines and at Diedrich’s expense and at Diedrich’s discretion
if Diedrich owns the Packaging Lines. 
  

	3.4	OSHA Compliance. 

 Keurig shall comply with all OSHA and,
depending on the state in which the PL is operated, the state equivalent safety regulations pertaining to the product and system designed and constructed by it, or its consultants, sub-contractors and agents, and the installation thereof, and
warrants that the operating instructions provided in the Operating Manual shall be in compliance with such regulations. Diedrich shall make its best efforts to support Keurig’s compliance with OSHA and state regulations as set forth in the
preceding sentence. 
  

	4.	Option to Purchase or Manufacture Packaging Lines; Future Products. 

  

	4.1	Option to Purchase Installed Packaging Line(s). 

 Keurig
grants Diedrich the option to purchase all, and not less than all, Packaging Lines (including at Diedrich’s option any Keurig-owned Packaging Line related assets) installed by Keurig for use by Diedrich at a price calculated as follows:
Keurig’s actual original equipment purchase price as reflected in vendor invoices multiplied by [* * *]% and, using a residual value after [* * *] months of [* * *]% of this calculated value, less depreciation of
the net amount calculated on a straight line basis over [* * *] months following acceptance of the Packaging Line by Diedrich, or if a used Packaging Line, acceptance of the Packaging Line by another Licensed Roaster. Such pricing includes
the Packaging Line, freight-in, installation, staff training, technical support through the passage of the acceptance test and the warranty provided for in Section 3.1.1. Terms of sale for new Packaging Lines shall be in accordance with
Schedule 4.1. Upon purchase of all Packaging Lines by Diedrich, any additional Packaging Lines provided by Keurig shall also be sold to Diedrich under the provisions of this section. The option to purchase Keurig-owned Packaging Line related assets
expires one day after the initial purchase of the Packaging Lines. Keurig shall remove any Keurig-owned Packaging Line related assets not so purchased within 45 days after the purchase of the Packaging Lines. 
  

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 While Diedrich can buy spare parts from Keurig at cost plus [* * *]%, Keurig will permit
Diedrich to purchase parts directly from Keurig approved manufacturers including the Packaging Line manufacturers at a price determined by such manufacturer. Keurig’s spare parts program is intended to be a convenience to its Licensed Roasters.

 Packaging Line purchase by Diedrich shall include a grant of a non-transferable and non-exclusive license to use in connection with the
purchased Packaging Lines, Keurig’s Proprietary Information related to the purchased Packaging Lines and K-Cups produced thereon, as well as access to its manufacturer’s for replacement parts, in accordance with the terms of this
Agreement. Diedrich understands that it has no right to manufacture or sell K-Cups designed for use in Keurig Brewers after the termination of this Agreement, except as provided for in Section 15.3.2. 
 Diedrich may sell or transfer purchased Packaging Lines to a third party (“Transferee”), provided, however, that if such Transferee is
not a Licensed Roaster, as an express condition of the effectiveness of such sale or transfer Diedrich shall obtain and deliver to Keurig written representation from the Transferee acknowledging that only Licensed Roasters are authorized to
manufacture K-Cups and unauthorized manufacture of K-Cups would be in violation of Keurig’s patents and other proprietary rights entitling Keurig to injunctive relief in addition to any other rights and remedies. Diedrich shall provide Keurig
with the contact information and intended use of the Packaging Lines for any such Transferee. 
 Notwithstanding the other provisions of
Section 4, the Parties hereby acknowledge that Diedrich has already purchased the two (2) Packaging Lines installed by Keurig for use by Diedrich (commonly referred to as Packaging Lines #6 and 7) in accordance with the Equipment Purchase
Agreement between the Parties dated April 11, 2003. 
  

	4.2	Diedrich Option to Design and Develop Packaging Lines. 

 Subsequent to the purchase of installed Packaging Lines by Diedrich as set forth in Section 4.1, Keurig grants Diedrich the option to independently design and develop its own Packaging Lines that will not be subject to the provisions
of Section 3 of this Agreement. All K-Cups produced on these Packaging Lines will be subject to the same quality standards as set forth in Section 5 and the same royalty rate schedule as set forth in Section 6 of this Agreement.

  

	 	4.2.1	Collaborative Packaging Line Development Activity. 

 Upon
Diedrich’s request, Keurig agrees to enter into good faith discussions relating to establishing a collaborative activity to support Diedrich’s interest in designing and developing its own Packaging Lines. Both Parties agree that any such
collaborative activity will be defined in a separate written agreement that sets forth the scope of development activity and ownership of intellectual property (including inventions, patentable or not) that directly results from activity.

  

	 	4.2.2	Non-Exclusive Licensing of Keurig’s Intellectual Property. 

 Upon Diedrich’s request, Keurig agrees to enter into good faith discussions to provide Diedrich with a non-exclusive license to the Proprietary Information associated with the 

  

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manufacture of Packaging Lines including shop drawings and access to its current and past Packaging Line manufacturers that are otherwise prohibited from
manufacturing Packaging Lines for customers other than Keurig. Diedrich agrees that all Packaging Lines manufactured by Diedrich or its agents using Keurig’s Proprietary Information shall be used exclusively in its or its contract
manufacturer’s facilities and not sold to others during the term of this Agreement. Any time and materials used by Keurig to support Packaging Line design, development and installation shall be paid for by Diedrich on a time and materials basis
in accordance with a separate written agreement that sets forth the scope of support activity required. 
  

	5.	Acceptable K-Cups to Standard. 

 Diedrich shall only
sell K-Cups produced in conformity with the criteria set forth in this Section. Nothing in this Section 5 shall be construed to relieve Keurig of its obligation to provide Packaging Lines capable of producing Acceptable K-Cups to Standard.

  

	5.1	Freshness and Quality of Coffee, Tea and Other Soluble Hot Beverage Products. 

  

	 	5.1.1	Coffee: Diedrich will develop testing procedures to assure quality control over the production process. Among other tests, Diedrich shall have its coffee taste testers compare the
same type of coffee brewed in Diedrich K-Cups and Keurig Brewers versus conventional drip brewing systems with the objective of providing equal or superior taste quality levels via the Keurig Brewing System as judged by Diedrich. Keurig may neither
use nor disclose Diedrich’s proprietary testing procedures with or to another Licensed Roaster without Diedrich’s prior written approval, which approval may be withheld in the sole discretion of Diedrich. 

  

	 	5.1.2	Tea: Diedrich will develop testing procedures to assure quality control over the production process. Among other tests, Diedrich shall have its tea taste testers compare the same
type of tea brewed in Diedrich K-Cups and Keurig Brewers versus conventional tea brewing techniques with the objective of providing equal or superior taste quality levels via the Keurig Brewing System as judged by Diedrich. Keurig may neither use
nor disclose Diedrich’s proprietary testing procedures with or to another Licensed Roaster without Diedrich’s prior written approval, which approval may be withheld in the sole discretion of Diedrich. 

  

	 	5.1.3	Other Soluble Hot Beverage Products: Diedrich will develop testing procedures to assure quality control over the production process. Among other tests, Diedrich shall have its taste
testers compare the same type of soluble hot beverages brewed other than coffee or tea (including herbal teas) (“Other Soluble Hot Beverage Products”) in Diedrich K-Cups and Keurig Brewers versus conventional beverage preparation
techniques with the objective of providing equal or superior taste quality levels via the Keurig Brewing System as judged by Diedrich. Keurig may neither use nor disclose Diedrich’s proprietary testing procedures with or to another Licensed
Roaster without Diedrich’s prior written approval, which approval may be withheld in the sole discretion of Diedrich. 

  

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	5.2	Amount of Coffee, Tea or Other Soluble Hot Beverage Products Packaged in K-Cup. 

  

	 	5.2.1	Coffee: For Diedrich K-Cups filled with coffee, such K-Cups are filled with the standard amount of ground coffee for each type of coffee, provided that the standard amount and grind
shall be set by and on occasion adjusted by Diedrich subject to bean type, flavor and optimal roasting guidelines as determined by Diedrich’s professional taste testers to provide optimal taste consistent with the requirements of
Section 5.1.1. Diedrich in its discretion shall establish the high/low range around the standard amount. In no case may Diedrich pack less than 7.0 grams of coffee in a Diedrich K-Cup without express approval of Keurig.

  

	 	5.2.2	Tea: For Diedrich K-Cups filled with tea, such K-Cups are filled with such quantity of tea to provide a flavor profile consistent with the requirements of Section 5.1.2.
Diedrich in its discretion shall establish the high/low range around the standard amount. In no case may Diedrich pack less than 4.0 grams of tea in a Diedrich K-Cup without express approval of Keurig. 

  

	 	5.2.2.1	If Diedrich uses certain approved lid and cup raw materials as specified by Keurig, such minimum fill weight shall be reduced from 4.0 grams of tea to 2.7 grams of tea. Currently,
Keurig has specified such approved raw materials as set forth in Schedule 5.6. 

  

	 	5.2.3	Other Soluble Hot Beverage Products: For Diedrich K-Cups filled with Other Soluble Hot Beverage bases, such K-Cups are filled with such quantity of Other Soluble Hot Beverage base
to provide a flavor profile consistent with the requirements of Section 5.1.3. Diedrich in its discretion shall establish the high/low range around the standard amount. In no case may Diedrich pack less than a specified minimum of Other Soluble
Hot Beverage base as determined by Keurig in its sole discretion on a beverage-by-beverage basis. 

  

	5.3	Filter Weld Integrity. 

 Diedrich will operate and maintain
the Packaging Lines so as to produce Diedrich K-Cups that do not experience filter paper to filter paper seam or filter paper to cup rim weld tears or breaks when used as part of the Keurig Brewing System. Filter weld integrity shall be evaluated in
accordance with the QCS testing set forth in Section 5.7 and Schedule 5.7.4. A failure of the Diedrich K-Cup filter weld integrity shall be defined as when the K-Cup brewing process results in more than three coffee or tealeaf grounds being
present in the brewed coffee or tea. 
  

	5.4	Dating, Shelf Life and Oxygen Impermeability for Coffee, Tea and Other Soluble Hot Water Beverages. 

  

	 	5.4.1	 All Diedrich K-Cups filled with coffee will contain a consumer readable Best Used By Date (“BUBD”) label that shall not be longer than
[* * *] during which the Diedrich K-Cup is manufactured, unless specific approval is granted by Keurig based on testing 

  

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results provided by Diedrich. Diedrich K-Cups filled with coffee shall contain less than 3% oxygen. 

  

	 	5.4.2	All Diedrich K-Cups filled with tea (including herbal tea) will contain a consumer readable BUBD label that shall not be longer than [* * *] during which the Diedrich
K-Cup is manufactured, unless specific approval is granted by Keurig based on testing results provided by Diedrich. Diedrich K-Cups filled with tea (including herbal tea) are not subject to an oxygen content limitation. 

  

	 	5.4.3	For all Diedrich K-Cups filled with Other Soluble Hot Beverage bases, Keurig in its sole discretion shall establish an appropriate BUBD and oxygen content specification that
corresponds to at least a [* * *]. 

  

	5.5	Lid Seal Integrity. 

 Diedrich will operate and maintain
the Packaging Lines so as to produce Diedrich K-Cups that do not experience lid stock to cup seal weld tears or breaks when used as part of the Keurig Brewing System. Diedrich K-Cups shall be able to withstand a vacuum pressure of 18 to 21 inches of
mercury for 30 seconds without having a failure of the lid stock to cup seal integrity. 
  

	5.6	K-Cup Raw Material Vendor Selection. 

 Diedrich shall
require that all raw material suppliers conform to specifications as provided by Keurig for cups, lid stock, filter paper and filter paper conversion, and other raw material that Keurig deems critical to producing Acceptable K-Cups to Standard.
Keurig may reasonably establish different raw material standards and specifications for packaging coffee, tea and other soluble hot beverages in K-Cups. Keurig shall supply Diedrich with any updated specifications and standards for optimal operating
efficiency of the Packaging Lines. Diedrich shall only use K-Cup raw materials from Keurig qualified sources to manufacture Diedrich K-Cups. Schedule 5.6 shows approved vendors as of the date of this Agreement for each raw material required for
packaging coffee and tea. 
  

	5.7	K-Cup Functionality. 

 Diedrich shall be responsible for
ensuring that final assembled Diedrich K-Cups properly brew and function when operated with all Keurig Brewers for which the Diedrich K-Cup is intended to be used. Proper functionality of final assembled Diedrich 
 K-Cups includes but is not limited to K-Cup lid and bottom puncturability, and if a feature of a Keurig Brewer, proper K-Cup ejection. 
  

	 	5.7.1	For each variety of coffee to be packaged in K-Cups, proper functionality shall be defined as meeting the Quality Control System (“QCS”) set forth in
Section 5.7.4 during each production run. 

  

	 	5.7.2	 In addition to the QCS set forth in Section 5.7.4, for each variety of tea (including herbal tea) to be packaged in K-Cups, proper functionality shall be
defined to also include having failure rates below 1 per 200 for K-Cups not ejecting from the K-Cup holder in 

  

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Keurig Brewers designed to automatically eject K-Cups and 1 per 1,000 for K-Cups sticking to the inlet needle after the brewing process is completed of
any Keurig Brewer. Keurig’s approval of K-Cups packaged with tea (including herbal tea) shall be based on satisfaction of the packaging and testing procedures as described in Schedule 5.7.2. 

  

	 	5.7.3	In addition to the QCS set forth in Section 5.7.4, for each variety of Other Soluble Hot Beverage bases to be packaged in K-Cups, Keurig in its sole discretion will establish
K-Cup functionality criteria by Keurig Brewer model. 

  

	 	5.7.4	Quality Control System 

  

	 	5.7.4.1 	Diedrich is responsible for making a best effort to implement the QCS related to the production and sale of Diedrich K-Cups. 

  

	 	5.7.4.2 	A Certified Quality Control Inspector (“CQCI”) will implement QCS during every production run of Diedrich K-Cups. Diedrich agrees to use a CQCI, in accordance with
Section 3.2, regardless of whether Keurig or Diedrich owns the Packaging Lines. 

  

	 	5.7.4.3 	CQCIs will perform the following QCS testing during the production run by removing sample test K-Cups from each lane of the Packaging Line on a regular and systematic basis in
compliance with the Keurig QCS requirements set forth below and further described in Schedule 5.7.4: 

  

	 	5.7.4.3.1 	Visual inspection of test K-Cups for defects in BUBD legibility, lid seal integrity and any other obvious visual defect to ensure compliance with Sections 5.4 and 5.5.

  

	 	5.7.4.3.2 	Vacuum testing to ensure lid seal integrity is in compliance with Section 5.5. 

  

	 	5.7.4.3.3 	Oxygen content testing, if applicable, to ensure residual oxygen content after packaging is in compliance with Section 5.4. 

  

	 	5.7.4.3.4 	Brew testing to ensure K-Cup lid and bottom puncturability and internal filter weld integrity is in compliance with Section 5.3. 

  

	 	5.7.4.4 	Diedrich agrees to develop and implement procedures within 120 days of the effective date of this Agreement that enable the CQCI to halt production and segregate and test inventory
if Diedrich K-Cups do not meet QCS requirements as specified in this Section and Schedule 5.7.4. Such procedures shall be submitted to Keurig for approval, such approval not to be unreasonably withheld. The Parties acknowledge that the objective of
these procedures is to minimize the number of Brew Failures (as defined in Schedule 5.7.4) experienced by consumers when using the Keurig Brewing System in either AFH or AH applications. 

  

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	5.8	K-Pods. 

 Keurig may develop separate K-Pod functionality
standards prior to the introduction of K-Pods to the marketplace. 
  

	5.9	Out-gas Protocol. 

 Diedrich shall not package coffee in
Diedrich K-Cups sooner than twelve (12) hours after grinding, unless specific approval is granted by Keurig based on testing results provided by Diedrich. 
  

	6.	Royalties. 

  

	6.1	Calculation of Royalty. 

  

	 	6.1.1	Diedrich shall pay Keurig a royalty based on the number of Diedrich K-Cups shipped per Diedrich fiscal period (thirteen 4-week periods per year). The royalty payment shall be the
Diedrich K-Cup unit shipments, less the number of Diedrich K-Cups returned by Diedrich customers within the Diedrich K-Cup BUBD, times the combined total of the Base Royalty Rate plus any applicable Rental Royalty Rate as set forth in
Section 6.1.2. Diedrich agrees to provide Keurig a detailed report that separately specifies Diedrich K-Cup unit shipments by variety on a weekly basis for the prior week and use this as the base for the fiscal period royalty calculation and
payment. 

 The “Base Royalty Rate” of [* * *] cents shall be reduced by a Volume Incentive in
accordance with the “Royalty Rate Schedule” as set forth below and shall be calculated at the beginning of each Diedrich fiscal quarter based on the Diedrich K-Cup unit shipment volume of the immediately preceding three calendar
months, net of returns made within the Diedrich K-Cup BUBD. Such Base Royalty Rate may increase or decrease based on the prior three calendar month’s shipments in accordance with the Royalty Rate Schedule below. 
  

									
	[* * *]	  	 	  	[* * *]	 	 	  	[* * *]
	[* * *]	  	 	  	[* * *]	 	$	0.	[* * *]
			
	[* * *]	  	- $	0.	[* * *]	 	$	0.	[* * *]
			
	[* * *]	  	- $	0.	[* * *]	 	$	0.	[* * *]
			
	[* * *]	  	- $	0.	[* * *]	 	$	0.	[* * *]
			
	[* * *]	  	- $	0.	[* * *]	 	$	0.	[* * *]
			
	[* * *]	  	- $	0.	[* * *]	 	$	0.	[* * *]

 No minimum royalty payments shall be payable to Keurig, provided however, that Keurig shall not be
required to install subsequent Packaging Lines not justified by 

  

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forecasts as provided in Section 3.3.1 (unless necessitated by defects as provided in Section 3.1.6) unless the Parties have agreed to minimum
royalties. 
  

	 	6.1.2	The Rental Royalty Rate of [* * *] cents per Diedrich K-Cup shipped shall be additive to the Base Royalty Rate unless and until Diedrich purchases the Packaging Lines in
accordance with Section 4. Notwithstanding the foregoing, should Diedrich procure Diedrich K-Cups from an ACM as set forth in Section 2.5 and, if that ACM uses Keurig owned Packaging Lines to produce such Diedrich K-Cups, then Diedrich
shall pay to Keurig the Rental Royalty Rate on such Diedrich K-Cups shipped by the ACM to Diedrich or Diedrich’s customers. 

  

	6.2	Payments. 

 Diedrich shall pay all royalties due hereunder
within thirty (30) days after the date of the end of the Diedrich 4-week fiscal period for which royalties are due. 
  

	6.3	Review of Books and Records. 

 Keurig or its accountants
shall have the right to review the records and calculations prepared by Diedrich relating to royalty payments due Keurig and to ensure compliance with Section 2.4.1. Such review shall take place on reasonable written notice during regular
business hours within one year of the periods then being reviewed. 
  

	6.4	Most Favored Nation. 

  

	 	6.4.1	Royalty Parity. 

 Keurig agrees that during the term of
this Agreement the volume-based incentive royalty rate schedule set forth in Section 6.1.1 or the Rental Royalty Rate set forth in Section 6.1.2 [* * *]. Notwithstanding the provisions in Section 6.1 relating to the
calculation of the royalty payment, if Keurig should either (i) [* * *] of a current Licensed Roaster in the Territory or (ii) [* * *] for the manufacture and sale of K-Cups in the Territory and, in either case, provide
for [* * *] than set forth in Sections 6.1.1 or 6.1.2, respectively, or in effect at the time based on terms and conditions [* * *], then within fifteen (15) days of such action, Keurig will notify Diedrich of such
[* * *], either of which shall, at Diedrich’s sole discretion, automatically be deemed to apply to this Agreement effective as of the date of the adjustment under clause (i) or [* * *] under clause (ii) above, as
applicable, or such later date as shall be requested by Diedrich. Keurig agrees to provide a certification attested to by an Officer of Keurig as to such royalty rate schedule upon the request of Diedrich, but not more than once every three months.
If Keurig [* * *] for the manufacture and sale of K-Cups in the Territory and provides [* * *] than set forth in Sections 6.1.1 or 6.1.2, respectively, or in effect at the time based on terms and conditions [* * *],
then within fifteen (15) days of such action, Keurig will [* * *] and the associated Royalty Rate Schedule and 

  

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Rental Royalty Rate. Diedrich shall have thirty (30) days after receiving such offer to either accept or reject such offer in its entirety. 

 

	 	6.4.2	Royalty Alteration. 

 Diedrich agrees that Keurig has the
discretionary right to alter the Royalty Rate Schedule and Rental Royalty Rate (“Royalty Alteration”) on Diedrich K-Cups [* * *] and (5) Diedrich agrees to accept the Royalty Alteration within sixty (60) days of
receiving written notice of the Royalty Alteration. In no event shall the Royalty Alteration increase [* * *]. Should all of the foregoing conditions be met except that Diedrich does not agree to accept the Royalty Alteration within sixty
(60) days of receiving written notice of the Royalty Alteration, the then-current Royalty Rate Schedule and Rental Royalty Rate shall remain in force for two years from receiving written notice of the Royalty Alteration at which time the
Agreement shall terminate, notwithstanding the provisions of Section 15. 
  

	 	6.4.3	Review of Books and Records. 

 Once each calendar year,
Diedrich may, at its expense, have an independent auditor audit such books and records of Keurig as are necessary or appropriate to verify Keurig’s compliance with Section 6.4.1. Such independent auditor shall agree in writing to maintain
the confidentiality of all of Keurig’s records and shall be allowed only to certify to Diedrich whether or not Keurig has complied with Section 6.4.1. Such review shall take place upon reasonable written notice at a mutually agreed time
during regular business hours. 
  

	7.	Appointment as Non-Exclusive Roaster Distributor. 

  

	7.1	Away From Home. 

  

	 	7.1.1	K-Cups. Keurig appoints Diedrich and Diedrich accepts appointment as a non-exclusive Roaster Distributor to purchase, inventory, promote, distribute and sell K-Cups to and
only to the customers in the Territory set forth in Section 2.1.1. 

  

	 	7.1.2	Keurig AFH Products. Keurig appoints Diedrich and Diedrich accepts appointment as a non-exclusive Roaster Distributor to purchase, inventory, promote, distribute, sell,
lease, loan and service Keurig AFH Products to and only to Diedrich Affiliates, Offices and Food Service and Retail Locations in the Territory. 

  

	 	7.1.3	 Diedrich shall not knowingly sell K-Cups or distribute, sell, lease, loan and service Keurig AFH Products to customers located outside of the Territory or for use
outside the Territory. Diedrich shall not solicit or accept orders for any K-Cups and Keurig AFH Products from any prospective customers that are not specified in Sections 7.1.1 and 7.1.2, respectively. If Diedrich receives an order for any K-Cups
or Keurig AFH Products from a prospective customer that Diedrich is not authorized to sell to under this Section 7.1, then Diedrich shall not accept it and may, at its discretion, refer the order to Keurig. Diedrich and Diedrich Affiliates
shall also be prohibited from selling, leasing or loaning or offering to sell, lease or loan Keurig AFH Products on the Internet, including but not 

  

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limited to showing pricing for Keurig AFH Products. Notwithstanding the foregoing restriction relative to Internet sales, Diedrich and its Affiliates may
show Keurig AFH Products on their websites for the sole purpose of generating leads for AFH market development within the Territory. 

  

	 	7.1.4	Keurig agrees to accept as a Diedrich RNKAD any Diedrich nominated distributor in the Territory pledging to order at least the minimum number of Keurig AFH Brewers specified in
Keurig’s then current Roaster Nominated Distributorship Agreement but in no case shall such minimum be more than [* * *] Keurig Model B2003 Brewers (or their equivalent as determined by Keurig) per annum per sales office,
provided such distributors execute Keurig’s then current standard RNKAD agreement and meet Keurig’s credit terms. Keurig agrees that it will not actively solicit Diedrich RNKADs to distribute K-Cups produced by other Licensed Roasters
through sales introductions. 

  

	 	7.1.5	In the event that Keurig appoints another Licensed Roaster or modifies the distribution agreement terms of another Licensed Roaster to sell Keurig AFH Products to KADs, KARDs,
RNKADs, or OCS Distributors on a more favorable basis than set forth herein, Keurig shall offer Diedrich the same terms, provided that Diedrich shall have 90 days to accept or reject such other terms only in their entirety. 

 

	7.2	At Home. 

  

	 	7.2.1	K-Cups. Keurig appoints Diedrich and Diedrich accepts appointment as a non-exclusive Roaster Distributor to purchase, inventory, promote, distribute and sell K-Cups to and
only to the customers in the Territory set forth in Section 2.1.2. 

  

	 	7.2.2	Keurig AH Products. Keurig also appoints Diedrich and Diedrich accepts appointment as a non-exclusive Roaster Distributor to purchase, inventory, promote, distribute and sell
Keurig AH Products to and only to AH consumers, Keurig Resellers, Food Service and Retail Locations, Diedrich Affiliates, and Offices in the Territory. 

  

	 	7.2.3	Diedrich shall use commercially reasonable efforts at ensuring that neither it, Diedrich Affiliates, Keurig Resellers, nor Food Service and Retail Locations sell Keurig AH Products
to KADs, KARDs, RNKADs, or OCS Distributors without the express written permission of Keurig. Diedrich shall not knowingly sell K-Cups and Keurig AH Products to customers for resale or use outside of the Territory. Diedrich shall not solicit or
accept orders for any K-Cups and Keurig AH Products from any prospective customers that are not specified in Sections 7.2.1 and 7.2.2, respectively. If Diedrich receives an order for any K-Cups or Keurig AH Products from a prospective customer that
Diedrich is not authorized to sell to under this Section 7.2, then Diedrich shall not accept the order and may, at its discretion, refer the order to Keurig. 

  

	 	7.2.4	 AH Launch. Diedrich may commence sales of K-Cups and Keurig AH Products (“Diedrich AH Launch”) no earlier than the date of the AH Launch. Keurig
reserves its 

  

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rights to allocate sales of Keurig AH Products subject to availability and to delay the Diedrich AH Launch until thirty (30) days subsequent to the AH
Launch. The AH Launch is currently intended to occur on July 7, 2003. Notwithstanding the foregoing, Keurig reserves the right to test market Keurig AFH or AH Products and K-Cups to a select group of AH consumers in the Territory for the
purposes of such AH consumers’ personal use prior to the AH Launch. 

  

	 	7.2.5	In the event that Keurig appoints another Licensed Roaster or modifies the distribution or license agreement of another Licensed Roaster to sell Keurig AH Products to KADs, KARDs,
RNKADs or OCS Distributors, Keurig shall give Diedrich the same option on terms no less favorable than those offered to the other Licensed Roaster, provided that Diedrich shall have 90 days to accept or reject such other terms in their entirety.

  

	7.3	Common Sales and Distribution Provisions. 

  

	 	7.3.1	Nothing in this Agreement will restrict Keurig from appointing other distributors in any geographic area or market segment. 

  

	 	7.3.2	Diedrich shall conduct its business in the sale of Keurig Products and manufacture and sale of K-Cups as a principal for its own account solely at its own risk and expense.

  

	 	7.3.3	Diedrich’s pricing, credit and other terms of sale and distribution to Diedrich customers shall be at the sole discretion of Diedrich. 

  

	 	7.3.4	Diedrich shall pay sales, excise taxes and other governmental charges levied in respect of the resale of Keurig Products and Diedrich K-Cups by Diedrich, other than those on
Keurig’s income therefrom. 

  

	 	7.3.5	Except as expressly provided in Sections 2, 7, or 14, nothing in this Agreement shall be construed to limit Diedrich from selling any other product to any entity.

  

	8.	Keurig Product Sales. 

  

	8.1	Keurig Best Efforts. 

 Keurig will use its best efforts to
fill Diedrich orders promptly upon acceptance. 
  

	8.2	Keurig AFH Products. 

 The price of each Keurig AFH Product
sold to Diedrich shall be [* * *] FOB Keurig’s designated facility. Keurig may adjust pricing on not less than thirty (30) days’ prior written notice, provided however, that at any time during the term of this Agreement,
Keurig AFH Product prices to Diedrich shall be [* * *]. 
  

	8.3	Keurig AH Products. 

 The price of each Keurig AH Product
sold to Diedrich shall be [* * *] FOB Keurig’s designated facility. Keurig may adjust 

  

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pricing on not less than thirty (30) days’ prior written notice, provided however, that at any time during the term of this Agreement, Keurig AH
Product prices to Diedrich shall be [* * *]. 
  

	8.4	Product Offering. 

 Subject to availability and the terms
of this Agreement, Diedrich shall be able to purchase any Keurig Product that Keurig offers for sale to any third party unless such Keurig Product is specially manufactured for that third party. Notwithstanding the foregoing, Keurig reserves the
right to allocate Keurig Products to its customers. 
  

	8.5	Terms of Sale. 

 Prices are subject to applicable state,
local and federal taxes. All orders are subject to approval by Keurig at prices, terms and specifications prevailing at time of order. Merchandise, following receipt, must be unpacked and inspected to reveal concealed damage or shortage. Any
shortage or damage should be reported to Keurig and to the transportation company within 10 days of receipt. All products are sold without return privileges, subject to the warranty provisions set forth in Section 9. Any merchandise returned
for credit, exchange or repair must be returned in accordance with Section 9.4. Freight is FOB Keurig’s or its agent’s facility, at the discretion of Keurig. Title to goods passes to purchaser upon delivery from Keurig. Keurig
reserves the right to split ship orders and cancel backorders less than $50. All backorders will be shipped in 60 days or cancelled. 
  

	8.6	Payments. 

 Except as otherwise specified in
Section 6.2, payment of amounts due from Diedrich to Keurig shall be net thirty (30) days from date of invoice. All past due accounts are subject to a late charge of 1.5% per month on the unpaid overdue balance. All payments due under
this Agreement shall be drawn on a Canadian or U.S. Bank and payable in United States dollars. 
  

	8.7	Guaranty of Sales to Affiliates. 

 At Diedrich’s
discretion, Diedrich Affiliates may purchase Keurig Products and K-Cups directly from Keurig at Diedrich’s price as described in Section 8.2 and 8.3, and purchases by Diedrich Affiliates will be considered as purchased by Diedrich for the
purposes of determining such price, provided, however, that Diedrich hereby guarantees to Keurig the full and punctual payment of the amounts invoiced Diedrich Affiliates when due and their performance of all other obligations to Keurig hereunder or
in connection with such purchases (the “Guaranty”). This Guaranty is an absolute, unconditional and continuing guaranty of the full and punctual payment of all of the amounts invoiced and not of their collectibility only and, except
as expressly provided below, is in no way conditioned upon any requirement that Keurig first attempt to collect any of the amounts invoiced from the Diedrich Affiliate or resort to any collateral security or other means of obtaining payment. Should
the Diedrich Affiliate default in the payment of any of the amounts invoiced, default being defined as failure to pay the full invoiced amount within sixty (60) days of the invoice date unless contested in good faith (the
“Default”), such amounts invoiced in default shall become due and payable to Keurig by Diedrich under this Guaranty within thirty (30) days following 

  

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reception by Diedrich of a copy of the notice sent by Keurig to the defaulting Diedrich Affiliate indicating the amount that remains outstanding and for
which it is in Default. 
 The obligations of Diedrich under this Guaranty shall continue in full force and effect until Keurig has received
written notice of Diedrich’s intention to discontinue this Guaranty in full or to exclude from this Guaranty specific Diedrich Affiliates that Diedrich considers, in its sole discretion, not credit worthy: 
  

	 	•	 	 Notice to discontinue this Guaranty in full shall take effect immediately upon its reception by Keurig or such later date as Diedrich may specify in its notice.
Upon receipt of such a notice, Keurig shall have the full and unrestricted right to cancel any outstanding purchase orders for Keurig Products from any Diedrich Affiliates and to refrain from accepting any further purchase orders from such
Affiliates without liability to Diedrich or such Affiliates. 

  

	 	•	 	 Notice to exclude from this Guaranty specific Diedrich Affiliates shall take effect immediately upon its reception by Keurig. Upon receipt of such a notice, Keurig
shall have the full and unrestricted right to cancel any outstanding purchase orders for Keurig Products from such specific Diedrich Affiliate and to refrain from accepting any further purchase orders from such specific Diedrich Affiliate without
liability to Diedrich or such Affiliates. 

 In addition, no such notices shall affect the validity and effectiveness of
this Guaranty with respect to amounts invoiced by Keurig before their respective effective dates. 
 In the event that Keurig receives any
payments from Diedrich on account of its liability under this Guaranty, Diedrich shall have all rights to claim repayment from and against the defaulting Diedrich Affiliate and shall be subrogated to any and all rights of Keurig with respect to that
specific instance of default. 
 Any restrictions or other limitations on Diedrich’s right to purchase or sell Keurig Products and K-Cups
set forth in this agreement shall be binding and have the same effect on Diedrich Affiliates. 
  

	8.8	No Restrictions. 

 Keurig maintains its own sales force to
promote Keurig Products and K-Cups to customers. Nothing in this Agreement shall be construed to restrict Keurig in the resale, pricing or other terms of sale of any Keurig Product or K-Cups to any customer inside or outside of the Territory.

  

	9.	Keurig Warranty. 

 SUBJECT TO SECTION 18, THE KEURIG
PRODUCTS WARRANTY PROVISIONS SET FORTH IN THIS SECTION SET FORTH KEURIG’S SOLE LIABILITY FOR CLAIMS BASED UPON DEFECTS IN, OR FAILURE OF ANY KEURIG PRODUCTS PROVIDED HEREUNDER. SUBJECT TO SECTION 18, THESE PROVISIONS ARE DIEDRICH’S
EXCLUSIVE 

  

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REMEDIES FOR CLAIMS BASED UPON DEFECTS IN, OR FAILURE OF ANY KEURIG PRODUCTS PROVIDED HEREUNDER. KEURIG HEREBY SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES
WITH RESPECT TO KEURIG PRODUCTS SUPPLIED HEREUNDER BY KEURIG INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 
  

	9.1	Away From Home Brewers. 

 Keurig shall provide Diedrich
with a limited one-year warranty on each Keurig AFH Brewer from the date of shipment to Diedrich (the “Keurig AFH Warranty”). Keurig warrants that Keurig AFH Brewers will be free of design, material and workmanship defects and fit
for their intended use. Keurig will repair or replace Keurig AFH Brewers for a period of one (1) year from date of shipment to Diedrich any defective Keurig AFH Brewer. If a Keurig AFH Brewer is found to be defective within 30 days of shipment,
Keurig shall first attempt to effect the repair such brewer. If Keurig determines that it will not be able to effect the repair of a Keurig AFH Brewer found to be defective within 30 days of shipment, Keurig will replace such brewer with a new
brewer. If a Keurig AFH Brewer is found to be defective more than 30 days after shipment, Keurig in its sole discretion shall repair such brewer or replace such brewer with a refurbished brewer in like new condition. 
  

	9.2	At Home Brewers. 

 Keurig shall provide Diedrich with a
limited one-year warranty on each Keurig AH Brewer from the date of the original end-user’s purchase from Diedrich (the “Keurig AH Warranty”). Keurig warrants that Keurig AH Brewers will be free of design, material and
workmanship defects and fit for their intended use. Keurig will repair or replace any defective Keurig AH Brewer for a period of one (1) year from date of the original end-user’s purchase, subject to proof of purchase by end-user or proof
of sale by Diedrich. If a Keurig AH Brewer is found to be defective within 30 days of such purchase, Keurig shall replace such brewer with a new brewer. If a Keurig AH Brewer is found to be defective more than 30 days after such purchase, Keurig in
its sole discretion shall repair such brewer or replace such brewer with a refurbished brewer in like new condition. Keurig will not use any warranty registration process to intentionally solicit consumers that purchased the Keurig AH Brewer from
Diedrich. 
  

	 	9.2.1	Keurig shall provide Diedrich’s end-user customers with a limited one-year warranty on each Keurig AH Brewer from the date of the original end-user’s purchase from
Diedrich (the “Keurig AH Customer Warranty”). Keurig warrants that Keurig AH Brewers will be free of design, material and workmanship defects and fit for their intended use. Keurig will repair or replace any defective Keurig AH
Brewer for a period of one (1) year from date of the original end-user’s purchase, subject to proof of purchase. 

  

	 	9.2.2	Notwithstanding Section 9.2, the warranty for Keurig Brewers purchased by Diedrich for the purposes of AH test marketing as set forth in Section 7.2.5 shall be limited to
the specific terms and conditions agreed to by the Parties for each purchase of such Keurig Brewers by Diedrich as set forth in Schedule 7.2.5. 

  

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	 	9.2.3	Notwithstanding this Section 9.2, should AH Brewers be used or sold by Diedrich as AFH Brewers, the warranty terms for such Brewers shall be as set forth in Section 9.1.

  

	9.3	Common Warranty Provisions. 

 Keurig will perform warranty
service at Keurig’s designated facility, provided Diedrich returns the Keurig Brewer in accordance with Keurig’s shipping instructions. Keurig’s sole responsibility under this warranty shall be, to either repair or replace the Keurig
Brewer. Keurig shall only be responsible for its own costs of materials and its own labor in connection with warranty claims. For all replacement parts not manufactured by Keurig, Keurig shall make commercially reasonable efforts to pass through
warranty coverage from its suppliers to Diedrich. All defective Keurig Brewers, or defective components thereof, returned under this warranty shall become Keurig property. If Keurig determines that the original Keurig Brewer did not contain a
design, material or workmanship defect, Diedrich shall pay Keurig all costs of handling, transportation, and repairs at Keurig prevailing rates, which Keurig shall make available to Diedrich at Diedrich’s reasonable request. Diedrich shall not
represent, neither explicitly nor implicitly, that it is offering, adopting or issuing the Keurig AFH Warranty or Keurig AH Customer Warranty; nor shall Diedrich affirm, promise or undertake any warranty obligation on behalf of Keurig with respect
to any Keurig Brewers. The warranty is void under the following circumstances: 
  

	 	9.3.1	Diedrich repairs Keurig Brewers with replacement parts that have not been purchased from or approved by Keurig. 

  

	 	9.3.2	Negligent installation, repair, or operation of Keurig Brewers, including but not limited to, operation of Keurig Brewers without a Keurig approved water filtration system unless
the brewer is not designed for a direct water line connection. Keurig approved water filtration systems include the Omnipure KQ8. 

  

	 	9.3.3	Abuse or neglect, including but not limited to, failure to periodically clean or remove mineral deposit accumulations from Keurig Brewers. 

  

	 	9.3.4	Keurig Brewers damaged in transit from Diedrich to Keurig due to improper packaging. 

  

	 	9.3.5	Keurig Brewers damaged after delivery from Keurig to Diedrich. Shipping damage claims should be submitted to the shipping company. 

  

	9.4	Keurig Brewer Return Procedure. 

 Any Keurig Brewers
returned must have an Authorization To Return (ATR) number, which can only be issued by Keurig’s Service Department at 1-888-CUP-BREW and which shall not be unreasonably withheld. All returns shall be returned at Keurig’s expense in
cartons marked with the ATR number. Keurig Brewers must be packed in the appropriate standard Keurig Brewer carton. Keurig reserves the right to not accept delivery of Keurig Brewers returned in cartons other than the appropriate standard Keurig
Brewer cartons or cartons that are not labeled with the ATR number. 
  

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	10.	Training. 

 For as long as Diedrich is a distributor
of Keurig Products, Keurig agrees to provide periodic free training on a reasonable basis to technical and service representatives designated by Diedrich in all aspects of servicing and operation of Keurig Products, and will provide Diedrich with up
to date service materials on Keurig Products. 
  

	11.	Marketing Policies. 

  

	11.1	Cooperation and Cost Sharing. 

 Keurig and Diedrich agree
to co-operate in promoting Keurig Products and Diedrich K-Cups. Diedrich will develop sales materials, merchandising materials and retail displays from time to time to market and sell Keurig Products. All Diedrich sales literature, fixtures or any
other marketing or merchandising material used to promote Diedrich K-Cups and or Keurig Products not subject to cost sharing shall be available for sale to Keurig at prices established by Diedrich from time to time. The Parties will review cost
sharing of trade show participation on a situation-by-situation basis, and discuss in good faith cooperation to maximize the exposure given to Keurig Products and Diedrich K-Cups at trade shows. Nothing herein shall obligate either Party to promote
Keurig Products or Diedrich K-Cups at any trade show. 
  

	11.2	Diedrich Advertising of AH Products. 

 Diedrich shall be
required to advertise the availability from Diedrich or Keurig of Keurig AH Product offerings (e.g., that Diedrich or Keurig offers an AH line of products using Keurig’s brewing technology) commencing 30 days prior to the AH Launch currently
planned by Keurig for July 7, 2003. This shall include but not be limited to promoting Keurig AH Products in Diedrich’s company owned retail locations, website and catalogs, and, as practicable at Diedrich’s discretion, on packaging
materials for Diedrich K-Cups (e.g. the front of the current 25-pack sleeve of Diedrich K-Cups). Notwithstanding the foregoing, Diedrich may first deplete its inventories of printed matter in its possession or under its control prior to the AH
Launch before complying with the requirements of this Section, provided that such inventories are purchased in accordance with Diedrich’s normal course of business. 
  

	11.3	Diedrich on Keurig’s Website. 

 Keurig shall place on
its website an Internet hyperlink to Diedrich’s website. Diedrich shall have the right to approve the form and content of any information about Diedrich on Keurig’s website, such approval not to be unreasonably withheld or delayed.

  

	11.4	Sharing of Information. 

 Keurig and Diedrich agree to
share all information related to design, packaging, performance and functionality of Keurig AH Products and the K-Cup. Upon request, Keurig will provide to Diedrich specific information on those AH customers that identify themselves as
(i) having purchased a Keurig AH Product from Diedrich and (ii) having permitted Keurig to release that information back to Diedrich. All such shared information shall remain subject to the confidentiality provisions of this Agreement.

  

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	11.5	Post-AH Launch Offering of AH Brewers. 

 Subject to minimum
order requirements and subsequent to the AH Launch, Keurig shall offer for sale to Diedrich Keurig AH Brewers that are not accompanied by any promotional materials or sample coffee that promotes the purchase of coffee from any other Licensed
Roaster. 
  

	12.	Marks. 

  

	12.1	Use of Keurig Marks on K-Cups and K-Cup Packaging. 

 Diedrich will label all Diedrich K-Cups with either (a) the then current Diedrich Marks appropriate to lid stock; or (b) such marks as may be licensed to Diedrich by its customers as otherwise permitted in this Agreement. Each
Diedrich K-Cup label or lid shall also state: “For Keurig Brewers.” Instructions on Diedrich K-Cup packing cartons shall be intended to optimize the user’s understanding of how to use the complete Keurig Brewing System (K-Cup, Keurig
Brewer and, if applicable, the K-Cup dispensing unit) including at least the specific reference “For Keurig Brewers.” The packing cartons used to pack and dispense Diedrich K-Cups shall also include copy that contains references to Keurig
patents and patents pending, as well as Keurig’s logo and/or “Keurig Brewed” tag line or logo in a reasonable size relative to Diedrich’s logo and that is legible to a user from 6 feet. As soon as possible after new patents are
granted and such information is provided to Diedrich, Diedrich shall update product labels and literature to reflect the new patents after depleting stocks of its current inventory. Diedrich may use Keurig Marks as provided by Keurig together with
then current Diedrich Marks on any point-of-sale material, including standees, cups, napkins, dispensers, creamers, stirrers or brewers or advertising materials as permitted by the grant of license. 
  

	 	12.1.1 	Use of Keurig Marks for AFH marketing. 

 Keurig shall work
with Diedrich in good faith to develop prior to the AH Launch a set of mutually agreeable Keurig branding guidelines to be used in conjunction with Diedrich marketing of the AFH Keurig Brewing System. Such guidelines will include a requirement to
refer to Diedrich’s K-Cup as a “K-Cup” unless otherwise specified by Keurig. 
  

	 	12.1.2 	Use of Keurig Marks for AH marketing. 

 Keurig shall work
with Diedrich in good faith to develop prior to the AH Launch a set of mutually agreeable Keurig branding guidelines to be used in conjunction with Diedrich marketing of the Keurig Brewing System for the AH market. Such guidelines will include but
are not limited to branding on Diedrich’s K-Cup packaging, website, sales collateral, catalogs and advertising. The purpose of such guidelines is to ensure that Diedrich’s customers and ultimate consumers are aware of the unique Keurig
brewing technology associated with the Keurig Brewing System for the AH market. Such guidelines will include requirements that include the following: to refer to Diedrich’s K-Cup as a “K-Cup,” to use the term “Keurig Brewed”
in conjunction with Diedrich K-Cups, and the promotion of “Keurig Brewed” or “Keurig Brewed Single Cup” technology unless otherwise specified by Keurig. 
  

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	12.2	Rights in Marks. 

 Keurig acknowledges that all rights in
and to Diedrich’s and its customers’ Marks, including the goodwill derived therefrom, are the sole and exclusive property of Diedrich and its customers. All uses of Diedrich’s or its customers’ Marks are subject to the prior
written approval of Diedrich. Keurig acknowledges that Diedrich’s rights in and to its Marks are special and unique, and that notwithstanding the arbitration provisions of this Agreement, Diedrich shall be entitled to specific performance and
injunctive relief to prevent a breach or threatened breach of its rights pursuant to this Section 12. Keurig shall promptly notify Diedrich of any infringements, imitations, illegal use or misuse of Diedrich Marks which come to Keurig’s
attention. 
 Diedrich acknowledges that all rights in and to the Keurig Marks, including the goodwill derived therefrom, are the sole and
exclusive property of Keurig. Subject to the grant of license and except as otherwise specifically permitted by this Agreement, all uses of Keurig Marks are subject to the prior written approval of Keurig. Diedrich is prohibited from modifying any
of Keurig’s Products including covering or removing any Keurig labeling or logo without prior written permission from Keurig. Diedrich acknowledges that Keurig’s rights in and to its Marks are special and unique, and that notwithstanding
the arbitration provisions of this Agreement, Keurig shall be entitled to specific performance and injunctive relief to prevent a breach or threatened breach of its rights pursuant to this Section 12. Diedrich shall not reference Keurig except
in connection with Keurig Products and Diedrich K-Cups. 
 The provisions of this Section 12.2 shall survive termination of this
Agreement with the exception that after termination of this Agreement either Party may deny approval for the use of their Marks to the other Party in its absolute discretion. 
  

	12.3	Display of Marks. 

 The Parties agree that any of their
respective Marks that have been pre-approved under Section 12 and listed in Schedule 12.3 may be displayed in any media as part of a representation of the Keurig Brewing System for the purpose of sales literature without the further prior
approval of the other Party. Diedrich agrees that its sales literature shall reference Keurig patents as above. Diedrich may use and display the “Keurig” Mark in any advertising or promotional material without prior written consent so long
as the material includes reference to Keurig as the owner of the Mark. 
  

	12.4	Maintenance of Intellectual Property. 

 Keurig shall be
responsible for maintaining the intellectual property licensed in this Agreement, including Keurig Marks and patents, in full force and effect throughout the term of this Agreement. 
  

	12.5	Notice of Infringement 

 Each Party shall advise the other
promptly of any instances of infringements, imitations, illegal use or misuse, of any intellectual property licensed in this Agreement, including Keurig Marks and patents. Diedrich shall have the right to commence legal action for the enforcement of
any such licensed intellectual property in the Territory, but prior to the commencement of any such 

  

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action by Diedrich, Diedrich shall advise Keurig by notice in writing of its intention to do so. Keurig shall have the option to be exercised by delivery of
notice in writing to Diedrich to assume the conduct of any such action and appoint counsel of its choice at any time during the action provided that Keurig reimburses Diedrich for all reasonable legal costs incurred by Diedrich from the date of
commencement of the action. Keurig and Diedrich shall co-operate fully in the prosecution of any such action free of charge, and each agrees that it shall be joined as a Party plaintiff to the action and authorizes such joinder. Each shall have the
right at its own expense to retain independent counsel who shall be kept fully informed of all issues in the action, who shall be advised in advance of each new step in the action, and who shall be entitled promptly to receive copies of all
pleadings, documents and correspondence regarding the action. In the event that any such action is successfully prosecuted against an infringer, any damages, accounting of profits, award of legal costs or other recovery shall be applied first to
reimburse the Party having the conduct of the action for its reasonable legal expenses, including any amounts paid by Keurig to Diedrich in assuming the conduct of the action, and any remaining amounts shall then be divided between Keurig and
Diedrich in proportion to the damages suffered by Diedrich and the Royalties lost by Keurig with respect to the infringing conduct, subject to arbitration as hereinafter set out if the Parties are unable to agree upon such proportion. In the event
that any such action is unsuccessful, the Party responsible for the conduct of the action shall be responsible for paying any legal costs that may be awarded to the successful defendant. 
  

	12.6	Infringement Action 

 Keurig shall at Keurig’s expense
conduct the defense of any action on behalf of Diedrich commenced in the Territory against Diedrich for infringement of any intellectual property licensed in this Agreement, provided that such infringement is necessarily incidental to the exercise
of the rights granted in this Agreement and provided that Diedrich promptly advises Keurig of any threatened action or claim against Diedrich and co-operates fully with Keurig in the defense of any action including providing such information and
evidence regarding any alleged acts of infringement as may reasonably be required by Keurig. Keurig shall have the exclusive right to select counsel of its choice to defend any such action. Keurig may settle any such action or claim against Diedrich
in such manner as Keurig in its absolute discretion sees fit provided that any such settlement shall not interfere with Diedrich’s right to exercise the rights granted in this Agreement and provided that Keurig bears all costs associated with
the settlement including any compensation for past infringement and any royalties or other costs required to enable Diedrich to continue to exercise the rights granted in this Agreement. Keurig may settle any such action or claim on any other basis
with the prior written consent of Diedrich. 
  

	12.7	License 

 In the event Keurig stops supplying any Keurig
Products or K-Cups in the ordinary course of its business within the Territory, the Parties shall negotiate in good faith a non-exclusive license for Diedrich to manufacture, use and sell such Keurig Products or K-Cups within the Territory, and
Diedrich shall pay to Keurig a reasonable royalty for such license. 
  

	13.	Sales Policies. 

  

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	13.1	Diedrich’s Best Efforts. 

 Where appropriate and in
accordance with their client’s needs and desires, Diedrich will use best efforts to promote vigorously and effectively the sale of Diedrich K-Cups and Keurig Products in the Territory, as provided for in this Agreement. Diedrich will accept
orders for, pick, and ship Diedrich K-Cups and Keurig Products in accordance with the same policies, procedures, and performance standards it uses for its non-Keurig product offerings. 
  

	13.2	New Keurig Authorized Distributors. 

 Keurig agrees to
inform Diedrich of all new Keurig Authorized Distributors within five (5) business days of their acceptance (but in any event, no later than any other roaster is informed), including requested credit and other reasonable commercial information.

  

	14.	Non-Compete. 

  

	14.1	Basic Terms of Non-Competition. 

 For the term of this
Agreement, Diedrich agrees that it will not directly or indirectly: (a) install or solicit for installation, design or solicit for the design, develop or solicit the development of any manufacturing line or system to manufacture single-cup,
portion-pack cartridges for use in a conjunction with a pressurized hot water system other than the Keurig Brewing System; and (b) design, develop, or manufacture, or contribute in any way thereto, any single-cup, portion-pack products,
including any brewer designed for use with single-cup, portion pack cartridges other than the Keurig Brewer, in the case of both clauses (a) and (b) that contemplate all of the following concepts: 
  

	 	•	 	 Single serving of ground coffee, tea, hot chocolate or other non-coffee soluble hot beverage base contained in a brewing chamber; 

  

	 	•	 	 A brewing chamber designed to be pierced during the brewing process to allow hot water in and the brewed beverage out; 

  

	 	•	 	 A pressurized brewing process that takes place at pressures less than 30 psi inside the brewing chamber; and 

  

	 	•	 	 A brewing chamber requiring no human manipulation other than placing the brewing chamber in the brewing machine. 

 Examples of the above systems that would be competitive include single-cup portion-pack coffee systems such as those manufactured by Flavia and Kenco.
Examples of systems that would not be competitive are hopper-based single-cup coffee systems such as those manufactured by Filterfresh and Brio and espresso pod-based systems such as Illy pod espresso machines, Café Espresso and 123spresso
systems. 
  

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 This Non-Compete does not apply to single-cup, portion-packed hot beverage products or brewing
systems that are not used to brew coffee or tea (including herbal tea) until the time that Keurig offers a single-cup, portion-pack product that produces the same type of non-coffee hot beverage and that Diedrich agrees to distribute such product.

  

	14.2	Sale by Affiliates. 

 Section 14.1 shall not apply to
the sale of any single-cup, portion-pack products described under Section 14.1, including any brewer designed for use with single-cup, portion pack cartridges, by Diedrich or a Diedrich Affiliate. 
  

	14.3	Private Label K-Cups. 

 Nothing in this Agreement shall be
construed to prohibit Diedrich from contracting with any third party customer for the manufacture and sale by Diedrich of the customer’s private-label K-Cups; provided, however, that such private label K-Cups shall be deemed to be Diedrich
K-Cups and as such, be subject to the provisions of this Agreement. Notwithstanding the foregoing, Diedrich agrees to provide Keurig with any proposed contract between Diedrich and any third party relating to private label K-Cup manufacture and sale
prior to such contract’s execution, provided, however that Diedrich reserves the right to maintain the confidentiality of any information in such contract related to pricing between Diedrich and the third party. Keurig shall have the right to
approve or disapprove any such contract based on such contract’s compliance with the terms and conditions of this Agreement. Keurig shall review and either approve or disapprove such contracts in a timely fashion. If Keurig disapproves any such
contract, Keurig shall provide Diedrich with written notice describing how such contract is not in compliance with this Agreement so that such contract may be brought into compliance with this Agreement. 
  

	14.4	Termination of Non-Competition. 

 Notwithstanding
Section 14.1, Diedrich’s obligations pursuant to this Section 14 shall terminate upon either Party providing one (1) year’s notice of non-renewal as provided for in Section 15.1, Keurig’s receipt of two
(2) years’ written notice of termination from Diedrich as provided for in Section 15.3.1 or upon Diedrich’s receipt of two (2) years’ written notice of termination from Keurig as provided for in Section 15.4.1.
Notwithstanding the arbitration provisions of this Agreement, Keurig shall be entitled to specific performance and injunctive relief to prevent a breach or threatened breach of its rights under this Section 14. 
  

	14.5	Most Favored Nation. 

 In the event that the
non-competition obligations of any Licensed Roaster are more favorable to such Licensed Roaster than those contained herein, Keurig shall notify Diedrich, which shall then have the right to amend the non-competition obligations contained in this
Section 14 to be the same or substantially the same as the license agreement of such Licensed Roaster. 
  

	15.	Term and Termination of Agreement. 

  

	15.1	Term. 

  

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 This Agreement shall have a term of ten (10) years (the “Initial Term”) and
shall automatically renew thereafter for successive terms of five-years (each a “Renewal Term”) unless Keurig notifies Diedrich in writing of its intent not to renew at least one (1) year prior to the expiration of the Initial Term or
any Renewal Term or unless this Agreement is earlier terminated as provided for in this Section 15. Notwithstanding the foregoing, Keurig shall not have a right to terminate at the end of the Initial Term if Diedrich’s K-Cup sales for the
twelve month period ending one (1) year prior to the end of the Initial Term are at least [* * *] units and Keurig shall not have a right to terminate at the end of any Renewal Term provided Diedrich’s K-Cup sales for the twelve
month period ending one (1) year prior to the end of each Renewal Term are at least [* * *] units greater than Diedrich’s K-Cup sales for the twelve month period ending five (5) years earlier. 
  

	15.2	Termination for Cause. 

  

	 	15.2.1 	Notwithstanding the foregoing, either Party may terminate this Agreement for Cause. “Cause” shall be understood as any of the following events: (1) material
breach of this Agreement; (2) institution by or against a Party of bankruptcy, insolvency or receivership proceedings or an admission of a Party of its inability to pay its debts as they become due; or (3) commencement by a Party of any
steps toward liquidation, dissolution or winding up of its affairs. 

  

	 	15.2.2 	Prior to effecting termination under Section 15.2.1 clause 1, either Party shall provide prior written notice of breach to the defaulting Party and if such breach is not cured
within thirty (30) business days of notice, the Party shall then attempt to resolve the matter in good faith through direct negotiations prior to calling on any remedies set forth in Section 19.13. If the Parties cannot resolve the matter
within fifteen (15) days of their first meeting, the dispute shall be settled in accordance with Section 19.13 of this Agreement. If the judgment rendered as a result of the procedures required in Section 19.13 validates the
terminating Party’s assertion that it is entitled to terminate pursuant to Section 15.2.1 clause 1, that Party may terminate this Agreement upon ninety (90) days’ prior written notice to the defaulting Party. Any termination
under Section 15.2.1 clause 2 or 3 shall be effective immediately upon providing written notice to the defaulting Party. 

  

	15.3	Diedrich Termination Rights. 

  

	 	15.3.1 	Diedrich may terminate this Agreement at any time and for any reason upon providing Keurig with two (2) years’ prior written notice. 

  

	 	15.3.2 	 Notwithstanding the termination of this Agreement, Diedrich, at its own option, may continue to sell and deliver Diedrich K-Cups remaining in its inventory in order
to fulfill existing customer orders at prevailing Diedrich list prices for a six (6) month period after the termination of this Agreement, and Diedrich will continue to permit Keurig to resell Diedrich K-Cups that are in its inventory that
contain the Diedrich Marks. Keurig shall have an option, exercisable within thirty (30) days of the termination of this Agreement, 

  

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to purchase and take delivery of any or all of the remaining Diedrich K-Cups in Diedrich’s inventory (subject to any reserve in order to allow Diedrich
to fulfill existing customer orders) at Diedrich’s then prevailing list prices in accordance with Section 2.4. If Keurig fails to exercise such option, Diedrich may sell any inventory remaining after fulfilling its own existing customer
orders through customary distribution channels and at prevailing Diedrich list prices, subject to the royalty provisions of Section 6. 

  

	15.4	Keurig Termination Rights. 

 In addition to those
termination rights as contemplated in Section s 15.1 and 15.2, Keurig may also terminate this Agreement upon two years’ notice to Diedrich if Diedrich refuses a Royalty Alteration as contemplated in Section 6.4.2. 
  

	16.	Obligations on Termination. 

 On termination of this
Agreement, Diedrich shall cease to be a Roaster Distributor with rights to purchase Keurig Products from Keurig or K-Cups from Keurig and Licensed Roasters and to have any other rights hereunder (the “Terminated Roaster Distributor”),
except as expressly set forth hereinbelow: 
  

	16.1	Except in the event of knowing and intentional submission by Diedrich to Keurig of false or fraudulent reports or statements (in which case all rights by the Terminated Roaster
Distributor to purchase Keurig Products and K-Cups hereunder shall irrevocably cease), and subject to the other terms and conditions of this Section 16, the Terminated Roaster Distributor may continue to purchase K-Cups and other Keurig
Products, but not Keurig Brewers, from Keurig [* * *] on Keurig’s [* * *] and K-Cups from Licensed Roaster(s), provided Diedrich and such Licensed Roaster(s) are able to agree on such arrangement, at prices and terms agreed
between such Licensed Roaster(s) and Diedrich for the sole purpose of supplying the requirements of the Keurig Brewers owned by Diedrich so long as such Keurig Brewers remain within the Territory (“Installed Brewers”). Keurig hereby agrees
to pass through to Diedrich any expressed or implied warranties of any Licensed Roaster in connection with such Licensed Roaster’s K-Cups purchased under this Agreement. Keurig reserves the right to establish separate credit terms or no credit
terms for the Terminated Roaster Distributor, in its absolute discretion. Keurig may require, as a condition to Keurig’s obligations under this Section 16.1, that all amounts owed by the Terminated Roaster Distributor to Keurig,
notwithstanding prior terms of sale, become immediately due and payable and any other faults or breaches under this Agreement be cured. If Keurig so requires, the Terminated Roaster Distributor’s rights under this Section 16.1 shall be
tolled until all such amounts have been paid in full and/or such faults or breaches cured. Any termination of this Agreement shall not affect any other rights then accrued. Keurig’s obligations to continue to supply K-Cups and Keurig Products,
but not Keurig Brewers, hereunder shall continue only so long as Keurig continues to provide the applicable Keurig Products or K-Cups in the ordinary course of its business within the Territory. 

  

	16.2	 Diedrich shall not sell or use any K-Cups or Keurig Products supplied by Keurig or K-Cups supplied by Licensed Roasters under Section 16.1 for Keurig Brewers
other than the Installed Brewers located within the Territory. Diedrich hereby agrees that, in addition to Keurig’s other 

  

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remedies, Keurig shall be entitled to specific performance and injunctive relief to cease or prevent a breach of its rights under this Section 16.2.

  

	16.3	With the specific exception of the K-Cup trademark, Diedrich shall limit its use of Marks to inventories existing at the time of termination of stationary, advertising matter and
other printed matter in its possession or under its control. Diedrich shall immediately take all commercially reasonable steps to remove and cancel its listings in telephone books, and other directories, and public records, or elsewhere that contain
Marks. Notwithstanding Section 19.8 herein, if Diedrich fails to obtain such removals or cancellations promptly, Diedrich hereby appoints Keurig as its attorney-in-fact for the limited purpose of making application for such removals or
cancellations on behalf of Diedrich and in Diedrich’s name and in such event Diedrich will render reasonable assistance. Notwithstanding the arbitration provisions of this Agreement, Keurig shall be entitled to specific performance and
injunctive relief to prevent a breach or threatened breach of its rights under this Section. 

  

	16.4	All unshipped orders for Keurig Brewers shall be cancelled without liability of either Party to the other. 

  

	16.5	Neither Party shall be liable to the other because of such termination for compensation, reimbursement, or damages on account of the loss of prospective profits or anticipated
sales, or on account of expenditures, investments, lease or commitments in connection with the business or goodwill of Keurig or Diedrich. Nothing in this Subsection 16.5 nor a termination of this Agreement by either Party under Section 15
shall be deemed to relieve the other Party of any liability arising out of a breach of its obligations under this Agreement. 

  

	16.6	The Terminated Roaster Distributor’s rights to continue to purchase K-Cups and Keurig Products from Keurig or a Licensed Roaster under Section 16.1 shall terminate
immediately and irrevocably upon notice in the event of the Terminated Roaster Distributor’s breach of any provision of this Section 16, or upon the Terminated Roaster Distributor’s failure to pay any amount owed when due, which
failure is not cured within ten (10) days following written notice from Keurig. It is expressly understood and agreed that Keurig’s rights in the event of such breach or failure shall include the right to cause its Licensed Roasters to
cease supplying K-Cups and Keurig Products to the Terminated Roaster Distributor pursuant to Keurig’s contractual arrangements with its Licensed Roasters. 

  

	17.	Confidentiality of Customers; Confidentiality. 

 Diedrich hereby acknowledges Keurig’s intent to inform current and subsequent Licensed Roasters of all KADs and other entities that distribute K-Cups. Keurig hereby agrees during the term of this Agreement and for a period of ten
(10) years from the termination of this Agreement not to inform other Licensed Roasters, and to treat as confidential, all Confidential Information, whether any such entities purchase Keurig Products and K-Cups from Diedrich, unless such
information is publicly available. 
  

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 Each of the Parties acknowledges that, in the course of performing their respective obligations
hereunder, a Party (“Receiving Party”) may receive information which is proprietary and confidential to the other Party and its Affiliates (“Disclosing Party”) and which the Disclosing Party wishes to protect from
public disclosure (“Confidential Information”). Confidential Information includes nonpublic information that Disclosing Party designates as being confidential or which, under the circumstances surrounding disclosure, ought to be
treated as confidential. Confidential Information includes, without limitation, all information disclosed at any time before, after or at the time of execution of this Agreement to the Receiving Party relating to the Disclosing Party’s
businesses, customers, products, manufacturing techniques, marketing and sales forecasts, financial status, product development plans, strategies and the like. Excluded from the definition of Confidential Information is information: 
  

	 	•	 	 Already in public domain (except as specifically provided above); 

  

	 	•	 	 Which passes into the public domain through no fault of the Receiving Party; 

  

	 	•	 	 Released to third parties by the Disclosing Party without restriction; or 

  

	 	•	 	 That the Receiving Party is ordered to release by a court or agency of competent jurisdiction. In such event, the Receiving Party shall notify the Disclosing Party
immediately of the subpoena. It will be the burden of Disclosing Party to move for a protection order or similar device upon notice, and to notify the Receiving Party within a seventy-two (72) hour period, or less if required by the subpoena,
that it is doing so. Failure of a Disclosing Party to timely notify the Receiving Party will release the Receiving Party from its confidentiality obligations. 

 The Receiving Party shall, during the term of this Agreement and for a period of five (5) years from the date of termination of this Agreement:

  

	 	•	 	 Ensure that the Confidential Information of the Disclosing Party is not revealed to anyone, in whole or in part, except to its employees and to third parties
employed by it where it is essential that the Confidential Information be revealed in order to ensure the fulfillment of its obligations under this Agreement; 

  

	 	•	 	 Use the Confidential Information only to the extent where it is essential or desirable that it do so in order to ensure the fulfillment of its obligations under
this Agreement; 

  

	 	•	 	 Take the necessary measures to inform each of its employees and third parties employed by it and to whom it discloses Confidential Information, of the nature of
such information and its confidential character and to assure that each of its employees and such third parties respect all the obligations of the Receiving Party in accordance with this Agreement; 

  

	 	•	 	 Inform the Disclosing Party of any unauthorized disclosure or use of the Confidential Information of which it is aware; and 

  

	 	•	 	 Return to the Disclosing Party the Confidential Information, upon the Disclosing Party’s request, or at the latest, at the time of the termination of this
Agreement, without the requirement of notice, all the Confidential Information that the latter has revealed to it. 

 Notwithstanding the arbitration provisions of this Agreement, either Party shall be entitled to specific performance and injunctive relief to prevent a breach or threatened breach of its rights under Section 17 of this Agreement.

  

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	18.	Indemnification. 

  

	18.1	Keurig Indemnification of Diedrich. 

 Keurig shall
indemnify and hold harmless Diedrich, its officers, directors, employees, and agents from and against any loss, damage, cost or expense (including reasonable attorneys’ fees) arising out of: (1) default of Keurig under this Agreement;
(2) breach of any Keurig warranty or representation under this Agreement; (3) any third party patent, trademark or copyright claim or action alleging infringement or violation of any other third party proprietary right as a result of
Diedrich’s use of any Keurig patent, trademark, or other materials provided by Keurig for use by Diedrich; (4) any defect in the design of the Keurig Brewing System, K-Cups or any component thereof; (5) any manufacturing defect,
including in material and workmanship, in the Packaging Lines or any Keurig Brewer or any component thereof, including but not limited to any actual or alleged injury damage, injury, death or consequent occurring to any person as a result, directly
or indirectly, or the operation, maintenance or use of the Packaging Line(s) and/or consumption of coffee, tea or non-coffee soluble hot beverage via the K-Cup and/or Keurig Brewing System whether claimed by reason of breach of warranty, negligence,
Keurig Product defect, Packaging Line defect or otherwise and regardless of the forum in which any such claim is made. Keurig shall maintain general and products liability insurance in an amount of not less than [* * *] dollars on an
occurrence basis. 
  

	18.2	Diedrich Indemnification of Keurig. 

 Diedrich shall
indemnify and hold harmless Keurig its officers, directors, employees, and agents from and against any loss, damage, cost or expense (including reasonable attorneys’ fees) arising out of: (1) default of Diedrich under this Agreement;
(2) breach of any Diedrich warranty or representation under this Agreement; (3) any third party trademark or copyright claim concerning use by Keurig of any Diedrich Mark provided by Diedrich to Keurig pursuant to this Agreement;
(4) any third party claim of damage, injury, death or consequence related to the coffee, tea or non-coffee soluble hot beverage base, or any other raw material used by Diedrich in the manufacture and/or sale of Diedrich K-Cups. Diedrich shall
maintain general and products liability insurance in an amount of not less than [* * *] dollars on an occurrence basis. 
  

	19.	General. 

  

	19.1	Scope of Agreement. 

 The Parties agree that the scope of
this Agreement is limited to the AFH and AH markets. In no way do the terms of this Agreement affect the Parties’ rights in other markets or with other products or create any obligations or rights pertaining thereto. 
  

	19.2	Additional Agreements. 

 In the event of any conflict
between any Diedrich purchase order and any term or condition in this Agreement, the terms and conditions of this Agreement shall control. 
  

	19.3	Force Majeure. 

  

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 Either Party shall be excused from delays in performing or from its failure to perform hereunder to
the extent that such delays or failures result from a natural calamity, act of government or similar cause beyond the control of such Party, provided that, in order to be excused from delay or failure to perform, such Party must give written notice
to the other containing reasonable particulars of such delay or failures in question and act diligently to remedy the cause of such delay or failure. 
  

	19.4	No Implied Waivers. 

 Failure to insist upon strict
compliance with any of the terms, condition, covenants, and agreements of this Agreement in any particular instance shall not be deemed a waiver of such terms, conditions, covenants or agreement in any other instance. 
  

	19.5	Acknowledgments. 

 Each Party acknowledges that, except as
set forth in this Agreement, no representation or statement, and no understanding or agreement, has been made, or exists, and that in entering into this Agreement each Party has not relied on anything done or said or on any presumption in fact or in
law, (1) with respect to this Agreement, or to the duration, termination or renewal of this Agreement, or with respect to the relationship of the Parties, other than as expressly set forth in this Agreement; or (2) that in any way tends to
change, modify the terms, or any of them, of this Agreement or to prevent this Agreement becoming effective; or (3) that in any way affects or relates to the subject matter hereof. 
  

	19.6	Final Agreement. 

 This Agreement and all the documents
referred to herein or attached hereto, represent the entire understanding and agreement between the Parties as to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, all of which are hereby terminated.
No prior, concurrent or subsequent agreement, representations or warranty, whether written or oral, shall be construed to change, amend, alter, repeal or invalidate this Agreement, unless this Agreement is specifically identified in and made subject
to such other written agreement. This Agreement may be waived or modified only by an instrument in writing that is duly executed by both Parties. 
  

	19.7	Severability. 

 In the event that any provision of this
Agreement shall be found to be invalid, the balance of the Agreement shall remain unaffected and deemed to be severable from the invalid portion. 
  

	19.8	Relationship of the Parties. 

 This Agreement does not
imply any joint venture, partnership or other business arrangement between the Parties. Keurig and Diedrich are separate, independent business entities agreeing to work together in the manner set forth in this Agreement. Neither Keurig nor Diedrich
shall have any right to enter into any contract or commitment in the name of, or on behalf of the other, or to bind the other in any respect whatsoever. Neither Party, nor its agents or employees shall, under no circumstances, be deemed employees,
agents or representatives of the other Party. 
  

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has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

	19.9	Waiver of Jury Trial. 

 The Parties waive all rights to
trial by jury. 
  

	19.10 	Headings; Counterparts. 

 Headings used in this Agreement
are provided for convenience only and shall not be used to construe meaning or intent. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 
  

	19.11 	Assignment. 

 This Agreement shall be binding upon the
Parties and their respective permitted successors and assigns, provided that neither Party may assign nor transfer this agreement without the consent of the other Party except to a successor by reason of merger or sale of all or substantially all of
its assets. 
  

	19.12 	Notices. 

 All notices and other communications required or
permitted to be given under this Agreement shall be in writing and shall be deemed given when delivered in hand or by confirmed facsimile, the following day when sent overnight by a reputable commercial courier or five (5) days from deposit in
the U.S. or Canadian Mail, postage prepaid and addressed to the appropriate Party at the address noted below, return receipt requested, unless by such notice a difference address shall have been designated. 
 If to Keurig: 
 Keurig,
Incorporated 
 101 Edgewater Drive 
 Wakefield, MA 01880 
 Attention: Nicholas Lazaris, President/CEO 
 With a copy to: 
 John H. Chu, Esq.

 Chu, Ring & Hazel LLP 
 49 Melcher Street 
 Boston, MA 02210 
 If to Diedrich: 
 Diedrich Coffee, Inc. 
 2144 Michelson Drive 
 Irvine, CA 

Attention: Roger Laverty, President and CEO 
  

	19.13 	Arbitration. 

 Except as otherwise specifically provided
herein, in the event of any dispute between the Parties relating to or arising out of this Agreement, the Parties shall first attempt to resolve the matter in good faith through direct negotiation. If the Parties cannot resolve the matter within

  

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fifteen (15) days of the first meeting called for such purpose, the dispute shall be settled by arbitration in the city of the Party defending the claim
before a neutral arbitrator in accordance with the rules and regulations of the American Arbitration Association. If the Parties cannot agree on a single arbitrator, each Party shall appoint an arbitrator, and the two arbitrators shall agree to a
third, neutral arbitrator. The Parties shall share the fees and expenses of arbitration, provided however, that the arbitrator(s) shall be empowered to award costs of arbitration and attorneys’ fees as part of any award subject to
Section 18, above. The arbitrator(s)’ decision shall be final and legally binding on the Parties, and shall be rendered in a manner to permit enforcement of the award in any court of competent jurisdiction. Upon request from Diedrich, the
language to be used in the arbitral proceedings shall be English and French. 

  

	19.14 	Governing Law; Jurisdiction. 

 This Agreement is made in
the Commonwealth of Massachusetts, and shall be governed by and construed in accordance with federal law to the extent applicable, and the internal substantive laws of the Commonwealth of Massachusetts without regard to any choice or conflict of law
principles. 
  

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has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

 ACKNOWLEDGEMENT OF ARBITRATION 
 THE PARTIES HERETO UNDERSTAND THAT THIS AGREEMENT CONTAINS AN AGREEMENT TO ARBITRATE. AFTER EXECUTING THIS DOCUMENT, EACH PARTY UNDERSTANDS THAT IT
WILL NOT BE ABLE TO BRING A LAWSUIT CONCERNING ANY DISPUTE THAT MAY ARISE WHICH IS COVERED BY THE ARBITRATION AGREEMENT, UNLESS IT INVOLVES A QUESTION OF CONSTITUTIONAL OR CIVIL RIGHTS OR EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN. INSTEAD, EACH
PARTY AGREES TO SUBMIT ANY SUCH DISPUTE TO AN IMPARTIAL ARBITRATOR. 
 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement
to be executed as a contract of the day and year first above written. 
  

			
	Keurig, Incorporated
		
	By:	 	/s/ Nicholas Lazaris
		 	      Nicholas Lazaris
		 	      President/CEO
	
	Diedrich Coffee, Inc.
		
	By:	 	/s/ Roger Laverty
		 	      Roger Laverty
		 	      President and CEO

  

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 Table of Contents 
  

					
	1.       Definitions	  	1
		
	2.       Appointment as Non-Exclusive K-Cup Manufacturer	  	5
	 2.1
	  	Grant of Licenses	  	5
	 2.2
	  	Private Label K-Cup Production	  	7
	 2.3
	  	Diedrich K-Cup Product Line Offering	  	7
	 2.4
	  	K-Cup Pricing	  	7
	 2.5
	  	Approved Contract Manufacturers	  	8
	 2.6
	  	Agreement to Co-operate	  	8
		
	3.       Packaging Lines	  	8
	 3.1
	  	Packaging Lines for Diedrich K-Cups	  	8
	 3.2
	  	Maintenance	  	11
	 3.3
	  	Determination of Packaging Line Requirements; Upgrades to Packaging Lines	  	12
	 3.4
	  	OSHA Compliance	  	14
		
	4.       Option to Purchase or Manufacture Packaging Lines; Future Products	  	14
	 4.1
	  	Option to Purchase Installed Packaging Line(s)	  	14
	 4.2
	  	Diedrich Option to Design and Develop Packaging Lines	  	15
		
	5.       Acceptable K-Cups to Standard	  	16
	 5.1
	  	Freshness and Quality of Coffee, Tea and Other Soluble Hot Beverage Products	  	16
	 5.2
	  	Amount of Coffee, Tea or Other Soluble Hot Beverage Products Packaged in K-Cup	  	17
	 5.3
	  	Filter Weld Integrity	  	17
	 5.4
	  	Dating, Shelf Life and Oxygen Impermeability for Coffee, Tea and Other Soluble Hot Water Beverages	  	17
	 5.5
	  	Lid Seal Integrity	  	18
	 5.6
	  	K-Cup Raw Material Vendor Selection	  	18
	 5.7
	  	K-Cup Functionality	  	18
	 5.8
	  	K-Pods	  	20
	 5.9
	  	Out-gas Protocol	  	20
		
	6.       Royalties	  	20
	 6.1
	  	Calculation of Royalty	  	20
	 6.2
	  	Payments	  	21
	 6.3
	  	Review of Books and Records	  	21
	 6.4
	  	Most Favored Nation	  	21
		
	7.       Appointment as Non-Exclusive Roaster Distributor	  	22
	 7.1
	  	Away From Home	  	22
	 7.2
	  	At Home	  	23
	 7.3
	  	Common Sales and Distribution Provisions	  	24
		
	8.       Keurig Product Sales	  	24
	 8.1
	  	Keurig Best Efforts	  	24
	 8.2
	  	Keurig AFH Products	  	24
	 8.3
	  	Keurig AH Products	  	24
	 8.4
	  	Product Offering	  	25
	 8.5
	  	Terms of Sale	  	25
	 8.6
	  	Payments	  	25
	 8.7
	  	Guaranty of Sales to Affiliates	  	25

  

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	 8.8
	  	No Restrictions	  	26
		
	9.       Keurig Warranty	  	26
	 9.1
	  	Away From Home Brewers	  	27
	 9.2
	  	At Home Brewers	  	27
	 9.3
	  	Common Warranty Provisions	  	28
	 9.4
	  	Keurig Brewer Return Procedure	  	28
		
	10.     Training	  	29
		
	11.     Marketing Policies	  	29
	 11.1
	  	Cooperation and Cost Sharing	  	29
	 11.2
	  	Diedrich Advertising of AH Products	  	29
	 11.3
	  	Diedrich on Keurig’s Website	  	29
	 11.4
	  	Sharing of Information	  	29
	 11.5
	  	Post-AH Launch Offering of AH Brewers	  	30
		
	12.     Marks	  	30
	 12.1
	  	Use of Keurig Marks on K-Cups and K-Cup Packaging	  	30
	 12.2
	  	Rights in Marks	  	31
	 12.3
	  	Display of Marks	  	31
	 12.4
	  	Maintenance of Intellectual Property	  	31
	 12.5
	  	Notice of Infringement	  	31
	 12.6
	  	Infringement Action	  	32
	 12.7
	  	License	  	32
		
	13.     Sales Policies	  	32
	 13.1
	  	Diedrich's Best Efforts	  	33
	 13.2
	  	New Keurig Authorized Distributors	  	33
		
	14.     Non-Compete	  	33
	 14.1
	  	Basic Terms of Non-Competition	  	33
	 14.2
	  	Sale by Affiliates	  	34
	 14.3
	  	Private Label K-Cups	  	34
	 14.4
	  	Termination of Non-Competition	  	34
	 14.5
	  	Most Favored Nation	  	34
		
	15.     Term and Termination of Agreement	  	34
	 15.1
	  	Term	  	34
	 15.2
	  	Termination for Cause	  	35
	 15.3
	  	Diedrich Termination Rights	  	35
	 15.4
	  	Keurig Termination Rights	  	36
		
	16.     Obligations on Termination	  	36
		
	17.     Confidentiality of Customers; Confidentiality	  	37
		
	18.     Indemnification	  	39
	 18.1
	  	Keurig Indemnification of Diedrich	  	39
	 18.2
	  	Diedrich Indemnification of Keurig	  	39

  

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has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission. 
  

					
	19.     General	  	39
	 19.1
	  	Scope of Agreement	  	39
	 19.2
	  	Additional Agreements	  	39
	 19.3
	  	Force Majeure	  	39
	 19.4
	  	No Implied Waivers	  	40
	 19.5
	  	Acknowledgments	  	40
	 19.6
	  	Final Agreement	  	40
	 19.7
	  	Severability	  	40
	 19.8
	  	Relationship of the Parties	  	40
	 19.9
	  	Waiver of Jury Trial	  	41
	 19.10
	  	Headings; Counterparts	  	41
	 19.11
	  	Assignment	  	41
	 19.12
	  	Notices	  	41
	 19.13
	  	Arbitration	  	41
	 19.14
	  	Governing Law; Jurisdiction	  	42

  

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