Document:

cdcx_ex102.htm

Exhibit 10.2

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [...***...], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

AMENDMENT

 

Manufacturing and Supply Agreement between
W. R. Grace & Co.-Conn. and ChromaDex, Inc.

 

This Amendment to the Manufacturing and Supply Agreement (the “Amendment”) is made and effective as of February 27, 2017 (the “Effective Date”) by and between W. R Grace & Co.-Conn. (“GRACE”) and ChromaDex, Inc. (“ChromaDex”).

 

RECITALS

 

WHEREAS, GRACE and ChromaDex entered into a certain Manufacturing and Supply Agreement effective January 1, 2016 (the “Agreement”) whereby GRACE agreed to sell to ChromaDex and ChromaDex agreed to purchase from GRACE [...***...] defined in the specifications contained in Exhibit A of the Quality Agreement between the parties (the “Product”) pursuant to the terms and conditions set forth therein;

 

WHEREAS, GRACE and ChromaDex desire and wish to amend the Agreement as set forth herein.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in consideration of the mutual obligations herein contained, the parties hereto agree as follows:

 

I.       Past Due Invoices

ChromaDex shall, not later than [...***...], make payment in full to GRACE for the following past due invoices:

 

	
 
	
·
	Invoice [...***...], dated [...***...], in the amount of $[...***...]
	
 
	
·
	Invoice [...***...], dated [...***...], in the amount of $[...***...]
	
 
	
·
	Invoice [...***...], dated [...***...], in the amount of $[...***...]
	
 
	
·
	Invoice [...***...], dated [...***...], in the amount of $[...***...]
	
 
	
·
	Invoice [...***...], dated [...***...], In the amount of $[...***...]

 

Notwithstanding any terms of the Agreement or this Amendment to the contrary, a failure by ChromaDex to make payment on the entire amount owed under all five of these invoices by [...***...] shall entitle GRACE to terminate the Agreement (including this Amendment) for material breach at any time after [...***...], without any requirement for a cure period, and with GRACE retaining all rights to pursue any remedy provided for under the terms of the Agreement, as well as any and all other remedies provide for at law or at equity.

 

For avoidance of doubt, ChromaDex’s compliance with Section II of this Amendment does not in any way restrict GRACE’s rights under the terms of this Section I.

 

II.      Purchase Orders and Purchase Obligations from [...***...]

ChromaDex shall (a) not later than [...***...] after the Effective Date of this Amendment, submit purchase orders (the “Forecast Orders”) to GRACE for a total of [...***...] of Product (the “[...***...] Remaining Volume”); and (b) take delivery of the [...***...] Remaining Volume not later than [...***...].

 

Notwithstanding any terms of the Agreement or this Amendment to the contrary, a failure by ChromaDex to (a) submit the Forecast Orders not later than [...***...] after the Effective Date of this Amendment and (b) take delivery of the [...***...] Remaining Volume by [...***...] shall entitle GRACE to terminate the Agreement (including this Amendment) for material breach at any time after [...***...], without any requirement for a cure period, and with GRACE retaining all rights to pursue any remedy provided for under the terms of the Agreement, as well as any and all other remedies provide for at law or at equity.

 

III.     Payment for the Purchase Orders and Purchase Obligations from [...***...]

ChromaDex shall make payment in full to GRACE for the Forecast Orders not later than [...***...].

 

Notwithstanding any terms of the Agreement or this Amendment to the contrary, a failure by ChromaDex to pay for the Forecast Orders in full by [...***...] shall entitle GRACE to terminate the Agreement (including this Amendment) for material breach at any time after [...***...], without any requirement

 

	 
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for a cure period, and with GRACE retaining all rights to pursue any remedy provided for under the terms of the Agreement, as well as any and all other remedies provide for at law or at equity

 

IV.  Orders and Forecasts

Section 1(f) (“Orders’) of the Agreement is deleted in its entirety and replaced by the following:

 

“(f) Orders Beginning on [...***...], and every [...***...] thereafter, ChromaDex shall provide GRACE with a rolling forecast of ChromaDex’s projected purchases of Product for the following [...***...] (the “Product Forecast”). For all Product Forecasts provided by ChromaDex to GRACE in calendar years [...***...] through the end of the Term, the first [...***...] of each such Product Forecast shall be a binding forecast of ChromaDex’s purchases. Each binding forecast, regardless of the calendar year or month in which ChromaDex provides it is a “Binding Forecast” All Product Forecasts, including any Binding Forecasts, are subject to GRACE’s prior written acceptance, which will not be unreasonably withheld. ChromaDex will place firm orders for Product with GRACE to meet each Binding Forecast. ChromaDex Product orders will contain the quantity and delivery date for each order. For avoidance of doubt, all purchase orders must be issued no later than [...***...] prior to the end of the applicable Binding Forecast period, and a failure to comply with this requirement for any given Binding Forecast period is a material breach of this Agreement. ChromaDex may not cancel any purchase order accepted by GRACE without GRACE’s written consent. In addition to the above Product Forecast, ChromaDex shall provide GRACE with a non-binding forecast of ChromaDex’s projected purchases of Product for the next [...***...] beyond the then-current Product Forecast [...***...]”

 

For avoidance of doubt, ChromaDex’s compliance with any given Section of this Amendment does not in any way restrict GRACE’S rights under the terms of any other Section of this Amendment.

 

Except as amended and supplemented hereby, all of the terms and conditions of the Agreement shall remain and continue in full force and effect and apply hereto. Capitalized terms not otherwise defined herein shall have the meaning given in the Agreement.

 

IN WITNESS THEREOF, the authorized representatives of the parties have executed this Amendment to the Manufacturing and Supply Agreement effective as of the Effective Date.

 

	
W. R. Grace & Co.-Conn.
	
 
	
ChromaDex, Inc.
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Signature:
	
/s/ Brett Reynolds 
	
 
	
Signature:
	
/s/ Troy Rhonemus 
	
 

	
Name:
	
Brett Reynolds 
	
 
	
Name: 
	
Troy Rhonemus
	
 

	
Title:
	
Global Business Director 
	
 
	
Title:
	
COO 
	
 

	
Date:
	
3/1/2017
	
 
	
Date:
	
3/1/2017 
	
 

 

	 
	2cdcx_ex103.htm

Exhibit 10.3

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [...***...], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

SECOND AMENDMENT

 

Manufacturing and Supply Agreement between
W. R. Grace & Co.-Conn. and ChromaDex, Inc.

 

This Second Amendment to the Manufacturing and Supply Agreement (the “Amendment”) is made and effective as of January 1, 2018 (the “Effective Date”) by and between W. R. Grace & Co.-Conn.(“GRACE”) and ChromaDex. Inc. (“ChromaDex”).

 

RECITALS

 

WHEREAS, GRACE and ChromaDex entered into a certain Manufacturing and Supply Agreement effective January 1, 2016 (the “Agreement”), and an Amendment to the Agreement effective February 27, 2017, whereby GRACE agreed to sell to ChromaDex and ChromaDex agreed to purchase from GRACE [...***...] defined in the specifications contained in Exhibit A of the Quality Agreement between the parties (the “Product”) pursuant to the terms and conditions set forth therein;

 

WHEREAS, GRACE and ChromaDex desire and wish to further amend the Agreement as set forth herein, with the understanding that all other provisions of the Agreement and Amendment shall remain unchanged.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in consideration of the mutual obligations herein contained, the parties hereto agree as follows:

 

I.    Product 

The definition of Product is deleted in its entirety and replaced with the following:

  

“Product” shall mean the [...***...] defined by the Specifications and, collectively, refers to Product A and Product B. Products A and B are specifically defined as follows:

	
 
	
·
	“Product A” shall mean Product that [...***...], followed by [...***...], followed by [...***...], and that [...***...] in the Specification.
	
 
	
·
	“Product B” shall mean Product that [...***...], followed by [...***...], followed by [...***...], that [...***...]in the Specification, and [...***...].”

 

II.   Forecasts 

The following is added as a new sentence at the end of Section 1(f):

 

“Notwithstanding any other terms of this Section 1(f) to the contrary, ChromaDex shall provide reasonable prior written notice of any forecasted orders for Product manufactured to compliance with 21 CFR Part 211.”

 

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

The following is added as a new Section 1(l)(ii)(A):

 

“(A) Should Grace determine that the intermediate [...***...]for Product [...***...] exceeds the [...***...], Grace will provide notification by phone to the ChromaDex contact person designated in the Quality Agreement by phone. ChromaDex will have [...***...] from the time of such call (the “Response Period”) to inform Grace whether to perform a [...***...] on the applicable Product [...***...]. If ChromaDex 

 

	 
	
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does not respond within such time, Grace may, at its sole discretion perform [...***...] and, with respect to each of the [...***...] manufactured in calendar year [...***...], the applicable price for that batch of Product will [...***...]. Each party’s obligations under the Agreement still withstanding, Grace shall have no liability specifically with regards to such decision.”

 

The following is added as a new Section 1(I)(ii)(B):

 

“(B) Should ChromaDex respond within the Response Period and decide not to have such Product [...***...] undergo [...***...], ChromaDex agrees that the [...***...] for the applicable batch of Product are acceptable and ChromaDex shall not reject such batch of Product on the basis of to its [...***...]. Each party’s obligations under the Agreement still withstanding, Grace shall have no liability specifically with regards to [...***...] in such batch [...***...].”

 

IV.  Purchase Obligations 

The following is added to the end of the first paragraph of Section 4:

 

“ChromaDex shall purchase not less than [...***...]of Product from GRACE during the period [...***...], and a total of not less than [...***...]during the period [...***...]and a total of not less than [...***...]during the period [...***...]. GRACE shall make commercially reasonable efforts to have the capacity to manufacture and supply ChromaDex with [...***...]of Product during the period [...***...]. For avoidance of doubt, ChromaDex’s obligations with respect to its rolling and binding forecasts are not altered by any minimum purchase obligations.”

 

V.   Supply Continuity 

Section 5 of the Agreement is amended to add a new paragraph 5(e):

 

“(e) The Parties will jointly use commercially reasonable efforts to identify and target potential areas for cost reduction with respect to Product manufacture. Representatives of the parties will meet not less than [...***...] per [...***...]to discuss and agree on such cost reduction efforts. [...***...] [...***...] Ownership rights with respect to any information developed with respect to the process of manufacturing Product shall be determined according to [...***...] of the Agreement.”

 

	 
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V.   Product Price 

Exhibit B of the Agreement is deleted in its entirety and replaced by the attached Exhibit B.

 

Except as amended and supplemented hereby, all of the terms and conditions of the Agreement and Amendment shall remain and continue in full force and effect and apply hereto. Capitalized terms not otherwise defined herein shall have the meaning given in the Agreement. This Second Amendment shall become effective as of the Effective Date when executed by the parties hereto.

 

IN WITNESS THEREOF, the authorized representatives of the parties have executed this Second Amendment to the Manufacturing and Supply Agreement effective as of the Effective Date.

 

	
W.R. Grace & Co.-Conn.
	
ChromaDex, Inc.

	
 
	
 
	
 
	
 
	
 
	
 

	
Signature:
	
/s/ Sandra L. Wisniewski 
	
 
	
Signature:
	
/s/ Troy Rhonemus 
	
 

	
Name:
	
Sandra L. Wisniewski 
	
 
	
Name:
	
Troy Rhonemus 
	
 

	
Title:
	
President, Materials Technologies 
	
 
	
Title:
	
EVP 
	
 

	
Date:
	
Jan 25, 2018 
	
 
	
Date:
	
1/26/2018 
	
 

 

	 
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Exhibit B: Purchase Price

 

The Product prices are as follows:

 

[...***...] produced in calendar year [...***...]:

 

	
Product A
	
$[...***...]

	
Product B:
	
$[...***...]

 

If reprocessing is required for any of the [...***...] produced in calendar year [...***...] by way of a [...***...] after the Product has been [...***...] following an [...***...], [...***...]. If reprocessing is not required for any of the initial batches by way of a [...***...]after the Product has been [...***...] following an [...***...], [...***...]:

  

	
Product A:
	
$[...***...]

	
 
	
 

	
Product B:
	
$[...***...]

  

For avoidance of doubt, the above-listed prices apply only to Product manufactured to compliance with [...***...]. The parties will meet to agree on prices for Product manufactured to [...***...].

 

	 
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