Document:

apls-ex101_47.htm

Exhibit 10.1

 

Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) is the type of information that the registrant treats as private or confidential. Double asterisks denote omissions.

 

AMENDED AND RESTATED SUPPLY AGREEMENT

 

by and between

Apellis Pharmaceuticals, Inc.,

together with

APELLIS switzerland gmbh

and

NOF CORPORATION

 

 

 

 
 
 

 

 

This AMENDED AND RESTATED SUPPLY AGREEMENT (this “Agreement”) is entered into effective as of February 12, 2021 (the “Effective Date”), by and between: 

(a) (i) Apellis Pharmaceuticals, Inc., a corporation duly organized and existing under the laws of the State of Delaware and having its principal office at 100 Fifth Avenue, Waltham, Massachusetts 02451, U.S.A., together with its subsidiary,  (ii) APELLIS SWITZERLAND GmbH, a corporation having its principal office at Zahlerweg 10, 6300 Zug, Switzerland CH-6302 (collectively, “Apellis”) 

and 

(b) NOF CORPORATION, a corporation duly organized and existing under the laws of Japan and having its principal office at 20-3, Ebisu 4-chome, Shibuya-ku, Tokyo 150-6019 Japan (hereinafter referred to as “NOF”).

WHEREAS, APELLIS PHARMACEUTICALS, INC. and NOF entered into the certain DEVELOPMENT AND CLINICAL SUPPLY AGREEMENT effective as of November 1, 2016 (the “Original Agreement”), pursuant to which NOF performed certain development services and manufactured certain materials for use in clinical trials; and 

WHEREAS, Apellis and NOF wish to supersede the Original Agreement with this Agreement to, among other things, include commercial supply matters.

NOW THEREFORE, Apellis and NOF, intending to be legally bound, hereby agree as follows:

1.INTRODUCTION

1.1Apellis desires that NOF supply activated polyethyleneglycol derivative (“SUNBRIGHT [**]” as defined in Section 2.51) in accordance with the terms and conditions set forth herein; and

1.2NOF has the capability and expertise to Manufacture and supply the SUNBRIGHT [**] in conformity with applicable laws, rules and regulations and the other terms of this Agreement, and desires to Manufacture and supply Apellis the SUNBRIGHT [**] in accordance with the terms and conditions set herein.

2.DEFINITIONS

The following terms, whether used in the singular or plural, shall have the following meanings for purposes of this Agreement:  

2.1“Affiliate” means any entity directly or indirectly controlled by, controlling, or under common control with, a Party, where “control” means direct or indirect possession of (i) the power to direct or cause direction of the management and policies of such entity (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise), or (ii) more than fifty percent (50%) of the voting securities of such entity. 

2.2“Apellis IP” means (i) all technology, know-how, inventions, discoveries, ideas, concepts, trade-secrets, improvements, processes, process improvements, information, or data, whether patentable or not, which are related to the Drug Substance or Drug Product, including those that arise from the Manufacturing services hereunder; and (ii) any intellectual property rights therein. For the avoidance of doubt, manufacturing process of SUNBRIGHT [**], including those that arise from the Manufacturing services hereunder is excluded from Apellis IP. 

2.3“Apellis Property” has the meaning set forth in Section 12.1.

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2.4“Batch” means the SUNBRIGHT [**] that results from a single Manufacturing process, inclusive of Materials and testing.

2.5“Batch Record” means the complete written record of the history of the Batch and its production and processing thereof in accordance with the Master Batch Record, including Materials, raw data, production records, sampling documentation, in-process test results, release data, investigative and corrective action reports, deviation reports, all applicable processing data (including any pertinent output from instrumentation), the Batch Release, Certificate of Analysis and any other related controls required by cGMPs.

2.6“Batch Release” means the final written approval, signed by NOF’s (or its subcontractor’s or CMO’s, as applicable) relevant quality assurance (“QA”)/quality control (“QC”) officer, marking the culmination of the quality process through which a Batch is shown to conform to cGMPs, the applicable Specifications, and all applicable Laws. 

2.7“Business Day” has the meaning set forth in Section 15.4.

2.8“Certificate of Analysis” means the written certificate of analysis for each Batch in a form reasonably acceptable to Apellis and signed by NOF’s relevant QA/QC officer, which certifies the actual content of the Batch.  

2.9“CMO” means a subcontractor of NOF which performs a step in the Manufacture of SUNBRIGHT [**] on behalf of NOF as designated in Exhibit F. Exhibit F may be updated with the agreement of the Parties from time to time. 

2.10“cGMPs” means the part of quality assurance which ensures that the SUNBRIGHT [**] is consistently produced and controlled in accordance with the then applicable current good manufacturing practices relating to the Manufacture of SUNBRIGHT [**], including the current Good Manufacturing Practices as specified in the United States Code of Federal Regulations (the “CFR”) Part 210, the European Union (“EU”) Good Manufacturing Guidelines (Part II), the ICH Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients (Q7), and the MHLW GMP/GQP ordinances and accompanying regulations in Japan, as applicable quality standards appropriate to their intended use as defined in ICH Q7 Guideline.  If additional requests for the cGMPs are needed, Apellis and NOF shall cooperate with each other to fulfill such requests.  

2.11“Confidential Information” means all information, data, know-how, and all other proprietary and confidential business, technical, and financial data disclosed hereunder, by one Party (the “Disclosing Party”) or any of its Affiliates to the other Party (the “Receiving Party”) or any of its Affiliates, except to the extent such information:  (i) at the time of disclosure, is generally available to the public, other than by a breach of the Receiving Party or any of its Affiliates of any confidentiality obligation owed to the Disclosing Party or any of its Affiliates; (ii) after disclosure hereunder, becomes generally available to the public, except through breach by the Receiving Party or any of its Affiliates of this Agreement or any other confidentiality obligation owed by the Receiving Party or any of its Affiliates to the Disclosing Party or any of its Affiliates; (iii) the Receiving Party can demonstrate by contemporaneous written records was in its or its Affiliate’s possession prior to the time of such disclosure by the Disclosing Party or any of its Affiliates hereunder, and was not acquired directly or indirectly from the Disclosing Party or any of its Affiliates; (iv) becomes available to the Receiving Party from a Third Party (as defined in Section 2.44) that is not legally prohibited from disclosing such Confidential Information, provided such Confidential Information was not acquired directly or indirectly from the Disclosing Party or any of its Affiliates; or (v) the Receiving Party can demonstrate by contemporaneous written records was developed by or for the 

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Receiving Party or any of its Affiliates independently of the disclosure of Confidential Information by the Disclosing Party or any of its Affiliates.  All Apellis Property, whether disclosed by Apellis or its Affiliates to NOF or its Affiliates or developed under this Agreement, is considered Confidential Information of Apellis and not of NOF, with Apellis considered the Disclosing Party and NOF considered the Receiving Party, and NOF may not rely on clauses (iii), (iv) or (v) with respect thereto.

2.12“Delivery” or “Deliver” or “Delivered” means NOF’s delivery of SUNBRIGHT [**] pursuant to a given Firm Order in accordance with the Delivery Terms and the provisions of this Agreement.

2.13“Delivery Address” means, with respect to a given order of SUNBRIGHT [**], the address where the quantities of SUNBRIGHT [**] under such order are to be shipped, as set forth in the applicable order.

2.14“Delivery Date” means the date by which Apellis shall take delivery of SUNBRIGHT [**] as set forth in a Firm Order.

2.15“Delivery Terms” means DAP (Incoterms 2010) NOF’s designated Facility for the finished, packaged and labelled SUNBRIGHT [**].

2.16“Disclosing Party” has the meaning set forth in Section 2.11.

2.17“Drug Product” means a finished dosage form of a product containing the Drug Substance. 

2.18“Drug Product IND” means an investigational new drug application for a Drug Product, and any supplements or amendments thereto, as may be filed with the FDA or applicable Regulatory Agency with jurisdiction over the Drug Product during or after the term hereof or any corresponding foreign application, registration, or certification of each jurisdiction in the Territory.

2.19“Drug Product NDA” means new drug application for a Drug Product, and any supplements or amendments thereto, as may be filed with the FDA or applicable Regulatory Agency with jurisdiction over the Drug Product during or after the term hereof or any corresponding foreign application, registration, or certification of each jurisdiction in the Territory.

2.20“Drug Substance” means the pharmaceutical ingredient obtained by conjugation with SUNBRIGHT [**].

2.21“DSCSA” means the United States Drug Supply Chain Security Act (21 U.S.C. §581 et seq.) and applicable regulations promulgated thereunder, as amended from time to time.

2.22“Effective Date” has the meaning given in the heading paragraph.

2.23“Facility” means NOF’s manufacturing facility at [**], or any other facility of NOF that Manufactures SUNBRIGHT [**] as may be agreed upon in writing by the Parties.  

2.24“FDA” means the United States Food and Drug Administration, or any successor entity.

2.25“Firm Commitment” shall have the meaning set forth in Section 4.7(a).

2.26“Firm Order” has the meaning set forth in Section 4.7(f).

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2.27“First Commercial Sale” means the first sale for use by the general public after approval of the Drug Product by the applicable Regulatory Agency.

2.28“Indemnified Party” means the Party seeking indemnification for any Liabilities pursuant to Section 13.  

2.29“Indemnifying Party” means the Party responsible for indemnifying the Indemnified Party pursuant to Section 13.

2.30“Laws” means (i) any present and future national, state, local or similar laws (whether under statute, rule, regulation or otherwise) and (ii) requirements under permits, orders, decrees, judgments or directives, and requirements of applicable Regulatory Agencies (including, without limitation, cGMP) (with respect to each of the foregoing, as amended or revised from time to time).

2.31“Liabilities” has the meaning set forth in Section 13.1.

2.32“Manufacture” or “Manufacturing” or “Manufactured” means with respect to SUNBRIGHT [**], all operations performed by or on behalf of NOF for the manufacture and supply of SUNBRIGHT [**] pursuant to this Agreement, including, as applicable, receipt (including testing) and storage of Materials, production, manufacture, visual inspection, packaging, labeling, handling, warehousing, quality control testing (including in-process, release and stability testing), release, as applicable, and shipping of SUNBRIGHT [**], and also including such activities as may be specified in the Master Batch Record.

2.33“Marketing authorization application for the Territory” means the process of reviewing and assessing the dossier to support a medicinal product in view of its marketing which is performed within a legislative framework that defines the requirements necessary for application to the respective regulatory authority.  The application dossier for marketing application is called Marketing Authorization Application in the Territory, or simply registration dossier. 

2.34“Master Batch Record” means the master production instructions for manufacture of a batch of SUNBRIGHT [**].

2.35“Material” means any item, document or article used or related to the development or production of the SUNBRIGHT [**].

2.36“Minimum Purchase Obligation” has the meaning set forth in Exhibit E.

2.37“NOF Supplied Materials” has such meaning as set forth in Section 4.2.

2.38“Party” means Apellis or NOF, as applicable.

2.39“Permitted Variance Deficient Quantities” has the meaning set forth in Section 4.10.

2.40“Permitted Variance Excess Quantities” has the meaning set forth in Section 4.10.

2.41“QA” has the meaning set forth in Section 2.6.

2.42“QC” has the meaning set forth in Section 2.6.

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2.43“Quality Agreement” means the Quality Agreement that defines the individual responsibilities of the Parties as to the quality aspects of Manufacturing and release of the SUNBRIGHT [**] to ensure compliance with the Specifications and applicable Laws, which agreement is attached as Exhibit G, as such agreement may be amended by the Parties from time to time in accordance therewith. 

2.44“Receiving Party” has the meaning set forth in Section 2.11.

2.45“Regulatory Agency” means (i) the FDA and any successor authority; (ii) EMA (European Medicines Agency), European Commission or the Council of the European Union and any successor authorities, (iii) PMDA (Japanese Pharmaceuticals and Medical Devices Agency) and any successor authority; and (iv) any similar governmental agency in the Territory that is responsible for granting manufacturing, marketing, price or reimbursement price authorizations and includes any national, supra-national, state and local regulating group, department, bureau, commission, council and other governmental entity that has jurisdiction over the Drug Substance, or a Drug Product, as applicable, whether with respect to its development, manufacture, handling, storage, transportation, destruction, or otherwise.

2.46“Regulatory Submission” means any application or filing identified in the applicable Statement of Work or required by FDA regulations, as amended from time to time, and the equivalent application or filing for each country or super-national jurisdiction in the Territory, including the Drug Product IND and the Drug Product NDA. 

2.47“Rolling Forecast” shall have the meaning set forth in Section 4.7(a).

2.48“Shelf Life” means the period from Manufacturing date to retest date specified in Certificate of Analysis.

2.49“SOPs” means the applicable standard operating procedures of NOF, including any SOPs relating to the SUNBRIGHT [**], any of the NOF Supplied Materials or any other Material.  

2.50“Specifications” means the applicable specifications, standards, criteria, limits, and other requirements for or related to the SUNBRIGHT [**] provided hereunder, as set forth on Exhibit C and as revised or supplemented by the Parties in writing from time to time pursuant to this Agreement to conform with the specifications for the SUNBRIGHT [**] set forth in the New Drug Application (NDA) approved by the FDA, as such specifications may be modified from time to time in response to actions by the FDA or another Regulatory Agency without the need to amend this Agreement.  

2.51“SUNBRIGHT [**]” means the polyethyleneglycol derivative identified in Exhibit A.

2.52“Supply Failure” shall have the meaning set forth in Section 4.7(e).

2.53“Supply Price” means the supply price to be paid to NOF for the Manufacture and supply of the SUNBRIGHT [**] as set forth on Exhibit B. 

2.54“Territory” means all countries in the world.

2.55“Third Party” means any person or entity other than the Parties and their Affiliates.

3.PERFORMANCE OF THIS AGREEMENT BY NOF’S SUBSIDIARY.  NOF appoints its Affiliate, NOF AMERICA CORPORATION, duly organized under the laws of the state of Delaware, and having its principal office at One North Broadway, Suite 912, White Plains, N.Y. 10601 U.S.A. (“NAC”) as a distributor and representative of NOF for any of communication with Apellis, provided, however, NOF 

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shall cause NAC to abide by the terms and conditions of this Agreement, as if it were a Party hereto, and NOF shall be responsible for any performance of the obligations by NAC.

4.Manufacture of SUNBRIGHT [**]

4.1Manufacture.  NOF shall Manufacture the SUNBRIGHT [**] in accordance with SOPs, the Specifications, applicable Laws (including cGMPs), and the terms of this Agreement and the Quality Agreement.  Except as may be specifically permitted pursuant to Section 4.3 to a specific approved subcontractor, NOF shall Manufacture the SUNBRIGHT [**] only in the Facility.  

4.2NOF Supplied Materials.  Unless otherwise provided for in this Agreement, NOF shall obtain and maintain in the Facility equipment, raw materials, and other associated Materials and resources necessary to Manufacture the SUNBRIGHT [**] (“NOF Supplied Materials”).  NOF shall establish a source of supply for all NOF Supplied Materials sufficient to ensure NOF’s ability to fulfill its obligations hereunder in a timely manner.  

4.3Approval of Subcontracting.  For supply of the SUNBRIGHT [**], NOF shall not subcontract, sublicense or otherwise delegate all or any portion of its obligations under this Agreement without Apellis’s prior written approval; provided, however, that with respect to the specific activities to the specified subcontractors set forth on Exhibit F, a separate written approval shall not be required from Apellis.  To the extent such approvals are granted or activities are subcontracted to NAC, NOF shall (i) fully qualify such subcontractor, and Apellis shall have the right to participate in such qualification process; (ii) ensure that all such qualified subcontractors comply with the provisions of this Agreement; and (iii) be responsible for each such subcontractor’s performance hereunder (including any breach of this Agreement caused by such subcontractor), as if NOF were itself performing such activities.  If additional Process Validation (PV) production at the CMO is needed according to  Apellis’ request, Apellis shall pay for cost associated with protocol, QC testing, and process validation reports provided that such costs will not exceed $[**] for each process validation campaign.

4.4Compliance with Law.  NOF shall perform all Manufacturing under this Agreement in conformance with all applicable Laws, including cGMPs.

4.5Environmental; Health and Safety.  In carrying out its obligations under this Agreement, NOF will comply with all applicable environmental and health and safety laws in Japan, U.S.A. and EU that NOF recognized at the time of this Agreement.  In addition to the foregoing, NOF will take all reasonable actions necessary to avoid spills and other safety concerns to persons and damage to property or the environment resulting from the SUNBRIGHT [**] or any intermediates or raw materials thereof.  NOF shall handle, label, package, store, transport and dispose of all wastes generated in the course of Manufacturing in accordance with all applicable Laws. 

4.6Schedules for Manufacture and Orders for SUNBRIGHT [**].  NOF will Manufacture and Deliver the SUNBRIGHT [**] in accordance with the Firm Orders set forth in Section 4.7.

4.7Forecasts; Orders. 

(a)On or before the [**] of each [**] during the Term of this Agreement, Apellis agrees to provide NOF with a written twenty-four (24) month rolling forecast of Apellis’s projected delivery requirements of SUNBRIGHT [**] during the following twenty-four (24) month period (“Rolling Forecast”).  The quantity of SUNBRIGHT [**] specified for a given month in a given Rolling Forecast shall be subject to the following limitations: (i) the first [**] of the Rolling Forecast shall represent a binding 

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order for the quantities of SUNBRIGHT [**] specified therein, for delivery during such [**] period (“Firm Commitment”) and shall be one hundred percent (100%) binding; (ii) each of the next [**] of the Rolling Forecast shall specify quantities of SUNBRIGHT [**] which are no more than one hundred percent (100%) or less than [**] percent ([**]%) of the quantity of SUNBRIGHT [**] forecasted for such month in the immediately preceding Rolling Forecast provided to NOF; (iii) each of the next [**] of the Rolling Forecast after clause (ii) shall specify quantities of SUNBRIGHT [**] which are no more than one hundred percent (100%) or less than [**] percent ([**]%) of the quantity of SUNBRIGHT [**] forecasted for such month in the immediately preceding Rolling Forecast provided to NOF (each of clause (ii) and (iii) collectively, the “Collared Portion”); and (iv) each of the remaining months shall be good faith non-binding estimates.

(b)By way of example, if the Firm Commitment for SUNBRIGHT [**] is [**], then: (1) each of [**] through [**] of a given Rolling Forecast shall not vary from the immediately preceding Rolling Forecast provided to NOF [**]; (2) each of months [**] shall specify quantities of SUNBRIGHT [**] which are no more than one hundred percent (100%) or less than [**] percent ([**]%) of the quantity forecasted for such months when such months were the [**] months, respectively, of the last Rolling Forecast provided to NOF; (3) each of months [**] shall specify quantities of SUNBRIGHT [**] which are no more than one hundred percent (100%) or less than [**] percent ([**]%) of the quantity forecasted for such months when such months were the [**] months, respectively, of the last Rolling Forecast provided to NOF, and (4) the remaining months shall be non-binding good-faith estimate of the quantities of SUNBRIGHT [**] to be ordered for delivery during such period. 

(c)An example of the foregoing Rolling Forecast and Collared Portions is attached hereto as Exhibit H.  

(d)Within [**] of receipt of the Rolling Forecast, NOF shall reply in writing whether it accepts the quantities proposed and to meet the delivery dates proposed in the Rolling Forecast; provided, however, NOF shall have no ability to reject or not accept a Rolling Forecast or Firm Commitment to the extent such Rolling Forecast and Firm Commitments are consistent with the foregoing and the terms and conditions of this Agreement.  If the Rolling Forecast is inconsistent with the foregoing or this Agreement, the Parties shall discuss in good faith and use their reasonable efforts to revise the Rolling Forecast; provided, however, that NOF shall use commercially reasonable effort to accept any part of the Rolling Forecast which is inconsistent with the Firm Commitment or the Collared Portion.  NOF agrees to Manufacture and supply, and Apellis agrees to purchase, the quantities of SUNBRIGHT [**] set forth in the Firm Commitment, in accordance with this Agreement.  In addition and in order to provide Apellis with the necessary transparency it needs to enable Apellis to provide NOF with reasonable forecasts, NOF will provide Apellis with a manufacturing and delivery plan and any related information into its or its subcontractors’ capacity or ordering limitations.  NOF shall provide access to and information regarding its CMO and ordering commitments therefrom.

(e)For purposes of clarity, the Parties acknowledge that (a) NOF is not the exclusive or partially exclusive supplier of SUNBRIGHT [**] or any polyethyleneglycol derivative to Apellis, (b) Apellis may purchase SUNBRIGHT [**] or any polyethyleneglycol derivative from any Third Party, and (c) Apellis has not limited its remedies hereby to only those specified for a Supply Failure or material breach by NOF. “Supply Failure” shall have the meaning that if NOF is unable to supply at least [**]% of any Firm Order for SUNBRIGHT [**] within the Firm Commitment within [**] after the Delivery Date set forth on the applicable Firm Order for any reason (other than Force Majeure not caused by Apellis).

(f)“Firm Order” means a purchase order for SUNBRIGHT [**] issued by Apellis under this Agreement that specifies the quantity of SUNBRIGHT [**] ordered, the required Delivery Date, and the Delivery Address (as well as any specific shipping instructions, if applicable), in each instance in 

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accordance with this Agreement. Apellis shall place Firm Orders for SUNBRIGHT [**] in accordance with the Firm Commitment portion of its Rolling Forecast for the relevant period at least [**] before the requested Delivery Date.  Firm Orders will be made on such form of purchase order or document as Apellis may specify from time to time in writing; provided that the terms and conditions of this Agreement shall be controlling over any terms and conditions included in any Firm Order.  Any term or condition of such Firm Order that is different from or contrary to the terms and conditions of this Agreement shall be void, unless otherwise agreed between the Parties in writing.

(g)NOF agrees to retain [**] of each lot of SUNBRIGHT [**] produced for either (i) [**] after product inventory at NOF runs out, or (ii) [**] after the retest date, whichever is longer.

4.8Changes to Manufacture.  Any material changes to the Manufacture process or the Specifications shall require the Parties’ mutual written consent in accordance with the Quality Agreement, and an applicable change to the Master Batch Record in accordance with Section 15.7 of this Agreement, before implementation.  Notwithstanding anything herein to the contrary or in the Quality Agreement, except as otherwise agreed to by Apellis in writing, NOF shall not amend, change, or supplement any of the following without Apellis's prior written consent:  (1) the Specifications; (2) the Materials; (3) the specifications for Materials that have regulatory impact (e.g., specification is listed in the regulatory filing) or the potential for quality impact on the SUNBRIGHT [**]; (4) the source of Materials that have regulatory impact (e.g., supplier is listed in the regulatory filing) or the potential for quality impact on the SUNBRIGHT [**]; (5) the equipment and machinery, other than in-kind replacements, used in the Manufacture of SUNBRIGHT [**] that have a direct impact on the quality of the SUNBRIGHT [**]; (6) the test methods used in connection with the Manufacturing of SUNBRIGHT [**] that have regulatory impact (e.g., method is listed in the regulatory filing) or the potential for quality impact on the SUNBRIGHT [**]; or (7) the process for Manufacturing SUNBRIGHT [**].  If any of the foregoing changes are required by Regulatory Agency or  a change in cGMP and such requirement is solely directed to SUNBRIGHT [**], then Apellis shall be responsible for reimbursing NOF for the costs of such required change and, in all other cases, NOF shall bear all costs of such change.

4.9Minimum Purchase Obligation.  

(a)Apellis agrees to purchase SUNBRIGHT [**] from NOF under the estimated annual forecasts in Exhibit D, to the extent set forth in the Firm Commitment portion of the Rolling Forecasts and subject to the Minimum Purchase Obligations set forth in Exhibit E.  Except as expressly set forth in Exhibit E, Apellis shall order from NOF, and NOF shall supply, at least the minimum amount of the SUNBRIGHT [**] for delivery as provided in Exhibit E attached hereto and incorporated herein, or of its proportionate amount of such SUNBRIGHT [**] in case of less than [**]. If Apellis fails to purchase the quantity of SUNBRIGHT [**] which satisfies the Minimum Purchase Obligation for a particular time period,  Apellis shall pay NOF the amount equal to [**]% of the remaining quantity of the Minimum Purchase Obligation for such time period without affecting the obligations of Apellis to purchase and pay for 100% of the Firm Orders previously issued. Beginning [**], the  Parties shall discuss in good faith quantities of Minimum Purchase Obligation for calendar years [**]. 

(b)Notwithstanding the foregoing, Apellis may terminate the Minimum Purchase Obligation for the  remaining term of this Agreement by providing notice to NOF on or before October 1 of the preceding year, subject to the buy-out payment obligations provided in this Section.  In the case Apellis terminates the Minimum Purchase Obligation for the remaining Term of this Agreement (“Buy-Out Option ”), then, as Apellis’s exclusive liability and NOF’s sole remedy, Apellis shall pay NOF an amount equal to the Buy-Out Calculation for [**] percent ([**]%) of the aggregate of the remaining Minimum Purchase Obligation for remaining time periods thereafter of the Term of this Agreement; provided, 

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however, if this Agreement is terminated by NOF for convenience or by Apellis for NOF’s breach, Apellis shall have no obligation to pay any further Minimum Purchase Obligation and the Buy-Out Calculation shall be of no force or effect. 

(c)The amount of the payment required to be made under Section 4.9(a) and Section  4.9(b) for Buy-Out Option shall be calculated based on the applicable per-gram Supply Price set forth in Exhibit B (“Buy-Out Calculation”). Invoices for the appropriate payment will be issued by NOF within [**] from the end of the applicable time period or the effective date of NOF’s receipt of the applicable buy-out notice, as the case may be, and shall be payable within [**] of the date of receipt of the invoice from NOF.

(d)Nothing herein shall be construed as limiting the amount of SUNBRIGHT [**] that Apellis may purchase from NOF, nor the amount of SUNBRIGHT [**] that NOF may supply to Apellis, in any given calendar year during the Term of this Agreement, subject only to the applicable provisions relating to Rolling Forecasts, as set forth in Section 4.7.

(e)For purposes of clarification, Apellis may exercise Buy-Out Option pursuant to this Section 4.9 without terminating this Agreement, and such exercise of Buy-Out Option shall not be construed to be a termination of this Agreement but instead this Agreement shall remain as an agreement without the Minimum Purchase Obligation for the relevant time period.    

4.10Delivery Against Firm Orders.  NOF will acknowledge all Firm Orders submitted under Section 4.7(f) within [**] following receipt of same.  NOF shall Deliver SUNBRIGHT [**] only against specific Firm Orders.  NOF shall make reasonable effort to Deliver SUNBRIGHT [**] under each Firm Order on the Delivery Date specified in the applicable Firm Order; provided, however, that Delivery of SUNBRIGHT [**] within [**] before or after the Delivery Date may be permissible. The Delivery Date may be changed with agreement of the Parties.  NOF shall Deliver SUNBRIGHT [**] under each Firm Order in the quantities set forth in such Firm Order; provided that NOF shall be deemed to have satisfied its obligations with respect to the quantity of a given SUNBRIGHT [**] if the actual quantity of SUNBRIGHT [**] is within plus or minus [**] percent (+/-[**]%) of the quantity of such SUNBRIGHT [**] set forth in the applicable Firm Order (the amount of such excess quantity of SUNBRIGHT [**] actually Delivered that is above the amount requested in the Firm Order, if any, the “Permitted Variance Excess Quantities”, and the amount of such deficient quantity of SUNBRIGHT [**] actually Delivered that is below the amount requested in the Firm Order, if any, the “Permitted Variance Deficient Quantities”).  For the avoidance of doubt, Apellis shall have no obligation to pay for any quantity of SUNBRIGHT [**] delivered in excess of the Permitted Variance Excess Quantities.  The Facility shall be indicated on documents accompanying each Delivery of SUNBRIGHT [**].  In the event NOF will fail to meet a Delivery Date set forth in a Firm Order, NOF shall bear the incremental costs required for expedited transport above and beyond the cost incurred by the method outlined in the Delivery Terms. In the event that Apellis fails to take delivery of the SUNBRIGHT [**] on the Delivery Date, Apellis will be responsible for any costs incurred by NOF in connection with a delay in delivery.  For the avoidance of doubt, any Permitted Variance Excess Quantities shall count against the Minimum Purchase Obligations in the then current period.

4.11Quality Control and Batch Release.  NOF shall provide to Apellis copies of the current and approved Master Batch Record and validated analytical test methods and validation protocols and reports through a secure electronic portal, and all such documents must be provided in English and any updates or revisions thereto must also be provided in English.  NOF and, where applicable, its subcontractor or CMO, shall perform such quality control tests as indicated in the Specifications, as required by applicable Law and regulatory requirements and in accordance with the validated analytical test methods and written 

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procedures.  NOF shall provide through a secure electronic portal, and where applicable, its subcontractor’s or CMO’s Certificate of Analysis and investigations for Out of Specification (OOS) and for deviations of manufactured Batches  must be provided in English to Apellis at least [**] prior to the Delivery Date of the corresponding Batches of SUNBRIGHT [**] in accordance with the Quality Agreement. Executed Batch Records and executed quality control data package for each Batch in the original language (Japanese) shall be provided through a secure electronic portal. Should any Batch fail to meet the standards set forth in the Specifications, Apellis may, at its option, investigate the cause of such failure or require NOF, its subcontractor or CMO to do so and to provide Apellis with a written report summarizing the results of such investigations.  For clarity, all documents provided pursuant to this Section 4.11 through an electronic portal may be provided in read only format so long as NOF, its subcontractor or CMO maintains hard copies of all such documents and Apellis can access such documents through the electronic portal for a period of [**], or such longer period as may be required by cGMP. Notwithstanding the foregoing, from a security standpoint, all such documents may be removed from the portal after [**] of their upload; provided that (a) NOF notifies Apellis at least [**] prior to such removal and (b) during such [**] period or longer period as may be required by cGMP, all such documents shall be re-uploaded to the electronic portal for [**] within [**] upon  Apellis’s requests.  In addition, Apellis agrees that Master Batch Record, Executed Batch Records and executed quality control data packages shall be handled based on the separately agreed Confidential Agreement effective as of [**].

4.12NOF Obligations.  NOF agrees that it shall not enter into any agreement with any Third Party that shall have a conflict of interest with performance of its obligations under this Agreement and neither NOF nor its Affiliates shall intentionally or knowingly conduct or otherwise carry out at any time during the Term any activities that may prejudice the quality, safety, efficacy, Manufacture or delivery of the SUNBRIGHT [**].  As between the Parties, NOF shall be solely responsible, at its sole cost and expense, for performance of all Manufacturing. In furtherance of the foregoing, NOF agrees to provide, at its sole cost and expense, all labor and expertise necessary for the performance of the Manufacturing of SUNBRIGHT [**] as well as all facilities, equipment, machinery and Materials (other than Apellis Supplied Materials) necessary to Manufacture the SUNBRIGHT [**], including maintaining sufficient stocks of Materials necessary to supply Apellis’s requirements of SUNBRIGHT [**] under this Agreement.

4.13Safety Stock.  NOF shall  maintain a safety stock of the [**] raw material in a quantity that is sufficient to Manufacture at least [**] of SUNBRIGHT [**] (the “Safety Stock”) from [**] and thereafter throughout the Term.  This Safety Stock shall remain separate and distinct from any other quantities of [**] inventory held at NOF’s Facility and shall be stored by NOF.  NOF will maintain the appropriate level of Safety Stock by promptly replenishing that quantity of [**] used in such supply in accordance with Section 4.7.  NOF will manage Safety Stock to fulfill Apellis purchase orders on a routine basis to prevent units of [**] being held in the Safety Stock from exceeding their posted expiration date.  NOF shall replenish its Safety Stock within [**] of use pursuant to this Section 4.13 (the “Replenishment Period”).  NOF shall within [**] of the end of the Replenishment Period notify Apellis in writing of its inability to replenish the Safety Stock as aforesaid.  Upon expiration or earlier termination of this Agreement, Apellis shall purchase the Safety Stock in accordance with Section 9.3. 

4.14Packaging.  All SUNBRIGHT [**] supplied hereunder shall be packaged in accordance with the Specifications and the Quality Agreement. Without limiting the foregoing, all SUNBRIGHT [**] supplied hereunder shall also be labeled with a traceable batch number and the date of Manufacture.

4.15Transfer of Title. Title to SUNBRIGHT [**] supplied hereunder shall pass to Apellis contemporaneously with the transfer of risk of loss, as established by the Delivery Terms.

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5.PROJECT MANAGEMENT; CONTACTS

Each Party shall designate in writing one person to be that Party’s project manager with overall responsibility for issues associated with the performance of this Agreement.  Each Party may designate one or more additional contact persons whom the other Party may contact with respect to particular matters. Each Party may substitute or replace its project manager and additional contact persons at any time by providing written notice to the other Party.  Each Party shall make its project manager and other contact persons available for status meetings, telephone consultation, and otherwise as reasonably required to facilitate the performance of the Manufacturing services in accordance with this Agreement.  The project managers shall hold meetings at such times as the Parties so elect to do so but shall meet no less frequently [**].  The initial project managers and the additional contact persons who shall be contacted by NOF or Apellis in regard to various matters are: 

Apellis:

					
	
Department
	
Function
	
Name
	
Tel. Number
	
E-mail

	
CMC
	
Manufacturing
	
[**]
	
[**]
	
[**]

	
QA
	
QA, Contract
	
[**]
	
[**]
	
[**]

	
Analytical development and QC
	
QC
	
[**]
	
[**]
	
[**]

 

	

	
NOF:

					
	
Department
	
Function
	
Name
	
Tel. Number
	
E-mail

	
 
	
 
	
 
	
 
	
 

	
NAC
	
Manager, Sales of DDS Product
	
[**]
	
[**]
	
[**]

 

6.FEES

6.1Price.  In full consideration for the Manufacture and supply of SUNBRIGHT [**], Apellis shall pay NOF the Supply Price for the SUNBRIGHT [**] provided under this Agreement as set forth in Exhibit B.

6.2Invoice.  NOF shall submit invoices of [**] percent ([**]%) of Supply Price to Apellis after the receipt of each Firm Order from Apellis hereunder and invoices of remaining [**] percent ([**]%) of Supply Price to Apellis simultaneously with the delivery to Apellis of the Batch Release documentation pursuant to Section 4.11.  Apellis shall pay NOF [**]% of Supply Price within [**] of the invoice. Upon quality assurance disposition by Apellis and written acceptance of the Batch Release documentation, Apellis shall pay NOF [**]% of Supply Price within [**] of the invoice and prior to Delivery of the SUNBRIGHT [**], provided however, NOF may change the payment terms to any other terms, including, but not limited to advance payment, depending on the credit status of Apellis; provided, however, if the Delivery is received more than [**] after the required Delivery Date and Apellis accepts such delayed shipment, NOF shall issue, and Apellis shall receive, a [**] percent ([**]%) discount off the invoiced Supply Price for such shipment.  If Apellis fails to pay any invoice by the due date, NOF is not required to ship the Firm Order until Apellis makes the payment. Notwithstanding the foregoing, if Apellis fails to pay by the payment due date under this Agreement, NOF may (i) reject Firm Orders submitted by Apellis or cancel accepted Firm Orders (applicable only for the initial invoice), or (ii) terminate this Agreement pursuant to Section 9.2.(a).

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6.3Taxes.  Apellis shall have obligation to pay all taxes and duties allocated to it under DAP certain location agreed by the Parties (Incoterms 2010).

7.STORAGE; DELIVERY; ACCEPTANCE AND REJECTION

7.1Storage, Delivery and Shipping Terms.  NOF is responsible for maintaining and monitoring the appropriate temperature storage conditions for all Material and SUNBRIGHT [**] while Material and SUNBRIGHT [**] are under its control.  NOF is also responsible for packaging SUNBRIGHT [**] in a manner that will ensure maintenance of the appropriate physical and temperature conditions during shipment. All Apellis orders shall be shipped DAP (Incoterms 2010) from Facility.   

7.2Acceptance and Rejection.  In the event that any SUNBRIGHT [**] delivered to Apellis or any Apellis designated location fails to conform to the Specifications, was not Manufactured in accordance with cGMP or the Quality Agreement, is damaged or defective, is otherwise adulterated or misbranded under applicable Laws, or has not been stored or shipped in such a manner that ensures maintenance of the appropriate physical and temperature conditions or has obvious defects, Apellis may reject such Batch by providing NOF written notice within [**] of the Delivery of the SUNBRIGHT [**]. Obvious defects shall include any defects reasonably discoverable on visual examination of representative samples of a consignment.  Apellis shall notify NOF in writing of any non-obvious defects promptly upon discovery thereof but in no event later than after the Shelf Life of the applicable SUNBRIGHT [**] that are not rejected within the foregoing applicable period will be deemed to have been accepted by Apellis, and any defect or nonconformity thereof will be deemed waived by Apellis.  Apellis shall use commercially reasonable efforts to test a quantity of the SUNBRIGHT [**] delivered by NOF in order to verify that such quantity satisfies the Specifications. Any notice of rejection given hereunder shall specify the applicable nonconformity and furnish such other written evidence or other documentation as may be reasonably requested by NOF.  Apellis shall ship, at NOF’s expense, such allegedly nonconforming SUNBRIGHT [**] to NOF’s facility for inspection and testing by NOF and, if NOF’s inspection and testing reveals to NOF’s reasonable satisfaction or the independent laboratory confirms pursuant to Section 7.3 or it is resolved pursuant to arbitration set forth in Section 15.16 that any quantity of the SUNBRIGHT [**] supplied by NOF does not conform to the Specifications or is otherwise defective, NOF shall, at Apellis’s discretion, either (a) replace such nonconforming SUNBRIGHT [**] in a timely manner at no additional cost to Apellis or (b) refund Apellis the total Supply Price paid or payable by Apellis with respect to such non-conforming SUNBRIGHT [**]. Any dispute between the Parties regarding the quality of any quantity of the SUNBRIGHT [**] supplied shall be resolved in accordance with the procedure set forth in Section 7.3. The Parties shall determine in good faith how to dispose of any nonconforming SUNBRIGHT [**], provided that Apellis shall have no financial liability for the disposition or resale of nonconforming SUNBRIGHT [**].  EXCEPT FOR SUCH OTHER REMEDIES AND OBLIGATIONS SET FORTH IN THIS AGREEMENT, INCLUDING NOF’S INDEMNIFICATION OBLIGATIONS AND APELLIS’S RIGHT TO TERMINATE THIS AGREEMENT, THIS SECTION 7.2 SETS FORTH THE SOLE REMEDY OF APELLIS AND ENTIRE LIABILITY OF NOF FOR FAILURE OF SUNBRIGHT [**] TO CONFORM TO THE SPECIFICATIONS OR FOR THE SALE OF SUNBRIGHT [**] THAT IS DEFECTIVE, OR IS OTHERWISE ADULTERATED OR MISBRANDED UNDER APPLICABLE LAWS, OR HAS NOT BEEN MANUFACTURED IN ACCORDANCE WITH CGMP OR THE QUALITY AGREEMENT OR OTHERWISE STORED OR SHIPPED IN SUCH A MANNER THAT ENSURES MAINTENANCE OF THE APPROPRIATE PHYSICAL AND TEMPERATURE CONDITIONS.  

7.3Conflict Resolution.  In the event that a dispute arises between the Parties under Section 7.2 due to analytical issues, the resolution shall conform to cGMP guidance on out-of-Specification results and shall proceed in stages as follows:  The first stage requires immediate communication between scientists 

12

 

 
 
 

 

representing both Parties to determine that the methods are being executed in the same manner at both sites, if applicable. Secondly, carefully controlled and split samples shall be exchanged to attempt to resolve the issue, if applicable. Should there be a failure to achieve resolution within a reasonable time, scientists from both Parties shall meet to work through the analysis of one or more mutually agreed sample(s).  If the dispute is not resolved within [**], the Parties agree to submit a sample of the quantity in question to an independent test facility to be agreed upon by both Parties, such agreement not to be unreasonably withheld, and to accept the results of the testing performed by that facility as binding with regard to the quantity from which the sample was taken for purposes of this Agreement.  Apellis will engage the independent test facility and pay the charges unless the results show that the quantity was nonconforming, in which case NOF shall pay the charges. If the Parties are unable to settle a dispute under Section 7.2 that is not due to analytical issues, then upon the demand of either Party, the matter shall be submitted to binding arbitration set forth in Section 15.16. 

8.REGULATORY MATTERS

8.1Regulatory Support.  NOF shall cooperate with Apellis as reasonably requested with respect to Regulatory Submissions in the Territory regarding the Drug Substance or Drug Product or that are otherwise necessary to conduct clinical trials with the Drug Product, to obtain or maintain Regulatory Submissions and/or any Drug Product NDA, and/or to market and sell the Drug Product, including providing Apellis with all reports, authorizations, certificates, methodologies, specifications and other documentation and/or information in the possession or under the control of NOF (or any of its Affiliates) relating to the Manufacture of SUNBRIGHT [**] or any component thereof reasonably requested by Apellis for any of the foregoing; provided that (a)  to the extent the reports, authorizations, certificates, methodologies, specifications and other documentation and/or information are within the scope or of a similar nature to those set forth on Exhibit I or similar or of the same scope as that which has previously been provided to Apellis (including in connection with the Original Agreement) (“NOF Specific Information”), NOF shall be required to provide Apellis with all such authorizations, certificates, methodologies, specifications and other documentation and/or information, provided that the Parties discuss and agree the extent of both provision by NOF of and use by Apellis of NOF Specific Information to be used for Regulatory submissions to [**] regulatory agency prior to the submission, and (b) to the extent authorizations, certificates, methodologies, specifications and other documentation and/or information are not within the scope of the foregoing clause (a), the Parties shall discuss the conditions under which such shall be provided to Apellis or made directly available to the applicable Regulatory Agency. As stated in the Quality Agreement, NOF shall make available to Apellis at the Facility all documents reasonably requested by Apellis regarding the SUNBRIGHT [**] and the Manufacturing thereof that may be necessary or helpful for preparing Regulatory Submissions or communicating with Regulatory Agencies relating to the Drug Substance or Drug Product and/or obtaining or maintaining any Drug Product NDA.  NOF may charge Apellis fees if NOF conducts additional tests to get data to cooperate with Apellis with respect to the Regulatory Submissions and Apellis shall pay the fees. The Parties shall discuss and agree amounts of the fees from time to time.

8.2Ownership of Regulatory Filings.  Except as specifically agreed otherwise by the Parties, Apellis shall be the sole owner of all Regulatory Submissions and all governmental approvals obtained from any Regulatory Agency with respect to the Drug Substance or the Drug Product, including any Drug Product NDA.

8.3Interactions with Regulatory Authorities.  Apellis shall be responsible for the preparation and filing of any Regulatory Submissions and for all contacts and communications with any Regulatory Authorities with respect to matters specifically relating to Manufacture of SUNBRIGHT [**] or any component thereof.  NOF shall notify Apellis immediately (and in no event later than [**]) after NOF 

13

 

 
 
 

 

receives any contact or communication from any Regulatory Authority related in any way to the Manufacture of SUNBRIGHT [**] or which could be reasonably expected to have an adverse effect on the Manufacture of SUNBRIGHT [**].  NOF will provide Apellis with copies of any such correspondence or other communication and shall consult with Apellis regarding the response to any inquiry or observation from any Regulatory Authority, and Apellis, at its discretion, shall control and/or participate in any further contacts or communications relating to the Manufacture of SUNBRIGHT [**].  

9.TERM AND TERMINATION

9.1Term.  This Agreement shall commence on the Effective Date and shall continue until December 31, 2025, unless earlier terminated pursuant to this Section 9 (the “Term”).  

9.2Termination. 

(a)Termination for Breach.  Either Party may terminate this Agreement by giving written notice to the other Party if such other Party is in material breach of any material term or obligation under this Agreement, including any material breach of any material term or obligation under the Quality Agreement, and such termination shall become effective [**] after such notice given if such other Party has failed to cure the breach within [**] period.  For clarity, the Parties agree that if NOF delivers [**] or more batches of SUNBRIGHT [**] that fail to conform to the Specifications, are defective, not Manufactured in accordance with cGMP or the Quality Agreement or are otherwise adulterated or misbranded under applicable Laws, or if there are [**] or more Supply Failures, NOF shall be deemed to be in material breach of this Agreement. 

(b)Termination for Adverse Health or Safety Reasons.  Apellis may terminate this Agreement hereunder upon written notice in the event that:  (i)  Apellis determines, in its discretion, that there are significant safety or efficacy problems relating to the Drug Substance or the Drug Product; (ii) authorization or permission to use the Drug Substance or the Drug Product is withdrawn by an applicable Regulatory Agency; (iii) either Party receives information from a Regulatory Agency that indicates that approval of a Regulatory Submission is highly unlikely or is irrevocably rejected; or (iv) Apellis irrevocably withdraws the Regulatory Submission.

(c)Termination for Bankruptcy.  To the extent permitted under applicable Law, either Party may terminate this Agreement in its entirety effective immediately with written notice if the other Party files for bankruptcy, is adjudicated bankrupt, files a petition under insolvency Laws, is dissolved or has a receiver appointed for substantially all of its property.

(d)Termination by Mutual Agreement.  The Parties may terminate this Agreement at any time by mutual written agreement.

(e)Termination for Convenience.  Either Party may terminate this Agreement at any time for convenience by providing twenty-four (24) months’ written notice to the other Party.

9.3Consequences of Termination.  

(a)Notwithstanding anything to the contrary provided in this Agreement, expiration or termination of this Agreement shall not relieve the Parties of any obligations accruing prior to the effective date of such expiration or termination, and shall not terminate any then-outstanding Firm Orders and NOF shall continue to Manufacture and supply any SUNBRIGHT [**] that is the subject of any then outstanding Firm Order.  Upon the expiration or termination of this Agreement, each Party shall (i) return to the other Party or destroy, at the election of the other Party, all documents and written materials 

14

 

 
 
 

 

containing, reflecting, incorporating or based on the Confidential Information of such other Party; (ii) permanently erase all of the other Party’s Confidential Information from its computer systems (except for that which is stored in archival back-up in accordance with such Party’s standard practice); and (iii) certify in writing to the other Party that it has complied with the requirements of this clause; provided that NOF shall continue to comply with its continuing obligations under Section 8. 

(b)If this Agreement is terminated (i) by NOF pursuant to Section 9.2(a) (material breach) or Section 9.2(c) (bankruptcy) or (ii) by Apellis other than pursuant to Section 9.2(a) (material breach) or Section 9.2(c) (bankruptcy), then, in addition to its obligation to perform under the outstanding Firm Orders (including those to be issued pursuant to Section 9.3(c)), Apellis, in accordance with Section 9.3(d), shall pay NOF an amount equal to [**]-percent ([**]%) of the remaining quantity of the Minimum Purchase Obligation for the time period in which such termination occurred (“Initial MPO Period”) and [**] percent ([**]%) of the then remaining aggregate unpaid Minimum Purchase Obligation for the remaining time period thereafter (“Remaining MPO Period”), except to the extent the Minimum Purchase Obligation has been earlier terminated pursuant to Section 4.9.  

(c)If this Agreement is terminated (i) by NOF pursuant to Section 9.2(a) (material breach) or Section 9.2(c) (bankruptcy) or (ii) by Apellis pursuant to Section 9.2(e) (convenience), then, in addition to its obligation to perform under the outstanding Firm Orders, Apellis shall place Firm Orders for SUNBRIGHT [**] in accordance with the remaining Firm Commitment and NOF shall deliver such SUNBRIGHT [**] and Apellis, in accordance with Section 9.3(d), shall purchase and pay for such delivered SUNBRIGHT [**]; provided, however, that the foregoing amounts shall be creditable against any Minimum Purchase Obligation payments to be paid pursuant to Section 9.3(b). 

(d)If a termination of this Agreement falls within Section 9.3(b) and/or 9.3(c), Apellis shall pay NOF for the amount of the Firm Commitment not yet paid plus the percentage amount of the Minimum Purchase Obligation for the Initial MPO Period and the Remaining MPO Period (less the Firm Commitment).  Invoices for the appropriate payment will be issued by NOF, and shall be payable within [**] of the date of receipt of the invoice from NOF by Apellis.  By way of example and without limiting the foregoing (and using round numbers for simplicity), if a termination of this Agreement falls within the Initial MPO Period and with the following assumptions: 

(i)Apellis has a Minimum Purchase Obligation of $[**] ($[**] of which is during the Initial MPO Period and $[**] of which is for the Remaining MPO Period); and

(ii)a Firm Commitment of $[**];

Then, Apellis shall pay NOF an amount equal to $[**] calculated as follows:

$[**] (for the outstanding Firm Commitment (payable in accordance with this Agreement after delivery of the relevant SUNBRIGHT [**])) 

+ 

$[**] (for the Minimum Purchase Obligation for the Initial MPO Period [**] 

+ 

$[**] (the Minimum Purchase Obligation for the Remaining MPO Period)). 

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(e)If this Agreement is terminated (i) by Apellis pursuant to 9.2(a) (material breach) or Section 9.2(c) (bankruptcy), or (ii) by the Parties pursuant to Section 9.2(d) (mutual agreement), then the Minimum Purchase Obligation shall be no longer of any force or effect and Apellis shall have no obligation to pay any Minimum Purchase Obligation.

(f)If this Agreement is terminated (i) by NOF pursuant to 9.2(a) (material breach) or Section 9.2(c) (bankruptcy) or (ii) by Apellis other than pursuant to Section 9.2(a) (material breach) or Section 9.2(c) (bankruptcy), Apellis shall also be required to purchase from NOF the quantity of Safety Stock existing as of the time of such termination (if any), provided that all such Safety Stock meets the representations, warranties and covenants set forth in this Agreement), and in connection therewith, NOF shall Deliver all such quantities of Safety Stock in accordance with this Agreement, and Apellis shall pay NOF the cost of the Safety Stock.  Notwithstanding the foregoing or anything to the contrary contained herein, from and after the delivery of any notice of termination pursuant to this Agreement, NOF shall not replenish or otherwise add to the quantity of Safety Stock then being held for Apellis pursuant to Section 4.13.  Invoices for the appropriate payment(s) will be issued by NOF, and shall be payable within [**] of the date of receipt of the invoice from NOF by Apellis.

(g)If this Agreement is terminated (i) by NOF pursuant to 9.2(e) (convenience) or (ii) by Apellis pursuant to Section 9.2(a) (material breach) or Section 9.2(c) (bankruptcy), at the request of Apellis, NOF shall assist Apellis in effecting a smooth transition to an alternate supplier(s) for the manufacture of SUNBRIGHT [**] and [**].  Without limiting the generality of the foregoing, at the request of Apellis, NOF shall provide the manufacturing process and analytical methods description including specifications for SUNBRIGHT [**] and [**] to support the technical transfer of the Manufacture of SUNBRIGHT [**] to an alternate source(s); provided, however, that with respect to [**], which is the raw material of [**], NOF shall not be obligated to provide the manufacturing process and analytical methods description including specifications therefor. The Parties shall discuss supply and purchase of [**] in good faith. In addition to the Manufacture and supply of any SUNBRIGHT [**] that is the subject of an issued Firm Order, if this Agreement is terminated by Apellis pursuant to Section 9.2(a) or Section 9.2(c) or by NOF pursuant to Section 9.2(e), NOF, for up to an additional [**] period, shall Manufacture and supply SUNBRIGHT [**] to Apellis until Apellis is able to validate and qualify an alternative supplier of SUNBRIGHT [**].

10.REPRESENTATIONS AND WARRANTIES 

10.1NOF Representations and Warranties

(a)Product Quality.  NOF represents and warrants that all SUNBRIGHT [**] delivered under this Agreement shall:  (i) for its Shelf Life meet the Specifications and shall not be adulterated or misbranded under any Laws; (ii) have been Manufactured in conformation with all applicable SOPs, and cGMPs and all applicable Laws and the Quality Agreement; and (iii) be transferred to Apellis free and clear of any security interests, lien or encumbrances.  NOF represents and warrants that it will Manufacture the SUNBRIGHT [**] in a professional and workmanlike manner and in compliance with the all applicable Laws, including cGMPs.  Without limiting the foregoing, NOF represents and warrants that NOF will store, handle, and process all NOF Supplied Materials and Apellis-supplied Materials used in processing or the provision of Manufacturing hereunder in accordance with all SOPs, and all applicable Laws, including cGMPs and the Quality Agreement.  The product warranty contained in Section 10.1(a)(i) does not apply to any SUNBRIGHT [**] that has been subjected to abuse, misuse, neglect, negligence, accident, improper testing, improper installation, improper storage, improper handling, abnormal physical stress, abnormal environmental conditions or use contrary to any written instructions issued by NOF; has been reconstructed, repaired or altered by persons other than NOF or its authorized representative; or has 

16

 

 
 
 

 

been used with any Third Party products, hardware or product that has not been previously approved in writing by NOF.  EXCEPT FOR SUCH OTHER REMEDIES AND OBLIGATIONS SET FORTH IN THIS AGREEMENT, INCLUDING NOF’S INDEMNIFICATION OBLIGATIONS AND APELLIS’S RIGHT TO TERMINATE THIS AGREEMENT, THE SOLE REMEDY OF APELLIS AND THE ENTIRE LIABILITY OF NOF FOR ANY BREACH OF THE PRODUCT WARRANTY SET FORTH IN SECTION 10.1(a)(i) ARE SET FORTH IN SECTION 7.2.

(b)Personnel.  NOF represents and warrants that (a) NOF was not, is not and will not be, and it did not, does not, and will not use in any capacity the services of any person, disqualified or debarred under the Generic Drug Enforcement Act, 21 USC 335a, or otherwise disqualified or debarred by the FDA or any other Regulatory Agency and (b) NOF was not, is not and will not be, and it did not, does not, and will not use in any capacity the services of any person who has been charged or convicted of a crime as defined under the Generic Drug Enforcement Act.  If, during the term of this Agreement, NOF becomes aware that either it or any person performing Manufacturing activities hereunder on behalf of NOF has become or may become disqualified or debarred, NOF shall immediately notify Apellis in writing.

(c)Compliance with Regulatory Agency.  Without limiting any representations and warranties herein, NOF represents and warrants that neither it nor any member of its staff has been charged with or convicted under federal law for conduct relating to the development or approval of any filing or submission to any Regulatory Agency, any active pharmaceutical ingredient, any pharmaceutical product or any services of the type provided by NOF hereunder, or otherwise relating to the regulation of any drug product under any relevant Law.  If at any time NOF or any member of its staff is charged with or convicted under federal Law for conduct relating to the development or approval of any filing or submission to any Regulatory Agency, or otherwise relating to the regulation of any drug product under any relevant Law, NOF shall immediately notify Apellis in writing.

(d)No Third Party Infringement.  To its actual knowledge of NOF, NOF represents, warrants and covenants that in Manufacturing the SUNBRIGHT [**] it has not knowingly infringed, at the time of Effective Date, and shall not knowingly infringe upon the intellectual property rights of any Third Party.

10.2Apellis Representations and Warranties.

(a)Apellis represents and warrants that it has the rights to transfer the Apellis-supplied Materials to NOF for the purposes contemplated herein and to grant the rights granted to NOF hereunder. 

(b)Apellis represents and warrants that the SUNBRIGHT [**] will be used solely for the purpose of manufacturing Drug Substance and/or Drug Product.  

10.3Mutual Warranties.  Each Party represents and warrants to the other that (i) to its knowledge, it has the right to provide the Confidential Information provided hereunder; (ii) it has all requisite power and authority (corporate and otherwise) to enter into this Agreement; (iii) the execution and delivery of this Agreement by the officer or individual whose name is signed on its behalf below has been duly authorized by all necessary actions; (iv) such Party’s execution and delivery of this Agreement and the performance of its obligations hereunder do not and will not conflict with or result in a breach of or a default under its organizational instruments or any other agreement, instrument, order, or Law applicable to it or by which it may be bound; and (v) this Agreement has been duly and validly executed and delivered by it and constitutes its valid and legally binding obligation, enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency or other Laws of general application relating to 

17

 

 
 
 

 

or affecting the enforcement of creditors’ rights and except as enforcement is subject to general equitable principles.

10.4Disclaimer.  EXCEPT AS EXPRESSLY SET FORTH HEREIN, EACH PARTY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS.

11.CONFIDENTIALITY 

11.1NOF Confidentiality Obligations.  During the Term of this Agreement and for a period of [**] thereafter, NOF shall maintain in confidence and shall not use Apellis’s Confidential Information except as authorized under this Agreement and shall not disclose Apellis’s Confidential Information to any Third Party other than: (i) employees, consultant, agents  or permitted subcontractors of NOF or any of NOF’s Affiliates who are bound by similar obligations of confidentiality and nonuse and who have a need to know such information in order to perform their duties in carrying out NOF’s obligations under this Agreement; or (ii) as directed by Apellis in writing.

11.2Apellis Confidentiality Obligations.  During the Term of this Agreement and for a period of [**] thereafter, Apellis shall maintain in confidence and shall not use NOF’s Confidential Information except as authorized under this Agreement and shall not disclose any NOF’s Confidential Information to any Third Party other than: (i) employees, consultants, agents or contractors of Apellis or any of Apellis’s Affiliates who are bound by similar obligations of confidentiality and nonuse and who have a need to know such information in order to perform their duties in carrying out Apellis’s obligations under this Agreement, or in exercising Apellis’s rights under this Agreement, or in order to provide direction or services to Apellis regarding production, testing, storage or quality of the Drug Substance or Drug Product, or regulatory, compliance or other issues related to the Drug Substance or Drug Product; or (ii) Regulatory Agencies in connection with communication(s) or Regulatory Submission(s) regarding the Drug Substance or Drug Product.

11.3Required Disclosure. Notwithstanding Section 11.1 and Section 11.2, in case the Receiving Party is required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any of the Disclosing Party’s Confidential Information pursuant to legal, administrative or judicial action, the Receiving Party may disclose the Confidential Information to comply with the request; provided, that the Receiving Party, to the extent permitted by applicable Law, (a) timely informs the Disclosing Party, (b) uses its best efforts to limit the disclosure and maintain confidentiality to the extent possible and (c) permits the Disclosing Party to attempt by appropriate legal means to limit such disclosure.

11.4Responsibility for Compliance with Confidentiality and Nonuse Obligations.  Each Party shall be responsible for any disclosure, misuse or misappropriation, by such Party, its Affiliates, or the employees, consultants, agents or contractors of such Party or such Party’s Affiliates, of the other Party’s Confidential Information.

11.5Terms of Agreement.  Except for (i) any disclosure that is deemed necessary, in the reasonable judgment of the responsible Party, to comply with applicable Laws (including the rules and regulations of any national stock exchange on which such Party’s securities are traded) or (ii) disclosure to a Party’s or any of its Affiliates’ employees consultants, advisors, agents, contractors or actual or potential licensees, financing sources, investors or acquirers, under reasonable conditions of confidentiality, neither 

18

 

 
 
 

 

Party shall, without the prior written consent of the other Party, disclose in any manner to any Third Party the terms and conditions of this Agreement or use the other Party’s name in any press release, publicity, or advertising without prior written consent.  If Apellis deems it necessary to file this Agreement in accordance with U.S. securities Laws, Apellis shall use reasonable efforts to seek confidential treatment, to the extent consistent with such Laws, for the contents of the Exhibits of this Agreement.

12.INTELLECTUAL PROPERTY

12.1Ownership.  NOF agrees that, as between the Parties, Apellis owns all right, title, and interest in and to the Drug Substance and the Drug Product, as applicable, and all Apellis IP (collectively “Apellis Property”), and to the extent NOF or any of its Affiliates has or may acquire or be deemed to have acquired any rights in Apellis Property, NOF hereby agrees, on behalf of itself and its Affiliates, to transfer and assign, and hereby transfers and assigns, its and its Affiliates’ right, title, and interest in such property to Apellis.  Upon Apellis’s request at any time, NOF shall, and shall require its Affiliates to, deliver to Apellis any and all documents and information necessary to protect Apellis’s interest in the Apellis Property to the extent that such documents and information are not confidential information of a Third Party.  NOF shall promptly notify Apellis in writing of any Apellis Property that arises from the Manufacturing services.  

13.INDEMNIFICATION 

13.1Indemnification by NOF.  NOF shall indemnify, defend, and hold Apellis and its Affiliates and their directors, officers, and employees harmless from and against any and all damages, judgments, claims, suits, actions, costs and expenses (including reasonable attorneys’ fees) (collectively, “Liabilities”) arising out of any Third Party claim to the extent resulting from (i) NOF’s breach of this Agreement, including the Quality Agreement; (ii) any inability to process or release the Drug Substance or Drug Product due to NOF’s failure to comply with applicable Laws; or (iii) the grossly negligent acts or omissions or willful misconduct of NOF or any of its directors, officers, employees, subcontractors or agents in NOF’s performance of this Agreement. 

13.2Indemnification by Apellis.  Apellis shall indemnify, defend and hold NOF and its Affiliates and their directors, officers, and employees harmless from and against all Liabilities arising out of any Third Party claim to the extent resulting from (i) Apellis's breach of this Agreement including any of its warranties or representations hereunder; (ii) the use of SUNBRIGHT [**] or the manufacture, sale, transfer or other disposition of the Drug Product by Apellis; or (iii) the grossly negligent acts or omissions or willful misconduct of Apellis or any of its directors, officers, employees, subcontractors or agents in Apellis’s performance of this Agreement.

13.3Indemnification Procedure.  Upon notice of any Liability, the Indemnified Party shall promptly notify the Indemnifying Party in writing.  Failure of the Indemnified Party to so notify the Indemnifying Party shall not relieve the Indemnifying Party of its indemnification obligations except to the extent the failure or delay is prejudicial.  The Indemnifying Party shall have control over the defense and any settlement of any such claim for Liability; provided however that (i) the Indemnified Party shall be entitled to participate in the defense of such claim and to employ counsel at its own expense to assist in the handling of such claim; and (ii) the Indemnifying Party shall obtain the prior written approval (not to be unreasonably withheld) from the Indemnified Party before entering into any settlement of such claim.  The Parties shall cooperate in furnishing such information and attending such conferences and hearings as reasonably requested in connection with the defense or prosecution of any Liabilities.  In the event the Indemnifying Party fails to act within a reasonable time after receiving notice, the Indemnified Party shall have the right to employ its own counsel at the expense of the Indemnifying Party.

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13.4Insurance.  NOF shall maintain products and completed operations liability insurance  through the term of this Agreement, which insurance shall afford limits of not less than US$[**] for each occurrence and US$[**] in the aggregate per annum for product liability.  If requested by Apellis, NOF will provide Apellis with a certificate of insurance evidencing the above and showing the name of the issuing company, the policy number, the effective date, the expiration date and the limits of liability.  The insurance certificate shall further provide for a minimum of [**] written notice to NOF and to Apellis of a cancellation of, or material change in, the insurance.

14.LIMITATION OF LIABILITY

14.1EXCEPT FOR LIABILITIES ARISING FROM (I) THE INTENTIONAL MISUSE OR MISAPPROPRIATION OF THE OTHER PARTY’S CONFIDENTIAL INFORMATION OR (II) EACH PARTY’s INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 13, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER OR ANY OF ITS AFFILIATES FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING LOST PROFITS, BUSINESS OR GOODWILL) SUFFERED OR INCURRED BY SUCH OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH THIS AGREEMENT, WHETHER BASED UPON BREACH OF CONTRACT OR TORT, INCLUDING NEGLIGENCE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  IN addition to the limitation of liability set forth above, Except for (A) the INTENTIONAL MISUSE OR MISAPPROPRIATION OF THE OTHER PARTY’S CONFIDENTIAL INFORMATION OR (B) Damages arising out of SUCH PARTY’s GROSS negligence or willful misconduct, NOF’s maximum aggregate liability to compensate APELLIS for all Damages under this AGREEMENT will be set on a per calendar year basis and for the calendar year in which the cause of such liability lies or exists (whether in contract, tort, strict liability, statute, or otherwise) and shall be limited to the AMOUNTS PAID or payable by APELLIS TO NOF in the then most recently completed calendar year.

15.GENERAL PROVISIONS

15.1Independent Contractors.  For purposes of this Agreement, the Parties shall be deemed independent contractors, and neither of the Parties shall be deemed or construed, by virtue of this Agreement, to be the agent, representative, partner or joint venturer of the other Party.  Neither Party shall have any express or implied right or authority to assume or create any obligation on behalf of, or in the name of the other Party, nor to bind the other Party to any contract, agreement or undertaking with any Third Party.  NOF shall make clear to all Third Parties and Affiliates with whom it deals that NOF is a separate entity from Apellis and that NOF does not have the authority to bind Apellis.

15.2Choice of Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York (for clarity, including, with respect to the purchase and sale of SUNBRIGHT [**], the Uniform Commercial Code therein), without regard to its conflicts of law principles.  For the avoidance of doubt, the United Nations Convention on the International Sale of Goods shall not apply to this Agreement.

15.3Binding Effect; No Third Party Beneficiaries.  This Agreement shall be binding upon and inure to the benefit of, and shall be enforceable only by, the Parties and their respective successors and permitted assigns.  It is the explicit intention of the Parties that no person or entity, other than the named Parties or their successors or permitted assigns, is or shall be entitled to bring any action to enforce any provision of this Agreement, as a third party beneficiary or otherwise. 

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15.4Notices.  Any notices or other communication given pursuant to this Agreement shall be written and delivered either by (i) personal delivery, (ii) certified mail, postage prepaid and return receipt requested, (iii) any recognized overnight air courier service, (iv) confirmed facsimile, or (v) email to the relevant Party as follows or to such other address of which the receiving Party gives notice pursuant to this Section 15.4:

		
	
If to Apellis:
	
With a copy to 

	
Apellis Pharmaceuticals, Inc.

100 Fifth Avenue, 3rd Floor

Waltham, MA 02451

Attn: [**]

Email: [**]

(primary recipient)
	
Apellis Pharmaceuticals, Inc.

100 Fifth Avenue, 3rd Floor

Waltham, MA 02451                        

Attn: [**]  

Email: [**]

	
 
	
 

	
If to NOF: 
	
With a copy to: 

	
NOF CORPORATION
20-3, Ebisu 4-chome, Shibuya-ku, 
Tokyo 150-6019, Japan
Attn: Planning & Administration Dept.

DDS Development Division
Telephone:[**]
Facsimile:[**]

Email: [**] 

(primary recipient)
	
NOF AMERICA CORPORATION
1 North Broadway, Suite 912
White Plains, NY 10601 U.S.A.
Attn: [**]
Telephone:[**]
Facsimile:[**]

Email: [**]

 

All notices shall take effect as follows:  (i) upon receipt if delivered either in person or by confirmed facsimile on any business day in the delivery location (the relevant “Business Day”) prior to 6 pm local time; or (ii) on the next succeeding Business Day if delivered either in person or by confirmed facsimile on a non-Business Day or after 6 pm local time; (iii) one (1) Business Day after having been delivered to a recognized air courier for overnight delivery; (iv) the delivery date if delivered by certified mail, return receipt requested; or (v) if delivered by email, when the primary recipient, by an email sent to the email address for the sender stated in this Section 15.4 or by a notice delivered by another method in accordance with this Section 15.4, acknowledges having received that email, with an automatic “read receipt” not constituting acknowledgment of an email for purposes of this Section 15.4.  

15.5Assignment.  The Parties shall not assign this Agreement or any of the rights or obligations hereunder without the prior written consent of the other Party; provided, however, that (a) Apellis shall have the right, without the prior consent of NOF, to assign this Agreement, in whole or in part, to any Affiliate of Apellis, and (b) Apellis shall have the right, without the prior consent of NOF, to assign this Agreement, in whole or in part, to any Third Party (other than to a Third Party whose primary business is manufacture and supply of polyethyleneglycol derivatives) in connection with a sale of all or substantially all of the assets of Apellis to which this Agreement relates, whether by merger, transfer of a going concern, sale of stock, sale of assets or other similar transaction (including by operation of law), in each case upon notice to NOF.  This Agreement shall bind and inure to the benefit of any successors and permitted assignees.  Any prohibited assignments shall be void.  No assignment relieves the assigning Party of any of its obligations under this Agreement.

15.6Force Majeure.  Neither Party shall be liable to the other Party for non-performance or delay in performance to the extent such failure or delay in performing any of its obligations hereunder is not due to its negligence and arises from or caused by any Force Majeure, if the impacted Party shall give 

21

 

 
 
 

 

prompt notice of any such Force Majeure to the other Party.  The impacted Party giving such notice shall thereupon be excused from such of its obligations hereunder as it is thereby disabled from performing for so long as it is so disabled, provided, however, that such impacted Party shall have used reasonable efforts to avoid such occurrence and to commence and continue to take reasonable and diligent actions to recommence performance as quickly as possible. “Force Majeure” shall mean any event beyond the reasonable control of an impacted Party including, strikes, labor troubles, riots, embargo, blockages, transport and customs clearance delays, Acts of God, storms, fires, explosions, earthquakes, floods, tsunamis, pandemics, epidemics, war, acts of authorities and prohibitions.  Notwithstanding the foregoing, the COVID-19 Pandemic shall not be considered a Force Majeure event, unless (i) a Party's non-performance or delay in performance is result of laws, regulations or advisory of a governmental authority to combat the COVID-19 Pandemic which the addressees are legally obliged to comply with (e.g. closure of the Facility, quarantine regulations, or requisition of production capacities) and/or (ii) such Party has taken commercially reasonable measures to avoid harmful effects of the COVID-19 Pandemic.  In the event of a Force Majeure that lasts for more than [**] or [**] in any twelve month period, the other Party shall have the right upon written notice to the delayed Party to terminate this Agreement.

15.7Entire Agreement.  This Agreement, which includes any exhibits, schedules, and attachments as well as the Quality Agreement, constitutes the entire understanding of the Parties in connection with the Manufacture of SUNBRIGHT [**] and a complete and exclusive statement of the terms of their agreement with respect thereto (and supersedes and replaces the Original Agreement).  Any term or condition of any purchase order, sales acknowledgement, or document with respect to the Manufacture of the SUNBRIGHT [**] which is in addition to, different from, or contrary to the terms and conditions of this Agreement shall be void. 

15.8Amendment.  This Agreement or any provision hereof shall not be amended, supplemented, or waived except in a writing signed by each of the Parties.

15.9Breach of the Quality Agreement.  Any breach or material breach of the Quality Agreement shall also be deemed a breach or material breach, respectively, of this Agreement.

15.10Waiver.  No failure or delay on the part of the Parties to exercise any right, power, or privilege hereunder or under any instrument executed pursuant hereto shall operate as a waiver; nor shall any single or partial exercise of any right, power, or privilege preclude any other or further exercise thereof or the exercise of any right, power, or privilege. 

15.11Severability.  If either (i) a court of competent jurisdiction hold that a particular provision or requirement of this Agreement violates any applicable Law or (ii) a government agency with jurisdiction definitively advises the Parties that a feature or provision of this Agreement violates Laws over which such department or agency has jurisdiction, then each such provision, feature or requirement shall be fully severable and: (a) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision has never comprised a part hereof; (b) the remaining provisions hereof shall remain in full force and effect and shall not be affected by the severable provision; and (c) the Parties shall in good faith negotiate and substitute a provision as similar to such severable provisions as may be possible and still be legal, valid and enforceable.

15.12Further Assurances.  Each Party shall execute, acknowledge and deliver such further instruments, and take such further actions as may be reasonably necessary or appropriate to carry out the purposes and intent of this Agreement. 

22

 

 
 
 

 

15.13Headings.  All headings in this Agreement are for convenience of reference only and shall affect the interpretation of this Agreement.

15.14Survival.  The rights and obligations of the Parties under Sections 8.2, 9.3, 10.4, 11, 12.1, 13, 14.1 and 15 shall survive the expiration or earlier termination of this Agreement and the obligations of the Parties under Section 11 shall survive for [**] from the expiration or earlier termination of this Agreement.

15.15Counterparts.  This Agreement and any amendment or supplement hereto may be executed in several counterparts, each of which shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument.

15.16Interpretation.  Each Party acknowledges and agrees that: (i) it and its representatives have reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (ii) it has been advised by counsel during the course of negotiation of this Agreement; and (iii) the terms and provisions of this Agreement shall be construed fairly as to each Party and not in favor of or against either Party regardless of which Party was generally responsible for the preparation or drafting of this Agreement.  The headings, captions and table of contents in this Agreement are for convenience of reference only and shall not be considered in construing this Agreement.  In construing this Agreement, except where the context acquires otherwise, (a) use of the singular includes the plural and vice versa; (b) the words “include” “including”, “includes” and “e.g.” means “including without limitation”; (c) the word “or” is used in the inclusive sense that is typically associated with the phrase “and/or”; (d) the words “herein,” “hereof” and “hereunder,” and words of similar import, refer to this Agreement in its entirety and not to any particular provision hereof; (e) the  verb “will” shall be construed to have the same meaning and effect as the word “shall”; (f) use of any gender includes any other gender; (g) whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified; (h) references to a particular Law mean such Law as in effect as of the relevant time, including all rules and regulations thereunder and any successor Law in effect as of the relevant time, and including the then-current amendments thereto; (i) references to a particular person include such person’s successors and assigns to the extent not prohibited by this Agreement; (j) a capitalized term not defined herein but reflecting a different part of speech than a capitalized term which is defined herein shall be interpreted in a correlative manner; (k) the words “Dollar” and “dollar” and the symbol “$” mean U.S. Dollars; (l) the word “notify” or “notice” means a notice in writing; and (m) all references herein to Articles, Sections or Exhibits shall be construed to refer to Articles, Sections and Exhibits of this Agreement.

15.17Arbitration.  The Parties shall finally settle all disputes, controversies or differences which arise between the Parties, out of or in relation to or in connection with this Agreement, which cannot be satisfactorily settled by the Parties, by arbitration in New York City, the State of New York, the United States of America, pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Parties shall conduct the arbitration proceedings in the English language. The award shall be final and binding upon the Parties. Each Party may have judgment upon the award entered in any court having jurisdiction thereof.  At any time, a Party may seek or obtain injunctive relief from the arbitrators or from a court.

 [Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the Effective Date.

 

		
	
Apellis Pharmaceuticals, Inc. (Apellis)
	
NOF CORPORATION (NOF)

	
By:/s/ Nur Nicholson

Nur Nicholson
	
By:/s/ Tsuneharu Miyazaki

Tsuneharu Miyazaki

	
Title: Chief Technical Officer

 
	
Title: Managing Executive Officer,

General Manager, DDS Development Div.

	
Date signed: Feb. 15, 2021
	
Date signed: Feb. 24, 2021

	
APELLIS SWITZERLAND GmbH

By:/s/ Thomas Lackner

Thomas Lackner
	
 

	
Title: SVP, GM International

 
	
 

	
Date signed: Feb. 13, 2021
	
 

 

 
 
 

 

 

 

EXHIBIT A:SUNBRIGHT [**]

EXHIBIT B:Supply Price

EXHIBIT C:Specifications

EXHIBIT D:Nonbinding Estimated Annual Forecast

EXHIBIT E:Minimum Purchase Obligation

EXHIBIT F:                   CMO

EXHIBIT G:Quality Agreement

 

EXHIBIT H:Rolling Forecast Example

 

EXHIBIT I:Types of Regulatory Data and Information

 

 

 

 

 
 
 

 

 

 

 

DB1/ 115119211.24Exhibit 10.1

    

     

    

    
      Execution Version

       

      

      EMPLOYMENT AGREEMENT

       

      THIS EMPLOYMENT AGREEMENT is made and entered into effective as of April 26, 2021 (the “Effective Date”), by and
        among Reliant Bancorp, Inc., a Tennessee corporation (“Company”), Reliant Bank, a bank chartered under the laws of the State of Tennessee (“Bank”), and DeVan Ard, Jr., a resident of the State of Tennessee (“Executive”). Company, Bank, and Executive are sometimes referred to herein collectively as the “Parties,” and each is sometimes referred to herein individually as a “Party.”

       

      R E C I T A L S

       

      A.          Executive is currently employed by Company and Bank as Chief Executive Officer of
          Company and Bank, pursuant to an Employment Agreement by and among Executive, Company, and Bank dated April 15, 2018, as amended by that certain First Amendment to Employment Agreement dated June 22, 2020 (as so amended, the “Prior Employment Agreement”).

       

      B.          The Parties desire to enter into this Agreement in order to restate the terms and
          conditions of Executive’s employment with Company and Bank, with this Agreement to supersede and replace the Prior Employment Agreement.

       

      AGREEMENT

       

      In consideration of the premises set forth above and the mutual agreements hereinafter set forth, as well as other good and valuable consideration, the receipt and sufficiency
        of all of which are hereby acknowledged by the Parties, effective as of the Effective Date, the Parties hereby agree as follows:

       

      1.           Definitions.  When used in this Agreement, the following terms and their variant forms shall have the stated meanings.

       

      (a)          “Affiliate” shall mean,
          with respect to any entity, any other entity that controls, is controlled by, or is under common control with such entity. For this purpose, “control” means ownership of more than 50% of the ordinary voting power of the outstanding equity
          securities of an entity.

       

      (b)          “Agreement” shall mean
          this Employment Agreement together with any amendments hereto made in the manner described in this Agreement.

       

      (c)          “Boards of Directors”
          shall mean, collectively, the board of directors of Company and the board of directors of Bank and, where appropriate, any committees or other designees thereof.

       

      (d)          “Business of Employer”
          shall mean (i) during the period Executive is employed with Company or Bank, the business of commercial, retail, consumer, and mortgage banking, as well as any other business conducted by Company or Bank or any of their respective Affiliates from
          time to time, and (ii) following the termination of Executive’s employment with Company and Bank, the business of commercial, retail, consumer, and mortgage banking, as well as any other business conducted by Company or Bank or any of their
          respective Affiliates as of or during the two-year period immediately prior to the termination of Executive’s employment.

       

      (e)          “Cause” shall mean, in the
          context of the termination of this Agreement by Employer:

       

      
        
          

      

      
      (i)          a material breach of this Agreement by Executive not cured by Executive within 15
          business days after Executive’s receipt of Employer’s written notice of such material breach, including without limitation failure by Executive to perform Executive’s duties and responsibilities in the manner and to the extent required by this
          Agreement;

       

      (ii)        any act by Executive of fraud against, misappropriation from, or dishonesty to
          Company or Bank or any Affiliate of Company or Bank;

       

      (iii)       the conviction of Executive of, or Executive’s plea of guilty or nolo contendere to,
          a felony or any crime involving fraud or moral turpitude;

       

      (iv)       conduct by Executive that amounts to willful misconduct or gross neglect, including
          prolonged absences without the consent of the Boards of Directors (other than due to a condition giving rise to Disability); provided that the nature of such conduct shall be set forth with reasonable
          particularity in a written notice to Executive who shall have 15 business days following delivery of such notice to cure such alleged conduct, provided that such conduct is, in the reasonable discretion
          of the Boards of Directors, susceptible to a cure;

       

      (v)        the exhibition by Executive of a standard of behavior within the scope of or related
          to Executive’s employment that is in violation of any written policy, board committee charter, or code of ethics or business conduct (or similar code) of Company or Bank or any Affiliate of Company or Bank to which Executive is subject; provided that the nature of such behavior shall be set forth with reasonable particularity in a written notice to Executive who shall have 15 business days following delivery of such notice to cure such
          behavior, provided that such behavior is, in the reasonable discretion of the Boards of Directors, susceptible to a cure;

       

      (vi)        conduct or behavior by Executive, including without limitation conduct or behavior
          that is unethical or involves moral turpitude, that, in the reasonable opinion of the Boards of Directors, has harmed or could reasonably be expected to harm, in each case in any material respect, the business or reputation of Company or Bank;

       

      (vii)      the receipt of written notice that any regulatory agency or authority having
          jurisdiction over Company or Bank or any Affiliate of Company or Bank has instituted any form of regulatory action or proceeding against Executive; or

       

      (viii)     the removal of Executive from office and/or the prohibition of Executive from
          participating in the conduct of Bank’s affairs as a result of an order issued under Section 8(e) or Section 8(g) of the Federal Deposit Insurance Act (12 U.S.C. § 1818(e) and (g)).

       

      (f)          “Change in Control” shall
          mean:

       

      (i)         a change in the ownership of Company or Bank within the meaning of Treasury
          Regulations § 1.409A-3(i)(5)(v);

       

      (ii)        a change in the effective control of Company within the meaning of Treasury
          Regulations § 1.409A-3(i)(5)(vi)(A)(2); or

       

      (iii)       a change in the ownership of a substantial portion of Company’s or Bank’s assets
          within the meaning of Treasury Regulations § 1.409A-3(i)(5)(vii), substituting 80% for 40% under Treasury Regulations § 1.409A-3(i)(5)(vii)(A).

       

      
        2

        
          

      

      (g)          “Code” shall mean the
          Internal Revenue Code of 1986, as amended.

       

      (h)          “Competing Business” shall
          mean any person (other than Company and Bank and their respective Affiliates) that is conducting any business that is the same as or substantially similar to the Business of Employer.

       

      (i)          “Confidential Information”
          shall mean all information not generally available to and known by the public, whether spoken, printed, electronic, or in any other form or medium, relating to the business, practices, policies, plans, prospects, operations, results of
          operations, financial condition or results, strategies, know-how, patents, trade secrets, inventions, intellectual property, records, suppliers, vendors, customers, clients, products, services, employees, independent contractors, personnel,
          systems, or internal controls of Company or Bank or any Affiliate of Company or Bank, or of any other person that has entrusted information to Company or Bank or any Affiliate of Company or Bank in confidence, as well as any other information
          that is marked or otherwise identified as confidential or proprietary or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and under the circumstances in which the information is known or used.
          The term “Confidential Information” shall include information developed by Executive in the course of Executive’s employment by Employer as if Employer furnished such information to Executive in the first instance. The term “Confidential
          Information” shall not include information that, through no fault of Executive or person(s) acting in concert with Executive or on Executive’s behalf, is generally available to and known by the public at the time of disclosure to Executive or
          thereafter becomes generally available to and known by the public.

       

      (j)          “Disability” shall mean
          the inability of Executive to perform the essential functions of Executive’s position under this Agreement, even with Employer’s reasonable accommodation, by reason of any medically determinable physical or
          mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 6 months.

       

      (k)          “Employer” shall mean,
          collectively, Company and Bank.

       

      (l)          “Good Reason” shall mean,
          in the context of the termination of this Agreement by Executive:

       

      (i)         a material diminution in Executive’s authority, duties, or responsibilities, as
          compared to Executive’s authority, duties, and responsibilities as of the Effective Date, which is not consented to by Executive in writing;

       

      (ii)        a material diminution in Executive’s Base Salary which is not consented to by
          Executive in writing;

       

      (iii)       a change in the location of Executive’s primary office that requires Executive to
          regularly physically report to an office located 50 miles or more from the location of Executive’s primary office as of the Effective Date, which change is not consented to by Executive in writing; or

       

      (iv)       a material breach of this Agreement by Employer.

       

      (m)          “IRS” shall mean the
          United States Internal Revenue Service.

       

      (n)          “Post-Termination Period”
          shall mean a period of 24 months (subject to extension as set forth in Section 8(f)) following the date of termination of Executive’s employment.

       

        

      
        3

        
          

      

      (o)          “Restricted Area” shall
          mean (i) during the period of Executive’s employment, a radius of 50 miles from each banking office (whether a main office, branch office, or loan or deposit production office) maintained by Bank or any Affiliate of Bank from time to time during
          such period of employment and (ii) following the termination of Executive’s employment, a radius of 50 miles from each banking office (whether a main office, branch office, or loan or deposit production office) maintained by Bank or any Affiliate
          of Bank as of the date of termination of Executive’s employment.

       

      (p)          “Separation from Service”
          shall have the meaning set forth in, and whether Executive has experienced a Separation from Service shall be determined by Employer in accordance with, Treasury Regulations § 1.409A-1(h).

       

      2.           Executive Duties.

       

      (a)          Position; Reporting. 
          Executive shall be employed as Chief Executive Officer of Company and Bank and shall perform and discharge faithfully the duties and responsibilities which may be assigned to Executive from time to time in connection with the conduct of the
          Business of Employer. The duties and responsibilities of Executive shall be commensurate with those of individuals holding similar positions at other banks and bank or financial holding companies similarly organized and of comparable size and
          complexity. Executive shall report directly to the Boards of Directors.

       

      (b)          Full-Time Status.  In addition to the duties
          and responsibilities specifically assigned to Executive pursuant to Section 2(a), Executive shall:

       

      (i)          subject to Section 2(c), during regular business hours, devote substantially
          all of Executive’s time, energy, attention, and skills to the performance of the duties and responsibilities of Executive’s employment (reasonable vacations, approved leaves of absence, and reasonable absences due to illness excepted) and
          faithfully and industriously perform such duties and responsibilities;

       

      (ii)        diligently follow and implement all reasonable and lawful policies and decisions
          communicated to Executive by the Boards of Directors; and

       

      (iii)       timely prepare and provide to the Boards of Directors all reports and accountings as
          may be reasonably requested of Executive.

       

      (c)          Permitted Activities. 
          Executive shall devote substantially all of Executive’s business time, attention, and energies to the Business of Employer and shall not during the Term be engaged (whether or not during normal business hours) in any other significant business or
          professional activity, whether or not such activity is pursued for gain, profit, or other pecuniary advantage, provided that, as long as the following activities do not interfere with Executive’s
          obligations to Employer, this Section 2(c) shall not be construed as preventing Executive from:

       

      (i)         investing Executive’s personal assets in any manner which will not require any
          services on the part of Executive in the operation or affairs of the subject entity and in which Executive’s participation is solely that of a passive investor, provided that such investment activity
          following the Effective Date shall not result in Executive owning beneficially at any time 2% or more of the equity securities of any Competing Business; or

       

      
        4

        
          

      

      (ii)        participating in the activities of civic and professional organizations and
          associations, attending and participating in banking industry or professional development conferences, authoring or publishing papers or books, or teaching, so long as no such activities interfere with the ability of Executive to effectively
          discharge Executive’s duties and responsibilities hereunder, provided that the board of directors of Company or the board of directors of Bank may direct Executive in writing to cease any such activities
          in the event such board of directors reasonably determines that Executive continuing the activities would not be in the best interests of Company or Bank or any one or more of their respective Affiliates.

       

      3.           Term.  The initial term of this Agreement (the “Initial Term”) shall commence on and as of the
        Effective Date and, unless this Agreement is sooner terminated in accordance with its terms, shall end on the date which is the second anniversary of the Effective Date. At the end of the Initial Term (and the end of any one-year renewal term(s)
        herein provided for), this Agreement will automatically renew for an additional, successive term of one year, unless Employer, on the one hand, or Executive, on the other, gives the other Party written notice of its election to terminate this
        Agreement as of the end of the Initial Term (or then-current renewal term) at least 60 days prior to the end of the Initial Term (or then-current renewal term). The Initial Term and any and all such renewal terms are referred to together herein as
        the “Term.”

       

      4.           Compensation.  During the Term of this Agreement, Employer shall compensate Executive as follows:

       

      (a)          Base Salary. 
          Executive shall be compensated at a base annual rate of $550,000 per year (the “Base Salary”). Executive’s Base Salary will be reviewed by the compensation committee of Company’s board
          of directors at least annually, in accordance with the compensation committee’s charter and any procedures adopted by the compensation committee, for adjustment based on an evaluation of Executive’s performance. Executive’s Base Salary will be
          payable in accordance with Employer’s normal payroll practices.

       

      (b)          Annual Cash Incentive Compensation.

       

      (i)         Executive shall be eligible to participate in any cash incentive or bonus plan or
          program of Employer in which other executive officers participate, which may be based on annual performance measures established by the board of directors of Company or its designee, including the compensation committee of the board of directors
          (cash compensation paid or payable to Executive under any and all such cash incentive or bonus plans or programs for any calendar year is referred to as “Annual Cash Incentive Compensation”).

       

      (ii)        Any Annual Cash Incentive Compensation earned shall be payable in cash not later than
          March 15th of the calendar year following the calendar year in which the Annual Cash Incentive Compensation is earned and otherwise in accordance with Employer’s normal practices for the payment of short-term incentives. The payment of any Annual
          Cash Incentive Compensation shall be subject to and conditioned on Executive being employed by Employer on December 31st of the year in which the Annual Cash Incentive Compensation is earned (except as set forth in Section 5(g) in the
          case of the death or Disability of Executive), Executive’s employment with Employer having not been terminated by Employer for Cause prior to the payment of such Annual Cash Incentive Compensation, and the receipt of any approvals or
          non-objections required from or by any regulatory agency or authority having jurisdiction over Company or Bank. The Parties acknowledge that Executive may not be eligible to receive, or Employer may not be permitted to pay, Annual Cash Incentive
          Compensation if Company or Bank is subject to restrictions imposed by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (the “FDIC”), the
          Tennessee Department of Financial Institutions, or any other regulatory agency or authority, or if Company or Bank is otherwise restricted from making payment of Annual Cash Incentive Compensation under applicable law, rule, or regulation.

       

      
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      (c)          Automobile.  Employer will provide Executive
          with an Employer-owned or Employer-leased automobile reasonably satisfactory to Executive and Employer for use by Executive. Employer will provide Executive with a new Employer-owned or Employer-leased automobile not less frequently than every
          three years.

       

      (d)          Club Dues.  Employer will pay on Executive’s
          behalf the reasonable and customary monthly dues for membership at one Middle Tennessee golf or county club.

       

      (e)          Business Expenses. 
          Subject to the reimbursement policies of Employer in effect from time to time, Employer will reimburse Executive for reasonable business expenses incurred by Executive in the performance of Executive’s duties and responsibilities hereunder which
          are consistent with the annual budget approved for the period during which such expenses are incurred; provided, however, that, as a condition to any such
          reimbursement, Executive shall submit verification of the nature and amount of such expenses in accordance with Employer’s reimbursement policies.

       

      (f)          Vacation.  Executive shall be entitled to 20 days paid vacation per calendar year, prorated for any partial calendar year of service. This Section 4(f) shall apply notwithstanding any less generous vacation policy maintained by Employer, but Executive’s use of such paid vacation shall otherwise be in accordance with Employer’s vacation policy (including the provisions, if any,
            relating to annual rollover and pay out upon separation of employment) as in effect from time to time.

       

      (g)          Other Benefits.  In addition to the benefits
          specifically described in this Agreement, Executive shall be entitled to such other benefits as may be available from time to time to employees of Employer generally, including, by way of example only, retirement plan and health, dental, vision,
          life, and disability insurance benefits. All such benefits shall be made available and administered in accordance with the terms of any applicable written benefit plan or, if no written plan exists, Employer’s standard policies and practices
          relating to such benefits.

       

      (h)          Reimbursement of Expenses; In-Kind Benefits. 
          All expenses described in this Agreement as eligible for reimbursement must be incurred by Executive during the Term of this Agreement to be eligible for reimbursement. Any in-kind benefits provided by Employer must be provided during the Term of
          this Agreement. The amount of reimbursable expenses incurred, and the amount of any in-kind benefits provided, in one taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits provided, in any other taxable year.
          Each category of reimbursement shall be paid as soon as administratively practicable, but in no event shall any such reimbursement be paid after the last day of the calendar year following the calendar year in which the expense was incurred.
          Neither rights to reimbursement nor in-kind benefits shall be subject to liquidation or exchange for other benefits.

       

      (i)          Claw Back of
            Compensation.  Executive agrees to repay promptly, at the written request of Employer, any compensation (including incentive compensation) previously paid or otherwise made available to Executive, under this Agreement or any other
          agreement or arrangement with Company or Bank, which is subject to recovery under any law, rule, or regulation (including any rule of any exchange on which any securities of Company are listed or traded). Executive agrees to repay promptly any
          such compensation identified by Company or Bank. If Executive fails to repay any such compensation promptly, Executive agrees that the amount of such compensation may be deducted from any and all other compensation owed to Executive under this
          Agreement or otherwise. Executive acknowledges that Employer may take appropriate disciplinary action (up to, and including, termination of Executive’s employment for Cause) if Executive fails to promptly repay any such compensation.

       

      
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      (j)          No Representations.  Executive acknowledges
          that Employer makes no representations with respect to the tax consequences of any of the compensation or benefits provided for under this Section 4.

       

      5.           Termination of Employment.

       

      (a)          Termination by Employer.  During the Term,
          Executive’s employment may be terminated by Employer:

       

      (i)         at any time for Cause, provided that, in
          order to terminate Executive’s employment for Cause pursuant to this Section 5(a)(i), Employer must deliver to Executive a certified copy of a resolution duly adopted by the board of directors of Company by the affirmative vote of at
          least a majority of all members of the board of directors of Company other than Executive (if Executive is a member of the board of directors) finding that there exists Cause to terminate Executive’s employment; or

       

      (ii)        at any time without Cause (provided that
          Employer shall give Executive at least 30 days prior written notice of termination, or, alternatively, Employer shall have the option to provide Executive a lump sum payment equal to 30 days Base Salary in lieu of such notice, which shall be paid
          to Executive within 30 days after the termination of Executive’s employment), in which event Employer shall (A) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) a
          severance benefit in an amount equal to one times the sum of (1) Executive’s Base Salary as of the date of termination and (2) the average of Executive’s Annual Cash Incentive Compensation for the two years immediately preceding the year in which
          the termination of employment occurs (the “Standard Severance Amount”), said Standard Severance Amount to be payable in equal installments over the course of the 12-month period
          beginning 60 days following the date of termination of Executive’s employment in accordance with Employer’s normal payroll practices, and (B) if Executive is eligible for and timely and properly elects health, dental, vision, and/or prescription
          drug plan benefits continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), timely pay on behalf of Executive the monthly (or other) COBRA
          premiums for such coverage for Executive and his dependents until the earliest of (x) the one-year anniversary of the date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA continuation
          coverage, and (z) the date on which Executive becomes eligible to receive substantially similar coverage from another employer (notice of which eligibility Executive shall promptly give to Employer) (the “Standard Health Coverage Benefit”). If Employer providing Executive the Standard Health Coverage Benefit under this Section 5(a)(ii) would cause Employer to violate the nondiscrimination rules applicable to
          non-grandfathered plans under the Affordable Care Act (the “ACA”), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder,
          the Parties agree to reform clause (B) of this Section 5(a)(ii) in such manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving the Standard Health Coverage Benefit. Notwithstanding the
          foregoing, Employer shall have no obligation to pay the Standard Severance Amount or provide the Standard Health Coverage Benefit contemplated by this Section 5(a)(ii) unless within 50 days after the date of termination of Executive’s
          employment Executive executes and delivers to Employer a separation agreement containing a full release of claims and covenant not to sue, the same to be prepared by and in form and substance reasonably satisfactory to Employer (the “Separation Agreement”), and the Separation Agreement becomes fully effective within 60 days after the date of termination of Executive’s employment. Additionally, Employer shall have no
          obligation to pay the Standard Severance Amount or provide the Standard Health Coverage Benefit contemplated by this Section 5(a)(ii), and the payment and/or provision of the same by Employer shall immediately cease, in the event of a
          breach by Executive of Section 7 or Section 8.

       

      
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      (b)         Termination by Executive.  During the Term,
          Executive’s employment may be terminated by Executive:

       

      (i)         at any time for Good Reason, provided that (A) before terminating his employment for Good Reason, (1) Executive shall give notice to Employer of the existence of Good Reason for termination, which notice must be given by Executive to Employer within 60
          days of the initial existence of the condition(s) giving rise to Good Reason for termination and shall state with reasonable detail the condition(s) giving rise to Good Reason for termination and (2) Employer shall have 30 days from the effective
          date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (B) such termination must occur within 12 months of the initial existence of the condition(s) giving rise to Good Reason for termination. In the event
          of the termination of Executive’s employment for Good Reason, Employer shall (X) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) the Standard Severance Amount (provided that, for the avoidance of doubt, if Executive terminates for Good Reason as defined in Section 1(l)(ii), the Standard Severance Amount will be determined based on Executive’s Base Salary
          immediately prior to the diminution in Base Salary giving rise to termination for Good Reason), in equal installments over the course of the 12-month period beginning 60 days following the date of termination of Executive’s employment in
          accordance with Employer’s normal payroll practices, and (Y) if Executive is eligible for and timely and properly elects health, dental, vision, and/or prescription drug plan benefits continuation coverage under COBRA, provide Executive the
          Standard Health Coverage Benefit (provided that, if Employer providing Executive the Standard Health Coverage Benefit under this clause (Y) would violate the nondiscrimination rules applicable to
          non-grandfathered plans under the ACA, or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform this clause (Y) in such manner as is necessary to comply
          with the ACA while, to the extent reasonably practicable, preserving the Standard Health Coverage Benefit provided for in this clause (Y)). Notwithstanding the foregoing, Employer shall have no obligation to pay the Standard Severance Amount or
          provide the Standard Health Coverage Benefit contemplated by this Section 5(b)(i) unless within 50 days after the date of termination of Executive’s employment Executive executes and delivers to Employer the Separation Agreement and the
          Separation Agreement becomes fully effective within 60 days after the date of termination of Executive’s employment. Additionally, Employer shall have no obligation to pay the Standard Severance Amount or provide the Standard Health Coverage
          Benefit contemplated by this Section 5(b)(i), and the payment and/or provision of the same by Employer shall immediately cease, in the event of a breach by Executive of Section 7 or Section 8; or

       

      (ii)        at any time without Good Reason; provided that
          Executive shall give Employer at least 30 days prior written notice of termination, all or any part of which 30-day notice period Employer may waive for no consideration by giving written notice of the same to Executive.

       

      (c)          Termination Upon
            Disability.  During the Term, Executive’s employment may be terminated by Employer upon the Disability of Executive. For the avoidance of doubt, termination for Disability under this Section 5(c) shall not be considered
          termination without Cause.

       

      (d)          Termination Upon Death.  Executive’s
          employment shall terminate automatically upon the death of Executive. For the avoidance of doubt, termination of Executive’s employment upon the death of Executive under this Section 5(d) shall not be considered termination without Cause.

       

      (e)          Termination by Mutual Agreement.  During the
          Term, Executive’s employment may be terminated at any time by mutual written agreement of the Parties.

       

      
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      (f)          Non-Renewal of Agreement.  For the avoidance
          of doubt, the Parties expressly acknowledge and agree that neither the election by a Party to not renew, and therefore to terminate, this Agreement pursuant to Section 3 nor the termination of Executive’s employment at the end of the Term
          in connection with any such election shall give rise to any severance or other payment or benefit to Executive under this Agreement.

       

      (g)          Effect of Termination.  Upon the termination
          of Executive’s employment, Employer shall have no further obligations to Executive or Executive’s estate, heirs, beneficiaries, executors, administrators, or legal or personal representatives under or with respect to this Agreement, except for
          the payment of any amounts earned and owing under Sections 4 as of or for periods prior to the date of termination of Executive’s employment and for any payment(s) required by Section 5(a)(ii), Section 5(b)(i), or Section
            6; provided that, in the event of the termination of Executive’s employment due to the death or Disability of Executive, Employer shall provide to Executive (or, in the event of Executive’s death,
          Executive’s estate, heirs, or designated beneficiaries, as the case may be) a pro rata portion of the Annual Cash Incentive Compensation that would have been payable to Executive for the year in which Executive’s death or Disability occurs
          (prorated based on the number of days elapsed in such year through the date of termination of Executive’s employment), and such pro rata portion shall be paid not later than March 15th of the calendar year following the calendar year in which
          Executive’s termination of employment occurs and otherwise in accordance with Employer’s normal practices for the payment of short-term incentives.

       

      (h)          Resignations.  Upon the termination of
          Executive’s employment for any reason, (i) if Executive is a member of the board of directors of Company or the board of directors of Bank, or the board of directors of any Affiliate of Company or Bank, Executive shall, at the request of
          Employer, resign from Executive’s position(s) on such boards, and (ii) Executive shall, at the request of Employer, resign from any officer position(s) held by Executive at any Affiliate of Company or Bank, in each case with any and all such
          resignations to be effective not later than the date on which Executive’s employment is terminated unless a later effective date is agreed to by Employer.

       

      6.           Change in Control.

       

      (a)          If within six months prior to or 18 months following a Change in Control Employer (or
          any successor of or to Employer) terminates Executive’s employment without Cause, Employer (or its successor) shall (i) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case
          may be) a severance benefit in an amount equal to 2.5 times the sum of (A) Executive’s Base Salary as of the date of termination and (B) the average of Executive’s Annual Cash Incentive Compensation for the two years immediately preceding the
          year in which the termination of employment occurs (the “Change in Control Severance Amount”), said Change in Control Severance Amount to be payable in equal installments over the course
          of the 24-month period beginning 60 days following the date of termination of Executive’s employment in accordance with Employer’s (or its successor’s) normal payroll practices, and (ii) if Executive is eligible for and timely and properly elects
          health, dental, vision, and/or prescription drug plan benefits continuation coverage under COBRA, timely pay on behalf of Executive the monthly (or other) COBRA premiums for such coverage for Executive and his dependents until the earliest of (A)
          the 18-month anniversary of the date of termination of Executive’s employment, (B) the date Executive is no longer eligible to receive COBRA continuation coverage, and (C) the date on which Executive becomes eligible to receive substantially
          similar coverage from another employer (notice of which eligibility Executive shall promptly give to Employer (or its successor)) (the “Change in Control Health Coverage Benefit”). If
          Employer (or its successor) providing Executive the Change in Control Health Coverage Benefit under this Section 6(a) would cause Employer (or its successor) to violate the nondiscrimination rules applicable to non-grandfathered plans
          under the ACA, or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform clause (ii) of this Section 6(a) in such manner as is necessary to comply
          with the ACA while, to the extent reasonably practicable, preserving the Change in Control Health Coverage Benefit provided for in this Section 6(a). Notwithstanding the foregoing, Employer (or its successor) shall have no obligation to
          pay the Change in Control Severance Amount or provide the Change in Control Health Coverage Benefit contemplated by this Section 6(a) unless within 50 days after the date of termination of Executive’s employment Executive executes and
          delivers to Employer (or its successor) the Separation Agreement and the Separation Agreement becomes fully effective within 60 days after the date of termination of Executive’s employment. Additionally, Employer (or its successor) shall have no
          obligation to pay the Change in Control Severance Amount or provide the Change in Control Health Coverage Benefit contemplated by this Section 6(a), and the payment and/or provision of the same by Employer (or its successor) shall
          immediately cease, in the event of a breach by Executive of Section 7 or Section 8.

       

      
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      (b)          If within six months prior to or 18 months following a Change in Control Executive
          terminates his employment with Employer (or its successor) for Good Reason (provided that (x) before terminating his employment for Good Reason, Executive shall give notice to Employer (or its successor)
          of the existence of Good Reason for termination, which notice must be given by Executive to Employer (or its successor) within 60 days of the initial existence of the condition(s) giving rise to Good Reason for termination and shall state with
          reasonable detail the condition(s) giving rise to Good Reason for termination, and Employer (or its successor) shall have 30 days from the effective date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (y)
          such termination must occur within 12 months of the initial existence of the condition(s) giving rise to Good Reason for termination), Employer (or its successor) shall (i) pay to Executive (or, in the event of Executive’s death, Executive’s
          estate, heirs, or designated beneficiaries, as the case may be) the Change in Control Severance Amount (provided that, for the avoidance of doubt, if Executive terminates for Good Reason as defined in Section
            1(l)(ii), the Change in Control Severance Amount will be determined based on Executive’s Base Salary immediately prior to the diminution in Base Salary giving rise to termination for Good Reason), in equal installments over the course of
          the 24-month period beginning 60 days following the date of termination of Executive’s employment in accordance with Employer’s (or its successor’s) normal payroll practices, and (ii) if Executive is eligible for and timely and properly elects
          health, dental, vision, and/or prescription drug plan benefits continuation coverage under COBRA, provide Executive the Change in Control Health Coverage Benefit (provided that, if Employer (or its
          successor) providing Executive the Change in Control Health Coverage Benefit under this clause (ii) would violate the nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result in the imposition of penalties under the
          ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform this clause (ii) in such manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving the Change in Control
          Health Coverage Benefit provided for in this clause (ii)). Notwithstanding the foregoing, Employer (or its successor) shall have no obligation to pay the Change in Control Severance Amount or provide the Change in Control Health Coverage Benefit
          contemplated by this Section 6(b) unless within 50 days after the date of termination of Executive’s employment Executive executes and delivers to Employer (or its successor) the Separation Agreement and the Separation Agreement becomes
          fully effective within 60 days after the date of termination of Executive’s employment. Additionally, Employer (or its successor) shall have no obligation to pay the Change in Control Severance Amount or provide the Change in Control Health
          Coverage Benefit contemplated by this Section 6(b), and the payment and/or provision of the same by Employer (or its successor) shall immediately cease, in the event of a breach by Executive of Section 7 or Section 8.

       

      (c)          The compensation and benefits provided for in this Section 6 are, in the
          context of a Change in Control, intended to be in lieu of the compensation and benefits provided for in Section 5(a)(ii) and Section 5(b)(i). If Executive becomes entitled to the compensation and/or benefits provided for in this Section
            6, Executive will not also be entitled to the compensation and/or benefits provided for in Section 5(a)(ii) or Section 5(b)(i).

       

      
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      7.           Confidential Information.

       

      (a)          Executive understands and acknowledges that, during the course of Executive’s
          employment with Employer, Executive has had and will have access to, and has learned and will learn of and about, Confidential Information. Executive acknowledges and agrees that all Confidential Information of Company or Bank or their respective
          Affiliates that Executive accesses, receives, learns of, or develops while Executive is employed by Employer, or that Executive has previously accessed, received, learned of, or developed while employed by Employer, shall be and will remain the
          sole and exclusive property of Company and Bank and their respective Affiliates.

       

      (b)          Executive understands and acknowledges that Company and Bank and their respective
          Affiliates have invested, and continue to invest, substantial time, money, and specialized knowledge into developing their resources, building a customer base, generating customer and potential customer lists, training their employees, and
          generally improving their offerings in the field of banking and financial services. Executive understands and acknowledges that, as a result of these efforts, Company and Bank and their respective Affiliates have created and continue to create
          and use Confidential Information, including highly confidential customer and prospective customer information that is subject to extensive measures by Employer to maintain its secrecy, and that the
          Confidential Information provides Company and Bank and their respective Affiliates with a competitive advantage over others in the marketplace. Executive also acknowledges and agrees that Executive is being provided
            and entrusted with access to Employer’s customer and employee relationships and goodwill, that Employer would not provide Executive access to Confidential Information, customer and employee relationships, and goodwill in the absence of
            Executive’s execution of and compliance with this Agreement, and that Employer’s Confidential Information, customer and employee relationships, and goodwill are valuable assets of Employer and are legitimate business interests that are properly
            subject to protection through the covenants contained in this Agreement.

       

      (c)          Executive covenants and agrees (i) to treat all Confidential Information as strictly
          confidential; (ii) not to directly or indirectly disclose, communicate, or make available Confidential Information, or allow it to be disclosed, communicated, or made available, in whole or in part, to any person (including other employees of
          Company or Bank or their respective Affiliates) not having a need to know and the authority to know and use the Confidential Information in connection with the business of Company or Bank or their respective Affiliates; and (iii) not to access or
          use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or
          control of Company or Bank or any of their respective Affiliates, except as required in the performance by Executive of Executive’s authorized employment duties.

       

      (d)          Nothing in this Agreement shall be construed or enforced to prevent disclosure of
          Confidential Information to the extent disclosure is required by applicable law, rule, or regulation or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided
          that the disclosure does not exceed that in fact required by such law, rule, regulation, or order, and, provided further, that, unless prohibited by law, rule, regulation, or order, Executive shall
          promptly provide Employer written notice of any such required disclosure of Confidential Information. Additionally, nothing in this Agreement shall prohibit or restrict Executive (or any attorney for Executive) from (i) initiating communications
          directly with, responding to an inquiry from, providing testimony before, or otherwise participating in any investigation or proceeding that may be conducted by any government agency, regulatory authority, or self-regulatory

          organization, including the Securities and Exchange Commission and the Financial Industry Regulatory Authority, or (ii) reporting possible violations of federal, state, or local
            law or regulation to any government agency or regulatory authority or making other disclosures that are protected under the whistleblower provisions of federal, state, or local law or regulation. Executive shall not need the prior authorization
            of Employer to make any such reports or disclosures and shall not be required to notify Employer that Executive has made such reports or disclosures.

       

      
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      (e)          Notwithstanding any other provision of this Agreement:

       

      (i)          Executive will not be held criminally or
          civilly liable under any federal or state trade secret law for any disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (2) solely
          for the purpose of reporting or investigating a suspected violation of law, or (B) is made in a complaint or other document filed under seal in a lawsuit or other proceeding; and

       

      (ii)        If Executive files a lawsuit for
          retaliation by Employer for reporting a suspected violation of law, Executive may disclose trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive (A) files any document containing trade
          secrets under seal and (B) does not disclose trade secrets, except pursuant to court order.

       

      (f)          Executive understands and acknowledges that Executive’s obligations under this
          Agreement with regard to any particular Confidential Information shall commence, or shall be deemed to have commenced, immediately upon Executive first having access to such Confidential Information (whether before or after the Effective Date)
          and shall continue during and after Executive’s employment by Employer until such time as such Confidential Information has become public knowledge other than as a result of Executive’s breach of this Agreement or a breach by any person acting in
          concert with, at the direction of, or on behalf of Executive.

       

      (g)          At any time upon request by Employer, and in any event upon termination of Executive’s
          employment with Employer, Executive will promptly deliver to Employer all property of Employer or its Affiliates, including without limitation all Confidential Information, vehicles, keys, access cards, credit
            cards, identification cards, equipment, computers, tablets, and mobile and other electronic devices, then in Executive’s possession or control.

       

      8.           Restrictive Covenants. 

       

      (a)          Non-Competition.  Executive agrees that,
          during the Term and, following the termination of Executive’s employment with Employer, for the duration of the Post-Termination Period, Executive will not (except on behalf of or with the prior written consent of Employer) (i) within the
          Restricted Area, either directly or indirectly, on Executive’s own behalf or in the service of or on behalf of others, engage in any business, activity, enterprise, or venture competitive with the Business of Employer; (ii) within the Restricted
          Area, either directly or indirectly, perform for any Competing Business any services that are the same as, or substantially similar to, the services Executive performs or performed for Employer; (iii) within the Restricted Area, accept employment
          with or be employed by any person engaged in any business, activity, enterprise, or venture competitive with the Business of Employer; or (iv) work for or with, consult for, or otherwise be affiliated with or be employed by any person or group of
          persons proposing to establish a new bank or other financial institution within the Restricted Area.

       

      
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      (b)          Non-Solicitation of Customers.  Executive
          agrees that, during the Term and, following the termination of Executive’s employment with Employer, for the duration of the Post-Termination Period, Executive will not directly or indirectly (except on behalf of or with the prior written consent
          of Employer), on Executive’s own behalf or in the service of or on behalf of others, solicit or contact or attempt to solicit or contact (by mail, email, courier, facsimile, telephone, instant or text message, social media, or otherwise), or meet
          with (in person, via video conference, or otherwise), any customer of Company or Bank or any Affiliate of Company or Bank, or any prospective customer of Company or Bank or any Affiliate of Company or Bank known by Executive to be sought by
          Company or Bank or any Affiliate of Company or Bank, for purposes of selling, offering, or providing products or services that are competitive with those sold, offered, or provided by Company or Bank or any Affiliate of Company or Bank.

       

      (c)          Non-Solicitation of Employees.  Executive
          agrees that, during the Term and, following the termination of Executive’s employment with Employer, for the duration of the Post-Termination Period, Executive will not directly or indirectly (except on behalf of or with the prior written consent
          of Employer), on Executive’s own behalf or in the service of or on behalf of others, solicit, recruit, or hire, or attempt to solicit, recruit, or hire, any employee of Company or Bank or any Affiliate of Company or Bank, or otherwise induce or
          attempt to induce any such employee to terminate his or her employment with Company or Bank or any Affiliate of Company or Bank, regardless of whether the employee is a full-time, part-time, or temporary employee of Company or Bank or an
          Affiliate of Company or Bank or the employee’s employment is pursuant to a written agreement, for a determined period, or at will.

       

      (d)          Non-Disparagement.  Executive agrees that,
          both during the Term and following the termination of Executive’s employment with Employer, Executive will not make any disparaging statements or remarks (written or oral) about Company or Bank or any Affiliate of Company or Bank or any of their
          respective officers, directors, employees, shareholders, agents, or representatives. Employer agrees that, in connection with the termination of Executive’s employment, Employer will instruct the directors and executive officers of Employer as of
          the date of termination of Executive’s employment to refrain from making any disparaging statements or remarks (written or oral) about Executive.

       

      (e)          Modification; No Hardship.  The Parties agree
          that the provisions of this Agreement represent a reasonable balancing of their respective interests and have attempted to limit the restrictions imposed on Executive to those necessary to protect Employer from inevitable disclosure of
          Confidential Information and unfair competition. The Parties agree that, if the scope or enforceability of this Agreement, or any provision hereof, is in any way disputed at any time and a court or other trier of fact determines that the scope of
          any provision contained in this Agreement is overbroad, then such court or other trier of fact may modify the scope of such provision so that it is enforceable to greatest extent permitted by applicable law. Executive

            acknowledges and agrees that, in the event Executive’s employment with Employer terminates, Executive possesses marketable skills and abilities that will enable Executive to find suitable employment without violating the covenants set forth in
            this Agreement.

       

      (f)          Tolling.  Executive agrees that, in the event
          Executive breaches this Section 8, the Post-Termination Period shall be tolled during, and therefore extended by, the period of such breach.

       

      (g)          Remedies.  Executive agrees that the
          covenants contained in Section 7 and Section 8 are of the essence of this Agreement; that each of such covenants is reasonable and necessary to protect the business, interests, and properties of Company and Bank and their
          respective Affiliates; and that irreparable loss and damage will be suffered by Employer and its Affiliates should Executive breach any of such covenants. Therefore, Executive agrees and consents that, in addition to all other remedies provided
          by or available at law or in equity, Employer shall be entitled to seek a temporary restraining order and temporary and permanent injunctions to prevent a breach or contemplated or threatened breach of any of the covenants contained in Section

            7 or Section 8 and that, in such event, Employer shall not be required to post a bond. Employer and Executive agree that all remedies available to Employer shall be cumulative.

       

      
        13

        
          

      

      9.           Severability.  The Parties agree that each of the provisions included in this Agreement is separate, distinct, and severable from the other provisions of
        this Agreement and that the invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. Further, if any provision of this Agreement is ruled invalid or
        unenforceable by a court of competent jurisdiction because of a conflict between the provision and any applicable law, rule, regulation, or public policy, the provision shall be redrawn to make the provision consistent with, and valid and
        enforceable under, such law, rule, regulation, or public policy.

       

      10.         No Set-Off by Executive.  The existence of any claim, demand, action, or cause of action by Executive against Company or Bank or any Affiliate of Company or
        Bank, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of any of its rights under this Agreement.

       

      11.         Notices.  All notices and other communications required or permitted under or pertaining to this Agreement shall be in writing and shall be
          either personally delivered, sent by overnight courier, or mailed by first class United States Mail, return receipt requested, to the recipient at the address below indicated:

       

      
        	
                If to Employer:

              	
                If to Executive:

              
	 	 
	
                Reliant Bancorp, Inc.

              	
                To Executive, personally, at the address for

              
	
                6100 Tower Circle, Suite 120

              	
                Executive appearing in the records of Employer

              
	
                Franklin, Tennessee 37067

              	 
	
                Attention: Lead Independent Director

              	 

      

      

      

      or to such other address or to the attention of such other person as the recipient Party shall have specified by prior written notice to the sending Party. All such notices and other
        communications shall be effective (a) when personally delivered to the Party to be notified, (b) two business days after deposit with an overnight courier, addressed to the Party to be notified as set forth above, or (c) four business days after
        deposit in the United States Mail, first class, return receipt requested, at any time other than during a general discontinuance of postal service due to strike, lockout, or otherwise (in the event of a general discontinuance of postal service,
        notices and other communications will be effective upon receipt), and addressed to the Party to be notified as set forth above.

      

      

      12.         Assignment.  Each of Company and Bank may assign this Agreement and its rights hereunder, and may delegate its duties and obligations under this Agreement,
        in each case without notice to or the consent of Executive, in connection with a Change in Control. This Agreement is a personal contract, and neither this Agreement nor the rights, interest, duties, or obligations of Executive hereunder may be
        assigned or delegated by Executive. Subject to the preceding provisions of this Section 12, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns.

       

      13.         Waiver.  A waiver by a Party of any provision of this Agreement or of any breach of this Agreement by any other Party shall not be effective unless set
        forth in a written instrument signed by the Party granting such waiver, and no such waiver shall operate or be construed as a waiver of the same or any other provision or breach on any other occasion.

       

      14.         Mediation.  Except with respect to Section 7 and Section 8, in the event of any dispute arising out of or relating to this Agreement or a breach hereof,
        which dispute cannot be settled through direct discussions among the Parties, the Parties agree to first endeavor to settle the dispute in an amicable manner by non-binding, confidential mediation in Franklin, Williamson County, Tennessee before
        resorting to any other process for resolving the dispute.

       

      
        14

        
          

      

      15.         Applicable Law and Choice of Forum.  This Agreement shall be governed by and construed and enforced under and in accordance with the laws of the State of
        Tennessee, without regard to or the application of principles of conflicts of laws. The Parties agree that any litigation, suit, action, or proceeding arising out of or related to this Agreement shall be instituted exclusively in the United States
        District Court for the Middle District of Tennessee, Nashville Division, or the courts of the State of Tennessee sitting in Williamson County, Tennessee, and each Party irrevocably submits to the exclusive jurisdiction of and venue in such courts
        and waives any objection it might otherwise have to the jurisdiction of or venue in such courts.

       

      16.         Interpretation.  Words used herein denoting one gender shall include all genders. Words used herein denoting the singular shall include the plural and vice
        versa. When used herein, the terms “herein,” “hereunder,” “hereby,” “hereto,” and “hereof,” and any similar terms, refer to this Agreement. When used herein, the term “person” shall include an individual, a corporation, a limited liability company,
        a partnership, a joint venture, an association, a trust, and any other entity or organization, whether or not incorporated. Any captions, titles, or headings preceding the text of any section or subsection of this Agreement are solely for
        convenience of reference and shall not constitute part of this Agreement or affect its meaning, construction, or effect. The Parties agree that, because they have been given the opportunity to have counsel review and revise this Agreement, the
        normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. Instead, the language of all parts of this Agreement shall be construed as a
        whole, and according to its fair meaning, and not strictly for or against any of the Parties.

       

      17.         Entire Agreement; No Duplication of Benefits.

       

      (a)          This Agreement embodies the entire and final, integrated agreement of the Parties on
          the subject matter stated in this Agreement and supersedes all prior understandings and agreements (oral and written) of the Parties relating to the subject matter of this Agreement. Without limiting the foregoing, the Parties agree that the
          Prior Employment Agreement is terminated and superseded by this Agreement as of the Effective Date and that, as of and after the Effective Date, (i) the Prior Employment Agreement shall have no further force or effect whatsoever and (ii)
          notwithstanding any provision of the Prior Employment Agreement to the contrary (including without limitation Section 21 (Survival) of the Prior Employment Agreement), neither Employer nor Executive shall have any further or continuing rights,
          duties, obligations, or liability of any kind or nature under the Prior Employment Agreement. Notwithstanding the foregoing, this Section 17(a) shall not relieve or release a Party from any liability or damages arising from a breach by
          such Party of the Prior Employment Agreement prior to the date hereof.

       

      (b)          No amendment or supplement to or modification of this Agreement shall be valid or
          binding upon any Party unless the same is set forth in a written instrument signed by all Parties.

       

      (c)          The severance payments and benefits provided for in this Agreement shall be in lieu of
          any payments or benefits pursuant any general severance policy or other severance plan maintained by Employer for the benefit of its employees generally.

       

      18.         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 agreement. A signed copy of this Agreement delivered by facsimile, email, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original manually signed copy of this Agreement.

       

      
        15

        
          

      

      19.         Rights of Third Parties.  Nothing herein expressed is intended, or shall be construed, to confer upon or give to any person, other than the Parties hereto
        and, as applicable, their respective estates, heirs, beneficiaries, successors, and permitted assigns, any rights or remedies under or by reason of this Agreement.

       

      20.         Legal Fees.  In the event of any claim, action, suit, or proceeding arising out of or relating to this Agreement, the prevailing Party or Parties shall be
        entitled to recover from the non-prevailing Party or Parties all reasonable fees, expenses, and disbursements, including without limitation reasonable attorneys’ fees and court costs, incurred by such prevailing Party or Parties in connection with
        such claim, action, suit, or proceeding, in addition to any other relief to which such prevailing Party or Parties may be entitled at law or in equity.

       

      21.         Survival.  The respective rights and obligations of the Parties hereunder shall survive the termination of this Agreement to the extent and for such time as
        necessary to carry out fully the purposes and intent of this Agreement.

       

      22.         Executive Representations. Executive represents
          and warrants to Employer that, during the Term, neither Executive’s employment with Employer nor Executive’s performance of Executive’s duties and responsibilities under this Agreement will conflict with or result in a
          breach or violation of or a default under any contract, covenant, or agreement (including without limitation any non-solicitation, non-competition, or other similar contract, covenant, or agreement) or order, judgment, or decree to which
          Executive is a party or subject or by which Executive is bound. Executive acknowledges and affirms that Executive has executed this Agreement voluntarily, has read this Agreement carefully, and
            had a full and reasonable opportunity to consider this Agreement (including an opportunity to consult with legal counsel), and that Executive has not been pressured or in any way coerced, threatened, or intimidated into signing this Agreement.

       

      23.         Code Section 409A.  Notwithstanding anything in this Agreement to the contrary, the following provisions shall apply to all benefits and payments provided
        under this Agreement by Employer to Executive:

       

      (a)          The payment (or commencement of a series of payments) hereunder of any non-qualified
          deferred compensation (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as Executive has also undergone a Separation from Service, at which time such non-qualified deferred
          compensation (calculated as of the date of Executive’s termination of employment) shall be paid (or commence to be paid) to Executive as set forth in this Agreement as if Executive had undergone such termination of employment (under the same
          circumstances) on the date of Executive’s Separation from Service.

       

      (b)          If Executive is a specified employee (as determined by Employer in accordance with
          Section 409A of the Code and Treasury Regulations § 1.409A-3(i)(2)) as of Executive’s Separation from Service with Employer, and if any payment, benefit, or entitlement provided for in this Agreement or otherwise both (i) constitutes
          non-qualified deferred compensation (within the meaning of Section 409A of the Code) and (ii) cannot be paid or provided in a manner otherwise expressly provided for without subjecting Executive to additional tax or interest (or both) under
          Section 409A of the Code, then any such payment, benefit, or entitlement that is payable during the first six months following the Separation from Service shall be paid or provided to Executive in a lump sum cash payment to be made on the earlier
          of (A) Executive’s death and (B) the first business day of the seventh month immediately following Executive’s Separation from Service.

       

      
        16

        
          

      

      (c)          Any payment or benefit paid or provided under this Agreement due to a Separation from
          Service that is exempt from Section 409A of the Code pursuant to Treasury Regulations § 1.409A-1(b)(9)(v) will be paid or provided to Executive only to the extent that expenses are not incurred or benefits are not provided beyond the last day of
          Executive’s second taxable year following Executive’s taxable year in which the Separation from Service occurs, provided that Employer reimburses such expenses no later than the last day of the third
          taxable year following Executive’s taxable year in which Executive’s Separation from Service occurs.

       

      (d)          It is the intent of the Parties that the payments, benefits, and entitlements to which
          Executive could become entitled in connection with Executive’s employment under this Agreement be exempt from or comply with Section 409A of the Code and the regulations and other guidance promulgated thereunder, and, accordingly, this Agreement
          will be interpreted to be consistent with such intent. For purposes of the limitations on non-qualified deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate payment
          of compensation for purposes of applying the exclusion under Section 409A of the Code for short-term deferral amounts, the separation pay exception, or any other exception or exclusion under Section 409A of the Code.

       

      (e)          Although the payments and benefits provided for hereunder are intended to be
          structured in a manner to avoid the imposition of any penalty taxes under Section 409A of the Code, in no event whatsoever will Employer be liable for any additional tax, interest, or penalties that may be imposed on Executive under or as a
          result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding or other obligations applicable to employers, if any, under Section 409A of the Code).

       

      (f)          No deferred compensation payments provided for under this Agreement shall be
          accelerated to Executive, except as permitted by Treasury Regulations § 1.409A-3(j)(4).

       

      (g)          Notwithstanding any other provision of this Agreement
          to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Section 409A of the Code be subject to offset by any other amount unless permitted by Section 409A of the Code.

       

      24.         Code Section 280G.

       

      (a)          In the event that it is determined that any payment or benefit to be made or provided
          to or for the benefit of Executive, whether pursuant to this Agreement or otherwise (all such payments and benefits, “Covered Payments”), would constitute a “parachute payment” within
          the meaning of Section 280G of the Code (or any successor provision thereto) and would, but for this Section 24(a), be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto) (the “Excise Tax”), then prior to any Covered Payments being made or provided a calculation shall be made comparing (i) the Net Benefit (as defined below) to Executive of the Covered Payments
          after payment of the Excise Tax to (ii) the Net Benefit to Executive if the Covered Payments are reduced to the minimum extent necessary to avoid the Covered Payments being subject to the Excise Tax. Only if the amount calculated under clause (i)
          above is less than the amount calculated under clause (ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax. The term “Net Benefit” shall mean the present value of the Covered Payments net of all federal, state, local, foreign income, employment, and excise taxes. Any reduction of Covered Payments pursuant
          to this Section 24(a) will be made in a manner determined by Employer that is consistent with the requirements of Section 409A of the Code.

       

      
        17

        
          

      

      (b)          All determinations and calculations under this Section 24 shall be made by an
          independent regional or national accounting firm or independent tax counsel selected by Employer (the “Determination Firm”). All determinations and calculations of the Determination Firm
          shall be conclusive and binding on the Parties for all purposes. For purposes of making the determinations and calculations required by this Section 24, the Determination Firm may rely on reasonable, good faith assumptions and
          approximations concerning the application of Section 280G and Section 4999 of the Code. The Parties shall furnish the Determination Firm with such documents and information as the Determination Firm may reasonably request in order to make any
          determinations and calculations necessitated by this Section 24. The fees and expenses of the Determination Firm shall be borne by Employer.

       

      25.         Tax Withholding.  Employer may deduct and withhold from any amounts payable
          under this Agreement all federal, state, local, or other taxes Employer is required to deduct or withhold pursuant to applicable law, rule, regulation, or ruling.

       

      26.         Regulatory Restrictions. The Parties expressly acknowledge and agree that their
          rights and obligations under this Agreement will be subject to such conditions, restrictions, and limitations as may from time to time be imposed by applicable federal or state banking laws, rules, or regulations or the policies of federal or
          state bank or bank holding company regulatory agencies. Without limiting the foregoing, no payment shall be made to Executive, pursuant to this Agreement or otherwise, if such payment would be in contravention of the requirements of Section 18(k)
          of the Federal Deposit Insurance Act (12 U.S.C. § 1828(k)) or Part 359 of the FDIC’s Rules and Regulations (12 C.F.R. Part 359), and Employer shall have no obligation to petition the FDIC, or any other regulatory agency or authority, for its
          consent or concurrence for any payment to Executive under Section 18(k) of the Federal Deposit Insurance Act or Part 359 of the FDIC’s Rules and Regulations.

       

      27.         Right to Contact.  Executive agrees that Employer shall have the right to
          contact any new employer, or potential employer, of Executive and apprise such person of Executive’s responsibilities and obligations owed under this Agreement.

       

      

      

      (Signature Page Follows)

       

      

      
        18

        
          

      

      IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement effective as of the date first written above.

       

      	
              COMPANY:

            	
              RELIANT BANCORP, INC.

            
	 	 	 
	 	
              By:

            	
              /s/ John R. Wilson

            
	 	 	
              John R. Wilson

            
	 	 	
              President

            
	 	 	 
	
              BANK:

            	
              RELIANT BANK

            
	 	 	 
	 	
              By:

            	
              /s/ John R. Wilson

            
	 	 	
              John R. Wilson

            
	 	 	
              President

            
	 	 	 
	
              EXECUTIVE:

            	 	 
	 	 	 
	 	
              /s/ DeVan Ard, Jr.

            
	 	
              DeVan Ard, Jr.

            

      

      

      (Signature Page to Ard Employment Agreement)

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