Document:

Fresenius Exhibit

Confidential portions of this Exhibit, denoted by bracketed asterisks, have been omitted and filed separately with the Securities and Exchange Commission in reliance on Rule 24b-2 of the Securities Exchange Act of 1934.

NxStage Medical, Inc.
Chronic Outpatient Therapy Agreement
(As amended through January 10, 2014)

Date of Agreement:    November 24, 2009
Customer Name:    Fresenius USA Marketing, Inc. (“Customer”)
Street Address of Customer:    920 Winter Street
City, State, Zip of Customer:    Waltham, MA 02451
Customer Contact and Phone No.:    Jim Loendorf
Senior Director, Materials Management
(1-781-699-4514)
NxStage Customer Service Phone No.:    1-866-NxStage (1-866-697-8243)
Contract No.:    To be assigned
Contract Term:    From November 24, 2009 (the “Effective Date”) through December 31, 2016 (the “Initial Term”), which term shall be automatically extended on a month-to-month basis until one of the parties provides thirty (30) days prior written notice of termination. 

Attached Schedules:    Schedule A:    General Terms and Conditions
Schedule B-1:    Monthly Dialysis Supplies
Schedule B-2:    Replacement/Ancillary Supplies
Schedule B-3:    Delivery Services
Schedule C:    Warranty/Service
Schedule D:    Authorized Customer Locations (Schedule listing the Customer locations authorized to order under, and covered by, this Agreement.)  Such locations may include (i) Customer’s dialysis clinics, (ii) independent dialysis clinics (including those affiliated with [**]) that have entered into management contracts with Customer covering the purchase of products, including the System One, and (iii) dialysis clinics held by Customer in a joint venture structure.
                            

ALL TERMS (INCLUDING THOSE CONTAINED IN THE SCHEDULES ATTACHED HERETO) ARE ACCEPTED AND AGREED TO ON BEHALF OF:

FRESENIUS USA MARKETING, INC.            NXSTAGE MEDICAL, INC.

By:  /s/ Rice Powell___________                By:  /s/ Jeffrey H. Burbank___________
(authorized signature)                        (authorized signature)
Rice Powell_______________________                Jeffrey H. Burbank_________________    
(printed name)                                  (printed name)
Co-CEO FMCNA__________________                CEO_____________________________ (title)                                     (title)
24 Nov ‘09________________________            24 November 2009_________________
(date)                                (date)

Schedule A
Chronic Outpatient Therapy Agreement
General Terms and Conditions

The following general terms and conditions apply to the purchase of the NxStage System One (“System”), consisting of either a Cycler, Warmer and Stand, or a Cycler and PureFlow SL (Cabinet and Control Unit), as the case may be, System cartridges and fluids (“Supplies”), and related products and services for use in chronic outpatient therapy (“Related Products”).  The System, Supplies and Related Products sold hereunder are referred to collectively as “Products”.

1.  PURCHASES
The purchase of Supplies and Related Products must be initiated by purchase orders or NxStage System Patient Orders (“Patient Orders”; form available upon request), signed by the prescribing physician for the named patients who will receive chronic therapy.  All System orders must be initiated by purchase orders.  If the terms and provisions of the purchase order or Patient Order conflict with or are in addition to the terms of this Agreement, the terms of this Agreement shall control.

2.  PRODUCTS AND PRICING

A.    Pricing for Monthly Dialysis Supplies is outlined in Schedule B-1.  Pricing for the purchase of System equipment and ancillary/replacement supplies is outlined in Schedule B-2.  Pricing for delivery services is outlined in Schedule B-3.  The prices on Schedules B-1 and B-2 are fixed through [**] and are thereafter subject to [**] as described in paragraph B below.  The pricing for the delivery services in Schedule B-3 may be amended at any time at NxStage’s discretion with [**] days advanced written notice to Customer.

B.    Starting [**], NxStage shall have the right to [**] the prices for each Product (as identified on Schedules B-1 and B-2) if Customer’s Active NxStage Chronic Patient Census (as defined in paragraph C below) is less than [**] as measured [**].  For the sake of clarity, if Customer’s Active NxStage Chronic Patient Census is equal to or greater than [**] as measured [**], then NxStage shall not have the right to [**].

C.    For purposes hereof, the term “Active NxStage Home Patient Census” is defined to mean the Authorized Customer Locations’ aggregate number of [**] then prescribed to receive, and receiving, dialysis with the NxStage System One.  The Active NxStage Home Patient Census shall not include patients prescribed to receive therapy with the NxStage System One (i) in a nursing home or an in-center self-care setting or (ii) in connection with an evaluation of more frequent therapy, home therapy or the System One (such as under NxStage’s “Experience the Difference” program).  In addition, the Active NxStage Home Patient Census shall not include (a) [**] acquired by Customer or any Authorized Customer Location on or after the Second Amendment Effective Date (1) through the purchase of facilities which have, or did have, any type of program with NxStage with respect to the purchase, sale or rental of the System One for home use during the [**] prior to the closing date of the acquisition (each, an “Acquired Site), or (2) under any management contract, joint venture or other similar transaction entered into subsequent to the Second Amendment Effective Date with any facility which has, or did have, any type of program with NxStage with respect to the purchase, sale or rental of the System One during the [**] prior to the effective date of any such management contract, joint venture or similar transaction (each, a “Management Contract Site”) and (b) any patients added to an Acquired Site or Management Contract Site after the closing date of the acquisition or the effective date of the management contract, joint venture or other similar transaction, respectively.  For the sake of clarity, both existing and new patients in Authorized Customer Locations existing as of the Second Amendment Effective Date that become joint venture locations after January 1, 2014 shall continue to be included in the Active NxStage Home Patient Census.

D.    NxStage will on occasion supply Products sourced from other suppliers pursuant hereto.  NxStage reserves the right to supply its own Products, once the same are commercially available, or to change the supplier of these Products from time to time.  NxStage expects to, but has no obligation to, make additional products available for purchase by Customer from time to time.  NxStage, therefore, reserves the right to amend the Schedules hereto to include additional product offerings with advanced customer notification.  

E.    The Products and services listed in Schedules B-1 through B-3 are subject to discontinuation in NxStage’s sole discretion or due to Force Majeure events.
    
3.  LIMITATIONS ON SALE AND USE
All Products are to be used by the Customer in the continental United States at Authorized Customer Locations (as listed in Schedule D) and are not to be transferred, remarketed or resold.  Notwithstanding the foregoing, Customer may (i) transfer Products to a third party in connection with the sale of an outpatient dialysis clinic by Customer which includes Products then in use by such clinic’s patients in the assets that are sold, and (ii) transfer, resell, and, in the case of Systems, rent Products to Authorized Customer Locations that are (a) independent dialysis clinics that have entered into management contracts with Customer covering the purchase of products, including the System One, and (b) dialysis clinics held by Customer in a joint venture structure, subject, in the case of subpart (i) and (ii) hereof, to NxStage’s prior written consent, which shall not be unreasonably withheld.  Products are to be used only for chronic patient therapy for treatment of named patients or for training.

[**] completed Patient Orders and a purchase order for [**] Systems are required for a new site/facility startup.  Additionally, the parties must agree to amend this Agreement, according to the procedures set forth in Section 23, to add a new site/facility as an Authorized Customer Location (as defined in Schedule D hereto).  Customer agrees that simultaneous with the execution of this Agreement, Customer shall purchase, at the pricing set forth in Schedule B-2, all Systems that have been provided to [**] clinics, and that all Product purchases for such clinics shall be made pursuant to this Agreement from and after the Effective Date.

4.  SHIPPING
Shipping is [**]. Monthly Dialysis Supplies (as that term is used in Schedule B) shipment quantities will be based on the prescribed frequency (as indicated in the Patient Order) and inventory needs of the patient, as reported by the patient to NxStage Customer Service. All prices for Monthly Dialysis Supplies (provided such Supplies are part of either (i) a patient’s standard delivery quantities pursuant to Patient Orders, or (ii) a patient’s travel delivery consistent with the terms hereof and as documented on a NxStage System One Vacation and Travel Form (copies of which are available on request)), include shipping costs to Customer’s patients’ homes or designated travel destination in each case in the 48 continental states via common carrier of NxStage selection unless otherwise stated, and include one patient delivery each [**] weeks, based on NxStage’s then-standard delivery policies for that geographical area.  For all other deliveries, shipping costs will be prepaid by NxStage and added to the Customer’s invoice.  NxStage shall use reasonable diligence to ensure that Products are shipped according to Customer’s delivery requirements.  Any extra charges for special services are prepaid by NxStage and added to the Customer’s invoice.  The schedule of special services is outlined in Schedule B-3.  

If an expedited shipment (requiring delivery in less than [**] business days) must be made at Customer’s request, Customer agrees to pay for all incremental Product-shipping charges in excess of what standard shipping costs would be for unexpedited shipment.  Without limiting the foregoing, Customer agrees that its patients are expected to accurately report their levels of Supplies inventory to NxStage Customer Service on a monthly basis.  If patients fail to do this, and require expedited shipments of Supplies to perform dialysis therapy at their prescribed frequencies, Customer agrees to pay for all incremental Product-shipping charges in excess of what standard shipping costs would be for unexpedited shipment.  NxStage reserves the right to charge Customer (or to increase Monthly Dialysis Supplies pricing) for Supplies consumption above the applicable prescribed frequency, as measured on a calendar monthly basis, or if usage is above standard usage levels.

Customer must notify NxStage Customer Service in writing of any irregularity in a Product shipment within the later of [**] business days of receipt of the shipment or [**] business days discovery of a concealed defect in such shipment.  All evidence of shipping damage or over- or under- shipment should be noted on the carrier’s freight bill and the carrier should countersign the document.  In the absence of timely written notice, acceptance will be conclusively presumed.  NxStage shall use reasonable efforts to replace goods damaged in transit and to remedy Product delivery shortages within [**] business days of receiving notice thereof from Customer.

5.  VACATION/TRAVEL SUPPLIES (Including Premixed Bags for PFSL Patients) 
Monthly Dialysis Supplies prices are extended to Customer’s traveling patients when traveling within the 48 continental states as long as NxStage is given at least [**] business days’ notice of the change in delivery site, NxStage receives a prescription using the NxStage System One Vacation and Travel Form from the patient’s physician requesting travel delivery at least [**] business days in advance of the requested change in delivery site, and NxStage is not required to alter standard case shipping volumes to satisfy special travel/vacation delivery requirements.  This benefit may be used for no more than [**] trips per patient; for a maximum of [**] weeks per patient in total annually. Requests for travel/vacation delivery in excess of [**] trips or [**] weeks annually, to locations outside of the 48 continental states, in non-standard shipping volumes, or which are made with insufficient notice, shall be subject to approval from NxStage and may be subject to additional charges. NxStage shall act in good faith to make additional travel/vacation deliveries to Customer’s patients at no additional charges, and shall give due consideration to vacation time unused by Customer’s other patients.  Customer’s patients’ Monthly Dialysis Supplies shipments shall be adjusted to account for all travel Supplies delivered.  NxStage will not arrange for delivery of Systems.  Customer is responsible for transporting Systems according to the shipping directions provided by NxStage in the device Operator’s Manuals and other supplements as required, and Customer shall be responsible for any damages to Systems as a result of any improper shipping by Customer or its patients.  

Moreover, an allotment of PureFlow Express Premixed Dialysate bags will be made available to Customer for distribution to its NxStage PureFlow SL patients [**] to allow for vacation, travel, and other usage.  Allotments shall be made on an Authorized Customer Location basis. The initial allotment balance per Authorized Customer Location (“Balance”) shall be equal to [**] cases of PureFlow Express Premixed Dialysate multiplied by [**] such location’s patients prescribed to receive PureFlow SL Monthly Dialysis Supplies as of the Effective Date.  Thereafter, the Balance shall be recalculated at the end of each calendar month per Authorized Customer Location according to the following formula:

		
	•
	Add: [**] cases of Premixed Dialysate multiplied by [**] such location’s patients then prescribed to receive and receiving PureFlow SL Monthly Dialysis Supplies at home at the start of that calendar month

		
	•
	Add: [**] cases of Premixed Dialysate multiplied by [**] such location’s [**] PureFlow SL [**] at home during that [**] (adjusted, as appropriate, for [**]) 

		
	•
	Subtract: Actual shipments during that calendar month of Premixed Dialysate, in cases, to such location’s patients then prescribed to receive and receiving PureFlow SL Monthly Dialysis Supplies, not including cases purchased as part of an initial reserve inventory shipment and as adjusted in good faith by NxStage to exclude cases shipped to support reported PureFlow SL reliability events.  

If the calculated Balance is negative, NxStage shall bill Customer for such negative Balance at pricing listed in Schedule B and the Balance will be [**] to start the subsequent calendar month.  Any positive Balance shall be carried to the subsequent calendar month, provided such positive Balance, in cases, will never exceed the number of such Location’s patients then prescribed to receive and receiving PureFlow SL Monthly Dialysis Supplies at the end of that month multiplied by [**].  Balance information shall be provided to Customer upon Customer’s request.  

6.  PAYMENT 
Upon successful credit review by NxStage, terms will be [**].  Payments made more than [**] days after the stated term will be subject to a past due service charge of [**] per month (or the highest rate permitted by applicable law, whichever is less), except for any portion of an invoice disputed by Customer in good faith.  Any invoice dispute must be made by Customer in good faith.  Customer must notify NxStage of any invoice disputes in writing within [**] days of its receipt of an invoice, and the parties shall take all commercially reasonable efforts to resolve any billing disputes within [**] days.

If Customer fails to pay its undisputed balance within [**] days of the date of the invoice, NxStage may, at its option, upon [**] days written notice and Customer’s failure to cure within such [**] days, terminate this Agreement and any other agreements between NxStage and Customer or modify their payment terms.

7.  DISCOUNTS AND REBATES
Discounts and rebates earned under this Agreement are “Discounts or Other Reductions in Price” to Customer under 42 U.S.C. §1320a-7b(b)(3)(A) of the Social Security Act, and must be properly reported on applicable Medicare and Medicaid cost reports.  Customer should retain a copy of this Agreement and all related notices and communications from NxStage, together with invoices hereunder (which will indicate that a discount or end of period rebate may apply) and permit agents of the U.S. Department of Health and Human Services or any state Medicaid agency access to such records upon request.

In order to assist Customer’s compliance with such obligations, NxStage shall fully and accurately report all discounts on the invoices or statements submitted to Customer, or where the value of a discount is not known at the time of sale, NxStage shall fully and accurately report the existence of the discount program on the invoices or statements submitted to Customer and when the value of the discount becomes known, provide Customer with documentation of the calculation of the discount identifying the specific Products to which the discount will be applied.  At Customer’s request, NxStage shall also provide Customer with any other information necessary for Customer to comply with such obligations.

8.  TAXES
Quoted prices do not include sales, use, excise or similar taxes.  Customer agrees to pay promptly any and all applicable taxes, assessments, or other charges levied or assessed on or with respect to the acquisition, possession, or use of any Products, and shall reimburse NxStage if NxStage has paid such taxes, excluding, however, any taxes on or measured by NxStage’s net income. 

9.   BILLING, THERAPY DISCONTINUATION, AND HOSPITALIZATION CREDITS
Monthly Dialysis Supplies are billed on a monthly basis, by calendar month at the beginning of the calendar month.  Each patient shall be designated by prescription as either a PureFlow SL patient or an Express patient.  Supplies outside of the Monthly Dialysis Supplies for PFSL patients (e.g., PureFlow Express premixed dialysate, except for the provisions of Section 5) and for Express patients (e.g., PFSL supplies) shall be billed independently according to pricing in Schedule B-2.

For Supplies under the Monthly Dialysis Supplies, billing will commence when patient initiates therapy (as noted on the Patient Order), and will continue until written notification of discontinuation of therapy is received (using the NxStage Patient/Customer Status Form, available upon request).  The monthly billing amount will be adjusted only (i) during the first month of therapy (to account for the portion of the month prior to a patient’s therapy start date), or (ii) in the event of documented hospitalization leading to missed NxStage therapy treatments.
 
Except as provided below, in the case of documented hospitalizations, no credit shall be given for missed treatments, for any reason, including patient noncompliance.  In the event of a documented hospitalization, [**].  Documentation of hospitalizations must be provided (using the NxStage Patient/Customer Status Form) to NxStage within [**] days of the date of discharge in order to be eligible for such a pro-rated credit. Monthly Dialysis Supplies shipments will be adjusted appropriately to account for missed days of therapy for any reason, and Customer’s patients are expected to accurately report their inventory of Supplies to avoid over-deliveries or product shortages.

It is the Customer’s responsibility to retrieve and/or dispose of all unused Supplies at patient discontinuation.  No credit will be issued for any Monthly Dialysis Supplies retrieved by Customer that have not been invoiced.  Supplies retrieved that have not yet been invoiced must either be returned to NxStage, at NxStage’s expense or used by Customer.  Once such supplies are assigned for use, NxStage shall invoice Customer for such supplies, and adjust subsequent deliveries.  If retrieved supplies were invoiced, NxStage will apply, at Customer’s request, a credit against future Monthly Dialysis Supplies orders, as set forth in Patient Orders, if the retrieved Supplies are used for a future patient, are unexpired, and are consistent with the future patient’s prescription.  The amount of the credit applied shall be based upon the number of treatments that can be fully performed with such retrieved Supplies.  Customer may request that NxStage retrieve the System and Supplies and return them to the center at the charges outlined in Schedule B. 

[**].
 
10.  MAINTENANCE AND UPGRADES
At its option, NxStage may conduct routine maintenance on the System(s) and any other equipment shipped to Customer under this Agreement.  Customer shall provide NxStage with reasonable access to these devices during Customer’s normal business hours, Monday through Friday (not including holidays), to conduct such maintenance, at NxStage’s request upon reasonable prior notice.  As part of an ongoing maintenance program, NxStage may elect to install reasonable Product upgrades, at no cost to Customer.  NxStage does not, however, guarantee that any upgrades will be installed on Products shipped to Customer under this Agreement.

11.  WARRANTY/SERVICE
NxStage warrants the Systems, Supplies and Related Products according to the terms outlined in Schedule C.  THESE WARRANTIES CONTAIN CUSTOMER’S SOLE REMEDIES AND ARE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.

12.  RISK OF LOSS (only for items to which NxStage retains title)
Customer is entirely responsible for any loss of or damage to any property or equipment provided to Customer hereunder and to which NxStage retains title from whatever causes, except for normal wear and tear and defects in materials and workmanship (an “uncovered loss”).  If NxStage determines that any such property or equipment which has an uncovered loss is repairable, Customer will pay NxStage’s cost of repair or replacement and NxStage will either repair the damaged device or replace it with another device in good working order, which may or may not be new.  If NxStage determines that a device, which has an uncovered loss, is not repairable, Customer will pay NxStage the [**] for that device [**] by NxStage, return the device to NxStage, and NxStage will provide a replacement device in good working order.  If a device is lost, discarded or stolen, Customer shall pay NxStage the [**] for that device and NxStage shall have the discretion to either terminate this Agreement, or to provide Customer with a replacement device. With the exception of the Cycler Log Files, and any related computer, or in the context of a service swap, NxStage agrees that it shall not ship items to Customer to which NxStage will retain title without Customer’s prior written consent, which shall not be unreasonably withheld.

13.  CUSTOMER SERVICE 
NxStage Customer Service is available during NxStage’s normal business hours, Monday through Friday (not including holidays), to support its customers’ product ordering needs.  NxStage provides 24/7 technical support for its customers’ System servicing needs.  Clinical and technical questions raised by Customer’s users with NxStage Customer Service will be referred, if possible, to Customer’s facility, to ensure consistency in patient care and adherence with Customer’s policies and procedures. 

14. TRAINING
At initiation of a new Authorized Customer Location, Customer agrees to use reasonable commercial efforts to select at least [**], and preferably [**], staff [**] to serve as Customer’s expert user of the Products and trainer of subsequent staff, and shall use reasonable commercial efforts to schedule appointed staff and at least [**] to be available for treatment during the Authorized Customer Location’s start-up week.  Provided the above, NxStage agrees to provide [**] days of on-site in-servicing and support training at each center start-up, and a [**] “Training Package” of [**] cartridges for each center start-up for non-clinical use solely in connection with training.  At its option, Customer may purchase additional on-site NxStage clinical educator days for $[**]/day, plus reasonable travel and lodging expenses, with a valid purchase order.

15. ACCESS TO SYSTEM DATA 
The System may have an internal computer that records all Systems operations, such as alarms and Cycler control panel touches (“Cycler log files”).  Customer agrees that, even with purchased Systems, the Cycler log files and the computer containing them, are the property of NxStage, agrees not to tamper with or destroy Cycler log files or the computer, and to make available such log files and computer to NxStage at reasonable times within [**] hours of NxStage’s request.  NxStage shall keep this information confidential and shall use it for continued product improvement and service.  For so long as Systems are in use by Customer for chronic outpatient therapy, NxStage hereby grants 

Customer an irrevocable license to access and use the treatment specific data (e.g., flow rates, treatment times, alarms) contained in all Cycler Log Files created in connection with Customer’s patient treatments using Systems purchased by Customer; provided that NxStage shall have no obligation to summarize such data or otherwise manipulate such data on Customer’s behalf; and provided further that NxStage shall have no obligation to service the computer generating such Cycler Log Files beyond [**] years after the original System purchase date.  Customer understands that such data is not automatically transmitted from Cyclers to NxStage and that Customer is responsible for ensuring the transmittal of such data to NxStage.  Customer further understands that NxStage can not guarantee the completeness of such data, as the same may be impacted by power outages, improper connections between the Cycler and the computer that records the Cycler Log Files, or other disruptions in Cycler or computer operations.  Customer acknowledges and agrees that it has no expectation that the Cycler Log File information will be analyzed by NxStage.

Customer understands that Cycler Log Files do not presently capture patient clinical data (defined to mean patient physiologic parameters such as blood pressures, hear rates, URRs, and Kt/Vs) (“Patient Clinical Data”).  NxStage agrees that all of Customer’s Patient Clinical Data shall be the property of Customer but that NxStage may continue to use such data learned by NxStage in the ordinary course of its business for complaint investigations, product improvements and service.

16. FORCE MAJEURE
NxStage or Customer will not be liable for any failure to perform under this Agreement, including any failure or delay in delivering Products, that is caused by raw material shortages, manufacturing or supply problems, delivery or labor problems, strikes, fires, floods, riots, acts of war, lock-outs, judicial or administrative orders, interruptions in transportation, inability to obtain materials upon reasonable prices or terms, or causes beyond NxStage’s control.  In such events, NxStage shall allocate Products and training capacity to Customer consistent with Customer’s then current share of NxStage’s Products in the field, and agrees that, during the duration of any inability to supply, Customer shall be relieved of its Minimum Purchase Requirements (as set forth in Schedule B-2) to the extent such inability to supply directly prevents Customer from satisfying these obligations.  Such obligations shall be reinstated upon the conclusion of an inability to supply, with such adjustments thereto as mutually agreed to by NxStage and Customer so as to reflect the impact of such inability to supply on Customer’s patient volumes.

17. CONFIDENTIALITY
NxStage and Customer agree not to disclose [**] regarding this Agreement to any other party.  

18. USE OF NAME
Neither party will use the other party’s name in promotional materials without the other party’s consent.  NxStage may refer to Customer as a customer of NxStage when asked, or if required by law.  Additionally, notwithstanding the foregoing, NxStage may refer to Customer on NxStage’s website under a “Find a Provider” or similar feature.

19. LIMITATION OF LIABILITY
IN NO EVENT SHALL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER PARTY UNDER THIS AGREEMENT FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, PUNITIVE, OR OTHER INDIRECT DAMAGES.  In addition, in no event will NxStage’s total liability to Customer exceed the [**] NxStage by Customer for all Systems purchased hereunder.

20.  INSURANCE
NxStage shall, during the term of this Agreement and for a period of six (6) years following the termination or expiration of this Agreement, maintain product liability insurance for the Products. The insurance must have minimum limits of at least five million dollars ($5,000,000) per occurrence.

NxStage shall, during the term of this Agreement and for a period of three (3) years following the termination or expiration of this Agreement, maintain comprehensive general liability insurance and broad form contractual liability insurance to cover claims related to its premises and operations, personal injuries, property damage and independent contractors. The insurance must have minimum limits of at least one million dollars ($1,000,000) per occurrence.

Simultaneously with the execution of this Agreement, NxStage shall provide to Customer certificates of insurance, issued by a company or companies reasonably acceptable to Customer, evidencing the existence of the insurance required to be maintained pursuant to this Section 20 and providing that Customer is an additional insured under such policies. NxStage agrees to provide at least thirty (30) days notice of the expiration or cancellation of any insurance required by this Section 20.

21. INDEMNIFICATION
NxStage agrees to indemnify, defend and hold harmless Customer, its officers, directors, employees, agents, successors and assigns (each, a “Customer Indemnity”) from any and all third party claims, demands, actions, losses, proceedings, expenses, damages, liabilities, costs, expenses (including reasonable attorney’s fees and costs) and judgments (“Loss”) arising out of (i) injury or damage caused by any design or manufacturing defect of the Products covered under this Agreement when such Products are used in accordance with NxStage User’s Guides and package inserts, (ii) the negligent acts or omissions of NxStage or its employees or agents, (iii) any claim or allegation that the use of the Products in accordance with the terms of this Agreement and with then-current Product user’s guides or instructions for use infringes upon any United States intellectual property right of any third party, and (iv) any breach by NxStage of its representations, warranties and covenants hereunder; provided in each case that such indemnity shall not apply to the extent any Losses arise out of the negligence or willful misconduct of any Customer Indemnity or its patients.

Customer agrees to indemnify, defend and hold harmless NxStage, its officers, directors, employees, agents, successors and assigns (each, a “NxStage Indemnity”) from any and all Loss arising out of (a) the negligent acts or omissions of Customer or its employees or agents, or patients, or (b) any breach by Customer of its representations, warranties and covenants hereunder; provided in each case that such indemnity shall not apply to the extent any Loss arises out of the negligence or willful misconduct of any NxStage Indemnity.

22. CUSTOMER REPRESENTATION
Customer warrants and represents that this Agreement and all purchase orders, Patient Orders, amendments, and other documents provided hereunder has been and shall be duly executed by its duly authorized officers or agents, and that NxStage shall be entitled to rely on and perform under all such documents.  Customer further represents that Fresenius USA Marketing, Inc. is the primary entity through which Fresenius Medical Care AG & Co. KGaA, and its subsidiaries, sell renal products (including dialysis equipment and related disposables) in the United States.

23.  ENTIRE AGREEMENT, AMENDMENT, ASSIGNMENT AND GOVERNING LAW
This Agreement and the CDA contain the entire agreement between NxStage and Customer relating to the subject matter hereof.  All prior negotiations, correspondence and covenants of the parties not set forth in this Agreement or the CDA are not binding on either Customer or NxStage.  Any conflicting or additional terms contained in any purchase order or other document submitted by Customer shall not be valid unless signed by the Chief Financial Officer or Chief Executive Officer of NxStage.  Any amendment to this Agreement, including without limitation, any requests to add Authorized Customer Locations, shall only be effective if agreed to in writing by both parties, and in the case of NxStage, if signed by the Chief Financial Officer or Chief Executive Officer of NxStage.  On and after January 1, 2010, Customer shall not be restricted from adding new sites/facilities to Schedule D in any continental U.S. location provided (i) NxStage in-service and [**] has been scheduled for each such new site/facility, (ii) the site/facility had developed appropriate policies and procedures and [**] materials related to the System One, and (iii) Customer is not otherwise in breach of this Agreement.  NxStage will in good faith consider expanding the territory covered by this Agreement to include Hawaii, Alaska and U.S. Territories, provided the parties are able to mutually agree to terms, including without limitation, relating to pricing, shipping and service.  This Agreement will be governed by the laws of the Commonwealth of Massachusetts and may not be assigned in whole or in part by Customer without NxStage’ prior written consent.  This Agreement shall survive a change-in-control of either party, and may be assigned by Customer or NxStage to any of its affiliates; provided that as a condition to such assignment, the Agreement shall be guaranteed by Fresenius USA Marketing, Inc. or NxStage Medical, Inc., respectively.  Those provisions which are intended to survive the termination of this Agreement, including without limitation Sections 3, 5, 6, 7, 8, 11, 12 and 15 through Section 29 shall survive termination, and shall further apply to the affiliates of each of Customer and NxStage during the Contract Term and thereafter.

24.  NOTICES
All notices required or permitted to be given hereunder shall, unless expressly provided otherwise, be in writing, properly addressed, postage pre-paid and delivered by hand, certified or registered mail, postage prepaid, or overnight courier with instructions for overnight delivery, to the parties at their notice address set forth in this Agreement.  A notice will be deemed effective as indicated:  (i) if in writing and delivered in person, on the date it is delivered, or one day following delivery to an overnight courier with instructions for overnight delivery; or (ii) if sent by certified or registered mail (airmail if overseas) (return receipt requested) five (5) days after deposit in the US mails.  NxStage or Customer may change its notice address by providing notice thereof in accordance with this Section.

Notices should be sent to the following addresses:

Fresenius USA Marketing, Inc.
Senior Director, Materials Management
920 Winter Street
Waltham, MA 02451

With a copy to Customer’s General Counsel at the same address

NxStage Medical, Inc.
Senior Vice President, Commercial Operations
439 South Union Street, 5th Floor
Lawrence, MA  01843

With a copy to NxStage’s General Counsel at the same address

25.  TERMINATION
If one of the parties hereto becomes the subject of bankruptcy proceedings, becomes operated by a receiver, makes an assignment for the benefit of creditors, or loses its eligibility to bill for services under the Medicare or Medicaid programs, then the other party hereto, may, at its option, terminate this Agreement and any other agreements between NxStage and Customer.  Upon termination, NxStage shall be obligated to continue to sell Customer Monthly Dialysis Supplies at pricing and on terms consistent with those provided to its other customers buying similar quantities, for so long as Customer has patients using the System, up to a maximum of six (6) years from the original purchase date of each System.

26.  SEVERABILITY
In the event any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, provided however if any such term is an essential element of this Agreement without which either Party would not have entered into this Agreement, the parties shall promptly negotiate in good faith a replacement therefor, failing which the Agreement may be terminated by either Party.

27.  NO WAIVER
No failure or delay on the part of either party in exercising any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

28.  PUBLICITY.
 Neither party shall issue a press release or announcement concerning this Agreement or the transactions contemplated hereby.  Nothing contained in this paragraph shall prevent any party from making any disclosures required under the Securities Exchange Act of 1934, as amended, or under the rules and regulations of any national securities exchange on which its shares of capital stock are listed; provided however, that if this Agreement is required to be publicly filed, 

the party obligated to file shall endeavor in good faith to obtain the consent of the other party hereto with respect to the form of the documents to be filed and a request for confidential treatment of all sensitive business terms contained herein.

26.  ARBITRATION. 
Any dispute arising out of or relating to this Agreement, including the breach, termination or validity thereof, shall be finally resolved by confidential binding arbitration.  The parties hereto shall mutually select one arbitrator, or if the parties are unable to agree, the American Arbitration Association (the “AAA”) shall select such arbitrator.  The arbitration shall be governed by the Commercial Arbitration Rules of the AAA then in effect.  The place of arbitration shall be New Castle County, Delaware.

The arbitrators’ authority to grant relief shall be subject to the United States Arbitration Act at 9 U.S.C. 1-16 et seq., or any amendments thereof or successor Law (the “Arbitration Act”), the provisions of this Agreement, and the ABA-AAA Code of Ethics for Arbitrators in Commercial Disputes.

The arbitrator shall determine the rights and obligations of the parties according to the substantive and procedural laws of the State of Delaware.  The arbitrator shall have no power or authority to make awards or issue orders of any kind or amount other than as expressly permitted by this Agreement.  The decision of the arbitrator shall follow the plain meaning of the relevant documents.  The decision of and award by the arbitrator shall be final, binding and conclusive upon such parties.  Judgment upon any award rendered by the arbitrator may be entered in any court having jurisdiction.  All post award proceedings shall by governed by the Arbitration Act.

Schedule B-1
Chronic Outpatient Therapy Agreement
Monthly Dialysis Supplies
    
A.    The following pricing terms apply to the purchase of Monthly Dialysis Supplies for NxStage System One patients.  “Monthly Dialysis Supplies” shall mean the PureFlow SL Monthly Dialysis Supplies or Express Monthly Dialysis Supplies required for one month of therapy.  “PureFlow SL Monthly Dialysis Supplies” shall mean System One cartridges with pre-attached filter and PureFlow SL disposable cartridges and sets required to prepare PureFlow dialysate for the prescribed therapy frequency and fluid volume.  “Express Monthly Dialysis Supplies” shall mean System One cartridges with pre-attached filter and bagged PureFlow Express premixed dialysate for the prescribed therapy frequency and fluid volume.  Pricing is per patient month and shipments of Monthly Dialysis Supplies will be based on the prescribed frequency and the inventory needs of the patient, as reported by the patient to NxStage customer service.  

B.    Pricing for PureFlow SL Monthly Dialysis Supplies is only valid where patient’s incoming water quality meets panel 1 and panel 2 of the EPA Safe Drinking Water Act.  Customer shall provide sufficient evidence of incoming water quality to NxStage upon NxStage’s request.  Pricing for Express Monthly Dialysis Supplies is only valid for patients within [**] miles of the applicable Authorized Customer Location responsible for that patient’s care.  For patients outside of this [**] mile radius, additional charges may apply.  

C.    Invoices shall be sent to the applicable Authorized Customer Location and a copy of each such Invoice shall be sent to the corporate division responsible for such Authorized Customer Location.

D.    As set forth in the price list table below, and subject to the requirements below, pricing for Monthly Dialysis Supplies in any particular calendar quarter will be calculated based on [**] (as measured on the last day of the immediately preceding [**]).  For purposes hereof, the term [**] is defined to mean the [**].

E.    For purposes of clarification, the following shall not be counted towards [**]:

		
	(a)
	[**];

		
	(b)
	patients prescribed to receive therapy with the NxStage System One (i) in a nursing home or in an in-center self-care setting or (ii) [**]; and

		
	(c)
	any chronic patients that are prescribed to receive home therapy with the NxStage System One at an Acquired Site or Management Contract Site (as such terms are defined in Schedule A, Section 2).

F.    Subject to any [**] that may be applicable pursuant to Schedule A, Section 2, during any calendar quarter during the Initial Term, Customer shall receive the Contract Price listed in the third column of the price list below (the “Contract Price”) so long as Customer meets or exceeds the following threshold [**] applicable to the immediately preceding [**]:

	
		
	Immediately Preceding [**]
	Threshold [**]

	[**]
	[**] or more

	[**]
	[**] or more

	[**]
	[**] or more

	[**]
	[**] or more

	[**]
	[**] or more

	[**]
	[**] or more

G.    If Customer fails to achieve the threshold [**] applicable to the immediately preceding [**] as identified above, Customer’s pricing during a [**] will be as outlined in the price list table below.  For the sake of clarity, even 

if Customer has failed to achieve the Contract Price in a [**] for failure to meet the threshold [**] applicable to the immediately preceding [**], Customer may still achieve the Contract Price in another [**] if Customer meets or exceeds the [**] applicable to the immediately preceding [**].

By way of example only, if Customer’s [**] is [**] at the end of [**], then Customer’s pricing for [**] will be the Contract Price.

By way of further example, if Customer’s [**] is [**] at the end of [**], then Customer’s pricing for [**] will be as listed in the price list table below under the column entitled [**] Pricing.  If Customer’s [**] is then [**] at the end of [**], then Customer’s pricing for [**] will be the Contract Price.

Schedule B-1 (continued)
Chronic Outpatient Therapy Agreement
Monthly Dialysis Supplies

NxSTAGE PRICE LIST -- MONTHLY DIALYSIS SUPPLY PACKAGES*^
	
								
	Therapy Packages
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	[**]
	 
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-17-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-20-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-20-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-20-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-20-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-20-N-7-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-25-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-25-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-25-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-25-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-25-N-7-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-30-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-30-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-30-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-30-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-30-N-7-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-35-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-35-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-35-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-35-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-40-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-40-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-40-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-40-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-50-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-50-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-50-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-50-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-60-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-60-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-60-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	PF-60-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

Schedule B-1 (continued)
Chronic Outpatient Therapy Agreement
Monthly Dialysis Supplies

	
								
	Therapy Packages
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	[**]
	 
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-15-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-15-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-15-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-15-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-15-N-7-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-20-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-20-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-20-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-20-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-20-N-7-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-25-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-25-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-25-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-25-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-25-N-7-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-30-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-30-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-30-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-30-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-30-N-7-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-35-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-35-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-35-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-35-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-40-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-40-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-40-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-40-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-45-N-E-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-45-N-4-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-45-N-5-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	EX-45-N-6-SUP
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

* [**]

Schedule B-1 (continued)
Chronic Outpatient Therapy Agreement
Monthly Dialysis Supplies

Patient Reserve Quantity Inventory

Customer shall purchase a backup inventory of Supplies (the “Reserve”) for each patient at the time Customer submits the initial Patient Prescription Order for such patient.  The price for a [**] Reserve and a [**] Reserve are set forth in the table below.   

	
		
	Reserve
(placed at time of  initial Patient Prescription)

	[**]
	[**] of applicable pricing for Monthly Dialysis Supplies 

	[**]
	[**] of applicable pricing for Monthly Dialysis Supplies 

With respect to PureFlow SL patients for whom Customer has purchased a Reserve (whether [**] or [**]), NxStage shall ship [**] of PureFlow Express Premixed Dialysate bags. Such bags shall be used in those instances when there has been a reliability issue, as determined in Customer’s reasonable discretion, with a batch of dialysate made by such patient using the PureFlow SL.  If a patient must use such bags due to a PureFlow SL reliability issue, then [**] to Customer, NxStage shall replenish the bags of PureFlow Express Premixed Dialysate.  If the PureFlow Express Premixed Dialysate bags are used for a purpose inconsistent with a PureFlow SL reliability issue, then NxStage will [**] for replacement of the PureFlow Express Premixed Dialysate bags, including any expedited shipping requested. These replacement PureFlow Express Premixed Dialysate bags will be subtracted from the Balance, as described in Schedule A, Section 5.

Schedule B-2
Chronic Outpatient Therapy Agreement
Equipment/Ancillary/Replacement Supplies

The following pricing applies to the purchase of System equipment.  System equipment will be in good working order.  System equipment may or may not be new.   
	
						
	Part Number
	Category
	Description
	Quantity
	[**]
	[**]

	NX1000-1
	Hardware
	NxStage System OneTM Cycler Only
	Each
	[**]
	[**]

	FW-200
	Hardware
	Comfortmate Fluid Warmer
	Each
	[**]
	[**]

	FW-300
	Hardware
	Express Fluid Warmer
	Each
	[**]
	[**]

	NX2000-1
	Hardware
	PureFlow SL Control Unit
	Each
	[**]
	[**]

	NX2000-2
	Hardware
	PureFlow SL Cabinet
	Each
	[**]
	[**]

	NX0807
	Hardware
	Cycler (Including Warmer and Stand)
	Each
	[**]
	[**]

	NX0808
	Hardware
	Cycler (Including Warmer and Stand)
	Each
	[**]
	[**]

	NX0809
	Hardware
	Cycler (Including Warmer and Stand)
	Each
	[**]
	[**]

	NX0811
	Hardware
	Cycler (incl. Warmer & Stand), PFSL Control Unit, and Cabinet
	Each
	[**]
	[**]

	NX0812
	Hardware
	Cycler (incl. Warmer & Stand), PFSL Control Unit, and Cabinet
	Each
	[**]
	[**]

	NX0813
	Hardware
	Cycler (incl. Warmer & Stand), PFSL Control Unit, and Cabinet
	Each
	[**]
	[**]

TECHNOLOGY [**]

In consideration of (a) the revised pricing structure for Monthly Therapy Packages (including the possibility of [**] in accordance with Schedule A, Section 2) and (b) the addition of [**] to cover certain Equipment Service and Maintenance Costs (as described in Schedule C), NxStage hereby agrees to [**].  

Such [**] can take place when a [**] is returned for service, in which case Customer shall not be responsible for [**], except as described on Schedule C.  Customer may also request an [**] that is in good working order, in which case Customer shall be responsible for paying (or reimbursing NxStage) for all [**] associated with such [**].  

For the sake of clarity, for each [**] provided after [**], NxStage will [**] an amount that will be mutually agreed to by the parties.

Customer agrees that it will, on all applicable cost reports or in response to any payor request for acquisition cost information, accurately report, pursuant to Section 7 of Schedule A of this Agreement (Discounts and Rebates), that any [**] it receives under this Technology [**] section were acquired at [**].

Schedule B-2 (continued)
Chronic Outpatient Therapy Agreement
Equipment/Ancillary/Replacement Supplies

The following pricing applies to the purchase of ancillary or replacement supplies.  

	
						
	Part Number
	Category
	Description
	Quantity
	[**]
	[**]

	ANC-101
	Consumables
	Replacement Priming Line with medication port 
	30/Case
	[**]
	[**]

	ANC-200
	Consumables
	Drain Line extension
	24/Case
	[**]
	[**]

	CAR-124
	Consumables
	Cartridge w/o preattached dialyzer
	6/Case
	[**]
	[**]

	CAR-170
	Consumables
	Cartridge Express
	6/Case
	[**]
	[**]

	CAR-171
	Consumables
	Cartridge Express with anticoagulation line
	6/Case
	[**]
	[**]

	CAR-172
	Consumables
	Cartridge Express with medication ports
	6/case
	[**]
	[**]

	DTK-001
	Consumables
	Dialysate Test Kit
	25/Case
	[**]
	[**]

	FWS-206-B
	Consumables
	ComfortmateTM Warmer Disposable w/ 6 MLA lines
	24/Case
	[**]
	[**]

	FWS-209-B
	Consumables
	Comfortmate Warmer Disposable w/ 9 MLA lines
	24/Case
	[**]
	[**]

	FWS-304
	Consumables
	Express Warmer Disposable w/ 4 MLA lines
	24/Case
	[**]
	[**]

	FWS-308
	Consumables
	Express Warmer Disposable w/ 8 MLA lines
	24/Case
	[**]
	[**]

	PAK-001
	Consumables
	PureFlowTM SL PAK
	Each
	[**]
	[**]

	RFP-204
	Consumables
	Express Premixed Dialysate, 5L, Lactate 40 mEq/L, 1K
	2/Case
	[**]
	[**]

	RFP-205
	Consumables
	Express Premixed Dialysate, 5L, Lactate 35 mEq/L, 3K
	2/Case
	[**]
	[**]

	RFP-207
	Consumables
	Express Premixed Dialysate, 5L, Lactate 45 mEq/L, 1K
	2/Case
	[**]
	[**]

	RFP-209
	Consumables
	Express Premixed Dialysate, 5L, Lactate 45 mEq/L, 2K
	2/Case
	[**]
	[**]

	SAK-301 
	Consumables
	PureFlow SL SAK, 60L Lactate 45 mEq/L, 1K
	2/Case
	[**]
	[**]

	SAK-302
	Consumables
	PureFlow SL SAK, 60L Lactate 40 mEq/L, 1K
	2/Case
	[**]
	[**]

	SAK-303
	Consumables
	PureFlow SL SAK - 50L Lactate 45 mEq/L, 1K
	2/Case
	[**]
	[**]

	SAK-304
	Consumables
	PureFlow SL SAK - 60L Lactate 45 mEq/L, 2K
	2/Case
	[**]
	[**]

	SAK-305
	Consumables
	PureFlow SL SAK - 40L Lactate 45 mEq/L, 1K
	2/Case
	[**]
	[**]

	SAK-306
	Consumables
	PureFlow SL SAK - 50L Lactate 45 mEq/L, 2K
	2/Case
	[**]
	[**]

	SAK-307
	Consumables
	PureFlow SL SAK - 50L Lactate 40 mEq/L, 1K
	2/Case
	[**]
	[**]

	TNPK-204
	Consumables
	Ten cases of RFP-204
	10 Cases/Each
	[**]
	[**]

	TNPK-205
	Consumables
	Ten cases of RFP-205
	10 Cases/Each
	[**]
	[**]

	TNPK-207
	Consumables
	Ten cases of RFP-207
	10 Cases/Each
	[**]
	[**]

	TNPK-209
	Consumables
	Ten cases of RFP-209
	10 Cases/Each
	[**]
	[**]

	NX0153-P
	Accessories
	Wheeled Base/Cycler Stand
	Each
	[**]
	[**]

	NC1012
	Accessories
	Soft-sided Travel Case
	Each
	[**]
	[**]

	
						
	NC1079
	Accessories
	Hard-sided Travel Case
	Each
	[**]
	[**]

	NX2000-3
	Accessories
	PureFlow SL Wheeled Base
	Each
	[**]
	[**]

	FW-300-1
	Accessories
	Express Fluid Warmer Accessory Kit
	Each
	[**]
	[**]

	NX0642
	Accessories
	Cycler Base and Fluid Detection Sensor
	Each
	[**]
	[**]

	NX0664
	Accessories
	Fluid Detection Sensor
	Each
	[**]
	[**]

	APM517
	Accessories
	Molded Plastic Cycler Replica
	Each
	[**]
	[**]

	NC1816-1**
	Packaging
	Cycler Packaging
	Each
	[**]
	[**]

	NC3219**
	Packaging
	FW-200 Packaging
	Each
	[**]
	[**]

	NX0601**
	Packaging
	FW-300 Packaging
	Each
	[**]
	[**]

	NX0624**
	Packaging
	FW-300-1 Packaging
	Each
	[**]
	[**]

	NC0742**
	Packaging
	Cycler Stand (NX0248-P) box
	Each
	[**]
	[**]

	NC0380**
	Packaging
	IV pole shipping tube
	Each
	[**]
	[**]

	NC2980**
	Packaging
	PureFlow SL Control Unit Packaging
	Each
	[**]
	[**]

	NX0464**
	Packaging
	PureFlow Chassis Packaging
	Each
	[**]
	[**]

	NC2320*
	Documentation
	NxStage System One Cycler Users Guide
	Each
	[**]
	[**]

	NC2327*
	Documentation
	PureFlow SL Users Guide
	Each
	[**]
	[**]

	NC1760
	Documentation
	Express Fluid Warmer User Guide (included in FW-300-1)
	Each
	[**]
	[**]

	NC0118*
	Documentation
	ComfortMate Fluid Warmer User  Guide
	Each
	[**]
	[**]

	NC1344
	Documentation
	Troubleshooting Rinseback Tool
	Each
	[**]
	[**]

* May be included in a [**] redeployment package as needed for each new patient start.
** Shipping is [**] of the packaging material.

Schedule B-2 (continued)
Chronic Outpatient Therapy Agreement
Equipment/Ancillary/Replacement Supplies
	
						
	Part Number
	Category
	Description
	Quantity
	[**]
	[**]

	NX0232-R
	Replacement Parts - Cycler
	Jewel Box Computer
	Each
	[**]
	[**]

	NX0740-A
	Replacement Parts - Cycler
	ConNxBoxTM Computer (AT&T)
	Each
	[**]
	[**]

	NX0740-S
	Replacement Parts - Cycler
	ConNxBoxTM Computer (Sprint)
	Each
	[**]
	[**]

	NC0746*
	Replacement Parts - Cycler
	USB thumb drive
	Each
	[**]
	[**]

	NX0233*
	Replacement Parts - Cycler
	Phone line connection kit (splitter, cord, instructions)
	Each
	[**]
	[**]

	NX0424
	Replacement Parts - Cycler
	Adapter Feet for Cycler on PureFlow SL without Cycler Base 
	4/Pkg
	[**]
	[**]

	NX0429-P
	Replacement Parts - Cycler
	Saline hook
	Each
	[**]
	[**]

	NX0593
	Replacement Parts - Cycler
	Filter tilter
	Each
	[**]
	[**]

	NX0248-01
	Replacement Parts - Cycler
	Table top stand and 4-hanger top for IV pole
	Each
	[**]
	[**]

	NX0248-02
	Replacement Parts - Cycler
	IV pole
	Each
	[**]
	[**]

	228
	Replacement Parts - Cycler
	4-hanger top for IV pole
	Each
	[**]
	[**]

	NC1292
	Replacement Parts - Cycler
	Screws to attach pole to stand
	Each
	[**]
	[**]

	NC0384
	Replacement Parts - Cycler
	Screws to attach hanger to pole 
	Each
	[**]
	[**]

	86557030
	Replacement Parts - Cycler
	0.5 meter Warmer (FW-200) cord
	Each
	[**]
	[**]

	NX0599
	Replacement Parts - Cycler
	Express Fluid Warmer Bag Cover
	Each
	[**]
	[**]

	NX0600
	Replacement Parts - Cycler
	Express Fluid Warmer Bottom Mount
	Each
	[**]
	[**]

	NX0484
	Replacement Parts - Cycler
	Express Fluid Warmer Top Mount
	Each
	[**]
	[**]

	NX0485
	Replacement Parts - Cycler
	Express Fluid Warmer Collapsible Pole
	Each
	[**]
	[**]

	86557300
	Replacement Parts - PFSL
	1 meter Chassis Interconnect cord
	Each
	[**]
	[**]

	NC3822
	Replacement Parts - PFSL
	Replacement air filter & guard cover
	Each
	[**]
	[**]

	NC3823
	Replacement Parts - PFSL
	Replacement air filter & guard filter
	Each
	[**]
	[**]

	NC0985
	Replacement Parts - PFSL
	John Guest Check Valve
	Each
	[**]
	[**]

	NC1148
	Replacement Parts - PFSL
	Aerator Adapter 15/16-27 Male X 55/
	Each
	[**]
	[**]

	NC1176
	Replacement Parts - PFSL
	12' Power cord
	Each
	[**]
	[**]

	NC1180
	Replacement Parts - PFSL
	Drain Saddle Valve
	Each
	[**]
	[**]

	NC1196
	Replacement Parts - PFSL
	Diverter Aerator - Pull Down
	Each
	[**]
	[**]

	NX0305
	Replacement Parts - PFSL
	Water connection kit - under sink
	Each
	[**]
	[**]

	NX0306
	Replacement Parts - PFSL
	20' Drain Line Kit
	Each
	[**]
	[**]

	NX0415
	Replacement Parts - PFSL
	Water connection kit - faucet
	Each
	[**]
	[**]

	NX0416
	Replacement Parts - PFSL
	Water connection kit - washer hook up
	Each
	[**]
	[**]

	NX0509
	Replacement Parts - PFSL
	USB cable (J1)
	Each
	[**]
	[**]

	NX0513
	Replacement Parts - PFSL
	Control Unit adapter
	2/Case
	[**]
	[**]

	NX0516
	Replacement Parts - PFSL
	PureFlow SL drain line replacement (NC0991 Raw)
	Each
	[**]
	[**]

	NX0517
	Replacement Parts - PFSL
	Water Supply Line Replacement
	Each
	[**]
	[**]

	NX2000-4*
	Replacement Parts - PFSL
	Pretreatment Kit (includes hookups, wtr lines, drain)
	Each
	[**]
	[**]

	SED-001
	Replacement Parts - PFSL
	Sediment filter for pre-treatment kit
	Each
	[**]
	[**]

* May be included in a [**] redeployment package as needed for each new patient start.
        

Schedule B-2 (continued)
Chronic Outpatient Therapy Agreement
Redeployment and New Patient Packages

	
					
	Redeployment Packages*1

	Part Number
	Description
	 
	Part Number
	Description

	NX0731
	Pre-Mixed Dialysate Patient Redeployment Kit 
	 
	NX0730
	PureFlow SL Patient Redeployment Kit 

	NC0118 
	ComfortMate Fluid Warmer User’s Guide
	 
	CPM-001
	Conductivity Preventative Maintenance

	NC2320-UG 
	Bound System One User's Guide 
	 
	NX2000-4
	Pretreatment Kit (includes hookups, wtr lines, drain)

	NC2323
	Cycler Base IFU
	 
	NC2327
	PF Users Guide

	NC1760
	NxStage Express Fluid Warmer User’s Guide
	 
	NC0118
	ComfortMate Fluid Warmer User’s Guide

	NC0746
	NxStage Jump Drive
	 
	NC1760
	NxStage Express Fluid Warmer User’s Guide

	NC1560
	Portable Thumb Drive Instructions
	 
	NC2320-UG 
	Bound System One User's Guide 

	NC1344
	Rinseback Tool
	 
	NC2323
	Cycler Base IFU

	 
	 
	 
	NC0746
	NxStage Jump Drive

	*1
	 Redeployment Packages are provided at [**] upon Customer’s request following each instance of system equipment redeployment.
	 
	NC1560
	Portable Thumb Drive Instructions

	 
	 
	09325-F/30
	External Fan, Filter and Guard

	 
	 
	NC1344
	Rinseback Tool

	 
	 
	 
	 
	 

	New Patient Packages*2

	Part Number
	Description
	 
	Part Number
	Description

	NX0807
	Pre-Mixed Dialysate Patient Starter Kit
	 
	NX0809
	Pre-Mixed Dialysate Patient Starter Kit

	NX1000-1
	NxStage System One - Chronic
	 
	NX1000-1
	NxStage System One - Chronic

	NX0740-S
	ConNxBox with Sprint Modem
	 
	NX0232-R
	Jewel Box

	NX0642
	Cycler Base and Fluid Detection Sensor
	 
	NX0642
	Cycler Base and Fluid Detection Sensor

	FW-300
	Express Fluid Warmer
	 
	FW-300
	Express Fluid Warmer

	FW-300-1
	Express Warmer Accessory Kit
	 
	FW-300-1
	Express Warmer Accessory Kit

	NC2320-UG
	Bound System One User’s Guide
	 
	NC2320-UG
	Bound System One User’s Guide

	NC0746
	NxStage Jump Drive
	 
	NC0746
	NxStage Jump Drive

	NC1560
	Portable Thumb Drive Instructions
	 
	NC1560
	Portable Thumb Drive Instructions

	NC1344
	Rinseback Tool
	 
	NC1344
	Rinseback Tool

	 
	 
	 
	 
	 

	Part Number
	Description
	 
	 
	*2 New patient packages are provided at the [**] set forth in Schedule B-4.

	NX0808
	Pre-Mixed Dialysate Patient Starter Kit 
	 
	 

	NX1000-1
	NxStage System One - Chronic
	 
	 
	 

	NX0740-A
	ConNxBox with AT&T Modem
	 
	 

	NX0642
	Cycler Base and Fluid Detection Sensor
	 
	 
	 

	FW-300
	Express Fluid Warmer
	 
	 
	 

	FW-300-1
	Express Warmer Accessory Kit
	 
	 
	 

	NC2320-UG
	Bound System One User’s Guide
	 
	 
	 

	NC0746
	NxStage Jump Drive
	 
	 
	 

	NC1560
	Portable Thumb Drive Instructions
	 
	 
	 

	NC1344
	Rinseback Tool
	 
	 
	 

Schedule B-2 (continued)
Chronic Outpatient Therapy Agreement
Redeployment and New Patient Packages
	
					
	New Patient Packages*2 (Continued)

	Part Number
	Description
	 
	Part Number
	Description

	NX0811
	PureFlow SL Patient Starter Kit 
	 
	NX0813
	PureFlow SL Patient Starter Kit 

	NX1000-1
	NxStage System One - Chronic
	 
	NX1000-1
	NxStage System One - Chronic

	NX0740-S
	ConNxBox with Sprint Modem
	 
	NX0232-R
	Jewel Box

	NX0642
	Cycler Base and Fluid Detection Sensor
	 
	NX0642
	Cycler Base and Fluid Detection Sensor

	NX2000-1
	PFSL Control Unit
	 
	NX2000-1
	PFSL Control Unit

	NX2000-4
	Pretreatment Kit (includes hookups, wtr lines, drain)
	 
	NX2000-4
	Pretreatment Kit (includes hookups, wtr lines, drain)

	FW-300
	Express Fluid Warmer
	 
	FW-300
	Express Fluid Warmer

	FW-300-1
	Express Warmer Accessory Kit
	 
	FW-300-1
	Express Warmer Accessory Kit

	NX0429-P
	Saline hook
	 
	NX0429-P
	Saline hook

	NC2320-UG
	Bound System One User’s Guide
	 
	NC2320-UG
	Bound System One User’s Guide

	NC2327
	PF Users Guide
	 
	NC2327
	PF Users Guide

	NX2000-2
	PFSL Cabinet
	 
	NX2000-2
	PFSL Cabinet

	NC0746
	NxStage Jump Drive
	 
	NC0746
	NxStage Jump Drive

	NC1560
	Portable Thumb Drive Instructions
	 
	NC1560
	Portable Thumb Drive Instructions

	NC1344
	Rinseback Tool
	 
	NC1344
	Rinseback Tool

	 
	 
	 
	 
	 

	Part Number
	Description
	 
	 
	*2 New patient packages are provided at the [**] set forth in Schedule B-4.

	NX0812
	PureFlow SL Patient Starter Kit
	 
	 

	NX1000-1
	NxStage System One - Chronic
	 
	 
	 

	NX0740-A
	ConNxBox with AT&T Modem
	 
	 

	NX0642
	Cycler Base and Fluid Detection Sensor
	 
	 
	 

	NX2000-1
	PFSL Control Unit
	 
	 
	 

	NX2000-4
	Pretreatment Kit (includes hookups, wtr lines, drain)
	 
	 
	 

	FW-300
	Express Fluid Warmer
	 
	 
	 

	FW-300-1
	Express Warmer Accessory Kit
	 
	 
	 

	NX0429-P
	Saline hook
	 
	 
	 

	NC2320-UG
	Bound System One User’s Guide
	 
	 
	 

	NC2327
	PF Users Guide
	 
	 
	 

	NX2000-2
	PFSL Cabinet
	 
	 
	 

	NC0746
	NxStage Jump Drive
	 
	 
	 

	NC1560
	Portable Thumb Drive Instructions
	 
	 
	 

	NC1344
	Rinseback Tool
	 
	 
	 

Schedule B-3
Chronic Outpatient Therapy Agreement
Delivery Services

PUREFLOW SL
	
			
	Part Number
	Service
	Charge

	Standard
	Product ([**] cases) delivered to patient’s front door and, if patient not home, left in protected area.  Delivery is approximately [**] according to delivery schedule NxStage establishes with patient.  No appointment.
	[**]

	DSC-001
	Inside delivery (over-the-threshold) with an appointment and a [**] hour delivery window.*
	[**]

	DSC-002
	After hours delivery (after 5 PM)*
	[**]

	DSC-003
	Weekend/holiday delivery*
	[**]

	DSC-012
	Additional deliveries per month ([**] per month is standard)
	[**]

PUREFLOW EXPRESS (BAGS)
	
			
	Part Number
	Service
	Charge

	Standard
	Product ([**] cases) delivered to patient’s home (over-the-threshold) with an appointment and a 4-hour delivery window according to delivery schedule established with patient.
	[**]

	DSC-004
	Redelivery/partial delivery (e.g., patient refusal)
	[**]

	DSC-002
	After hours delivery (after 5 PM)*
	[**]

	DSC-003
	Weekend/holiday delivery*
	[**]

	DSC-005
	Additional deliveries per month ([**] per month  is standard)
	[**]

EQUIPMENT/OTHER
	
			
	Part Number
	Service
	Charge

	DSC-006
	Hardware/Supplies pickup --  return to center
	[**]

	DSC-007
	System packaging 
	[**]

	DSC-010
	After hours emergency delivery (after 5 PM)*
	[**]

	DSC-011
	Request of shipment in less than normal lead time ([**] business days)
	[**]

	DSC-009
	Cleaning of Systems is available on a “swap” basis. Systems returned for cleaning will be exchanged with “like new” Systems.  Customer is responsible for System repairs beyond normal use and wear.
	[**]

OFF SCHEDULE SHIPMENTS
	
			
	Part Number
	Service
	Charge

	DSC-013
	Shipping & handling for supplies & boxes
	[**]

	Freight
	System replacements (damage, loss)
	[**]

* Where available - not available in all areas

NOTE: Center authorization is required for the above delivery services.  The above delivery services and pricing may be amended at NxStage’s discretion with [**] days advanced written notice.

Schedule C
Chronic Outpatient Therapy
Warranty, Service, Recalls

Warranties
For a period of [**] following Customer’s receipt of Products under this Agreement, NxStage warrants that (a) the Products shall be free from defects in material and workmanship when delivered, and (b) the Products are fit for the indications described in their User’s Guides and package inserts when used in accordance with the instructions for use provided in such User’s Guides and package inserts.  Unless such Products are used in accordance with such instructions and indications, this warranty is void and of no force or effect.  NO OTHER EXPRESS OR IMPLIED WARRANTY EXISTS FOR ANY PRODUCTS, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT.  The warranties set forth herein shall extend only to the original purchaser.  These warranties are not assignable or transferable.  If, however, Customer transfers or resells Products as permitted by Schedule A, Section 3, NxStage will offer to the new owner of the transferred Products any time that remains under the [**] warranty for the transferred Products pursuant to a separate agreement between such new owner and NxStage.

NXSTAGE’S SOLE OBLIGATION AND CUSTOMER’S SOLE REMEDY FOR BREACH OF ANY WARRANTY PROVIDED HEREUNDER SHALL BE LIMITED TO PRODUCT REPAIR OR REPLACEMENT, AT NXSTAGE’S OPTION AND EXPENSE.  ALL WARRANTIES SHALL BE VOIDED IF (i) the Product has been repaired or serviced by persons other than NxStage personnel or its authorized representatives, (ii) the replacement or repair is required due to the misuse or abuse of the Product, as determined by NxStage, (iii) the System is used with non-NxStage disposable products, (iv) the replacement or repair is required for reasons other than defects in materials and workmanship or, in the case of Systems, normal wear and tear, as determined by NxStage, or (v) the product is not used in accordance with its instructions for use, as determined by NxStage.  IN NO EVENT SHALL NXSTAGE BE LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, PUNITIVE OR OTHER INDIRECT DAMAGES ARISING OUT OF THIS AGREEMENT OR THE PERFORMANCE OF SERVICES AND/OR SUPPLY OF PRODUCTS HEREUNDER.
Service
System equipment may only be serviced by NxStage at this time.  If a System in active use by Customer needs to be returned for service, NxStage will swap the System requiring service with another System in good working order, which may or may not be new, [**] to Customer except as set forth below. To obtain service on System equipment, Customer shall follow the procedure set forth below.  With respect to each System purchased by Customer, including those purchased prior to the Effective Date (e.g., pursuant to an expired or terminated contract), NxStage shall charge fees for NxStage equipment service and maintenance (“Service Fees”) on such System in accordance with the table and terms set forth below.  For the sake of clarity, if Customer transfer or resells System equipment as permitted by Schedule A, Section 3, then (a) Customer’s [**] will be the [**] that NxStage will use to calculate service fees for the [**] System equipment and (b) if Customer [**] the System equipment after a [**], then the [**] of the System equipment shall be charged service fees under [**] with NxStage as if the [**]. 

	
						
	Equipment Service and Maintenance Costs -- Purchased Equipment+

	[**]
	[**]

	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

	[**]
	[**]
	[**]
	[**]
	[**]
	[**]

+ For System equipment for which the applicable time period set forth in the table above has not yet lapsed, service is [**].
*This is intended to cover units [**] by NxStage customers acquired by Customer.

With respect to Service Fees owed during any month of the Term, NxStage will invoice Customer for such fees by no later than [**].  Each invoice shall identify the relevant equipment by PIN and the original serial number and current serial number associated with the PIN and shall be sent to the Authorized Customer Location that is currently in 

possession of the equipment (based on the location that is listed in NxStage’s database).  Customer is responsible for notifying NxStage if Customer transfers equipment from one Authorized Customer Location to another Authorized Customer Location.  Notwithstanding the foregoing, Customer agrees and acknowledges that NxStage has until [**] to invoice for Service Fees owed for [**].

Starting [**] and by the end of every [**] thereafter during the Term, NxStage shall provide to Customer a written report of all NxStage equipment ever purchased by Customer (including NxStage equipment purchased through Customer’s acquisitions of existing NxStage programs) with the following detail:  (a) PIN, (b) original PIN issue date, (c) the Authorized Customer Location to which the PIN was originally shipped,(d) the original serial number associated with the PIN, (e) the current location of the PIN (based on the location that is listed in NxStage’s database), (f) the current serial number associated with the PIN, (g) the date the PIN was purchased, and (h) the date on which NxStage will begin [**] on the PIN.

Notwithstanding any other provision contained in the Agreement and for the sake of clarity, the foregoing pricing for Service Fees shall apply only during the Term and shall not survive termination of the Agreement.  However, upon termination, NxStage shall [**].  After termination, for any System equipment purchased prior to the Effective Date or during the Contract Term for which the applicable time period set forth in the table above has not yet lapsed, for the remaining period of time, NxStage shall [**], in accordance with Section 25 of Schedule A.  Except as stated in the foregoing sentence, after termination, NxStage may at any time separately [**].  After termination, for any System equipment purchased prior to the Effective Date or during the Contract Term for which the applicable time period set forth in the table above has lapsed, for [**] years from the original purchase date of such System equipment, the fees for service charged by NxStage to Customer shall not be more than [**].

Additional service charges for Systems shall also apply in the event (i) the System has been repaired or serviced by persons other than NxStage personnel or its authorized representatives, (ii) the replacement or repair is required due to the misuse or abuse of the System, as reasonably determined by NxStage, (iii) the System is used with non-NxStage disposable products, (iv) the replacement or repair is required for reasons other than defects in materials and workmanship or, in the case of equipment, normal wear and tear, as determined by NxStage, or (v) the System is not used in accordance with its instructions for use, as determined by NxStage.  Such additional fees shall be charged consistent with NxStage’s then-current Fee for Service Program, the details of which shall be provided to Customer upon request.

To obtain service, Customer must contact NxStage Technical Support.  Prior authorization from NxStage must be obtained before any Product is returned for service.  Systems and other equipment supplied hereunder requiring service must be cleaned, according to the directions on the labeling.  If Products are not cleaned, as instructed, NxStage shall charge Customer a minimum $[**] cleaning fee for each piece of equipment.  NxStage will arrange for the shipment of all Products to be returned for service.  NxStage will not be responsible for servicing Products that have not been shipped according to this procedure.  NxStage shall use commercially reasonable efforts to repair or replace serviced Product within approximately [**] hours of giving authorization for service.  Replaced Products shall be in good working order; they may or may not be new, and they may or may not be the same products originally shipped to Customer hereunder.  For this purpose, good working order shall mean that the Product shall perform in accordance with its specifications and manuals, and be in physical condition and functionality equal to or better than that of the Product being replaced.  In addition, NxStage shall use all commercially reasonable efforts to ensure that replacement Systems provided to Customer in connection with a service swap shall have an average days in service approximately equal to or less than the estimated days in service of the System returned by Customer in connection with a service swap hereunder.  

Periodically, NxStage may elect to diagnose equipment servicing issues remotely, through data analysis or phone interviews.  If equipment is returned at the insistence of Customer, or its patients, contrary to the recommendation of NxStage, and it is subsequently determined in the reasonable discretion of NxStage that such equipment was in good working order, Customer shall reimburse NxStage for the related costs of such return.  NxStage shall use reasonable efforts to notify a designated Customer representative before accepting the return of equipment under such circumstances.

Recalls
In the event that any governmental agency or authority requests a recall, a field corrective action, product withdrawal or takes similar action in connection with any Product (each a "Product Recall"), or in the event NxStage determines an event, incident or circumstance has occurred that results in the need for a Product Recall, NxStage shall promptly notify Customer within [**] of such governmental agency or authority request or action or of NxStage's decision to voluntarily institute a Product Recall. In the event of a Product Recall of any Product, NxStage shall (a) reimburse Customer for reasonable handling expenses incurred in returning units of the Product to NxStage or otherwise implementing the Product Recall; and (b) use all commercially reasonable efforts to promptly repair or replace the recalled Product with another NxStage product performing the same function in good working order. If a Product Recall materially and negatively impacts Customer's ability to perform under this Agreement, NxStage shall allocate replacement Product to Customer consistent with Customer's then-current share of NxStage's Product in the field.        

Schedule D
Chronic Outpatient Therapy Agreement
Authorized Customer Locations

[See attached]

[**]

64 pages were omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

    
    

Schedule E
Chronic Outpatient Therapy Agreement
Hawaii

The following additional specific terms and conditions pertain to purchase of the NxStage System One, Monthly Dialysis Supplies, related products and services for use in Hawaii for chronic patient therapy.  Pricing in Schedules B-1, B-2 and B-3 of the Agreement shall apply with respect to the purchase of the System One, Monthly Dialysis Supplies, related products and services in Hawaii for use in chronic patient therapy unless otherwise noted.  Additionally, if the terms and conditions of this Schedule conflict with or are in addition to the terms of the rest of this Agreement, the terms of this Schedule shall control with respect to Hawaii equipment, Monthly Dialysis Supplies, and services.

1.  HAWAII EQUIPMENT AND MONTHLY SUPPLIES
All Systems will be purchased at pricing outlined in Schedule B-2. NxStage shall ship Systems to Customer’s [**] warehouse. It will be Customer’s responsibility to ship Systems from their warehouse to its Authorized Customer Locations in Hawaii.  

The Monthly Dialysis Supplies as outlined on Schedule B-1 will be made available to Customer’s Hawaii home patients provided that (a) Monthly Dialysis Supplies must be ordered in [**] month [**] quantities per patient at the pricing outlined in Schedule B-1 (each a “Hawaiian Patient Order”), and (b) all Hawaiian Patient Orders must be submitted at the same time.  For each Hawaiian Patient Order, Customer will be charged a $[**] fee to have such Hawaiian Patient Order on its own pallet, shrink-wrapped with the packing list identifying the patient to whom it will be delivered.  

Monthly Dialysis Supplies prices quoted [**] freight to Customer’s [**] warehouse. Pricing is per patient month at physician prescribed frequency/fluid volume according to the choices outlined in Schedule B-1.  Monthly Dialysis Supplies shipments will be based on the prescribed frequency and the inventory needs of the patient, as reported to NxStage by Customer.

Other Supplies, as listed in Schedule B-2, may be purchased at the outlined pricing in Schedule B-2, and pricing [**] freight to the Customer’s [**] warehouse.

Systems shall be serviced consistent with the terms of Schedules B-2 and C; provided that System service swaps shall occur at the Customer’s [**] warehouse.

The purchase of System Supplies, related products and services must be initiated by purchase orders or NxStage System Patient Orders (form available upon request), signed by the prescribing physician for the patients who will receive chronic therapy. All System orders must be initiated by purchase orders. 

2.  OTHER
Customer will provide the clinical support, training, and ongoing therapy expertise to support Hawaiian patients.  NxStage technical support will be generally accessible 24/7, but customer service, product orders, and service exchanges may only be initiated by Customer personnel.
 

Schedule F
Chronic Outpatient Therapy Agreement
Experience the Difference

The “Experience the Difference” program (the “Program”) consists of NxStage customers working in cooperation with NxStage to offer qualifying in-center patients the opportunity to evaluate, for up to five (5) days, more frequent therapy with the NxStage System One.  

In order for a patient to qualify to participate in the Program, such patient must be a chronic in-center renal failure patient for whom a physician has determined that more frequent therapy is appropriate and for whom NxStage has received a Patient Prescription Order signed by a physician during the term of the Agreement.  

Product availability and pricing described in this Schedule F are valid only for more frequent therapy administered pursuant to the Program to qualifying patients who elect to participate in the Program.  

The following terms and conditions pertain to the provision of Products for use solely in conjunction with the Program:

1.  EQUIPMENT AND SUPPLIES

A)  Customer may submit an order pursuant to Schedule A, Section 1 of the Agreement and subject to Section 1(D) below, to NxStage identifying any Products required for the Program.  Customer may request, and NxStage will supply, Products for Customer’s patients participating in the Program.  NxStage will supply the required Supplies to Customer at [**].  Customer shall account fully and accurately for, and report the total value of, the [**] pricing received pursuant to this Schedule F on applicable cost reports in compliance with all applicable federal, state and local laws and regulations, including but not limited to the Medicare and Medicaid “antikickback” laws and “safe harbor” regulations for discounts.  In particular, Customer will (i) claim the benefit of [**] on System Supplies received from NxStage pursuant to this Schedule E in the fiscal year in which earned or in the following year, (ii) fully and accurately report such [**] in the applicable cost report, and (iii) provide, upon request by the U.S. Secretary of Health and Human Services, a State Medicaid agency or any other federally funded state health care program, complete information concerning the amount or value of the [**] received hereunder and identifying the goods purchased to which such [**] apply.   

B)  Notwithstanding the foregoing, instead of ordering Product from NxStage as described in Section 1(A) above, Customer may use any unused (or, with respect to the System One, unemployed) Product available at its center for the Program to minimize any Product deliveries required from NxStage during the Program.  

C)  Customer agrees that Products provided by NxStage pursuant to Section 1(A) above shall be used solely for purposes of the Program.

D)  PureFlow SL Supplies and PureFlow Express (Bags) Supplies (as defined in the chart below) will be made available by NxStage for Customer’s Program patients.  Such Supplies will only be shipped to Customer’s center in [**] quantities, and the prices quoted below [**] freight to Customer’s training facility.  Pricing is per [**] at physician prescribed fluid volume according to the choices outlined below.  
 

	
			
	PureFlow SL Supplies (means System One cartridges with pre-attached filter and PureFlow SL disposables cartridges and sets required to prepare dialysate for the prescribed frequency/fluid volume)
	[**]
	[**]

	ETDPF-20-N-5-SUP  5x weekly, 20L
	[**]
	[**]

	ETDPF-25-N-5-SUP  5x weekly, 25L
	[**]
	[**]

	ETDPF-30-N-5-SUP  5x weekly, 30L
	[**]
	[**]

	PureFlow Express (Bags) Supplies (Includes System One cartridges with pre-attached filter and premixed bagged dialysate to deliver prescribed frequency/fluid volume)
	[**]
	[**]

	ETDEX-20-N-5-SUP 5x weekly, 20L
	[**]
	[**]

	ETDEX-25-N-5-SUP 5x weekly, 25L
	[**]
	[**]

	ETDEX-30-N-5-SUP 5x weekly, 30L
	[**]
	[**]

E)  Customer shall receive itemized [**] invoices from NxStage, indicating the amount of Product provided at [**] rates during the Program, to enable Customer to satisfy its reporting obligations relating to the Product [**] received hereunder, as described above.

F)   For each Program patient (i) that Customer trains on its in-center dialysis floor, (ii) whose physician prescribes more frequent therapy with the NxStage System One after completing the Program, and (iii) who remains on more frequent therapy with the NxStage System One for an additional [**] from the end of the Program, NxStage will [**] within [**] days after Customer notifies NxStage that the criteria above has been met. For the sake of clarity, NxStage will not [**] with respect to a particular patient if Customer used any unused Product available at its center for the Program for such patient to minimize any Product deliveries required from NxStage during the Program.

2.  TERM OF PROGRAM
The Program will be available to Customer during the term of the Agreement; provided that the parties agree that each individual patient may only participate in the Program for up to five (5) days and no longer.    

In the event that the Agreement terminates during the course of one or more patients’ therapy pursuant to the Program, the parties agree that the Program shall be extended (on the terms and conditions set forth in this Schedule F) solely to enable such in-progress therapy to be completed.  In no event shall Customer enroll any additional patients in the Program during such time.

3.  CONDITIONS FOR PRODUCT AVAILABILITY AND PROGRAM PARTICIPATION
As a condition to Customer’s participation in the Program, Customer agrees to:

•advise each patient seeking to participate in the Program that (i) to qualify for Program participation such patient must first consult with his/her physician for a determination as to whether dialysis with the NxStage System One is medically appropriate for him/her, and (ii) his/her physician must prescribe this form of therapy for the period of one week during the Program; and
•advise each patient who qualifies for the Program whether and how billing by the Customer for dialysis during the one week trial provided as part of the Program will differ from billing for his/her current/existing dialysis regimen.

4.  OTHER
Customer will provide the clinical support, training, and ongoing therapy expertise to support Program patients.Converted by EDGARwiz

THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 

Principal Amount:

$70,000

Date:  April 7, 2014

  

DEBT CONVERSION AGREEMENT

PARTIES

Company

Endurance Exploration Group Inc.

15500 Roosevelt Blvd., Suite 301

Clearwater, FL  33760

Holder

Island Capital Management, LLC

15500 Roosevelt Blvd., Suite 301

Clearwater, FL  33760

RECITALS

Island Capital Management, LLC (“Holder”) has loaned Endurance Exploration Group Inc.

A.

. (“Company”) $70,000 USD (the “Debt”). 

B.

Accordingly, as of April 7, 2014, the total amount due to Holder is $70,000 USD.

C.

The Company and the Holder have agreed that the Company should repay the Debt by means of conversion of the debt into equity of the Company pursuant to the terms of this Agreement.

AGREEMENTS

Therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

A.

The Company is a corporation duly organized and existing under, and by virtue of, the laws of the State of Nevada and is in good standing under such laws. The Company has requisite corporate power and authority to own and operate its properties and assets, and to carry on its business as presently conducted and as proposed to be conducted.

B.

The Company has all requisite legal and corporate power and authority to execute and deliver this agreement, and to issue shares of Stock of the Company (the “Stock”) upon conversion of the amounts due under the Debt and to carry out and perform its obligations under the terms of this Agreement.

C.

As of the Date, the authorized capital stock of the Company consists of 110,000,000 shares of capital stock consisting of 100,000,000 shares of Stock, par value $0.01 per share, of which 35,770,947 shares are issued and outstanding, and 10,000,000 shares of  preferred stock, par value $0.001 per share, of which there are NO shares are outstanding. There are also 13,333 

Page 1 of 10

shares issuable.  The outstanding shares have been duly authorized and validly issued, and are fully paid and nonassessable. 

D.

All corporate action on the part of the Company, its Holder and shareholders necessary for the authorization, execution, delivery and performance of this Agreement by the Company, the authorization, issuance and delivery of the Shares (as defined below) and the performance of all of the Company's obligations hereunder has been taken or will be taken concurrent herewith. This Agreement, when executed and delivered by the Company, shall constitute a valid and binding obligation of the Company, enforceable in accordance with its terms. The Shares, when issued in compliance with the provisions of this Agreement, will be validly issued, fully paid and nonassessable. The Shares will be subject to restrictions on transfer under state and/or federal securities laws, unless the Holder obtains a legal opinion stating the Shares are to be issued without restriction.

1.

ARTICLE I.  CONVERSION RIGHTS

1.1.

Conversion Right.  The Holder shall have the right from time to time to convert all or any part of the Debt into fully paid and non- assessable shares of Stock, as such Stock exists on the Date of this Debt Conversion Agreement, or any shares of capital stock or other securities of the Company into which such Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”).  The number of shares of Stock to be issued upon the conversion of the Debt shall be determined by multiplying the Conversion Amount (as defined below) by the Conversion Price (as defined in paragraph 1.2 below). The term “Conversion Amount” means, with respect to any conversion of this Debt, the amount the Holder elects to convert. 

1.2.

Conversion Price

1.2.1.

The conversion factor (the “Conversion Factor”) shall be 4 shares per dollar converted.  

1.2.2.

In the event of a change in authorized capital and a corresponding change in issued and outstanding shares, the Conversion Factor shall be increased or decreased in proportion to the increase or decrease in authorized shares.

1.3.

 Authorized Shares.  

1.3.1.

The Company covenants that during the period the conversion right exists, the Company will reserve from its authorized and unissued Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Stock upon the full conversion of this Debt.  The Company represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.  In addition, if the Company shall issue any securities or make any change to its capital structure which would change the number of shares of Stock into which the Debts shall be convertible at the Conversion Price, the Company shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Debts.

1.3.2.

If, at any time a Holder of this Debt submits a Notice of Conversion, and the Company does not have sufficient authorized but unissued shares of Stock available to effect such conversion in accordance with the provisions of this Article I (a “Conversion Default”), the Company shall issue to the Holder all of the shares of Stock which are then available to effect such conversion.  The portion of this Debt which the Holder included in its Conversion Notice and which exceeds the amount which is then convertible into available shares of Stock (the “Excess Amount”) shall, notwithstanding anything to the contrary contained herein, not be convertible into Stock in accordance with the terms hereof until (and at the Holder’s option at any time after) the date additional shares of Stock are authorized by the Company to permit such conversion.

1.4.

Method of Conversion

1.4.1.

Mechanics of Conversion.  Subject to Section 1.1, this Debt may be converted by the Holder in whole or in part at any time following the date of this Debt Agreement, by (A) submitting to the Company the form attached hereto as 

Page 2 of 10

Exhibit A (the “Notice of Conversion”) (by facsimile or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., Clearwater, Florida time) and (B) subject to Section 1.4.2, surrendering the underlying debt purchase agreements at the principal office of the Company

1.4.2.

Surrender of Debt Purchase Agreements Upon Conversion.  Notwithstanding anything to the contrary set forth herein, upon conversion of the Debt in accordance with the terms hereof, the Holder shall not be required to physically surrender all the Debt Purchase Agreements to the Company unless the entire unpaid principal amount of the Debt is so converted.  The Holder and the Company shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of Debt Purchase Agreements upon each such conversion.  In the event of any dispute or discrepancy, such records of the Company shall, prima facie, be controlling and determinative in the absence of manifest error.  The Holder and any assignee, by acceptance of this Debt Conversion Agreement, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Debt, the unpaid and unconverted principal amount of the Debt represented by this Debt Conversion Agreement may be less than the amount stated on the face hereof.

1.4.3.

Payment of Taxes.  The Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Stock or other securities or property on conversion of this Debt in a name other than that of the Holder (or in street name), and the Company shall not be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Company the amount of any such tax or shall have established to the satisfaction of the Company that such tax has been paid

1.4.4.

Delivery of Stock Upon Conversion.  Upon receipt by the Company from the Holder of a facsimile transmission (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Company shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder the Stock issuable upon such conversion within three (3) business days after such receipt in accordance with the terms hereof.

1.4.5.

Obligation of Company to Deliver Stock.  Upon receipt by the Company of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Debt shall be reduced to reflect such conversion, and, unless the Company defaults on its obligations under this Article I, all rights with respect to the portion of this Debt being so converted shall forthwith terminate except the right to receive the Stock or other securities, cash or other assets, as herein provided, on such conversion.  If the Holder shall have given a Notice of Conversion as provided herein, the Company’s obligation to issue and deliver the Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Company to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Company, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with such conversion.  The Conversion Date specified in the Notice of Conversion shall be 

Page 3 of 10

the Conversion Date so long as the Notice of Conversion is received by the Company before 6:00 p.m., EST.

1.4.6.

Delivery of Stock by Electronic Transfer.  In lieu of delivering physical certificates representing the Stock issuable upon conversion, provided the Company’s transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Company shall use its best efforts to cause its transfer agent to electronically transmit the Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system or other electronic transfer service. 

1.5.

Concerning the Shares.  

1.5.1.

The shares of Stock issuable upon conversion of this Debt may not be sold or transferred unless  (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Company or its transfer agent shall have been furnished with an opinion of  counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Company who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5. Until such time as the shares of Stock issuable upon conversion of this Debt have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Stock issuable upon conversion of this Debt that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 

1.5.2.

The legend set forth above shall be removed and the Company shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Stock may be made without registration under the Act and the shares are so sold or transferred, (ii) such 

Page 4 of 10

Holder provides the Company or its transfer agent with reasonable assurances that the Stock issuable upon conversion of this Debt can be sold pursuant to Rule 144 or (iii) in the case of the Stock issuable upon conversion of this Debt, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold.

1.6.

Effect of Certain Events

1.6.1.

Effect of Merger, Consolidation, Etc.  At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Company, the effectuation by the Company of a transaction or series of related transactions in which more than 50% of the voting power of the Company is disposed of, or the consolidation, merger or other business combination of the Company with or into any other Person (as defined below) or Persons when the Company is not the survivor shall either:  (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Company shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6.2 hereof.  “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

1.6.2.

Adjustment Due to Merger, Consolidation, Etc.  If, at any time when this Debt is issued and outstanding and prior to conversion of all of the Debt, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Stock of the Company shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Company or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Company other than in connection with a plan of complete liquidation of the Company, then the Holder of this Debt shall thereafter have the right to receive upon conversion of this Debt, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Debt been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Debt to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Debt) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof.  The Company shall not affect any transaction described in this Section 1.6.2 unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Debt) and (b) the resulting successor or acquiring entity (if not the Company) assumes by written instrument the obligations of this Section 1.6.2.  The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

1.6.3.

Adjustment Due to Distribution.  If the Company shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Company’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Debt shall be entitled, upon any conversion 

Page 5 of 10

of this Debt after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Stock issuable upon such conversion had such Holder been the holder of such shares of Stock on the record date for the determination of shareholders entitled to such Distribution.

1.6.4.

Purchase Rights.  If, at any time when any Debt is outstanding, the Company issues any convertible securities or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the record holders of any class of Stock, then the Holder of this Debt will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Stock acquirable upon complete conversion of this Debt (without regard to any limitations on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the date as of which the record holders of Stock are to be determined for the grant, issue or sale of such Purchase Rights.

1.6.5.

Notice of Adjustments.  Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Company, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based.  The Company shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment and (ii) the number of shares of Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Debt.

1.7.

Status as Shareholder.  Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed the authorized share amount) shall be deemed converted into shares of Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Debt shall cease and terminate, excepting only the right to receive certificates for such shares of Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Company to comply with the terms  of this Debt.

2.

ARTICLE II.  CERTAIN COVENANTS

2.1.

Distributions on Capital Stock.  So long as the Company shall have any obligation under this Debt, the Company shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Stock solely in the form of additional shares of Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Company’s disinterested directors

2.2.

Restriction on Stock Repurchases.  So long as the Company shall have any obligation under this Debt, the Company shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Company or any warrants, rights or options to purchase or acquire any such shares.

2.3.

Borrowings.  So long as the Company shall have any obligation under this Debt, the Company shall not, without the Holder’s written consent, create, incur, assume or suffer to exist any liability for borrowed money, except (a) borrowings in existence or committed on the date hereof and of which the Company has informed Holder in writing prior to the date hereof, (b) indebtedness to trade creditors or financial institutions incurred in the ordinary course of business or (c) borrowings, the proceeds of which shall be used to repay this Debt.

Page 6 of 10

2.4.

Sale of Assets.  So long as the Company shall have any obligation under this Debt, the Company shall not, without the Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business.  Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

2.5.

Advances and Loans.  So long as the Company shall have any obligation under this Debt, the Company shall not, without the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Company, except loans, credits or advances (a) in existence or committed on the date hereof and which the Company has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.

2.6.

Contingent Liabilities.  So long as the Company shall have any obligation under this Debt, the Company shall not, without the Holder’s written consent, which shall not be unreasonably withheld, assume, guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection and except assumptions, guarantees, endorsements and contingencies (a) in existence or committed on the date hereof and which the Company has informed Holder in writing prior to the date hereof, and (b) similar transactions in the ordinary course of business

3.

ARTICLE III.  EVENTS OF DEFAULT

If any of the following events of default (each, an “Event of Default”) shall occur:

3.1.

Conversion and the Shares.  The Company fails to issue shares of Stock to the Holder (or announces or threatens that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Debt, fails to transfer or cause its transfer agent to transfer (electronically or in certificated form) any certificate for shares of Stock issued to the Holder upon conversion of or otherwise pursuant to this Debt as and when required by this Debt, or fails to remove any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Stock issued to the Holder upon conversion of or otherwise pursuant to this Debt as and when required by this Debt (or makes any announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) days after the Company shall have been notified thereof in writing by the Holder;

3.2.

Breach of Covenants.  The Company breaches any material covenant or other material term or condition contained in this Debt and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Company from the Holder;

3.3.

Breach of Representations and Warranties.  Any representation or warranty of the Company made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Debt or the Purchase Agreement;

3.4.

Receiver or Trustee.  The Company or any subsidiary of the Company shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed;

3.5.

Judgments.  Any money judgment, writ or similar process shall be entered or filed against the Company or any subsidiary of the Company or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld;

Page 7 of 10

3.6.

Bankruptcy.  Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company or any subsidiary of the Company;

3.7.

Failure to Comply with the Exchange Act.  The Company shall fail to comply with the reporting requirements of the Exchange Act; and/or the Company shall cease to be subject to the reporting requirements of the Exchange Act;

3.8.

Liquidation. Any dissolution, liquidation, or winding up of Company or any substantial portion of its business.

3.9.

Cessation of Operations. Any cessation of operations by Company or Company admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Company’s ability to continue as a “going concern” shall not be an admission that the Company cannot pay its debts as they become due.

3.10.

Maintenance of Assets. The failure by Company to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

4.

ARTICLE IV. MISCELLANEOUS 

4.1.

Failure or Indulgence Not Waiver.  No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges.  All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

4.2.

Notices.  All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth above or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be as stated under “Parties” above.

4.3.

Amendments.  This Debt Conversion Agreement and any provision hereof may only be amended by an instrument in writing signed by the Company and the Holder.  The term “Debt Conversion Agreement” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

4.4.

Assignability.  This Debt shall be binding upon the Company and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns.  Each transferee of this Debt must be an “accredited investor” (as defined in Rule 501(a) of the 1933 Act).  Notwithstanding anything in this Debt to the contrary, this Debt may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

4.5.

Governing Law.  This Agreement shall be governed in all respects by the internal laws of the State of Nevada.

4.6.

Notice of Corporate Events.  Except as otherwise provided below, the Holder of this Debt shall have no rights as a Holder of Stock unless and only to the extent that it converts this Debt into Stock. 

Page 8 of 10

4.7.

Remedies.  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby.  Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Debt will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Debt, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Debt and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required

4.8.

Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

This Agreement may be executed in one or more counterparts and by transmission of a facsimile or digital image containing the signature of an authorized person, each of which shall be deemed and accepted as an original, and all of which together shall constitute a single instrument. Each party represents and warrants that the person executing on behalf of such party has been duly authorized to execute this Agreement.

The foregoing Agreement is hereby executed as of the date first above written.

			
	COMPANY

	 
	HOLDER

	Endurance Exploration Group Inc.

	 
	Endeavour Cooperative Partners LLC

	By: /s/ Micah Eldred

	 
	By:  /s/ Micah Eldred

	Micah Eldred, President

	 
	 Micah Eldred, President

Page 9 of 10

EXHIBIT A

NOTICE OF CONVERSION

The undersigned hereby irrevocably elects to convert $70,000 principal amount of the Debt (defined below) into shares of Stock,  $0.01 par value per share (“Stock”), of Endurance Exploration Corp., a Nevada corporation (the “Company”) according to the conditions of the Debt Conversion Agreement of the Company dated as of April 7, 2014 (the “DCA”), as of the date written below. 

If securities are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates.  No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.  A copy of the DCA is attached hereto (or evidence of loss, theft or destruction thereof). 

The Company shall electronically transmit the Stock issuable pursuant to this Notice of Conversion (which number is based on the Holder’s calculation attached hereto) to the account of the undersigned or its nominee with Island Stock Transfer. 

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable to the undersigned upon conversion of the Debt shall be made pursuant to registration of the securities under the Securities Act of 1933, as amended (the “Act”), or pursuant to an exemption from registration under the Act. 

		
	Date of Conversion:

	 

	Conversion Price:

	$0.25 PER SHARE

	Number of shares of Stock to be issued pursuant to the conversion of $70,000 of the debt:

	280,000

	Signature:

	/s/ Micah Eldred

	Name:

	Micah Eldred

	Address:

	 

Page 10 of 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}]]