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Exhibit 10.21

MANUFACTURING AND SUPPLY AGREEMENT

     THIS MANUFACTURING AND SUPPLY AGREEMENT (the “Agreement”) shall be effective on the 1st day of July, 2008 (the “Effective Date”) by and between:

 

 

 

 

 

LifeVantage Corporation

 

and

 

CornerStone Research & Development, Inc.

6400 South Fiddler’s Green Circle

 

 

 

218 South 200 West, P.O. Box 617

Suite 1970

 

 

 

Farmington, Utah 84025

Greenwood Village, CO 80111

 

 

 

(“Manufacturer”)

(Customer)

 

 

 

 

Customer and Manufacturer are sometimes hereinafter referred to as “Party” or “Parties.”

RECITALS:

A.

 

Customer is in the business of marketing nutritional products;

 

B.

 

Manufacturer is in the business of manufacturing, packaging, and supplying nutritional products.

 

C.

 

Customer and Manufacturer mutually desire that Manufacturer will manufacture, package, and supply defined products listed on Schedule 1 and that Customer will purchase defined Products (as hereinafter listed as defined products in Section 1) in accordance with the terms and conditions of this Agreement.

AGREEMENT

NOW, THEREFORE, for and in consideration of the promises and agreements that follow, the Parties agree as follows:

 

1

 

DEFINED TERMS . As used in this Agreement:

 

1.1

 

Affiliate shall mean any Person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, another Person.

 

 

1.2

 

Control shall mean the right to exercise, directly or indirectly, the power to direct or materially influence the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise.

 

 

1.3

 

Confidential Information shall include any formulae, revisions of formulae, know-how, processes and methods, business plans, financial data, product development plans,

1


 

 

 

 

marketing plans and strategies, distributor lists, supplier lists, customer lists, vendor lists, manufacturing methodologies, research data, and similar information of either Customer or Manufacturer that are valuable, special, unique and proprietary assets of either Customer or Manufacturer.

 

 

1.4

 

Dollars or $ shall mean the legal tender of the United States of America.

 

 

1.5

 

Person shall mean an individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated organization, or other entity.

 

 

1.6

 

Product(s) shall mean those Products specified on Schedule 1, as said schedule may be amended from time to time as provided herein.

 

 

1.7

 

Specifications shall mean the specifications set forth in Manufacturer’s “Master Formula” form for each Product, as agreed upon in writing by both Parties and as amended from time to time.

 

 

1.8

 

Third Party shall mean any Person who is not a Party to this Agreement.

 

 

1.9

 

Trademarks shall mean those trademarks and the trade names, distinctive package and label designs, electronic and printed promotional and advertising materials, and all other communications belonging to Customer used in connection with its business.

 

2

 

TRADEMARKS .

 

 

2.1

 

Manufacturer will use (and has the limited right to use) the Trademarks of Customer in conjunction with packaging and labeling. The Products will be packaged under Customer’s label and Trademarks.

 

 

2.2

 

This Agreement shall not be construed to give Manufacturer any vested right, title, or interest in any of the Trademarks or copyrighted material of Customer except to the extent and in the manner, time, and places Manufacturer is authorized and permitted under this Agreement to use the Trademarks.

 

3

 

TERM . Subject to other provisions of this Agreement, the term of this Agreement is two (2) years, commencing on the Effective Date. Thereafter, the term shall continue year by year until and unless either Party gives written notice of termination to the other Party at least 120 days prior to the end of the then current term.

 

 

4

 

PURCHASE .

 

 

4.1

 

Customer shall order and purchase the Products (see schedule 1) on an exclusive basis from Manufacturer. Customer shall provide purchase orders to Manufacturer for the purchase of Products. Schedule 1 lists me Products, price and the minimum order quantities which must be ordered on purchase orders. A purchase order will not be considered a valid order until Manufacturer receives a hard copy or facsimile- transmitted copy and until Manufacturer accepts the purchase order in writing. The terms and conditions of this Agreement shall supersede any inconsistent terms contained in any purchase order, order acknowledgement, packing slip, or invoice.

 

 

4.2

 

Except for price modifications under Section 4.2.1 below, pricing for the Products, shown on Schedule 1, shall remain firm for the initial 12 months of this Agreement:

2


 

 

4.2.1

 

Manufacturer may increase or decrease prices at any time during the term of this Agreement to compensate Manufacturer for increases in the cost of raw materials or components. However, except in the case of price increases resulting from an extraordinary increase in raw materials or components, price changes under this Section 4.2.1 shall not exceed plus or minus 5% of the then current pricing. If Manufacturer experiences what it considers to be an extraordinary increase in raw materials, then Manufacturer shall give written notice that Manufacturer believes that a price increase in excess of the 5% limitation is justified, whereupon the parties will negotiate pricing modifications, in good faith.

 

4.3

 

Payment terms will be net 30 days. All past-due invoice balances shall bear interest at the rate of 1.5% per month until paid in full. If at any time Customer is in default with respect to any of its obligations under this Agreement, or Customer is insolvent or the subject of an insolvency or bankruptcy proceeding, then in addition to its other rights and remedies hereunder for breach Manufacturer may suspend all production and shipment.

 

 

4.4

 

The Products will be manufactured, tested, and delivered, in accordance with agreed upon Specifications. Any changes


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