Exhibit 10.4
MANUFACTURING SUPPLY AGREEMENT
This Manufacturing Supply Agreement (as may be amended, restated, supplemented or otherwise modified in accordance with Article XXVI, this “Agreement”) is made and entered into as of February 2, 2021 (the “Effective Date”), by and between Mohawk Group, Inc. (“Buyer”), a Delaware corporation, with a place of business at 37 E 18th St., 7th Floor, NY, NY 10003 and Healing Solutions, LLC (“Supplier”), a Delaware limited liability company, with offices located at 4703 W. Brill St., Suite 101, Phoenix, AZ, 85043. Supplier and Buyer are sometimes individually referred to herein as a “Party” and are collectively referred to as the “Parties”. Capitalized terms used herein but not defined herein shall have the meanings ascribed to them in the Purchase Agreement (as defined below).
RECITALS
WHEREAS, on the Effective Date, (i) Mohawk Group Holdings, Inc., a Delaware corporation (“Parent”) and Truweo, LLC, a Delaware limited liability company and wholly owned subsidiary of Parent (together in their capacity as Purchaser thereunder), (ii) Supplier (in its capacity as Seller thereunder), and (iii) Jason R. Hope and (iv) Super Transcontinental Holdings, LLC, a Delaware limited liability company, as the sole voting member of Seller, entered into that certain Asset Purchase Agreement (the “Purchase Agreement”), pursuant to which Purchaser (as defined in the Purchase Agreement) acquired and assumed (either directly or indirectly through one or more Purchaser Designees (as defined in the Purchase Agreement)) from Seller, all of the Acquired Assets and the Assumed Liabilities, respectively;
WHEREAS, following the Closing, Supplier will remain engaged in the Retained Business; and
WHEREAS, from and after the Closing, Buyer desires that Seller manufacture and supply certain Products (as defined below) to Buyer, and Buyer desires to purchase such Products from Seller, on a temporary basis pursuant to the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the undertakings of the Parties set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties agree as follows:
ARTICLE I.
MANUFACTURE AND SALES OF PRODUCTS.
1.1. Products; Forecasts. Supplier shall manufacture and supply to Buyer the products listed on Exhibit A (the “Products”), pursuant to the terms and conditions set forth in this Agreement. On the 15th day of each month during the Term, Buyer shall provide Supplier with a rolling forecast of its anticipated requirements for the Products for the following month, set out by Product and in the case of each Product in an amount not less than the minimum quantity set forth for such Product in Exhibit A (the “Forecast”). If timely requested by Buyer, Supplier shall use commercially reasonable efforts to manufacture or supply to Buyer in any particular month more than 100% of Buyer’s Forecast for the applicable month, but Supplier shall have no liability for failure to manufacture or supply any amount of Product in excess of the applicable Forecast. Buyer may order less than its Forecast with the written consent of Supplier, which consent shall not be unreasonably withheld, conditioned or delayed.