Fedex Signs Agreement with CryoPort
On January 3, 2013, CryoPort, Inc. -CYRX.OB- (the “Registrant”) entered into a master agreement (“Agreement”) with Federal Express Corporation (“FedEx”). Pursuant to the Agreement, the Registrant will provide to FedEx frozen shipping logistics services through the combination of its purpose built proprietary technologies and turnkey management processes. The Cryoport Express® liquid nitrogen dry vapor shippers, validated to maintain a constant -150°C temperature for a 10 plus day dynamic shipment duration, and Cryoportal™ Logistics Management Platform which manages the entire shipment process, are included.
Under the Agreement, FedEx has the right to and shall, on a non-exclusive basis and at its sole expense, promote, market and sell transportation of Registrant’s services and Registrant’s related value-added goods and service for frozen temperature-controlled cold chain transportation, such as Registrant’s data monitoring and recording capabilities. All services shall be processed through the CryoportalTM.
Pursuant to the Agreement, FedEx has agreed to pay Registrant (i) a fixed transaction fee, the amount of which will depend upon whether the service is provided within a specific designated region or from one designated region to another designated region, and (ii) additional fees for any other goods or services ordered in connection with such service transaction. Under the Agreement, there is no minimum requirement of FedEx during the term of the Agreement.
The Agreement covers a non-exclusive license and right for FedEx to use a customized version of the Cryoportal for the management of shipments made by FedEx’s customers. Under the Agreement, Registrant will develop and provide related maintenance and technical support for such customized version of the Cryoportal.
The Agreement is effective on January 1, 2013 and, unless sooner terminated as provided in the Agreement, the term of the Agreement expires on December 31, 2015. The Agreement contains customary representations, warranties and indemnification obligations.
A copy of the January 3, 2013 Agreement is attached hereto as Exhibit 10.1, incorporated herein by reference and hereby filed.
