Document:

NET TALK.COM, INC.

 

6% Secured Promissory Note

 

	$3,000,000	December 31, 2013
	 	(“Effective Date”)

 

FOR VALUE RECEIVED,
the undersigned, NET TALK.COM, INC., a Florida corporation, having its
principal place of business at 1080 NW 163 Drive, Miami, Florida 33169 (herein called the “Company”)
hereby promises to pay to VICIS CAPITAL MASTER FUND, or registered assigns (collectively, the “Holder”),
the principal sum of THREE MILLION DOLLARS ($3,000,000), together with applicable interest thereon. CERTAIN CAPITALIZED AND OTHER
TERMS USED IN THIS NOTE ARE DEFINED IN SCHEDULE A HERETO.

 

1.            Method
and Place of Payment. Payments of principal and interest shall be made in lawful money of the United States of America at the
address of the Holder for notices specified below, or at such other location as the Holder may hereafter designate.

 

2.            Maturity
Date. The entire principal amount of this note (the “Note”) together with all accrued, unpaid interest
shall be payable in full on June 30, 2014 (the “Initial Maturity Date”); provided, however,
the maturity date may be extended by the Company to June 30, 2015 (the “First Extended Maturity Date”)
if all interest accruing during the period from the Effective Date to the Initial Maturity Date is paid prior to June 30, 2014
and may be extended again by the Company to June 30, 2016 (the “Second Extended Maturity Date”) if all
interest accruing through the First Extended Maturity Date is paid prior to June 30, 2015.

 

3.            Interest
Rate. Interest on the principal amount (or any balance thereof) outstanding from time to time under this Note shall begin to
accrue on the Effective Date and shall accrue at a fixed rate per year equal to six percent (6.00%); provided, however,
interest shall accrue at a fixed rate per year equal to nine percent (9.0%) during the period from the Initial Maturity Date to
the First Extended Maturity Date, if extended, and interest shall accrue at a fixed rate per year equal to twelve percent (12.0%)
during the period from the First Extended Maturity Date to the Second Extended Maturity Date, if further extended (in each case,
computed on the basis of a 360-day year) (the “Interest Rate”).

 

4.            Principal
and Interest Payments.

 

a.           Principal
and Interest Payments. The entire principal amount of this Note, together with interest accruing thereon at the Interest Rate,
shall be payable in one lump sum payment on the Initial Maturity Date, First Extened Maturity Date or Second Extended Maturity
Date, as applicable.

 

b.           Overdue
Principal and Interest. The Company will pay interest on overdue principal and, to the extent lawful, interest at a rate per
annum of 18%.

 

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c.           Maximum
Amount of Interest. Nothing herein, nor any transaction related hereto, shall be construed to operate so as to require the
Company to pay interest at a greater rate than shall be lawful. Should any interest or other charges paid by the Company in connection
with the loan evidenced by this Note result in computation or earning of interest in excess of the maximum contract rate of interest
which is legally permitted under applicable law or federal preemption statute, then any and all such excess is hereby waived by
the Holder and shall be automatically credited against and in reduction of the balance due hereunder, and any portion which exceeds
such balance shall be paid by the Holder to the Company. Anything contained herein to the contrary notwithstanding, if for any
reason the effective rate of interest on this Note should exceed the maximum lawful rate, then the effective rate shall be deemed
reduced to and shall be such maximum lawful rate.

 

d.           Prepayment.
This Note may be prepaid in whole or in part at any time without penalty.

 

5.            Financial
Statements and Other Reports. Commencing on the Effective Date, the Company shall cause to be prepared and made available
to the Holder of this Note:

 

a.           Quarterly
Financial Statements. Unless timely filed by the Company with the Securities and Exchange Commission on EDGAR, within forty-five
(45) days after the end of each quarterly fiscal period (except the last) of each fiscal year, an unaudited consolidated balance
sheet of the Company and its Significant Subsidiaries as of the close of such quarterly period and unaudited consolidated statements
of income, cash flows and stockholders’ equity for the quarterly period then ended and that portion of the fiscal year then
ended, all in reasonable detail prepared by the Company in accordance with GAAP (except for the absence of footnotes and subject
to normal year-end adjustments) applicable to quarterly financial statements generally.

 

b.           Annual
Financial Statements. Unless timely filed by the Company with the Securities and Exchange Commission on EDGAR, within ninety
(90) days after the end of each fiscal year, an audited consolidated balance sheet of the Company and its Significant Subsidiaries
as of the close of such fiscal year and audited consolidated statements of income, cash flows and stockholders’ equity for
the fiscal year then ended, including the notes thereto, all in reasonable detail and in comparative form the corresponding figures
for the preceding fiscal year, prepared by an independent certified public accounting firm selected by the Board, in accordance
with GAAP.

 

c.           Notices.
The Company shall make available to the Holder of this Note reasonably promptly (but in no event later than ten (10) Business Days
after such request) information relating to the occurrence of any of the following since such Holder’s last request: (i)
the commencement of any proceedings or investigations by or before any Governmental Authority and any actions or proceedings in
any court or before any arbitrator against or involving the Company or any of its Significant Subsidiaries or any of their respective
properties, assets or businesses, in each case involving a claim or liability which would reasonably be expected to have a Material
Adverse Effect, (ii) any attachment, judgment, levy or order assessed against the Company that would reasonably be expected to
have a Material Adverse Effect, (iii) any default or event of default under any material Indebtedness of the Company that would
reasonably be expected to have a Material Adverse Effect.

 

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6.            Covenants

 

		a.	Affirmative Covenants. Unless otherwise consented to in
writing by the Holder of this Note, the Company hereby covenants and agrees that, it will, and will cause each of its Significant
Subsidiaries to:

 

		i.	Preservation of Corporate Existence and Related Matters. Preserve and maintain its separate
corporate existence and all material rights, franchises, licenses, permits and privileges sufficient for the conduct of its business,
except as would not have a Material Adverse Effect; and qualify and remain qualified as a domestic corporation authorized to do
business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification
or authorization, except in each case to the extent that the failure to be or remain so qualified would not have a Material Adverse
Effect.

 

		ii.	Maintenance of Property. Protect and preserve all material properties necessary to its business,
including tangible and intangible assets; maintain in good working order and condition (ordinary wear and tear excepted) all buildings,
equipment and other tangible real and personal property necessary and material to its business; and from time to time make or cause
to be made all renewals, replacements and additions to such property necessary for the conduct of its business so that the business
carried on in connection therewith may be properly conducted at all times, except in each case to the extent that the failure to
do so would not have a Material Adverse Effect.

 

		iii.	Maintenance of Insurance. Maintain insurance, including directors’ and officers’
liability insurance, with responsible insurance companies against such risks and in such amounts as are customarily maintained
by similar businesses in similar industries, except in each case as would not have a Material Adverse Effect.

 

		iv.	Payment of Taxes and Governmental Charges. Pay all taxes, assessments and other governmental
charges that may be levied or assessed upon it or any of its property (including, without limitation, withholding, social security,
payroll and similar employment related taxes on the dates such taxes are due); provided, that the Company may contest such
taxes, assessments and other governmental charges in good faith so long as adequate reserves are maintained with respect thereto
in accordance with GAAP, and except in each case as would not have a Material Adverse Effect.

 

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		v.	Accounting Methods; Financial Records. Maintain a system of accounting, and keep such books,
records and accounts sufficient to permit the preparation of financial statements in accordance with GAAP consistently applied
and in compliance with the regulations of any Governmental Authority having jurisdiction over it or any of its properties, except
in each case as would not have a Material Adverse Effect.

 

		vi.	Compliance With Laws. Observe and remain in compliance with all laws and maintain in full
force and effect all approvals of Governmental Authorities (including state insurance regulatory bodies), in each case applicable
or necessary to the conduct of its business except where the failure to do so would not result in a Material Adverse Effect and
except that the Company or such Subsidiary may contest the applicability of any law in good faith so long as adequate reserves
are maintained with respect thereto in accordance with GAAP.

 

		vii.	Visits and Inspections. Permit representatives of the Holder of this Note, from time to
time, as often as may be reasonably requested, but only during normal business hours and upon reasonable prior notice, to visit
and inspect its properties; inspect, audit and make extracts from its books, records and files, including, but not limited to,
management letters prepared by independent accountants; and discuss with its principal officers and its independent accountants,
its business, assets, liabilities, financial condition, results of operations and business prospects, in each case subject to customary
confidentiality agreements and provided that in no event will any such visits, inspections, audits or discussions unreasonably
interfere with the business operations of the Company.

 

		b.	Negative Covenants. As long as any portion of
this Note remains outstanding, unless the Holder shall otherwise consent in writing, the Company shall not, and shall not permit
any of its subsidiaries to, directly or indirectly:

 

		i.	other than Permitted Senior Indebtedness,
enter into, create, incur, assume, guarantee or suffer to exist any Indebtedness for borrowed money of any kind, including but
not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom, that is or purports to rank senior to or pari passu with the Note in any respect,
whether with respect to right of payment of redemptions, interest, damages upon liquidation or dissolution, or otherwise;

 

		ii.	amend its charter documents, including without limitation, the certificate of incorporation and
bylaws, in any manner that materially and adversely affects any rights of the Holder;

 

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		iii.	repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis
number of shares of its common stock or common stock equivalents other than as to repurchases of common stock or common stock equivalents
of departing officers and directors of the Company, provided that such repurchases shall not exceed an aggregate of $100,000 for
all officers and directors during the term of this Note;

 

		iv.	none of the officers, directors or other Affiliates of the Company shall enter into any transaction
with the Company or any Subsidiary (other than for services as employees, officers and directors), including entering into any
contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer, director or other affiliates or any entity in which
any officer, director, or other affiliates has a substantial interest or is an officer, director, trustee or partner;

 

		v.	on an annualized basis, none of the officers of the Company or a subsidiary therof shall receive
an increase in salary or bonus in excess of 15% of the prior year’s salary or bonus, as applicable; provided that the foregoing
restriction shall not apply to the extent inconsistent with that certain employment agreement between the Company and Mr. Anastasios
Kyriakides as in effect as of the Effective Date;

 

		vi.	sell, transfer, lease or otherwise dispose of 20% or more of its consolidated assets (as shown
on the most recent financial statements of the Company or the subsidiary, as the case may be) in any single transaction or series
of related transactions (other than the sale of inventory in the ordinary course of business), or liquidate, dissolve, recapitalize
or reorganize in any form of transaction;

 

		vii.	enter into any agreement with respect to any of the foregoing; or

 

		viii.	pay cash dividends or distributions on
any equity securities of the Company or purchase, redeem or otherwise acquire for value, directly or indirectly, any security
issued by Company, except as may be required by the terms of such security..

 

7.            Subordination.

 

a.           Special
Definitions. The following terms have the following meanings for the purposes of this Section 7.

 

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i.            “Permitted
Senior Indebtedness” means Indebtedness of the Company that satisfies each of the following conditions: (x) the Company
provides written notice to Holder no less than (10) days prior to incurring the Indebtedness, which such notice shall (i) advise
Holder that the Company intends to borrow funds that will be senior pursuant to this Section 7, and (ii) attach a commitment letter
describing the material terms of the Indebtedness, (y) the Indebtedness shall arise from borrowed money which is borrowed after
the date hereof and relates solely to the financing of the Company’s accounts receivable and/or inventor, and the proceeds
from the Indebtedness shall be used for working capital for the Company, and (z) no Affiliate of the Company shall hold the Permitted
Senior Indebtedness, when created or at any time thereafter.

 

ii.         
“Maximum Amount of Permitted Senior Indebtedness” means $4,000,000.

 

b.            Notwithstanding
anything to the contrary herein, the Company covenants and agrees, and any holder, whether holding this Note upon original issue
or upon transfer, assignment or exchange hereof, by accepting this Note likewise covenants and agrees, that the indebtedness evidenced
by this Note shall be subordinate and junior in right of payment, preference and priority to the Permitted Senior Indebtedness
of the Company; provided, if the total Permitted Senior Indebtedness (including, without limitation, principal, interest,
premiums and fees) exceeds the Maximum Amount of Permitted Senior Indebtedness, then such excess shall be subordinate and junior
in right of payment, preference and priority to the indebtedness evidenced by this Note.         

 

c.           In
the event of any insolvency or bankruptcy proceedings, or any receivership, liquidation, reorganization or other similar proceedings
in connection therewith, relative to the Company, or to its creditors, as such, or to its property, or in the event of any proceedings
for voluntary liquidation, dissolution or other winding up of the Company, whether or not involving insolvency or bankruptcy, then
the Holders of Permitted Senior Indebtedness (up to the Maximum Amount of Permitted Senior Indebtedness) shall be entitled to receive
payment in full in cash of the principal of and the premium (if any) and interest on all Permitted Senior Indebtedness (up to the
Maximum Amount of Permitted Senior Indebtedness) before the Holder shall be entitled to be paid, directly or indirectly, with respect
to the principal of or interest on the Note.

 

d.           No
cash payment of or on account of any principal of or interest on the Note shall be made if, at the time of such payment or immediately
after giving effect thereto, there shall be due and unpaid (whether at the stated maturity thereof, by acceleration, or otherwise)
any principal of or premium (if any) or interest on any Permitted Senior Indebtedness. Notwithstanding anything to the contrary,
this Section 7 shall not prohibit the Holder of this Note from declaring this Note in default, accelerating the principal of this
Note, and otherwise pursuing its available remedies, including taking actions to repossess, foreclose or realize upon the property
comprising collateral; or act as a petitioning creditor in any bankruptcy proceeding filed against the Company, but all subject
to the priority of payments and expressed in Section 7(a) and (b) above.

 

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e.           In
the event that, notwithstanding the foregoing provisions, any payment or distribution shall be made as to the Note which, in accordance
with this Section 7 was required to be paid or distributed to the Holder of Permitted Senior Indebtedness, such payment or distribution
shall be held in trust for and paid over or delivered to the Holder of Permitted Senior Indebtedness, as their respective interests
may appear, for application to the payment of the Permitted Senior Indebtedness remaining unpaid to the extent necessary to pay
in full in cash the principal of and the premium (if any) and accrued interest (including penalty interest) on such Permitted Senior
Indebtedness (up to the Maximum Permitted Senior Indebtedness) in accordance with its terms, after giving effect to any concurrent
payment or distribution to the Holder of the Permitted Senior Indebtedness.

 

f.            The
foregoing subordination provisions shall be for the benefit of the Holder of Permitted Senior Indebtedness from time to time outstanding,
and the Holder of Permitted Senior Indebtedness may proceed to enforce such provisions either directly against any Holder of this
Note.

 

g.           The
Holder of Permitted Senior Indebtedness may at any time and from time to time and in its absolute discretion, change the manner,
terms or place of payment, change or extend the time of payment of, or renew or alter, any Permitted Senior Indebtedness or amend
or supplement any agreement pursuant to which any Permitted Senior Indebtedness is issued, or may exercise or refrain from exercising
any rights against the Company and others (including any holder), all without notice to or assent from any Holder of this Note;
provided, however, the Permitted Senior Indebtedness as amended, modified, revised, changed or renewed shall be subject
to, and comply with, each of the restrictions in this Section 7. The provisions of this Section 7 shall be binding upon any Holder
of this Note and its heirs, legal representatives, successors and assigns.

 

8.          Events
of Default. An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

 

a.           the
Company defaults in the payment of any principal on this Note when the same becomes due and payable;

 

b.           the
Company defaults in the payment of any interest on this Note for more than ten (10) days after the same becomes due and payable;

 

c.           the
Company defaults in the performance of or compliance with any other term contained herein, or the Company defaults under any other
agreement that Company has entered into with Holder, and such default is not remedied (if able to be remedied) within thirty (30)
days after the Company receives written notice of such default from the Holder of this Note (any such written notice to be identified
as a “notice of default” and to refer specifically to this Section 8(c)) or after the Company has become or should
have become aware of such failure;

 

d.           the
Company defaults on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement, factoring
agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness
for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater than
$500,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or
being declared due and payable prior to the date on which it would otherwise become due and payable;

 

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e.           any
monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary thereof, or any
of their respective property or other assets for more than $300,000, and such judgment, writ or similar final process shall remain
unvacated, unbonded or unstayed for a period of forty-five (45) calendar days;

 

f.            the
Company or any Significant Subsidiary (i) files, or consents by answer or otherwise to the filing against it of, a petition for
relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy,
insolvency, reorganization, moratorium or other similar law of any jurisdiction, (ii) makes an assignment for the benefit of its
creditors, (iii) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect
to it or with respect to any substantial part of its property, or (iv) is adjudicated as insolvent or to be liquidated; or

 

g.           a
court or Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any Significant
Subsidiary, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial
part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition
in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the
dissolution, winding-up or liquidation of the Company or such Significant Subsidiary, or any such petition shall be filed against
the Company or such Significant Subsidiary and such petition shall not be dismissed within sixty (60) days.

 

9.          Remedies
on Default, Etc. If any Event of Default has occurred and is continuing, then the entire obligation of the Company under this
Note shall be in default without notice or any opportunity to cure (such notice and opportunity to cure being hereby expressly
waived), the unpaid principal and interest balances shall be immediately due and payable and interest on the principal balance
shall thereafter accrue at the maximum annual rate allowable by law. In addition to the right to declare the total unpaid principal
balance and all accrued but unpaid interest payable under this Note to be due and payable in full in advance of the Maturity Date,
upon the occurrence of an Event of Default under this Note, the Holder has and may exercise all other rights and remedies available
by law, statute, agreement or in equity.

 

10.         Collection.
Should it become necessary to collect this Note through an attorney, Company shall pay all costs incurred by or accruing to the
Holder in making such collection, including reasonable attorney’s fees. Reasonable attorney’s fees shall include, without
limitation, all fees incurred in all matters of collection and enforcement, construction and interpretation, before, during and
after trial proceedings and appeals, as well as appearances in, and connected with, any bankruptcy proceeding or creditors’
reorganization or similar proceeding.

 

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11.         Waiver.
The Company and any guarantor, surety, or endorser of this Note, as well as any other person or entity who shall become liable
for the payment hereof, each, jointly and severally, expressly waives presentment for payment, notice of non-payment, protest,
and notice of protest, and any other notice which might otherwise be required in connection with the delivery, acceptance, performance,
default, or enforcement of the payment of this Note. The Holder shall not be deemed by any act or omission to have waived any right
or remedy hereunder unless and only to the extent expressed in a written instrument dated subsequent to the date hereof and executed
by the Holder, and any such waiver so expressed with respect to a particular event shall not be interpreted as having a continuing
effect on or as a waiver of any right or remedy with respect to any subsequent event.

 

12.         Notices.
All notices or other communications required or permitted to be given pursuant to this Note shall be in writing and shall be considered
properly given or made if hand delivered, mailed from within the United States by certified mail, or sent by email:

 

		a.	if to the Holder:

 

Vicis Capital, LLC

445 Park Avenue, Suite 1043

New York, New York 10022

Attn: Shad Stastney

 

b.if to the Company:

 

NET TALK.COM, INC.

1100 NW 163 Drive

Miami, Florida 33169

Attn:

 

or to such other address
as either party shall have furnished to the other. All notices, except of change of address, shall be deemed given when mailed,
and notices of change of address shall be deemed given when received.

 

13.         Entire
Agreement; Severability; Time. This Note constitutes the entire understanding of the parties with respect to the subject matter
hereof, and no amendment, modification, or alteration of the terms hereof shall be binding unless the same be in writing dated
subsequent to the date hereof and duly approved and executed by the Company and the Holder. In the event any provision of this
Note is prohibited or invalid under applicable law, that provision shall be ineffective to the extent of such prohibition or invalidity
without invalidating the remainder of this Note. Time is of the essence of this Note.

 

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14.         Governing
Law; Venue. The validity, construction, enforcement and interpretation of this Note shall be governed by the substantive laws
of the State of New York, without application of its conflicts of law principles, and the United States of America. Each party
agrees that it will bring any action or proceeding in respect of any claim arising out of or related to this Note exclusively in
the United States District Court sitting in the Southern District of New York and the courts of the State of New York located in
New York County (the “New York Courts”), and, solely in connection with claims arising under this Note, (i)
irrevocably submits to the exclusive jurisdiction of the New York Courts; (ii) waives any objection to laying venue in any such
action or proceeding in the New York Courts; (iii) waives any objection that the New York Courts are an inconvenient forum or do
not have jurisdiction over any party; and (iv) agrees that service of process upon such party in any such action or proceeding
will be effective if notice is given in accordance with Section 12.

 

15.         Successors
and Assigns. This Note shall bind the Company and its successors, and permitted assigns, and the benefits of this Note shall
inure to the benefit of the Holder and his or her successors and assigns, including any Holder of this Note. Notwithstanding the
foregoing, the Company shall not assign the Company’s rights or obligations under this Note without the Holder’s prior
written consent. All references in this Note to the Company or the Holder include their respective successors and assigns. Holder
may transfer and assign this Note upon written notice to the Company except to competitors as defined in paragraph 16 below.

 

16.         Secured
Obligation. The obligations of the Company under this Note are secured by all assets of the Company pursuant to that certain
Fourth Amended and Restated Security Agreement, dated as of December 31, 2013, by and between
the Company and the Secured Party (as defined therein), as may be amended or amended and restated from time to time.

IN WITNESS WHEREOF,
the undersigned have caused this 6% Promissory Note to be duly executed and delivered as of the day and year first above written.

 

	 	Company:
	 	 
	 	NET TALK.COM, INC., a Florida corporation,
	 	 	 
	 	By:	/s/Anastasios Kyriakides
	 	Name:	ANASTASIOS KYRIAKIDES
	 	Its:	PRESIDENT & CEO

  

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Schedule A

 

Defined
Terms

 

As used herein, the
following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 

“Affiliate”
means (i) any other Person controlling, controlled by or under common control with such Person; and (ii) as used in this definition
of the term “Affiliate”, “control” (including the terms “controlled by” and “under common
control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management
policies of a Person, whether through the ownership of voting securities, by voting trust, contract or similar arrangement, as
trustee or executor or otherwise.

 

“Business
Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required
or authorized to be closed.

 

“Company”
is defined in the first paragraph of this Note.

 

“Default”
means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both,
become an Event of Default.

 

“Event of
Default” is defined in Section 8.

 

“GAAP”
means generally accepted accounting principles as in effect from time to time in the United States of America.

 

“Governmental
Authority” means the government of the United States of America or any State or other political subdivision thereof,
or any other jurisdiction in which the Company or any subsidiary conducts all or any part of its business, or which asserts jurisdiction
over any properties of the Company or any subsidiary, or any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

 

“Holder of
Permitted Senior Indebtedness” means any Person that holds the Permitted Senior Indebtedness or the trustee for, or other
authorized representative of, such Person.

 

“Indebtedness”
means, with respect to any Person, (i) any indebtedness, contingent or otherwise, in respect of borrowed money, including indebtedness
in respect of borrowed money evidenced by bonds, notes, debentures or similar instruments, (ii) letters of credit or (iii) indebtedness
representing the balance deferred and unpaid of the purchase price of any property (including pursuant to financing leases), regardless
of whether any of the foregoing indebtedness would appear as a liability upon a balance sheet of such Person prepared on a consolidated
basis in accordance with GAAP and regardless of whether or not the recourse of the lender is to the whole of the assets of such
Person or only to a portion thereof.

 

“Interest
Rate” is defined in Section 3.

 

    	Schedule A - 1

    	 

    

 

“Material
Adverse Effect” means any change in or effect on the business of the Company and its subsidiaries or the Company’s
and its subsidiaries’ assets or properties that, individually or in the aggregate (taking into account all other such changes
or effects), is, or is reasonably likely to be, materially adverse to the business, assets, liabilities, financial condition or
results of operations of the Company taken as a whole.

 

“Maturity
Date” is defined in Section 2.

 

“Maximum Amount
of Permitted Senior Indebtedness” is defined in Section 7.

 

“New York
Courts” is defined in Section 14.

 

“Person”
means an individual, partnership (limited or general), corporation, joint venture, limited liability company, association, trust,
business trust, unincorporated organization or business entity.

 

“Permitted
Senior Indebtedness” is defined in Section 7.

 

“Significant
Subsidiary” means, in respect of any Person, a subsidiary of such Person that would constitute a “significant
subsidiary” as such term is defined under Rule 1-02 of Regulation S-X under the Securities Act and the Exchange Act. 

 

    	Schedule A - 2PODD-EX10.1_2014.01.24

Exhibit 10.1

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Exchange Act — [ . . . *** . . . ] denotes omissions.

SETTLEMENT AND CROSS LICENSE AGREEMENT

This Settlement and Cross License Agreement (hereinafter, the “Agreement”), effective as of September 18, 2013 (hereinafter, the “Effective Date”), is made by and among Insulet Corporation, a Delaware corporation having its principal office at 9 Oak Park Dr., Bedford, MA, 01730 (hereinafter, “Insulet”), Medtronic Inc., a Minnesota corporation having its principal office at 710 Medtronic Parkway, Minneapolis, MN 55432-5604 (hereinafter, “Medtronic”), Medtronic MiniMed Inc., a Delaware corporation having its principal office at 18000 Devonshire Street, Northridge, CA 91325 (hereinafter, “MiniMed”), Medtronic Puerto Rico Operations Co., a corporation organized under the laws of the Cayman Islands (hereinafter, “MPROC”), and MiniMed Distribution Corp., a Delaware corporation having its principal office at 18000 Devonshire Street, Northridge, CA 91325 (hereinafter “MDC”). Insulet, Medtronic, MiniMed, MPROC and MDC are each hereinafter referred to individually as a “Party”, and collectively as the “Parties”.
RECITALS

WHEREAS, MiniMed, MDC and MPROC (collectively hereinafter, “Plaintiffs”), have sued Insulet in the United States District Court, Central District of California, under case number “2:12-CV-8048-PA-CWx” and the Parties wish to settle the lawsuit;

WHEREAS, Insulet and MiniMed have each developed are developing, have patented and expect to patent, certain technology relating to diabetes care;

WHEREAS, Insulet and Medtronic intend to (i) resolve and avoid certain blocking situations and patent infringement litigation and (ii) enable each other to develop and market independently from each other existing, improved and/or new and innovative products; and

WHEREAS, each of the Parties wishes to enter into this Agreement under which the parties will cross-license certain technology in the design, development and sale of certain products relating to diabetes care, in accordance with the terms and conditions hereinafter provided.

NOW, THEREFORE, in consideration of the promises and agreements set forth herein and other valuable consideration, the Parties, each intending to be bound, agree as follows:
		
	1.
	DEFINITIONS

All references to Articles and Sections, if any, shall be references to Articles and Sections of this Agreement. In addition, except as otherwise expressly provided herein, the following terms in this Agreement shall have the meanings set forth below:

1.1    “Affiliate” of an entity shall mean, on or after the Effective Date,

		
	(a)
	an organization, which directly or indirectly controls such entity;

		
	(b)
	an organization, which is directly or indirectly controlled by such entity;

		
	(c)
	an organization, which is controlled, directly or indirectly, by the ultimate parent company of such entity.

Control as per (a) to (c) is defined as owning more than fifty percent of the voting stock of a company or having otherwise the power to govern the financial and the operating policies or to appoint the management of an organization.

1.2    “Closed-Loop” means a system comprising an insulin pump and CGM in which adjustments are ultimately made to insulin delivery without any action by a human.

1.3    “Continuous Glucose Monitoring” or “CGM” means a device that is designed to measure glucose levels, and which automatically records or reports glucose values in regular increments of no more than five (5) minutes.

1.4    “Control” or “Controlled” means, with respect to any Patents, the ability of a Party (whether by ownership, license or otherwise) to grant access to, to grant use of, or to grant a license or a sublicense of or under such Patents without violating the terms of any agreement or other arrangement with any Third Party. 

1.5    “Infringement Litigation” means the lawsuit in the United States District Court, Central District of California, under case number “2:12-CV-8048-PA-CWx”.

1.6    “Insulet Claims” mean any claims within any Patent Controlled by Insulet.

1.7    “MiniMed Claims” mean any claims within any Patent Controlled by MiniMed.

1.8    “Patent” shall mean any U.S. or foreign patent or patent application, and any related divisionals, continuations, continuations-in-part, renewals, reissues, re-examinations and extensions of the foregoing (as and to the extent applicable), in all cases now existing and hereafter filed, issued, in-licensed, acquired or expired.

1.9    “Party” or “Parties” has the meaning set forth in the Preamble.

1.10    “Third Party” means any entity other than the Parties and their respective Affiliates.
		
	2.
	LICENSE AND SETTLEMENT

2.1    License Grant to Insulet.  Subject to the terms and conditions of this Agreement and to the extent legally permissible under applicable anti-trust laws, Plaintiffs hereby grant Insulet a non-exclusive, fully paid-up, worldwide right and license to (a) United States Patent No. 6,551,276; United States Patent No. 7,109,878; and all family members of such Patents, including such family’s non-U.S. Patents and Patents issued after the Effective Date; (b) MiniMed Claims covering use of nitinol to effect the delivery of a fluid via an ambulatory external pump; and (c) MiniMed Claims covering integration and/or interaction of CGM with other medical devices, including without limitation, insulin delivery devices or systems (the “Insulet License”).  

		
	2.1.1
	The Insulet License shall not extend to any MiniMed Claims that alone, or in combination with the Insulet License, cover Closed-Loop implementation, functionality, design and/or algorithms.

		
	2.1.2
	The Insulet License shall not include the right to assign or grant sublicenses, other than to Affiliates, sellers of Insulet products or “have-made” licenses solely for Insulet sales or distribution.

		
	2.1.3
	MiniMed represents and warrants that if MiniMed makes any future transfer of MiniMed Claims covered by the Insulet License, such transfer shall be subject to the Insulet License. 

		
	2.1.4
	MiniMed further represents and warrants that, as of the Effective Date, MiniMed has not transferred any MiniMed Patents to a non-practicing entity. 

2.2    License Grant to Medtronic.  Subject to the terms and conditions of this Agreement and to the extent legally permissible under applicable anti-trust laws, Insulet hereby grants Medtronic a non-exclusive, fully paid-up, worldwide right and license to (a) Insulet Claims covering use of nitinol to effect the delivery of a fluid via an ambulatory external pump; (b) Insulet Claims covering automatic insertion of a needle, cannula, and/or sensor; and (c) Insulet Claims covering integration and/or interaction of two or more of the following: ambulatory external drug delivery pumps; blood glucose monitoring devices; infusions sets; and/or insertion devices (the “Medtronic License”).  

		
	2.2.1
	The Medtronic License shall not include the right to assign or grant sublicenses, other than to Affiliates, sellers of Medtronic products or “have-made” licenses solely for Medtronic sales or distribution.

		
	2.2.2
	Notwithstanding the foregoing, nothing in the Medtronic License confers any rights to Medtronic to use, sell, offer to sell, manufacture, or import a one-piece ambulatory external drug delivery pump which adheres to the body, has no controls on the pump itself, is operated via a hand-held remote, and is disposed of in its entirety after use.

		
	2.2.3
	Medtronic agrees that it will not cause or ask Flextronics International Ltd. or one of its Affiliates to design or manufacture a one-piece ambulatory external drug delivery pump that adheres to the body. 

		
	2.2.4
	Insulet represents and warrants that if Insulet makes any future transfer of Insulet Claims covered by the Medtronic License, such transfer shall be subject to the Medtronic License.

		
	2.2.5
	Insulet further represents and warrants that, as of the Effective Date, Insulet has not transferred any Insulet Patents to a non-practicing entity. 

2.3    Settlement.  Within two (2) business days of MiniMed’s receipt of the Payment (defined below), the Plaintiffs and Insulet shall file a joint motion to dismiss all claims and counterclaims in the Infringement Litigation with prejudice.  Each Party shall bear its own attorneys’ fees and costs.  
		
	3.
	REMUNERATION

3.1    One Time Payment.  Insulet shall pay MiniMed a non-refundable amount of 
 
[ . . . *** . . . ] no later than October 21, 2013 (the “Payment”).  The Payment shall be made by wire transfer to MiniMed as follows:

Payments to MiniMed shall be made to the following account held by MiniMed with full discharge of Insulet:

[ . . . *** . . . ]
		
	4.
	CO-DEVELOPMENT

4.1    MiniMed and Insulet agree to work in good faith and with a reasonable time frame to discuss and attempt to negotiate a co-development and distribution arrangement whereby Insulet would develop a version of a CGM augmented insulin pump using the Insulet OmniPod System and the MiniMed CGM.
		
	5.
	TERM

5.1    Term.  This Agreement shall commence on the Effective Date and continue to be effective until the expiration of the last MiniMed Claim included in the Insulet License and the last Insulet Claim included in the Medtronic License (the “Term”).  
		
	6.
	CHANGE OF CONTROL AND COVENANTS

6.1    Change of Control.  If a controlling interest or substantially all of the assets of the business unit or entity of either MiniMed or Insulet is acquired by or sold to a Third Party, the non-exclusive license transfers to the acquiring Third Party.  Notwithstanding the foregoing, if MiniMed or Insulet is acquired by a Third Party, and such Third Party is then in the business of manufacturing, marketing and/or distributing ambulatory external insulin pumps, then the non-exclusive license granted to such Party under Article 2 shall immediately terminate.  

6.2    Covenant Not to Sue.  Each Party hereby covenants that it will not bring a lawsuit or cause of action against, or directly or indirectly challenge, or otherwise voluntarily assist a Third Party in any way to challenge, any other Party or any of its Affiliates, manufacturers, distributors or customers, in any venue or in any manner, for patent infringement based on the making, having made, selling, offering to sell, using or importing of any existing product, or any feature, element, component and/or existing combination thereof, as any of them exist in any existing commercially available products as of the Effective Date.  

6.3    Surviving Covenant. MiniMed and Insulet represent and warrant that if either MiniMed or Insulet makes any future transfer of a Patent otherwise covered by the covenant defined in Section 6.2, such transfer shall be made subject to the obligations stated in Section 6.2.  
		
	7.
	REPRESENTATIONS AND WARRANTIES 

7.1    Medtronic hereby represents and warrants to Insulet, itself and on behalf of each of the Plaintiffs, as follows:
		
	7.1.1
	Medtronic, Inc. is a corporation validly existing and in good standing under the laws of the State of Minnesota.  Medtronic MiniMed, Inc. and MiniMed Distribution Corp. are each corporations validly existing and in good standing under the laws of the State of Delaware. Medtronic Puerto Rico Operations Co. is a corporation validly existing and in good standing under the laws of the Cayman Islands.  Medtronic, MiniMed, MDC and MPROC each has all requisite power and authority to enter into this Agreement, to grant the Insulet License, to otherwise carry out the transactions and perform its obligations as contemplated hereby;

		
	7.1.2 
	This Agreement has been duly authorized, executed and delivered by each of Medtronic, MiniMed, MDC and MPROC and constitutes a legal, valid and binding obligation of each of Medtronic, MiniMed, MDC and MPROC, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the rights of creditors’ generally;

		
	7.1.3
	The execution and delivery by each of Medtronic, MiniMed, MDC and MPROC of this Agreement, the consummation of the transactions contemplated hereby and the performance by Medtronic, MiniMed, MDC and MPROC of their respective obligations hereunder, including, without limitation, the grant of the Insulet License, will not conflict with, violate or constitute a breach of, or constitute a default under, any agreement, instrument, judgment, order or requirement of law or governmental rule to which Medtronic, MiniMed, MDC or MPROC is presently a party or by which any of them is presently bound;

		
	7.1.4
	MiniMed is the sole owner of the MiniMed Claims covered by the Insulet License, and such claims are free and clear of all liens, claims, encumbrances, and interests of any kind that would have the effect of waiving or diminishing the Insulet License; and

		
	7.1.5
	None of Medtronic, MiniMed, MDC or MPROC has taken or omitted to take any action which would have the effect of waiving or diminishing the Insulet License.

		
	7.2 
	Insulet hereby represents and warrants as follows:

		
	7.2.1
	Insulet is a corporation validly existing and in good standing under the laws of Delaware and Insulet has all requisite power and authority to enter into this Agreement, to grant the Medtronic License, to otherwise carry out the transactions and perform its obligations as contemplated hereby;

		
	7.2.2
	This Agreement has been duly authorized, executed and delivered by Insulet and constitutes a legal, valid and binding obligation of Insulet enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the rights of creditors’ generally;

		
	7.2.3
	The execution and delivery by Insulet of this Agreement, the consummation of the transactions contemplated hereby and the performance by Insulet of its obligations hereunder, including, without limitation, the grant of the Medtronic License will not conflict with, violate or constitute a breach of, or constitute a default under, any agreement, instrument, judgment, order or requirement of law or governmental rule to which Insulet is presently a party or by which it is presently bound;

		
	7.2.4
	Insulet is the sole owner of the Insulet Claims covered by the Medtronic License, and such claims are free and clear of all liens, claims, encumbrances, and interests of any kind that would have the effect of waiving or diminishing the Medtronic License; and 

		
	7.2.5
	Insulet has not taken or omitted to take any action which would have the effect of waiving or diminishing the Medtronic License.

		
	8.
	MAINTENANCE AND ENFORCEMENT OF LICENSED PATENTS

8.1    Maintenance.  During the Term MiniMed shall have the sole responsibility to prosecute, defend and maintain, at its sole discretion and expense, the MiniMed Patents, without an accounting to Insulet and Insulet shall have the sole responsibility to prosecute, defend and maintain, at its sole discretion and expense, the Insulet Patents, without an accounting to Medtronic, MiniMed, MDC or MPROC.

8.2    Enforcement.  Neither Medtronic nor Insulet, as licensee, shall have any obligation or duty to notify the other of any Third Party claim or other Third Party activity relating to any MiniMed Claims or Insulet Claims covered by the Insulet License or Medtronic License, as applicable. Under no circumstances shall Medtronic, a Plaintiff or any of their respective Affiliates have an obligation or a right to enforce the Insulet Claims against any Third Party, nor shall Insulet or any of its Affiliates have an obligation or a right to enforce the MiniMed Claims against any Third Party.
		
	9.
	CONFIDENTIALITY

9.1    Confidentiality.  The terms of this Agreement shall be maintained in strict confidence by the Parties, except to the extent required by law including, for clarity, the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).  Any Party may disclose the fact that the Infringement Litigation has been settled.  Notwithstanding anything in this Agreement, the Parties agree that if disclosure is required pursuant to SEC regulations, the disclosing Party shall use diligent efforts to limit disclosures, obtain confidential treatment and provide prompt notice of such disclosure to the other Party.  Once such disclosures have been made pursuant to SEC regulations, the Parties agree that information and/or terms made in the disclosure shall no longer be confidential information as defined by this Section 9.

9.2    Notwithstanding the foregoing, Insulet acknowledges and agrees that the contents of this Agreement will be disclosed by Medtronic [ . . . *** . . . ].  Medtronic will ensure that such disclosure shall be done pursuant to the highest confidentiality designation under the associated protective order (e.g. OUTSIDE ATTORNEYS’ EYES ONLY).  
		
	10.
	DISPUTE RESOLUTION

10.1    Except in the event that a Party shall reasonably determine that it must seek a preliminary injunction, temporary restraining order or other provisional relief, upon the occurrence of a dispute between the Parties, including, without limitation, any breach of this Agreement or any obligation relating thereto, such matter shall be referred to the President of MiniMed and the President of Insulet, or their designees.  The Presidents, or their designees, as the case may be, shall negotiate in good faith to resolve such dispute in a mutually satisfactory manner for thirty (30) days, or such longer period of time to which the Presidents may agree.  If such efforts do not result in mutually satisfactory resolution of the dispute, then, in the event of a dispute other than a material breach, the Parties may (but are not required to) attempt to resolve the dispute as provided below.  In the event of a material breach, the Parties shall attempt to resolve the dispute as provided below:   
10.2     Each Party with a proposal for resolution of the matter (a "Proposing Party") shall prepare a brief (a "Brief") which includes a summary of the issue, its proposed resolution of the issue and considerations in support of such proposed resolution;
10.3    Not later than ten (10) business days following notice by a Party requesting the dispute resolution procedure provided in this Section 10, such Briefs shall be submitted to a reputable and experienced mediation service 

mutually selected by the Parties (the "Mediator").  If the Parties cannot agree on a Mediator, each Party shall select one (1) mediator and those two (2) mediators will mutually select the Mediator.  Both Parties shall equally share the cost of the Mediator.  All other costs shall be borne by the Party incurring them;
10.4    During a period of twenty (20) business days, the Mediator and the Parties shall diligently attempt to reach a resolution of the dispute;
10.5    In the event that after such twenty (20) business day period the Parties are still unable to reach resolution of the dispute, the Mediator shall provide the Parties with a  proposed resolution in written form within the following five (5) business days.  The proposed resolution of the Mediator shall not be binding on the Parties.  Such proposed resolution shall be implemented by the Parties only with the consent to the Parties.    
10.6    To the extent permitted by applicable law, all statutes of limitations and defenses based on the passage of time shall be tolled while any such negotiations are pending.  The Parties shall take whatever action may be necessary and reasonable to effectuate such tolling.
10.7    In the event that the Parties determine not to implement the proposed resolution of the Mediator, after a ten (10) business day "cooling off" period, determined from the date that the Parties receive a proposed resolution from the Mediator, either Party may pursue any available remedies at law or in equity.
		
	11.
	RELEASES

11.1    Plaintiffs’ Release.  Subject to MiniMed’s receipt of the Payment and as of the Effective Date, the Plaintiffs hereby fully, finally, and forever release and discharge Insulet and its Affiliates, and its customers, distributors and manufacturers (but only with respect to such customer’s, distributor’s and manufacturer’s use, sale or manufacture of Insulet products), directors, officers, managers and employees from any and all patent infringement claims, which Plaintiffs asserted or could have asserted in the Infringement Litigation. 

11.2.    Insulet Release.  Subject to MiniMed’s receipt of the Payment and as of the Effective Date, Insulet hereby fully, finally, and forever releases and discharges Plaintiffs and their Affiliates, and Plaintiffs’ customers, distributors and manufacturers (but only with respect to such customer’s, distributor’s and manufacturer’s use, sale or manufacture of Plaintiffs’ products) directors, officers, managers and employees from any and all patent infringement claims, which Insulet asserted or could have asserted in the Infringement Litigation. 
		
	12.
	MISCELLANEOUS

12.1    Assignment.  This Agreement may not be assigned by a Party without the prior written consent of the other Parties.  Any successor or assignee shall assume all obligations of its predecessor or assignor, as applicable, under this Agreement. No assignment shall relieve a Party of responsibility for the performance of any accrued obligation that the Party has hereunder. 

12.2    Entire Agreement.  This Agreement constitutes the entire agreement between the Parties hereto with respect to the within subject matter and supersedes all previous agreements directed to such subject matter whether written or oral. This Agreement may not be changed or modified orally except by an instrument in writing signed by all Parties.

12.3    Severability.  Should any part or provision of this Agreement be held unenforceable, invalid or illegal, the validity of the remaining part or provisions shall not be affected by such holdings. In such case, the Parties shall agree without delay on a valid substitute term which shall approximate as closely as possible the purpose of the invalid or unenforceable term.

12.4    Notices.  All notices hereunder shall be in writing and shall be delivered personally, mailed by overnight delivery, registered or certified mail, postage prepaid, mailed by express mail service or given by facsimile, to the following addresses of the respective Parties:

If to Medtronic:                  Medtronic MiniMed, Inc.
Attention: Vice President and Chief Counsel
18000 Devonshire Street
Northridge, CA 91325
Facsimile: 818-576-6228 

Copy to:                             Medtronic Inc.
Attention: Senior Vice President, General Counsel and Secretary
710 Medtronic Parkway
Minneapolis, MN 55432
Facsimile: (763) 572-5459

If to Insulet:                        Insulet Corporation
Attention: President
9 Oak Park Dr
Bedford, MA 01730
Facsimile: (781)  357-5011

Copy to:                              Insulet Corporation
Attention: General Counsel
9 Oak Park Dr
Bedford, MA 01730
Facsimile: (781) 357-4281

Notices shall be effective upon receipt if personally delivered, on the third business day following the date of mailing if sent by certified or registered mail, and on the second business day following the date of delivery to the express mail service if sent by express mail, or the date of transmission if sent by facsimile. A Party may change its address listed above by written notice to the other Parties.

12.5    Choice of Law.  The validity, performance, construction, and effect of this Agreement and any disputes, claims or controversies arising out of or in connection with this Agreement shall be governed by the laws of the State of Delaware, without reference to choice or conflict of law rules otherwise applicable.

12.6    No Third Party Beneficiaries.  Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the Parties hereto or their respective successors or assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

12.7    Waiver.  None of the terms, covenants and conditions of this Agreement can be waived except by the prior written consent of the Party waiving compliance therewith. Failure by either Party to enforce any rights under this Agreement shall not be construed as a waiver of such rights, nor shall a waiver by either Party in one or more instances be construed as constituting a continuing waiver or as a waiver in other instances.

12.8    Force Majeure.  No Party shall be responsible to the other Parties for failure or delay in performing any of its obligations under this Agreement or for other non-performance hereof provided that such delay or non-performance is occasioned by a cause beyond the reasonable control and without fault or negligence of such Party, including, but not limited to earthquake, fire, flood, explosion, discontinuity in the supply of power, court order or governmental interference, act of God, strike or other labor trouble and provided that such Party will inform the other Party as soon as is reasonably practicable and that it will entirely perform its obligations immediately after the relevant cause of the Force Majeure has ceased its effect.

12.9    Publicity.  No Party shall make any public announcement concerning the transactions contemplated herein, or to make any public statement which includes the name of the other Party(ies) or any of its (or their) Affiliates, or otherwise use the name of the other Party(ies) or any of its (or their) Affiliates in any public statement or document, except as may be 

required by law or judicial order or rule of a relevant stock exchange (and then only following 48-hour prior written notice to the other Party(ies)).

12.10    Headings; Definitions.  The captions used herein are inserted for convenience of reference only and shall not be construed to create obligations, benefits, or limitations.  With respect to defined terms, the singular shall include the plural and the masculine gender shall include the feminine and the neuter, and vice versa, as the context requires.

12.11    Counterparts.  This Agreement may be executed in counterparts, all of which taken together shall be regarded as one and the same instrument.

12.12    Independence.  Unless otherwise described herein, nothing contained in this Agreement shall be construed as creating a partnership, joint venture or agency or employment relationship between any of the Parties.  In the performance of this Agreement, each Party shall act as an independent contractor to the other.  Neither Party shall have any authority or power to contract or in any manner incur liability, retrospectively or prospectively, of any kind or nature for or in the name of the other Party or for which the other Party could or might be held liable to Third Parties.

12.13    Further Actions.  Each Party shall execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

12.14    Survival.  The rights and obligations of the Parties contained in the following Articles and Sections (and related definitions) shall expressly survive the expiration of this Agreement: 6.2, 6.3, 9, 10, 11, 12.3-12.5, 12.9 and 12.14.

[Signature page follows]

IN WITNESS WHEREOF, and intending to be bound, the Parties hereto have duly executed this Agreement by their duly authorized representatives as of the Effective Date:

MEDTRONIC, INC.

By:    /s/ Gary L. Ellis    
Name:  Gary L. Ellis
Title:  Senior Vice President and Chief Financial Officer

MEDTRONIC MINIMED, INC.

By:   /s/ Gary L. Ellis    
Name: Gary L. Ellis
Title:  Vice President and Chief Financial Officer

MINIMED DISTRIBUTION CORP.

By:   /s/ Gary L. Ellis    
Name: Gary L. Ellis
Title:  Vice President and Chief Financial Officer

MEDTRONIC PUERTO RICO OPERATIONS CO.

By:   /s/ Gary L. Ellis    
Name:  Gary L. Ellis
Title:  Vice President and Chief Financial Officer

INSULET CORPORATION

By:    /s/ Duane DeSisto    
Name: Duane DeSisto
Title:   President and CEO

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