Document:

Form of Subscription Agreement

 Exhibit 10.1 
 SUBSCRIPTION AGREEMENT 
 Kosan Biosciences Incorporated 
 3832 Bay Center Place 
 Hayward, California 94545 
 Gentlemen: 
 The undersigned (the “Investor”) hereby confirms its agreement with you as follows:

 1. This Subscription Agreement (this “Agreement”) is made as of the date set forth below between Kosan Biosciences
Incorporated, a Delaware corporation (the “Company”), and the Investor. 
 2. The Company has authorized the sale and
issuance to certain investors of up to an aggregate of 7,000,000 shares (the “Shares”) of its Common Stock, par value $0.001 per share (the “Common Stock”), subject to adjustment by the Company’s Board of
Directors, or a committee thereof, for a purchase price of $6.50 per share (the “Purchase Price”). 
 3. The offering
and sale of the Shares (the “Offering”) are being made pursuant to (1) an effective Registration Statement on Form S-3 (including the Prospectus contained therein (the “Base Prospectus”), the
“Registration Statement”) filed by the Company with the Securities and Exchange Commission (the “Commission”), (2) if applicable, certain “free writing prospectuses” (as that term is defined in Rule
405 under the Securities Act of 1933, as amended), that have or will be filed with the Commission and delivered to the Investor on or prior to the date hereof, (3) oral communication by one or more of the Placement Agents (defined below) of
offering information of the type reflected on Schedule B of the Placement Agent Agreement and (4) a Prospectus Supplement (the “Prospectus Supplement” and together with the Base Prospectus, the “Prospectus”)
containing certain supplemental information regarding the Shares and terms of the Offering that will be filed with the Commission and delivered to the Investor (or made available to the Investor by the filing by the Company of an electronic version
thereof with the Commission). 
 4. The Company and the Investor agree that the Investor will purchase from the Company and the
Company will issue and sell to the Investor the Shares set forth below for the aggregate purchase price set forth below. The Shares shall be purchased pursuant to the Terms and Conditions for Purchase of Shares attached hereto as Annex I and
incorporated herein by this reference as if fully set forth herein. The Investor acknowledges that the Offering is not being underwritten by the placement agents (the “Placement Agents”) named in the Prospectus Supplement and that
there is no minimum offering amount. 

 5. The manner of settlement of the Shares purchased by the Investor shall be
determined by such Investor as follows (check one): 
 [            ] A. DELIVERY
BY ELECTRONIC BOOK-ENTRY AT THE DEPOSITORY TRUST COMPANY (“DTC”), REGISTERED IN THE INVESTOR’S NAME AND ADDRESS AS SET FORTH BELOW, AND RELEASED BY MELLON INVESTOR SERVICES LLC, THE COMPANY’S TRANSFER AGENT
(THE “TRANSFER AGENT”), TO THE INVESTOR AT THE CLOSING (AS DEFINED IN SECTION 3.1 OF ANNEX I HERETO). NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT BY THE INVESTOR AND THE
COMPANY, THE INVESTOR SHALL: 
 (I) DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP
A DEPOSIT/WITHDRAWAL AT CUSTODIAN (“DWAC”) INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR ACCOUNTS WITH THE SHARES, AND 
 (II) REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE SHARES BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING ACCOUNT: 
  

	
	 Mellon Bank

	 ABA 043000261

	
	 F/C Mellon Investor Services LLC

	
	 F/C # 1002331

	
	 Ref: Kosan Escrow deal

	
	 Attn: Tom Wood

	
	 Tel: 201-680-3285

	

 – OR – 
 [            ] B. DELIVERY VERSUS PAYMENT (“DVP”) THROUGH DTC (I.E., THE COMPANY SHALL DELIVER SHARES REGISTERED IN THE INVESTOR’S NAME
AND ADDRESS AS SET FORTH BELOW AND RELEASED BY THE TRANSFER AGENT TO THE INVESTOR AT THE CLOSING DIRECTLY TO THE ACCOUNT(S) AT COWEN AND COMPANY, LLC (“COWEN”) IDENTIFIED BY THE INVESTOR AND SIMULTANEOUSLY THEREWITH
PAYMENT SHALL BE MADE FROM SUCH ACCOUNT(S) TO THE COMPANY THROUGH DTC). NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL: 
 (I) NOTIFY COWEN OF THE ACCOUNT OR ACCOUNTS AT COWEN TO BE CREDITED WITH THE SHARES BEING PURCHASED BY SUCH INVESTOR, AND

 (II) CONFIRM THAT THE ACCOUNT OR ACCOUNTS AT COWEN TO BE CREDITED WITH THE SHARES BEING PURCHASED BY THE INVESTOR HAVE A MINIMUM BALANCE EQUAL TO THE
AGGREGATE PURCHASE PRICE FOR THE SHARES BEING PURCHASED BY THE INVESTOR. 
  

 2 

 IT IS THE INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE TRANSFER OR CONFIRM THE PROPER ACCOUNT
BALANCE IN A TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT BY WAY OF DWAC OR DVP IN A TIMELY MANNER. IF THE INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE SHARES OR DOES NOT MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY
MANNER, THE SHARES MAY NOT BE DELIVERED AT CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING ALTOGETHER. 
 6. The Investor
represents that, except as set forth below, (a) it has had no position, office or other material relationship within the past three years with the Company or persons known to it to be affiliates of the Company, (b) it is not a NASD member
or an Associated Person (as such term is defined under the NASD Membership and Registration Rules Section 1011) as of the Closing, and (c) neither the Investor nor any group of Investors (as identified in a public filing made with the
Commission) of which the Investor is a part in connection with the Offering of the Shares, acquired, or obtained the right to acquire, 20% or more of the Common Stock (or securities convertible into or exercisable for Common Stock) or the voting
power of the Company on a post-transaction basis. Exceptions: 
  

 (If no exceptions, write “none.” If left blank, response will be deemed to be “none.”) 
 7. The Investor
represents that it has received (or otherwise had made available to it by the filing by the Company of an electronic version thereof with the Commission) the Base Prospectus, dated October 3, 2003, which is a part of the Company’s
Registration Statement, the documents incorporated by reference therein and oral communication by one or more of the Placement Agents of offering information of the type reflected on Schedule B of the Placement Agent Agreement (collectively, the
“Disclosure Package”) prior to or in connection with the receipt of this Agreement. 
 8. No offer by the Investor to buy Shares will be
accepted and no part of the Purchase Price will be delivered to the Company until the Company has accepted such offer by countersigning a copy of this Agreement, and any such offer may be withdrawn or revoked by the Investor, without obligation or
commitment of any kind, at any time prior to the Company (or the Placement Agents on behalf of the Company) sending (orally, in writing, or by electronic mail) notice of its acceptance of such offer. An indication of interest will involve no
obligation or commitment of any kind until this Agreement is accepted and countersigned by or on behalf of the Company. 
  

 - 3 - 

				
	 Number of Shares:
	  	 
	 Purchase Price Per Share:
	  	$	6.50
	 Aggregate Purchase Price:
	  	$	 

 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the
space provided below for that purpose. 
  

			
	 	  	Dated as of:
February 8,
2007
		  	INVESTOR
	 By:
	  	
	 Print Name:
	  	
	 Title:
	  	
	 Address:
	  	

 Agreed and Accepted 
 this 8th day of February, 2007: 
  

			
	 	  	KoSAN
BIOSciences
incorporated
	 By:
	  	
	 Name:
	  	
	 Title:
	  	

  

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 ANNEX I 
 TERMS AND CONDITIONS FOR PURCHASE OF SHARES 
 1. Authorization and Sale of the Shares. Subject
to the terms and conditions of this Agreement, the Company has authorized the sale of the Shares. 
  

	2.	Agreement to Sell and Purchase the Shares; Placement Agents. 

 2.1 At the Closing, the Company will sell to the Investor, and the Investor will purchase from the Company, upon the terms and conditions set forth herein, the number of Shares set forth on the last page of the Agreement to which
these Terms and Conditions for Purchase of Shares are attached as Annex I (the “Signature Page”) for the aggregate purchase price therefor set forth on the Signature Page. 
 2.2 The Company proposes to enter into substantially this same form of Subscription Agreement with certain other investors (the “Other
Investors”) and expects to complete sales of Shares to them. The Investor and the Other Investors are hereinafter sometimes collectively referred to as the “Investors,” and this Agreement and the Subscription Agreements
executed by the Other Investors are hereinafter sometimes collectively referred to as the “Agreements.” 
 2.3
Investor acknowledges that the Company has agreed to pay the placement agents (the “Placement Agents”) a fee (the “Placement Fee”) in respect of the sale of Shares to the Investor. 
 2.4 The Company is a party to that Placement Agent Agreement, dated February 8, 2007 (the “Placement Agreement”) with the
Placement Agents that contains certain representations, warranties, covenants and agreements of the Company that may be relied upon by the Investor, which shall be a third party beneficiary thereof. 
  

	3.	Closings and Delivery of the Shares and Funds. 

 3.1
Closing. The completion of the purchase and sale of the Shares (the “Closing”) shall occur at a place and time (the “Closing Date”) to be specified by the Company and the Placement Agents, and of which the
Investors will be notified in advance by the Placement Agents, in accordance with Rule 15c6-1 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). At the Closing, (a) the Company shall cause
the Transfer Agent to deliver to the Investor the number of Shares set forth on the Signature Page registered in the name of the Investor or, if so indicated on the Investor Questionnaire attached hereto as Exhibit A, in the name of a nominee
designated by the Investor and (b) the aggregate purchase price for the Shares being purchased by the Investor will be delivered by or on behalf of the Investor to the Company. 
 3.2 Conditions to the Company’s Obligations. (a) The Company’s obligation to issue and sell the Shares to the Investor shall be
subject to: (i) the receipt by the Company of the purchase price for the Shares being purchased hereunder as set forth on the Signature Page and (ii) the accuracy of the representations and warranties made by the Investor and the
fulfillment of those undertakings of the Investor to be fulfilled prior to the Closing Date. 
  

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 (b) Conditions to the Investor’s Obligations. The Investor’s obligation to purchase the
Shares will be subject to the accuracy of the representations and warranties made by the Company and the fulfillment of those undertakings of the Company to be fulfilled prior to the Closing Date, including without limitation, those contained in the
Placement Agreement, and to the condition that the Placement Agents shall not have: (a) terminated the Placement Agreement pursuant to the terms thereof or (b) determined that the conditions to the closing in the Placement Agreement have
not been satisfied. The Investor’s obligations are expressly not conditioned on the purchase by any or all of the Other Investors of the Shares that they have agreed to purchase from the Company. 
  

	3.3	Delivery of Funds. 

 (a) Delivery by Electronic
Book-Entry at The Depository Trust Company. If the Investor elects to settle the Shares purchased by such Investor through delivery by electronic book-entry at DTC, no later than one (1) business day after the execution of this
Agreement by the Investor and the Company, the Investor shall remit by wire transfer the amount of funds equal to the aggregate purchase price for the Shares being purchased by the Investor to the following account designated by the Company
and the Placement Agents pursuant to the terms of that certain Escrow Agreement (the “Escrow Agreement”) dated as of February 8, 2007, by and among the Company, Cowen and Company, LLC (“Cowen”) and Mellon Investor
Services LLC (the “Escrow Agent”): 
  

	
	 Mellon Bank

	 ABA 043000261

	
	 F/C Mellon Investor Services LLC

	
	 F/C # 1002331

	
	 Ref: Kosan Escrow deal

	
	 Attn: Tom Wood

	
	 Tel: 201-680-3285

	

 Such funds shall be held in escrow until the Closing and delivered by the Escrow Agent on behalf
of the Investors to the Company upon the satisfaction, in the sole judgment of Cowen, of the conditions set forth in Section 3.2(b) hereof. The Placement Agents shall have no rights in or to any of the escrowed funds, unless the
Placement Agents and the Escrow Agent are notified in writing by the Company in connection with the Closing that a portion of the escrowed funds shall be applied to the Placement Fee. The Company and the Investor agree to indemnify and hold the
Escrow Agent harmless from and against any and all losses, costs, damages, expenses and claims (including, without limitation, court costs and reasonable attorneys fees) (“Losses”) arising under this Section 3.3 or
otherwise with respect to the funds held in escrow pursuant hereto or arising under the Escrow Agreement, unless it is finally determined that such Losses resulted directly from the willful misconduct or gross negligence of the Escrow Agent.
Anything in this Agreement to the contrary notwithstanding, in no event shall the Escrow Agent be liable for any special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Escrow
Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 Investor shall also furnish to
the Placement Agents a completed W-9 form (or, in the case of an Investor who is not a United States citizen or resident, a W-8 form). 
 (b) Delivery Versus Payment through The Depository Trust Company. If the Investor elects to settle the Shares purchased by such Investor by delivery versus payment through 

  

 6 

 
DTC, no later than one (1) business day after the execution of this Agreement by the Investor and the Company, the Investor shall confirm
that the account or accounts at Cowen to be credited with the Shares being purchased by the Investor have a minimum balance equal to the aggregate purchase price for the Shares being purchased by the Investor. 
  

	3.4	Delivery of Shares. 

 (a) Delivery by Electronic
Book-Entry at The Depository Trust Company. If the Investor elects to settle the Shares purchased by such Investor through delivery by electronic book-entry at DTC, no later than one (1) business day after the execution of this
Agreement by the Investor and the Company, the Investor shall direct the broker-dealer at which the account or accounts to be credited with the Shares being purchased by such Investor are maintained, which broker/dealer shall be a DTC
participant, to set up a Deposit/Withdrawal at Custodian (“DWAC”) instructing Mellon Investor Services LLC, the Company’s transfer agent, to credit such account or accounts with the Shares by means of an electronic book-entry
delivery. Such DWAC shall indicate the settlement date for the deposit of the Shares, which date shall be provided to the Investor by the Placement Agents. Simultaneously with the delivery to the Company by the Escrow Agent of the funds held in
escrow pursuant to Section 3.3 above, the Company shall direct its transfer agent to credit the Investor’s account or accounts with the Shares pursuant to the information contained in the DWAC. 
 (b) Delivery Versus Payment through The Depository Trust Company. If the Investor elects to settle the Shares purchased by such Investor by
delivery versus payment through DTC, no later than one (1) business day after the execution of this Agreement by the Investor and the Company, the Investor shall notify Cowen of the account or accounts at Cowen to be credited with
the Shares being purchased by such Investor. On the Closing Date, the Company shall deliver the Shares to the Investor directly to the account(s) at Cowen identified by Investor and simultaneously therewith payment shall be made from such account(s)
to the Company through DTC. 
  

	4.	Representations, Warranties and Covenants of the Investor. 

 The Investor
represents and warrants to, and agrees with, the Company and the Placement Agent that: 
 4.1 The Investor (a) is knowledgeable,
sophisticated and experienced in making, and is qualified to make decisions with respect to, investments in shares presenting an investment decision like that involved in the purchase of the Shares, including investments in securities issued by the
Company and investments in comparable companies, (b) has answered all questions on the Signature Page and the Investor Questionnaire for use in preparation of the Prospectus Supplement and the answers thereto are true and correct as of the date
hereof and will be true and correct as of the Closing Date and (c) in connection with its decision to purchase the number of Shares set forth on the Signature Page, has received and is relying solely upon the Disclosure Package and the
documents incorporated by reference therein. 
 4.2 The Investor acknowledges that (a) no action has been or will be taken
in any jurisdiction outside the United States by the Company or the Placement Agents that would permit an offering of the Shares, or possession or distribution of offering materials in connection with the issue of the Shares in any jurisdiction
outside the United States where action for that purpose is required, (b) if the Investor is outside the United States, it will comply with all applicable laws and regulations in 

  

 7 

 
each foreign jurisdiction in which it purchases, offers, sells or delivers Shares or has in its possession or distributes any offering material, in all cases
at its own expense and (c) the Placement Agents are not authorized to make and have not made any representation, disclosure or use of any information in connection with the issue, placement, purchase and sale of the Shares, except as set forth
or incorporated by reference in the Base Prospectus or the Prospectus Supplement. 
 4.3(a) The Investor has full right, power,
authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (b) this Agreement
constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and
except as to the enforceability of any rights to indemnification or contribution that may be violative of the public policy underlying any law, rule or regulation (including any federal or state securities law, rule or regulation). 
 4.4 The Investor understands that nothing in this Agreement, the Prospectus or any other materials presented to the Investor in connection with
the purchase and sale of the Shares constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of
Shares. 
 4.5 Since the date on which a Placement Agent first contacted such Investor about the Offering, it has not engaged in any
transactions in the securities of the Company (including, without limitation, any Short Sales (as defined below) involving the Company’s securities). Each Investor covenants that it will not engage in any transactions in the securities of the
Company (including Short Sales) prior to the time that the transactions contemplated by this Agreement are publicly disclosed. Each Investor agrees that it will not use any of the Shares acquired pursuant to this Agreement to cover any short
position in the Common Stock if doing so would be in violation of applicable securities laws. For purposes hereof, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation
SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sales contracts, options, puts, calls, short sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h)
under the Exchange Act) and similar arrangements (including on a total return basis), and sales and other transactions through non-US broker dealers or foreign regulated brokers. 
 5. Survival of Representations, Warranties and Agreements; Third Party Beneficiary. Notwithstanding any investigation made by any party to this
Agreement or by the Placement Agents, all covenants, agreements, representations and warranties made by the Company and the Investor herein will survive the execution of this Agreement, the delivery to the Investor of the Shares being purchased and
the payment therefor. The Placement Agents shall each be a third party beneficiary with respect to the representations, warranties and agreements of the Investor in Section 4 hereof. 
 6. Notices. All notices, requests, consents and other communications hereunder will be in writing, will be mailed (a) if within the domestic
United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile or (b) if delivered from outside the United States, by International Federal Express or
facsimile, and will be 

  

 8 

 
deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered by
nationally recognized overnight carrier, one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed and (iv) if delivered by facsimile, upon electric confirmation of receipt and
will be delivered and addressed as follows: 
  

	
	 if to the Company, to:

	
	 Kosan Biosciences Incorporated

	
	
	 3832 Bay Center Place

	
	
	 Hayward, CA 94545

	
	
	 Attention: Chief Financial Officer

	
	
	 Facsimile: (510) 732-8401with copies to:

	
	
	 Cooley Godward Kronish LLP

	
	
	 Five Palo Alto Square

	
	
	 3000 El Camino Real

	
	
	 Palo Alto, CA 94306-2155

	
	
	 Attention: Suzannne Sawochka Hooper

	
	
	 Facsimile: (650) 745-1205

	

 if to the Investor, at its address on the Signature Page hereto, or at such other
address or addresses as may have been furnished to the Company in writing. 
 7. Changes. This Agreement may not be modified or
amended except pursuant to an instrument in writing signed by the Company and the Investor. 
 8. Headings. The headings of the
various sections of this Agreement have been inserted for convenience of reference only and will not be deemed to be part of this Agreement. 
 9. Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way
be affected or impaired thereby. 
 10. Governing Law. This Agreement will be governed by, and construed in accordance with, the
internal laws of the State of New York, without giving effect to the principles of conflicts of law that would require the application of the laws of any other jurisdiction. 
 11. Counterparts. This Agreement may be executed in two or more counterparts, each of which will constitute an original, but all of which, when
taken together, will constitute but one instrument, and will become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that the Company
shall deliver its counterpart to the Investor along with the Prospectus Supplement (or the filing by the Company of an electronic version thereof with the Commission). 
 12. Confirmation of Sale. The Investor acknowledges and agrees that such Investor’s receipt of the Company’s counterpart to this Agreement, together with the Prospectus Supplement (or 

  

 9 

 
the filing by the Company of an electronic version thereof with the Commission), shall constitute written confirmation of the Company’s sale of Shares
to such Investor. 
 13. Press Release. The Company and the Investor agree that the Company shall issue a press release announcing the
Offering prior to the opening of the financial markets in New York City on the business day immediately after the date hereof. 
 14.
Termination. In the event that the Placement Agreement is terminated by the Placement Agents pursuant to the terms thereof, this Agreement shall terminate without any further action on the part of the parties hereto. 
  

 10 

 Exhibit A 
 KOSAN BIOSCIENCES INCORPORATED 
 INVESTOR QUESTIONNAIRE 
 Pursuant to Section 3 of Annex I to the Agreement, please provide us with the following information: 
  

					
	1.	  	The exact name that your Shares are to be registered in. You may use a nominee name if appropriate:	  	
                                        
            
			
	2.	  	The relationship between the Investor and the registered holder listed in response to item 1 above:	  	
                                        
            
			
	3.	  	The mailing address of the registered holder listed in response to item 1 above:	  	
                                        
            
			
	4.	  	The Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:	  	
                                        
            
			
	5.	  	Name of DTC Participant (broker-dealer at which the account or accounts to be credited with the Shares are maintained):	  	
                                        
            
			
	6.	  	DTC Participant Number:	  	
                                        
            
			
	7.	  	Name of Account at DTC Participant being credited with the Shares:	  	
                                        
            
			
	8.	  	Account Number at DTC Participant being credited with the Shares:	  	
                                        
            

  

 11Form of Exclusive Manufacture and Marketing Agreement

 Exhibit 10.1 
 FORM OF 
 EXCLUSIVE MANUFACTURE 
 AND 
 MARKETING AGREEMENT 
 The “Parties,” YOUTH ENHANCEMEMENT SYSTEMS, INC. (“YES”), a Florida corporation, and
                             (“Owner”), a
                     corporation with offices located in
                            , entered into this “Agreement” effective as of
                    , 2006 (“Effective Date”), with reference to the following facts. 
 RECITALS 
 Owner is the exclusive
licensee of a patented (U.S. Patent No.             )
                                        
                , currently known as
“                    ” (“Product”) and desires to have YES produce a 28.5 minute long form commercial
(“Infomercial”) to promote the Product and desires to have YES broadcast the Infomercial and exclusively market the Product worldwide, excepting QVC, the Medical and Equine Industries and the catalogs identified on Attachment
“A” (the “Territory”) under the current name or a name of YES’s choosing; 
 YES, a leading international
marketing firm, successful in manufacturing, product development, production and distribution, desires to produce an Infomercial and exclusively market the Product in the Territory; 
 YES and Owner have established and set forth their obligations and expectations with respect to the manufacturing and marketing of the Product as set
forth herein. 
 AGREEMENT 
 1.
Warranties and Covenants. 
 1.1. YES. YES warrants, promises and covenants that it has the complete right, power and authority
to enter into this Agreement. 
 1.2. Owner. Owner warrants, promises and covenants that it: (i) has thee present right, power
and authority to enter into this Agreement; (ii) has the ability, power and authority to grant the rights to YES as set forth in this Agreement; (iii) will use commercially reasonable efforts to maintain and defend all such rights in full
force, including all intellectual property rights and governmental approvals that currently exist or may exist for the Product and the Produce name for the Term of this Agreement; (iv) has not and will not knowingly violate any third
party’s intellectual property rights, and (v) has disclosed to YES all agreements, arrangements and encumbrances affecting the Product and/or the Product’s financial viability. To the extent necessary to protect the marketing rights
in the Territory, YES shall have the right, but not the obligation to enforce Owner’s intellectual property rights to the extent not otherwise enforced by Owner. 

 1.3. Confidentiality. Each of the Parties agrees not to disclose (i) confidential information
regarding the Product’s construction, technical information, designs, drawings, concepts, ideas, sketches, wordings, media or marketing strategies, or composition, (ii) confidential information regarding the Infomercial production, and
(iii) confidential information regarding the other party, or such party’s companies, products, operations, or any other information which may be deemed a trade secret, or is sensitive in nature and not otherwise known to the public,
including the contents of this Agreement (“Information”), without the prior written consent of the other party. Notwithstanding the foregoing, disclosure may be made to persons on a need to know basis to effectuate the purposes
herein, such as third-party auditors and distributors, buyers and sales representatives, or by court order, or as otherwise provided herein so long as the recipient of such Information agrees to hold all such Information in strict confidence.

 1.4. Non-Competition. Excepting Owner’s Reserved Use (as hereinafter defined), the marketing rights granted herein are
exclusive and Owner agrees not to manufacture nor market, nor allow a third-party to manufacture or market, the Product or a product similar in composition or function, for itself or for third parties, in competition with YES’s marketing
efforts in the Territory during the Term (as hereinafter defined) of this Agreement. The Parties hereby acknowledge that Owner is in the process of developing a portable cosmetic unit (“Cosmetic Unit”) and nothing herein shall block
the continued development of the Cosmetic Unit. Upon completion, YES shall be presented with the first right of refusal to manufacture and market the Cosmetic Unit consistent with the terms presented herein. 
 2. The Product and Manufacture. 
 2.1.
The Product. A “Basic Unit” of the Product consists of one (1) polychromatic infrared diode therapy light unit with 2 settings, one (1) AC adapter, plus an instructional booklet and product packaging. The Product
may also consist of additional products as defined below. 
 2.2. Additional Products. Owner has developed a topical cream known as
“Health Lite Bio-Relief Cream” and may develop additional related products, which YES may elect to market in varying product configurations along with the Product pursuant to the terms herein (“Additional Products”).

 2.3. Manufacture of Product. For marketing within the Territory, YES shall have the sole responsibility to arrange for the
manufacture of the Product and for determining and maintaining standards of product quality. The parties expressly agree that YES may contract directly with Owner’s existing manufacturer for the Product. Notwithstanding this assignment of
rights and responsibilities, YES shall collaborate and consult with Owner on the quality of the final production sample. YES shall have the sole responsibility to acquire and maintain product liability insurance for the Product, in full force for
the Term of this Agreement, with Owner named as an additional insured. 
 2.4. Product Consumer List. YES and Owner agree that all
consumer names, addresses and phone numbers generated by YES from the marketing of the Product shall be solely owned by YES (“Consumer List”). 
  

 2 

 3. Feasibility Study/Production. 
 3.1. Feasibility Study. If not previously provided, upon execution of this Agreement, Owner will supply YES with five sample Basic Units, a list of
all Owner proposed claims for the Product and all existing claim substantiation, all drawings, picture, artwork, copies of trademarks, patents or applications for same for the Product, if any, so that YES can investigate and evaluate the Product,
source its manufacture, test the Product and determine if YES will elect to proceed with the project (collectively, “Feasibility Study”). Unless otherwise agreed in writing, the Feasibility Study shall be completed within ninety
(90) days from (i) the date on which YES shall have received the above materials or (ii) the Effective Date, whichever is later. Should YES determine that the project is feasible with respect to these issues, the project will proceed
with production of the Infomercial as provided below. Should YES determine that the project is not feasible, than YES shall notify Owner in writing, and this Agreement will be terminated and all marketing rights granted to YES by Owner hereunder
shall revert to Owner. 
 3.2. Infomercial Production/YES Materials. YES will have the sole discretion to determine if it will produce
an Infomercial, print advertisements, collateral materials, and/or tweak the Infomercial or re-design the Product packaging (collectively, “YES Material”). Owner shall provide collaboration in the production of YES Materials by
providing all existing print, art work and studies that Owner may own or control for the collateral support materials for the Product. 
 3.3. Owner Approval Responsibility. Before finalizing the Infomercial, Owner will have the right, ability and responsibility to give approval to the extent that YES Materials express the benefits, elements, and claims of the Product
accurately and place Owner in an accurate light (“Owner Approval”). Owner agrees that it will not unreasonably withhold its approval, nor delay its approval for an unreasonable period of time. Any request for Owner Approval shall be
submitted along with applicable information, and materials. If Owner does not respond within five (5) days of receipt of any request, then such request shall be deemed approved. 
 3.4. Awards Submission. During the Term of this Agreement, YES has the sole right to determine to submit the Infomercial for an Electronic
Retailing Association award. With respect to any other award submission, whether or not in the industry, Owner shall first obtain YES’s written approval of any such submission, which shall not be unreasonably withheld. 
 4. Marketing Plan. 
 4.1. The
Marketing Plan. YES will have the sole discretion to determine the marketing plan for the Territory. Within fifteen (15) days of the Effective Date, Owner will provide YES with its marketing plan for its Reserve Use, which plans Owner will
coordinate with YES’s marketing plan for the Term. With respect to the Territory, YES will be responsible during the Term of this Agreement for paying for, and managing directly, or through use of agents or sub-contractors, all aspects
associated with the implementation of the television and after-market marketing plan. These duties shall include the management of: (i) in-bound 

  

 3 

 
fulfillment; (ii) out-bound fulfillment; (iii) credit card processing; (iv) accounting; (v) inventory control; (vi) customer
service; (vii) media planning and buying; (viii) out-bound telemarketing; (ix) customer list database; (x) after-market sales; and (xi) foreign distribution. YES may contract with a current or future
subsidiary/parent/affiliate company to provide any of the above services, including distribution of the Product, provided that such services are of like quality, at or below market price and transfer pricing shall be equal to third party
distribution transfer pricing. 
 4.2. Project Set-up, Market Test and Media Costs. Upon completion of the Infomercial, YES shall
proceed with project set-up and purchase the media for test marketing for a period of two (2) months or such longer period, as YES shall continue to tweak the Infomercial and re-test (“Market Test”). Unless otherwise mutually
agreed, the Market Test shall conclude within one hundred twenty (120) days of the first airing date of the Infomercial. YES will provide all capital contribution for the project set-up and the purchase of the media for the Market Test.

 4.3. Failure/Success of Market Tests. Should YES cease tweaking or re-testing of the Infomercial or determines that the results of
the Market Test do not warrant further efforts, YES shall notify Owner in writing and this Agreement shall terminate and all marketing rights granted herein shall revert to Owner, excepting that YES shall retain the right to exclusively market to
its domestic consumers and accounts then existing due to its test marketing efforts and to internationally market in those countries where it has established a successful market for the Product, for the remainder of the Term. Should YES determine in
its sole discretion to continue marketing the Product, YES shall use commercially reasonable efforts to escalate the media spending and to maximize sales and the overall financial success of the marketing campaign for the Product. 
 5. Grant of Rights. 
 5.1.
Ownership of Property and Copyright. YES acknowledges and agrees that Owner is the sole owner/holder of all rights to the Product and its current name, and the holder of an exclusive license to utilize the proprietary technology incorporated
into the Product, including all copyrights and patents pertaining thereto (collectively, the “Intellectual Property”). YES is the sole owner of all rights, including copyrights and trademarks for any and all YES Materials and the
Consumer List. If YES elects to market the product under a YES trademark or branded name, then YES shall retain all ownership rights of said name. 
 5.2. Exclusive Marketing Rights. Subject to the terms and conditions of this Agreement, Owner hereby grants to YES the exclusive worldwide (a) right to air the Infomercial and market and sell the Product in the Territory and
(b) license to use the Intellectual Property to market the Product in the Territory for the Term. YES’s exclusive marketing rights shall include all possible market areas available today, and those that will be available in the future
throughout the world. These areas include, but are not limited to: print, retail; radio; television; cable; satellite cable and television; catalog; the Internet; and home shopping networks. Owner expressly reserves the right to exclusively market
the Product on QVC, in the Medical and Equine industries and in the catalogs set forth on Attachment “A” (“Reserved Use”). With respect to its Reserved Use sales, Owner may, if it chooses to do so at its sole discretion,
purchase Basic Units from YES at 120% of YES’s landed cost/unit, FOB YES’s warehouse. 
  

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 5.3. Exclusivity Minimum. The exclusive marketing rights granted to YES shall remain exclusive for
fourteen months from the first air date of the final version of the Infomercial (“Initial Term of Exclusivity”). Thereafter, the exclusivity of the rights granted shall extend automatically for an additional one year period if YES
sells a minimum of 100,000 Basic Units from Owner during the Initial Term of Exclusivity or any yearly period thereafter. If YES fails to sell the minimum number of units to automatically extend exclusivity, then upon written notice to YES from
Owner, YES’s rights hereunder shall become non-exclusive for the duration of the Term, excepting that for the balance of the Term YES shall retain the right to exclusively market to domestic consumers and accounts then existing and to
internationally market in those countries where it has established a successful market for the Product. 
 5.4. Risk Acknowledgment.
Owner acknowledges and agrees that it is well-informed about the financial risks associated with the television advertising industry and that YES makes no warranty, expressed or implied, as to the degree of success to be achieved by reason of the
televising of the Infomercial, nor shall Owner seek to hold YES liable with respect thereto. YES has not made and does not hereby make, any representation or warranty with respect to the level of sales and revenue to be derived as a result of the
televising of the Infomercial. Owner recognizes and acknowledges that the level of revenues from sales of the Product is speculative. Both Parties shall bear their own attorneys fees and costs associated with the negotiation and drafting of this
Agreement. 
 5.5. Internet Advertising. YES may elect to use search engines, affiliate web sites, links, or other advertising
techniques to advertise the Product via the Internet. The nature of advertising via the Internet is such that it may be difficult or impossible to remove Product advertising from websites, links and/or search engines operated and/or controlled by
third parties despite YES’s request to remove. Owner acknowledges and agrees that YES shall have no liability for Product advertisements that may continue to exist on the Internet upon expiration or earlier termination of this Agreement, except
to the extent any such website is operated and controlled by YES. 
 6. Compensation. 
 6.1. Owner Compensation. Providing Owner fulfills the terms and conditions of this Agreement, YES will disburse to Owner “Compensation”
as follows: (a) three percent (3%) of Adjusted Gross Revenue received by YES from all direct response sales of the Product to U.S. consumers; plus (b) five percent (5%) of Adjusted Gross Revenue received by YES from the
distribution of the Product outside the United States and through all other U.S. marketing channels sales, including wholesale and retail distribution. 
 6.2. Adjusted Gross Revenue. “Adjusted Gross Revenue” shall mean all gross revenues received by YES from the sale of Product, less: (a) shipping and handling charges received from
customers; (b) returns and credits actually paid to customers; (c) payment of all sales taxes collected from customers; (d) retail commissions to third parties not to exceed five percent (5%) and ad allowances not to exceed
fifteen percent (15%), if any; and (e) a rolling return reserve initially set at ten percent (10%) of gross revenue but to be adjusted to reflect actual return rate when such becomes known. 
  

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 6.3. Accounting and Disbursement of Owner Compensation. Compensation payments and accounting
statements shall be due to Owner thirty (30) days from the end of each month in which the relevant Adjusted Gross Revenue is received provided such Compensation totals a minimum of $100.00 in the month. Any Compensation accumulated in an amount
of less than $100.00 will be carried over and paid within thirty (30) days of the end of the calendar month in which this threshold is met. A final accounting and disbursement, if any, will occur at the conclusion of the Term. YES will keep
accurate books and records pertaining to all sales of the Product and shall prepare accurate accounting statement setting forth all sales, returns, taxes, and Compensation for each monthly period. Owner shall have the ability and right to inspect
and audit in accordance with generally accepted auditing standards, GAAS, all books and records concerning the Product to the extent necessary to determine the Compensation payable hereunder. Owner, or its duly appointed representative, will conduct
such inspection only during normal business hours upon a written request submitted to YES. Such notice shall be received by YES at least twenty (20) days prior to the date of the inspection or if inspection is sought while YES is conducting its
year-end audit, sixty (60) days prior to such inspection date 
 7. Term. Subject to the terms and conditions of this Agreement,
the “Term” of this Agreement shall be for five (5) years from the Effective Date. 
 7.1. Wind-down of Inventory
Early Termination. Upon the early termination of the Agreement for any reason, notwithstanding any other rights provided for herein, YES shall have the right to market the Product to sell off all inventory in YES’s possession at the time of
such termination as follows: YES shall have one hundred eighty (180) days to continue exclusively marketing the Product through the Infomercial in the United States and YES shall have the right to non-exclusively market the Product in other
marketing channels until any such inventory is exhausted (“Winddown Rights”). Prior to exercising its Winddown Rights with respect to all marketing channels except DRTV, YES shall first offer the inventory to Owner at one hundred
twenty percent (120%) of YES’s landed manufacturing cost (FOB YES U.S. warehouse) or allow Owner to match any lower third party offer that YES intends to accept prior to acceptance of same (“Owner’s Right of First
Refusal”). 
 7.2. Wind-down of Inventory Following Expiration. Upon the expiration of the Agreement, YES shall have the
right to market the Product to sell off all inventory in YES’s possession at the time of such expiration subject to Owner’s Right of First Refusal. 
 7.3. Automatic Extension. Provided that the minimums set forth in Section 5.3 above continue to be met, the Term of this Agreement will extend automatically for additional one (1) year periods, unless
the parties agree in writing thirty (30) days prior to the end of the Term or any extension thereof, not to extend the Agreement. 
 8.
Assignment of Rights. YES shall have the complete power, right and authority to assign any and all rights granted under this Agreement to any person, entity or company. YES agrees to remain liable for its obligations to Owner as set forth in
this Agreement, unless the assignee assumes such obligations and Owner accepts such assumption. YES may exercise its rights and perform its obligations hereunder, in whole or in part, through any one or more of its subsidiaries or other affiliated
entities. 
  

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 9. Indemnification. Owner agrees to defend and hold YES, its successors, assigns, licensees,
agent, associates, directors and employees harmless from any and all claims, costs and expenses, attorney’s fees, damages, recoveries, and settlements which arise from, or may arise out of, Owner’s Reserve Use, any representation, claim,
statement, promise, warranty, and presentation that Owner makes about the Product, from product liability and product defects claims arising from Product manufactured by Owner, from any infringement of Owner on the intellectual property rights of
another, from the breach by Owner of any of its representations, warranties, covenants, obligations, agreements or duties under this Agreement. YES agrees to defend and hold Owner, its successors, assigns, licensees, agents, associates, directors
and employees harmless from any and all claims, costs and expenses, attorney’s fees, damages, recoveries, and settlement which arise from, or may arise out of, any representation, claim, statement, promise, warranty, and presentation that YES
makes about the Product in any YES Materials, or by any of YES’s representatives, sales people, public relations people, agents, and marketing people which Owner has not approved or ratified, from product liability and product defects claims
arising from Product manufactured by YES, and from the breach by YES of any of its representations, warranties, covenants, obligations, agreements or duties under this Agreement. These indemnification rights and duties shall survive this Agreement
without limitation as to time. 
 10. Independent and Separate Companies. YES and Owner enter into this Agreement as separate and
independent entities. YES and Owner will each be responsible for the payment of their respective compensation, wages, taxes, dues, employment benefits and operating expenses in connection with the separate operations of their businesses. This
Agreement does not create a partnership, agency or joint venture relationship between Owner and YES. Neither YES nor Owner shall, or permit any person or entity acting for or on its behalf to, bind or obligate the other party or represent to have
such authority, without the express prior written approval of the other party. 
 11. Entire Agreement. This Agreement contains the
entire understanding between YES and Owner and supersedes any prior agreements, written or oral, respecting the subject matter of this Agreement. 
 12. Controlling Law/Enforcement. The laws of the State of California will govern the interpretation of this Agreement, and the rights of obligations of the parties to it, without regard to a conflict of laws principle. A court will
consider the terms and conditions of this Agreement to be severable so that any of its terms, conditions, or clauses shall not invalidate, or render unenforceable the entire agreement. The exclusive venue and jurisdiction for any actions related to
this Agreement shall be in the state courts in Riverside County, Indio Branch, California, and to the extent that federal courts have exclusive jurisdiction, the U.S. District Court for the Central District. If any party to this Agreement retains
the services of any attorney, or files a lawsuit, to enforce the terms and conditions of this Agreement, a court may award the prevailing party costs and expenses, including attorney’s fees. 
  

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 13. Notices. Any and all notices and demands by any party shall be in writing and shall be validly
given or made only if personally delivered or deposited in the United States mail, certified or registered, postage prepaid, return receipt requested, or if made by Federal Express or other similar delivery service, with proof of delivery, or if
made by confirmed receipt e-mail or facsimile. Service shall be conclusively deemed made: Upon receipt if personally delivered; or three (3) days after having mailed; or 24 hours after being delivered by an overnight delivery service, confirmed
e-mail or facsimile, whichever is sooner. Notices shall be addressed as follows: 
  

									
	(a)	  	Owner:	  	  
	  	
		  		  	  
	  	
		  		  	Phone:	 	  
	  	
		  		  	Fax:	 	  
	  	
		  		  	E-Mail:	 	  
	  	
				
	(b)	  	YES:	  	  
	  	
		  		  	  
	  	
		  		  	  
	  	
		  		  	Phone:	 	  
	  	
		  		  	Fax:	 	  
	  	
		  		  	E-Mail:	 	  
	  	

 14. Facsimile Signatures. Facsimile signatures shall be deemed original signatures for purposes of
this Agreement, with such facsimile signatures having the same legal effect as original signatures. 
 IN WITNESS HEREOF, the parties hereto
have executed this Agreement as of the Effective Date herein. 
  

			
	  

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	  

		
	By:	 	  

	Name:	 	
	Title:	 	

  

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 ATTACHEMENT “A” 
 RESERVED USE CATALOG ACCOUNTS 
  

 9

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