Document:

Exhibit

QUANTUM CORPORATION
CHANGE OF CONTROL AGREEMENT
THIS CHANGE OF CONTROL AGREEMENT (the “Agreement”) by and between James J. Lerner (the “Employee”) and QUANTUM CORPORATION, a Delaware corporation (the “Corporation”), is effective as of the date the Employee commences employment with the Corporation in accordance with that certain offer letter by and between the Corporation and the Employee dated June 22, 2018 (the “Offer Letter”).
Recitals
A.    Whereas, the Employee is President and Chief Executive Officer of the Corporation.
B.    The board of directors of the Corporation (the “Board”) has determined that it is in the best interests of the Corporation and its stockholders to assure that the Corporation will have the continued dedication and objectivity of the Employee, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined below) of the Corporation.
C.    In furtherance of the above goal, the Board believes that it is important to provide the Employee with compensation arrangements and stock benefits upon an Involuntary Termination (as defined below) in connection with a Change of Control, provided the Employee executes and does not revoke a release of claims in favor of the Corporation, which compensation arrangements are intended to be competitive with those of other corporations, and provide the Employee with enhanced financial security so that the Employee will be incented to remain with the Corporation prior to a potential Change of Control and following an actual Change of Control and to seek to maximize the value of the Corporation in and following any potential or actual Change of Control.
D.    Certain capitalized terms used in this Agreement are defined in Section 4 below or throughout this Agreement.
In consideration of the mutual covenants herein contained, and in consideration of the continuing employment of the Employee by the Corporation, the parties agree as follows:
1.Change of Control Severance Benefits.  If the Employee’s employment terminates within a Change of Control Period, then subject to Section 10 and the other provisions of this Agreement, the following shall apply:
(a)    Voluntary Resignation; Termination For Cause.  If the Employee’s employment terminates in a voluntary resignation, including termination due to death or Disability (and not an Involuntary Termination), or if the Employee is terminated for Cause, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) as may be available under the Corporation’s severance and benefits plans and policies existing at the time of such termination.

(b)    Involuntary Termination.  If the Employee’s employment terminates due to an Involuntary Termination, then the Employee shall be entitled to receive the following severance payments and benefits:
(i)    A lump sum payment equal to one hundred fifty percent (150%) of the Employee’s Base Compensation; 
(ii)    A lump sum payment equal to one hundred fifty percent (150%) of the Employee’s Incentive Pay as in effect immediately prior to the Involuntary Termination; and 
(iii)    If the Employee elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the time period prescribed pursuant to COBRA for the Employee and the Employee’s eligible dependents (if any), monthly reimbursements from the Corporation for the Employee’s COBRA premiums at the same level of health coverage and benefits as in effect for the Employee (and the Employee’s eligible dependents, if any) on the day immediately prior to the termination of the Employee’s employment or, if greater, on the day immediately prior to the Change of Control.  The Corporation shall continue to reimburse the Employee for premiums paid to continue such coverage until the earlier of (A) eighteen (18) months after the date of the Involuntary Termination, or (B) the date upon which the Employee and Employee’s eligible dependents no longer are eligible to receive continuation coverage pursuant to COBRA.  The Employee shall be responsible for the payment of COBRA premiums (including, without limitation, all administrative expenses) for any remaining COBRA period.  If the provisions of COBRA do not apply to Employee at the time of the termination of the Employee’s employment (for instance, if the Employee is employed outside of the United States), the Corporation will provide Employee with a lump sum payment equal to eighteen (18) multiplied by the portion, if any, of the premium the Corporation was paying for the Employee’s health coverage and benefits as in effect for the Employee on the day immediately preceding the day of the Employee’s termination of employment.  In addition, and notwithstanding anything to the contrary in this Section 1(b)(iii), if the Corporation determines in its sole discretion that it cannot provide the COBRA benefits without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Corporation will in lieu thereof provide to the Employee a taxable monthly payment, during the eighteen (18) months following termination of the Employee’s employment, in a monthly amount equal to the monthly COBRA premium that the Employee would be required to pay to continue group health coverage for the Employee and the Employee’s eligible dependents (if any) in effect on the day immediately before the date of termination of his or her employment (which amount will be based on the premium for the first month of COBRA coverage), which payments will be made regardless of whether the Employee elects COBRA continuation coverage.
(c)    Offset.  In the event the Employee is entitled to severance payments or benefits pursuant to any agreement or arrangement with the Corporation (including but not limited to the Offer Letter and any agreements or arrangements with predecessor employers which have been assumed by the Corporation by operation of law or otherwise), the severance pay (including any payments under Section 1(b)(iii)) the Employee would otherwise be entitled to receive under this Section 1 will be reduced by any liability the Corporation may have to the Employee with respect to such agreement(s) or arrangement(s).

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2.    Acceleration of Vesting of Equity-Based Compensation Awards.
(a)    Termination in Connection with a Change of Control.  If the Employee’s employment terminates within a Change of Control Period, then, subject to Section 10 and the other provisions of this Agreement, the vesting of any equity-based compensation awards held by the Employee shall be as follows:
(i)    Voluntary Resignation; Termination for Cause.  If the Employee’s employment terminates in a voluntary resignation, including termination due to death or Disability (and not an Involuntary Termination), or if the Employee is terminated for Cause, the Employee is entitled to exercise or receive payment for any equity-based compensation awards that vested prior to the termination of employment.  All further vesting of Employee’s outstanding equity-based compensation awards will terminate immediately.
(ii)    Involuntary Termination.  If the Employee suffers an Involuntary Termination, then: (x) the portion of any equity-based compensation awards then held by the Employee not subject to performance‐based restrictions or requirements (“Performance Criteria”) that are not vested shall automatically become vested; and (y) the portion of any equity-based compensation awards then held by the Employee subject to Performance Criteria (“PSUs”) that are not vested shall be deemed to be earned and vested and the applicable Performance Criteria waived; provided that, in the event of any conflict between the terms specified above and an applicable PSU award agreement, the terms of the applicable PSU award agreement shall apply.
3.    Code Section 409A.
(a)    Notwithstanding anything to the contrary in this Agreement, no Deferred Benefits (as defined below) will be considered due or payable until the Employee has a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations and any guidance promulgated thereunder (“Section 409A”).  In addition, if the Employee is a “specified employee” within the meaning of Section 409A at the time of the Employee’s separation from service (other than due to death), then any Deferred Benefits otherwise due to the Employee on or within the six (6) month period following the Employee’s separation from service will accrue during such six (6) month period and will become payable in a lump sum payment (less any applicable tax withholdings) on the date six (6) months and one (1) day following the date of the Employee’s separation from service.  All subsequent payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if the Employee dies following his or her separation from service but prior to the six (6) month anniversary of his or her date of separation, then any payments delayed in accordance with this paragraph will be payable in a lump sum (less any applicable tax withholdings) to the Employee’s estate as soon as administratively practicable after the date of the Employee’s death and all other Deferred Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.

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4.    Definition of Terms.  The following terms referred to in this Agreement shall have the following meanings:
(a)    Base Compensation.  “Base Compensation” shall mean the annual base salary the Corporation pays the Employee for his or her services as of immediately prior to the date of employment termination or, if greater, as of immediately prior to the Change of Control.
(b)    Change of Control.  “Change of Control” shall mean the occurrence of any of the following events:
(i)    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (“Person”) is or becomes the “beneficial owner” (as defined in Rule l3d-3 under the 1934 Act), directly or indirectly, of securities of the Corporation representing more than fifty percent (50%) of the total voting power represented by the Corporation’s then outstanding voting securities; or
(ii)    The consummation of a merger or consolidation of the Corporation with any other corporation, other than a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Corporation or such surviving entity outstanding immediately after such merger or consolidation, or 
(iii)    Any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such Person or Persons) assets from the Corporation that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Corporation immediately prior to such acquisition or acquisitions; provided, however, that a transfer of the Corporation’s assets to an entity that is controlled by the Corporation or owned by the Corporation’s stockholders in substantially the same proportions by the persons who held the Corporation’s voting securities immediately before the transfer will not constitute a Change of Control.
(iv)    Notwithstanding the foregoing, a transaction will not constitute a Change of Control if its primary purpose is to (1) change the jurisdiction of the Corporation’s incorporation, or (2) create a holding company that will be owned in substantially the same proportions by the persons who held the Corporation’s voting securities immediately before such transaction.
(c)    Change of Control Period.  “Change of Control Period” shall mean the period (i) commencing three (3) months before a Change of Control, and (ii) ending twelve (12) months after a Change of Control.
(d)    Deferred Benefits.  “Deferred Benefits” shall mean any severance payments and benefits under this Agreement, and any other severance payments or separation benefits to be paid or provided to the Employee (or the Employee’s estate or beneficiaries) that in each case, when considered together, are considered deferred compensation under Section 409A. 

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(e)    Incentive Pay.  “Incentive Pay” shall mean the Employee’s target bonus opportunity under any annual cash bonus plan maintained by the Corporation. 
(f)    Involuntary Termination.  “Involuntary Termination” shall mean any purported termination of the Employee’s employment by the Corporation which (x) is not effected due to the Employee’s Disability or death and is not effected for Cause, or (y) any termination of the Employee’s employment by the Employee within ninety (90) days following the end of the Cure Period (as defined below) as a result of the occurrence of any of the following without his or her written consent: (i)  the assignment to the Employee of any duties or the reduction of the Employee’s duties, either of which results in a significant diminution in the Employee’s title, position or responsibilities with the Corporation in effect immediately prior to the Change of Control, or the removal of the Employee from such position and responsibilities; (ii) a substantial reduction, in the aggregate, of the facilities and perquisites (including office space and location) available to the Employee immediately prior to such reduction; (iii) a material reduction by the Corporation in the Base Compensation of the Employee as in effect immediately prior to the Change of Control, other than a one-time reduction applicable to substantially all similarly-situated executives not to exceed 10%; (iv) a material reduction by the Corporation in the Incentive Pay of the Employee as in effect immediately prior to the Change of Control, other than a one-time reduction applicable to substantially all similarly-situated executives; (v) a material reduction, in the aggregate, by the Corporation in the kind or level of employee benefits (excluding equity compensation opportunities, any form of compensation specifically addressed in this subsection (d) and Change of Control severance protection) to which the Employee is entitled immediately prior to the Change of Control with the result that the Employee’s overall benefits package is materially reduced, other than a one-time reduction applicable to substantially all similarly-situated executives; (vi) the relocation of the Employee to a facility or a location more than fifty (50) miles from the Employee’s then present location; (vii) the failure of the Corporation to obtain the assumption of this Agreement by any successors contemplated in Section 8 below; or (viii) without limiting the generality or the effect of the foregoing, any material breach of this Agreement.  For purposes of clause (y) in the immediately preceding sentence, the Employee must provide written notice to the Corporation of the condition that could constitute an “Involuntary Termination” event no later than ninety (90) days following the initial existence of such condition and such condition must not have been remedied by the Corporation within thirty (30) days (the “Cure Period”) following such written notice.  For purposes of clause 4(f)(y)(i) above, if, as a result of a Change of Control transaction, the Corporation’s stock is no longer publicly traded (i.e., the Corporation is no longer a public company), then, beginning six months from the date of the Change of Control through the end of the Change of Control Period, Employee may consider the change in stature from being a public company CEO to a private company CEO a significant diminution in title, position or responsibilities, and have the right to terminate his employment and have such termination constitute an Involuntary Termination.  In addition, a significant diminution in your title, position and responsibilities will be deemed to have also occurred if you are not the single most senior executive officer of the surviving entity following a Change of Control transaction, and if the surviving entity is operated as a separate subsidiary or business unit, then the ultimate parent thereof.
(g)    Cause.  “Cause” shall mean: (i) any act of personal dishonesty taken by the Employee in connection with his or her responsibilities as an employee that is intended to result in 

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substantial personal enrichment of the Employee; (ii) the conviction of, or plea of no contest to, a felony; (iii) a willful act by the Employee which constitutes gross misconduct injurious to the Corporation; (iv) a material breach of the Employee’s fiduciary duty to the Corporation or continued violations by the Employee of the Employee’s obligations to the Corporation under the Corporation’s written policies and procedures (including, but not limited to any written agreement between Employee and the Corporation) which are demonstrably willful and deliberate on the Employee’s part after the Corporation has delivered a written demand for performance to the Employee that describes the basis for the Corporation’s belief that the Employee has materially breached his fiduciary duties or not substantially performed his or her duties and afforded the Employee at least fifteen (15) days to cure, (v) Employee’s failure to reasonably cooperate in any audit or investigation of the business or financial practices of the Corporation that continues after written notice from the Board and at least fifteen (15) days to cure, or (vi) a material violation by the Employee of the Corporation’s written material policies and procedures that, in the good faith judgement of the Board, has caused or is reasonably likely to cause significant harm to the Corporation’s business or reputation.
(h)    Disability.  “Disability” shall mean that the Employee has been unable to perform his or her duties under this Agreement as the result of his or her incapacity due to physical or mental illness with or without reasonable accommodation, and such inability, at least twenty-six (26) weeks after its commencement, is determined to be total and permanent by a physician selected by the Corporation or its insurers and acceptable to the Employee or the Employee’s legal representative (such statement as to acceptability not to be unreasonably withheld).  Termination resulting from Disability may only be effected after at least thirty (30) days’ written notice by the Corporation of its intention to terminate the Employee’s employment.  In the event that the Employee resumes the performance of substantially all of his or her duties hereunder before the termination of his or her employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked.
(i)    Disinterested Board.  “Disinterested Board” shall mean the members of the Board excluding those members of the Board, if any, who are parties to agreements or arrangements identical to or substantially similar to this Agreement.
5.    Limitation on Payments.  In the event that the severance and other benefits provided for in this Agreement or otherwise payable or provided to the Employee (a) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (b) but for this Section 5, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Employee’s severance benefits hereunder shall be either:
(i)    delivered in full, or
(ii)    delivered as to such lesser extent which would result in no portion of such severance benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Employee on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code.  Unless the Corporation and the Employee otherwise agree in writing, any determination required under 

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this Section 5 shall be made in writing in good faith by a nationally recognized accounting firm appointed by the Corporation (the “Accountants”).
In the event that a reduction in benefits as described in clause (ii) above is required under this Section 5 of this Agreement:
(x)    The phrase “stock options” as used in this Agreement will mean stock options, stock appreciation rights and similar awards for which the exercise price is at least equal to the fair market value of the shares underlying the award on the date of grant (the “Options”); and
(y)    The phrase “restricted stock awards” as used in Section 5 of this Agreement will mean restricted stock, restricted stock units, performance shares, performance units, and other similar awards, excluding Options.
In the event of a reduction in benefits hereunder, the reduction will occur in the following order: the vesting acceleration of stock options, then cash payments, then vesting acceleration of restricted stock awards, then Corporation-paid COBRA coverage, and then all other benefits.  In the event that acceleration of vesting of stock options or restricted stock awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant (that is, the latest first) for the Employee’s stock options or restricted stock awards, as applicable.  If two or more stock options or restricted stock awards are granted on the same day, the stock options or restricted stock awards, as applicable, will be reduced on a pro-rata basis.  Further, within the order of reduction set forth above, with regard to any reductions of each of cash payments, Corporation‐paid COBRA coverage, or any other benefits, the payment or benefit to be provided on the latest date following the occurrence of the event otherwise triggering the Excise Tax will be the first payment or benefit to be reduced.  In no event will the Employee have any discretion with respect to the ordering of the reductions described above in this paragraph. 
For purposes of making the calculations required by this Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Corporation and the Employee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.
In the event that the Corporation’s independent public accountants immediately prior to the Change of Control (as defined in this Agreement) are unable to make the determinations regarding parachute payments within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended, and any final regulations and guidance thereunder (the “Code”), as described in Section 5 of this Agreement, then the Accountants (as defined in this Agreement) will mean a nationally recognized accounting or valuation firm selected by the Corporation.  The Corporation shall bear all costs and be responsible for the payment of any reasonable fees to the Accountants in connection with any calculations contemplated by this Section 5.
6.    At-Will Employment.  The Corporation and the Employee acknowledge that the Employee’s employment is at will and may be terminated at any time and for any reason, with or without 

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notice.  On termination of the Employee’s employment, the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise be available in accordance with the Corporation’s established employee plans and policies at the time of termination.
7.    Term, Amendment and Termination.
(a)    Term.  Subject to subsection (b) below, this Agreement shall terminate upon the earlier of (i) the date that all obligations of the parties hereunder have been satisfied, (ii) March 31, 2021 (the “Initial Term”) or (iii) twelve (12) months after a Change of Control; provided however, that the terms of this Agreement shall be automatically extended for additional one year terms (“Subsequent Terms”) following the end of the Initial Term or any Subsequent Term, unless the Corporation provides written notice at least three (3) months in advance of the expiration of the current term.  A termination of the terms of this Agreement pursuant to the preceding sentence shall be effective for all purposes, except that such termination shall not affect the payment or provision of compensation or benefits on account of a termination of employment occurring prior to the termination of the terms of this Agreement.  For purposes of clarity, neither the Corporation’s non‐renewal of this Agreement, nor any resignation by the Employee as a result of such non‐renewal of this Agreement, in each case in accordance with this Section 7(a), alone, shall constitute an Involuntary Termination. 
(b)    Amendment and Termination.  Except as provided or permitted by Section 7(a), during the Initial Term or any Subsequent Term and prior to a Change of Control that occurs after the Effective Date, (i) any amendment of this Agreement that adversely affects the Employee’s rights under the Agreement or (ii) any termination of this Agreement, shall, unless consented to in writing by the Employee, (x) not become effective until six (6) months after the conclusion of the then‐current Initial Term or Subsequent Term, as applicable, and (y) become effective only after unanimous resolution of the Disinterested Board.  Notwithstanding the foregoing, if a Change of Control occurs during the six (6) month notice period described above, such amendment or termination of this Agreement described in the immediately preceding sentence shall not become effective unless the affected Employee consents in writing to the amendment or termination.  If a Change of Control occurs before the termination of this Agreement: (A) this Agreement shall no longer be subject to amendment, change, substitution, deletion, revocation or termination in any respect whatsoever except as provided in paragraph 7(a)(iii) above or to the extent the affected Employee consents to such amendment or termination in accordance with this paragraph, and (B)  if another Change of Control occurs before the termination of this Agreement, the  twelve (12) month period described paragraph 7(a)(iii) above shall be calculated based on the date of such subsequent Change of Control.  For purposes of clarity, any amendment that adversely affects the Employee’s rights under this Agreement or any termination of this Agreement, in each case that is to be effective during the Initial Term or any Subsequent Term, shall require the Employee’s written consent. 
(c)    Form of Amendment.  The Form of any proper amendment or termination of this Agreement shall be a written instrument signed by a duly authorized officer or officers of the Corporation, and, if applicable, certifying that the amendment or termination has been approved by the Disinterested Board in accordance with Section 7(b).

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8.    Successors.
(a)    Corporation’s Successors.  Any successor to the Corporation (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Corporation’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Corporation would be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the term “Corporation” shall include any successor to the Corporation’s business and/or assets which executes and delivers the assumption agreement described in this subsection (a) or which becomes bound by the terms of this Agreement by operation of law.
(b)    Employee’s Successors.  The terms of this Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
(c)    Employment By Subsidiaries.  If the Employee is employed by a wholly owned subsidiary of Quantum Corporation, then: (i) “Corporation” as defined herein shall be deemed to include such subsidiary; and (ii) the effects intended to result from a Change of Control under this Agreement shall apply to such subsidiary, and the Employee shall be entitled to all the benefits and subject to all the obligations provided herein. 
9.    Notice.
(a)    General.  Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of the Employee, mailed notices shall be addressed to him at the home address which he most recently communicated to the Corporation in writing.  In the case of the Corporation, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary.
(b)    Notice of Termination.  Any termination by the Corporation for Cause or by the Employee as a result of an Involuntary Termination shall be communicated by a notice of termination of the other party hereto given in accordance with this Section 9 of this Agreement.  Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than fifteen (15) days after the giving of such notice, or, in the case of an Involuntary Termination pursuant to clause (y) of Section 4(f), in accordance with the timing requirements set forth in Section 4(f)).  The failure by the Employee to include in the notice any fact or circumstance which contributes to a showing of Involuntary Termination shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance in enforcing his or her rights hereunder.
10.    Release of Claims.  In order to receive any of the benefits provided for pursuant to this Agreement upon the Employee’s Involuntary Termination, the Employee (or his or her legal 

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representative in the event of death or disability as the case may be) shall be required to execute and not revoke a release of claims (in substantially the same form as attached hereto as Exhibit A) in favor of the Corporation within the period required by the release and in no event later than sixty (60) days following the Employee’s Involuntary Termination, inclusive of any revocation period set forth in the release, which release will include a provision prohibiting the solicitation of employees of the Corporation for a period of one year.  For the avoidance of doubt, the Corporation shall be entitled to revise Exhibit A (before it first is delivered to the Employee following Employee’s Involuntary Termination) to reflect changes in law, provided that any such revisions must be consistent with the original intended scope of the release of claims and must not add new post-employment obligations on the part of the Employee.
11.    Timing of Benefits.  Subject to Section 3 of this Agreement, benefits provided for pursuant to this Agreement shall be paid on the sixty-first (61st) day following Employee’s separation from service, but only if the Employee has signed and not revoked the release of claims required pursuant to Section 10 of this Agreement.
12.    Miscellaneous Provisions.
(a)    No Duty to Mitigate.  The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that the Employee may receive from any other source.
(b)    Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Corporation (other than the Employee).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(c)    Whole Agreement.  No agreements, representations or understandings (whether oral or written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof.  This Agreement represents the entire agreement and understanding between the Corporation and Employee concerning the subject matter of this Agreement, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement, with the exception of the Offer Letter and any written proprietary rights, invention, confidential information or similar agreement entered into between the Employee and the Corporation.
(d)    Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California.
(e)    Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.

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(f)    Arbitration.  Any claim or dispute, whether in contract, tort, statute or otherwise (including the interpretation and scope of this Arbitration Clause, and the arbitrability of the claim or dispute), between the Employee and the Corporation as well as their respective employees, agents, successors or assigns, which arises out of or relates to this Agreement shall be resolved by neutral, binding arbitration and not by a court action.  Any claim or dispute is to be arbitrated by a single arbitrator from JAMS (www.jamsadr.com).
The arbitrator shall be an attorney or retired judge and shall be agreed upon by the parties within ten (10) business days of the demand for arbitration being filed with the arbitration organization.  If the parties are unable to select an arbitrator, then the arbitration organization will provide a list of five (5) arbitrators and each party shall strike two names within five (5) business days and one of the remaining individuals will be appointed by the arbitration organization as the arbitrator within five (5) business days of receipt of the parties’ submissions.
Unless otherwise provided for by law, the Corporation will pay all costs and expenses of such arbitration, with the exception of any filing fees associated with any arbitration initiated by Employee, but only so much of the filing fees as Employee instead would have paid had Employee filed a complaint in a court of law.
The arbitrator shall apply California substantive and procedural law to the proceeding, except to the extent Federal substantive law, including the Federal Arbitration Act, would apply to any claim.  The arbitration hearing shall be conducted in [Santa Clara County, California].  If the chosen arbitration organization’s rules conflict with this Arbitration Clause, then the provisions of this Arbitration Clause shall control.
Discovery during arbitration will be conducted pursuant to the California Discovery Act.  All of the provisions of California Code of Civil Procedure section 1283.05 as well as any amendments or revisions thereto, are incorporated into this Agreement.  The arbitrator shall follow the [California] Evidence Code as it relates to the trial of civil actions.  The parties are free to waive or modify any evidentiary rule or procedure with the consent of the arbitrator.
The arbitrator’s written award with findings of fact law shall be issued in writing within thirty (30) days of the conclusion of the proceedings and shall be final and binding on all parties, except that a party may request a new arbitration under the rules of the arbitration organization by a three-arbitrator panel.  The appealing party requesting new arbitration shall be responsible for the filing fee and other arbitration costs subject to a final determination by the arbitrators of a fair apportionment of costs.  Any court having jurisdiction may enter judgment on the arbitrator’s award.
The Parties retain any and all injunctive relief rights.  This Arbitration Clause shall survive any termination of this contract.  If any part of this Arbitration Clause is deemed or found to be unenforceable for any reason, the remainder shall remain enforceable.
THE PARTIES UNDERSTAND AND AGREE THAT THEY ARE WAIVING THEIR RIGHTS TO TRIAL BEFORE A JURY AND TO SUBMIT ANY CLAIMS TO BINDING ARBITRATION.

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(g)    Reimbursement of Attorneys’ Fees.  In the event that the Employee brings an action to enforce the Employee’s rights under this Agreement and the arbitrator described in Section 12(f) determines that the Employee is the prevailing party consistent with California Civil Code section 1717, the Corporation shall pay or reimburse the Employee’s reasonable attorney fees and costs to enforce the Employee’s rights under this Agreement.  Any such payment or reimbursement shall be made no later than thirty (30) days following the final adjudication of the action.
(h)    No Assignment of Benefits.  The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this subsection (g) shall be void.
(i)    Withholding and Taxes.  The provisions under this Agreement are intended to comply with or be exempt from the requirements of Section 409A, so that none of the payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to so comply or be exempt.  For purposes of this Agreement, to the extent required to be exempt from or comply with Section 409A, references to the “termination of your employment” or other similar phrases will be references to your “separation from service” within the meaning of Section 409A.  Any payments or benefits under this Agreement will be subject to all applicable tax withholdings.  Each payment and benefit to be paid or provided under Agreement is intended to constitute a separate payment under Section 1.409A-2(b)(2) of the Treasury Regulations.  The Corporation and the Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Employee under Section 409A.  In no event will the Corporation or any of its subsidiaries or affiliates have any liability or obligation to reimburse, indemnify, or hold harmless the Employee for any taxes, interest, or penalties that may be imposed, or other costs incurred, as a result of Section 409A.
(j)    Assignment by Corporation.  The Corporation may assign its rights under this Agreement to an affiliate, and an affiliate may assign its rights under this Agreement to another affiliate of the Corporation or to the Corporation provided, however, that no assignment shall be made if the net worth of the assignee is less than the net worth of the Corporation at the time of assignment.  In the case of any such assignment, the term “Corporation” when used in a section of this Agreement shall mean the Corporation that actually employs the Employee.
(k)    Amendment of Award Agreements.  The Corporation and the Employee agree that the provisions of this Agreement shall supersede any conflicting provisions of any equity-based compensation award agreement of the Employee, and the Corporation and the Employee agree to execute such further documents as may be necessary to amend any such agreement.  With respect to equity-based compensation awards granted on or after the date hereof, the provisions of this Agreement will apply to such awards except to the extent otherwise explicitly provided in the applicable equity-based compensation award agreement.

-12-

(l)    Headings.  The headings of sections herein are included solely for convenience of reference and shall not control the meaning or interpretation of any provisions of this Agreement.
(m)    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

-13-

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Corporation by its duly authorized officer, as of the day and year first above written.

QUANTUM CORPORATION         EMPLOYEE

By     /s/ Shawn D. Hall            /s/ James J. Lerner    
Name: Shawn D. Hall            Name: James J. Lerner    
Title: SVP, General Counsel            President and Chief Executive Officer    

June 22, 2018            June 25, 2018    
Date        Date

SIGNATURE PAGE OF CHANGE OF CONTROL AGREEMENT

EXHIBIT A
RELEASE OF CLAIMS
This Release of Claims Agreement (“Agreement”) is made by and between _________________________ (“Employee”) and Quantum Corporation (the “Corporation”) (collectively referred to as the “Parties” or individually referred to as a “Party”).
RECITALS
WHEREAS, Employee was employed by the Corporation;
WHEREAS, Employee signed a Proprietary Rights and Invention Agreement with the Corporation on [Date] (the “Confidentiality Agreement”);
WHEREAS, Employee and the Corporation entered into the Change of Control Agreement, dated [Date] (the “Change of Control Agreement”);
WHEREAS, Employee separated from employment with the Corporation effective [Date] (the “Separation Date”); and
WHEREAS, in connection with Employee’s involuntary termination from employment with the Corporation, Employee is eligible to receive certain severance benefits set forth in the Change of Control Agreement (the “Severance”);
WHEREAS, in consideration for the Severance, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Corporation and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Corporation;
NOW, THEREFORE, in consideration of the mutual promises made herein, the Corporation and Employee hereby agree as follows:
COVENANTS
1.Consideration.  The Corporation will provide Employee with Severance including (i) Base Compensation of $__________, Incentive Pay of $__________, and payment(s) or reimbursements, as applicable, relating to COBRA premiums under the terms of the Agreement.  In addition, the portion of any equity based compensation awards held by the Employee as of the Separation Date that are not yet vested automatically will become vested, with any performance‐based restrictions or requirements deemed waived.  (All payments made by the Corporation will be subject to appropriate withholding.)
2.    Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Corporation has paid or provided all 

salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee.
3.    Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Corporation and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on his/her own behalf and on behalf of his/her respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation:
(a)    any and all claims relating to or arising from Employee’s employment relationship with the Corporation and the termination of that relationship;
(b)    any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Corporation, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;
(c)    any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;
(d)    any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the Sarbanes-Oxley Act of 2002; the Immigration Control and Reform Act; the California Family Rights Act; the California Labor Code; the California Workers’ Compensation Act; and the California Fair Employment and Housing Act;
(e)    any and all claims for violation of the federal or any state constitution;

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(f)    any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;
(g)    any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and
(h)    any and all claims for attorneys’ fees and costs.
Employee agrees that the release set forth in this Section will be and remain in effect in all respects as a complete general release as to the matters released.  However, this release does not extend to any obligations incurred under this Agreement nor any equity or benefits plans where benefits remain post-termination.  This release also does not release claims that cannot be released as a matter of law, including, but not limited to, any Protected Activity (as defined below).  Any and all disputed wage claims that are released herein will be subject to binding arbitration as set forth herein, except as required by applicable law.  Employee represents that he/she has made no assignment or transfer of any right, claim, complaint, charge, duty, obligation, demand, cause of action, or other matter waived or released by this Section.
4.    [Acknowledgment of Waiver of Claims under ADEA.  Employee acknowledges that he/she is waiving and releasing any rights he/she may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.  Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled.  Employee further acknowledges that he/she has been advised by this writing that: (a) he/she should consult with an attorney prior to executing this Agreement; (b) he/she has twenty-one (21) days within which to consider this Agreement; (c) he/she has seven (7) days following his/her execution of this Agreement to revoke this Agreement; (d) this Agreement will not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Employee signs this Agreement and returns it to the Corporation in less than the 21-day period identified above, Employee hereby acknowledges that he/she has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  Employee acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Agreement on the Corporation’s behalf that is received prior to the Effective Date.  The parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period.]
5.    California Civil Code Section 1542.  Employee acknowledges that he/she has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A-3

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
Employee, being aware of said code section, agrees to expressly waive any rights he/she may have thereunder, as well as under any other statute or common law principles of similar effect.
6.    No Pending or Future Lawsuits.  Employee represents that he/she has no lawsuits, claims, or actions pending in his/her name, or on behalf of any other person or entity, against the Corporation or any of the other Releasees.  Employee also represents that he/she does not intend to bring any claims on his/her own behalf or on behalf of any other person or entity against the Corporation or any of the other Releasees.
7.    Application for Employment.  Employee understands and agrees that, as a condition of this Agreement, Employee will not be entitled to any employment with the Corporation, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Corporation.  Employee further agrees not to apply for employment with the Corporation and not otherwise pursue an independent contractor or vendor relationship with the Corporation.
8.    Trade Secrets and Confidential Information/Corporation Property.  Employee reaffirms and agrees to observe and abide by the terms of the previously executed Confidentiality Agreement.  Employee’s signature below constitutes his/her certification under penalty of perjury that he/she has returned all documents and other items provided to Employee by the Corporation, developed or obtained by Employee in connection with his/her employment with the Corporation, or otherwise belonging to the Corporation.
9.    No Cooperation.  Employee agrees that he/she will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so [or as related directly to the ADEA waiver in this Agreement].  Employee agrees both to immediately notify the Corporation upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order.  If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee will state no more than that he/she cannot provide counsel or assistance.  
10.    Protected Activity.  Nothing in this Agreement shall prohibit or impede Employee from engaging in any Protected Activity.  For purposes of this Agreement, “Protected Activity” shall mean communicating, cooperating or filing a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity, including, but not limited to, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making 

A-4

disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation; provided that, in each case, such communications and disclosures are consistent with applicable law.  Notwithstanding the foregoing, Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information (as defined in the Confidentiality Agreement or any other agreement between Employee and the Corporation relating to the protection of confidential information) to any parties other than the Governmental Entities.  Employee further understands that Protected Activity does not include disclosure of any Company attorney-client privileged communications.  Any language in the Confidentiality Agreement (or in any other agreement between Employee and the Corporation relating to the protection of confidential information) that conflicts with, or is contrary to, this paragraph is superseded by this Agreement.  Employee understands and acknowledges that pursuant to the Defend Trade Secrets Act of 2016 (A) an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made (i) in confidence to a Federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and (B) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.
11.    Mutual Nondisparagement and Nonsolicitation.  Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.  Employee will direct any inquiries by potential future employers to the Corporation’s human resources department. During the period of the Employee’s employment with the Corporation and for a period of one year thereafter, Employee, regardless of whether such termination is at the insistence of the Corporation or Employee, shall not, directly or indirectly, for his own account or the account of any other person or entity solicit, recruit, induce, or attempt to solicit, recruit,  or induce, directly or by assisting others (including but not limited to, any new employer) any person who is, or within twelve months of that time has been, employed by or otherwise engaged to perform services for the Corporation.  A general advertisement by Employee’s new employer that is not directed specifically at service providers of the Corporation shall not be deemed a violation of the preceding sentence.  The Corporation, its directors and officers agree to not disparage Employee.
12.    No Admission of Liability.  Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee.  No action taken by the Corporation hereto, either previously or in connection with this Agreement, will be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Corporation of any fault or liability whatsoever to Employee or to any third party.
13.    Costs.  The Parties will each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation of this Agreement.

A-5

14.    Arbitration.  Any claim or dispute, whether in contract, tort, statute or otherwise (including the interpretation and scope of this Arbitration Clause, and the arbitrability of the claim or dispute), between the Employee and the Corporation as well as their respective employees, agents, successors or assigns, which arises out of or relates to this Agreement will be resolved by neutral, binding arbitration and not by a court action.  Any claim or dispute is to be arbitrated by a single arbitrator from JAMS (www.jamsadr.com).
The arbitrator will be an attorney or retired judge and will be agreed upon by the parties within ten (10) business days of the demand for arbitration being filed with the arbitration organization.  If the parties are unable to select an arbitrator, then the arbitration organization will provide a list of five (5) arbitrators and each party will strike two names within five (5) business days and one of the remaining individuals will be appointed by the arbitration organization as the arbitrator within five (5) business days of receipt of the parties’ submissions.
Unless otherwise provided for by law, the Corporation will pay all costs and expenses of such arbitration, with the exception of any filing fees associated with any arbitration initiated by Employee, but only so much of the filing fees as Employee instead would have paid had Employee filed a complaint in a court of law.
The arbitrator will apply California substantive and procedural law to the proceeding, except to the extent Federal substantive law, including the Federal Arbitration Act, would apply to any claim.  The arbitration hearing will be conducted in Santa Clara County, California.  If the chosen arbitration organization’s rules conflict with this Arbitration Clause, then the provisions of this Arbitration Clause will control.
Discovery during arbitration will be conducted pursuant to the California Discovery Act.  All of the provisions of California Code of Civil Procedure section 1283.05 as well as any amendments or revisions thereto, are incorporated into this Agreement.  The arbitrator will follow the California Evidence Code as it relates to the trial of civil actions.  The parties are free to waive or modify any evidentiary rule or procedure with the consent of the arbitrator.
The arbitrator’s written award with findings of fact law will be issued in writing within thirty (30) days of the conclusion of the proceedings and will be final and binding on all parties, except that a party may request a new arbitration under the rules of the arbitration organization by a three‐ (3‐) arbitrator panel.  The appealing party requesting new arbitration will be responsible for the filing fee and other arbitration costs subject to a final determination by the arbitrators of a fair apportionment of costs.  Any court having jurisdiction may enter judgment on the arbitrator’s award.
The Parties retain any and all injunctive relief rights.  This Arbitration Clause will survive any termination of this contract.  If any part of this Arbitration Clause is deemed or found to be unenforceable for any reason, the remainder will remain enforceable.
THE PARTIES UNDERSTAND AND AGREE THAT THEY ARE WAIVING THEIR RIGHTS TO TRIAL BEFORE A JURY AND TO SUBMIT ANY CLAIMS TO BINDING ARBITRATION.

A-6

15.    Tax Consequences.  The Corporation makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on his/her behalf under the terms of this Agreement.  Employee agrees and understands that he/she is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Corporation and any penalties or assessments thereon.  Employee further agrees to indemnify and hold the Corporation harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Corporation for any amounts claimed due on account of (a) Employee’s failure to pay or delayed payment of federal or state taxes, or (b) damages sustained by the Corporation by reason of any such claims, including attorneys’ fees and costs.
16.    Section 409A.  It is intended that this Agreement comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended, any final regulations and guidance under that statute, and any applicable state law equivalent, as each may be amended or promulgated from time to time (“Section 409A”), and any ambiguities or ambiguous terms herein will be interpreted to so comply or be exempt from Section 409A.  Each payment and benefit to be paid or provided under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.  Payments and benefits under Section 1 of this Agreement will be made in accordance with Sections 3 and 11 of the Change of Control Agreement.  In no event will the Corporation reimburse Employee for any taxes or other costs that may be imposed on Employee as a result of Section 409A.
17.    Authority.  The Corporation represents and warrants that the undersigned has the authority to act on behalf of the Corporation and to bind the Corporation and all who may claim through it to the terms and conditions of this Agreement.  Employee represents and warrants that he/she has the capacity to act on his/her own behalf and on behalf of all who might claim through him/her to bind them to the terms and conditions of this Agreement.  Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.
18.    No Representations.  Employee represents that he/she has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement.  Employee has not relied upon any representations or statements made by the Corporation that are not specifically set forth in this Agreement.
19.    Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision or portion of provision.
20.    Attorneys’ Fees.  [Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA,] in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party will be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court 

A-7

fees, costs and reasonable attorneys’ fees incurred in connection with such an action (except to the extent specifically provided in Section 12(g) of the Change of Control Agreement).
21.    Entire Agreement.  This Agreement represents the entire agreement and understanding between the Corporation and Employee concerning the subject matter of this Agreement and Employee’s employment with and separation from the Corporation and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Employee’s relationship with the Corporation, with the exception of the Confidentiality Agreement and the Change of Control Agreement, except as modified herein.
22.    No Oral Modification.  This Agreement may only be amended in a writing signed by Employee and a duly authorized representative of the Corporation.
23.    Governing Law.  This Agreement will be governed by the laws of the State of California, without regard for choice-of-law provisions.  Employee consents to personal and exclusive jurisdiction and venue in the State of California.
24.    Effective Date.  Employee understands that this Agreement will be null and void if not executed by him/her within twenty one (21) days.  Each Party has seven (7) days after that Party signs this Agreement to revoke it.  This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”). [OR, if Employee is under age 40:][Employee understands that this Agreement will be null and void if not executed by him/her within seven (7) days.  This Agreement will become effective on the date it has been signed by both Parties (the “Effective Date”).]
25.    Counterparts.  This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.
26.    Voluntary Execution of Agreement.  Employee understands and agrees that he/she executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Corporation or any third party, with the full intent of releasing all of his/her claims against the Corporation and any of the other Releasees.  Employee acknowledges that:
(a)    he/she has read this Agreement;
(b)    he/she has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his/her own choice or has elected not to retain legal counsel;
(c)    he/she understands the terms and consequences of this Agreement and of the releases it contains; and
(d)    he/she is fully aware of the legal and binding effect of this Agreement.

A-8

(Signature page to follow)

A-9

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.
[EMPLOYEE NAME], an individual

Dated:  ________________, 20__                 
[Employee Name]

QUANTUM CORPORATION

Dated:  ________________, 20__        By         
[Name]
[Title]

A-10Blueprint

 

Exhibit 10.73

 

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT
(“Agreement”) is made and
entered into as of this 26th day of June, 2018 (the
“Effective Date”), by and between Level Brands, Inc., a
North Carolina corporation, its subsidiary Level H & W, LLC a
North Carolina limited liability company, together
(“Licensor”), and Boston Therapeutics, Inc., a Delaware
corporation (“Licensee”). Licensor and Licensee
sometimes collectively referred to herein as “Parties”
or, individually, as “Party.”

 

RECITAL

 

Licensor has the exclusive rights to sublicense
the kathy ireland Health & WellnessTM
trademark (“Licensed
Marks”) and Licensor desires to grant the Licensee the right
and license to use the Licensed Marks in the marketing, developing,
manufacturing, selling and distributing of therapies, therapeutics,
supplements and diagnostics. It
is understood that Licensor will be non-exclusive to Licensee and
that Licensor owns all kathy ireland Health &
WellnessTM
related intellectual property.
Licensee owns its intellectual property. Neither party will
interfere or dispute the ownership of each other’s respective
intellectual property. Licensee is an importer, manufacturer,
distributor and/or seller of its products and desires to use the
Licensed Marks.

 

AGREEMENT

 

In
consideration of the mutual promises herein contained, it is hereby
agreed:

 

1. 

GRANT
OF LICENSE

 

 

License Grant. Upon the terms
and conditions set forth herein, Licensor hereby grants to Licensee
the non-transferable right, license, and privilege, of using the
Licensed Marks solely for the sale, marketing and distribution of
Sugardown and those products of Licensee which are approved in
writing by Licensor and the Licensee (“Licensed
Products”), through the channels of distribution in the
Territory (as defined below) during the Term, and the
non-exclusive, non-transferable right, license, and privilege
of
using the Licensed Marks
solely upon and in connection with the
manufacture of Licensed Products in the
Territory. All proposed channels of distribution and
distribution outlets must be submitted in advance to Licensor and
shall be subject to Licensor’s prior written approval.
Licensor agrees to assist Licensee in establishing agreed upon
distribution and sales sub-contractors subject to section 1.4. The
Licensor agrees that the Licensee may continue to sell the Licensed
Products without the Licensed Marks within the
Territory.

 

Term. The term of this Agreement shall commence on the
Effective Date as set forth above and end on the seventh
anniversary of the date hereof, plus any extensions or renewals
(the “Term”); provided, that after such seventh
anniversary or any extension or renewal, the Term shall be
automatically extended for an additional two year periods unless
terminated by either Party by providing notice to the Licensee not
less than ninety (90) days prior to the expiration of any such
term, extension or renewal.  

 

Territory. The territory shall
be all domestic and international jurisdictions in which Licensee
is in compliance with all applicable jurisdictional laws
(“Territory”).

 

No Sub-License. Licensee shall
not assign or sub-license the use of the Licensed Marks to any
third party without prior written approval by Licensor, and such
right is expressly withheld from this Agreement. In the event
Licensor approves a sub-license to a third party, the Parties shall
mutually agree upon the terms and conditions of said sub-license,
including without limitation the royalty rate, in a separate
writing signed by the Parties, including but not limited to a
sublicense with a sales and distribution
contractor.

 

Competing Brands. Licensee will
not be permitted to enter into any other branded relationship
without the express prior written approval of Licensor. Licensor
will not be permitted to enter into any other branded relationship
without the express prior written approval of Licensee for products
having the following attributes: (a) food supplements for
regulation of post-prandial blood sugar, and (b) non-systemic
chewable tablets for prevention or delay of diabetes (the
“Licensee Business”).

 

Licensee Obligations. During
the Term, the Licensee agrees to (a) comply with the Code of
Conduct attached hereto as Exhibit A
and incorporated herein by reference,
and (b) fully adopt, as well as meaningfully contribute to, the
following Millennium Development Goal(s) (all of which are attached
hereto as Exhibit C
and incorporated herein by reference)
(“Licensee Millennium Development Goal(s)”). Licensee
agrees to become a member and utilize Dependable Solutions, a
product approval and royalty reports service, and ireland pay, a
credit card process service or any similar web platform as may be
utilized by Licensor from time to time as a means of conducting
brand business and coordinating with Licensor and other licensees.
Licensee agrees to become a member of Send Out Cards within 30 days
of the execution of this Agreement. Licensee will use Send Out
Cards as a powerful marketing tool to help communicate our
partnership and promote sales. 

 

 

-1-

Boston
Therapeutics

 

2. 

LICENSING,
ROYALTY AND OTHER FEES

 

Marketing Fee. Licensee shall
pay Licensor the following marketing related fees: (a) Eight
Hundred and Fifty Thousand Dollars (US$850,000) for the Video
Content and Electronic Press Kit services set forth on
Exhibit
D (the “Services”)
in the form of (a) a Promissory Note for Four Hundred and Fifty
Thousand Dollars (USD $450,000) in the form attached hereto
as Exhibit
E, and (b) a number of shares
of Licensee common stock (the “Shares”) that would
equal Four Hundred Thousand Dollars (US$400,000), using the closing
trading price on the prior day to the Effective Date. Licensee
shall grant Licensor unlimited piggy-back registration rights on
all of the Shares issued hereunder for a period of six months from
the Effective Date.

 

Royalty. Commencing on the
Effective Date, Licensee shall pay the Licensor royalties in U.S.
Dollars, an amount equal to (a) Licensed Mark Royalty Rate (as
defined below) of 100% the Gross Licensed Marks Sales (as defined
below), and (b) one percent of Revenues (as defined below) (amounts
under (a) and (b) above, collectively, the “Royalty”);
The term “Licensed Mark Royalty Rate” shall mean five
percent (5%) of the first Ten Million Dollars (US$10,000,000) in
Gross Licensed Marks Sales, seven and one half percent (7.5%) of
the Gross Licensed Marks Sales between Ten Million Dollars
(US$10,000,000) and Fifty Million Dollars (US$50,000,000) and ten
percent (10%) on any Gross Licensed Marks Sales in excess of Fifty
Million Dollars (US$50,000,000); the term “Revenues”
shall mean the gross amount billed for worldwide product sales of all products of
Licensee at the time the Agreement is executed (exclusive of any
refunds, return allowances, sales, use or value added tax (VAT)),
minus any Gross Licensed Marks Sales; and the term
“Gross Licensed Marks
Sales” shall mean the gross amount billed for all Licensed
Products sold under the Licensed Marks (exclusive of any refunds,
return allowances, sales, use or value added tax (VAT)). No other
costs incurred in the manufacturing, selling, advertising, and/or
distribution shall be deducted from Revenues or Gross Licensed
Marks Sales, and both shall be determined in accordance with
generally accepted accounting principles established and maintained
by the U.S. Financial Accounting Standards
Board.

 

Licensor Promotional Obligations. For quarterly performance of the Licensor
Promotional Obligations services as set forth in
Exhibit
D, Licensee will pay Licensor
within fifteen (15) days of the end of each calendar quarter during
period commencing on July 1, 2018 and ending June 30, 2020, as
follows: (a) issue a number of Shares (using the closing trading
price of the Shares on the last day of such calendar quarter) equal
to the Sales Target (as defined below), multiplied by 11,250,000
(450,000 x 25) which in no event will be greater than $100,000 per
quarter, and (b) payment in cash of the Sales Target multiplied by
$450,000 which in no event will be greater than 100,000 shares of
common stock per quarter. Licensee, in its sole discretion, may pay
such fee set forth under Section 2.3(a) in cash in lieu of Shares.
For purposes hereof, “Sales Target” shall mean the
Gross Licensed Marks Sales for such applicable quarter divided by
US$2,500,000. For illustration purposes, if the Gross Licensed
Marks Sales for a given quarter is US$1,000,000, and the closing
price on the last day of such quarter is $.05 per share, then the
number of Shares to be so issued under (a) above shall be 4,500,000
($1,000,000 / $2,500,000 x 11,250,000), and the cash payment under
(b) above shall be $180,000 ($1,000,000 / $2,500,000 x $450,000),
which shall be limited as set forth above.

 

Royalty Payments. Within
fifteen (15) days after the end of each month, Licensee shall
furnish to Licensor a complete sales and royalty report certified
to be accurate by the Chief Financial Officer of Licensee or by
some other authorized designee of Licensee showing the number,
description, and Gross Sales Price of the Licensed Products
distributed and/or sold by Licensee during the preceding month, as
well as the number of Licensed Products in inventory at the
beginning and end of the month along with payment of the royalties
due which shall be sent by wire transfer to the following
account:

 

Domestic Wire /
Routing #: 121000248

Account
Name: Level Brands, Inc.

Account
#: 5842344581

Bank
Name: Wells Fargo Bank

 

Royalty Report; Late Fees. For
this purpose, Licensee shall use a sales and royalty report form
acceptable to Licensee. Such report shall be furnished to Licensor
whether or not any of the Licensed Products have been sold during
the preceding month, and shall specifically include what
contributions have been made during such period to the Licensee
Millennium Development Goal(s), the form of such contribution and,
with respect to financial contributions, the basis upon which it
was determined. Licensee shall tender the report of the sales and
royalty report in Excel spreadsheet format to Licensor, separated
by each Licensed Product and sent to Level Brands, Inc., 4521
Sharon Rd., Ste. 450, Charlotte, NC 28211, with a copy to:
mark@levelbrands.com. Any amounts not paid to Licensor when due
under this Agreement shall bear a late payment charge on the unpaid
balance at the rate of 1.5% per month, compounded, or the maximum
amount permitted by law, whichever is less.

 

 

-2-

Boston
Therapeutics

 

 

Subcontracting and Delegation.
Licensor may subcontract, delegate or assign any its rights or
subcontract or delegate any of its duties or obligations hereunder
to any entity with which it is affiliated, related or shares common
ownership (a “Delegated Entity”), and Licensee agrees
to allocate or pay any compensation owed or accrued to Licensor
under Section 2 to any Delegated Entity as directed by Licensor. No
such subcontract, delegation or assignment to any Delegated Entity
shall relieve Licensor of responsibility for the due and full
performance hereof. Licensor shall be liable to Licensee for all
acts and omissions of any Delegated Entity in performing any duties
hereunder.

 

 

Expense Reimbursement. During the Term of this
Agreement, the Licensor may also be retained to provide, on a
non-exclusive basis, strategic brand marketing advisory services to
the Licensee to be mutually agreed to from time to
time. The Licensor shall be reimbursed
for all out of pocket costs and expenses incurred by it in the
performance of the strategic brand marketing advisory services that
are mutually agreed upon, subject to Licensees prior written
approval which will not be unreasonably withheld, to the Licensee
hereunder up to Two Hundred and Fifty Thousand Dollars
(US$250,000), at a cost-plus twenty percent (20%)
basis.

 

3. 

ACCOUNTING

 

Licensee
agrees to keep accurate books of account and records covering all
transactions relating to the license hereby granted, and Licensor
and its duly authorized representatives shall have the right two
(2) times per year after giving reasonable notice at all reasonable
hours of the day to an examination of said books of account and
records relating to Licensee’s performance under the
Agreement, and shall have free and full access thereto for said
purposes and for the purpose of making extracts therefrom. Upon
request of Licensor, which shall not be more than once per year,
Licensee shall furnish to Licensor a detailed statement by an
independent certified public accountant showing the number,
description, and Gross Sales of the Licensed Products covered by
this Agreement distributed and/or sold by Licensee to the date of
Licensor’s demand. Each calendar year in which this Agreement
is in effect, and after expiration or termination of this
Agreement, no more than once per year, Licensor shall be entitled
to an independent audit of and be given access to Licensee’s
account books, records, invoices and other pertinent data by
Licensor or its designated representative during normal business
hours. The cost of the audit shall be borne by Licensor unless the
audit reveals that Licensee understated sales and or royalties of
Licensed Products by more than five percent (5%), in which case
Licensee shall be required to pay all Licensor’s costs of the
audit.

 

4. 

QUALITY
ASSURANCE

 

Quality of Licensed Products.
The quality of the Licensed Products shall be consistent with or
exceed the average of similar products manufactured, distributed,
and/or sold by Licensee, shall serve to enhance Brand recognition
of the Licensed Products to the mutual benefit of the Parties, and
shall be suitable for the use for which they are intended. Licensee
agrees to provide a reasonable number of samples of the Licensed
Product to Licensor at no cost upon request for quality assurance,
and provide Licensed Products to Licensor at cost for promotional
purposes (not for resale).

 

Licensor Approval. All Licensed
Products developed, manufactured and sold hereunder, and all
labels, hang tags, packaging, catalogs, brochures, publications,
printed matter, advertising, signs, promotional displays, websites,
webpages, video and sound recordings, online social media pages and
other forms of publicity material for the Licensed Products, shall
be in English and subject to Licensor’s written approval in
advance of use, distribution, marketing or
sale.

 

Licensee Approval. The Licensor
will perform the Services in compliance with all applicable laws.
Licensor will not make or provide any representations, warranties
or statements about the Licensee or its products which are not
based on the marketing and background materials provided to the
Licensor by the Licensee; provided, that it is understood and
agreed that Licensor may discuss the Licensee and its products in
TV interviews and through other immediate social media in a
generally positive manner. All written materials are subject to
Licensee’s written approval in advance of use, distribution,
marketing or sale.

 

5. 

DISPLAY;
LABELING; PROMOTIONAL MATERIAL

 

IP Notices. Licensee agrees
that it will cause to appear on each Licensed Product manufactured,
sold, and/or distributed under this Agreement and on or within all
advertising, marketing, promotional, or display material bearing
the Licensed Marks, the appropriate trademark and copyright
notices, markings or designations requested by Licensor. In the
event any Licensed Product is distributed and/or sold in a carton,
container, packing or wrapping material bearing the Licensed Marks,
such notices shall also appear upon the said carton, container,
packing or wrapping material. Licensee agrees to remove any product
for sale, regardless of location, which so fails to include the
proper notices under this Section 5.1 and such failure shall be
deemed a material breach hereof.

 

 

-3-

Boston
Therapeutics

 

Promotions. No advertising,
marketing, promotional, and display materials, or other artwork
depicting the Licensed Marks or Licensed Product shall be used
without prior written approval by Licensor. Licensee agrees that it
will only run full page advertisements in trade publications to
ensure retail recognition for the Brand. Licensee will use its best
efforts to convey to the market that it is a licensee of the Brand,
including but not limited to placing signage depicting the Brand
prominently at Licensee's corporate offices and showrooms, and on
Licensee's corporate stationery, point of sale, marketing and other
materials. The Parties further agree that all artwork and designs
involving the Licensed Marks shall be produced under appropriate
“work for hire” provisions, or are hereby assigned to
and shall remain the property of Licensor, notwithstanding their
creation by Licensee or others, and any such parties creating such
materials will execute the necessary valid agreements to convey the
ownership and copyrights to these items to
Licensor.

 

6. 

PHOTOGRAPHY

 

All
photo shoots, photography, designs and media will be directed by
Licensor’s Global Creative Director, Jon Carrasco. The
photographs resulting from any photo session(s) shall be contracted
for under “work for hire” provisions and all rights,
including without limitation copyright, to the photos, negatives,
and any other tangible materials bearing Ms. Ireland’s image
or relating to said photo session(s), shall be the property of
Licensor and are hereby assigned to Licensor. Guild/Union
Requirements (SAG-AFTRA) – Kathy Ireland is a union member
and Licensee will make payments accordingly for any audio or visual
recordings. With respect to any expenses associated therewith, to
the extent not included in the Services or in Section 2.7, such
expenses shall subject to prior written prior approval of
Licensee.

 

7. 

LICENSOR’S
RIGHTS AND PROTECTIONS

 

Proprietary to Licensor.
Licensor has the exclusive rights to sublicense the licensed marks.
Licensee agrees that during the term of this Agreement, or
thereafter, it will not register or attempt to register any of the
Licensed Marks, nor will Licensee form or incorporate any entity
under a name that includes the Licensed Marks. Licensee will not
attack the title or any rights of Licensor in and to the Licensed
Marks. Licensee further agrees to cooperate fully and in good faith
with Licensor for the purpose of securing and preserving
Licensor’s rights in and to the Licensed Marks. Licensee
acknowledges that Licensor has sole and exclusive ownership of all
right, title, and interest in and to the Licensed Marks and any
registrations that have been issued or may be issued thereon.
Nothing contained in this Agreement shall give Licensee any right,
title or interest in or to the Licensed Marks except for the rights
expressly licensed by this Agreement, and subject to its terms and
conditions. Adaptations and modifications of Licensed Marks
prepared under this Agreement shall be included as part of the
Licensed Marks, including, without limitation, Licensor’s
ownership thereof.

 

7.2   Pre-Existing
Intellectual Property . Each
Party shall continue to own all rights, title and interest
(including, without limitation, all copyrights, trade secrets,
patents, trademarks, and any other intellectual property or
proprietary rights) relating to its business that existed prior to
the Effective Date (“Pre-Existing IP”). No right,
title, or interest in or to any of Pre-Existing IP of a Party is
transferred or assigned to the other Party. Except for the limited
license granted in Section 1, neither Party grants to the other
Party any licenses, by implication or otherwise, to any of its
Pre-Existing IP.

 

7.3 Not an Exclusive
License. Nothing in this
Agreement shall be construed to prevent Licensor from granting any
other license for the use of the Licensed Marks or from utilizing
the Licensed Marks in any manner whatsoever;
provided, however, that Licensor shall not license or independently
utilize the Licensed Marks in connection with any business that is
similar to the Licensee Business during the Term of this
Agreement.. Licensee agrees
that rights not specifically granted to Licensee are reserved by
Licensor and may be freely exploited by Licensor without
limitation.

 

7.4 Registrations.
All registrations for intellectual property, Internet domain names
and social media user/screen names in the Licensed Marks are to be
applied for and obtained exclusively in Licensor’s name.
Licensee shall not file or register any intellectual property
applications or seek any Internet domain name and/or social media
user/screen name registration in the Licensed Marks, Licensed
Products or any derivations, improvements, variations or
modification thereof, without Licensor’s prior written
approval. Licensee shall notify Licensor, or its designated
representative, prior to entering into any agreement with any
individual, company or business, for sales outside the United
States of any Licensed Product, to permit the timely filing of
foreign and/or international trademark and copyright applications,
or other intellectual property protection, covering the Licensed
Marks, in Licensor’s sole discretion. Licensee agrees to
cooperate fully and in good faith with Licensor for the purpose of
securing and preserving Licensor’s rights in and to the
Licensed Marks. In the event there has not been a previous
registration of any Licensed Mark and/or any material relating
thereto for a particular Licensed Product, Licensor may register
and maintain, at Licensee’s expense if for a Licensed
Product, trademarks and/or service marks in the appropriate
class(es) and/or copyrights in the name of Licensor. Licensee is
not permitted to register any copyright, trademark, and/or service
mark on behalf of Licensor. It is further agreed that nothing
contained in this Agreement, and no act or omission by Licensor
and/or by Licensee shall be construed as an assignment or grant to
Licensee of any right, title, or interest in or to the Licensed
Marks, it being understood that all rights relating thereto are
reserved by Licensor, except for the license hereunder to Licensee
of the right to use and utilize the Licensed Marks only as
specifically and expressly provided in this
Agreement.

 

 

-4-

Boston
Therapeutics

 

8. 

INDEMNIFICATION
AND REPRESENTATIONS

 

Licensor Indemnification.
Licensor shall defend, indemnify, and hold Licensee and its
affiliates, and their officers, directors, employees, managers,
owners, agents and representatives harmless against any claims or
suits, demands, losses, injuries, liabilities costs, judgments,
arbitration awards, license fees, settlement, damages and expenses
(including reasonable attorneys’ fees and costs, whether or
not any legal proceeding is commenced) (“Losses”) for
trademark infringement arising solely out of the validity of the
rights to the Licensed Marks and from Licensee’s use of the
Licensed Marks as granted herein, provided that prompt written
notice is given to Licensor within ten (10) days of any such claim
or suit, and provided, further, that Licensor shall have the option
to undertake and conduct the defense of any suit so brought, and no
settlement of any such claim or suit is made without the prior
written consent of Licensor. Licensor’s indemnification under
this Section 8.1 shall be apportioned and limited to only the
portion of, and extent that, such Losses are, or are claimed to be,
proximately caused by or attributable specifically to
Licensee’s use of Licensed Marks in a manner permitted by
this Agreement. It is further agreed that Licensor reserves the
right, in its sole discretion, to select counsel to defend any such
claims. For purposes of this Section 8, the term
“Licensor” shall mean Licensor and, without limitation,
any of its agents, employees, servants, representatives, parents,
subsidiaries, affiliates, officials, directors, officers,
shareholders, owners, attorneys, divisions, branches, units,
affiliated organizations, successors, predecessors, contractors,
assigns, and all persons acting on their behalf, past or
present.

 

Licensee Indemnification.
Licensee shall defend, indemnify, and hold Licensor and its
affiliates, and their officers, directors, employees, managers,
owners, agents and representatives harmless against any and all
actions, claims, demands, lawsuits, loss, costs, damages,
judgments, liabilities, license fees, settlement or expenses
incurred, claimed, obtained, or sustained, including without
limitation attorneys’ fees and costs, of any nature
whatsoever, whether in law or in equity, including without
limitation claims relating to or allegedly relating to the design,
manufacture, sale, purchase, use, advertising, marketing, and/or
distribution of any Licensed Product, whether for personal injury,
product liability, intellectual property infringement, dilution,
misappropriation or otherwise. Licensor reserves the right to
select counsel to defend and/or bring any such claims, and Licensee
shall solely be responsible for any and all attorneys’ fees,
costs, and expenses relating to any and all such actions. Licensee
shall provide Licensor with prompt written notice of any lawsuits
or threatened lawsuits, or other significant developments,
investigations, claims, or final refusals in which Licensee is or
may be named as a party or for which Licensee is obligated or has
agreed to indemnify any party, and Licensee shall thereafter
provide Licensor with periodic written updates concerning relevant
developments in any such lawsuits as they
arise.

 

Licensed Products. Licensor
makes no representations or warranties with respect to the design,
manufacture, sale, purchase, use, marketing, and/or distribution of
any Licensed Product manufactured, sold, and/or distributed by
Licensee and disclaims any liability arising out of the design,
manufacture, sale, purchase, use, marketing, and/or distribution of
any Licensed Product, and any such express or implied warranties
are hereby disclaimed and Section 8.2 shall
apply.

 

Licensee Representations and Warranties. Licensee represents and warrants to Licensor
that: (i) Licensee has the full power and authority to enter into
this Agreement on behalf of Licensee and to perform all
Licensee’s material obligations pursuant to this Agreement,
and that the Licensed Products manufactured, sold, and/or
distributed by Licensee under this Agreement shall be suitable for
the purpose for which they are intended to be used and shall comply
with all applicable Federal, State, and local laws, and industry
standards, (ii) Licensee will not harm or misuse the Licensed
Property or bring the Licensed Marks into disrepute, (iii) except
as specifically provided in this Agreement, Licensee will not
create any expenses chargeable to Licensor or Ms. Ireland
without the express prior written approval of Licensor, (iv) all
Licensed Products (and the content contained or used in the
Licensed Products) designed, developed, marketed, distributed,
published, performed or sold by Licensee pursuant to this Agreement
do not, and will not, infringe any intellectual property right or
any personal right of any third party, and (v) Licensee will not
knowingly permit, do or commit any act or thing that would degrade,
tarnish or deprecate or disparage the Licensed Property or
Licensor’s or Ms. Ireland’s public image in society or
standing in the community, or prejudice Licensor or Ms. Ireland and
that it will terminate such activities promptly upon written
notice, and failure to do so constitutes a material breach of this
Agreement. Licensee acknowledges and agrees that there are no
warranties, guarantees, conditions, covenants, or representations
by Licensor as to marketability, fitness for a particular purpose,
or other attributes of the Licensed Products, whether express or
implied (in law or in fact), oral or written.

 

Definition of “Licensor”. For purposes of this Section 8, the term
“Licensor” shall mean Licensor and, without limitation,
any of its agents, employees, servants, representatives, parents,
subsidiaries, affiliates, officials, directors, officers,
shareholders, attorneys, divisions, branches, units, affiliated
organizations, successors, predecessors, contractors, assigns, and
all persons acting by, through, under, or in concert with them,
past or present, specifically including Ms. Ireland, kathy ireland
Worldwide, any Delegated Entity, kathy ireland LLC,
Sterling/Winters Company, ACDC, LLC, Jardin du Jour, LLC, Moretz
Marketing, LLC their executives and employees.

 

 

-5-

Boston
Therapeutics

 

9. 

INSURANCE

 

Licensee represents that it has obtained, and
agrees to maintain, at its own expense, in full force and effect at
all times during which the Licensed Products are being
manufactured, sold, and distributed, insurance for bodily injury,
advertising injury, property damage, and product liability from a
recognized insurance company approved by Licensor, which is
qualified to do business in the State of California, providing
protection at least in the amount of $5,000,000 per occurrence and
$5,000,000 in the aggregate for Licensor and for Licensee against
any actions, claims, demands, lawsuits, loss, costs,
attorneys’ fees, damages, judgments, and liabilities of any
nature whatsoever relating to the Licensed Products. As proof of
such insurance, a fully paid certificate of insurance naming
Licensor as Licensee shall submit an insured party to Licensor for
Licensor’s prior written approval before any Licensed Product
is manufactured, sold, or distributed. Any proposed change in
certificates of insurance shall be submitted to Licensor for its
prior written approval. Licensor shall be entitled to a copy of the
prevailing certificate of insurance, which shall be furnished to
Licensor by Licensee. The certificate(s) shall conform to the
language requirements set out in Exhibit B
attached hereto.

 

10. 

INSOLVENCY

 

If
Licensee files a petition in bankruptcy or is adjudicated a
bankrupt or if a petition in bankruptcy is filed against Licensee,
or if it becomes dissolved, or becomes insolvent or unable to pay
or discharge its liabilities in the ordinary course of business, or
if Licensee assigns the whole or any substantial part of its assets
or undertakings for the benefit of creditors or makes an assignment
for the benefit of its creditors or any similar arrangement
pursuant to any federal or state law, compulsory or voluntarily, or
if a receiver or other similar officer is appointed for the whole
or any part of the assets or undertakings of Licensee or its
business, or if Licensee stops payment to its creditors generally,
or ceases or threatens to cease to carry on its business or any
substantial part thereof, or if Licensee merges or consolidates
with or into any other corporation, or directly or indirectly sells
or otherwise transfers, sells, or disposes of all or a substantial
portion of its business or assets, or if a third party who does not
own stock acquires a majority of the voting stock of Licensee,
Licensor may terminate this Agreement by giving notice to Licensee
of its intention to terminate and such termination shall be
effective immediately. In the event this Agreement is so
terminated, Licensee, its receivers, representatives, trustees,
agents, administrators, successors, and/or assigns shall have no
right to sell, exploit, or in any way deal with or in any Licensed
Products covered by this Agreement or any related advertising,
marketing, promotional, and display materials, including without
limitation cartons, containers, packing, and wrapping materials,
except with and under the special consent and instructions of
Licensor in writing, which they shall be obligated to follow. In
the event this Agreement is so terminated under this Section 10,
Licensee, its receivers, representatives, trustees, agents,
administrators, successors, and/or assigns shall have no right to
sell, exploit, or in any way deal with or in any Licensed Products
covered by this Agreement or any related advertising, marketing,
promotional, and display materials, including without limitation
cartons, containers, packing, and wrapping materials, except with
and under the special consent and instructions of Licensor in
writing, which they shall be obligated to follow.

 

11. 

TERMINATION

 

Material Breach. Except as
otherwise provided herein, in the event either party materially
breaches this Agreement, the non-breaching party shall have the
right to terminate this Agreement upon thirty (30) days’
notice in writing, and such notice of termination shall become
effective unless the breaching party shall remedy the breach within
the thirty (30) day period to the reasonable satisfaction of the
non-breaching party. Failure to pay any amounts owed hereunder
shall be deemed a material breach hereof.

 

Effect of Termination.
Termination of this Agreement shall be without prejudice to any
rights, which Licensor may otherwise have against Licensee and all
amounts owed hereunder including the prorated earned Marketing
Fee’s, as of the termination hereof, shall become immediately
due and payable, and all rights and licenses granted hereunder
shall cease and revert to Licensor. Upon termination, Licensee
shall immediately cease and desist from using the Licensed Marks in
any way and return any confidential information to
Licensor.

 

Force Majeure. The Parties
shall be released from their obligations hereunder, and this
Agreement shall terminate in the event governmental regulations or
state or national emergency or war or causes beyond the control of
the Parties render performance impossible, and one Party so informs
the other in writing of such causes and its desire to be so
released. In such event, all royalties on sales and all other
monies due, theretofore made shall become immediately due and
payable to Licensor.

 

 

-6-

Boston
Therapeutics

 

Change of Control. In the event
Licensee or any of its subsidiaries incurs or enters into any
agreement pursuant to which a Change of Control (as defined below)
would occur, Licensee shall provide Licensor notice of such Change
of Control. Following such notice, at the option of Licensor and
upon written notice to Licensee provided within 30 days following
Licensee’s provision of notice of the Change of Control to
Licensor (the “Change of Control Termination Notice”),
this Agreement, together with the Royalty paid to Licensor under
Section 2 shall immediately terminate and Licensor shall be paid,
in lieu thereof, a one-time, lump sum aggregate payment equal to
the cumulative Royalties paid to Licensor over the previous
trailing 12-month period. The lump sum payment shall be paid to
Licensor within 30 days of the occurrence of the Change of Control.
For purposes hereof, “Change of Control” means (a) any
consolidation or merger of such entity in which the entity is not
the continuing or surviving entity, or pursuant to which the shares
are converted to cash, other securities or other property, other
than a consolidation or merger of the entity in which the holders
of the entities shares immediately prior to the consolidation or
merger hold more than 50% of the voting securities of the
continuing or surviving entity immediately after the consolidation
or merger, or (b) any sale, lease, exchange or other transfer (in
one transaction or in a series of transactions and not in the
ordinary course of business) of all or substantially all of the
entities assets, (c) a sale of fifty percent (50%) or more of the
then outstanding voting securities of the entity to one party, or
(d) any other event, pursuant to which the members of the Board of
Directors (or similar governing body) who were elected prior to the
occurrence no longer constitute a majority of the members of such
governing body. Notwithstanding the above, any conveyance, transfer
or grant of security title to or a security interest in any goods,
accounts, inventory, general intangibles or other assets of such
entity to secure the obligations of the entity or any of its
subsidiaries, or the exercise of any rights or remedies by such
entity after a default of indebtedness, shall not constitute a
“Change of Control” as used herein.

 

12. 

NOTICES

 

Any
notice, communication, statement, payment, or legal service of
process required or permitted under this Agreement shall be in
writing and shall be effective when hand delivered; or on the date
when the notice, communication, statement, payment, or legal
service of process is transmitted by confirmed electronic facsimile
(with a confirmation copy sent by mail); or the day after the
notice, communication, statement, payment, or legal service of
process is sent by reputable overnight air courier service. All
such communications shall be sent to the Parties at the notice
addresses listed below or to such other persons and the Parties to
each other may designate notice addresses as in
writing.

 

Licensor:             
Level Brands, Inc.

4521
Sharon Road, Suite 450

Charlotte,
NC 28211

Attention:
Mark Elliott - CFO

Email: mark@levelbrands.com

 

Copy
to:               
Paul Porter

4521
Sharon Road, Ste. 450

Charlotte,
NC 28211

Email: paul@levelbrands.com

 

And

 

Erik
Sterling

PO
Box #1410

Rancho
Mirage, CA 92270

Facsimile:
310 557-1722

Attention:
Erik Sterling

Email: esterling@sterlingwinters.com

 

If to
Licensee:      Boston Therapeutics, Inc.

354
Merrimack Street, #4

Lawrence,
MA 01843

Attention: Carl
Rausch, CEO

Email:
Carl.Rausch@bostonti.com

 

Copy
to:               
Fleming PLLC

30 Wall Street, 8th
Floor

New
York, New York 10005

Attention:
Stephen Fleming, Esq.

Email:
smf@flemingpllc.com

 

 

-7-

Boston
Therapeutics

 

13. 

MISCELLANEOUS

 

Independent Contractor.
Licensee is an independent contractor with respect to Licensor.
Nothing contained herein shall be deemed to create an agency, joint
venture, franchise, or partnership relation between the Parties,
and neither Party shall so hold itself out.

 

Assignability. This Agreement
shall not be assignable by either Party without the prior written
consent of the other.

 

Amendment. Except as otherwise
provided herein, no agreement or understanding purporting to add to
or to modify the terms and conditions of this Agreement shall be
binding unless agreed to by the Parties in writing. Any terms and
conditions set forth in any forms used by the Parties, which are in
conflict with the terms and conditions of this Agreement, shall be
void and have no effect.

 

Waiver. It is agreed that no
waiver by either Party hereto or any breach or default of any of
the provisions set forth herein shall be deemed a waiver as to any
subsequent and/or similar breach or default.

 

Governing Law. This Agreement
shall be construed in accordance with and the laws of the State of
California which shall govern all disputes relating hereto without
giving effect to any conflicts of law provisions. The Parties agree
that any and all disputes, controversies or claims arising out of,
regarding, or in any way relating to the interpretation,
application, or enforcement of this Agreement, or any matter
reasonably related thereto, shall be handled by way or arbitration
and administered by and in accordance with the JAMS streamlined
Arbitration Rules and Regulations (the ''JAMS Rules '') of the
Judicial Arbitration and Mediation Service in effect at the time of
any such proceedings. Such arbitration shall be the sole,
exclusive, and final remedy for resolving any such claims and
disputes. Judgment on the final award rendered by the arbitrator
may be entered into in any court of competent jurisdiction and
shall be final and binding upon the Parties. In the event the
Parties cannot agree on an arbitrator within ten (I0) days, the
arbitrator shall be appointed by the Parties in the following
manner JAMS, and/or another alternative dispute resolution provider
agreed upon by the Parties, shall furnish the Parties with a list
of potential qualified arbitrators. For purposes of this Section, a
''qualified arbitrator, shall mean a retired judge of a superior or
appellate court or an experienced attorney agreed upon by the
Parties. If any Party objects to all the names on the list. AAA
and/ or another alternative dispute resolution provider agreed upon
by the Parties shall provide the Parties with an alternative list
of potential qualified arbitrators; provided, however, that each
Party shall be entitled to so object only once. Once the Parties
have agreed upon a particular list, or a list is furnished pursuant
to the preceding sentence the Parties shall alternately eliminate
unacceptable arbitrators until only one name remains. The remaining
person shall be appointed arbitrator. The Parties agree to draw
lots to decide which Party shall remove the first name from the
list of arbitrators. Should a Party whose turn it is to eliminate
any unacceptable arbitrator fail to do so within twenty-four (24)
business hours of the written request of the other Party, then the
choice of the other Party of an arbitrator then remaining on such
list shall be binding on the Parties. All costs of the arbitration,
including the cost of any record or transcript of the arbitration
proceedings, all administrative fees, the fee of the arbitrator,
and all other fees and costs shall initially be borne equally by
the Parties, provided, however, that the arbitrator shall award the
prevailing Party its reasonable attorneys' fees, expenses and
costs, including all costs of arbitration. The arbitrator shall not
extend, modify, or suspend any of the terms of this Agreement. The
arbitration and all proceedings related thereto shall be deemed
private and confidential and, subject to the provisions of
paragraph 29.1, shall not be disclosed to the public by either the
arbitrator or the Parties to the arbitration. If the rules of AAA,
JAMS or another agreed upon alternative dispute resolution provider
differ from those of this Section, the provisions of this Section
shall control. Notwithstanding the foregoing, the Parties may seek
provisional relief, including a preliminary injunction or temporary
restraining order, in any federal or state court of competent
jurisdiction located in Los Angeles, California, without prejudice
to the above described arbitration procedures, if in that Parties
sole judgment such provisional relief is necessary to avoid a
irreparable injury or to preserve the status quo. Never the less,
the arbitration procedure set forth in this section is intended to
be the sole and exclusive method of resolving any claims arising
out of, relating to, or regarding this
agreement.

 

 

-8-

Boston
Therapeutics

 

Confidentiality. The Parties
agree that the terms, conditions, and subject matter of this
Agreement constitute confidential and proprietary information
belonging to Licensor. Licensee agrees not to divulge any
confidential and proprietary information pertaining to Licensor or
this Agreement to any third party without prior written consent of
Licensor, except as required by law. Licensee agrees to keep all
such information as confidential. Licensee may disclose such
confidential and proprietary information to its officers,
directors, employees, agents, and authorized representatives to the
extent necessary to enable Licensee to perform its obligations
under this Agreement; provided said officers, directors, employees,
agents, and/or authorized representatives execute an appropriate
confidentiality agreement. Licensee shall be liable for any
unauthorized use and disclosure of such confidential information by
its officers, directors, employees, agents, and authorized
representatives, including without limitation its attorneys and
accountants. The Parties further agree that any breach or
threatened breach of this Section 13.6 would cause irreparable harm
to Licensor, that a remedy at law or in damages would be
inadequate, and that the provisions of this Section 13.6 may be
enforced by way of injunctive relief in addition to any other
rights available to Licensor in law or in equity. For purposes of
this Agreement, “confidential” or
“proprietary” information includes, but is not limited
to, the terms, conditions, and subject matter of this Agreement,
and Licensor’s business, including any financial, cost,
pricing, and royalty information; product development, business,
marketing, promotion, distribution, sales, sales plans, and
strategies; information concerning Licensor’s product
development and intellectual property; information concerning
manufacturing processes relating to the Licensed Products, or trade
secrets. The foregoing confidentiality obligations shall not apply
to information that: (a) was previously known to the recipient
free of any obligation to keep it confidential; (b) was
independently developed by recipient; or (c) is or becomes
publicly available by means other than the unauthorized disclosure
by recipient. In the event any judicial or regulatory authority
requests or requires disclosure of any Confidential Information of
the other party, the receiving party shall promptly notify the
disclosing party of the requested or required disclosure and shall
cooperate with the disclosing party in any effort to avoid or limit
such disclosure.

 

Entire Agreement; Counterparts.
This Agreement constitutes the complete understanding between the
Parties and supersedes any and makes void all prior agreements,
promises, representations, or inducements, no matter their form,
concerning the subject matter of this Agreement. The Parties desire
that this Agreement represent a single and completely integrated
contract expressing the entire agreement of the Parties with
respect to the subject matter of this Agreement. This Agreement may
be executed in two or more duplicate bond or facsimile
counterparts, each of which shall be considered an original, but
all of which together shall constitute one and the same instrument,
and in pleading or proving any provision of the Agreement, it shall
not be necessary to produce more than one such
counterpart.

 

Severability. Whenever
possible, each provision of this Agreement shall be interpreted in
such a manner to be effective and valid under applicable law.
Should any of the provisions or terms of this Agreement be
determined illegal, invalid, or unenforceable by any court of
competent jurisdiction, validity of the remaining parts, terms, or
provisions shall not be affected thereby, and said illegal,
invalid, or unenforceable part, term, or provision shall be deemed
not to be a part of this Agreement.

 

Headings. All recitals are
incorporated by reference into this Agreement. Caption and Section
headings are used for convenience and reference only, are no part
of this Agreement, and shall not be used in interpreting,
construing, defining, limiting, extending, or describing the scope
of this Agreement, or any provision hereof, in any
way.

 

[signature page follows]

 

 

-9-

Boston
Therapeutics

 

IN
WITNESS WHEREOF, the Parties hereto have caused this instrument to
be duly executed as of the day and year first above
written.

 

Licensor:

 

Level Brands, Inc.

 

_________________________________

Martin
A. Sumichrast, CEO

 

Licensor:

 

Level H & W, LLC.

 

_________________________________

Mark
Elliott, CFO / COO

 

 

Licensee:

 

Boston Therapeutics, Inc.

 

_________________________________

Carl
Rausch, CEO

 

 

-10-

Boston
Therapeutics

 

EXHIBIT A

CODE OF CONDUCT 行为守则

 

1.

PURPOSE:
Licensee is committed to using only manufacturers to strive to
conduct business in a highly professional and ethical manner. This
document outlines those commitments each facility makes in respect
to its compliance with applicable law and tis personal practices
and policies.

 

目的:[被许可人]承诺只使用了力争在一个高度专业和道德的方式开展业务的厂家。本文概述了这些各设施使得在尊重其遵守适用的法律和个人的做法和政策的承诺。

2.

CHILD
LABOR: The facility agrees not to use child labor in the
manufacturing, or distribution of the Goods. The term
“child” refers to a person younger than the local legal
minimum age for employment or the age for completing compulsory
education; provided, however, in no event shall the Facility use
any person below the age of (15) fifteen. The Facility also agrees
to comply with all other Laws applicable to employees, regardless
of the age of an employee.

 

童工:该中心同意不使用童工在制造,或货物配送。
“童工”是指一个人年龄低于当地法定最低就业年龄或年龄在完成义务教育;
提供的,但是,在任何情况下,基金使用任何人(15)15岁以下。该基金还同意遵守适用于所有员工的其他法律,不论雇员的年龄。

3.

FORCED
LABOR: The Facility agrees to employ only persons whose presence is
voluntary. The Facility agrees not to use any forced or involuntary
labor, whether prison, bonded, indentured or
otherwise.

 

强迫劳动:该基金同意只雇用人员,其存在是自愿的。该基金同意不使用任何强迫或非自愿劳动,无论是监狱,保税,契约或其他方面。

4.

ABUSE
OF LABOR: The Facility agrees to treat each employee with dignity
and respect and not to use corporal punishment, threats of
violence, or other forms of physical, sexual, psychological or
verbal harassment or abuse.

 

滥用劳动:该基金同意把每个员工的尊严和尊重,不使用体罚,暴力威胁或其他形式的身体,性,心理或言语上的骚扰或虐待。

5.

NON-DISCRIMINATION:
The Facility agrees not to discriminate in hiring and employment
practices, including salary, benefits, advancement, discipline,
termination, or retirement on the basis of race, religion, age,
nationality, social or ethnic origin, sexual orientation, gender,
political opinion or disability.

 

不歧视:该基金同意不会在雇佣和招聘活动,包括工资,福利,晋升,纪律,终止或退休种族,宗教,年龄,国籍,社会或民族,性取向,性别的基础上歧视,政治观点或残疾。

6.

ASSOCIATION:
The Facility agrees to follow employees to organize and bargain
collectively without penalty or interference in accordance with
local Laws.

 

关联关系:该基金同意遵守雇员组织和集体谈判不受处罚或干预按照当地的法律。

7.

WAGES,
BENEFITS AND WORKING HOURS: The facility recognizes that wages are
essential to meeting employee’s basic needs. The Facility
agrees to comply, at a minimum, with all applicable wages and hour
Laws, including minimum wage, overtime hours, maximum hours, piece
rates and other elements of compensation and shall provide legally
mandated benefits.

 

工资,福利和工作时间:该厂认识到,工资是必要的,以满足员工的基本需求。该基金同意遵守,至少,所有适用的工资和工时的法律,包括最低工资,加班,最长工时,计件工资和补偿等内容,并应提供法定福利。

8.

HEALTH
AND SAFETY: The Facility agrees to provide employees with a safe
and healthy workplace environment in accordance with all applicable
Laws, ensuring at a minimum, reasonable access to potable water and
sanitary facilities, fine safety and adequate lighting and
ventilation. The Facility also agrees to ensure that the same
standards of health and safety are applied to any housing it
provides for employees.

 

健康和安全:该基金同意为员工提供一个安全和健康的工作环境符合所有适用法律,确保在最低限度,合理获得饮用水和卫生设施,精美的安全性和足够的照明和通风。该基金也同意,以确保健康和安全的相同标准适用于它提供了雇员的住房

9.

COMPLIANCE:
The Facility agrees to take appropriate steps to ensure that the
provisions of the COC are communicated to its employees, including
by prominent posting a copy of this COC in the local language on
one or more bulletin boards in places readily accessible to
employees at all times.

 

合规性:本基金同意采取适当措施,以确保奥委会的规定传达给员工,其中包括由著名张贴在当地语言的一个或多个电子公告板的名额该行为准则的副本容易获得员工的所有次。

 

 

-11-

Boston
Therapeutics

 

10.

ENVIRONMENT:
Business partners should share our concern for the environment and
adhere to their local and national laws regarding the protection
and preservation of the environment.

 

环境:业务合作伙伴应该分享我们对环境的关注,并坚持对环境的保护和维护当地和国家法律。

11.

LEGAL
REQUIREMENTS: Business partners should be in compliance with all
legal requirements involved in conducting the
business.

 

法律要求:业务合作伙伴应符合参与开展业务的所有法律要求。

12.

Our
Business Partners are required to provide full access to their
facilities and those of their manufacturers, vendors and
subcontractors, and to release records relating to employment
practices. We may conduct on-site inspections of facilities to
monitor the standards and assure the quality of our
products.

 

我们的业务合作伙伴必须提供完全访问他们的设备和那些他们的制造商,供应商和分包商,并发布有关用工行为记录。我们可以进行现场视察设施,以监控标准,确保了产品的质量。

Please report Violations Anonymously by emailing to:
mark@levelbrands.com

 

 

-12-

Boston
Therapeutics

 

EXHIBIT B

 

REQUIRED INSURANCE CERTIFICATE

 

Under Description of Operations state the
following: 

 

“Certificate Holder Level Brands, Inc., Level H&W, LLC,
IM1 Holdings, LLC, Encore Endeavor 1, LLC, Tommy
Meharey, Kathy Ireland, kathy ireland
Worldwide, Inc., kathy ireland LLC, The Sterling/Winters Company,
and their partners, owners, subsidiaries, affiliates,
directors, officers, managers and employees are named additional
insured with regards to liability arising out of operations of the
named insured.”

 

The Certificate Holder should be listed as:

 

Level Brands, Inc.

4521 Sharon Road, Ste. 450

Charlotte, NC 28211

 

Send copies of Certificate to:

 

Mitchka Lyonnais

mlyonnais@mmibi.com

Momentous Insurance Brokerage, Inc.

 

Mark Elliott

mark@levelbrands.com

Level Brands, Inc.

 

 

-13-

Boston
Therapeutics

 

EXHIBIT C

 

MILLENNIUM DEVELOPMENET GOALS

 

1. We
must eradicate extreme poverty and hunger! 

 

2.
Achieve universal primary education.

 

3.
Promote gender equality and empower women.

 

4.
Reduce child mortality.

 

5.
Improve maternal health.

 

6.
Combat HIV/AIDS, Malaria, and other diseases.

 

7.
Ensure environmental sustainability.

 

8. Build global partnerships
for development.

 

9. Bring opportunities of financial stability and healthcare to
American Veterans and their families.

 

10. Stop Human Trafficking.

 

 

-14-

Boston
Therapeutics

 

EXHIBIT D

 

LICENSOR OBLIGATIONS

 

●

Video Content. Licensor will
produce and deliver four (4) branded videos that promote the
Licensed Products and/or Boston Therapeutics, Inc., generally (the
“Video Content”). All Video Content will be produced by
EE1 and will be delivered by June 30, 2018.

 

●

Electronic Press Kit. Licensor
will produce an Electronic Press Kit (EPK) to answer media
questions about the relationship, and for online posting. Licensor
will prepare Frequently Asked Questions (FAQ) for use by Licensee
on its website. The EPK will be prepared by EE1 and delivered by
June 30, 2018.

 

●

Production Services. Licensor
shall make the Level Brands Media and Marketing teams available to
Licensee for use in creating the Video Content, which will be
separately compensated by Licensee at commercially reasonable rates
(the “Production Services”). All Production Services
will be produced by EE1.

 

Licensor Promotional Obligations:

 

●

Media Releases. Media Release
announcing the relationship between the Licensee and Licensor
(kathy ireland Health & Wellness, Chef Andre Carthen Sunday
Dinner, and I’M1 Tommy Meharey) and other media releases as
mutually agreed to with Licensee. All media releases will be
prepared by EE1.

 

●

Social Media Pushes. Ms.
Ireland, Chef Andre Carthen, I’M1 Co-Founder, Tommy Meharey,
and Licensor Teams shall curate social media posts in social media
channels. Such posts may be prepared well in advance, and released
at the appropriate time for Licensee. All Social Media Content will
be prepared by EE1.

 

All of
the above deliverables will be prepared at agreed upon timelines,
and will be appropriate for release at the times of
Licensee’s quarterly requests.

 

 

 

 

 

 

-15-

Boston
Therapeutics

 

EXHIBIT E

 

PROMISSORY
NOTE

 

	

$450,000

	

Charlotte, North Carolina

	
 

	

June __, 2018

 

FOR VALUE RECEIVED, the undersigned,
Boston Therapeutics, Inc., a Delaware Corporation (the
“Maker”), hereby
promise(s) to pay to the order of Level Brands, Inc., a North
Carolina corporation (together with its successors and assigns, the
“Holder”), the
principal sum of Four Hundred and Fifty Thousand Dollars
($450,000), together with interest on all principal amounts
available for advancement hereunder at eight percent (8%) per
annum, on the earliest to occur of: (a) December 31, 2019, or (b) a
Qualified Capital Raise (as defined below) (“Maturity”). Interest shall be paid
in arrears at Maturity and computed on the basis of a 365-day
year.

 

For
purposes hereof, “Qualified
Capital Raise” shall mean the issuance or sale by
Maker of its equity securities in a public or private offering or
one or more financings through loans or issuance of debt
securities, in any event, which results in gross proceeds to the
Maker of at least Seven Hundred Fifty Thousand Dollars
(US$750,000).

 

The
Maker reserves the right to prepay all or any portion of this
Promissory Note at any time and from time to time without premium
or penalty of any kind. All payments made hereunder shall be made
in lawful currency of the Unites States of America to the Holder at
its business address, or at such other place as the Holder may
designate in writing. All payments made hereunder, whether a
scheduled payment, prepayment, or payments as a result of
acceleration, shall be allocated first to accrued but unpaid
interest, and then to payments of principal remaining outstanding
hereunder.

 

Each
person liable hereon agrees to pay all reasonable costs of
collection, including attorneys’ fees, paid or incurred by
the Holder in enforcing this Promissory Note on default or the
rights and remedies herein provided.

 

The
Maker, for itself and for any guarantors, sureties, endorsers
and/or any other person or persons now or hereafter liable hereon,
if any, hereby waives demand of payment, presentment for payment,
protest, notice of nonpayment or dishonor and any and all other
notices and demands whatsoever, and any and all delays or lack of
diligence in the collection hereof, and expressly consents and
agrees to any and all extensions or postponements of the time of
payment hereof from time to time at or after maturity and any other
indulgence and waives all notice thereof.

 

No
delay or failure by the Holder in exercising any right, power,
privilege or remedy hereunder shall affect such right, power,
privilege or remedy or be deemed to be a waiver of the same or any
part thereof; nor shall any single or partial exercise thereof or
any failure to exercise the same in any instance preclude any
further or future exercise thereof, or exercise of any other right,
power, privilege or remedy, and the rights and privileges provided
for hereunder are cumulative and not exclusive. The delay or
failure to exercise any right hereunder shall not waive such
right.

 

 

-16-

Boston
Therapeutics

 

The
Holder may sell, assign, pledge or otherwise transfer all or any
portion of its interest in this Promissory Note at any time or from
time to time without prior notice to or consent of and without
releasing any party liable or to become liable hereon.

 

This
Promissory Note shall be governed by and construed and enforced in
accordance with the laws of the State of North
Carolina.

 

IN WITNESS WHEREOF, the undersigned has
duly caused this Promissory Note to be executed and delivered as of
the date first written above.

 

	
 

	

Boston
Therapeutics, Inc.

 

 

By:                                                                            

Carl
Rausch, CEO

 

 

 

 

 

-17-

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