Document:

EXHIBIT 10.1

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION
AGREEMENT (this “Agreement”), is dated as of December 4, 2012, by and between MusclePharm Corporation, a
Nevada corporation (the “Company”), and the subscribers identified on Schedule 1 hereto (the “Subscribers”).

 

WHEREAS, the
Company and the Subscribers are executing and delivering this Agreement in reliance upon an exemption from securities registration
afforded by the provisions of Section 4(2), Section 4(6) and/or Regulation D (“Regulation D”) as promulgated
by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933,
as amended (the “1933 Act”);

 

WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Subscribers,
as provided herein, and the Subscribers shall purchase, in the aggregate, (i) up to $1,000,000 of principal amount (“Principal
Amount”) promissory notes of the Company (“Note” or “Notes”), a form of which is
annexed hereto as Exhibit A; and (ii) shares of the Company’s $0.001 par value Common Stock (“Incentive Shares”)
(the “Offering”).  The Notes and the Incentive Shares are collectively referred to herein as the “Securities”;
and

 

WHEREAS, the
aggregate proceeds of the sale of the Notes and the Incentive Shares contemplated hereby (“Purchase Price”)
shall be held in escrow by Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581 (the “Escrow
Agent”) pursuant to the terms of an Escrow Agreement to be executed by the parties substantially in the form attached
hereto as Exhibit B (the “Escrow Agreement”).

 

NOW, THEREFORE,
in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Subscribers hereby
agree as follows:

 

1.             Closing.  Subject
to the satisfaction or waiver of the terms and conditions of this Agreement, on the “Closing Date,” Subscribers
shall purchase and the Company shall sell to such Subscribers the Notes and Shares as described in Section 2 below.  The
date the Escrow Agent releases the funds received from one or more Subscribers to the Company and releases the Escrow Documents
(as defined in the Escrow Agreement) to the parties in accordance with the provisions of the Escrow Agreement shall be the Closing
Date with respect to such released funds and Escrow Documents, and such release is referred to herein as the “Closing.”
There shall be only one Closing.

 

2.             Notes
and Incentive Shares.

 

(a)          Notes.  
Subject to the satisfaction or waiver of the terms and conditions of this Agreement, on the Closing Date, each Subscriber shall
purchase from the Company, and the Company shall sell to each such Subscriber, a Note in the Principal Amount designated on Schedule
1 hereto for each such Subscriber’s Purchase Price indicated thereon.  

 

(b)          Incentive
Shares. On the Closing Date, the Company will issue to each Subscriber, its pro-rata portion of an aggregate 50,000 Incentive
Shares.  The Incentive Shares will be fully paid and non-assessable.

 

(c)          Allocation
of Purchase Price.   The Purchase Price will be allocated among the components of the Securities so that each component
of the Securities will be fully paid and non-assessable, and acquired for value.

 

    	 

    	 

    

 

3.             Subscriber
Representations and Warranties.  Each of the Subscribers hereby represents and warrants to and agrees with the Company
with respect only to such Subscriber that:

 

(a)          Organization
and Standing of the Subscriber.  Subscriber, to the extent applicable, is an entity duly formed, validly existing and
in good standing under the laws of the jurisdiction of its formation.

 

(b)          Authorization
and Power.  Such Subscriber has the requisite power and authority to enter into and perform this Agreement and the other
Transaction Documents and to purchase the Note and Incentive Shares being sold to it hereunder.  The execution, delivery
and performance of this Agreement and the other Transaction Documents by such Subscriber and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary corporate action, and no further consent or authorization
of Subscriber or its board of directors or stockholders, if applicable, is required.  This Agreement and the other Transaction
Documents have been duly authorized, executed and delivered by such Subscriber and constitutes, or shall constitute, when executed
and delivered, a valid and binding obligation of such Subscriber, enforceable against Subscriber in accordance with the terms thereof.

 

(c)          No
Conflicts.  The execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation
by such Subscriber of the transactions contemplated hereby and thereby or relating hereto do not and will not (i) result in a violation
of such Subscriber’s charter documents, bylaws or other organizational documents, if applicable; (ii) conflict with nor constitute
a default (or an event which with notice or lapse of time or both would become a default) under any agreement to which such Subscriber
is a party; nor (iii) result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental
agency applicable to such Subscriber or its properties (except for such conflicts, defaults and violations as would not, individually
or in the aggregate, have a material adverse effect on Subscriber).  Such Subscriber is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under this Agreement and the other Transaction Documents nor to purchase the Securities
in accordance with the terms hereof, provided that for purposes of the representation made in this sentence, such Subscriber is
assuming and relying upon the accuracy of the relevant representations and agreements of the Company herein.

 

(d)          Information
on Company.   Such Subscriber has been furnished with or has had access to the EDGAR Website of the Commission to
the Company’s filings, as amended, made with the Commission through the third business day preceding the Closing Date, referred
to herein collectively as the “Reports”.  Subscribers are not deemed to have any knowledge of any
information not included in the Reports unless such information is delivered in the manner described in the next sentence.  In
addition, such Subscriber may have received in writing from the Company such other information concerning its operations, financial
condition and other matters as such Subscriber has requested in writing, identified thereon as OTHER WRITTEN INFORMATION (such
other information is collectively, the “Other Written Information”), and considered all factors such Subscriber
deems material in deciding on the advisability of investing in the Securities.  Such Subscriber was afforded (i) the
opportunity to ask such questions as such Subscriber deemed necessary of, and to receive answers from, representatives of the Company
concerning the merits and risks of acquiring the Securities; (ii) the right of access to information about the Company and its
financial condition, results of operations, business, properties, management and prospects sufficient to enable such Subscriber
to evaluate the Securities; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to acquiring the
Securities.

 

    	 

    	 

    

 

(e)          Information
on Subscriber.   Such Subscriber is, and, unless the Company is notified by the Subscribers otherwise, an “accredited
investor,” as such term is defined in Regulation D promulgated by the Commission under the 1933 Act, is experienced in
investments and business matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned
companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax
and other business matters as to enable such Subscriber to utilize the information made available by the Company to evaluate the
merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative
investment.  Such Subscriber has the authority and is duly and legally qualified to purchase and own the Securities.  Such
Subscriber is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.  The
information set forth on Schedule 1 hereto regarding such Subscriber is accurate.

 

(f)          Purchase
of Notes and Incentive Shares.  On the Closing Date, such Subscriber will purchase the Note and Incentive Shares
as principal for its own account for investment only and not with a view toward, or for resale in connection with, the public sale
or any distribution thereof.

 

(g)          Compliance
with Securities Act.   Such Subscriber understands and agrees that the Securities have not been registered under
the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require registration
under the 1933 Act (based in part on the accuracy of the representations and warranties of the Subscriber contained herein), and
that the Securities must be held indefinitely unless a subsequent disposition is registered under the 1933 Act or any applicable
state securities laws or is exempt from such registration.  In any event, and subject to compliance with applicable securities
laws, the Subscriber may enter into lawful hedging transactions in the course of hedging the position they assume and the Subscriber
may also enter into lawful short positions or other derivative transactions relating to the Securities, or interests in the Securities,
and deliver the Securities, or interests in the Securities, to close out their short or other positions or otherwise settle other
transactions, or loan or pledge the Securities, or interests in the Securities, to third parties who in turn may dispose of these
Securities.

 

(h)          Incentive
Shares Legend.  Except as otherwise provided herein, the Incentive Shares shall bear the following or similar legend:

 

“THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR APPLICABLE
STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE
OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF
COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

    	 

    	 

    

 

(i)          Notes
Legend.  The Notes shall bear the following legend:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED
BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO
RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

(j)          Communication
of Offer.  The offer to sell the Securities was directly communicated to such Subscriber by the Company.  At
no time was such Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement,
or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and
concurrently with such communicated offer.

 

(k)          Restricted
Securities.   Notwithstanding anything to the contrary contained in this Agreement, such Subscriber may transfer
(without restriction and without the need for an opinion of counsel) the Securities to its Affiliates (as defined below) provided
that each such Affiliate is an “accredited investor” under Regulation D and such Affiliate agrees to be bound by the
terms and conditions of this Agreement. For the purposes of this Agreement, an “Affiliate” of any person or
entity means any other person or entity directly or indirectly controlling, controlled by or under direct or indirect common control
with such person or entity.  For purposes of this definition, “control” means the power to direct
the management and policies of such person or firm, directly or indirectly, whether through the ownership of voting securities,
by contract or otherwise.

 

(l)          No
Governmental Review.  Such Subscriber understands that no United States federal or state agency or any other governmental
or state agency has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in
the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(m)          Correctness
of Representations.  Subscriber represents that the foregoing representations and warranties are true and correct
as of the date hereof and, unless Subscriber otherwise notifies the Company prior to the Closing Date, shall be true and correct
as of the Closing Date.

 

(n)          Survival.  The
foregoing representations and warranties shall survive the Closing Date.

 

    	 

    	 

    

 

4.             Company
Representations and Warranties.  Except as set forth in the Schedules, the Company represents and warrants to and
agrees with each Subscriber that:

 

(a)          Due
Incorporation.   The Company is a corporation duly incorporated, validly existing and in good standing under the
laws of the jurisdiction of its incorporation and has the requisite corporate power to own its properties and to carry on its business
as presently conducted.  The Company is duly qualified as a foreign corporation to do business and is in good standing
in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary, other
than those jurisdictions in which the failure to so qualify would not have a Material Adverse Effect (as defined herein).  For
purposes of this Agreement, a “Material Adverse Effect” shall mean a material adverse effect on the financial
condition, results of operations, prospects, properties or business of the Company and its Subsidiaries taken as a whole.  For
purposes of this Agreement, “Subsidiary” means, with respect to any entity at any date, any direct or indirect
corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture or other business
entity of which (A) more than 30% of (i) the outstanding capital stock having (in the absence of contingencies) ordinary
voting power to elect a majority of the board of directors or other managing body of such entity, (ii) in the case of a partnership
or limited liability company, the interest in the capital or profits of such partnership or limited liability company or (iii) in
the case of a trust, estate, association, joint venture or other entity, the beneficial interest in such trust, estate, association
or other entity business is, at the time of determination, owned or controlled directly or indirectly through one or more intermediaries,
by such entity, or (B) is under the actual control of the Company.  As of the Closing Date, all of the Company’s
Subsidiaries and the Company’s other ownership interests therein are set forth on Schedule 4(a).  The
Company represents that it owns all of the equity of the Subsidiaries and rights to receive equity of the Subsidiaries set forth
on Schedule 4(a), free and clear of all liens, encumbrances and claims, except as set forth on Schedule 4(a).  No
person or entity other than the Company has the right to receive any equity interest in the Subsidiaries.  Except as
set forth on Schedule 4(a), the Company further represents that neither the Company nor the Subsidiaries have been
known by any other names for the five (5) years preceding the date of this Agreement.

 

(b)          Outstanding
Stock.  All issued and outstanding shares of capital stock and equity interests in the Company have been duly authorized
and validly issued and are fully paid and non-assessable.

 

(c)          Authority;
Enforceability.  This Agreement, the Notes, Incentive Shares, the Escrow Agreement, and any other agreements delivered
or required to be delivered together with or pursuant to this Agreement or in connection herewith (collectively “Transaction
Documents”) have been duly authorized, executed and delivered by the Company and are valid and binding agreements of
the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general
principles of equity.   The Company has full corporate power and authority necessary to enter into and deliver the Transaction
Documents and to perform its obligations thereunder.

 

(d)          Capitalization
and Additional Issuances.   The authorized and outstanding capital stock of the Company on an actually issued and
on a fully diluted basis and all outstanding rights to acquire or receive, directly or indirectly, any equity of the Company or
any of the Subsidiaries as of the date of this Agreement and the Closing Date (not including the Securities) are set forth on Schedule
4(d).  Except as set forth on Schedule 4(d), there are no options, warrants, or rights to subscribe
to, securities, rights, understandings or obligations convertible into or exchangeable for or granting any right to subscribe for
any shares of capital stock or other equity interest of the Company.  The only officer, director, employee and consultant
stock option or stock incentive plan or similar plan currently in effect is described on Schedule 4(d).  There
are no preemptive rights affecting the Company’s Common Stock or equity.

 

    	 

    	 

    

 

(e)          Consents.  No
consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the
Company, Subsidiaries or any of their Affiliates, any Principal Market, or the Company’s stockholders is required for the
execution by the Company of the Transaction Documents and compliance and performance by the Company of its obligations under the
Transaction Documents, including, without limitation, the issuance and sale of the Securities.  The Transaction Documents
and the Company’s performance of its obligations thereunder has been approved by the Company’s board of directors in
accordance with the Company’s Articles of Incorporation and applicable law.  Any federal or state securities law
qualifications and filings, with respect to the Offering will, in the case of qualifications, be effective upon Closing and will,
in the case of filings, be made within the time prescribed by law.

 

(f)          No
Violation or Conflict.  Upon Closing, and assuming the representations and warranties of the Subscribers in Section
3 are true and correct, neither the issuance nor the sale of the Securities nor the performance of the Company’s obligations
under the Transaction Documents by the Company, will:

 

(i)          violate,
conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time
or both would be reasonably likely to constitute a default) under (A) the articles or certificate of incorporation, charter or
bylaws of the Company, (B) to the Company’s knowledge, any decree, judgment, order, law, treaty, rule, regulation or determination
applicable to the Company of any court, governmental agency or body, or arbitrator having jurisdiction over the Company or over
the properties or assets of the Company or any of its Affiliates, (C) the terms of any bond, debenture, note or any other evidence
of indebtedness, or any agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument
to which the Company or any of its Affiliates is a party, by which the Company or any of its Affiliates is bound, or to which any
of the properties of the Company or any of its Affiliates is subject, or (D) the terms of any “lock-up” or similar
provision of any underwriting or similar agreement to which the Company, or any of its Affiliates is a party except, in each case,
any violation, conflict, breach, or default that would not have a Material Adverse Effect; or

 

(ii)         result
in the creation or imposition of any lien, charge or encumbrance upon the Securities or any of the assets of the Company or any
of its Affiliates except in favor of each Subscriber as described herein; or

 

(iii)        except
as set forth on Schedule 4(f)(iii), result in the activation of any anti-dilution rights or a reset or repricing
of any debt, equity or security instrument of any creditor or equity holder of the Company, or the holder of the right to receive
any debt, equity or security instrument of the Company nor result in the acceleration of the due date of any obligation of the
Company; or

 

(iv)         result
in the triggering of any rights of first refusal, participation rights, piggy-back or other registration rights of any person or
entity holding securities of the Company or having the right to receive securities of the Company or pursuant to any agreement
with the Company.

 

    	 

    	 

    

 

(g)          The
Securities.  The Securities upon issuance:

 

(i)          are,
or will be, free and clear of any security interests, liens, claims or other encumbrances, subject only to restrictions upon transfer
under the 1933 Act and any applicable state securities laws;

 

(ii)         have
been or will be duly and validly authorized and on the dates of issuance of the Notes and Incentive Shares, such Notes and Incentive
Shares will be duly and validly issued, fully paid and non-assessable;

 

(iii)        will
not have been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of the Company
or rights to acquire securities or debt of the Company;

 

(iv)         will
not subject the holders thereof to personal liability by reason of being such holders; and

 

(v)          assuming
the representations and warranties of the Subscribers as set forth in Section 3 hereof are true and correct, will not result in
a violation of Section 5 under the 1933 Act.

 

(h)          Litigation.  There
is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its Affiliates that would affect the
execution by the Company or the complete and timely performance by the Company of its obligations under the Transaction Documents.  Except
as disclosed in the Reports, there is no pending or, to the best knowledge of the Company, basis for or threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over the Company,
or any of its Affiliates which litigation if adversely determined would have a Material Adverse Effect.

 

(i)          No
Market Manipulation.  The Company and its Affiliates have not taken, and will not take, directly or indirectly, any
action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of the
Common Stock to facilitate the sale or resale of the Securities or affect the price at which the Securities may be issued or resold.

 

(j)          Information
Concerning Company.  The Reports and Other Written Information contain all material information relating to the Company
and its operations and financial condition as of their respective dates which information is required to be disclosed therein.  
Since December 31, 2011, and except as disclosed in the Reports or modified in Other Written Information or in the Schedules hereto,
there has been no Material Adverse Effect relating to the Company. The Reports and Other Written Information including the financial
statements included therein do not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, taken as a whole, not misleading in light of the circumstances and
when made.  The financial statements of the Company included in the Reports comply as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the Commission or other applicable rules and
regulations with respect thereto.  Such financial statements have been prepared in accordance with United States generally
accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved (except (i)
as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements,
to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all material respects
the financial position of the Company and its subsidiaries as of the dates thereof and the results of operations and cash flows
for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

    	 

    	 

    

 

(k)          Solvency.  Based
on the financial condition of the Company as of the Closing Date and except as set forth in the Reports, after giving effect to
the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the Company’s fair saleable value
of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other
liabilities (including known contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably
small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its
capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital
requirements and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company
would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its debt when such amounts are required to be paid.  The Company does not intend
to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt).

 

(l)          Defaults.  The
Company is not in violation of its articles of incorporation or bylaws.   The Company is (i) not in default under or
in violation of any other material agreement or instrument to which it is a party or by which it or any of its properties are bound
or affected, which default or violation would have a Material Adverse Effect, (ii) not in default with respect to any order of
any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority arising out
of any action, suit or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition
or similar matters which default would have a Material Adverse Effect, or (iii) not in violation of any statute, rule or regulation
of any governmental authority which violation would have a Material Adverse Effect.

 

(m)          No
Integrated Offering.   Neither the Company, nor any of its Affiliates, nor any person acting on its or their behalf,
has directly or indirectly made any offers or sales of any security of the Company nor solicited any offers to buy any security
of the Company under circumstances that would cause the offer of the Securities pursuant to this Agreement to be integrated with
prior offerings by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions, including, without
limitation, under the rules and regulations of the OTCQB [as defined in Section 4(v)].  No prior offering will impair
the exemptions relied upon in this Offering or the Company’s ability to timely comply with its obligations hereunder.  Neither
the Company nor any of its Affiliates will take any action or suffer any inaction or conduct any offering other than the transactions
contemplated hereby that may be integrated with the offer or issuance of the Securities or that would impair the exemptions relied
upon in this Offering or the Company’s ability to timely comply with its obligations hereunder.

 

(n)          No
General Solicitation.  Neither the Company, nor any of its Affiliates, nor to its knowledge, any person acting on
its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D
under the 1933 Act) in connection with the offer or sale of the Securities.

 

(o)          No
Undisclosed Liabilities.  Other than as set forth in the Reports, the Company has no liabilities or obligations which
are material, individually or in the aggregate, other than those incurred in the ordinary course of the Company’s business
since December 31, 2011, and which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

    	 

    	 

    

 

(p)          Dilution.  
The Company’s executive officers and directors understand the nature of the Securities being sold hereby and recognize that
the issuance of the Securities will have a potential dilutive effect on the equity holdings of other holders of the Company’s
equity or rights to receive equity of the Company.  The board of directors of the Company has concluded, in its good
faith business judgment, that the issuance of the Securities is in the best interests of the Company.  The Company specifically
acknowledges that its obligation to issue the Incentive Shares is binding upon the Company and enforceable regardless of the dilution
such issuance may have on the ownership interests of other stockholders of the Company or parties entitled to receive equity of
the Company.

 

(q)          No
Disagreements with Accountants and Lawyers.  There are no material disagreements of any kind presently existing,
or reasonably anticipated by the Company to arise between the Company and the accountants and lawyers previously and presently
employed by the Company, including but not limited to disputes or conflicts over payment owed to such accountants and lawyers,
nor have there been any such disagreements during the two years prior to the Closing Date.

 

(r)          Investment
Company.   Neither the Company nor any Affiliate of the Company is an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

 

(s)          Foreign
Corrupt Practices.  Neither the Company, nor to the knowledge of the Company, any agent or other person acting on
behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other
unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose
fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is
in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(t)          Reporting
Company/Shell Company.  The Company is a publicly-held company subject to reporting obligations pursuant to Section
13 of the Securities Exchange Act of 1934, as amended (the “1934 Act”).  Pursuant to the provisions
of the 1934 Act, the Company has timely filed all reports and other materials required to be filed thereunder with the Commission
during the twelve months preceding the date of this Agreement and the Closing Date.  As of the Closing Date, the Company
is not and was not a “shell company” nor a “former shell company” as those terms are employed in Rule 144
under the 1933 Act.

 

(u)          Listing.  The
Company’s Common Stock is quoted on the OTCQB of the OTC Markets Group, Inc. (“OTCQB”) under the symbol
MSLP.  The Company has not received any pending oral or written notice that its Common Stock is not eligible nor will
become ineligible for quotation on the OTCQB nor that its Common Stock does not meet all requirements for the continuation of such
quotation and the Company satisfies all of the requirements on issuance for the continued quotation of its Common Stock on the
OTCQB.

 

(v)          DTC
Status.   The Company’s transfer agent is a participant in the Depository Trust Company Automated Securities
Transfer Program. The name, mailing address, street address, telephone number, fax number, contact person and email address of
the Company transfer agent is set forth on Schedule 4(v) hereto.

 

    	 

    	 

    

 

(w)          Anti-Takeover
Provisions.  The Company and its Board of Directors will have taken as of the Closing Date all necessary action,
if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s Articles of Incorporation (or similar
charter documents) or the laws of its jurisdiction of incorporation that are or could become applicable to the Subscribers as a
result of the Subscribers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including without limitation as a result of the Company’s issuance of the Notes and Incentive Shares and the Subscribers’
ownership of the Notes and Incentive Shares.

 

(x)          Title
to Assets.  The Company has good and marketable title to all of its real and personal property reflected in the Reports,
free and clear of any mortgages, pledges, charges, liens, security interests or other encumbrances, except for those that, individually
or in the aggregate, do not cause and are not reasonably likely to cause a Material Adverse Effect. All leases of the Company are
valid and subsisting and in full force and effect.

 

(y)          Compliance
with Law. The business of the Company has been and is presently being conducted in accordance with all applicable federal,
state, local and foreign governmental laws, rules, regulations and ordinances, except for such noncompliance that, individually
or in the aggregate, would not cause a Material Adverse Effect. The Company has all franchises, permits, licenses, consents and
other governmental or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted
by it unless the failure to possess such franchises, permits, licenses, consents and other governmental or regulatory authorizations
and approvals, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

(z)          Taxes.
Other than as set forth in the Reports, the Company has accurately prepared and filed all federal, state, foreign and other tax
returns required by law to be filed by it, has paid or made provisions for the payment of all taxes shown to be due and all additional
assessments, and adequate provisions have been and are reflected in the financial statements of the Company for all current taxes
and other charges to which the Company is subject and that are not currently due and payable. None of the federal income tax returns
of the Company have been audited by the Internal Revenue Service (the “IRS”). The Company has no knowledge of
any additional assessments, adjustments or contingent tax liability (whether federal or state) of any nature whatsoever, whether
pending or threatened against the Company for any completed tax period, nor of any basis for any such assessment, adjustment or
contingency.

 

(aa)        Intellectual
Property. The Company owns or possesses all patents, trademarks, domain names (whether or not registered) and any patentable
improvements or copyrightable derivative works thereof, websites and intellectual property rights relating thereto, service marks,
trade names, copyrights, licenses and authorizations as set forth in the Reports, and all rights with respect to the foregoing,
which are necessary for the conduct of its business as now conducted without any conflict with the rights of others except for
such conflicts that would not result in a Material Adverse Effect.

 

    	 

    	 

    

 

(bb)         Environmental
Compliance. The Company has obtained all approvals, authorization, certificates, consents, licenses, orders and permits or
other similar authorizations of all governmental authorities, or from any other person, that are required under any Environmental
Laws and used in its business or in the business of any of its subsidiaries, unless the failure to possess such approvals, authorizations,
certificates, consents, licenses, orders or permits, individually or in the aggregate could not reasonably be expected to have
a Material Adverse Effect. “Environmental Laws” shall mean all applicable laws relating to the protection of
the environment, including, without limitation, all requirements pertaining to reporting, licensing, permitting, controlling, investigating
or remediating emissions, discharges, releases or threatened releases of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, materials or wastes, whether solid, liquid or gaseous in nature, into the air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or
handling of hazardous substances, chemical substances, pollutants, contaminants or toxic substances, material or wastes, whether
solid, liquid or gaseous in nature. Except for such instances as would not individually or in the aggregate have a Material Adverse
Effect, the Company is also in compliance with all other limitations, restrictions, conditions, standards, requirements, schedules
and timetables required or imposed under all Environmental Laws and there are no past or present events, conditions, circumstances,
incidents, actions or omissions relating to or in any way affecting the Company that violate or may violate any Environmental Law
after the Closing Date or that may give rise to any environmental liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study or investigation (i) under any Environmental Law, or (ii) based on or related to the manufacture,
processing, distribution, use, treatment, storage (including without limitation underground storage tanks), disposal, transport
or handling, or the emission, discharge, release or threatened release of any hazardous substance.

 

(cc)         Books
and Records, Internal Accounting Controls. The books and records of the Company and its Subsidiaries accurately reflect in
all material respects the information relating to the business of the Company and its Subsidiaries, the location and collection
of their assets, and the nature of all transactions giving rise to the obligations or accounts receivable of the Company or any
Subsidiary. Other than as set forth in the Reports, the Company and each of its Subsidiaries maintain a system of internal accounting
controls sufficient, in the judgment of the Company, to provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate actions are taken with respect to any differences. Other than
as set forth in the Reports, the Company has established disclosure controls and procedures (as defined in 1934 Act Rules 13a-15(e)
and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material information relating
to the Company, including its Subsidiaries, is made known to the certifying officers by others within those entities.

 

(dd)         Material
Agreements. Neither the Company nor any Subsidiary is a party to any written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement, a copy of which would be required to be filed with the Commission as an exhibit to a registration
statement on Form S-1 or applicable form (collectively, “Material Agreements”) if the Company was registering
securities under the Securities Act that has not been filed with the Commission. The Company has in all material respects performed
all the obligations required to be performed by them to date under the foregoing agreements, has received no notice of default
and is not in default under any Material Agreement now in effect, the result of which could cause a Material Adverse Effect. No
written or oral contract, instrument, agreement, commitment, obligation, plan or arrangement of the Company or of any Subsidiary
limits the payment of dividends on the Common Stock.

 

(ee)         Transactions
with Affiliates. Except as set forth in the Reports, there are no loans, leases, agreements, contracts, royalty agreements,
management contracts or arrangements or other continuing transactions between (i) the Company or any Subsidiary on the one hand,
and (ii) on the other hand, any officer or director of the Company, or any of its Subsidiaries, or any Affiliate.

 

    	 

    	 

    

 

(ff)          Sarbanes-Oxley
Act. Other than as set forth in the Reports, the Company is in material compliance with the applicable provisions of the Sarbanes-Oxley
Act of 2002 (the “Sarbanes-Oxley Act”), and the rules and regulations promulgated thereunder that are effective,
and intends to comply with other applicable provisions of the Sarbanes-Oxley Act and the rules and regulations promulgated thereunder
upon the effectiveness of such provisions.

 

(gg)         Off-Balance
Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any Subsidiary of the
Company and an unconsolidated or other off balance sheet entity that is not disclosed in its financial statements that should be
disclosed in accordance with GAAP and that would be reasonably likely to have a Material Adverse Effect.

 

(hh)         Material
Non-Public Information. Except with respect to the transactions contemplated hereby that will be publicly disclosed, the Company
has not provided any Subscriber or its agents or counsel with any information that the Company believes constitutes material non-public
information.

 

(ii)         Company
Predecessor and Subsidiaries.  The Company makes each of the representations contained in Sections 4(a), (b), (c),
(d), (e), (f), (h), (j), (k), (l), (o), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (aa), (bb), (cc), (dd) and (ff) of this
Agreement, as same relate or could be applicable to each Subsidiary.  All representations made by or relating to the
Company of a historical or prospective nature and all undertakings described in Section 8 shall relate, apply and refer to the
Company and Subsidiaries and their predecessors and successors.

 

(jj)         Correctness
of Representations.  The Company represents that the foregoing representations and warranties are true and correct
as of the date hereof in all material respects, and, unless the Company otherwise notifies the Subscribers prior to the Closing
Date, shall be true and correct in all material respects as of the Closing Date; provided, that, if such representation or warranty
is made as of a different date, in which case such representation or warranty shall be true as of such date.

 

(kk)        Survival.  The
foregoing representations and warranties shall survive the Closing Date for one year and shall not be required to be updated after
the Closing.

 

5.             Regulation
D Offering/Legal Opinions.  The offer and issuance of the Securities to the Subscribers is being made pursuant to
the exemption from the registration provisions of the 1933 Act afforded by Section 4(2) or Section 4(6) of the 1933 Act and/or
Rule 506 of Regulation D promulgated thereunder.  On the Closing Date, the Company will provide an opinion reasonably
acceptable to the Subscribers from the Company’s legal counsel opining on the availability of an exemption from registration
under the 1933 Act as it relates to the offer and issuance of the Securities and other matters reasonably requested by Subscribers.  A
form of the legal opinion is annexed hereto as Exhibit C.  The Company will provide, at the Company’s expense,
to the Subscribers and the Company’s transfer agent, such other legal opinions, if any, as are reasonably necessary in each
Subscriber’s opinion for the issuance and resale of Incentive Shares and Notes pursuant to an effective registration statement,
Rule 144 under the 1933 Act or an exemption from registration.

 

6.             Redemption.  
The Note shall be prepayable, redeemable or callable by the Company, without the Subscriber’s consent as set forth in the
Note.

 

    	 

    	 

    

 

7.             Fees.

 

(a)          Broker’s
Commission.   The Company on the one hand, and each Subscriber (for such Subscriber only) on the other hand, agrees
to indemnify the other against and hold the other harmless from any and all liabilities to any persons claiming brokerage commissions
or similar fees on account of services purported to have been rendered on behalf of the indemnifying party in connection with this
Agreement or the transactions contemplated hereby and arising out of such party’s actions.  The Company represents
that to the best of its knowledge, no person is entitled to receive fees, commissions, finder’s fees, due diligence fees
or similar payments in connection with the Offering. Anything in this Agreement to the contrary notwithstanding, each Subscriber
is providing indemnification only for such Subscriber’s own actions and not for any action of any other Subscriber.  The
liability of the Company and each Subscriber’s liability hereunder is several and not joint.

 

(b)          Fees.  
At the Closing, the Company shall pay to each of Grushko & Mittman, P.C. and Jones & Keller, P.C. fees as set forth on
Schedule 7(b) (“Fees”) as payment for services rendered in connection with the transactions described
in the Transaction Documents and other related services. The Fees will be payable out of funds held pursuant to the Escrow Agreement.  Grushko
& Mittman, P.C. will be reimbursed at Closing by the Company for all lien searches, filing fees, and reasonable printing and
shipping costs for the closing statements to be delivered to Subscribers.

 

8.             Covenants
of the Company.  The Company covenants and agrees with the Subscribers as follows:

 

(a)          Stop
Orders.  Subject to the prior notice requirement described in Section 8(m), the Company will advise the Subscribers
for so long as at least 25,000 Incentive Shares are owned of record Subscribers (the “End Date”), within twenty-four
hours after it receives notice of issuance by the Commission, any state securities commission or any other regulatory authority
of any stop order or of any order preventing or suspending any offering of any securities of the Company, or of the suspension
of the qualification of the Common Stock of the Company for offering or sale in any jurisdiction, or the initiation of any proceeding
for any such purpose.  The Company will not issue any stop transfer order or other order impeding the sale, resale or
delivery of any of the Securities, except as may be required by any applicable federal or state securities laws provided at least
five (5) days prior notice of such instruction is given to the Subscribers.

 

(b)          Listing/Quotation.  The
Company shall promptly secure the quotation or listing of the Incentive Shares upon each national securities exchange, or automated
quotation system upon which the Company’s Common Stock is quoted or listed and upon which such Incentive Shares are or become
eligible for quotation or listing (subject to official notice of issuance) and shall maintain same until the End Date. The Company
will maintain the quotation or listing of its Common Stock on the NYSE Amex Equities, Nasdaq Capital Market, Nasdaq Global Market,
Nasdaq Global Select Market, Bulletin Board, New York Stock Exchange, OTCQB or OTCQX automated quotation system maintained by OTC
Markets Group, Inc., or any similar organization or agency succeeding to its functions of reporting prices (whichever of the foregoing
is at the time the principal trading exchange or market for the Common Stock (the “Principal Market”), and will
comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Principal
Market, as applicable. Subject to the limitation set forth in Section 8(i), the Company will provide Subscribers with copies of
all notices it receives notifying the Company of the threatened and actual delisting of the Common Stock from any Principal Market.  As
of the date of this Agreement and the Closing Date, the OTCQB is the Principal Market.

 

(c)          Market
Regulations.  If required, the Company shall notify the Commission, the Principal Market and applicable state authorities,
in accordance with their requirements, of the transactions contemplated by this Agreement, and shall take all other necessary action
and proceedings as may be required and permitted by applicable law, rule and regulation, for the legal and valid issuance of the
Securities to the Subscribers and promptly provide copies thereof to the Subscribers.

 

    	 

    	 

    

 

(d)          Filing
Requirements.  From the date of this Agreement and until the End Date, the Company will (A) comply in all respects
with its reporting and filing obligations under the 1934 Act, (B) voluntarily comply with all reporting requirements that are applicable
to an issuer with a class of shares registered pursuant to Section 12(g) of the 1934 Act even if the Company is not subject to
such reporting requirements sufficient to permit Subscriber to be able to resell the Incentive Shares pursuant to Rule 144(b)(i),
and (C) comply with all requirements related to any registration statement filed pursuant to this Agreement.  The Company
will use its commercially reasonable efforts not to take any action or file any document (whether or not permitted by the 1933
Act or the 1934 Act or the rules thereunder) to terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under said acts until the End Date.  Until the End Date, the Company will continue the listing
or quotation of the Common Stock on a Principal Market and will comply in all respects with the Company’s reporting, filing
and other obligations under the bylaws or rules of the Principal Market.  The Company agrees to timely file a Form D
with respect to the Securities if required under Regulation D.

 

(e)          Use
of Proceeds.   The proceeds of the Offering will be substantially employed by the Company for the purposes set forth
on Schedule 8(e) hereto.  Except as described on Schedule 8(e), the Purchase Price may not
and will not be used for accrued and unpaid officer and director salaries, nor payment of financing related debt nor redemption
of outstanding notes or equity instruments of the Company nor non-trade payables outstanding on the Closing Date.

 

(f)          DTC
Program.  From and after the Closing Date and until the End Date, the Company will employ as the transfer agent for
the Common Stock and Incentive Shares a participant in the Depository Trust Company Automated Securities Transfer Program and use
its best efforts to cause the Common Stock to be transferable pursuant to such program.

 

(g)          Taxes.  
From the date of this Agreement and until the End Date, the Company will promptly pay and discharge, or cause to be paid and discharged,
when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon the income, profits, property
or business of the Company; provided, however, that any such tax, assessment, charge or levy need not be paid if the validity thereof
shall currently be contested in good faith by appropriate proceedings and if the Company shall have set aside on its books adequate
reserves with respect thereto, and provided, further, that the Company will pay all such taxes, assessments, charges or levies
forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefore.

 

(h)          Properties.  From
the date of this Agreement and until the End Date, the Company will use commercially reasonable efforts to keep all properties
necessary for the conduct of its business in good repair, working order and condition, reasonable wear and tear excepted, and from
time to time make all necessary and proper repairs, renewals, replacements, additions and improvements thereto; and the Company
will at all times comply with each provision of all leases and claims to which it is a party or under which it occupies or has
rights to property if the breach of such provision could reasonably be expected to have a Material Adverse Effect.  The
Company will not abandon any of its assets except for those assets which have negligible or marginal value or for which it is reasonably
prudent to do so under the circumstances.

 

    	 

    	 

    

 

(i)          Confidentiality/Public
Announcement.   From the date of this Agreement and until the End Date, the Company agrees that except in connection
with a Form 8-K, Form 10-Q, Form 10-K and a registration statement or statements regarding the Subscribers’ Securities or
in correspondence with the Commission regarding same, it will not disclose publicly or privately the identity of the Subscribers
unless expressly agreed to in writing by Subscribers or only to the extent required by law and then only upon not less than two
(2) days prior notice to Subscribers.  Not later than four (4) business days after the Closing Date, the Company will
file on Form 8-K describing the Offering as required by the 1934 Act.  In the event that the Company believes that
a notice or communication to Subscribers contains material, nonpublic information relating to the Company or Subsidiaries,
except as required to be delivered in connection with this Agreement, the Company shall so indicate to Subscribers prior to delivery
of such notice or information.  Subscribers will be granted two (2) business days to notify the Company that Subscriber
elects not to receive such information. In the case that Subscriber elects not to receive such information, the Company will not
deliver such information to Subscribers. In the absence of any such Company indication, Subscribers shall be allowed to presume
that all matters relating to such notice and information do not constitute material, nonpublic information relating to the
Company or Subsidiaries.  

 

(j)          Non-Public
Information.  The Company covenants and agrees that except for the Reports, Other Written Information and schedules
and exhibits to this Agreement and the Transaction Documents, which information the Company undertakes to publicly disclose on
the Form 8-K described in Section 8(i) above, neither it nor any other person acting on its behalf will at any time provide any
Subscriber or its agents or counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto such Subscriber, its agent or counsel shall have agreed in writing to accept such information as described
in Section 8(i) above.  The Company understands and confirms that the Subscribers shall be relying on the foregoing representations
in effecting transactions in securities of the Company.  The Company agrees that any information known to Subscriber
not already made public by the Company may be made public and disclosed by the Subscriber.

 

(k)          Negative
Covenants.   So long as a Note is outstanding, without the consent of a Majority in Interest as defined in Section
11(j), the Company will not and will not permit any of its Subsidiaries to directly or indirectly:

 

(i)          create,
incur, assume or suffer to exist any pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim, security interest,
security title, mortgage, security deed or deed of trust, easement or encumbrance, or preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including any lease or title retention agreement, any financing lease
having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement
perfecting a security interest under the Uniform Commercial Code or comparable law of any jurisdiction) (each, a “Lien”)
upon any of its property, whether now owned or hereafter acquired except for (a) Liens upon the Company’s intellectual property
in connection with a license, development, manufacturing or distribution transaction or other partnering arrangement; (b) Liens
imposed by law for taxes that are not yet due or are being contested in good faith and for which adequate reserves have been established
in accordance with GAAP; (c) carriers’, warehousemen’s, mechanic’s, material men’s, repairmen’s and
other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more
than 30 days or that are being contested in good faith and by appropriate proceedings; (d) pledges and deposits made in the ordinary
course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;
(e) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary course of business; (f) Liens created with respect to
the financing of the purchase of new property in the ordinary course of the Company’s business up to the amount of the purchase
price of such property; and (g) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed
by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract
from the value of the affected property (each of (a) through (g), a “Permitted Lien”);

 

    	 

    	 

    

 

(ii)         amend
its certificate of incorporation, bylaws or its charter documents so as to materially and adversely affect any rights of the Subscribers;

 

(iii)        repay,
repurchase or offer to repay, repurchase or otherwise acquire or make any cash dividend or cash distribution in respect of any
of its Common Stock, preferred stock, or other equity securities other than to the extent permitted or required under the Transaction
Documents; or

 

(iv)         except
as set forth on Schedule 8(k)(iv), engage in any transactions with any officer, director, employee or any Affiliate of the
Company, including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee
or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner, in each case in excess of $50,000 other than (i) for payment of salary and bonuses
approved by the Compensation Committee of the Company’s Board of Directors, or fees for services rendered, pursuant to and
on the terms of a written contract in effect at least five days prior to the Closing Date, which contracts may be extended on terms
customary and reasonable within the marketplace, (ii) reimbursement for authorized expenses incurred on behalf of the Company,
(iii) for other employee benefits, including stock option agreements under any stock option plan of the Company disclosed in the
Reports or on Schedule 4(d), or (iv) other transactions disclosed in the Reports.

 

(l)          Offering
Restrictions.  For so long as Notes are outstanding, except for the Excepted Issuances (defined below), the Company
will not enter into an agreement to issue nor issue any equity, convertible debt or other securities convertible into Common Stock
or equity of the Company nor modify any of the foregoing which may be outstanding at anytime, without the prior written consent
of the Subscribers which consent may be withheld for any reason.  Excepted Issuances means (i) full or partial consideration
in connection with a bona fide strategic merger, acquisition, consolidation or purchase of substantially all of the securities
or assets of a corporation or other entity so long as such issuances are not for the purpose of raising capital and which holders
of such securities or debt are not at any time granted registration rights, (ii) the Company’s issuance of securities in
connection with bona fide strategic license agreements and other bona fide partnering arrangements so long as such issuances are
not for the purpose of raising capital and which holders of such securities or debt are not at any time granted registration rights,
(iii) the Company’s issuance of Common Stock or the issuances or grants of options to purchase Common Stock to employees,
directors, and consultants, pursuant to plans described on Schedule 4(d) as such plans are constituted on the Closing
Date or contemplated to be amended or adopted as described on Schedule 4(d), (iv) the exercise, exchange or conversion
of any securities exercisable, exchangeable or convertible for Common Stock issued and outstanding on the date of this Agreement
on the unamended terms disclosed in the Reports and which securities are also described on Schedule 8(p),
and (v) any offering the proceeds of which are used to repay in full all amounts payable in connection with the Notes promptly,
but in no event later than within three business days after the closing of such offering (collectively, the foregoing (i) through
(v) are “Excepted Issuances”).

 

    	 

    	 

    

 

(m)          Seniority.  Except
for Permitted Liens, until the Notes are fully satisfied, without written consent of a Majority in Interest, the Company and Subsidiaries
shall not grant nor allow any security interest to be taken in any assets of the Company or any Subsidiary or any Subsidiary’s
assets, nor except for Permitted Debt, issue or amend any debt, equity or other instrument which would give the holder thereof
directly or indirectly, a right in any equity or assets of the Company or any Subsidiary or any right to payment equal to or superior
to any right of the Subscribers as holders of the Notes in or to such equity, assets or payment, nor issue or incur any debt not
in the ordinary course of business.

 

(n)          Notices.  
For so long as the Subscribers hold any Notes or Incentive Shares, the Company will maintain a United States address and United
States fax number for notice purposes under the Transaction Documents.

 

(o)          Notice
of Event of Default.  The Company agrees to notify Subscriber of the occurrence of an Event of Default (as defined
and employed in the Transaction Documents) not later than five (5) business days after any of the Company’s officers or directors
becomes aware of such Event of Default.

 

9.             Covenants
of the Company Regarding Indemnification.

 

(a)          The
Company agrees to indemnify, hold harmless, reimburse and defend the Subscribers, the Subscribers’ officers, directors, agents,
counsel, Affiliates, members, managers, control persons, and principal shareholders, against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Subscribers or any
such person which results, arises out of or is based upon (i) any material misrepresentation by Company or breach of any representation
or warranty by Company in this Agreement or in any Exhibits or Schedules attached hereto in any Transaction Document, or other
agreement delivered pursuant hereto or in connection herewith, now or after the date hereof; or (ii) after any applicable notice
and/or cure periods, any breach or default in performance by the Company of any covenant or undertaking to be performed by the
Company hereunder, or any other agreement entered into by the Company and Subscribers relating hereto. In no event shall Indemnification
be provided by the Company in respect of punitive or exemplary damages.

 

(b)          In
no event shall the liability of the Subscribers or permitted successor hereunder or under any Transaction Document or other agreement
delivered in connection herewith be greater in amount than the dollar amount of the net proceeds actually received by such Subscriber
or successor upon the sale of Incentive Shares.

 

    	 

    	 

    

 

10.           Additional
Post-Closing Obligations.

 

10.1.        Piggy-Back
Registrations.   If at any time after one year after the Closing Date there is not an effective registration statement
covering all of the Incentive Shares and the Company determines to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the 1933 Act of any of its equity securities, but excluding
Forms S-4 or S-8 and similar forms which do not permit such registration and the Shares may not be sold under Rule 144, then the
Company shall send to each holder of any of the Securities written notice of such determination and, if within fifteen calendar
days after receipt of such notice, any such holder shall so request in writing, the Company shall include in such registration
statement all or any part of the Incentive Shares such holder requests to be registered and which inclusion of such Incentive Shares
will not be subject to customary underwriter cutbacks applicable to all holders of registration rights and any cutbacks in accordance
with guidance provided by the Securities and Exchange Commission (including, but not limited to, Rule 415).  The obligations
of the Company under this Section may be waived by any holder of any of the Securities entitled to registration rights under this
Section 10.1. The holders whose Incentive Shares are included or required to be included in such registration statement are granted
the same rights, benefits, liquidated or other damages and indemnification granted to other holders of securities included in such
registration statement.  In no event shall the liability of any holder of Securities or permitted successor in connection
with any Incentive Shares included in any such registration statement be greater in amount than the dollar amount of the net proceeds
actually received by such Subscriber upon the sale of the Incentive Shares sold pursuant to such registration or such lesser amount
in proportion to all other holders of Securities included in such registration statement. All expenses incurred by the Company
in complying with Section 10, including, without limitation, all registration and filing fees, printing expenses (if required),
fees and disbursements of counsel and independent public accountants for the Company, fees and expenses (including reasonable counsel
fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the NASD, transfer taxes,
and fees of transfer agents and registrars, are called “Registration Expenses.” All underwriting discounts and
selling commissions applicable to the sale of registrable securities are called “Selling Expenses.” The Company
will pay all Registration Expenses in connection with the registration statement under Section 10.  Selling Expenses
in connection with each registration statement under Section 10 shall be borne by the holder and will be apportioned among such
holders in proportion to the number of Shares included therein for a holder relative to all the Securities included therein for
all selling holders, or as all holders may agree.

 

10.2.        Unlegended
Shares and 144 Sales.

 

(a)          Delivery
of Unlegended Shares.  Within three (3) business days (such third (3rd) day being the “Unlegended
Shares Delivery Date”) after the day on which the Company has received (i) a notice that Incentive Shares or any other
Common Stock held by Subscriber has been duly sold pursuant to the plan of distribution in a registration statement or Rule 144
under the 1933 Act, (ii) a representation that the prospectus delivery requirements, or the requirements of Rule 144, as applicable
and if required, have been satisfied, (iii) the original share certificates representing the shares of Common Stock that have been
sold, and (iv) in the case of sales under Rule 144, customary representation letters of the Subscriber and, if required, Subscriber’s
broker regarding compliance with the requirements of Rule 144, the Company at its expense, (y) shall deliver, and shall cause legal
counsel selected by the Company to deliver to its transfer agent (with copies to Subscriber) an appropriate instruction and opinion
of such counsel, directing the delivery of shares of Common Stock without any legends including the legend set forth in Section
4(h) above (the “Unlegended Shares”); and (z) cause the transmission of the certificates representing the Unlegended
Shares together with a legended certificate representing the balance of the submitted Common Stock certificate, if any, to the
Subscriber at the address specified in the notice of sale, via express courier, by electronic transfer or otherwise on or before
the Unlegended Shares Delivery Date.

 

(b)          DWAC.  
In lieu of delivering physical certificates representing the Unlegended Shares, upon request of a Subscriber, so long as the certificates
therefor do not bear a legend and the Subscriber is not obligated to return such certificate for the placement of a legend thereon,
the Company shall cause its transfer agent to electronically transmit the Unlegended Shares by crediting the account of Subscriber’s
prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission system.  Such delivery
must be made on or before the Unlegended Shares Delivery Date.

 

    	 

    	 

    

 

11.           Miscellaneous.

 

(a)          Notices.  All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and,
unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall
be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be: (i) if to the Company, to: MusclePharm Corporation, 4721 Ironton Street, Building
A, Denver, CO 80239, Attn: Brad J. Pyatt, Chief Executive Officer, facsimile: (800) 490-7165, with a copy by facsimile only to:
Jones & Keller, P.C., 1999 Broadway, Suite 3150, Denver, CO 80202, Attn: Reid A. Godbolt, Esq., facsimile: (303) 573-8133,
and (ii) if to the Subscribers, to: the addresses and fax numbers indicated on Schedule 1 hereto, with an additional
copy by fax only to (which shall not constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York
11581, facsimile: (212) 697-3575.

 

(b)          Entire
Agreement; Assignment.  This Agreement and other documents delivered in connection herewith represent the entire
agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by
both parties.  Neither the Company nor the Subscribers has relied on any representations not contained or referred to
in this Agreement and the documents delivered herewith.   No right or obligation of the Company shall be assigned without
prior notice to and the written consent of the Subscribers.

 

(c)          Counterparts/Execution.  This
Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.  This
Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the same
force and effect as if such signature page were an original thereof.

 

(d)          Law
Governing this Agreement.  This Agreement shall be governed by and construed in accordance with the laws of the State
of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning
the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts
located in the state and county of New York.  The parties to this Agreement hereby irrevocably waive any objection to
jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue
or based upon forum non conveniens.  The parties executing this Agreement and other agreements referred to
herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam jurisdiction of such courts
and hereby irrevocably waive trial by jury.  The prevailing party shall be entitled to recover from the other party
its reasonable attorney’s fees and costs.  In the event that any provision of this Agreement or any other agreement
delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall
be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or
rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity
or enforceability of any other provision of any agreement.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction
Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve
process in any other manner permitted by law.

 

    	 

    	 

    

 

(e)          Specific
Enforcement, Consent to Jurisdiction.  The Company and Subscribers acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions
to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, this
being in addition to any other remedy to which any of them may be entitled by law or equity.  Subject to Section 11(d)
hereof, the Company and each Subscriber hereby irrevocably waives, and agrees not to assert in any such suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction in New York of such court, that the suit, action or proceeding
is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.  Nothing in this
Section shall affect or limit any right to serve process in any other manner permitted by law.

 

(f)          Damages.  
In the event the Subscriber is entitled to receive any liquidated or other damages pursuant to the Transactions Documents, the
Subscriber may elect to receive the greater of actual damages or such liquidated damages.  In the event the Subscriber
is granted rights under different sections of the Transaction Documents relating to the same subject matter or which may be exercised
contemporaneously, or pursuant to which damages or remedies are different, Subscriber is granted the right in Subscriber’s
absolute discretion to proceed under such section as Subscriber elects.

 

(g)          Maximum
Payments.   Nothing contained herein or in any document referred to herein or delivered in connection herewith shall
be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable
law.  In the event that the rate of interest or dividends required to be paid or other charges hereunder exceed the maximum
permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the Subscribers
and thus refunded to the Company.  The Company agrees that it may not and actually waives any right to challenge the
effectiveness or applicability of this Section 11(g).

 

(h)          Calendar
Days.   All references to “days” in the Transaction Documents shall mean calendar days unless otherwise
stated.  The terms “business days” and “trading days” shall mean days that the New York Stock
Exchange is open for trading for three or more hours.  Time periods shall be determined as if the relevant action, calculation
or time period were occurring in New York City.  Any deadline that falls on a non-business day in any of the Transaction
Documents shall be automatically extended to the next business day and interest, if any, shall be calculated and payable through
such extended period.

 

(i)          Captions:
Certain Definitions.  The captions of the various sections and paragraphs of this Agreement have been inserted only
for the purposes of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify,
explain, enlarge or restrict any of the provisions of this Agreement.  As used in this Agreement the term “person”
shall mean and include an individual, a partnership, a joint venture, a corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

 

    	 

    	 

    

 

(j)          Consent.  
As used in this Agreement and the Transaction Documents and any other agreement delivered in connection herewith, “Consent
of the Subscribers” or similar language means the consent of holders of more than fifty percent (50%) of the relevant component
of the outstanding Principal Amount of Notes or Incentive Shares, as the case may be, on the date consent is requested (such Subscribers
being a “Majority in Interest”).  A Majority in Interest may consent to take or forebear from any
action permitted under or in connection with the Transaction Documents, modify any Transaction Documents or waive any default or
requirement applicable to the Company, Subsidiaries or Subscribers under the Transaction Documents provided the effect of such
action does not waive any accrued interest or accrued damages and further provided that the relative rights of the Subscribers
to each other remains unchanged.

 

(k)          Severability.  In
the event that any term or provision of this Agreement shall be finally determined to be superseded, invalid, illegal or otherwise
unenforceable pursuant to applicable law by an authority having jurisdiction and venue, that determination shall not impair or
otherwise affect the validity, legality or enforceability: (i) by or before that authority of the remaining terms and provisions
of this Agreement, which shall be enforced as if the unenforceable term or provision were deleted, or (ii) by or before any other
authority of any of the terms and provisions of this Agreement.

 

(l)          Successor
Laws.  References in the Transaction Documents to laws, rules, regulations and forms shall also include successors
to and functionally equivalent replacements of such laws, rules, regulations and forms.  A successor rule to Rule 144(b)(1)(i)
shall include any rule that would be available to a non-Affiliate of the Company for the sale of Common Stock not subject to volume
restrictions and after a six month holding period.

 

(m)          Independent
Nature of Subscribers.     The Company acknowledges that the obligations of each Subscriber under the Transaction
Documents are several and not joint with the obligations of any other Subscriber, and no Subscriber shall be responsible in any
way for the performance of the obligations of any other Subscriber under the Transaction Documents. The Company acknowledges that
each Subscriber has represented that the decision of each Subscriber to purchase Securities has been made by such Subscriber independently
of any other Subscriber and independently of any information, materials, statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may
have been made or given by any other Subscriber or by any agent or employee of any other Subscriber, and no Subscriber or any of
its agents or employees shall have any liability to any other Subscriber (or any other person) relating to or arising from any
such information, materials, statements or opinions.  The Company acknowledges that nothing contained in any Transaction
Document, and no action taken by any Subscriber pursuant hereto or thereto shall be deemed to constitute the Subscribers as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Subscribers are in any way acting
in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.  The
Company acknowledges that it has elected to provide all Subscribers with the same terms and Transaction Documents for the convenience
of the Company and not because Company was required or requested to do so by the Subscribers.  The Company acknowledges
that such procedure with respect to the Transaction Documents in no way creates a presumption that the Subscribers are in any way
acting in concert or as a group with respect to the Transaction Documents or the transactions contemplated thereby.

 

(n)          Equal
Treatment.   No consideration shall be offered or paid to any person to amend or consent to a waiver or modification
of any provision of the Transaction Documents unless the same consideration is also offered and paid to all the Subscribers and
their permitted successors and assigns.

 

    	 

    	 

    

 

(o)          Adjustments.  
The Imputed Value, amount of Incentive Shares, trading volume amounts, price/volume amounts and similar figures in the Transaction
Documents shall be equitably adjusted and as otherwise described in this Agreement, the Notes and other Transaction Documents.

 

[-SIGNATURE PAGES FOLLOW-]

 

    	 

    	 

    

SIGNATURE PAGE TO SUBSCRIPTION
AGREEMENT (A)

 

Please acknowledge your acceptance
of the foregoing Subscription Agreement by signing and returning a copy to the undersigned whereupon it shall become a binding
agreement between us.

 

 

	 	MUSCLEPHARM CORPORATION
	 	a
Nevada corporation
	 	 
	 	By: 	/s/ Brad J. Pyatt
	 	 	Name:
Brad J. Pyatt
Title:
CEO
	 	 	 
	 	 	Dated:
December 4, 2012

  

Subscribers: 

 

	By:	/s/ Brett Nesland	 	 	 
	Name:	Brett Nesland	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Michael Brauser	 	 	 
	Name:	Michael Brauser	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Stuart Smith	 	 	 
	Name:	Stuart Smith	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Barry Honig	 	 	 
	Name:	Barry Honig	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	Frost Gamma Investments Trust	 	 	 
	 	 	 	 	 
	By:	/s/ Philip Frost	 	 	 
	Name:	Philip Frost	 	 	 
	Title:	Trustee	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	Sandor Capital Master Fund	 	 	 
	 	 	 	 	 
	By:	/s/ John S. Lemak	 	 	 
	Name:	John S. Lemak	 	 	 
	Title:	ManagerExhibit 10.3

                               AMENDMENT NO. 1 TO
                                    AGREEMENT

This Amendment No. 1 (the "Amendment No. 1") to that certain Agreement (the
"Agreement") made by and between Landlord/Lessor, Slavko Didic shall be referred
to as "LANDLORD" and Tenant(s)/Lessee, Miami Days Corp. , shall be referred to
as "RENTER." is made this 15th day of November, 2012.

     WHEREAS, the parties entered into the Agreement on August 7, 2012;

     WHEREAS, the parties wish to amend the Agreement, as set forth herein.

     NOW THEREFORE, in consideration of covenants and agreements contained
herein and such other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by each of the parties hereto, the
parties agree as follows:

     1. Definitions. Unless the context otherwise provides, all defined terms
used herein shall have the meaning assigned to them in the Agreement, and the
Agreement shall continue to apply and be effective unless as amended hereby.

     2. Amendment to Section 2 of the Agreement. Section of the Agreement is
hereby amended to add the following sentence:

The LANDLORD agrees to suspend the monthly rent payment of $1,000 until RENTER
raises the necessary funds needed to start operations. LANDLORD will retain the
payment of $2,000 which is non refundable and includes the security deposit and
first month's rent. Renter agrees not to occupy the premises until rent payments
resume. RENTER may occupy the premises once the rent payments resume by
providing 15 days notice of the move in to the LANDLOARD.

     3. Continuing Effect of the Agreement. Except as specifically set forth
herein, the Agreement shall remain in full force and effect and shall not be
waived, modified, superseded or otherwise affected by this Amendment No. 1. This
Amendment No. 1 is not to be construed as a release, waiver or modification of
any of the terms, representations, warranties, covenants, rights or remedies set
forth in the Patent License Agreement, except as specifically set forth herein.

     4. Governing Law. This Amendment No. 1 shall be governed by and construed
in accordance with the laws of the State of Nevada.

     5. Counterparts. This Amendment No. 1 may be executed in several
counterparts, by telecopied facsimile and scanned e-mail attachment, and each
such executed counterpart, telecopied facsimile or scanned e-mail attachment
shall constitute one and the same Amendment No. 1. Page 1 of 2

     6. Effective Date. This Amendment has been executed by the parties hereto
as of the day and year first written.

Page 1 of 2
<PAGE>
     7. Entire Agreement. The Agreement and this Amendment No. 1 contain all of
the terms and conditions agreed upon by the parties relating to the subject
matter of the Agreement and supersede all prior agreements, negotiations,
correspondence, undertakings, and communications of the parties, whether oral or
written, respecting that subject matter.

IN WITNESS WHEREOF, the LANDLORD and the RENTER have executed this Amendment No.
1 in duplicate originals by their respective officers.

Slavko Didic                                    MIAMI DAYS CORP.

By: /s/ Slavko Didic                            By: /s/ Bojan Didic
   -----------------------------                   -----------------------------
Name:  Slavko Didic                             Name:  Bojan Didic
Title: Landlord                                 Title: President

Page 2 of 2

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