Document:

Exhibit

EXECUTIVE AGREEMENT

THIS EXECUTIVE AGREEMENT (the “Agreement”), is made on this 14 day of September, 2018 (the “Effective Date”), by and between Nature’s Sunshine Products, Inc., a Utah corporation, having its principal place of business in Lehi, Utah (the “Company” or “NSP”) and Terrence Moorehead (“Executive”). 

The Company desires to engage Executive to provide services for NSP and Executive desires to provide such services on the terms and conditions below.

1.    Employment.
1.1.    Positions and Duties. Beginning on or before October 1, 2018 (the “Date of Employment”), and continuing until Executive’s employment with the Company is terminated either by the Company’s Board of Directors (the “Board”) or by the Executive (the “Term”), Executive will be employed by the Company as the Company’s Chief Executive Officer and in such capacity will report to the Board. Following the Effective Date, the Board shall appoint Executive to serve on the Board until the next annual meeting of shareholders at which directors are elected. Executive shall devote all of his business time and services to the Company to perform such duties as may be customarily incident to such position of an enterprise of the size and nature of the Company and as may reasonably be assigned from time to time by the Board. Executive will render his services hereunder to the Company, shall use his best efforts, judgment and energy in the performance of the duties assigned to him, shall abide by the Company’s Code of Conduct and any other applicable Company policies, and shall comply with any and all applicable laws, including but not limited to insider trading/reporting requirements and the policies and procedures as may be set forth in the employee handbook, manuals and other materials provided by the Company.
1.2.    Place of Performance. Executive shall perform his services hereunder at the Company’s current principal office in Lehi, Utah, or in another location designated by the Board that is within 50 miles of Lehi, Utah; provided, however, that Executive will be required to travel from time to time as reasonably required for business purposes.
2    Compensation and Benefits.
2.1.    Base Salary. Executive shall receive an annual salary of $650,000 paid in accordance with the Company’s payroll practices, as in effect from time to time. Executive’s base salary shall be subject to review and modification on at least an annual basis by the Board.
2.2.    Discretionary Bonuses. Executive shall be eligible to participate in the Company’s executive bonus program (as modified from time to time in the Board’s discretion) or any successor program (the “EBP”). The EBP, as currently constituted, provides for additional cash compensation commensurate with Executive’s responsibilities based upon company and individual performance measures determined annually by the Board.  For 2018 and based on a commencement date of October 1, 2018, Executive is guaranteed a bonus payment of $162,500 for service during the fourth (4th) quarter of in 2018 (the “2018 Guaranteed Bonus”).  Should Executive not commence his position and duties on October 1, 2018 as set forth in Section 1.1, the amount of the 2018 Guaranteed Bonus will be adjusted pro-rata.  The EBP target shall be 100% of Executive’s base salary for all subsequent years and a maximum bonus potential payout of 175% of target. Other than the 2018 Guaranteed Bonus, payment of any bonus under the EBP is in the Board’s sole discretion and such payments will be made in accordance with Internal Revenue Code Section 409A and the Treasury Regulations thereunder (“Code Section 409A”) and the terms of the EBP.   The Board shall set forth criteria for achievement of the EBP for each year, and the EBP shall be paid to Executive in accordance with the criteria set forth.  If the Board fails to set forth criteria prior to March 15 of the year of performance, Executive shall be paid at target for that performance year.
2.3.    Employee Benefits. Executive will be eligible to participate in retirement/savings, health insurance, term life insurance, long term disability insurance and other employee benefit plans, policies or arrangements maintained by the Company as provided to similarly situated employees and, at the discretion of the Board, in incentive plans, stock option plans and change in control severance plans maintained by the Company for its executives, if any, subject to the terms and conditions of such plans, policies or arrangements.   Benefits may be modified by the Board at any time without notice to Executive. In addition to the employee benefits provided to similarly situated employees, the Company shall provide the following benefits to Executive: (i) a $1,000 per month car allowance; (ii) reimbursement of the cost of an annual executive physical examination; and (iii) $1,000,000 in additional term life insurance coverage above what the Company provides to similarly situated employees, subject to underwriter requirements and approval, as well as limitations or conditions set by the underwriter of such policy, and as permitted by law.
2.4.    Equity. 
2.4.1.    Grant of RSUs. The Company shall grant to Executive, within five (5) days of the Effective Date, an award of restricted stock units (“RSUs”), under the Company’s 2012 Stock Incentive Plan (the “Plan), with a grant date 

fair value of $1,000,000 based on the number of shares and the closing price of the Company’s common stock on the Effective Date, which will vest equally (1/3 each year) over three years from the Effective Date. The Company shall also grant to Executive, within five (5) days of the Effective Date, an award of performance-contingent RSUs under the Plan with a grant date fair value of $1,350,000 based on the number of shares and the closing price of the Company’s common stock on the Effective Date, which will vest based on the Company’s stock price reaching certain milestones to be determined by the Board and set forth in a an RSU Agreement (as defined below). The terms of the RSUs shall be as set forth in the Plan and a separate RSU award agreement (“RSU Agreement”). The Company may from time to time grant to Executive additional RSUs pursuant to the terms and conditions set forth in the then applicable stock incentive plan, as amended from time to time, or as otherwise set forth in an RSU Agreement; provided that for 2019 Executive will be granted RSUs with a grant date fair value of no less than $1,000,000 based on the number of shares and the closing price of the Company’s common stock on the grant date, which grant shall be made during the months of February or March 2019 and will be made up evenly of RSUs subject to time based vesting conditions (1/3 each year from the grant date) and RSUs subject to performance based vesting conditions that will be determined at the discretion of the Board. Executive will be responsible for reporting and paying all state and federal taxes associated with the RSUs in accordance with the Plan and applicable law. Executive should consult Executive’s tax advisor regarding the tax consequences of the RSUs.
2.4.2.    Stock Ownership. Subject to his continued employment with the Company, within four years after the Date of Employment, Executive will acquire (the “Acquisition”), and agrees to maintain at all times thereafter during the Term, ownership of capital stock or a comparable equity position (in each case “Equity”), in the Company having an aggregate value equal to one million dollars ($1,000,000) (the “Held Equity”). Executive may maintain such Held Equity through the vesting of Executive’s grants of stock options and RSUs, in addition to any shares of the Company’s capital stock that Executive then currently owns. For purposes of determining Executive’s compliance with this Section 2.4.2, (i) the value of any shares of the Company’s capital stock owned by Executive shall equal the greater of the then fair market value of such stock or the price paid by Executive to acquire such stock and (ii) the value of any stock options or RSUs held by Executive, shall equal the greater of the then fair market value of any stock represented thereby or, with respect solely to stock options, the strike price required to be paid for any shares of capital stock represented thereby upon exercise. Executive shall execute such agreements and definitive documents as are customary and reasonably requested by Company to evidence and complete the Acquisition and shall ensure that the Acquisition and all transactions included therein are in compliance with applicable laws, rules and regulations. Notwithstanding anything to the contrary, nothing contained in this Section 2.4.2 shall be construed to limit or prevent Executive from obtaining a greater amount of Equity in the Company than the amount of the Held Equity should Executive decide, in his sole and absolute discretion, to acquire or hold any such greater amount of Equity. In the event that Executive wishes or needs to sell any Equity such that his holdings would drop below the Held Equity amount set forth above, such sale shall not constitute a violation of this Section 2.4.2 if Executive obtains the preapproval of such sale by the Compensation Committee of the Board, such preapproval not to be unreasonably withheld, conditioned or delayed.
3.    Indemnification; D & O Insurance. Company shall indemnify Executive to the fullest extent permitted by applicable law with regard to Executive’s actions (or inactions) on behalf of the Company; provided, Executive acted in good faith and in a manner Executive reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, Executive had no reasonable cause to believe Executive’s conduct was unlawful. The Company shall also provide Executive with advancement of legal fees and other expenses on a current basis to the fullest extent permitted by law, subject to Executive entering into an agreement with the Company to repay all amounts which may have been advanced to Executive if it is found in a final judgement that Executive was not entitled to indemnification.  The Company will maintain directors’ and officers’ liability insurance in amounts and on terms reasonable and customary for similarly situated companies.
4.    Reimbursement of Business Expenses. In accordance with the Company’s normal policies for expense reimbursement, the Company shall reimburse Executive for all reasonable travel, entertainment and other expenses incurred or paid by Executive in connection with, or related to, the performance of Executive’s duties, responsibilities or services under this Agreement, upon presentation of documentation, including expense statements, vouchers and/or such other supporting information as the Company may request.
5.    Termination. Upon cessation of his employment with the Company, Executive will be entitled only to such compensation and benefits as described in this Section 5.
5.1.    Termination without Cause or for Good Reason. The Company may terminate Executive’s employment at any time without Cause (as defined below), and Executive may resign at any time with Good Reason (as defined below). If Executive’s employment by the Company is terminated by the Company without Cause, or if Executive resigns for Good Reason:
5.1.1.    the Company shall pay all accrued and unpaid base salary through the date of such termination and reimburse all then unreimbursed expenses properly incurred by Executive pursuant to Section 4;
5.1.2.    provided the Release under Section 5.7 has been executed and become effective and enforceable in accordance with its terms following expiration of the applicable revocation period and Executive complies with the Restrictive Covenants (as set forth in Section 7), the Company shall pay equal installment payments payable in accordance with the Company's normal payroll practices, but no less frequently than monthly, which are in the aggregate equal to  eighteen (18) months (the “Severance Period”) of the Executive’s base salary for the  year in which the termination occurs. The first such 

payment will be made on the sixtieth (60th) day following Executive’s “separation from service” (as such term is defined under Code Section 409A) and will include all unpaid installments through that date that were deferred in compliance with Section 409A, and the remaining payments will be made in accordance with the Company’s normal payroll schedule for salaried employees; 
5.1.3.    provided the Release under Section 5.7 has been executed and become effective and enforceable in accordance with its terms following expiration of the applicable revocation period and Executive complies with the Restrictive Covenants (as set forth in Section 7), the Company shall reimburse Executive for the costs he incurs for continuation of Executive’s health insurance coverage under COBRA (and for his family members if Executive provided for their coverage during his employment) during the Severance Period and in accordance with the NSP group health plans applicable to NSP employees currently in effect. Executive shall, within thirty (30) days after each monthly COBRA payment he pays during the Severance Period for which he is entitled to reimbursement in accordance with the foregoing, submit appropriate evidence of such payment to the Company, and the Company shall reimburse Executive, within ten (10) business days following receipt of such submission. The following provisions shall govern such reimbursement of continuation costs: (i) the amount of the COBRA costs eligible for reimbursement in any one (1) calendar year of coverage will not affect the amount of such costs eligible for reimbursement in any other calendar year for which such reimbursement is to be provided hereunder; (ii) no COBRA costs will be reimbursed after the close of the calendar year following the calendar year in which those costs were incurred; and (iii) Executive’s right to the reimbursement of such costs cannot be liquidated or exchanged for any other benefit. In the event the Company’s reimbursement of the reimbursable portion of any COBRA payment hereunder results in Executive’s recognition of taxable income (whether for federal, state or local income tax purposes), the Company will report such taxable income as taxable W-2 wages and collect the applicable withholding taxes, and Executive will be responsible for the payment of any additional income tax liability resulting from such coverage; and
5.1.4.    Executive’s bonus for the year in which the employment termination occurs, if any, will be pro-rated (except the 2018 Guaranteed Bonus, which will be paid in full) based upon the percentage of the year in which Executive was employed and paid by the Company in accordance with the annual corporate performance criteria established by the Board prior to the start of the year in which termination occurs.  Except as set forth in Section 5.1.5, there will not be any acceleration of Executive’s equity vesting.  If no such performance criteria is set, the bonus shall be paid at target (100% of Base Salary).
5.1.5. Provided the Release under Section 5.7 has been executed and become effective and enforceable in accordance with its terms following expiration of the applicable revocation period and Executive complies with the Restrictive Covenants (as set forth in Section 7), time based vesting and performance-contingent RSUs shall continue to be retained by Executive as if he remained employed during the Severance Period. 
5.1.6.  For purposes of this Agreement, the resignation of Executive for “Good Reason” shall mean (a) a material breach of this Agreement by the Company, (b) a material reduction in Executive's Base Salary other than a general reduction in Base Salary that affects all similarly situated executives in substantially the same proportions, or (c) a material change in Executive’s duties,  responsibilities, title or reporting line; provided, that in each case Executive must provide Company with written notice of the events Executive indicates constitutes grounds for a Good Reason resignation within thirty (30) days of the occurrence of such event.  Failure to give such notice within thirty (30) days of the occurrence shall be deemed a waiver by Executive of his right to terminate for Good Reason with respect to such circumstances.  If Executive provides such notice, the Company thereafter will have thirty (30) days to cure such alleged breach.  If the Company does not cure the alleged breach within the thirty (30) day notice period, Executive must thereafter resign within fifteen (15) days of the expiration of the thirty (30) day notice period in order to resign for Good Reason. 
5.2.    Termination for Cause. The Company may terminate Executive’s employment immediately for Cause. If Executive’s employment with the Company is terminated by the Company for Cause then the Company’s obligation to Executive will be limited solely to the payment of accrued and unpaid base salary through the date of such termination and reimbursement of all then unreimbursed expenses properly incurred by Executive pursuant to Section 4. To terminate Executive’s employment for Cause, the Board must determine that Cause exists, that Executive has been notified of the basis of such determination, and that after a reasonable time to cure such Cause has not done so. 
“Cause” means the Executive’s:
		
	a)
	conviction of, or the entry of a plea of guilty or no contest to, a felony or any crime, whether felony or misdemeanor, that materially adversely affects the business, standing or reputation of the Company or involves moral turpitude, fraud, embezzlement or misappropriation of funds;

		
	b)
	the perpetration of common law fraud;

		
	c)
	any other willful misconduct by the Executive that is materially injurious to the financial condition or business reputation of, or is otherwise materially injurious to, the Company;

		
	d)
	material breach of this Agreement or any written policy of the Company then in effect; or

		
	e)
	willful refusal to perform a lawful and reasonable directive of the Board other than any such failure resulting from Incapacity (as defined below) due to mental or physical illness.

For purposes of this Section 5.2, no act or failure to act on the part of Executive shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company.
5.3.    Resignation by Executive. Executive may resign his employment without Good Reason by giving the Company four weeks’ notice of said resignation; NSP may elect to pay Executive’s base salary in lieu of notice. If Executive resigns without Good Reason, then the Company’s obligation to Executive will be limited solely to the payment of accrued and unpaid base salary through the date of such termination and reimbursement of all then unreimbursed expenses properly incurred by Executive pursuant to Section 4. 
5.4.    Termination upon Death or Incapacity of Executive. The Executive's employment hereunder shall terminate automatically upon the Executive's death during the Employment Term, and the Company may terminate the Executive's employment on account of the Executive's Incapacity. In the event of termination of Executive’s employment by reason of Executive’s death or Incapacity, the provisions governing termination without Cause in Section 5.1 above shall apply (except the Release shall not be required in the case of death). “Incapacity” shall mean the Executive's inability, due to physical or mental incapacity, to substantially perform his duties and responsibilities under this Agreement for one hundred eighty (180) days out of any three hundred sixty-five (365) day period or one hundred twenty (120) consecutive days; provided however, in the event the Company temporarily replaces the Executive, or transfers the Executive's duties or responsibilities to another individual on account of the Executive's inability to perform such duties due to a mental or physical incapacity which is, or is reasonably expected to become, a Incapacity, then the Executive's employment shall not be deemed terminated by the Company and the Executive shall not be able to resign with Good Reason as a result thereof. Any question as to the existence of the Executive's Incapacity as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company. If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement. 
5.5.    Foreign Entities. Without regard to the circumstances of Executive’s termination from employment, Executive hereby also covenants that upon termination, if he is listed as an officer, director, partner, secretary or shareholder on any subsidiary, division or branch of the Company, Executive will sign over any and all rights to stock (except Company stock and stock rights that Executive holds personally) and/or resign as an officer or director of such entity prior to departure from the Company as required by the law applicable to the entity or by that entity’s procedural requirements.
5.6.    Termination in Connection with a Change in Control Event. Provided the Release under Section 5.7 has been executed and become effective and enforceable in accordance with its terms following expiration of the applicable revocation period and Executive complies with the Restrictive Covenants (as set forth in Section 7), in the event: (i) Executive’s employment is terminated for any reason, except for “Cause”, within eighteen (18) months following the occurrence of a Change in Control Event (as defined below) or (ii) Executive terminates his employment within eighteen (18) months following the occurrence of a Change in Control Event for “Good Reason”, Executive will be entitled to the amounts set forth in Section 5.1.1, an amount equal to one and one-half times (1.5x) Executive’s salary and target EBP bonus, and eighteen (18) months of COBRA premium payments, if Executive elects COBRA.  The amounts paid (except with respect to the reimbursement for COBRA) shall be paid in a lump sum payment within five (5) days of any applicable revocation period, except as required by Section 14.2 of this Agreement.  For purposes of this Agreement, a “Change in Control Event” shall mean the occurrence of any one of the following events:
5.6.1.    approval by the stockholders of the Company of a plan of complete dissolution or liquidation of the Company; or
5.6.2.    consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination:  (A) more than 50% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of at least 90% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities (as defined in Section 5.6.4 that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving 

Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors (as defined in Section 5.6.5 at the time of the approval by the Company’s board of directors (the “Board”) of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or
5.6.3.    consummation of a sale of all or substantially all of the Company’s business and/or assets to a person or entity which is not a subsidiary; or
5.6.4.    any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more (an “Acquiring Person”) of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that the event described in this Section 5.6.4 shall not be deemed to be a Change in Control Event by virtue of any of the following acquisitions:  (A) by the Company or any subsidiary, (B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, or (D) pursuant to a Non-Qualifying Transaction, as defined in Section 5.6.2; or
5.6.5.    during any period not longer than two consecutive years, individuals who at the beginning of such period constituted the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the beginning of such period whose election or nomination for election was approved by a vote of a least a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director, provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director.
5.7.    Release and Restrictive Covenants. Notwithstanding any provision of this Agreement, the payments and benefits described in Sections 5.1.2, 5.1.3, 5.6, 7.1.4 and any other Section that incorporates such payment requirements are conditioned on (a) Executive’s execution and delivery to the Company of a release substantially identical to that attached hereto as Exhibit A in a manner consistent with the requirements of the Older Workers Benefit Protection Act, if applicable, and any applicable state law (the “Release”), and (b) Executive’s compliance with the Restrictive Covenants set forth in Section 7 of this Agreement. A breach of the Restrictive Covenants by Executive shall constitute a breach of this Agreement, which shall relieve the Company of any further payment obligation under Sections 5.1.2, 5.1.3, 5.6, and 7.1.4.    
6.    Confidential Information.  The Executive understands and acknowledges that during the Employment Term, he will have access to and learn about Confidential Information, as defined below.  The phrase Confidential Information will be interpreted to include all information of any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to Company or its subsidiaries’ or affiliates’ (including their predecessors) current or potential business and (ii) not generally or publicly known.  Confidential Information includes, without limitation, the information, observations and data obtained by Executive while employed by the Company and its subsidiaries (or any of their predecessors) or while performing services hereunder concerning the business or affairs of the Company or any of its subsidiaries or affiliates; technical information concerning Company software (including source code and object code), products and services, including product data, specifications, documentation, hardware configuration information, diagrams, flow charts, drawings, test results, formulas, algorithms, processes, inventions, research projects, engineering, and product development; business information, including markets, cost information, profits, sales information, accounting and unpublished financial information, business plans, markets and marketing methods, customer lists (including, but not limited to, customers of the Company on whom Executive called or with whom Executive became acquainted during the term of Executive’s Employment), and customer information (including pricing, preferences, discounts and contracts), purchasing techniques, supplier lists, supplier information (including pricing, preferences, discounts, and contracts) and advertising and business strategies; information about employees, including their compensation, strengths, weaknesses and skills, recruiting strategies and goals and hiring criteria; and other information not generally known to the public, which has independent economic value to the owner or discloser of the information or which, if misused or disclosed, could reasonably be expected to adversely affect the business of the owner or discloser of the information.  Provided, however, that the phrase does not include information that (a) was lawfully in Executive’s possession prior to disclosure of such information by the Company; (b) was, or at any time becomes, available in the public domain other than through a violation of this Agreement; (c) is documented by Executive as having been developed by Executive outside the scope of his rendering services hereunder and independently; or (d) is furnished to Executive by a third party not under an obligation of confidentiality to the Company.  Executive agrees that he will not directly or indirectly use or divulge, or permit others to use or divulge, any Confidential Information for any reason, except as authorized in writing by the Company.  Executive will be allowed to disclose such information of the Company to the extent that such disclosure is:
		
	a) 
	duly approved in writing by the Company; 

		
	b) 
	necessary for Executive to enforce his rights under this Agreement in connection with a legal proceeding;  

		
	c) 
	required by law or by the order of a court or similar judicial or administrative body, provided that Executive notify the Company of such required disclosure promptly and cooperates with the Company in any lawful action to contest or limit the scope of such required disclosure; or

		
	d)
	to report possible violations of federal law or regulation to any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.  Executive does not need the prior authorization of the Company to make any such reports or disclosures and he is not required to notify the Company that he has made such reports or disclosures.

Executive’s obligations under this Agreement are in addition to any obligations he has under state or federal law.  Executive agrees that he will not violate in any way the rights that the Company has with regard to trade secrets or proprietary or Confidential Information.  Executive’s obligations under this Section 6 are indefinite in term.
7.    Restrictive Covenants. In consideration of the compensation and other benefits provided to Executive pursuant to this Agreement, Executive agrees to be bound by the provisions of this Section 7 (the “Restrictive Covenants”). These Restrictive Covenants will apply without regard to whether any termination or cessation of Executive’s employment is initiated by the Company or Executive, and without regard to the reason for that termination or cessation.
7.1.    Covenant Not To Compete. Executive covenants and agrees that, during his employment by the Company and for a period of twelve (12) months following immediately thereafter (the “Restricted Period”), Executive will not do any of the following, directly or indirectly:
7.1.1.    own, manage, operate, control, serve as a consultant to, be employed by, participate in, or be connected, in any manner, with the ownership, management, operation or control of any business (i) that distributes its products primarily through independent distributors in a multilevel marketing (MLM) model, or (ii) that materially engages in any activity that competes anywhere in the world in sales or distribution of herbs, vitamins or nutritional supplements (collectively, a “Competing Business”);
7.1.2.    hire or offer to hire any officer, employee or agent of the Company or any of its affiliates;
7.1.3.    divert or take away any customers of the Company, including without limitation anyone who, during the time of Executive’s employment, engaged in discussions with the Company for the purchase of products or services; or
7.1.4.    divert or in any other manner persuade any supplier or vendor of the Company to alter or discontinue its relationship with the Company.    
The geographic limitation to this Section 7.1 is anywhere within the territory where the Company did business during Executive’s employment.  Notwithstanding Executive’s obligations under this Section 7.1, Executive will be entitled to own, as a passive investor, up to two percent (2%) of any publicly traded company without violating this provision.
The Company and Executive agree that: this provision does not impose an undue hardship on Executive and is not injurious to the public; that this provision is necessary to protect the business of the Company and its affiliates; the nature of Executive’s responsibilities with the Company under this Agreement require him to have access to confidential information which is valuable and confidential to the Company; the scope of this Section 7.1 is reasonable in terms of length of time and geographic scope; and adequate consideration supports this Section 7.1, including the consideration herein.
Provided the Release under Section 5.7 has been executed and become effective and enforceable in accordance with its terms following expiration of the applicable revocation period and Executive complies with the Restrictive Covenants (as set forth in Section 7), and as further consideration for this Covenant Not to Compete, in the event Executive resigns without Good Reason or is terminated for Cause, during the Restricted Period, the Company shall continue to pay Executive his base salary and reimburse him for COBRA benefits in the same manner set forth in Paragraph 5.1.3 (the “Non-Compete Payments”).  The Company may, upon ten (10) days’ notice to Executive, cease the Non-Compete Payments, and in such event, the Restricted Period shall also cease. 
7.2.    Covenant Not to Solicit.  During the term of this Agreement and for a period expiring eighteen (18) months after the termination of this Agreement for any reason, Executive covenants and agrees that he will not do, or attempt to do, any of the following, directly or indirectly:
7.2.1. solicit or attempt to solicit any officer, employee or agent of the Company or any of its affiliates to alter or terminate their employment with the Company;

7.2.2. solicit or attempt to solicit any customer or distributor of the Company, including without limitation anyone who, during the time of Executive’s employment, engaged in discussions with the Company for the purchase of products or services, to alter or discontinue its relationship with the Company; or
7.2.3. solicit or attempt to persuade any supplier or vendor of the Company to alter or discontinue its relationship with the Company.
The Company and Executive agree that: this provision does not impose an undue hardship on Executive and is not injurious to the public; that this provision is necessary to protect the business of the Company and its affiliates; the nature of Executive’s responsibilities with the Company under this Agreement require him to have access to confidential information which is valuable and confidential to the Company; the scope of this Section 7.2 is reasonable in terms of length of time and geographic scope; and adequate consideration supports this Section 7.2, including the Consideration herein.
8.    Property of the Company.
8.1.    Proprietary Information. All rights, titles and interest in and to Proprietary Information will be and remain the sole and exclusive property of the Company. Executive will not remove from the Company’s offices or premises any documents, records, notebooks, files, correspondence, reports, memoranda or similar materials of or containing Proprietary Information, or other materials or property of any kind belonging to the Company unless necessary or appropriate in the performance of Executive’s duties to the Company. If Executive removes such materials or property in the performance of Executive’s duties, Executive will return such materials or property promptly after the removal has served its purpose. Executive will not make, retain, remove and/or distribute any copies of any such materials or property, or divulge to any third person the nature of and/or contents of such materials or property, except to the extent necessary to perform Executive’s duties on behalf of the Company. Upon termination of Executive’s employment with the Company, Executive will leave with the Company or promptly return to the Company all originals and copies of such materials or property then in Executive’s possession, custody, or control.
8.2.    “Proprietary Information” means any and all proprietary information developed or acquired by the Company that has not been specifically authorized to be disclosed. Such Proprietary Information shall include, but shall not be limited to, the following items and information relating to the following items: (a) all trade secrets (including research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, methodologies, technical data, designs, drawings and specifications) as well as all inventions (whether patentable or unpatentable and whether or not reduced to practice) and all improvements thereto, (b) computer codes and instructions, processing systems and techniques, inputs, and outputs (regardless of the media on which stored or located) and hardware and software configurations, designs, architecture and interfaces, (c) business research, studies, procedures and costs, (d) financial data, (e) distributor network information, the identities of actual and prospective distributors and distribution methods, (f) marketing data, methods, plans and efforts, (g) the identities of actual and prospective suppliers, (h) the terms of contracts and agreements with, the needs and requirements of and the Company’s course of dealing with, actual or prospective suppliers, (i) personnel information, (j) customer and vendor credit information, and (k) information received from third parties subject to obligations of non-disclosure or non-use. Failure by the Company to mark any of the Proprietary Information as confidential or proprietary shall not affect its status as Proprietary Information.
8.3.    Intellectual Property. Executive agrees that all the Intellectual Property (as defined below) will be considered “works made for hire” as that term is defined in Section 101 of the Copyright Act (17 U.S.C. § 101) and that all right, title and interest in such Intellectual Property will be the sole and exclusive property of the Company. To the extent that any of the Intellectual Property may not by law be considered a work made for hire, or to the extent that, notwithstanding the foregoing, Executive retains any interest in the Intellectual Property, Executive hereby irrevocably assigns and transfers to the Company any and all right, title, or interest that Executive may now or in the future have in the Intellectual Property under patent, copyright, trade secret, trademark or other law, in perpetuity or for the longest period otherwise permitted by law, without the necessity of further consideration. The Company will be entitled to obtain and hold in its own name all copyrights, patents, trade secrets, trademarks and other similar registrations with respect to such Intellectual Property. Executive further agrees to execute any and all documents and provide any further cooperation or assistance reasonably required by the Company to perfect, maintain or otherwise protect its rights in the Intellectual Property, at no cost to Executive. If the Company is unable after reasonable efforts to secure Executive’s signature, cooperation or assistance in accordance with the preceding sentence, whether because of Executive’s incapacity or any other reason whatsoever, Executive hereby designates and appoints the Company or its designee as Executive’s agent and attorney-in-fact to act on his behalf solely for the purpose of executing and filing documents and doing all other lawfully permitted acts necessary or desirable to perfect, maintain or otherwise protect the Company’s rights in the Intellectual Property. Executive acknowledges and agrees that such appointment is coupled with an interest and is therefore irrevocable.  Notwithstanding the foregoing, nothing in this Agreement shall be construed to require Executive to assign or license to the Company any right in or to an invention that (a) is created by Executive entirely on Executive’s own time; and (b) is not an Employment Invention. An “Employment Invention” means any invention or part thereof conceived, developed, reduced to practice, or created by Executive which is (a) conceived, developed, reduced to practice, or created by Executive: (i) within the scope of Executive’s employment; (ii) on the Company’s time; or (iii) with the aid, assistance, or use of any of the Company’s property, equipment, facilities, supplies, resources, or intellectual property; (b) the result of any work, services, or duties performed 

by Executive for the Company; (c) related to the industry or trade of the Company; or (d) related to the current or demonstrably anticipated business, research, or development of the Company.
8. 3.1. “Intellectual Property” means (a) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents and patent applications claiming such inventions, (b) all trademarks, service marks, trade dress, logos, trade names, fictitious names, brand names, brand marks and corporate names, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable works, all copyrights, and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications, registrations, and renewals in connection therewith, (e) all trade secrets (including research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, methodologies, technical data, designs, drawings and specifications), (f) all computer software (including data, source and object codes and related documentation), (g) all other proprietary rights and (h) all copies and tangible embodiments thereof (in whatever form or medium) which, in the case of any or all of the foregoing, pertains to an Employment Invention.
9.    Relocation.  On or before July 1, 2019, Executive shall relocate his primary residence to Utah, within an appropriate daily commuting distance from the Company’s Lehi headquarters.  The Company shall assist in relocating Executive to Utah by providing an upfront payment of $250,000 to be used for relocation expenses.  Any unused portion of the relocation amount will be paid to Executive as a cash bonus disbursement and will be subject to applicable payroll deductions and withholdings.  Executive agrees that if Executive has not relocated to Utah, for any reason, on or before July 1, 2019, Executive will re-pay the Company 100% of the relocation payment.  Executive expressly agrees that the amount of such repayment may be withheld from Executive’s final paycheck and that Executive will sign additional documentation as needed to authorize this repayment.  Additionally, during the first three months following the Date of Employment, the Company will reimburse Executive for airfare to and from New York for him and/or his wife, and, during the three months following the Date of Employment, the Company will also reimburse Executive for hotel expenses in Lehi, or within seventy-five (75) miles thereof. 
10.    Legal Fees.  In addition to the other benefits under this Agreement, the Company shall pay reasonable legal fees incurred by Executive in the review, negotiation and implementation of this agreement up to a maximum amount of $7,500.  
11.    Acknowledgements. Executive acknowledges that the nature of the Executive's position gives him access to and knowledge of Confidential Information and places him in a position of trust and confidence with the Company. The Executive understands and acknowledges that the services he provides to the Company are unique, special or extraordinary.  The Executive further understands and acknowledges that the Company's ability to reserve these for the exclusive knowledge and use of the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure by the Executive is likely to result in unfair or unlawful competitive activity.
The Executive further acknowledges that the amount of his compensation reflects, in part, his obligations and the Company's rights under Section 6, Section 7 and Section 8 of this Agreement; that he has no expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith; that he will not be subject to undue hardship by reason of his full compliance with the terms and conditions of Section 6, Section 7 and Section 8 of this Agreement or the Company's enforcement thereof.
12.    Remedies and Enforcement Upon Breach.
12.1.    Injunctive Relief. In the event of a breach or threatened breach by the Executive of Section 6, Section 7 and Section 8 of this Agreement, the Executive hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief
12.2.    Disclosure of Restrictive Covenants. Executive agrees fully and completely to disclose the existence and terms of this Agreement to any future employer or potential employer of Executive and authorizes the Company, at its election, to make such disclosure.
12.3.    Extension and Termination of Restricted Period. If Executive breaches Section 7 in any respect, the restrictions contained in that section will be extended for a period equal to the period that the Executive was in breach. 
13    Miscellaneous.
13.1.    Other Agreements. Executive represents and warrants to the Company that there are no restrictions, agreements or understandings whatsoever to which Executive is a party that would prevent or make unlawful his execution of this Agreement, that would be inconsistent or in conflict with this Agreement or Executive’s obligations hereunder, or that would otherwise prevent, limit or impair the performance of Executive’s duties under this Agreement.
13.2.    Successors and Assigns. This Agreement shall be binding upon any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, and the Company shall require any such successor to expressly assume and agree in writing to perform this Agreement in the same manner 

and to the same extent that the Company would be required to perform it if no such succession had taken place, or, in the event the Company remains in existence, the Company shall continue to employ Executive under the terms hereof. As used in this Agreement, the term “Company” shall mean and include the Company and any successor to its business and/or assets, which assumes or is obligated to perform this Agreement by contract, operation of law or otherwise. This Agreement shall inure to the benefit of and be enforceable by Executive and his personal or legal representatives, executors, estate, trustee, administrators, successors, heirs, distributees, devisees and legatees. The duties of Executive hereunder are personal to Executive and may not be assigned by him. If Executive dies and any amounts become payable under this Agreement, the Company will pay those amounts to his estate.
13.3.    Governing Law and Enforcement; Disputes. EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH FEDERAL LAW AND THE LAWS OF THE STATE OF UTAH, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE.  ANY DISPUTE ARISING OUT OF THIS AGREEMENT, OR THE BREACH THEREOF, SHALL BE BROUGHT IN A COURT OF COMPETENT JURISDICTION IN SALT LAKE COUNTY, THE STATE OF UTAH, THE PARTIES EXPRESSLY CONSENTING TO VENUE IN IN SALT LAKE COUNTY, THE STATE OF UTAH.  EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT.
13.4.    Waivers. The waiver by either party of any right hereunder or of any breach by the other party will not be deemed a waiver of any other right hereunder or of any other breach by the other party. No waiver will be deemed to have occurred unless set forth in writing. No waiver will constitute a continuing waiver unless specifically stated, and any waiver will operate only as to the specific term or condition waived.
13.5.    Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law. However, if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision, and this Agreement will be reformed, construed and enforced as though the invalid, illegal or unenforceable provision had never been herein contained.
13.6.    Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.
13.7.    Notices. Any notice or communication required or permitted under this Agreement shall be made in writing and shall be sufficient if personally delivered or sent by overnight deliver or email (with receipt of delivery) or by registered or certified mail and addressed, if to Executive, to Executive’s address set forth in NSP’s records, or if to NSP, to its principal office, to the attention of the Corporate Secretary. Such notice shall be deemed given when delivered if delivered personally or by email, or, if sent by registered or certified mail, at the earlier of actual receipt or three days after mailing in United States mail, addressed as aforesaid with postage prepaid.
13.8.    Entire Agreement: Amendments. This Agreement, the attached exhibits, the Plan, and the RSU Agreement contain the entire agreement and understanding of the parties hereto relating to the subject matter hereof; and merge and supersede all prior and contemporaneous discussions, agreements and understandings of every nature relating to Executive’s employment or engagement with, or compensation by, the Company and any of its affiliates or subsidiaries or any of their predecessors. This Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.
13.9.    Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.
13.10.     Section Headings. The headings of sections and paragraphs of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.
13.11.     Counterparts; Facsimile. This Agreement may be executed in multiple counterparts (including by facsimile signature), each of which will be deemed to be an original, but all of which together will constitute one and the same instrument.
13.12.     Third Party Beneficiaries. This Agreement will be binding on, inure to the benefit of and be enforceable by the parties and their respective heirs, personal representatives, successors and assigns. This Agreement does not confer any rights, remedies, obligations or liabilities to any entity or person other than Executive and the Company and Executive’s and the Company’s permitted successors and assigns.
13.13.    Acknowledgment of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.
14.    Section 409A.

14.1.    Section 409A Compliance. The parties intend that this Agreement comply with the requirements of Code Section 409A. To the extent there is any ambiguity as to whether any provision of the Agreement would otherwise contravene one or more requirements or limitations of Code Section 409A, such provision shall be interpreted and applied in a manner that does not result in a violation of the applicable requirements or limitations of Code Section 409A and the Treasury Regulations thereunder. To the extent any continuing compensation, bonus, severance, reimbursements or in-kind benefits due or payable to Executive under this Agreement constitutes “deferred compensation” under Code Section 409A, any such compensation, bonus, severance, reimbursements or in-kind benefits shall constitute and be treated as a series of separate payments under Treasury Regulations Section 1.409A-2(b)(2)(iii) with each such payment made under this Agreement being so designated as a “separate payment” within the meaning of Code Section 409A. In no event shall Executive have the right to designate, directly or indirectly, the calendar year of any payment subject to Code Section 409A.
14.2.    Delayed Commencement Date. Notwithstanding any provision of this Agreement to the contrary, if Executive is a “specified employee” as defined in Code Section 409A, Executive shall not be entitled to any payments or benefits the right to which provides for a “deferral of compensation” with the meaning of Code Section 409A (taking into account all applicable exemptions or exceptions), and whose payment or provision is triggered by Executive’s termination of employment with the Company (whether such payments or benefits are provided to Executive under this Agreement or under any plan or program or arrangement of the Company), including as a result of Executive’s Incapacity (other than Executive being “disabled” within the meaning of Code Section 409A), until the earlier of (i) the date which is the first business day following the six month anniversary of Executive’s “separation from service” as defined in Code Section 409A for any reason other than death, or (ii) Executive’s date of death, and such payments or benefits that, if not for the six month delay described herein, would be due and payable prior to such date shall be made or provided to Executive on such date. The Company shall make the determination as to whether Executive is a “specified employee” in good faith in accordance with its general procedures adopted in accordance with Code Section 409A and, at the time of Executive’s “separation from service” will notify Executive of whether or not Executive is a “specified employee.”
14.3.    Savings Clause. Notwithstanding the other provisions of this Agreement, with respect to any right to a payment or benefit hereunder (or any portion thereof) that does not otherwise provide for a “deferral of compensation” as defined in Code Section 409A, it is the intent of the parties that such payment or benefit will not so provide. Furthermore, if either party notifies the other in writing that, based upon the advice of legal counsel, one or more of the provisions of this Agreement contravenes any regulation or Treasury guidance promulgated under Code Section 409A or causes any amount to be subject to interest or penalties under Code Section 409A, the parties shall promptly and reasonably consult with each other (and their legal counsel (and shall use their reasonable best efforts to reform the provisions hereof to (a) maintain to the maximum extent practicable the original intent of the applicable provisions without violating the provisions of Code Section 409A or increasing the costs to the Company of providing the applicable benefit or payment and (b) to the extent practicable, to avoid the imposition of any tax, interest or other penalties under Code Section 409A upon Executive or the Company.
14.4.    280G. Anything in this Agreement to the contrary notwithstanding, in the event that it shall be determined that any payment, distribution, or other action by the Company to or for Executive’s benefit whether paid or payable or distributed or distributable pursuant to the terms of the Agreement or otherwise (a “Parachute Payment”), would result in an “excess parachute payment” within the meaning of Section 280G(b)(i) of the Code, and the value determined in accordance with Section 280G(d)(4) of the Code of the Parachute Payments, net of all taxes imposed on Executive (the “Net After-Tax Amount”) that Executive would receive would be increased if the Parachute Payments were reduced, then the Parachute Payments shall be reduced by an amount (the “Reduction Amount”) so that the Net After-Tax Amount after such reduction is greatest. For purposes of determining the Net After-Tax Amount, Executive shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the calendar year in which the Parachute Payment is to be made, and (ii) pay applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Parachute Payment is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. Subject to the provisions of this Section 14.4, all determinations required to be made under this Section 14.4, including the Net After-Tax Amount, the Reduction Amount and the Parachute Payments that are to be reduced pursuant to this Section 14.4 and the assumptions to be utilized in arriving at such determinations, shall be made by an independent public accounting firm selected by Executive (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from Executive that there has been a Parachute Payment, or such earlier time as is requested by Executive. The Accounting Firm’s decision as to which Parachute Payments are to be reduced shall be made (a) only from Parachute Payments that the Accounting Firm determines reasonably may be characterized as “parachute payments” under Section 280G of the Code; (b) only from Parachute Payments that are required to be made in cash; (c) only with respect to any amounts that are not payable pursuant to a “nonqualified deferred compensation plan” subject to Code Section 409A, until those payments have been reduced to zero; and (d) in reverse chronological order, to the extent that any Parachute Payments subject to reduction are made over time (e.g., in installments). In no event, however, shall any Parachute Payments be reduced if and to the extent such reduction would cause a violation of Code Section 409A or other applicable law. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company and Executive.

15.    Protected Activity Not Prohibited.  Executive understands that nothing in this Agreement shall in any way limit or prohibit Executive from engaging in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information under the Confidentiality Agreement to any parties other than the Government Agencies. Executive further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. Any language in the Confidentiality Agreement regarding Executive’s right to engage in Protected Activity that conflicts with, or is contrary to, this paragraph is superseded by this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, 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 individual’s attorney 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.

    

	
		
	 
	NATURE’S SUNSHINE PRODUCTS, INC.

	 
	By: /s/ Gregory L. Probert

	 
	Chairman and Chief Executive Officer

	
		
	 
	EXECUTIVE:

	 
	/s/ Terrence MooreheadExhibit 10.7

 

REMEDIATION
AGREEMENT

 

This
Remediation Agreement (hereinafter the “Agreement”) is
dated as of September 24, 2018, by and between FC Global Realty Incorporated,
a Nevada corporation (the “Company”), Opportunity Fund I-SS, LLC,
a Delaware limited liability company (“OFI”), and the other parties signatory hereto.

 

RECITALS

 

A.       On
October 12, 2017, the Company issued to Dolev Rafaeli, Dennis M. McGrath and Yoav Ben-Dror (each a “Note Holder”
and, collectively the “Note Holders”) Secured Convertible Promissory Notes in the principal amounts of $3,133,934,
$977,666 and $1,515,000, respectively (the “Notes”). Pursuant to the terms of the Notes, the principal was
to convert to shares of the Company’s common stock, $0.01 par value per share (the “Common Stock”), at
maturity at the lower of (i) the Per Share Price, which equated to a price of $2.5183 or (ii) the volume-weighted average price
(“VWAP”) with respect to on-exchange transactions in the Company’s Common Stock executed on The Nasdaq
Stock Market (“Nasdaq”) (or such other market on which the Company’s stock may then trade) during the
thirty (30) trading days prior to the maturity date, as reported by Bloomberg L.P.; provided, however, that there was a conversion
floor of $1.75 per share (the “Floor Price”).

 

B.       On
December 22, 2017, the Company and the Note Holders entered into a stock grant agreement (the “Stock Grant Agreement”)
to, among other things, cause the early conversion of the Notes into an aggregate of 5,628,291 shares of the Company’s Common
Stock (the “Payout Shares”), resulting in a conversion price of $0.9997, which is less than the Floor Price.
In addition, pursuant to the Stock Grant Agreement, the Company agreed to (i) issue an additional 1,857,336 shares of Common Stock
to the Note Holders as consideration for the various agreements of the Note Holders contained in the Stock Grant Agreement (the
“Additional Shares”), including the Note Holders’ agreement to give up their first priority security
interest and convert the Notes to equity and (ii) provide the Note Holders with certain cash payments (the “Cash Payments”)
in consideration for services to be provided by the Note Holders, in an amount equal to the amount of interest foregone by the
Note Holders as a result of the conversion of the Notes.

 

C.       
On December 22, 2017, the Company and OFI entered into a Securities Purchase Agreement (the “OFI Purchase Agreement”)
pursuant to which OFI may invest up to $15,000,000 in the Company in a series of closings, in exchange for which OFI will receive
shares of the Company’s Series B Preferred Stock at a purchase price of $1.00 per share. To date, the Company and OFI completed
the three closing under the OFI Purchase Agreement, pursuant to which OFI provided, in the aggregate $3,825,000 to the Company
in exchange for an aggregate of 3,825,000 shares of the Company’s Series B Preferred Stock.

 

D.       Pursuant
to the terms of the Certificate of Designation for the Series B Preferred Stock (the “Series B Certificate of Designation”),
the Series B Preferred Stock, which votes on an as-converted basis, was issued to OFI with a conversion price that constitutes
a discount to the market price of the Common Stock at the date of issuance of the Series B Preferred Stock, resulting in the Series
B Preferred Stock having a greater voting rights than the existing shares of Common Stock, which violates the Nasdaq Voting Rights
rule. On April 20, 2018, the Company and OFI entered into a Supplemental Agreement (the “Supplemental Agreement”),
pursuant to which (i) OFI agreed to limit the voting power of the Series B Preferred Stock, to address this violation, and (ii)
the parties thereto corrected a violation of the Listing Rules of The Nasdaq Stock Market that require approval from the Company’s
stockholders prior to the issuance of Common Stock upon conversion of the Series B Preferred Stock issued under the OFI Purchase
Agreement that are in excess of 19.99% of the Company’s issued and outstanding Common Stock on the date of initial issuance
of the Series B Preferred Stock to OFI, which resulted from a provision in the OFI Purchase Agreement that incorrectly stated
that such percentage is to be calculated as of the applicable conversion date of the Series B Preferred Stock instead of the date
of initial issuance thereof.

 

     

     

    

 

E.       The
Company was notified by letter from Nasdaq dated April 10, 2018, that it is not in compliance with Nasdaq’s Listing Rule
5550(b)(1), which requires the Company to maintain a minimum of $2.5 million in stockholders’ equity.

 

F.       The
parties hereto desire to enter into this Agreement and take all necessary steps contemplated by this Agreement in order to comply
with Listing Rule 5550(b)(1) and address the concerns of the Staff of the Nasdaq regarding the shareholder approval violations
described above.

 

G.       FC
Global will hold a special meeting of its shareholders (the “Shareholders’ Meeting”) as soon as possible
after the date hereof in order to obtain the approval of the FC Global shareholders (the “Shareholder Approval”)
of this Agreement and the transactions contemplated hereby, including, the conversion of the Series C Preferred Stock and the
Series D Preferred Stock into Common Stock.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual promises herein contained, the parties hereto, intending to be legally bound, hereby
agree as follows:

 

1.             Unwinding of
Transactions with the Note Holders. The
Company and the Note Holders hereby agree to the following:

 

(a)           Termination of the Stock Grant Agreement.
Upon execution of the Agreement, the Stock Grant Agreement will automatically terminate and will be of no further force or effect
and no party shall have any liability to any other party arising thereunder.

 

(b)           Cancellation of the Payout Shares.

 

(i)                 
Each of the Note Holders hereby agrees to surrender
to the Company the Payout Shares issued to it under the Stock Grant Agreement free and clear of all claims, charges, liens, contracts,
rights, options, security interests, mortgages, encumbrances and restrictions of every kind and nature, in each case, to the extent
incurred by each of the Note Holders or any of its assignees (collectively, “Claims”) for cancellation concurrently
with, and against delivery of, the issuance of Series C Preferred Stock pursuant to Section 1(c) hereof (it being acknowledged
that any rights of the Company to or with respect to any of the Payout Shares other than under this Agreement shall not be a Claim).
After such cancellation and receipt of the Series C Preferred Stock by each of the Note Holders or its assignees, each of the
Note Holders acknowledges and agrees that all such Payout Shares shall no longer be outstanding, and each of the Note Holders
shall have no further rights with respect to the Payout Shares or the equity ownership in the Company represented thereby.

 

    2 

     

    

 

(ii)               
Each of the Note Holders hereby represents and
warrants that such Note Holder owns the Payout Shares issued to it under the Stock Grant Agreement beneficially and of record,
free and clear of all Claims other than Claims in favor of the Company or any assignee of the Company under this Agreement or
otherwise. Each Note Holder has never transferred or agreed to transfer its Payout Shares, other than pursuant to this Agreement.
There is no restriction affecting the ability of each Note Holder to transfer the legal and beneficial title and ownership of
its Payout Shares to the Company for cancellation other than restrictions, if any, in favor of the Company or any assignee of
the Company. Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor
the performance of this Agreement in compliance with its terms and conditions by each Note Holder will conflict with or result
in any violation of any agreement, judgment, decree, order, statute or regulation applicable to such Note Holder, or any breach
of any agreement to which such Note Holder is a party, or constitute a default thereunder, or result in the creation of any Claim
of any kind or nature on, or with respect to the such Note Holder or its assets.

 

(iii)              
At the request of the Company and without further
consideration, each Note Holder will execute and deliver such other instruments of sale, transfer, conveyance, assignment and
confirmation as may be reasonably requested in order to effectively transfer, convey and assign to the Company for cancellation
its Payout Shares.

 

(c)           Issuance of Series C Preferred Stock.
Upon the execution of this Agreement, the Company shall issue to the Note Holders, in the aggregate, a total of 7,485,627 shares
of newly-designated Series C Preferred Stock in such amounts as set forth in Exhibit A hereto (the “Series C Shares”).
The Series C Preferred Stock has the rights, preferences, and limitations specified in the Certificate of Designation of the Series
C Preferred Stock in the form attached hereto as Exhibit B. The Series C Preferred Stock will automatically convert into
7,485,627 shares of the Company’s Common Stock upon Shareholder Approval being obtained.

 

(d)           Resignations of Dr. Dolev Rafaeli and Mr.
Dennis McGrath. Section 5 of the Stock Grant Agreement provided for the resignations of Dr. Dolev Rafaeli and Mr. Dennis McGrath
effective upon certain events as described therein. Notwithstanding the termination of the Stock Grant Agreement as provided for
in Section 1(a) above, Dr. Dolev Rafaeli and Mr. Dennis McGrath agree that such resignation will survive the termination of the
Stock Grant Agreement, but become effective upon the last to occur of (i) receipt of all of the shares of Common Stock underlying
the Series C Shares and (ii) the date that the shares of Common Stock underlying the Series C Shares are registered for re-sale
in accordance with the Registration Rights Agreement (as defined below). Dr. Dolev Rafaeli and Dennis McGrath hereby represent
and warrant to the Company that their resignation is not the result of any disagreement that either of them has with the Company
or the Board of Directors regarding the Company’s financial or accounting policies or operations.

 

    3 

     

    

 

2.             Unwinding of
Transactions with OFI. The Company and
OFI hereby agree to the following:

 

(a)           Termination of the OFI Purchase Agreement
and the Supplemental Agreement.

 

(i)                 
Subject to Section 2(a)(ii) below, upon execution
of the Agreement, the OFI Purchase Agreement will automatically terminate and will be of no further force or effect, including,
without limitation, OFI’s option under the OFI Purchase Agreement to purchase additional shares of Series B Preferred Stock
and no party shall have any liability to any other party arising thereunder.

 

(ii)               
Notwithstanding Section 2(a)(i) above, the representations
and warranties (the “Reps and Warranties”) contained in Article 3 of the OFI Purchase Agreement and the indemnification
provisions contained in Article 6 of the OFI Purchase Agreement, are hereby incorporated by reference into this Agreement as if
set forth in full herein. The Reps and Warranties are being made as of the date hereof and subject to the exceptions to such Reps
and Warranties set forth on a disclosure schedule to be provided by the Company.

 

(iii)              
Upon execution of the Agreement, the Supplement
Agreement will automatically terminate and will be of no further force or effect and no party shall have any liability to any
other party arising thereunder.

 

(b)           Cancellation of the Series B Stock.

 

(i)                 
OFI hereby agrees to surrender to the Company
the Series B Preferred Stock issued to OFI under the OFI Purchase Agreement free and clear of all Claims for cancellation concurrently
with, and against delivery of, the issuance of Series D Preferred Stock pursuant to Section 2(c) hereof (it being acknowledged
that any rights of the Company to or with respect to any of the Series B Preferred Stock other than under this Agreement shall
not be a Claim). After such cancellation and receipt of the Series D Preferred Stock by OFI or its assignees, OFI acknowledges
and agrees that all such Series B Preferred Stock shall no longer be outstanding, and OFI shall have no further rights with respect
to the Series B Preferred Stock or the equity ownership in the Company represented thereby.

 

(ii)               
OFI hereby represents and warrants that OFI owns
the Series B Preferred Stock beneficially and of record, free and clear of all Claims other than Claims in favor of the Company
or any assignee of the Company under this Agreement or otherwise. OFI has never transferred or agreed to transfer the Series B
Preferred Stock, other than pursuant to this Agreement. There is no restriction affecting the ability of OFI to transfer the legal
and beneficial title and ownership of the Series B Preferred Stock to the Company for cancellation other than restrictions, if
any, in favor of the Company or any assignee of the Company. Neither the execution and delivery of this Agreement, the consummation
of the transactions contemplated hereby, nor the performance of this Agreement in compliance with its terms and conditions by
OFI will conflict with or result in any violation of any agreement, judgment, decree, order, statute or regulation applicable
to OFI, or any breach of any agreement to which OFI is a party, or constitute a default thereunder, or result in the creation
of any Claim of any kind or nature on, or with respect to OFI or its assets.

 

    4 

     

    

 

(iii)              
At the request of the Company and without further
consideration, OFI will execute and deliver such other instruments of sale, transfer, conveyance, assignment and confirmation
as may be reasonably requested in order to effectively transfer, convey and assign to the Company for cancellation the Series
B Preferred Stock.

 

(c)           Issuance of Series D Preferred Stock.
On the date hereof, the Company shall issue to OFI a total of 6,217,490 shares of newly-designated Series D Preferred Stock. The
Series D Preferred Stock has the rights, preferences, and limitations specified in the Certificate of Designation of the Series
D Preferred Stock in the form attached hereto as Exhibit C. The Series D Preferred Stock will automatically convert into
shares of the Company’s Common Stock upon Shareholder Approval being obtained.

 

(d)           Purchase and Sale of the Additional Series
D Preferred Stock. Subject to the terms and conditions of this Agreement, on the last day of each month, commencing on September
30, 2018, OFI shall purchase from the Company $100,000 of shares of Series D Preferred Stock for a purchase price of $0.65 per
share. OFI shall continue to purchase $100,000 of shares, at a purchase price of $0.65 per share, each month until it has purchased
an aggregate of $500,000 of shares of Series D Preferred Stock (not including the shares issued pursuant to Section 2(c) above)
(collectively, the “Series D Shares”); provided that, upon closing of any material business combination involving
the Company that is approved by OFI, OFI shall purchase an additional $1,500,000 of shares of Series D Preferred Stock at a purchase
price of $0.65. Notwithstanding the foregoing, from and after the date that Shareholder Approval has been obtained, instead of
purchasing Series D Shares for $0.65 per share pursuant to this Section 2(d), OFI shall be required to purchase shares of Common
Stock at a price of $0.65 per share. Each purchase and sale of Series D Shares, or shares of Common Stock, as applicable, contemplated
by this Section 2(d) (each, a “Closing”) shall be subject to the following conditions:

 

(i)                 
The representations and warranties of OFI contained
in this Agreement shall be true and correct as of the date when made and as of the Closing as though made on and as of such date.

 

(ii)               
OFI shall have performed, satisfied and complied
with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by it at
or prior to the Closing.

 

(iii)              
The representations and warranties of the Company
contained in this Agreement and the Reps and Warranties incorporated by reference herein pursuant to Section 2(a)(ii) shall be
true and correct as of the date when made and as of the Closing as though made on and as of such date.

 

(iv)             
The Company shall have performed, satisfied and
complied with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with
by it at or prior to the Closing.

 

(v)               
No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority
of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by this Agreement.

 

    5 

     

    

 

(vi)             
Since the date of execution of this Agreement,
no event or series of events shall have occurred that reasonably could have or result in a Material Adverse Effect (as defined
in the OFI Purchase Agreement) or a material adverse change with respect to the Company or its subsidiaries.

 

(vii)            
The Company shall have obtained any and all consents,
permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and sale of the Series
D Shares or shares of Common Stock, as applicable, all of which shall be in full force and effect.

 

(viii)          
At each Closing, the Company shall have delivered
(A) a stock certificate for the requisite number of Series D Shares or shares of Common Stock, as applicable, to be delivered
to OFI at such Closing and (B) a certificate executed on behalf of the Company by its Chief Executive Officer or its Chief Financial
Officer, dated as of the applicable Closing, certifying to the fulfillment of the conditions specified in Sections 2(d)(iii) to
2(d)(vii).

 

(ix)             
At each Closing, OFI shall have delivered payment
for the requisite number of Series D Shares or shares of Common Stock, as applicable, in United States dollars and in immediately
available funds, by wire transfer to the account designated in writing by the Company for such purpose.

 

3.             Termination of
Additional Agreements.

 

(a)           Termination of Voting Agreement. Upon
the execution of the Agreement, the Shareholder Voting Support and Confidentiality Agreement, dated as of December 22, 2017 (and
any amendments thereto), by and among the Note Holders and the Securityholders (as defined therein) will automatically terminate
and will be of no further force or effect and no party shall have any liability to any other party arising thereunder.

 

(b)           Termination of Voting Agreement. Upon
execution of the Agreement, the Shareholder Voting Support and Confidentiality Agreement, dated as of December 22, 2017 (and any
amendments thereto), by and among OFI and the Securityholders (as defined therein) will automatically terminate and will be of
no further force or effect and no party shall have any liability to any other party arising thereunder.

 

(c)           Exchange and Cancellation Agreement. Upon
execution of the Agreement, the Exchange and Cancellation Agreement, dated as of April 20, 2018 (and any amendments thereto),
by and among the Company and OFI will automatically terminate and will be of no further force or effect and no party shall have
any liability to any other party arising thereunder.

 

(d)           Registration Rights Agreements. Upon the
execution of the Agreement, (i) the Registration Rights Agreement, dated as of December 22, 2017 (and any amendments thereto)
by and between the Company and OFI and (ii) the Registration Rights Agreement, dated as of December 22, 2017 (and any amendments
thereto) by and between the Company and the Note Holders will each automatically terminate and will be of no further force and
effect and no party shall have any liability to any other party arising thereunder.

 

    6 

     

    

 

4.              Services Agreements.
Concurrent with the entry into this Agreement, the Company is entering into a services agreement with each of the Note Holders
on the terms specified therein, pursuant to which the support services previously provided by each of the Note Holders under the
Stock Grant Agreement will continue in exchange for cash compensation from the Company as specified in such agreements; provided,
however, that such cash payments will be directly tied to the nature and amount of the services being provided by the Note Holders,
and provided further, that such services agreements will be approved by the non-interested members of the Company’s board
of directors.

 

5.              Registration
Rights Agreement. Upon execution of this
Agreement, the Company will enter into a registration rights agreement with the Note Holders and OFI in the form attached hereto
as Exhibit D.

 

6.              Shareholder Approval.

 

(a)            Proxy Statement.

 

(i)                 
The Company shall prepare in consultation with
OFI and the Note Holders, and file with the Securities and Exchange Commission (the “SEC”) a preliminary proxy
statement relating to (i) the Agreement and the transactions contemplated thereby and (ii) conversion of the Series C Preferred
Stock and the Series D Preferred Stock (a “Proxy Statement”) promptly after the date of this Agreement (and
in no event later than thirty (30) days after the date hereof) and use its reasonable best efforts to:

 

(A)          
obtain and furnish the information required to
be included by the SEC in the preliminary Proxy Statement;

 

(B)          
respond promptly to any comments made by the
SEC or its staff with respect to the preliminary Proxy Statement;

 

(C)          
cause a definitive Proxy Statement (together
with any amendments and supplements thereto) to be mailed to its shareholders as soon as reasonably practicable containing all
information required under applicable law to be furnished to the Company’s shareholders in connection with the matters to
be approved by the shareholders;

 

(D)          
promptly amend or supplement any information
provided by it for use in the preliminary or definitive Proxy Statement (including any amendments or supplements thereof) if and
to the extent that it shall have become false or misleading in any material respect and take all steps necessary to cause the
Proxy Statement as so amended or supplemented to be filed with the SEC and to be disseminated to the Company’s shareholders,
in each case as and to the extent required by applicable United States federal securities laws; and

 

    7 

     

    

 

(E)           
cause the preliminary and definitive Proxy Statements,
on each relevant filing date, on the date of mailing to the Company’s shareholders and at the time of the Shareholders’
Meeting, not to contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading,
and cause the Proxy Statement to comply as to form in all material respects with the provisions of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) and the rules and regulations promulgated thereunder.

 

(b)           Meeting of Company Shareholders. The Company
shall take all action reasonably necessary in accordance with Nevada law and the Company’s articles of incorporation and
bylaws to establish a record date, duly call, give notice of, convene and hold the Shareholders’ Meeting reasonably promptly
after the date of any SEC comments on the Proxy Statement have been resolved and the final Proxy Statement is otherwise ready
for dispatch and, in connection therewith, the Company shall mail the Proxy Statement to the Company’s shareholders in advance
of such meeting. The Proxy Statement shall include the board recommendation of the Company that shareholders approve the proposals
coming before them at the Shareholders’ Meeting, and the Company will use reasonable best efforts to solicit from its shareholders
proxies in favor of the adoption of proposals coming before the Shareholders’ Meeting and to take all other actions necessary
or advisable to pursue the vote or consent of its shareholders, including such actions as are required by the rules and regulations
of the Nadaq or Nevada law or any other applicable laws to obtain such approvals. Unless this Agreement is terminated by the parties
hereto, the Company shall use reasonable best efforts to ensure that any Shareholders’ Meeting (including any adjournment
or postponement thereof) is called, noticed, convened, held and conducted, and that all proxies solicited by it in connection
with the Shareholders’ Meeting (including any adjournment or postponement thereof) are solicited, in compliance with Nevada
law, the Company’s articles of incorporation and bylaws, the rules of the Nasdaq and all other applicable laws.

 

7.             Representations
and Warranties of the parties. Each party
to this Agreement represents and warrants to the other parties to this Agreement as follows:

 

(a)           If such party is an entity, it is validly existing
and in good standing under the laws of its jurisdiction of incorporation or formation, as applicable, and has the requisite power
and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated
by this Agreement.

 

(b)           The execution, delivery and performance by such
party and the consummation by such party of the transactions contemplated hereby have been duly authorized by all necessary action
on the part of such party and no other action is necessary on the part of such party to authorize this Agreement or to consummate
the transactions contemplated hereby.

 

(c)           This Agreement has been duly executed and delivered
by such party and, assuming the due authorization, execution and delivery by the other parties, constitutes a legal, valid and
binding obligation of such party, enforceable against such party in accordance with its terms, except as limited by (i) bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws relating to creditors’ rights generally
and (ii) general principles of equity, whether such enforceability is considered in a proceeding in equity or at law.

 

    8 

     

    

 

(d)              Neither
the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict
with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate,
terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement
to which the party making representations hereunder is a party or by which it is bound or to which any of its assets is subject.

 

(e)               The execution and delivery of this Agreement
by such party does not, and the performance of this Agreement by such party will not, require any consent, approval, authorization
or permit of, or filing with or notification to, any governmental entity.

 

8.                 Further Action.
Subject to the terms and conditions of this Agreement, each of the parties will take all such reasonable and lawful action as
may be necessary or appropriate in order to effectuate the transactions contemplated by this Agreement the agreements attached
hereto as exhibits as promptly as practicable.

 

9.                 Governing
Law; Miscellaneous.

 

(a)              
Governing Law; Dispute Resolution. In
the event of a dispute between any of the parties arising under or relating in any way whatsoever to this Agreement, the disputing
parties shall attempt to resolve it through good faith negotiation. If the dispute is not resolved through such negotiation, then
the disputing parties shall attempt to resolve it through mediation in the State of New York, USA, with a neutral, third-party
mediator mutually agreed upon by the disputing parties. Unless otherwise agreed by the disputing parties, the costs of mediation
shall be shared equally. If the dispute is not resolved through mediation, then upon written demand by one of the disputing parties
it shall be referred to a mutually agreeable arbitrator. The arbitration process shall be conducted in accordance with the laws
of the United States of America and the State of New York, except as modified herein. Venue for the arbitration hearing shall
be the State of New York, USA. All remedies, legal and equitable, available in court shall also be available in arbitration. The
arbitrator’s decision shall be final and binding, and judgment may be entered thereon in a court of competent jurisdiction.
This Agreement shall be interpreted and enforced in accordance with the laws of the United States of America and the State of
New York, without regard to conflict of law principles thereof.

 

(b)             
Counterparts. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying
with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered
shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

(c)               Headings; Interpretation. The headings
of this Agreement are for convenience of reference and shall not form a part of, or affect the interpretation of, this Agreement.
As used herein, unless the context clearly requires otherwise, the words “herein,” “hereunder” and “hereby”
shall refer to the entire Agreement and not only to the Section or paragraph in which such word appears. If any date specified
herein falls upon a Saturday, Sunday or legal holiday in the state of Nevada, the date shall be construed to mean the next business
day following such Saturday, Sunday or legal holiday. For purposes of this Agreement, a “business day” is any day
other than a Saturday, Sunday or legal holiday in the state of New York. Each Party intends that this Agreement be deemed and
construed to have been jointly prepared by the parties. As a result, the parties agree that any uncertainty or ambiguity existing
herein shall not be interpreted against any of them.

 

    9 

     

    

 

(d)              
Severability. If any provision of this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of
this Agreement in any other jurisdiction.

 

(e)               
Entire Agreement; Amendments. This Agreement
and the exhibits, schedules and other appendices hereto contain the entire understanding of the parties with respect to the matters
covered herein and supersede all prior agreements, negotiations and understandings, written or oral, with respect to such subject
matter, including, without limitation, the agreements being terminated hereby. Except as specifically set forth herein, none of
the parties makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
shall be waived or amended other than by an instrument in writing signed by each of the parties hereto. No delay or omission of
any party hereto in exercising any right or remedy hereunder shall constitute a waiver of such right or remedy, and no waiver
as to any obligation shall operate as a continuing waiver or as a waiver of any subsequent breach.

 

(f)                
Reliance. The parties acknowledge and
represent that: (i) they have read the Agreement; (ii) they clearly understand the Agreement and each of its terms; (iii) they
fully and unconditionally consent to the terms of this Agreement; (iv) they have had the benefit and advice of counsel of their
own selection; (v) they have executed this Agreement, freely, with knowledge, and without influence or duress; (vi) they have
not relied upon any other representations, either written or oral, express or implied, made to them by any person; and (vii) the
consideration received by them has been actual and adequate.

 

(g)               
Notices. Any notices required or permitted
to be given under the terms of this Agreement shall be in writing and sent by U. S. Mail or delivered personally or by overnight
courier or via facsimile or e-mail (if via facsimile or e-mail, to be followed within one (1) business day by an original of the
notice document via overnight courier) and shall be effective (i) five (5) business days after being placed in the mail, if sent
by registered mail, return receipt requested, (ii) upon receipt, if delivered personally, (iii) upon delivery by facsimile or
e-mail (if received between 8:00 a.m. and 5:00 p.m. ET; otherwise delivery shall be considered effective the following business
day) or (iv) one (1) business day after delivery to a courier service for overnight delivery, in each case properly addressed
to the party to receive the same. The addresses for such communications shall be as specified on the signature page hereto. Each
party shall provide written notice to the other parties of any change in address.

 

(h)               
Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns; provided,
however, that no party may assign its rights hereunder or delegate its duties hereunder without the prior written consent
of the other parties hereto.

 

    10 

     

    

 

(i)                 
No Third Party Beneficiaries. This Agreement
is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other individual or entity.

 

(j)                
Remedies. No provision of this Agreement
providing for any specific remedy to a party shall be construed to limit such party to that specific remedy, and any other remedy
that would otherwise be available to such party at law or in equity shall also be available. The parties also intend that the
rights and remedies hereunder be cumulative, so that exercise of any one or more of such rights or remedies shall not preclude
the later or concurrent exercise of any other rights or remedies. In addition to being entitled to exercise all rights provided
herein or granted by law, including recovery of damages, each of the parties will be entitled to specific performance under this
Agreement. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach
of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.

 

(k)              
Expenses. Except as otherwise provided
in this Agreement all expenses incurred in connection with this Agreement and the transactions contemplated hereby will be paid
by the party incurring such expenses. As used in this Agreement, “expenses” means the out-of-pocket fees and expenses
of the financial advisor, counsel and accountants incurred in connection with this Agreement and the transactions contemplated
hereby and thereby.

 

(l)                 
Attorney’s Fees. If any party to
this Agreement shall bring any action for relief against another arising out of or in connection with this Agreement, in addition
to all other remedies to which the prevailing party may be entitled, the losing party shall be required to pay to the prevailing
party a reasonable sum for attorney’s fees and costs incurred in bringing or defending such action and/or enforcing any
judgment granted therein, all of which shall be deemed to have accrued upon the commencement of such action and shall be paid
whether or not such action is prosecuted to judgment. Any judgment or order entered in such action shall contain a specific provision
providing for the recovery of attorney’s fees and costs incurred in enforcing such judgment. For the purposes of this Section,
attorney’s fees shall include, without limitation, fees incurred with respect to the following: (i) post-judgment motions,
(ii) contempt proceedings, (iii) garnishment, levy and debtor and third party examinations, (iv) discovery, (v) bankruptcy litigation
and (vi) any appellate proceedings.

 

(m)             
Waiver of Jury Trial. THE PARTIES EACH
WAIVE, TO THE EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT. 

 

[Signature
page follows]

 

    11 

     

    

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date and year first written above.

 

	 	FC
    GLOBAL:
	 	 	 
	 	Fc
                                         Global Realty Incorporated 

	 	 	 
	 	By:	/s/
    Michael R. Stewart
	 	Name:
    Michael R. Stewart
	 	Title:
    Chief Executive Officer
	 	 	 
	 	Address:
      2300 Computer Drive, Building G
	 	 	     Willow
    Grove, PA 19090
	 	 	 
	 	Fax:
	 	Email:
	 	 	 
	 	OFI:
	 	 	 
	 	Opportunity
Fund I-Ss, Llc

	 	By:
    OP Fund I Manager, LLC
	 	 	 
	 	By:	/s/
    Kristen Pigman
	 	Name:  	Kristen Pigman
	 	Title:	Director
	 	 	 
	 	Address:
      2481 Sunrise Boulevard, Suite 200
	 	 	     Gold
    River, CA 95670
	 	 	 
	 	Fax:
	 	Email:
	 	 	 
	 	NOTE
    HOLDERS:
	 	 	 
	 	/s/
    Dr. Dolev Rafaeli
	 	Dr.
    Dolev Rafaeli
	 	 	 
	 	/s/
    Dennis M. McGrath
	 	Dennis
    M. McGrath
	 	 	 
	 	/s/
    Yoav Ben-Dror
	 	Yoav
    Ben-Dror

 

[Signature Page to Remediation Agreement] 

 

     

     

    

EXHIBIT
A

 

	 	Payout
    Shares	Series
    C Preferred Stock
	Dr.
        Dolev Rafaeli

         
	3,134,876	4,169,385
	Dennis
        M. McGrath

         
	977,960	1,300,687
	Yoav
        Ben-Dror

         
	1,515,455	2,015,555

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