Document:

Exhibit 10.2
KUBIENT, INC.
EMPLOYMENT AGREEMENT
This Employment Agreement (the “Agreement”) is made and entered into by and between Leon Zemel (“Executive”) and Kubient, Inc. (the “Company”) (together referred to herein as the “Parties”), dated as of April 9, 2021, and effective as of the Effective Date (as defined below).
R E C I T A L S
A.The Company desires to assure itself of the services of Executive by engaging Executive to perform services under the terms hereof.
B.Executive desires to provide services to the Company on the terms herein provided commencing on April 12, 2021, the date Executive actually commenced employment with the Company (the “Effective Date”).
C.Certain capitalized terms used in this Agreement are defined in Section 11 below.
In consideration of the foregoing, and for other good and valuable consideration, including the respective covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:
		1.
	Employment

(a) “At Will” Employment. Employment with the Company is for no specific period of time. Executive’s employment with the Company will be “at will,” meaning that either Executive or the Company may terminate Executive’s employment at any time and for any reason, with or without cause. Any contrary representations that may have been made to Executive are superseded by this Agreement. This is the full and complete agreement between Executive and the Company related to Executive’s employment with the Company. Although Executive’s job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of Executive’s employment may only be changed in an express written agreement signed by Executive and the Chief Executive Officer of the Company (“CEO”) and approved by the compensation committee of the Board (defined below) (the “Compensation Committee”).
(b)General. The Company shall employ Executive as a full-time employee of the Company effective as of the Effective Date for the period and in the position set forth in this Section 1(d), and upon the other terms and conditions herein provided.
(c)Employment Period. The Executive’s employment pursuant to this Agreement shall commence on the Effective Date and will continue until terminated as
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provided in Sections 3 and 4 herein (the “Employment Period” ).
(d)Position and Duties. On the Effective Date, Executive: (i) shall serve in a full-time capacity as the Chief Product Officer for the Company (“CPO”), with responsibilities, duties, and authority that are usual and customary for such position, subject to direction by the CEO; (ii) shall report directly to the CEO and the board of directors of the Company (the “Board”); and (iii) agrees promptly and faithfully to comply with all present and future policies, requirements, directions, requests and rules and regulations of the Company in connection with the Company’s business. Executive agrees and acknowledges that he holds an executive-level position at that Company and, as such, owes fiduciary duties to the Company.
(e)Location. Subject to the Company’s remote or work-from-home policies during the COVID-19 pandemic or as otherwise mutually agreed to by Executive and CEO, Executive shall be based at the Company’s headquarters in New York, New York, except   for such travel as may be necessary to fulfill Executive’s duties and responsibilities. Executive’s role shall not require his daily physical attendance at the Company’s headquarters in New York, New York, but Executive acknowledges and agrees that there will be times when his attendance is required.
(f)Exclusivity. Except with the prior written approval of the CEO and the Compensation Committee (which may be granted or withheld in their sole and absolute discretion), Executive shall devote Executive’s entire working time, attention, and energies  to the business of the Company and shall not (i) accept any other employment or consultancy, (ii) serve on the board of directors or committees of any other entity; or (iii) engage, directly or indirectly, in any other business activity (whether or  not pursued for pecuniary  advantage) that is or may be competitive with, or that might place Executive in a competing position to, that of the Company or any of its subsidiaries or affiliates. Notwithstanding the foregoing, Executive may devote reasonable time to unpaid activities such as supervision of personal investments and activities involving professional, charitable, educational, religious, civic and similar types of activities, speaking engagements and membership on committees; provided, such activities do not, individually or in the aggregate, interfere with the performance of Executive’s duties and responsibilities under this Agreement, violate the Company’s standards of conduct then in effect, or raise a conflict under the Company’s conflict of interest policies, or otherwise compromise Executive’s fiduciary duties.
2.Compensation and Related Matters
(a)Base Salary. During the Employment Period, Executive’s annual base salary (the “Base Salary”) will be Three Hundred Ninety Thousand Dollars ($390,000) per annum, less payroll deductions and all required withholdings, payable in accordance with the Company’s normal payroll practices. The CEO, the Board, and/or the Compensation Committee shall review Executive’s Base Salary and performance no less than annually within thirty (30) days of the completion of the Company’s audit and implement such increases in Base Salary as they may determine in their sole and absolute discretion
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considering Executive’s performance against established goals and the total compensation of similarly situated executives in peer group companies. As the CPO, Executive shall be an “exempt” employee for purposes of the Fair Labor Standard Act.
(b)Bonus. Commencing with the 2021 calendar year, Executive will be eligible to receive an annual performance bonus with a target achievement equal to twenty percent (20%) of Executive’s Base Salary (the “Annual Bonus”). Any Annual Bonus amount payable shall be based on the achievement of performance goals to be established by the Board or the Compensation Committee. Such performance goals shall be established and communicated in written form prior to the commencement of the performance period or within the first quarter of the performance period. Executive hereby acknowledges and agrees that nothing contained herein confers upon Executive any right to an Annual Bonus in any calendar year and that whether the Company pays Executive an Annual Bonus and the timing of such payment will be determined by the Board or the Compensation Committee in its sole and absolute discretion. Further, following Executive’s ninety (90) day anniversary of employment, Executive will meet with the Compensation Committee and be expected to provide such committee with performance goals for the remainder of the 2021 calendar year. At such meeting, Executive’s performance goals will be set by the Compensation Committee. Whether with respect to any future Annual Bonus or in connection with an annual review of Executive’s performance, the Compensation Committee and the Board may increase Executive’s Base Salary or percentage associated with target achievement for future Annual Bonuses or award additional equity pursuant to the Company’s 2017 Equity Incentive Plan, as then in effect. Such additional equity awards will be made, however, in the sole and absolute discretion of the Board or Compensation Committee.
(c)Share Award. Subject to the approval of the Board or Compensation Committee, the Company will take appropriate action within ninety (90) days following the Effective Date to make an award of One Hundred Thousand (100,000) shares of the Company’s common stock to Executive (“Share Award”). The Share Award will vest at the rate of 1/4th of the total number of shares on the first anniversary of the Effective Date and 1/36th of the total number of remaining unvested shares each month thereafter. Vesting will depend and be contingent upon Executive’s continued employment with the Company through the completion of any vesting date, and any unvested shares will be forfeited upon Executive’s termination of employment from the Company for whatever reason. Executive has consulted with a tax advisor of his choice (or knowingly declined to do so) related to the income taxes that may be due upon the vesting dates of the Share Award. Executive acknowledges and agrees that the Company is authorized to withhold and deduct, including the possibility of withholding vested Shares in an amount equal to the minimum rate required by Federal, state, or local laws.
(d)Benefits. Executive may, to the extent eligible, participate in such employee and executive benefit plans and programs as the Company may, from time to time, offer to its executives, subject to the terms and conditions of such plans and programs. Notwithstanding the foregoing, nothing herein is intended or shall be construed, to require the Company to institute or continue any, or any particular, plan or benefits. The Company
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reserves the right to amend or terminate any employee benefit plan or program, and any executive benefit plan or program, at any time, in its sole discretion, subject to the terms of such plan, program, and applicable law.
(e)Vacation. Executive shall be entitled to vacation, sick leave, holidays and other personnel, paid time-off benefits provided by the Company from time to time which are applicable to the Company’s executive officers in accordance with Company policy. The opportunity to take paid time off is contingent upon Executive’s workload and ability to manage Executive’s schedule and responsibilities.
(f)Business Expenses. Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment, and travel expenses incurred by Executive in connection with the performance of Executive’s duties hereunder in accordance with the Company’s expense reimbursement policies and procedures. In addition to reimbursed expenses, the Company agrees to provide a company owned laptop for business related activity.
3.Termination
(a)Termination Without Cause. The Company may terminate the Executive’s employment relationship without Cause by giving Executive fifteen (15) days’ prior written notice.
(b)Termination Without Good Reason. Executive may terminate the Executive’s employment relationship without Good Reason by giving the Company fifteen (15) days’ prior written notice.
(c)Termination With Good Reason. Executive may terminate the Executive’s employment relationship by following the notice and resignation procedures set forth in the definition of Good Reason.
(d)Termination for Cause. The Company may terminate Executive’s employment for Cause (as defined below) at any time without notice or payment in lieu of notice.
(e)Deemed Resignation. Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned from all offices and directorships, if any, then held with the Company or any of its affiliates, and, at the Company’s request, Executive shall execute such documents as are necessary or desirable to effect such resignations.
4.Obligations upon Termination of Employment
(a)Executive’s Obligations. Executive hereby acknowledges and agrees that all Personal Property (as defined below) and equipment furnished to, or prepared by, Executive in the course of, or incident to, Executive’s employment, belongs to the
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Company and shall be promptly returned to the Company upon termination of Executive’s employment (and will not be kept in Executive’s possession or delivered to anyone else). For purposes of this Agreement, “Personal Property” includes, without limitation, all books, manuals, records, reports, notes, contracts, lists, blueprints, and other documents, or materials, or copies thereof (including computer files), keys, building card keys, company credit cards, telephone calling cards, computer hardware and software, laptop computers, docking stations, cellular and portable telephone equipment, personal digital assistant (PDA) devices and all other proprietary information relating to the business of the Company or its subsidiaries or affiliates. Following termination, Executive shall not retain any written or other tangible material containing any proprietary information of the Company or its subsidiaries or affiliates. In addition, Executive shall continue to be subject to the Confidential Information Agreement (as defined below). The representations and warranties contained herein and Executive’s obligations under this Section 4(a) and the Confidential Information Agreement shall survive the termination of Executive’s employment and the termination of this Agreement.
(b)Payments of Accrued Obligations upon Termination of Employment. Upon termination of Executive’s employment for any reason, Executive (or Executive’s estate or legal representative, as applicable) shall be entitled to receive, within ten (10) days after the date Executive terminates employment with the Company (or such earlier date as may be required by applicable law): (i) any portion of Executive’s Base Salary earned through Executive’s termination date not theretofore paid; (ii) any expenses owed to Executive under Section 2(f) above; (iii) subject to Company policy and the law, any accrued, but unused vacation pay owed to Executive pursuant to Section 2(e) above, pursuant to Company policy, if any, to the extent not inconsistent with applicable laws; (iv) any amount arising from Executive’s participation in, or benefits under, any employee benefit plans, programs, or arrangements under Section 2(d) above, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs, or arrangements.
(c)Benefits upon Covered Termination. If Executive experiences a Covered Termination (as defined below), and if Executive executes a general release of all claims against the Company and its affiliates in substantially the form provided by the Company in its sole discretion (the “Release of Claims”) that becomes effective and irrevocable within sixty (60) days, or such shorter period of time specified by the Company, following such Covered Termination, then, in addition to any accrued obligations payable under Section 4(b) above, the Company shall provide Executive with the following:
(i)Severance Pay. A cash payment equal to six (6) months of Executive’s Base Salary at the rate in effect immediately prior to the Executive’s date of termination, less applicable taxes and withholdings and payable in regular, equal installments commencing on the first regularly- scheduled payroll date after the effective date of the Release of Claims.
(ii)Severance Benefits. If Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall reimburse
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Executive for the difference between the monthly COBRA premium paid by Executive for Executive and Executive’s dependents and the monthly premium amount paid by similarly situated active executives (“COBRA Subsidy”). Such COBRA Subsidy reimbursement shall be paid to Executive on the last day of each month immediately following the month in which Executive timely remits the premium payment. Executive shall be eligible to receive such COBRA Subsidy reimbursement until the earliest of: (i) the six (6) month anniversary of Executive’s termination date; (ii) the date Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the date on which Executive becomes eligible to receive similar coverage from another employer or other source. Notwithstanding the foregoing, if the Company’s making payments under this Section 4(c)(ii) would violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the “ACA”) or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder), the Parties agree to reform this Section 4(c)(ii) in a manner as is necessary to comply with the ACA.
(iii)Pro-Rated Bonus. Executive shall be eligible to receive his Annual Bonus for the year in which the Covered Termination of employment occurs to the extent earned based on the attainment of applicable performance goals as determined by the Board in its sole discretion following the end of the calendar year in which the Covered Termination date occurs, pro-rated based on the total number of days elapsed (and worked by Executive) in the calendar year as of the termination of employment date. If and to the extent earned, such pro-rated bonus shall be paid out at the same time annual bonuses are paid generally to senior executives of the Company for the relevant year, less applicable withholdings, but in no event later than March 15th of the calendar year immediately following that in which such pro-rated bonus may have been earned.
		(iv)
	Accelerated Vesting.

(A)Twenty five percent (25%) of the Share Award described in Section 2(c) will vest, if before the one (1) year anniversary of the Effective Date, (1) the Company terminates Employee’s employment and this Agreement without Cause, or (2) the Employee terminates his employment and this Agreement for Good Reason. The vesting shall be accelerated effective immediately prior to such termination date with respect to that number of shares subject to Executive’s then outstanding Share Award that would have been vested.
(B)One hundred percent (100%) of the remaining unvested Share Award described in Section 2(c) will vest, if on or after the one
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(1) year anniversary of the Effective Date, (1) the Company terminates Employee’s employment and this Agreement without Cause, or (2) the Employee terminates his employment and this Agreement for Good Reason. The vesting shall be accelerated effective immediately prior to such termination date with respect to that number of shares subject to Executive’s then outstanding Share Award that would have been vested.
(C)One hundred percent (100%) of the remaining unvested Share Award described in Section 2(c) will vest upon a Change in Control (as defined below) event as long as Executive is employed by the Company on the closing date of such Change in Control event. The vesting shall be accelerated effective immediately prior to such Change in Control with respect to that number of shares subject to Executive’s then outstanding Share Award that would have been vested.
(d)No Other Severance. The provisions of this Section 4 shall supersede, in their entirety, any severance payment or other arrangement provided by the Company, including, without limitation, any severance plan or policy of the Company.
(e)No Requirement to Mitigate; Survival. Executive shall not be required to mitigate the amount of any payment provided for under this Agreement by seeking other employment or in any other manner. Notwithstanding anything to the contrary in this Agreement, the termination of Executive’s employment shall not impair the rights or obligations of any party except as provided for in the General Release to be executed by Executive in connection with a Covered Termination and Section 4(c) above.
(f)Certain Reductions. The Company shall reduce Executive’s severance benefits under this Agreement, in whole or in part, by any other severance benefits, pay in lieu of notice, or other similar benefits payable to Executive by the Company in connection with Executive’s termination, including but not limited to payments or benefits pursuant to (i) any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act, or (ii) any Company policy or practice providing for Executive to remain on the payroll without being in active service for a limited period of time after being given notice of the termination of Executive’s employment. The benefits provided under this Agreement are intended to satisfy, to the greatest extent possible, any and all statutory obligations that may arise out of Executive’s termination of employment. Such reductions shall be applied on a retroactive basis, with severance benefits previously paid being recharacterized as payments pursuant to the Company’s statutory obligation.
5.Limitation on Payments
(a)Notwithstanding anything in this Agreement to the contrary, if any payment or distribution Executive would receive pursuant to this Agreement or otherwise
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(“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts of the Payment are paid to Executive, which of the following alternative forms of payment would maximize Executive’s after-tax proceeds: (A) payment in full of the entire amount of the Payment (a “Full Payment”) or (B) payment of only a part of the Payment, so that Executive receives that largest Payment possible without being subject to the Excise Tax (a “Reduced Payment”), whichever of the foregoing amounts, taking into account the applicable federal, state, and local income taxes and the Excise Tax (all computed at the highest marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes), results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all or some portion the Payment may be subject to the Excise Tax.
(b)If a Reduced Payment is made pursuant to this Section 5, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment alternative, and Executive shall have no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction in payments and/or benefits will occur in the following order: (1) reduction of cash payments; (2) cancellation of accelerated vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of stock options; and (4) reduction of other benefits payable to Executive. In the event that acceleration of compensation from Executive’s equity awards is to be reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant.
(c)All determinations required to be made under this Section 5 shall be made by such adviser as may be selected by the Company; provided, that the adviser’s determination shall be made based upon “substantial authority” within the meaning of Section 6662 of the Code. The adviser shall provide its determination, together with detailed supporting calculations and documentation, to Executive and the Company within thirty (30) business days following the date of termination of Executive's employment, if applicable, or such other time as requested by Executive (provided, that Executive reasonably believes  that  any  of the Payments may be subject to the Excise Tax) or the Company. All reasonable fees and expenses of the adviser in reaching such a determination shall be borne solely by the Company.
6.Successors
(a)Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in
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the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this Section 6(a) or which becomes bound by the terms of this Agreement by operation of law.
(b)Executive’s Successors. The terms of this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable by, Executive’s legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees as the circumstances permit.
7.Notices
Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or one (1) day following transmission via paid, overnight Federal Express or similar courier service.  In the case of Executive, mailed notices shall be addressed to Executive at Executive’s home address that the Company has on file for Executive. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of the CEO of the Company with a copy (which shall not constitute notice) to Saul Ewing Arnstein & Lehr LLP, c/o Marc J. Adesso, 161 N. Clark Street, Suite 4200, Chicago Illinois 60601.
8.Dispute Resolution
To ensure the timely and economical resolution of disputes that arise in connection with this Agreement, Executive and the Company agree that any and all controversies, claims, and disputes arising out of or relating to this Agreement, including without limitation any alleged violation of its terms, shall be resolved solely and exclusively by final and binding arbitration held in New York County, New York through Judicial Arbitration & Mediation Services (“JAMS”) in conformity with the then-existing JAMS employment arbitration rules and New York law. The arbitrator shall:  (a) provide adequate discovery for the resolution of the dispute; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall award the prevailing Party attorneys’ fees and costs, and expert fees, if any. Notwithstanding the foregoing, it is acknowledged that it will be impossible to measure in money the damages that would be suffered if the Parties fail to comply with any of the obligations imposed on them under Section 10(a) hereof, and that in the event of any such failure, an aggrieved person will be irreparably damaged and will not have an adequate remedy at law. Any such person shall, therefore, be entitled to injunctive relief, including specific performance, to enforce such obligations, and if any action shall be brought in equity to enforce any of the provisions of Section 10(a) of this Agreement, none of the Parties hereto shall raise the defense that there is an adequate remedy at law. Executive and the Company understand that by agreement to arbitrate any claim pursuant to this Section 8, they will not have the right to
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have any claim decided by a jury or a court, but shall instead have any claim decided through arbitration. Executive and the Company waive any constitutional or other right to bring claims covered by this Agreement other than in their individual capacities. Except as may be prohibited by applicable law, the foregoing waiver includes the ability to assert claims as a plaintiff or class member in any purported class or representative proceeding. Employee represents and warrants that he has had the opportunity to consult with counsel regarding this Section and understands the rules and procedures of JAMS.
9.Section 409A
(a)General. The intent of the Parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date (“Section 409A”) and, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance with or exempt from Section 409A. If the Company determines that any provision of this Agreement would cause Executive to incur any additional tax or interest under Section 409A (with specificity as to the reason there for), the Company and Executive shall take commercially reasonable efforts to reform such provision to try to comply with or be exempt from Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Section 409A, provided that any such modifications shall not increase the cost or liability to the Company. To the extent that any provision hereof is modified in order to comply with or be exempt from Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Executive and the Company of the applicable provision without violating the provisions of Section 409A.
(b)Separation from Service. Notwithstanding any provision to the contrary in this Agreement, no amount that is deemed a “deferral of compensation” subject to Section 409A shall be payable pursuant to Section 4 above unless Executive’s termination of employment constitutes a “separation from service” with the Company within the meaning of Section 409A (“Separation from Service”) and, except as provided under Section 9(c) below, any such amount shall not be paid, or in the case of installments, commence payment, until the sixtieth (60th) day following Executive’s Separation from Service. Any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s Separation from Service, but for the preceding sentence shall be paid to Executive on the sixtieth (60th) day following Executive’s Separation from Service and the remaining payments shall be made as provided in this Agreement.
(c)Specified Employee. Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed at the time of his Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent
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delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six (6) month period measured from the date of Executive’s Separation from Service or (ii) the date of Executive’s death. Upon the first day of the seventh (7th) month following the date of the Executive’s Separation from Service, all payments deferred pursuant to this Section 9(c) shall be paid in a lump sum to Executive, and any remaining payments due under this Agreement shall be paid as otherwise provided herein.
(d)Expense Reimbursements. To the extent that any reimbursements payable pursuant to this Agreement are subject to the provisions of Section 409A, any such reimbursements payable to Executive pursuant to this Agreement shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed in one (1) year shall not affect the amount eligible for reimbursement in any subsequent year, and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.
(e)Installments. For purposes of Section 409A including, without limitation, for purposes of Treasury Regulation §1.409A-2(b)(2)(iii)), Executive’s right to receive any installment payments under this Agreement shall be treated as a “right to receive a series of separate payments” and, accordingly, “each such installment payment shall at all times be considered a separate and distinct payment.”
10.Miscellaneous Provisions
(a)Work Eligibility; Confidentiality Agreement. As a condition of Executive’s employment with the Company, Executive will be required to provide evidence of Executive’s identity and eligibility for employment in the United States. It is required that Executive brings the appropriate documentation with Executive at the time of employment. As a further condition of Executive’s employment with the Company, Executive shall enter into and abide by the Company’s Confidential Information, Invention Assignment and Arbitration Agreement (the “Confidential Information Agreement”).
(b)Withholdings and Offsets. The Company shall be entitled to withhold from any amounts payable under this Agreement, in cash or in kind, any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise. If Executive is indebted to the Company at his termination date, the Company reserves the right to offset any severance payments under this Agreement by the amount of such indebtedness.
(c)Waiver. No provision of this Agreement  shall  be modified,  waived, or discharged unless the modification, waiver, or discharge is agreed to in writing and signed by Executive and by an authorized director or officer of the Company (other than
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Executive). No waiver by either Party of any breach of, or of compliance with, any condition or provision of this Agreement by the other Party shall be considered a waiver  of any other condition or provision or of the same condition or provision at another time.
(d)Whole Agreement. This Agreement and the Confidential Information Agreement (together with any equity award agreement between the Company and Executive) represent the entire understanding of the Parties hereto with respect to the subject matter hereof and supersede all prior arrangements and understandings regarding same, including that offer letter dated March 6, 2021.
(e)Amendment. This Agreement cannot be amended or modified except by a written agreement signed by Executive and an authorized member of the Company.
(f)Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New York without giving effect to any conflicts of law provisions.
(g)Severability. The finding by a court of competent jurisdiction of the unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal. Such court shall have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or provision which most accurately represents the intention of the Parties hereto with respect to the invalid or unenforceable term or provision.
(h)Interpretation; Construction. The headings set forth in this Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but Executive has been encouraged to consult with, and has consulted with, Executive’s own independent counsel and tax advisors with respect to the terms of this Agreement. Company will reimburse Executive for reasonable attorneys’ fees and costs incurred by Executive in connection with the review of this Agreement up to a total taxable reimbursement of Thousand Five Hundred Dollars ($2,500); provided that, Executive submits copies of the invoices associated with such legal services within forty five (45) days of the last day of each calendar month legal services were incurred; provided, further that, such invoices may be redacted by Executive to preserve attorney-client privilege. The Parties hereto acknowledge that each Party hereto and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and any rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this Agreement.
(i)Representations; Warranties. Executive represents and warrants that Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that Executive’s execution and performance of this Agreement will not violate or breach any other agreements between Executive and any other person or entity and that Executive has not engaged in any act or omission that could be reasonably expected to result in or lead to an event constituting “Cause” for purposes of this Agreement. The representation and warranties contained in this Section 10(i) are material to the Company entering into this
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Agreement with Executive.
(j)Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one (1) and the same instrument.
(k)Non-Disparagement. Executive agrees and covenants that Executive will not at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning Company or any of its employees, officers, existing and prospective customers, suppliers, investors and other associated third parties. This Section 10(k) does not, in any way, restrict or impede Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency; provided that, such compliance does not exceed that required by the law, regulation, or order. Executive shall promptly provide written notice of any such order to the Board.
		11.
	Definition of Terms

The following terms referred to in this Agreement shall have the following meanings:
(a)“Cause” means any one (1) or more of the following:  (i) Executive’s willful failure substantially to perform his duties and responsibilities to the Company or deliberate violation of a Company policy; (ii) Executive’s commission of any act  of fraud, embezzlement, dishonesty or any other willful misconduct that has caused  or is reasonably expected to result in material injury to the Company; (iii) unauthorized use or disclosure by Executive of any proprietary information or trade secrets of the Company or any other party to whom Executive owes an obligation of nondisclosure as a result of his relationship with the Company; (iv) Executive's willful  breach of any of his obligations under any written agreement or covenant with the Company, including, without limitation, this Agreement or the Confidential Information Agreement; or (v) Executive’s violation of Section 10(i) of this Agreement. With respect to clause (i) above, prior to terminating Executive for Cause, (A) the Company shall provide written notice of the events and circumstances giving rise to Cause, (B) the Executive shall have thirty (30) days to cure, and (C) the Executive must have failed to cure within such thirty (30) day cure period.
(b)“Change in Control” means:  (i) the liquidation, dissolution, or winding up of the Company; (ii) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganizations, provided that the applicable transaction shall not be deemed a Change in Control unless the Company’s stockholders constituted immediately  prior to such transaction  do  not hold more than fifty percent (50%) of the voting power of the surviving or acquiring entity (or its parent) immediately following such transaction (taking into account only voting power resulting from stock held by such stockholders prior to such transaction); (iii) any transaction or series of related
​

​
transactions to which the Company is a party in which in excess of fifty percent (50%) of the Company’s voting power outstanding before such transaction is transferred; or (iv) a sale, conveyance or other disposition of all or substantially all of the assets of the Company (including without limitation a license of all or substantially all of the Company’s intellectual property that is either exclusive or otherwise structured in a manner that constitutes a license of all or substantially all of the assets of the Company); provided that a Change in Control shall not include (A) a merger or consolidation with a wholly- owned subsidiary of the Company, (B) a transaction effected exclusively for the purpose of changing the domicile or state of incorporation of the Company, or (C) any transaction or series of related transactions principally for bona fide equity financing purposes in which the Company is the surviving corporation. Notwithstanding the foregoing, a “Change in Control” must also constitute a “change in control event,” as defined in Treasury Regulation §1.409A-3(i)(5) with respect to any compensation or benefit that is subject to Section 409A.
(c)“Covered Termination” shall mean the termination of Executive’s employment either (i) by the Company without Cause; or (ii) by Executive for Good Reason.
(d)“Good Reason” means Executive’s resignation from all positions he then holds with the Company that is effective within one hundred twenty (120) days after the occurrence, without Executive’s written consent, of any of the following: (i) a material reduction in Executive’s Base Salary, as in effect immediately prior to such reduction (other than in connection with a general reduction of base salaries applicable to all similarly-situated executives); (ii) the relocation of Executive’s primary work location to a facility or a location more than fifty (50) miles from Executive’s then present location; (iii) requiring Executive’s daily physical attendance at the Company’s headquarters in New York, New York, other than those times when his attendance is required. Notwithstanding the foregoing, a resignation shall not constitute a resignation for “Good Reason” unless the Executive provides written notice of such condition to the Company within thirty (30) days of the first occurrence of such condition. Upon receipt of such notice, the Company has thirty (30) days to cure such noticed condition. Executive’s resignation must be effective within thirty (30) days after the expiration of such thirty (30) day cure period.
[Signature page follows]
​
​

​
IN WITNESS WHEREOF, each of the Parties has executed this Employment Agreement as of the day and year set forth below.
​
	​

	​

	​
	KUBIENT, INC.

	​
	​

	​
	/s/ paul Roberts

	​
	​

	​
	Title: Chief Executive Officer

	​
	Date: Apr 9, 2021

	​
	​

	​
	​

	​
	EXECUTIVE

	​
	/s/ Leon Zemel

	​
	Leon Zemel

	​
	Apr 9, 2021

​Exhibit 10.1

 

AGREEMENT

 

This
Agreement (this “Agreement”) is entered into as of May 12, 2021 (the “Effective Date”) by MusclePharm
Corporation, a Nevada corporation (the “Company”), and Joseph Cannata, a California resident (“Service Provider”).
The Company and the Service Provider are referred to in this Agreement individually as a “party” and collectively as the
“parties.”

 

Recitals

 

WHEREAS,
The Company is, among other things, in the business of developing and selling athletic performance powders, capsules, tablets and gels;

 

WHEREAS,
In connection with the Company’s strategy to grow sales of its MP Energy drinks and other beverage products (collectively, the
“Products”), the Company desires to engage the Service Provider upon the terms and subject to the conditions in this
Agreement; and

 

WHEREAS,
The Service Provider desires to provide such services to the Company upon the terms and subject to the conditions in this Agreement.

 

NOW,
THEREFORE, the parties hereby agree as follows:

 

	1.	Performance
    Activities. The Company hereby engages the Service Provider, and the Service Provider accepts such engagement, to, on a non-exclusive
    basis, generate sales of the Products (the “Performance Activities”). Without limiting the foregoing, the Performance
    Activities will include (i) developing sales and pricing strategies for the Products, (ii) advising on the creation of marketing
    materials, (iii) advising on the creation and implementation of promotional activities, (iv) developing target lists of sales prospects
    and (v) making sales calls to customers and prospective customers. The Company shall have sole discretion over (i) products pricing
    and other sales terms, (ii) any other customer decisions (including decisions whether to sell to particular customers and the quantities
    to be sold), (iii) production decisions, including products formulations, products manufacturers and quantities produced, (iv) any
    other decisions that require the expenditure of funds by the Company, including marketing and promotional activities and (v) any
    action or omission that the Company determines might be injurious to its brand or reputation. 

 

	 	1.1.	Expense
    Advance. The Company shall provide to the Service Provider an advance of $20,000 each month during the Term; provided, that,
    the advance shall cease to be due and payable when sales of the Products first reach 25,000 cases per month for more than four consecutive
    months. Such amount shall be offset against the Profit Share Payments, as provided for herein. The $20,000 shall be paid on the first
    date of every month beginning May 1, 2021. Notwithstanding the foregoing, for purposes of this section, cases of the Products sold
    to the channels listed on Schedule A shall not be included in calculating the number of cases sold.

 

    	 

    	 

    

 

	2.	Option
    Grants. 

 

	 	2.1.	Option
    Grant. On the date of this Agreement, the Company shall grant to the Service Provider an option for 1,673,994 shares of Common
    Stock (the “Option”). The Option shall be issued pursuant to a separate option agreement, substantially in the
    form attached to this Agreement as Exhibit 1. The Option shall be exercisable at the closing bid price of the Common Stock
    on the date of this Agreement, have an exercise term of ten (10) years (subject to acceleration upon a Sale of the Company) and vest
    as provided for herein. The foregoing terms also shall be reflected in the option agreement.
	 	 	 
	 	2.2.	First
    Tranche Vesting. 836,997 shares of Common Stock issuable pursuant to the Option (the “First Tranche Grant”)
    shall be exercisable from and after the achievement of the following milestones:

 

	 	 	2.2.1.	Net
    Revenue solely from distributors and Retailers, excluding (i) the channels listed on Schedule A and (ii) sales originated
    by Company personnel from distributors and Retailers, shall equal or exceed $12.5 million for any consecutive twelve (12) month period
    following the Effective Date; and
	 	 	 	 
	 	 	2.2.2.	Net
    Revenue solely from distributors and Retailers, excluding (i) the channels listed on Schedule A and (ii) sales originated
    by Company personnel from distributors and Retailers, shall be $12.5 million for the twelve (12) months subsequent to the period
    in Section 2.2.1.

 

	 	2.3.	Second
    Tranche Vesting. 836,997 additional shares of Common Stock issuable pursuant to the Option (the “Second Tranche Grant”
    and, together with the First Tranche Grant, the “Option Grants”) shall be exercisable from and after the achievement
    of the following milestones:

 

	 	 	2.3.1.	Net
    Revenue from all sources shall equal or exceed $25.0 million for any consecutive twelve (12) month period following the Effective
    Date; and
	 	 	 	 
	 	 	2.3.2.	Net
    Revenue from all sources shall be $25.0 million for the twelve (12) months subsequent to the period in Section 2.3.1.

 

Notwithstanding
the foregoing, if a Sale of the Company is consummated after the achievement of the event set forth in Section 2.3.1 and prior
to the second anniversary of the Effective Date, vesting of the Second Tranche Grant shall accelerate effective and conditioned upon
the consummation of the Sale of the Company. “Sale of the Company” shall mean (i) a merger, tender offer, consolidation
or other similar transaction resulting in the sale of the Company to an unaffiliated third party in which the holders of the Company’s
outstanding common stock immediately prior to such transaction do not hold a majority of the common stock of the combined entity immediately
following such transaction, or (ii) the sale of all or substantially all of the Company’s assets to an unaffiliated third party.
Sales of stock by Ryan Drexler in one or more transactions in the open market or in which all stockholders do not have the right to participate
shall not constitute a Sale of the Company.

 

    	-2-

    	 

    

 

	 	2.4.	Additional
    Vesting Conditions. Notwithstanding anything to the contrary herein, vesting of the Option Grants shall be subject to the following:

 

	 	 	2.4.1.	If,
    after the first anniversary of the Effective Date and prior to the achievement of the milestones set forth in Sections 2.2
    and 2.3, the Company enters into a binding agreement for a Sale of the Company that provides for total net consideration payable
    on the closing date of the transaction of at least $100.0 million, the Option shall not be exercisable and, in lieu of the ability
    to exercise any portion of the Option, the Company shall make a one-time payment to the Service Provider equal to 1% of the net consideration
    actually received in connection with the Sale of the Company (the “Sale Bonus”), such amount to be payable as
    promptly as reasonably practicable following and conditioned upon the Sale of the Company. Notwithstanding anything to the contrary
    in this Agreement, if the Company enters into a letter of intent for the Sale of the Company prior to the first anniversary of the
    Effective Date, then the Service Provider shall not be entitled to the Sale Bonus.
	 	 	 	 
	 	 	2.4.2.	The
    Option shall not be exercisable if, prior to the achievement of the milestones set forth in Sections 2.2 and 2.3, (i)
    this Agreement is terminated pursuant to Section 4 or (ii) the Company enters into a binding agreement for the Sale of the
    Company.

 

	 	2.5.	Definitions.
    As used in this Agreement:

 

	 	 	2.5.1.	“Retailers”
    shall mean any retail establishment that sells the products with the sole exception of the accounts listed in Schedule A.
	 	 	 	 
	 	 	2.5.2.	“Common
    Stock” shall mean common stock of the Company.
	 	 	 	 
	 	 	2.5.3.	“Net
    Revenue” shall mean all amounts received by the Company from sales of the Products, less discounts and allowances, promotional
    fees and freight paid to customers or third parties as an inducement to carry or distribute the Products.

 

	3.	Profit
    Share. 

 

	 	3.1.	Profit
    Share Payments. In consideration of the provision of the Performance Activities, the Company shall make quarterly payments to
    the Service Provider in amounts equal to 17.5% of the gross profit attributable to the Products (each such quarterly payment a “Profit
    Share Payment”), calculated as Net Revenue from distributors and Retailers, excluding (i) the channels listed on Schedule
    A and (ii) sales originated by Company personnel from distributors and Retailers, less costs of goods sold, which such
    deduction shall include costs allocated to copackers, raw material, component providers and freight (“Gross Profit”).
    For the avoidance of doubt, point of sale/display fees and retail program costs shall be borne by the Company and shall not be included
    in the calculation of Gross Profit; provided, however such fees shall be included in the calculation of Gross Profit
    if they exceed $1.00 per case of the Products. Notwithstanding anything to the contrary herein, any Profit Share Payments otherwise
    due and payable in respect of that portion of the sales of the Products that exceed 25,000 cases in a given month shall be reduced
    by any un-reimbursed advances made pursuant to Section 1.1. 

 

    	-3-

    	 

    

 

	 	3.2.	Period.
    For the purpose of quarterly Profit Share Payments, Gross Profit shall be calculated for the three month periods ended March 31,
    June 30, September 30 and December 31 and Profit Share Payments shall be made by the Company no later than fifty (50) days after
    the end of each quarter. 
	 	 	 
	 	3.3.	Termination.
    If this Agreement is terminated pursuant to Section 4 on or prior to the end of a calendar quarter, then no Profit Share Payments
    shall be due the Service Provider for the quarter in which the Agreement is terminated. 
	 	 	 
	 	3.4.	Sale
    of the Company. Upon consummation of a Sale of the Company, Profit Share Payments pursuant to this Section 3 shall cease
    accruing immediately, and all accrued but unpaid amounts shall be paid out by the Company to the Service Provider as promptly as
    reasonably practicable.

 

	4.	Term
    and Termination.

 

	 	4.1.	Term.
    This Agreement shall continue in effect (i) unless terminated by the mutual agreement of the parties or pursuant to Section 4.2
    or (ii) until the consummation of a Sale of the Company. The term of this Agreement is referred to herein as the “Term.”
	 	 	 
	 	4.2.	Termination
    for Cause. The Company may terminate this Agreement at any time if the Service Provider or Jason May (who may in the future be
    an employee of a separate service provider) (i) commits an act or engages in conduct which might reasonably be considered (a) to
    be immoral, deceptive, scandalous or obscene or (b) to injure, tarnish, damage or otherwise negatively affect the reputation and
    goodwill associated with the Company or the Products or (ii) represents a competitive sports nutrition product with the exception
    of products produced by Weird Beverages or Daytrip Beverages.
	 	 	 
	 	4.3.	Survival.
    Section 7 (Confidentiality), Section 8.2 (Limitations), Section 9 (Intellectual Property) and Section 10
    (Miscellaneous Provisions) shall survive expiration or termination of this Agreement for any reason and, except as expressly
    provided, expiration or termination will not affect any obligations arising prior to the expiration or termination date. For the
    avoidance of doubt, no shares will be issuable under the Option to the extent the right to such shares has not vested prior to the
    expiration or termination of the Term.

 

    	-4-

    	 

    

 

	5.	Representations
    and Warranties.

 

	 	5.1.	By
    the Company. The Company represents and warrants to the Service Provider that, as of the Effective Date: (i) it is a corporation
    duly organized, validly existing and in good standing under the laws of Nevada; (ii) it has authority to enter into and perform this
    Agreement without restriction and that this Agreement is a valid and binding obligation on it; (iii) the execution, delivery and
    performance of this Agreement by the Company has been duly authorized by all necessary corporate actions; and (iv) the execution,
    delivery and performance of this Agreement by the Company, and its compliance with the provisions hereof, do not and will not constitute
    a breach of, or default under (or an event which, with notice or lapse of time or both, would become a default under) or conflict
    with, or give rise to any right of termination, cancellation or acceleration of, any agreement, arrangement or instrument, whether
    written or oral, by which the Company is bound.
	 	 	 
	 	5.2.	By
    the Service Provider. The Service Provider represents and warrants to the Company that it shall perform its obligations under
    this Agreement (i) in accordance with the terms of this Agreement, (ii) in a timely, professional, commercially diligent basis, in
    accordance with generally accepted industry and professional standards, procedures and practices, and (iii) the execution, delivery
    and performance of this Agreement by the Service Provider, and its compliance with the provisions hereof, do not and will not constitute
    a breach of, or default under (or an event which, with notice or lapse of time or both, would become a default under) or conflict
    with, or give rise to any right of termination, cancellation or acceleration of, any agreement, arrangement or instrument, whether
    written or oral, by which the Service Provider is bound.

 

	6.	Trademarks
    and Other Usage of Intellectual Property. The Service Provider may not use the Company’s name, trademarks, service marks,
    logos, other similar marks or other designations of source or origin or any other Company Intellectual Property Rights (as defined
    in Section 9.1) without the Company’s prior written approval, except to perform its obligations under this Agreement.
    

 

	7.	Confidentiality

 

 

	 	7.1.	Confidential
    Information. All confidential or proprietary information and data of the Company, including without limitation manufacturing,
    products, pricing, customer, marketing, financial and other commercial information or data, Intellectual Property Rights and information
    related to any of the foregoing that is or has been provided by or on behalf of the Company in connection with this Agreement or
    any related negotiations or discussions, whether communicated in writing or orally or by any other method, and the terms of this
    Agreement (collectively, “Confidential Information”) will, during the Term and for a period of three (3) years
    thereafter, be maintained in confidence by the Service Provider and will not be disclosed by the Service Provider to a third party
    or used for any purpose except to perform its obligations under this Agreement without the prior written consent of the Company.

 

    	-5-

    	 

    

 

	 	7.2.	Return
    of Materials. Upon expiration or termination of this Agreement for any reason, the Service Provider will promptly: (i) return
    to the Company all documents and other material containing Confidential Information (other than this Agreement itself), including
    copies; or (ii) certify to the Company that it has destroyed all such documentation and other materials. 

 

	8.	Remedies.

 

	 	8.1.	Generally.
    Except as otherwise expressly set forth in this Agreement, the rights and remedies under this Agreement are cumulative and in addition
    to any other available rights or remedies under any agreement, at law or in equity.
	 	 	 
	 	8.2.	Limitations.
    UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY OR INCIDENTAL DAMAGES
    (INCLUDING LOST OR ANTICIPATED INCOME, LOST REVENUES OR LOST PROFITS), ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT, WHETHER
    SUCH CLAIM IS BASED ON WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE, EVEN IF AN AUTHORIZED REPRESENTATIVE
    OF THE PARTY IS ADVISED OF THE POSSIBILITY OR LIKELIHOOD OF SUCH INJURY, DAMAGE OR EVENT. 

 

	9.	Intellectual
                                            Property.

 

	 	9.1.	As
    used in this Agreement, “Intellectual Property Rights” mean all patents, rights to inventions, registered and
    unregistered trade and service marks, copyrights, rights in the nature of copyright, registered designs and unregistered design rights,
    rights in know-how, trade secrets and all other intellectual property rights and analogous rights as may exist anywhere in the world
    for the full term of those rights together with all reversions, revisions, extensions and renewals, all registrations and pending
    registrations, the benefit of any pending applications for such registrations and the right to apply for registrations or for the
    protection of such rights and all rights of action, powers or benefits belonging or accrued in relation to such rights (including
    the right to sue for and recover damages for past infringement).
	 	 	 
	 	9.2.	All
    Intellectual Property Rights related to the Products in existence as of the Effective Date will remain the exclusive property of
    the Company. 
	 	 	 
	 	9.3.	The
    Company shall own all Intellectual Property Rights related to the Products that arise during the Term through the provision of the
    Performance Activities pursuant to this Agreement; provided that the Service Provider will own, and the Company will have
    no claim of ownership to, the Intellectual Property Rights developed solely by the Service Provider during the Term that are related
    solely to the Service Provider’s processes in connection with the Performance Activities.

 

    	-6-

    	 

    

 

	 	9.4.	Except
    as expressly provided in this Agreement, no rights are granted to the Service Provider and all rights not expressly granted by the
    Company to the Service Provider are reserved.

 

	10.	Miscellaneous
    Provisions

 

	 	10.1.	Notices.
    Any notice, request or other document to be given hereunder to a party is effective when received and must be given in writing and
    delivered in person or sent by overnight courier or registered or certified mail, return receipt requested, as follows (or to such
    updated address provided by a party):

 

	 	If
    to the Service Provider:	Joseph
    Cannata
	 	 	3980
    Clay Street
	 	 	San
    Francisco, CA 94118
	 	 	 
	 	If
    to the Company:	MusclePharm
    Corporation
	 	 	4500
    Park Granada, Suite 202
	 	 	Calabasas,
    California 91302
	 	 	Attn:
    Ryan Drexler, Chief Executive Officer

 

	 	10.2.	Other
    Rights. No waiver of any breach of any one or more of the conditions or covenants of this Agreement by a party will be deemed
    to imply or constitute a waiver of a breach of the same condition or covenant in the future, or a waiver of a breach of any other
    condition or covenant of this Agreement.
	 	 	 
	 	10.3.	Severability.
    If any provision or the scope of any provision of this Agreement is found to be unenforceable or too broad by judicial decree, the
    parties agree that the provisions will be curtailed only to the extent necessary to conform to law to permit enforcement of this
    Agreement to its full extent.
	 	 	 
	 	10.4.	Entire
    Agreement; No Reliance. Each of the parties agrees and acknowledges that this Agreement, including Schedule A hereto,
    (i) constitutes the entire agreement and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions,
    whether oral or written, among the parties with respect to the subject matter of this Agreement, and (ii) is not intended to confer
    any rights or remedies, or impose any obligations, on any person other than the parties. Each of the parties expressly agrees and
    acknowledges that, other than those statements expressly set forth in this Agreement, it is not relying on any statement, whether
    oral or written, of any person or entity with respect to its entry into this Agreement or to the consummation of the transactions
    contemplated by this Agreement, and each of the parties further waives any claim against the other party that the other party has
    failed to disclose any fact, occurrence or other matter that relates in any way to its entry into this Agreement.

 

    	-7-

    	 

    

 

	 	10.5.	Amendments
    and Modifications. This Agreement may be modified only by a written agreement signed by both parties.
	 	 	 
	 	10.6.	Assignment.
    This Agreement may not be assigned by either party without the prior written consent of the other, and any attempted assignment shall
    be without effect. This Agreement will be binding on and will benefit any and all successors, trustees, permitted assigns and other
    successors in interest of the parties. 
	 	 	 
	 	10.7.	Relationship
    of Parties. The parties hereto are acting and performing as independent contractors, and nothing in this Agreement creates the
    relationship of partnership, joint venture, sales agency or principal and agent. Neither party is the agent of the other, and neither
    party may hold itself out as such to any other person. 
	 	 	 
	 	10.8.	Applicable
    Law. This Agreement will be construed and enforced in accordance with the laws of the State of Nevada (excluding the choice of
    law provisions thereof).
	 	 	 
	 	10.9.	Publicity.
    Neither party has the right to issue a press release, statement or publication regarding the terms and conditions of or the existence
    of this Agreement without the prior written consent of the other party; provided that the Company shall be entitled to make
    such disclosures as it deems necessary or appropriate under the federal securities laws of the United States or the listing rules
    of any securities exchange on which the Company is listed or seeking listing.
	 	 	 
	 	10.10.	Counterparts.
    This Agreement may be executed by electronic transmission in portable document format (.pdf) and in any number of counterparts with
    the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall
    constitute one and the same instrument.
	 	 	 
	 	10.11.	Letter
    of Intent. In accordance with Section 10.4 of this Agreement, the parties’ Letter of Intent dated January 20, 2021,
    is superseded by this Agreement.
	 	 	 
	 	10.12.	Interpretation.
    In construing this Agreement, (i) use of the singular includes the plural and vice versa; (ii) “include” or “including”
    shall mean without limitation by reason of enumeration, (iii) the words “herein”, “hereof”,
    “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular provision,
    (iv) except where the context otherwise requires, the word “or” is used in the inclusive sense; and (v) the words
    “shall” and “will” will be construed as equivalents and neither word shall be deemed to be
    more permissive than the other.

 

[Signature
page follows]

 

    	-8-

    	 

    

 

IN
WITNESS WHEREOF, the parties execute this Agreement as of the Effective Date.

 

	 	MUSCLEPHARM
    CORPORATION
	 	 
	 	By:	/s/
    Ryan Drexler
	 	Name:
    	Ryan
    Drexler
	 	Title:
    	CEO
	 	 	 
	 	JOSEPH
    S. CANNATA
	 	 
	 	/s/
    Joseph S. Cannata

 

    	 

    	 

    

 

Schedule
A

 

Excluded
Channels

 

	1.	Muscle
    & Strength
	2.	Coupang
	3.	Nutrition
    Systems
	4.	Reva
    Sports
	5.	DNA
	6.	Europa
	7.	Amazon
	8.	Bodybuilding.com
	9.	Military

 

    	 

    	 

    

 

Exhibit
1

 

Option
Agreement

 

(attached)

 

    	 

    	 

    

 

MUSCLEPHARM
CORPORATION

 

This
STOCK OPTION AGREEMENT (this “Agreement”) dated as of May 12, 2021, is entered into by and between MusclePharm
Corp., a Nevada corporation (the “Company”), and Joseph Cannata, a California resident (the “Grantee”).

 

	1.	DEFINITIONS.

 

This
Agreement incorporates by reference the Transaction Agreement, dated May 12, 2021 by and between the Company and the Grantee, a copy
of which is attached in Appendix A (the “Transaction Agreement”). Capitalized terms that are not defined in
this Agreement shall have the same meaning as defined in the Transaction Agreement.

 

	2.	GRANT
    OF STOCK OPTIONS.

 

(a)
Stock Option Grant. Subject to the terms and conditions provided in this Agreement, the Company hereby grants to the Grantee,
on the Effective Date, an option (the “Stock Option”) to purchase up to 1,673,994Shares of the Company’s common
stock, par value $0.001 (the “Common Stock”). As used in this Agreement, a “Share” shall mean a share
of Common Stock. The Stock Options are free standing stock options and therefore not granted under an equity plan, and are non-statutory
options (that is, an option that is not intended to qualify as an incentive stock option as defined in Section 422 of the Internal Revenue
Code of 1986, as amended). The Stock Option is granted to the Grantee in respect of the Grantee’s Service. As used in this Agreement,
“Service” shall mean the services that Grantee provides to the Company or any subsidiary in a capacity as a consultant,
advisor or independent contractor.

 

(b)
Exercise Price. The exercise price per Share for the Stock Options is $1.12 (the “Exercise Price”), which shall
be the closing bid price of a Share on the Effective Date.

 

	3.	VESTING;
    EXERCISE; CESSATION OF SERVICE. 

 

(a)
Vesting. The term “vest” as used herein with respect to the Stock Option or any portion thereof means to become exercisable
and the term “vested” with respect to the Stock Option (or any portion thereof) means that the Stock Option (or portion thereof)
is then exercisable. Unless earlier terminated, forfeited, relinquished, or expired, the Stock Option will vest as follows, subject to
the term of the Transaction Agreement (the “Term”) being in effect from the Effective Date through such vesting date;
provided, however, this Agreement and the Stock Options granted hereunder will terminate no later than on the 10th anniversary of the
Effective Date and will not vest thereafter. The vesting of the Grantee’s rights and interest in the Stock Options shall be determined
in accordance with this Section 3.

 

(i)
First Tranche Vesting. 836,997 Shares issuable pursuant to the Stock Option (the “First Tranche Grant”) shall
be exercisable from and after the achievement of the following milestones:

 

(A)
Net Revenue solely from distributors and Retailers, excluding (1) the channels listed on Schedule A and (2) sales originated by
Company personnel from distributors and Retailers, shall equal or exceed $12.5 million for any consecutive twelve (12) month period following
the Effective Date; and

 

    	 

    	 

    

 

(B)
Net Revenue solely from distributors and Retailers, excluding (1) the channels listed on Schedule A and (2) sales originated by
Company personnel from distributors and Retailers, shall be $12.5 million for the twelve (12) months subsequent to the period in Section
3(a)(i)(A).

 

(ii)
Second Tranche Vesting. 836,997 additional Shares issuable pursuant to the Stock Option (the “Second Tranche Grant”)
shall be exercisable from and after the achievement of the following milestones:

 

(A)
Net Revenue from all sources shall equal or exceed $25.0 million for any consecutive twelve (12) month period following the Effective
Date; and

 

(B)
Net Revenue from all sources shall be $25.0 million for the twelve (12) months subsequent to the period in Section 3(a)(ii)(A).

 

(C)
Notwithstanding the foregoing, if a Sale of the Company is consummated after the achievement of the event set forth in Section 3(a)(ii)(A)
and prior to the second anniversary of the Effective Date, vesting of the Second Tranche Grant shall accelerate effective and conditioned
upon the consummation of the Sale of the Company.

 

(iii)
Additional Vesting Conditions. Notwithstanding anything to the contrary herein, vesting of the Stock Options (both the First Tranche
Grant and the Second Tranche Grant) shall be subject to the following: if, after the first anniversary of the Effective Date and prior
to the achievement of the milestones set forth in Sections 3(a)(i) and 3(a)(ii), the Company enters into a binding agreement for a Sale
of the Company that provides for total net consideration payable on the closing date of the transaction of at least $100.0 million, the
Stock Option shall not be exercisable and, in lieu of the ability to exercise any portion of the Stock Option, the Company shall make
a one-time payment to the Grantee as and subject to the applicable terms set forth in the Transaction Agreement.

 

(iv)
Exercise of the Stock Option.

 

(A)
No portion of the Stock Option may be exercised until such portion vests. Each election to exercise any vested portion of the Stock Option
will be pursuant to the terms of this Agreement and must be in written or electronic form acceptable to the Company, signed (including
by electronic signature) by the Grantee or, if at the relevant time the Stock Option has passed to a permitted transferee, the permitted
transferee. Each such written or electronic exercise election must be received by the Company at its principal office and be accompanied
by payment in full.

 

(B)
The Stock Option shall not be exercisable and shall terminate upon the earliest of any of the following events occurring, prior to the
achievement of the milestones set forth in Sections 3(a)(i) and 3(a)(ii): (A) this Agreement is terminated pursuant to Section 3(a)(iv)(C),
(B) the Term ends, or (C) except as provided in Section 3(a)(ii)(C), the Company enters into a binding agreement for the Sale of the
Company.

 

    	2

    	 

    

 

(C)
Notwithstanding anything to the contrary in this Agreement, in no event shall the Stock Option be exercisable beyond the Term. If this
Stock Option is not exercised by the Term, the Stock Option or any remaining portion thereof will thereupon immediately terminate.

 

(b)
Cessation of Service. Automatically and immediately upon the Term of the Transaction Agreement ceasing to be in effect (the “Termination
of Services”), the Stock Option, to the extent not already vested, will terminate and be forfeited for no consideration, and
the vested portion of the Stock Option that is then outstanding will be treated as follows:

 

(i)
Subject to clause (ii) below, the Stock Option, to the extent vested immediately prior to the Termination of Services, will remain exercisable
until the expiration of the Term.

 

(ii)
The Stock Option (whether or not vested) will immediately terminate and be forfeited immediately prior to the Termination of Services
if such termination is for Cause. As used in this Agreement, “Cause” shall mean any event or occurrence that is a
termination for cause under the Transaction Agreement.

 

	4.	METHOD
    OF PAYMENT. 

 

Payment
of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the Grantee: (a) cash; (b)
check; (c) with Shares owned by the Grantee, or the withholding of Shares that otherwise would be delivered to the Grantee as a
result of the exercise of the Stock Options; or (d) such other consideration or in such other manner as may be determined by the
Board in its absolute discretion.

 

	5.	TRANSFERABILITY.

 

The
Stock Options granted hereby are not transferable and shall be exercisable only by the Grantee. In addition, the Stock Options shall
not be assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or otherwise), and the Stock Options shall
not be subject to execution, attachment or similar process. Upon any attempt to transfer, assign, negotiate, pledge or hypothecate the
Stock Options, or in the event of any levy upon the Stock Options by reason of any execution, attachment or similar process contrary
to the provisions hereof, the Option shall immediately become null and void. The terms of these Stock Options shall be binding upon the
executors, administrators, successors and assigns of the Grantee.

 

	6.	NO
    RIGHTS OF STOCKHOLDER; ISSUANCE OF SHARES UPON EXERCISE. 

 

Neither
the Grantee nor any other person shall be, or shall have any of the rights and privileges of, a stockholder of the Company with respect
to any shares purchasable or issuable upon the exercise of the Stock Options, in whole or in part, prior to the date on which the Shares
are issued. Upon exercise of the Stock Options and payment of the Exercise Price, the Company shall issue to the Grantee the number of
Shares so paid for, in the form of fully paid and nonassessable Common Stock.

 

    	3

    	 

    

 

	7.	WITHHOLDING.
    

 

The
Grantee is responsible for satisfying and paying all taxes arising from or due in connection with the Option, its exercise or a disposition
of Shares acquired upon exercise of the Option. The Company will have no liability or obligation related to the foregoing.

 

	8.	EFFECT
    ON SERVICE. 

 

Neither
the grant of the Stock Option, nor the issuance of Shares upon exercise of the Stock Option, will give the Grantee any right to be retained
in the service of the Company or any of its subsidiaries, affect the right of the Company or any of its subsidiaries to discharge the
Grantee at any time, or affect any right of the Grantee to terminate the Grantee’s Service at any time.

 

	9.	GOVERNING
    LAWS. 

 

This
Agreement shall be construed and enforced in accordance with the laws of the State of Nevada (excluding the choice of law provisions
thereof).

 

	10.	SUCCESSORS.
    

 

This
Agreement shall inure to the benefit of, and be binding upon, the Company and the Grantee and its legal representatives, successors and
permitted assigns.

 

	11.	SEVERABILITY.
    

 

In
the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason be held to be invalid,
illegal or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of this Agreement, and
this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained in
this Agreement.

 

	12.	ENTIRE
    AGREEMENT. 

 

This
Agreement, and the Transaction Agreement, express the entire understanding and agreement of the parties hereto with respect to such terms,
restrictions and limitations.

 

	13.	HEADINGS.
    

 

Section
headings used herein are for convenience of reference only and shall not be considered in construing this Agreement.

 

	14.	ADDITIONAL
    ACKNOWLEDGEMENTS. 

 

By
their signatures below (including electronic signatures), the Grantee and the Company agree that the Stock Options are granted under
and governed by the terms and conditions of this Agreement.

 

[Remainder
of Page Intentionally Left Blank]

 

    	4

    	 

    

 

The
Company, by its duly authorized officer, and the Grantee have executed this Agreement as of the date first above written.

 

	 	MusclePharm
    Corporation 
	 	 
	 	By:	/s/
    Ryan Drexler
	 	Name:	Ryan
    Drexler
	 	Title:	CEO

 

 

 

	Agreed
    and Accepted:	 
	 	 	 
	Joseph
    Cannata	 
	 	 	 
	By:	/s/
                                            Joseph Cannata
	 

 

    	 

    	 

    

 

APPENDIX
A

 

[TRANSACTION
AGREEMENT]

 

    	1

    	 

    

 

Schedule
A

 

Excluded
Channels

 

	1.	Muscle
    & Strength
	2.	Coupang
	3.	Nutrition
    Systems
	4.	Reva
    Sports
	5.	DNA
	6.	Europa
	7.	Amazon
	8.	Bodybuilding.com
	9.	Military

 

    	2

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