Document:

EXHIBIT 10.1

 

		 	TearLab
	 	9980 Huennekens St, Suite 100
	 	San Diego, CA 92121
	 	858 455-6006
	 	Fax 858-812-0540

 

May
15, 2015

 

Dear
Wes:

 

TearLab
Research, Inc., (the “Company”) is pleased to offer you the position of Chief Financial Officer reporting
to Elias Vamvakas, Chief Executive Officer. Your specific job duties and responsibilities may change from time to time as determined
by the Company’s management in its sole discretion. If you decide to join, you will receive annual salary of $250,000.00,
which will be paid semimonthly in accordance with the Company’s normal payroll procedures and will be subject to the usual,
required withholding. Your employment status will be exempt and as an exempt employee, you will not be eligible to receive overtime
compensation. Your performance will be subject to an annual review by your supervisor. As an employee, you will also be eligible
to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other
employees of the Company. Your employee benefits, if you choose to participate, are effective on your first day of hire. The details
of these employee benefits are explained in Exhibit A. You should note that the Company may modify job titles, salaries
and benefits from time to time as it deems necessary.

 

You
will be eligible to receive 50% of your salary as an annual bonus, which will be prorated from your date of hire (based on the
number of calendar days you are employed) for your first year of employment. This bonus has been established by the Company’s
Board of Directors in its sole discretion, and the Company reserves to the right to modify such bonus at any time. In no event
will any bonus payable to you be paid later than March 15 of the calendar year following the calendar year in which the bonus
is earned.

 

If
you choose to join our company there will be a one lump sum payment of $40,000.00 less all applicable withholdings, payable within
the first payroll you are eligible for. This is to replace the monetary toss for your current separation agreement with your employer.
In the event that you voluntarily terminate your employment for any reason whatsoever within the year of your start date, you
will be required to repay the full sum back.

 

    	 

    	 

    

 

In
addition, if you decide to join the Company, it will be recommended to the Company’s Board of Directors that the Company
grant you an option to purchase 200,000 shares of the Company’s Common Stock. The option will have a per share exercise
price equal to the fair market value of the Company’s Common Stock on the date of grant. One-third (1/3rd) of
the shares subject to the option shall vest annually on each anniversary of the date of grant, subject to your continuing employment
or service with the Company through each such date; provided, however, that upon a Change of Control (as defined in Exhibit
B), this award and any other options you may hold will immediately become 100% vested and exercisable. This option grant shall
be a stand-alone inducement award that will be granted outside of the Company’s 2002 Stock Incentive Plan, and except as
provided herein, the option shall be subject to a Stock Option Agreement to be entered by and between the Company and you, including
vesting requirements. The terms and conditions of such Stock Option Agreement shall be provided to you at a later date. No right
to any stock is earned or accrued until such time that vesting occurs, nor does the grant confer any right to continue vesting
or employment or service with the Company.

 

The
Company is excited about your joining and looks forward to a beneficial and productive relationship. Nevertheless, you should
be aware that your employment with the Company is for no specified period and constitutes atwill employment. As a result, you
are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship
with you at any time, with or without cause, and with or without notice. We request that, in the event of resignation, you give
the Company at least 30 days’ notice. Notwithstanding the foregoing, you may be entitled to certain severance benefits upon
a qualifying termination of your employment, as provided in Exhibit B.

 

The
Company reserves the right to conduct background investigations and/or reference checks on all of its potential employees. Your
job offer, therefore, is contingent upon a clearance of such a background investigation and/or reference check, if any.

 

For
purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and
eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your
date of hire, or our employment relationship with you may be terminated.

 

    	 

    	 

    

 

We
also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment
that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed. It is the Company’s
understanding that any such agreements will not prevent you from performing the duties of your position and you represent that
such is the case. Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other
employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved
or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations
to the Company. Similarly, you agree not to bring any third party confidential information to the Company, including that of your
former employer, and that in performing your duties for the Company you will not in any way utilize any such information.

 

As
a Company employee, you will be expected to abide by the Company’s rules and standards. As a condition of your employment,
you are also required to sign and comply with an AtWill Employment, Confidential Information, Invention Assignment and Arbitration
Agreement which requires, among other provisions, the assignment of patent rights to any invention made during your employment
at the Company, and nondisclosure of Company proprietary information. In the event of any dispute or claim relating to or arising
out of our employment relationship, you and the Company agree that (i) any and all disputes between you and the Company shall
be fully and finally resolved by binding arbitration, (ii) you are waiving any and all rights to a jury trial but all court remedies
will be available in arbitration, (iii) all disputes shall be resolved by a neutral arbitrator who shall issue a written opinion,
(iv) the arbitration shall provide for adequate discovery, and (v) the Company shall pay all the arbitration fees, except an amount
equal to the filing fees you would have paid had you filed a complaint in a court of law.

 

This
letter is our formal offer of employment and requires your written acceptance. If you accept our offer, your first day of employment
will be July 6, 2015. If our offer is acceptable to you, please countersign this letter below and return the signed
original or scanned copy to me by 5:00 pm on May 22, 2015. This letter, along with any agreements relating to proprietary
rights between you and the Company, set forth the terms of your employment with the Company and supersede any prior representations
or agreements including, but not limited to, any representations made during your recruitment, interviews or preemployment negotiations,
whether written or oral, This letter, including, but not limited to, its atwill employment provision, may not be modified or amended
except by a written agreement signed by the Chief Executive Officer of the Company and you. This offer of employment will terminate
if it is not accepted, signed and returned by May 29, 2015.

 

    	 

    	 

    

 

We
look forward to your favorable reply and to working with you at the Company.

 

	 	Sincerely,
	 	 
	 	/s/
    Elias Vamvakas
	 	Elias Vamvakas
	 	Chief Executive
    Officer

 

	Agreed
    to and accepted:	 
	 	 
	Signature:	/s/
    Wes Brazell	 
	Printed
    Name:	Wes
    Brazell 	 
	Date:	May
    15, 2015	 

 

    	 

    	 

    

 

Exhibit
A

 

Employee
benefits:

 

	 	●	Sick Leave
	 	 	 
	 	●	Reimbursement
    of monthly cell phone charges (via Concur)
	 	 	 
	 	●	Military Leave
    of Absence 
	 	 	 
	 	●	Pregnancy Disability
    Leave of Absence 
	 	 	 
	 	●	Unpaid Family
    School Partnership Leave
	 	 	 
	 	●	Lactation Break
    
	 	 	 
	 	●	Voting Leave 
	 	 	 
	 	●	Jury and Witness
    Duty Leave
	 	 	 
	 	●	Bereavement Leave
	 	 	 
	 	●	Vacation- On an
    accrual basis per pay period

 

	Years	 	Days
	Month
    0-12	 	15
    days
	Month
    12-24	 	16
    days
	Month
    24-36	 	17
    days
	Each
    Additional Year	 	Increase
    by 1 day
	Maximum
    Accrual of Vacation hours equivalent to 30 days 

 

	 	●	Holidays
	 	 	 
	 	●	Health Insurance
    (Co-Pay)
	 	 	 
	 	●	Vision Insurance
    (Co-Pay)
	 	 	 
	 	●	Dental Insurance
    (Co-Pay)

 

    	 

    	 

    

 

Exhibit
B

 

Termination
by Executive

 

You
may terminate your employment with the Company at any time by providing the Company with at least three (3) months of notice in
writing. During the resignation notice period, you will be required to perform the duties set forth in this letter. Notwithstanding,
upon receipt of your resignation (other than with respect to a resignation within twelve (12) months of the occurrence of a Change
in Control as defined below), the Company may, in its sole and absolute discretion, terminate your employment before the date
the resignation was to be effective, and the Company will, in full satisfaction of its obligations to you: (a) continue to pay
your base salary in accordance with the Company’s payroll practices until the date the resignation was to be effective up
to a maximum of three (3) months, subject to the terms and conditions of Exhibit A hereof; (b) reimburse the outstanding
expenses, properly incurred by you until the date your employment ceases; and (c) pay you a pro-rated bonus in a lump sum calculated
as at the date your employment ceases as soon as administratively practicable after the termination by the Company, but in no
event will any such pro-rated bonus be paid after the later of: (i) the fifteenth (15th) day of the third (3rd) month after the
end of the Company’s fiscal year in which such bonus is earned, or (ii) March 15 following the calendar year in which such
bonus is earned.

 

Termination
by Company for Cause, Death or Disability

 

The
Company may terminate your employment at any time with cause and without prior notice or any further obligations by the Company.
On the termination of your employment for cause or on your death or disability, the Company will, in full satisfaction of its
obligations to you: (a) pay your base salary and vacation pay accrued until the date your employment ceases; and (b) reimburse
the outstanding expenses properly incurred by you until the date your employment ceases. If your termination occurs due to your
death or disability, you will be entitled to a pro-rated bonus calculated as at the date your employment ceases, which shall be
paid in a lump sum as soon as administratively practicable after termination by you, but in no event will any such pro-rated bonus
be paid after the later of: (i) the fifteenth (15th) day of the third (3rd) month after the end of the Company’s fiscal
year in which such bonus is earned, or (ii) March 15 following the calendar year in which such bonus is earned.

 

Termination
by Company without Cause or Resignation on Change of Control

 

The
Company may terminate your employment at any lime without cause (other than for death or disability), on providing written notice.
You may resign due to a material adverse change in your terms and conditions of employment within six (6) months following the
occurrence of a Change in Control as defined below, on providing written notice within thirty (30) days of the events constituting
a material adverse change and a cure period of not less than thirty (30) days for the Company to cure any such material adverse
change; provided, however, that such resignation must occur within thirty (30) days following the end of such cure period. If
the Company terminates your employment without cause (other than for death or disability) or if the executive resigns, in each
case, in accordance with this Exhibit B, then subject to the terms and conditions of Exhibit C, the Company will,
in full satisfaction of its obligations to you:

 

    	 

    	 

    

 

(a)
Pay a lump sum amount equal to: (i) two (2) times your annual base salary in effect at the time of the termination, plus (ii)
two (2) times the average of the bonus paid to you in the two (2) years preceding the year of termination; and

 

(b)
Reimburse you for the cost of group health benefit plan premiums for up to eighteen (18) months from the date your employment
ceases. Such reimbursements shall be made concurrent with any obligation owed to you by the Company under the U.S. federal COBRA
law, to the extent applicable. Notwithstanding the foregoing, if the Company determines in its sole discretion that it cannot
provide the foregoing COBRA premium reimbursements without potentially violating, or being subject to an excise tax under, applicable
law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to
you a taxable monthly payment, payable on the last day of a given month (except as provided by the following sentence), in an
amount equal to the monthly COBRA premium that you would be required to pay to continue the group health coverage for you and/or
your eligible dependents in effect on the termination of employment date (which amount will be based on the premium for the first
month of COBRA coverage), which payments will be made regardless of whether you and/or your eligible dependents elect COBRA continuation
coverage and will commence on the month following your termination of employment and will end on the earlier of (x) the date upon
which you obtain other employment or (y) the date the Company has paid an amount equal to eighteen (18) payments. Any such taxable
monthly payments that otherwise would have been paid to you within the sixty (60) days following your termination date instead
will be paid on the sixty-first (61st) day following your termination of employment, with any remaining payments paid
as provided in the prior sentence (subject to any delay as may be required by Appendix C). For the avoidance of doubt, the taxable
payments in lieu of COBRA reimbursements may be used for any purpose, including, but not limited to continuation coverage under
COBRA, and will be subject to all applicable tax withholdings.

 

Change
of Control

 

“Change
of Control” means:

 

(a)
any transaction or series of transactions, whether by way of consolidation, amalgamation or merger of the Company, with or into
any other person, other than an affiliate of the Company as defined in the Ontario Business Corporations Act as amended (an “Affiliate”);

 

(b)
any transfer, conveyance, sale, lease, exchange or otherwise of all or substantially all of the assets of the Company, to any
other person, other than an Affiliate;

 

(c)
more than fifty percent (50%) of the directors of the Company in office (i) were not directors of the Company on the same day
in the immediately preceding calendar year and (ii) were not proposed by the directors of the Company existing prior to their
appointment or election;

 

(d)
the lawful acquisition, directly or indirectly and by any means whatsoever, by any person, or by a group of persons acting jointly
or in concert, of that number of voting shares of the Company, which is forty percent (40%) or more of the total voting shares
issued and outstanding immediately after such acquisition, unless another person or group of persons has previously lawfully acquired
and continues to hold a number of voting units which represents a greater percentage than the first-mentioned person or group
of persons; or

 

(e)
the directors of the Company by resolution deem that a Change in Control has occurred or is about to occur.

 

Consequences
of Termination

 

Upon
termination of your employment for any reason, the Company will pay your base salary and vacation pay accrued until the date your
employment ceases and reimburse your expenses properly incurred until the date your employment ceases. The termination of your
employment terminates any officer positions you may hold pursuant to this letter, and you agree to sign any documentation necessary
to due effect to this Exhibit B, or to give effect to any pro forma resolutions of the Company in respect of the period
prior to termination of your employment.

 

    	 

    	 

    

 

Exhibit
C

 

To
the extent any severance benefits will be made under this letter, they will be delayed as necessary pursuant to (A) the Release
requirement described below and (B) the provisions of Section 409A of the U.S. Internal Revenue Code of l 986, as amended (the
“Code”), and the final regulations and any guidance promulgated thereunder and any applicable state law equivalents
(“Section 409A”), each as outlined below.

 

Release
Requirement

 

The
receipt of any severance pay and benefits under this letter is subject to your signing and not revoking a standard release of
claims with the Company (the “Release”) and provided that the Release becomes effective and irrevocable within sixty
(60) days following your termination of employment (such deadline, the “Release Deadline”). If the Release does not
become effective and irrevocable by the Release Deadline, you will forfeit any rights to severance benefits under this letter.

 

Severance
pay and benefits under this letter will commence or be paid, as applicable, on the sixtieth (60th) day following the date of your
termination of employment, or, if later, such time as required by the paragraphs below. Except as required by the paragraphs below,
any lump sum or installment payments that would have been made to you during the sixty (60) day period immediately following your
termination of employment but for the preceding sentence will paid on the first payroll period following the sixtieth (60th) day
following your termination of employment and the remaining payments will be made as provided in this letter.

 

Section
409A

 

Notwithstanding
anything to the contrary in this letter, no severance benefits to be paid or provided to you, if any, pursuant to this letter
or otherwise that, when considered together with any other severance payments or separation benefits, are considered deferred
compensation under Section 409A (together, the “Deferred Payments”) will be paid or otherwise provided until you have
a “separation from service” within the meaning of Section 409A. Similarly, no severance payable to you, if any, pursuant
to this letter that otherwise would be exempt from Section 409A pursuant to U.S. Treasury Regulation Section 1.409A-1(b)(9) will
be payable until you have a “separation from service” within the meaning of Section 409A.

 

Notwithstanding
anything to the contrary in this letter or otherwise, if you are a “specified employee” within the meaning of Section
409A at the time of your termination (other than due to death), then the Deferred Payments, if any, that are payable within the
first six (6) months following your separation from service, will become payable on the first payroll date that occurs on or after
the date six (6) months and one (1) day following the date of your separation from service. All subsequent Deferred Payments,
if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything
herein to the contrary, if you die following your separation from service, but prior to the six (6) month anniversary of your
separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as
administratively practicable after the date of your death and all other Deferred Payments will be payable in accordance with the
payment schedule applicable to each payment or benefit. Each payment, installment and benefit payable under this letter is intended
to constitute a separate payment for purposes of U.S. Treasury Regulation Section 1.409A-2(b)(2).

 

    	 

    	 

    

 

Any
amount paid under this letter that qualifies as a payment made as a result of an involuntary separation from service pursuant
to U.S. Treasury Regulation Section 1.409A-1(b)(9)(iii) that does not exceed the Section 409A Limit will not constitute a Deferred
Payment.

 

For
purposes of this letter, “Section 409A Limit” will mean two (2) times the lesser of: (i) your annualized compensation
based upon the annual rate of pay paid to you during your taxable year preceding the taxable year of your separation from service
as determined under U.S. Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued
with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17)
of the Code for the year in which your separation from service occurs.

 

All
reimbursements and in-kind benefits under this letter that provide for a “deferral of compensation” within the meaning
of Section 409A (i) shall be made no later than the last day of the calendar year that immediately follows the calendar year in
which Employee incurred the expense; (ii) not be subject to liquidation or exchange for another benefit or payment; (iii) provided
to Employee in any calendar year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in
any other calendar year; and (iv) except as specifically provided herein, any such reimbursements or in-kind benefits must be
for expenses incurred and benefits provided on or prior to termination (except that a plan providing medical or health benefits
may, to the extent permitted by Section 409A impose a generally applicable limit that may be reimbursed or paid). To the extent
applicable, reimbursements that provide for a “deferral of compensation” within the meaning of Section 409A are intended
to constitute compliant deferred compensation payable on a specified date or fixed schedule in accordance with the requirements
set forth under U.S. Treasury Regulation Section 1.409A-3(i)(1)(iv).

 

The
foregoing provisions are intended to be exempt from or comply with the requirements of Section 409A so that none of the severance
payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities
or ambiguous terms herein will be interpreted to be exempt or so comply. You and the Company agree to work together in good faith
to consider amendments to this letter agreement and to take such reasonable actions which are necessary, appropriate or desirable
to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A.EXHIBIT 10.1

 

 

DIRECT RESPONSE PRODUCTION AGREEMENT

 

This AGREEMENT (the “Agreement”)
is made this 30th day of June, 2015, (the “Effective Date”), by and between Pacific Custom Video Productions, Inc.,
a California Corporation, dba LAUNCH DRTV, located at 12211 W. Washington Blvd., 2nd Floor, Los Angeles, CA 90066 (hereinafter
referred to as “Producer”) and TK SUPPLEMENTS, INC., a Delaware Corporation, located at 621 North Shady Retreat Road,
Doylestown, PA 18901 (hereinafter referred to as “Client”).

 

W I T N E S S E T H:

 

WHEREAS, Client has the right to cause
to be produced a series of Direct Response Commercials, as defined herein, designed to advertise the Product, as defined herein;

 

WHEREAS, Producer is in the business of
producing television Direct Response Commercials, including scripting, pre-production, production and post-production thereof,
and can produce a commercial specifically created to advertise and sell the Product; and

 

WHEREAS, Client desires to utilize the
services of Producer to produce a Commercial designed to advertise and sell the Product;

 

NOW, THEREFORE, in consideration of the
mutual covenants and conditions contained herein, the parties agree as follows:

 

		1.	Definitions.

 

The following terms
as used herein shall have the following meanings:

 

(a)               
“Direct Response Commercial” shall mean four (4) Commercials whose respective length shall be 1:20, :60, :30
and :15 seconds, respectively, in length, broadcast quality, videotape, fully-edited, generic (i.e., without product ordering information)
television commercials designed to sell the Product by means of direct response by the customer, and any parts thereof. Additional
offers and creative test versions can be edited in at anytime at an additional cost of $225 per hour, not including additional
shooting or 3rd party costs such as voice over talent, sound mix, etc., subject to Client approving in advance incurring
such additional costs.

 

(b)              
“Product” shall mean that certain item currently entitled “Legendz XL” and all components thereof
(collectively and/or individually) and such other goods and services (collectively and/or individually) as are advertised and offered
for sale in the Direct Response Commercials produced hereunder.

 

(c)               
“Term” of this Agreement shall mean the period commencing on the Effective Date and continuing for as long as
the Direct Response Commercial is aired on TV by the Client or its agents anywhere in the world, in whole or in part, in any medium
now known or hereafter devised, and for one year thereafter.

 

    	1

    	 

    

  

(d)              
“Territory” shall mean the United States.

 

 

		2.	The Commercial.

 

(a)               
Subject to the provisions hereof, and commencing upon Producer’s receipt of the first payment in good funds due to
Producer hereunder, Producer shall write the outline for, produce, and direct the four (4) Direct Response Commercials.

 

(b)              
The production schedule shall be determined by the mutual agreement of the parties.

 

(c)               
Producer shall not be liable to Client for expenses incurred or losses suffered by Client by reason of delays, except material
delays resulting solely from causes within the sole control of Producer. Client shall reimburse Producer for expenses incurred
or losses suffered by Producer as a result of delays caused by Client.

 

(d)              
The Budget for the Commercial is set forth in Exhibit “A,” annexed hereto and made a part hereof, and shall
be paid by Client to Producer as set forth in Paragraph 3 below, with the timeliness of the payments being of the essence.

 

(e)               
At no cost to Producer, Client promptly shall provide all samples of Product to be used in the Commercial, including mockups,
product photos, and TV-ready comps of the Product, if necessary, to be used for shooting purposes.

 

(f)               
With regard to any materials created or generated by Producer during the production process with regard to which the Producer
seeks input or, if required, approval from Client (including but not limited to Client’s input and written approval on the
show outline, script drafts, casting, set design, or any interim or final edits) Client shall promptly provide Producer with Client’s
input or, if required, with Client’s approval, in writing. .

 

(g)               
With respect to persons appearing in the Commercial on-screen:

 

		i.	If so provided for in the Budget, Producer shall furnish and shall pay from the Budget any non-celebrity,
non-expert, and non-union talent appearing in each Commercial, and shall furnish and shall reimburse the expenses of any persons
giving testimonials in each Commercial (but only if such persons are located in Los Angeles, California), with Client obligated
to furnish, to pay, and to reimburse the expenses of all other persons appearing in each Commercial.

 

		ii.	Client shall furnish and shall pay all compensation due
to any celebrities, hosts, experts, and union talent appearing in each Commercial. Client also shall obtain from all the aforesaid
celebrities, experts, and union talent sufficient agreements, permissions and releases, including, but not limited to, sworn affidavits
attesting to the truth and accuracy of their statements in the Commercial and, to the extent necessary, to the substantiation
supporting their statements. Client shall provide copies of all such agreements, permissions, releases, and affidavits to Producer
promptly upon Producer’s request for same, and in any event prior to any airing or display of each Commercial. Client also
is responsible for the expense of burning-in or adding any telephone number or website address, subject to Client’s prior
written approval of such expenses.

 

    	2

    	 

    

  

j.                   
The Direct Response Commercials, all videotapes thereof, the Master thereof, the script thereof (collectively, the “Production”),
and all rights in connection therewith, shall be the exclusive property of Client, provided, however, that Producer may retain
copies of the Production for archival purposes and for the purposes set forth in subparagraph 2(i) below. Client shall have the
sole and exclusive right to copyright protection of the Production, with the exception of Composer’s rights that may be licensed
to Client with regard to music used in each Commercial, and Producer shall have no duty with respect to securing copyright protection
therefore. However, all of the foregoing is conditioned upon and subject to Client having fully performed and complied with its
obligations under Section 3 (a) of this Agreement.

 

k.                 
Notwithstanding any other provision contained herein, Producer shall have the right to use the Commercial in Producer’s
promotional reel, business plans and promotional materials, including without limitation, brochures, advertisements, hand-outs,
DVDs, CD-Roms and Internet websites, and to copy and to provide third parties with copies of the Commercial, and to enter the Commercial
in industry competitions, festivals, and shows, all for Producer’s publicity and promotional purposes. Solely in connection
therewith, Client hereby grants Producer a royalty free, fully paid up, worldwide license to utilize Client’s intellectual
property, including but not limited to, copyrights, copyrightable material, trademarks, trademarkable material, trade names, trade
dress, patents and patentable material relative to the Product. The foregoing limited license does not permit Producer to broadcast
the Commercial or grant sub-licenses to the Commercial.

 

l.                   
Client acknowledges and agrees that it is well informed about the financial risks associated with the television advertising
industry and that Producer makes no representation or warranty, express or implied, as to the degree of success to be achieved
by reason of the televising of the Direct Response Commercials, nor shall Client seek to hold Producer liable with respect thereto.
Producer has not made, and does not hereby make, any guarantee, representation, or warranty with respect to the level of sales
and revenue to be derived as a result of the televising of the Direct Response Commercials, nor does Producer make any guarantee,
representation, or warranty concerning the meeting of deadlines or the avoidance of delays. Client recognizes and acknowledges
that the level of revenues from sales of the Products of any kind contemplated by this Agreement is speculative. Client agrees
that it shall not make any claim, nor shall it seek to impose any liability upon Producer or any of its shareholders, directors,
members, officers, agents, employees, attorneys, or affiliates, based upon any claim that more sales, revenues, media exposure
or customers could have been obtained, or that better business could have been done than was actually made or done by Client or
its successors, licensees and assigns, or that better business terms, prices or opportunities could have been obtained, or based
on delay or failure to meet deadlines in the production by Producer.

 

		3.	Budget.

 

(a)               
Client shall pay to Producer a Production Budget for the Commercial (“Budget”) of no less than Three Hundred
Thousand Dollars (U.S.$300,000) to be utilized in compliance with Exhibit “A” hereto.

 

Payment of the
Budget shall be made by wire transfer or cashier’s check as follows, with timeliness of payment being of the essence:

 

15% ($45,000), upon execution
of this Agreement;

 

50% ($150,000) plus approved
contingency and overages, within 5 days prior to first shoot date;

 

    	3

    	 

    

  

20% ($60,000) plus approved contingencies
and overages, upon delivery of first off line rough cut to client

 

15% ($45,000) plus approved
contingency and overages, upon Client’s approval of viewing dub and prior to the release of any Masters to Client, such approval
not to be unreasonably withheld or delayed.

 

Producer has no
duty to deliver any edited or camera master to Client until Producer has received payment in full of all sums due to Producer pursuant
to this Paragraph 3(a) above (i.e., the full 100%). Upon payment of the amounts set forth in this Section 3(a), Producer shall
promptly deliver all such materials to Client.

 

(b)              
Any production work requested by Client that would involve any change to any previously approved or agreed-upon work, or
to Budget items, or to the schedule, including, but not limited to, any change in the Product, final script, travel, locations,
talent, experts, or testimonials, shall require appropriate adjustments in the Budget. In the event of such a change, there shall
be an additional payment due to Producer, which Client shall pay promptly and no later than ten days after receipt of any invoice
from Producer for same. Such changes requested by Client may be noted on an “Overage Sheet.” In no event shall Producer
be required to implement any changes requested by Client that will result in Overages to the Budget, nor shall Client be obligated
to pay for such Overages, without the prior written consent of Client to such Budget Overages.

 

(c)               
The Budget may include a “Contingency” element for unanticipated additional costs in production, in which case
Producer in its sole discretion may use the funds that correspond to same to cover any such costs. To the extent that all of the
Contingency funds are not utilized, Producer shall remit such amount to Client. In addition thereto and in addition to all other
items in the Budget, Client also shall pay and reimburse Producer for all other agreed upon bona fide expenditures incurred by
Producer in connection with the Commercial or in the course of performing Producer’s services hereunder which are substantiated
by receipted vouchers or paid bills. Because it is not always practical to obtain expense receipts, a reasonable amount of un-receipted
but actually incurred expenditures by Producer, each of less than two hundred and fifty Dollars ($250), and not exceeding $1,000
in the aggregate, may be made by Producer, with all such expenditures required to be reimbursed by Client promptly and no later
than ten days after receipt of any invoice for same.

 

(d)              
Unless other provisions have been expressly made in the Budget, Client shall reimburse Producer’s personnel and crew
for all travel and lodging expenses outside of Los Angeles County, California; provided, however, that Producer will not incur
such expenses without Client’s prior written consent. Such travel-related expenses may include meetings requested by Client
and travel for testimonial shooting beyond that which is provided for in the Budget, and shall be reimbursed by Client promptly
and no later than ten days after receipt of any invoice for same.

 

(e)               
In the event that the Commercial is not completed and delivered due directly or indirectly to any request which has been
made by Client for a cessation, postponement, or suspension of production caused by anything other than a material and uncured
breach by Producer of this Agreement, then Client shall reimburse Producer for all costs and expenses incurred or committed to
by Producer in connection with the production of the Commercial up to the date of Producer’s receipt such a written request
by Client. Said reimbursement payment by Client shall be made promptly and no later than ten days after receipt of any invoice
for same and shall be in addition to all the other payments specified to be due to Producer above pursuant to this Paragraph 3.

 

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(f)               
In the event that the Budget includes payment for Producer’s services in helping to form and oversee a testimonial
group, Client expressly acknowledges and agrees that it shall be responsible for ensuring that the design and implementation of
the testimonial group, including the development of all advertising claims therefrom, shall comply with all applicable federal,
state and local laws, and that the protocol for such group is designed in a manner so as to be safe for all participants. In the
absence of negligence or willful misconduct on the part of Producer, Client shall be responsible for any claims relating to personal
injury or death suffered by any member of the testimonial group.

 

(g)               
Client shall be responsible for payment of all fees and expenses of any clinical or other scientific studies which Client
elects to obtain for purposes of substantiating claims about the Product to be made in the Commercial.

 

		4.	Performance Incentive.

 

(a) For purposes hereof,
“Royalty” shall mean:

 

(i) three percent (3%) of all direct response
revenue collected (Phone, Web/Digital, Radio, Print) actually received by Client, or any subsidiary, affiliate or other entity
related to Client from the Product sale in the Territory, and all such additional Client revenues from all items sold together
with the Product within the same offer (e.g., related products) or offered as additional products to purchasers of the Product
(e.g., upsells, supplements, nutritionals, club memberships, etc); and all Product Continuity sales, which for purposes of this
Agreement shall be defined as any and all sales from any re-order or auto-club purchase program for any product whatsoever offered
by Client to consumers at the time of their original purchase of the Product (hereinafter collectively referred to as “Royalty
Bearing Product”), less: shipping and handling charges, payments by customers of taxes, chargebacks, returns, refunds,
coupons, promotional discounts, rebates, and other consumer incentives, and replacements and credit card charges, all without deduction
or offset of any sort relative to Producer.

 

And

 

(ii) Producer royalty on “Retail/Wholesale’
revenues will be paid at the rate of one percent (1%) and will based on Client’s actual wholesale/transfer rate collected
with retail/wholesale accounts in the Territory less: shipping and handling charges, payments by customers of taxes chargebacks,
returns, refunds, coupons, promotional discounts, co-op allowance, trade discounts, trade deals and other consumer incentives,
and replacements and credit card charges..

 

(iii) All Royalties shall be
owed and payable so long as Direct Response Commercial(s) produced by Producer for Client are airing on TV or Radio and for a trail
window of 6 months after the final airing. Should the Commercials resume airing on TV or Radio after suspension, the Royalties
will commence again in accordance with this Agreement and Terms. During the Term, Client will pay to Producer the Royalty within
thirty (30) days after the end of each fiscal quarter for all Royalty-bearing transactions that were consummated during the preceding
fiscal quarter. The Royalty payment shall be accompanied by a written statement of the total revenue received by Client relative
to sales, and other revenue-generating activities with respect to each item of Royalty Bearing Product and which shows the direct
response revenue collected (as previously defined in 4(a)(i) and 4(a)(ii) above) by Client for the preceding fiscal quarter, a
categorization of the sources of such revenue and the Royalty due thereon; and shall also show the total amount of deductions from
revenues as permitted by this Section 4.

 

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(iv) If Client terminates LaunchDRTV
and hires a new firm who creates a new spot that is introduced on TV during the tail, then we pro-rate the royalties solely as
related to the ‘tail’ portion of this Agreement paid to LaunchDRTV in proportion to the average media that was spent
for the 3 months prior to termination on the LaunchDRTV spot vs. the amount spent on new TV media. All other royalties will remain
as covered in this Agreement.

 

(b) Any Royalty not
timely paid shall bear interest at the rate of One and One-Half Percent (1.5%) per month (or such lesser amount as may be the maximum
permitted by law) for each month or portion thereof during which it shall remain unpaid.

 

(c) Producer shall
have the right to procure an audit, at its sole expense, of the total revenue received by Client relative to the Royalty Bearing
Product, the sources of such revenue and the calculation of the Royalty due thereon by an independent auditor or chartered accountant,
who shall deliver an audited certificate to Producer within forty-five (45) days after access to such information has been granted
to such auditor or accountant by Client. Client agrees to give such auditor or accountant full and unfettered access to inspect
all of Client’s books and records, at Client’s regular place of business, pertaining to the sale of the Products during
normal business hours to facilitate this audit on three business days prior written notice. Producer shall pay the entire costs
and fees for such audit; provided, however, that if there is any discrepancy greater than Fifty Thousand Dollars
($50,000) or two percent (2%), whichever is greater, between the Client’s statements with the audited certificate, Client
shall bear the entire costs and fees of the audit, not to exceed the amount of the discrepancy. If there is any undisputed discrepancy
greater than Fifty Thousand Dollars ($50,000) or two percent (2%), whichever is larger, between the Licensee’s statements
with the audited certificate, the appropriate adjustment shall be made as between the parties by Client immediately paying to Producer
any outstanding Royalty due together with interest thereon at the rate of One and One-Half Percent (1.5%) per month covering the
period as from the date that the Royalty should have been paid to Producer until the date of actual payment. Producer and the auditor
performing such inspection shall agree in writing, prior to engaging in any such inspection, that the information disclosed in
the course of such inspection shall constitute confidential information of Client and shall not be disclosed to any person or used
for any purpose other than to enforce the provisions of Agreement.

 

(d) If after the first
airing of the Commercial (and any subsequent revisions of the Commercial by Producer), Client determines that the Commercial is
not profitable, then Client may produce edited versions of the Commercial without Producer’s involvement. If any such edited
version of the Commercial contains a total of twenty-five percent (25%) or more of any footage, content, GFX, Animation, developed
by Producer, the Producer’s Royalty will continue to apply in accordance with this Agreement and Terms. If Client develops
and airs any versions using less then 25% of Producer developed content, then those specific versions will not be subject to the
Royalty provisions of this Agreement. Client maintains the right to shoot and develop new creative versions without Producer involvement
at any point in time, with no royalty tied to those specific creative versions created without Producer involvement.

 

(e)Client may elect
to hire Producer to perform “Campaign Services” in addition to/in conjunction with this Production Agreement. Those
Services, Fees and Terms shall be outlined in Attached Exhibit B Hereto. (See attached at end of Agreement)

 

		5.	Approvals.

 

(a)               
Client has the right and obligation to approve or reject in writing the shooting script or outline prior to the commencement
of principal videotaping or filming, as the case may be, of the Direct Response Commercials.

 

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(b)              
Client has the right and obligation to approve or reject in writing the rough cut of the Direct Response Commercials (that
is, prior to commencement of on-line editing). Once the off-line is approved, any further changes desired by Client in on-line
will be billed as an Overage.

 

(c)               
Client has the right and obligation to approve or reject in writing the final “view tape” of the Direct Response
Commercials. Once this “view” or “on-line” tape is approved, any further changes desired by Client will
be billed as an Overage.

 

(d)              
Client shall respond in writing to all requests made by Producer for any of the approvals reference herein above in this
Paragraph 5 and for any other approvals requested by Producer, including for example approvals of changes, within five (5) business
days of their submission by Produce to Client. In the event of any rejection or response by Client other than an unqualified approval,
Client’s written response shall state the reasons for same.

 

(e)               
Client’s approval of the shooting script or outline, Client’s approval of the rough cut of the Direct Response
Commercials, Client’s approval of the final “view tape” of the Direct Response Commercials, Client’s approval
of the Direct Response Commercials, and Client’s approval of any changes to any of same, pursuant to Paragraph 5 (a) to (d)
above or otherwise, shall constitute, to the best of Client’s knowledge and belief, a covenant, representation, and warranty
by Client to Producer of the truth and accuracy of all the statements and claims expressly or impliedly made within said materials,
of Client’s possession of legally sufficient substantiation for all such statements and claims, of the Product’s safety
and efficacy, of the non-infringement of any third party’s rights (such as patent, copyright, trademark, trade dress, trade
secret, publicity, or other intellectual property rights), of Client’s compliance with all rules, regulations and guidelines
of the Federal Trade Commission. Any such approval by Client also shall constitute a covenant, representation, and warranty by
Client that Client has obtained legal review and clearance opinions from competent legal counsel.

 

(f)               
All of Client’s approvals or rejections in this Agreement, including but not limited to this Section 5, shall be made
in Client’s sole discretion.

 

(g)               
If upon Commercial testing Producer and Client agree in writing to implement changes to the Commercial, Producer shall provide
Client a budget therefore. Subject to Client’s written approval of such budget, Client shall be billed for actual out of
pocket costs incurred by Producer inclusive of any third-party expenditures aside from additional Talent fees if any.

 

		6.	Warranties and Representations.

 

(a) Each party, for
itself, hereby warrants and represents to the other party that:

 

(i) it has been duly incorporated and
is validly existing as a corporation in good standing under the laws of its respective state of incorporation and is duly qualified
to do business as a foreign corporation in good standing in all jurisdictions in which the nature of its business or the character
or location of its properties or assets requires such qualifications;

 

(ii) this Agreement has been duly and validly
authorized, executed and delivered by such party and constitutes a valid, binding and enforceable agreement of such party;

 

(iii) such party is not (1) in violation
of its corporate charter of bylaws, or (2) in default in the performance or observance of any obligation, agreement, covenant or
condition contained in any instrument to which it is a party or by which it or any of its material properties is bound, or in violation
of any law, order, rule, regulation, writ, injunction or decree of any governmental authority or court;

 

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(iv) the execution, delivery and performance
of this Agreement by such party will not (1) conflict with or result in a breach of any of the terms, conditions or provisions
of or constitute a default under, or result in the imposition of any lien, charge or encumbrances upon any of the material properties
or assets of such party pursuant to any bond, debenture, note or other evidence of indebtedness or in any material contract, indenture,
mortgage, loan agreement, lease, joint venture, partnership or other agreement or instrument to which it is a party or by which
it or any of its material properties is bound, or (2) result in the violation by such party of its corporate charter or bylaws,
or any violation of any law, order, rule, regulation, writ, injunction or decree of any governmental instrumentality or court.
No consent, approval, authorization or order of any governmental agency or court or of any other person is required for the execution,
delivery or performance of this Agreement by such party, except for those which have been heretofore obtained;

 

(v) there is not now pending or, to
the best knowledge of such party, threatened any action, suit or proceeding to which such party is a party before or by any court
or governmental agency or body, which might result in any material adverse change in the condition (financial or other), business
or prospects of such party or performance of this Agreement, or might materially and adversely affect the properties or assets
of such party or performance of this Agreement;

 

(vi) such party has the full and complete
authority to enter into this Agreement and to perform in all respects the obligations required to be performed by it pursuant to
this Agreement; and

 

(vii) such party is not bound by, nor will
it during the Term enter into any agreement that would prevent or materially interfere with the performance by such party of the
material terms and conditions of this Agreement.

 

(b) In addition to
the foregoing, Client hereby represents and warrants to, and covenants with, Producer that:

 

(i) Client has the full, unrestricted
and exclusive right to acquire, publish, distribute, license, sell and exploit the Product, and will continue to possess such rights
during the Term;

 

(ii) Client has not granted any rights
that would conflict with or derogate from the rights granted to Producer hereunder;

 

(iii) the Product is safe and efficacious
and Client possesses competent and reliable evidence to such effect;

 

(iv) all statements and claims which will
be made, expressly or impliedly, in the Commercial are and will continue to be truthful and accurate, are and will continue to
be supported by legally sufficient substantiation (including, but not limited to, clinical studies, trials, tests, or case histories,
as and to the extent legally necessary), and are and will continue to be fully compliant with all state and federal laws governing
advertising including but not limited to the rules, regulations and guidelines of the Federal Trade Commission;

 

(v) all sales programs for the Product
and all statements and claims which will be made, expressly or impliedly, in the Commercial, are and will continue to be in compliance
with all state and federal laws governing advertising, marketing, promotion, or sales practices, including but not limited to the
rules, regulations and guidelines of the Federal Trade Commission; and that, prior to any airing of the Commercial, Client has
obtained legal review and a clearance opinion from competent legal counsel;

 

    	8

    	 

    

  

(vi) the Product is compliant with all
applicable federal, state, and local laws, rules and regulations of any kind or nature, and will continue to be so compliant during
the Term;

 

(vii) Client owns or possesses or controls
all requisite rights to use all patents, patent rights, inventions, trade secrets, know-how, processes, technology, trademarks,
trade names, service marks, service names, copyrights, trade dress, and other intellectual property rights of any kind or nature
related to the Product or to any of the content of the Commercial, which are necessary for the performance of this Agreement or
for the exploitation of the Product or the Commercial; and Client has not received any determination of infringement of or of conflict
with, has not received any notice or claim asserting any infringement of or conflict with, is not infringing or in conflict with,
and will not infringe or be in conflict with, any asserted right of any third party including, but not limited to, any asserted
patent, trade secret, trademark, trade name, service mark, service name, copyright, trade dress, privacy, publicity, or other right
relating to the Product or Commercial;

 

(viii) Client will do everything necessary
to ensure that it is and will continue to be in compliance with the agreements governing its right to manufacture and distribute
the Product; and Client is not aware of any default thereunder, or of any fact or circumstance which with notice or the passage
of time may constitute a default, nor any factual basis for same.

 

(c) The representations
and warranties which have been made herein above shall survive the expiration of the Term of this Agreement as well as any termination
of this Agreement for any reason.

 

		7.	Indemnification.

 

(a) Client shall indemnify,
pay for the defense of, and hold harmless Producer and all of its members, principals, officers, directors, employees, independent
contractors, agents, affiliates, successors, assigns, and licensees from, all suits, claims, demands, damages, debts, liabilities,
accounts reckoning, obligations, costs, expenses, liens, actions, or causes of action (including, but not limited to, actual damages,
punitive damages, fines, and reasonable attorneys’ fees and costs, whether or not litigation is commenced) arising out of,
involving, or relating in any way to any of the following: (i) the Product, including but not limited to, personal injury suffered
by consumer purchasers, testimonialists, on-camera talent or other individuals utilizing the Product; (ii) any inaccurate information
to the best of Producer’s knowledge, data, or material provided by Client to Producer; (iii) any state, local, or federal
law governing advertising, marketing, promotion, or sales, including, but not limited to, any rule, regulation, or guideline of
the Federal Trade Commission, as applied to the Product or to any claim or statement made in or to any other aspect of the Commercial;
(iv) any infringement of or any conflict with any right of any third party, including, but not limited to, any patent, trade secret,
trademark, trade name, service mark, service name, copyright, trade dress, privacy, publicity, or other right, as applied to the
Product or to any claim or statement made in or to any other aspect of the Commercial; (v) any material and uncured breach by Client
of any material term, condition, or provision of this Agreement; and (vi) any material breach by Client of any warranty, representation,
or covenant made herein or, with regard to any such warranty, representation, or covenant, any failure (for any reason) of same
to be true and accurate, or to remain true and accurate, or to be complied with.

 

(b) Producer shall
indemnify and hold harmless Client and all of its members, principals, officers, directors, employees, independent contractors,
agents, affiliates, successors, assigns, and licensees from, all suits, claims, demands and other liabilities and expenses (including,
but not limited to, actual damages, punitive damages, fines and reasonable attorneys’ fees and costs, whether or not litigation
is commenced) arising out of or relating to the following: (i) any material and uncured breach by Producer of any term, condition,
or provision of this Agreement; and (ii) any material breach by Producer of any warranty, representation, or covenant made herein
or, with regard to any such warranty, representation, or covenant, any failure (for any reason) of same to be true and accurate,
or to remain true and accurate, or to be complied with.

 

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(c) In connection with
any claim giving rise to a right of defense and/or indemnity in favor of one party hereto, by another party hereto, pursuant to
this Paragraph 7, which claim results from or arises out of any claim or legal proceeding brought by a third party, the indemnifying
party, using its own counsel at its own expense, shall be entitled to control said defense and settlement of claims against of
the indemnified party (including controlling the settlement or other adjudication of any such claim) . The indemnified party shall
be entitled to participate, but not control, said defense. Each party shall notify the other of any such third party demand, suit,
or claim, promptly after discovery of same.

 

(d) The provisions
of this Paragraph 7 shall survive shall survive the expiration of the Term of this Agreement as well as any termination of this
Agreement for any reason.

 

		8.	Termination.

 

In addition to all
other rights of each party, at law or in equity, resulting from non-compliance by the other party with this Agreement, each party
may terminate the Term of this Agreement upon seven (7) days written notice to the other party in the event of any of the following:

 

(a) Such party defaults
in any material respect in the performance or observance of any term, covenant or agreement contained in this Agreement, and the
same continues for a period of fourteen (14) days following the receipt of such party of notice from the other party of such non-compliance;

 

(b) Any representation
or warranty made by a party herein or in connection with the execution and delivery of this Agreement shall prove to have been
incorrect, when made, in any material respect; or

 

(c) (i) The institution
of any proceedings by or against a party seeking relief, reorganization of such party or arrangement with such party’s creditors
under any laws relating to insolvency or bankruptcy, (ii) any general assignment for the benefit of, such party’s entering
into a composition with, such party’s creditors, (iii) the appointment, or the consenting to the appointment of, a receiver,
liquidator, trustee or other custodian for all or substantially all of such party’s company or assets, (iv) the liquidation,
dissolution or winding up of such party’s business, or (v) the entry of an order by a court of competent jurisdiction (A)
finding such party to be bankrupt or insolvent, (B) ordering or approving such party’s liquidation, reorganization or any
alteration or modification of the rights of such party’s creditors, or (C) assuming custody of, or appointing a receiver
or other custodian for, all or a substantial part of such party’s property.

 

		9.	Confidentiality.

 

(a) The parties recognize
that during the course of performing their duties hereunder they may become aware of proprietary, confidential information concerning
the other party, its products, methods, processes, formulations, product development, billing practices, financial condition, business
plans etc., or information the other party designates as confidential (collectively “Confidential Information”). Each
party agrees that it will maintain in confidence and not disclose to any third party at any time any such Confidential Information
if it previously has been identified specifically and in writing as being Confidential Information under this Agreement, and shall
not use any such specifically identified Confidential Information to the detriment of the other party or for any purpose not contemplated
by this Agreement. Producer acknowledges that Client is a publicly traded company and will not utilize any information it learns
with respect to Client, the Commercial, the Products, or the success of the project contemplated hereby. This is in no way includes
any knowledge, information, or best practices Producer was aware of prior to entering into Agreement with Client, even if shared
with Client, nor any information already in the public domain.

 

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(b) The obligation
of confidentiality set forth above shall survive the expiration or other termination of this Agreement, provided, however, that
a party (the “Disclosing Party”) may during the Term hereof or thereafter disclose Confidential Information to the
extent required by applicable law or the order of a court of competent jurisdiction. In the event the Disclosing Party is required
by applicable law or the order of a court of competent jurisdiction to disclose any Confidential Information, such party agrees
to provide the other party with prompt notice of any such requirement so that the other party may seek an appropriate protective
order. Failing the entry of a protective order or the receipt of a waiver hereunder, the Disclosing Party will disclose only that
portion of the Confidential Information which has been required.

 

(c) The term “Confidential
Information” and the provisions of this Agreement relating thereto shall not apply to any information which:

 

(i)becomes generally available to the
public, other than as a result of a disclosure by Producer in violation of this Agreement;

 

(ii)was available, or becomes available,
on a non-confidential basis from a source other than either of the parties hereto;

 

(iii)is developed independently and is
not based upon or derived from Confidential Information.

 

		10.	Force Majeure.

 

Either party may suspend
the performance of its obligations hereunder in the event of any of the following contingencies, if by reason of any such contingency,
it is materially hampered in the performance of its obligations under this Agreement or such performance becomes impossible or
Commercially impracticable: acts of God, fire, catastrophe, labor disagreement, acts of government, its agencies or officers, any
order, regulation, ruling or action of any labor union or association affecting the party or the industry in which it is engaged,
or any other cause not mainly within its control.

 

		11.	Insurance.

 

Client will obtain
and maintain at its sole expense during the Term hereof and for a period of one (1) year thereafter a comprehensive general liability
and product liability insurance policy with minimum limits of One Million Dollars ($1,000,000.00) per incident and Two Million
Dollars ($2,000,000.00) in the aggregate, specifically naming Producer and its respective members, officers, directors, employees,
and independent contractors as additional insureds. Such insurance policy shall provide that it cannot be canceled or modified
without the insured first giving Producer thirty (30) days prior written notice. Client will furnish Producer with a true and legible
copy of the insurance certificate and evidence of Producer being named as an additional insured, upon demand. Producer has, and,
subject to Client’s compliance with this Agreement, agrees to maintain (at least until such time as Producer delivers a master
to Client) a production insurance policy, for the negative.

 

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		12.	Assignment.

 

Neither party may assign
any right or delegate any duty hereunder without the express prior written consent of the other, which consent shall not be unreasonably
withheld. The prohibition shall not prevent any party from contracting with third parties for services to be provided in furtherance
of the performance required of each under this Agreement. No assignment shall be valid unless the assignee assumes in writing all
the obligations of the assignor hereunder.

 

		13.	Disputes.

 

Except for claims or controversies seeking
injunctive relief to enforce the provisions of Section 9 hereof by either party, any claim or controversy arising out of, relating
to or concerning this Agreement, the breach of this Agreement or the Commercial, including any statutory claims (including, without
limitation, the arbitrability of any claim or controversy), shall be settled by final and binding arbitration before a single neutral
arbitrator in Los Angeles County, California, in accordance with the JAMS/Endispute Rules and Procedures, which shall specifically
include the right to discovery and the rules of evidence set forth in the California Evidence Code, and in conjunction with the
applicable law governing this Agreement. In the event that Licensor and Licensee cannot mutually agree upon the arbitrator, the
then presiding judge of the Superior Court of the State of California located in the County of Los Angeles shall appoint the arbitrator.
Except as set forth above, this arbitration includes all claims whether arising in tort or contract and whether arising under statute
or common law. The arbitrator shall issue a written finding of fact and conclusions of law, which may be enforced in any court
of competent jurisdiction. The arbitrator shall have the authority to grant all monetary or equitable relief, including, without
limitation, costs to the prevailing party where authorized by law. The fees of the arbitrator and all other costs that are unique
to arbitration shall be split equally between the parties.

 

		14.	Notices.

 

Any notice required
by or provided pursuant to this Agreement shall be given in writing by Certified Mail, Return Receipt Requested, or any professional
delivery service that requires a signed, written receipt confirming delivery of the envelope or package containing the notice.
Said notice shall be provided to the following addresses:

 

IF TO CLIENT:

Ted Karkus/

TK Supplements, Inc.

621 N. Shady Retreat Road

Doylestown, PA 18901

 

 

IF TO PRODUCER:

Drew Plotkin/Sam Najah

Launch DRTV

12211 W. Washington Blvd. 2nd Floor

Los Angeles, CA  90066

Attn: Drew Plotkin

 

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		15.	Work for Hire.

 

The Commercial and
all of the results and proceeds of the services furnished hereunder shall be a “work made for hire” for Client under
the US Copyright Act to the extent approved, paid for and produced hereunder, and Client shall be deemed the author thereof and
shall from creation own all right, title and interest therein. If the Commercial is deemed not to be a work made for hire, then
Producer shall irrevocably assign all of its right, title and interest therein to Client. All raw footage, tapes, related documentation
and other physical elements relating to the Commercial shall be owned by and delivered to Client concurrently with delivery of
the Masters. Producer shall execute and deliver to Client such additional documents and instruments as Client may request in connection
with documenting or evidencing Client’s ownership of the intellectual property rights applicable to the Commercial. The above
provisions of this paragraph are subject to and conditioned upon Client’s performance of Section 3 (a) of the Agreement.

 

		16.	General Provisions.

 

(a)               
This Agreement constitutes the entire understanding and agreement of the parties with respect to its subject matter and
supersedes any and all prior understandings and agreements.

 

(b)              
This Agreement shall be governed by and interpreted in accordance with the laws of the State of Delaware applicable to contracts
made in and wholly to be performed therein.

 

(c)               
This Agreement may not be amended or modified except in a written instrument signed by the party against whom enforcement
is sought.

 

(d)              
Subject to any restrictions on transferability contained in this Agreement, this Agreement shall be binding upon and inure
to the benefit of the parties and their respective successors-in-interest and permitted assigns. Nothing contained in this subparagraph
16(d) shall create any rights enforceable by any person not a party to this Agreement, except for the rights of successors-in-interest
and permitted assigns of each party hereto (unless such rights are expressly granted in this Agreement to other persons specifically
identified and named herein).

 

(e)               
Paragraph headings are used for convenience and are not to be interpreted as part of this Agreement.

 

(f)               
The parties to this Agreement are acting as independent contractors and nothing herein shall be construed as creating a
partnership or other joint business venture. Neither party has the authority to act on behalf of or bind the other except as expressly
set forth herein.

 

(g)              
In the event that any provision of this Agreement is held to be unenforceable or contrary to law, then the Agreement shall
be interpreted, to the extent possible, without such provision.

 

(h)              
Each party shall execute and deliver all instruments and documents and take all actions as may be reasonably required to
effectuate this Agreement.

 

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(i)                
In the event of any dispute between the parties to enforce or interpret the provisions of this Agreement, the prevailing
party in such dispute shall be entitled to recover from the other party all reasonable costs, expenses and attorney’s fees,
and costs actually incurred relating to or arising from such dispute, including, but not limited to, in connection with any arbitration.

 

(j)                
No waiver by a party of any provision of this Agreement shall operate as, or be deemed to be, a continuing waiver of such
provision or a waiver of any similar or dissimilar provision, unless such waiver is contained in a written instrument signed by
the party against whom enforcement is sought.

 

(k)              
Time and strict punctual performance are of the essence with respect to provisions herein concerning payments and approvals
to be made by Client.

 

(l)                
Each party shall be responsible for the reporting and payment of its own federal, state, and local taxes and licenses.

 

(m)            
Each of the parties hereto represents and agrees with the other that (i) it has been represented by independent counsel
of its own choosing, (ii) it has had the full right and opportunity to consult with its respective attorneys and other advisers
and has availed itself of this right and opportunity, (iii) its authorized officers have carefully read and fully understand this
Agreement in its entirety and have had it fully explained to them by such party’s counsel, (iv) each is fully aware of the
contents hereof and its meaning, intent and legal effect, and (v) its authorized officer is competent to execute this Agreement
and has executed this Agreement free from coercion, duress and undue influence. Each party and its counsel cooperated in the drafting
and preparation of this Agreement, and the documents referred to herein. Accordingly, any rule of law, including, but not limited
to, California Civil Code Section 1654, or any legal decision that would require interpretation of any ambiguities in this Agreement
against the party that drafted it, is of no application and is hereby expressly waived. The provisions of this Agreement shall
be interpreted in a reasonable manner to effectuate the intentions of the parties hereto.

 

(n)              
EXCEPT WITH RESPECT TO EACH PARTY’S OBLIGATION TO INDEMNIFY THE OTHER AS SET FORTH IN SECTION 7, ABOVE, IN NO EVENT
SHALL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER PARTY OR ANY THIRD PARTY, FOR ANY CAUSE OF ACTION RELATING TO THIS AGREEMENT
FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL OR SPECULATIVE DAMAGES, INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS OR
USE, BUSINESS INTERRUPTION, OR LOSS OF GOODWILL, IRRESPECTIVE OF WHETHER EITHER PARTY HAS ADVANCE NOTICE OF THE POSSIBILITY OF
SUCH DAMAGES

 

(o)              
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument. This Agreement may be executed by facsimile, and signatures on a facsimile
copy hereof shall be deemed authorized original signatures.

 

    	14

    	 

    

  

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the Effective Date.

 

	
        Pacific Custom Video Productions, Inc., a California Corporation

        dba “LAUNCH DRTV”
	 	
        TK Supplements, Inc., a

        Delaware Corporation

        

	“Producer”	 	“Client”
	By:	 	 	By:	 
	Title:	 	 	Title:	 

 

 

    	15

    	 

    

 

Exhibit “A”

Budget

 

 

 

    	16

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