Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into by and between CHRISTOPHER FRANKLIN
(“Executive”), and AQUA AMERICA, INC., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania (the “Company”) as of this 2nd day of June, 2015. 

WHEREAS, the Board of Directors of Company (“Board of Directors”) wishes to have the Company retain Executive to serve
as President and Chief Executive Officer (“CEO”) of the Company on the terms set forth herein. 
 NOW, THEREFORE, in
consideration of the mutual covenants and obligations contained herein, and intending to be legally bound, the parties, subject to the terms and conditions set forth herein, agree as follows: 

1. Employment and Term. Executive hereby agrees to serve as President and CEO from July 1, 2015 (the “Commencement
Date”) hereof through July 1, 2018 (the “Initial Term”), and the Company hereby agrees to retain Executive as President and CEO through the Initial Term. By executing this Agreement the Company confirms that the Board
of Directors has approved this Agreement. The parties may mutually agree in writing to renew the term of employment under this Agreement for successive one (1) year periods (or for such other period(s) as agreed by the parties) at the end of
the Initial Term or any renewal term. This Agreement shall terminate at the end of the Initial Term or, in the event of renewal, at the end of the extended term, unless terminated earlier as provided in this Agreement. The Initial Term and, if the
period of employment is extended, such successive periods of employment, subject to earlier termination of employment as provided in this Agreement, are collectively referred to herein as the “Term”. 

2. Duties. During the Term, Executive will have the title of President and CEO. Executive shall report exclusively to and
receive instructions from the Board of Directors and shall have such duties and responsibilities customary for the positions of president and chief executive officer of public companies similarly situated. While serving as President and CEO,
Executive shall have full authority and discretion relating to the general and day-to-day management of the affairs of the Company, including, but not limited to, finances and other financial matters, compensation matters (other than with respect to
the compensation of Executive, himself, and the other executive officers of the Company, and other than long-term compensation of employees, which shall be determined by the Executive Compensation Committee of the Board of Directors (the
“Executive Compensation Committee”)), personnel matters (other than such matters that relate to Executive himself), operating and capital budgeting, operations, intellectual property, investor relations, retention of professionals
and strategic planning and implementation. Executive will be the most senior executive officer of the Company and all other executives and businesses of the Company will report to Executive or his designee. The foregoing language shall not be
construed so as to limit the duties and responsibilities of the Board of Directors as described in the Company’s Articles of Incorporation and Bylaws. 

3. Other Business Activities. Executive shall serve the Company faithfully and shall devote his reasonable best efforts and
substantially all of his business time, attention, skill and efforts to the performance of the duties required by or appropriate for his position as President and CEO. In furtherance of the foregoing, and not by way of limitation, for so long as
Executive remains President and CEO, Executive shall not directly or indirectly engage in any other business or charitable activities or pursuits, except for those arising from positions held as of the date hereof as set forth on Appendix A
or such other activities as would not materially interfere with Executive’s ability to carry out his duties under this Agreement and are identified by Executive to the Board of Directors as described in the

 
following sentence. Notwithstanding the foregoing, Executive shall be permitted to engage in activities in connection with (i) service as a volunteer, officer or director or in a similar
capacity of any charitable or civic organization; (ii) managing personal investments; (iii) serving as a director, executor, trustee or in another similar fiduciary capacity for a non-commercial entity; or (iv) serving as a director
of a business organization; provided, however, that Executive has disclosed his intention to engage in such activities to the Board of Directors and the Board of Directors concludes that such activities do not materially interfere with
Executive’s performance of his responsibilities and obligations pursuant to this Agreement. 
 4. Base Salary. The
Company shall pay Executive a salary at the annual rate of six hundred thirty-five thousand dollars ($635,000) (the “Base Salary”) effective as of the effective date of this Agreement, payable pursuant to the Company’s normal
practice, but no less frequently than monthly. The Base Salary shall be inclusive of all applicable income, Social Security and other taxes and charges which are required by law or requested to be withheld by Executive and which shall be withheld
and paid in accordance with Company’s normal payroll practice for its similarly-situated executives as in effect from time to time. The Executive Compensation Committee, in consultation with Executive, shall periodically review Executive’s
Base Salary during the Term at least annually for increases based on Executive’s performance and other relevant factors. 
 5.
Annual Incentive Compensation. Executive shall participate in incentive compensation programs which will enable Executive to earn bonus compensation in accordance with performance criteria developed and evaluated by the Executive
Compensation Committee in consultation with Executive. Executive’s target annual bonus shall not be less than eighty percent (80%) of Executive’s Base Salary. For 2015, Executive’s target bonus payable under this Agreement shall
be pro rated based upon the number of months remaining in the year after the Commencement Date and Executive’s target bonus payable under his previous arrangement based upon his previous target bonus percentage shall be pro rated based upon the
number of months in the year before the Commencement Date. 
 6. Annual Equity Incentives. For 2016 and thereafter during the
term of this Agreement, Executive shall be granted annual, equity-based long term incentive compensation at the discretion of the Executive Compensation Committee under the Company’s 2009 Omnibus Equity Compensation Plan (the “Omnibus
Plan”), consistent with existing compensation practices; provided, however, that the target annual equity grant shall not be less than one hundred sixty-five percent (165%) of Executive’s Base Salary. For 2015,
Executive shall be granted an equity award with a value equal to fifty percent (50%) of the difference between one hundred sixty-five percent (165%) of Executive’s Base Salary and his current long-term incentive award under the
Omnibus Plan, measured as of the grant date (the “Stock Award”) with performance-based vesting as determined by the Executive Compensation Committee. 

7. Other Benefits. Nothing in this Agreement shall affect Executive’s participation in standard Company benefit plans and
the level of those benefits shall be at least as favorable as those provided to senior management generally. 
 8. 2015
Performance-Based Stock Award; Termination of Employment. 
 (a) If the Company terminates Executive’s employment without Cause,
Executive terminates employment for Good Reason, or in the event of Executive’s termination due to non-renewal of the Term by the Company, any unvested shares of the Stock Award shall become fully vested if the applicable performance goals are
met for any of the three successive calendar years immediately following the date of grant of such Stock Award. If Executive dies while employed by the Company, or Executive’s employment is terminated on account of Disability, any unvested
shares of the Stock Award shall become vested in full upon Executive’s death or termination of employment on account of Disability. If Executive’s employment is terminated for Cause or if Executive voluntarily terminates employment without
Good Reason, any unvested shares of the Stock Award will be forfeited. 

  
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 (b) If the Company terminates Executive’s employment and this Agreement for Cause, or if
Executive terminates Executive’s employment without Good Reason, or for death or Disability, Executive shall receive (or his estate in the event of his death) any accrued but unpaid salary and accrued vacation under this Agreement. 

(d) If the Company terminates Executive’s employment and this Agreement without Cause, if Executive terminates Executive’s
employment for Good Reason, or in the event of Executive’s termination due to non-renewal of the Term by the Company, Executive shall receive any accrued but unpaid salary and accrued vacation under this Agreement, as well as a lump sum payment
equal to (i) twenty-four (24) months of Base Salary; and (ii) two (2) times the target annual bonus, such lump sum payment to be paid on the thirtieth day following the date of termination. 

(e) For the avoidance of doubt, the payment of severance benefits under this Agreement shall be conditioned upon Executive executing a general
release of all claims in a form provided by the Company no later than 21 days following the date of termination, and not revoking such release during the seven day period following execution. 

9. Defined Terms. For purposes of this Agreement: 

(a) The term “Cause” shall mean (i) Executive’s conviction of, or pleading guilty or nolo contendere to, a
felony or crime involving moral turpitude; (ii) in carrying out his duties hereunder, Executive engages in conduct that constitutes willful gross misconduct, or willful gross neglect and that, in either case, results in material economic or
reputational harm to the Company; or (iii) Executive refuses to perform, or repeatedly fails to undertake good faith efforts to perform, the duties or responsibilities reasonably assigned to him (consistent with this Agreement) by the Board of
Directors, in either case, after written notice thereof. Any determination of Cause shall be subject to a reasonable notice and cure period. 

(b) The term “Disability” shall mean Executive’s mental or physical incapacity that entitles Executive to long-term
disability benefits under the Company’s long-term disability plan applicable to Executive. 
 (c) The term “Good
Reason” shall mean a termination of employment initiated by Executive upon one or more of the following occurrences after the Commencement Date: 

(i) a diminution in Executive’s authority, title, duties, responsibilities or reporting lines, 

(ii) relocation of Executive’s principal place of employment, to a location that is more than fifty (50) miles from
the location on the Commencement Date; or 
 (iii) a material decrease in Base Salary or the target annual bonus. 

Executive must provide written notice of termination for Good Reason to the Company within sixty (60) days after the event constituting
Good Reason. The Company shall have a period of thirty (30) days in which it may correct the act or failure to act that constitutes the grounds for Good Reason as set forth in Executive’s notice of termination. If the Company does not
correct the act or failure to act, Executive must terminate his or her employment for Good Reason within thirty (30) days after the end of the cure period, in order for the termination to be considered a Good Reason termination. 

  
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 10. Restrictive Covenants. 

(a) Executive agrees that on and after the Commencement Date, for a period of twelve (12) months after termination of his employment under
this Agreement, Executive will not, directly or indirectly, individually, or in association or in combination with any other person or entity, whether as a shareholder of a corporation, or a manager or member of a limited liability company, or as an
employee, agent, independent contractor, consultant, advisor, joint venturer, partner or otherwise: 
 (i) employ, engage or
solicit for employment any person who is, or was, at any time during the twelve (12) months after termination of his employment under this Agreement and the immediately preceding twelve (12) month period, an employee of the Company or
otherwise seek to adversely influence or alter such person’s relationship with the Company (without written consent of the Board); or 

(ii) solicit or encourage any person or entity that is, or was, at any time during the twelve (12) months after
termination of his employment under this Agreement and the immediately preceding twelve (12) month period, a prospective affiliate of the Company or a customer, client or vendor or prospective customer, client or vendor of the Company, to
terminate or otherwise alter his, her or its relationship with Company. 
 (b) Executive agrees that on and after the Commencement Date, for
a period of twelve (12) months after termination of his employment under this Agreement, Executive agrees that he will not, unless acting pursuant with the prior written consent of the Board of Directors, directly or indirectly, own, manage,
operate, join, control, finance or participate in the ownership, management, operation, control or financing of, or be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise with or use or
permit his name to be used in connection with, any business or enterprise engaged in a geographic area within twenty-five (25) miles of any location from which the Company or any of its subsidiaries is operating on the date of such termination
(the “Geographic Area”), in any business that is competitive to a business from which the Company and any of its subsidiaries, taken as a whole, derived at least ten percent of its respective annual gross revenues for the twelve
(12) months preceding the date of termination. It is recognized by Executive that the business of the Company and its subsidiaries and Executive’s connection therewith is or will be involved in activity throughout the Geographic Area, and
that more limited geographical limitations on this non-competition covenant are therefore not appropriate. The foregoing restriction shall not be construed to prohibit the ownership by Executive of less than one percent of any class of securities of
any corporation which is engaged in any of the foregoing businesses having a class of securities registered pursuant to the Securities Exchange Act of 1934, provided that such ownership represents a passive investment and that neither Executive nor
any group of persons including Executive in any way, either directly or indirectly, manages or exercises control of any such corporation, guarantees any of its financial obligations, otherwise takes any part in its business, other than exercising
his rights as a shareholder, or seeks to do any of the foregoing. 
 (c) Executive acknowledges that the restrictions contained in paragraph
(a) are reasonable and necessary to protect the legitimate interests of the Company and its subsidiaries and affiliates, and that any violation of those provisions will result in irreparable injury to the Company. Executive represents that his
experience and capabilities are such that the restrictions contained in paragraph (a) will not prevent Executive from obtaining employment or otherwise earning a living at the same general level of economic benefit as is the case as of the date
hereof. Executive agrees that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, 

  
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which right shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled. In the event that any of the provisions of paragraph (a) should ever be
adjudicated to exceed the time, geographic, service, or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, service, or other
limitations permitted by applicable law. 
 11. Other Agreements. Executive represents and warrants to Company that: 

(a) Executive has informed the Company in writing of any restrictions, agreements or understandings whatsoever to which Executive is a party or
by which he is bound that could prevent or make unlawful Executive’s execution of this Agreement or Executive’s employment hereunder, or which could be inconsistent or in conflict with this Agreement or Executive’s employment
hereunder, or could prevent, limit or impair in any way the performance by Executive of his obligations hereunder. 
 (b) Executive shall
disclose the existence and terms of the restrictive covenants set forth in Section 10 to any employer by whom Executive may be employed during the Term (which employment is not hereby authorized) or any period during which his activities are
restricted by virtue of the covenants described in Section 10 hereof. 
 12. Survival of Provisions. The provisions of
this Agreement shall survive the termination of Executive’s employment hereunder and the payment of all amounts payable and delivery of all post-termination compensation and benefits pursuant to this Agreement incident to any such termination
of employment. 
 13. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon Company and its
successors or permitted assigns and Executive and his executors, administrators or heirs. The Company shall require any successor or successors expressly to assume the obligations of Company under this Agreement. For purposes of this Agreement, the
term “successor” shall include the ultimate parent corporation of any corporation involved in a merger, consolidation, or reorganization with or including the Company that results in the stockholders of Company immediately before such
merger, consolidation or reorganization owning, directly or indirectly, immediately following such merger, consolidation or reorganization, securities of another corporation. Executive may not assign any obligations or responsibilities under this
Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of Company. 
 14.
Notices. All notices required to be given to any of the parties of this Agreement shall be in writing and shall be deemed to have been sufficiently given, subject to the further provisions of this Section 14, for all purposes when
presented personally to such party, or sent by facsimile transmission, any national overnight delivery service, or certified or registered mail, to such party at its address set forth below: 

(a) If to Executive: 

Christopher Franklin 
 (b) If
to the Company: 
 Aqua America, Inc. 

762 W. Lancaster Avenue 
 Bryn
Mawr, PA 19010-3489 
 Attn: Chairman, Executive Compensation Committee 

  
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 Such notice shall be deemed to be received when delivered if delivered personally, upon electronic or other
confirmation of receipt if delivered by facsimile transmission, the next business day after the date sent if sent by a national overnight delivery service, or three (3) business days after the date mailed if mailed by certified or registered
mail. Any notice of any change in such address shall also be given in the manner set forth above. Whenever the giving of notice is required, the giving of such notice may be waived in writing by the party entitled to receive such notice. 

15. Entire Agreement; Amendments. This Agreement and any other documents, instruments or other writings delivered or to be
delivered in connection with this Agreement as specified herein constitute the entire agreement among the parties with respect to the subject matter of this Agreement and supersede all prior and contemporaneous agreements, understandings, and
negotiations, whether written or oral, with respect to the terms of Executive’s employment by Company (except for the Change in Control and Severance Agreement). This Agreement may be amended or modified only by a written instrument signed by
all parties hereto. 
 16. Waiver. The waiver of the breach of any term or provision of this Agreement shall not operate as or
be construed to be a waiver of any other or subsequent breach of this Agreement. 
 17. Governing Law. This Agreement shall be
governed and construed as to its validity, interpretation and effect by the laws of the Commonwealth of Pennsylvania. 
 18.
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Agreement or such provisions, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

19. Section Headings. The section headings in this Agreement are for convenience only; they form no part of this Agreement and
shall not affect its interpretation. 
 20. Counterparts. This Agreement may be executed in any number of counterparts, and
each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute one and the same instrument. 

21. Indemnification. During the Term and thereafter, the Company agrees to indemnify and hold Executive harmless in connection
with actual, potential or threatened actions or investigations related to Executive’s services for or employment by the Company and/or its subsidiaries in the same manner as other officers and directors to the extent provided in the
Company’s by-laws. 
 22. Taxes. Any payment required under this Agreement shall be subject to all requirements of the
law with regard to the withholding of taxes, filing, making of reports and the like, and Company shall use its best efforts to satisfy promptly all such requirements. 

23. Section 409A of the Internal Revenue Code. This Agreement shall be interpreted and administered in accordance with
section 409A of the Internal Revenue Code (“Section 409A”), to the extent applicable. Any payments to be made under this Agreement in connection with a termination of employment shall only be made if such termination of employment
constitutes a “separation from service” under Section 409A. Notwithstanding any provision of this Agreement to the contrary, if 

  
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Executive is a “specified employee” within the meaning of Section 409A, any payments or arrangements due upon a termination of Executive’s employment under any arrangement
that constitutes a “nonqualified deferral of compensation” within the meaning of Section 409A and which do not otherwise qualify under the exemptions under Treas. Regs. Section 1.409A-1 (including without limitation, the
short-term deferral exemption or the permitted payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall be delayed and paid or provided, without interest, on the earlier of (i) the date which is six months after Executive’s
“separation from service” (as such term is defined in Section 409A and the regulations and other published guidance thereunder) for any reason other than death, and (ii) the date of Executive’s death. All reimbursements and
in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of section 409A. 
 IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first written above. 
  

							
	Attest:				AQUA AMERICA, INC.
				
	 /s/ Christopher P. Luning
				By:		 /s/ Nicholas DeBenedictis

					By:		 /s/ Christopher H. Franklin

					CHRISTOPHER FRANKLIN

  
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 Appendix A 

Business and Charitable Activities 

Business 
  

	 	•	 	ITC Holdings, Inc. 

 Charitable/Civic 

 

	 	•	 	Trustee, University of Pennsylvania Board of Trustees, Philadelphia, PA 

  

	 	•	 	Trustee, West Chester University’s Council of Trustees, West Chester, PA 

  

	 	•	 	Director, Magee Rehabilitation Hospital, Philadelphia, PA 

  

	 	•	 	Director, The Walnut Street Theatre, Philadelphia, PA 

  
 - 8 -Exhibit 10.59

 

COMPROMISE AGREEMENT AND RELEASE

 

This Compromise Agreement and Release is
entered into by and between Twinlab Consolidated Holdings, Inc., a Nevada corporation (“Twinlab”) and Capstone Financial
Group, Inc., a Nevada corporation (“Capstone”), in order to amicably compromise and settle a dispute between them for
their mutual advantage.

 

1.Surrender of Series A Warrant.
Capstone hereby surrenders to Twinlab the Series A Warrant dated September 30, 2014 which Twinlab had given in favor of Capstone,
and the Series A Warrant (and all rights and obligations of any party thereunder) are hereby terminated. Capstone’s April
2015 exercises of the Series A Warrant for 657,895 shares of Twinlab common stock and the issuance to Capstone of such 657,895
shares of Twinlab common stock are expressly confirmed and validated, and shall not be affected by this Compromise Agreement and
Release.

 

2.Common Stock Put Agreement.
The Common Stock Put Agreement by and between Twinlab and Capstone dated September 30, 2014 (and all rights and obligations of
any party thereunder) are hereby terminated.

 

3.Non-Liability. Neither Twinlab
nor any person related to Twinlab shall have any liability to Capstone in connection with the termination of the Series A Warrant
and/or the Common Stock Put Agreement hereunder, and/or in connection with the amendment pursuant hereto of the Series B Warrant
dated September 30, 2014 which Twinlab had given in favor of Capstone. Neither Capstone nor any person related to Capstone shall
have any liability to Twinlab in connection with the termination of the Series A Warrant and/or the Common Stock Put Agreement
hereunder, and/or in connection with the amendment of the Series B Warrant pursuant hereto.

 

4.Amendment of Series B Warrant.
In consideration for the termination of the Common Stock Put Agreement, and as partial consideration for entry into this Compromise
Agreement and Release, the parties shall contemporaneously herewith enter into and execute an amendment to the Series B Warrant
in the form set forth on Exhibit A attached hereto. For avoidance of doubt: the Series B Warrant, as so amended, shall continue
in full force and effect notwithstanding any possible interpretation of Section 7 and/or 8 hereof to the contrary.

 

5.Contingent Call Options. In
consideration for the surrender of the Series A Warrant, and as partial consideration for entry into this Compromise Agreement
and Release, Capstone hereby grants to Twinlab three separate contingent call option rights (“Contingent Call Option 2,”
“Contingent Call Option 3,” and “Contingent Call Option 4”) to acquire from Capstone, at a call option
exercise price of $0.01 per share, a number of shares of outstanding Company Common Stock owned by Capstone (free of all security
interests, liens and adverse claims) as set forth on Exhibit B attached hereto and with the other terms and conditions as set forth
on Exhibit B attached hereto, including the express condition that the respective contingent call option shall in no event be exercisable
to any extent unless its respective applicable “Liquidity Condition” (as set forth on Exhibit B attached hereto) has
been fully satisfied. The parties expressly agree that this Section 5 is an essential element of this Compromise Agreement and
Release. Capstone agrees that to the degree and as of the date that any of Twinlab’s Contingent Call Option rights have been
triggered and arise pursuant to the terms hereof (including without limitation the terms set forth in Exhibit B) that Capstone
shall own a sufficient number of shares of Company Common Stock to be able to satisfy Capstone’s obligations with respect
to each such Contingent Call Option as of the date it arises.

 

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6.Other Agreements and Securities.
The Registration Rights Agreement between Twinlab and Capstone, dated September 30, 2014, shall continue in full force and effect
and shall apply to the Series B Warrant as amended pursuant to this Compromise Agreement and Release (and the shares of Twinlab
Common Stock issuable and issued thereunder). The parties confirm that, except as otherwise expressly set forth herein, this Compromise
Agreement and Release shall have no effect on Capstone’s free and clear title to any and all Twinlab shares owned by Capstone.
In addition, and for avoidance of doubt, the Confidentiality, Non-Disclosure & Non-Circumvention Agreement between Twinlab
Consolidation Corporation and Capstone, dated September 25, 2013, shall continue in full force and effect.

 

7. Special Releases. Capstone,
for itself and its current, former and future subsidiaries and its and their predecessors, successors, officers, directors, stockholders,
agents, employees and assigns, fully and forever releases and discharges Twinlab and each of its current, former and future subsidiaries,
affiliates, related entities, creditors, stockholders, assigns and successors and each of its and their predecessors, successors,
officers, directors, stockholders, constituent partners, managers, members, agents, employees and assigns, with respect to any
and all claims, liabilities and causes of action, of every nature, kind and description, in law, equity or otherwise, which have
both (a) arisen, occurred or existed at any time before the signing of this Compromise Agreement and Release and (b) arisen,
occurred or existed (i) under the Series A Warrant (or a breach thereof), the Series B Warrant (or a breach thereof) and/or the
Common Stock Put Agreement (or a breach thereof) or (ii) in connection with the inducement of Capstone to enter into the Series
A Warrant, the Series B Warrant, the Common Stock Put Agreement and/or other agreements related thereto.

 

Twinlab, for itself and its current, former
and future subsidiaries and its and their predecessors, successors, officers, directors, stockholders, agents, employees and assigns,
fully and forever releases and discharges Capstone and each of its current, former and future subsidiaries, affiliates, related
entities, creditors, stockholders, assigns and successors and each of its and their predecessors, successors, officers, directors,
stockholders, constituent partners, managers, members, agents, employees and assigns, with respect to any and all claims, liabilities
and causes of action, of every nature, kind and description, in law, equity or otherwise, which have both (a) arisen, occurred
or existed at any time before the signing of this Compromise Agreement and Release and (b) arisen, occurred or existed (i) under
the Series A Warrant (or a breach thereof), the Series B Warrant (or a breach thereof) and/or the Common Stock Put Agreement (or
a breach thereof) or (ii) in connection with the inducement of Twinlab to enter into the Series A Warrant, the Series B Warrant,
the Common Stock Put Agreement and/or other agreements related thereto.

 

8.Special Releases Apply To All Claims Within the
Scope. Capstone expressly agrees and understands that the special release given by it pursuant to this Compromise Agreement
and Release applies to all unknown, unsuspected, and unanticipated claims, liabilities, and causes of action which it may have
against Twinlab and which would fall within the express scope of such special release, and such special release shall be fully
effective even in the event that the parties hereafter discover facts in addition to, or different from, those which they/it now
know or believe to be true.

 

Twinlab expressly agrees and understands
that the special release given by it pursuant to this Compromise Agreement and Release applies to all unknown, unsuspected, and
unanticipated claims, liabilities, and causes of action which it may have against Capstone and which would fall within the express
scope of such special release, and such special release shall be fully effective even in the event that the parties hereafter discover
facts in addition to, or different from, those which they/it now know or believe to be true.

 

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9.Noncircumvention. Capstone
is the owner of certain freely tradable shares of Twinlab common stock and has identified, and may in the future identify, to Twinlab
on a confidential basis persons to whom Capstone might sell shares of such freely tradable stock from its holdings. Twinlab hereby
agrees that it shall not, without Capstone’s prior written consent, privately place Twinlab equity securities to any persons
heretofore or hereafter first introduced to Twinlab by Capstone as described above; provided that Twinlab may, without Capstone’s
consent, privately place Twinlab equity securities to such a person at any time after the earlier of (a) the date the entire Series
B Warrant (as amended pursuant hereto) has expired and/or been exercised, or (b) the first anniversary of such particular introduction.
Nothing contained herein shall require Twinlab to provide Capstone or persons identified by Capstone information that is not available
in Twinlab’s public filings, and Capstone represents and warrants that any activities undertaken by Capstone or its representatives
with any such persons or entities with whom it engages shall be done in compliance with all applicable securities laws and regulations.

 

10.Sophisticated Investor. Twinlab
has informed Capstone that Twinlab is in possession of confidential or material, non-public information (“Excluded Information”)
related to Twinlab, including its subsidiaries, and/or Twinlab’s common stock which, if publicly disclosed, could affect
the trading price of Twinlab’s common stock. Excluded Information has not been disclosed to Capstone, and Capstone accepts
the risk that the Excluded Information will not be known to Capstone prior to the consummation of this Compromise Agreement and
Release or the amendment to the Series B Warrant pursuant hereto and of the impact of the Excluded Information on the value of
Twinlab’s common stock. Notwithstanding any possession of Excluded Information by Twinlab and the absence of disclosure thereof
to Capstone, Capstone desires to enter into this Comprise Agreement and Release for its own business purposes and agrees that Twinlab
shall not have any liability to Capstone, and Capstone irrevocably waives any and all rights, claims or causes of action, whether
known or unknown and whether currently existing or hereafter arising, against Twinlab and each of its current, former and future
subsidiaries, affiliates, related entities, creditors, stockholders, assigns and successors and each of its and their predecessors,
successors, officers, directors, stockholders, constituent partners, managers, members, agents, employees and assign, with respect
to the existence, possession, or non-disclosure of any Excluded Information, whether arising directly, derivatively or indirectly,
primarily or secondarily, by contract or operation of law or otherwise. Capstone represents that it is a sophisticated investor,
has conducted an independent evaluation of Twinlab and its securities to the extent Capstone deems necessary to make an informed
investment decision with respect to this Compromise Agreement and Release and the amendment to the Series B Warrant made pursuant
hereto and has not relied upon Twinlab for this evaluation, except to the extent of Twinlab’s public filings.

 

11.Facilitation. Each party hereto
agrees to execute and perform such other documents and acts as are reasonably required in order to facilitate the terms of this
Compromise Agreement and Release, and the intent thereof, and to cooperate in good faith in order to effectuate the provisions
of this Compromise Agreement and Release.

 

12.Entire Agreement. This Compromise
Agreement and Release contains the entire understanding and agreement between the parties hereto with respect to the matters referred
to herein and, in conjunction with the Amendment No. 1 to Series B Warrant executed by the parties pursuant hereto, supersedes
any and all prior and contemporaneous commitments, undertakings and agreements, whether written or oral, with respect to the subject
matter hereof. The parties further acknowledge and agree that parol evidence shall not be required to interpret the intent of the
parties. No other representations, warranties, covenants, undertakings, commitments, promises or other prior or contemporary agreements,
whether oral or written, respecting such matters, which are not specifically incorporated herein, shall be deemed in any way to
exist or bind either of the parties. The parties acknowledge that each party has not relied, in deciding whether to enter into
this Compromise Agreement and Release on this Compromise Agreement and Release’s expressly stated terms and conditions, on
any representations, warranties, covenants, undertakings, commitments, promises or agreements, which are not expressly set forth
within this Compromise Agreement and Release.

 

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13.Waiver, Amendment, and Modification
of Compromise Agreement and Release. The parties agree that no waiver, amendment, or modification of any of the terms and/or
conditions of this Compromise Agreement and Release shall be effective unless in writing and signed by both parties. No waiver
of any term, condition or default of any term of this Compromise Agreement and Release shall be construed as a waiver of any other
term, condition or default.

 

14.Attorneys’ Fees and Costs.
Each party shall be responsible for its own legal fees and costs in connection with the negotiation, preparation and entering into
of this Compromise Agreement and Release.

 

15.New York Law. This Compromise
Agreement and Release and its terms shall be governed by and construed under New York, without regard to conflict-of-law principles.

 

16.Careful Consideration; No Coercion.
Each party hereby agrees that it has read this Compromise Agreement and Release carefully, and understands the import and substance
of each and all of the terms set forth in this Compromise Agreement and Release. Each of Capstone and Twinlab understands and agrees
that if any of the facts or matters upon which it now relies in making this Compromise Agreement and Release hereafter prove to
be otherwise, this Compromise Agreement and Release will nonetheless remain in full force and effect. Each of Capstone and Twinlab
is entering this Compromise Agreement and Release voluntarily, without any coercion, and based upon its own judgment.

 

17.Effect of Compromise. The
parties each acknowledge and agree (a) that the terms specified in this Compromise Agreement and Release are a full and complete
compromise of matters involving disputed issues of law and fact; (b) that neither any party’s agreement to these terms nor
any party’s statement made during the negotiations for this Compromise Agreement and Release shall be considered, nor shall
they be, admissions by any party hereto; and (c) that no past or present wrongdoing shall, by virtue of the execution and delivery
hereof, be implied or claimed on the part of the parties to this Compromise Agreement and Release.

 

18.No Admissions by Parties.
This Compromise Agreement and Release shall not in any way be construed as an admission by either party of any wrongdoing, or of
any liability, or of any breach or violation of any contract or any law, and each party specifically disclaims any wrongdoing and
liability whatsoever.

 

19.No Presumption from Drafting.
Both parties have cooperated in the drafting and preparation of this Compromise Agreement and Release. No presumption for or against
either party arising out of drafting all or any part of this Compromise Agreement and Release will be applied in any action or
proceeding involving this Compromise Agreement and Release. Accordingly, the parties hereby waive the benefit of any federal, state
or local law or principle, providing that in cases of uncertainty, language of a contract should be interpreted against the party
who caused the uncertainty to exist. This Compromise Agreement and Release is the product of a freely-negotiated, bargained-for
exchange of valuable consideration.

 

    	4

    	 

    

 

20.No Event of Default. The parties
acknowledge and confirm that Twinlab never delivered to Capstone a Put Notice (as defined in the Common Stock Put Agreement) and
that there has never been an Event of Default (as defined in the Common Stock Put Agreement).

 

21.Severability.This Compromise
Agreement and Release is severable. If any portion(s) of this Compromise Agreement and Release is found to be unenforceable, the
portion(s) shall be construed in such a manner as will to the maximum extent possible enable such portion(s) to be enforceable,
the remaining portions of this Compromise Agreement and Release shall be enforced to the maximum extent possible, and the unenforceable
portion will not affect the enforceability of the remaining provisions.

 

22.Authorization. Each party
represents and warrants to the other party that its execution and delivery of this Compromise Agreement and Release have been duly
authorized by its Board of Directors and do not violate any law or any agreement between it and any third party. Each individual
signing this Compromise Agreement and Release on behalf of a party represents and warrants in his individual capacity to the other
party that his execution and delivery of this Compromise Agreement and Release on behalf of such first party has been duly authorized
by such first party’s Board of Directors.

 

IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Compromise Agreement and Release.

 

 

	Dated: May 28, 2015	TWINLAB CONSOLIDATED HOLDINGS, INC.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Thomas Tolworthy	 
	 	 	Thomas Tolworthy, President & CEO	 

 

 

	Dated: May 28, 2015	CAPSTONE FINANCIAL GROUP, INC.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Darin Pastor	 
	 	 	Darin Pastor, CEO	 

 

 

    	5

    	 

    

 

 

EXHIBIT A

 

AMENDMENT NO. 1 TO SERIES
B WARRANT

 

This Amendment No. 1 to Series B Warrant (“Amendment
No. 1”) is made and entered into as of May 28, 2015 (the “Effective Date”) by and between Twinlab
Consolidated Holdings, Inc. (“TCH” or the “Company”), a Nevada corporation, and Capstone
Financial Group, Inc., a Nevada corporation (“Capstone” or “Registered Owner”).

 

WHEREAS, TCH and Capstone are parties
to that certain Series B Warrant, Warrant Number: B-CAP-001, dated as of September 30, 2014 (the “Series B Warrant”);

 

WHEREAS, TCH and Capstone wish to
modify the terms of the Series B Warrant as set forth below;

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties hereto agree as follows:

 

		1.	The number of shares of Common Stock exercisable under the Series B Warrant is amended to be 18,000,000 (i.e., Capstone is
immediately surrendering 4,368,421 of the original 22,368,421 warrants).

 

		2.	The last sentence of Section 5 of the original Series B Warrant is deleted.

 

		3.	Section 19 of the original Series B Warrant is deleted ab initio.

 

		4.	The address for notice to the Registered Owner as set forth in Paragraph 21 of the original Series B Warrant is changed to:

 

	“If to the Registered Owner:	
        Capstone Financial Group, Inc.

        8600 Transit Road

        East Amherst, NY 14051

        E-mail: dpastor@capstonefg.com

        Attention: Darin R. Pastor

         

	with a copy to (which shall not constitute notice to the Registered Owner):	
        Stradling Yocca Carlson & Rauth, P.C.

        4365 Executive Drive, Suite 1500

        San Diego, CA 92121

        E-mail:htrubitt@sycr.com

        Attention: Hayden Trubitt” 

 

		5.	The Series B Warrant shall, for the purpose of determining the expiration dates of the Registered Owner’s rights to exercise
the Series B Warrant (and for the purpose of Exhibit B of that certain Compromise Agreement and Release between the parties of
equal date herewith), be considered as if it were divided into four tranches, as follows:

 

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		a.	“Tranche 1”: the “first” segment consisting of 2,000,000 shares exercisable under the Series B Warrant
as hereby amended.

 

		b.	“Tranche 2”: the “second” segment consisting of 4,000,000 shares exercisable under the Series B Warrant
as hereby amended (i.e., available warrant shares no. 2,000,001 through 6,000,000).

  

		c.	“Tranche 3”: the “third” segment consisting of 6,000,000 shares exercisable under the Series B Warrant
as hereby amended (i.e., available warrant shares no. 6,000,001 through 12,000,000).

  

		d.	“Tranche 4”: the “fourth” segment consisting of 6,000,000 shares exercisable under the Series B Warrant
as hereby amended (i.e., available warrant shares no. 12,000,001 through 18,000,000).

  

		6.	The expiration dates for Registered Owner’s rights to exercise each Tranche referenced in Section 5 above, shall be as
follows:

 

		a.	The “Tranche 1” warrant shares shall in no event be exercisable after 5:00 p.m., New York Time, November 30, 2015.

 

		b.	The “Tranche 2” warrant shares shall in no event be exercisable after 5:00 p.m., New York Time, March 31, 2016.

 

		c.	The “Tranche 3” warrant shares shall in no event be exercisable after 5:00 p.m., New York Time, July 31, 2016.

 

		d.	The “Tranche 4” warrant shares shall in no event be exercisable after 5:00 p.m., New York Time, November 30, 2016.

 

		7.	Except as expressly modified by this Amendment No. 1, all terms and conditions of the Series B Warrant shall remain in full
force and effect.

 

		8.	This Amendment No. 1 shall be governed by and construed in accordance with the internal laws of the State of New York without
giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction).

 

		9.	The share figures expressed in this Amendment No. 1 shall be proportionately adjusted if the Company, by stock split, stock
dividend, reverse split, reclassification of shares, or otherwise, changes as a whole the outstanding Common Stock into a different
number or class of shares, such adjustment to be effective immediately before the date upon which the change becomes effective.

 

		10.	This Amendment No. 1 may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall be deemed to be one and the same instrument. A signed copy of this Amendment No. 1 delivered by facsimile, email or other
means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Amendment
No. 1.

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Amendment No. 1 to be duly executed and delivered as of the day and year first written above.

 

	 	TWINLAB CONSOLIDATED HOLDINGS, INC.
	 	 	 	 
	 	 	 	 
	 	By: 	 
	 	 	Name: 	Thomas A. Tolworthy
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	CAPSTONE FINANCIAL GROUP, INC.
	 	 	 	 
	 	 	 	 
	 	By:	 
	 	 	Name: 	Darin R. Pastor
	 	 	Title: 	Chief Executive Officer

  

    	8

    	 

    

 

EXHIBIT B

 

CONTINGENT CALL OPTION
TERMS 

 

	 	Contingent Call Option 2	Contingent Call Option 3	Contingent Call Option 4
	Number of Shares	25% of the difference, if any and if positive, of 4,000,000 minus the number of Series B Warrant shares within “Tranche 2” which were exercised (including payment therefor) by Capstone before “Tranche 2” ceases to be exercisable under the terms of the Series B Warrant, as amended [i.e., the maximum possible number of shares subject to Contingent Call Option 2 is 1,000,000]	25% of the difference, if any and if positive, of 6,000,000 minus the number of Series B Warrant shares within “Tranche 3” which were exercised (including payment therefor) by Capstone before “Tranche 3” ceases to be exercisable under the terms of the Series B Warrant, as amended [i.e., the maximum possible number of shares subject to Contingent Call Option 3 is 1,500,000]	25% of the difference, if any and if positive, of 6,000,000  minus the number of Series B Warrant shares within “Tranche 4” which were exercised (including payment therefor) by Capstone before “Tranche 4” ceases to be exercisable under the terms of the Series B Warrant, as amended [i.e., the maximum possible number of shares subject to Contingent Call Option 4 is 1,500,000]
	Date First Exercisable (If Ever)	April 1, 2016	August 1, 2016	December 1, 2016
	Expiration Date	May 1, 2016	August 31, 2016	December 31, 2016
	Liquidity Condition	(a) As of January 31, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 7 months period ending on such date shall not be less than 1.15x, and (b) as of February 29, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 8 months period ending on such date shall not be less than 1.15x; and (c) as of March 31, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 9 months period ending on such date shall not be less than 1.15x	(a) As of April 30, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 10 months period ending on such date shall not be less than 1.15x, and (b) as of May 31, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 11 months period ending on such date shall not be less than 1.15x,  and (c) as of the end of each month beginning June 2016 and ending July 2016, Twinlab’s Fixed Charge Coverage Ratio for the period of trailing 12 months ending on such month-end shall not be less than 1.15x	As of the end of each month beginning August 2016 and ending November 2016, Twinlab’s Fixed Charge Coverage Ratio for the period of trailing 12 months ending on such month-end shall not be less than 1.15x

  

    	9

    	 

    

 

It is intended that for the purposes of
the Liquidity Condition specifications set forth herein, the terms “Fixed Charge Coverage Ratio” and “Fixed Charges”
shall have the same meaning as in the Credit and Security Agreement dated January 22, 2015 (the “Credit Agreement”)
filed as Exhibit 10.23 to Twinlab’s January 28, 2015 Current Report on Form 8-K (and without regard to any later amendments
or waivers of or forbearances under such Credit Agreement). The definitions of Fixed Charge Coverage Ration and Fixed Charges as
currently set forth in the Credit Agreement are:

 

Fixed Charge Coverage Ratio = for any period,
the ratio of (i) adjusted EBITDA for such period, plus (a) cash received during such period for Equity Interests so long as such
cash is used as working capital and such cash is not received more than two times in any trailing-twelve-months period, minus (b)
Non-Financed Capital Expenditures made (to the extent not already incurred in a prior period) or incurred during such period, minus
(c) cash taxes paid during such period, to the extent greater than zero, and minus (d) Permitted Distributions under clause (d)
of the definition of that term, to (ii) Fixed Charges for such period

 

Fixed Charges = with respect to any fiscal
period and with respect to the Borrowers and their Subsidiaries determined on a consolidated basis in accordance with GAAP, the
sum, without duplication, of (a) cash Interest Expense paid during such period (other than interest paid-in-kind, amortization
of financing fees, and other non-cash Interest Expense), (b) principal payments paid in cash in respect of Debt paid during such
period, including cash payments with respect to Capital Leases, but excluding principal payments made on the revolving loans, and
(c) all Permitted Distributions (other than Permitted Distributions under clause (d) of the definition of that term) and other
distributions paid in cash during such period

 

If the Company, by stock split, stock dividend,
reverse split, reclassification of shares, or otherwise, changes as a whole the outstanding Common Stock into a different number
or class of shares, then: (1) the number and/or class of shares as so changed shall, for the purposes of the Contingent Call Options,
replace the shares outstanding immediately before the change; and (2) the purchase price in effect, and the number of shares purchasable
under the Contingent Call Options, immediately before the date upon which the change becomes effective, shall be proportionately
adjusted (the price to the nearest cent). 

 

    	10

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