Document:

Exhibit 10.1

 

SETTLEMENT AGREEMENT

 

This Confidential Settlement Agreement
(“Agreement”) is entered into as of the date of the last signature to this Agreement (“Effective Date”), by and
between VPR BRANDS, LP (“VPR”), a Delaware limited partnership authorized to do business in Florida with a principal
place of business located at 3001 Griffin Road, Fort Lauderdale, FL 33312, on the one hand; and XL VAPE, LLC (“XL Vape”),
a limited liability company with a principal place of business at 1506 W. 28th Street, Torrance, CA 90501, VGOD LLC
(“VGOD”), a limited liability company with a principal place of business at 1506 W. 28th Street, Torrance, CA 90501,
SALTNIC LLC (“SaltNic”), a limited liability company with a principal place of business at 1506 W. 28th
Street, Torrance, CA 90501, on the other hand. XL Vape, VGOD and SaltNic will be hereafter collectively referred to as the “XL Parties.”
Each of the foregoing may be referred to hereafter as a “Party”, and together as the “Parties.”

 

WHEREAS, VPR and XL Vape were parties
to a lawsuit captioned VPR Brands, LP. v. XL Vape, LLC, Civil Action No. 2:21-cv-01110(MCS), which was dismissed without prejudice
in the United States District Court for the Central District of California, by stipulation of the Parties filed on July 26, 2021 (the
“Action”);

 

WHEREAS, VPR alleges patent infringement
of United States Patent No. 8,205,622 (the “‘622 Patent”), which allegations the XL Parties deny and to which the XL
Parties raise affirmative defenses and counterclaims of non-infringement, invalidity and unenforceability of the ‘622 Patent, among
others;

 

WHEREAS, VPR desires to license the
‘622 Patent and related patents and applications to the XL Parties, and the XL Parties desire to acquire a license to such intellectual
property as hereinafter provided;

 

WHEREAS, the Parties desire a mutually beneficial, dispute-avoiding
arrangement;

 

WHEREAS, VPR and the XL Parties
wish to settle and compromise the Action, and all other claims, demands, and controversies between them relating to the Action;

 

NOW THEREFORE
and in consideration of the terms and conditions hereinafter set forth and for other good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, the Parties agree as follows:

 

		1.	Recitals.

 

The foregoing recitals are true
and correct, incorporated herein and made a part of this Agreement.

 

		2.	Settlement Payment by the XL Parties

 

Each Party shall bear its own attorneys’
fees and costs relating to the Action, and each Party waives any and all claims for monetary relief related to the Action. Notwithstanding
the foregoing, the XL Parties shall pay VPR the collective sum of One Hundred and Fifty-Five Thousand ($155,000.00) (the “Settlement
Sum”) within 14 days after the Effective Date and after payment details are provided to XL Parties, whichever is later. For the
avoidance of any doubt, the Settlement Sum reflects the total payment from all three XL Parties collectively and not an amount that each
of the XL Parties agrees to pay to VPR. The Parties agree that Settlement Sum may be issued by any of the XL Parties, or a third party,
and shall enure to the benefit of all of the XL Parties and constitute satisfaction of this provision on behalf of all of the XL Parties.
Payment shall be made by wire payment to the SRIPLAW Trust Account. Payment details to provided separately by SRIPLAW.

 

     

     

    

 

The Parties agree and acknowledge
that the Settlement Sum shall not be construed as an admission or acknowledgment that reflects, evidences, or supports any of the alleged
harm and alleged damages as asserted by the Plaintiff. No other outside party will be entitled to a set off, or otherwise, with respect
to the Settlement Sum. Each Party shall bear its own attorney’s fees and costs incurred in connection with all proceedings and related
to this matter, including the preparation and drafting of this Agreement.

 

		3.	VPR Representations, Warranties and Covenants.

 

VPR represents and warrants that:
(i) it is the sole and exclusive owner of all right, title, and interest in and to the ‘622 Patent, and that no other third party
owns any right to recover for infringement of or to assert any rights in or under the ‘622 Patent; (ii) it has the full, sole, and
exclusive right to grant the licenses of the full scope set forth herein; (iii) it has the full, sole, and exclusive right to grant the
releases and covenants set forth herein without the need for any consents, authorizations, or approvals not yet granted or obtained; (iv)
there are no liens, conveyances, mortgages, assignments, encumbrances, or any other agreements or understandings that would prevent or
impair the full and complete exercise of the terms of this Agreement, including the grant of the licenses and releases hereunder; (v)
it has not assigned or otherwise transferred to any other entity any rights to the Licensed Patents or otherwise that would conflict or
prevent it from entering into this Agreement.

 

		4.	Grant of Non-Exclusive License to XL; Covenant Not to Challenge; Assignment

 

4.1 
Grant of Fully Paid-Up License. Upon receipt of the Settlement Sum, VPR hereby grants to each of the XL Parties a fully
paid-up, royalty free, non-exclusive license to practice the invention in the ‘622 Patent and all related patents and applications
including, without limitation, the rights to make, have made, use, import, license, offer to sell, and sell the invention in the ‘622
Patent and all related patents and applications, domestic and foreign.

 

4.2 
Covenant Not to Challenge ‘622 Patent. Each of the XL Parties covenants that they will take no action, directly or
indirectly to render any claim of the ‘622 Patent invalid or unenforceable or not infringed, and that it will take no action, directly
or indirectly to aid or assist any third-party to render any claim of any ‘622 Patent invalid or unenforceable or not infringed.

 

4.3 
Assignment by XL. XL Vape, VGOD and/or SaltNic may not assign this Agreement, or assign or delegate any right or obligation
under this Agreement, in whole or in part, without the prior written consent of VPR, which consent shall not be unreasonably withheld,
except that XL Vape, VGOD and/or SaltNic may assign their non-exclusive license to an acquirer of all or substantially all of the equity
or assets of their respective business or the surviving entity in any merger, consolidation, equity exchange, or reorganization of their
business, provided that assignment does not materially enlarge or expand the rights granted to XL Vape, VGOD and/or SaltNic as determined
by XL Vape, VGOD and/or SaltNic’s business in the licensed products prior to the execution of this Agreement.

 

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4.4 
Assignment by VPR. VPR may not assign this Agreement or its rights under the ‘622 Patent unless such assignments or
transfers of rights are made subject to the rights granted to the XL Parties in this Agreement.

 

		5.	Mutual General Release.

 

Each Party for itself and on behalf
of its parents, subsidiaries, related companies, affiliates, assigns, and predecessor entities hereby remises, releases, acquits, satisfies,
and forever discharges each and every other Party (including each Party’s past and present parent, subsidiary, affiliated, related
or predecessor entities, and any and all of each such Party’s past and present officers, directors, agents, attorneys, accountants,
representatives, insurers, servants, employees, independent contractors, shareholders, members, and partners) (hereinafter collectively
referred to as the “Releasees”), of and from any and all manner of, claims, actions, causes of action, suits, debts, sums
of money, accounts, reckonings, contracts, controversies, agreements, promises, damages, attorney’s fees, obligations and demands
whatsoever, in law or in equity, whether based on contract, statute, tort, or strict liability, and whether for compensatory, special,
punitive, statutory, or any other damages or remedies (collectively the “Claims”), which each Party had or now has against
any of the Releasees prior to the Effective Date of this Agreement. Notwithstanding the foregoing, each Party expressly excludes from
the effect of this Release and does not release the Releasees from the terms, conditions, obligations, and promises set forth in this
Agreement.

 

In providing the general release,
the Parties hereby waive any and all rights they may have pursuant to California Civil Code §1542 which provides as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN
BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

 

		6.	Governing Law and Venue.

 

This Agreement shall be governed
by the laws of the United States and the laws of the State of California. The Parties agree that any suit, action, or other proceeding
arising out of, or in connection with this Agreement shall be brought exclusively in the U.S. District Court for the Central District
of California, and each Party hereby irrevocably consents and submits itself to, the proper and exclusive jurisdiction and venue of the
U.S. District Court for the Central District of California for such purpose.

 

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		7.	Attorneys’ Fees for Enforcement of Agreement.

 

In the event of any litigation or
proceeding, relating to the enforcement, interpretation, or breach of this Agreement, the prevailing party shall recover its reasonable
attorneys’ fees, costs, and expenses incurred in connection with such litigation or proceedings, and including all such fees, costs,
or expenses on appeal.

 

		8.	Binding Effect and Parties Bound.

 

This Agreement and all covenants
and releases set forth herein shall be binding upon and shall inure to the benefit of the Parties to this Agreement, their legal successors,
agents, heirs, assigns, partners, officers, directors, representatives, owners, shareholders, employees, affiliated corporations and business
entities.

 

		9.	Authority.

 

Each of the undersigned signatories
who signs this Agreement on behalf of another entity represents and warrants that they are authorized to execute this Agreement on behalf
of that Party.

 

		10.	Mutual Representations and Warranties.

 

Each Party represents and warrants
that, as of the Effective Date, (1) it has the authority to execute this Agreement and has full right, power, and authority to enter into
this Agreement and to be legally bound by the terms, conditions, covenants, and releases set forth herein, and (2) this Agreement and
its performance under this Agreement will not violate any other agreements between it and any other entity.

 

		11.	Entire Agreement.

 

The Parties acknowledge and represent
that no promise or representation not contained in this Agreement has been made to them, and that this Agreement contains the entire understanding
and agreement between the Parties. This Agreement supersedes all prior negotiations and agreements, proposed or otherwise, written or
oral, concerning the subject matter hereof, and contains all terms and conditions pertaining to the compromise and settlement of any and
all disputes relating to the Action.

 

		12.	Headings and Captions.

 

Headings and captions contained
in this Agreement are for convenience only, and shall not be considered for any purpose in construing this Agreement.

 

		13.	No Presumption Against Drafting Party.

 

This Agreement and the provisions
contained herein shall not be construed or interpreted for or against any Party hereto because said Party drafted or caused the Party’s
legal representative to draft any of the provisions.

 

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		14.	Severability.

 

Each provision of this Agreement
shall be considered severable. If for any reason any provision or provisions herein are determined to be invalid or contrary to any existing
or future law, such invalidity shall not impair the operation or effect of any other provision of this Agreement.

 

		15.	Amendments.

 

No modification of this Agreement
shall be binding unless in writing and signed by the party to be charged.

 

		16.	Notices.

 

All notices, requests, consents,
claims, demands, waivers, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered
by hand to such Party’s address set out herein with written confirmation of receipt; (b) when received by the addressee if sent
by a nationally recognized overnight courier, receipt requested; (c) on the fifth day after the date mailed to such Party’s address
set out herein, by certified or registered mail, return receipt requested, postage prepaid; or (d) when sent by electronic mail to counsel
at the addresses below.

 

If to VPR, Notices shall be made to:

 

Kevin Frija

CEO

VPR Brands

3001 Griffin Road

Fort Lauderdale, FL 33312

kevin.frija@vprbrands.com

 

with courtesy copy to:

SRIPLAW

Attn: Joel Rothman

21301 Powerline Road

Suite 100

Boca Raton, FL 33433

joel@sriplaw.com

 

If to XL Vape, Notices shall be made to:

 

Wally Aloteibi

1506 W 228th St

Torrance, CA 90501

Wally@xlvape.com

 

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with courtesy copies to:

Jeff Grant

Fox Rothschild LLP

10250 Constellation Blvd, Suite 900

Los Angeles, California
90067

jgrant@foxrothschild.com

 

James Yang

Klein, O’Neill & Singh LLP

30 Corporate Park, Suite 211

Irvine, CA 92606

 

If to VGOD, Notices shall be made to:

 

Wally Aloteibi

1506 W 228th St

Torrance, CA 90501

Wally@xlvape.com

 

with courtesy copies to:

Jeff Grant

Fox Rothschild LLP

10250 Constellation Blvd, Suite 900

Los Angeles, California
90067

jgrant@foxrothschild.com

 

James Yang

Klein, O’Neill & Singh LLP

30 Corporate Park, Suite 211

Irvine, CA 92606

 

If to SaltNic, Notices shall be made to

 

Wally Aloteibi

1506 W 228th St

Torrance, CA 90501

Wally@xlvape.com

 

with courtesy copies to:

Jeff Grant

Fox Rothschild LLP

10250 Constellation Blvd, Suite 900

Los Angeles, California
90067

jgrant@foxrothschild.com

 

James Yang

Klein, O’Neill & Singh LLP

30 Corporate Park, Suite 211

Irvine, CA 92606

 

		17.	Counterparts.

 

This Agreement may be executed in
any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts together constitute one
and the same Agreement. The facsimile or electronic PDF signatures of the Parties shall be enforceable just as though they were the original
signatures of the Parties.

 

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IN WITNESS WHEREOF and intended
to legally bound, the Parties have hereunto set their hands as of the date below.

 

	 	VPR BRANDS, LP.
	 	 
	Dated: 03/18/2022	By:	 /s/ Kevin Frija
	 	Name: 	Kevin Frija
	 	Title:	 CEO
	 	 
	 	 
	 	XL VAPE, LLC
	 	 
	Dated: March 17, 2022	By:	 /s/ Waleed Aloteibi
	 	Name:	Waleed Aloteibi
	 	Title:	CEO
	 	 
	 	 
	 	VGOD LLC
	 	 
	Dated: March 17, 2022	By:	/s/ Waleed Aloteibi
	 	Name:	Waleed Aloteibi
	 	Title:	CEO
	 	 
	 	 
	 	SALTNIC LLC
	 	 
	 	 
	Dated: March 17, 2022	By:	 /s/ Waleed Aloteibi
	 	Name:	Waleed Aloteibi
	 	Title:	CEO

 

 

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Exhibit 10.14
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AMENDED AND RESTATED
NON-EMPLOYEE DIRECTOR COMPENSATION POLICY
Non-employee members of the board of directors (the “Board”) of TELA Bio, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Amended and Restated Non-Employee Director Compensation Policy (this “Policy”). The cash and equity compensation described in this Policy shall be paid or granted, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”), unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company. This Policy shall become effective on January 1, 2022 (the “Effective Time”) and shall remain in effect until it is revised or rescinded by further action of the Board. This Policy may be amended, modified or terminated by the Board at any time in its sole discretion. The terms and conditions of this Policy shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non-Employee Directors and between any subsidiary of the Company and any of its non-employee directors.
(1)Cash Compensation.
​
(a)Annual Retainers. Each Non-Employee Director shall receive an annual retainer of $40,000 for service on the Board.
(b)Additional Annual Retainers. In addition, a Non-Employee Director shall receive the following annual retainers:
(i)Chairperson of the Board. A Non-Employee Director serving as Chairperson of the Board shall receive an additional annual retainer of $35,000 for such service.
(ii)Audit Committee. A Non-Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $20,000 for such service.  A Non-Employee Director serving as a member of the Audit Committee (other than the Chairperson) shall receive an additional annual retainer of $10,000 for such service.
(iii)Compensation Committee. A Non-Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $15,000 for such service.  A Non-Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional annual retainer of $7,500 for such service.
(iv)Nominating and Corporate Governance Committee. A Non-Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $10,000 for such service.  A Non-Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.
(c)Payment of Retainers.
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(i)Timing. The annual retainers described in Sections 1(a) and 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifteenth day following the end of each calendar quarter.
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(ii)Form. The annual retainers shall be paid in the form of cash; provided that the Board may, in its discretion, permit a Non-Employee Director to elect to receive any portion of the annual retainer in the form of shares of common stock of the Company (“Common Stock”) in lieu of cash.  If such an election is permitted by
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the Board and made by a Non-Employee Director, the number of shares of Common Stock to be paid shall be determined by dividing the portion of the annual retainer payable in the form of Common Stock by the Fair Market Value (as defined in the Company’s Amended and Restated 2019 Equity Incentive Plan or any other applicable Company equity plan then maintained by the Company (such plan, as may be amended from time to time, the “Equity Plan”)) per share of Common Stock on the date the annual retainer is payable.  Shares issued in lieu of cash shall be fully vested and unrestricted shares of Common Stock.  Any election by a Non-Employee Director to receive a portion of the annual retainer in shares of Common Stock must be made prior to the applicable payment date for such portion of the annual retainer and pursuant to an election form to be provided by the Company.  An election must comply with all rules established from time to time by the Board, including any insider trading policy or similar policy.  A Non-Employee Director may not make an election pursuant to this Section 1(c)(ii) during a Company blackout period or when the Non-Employee Director is otherwise in possession of material non-public information.
​
(iii)Termination of Service. In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, such Non-Employee Director shall receive a prorated portion of the retainer(s) otherwise payable to such Non-Employee Director for such calendar quarter pursuant to Section 1(b), with such prorated portion determined by multiplying such otherwise payable retainer(s) by a fraction, the numerator of which is the number of days during which the Non-Employee Director serves as a Non-Employee Director or in the applicable positions described in Section 1(b) during the applicable calendar quarter and the denominator of which is the number of days in the applicable calendar quarter.
​
(2)Equity Compensation.  Non-Employee Directors shall be granted the equity awards described below (collectively, the “Awards”). The Awards shall be granted under and shall be subject to the terms and provisions of the Equity Plan and shall be granted subject to the execution and delivery of award agreements in substantially the forms approved by the Board.  The approval of this Policy by the Board is intended to be effective for all purposes, including for purposes of satisfying Rule 16b-3(d)(1) of the Securities Exchange Act of 1934, as amended, in respect of each award issued hereunder.
​
(a)Initial Awards.  Upon a Non-Employee Director’s initial appointment or election to the Board after the Effective Time, he or she will be granted: (i) an option to purchase 8,040 shares of Common Stock at a per-share exercise price equal to the closing price per share of Common Stock on the date of such appointment or election (or on the last preceding trading day, if the date of such appointment or election is not a trading day), and (ii) a restricted stock unit award with respect to 4,702 shares of Common Stock. The Awards described in this Section 2(a) shall be referred to as “Initial Awards.”
(b)Annual Awards. Each Non-Employee Director who serves on the Board as of the date of any annual meeting of the Company’s stockholders (an “Annual Meeting”) after the Effective Time, and will continue to serve as a Non-Employee Director immediately following such Annual Meeting, shall be automatically granted on the date of such Annual Meeting: (i) an option to purchase 5,360 shares of Common Stock at a per-share exercise price equal to the closing price per share of Common Stock on the date of such Annual Meeting (or on the last preceding trading day, if the date of the Annual Meeting is not a trading day), and (ii) a restricted stock unit award with respect to 3,135 shares of Common Stock. The Awards described in this Section 2(b) shall be referred to as “Annual Awards.”
(c)Vesting of Awards. Awards will vest as follows, in each case subject to the continued service of the grantee to the Company through the applicable vesting date or event:
(i)Initial Awards described in Section 2(a)(i) will vest in 36 equal monthly installments, on the monthly anniversary of the date of grant over the 36 calendar months commencing after the grantee’s initial appointment or election to the Board.
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(ii)Initial Awards described in Section 2(a)(ii) will vest in three equal annual installments, on the first three anniversaries of the grantee’s initial appointment or election to the Board.
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(iii)Annual Awards will vest on the earlier of (A) the first anniversary of the date of grant, and (B) the date of the subsequent Annual Meeting following the date of grant.
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(iv)In addition, any otherwise unvested Awards will vest and become exercisable in full immediately prior to and contingent upon the occurrence of a Change in Control (as defined in the Equity Plan).

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