Document:

EX-10.4

  Exhibit 10.4

    

  AMERICAN WELL CORP
2020 EQUITY INCENTIVE PLAN

  NOTICE OF PERFORMANCE SHARE UNIT AGREEMENT

   

    

   

  		
	Name of Participant: 
	 Roy Schoenberg

	  
	  

	Address:  
	I c/o American Well Corp
75 State Street, 26th Floor
Boston, MA 02109

	  
	  

	Date of Grant:  
	May 16, 2022

	  
	  

	Performance Period:
	May 16, 2022 - May 16, 2025

	 
	 

	Target Number of Performance Share Units:
	 1,000,000

	 
Maximum Number of Earned Performance Share Units:
	 
7,500,000

	  
	 

	Type of Shares Issuable on Vesting:
	Class A Common Stock

	  
	  

	Vesting Schedule:
	The PSUs shall vest according to the vesting terms and conditions set forth in Exhibit A attached hereto: 

    

  The Company and the Participant acknowledge receipt of this Notice of Performance Share Unit Grant and agree to the terms and conditions of the Performance Share Unit Agreement attached hereto (including Exhibit A thereto) (the “Agreement”) and incorporated by reference herein, the Company’s 2020 Equity Incentive Plan (the “Plan”) and the terms of this Notice of Performance Share Unit Grant as set forth above. The Participant also acknowledges that in consideration for the receipt of Performance Share Units hereunder, the Participant shall have no expectation or entitlement to receive any other equity incentive award under the Company’s 2020 Equity Incentive Plan or any other plan maintained by the Company or any of its affiliates for a period of three years from the Date of Grant set forth above.

   

  By the signature of Participant and the signature of the Company’s representative below, Participant and the Company agree that the Performance Share Units are granted under and governed by (i) this Notice and the Agreement and (ii) the Plan, a copy of which has been provided to Participant or made available for his review. 

   

  In addition, by his signature below, Participant confirms that the Company, its Affiliates and their assignees and successors shall be under no duty to ensure, and no representation or commitment is made, that an Award qualifies or shall qualify under any particular tax treatment. The Participant agrees that the Company, its Affiliates and their respective employees, directors, officers and shareholders shall not be liable for any tax, penalty, interest or cost incurred by Participant as a result of a determination that the Award does not qualify for any particular tax treatment, nor will any of them have any liability of any kind or nature in the event of such determination.

    

   

  							
	AMERICAN WELL CORPORATION
	  
	PARTICIPANT

	  
	  
	  

	By:
	  
	  
	By:
	  

	Name:
	Bradford F. Gay
	  
	Name:
	Roy Schoenberg

	Title:
	Senior Vice President and General Counsel
	  
	  
	  

    

  	 

   

   

  

   

  AMERICAN WELL CORPORATION

    

  PERFORMANCE SHARE UNIT AGREEMENT - INCORPORATED TERMS AND
CONDITIONS
 

    

  A.            Award of PSUs. American Well Corporation (the “Company”) hereby grants to the Participant (“Participant”) named in the Notice of Performance Share Unit Agreement (the “Notice of PSU Grant”), in consideration of Participant’s past and/or continued employment with or service to the Company or a Subsidiary and for other good and valuable consideration, effective as of the date of grant (the “Date of Grant”) set forth in the Notice of PSU Grant, a grant of the number of Performance Share Units (“PSUs”) as set forth in the Notice of PSU Grant, upon the terms and conditions set forth in the Company’s 2020 Equity Incentive Plan (the “Plan”), which is incorporated herein by reference, and this Agreement (including Exhibit A hereto), subject to adjustment as provided in Section 14 of the Plan.  Each PSU represents the right to receive one Share, at the times and subject to the conditions set forth herein.  However, unless and until the PSUs have become earned and vested, Participant will have no right to the issuance of any Shares subject thereto. Prior to the actual delivery of any Shares, the PSUs will represent an unsecured obligation of the Company, payable only from the general assets of the Company. Unless otherwise defined herein or in the Notice of PSU Grant, the terms defined in the Plan shall have the same defined meanings in this Performance Share Unit Agreement (the “Agreement”).

    

  B.        Vesting of PSUs.  Subject to Participant’s continued employment with the Company or a Subsidiary and the terms of this Agreement, the PSUs shall be eligible to be earned and vest in such amounts and at such times as are set forth the Notice of Grant, this Agreement, and Exhibit A attached hereto.  Participant shall immediately forfeit any and all PSUs that do not become vested under this Agreement following the expiration of the three-year performance period commencing on the Date of Grant and ending on the third anniversary of the Date of Grant (the “Performance Period”).

   

  C.        Distribution or Payment of PSUs.

    

  (1)         Participant’s earned and vested PSUs (if any) shall be distributed in Shares (either in book-entry form or otherwise) to the Participant as soon as administratively practicable following the vesting of the applicable PSU pursuant to this Agreement and Exhibit A and, in any event, within sixty (60) days following such vesting (for the avoidance of doubt, this deadline is intended to comply with the “short-term deferral” exemption from Section 409A).  Notwithstanding the foregoing, Participant shall be permitted to make an election to defer the distribution or payment of PSUs to such date as may be set forth in a valid election made by Participant in accordance with the provisions of Treasury Regulation Section 1.409A-2(a)(8).  Absent a deferral election made by Participant pursuant to the preceding sentence, the Company may delay a distribution or payment in settlement of PSUs only if it reasonably determines that such payment or distribution will violate federal securities laws or any other Applicable Law, provided that such distribution or payment shall be made at the earliest date at which the Company reasonably determines that the making of such distribution or payment will not cause such violation, as required by Treasury Regulation Section 1.409A-2(b)(7)(ii), and provided further that no payment or distribution shall be delayed under this Section (C)(1) if such delay will result in the PSUs becoming subject to or in a violation of Section 409A.

    

  (2)         All distributions made in Shares shall be made by the Company in the form of whole Shares.

                                  

  D.        Conditions to Issuance of Stock.  The Company shall not be required to issue or deliver any certificate or certificates for any Shares or to cause any Shares to be held in book-entry form prior to the fulfillment of any or all of the following conditions:  (a) the admission of the Shares to listing on all stock exchanges on which such Shares are then listed, (b) the completion of any registration or other qualification or exemption of the Shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or 

  	 

   

   

  

  advisable, (c) the obtaining of any approval or other clearance from any state or federal governmental agency that the Administrator shall, in its absolute discretion, determine to be necessary or advisable and (d) the receipt by the Company of any tax obligations due on issuance of such Shares, which may be in one or more of the forms of consideration permitted under Section (E)(1).

    

  E.                               Tax Obligations.

    

  (1)           The Company (or the Parent or Subsidiary employing or retaining Participant) has the authority to deduct or withhold, or require Participant to remit to the applicable employing entity, an amount sufficient to satisfy any applicable federal, state, local and foreign income and employment tax withholding requirements (including the employee portion of any FICA obligation) applicable to the issuance of Shares pursuant to the PSUs or with respect to any taxable event arising pursuant to this Agreement. The Company (or its Parent or Subsidiary, as applicable) may withhold, or if the Participant is subject to Section 16 of the Exchange Act, the Participant shall be permitted to instruct the Company to withhold, such payment in one or more of the following forms:

    

  (i)             by cash or check;

    

  (ii)   by electing to have withheld the net number of Shares otherwise issuable pursuant to the PSUs having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company (or its Parent or Subsidiary, as applicable) based on the maximum statutory withholding rates in Participant’s applicable jurisdictions for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such taxable income;

   

  (iii)     by tendering to the Company vested Shares held for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences and having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company (or its Parent or Subsidiary, as applicable) based on the maximum statutory withholding rates in Participant’s applicable jurisdictions for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such taxable income; or

    

  (iv)  selling a sufficient number of Shares otherwise deliverable to Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to satisfy such withholding taxes.  

    

  Participant acknowledges and agrees that the Company may refuse to deliver the Shares issuable with respect to the PSUs to, or cause any such Shares to be held in book-entry form by, Participant or his or her legal representative if such withholding amounts are not timely delivered in full pursuant to this Section (E)(1).

    

  (2)           Code Section 409A.  It is intended that the Award comply with the provisions of Code Section 409A, or satisfy the requirements for an exemption from Code Section 409A, and, accordingly, to the maximum extent permitted, this  Award  shall be interpreted and be administered in a manner to be in accordance therewith. If the parties in good faith believe that the Award is not in compliance with Code Section 409A, the parties shall in good faith attempt to amend this Agreement to comply with Section 409A while endeavoring to maintain the intended economic benefits hereunder. 

    

  (3)           Liability.  Participant is ultimately liable and responsible for all taxes owed in connection with the PSUs, regardless of any action the Company or any of its Parents or Subsidiaries  takes with respect to any tax withholding obligations that arise in connection with the PSUs.  Neither the Company nor any of its Parents or Subsidiaries makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or settlement of the PSUs or the subsequent sale of 

  	 

   

   

  

  Shares.  The Company and its Parents and Subsidiaries  do not commit and are under no obligation to structure the PSUs to reduce or eliminate Participant’s tax liability.

    

  F.           Rights as Stockholder.  Neither Participant nor any Person claiming under or through Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares (which may be in book-entry form) will have been issued and recorded on the records of the Company or its transfer agents or registrars and delivered to Participant (including through electronic delivery to a brokerage account).  Except as otherwise provided herein, after such issuance, recordation and delivery, Participant will have all the rights of a stockholder of the Company with respect to such Shares, provided, that, subject to Section 7 of Appendix A below, Participant shall not have the right to receive dividends, if any, with respect to the Shares.  

    

  G.          PSUs Not Transferable.  The PSUs may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares underlying the PSUs have been issued, and all restrictions applicable to such Shares have lapsed.  No PSUs or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.  Notwithstanding the foregoing, with the consent of the Administrator, the PSUs may be transferred to Permitted Transferees, pursuant to any such conditions and procedures the Administrator may require.

    

  H           Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan, the Notice of PSU Grant and this Agreement (including Exhibit A hereto) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, except as may otherwise be set forth in the Participant’s employment agreement or offer letter with the Company, and may not be modified adversely to the Participant’s interest except by means of a writing signed by the Company and Participant or as is otherwise permitted under the Plan. This Agreement is governed by the internal substantive laws but not the choice of law rules of State of Delaware.

    

  I.           No Guarantee of Continued Service. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF PSUS PURSUANT TO THE VESTING SCHEDULE HEREOF AND ISSUANCE OF SHARES PURSUANT THERETO IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

    

  J.           Administration. The Administrator shall have the power to interpret the Plan and this Agreement, and to adopt such rules for the administration, interpretation and application of the Plan and this Agreement as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator will be final and binding upon Participant, the Company and all other interested Persons. To the extent allowable pursuant to Applicable Law, no member of the Committee or the Board will be personally liable for any action, determination or interpretation made with respect to the Plan or this Agreement.

    

  	 

   

   

  

  K.          Adjustments. The Administrator may accelerate the vesting of all or a portion of the PSUs in such circumstances as it, in its sole discretion, may determine. Participant acknowledges that the PSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan, including Section 14 of the Plan.

    

  L.          Notices. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company’s principal office, and any notice to be given to Participant shall be addressed to Participant at Participant’s address set forth in the Notice of PSU Grant. By a notice given pursuant to this Section 1(L), either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service or the local equivalent. Subject to the limitations set forth in Section 232(e) of the General Corporation Law of the State of Delaware (the “DGCL”), Participant consents to the delivery of any notice to Participant given by the Company under the DGCL or the Company’s certificate of incorporation or bylaws by (i) facsimile telecommunication to the facsimile number for Participant in the Company’s records, (ii) electronic mail to the electronic mail address for Participant in the Company’s records, (iii) posting on an electronic network together with separate notice to Participant of such specific posting or (iv) any other form of electronic transmission (as defined in the DGCL) directed to Participant. This consent may be revoked by Participant by written notice to the Company and may be deemed revoked in the circumstances specified in Section 232 of the DGCL.

    

  M.         Conformity to Securities Laws. Participant acknowledges that the Plan and this Agreement are intended to conform, to the extent necessary, with all provisions of the Securities Act and the Exchange Act and any and all Applicable Law and regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the PSUs are granted, only in such a manner as to conform to such Applicable Law.

    

  N.          Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the PSUs and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

    

  O.          Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth in Section 1(G) and the Plan, this Agreement shall be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

    

  P.           Limitation on Participant’s Rights.  Participation in the Plan confers no rights or interests other than as herein provided.  This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust.  Neither the Plan nor any underlying program, in and of itself, has any assets.  Participant shall have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the PSUs.

   

   

           

    

   

  	 

   

   

  

  EXHIBIT A

   

  1.PSU Vesting in General. The PSUs may become earned based on the achievement during the Performance Period of certain market capitalization milestones of the Company over a rolling thirty trading-day period during the Performance Period as set forth below (the “Market Capitalization Milestones”), subject to the satisfaction of the Service Vesting Conditions set forth in Section 5 of this Exhibit A. Each Market Capitalization Milestone identified in the table shall represent a tranche (each a “Tranche”) of the number of PSUs that shall become earned if the Market Capitalization Milestone for such Tranche is achieved. The Market Capitalization Milestone with respect to any particular Tranche shall be achieved if the Thirty-Day Average Market Cap (as defined below) equals or exceeds the percentage of the Grant Date Market Cap (as defined below) for such Tranche as set forth in the table below (such date on which achievement of a Tranche occurs, a “Determination Date”). For the avoidance of doubt, the total number of PSUs set forth opposite each Tranche in the table below shall represent the cumulative achievement of the PSUs, and shall not be additive to the number of PSUs earned in respect of prior Tranches, such that the total number of shares of Common Stock that may be earned with respect to the PSUs will never exceed 7,500,000.

  				
	Tranche #
	% of Target PSUs Earned
	Total Number of PSUs
	Market Capitalization Milestone

	1
	50%
	500,000
	Thirty-Day Average Market Cap equals at least 133% of Grant Date Market Cap

	2
	100%
	1,000,000
	Thirty-Day Average Market Cap equals at least 167% of Grant Date Market Cap

	3
	225%
	2,250,000
	Thirty-Day Average Market Cap equals at least 200% of Grant Date Market Cap

	4
	350%
	3,500,000
	Thirty-Day Average Market Cap equals at least 233% of Grant Date Market Cap

	5
	475%
	4,750,000
	Thirty-Day Average Market Cap equals at least 267% of Grant Date Market Cap

	6
	600%
	6,000,000
	Thirty-Day Average Market Cap equals at least 300% of Grant Date Market Cap

	7
	675%
	6,750,000
	Thirty-Day Average Market Cap equals at least 400% of Grant Date Market Cap

	8
	750%
	7,500,000
	Thirty-Day Average Market Cap equals at least 500% of Grant Date Market Cap

	Total
	 
	7,500,000
	  

   

  For the avoidance of doubt, in no event will any of the PSUs become earned if the Market Capitalization Milestone for Tranche 1 is not achieved during the Performance Period. Each of the Tranches set forth above shall only be determined to be earned once the Market Capitalization Milestone for such Tranche is achieved (with no interpolation between Tranches).  To the extent that a Market Capitalization Milestone for a particular Tranche is achieved during the Performance Period, any unearned PSUs shall remain outstanding and eligible to become earned in the event that the Market Capitalization Milestone for a higher Tranche is achieved during the Performance Period. Any PSUs that remain unearned as of the last day of the Performance Period shall be immediately cancelled and forfeited.

  	 

   

   

  

  2.The Thirty-Day Average Market Cap.  The “Thirty-Day Average Market Cap,” as of any Determination Date, is determined as follows:

  (a)A “trading day” refers to a day on which the primary stock exchange or national market system on which the Shares are traded (e.g., the New York Stock Exchange (“NYSE”)) is open for trading;

  (b)The Company’s daily market capitalization for a particular trading day is equal to the product of (i) the total number of outstanding Shares as of the close of such trading day, as reported by the Company’s transfer agent, and (ii) the closing sales price per Share as of the close of such trading day, as reported by the NYSE (or other reliable source selected by the Administrator if NYSE is not reporting a closing sales price for that day) (such product, the “Daily Market Capitalization”); and

  (c)The “Thirty-Day Average Market Cap” is equal to (i) the sum of the Daily Market Capitalization of the Company for each trading day during any consecutive thirty (30) trading day period during the Performance Period, divided by (ii) the number of trading days during such period.

  3.Grant Date Market Cap.  The “Grant Date Market Cap” is equal to $822,885,046.

  4.Determination by the Administrator. The Administrator shall, periodically, assess whether the Market Capitalization Milestones has been achieved. The Administrator, in its sole, good faith discretion shall determine, approve and certify in writing that the requisite Market Capitalization Milestone for an applicable Tranche has been achieved (a “Certification”). For purposes of clarity, more than one Market Capitalization Milestone may be achieved simultaneously upon a Certification.  

  5.Service Vesting Conditions. The vesting of any earned PSUs shall be conditioned on the service requirements (the “Service Vesting Conditions”) set forth in this Section 5.  Vesting of earned PSUs, if any, shall occur on an annual basis at the end of each of the vesting periods from the Date of Grant to the first anniversary of the Date of Grant (the “First Vesting Period”), from the date immediately following the first anniversary of the Date of Grant to the second anniversary of the Date of Grant (the “Second Vesting Period”) and from the date immediately following the second anniversary of the Date of Grant to the third anniversary of the Date of Grant (the “Final Vesting Period”), as follows: 

                (A)  If the Market Capitalization Milestone for any Tranche is achieved during the First Vesting Period, such Tranche or Tranches shall vest in an aggregate amount of earned PSUs not to exceed the lesser of (i) the number of PSUs earned during the First Vesting Period and (ii) 1,500,000 Shares, subject to Participant’s continued Service (as defined below) through the last day of the First Vesting Period (the “First Vesting Date”), except as provided below. Any earned PSUs during the First Vesting Period which do not vest due to the limitations set forth above shall remain outstanding and be eligible to vest on the Second and/or Final Vesting Dates.

                 (B)  If the Market Capitalization Milestone for any Tranche is achieved during the Second  Vesting Period, such Tranche or Tranches shall vest in an aggregate amount of earned PSUs not to exceed the lesser of (i) the number of PSUs earned during the Second Vesting Period (including any PSUs earned during the First Vesting Period which did not vest upon the First Vesting Date due to the vesting limitations set forth in paragraph (A) above and vest pursuant to the next following sentence) and (ii) an additional 1,500,000 Shares (i.e., a total of 3,000,000 Shares when added to the permitted vesting of earned PSUs under paragraph (A) above), subject to Participant’s continued Service through the last day of the Second Period (the “Second Vesting Date”), except as provided below. Any Shares in excess of 1,500,000 Shares which underlie PSUs earned during the First Vesting Period which did not vest upon the First Vesting Date due to the vesting limitations set forth in paragraph (A) above shall be eligible to vest on the Second Vesting Date subject to the overall cumulative vesting limit of 3,000,000 Shares as of the Second Vesting Date.

  	 

   

   

  

                (C)  If the Market Capitalization Milestone for any Tranche is achieved during the Final Vesting Period, such Tranche or Tranches shall vest in an aggregate amount of earned PSUs not to exceed the lesser of (i) the number of PSUs earned during the Final Vesting Period (including any PSUs earned during the First Vesting Period and/or Second Vesting Period which did not vest upon the First Vesting Date or Second Vesting Date, as applicable, due to the vesting limitations set forth in paragraphs (A) and (B) above and vest pursuant to the next following sentence) and (ii) an additional 4,500,000 Shares (i.e., a total of 7,500,000 Shares when added to the permitted vesting of earned PSUs under paragraphs (A) and (B) above), subject to Participant’s continued Service through the last day of the Final Period (the “Final Vesting Date”), except as provided below. Any Shares in excess of 3,000,000 Shares which underlie PSUs earned during the First Vesting Period and/or Second Vesting Period and which did not vest upon either the First Vesting Date or the Second Vesting Date, as applicable, due to the vesting limitations set forth in paragraphs (A) and (B) above shall be eligible to vest on the Final Vesting Date, subject to the overall cumulative limit of 7,500,000 Shares as of the Final Vesting Date.

  If Participant’s Service to the Company and its Subsidiaries is terminated for any reason prior to the Final Vesting Date, any unvested PSUs shall immediately expire and be forfeited; provided that, notwithstanding the foregoing, in the event of Participant’s termination of Service to the Company and its Subsidiaries (i) by the Company without Cause, (ii) by Participant with Good Reason or (iii) due to Participant’s death or Disability (as such terms are defined in Participant’s Employment Agreement with the Company entered into as of June 18, 2020 and each, a “Good Leaver Termination”), then (i) any earned PSUs which have satisfied the applicable Market Capitalization Milestone shall immediately vest as of the termination date and (ii) any remaining unearned PSUs shall remain outstanding for a period of (A) 12 months following the termination date, if the termination of Service is due to death or Disability, or (B) 6 months following the termination date, if the termination of Service is by the Company without Cause or by Participant with Good Reason, in the case of each of clause (A) and clause (B), subject to the earlier expiration of the Performance Period (the “Tail Period”), and shall  become earned and vested subject to the achievement of any Market Capitalization Milestone during such Tail Period; provided, further, that any PSUs that do not vest during the Tail Period shall be immediately cancelled and forfeited following the expiration of the Tail Period.  

  Notwithstanding anything to the contrary in the Plan, Participant will be deemed to have a Termination of Service for purposes of this Agreement and the Plan if Participant ceases to be an employee of the Company and its Subsidiaries serving in a “C-suite” level role or higher and does not otherwise continue to provide services as Chairman of the Company or otherwise as a director with senior operational and/or executive functions for the Company or any of its affiliates or Subsidiaries or any of their successors or assigns as reasonably approved by the Committee (any such role, “Service”). 

  6.Change in Control. Notwithstanding anything to the contrary in this Exhibit A or the Agreement, in the event of a Change in Control (other than a Change in Control described in Section 2(g)(ii) of the Plan), the Market Capitalization Milestones shall be measured as of the effective time of the Change in Control (with such date being considered a Determination Date for purposes of this Exhibit A) based on the product of (A) the total number of outstanding Shares immediately prior to the effective time of such Change in Control, as reported by the Company’s transfer agent, and (B) the per Share price (plus the per Share value of any other consideration) received by the Company’s stockholders in the Change in Control (with such value determined in good faith by the Administrator in its sole discretion) (the “Change in Control Market Cap”), and any Tranche of PSUs that remains unearned as of immediately prior to the effective time of the Change in Control shall become earned to the extent that the Change in Control Market Cap equals or exceeds the applicable percentage of the Grant Date Market Cap Market for such Tranche as set forth in the table in Section 1 of this Exhibit A; provided that, for the avoidance of doubt, any Tranche of PSUs that is earned and remains unvested as of immediately prior to a Change in Control shall remain earned without regard to the Change in Control Market Cap and shall not be measured based on the Change in Control Market Cap. Any PSUs that are earned (or become earned in connection with this Section 6) and remain unvested as of the effective time of the Change in Control shall vest in full, subject to Participant’s continued employment with the Company or a Subsidiary through the date of such Change in Control or 

  	 

   

   

  

  occurrence of a Change in Control during the applicable Tail Period, and any other PSUs that remain unearned as of immediately following  the effective time of the Change in Control shall be treated in accordance with Section 14 of the Plan.

  7.Adjustment upon Corporate Transactions: The PSUs shall be subject to adjustment and modification as provided in Section 14 of the Plan in the event of capitalization adjustments of the Company or corporate transactions involving the Company.Exhibit 10.1

 

 

SETTLEMENT AGREEMENT AND RELEASE

 

This Settlement Agreement
and Release (together with any amendments, supplements, modifications, exhibits, and attachments as the same may be amended or supplemented
or modified from time to time is hereinafter referred to as the “Agreement”) is made and entered into as of the latest date
of execution by any of the parties below (the “Effective Date”) by and between VPR Brands, LP (“VPR”) on the one
hand and Myle Vape, Inc (“Myle”) and MVH I, INC. (“MVH I”) (Myle and MVH I are sometimes collectively referred
to herein as “MYLE”) on the other, as follows:

 

WHEREAS,
VPR named Myle and MVH I as Defendants in a complaint filed in the United States District Court for the Eastern District of New York captioned
VPR Brands, LP v. Myle Vape Inc. and MVH I, INC., Civil Action No. 1:21-cv-02445 (the “District Court Action”) seeking
damages in connection with the alleged infringement of VPR’s United States Patent No. 8,205,622 (the “Asserted Patent”);

 

WHEREAS, VPR alleges patent infringement
of the Asserted Patent which allegations MYLE denies and to which MYLE raises affirmative defenses and counterclaims of non- infringement,
invalidity and unenforceability of the Asserted Patent, among others;

 

WHEREAS, VPR desires to license
the Asserted Patent and any related patents and applications to MYLE, and MYLE desires to acquire a license to such intellectual property
as hereinafter provided;

 

WHEREAS, the Parties hereto are
both interested in resolving the claims (as defined below relating to the Asserted Patent that have been asserted or could be asserted
in the District Court Action or any other manner, action or proceeding in any venue and desire to document a mutually beneficial arrangement
which avoids further dispute;

 

WHEREAS, VPR and MYLE wish to
settle and compromise and resolve the Claims of the Asserted Patent that have been asserted or could be asserted in the District Court
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 the mutual covenants hereinafter contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby mutually acknowledged, the Parties agree as follows:

 

		1.	Recitals and Definitions.

 

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

 

		1.2	“Asserted Patent” shall have the meaning ascribed to such term in the Preamble.

 

		1.3	“Claims” shall have the meaning ascribed to such term in Section 5 herein.

 

    Page 1 of 11

     

    

 

		1.4	“District Court Action Claims” includes all claims asserted in the District Court Action,
any and all related claims (including cross-claims, counterclaims, third-party claims or fourth-party claims), actions, causes of action,
allegations, controversies, suits, rights, obligations, debts, demands, agreements, promises, liabilities, damages, and disputes of any
kind or nature, including but not limited to compensatory, punitive or exemplary damages, statutory damages, treble damages, claims for
indemnification, contribution, or statutory rights or violations, claims for interest, costs or attorneys’ fees, sanctions, judgements,
losses, charges, and complaints whatsoever, of every kind, nature and description, under any law of any jurisdiction, whether at law,
in equity or otherwise, whether based on statute, regulations, common law, civil law or any other type, form or right of action, and whether
foreseen or unforeseen, actual or potential, matured or unmatured, contingent or liquidated, known or unknown, or accrued or not accrued,
of every kind and nature.

 

		1.5	“SRIPLAW Trust Account” has the meaning ascribed to the term is Section 2 of this Agreement.

 

		1.6	“Subject Articles” means the Myle Mini Device identified in the District Court Action. For
the avoidance of doubt Subject Articles include the original Myle Mini, the Myle V4 and all predecessor configurations of the Myle V4,
the Myle Evo, the Myle Drip, the Myle Micro Square, the Myle Micro Bar and any future version of the Subject Articles as well as any products
contemplated now or in the future that may be owned by Myle and/or MVH I or any of their Affiliates.

 

		2.	Settlement Payment by MYLE.

 

		2.1	Each Party shall bear its own attorneys’ fees and costs
relating to the District Court Action, and each party waives any and all claims for monetary relief related to the District Court Action.
Notwithstanding the foregoing, MYLE shall pay VPR the sum of One Hundred and Twenty-Five Thousand ($125,000.00) (the “Settlement
Sum”) by wire transfer of immediately available funds in United States Dollars in two equal installments of Sixty-two Thousand
Five Hundred and No One-Hundredths Dollars ($62,500.00), the first such installment to be paid on or before August 12, 2022 and the second
such installment being paid on or before August 26, 2022. Payment shall be made by wire transfer to the SRIPLAW Trust Account which is
the trust account of SRip Law identified in correspondence of even date herewith identifying the wire transfer information to which payments
pursuant to this Section 2 shall be sent.

 

		2.2	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 the District
Court Action, including the preparation and drafting of this Agreement.

 

		2.3	Applicable tax reporting forms shall be issued with respect
to the Settlement Sum. VPR acknowledges and agrees that it will not seek or make any claim against Myle or its Affiliates for damages,
costs, interest, fees, assessments (whether by any federal or state court or any federal or state regulatory body) withholdings, penalties,
or other losses, related to taxes that may be owed on the Settlement Sum.

 

    Page 2 of 11

     

    

 

		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 Asserted Patent, and that no other Third Party owns
any right to recover for infringement of or to assert any rights in or under the Asserted 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 ’622 Patent or any related family members of this patent
(e.g. continuation, continuation-in-part patent applications or registrations) or otherwise that would conflict or prevent it from entering
into this Agreement.

 

		4.	Grant of Non-Exclusive License to MYLE; Assignment.

 

		4.1	Grant of Fully Paid-Up License. Upon receipt of the
entirety of the Settlement Sum, VPR hereby grants to MYLE a fully paid-up, royalty free, non-exclusive license to practice the invention
in the Asserted Patent and all related patents and applications, for the full term of the Asserted Patent including, without limitation,
the rights to make, have made, use, import, license, offer to sell, and sell the invention in the Asserted Patent and all related patents
and applications with respect to the Subject Articles and otherwise.

 

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

 

		4.3	Assignment by MYLE. MYLE 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 MYLE may assign its non-exclusive license to an acquirer of all or substantially
all of the equity or assets of MYLE’s businesses or the business units responsible for producing the Subject Articles to which
this Agreement relates or the surviving entity in any merger, consolidation, equity exchange, or reorganization of their businesses to
which this Agreement relates.

 

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

 

    Page 3 of 11

     

    

 

		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 now 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, principals,
attorneys, legal representatives, beneficiaries, trustees (both direct and contingent), accountants, representatives, insurers, indemnitors,
servants, employees, independent contractors, shareholders, members, and partners, and all persons and entities claiming by or through
them or on their behalf, whether by statute, rule, contract otherwise, hereinafter collectively referred to as the “Releasees”),
of and from the District Court Action Claims as well as 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,
or claims to have for, upon or by reason of any matter, cause or thing whatsoever, from the beginning of the world to the 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.

 

		6.	Dismissal of the District Court Action.

 

The Parties will submit to the Court,
upon receipt of the second payment provided for in Section 2 above and no later than August 15, 2022 unless such deadline is extended
by the Court, a stipulation of dismissal of the District Court Action, in the form attached hereto as Exhibit A, between VPR and Myle
in its entirety, with prejudice, including all claims and counterclaims, with each side to bear its own attorneys’ fees and costs.
See Exhibit A, Joint Stipulation of Dismissal with Prejudice. The Parties agree to execute any other papers that may be needed to complete
the dismissal of the District Court Action required by this Agreement and, subject to the arbitration provisions of Section 20 below,
the Parties agree that the United States District Court for the Eastern District of New York shall retain jurisdiction to enforce this
Agreement as per Section 7 below.

 

		7.	Governing Law and Venue.

 

This Agreement shall be governed by
the laws of the United States and the laws of the State of New York. The Parties agree that any suit, action, or other proceeding arising
out of, or in connection with this Agreement shall be brought in the U.S. District Court for the Eastern District of New York, 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 Eastern District of New York for such purpose. Prior to the institution of any suit, action or other proceeding as referred to above,
the Parties agree to seek arbitration pursuant to the provisions of Section 20 herein.

 

		8.	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.

 

    Page 4 of 11

     

    

 

		9.	Binding Effect and Parties Bound; Integration; Modification and Waiver; Construction.

 

		9.1	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.

 

		9.2	This Agreement constitutes an integration of the entire understanding
and agreement of the Parties with respect to the matters referred to in this Agreement. Any representation, warranty, promise or condition,
whether written or oral, between the Parties with respect to the matters referred to in this Agreement which is not specifically incorporated
in this Agreement shall not be binding upon any of the Parties hereto and the Parties acknowledge that they have not relied, in entering
into this Agreement, upon any representations, warranties, promises or conditions not specifically set forth in this Agreement. No prior
or contemporaneous oral or written understanding, covenant, or agreement between the Parties, with respect to the matters referred to
in this Agreement, shall survive the execution of this Agreement. Each Party hereto assumes the risk of mistake, and if any party should
subsequently discover that any fact relied upon in entering into this Agreement was untrue, or its understanding of the facts or law
was incorrect, it shall not be entitled to set aside this Agreement by reason thereof except for reason of misrepresentation of the representations,
warranties, and covenants as described in Sections 3 and 11 herein. This Agreement may be modified only by a written agreement executed
by both Parties hereto.

 

		9.3	Any modifications to this Agreement must be in writing and
signed by duly authorized representatives of each of the Parties and must be expressly state that it is the intention of each of the
Parties hereto to amend the Agreement. No breach of any provision of this Agreement shall be deemed waived unless the waiver is in writing
signed by a duly authorized representative of the waiving party. Waiver of any one breach shall not be deemed a waiver of any other breach
of the same or any other provision of this Agreement.

 

		9.4	Any waiver of a breach of this Agreement shall be in writing
and shall not be deemed to be a waiver of any successive breach.

 

		10.	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. The Parties further declare, covenant, and warrant that they or their representatives are over
the age of eighteen (18) years, and that they are not suffering from any legal, mental, or physical disabilities which would impair
or disable them from executing this Agreement and that there have been no representations and/or statements made by the Parties
hereto or their agents, employees, or representatives to influence the Parties in making or executing this Agreement.

 

    Page 5 of 11

     

    

 

		11.	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.

 

		12.	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.

 

		13.	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.

 

		14.	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. This Agreement shall be deemed to have been drafted jointly by the Parties to this Agreement.
Any uncertainty or ambiguity shall not be construed for or against any Party to this Agreement based on attribution of drafting.

 

		15.	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.

 

		16.	Amendments.

 

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

 

    Page 6 of 11

     

    

 

		17.	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

Chief Executive Officer

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 MYLE, notices shall be made to:

 

Ariel Gorelik

Chief Executive Officer

Myle Vape, Inc

695 Grand Avenue

Ridgefield, NJ 07657

 

with courtesy copy to:

 

Zanicorn Legal
PLLC

Attn: Mary Bielaska

845 Third Avenue 6th Floor

New York, New York
10022

Mary.bielaska@zanicorn.com

 

		18.	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.

 

    Page 7 of 11

     

    

 

		19.	Implementation of Agreement.

 

Each Party shall take any additional
action as may be reasonably requested by the other party to implement the terms and conditions of this Agreement.

 

		20.	Arbitration.

 

The Parties agree that any and all
disputes, claims, or causes of action, in law or equity, including but not limited to those arising and relating to this Agreement
or its interpretation, enforcement, breach or performance, shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C.
§1-16, and to the fullest extent permitted by law, by final, binding and confidential arbitration administered by American
Arbitration Association (“AAA”) or its successors by a single arbitrator. The arbitration will be held in New York, New
York, or such other location as then-agreed by the Parties. The Parties acknowledge that by agreeing to this arbitration
procedure, the Parties each waive the right to resolve any such dispute through a trial by jury or judge or administrative
proceeding, with the exception of any filing to enforce the provisions of this Agreement in accordance with Section 6 and Section 7
above.. Any such arbitration proceeding will be governed by AAA’s then applicable rules and procedures for employment
disputes, which will be provided to Employee upon request. In any such proceeding, the arbitrator shall: (a) have the
authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by
law; and (b) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a
statement of the award. The arbitrator shall have the sole and exclusive authority to determine whether a dispute, claim or cause of
action is subject to arbitration under this Agreement and to determine any procedural questions which grow out of such disputes,
claims, or causes of action and bear on their final disposition. The Parties shall be entitled to all rights and remedies that would
be entitled to pursue in a court of law. Nothing in this Agreement is intended to prevent either of the Parties from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration pursuant to applicable law.
The Parties shall each be responsible for paying their own filing fees and shall pay the arbitrator’s fees and any other fees
or costs unique to arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal
and state courts of any competent jurisdiction.

 

		21.	Confidentiality.

 

		21.1.	The Parties shall strictly maintain the confidentiality of
all terms and conditions of this Agreement, and not disclose any information relating to any and all of its terms and conditions (“the
Confidential Information”) to any person or entity, except as set forth below:

 

		21.1.1.	to their own members, shareholders, directors, officers,
attorneys, accountants, lending institutions, insurers, auditors and employees;

 

		21.1.2.	as may be required to taxing authorities;

 

    Page 8 of 11

     

    

 

		21.1.3.	as may be necessary to defend any lawsuit brought by or against
the Parties by any non-party or third party;

 

		21.1.4.	to the extent that such Confidential Information is required to be disclosed to satisfy reporting requirements
imposed by law, including but not limited to any disclosures required under any Federal securities laws, such as the public filing of
form 8-K with the Securities Exchange Commission. VPR and its accountants, lawyers and advisers are solely responsible for the determination,
in VPR’s discretion, if the Agreement and its terms must be disclosed to the Securities Exchange Commission; or

 

		21.1.5.	if ordered to do so by a court of competent jurisdiction
maintaining the confidentiality of this Agreement means that neither of the Parties or any related person or entity shall at any time
hereafter: (i) use, copy, disclose, discuss, refer to, reference, talk about, write about or publicize any Confidential Information,
(ii) issue or cooperate with any person or entity to make any oral, written, visual or electronic communications or publications, or
permit the issuance of any oral, written, visual or electronic releases relating to any Confidential Information, or (iii) in any manner
give out, deliver, make available or disseminate any Confidential Information to any person or business entity.

 

		21.2	In the event that disclosure of this Agreement is sought
by formal legal demand, either in the form of a court order, subpoena, or deposition notice, the Party from whom such disclosure is sought
shall provide the other Party prompt written notice with a true and complete copy of the demand and all exhibits or attachments thereto,
so that the Party may, at its own cost, seek to obtain the appropriate remedy in law or equity. In the event a Party seeks such relief,
it shall promptly notify the other Party. Unless otherwise required by operation of law, the Parties shall maintain the confidentiality
of this Agreement until the Court resolves such request for relief.

 

		21.3	Discussion with third parties in contravention of the confidentiality
provisions of this Agreement is expressly prohibited.

 

		21.4	The Parties acknowledge that the Defend Trade Secrets Act
(“DTSA”) provides for both civil and criminal immunity for employees who: (i) disclose trade secrets in confidence to the
government or its lawyers solely for the purposes of investigating a suspected violation of law; (ii) disclose trade secrets to their
personal attorneys in connection with a retaliation lawsuit for reporting a suspected violation of law; or (iii) disclose or use trade
secrets in any complaint or document filed in a lawsuit, as long as the trade secret information is filed under seal.

 

		22.	Declaration.

 

Each Party has executed this Agreement
freely and voluntarily after consulting with their own counsel. In settling this dispute, none of the Parties hereto admit or concede
the truth or any of the allegations contained in the pleadings herein or concede or acknowledge that they have any liability to one another
and are settling to avoid the cost and expense of further proceedings, and to bring finality to this matter. The Parties agree that the
Court shall maintain jurisdiction to enforce the provisions of this Agreement.

 

    Page 9 of 11

     

    

 

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

 

	 	VPR BRANDS, L.P.
	 	 
	Dated: 08/04/2022	By:	/s/ Kevin Frija
	 	Name: 	Kevin Frija
	 	Title:	CEO
	 	 	 
	 	MYLE VAPE, INC
	 	 	 
	Dated: 8/4/2022	By:	/s/ Ariel Gorelik
	 	Name:	Ariel Gorelik
	 	Title:	CEO
	 	 	 
	 	MVH I, INC.
	 	 	 
	Dated: 8/4/2022	By:	/s/ Ariel Gorelik
	 	Name:	Ariel Gorelik
	 	Title:	CEO

 

    Page 10 of 11

     

    

 

EXHIBIT A

 

UNITED STATES
DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

BROOKLYN DIVISION

 

	VPR BRANDS, LP,	 
	 	CASE NO.: 1:21-cv-02445
	Plaintiff,	 
	 	 
	v.	 
	 	 
	MYLE VAPE INC. AND MVH I, INC.,	 
	 	 
	Defendants.	 

 

STIPULATION OF DISMISSAL

 

Plaintiff VPR BRANDS,
LP and Defendants MYLE VAPE INC. AND MVH I, INC., by and through their undersigned counsel, and pursuant to Fed. R. Civ. P. 41(a)(1)(A)(ii),
hereby stipulate to the dismissal of the instant lawsuit, with prejudice, with each party to bear its own costs, attorneys’ fees
and expenses.

 

	Dated: August 4, 2022	 	Respectfully submitted,
	 	 	 
	/s/	 	/s/
	JOSEPH A. DUNNE	 	CLIFTON E. MCCANN
	joseph.dunne@sriplaw.com	 	Clifton.McCann@ThompsonHine.com
	ELIEZER LEKHT	 	 
	NY Bar Number: 5762497 	 	Thompson Hine LLP - D.C.
	eliezer.lekht@sriplaw.com	 	1919 M. Street N.W. 
	 	 	Suite 700
	SRIPLAW, P.A.	 	Washington, DC 20036-1600
	175 Pearl Street	 	(202) 263-4159 - Telephone
	Third Floor	 	(202) 331-8330 - Facsimile
	Brooklyn, NY 11201	 	 
	929.200.2474 – Telephone	 	 Counsel for Defendants Myle Vape Inc. and
    MVH I, INC.
	561.404.4353 – Facsimile	 	 
	 	 	 
	Counsel for Plaintiff VPR Brands, LP	 	 

 

 

Page 11 of 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]