Document:

EMPLOYMENT,
NON-COMPETITION

AND PROPRIETARY RIGHTS AGREEMENT

 

THIS EMPLOYMENT NON-COMPETITION
AND PROPRIETARY RIGHTS AGREEMENT (the “Agreement”) is made as of this 6th day of August, 2012, by and between Vitacost.Com,
Inc., a Delaware corporation (the “Company”), and Joseph R. Topper Jr. (the “Employee”).

 

RECITALS:

 

A.The Company is
engaged in the sale of nutritional supplements, vitamins, and other healthcare products;

 

B.The Company desires
to employ the Employee and Employee desires to be employed by the Company as its Chief Information and Technology Officer (Exempt-Professional),
subject to the terms, conditions and covenants hereinafter set forth; and

 

C.As a condition
of the Company employing the Employee, Employee has agreed not to divulge to the public the Company’s confidential information,
not to solicit the Company’s vendors, customers or employees and not to compete with the Company, all upon the terms and
conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the foregoing and the agreements, covenants and conditions set forth herein, the Employee and the Company hereby
agree as follows:

 

Article
I

EMPLOYMENT

 

1.1                      
Employment. The Company hereby employs, engages and hires Employee, and Employee hereby accepts employment,
as its Chief Information and Technology Officer upon the terms and conditions set forth in this Agreement. Employee reports to
the Company’s Chief Executive Officer, Jeffrey Horowitz. Employee’s responsibilities are outlined on the attached Exhibit
A.

 

1.2                      
Activities and Duties During Employment. Employee represents and warrants to the Company that Employee is
free to accept employment with the Company and that Employee has no prior or other commitments or obligations of any kind to anyone
else which would hinder or interfere with the acceptance and performance of the obligations under this Agreement.

 

Employee accepts the
employment described in Article I of this Agreement and agrees to devote his exclusive full time and efforts to the
faithful and diligent performance of the services described herein, including the performance of such other services and responsibilities
as the Company may, from time to time, stipulate. Notwithstanding the foregoing, Employee may: (i) serve on the board of directors
of other entities or serve in any capacity with any hobby, avocation, civic, educational, religious, professional or charitable
activity or organization provided that such service does not materially interfere or conflict with his duties hereunder; and (ii)
make and manage personal investments of his choice. Employee shall comply with and be bound by the Company’s operating policies,
procedures and practices in effect from time to time during the terms of his employment.

 

    	 

    	 

    

 

Article
II

TERM

 

2.1                      
Term. The term of employment under this Agreement shall be one (1) year, commencing as of the date of the
Agreement (such term of employment, as it may be extended or terminated, is herein referred to as the “Employment Term”),
which Employment Term shall automatically renew for additional one (1) year periods unless terminated by Employee or the Company
by written notice not less than thirty (30) days prior to expiration of the then-current term.

 

2.2                      
Termination. The Employment Term and Employment of Employee may be terminated as follows:

 

(a)               
Automatically, without the action of either party, upon the death of the Employee.

 

(b)              
By either party upon the Total Disability of the Employee. The Employee shall be considered to have a Total Disability
for purposes of this Agreement if he is unable by reason of accident or illness or mental disability to substantially perform his
employment duties, and is expected to be in such condition for periods totaling six (6) months (whether or not consecutive), during
any period of twelve (12) consecutive months. The determination of whether a Total Disability has occurred shall be based on the
determination of a physician selected by the Company. Nothing herein shall limit the Employee’s right to receive any payments
to which Employee may be entitled under any disability or employee benefit plan of the Company or under any disability or insurance
policy or plan. During a period of Total Disability prior to termination hereunder, Employee shall continue to receive his full
compensation (including base salary and bonus) and benefits.

 

(c)               
By the Employee upon thirty (30) days’ written notice to the Company.

 

(d)              
By the Company “Without Cause,” and without notice which shall mean a termination of the Employee’s
employment by the Company other than pursuant to the provisions of Section 2.2(a), Section 2.2(b) and Section 2.2(e)
hereof.

 

(e)               
By the Company for “Cause” (as defined below).

 

(f)               
By the Employee with Good Reason (as defined in Section 2.6(b) of this Agreement).”

 

2.3                      
Cessation of Rights and Obligations: Survival of Certain Provisions. On the date of expiration or earlier
termination of the Employment Term for any reason, all of the respective rights, duties, obligations and covenants of the parties,
as set forth herein, shall except as specifically provided herein to the contrary, cease and become of no further force or effect
as of the date of said termination, and shall only survive as expressly provided for herein.

 

    	 

    	 

    
 

 

2.4                      
Cessation of Compensation. In lieu of any severance under any severance plan that the Company may then have
in effect, and subject to: (i) the receipt of a full and unconditional release from Employee; and (ii) any amounts owed by the
Employee to the Company under any contract, agreement or loan document entered into after the date hereof (including, but not limited
to, loans made by the Company to the Employee), the Company shall pay to the Employee, and the Employee shall be entitled to receive,
the following amounts within thirty (30) days of the date of termination of his employment in full satisfaction of any obligation
to Employee for termination of this Agreement:

 

(a)               
Voluntary Termination/Termination For Cause/Expiration of Term. Upon: (i) termination of the Employee’s
employment pursuant to Sections 2.2(c) or (e); or (ii) the expiration of the Employment Term because the Employee elects
not to extend the Employment Term, Employee shall be entitled to receive his base salary, bonus, benefits and expense reimbursements
solely through the date of termination.

 

(b)              
Death or Total Disability. Upon the termination of the Employment Term by reason of the death or Total Disability
of the Employee, the Employee (or, in the case of death, his estate) shall be entitled to receive in a lump sum his base salary
through the date of death plus ninety (90) days, or date of determination of Total Disability plus one hundred eighty (180) days
(which shall include any of his unused vacation pay), unpaid bonus (if any) based on the portion of the calendar year through the
date the Employment Term ends hereunder based on the annual bonus, if any, paid in the immediately preceding calendar year and
expense reimbursement through the date of death or Total Disability.

 

(c)               
Without Cause. If Employee’s employment is terminated Without Cause or with Good Reason, Employee will
be entitled to receive payment of severance benefits equal to amount to six (6) months’ Base Salary (subject to any applicable
tax withholding) plus the portion of Employee's bonus earned if any based on the percentage of the calendar year through
the date of termination of employment, multiplied by the bonus earned by the Employee in the immediate preceding calendar year.
Payment will be made in a lump sum not more than thirty (30) days following the date of termination.

 

Provided that Employee makes a timely election
to continue coverage under the Company’s group health plans pursuant to the Consolidated Omnibus Budget Reconciliation Act
of 1985 (“COBRA”), health insurance benefits with the same coverage (subject to Company’s right to change coverage
as set forth in the last sentence of this Section) provided to Employee prior to the termination (e.g. medical, dental, optical,
mental health) will be provided at the Company’s cost price to the Employee at the expense of the Employee for eighteen (18)
months following the termination date, but not longer than until Employee is covered by comparable health insurance benefits from
another employer or is otherwise ineligible for COBRA continuation coverage. Nothing in this Section 2.4(c) shall restrict
the ability of the Company or its successor from changing some or all of the terms of such health insurance benefits, the cost
to participants or other features of such benefits; provided, however, that all similarly situated participants are treated the
same.

 

2.5                      
Business Expenses.

 

(a)               
Reimbursement. The Company shall reimburse the Employee for all reasonable, ordinary, and necessary business
expenses incurred by him in connection with the performance of his duties hereunder, including, but not limited to, ordinary and
necessary travel expenses and entertainment expenses. The reimbursement of business expenses will be governed by the policies for
the Company and the terms otherwise set forth herein.

 

    	 

    	 

    

 

(b)              
Accounting. The Employee shall provide the Company with an accounting of his expenses, which accounting shall
clearly reflect which expenses were incurred for proper business purposes in accordance with the policies adopted by the Company
and as such are reimbursable by the Company. The Employee shall provide the Company with such other supporting documentation and
other substantiation of reimbursable expenses as will conform to Internal Revenue Service or other requirements. All such reimbursements
shall be payable by the Company to the Employee within a reasonable time after receipt by the Company of appropriate documentation
therefore.

 

2.6                      
Definitions. For purposes of this Agreement, the following definitions will apply:

 

(a)               
“Cause” for Employee’s termination will exist if the Company terminates Employee’s employment
for any of the following reasons: (i) Employee willfully fails to substantially perform his duties hereunder (other than any such
failure due to his physical or mental illness), and such willful failure is not remedied within forty five (45) days after written
notice from the Company’s Chief Executive Officer, which written notice shall state that failure to remedy such conduct may
results in an involuntary termination for Cause; (ii) Employee engages in willful and serious misconduct (including, but not limited
to, an act of fraud or embezzlement) that has caused or is reasonably expected to result in material injury to the Company or any
of its Affiliates; (iii) Employee is convicted of or enters a plea of guilty or nolo contendere to a: (A) crime that materially
adversely affects his ability to perform his duties on behalf of the Company; or (B) felony; (iv) Employee engages in alcohol or
substance abuse which adversely affects his ability to perform his duties; or (v) Employee willfully breaches any of his obligations
hereunder or under any other agreement between herself and the Company, and such willful breach is not remedied within forty five
(45) after written notice from the Company’s Chief Executive Officer, which written notice shall state that failure to remedy
such conduct may result in an involuntary termination for Cause.

 

(b)              
“Good Reason” for Employee’s termination of employment will be deemed to exist if any of the following
occurs: (i) a material diminution in the Employee’s base compensation; (ii) a material diminution in the Employee’s
authority, duties, or responsibilities; (iii) a material change in the executive level of the party to whom the Employee is required
to report; (iv) a material change in the geographic location at which the Employee must perform the services under this Agreement;
or (v) any other action or inaction that constitutes a material breach by the Company of this Agreement or any other agreement
between the Company and the Employee. For purposes of these Agreements, Good Reason shall not be deemed to exist unless the Employee’s
termination of employment for Good Reason occurs within one (1) year following the initial existence of one of the conditions specified
in clauses (i) through (v) above, the Employee provides the Company with written notice of the existence of such condition within
90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt
of such notice.”

 

    	 

    	 

    

 

(c)               
“Change in Control” means any of the following:

 

(i) The acquisition
by any person of Beneficial Ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of more
than fifty percent (50%) of either (A) the then outstanding shares of common stock of the Company (the “Outstanding Company
Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to
vote generally in the election of directors (the “Outstanding Company Voting Securities”) (the foregoing Beneficial
Ownership hereinafter being referred to as a "Controlling Interest"); provided, however, that for purposes of
this definition, the following acquisitions shall not constitute or result in a Change of Control: (x) any acquisition by the Company;
(y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary of
the Company; or (z) any acquisition by any corporation pursuant to a transaction which complies with clauses (A) and (B) of subsection
(iii) below; or

 

(ii) During
any period of two (2) consecutive years (not including any period prior to the Commencement Date) individuals who constitute the
Company’s board of directors on the Commencement Date (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Company’s board of directors; provided, however, that any individual becoming a director
subsequent to the Commencement Date whose election, or nomination for election by the Company’s shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs
as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a person other than the Company’s board of directors; or

 

(iii) Consummation
of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or
any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition
of assets or stock of another entity by the Company or any of its subsidiaries (each a “Business Combination”),
in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were
the Beneficial Owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the then outstanding
shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation,
a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior
to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may
be, and (B) at least a majority of the members of the Board of Directors of the corporation resulting from such Business Combination
were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Company’s
board of directors, providing for such Business Combination; or approval by the shareholders of the Company of a complete liquidation
or dissolution of the Company.

 

    	 

    	 

    

 

2.7                      
Change in Control of the Company. If the Employee’s employment is terminated by the Company Without
Cause pursuant to Section 2.2(d) hereof or by the Employee for Good Reason pursuant to Section 2.2(f) hereof, in
either case during the twelve (12) month period immediately following the Change in Control, then in lieu of any amounts otherwise
payable under Section 2.4(c) hereof, the Employee shall be entitled to the following:

 

(i)payment
of (a) any accrued yet unpaid base salary through the date of termination, (b) any accrued yet unpaid bonus payable on account
of any calendar year ending prior to the year in which the termination occurs, (c) benefits through the date of termination, (d)
reimbursement of reimbursable expenses incurred prior to the date of termination, and (e) any vacation pay on account of unused
vacation accruing prior to the date of termination; and

 

(ii)a severance amount equal to 6 months at his then current
base salary plus the pro rata portion of the Employee’s earned bonus based upon the percentage of the calendar year through
the date of termination, which severance amount shall be paid in a lump sum within ten days following the termination of employment
(subject to applicable withholding and employment taxes)

 

 

 

2.8                      
Compensation. During Employee’s employment, the Company shall pay Employee such salary, bonus and other
benefits and awards as set forth on Exhibit B.

 

2.9                      
Payment. Except as otherwise provided herein, all compensation shall be payable in intervals in accordance
with the general payroll payment practice of the Company. The compensation shall be subject to such withholdings and deductions
by the Company as are required by law.

 

2.10                  
Vacation. The Employee shall be entitled to receive personal time off (“PTO”) as outlined in the
company’s Employee Handbook.

 

2.11                  
Relocation. To assist the Employee in meeting the extraordinary expense of moving and relocation and as a
further inducement to accept employment, the Company shall pay the Employee Fifty Thousand Dollars ($50,000) net of taxes. In consideration
for this sum, Employee agrees to remain in the employ of the Company for a period of twelve (12) months. In the event that the
Employee does not remain in the employ of the Company as a full-time employee for the full twelve-month period, the Employee will
repay such relocation expenses, provided however, that the Company will prorate, on a monthly basis, the amount for repayment so
that each month during with the Employee remained employed by the Company, the amount for repayment is reduced by one-twelfth (1/12)
of the total reimbursement. The Company, in its sole discretion, may waive such repayment if the Employee is separated for reason
beyond the Employee’s control.

 

2.12                  
Other Benefits. Employee shall be entitled to participate in any retirement, pension, profit-sharing, stock
option, health plan, insurance, disability income, incentive compensation and welfare or any other benefit plan or plans of the
Company which may now or hereafter be in effect and for which the Employee is eligible or for which all senior executives in general
are eligible. Notwithstanding the forgoing, the Company shall be under no obligation to institute or continue the existence of
any such benefit plan.

 

    	 

    	 

    

 

Article
III

CONFIDENTIALITY, NON-SOLICITATION, NON-COMPETE

AND QUIT CLAIM AGREEMENT

 

3.1                      
Non-Disclosure of Confidential Information. Employee hereby acknowledges and agrees that, as of a result of
the employment hereunder, Employee will acquire, develop, and use information that is not generally known to the public or to the
Company’s industry, including but not limited to, certain records, phone locations, documentation, software programs, price
lists, customer lists, contract prices for the Company’s services, business plans and prospects of the Company, equipment
configurations, ledgers and general information, employee records, mailing lists, manufacturing techniques, product formulations,
accounts receivable and payable ledgers, financial and other records of the Company or its affiliates, and other similar matters,
as well as any information disclosed to the Company by any third party under which the Company has a confidentiality obligation
to the third party (all such information pertaining to the Company, its affiliates or disclosed to Company under confidentiality
from third parties being hereinafter referred to as “Confidential Information”). Employee further acknowledges and
agrees that the Confidential Information is of great value to the Company and its affiliates and that the restrictions and agreements
contained in this Agreement are reasonably necessary to protect the Confidential Information and the goodwill of the Company. Accordingly,
Employee hereby agrees that:

 

(a)               
Employee will not, while employed by the Company or for two years thereafter, directly or indirectly, except in connection
with Employee’s performance of the duties under this Agreement, or as otherwise authorized in writing by the Company for
the benefit of the Company or its “Affiliates” (as hereinafter defined), divulge to any person, firm, corporation,
limited liability company, or organization, other than the Company or its Affiliates (hereinafter referred to as “Third Parties”),
or use or cause or authorize any Third Parties to use, the Confidential Information, except as required by law; and

 

(b)              
Upon the termination of Employee’s employment for any reason whatsoever, Employee shall deliver or cause to
be delivered to the Company any and all Confidential Information, including drawings, notebooks, notes, records, keys, disks data
and other documents and materials belonging to the Company or its Affiliates which is in his possession or under his control relating
to the Company or its Affiliates or abstracts therefrom, regardless of the medium upon which it is stored, and will deliver to
the Company upon such termination of employment any other property of the Company or its Affiliates which is in his possession
or control.

 

3.2                      
Non-Solicitation Covenant. Employee hereby covenants and agrees that while employed by the Company and for
a period of two (2) years following the termination of the Employee’s employment with the Company for any reason, Employee
shall not: (i) directly or indirectly, endeavor to entice away from the Company or its Affiliates any person, firm, corporation,
limited liability company or other entity that was a customer of the Company at any time while Employee was an employee of the
Company or its Affiliates or who is a “prospective vendor or customer” of the Company; or (ii) induce, attempt to induce
or hire any employee (or any person who was an employee during the year preceding the date of any solicitation) of the Company
or its Affiliates to leave the employ of the Company or its Affiliates or to otherwise perform services directly or indirectly
for others, or in any way interfere with the relationship between any such employee and the Company or its Affiliates. For purposes
hereof, “prospective vendor or customer” shall mean any person or entity which has been solicited for business by Employee
or any officer or other employee of the Company or its Affiliates at any time during Employee’s employment.

 

    	 

    	 

    
 

3.3                      
Non-Competition Covenant. Employee acknowledges that the covenants set forth in this Section 3.3
are reasonable. Employee also acknowledges that the enforcement of the covenants set forth in this Section 3.3 will
not preclude Employee from being gainfully employed in such manner and to the extent as to provide a standard of living for herself,
the members of his family and the others dependent upon him of at least the level to which he and they have become accustomed and
may expect. Employee hereby agrees that he shall not, during his employment and for a period of one (1) year after the end of his
employment directly or indirectly, engage in any proprietorship, partnership, firms trust, company, limited liability company or
other entity, other than the Company (whether as owner, partner, trustee, beneficiary, stockholder, member, officer, director,
employee, independent contractor, agent, servant, consultant, manager, lessor, lessee, or otherwise) that competes with the Company
in the Business of the Company in the Restricted Territory (as defined herein), other than acquiring an ownership interest in a
company listed on a recognized Stock exchange in an amount which does not exceed five percent (5%) of the outstanding Stock of
such corporation. For purposes of this Agreement: (i) the term “Business of the Company” shall include all business
activities and ventures related to the sale of nutritional supplements, online and/or mail order sales vitamins and other healthcare
products in which the Company is engaged, and all other businesses in which the Company subsequently is engaged in prior to, and
on the date of, termination of Employee’s employment; and (ii) the term “Restricted Territory” means any state
in the United States of America.

 

3.4                      
Remedies.

 

(a)               
Injunctive Relief. Employee expressly acknowledges and agrees that a violation of any of the provisions of
Sections 3.1, 3.2 or 3.3 could cause immediate and irreparable harm, loss and damage to the Company not adequately
compensable by a monetary award. Employee further acknowledges and agrees that the time periods and territorial areas provided
for herein are reasonable in order to adequately protect the Business of the Company, the enjoyment of the Confidential Information
and the goodwill of the Company. Without limiting any of the other remedies available to the Company at law or in equity, or the
Company’s right or ability to collect money damages, Employee agrees that any actual or threatened violation of any of the
provisions of Sections 3.1, 3.2, or 3.3 may be immediately restrained or enjoined by any court of competent jurisdiction,
injunction may be issued in any court of competent jurisdiction, without notice and without bond. Notwithstanding anything to the
contrary contained in this Agreement, the provisions of this Article III shall survive the termination of Employee’s
employment.

 

(b)              
Enforcement: It is the desire of the parties that the provisions of Sections 3.1, 3.2, or 3.3
be enforced to the fullest extent permissible under the laws and public policies in each jurisdiction in which enforcement might
be sought. Accordingly, if any particular portion of Sections 3.1, 3.2 or 3.3 shall ever be adjudicated as invalid
or unenforceable, or if the application thereof to any party or circumstance shall be adjudicated to be prohibited by or invalidated
by such laws or public policies, such section or sections shall be: (i) deemed amended to delete there from such portions so adjudicated;
or (ii) modified as determined appropriate by such a court, such deletions or modifications to apply only with respect to the operation
of such section or sections in the particular jurisdictions so adjudicating on the parties and under the circumstances as to which
so adjudicated.

 

    	 

    	 

    

 

(c)               
Legal Fees. In any action to enforce the terms of this Agreement, the prevailing party shall be entitled to
reimbursement from the other party of reasonable legal fees and costs.

 

3.5                      
Company. All references to the Company in this Article III shall include “Affiliates”
of the Company, as that term is construed under Rule 405 of the Securities Act of 1933, as amended.

 

Article
IV

MISCELLANEOUS

 

4.1                      
Notices. All notices or other communications required or permitted hereunder shall be in writing addressed
to the last known address of the Party entitled to notice and shall be deemed given, delivered and received: (a) when delivered,
if delivered personally; (b) four (4) days after mailing, when sent by registered or certified mail, return receipt requested and
postage prepaid; (c) one (1) business day after delivery to a private courier service, when delivered to a private courier service
providing documented overnight service; and (d) on the date of delivery if delivered by telecopy, receipt confirmed, provided that
a confirmation copy is sent on the next business day by first class mail, postage prepaid, in each case addressed as follows:

 

	To Employee at:	The address set forth on the signature page hereof.
	 	 
	To Company at:	
        Vitacost.com Inc.

        5400 Broken Sound Blvd NW

        Suite 500

        Boca Raton, FL 33487

        Attention:Mary Marbach

        Telephone:561-982-4180

        E-Mail:Mary.Marbach@vitacost.com

	 	 

 

Any party may change its address for purposes
of this paragraph by giving the other party written notice of the new address in the manner set forth above.

 

4.2                      
Entire Agreement; Amendments, Etc. This Agreement contains the entire agreement and understanding of the parties
hereto, and supersedes all prior agreements and understandings relating to the subject matter hereof. No modification, amendment,
waiver or alteration of this Agreement or any provision or term hereof shall in any event be effective unless the same shall be
in writing, executed by both parties hereto, and any waiver so given shall be effective only in the specific instance and for the
specific purpose for which given.

 

4.3                      
Benefit. This Agreement shall be binding upon, and inure to the benefit of, and shall be enforceable by, the
heirs, successors, legal representatives and permitted assignees of Employee and the successors, assignees and transferees of the
Company. This Agreement or any right or interest hereunder may not be assigned by Employee without the prior written consent of
the Company.

 

    	 

    	 

    

 

4.4                      
No Waiver. No failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder
or pursuant hereto shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy
preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder or pursuant thereto.

 

4.5                      
Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law but, if any provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provision of this Agreement. If any part of any covenant is unenforceable or the making of any
covenant hereunder is unenforceable, the parties hereto agree, and it is their desire, that the court shall substitute a judicially
enforceable limitation in its place, and that as so modified this Agreement, as so modified, shall be binding upon the parties
as if originally set forth herein.

 

4.6                      
Compliance and Headings. Time is of the essence of this Agreement. The headings in this Agreement are intended
to be for convenience and reference only, and shall not define or limit the scope, extent or intent or otherwise affect the meaning
of any portion hereof.

 

4.7                      
Arbitration. If there is any dispute between the parties concerning any matter relating to this Agreement,
the exclusive basis for adjudication of this Agreement (except with respect to the performance of the covenants and obligations
as set forth in Article III above) shall be by arbitration as detailed herein. Either party may submit the dispute
to binding arbitration. Any such arbitration proceeding will be conducted in Palm Beach, Florida and except as otherwise provided
in this Agreement, will be conducted under the auspices of JAMS/Mediation, Inc., in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association. The arbitrator shall allow such discovery as the arbitrator determines
appropriate under the circumstances. The arbitrator shall determine which party, if either, prevailed and shall award the prevailing
party its costs. Each party will bear its respective attorneys’ fees. The award and decision of the arbitrator shall be conclusive
and binding on all parties to this Agreement and judgment on the award may be entered in any court of competent jurisdiction. The
parties acknowledge and agree that any arbitration award may be enforced against either or both of them in a court of competent
jurisdiction and each waives any right to contest the validity or enforceability of such award. The parties further agree to be
bound by the provisions of any statute of limitations which would be applicable in a court of law to the controversy or claim which
is the subject of any arbitration proceeding initiated under the Agreement. The parties further agree that they are entitled in
any arbitration proceeding to the entry of an order, by a court of competent jurisdiction pursuant to an opinion of the arbitrator,
for specific performance of any of the requirements of this Agreement.

 

In any action to enforce
any of the provisions of Article III hereof, the action shall be litigated in the state or federal courts situated
in Palm Beach County, to which jurisdiction and venue all parties consent. Each party hereby waives its right to trial by jury
with respect to such action and agrees that the prevailing party such action shall be entitled to reimbursement from the other
party of its legal fees and costs incurred in connection with such actions. Company shall be entitled to injunctive relief, without
the necessity of posting bond to remedy any breach of any of the terms of Article III of this Agreement by Employee.

 

4.8                   
Governing Law. The parties agree that this Agreement shall be governed by, interpreted and construed in accordance
with the laws of the State of Florida.

 

4.9                    
Counterparts. This Agreement may be executed in one or more counterparts, whether by original, photocopy,
facsimile or e-mail attachment in PDF format, each of which will be deemed an original and all of which together will constitute
one and the same instrument.

 

4.10                  
Recitals. The Recitals set forth above are hereby incorporated in and made a part of this Agreement by this
reference.

 

4.11                  
Indemnification. The Company shall indemnify and hold Employee harmless to the fullest extent permitted by
law and under the Articles and bylaws of the Company as, to and from any and all costs, expenses (including reasonable attorneys’
fees, which shall be paid in advance by the Company, subject to recoupment in accordance with applicable law) or damages incurred
by Employee as a result of any claim, suit, action or judgment arising out of the activities of the Company or its Affiliates or
the Employee’s activities as an employee, officer or director of the Company or any related company; provided, however that
the Employee shall not be entitled to indemnification hereunder to the extent the damages are the result of actions or omissions
which have been finally adjudicated by a court of competent jurisdiction to constitute gross negligence or willful or intentional
misconduct by the Employee. This provision shall survive the termination of this Agreement.

 

4.12                  
Survival. Employee’s obligations under Article III hereof shall survive any termination
of this Agreement.

 

    	 

    	 

    

 

 

 

	COMPANY:	 	EMPLOYEE:
	 	 	 
	Vitacost.com, Inc.	 	 
	 	 	 
	 	 	 
	By:	Jeffrey J. Horowitz	 	Joseph R. Topper Jr.
	 	Jeffrey J. Horowitz	 	Joseph R. Topper Jr.
	 	Chief Executive Officer	 	 
	 	 	 	 
	 	 	 	 
	 	 	 
	 	 	Employee Owned Inventions:	none
	 	 	 	 	 	 

 

 

    	 

    	 

    
 

 

Exhibit A

 

 

 

As may be determined by Company.

 

 

    	 

    	 

    

 

Exhibit B

 

Start date is to be August 6, 2012 Agreement (the “Start
Date”)

 

Salary as of the Start Date is $275,000 per annum ($5,288.46
per week).

 

Performance based bonus equal to 50% of base salary in 2012,
which shall be paid pro rata based on the Start Date

 

A recommendation will be made to the Board of Directors to
grant you 300,000 incentive stock options which shall vest over 5 years at 20% per year. Such grant shall only be made upon the
approval of such grant by our Board of Directors.Exhibit 10.02

 

 

 

May 25, 2012

Greg Ahearn

 

[REDACTED]

 

Dear Greg,

 

We are pleased to offer you a full-time exempt position as Chief
Marketing Officer at LeapFrog Enterprises, Inc. (the “Company”). As Chief Marketing Officer you will be an executive
vice president and responsible for leading the following teams: marketing (including product marketing, advertising and PR); worldwide
content creation and production; studio operations; licensing; and consumer insights and research. Your start date will be July
16th or a date to be mutually agreed upon. This offer is contingent upon approval from the LeapFrog Board of Directors.
You will be based out of our Emeryville office at 6401 Hollis Street. This offer of employment is also contingent upon relocating
your permanent residence to the San Francisco Bay Area by July 1st, 2013. You will report directly to John Barbour,
CEO.

 

LeapFrog offers an exciting challenge for
professional and personal growth in a company with a demonstrated commitment to market leadership and excellence. LeapFrog offers
a compensation package to reflect our belief in rewarding performance appropriately:

 

		·	Your annual base salary will be $525,000 less standard payroll deductions and tax withholdings.

 

		·	You will be eligible to receive a discretionary annual bonus; your target bonus opportunity level
will be 75% of your annual base salary. The bonus is based upon the company's attainment of financial goals and achievement
of individual goals and objectives and is subject to your continued employment during the applicable period. Your 2012 bonus is
guaranteed at a minimum of the target bonus level of 75% of your full annual salary. You will also be eligible to participate,
on a prorated basis, in an additional bonus opportunity if the company attainment of financial goals is above the stated targets
as outlined in the 2012 Bonus Plan.

 

 

    	 

    	 

    

 

		·	Stock
Options: We will recommend that the Compensation Committee of the Board of Directors approve the grant of an option to you for
the purchase of 300,000 shares of the Company’s Class A Common Stock. All stock options are subject to approval by the Compensation
Committee and/or the Board of Directors, the terms of the equity plan and the individual grant. The option shall have an exercise
price equal to the closing fair market value of the Common Stock on the date of the grant. The option shall vest over a four year
period, or until your employment ends, as follows:

		o	Twenty-five (25%) of the shares subject to the option at twelve (12) months after the hire date,
and

		o	1/36 of the remaining shares subject to the option each month thereafter, for thirty six (36) consecutive
months.

 

		·	Restricted Stock Units: We will recommend that the Compensation Committee of the Board of Directors
approve the grant of 100,000 restricted stock units. All stock grants are subject to the terms of the equity plan and the individual
grant. The restricted stock shall vest over a four year period, or until your employment ends, with 25% of the grant vesting on
the first four annual anniversaries of your hire date.

 

In addition, you will become eligible for
the following benefits in accordance with Company policy currently in effect:

 

		·	Group health and 401(k) benefits. The effective date for medical, dental and vision insurance and
the 401(k) is upon date of hire.

 

		·	Accrual of four weeks of vacation per year.

 

		·	Relocation package. You will receive the relocation benefits set forth in the Executive Homeowner
Plan package, a copy of which is enclosed (the “Executive Homeowner Plan”), with the following additional benefit levels.

 

		o	Home Marketing Assistance – If you sell your current primary residence in New Jersey within
two (2) years of your first day of employment at the Company, the Company will pay standard closing costs on the sale of such home,
including any real estate transfer taxes, title fees and customary real estate broker commissions.

 

		o	Home Finding at New Location – Company will reimburse you for the reasonable hotel expenses,
coach airfare from New Jersey, meals and transportation incurred by you and your family for three (3) weekend house-hunting trips
to the San Francisco Bay Area.

 

		o	Shipping Household Goods, Temporary Living Expenses, Duplicate Housing – Company will provide
these services for 90 days with the flexibility to a maximum of 120 days as needed.

 

If you voluntarily terminate
employment, other than a Good Reason Resignation as defined in Appendix A, within 24 (twenty four) months from the effective date
of your move, you will be required to refund all or part of the relocation monies spent by the Company. 

 

 

    	2

    	 

    

 

		·	In addition, you will receive a monthly housing/travel subsidy of $12,500 beginning with the first
payroll following your start date. The travel/housing subsidy will end following 12 monthly installments. The travel/housing subsidy
shall be subject to applicable tax withholding.

 

You will be eligible for severance as described
in Appendix A to this letter.

 

If you join the Company, the Company will
reimburse you for all legal fees actually and reasonably incurred by you in connection with the negotiation, review and finalization
of this offer letter, up to a maximum total reimbursement amount of $5,000.

 

The compensation
and insurance benefits programs outlined in this letter may be modified by the Company at its discretion from time to time, and
acceptance of this offer does not create a contractual obligation to continue your employment in the future. The Company may also
change your position, duties, and work location at its discretion from time to time as it deems necessary. You will be employed
“at will” by the Company and are subject to termination at any time, with or without cause or advance notice. You will
also retain the right to terminate your employment at any time for any reason, with or without advance notice. Your employment
will be subject to all of the Company policies as in effect from time to time. The employment at-will relationship may not be modified
except in writing signed by the Chief Executive Officer of the Company. The provisions of this paragraph will not be construed
as limiting or otherwise modifying any severance terms described in Appendix A to this letter.

 

As a LeapFrog employee, you will be expected
to abide by all Company rules and regulations, including LeapFrog's Code of Business Conduct
and Ethics, and, as a condition of employment, you will be required to read and sign an Employee Acknowledgement when you
begin your employment with the Company. This offer of employment is contingent upon your submission and completion of I-9 documentation
and a signed Employee Proprietary Information and Inventions Agreement along with the successful completion of any background and
reference checks.

 

On your first day, please bring with you
two forms of I-9 acceptable documentation, as well as a voided check (if you would like direct deposit for your paycheck).

 

In addition, you will receive a separate
packet with the following forms that must be turned in your first day to be approved for your photo I.D. badge:

 

		·	Employment Eligibility Verification (I-9)

		·	W-4 Federal Tax Exemption Form

		·	Voluntary Self-Identification

		·	Employee Information Sheet

		·	Direct Deposit Authorization Form

		·	Employee Proprietary Information and Inventions Agreement

Please read and sign the acknowledgement
on page 4. 

Complete Exhibit B on last
page and sign.

		·	Code of Business Conduct

Please sign and return the
acknowledgement page only.

 

    	3

    	 

    

 

		·	Computer, Internet, E-mail Use Policy

		·	Employee Conduct Policy

		·	Sexual Harassment Policy

		·	Information Security Policy

Please sign and return the
acknowledgement page only.

		·	Agreement to Arbitrate Optional

 

You will not be given a photo badge until
you successfully complete the above documents. This badge will give you access between suites as well as to our parking garage
for free parking.

 

This offer is valid through July 11th,
2012, and a signed copy of this offer letter must be returned to my office by such date. The additional copy should be retained
for your records. This letter, together with your Employee Proprietary Information and Inventions Agreement, forms the complete
and exclusive statement of your employment relationship with the Company. The employment terms in this letter supersede any other
agreements or promises made to you by anyone, whether oral or written. If you have any questions regarding our offer, please contact
Saydeah Howard at [REDACTED] or via confidential fax at [REDACTED].

 

If you wish to change your start date to
a date other than July 16th, please indicate the new date below. Please ensure you communicate your start date to Human
Resources as soon as decided. 

 

We are looking forward to establishing
a mutually rewarding relationship with you and welcome your contribution to our company.

 

Sincerely,

 

/s/ John Barbour

 

John Barbour

CEO

 

By signing below, you represent that you
have read and agree to the terms of the above offer and agree to start your employment with LeapFrog on July 16th, 2012.
In addition, you represent that you are not subject to any agreement, judgment, order, or restriction which would be violated by
your being employed with the Company or that in any way restricts your ability to perform services for the Company.

 

	Signature:	/s/ Gregory B. Ahearn	 	Date:	May 31, 2012
	 	 	 	 
	Print Name:	Greg Ahearn	 	Start Date: June 18, 2012

 

 

    	4

    	 

    

 

Appendix A

 

Severance 

 

Severance Provisions.

 

In the event of your
Covered Termination, you shall be entitled to receive cash severance benefits equal to the following: (i) twelve (12) months of
Base Salary (the “Base Severance”), (ii) a payment equal to the prorated amount of your annual bonus at target
(as the target bonus is set forth in this offer letter or under the terms of the applicable bonus program for the calendar year
in which your Covered Termination occurs, as such agreement or program may be in effect at the time of such Covered Termination)
for the calendar year in which the Covered Termination occurs (Subsection (ii) is referred to as the “Pro-Rated Bonus Severance”),
and (iii) a payment equal to your annual bonus at target (as the target bonus is set forth in this offer letter or under the
terms of the applicable bonus program for the calendar year in which your Covered Termination occurs, as such agreement or program
may be in effect at the time of such Covered Termination) (Subsection (iii) is referred to as the “Full-Year Bonus Severance”).
In the event of your Covered Termination, you shall also be credited with one (1) year of additional employment service toward
vesting of your options and restricted stock units, and restricted stock units will treated for purposes of this provision as if
vesting occurred on a monthly basis. If a Covered Termination occurs at a time when the bonus for the prior calendar year has not
been paid, your Pro-Rated Bonus Severance shall be equal to (1) the bonus that would otherwise be payable for such prior calendar
year, as determined under the terms applicable to such bonus (including the timing of its determination) plus (2) the amounts described
above in Subsection (ii) for the calendar year in which the Covered Termination occurs. The foregoing severance is intended to
provide you with compensation for the period following a Covered Termination.

 

Provided that you elect
continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”),
the Company shall pay the full amount of premiums for your group medical, dental and vision coverage, including coverage for your
eligible dependents, through the earlier of (i) twelve (12) months following the Covered Termination (the “Severance Period”)
or (ii) the date that you become eligible for group health coverage through a subsequent employer. You must notify the Company
immediately if you become eligible to be covered by a group medical, dental or vision insurance plan of a subsequent employer.
No provision of this letter will affect the continuation coverage rules under COBRA except that the Company’s payment of
any applicable insurance premiums will be credited as payment by you for purposes of your payment required under COBRA. Therefore,
the period during which you may elect whether or not to continue the Company’s group medical, dental or vision coverage under
COBRA, the length of time during which COBRA continuation coverage will be made available to you, and all your other rights and
obligations under COBRA will be applied in the same manner that such rules would apply in the absence of this provision.

 

    	1

    	 

    

 

Upon the occurrence of
a Change in Control (i) the vesting and exercisability of all outstanding options to purchase the Company’s stock you then
hold shall be accelerated in full as of the date the Change in Control occurs, and (ii) all other stock awards that you then hold
shall vest in full, and any reacquisition or repurchase rights held by the Company with respect to such stock awards shall lapse.
Any such options shall remain exercisable by you until the period provided by the agreements evidencing such options, but in no
event beyond the expiration date of such options.

 

Payment Timing.

 

Any cash severance benefits
provided under this letter shall be paid in equal bi-monthly installments paid over the number of months in the Severance Period
on the Company’s regularly scheduled payroll periods, with such payment(s) occurring or commencing on the Release Date, subject
to the following paragraph and your delivery of the release described below. In no event shall payment of any severance benefit
be made prior to the effective date of your Covered Termination or prior to the effective date of the release described below.

 

409A Matters.

 

Cash severance payments
and vesting acceleration benefits, to the extent paid or provided from the date of the Covered Termination through March 15 of
the calendar year following the Covered Termination, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2)
of the Treasury Regulations and thus payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4)
of the Treasury Regulations. To the extent such payments or benefits are made or provided following said March 15, they are intended
to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination
from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by
such provision, with any excess amount being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the
Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six
(6) months after separation from service if you are a “specified employee” within the meaning of Section 409A(a)(2)(B)(i)
of the Code at the time of such separation from service. To the extent you are entitled to an excess amount described in the preceding
sentence, such amount will not be paid or payments will not commence until the sixtieth (60th) day following the Covered Termination,
or, if later, such time as required by Section 409A(a)(2)(B)(i) of the Code.

 

Release Requirement.

 

In order to be eligible
to receive Severance benefits you must execute a general waiver and release in form acceptable to the Company, and the release
must become effective in accordance with its terms not later than sixty (60) days following the date of the Covered Termination
(the sixtieth day, the “Release Date”).

 

    	2

    	 

    

 

Termination of
Benefits.

 

The benefits set forth
under this Appendix A shall terminate immediately if you, at any time, (i) violate any proprietary information or confidentiality
obligation to the Company or (ii) disparage the Company, its affiliated, related, parent or subsidiary
corporations, or its or their present or former directors, officers, employees, attorneys or agents in any manner likely to be
harmful to them or their business, business reputation or personal reputation, provided that you may respond accurately and fully
to any question, inquiry or request for information when required by legal process.

 

Payment Limits.

 

If any payment or benefit
you would receive in connection with a Change in Control or otherwise (“Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed
by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount.

 

The “Reduced Amount”
shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise
Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all
applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable
marginal rate), results in your receipt, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all
or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute
payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order; reduction
of cash payments; cancellation of accelerated vesting of stock options; reduction of employee benefits. In the event that acceleration
of vesting of stock options is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date
of grant of such options (i.e., earliest granted option cancelled last) unless you elect in writing a different order for
cancellation.

 

The accounting firm engaged
by the Company for general audit purposes as of the day prior to the effective date of the Change in Control shall perform the
foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, the Company shall appoint a nationally recognized accounting firm to make the
determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm
required to be made hereunder.

 

The accounting firm engaged
to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company
and to you within fifteen (15) calendar days after the date on which your right to a Payment is triggered (if requested at that
time by the Company or you) or such other time as requested by the Company or you. If the accounting firm determines that no Excise
Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company
and you with an opinion reasonably acceptable to you that no Excise Tax will be imposed with respect to such Payment. Any good
faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and you.

 

    	3

    	 

    

 

Definitions.

 

“Cause” means any of the following
has occurred, as reasonably determined by the Company in good faith:

 

(i)     you are
indicted for or convicted of any felony or crime involving moral turpitude or dishonesty;

 

(ii)     you
participate in any fraud against the Company or any of its subsidiaries;

 

(iii)    you
materially breach any material provision of a written agreement with the Company or any of its subsidiaries (including, without
limitation, the Proprietary Information and Inventions Agreement) or of a written policy of the Company or any of its subsidiaries,
provided that, if such breach is reasonably susceptible of cure, you fail to cure such breach within a reasonable period of time
(to be determined by the Company in its sole discretion) after receiving notice of such breach from the Company;

 

(iv)     you
engage in conduct that demonstrates unfitness to serve; or

 

(v)     you breach
your duties to the Company or any of its subsidiaries, including, without limitation, persistent unsatisfactory performance of
job duties.

 

“Change in Control” means
the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

 

(i)     any Exchange
Act Person (as defined in the Company’s 2011 Equity Incentive Plan) (other than Larry Ellison, Michael Milken, Lowell Milken,
or any combination of the foregoing), becomes the owner, directly or indirectly, of securities of the Company representing more
than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of
a merger, consolidation or similar transaction;

 

(ii)     there
is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after
the consummation of such merger, consolidation, or similar transaction, the stockholders of the Company immediately prior thereto
do not own, directly or indirectly, outstanding voting securities representing more than fifty percent (50%) of the combined voting
power of the surviving entity in such merger, consolidation or similar transaction or more than fifty percent (50%) of the combined
outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction;

 

(iii)    the
stockholders of the Company approve or the Company’s Board of Directors approves a plan of complete dissolution or liquidation
of the Company; or

 

    	4

    	 

    

 

(iv)     there
is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company
and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets
of the Company and its Subsidiaries to an entity, more than fifty percent (50%) of the combined voting power of the voting securities
of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately
prior to such sale, lease, license, or other disposition.

 

“Change in Control
Period” means the period beginning three (3) months before and ending twelve (12) months after a Change in Control.

 

“Covered Termination”
means (i) a termination by the Company and its subsidiaries without Cause or (ii) your Good Reason Resignation.

 

“Good Reason Resignation” means
your voluntary termination of employment within sixty (60) days after the occurrence of one of the following events without your
consent:

 

(i)     a material
diminution in your authority, duties, or responsibilities;

 

(ii)     a reduction
in your Base Salary in an amount greater than ten percent (10%) of your Base Salary prior to such reduction;

 

(iii)     a change
in the geographic location of your workplace by more than fifty (50) miles from its previous location; or

 

(iv)     a reduction
in your target bonus in an amount greater than ten percent (10%) of the target bonus set forth your offer letter; or

 

(v)     a material
breach by the Company and its subsidiaries of the agreement under which you are employed.

 

Prior to any Good Reason
Resignation, you must provide written notice to the Company of the existence of the Good Reason event within thirty (30) days following
the initial existence of the event, and the Company shall have a period of thirty (30) days following such notice to cure the event.
If the event is cured within such time period, you shall not be entitled to terminate his or her employment pursuant to a Good
Reason Resignation.

 

    	5

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