Exhibit 10.2


 


EMPLOYMENT AGREEMENT


 


THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is made and entered into on the date(s) set forth on the signature page hereto, but to
be effective for all purposes as of May 31, 2013 (the “Effective Date”), by and between GRAY FOX PETROLEUM CORP.,
a Nevada corporation (the “Company”), and LAWRENCE PEMBLE (“Executive”). Certain capitalized terms
used herein but not otherwise defined shall have the meanings as set forth in Section 13 of this Agreement.


 


WITNESSETH: 


 


WHEREAS, the
Company and Executive desire to enter into an agreement setting forth the terms and conditions of Executive’s employment
with the Company.


 


NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants, agreements and understandings contained herein, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:


 


1.          Employment.
The Company shall employ Executive, and Executive hereby accepts employment with the Company, upon the terms and conditions
set forth in this Agreement for the period beginning on the Effective Date and ending as provided in Section 4 hereof (the “Employment
Period”).


 


2.          Position and Duties.


 


(a)          During
the Employment Period, Executive shall serve as the President and Chief Executive Officer of the Company, and shall have the
normal duties, responsibilities and authority of such offices.


 


(b)          Executive
shall devote Executive’s reasonable best efforts and substantially all of Executive’s business time and attention
(except for permitted vacation periods, reasonable periods of illness or other incapacity, and reasonable time for participation
in charitable or professional affiliation organizations) to the business and affairs of the Company and its Affiliates. Executive
shall perform Executive’s duties and responsibilities to the best of Executive’s abilities in a diligent, trustworthy,
businesslike and efficient manner. Executive shall comply with all Company policies and procedures and all applicable local, state,
and federal laws.


 


3.          Base Salary; Benefits and Bonuses.


 


(a)          During the Employment
Period, Executive’s base salary shall be One Hundred Twenty Thousand Dollars ($120,000) per annum (the “Base
Salary”), which salary shall be payable in regular installments in accordance with the Company’s general payroll
practices as may be in effect from time to time. The Base Salary shall be subject to deduction and withholding authorized or
required by applicable law. In addition, during the Employment Period, Executive shall be entitled to receive such
perquisites and fringe benefits and participate in all of the Company’s employee benefit programs and/or plans for
which senior executive employees of the Company are generally eligible in accordance with the policies of the Company in
effect from time to time.


 






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(b)               Executive
shall be entitled to receive three million (3,000,000) shares of the Common Stock, $0.001 par value, of the Company (the
“Common Stock”) during the Employment Period. One Million (1,000,000) shares of Common Stock shall vest on each
one-year anniversary of the Effective Date, commencing in 2014 and shall be fully vested on the third anniversary of the
Effective Date in 2016. Executive acknowledges and agrees that the Common Stock will not be registered under the Securities
Act of 1933, as amended, and will carry a restrictive legend to the effect that the shares of Common Stock may not be
transferred absent such registration or pursuant to an exemption from registration. On each one-year anniversary of the
Effective Date for three years, the Company will deliver to Executive a stock certificate representing 1,000,000 shares
of Common Stock that have vested as of such date. Executive agrees to execute and deliver such other documentation requested
by the Company, including but not limited to a Subscription Agreement, necessary or desirable in connection with the issuance
of the Common Stock. Executive must be employed by the Company on each anniversary date to receive shares and shall not be
eligible to receive a pro-rate amount of shares in the event he is employed less than the full year preceding each
anniversary date.


 


(c)          The
Company shall reimburse Executive for all reasonable expenses incurred by Executive in the course of performing
Executive’s duties under this Agreement, which are consistent with the Company’s policies in effect from time to
time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with
respect to reporting and documentation of such expenses.


 


(d)          The
Executive shall have (14) days of Personal Time Off during each Fiscal Year. The Personal Time Off may be used for
vacation, sick leave, or for personal business. The Executive’s compensation will be paid in full during his use of his
Personal Time Off. The amount of Personal Time Off will be prorated for any portion of a Fiscal Year (or Fiscal Years of less
than twelve (12) months) during which Executive is employed under this Agreement.


 


4.          Term; Termination.


 


(a)          The Employment Period shall
end on the third (3rd) anniversary of the Effective Date; provided, that, (i) the Employment Period shall
terminate immediately upon Executive’s death, resignation (which must be accompanied by at least sixty (60) days’
prior written notice) or Disability, (ii) the Employment Period may be terminated by the Company at any time prior to such
date for Cause or without Cause (any such termination without Cause must be accompanied by at least sixty (60) days’
prior written notice, and the Company may require Executive not to perform his duties hereunder or enter Company premises
during the period prior to the date that any such termination without Cause becomes effective), and (iii) the Employment
Period may be terminated by Executive at any time for Good Reason or for any reason (with at least sixty (60) days’
prior written notice); provided further that, in the event the Company wishes to terminate the Employment Period for
Cause solely based on events described in clauses (iii) and/or (ix) of the definition of “Cause”, the Company
shall provide Executive with written notice of such intention and such termination shall not become effective until the sixth
(6th) day after such notice is delivered to Executive (provided that the Company shall be permitted to withdraw such notice
at any time prior to such sixth (6th) day, and provided further that the Company may require Executive not to perform
his duties hereunder or enter Company premises during the period prior to the date that such termination becomes effective); provided
further that, in the event Executive wishes to terminate the Employment Period for Good Reason based on events described
in clause (ii) of the definition of “Good Reason”, Executive shall provide the Company with written notice of
such intention and such termination shall not become effective until the sixth (6th) day after such notice is delivered to the
Company (provided that Executive shall be permitted to withdraw such notice at any time prior to such sixth (6th) day). At
the end of the initial term, this Agreement shall automatically renew for additional one (1) year terms, unless either party
provides notice of non-renewal at least sixty (60) days prior to the expiration of such initial term or any renewal term.


 






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(b)          Upon
a termination of the Employment Period, other than a termination prior to the end of the Employment Period by the Company without
Cause or by the Executive within thirty (30) days of the occurrence of Good Reason, all future compensation or bonuses to which
Executive would otherwise be entitled and all future benefits for which Executive would otherwise be eligible shall cease and
terminate as of the date of such termination; provided, that Executive shall receive any salary earned through the date
of termination, payable pursuant to the Company’s general payroll practices as may be in effect from time to time and subject
to deduction and withholding authorized or required by applicable law.


 


(c)          Upon
a termination of Executive’s employment prior to the end of the Employment Period by the Company without Cause or by
Executive within thirty (30) days of the occurrence of Good Reason, the Company shall pay and/or provide Executive, in
consideration of Executive’s continuing obligations hereunder after such termination (including, without limitation,
Executive’s non-competition obligations), an amount equal to Executive’s then current Base Salary for a period of (3) months,
payable bi-weekly and otherwise pursuant to the Company’s regular payroll policies. The payments described above shall
be subject to Executive’s execution and delivery to the Company within 30 days of the date of termination an executed
Separation Agreement and General Release in a form approved by the Company.


 


(d)          The
parties agree that the obligations created in Sections 5, 6, 8, 12, 15, and 16 of this Agreement will survive the termination
of Executive’s employment with the Company.


 


5.          Confidential
Information. The Company will provide Executive with confidential and proprietary information concerning the business and
affairs of the Company and its Affiliates, and Executive acknowledges that such information, along with other data and
observations obtained by Executive while employed by the Company (prior to or after the date hereof) (“Confidential
Information”) shall be the property of the Company or such Affiliate. Therefore, Executive agrees that Executive shall
not disclose to any unauthorized person or use for Executive’s own purposes any Confidential Information without the
prior written consent of the Board, unless and to the extent that (a) the aforementioned matters become generally known to
and available for use by the public other than as a result of Executive’s acts or omissions, or (b) the disclosure of
Confidential- Information is made in response to a valid order of a court or other governmental body, or was otherwise
required by law. Executive shall deliver to the Company at the termination of the Employment Period, or at any other time the
Company may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and software and other
documents and data (and copies thereof) relating to the Confidential Information, Work Product (as defined below) or the
business of the Company or any Affiliate which Executive may then possess or have under Executive’s control.


 






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6.          Inventions
and Patents. Executive acknowledges that all inventions, innovations, improvements, developments, methods,- designs, analyses,
drawings, reports and all similar or related information (whether or not patentable) which relate to the Company’s or any
of its Affiliates’ actual or anticipated business, research and development or existing or future products or services and
which are conceived, developed or made by Executive while employed by the Company and its Affiliates (“Work Product”)
belong to the Company or such Affiliate. Executive shall promptly disclose such Work Product to the Board and perform all actions
reasonably requested by the Board (whether during or after the Employment Period) to establish and confirm such ownership (including,
without limitation, assignments, consents, powers of attorney and other instruments).


 


7.          Intentionally Deleted.


 


8.          Enforcement. If, at the time of enforcement of Sections 5 or 6 of this Agreement, a court holds that the restrictions
stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical
area reasonable under such circumstances shall be substituted for the stated period, scope or area. Because Executive’s services
are unique and because Executive has access to Confidential Information and Work Product, the parties hereto agree that money damages
would not be an adequate remedy for any breach of this Agreement. Therefore, in the event a breach or threatened breach of this
Agreement, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor, apply
to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent
any violations of, the provisions hereof (without posting a bond or other security). Executive agrees that the restrictions contained
in Sections 5, 6 and 8 of this Agreement are reasonable.


 


9.          Withholding.
The Company and its Affiliates shall be entitled to deduct or withhold from any amounts owing from the Company or any of its
Affiliates to Executive under this Agreement between the Company and any of its Affiliates, on the one hand, and Executive
and any of his Affiliates, on the other hand, any United States federal, state or local or non-United States withholding
taxes, excise taxes or employment taxes (collectively, “Taxes”) imposed with respect to
Executive’s compensation or other payments from the Company or any of its Affiliates under this Agreement (including
wages and bonuses). In the event that the Company or any of its Affiliates incorrectly makes or fails to make such deductions
or withholdings, (a) Executive shall, within thirty (30) calendar days after receipt of a reasonably detailed written notice
from the Company, reimburse the Company and its Affiliates for any such amounts paid by the Company with respect to Taxes
attributable to Executive but not deducted or withheld from Executive by the Company and (b) the Company and its Affiliates
shall, within thirty (30) calendar days after the Company determines that it has incorrectly made any deduction or
withholding, pay to the Executive any amounts deducted or withheld from Executive in excess of the Taxes attributable to
Executive (to the extent such amounts have not been paid to a government authority).


 






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10.         Insurance.
The Company or any of its Affiliates may, at its discretion, apply for and procure in its own name and for its own benefit
life and/or disability insurance on Executive in any amount or amounts considered advisable. Executive agrees to cooperate in
any medical or other examination, supply any information and execute and deliver any applications or other instruments in
writing as may be reasonably necessary to obtain and constitute such insurance.


 


11.         Corporate
Opportunities. During the Employment Period, Executive shall submit to the Board all business, commercial and investment
opportunities or offers presented to Executive or of which the Executive becomes aware which relate to the Company’s
business at any time during the Employment Period.


 


12.         Executive’s
Cooperation. During the Employment Period and at any time thereafter, Executive shall, at reasonable times and with due
regard for his other obligations, cooperate with the Company and its Affiliates in any internal investigation, any
administrative, regulatory or judicial proceeding or any dispute with a third Person as reasonably requested by the Company
or any of its Affiliates (including Executive being available to the Company and its Affiliates upon reasonable notice for
interviews and factual investigations, appearing at the Company’s or any of its Affiliates’ request to give
testimony without requiring service of a subpoena or other legal process, volunteering to the Company and its Affiliates all
pertinent information and turning over to the Company and its Affiliates all relevant documents which are or may come into
the Executive’s possession, all at times and on schedules that are reasonably consistent with the Executive’s
other permitted activities and commitments). Following the termination or expiration of the Employment Period, if the Company
or any of its Affiliates requires the Executive’s cooperation in accordance with this Section 12, the Company or such
Affiliate shall reimburse Executive solely for reasonable travel expenses (including lodging and meals) upon submission of
receipts, and the Company shall pay to Executive a fee equal to Two Hundred Dollars ($200) per hour for Executive’s
time spent in connection with such matters.


 


13.         Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below:


 


“Affiliate”
means, with respect to any Person, any other Person controlling, controlled by, or under common control with such Person. For purposes
of this Agreement, the term “control” (including, with correlative meanings, the terms “controlled by”
and “under common control with” as used with respect to any Person) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of such Person whether through ownership of voting securities,
by contract or otherwise.


 






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“Board”
means the board of directors or managers, as the case may be, of the Company.


 


“Cause”
means, with respect to Executive, one or more of the following, in each case as determined by the Board in good faith: (i)
Executive is formally charged by a governmental agency or authority with a felony or other crime involving moral turpitude (not
including a felony or other crime based upon the operation of a motor vehicle while under the influence of alcohol), (ii) an intentional
act or omission by Executive involving dishonesty or fraud with respect to the Company or any of its Affiliates or any of their
customers or suppliers; (iii) failure to perform material duties as lawfully directed by the Board which is not cured to the Board’s
reasonable satisfaction within five (5) days after written notice thereof to Executive; (iv) any act or omission aiding or abetting
a competitor, supplier or customer of the Company or any of its Affiliates to the material disadvantage or detriment of the Company
and/or its Affiliates; (v) breach of fiduciary duty which results in material harm to the Company; (vi) gross negligence or willful
misconduct with respect to the Company or any of its Affiliates (which, in the case of gross negligence, results in material harm
to the Company); (vii) continued or repeated absence from the workplace, unless such absence is (A) in compliance with this Agreement,
Company policy or approved or excused by the Board or (B) is the result of Executive’s illness or Disability; (viii) continued
abuse of alcohol or illegal drugs (whether or not at the workplace) or other repeated conduct causing the Company or its Affiliates
substantial public disgrace or disrepute or substantial economic harm; or (ix) any other material breach of this Agreement which
is not cured to the Board’s reasonable satisfaction within five (5) days after written notice thereof to Executive.


 


“Disability”
means Executive’s inability, due to illness, accident, injury, physical or mental incapacity or other disability, to carry
out effectively Executive’s duties and obligations to the Company or to participate effectively and actively in the management
of the Company for a period of at least ninety (90) consecutive days or for shorter periods aggregating thirty (30) business days
(whether or not consecutive) during consecutive three (3) month periods, as determined by an independent physician.


 


“Fiscal Year” means the fiscal
year of the Company.


 


“Good Reason”
means the occurrence of any of the following events without Executive’s express written consent:


 


(i)         The
assignment to Executive by the Board of any duties or responsibilities which are materially inconsistent with
Executive’s position as Chief Executive Officer, or a material reduction in the duties and responsibilities previously
exercised by Executive, or a loss of the title of Chief Executive Officer, except in connection with the termination of his
employment for Cause or Disability, or as a result of Executive’s death;


 


(ii)        Any
material breach by Company of any provision of this Agreement which is not cured to the Executive’s reasonable
satisfaction within five (5) days after written notice thereof has been provided to the Board; or


 






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(iii)       A required permanent relocation by Company of Executive to a location which is more than fifty (50) miles outside Dallas, Texas.


 


The expiration of the Employment
Period or the termination of the Employment Period for Cause shall preclude Executive’s resignation with Good Reason.


 


“Person” means
any natural person, corporation, partnership, limited liability company, trust, unincorporated organization or other entity.


 


14.         Notices.
Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class
mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the addresses
indicated below:


 





	If to Executive:	Lawrence Pemble
	 	3824 Cedar Springs Road
	 	Apt #749, Dallas, Texas 75219
	 	 
	If to the Company:	Gray Fox Petroleum Corp.
	 	3333 Lee Parkway, Suite 600
	 	Dallas, Texas 75219
	 	Attn: Lawrence Pemble
	 	 
	with a copy (which shall not constitute notice to the Company) to:
	 	 
	 	Hallett & Perrin, P.C.
	 	1445 Ross Ave.,
	 	Suite 2400
	 	Dallas, Texas 75202




 


or such other address or to the attention
of such other person as the recipient party shall have specified by prior written notice to the sending party. Any notice under
this Agreement shall be deemed to have been given when so personally delivered or sent by overnight courier service or, if mailed,
five (5) days after deposit in the U.S. mail.


 


15.         Non-disparagement.
The Executive agrees and promises that, during the term of and after the termination of this Agreement (regardless of whether
the Executive is terminated with or without Cause, voluntarily resigns or otherwise), not to make any libelous, disparaging
or otherwise injurious statements about or concerning the Company, its officers, employees or representatives. Such
prohibited statements include any statement that is injurious to the business or business reputation of the Company, its
Affiliates or their employees or representatives. Nothing herein shall prevent Executive or the Company from complying with
applicable law or orders.


 


16.         Waiver
of Right to Jury Trial. NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT, THE EXECUTIVE SHALL, AND HEREBY DOES, IRREVOCABLY
WAIVE THE RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY DISPUTE, CONTROVERSY, CLAIM, OR CAUSE OF ACTION ARISING OUT OF OR RELATING
TO THE EXECUTIVE’S EMPLOYMENT WITH THE COMPANY, THE TERMINATION OF THAT EMPLOYMENT, OR THIS AGREEMENT (EITHER ALLEGED BREACH
OR ENFORCEMENT).


 






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17.         General Provisions.


 


(a)         Severability.
Whenever 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 is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other
provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if
such invalid, illegal or unenforceable provision had never been contained herein.


 


(b)         Complete
Agreement. This Agreement, those documents expressly referred to herein and other documents of even date herewith embody
the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.


 


(c)         Counterparts.
This Agreement may be signed in one or more counterparts, each of which once signed shall be deemed to be an original. All
such counterparts together shall constitute one and the same instrument. Notwithstanding the date of execution of any
counterpart, each counterpart shall be deemed to bear the effective date first written above. This Agreement, any and all
agreements and instruments executed and delivered in accordance herewith, along with any amendments hereto or thereto, to the
extent signed and delivered by means of a facsimile machine or other means of electronic transmission, shall be treated in
all manner and respects and for all purposes as an original signature, agreement or instrument and shall be considered to
have the same binding legal effect as if it were the original signed version thereof delivered in person.


 


(d)         Successors
and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be
enforceable by Executive, the Company and their respective successors and assigns; provided, that, the rights and
obligations of Executive under this Agreement shall not be assignable.


 


(e)         Governing
Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and
the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Texas,
without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Texas or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Texas.


 


(f)         Remedies.
Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover
damages and costs (including reasonable attorney’s fees) caused by any breach of any provision of this Agreement and to
exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages would not be an
adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any
court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or
other injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement.


 


(g)         Amendment
and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of the Company
(as approved by the Board) and Executive.


 


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


  


	COMPANY:	GRAY FOX PETROLEUM CORP.
	 	 
	 	 
	 	 
	Date: July 8, 2013	By: /s/ Lawrence Pemble
	 	Name: Lawrence Pemble
	 	Title: President / CEO
	 	 
	 	 
	EXECUTIVE:	 
	 	 
	 	 
	 	 
	Date: July 8, 2013	/s/ Lawrence Pemble
	 	Name: Lawrence Pemble 




 


 






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