Document:

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (this “Agreement”) is made and entered into as of August 15, 2016, by Foothills Petroleum, Inc., a
Nevada corporation (“Company”) and Ritchie Lanclos (“Executive”), whose address is 3720 College
Park Drive #6308, The Woodlands, Texas 77384, with reference to the following:

 

A.           Company
is an independent oil and gas exploration and production company actively focused on acquiring producing properties in the Rocky
Mountain and Mid-Continent regions.

 

B.           Executive
is a Petroleum Engineer with over 25 years’ of oil and gas exploration and development experience.

 

C.           Company
desires to employ and retain services of the Executive and Executive desires to render his services to the Company on the terms
and subject to the conditions provided herein.

 

NOW, THEREFORE, in consideration
of the various covenants and agreements hereinafter set forth and for such other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Company and Executive hereby agree as follows:

 

		1.	At-Will Employment.

 

1.1          At-Will.
Subject to the provisions of this Section 1.1,

 

(a)          Company
hereby employs Executive and Executive accepts such employment on an at-will basis which means that either party can terminate
the employment relationship at any time with or without cause. Executive’s start date shall commence as soon as possible,
but no later than August 15, 2016.

 

(b)          Executive’s
employment with Company is contingent upon a successful completion of a background screening and post-employment drug screen, along
with Executive’s ability to meet the requirements of the Immigration Reform and Control Act (1996). In order to comply with
this legal obligation, Executive must provide proof of his eligibility to work legally in the United States of America and complete
an Employment Eligibility Verification form (I-9) within three days of hire.

 

1.2          Probationary
Period. Executive’s first ninety (90) days of employment are on a trial basis and are considered a continuation of the
employment selection process. The ninety (90) day probationary period provides the Company an opportunity to observe and evaluate
the capacity of the Executive, which includes the Executive’s ability satisfactorily to perform the essential functions of
his or her job; and to observe and evaluate the Executive’s work habits and conduct, including attendance and the Executive’s
relationship with coworkers and superiors. During this probationary period, the Company may terminate employment immediately, with
or without cause and with or without notice. Likewise, the Executive may also terminate his or her employment with the Company
at any time, with or without notice and with or without cause. This 90 day probationary period is not a term of employment and
is not intended, nor does it, impact the at will nature of the relationship between the Company and the Executive.

 

    
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	 	Executive     Company	Page 1 of 27

     

    

 

		2.	Titles and Responsibilities;
Exclusivity.

 

2.1          Title
and Responsibilities.

 

(a)          Executive
shall serve as Vice President of Exploration of the Company and shall report to the Board of Directors (the “Board”)
of the Company or such other person or persons as may be designated by the Board. Executive shall serve as part of the Exploration
Division. The “Exploration Division” shall consist of the Vice President of Exploration, Vice President of Geology
& Geophysical, and any other geologists and/or petroleum engineers subsequently hired by the Company engaged in the exploration
and development of hydrocarbons. In addition to his direct duties to the Company, Executive shall as part of his responsibilities
under this Agreement also serve as an Executive Vice President of Foothills Exploration, Inc., the parent of the Company ("Foothills").
In his capacity as Vice President of Foothills he shall report to the board of directors of Foothills or to such person as may
be designated by that board.

 

(b)          Subject
to applicable law and except to the extent (if at all) as may be
otherwise set forth herein, the “Articles” or “Bylaws” of Company (with the Articles and Bylaws,
the “Company Governing Documents”), Executive shall have the roles and responsibilities
for the Company, its parent and its wholly-owned subsidiaries as set forth in Exhibit
A, attached hereto and incorporated herein by reference.

 

2.2          Exclusivity.
Executive shall in good faith and consistent with his ability, experience and talent perform his duties, and shall devote all of
his business time and efforts to the performance of such duties; provided, however, that Executive may, so long as
such activities do not interfere or conflict with Executive’s duties hereunder, (a) devote time to his personal investments;
(b) serve on the boards of, and otherwise render services to, non-profit, civic, charitable or political businesses or organizations;
(c) serve on the boards of for-profit businesses or organizations, so long as (i) any such business or organization is not engaged
in activities competitive with Company’s business, (ii) Executive notifies Company in writing of each such board on which
Executive is serving and (iii) such business or organization fully indemnifies Executive for his acts and omissions committed while
serving as a director thereof; and (iv) continue to provide services to those entities set forth on Exhibit B, attached
hereto (the “Approved Entities”) to the extent and limit that Executive previously provided such services, but
only to the extent the provision of such services is not in conflict with, in derogation of or in interference with, in any way,
Executive’s duties and responsibility to the Company, as shall be determined by Company (all of the foregoing clauses (i)
through (iv) being, the “Approved Activities”). Exhibit C attached to this Agreement shall also contain:
(v) holdings of at least 5% or more that Executive beneficially owns or controls directly or indirectly in any company whose shares
are eligible to trade in any domestic or foreign securities market; (vi) any holding that Executive beneficially owns or controls
directly or indirectly in any other company or enterprise; and shall also set forth (vii) all activities, work or consulting not
set forth on Exhibit B that Executive performs for others. Executive will promptly notify the Board of the Company and the
Board of Company of any changes or modifications to the foregoing as they occur, but in any event not later than fifteen (15) days
thereafter (the foregoing clauses (v) through (vii) being, the “Noticed Holdings and Payments”).

 

    
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	 	Executive     Company	Page 2 of 27

     

    

 

3.          Compensation
and Benefits. Company shall pay and/or provide the following compensation and benefits to Executive during the term hereof,
and Executive shall accept the same as payment in full for all services rendered by Executive, to or for the benefit of Company
and of Foothills: 

 

3.1          Annual
Salary. Executive shall be paid an initial salary of Eighty Four Thousand U.S. dollars ($84,000.00) per annum (the “Salary”).
Company will pay the Salary to Executive monthly in accordance with the payroll practices of Company in effect from time to time.
During the initial ninety (90) day Probationary Period, Executive may be paid as an independent contractor, without withholding
or deduction of any kind and as such Executive shall be wholly responsible for discharging all tax or other obligations associated
therewith.

 

(a)          Executive’s
Annual Salary shall be increased to one hundred twenty thousand U.S. dollars ($120,000.00) per annum after the Company’s
total net daily oil and gas production has reached a minimum of seven hundred fifty (750) barrels of oil equivalent per day (“BOEPD”)
for at least one hundred twenty (120) consecutive days, including production from all wholly-owned subsidiaries and sister companies
in which the Company or its parent, Foothills, owns at least fifty percent ("50%) in interest. In addition, Executive will
also be provided with a mobile phone allowance of two hundred U.S. dollars ($200.00) per month upon reaching this milestone.

 

(b)          Executive’s
Annual Salary shall be increased to one hundred fifty thousand U.S. dollars ($150,000.00) per annum following the Company’s
total net daily oil and gas production reaching a minimum of one thousand (1,000) BOEPD for at least one hundred twenty (120) consecutive
days, including production from all wholly-owned subsidiaries and sister companies (as defined in (a) hereinabove).

 

(c)          Executive’s
Annual Salary shall be increased to one hundred eighty thousand U.S. dollars ($180,000.00) per annum following the Company’s
total net daily oil and gas production reaching a minimum of one thousand five hundred (1,500) BOEPD for at least one hundred twenty
(120) consecutive days, including production from all wholly-owned subsidiaries and sister companies (as defined in (a) hereinabove).
In addition, after reaching this production threshold, Executive will also be provided with an automobile allowance of five hundred
U.S. dollars ($500.00) per month.

 

(d)          Future
increases in Executive’s Annual Salary and/or additional benefits to be offered to Executive shall be made at the Board’s
sole discretion based on Executive’s performance.

 

3.2          Restricted
Stock Units. Executive, subject to the provisions of paragraph 6.6 below, will be issued one hundred thousand (100,000) shares
of Restricted Stock Units (“RSU”) in Foothills, which will vest according to the following schedule:

 

    
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	 	Executive     Company	Page 3 of 27

     

    

 

(a)          20%
vesting one hundred eighty (180) days following date of this Agreement (90 days following the end of the Probationary Period);

 

(b)          20%
vesting two hundred seventy (270) days following the date of this Agreement (180 days following the end of the Probationary Period);
and

 

(c)          60%
vesting three hundred sixty five (365) days following the date of this Agreement (275 days following the end of the Probationary
Period).

 

3.3          Stock
Options. Upon Company’s Board of Directors (the “Board”) approval, Executive will be eligible to participate
in Foothills's equity incentive plan, once said plan has been developed, ratified and implemented by the Board of Foothills for
the benefit of executives and other employees of Foothills, the Company and other subsidiaries. The strike price for any stock
options offered to the Executive under this equity incentive plan and their vesting schedule will be determined and finalized upon
approval by the Board of Foothills and shall be based on the Executive’s official start date.

 

3.4          Division
Wide Incentive Bonus for New Discoveries: For any new discovery (i.e. wildcats) originating from the Exploration Division where
the total burden is 20% or less and where commercial quantities of hydrocarbons are produced, a total overriding royalty interest
of 2.5% will be granted and assigned to the Exploration Division. “New
Discovery” for purposes of this agreement is defined as the first oil or gas well drilled in a new field. The discovery well
is the well that is drilled to reveal the actual presence of a petroleum-bearing reservoir. Subsequent wells are called development
wells. For additional details, see Schedule 3.4, attached hereto and incorporated herein by reference.

 

3.5          Division
Wide Incentive Bonus for Other Company Projects: For other in-house prospects or projects that the Company develops and that
the Exploration Division works on (i.e. spends a substantial amount of time analyzing, and/or improving) during their tenure with
the Company, an additional bonus shall be paid as follows. If any newly drilled well, deemed to be a "wildcat" well according
to paragraph 3.4 above and for any new development well drilled on Company acreage that produces commercial quantities of hydrocarbons
and the Company realizes net sales revenues equal to at least 65% of that well’s actual AFE costs within 365 days of initial
production (“IP”), then the Exploration Division shall be entitled to receive a bonus in the amount of 5% of that well’s
actual total AFE costs.

 

(a)          Only
new wells drilled in areas with “possible” reserves, as defined by SEC reserve guidelines will qualify for this incentive.
This bonus shall be payable in cash and stock options – 10% of which will be payable in cash and 90% of which will be payable
in stock options. New wells drilled in areas classified as “proved undeveloped” and “probable” by SEC reserve
guidelines do not qualify for this incentive and therefore no bonus shall not be paid thereon.

 

(b)          To
calculate the number of stock options being awarded for the portion of this bonus payable in stock options, the 15 day moving average
of the Company’s closing common stock price, calculated on the 366th day following that well’s IP date,
shall be divided into the total bonus stock option compensation being awarded.

 

    
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	 	Executive     Company	Page 4 of 27

     

    

 

(c)          For
purposes of this agreement “AFE Costs” shall mean the actual costs incurred, which are itemized on the AFE form
for that well. These costs shall include all expenses incurred for drilling and completing a well through to the tank batteries,
pipeline or other point of sale. AFE Costs shall also include lease acquisition costs, costs of location preparation, drilling
rig, work over rig, tools, drilling fluids, rental equipment, cementing, transportation, consulting and support services, transportation,
supervision, tubulars, well head equipment, tank batteries, treaters, storage tanks, lines and associated equipment. For additional
details, see Schedule 3.5, attached hereto and incorporated herein by reference.

 

3.6          Finders
Bonus: Incentive on the Company’s Acquisition of Any Producing Asset:

 

(a)          For
any producing oil and/or natural gas assets acquired by the Company (“Deals”), which is found by Executive,
with a “Net Acquisition Price” (defined as the actual price paid for an asset after deducting from the purchase price
all costs associated with the acquisition of such asset, including commissions paid, expenses incurred in due diligence to approve
the acquisition, legal fees, finders' fees, financing costs, broker fees, administration fees, transportation costs, and including
any other normal incidental costs, except taxes) up to $4,999,999, Executive shall be entitled to receive 2% of the Deal’s
Net Acquisition Price in cash compensation and 2% of the deal’s Net Acquisition Price in stock options using the Company’s
current 15-day moving average of the Company’s closing common stock price, as calculated on the first business day following
the closing date of said Deal (“15-day Moving Average Stock Price”), to calculate the number of bonus stock options
being awarded.

 

(i)          One
half of these bonus stock options will bear a strike price set at the Company’s 15-day Moving Average Stock Price and one
half of these options will bear a strike price equal to 150% of the 15-day Moving Average Stock Price.

 

(ii)         All
stock options granted to Executive under this Section 3.6 shall be deemed fully vested upon thirty (30) days following the closing
date of said Deal and shall have a term of 60 months from the vesting date.

 

(b)          For
Deals with a Net Acquisition Price between $5 million and $9,999,999, Executive shall be entitled to receive a total of $100,000
in bonus cash compensation and 1.5% of the Deal’s Net Acquisition Price in bonus stock options using the Company’s
15-day Moving Average Stock Price to calculate the number of stock options being awarded. One half of these bonus stock options
will bear a strike price set at the Company’s 15-day Moving Average Stock Price and one half of these options will bear a
strike price equal to 150% of the current 15-day Moving Average Stock Price.

 

(c)          For
Deals with a Net Acquisition Price between $10 million and $19,999,999, Executive shall be entitled to receive a total of $100,000
in bonus cash compensation and 1.0% of the Deal’s Net Acquisition Price in bonus stock options using the Company’s
15-day Moving Average Stock Price to calculate the number of bonus stock options being awarded. One half of these bonus stock options
will bear a strike price set at the Company’s current 15-day Moving Average Stock Price and one half of these options will
bear a strike price equal to 150% of the current 15-day Moving Average Stock Price.

 

    
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	 	Executive     Company	Page 5 of 27

     

    

 

(d)          For
Deals with a Net Acquisition Price above $20 million, Executive shall be entitled to receive a total of $200,000 in bonus cash
compensation and 0.5% of the deal’s Net Acquisition Price in bonus stock options using the Company’s 15-day Moving
Average Stock Price to calculate the number of stock options being awarded. One half of these bonus stock options will bear a strike
price set at the Company’s current 15-day Moving Average Stock Price and one half of these options will bear a strike price
equal to 150% of the current 15-day Moving Average Stock Price. For additional details, see Schedule 3.6, attached hereto and incorporated
herein by reference.

 

3.7          Benefits
Package. Executive shall be entitled to the following benefits after completion of the initial ninety (90) day Probationary
Period, as described in Section 1.2 above:

 

(a)          Two
(2) weeks paid vacation annually, which is based on an accrual basis. During the 90 day Probationary Period, Executive will not
earn vacation benefits. During the remaining nine (9) months of the first year of employment, Executive will earn two weeks (10
work days) of paid vacation. Earned vacation can be taken after twelve (12) months of continuous employment. Earned vacation leave
cannot be taken before it is accrued and approved. Executive is encouraged to use vacation benefits in the fiscal year in which
vacation is earned, however a maximum of one week paid vacation may be carried over from one calendar year to the next. Vacation
may be taken in half-day increments of time. Cash compensation for earned vacation days is generally not allowed, unless an exception
is approved by the Board at its sole discretion. Upon termination, unused earned vacation will be paid in a lump sum in Executive’s
final paycheck.

 

(b)          Paid
sick time – not to exceed five (5) days per year

 

(c)          Six
(6) paid holidays per calendar year as detailed in Schedule 3.7, attached hereto.

 

(d)          Group
health insurance for Executive paid with employer contributions

 

(e)          With
the exception of the initial ninety (90) day Probationary Period, all compensation payable to Executive hereunder shall be subject
to such withholdings and deductions as Company is from time to time required to make pursuant to law, governmental regulations
or order. All items covered in this Section 3.7 are subject to change on an annual basis, except that the bonus incentive program
is made available at the discretion of the Board and may be changed or modified by the Board at any time at its sole discretion
and without prior notice to Executive.

 

3.8          Acceptance
Bonus. Executive shall be paid the sum of Ten Thousand U.S. Dollars ($10,000.00) as an Acceptance Bonus, which shall become
due and payable within ten (10) business days of Acceptance by executing the final draft of this Agreement.

 

    
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	 	Executive     Company	Page 6 of 27

     

    

 

		4.	Representations and
Warranties.

 

4.1          Executive
represents and warrants to Company that: 

 

(a)          Executive
is under no contractual or other restriction or obligation, which is inconsistent with the execution of this Agreement, the performance
of his duties hereunder, or the other rights of Company or hereunder;

 

(b)          Executive
is under no physical or mental disability that would hinder the performance of his duties under this Agreement, and 

 

(c)          this
Agreement constitutes the valid and binding obligation of Executive, enforceable by Company and against Executive in accordance
with its terms (subject to laws in effect with respect to creditors’ rights generally and applicable principles relating
to equitable remedies). 

 

4.2          Company
represents and warrants to Executive that:

 

(a)          the
execution and delivery of this Agreement by Company and the performance of its obligations hereunder have been duly authorized
by Company and no further action on Company’s part is necessary to authorize this Agreement and the performance of such obligations,
and 

 

(b)          this
Agreement constitutes the valid and binding obligation of Company, enforceable by Executive against Company in accordance with
its terms (subject to laws in effect with respect to creditors’ rights generally and applicable principles relating to equitable
remedies).

 

		5.	Insurance and Indemnification.

 

5.1          Indemnification.
Company shall indemnify Executive and hold him harmless from and against any and all costs, expenses, losses, claims, damages,
obligations or liabilities (including actual attorneys’ fees and expenses) arising out of or relating to any acts, or omissions
to act, made by Executive on behalf of or in the course of performing services for Company to the full extent permitted by the
Company to other officers and directors as in effect on the date of this Agreement, provided that the indemnity afforded by the
Company shall never be greater than that permitted by applicable law. If any claim, action, suit or proceeding is brought, or claim
relating thereto is made, against Executive with respect to which indemnity may be sought against Company pursuant to this section,
Executive shall notify Company in writing thereof, and Company shall have the right to participate in, and to the extent that it
shall wish, in its discretion, assume and control the defense thereof, with counsel satisfactory to Executive.

 

		6.	Termination.

 

6.1          Termination
by Company without Cause. Company may terminate Executive’s employment with or without Cause (as defined in Section 6.2
below) at any time during the period of Executive’s employment. If Company terminates Executive’s employment without
Cause, Company shall, immediately after the Termination Date (as defined in Section 6.6 below), continue to pay to Executive his
Salary for a period of three (3) months following such termination and his pro-rated bonus through the balance of the calendar
year in which such termination of Executive occurs ("Severance Payments"), unless such termination shall occur during
the 90-day Probationary Period. Severance Payments made to Executive shall be in addition to any other benefits earned by Executive
or to which Executive was entitled prior to such termination without Cause including pro-rated bonus.

 

    
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	 	Executive     Company	Page 7 of 27

     

    

 

6.2          Termination
for Cause. Termination for “Cause” shall mean termination because of Executive’s:

 

(a)          willful
misconduct, gross negligence or habitual neglect in the performance of his duties under this Agreement;

 

(b)          conviction
for any felony involving fraud, dishonesty or moral turpitude; 

 

(c)          breach
of any material provision of this Agreement that remains uncured five (5) days following receipt by Executive from Company of written
notice thereof, unless such breach is of a kind not susceptible to cure within such five (5) day period, in which case Executive
shall have used his commercially reasonable effort to commence cure of such breach within such five (5) day period and shall have
cured such breach no later than the thirtieth (30th) day following receipt by Executive of such written notice;

 

(d)          material
violation of Company’s policies, the violation of which by other management employees would be grounds for termination of
such other management employees, and that remains uncured five (5) days following receipt by Executive from Company of written
notice thereof; 

 

(e)          conviction
by, or entry of a plea of guilty or nolo contendere in, a court of competent and final jurisdiction for any felony, which would
materially and adversely interfere with Executive’s ability to perform his services under this Agreement;

 

(f)          perpetration
of an intentional and knowing fraud against or affecting Company or Foothills, or any customer, agent, or employee thereof, or

 

(g)          dishonesty,
moral turpitude, fraud or misrepresentation with respect to his material duties under this Agreement. For purposes hereof, no act
or failure to act on Executive’s part shall be “willful” unless done or omitted not in good faith and without
actual belief that the action or omission was in the best interest of Company. 

 

(h)          Notwithstanding
the foregoing, Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered
to him a notice of termination which shall include a statement to the effect that Executive was guilty of conduct justifying termination
for Cause and specifying the particulars thereof in detail. 

 

(i)          Executive
shall not receive compensation or other benefits for any period after termination for Cause, which have not vested or been earned
as of the Termination Date. Executive shall have the right to receive compensation or other benefits, which have already vested
or been earned as of the Termination Date for Cause, unless payment of such compensation or benefits is expressly prohibited by
the terms of any plan, program or agreement governing such compensation or benefits.

 

    
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	 	Executive     Company	Page 8 of 27

     

    

 

6.3          Termination
by Executive. If Executive terminates his employment with Company and Executive has not violated any other provision of this
Agreement or Executive’s employment is terminated as a result of his death, Company shall pay to Executive, or in the event
of his death, his beneficiary or beneficiaries or his estate, as the case may be, the Salary and prorated annual bonus, less taxes
required to be withheld and other applicable withholdings, earned but unpaid pursuant to Sections 3.1 or 3.5 hereof through the
Termination Date and the value of any earned but unused vacation time due to Executive at the Termination Date. Any such payments
due Executive, under this Section 6.3 shall be paid on the Termination Date, unless the termination of Executive's employment was
due to his death, in which case, such payment shall be made no later than thirty (30) days after the Termination Date. Executive,
or, in the event of Executive's death, Executive's beneficiary or beneficiaries, shall not have the right to receive compensation
or other benefits for any period after the Termination Date, which have not vested or been earned as of the Termination Date. Executive,
or, in the event of Executive's death, Executive's beneficiary or beneficiaries, shall have the right to receive compensation or
other benefits which have already vested or been earned as of the Termination Date, unless payment of such compensation or benefits
is expressly prohibited by the terms of any plan, program or agreement governing such compensation or benefits.

 

6.4          Termination
for Disability. If Executive becomes subject to a mental or physical condition that, in the opinion of the Board, with or without
reasonable accommodation, renders Executive unable or incompetent to carry out his work responsibilities or duties, which Executive
had at the time such condition was incurred, (a) which has existed for at least 45 days and (b) which in the opinion of a physician
selected by the Board may be expected to last for an indefinite duration or for a duration in excess of three (3) months (a “Disability”),
Company may terminate Executive’s employment hereunder as of the Termination Date specified in a written notice of termination
from Company to Executive. If Executive’s employment is terminated by Company pursuant to this Section 6.4, Company promptly
following the Termination Date shall pay to Executive, less taxes required to be withheld and other applicable withholdings, the
Salary through the Termination Date and any earned but unused vacation time due to Executive at the Termination Date. In addition,
Executive shall be entitled to receive benefits based on Company’s applicable disability plans then in effect, however nothing
set forth herein shall obligate the Company to establish any such disability plan. Executive shall not have the right to receive
compensation or other benefits for any period after the Termination Date which have not vested or been earned as of the Termination
Date. Executive shall have the right to receive compensation or other benefits which have already vested or been earned as of the
Termination Date, unless payment of such compensation or benefits is expressly prohibited by the terms of any plan, program or
agreement governing such compensation or benefits.

 

6.5          Termination
Date. Any termination of Executive’s employment hereunder pursuant to this Article 6, other than a termination as a result
of Executive’s death, shall be effected by written notice of termination. Any written notice of termination shall indicate
the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under the provisions so indicated. The effective date
of any such termination (the “Termination Date”) shall be as follows: in the event of a termination due to Executive’s
death, the date of such death. In the event of termination for any reason other than Executive’s death, the date specified
in the written notice of termination, which in no event shall be prior to the date of delivery of such notice.

 

    
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	 	Executive     Company	Page 9 of 27

     

    

 

6.6          RSU’s
Repurchase on Termination. Upon termination of Executive's employment for any reason within thirty (30) months after start
of employment, the Company may, but shall not be obligated to re-purchase all or any portion of such RSU’s as have vested
for sixty six and one half cents ($0.665) per share. Should the Company seek to exercise this option to repurchase, it shall give
Executive (or, in event of termination caused by Executive's death, to executor or administrator or other representative of Executive)
not more than two (2) week's written notice after any such termination of employment that Company is exercising its option to purchase
all or such portion of the RSU’s as are set forth in the notice and the Company shall no later than thirty (30) days thereafter
tender full payment for the RSU’s being purchased against delivery of the share certificate(s) evidencing the RSU's. Executive
acknowledges that the RSU’s are restricted securities within the meaning of the federal securities laws and may not be sold
or transferred, absent registration or an available exemption from registration under federal securities laws. The certificate(s)
evidencing the RSU shares will bear standard federal securities legends that are appropriate for unregistered, restricted securities
and will reference the Company's right to repurchase the shares in accord with the terms of this paragraph 6.6.

 

		7.	Confidentiality.

 

7.1          Nondisclosure.
Executive acknowledges that in the course of employment with Company, Executive will have access to and will learn confidential
information concerning Company, Foothills and their affiliates Foothills and the affiliates of both Foothills and of the Company
are collectively hereinafter referred to as "Affiliates"). Confidential information includes, but is not limited to:

 

(a)          information
about customers and suppliers of the Company and Affiliates, the terms and conditions under which Company, or Affiliates deal with
customers and suppliers, pricing information, financing arrangements, research materials, manuals, computer programs, techniques,
data, marketing plans and tactics, technical information, lists of asset sources, the processes and practices of Company, and Affiliates,
all information contained in electronic or computer files, all financial information, salary and wage information, and any other
information that is designated in writing by Company, or Affiliates as confidential or that Executive knows or should know is confidential;

 

(b)          information
provided by third parties that Company or any Affiliates is obligated to keep confidential; and 

 

(c)          all
other proprietary information of Company, or of any Affiliates. Executive acknowledges that all confidential information is and
shall continue to be the exclusive property of Company and of Affiliates, whether or not prepared in whole or in part by Executive
and whether or not disclosed to or entrusted to Executive in connection with employment by Company or responsibilities undertaken
on behalf of Affiliates. Executive agrees not to disclose confidential information, directly or indirectly, under any circumstances
or by any means, to any third persons without the prior written consent of Company. Executive agrees that he will not copy, transmit,
reproduce, summarize, quote, or make any commercial or other use whatsoever of confidential information, except as may be necessary
to perform work done by Executive for Company or for Affiliates. Executive agrees to exercise the highest degree of care in safeguarding
confidential information against loss, theft or other inadvertent disclosure and agrees generally to take all steps necessary or
requested by Company or Foothills to ensure maintenance of the confidentiality of the confidential information. Executive agrees
in addition to the specific covenants contained herein to comply with all of Company’s policies and of Foothills' policies
and procedures for the protection of confidential information.

 

    
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	 	Executive     Company	Page 10 of 27

     

    

 

7.2          Exclusions.
Section 7.1 above shall not apply to the following:

 

(a)          information
previously, now or hereafter voluntarily disseminated by Company or Affiliates to the public or which otherwise becomes part of
the public domain through lawful means; 

 

(b)          information
known to Executive prior to Executive’s employment with Company; 

 

(c)          information
received by Executive from third parties not known by Executive to be subject to a confidentiality agreement with Company, or Affiliates;
or 

 

(d)          information
which is not principally derived from the business plans and activities of Company, or Affiliates.

 

7.3          Confidential
Proprietary and Trade Secret Information of Others. Executive represents that he has disclosed to Company any agreement to
which Executive is or has been a party regarding the confidential information of others and Executive understands that Executive’s
employment by Company will not require Executive to breach any such agreement. Executive will not disclose such confidential information
to Company nor induce Company to use any trade secret proprietary information received from another under an agreement or understanding
prohibiting such use or disclosure.

 

7.4          No
Unfair Competition. Executive hereby acknowledges that the sale or unauthorized use or disclosure of any of Company’s
or of Affiliates' confidential information (as described in Section 7.1 above) obtained by Executive by any means whatsoever, at
any time before, during, or after the Term shall constitute unfair competition. Executive shall not engage in any unfair competition
with Company, Foothills or Affiliates either during his employment at the Company or at any time thereafter.

 

		8.	Company’s
Ownership in Employee’s Work.

 

8.1          Company’s
Ownership. Executive agrees that all inventions, discoveries, improvements, trade secrets, formulae, techniques, processes,
and know-how, whether or not patentable, and whether or not reduced to practice, that are conceived or developed during Executive’s
employment with Company, either alone or jointly with others, that are conceived or developed on Company’s time shall be
owned exclusively by Company, and Executive hereby assigns to Company all Executive’s right, title, and interest in all such
intellectual property. Executive agrees that Company shall be the sole owner of all domestic and foreign patents and all rights
pertaining thereto, and Executive further agrees to execute all documents that Company reasonably determines to be necessary or
convenient for use in applying for, prosecuting, perfecting, or enforcing patents or other intellectual property rights, including,
without limitation, the execution of any assignments, patent applications, or other documents that Company may reasonably request.
This provision is intended to apply only to the extent permitted by applicable law.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 11 of 27

     

    

 

8.2          Return
of Company’s Property and Materials. Upon termination of employment with Company, Executive shall promptly thereafter
deliver to Company all Company property and materials that are in Executive’s possession or control, including all of the
information described as confidential information pursuant to this Agreement and including all other information relating to any
inventions, discoveries, improvements, trade secrets, formulae, processes, or know-how of Company.

 

8.3          Ventures.
If Executive, during employment with Company, is engaged in or associated with the planning or implementation of any project, program,
or venture involving Company and any third parties, all rights in the project, program, or venture shall belong to Company, and
Executive shall not be entitled to any interest therein or to any commission, finder's fee, or other compensation in connection
therewith other than the salary and other benefits to be paid or provided to Executive as provided in this Agreement.

 

9.          General
Relationship. Executive shall be considered an employee of Company within the meaning of all federal, state and local laws
and regulations including, but not limited to, laws and regulations governing unemployment insurance, workers’ compensation,
industrial accident, labor and taxes.

 

		10.	Non-Solicitation.

 

10.1        Executive
agrees, in consideration of Company agreeing to obligate itself to make the Severance Payments on the terms and subject to the
conditions set forth herein, Executive, except as may be otherwise expressly set forth herein, will not during the Restricted
Period (as defined below):

 

(a)          directly
or indirectly solicit any Person who is a current or prospective customer of Company in respect of any Restricted Business (as
defined below), except on behalf of Company; or

 

(b)          induce
or attempt to induce any employee of Company to terminate his or her association with Company, or, except on behalf of Company,
solicit any such employee as an independent contractor, employee or other service provider.

 

(c)          For
purposes hereof, “Restricted Business” means, collectively, the businesses engaged in by the Company
as of the date hereof or during the period of Executive’s employment and, “Restricted Period” means
the period starting with such date as Executive’s employment hereunder is terminated for any reason and ending twelve (12)
months from such termination.

 

    
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	 	Executive     Company	Page 12 of 27

     

    

 

		11.	Miscellaneous.

 

11.1        Entire
Agreement. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof and
supersedes all existing agreements between them concerning such subject matter.

 

11.2        No
Assignment. This Agreement may not be assigned by Company or Executive without the prior written consent of the other party
and Company (which consent may be granted or withheld by such Person in its sole and absolute discretion), and any attempt to assign
rights and duties without such written consent shall be null and void and of no force and effect. Subject to the preceding sentence,
this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

 

11.3        Survival.
The covenants, agreements, representations and warranties contained in or made pursuant to this Agreement shall survive Executive’s
termination of employment, irrespective of any investigation made by or on behalf of any party.

 

11.4        Third
Party Beneficiaries. This Agreement does not create, and shall not be construed as creating, any rights enforceable by any
Person not a party to this Agreement.

 

11.5        Waiver.
The failure of either party hereto at any time to enforce performance by the other party of any provision of this Agreement shall
in no way affect such party’s rights thereafter to enforce the same, nor shall the waiver by either party of any breach of
any provision hereof be deemed to be a waiver by such party of any other breach of the same or any other provision hereof.

 

11.6        Section
Headings. The headings of the several sections in this Agreement are inserted solely for the convenience of the parties and
are not a part of and are not intended to govern, limit or aid in the construction of any term or provision hereof.

 

11.7        Notices.
All notices and other communications required or permitted under this Agreement shall be in writing, served personally on, telecopied,
sent by courier or other express private mail service, or mailed by certified, registered or express United States mail postage
prepaid, and shall be deemed given upon receipt if delivered personally, telecopied, or sent by courier or other express private
mail service, or if mailed when actually received as shown on the return receipt. Notices shall be addressed as follows:

 

		(a)	If to Company, to:

 

Attn: CEO

Foothills Petroleum, Inc.

633 17th Street, Suite
1700-A

Denver, Colorado 80202

Fax: (720) 449-7479

 

With a copy (not
constituting notice) to:

 

Aaron A. Grunfeld

Law Offices of Aaron A. Grunfeld
& Associates

11111 Santa Monica Boulevard - Suite
1840

Los Angeles, Califotnia 90025

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 13 of 27

     

    

 

		(b)	If to Executive, to:

 

Ritchie Lanclos

3720 College Park Drive, #6308

The Woodlands, Texas 77384

Fax: ________________

 

Either party may change its address for purposes
of this Section by giving to each other, in the manner provided herein, a written notice of such change.

 

11.8        Severability.
All sections, clauses and covenants contained in this Agreement are severable, and in the event any of them shall be held to be
invalid by any court, this Agreement shall be interpreted as if such invalid sections, clauses or covenants were not contained
herein.

 

11.9        Applicable
Law. This Agreement is made with reference to the laws of the State of Colorado, shall be governed by and construed in accordance
therewith, and any court action brought under or arising out of this Agreement shall be brought in any competent court within the
State of Colorado, County of Denver, or such other courts in the State of Colorado wherein the principal place of business of Company
is located.

 

11.10       Arbitration.
The parties hereto agree that any and all disputes, claims or controversies arising out of or relating to this Agreement that are
not resolved by mutual agreement shall be submitted to final and binding arbitration before JAMS/ENDISPUTE, or its successor, pursuant
to the United States Arbitration Act, 9 U.S.C. Sec. 1 et seq. Either party may commence the arbitration process called for in this
Agreement by filing a written demand for arbitration with JAMS/ENDISPUTE, with a copy to the other party. The arbitration will
be conducted in accordance with the provisions of JAMS/ENDISPUTE’s Comprehensive Arbitration Rules and Procedures
in effect at the time the demand for arbitration is filed. The parties will cooperate with JAMS/ENDISPUTE and with one another
in selecting an arbitrator from JAMS/ENDISPUTE’s panel of neutrals, and in scheduling the arbitration proceedings. The parties
covenant that they shall participate in the arbitration in good faith, provided that Company shall pay costs of the arbitration.
The provisions of this Section 11.10 may be enforced, consistent with Section 11.9, by any court of competent jurisdiction, and
the party seeking enforcement shall be entitled to an award of all costs, fees and expenses, including attorneys’ fees, to
be paid by the party against whom enforcement is ordered. All arbitration proceedings shall be held in Denver, Colorado.

 

11.11         Attorneys’
Fees. If any legal action, arbitration or other proceeding is brought for the enforcement of this Agreement, or because of
any alleged dispute, breach, default or misrepresentation in connection with this Agreement, the successful or prevailing party
shall be entitled to recover reasonable attorneys’ fees and other costs it incurred in that action or proceeding, in addition
to any other relief to which it may be entitled.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 14 of 27

     

    

 

11.12       Gender.
Where the context so requires, the use of the masculine gender shall include the feminine and/or neuter genders and the singular
shall include the plural, and vice versa, and the word “person” shall include any corporation, firm, partnership or
other form of association.

 

11.13       Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same Agreement.

 

11.14       Amendments;
Waivers. This Agreement may be amended, supplemented or changed, and any provision hereof may be waived, only by a written
instrument making specific reference to this Agreement signed by (a) the party against whom enforcement of any such amendment,
supplement, modification or waiver is sought, and (b) the Company. No action taken pursuant to this Agreement, including any investigation
by or on behalf of any party hereto or Company, shall be deemed to constitute a waiver by the Person taking such action of compliance
with any representation, warranty, covenant or agreement contained herein. The waiver by any party hereto and/or Company of a breach
of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver
of any other or subsequent breach. No failure on the part of any party hereto and/or Company to exercise, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right,
power or remedy by such Person preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

 

[REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

    
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	 	Executive     Company	Page 15 of 27

     

    

 

[SIGNATURE PAGE FOLLOWS]

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 16 of 27

     

    

 

SIGNATURE PAGE 

 

TO 

 

EXECUTIVE EMPLOYMENT AGREEMENT
– RITCHIE LANCLOS

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date first set forth.

 

	 	COMPANY
	 	 
	 	 
	 	 
	 	By:	/s/                    
	 	B.P. Allaire
	 	 
	 	Its:  President & COO
	 	 
	 	EXECUTIVE
	 	 
	 	/s/
	 	Ritchie Lanclos

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 17 of 27

     

    

 

EXHIBIT A

 

Job Description: Vice President
of Exploration

 

		1)	Prospect Generation & Maturation

 

		2)	Land/Lease Acquisitions

 

		3)	Economic Modeling (Exploration)

 

		4)	Portfolio Management

 

		5)	Drill Ready Location Permits

 

		6)	Reserve Bookings & Tracking

 

		7)	Production Performance Analysis

 

		8)	Property Acquisitions and Divestitures (A&D)

 

		9)	Marketing Exploration Deals

 

		10)	Internal Peer Reviews

 

		11)	Third Party Audits

 

		12)	Year End Reserve Report

 

		1)	Prospect Generation & Maturation

 

		·	Work closely with VP of Geology & Geophysical to generate resource distributions (P90, P50
& P10) for all Company exploration prospects. Includes developing geologic and engineering risk assessment determinations;

 

		·	Land assessment relative to prospect acreage. Coordinate with Land group to ensure proper strategy
required to acquire necessary mineral rights via acquisitions, trades, farm-out and/or lease sale bidding;

 

		·	Prepare necessary documentation to assist the successful execution of each prospect and coordinate
with Foothills Board of Directors.

 

		2)	Land / Lease Acquisitions

 

		·	Oversee and manage Land team in any structured deals to include acquisitions, lease bids and farmout
agreements;

 

		·	Prepare/oversee any economic modeling required to properly evaluate deals generated in-house or
outside deals.

 

		3)	Economic Modeling (Exploration)

 

		·	Conduct internal reserve and economic evaluation of acquisition, drilling, recompletion, and workover
opportunities utilizing appropriate economic and engineering applications;

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 18 of 27

     

    

 

		·	Prepare/oversee all exploration, appraisal and/or development risked economic modeling on in-house
generated and outside generated prospects;

 

		·	Manage work flow for Engineering team to ensure highest level of technical assessment;

 

		·	Prepare/oversee risked economic PhdWin1-based analysis using resource distributions
generated during "Prospect Generation and Maturation" phase;

 

		·	Ensure property capital costs for drilling, completion, facilities, oil/gas price forecast (as
determined by Foothills corporate pricing scenario) are used in addition to operating expenses and any marketing based deductions
based on analogy where actual data is not available.

 

		4)	Portfolio Management

 

		·	Coordinate the economic and reservoir evaluation of existing assets, and actively participate in
the development and execution of investment opportunities;

 

		·	Develop and ensure timely execution of field exploitation plans for existing assets;

 

		·	Manage exploration portfolio of prospects using a dynamic economic model to help rank prospects
according to ROI, NPV, etc.; Coordinate financial models with Foothills Board of Directors;

 

		·	Ensure all exploration prospects included in the portfolio are kept "evergreen" in regard
to Geology and Geophysical updates, oil/gas pricing forecasts, capital costs, promotes, overrides, etc.; Coordinate all changes
with Foothills corporate group.

 

		5)	Drill Ready Location Permits

 

		·	Prepare/oversee all drilling permits and coordinate with Geology and Geophysical, Land and Permitting
group;

 

		·	Coordinate all outside generated drilling permits to ensure Foothills is in agreement with scope
and outcomes;

 

		·	Prepare/oversee in-house generated drilling permit documentation to comply with State and Federal
onshore and offshore regulations; Coordinate with Foothills Board of Directors.

 

		6)	Reserve Bookings and Tracking

 

		·	Prepare/oversee all proved and probable reserve determinations based on exploration commercial
discoveries, property acquisitions and reserve updates as necessary;

 

		·	Manage/oversee PhdWin1 database of proved and probable reserves to ensure compliance
with SEC reserve criteria; Coordinate data transfer with Foothills Board of Directors.

 

		·	Manage proper documentation of reserve bookings necessary for proper annual third party auditing.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 19 of 27

     

    

 

		7)	Production Performance Analysis

 

		·	Utilize surveillance tools to monitor production and injection performance; Make recommendations
as necessary to maximize value/efficiency;

 

		·	Recommend necessary cased hole logs and/or surveys to monitor production and assist in recomplete/workover/flow
optimization recommendations;

 

		·	Oversee reserve updates based on production performance using classical methods such as decline
curves, material balance, etc.;

 

		·	Oversee production performance reserve updates on non-operated properties to ensure data collection
from partners is accurate and complete.

 

		8)	Property Acquisitions and Divestitures (A&D)

 

		·	Attend data rooms for acquisition candidates as directed by Foothills corporate team.  Collect
necessary data needed to prepare an accurate financial model representative of the property reserve potential;

 

		·	Oversee proved and probable reserve assessments necessary to generate a financial model.  This
includes economic sensitivities to determine minimal offering price which includes economic sensitivities;

 

		·	Prepare/manage necessary financial models for acquisition and divestiture deals as requested.  Coordinate
results with Foothills Board of Directors.

 

		9)	Marketing Exploration Deals

 

		·	Oversee all meetings with potential partners via Land group to sell working interest portion of
prospects as directed by Foothills Board of Directors;

 

		·	Coordinate with Geology and Geophysical group to ensure all necessary mapping and documentation
is prepared in a timely fashion to show deals;

 

		·	Coordinate with Vice President of Geology and Geophysical regular visits to establish strong investor
relations and partnerships with client base.

 

		10)	Internal Technical Peer Reviews

 

		·	Establish in-house technical peer reviews on all exploration prospects upon completion of engineering
& geological work

 

		·	Prepare guidelines necessary to asses all engineering and geological risk.  Assess if any
risk mitigation technical work can be performed.  Document all technical data compilation and results

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 20 of 27

     

    

 

		11)	Third Party Audits

 

		·	Coordinate third party audits of proved reserve bookings at minimum yearly but also as directed
by Foothills Board of Directors.

 

		12)	Year End Reserve Report

 

		·	Complete budgeting, forecasting, and reserve/economic analysis for year-end reserve reporting on
existing assets;

 

		·	Manage year end proved reserve report which would include any new drilling successes, production
performance updates, A&D transactions, capital costs changes, etc.;

 

		·	Coordinate final report with Foothills Board of Directors.

 

1PHDWin
is a full-featured, completely integrated economics and decline curve software package that offers a complete solution to manage,
organize, and evaluate reserves and economics.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 21 of 27

     

    

 

EXHIBIT B

 

Approved Entities &
Activities

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 22 of 27

     

    

 

EXHIBIT C

 

Holdings of 5% or More

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 23 of 27

     

    

 

SCHEDULE 3.4

 

Division Wide Incentive
Bonus for New Discoveries

 

In order to qualify for Division-Wide Incentive
Bonus for New Discoveries detailed in Section 3.4, Executive must submit a detailed description of the project via email to the
Board or such other person or persons as may be designated by the Board, and a written declaration describing the project they
are working on, details of the project, start date, other team members working on the project (if any) and the project’s
end goals. In the event more than one party files a written declaration per the above for the same project, precedence will be
given based on the timing of submission of such written declaration.

 

Some assets or projects may automatically be
disqualified from this bonus incentive if other Company executives or directors are already working on the same project.

 

The VP of Exploration and VP of Geology &
Geophysical shall submit recommendations to the Compensation Committee of the Board for the distribution and allocation of these
division-wide bonus incentives amongst members of that division and the Compensation Committee of the Board shall approve these
recommendations. In the event of any dispute regarding the division and distribution of this incentive bonus amongst members of
the Exploration Division, the Compensation Committee of the Board shall make a final determination.

 

For Executive to be eligible to receive the
division wide bonus incentives described in Section 3.4, Executive must remain continuously employed by the Company for a period
of 90 days following any New Discovery. Should Executive’s employment with the Company be terminated, whether for Cause or
without Cause, prior to such date, then Executive shall forfeit any bonus incentives due to them.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 24 of 27

     

    

 

SCHEDULE 3.5

 

Division Wide Incentive
Bonus for Other Company Projects

 

In order to qualify for Division-Wide Incentive
Bonus for Other Company Projects detailed in Section 3.5, Executive must submit a detailed description of the project via email
to the Board or such other person or persons as may be designated by the Board, and a written declaration describing the project
they are working on, details of the project, start date, other team members working on the project (if any) and the project’s
end goals. In the event more than one party files a written declaration per the above for the same project, precedence will be
given based on the timing of submission of such written declaration.

 

Some assets or projects may automatically be
disqualified from this bonus incentive if other Company executives or directors are already working on the same project.

 

The VP of Exploration and VP of Geology &
Geophysical shall submit recommendations to the Compensation Committee of the Board for the distribution and allocation of these
division-wide bonus incentives amongst members of that division and the Compensation Committee of the Board shall approve these
recommendations. In the event of any dispute regarding the division and distribution of this incentive bonus amongst members of
the Exploration Division, the Compensation Committee of the Board shall make a final determination.

 

For Executive to be eligible to receive the
division wide bonus incentives described in Section 3.5, Executive must remain continuously employed by the Company for a period
of at least 366 days following that well’s IP date, which is the dated used to calculate the 15-day Moving Average
Stock price for the calculation of stock options to be awarded under this incentive. Should Executive’s employment with the
Company be terminated, whether for Cause or without Cause, prior to such date, then Executive shall forfeit any bonus incentives
for other company projects due to them.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 25 of 27

     

    

 

SCHEDULE 3.6

 

Finders Bonus Incentives

 

For purposes of this Agreement, “Found”
shall mean any Deals sourced by executive or through executive’s network exclusively, which shall be documented with a written
declaration in the form of an email sent to the Board or such other person or persons as may be designated by the Board, introducing
the Deal as a Deal sourced exclusively by them or in the case of Deals sourced jointly by Executive and another member of the Exploration
Division, as a deal sourced jointly with the other member or members identified in the declaration.

 

In the event more than one party files a written
declaration per the above for the same project, precedence will be given based on the timing of submission of such written declaration
and the nature of relationship with the seller. The Compensation Committee of the Board may decide to split or allocate this bonus
incentive at its sole discretion.

 

Some assets or projects may automatically be
disqualified from this bonus incentive if the assets are located in a working area where the Company already has a strategic roll-up
plan in place and/or if other Company executives or directors are already working on the same asset or project.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 26 of 27

     

    

 

SCHEDULE 3.7

 

Paid Holidays

 

2016 Holidays

 

	Day	 	Date	 	Holiday
	Friday	 	January 1	 	New Year's Day
	Monday	 	May 30	 	Memorial Day
	Monday	 	July 4	 	Independence Day
	Monday	 	September 5	 	Labor Day
	Thursday	 	November 24	 	Thanksgiving Day
	Monday	 	December 26**	 	Christmas Day

 

	2017 Holidays	 	 	 	 

 

	Day	 	Date	 	Holiday
	Monday	 	January 2*	 	New Year's Day
	Monday	 	May 29	 	Memorial Day
	Tuesday	 	July 4	 	Independence Day
	Monday	 	September 4	 	Labor Day
	Thursday	 	November 23	 	Thanksgiving Day
	Monday	 	December 25	 	Christmas Day

 

Holiday Calendar

 

	Holiday	 	Official Date
	New Year's Day	 	January 1
	Memorial Day	 	Last Monday in May
	Independence Day	 	July 4
	Labor Day	 	First Monday in September
	Thanksgiving Day	 	4th Thursday in November
	Christmas Day	 	December 25

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 27 of 27Exhibit 10.2

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (this “Agreement”) is made and entered into as of August 15, 2016, by Foothills Petroleum, Inc., a
Nevada corporation (“Company”) and Eleazar Ovalle (“Executive”), whose address is 19542 Juergen
Road, Cypress, Texas77410, with reference to the following:

 

A.           Company
is an independent oil and gas exploration and production company actively focused on acquiring producing properties in the Rocky
Mountain and Mid-Continent regions.

 

B.           Executive
is a Professional Geoscientist with over 35 years’ of oil and gas exploration and development experience.

 

C.           Company
desires to employ and retain services of the Executive and Executive desires to render his services to the Company on the terms
and subject to the conditions provided herein.

 

NOW, THEREFORE, in consideration
of the various covenants and agreements hereinafter set forth and for such other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Company and Executive hereby agree as follows:

 

1.           At-Will
Employment. 

 

1.1         At-Will.
Subject to the provisions of this Section 1.1,

 

(a)          Company
hereby employs Executive and Executive accepts such employment on an at-will basis which means that either party can terminate
the employment relationship at any time with or without cause. Executive’s start date shall commence as soon as possible,
but no later than August 15, 2016.

 

(b)          Executive’s
employment with Company is contingent upon a successful completion of a background screening and post-employment drug screen, along
with Executive’s ability to meet the requirements of the Immigration Reform and Control Act (1996). In order to comply with
this legal obligation, Executive must provide proof of his eligibility to work legally in the United States of America and complete
an Employment Eligibility Verification form (I-9) within three days of hire.

 

1.2         Probationary
Period. Executive’s first ninety (90) days of employment are on a trial basis and are considered a continuation of the
employment selection process. The ninety (90) day probationary period provides the Company an opportunity to observe and evaluate
the capacity of the Executive, which includes the Executive’s ability satisfactorily to perform the essential functions of
his or her job; and to observe and evaluate the Executive’s work habits and conduct, including attendance and the Executive’s
relationship with coworkers and superiors. During this probationary period, the Company may terminate employment immediately, with
or without cause and with or without notice. Likewise, the Executive may also terminate his or her employment with the Company
at any time, with or without notice and with or without cause. This 90 day probationary period is not a term of employment and
is not intended, nor does it, impact the at will nature of the relationship between the Company and the Executive.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 1 of 26

     

    

 

2.           Titles
and Responsibilities; Exclusivity. 

 

2.1         Title
and Responsibilities.

 

(a)          Executive
shall serve as Vice President of Geology & Geophysical of the Company and shall report to the Board of Directors (the
“Board”) of the Company or such other person or persons as may be designated by the Board. Executive shall serve
as part of the Exploration Division. The “Exploration Division” shall consist of the Vice President of Geology
& Geophysical, Vice President of Exploration and any other geologists and/or petroleum engineers subsequently hired by the
Company engaged in the exploration and development of hydrocarbons. In addition to his direct duties to the Company, Executive
shall as part of his responsibilities under this Agreement also serve as an Executive Vice President of Foothills Exploration,
Inc., the parent of the Company ("Foothills"). In his capacity as Vice President of Foothills he shall report to the
board of directors of Foothills or to such person as may be designated by that board.

 

(b)          Subject
to applicable law and except to the extent (if at all) as may be
otherwise set forth herein, the “Articles” or “Bylaws” of Company (with the Articles and Bylaws,
the “Company Governing Documents”), Executive shall have the roles and responsibilities
for the Company, its parent and its wholly-owned subsidiaries as set forth in Exhibit
A, attached hereto and incorporated herein by reference.

 

2.2         Exclusivity.
Executive shall in good faith and consistent with his ability, experience and talent perform his duties, and shall devote all of
his business time and efforts to the performance of such duties; provided, however, that Executive may, so long as
such activities do not interfere or conflict with Executive’s duties hereunder, (a) devote time to his personal investments;
(b) serve on the boards of, and otherwise render services to, non-profit, civic, charitable or political businesses or organizations;
(c) serve on the boards of for-profit businesses or organizations, so long as (i) any such business or organization is not engaged
in activities competitive with Company’s business, (ii) Executive notifies Company in writing of each such board on which
Executive is serving and (iii) such business or organization fully indemnifies Executive for his acts and omissions committed while
serving as a director thereof; and (iv) continue to provide services to those entities set forth on Exhibit B, attached
hereto (the “Approved Entities”) to the extent and limit that Executive previously provided such services, but
only to the extent the provision of such services is not in conflict with, in derogation of or in interference with, in any way,
Executive’s duties and responsibility to the Company, as shall be determined by Company (all of the foregoing clauses (i)
through (iv) being, the “Approved Activities”). Exhibit C attached to this Agreement shall also contain:
(v) holdings of at least 5% or more that Executive beneficially owns or controls directly or indirectly in any company whose shares
are eligible to trade in any domestic or foreign securities market; (vi) any holding that Executive beneficially owns or controls
directly or indirectly in any other company or enterprise; and shall also set forth (vii) all activities, work or consulting not
set forth on Exhibit B that Executive performs for others. Executive will promptly notify the Board of the Company and the
Board of Company of any changes or modifications to the foregoing as they occur, but in any event not later than fifteen (15) days
thereafter (the foregoing clauses (v) through (vii) being, the “Noticed Holdings and Payments”).

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 2 of 26

     

    

 

3.           Compensation
and Benefits. Company shall pay and/or provide the following compensation and benefits to Executive during the term hereof,
and Executive shall accept the same as payment in full for all services rendered by Executive, to or for the benefit of Company
and of Foothills: 

 

3.1         Annual
Salary. Executive shall be paid an initial salary of Eighty Four Thousand U.S. dollars ($84,000.00) per annum (the “Salary”).
Company will pay the Salary to Executive monthly in accordance with the payroll practices of Company in effect from time to time.
During the initial ninety (90) day Probationary Period, Executive may be paid as an independent contractor, without withholding
or deduction of any kind and as such Executive shall be wholly responsible for discharging all tax or other obligations associated
therewith.

 

(a)          Executive’s
Annual Salary shall be increased to one hundred twenty thousand U.S. dollars ($120,000.00) per annum after the Company’s
total net daily oil and gas production has reached a minimum of seven hundred fifty (750) barrels of oil equivalent per day (“BOEPD”)
for at least one hundred twenty (120) consecutive days, including production from all wholly-owned subsidiaries and sister companies
in which the Company or its parent, Foothills, owns at least fifty percent ("50%) in interest. In addition, Executive will
also be provided with a mobile phone allowance of two hundred U.S. dollars ($200.00) per month upon reaching this milestone.

 

(b)          Executive’s
Annual Salary shall be increased to one hundred fifty thousand U.S. dollars ($150,000.00) per annum following the Company’s
total net daily oil and gas production reaching a minimum of one thousand (1,000) BOEPD for at least one hundred twenty (120) consecutive
days, including production from all wholly-owned subsidiaries and sister companies (as defined in (a) hereinabove).

 

(c)          Executive’s
Annual Salary shall be increased to one hundred eighty thousand U.S. dollars ($180,000.00) per annum following the Company’s
total net daily oil and gas production reaching a minimum of one thousand five hundred (1,500) BOEPD for at least one hundred twenty
(120) consecutive days, including production from all wholly-owned subsidiaries and sister companies (as defined in (a) hereinabove).
In addition, after reaching this production threshold, Executive will also be provided with an automobile allowance of five hundred
U.S. dollars ($500.00) per month.

 

(d)          Future
increases in Executive’s Annual Salary and/or additional benefits to be offered to Executive shall be made at the Board’s
sole discretion based on Executive’s performance.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 3 of 26

     

    

 

3.2         Restricted
Stock Units. Executive, subject to the provisions of paragraph 6.6 below, will be issued one hundred thousand (100,000) shares
of Restricted Stock Units (“RSU”) in Foothills, which will vest according to the following schedule:

 

(a)          20%
vesting one hundred eighty (180) days following date of this Agreement (90 days following the end of the Probationary Period);

 

(b)          20%
vesting two hundred seventy (270) days following the date of this Agreement (180 days following the end of the Probationary Period);
and

 

(c)          60%
vesting three hundred sixty five (365) days following the date of this Agreement (275 days following the end of the Probationary
Period).

 

3.3         Stock
Options. Upon Company’s Board of Directors (the “Board”) approval, Executive will be eligible to participate
in Foothill's equity incentive plan, once said plan has been developed, ratified and implemented by the Board of Foothills for
the benefit of executives and other employees of Foothills, the Company and other subsidiaries. The strike price for any stock
options offered to the Executive under this equity incentive plan and their vesting schedule will be determined and finalized upon
approval by the Board of Foothills and shall be based on the Executive’s official start date.

 

3.4         Division
Wide Incentive Bonus for New Discoveries: For any new discovery (i.e. wildcats) originating from the Exploration Division where
the total burden is 20% or less and where commercial quantities of hydrocarbons are produced, a total overriding royalty interest
of 2.5% will be granted and assigned to the Exploration Division. “New
Discovery” for purposes of this agreement is defined as the first oil or gas well drilled in a new field. The discovery well
is the well that is drilled to reveal the actual presence of a petroleum-bearing reservoir. Subsequent wells are called development
wells. For additional details, see Schedule 3.4, attached hereto and incorporated herein by reference.

 

3.5         Division
Wide Incentive Bonus for Other Company Projects: For other in-house prospects or projects that the Company develops and that
the Exploration Division works on (i.e. spends a substantial amount of time analyzing, and/or improving) during their tenure with
the Company, an additional bonus shall be paid as follows. If any newly drilled well, deemed to be a "wildcat" well according
to paragraph 3.4 above and for any new development well drilled on Company acreage that produces commercial quantities of hydrocarbons
and the Company realizes net sales revenues equal to at least 65% of that well’s actual AFE costs within 365 days of initial
production (“IP”), then the Exploration Division shall be entitled to receive a bonus in the amount of 5% of that well’s
actual total AFE costs.

 

(a)          Only
new wells drilled in areas with “possible” reserves, as defined by SEC reserve guidelines will qualify for this incentive.
This bonus shall be payable in cash and stock options – 10% of which will be payable in cash and 90% of which will be payable
in stock options. New wells drilled in areas classified as “proved undeveloped” and “probable” by SEC reserve
guidelines do not qualify for this incentive and therefore no bonus shall not be paid thereon.

 

(b)          To
calculate the number of stock options being awarded for the portion of this bonus payable in stock options, the 15 day moving average
of the Company’s closing common stock price, calculated on the 366th day following that well’s IP date,
shall be divided into the total bonus stock option compensation being awarded.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 4 of 26

     

    

 

(c)          For
purposes of this agreement “AFE Costs” shall mean the actual costs incurred, which are itemized on the AFE form
for that well. These costs shall include all expenses incurred for drilling and completing a well through to the tank batteries,
pipeline or other point of sale. AFE Costs shall also include lease acquisition costs, costs of location preparation, drilling
rig, work over rig, tools, drilling fluids, rental equipment, cementing, transportation, consulting and support services, transportation,
supervision, tubulars, well head equipment, tank batteries, treaters, storage tanks, lines and associated equipment. For additional
details, see Schedule 3.5, attached hereto and incorporated herein by reference.

 

3.6         Finders
Bonus: Incentive on the Company’s Acquisition of Any Producing Asset:

 

(a)          For
any producing oil and/or natural gas assets acquired by the Company (“Deals”), which is found by Executive,
with a “Net Acquisition Price” (defined as the actual price paid for an asset after deducting from the purchase price
all costs associated with the acquisition of such asset, including commissions paid, expenses incurred in due diligence to approve
the acquisition, legal fees, finders' fees, financing costs, broker fees, administration fees, transportation costs, and including
any other normal incidental costs, except taxes) up to $4,999,999, Executive shall be entitled to receive 2% of the Deal’s
Net Acquisition Price in cash compensation and 2% of the deal’s Net Acquisition Price in stock options using the Company’s
current 15-day moving average of the Company’s closing common stock price, as calculated on the first business day following
the closing date of said Deal (“15-day Moving Average Stock Price”), to calculate the number of bonus stock options
being awarded.

 

(i)          One
half of these bonus stock options will bear a strike price set at the Company’s 15-day Moving Average Stock Price and one
half of these options will bear a strike price equal to 150% of the 15-day Moving Average Stock Price.

 

(ii)         All
stock options granted to Executive under this Section 3.6 shall be deemed fully vested upon thirty (30) days following the closing
date of said Deal and shall have a term of 60 months from the vesting date.

 

(b)          For
Deals with a Net Acquisition Price between $5 million and $9,999,999, Executive shall be entitled to receive a total of $100,000
in bonus cash compensation and 1.5% of the Deal’s Net Acquisition Price in bonus stock options using the Company’s
15-day Moving Average Stock Price to calculate the number of stock options being awarded. One half of these bonus stock options
will bear a strike price set at the Company’s 15-day Moving Average Stock Price and one half of these options will bear a
strike price equal to 150% of the current 15-day Moving Average Stock Price.

 

(c)          For
Deals with a Net Acquisition Price between $10 million and $19,999,999, Executive shall be entitled to receive a total of $100,000
in bonus cash compensation and 1.0% of the Deal’s Net Acquisition Price in bonus stock options using the Company’s
15-day Moving Average Stock Price to calculate the number of bonus stock options being awarded. One half of these bonus stock options
will bear a strike price set at the Company’s current 15-day Moving Average Stock Price and one half of these options will
bear a strike price equal to 150% of the current 15-day Moving Average Stock Price.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 5 of 26

     

    

 

(d)          For
Deals with a Net Acquisition Price above $20 million, Executive shall be entitled to receive a total of $200,000 in bonus cash
compensation and 0.5% of the deal’s Net Acquisition Price in bonus stock options using the Company’s 15-day Moving
Average Stock Price to calculate the number of stock options being awarded. One half of these bonus stock options will bear a strike
price set at the Company’s current 15-day Moving Average Stock Price and one half of these options will bear a strike price
equal to 150% of the current 15-day Moving Average Stock Price. For additional details, see Schedule 3.6, attached hereto and incorporated
herein by reference.

 

3.7         Benefits
Package. Executive shall be entitled to the following benefits after completion of the initial ninety (90) day Probationary
Period, as described in Section 1.2 above:

 

(a)          Two
(2) weeks paid vacation annually, which is based on an accrual basis. During the 90 day Probationary Period, Executive will not
earn vacation benefits. During the remaining nine (9) months of the first year of employment, Executive will earn two weeks (10
work days) of paid vacation. Earned vacation can be taken after twelve (12) months of continuous employment. Earned vacation leave
cannot be taken before it is accrued and approved. Executive is encouraged to use vacation benefits in the fiscal year in which
vacation is earned, however a maximum of one week paid vacation may be carried over from one calendar year to the next. Vacation
may be taken in half-day increments of time. Cash compensation for earned vacation days is generally not allowed, unless an exception
is approved by the Board at its sole discretion. Upon termination, unused earned vacation will be paid in a lump sum in Executive’s
final paycheck.

 

(b)          Paid
sick time – not to exceed five (5) days per year

 

(c)          Six
(6) paid holidays per calendar year as detailed in Schedule 3.7, attached hereto.

 

(d)          Group
health insurance for Executive paid with employer contributions

 

(e)          With
the exception of the initial ninety (90) day Probationary Period, all compensation payable to Executive hereunder shall be subject
to such withholdings and deductions as Company is from time to time required to make pursuant to law, governmental regulations
or order. All items covered in this Section 3.7 are subject to change on an annual basis, except that the bonus incentive program
is made available at the discretion of the Board and may be changed or modified by the Board at any time at its sole discretion
and without prior notice to Executive.

 

3.8         Acceptance
Bonus. Executive shall be paid the sum of Ten Thousand U.S. Dollars ($10,000.00) as an Acceptance Bonus, which shall become
due and payable within ten (10) business days of Acceptance by executing the final draft of this Agreement.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 6 of 26

     

    

 

4.           Representations
and Warranties. 

 

4.1         Executive
represents and warrants to Company that: 

 

(a)          Executive
is under no contractual or other restriction or obligation, which is inconsistent with the execution of this Agreement, the performance
of his duties hereunder, or the other rights of Company or hereunder;

 

(b)          Executive
is under no physical or mental disability that would hinder the performance of his duties under this Agreement, and 

 

(c)          this
Agreement constitutes the valid and binding obligation of Executive, enforceable by Company and against Executive in accordance
with its terms (subject to laws in effect with respect to creditors’ rights generally and applicable principles relating
to equitable remedies). 

 

4.2         Company
represents and warrants to Executive that:

 

(a)          the
execution and delivery of this Agreement by Company and the performance of its obligations hereunder have been duly authorized
by Company and no further action on Company’s part is necessary to authorize this Agreement and the performance of such obligations,
and 

 

(b)          this
Agreement constitutes the valid and binding obligation of Company, enforceable by Executive against Company in accordance with
its terms (subject to laws in effect with respect to creditors’ rights generally and applicable principles relating to equitable
remedies).

 

5.           Insurance
and Indemnification. 

 

5.1         Indemnification.
Company shall indemnify Executive and hold him harmless from and against any and all costs, expenses, losses, claims, damages,
obligations or liabilities (including actual attorneys’ fees and expenses) arising out of or relating to any acts, or omissions
to act, made by Executive on behalf of or in the course of performing services for Company to the full extent permitted by the
Company to other officers and directors as in effect on the date of this Agreement, provided that the indemnity afforded by the
Company shall never be greater than that permitted by applicable law. If any claim, action, suit or proceeding is brought, or claim
relating thereto is made, against Executive with respect to which indemnity may be sought against Company pursuant to this section,
Executive shall notify Company in writing thereof, and Company shall have the right to participate in, and to the extent that it
shall wish, in its discretion, assume and control the defense thereof, with counsel satisfactory to Executive.

 

6.           Termination.

 

6.1         Termination
by Company without Cause. Company may terminate Executive’s employment with or without Cause (as defined in Section 6.2
below) at any time during the period of Executive’s employment. If Company terminates Executive’s employment without
Cause, Company shall, immediately after the Termination Date (as defined in Section 6.6 below), continue to pay to Executive his
Salary for a period of three (3) months following such termination and his pro-rated bonus through the balance of the calendar
year in which such termination of Executive occurs ("Severance Payments"), unless such termination shall occur during
the 90-day Probationary Period. Severance Payments made to Executive shall be in addition to any other benefits earned by Executive
or to which Executive was entitled prior to such termination without Cause including pro-rated bonus.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 7 of 26

     

    

 

6.2         Termination
for Cause. Termination for “Cause” shall mean termination because of Executive’s:

 

(a)          willful
misconduct, gross negligence or habitual neglect in the performance of his duties under this Agreement;

 

(b)          conviction
for any felony involving fraud, dishonesty or moral turpitude; 

 

(c)          breach
of any material provision of this Agreement that remains uncured five (5) days following receipt by Executive from Company of written
notice thereof, unless such breach is of a kind not susceptible to cure within such five (5) day period, in which case Executive
shall have used his commercially reasonable effort to commence cure of such breach within such five (5) day period and shall have
cured such breach no later than the thirtieth (30th) day following receipt by Executive of such written notice;

 

(d)          material
violation of Company’s policies, the violation of which by other management employees would be grounds for termination of
such other management employees, and that remains uncured five (5) days following receipt by Executive from Company of written
notice thereof; 

 

(e)          conviction
by, or entry of a plea of guilty or nolo contendere in, a court of competent and final jurisdiction for any felony, which would
materially and adversely interfere with Executive’s ability to perform his services under this Agreement;

 

(f)          perpetration
of an intentional and knowing fraud against or affecting Company or Foothills, or any customer, agent, or employee thereof, or

 

(g)          dishonesty,
moral turpitude, fraud or misrepresentation with respect to his material duties under this Agreement. For purposes hereof, no act
or failure to act on Executive’s part shall be “willful” unless done or omitted not in good faith and without
actual belief that the action or omission was in the best interest of Company. 

 

(h)          Notwithstanding
the foregoing, Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered
to him a notice of termination which shall include a statement to the effect that Executive was guilty of conduct justifying termination
for Cause and specifying the particulars thereof in detail. 

 

(i)          Executive
shall not receive compensation or other benefits for any period after termination for Cause, which have not vested or been earned
as of the Termination Date. Executive shall have the right to receive compensation or other benefits, which have already vested
or been earned as of the Termination Date for Cause, unless payment of such compensation or benefits is expressly prohibited by
the terms of any plan, program or agreement governing such compensation or benefits.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 8 of 26

     

    

 

6.3         Termination
by Executive. If Executive terminates his employment with Company and Executive has not violated any other provision of this
Agreement or Executive’s employment is terminated as a result of his death, Company shall pay to Executive, or in the event
of his death, his beneficiary or beneficiaries or his estate, as the case may be, the Salary and prorated annual bonus, less taxes
required to be withheld and other applicable withholdings, earned but unpaid pursuant to Sections 3.1 or 3.5 hereof through the
Termination Date and the value of any earned but unused vacation time due to Executive at the Termination Date. Any such payments
due Executive, under this Section 6.3 shall be paid on the Termination Date, unless the termination of Executive's employment was
due to his death, in which case, such payment shall be made no later than thirty (30) days after the Termination Date. Executive,
or, in the event of Executive's death, Executive's beneficiary or beneficiaries, shall not have the right to receive compensation
or other benefits for any period after the Termination Date, which have not vested or been earned as of the Termination Date. Executive,
or, in the event of Executive's death, Executive's beneficiary or beneficiaries, shall have the right to receive compensation or
other benefits which have already vested or been earned as of the Termination Date, unless payment of such compensation or benefits
is expressly prohibited by the terms of any plan, program or agreement governing such compensation or benefits.

 

6.4         Termination
for Disability. If Executive becomes subject to a mental or physical condition that, in the opinion of the Board, with or without
reasonable accommodation, renders Executive unable or incompetent to carry out his work responsibilities or duties, which Executive
had at the time such condition was incurred, (a) which has existed for at least 45 days and (b) which in the opinion of a physician
selected by the Board may be expected to last for an indefinite duration or for a duration in excess of three (3) months (a “Disability”),
Company may terminate Executive’s employment hereunder as of the Termination Date specified in a written notice of termination
from Company to Executive. If Executive’s employment is terminated by Company pursuant to this Section 6.4, Company promptly
following the Termination Date shall pay to Executive, less taxes required to be withheld and other applicable withholdings, the
Salary through the Termination Date and any earned but unused vacation time due to Executive at the Termination Date. In addition,
Executive shall be entitled to receive benefits based on Company’s applicable disability plans then in effect, however nothing
set forth herein shall obligate the Company to establish any such disability plan. Executive shall not have the right to receive
compensation or other benefits for any period after the Termination Date which have not vested or been earned as of the Termination
Date. Executive shall have the right to receive compensation or other benefits which have already vested or been earned as of the
Termination Date, unless payment of such compensation or benefits is expressly prohibited by the terms of any plan, program or
agreement governing such compensation or benefits.

 

6.5         Termination
Date. Any termination of Executive’s employment hereunder pursuant to this Article 6, other than a termination as a result
of Executive’s death, shall be effected by written notice of termination. Any written notice of termination shall indicate
the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under the provisions so indicated. The effective date
of any such termination (the “Termination Date”) shall be as follows: in the event of a termination due to Executive’s
death, the date of such death. In the event of termination for any reason other than Executive’s death, the date specified
in the written notice of termination, which in no event shall be prior to the date of delivery of such notice.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 9 of 26

     

    

 

6.6         RSU’s
Repurchase on Termination. Upon termination of Executive's employment for any reason within thirty (30) months after start
of employment, the Company may, but shall not be obligated to re-purchase all or any portion of such RSU’s as have vested
for sixty six and one half cents ($0.665) per share. Should the Company seek to exercise this option to repurchase, it shall give
Executive (or, in event of termination caused by Executive's death, to executor or administrator or other representative of Executive)
not more than two (2) week's written notice after any such termination of employment that Company is exercising its option to purchase
all or such portion of the RSU’s as are set forth in the notice and the Company shall no later than thirty (30) days thereafter
tender full payment for the RSU’s being purchased against delivery of the share certificate(s) evidencing the RSU's. Executive
acknowledges that the RSU’s are restricted securities within the meaning of the federal securities laws and may not be sold
or transferred, absent registration or an available exemption from registration under federal securities laws. The certificate(s)
evidencing the RSU shares will bear standard federal securities legends that are appropriate for unregistered, restricted securities
and will reference the Company's right to repurchase the shares in accord with the terms of this paragraph 6.6.

 

7.           Confidentiality.

 

7.1         Nondisclosure.
Executive acknowledges that in the course of employment with Company, Executive will have access to and will learn confidential
information concerning Company, Foothills and their affiliates (Foothills and the affiliates of both Foothills and of the Comapany
are collectively hereinafter referred to as "Affiliates"). Confidential information includes, but is not limited to:

 

(a)          information
about customers and suppliers of Company and Affiliates, the terms and conditions under which Company, or Affiliates deal with
customers and suppliers, pricing information, financing arrangements, research materials, manuals, computer programs, techniques,
data, marketing plans and tactics, technical information, lists of asset sources, the processes and practices of Company, and Affiliates,
all information contained in electronic or computer files, all financial information, salary and wage information, and any other
information that is designated in writing by Company, or Affiliates as confidential or that Executive knows or should know is confidential;

 

(b)          information
provided by third parties that Company or any Affiliates is obligated to keep confidential; and 

 

(c)          all
other proprietary information of Company, or of any Affiliates. Executive acknowledges that all confidential information is and
shall continue to be the exclusive property of Company and of Affiliates, whether or not prepared in whole or in part by Executive
and whether or not disclosed to or entrusted to Executive in connection with employment by Company or responsibilities undertaken
on behalf of Affiliates. Executive agrees not to disclose confidential information, directly or indirectly, under any circumstances
or by any means, to any third persons without the prior written consent of Company. Executive agrees that he will not copy, transmit,
reproduce, summarize, quote, or make any commercial or other use whatsoever of confidential information, except as may be necessary
to perform work done by Executive for Company or for Affiliates. Executive agrees to exercise the highest degree of care in safeguarding
confidential information against loss, theft or other inadvertent disclosure and agrees generally to take all steps necessary or
requested by Company or Foothills to ensure maintenance of the confidentiality of the confidential information. Executive agrees
in addition to the specific covenants contained herein to comply with all of Company’s policies and of Foothills' policies
and procedures for the protection of confidential information.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 10 of 26

     

    

 

7.2         Exclusions.
Section 7.1 above shall not apply to the following:

 

(a)          information
previously, now or hereafter voluntarily disseminated by Company or Affiliates to the public or which otherwise becomes part of
the public domain through lawful means; 

 

(b)          information
known to Executive prior to Executive’s employment with Company; 

 

(c)          information
received by Executive from third parties not known by Executive to be subject to a confidentiality agreement with Company, or Affiliates;
or 

 

(d)          information
which is not principally derived from the business plans and activities of Company, or Affiliates.

 

7.3         Confidential
Proprietary and Trade Secret Information of Others. Executive represents that he has disclosed to Company any agreement to
which Executive is or has been a party regarding the confidential information of others and Executive understands that Executive’s
employment by Company will not require Executive to breach any such agreement. Executive will not disclose such confidential information
to Company nor induce Company to use any trade secret proprietary information received from another under an agreement or understanding
prohibiting such use or disclosure.

 

7.4         No
Unfair Competition. Executive hereby acknowledges that the sale or unauthorized use or disclosure of any of Company’s
or of Affiliates' confidential information (as described in Section 7.1 above) obtained by Executive by any means whatsoever, at
any time before, during, or after the Term shall constitute unfair competition. Executive shall not engage in any unfair competition
with Company, Foothills or Affiliates either during his employment at the Company or at any time thereafter.

 

8.           Company’s
Ownership in Employee’s Work. 

 

8.1         Company’s
Ownership. Executive agrees that all inventions, discoveries, improvements, trade secrets, formulae, techniques, processes,
and know-how, whether or not patentable, and whether or not reduced to practice, that are conceived or developed during Executive’s
employment with Company, either alone or jointly with others, that are conceived or developed on Company’s time shall be
owned exclusively by Company, and Executive hereby assigns to Company all Executive’s right, title, and interest in all such
intellectual property. Executive agrees that Company shall be the sole owner of all domestic and foreign patents and all rights
pertaining thereto, and Executive further agrees to execute all documents that Company reasonably determines to be necessary or
convenient for use in applying for, prosecuting, perfecting, or enforcing patents or other intellectual property rights, including,
without limitation, the execution of any assignments, patent applications, or other documents that Company may reasonably request.
This provision is intended to apply only to the extent permitted by applicable law.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 11 of 26

     

    

 

8.2         Return
of Company’s Property and Materials. Upon termination of employment with Company, Executive shall promptly thereafter
deliver to Company all Company property and materials that are in Executive’s possession or control, including all of the
information described as confidential information pursuant to this Agreement and including all other information relating to any
inventions, discoveries, improvements, trade secrets, formulae, processes, or know-how of Company.

 

8.3         Ventures.
If Executive, during employment with Company, is engaged in or associated with the planning or implementation of any project, program,
or venture involving Company and any third parties, all rights in the project, program, or venture shall belong to Company, and
Executive shall not be entitled to any interest therein or to any commission, finder's fee, or other compensation in connection
therewith other than the salary and other benefits to be paid or provided to Executive as provided in this Agreement.

 

9.           General
Relationship. Executive shall be considered an employee of Company within the meaning of all federal, state and local laws
and regulations including, but not limited to, laws and regulations governing unemployment insurance, workers’ compensation,
industrial accident, labor and taxes.

 

10.         Non-Solicitation.

 

10.1        Executive
agrees, in consideration of Company agreeing to obligate itself to make the Severance Payments on the terms and subject to the
conditions set forth herein, Executive, except as may be otherwise expressly set forth herein, will not during the Restricted
Period (as defined below):

 

(a)          directly
or indirectly solicit any Person who is a current or prospective customer of Company in respect of any Restricted Business (as
defined below), except on behalf of Company; or

 

(b)          induce
or attempt to induce any employee of Company to terminate his or her association with Company, or, except on behalf of Company,
solicit any such employee as an independent contractor, employee or other service provider.

 

(c)          For
purposes hereof, “Restricted Business” means, collectively, the businesses engaged in by the Company
as of the date hereof or during the period of Executive’s employment and, “Restricted Period” means
the period starting with such date as Executive’s employment hereunder is terminated for any reason and ending twelve (12)
months from such termination.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 12 of 26

     

    

 

11.         Miscellaneous.

 

11.1        Entire
Agreement. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof and
supersedes all existing agreements between them concerning such subject matter.

 

11.2        No
Assignment. This Agreement may not be assigned by Company or Executive without the prior written consent of the other party
and Company (which consent may be granted or withheld by such Person in its sole and absolute discretion), and any attempt to assign
rights and duties without such written consent shall be null and void and of no force and effect. Subject to the preceding sentence,
this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

 

11.3        Survival.
The covenants, agreements, representations and warranties contained in or made pursuant to this Agreement shall survive Executive’s
termination of employment, irrespective of any investigation made by or on behalf of any party.

 

11.4        Third
Party Beneficiaries. This Agreement does not create, and shall not be construed as creating, any rights enforceable by any
Person not a party to this Agreement.

 

11.5        Waiver.
The failure of either party hereto at any time to enforce performance by the other party of any provision of this Agreement shall
in no way affect such party’s rights thereafter to enforce the same, nor shall the waiver by either party of any breach of
any provision hereof be deemed to be a waiver by such party of any other breach of the same or any other provision hereof.

 

11.6        Section
Headings. The headings of the several sections in this Agreement are inserted solely for the convenience of the parties and
are not a part of and are not intended to govern, limit or aid in the construction of any term or provision hereof.

 

11.7        Notices.
All notices and other communications required or permitted under this Agreement shall be in writing, served personally on, telecopied,
sent by courier or other express private mail service, or mailed by certified, registered or express United States mail postage
prepaid, and shall be deemed given upon receipt if delivered personally, telecopied, or sent by courier or other express private
mail service, or if mailed when actually received as shown on the return receipt. Notices shall be addressed as follows:

 

(a)          If
to Company, to:

 

Attn: CEO

Foothills Petroleum, Inc.

633 17th Street, Suite
1700-A

Denver, Colorado 80202

Fax: (720) 449-7479

 

With a copy (not
constituting notice) to:

 

Aaron A. Grunfeld

Law Offices of Aaron A. Grunfeld
& Associates

11111 Santa Monica Boulevard - Suite
1840

Los Angeles, California 90025

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 13 of 26

     

    

 

(b)          If
to Executive, to:

 

Eleazar Ovalle

19542 Juergen Road

Cypress, Texas 77410

Fax: ________________

 

Either party may change its address for purposes
of this Section by giving to each other, in the manner provided herein, a written notice of such change.

 

11.8        Severability.
All sections, clauses and covenants contained in this Agreement are severable, and in the event any of them shall be held to be
invalid by any court, this Agreement shall be interpreted as if such invalid sections, clauses or covenants were not contained
herein.

 

11.9        Applicable
Law. This Agreement is made with reference to the laws of the State of Colorado, shall be governed by and construed in accordance
therewith, and any court action brought under or arising out of this Agreement shall be brought in any competent court within the
State of Colorado, County of Denver, or such other courts in the State of Colorado wherein the principal place of business of Company
is located.

 

11.10      Arbitration.
The parties hereto agree that any and all disputes, claims or controversies arising out of or relating to this Agreement that are
not resolved by mutual agreement shall be submitted to final and binding arbitration before JAMS/ENDISPUTE, or its successor, pursuant
to the United States Arbitration Act, 9 U.S.C. Sec. 1 et seq. Either party may commence the arbitration process called for in this
Agreement by filing a written demand for arbitration with JAMS/ENDISPUTE, with a copy to the other party. The arbitration will
be conducted in accordance with the provisions of JAMS/ENDISPUTE’s Comprehensive Arbitration Rules and Procedures
in effect at the time the demand for arbitration is filed. The parties will cooperate with JAMS/ENDISPUTE and with one another
in selecting an arbitrator from JAMS/ENDISPUTE’s panel of neutrals, and in scheduling the arbitration proceedings. The parties
covenant that they shall participate in the arbitration in good faith, provided that Company shall pay costs of the arbitration.
The provisions of this Section 11.10 may be enforced, consistent with Section 11.9, by any court of competent jurisdiction, and
the party seeking enforcement shall be entitled to an award of all costs, fees and expenses, including attorneys’ fees, to
be paid by the party against whom enforcement is ordered. All arbitration proceedings shall be held in Denver, Colorado.

 

11.11      Attorneys’
Fees. If any legal action, arbitration or other proceeding is brought for the enforcement of this Agreement, or because of
any alleged dispute, breach, default or misrepresentation in connection with this Agreement, the successful or prevailing party
shall be entitled to recover reasonable attorneys’ fees and other costs it incurred in that action or proceeding, in addition
to any other relief to which it may be entitled.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 14 of 26

     

    

 

11.12      Gender.
Where the context so requires, the use of the masculine gender shall include the feminine and/or neuter genders and the singular
shall include the plural, and vice versa, and the word “person” shall include any corporation, firm, partnership or
other form of association.

 

11.13      Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same Agreement.

 

11.14      Amendments;
Waivers. This Agreement may be amended, supplemented or changed, and any provision hereof may be waived, only by a written
instrument making specific reference to this Agreement signed by (a) the party against whom enforcement of any such amendment,
supplement, modification or waiver is sought, and (b) the Company. No action taken pursuant to this Agreement, including any investigation
by or on behalf of any party hereto or Company, shall be deemed to constitute a waiver by the Person taking such action of compliance
with any representation, warranty, covenant or agreement contained herein. The waiver by any party hereto and/or Company of a breach
of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver
of any other or subsequent breach. No failure on the part of any party hereto and/or Company to exercise, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right,
power or remedy by such Person preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

 

[REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 15 of 26

     

    

 

SIGNATURE PAGE 

 

TO 

 

EXECUTUVE EMPLOYMENT AGREEMENT
— ELEAZAR OVALLE

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date first set forth.

 

	 	COMPANY
	 	 	 
	 	By: 	/s/
	 	 	B.P. Allaire
	 	 	 
	 	Its:  President & COO
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	/s/
	 	 	Eleazar Ovalle

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 16 of 26

     

    

  

EXHIBIT A

 

Job Description: Vice President
of Geology & Geophysical

 

		1)	Prospect Generation and Maturation

 

		2)	Land/Lease Acquisitions

 

		3)	Seismic Data Acquisition

 

		4)	Regional Geology and Geophysical Trend Analysis

 

		5)	Drill Ready Location Permits

 

		6)	Reserve Bookings and Tracking

 

		7)	Production Performance Analysis

 

		8)	Property Acquisitions and Divestiture (A&D)

 

		9)	Marketing Exploration Deals

 

		10)	Internal Peer Reviews

 

		11)	Third Party Audits

 

		12)	Interim and Year End Reserve Reports

 

1) Prospect Generation and Maturation

 

		·	Build subsurface models using a combination of multiple data sources, including seismic and petrophysical,
combined with a detailed knowledge of structural geology and stratigraphy;

 

		·	Apply resulting geologic models to opportunity evaluations;

 

		·	Perform detailed interpretation and assessment of seismic data, well log data, core data and support
in subsurface pressure prediction;

 

		·	Defining Leads and/or Prospects, estimating risk and resources (probabilistic and deterministic
methods).

 

		·	Ranking Leads and/or Prospects and recommending bids. Establishing the risk critical factor and
proposing additional studies to improve such risk.

 

		·	Prepare/oversee the mapping of Miocene mature geologic play in the GOM Deepwater arena and extrapolating
to Shelf region in approximately 300 feet of water;

 

		·	Ensure salt feeder stock methodology is applied regionally in all prospect generation;

 

		·	Manage weekly progress and meet weekly as a Division to review findings, updates and technology
transfer between Engineering and Geology and Geophysical teams;

 

		·	Integrate petrophysical, drilling, pressure, biostratigraphic, and facies data.

 

		·	Maintain alignment of goals in order to timely finish all prospect mapping;

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 17 of 26

     

    

 

2) Land/Lease Acquisitions

 

		·	Coordinate with Engineering and Land teams to designate necessary land acquisition acreage for
project is in proper documentation for Land team such that the proper strategy can be employed to acquire mineral rights;

 

3) Seismic Data Acquisition

 

		·	Perform detailed interpretation of 2D and 3D Seismic data over complex subsurface structures to
better understand the stratigraphy, structural geology and lithological variability of an area, and to determine prospectivity
and regional context;

 

		·	Extract 3D seismic data properties to quantitatively support geologic interpretations;

 

		·	Designate GOM Shelf 3-D seismic data coverage required to effectively evaluate the existing prospect
inventory and any other potential prospects;

 

		·	Provide geological and rock property input to the processing geophysics teams for the purposes
of processing and refining licensed 3D seismic data, if any;

 

		·	Incorporate seismic data into the prospect work flow and delegate regions of study and analysis
to G&G team.

 

4) Regional Geology and Geophysical Trend Analysis

 

		·	Build, maintain and leverage unique understanding of focus basins, stratigraphic intervals, hydrocarbon
systems and competitor activity outside our assets to describe the competitor environment in a geologic context and identify opportunities
ahead of the competition;

 

		·	Conduct subsurface studies critical to the extensive preparation phase of deepwater wells offshore,
and provide real-time support to operations teams during drilling;

 

		·	Prepare well data panels to communicate the stratigraphic relationships and diversity across areas
of interest;

 

		·	Oversee regional G&G technical work to ensure proper analogue work in regard to sand deposition,
salt velocity, feeder stock methodology and proven hydrocarbon systems;

 

		·	Supervise petrophysical consulting work regionally to tie in reservoir properties with seismic
signatures.

 

5) Drill Ready Location Permits

 

		·	Coordinate with Engineering, Land and Permit teams to ensure proper Geology and Geophysical documentation
is done as per Federal offshore regulations;

 

		·	Assist Drilling team in permitting multiple locations to accommodate any environmental or geologic
changes that may arise.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 18 of 26

     

    

 

6) Reserve Bookings and Tracking

 

		·	Coordinate with the Engineering team to ensure all required geologic mapping and data is made available
to maximize proved and probable reserve bookings;

 

7) Production Performance Analysis

 

		·	Assist Engineering team in any Geology and Geophysical data/mapping to complete production performance
analysis;

 

8) Property Acquisitions and Divestitures (A&D)

 

		·	Attend data rooms with intent of evaluating seismic data set, upside drilling potential, confirmation
of proved and probable reserves via due diligence Geology and Geophysical work;

 

		·	Participate in any company divestitures analyses and present geologic overview of project in question;

 

		·	Assist in any PhdWin1 economic modeling exercises by the Engineering team. Supply Geology
and Geophysical support data to support the project;

 

9) Marketing Exploration Deals

 

		·	Supervise marketing of exploration prospects to prospective client via Land team;

 

		·	Oversee technical presentation of Geology and Geophysical team during exploration meetings;

 

		·	Oversee technical due diligence to ensure all Geology and Geophysical client questions/issues are
address and follow up formal responses are prepared and delivered email and /or verbal;

 

10) Internal Peer Reviews

 

		·	Supervise roundtable in-house technical peer reviews on prospects prior to marketing to clients.
 Engineering, Land and Permit teams required to attend such that all issues are discussed and debated.  Substantial issues
will be documented and resolved immediately;

 

		·	Ensure with VP Exploration that risk assessment/mitigation and resource distribution which are
the key critical parameters will be debated thoroughly.  This needs to be dealt with as an iterative process until all issues
are resolved and ultimately documented.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 19 of 26

     

    

 

11) Third Party Audits

 

		·	Supervise along with VP Exploration any third party audits of proved reserves.  Mandatory
year-end requirement but as directed by Foothills Board of Directors.

 

		·	Ensure all Geology and Geophysical technical work to include structural mapping, amplitude AVO
work, seismic horizon picks, salt velocity models, etc. are made available to Engineering team to formally complete necessary technical
work required by auditors.

 

12) Interim and Year End Reserve Reports

 

		·	Ensure all required Geology and Geophysical technical data is supplied to Engineering team such
timely assessment of proved reserves & cash flow models can be generated;

 

		·	Supervise along with VP Exploration any formal presentations of reserve reports to Foothills Board
of Directors as requested;

 

		·	Ensure required Geology and Geophysical technical documentation is finalized at the request of
the VP Exploration;

 

1PHDWin
is a full-featured, completely integrated economics and decline curve software package that offers a complete solution to manage,
organize, and evaluate reserves and economics.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 20 of 26

     

    

 

 

EXHIBIT B

 

Approved Entities &
Activities

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 21 of 26

     

    

 

EXHIBIT C

 

Holdings of 5% or More

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 22 of 26

     

    

 

SCHEDULE 3.4

 

Division Wide Incentive
Bonus for New Discoveries

 

In order to qualify for Division-Wide Incentive
Bonus for New Discoveries detailed in Section 3.4, Executive must submit a detailed description of the project via email to the
Board or such other person or persons as may be designated by the Board, and a written declaration describing the project they
are working on, details of the project, start date, other team members working on the project (if any) and the project’s
end goals. In the event more than one party files a written declaration per the above for the same project, precedence will be
given based on the timing of submission of such written declaration.

 

Some assets or projects may automatically be
disqualified from this bonus incentive if other Company executives or directors are already working on the same project.

 

The VP of Exploration and VP of Geology &
Geophysical shall submit recommendations to the Compensation Committee of the Board for the distribution and allocation of these
division-wide bonus incentives amongst members of that division and the Compensation Committee of the Board shall approve these
recommendations. In the event of any dispute regarding the division and distribution of this incentive bonus amongst members of
the Exploration Division, the Compensation Committee of the Board shall make a final determination.

 

For Executive to be eligible to receive the
division wide bonus incentives described in Section 3.4, Executive must remain continuously employed by the Company for a period
of 90 days following any New Discovery. Should Executive’s employment with the Company be terminated, whether for Cause or
without Cause, prior to such date, then Executive shall forfeit any bonus incentives due to them.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 23 of 26

     

    

 

SCHEDULE 3.5

 

Division Wide Incentive
Bonus for Other Company Projects

 

In order to qualify for Division-Wide Incentive
Bonus for Other Company Projects detailed in Section 3.5, Executive must submit a detailed description of the project via email
to the Board or such other person or persons as may be designated by the Board, and a written declaration describing the project
they are working on, details of the project, start date, other team members working on the project (if any) and the project’s
end goals. In the event more than one party files a written declaration per the above for the same project, precedence will be
given based on the timing of submission of such written declaration.

 

Some assets or projects may automatically be
disqualified from this bonus incentive if other Company executives or directors are already working on the same project.

 

The VP of Exploration and VP of Geology &
Geophysical shall submit recommendations to the Compensation Committee of the Board for the distribution and allocation of these
division-wide bonus incentives amongst members of that division and the Compensation Committee of the Board shall approve these
recommendations. In the event of any dispute regarding the division and distribution of this incentive bonus amongst members of
the Exploration Division, the Compensation Committee of the Board shall make a final determination.

 

For Executive to be eligible to receive the
division wide bonus incentives described in Section 3.5, Executive must remain continuously employed by the Company for a period
of at least 366 days following that well’s IP date, which is the dated used to calculate the 15-day Moving Average
Stock price for the calculation of stock options to be awarded under this incentive. Should Executive’s employment with the
Company be terminated, whether for Cause or without Cause, prior to such date, then Executive shall forfeit any bonus incentives
for other company projects due to them.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 24 of 26

     

    

 

SCHEDULE 3.6

 

Finders Bonus Incentives

 

For purposes of this Agreement, “Found”
shall mean any Deals sourced by executive or through executive’s network exclusively, which shall be documented with a written
declaration in the form of an email sent to the Board or such other person or persons as may be designated by the Board, introducing
the Deal as a Deal sourced exclusively by them or in the case of Deals sourced jointly by Executive and another member of the Exploration
Division, as a deal sourced jointly with the other member or members identified in the declaration.

 

In the event more than one party files a written
declaration per the above for the same project, precedence will be given based on the timing of submission of such written declaration
and the nature of relationship with the seller. The Compensation Committee of the Board may decide to split or allocate this bonus
incentive at its sole discretion.

 

Some assets or projects may automatically be
disqualified from this bonus incentive if the assets are located in a working area where the Company already has a strategic roll-up
plan in place and/or if other Company executives or directors are already working on the same asset or project.

 

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 25 of 26

     

    

 

SCHEDULE 3.7

 

Paid Holidays

 

2016 Holidays

 

	Day	 	Date	 	Holiday
	Friday	 	January 1	 	New Year's Day
	Monday	 	May 30	 	Memorial Day
	Monday	 	July 4	 	Independence Day
	Monday	 	September 5	 	Labor Day
	Thursday	 	November 24	 	Thanksgiving Day
	Monday	 	December 26**	 	Christmas Day

  

2017 Holidays

 

	Day	 	Date	 	Holiday
	Monday	 	January 2*	 	New Year's Day
	Monday	 	May 29	 	Memorial Day
	Tuesday	 	July 4	 	Independence Day
	Monday	 	September 4	 	Labor Day
	Thursday	 	November 23	 	Thanksgiving Day
	Monday	 	December 25	 	Christmas Day

  

Holiday
Calendar

 

	Holiday	 	Official Date
	New Year's Day	 	January 1
	Memorial Day	 	Last Monday in May
	Independence Day	 	July 4
	Labor Day	 	First Monday in September
	Thanksgiving Day	 	4th Thursday in November
	Christmas Day	 	December 25

  

    
	Initials: 	________      _______	 
	 	Executive     Company	Page 26 of 26

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