Document:

Exhibit 10.1

 

WESTERN
CAPITAL RESOURCES, INC.

 

a Minnesota corporation

 

2015
STOCK INCENTIVE PLAN

 

(FEBRUARY
6, 2015)

 

    	 

    	 

    

 

WESTERN
CAPITAL RESOURCES, INC.

 

2015
STOCK INCENTIVE PLAN

 

1.          Purpose.
The purpose of the 2015 Stock Incentive Plan (the “Plan”) of Western Capital Resources, Inc., a Minnesota corporation
(the “Company”), is to increase shareholder value and to advance the interests of the Company by furnishing
a variety of economic incentives (“Incentives”) designed to attract, retain and motivate employees, certain
key consultants and directors of the Company. Incentives may consist of opportunities to purchase or receive shares of common
stock, no par value per share, of the Company (“Common Stock”) or other incentive awards on terms determined
under this Plan.

 

2.          Administration.
The Plan shall be administered by the Board of Directors of the Company (the “Board of Directors”) or by a
stock option or compensation committee of the Board of Directors (the “Committee,” which term is used
throughout this Plan to refer to either the Board of Directors or a Committee—whichever is administering the Plan from time
to time hereunder). If administered by a committee of the Board of Directors, the Committee shall consist of not less than two
directors of the Company and shall be appointed from time to time by the Board of Directors. During any time period during which
the Company has a class of equity securities registered under Section 12 of the Securities Exchange Act of 1934 (including the
regulations thereunder, the “1934 Act”), each member of the Committee shall be (a) a “non-employee
director” within the meaning of Rule 16b-3 of the 1934 Act (a “Non-Employee Director”), and (b)
an “outside director” within the meaning of Section 162(m) under the Internal Revenue Code of 1986 and the regulations
promulgated thereunder (collectively, the “Code”). The Committee shall have complete authority to award Incentives
under the Plan, to interpret the Plan, and to make any other determination which it believes necessary and advisable for the proper
administration of the Plan. The Committee’s decisions and matters relating to the Plan shall be final and conclusive on
the Company and its participants. If at any time there is no stock option or compensation committee, the term “Committee,”
as used in the Plan, shall refer to the Board of Directors as a whole.

 

3.          Eligible
Participants. Officers of the Company, employees of the Company or its subsidiaries, members
of the Board of Directors, and consultants or other independent contractors who provide services to the Company or its subsidiaries
shall be eligible to receive Incentives under the Plan when designated by the Committee. Participants may be designated individually
or by groups or categories (for example, by pay grade) as the Committee deems appropriate. Participation by officers of the Company
or its subsidiaries and any performance objectives relating to such officers must be approved by the Committee. Participation
by others and any performance objectives relating to others may be approved by groups or categories (for example, by pay grade)
and authority to designate participants who are not officers and to set or modify such targets may be delegated.

 

4.          Types
of Incentives. Incentives under the Plan may be granted in any one or a combination of the following forms: (a) incentive
stock options and non-statutory stock options; (b) stock appreciation rights (“SARs”); (c) stock awards; (d)
restricted stock; (e) restricted stock units; and (f) performance shares. Subject to the specific limitations provided in
this Plan, payment of Incentives may be in the form of cash, Common Stock or combinations thereof as the Committee shall determine,
and with such other restrictions as it may impose.

 

    	 

    	 

    

 

5.          Shares
Subject to the Plan.

 

5.1.          Number
of Shares. Subject to adjustment as provided in Section 9.6, the number of shares of Common
Stock issuable under the Plan shall not exceed 100,000 shares of Common Stock. Shares of Common Stock issued under the Plan or
subject to outstanding Incentives will be applied to reduce the maximum number of shares of Common Stock remaining available for
issuance under the Plan. Any shares of Common Stock subject to SARs granted under this Plan shall be counted in full
against the above-indicated share limit, regardless of the number of shares of Common Stock actually issued upon the exercise
of such SARs.

 

5.2.          Cancellation.
If any Incentive granted hereunder (including without limitation any stock option, SAR or restricted stock unit) expires or is
terminated or canceled unexercised as to any shares of Common Stock, such shares may again be issued under the Plan either pursuant
to stock options, SARs, restricted stock units, or otherwise. If shares of Common Stock are issued pursuant to a stock award,
as restricted stock, or as performance shares) and thereafter are forfeited or reacquired by the Company pursuant to rights reserved
upon issuance thereof, such forfeited and reacquired shares may again be issued under the Plan, either pursuant to a stock award,
as restricted stock, as performance shares, or otherwise. The Committee may also determine to cancel, and agree to the cancellation
of, Incentives in order to make a participant eligible for the grant of an Incentive at a lower exercise price than the Incentive
to be canceled.

 

5.3.          Type
of Common Stock. Common Stock issued under the Plan in connection with Incentives may be authorized
and unissued shares or, if so designated by the Committee, may be treasury stock.

 

5.4.          Limitation
on Certain Grants. No person shall receive grants of stock options and SARs under the Plan that
exceed, in the aggregate, 100,000 shares of Common Stock during any one fiscal year of the Company.

 

6.          Stock
Options. A stock option is a right to purchase shares of Common Stock from the Company. Each
stock option granted by the Committee under this Plan shall be subject to the following terms and conditions:

 

6.1.          Price.
The option price per share shall be determined by the Committee, subject to adjustment under Section 9.6.

 

6.2.          Number.
The number of shares of Common Stock subject to a stock option shall be determined by the Committee, subject to adjustment as
provided in Section 9.6. The number of shares of Common Stock subject to a stock option shall be reduced in the same proportion
that the holder thereof exercises an SAR if any SAR is granted in conjunction with or related to the stock option.

 

6.3.          Duration
and Time for Exercise. Subject to earlier termination as provided in Section 9.3, the term of
each stock option shall be determined by the Committee but shall not exceed ten years and one day from the Grant Date, as that
term is defined in Section 9.15 below. Each stock option shall become exercisable at such time or times during its term as shall
be determined by the Committee at the time of grant. The Committee may accelerate the exercisability of any stock option. Subject
to the first sentence of this paragraph, the Committee may extend the term of any stock option to the extent provided in Section
9.4.

 

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6.4.          Manner
of Exercise. A stock option may be exercised, in whole or in part, by giving written notice
to the Company, specifying the number of shares of Common Stock to be purchased and accompanied by the full purchase price for
such shares. The option price shall be payable: (a) in United States dollars upon exercise of the option and may be paid by cash,
uncertified or certified check or bank draft; (b) unless otherwise provided in the option agreement, by delivery of shares of
Common Stock in payment of all or any part of the option price, which shares shall be valued for this purpose at the Fair Market
Value on the date such option is exercised; or (c) unless otherwise provided in the option agreement, by instructing the Company
to withhold from the shares of Common Stock issuable upon exercise of the stock option shares of Common Stock in payment of all
or any part of the exercise price and/or any related withholding tax obligations consistent with Section 9.8, which shares shall
be valued for this purpose at the Fair Market Value or in such other manner as may be authorized from time to time by the Committee.
Prior to the issuance of shares of Common Stock upon the exercise of a stock option, a participant shall have no rights as a shareholder.

 

6.5.          Incentive
Stock Options. Notwithstanding anything in the Plan to the contrary, the following additional
provisions shall apply to the grant of stock options which are intended to qualify as “Incentive Stock Options,”
as such term is defined in Code Section 422:

 

(a)          The
aggregate Fair Market Value (determined as of the time the option is granted) of the shares of Common Stock with respect to which
Incentive Stock Options are exercisable (i.e., vested) for the first time by any participant during any calendar year (under all
of the Company’s plans) shall not exceed $100,000. The determination will be made by taking Incentive Stock Options into
account in the order in which they were granted. If such excess only applies to a portion of an Incentive Stock Option, the Committee,
in its discretion, will designate which shares will be treated as shares to be acquired upon exercise of an Incentive Stock Option.

 

(b)          Any
option agreement for an Incentive Stock Option under the Plan shall contain such other provisions as the Committee shall deem advisable,
but shall in all events be consistent with and contain all provisions required in order to qualify the options as Incentive Stock
Options.

 

(c)          All
Incentive Stock Options must be granted within ten years from the earlier of the date on which this Plan was adopted by Board of
Directors or the date this Plan was approved by the shareholders.

 

(d)          Unless
sooner exercised, all Incentive Stock Options shall expire no later than ten years after the Grant Date.

 

(e)          The
option price for Incentive Stock Options shall be not less than the Fair Market Value of the Common Stock subject to the option
on the Grant Date.

 

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(f)          If
Incentive Stock Options are granted to any participant who, at the time such option is granted, would own (within the meaning of
Code Section 422) stock possessing more than 10% of the total combined voting power of all classes of stock of the employer corporation
or of its parent or subsidiary corporation, (i) the option price for such Incentive Stock Options shall be not less than 110% of
the Fair Market Value of the Common Stock subject to the option on the Grant Date and (ii) such Incentive Stock Options shall expire
no later than five years after the Grant Date.

 

7.          Stock
Appreciation Rights. An SAR is a right to receive, without payment to the Company, a number
of shares of Common Stock, the amount of which is determined pursuant to the formula set forth in Section 7.5. An SAR may be granted
(a) with respect to any stock option granted under this Plan, either concurrently with the grant of such stock option or at such
later time as determined by the Committee (as to all or any portion of the shares of Common Stock subject to the stock option),
or (b) alone, without reference to any related stock option. Each SAR granted by the Committee under this Plan shall be subject
to the following terms and conditions:

 

7.1.          Price.
The exercise price per share of any SAR granted without reference to a stock option shall be determined by the Committee, subject
to adjustment under Section 9.6. Notwithstanding the foregoing sentence, except as permitted under Section 9.16, the exercise
price per share shall not be less than the Fair Market Value of the Common Stock on the Grant Date unless the SAR satisfies the
provisions of Code Section 409A.

 

7.2.          Number.
Each SAR granted to any participant shall relate to such number of shares of Common Stock as shall be determined by the Committee,
subject to adjustment as provided in Section 9.6. In the case of an SAR granted with respect to a stock option, the number of
shares of Common Stock to which the SAR relates shall be reduced in the same proportion that the holder of the option exercises
the related stock option. Notwithstanding the foregoing, the limitation on grants under Section 5.4 shall apply to grants of SARs
under the Plan

 

7.3.          Duration.
Subject to earlier termination as provided in Section 9.3, the term of each SAR shall be determined by the Committee but shall
not exceed ten years and one day from the Grant Date. Unless otherwise provided by the Committee, each SAR shall become exercisable
at such time or times, to such extent and upon such conditions as the stock option, if any, to which it relates is exercisable.
The Committee may in its discretion accelerate the exercisability of any SAR. Subject to the first sentence of this paragraph,
the Committee may extend the term of any SAR to the extent provided in Section 9.4.

 

7.4.          Exercise.
An SAR may be exercised, in whole or in part, by giving written notice to the Company, specifying the number of SARs which the
holder wishes to exercise. Upon receipt of such written notice, the Company shall, within 90 days thereafter, deliver to the exercising
holder certificates for the shares of Common Stock or cash or both, as determined by the Committee, to which the holder is entitled
pursuant to Section 7.5.

 

7.5.          Issuance
of Shares Upon Exercise. The number of shares of Common Stock which shall be issuable upon the
exercise of an SAR shall be determined by dividing:

 

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(a)          the
number of shares of Common Stock as to which the SAR is exercised multiplied by the amount of the appreciation in such shares (for
this purpose, the “appreciation” shall be the amount by which the Fair Market Value of the shares of Common Stock subject
to the SAR on the exercise date exceeds (1) in the case of an SAR related to a stock option, the purchase price of the shares of
Common Stock under the stock option or (2) in the case of an SAR granted alone, without reference to a related stock option, an
amount which shall be determined by the Committee at the time of grant, subject to adjustment under Section 9.6); by

 

(b)          the
Fair Market Value of a share of Common Stock on the exercise date.

 

No fractional
shares of Common Stock shall be issued upon the exercise of an SAR; instead, the holder of the SAR shall be entitled to receive
a cash adjustment equal to the same fraction of the Fair Market Value of a share of Common Stock on the exercise date or to purchase
the portion necessary to make a whole share at its Fair Market Value on the date of exercise.

 

8.          Stock
Awards and Restricted Stock. A stock award consists of the transfer by the Company to a participant
of shares of Common Stock, without other payment therefor, as additional compensation for services to the Company. A share of
restricted stock consists of shares of Common Stock which are sold or transferred by the Company to a participant at a price,
if any, determined by the Committee and subject to restrictions on their sale or other transfer by the participant. The transfer
of Common Stock pursuant to stock awards and the transfer and sale of restricted stock shall be subject to the following terms
and conditions:

 

8.1.          Number
of Shares. The number of shares to be transferred or sold by the Company to a participant pursuant
to a stock award or as restricted stock shall be determined by the Committee.

 

8.2.          Sale
Price. The Committee shall determine the price, if any, at which shares of restricted stock
shall be sold to a participant, which may vary from time to time and among participants and which may be below the Fair Market
Value of such shares of Common Stock at the date of sale.

 

8.3.          Restrictions.
All shares of restricted stock transferred or sold by the Company hereunder shall be subject to such restrictions as the Committee
may determine, including, without limitation any or all of the following:

 

(a)          a
prohibition against the sale, transfer, pledge or other encumbrance of the shares of restricted stock, such prohibition to lapse
at such time or times as the Committee shall determine (whether in annual or more frequent installments, at the time of the death,
disability or retirement of the holder of such shares, or otherwise);

 

(b)          a
requirement that the holder of shares of restricted stock forfeit, or (in the case of shares sold to a participant) re-sell back
to the Company at his or her cost, all or a part of such shares in the event of termination of his or her employment or consulting
engagement during any period in which such shares are subject to restrictions; and/or

 

(c)          such
other conditions or restrictions as the Committee may deem advisable.

 

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8.4.          Restrictions.
In order to enforce the restrictions imposed by the Committee pursuant to Section 8.3, the participant receiving restricted stock
shall enter into an agreement with the Company setting forth the conditions of the grant. Shares of restricted stock shall be
registered in the name of the participant and deposited, together with a stock power endorsed in blank, with the Company. Each
such certificate shall bear a legend that refers to the Plan and the restrictions imposed under the applicable agreement. The
Committee may provide that no certificates representing restricted stock be issued until the restriction period is completed.

 

8.5.          End
of Restrictions. Subject to Section 9.5, at the end of any time period during which the shares
of restricted stock are subject to forfeiture and restrictions on transfer, such shares will be delivered free of all restrictions
to the participant or to the participant’s legal representative, beneficiary or heir.

 

8.6.          Rights
of Holders of Restricted Stock. Subject to the terms and conditions of the Plan and subject
further to the terms and conditions of each written agreement evidencing an Incentive, each participant receiving restricted stock
shall have all the rights of a shareholder with respect to shares of stock during any period in which such shares are subject
to forfeiture and restrictions on transfer, including without limitation, the right to vote such shares.

 

9.          General
Provisions.

 

9.1.          Effective
Date. The Plan will become effective upon the date of approval by the Board of Directors (the
“Effective Date”).

 

9.2.          Duration.
The Plan shall remain in effect until all Incentives granted under the Plan have either been satisfied by the issuance of shares
of Common Stock or the payment of cash or been terminated under the terms of the Plan and all restrictions imposed on shares of
Common Stock in connection with their issuance under the Plan have lapsed. No Incentives may be granted under the Plan after the
tenth anniversary of the Effective Date of the Plan.

 

9.3.          Non-Transferability
of Incentives. No stock option, SAR, restricted stock or stock award may be transferred, pledged
or assigned by the holder thereof (except, in the event of the holder’s death, by will or the laws of descent and distribution
to the limited extent provided in the Plan or the Incentive, or pursuant to a qualified domestic relations order as defined by
the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder), and the Company shall not be required
to recognize any attempted assignment of such rights by any participant. Notwithstanding the preceding sentence, stock options
may be transferred by the holder thereof to the holder’s spouse, children, grandchildren or parents (collectively, the “Family
Members”), to trusts for the benefit of Family Members, to partnerships or limited liability companies in which Family
Members are the only partners or shareholders, or to entities exempt from federal income taxation pursuant to Code Section 501(c)(3).
During a participant’s lifetime, a stock option may be exercised only by him or her, by his or her guardian or legal representative
or by the transferees permitted by this Section 9.3.

 

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9.4.          Effect
of Termination or Death. If a participant ceases to be an employee of or consultant to the Company
for any reason, including death or disability, any Incentives may be exercised or shall expire at such times as may be set forth
in the agreement, if any, applicable to the Incentive, or otherwise as determined by the Committee; provided, however, the term
of an Incentive may not be extended beyond the term originally prescribed when the Incentive was granted, unless the Incentive
satisfies (or is amended to satisfy) the requirements of Code Section 409A; and provided further that the term of an Incentive
may not be extended beyond the maximum term permitted under this Plan.

 

9.5.          Restrictions
under Securities Laws. Notwithstanding anything in this Plan to the contrary: (a) the Company
may, if it shall determine it necessary or desirable for any reason, at the time of award of any Incentive or the issuance of
any shares of Common Stock pursuant to any Incentive, require the recipient of the Incentive, as a condition to the receipt thereof
or to the receipt of shares of Common Stock issued pursuant thereto, to deliver to the Company a written representation of present
intention to acquire the Incentive or the shares of Common Stock issued pursuant thereto for his or her own account for investment
and not for distribution; and (b) if at any time the Company further determines, in its sole discretion, that the listing, registration
or qualification (or any updating of any such document) of any Incentive or the shares of Common Stock issuable pursuant thereto
is necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval
of any governmental regulatory body is necessary or desirable as a condition of, or in connection with the award of any Incentive,
the issuance of shares of Common Stock pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive
shall not be awarded or such shares of Common Stock shall not be issued or such restrictions shall not be removed, as the case
may be, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Company.

 

9.6.          Adjustment.
In the event of any recapitalization, stock dividend, stock split, combination of shares or other change in the Common Stock,
the number of shares of Common Stock then subject to the Plan, including shares subject to outstanding Incentives, and the other
numbers of shares of Common Stock provided in the Plan, shall be adjusted in proportion to the change in outstanding shares of
Common Stock. In the event of any such adjustments, the purchase price of any option, the performance objectives of any Incentive,
and the shares of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the extent appropriate, in the discretion
of the Committee, to provide participants with the same relative rights before and after such adjustment.

 

9.7.          Incentive
Plans and Agreements. Except in the case of stock awards, the terms of each Incentive shall
be stated in a plan or agreement approved by the Committee. The Committee may also determine to enter into agreements with holders
of options to reclassify or convert certain outstanding options, within the terms of the Plan, as Incentive Stock Options or as
non-statutory stock options and in order to eliminate SARs with respect to all or part of such options and any other previously
issued options. The Committee shall communicate the key terms of each award to the participant promptly after the Committee approves
the grant of such award.

 

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9.8.          Withholding.

 

(a)          The
Company shall have the right to withhold from any payments made under the Plan or to collect as a condition of payment, any taxes
required by law to be withheld. At any time when a participant is required to pay to the Company an amount required to be withheld
under applicable income tax laws in connection with a distribution of Common Stock or upon exercise of an option or SAR or upon
vesting of restricted stock, the participant may satisfy this obligation in whole or in part by electing (the “Election”)
to have the Company withhold, from the distribution or from such shares of restricted stock, shares of Common Stock having a value
up to the minimum amount of withholding taxes required to be collected on the transaction. The value of the shares to be withheld
shall be based on the Fair Market Value of the Common Stock on the date that the amount of tax to be withheld shall be determined
(“Tax Date”).

 

(b)          Each
Election must be made before the Tax Date. The Committee may disapprove of any Election, may suspend or terminate the right to
make Elections, or may provide with respect to any Incentive that the right to make Elections shall not apply to such Incentive.
An Election is irrevocable.

 

9.9.          No
Continued Employment, Engagement or Right to Corporate Assets. No participant under the Plan
shall have any right, because of his or her participation, to continue in the employ of the Company or any of its subsidiaries
for any period of time or to any right to continue his or her present or any other rate of compensation. Nothing contained in
the Plan shall be construed as giving an employee, a consultant, such persons’ beneficiaries or any other person any equity
or interests of any kind in the assets of the Company or creating a trust of any kind or a fiduciary relationship of any kind
between the Company and any such person.

 

9.10.         Payments
Under Incentives. Payment of cash or distribution of any shares of Common Stock to which a participant
is entitled under any Incentive shall be made as provided in the Incentive. Except as permitted under Section 9.16, payments and
distributions may not be deferred under any Incentive unless the deferral complies with the requirements of Code Section 409A.

 

9.11.         Amendment
of the Plan. The Board of Directors may amend or discontinue the Plan at any time. Nevertheless,
no such amendment or discontinuance shall adversely change or impair, without the consent of the recipient, an Incentive previously
granted. Further, no such amendment shall, without approval of the shareholders of the Company, (a) increase the maximum number
of shares of Common Stock which may be issued to all participants under the Plan, (b) change or expand the types of Incentives
that may be granted under the Plan, (c) change the class of persons eligible to receive Incentives under the Plan, or (d) materially
increase the benefits accruing to participants under the Plan.

 

9.12.         Amendment
of Agreements for Incentives. Except as otherwise provided in this Section 9.12, the terms of
an existing Incentive may be amended by agreement between the Committee and the participant. Notwithstanding the foregoing sentence,
in the case of a stock option or SAR, except as permitted under Section 9.16, no such amendment shall: (a) extend the term of
the Incentive, except as provided in Section 9.4; nor (b) reduce the exercise price per share below the Fair Market Value of the
Common Stock on the date the Incentive was granted, unless, in either case, the amendment complies with the requirements of Code
Section 409A.

 

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9.13.         Sale,
Merger, Exchange or Liquidation. Unless otherwise provided in the agreement for an Incentive,
in the event of (i) an acquisition of the Company through the sale of all or substantially all of the Company’s assets or
(ii) a change in control of at least a majority of the issued and outstanding voting securities of the Company through a merger,
exchange, reorganization or liquidation of the Company or a similar event, all as determined by the Committee in its sole discretion
(collectively, any of the transactions described in clauses (i) and (ii) are referred to as a “Sale Transaction”),
the Committee shall be authorized, in its sole discretion, to take any and all action it deems equitable under the circumstances,
including but not limited to any one or more of the following:

 

(a)          the
Committee may provide that the Plan and all Incentives shall terminate and the holders of (i) all outstanding vested options shall
receive, in lieu of any shares of Common Stock they would be entitled to receive under such options, such stock, securities or
assets, including cash, as would have been paid to such participants if their options had been exercised and such participant had
received Common Stock immediately before such Sale Transaction (with appropriate adjustment for the exercise price, if any), (ii)
SARs that entitle the participant to receive Common Stock shall receive, in lieu of any shares of Common Stock each participant
was entitled to receive as of the date of the Sale Transaction pursuant to the terms of such Incentive, if any, such stock, securities
or assets, including cash, as would have been paid to such participant if such Common Stock had been issued to and held by the
participant immediately before such Sale Transaction, and (iii) any Incentive under this Agreement which does not entitle the participant
to receive Common Stock shall be equitably treated as determined by the Committee;

 

(b)          the
Committee may provide that participants holding outstanding vested Common Stock-based Incentives shall receive, with respect to
each share of Common Stock issuable pursuant to such Incentives as of the effective date of any such Sale Transaction, at the determination
of the Committee, cash, securities or other property, or any combination thereof, in an amount equal to the excess, if any, of
the Fair Market Value of such Common Stock (determined as of any date within ten days before the effective date of such Sale Transaction,
which date shall be selected by the Committee) over the option price or other amount owed by a participant, if any, and that such
Incentives shall be cancelled, including the cancellation without consideration of all options that have an exercise price below
the per-share value of the consideration received by the Company in the Sale Transaction; or

 

(c)          the
Committee may provide that the Plan (or replacement plan) shall continue with respect to Incentives not cancelled or terminated
as of the effective date of such Sale Transaction and provide to participants holding such Incentives the right to earn their respective
Incentives on the same or a substantially equivalent basis (taking into account the Sale Transaction and the number of shares or
other equity issued by such successor entity) with respect to the equity of the entity succeeding the Company by reason of such
Sale Transaction.

 

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The Board of
Directors may restrict the rights of participants or the applicability of this Section 9.13 to the extent necessary to comply with
Section 16(b) of the 1934 Act, the Code or any other applicable law or regulation. The grant of an Incentive award pursuant to
the Plan shall not limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all
or any part of its business or assets.

 

9.14.         Definition
of Fair Market Value. For purposes of this Plan, the “Fair Market Value”
of a share of Common Stock at a specified date shall, unless otherwise expressly provided in this Plan, be the amount which the
Committee determines in good faith to be 100% of the fair market value of such a share as of the date in question. Notwithstanding
the foregoing:

 

(a)          If
such shares are listed on a U.S. securities exchange, then Fair Market Value shall be determined by reference to the last sale
price of a share of Common Stock on such U.S. securities exchange on the applicable date. If such U.S. securities exchange is closed
for trading on such date, or if the Common Stock does not trade on such date, then the last sale price used shall be the one on
the date the Common Stock last traded on such U.S. securities exchange.

 

(b)          If
such shares are publicly traded but are not listed on a U.S. securities exchange, then Fair Market Value shall be determined by
reference to the trading price of a share of Common Stock on such date (or, if the applicable market is closed on such date, the
last date on which the Common Stock was publicly traded), by a method consistently applied by the Committee.

 

(c)          If
such shares are not publicly traded, then the Committee’s determination will be based upon a good faith valuation of the
Company’s Common Stock as of such date, which shall be based upon such factors as the Committee deems appropriate. The valuation
shall be accomplished in a manner that complies with Code Section 409A and shall be consistently applied to Incentives under the
Plan.

 

9.15.         Definition
of Grant Date. For purposes of this Plan, the “Grant Date” of an Incentive shall be the date on which the
Committee approved the award (or, if applicable, the date on which the Committee otherwise approved as the Grant Date for the
award) or, if later, the date on which (a) the participant is no longer able to negotiate the terms of the award and (b) it is
expected that the key terms of the award will be communicated within a relatively short period of time.

 

9.16.         Compliance
with Code Section 409A. The Plan and the agreement for each Incentive shall be interpreted and
administered so as to be exempt from the requirements of Code Section 409A or to comply with such requirements. Notwithstanding
the foregoing, Incentives may be awarded or amended in a manner that does not comply with Code Section 409A, but only if and to
the extent that the Committee specifically provides in written resolutions that the Incentive or amendment is not intended to
comply with Code Section 409A.

 

    	10Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(“Agreement”) is made and entered into effective as of February 9, 2015, by and between Western Capital Resources,
Inc., a Minnesota corporation (“Company”), and Angel Donchev, a resident of the District of Columbia (“Employee”).

 

BACKGROUND 

 

A.           The
Company desires to employ Employee to assist the Company by rendering services on the terms and conditions provided in this Agreement.

 

B.           Employee
desires to render services for the Company as provided herein. Employee will not start working for Company until this Agreement
has been signed.

 

C.           The
success of the Company depends, to a significant extent, upon the Company maintaining the secrecy of its proprietary information.

 

D.           While
employed by the Company, Employee will be entrusted with certain of its most sensitive information. Employee recognizes that it
is important that the Company protect its rights with respect to its confidential information. For the Company’s legitimate
protection, Employee is now willing to make several promises to the Company that reasonably restrict Employee’s activities
after Employee is no longer employed by the Company, and Employee acknowledges and agrees that Employee is receiving adequate and
valuable consideration for making those promises and entering into this Agreement.

 

E.           Prior
to entering into this Agreement, Employee has had sufficient time to consider the Company’s offer and its terms, including
the restrictive covenants contained in this Agreement. Employee enters into this Agreement voluntarily, without coercion or duress.
Employee has had the opportunity to consult with legal counsel of Employee’s choice prior to entering into this Agreement.

 

NOW, THEREFORE, in consideration
of the above premises and the terms and conditions below, the Company and Employee understand and agree as follows:

 

AGREEMENT

 

1.          Employment.

 

a.           Term.
The Company hereby employs Employee, and Employee hereby accepts such employment, for a term commencing as of February 9, 2015
and continuing thereafter for a three-year period through the close of business on February 8, 2018, unless sooner terminated in
accordance with the provisions of Section 5 (the “Term”).

 

    	 

    	 

    

 

b.           Position
and Duties. Employee shall serve as the Chief Investment Officer of the Company, and Employee’s primary duties and responsibilities
in such capacity shall include sourcing deals, leading due-diligence investigations, performing financial evaluations and models,
integrating acquired businesses, assisting with any required financing, strategic planning and modeling, and other duties as may
be assigned to Employee by the Chief Executive Officer of the Company. Employee will duly, loyally and diligently perform all the
duties, responsibilities and requirements to the Company in a timely and proficient manner during Employee’s employment.
Employee shall be based out of Washington D.C., and shall not be required to relocate for the Term of this Agreement.

 

c.           Permitted
Activities. Notwithstanding Employee’s duties and obligations described herein, the parties wish to make it clear that
Employee may: (i) serve on industry, trade, civic or charitable boards or committees; as well as continue to serve on the boards
of directors of Swift Spinning, Inc. and AlphaGraphics, Inc.; (ii) engage in charitable activities and community affairs; and (iii)
manage his own personal investments, including but not limited to real estate, as long as none of the above such activities materially
interfere with the performance of Employee’s duties and responsibilities.

 

2.          Employee’s
Compensation and Benefits.

 

a.           Base
Salary. Employee will receive a gross annualized base salary of $235,000, less applicable legally required withholdings and
such other deductions as Employee voluntarily authorizes in writing. The base salary shall be payable in a manner that is consistent
with the Company’s ordinary payroll practices.

 

b.           Bonus.
Employee will be eligible to receive an annual bonus with an initial target of $200,000 as determined in the sole discretion of
the Board of Directors, and based on the acquisition model attached hereto as Exhibit A.

 

c.           Stock
Options. Upon the execution of this Agreement, Employee will receive a qualified option (incentive stock option) to purchase
65,000 shares of the Company’s common stock (the “Option”) at an exercise price of $6.00 per share. The Option
shall vest as follows: 22,000 shares of the Option will vest on the close of business on February 8, 2016, 21,000 shares of the
Option will vest on the close of business on February 8, 2017, and the remaining 22,000 shares of the Option will vest on the close
of business on February 8, 2018. The Option will be evidenced and governed by the terms of a Stock Option Agreement, in the form
attached hereto as Exhibit B, to be executed and delivered by the parties contemporaneously with this Agreement or as soon
as reasonably practicable thereafter. The Option will be issued under, and governed by the terms of, a new stock incentive plan
to be adopted by the Board of Directors concurrently herewith. The Company will take such actions as are necessary to cause such
plan to be approved by its shareholders within the 12-month period after its adoption by the Board of Directors, so as to ensure
compliance with the incentive stock option requirements of Section 422 of the Internal Revenue Code of 1986, as amended.

 

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d.           Health
Insurance. Employee and his immediate family members will be entitled to participate in the Company’s health insurance
plan that the Company offers to employees on the terms and conditions governing such plan.

 

e.           Vacation.
Employee is eligible to take up to four weeks of paid vacation days in each calendar year. Any vacation time not taken by Employee
during the calendar year may not be carried forward into any succeeding calendar year.

 

f.            Expense
Reimbursement. Employer shall promptly reimburse Employee for reasonable out-of-pocket expenses incurred on behalf of Employer
by Employee in connection with the performance of Employee’s duties hereunder, including but not limited to monthly cellular
phone bills, Internet service provider bills, printer and office supplies and business travel-related expenses. Employee shall
endeavor to book flights in advance and stay in reasonably priced hotels.

 

3.          Company
Property. Employee understands that during Employee’s employment with the Company, Employee will be provided with, use
and/or possess Company property. Company property includes but is not limited to internal memoranda, records, forms, computer programs,
contacts, phone numbers, customer lists, customer data or information, and other proprietary information pertaining to the Company’s
business. Upon termination of Employee’s employment or upon the written request of the Company, Employee shall promptly return
all Company property to the Company in good condition. Employee agrees not to retain, download, divert or transfer in any manner
any files, documents, information or other data that are the property of the Company. Employee will not retain any copies or reproductions
of records, documents, data or other tangible items of Company.

 

4.          Nondisclosure
of Confidential Information.

 

a.           Definition.
For purposes of this Agreement, “Confidential Information” means any and all sensitive, confidential, proprietary and
trade secret information concerning or relating to the Company, including any information which derives independent economic value
from not being generally known to or readily ascertainable by proper means by other persons who can obtain economic value from
its disclosure or use. Examples of Confidential Information which are not to be disclosed or used except as required by Employee’s
employment with the Company or as expressly authorized in writing by the Company include, but are not limited to, the following:
(i) information concerning actual or potential customers, including their identities, contact information, financial information
concerning their actual or prospective business operations, identity and quantity of products or services provided by the Company,
any unpublished written materials furnished by or about them to the Company, pricing information relating to products, services
and materials the Company provides to customers, customer cost information, and other customer information, data, and documents;
(ii) information encompassed in all proposals, marketing and sales plans, financial information, processes and methods by
which products or services are provided, information relating to the cost and pricing of the Company of labor and materials provided
to customers, and all methods, concepts, know-how or ideas in or related to the business of the Company; and (iii) information
concerning the Company’s ownership, management, financial condition, financial operations, business activities or practices,
sales activities, marketing activities or plans, research and development, pricing practices, legal matters, and strategic business
plans including acquisitions. Failure to mark any of the Confidential Information as confidential will not affects its status as
Confidential Information.

 

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b.           Confidential
Information. Employee shall keep confidential and not disclose to anyone or use, either during or after Employee’s employment
with the Company, any Confidential Information of the Company except as required by Employee’s employment with the Company
or as expressly authorized in writing by the Company. The contractual obligations contained herein shall be in addition to any
and all obligations of confidentiality imposed by law. The obligations of this Section shall continue in full force and effect
for three years after the termination of this Agreement and the termination of Employee’s employment with the Company.

 

c.           Exceptions.
The foregoing obligations of confidentiality shall not apply to any information that is generally known outside the Company or
readily ascertainable by proper means (for purposes hereof, “proper means” does not include obtaining information by
means of court order or subpoena or other judicial or administrative means) or that hereafter becomes generally known outside of
the Company through no fault of Employee or by the Company’s voluntary disclosure. Confidential Information is not considered
to be generally known or readily ascertainable because such has been disseminated subject to an obligation to keep such information
confidential.

 

d.           Ownership
and Use of Confidential Information. Employee acknowledges that the Company shall at all times be and remain the owner of all
Confidential Information disclosed to and acquired by Employee during Employee’s employment with the Company. Employee acknowledges
that Employee may use Confidential Information only for the limited purposes for which it was disclosed under this Agreement and
Employee’s employment with the Company. Employee shall use Employee’s best efforts to preserve the confidentiality
of such Confidential Information. Employee agrees not to remove from the premises of the Company or the sites at which Employee
works, except as an employee of the Company in pursuit of the business of the Company or except as specifically permitted in writing
by the Company, any document or object containing or reflecting Confidential Information. Employee recognizes that all such documents
and objects are the sole and exclusive property of the Company and Employee shall safeguard such information and property against
disclosure, theft or damage.

 

e.           Return
of Confidential Information. Upon termination of employment or at such earlier time as the Company may request in writing,
Employee shall immediately return to the Company all Confidential Information and shall not retain copies of such Confidential
Information.

 

5.          Termination.
Employee’s employment will terminate prior to the end of the Term in any of the following circumstances:

 

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a.           Resignation.
Employee may terminate Employee’s employment upon at least 30 days’ advance written notice for any reason. In the Company’s
sole discretion, the Company may relieve Employee of Employee’s duties and responsibilities any time during the notice period
while continuing to provide Employee with Employee’s pay and benefits through the last day of the notice period.

 

b.           Death.
Employee’s employment will automatically terminate upon Employee’s death.

 

c.           Disability.
The Company may terminate Employee’s employment due to disability, meaning that Employee has a physical or mental impairment
that substantially limits one or more major life activities and is such that Employee, even with reasonable accommodations, cannot
perform the essential functions of Employee’s position.

 

d.           Without
Cause. The Company may terminate Employee’s employment without “Cause,” defined below, upon at least 30 days’
advance written notice.

 

e.           Cause.
The Company may terminate Employee’s employment immediately for “Cause” at any time during the Term. For purposes
of this Agreement, the term “Cause” shall mean any of the following:

 

		1)	Employee’s theft, dishonesty or fraud which has, or could reasonably be expected to have,
an adverse effect on the Company, its business, or interests as determined in the Company’s sole discretion;

 

		2)	Employee embezzles or misappropriates assets of the Company;

 

		3)	Employee fails to follow the reasonable and lawful instructions of the Chief Executive Officer
of the Company; provided, however, the Company will not have Cause if Employee has cured, to the Company’s satisfaction,
such failure(s) within 30 days after Employee shall have received written notice from the Company of the particulars of such failure
(s);

 

		4)	The Company has a reasonable belief Employee engaged in some form of conduct prohibited by Company
policy or the law;

 

		5)	Employee fails to devote the working time, attention, skill and efforts to the business of the
Company as required by Section 1 of this Agreement in a manner acceptable to the Company; provided, however, the Company
will not have Cause if Employee has cured, to the Company’s satisfaction, such failure within 30 days after Employee shall
have received written notice from the Company of the particulars of such failure;

 

		6)	Employee breaches a fiduciary duty or responsibility to the Company after 30 days’ advance
written notice; provided, however, the Company will not have Cause if Employee has cured, to the Company’s satisfaction,
such breach within 30 days after Employee shall have received written notice from the Company of the particulars of such breach;
or

 

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		7)	The serious misconduct or gross negligence of Employee that results or could reasonably be expected
to result in damage to the Company, its business, or interests.

 

6.          Indemnity.
The Company will indemnify, defend and hold harmless the Employee, to the maximum extent permitted by applicable law, against all
costs, charges and expenses incurred or sustained by Employee in connection with any action, suit or proceeding (including reasonable
attorneys’ fees) to which Employee may be made a party by reason of Employee’s employment with Company or of any subsidiary
or affiliate of the Company. Employee shall also be covered under a directors and officers liability insurance policy paid for
by the Company to the extent that the Company maintains such a liability insurance policy now or in the future.

 

7.          Notices.
All notices or other communications hereunder will be in writing and will be deemed given on (i) the day given in person, (ii)
the next business day if sent by nationally recognized overnight delivery service to the party at the address set forth below or
to such other addresses as will be specified by notice to the other party hereunder, or (iii) the next business day if sent by
email or facsimile transmission with electronic confirmation obtained:

 

If to the Company:

 

John Quandahl

Chief Executive Officer

Western Capital Resources,
Inc.

11550 I Street, Suite 150

Telephone Number: (402)
551-8888

Fax Number: (402) 733-8545

Email: johnq@wcrimail.com

 

If to Employee:

 

Angel Donchev

2410 17th Street NW, Apartment
308

Washington, D.C. 20009

Telephone Number: (202)
531-2021

Fax Number: (240) 223-1331

Email: angel@donchev.com

 

8.          Reasonableness
of Restrictions. Employee agrees that the restrictions set forth in this Agreement are reasonable and do not unduly restrict
Employee’s post-employment activities.

 

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9.          Employee’s
Representations. Employee hereby represents and certifies that Employee is not subject to any other agreement or restrictive
covenant that Employee violates by entering into employment with the Company. Further, Employee represents that no conflict of
interest or breach of Employee’s fiduciary duties will result by entering into employment with and performing duties for
the Company. Employee further agrees and certifies that Employee will not use or disclose to the Company any confidential, proprietary
or trade secret information belonging to another individual or entity which may not properly be used or disclosed by Employee to
the Company. Notwithstanding the above, the Company acknowledges that Employee was previously an employee of Blackstreet Capital
Management, LLC (“BCM”) and is party to various agreements with BCM and its affiliates. For the avoidance of doubt,
Employee’s employment with BCM shall terminate on February 8, 2015, but any remaining agreements related to investments and
carried interest in BCM, its affiliated funds, their general partners, and/or operating companies shall stay in place. The Company
also acknowledges that Employee is a shareholder of Ladary Inc., an entity which currently leases two properties to the Company
or its subsidiaries.

 

10.         Remedies.
The Company and Employee agree and acknowledge that a violation of this Agreement will cause irreparable harm and damage to the
Company which may not be compensated by the receipt of money damages. Thus, in addition to any other relief afforded by law, including
damages sustained by a breach of this Agreement and without any necessity of proof of actual damage, the Company will have the
right to enforce this Agreement by specific remedies, which will include, among other things, temporary and permanent injunctions
to stop the breach, threatened breach, or anticipated breach of this Agreement, it being the understanding of the parties that
both damages and injunctions will be proper modes of relief and are not to be considered as alternative remedies. With regard to
any proceeding filed or brought by any of the parties against another party, the “prevailing party,” as defined below,
shall be entitled to recover all of its reasonable costs and expenses incurred in connection with such dispute, including expenses,
court costs, witness fees and legal and accounting fees. The term “prevailing party” means that party whose position
is substantially upheld in a final and non-appealable judgment rendered in such proceeding.

 

11.         Entire
Agreement. This is the entire agreement between the parties with respect to the matters addressed herein. There are no other
agreements, written or verbal, between the parties concerning these matters.

 

12.         Amendments.
This Agreement may be amended or supplemented only in writing and signed by both the Employee and by a duly authorized representative
of the Company.

 

13.         Governing
Law and Venue. The validity, enforceability, construction and interpretation of this Agreement shall be governed by the laws
of the State of Nebraska without regard to its conflicts-of-law principles. Any dispute arising out of or related to this Agreement,
or any breach or alleged breach hereof, shall be exclusively decided by a state or federal court in the State of Nebraska. Employee
irrevocably waives Employee’s right, if any, to have any disputes between Employee and the Company arising out of or related
to this Agreement decided in any jurisdiction or venue other than a court in the State of Nebraska, Douglas County. Employee
hereby (a) waives any objection that Employee might have now or hereafter to the foregoing jurisdiction and venue of any such litigation,
action or proceeding, (b) irrevocably submits to the exclusive jurisdiction of any such court set forth above in any such litigation,
action or proceeding, and (c) waives any claim or defense of inconvenient forum.

 

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14.         Blue
Pencil Doctrine. In the event that any one or more of the provisions of this Agreement or any application thereof, shall be
found to be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions
and any application thereof, shall not in any way be affected or impaired thereby. To the extent any provision of this Agreement
is judicially determined to be unenforceable, a court of competent jurisdiction may reform any such provision to make it enforceable.
The provisions of this Agreement shall, where possible, be interpreted so as to sustain their legality and enforceability.

 

15.         Successors
and Assigns. The Company may assign this Agreement to, and this Agreement will bind and inure to the benefit of, any parent,
subsidiary, affiliate or successor of the Company. Employee will execute any agreement necessary or appropriate for this Agreement
to be assigned to the assignee. This Agreement will not be assignable by Employee.

 

16.         Survival
of Provisions. The provisions of this Agreement relating to Employee’s confidentiality obligations, set forth in Sections
4 and 10, will survive the termination of this Agreement and/or Employee’s employment with the Company and will remain in
full force and effect for three years thereafter.

 

17.         Counterparts;
Delivery. This Agreement may be executed in any number of counterparts, and each such counterpart hereof will be deemed to
be an original instrument, and all such counterparts together will constitute but one agreement. Valid and binding signatures to
this Agreement may be delivered by electronic transmission, such as facsimile and .PDF.

 

18.         No
Waiver. No term or condition of this Agreement will be deemed to have been waived nor shall there be any estoppel to enforce
any provision hereof, except by a written instrument executed by the party charged with waiver or estoppel. A party’s delay,
waiver or failure to enforce any of the terms of this Agreement or any similar agreement in one instance shall not constitute a
waiver of its rights hereunder with respect to other violations of this or any other agreement.

 

* * * * * * *

 

    	8

    	 

    

 

IN WITNESS WHEREOF, the
parties have executed this Agreement on the date first stated above.

 

	ANGEL DONCHEV	WESTERN CAPITAL RESOURCES, INC.

 

	 	 	By:	 
	 	 	 	John Quandahl
	 	 	 	Chief Executive Officer

 

    	9

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