Document:

Exhibit 10.01

 

INDEMNIFICATION AGREEMENT

 

            This
Indemnification Agreement ("Agreement") is entered into as of the [*] day of [*], 20[*] by and between Inspyr
Therapeutics, Inc. a Delaware corporation (the “Company”), and [*] ("Indemnitee").

 

RECITALS

 

            A.     The
Company and Indemnitee recognize the continued difficulty in obtaining liability insurance for the Company's directors and officers,
the significant increases in cost of such insurance and the general reductions in the coverage of such insurance.

 

            B.     The
Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors and
officers to expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely
limited.

 

            C.     The
Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company and,
in part, in order to induce Indemnitee to continue to provide services to the Company, wishes to provide for the indemnification
and advancing of expenses to Indemnitee to the maximum extent permitted by law.

 

            D.    In
view of the considerations set forth above, the Company desires that Indemnitee be indemnified by the Company as set forth herein.

 

            NOW,
THEREFORE, the Company and Indemnitee hereby agree as follows:

 

AGREEMENT

 

            1. Indemnification.

 

                 (a)Indemnification
of Expenses. The Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee was or is or becomes
a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, any threatened,
pending or completed action, suit, proceeding or alternative dispute resolution mechanism, or any hearing, inquiry or investigation
that Indemnitee in good faith believes might lead to the institution of any such action, suit, proceeding or alternative dispute
resolution mechanism, whether civil, criminal, administrative, investigative or other (hereinafter a "Claim")
by reason of (or arising in part out of) any event or occurrence related to the fact that Indemnitee is or was a director, officer,
employee, agent or fiduciary of the Company, or any subsidiary of the Company, or is or was serving at the request of the Company
as a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other enterprise,
or by reason of any action or inaction on the part of Indemnitee while serving in such capacity (hereinafter an "Indemnifiable
Event" ) against any and all expenses (including attorneys' fees and all other costs, expenses and obligations incurred
in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend,
be a witness in or participate in, any such action, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry
or investigation), losses, claims, damages, liabilities, judgments, fines, penalties and amounts paid in settlement (if such settlement
is approved in advance by the Company, which approval shall not be unreasonably withheld) of such Claim and any federal, state,
local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement,
including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses (collectively,
hereinafter "Expenses") if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be
in or not opposed to the best interests of the Company, and, with respect to any criminal action, suit or proceeding, Indemnitee
had no reasonable cause to believe Indemnitee's conduct was unlawful.

 

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                 (b)
Mandatory Payment of Expenses. Notwithstanding any other provision of this Agreement other than Section 7 hereof, to
the extent that Indemnitee has been successful on the merits or otherwise, including, without limitation, the dismissal of a Claim
without prejudice, in defense of any Claim referred to in Section (1)(a) hereof or in the defense of any Claim, issue or matter
therein, Indemnitee shall be indemnified against all Expenses incurred by Indemnitee in connection therewith.

 

            2.  Expenses;
Indemnification Procedure.

 

                 (a)Advancement
of Expenses. The Company shall pay all Expenses incurred by Indemnitee in connection with the investigation, defense, settlement
or appeal of any civil or criminal Claim referenced in Section 1(a) hereof in advance of the final disposition of such Claim. Indemnitee
shall deliver to the Company an Undertaking, substantially in the form of Exhibit A hereto, whereby Indemnitee
undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that Indemnitee is
not entitled to be indemnified by the Company as authorized hereby. The advances to be made hereunder shall be paid by the Company
to Indemnitee following a request therefor, but in any event no later than forty-five days after receipt by the Company of written
demand from Indemnitee for such advances.

 

                 (b)Notice/Cooperation
by Indemnitee. Indemnitee shall, as a condition precedent to Indemnitee's right to be indemnified under this Agreement, give
the Company notice in writing as soon as practicable of any Claim made against Indemnitee for which indemnification or advancement
will or could be sought under this Agreement. Notice to the Company shall be directed to the Company at the address shown on the
signature page of this Agreement (or such other address as the Company shall designate in writing to Indemnitee). The failure to
promptly notify the Company of the commencement of the action, suit or proceeding, or of Indemnitee’s request for indemnification,
will not relieve the Company from any liability that it may have to Indemnitee hereunder or otherwise, except to the extent the
Company is actually and materially prejudiced in its defense of such action, suit or proceeding as a result of such failure or
delay, and any such failure or delay shall not constitute a waiver by Indemnitee of any rights under this Agreement or otherwise.
To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request therefor including such
documentation and information as is reasonably available to Indemnitee and is reasonably necessary to enable the Company to determine
whether and to what extent Indemnitee is entitled to indemnification.

 

                 (c)Procedure.
Any indemnification and advances of Expenses provided for in Section 1 and Section 2 of this Agreement shall be paid by the Company
to Indemnitee as soon as practicable after receipt of written request from Indemnitee for such indemnification or advances along
with appropriate written documentation verifying such Expenses, but in no event later than forty-five days after receipt of such
request. If the Company believes that Indemnitee has not met the standards of conduct which make it permissible under applicable
law for the Company to indemnify Indemnitee for the Expenses claimed, the Company may file an action in the Court of Chancery of
the State of Delaware to obtain a declaratory judgment that Indemnitee is not entitled under applicable law to receive indemnification
or advancement from the Company (hereinafter a “Declaratory Action”). If the Company files a Declaratory Action,
Indemnitee shall be entitled to receive interim payments of Expenses pursuant to Subsection 2(a) including Expenses incurred in
defending a Declaratory Action unless and until the Court of Chancery of the State of Delaware issues an order or judgment that
Indemnitee is not entitled under applicable law to receive indemnification or advancement from the Company. If the Court of Chancery
of the State of Delaware issues an order or judgment in a Declaratory Action that Indemnitee is not entitled under applicable law
to receive indemnification or advancement from the Company, the Company shall have no further obligation under this Agreement,
the Company's Certificate of Incorporation, the Company Bylaws or any other applicable law, statute or rule to provide indemnification
or advances of Expenses to Indemnitee and Indemnitee shall be responsible for repaying all such amounts previously advanced to
Indemnitee as provided in Section 2(a).

 

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                 (d)No
Presumptions. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that
Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification
is not permitted by applicable law. In addition, neither the failure of the Company (including its Board of Directors, any committee
or subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification
of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by applicable
law, nor an actual determination by the Company (including its Board of Directors, any committee or subgroup of the Board of Directors,
independent legal counsel, or its stockholders) that Indemnitee has not met such applicable standard of conduct, shall create a
presumption that Indemnitee has or has not met the applicable standard of conduct.

 

                 (e)Burden
of Proof. In a Declaratory Action, the burden of proof shall be on the Company to establish that Indemnitee is not entitled
to indemnification or advances.

 

                 (f)
Notice to Insurers. If, at the time of the receipt by the Company of a notice of a Claim pursuant to Section 2(b) hereof,
the Company has liability insurance in effect which may cover such Claim, the Company shall give prompt notice of the commencement
of such Claim to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result
of such Claim in accordance with the terms of such policies.

 

                 (g)Selection
of Counsel. In the event the Company shall be obligated hereunder to pay the Expenses of any Claim, the Company shall be entitled
to assume the defense of such Claim with counsel approved by Indemnitee, which approval shall not be unreasonably withheld, upon
the delivery to Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel
by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement
for any fees of counsel subsequently incurred by Indemnitee with respect to the same Claim. Notwithstanding the Company's assumption
of the defense of any Claim, the Company shall be obligated to pay the Expenses of any Claim if (A) the employment of counsel by
Indemnitee has been previously authorized by the Company, (B) the Company shall have reasonably concluded that there is a conflict
of interest between the Company and Indemnitee in the conduct of any such defense such that Indemnitee needs to be separately represented,
or (C) the Company shall not continue to retain counsel to defend such Claim, then the fees and expenses of counsel retained by
Indemnitee shall be at the expense of the Company. The Company shall have the right to conduct such defense as it sees fit in its
sole discretion, including the right to settle any Claim against Indemnitee without the consent of the Indemnitee; provided, that
in no event shall the Company have the right to settle any Claim that imposes non-monetary penalties on Indemnitee without the
prior written consent of Indemnitee which may be granted or withheld in Indemnitee’s sole discretion.

 

            3.  Additional
Indemnification Rights; Nonexclusivity.

 

                 (a)Scope.
The Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification
is not specifically authorized by the other provisions of this Agreement, the Company's Certificate of Incorporation, the Company's
Bylaws or by statute. In the event of any change after the date of this Agreement in any applicable law, statute or rule which
expands the right of a Delaware corporation to indemnify a member of its Board of Directors or an officer, employee, agent or fiduciary,
it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits afforded by such change.
In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify
a member of its Board of Directors or an officer, employee, agent or fiduciary, such change, to the extent not otherwise required
by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties' rights and
obligations hereunder except as set forth in Section 7(a) hereof.

 

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                 (b)Nonexclusivity.
The indemnification provided by this Agreement shall be in addition to any rights to which Indemnitee may be entitled under the
Company's Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested directors, the General
Corporation Law of the State of Delaware, or otherwise. The indemnification provided under this Agreement shall continue as to
Indemnitee for any action Indemnitee took or did not take while serving in an indemnified capacity even though Indemnitee may have
ceased to serve in such capacity.

 

            4.  No
Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with any Claim
made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy, Certificate
of Incorporation, Bylaw or otherwise) of the amounts otherwise indemnifiable hereunder.

 

            5.  Partial
Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion
of Expenses incurred in connection with any Claim, but not, however, for the total amount thereof, the Company shall nevertheless
indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

 

            6.  Mutual
Acknowledgement. Both the Company and Indemnitee acknowledge that in certain instances, Federal law or applicable public policy
may prohibit the Company from indemnifying its directors, officers, employees, agents or fiduciaries under this Agreement or otherwise.
Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the
Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination
of the Company's right under public policy to indemnify Indemnitee.

 

            7.  Exceptions.
Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

 

                 (a)Excluded
Action or Omissions. To indemnify (i) any Claim by or in the right of the Company as to which Indemnitee shall have been adjudged
to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware or such other court in
which such Claim was brought, shall determine upon application that despite the adjudication of liability, in view of all the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Expenses such court shall deem proper, or (ii)
any other acts, omissions or transactions from which Indemnitee may not be relieved of liability under applicable law;

 

                 (b)Claims
Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to Claims initiated or brought voluntarily
by Indemnitee and not by way of defense, except (i) with respect to Claims brought to establish or enforce a right to indemnification
or advancement under this Agreement or any other agreement or insurance policy or under the Company's Certificate of Incorporation
or Bylaws, as now or hereafter in effect relating to Claims for Indemnifiable Events, (ii) in specific cases if the Board of Directors
has approved the initiation or bringing of such Claim, or (iii) as otherwise required under Section 145 of the Delaware General
Corporation Law, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance expense
payment or insurance recovery, as the case may be;

 

                 (c)Claims
Under Section 16(b). To indemnify Indemnitee for Expenses and the payment of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor
statute.

 

                 (d)Disgorgement
of Profits and Bonuses Pursuant to Section 304. To indemnify Indemnitee for (i) any bonus or other incentive-based or equity-based
compensation received by Indemnitee or (ii) any profits arising from the sale of securities made by Indemnitee that Indemnitee
is required pursuant to Section 304 of the Sabarnes-Oxley Act of 2002 to reimburse to the Company.

 

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            8.  Period
of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company
against Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal representatives after the expiration of
five (5) years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished
and deemed released unless asserted by the timely filing of a legal action within such five-year period; provided , however
, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

 

            9.  Construction
of Certain Phrases.

 

 (a) For purposes
of this Agreement, references to the "Company" shall include, in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence
had continued, would have had power and authority to indemnify its directors, officers, employees, agents or fiduciaries, so that
if Indemnitee is or was a director, officer, employee, agent or fiduciary of such constituent corporation, or is or was serving
at the request of such constituent corporation as a director, officer, employee, agent or fiduciary of another corporation, partnership,
joint venture, employee benefit plan, trust or other enterprise, Indemnitee shall stand in the same position under the provisions
of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

 

    (b)
For purposes of this Agreement, references to "other enterprise(s)" shall include employee benefit plans; references
to "fines" shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references
to "serving at the request of the Company" shall include any service as a director, officer, employee, agent or fiduciary
of the Company which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect
to an employee benefit plan, its participants or its beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner "not opposed to the best interests of the Company" as referred to in this Agreement.

 

            10.  Counterparts.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

            11.  Binding
Effect; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business and/or assets of the Company, spouses, heirs, and personal and legal representatives.
The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise)
to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform if no such succession had taken place. This Agreement shall continue in effect
with respect to Claims relating to Indemnifiable Events regardless of whether Indemnitee continues to serve as a director, officer,
employee, agent or fiduciary of the Company or of any other enterprise at the Company's request.

 

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            12. Notice.
All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall
in any event be deemed to be given (a) five (5) days after deposit with the U.S. Postal Service or other applicable postal service,
if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one business day after the business
day of deposit with Federal Express or similar overnight courier, freight prepaid, or (d) one day after the business day of delivery
by facsimile transmission or by electronic mail, if delivered by facsimile transmission or electronic mail, with copy by first
class mail, postage prepaid, and shall be addressed if to Indemnitee, at the Indemnitee address as set forth beneath Indemnitee
signatures to this Agreement and if to the Company at the address of its principal corporate offices (attention: Secretary) or
at such other address as such party may designate by ten days' advance written notice to the other party hereto.

 

            13. Consent
to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State
of Delaware for all purposes in connection with any action which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be commenced, prosecuted and continued only in the Court of Chancery of the State
of Delaware in and for New Castle County, which shall be the exclusive and only proper forum for adjudicating such a claim.

 

            14. Severability.
The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within
a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable,
and the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent
possible, the provisions of this Agreement (including, without limitations, each portion of this Agreement containing any provision
held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as
to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

 

            15. Choice
of Law. This Agreement shall be governed by and its provisions construed and enforced in accordance with the laws of the State
of Delaware, as applied to contracts between Delaware residents, entered into and to be performed entirely within the State of
Delaware, without regard to the conflict of laws principles thereof.

 

            16.  Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee who shall execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company effectively to bring suit to enforce such rights.

 

            17.  Amendment
and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is
in writing signed by both the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute
a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

            18.  Integration
and Entire Agreement. This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges
all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between
the parties hereto.

 

            19.  No
Construction as Employment Agreement. Nothing contained in this Agreement shall be construed as giving Indemnitee any right
to be retained in the employ of the Company or any of its subsidiaries.

 

 

[Remainder of Page Intentionally Left Blank]

 

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            IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	 	 	Inspyr Therapeutics, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:	[___________]
	 	 	 	Title:	[___________]

 

	     AGREED TO AND ACCEPTED BY:
	 	 
	     Signature:	 
	 	 [__________]
	 	 
	 	 
	 	 
	 	 
	 	 

 

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EXHIBIT A 

GENERAL FORM OF
UNDERTAKING FOR ADVANCEMENT OF EXPENSES

 

1.                    
This instrument (this “Undertaking”) is being executed by the undersigned in favor of Inspyr Therapeutics,
Inc. a Delaware corporation (the “Corporation”), pursuant to that certain Indemnification Agreement, made and
entered into as of [*], 20[*] (the “Indemnification Agreement”), by and between the Corporation and the
undersigned.

 

2.                    
I am requesting advancement of expenses which have been or will be actually and reasonably incurred by me or on my behalf
in connection with a proceeding to which I am a party or am threatened to be made a party, or in which I am or may be participating,
by reason of my status as a director, officer or fiduciary of the Company.

 

3.                    
With respect to all matters related to such proceeding, I believe I acted in good faith and in a manner I reasonably believed
to be in or not opposed to the best interests of the Corporation or its affiliates, and, with respect to any criminal proceeding,
I had no reasonable cause to believe that my conduct was unlawful.

 

4.                    
I hereby undertake to repay any advancement of expenses if it shall ultimately be determined by final judicial decision
from which there is no further right to appeal or otherwise in accordance with Delaware law that I am not entitled to be so indemnified
for such Expenses.

 

5.                    
I am requesting advancement of Expenses in connection with the following matter: [PROVIDE DETAILS] 

 

 

 

 

 

Name of Indemnitee:

Dated:

 

    8Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment Agreement (this
“Agreement”) is made and entered into as of April 29, 2014, by and between Hollister & Blacksmith, Inc., a Colorado
corporation (the “Corporation”) and Ellis Smith (the “Executive”) as follows:

 

WITNESSETH:

 

WHEREAS, the Executive is currently serving
as the Chief Development Officer of the Corporation; and

 

WHEREAS, the parties hereby desire to enter
into this Agreement to set forth the terms and conditions for the employment relationship of the Executive with the Corporation;
and

 

WHEREAS, the Board of Directors of the Corporation
(the “Board”) has approved and authorized the Corporation’s execution and entry into this Agreement with the
Executive; and

 

NOW, THEREFORE, in consideration of the mutual
covenants herein contained, and such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1. Incorporation of Recitals. The above recitals
are hereby incorporated into and made a part of this Agreement.

 

2. Term. Employment shall be for a term commencing on the date hereof and expiring
five (5) years from the date hereof, unless terminated earlier pursuant to Section 7 hereof. Notwithstanding the previous
sentence, this Agreement and the employment of the Executive shall be automatically renewed (subject to Section 7) for
successive one—year periods upon the terms and conditions set forth herein, commencing on the fifth anniversary of the
date of this Agreement, and on each anniversary date thereafter. For purposes of this Agreement, any reference to the
“term” of this Agreement shall include the original term and any extension thereof.

 

3. Employment of the Executive/Duties of
the Executive.

 

(a) The Corporation hereby agrees to employ
the Executive as Chief Development Officer of the Corporation and the Executive hereby agrees to be employed by the Corporation
in such capacity upon the terms and conditions herein set forth.

 

(b) The Executive shall serve as Chief Development
Officer of the Corporation, reporting to the Board. The Executive shall devote business time, efforts, attention, skill and energy
to the Company’s business as Executive deems necessary to fulfill his responsibilities. During the term of this agreement
the Executive may serve as an officer, director or otherwise participate in educational, welfare, social, religious and civic
organizations. The Executive shall endeavor to devote a minimum of 40 hours per week of his time to the Corporation.

 

(c) Executive agrees that he will at all
times faithfully, industriously, and to the best of his ability, experience, and talents, perform all of the duties that may be
required of and from him pursuant to the express and implicit terms of this Agreement, to the reasonable satisfaction of the Company.

 

(d) Before the end of each of the Company’s
fiscal years, the Executive shall meet with the Board to set agreed management performance objectives for the Executive for the
upcoming year which shall be formally reviewed annually, with informal reviews to be performed from time to time throughout the
year.

 

    	 	

	 

    	 

    

4. Compensation; Base Salary; Bonuses; Milestones.

 

(a) During the term of this Agreement, the
Corporation shall pay to the Executive a base salary in the amount set forth in Schedule A per annum (“Annual Base Salary”),
which Annual Base Salary may be adjusted from time to time by the Corporation, payable in equal bi- monthly installments and in
the manner consistent with the Corporation’s general policies regarding compensation of executive employees.

 

(b) The Board (or a committee of the Board)
shall review Executive’s Annual Base Salary compensation quarterly for the first year and annually thenceforth at the conclusion
of the Company’s fiscal year, and make a recommendation for any adjustment to the then current Base Salary. Subject to the
immediately preceding sentence, the actual increase in Executive’s Annual Base Salary shall be made within the Board’s
sole judgment and discretion and shall be based, in part, on an analysis of total compensation paid to Executive officers of comparable
entities within this region and any other criteria the Board determines are appropriate.

 

(c) After the first year of this Agreement,
if the Board authorizes cash incentive compensation to the other executive officers of the Corporation, the Executive shall be
eligible to participate in such plan, program or arrangement as determined by the Board in its sole discretion.

 

(d) The Board (or a committee of the Board)
shall review Executive’s performance at the conclusion of the Company’s fiscal year, and make a recommendation for
any annual incentive bonus compensation for the Executive. Any bonus shall be paid to the Executive in a lump sum no later than
April 15th of the year following the year in which the bonus compensation was earned. Subject to the immediately preceding
sentence, the amount of any such bonus, as determined by the Board in the exercise of its reasonable discretion will be based
on, among other things, the Company’s performance for the completed fiscal year (December 31) as reflected by such
factors as gross revenue, net profits, and achievement of specific predetermined goals, including without limitation development
of a strategic acquisition and organic growth plan. Executive shall also be eligible to participate in such other bonus or incentive
compensation programs as may be established by the Company for other executives.

 

5. Executive Benefits.

 

(a) In addition to the compensation described
in Section 4, the Corporation shall make available to the Executive, subject to the terms and conditions of the applicable plans,
including without limitation the eligibility rules, participation for the Executive and the Executive eligible dependents contingent
for the corporation to operate and not impact operations and maintain all liabilities in the Corporation—sponsored employee
benefit plans or arrangements and such other usual and customary benefits now or hereafter generally available to employees of
the Corporation. If approved by the board benefit plans will include health insurance, Life insurance, disability insurance, and
all other normal and customary benefits such as paid vacation. Executive shall also be entitled to participate in, or enjoy the
benefit of, any other fringe benefits or prerequisites that are now or may be or become applicable to the Corporation’s
executive employees, including any executive stock option plan or program adopted for executive officers of the Company. The Corporation
is not obligated to provide or continue any of these benefits and may on an executive group basis, without prior notice, discontinue
any benefit already provided or as may be provided in the future, within the exclusive discretion of the Board, however in such
event the Executive shall be entitled to receive any benefits, accrued but unpaid as of the effective date of any such discontinuance
of benefits.

 

    	 	

	 

    	 

    

(b) In the event of Change in Control, as
hereafter defined, or involuntary termination of the Executive’s employment hereunder, any unvested stock option of the
Executive will immediately vest. For purposes of this Agreement, a “Change in Control” will be deemed to have occurred
is there is a merger or consolidation of the Corporation, or any sale, lease or exchange of all or substantially all of the consolidated
assets of the Corporation and its subsidiaries (if any) to any other entity or person, and (a) in the case of a merger or consolidation,
if the voting stockholders of the Corporation before the transaction hold less than fifty—one percent (51%) of the voting
common stock of the survivor of such merger or consolidation or its parent corporation, or (b) in the case of a sale, lease or
exchange, the Corporation does not own at least fifty—one percent (51%) percent of the voting common stock of the other
entity. However, no “Change in Control” will be deemed to have occurred if Executive is part of the purchasing group
that consummates the Change in Control transaction.

 

(c) Executive is entitled to twenty-one (21)
days of paid time off (“Paid Time Off”) per year, in addition to the Company’s normal holidays. Paid Time Off
will be scheduled taking into account the Executive’s duties and obligations at the Company. Sick leave, holiday pay and
all other leaves of absence will be in accordance with the Company’s stated personnel policies. In the event the Executive’s
employment is terminated for any reason, Executive shall have the right to compensation for any un—used Paid Time Off for
the last twenty four months.

 

6. Expenses. The Corporation shall also pay or reimburse the Executive for
reasonable and necessary expenses incurred by the Executive in connection with his duties on behalf of the Corporation,
including, but not limited to all expenses of travel and living expenses while away from home on business or at the request
of and in the service of the Corporation, provided that such expenses are incurred and accounted for in accordance with the
policies and procedures established by the Corporation. Executive shall be entitled to parking expenses (excluding
violations) when on the job, be it at the office or While on business trips.

 

7. Termination.

 

(a) Either party to this Agreement may give the other party written notice of such
party’s intention to terminate this Agreement and the employment of the Executive at least ninety (90) days prior to
the end of the initial or an extended term.

 

(b) The Corporation may, subject to applicable
law, terminate this Agreement by giving the Executive Six (6) months notice if the Executive incurs a condition that prevents
Executive from carrying out his essential job functions for a period of Nine (9) months or longer. The incapacity of the Executive
as described in the preceding sentence shall be determined by a medical doctor mutually selected by the Corporation and the Executive
or Executive’ s representative.

 

(c) Any other provision of this Agreement
notwithstanding, the Corporation may terminate Executive’s employment without notice and without any further compensation
obligations, (except his accrued benefits and any benefit continuation or conversion rights he may have under the terms of the
benefit plan or applicable law) including without limitation any severance pay, if the termination is based on a material violation
of this Agreement, fraud, embezzlement, securities law violation, other gross misconduct which causes material economic damage
to the Corporation or material damage to the business reputation of the Corporation, or an intentional breach of the confidentiality,
non-solicitation and non-competition provisions set forth herein. For purposes of this Agreement, no act or failure to act on
the part of the Executive shall be deemed “intentional” if it was due primarily to an error in judgment or negligence,
but shall be deemed “intentional” only if done or omitted to be done by the Executive not in good faith and without
reasonable belief that his action or omission was in the best interest of the Corporation

 

    	 	

	 

    	 

    

(d) Should the Corporation terminate the
Executive’s employment for any reason other than those listed in Section 7(c) above, after 12 Months of employment or in
the event there is a change in the majority of the directors of the Company, or the sale of a controlling interest in the stock
(other than the contemplated merger with Brazil Interactive Media) of the Company or sale of substantially all of the assets of
the Company’s operating subsidiaries, the Executive shall be paid as severance (a) an amount equal to Five (5) years Base
Salary at Executive’s then current compensation less customary withholdings, payable in twelve equal installments on the
first day of each calendar month beginning on the first day of the first month after his termination, plus his accrued benefits
and any benefit continuation or conversion rights he may have the terms of the Corporation’s benefit plans or applicable
law. This severance pay shall be doubled if the Executive is terminated as a result of a Change in Control of the Corporation
or any subsidiary of the Corporation. The Corporation shall have no other compensation obligations to the Executive.

 

(e) Employment and any further compensation
obligations, pursuant to this Agreement will be deemed terminated upon the death of the Executive, except for any compensation
obligation that has vested prior to the death of the Executive.

 

(f) If the Corporation requires the Executive
to relocate, without Executive’s consent, to an office more than Fifty (50) miles from which Executive conducted business
as of the date of this Agreement the Executive may resign his position and terminate his employment hereunder and, in such event,
if the Executive so resigns, (i) he shall receive the severance and other entitlements provided under Section 7(d) above and (ii)
all unvested options issued to Executive, if any, shall vest immediately.

 

(g) The Executive agrees that after his employment
with the Corporation has terminated Executive will provide, upon reasonable notice, such information and assistance to the Corporation
as may reasonably be requested by the Corporation in connection with any litigation in which it or any of its affiliates is or
may become a party; provided, however, that the Corporation agrees to reimburse the Executive for any related expenses, including
travel expenses.

 

8. Confidentiality, Non—Solicitation
and Non-competition Agreement.

 

(a) Acknowledgment. The Executive acknowledges
that in the course of his employment by the Corporation, he will or may have access to and become informed of confidential and
secret information which is a competitive asset of the Corporation (“Confidential Information”) including, without
limitation: (i) the terms of any agreement between the Corporation and any employee, customer or supplier; (ii) pricing strategy;
(iii) merchandising and marketing methods; (iv) product development ideas and strategies; (v) personnel training and development
programs; (vi) financial results; (vii) strategic plans and demographic analyses; (viii) proprietary computer systems software;
(ix) customer information and lists; and (x) any non-public information concerning the Corporation, its employees, suppliers or
customers. The Executive agrees that he will keep all Confidential Information in strict confidence during the term of his employment
by the Corporation and thereafter, and will never directly or indirectly make known, divulge, reveal, furnish, make available,
or use any Confidential Information except in the course of his regular authorized duties on behalf of the Corporation. The Executive
agrees that the obligations of confidentiality hereunder shall survive termination of his employment at the Corporation regardless
of any actual or alleged breach by the Corporation of this Agreement, until and unless any such Confidential Information shall
have become, through no fault of the Executive, generally known to the public or the Executive is required by law to make disclosure.
The Executive’s obligations under this Section 8 are in addition to, and not in limitation of or preemption of, all other
obligations of confidentiality which the Executive may have to the Corporation under general legal or equitable principles.

 

    	 	

	 

    	 

    

(b) Confidential Information. Except in the ordinary course of the
Corporation’s business, the Executive has not made, nor shall Executive at any time following the date of the
Agreement, make or cause to make, any copies, pictures, duplicates, facsimiles or other reproductions or recordings or any
abstracts or summaries including or reflecting Confidential Information. All such documents and other property
furnished to the Executive by the Corporation or otherwise acquired or developed by the Corporation shall at all times be the
property of the Corporation and the Executive shall not at any time, directly or indirectly, use or disclose, make known,
divulge, reveal or furnish to any person, business, firm or corporation, partnership, or other entity any material including
or reflecting Confidential Information. Upon termination of the Executive’s employment with the Corporation, the
Executive will return to the Corporation any such documents or other property of the Corporation which are in the possession,
custody or control of the Executive.

 

(c) Competition. Throughout the period following
involuntary termination of employment with the Corporation during which termination payments are being made and accepted by the
Executive (hereinafter referred as the “Restricted Period”), the Executive shall not, directly or indirectly, own,
manage, operate, join or control, or participate in the ownership, management, operation or control of, or be a proprietor, director,
officer, stockholder, member, partner or an employee or agent of, or consultant to, any person, business, division of a business,
firm, corporation, partnership or other entity anywhere in the United States of America which engages in (i) the primary business
of the Corporation, and/or (ii) any other principal line of business engaged in or developed by the Corporation or any subsidiary
of the Corporation after the date hereof but prior to the date of termination of the Executive’s employment with the Corporation
in any state or country in which the Corporation or any subsidiary has conducted business during the Measuring Period (hereinafter
the “Restricted Business”). The “Measuring Period” shall be the six (6) month period preceding the date
of termination of the Executive’s employment with the Corporation.

 

(d) Solicitations of Customers. During the
Restricted Period, the Executive shall not, directly or indirectly, for his own account or as proprietor, stockholder, member,
partner, director, officer, employee, agent or otherwise for or on behalf of any person, business, firm corporation, partnership
or other entity other than the Corporation, sell or broker, offer to sell or broker or solicit or assist in the offer to sell
or broker or solicit any orders for the purchase of any products or services sold by the Corporation (including any subsidiaries)
or its successors or assigns during the Measuring Period (“Products”) to or from any person, corporation or other
entity which was a customer of the Corporation at any time during the Measuring Period. For purposes of this Agreement, “customer
of the Corporation” means and includes (i) any and all persons, businesses, corporations, partnerships or other entities
which: (A) have done business with the Corporation and its successors and assigns as a customer during the Measuring Period, (B)
have been contacted by the Corporation, its successors and assigns for the purpose of purchasing products and services, or (C)
have preexisting business relationships and/or dealings with the Executive when his employment with the Corporation terminates
and (ii) all persons, businesses, corporations, partnerships or other entities which control, or are controlled by, the same person,
business, corporation, partnership or other entities which control, or are controlled, by the same person, business, corporation,
partnership or other entity which controls any such customer of the Corporation, its successors and assigns. For the purposes
of this Agreement, “customers” includes prospective customers and referral sources of customers.

 

(e) Solicitations of Employees.
During the one (1) year period following voluntary or involuntary termination of employment with the Corporation (whether or not
termination payments are being made) and for the additional time thereafter, if any, during which termination payments are being
made, the Executive shall not, directly or indirectly, for his own account or as proprietor, stockholder, partner, director, officer,
employee, agent or otherwise for or on behalf of any person, business, firm, corporation, partnership or other entity than the
Corporation, its successors or assigns solicit any person who is an employee of the Corporation, its successors and assigns for
employment with any person, business, firm, corporation, partnership or other entity other than the Corporation.

 

    	 	

	 

    	 

    

(f) Cumulative Provisions. The covenants
and agreements contained in this Section 8 are independent of each other and cumulative.

 

(g) Binding Effect: Third Party Beneficiaries.
The provisions of this Section 8 shall inure to the benefit of the Corporation, its successors and assigns.

 

(h) Remedies for Breach. The Executive further
acknowledges and agrees that his obligations under this Agreement are unique and that any breach or threatened breach of such
obligations may result in irreparable harm and substantial damages to the Corporation, its successors and assigns and that the
Corporation’s remedy at law for any such violation would be inadequate. Accordingly, in the event of a breach or threatened
breach by the Executive of any of the provisions of this Agreement, the Corporation, its successors and assigns shall have the
right, in addition to exercising any other remedies at law or equity which may be available to it under this Agreement.

 

(i) Divisibility. The Executive agrees that
the provisions of this Section 8 are divisible and separable so that if any provision hereof shall be held to be unreasonable,
unlawful or unenforceable, such holding shall not impair the remaining provisions hereof. If any provision hereof is held to be
unreasonable, unlawful or unenforceable in duration, geographical scope or character of restriction of the Executive by any court
of competent jurisdiction, it is the express desire and agreement of the Parties that such provisions shall be modified to the
extent necessary in order that such provision or portion thereof shall be legally enforceable to the fullest extent permitted
by law, and the parties hereto do hereby expressly authorize any court of competent jurisdiction to enforce any such provision
or portion thereof or to modify any such provision or portion thereof in order that any such provision or portion thereof shall
be enforced by such court to the fullest extent permitted by applicable law.

 

9. Indemnification.

 

(a) The Corporation
will indemnify the Executive to the fullest extent permitted by the laws of the state of Colorado in effect at that time, or certificate
of incorporation and by-laws of the Corporation, whichever affords the greater protection to the Executive. The foregoing notwithstanding,
the Corporation shall not indemnify the Executive for acts of his own negligence, willfulness or malfeasance or if the articles
of incorporation or by-laws prohibit such indemnification.

 

(b) The Executive shall
notify the Corporation in writing as soon as reasonably practicable after being informed in writing of a claim from a third party
and in respect of which a right of indemnification given pursuant to this Indemnification Agreement may apply. The Corporation
shall have the right to elect, by written notice delivered to the Executive within 10 days of receipt by the Corporation of the
notice from the Executive in respect of the claim, at the sole expense of the Corporation, to participate in or assume control
of the negotiation, settlement or defense of the claim, provided that: such will be done at all times in a diligent and bona fide
matter; the Corporation acknowledges in writing its obligation to indemnify the Executive in accordance with the terms contained
in this Agreement in respect of that claim; and the Corporation shall pay all reasonable out—of—pocket expenses incurred
by the Executive as a result of such participation or assumption.

 

(c) If the Corporation elects to assume such
control, the Executive shall cooperate with the Corporation and its counsel and shall have the right to participate in the negotiation,
settlement or defense of such claim at his own expense. If the Corporation does not so elect or, having elected to assume such
control, thereafter fails to proceed with the settlement or defense of any such claim in accordance with paragraphs (a) or (b),
the Executive shall be entitled to assume such control. In such case, the Corporation shall cooperate where necessary with the
Executive and his counsel in connection with such claim and The Corporation shall be bound by the results obtained by the Executive
with respect to such claim.

 

    	 	

	 

    	 

    

(d) If any claim is of a nature such that the Executive is required by applicable
law to make a payment to any person (a “Third Party”) with respect to such claim before the completion of
settlement negotiations or related legal proceedings, including all legal fees and expenses relating to the defense and
negotiation of a claim for which the Corporation has not elected to assume control, the Corporation shall, forthwith after
demand by the Executive, make such payment on behalf of the Executive or, if the Executive made such payment, reimburse the
Executive for any such payment. If the amount of any liability under the claim in respect of which such a payment was made,
as finally determined, is less than the amount which was paid by the Corporation to the Executive, the Executive shall,
forthwith after receipt of the difference from the Third Party, pay such difference to the Corporation;

 

(e) Except in the circumstances contemplated by this section 9, and whether or not
the Corporation assumes control of the negotiation, settlement or defense of any claim, the Executive shall not settle or
compromise any claim except with the prior written consent of the Corporation (which consent shall not be unreasonably
withheld). A failure by the Corporation to respond in writing to a written request by the Executive for consent for a period
of ten (10) days or more shall be deemed a consent by the Corporation to such request;

 

(f) The Corporation and the Executive shall
provide each other on an ongoing basis with all information which may be relevant to the other’s liability hereunder and
shall supply copies of all relevant documentation promptly as they become available; and

 

(g) Notwithstanding Section 9(c), if the Executive has assumed control of the negotiation,
settlement and defense of a claim, the Corporation shall not settle any claim or conduct any related legal or administrative proceeding
in a manner which would, in the opinion of the Executive, acting reasonably, have a material adverse impact on the Executive,
unless the Executive fails to respond in writing to a written request by the Corporation for consent to the proposed action by
the Corporation within ten (10) days. A failure by the Executive to respond in writing to a written request by the Corporation
for consent for a period of ten (10) days or more shall be deemed a consent by the Executive to such request.

 

10. Arbitration. Any dispute between the parties under this Agreement shall be
resolved (except as provided below) through informal arbitration by an arbitrator (who is selected as provided below) and
under the rules of the American Arbitration Association. The Arbitration hall be conducted under the rules of said
Association at the location where the Executive is then employed by the Corporation, provided, however, that the arbitration
shall be conducted at the location specified by the Corporation if the Executive’s out—of—pocket expenses
of travel and lodging are borne by the Corporation. Each party shall be entitled to present evidence and argument to the
arbitrator. The arbitrator shall have the right only to interpret and apply the provisions of this Agreement and may not
change any of its provisions. The arbitrator shall permit reasonable pre—hearing discovery of facts, to the extent
necessary to establish a claim or defense to a claim, subject to supervision by the arbitrator. The determination of the
arbitrator shall be conclusive and binding upon the parties and judgment upon the same may be entered in any court having
jurisdiction thereof. The arbitrator shall give written notice to the parties stating his or their determination, and shall
furnish to each party a signed copy of such determination. The expenses of arbitration shall be borne equally by the
Executive and the Corporation or as the arbitrator shall otherwise equitably determine.

 

    	 	

	 

    	 

    

In the event the services of an arbitrator are required and if the Executive and
Corporation are unable within five (5) days after determining such services are required to agree upon the identity of an
arbitrator, within ten (10) days thereafter the Executive and Corporation shall each select an arbitrator and the two
arbitrators shall select by mutual agreement an arbitrator. If either party fails to select an arbitrator, then the other
party shall select the second arbitrator, and an arbitrator shall be selected by mutual agreement of the two arbitrators. In
the event the selected arbitrators are unable to agree on an arbitrator, the two arbitrators shall each select an arbitrator
from a list of arbitrator provided by the American Arbitration Association and those arbitrators shall mutually agree upon
the selection of an arbitrator who will be the arbitrator.

 

11. Agreement. This Agreement supersedes any and all other agreements, either oral
or in writing, between the parties hereto with respect to the subject matter hereof and contains all of the covenants and
agreements between the parties with respect to such subject matter. Each party to this Agreement acknowledges that no
representations, inducements, promises, or other agreements, orally or otherwise, have been made by any party, or anyone
acting on behalf of any party, pertaining to the subject matter hereof, which are not embodied herein, and that no other
agreement, statement, or promise pertaining to the subject matter hereof that is not contained in this Agreement shall be
valid or binding on either party. No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing signed by the Executive and the Corporation. The prior approval by a
majority affirmative vote of the full Board shall be required in order for the Corporation to authorize any amendments or
additions to this Agreement, to give any consents or waivers of provisions of this Agreement, or to take any other action
under this Agreement.

 

12. Withholding of Taxes. The Corporation
may withhold from any amount payable under this Agreement all federal, state or provincial, city or other taxes as the Corporation
is required to withhold pursuant to any law or government regulation or ruling.

 

13. Assignment; Successors and Binding Agreement.

 

(a) Assignment by the Corporation. Subject
to the terms of this Agreement, the Corporation may assign this Agreement to any entity merging with or acquiring the Corporation,
provided the Corporation’s obligations hereunder shall be legal obligations and shall be assumed by such entity, as set
forth in subsection 13(c) below.

 

(b) Assignment by Executive. No interest
of Executive or his spouse or any other beneficiary under this Agreement, or any right to receive any payment or distribution
hereunder, shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment or other alienation or
encumbrance of any kind, nor may such interest or right to receive a payment or distribution be taken, voluntarily or involuntarily,
for the satisfaction of the obligations or debts of, or other claims against, Executive or his spouse or other beneficiary, including
claims for alimony, support, separate maintenance and claims in bankruptcy proceedings.

 

(c) Successors. The Corporation shall require any person or entity which acquired
(whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock,
liquidation, or otherwise) all or a substantial portion of the Corporation’s stock or assets, by agreement in for1n and
substance reasonably satisfactory to Executive, expressly to assume and agree to perform this Agreement in the same manner
and to the same extent that the Corporation would be required to perform this Agreement if no such acquisition had taken
place. Regardless of whether such an agreement is executed, this Agreement shall be binding upon any successor of the
Corporation in accordance with the operation of law, and such successor shall be deemed “the Corporation” for
purposes of this Agreement. As used in this Agreement, the term “the Corporation” shall include any acquirer of
or successor to the Corporation’s stock, business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

 

    	 	

	 

    	 

    

14. Notices. For all purposes of this Agreement, all communications, including
without limitation notices, consents, requests or approvals, required or permitted to be given hereunder will be in writing
and will be deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with
receipt thereof confirmed), or five business days after having been mailed by United States registered or certified mail,
return receipt requested, postage prepaid, or three business days after having been sent by a nationally recognized overnight
courier service such as Federal Express, or UPS addressed to the Corporation (to the attention of the Secretary of the
Corporation) at its principal executive offices and to the Executive at his principal residence, or to such other address as
either party may have furnished to the other in writing and in accordance herewith, except that notices of changes of address
shall be effective only upon receipt.

 

15. Law and Interpretation. This Agreement shall be governed by, construed and
interpreted in accordance with the laws of the State of Colorado without regard for its conflict of laws provisions.
With respect to each and every ter1n and condition in this Agreement, the parties understand and agree that the same have or
has been mutually negotiated, prepared and drafted, and that if at any time the parties hereto desire or are required to
interpret or construe any such term or condition or any agreement or instrument subject hereto, no consideration shall be
given to the issue of which party hereto actually prepared, drafted or requested any term or condition of this Agreement or
any agreement or instrument subject hereto. The parties further acknowledge that they have been advised of the implications
of the common representation of the Corporation and the Executive by counsel (with regard to the preparation of this
Agreement) and the inherent conflicts of interest that may arise out of such common representation. The parties
expressly consent to such common representation and waive any claims that they may have as a result of such common
representation.

 

16. Validity. If any provision of this Agreement or the application of any
provision hereof to any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of the
Agreement and the application of such provision to any other person or circumstances will not be affected, and the provision
so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent) necessary
to make it enforceable, valid or legal.

 

17. Survival of Provisions. Notwithstanding
any other provision of this Agreement, the parties’ respective rights nd obligations under Sections 5, 7, 8, 9, 10, 11,
13, 14, 15, 16, 17, 19, 20 and 22 will survive any termination or expiration of this Agreement or the termination of Executive’s
employment for any reason whatsoever.

 

18. Legal Fees and Expenses. If any action at law or in equity is brought to enforce
or interpret the provisions of this Agreement, the prevailing party shall be entitled to such costs and reasonable attorney’s
fees, in addition to any other relief to which that party may be entitled. The term “prevailing party” shall mean
that party whose position is substantially upheld in a final judgment rendered in such arbitration or litigation

 

19. Intellectual Property/Assignment. All
ideas, programs, creations, discoveries or inventions, suggestions or improvement by Executive which in any way relate to or connect
with any of the Corporation’s products, pricing, costs, sales and/or processes shall be the sole property of the Corporation.

 

    	 	

	 

    	 

    

20. Waiver. No waiver by either party hereto
at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed
by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time. No delay on the part of either party in exercising any right, power or privilege hereunder shall operate as a waiver thereof,
nor shall any waiver on the part of either party of such right, power or privilege nor any single or partial exercise of any such
right, power, or privilege, preclude any other further exercise thereof or the exercise of any other such right, power or privilege.

 

21. Counterparts. This Agreement may be executed
in any number of counterparts, each of which will be deemed to be an original and all of which taken together will be deemed to
constitute one and the same instrument, notwithstanding that all parties are not signatory to the same counterpart. The exchange
of copies of this Agreement and of signature pages by electronic mail or facsimile transmission shall constitute effective execution
and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures
of the parties transmitted by electronic mail or facsimile shall be deemed to be their original signatures for all purposes.

 

22. Insurance. The Executive shall be indemnified
by the Company against liability as an officer and director of the Company and any subsidiary or affiliate of the Company to the
maximum extent permitted by applicable law or the By-Laws of the Company, whichever is greater. The foregoing indemnification
and directors and officer’s liability insurance coverage shall continue to apply following termination of the Executive’s
employment hereunder for Executive’s actions and omissions during the period of Executive’s employment with the Corporation,
except with respect to the Executive’s own acts of negligence, willfulness or malfeasance.

 

23. Currency. All references to currencies
within this Agreement are in US dollars except where otherwise specified.

 

24. Headings. Headings in this Agreement
are for informational-purposes only and will not be used to construe the intent of this Agreement.

 

IN WITNESS WHEREOF, the parties hereof have executed this Agreement as of the day
and year first written.

 

HOLLISTER & BLACKSMITH, INC.,

a Colorado corporation

 

By: /s/ Corey Hollister

Corey Hollister Chief Executive Officer

 

EXECUTIVE: 

By: /s/ Ellis Smith

Ellis Smith

    	 	

	 

    	 

    

SCHEDULE A

 

SALARY

 

1. Annual Base Salary of: Seventy-Five Thousand
Dollars .00 ($75,000.00)

 

2. Executive Incentive Bonus Schedule; Paid
to Executive as described in per paragraph 4-d

 

A. 5% of net annual income,
if net annual income exceeds 1,000,000

 

3. Compensation to be reviewed quarterly
for year one and annually henceforth.

 

HOLLISTER & BLACKSMITH, INC.,

a Colorado corporation

 

By: /s/ Corey Hollister

Corey Hollister Chief Executive Officer

 

EXECUTIVE: 

By: /s/ Ellis Smith

Ellis Smith

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