Document:

ex10-1.htm

EXHIBIT 10.1

HOMETRUST BANK

FULLY RESTATED EMPLOYMENT AGREEMENT

ANDERSON L. SMITH

THIS FULLY RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), signed as of  May 29, 2014, between ANDERSON L. SMITH (“Executive”) and HOMETRUST BANK (the “Bank”) supersedes and replaces in their entirety the Employment Agreement, dated December 18, 2008, between Jefferson Bancshares, Inc. (“Jefferson”), Jefferson Federal Bank (“JFB”) and Executive and the Employment Agreement dated January 22, 2014 between Executive and the Bank(the “Prior Employment Agreements”), and takes effect on the consummation of the Bank Merger (the “Effective Time”) referenced below.

RECITALS

	
A.

	
Jefferson has entered into an Agreement and Plan of Merger (the “Merger Agreement”) with HomeTrust Bancshares, Inc. (“HomeTrust”), the parent of the Bank, pursuant to which Jefferson will be merged into HomeTrust (the “Merger”) and JFB will be merged into the Bank (the “Bank Merger”).

	
B.

	
Executive presently serves as President and Chief Executive Officer of Jefferson and JFB and will continue to do so until consummation of the Merger and the Bank Merger.

	
C.

	
The Bank desires Executive to be employed by the Bank from and after the Effective Time, under the terms and conditions of this Agreement, and Executive desires to be employed by the Bank from and after the Effective Time, under the terms and conditions of this Agreement.

	
  

	
AGREEMENT

	
In consideration of the promises set forth in this Agreement, the parties agree as follows.

	
1.

	
Change in Control Benefits.  At the Effective Time, in full and complete satisfaction of Executive’s change in control benefits under the Prior Employment Agreement, the Bank shall make a compensatory payment to Executive in the amount of $300,000 and the Bank or HomeTrust shall loan Executive $200,000 to be evidenced by and subject to the provisions of a promissory note, in the form previously furnished to Executive.

	
2.

	
Employment; Title.  The Bank agrees to employ Executive, and Executive accepts employment by the Bank on the terms and conditions set forth in this Agreement.  Executive’s title will be Eastern Tennessee Market President.

	
3.

	
Effective Time and Term.

	
  

	
a.

	
Term.  The term of this Agreement (“Term”) is two years beginning on the day of the Effective Time.

  

  

  

  

	
  

	
b.

	
Abandonment or Termination of the Merger.  This Agreement is void if the Merger Agreement is terminated for any reason or Executive dies or becomes disabled before the Effective Time.

	
4.

	
Duties.  Executive will faithfully and diligently perform the duties assigned to him, which duties will be consistent with his title and position.  Executive will report directly to the Bank’s Chief Banking Officer (the “CBO”).  The Chief Executive Officer of the Bank (the “CEO”) or the CBO may, from time to time, modify Executive’s performance responsibilities to accommodate management objectives of the Bank.  Executive will assume any additional positions, duties, and responsibilities as may reasonably be requested of him consistent with his title and position without additional compensation.

	
5.

	
Extent of Services.  Executive will devote all of his work time, attention and skill to the duties and responsibilities referenced in Section 4.  To the extent that such activities do not interfere with his duties under Section 4, Executive may participate in other businesses as a passive investor and provide services to charitable and community organizations, but (a) Executive may not actively participate in the operation or management of those businesses or organizations, and (b) Executive may not, without the Bank’s prior written consent, make or maintain any investment in a business with which the Bank and/or HomeTrust has an existing competitive or commercial relationship.

6.           Compensation.  Executive shall receive a base salary of not less than $210,000 per year during the Term (“Base Salary”), payable not less frequently than monthly in accordance with the Bank’s regular payroll practices for executives.

	
7.

	
Vacation and Benefits.

	
  

	
a.

	
Vacation and Holidays.  Executive will receive Paid Time Off (PTO) of 30 days each year, excluding holidays.  Executive’s ability to carry over or accumulate PTO will be governed by the Bank’s applicable policies.

	
  

	
b.

	
Benefits.  Executive will be entitled to participate in all benefit and welfare plans and programs of the Bank that are provided to employees of the Bank on a uniform and non-discriminatory basis.

	
  

	
c.

	
Certain Specific Benefits.  Executive shall be entitled to the following benefits:

	
  

	
(i)

	
Auto Allowance.  An automobile allowance of $600 per month.

	
  

	
(ii)

	
Cell phone.  Reimbursement or direct payment of Executive’s cell phone bill in an amount not to exceed $125 per month.

	
  

	
(iii)

	
Executive Life Insurance.  The Bank’s group plan provides for 2x total annual compensation, the same coverage that is provided to other Bank executives.

  

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(iv)

	
Long Term Disability.  The benefit is 60% of compensation up to a maximum $180,000 benefit amount, with the benefit designed to be received by Executive on a tax-free basis.  At age 65 the benefit goes to 24 months and declines three months every year.

	
  

	
(v)

	
Qualified Plans.  The 401(k) and ESOP plans will provide Executive a potential for significant annual employer funded benefits.

	
  

	
(vi)

	
SERP Benefit.  $15,083 per year payable annually less any required tax withholding for the remainder of the 15 year term which commenced on April 26, 2013.

8.           Termination of Employment.

	
  

	
a.

	
Termination by Bank for Cause.  If the Bank terminates Executive’s employment for Cause or Executive terminates his employment without Good Reason (defined below) before this Agreement terminates, Executive will be entitled to receive all compensation and benefits earned and expenses reimbursable through the date of termination, and in the case of a termination by the Executive without Good Reason, the remaining SERP Benefit payable annually.  Executive shall have no right to receive compensation or benefits for any period after termination.

	
  

	
b.

	
Other Termination by Bank.  If the Bank terminates Executive’s employment without Cause before this Agreement terminates, or Executive terminates his employment for Good Reason, then contingent upon Executive’s execution of a release of any and all claims arising out of such termination of his employment, the Bank will pay Executive a lump sum payment equal to the amount of Base Salary remaining to be paid during the Term, plus all compensation and benefits earned and expenses reimbursable through the date of termination, plus the remaining SERP Benefit payable annually.

	
  

	
c.

	
Death or Disability.  This Agreement terminates (1) if Executive dies or (2) if Executive is unable to perform his duties and obligations under this Agreement for a period of 90 consecutive days as a result of a physical or mental disability arising at any time during the Term, unless with reasonable accommodation Executive could continue to perform his duties under this Agreement and making these accommodations would not pose an undue hardship on the Bank.  If termination occurs under this Section 8(c), Executive or his estate will be entitled to receive all compensation and benefits earned and expenses reimbursable through the date Executive’s employment terminated plus the remaining SERP Benefit payable annually.

	
  

	
d.

	
Return of Bank Property.  If and when Executive ceases, for any reason, to be employed by the Bank, Executive must return to the Bank all keys, pass cards, identification cards and any other property of the Bank.  At the same time, Executive also must return to the Bank all originals and copies (whether in hard copy, electronic or other form) of any documents, drawings, notes, memoranda, designs, devices, diskettes, tapes, manuals, and specifications which constitute

  

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proprietary information or material of the Bank.  The obligations in this Section 8(d) include the return of documents and other materials that may be in his desk at work, in his car, in place of residence, or in any other location under his control.

	
  

	
e.

	
Cause.  “Cause” includes any one or more of the following:

	
  

	
(1)

	
Executive’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit or willful violation of any law, rule or regulation (other than traffic violations or similar offenses);

	
  

	
(2)

	
Executive’s intentional failure to perform stated duties;

	
  

	
(3)

	
The material breach by the Executive of this Agreement;

	
  

	
(4)

	
Executive being subject to a final cease and desist order;

	
  

	
(5)

	
The exhibition by the Executive of a standard of behavior within the scope of his employment that is materially disruptive to the orderly conduct of the Bank’s business operations (including, without limitation, substance abuse or sexual misconduct) to a level which, in the Board of Directors’ good faith and reasonable judgment is materially detrimental to the Bank’s best interest, that, if susceptible of cure remains uncured 10 days following written notice to the Executive of such specific inappropriate behavior; or

	
  

	
(6)

	
The failure of the Executive to devote his full business time and attention to his employment as provided under this Agreement that, if susceptible of cure, remains uncured 10 days following written notice to the Executive of such failure.

In order for the Board of Directors to make a determination that termination shall be for Cause under subpart (6) above, the Board must provide the Executive with an opportunity to meet with the Board in person.

	
  

	
f.

	
Good Reason.  “Good Reason” means any one or more of the following:

	
  

	
(1)

	
Reduction of Executive’s Base Salary;

	
  

	
(2)

	
A material diminution in the authority, responsibilities or duties of the Executive in relationship to the authority, duties and responsibilities of other Market Presidents of the Bank on the date hereof, without the Executive’s consent;

	
  

	
(3)

	
A material breach or violation of this Agreement by the Bank that is not remedied within 10 days after the receipt of written notice by the Bank to cure; or

	
  

	
(4)

	
A non-consensual relocation or transfer of Executive’s principal place of employment that would require Executive to commute on a regular basis more than thirty (30) miles each way from Morristown, Tennessee.

  

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Provided that the Executive shall provide notice to the Bank of the existence of the condition described above within 30 days of the initial existence of the condition, upon the notice of which the Bank shall have 30 days to remedy the condition.

	
9.

	
Confidentiality.  Executive will not, at any time during and after the Term, use for his own purposes or disclose to any other person or entity any confidential business information concerning the Bank or HomeTrust or their business operations, unless (1) the Bank or HomeTrust consents in writing to the use or disclosure of such confidential information; (2) the use or disclosure is consistent with Executive’s duties under this Agreement; (3) disclosure is required by law or court order; or (4) the information is made or otherwise becomes public.  For purposes of this Agreement, confidential business information includes, without limitation, information concerning all aspects of current and future operations, information on asset and investment management practices, marketing plans, pricing structure and technology of either the Bank or HomeTrust.

	
10.

	
Restrictive Covenants.

	
  

	
a.

	
Competitive Activities.  During the period of his employment with the Bank and two years thereafter, Executive will not, directly or indirectly, as a founder, shareholder, director, officer, employee, partner, agent, consultant, creditor or otherwise, provide employment, consulting, advisory or other similar services within a 50 miles radius of any branch or office location of the Bank, to any person or entity engaged in any business that is competitive with the business of the Bank or HomeTrust, as conducted during the Term or as conducted as of the date of termination of employment, including any preliminary steps associated with the formation of a new financial institution.

	
  

	
b.

	
Non-Interference.  During the period of his employment with the Bank and for two years thereafter, Executive will not, directly or indirectly, encourage or entice, or attempt to encourage or entice, (i) any employee or the Bank or HomeTrust to terminate his/her employment with the Bank or HomeTrust, or (ii) any person or entity to terminate, cancel, rescind, revoke, diminish or reduce the level of its business or contractual relationships with the Bank or HomeTrust.

	
11.

	
Enforcement.

	
  

	
a.

	
The Bank and Executive stipulate that, in light of all the facts and circumstances of the relationship between Executive and the Bank, the agreements referred to in Sections 9 and 10 (including without limitation their scope and duration) are fair and reasonably necessary for the protection of the Bank’s and HomeTrust’s confidential information, goodwill and other protectable interests.  If a court of competent jurisdiction should decline to enforce any of those covenants and agreements, Executive and the Bank request the court to reform these provisions to maximize enforceable.

  

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b.

	
Executive acknowledges the Bank and/or HomeTrust will suffer immediate and irreparable harm that will not be compensable by damages alone if Executive repudiates or breaches any of the provisions of Section 9 or 10 or threatens or attempts to do so.  For this reason, under these circumstances, the Bank, in addition to and without limitation of any other rights, remedies or damages available to it at law or in equity, will be entitled to obtain temporary, preliminary and permanent injunctions in order to prevent or restrain the breach, and the Bank will not be required to post a bond as a condition for the granting of this relief.

	
12.

	
Covenants.  Executive specifically acknowledges the receipt of adequate consideration for the covenants contained in Sections 9 and 10 and that the Bank is entitled to require him to comply with such Sections.  Sections 9, 10 and 11 will survive termination of this Agreement.  Executive represents that if his employment is terminated, whether voluntarily or involuntarily, Executive has experience and capabilities sufficient to enable Executive to obtain employment in areas which do not violate this Agreement and that the Bank’s enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.

	
13.

	
Regulatory Action.  Notwithstanding any other provisions of this Agreement:

	
  

	
a.

	
If Executive is suspended and/or temporarily prohibited from participating in the Bank’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (“FDIA”), 12 U.S.C. § 1818(e)(3) and (g)(1), the Bank’s obligations under this Agreement shall be suspended as of the date of service of such notice unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, the Bank may in its discretion (i) pay Executive all or part of the compensation withheld while its contract obligations were suspended or (ii) reinstate (in whole or in part) any of its obligations which were suspended;

	
  

	
b.

	
If the Executive is removed and/or permanently prohibited from participating in the conduct of the affairs of a depository institution by an order issued under Section 8(e)(4) or (g)(1) of FDIA, 12 U.S.C. 1818(e)(4) and (g)(1), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected;

	
  

	
c.

	
If the Bank is in default (as defined in Section 3(x)(1) of the FDIA), all obligations of the Bank under this Agreement shall terminate as of the date of default, but this provision shall not affect any vested rights of the contracting parties; and

	
  

	
d.

	
All obligations of the Bank under this Agreement shall be terminated, except to the extent determined that continuation of this Agreement is necessary for the continued operation of the Bank: (i) by the Comptroller of the Currency or his or her designee(the “OCC”) , at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Bank under

  

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the authority contained in Section 13(c) of FDIA; or (ii) by the OCC, at the time the OCC approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the OCC to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by any such action.

 

	
14.

	
Miscellaneous Provisions.

	
  

	
a.

	
Tax Withholding.  All actual and deemed compensation payments made to Executive by the Bank or HomeTrust under this Agreement or otherwise shall be subject to the customary tax withholding policies and practices of the Bank and HomeTrust.  Consistent herewith, the Bank and/or HomeTrust may make additional tax withholding from cash compensatory payments to be made to Executive to cover any withholding obligation relating to non-cash compensatory payments or benefits being provided to Executive from the Bank or HomeTrust.

	
  

	
b.

	
Entire Agreement.  This Agreement constitutes the entire understanding and agreement between the parties concerning its subject matter and supersedes all prior agreements, correspondence, representations, or understandings between the parties relating to its subject matter.

	
  

	
c.

	
Prior Agreements; Waiver and Release.  This Agreement supersedes and replaces in their entirety any and all previous agreements between Executive and Jefferson, JFB or the Bank regarding compensation or terms of employment of Executive, including, without limitation, the Prior Employment Agreements and any other agreements regarding change in control payments, severance payments, supplemental life insurance benefits, supplemental retirement benefits, and/or other benefits (collectively, the “Prior Agreements”); provided, however, that in the event this Agreement becomes void in accordance with Section 3(b) above, the Prior Agreements between Jefferson, JFB and Executive shall remain in full force and effect.  Executive hereby waives any right or entitlement to any severance payments, compensation, monies, or benefits under the Prior Agreements.  Executive expressly waives and releases the Bank and HomeTrust, from any and all claims or obligations arising out of the Prior Agreements.

	
  

	
d.

	
Binding Effect.  This Agreement will bind and inure to the benefit of the Bank, and its successors and assigns and Executive and his heirs and legal representatives.

	
  

	
e.

	
Litigation Expenses.  If either party seeks to enforce any provision of this Agreement or to collect any amount claimed to be due under it, the party who has obtained a legal judgment in its favor or settlement will be entitled to reimbursement from the non-prevailing party for any and all of its out-of-pocket expenses and costs including, without limitation, reasonable attorneys’ fees and costs incurred in connection with the enforcement or collection.

  

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f.

	
Waiver.  Any waiver by a party of its rights under this Agreement must be written and signed by the party waiving its rights.  A party’s waiver of the other party’s breach of any provision of this Agreement will not operate as a waiver of any other breach by the breaching party.

	
  

	
g.

	
Assignment.  The services to be rendered by Executive under this Agreement are unique and personal.  Accordingly, Executive may not assign any of his rights or duties under this Agreement.

	
  

	
h.

	
Amendment.  This Agreement may be modified only through a written instrument signed by both parties.

	
  

	
i.

	
Severability.  The provisions of this Agreement are severable.  The invalidity of any provision will not affect the validity of other provisions of this Agreement.

	
  

	
j.

	
Governing Law and Venue.  This Agreement will be governed by and construed in accordance with laws of the state of Tennessee, except to the extent that certain regulatory matters may be governed by federal law.

	
  

	
k.

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

	
  

	
l.

	
Counsel Review.  Executive acknowledges that he has had the opportunity to consult with independent counsel with respect to the negotiation, preparation, and execution of this Agreement.

	
  

	
m.

	
IRC Section 409A.  The provisions of this Agreement are intended to comply with Section 409A of the U.S. Internal Code of 1986, as amended, U.S. Treasury regulations issued thereunder, and related U.S. Internal Revenue Service guidance (“409A Rules”).  Such provisions will be interpreted and applied in a manner consistent with the 409A Rules so that payments and benefits provided to Executive hereunder will not, to the greatest extent possible, be subject to taxation under such Section 409A, including payments excluded from the 409A Rules as separation pay on account of an involuntary separation from service or as short-term deferral.  Notwithstanding any contrary provisions hereof, this Agreement may be amended if and to the extent the Bank determines that such amendment is necessary to comply with the 409A Rules.  In addition, each payment hereunder is intended to constitute a separate payment from each other payment for purposes of Treasury Regulation § 1.409A-2(b)(2).

	
  

	
 

	

If the Executive is a “Specified Employee” within the meaning of the 409A Rules on the date of the Executive’s separation from service (“Separation Date”), and if an exemption from the six month delay requirement of the 409A Rules is not available, then no such payment shall be made or commence during the period beginning on the Separation Date and ending on the date that is six months

 

  

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following the Separation Date or, if earlier, on the date of the Executive’s death.  The amount of any payment that would otherwise be paid to the Executive during this period shall instead be paid to the Executive on the first day of the first calendar month following the end of the period.

	
  

	
[Signatures appear on following page]

  

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This Fully Restated Employment Agreement is executed as of May 29, 2014.

	  	  	
HOMETRUST BANK

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	
By:

	
/s/ Dana L. Stonestreet

	  	  	  	
Dana L. Stonestreet

	  	  	
Its:

	
President and Chief Executive Officer

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	
EXECUTIVE:

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	
/s/ Anderson L. Smith

	  	  	
Anderson L. Smith

  

10EXHIBIT 10.1

 

CONSULTING AGREEMENT

 

This CONSULTING AGREEMENT
(this “Agreement”) is made and entered into as of June 1, 2014 (the “Effective Date”), by
and between Virtus Oil & Gas Corp., a Nevada corporation (the “Company”), and Brett A. Murray & Associates,
Inc., a Colorado corporation (“Consultant”).

 

RECITALS:

 

A.          The Company is a
development stage company seeking oil and gas exploration opportunities.

 

B.          Consultant provides
the services of a professional “landman” for oil and gas exploration companies and has expertise in exploration and
production activities.

 

C.          On November 14, 2013,
the Company entered into an agreement to purchase an 87.5% working interest in oil and gas leases covering approximately 36,787
acres in Iron County, Utah; and on May 6, 2014, the Company entered into another agreement to purchase an 87.5% working interest
in oil and gas leases covering approximately 18,690.50 acres in Iron County, Utah (as used herein, the term “Property”
refers to the aggregate 55,477.50 acres in Iron County, Utah comprised by the two agreements).

 

D.          The Company desires
to engage Consultant to provide certain consulting services with respect to the Property, and Consultant desires to accept such
engagement, on the terms and conditions set forth in this Agreement.

 

AGREEMENT:

 

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

 

1.          Engagement. The Company hereby engages Consultant
as an independent consultant to provide certain consulting services with respect to the Property as more fully described on Exhibit
A attached hereto (collectively, the “Services”). Consultant will provide the Services through one or more
of its employees, as Consultant may determine in its reasonable discretion from time to time; provided, that the person who shall
serve as the principal contact and provide oversight of all Services shall be its President, Brett A Murray (“Murray”),
along with consultants or employees of Consultant who may provide occasional administrative services in direct support of Murray’s
efforts. Consultant shall provide no less than forty-five (45) days’ prior written notice to the Company of any change in
its principal contact for the Services. During the Consulting Term (as defined in Section 3 below), Consultant shall render the
Services to the Company upon the terms and conditions set forth herein. The Company will not treat Consultant as its employee
for federal tax purposes or any other purposes. Consultant will not allow any of its employees, consultants or officers to hold
himself or herself out as an employee of the Company. This engagement does not create an agency relationship, and neither Consultant
nor any of its officers, employees or consultants shall have authority to bind the Company without the Company’s prior consent
or authorization (including any authorization by email). Consultant shall not have the right to participate in management, policy
affairs, day-to-day decisions, or make any statements, assurances or commitments on the Company’s behalf, other than as
reasonably related to the Services agreed to and described on Exhibit “A.” Consultant and Murray each hereby consents
to have its and his name and bio listed on the Company’s website and in the Company’s marketing materials.

 

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2.          Method of Performance.
During the Consulting Term, the principal contact for Consultant (i.e., initially Murray) shall have the title of “Chief
Operations Officer” of the Company and shall provide the Company with the Services as more fully described on Exhibit
A attached hereto. Consultant, as an independent contractor, may determine the method, manner and means of performing the Services
to be carried out for the Company. In performing the Services, Consultant and each of its employees shall (a) act in the Company’s
best interest at all times, (b) conduct themselves at the highest professional standards of ethics and integrity, (c) use
their good faith efforts and skills to preserve the business of the Company and the goodwill of employees and persons having business
relations with the Company, (d) comply with all written Company codes of conduct and all written Company policies and procedures
that may be implicated by their provision of the Services, and (e) conduct the Services in compliance with all applicable state
and federal laws.

 

3.          Term. Unless
extended pursuant to this Section or terminated earlier pursuant to Section 4 below, the initial period of Consultant’s engagement
under this Agreement shall expire on the day prior to the one (1) year anniversary of the Effective Date (the “Initial
Term”). Upon expiration of the Initial Term, this Agreement will automatically renew for consecutive one (1) year terms
(each a “Renewal Term”) unless either party provides the other party written notice of its intention to not
to renew this Agreement at least thirty (30) days prior to the end of the Initial Term, or at least sixty (60) days prior to the
end of any Renewal Term once the Agreement has been continued beyond the Initial Term. The period from the Effective Date until
the end of the Initial Term, or any applicable Renewal Term, as the case may be, is hereinafter referred to as the “Consulting
Term.”

 

4.          Termination.

 

(a)          Early Termination.
In the event any party fails to comply with any of the terms of this Agreement and fails to cure such non-compliance to
the reasonable satisfaction of the non-breaching party within fifteen (15) days after receipt of written notice of such
breach, the non-breaching party may immediately terminate this Agreement.

 

(b)          Termination
for Cause. The Company may immediately terminate this Agreement for “cause” by giving Consultant written notice
of such conduct and the Company’s intention to terminate. For purposes of this Agreement, “cause” shall
mean, with respect to Consultant (including for this purpose any of the following actions taken by Murray or any other employee),
the commission of fraud against the Company, or the misappropriation, theft or embezzlement of the assets of the Company, or the
performance of illegal or fraudulent acts, criminal conduct, or willful misconduct materially injurious to the business of the
Company.

 

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(c)          No
Cause Termination.

 

(i)          During the Initial Term, this Agreement may be terminated at any time by either party by providing the other party with
at least thirty (30) days written notice of such party’s intention to terminate this Agreement.

 

(ii)          During any Renewal Term, this Agreement may be terminated at any time by either party by providing the other party with
at least sixty (60) days written notice of such party’s intention to terminate this Agreement.

 

(iii)          During any notice period, Consultant agrees to use its reasonable best efforts to continue work for the Company, and the
Company agrees to continue compensating Consultant until the termination date with the same compensation as before the notice was
given.

 

(d)          Effect
of Termination. Upon expiration or termination of this Agreement, neither party shall have any further obligations hereunder,
except for obligations incurred prior to the date of expiration or termination, and obligations, promises, or covenants contained
herein which expressly extend beyond the term of this Agreement, including, but not limited to Sections 7 and 8 below.

 

5.          Compensation for Services.

 

(a)          Consulting Fee.
During the Consulting Term, the Company will pay to Consultant a monthly fee in the amount of Nine Thousand Dollars ($9,000) per
month (the “Consulting Fee”) for performing the Services, based upon an estimated average of two (2) days of
work per week. The Consulting Fee shall be paid monthly in arrears no later than the fifth (5th) day of the month immediately
following the calendar month during which the Services were performed.

 

(b)          Stock Issuance.
In addition to the Consulting Fee, the Company will issue to Consultant up to two million (2,000,000) shares of the Company’s
common stock, $0.001 par value per share (“Common Stock”), on the following schedule: (i) one hundred twenty
five thousand (125,000) shares of Common Stock on the Effective Date; (ii) three hundred seventy five thousand (375,000) shares
of Common Stock on the one (1) year anniversary of the Effective Date; and (iii) two hundred fifty thousand (250,000) shares of
Common Stock on each six-month anniversary thereafter, up to a total of two million (2,000,000) shares (collectively, the “Shares”).
This Agreement must remain in effect on the date Shares are to be issued to Consultant for Consultant to be eligible to receive
the Shares. Upon the termination of this Agreement, Consultant will not be eligible to receive any Shares not previously issued
to Consultant.

 

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(c)          Commission
Compensation. Consultant is eligible to receive commission compensation based on “Transactions” (defined below)
entered into between the Company and an “Eligible Contact” (defined below) related to the Property and/or “Other
Properties” (defined below).

 

The term “Transactions”
or “Transaction” as used herein refers to the entry by the Company into an agreement or transaction that results in
the Company acquiring by lease or purchase a working, royalty, or other ownership interest in any mineral lease or other real
property on which minerals are capable of being exploited, or the Company selling or leasing such an interest to a third party
for value, including by way of example, any sales agreements, purchase contracts, and mineral leases.

 

The term “Eligible Contact”
as used herein refers to individuals whose original contact with the Company is through introduction by Consultant. Entities who
have previously done business with the Company and/or current employees of the Company (regardless of whether such prior business
was conducted while the employee was employed by the Company) are not “Eligible Contacts.”

 

The term “Other Properties”
as used herein refers to property that the Company and Consultant agree in writing will be subject to this Section 5(c). The term
“Other Properties” does not include the Property, unless there is a sale or other disposition of the Company’s
rights in the Property to a third party for value.

 

With respect to a Transaction or
Transactions for the sale, lease, or other disposition of the Property or Other Properties by the Company, the Company will pay
to Consultant a commission equal to 8% of the “Net Sale Price” (defined below) paid by the Eligible Contact(s) to the
Company. The “Net Sale Price Value” is defined as the gross purchase price paid in cash or drilling commitments by
the Eligible Contact(s) to the Company (or its designee) pursuant to the Contract(s), less brokerage and other professional fees
associated with the Transaction or Transactions. The 8% commission will be paid by the Company in cash within thirty (30) days
after the closing and the Company’s receipt of the proceeds from the Transaction or Transactions.

 

With respect to a Transaction or
Transactions for the purchase, lease, or other acquisition of Other Properties by the Company, the Company will pay to Consultant
a commission equal to 8% of the Net Purchase Price (defined below) paid by the Company to the Eligible Contact(s). The “Net
Purchase Price Value” is defined as the gross purchase price paid in cash or drilling commitments by the Company pursuant
to the Contract(s), less brokerage and other professional fees associated with the Transaction or Transactions. The 8% commission
will be paid by the Company to Consultant in cash at the same time as the Company’s other payments are due pursuant to the
Transaction or Transactions.

 

With respect to lease agreements
on the Property, the Company will assign to Consultant a 1% overriding royalty interest free and clear of all transportation expenses
and other deductions.

 

    	4

    	 

    

 

(d)          No Benefits. Consultant
is an independent contractor and, as such, Consultant shall not be entitled to participate in any employment-related benefits that
may be provided by the Company, including but not limited to, workers’ compensation insurance, unemployment compensation
insurance, vacation or sick pay, pension or profit sharing benefits, or any type of health, life or disability insurance.

 

(e)          Business Expense Reimbursement.
Consultant will be reimbursed for all customary and reasonable expenses actually incurred by it in the performance of the Services
as set forth in this Section 5(e). Consultant must obtain prior written approval from the CEO of the Company to be reimbursed for
a single expense in excess of $1,000, or aggregate quarterly expenses in excess of $5,000. Consultant must provide the Company
with receipts, or other sufficient documentation, regarding expenses to receive reimbursement. Such reimbursement will be paid
by the Company within ten (10) business days of receiving proper documentation from Consultant.

 

6.          Representations
and Warranties. Each of Consultant and Murray represents and warrants to the Company as of the Effective Date as follows:

 

(a)          The execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby have been duly and validly
authorized by Consultant. This Agreement has been duly executed and delivered by Consultant, and constitutes a legal, valid and
binding obligation of Consultant enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws and subject to the limitations imposed by law or equitable principles affecting the availability of
specific performance, injunctive relief and other equitable remedies. Consultant is not contractually prohibited from providing
the Services to the Company;

 

(b)          Consultant is acquiring
the Shares for investment for his own account, not as a nominee or agent, and not with the view to, or for resale in connection
with, any distribution thereof;

 

(c)          Consultant
has no present intention of selling, granting any participation interest in, or otherwise distributing the Shares;

 

(d)          Consultant
has received all information he considers necessary or appropriate for deciding whether to acquire the Shares;

 

(e)          Consultant
has had an opportunity to ask questions and receive answers from the Company regarding the Company’s business, management,
financial affairs and the terms and conditions of the issuance of the Shares;

 

(f)          Consultant
is sophisticated and well-informed and has such knowledge and experience in financial and business matters in general, and in investments
in businesses similar to the Company in particular, as are necessary to enable him to evaluate the merits and risks of an investment
in the Company;

 

    	5

    	 

    

 

(g)          Consultant
has no need for liquidity in his investment in the Company and he is able to bear the risk of such investment for an indefinite
period.  Consultant’s present financial condition is such that he is under no present or contemplated future need to
dispose of any portion of the Shares; and

 

(h)          Consultant
understands that the Shares have not been registered under the Securities Act of 1933, as amended, that the Shares are “restricted
securities” under applicable U.S. securities laws and that, pursuant to these laws, Consultant must hold the Shares indefinitely,
unless (i) the sale or other transfer of the Shares has been registered with the Securities Exchange Commission and qualified by
state authorities, or (ii) an exemption from such registration and qualification requirements is available.

 

7.          Consultant Obligations.
Consultant shall be solely liable for and shall bear all costs and expenses arising from (i) the breach of any covenant, obligation,
representation or warranty of Consultant under this Agreement; (ii) the negligence or willful misconduct of Consultant in connection
with Consultant’s performance of the Services during the Consulting Term; and/or (iii) the Company’s treatment of Consultant
as an independent contractor rather than treating Consultant as an employee for tax purposes. Notwithstanding anything to the contrary
in this Agreement or the constituent documents of the Company, the Company shall have no obligation to indemnify or defend Consultant
with respect to any such cost or expense.

 

8.          Confidential Information.
The Company will provide Consultant and its employees, including Murray, with certain Confidential Information (as defined below)
in order to allow Consultant to perform the Services. Each of Consultant and Murray acknowledges that the Confidential Information
is the property of the Company. Therefore, neither Consultant nor Murray shall disclose or permit to be disclosed, without the
prior written consent of the Board of Directors or Chief Executive Officer of the Company, any Confidential Information other than
as necessary to perform the Services. Each of Consultant and Murray agrees that during the Consulting Term and following the termination
of this engagement with the Company for any reason, they will not directly or indirectly use any Confidential Information for any
reason other than the advancement of the Company’s business interests. For purposes of this Agreement, the term “Confidential
Information” means, collectively, all information and data regarding the Company and its officers, directors, managers,
shareholders, partners, employees, affiliates, joint venturers, agents, representatives, independent contractors, subcontractors,
clients, customers, vendors, suppliers, developers, lenders, investors, budgets, research, analysis, studies, real and personal
properties, intellectual properties, licenses, license agreements, projects, expenses, fees, charges, pricing, assets, services,
computer hardware and software, data files, spreadsheets, operations, financial statements, marketing plans, methods, processes,
business plans, and financial performance, at any time obtained by Consultant in connection with Consultant’s engagement
by the Company. Notwithstanding the foregoing, the term Confidential Information shall not include any information that (a) is
or becomes generally available to the public (other than as a result of violation of this Agreement by Consultant or any of its
employees), or (b) Consultant receives on a nonconfidential basis from a source other than the Company that is not known by Consultant
to be bound by an obligation of secrecy or confidentiality. If Consultant is requested in any legal proceeding to disclose any
Confidential Information, Consultant agrees to give the Company reasonable notice of such request so that the Company may seek
an appropriate protective order. If Consultant is nonetheless compelled to disclose any Confidential Information by a court, subpoena,
legal proceeding or governmental body having the authority to order such disclosure, Consultant may disclose the Confidential Information
without liability hereunder; provided, however, that Consultant gives the Company written notice of the Confidential
Information to be disclosed as far in advance of its disclosure as is practicable and, upon the Company’s request, Consultant
uses its good faith efforts to obtain assurances that confidential treatment will be accorded to the Confidential Information.

 

    	6

    	 

    

 

9.          Return
of Property to the Company. Upon the termination of this engagement with the Company for any reason, Consultant agrees to
promptly return to the Company all Company-owned property in its possession or control or the possession or control of any employee,
including without limitation, all Confidential Information. After the termination of this engagement with the Company, Consultant
will not retain copies of any Confidential Information or any other documents or property belonging to the Company.

 

10.          Independent
Contractor Status. Consultant shall be an independent contractor and not an employee, agent, joint venturer, or partner of
the Company by virtue of this Agreement. Nothing in this Agreement shall be interpreted or construed as creating or establishing
the relationship of employer and employee between the Company, on the one hand, and Consultant on the other hand. Neither Consultant
nor the Company has any authority to act for or on behalf of the other, nor to bind the other to any contract or in any other
manner without the express approval in writing of the other. The Company shall not be required to pay on account of Consultant
or any of its employees any costs, expenses or claims associated with the payment, on account of Consultant, of any unemployment
tax or other employees’ taxes required under law to be paid with respect to Consultant (or such employees); nor shall the
Company be required to withhold any monies from any payments made hereunder to Consultant for income tax purposes or with respect
to any other applicable deductions required by law.

 

11.          Choice
of Law. The parties agree that this Agreement shall be construed under the substantive laws of the State of Texas, without
regard to its conflicts of law principles.

 

12.          Jurisdiction and Venue. Any judicial proceeding brought by or against
either of the parties to this Agreement on any dispute arising out of this Agreement or any matter relating thereto shall be brought
in any federal or state court sitting or having jurisdiction in Dallas County, Texas, and by execution and delivery of this Agreement,
each of the parties hereto hereby accepts for itself the exclusive jurisdiction and venue of the aforesaid courts as trial courts,
and irrevocably agrees to be bound by any final non-appealable judgment rendered in connection with this Agreement. The provisions
of this Section 12 shall survive expiration or termination of this Agreement, regardless of the cause of such termination.

 

13.          Severability.
If any provision of this Agreement is declared or found to be illegal, unenforceable, or void, in whole or in part, then all parties
will be relieved of all obligations thereunder, but only to the extent such provision is illegal, unenforceable, or void. The
parties intend that this Agreement will be deemed amended by modifying any such illegal, unenforceable, or void provision to the
extent necessary to make it legal and enforceable while preserving its intent, or if such is not possible, by substituting therefor
another provision that is legal and enforceable and achieves the same objectives. Notwithstanding the foregoing, if the remainder
of this Agreement will not be affected by such declaration or finding and is capable of substantial performance, then each provision
not so affected will be enforced to the extent permitted by law.

 

    	7

    	 

    

 

14.          Waiver.
No delay or omission by either party to this Agreement to exercise any right or power under this Agreement will impair such right
or power or be construed as a waiver thereof. A waiver by any party to this Agreement of any of the covenants to be performed
by any other party or any breach thereof will not be construed to be a waiver of any succeeding breach thereof or of any other
covenant contained in this Agreement. All remedies provided for in this Agreement will be cumulative and in addition to and not
in lieu of any other remedies available to either party at law, in equity or otherwise.

 

15.          No
Assignment. Neither this Agreement nor any right or interest hereunder shall be assignable by Consultant or its beneficiaries
or legal representatives without the Company’s prior written consent. This Agreement may not be assigned by the Company
except with Consultant’s prior written consent. Any attempted assignment without the requisite consent shall be void and
of no effect.

 

16.          Notices.
Any notices, consents, demands, requests, approvals and other communications to be given under this Agreement by either party
to the other shall be deemed to have been duly given if given in writing and personally delivered or sent by mail (registered
or certified) or by a nationally recognized overnight delivery service, the business day on which the notice is actually received
by the party, or if given by certified mail, return receipt requested, postage prepaid, five (5) business days after posted with
the United States Postal Service, addressed as follows:

 

(a)           if to the Company, to:

 

Virtus Oil &
Gas Corp.

1517 San Jacinto
Street

Houston, Texas
77002

Attention: Rupert
Ireland, President and Chief Executive Officer

 

or to such other address
as the Company may have advised Consultant in writing; and

 

(b)           if to Consultant, to:

 

Brett A. Murray

Brett A. Murray & Associates, Inc.

210 W. Hargreaves St.

Holyoke, CO 80734

970-854-2667

970-854-2807 Fax

Bam@brettamurray.com

 

or to such other address
as Consultant may have advised the Company in writing.

 

    	8

    	 

    

 

17.          Entire Agreement. This Agreement
represents the entire agreement relating to the relationship between the Company and Consultant. No prior or subsequent promises,
representations, or understandings relative to any terms or conditions of Consultant’s engagement are to be considered binding
or part of this Agreement unless expressly agreed to in a writing signed by the parties.

 

18.          Amendment. This Agreement may
be amended only in a writing signed by the Company and Consultant.

 

19.          Counterparts. This Agreement
may be executed in multiple counterparts, each of which shall be deemed an original for all purposes and all of which shall be
deemed collectively to be one agreement. Signatures given by facsimile or portable document format (or similar format) shall be
binding and effective to the same extent as original signatures.

 

20.          Acknowledgment. By signing
below, the parties certify and represent that they have carefully read and considered the foregoing Agreement and fully understand
all provisions of this Agreement and understand the consequences of signing this Agreement, and have signed this Agreement voluntarily
and without coercion, undue influence, threat, or intimidation of any kind or type whatsoever.

 

[The Remainder of This Page Is Intentionally
Left Blank.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	9

    	 

    

 

IN WITNESS WHEREOF, the
Company and Consultant have executed this Agreement as of the Effective Date.

 

	COMPANY:	VIRTUS OIL & GAS CORP.
	 	a Nevada corporation
	 	 
	 	By: 	/s/ Rupert Ireland
	 	 	Name: Rupert Ireland
Title: President and Chief Executive
Officer

 

	CONSULTANT:	BRETT A. MURRAY & ASSOCIATES, INC.
	 	a Colorado corporation
	 	 
	 	By: 	/s/ Brett A. Murray
	 	 	Name: Brett A. Murray
Title: President

 

AGREED
AS TO SECTIONS 1, 2, 6 and 8:

 

 

/s/ Brett A. Murray

Brett A. Murray, Individually

 

 

 

 

 

    	10

    	 

    

 

EXHIBIT A

 

SERVICES

During the Consulting Term, Consultant shall provide the following Services:

 

		(a)	negotiating for the acquisition or divestiture of mineral rights, without any obligation to execute
such agreements on behalf of the Company;

		(b)	negotiating business agreements that provide for the exploration for and/or development of minerals,
without any obligation to execute such agreements on behalf of the Company;

		(c)	determining ownership in minerals through the research of public and private records;

		(d)	reviewing the status of title, curing title defects and otherwise reducing title risk associated
with ownership in minerals;

		(e)	managing rights and/or obligations derived from ownership of interests in minerals;

		(f)	unitizing or pooling of interests in minerals; and

		(g)	performing such other duties as may from time to time be assigned by the President of the Company.

The parties agree to use good faith
efforts to reach agreement on any additional services which the Company may require of Consultant beyond the scope of the above-mentioned
Services.

 

 

 

 

 

    	11

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