Document:

Exhibit 10.9

 

 

2013 EQUITY INCENTIVE PLAN

OF

SIGMA LABS, INC.

 

		1.	PURPOSES OF THE PLAN

 

The purposes of the 2013 Equity Incentive
Plan (the “Plan”) of Sigma Labs, Inc., a Nevada corporation (the “Company”), are to:

 

1.1           Encourage
selected employees, directors, consultants and advisers to improve operations and increase the profitability of the Company;

 

1.2           Encourage
selected employees, directors, consultants and advisers to accept or continue employment or association with the Company or its
Affiliates; and

 

1.3           Increase
the interest of selected employees, directors, consultants and advisers in the Company’s welfare through participation in
the growth in value of the common stock of the Company (the “Common Stock”). All references herein to stock or shares,
unless otherwise specified, shall mean Common Stock.

 

		2.	TYPES OF AWARDS; ELIGIBLE PERSONS

 

2.1           The
Administrator (as defined below) may, from time to time, take the following action, separately or in combination, under the Plan:
(i) grant “incentive stock options” (“ISOs”) intended to satisfy the requirements of Section 422 of the
Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”); (ii) grant “non-qualified
options” (“NQOs,” and together with ISOs, “Options”); (iii) grant or sell Common Stock subject to
restrictions (“restricted stock”) or without restrictions, and (iv) grant stock appreciation rights (any such right
would permit the holder to receive the excess of the fair market value of Common Stock on the exercise date over its fair market
value (or a greater base value) on the grant date (“SARs”)), either in tandem with Options or as separate and independent
grants. Any such awards may be made to employees, including employees who are officers or directors, and to individuals described
in Section 1 of the Plan who the Administrator believes have made or will make a contribution to the Company or any Affiliate (as
defined below); provided, however, that only a person who is an employee of the Company or any Affiliate at the date
of the grant of an Option is eligible to receive ISOs under the Plan. The term “Affiliate” as used in the Plan means
a parent or subsidiary corporation as defined in the applicable provisions (currently Sections 424(e) and (f), respectively) of
the Code. The term “employee” includes an officer or director who is an employee of the Company. The term “consultant”
includes persons employed by, or otherwise affiliated with, a consultant. The term “adviser” includes persons employed
by, or otherwise affiliated with, an adviser.

 

2.2           Except
as otherwise expressly set forth in the Plan, no right or benefit under the Plan shall be subject in any manner to anticipation,
alienation, hypothecation, or charge, and any such attempted action shall be void. No right or benefit under the Plan shall in
any manner be liable for or subject to debts, contracts, liabilities, or torts of any option holder or any other person except
as otherwise may be expressly required by applicable law.

 

    	 

    	 

    

  

		3.	STOCK SUBJECT TO THE PLAN; MAXIMUM NUMBER OF GRANTS

 

Subject to the provisions of Sections 6.1.1
and 8.2 of the Plan, the total number of shares of Common Stock which may be offered, or issued as restricted stock or unrestricted
stock on the exercise of Options or SARs under the Plan shall not exceed 30,000,000 shares of Common Stock. The shares subject
to an Option or SAR or otherwise granted under the Plan which expire, terminate or are cancelled unexercised shall become available
again for grants under the Plan. If shares of restricted stock awarded under the Plan are forfeited to the Company or repurchased
by the Company, the number of shares forfeited or repurchased shall again be available under the Plan. Where the exercise price
of an Option is paid by means of the optionee’s surrender of previously owned shares of Common Stock or the Company’s
withholding of shares otherwise issuable upon exercise of the Option as may be permitted herein, only the net number of shares
issued and which remain outstanding in connection with such exercise shall be deemed “issued” and no longer available
for issuance under the Plan. No eligible person shall be granted Options or other awards during any twelve-month period covering
more than 5,000,000 shares.

 

		4.	ADMINISTRATION

 

4.1           The
Plan shall be administered by the Board of Directors of the Company (the “Board”) or by a committee (the “Committee”)
to which administration of the Plan, or of part of thereof, is delegated by the Board (in either case, the “Administrator”).
The Board shall appoint and remove members of the Committee in its discretion in accordance with applicable laws. At the Board’s
discretion, the Committee may be comprised solely of “non-employee directors” within the meaning of Rule 16b-3 under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or “outside directors” within the
meaning of Section 162(m) of the Code. The Administrator may delegate non-discretionary administrative duties to such employees
of the Company as the Administrator deems proper and the Board, in its absolute discretion, may at any time and from time to time
exercise any and all rights and duties of the Administrator under the Plan.

 

4.2           Subject
to the other provisions of the Plan, the Administrator shall have the authority, in its discretion: (i) to grant Options and SARs
and grant or sell restricted stock or unrestricted stock; (ii) to determine the fair market value of the Common Stock subject to
Options or other awards; (iii) to determine the exercise price of Options granted, which shall be no less than the fair market
value of the Common Stock on the date of grant, the economic terms of SARs granted, which shall provide for a benefit of the appreciation
on Common Stock over not less than the value of the Common Stock on the date of grant, or the offering price of restricted stock;
(iv) to determine the persons to whom, and the time or times at which, Options or SARs shall be granted or restricted stock granted
or sold, and the number of shares subject to each Option or SAR or the number of shares of restricted stock or unrestricted stock
granted or sold; (v) to construe and interpret the terms and provisions of the Plan, of any applicable agreement and all Options
and SARs granted under the Plan, and of any restricted unrestricted stock award under the Plan; (vi) to prescribe, amend, and rescind
rules and regulations relating to the Plan; (vii) to determine the terms and provisions of each Option and SAR granted and award
of restricted stock or unrestricted stock (which need not be identical), including but not limited to, the time or times at which
Options and SARs shall be exercisable or the time at which the restrictions on restricted stock shall lapse; (viii) with the consent
of the grantee, to rescind any award or exercise of an Option or SAR and to modify or amend the terms of any Option, SAR or restricted
stock; (ix) to reduce the purchase price of restricted stock or unrestricted stock; (x) to accelerate or defer (with the consent
of the grantee) the exercise date of any Option or SAR or the date on which the restrictions on restricted stock lapse; (xi) to
issue shares of restricted stock to an optionee in connection with the accelerated exercise of an Option by such optionee; (xii)
to authorize any person to execute on behalf of the Company any instrument evidencing the grant of an Option. SAR or award of restricted
stock or unrestricted stock; (xiii) to determine the duration and purposes of leaves of absence which may be granted to participants
without constituting a termination of their employment for the purposes of the Plan; and (xiv) to make all other determinations
deemed necessary or advisable for the administration of the Plan, any applicable agreement, Option, SAR or award of restricted
stock or unrestricted stock.

 

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4.3           All
questions of interpretation, implementation, and application of the Plan or any agreement or Option, SAR or award of restricted
stock shall be determined by the Administrator, which determination shall be final and binding on all persons.

 

		5.	GRANTING OF OPTIONS AND SARS; AGREEMENTS

 

5.1           No
Options or SARs shall be granted under the Plan after ten (10) years from the date of adoption of the Plan by the Board.

 

5.2           Each
Option and SAR shall be evidenced by a written agreement, in form satisfactory to the Administrator, executed by the Company and
the person to whom such grant is made. In the event of a conflict between the terms or conditions of an agreement and the terms
and conditions of the Plan, the terms and conditions of the Plan shall govern.

 

5.3           Each
agreement shall specify whether the Option it evidences is an NQO or an ISO, provided, however, all Options granted
under the Plan to non-employee directors, consultants and advisers of the Company are intended to be NQOs.

 

5.4           Subject
to Section 6.3.3 with respect to ISOs, the Administrator may approve the grant of Options or SARs under the Plan to persons who
are expected to become employees, directors, consultants or advisers of the Company, but are not employees, directors, consultants
or advisers at the date of approval.

 

		6.	TERMS AND CONDITIONS OF OPTIONS AND SARS

 

Each Option and SAR granted under the Plan
shall be subject to the terms and conditions set forth in Section 6.1. NQOs and SARs shall also be subject to the terms and conditions
set forth in Section 6.2, but not those set forth in Section 6.3. ISOs shall also be subject to the terms and conditions set forth
in Section 6.3, but not those set forth in Section 6.2. SARs shall be subject to the terms and conditions of Section 6.4.

 

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6.1         Terms
and Conditions to Which All Options and SARs Are Subject. All Options and SARs granted under the Plan shall be subject to the
following terms and conditions:

 

6.1.1           Changes
in Capital Structure. Subject to Section 6.1.2, if the Common Stock of the Company is changed by reason of a stock split, reverse
stock split, stock dividend, recapitalization, combination or reclassification, or if the Company effects a spin-off of the Company’s
subsidiary, appropriate adjustments shall be made by the Administrator, in its sole discretion, in (a) the number and class of
shares of stock subject to the Plan and each Option and SAR outstanding under the Plan, and (b) the exercise price of each outstanding
Option; provided, that the Company shall not be required to issue fractional shares as a result of any such adjustments.
Any adjustment, however, in an outstanding Option shall be made without change in the total price applicable to the unexercised
portion of the Option but with a corresponding adjustment in the price for each share covered by the unexercised portion of the
Option. Adjustments under this Section 6.1.1 shall be made by the Administrator, whose determination as to the nature of the adjustments
that shall be made, and the extent thereof, shall be final, binding, and conclusive. If an adjustment under this Section 6.1.1
would result in a fractional share interest under an option or any installment, the Administrator’s decision as to inclusion
or exclusion of that fractional share interest shall be final, but no fractional shares of stock shall be issued under the Plan
on account of any such adjustment.

 

6.1.2           Corporate
Transactions. Except as otherwise provided in the applicable agreement, in the event of a Corporate Transaction (as defined
below), the Administrator shall notify each holder of an Option or SAR at least thirty (30) days prior thereto or as soon as may
be practicable. To the extent not then exercised all Options and SARs shall terminate immediately prior to the consummation of
such Corporate Transaction unless the Administrator determines otherwise in its sole discretion; provided. however,
that the Administrator, in its sole discretion, may (i) permit exercise of any Options or SARs prior to their termination, even
if such Options or SARs would not otherwise have been exercisable, and/or (ii) provide that all or certain of the outstanding Options
and SARs shall be assumed or an equivalent Option or SAR substituted by an applicable successor corporation or entity or any Affiliate
of the successor corporation or entity. A “Corporate Transaction” means (i) a liquidation or dissolution of the Company;
(ii) a merger or consolidation of the Company with or into another corporation or entity (other than a merger with a wholly-owned
subsidiary); (iii) a sale of all or substantially all of the assets of the Company; or (iv) a purchase or other acquisition of
more than 50% of the outstanding stock of the Company by one person or by more than one person acting in concert.

 

6.1.3           Time
of Option or SAR Exercise. Subject to Section 5 and Section 6.3.4, an Option or SAR granted under the Plan shall be exercisable
(a) immediately as of the effective date of the of the applicable agreement or (b) in accordance with a schedule or performance
criteria as may be set by the Administrator and specified in the applicable agreement. However, in no case may an Option or SAR
be exercisable until a written agreement in form and substance satisfactory to the Company is executed by the Company and the grantee.

 

6.1.4           Grant
Date. The date of grant of an Option or SAR under the Plan shall be the date approved or specified by the Administrator and
reflected as the effective date of the applicable agreement.

 

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6.1.5           Non-Transferability
of Rights. Except with the express written approval of the Administrator, which approval the Administrator is authorized to
give only with respect to NQOs and SARs, no Option or SAR granted under the Plan shall be assignable or otherwise transferable
by the grantee except by will or by the laws of descent and distribution. During the life of the grantee, an Option or SAR shall
be exercisable only by the grantee or permitted transferee.

 

6.1.6           Payment.
Except as provided below, payment in full, in cash, shall be made for all Common Stock purchased at the time written notice of
exercise of an Option is given to the Company and the proceeds of any payment shall be considered general funds of the Company.
The Administrator, in the exercise of its absolute discretion after considering any tax, accounting and financial consequences,
may authorize any one or more of the following additional methods of payment:

 

    (a)          Subject
to the Sarbanes-Oxley Act of 2002, acceptance of the optionee’s full recourse promissory note for all or part of the Option
price, payable on such terms and bearing such interest rate as determined by the Administrator (but in no event less than the minimum
interest rate specified under the Code at which no additional interest or original issue discount would be imputed), which promissory
note may be either secured or unsecured in such manner as the Administrator shall approve (including, without limitation, by a
security interest in the shares of the Company);

 

    (b)          Subject
to the discretion of the Administrator and the terms of the stock option agreement granting the Option, delivery by the optionee
of shares of Common Stock already owned by the optionee for all or part of the Option price, provided the fair market value (determined
as set forth in Section 6.1.9) of such shares of Common Stock is equal on the date of exercise to the Option price, or such portion
thereof as the optionee is authorized to pay by delivery of such stock;

 

    (c)          Subject
to the discretion of the Administrator, through the surrender of shares of Common Stock then issuable upon exercise of the Option,
provided the fair market value (determined as set forth in Section 6.1.9) of such shares of Common Stock is equal on the date of
exercise to the Option price, or such portion thereof as the optionee is authorized to pay by surrender of such stock; and

 

    (d)          By
means of so-called cashless exercises as permitted under applicable rules and regulations of the Securities and Exchange Commission
and the Federal Reserve Board.

 

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6.1.7           Withholding
and Employment Taxes. At the time of exercise and as a condition thereto, or at such other time as the amount of such obligation
becomes determinable, the grantee of an Option or SAR shall remit to the Company in cash all applicable federal and state withholding
and employment taxes. Such obligation to remit may be satisfied, if authorized by the Administrator in its sole discretion, after
considering any tax, accounting and financial consequences, by the holder’s (i) delivery of a promissory note in the required
amount on such terms as the Administrator deems appropriate, (ii) tendering to the Company previously owned shares of Common Stock
or other securities of the Company with a fair market value equal to the required amount, or (iii) agreeing to have shares of Common
Stock (with a fair market value equal to the required amount), which are acquired upon exercise of the Option or SAR, withheld
by the Company.

 

6.1.8           Other
Provisions. Each Option and SAR granted under the Plan may contain such other terms, provisions, and conditions not inconsistent
with the Plan as may be determined by the Administrator, and each ISO granted under the Plan shall include such provisions and
conditions as are necessary to qualify the Option as an “incentive stock option” within the meaning of Section 422
of the Code.

 

6.1.9           Determination
of Value. For purposes of the Plan, the fair market value of Common Stock or other securities of the Company shall be determined
as follows:

 

    (a)          If
the stock of the Company is listed on a securities exchange or is regularly quoted by a recognized securities dealer, and selling
prices are reported, its fair market value shall be the closing price of such stock on the date the value is to be determined,
but if selling prices are not reported, its fair market value shall be the mean between the high bid and low asked prices for such
stock on the date the value is to be determined (or if there are no quoted prices for the date of grant, then for the last preceding
business day on which there were quoted prices).

 

   (b)          In
the absence of an established market for the stock, the fair market value thereof shall be determined in good faith by the Administrator,
with reference to the Company’s net worth, prospective earning power, dividend-paying capacity, and other relevant factors,
including the goodwill of the Company, the economic outlook in the Company’s industry, the Company’s position in the
industry, the Company’s management, and the values of stock of other corporations in the same or a similar line of business.

 

6.1.10         Option
and SAR Term. No Option or SAR shall be exercisable more than 10 years after the date of grant, or such lesser period of time
as is set forth in the applicable agreement (the end of the maximum exercise period stated in the agreement is referred to in the
Plan as the “Expiration Date”).

 

6.2         Terms
and Conditions to Which Only NQOs and SARs Are Subject. Options granted under the Plan which are designated as NQOs and SARs
shall be subject to the following terms and conditions:

 

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6.2.1           Exercise
Price. The exercise price of an NQO and the base value of an SAR shall be the amount determined by the Administrator as specified
in the option or SAR agreement, but shall not be less than the fair market value of the Common Stock on the date of grant (determined
under Section 6.1.9).

 

6.2.2           Termination
of Employment. Except as otherwise provided in the applicable agreement, if for any reason a grantee ceases to be employed
by the Company or any of its Affiliates, Options that are NQOs and SARs held at the date of termination (to the extent then exercisable)
may be exercised in whole or in part at any time within ninety (90) days of the date of such termination (but in no event after
the Expiration Date). For purposes of this Section 6.2.2, “employment” includes service as a director, consultant or
adviser. For purposes of this Section 6.2.2, a grantee’s employment shall not be deemed to terminate by reason of the grantee’s
transfer from the Company to an Affiliate, or vice versa, or sick leave, military leave or other leave of absence approved by the
Administrator, if the period of any such leave does not exceed ninety (90) days or, if longer, if the grantee’s right to
reemployment by the Company or any Affiliate is guaranteed either contractually or by statute.

 

6.3        Terms
and Conditions to Which Only ISOs Are Subject. Options granted under the Plan which are designated as ISOs shall be subject
to the following terms and conditions:

 

6.3.1           Exercise
Price. The exercise price of an ISO shall not be less than the fair market value (determined in accordance with Section 6.1.9)
of the stock covered by the Option at the time the Option is granted. The exercise price of an ISO granted to any person who owns,
directly or by attribution under the Code (currently Section 424(d)), stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or of any Affiliate (a “Ten Percent Stockholder”) shall
in no event be less than one hundred ten percent (110%) of the fair market value (determined in accordance with Section 6.1.9)
of the stock covered by the Option at the time the Option is granted.

 

6.3.2           Disqualifying
Dispositions. If stock acquired by exercise of an ISO granted pursuant to the Plan is disposed of in a “disqualifying
disposition” within the meaning of Section 422 of the Code (a disposition within two (2) years from the date of grant of
the Option or within one year after the issuance of such stock on exercise of the Option), the holder of the stock immediately
before the disposition shall promptly notify the Company in writing of the date and terms of the disposition and shall provide
such other information regarding the Option as the Company may reasonably require.

 

6.3.3           Grant
Date. If an ISO is granted in anticipation of employment as provided in Section 5.4, the Option shall be deemed granted, without
further approval, on the date the grantee assumes the employment relationship forming the basis for such grant, and, in addition,
satisfies all requirements of the Plan for Options granted on that date.

 

6.3.4           Term.
Notwithstanding Section 6.1.10, no ISO granted to any Ten Percent Stockholder shall be exercisable more than five (5) years after
the date of grant.

 

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6.3.5           Termination
of Employment. Except as otherwise provided in the stock option agreement, if for any reason an optionee ceases to be employed
by the Company or any of its Affiliates, Options that are ISOs held at the date of termination (to the extent then exercisable)
may be exercised in whole or in part at any time within 90 days of the date of termination (but in no event after the Expiration
Date). For purposes of this Section 6.3.5, an optionee’s employment shall not be deemed to terminate by reason of the optionee’s
transfer from the Company to an Affiliate, or vice versa, or sick leave, military leave or other leave of absence approved by the
Administrator, if the period of any such leave does not exceed ninety (90) days or, if longer, if the optionee’s right to
reemployment by the Company or any Affiliate is guaranteed either contractually or by statute.

 

6.4         Terms
and Conditions Applicable Solely to SARs. In addition to the other terms and conditions applicable to SARs in this Section
6, the holder shall be entitled to receive on exercise of an SAR only Common Stock at a fair market value equal to the benefit
to be received by the exercise.

 

		7.	MANNER OF EXERCISE

 

7.1           An
optionee wishing to exercise an Option or SAR shall give written notice to the Company at its principal executive office, to the
attention of the officer of the Company designated by the Administrator, accompanied by payment of the exercise price and/or withholding
taxes as provided in Sections 6.1.6 and 6.1.7. The date the Company receives written notice of an exercise hereunder accompanied
by the applicable payment will be considered as the date such Option or SAR was exercised.

 

7.2           Promptly
after receipt of written notice of exercise and the applicable payments called for by Section 7.1, the Company shall, without stock
issue or transfer taxes to the holder or other person entitled to exercise the Option or SAR, deliver to the holder or such other
person a certificate or certificates for the requisite number of shares of Common Stock. A holder or permitted transferee of an
Option or SAR shall not have any privileges as a stockholder with respect to any shares of Common Stock to be issued until the
date of issuance (as evidenced by the appropriate entry on the books of the Company or a duly authorized transfer agent) of such
shares.

 

		8.	STOCK

 

8.1         Grant
or Sale of Stock.

 

8.1.1           No
awards of Common Stock shall be granted under the Plan after ten (10) years from the date of adoption of the Plan by the Board.

 

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8.1.2           The
Administrator may issue Common Stock under the Plan as a grant or for such consideration (including services, and, subject to the
Sarbanes-Oxley Act of 2002, promissory notes) as determined by the Administrator. Common Stock issued under the Plan shall be subject
to the terms, conditions and restrictions determined by the Administrator. The restrictions, if any, may include restrictions concerning
transferability, repurchase by the Company and forfeiture of the shares issued, together with such other restrictions as may be
determined by the Administrator. If shares are subject to forfeiture or repurchase by the Company, all dividends or other distributions
paid by the Company with respect to the shares may be retained by the Company until the shares are no longer subject to forfeiture
or repurchase, at which time all accumulated amounts shall be paid to the recipient. All Common Stock issued pursuant to this Section
8 shall be subject to a purchase or grant agreement, which shall be executed by the Company and the prospective recipient of the
Common Stock prior to the delivery of certificates representing such stock to the recipient. The purchase or grant agreement may
contain any terms, conditions, restrictions, representations and warranties required by the Administrator. The certificates representing
the shares shall bear any legends required by the Administrator. The Administrator may require any purchaser or grantee of Common
Stock to pay to the Company in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding
requirements. If the purchaser or grantee fails to pay the amount demanded, the Administrator may withhold that amount from other
amounts payable by the Company to the purchaser or grantee, including salary, subject to applicable law. With the consent of the
Administrator in its sole discretion, a purchaser or grantee may deliver Common Stock to the Company to satisfy this withholding
obligation. Upon the issuance of Common Stock, the number of shares reserved for issuance under the Plan shall be reduced by the
number of shares issued.

 

8.2           Changes
in Capital Structure. In the event of a change in the Company’s capital structure, as described in Section 6.1.1, appropriate
adjustments shall be made by the Administrator, in its sole discretion, in the number and class of restricted stock subject to
the Plan and the restricted stock outstanding under the Plan; provided, however, that the Company shall not be required
to issue fractional shares as a result of any such adjustments.

 

8.3           Corporate
Transactions. In the event of a Corporate Transaction, as defined in Section 6.1.2 hereof, to the extent not previously forfeited,
all restricted stock shall be forfeited immediately prior to the consummation of such Corporate Transaction unless the Administrator
determines otherwise in its sole discretion; provided, however, that the Administrator, in its sole discretion, may
remove any restrictions as to any restricted stock. The Administrator may, in its sole discretion, provide that all outstanding
restricted stock participate in the Corporate Transaction with an equivalent stock substituted by an applicable successor corporation
subject to the restriction.

 

		9.	EMPLOYMENT OR CONSULTING RELATIONSHIP

 

Nothing in the Plan or any Option or award
of Common Stock granted under the Plan shall interfere with or limit in any way the right of the Company or of any of its Affiliates
to terminate the employment, consulting or advising of any recipient thereof or restricted stock holder at any time, nor confer
upon any recipient, optionee or restricted stock holder any right to continue in the employ of, or consult with, or advise, the
Company or any of its Affiliates.

 

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		10.	CONDITIONS UPON ISSUANCE OF SHARES

 

10.1         Securities
Act. Shares of Common Stock shall not be issued pursuant to the exercise of an Option or other award under the Plan unless
the exercise of such Option or payment under the awards, the receipt of Common Stock and the issuance and delivery of such shares
pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as
amended (the “Securities Act”).

 

10.2         Non-Compete
Agreement. As a further condition to the receipt of Common Stock pursuant to the exercise of an Option or any other award under
the Plan, the optionee or recipient may be required not to render services for any organization, or engage directly or indirectly
in any business, competitive with the Company at any time during which (i) an Option is outstanding to such Optionee and for six
(6) months after any exercise of an Option or the receipt of Common Stock pursuant to the exercise of an Option or other award
and (ii) restricted stock is owned by such recipient and for six (6) months after the restrictions on such restricted stock lapse.
Failure to comply with this condition shall cause such Option and the exercise or issuance of shares thereunder and/or any other
award under the Plan to be rescinded and the benefit of such exercise, issuance or award to be repaid to the Company.

 

		11.	NON-EXCLUSIVITY OF THE PLAN

 

The adoption of the Plan shall not be construed
as creating any limitations on the power of the Company to adopt such other incentive arrangements as it may deem desirable, including,
without limitation, the granting of stock options other than under the Plan.

 

		12.	MARKET STAND-OFF

 

Each optionee, holder of an SAR or recipient
of Common Stock under the Plan, if so requested by the Company or any representative of the underwriters in connection with any
registration of the offering of any securities of the Company under the Securities Act, shall not sell or otherwise transfer any
shares of Common Stock so acquired during the 180-day period following the effective date of a registration statement of the Company
filed under the Securities Act; provided, however, that such restriction shall apply only to a registration statement
of the Company which includes securities to be sold on behalf of the Company to the public in an underwritten public offering under
the Securities Act and the restriction period shall not exceed 90 days after the registration statement becomes effective.

 

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		13.	AMENDMENTS TO PLAN

 

The Board may at any time amend, alter,
suspend or discontinue the Plan. Without the consent of an optionee, holder of an SAR or holder of restricted stock, no amendment,
alteration, suspension or discontinuance may adversely affect such person’s outstanding Option(s), SAR(s) or the terms applicable
to restricted stock except to conform the Plan and ISOs granted under the Plan to the requirements of federal or other tax laws
relating to ISOs. No amendment, alteration, suspension or discontinuance shall require stockholder approval unless (a) stockholder
approval is required to preserve incentive stock option treatment for federal income tax purposes or (b) the Board otherwise concludes
that stockholder approval is advisable.

 

		14.	EFFECTIVE DATE OF PLAN; TERMINATION

 

The Plan shall become effective upon adoption
by the Board; provided, however, that no Option or SAR or other award under the Plan shall be exercisable unless
and until written consent of the stockholders of the Company, or approval of stockholders of the Company voting at a validly called
stockholders’ meeting, is obtained within twelve (12) months after adoption by the Board. If any Options, SARs or other awards
are so granted and stockholder approval shall not have been obtained within twelve (12) months of the date of adoption of the Plan
by the Board, such Options, SARs or other awards shall terminate retroactively as of the date they were granted. Awards may be
made under the Plan and exercise of Options, SARs or other awards shall occur only after there has been compliance with all applicable
federal and state securities laws. The Plan (but not Options and SARs previously granted under the Plan) shall terminate ten (10)
years from the date of its adoption by the Board. Termination shall not affect any outstanding Options or SARs or the terms applicable
to other previously made awards under the Plan.

 

    	11Exhibit 10.10 

 

 

 

 

PERSONAL SERVICES CONSULTING AGREEMENT

PSCA.2012.011.MYA

01 June 2012

 

This Personal Services Consulting Agreement is entered into
as of 01 June 2012 between B6 Sigma, Inc., a Delaware corporation, having an office at 3900 Paseo del Sol, Santa Fe, New Mexico
87507 (hereinafter also called “Buyer”) and Monica Yaple having an office at 5801 Osuna Rd NE, Suite 109, Albuquerque,
New Mexico 87109-2587 (hereinafter also called “Consultant”).

 

WHEREAS:

 

The Buyer desires the Consultant render expert assistance in
the field of Accounting, an area of special expertise;

 

The Consultant represents that she has expertise in the area
of work involved and that she offers such services to the general public;

 

NOW, THEREFORE, the parties enter into a Time
& Materials contract and mutually agree as follows:

 

		1.	STATEMENT OF REQUIREMENTS

 

a)     The Consultant
shall, upon request of the Buyer, render expert advice and assistance to the Buyer.

 

b)      The Consultant
agrees that he will not assign this Agreement or any services required to be performed under this Agreement to other personnel
or contractors without the written approval of the Buyer.

 

c)      During
the term of this Agreement, the Consultant will be under the technical direction of the Buyer’s Technical Representative,
Mark J. Cola, (505) 438-2576, cola@b6sigma.com. The Technical Representative is available to the Consultant for any day-to-day
clarifications as may be required.

 

d)      During
the term of this Agreement, the Consultant will be under the administrative direction of the Buyer’s Contracts Manager, Erin
M. Mathie, (505) 438-2576, emathie@sigmalabsinc.com. Agreements between the parties, which effect a change to this Agreement, shall
be binding upon the Buyer only when specifically authorized in writing by the Contracts Manager.

 

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		2.	INDEPENDENT CONTRACTOR

 

a)      The Consultant
is an independent contractor, not an employee of the Buyer, and shall not receive employee benefits from the Buyer. The Consultant
shall be responsible for, and shall upon demand by the Buyer, provide evidence of payment of all tax liabilities for federal and
state income taxes, withholding thereof and contributions pursuant to the Internal Revenue Code of 1986, formally known as the
Internal Revenue Code of 1954, Chapters 21 and 23, as amended, or any comparable state law, due with respect to payments paid to
the Consultant by the Buyer. If the Internal Revenue Service determines at a future date that the Consultant should have been classified
as an employee of the Buyer rather than an independent contractor, the Consultant shall make payment to the Buyer of any employment
taxes refunded to the Consultant by the Internal Revenue Service.

 

b)      The Consultant
certifies that he is a United States citizen. For export compliance purposes, the Consultant shall obtain approval (written or
verbal) from the Buyer prior to providing any personnel who are not U.S. Citizens.

 

c)      The Consultant
shall maintain his own office space separate and apart from that of the Buyer. On irregular occasions, and at the request of the
Buyer, the Consultant may utilize the Buyer offices.

 

d)      The Consultant
is not expected to work exclusively on the Buyer business and may maintain business relationships with other businesses independent
of his relationship with the Buyer.

 

e)      The Consultant
is responsible for his own time scheduling and work planning in order to fulfill the Statement of Work requirements. The Buyer
does not prescribe a work schedule of minimum hours of work for the Consultant.

 

f)      The Consultant
shall provide all tools, materials, and equipment necessary to conduct business with the Buyer.

 

		3.	PERIOD OF PERFORMANCE

 

The consulting services under this Agreement
shall be performed during the period beginning 01 June 2012 through 31 May 2013.

 

		4.	COSTS, FUNDING, AND MAXIMUM OBLIGATION

 

a)      Labor
Costs: The Consultant will be reimbursed for direct labor expended in performance of the work effort at the rate of $75.00
per hour. The hourly rate charged hereunder shall not exceed the hourly rate charged by the Consultant to the Consultant's most
favored customer for the same or similar quantity of labor hours and conditions of sale during the term of this Agreement. For
purposes of computation of a daily rate, a day shall be considered as eight (8) hours. For fractions of days worked or spent in
authorized travel, the daily rate will be prorated to the number of actual hours worked and/or spent in authorized travel.

 

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b)      Travel
Costs: The Consultant shall be reimbursed for actual and reasonable travel expenses authorized by the Buyer’s Technical
Representative. Unauthorized travel expenses will not be reimbursed. Airfare will be reimbursed for coach class at the most economical
coach class available and supported by receipt of payment. Lodging and Meals and Incidental Expenses (M&IE) are reimbursable
at actual cost, within the per diem limits specified by the Federal Joint Travel Regulations (JTR). Receipts must be provided for
lodging and any other expense over $25. In lieu of providing receipts for M&IE, the Consultant may request reimbursement for
actual costs incurred up to the daily per diem rate prescribed in the JTR as published at https://secureapp2.hqda.pentagon.mil/perdiem.
M&IE will be reimbursed at 75% of the JTR per diem on both the day of departure and the day of return.

 

c)      Maximum
Obligation: The Buyer's maximum obligation for payment during the term of this Agreement shall not exceed $108,675.00 inclusive
of any authorized costs incurred by the Consultant. It is understood that there is no guarantee of any minimum obligation under
this Agreement.

 

		5.	SUBMISSION OF INVOICES

 

a)      The Buyer
shall compensate the Consultant for services provided within thirty (30) days upon receipt and approval of an invoice. The Buyer
shall advise the Consultant if an invoice or any portion of an invoice is not approved by the Buyer within ten (10) days from receipt
of an invoice. Invoices shall be submitted no more frequent than monthly and include all services and reimbursable expenses under
this Agreement to the Technical Point of Contact as listed in Section A.5 of individual Task Orders.

 

b)      Invoicing
shall be in best commercial form, by Task Order, including and prominently displaying the following:

 

i)      Personal
Services Consultant Agreement number PSCA.2012.011.MYA

 

ii)      Task
Order number

 

iii)      Period
of performance of the Task Order

 

iv)      Maximum
funding of the Task Order

 

v)      Period
of service covered by the invoice

 

vi)      Current
and cumulative labor hours expended on the Task Order

 

vii)      Current
and cumulative costs invoiced for labor on the Task Order

 

viii)      Current
and cumulative costs invoiced for travel on the Task Order

 

ix)      Total
current and cumulative costs invoiced on the Task Order

 

x)      Signed
certification by the Consultant indicating that labor hours and costs claimed were necessary for performance of work required under
the Agreement and Task Order.

 

xi)      Travel
vouchers must be attached to invoices claiming travel costs.

 

c)      By acceptance
of final payment, it is understood and agreed that the Consultant will release the Buyer and its customer of any and all liabilities,
claims, and obligations whatsoever under or arising from this Agreement.

 

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		6.	AUDIT

 

The Buyer or the Government shall have the
right, upon reasonable notice, to audit the direct costs, expenses, and disbursements made or incurred in connection with the services
to be performed under this Agreement.

 

		7.	STATEMENT OF WORK

 

a)      The Consultant
shall perform the work requirements and shall furnish the services described in mutually agreed upon Task Orders in the form of
Attachment A to this Agreement.

 

b)      The Consultant
shall not perform the work requirements and shall not furnish the services described in mutually agreed upon Task Orders until
said Task Order is signed by both parties.

 

		8.	REPORTS AND MEETINGS

 

a)      The Consultant
shall submit reports as may be, from time to time, requested by the Buyer in such form and number as the Buyer requires concerning
the work results of the Consultant under this Agreement.

 

b)      During
the term of this Agreement, the Consultant shall be available for informal meetings with the Buyer to discuss work in progress
and to provide an understanding of various aspects of work performed or to be performed.

 

		9.	SECURITY

 

The Consultant hereby agrees to abide by
the security requirements as set forth in Chapter 2, Section 2 "Personnel Clearances" of the National Industrial Security
Program Operating Manual (NISPOM) [DoD 5220.22M], in the event that classified information is involved in the work.

 

		10.	EXPORT CONTROL

 

a)      The Consultant
represents and warrants that it shall comply with all U.S. export and import laws and regulations. Further, by acceptance of this
Agreement, the Consultant certifies that he is registered in accordance with the International Traffic in Arms Regulations (ITAR)
of the United States Department of State [Title 22 of the Code of Federal Regulations, Parts 120 to 130, inclusive], if required.
Any commodities, technical data, and/or services provided by the Buyer to the Consultant in connection with this Agreement (hereinafter
referred to as “Items Provided by Buyer”), as well as any commodities, technical data, and/or services developed or
produced therefrom by the Consultant (hereinafter referred to as “Items Produced by Consultant for Buyer under the terms
of this Agreement”), are subject to the requirements of the ITAR of the United States Department of State [Title 22 of the
Code of Federal Regulations, Parts 120 to 130, inclusive], the Export Administration Regulations (EAR) of the United States Department
of Commerce [Title 15 of the Code of Federal Regulations, Parts 768 to 799, inclusive], Department of Defense Directive 5230.25,
Withholding of Unclassified Technical Data from Public Disclosure, or any other applicable laws or regulations of the United States.

 

b)      The Consultant
represents and warrants that neither the Items Provided by Buyer, nor the Items Produced by Consultant for Buyer under the terms
of this Agreement, will be exported, transferred, or disclosed outside the United States or to any foreign person, as defined under
ITAR, EAR, or Department of Defense Directive 5230.25 unless any necessary United States Government export license or other authorization
has been obtained. The Consultant shall obtain the written consent of the Buyer prior to submitting any application for a license
or other authorization under ITAR, EAR and/or Department of Defense Directive 5230.25.

 

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c)      The Consultant
shall obtain the written consent of the Buyer prior to exporting, transferring, or disclosing any Items Provided by the Buyer or
Items Produced by Consultant for Buyer under the terms of this Agreement outside the United States or to any foreign person, as
defined under ITAR, EAR, or Department of Defense Directive 5230.25.

 

d)      The Consultant
shall indemnify and hold the Buyer harmless for all claims, demands, damages, costs, fines, penalties, attorneys’ fees, and
all other expenses arising from the Consultant’s failure to comply with this clause, the stated statutes and regulations,
as they may be amended.

 

		11.	PATENTS

 

a)      Assignment
to Buyer: The Consultant agrees to assign to the Buyer the entire right, title, and interest throughout the world in and to each
invention and patentable discovery and writing made or conceived in the course of performance of services under this Agreement.

 

b)      Disclosure
to Buyer: The Consultant agrees to promptly disclose to the Buyer all designs, models, photographs, drawings, writings, inventions
and other patentable discoveries which are made, conceived or first actually reduced to practice under the performance of this
Agreement and to execute such documents as required to obtain patent or other legal protection and to convey assignment of rights,
title and interest to same to the Buyer in accordance with paragraph a) above.

 

		12.	RIGHTS IN DATA

 

The Buyer shall have the right to, and unlimited
rights in, technical data including computer software, first produced or used in the performance of this Agreement.

 

		13.	LIAISON AND COMMUNICATIONS

 

The Buyer alone shall be responsible for
all liaison and communications with its customers and its other subcontractors and consultants for the term of this Agreement.
The Consultant shall not communicate with the Buyer's customers or the Buyer's other subcontractors or consultants for any reason
whatsoever regarding this Agreement or matters relating to the Buyer's prime contract without the permission of the Buyer's Technical
Representative.

 

		14.	INSURANCE

 

The Consultant represents that it now carries,
and agrees it will continue to carry during the term of this Agreement, at the Consultant’s expense, as a minimum, General
Liability Insurance, Worker’s Compensation and Employers’ Liability Insurance, Professional Liability Insurance, and
Property Insurance, in such amount as will protect the Consultant and the Buyer from risks or claims associated with the Consultant
fulfilling the requirements of services under this Agreement. The Consultant shall provide written notification to the Buyer at
least thirty (30) days in advance of any modification, change, or cancellation of insurance coverage. Any such notification by
an insurance agent or other insurance company representative shall be in addition to, and shall not satisfy, the Consultant’s
obligation to provide written notification.

 

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		15.	INDEMNIFICATION

 

The Consultant shall indemnify, defend,
and hold harmless the Buyer from and against all claims and actions, and all expenses incidental to such claims or actions, based
upon or arising out of damage to property or injuries to persons or other tortuous acts caused or contributed to by the Consultant
or anyone acting under its direction or control or in its behalf in the course of its performance under this Agreement, except
to the extent such damage or injury is caused by the sole negligence of willful misconduct of the Buyer.

 

		16.	TERMINATION

 

The Buyer shall have the right to terminate
this Agreement in whole or in part for its convenience at any time during the course of performance by written or telegraphic notice.
Upon receipt of any termination notice, the Consultant shall immediately discontinue services on the date and to the extent specified
in the notice.

 

		17.	GOVERNING LAW

 

This Agreement shall be construed in accordance
with, and be governed by, the laws of the State of New Mexico.

 

		18.	SUPERSEDING EFFECT

 

This Consulting Agreement constitutes the
entire Agreement between the parties and supersedes any and all prior conditions, commitments and agreements between the parties,
either oral or written.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

 

	B6 Sigma, Inc.	 	Monica Yaple
	 	 	 	 
	By	/s/
    Erin M. Mathie	 	By	/s/
     Monica Yaple
	 	 	 	 	 
	Name	Erin M. Mathie	 	Name	Monica
    Yaple
	 	 	 	 	 
	Title	Contracts Manager	 	Title	

	 	 	 	 	 
	Date	 	 	Date	 
	 	 	 	 	 
	Voice	(505) 438-2576	 	Voice	 
	 	 	 	 	 
	Email	emathie@sigmalabsinc.com	 	Email	 
	 	 	 	 	 
	 	 	 	Tax ID	 

 

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	ATTACHMENT A		ATTACHMENT A

 

PERSONAL SERVICES CONSULTING AGREEMENT

PSCA.2011.___.___

__________

 

TASK ORDER __________

__________

 

		A.1	STATEMENT OF WORK

 

__________

 

		A.2	PERIOD OF PERFORMANCE

 

__________

 

		A.3	DELIVERABLES

 

__________

 

		A.4	TASK ORDER FUNDING

 

__________

 

		A.5	POINTS OF CONTACT

 

	Technical:	Contractual:
	__________	__________
	__________	__________
	__________	__________

 

Executed by the parties hereto on the date shown below:

 

	B6 Sigma, Inc.	__________
	 	 	 	 	 
	By	 	 	By	 
	 	 	 	 	 
	Name	 	 	Name	 
	 	 	 	 	 
	Title	 	 	Title	 
	 	 	 	 	 
	Date	 	 	Date	 
	 	 	 	 	 
	Voice	 	 	Voice	 
	 	 	 	 	 
	Email	 	 	Email	 
	 	 	 	 	 
	 	 	 	Tax ID	 

 

    	Page 7
                                                                                                                                                                                               of 7

    	 

    

 

 

 

PERSONAL SERVICES CONSULTING AGREEMENT

PSCA.2012.011.MYA

01 June 2012

 

TASK ORDER 0001

01 June 2012

 

		A.1	STATEMENT OF WORK

 

Provide Accounting Services consistent with
requirements for publicly traded company. Prepare monthly and quarterly financial statements for management, SEC filings, auditors;
and, monthly or quarterly review of books (balance sheet, income statement, cash flows, etc); monthly bank reconciliations; record
journal entries; payroll for B6 & Sumner including payroll taxes/filings/reports; assist with preparation of quarterly and
yearly SEC filings; prepare annual tax returns; B6 Sigma liaison with DCAA.

 

		A.2	PERIOD OF PERFORMANCE

 

01 June 2012 through 31 May 2013

 

		A.3	DELIVERABLES

 

See Statement of Work

 

		A.4	TASK ORDER FUNDING

 

	Labor	 	90,000.00	 	(1200 hours)
	NMGRT	 	6,300.00	 	(on labor)
	Travel	 	12,375.00	 	(POV mileage)
	Total	 	$108,675.00	 	 

 

    	Page 1 of 2

    	 

    

 

		A.5	POINTS OF CONTACT

 

	Technical:	 	Contractual:
	Mark J. Cola	 	Erin M. Mathie
	(505) 438-2576	 	(505) 438-2576
	cola@b6sigma.com	 	emathie@sigmalabsinc.com

 

Executed by the parties hereto on the date shown below:

 

	B6 Sigma, Inc.	 	Monica Yaple
	 	 	 	 	 
	By	 /s/
    Erin M. Mathie	 	By	/s/
     Monica Yaple
	 	 	 	 	 
	Name	Erin M. Mathie	 	Name	Monica
    Yaple
	 	 	 	 	 
	Title	Contracts Manager	 	Title	

	 	 	 	 	 
	Date	 	 	Date	 
	 	 	 	 	 
	Voice	(505) 438-2576	 	Voice	 
	 	 	 	 	 
	Email	emathie@sigmalabsinc.com	 	Email	 
	 	 	 	 	 
	 	 	 	Tax ID	 

 

    	Page 2 of 2

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