Document:

Exhibit
10.42

 

NON-EXECUTIVE
DIRECTOR AGREEMENT

 

THIS
NON-EXECUTIVE DIRECTOR AGREEMENT (this “Agreement”) is made, entered into and effective as of the 10 day of December
2019 (the “Effective Date”), between Generation Alpha, Inc., a Nevada corporation (the “Corporation”),
and Raymond Davison (the “Director”).

 

WHEREAS,
the Corporation has requested that the Director join its board of directors (the “Board”)

 

WHEREAS,
in order to induce the Director to join the Board, the Corporation has, with the approval of the Board as permitted by §78.070(8)
of the Nevada Revised Statutes (“NRS”), agreed to the terms herein; and

 

WHEREAS,
the Corporation and the Director wish to memorialize the terms and conditions of the Director’s service as an independent
director on the Board.

 

NOW,
THEREFORE, for and in consideration of the covenants and promises contained herein, the Corporation and the Director agree as
follows:

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:

 

1.
Position. Subject to the terms and provisions of this Agreement, the Director hereby agrees to serve as a member of the
Board, provided, however, that the Director’s continued service on the Board shall be subject to any necessary
approval by the Corporation’s stockholders as required by applicable law and the Corporation’s governing documents.

 

2.
Duties.

 

a)
During the Directorship Term (as defined herein), the Director shall make reasonable business efforts to attend all Board meetings
in person or via conference call, Board and management conference calls as appropriate, serve on appropriate committees as reasonably
requested and agreed upon by the Board, make himself available to the Corporation at mutually convenient times and places, attend
external meetings and presentations when agreed on in advance, as appropriate and convenient, and perform such duties, services
and responsibilities, and have the authority commensurate to such position.

 

b)
The Director will use his best efforts to promote the interests of the Corporation and comply with his or her fiduciary duty obligations
as imposed by Nevada law. The Corporation recognizes that the Director (i) is or may become a full-time executive employee of
another entity and that his or her responsibilities to such entity must have priority and (ii) sits or may sit on the board of
directors of other entities. Notwithstanding the same, the Director will provide the Corporation with prior written notice of
any future commitments to such entities and use reasonable business efforts to coordinate his or her respective commitments so
as to fulfill his obligations to the Corporation and, in any event, will fulfill his or her legal obligations as a Director.

 

c)
The Director will at all times act as a fiduciary in the service and best interests of the Corporation. In addition, the Director
agrees to provide all information regarding himself as the Corporation requires to satisfy its disclosure obligations under applicable
securities laws.

 

3.
Compensation.

 

a)
Stock. The Director shall receive 166,667 shares of the Corporations’ common stock upon his appointment to the Board
and shall be entitled to receive equity compensation of $5,000 of stock grants on a quarterly basis as well as $1,250 per board
meeting attended in person or $625 if attended by telephone as determined by the Board or a designated committee in its absolute
discretion and upon the terms and conditions set forth in the award agreement and, if applicable, the governing plan. Notwithstanding
the foregoing, if the Director ceases to be a member of Board at any time during the vesting period for any reason (such as resignation,
withdrawal, death, disability or any other reason), then any unvested shares shall be irrefutably forfeited. Furthermore, the
Director agrees that all shares of the Corporation’s stock held by the Director shall be subject to any “lock up”
agreement required to be signed by the Corporation’s officers in connection with any financing.

 

    	 	 	 

    	 

    

 

b)
Independent Contractor. The Director’s status during the Directorship Term shall be that of an independent contractor
and not, for any purpose, that of an employee or agent with authority to bind the Corporation in any respect. All payments and
other consideration made or provided to the Director under this Section 3 shall be made or provided without withholding or deduction
of any kind, and the Director shall assume sole responsibility for discharging all tax or other obligations associated therewith.

 

c)
Expense Reimbursements. During the Directorship Term, the Corporation shall reimburse the Director for all reasonable out-of-pocket
expenses incurred by the Director in attending any in-person meetings, provided that the Director complies with the generally
applicable policies, practices and procedures of the Corporation for submission of expense reports, receipts or similar documentation
of such expenses.

 

4.
Directorship Term. The “Directorship Term,” as used in this Agreement, shall mean the period from the commencement
of your appointment as a Director of the Corporation and terminating on the earliest of the following to occur (subject to compliance
with applicable laws): (a) the death of the Director; (b) the termination of the Director from his membership on the Board by
the mutual agreement of the Corporation and the Director; (c) the removal of the Director from the Board by the vote of the stockholders
of the Corporation in accordance with applicable law and the terms of the Corporation’s governing documents, (d) the failure
of the stockholders to re-elect the Director; (e) the resignation by the Director from the Board; or (f) upon the Director becoming
prohibited by law from acting as director.

 

5.
Renouncement of Corporate Opportunities.

 

a)
Except as otherwise expressly provided in this Agreement, upon appointment of the Director to the Board, (i) the Director may
engage or invest in, independently or with, for the account of or as an advisor to others, any business activity of any type or
description, including without limitation those that might be the same as or similar to the Corporation’s business, (ii)
the Corporation shall not have any right in or to such business activities or ventures or to receive or share in any income or
proceeds derived therefrom and (iii) the Corporation shall have no interest or expectancy, and hereby specifically renounces any
interest or expectancy, in any such business activities or ventures.

 

b)
Without limiting the generality of Section 5(a), if the Director acquires knowledge of a potential transaction or matter which
may be a Corporate Opportunity, as defined in Section 5(c), or otherwise is then, directly or with others, exploiting any Corporate
Opportunity, subject to Section 6, the Corporation shall have no interest in such Corporate Opportunity and no expectancy that
such Corporate Opportunity be offered to the Corporation, any such interest or expectancy being hereby renounced, so that, as
a result of such renunciation, and for the avoidance of doubt and to the fullest extent permitted by law, the Director (i) shall
have no duty to communicate or present such Corporate Opportunity to the Corporation, (ii) shall have the right to hold any such
Corporate Opportunity for his own account or to recommend, sell, assign or transfer such Corporate Opportunity to Persons other
than the Corporation and (iii) shall not breach any fiduciary duty to the Corporation, in the Director’s capacity as a director
of the Corporation, by reason of the fact that the Director pursues or acquires such Corporate Opportunity for himself, directs,
sells, assigns or transfers such Corporate Opportunity to another Person, or does not communicate information regarding such Corporate
Opportunity to the Corporation.

 

c)
“Corporate Opportunity” shall mean an actual or potential investment or business opportunity or prospective
economic advantage in which the Corporation could, but for the provisions of this Agreement, have an interest or expectancy, including,
without limitation, acquisitions, dispositions, business combinations, financing or investing opportunities or other transactions.

 

    	 	2	 

    	 

    

 

6.
Protected Opportunities. Notwithstanding Section 5 hereof, the Corporation does not renounce any interests or expectancy
it may have in any Corporate Opportunity (i) that is offered to the Director if such opportunity is expressly offered to the Director
in his capacity as a director of the Corporation or (ii) that has been identified or developed using any resources or confidential
information of the Corporation or any of its direct or indirect subsidiaries. Nothing in this Agreement shall be construed to
(1) limit the duty that the Director owes the Corporation under applicable law (i) to refrain from improperly disclosing confidential
information of the Corporation to third parties without the Corporation’s consent and (ii) to refrain from improperly exploiting
confidential information of the Corporation or (2) limit the ability of the Corporation or any of its direct or indirect subsidiaries
to compete with the Director, any of his affiliates or clients or any other person or entity to obtain, develop or otherwise exploit
a Corporate Opportunity or other investment, business opportunity or venture.

 

7.
Board Approval. The Corporation hereby represents and warrants to the Director that the execution and delivery of this
Agreement by the Corporation has been duly authorized and approved by the Board (or an authorized committee thereof) in accordance
with the NRS. During the Director’s service on the Board, he will be entitled to the same rights (including, without limitation,
rights of indemnification and advancement of expenses provided by contract, charter or bylaws) that are common to all other non-employee
members of the Board, as those rights may be altered or amended from time to time so long as such alteration or amendment applies
to all non-employee members of the Board.

 

8.
Director’s Representation and Acknowledgment. The Director represents to the Corporation that his execution and performance
of this Agreement shall not be in violation of any agreement or obligation (whether or not written) that he or she may have with
or to any person or entity, including without limitation, any prior or current employer. The Director hereby acknowledges and
agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely of the Corporation,
and the Director shall have no recourse whatsoever against any employee or stockholder of the Corporation or any of their respective
affiliates with regard to this Agreement.

 

9.
Director Covenants.

 

a)
Unauthorized Disclosure. The Director agrees and understands that in the Director’s position with the Corporation,
the Director will have has been and will be exposed to and receive information relating to the confidential affairs of the Corporation,
including, but not limited to, technical information, business and marketing plans, strategies, customer information, other information
concerning the Corporation’s products, promotions, development, financing, expansion plans, business policies and practices,
and other forms of information considered by the Corporation to be confidential and in the nature of trade secrets. The Director
agrees that during the Directorship Term and thereafter, the Director will keep such information confidential and will not disclose
such information, either directly or indirectly, to any third person or entity without the prior written consent of the Corporation,
or use such information for his or her own benefit or for the benefit of any third person; provided, however, that
the Director may, after giving prior notice to the Corporation to the extent practicable under the circumstances, disclose such
information to the extent required by applicable laws or governmental regulations or judicial or regulatory process. Upon termination
of the Directorship Term, the Director will promptly return to the Corporation and/or destroy at the Corporation’s direction
all property, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, technical data, other product
or document, and any summary or compilation of the foregoing, in whatever form, including, without limitation, in electronic form,
which has been produced by, received by or otherwise submitted to the Director in the course or otherwise as a result of the Director’s
position with the Corporation during or prior to the Directorship Term.

 

b)
Insider Trading Guidelines. Director agrees to execute and comply at all times with the Corporation’s Insider Trading
Guidelines as well as any other policies adopted by the Corporation that are applicable to directors.

 

c)
Remedies. The Director agrees that any breach of the terms of Sections 6 or 8 would result in irreparable injury and damage
to the Corporation for which the Corporation would have no adequate remedy at law; the Director therefore also agrees that in
the event of said breach or any threat of breach, the Corporation shall be entitled to an immediate injunction and restraining
order to prevent such breach and/or threatened breach and/or continued breach by the Director and/or any and all entities acting
for and/or with the Director, without having to prove damages or paying a bond, in addition to any other remedies to which the
Corporation may be entitled at law or in equity. The terms of this paragraph shall not prevent the Corporation from pursuing any
other available remedies for any breach or threatened breach hereof, including, but not limited to, the recovery of damages from
the Director.

 

    	 	3	 

    	 

    

 

d)
Survival. The provisions of this Section 9 shall survive any termination of the Directorship Term, and the existence of
any claim or cause of action by the Director against the Corporation, whether predicated on this Agreement or otherwise, shall
not constitute a defense to the enforcement by the Corporation of the covenants and agreements of this Section 9.

 

10.
Indemnification. The Corporation agrees to indemnify the Director for his or her activities as a member of the Board to
the fullest extent permitted under applicable law and its governing documents. The Director agrees to enter into the Corporation’s
standard indemnification agreement.

 

11.
Non-Waiver of Rights. The failure to enforce at any time the provisions of this Agreement or to require at any time performance
by the other party hereto of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to
affect either the validity of this Agreement or any part hereof, or the right of either party hereto to enforce each and every
provision in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision
of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time
or at any prior or subsequent time.

 

12.
Notices. Every notice relating to this Agreement shall be in writing and shall be given by personal delivery or by registered
or certified mail, postage prepaid, return receipt requested; to:

 

If
to the Company:

 

Generation
Alpha, Inc.

853
Sandhill Avenue

Carson,
California 90746

Attn:
Tiffany Davis, Chief Executive Officer

Email:
tiffany@genalphainc.com

 

With
a copy to (which shall not constitute notice):

 

Sichenzia
Ross Ference LLP

1185
Avenue of the Americas, 37th Floor

New
York, NY 10036

Attn:
Marc J. Ross, Esq.

Email:
mross@srf.law

 

If
to the Director:

 

Name:
Raymond Davison

Address:

Email:
rdavison@timios.com

 

Either
of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party
pursuant to this Section 12.

 

13.
Binding Effect/Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger) and
assigns. Notwithstanding the provisions of the immediately preceding sentence, the Director shall not assign all or any portion
of this Agreement without the prior written consent of the Corporation.

 

14.
Entire Agreement. This Agreement (together with the other agreements referred to herein) sets forth the entire understanding
of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between
them as to such subject matter.

 

15.
Severability. If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole
or in part, such provision or application shall to that extent be severable and shall not affect other provisions or applications
of this Agreement.

 

    	 	4	 

    	 

    

 

16.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without
reference to the principles of conflict of laws. The Nevada courts have non-exclusive jurisdiction to settle any dispute and the
parties submit to the non-exclusive jurisdiction of the Nevada courts; provided, however, that neither party shall
commence any such action or proceeding unless prior thereto the parties have in good faith attempted to resolve the claim, dispute
or cause of action which is the subject of such action or proceeding through mediation by an independent third party.

 

17.
Legal Fees. The parties hereto agree that the non-prevailing party in any dispute, claim, action or proceeding between
the parties hereto arising out of or relating to the terms and conditions of this Agreement or any provision thereof (a “Dispute”),
shall reimburse the prevailing party for reasonable attorney’s fees and expenses incurred by the prevailing party in connection
with such Dispute; provided, however, that the Director shall only be required to reimburse the Corporation for
its fees and expenses incurred in connection with a Dispute if the Director’s position in such Dispute was found by the
court, arbitrator or other person or entity presiding over such Dispute to be frivolous or advanced not in good faith.

 

18.
Modifications. Neither this Agreement nor any provision hereof may be modified, altered, amended or waived except by an
instrument in writing duly signed by the party to be charged.

 

19.
Tense and Headings. Whenever any words used herein are in the singular form, they shall be construed as though they were
also used in the plural form in all cases where they would so apply. The headings contained herein are solely for the purposes
of reference, are not part of this Agreement and shall not in any way affect the meaning or interpretation of this Agreement.

 

20.
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original
but all of which together shall constitute one and the same instrument.

 

[signature
page follows]

 

    	 	5	 

    	 

    

 

IN
WITNESS WHEREOF, the Corporation has caused this Non-Executive Director Agreement to be executed by authority of its Board of
Directors, and the Director has hereunto set his hand, on the day and year first above written

 

	GENERATION ALPHA, INC.	 
	 	 
	/s/ TIFFANY DAVIS	 
	Tiffany Davis	 
	Chief Executive Officer	 
	 	 
	/s/ GEORGE O’LEARY	 
	George O’Leary	 
	Chairman	 
	 	 
	DIRECTOR	 
	 	 
	/s/
    RAYMOND DAVISON	 
	Raymond Davison	 

 

    	 	6Exhibit

Exhibit 4.6 

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following is a description of the capital stock of Lonestar Resources US Inc. (the "Company," "we," "us," and "our"), which is registered under Section 12 of the Securities Exchange Act of 1934, as amended. The following description is not complete and is qualified in its entirety by reference to our Certificate of Incorporation, Certificate of Amendment to the Certificate of Incorporation, Certificate of Amendment to Certificate of Incorporation dated May 24, 2017 (collectively, and as further amended by our Certificates of Designations, "our certificate of incorporation"), our Amended and Restated Bylaws ("our bylaws"), our Certificate of Designations of Series B Convertible Preferred Stock, Certificate of Designations of Series A-1 Convertible Participating Preferred Stock ("Series A-1 Preferred Stock"), and Certificate of Designations of Series A-2 Convertible Participating Preferred Stock ("Series A-2 Preferred Stock"), which are included as exhibits 3.1, 3.2, 3.3, 3.4, 3.5, 3.6 and 3.7, respectively, to our Annual Report on Form 10-K.

Authorized Capital Stock

Our authorized capital stock consists of 100,000,000 shares of Class A voting common stock ("Class A Common Stock"), par value $0.001 per share, 5,000 shares of Class B non-voting common stock ("Class B Non-Voting Common Stock"), par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share.

Common Stock

Holders of our Class A Common Stock are entitled to one vote for each share on all matters voted on by stockholders, including the election of directors. Except as required by law, the holders of our Class B Non-Voting Common Stock will not be entitled to vote on matters voted on by stockholders. Shares of our Class A Common Stock do not have cumulative voting rights, which means that the holders of more than 50% of the shares voting for the election of the board of directors can elect all the directors to be elected at that time, and, in such event, the holders of the remaining shares will be unable to elect any directors to be elected at that time. Holders of shares of our Class A Common Stock and Class B Non-Voting Common Stock (collectively, "Common Stock") do not have any conversion, redemption or pre-emptive rights.

Subject to any preferential or other rights of any then outstanding Preferred Stock, in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of shares of our Common Stock will be entitled to receive all of the remaining assets of the Company available for distribution to its stockholders, ratably in proportion to the number of shares of Common Stock held by them, regardless of whether such shares are Class A Common Stock or Class B Non-Voting Common Stock.

Holders of record of shares of our Common Stock are entitled to receive dividends when and if declared by the board of directors out of funds legally available for such dividends, however, that any dividend upon the Common Stock that is payable in Common Stock shall be paid only in Class A Common Stock to the holders of Class A Common Stock and only in Class B Non-Voting Common Stock to the holders of Class B Non-Voting Common Stock, subject to both the rights of all outstanding shares of capital stock ranking senior to the Common Stock in respect of dividends, including Series A-1 Preferred Stock and Series A-2 Preferred Stock, and to any dividend restrictions contained in debt agreements. Any outstanding shares of Common Stock  are fully paid and nonassessable by us. As of December 31, 21019, there were 24,945,594 shares of our Class A Common Stock outstanding. We do not have any shares of Class B Non-Voting Common Stock outstanding.

Preferred Stock

Our board of directors is authorized to issue up to 10,000,000 shares of preferred stock in one or more series, including but not limited to our Series A-1 Preferred Stock and our Series A-2 Preferred Stock. For each series of preferred stock, the board of directors may fix the voting powers, full or limited, or no voting powers, and such designations, preferences and relative participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including without limitation thereof, dividend rights, conversion rights, redemption privileges and liquidation preferences and the number of shares constituting any series or the designation of that series, which may be superior to those of the Common Stock, without further vote or action by the stockholders.  We do not need stockholder approval to issue or fix the terms of the preferred stock. Subject to the rights of the holders of any series of preferred stock pursuant to the terms of this certificate of incorporation or any resolution or resolutions providing for the issuance of such series of stock adopted by the Board of Directors, the number of authorized shares of preferred stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote. 

One of the effects of undesignated preferred stock may be to enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a tender offer, proxy contest, merger or otherwise, and as a result to protect the continuity of our management. The issuance of shares of the preferred stock by the board of directors as described above may adversely affect the rights of the holders of our Common Stock. For example, preferred stock issued by us may rank superior to the Common Stock as to dividend rights, liquidation preference or both, may have full or limited voting rights and may be convertible into shares of Common Stock. Accordingly, the issuance of shares of preferred stock may discourage bids for our Common Stock or may otherwise adversely affect the market price of our Common Stock.

Series A-1 Preferred Stock. As of December 31, 2020, there were 100,328 shares of Series A-1 Preferred Stock outstanding. At a stockholder’s meeting on November 3, 2017, holders of a majority of our outstanding common stock approved the issuance of our Class A Common Stock upon the conversion of all shares of Series A-1 Preferred Stock issued or issuable pursuant to the Amended and Restated Securities Purchase Agreement, dated as of June 15, 2017, by and between the Company and Chambers Energy Capital III, LP. Holders of Series A-1 Preferred Stock may convert such shares into shares of our Class A Common Stock at their option. The Series A-1 Preferred Stock votes on an as converted basis on all matters submitted to a vote of our common stock and, separately, votes as a class with respect to certain matters that could potentially affect the Series A-1 Preferred Stock.

Series A-2 Preferred Stock. We do not have any shares of Series A-2 Preferred Stock outstanding.

Anti-takeover Effects of Provisions of Delaware Law and Our Certificate of Incorporation and Bylaws

Certain provisions of our certificate of incorporation and bylaws may be considered as having an anti-takeover effect, such as the following provisions:

		
	•
	requiring advance notice of stockholder intention to put forth director nominees or bring up other business at a stockholders’ meeting;

		
	•
	requiring the affirmative vote of 66 2⁄3% of the voting power of all then outstanding shares entitled to vote in order for stockholders to adopt, amend or repeal any provision of our bylaws or certificate of incorporation; and

		
	•
	providing that the number of directors shall be fixed from time to time by our board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors (whether or not there exist any vacancies in previously authorized directorships) or by the stockholders. Newly created directorships resulting from any increase in our authorized number of directors will be filled only by a majority vote of our board of directors then in office, whether or not such directors number less than a quorum, and directors so chosen will serve for a term expiring at the annual meeting of stockholders at which the term of office to which they have been elected expires or until such director’s successor shall have been duly elected and qualified.

The above-summarized provisions of  our certificate of incorporation and bylaws could make it more difficult to acquire us by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors. These provisions are expected to discourage certain types of coercive takeover practices and takeover bids that our board of directors may consider inadequate and to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection of our ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging takeover or acquisition proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.

Choice of Forum

Our bylaws provide that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders; (iii) any action asserting a claim against us arising pursuant to any provision of the DGCL or our certificate of incorporation or bylaws; or (iv) any action asserting a claim against us pertaining to internal affairs of our corporation; provided, however, that, in the event that the Court of Chancery of the State of Delaware lacks jurisdiction over any such action or proceeding, the sole and exclusive forum for such action or proceeding shall be another state or federal court located within the State of Delaware. Our certificate of incorporation also provides that any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of and to have consented to this choice of forum provision. It is possible that a court of law could rule that the choice of forum provision contained in our bylaws is inapplicable or unenforceable if it is challenged in a proceeding or otherwise.

Listing

Our Class A Common Stock is listed on the Nasdaq Global Select Market under the symbol "LONE."

Transfer Agent and Registrar

Computershare Trust Company, N.A. is the transfer agent and registrar for our Class A Common Stock.

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