Document:

BG
Staffing, Inc.

2013
Long-Term Incentive Plan

 

Form
of Nonqualified Stock Option Agreement

 

This Nonqualified Stock
Option Agreement (this “Agreement”) is made and entered into as of the Grant Date below by and between BG Staffing,
Inc., a Delaware corporation (the “Company”) and _______________ (the “Participant”).

 

Grant Date: 

 

Exercise Price per Share:

 

Number of Option Shares:

 

Expiration Date: 

 

1.                 
Grant of Option

 

1.1             
Grant; Type of Option. The Company hereby grants to the Participant an option (the “Option”) to
purchase the total number of shares of Common Stock of the Company equal to the number of Option Shares set forth above, at the
Exercise Price set forth above. The Option is being granted pursuant to the terms of the Company’s 2013 Long-Term Incentive
Plan (the “Plan”). The Option is not intended to be an Incentive Stock Option within the meaning of Section
422 of the Code.

 

1.2             
Consideration; Subject to Plan. The grant of the Option is made in consideration of the services to be rendered by
the Participant to the Company and is subject to the terms and conditions of the Plan. Capitalized terms used but not defined herein
will have the meaning ascribed to them in the Plan.

 

2.                 
Exercise Period; Vesting

 

2.1             
Vesting Schedule. The Option will become vested and exercisable with respect to according to the following schedule.
The unvested portion of the Option will not be exercisable on or after the Participant’s termination of Continuous Service.

 

	Vesting Date	Percentage of Original Grant Vesting on Vesting Date	Cumulative Percentage of Original Grant Vested
	 	20%	20%
	 	20%	40%
	 	20%	60%
	 	20%	80%
	 	20%	100%

 

2.2             
Expiration. The Option will expire on the Expiration Date set forth above, or earlier as provided in this Agreement
or the Plan.

 

    	 

    	 

    

 

Nonqualified Stock
Option Agreement for [NAME]

Grant Date:

 

3.                 
Termination of Continuous Service

 

3.1             
Termination for Reasons Other Than Cause, Death, Disability. If the Participant’s Continuous Service is terminated
for any reason other than Cause, death or Disability, the Participant may exercise the vested portion of the Option, but only within
the period of time ending on the earlier of: (a) the date three months following the termination of the Participant’s Continuous
Service or (b) the Expiration Date.

 

3.2             
Termination for Cause. If the Participant’s Continuous Service is terminated for Cause, the Option (whether
vested or unvested) will immediately terminate and cease to be exercisable.

 

3.3             
Termination Due to Disability. If the Participant’s Continuous Service terminates as a result of the Participant’s
Disability, the Participant may exercise the vested portion of the Option, but only within the period of time ending on the earlier
of: (a) the date 12 months following the Participant’s termination of Continuous Service or (b) the Expiration Date.

 

3.4             
Termination Due to Death. If the Participant’s Continuous Service terminates as a result of the Participant’s
death, the vested portion of the Option may be exercised by the Participant’s estate, by a person who acquired the right
to exercise the Option by bequest or inheritance, or by the person designated to exercise the Option upon the Participant’s
death, but only within the time period ending on the earlier of: (a) the date 12 months following the Participant’s termination
of Continuous Service or (b) the Expiration Date.

 

4.     
Manner of Exercise

 

4.1             
Election to Exercise. To exercise the Option, the Participant (or the Participant’s executor, administrator,
heir or legatee, as the case may be) must deliver to the Company a notice of intent to exercise in the manner designated by the
Committee. If someone other than the Participant exercises the Option, that person must submit documentation reasonably acceptable
to the Committee verifying that the person has the legal right to exercise the Option.

 

4.2             
Payment of Exercise Price. The entire Exercise Price of the Option will be payable in full at the time of exercise
to the extent permitted by applicable statutes and regulations, either:

 

(a)      
in cash or by certified or bank check at the time the Option is exercised;

 

(b)      
by delivery to the Company of other shares of Common Stock, duly endorsed for transfer to the Company, with a Fair Market
Value on the date of delivery equal to the Exercise Price (or portion thereof) due for the number of shares being acquired, or
by means of attestation whereby the Participant identifies for delivery specific shares that have a Fair Market Value on the date
of attestation equal to the Exercise Price (or portion thereof) and receives a number of shares equal to the difference between
the number of shares thereby purchased and the number of identified attestation shares (a “Stock for Stock Exchange”);

 

(c)      
through a “cashless exercise program” established with a broker;

 

(d)      
by reduction in the number of shares otherwise deliverable upon exercise of the Option with a Fair Market Value equal to
the aggregate Exercise Price at the time of exercise;

 

(e)      
by any combination of the foregoing methods; or

 

    	2

    	 

    

 

Nonqualified Stock
Option Agreement for [NAME]

Grant Date:

 

(f)       
in any other form of legal consideration that may be acceptable to the Committee.

 

4.3             
Withholding. The Participant must make arrangements satisfactory to the Company to pay or provide for any applicable
federal, state and local withholding obligations of the Company. The Participant may satisfy any federal, state or local tax withholding
obligation relating to the exercise of the Option by any of the following means:

 

(a)      
tendering a cash payment;

 

(b)      
authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant
as a result of the exercise of the Option; provided, however, that no shares of Common Stock are withheld with a value exceeding
the minimum amount of tax required to be withheld by law; or

 

(c)      
delivering to the Company previously owned and unencumbered shares of Common Stock.

 

The Company has the
right to withhold from any compensation paid to a Participant.

 

4.4             
Issuance of Shares. Provided that the exercise notice and payment are in form and substance satisfactory to the Company,
the Company will issue the shares of Common Stock registered in the name of the Participant, the Participant’s authorized
assignee, or the Participant’s legal representative that will be evidenced by stock certificates representing the shares
with the appropriate legends affixed thereto, appropriate entry on the books of the Company or of a duly authorized transfer agent,
or other appropriate means as determined by the Company.

 

5.                 
No Right to Continued Service; No Rights as Shareholder. Neither the Plan nor this Agreement confer
upon the Participant any right to be retained in any position as an Employee or Director of the Company. Further, nothing in the
Plan or this Agreement may be construed to limit the discretion of the Company to terminate the Participant’s Continuous
Service at any time, with or without Cause. The Participant will not have any rights as a shareholder with respect to any shares
of Common Stock subject to the Option unless and until certificates representing the shares have been issued by the Company to
the holder of the shares, or the shares have otherwise been recorded on the books of the Company or of a duly authorized transfer
agent as owned by the holder.

 

6.                 
Transferability. The Option is not transferable by the Participant other than to a designated beneficiary
upon the Participant’s death or by will or the laws of descent and distribution, and is exercisable during the Participant’s
lifetime only by the Participant. No assignment or transfer of the Option, or the rights represented thereby, whether voluntary
or involuntary, by operation of law or otherwise (except to a designated beneficiary, upon death, by will or the laws of descent
or distribution) will vest in the assignee or transferee any interest or right whatsoever, but immediately upon the assignment
or transfer the Option will terminate and become of no further effect.

 

7.                 
Change in Control.

 

7.1             
Acceleration of Vesting. In the event of a Change in Control, notwithstanding any provision of the Plan or this Agreement
to the contrary, the Option will become immediately vested and exercisable with respect to 100% of the shares subject to the Option.
To the extent practicable, acceleration of vesting and exercisability will occur in a manner and at a time that allows the Participant
the ability to participate in the Change in Control with respect to the shares of Common Stock received.

 

    	3

    	 

    

 

Nonqualified Stock
Option Agreement for [NAME]

Grant Date:

 

7.2             
Cash-out. In the event of a Change in Control, the Committee may, in its discretion and upon at least ten days’
advance notice to the Participant, cancel the Option and pay to the Participant the value of the Option based upon the price per
share of Common Stock received or to be received by other stockholders of the Company in the event. Notwithstanding the foregoing,
if at the time of a Change in Control the Exercise Price of the Option equals or exceeds the price paid for a share of Common Stock
in connection with the Change in Control, the Committee may cancel the Option without the payment of consideration.

 

8.                 
Adjustments. The shares of Common Stock subject to the Option may be adjusted or terminated in any
manner as contemplated by the Plan.

 

9.                 
Tax Liability and Withholding. Notwithstanding any action the Company takes with respect to any or
all income tax, Social Security tax, payroll tax, or other tax-related withholding (“Tax-Related Items”), the
ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and the Company (a) makes no
representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or exercise
of the Option or the subsequent sale of any shares acquired on exercise; and (b) does not commit to structure the Option to reduce
or eliminate the Participant’s liability for Tax-Related Items.

 

10.             
Compliance with Law. The exercise of the Option and the issuance and transfer of shares of Common Stock
will be subject to compliance by the Company and the Participant with all applicable requirements of federal and state securities
laws and with all applicable requirements of any stock exchange on which the Company’s shares of Common Stock may be listed.
No shares of Common Stock will be issued pursuant to this Option unless and until any then applicable requirements of state or
federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Participant
understands that the Company is under no obligation to register the shares with the Securities and Exchange Commission, any state
securities commission, or any stock exchange to effect such compliance.

 

11.             
Notices. Any notice required to be delivered to the Company under this Agreement must be in writing
and addressed to the Chief Financial Officer of the Company at the Company’s principal corporate offices. Any notice required
to be delivered to the Participant under this Agreement will be in writing and addressed to the Participant at the Participant’s
address as shown in the records of the Company. Either party may designate another address in writing (or by other method approved
by the Company) from time to time.

 

12.             
Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the
State of Delaware without regard to conflict of law principles.

 

13.             
Interpretation. Any dispute regarding the interpretation of this Agreement must be submitted by the
Participant or the Company to the Committee for review. The resolution of the dispute by the Committee will be final and binding
on the Participant and the Company.

 

14.             
Options Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s stockholders.
The terms and provisions of the Plan, as amended from time to time, are incorporated by reference. In the event of a conflict between
any term or provision contained in this Agreement and a term or provision of the Plan, the applicable terms and provisions of the
Plan will govern and prevail.

 

15.             
Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement
will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
set forth herein, this Agreement will be binding upon the Participant and the Participant’s beneficiaries, executors, administrators,
and the person(s) to whom this Agreement may be transferred by will or the laws of descent or distribution.

 

    	4

    	 

    

 

Nonqualified Stock
Option Agreement for [NAME]

Grant Date:

 

16.             
Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement will
not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan
and this Agreement will be severable and enforceable to the extent permitted by law.

 

17.             
Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled, or terminated
by the Company at any time, in its discretion. The grant of the Option in this Agreement does not create any contractual right
or other right to receive any Options or other Awards in the future. Future Awards, if any, will be at the sole discretion of the
Company. Any amendment, modification, or termination of the Plan will not constitute a change or impairment of the terms and conditions
of the Participant’s employment or other service with the Company.

 

18.             
Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the Option,
prospectively or retroactively; provided, that, no amendment may adversely affect the Participant’s material rights
under this Agreement without the Participant’s consent.

 

19.             
No Impact on Other Benefits. The value of the Participant’s Option is not part of the Participant’s
normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance, or similar benefit.

 

20.             
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original
but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted
by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to
preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper
document bearing an original signature.

 

21.             
Acceptance. The Participant acknowledges receipt of a copy of the Plan and this Agreement. The Participant
has read and understands the terms and provisions thereof, and accepts the Option subject to all of the terms and conditions of
the Plan and this Agreement. The Participant acknowledges that there may be adverse tax consequences upon exercise of the Option
or disposition of the underlying shares and that the Participant should consult a tax advisor prior to such exercise or disposition.

 

[Signature
Page Follows]

 

    	5

    	 

    

 

Nonqualified Stock
Option Agreement for [NAME]

Grant Date:

 

 

BG
Staffing, Inc.

 

 

 

By: ________________________________________

 

Michael
A. Rutledge, Chief Financial Officer

 

 

Participant

 

_____________________________________________

 

[NAME]

 

    	6TERM
SHEET

 

This term
sheet (“Term Sheet”), dated as of February 4, 2014 (the “Effective Date”), sets forth the principal terms
and conditions regarding a proposed asset purchase transaction (the “Proposed Transaction”) between Ubiquity Broadcasting
Corporation, Inc., a Delaware corporation (“Ubiquity”, or “Buyer”) and Stray Angel Films, a Nevada corporation
(“Stray Angel”, or “Seller”). Ubiquity and Stray Angel shall hereinafter be known individually as a “Party’
and collectively as the “Parties”.

 

The Parties
understand and agree that this Term Sheet is not binding on the Parties, except for the obligations with respect to the Exclusivity
Period and Confidentiality, which shall be binding obligations of Stray Angel in consideration of the time and expense devoted
by Ubiquity with respect to the proposed transaction. This Term Sheet is not a commitment to purchase, and is conditioned upon
the completion of inquiries and documentation satisfactory to the Buyer.

 

	Background:	Ubiquity is a leading
    provider of next generation IP based content and services for mobile, tablet and professional and lifestyle screens. With
    an extensive IP portfolio, content production resources, and software development expertise, Ubiquity is positioned to deliver
    an exciting new class of services that blends the richness of TV with the relevance of the Internet.
	 	 
	 	Stray Angel is a digital motion picture
    rental, production, and production services company founded in 2003 to serve, as a completely integrated facility with the
    ability to provide professional studio services to a wide range of clients and production needs.
	 	 
	 	The purpose of the Proposed Transaction
    is to purchase and integrate the Stray Angel business as a division or business unit within Ubiquity, leveraging the facilities,
    resources and capabilities of the two businesses to optimize and grow the overall enterprise.
	 	 
	Purchased Assets:	All assets of Stray Angel, including
    but not limited to all accounts receivable, tangible and intangible property (e.g., production facilities and equipment, office
    equipment and supplies, Intellectual property, and all other property used in connection with the Stray Angel business), books
    and records, licenses and permits, inventory, and goodwill associated with Stray Angel’s business
	 	 
	Purchase Price	Ubiquity Restricted Common Stock,
    having an aggregate value of $3,000,000, with the number of shares determined by the average per Share price at the
    date of this Agreement (the “Ubiquity Stock”).
	 	 
	Key Personnel	Key management personnel of Seller,
    including but not limited to Suren M. Seron, Howard Asher, Josh Burrows, Billy Civitella (the “Key Personnel”) shall
    enter into employment or consulting agreements with Ubiquity.
	 	 
	Business Operations	Following the Proposed Transaction,
    the Stray Angel business will be established as a division of Ubiquity, with all applicable contracts and other assets transferred
    to the new division. The Key Personnel from Stray Angel will perform day to day management of the Stray Angel studio facilities
    in Los Angeles, CA and the Ubiquity studio facilities in Irvine, CA, including studio booking, production services, scheduling,
    staff, etc.

 

    	Ubiquity Broadcasting Corporation	Page 1 of 3
January 27, 2014

    	 

    

 

	 	Ubiquity will provide
    capital for equipment purchases up to $500,000 within 6 months, as/if required to support operations of the new division (as
    determined in the sole discretion of Ubiquity management for the purposes of equipment). The initial $100,000.00 shall be
    made available after the first 30 days of the closing of this agreement if required by the company for equipment purchases.
	 	 
	Definitive Agreements 	The definitive agreements shall include
    but not be limited to an Asset Purchase Agreement, employment agreements with Key Personnel, and any other agreements as may
    be necessary to give effect to the transactions contemplated herein and/or mutually agreed between the Parties.
	 	 
	Exclusivity Period	Stray Angel agrees that it shall
    not, directly or indirectly, approach or enter into discussions/negotiations with any third party with regard to sale of the
    Stray Angel assets or any transaction similar to the Proposed Transaction contemplated in this Term Sheet for a period of
    90 days from the effective date of this Term Sheet, unless this clause is waived by Ubiquity.
	 	 
	 	Both parties acknowledge there are
    ongoing discussions with regard to the potential investment by Chuck Gold related to the proposed transaction with Ubiquity
    and certain information may be disclosed to him as approved by Ubiquity.
	 	 
	Confidentiality	Each of the signatories to this Term
Sheet agrees to keep the contents hereof confidential unless there is mutual agreement to disclose certain terms, or if the parties
are required to disclose such information as required for regulatory or other statutory purposes.
	 	 
	Fees and Expenses	Each party shall bear its own costs,
    Including legal, accounting, due diligence and other expenses relating to and arising out of the performance of its obligations
    under to this Term Sheet.
	 	 
	Effect	The terms of this Term Sheet are
    subject to legal and confirmatory due diligence, the board approval of the Ubiquity and the execution of definitive agreements
    mutually satisfactory to the parties. Ubiquity according to the SEC law will file an 8K regulatory filing accompanied by a
    press release disclosing the potential transaction to the SEC and Ubiquity’s shareholders within the 5 day legal timeframe
    to do so.
	 	 
	 	This Term Sheet shall be governed by the laws of the State of
    California.

 

    	Ubiquity Broadcasting Corporation	Page 2 of 3
January 27, 2014

    	 

    

 

Governing
Law

 

Now therefore,
the Parties hereto have executed this Term Sheet as of the Effective Date.

 

	Ubiquity Broadcasting
    Corporation, inc.	 	Stray Angel Films
	 	 	 
	/s/
    Chris Carmichael	 	/s/
    Suren M. Seron
	By: 	 	By:
	Name: Chris Carmichael	 	Name: Suren
    M. Seron
	CEO	 	CEO

 

    	Ubiquity Broadcasting Corporation	Page 3 of 3
January 27, 2014

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