Document:

EMPLOYMENT
      AGREEMENT 

     

    THIS
      EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into on May 14, 2008
      (the “Effective Date”) by and between Zulu Energy Corp., a Colorado corporation,
      with an office located at 122 N. Main Street, Sheridan, Wyoming 82801
      (“Company”) and Satyendra Deshpande, an individual with an address of 3358 Daley
      Center Drive, #1406, San Diego, CA 92123 (“Deshpande”). 

     

    WHEREAS,
      the Company desires to retain the services of Deshpande and Deshpande is willing
      to be employed by the Company. 

     

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

     

    1. Employment;
      Term.
      Deshpande is hereby employed and engaged to provide the Company with accounting
      and financial services with such titles as the Company shall specify from time
      to time, and Deshpande does hereby accept and agrees to such engagement and
      employment. Deshpande’s title at the commencement of the term shall be Chief
      Financial Officer. The term of this Agreement shall be ongoing unless terminated
      pursuant to Section 13 hereof; provided, that, the term shall not extend past
      April 30, 2011 (the “Employment Term”).

     

    2. Duties.
      Deshpande’s duties and responsibilities shall be related primarily to accounting
      and financial services as the Company shall specify from time to time. Deshpande
      shall have such authority, discretion, power and responsibility, and shall
      be
      entitled to office, secretarial and other facilities and conditions of
      employment, as are customary or appropriate to his position. Deshpande shall
      diligently and faithfully execute and perform such duties and responsibilities,
      subject to the general supervision and control of the Company’s Chief Executive
      Officer. Deshpande shall be responsible and report to the Company’s Chief
      Executive Officer, or another officer(s) designated by the Company’s Board of
      Directors. Deshpande shall devote his reasonable time, attention, energy, and
      skill to the business and affairs of the Company and as shall be necessary
      to
      satisfy the duties of a full time accounting officer of the Company.. Deshpande
      shall be permitted to engage in other business activities that do not directly
      compete with the Company only as permitted below. 

     

    Nothing
      in this Agreement shall preclude Deshpande from devoting reasonable periods
      required for: 

     

    
      	 	
              (a)

            	
              serving
                as a director or member of a committee of any organization or corporation
                involving no conflict of interest with the interests of the Company;
                

            

    

     

    
      	 	
              (b)

            	
              serving
                as a panelist in his area of expertise (in areas other than in connection
                with the business of the Company), on government or academic panels
                where
                it does not conflict with the interests of the Company; and
                

            

    

     

    
      	 	
              (c)

            	
              managing
                his personal investments, including investing in a non-competing
                business;
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    provided
      that such activities do not materially interfere with the regular performance
      of
      his duties and responsibilities under this Agreement as reasonably determined
      in
      good faith by the Company’s Chief Executive Officer. 

     

    3. Best
      Efforts of Deshpande.
      During
      his employment hereunder, Deshpande shall, subject to the direction and
      supervision of the Company’s Chief Executive Officer or another officer(s)
      designated by the Company’s Board of Directors, use his best commercially
      reasonable efforts, business judgment, skill, and knowledge to the advancement
      of the Company’s interests and to the discharge of his duties and
      responsibilities hereunder. Nothing herein shall be construed as preventing
      Deshpande from investing his assets in any business, so long as his investments
      do not conflict with the restrictions noted in Section 2. 

     

    4. Compensation
      of Deshpande.
      

     

    
      	 	
              (a)

            	
              Base
                Compensation.
                As
                compensation for the services provided by Deshpande under this Agreement,
                the Company shall pay Deshpande an annual salary of One Hundred Fifty
                Thousand Dollars ($150,000). The compensation of Deshpande under
                this
                Section shall be paid in accordance with the Company’s usual payroll
                procedures. 

            

    

     

    
      	 	
              (b)

            	
              Stock
                Options.
                Upon
                execution of this Agreement by both the Company and Deshpande, the
                Company
                shall grant Deshpande options to purchase 1,000,000 shares of the
                Company’s common stock with an exercise price equal to $1.00 per share.
                The options will vest as follows: 500,000 shares on the date of grant;
                and
                500,000 shares on January 1, 2009; provided, however, that no options
                may
                be exercised until the Company’s stockholders approve an increase in the
                Company’s authorized shares of common stock to at least 150,000,000
                shares.

            

    

     

    In
      the
      event of a conflict between the above grant and either the shareholder approved
      stock option plan or corresponding board resolution, the covenants of the
      approved plan and board resolution take precedence. 

     

    
      	 	
              (c)

            	
              Bonus.
                In
                addition to the base compensation in Section 4(a), Deshpande shall
                be
                eligible to receive an annual bonus determined by the Board of Directors
                based on the performance of the Company and Deshpande.
                

            

    

     

    5. Benefits.
      Deshpande shall also be entitled to participate in any and all Company benefit
      plans, from time to time, in effect for employees of the Company, including,
      but
      not limited to, health, dental and vision insurance plans, and 401(k) plans
      available to the Company’s senior management executives and their dependents.
      Such participation shall be subject to the terms of the applicable plan
      documents and generally applicable Company policies. 

     

    6. Vacation,
      Sick Leave and Holidays.
      Deshpande shall be entitled to four (4) weeks of paid vacation, with such
      vacation to be scheduled and taken in accordance with the Company’s standard
      vacation policies. Two (2) weeks of unused, accrued vacation can be carried
      into
      the next year. Remaining unused, accrued vacation time will be paid during
      the
      first quarter of the following year. In addition, Deshpande shall be entitled
      to
      such sick leave and holidays at full pay in accordance with the Company’s
      policies established and in effect from time to time. 

    
      
         

      

      
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    7. Business
      Expenses.
      The
      Company shall promptly reimburse Deshpande for all reasonable out-of-pocket
      business expenses incurred in performing Deshpande’s duties and responsibilities
      hereunder in accordance with the Company’s policies, provided Deshpande promptly
      furnishes to the Company adequate records of each such business expense. Such
      expenses shall be reimbursed in accordance with the Company’s regular
      reimbursement practices. 

     

    8. Location
      of Deshpande’s Activities.
      Deshpande’s principal place of business in the performance of his duties and
      obligations under this Agreement shall be San Diego, California. The company
      will bear the travel expense between San Diego, CA and any other location and
      provide Deshpande with accommodations and meal reimbursement at such other
      location. 

     

    9. Confidential
      Information/Inventions.
      

     

    
      	 	
              (a)

            	
              Confidential
                Information.
                Deshpande
                shall not, in any manner, for any reasons, either directly or indirectly,
                divulge or communicate to any person, firm or corporation, any
                confidential information concerning any matters not generally known
                or
                otherwise made public by Company which affects or relates to the
                Company’s
                business, finances, marketing and/or operations, research, development,
                inventions, products, designs, plans, procedures, or other data
                (collectively, “Confidential Information”) except in the ordinary course
                of business, as necessary to joint venture partners or as required
                by
                applicable law for a period of one year. Without regard to whether
                any
                item of Confidential Information is deemed or considered confidential,
                material, or important, the parties hereto stipulate that as between
                them,
                to the extent such item is not generally known in the oil and gas
                industry, such item is important, material, and confidential and
                affects
                the successful conduct of the Company’s business and goodwill, and that
                any breach of the terms of this Section 9 shall be a material and
                incurable breach of this Agreement. Confidential Information shall
                not
                include: (i) information obtained or which became known to Deshpande
                other
                than through his employment by the Company; (ii) information in the
                public
                domain at the time of the disclosure of such information by Deshpande;
                (iii) information that Deshpande can document was independently developed
                by Deshpande; (iv) information that is disclosed by Deshpande with
                the
                prior written consent of the Company and (v) information that is
                disclosed
                by Deshpande as required by law, governmental regulation or court
                order.
                

            

    

     

    
      	 	
              (b)

            	
              Documents.
                Deshpande
                further agrees that all documents and materials furnished to Deshpande
                by
                the Company and relating to the Company’s business or prospective business
                are and shall remain the exclusive property of the Company. Deshpande
                shall deliver all such documents and materials, not copied, to the
                Company
                upon demand therefore and in any event upon expiration or earlier
                termination of this Agreement. Any payment of sums due and owing
                to
                Deshpande by the Company upon such expiration or earlier termination
                shall
                be conditioned upon returning all such documents and materials, and
                Deshpande expressly authorizes the Company to withhold any payments
                due
                and owing pending return of such documents and materials.
                

            

    

     

    
      
         

      

      
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              (c)

            	
              Inventions.
                All
                ideas, inventions, and other developments or improvements conceived
                or
                reduced to practice by Deshpande, alone or with others, during the
                Term of
                this Agreement, during working hours, that are within the scope of
                the
                business of the Company or that relate to or result from any of
                Deshpande’s work or projects or the services provided by Deshpande to the
                Company pursuant to this Agreement, shall be the exclusive property
                of the
                Company. Deshpande agrees to assist the Company, at the Company’s expense,
                to obtain patents and copyrights on any such ideas, inventions, writings,
                and other developments, and agrees to execute all documents necessary
                to
                obtain such patents and copyrights in the name of the Company. This
                clause
                excludes all intellectual property work initiated prior to the execution
                of this agreement. 

            

    

     

    
      	 	
              (d)

            	
              Disclosure.
                During
                the Term, Deshpande will promptly disclose to the Board of Directors
                full
                information concerning any interest, direct or indirect, of Deshpande
                (as
                owner, shareholder, partner, lender or other investor, director,
                officer,
                employee, consultant or otherwise) or any member of his immediate
                family
                in any business that is reasonably known to Employee to purchase
                or
                otherwise obtain services or products from, or to sell or otherwise
                provide services or products to, the Company or to any of its suppliers
                or
                customers. 

            

    

     

    10. Non-Compete.
      Except
      as expressly permitted herein, during the Term of this Agreement, Deshpande
      shall not engage in any of the following competitive activities: (a) engaging
      directly or indirectly in any business or activity substantially similar to
      any
      business or activity engaged in (or proposed to be engaged in) by the Company
      in
      North America; (b) engaging directly or indirectly in any business or activity
      competitive with any business or activity engaged in (or proposed to be engaged
      in) by the Company in Africa; (c) soliciting or taking away any employee, agent,
      representative, contractor, supplier, vendor, customer, franchisee, lender
      or
      investor of the Company, or attempting to so solicit or take away; (d)
      interfering with any contractual or other relationship between the Company
      and
      any employee, agent, representative, contractor, supplier, vendor, customer,
      franchisee, lender or investor; or (e) using, for the benefit of any person
      or
      entity other than the Company, any Confidential Information of the Company.
      The
      foregoing covenant prohibiting competitive activities shall survive the
      termination of this Agreement and shall extend, and shall remain enforceable
      against Deshpande, for the period of the lesser of (6) six months or the
      duration of termination pay as described in paragraph 13 below, following the
      date this Agreement is terminated. In addition, during the one-year period
      following such expiration or earlier termination, except as required by law,
      neither Deshpande nor the Company shall make any negative statement of any
      kind
      concerning the Company or its affiliates, or their directors, officers or agents
      or Deshpande. 

     

    11. Injunctive
      Relief.
      Deshpande acknowledges and agrees that the covenants and obligations of
      Deshpande set forth in Sections 9 and 10 with respect to non-competition,
      non-solicitation, confidentiality and the Company’s property relate to special,
      unique and extraordinary matters and that a violation of any of the terms of
      such covenants and obligations will cause the Company irreparable injury for
      which adequate remedies are not available at law. Therefore, Deshpande agrees
      that the Company shall be entitled to an injunction, restraining order or such
      other equitable relief (without the requirement to post bond) as a court of
      competent jurisdiction may deem necessary or appropriate to restrain Deshpande
      from committing any violation of the covenants and obligations referred to
      in
      this Section 11. These injunctive remedies are cumulative and in addition to
      any
      other rights and remedies the Company may have at law or in equity.

     

    
      
         

      

      
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    12. Survival.
      Deshpande agrees that the provisions of Sections 9, 10 and 11 shall survive
      expiration or earlier termination of this Agreement for any reasons, whether
      voluntary or involuntary, with or without cause, and shall remain in full force
      and effect thereafter. Notwithstanding the foregoing, if this Agreement is
      terminated upon the dissolution of the Company, the filing of a petition in
      bankruptcy by the Company or upon an assignment for the benefit of creditors
      of
      the assets of the Company, Sections 9, 10 and 11 shall be of no further force
      or
      effect. 

     

    13. Termination.
      Deshpande’s employment with the Company will be “at will”, meaning that either
      Desphande or the Company will be entitled to terminate your employment at any
      time and for any reason, with or without cause, after thirty (30) days written
      notice is given. Notwithstanding any other provisions hereof to the contrary,
      Deshpande’s employment hereunder shall terminate under the following
      circumstances: 

     

    
      	 	
              (a)

            	
              Voluntary
                Termination by Deshpande.
                Deshpande
                shall have the right to voluntarily terminate this Agreement and
                his
                employment hereunder at any time during the Employment Term.
                

            

    

     

    
      	 	
              (b)

            	
              Voluntary
                Termination by the Company.
                The
                Company shall have the right to voluntarily terminate this Agreement
                and
                Deshpande’s employment hereunder at any time. If the Company initiates an
                “at will” termination of Desphande’s employment as described above the
                Company agrees to pay Deshpande a lump-sum separation fee at the
                time of
                termination equal to six (6) months salary plus benefits.
                

            

    

     

    
      	 	
              (c)

            	
              Termination
                for Cause.
                The
                Company shall have the right to terminate this Agreement and Deshpande’s
                employment hereunder at any time for cause. For purposes of this
                Agreement, the term “cause” for termination by the Company shall be (a) a
                conviction of or plea of guilty or nolo
                contendere by
                Deshpande to a felony, or any crime involving fraud or embezzlement;
                (b)
                the refusal by Deshpande to perform his material duties and obligations
                hereunder; (c) Deshpande’s willful and intentional misconduct in the
                performance of his material duties and obligations; or (d) if Deshpande
                or
                any member of his family makes any personal profit arising out of
                or in
                connection with a transaction to which the Company is a party or
                with
                which it is associated without making disclosure to and obtaining
                the
                prior written consent of the Board of Directors. The written notice
                given
                hereunder by the Company to Deshpande shall specify in reasonable
                detail
                the cause for termination. For purposes of this Agreement, “family” shall
                mean Deshpande’s spouse and/or children. In the case of a termination for
                the causes described in (a) and (d) above, such termination shall
                be
                effective upon receipt of the written notice. In the case of the
                causes
                described in (b) and (c) above, such termination notice shall not
                be
                effective until ten (10) days after Deshpande’s receipt of such notice,
                during which time Deshpande shall have the right to respond to the
                Company’s notice and cure the breach or other event giving rise to the
                termination. 

            

    

     

    
      
         

      

      
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              (d)

            	
              Event
                of Sale, Merger or Change of Control.
                In
                the event of the sale, merger or change of control of the Company
                during
                the Employment Term, the Company or its successor(s) agree to immediately
                vest all unvested stock options and offer you employment under the
                terms
                given above, for a period of at least (6) six months after the sale
                or
                merger closing date. If this extension is not given by the Company
                or its
                successor(s) and accepted by you, then the Company or its successor(s)
                agree to pay to you a lump-sum separation fee equivalent to (6) six
                months
                of salary plus benefits. Employment “at will” provisions described above
                cannot be applied by the Company from 120 days before the date of
                the
                agreement to sell or merge the Company to the closing date. If an
“at
                will” action to terminate your employment is taken by the Company during
                this time period, or if you are asked to voluntarily end your employment
                by the Company during this time period, you will be entitled to immediate
                vesting of all unvested stock and options and a lump-sum payment
                of the
                equivalent of your salary and benefits for (6) six months, to be
                paid on
                or before the sale or merger closing date.

            

    

     

    
      	 	
              (e)

            	
              Termination
                Upon Death.
                If
                Deshpande dies during the Employment Term, this Agreement shall terminate,
                except that Deshpande’s legal representatives shall be entitled to receive
                any earned but unpaid compensation or expense reimbursement due hereunder
                through the date of death. 

            

    

     

    
      	 	
              (f)

            	
              Termination
                Upon Disability.
                If,
                during the Employment Term, Deshpande suffers and continues to suffer
                from
                a “Disability” (as defined below), then the Company may terminate this
                Agreement by delivering to Deshpande 30 calendar days’ prior written
                notice of termination based on such Disability, setting forth with
                specificity the nature of such Disability and the determination of
                Disability by the Company. For the purposes of this Agreement,
                “Disability” means Deshpande’s inability, with reasonable accommodation,
                to substantially perform Deshpande’s duties, services and obligations
                under this Agreement due to physical or mental illness or other disability
                for a continuous, uninterrupted period of 150 calendar days or two
                hundred
                and 180 days during any twelve month period. Upon any such termination
                for
                Disability, Deshpande shall be entitled to receive any earned but
                unpaid
                compensation or expense reimbursement due hereunder through the date
                of
                termination. 

            

    

     

    
      	 	
              (g)

            	
              Effect
                of Termination.
                

            

    

     

    
      	 	
              (i)

            	
              In
                the event that this Agreement and Deshpande’s employment is voluntarily
                terminated by Deshpande pursuant to Section 13(a), or in the event
                the
                Company terminates this Agreement for cause pursuant to Section 13(c),
                all
                obligations of the Company and all duties, responsibilities and
                obligations of Deshpande under this Agreement shall cease. Upon such
                termination, the Company shall (i) pay Deshpande a cash lump sum
                equal to
                all accrued base salary through the date of termination plus all
                accrued
                vacation pay and bonuses, if any; and (ii) any common stock options
                granted to Deshpande by the Company which have not vested pursuant
                to
                Section 4 hereof shall be terminated. Any common stock options granted
                to
                Deshpande by the Company pursuant to Section 4 that have vested at
                time of
                termination shall be exercisable for the life of the options.
                

            

    

     

    
      
         

      

      
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              (ii)

            	
              In
                the event that this Agreement and Deshpande’s employment is voluntarily
                terminated by the Company pursuant to Section 13(b), all obligations
                of
                the Company and all duties, responsibilities and obligations of Deshpande
                under this Agreement shall cease. Upon such termination, the Company
                shall
                pay Deshpande a cash lump sum equal to all accrued base salary through
                the
                date of termination plus all accrued vacation pay and bonuses, if
                any;
                (ii) the separation fee; and (iii) any common stock options granted
                to
                Deshpande by the Company pursuant to Section 4 hereof shall become
                immediately vested and Deshpande shall have right of option exercise
                for
                the life of the options. 

            

    

     

    
      	 	
              (iii)

            	
              In
                the event this Agreement is terminated upon the death of Deshpande
                pursuant to Sections 11(e), Deshpande’s estate shall be entitled to all
                cash compensation pursuant to Sections 4 and benefits pursuant to
                section
                5 for the period of 6 months after his death. Upon termination of
                this
                agreement as a result of death any common stock options granted to
                Deshpande by the Company pursuant to Section 4 hereof shall become
                immediately vested and Deshpande’s estate shall have right of option
                exercise for the life of the options. Payment will be made to Deshpande’s
                estate. In the event of a merger, consolidation, sale, or change
                of
                control, the Company’s rights hereunder shall be assigned to the surviving
                or resulting company, which company shall then honor this Agreement
                with
                Deshpande and his estate. 

            

    

     

    
      	 	
              (iv)

            	
              In
                the event that this Agreement and Deshpande’s employment is terminated by
                disability pursuant to Section 11(f), all obligations of the Company
                and
                all duties, responsibilities and obligations of Deshpande under this
                Agreement shall cease. Upon such termination, the Company shall pay
                Deshpande a cash lump sum equal to all accrued base salary through
                the
                date of termination plus all accrued vacation pay and bonuses, if
                any;
                (ii) the separation fee; and (iii) any common stock options granted
                to
                Deshpande by the Company pursuant to Section 4 hereof shall become
                immediately vested and Deshpande shall have right of option exercise
                for
                the life of the options. 

            

    

     

    All
      obligations of the Company to pay separation pay in this Agreement are subject
      to the condition that Employee enter into a standard, full and complete release
      and separation agreement confirming that he is not entitled to any additional
      monies and that he will not bring any actions against the Company or its
      affiliates for any reason.

     

    
      
         

      

      
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    14. Resignation
      as Officer.
      In the
      event that Deshpande’s employment with the Company is terminated for any reason
      whatsoever, Deshpande agrees to immediately resign as an Officer and/or Director
      of the Company and any related entities. For the purposes of this Section 14,
      the term the “Company” shall be deemed to include subsidiaries, parents, and
      affiliates of the Company. 

     

    15. Governing
      Law, Jurisdiction and Venue.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Colorado without giving effect to any applicable conflicts of law
      provisions. 

     

    16. Independent
      Legal Advice.
      The
      Company has obtained legal advice concerning this Agreement and has requested
      that Deshpande obtain independent legal advice with respect to same before
      executing this Agreement. Deshpande, in executing this Agreement, represents
      and
      warrants to the Company that he has been so advised to obtain independent legal
      advice, and that prior to the execution of this Agreement he has so obtained
      independent legal advice, or has, in his discretion, knowingly and willingly
      elected not to do so. 

     

    17. Business
      Opportunities.
      During
      the Employment Term Deshpande agrees to bring to the attention of the Company’s
      Chief Executive Officer and the Company’s Board of Directors all written
      business proposals that come to Deshpande’s attention and all business or
      investment opportunities of whatever nature that are created or devised by
      Deshpande and that relate to areas in which the Company currently conducts
      business or reasonably expects to conduct business. 

     

    18. Employee’s
      Representations and Warranties.
      Deshpande hereby represents and warrants that he is not under any contractual
      obligation to any other company, entity or individual that would prohibit or
      impede Deshpande from performing his duties and responsibilities under this
      Agreement and that he is free to enter into and perform the duties and
      responsibilities required by this Agreement. 

     

    19. Indemnification.
      

     

    
      	 	
              (a)

            	
              The
                Company agrees that if Deshpande is made a party, or is threatened
                to be
                made a party, to any action, suit or proceeding, whether civil, criminal,
                administrative or investigative (a “Proceeding”), by reason of the fact
                that he is or was a director, officer or employee of the Company
                or is or
                was serving at the request of the Company as a director, officer,
                member,
                employee or agent of another corporation, partnership, joint venture,
                trust or other enterprise, including service with respect to employee
                benefit plans, whether or not the basis of such Proceeding is Deshpande’s
                alleged action in an official capacity while serving as a director,
                officer, member, employee or agent, Deshpande shall be indemnified
                and
                held harmless by the Company to the fullest extent permitted or authorized
                by the Company’s certificate of incorporation or bylaws or, if greater, by
                the laws of the State of Colorado, against all cost, expense, liability
                and loss (including, without limitation, attorney’s fees, judgments,
                fines, ERISA excise taxes or penalties and amounts paid or to be
                paid in
                settlement) reasonably incurred or suffered by Deshpande in connection
                therewith, and such indemnification shall continue as to Deshpande
                even if
                he has ceased to be a director, member, employee or agent of the
                Company
                or other entity and shall inure to the benefit of Deshpande’s heirs,
                executors and administrators. The Company shall advance to Deshpande
                to
                the extent permitted by law all reasonable costs and expenses incurred
                by
                his in connection with a Proceeding within 20 days after receipt
                by the
                Company of a written request, with appropriate documentation, for
                such
                advance. Such request shall include an undertaking by Deshpande to
                repay
                the amount of such advance if it shall ultimately be determined that
                he is
                not entitled to be indemnified against such costs and expenses.
                

            

    

     

    
      
         

      

      
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              (b)

            	
              Neither
                the failure of the Company (including its Board of Directors, independent
                legal counsel or stockholders) to have made a determination prior
                to the
                commencement of any proceeding concerning payment of amounts claimed
                by
                Deshpande that indemnification of Deshpande is proper because he
                has met
                the applicable standard of conduct, nor a determination by the Company
                (including its Board of Directors, independent legal counselor
                stockholders) that Deshpande has not met such applicable standard
                of
                conduct, shall create a presumption that Deshpande has not met the
                applicable standard of conduct. 

            

    

     

    
      	 	
              (c)

            	
              The
                Company agrees to continue and maintain a liability insurance policy
                covering Deshpande to the extent the Company provides such coverage
                for
                its other executives and officers. 

            

    

     

    
      	 	
              (d)

            	
              Promptly
                after receipt by Deshpande of notice of any claim or the commencement
                of
                any action or proceeding with respect to which Deshpande is entitled
                to
                indemnity hereunder, Deshpande shall notify the Company in writing
                of such
                claim or the commencement of such action or proceeding, and the Company
                shall (i) assume the defense of such action or proceeding, (ii) employ
                counsel reasonably satisfactory to Deshpande, and (iii) pay the reasonable
                fees and expenses of such counsel. Notwithstanding the preceding
                sentence,
                Deshpande shall be entitled to employ counsel separate from counsel
                for
                the Company and from any other party in such action if Deshpande
                reasonably determines that a conflict of interest exists which makes
                representation by counsel chosen by the Company not advisable. In
                such
                event, the reasonable fees and disbursements of such separate counsel
                for
                Deshpande shall be paid by the Company to the extent permitted by
                law.
                

            

    

     

    
      	 	
              (e)

            	
              After
                the termination of this Agreement and upon the request of Deshpande,
                the
                Company agrees to reimburse Deshpande for all reasonable travel,
                legal and
                other out-of-pocket expenses related to assisting the Company to
                prepare
                for or defend against any action, suit, proceeding or claim brought
                or
                threatened to be brought against the Company or to prepare for or
                institute any action, suit, proceeding or claim to be brought or
                threatened to be brought against a third party arising out of or
                based
                upon the transactions contemplated herein and in providing evidence,
                producing documents or otherwise participating in any such action,
                suit,
                proceeding or claim. In the event Deshpande is required to appear
                after
                termination of this Agreement at a judicial or regulatory hearing
                in
                connection with Deshpande’s employment hereunder, or Deshpande’s role in
                connection therewith, the Company agrees to pay Deshpande a sum,
                to be
                mutually agreed upon by Deshpande and the Company, a daily fee and
                reasonable expenses for each day of his appearance and each day of
                preparation therefor. 

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    20. Notices.
      All
      demands, notices, and other communications to be given hereunder, if any, shall
      be in writing and shall be sufficient for all purposes if personally delivered,
      sent by facsimile or sent by United States mail to the address below or such
      other address or addresses as such party may hereafter designate in writing
      to
      the other party as herein provided. 

     

    
      	
              Company:
                

            	
              Deshpande:
                

            
	
              Zulu
                Energy Corp. 

            	
              3358
                Daley Center Drive 

            
	
              122
                N. Main Street 

            	
              #1406
                

            
	
              Sheridan,
                WY 82801 

            	
              San
                Diego, CA 92123 

            

    

    

    21. Entire
      Agreement; Miscellaneous Provisions.
      This
      Agreement contains the entire agreement of the parties and there are no other
      promises or conditions in any other agreement, whether oral or written. This
      Agreement supersedes any prior written or oral agreements between the parties.
      This Agreement may be modified or amended, if the amendment is made in writing
      and is signed by both parties. This Agreement is for the unique personal
      services of Deshpande and is not assignable or delegable, in whole or in part,
      by Deshpande. This Agreement may be assigned or delegated, in whole or in part,
      by the Company and, in such case, shall be assumed by and become binding upon
      the person, firm, company, corporation or business organization or entity to
      which this Agreement is assigned, subject to the provisions of section 13 (d).
      The headings contained in this Agreement are for reference only and shall not
      in
      any way affect the meaning or interpretation of this Agreement. If any provision
      of this Agreement shall be held to be invalid or unenforceable for any reason,
      the remaining provisions shall continue to be valid and enforceable. The failure
      of either party to enforce any provision of this Agreement shall not be
      construed as a waiver or limitation of that party’s right to subsequently
      enforce and compel strict compliance with every provision of this Agreement.
      This Agreement may be executed in two or more counterparts, each of which shall
      be deemed an original, but all of which together shall constitute one and the
      same instrument and, in pleading or proving any provision of this Agreement,
      it
      shall not be necessary to produce more than one of such counterparts.

     

    [Remainder
      of page intentionally left blank.]

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

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

     

    
      	
              ZULU
                ENERGY CORP.

            	 	
              SATYENDRA
                DESHPANDE

            
	 	 	 	 
	
              By:

            	
              /s/
                PAUL STROUD

            	 	
              /s/
                SATYENDRA DESHPANDE

            
	
              Name:
                

            	
              PAUL
                STROUD

            	 	 
	
              Title:
                

            	
              PRESIDENT
                AND CEO

            	 	 

    

    
      
         

      

      
        11Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    

    THIS
      EMPLOYMENT AGREEMENT (“Agreement”)
      dated
      and effective as of May 15, 2008 (the “Effective
      Date”),
      between uBid.com Holdings, Inc., a Delaware corporation, with its principal
      place of business located at 8725 W. Higgins Road, Suite 900, Chicago, Illinois
      60631, its affiliates, subsidiaries, successors and assigns (the “Company”),
      and
      Glenn R. Weisberger, an individual (the “Executive”).

    

    1.  Employment
      Period.
      As of
      the Effective Date, the Company shall employ the Executive, and the Executive
      agrees to be employed by Company in the position of Executive Vice President
      in
      accordance with the terms and subject to the conditions of this Agreement,
      commencing on the Effective Date and terminating on the day which is the second
      anniversary of the Effective Date, unless earlier terminated in accordance
      with
      the provisions of Section 11, in which case the provisions of Section 11 shall
      control (the “Term”).
      If
      this Agreement remains in effect upon expiration of the Term and/or thereafter,
      it shall automatically renew itself and continue in full force and effect from
      year to year, subject to termination in accordance with the provisions of
      Section 11, unless written notice of election not to renew, or written notice
      of
      election to modify any provision of this Agreement, is given by one party,
      and
      received by the other not later than 60 calendar days prior to the expiration
      of
      this Agreement or any extension hereto.

     

    The
      Executive affirms that, except as otherwise set forth herein, no obligation
      exists between the Executive and any other entity which would prevent or impede
      the Executive’s immediate and full performance of every obligation of this
      Agreement.

     

    2.  Position
      and Duties.
      During
      the Term of the Executive’s employment hereunder, the Executive shall serve in,
      and assume duties and responsibilities consistent with, the position of
      Executive Vice President. The Executive agrees to devote his working
      time, as
      set
      forth in Section 4 hereof, utilizing his skill, energy and best business efforts
      on behalf of the Company. Notwithstanding anything to the contrary contained
      herein, upon written notice to the Board of Directors the Executive may hold
      officer and non-executive director positions (or the equivalent position) in
      or
      at other entities not inconsistent with the best interests of the Company so
      long as the Board of Directors has not provided Executive written notice that
      it
      has determined that such activities will interfere with his ability to perform
      his duties and responsibilities hereunder. 

     

    3.  No
      Conflicts.
      The
      Executive covenants and agrees that for so long as he is employed by the
      Company, he shall inform the Company of each and every business opportunity
      related to the business of the Company of which he becomes aware, and that
      he
      will not, directly or indirectly, exploit any such opportunity for his own
      account, nor will he render any services to any other person or business,
      acquire any interest of any type in any other business (except for an ownership
      interest of not more than 1% of a publicly traded entity) or engage in any
      activities that conflict with the Company’s best interests or which is in
      competition with the Company. 

     

    4.  Days/Hours
      of Work and Work Week.
      The
      Executive shall normally work 5 days per week (typically Monday - Friday) and
      his hours of work shall be appropriate to the nature of the Executive’s duties
      and responsibilities with the Company, it being recognized that such duties
      and
      responsibilities require flexibility in the Executive’s work schedule.

     

    5.  Employment
      Location.
      The
      locus of the Executive’s employment with the Company shall be the Company’s
      principal executive office which is currently located at 8725 W. Higgins Road,
      Suite 900, Chicago, Illinois 60631. Within 12 months of the Effective Date,
      the
      Executive shall relocate his residence to a residence located within 50 miles
      of
      the Company’s corporate headquarters in Chicago, Illinois.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.  Compensation.

     

    (a)  Base
      Salary.
      During
      the first 12 months of the Term, the Company shall pay, and the Executive agrees
      to accept, in consideration for the Executive’s services hereunder, an annual
      salary of $240,000, less all applicable taxes and other appropriate deductions.
      Thereafter, the
      Company’s Board of Directors (the “Board”)
      shall
      annually review the Executive’s base salary to determine whether such salary
      should be increased and the amount of any such increase shall be within the
      Board’s sole discretion. 

     

    (b)  Annual
      Performance Bonus.
      During
      the Term of this Agreement, the Executive
      shall be entitled to an annual performance bonus. The
      Company is developing a Company wide annual bonus program, and will deliver
      a
      more detailed formal written plan document setting forth the final terms and
      conditions of the annual performance bonus for the first year of this
      Agreement.

     

    7.  Business
      Expenses.
      During
      the Term of this Agreement, the Executive shall be entitled to payment or
      reimbursement of any and all reasonable expenses paid or incurred by him in
      connection with and related to the performance of his duties and
      responsibilities hereunder for the Company including relocation expenses (per
      the Company’s Relocation Policy) incurred in connection with the relocation of
      the Executive’s residence as provided in Section 5. All requests by the
      Executive for payment of
      reimbursement of such expenses shall be supported by appropriate invoices,
      vouchers, receipts or such other supporting documentation in such form and
      containing such information as the Company may from time to time reasonably
      require, evidencing that the Executive, in fact, incurred or paid said
      expenses.

     

    8.  Vacation.
      During
      the Term of this Agreement, the Executive shall be entitled to accrue 20
      vacation days per year. 

     

    9.  Equity
      Compensation.

     

    (a)  Stock
      Options.
      Pursuant to the Company’s 2005 Equity Incentive Plan (the “Plan”) and subject to
      approval of the Board of Directors, the Company shall issue to the Executive
      stock options to acquire 200,000 shares of the Company’s common stock (the
“Common Stock”) under the Plan at an exercise price equal to the fair market
      value of the Common Stock as of the date of grant. The stock options granted
      pursuant to this Section and each subsequent grant of options to the Executive
      during the Term shall be evidenced by a written stock option
      agreement.

     

    (b)  Vesting
      and Exercise.
      The
      stock options to be granted pursuant to this Section shall vest and become
      exercisable as follows: 1/4 upon the first anniversary of the grant date, 1/4
      upon the second anniversary of the grant date, and 1/4 on the third anniversary
      of the grant date and 1/4 on the fourth anniversary of the grant date. Upon
      a
      Change of Control (as defined below), all options granted pursuant to this
      Section shall immediately become fully vested. Subsequent stock options granted
      to the Executive shall vest pursuant to the terms and conditions of the Plan.
      

     

    10.  Other
      Benefits.
      During
      the Term of this Agreement, subject to the terms and conditions of such plans
      and programs as they exist from time to time, Executive shall be entitled to
      participate in the various employee benefit plans and programs applicable to
      executive employees of the Company including, but not limited to, incentive,
      savings, retirement (401(k)), and welfare benefit plans, including, without
      limitation, health, medical,
      dental,
      vision,
      life (including accidental death and dismemberment)
      and
      disability insurance plans (collectively, “Benefit
      Plans”),
      in
      substantially the same manner and at
      substantially the same levels as the Company makes
      such
      opportunities available to the Company’s
      executive employees. Executive shall also participate in the Company’s
      performance share award plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.  Termination
      of Employment.

     

    (a)  Death.
      In the
      event that, during the Term of this Agreement, the Executive dies, this
      Agreement and the Executive’s employment with the Company shall automatically
      terminate and the Company shall have no further obligations to the Executive
      or
      his heirs, administrators or executors with respect to compensation and
      benefits, except for the obligation to pay the Executive’s heirs, administrators
      or executors any earned but unpaid base salary and unpaid pro
      rata
      annual
      bonus. The Company shall deduct, from all payments made hereunder, all
      applicable taxes, including income tax, FICA and FUTA, and other appropriate
      deductions.

     

    (b)  Disability. In
      the
      event that, during the Term of this Agreement, the Executive shall be prevented
      from performing his essential duties and responsibilities hereunder to the
      full
      extent required by the Company by reason of Disability, as defined below,
this
      Agreement and the Executive’s employment with the Company shall automatically
      terminate and the Company shall have no further obligations to the Executive
      or
      his heirs, administrators or executors with respect to compensation and
      benefits, except for the obligation to pay the Executor’s heirs, administrators
      or executors any earned but unpaid base salary and unpaid pro
      rata
      annual
      bonus. The Company shall deduct, from all payments made hereunder, all
      applicable taxes, including income tax, FICA and FUTA, and other appropriate
      deductions through
      the last date of the Executive’s employment with the Company. For purposes of
      this Agreement, “Disability”
shall
      mean a physical or mental impairment that, in the Board’s discretion, based upon
      the medical opinions of two qualified physicians specializing in the area or
      areas of the Executive’s affliction, one of whom shall be chosen by the Board
      and one of whom shall be chosen by the Executive, prevents the performance
      by
      the Executive, with or without reasonable accommodation, of his essential duties
      and responsibilities hereunder for a period of not less than six months in
      any
      12 month period.
      If such
      medical opinions by the two qualified physicians contradict one another, the
      medical opinion of an additional qualified physician shall be obtained. The
      physician which is selected to provide this additional medical opinion shall
      be
      one that the Board and the Executive shall mutually agree upon in good faith.
      This third opinion shall be binding on the parties, regardless of what the
      prior
      medical opinions were.

     

    (c)  Cause.

     

    (i)  At
      any
      time during the Term of this Agreement, the Company may terminate this Agreement
      and the Executive’s employment hereunder for Cause. For purposes of this
      Agreement, “Cause”
shall
      mean:
      (A)
the
      continued failure of the Executive to substantially perform his material duties
      to and responsibilities for the Company (other than any such failure resulting
      from a Disability); (B) the
      conviction of, or plea of guilty or nolo
      contendere
      to a
      felony; or (C) fraud,
      dishonesty, competition with the Company, unauthorized use of any of the
      Company’s or any subsidiary’s trade secrets or confidential
      information, a
      material breach of the Company’s policies or codes of conduct, a willful or
      material breach of any agreement between the Executive and the Company,
      including this Agreement, or gross misconduct which is materially and
      demonstratively injurious to the Company. 

     

    (ii)  Termination
      of the Executive’s employment for Cause shall be made by delivery to the
      Executive of written notice from the Board specifying the basis of the
      Executive’s termination is for Cause, describing the conduct or circumstances
      justifying termination for Cause, and indicating that the Board has found that
      such conduct or circumstances has occurred and warrants the Executive’s
      termination of employment for Cause. Upon receipt of such demand or notice,
      the
      Executive, shall be entitled to appear before the Board within ten business
      days
      for the purpose of demonstrating that the conduct indicated does not exist
      or
      that breach of 11(c)(i)(A) has been cured. After such appearance, the Board
      shall make a final determination on the existence of a basis warranting
      Executive’s termination for Cause. No termination for Cause will be final until
      the Board has reached such a determination. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (iii)  Upon
      termination of Executive’s employment for Cause, the Company shall have no
      further obligations or liability to the Executive or his heirs, administrators
      or executors with respect to compensation and benefits thereafter, except for
      the obligation to pay the Executive any earned but unpaid base salary through
      the Executive’s last day of employment with the Company. The Company shall
      deduct, from all payments made hereunder, all applicable taxes, including income
      tax, FICA and FUTA, and other appropriate deductions.

     

    (d)  Good
      Reason.

     

    (i)  At
      any
      time during the Term of this Agreement, subject to the conditions set forth
      in
      Section 11(d)(iii) below, the Executive may terminate this Agreement and the
      Executive’s employment with the Company for Good Reason. For purposes of this
      Agreement, Good
      Reason
      shall
      mean the occurrence, without the Executive’s consent, of any of the following
      events: (A) the
      assignment of duties and responsibilities that are inconsistent with and reflect
      a substantial diminution in the duties and responsibilities assumed by the
      Executive on the Effective Date; (B) a
      Change
      of Control (as defined in Section 11(d)(ii) herein below) that results, within
      12 months following the Change of Control, in the termination of the Executive’s
      employment with the Company or a material adverse change in the Executive’s
      duties and responsibilities or, as applicable, in connection with which the
      successor does not agree to assume, or is not deemed to assume by operation
      of
      law, the Company’s obligations under this Agreement; (C) a material breach of
      this Agreement by the Company; (D) a relocation of the Company’s principal
      executive offices to a location that is greater than 50 miles from its current
      location; or (E) a reduction in the Executive’s base salary or a material
      reduction in other benefits, as described in Section 10(a), other than
      reductions generally applicable to executives of the Company. 

     

    (ii)  For
      purposes of this Agreement, “Change
      of Control”
means:
      (A) any sale, lease, exchange or other transfer (in one transaction or a series
      of related transactions) of all, or substantially all, of the assets of the
      Company other than any sale, lease, exchange or other transfer to any company
      where the Company owns, directly or indirectly, 100 percent of the outstanding
      voting securities of such company after any such transfer; (B) any person or
      persons (as such term is used in Section 13(d) of the Exchange Act of 1934,
      as
      amended), other than the holders of voting securities of the Company as of
      the
      Effective Date, shall acquire or become the beneficial owner (within the meaning
      of Rule 13d-3 under the Exchange Act) whether directly, indirectly, beneficially
      or of record, of 51% or more of outstanding voting securities of the Company;
      or
      (C) consummation by any entity, person, or group (including any affiliate
      thereof, other than the Company) of a tender offer or exchange offer where
      the
      offeree acquires more than 51% of the then outstanding voting securities of
      the
      Company.

     

    (iii)  The
      Executive shall be entitled to terminate this Agreement for Good Reason if
      Executive has delivered to the Company written notice of his intention to
      terminate this Agreement for Good Reason promptly, and in no event longer than
      5
      business days, after either the date on which the Executive (A) receives written
      notice from the Company of the occurrence of an event within the meaning of
      Good
      Reason under Section 11(d)(i) or (B) obtains actual knowledge of the occurrence
      of an event within the meaning of Good Reason under Section 11(d)(i) and which
      provides, in reasonable detail, the circumstances of the occurrence of the
      event; provided, however, that the Executive shall not be entitled to terminate
      this Agreement for Good Cause if the Company eliminates such event or
      circumstances within 10 business days of the Company’s receipt of the written
      notice described in this Section. 

     

    (iv)  In
      the
      event that Executive terminates this Agreement for Good Reason, the Company
      shall pay or provide to the Executive (or, following his death, to the
      Executive’s heirs, administrators or executors) any earned but unpaid base
      salary and unpaid pro
      rata
      annual
      bonus. In addition, the Company shall pay Executive in 24 equal semi-monthly
      installments as severance an amount equal to the Executive’s annual base salary
      on the date of the termination of this Agreement in
      accordance with the Company’s standard payroll schedule less all applicable
      taxes and other appropriate deductions and adjustments pursuant to the Company’s
      employee compensation policies in effect on such date, and
      Executive shall receive for a period of 12 months following the date of
      termination, COBRA coverage, at the Company’s expense, under the Benefits Plans;
      provided, however, that continued coverage shall be canceled or reduced to
      the
      extent of any comparable benefit coverage offered to the Executive by a
      subsequent employer or other person or entity for which the Executive performs
      services, including but not limited to consulting services. Executive’s receipt
      of such severance pay and benefits shall be conditioned on Executive’s
      compliance with Sections, 12, 13 and 14 of this Agreement and his execution,
      return, non-rescission and compliance with a release of claims agreement in
      a
      form to be prepared by the Company. The
      Company shall deduct, from all payments made hereunder, all applicable taxes,
      including income tax, FICA and FUTA, and other appropriate deductions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)  Without
      Good Reason or Cause.

     

    (i)  By
      The Executive.
      At any
      time during the Term of this Agreement, the Executive shall be entitled to
      terminate this Agreement and his employment without Good Reason by providing
      30
      calendar days prior written notice of such termination to the Company. Upon
      termination by the Executive of this Agreement pursuant to this Section, the
      Company shall have no further obligations to the Executive or his heirs,
      administrators or executors with respect to compensation and benefits
      thereafter, except for the obligation to pay the Executive (or, following his
      death, to the Executive’s heirs, administrators or executors) any earned but
      unpaid base salary and pro
      rata
      annual
      bonus. The Company shall deduct, from all payments made hereunder, all
      applicable taxes, including income tax, FICA and FUTA, and other appropriate
      deductions.

     

    (ii)  By
      The Company.
      At any
      time during the Term of this Agreement, the Company shall be entitled to
      terminate this Agreement and Executive’s employment without Cause by providing
      30 calendar days prior written notice of such termination to the Executive.
      Upon
      termination by the Company of this Agreement without Cause, the Company shall
      pay or provide to the Executive (or, following his death, to the Executive’s
      heirs, administrators or executors): any earned but unpaid base salary and
      unpaid pro
      rata
      annual
      bonus. In addition, the Company shall pay Executive in 24 equal semi-monthly
      installments as severance an amount equal to the Executive’s annual base salary
      on the date of the termination of this Agreement in
      accordance with the Company’s standard payroll schedule less all applicable
      taxes and other appropriate deductions and adjustments pursuant to the Company’s
      employee compensation policies in effect on such date, and
      Executive shall receive for a period of 12 months following the date of
      termination, COBRA coverage, at the Company’s expense, under the Benefits Plans;
      provided, however, that continued coverage shall be canceled or reduced to
      the
      extent of any comparable benefit coverage offered to the Executive by a
      subsequent employer or other person or entity for which the Executive performs
      services, including but not limited to consulting services. Executive’s receipt
      of such severance pay and benefits shall be conditioned on Executive’s
      compliance with Sections, 12, 13 and 14 of this Agreement and his execution,
      return, non-rescission and compliance with a release of claims agreement in
      a
      form to be prepared by the Company. The
      Company shall deduct, from all payments made hereunder, all applicable taxes,
      including income tax, FICA and FUTA, and other appropriate deductions.

     

    12.  Confidential
      Information.
      

     

    (a)  The
      Executive expressly acknowledges that, in the performance of his duties and
      responsibilities with the Company, he has been exposed, and will be exposed,
      to
      the trade secrets, business and/or financial secrets and confidential and
      proprietary information of the Company, its affiliates and/or its clients or
      customers (“Confidential
      Information”).
      The
      term “Confidential
      Information”
      includes, without limitation, information or material that has actual or
      potential commercial value to the Company, its affiliates and/or its clients
      or
      customers and is not generally known to and is not readily ascertainable by
      proper means to persons outside the Company, its affiliates and/or its clients
      or customers.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)  Except
      as
      authorized in writing by the Board, during the performance of the Executive’s
      duties and responsibilities for the Company and until such time as any such
      Confidential Information becomes generally known to and readily ascertainable
      by
      proper means to persons outside the Company, its affiliates and/or its clients
      or customers,
      the
      Executive agrees to keep strictly confidential and not use for his personal
      benefit or the benefit to any other person or entity the Confidential
      Information, whether or not prepared or developed by the Executive. Confidential
      Information includes, without limitation, the following, whether or not
      expressed in a document or medium, regardless of the form in which it is
      communicated, and whether or not marked “trade secret” or “confidential” or any
      similar legend: (i) lists of and/or information concerning customers, suppliers,
      employees, consultants, and/or co-venturers of the Company, its affiliates
      or
      its clients or customers; (ii) information submitted by customers, suppliers,
      employees, consultants and/or co-venturers of the Company, its affiliates and/or
      its clients or customers; (iii) information concerning the business of the
      Company, its affiliates and/or its clients or customers, including, without
      limitation, cost information, profits, sales information, prices, accounting,
      unpublished financial information, business plans or proposals, markets and
      marketing methods, advertising and marketing strategies, administrative
      procedures and manuals, the terms and conditions of the Company’s contracts and
      trademarks and patents under consideration, distribution channels, franchises,
      investors, sponsors and advertisers; (iv) technical information concerning
      products and services of the Company, its affiliates and/or its clients or
      customers, including, without limitation, product data and specifications,
      diagrams, flow charts, know how, processes, designs, formulae, inventions and
      product development; (v) lists of and/or information concerning applicants,
      candidates or other prospects for employment, independent contractor or
      consultant positions at or with any actual or prospective customer or client
      of
      Company and/or its affiliates, any and all confidential processes, inventions
      or
      methods of conducting business of the Company, its affiliates and/or its clients
      or customers; (vi) any and all versions of proprietary computer software
      (including source and object code), hardware, firmware, code, discs, tapes,
      data
      listings and documentation of the Company, its affiliates and/or its clients
      or
      customers; (vii) any other information disclosed to the Executive by, or which
      the Executive obtained under a duty of confidence from, the Company, its
      affiliates and/or its clients or customers; (viii) all other information
      concerning the Company not generally known to the public which, if misused
      or
      disclosed, could reasonably be expected to adversely affect the business of
      the
      Company, its affiliates and/or its clients or customers. Confidential
      Information shall not include (i) information which is in the public domain
      or
      which enters the public domain without the fault of Executive, (ii) information
      which was in the possession of Executive in written or other documentary form
      prior to the time of disclosure by the Company to Executive, and (iii)
      information which is required by Executive to be disclosed in legal proceedings,
      including pursuant to subpoena or court order.

     

    (c)  The
      Executive affirms that he does not possess and will not rely upon the protected
      trade secrets or confidential or proprietary information of his prior
      employer(s) in providing services to the Company.

     

    (d)  In
      the
      event that the Executive’s employment with the Company terminates for any
      reason, the Executive shall deliver forthwith to the Company any and all
      originals and copies of Confidential Information.

     

    13.  Ownership
      and Assignment of Inventions. 

     

    (a)  The
      Executive acknowledges that, in connection with his duties and responsibilities
      relating to his employment with the Company, he and/or other employees of the
      Company working with him, without him or under his supervision, may create,
      conceive of, make, prepare, work on or contribute to the creation of, or may
      be
      asked by the Company or its affiliates to create, conceive of, make, prepare,
      work on or contribute to the creation of, without limitation, lists, business
      diaries, business address books (except
      for business addresses and business address books not related to the Company),
      documentation, ideas, concepts, inventions, designs, works of authorship,
      computer programs, audio/visual works, developments, proposals, works for hire
      or other materials to the extent that any of the same relate to any actual
      or
      reasonably anticipated Business of the Company (as such phrase is defined in
      paragraph 14(a) hereof) or any of the Company’s affiliates (“Inventions”).
      Executive expressly acknowledges that all of his activities and efforts relating
      to any Inventions, whether or not performed during his or the Company’s regular
      business hours, are within the scope of his employment with the Company and
      that
      the Company owns all right, title and interest in and to all Inventions,
      including, to the extent that they exist, all intellectual property rights
      thereto, including, without limitation, copyrights, patents and trademarks
      in
      and to all Inventions. The Executive also acknowledges and agrees that the
      Company owns and is entitled to sole ownership of all rights and proceeds to
      all
      Inventions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)  The
      Executive expressly acknowledges and agrees to assign to the Company, and hereby
      assigns to the Company, all of the Executive’s right, title and interest in and
      to all Inventions, including, to the extent they exist, all intellectual
      property rights thereto, including, without limitation, copyrights, patents
      and
      trademarks in and to all Inventions.

     

    (c)  In
      connection with all Inventions, the Executive agrees to disclose any Invention
      promptly to the Company and to no other person or entity. The Executive further
      agrees to execute promptly, at the Company’s request, specific written
      assignments of the Executive’s right, title and interest in any Inventions, and
      do anything else reasonably necessary to enable the Company to secure or obtain
      a copyright, patent, trademark or other form of protection in or for any
      Invention in the United States or other countries.

     

    (d)  The
      Executive acknowledges that all rights, waivers, releases and/or assignments
      granted in this Section by the Executive are freely assignable by the Company
      and are made for the benefit of the Company and its Affiliates, subsidiaries,
      licensees, successors and assigns.

     

    14.  Non-Competition
      And Non-Solicitation.
      

     

    (a)  The
      Executive agrees and acknowledges that the Confidential Information that the
      Executive will receive is valuable to the Company, its
      affiliates and/or its clients or customers, and
      that
      its protection and maintenance constitutes a legitimate business interest of
      Company, its
      affiliates and/or its clients or customers
      to be
      protected by the non-competition restrictions set forth herein. The Executive
      agrees and acknowledges that the non-competition restrictions set forth herein
      are reasonable and necessary and do not impose undue hardship or burdens on
      the
      Executive. The Executive also acknowledges that the products and services
      developed or provided by the Company, its
      affiliates and/or its clients or customers
      are or
      are intended to be sold, provided, licensed and/or distributed to customers
      and
      clients in and throughout the United States (the “Geographic
      Boundary”),
      and
      that the Geographic Boundary, scope of prohibited competition, and time duration
      set forth in the non-competition restrictions set forth below are reasonable
      and
      necessary to maintain the value of the Confidential Information of, and to
      protect the goodwill and other legitimate business interests of, the Company,
      its
      affiliates and/or its clients or customers.
      The
      Executive also acknowledges that the business of the Company is the offering
      through its online marketplace of high quality new, overstock, close-out and
      refurbished brand name consumer merchandise (the “Business
      of the Company”).

     

    (b)  The
      Executive hereby agrees and covenants that he shall not, directly or indirectly,
      in any capacity whatsoever, including, without limitation, as an employee,
      employer, consultant, principal, partner, shareholder, officer, director or
      any
      other individual or representative capacity (other than a holder of less than
      one percent (1%) of the outstanding voting shares of any publicly held company),
      or whether on the Executive’s own behalf or on behalf of any other person or
      entity or otherwise howsoever, during the Executive’s employment with the
      Company and for a period of one year following the termination of his employment
      for any reason, whether voluntary or involuntary, in the Geographic
      Boundary:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)  Engage,
      own, manage, operate, control, be employed by, consult for, participate in,
      or
      be connected in any manner with the ownership, management, operation or control
      of any business in competition with the Business of the Company; 

     

    (ii)  Solicit,
      persuade or induce any Customer: to terminate, reduce or refrain from renewing,
      extending, or entering into contractual or other relationships with the Company
      or to become a customer of or enter into any contractual or other relationship
      with any other individual, person or entity for the purpose of purchasing
      competitive products or services; or

     

    (iii)  Recruit,
      hire, induce, contact, divert or solicit, or attempt to recruit, induce,
      contact, divert or solicit, any employee of the Company to leave the employment
      thereof, whether or not any such employee is party to an employment agreement.
      

     

    15.  Indemnification.
      The
      Company hereby covenants and agrees to indemnify the Executive to the fullest
      extent permitted by law and to hold the Executive harmless fully, completely,
      and absolutely against and in any respects to any and all actions, suits,
      proceedings, claims, demands, judgments, costs, expenses (including attorneys’
fees), losses, and damages resulting from the Executive’s good faith performance
      of his job duties pursuant to this Agreement. The Company also hereby agrees
      to
      cover the Executive under a directors’ and officers’ liability insurance policy
      at all times while an employee and for the applicable statute of limitations
      after termination hereof, with such coverage no less favorable than that given
      to other executive employees of the Company.

     

    16.  Notice.
      For
      purposes of this Agreement, notices and all other communications provided for
      in
      this Agreement or contemplated hereby shall be in writing and shall be deemed
      to
      have been duly given when personally delivered, delivered by a nationally
      recognized overnight delivery service or when mailed United States Certified
      or
      registered mail, return receipt requested, postage prepaid, and addressed as
      follows:

     

    If
      to the
      Company:  
uBid.com
      Holdings, Inc.

    8725
      W.
      Higgins Road

    Suite
      900

    Chicago,
      Illinois 60631

    

    If
      to the
      Executive: 
Glenn
      R.
      Weisberger

    uBid.com
      Holdings, Inc.

    8725
      W.
      Higgins Road

    Suite
      900

    Chicago,
      Illinois 60631

    

    17.  Miscellaneous.

     

    (a)  Telephones,
      stationery, postage, e-mail, the internet and other resources made available
      to
      the Executive by the Company, are solely for the furtherance of the Company’s
      business.

     

    (b)  All
      issues and disputes concerning, relating to or arising out of this Agreement
      and
      from the Executive’s employment by the Company, including, without limitation,
      the construction and interpretation of this Agreement, shall be governed by
      and
      construed in accordance with the internal laws of the State of Illinois, without
      giving effect to that State’s principles of conflicts of law. The Executive
      hereby consents to jurisdiction in the courts of Illinois.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  The
      Parties agree that Sections 12, 13, 14 and 15 of this Agreement, and those
      provisions of this Agreement necessary for the enforcement of such Sections,
      shall survive termination of this Agreement and termination of Executive’s
      employment for any reason. 

     

    (d)  The
      Parties agree that any provision of this Agreement deemed unenforceable or
      invalid may be reformed to permit enforcement of the objectionable provision
      to
      the fullest permissible extent. Any provision of this Agreement deemed
      unenforceable after modification shall be deemed stricken from this Agreement,
      with the remainder of the Agreement being given its full force and
      effect.

     

    (e)  The
      Company shall be entitled to equitable relief, including injunctive relief
      and
      specific performance as against the Executive, for the Executive’s threatened or
      actual breach of Sections 12, 13 and 14 of this Agreement, as money damages
      for
      a breach thereof would be incapable of precise estimation, uncertain, and an
      insufficient remedy for an actual or threatened breach of Sections 12, 13 and
      14
      of this Agreement. If
      the
      Company prevails against Executive in a legal action for violation of Section
      12, 13 and/or 14 of this Agreement, the
      Company shall be entitled to collect from Executive any attorneys’ fees and
      costs incurred by the Company in bringing any action to enforce the terms of
      this Agreement, as well as any attorneys’ fees and costs incurred by the Company
      for the collection of any judgments in the Company’s favor arising out of
      Executive’s violation(s). The
      Parties agree that any pursuit of equitable relief in respect of Sections 12,
      13
      and 14 of this Agreement shall have no effect whatsoever regarding the continued
      viability and enforceability of Section 15 of this Agreement. 

     

    (f)  Any
      waiver or inaction by the Company or the Executive for any breach of this
      Agreement shall not be deemed a waiver of any subsequent breach of this
      Agreement.

     

    (g)  The
      Parties independently have made all inquiries regarding the qualifications
      and
      business affairs of the other which either party deems necessary. The Executive
      affirms that he fully understands this Agreement’s meaning and legally binding
      effect. Each party has participated fully and equally in the negotiation and
      drafting of this Agreement. 

     

    (h)  The
      Executive’s obligations under this Agreement are personal in nature and may not
      be assigned by the Executive to any other person or entity. Executive
      consents to and the Company shall have the right to assign this Agreement to its
      successors or assigns, and this
      Agreement shall be enforceable by the
      Company
      and its
      parents, affiliates, successors and assigns.

     

    (i)  This
      instrument constitutes the entire Agreement between the Parties regarding its
      subject matter. When signed by all Parties, this Agreement supersedes and
      nullifies all prior or contemporaneous conversations, negotiations, or
      agreements, oral and written, regarding the subject matter of this Agreement.
      In
      any future construction of this Agreement, this Agreement should be given its
      plain meaning. This Agreement may be amended only by a writing signed by the
      Parties. Notwithstanding
      the foregoing or anything in this Agreement to the contrary, the Company
      expressly reserves the right to amend this Agreement without Executive’s consent
      to the extent necessary to comply with Code Section 409A, as it may be amended
      from time to time, and the regulations, notices and other guidance of general
      applicability issued thereunder. 

     

    (j)  This
      Agreement may be executed in counterparts, a counterpart transmitted via
      facsimile, and all executed counterparts, when taken together, shall constitute
      sufficient proof of the Parties’ entry into this Agreement. The Parties agree to
      execute any further or future documents which may be necessary to allow the
      full
      performance of this Agreement. This Agreement contains headings for ease of
      reference. The headings have no independent meaning.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THE
      EXECUTIVE STATES THAT HE HAS FREELY AND VOLUNTARILY ENTERED INTO THIS AGREEMENT
      AND THAT HE HAS READ AND UNDERSTOOD EACH AND EVERY PROVISION THEREOF. THIS
      AGREEMENT IS EFFECTIVE UPON THE EXECUTION OF THIS AGREEMENT BY BOTH
      PARTIES.

     

    

    

    UNDERSTOOD,
      AGREED, AND ACCEPTED:

     

    
      	EXECUTIVE	 	COMPANY
	 	 	 	 
	 	 	 
	GLENN R. WEISBERGER	 	UBID.COM HOLDINGS,
              INC.
	 	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Glenn R. Weisberger	 	By:	/s/
              Jeffrey D. Hoffman
	 	 	Name:	Jeffrey
              D. Hoffman
	 	 	Title:	Chief
              Executive Officer 
	Date: May
              15, 2008	 	Date:	May
              15, 2008

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