Document:

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made as of this 1st day of September, 2017 (the “Effective Date”), by
Simulations Plus, Inc., a California corporation (the “Company”) and John DiBella, an individual (the “Employee”)
with reference to the following facts:

 

A.               
The Company desires to secure the services of the Employee as President of the Lancaster Division.

 

B.       The
Employee agrees to perform such services for the Company under the terms and conditions set forth in this Agreement.

In consideration of the mutual promises,
covenants and conditions set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, it is hereby agreed by and between the Company and the Employee as follows:

 

1.                 
Representations and Warranties. The Company represents and warrants that it is empowered under its Articles
or Certificate of Incorporation and Bylaws to enter into this Agreement. The Employee represents and warrants that he is under
no employment contract, bond, confidentiality agreement, or any other obligation that would violate or be in conflict with the
terms and conditions of this Agreement or encumber his performance of duties assigned to him by the Company. The Employee further
represents and warrants that he has not signed or committed to any employment or consultant duties or other obligations that would
divert his full attention from the duties assigned to him by this Agreement; provided, that the foregoing limitations shall not
be construed as prohibiting Employee from making personal investments or participating in business activities or community affairs
in such form or manner as will not prevent Employee from performing his duties and responsibilities hereunder or cause Employee
to violate the terms of Section 6 hereof.

 

2.                 
Employment and Duties. The Company hereby employs the Employee as President of the Lancaster Division
and the Employee hereby accepts such employment during the Term.

As President, the Employee shall have such
duties, authority and responsibility as shall be consistent with the Employee’s position and such other duties as assigned
by the CEO of the Company and/or the Board of Directors of the Company (the “Board of Directors”).

 

3.                 
Term. Subject to the provisions of Section 5, the term of this Agreement shall commence on September 1,
2017 for a duration of two (2) years and end on August 31, 2019 (“Term”).

 

4.                 
Compensation. In full and complete consideration for the employment of Employee hereunder, each and all
of the services to be rendered to the Company by the Employee, and each and all of the representations, warranties, covenants,
agreements and promises undertaken by the Employee pursuant to this Agreement, the Employee shall be entitled to receive compensation
as follows:

 

4.1             
Base Salary. The Employee shall receive from the Company a base salary of two hundred thirty thousand dollars
($230,000) per year, payable in equal, monthly installments. From each payment of Base Salary the Company will withhold and pay
to the proper governmental authorities any and all amounts required by law to be withheld for federal income tax, state income
tax, federal Social Security tax, state disability insurance premiums, and any and all other amounts required by law to be withheld
from the Employee's salary.

 

4.2             
Stock Options. The Employee shall be eligible to receive a grant of stock options under the 2017 Equity Incentive
Plan, as determined by the Board of Directors.

 

4.3             
Performance Bonus. For each fiscal year during the Term, the Employee shall be eligible to receive a performance
bonus in an amount not to exceed fifteen percent (15%) of the Employee’s salary, not to exceed $34,500 at the end of each
calendar year. The specific amount of the performance bonus shall be determined by the Compensation Committee of the Board of Directors,
based on the financial performance and achievements of the Company for the previous fiscal year. Employee must be employed by the
Company on the last date of the calendar year to be eligible for the bonus related to the previous fiscal year.

 

 

 

 

 

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4.4             
Benefits. The Company shall provide to the Employee at the sole cost to the Company, and the Employee shall
be entitled to receive from the Company, such health insurance and other benefits which are appropriate to the office and position
of Employee, adequate to the performance of his duties and not inconsistent with that which the Company customarily provides at
the time to their other management employees. The Employee's right to vacation and sick leave shall be determined in accordance
with the policies of the Company as may be in effect from time to time and as are approved by the Board of Directors. Employee
shall have the right to reimbursement of customary, ordinary and necessary business expenses, including travel, incurred in connection
with the rendering of services and performance of the functions required hereunder in accordance with the policies of the Company
as may be in effect from time to time and as are approved by the Company’s Board of Directors. Such expenses are reimbursable
only upon presentation by Employee of appropriate documentation pursuant to the policies adopted by the Company’s Board of
Directors.

 

5.                 
Termination of Employment.

 

5.1             
Expiration of the Term of Agreement. This Agreement shall be automatically terminated upon the expiration
of the Term, or as sooner agreed to by both the Employee and the Company in writing in the event this Agreement is superseded by
a new agreement. Upon such termination, the Company shall have no further liability to the Employee for any payment, compensation
or benefit whatsoever under this Agreement except with respect to (a) the Employee's salary and benefits through the effective
date of the Employee's termination, and (b) such other compensation or benefits (if any) which, by the terms of the applicable
plan or policy, is payable to the Employee after termination of employment.

 

5.2             
By Death. This Agreement shall be terminated upon the death of the Employee. The Company's total liability
in such event shall be limited to payment of (a) the Employee's salary and benefits through the date of the Employee's death, and
(b) such other compensation or benefits (if any) which, by the terms of the applicable plan or policy, is payable after the Employee's
death.

 

5.3             
By Permanent Disability. Employee’s employment may be terminated due to his permanent disability. A
permanent disability will exist when the Company has determined that Employee suffers from a condition of mind or body that indefinitely
prevents him from further performance of his essential duties, with or without reasonable accommodation. The Company’s total
liability in such event shall be limited to payment of the Employee’s salary and benefits through the effective date of termination
upon permanent disability.

 

5.4             
For Cause. The Company reserves the right to terminate this Agreement immediately, at any time, if, in the
reasonable opinion of the Company’s Board of Directors: the Employee fails or refuses to faithfully and diligently perform
the usual and customary duties of his employment which failure or refusal is not cured within thirty (30) days after written notice
thereof is given to Employee; commits any material act of dishonesty, fraud, misrepresentation, or other act of moral turpitude;
is guilty of gross carelessness or misconduct; fails to obey the lawful direction of the Company’s Board of Directors; or
acts in any way that has a direct, substantial and adverse effect on the Company’s reputation. The Company’s total
liability to the Employee in the event of termination of the Employee's employment under this paragraph shall be limited to the
payment of the Employee's salary and benefits through the effective date of termination.

 

5.5             
Without Cause. The Company reserves the right to terminate this Agreement without cause for any reason whatsoever
upon thirty (30) days' written notice to the Employee. Upon termination under this subsection, the Employee shall receive payment
of an amount equal to twelve (12) months of the Employee's base salary or the Employee's base salary for the remaining term of
this Agreement, whichever is greater, so long as he signs a release of all claims against the Company on a release form provided
by the Company to him at that time. Other than payment of the amount as described in this paragraph, the Company shall have no
further obligation to pay the Employee any other compensation or benefits whatsoever. The Employee hereby agrees that the Company
may dismiss him under this Section 5.5 without regard (i) to any general or specific policies (whether written or oral) of the
Company relating to the employment or termination of its employees, or (ii) to any statements made to the Employee, whether made
orally or contained in any document, pertaining to the Employee's relationship with the Company.

 

 

 

 

 

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5.6             
Mutual Consent. This Agreement shall be terminated upon mutual written consent of the Company and the Employee.
The Company’s total liability to the Employee in the event of termination of the Employee's employment under this Section
5.6 shall be limited to the payment of

 

(a)              
The Employee's salary and benefits through the effective date of termination; and

 

(b)              
such other compensation or benefits (if any) which, by the terms of the applicable plan or policy, is payable to
the Employee after termination of employment, except as otherwise agreed by the parties in writing.

 

5.7             
Termination of Offices and Board. Upon termination of employment for any reason whatsoever, the Employee shall
be deemed to have resigned from all offices, including the Board of Directors then held with the Company, if any.

 

6.                 
Restrictions on Use or Disclosure of Confidential Matters, Proprietary Information and Trade Secrets.

 

6.1             
During the Term, the Employee may be dealing with trade secrets of the Company, including without limitation, customer
lists, client contacts, financial information, inventions and processes, all of a confidential nature that are the Company’s
property and are used in the course of the Company’s business. The Employee will not disclose to anyone, directly or indirectly,
any of such trade secrets or use them other than as necessary in the course of his duties with the Company. All documents that
the Employee prepares, or confidential information that might be given to him or that Employee himself might create in the course
of his employment by the Company, are the exclusive property of the Company. During the Term and at any time thereafter, the Employee
shall not publish, communicate, divulge, disclose or use any of such information which has been reasonably designated by the Company
as proprietary or confidential or which from the surrounding circumstances the Employee knows, or has good reason to know, or should
reasonably know, ought to be treated by the Employee as proprietary or confidential without the prior written consent of the Company,
which consent may not be unreasonably withheld by the Company.

 

6.2             
In the course of his employment for the Company, Employee will develop a personal relationship with the Company’s
customers and knowledge of those customers’ affairs and requirements, which may constitute the Company’s only contact
with such customers. The Employee consequently agrees that it is reasonable and necessary for the protection of the goodwill and
business of the Company that the Employee make the covenants contained herein. Accordingly, the Employee agrees that while he is
in the Company’s employ, he will not directly or indirectly:

 

(a)              attempt
in any manner, to solicit from any customer (except on behalf of the Company’s) business of the type performed by the Company
or to persuade any customer of the Company to cease to do business or reduce the amount of business which any such customer has
customarily done or contemplates doing with the Company, whether or not the relationship with the Company and such customer was
originally established in whole or in part through the Employee's efforts; or

 

(b)              engage in any business as, or own an interest in, directly or indirectly, any individual proprietorship, partnership,
corporation, joint venture, trust or any other form of business entity if such business form or entity is engaged in the business
in which the Company is engaged;

 

(c)              render any services of the type rendered by the Company to or for any customer of the Company;

 

(d)              employ
or attempt to employ or assist anyone else to employ any person who is then or at any time during the preceding year in the Company’s
employ.

 

6.3             
For a one (1) year period after the termination of this Agreement for any reason, Employee shall not, directly or
indirectly, ask or encourage any employee(s) of the Company to leave their employment with the Company or solicit any employee(s)
of the Company for employment elsewhere. The Employee further agrees that he shall make any subsequent employer aware of this non-solicitation
obligation.

 

6.4             
This entire Section 6 shall survive termination of this Agreement.

 

 

 

 

 

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7.                 
The Company’s Property.

 

7.1             
Any patents, inventions, discoveries, applications or processes, software and computer programs devised, planned,
applied, created, discovered or invented by the Employee in the course of his employment by the Company and which pertain to any
aspect of the business of the Company, or their respective subsidiaries, affiliates or customers, shall be the sole and exclusive
property of the Company, and the Employee shall make prompt report thereof to the Company and promptly execute any and all documents
reasonably requested to assure the Company the full and complete ownership thereof.

 

7.2             
All records, files, lists, drawings, documents, equipment and similar items relating to the Company’s business
which the Employee shall prepare or receive from the Company in the course of his employment by the Company shall remain the Company’s
sole and exclusive property. Upon termination of this Agreement the Employee shall return promptly to the Company all property
of the Company in his possession and the Employee represents and warrants that he will not copy, or cause to be copied, printed,
summarized or compiled, any software, documents or other materials originating with and/or belonging to the Company, including,
without limitation, documents or other materials created by the Employee for, or on behalf of, the Company. The Employee further
represents and warrants that he will not retain in his possession any such software, documents or other materials in machine or
human readable form.

 

7.3             
This Section 7 shall survive termination of this Agreement.

 

8.                 
Outside Activities. During the Term, the Employee shall not, directly or indirectly, either as an officer,
director, employee, representative, principal, partner, shareholder, employee, agent or in any other capacity, engage or assist
any third party in engaging in any business competitive with the business of the Company, without the prior written consent of
the Company, which consent may be withheld by the Company in their sole and absolute discretion. Following his employment with
the Company, the Employee shall not engage in unfair competition with the Company, aid others in any unfair competition with the
Company, in any way breach the confidence that the Company has placed in the Employee or misappropriate any proprietary information
of the Company.

 

9.                 
Reports. The Employee, when directed, shall provide written reports to the Company with respect to the
services provided hereunder.

 

10.             
Strict Loyalty. The Employee hereby covenants and agrees to avoid all circumstances and actions that reasonably
would place the Employee in a position of divided loyalty with respect to his obligations under this Agreement.

 

11.             
Assignment. This Agreement may not be assigned to another party by the Employee without the prior written
consent of the Company, which consent may be withheld by the Company, in their sole and absolute discretion.

 

12.             
Arbitration. In the event of any dispute between the Company and the Employee concerning any aspect of
the employment relationship, including any disputes relating to its termination, all such disputes shall be resolved by binding
arbitration before a single neutral arbitrator pursuant to the following terms. This provision shall supersede any prior arbitration
agreement, policy or understanding between the parties. The parties intend to revoke any prior arbitration agreement.

 

12.1         
Claims Covered by the Agreement. The Employee and the Company mutually consent to the resolution by final
and binding arbitration of all claims or controversies (“claims”) that the Company may have against the Employee
or that the Employee may have against the Company or against its officers, directors, partners, employees, agents, pension or benefit
plans, administrators, or fiduciaries, franchisors, or any parent, subsidiary or affiliated companies or corporation (collectively
referred to for purposes of this Section 12 as “Company’s Parties”), relating to, resulting from, or in
any way arising out of Employee’s employment relationship with Company and/or the termination of Employee’s employment
relationship with Company, to the extent permitted by law. The claims covered by this Agreement include, but are not limited to,
claims for wages or other compensation due; claims for breach of any contract or covenant (express or implied); tort claims; claims
for discrimination and harassment (including, but not limited to, race, sex, religion, national origin, age, marital status or
medical condition, disability, or sexual orientation); claims for benefits (except where an employee benefit or pension plan specifies
claims procedures different from the ones described in this Section 12); claims for breach of any duties or obligations; and claims
for violation of any public policy, federal, state or other governmental law, statute, regulation or ordinance, except claims excluded
in the following section.

 

12.2         
Claims Not Covered by the Agreement. Claims the Employee may have for workers’ compensation (excluding
discrimination claims under workers’ compensation statutes) or unemployment compensation benefits are not covered by this
Arbitration section.

 

 

 

 

 

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12.3         
Required Notice of Claims and Statute of Limitations. Arbitration may be initiated by the Employee by serving
or mailing a written notice to the Chairman of the Board of the Company. Arbitration may be initiated by the Company’s Parties
by serving or mailing a written notice to the Employee at his last known address. The notice shall identify and describe the nature
of all claims asserted and the facts upon which such claims are based. The written notice shall be served or mailed within the
applicable statute of limitations period set forth by federal or state law.

 

12.4         
Arbitration Procedures.

 

(a)              
After demand for arbitration has been made by serving written notice under the terms of Section 12.3 of this Agreement,
the party demanding arbitration shall file a demand for arbitration with the office of Judicial Arbitration and Mediation Services
(“JAMS”) located in Los Angeles, California. The arbitrator shall be selected from the JAMS panel and the arbitration
shall be conducted pursuant to JAMS policies and procedures. All rules governing the arbitration shall be the rules as set forth
by JAMS. If the dispute is employment-related, the dispute shall be governed by JAMS’ then-current version of the national
rules for the resolution of employment disputes. JAMS’ then-applicable rules governing the arbitration may be obtained from
JAMS’ website which currently is www.jamsadr.com.

 

(b)              
The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of California, or federal
law, or both, as applicable to the claim(s) asserted. The arbitrator shall have exclusive authority to resolve any dispute relating
to the interpretation, applicability, enforceability or formation of this Agreement, including but not limited to any claim that
all or any part of this Agreement is void or voidable.

 

(c)              
Either party may file a motion for summary judgment with the arbitrator. The arbitrator is entitled to resolve some
or all of the asserted claims through such a motion. The standards to be applied by the arbitrator in ruling on a motion for summary
judgment shall be the applicable laws as specified in Section 12.4(b) of this Agreement.

 

(d)              
Discovery shall be allowed and conducted pursuant to the then-applicable arbitration rules of JAMS, provided that
the parties shall be entitled to discovery sufficient to adequately arbitrate their claims and defenses. The arbitrator is authorized
to rule on discovery motions brought under the applicable discovery rules.

 

12.5         
Arbitration Decision. The arbitrator’s decision will be final and binding. The arbitrator shall issue
a written arbitration decision revealing the essential findings and conclusions upon which the decision and/or award is based.
A party’s right to appeal the decision is limited to grounds provided under applicable federal or California law.

 

12.6         
Application for Emergency Injunctive and/or Other Equitable Relief. Claims by the Company or Employee for
emergency injunctive and/or other equitable relief relating to unfair competition and/or the use and/or unauthorized disclosure
of trade secrets or confidential information and/or a breach of the provisions of Sections 6, 7, and 8 of this Agreement shall
be submitted to JAMS for emergency treatment. The parties agree that the JAMS administrator may select a neutral hearing officer
(subject to conflicts) to hear the emergency request only. The hearing officer should be experienced in considering requests for
emergency injunctive and/or other equitable relief. The hearing officer shall conform his or her consideration and ruling with
the applicable legal standards as if this matter were heard in a court of law in the applicable jurisdiction for such a dispute.

 

12.7         
Place of Arbitration. The arbitration will be at a mutually convenient location in Los Angeles, California.
If the parties cannot agree upon a location, then the arbitration will be held at a JAMS’ office in Los Angeles.

 

12.8         
Representation, Fees and Costs. Each party may be represented by an attorney or other representative selected
by the party. Each party shall be responsible for its own attorneys’ or representative’s fees. However, if any party
prevails on a statutory claim that affords the prevailing party’s attorneys’ fees, or if there is a written agreement
providing for fees, the arbitrator may award reasonable fees to the prevailing party. The Company shall be responsible for the
arbitrator’s fees and costs to the extent they exceed any fee or cost that the Employee would be required to bear if the
action were brought in court.

 

12.9         
Waiver Of Jury Trial/Exclusive Remedy. The Employee and the Company knowingly and voluntarily waive any constitutional
right to have any dispute between them decided by a court of law and/or by a jury in court.

 

 

 

 

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13.             
The Company’s Bylaws, Directions, Policies, Practices, Rules, Regulations and Procedures. The Employee
agrees to become and remain thoroughly familiar with each and all of the Company’s bylaws, directions, policies, practices,
rules, regulations and procedures that relate to the employment and/or to any of Employee's duties and/or responsibilities as an
employee of the Company and to abide fully and by each and all of such bylaws, directions, policies, practices, rules, regulations
and procedures. During the Term, the Employee shall be fully bound by and employed pursuant to each and all of the Company’s
bylaws, directions, policies, practices, rules, regulations and procedures as now in effect or as may be implemented, modified
or otherwise put into effect by the Company during the term of employment, regardless of whether such bylaws, directions, policies,
practices, rules, regulations and procedures are oral or are set forth in any manual, handbook or other document, and it is solely
the responsibility of Employee to become and remain fully aware of and familiar with each and all such directions, policies, practices,
rules, regulations and/or procedures. In the event of any conflict between any provision of this Agreement and any provision of
the Company’s directions, policies, practices, rules, regulations and/or procedures, the provisions of this Agreement govern
for any and all purposes whatsoever.

 

14.             
Indemnification. The Company shall indemnify and hold the Employee harmless from any and all claims, demands,
judgments, liens, subrogation or costs incurred by the Employee with respect to any shareholder derivative action or other claims
or suits against the Company and/or their respective Boards of Directors by individuals, firms or entities not a party to this
Agreement to the maximum extent permitted under California law.

 

15.             
General.

 

15.1         
Further Documents. Each party shall execute and deliver all further instruments, documents and papers, and
shall perform any and all acts necessary reasonably requested by the other party, to give full force and effect to all of the terms
and provisions of this Agreement.

 

15.2         
Successors and Assigns. Except where expressly provided to the contrary, this Agreement, and all provisions
hereof, shall inure to the benefit of and be binding upon the parties hereto, their successors in interest, assigns, administrators,
executors, heirs and devises.

 

15.3         
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as
to be effective and valid under applicable law. If any provision of this Agreement, as applied to any party or to any circumstance,
shall be found by a court or arbitrator to be invalid or unenforceable under applicable law, such provision will be ineffective
only to the extent of such invalidity or unenforceability, without invalidating or rendering unenforceable the remainder of such
provision and any such invalidity or unenforceability shall in no way affect any other provision of this Agreement, the application
of any provision in any other circumstance or the validity or enforceability of this Agreement.

 

15.4         
Notices. All notices or demands shall be in writing and shall be served personally, telegraphically or by
express or certified mail. Service shall be deemed conclusively made at the time of service if personally served, 24 hours after
deposit thereof in the United States mail properly addressed and postage prepaid, return receipt requested, if served by express
Mail, and five days after deposit thereof in the United States mail, properly addressed and postage prepaid, return receipt requested,
if served by certified mail. Any notice or demand to the Company shall be given to:

 

Simulations Plus, Inc.

42505 10th Street West

Lancaster, CA 93534-7059

Attention: Compensation Committee

 

and any notice or demand to the Employee
shall be given to:

 

John DiBella

17000 Westbury
Drive

Granada Hills,
CA 91344

 

Any party may, by virtue of a written notice
in compliance with this Section, alter or change the address or the identity of the person to whom any notice, or copy thereof,
is to be sent.

 

15.5         
Waiver. A waiver by any party of any of the terms and conditions of this Agreement in any one instance shall
not be deemed or construed to be a waiver of the term or condition for the future, or of any subsequent breach thereof or of any
other term or condition thereof. Any party may waive any term, provision or condition included for the benefit of that party. Any
and all waivers shall be in writing.

 

 

 

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15.6         
Construction. This Agreement shall be governed by and construed in accordance with the laws of the State of
California applicable to contracts entered into and fully to be performed therein without regard to its principles of choice of
law or conflicts of law. In all matters of interpretation, whenever necessary to give effect to any provision of this Agreement,
each gender shall include the others, the singular shall include the plural, the plural shall include the singular and the terms
“and” and “or” may be used interchangeably as the context so requires or implies. The title of the sections
of this Agreement are for convenience only and shall not in any way affect the interpretation of any provision or condition of
this Agreement. All remedies, rights, undertakings, obligations and agreements contained in this Agreement shall be cumulative
and none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement of any party.

 

15.7         
Entire Understanding. This Agreement contains the entire understanding of the parties hereto relating to the
subject matter contained herein and supersedes all prior and collateral agreements, understandings, statements and negotiation
of the parties. Each party acknowledges that no representations, inducements or promises, oral or written, with reference to the
subject matter hereof have been made other than as expressly set forth herein. This Agreement cannot be changed, rescinded or terminated
orally.

 

15.8         
Third Party Rights. The parties hereto do not intend to confer any rights or remedies upon any person other
than the parties hereto and those referred to in Section 15.2 hereof so long as any such assignment by Employee was approved by
the Company as provided in Section 11 hereof.

 

15.9         
Attorneys' Fees. In the event of any litigation between the parties respecting or arising out of this Agreement,
the prevailing party shall be entitled to recover reasonable legal fees and costs, whether or not the litigation proceeds to final
judgment or determination.

 

15.10     
Place of Litigation. Any litigation between the parties shall occur in the County of Los Angeles, California.

 

15.11     
Counterparts. This Agreement may be executed in counterparts which, taken together, shall constitute the whole
of the agreement between the parties.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

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

 

	
        Company: 

        SIMULATIONS PLUS, INC.

         

        

        

        

        By:  /s/ Walter S Woltosz                      

Walter S. Woltosz, Chairman and CEO

         

        Date: August 31, 2017
	
        Employee:

        John DiBella

         

         

        

        /s/ John DiBella                                    

        John DiBella

         

        Date: August 31, 2017

	 	 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Employment Agreement]

    	 	8Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is made
as of this 1st day of September, 2017, by and between Simulations Plus, Inc., a California corporation (the “Company”)
and Walter S. Woltosz, an individual (the “Employee”) with reference to the following facts:

 

A.       The Company desires
to secure the services of the Employee as Chief Executive Officer.

 

B.       The Employee agrees
to perform such services for the Company under the terms and conditions set forth in this Agreement.

 

In consideration of the mutual promises, covenants, and conditions
set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it
is hereby agreed by and between the Company and the Employee as follows:

 

1.       Representations
and Warranties.

 

The Company represents and warrants that it is empowered under
its Articles of Incorporation and Bylaws to enter into this Agreement. The Employee represents and warrants that he is under no
employment contract, bond, confidentiality agreement, or any other obligation that would violate or be in conflict with the terms
and conditions of this Agreement or encumber his performance of duties assigned to him by the Company. The Employee further represents
and warrants that he has not signed or committed to any employment or consultant duties or other obligations that would divert
his attention from the duties assigned to him by the Company by this Agreement at a minimum level of 60% of full-time employment.

 

2.       Employment and Duties.

 

The Company employs the Employee as Chief Executive Officer
and the Employee hereby accepts such employment (the “Employment”). The Employee agrees that he shall devote a minimum
of 60% of his productive time, ability, attention, energy, knowledge, and skill solely and exclusively to performing all duties
as Chief Executive Officer of the Company as assigned or delegated to him by the directors and executive officers of the Company.

 

3.       Term.

 

Subject to the provisions of Section 5, the term of this Agreement
shall extend until August 31, 2018, commencing on September 1, 2017.

 

4. Compensation.

 

In full and complete consideration for the Employment, each
and all of the services to be rendered to the Company by the Employee, and each and all of the representations, warranties, covenants,
agreements, and promises undertaken by the Employee pursuant to this Agreement, the Employee shall be entitled to receive compensation
as follows:

 

4.1.       Base Salary.
The Employee shall receive from the Company a base salary of one hundred eighty thousand dollars ($180,000.00) per year, payable
in equal monthly installments. From each said salary payment the Company will withhold and pay to the proper governmental authorities
any and all amounts required by law to be withheld for federal income tax, state income tax, federal Social Security tax, state
disability insurance premiums, and any and all other amounts required by law to be withheld from the Employee’s salary.

 

4.2.       Grant of Option.
The Employee shall be granted an option under the 2007 Stock Option Plan, exercisable for five (5) years, to purchase six (6) shares
of Common Stock for each one thousand dollars ($1,000) of net income before taxes that the Company earns at the end of each fiscal
year (up to a maximum of twelve thousand [12,000] options over the term of this Agreement) at an exercise price 10% over the market
value per share as of the date of grant. The maximum number of options under this grant shall be adjusted accordingly for any stock
split or reverse split after the date of this agreement. Option grants under this agreement shall be issued within ten days after
the filing of the annual report (10-K) for the fiscal year for which the option is granted.

 

 

 

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4.3       Performance
Bonus. The Employee shall be paid a Performance Bonus in an amount equal to five percent (5%) of the Company’s net income
before taxes of the previous fiscal year, not to exceed $36,000.

 

4.4.       Benefits.
Employer shall provide to Employee at the cost to Employer of 60% of actual costs, and Employee shall be entitled to receive from
Employer, such health insurance and other benefits which are appropriate to the office and position of Employee, adequate to the
performance of his duties and not inconsistent with that which Employer customarily provides at the time to its other management
employees. Employee’s right to paid time off (“PTO”) shall be determined in accordance with the policies of the
Company as may be in effect from time to time and as are approved by the Company’s Board of Directors. Employee shall have
the right to reimbursement of customary, ordinary, and necessary business expenses incurred in connection with the rendering of
services and performance of the functions required hereunder in accordance with the policies of the Company as may be in effect
from time to time and as are approved by the Company’s Board of Directors. Such expenses are reimbursable only upon presentation
by Employee of appropriate documentation pursuant to the policies adopted by the Company’s Board of Directors.

 

5.       Termination of Employment.

 

5.1.       Expiration
of the Term of Agreement. This Agreement shall be automatically terminated upon the expiration of the term of the agreement
as described in paragraph 3 of this Agreement, or as sooner agreed by both Employee and Company in the event this Agreement is
superseded by a new agreement. Upon such termination, the Company shall have no further liability to the Employee for any payment,
compensation, or benefit whatsoever under this Agreement.

 

5.2.       By Death.
This Agreement shall be terminated upon the death of the Employee. The Company’s total liability in such event shall be limited
to payment of the Employee’s salary and benefits through the date of the Employee’s death.

 

5.3.       By Disability.
If, in the sole opinion of the Company’s Board of Directors, the Employee shall be prevented from properly performing his
or her duties hereunder by reason of any physical or mental incapacity for a period of more than 90 days in the aggregate in any
twelve-month period, then, to the extent permitted by law, his or her employment with the Company shall terminate. The Company’s
total liability in such event shall be limited to payment of the Employee’s salary and benefits through the effective date
of termination upon disability.

 

5.4.       For Cause.
The Company reserves the right to terminate this Agreement immediately, at any time, if, in the reasonable opinion of the Company’s
Board of Directors: the Employee breaches or neglects the duties which he or she is required to perform under the terms of this
Agreement; commits any material act of dishonesty, fraud, misrepresentation, or other act of moral turpitude; is guilty of gross
carelessness or misconduct; fails to obey the lawful direction of the Company’s Board of Directors; or acts in any way that
has a direct, substantial, and adverse effect on the Company’s reputation. The Company’s total liability to the Employee
in the event of termination of the Employee’s employment under this paragraph shall be limited to the payment of the Employee’s
salary and benefits through the effective date of termination.

 

5.5.       Without Cause.
The Company reserves the right to terminate this Agreement without cause for any reason whatsoever upon thirty (30) days’
written notice to the Employee. Upon termination under this subsection, the Employee shall receive payment of an amount equal to
twelve (12) months of the Employee’s base salary or the Employee’s base salary for the remaining term of this Agreement,
whichever is greater. Other than payment of the amount as described in this paragraph, the Company shall have no further obligation
to pay the Employee any other compensation or benefits whatsoever. The Employee hereby agrees that the Company may dismiss him
or her under this paragraph 5.5 without regard (i) to any general or specific policies (whether written or oral) of the Company
relating to the employment or termination of its employees, or (ii) to any statements made to the Employee, whether made orally
or contained in any document, pertaining to the Employee’s relationship with the Company.

 

5.6.       Mutual Consent.
This Agreement shall be terminated upon mutual written consent of the Company and the Employee. The Company’s total liability
to the Employee in the event of termination of the Employee’s employment under this paragraph shall be limited to the payment
of the Employee’s compensation through the effective date of termination.

 

 

 

 

    	 	2	 

     

    

 

5.7.       Termination
of Obligations. Upon termination of employment for any reason whatsoever, the Employee shall be deemed to have resigned from
all offices and directorships then held with the Company. Termination of employment shall have no effect on the Employee’s
position(s) on the Company’s board of directors. The board of directors and shareholders will determine the Employee’s
eligibility to continue to serve as a member of the board.

 

6.       Restrictions on
Use or Disclosure of Confidential Matters, Proprietary Information, and Trade Secrets.

 

6.1.       During the term
of this Agreement, the Employee may be dealing with trade secrets of the Company, including without limitation, customer lists,
client contacts, financial information, inventions, and processes, all of a confidential nature that are the Company’s property
and are used in the course of the Company’s business. The Employee will not disclose to anyone, directly or indirectly, any
of such trade secrets or use them other than as necessary in the course of his duties with the Company. All documents that the
Employee prepares, or confidential information that might be given to him or that Employee himself might create in the course of
his consultation with the Company, are the exclusive property of the Company. During the term of this Agreement and at any time
thereafter, the Employee shall not publish, communicate, divulge, disclose, or use any of such information which has been reasonably
designated by the Company as proprietary or confidential, or which from the surrounding circumstances the Employee knows, or has
good reason to know, or should reasonably know, ought to be treated by the Employee as proprietary or confidential, without the
prior written consent of the Company, which consent may not be unreasonably withheld by the Company.

 

6.2.       In the course
of his employment for the Company, Employee will develop a personal relationship with the Company’s customers and knowledge
of those customers’ affairs and requirements, which may constitute the Company’s only contact with such customers.
Employee consequently agrees that it is reasonable and necessary for the protection of the goodwill and business of the Company
that Employee make the covenants contained herein. Accordingly, Employee agrees that while he is in the Company’s employ
and for a one (1) year period after the termination of such employment for any reason whatsoever, he will not directly or indirectly:

 

(a)       attempt
in any manner to solicit from any customer (except on behalf of the Company) business of the type performed by the Company or to
persuade any customer of the Company to cease to do business or reduce the amount of business which any such customer has customarily
done or contemplates doing with the Company, whether or not the relationship with the Company and such customer was originally
established in whole or in part through Employee’s efforts; or

 

(b)       engage
in any business as, or own an interest in, directly or indirectly, any individual proprietorship, partnership, corporation, joint
venture, trust, or any other form of business entity if such business form or entity is engaged in the business in which the Company
is engaged;

 

(c)       render
any services of the type rendered by the Company to or for any customer of the Company;

 

(d)       employ
or attempt to employ or assist anyone else to employ any person who is then or at any time during the preceding year in the Company’s
employ.

 

This entire Section 6 shall survive termination of this Agreement.

 

7.       Company Property.

 

7.1.       Any patents, inventions,
discoveries, applications or processes, software, and computer programs devised, planned, applied, created, discovered, or invented
by the Employee in the course of the engagement under this Agreement and which pertain to any aspect of the business of the Company,
or its subsidiaries, affiliates, or customers, shall be the sole and exclusive property of the Company, and the Employee shall
make prompt report thereof to the Company and promptly execute any and all documents reasonably requested to assure the Company
the full and complete ownership thereof.

 

7.2.       All records, files,
lists, drawings, documents, equipment, and similar items relating to the Company’s business which the Employee shall prepare
or receive from the Company shall remain the Company’s sole and exclusive property. Upon termination of this Agreement, the
Employee shall return promptly to the Company all property of the Company in his possession and the Employee represents and warrants
that he will not copy, or cause to be copied, printed, summarized, or compiled, any software, documents, or other materials originating
with and/or belonging to the Company, including, without limitation, documents or other materials created by the Employee for,
or on behalf of, the Company. The Employee further represents and warrants that he will not retain in his possession any such software,
documents, or other materials in machine or human-readable form.

 

 

 

 

    	 	3	 

     

    

 

7.3.       This Section 7
shall survive termination of this Agreement.

 

8.       Outside Activities.
During the term of this Agreement, the Employee shall devote sixty percent (60%) of his productive time, ability, and attention
to the business of the Company. During the term of this Agreement, the Employee shall not, directly or indirectly, either as an
officer, director, employee, representative, principal, partner, shareholder, employee, agent, or in any other capacity, engage
or assist any third party in engaging in any business competitive with the business of the Company, without the prior written consent
of the Company, which consent may be withheld by the Company in its sole and absolute discretion. Following his employment with
the Company, the Employee shall not engage in unfair competition with the Company, aid others in any unfair competition with the
Company, in any way breach the confidence that the Company has placed in the Employee, or misappropriate any proprietary information
of the Company.

 

9.       Reports.
The Employee, when directed, shall provide written reports to the Company with respect to the services provided hereunder.

 

10.       Strict Loyalty.
The Employee hereby covenants and agrees to avoid all circumstances and actions that reasonably would place the Employee in a position
of divided loyalty with respect to his obligations under this Agreement.

 

11.       Assignment.
This Agreement may not be assigned to another party by the Employee without the prior written consent of the Company, which consent
may be withheld by the Company in its sole and absolute discretion.

 

12.       Arbitration.
Except as otherwise provided herein in Section 15.11, any controversy between the Company and Employee in connection with this
Agreement, including, without limitation, any dispute or claim arising from the voluntary or involuntary termination hereof, shall
be settled by final and binding arbitration in Los Angeles, in accordance with the Commercial Arbitration Rules of the American
Arbitration Association. Judgment of such award may be entered in a court of competent jurisdiction. Employee and the Company shall
each pay the fees of his or its own attorneys, the expenses of his or its witnesses, and all other fees and expenses connected
with presenting his or its case at arbitration. All other costs of the arbitration, including, without limitation, the costs of
any record or transcript of the arbitration proceedings, administrative fees, the fee for the arbitrator, and all other fees and
costs shall be borne equally by the Company and Employee.

 

13.       Company Bylaws,
Directions, Policies, Practices, Rules, Regulations, and Procedures. Employee agrees to become and remain thoroughly familiar
with each and all of the Company’s bylaws, directions, policies, practices, rules, regulations, and procedures that relate
to the employment and/or to any of Employee’s duties and/or responsibilities as an employee of the Company, and to abide
fully by each and all of such bylaws, directions, policies, practices, rules, regulations, and procedures. During the term of employment,
Employee shall be fully bound by and employed pursuant to each and all of the Company’s bylaws, directions, policies, practices,
rules, regulations, and procedures as now in effect or as may be implemented, modified, or otherwise put into effect by the Company
during the term of employment, regardless of whether such bylaws, directions, policies, practices, rules, regulations, and procedures
are oral or are set forth in any manual, handbook, or other document, and it is solely the responsibility of Employee to become
and remain fully aware of and familiar with each and all such directions, policies, practices, rules, regulations, and/or procedures.
In the event of any conflict between any provision of this Agreement and any provision of the Company’s directions, policies,
practices, rules, regulations, and/or procedures, the provisions of this Agreement govern for any and all purposes whatsoever.

 

14.       Indemnification.
The Company shall indemnify and hold Employee harmless from any and all claims, demands, judgments, liens, subrogation, or costs
incurred by Employee with respect to any shareholder derivative action or other claims or suits against the Company and/or its
Board of Directors by individuals, firms, or entities not a party to this Agreement to the maximum extent permitted under California
law.

 

15. General.

 

15.1.       Further Documents.
Each party shall execute and deliver all further instruments, documents, and papers, and shall perform any and all acts necessary
reasonably requested by the other party, to give full force and effect to all of the terms and provisions of this Agreement.

 

 

 

    	 	4	 

     

    

 

15.2.       Successors
and Assigns. Except where expressly provided to the contrary, this Agreement, and all provisions hereof, shall inure to the
benefit of and be binding upon the parties hereto, their successors in interest, assigns, administrators, executors, heirs, and
devises.

 

15.3.       Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law. If any provision of this Agreement, as applied to any party or to any circumstance, shall be found by a court or arbitrator
to be invalid or unenforceable under applicable law, such provision will be ineffective only to the extent of such invalidity or
unenforceability, without invalidating or rendering unenforceable the remainder of such provision and any such invalidity or unenforceability
shall in no way affect any other provision of this Agreement, the application of any provision in any other circumstance, or the
validity or enforceability of this Agreement.

 

15.4.       Notices.
All notices or demands shall be in writing and shall be served personally, telegraphically, or by express or certified mail. Service
shall be deemed conclusively made at the time of service if personally served, at the time that the telegraphic agency confirms
to the sender deliver thereof to the addressee if served telegraphically, 24 hours after deposit thereof in the United States mail
properly addressed and postage prepaid, return receipt requested, if served by express Mail, and five days after deposit thereof
in the United States mail, properly addressed and postage prepaid, return receipt requested, if served by certified mail. Any notice
or demand to the Company shall be given to:

 

Simulations Plus, Inc.

42505 10th Street West

Lancaster, CA 93534-7059

(661) 723-7723 Telephone

(661) 723-5524 Facsimile

Attention: Compensation Committee

 

and any notice or demand to the Employee shall be given to:

 

Mr. Walter S. Woltosz

42505 10th Street West

Lancaster, CA 93534-7059

(661) 723-7723 Telephone

(661) 723-5524 Facsimile

 

and

 

2045 Winding Way

Auburn, AL 36830

 

Any party may, by virtue of a written notice in compliance with
this paragraph, alter or change the address or the identity of the person to whom any notice, or copy thereof, is to be sent.

 

15.5.       Waiver.
A waiver by any party of any of the terms and conditions of this Agreement in any one instance shall not be deemed or construed
to be a waiver of the term or condition for the future, or of any subsequent breach thereof, or of any other term or condition
thereof. Any party may waive any term, provision, or condition included for the benefit of that party. Any and all waivers shall
be in writing.

 

15.6.       Construction.
This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts
entered into and fully to be performed therein without regard to its principles of choice of law or conflicts of law. In all matters
of interpretation, whenever necessary to give effect to any provision of this Agreement, each gender shall include the others,
the singular shall include the plural, the plural shall include the singular, and the terms “and” and “or”
may be used interchangeably as the context so requires or implies. The title of the sections of this Agreement are for convenience
only and shall not in any way affect the interpretation of any provision or condition of this Agreement. All remedies, rights,
undertakings, obligations, and agreements contained in this Agreement shall be cumulative and none of them shall be in limitation
of any other remedy, right, undertaking, obligation, or agreement of any party.

 

 

 

    	 	5	 

     

    

 

15.7.       Entire Understanding.
This Agreement contains the entire understanding of the parties hereto relating to the subject matter contained herein and supersedes
all prior and collateral agreements, understandings, statements, and negotiation of the parties. Each party acknowledges that no
representations, inducements, or promises, oral or written, with reference to the subject matter hereof have been made other than
as expressly set forth herein. This Agreement cannot be changed, rescinded, or terminated orally.

 

15.8.       Third Party
Rights. The parties hereto do not intend to confer any rights or remedies upon any person other than the parties hereto and
those referred to in Section 15.2 hereof so long as any such assignment by Employee was approved by the Company as provided in
Section 11 hereof.

 

15.9.       Attorneys’
Fees. In the event of any litigation between the parties respecting or arising out of this Agreement, the prevailing party
shall be entitled to recover reasonable legal fees and costs, whether or not the litigation proceeds to final judgment or determination.

 

15.10.       Place of
Litigation. Any litigation between the parties shall occur in the County of Los Angeles, California.

 

15.11.       Injunctive
Relief. Since a breach of the provisions of Sections 6, 7, 8, and 10 of this Agreement cannot adequately be compensated by
monetary damages, the Company shall be entitled, in addition to any other right and remedy set forth in this Agreement or available
to it at law, in equity or otherwise, to seek and obtain from any court of competent jurisdiction immediate temporary, preliminary,
and permanent injunctive relief restraining such breach or threatened breach, without the posting of any bond or other security
therefor, against the Employee and against each and every other person, firm, company, joint venture, and/or other entity concerned
with and/or acting in concert with the Employee. Any such requirement of bond or other security is hereby expressly waived by the
Employee, and the Employee expressly acknowledges that in the absence of such waiver, a bond or other security may be required
by the court. The Employee hereby consents to the issuance of such injunction and expressly and knowingly waives any claim or defense
that any adequate remedy at law might exist for any such breach or threatened breach. The Employee agrees that the provisions of
Sections 6, 7, 8, and 10 of this Agreement are necessary and reasonable to protect the Company in the conduct of the business of
the Company.

 

15.12.       Counterparts.
This Agreement may be executed in counterparts which, taken together, shall constitute the whole of the agreement between the parties.

 

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

 

“Company”                  SIMULATIONS PLUS, INC.,

a California corporation

 

By: /s/ John
Kneisel                            

Title: Chief Financial Officer

Date: September 1, 2017

 

“Employee”              WALTER S. WOLTOSZ

 

By: /s/ Walter S. Woltosz                                   

Walter S. Woltosz

Date: 01 September, 2017                                    

 

Compensation Committee:

 

By: /s/ Daniel L. Weiner                                      

Dr. Daniel L. Weiner

Date: 01 September, 2017                                    

 

By: /s/ David L. Ralph                                         

Dr. David L. Ralph

Date: 01 September, 2017                                    

 

By: /s/ John Paglia                                               

Dr. John K. Paglia

Date: 01 September, 2017                                    

 

 

 

 

 

 

 

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