Document:

Exhibit 4.2

 

CONSULTING AGREEMENT

 

 This CONSULTING AGREEMENT
(“Agreement”), dated as of April 24, 2020, by and between APPLIED ENERGETICS, INC., a Delaware corporation, having
an address at 2480 W Ruthrauff Road, Suite 140 Q, Tucson, Arizona 85705 (the “Company”), TMC Financial Services, LLC
and Stephen McCommon, an individual having an address at _____________________________ (collectively, the “Consultant”).
The Company and Consultant are also referred to as either “party” or “parties” herein.

 

WITNESSETH:

 

WHEREAS the Company wishes
to avail itself of the Consultant’s knowledge and expertise and to retain his services as a consultant to the Company; and

 

WHEREAS, the Consultant has
agreed to serve as a Consultant to the Company on the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants, representations and warranties set forth herein, it is hereby agreed as follows:

 

1. Engagement.
The Company hereby engages the Consultant to perform, and Consultant agrees to perform, the services (“Services”) set
forth in the Statement of Work attached hereto as Exhibit A ( the “Statement of Work”).

 

2. Extent
of Services; Availability. The Consultant agrees to make himself available to perform the Services for the Company during the term
of this Agreement to the extent necessary to perform the Services. Consultant agrees to perform the Services to the best of his ability
in a diligent and conscientious manner, to devote appropriate time, energies and skill to those duties called for hereunder and to be
available as deemed necessary by mutual agreement of the parties during the term of this Agreement.

 

3. Compensation
and Reimbursement.

 

a. Cash
Compensation. As compensation for the Services, the Company shall pay to Consultant a fee of $100 for each hour engaged during the Term
of this Agreement (“Base Compensation”), beginning on the last day of the first month of the term. The first month
of service shall start effective as of April 1, 2020 (the “Effective Date”). The Base Compensation shall be payable
to TMC Financial Services, LLC.

 

b. The
Company shall reimburse Consultant for all necessary and appropriate travel and miscellaneous expenses incurred by Consultant on behalf
of the Company upon submission of documentary proof for such expenses and provided such expenses have been approved, either prior to or
after, by Company management. Consultant shall render invoices for expenses to the Company, in accordance with Company’s practices,
within a reasonable time after such expenses occurred.

 

     

     

    

 

 4. Further Considerations 

 

a. The
parties acknowledge that the Company previously issued to Consultant 2,000,000 shares of its common stock (the “Shares”)
as compensation for services. The Company believes it may have claims for the return or cancellation of some or all of the Shares. As
further consideration for Consultant’s performance of the Services, the Company agrees that Consultant shall be entitled to retain
the Shares, and the Company agrees that it will not challenge the initial issuance of the Shares to Consultant.

 

b. Notwithstanding
the foregoing, the parties agree that 667,000 of the Shares will be subject to a lock-up on their sale and shall be released from the
lock-up at a rate of 27,792 shares per month for the 24-month duration of this Agreement. Any time after the 24-month duration of this
agreement, any remaining locked-up shares shall be un-locked.

 

c. The
Company agrees that upon (a) the closing of a sale of the Company involving either a merger in which the Company is not the surviving
company; (b) the closing of a merger or sale of a controlling interest in the Company following which the acquiring entity owns in excess
of 50% of the Company’s outstanding equity; (c) the closing of a sale of all or substantially all of the assets of the Company;
(d) a change in control of the Company; or (e) termination of this agreement either (i) by the Company without cause, (ii) due to the
death or disability of Consultant under Section 9.c hereof, or (iii) by Consultant pursuant to Section 9.d hereof, any lock-up restriction
on the sale of the locked-up shares in Section 4.b shall be automatically and immediately lifted.

 

5. Confidential
Information.

 

a. The
Consultant understands that the Consultant's relationship to the Company creates a relationship of confidence and trust with respect to
any information of a confidential or secret nature that may be disclosed to the Consultant by the Company or by the business of any affiliate,
customer or supplier of the Company or any other party with whom the Company agrees to hold information of such party in confidence(“Confidential
Information”). Such Confidential Information includes but is not limited to plans, research, know-how, trade secrets, specifications,
drawings, sketches, models, samples, data, technology, computer programs, documentation, relating to software, computer systems, source
code, object code methodologies, product development, distribution plans, contractual arrangements, profits, sales, pricing policies,
operational methods, technical processes, other business affairs and methods, plans for future developments and other technical and business
information, including information related to inventions, which is not publicly available and can be communicated by any means whatsoever,
including without limitation oral, visual, written and electronic transmission.

 

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b. At
all times, both during the term of this Agreement and after its termination, the Consultant will keep and hold, and will take all reasonable
and appropriate steps to ensure that its personnel keeps and holds, all Confidential Information in strict confidence and trust, and neither
the Consultant nor any of its personnel will use or disclose any of such Confidential Information without the prior written consent of
the Company, whether such Confidential Information was obtained prior to or during the term of this Agreement. Upon termination of this
Agreement, the Consultant will promptly deliver to the Company all documents and materials of any nature pertaining to the Consultant's
work with the Company and the Consultant will not take any documents or materials or copies thereof containing any Confidential Information.
the Consultant represents and warrants that during any period prior to this Agreement in which the Consultant may have received or otherwise
had access to Confidential Information, the Consultant did not disclose any such Confidential Information. The Consultant further represents
and covenants that it will cause any of its personnel providing Services under this Agreement to enter into a non-disclosure agreement
in favor of the Company.

 

c. The
Consultant agrees to notify the Company immediately upon discovery of (1) any unauthorized disclosure of Confidential Information, (2)
any use of Confidential Information other than in pursuit of the Consultant's business relationship with the Company, and (3) any other
breach of this Agreement by the Consultant, and the Consultant will cooperate with the Company in every reasonable way to help the Company
regain possession of the Confidential Information and prevent its further unauthorized use.

 

d. Confidential
Information shall not include that information otherwise defined as Confidential Information that (1) entered the public domain without
a breach by the Consultant or its personnel or affiliates of any obligation owed the Company, (2) became demonstrably known to the Consultant
prior to the Company’s disclosure of such information to the Consultant, or (3) became known by or available to the Consultant from
a source other than the Company subsequent to the Company’s disclosure of such information to the Consultant, without any breach
of any obligation of confidentiality owed to the Company.

 

e. Notwithstanding
anything to the contrary contained in this Agreement, the parties hereto agree and acknowledge that, pursuant to the Defend Trade Secrets
Act of 2016 (the “DTSA”), no individual may be held liable for the disclosure of a trade secret that (a) is made (i)
in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (ii) solely for the
purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit
or other proceeding if such filing is made under seal. The parties further agree and acknowledge that under the DTSA, any individual who
files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose trade secrets to the attorney of
the individual and use the trade secret information in the court proceeding, if the individual (y) files any document containing the trade
secret under seal and (z) does not disclose the trade secret, except pursuant to the order.

 

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6. Company
Property. During the term of this Agreement and after its termination, Consultant will not use any Company Property for any purpose
other than for the benefit of the Company. Upon termination of this Agreement, or at any time at the request of the Company, Consultant
will return all Company Property. Consultant will also return all copies of Company Property, and any work product derived from Company
Property. "Company Property" means Confidential Information of the Company, customer lists, prospect lists, forms, manuals,
records, correspondence, contracts, notes, memoranda, notebooks and other documents of the Company, software media, equipment, and other
intangible and tangible property owned by the Company including, without limitation, any and all of the Assets.

 

7. Non-Competition.
During the term of this Agreement and for a period of two years following termination of his service with the Company for any reason,
Consultant will not, either alone or jointly with others or as an agent, consultant or employee of any person, firm or company, directly
or indirectly, voluntarily or involuntarily, carry on or engage in any activity or business which is in competition with the business
of the Company or any of its affiliates, successors or assigns.

 

8.
Non-Solicitation. During the term of his service with the Company and thereafter for a period of one year, the Consultant will
not, either alone or in association with others (i) solicit, divert, take away, encourage or attempt to divert or take away the business
or patronage of any of the clients, customers or business partners of the Company which were contacted, solicited or served by the Company
or any of its affiliates during the 12-month period prior to the termination or cessation of the Consultant’s service to the Company;
(ii) solicit, induce or attempt to induce any employee of the Company or its affiliates to terminate their employment or other engagement
with the Company or any such affiliate; (iii) hire, recruit or attempt to hire, or engage or attempt to engage as an independent contractor,
any person who was employed or otherwise engaged by the Company or any of its affiliates at any time during the term of this Agreement.

 

9. Term;
Termination.

 

a. The
engagement of Consultant hereunder by the Company shall commence as of the Effective Date and shall continue until the end of the Engagement
Period specified on Exhibit A, unless terminated previously in accordance with this Section 9.

 

b. Notwithstanding
the foregoing, this Agreement may be terminated for cause by either Party which shall be effective immediately. For purposes of this Section
9, the term “cause” shall mean any (i) material breach of this Agreement by either Party which remains uncured for 10 days
following notice thereof, (ii) breach by Consultant of any of the provisions of Section 5 of this Agreement concerning treatment of Confidential
Information; (iii) gross negligence or willful misconduct by either Party in the performance of its obligations under this Agreement,
(iv) any action taken by either Party which is reasonably likely to cast the other Party in an unfavorable light or bring negative publicity
to the other Party or (v) the unavailability of a Party to allow for the performance of the Services hereunder.

 

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c. This
Agreement will automatically be terminated in the event of the death or disability of Consultant. For purposes of this Section 9.c, “disability”
shall mean the inability of Consultant to perform the Services as a result of physical or mental illness or incapacity for a period in
excess of 120 calendar days.

 

d. This
Agreement may be terminated by Consultant if the Company is able, in good faith, to retain another equally qualified consultant to replace
the Consultant in the performance of the Services, and the Consultant has devoted sufficient time and effort to training such replacement
consultant and facilitating the transition, which in any event shall be no less than 90 calendar days.

 

10. Effect
of Termination. The parties agree that in the event of (a) a breach of this Agreement by the Company which results in early termination,
or termination of Consultant’s services; (b) termination of this Agreement by the Company without cause; or (c) termination of this
Agreement pursuant to Section 9.c or 9.d hereof, the Company shall pay to the Consultant any unpaid Base Compensation due through the
date of termination; any remaining restrictions on the Consultant’s Shares shall be lifted; and the Company shall pay the Consultant
for any unpaid expenses.

 

11. No
Conflicting Obligations; No Breach. Consultant represents and warrants that Consultant is, and at all times during the term of engagement
under this Agreement will be, under no obligation to any third party that would interfere with or restrict Consultant’s rendering
to the Company of the Services hereunder. Consultant represents that Consultant's performance of all the terms of this Agreement will
not breach any work product assignment, proprietary information or other agreement with any former or current employer or other party.

 

12. Independent
Contractor. In performing Services for the Company pursuant to this Agreement, Consultant shall act in the capacity of an independent
contractor with respect to the Company and not as an agent or employee of the Company.

 

13. Compliance
with Legal Requirements. The Company shall not provide workers’ compensation, disability insurance, Social Security or unemployment
compensation coverage nor any other statutory benefit to Consultant or any of its personnel.

 

14. Compliance
with Standards. Consultant’s performance under this Agreement shall be conducted with due care and in full compliance with the
highest professional standards of practice applicable to the Services. Consultant shall comply with all applicable Company rules and policies
in the course of performing the Services.

 

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15. Limitation
on Liability. Neither party shall be liable with respect to any subject matter of this agreement, under any contract, negligence,
strict liability or other theory, for any indirect, incidental, special, exemplary or consequential damages, including without limitation,
any loss of revenues or profits.

 

16. Governing
Law; Jurisdiction. This Agreement will be governed and interpreted in accordance with the internal laws of the State of Arizona without
regard to or application of choice of law rules or principles. The Parties submit to the exclusive jurisdiction, and venue shall be deemed
proper, in the courts in the State of Arizona, located in the County of Pima.

 

17. Notices.
All notices required to be given under the terms of this Agreement or which any of the Parties desire to give hereunder shall be in writing
and personally delivered, sent by registered or certified mail, return receipt requested, or by overnight courier, in each case, to the
address first set forth above. Any party may designate a change of address at any time by giving written notice thereof to the other parties.

 

18. Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision
hereof, which shall remain in full force and effect.

 

19. No
Waiver. None of the provisions of this Agreement shall be deemed to have been waived by any act or acquiescence on the part of the
Company, its agents, employees or Consultant, but only by an instrument in writing signed by an authorized officer of the Company or Consultant.
No waiver of any provision of this Agreement shall constitute a waiver of any other provision(s) or of the same provision on another occasion.

 

20. Entire
Agreement. This document and its related attachments contain the entire agreement between Consultant and the Company regarding the
terms of Consultant' engagement by the Company and supersede any and all prior or simultaneous agreements of understandings between the
parties and any amounts due or accrued thereunder are hereby waived. Any amendment to the terms of this Agreement must be in writing and
must be signed by Consultant and the Company.

 

21. Assignment.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
This Agreement may not be assigned by Consultant without the prior written consent of Company (any purported assignment hereof in violation
of this provision being null and void). This Agreement may be assigned by the Company in its sole discretion.

 

22. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument.

 

23. Survival.
Sections 4, 5, 6, 7-9 and 16-18 shall survive termination of this Agreement.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date first above written.

 

	Company:	 	The Consultant:
	 	 	 
	APPLIED ENERGETICS, INC.	 	TMC FINANCIAL SERVICES, LLC
	 	 	 
	By:	/s/ Bradford T. Adamczyk	 	By:	/s/
    Stephen McCommon
	Name: 	Bradford T. Adamczyk	 	 	Stephen McCommon
	Title:	 	 	Title:	 
	 	 	 
	 	 	/s/ Stephen
    McCommon
	 	 	Stephen McCommon

 

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Exhibit A

 

STATEMENT OF WORK

 

General Duties and Tasks: Consultant shall provide general accounting,
bookkeeping and controlling services to the Company, including maintaining the general ledger, communicating and reconciling records with
the Company’s transfer agent, compiling information for the Company’s reports to the Securities and Exchange Commission, coordinating
with the Company’s auditors and advising and reporting to management all necessary issues with respect to the foregoing.

 

Engagement Period: 24 months commencing on the Effective Date
unless earlier terminated; renewable for periods of one year thereafter by mutual agreement of the parties.

 

 

8Exhibit 4.6

 

APPLIED
ENERGETICS, INC

PERFORMANCE
STOCK OPTION GRANT AGREEMENT

 

This
STOCK OPTION GRANT AGREEMENT (this “Grant”) is made as of the _____ day of ____________ (the “Grant
Date”) by and between Applied Energetics (the “Company”), a Delaware corporation, having a principal place of
business in Tucson, AZ, and __________________ (the “Holder and Consultant”) residing at __________________________.

 

1. Grant
of Option. The Company, pursuant to a Consulting Agreement dated March 16, 2017 between the Company and Consultant, hereby grants
to the Holder the right and option (the “Performance Option”) to purchase all or any part to the extent vested of an aggregate
of _____________________ (___________________) shares (the “Shares”) of its common stock, $.001 par value per share (the “Common
Stock”), on the terms and conditions and subject to all the limitations set forth herein.

 

2. Purchase
Price. The purchase price of the Shares covered by the Option (the “Purchase Price”) shall be $_____ per Share.

 

3. Vesting
of Performance Option. The Performance Option granted hereby shall vest provided the Agreement is in effect to the extent of ______________
shares on the date the Company achieves $______________ of cumulative revenues (the “Performance Option Vesting Date”). Vested
Performance Options are exercisable upon vesting.

 

4. Tenn
of Performance Option. The Performance Option shall terminate five (5) years from the Grant Date. Termination of the performance
of Services by Consultant pursuant to the Agreement shall cause unexercised and unvested Performance Options to expire on the termination
date.

 

     

     

    

 

 5. Exercise of Performance Option and Issue of Shares.

 

(a) The
Performance Option may be exercised in whole or in part by the Holder or the Holder’s heirs, successors or assigns (the term “Holder”
being hereinafter defined to include any of the Holder’s heirs, successors or assigns) by giving written notice to the Company, together
with the tender of the Purchase Price of the Shares covered by the Option. Such written notice shall be signed by the person exercising
the Option, shall state the number of Shares with respect to which the Option is being exercised, shall contain any warranty required
by Section 7 below and shall otherwise comply with the terms and conditions of this Grant. The Company shall pay all original issue taxes
with respect to the issue of the Shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in connection
therewith. Except as specifically set forth herein, any income or other taxes due from the Holder with respect to this Option or the
Shares issuable pursuant to this Option shall be the responsibility of the Holder. The Holder shall have rights as a stockholder only
with respect to any Shares covered by the Option after due exercise of the Option and tender of the full Purchase Price for the Shares
being purchased pursuant to such exercise.

 

(b) The
Holder may, at the Holder’s option, exchange the options represented by this Option, in whole or in part (a “Option Exchange”),
into the number of Shares determined in accordance with this Section 6(b) by surrendering this Option at the principal office of the
Company or at the office of the transfer agent, accompanied by a notice stating such Holder’s intent to effect such exchange, the number
of Shares to be exchanged and the date on which the Holder requests that such Option Exchange occur (the “Notice of Exchange”).
The Option Exchange shall take place on the date specified in the Notice of Exchange or, if later, the date the Notice of Exchange is
received by the Company (the “Exchange Date”). Certificates for the Shares issuable upon such Option Exchange and, if applicable,
a new Option Certificate (a “Remainder Option Certificate”) of like tenor evidencing the Option which were subject to the surrendered
Option and not included in the Option Exchange, shall be issued as of the Exchange Date and delivered to the Holder. In connection with
any Option Exchange, the Holder’s Option shall represent the right to subscribe for and acquire (I) the number of Shares (rounded to
the next highest integer) equal to (A) the number of Shares specified by the Holder in the Holder’s Notice of Exchange (the “Total
Share Number”) less (B) the number of Shares equal to the quotient obtained by dividing (i) the product of the Total Share Number
and the existing Purchase Price per Share by (ii) the current Market Price (as hereinafter defined) of a share of Common Stock, and (II)
a Remainder Option Certificate representing an option to purchase a number of Shares equal to the number of Shares covered by this Option
minus the Total Share Number, if applicable. “Market Price” at any date shall be deemed to be the closing sale price for the
trading day immediately prior to such date (X) as officially reported by the reporting securities exchange on which the Common Stock
is listed or admitted to trading or as reported by the Nasdaq Stock Market, or (Y) if the Common Stock is not listed or admitted to trading
on any national securities exchange or quoted on the Nasdaq Stock Market, the closing sale price as furnished by the National Association
of Securities Dealers, Inc. through Nasdaq or similar organization if Nasdaq is no longer reporting such information, or (Z) if the Company
detennines that none of the foregoing apply, the fair market value of the Common Stock as determined in good faith by resolution of the
independent directors of the Company, based on the best information available for the day immediately preceding the Exchange Date and
the day of the Exchange Date; provided, however, that the Holder shall pay all expenses incurred by the independent directors of the
Company in making their good faith determination of the fair market value of the Common Stock, including but not limited to the fees
and expenses of any valuation finn engaged such independent directors.

 

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6. Purchase
for Investment. Unless the offering and sale of the Shares to be issued upon the particular exercise of the Performance Option shall
have been effectively registered under the Securities Act of 1933, as now in force or hereafter amended, or any successor legislation
(the “Act”), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following
conditions have been fulfilled:

 

(a) The
person(s) who exercise the Option shall be deemed to warrant to the Company, at the time of such exercise, that such person(s) are acquiring
such Shares for each such person’s own account, for investment and not with a view to, or for sale in connection with, the distribution
of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend or a
substantially similar legend which shall be endorsed upon the ce1tificate(s) evidencing the Shares issued pursuant to such exercise:

 

“The
shares represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”). Such
shares may not be sold, transferred or otherwise disposed of unless they have first been registered under the Act or, unless, in the
opinion of counsel satisfactory to the Company’s counsel, such registration is not required.”

 

(b) If
deemed necessary by the Company, it shall have received an opinion of its counsel that the Shares may be issued upon such particular
exercise in compliance with the Act without registration thereunder. Without limiting the generality of the foregoing, the Company may
delay issuance of the Shares until completion of any action or obtaining of any consent, which the Company deems necessary under any
applicable law (including without limitation state securities or “blue sky” laws).

 

 

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7. Capital
Adjustments. The number of Shares as to which the Option has not been exercised, the Purchase Price, and the type of
consideration to be received on exercise of the Option shall be equitably adjusted or changed by the Company to reflect such events
as stock dividends, split-ups, spin-offs, recapitalizations, reclassifications, combinations or exchanges of shares, mergers,
consolidations, liquidations, or the like, of or by the Company. Any adjustment determined to be appropriate by the Company shall be
conclusive and shall be binding on the Holder.

 

 8. Notices. Any notices required or permitted by the terms of this Grant shall be given by registered or certified mail, return receipt requested, addressed as follows:

 

To
the Company:

 

Applied
Energetics, Inc.

2480 W Ruthrauff Road

Tucson, AZ 85705

E-mail:
Smccommon@appliedenergetics.net

 

To
the Holder:

 

As
listed for the Purchaser

below the Purchaser’s

signature block on the

signature page hereto.

 

or
to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have
been given when mailed in accordance with the foregoing provisions. The Company and the Holder may each change the addresses to which
notices hereunder may be given by providing the other with written notice of such change.

 

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6. Arbitration
of Certain Claims. Any dispute or controversy between the Holder and the Company or Borislow or among such persons arising in connection
with any assignment restrictions imposed hereunder or the valuation required under Section 5(b)(Z) above shall be settled exclusively
by arbitration in New York, New York in accordance with the rules of the American Arbitration Association then in effect. Such arbitration
shall be limited to the determination ofreasonableness with respect to Section 5 and the determination of fair market value with respect
to Section 5(b)(Z). Damages shall not be considered or awarded in the arbitration. Such arbitration must commence on a mutually agreeable
date within 180 days of a notice of dispute given by the Holder. The decision of the arbitrator shall be final, conclusive, non-appealable
and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court of competent jurisdiction.
The Company and the Holder shall each pay one-half of the costs and expenses of such arbitration, and shall separately pay their own
respective counsel fees and expenses.

 

7. Governing
Law. This Grant shall be construed and enforced in accordance with the laws of the State of Delaware.

 

8. Successors.
The terms and conditions of this Grant shall apply to the heirs, executors, administrators and successors and assigns of the Holder and
the Company.

 

[signatures
follow]

 

 

5

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