Document:

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement, dated
December 14, 2016 (this “Agreement”), is entered into by and between HYDRA INDUSTRIES ACQUISITION CORP., a
Delaware corporation (the “Company”), and DANIEL B. SILVERS, having an address at 1199 Park Avenue, Apt. 17A,
New York, NY 10128 (the “Executive”). Capitalized terms used but not otherwise defined in this Agreement have
the respective meanings set forth herein. This Agreement will be effective upon, and subject to, the consummation of the Business
Combination pursuant to the Sale Agreement. In the event the Sale Agreement is terminated in accordance with its terms, this Agreement
shall be void ab initio and have no effect.

 

WHEREAS, the Company
and the Executive desire to state the terms and conditions under which the Executive will be employed by the Company;

 

NOW, THEREFORE,
in consideration of the mutual covenants herein contained, the Company and the Executive, intending to be legally bound, hereby
agree as follows effective upon the closing of the Business Combination (such date, the “Commencement Date”):

 

1.           EMPLOYMENT.
The Company agrees to employ the Executive and the Executive agrees to be employed by the Company
on and subject to the terms and conditions set out in this Agreement. 

 

2.           COMMENCEMENT
AND TERM. 

 

(a)          The
Executive’s employment with the Company under this Agreement shall begin on the Commencement Date. 

 

(b)          The
employment of the Executive shall (subject to Section 16 hereof) be for an indefinite period. Except in the case of “Cause”
(as defined below), the employment shall be terminable by the Company giving not less than three months’ notice in writing
to the Executive or by the Executive giving not less than three months’ notice in writing to the Company. 

 

(c)          The
Company may at its absolute discretion elect to terminate the employment of the Executive with immediate effect on or at any time
after either party gives notice pursuant to Section 2(b) by paying to the Executive all salary, maximum annual bonus and other
benefits contractually due to him (or an amount equal to the cash value thereof) in respect of the notice period or, if less, the
notice period still outstanding; provided, that in such case any incentive and equity (or equity-based) compensation shall be deemed
fully vested at the effective date of such termination (except for any award under the Plan (as defined below), which award shall
not be deemed fully vested, but in the case of termination by the Company without Cause or termination by the Executive for Good
Reason shall remain subject to potential future vesting as provided in Section 16(b)(VI)).

 

3.           OBLIGATIONS
DURING EMPLOYMENT. 

 

(a)
          During his employment, the Executive shall:

 

(i)

          serve the Company to the best of his ability in the capacity of its Chief Strategy Officer;

 

(ii)

         faithfully and diligently perform such duties and exercise such powers as the Board may from time to time properly assign to
or confer upon him insofar as is consistent with his position;

 

     

     

    

  

(iii)

          if and so long as the Board so directs (and the Executive agrees), perform and exercise such duties and powers on behalf of
any Associated Company and act as a director or other officer of any Associated Company; provided, that (A) such duties are ancillary
to his job title stated in Section 3(a)(i), and (B) the Executive’s contract of employment shall not be transferred to any
other company of the Group at any time;

 

(iv)

          do all reasonably in his power to protect, promote, develop and extend the business interests and reputation of the Group,
all at the expense of the Group (subject to compliance with Section 11);

 

(v)

          at all times and in all material respects (A) conform to and comply with (1) any lawful direction of the Board serving a reasonable
business purpose and not inconsistent with this Agreement, (2) the provisions of the Company’s Certificate of Incorporation
(as amended from time to time), and (3) the requirements of any relevant regulatory body or securities exchange governing the activities
of any member of the Group and (B) conform to and so far as he is able to comply with the conditions to and terms of any license
(the terms of which he is first made aware of by the Company) granted to any member of the Group; and

 

(vi)

          promptly give to the Board (in writing if so requested) all such information, explanations and assistance as it may lawfully
require for any reasonable business purpose in connection with the business and affairs of the Company and any Associated Company
for which he is required to perform duties.

 

(b)          After
a party gives notice to the other party to terminate this Agreement pursuant to Section 2(b), the Company at any time during the
continuance of the Executive’s employment after such notice is given may require the Executive not to attend work and/or
not to undertake any or all of his duties or to allocate other duties to him. During any such period where the Executive is required
not to attend work and/or not to undertake any or all of his duties pursuant to Section 3, the Company:

 

(i)
          shall not be obliged to
provide the Executive with any work;

 

(ii)

         may require the Executive to resign as a director of any Associated Company; and

 

(iii)          shall
continue to pay to the Executive salary and maximum annual bonus and provide any other benefits to which he is contractually entitled
(including, for the avoidance of doubt, the Deferral Portion) and the Executive shall remain bound by the terms and conditions
of this Agreement (the Executive’s attention is particularly
drawn to Section 15 below), provided, that the Executive shall not be subject to any limitations of Section 4(a)(i) or (b)(iv)
hereof during the notice period.

 

		4.	FURTHER OBLIGATIONS
OF THE EXECUTIVE.

 

		 	(a)

 

(i)          The
Executive’s employment hereunder shall be non-exclusive; provided, however, that during his employment the Executive shall
not without prior written consent of the Board serve on the board of directors of more than five companies the common equity securities
of which are traded publicly on any national securities exchange. The foregoing limitation shall not apply to those directorships
held by the Executive in any Associated Company. The Executive’s activities for Matthews Lane Capital Partners LLC or any
of its affiliates (collectively, “MLCP”) shall not be restricted in any way, and the Executive may be involved in or
act as an officer, director, employee or other representative of any private company as he may in his sole discretion determine.
For the avoidance of doubt, the Company further acknowledges that the Executive has not committed any specific time to the Company,
and his outside activities will not be limited except by this Section 4(a)(i) and Section 4(a)(ii) below.

 

    Page 2

     

    

  

(ii)         Notwithstanding
the non-exclusive nature of the Executive’s employment hereunder, during his employment, and during the period for which
the Executive receives any payments provided for in the last sentence of Section 16(b), the Executive shall not, directly or indirectly,
engage in any business which is directly competitive with any business conducted by the Inspired Entertainment Group during his
employment, in any geographic area in which such business was so conducted by the Inspired Entertainment Group. Executive agrees
and acknowledges that the consideration provided under this Agreement is sufficient to justify such limitation on the Executive’s
ability to earn a livelihood in a business directly competitive with the Inspired Entertainment Group.

 

(b)          During
his employment, the Executive:

 

(i)

          shall not directly or indirectly procure, accept or obtain for his own benefit (or for the benefit of any other person) any
payment, rebate, discount, commission, voucher, gift, entertainment or other benefit (“Gratuities”) from any
third party in respect of any business transacted or proposed to be transacted (whether or not by him) by or on behalf of the Company
or any Associated Company in violation of Company policies applicable to Gratuities;

 

(ii)

          shall observe the terms of any policy issued by the Company in relation to such Gratuities and any other bribery or corruption
related laws which are relevant to the jurisdictions in which the Group does business;

 

(iii)

          shall immediately disclose and account to the Company for any such Gratuities received by him (or by any other person on his
behalf or at his instruction); and

 

(iv)

          shall promptly disclose to the Board full details of any investment (of whatever sort) he makes in any business or company
within the Group’s area(s) of industry / sector(s).

 

		5.	REMUNERATION.

 

(a)          The
Company shall pay to the Executive during his employment a salary (which shall accrue from day to day) at the rate of US$350,000.00
per year. The salary shall be payable by 12 equal monthly installments per annum in arrears and shall be subject to review by the
Compensation Committee annually but without any commitment to increase. For the avoidance of doubt, the Executive’s salary
(as may be increased from time to time) shall not be decreased during his employment. Notwithstanding anything to the contrary,
the Executive will, during his employment, have a salary and other benefits and perquisites at levels that are each more favorable
than those respective levels offered to any other executive of the Company or Associated Companies Controlled by the Company with
the exception of the Chief Executive Officer, the Executive Chairman and/or not more than one other senior executive officer who
may be hired after the date hereof.

 

(b)          The
Executive will, during his employment, be eligible to earn a target annual bonus of not less
than 100% of Executive’s annual base salary and a maximum annual bonus of 200% of Executive’s annual base
salary. Annual performance goals, which will be the same as those that apply to the Chief Executive Officer of the Company, will
be established by the Compensation Committee in consultation with the Executive, and such goals, once final, will be communicated
to the Executive not later than 60 days after the start of the applicable fiscal year. Any annual bonus that becomes payable hereunder
shall be paid to Executive within two and one-half months after the end of the applicable fiscal year.

 

    Page 3

     

    

  

(c)          Subject
to the consummation of the Business Combination and to the Executive’s continued employment by the Company on January 1,
2017, effective as of January 1, 2017 the Executive shall be granted 150,000 shares of restricted stock pursuant to the Company’s
2016 Equity Incentive Plan (the “Plan”). The Executive will, during his employment, be eligible to receive additional
incentive and equity (or equity-based) compensation and any other benefits at a level and on terms (including, without limitation,
terms relating to any vesting acceleration) that are no less favorable than those offered to any other executive of the Company
or Associated Companies Controlled by the Company with the exception of the Chief Executive Officer and/or the Executive Chairman.
Notwithstanding anything to the contrary, the Executive shall be eligible to participate in any compensation plan or benefit or
perquisite program of the Company or Associated Companies Controlled by the Company in which either the Chief Executive Officer
or the Executive Chairman is eligible to participate (except to the extent, if any, that a U.S. person is not eligible to participate
in such plan or program, in which case the Executive shall be provided with a reasonably equivalent benefit). For the avoidance
of doubt, any compensation payable to the Executive pursuant to Sections 5(a) and 5(b) shall be subject to this Section 5(c).

 

(d)          In
the event that the Executive ceases to be employed by the Company, any equity-based compensation held by the Executive shall be
subject to the terms and conditions of the applicable plan and equity award agreement(s) as well as the terms of this Agreement,
whichever is more favorable to the Executive.

 

(e)          In
respect of consulting services previously provided, and which will continue to be made available up to and including the Commencement
Date, by MLCP, the Company agrees to pay MLCP on January 3, 2017, $500,000 (the “Consulting Payment”). Notwithstanding
anything to the contrary in this Section 5(e), the Company may elect to pay up to 50% of the Consulting Payment at any time between
January 3, 2017 and the first anniversary of the Commencement Date (the “Deferral Portion”), provided in all
events that the Deferral Portion shall be fully earned and vested as of the Commencement Date.

 

		6.	[RESERVED]

 

		7.	[RESERVED]

 

8.          WAGE
DEDUCTIONS AND WITHHOLDINGS. The Executive hereby authorizes the Company to deduct from his salary or any other sums due to
him from the Company, any sums due from the Executive to the Company, including without limitation any overpayment of salary. Without
limiting the generality of the foregoing, the Company or any Associated Companies may withhold (or cause there to be withheld,
as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local
income, employment, or other taxes or contributions as may be required to be withheld pursuant to any applicable law or regulation.

 

		9.	OTHER REIMBURSEMENTS

 

(a)          Private
Medical Insurance. The Company will reimburse MLCP or such other entity as the Executive may direct for health care benefits
and insurance, including any fees payable to third party firms which provide access to such products, MLCP or such other entity
provides and/or pays for the benefit of the Executive and his family during the Executive’s employment hereunder.

 

(b)          Communications
Equipment and Service. During the Executive’s employment hereunder, the Company will reimburse the Executive or such
other entity as the Executive may direct for expenses relating to a mobile phone (iPhone or similar device) and any associated
service contract for such mobile phone. In no event is the Company entitled to possess or review such device or any of its contents.

 

    Page 4

     

    

 

10.         DEATH
IN SERVICE. The Company will provide the Executive with life insurance based on the Company’s Group life insurance policy,
the cover being four times salary, subject always to this level of cover being permitted by the life insurance policy provider.

 

		11.	EXPENSES.

 

(a)          The
Company shall, during his employment, reimburse the Executive in respect of all reasonable travelling accommodation, entertainment
and other similar out-of-pocket expenses exclusively and reasonably incurred by him in or about the performance of his duties.

 

(b)          Except
where specified to the contrary, all expenses shall be reimbursed subject to the Executive providing appropriate evidence (including
receipts, invoices, tickets and/or vouchers as may be appropriate) of the expenditure in respect of which he claims reimbursement.

 

(c)          During
the Executive’s employment hereunder, the Company will reimburse the Executive, or such other entity as the Executive may
direct, for the annual fee of one credit card of the Executive’s choice.

 

		12.	[RESERVED]

 

		13.	INCAPACITY.

 

(a)
          Subject to his complying with the Company’s procedures relating
to the notification and certification of periods of absence from work, the Executive shall continue to be paid his salary (inclusive
of any statutory sick pay or social security benefits to which he may be entitled) during any period of absence from work due
to sickness, injury or other incapacity up to a maximum of 26 weeks in aggregate in any period of 52 consecutive weeks.

 

(b)

          If any incapacity of the Executive shall be caused by an alleged action or wrong of a third party and the Executive shall decide
to claim damages in respect thereof and shall recover damages for loss of earnings over the period for which salary has been or
will be paid to him by the Company under Section 13(a), he shall account to the Company for any such damages for loss of earnings
recovered (in an amount not exceeding the actual salary paid or payable to him by the Company under Section 13(a) in respect of
the said period) less any costs borne by him in achieving such recovery. The Executive shall keep the Company advised of the commencement,
progress and outcome of any such claim. If required by the Company (and on receipt of an indemnity from the Company for all the
costs thereby incurred) the Executive shall use reasonable endeavors to recover such damages.

  

		14.	INTELLECTUAL PROPERTY
RIGHTS.

 

(a)          The
Executive and the Company foresee that he may make, discover and/or create Inventions, Authorship Rights or Works (as each of those
terms are defined below) in the course of his duties under this Agreement and agree that the Executive has special obligations
to further the interests of the Company. The Executive agrees to the terms set out in this Section 14 in consideration for the
salary, bonus and benefits set out in Sections 5, 9 and 10 above.

 

    Page 5

     

    

 

(b)          If the Executive (whether alone or with others) shall at any time during the period of his employment with the Company make
an invention (whether or not patentable) designed to be used in any line of business then conducted by the Company or any Associated
Companies (referred to in this Agreement as “Invention”) he shall promptly disclose to the Company full details
of such Invention to enable the Company to assess it and to determine whether under the applicable law the Invention is the property
of the Company; provided, that any Invention that does not belong to the Company shall be treated as confidential, and shall not
be used or otherwise exploited, by the Company.

 

(c)          If
the Executive (whether alone or with others) shall at any time during the period of his employment with the Company create any
documents, data, drawings, specifications, articles, computer programs, software (object or source code), equipment, network designs,
business logic, notes, sketches, drawings, reports, modifications, tools, scripts or other items directly or indirectly in the
course of his employment and that are designed for use in any line of business then conducted by the Company or any Associated
Companies in which the Executive is involved (“Works”), he shall promptly provide such Works to the Company
and title in and to the tangible property of the Works shall immediately upon creation or performance vest in and shall be and
remain the sole and exclusive property of the Company and the Executive hereby irrevocably and unconditionally assigns to the
Company all right, title and interest in and to the same.

 

(d)          If
any copyright, design right (whether registered or unregistered) or database rights in the Works (together “Authorship
Rights”) or any Invention belong to the Company, the Executive shall consider himself as a trustee for the Company in
relation to all such Authorship Rights or Invention and shall, at the request and expense of the Company, do all things necessary
to vest all rights, title and interest in such Authorship Rights or Invention in the Company or its nominee absolutely as legal
and beneficial owner and to secure and preserve full patent, copyright, design right or other appropriate forms of protection
therefor in any part of the world as the Company shall in its discretion think fit.

 

(e)          If
any Authorship Rights or Invention do not belong to the Company, the Company shall have the right to acquire for itself or its
nominee the Executive’s rights in such Authorship Rights or Invention within three months after disclosure or provision pursuant
to Section 14(b) or 14(c) of this Agreement (as applicable) or, if the Executive fails to disclose or provide documents or information
pursuant to Section 14(b) or 14(c) of this Agreement (as applicable), the date on which the Company first has actual knowledge
of the existence of such Authorship Rights or Invention, which acquisition shall be made on fair and reasonable terms to be agreed.

 

(f)         The Executive shall give notice in writing to the Company promptly on becoming aware of any infringement or suspected infringement
of any intellectual property rights in any Invention, Authorship Rights or
Works which are owned by the Company, or which are acquired or to be acquired by the Company pursuant to Section 14(e). The Executive
shall also notify the Company promptly on becoming aware of any infringement
or suspected infringement of any other intellectual property rights which the Executive should reasonably believe to be vested
in or owned by the Company or any Associated Companies or of any use by or disclosure to a third party (which he should reasonably
believe to be unauthorized by the Company) of any Confidential Information.

 

(g)
         Save for Section 14(f), rights and obligations under this Agreement shall
continue in force after the termination of this Agreement in respect of each or each set of Invention, Authorship Rights or Works
and shall be binding upon the Executive’s representatives.

 

(h)
         The Executive irrevocably waives any rights he may have under Chapter IV (Moral Rights) of the Intellectual Property (Copyright
and Related Rights) Act 2005 and any corresponding rights under the
applicable laws of any other jurisdiction in respect of all Authorship
Rights owned by the Company, or acquired by the Company or to be acquired by the Company pursuant to Section 14(e).

 

    Page 6

     

    

 

(j)         The
Company acknowledges that as of the Commencement Date the Executive may own and/or hold rights in and to intellectual property
that would, or could, otherwise constitute Inventions, Authorship Rights or Works, but were created, developed or acquired prior
to the Commencement Date, and the Company agrees and acknowledges that none of such intellectual property or rights (nor, for
the avoidance of doubt, any of Executive’s experience, knowledge and contacts in the gaming or other industries) shall constitute
property or rights of the Company (and that the Executive shall not be deemed to have granted any right or license thereto hereunder
or by mere service to the Company), and that the Executive shall be free to use and exploit such property or rights as he determines
in his sole and absolute discretion. The Company further acknowledges that from and after the Commencement Date the Executive
may create, develop or acquire Inventions, Authorship Rights or Works for use in businesses or activities outside the lines of
business then conducted by the Company or any other Group Company, and the Company agrees and acknowledges that it has no right,
title or interest therein or any right or claim to prevent or restrict any such activity by or for the Executive.

 

(k)          For
the avoidance of doubt, and in light of the non-exclusive nature of this Agreement, the Executive’s contacts and calendar
shall (anything in this Agreement to the contrary notwithstanding) at all times be the property of the Executive and not the Company,
and shall not be required to be delivered to the Company on termination; provided that the Company shall be entitled to retain
a copy of such contacts and calendar to the extent relevant to the business of the Company or any other Group Company.

 

		15.	CONFIDENTIALITY.

 

(a)         In
addition to the Executive’s common law obligations to keep confidential information secret, he must not disclose to any
person, firm or company, otherwise than in the proper course of his duties or with the written consent of the Company, any trade
secret or information of a confidential nature concerning the Company’s business or the business of any Associated Company,
or any client or prospective client of any of them including, but not limited to:

 

(i)          any
trade secret or confidential or secret information concerning the business development, affairs, future plans, business methods,
connections, operations, accounts, finances, organization, processes, policies or practices, designs, dealings, trading, software,
or know-how relating to or belonging to the Company and/or to any Associated Company or any of its suppliers, agents, distributors,
clients or customers;

 

(ii)         confidential
computer software, computer-related know-how, passwords, computer programs, specifications, object codes, source codes, network
designs, business processes, business logic, inventions, improvements and/or modifications relating to or belonging to the Company
and/or any Associated Company;

 

(iii)        details
of the Company’s or any Associated Company’s financial projections or projects, prices or pricing strategy, advertising,
marketing or development plans, product development plans or strategies, fee levels, commissions and commission structures, market
share and pricing statistics, marketing surveys and research reports and their interpretation;

 

(iv)        any
confidential research, report or development undertaken by or for the Company or any Associated Company;

 

    Page 7

     

    

 

(v)         details
of relationships or arrangements with, or knowledge of the needs or the requirements of, the Company’s or any Associated
Company’s actual or potential clients or customers;

 

(vi)        information
supplied in confidence by customers, clients or any third party to which the Company or any Associated Company owes an obligation
of confidentiality;

 

(vii)       lists
and details of contracts with the Company’s or any Associated Company’s actual or potential suppliers;

 

(viii)      information
of a personal or otherwise of a confidential nature relating to fellow employees, directors or officers of and/or consultants to,
the Company and/or any Associated Company for which the Executive may from time to time provide services;

 

(ix)         confidential
information concerning, or details of, any competitive business pitches, and/or target details;

 

(x)          any
document or information marked as confidential on its face; or

 

(xi)         any
document or information which has been supplied to the Executive in confidence or which he has been informed is confidential or
which he might reasonably be aware is confidential.

 

Any
information of the sort described in this Section 15(a) which the Executive obtains or becomes aware of during the course of his
employment under this Agreement or which, by virtue of the Executive’s position, it may reasonably be assumed he has obtained
or become aware of during the course of his employment under this Agreement shall be “Confidential Information” for
the purposes of this Agreement.

 

(b)
         The Executive undertakes to use his best endeavors (subject to payment by the Company of any expense reasonably incurred in
so doing) to prevent unauthorized publication or disclosure to any third party of any Confidential Information (save as may be
required by law or a duly authorized regulatory body).

 

(c)
         The provisions in Sections 15(a) and 15(b) shall continue to apply
after termination of employment, howsoever arising, without any time limit. The provisions in Sections 15(a) and 15(b) shall not
apply to any information or knowledge which (i) is or comes into the public domain other than through unauthorized disclosure
of the Executive, (ii) is or becomes available to the Executive on a non-confidential basis from a source which is entitled to
disclose it to the Executive, or (iii) was already known to the Executive prior to the date hereof.

 

(d)
         Nothing in this Section 15 shall be construed or interpreted as preventing the Executive from making a disclosure pursuant
to any applicable legal requirement or order of any court or other tribunal or regulatory body. In circumstances where the Executive
feels it is necessary for him to make such a disclosure, he should, to the extent practical, first raise the issue with the Board,
or if the Executive’s concerns relate to certain members of the Board, to an officer or officers of the Company whom he
believes are not involved or implicated in the relevant matter.

 

    Page 8

     

    

  

(e)          Nothing
in this Agreement or otherwise shall prohibit the Executive from (i) reporting possible violations of federal or state law or regulation
to any U.S. governmental agency or entity or self-regulatory organization (including but not limited to the U.S. Department of
Justice, the U.S. Securities and Exchange Commission, the U.S. Congress, and any U.S. agency Inspector General), or making other
disclosures that are protected under the whistleblower provisions or other provisions of U.S. federal or state law or regulation,
(ii) providing truthful testimony or statements to the extent, but only to the extent, required by applicable law, rule, regulation,
legal process or by any court, arbitrator, mediator or administrative, regulatory, judicial or legislative body (including any
committee thereof) with apparent jurisdiction (provided, however, that in such event, except as set forth in the foregoing clause
(i) above or clause (iii) below, Executive will give the applicable Group Company prompt written notice thereof prior to such disclosure
so that the Group Company may seek appropriate protection for such information), (iii) reporting
or disclosing information under the terms of the Company’s Reporting Suspected Violations of Law Policy or such similar policy
as the applicable Group Company may have in effect from time to time, or (iv) disclosing information to the extent necessary to
enforce the terms of this Agreement.

 

		16.	TERMINATION OF EMPLOYMENT.

 

(a)
         The employment of the Executive may be terminated by the Company for Cause immediately upon written notice to the Executive.
“Cause” shall mean any of the following:

 

(i)          the Executive commits any serious or persistent material breach of the terms contained in this Agreement (after receiving prior
written warning of the nature of such breach and having been given a reasonable opportunity to rectify it); or

 

(ii)         the Executive is guilty of any gross negligence or willful gross
misconduct having a material adverse effect on the Company or Group in connection
with or affecting the business or affairs of the Company or any Associated Company for which he is required to perform duties;
or

 

(iii)         the Executive is convicted of, or pleads guilty or nolo contendere to, a felony (other than for a traffic-related offense);
or

 

(iv)         the
Executive commits or has committed any material breach of this Agreement
that has a material adverse effect on the Company or Group. No act or omission
to act by Executive shall be “willful” if conducted in good faith or with a reasonable belief that such act or omission
was in the best interests of the Company. Upon a termination of the Executive’s employment pursuant to this Section 16(a),
neither the Company nor any of the Affiliated Companies, shall be under any further obligation to the Executive, except the Company’s
obligation to pay (A) all accrued but unpaid salary to the date of termination (to be paid within 30 days following such termination,
less all applicable deductions), (B) any earned and vested benefits and payments pursuant to the terms of any benefit or incentive
plan or arrangement or award for the benefit of the Executive (including without limitation the reimbursement required by Section
9 above), (C) all unreimbursed business expenses incurred and properly submitted in accordance with this Agreement (which payments
and benefits described in subsections (A) through (C) are referred to herein as the “Accrued Benefits”), and
(D) for the avoidance of doubt, the Deferral Portion.

 

    Page 9

     

    

 

(b)          The
Executive may terminate his employment at any time for Good Reason by giving written notice to the Company of his good faith belief
that an event constituting Good Reason has occurred (without the Executive’s consent) within 90 days of the Executive having
knowledge of the circumstances that led to his good faith belief. “Good Reason” shall mean any of the following:
(A) a reduction in Executive’s titles, duties or authorities (including direct reporting responsibilities); (B) a reduction
in the Executive’s salary or target annual bonus; (C) any relocation of the Executive’s principal office to a location
not agreed by him; or (D) a material breach of this Agreement by the Company; provided, that the Company shall have 30 days following
receipt of such notice to cure such circumstance. If the Company fails to timely cure such circumstance, the Executive’s
employment shall terminate upon on the 90th day following the Company’s receipt of the Executive’s notice
of the event in question. Upon a termination of the Executive’s employment by the Executive for Good Reason pursuant to this
Section 16(b) or upon a termination of the Executive’s employment by the Company without Cause, the Executive shall be entitled
to receive from the Company: (I) the Accrued Benefits; (II) any earned but unpaid annual bonus with respect to the year prior to
the year in which the termination occurred; (III) a pro-rated maximum annual bonus for the year in which the termination occurred
(based on a fraction, the numerator of which is the number of days the Executive was employed by the Company during the year and
the denominator of which is 365) (in each case of clauses (I), (II) and (III) through the end of the notice period that would have
been applicable had the Executive been terminated as of the date of such notice by the Company pursuant to Section 2(b) above;
(IV) continued payment of the Executive’s salary for the two-year period following the termination date (or, if such termination
occurs within the two-year period immediately following the closing of the Business Combination or any Change in Control, payment
of the Executive’s salary for the three-year period following the termination date), payable in accordance with the Company’s
then current payroll practice; (V) payment of an amount equal to two times (or, if such termination occurs within the two-year
period immediately following the closing of the Business Combination or any Change in Control, three times) the Executive’s
maximum annual bonus, payable in equal installments over the two-year period (or three-year period, as the case may be) following
the termination date in accordance with the Company’s then current payroll practice; (VI) acceleration to the termination
date of 100% vesting of all incentive and equity (or equity-based) compensation received by him or to which he is entitled (or,
in the case of any award under the Plan, such award shall not be forfeited upon such termination, but shall remain subject to the
time, performance or other conditions to vesting specified in such award); and (VII) for the avoidance of doubt, the Deferral Portion.

 

(c)          Upon the termination of his employment (for whatever
reason and howsoever arising), the Executive:

 

(i)
         shall not take away, conceal or destroy but shall immediately deliver up to the Company all documents (which expression shall
include but without limitation notes, memoranda, correspondence, drawings, sketches, plans, designs a nd any other material upon
which data or information is recorded or stored) produced during the course of his employment with the Company relating to the
business or affairs of the Company or any Associated Company or any of their clients, customers, shareholders, employees, officers,
suppliers, distributors and agents together with any other property belonging to the Company or any Associated Company which may
then be in his possession or under his control;

 

(ii)         shall
at the request of the Board immediately resign without claim for compensation from office as a director of any Associated Company
and from any other office held by him in the Company or any Associated Company (but without prejudice to any claim he may have
for damages for breach of this Agreement or otherwise) and in the event of his failure to do so the Company is hereby irrevocably
authorized to appoint some person in his name and on his behalf to sign and deliver such resignations; and

  

(iii)         shall immediately repay all outstanding debts or loans due to the Company or any Associated Company and the Company is hereby
authorized to deduct from any amount owed to the Executive a sum in repayment of all or any part of any such debts or loans.

 

(d)          If
the Executive is involved in any pending or potential litigation, investigation or regulatory or administrative proceeding (each
a “Proceeding”) to which the documents the Executive previously delivered to the Company pursuant to Section 16(c)(i)
hereof may relate, the Company shall provide the Executive with access to such documents to the extent they are potentially related
to the Proceeding.

 

    Page 10

     

    

 

		17.	[RESERVED]

 

18.         ARBITRATION.
The parties agree that all claims, disputes, and/or controversies arising under this Agreement and/or related to the Executive’s
employment hereunder or the termination of such employment (whether or not based on contract, tort or upon any federal, state or
local statute, including but not limited to claims asserted under the Age Discrimination in Employment Act, as amended, Title VII
of the Civil Rights Act of 1964, as amended, any state Fair Employment Practices Act, and/or the Americans with Disabilities Act),
shall be resolved exclusively through mediation/arbitration by JAMS, in the County of New York in the State of New York, in accordance
with the JAMS Rules and Procedures for Mediation/Arbitration of Employment Disputes; provided, however, that in the event that
the Company alleges that the Executive is in breach of any of the provisions contained in Sections 4(a)(ii), 14 or 15 of this Agreement,
the Company shall not be exclusively required to submit such dispute to mediation/arbitration. In such event, the Company may,
at its option, seek and obtain from any court having jurisdiction, injunctive or equitable relief, in addition to pursuing at arbitration
all other remedies available to it (including without limitation any claims for relief arising out of any breach of Sections 4(a)(ii),
14 or 15 of this Agreement).  In the event that the Company chooses to bring any such suit, proceeding or action for injunctive
or equitable relief in an appropriate court, the Executive hereby waives his right, if any, to trial by jury, and hereby waive
his right, if any, to interpose any counterclaim or set-off for any cause whatever and agree to arbitrate any and all such claims.

 

		19.	[RESERVED]

 

		20.	PARACHUTE PAYMENTS.

 

(a)          Notwithstanding
anything to the contrary contained in this Agreement, to the extent that any amount, stock option, restricted stock, RSUs, other
equity awards or benefits paid or distributed to the Executive pursuant to this Agreement or any other agreement or arrangement
between the Company and the Executive (collectively, the "280G Payments") (a) constitute a "parachute payment"
within the meaning of Section 280G of the Code and (b) but for this Section 21, would be subject to the excise tax imposed by Section
4999 of the Code, then the 280G Payments shall be payable either (i) in full or (ii) in such lesser amount which would result in
no portion of such 280G Payments being subject to excise tax under Section 4999 of the Code; whichever of the foregoing amounts,
taking into account the applicable federal, state and local income or excise taxes (including the excise tax imposed by Section
4999) results in the Executive’s receipt on an after-tax basis, of the greatest amount of benefits under this Agreement,
notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. Unless the Executive and
the Company otherwise agree in writing, any determination required under this Section shall be made in writing by an independent
public accountant selected by the Company (the "Accountants"), whose determination shall be conclusive and binding upon
the Executive and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants
may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company and the Executive shall furnish to the Accountants
such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The
Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section,
as well as any reasonable legal or accountant expenses, or any additional taxes, that the Executive may incur as a result of any
calculation errors made by the Accountant and/or the Company in connection with the Code Section 4999 excise tax analysis contemplated
by this Section.

 

    Page 11

     

    

 

(b)          Additional
280G Payments. If the Executive receives reduced 280G Payments by reason of this Section 20 and it is established pursuant to a
final determination of the court or an Internal Revenue Service proceeding that the Executive could have received a greater amount
without resulting in an excise tax, then the Company shall promptly thereafter pay the Executive the aggregate additional amount
which could have been paid without resulting in an excise tax as soon as practicable.

 

(c)          Review
of Accountant Determinations. The parties agree to cooperate generally and in good faith with respect to (i) the review and determinations
to be undertaken by the Accountants as set forth in this Section 20 and (ii) any audit, claim or other proceeding brought by the
Internal Revenue Service or similar state authority to review or contest or otherwise related to the determinations of the Accountants
as provided for in this Section 20, including any claim or position taken by the Internal Revenue Service that, if successful,
would require the payment by the Executive of any additional excise tax, over and above the amounts of excise tax established under
the procedure set forth in this Section 20.

 

(d)          Order
of 280G Payment Reduction. The reduction of 280G Payments, if applicable, shall be effected in the following order (unless the
Executive, to the extent permitted by Section 409A of the Code, elect another method of reduction by written notice to the Company
prior to the Section 280G event): (i) payments that are payable in cash that are valued at full value under Treasury Regulation
Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii)
payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a),
with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24), will
next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section
1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in
respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values
reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24), will next be reduced; and
(v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. Any reductions made
pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and
payments and benefits due in respect of any equity not subject to Section 409A, and second, a pro-rata reduction of cash payments
and payments and benefits due in respect of any equity subject to Section 409A as deferred compensation.

  

		21.	NOTICES.

 

(a)          Any
notice to be given under this Agreement shall be given in writing and shall be deemed to be sufficiently served by one party on
the other if it is delivered personally or is sent by registered or recorded delivery pre-paid post addressed to either the Company’s
registered office for the time being or the Executive’s last known address as the case may be.

 

(b)          Any notice sent by post shall be deemed (in the absence of evidence of earlier receipt) to be received 2 days after posting
and in proving the time such notice was sent it shall be sufficient to show that the envelope containing it was property addressed,
stamped and posted.

 

		22.	MISCELLANEOUS.

 

(a)          The Executive hereby confirms that by virtue of entering into this Agreement he will not be in breach of any express or implied
terms of any Court Order, contract or of any other obligation legally binding upon him.

 

    Page 12

     

    

 

(b)          Any benefits provided by the Company to the Executive or his family which are not expressly referred to in this Agreement
shall be regarded as ex-gratia benefits provided at the entire discretion of the Company and shall not form part of the Executive’s
contract of employment.

 

(c)          MLCP
is an intended third party beneficiary of this Agreement.

 

		23.	SECTION 409A.

 

(a)          The intent
of the parties hereto is that payments and benefits under this Agreement are either exempt from or comply with Code Section 409A
and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to that end; provided, that no such interpretation
shall be used to diminish the Executive’s rights and entitlements hereunder.

 

(b)          If any payment,
compensation or other benefit provided to the Executive in connection with his employment termination is determined, in whole or
in part, to constitute “nonqualified deferred compensation” within the meaning of Code Section 409A and the Executive
is a “specified employee” as defined in Code Section 409A, no part of such payments shall be paid before the day that
is six (6) months plus one (1) day after the Executive’s date of termination or, if earlier, the Executive’s death
(the “New Payment Date”). The aggregate of any payments that otherwise would have been paid to the Executive
during the period between the date of termination and the New Payment Date shall be paid to Executive in a lump sum on such New
Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be
paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement.

 

(c)          A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits subject to Code Section 409A upon or following a termination of employment until such termination
is also a “separation from service” within the meaning of Code Section 409A and for purposes of any such provision
of this Agreement, references to a “resignation,” “termination,” “terminate,” “termination
of employment” or like terms shall mean separation from service.

 

(d)          All reimbursements
for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar
year in which the Executive incurs such expense. With regard to any provision herein that provides for reimbursement of costs and
expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall
not be subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursements or in-kind
benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided
in any other taxable year.

 

(e)          Whenever a
payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made
within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall
be within the sole discretion of the Company.

 

(f)          If
under this Agreement, an amount is paid in two or more installments, for purposes of Code Section 409A, each installment shall
be treated as a separate payment.

 

    Page 13

     

    

 

		24.	DEFINITIONS AND
INTERPRETATION.

 

(a)          In
this Agreement unless the context otherwise requires the following expressions have the following meanings:

 

(i)          “Associated
Company” means, with respect to any person, any other person that, directly or indirectly, through one or more intermediaries,
Controls, is Controlled by or is under common Control with such specified person from time to time,
and unless otherwise specifically provided herein, shall mean an Associated Company of the Company;

 

(ii)         “Board”
means the Board of Directors of the Company;

 

(iii)        “Business
Combination” means the acquisition by Hydra Industries Acquisition Corp., pursuant to the Sale Agreement, of all of the
equity and shareholder loan notes of DMWSL 633 Limited, Inspired Gaming Group Ltd. and its affiliates;

 

(iv)        “Change
in Control” shall be deemed to have occurred if:

 

A.           any
“person”, as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, other than (A) the
Company, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or (C) any
corporation owned, directly or indirectly, by the stockholders of the Company (in substantially the same proportion as their ownership
of shares), (a “Person”) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934), directly or indirectly, of securities of Parent representing 50% or more of the combined voting
power of the Company’s then outstanding voting securities;

 

B.           there
is consummated a merger or consolidation of the Company with any other entity, other than (A) a merger or consolidation which
would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving or parent entity) 50% or more of the combined voting
power of the voting securities of the Company or such surviving or parent entity outstanding immediately after such merger or consolidation
or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which
no Person is or becomes the beneficial owner (as defined in clause (A) above), directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company’s then outstanding securities; or

 

C.           there is consummated
a transaction or series of related transactions which results in the sale or transfer of all or a majority of the assets of the
Company and its subsidiaries taken as a whole (determined based on value); provided,
however, that, solely to the extent necessary to comply with, or avoid adverse tax consequences under, Code Section 409A,
none of the foregoing events shall be deemed to be a “Change in Control” unless such event constitutes a “change
in control event” within the meaning of Code Section 409A.

 

(v)         “Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

(vi)        “Compensation
Committee” means the compensation committee of the Board;

 

(vii)       “Control”
means, with respect to any person, the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such person, whether through the ownership of shares or securities, partnership interests or other ownership
interests, by contract, by membership or involvement in the board of directors, management committee or other management structure
of such person, or otherwise and “Controlled” shall be construed accordingly;

 

(viii)      “Group”
or “Group Company” means the Company and the Associated Companies;

 

    Page 14

     

    

 

(ix)         “Inspired
Entertainment Group” means the Company and the Associated Companies it Controls; and

 

(xii)        “Sale
Agreement” means the Share Sale Agreement, dated as of July 13, 2016, as it may be amended, by and among Hydra Industries
Acquisition Corp., and those persons identified on Schedule 1 thereto, DMWSL 633 Limited, DMWSL 632 Limited and Gaming Acquisitions
Limited.

 

(b)          References
in this Agreement to Sections are to sections in this Agreement.

 

(c)          References
in this Agreement to statutes or regulations shall include any statute or regulation modifying, re-enacting, extending or made
pursuant to the same or which is modified, re-enacted or extended by the same. Headings are for ease of reference only and shall
not be taken into account in the construction of this Agreement. Words importing the singular number shall include the plural and
vice versa and words importing the masculine shall include the feminine and neuter and vice versa.

 

(d)          This
Agreement contains the entire understanding between the parties and supersedes all (if any) subsisting agreements, arrangements
and understandings (written or oral) relating to the employment of the Executive which such agreements, arrangements and understandings
shall be deemed to have been terminated by mutual consent. The

Executive acknowledges that he has not entered into this Agreement in reliance on any warranty, representation or undertaking which
is not contained in or specifically incorporated in this Agreement. This Agreement may not be amended or terminated orally, but
only by a writing executed by the parties hereto. 

 

(e)          The various sections and sub-sections of this Agreement are severable and if any Section or Sub-Section or identifiable part
thereof is held to be invalid or unenforceable by any court of competent jurisdiction then such invalidity or unenforceability
shall not affect the validity or enforceability of the remaining sections or sub-sections or identifiable parts thereof in this
Agreement. The Company and Executive agree that the court making the determination of invalidity or unenforceability shall have
the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace
any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision, and this Agreement will be enforceable as so modified
after the expiration of the time within which the judgment may be appealed.

 

(f)          The substantive laws of the state of New York in the United States shall govern this Agreement. Executive acknowledges that
there is no adequate remedy at law for any breach or threatened breach of the provisions of Sections 15 and 18 of this Agreement
and that, in addition to any other remedies to which it or he may otherwise be entitled as a matter of law, the Company shall
be entitled to injunctive relief in the event of any such breach or threatened breach.

 

(g)          The
Company and Executive hereby consent to the exclusive jurisdiction of the federal and state courts in the State of New York, irrevocably
waive any objection it or he may now or hereafter have to laying of the venue of any suit, action, or proceeding in connection
with this Agreement in any such court, and agree that service upon it shall be sufficient if made by registered mail, and agree
not to assert the defense of forum non conveniens.

 

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

 

[SIGNATURE PAGE FOLLOWS]

 

    Page 15

     

    

 

IN WITNESS WHEREOF,
the Company and the Executive have executed this Agreement as of the date first written above.

 

	HYDRA INDUSTRIES ACQUISITION CORP. 	 
	 	 	 
	By :	/s/ A. Lorne Weil	 
	 	 	 
	Name:	 A. Lorne Weil	 
	 	 
	Title:	 Executive Chairman	 
	 	 
	EXECUTIVE	 
	 	 
	/s/ DANIEL B. SILVERS	 
	 	 
	DANIEL B. SILVERS	 

 

    Page 16Exhibit 10.4

 

EXECUTION VERSION

 

INDEMNITY AGREEMENT

 

THIS INDEMNITY AGREEMENT (this “Agreement”)
is made as of December __, 2016, by and between HYDRA INDUSTRIES ACQUISITION CORP., a Delaware corporation (the “Company”),
and ______________ (“Indemnitee”).

 

RECITALS

 

WHEREAS, highly
competent persons have become more reluctant to serve publicly-held corporations as directors, officers or in other capacities
unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims
and actions against them arising out of their service to and activities on behalf of such corporations;

 

WHEREAS, the Board
of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified
individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons
serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary
and widespread practice among publicly traded corporations and other business enterprises, the Company believes that, given current
market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.
At the same time, directors, officers and other persons in service to corporations or business enterprises are being increasingly
subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been
brought only against the Company or business enterprise itself. The Amended and Restated Certificate of Incorporation (the “Charter”)
and Bylaws of the Company require indemnification of the officers and directors of the Company. Indemnitee may also be entitled
to indemnification pursuant to applicable provisions of the Delaware General Corporation Law (“DGCL”).
The Charter, Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and
thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and
other persons with respect to indemnification, hold harmless, exoneration, advancement and reimbursement rights;

 

WHEREAS, the uncertainties
relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

 

WHEREAS, the Board
has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the
Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such
protection in the future;

 

WHEREAS, it is reasonable,
prudent and necessary for the Company contractually to obligate itself to indemnify, hold harmless, exonerate and to advance expenses
on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so protected against liabilities;

 

WHEREAS, this Agreement
is a supplement to and in furtherance of the Charter and Bylaws of the Company and any resolutions adopted pursuant thereto, and
shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

     

     

    

 

WHEREAS, Indemnitee
may not be willing to serve as an officer or director, advisor or in another capacity without adequate protection, and the Company
desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service
for or on behalf of the Company on the condition that he be so indemnified; and

 

NOW, THEREFORE,
in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:

 

TERMS AND CONDITIONS

 

1. SERVICES TO THE COMPANY. Indemnitee will serve or continue
to serve as an officer, director, advisor, key employee or in any other capacity of the Company, as applicable, for so long as
Indemnitee is duly elected, appointed or retained or until Indemnitee tenders his resignation.

 

2. DEFINITIONS. As used in this Agreement:

 

2.1. References to “agent”
shall mean any person who is or was a director, officer or employee of the Company or a subsidiary of the Company or other person
authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee,
advisor, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other
enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.

 

2.2. The terms “Beneficial Owner”
and “Beneficial Ownership” shall have the meanings set forth in Rule 13d-3 promulgated under the Exchange
Act (as defined below) as in effect on the date hereof.

 

2.3. A “Change in Control”
shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

 

2.3.1. Acquisition of Stock by Third Party.
Any Person (as defined below) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing
fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities entitled to vote
generally in the election of directors, unless (1) the change in the relative Beneficial Ownership of the Company’s securities
by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally
in the election of directors, or (2) such acquisition was approved in advance by the Continuing Directors (as defined below) and
such acquisition would not constitute a Change in Control under part 2.3.3 of this definition;

 

2.3.2. Change in Board of Directors.
Individuals who, as of the date hereof, constitute the Board, and any new director whose election by the Board or nomination for
election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then still in office
who were directors on the date hereof or whose election for nomination for election was previously so approved (collectively, the
“Continuing Directors”), cease for any reason to constitute at least a majority of the members of the
Board;

 

    	 	2	 

     

    

 

2.3.3. Corporate Transactions. The effective
date of a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination, involving
the Company and one or more businesses (a “Business Combination”), in each case, unless, following such
Business Combination: (1) all or substantially all of the individuals and entities who were the Beneficial Owners of securities
entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially own, directly
or indirectly, more than 51% of the combined voting power of the then outstanding securities of the Company entitled to vote generally
in the election of directors resulting from such Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through
one or more Subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination,
of the securities entitled to vote generally in the election of directors; (2) no Person (excluding any corporation resulting from
such Business Combination) is the Beneficial Owner, directly or indirectly, of 15% or more of the combined voting power of the
then outstanding securities entitled to vote generally in the election of directors of the surviving corporation except to the
extent that such ownership existed prior to the Business Combination; and (3) at least a majority of the Board of Directors of
the corporation resulting from such Business Combination were Continuing Directors at the time of the execution of the initial
agreement, or of the action of the Board of Directors, providing for such Business Combination;

 

2.3.4. Liquidation.
The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement or series of agreements
for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than factoring the
Company’s current receivables or escrows due (or, if such approval is not required, the decision by the Board to proceed
with such a liquidation, sale, or disposition in one transaction or a series of related transactions); or

 

2.3.5. Other Events.
There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below),
whether or not the Company is then subject to such reporting requirement.

 

2.4. “Corporate
Status” describes the status of a person who is or was a director, officer, trustee, general partner, managing member,
fiduciary, employee or agent of the Company or of any other Enterprise (as defined below) which such person is or was serving at
the request of the Company.

 

2.5. “Delaware Court” shall
mean the Court of Chancery of the State of Delaware.

 

2.6. “Disinterested
Director” shall mean a director of the Company who is not and was not a party to the Proceeding (as defined below)
in respect of which indemnification is sought by Indemnitee.

 

2.7. “Enterprise”
shall mean the Company and any other corporation, constituent corporation (including any constituent of a constituent) absorbed
in a consolidation or merger to which the Company (or any of its wholly owned subsidiaries) is a party, limited liability company,
partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request
of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent.

 

    	 	3	 

     

    

 

2.8. “Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended.

 

2.9. “Expenses” shall
include all direct and indirect costs, fees and expenses of any type or nature whatsoever, including, without limitation, all attorneys’
fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators
and professional advisors, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, fax
transmission charges, secretarial services and all other disbursements, obligations or expenses in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or
otherwise participating in, a Proceeding (as defined below), including reasonable compensation for time spent by the Indemnitee
for which he or she is not otherwise compensated by the Company or any third party. Expenses also shall include Expenses incurred
in connection with any appeal resulting from any Proceeding (as defined below), including without limitation the principal, premium,
security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however,
shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

2.10. “Independent Counsel”
shall mean a law firm or a member of a law firm with significant experience in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar
indemnification agreements); or (ii) any other party to the Proceeding (as defined below) giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company
or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

2.11. References to “fines”
shall include any excise tax assessed on Indemnitee with respect to any employee benefit plan; references to “serving at
the request of the Company” shall include any service as a director, officer, employee, agent or fiduciary of the Company
which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to an employee
benefit plan, its participants or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed
to be in the best interests of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have
acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

2.12. The term “Person”
shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act as in effect on the date hereof; provided,
however, that “Person” shall exclude: (i) the Company; (ii) any Subsidiaries (as defined below) of the Company; (iii)
any employment benefit plan of the Company or of a Subsidiary (as defined below) of the Company or of any corporation owned, directly
or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company;
and (iv) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Subsidiary (as
defined below) of the Company or of a corporation owned directly or indirectly by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company.

 

    	 	4	 

     

    

 

2.13. The term “Proceeding”
shall include any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism,
investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the
right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative,
or investigative or related nature, in which Indemnitee was, is, will or might be involved as a party or otherwise by reason of
the fact that Indemnitee is or was a director or officer of the Company, by reason of any action (or failure to act) taken by him
or of any action (or failure to act) on his part while acting as a director or officer of the Company, or by reason of the fact
that he is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary,
employee or agent of any other Enterprise, in each case whether or not serving in such capacity at the time any liability or expense
is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Agreement.

 

2.14. The term “Subsidiary,”
with respect to any Person, shall mean any corporation or other entity of which a majority of the voting power of the voting equity
securities or equity interest is owned, directly or indirectly, by that Person.

 

3. INDEMNITY IN THIRD-PARTY PROCEEDINGS. To the fullest
extent permitted by applicable law, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance with the
provisions of this Section 3 if Indemnitee was, is, or is threatened to be made, a party to or a participant (as a witness
or otherwise) in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 3, Indemnitee shall be indemnified, held harmless and exonerated against all Expenses, judgments,
liabilities, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable
in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably
incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee
acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in
the case of a criminal Proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

 

4. INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY.
To the fullest extent permitted by applicable law, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance
with the provisions of this Section 4 if Indemnitee was, is, or is threatened to be made, a party to or a participant (as
a witness or otherwise) in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this
Section 4, Indemnitee shall be indemnified, held harmless and exonerated against all Expenses actually and reasonably incurred
by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith
and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. No indemnification, hold harmless
or exoneration for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee
shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that any court in which
the Proceeding was brought or the Delaware Court shall determine upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification, to be held harmless
or to exoneration.

 

    	 	5	 

     

    

  

5. INDEMNIFICATION FOR EXPENSES OF A PARTY WHO IS WHOLLY OR PARTLY
SUCCESSFUL. Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or
a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter
therein, in whole or in part, the Company shall, to the fullest extent permitted by applicable law, indemnify, hold harmless and
exonerate Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith. If Indemnitee is not
wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims,
issues or matters in such Proceeding, the Company shall, to the fullest extent permitted by applicable law, indemnify, hold harmless
and exonerate Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each
successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful in such Proceeding, the Company also shall,
to the fullest extent permitted by applicable law, indemnify, hold harmless and exonerate Indemnitee against all Expenses reasonably
incurred in connection with a claim, issue or matter related to any claim, issue, or matter on which the Indemnitee was successful.
For purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in such a Proceeding
by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

6. INDEMNIFICATION FOR EXPENSES OF A WITNESS. Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding
to which Indemnitee is not a party, he shall, to the fullest extent permitted by applicable law, be indemnified, held harmless
and exonerated against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

7. ADDITIONAL INDEMNIFICATION, HOLD HARMLESS AND EXONERATION
RIGHTS.

 

7.1 Notwithstanding any limitation in Sections
3, 4, or 5, the Company shall, to the fullest extent permitted by applicable law, indemnify, hold harmless and
exonerate Indemnitee if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by
or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts
paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such
Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection
with the Proceeding.

 

8. CONTRIBUTION IN THE EVENT OF JOINT LIABILITY.

 

8.1. To the fullest extent permissible under
applicable law, if the indemnification, hold harmless and/or exoneration rights provided for in this Agreement are unavailable
to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying, holding harmless or exonerating
Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities, fines,
penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with any Proceeding without requiring Indemnitee
to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time
against Indemnitee.

 

    	 	6	 

     

    

 

8.2. The Company shall not enter into any settlement
of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding) unless such
settlement provides for a full and final release of all claims asserted against Indemnitee.

 

8.3. The Company hereby agrees to fully indemnify,
hold harmless and exonerate Indemnitee from any claims for contribution which may be brought by officers, directors or employees
of the Company other than Indemnitee who may be jointly liable with Indemnitee.

 

9. EXCLUSIONS.

 

Notwithstanding any provision in this Agreement, the Company shall
not be obligated under this Agreement to make any indemnification, hold harmless or exoneration payment in connection with any
claim made against Indemnitee:

 

		(a)	for which payment has actually been received by or on behalf of Indemnitee under any insurance policy or other indemnity provision,
except with respect to any excess beyond the amount actually received under any insurance policy, contract, agreement, other indemnity
provision or otherwise;

 

		(b)	for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company
within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law; or

 

		(c)	except as otherwise provided in Sections 14.5 and  14.6 hereof, prior to a Change in Control, in connection with
any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding)
initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized
the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, hold harmless
or exoneration payment, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

    	 	7	 

     

    

 

10. ADVANCES OF EXPENSES; DEFENSE OF CLAIM.

 

10.1. Notwithstanding any provision of this
Agreement to the contrary, and to the fullest extent not prohibited by applicable law, the Company shall pay the Expenses incurred
by Indemnitee (or reasonably expected by Indemnitee to be incurred by Indemnitee within three months) in connection with any Proceeding
within ten (10) days after the receipt by the Company of a statement or statements requesting such advances from time to time,
prior to the final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without
regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to be
indemnified, held harmless or exonerated under the other provisions of this Agreement. Advances shall include any and all reasonable
Expenses incurred pursuing a Proceeding to enforce this right of advancement, including Expenses incurred preparing and forwarding
statements to the Company to support the advances claimed. To the fullest extent required by applicable law, such payments of Expenses
in advance of the final disposition of the Proceeding shall be made only upon the Company’s receipt of an undertaking, by
or on behalf of the Indemnitee, to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled
to be indemnified by the Company under the provisions of this Agreement, the Charter, the Bylaws of the Company, applicable law
or otherwise. This Section 10.1 shall not apply to any claim made by Indemnitee for which an indemnification, hold harmless
or exoneration payment is excluded pursuant to Section 9.

 

10.2. The Company will be entitled to participate in the
Proceeding at its own expense.

 

10.3. The Company shall
not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty or limitation
on the Indemnitee without the Indemnitee’s prior written consent.

 

11. PROCEDURE FOR NOTIFICATION AND APPLICATION FOR
INDEMNIFICATION.

 

11.1. Indemnitee agrees to notify promptly the
Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document
relating to any Proceeding or matter which may be subject to indemnification, hold harmless or exoneration rights, or advancement
of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation
which it may have to the Indemnitee under this Agreement, or otherwise.

 

11.2. Indemnitee may deliver
to the Company a written application to indemnify, hold harmless or exonerate Indemnitee in accordance with this Agreement. Such
application(s) may be delivered from time to time and at such time(s) as Indemnitee deems appropriate in his or her sole discretion.
Following such a written application for indemnification by Indemnitee, the Indemnitee’s entitlement to indemnification shall
be determined according to Section 12.1 of this Agreement.

 

12. PROCEDURE UPON APPLICATION FOR INDEMNIFICATION.

 

12.1. A determination, if required by applicable
law, with respect to Indemnitee’s entitlement to indemnification shall be made in the specific case by one of the following
methods, which shall be at the election of Indemnitee: (i) by a majority vote of the Disinterested Directors, even though less
than a quorum of the Board (ii) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to
Indemnitee; or (iii) by vote of the stockholders. The Company promptly will advise Indemnitee in writing with respect to any determination
that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification
has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within
ten (10) days after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys’ fees
and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall
be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company
hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

    	 	8	 

     

    

 

12.2. In the event the determination of entitlement
to indemnification is to be made by Independent Counsel pursuant to Section 12.1 hereof, the Independent Counsel shall be
selected as provided in this Section 12.2. The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall
request that such selection be made by the Board), and Indemnitee shall give written notice to the Company advising it of the identity
of the Independent Counsel so selected and certifying that the Independent Counsel so selected meets the requirements of “Independent
Counsel” as defined in Section 2 of this Agreement. If the Independent Counsel is selected by the Board, the Company
shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected and certifying that
the Independent Counsel so selected meets the requirements of “Independent Counsel” as defined in Section 2
of this Agreement. In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written
notice of selection shall have been received, deliver to the Company or to Indemnitee, as the case may be, a written objection
to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected
does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected
shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may
not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined
that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification
pursuant to Section 11.1 hereof, no Independent Counsel shall have been selected and not objected to, either the Company
or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee
to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by
the Delaware Court, and the person with respect to whom all objections are so resolved or the person so appointed shall act as
Independent Counsel under Section 12.1 hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant
to Section 14.1 of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in
such capacity (subject to the applicable standards of professional conduct then prevailing).

 

12.3. The Company agrees to pay the reasonable
fees and expenses of Independent Counsel and to fully indemnify and hold harmless such Independent Counsel against any and all
Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

    	 	9	 

     

    

 

13. PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS.

 

13.1. In making a determination with respect
to entitlement to indemnification hereunder, the person, persons or entity making such determination shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
Section 11.2 of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection
with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the
Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action
pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has
not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met
the applicable standard of conduct.

 

13.2. If the person, persons or entity empowered
or selected under  Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not
have made a determination within thirty (30) days after receipt by the Company of the request therefor, the requisite determination
of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent
(i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement
not materially misleading, in connection with the request for indemnification, or (ii) a final judicial determination that any
or all such indemnification is expressly prohibited under applicable law; provided, however, that such 30-day period may be
extended for a reasonable time, not to exceed an additional fifteen (15) days, if the person, persons or entity making the determination
with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation
and/or information relating thereto.

 

13.3. The termination of any Proceeding or of
any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent,
shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification
or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not
opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause
to believe that his or her conduct was unlawful.

 

13.4. For purposes of any determination of good
faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of
account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers
of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise, its Board, any committee
of the Board or any director, or on information or records given or reports made to the Enterprise, its Board, any committee of
the Board or any director, by an independent certified public accountant or by an appraiser or other expert selected by the Enterprise,
its Board, any committee of the Board or any director. The provisions of this Section 13.4 shall not be deemed to be exclusive
or to limit in any way the other circumstances in which the Indemnitee may be deemed or found to have met the applicable standard
of conduct set forth in this Agreement.

 

13.5. The knowledge and/or actions, or failure
to act, of any other director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall
not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

    	 	10	 

     

    

 

14. REMEDIES OF INDEMNITEE.

 

14.1. In the event that (i) a determination
is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement,
(ii) advancement of Expenses, to the fullest extent permitted by applicable law, is not timely made pursuant to Section 10
of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12.1
of this Agreement within thirty (30) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification
is not made pursuant to Sections 5, 6, 7 or the last sentence of Section 12.1 of this Agreement within
ten (10) days after receipt by the Company of a written request therefor, (v) a contribution payment is not made in a timely manner
pursuant to Section 8 of this Agreement, (vi) payment of indemnification pursuant to Section 3 or 4 of this
Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification,
or (vii) payment to Indemnitee pursuant to any hold harmless or exoneration rights under this Agreement or otherwise is not made
within ten (10) days after receipt by the Company of a written request therefor, Indemnitee shall be entitled to an adjudication
by the Delaware Court to such indemnification, hold harmless, exoneration, contribution or advancement rights. Alternatively, Indemnitee,
at his or her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration
Rules of the American Arbitration Association. Except as set forth herein, the provisions of Delaware law (without regard to its
conflict of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any
such adjudication or award in arbitration.

 

14.2. In the event that a determination shall
have been made pursuant to Section 12.1 of this Agreement that Indemnitee is not entitled to indemnification, any judicial
proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial, or
arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding
or arbitration commenced pursuant to this Section 14, Indemnitee shall be presumed to be entitled to be indemnified, held
harmless, exonerated to receive advances of Expenses under this Agreement and the Company shall have the burden of proving Indemnitee
is not entitled to be indemnified, held harmless, exonerated and to receive advances of Expenses, as the case may be, and the Company
may not refer to or introduce into evidence any determination pursuant to Section 12.1 of this Agreement adverse to Indemnitee
for any purpose. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 14, Indemnitee shall
not be required to reimburse the Company for any advances pursuant to Section 10 until a final determination is made with
respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).

 

14.3. If a determination shall have been made
pursuant to Section 12.1 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by
such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable
law.

 

    	 	11	 

     

    

 

14.4. The Company shall be precluded from asserting
in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of
this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that
the Company is bound by all the provisions of this Agreement.

 

14.5. The Company shall indemnify and hold harmless
Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within ten (10)
days after the Company’s receipt of such written request) pay to Indemnitee, to the fullest extent permitted by applicable
law, such Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration brought by Indemnitee
(i) to enforce his rights under, or to recover damages for breach of, this Agreement or any other indemnification, hold harmless,
exoneration, advancement or contribution agreement or provision of the Charter, or the Company’s Bylaws now or hereafter
in effect; or (ii) for recovery or advances under any insurance policy maintained by any person for the benefit of Indemnitee,
regardless of the outcome and whether Indemnitee ultimately is determined to be entitled to such indemnification, hold harmless
or exoneration right, advancement, contribution or insurance recovery, as the case may be (unless such judicial proceeding or arbitration
was not brought by Indemnitee in good faith).

 

14.6. Interest shall be paid by the Company
to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies, holds harmless or exonerates, or
is obliged to indemnify, hold harmless or exonerate for the period commencing with the date on which Indemnitee requests indemnification,
to be held harmless, exonerated, contribution, reimbursement or advancement of any Expenses and ending with the date on which such
payment is made to Indemnitee by the Company.

 

15. SECURITY. Notwithstanding anything herein to the
contrary, to the extent requested by the Indemnitee and approved by the Board, the Company may at any time and from time to time
provide security to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded
trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without the prior
written consent of the Indemnitee.

 

16. NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE; SUBROGATION.

 

16.1. The rights of Indemnitee as provided by
this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable
law, the Charter, the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.
No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee
under this Agreement in respect of any Proceeding (regardless of when such Proceeding is first threatened, commenced or completed)
arising out of, or related to, any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment,
alteration or repeal. To the extent that a change in applicable law, whether by statute or judicial decision, permits greater indemnification,
hold harmless or exoneration rights or advancement of Expenses than would be afforded currently under the Charter, the Company’s
Bylaws or this Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed
to be amended to require that the Company indemnify Indemnitee to the fullest extent permitted by law. No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion
or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
right or remedy.

 

    	 	12	 

     

    

 

16.2. The DGCL, the Charter and the Company’s
Bylaws permit the Company to purchase and maintain insurance or furnish similar protection or make other arrangements including,
but not limited to, providing a trust fund, letter of credit, or surety bond (“Indemnification Arrangements”)
on behalf of Indemnitee against any liability asserted against him or incurred by or on behalf of him or in such capacity as a
director, officer, employee or agent of the Company, or arising out of his status as such, whether or not the Company would have
the power to indemnify him against such liability under the provisions of this Agreement or under the DGCL, as it may then be in
effect. The purchase, establishment, and maintenance of any such Indemnification Arrangement shall not in any way limit or affect
the rights and obligations of the Company or of the Indemnitee under this Agreement except as expressly provided herein, and the
execution and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights and
obligations of the Company or the other party or parties thereto under any such Indemnification Arrangement.

 

16.3. The Company shall maintain an insurance
policy or policies providing liability insurance for directors, officers, trustees, partners, managing members, fiduciaries, employees,
or agents of the Company or of any other Enterprise which such person serves at the request of the Company, Indemnitee shall be
covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any
such director, officer, trustee, partner, managing member, fiduciary, employee or agent under such policy or policies. If, at the
time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness
or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such
Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such Proceeding in accordance with the terms of such policies.

 

16.4. In the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary
to enable the Company to bring suit to enforce such rights.

 

    	 	13	 

     

    

 

16.5. The Company’s obligation to indemnify,
hold harmless, exonerate or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director,
officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise shall be reduced by any amount
Indemnitee has actually received as indemnification, hold harmless or exoneration payments or advancement of expenses from such
Enterprise. Notwithstanding any other provision of this Agreement to the contrary, (i) Indemnitee shall have no obligation to reduce,
offset, allocate, pursue or apportion any indemnification, hold harmless, exoneration, advancement, contribution or insurance coverage
among multiple parties possessing such duties to Indemnitee prior to the Company’s satisfaction and performance of all its
obligations under this Agreement, and (ii) the Company shall perform fully its obligations under this Agreement without regard
to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, hold harmless, exoneration, contribution
or insurance coverage rights against any person or entity other than the Company.

 

17. DURATION OF AGREEMENT. All agreements and obligations
of the Company contained herein shall continue during the period Indemnitee serves as a director or officer of the Company or as
a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other corporation, partnership, joint
venture, trust, employee benefit plan or other Enterprise which Indemnitee serves at the request of the Company and shall continue
thereafter so long as Indemnitee shall be subject to any possible Proceeding (including any rights of appeal thereto and any Proceeding
commenced by Indemnitee pursuant to Section 14 of this Agreement or commenced after the Indemnitee no longer serves in any
capacity listed in this sentence) by reason of his Corporate Status, whether or not he is acting in any such capacity at the time
any liability or expense is incurred for which indemnification can be provided under this Agreement.

 

18. SEVERABILITY. If any provision or provisions of
this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph
or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent
permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law
and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested thereby.

 

19. ENFORCEMENT AND BINDING EFFECT.

 

19.1. The Company expressly confirms and agrees
that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve
as a director, officer or key employee of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement
in serving as a director, officer or key employee of the Company.

 

19.2. Without limiting any of the rights of
Indemnitee under the Charter or Bylaws of the Company as they may be amended from time to time, this Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral, written and implied, between the parties hereto with respect to the subject matter hereof.

 

    	 	14	 

     

    

 

19.3. The indemnification,
hold harmless, exoneration and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding
upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor
by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue
as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise at the
Company’s request, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors
and administrators and other legal representatives.

 

19.4. The Company shall require and cause any
successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to the Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required
to perform if no such succession had taken place.

 

19.5. The Company and Indemnitee agree herein
that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof,
and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee
may enforce this Agreement by seeking, among other things, injunctive relief and/or specific performance hereof, without any necessity
of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall
not be precluded from seeking or obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree
that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary
injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The
Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a Court of competent
jurisdiction and the Company hereby waives any such requirement of such a bond or undertaking.

 

20. MODIFICATION AND WAIVER. No supplement, modification
or amendment of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions
of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute
a continuing waiver.

 

21. NOTICES. All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed to have been duly given (i) if delivered by hand and
receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or
registered mail with postage prepaid, on the third (3rd) business day after the date on which it is so mailed:

 

		(a)	If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other
address as Indemnitee shall provide in writing to the Company.

 

		(b)	If to the Company, to:

 

Hydra Industries Acquisition Corp.

3 Columbus Circle

16th Floor

 

    	 	15	 

     

    

 

New York, NY 10019

Attn: Martin E. Schloss

 

With a copy, which shall not constitute notice, to:

 

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, NY 10036

Attn: Peter G. Smith

 

or to any other address as may have been furnished to Indemnitee
in writing by the Company.

 

22. APPLICABLE LAW AND CONSENT TO JURISDICTION. This
Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws
of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee
pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally: (a) agree
that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court and
not in any other state or federal court in the United States of America or any court in any other country; (b) consent to submit
to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with
this Agreement; (c) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court; and (d)
waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought
in an improper or inconvenient forum, or is subject (in whole or in part) to a jury trial.

 

23. IDENTICAL COUNTERPARTS. This Agreement may be
executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together
shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought
needs to be produced to evidence the existence of this Agreement.

 

24. MISCELLANEOUS. Use of the masculine pronoun shall
be deemed to include usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

25. PERIOD OF LIMITATIONS. No legal action shall be
brought and no cause of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s spouse,
heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause
of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely
filing of a legal action within such two-year period; provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action such shorter period shall govern.

 

    	 	16	 

     

    

 

26. ADDITIONAL ACTS. If for the validation of any
of the provisions in this Agreement any act, resolution, approval or other procedure is required, the Company undertakes to cause
such act, resolution, approval or other procedure to be affected or adopted in a manner that will enable the Company to fulfil
its obligations under this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Indemnity Agreement to be signed as of the day and year first above written.

 

	 	HYDRA INDUSTRIES
	 	ACQUISITION CORP. 
	 	 
	 	By: 
	 	 
	 	 
	 	Name:
	 	Title:
	 	 
	 	INDEMNITEE
	 	 
	 	 
	 	Name:
	 	Address:

 

[Signature Page to Indemnity Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}]]