Document:

Exhibit 10.46

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (the "Agreement") is made and entered into by and between VG ENERGY, INC., a Delaware corporation (the
"Employer"), and Haig Keledjian, ("Employee") effective the 1st day of January 2011 (the "Effective
Date").

 

(the Employer and Employee are jointly referred to herein as
the "Parties")

 

WHEREAS, Employer
is a company engaged in the business of researching, developing and distributing metabolic disruption products and technology with
applications in biofuel and agricultural oil production; and

 

WHEREAS, Employee has been employed
in and has experience in the Employer's business; and

 

WHEREAS, the
Employer desires to provide for the employment of Employee, to clearly set forth the relationship between the parties, and to restrict
Employee from using certain confidential information and from competing with the Employer in the future.

 

NOW THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows.

 

1) Non-Exclusive
Employment of Employee; Term. The Employer hereby engages Employee as its nonexclusive provider of the Employment services
described in this Agreement, for a term which will commence on the date of this Agreement and end December 31, 2015.

 

2) Duties.
Employer hereby employs Employee to, at an executive officer level position, manage Employer as chief executive officer and
president. To facilitate the performance of his duties, Employee shall be designated "Chief Executive Officer and President."
Employee agrees to serve from time to time at the pleasure of the board of directors in such additional and/or other offices or
positions with Employer as shall be determined by Employer's board of directors, without compensation except as set forth herein.
Employee shall devote sufficient working time and efforts to the business of Employer. Employee shall not during the term of this
Agreement be engaged in any other substantial business activities which will significantly interfere or conflict with the performance
of his duties hereunder, provided that Employee is hereby permitted to act as Chief Executive Officer and President of Viral Genetics,
Inc., a Delaware corporation, under an Employment Agreement of even date herewith.

 

3) Facilities.
Employer will provide to Employee at suitable offices and facilities appropriate for his position and suitable for the performance
of his responsibilities

 

4) Reasonable
Best Efforts. Employee agrees that he will at all times faithfully, industriously, and to the reasonable best of his abilities,
experience, and talents, perform all of the duties that may be required of and from his pursuant to the express and explicit terms
hereof.

 

5) Term.
The term of this Agreement shall be for the period commencing on the Effective Date and continuing through December 31, 2015
(the "Initial Term). This Agreement may be renewed for successive one-year terms upon the agreement of the Employer and Employee
to renew this Agreement. For all purposes of this Agreement, including for purposes of applying the renewal provisions of this
paragraph to any term subsequent to the term then being extended, the Expiration Date shall mean December 31, 2015 for the Initial
Term hereof or December 31 at the end of any one-year renewal term, as the case may be.

 

 

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6) Compensation. 

		a)	Salary. Employer shall pay to Employee a base salary of $97,500 per
annum payable in accordance with the payroll procedures established by Employer. Such salary shall be subject to an annual review
and may be increased, but not decreased, by the Company's board of directors. The salary to Employee and all other compensation
and benefits hereunder shall be subject to withholding and other applicable taxes. Earned but unpaid Fees due hereunder shall automatically
and without a requirement for notice or consent by either party accrue under the Convertible Note attached hereto as Exhibit A.

		b)	Options. For and in consideration of the agreement of the Employee
to enter into this Agreement and as an incentive for the Employee to use his best efforts in pursuit of the Company's business,
concurrently with the execution of this Agreement the Employer and Employee shall enter into an option agreement for a bonus of
1,200,000 options in the form attached hereto as Exhibit B (the "Initial Option"). On each annual anniversary during
the Initial Term and each subsequent one-year extension period as described in paragraph 5, if any, Employer shall grant an additional
option of similar tenor but in an amount equal to not less than 300,000 options (each an "Annual Option"). The exercise
price of each Annual Option shall be based on the fair market value of Employer's fully-diluted common shares as determined by
the board of directors of Employer on January 1 of each such year, provided that in the event that the common shares of Employer
are quoted for trading on a recognized trading market the exercise price shall be equal to the volume weighted average price ("VWAP")
for the twenty (20) trading days up to and including January 1 of such year.

		c)	Benefits, Other Consideration. Employee shall be entitled to participate
in all of Employer's benefit plans, which may include, but are not limited to, long-term disability insurance, medical, dental,
life insurance, retirement, pension, profit sharing, or other plan as in effect from time to time on the same basis as other employees
and/or as appropriate for Employee's position.

		d)	Reimbursement of Expenses. The Employer shall reimburse all expenses
incurred by Employee in the performance of the Services.

		e)	Vacations, Sick Days, Holidays. Employee shall be entitled each year
to a paid vacation of at least ten (10) working days. Vacation shall be taken by Employee at times and with starting and ending
dates determined by Employee taking into account the reasonable needs of Employer. Vacation or portions of vacations not used in
one employment year shall carry over to the succeeding employment year, but shall thereafter expire if not used within such succeeding
year.

 

7) Employer Representations
and Warranties. The Employer hereby represents and warrants, knowing that Employee is relying thereon, that:

		a)	The Employer is duly organized, validly existing and in good standing under
the laws of the state of Delaware. The Employer is qualified to do business as a foreign corporation in each state in which its
business requires it to be so qualified.

		b)	All shares issuable upon exchange of salary and, upon receipt of the full
exercise price, where applicable, all shares issued to Employee under options will be duly and validly issued, fully paid and non-assessable,
and will be delivered free and clear of any liens, claims or encumbrances, except for restrictions imposed by reference to the
registration requirements of the Securities Act of 1933.

 

 

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8) Employee Representations.
Employee hereby represents, knowing that the Employer is relying thereon, that:

		a)	Employee is an Accredited Investor, as that term is defined in Regulation
D in the Securities Act, 1933, and Employee has completed the attached Exhibit C, or, in lieu of this, Employee agrees that the
Option and Shares shall only be issued immediately if and when an appropriate exemption from registration exists or an effective
registration statement is available;

		b)	Employee has not in the past, nor will he in the future engage in any activity
contrary to the securities laws of any jurisdiction including, without limitation, those of the United States of America; and

		c)	Employee has read and accepted the VG Energy, Inc. Intellectual Property
Agreement, attached hereto as Exhibit D, which is part of this Agreement and the provisions of which shall survive the expiration
or earlier termination of this Agreement in strict accordance with the time periods as described therein.

 

9) Changes to Common Stock.
In the event that the Employer shall undertake a recapitalization, reverse stock split, forward stock split, reclassification,
or other change to its common stock (a "Change in Common Stock Properties"), the quantity of shares which may be acquired
through exercise of any delivered but unexercised options or undelivered options, and the exercise price payable thereto shall
be increased or decreased proportionately, in accordance with the terms of said Change in Common Stock Properties.

 

10) Extension and Renewal.
The Term may be extended or renewed, and this Agreement may be amended, only by the written agreement of the parties.

 

11) Indemnification.

		a)	The Employer hereby indemnifies and defends the Employee and each of his executors, heirs, assigns,
and representatives, as applicable, (each, an "Indemnitee") against, and holds each Indemnitee harmless from, any loss,
liability, obligation, deficiency, damage or expense including, without limitation, interest, penalties, reasonable attorneys'
fees and disbursements (collectively, "Damages"), that any Indemnitee may suffer or incur based upon, arising out of,
relating to or in connection with (whether or not in connection with any third party claim):

		i)	any breach of any representation or warranty made by the Employer contained in this Agreement;

		ii)	the failure of the Employer to perform or to comply with any covenant or condition required to
be performed or complied with in accordance with this Agreement; and

		iii)	the good faith performance of the Services.

		b)	Indemnification Procedures for Third Party Claims.

		i)	Promptly after notice to an Indemnitee of any claim or the commencement of any action or proceeding,
including any actions or proceedings by a third party (hereafter referred to as "Proceeding" or "Proceedings"),
involving any Damage referred to in this Section, such Indemnitee shall, if a claim for indemnification in respect thereof is to
be made against an Indemnitee pursuant to this Section, give written notice to the Employer, setting forth in reasonable detail
the nature thereof and the basis upon which such party seeks indemnification hereunder; provided, however, that the failure of
any Indemnitee to give such notice shall not relieve the Employer of its obligations hereunder, except to the extent that the Employer
is actually prejudiced by the failure to give such notice.

 

 

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		ii)	In the case of any Proceeding by a third party against an Indemnitee, the Employer shall, upon
notice as provided above, assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee, and, after notice
from the Employer to the Indemnitee of its assumption of the defense thereof, the Employer shall not be liable to such Indemnitee
for any legal or other expenses subsequently incurred by the Indemnitee in connection with the defense thereof (but the Indemnitee
shall have the right, but not the obligation, to participate at its own cost and expense in such defense by counsel of its own
choice) or for any amounts paid or foregone by the Indemnitee as a result of any settlement or compromise thereof that is effected
by the Indemnitee (without the written consent of the Employer).

		iii)	Anything in this Section 12 notwithstanding, if both the Employer and the Indemnitee are named
as parties or subject to such Proceeding and either party determines with advice of counsel that there may be one or more legal
defenses available to it that are different from or additional to those available to the other party or that a material conflict
of interest between such parties may exist in respect of such Proceeding, then the Employer may decline to assume the defense on
behalf of the Indemnitee or the Indemnitee may retain the defense on its own behalf, and, in either such case, after notice to
such effect is duly given hereunder to the other party, the Employer shall be relieved of its obligation to assume the defense
on behalf of the Indemnitee, but shall be required to pay any legal or other expenses including, without limitation, reasonable
attorneys' fees and disbursements, incurred by the Indemnitee in such defense.

		iv)	If the Employer assumes the defense of any such Proceeding, the Indemnitee shall cooperate fully
with the Employer and shall appear and give testimony, produce documents and other tangible evidence, and otherwise assist the
Employer in conducting such defense. The Employer shall not, without the consent of the Indemnitee, consent to entry of any judgment
or enter into any settlement or compromise which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnitee of a release from all liability in respect of such claim or Proceeding. Provided that proper notice
is duly given, if the Employer shall fail promptly and diligently to assume the defense thereof, then the Indemnitee may respond
to, contest and defend against such Proceeding and may make in good faith any compromise or settlement with respect thereto, and
recover from the Employer the entire cost and expense thereof including, without limitation, reasonable attorneys' fees and disbursements
and all amounts paid or foregone as a result of such Proceeding, or the settlement or compromise thereof. The indemnification required
hereunder shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when
bills or invoices are received or loss, liability, obligation, damage or expense is actually suffered or incurred.

 

		c)	The provisions of this Section 11 shall survive the expiration or earlier termination of this Agreement.

 

12.
Termination. Except where due to the death of Employee, Employer may not terminate this Agreement during its term without
cause. Employee may terminate this agreement at any time during the term hereof. As used herein, cause shall mean that:

 

(a)              Employee has
materially breached in a manner injurious to the Employer the terms of this Agreement (other than as described in subparagraphs
(b) and (c) of this paragraph 13), and such breach has not been cured within 30 days following the date of written notice to Employee
of such breach;

 

 

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(b)               Employee has been grossly negligent in
the performance of his duties at least three times in any consecutive
90-day period;

 

(c)               Employee has employed in material and willful or gross misconduct in the performance of his duties hereunder;

 

(d)               Employee is convicted or pleads nolo contendre with respect to any criminal offense other than misdemeanor traffic violations;

 

(e)               Employee violates the Employer's Code of Ethics, or such other governance standards as are adopted by the Employer from
time to time; or

 

(f)                Employee is found by a court of competent jurisdiction to have committed any act or employed in any conduct that is fraudulent,
or Employee becomes the subject of a civil or criminal proceeding or investigation relating to securities fraud, including, without
limitation, proceedings initiated by the National Association of Securities Dealers, and the United States Securities and Exchange
Commission.

 

(c)               Employee
has employed in material and willful or gross misconduct in the performance of his duties hereunder;

 

(d)               Employee
is convicted or pleads nolo contendre with respect to any criminal offense other than misdemeanor traffic violations;

 

(e)               Employee
violates the Employer's Code of Ethics, or such other governance standards as are adopted by the Employer from time to time;
or

 

(f)                Employee
is found by a court of competent jurisdiction to have committed any act or employed in any conduct that is fraudulent, or
Employee becomes the subject of a civil or criminal proceeding or investigation relating to securities fraud, including,
without limitation, proceedings initiated by the National Association of Securities Dealers, and the United States Securities
and Exchange Commission.

 

13. Termination Payment.

(a)               
In the event that the Employee's employment is terminated (i) by the Employer for reasons other than cause as defined in
paragraph 12, or (ii) is terminated by Employee for good reason (as hereinafter defined), the Employee shall be compensated by
the Employer through (x) a single sum payment due within 30 days after such termination in an amount equal to the annual Salary
provided for in paragraph 6(a) above in effect as of the date of termination and payable in cash or, at Employee's election, in
stock as determined under Section 6(a) above, and (y) the minimum number of all options that would be due to Employee during the
Initial Term had the Agreement not been terminated or, in the case of a subsequent one-year extension, the Annual Option due for
that year, provided that the exercise price of all such options shall be determined using the VWAP as of the effective date of
termination.

 

(b)               In
the event that the Employee's employment is terminated by the Employee at any time during the term hereof for any reason
other than good reason or is terminated by the Employer during the term hereof for cause as provided in paragraph 12,
Employee shall be entitled to receive only that compensation due and payable hereunder with respect to periods ended on or
before the date of termination including options for the current year.

 

(c)                As
used in this Agreement, termination for "good reason" shall mean termination by the Employee in the following
circumstances: (i) a material breach by Employer of this Agreement, and such breach has not been cured within 30 days
following the date of written notice to Employer of such breach; (ii) any "person", including a
"group" as determined in accordance with Section 13(d)(3) of the Securities Exchange Act of 1934 and the Rules and
Regulations promulgated thereunder (other than the Employer, a subsidiary of the Employer, or Affiliates of the Employer as
of the date affixed hereof, as that term is promulgated by the Securities and Exchange Commission) is or becomes, through one
or a series of related transactions or through one or more intermediaries, the beneficial owner, directly or indirectly, of
securities of the Employer representing 50.1 percent or more of the combined voting power of the then outstanding securities
of the Employer; or (iii) any merger or reorganization of the Employer whether or not another entity is the survivor,
pursuant to which the holders of all of the shares of the Employer outstanding prior to the transaction hold, as a group,
less than 50.1 percent of the combined voting power of the Employer or any successor company outstanding after the
transaction.

 

 

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14)  Cooperation.
The parties shall deal with each other in good faith, good faith meaning honesty in fact and the observance of all commercial
standards of fair dealing and usages of trade, which are regularly observed within the industry.

 

15) No
Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of strict construction shall be applied against any party.

 

16) Arbitration.
Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration
administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. If the parties agree,
there shall be one arbitrator; otherwise there shall be a panel of three arbitrators. The cost of arbitration shall be borne by
the Client. Judgment upon the reward rendered may be entered in any court having jurisdiction thereof.

 

17) 
Governing Law and Disputes. This Agreement shall be governed by the laws of the State of California, without regard
to choice of law provisions.

 

18) Waiver.
Any party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein; provided,
however, that any such waiver shall be in writing specifically setting forth those provisions waived thereby. No such waiver shall
be deemed to constitute or imply waiver of any other term, provision or condition of this Agreement.

 

19) Severability.
If and to the extent that any court of competent jurisdiction holds any provision or any part thereof of this Agreement to
be invalid or unenforceable, such holding shall in no way affect the validity of the remainder of this Agreement.

 

20) Counterpart
and Headings. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all
of which together shall constitute one and the same instrument. All headings in this Agreement are inserted for convenience of
reference and shall not affect its meaning or interpretation.

 

21) Entire
Agreement. This Agreement is and shall be considered to be the only agreement or understanding between the parties hereto
with respect to the employment of Employee by the Employer. All negotiations, commitments, and understandings acceptable to both
parties have been incorporated herein. No letter, telegram, or communication passing between the parties hereto shall be deemed
a part of this Agreement; nor shall it have the effect of modifying or adding to this Agreement unless it is distinctly stated
in such letter, telegram, or communication that it is to constitute a part of this Agreement and is to be attached as a rider
to this Agreement and is signed by the parties to this Agreement.

 

22) Modification
of Contract. This Agreement cannot be modified by tender, acceptance or endorsement of any instrument of payment, including
check. Any words contained in an instrument of payment modifying this contract, including a waiver or release of any claims, or
a statement referring to paying in full is void. This Agreement can only be modified in a separate writing, other than an instrument
of payment, signed by the parties.

 

 

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23) Enforcement.
Employee acknowledges that any remedy at law for breach of Exhibit
D would be inadequate, acknowledges that the Employer would be irreparably damaged by an actual or threatened breach thereof,
and agrees that the Employer shall be entitled to an injunction restraining Employee from any actual or threatened breach of Exhibit
D as well as any further appropriate equitable relief without any bond or other security being required. The Employer may pursue
enforcement of Exhibit D by commencing an action at law or in equity without first pursuing arbitration pursuant to Section 16
of this Agreement. In addition to the foregoing, each of the parties hereto shall be entitled to any remedies available
in equity or by statute with respect to the breach of the terms of this Agreement by the other party.

 

24) Assignment.
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective
heirs, legal representatives, successors and assigns. This Agreement may not be assigned without the consent of the parties; provided,
however, that nothing contained herein shall prevent Employee from assigning or transferring any of the Shares or options to any
person or entity in accordance with applicable securities laws and regulations.

 

25) Notices.
All notices under this Agreement shall be in writing and shall be sent by certified or registered first class mail, return
receipt requested, or shall be personally delivered, or sent by an overnight delivery service such as Federal Express, or shall
be transmitted by telefax (provided such telefax message is confirmed by telephonic acknowledgment of receipt or by sending via
other authorized means a confirmation copy of such notice) addressed to the parties at their respective last known business addresses.

 

Agreed to effective the 1st day of January
2011

 

	VG ENERGY, INC.	 	HAIG KELEDJIAN
	 	 	 
	 	 	 
	By:    /s/ Haig
    Keledjian             	 	     /s/ Haig Keledjian               
	Haig Keledjian, President	 	Haig Keledjian

 

 

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EXHIBIT A

 

UNSECURED REVOLVING CREDIT NOTE

 

FOR VALUE RECEIVED,
VG Energy, Inc., whose address is 2290 Huntington Drive, Suite 100, San Marino, California, 91108, ("Borrower"),
promises to pay to or to the order of Haig Keledjian ("Lender"), and his successors and assigns, in lawful money
of the United States of America, those amounts that are unpaid, due and payable to Lender pursuant to Fees earned under the Employment
Agreement between Borrower and Lender dated effective January 1, 2011 to which this Note is attached (the "Agreement"),
and which such amounts are tendered hereunder pursuant to Section 6 (a) of the Agreement, without interest. No additional amounts
may be tendered hereunder except for amounts due under the Agreement. This Note, the Agreement and all schedules and exhibits attached
thereto are hereinafter referred to as the Transaction Documents.

 

		1.	               Payment and Advance Terms.

 

		(a)	                         Payment. Borrower shall pay to Lender the entire principal balance under this Unsecured
Revolving Credit Note (the "Note") on or before December 31, 2015 (the "Maturity Date"). Borrower shall pay
all amounts due under this Note in lawful money of the United States of America and without set-off, deduction, demand or notice.

 

		(b)	                         Exchange of Loan Obligation. All or any portion of the then outstanding principal of this
Note ("Exchanged Amount") may be exchanged for shares of Borrower's common stock ("Shares") at the election
of the Lender at any time prior to the Maturity Date by Lender giving written notice to Borrower in the form attached as Annex
A. In exchange for the Exchanged Amount so exchanged, Lender shall receive a number of Shares equal to the Exchanged Amount divided
by the Exchange Price. The Exchange Price shall be equal to the volume-weighted average closing price of the Borrower's common
stock for the 20 trading days immediately prior to the date of notice by Lender Date (the "Exchange Date") as reported
on the NASD OTCBB, Pinksheets, or other market where Borrower's common stock is then quoted for trading multiplied by 0.8, provided
that in the event no such quoted market exists, the Exchange Price shall be determined according to an independent appraisal ratified
by the disinterested members of the Borrower's board of directors, or if there are no disinterested members then the board acting
unanimously. An election made by the Lender to exchange amounts owed hereunder for Shares cannot be revoked by Lender without the
written consent of Borrower. The Borrower shall issue and deliver to the Lender the Shares within 5 business days of receiving
notice from Lender. Should such Notice of Conversion represent all of the remaining obligations due hereunder, Lender shall deliver
to Borrower the original Note marked "paid in full."

 

		(c)	                         Mandatory Conversion. Any unpaid principal due hereunder upon the Maturity Date shall automatically
be exchanged for Shares upon the terms described in Section 1(b) above using the Maturity Date as the Exchange Date, without requiring
the additional consent of Lender or Borrower.

 

		2.	               Interest. This Note shall not bear interest.

 

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		3.	              Application of Payments. Payments will be applied first to any costs and expenses (including
reasonable attorneys' fees) incurred by Lender in connection with the collection of amounts owing pursuant to this Unsecured Revolving
Credit Note, and then to reduction of principal. All payments shall be made to Lender at the above-specified address until receipt
of notice from Lender to the contrary.

 

		4.	               Default Rate. Upon the occurrence of an Event of Default, Lender shall be entitled to receive,
and Borrower shall pay to Lender, interest on the outstanding principal balance and any other advances or charges advanced by Lender
at a per annum rate equal to the lesser of (a) twelve percent (12%), or (b) the maximum interest rate which Borrower may by law
pay (the "Default Rate"). The Default Rate shall be computed from the occurrence of the Event of Default until
the earlier of the date upon which the Event of Default is cured or the date upon which due an owing under this Note are paid in
full. The preceding sentence, however, shall not be construed as an agreement or privilege to extend the date of the any payment
due hereunder, or as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default.

 

		5.	               Prepayment. Borrower shall have the right to prepay this Note in whole or in part by providing
30 calendar days advance written notice to Lender. During this period and until the end of the 30 day notice period, Lender may
at its sole discretion elect to exercise the exchange rights provided for in Section 1 (b) herein.

 

		6.	               Security Interest. This Note is Unsecured.

 

		7.	               Default. Any one of the following occurrences shall constitute an "Event of Default"
under this Unsecured Revolving Credit Note provided that Lender shall be required to give written notice of same:

 

		(a)	                         The failure of Borrower to repay all outstanding principal on or before
the Maturity Date;

 

		(b)	                         The failure of Borrower to promptly perform any obligation of Borrower under
or the existence of an Event of Default as defined in any Transaction Document within thirty (30) days of notice from Lender; or

 

		(c)	                         Borrower becomes insolvent, bankrupt or generally fails to pay its debts
as such debts become due; is adjudicated insolvent or bankrupt; admits in writing its inability to pay its debts; or shall suffer
a custodian, receiver or trustee for it or substantially all of its property to be appointed and if appointed without its consent,
not be discharged within sixty (60) consecutive days; makes an assignment for the benefit of creditors; or suffers proceedings
under any law related to bankruptcy, insolvency, liquidation or the reorganization, readjustment or the release of debtors to be
instituted against it and if contested by it not dismissed or stayed within sixty (60) consecutive days; if proceedings under any
law related to bankruptcy, insolvency, liquidation, or the reorganization, readjustment or the release of debtors is instituted
or commenced by or against Borrower; if any order for relief is entered relating to any of the foregoing proceedings; if Borrower
shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; or if Borrower shall by
any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing.

 

 

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		8.	               Remedies. Upon the happening and during the continuation of any Event of Default, (i) Lender
may, at its sole option, declare the entire principal immediately due and payable in full; (ii) interest shall accrue on all amounts
due hereunder at the Default Rate until paid in full or such Event of Default is cured; and (iii) Lender shall have and may exercise
any and all rights and remedies available hereunder, at law and in equity, together with any and all rights and remedies provided
in any Transaction Document. The acceptance of any installment or payment after the occurrence of an Event of Default or event
giving rise to the right of acceleration provided for herein shall not constitute a waiver of such right of acceleration with respect
to such Event of Default or event or any subsequent Event of Default. The remedies of Lender, as provided herein or in any Transaction
Document, shall be cumulative and concurrent, and may be pursued singularly, successively or together, at the sole discretion of
Lender, and may be exercised as often as occasion therefore shall arise. Any act, omission or commission of Lender, including,
specifically, any failure to exercise any right, remedy or recourse, shall be released and be effected only through a written document
executed by Lender and then only to the extent specifically recited therein. A waiver or release with reference to any one event
shall not be construed as continuing, as a bar to, or as a waiver or release of, any subsequent right, remedy or recourse as to
a subsequent event.

 

		9.	               Collection
                                                                Costs. If one or more Events of Default (or any event which with notice or passage of time or both would constitute an
                                                                Event of Default) hereunder shall occur and continues, Borrower promises to pay all collection costs, including but not
                                                                limited to all reasonable attorneys' fees, court costs, and expenses of every kind, incurred by Lender in connection with
                                                                such collection or the protection or enforcement of any or all of the security for this Unsecured Revolving Credit Note,
                                                                whether or not any lawsuit is filed with respect thereto (including costs and reasonable attorneys' fees on any appeals or in
                                                                any bankruptcy proceedings).

 

		10.	               Miscellaneous.

 

		(a)	                         Successors and Assigns. This Note inures to the benefit of Lender and its successors or
assigns, and binds Borrower, and its respective permitted successors and assigns, and the words "Lender" and "Borrower"
whenever occurring herein shall be deemed and construed to include such respective successors and assigns.

 

		(b)	                         Severability. Any term or provision of this Note that is held by a court of competent jurisdiction
or other authority to be invalid, void or unenforceable in any situation or in any jurisdiction shall not affect the validity or
enforceability of the remaining terms and provisions or the validity or enforceability of the invalid, void or unenforceable term
or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction or
other authority declares that any term or provision of this Note is invalid, void or unenforceable, the parties agree that the
court making such determination shall have the power to and shall, subject to the discretion of such court, reduce the scope, duration,
area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void 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.

 

		(c)	                         Waiver. To the fullest extent permitted by law, Borrower hereby waives all valuation and
appraisement privileges, presentment and demand for payment, protest, notice of protest and nonpayment, dishonor and notice of
dishonor, bringing of suit, lack of diligence or delays in collection or enforcement of this Note and notice of the intention to
accelerate, the release of any liable party, the release of any security for the indebtedness evidenced hereby, and any other indulgence
or forbearance, and is and shall be directly and primarily liable for the amount of all sums owing and to be owed hereon, and agrees
that this Note and any or all payments coming due hereunder may be extended or renewed from time to time without in any way affecting
or diminishing Borrower's liability hereunder.

 

 

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		(d)	                         Notices. All notices required to be given to any of the parties hereunder shall be in writing
and shall be delivered (a) by personal delivery, with receipt acknowledged; (b) by telecopier or electronic mail (with original
copy to follow as set forth herein); (c) by reputable overnight commercial courier service; or (d) by United States registered
or certified mail, return receipt requested, postage prepaid, to the parties at the addresses as set forth at the first of this
Note (subject to the right of a party to designate a different address for itself by notice similarly given). Whenever the giving
of notice is required, the giving of such notice may be waived in writing by the party entitled to receive such notice.

 

		(e)	                         Entire Agreement. This Note (together with the Transaction Documents) contains the entire
agreement between the parties with respect to the subject matter hereof and thereof.

 

		(f)	                         Modification of Agreement. This Note may not be modified, altered or amended, except by
an agreement in writing signed by both Borrower and Lender.

 

		(g)	                         Releases by Borrower. Borrower hereby releases Lender from all technical and procedural
errors, defects and imperfections whatsoever in enforcing the remedies available to Lender upon a default by Borrower hereunder.

 

		(h)	                         Remedies Not Exclusive. No remedy herein conferred upon or reserved to Lender is intended
to be exclusive of any other remedy or remedies available to Lender under this Unsecured Revolving Credit Note, at law, in equity
or by statute, and each and every such remedy shall be cumulative and in addition to every other remedy given hereunder or now
or hereafter existing at law, in equity or by statute.

 

		(i)	                         Governing Law. This Note shall be governed by and construed under the laws of the State
of California without giving effect to the choice of law provisions thereof.

 

		(j)	                         Consent to Jurisdiction. Borrower hereby consents that any action or proceeding against
it may be commenced and maintained in any Federal or state court sitting in Los Angeles County, California, and that such courts
shall have jurisdiction with respect to the subject matter hereof and the person of Borrower and the collateral securing Borrower's
obligations hereunder.

 

		(k)	                         Time of Essence. Time is of the essence of this Note and all of the obligations hereunder.

 

		(l)	                         Headings. The headings of the sections of this Note are inserted for convenience only and
do not constitute a part of this Unsecured Revolving Credit Note.

 

 

 

    	11

    	 

    

		(m)	                         Waiver of Jury Trial. BORROWER AND LENDER, TO THE FULL EXTENT PERMITTED BY LAW, EACH HEREBY
KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVES, RELINQUISHES AND FOREVER FORGOES HEREBY THE RIGHT TO A TRIAL BY JURY IN ANY ACTION
OR PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION, BROUGHT BY EITHER OF THEM AGAINST THE OTHER BASED UPON, ARISING
OUT OF, OR IN ANY WAY RELATING TO OR IN CONNECTION WITH THIS UNSECURED REVOLVING CREDIT NOTE, OR ANY COURSE OF CONDUCT, ACT, OMISSION,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PERSON (INCLUDING, WITHOUT LIMITATION, SUCH PERSON'S
DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH SUCH PERSON), IN CONNECTION
WITH THIS NOTE, INCLUDING, WITHOUT LIMITATION, IN ANY COUNTERCLAIM WHICH BORROWER MAY BE PERMITTED TO ASSERT HEREUNDER OR WHICH
MAY BE ASSERTED BY LENDER OR ITS AGENTS AGAINST BORROWER, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THIS WAIVER BY BORROWER
OF ITS RIGHT TO A JURY TRIAL IS A MATERIAL INDUCEMENT FOR LENDER UNDER THIS UNSECURED REVOLVING CREDIT NOTE.

 

		(n)	                         Note for Business or Commercial Purpose. BORROWER EXPRESSLY WARRANTS AND REPRESENTS TO LENDER
THAT THIS NOTE IS INTENDED FOR AND WILL BE USED FOR A BUSINESS OR COMMERCIAL PURPOSE AND THAT THIS NOTE IS NOT INTENDED FOR A CONSUMER,
PERSONAL, FAMILY OR HOUSEHOLD PURPOSE.

 

		(o)	                         Authority. Borrower (and the undersigned representative of Borrower, if any) represents
and warrants that it has full power and authority to execute and deliver this Note , and the execution and delivery of this Note
has been duly authorized and does not conflict with or constitute a default under any law, judicial order or other agreement affecting
Borrower.

 

		(p)	                         Assignment. Lender may assign, transfer, pledge or hypothecate any or all of this Note or the Shares acquirable upon
exchange without Borrower's consent.

 

IN WITNESS WHEREOF, Borrower
has executed and delivered this Note effective as of the date first above written.

 

	 	BORROWER:
	 	 

                    VG ENERGY,
                    INC. 

                     

	 	By: 	/s/ Haig Keledjian
	 	 	Haig Keledjian, President and CEO

 

    	12

    	 

    

ANNEX A

 

NOTICE OF CONVERSION

 

 

The undersigned hereby
elects to convert principal of the Note pursuant to Section 1(b) therein into shares of common stock, par value $0.0001 per share,
of VG Energy, Inc., a Delaware corporation ("Shares"), according to the conditions hereof, as of the date written below.
If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance
therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

 

Conversion calculations:

 

Date to Effect Conversion:

 

Principal Amount of Note to be Converted:

 

Number of shares of Common Stock to be issued:

 

 

 

Signature:

 

Name:

 

Address:

 

    	13

    	 

    

EXHIBIT B

VG ENERGY, INC.

 

Option for the Purchase of 

Shares of Common Stock 

Par Value $0.0001 

 

STOCK OPTION AGREEMENT

 

THE HOLDER OF THIS OPTION, BY ACCEPTANCE
HEREOF, BOTH WITH RESPECT TO THE OPTION AND COMMON STOCK ISSUABLE UPON EXERCISE OF THE OPTION, AGREES AND ACKNOWLEDGES THAT THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE TRANSFERRED
OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR OTHER COMPLIANCE UNDER THE SECURITIES ACT OR THE LAWS OF THE APPLICABLE
STATE OR A "NO ACTION" OR INTERPRETIVE LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE ISSUER, AND ITS COUNSEL, TO THE EFFECT THAT THE SALE OR TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES
ACT AND SUCH STATE STATUTES.

 

This is to certify
that, for value received, Haig Keledjian (the "Optionee") is entitled to purchase from VG ENERGY, INC. (the "Company"
or "Corporation"), on the terms and conditions hereinafter set forth, all or any part of 1,200,000 shares ("Option
Shares") of the Company's common stock, par value $0.0001 (the "Common Stock"), at an exercise price of $0.083 per
share ("Option Price"). Upon exercise of this option in whole or in part, a certificate for the Option Shares so purchased
shall be issued and delivered to the Optionee. If less than the total option is exercised, a new option of similar tenor shall
be issued for the unexercised portion of the options represented by this Agreement.

 

This option is granted subject to the following further
terms and conditions:

 

1. This option shall
vest immediately. The right to exercise this option with respect to any of the Option Shares shall terminate on December 31, 2018.
In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable,
Optionee (or in the case of exercise after Optionee's death, Optionee's executor, administrator, heir or legatee, as the case may
be) must take the following actions:

 

(a)               
Deliver to the Corporate Secretary of the Corporation an executed notice of exercise in substantially the form of that attached
to this Agreement (the "Exercise Notice") in which there is specified the number of Option Shares which are to be purchased
under the exercised option.

 

(b)              
Pay the aggregate Option Price for the purchased shares through one or more of the following alternatives:

 

(i)               full payment in cash or by check made payable
to the Corporation's order;

 

 

    	14

    	 

    

(ii)              full payment in shares of Common Stock valued at Fair Market Value on the Exercise Date (as such term is defined below);

 

(iii)             full payment through a combination of shares of Common Stock valued at Fair Market Value on the Exercise Date and cash or
check payable to the Company's order;

 

(xiv)           full payment effected
through a broker-dealer sale and remittance procedure pursuant to which Holder shall provide concurrent irrevocable written instructions
(i) to a brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate Option Price payable for the purchased shares and (ii)
to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale
transaction; or

 

(v)              full payment through conversion
of this warrant to purchase Option

 

Shares into the number of fully
paid and nonassessable Option Shares calculated pursuant to the following formula:

 

X = Y (A-B)

A

 

where:

 

	 	X	=	the number of Option Shares to be issued to the Holder;
	 	 	 	 
	 	Y	=	the number of Option Shares for which the conversion right is being exercised;
	 	 	 	 
	 	A	=	the Fair Market Value per share as of the last business day immediately preceding the date of exercise of such conversion right; and
	 	 	 	 
	 	B	=	the Option Price with respect to such Option Shares.

 

(c)               
Furnish to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee)
have the right to exercise this option.

 

(d)              
For purposes of this Agreement, the Exercise Date shall be the date on which the executed Exercise Notice shall have been
delivered to the Company. Except to the extent the sale and remittance procedure specified above is utilized in connection with
the option exercise, payment of the Option Price for the purchased shares must accompany such Exercise Notice.

 

(e)               
Upon such exercise, the Company shall issue and cause to be delivered with all reasonable dispatch (and in any event within
three business days of such exercise) to or upon the written order of the Optionee at its address, and in the name of the Optionee,
a certificate or certificates for the number of full Option Shares issuable upon the exercise together with such other property
(including cash) and securities as may then be deliverable upon such exercise. Such certificate or certificates shall be deemed
to have been issued and the Optionee shall be deemed to have become a holder of record of such Option Shares as of the Exercise
Date.

 

 

    	15

    	 

    

(f)                 For
all valuation purposes under this Agreement, the Fair Market Value per share of Common Stock on any relevant date shall be the
closing selling price per share on the date in question on the securities exchange or market in which the shares are listing for
trading, as such price is officially quoted by such exchange. If there is no reported sale of Common Stock on such exchange on
the date in question, then the Fair Market Value shall be the closing selling price on the exchange or market on the last preceding
date for which such quotation exists.

 

2.                 
The Optionee acknowledges that the shares subject to this option have not and will not be registered as of the date of exercise
of this option under the Securities Act or the securities laws of any state. The Optionee acknowledges that this option and the
shares issuable on exercise of the option, when and if issued, are and will be "restricted securities" as defined in
Rule 144 promulgated by the Securities and Exchange Commission and must be held indefinitely unless subsequently registered under
the Securities Act and any other applicable state registration requirements. The Company is under no obligation to register the
securities under the Securities Act or under applicable state statutes. In the absence of such a registration or an available exemption
from registration, sale of the Option Shares may be practicably impossible. The Optionee shall confirm to the Company the representations
set forth above in connection with the exercise of all or any portion of this option. Optionee shall have piggyback registration
rights with management and Affiliates of the Company.

 

3.                 
The Company, during the term of this Agreement, will obtain from the appropriate regulatory agencies any requisite authorization
in order to issue and sell such number of shares of its Common Stock as shall be sufficient to satisfy the requirements of the
Agreement.

 

4.                 
The number of Option Shares purchasable upon the exercise of this option and the Option Price per share shall be subject
to adjustment from time to time subject to the following terms. If the outstanding shares of Common Stock of the Company are increased,
decreased, changed into or exchanged for a different number or kind of shares of the Company through reorganization, recapitalization,
reclassification, stock dividend, stock split or reverse stock split, the Company or its successors and assigns shall make an appropriate
and proportionate adjustment in the number or kind of shares, and the per-share Option Price thereof, which may be issued to the
Optionee under this Agreement upon exercise of the options granted under this Agreement. The purchase rights represented by this
option shall not be exercisable with respect to a fraction of a share of Common Stock. Any fractional shares of Common Stock arising
from the dilution or other adjustment in the number of shares subject to this option shall rounded-up to the nearest whole share.

 

5.                 
The Company covenants and agrees that all Option Shares which may be delivered upon the exercise of this option will, upon
delivery, be free from all taxes, liens, and charges with respect to the purchase thereof; provided, that the Company shall have
no obligation with respect to any income tax liability of the Optionee and the Company may, in its discretion, withhold such amount
or require the Optionee to make such provision of funds or other consideration as the Company deems reasonably necessary to satisfy
any income tax withholding obligation under federal or state law.

 

6.                 
The Company agrees at all times to reserve or hold available a sufficient number of shares of Common Stock to cover the
number of Option Shares issuable upon the exercise of this and all other options of like tenor then outstanding.

 

 

    	16

    	 

    

7.                 
This option shall not entitle the holder hereof to any voting rights or other rights as a

shareholder of the Company, or to any other rights whatsoever, except the rights herein expressed, and no dividends shall be payable
or accrue in respect of this option or the interest represented hereby or the Option Shares purchasable hereunder until or unless,
and except to the extent that, this option shall be exercised.

 

8.                 
The Company may deem and treat the registered owner of this option as the absolute owner

hereof for all purposes and shall not be affected by any notice to the contrary.

 

9.                 
In the event that any provision of this Agreement is found to be invalid or otherwise

unenforceable under any applicable law, such invalidity or unenforceability shall not be construed as rendering any other provisions
contained herein invalid or unenforceable, and all such other provisions shall be given full force and effect to the same extent
as though the invalid or unenforceable provision were not contained herein.

 

10.             
  This Agreement shall be governed by and construed in accordance with the internal laws of

the state of California, without regard to the principles of conflicts of law thereof.

 

11.             
  Except as otherwise provided herein, this Agreement shall be binding on and inure to the

benefit of the Company and the person to whom an option is granted hereunder, and such person's heirs, executors, administrators,
legatees, personal representatives, assignees, and transferees.

 

IN WITNESS
WHEREOF, the Company has caused this option to be executed on the _ day of January 2011 by the signature of its duly authorized
officer.

 

 

	 	VG ENERGY, INC.	 
	 	 	 
	 	By: 	     /s/ 	 
	 	 	Duly Authorized Officer	 

 

The undersigned Optionee
hereby acknowledges receipt of a copy of the foregoing option and acknowledges and agrees to the terms and conditions set forth
in the option.

 

	 	 	     /s/ Haig Keledjian	 
	 	 	Haig Keledjian	 

 

    	17

    	 

    

Exercise Notice

(to be signed only upon exercise of Option)

 

TO:         VG Energy, Inc.

 

The Optionee, holder
of the attached option, hereby irrevocable elects to exercise the purchase rights represented by the option for, and to purchase
thereunder, _________________ shares of common stock of VG Energy, Inc., and herewith makes payment therefor, and requests that
the certificate(s) for such shares be delivered to the Optionee at:

 

 

 

 

 

 

 

If acquired without
registration under the Securities Act of 1933, as amended ("Securities Act"), the Optionee represents that the Common
Stock is being acquired without a view to, or for, resale in connection with any distribution thereof without registration or other
compliance under the Securities Act and applicable state statutes, and that the Optionee has no direct or indirect participation
in any such undertaking or in the underwriting of such an undertaking. The Optionee understands that the Common Stock has not been
registered, but is being acquired by reason of a specific exemption under the Securities Act as well as under certain state statutes
for transactions by an issuer not involving any public offering and that any disposition of the Common Stock may, under certain
circumstances, be inconsistent with these exemptions. The Optionee acknowledges that the Common Stock must be held and may not
be sold, transferred, or otherwise disposed of for value unless subsequently registered under the Securities Act or an exemption
from such registration is available. The Company is under no obligation to register the Common Stock under the Securities Act,
except as provided in the Agreement for the option. The certificates representing the Common Stock will bear a legend restricting
transfer, except in compliance with applicable federal and state securities statutes.

 

The Optionee agrees
and acknowledges that this purported exercise of the option is conditioned on, and subject to, any compliance with requirements
of applicable federal and state securities laws deemed necessary by the Company.

 

DATED this ______day of _______________________,______.

 

 

 

___________________________________

Signature

 

    	18

    	 

    

EXHIBIT C

 

ACCREDITED INVESTOR QUESTIONNAIRE

 

PERSONAL FINANCIAL INFORMATION. The following information
pertaining to the undersigned as a natural person and U.S. Persons within the meaning of Regulation S is being provided
here in lieu of furnishing a personal financial statement. If correct, please acknowledge category (d) and at least one of categories
(a), (b) and (c).

 

(a)               
My individual net worth, or joint net worth with my spouse excluding my primary residence, exceeds $1,000,000.

 

	 	 	Yes o	No o
	INITIAL	 	 	 

 

(b)              
My individual income in 2009 and 2010 exceeded $200,000 in each such year, and I reasonably expect my individual income
will be in excess of $200,000 in 2011.

 

	 	 	Yes o	No o
	INITIAL	 	 	 

 

(c)               
The joint income of my spouse and I in 2009 and 2010 exceeded $300,000 in each such year, and I reasonably expect our joint
income will be in excess of $300,000 in 2011.

 

	 	 	Yes o	No o
	INITIAL	 	 	 

 

(d)              
Considering the foregoing and all other relevant factors in my financial and personal circumstances, I am able to bear the
economic risk of an investment in the Employer.

 

	 	 	Yes o	No o
	INITIAL	 	 	 

 

The foregoing is a true representation of my financial
status:

 

   /s/ HAIG KELEDJIAN       

HAIG KELEDJIAN

 

 

    	19

    	 

    

EXHIBIT D

 

VG Energy, Inc. Intellectual Property
Agreement

 

(the "VG Energy, Inc. IP Agreement")

 

In consideration of Employee entering into
that certain Employment Agreement dated as of the date hereof (the "Employment Agreement") with VG Energy, Inc. ("VGE"),
Employee agrees as follows. Capitalized terms used herein that are not defined in this VG Energy, Inc. IP Agreement shall be defined
as in the Employment Agreement.

 

1. Non-Solicitation. Employee acknowledges
that, in the course of performing Services (as used throughout this VG Energy, Inc. IP Agreement as defined in the Employment Agreement)
for or on behalf of VGE, having access to VGE's technology, reports, processes, materials, knowledge and know-how, data, facilities,
books and records, Employee may from time to time receive Confidential Information (as defined in Paragraph 2, below) of or with
respect to VGE and hereby stipulates and agrees that such Confidential Information is a part of and essential to the operations
and goodwill of VGE. In connection and in furtherance of the foregoing, Employee may not (whether directly or indirectly; as the
principal or on such person's own account; or solely or jointly with others as an Employee, agent, independent contractor, Employee,
general or limited partner, member, stockholder or holder of equity securities of any other person, other than through ownership
of less than one percent of a class of publicly-traded securities of a company) engage in any of the conduct or activity described
below in this Paragraph 1.

 

(a)                 
Employee may not, so long as Employee is a Employee of VGE pursuant to the Employment Agreement and until the third
anniversary of the effective date of termination of the Employment Agreement for any reason, solicit, induce or influence any person
that at such time is (or, during the six (6) month period ending on the effective date of termination of the Employment Agreement,
was) a vendor, licensor, licensee, distributor, customer, company, Employee, or independent contractor of VGE, excluding the University,
to terminate any contract or agreement with VGE or leave the service of VGE. Employee acknowledges that the restrictions in this
subparagraph (a) of this Paragraph 1 will not impair Employee's ability to carry on Employee's profession or earn a living.

 

(b)                 
Employee may not, so long as Employee is a Employee of VGE and until the third anniversary of the effective date of termination
of the Employment Agreement for any reason, without the express prior written consent of VGE, participate either directly or indirectly
in any discussion or negotiation with any person that at such time is (or, during the six month period ending on the effective
date of termination of the Employment Agreement, was) a vendor, licensor, licensee, distributor, customer, company, Employee, or
independent contractor of VGE the purpose of which discussion or negotiation would be materially adverse to the interests of VGE
and the relationship existing between VGE and such person. Employee acknowledges that the restrictions in this subparagraph (b)
of Paragraph 1 will not impair Employee's ability to carry on Employee's profession or earn a living.

 

 

    	20

    	 

    

2. Non-Disclosure of Information. Employee understands
that the covenants and agreements in this Paragraph 2 may limit Employee's ability to earn a livelihood in a business similar to
the business of VGE of researching, developing and distributing biomedical products and technology, but nevertheless believes that
Employee has received and will receive sufficient consideration and other benefits from VGE so as to clearly justify such restrictions
which, in any event (given Employee's education, skills and ability), Employee does not believe would prevent Employee from earning
a living:

 

(a)                  Employee
acknowledges that, in the course of performing Services for or on behalf of VGE, having access to VGE's technology, reports, processes,
knowledge and know-how, data, facilities, books and records, or otherwise being associated with VGE, Employee will have access
to, and become acquainted with, Confidential Information of or with respect to VGE and hereby stipulates and agrees that such
Confidential Information is a part of and essential to the operations and goodwill of VGE. Employee (i) hereby stipulates and
acknowledges that the Confidential Information constitutes important, material, proprietary and confidential trade secrets of
VGE that affect the successful conduct of the business and goodwill of, VGE; (ii) stipulates and acknowledges that any and all
of the Confidential Information is the sole and exclusive property of VGE, regardless of whether Employee was employed in the
development of any of such Confidential Information while performing Services for or on behalf of VGE; (iii) agrees to keep all
such Confidential Information in strictest confidence, and not to, directly or indirectly, use or divulge, disclose or communicate
to any person (other than a duly-authorized representative of VGE) any such Confidential Information other than in the ordinary
course of business of VGE for the benefit of VGE; and (iv) agrees not to copy or otherwise duplicate any such Confidential Information
or knowingly allow anyone else to copy or otherwise duplicate such Confidential Information, other than in the ordinary course
of business of VGE for the benefit of VGE. Upon the termination of the Employment Agreement, and at any time at the request of
VGE, shall promptly return to VGE all copies of such Confidential Information delivered to or obtained by Employee or, at the
election of VGE, certify that all copies of such Confidential Information in the possession of Employee or any person who received
such Confidential Information from Employee have been destroyed or erased, except that Employee may keep one (1) copy thereof
for the purpose of complying with the terms of this Agreement.

 

(b)                 "Confidential Information" means, with respect to VGE, any technical, financial, or business information (including,
without limitation, manuals, forms, memoranda, reports, journals, data, test results, correspondence, business plans, customer
lists, pricing lists, contracts, plans or specifications, or the like) that may disclose (or may reasonably be expected to disclose)
the customs and practices, marketing methods and data, services and products, methods of doing business, manner of operation, know-how,
formulas, technical data or information, clinical study protocols, patient or biologic information, manufacturing information or
know-how, methods, processes, compounds, and other confidential information, regardless of whether in written, oral, graphic, encoded,
encrypted, tangible, or intangible forms, all of which the Employee hereby acknowledges constitute "trade secrets" within
the meaning of the Uniform Trade Secrets Act, codified at Sections 3426 et seq. of the California Civil Code.

 

 

    	21

    	 

    

(c)                  Employee
shall have no obligation to preserve the confidential or proprietary nature of any information that (i) was already known to Employee
free of any obligation to keep such information confidential at the time of disclosure of such information; (ii) is or becomes
publicly known through no wrongful act of Employee; (iii) is rightfully received from a third person having no direct or indirect
secrecy or confidentiality obligation to VGE; (iv) is disclosed to a third person by VGE without restrictions on confidentiality
similar to those contained in this Paragraph 2; (v) is approved for disclosure by written authorization of VGE; (vi) is developed
by Employee or on Employee's behalf independently of the information disclosed to Employee by VGE as shown by written record;
or (vii) Employee is obligated to produce pursuant to an order of a court of competent jurisdiction or a valid administrative
or Congressional subpoena, provided that Employee promptly notifies VGE and cooperates reasonably with VGE's efforts to contest
or limit the scope of such order.

 

(d)                  Except
for the assignment provisions as provided in Section 3 of this VG Energy, Inc. IP Agreement, the provisions of this Paragraph
2 shall apply to Employee throughout the term of the Employment Agreement and continue in perpetuity.

 

3. Assignment of Inventions. Employee
shall promptly disclose any Employee Creations (as defined below) to VGE and any such Employee Creations shall be VGE's sole property.
All original works of authorship that are made by Employee (in whole or in part, either alone or jointly with others) during and
in the performance of the Services and that are protectable by copyright are "works made for hire" as defined in the
United States Copyright Act (17 U.S.C.A. Section 101). "Employee Creation(s)" means any idea, concept, discovery, development,
device, design, apparatus, use, machine, practice, process, method, product, composition of matter, improvement, formula, algorithm,
literary or graphical or audiovisual work or sound recording, mask work, or computer program of any kind (whether or not subject
to patent, copyright, trademark, trade secret, mask work right, or similar protection) that relate(s) in any way to any of VGE's
biological or pharmaceutical products under investigation or development from time to time, or any manufacturing or production
know-how, scientific know-how, processes, or procedures pertaining thereto that are made by Employee, in whole or in part, either
solely or jointly with others, during and in the performance of the Services, provided, however, that Employee does not have a
pre-existing obligation to assign any such Employee Creation to the University. Employee shall promptly notify VGE in advance or
at the earliest reasonable time if any work being performed or proposed by VGE to be performed by Employee under this Agreement
may give rise to Employee Creations that may be assignable to University under any agreements.

 

(a)                  Employee hereby
assigns to VGE, and agrees to assign to VGE in the future where appropriate, any and all such Employee Creations, and agrees to
cooperate with VGE in the execution of appropriate instruments assigning and evidencing such assignment and ownership rights of
VGE, to the maximum extent permitted by Section 2870 of the California Labor Code. In order that VGE may perfect and protect its
rights to Employee Creations as provided hereunder, Employee agrees that Employee's obligations regarding assignment of such Employee
Creations to VGE shall survive termination of Employee's employment with VGE for a term of three years following the date of termination
of the Employment Agreement for any reason.

 

 

    	22

    	 

    

 

4. Enforcement.
Employee acknowledges that the covenants and the restrictions contained in this Agreement are necessary and required for the
adequate protection of VGE and are necessary to preserve the goodwill of VGE and the value of its existing Confidential
Information, inventions, contracts and relationships; such covenants relate to matters that are of a special, unique and
extraordinary character that give each of such covenants or restrictions a special, unique and extraordinary value; and, a
breach of any such covenant or restriction will result in loss of goodwill, invasion of property rights of VGE, unfair
competition by the breaching party, and other irreparable harm and damages to VGE, which
cannot be adequately compensated by a monetary award. It is
accordingly agreed that VGE or any of its subsidiaries shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement.
Nothing in this Agreement shall be construed as prohibiting VGE from pursuing any other legal or equitable remedies
available to VGE for such breach or threatened breach of any of the provisions of this Agreement
(including, without limitation, recovery of all damages from Employee and an equitable accounting of all earnings, profits
and other benefits arising from such violation).

 

5. Conflict. In the event of any conflict between any provision in this Agreement and any provision in the Employment Agreement,
the provision(s) in the Employment Agreement shall govern.

 

AGREED:

 

	 	
        EMPLOYEE

         
	 	 	 
	 	   /s/
    Haig Keledjian	DATED: 	 	 
	 	Haig Keledjian	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	VG ENERGY, INC.	 	 	 
	 	 	 	 	 
	 	   /s/ Haig
Keledjian	DATED:	 	 
	 	Haig Keledjian,
President	 	 	 

  

 

 

    	23Unassociated Document

Exhibit 10.47

CANCELLATION AGREEMENT

 

CANCELLATION AGREEMENT dated as of January 1, 2011, by and between VIRAL GENETICS, INC. (the "Company"), and IMPERIAL CONSULTING NETWORK, INC. ("ICN"). Each of the Company and ICN is also sometimes herein referred to as a "Party" and collectively as the "Parties".

 

WHEREAS,
the Company and ICN are parties to a Marketing Advertising and Financial Agreement dated as of December 1, 2010 (the "Agreement");
and

 

WHEREAS, the Company and ICN desire to terminate the Agreement as provided for herein.

 

NOW, THEREFORE, in consideration of these premises, and for good and valuable consideration, the receipt and legal adequacy of which is hereby acknowledged, it is agreed as follows:

 

1. Viral has decided that it does not desire to have itself profiled on ICN's television program, "Wide World of Stocks ®" and has informed ICN of that decision. Viral acknowledges and agrees that ICN has performed substantially all of the services relating to the production of the program (including taping the program) and has incurred all of the cost and expenses associated with the production and distribution of the program.

 

2. ICN hereby agrees to the termination of the Agreement and that it will not distribute the program.

 

3. Notwithstanding the termination of the Agreement, at the Company's request, for no compensation or consideration to ICN, ICN has agreed to provide information about the Company to the general public and financial public, including by engaging third parties chosen by ICN when requested by the Company, through the period ending December 31, 2011.

 

4. In consideration of agreeing to the cancellation of the Agreement, the Company agrees to issue to ICN, 4,000,000 shares of the Company's common stock as of the date of this Agreement.

 

5. ICN agrees that except for the payment set forth in Section 4 hereof, and the 4,000,000 shares of the Company's common stock previously issued to ICN pursuant to the Agreement, ICN shall not be entitled to any other compensation under the Agreement, including, without limitation, the Warrants (as such term is defined in the Agreement) provided for in the Agreement.

 

6. Amendment; Waiver. Any amendment, modification or waiver of any term or provision of this Agreement shall only be effective if such amendment, modification or waiver is evidenced by an instrument in writing duly executed by each of the Parties hereto. No waiver by a Party of any term or provision of this Agreement shall be deemed to be a waiver of any preceding or subsequent breach of the same or similar nature or of any other term or provision of this Agreement. Any waiver shall be limited to the specific instance for which it is given. Any course of dealing between the Parties shall not be considered an amendment or modification of this Agreement or a waiver of any term or provision thereof.

 

  

  

  

7.           Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without regard or reference to any of its choice of laws or conflicts of laws principles which would result in the application of the laws of another jurisdiction.

 

8.           Assignment, etc. This Agreement may not be assigned by either Party . Notwithstanding the immediately preceding sentence, either Party may assign this Agreement to any entity that purchases all or substantially all of the assets of such party; provided that written notice of such assignment is given to the other Party within fifteen (15) business days prior to the effectiveness of such assignment, and the assignee assumes in writing all of the obligations of the assigning Party hereunder to the reasonable satisfaction of the non-assigning Party. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties, their respective successors (whether by merger or consolidation, recapitalization or other similar transaction) and their permitted assignees. This Agreement is not intended to create any right in favor of, or benefit for, any third party who is not a signatory hereto.

 

9.           Drafting History. In resolving any dispute or controversy arising out of or relating to this Agreement or in connection with construing any term or provision in this Agreement, there shall be no presumption made or inference drawn because of the inclusion of a provision not contained in a prior draft or the deletion of a provision contained in a prior draft. The Parties acknowledge and agree that this Agreement was negotiated and drafted with each Party being represented by competent legal counsel of its choice and with each Party having an opportunity to participate in the drafting of the provisions hereof and shall therefore this Agreement shall be construed and interpreted as if drafted jointly by the Parties and not with any presumption against either of the Parties.

 

10.           Complete Agreement. This Agreement constitutes the entire understanding and agreement of the Parties with respect to the subject matter hereof, and it supersedes all prior and/or contemporaneous understandings and agreements between USRN, on the one hand, and the Producer, on the other hand, whether oral or written, with respect to such subject matter, all of which are merged herein. There are no representations, warranties, agreements or promises between the Parties with respect to such subject matter, except those which are expressly set forth herein.

 

11.           Headings, Counterparts. The section headings contained in this Agreement are inserted herein for the purpose of convenience and reference only and they are not to be given any substantive effect, nor shall they be used or have any effect upon the construction or interpretation of any term or provision hereof. Any reference to the masculine, feminine or neuter gender shall be a reference to such other gender as if appropriate. References to the singular shall include the plural and vice versa. This Agreement shall be effective when duly executed counterparts are executed and delivered by each of the Parties. This Agreement may be executed in multiple counterparts (and may be executed by facsimile, PDF or electronic signature, which shall constitute a legal and valid signature for purposes hereof), each of which shall constitute an original, and all of which, when take together, shall constitute one and the same document. The Parties acknowledge and agree that this Agreement is effective as of its specified date regardless of the fact that it is being executed by either of the Parties on another date (including a later date). Facsimile or PDF counterparts of this Agreement shall be deemed to be considered original and valid counterparts hereof.

 

 

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IN WITNESS WHEREOF, each of the Company and ICN has caused this Agreement to be executed by one of its duly authorized officers as of the date first written above.

 

	 	

VIRAL GENETICS, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ illegible	 
	 	 	Name: illegible 	 
	 	 	Title: President 	 
	 	 	 	 

 

 

	 	

IMPERIAL CONSULTING NETWORKING, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ illegible   	 
	 	 	Name: illegible	 
	 	 	Title: President

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