Document:

ENGAGEMENT AGREEMENT

 Exhibit 10.17 
 MIDSOUTH CAPITAL INC. 
 1050
Crown Point Parkway, Suite 200, 
 Atlanta CA 30338 
 Phone; (770) 804-3110 Fax: (770) 804-3119 
 Member NASD SIPC 

September 28, 2011 
 Marshall Diamond
Goldberg 
 Legend Oil and Gas Ltd 

1420 5th Avenue 
 Suite 2200 

Seattle, WA 98101 
 Subject: Private
Placement Offering for Legend Oil and Gas Ltd (LOGL.OB) 
 It is our understanding that Legend Oil and Gas Ltd, the
“Company”, desires to raise capital, as well as to fund the Company’s continuing general operations. Based on our discussions, our preliminary review of the financial information submitted to MidSouth Capital Inc., referred heretofore
as the (“AGENT”) and representations you and your associates have made to us with regard to the present and proposed business activities of the Company, its operations and financial condition, we would like to confirm our interest in
acting as the Company’s exclusive Financial Advisor Investment Bank and Placement Agent, on a “best efforts” basis for a period of 30 days following the execution of this agreement, at the conclusion of the 30 days MidSouth will serve
as the non-exclusive agent. In such role we would assist the Company in one or more capital raises which might result in a private placement, merger, acquisition, sale of assets, sale of common stock, sale of ownership interest or any other
financial transaction hereinafter referred to as a “Transaction” upon the basic terms and conditions set forth herein (the “Agreement”), as well as a full array of additional investment banking services. 

Section I: Services to be rendered 

“AGENT” services will include (but not be limited to) the following: 

 

	 	(i)	Arranging for one or more institutional investments of capital, as defined in iii, (an “Investment,” which could include any variation thereof, including
common stock, preferred stock, mezzanine debt, senior secured debt, any other financial instrument or a combination of several financial instruments), on a best efforts basis (in a form and on terms satisfactory, in its sole judgment, to the
Company) to raise capital for use by the Company; 

  

	 	(ii)	Any Investment will be placed in compliance with valid exemptions from registration or qualification under federal securities laws, state securities (“blue
sky”) laws or foreign securities laws of each jurisdiction in which any offers of an Investment may be made; 

  

	 	(iii)	 Utilizing appropriate investment information materials or modifying existing Company business plans and documents (collectively, the “Information
Memorandum”) to be provided to potential sources of financing. “AGENT” will provide advice with respect to negotiating with all potential financing, merger or acquisition candidates introduced (as defined in Section II below) to the
Company by “AGENT” (as defined below; any such identified and introduced candidates, along with their affiliates, associates, subsidiaries, divisions and related entities being hereinafter referred to as “Investor Candidates”)
who might be interested or involved in making an Investment in the Company, including 

  
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reviewing the preliminary and final documentation relating to any such financing. As used herein, “Investor Candidates” shall mean and include individual, strategic and institutional
investors of all types, introduced (as defined in Section II below) to the Company by “AGENT” including individuals, trusts, estates, partnerships and associations, banks, thrifts, insurance companies and other financial institutions,
investment companies and other pooled investment vehicles, all tax-exempt organizations such as those subject to ERISA and other public and private pension funds, endowments and foundations as well as corporations in similar lines of business to the
Company’s, which might be candidates for acquisition by or merger with , together with their affiliates, divisions, subsidiaries and investment management consultants. All Investor Candidates, if not merger or acquisition candidates, shall be
“accredited investors,” as that term is generally understood in the private equity business; 

 In
performing services hereunder, “AGENT” shall be regarded as an independent contractor and marketing representative. “AGENT” shall not have any right or authority to create any obligations of any kind on behalf of the Company,
shall make no representation to any third party to the contrary, and shall not make any representations about the Company, its operations or finances other than what the Company provides for inclusion in the Information Memorandum. Nothing contained
in this Agreement shall be deemed or construed to create a partnership or joint venture between Company and “AGENT” or between Company and any Investor Candidate. 
 Section II: Fees, Expenses and Term 
 “AGENT” will be the
exclusive financial advisor to and representative of the Company for an initial period of 30 days, and then reverting to a non-exclusive financial advisor for the next twelve consecutive (12) months commencing on the date of this Agreement,
with an option to extend this Agreement an additional 6 months, provided however, that either party may withdraw from this Agreement at any time upon written notice to the other party. Otherwise, this engagement and the terms hereunder will
continue, subject to the same right of either party to terminate on written notice to the other party, until a Transaction is successfully completed or until the Agreement is terminated. Within three business days after the effective date of any
termination by the Company (the “Termination Date”), “AGENT” shall deliver to Company a list of all introduced Investor Candidates, merger or acquisition candidates and Strategic Investors (the “Covered Parties”) with
which “AGENT” can confirm that (a) the Company, at “AGENT’s” instigation or by “AGENTs” introduction, has had discussions concerning a Transaction during the term of this Agreement and prior to receipt of the
notice of termination or (b) such Covered Parties have, prior to such notice of termination, expressed an interest in considering or pursuing a Transaction with Company. 
 On and after the Termination Date, “AGENT” shall also either destroy or return to Company any and all Information, Information Memoranda and any other confidential information of the Company
(including extracts thereof), which are in “AGENT’s” possession or control. The provisions concerning confidentiality, indemnification, compensation and the Company’s obligations to pay fees and reimburse expenses contained
herein and the Company’s obligations contained in the Indemnification Provisions (as hereinafter defined) will survive any such termination. “AGENT” agrees not to use any confidential information about the Company for any purposes
other than in connection with a Transaction and directly related matters. 
 “AGENT” agrees to introduce the Company
to certain potential Investor Candidates. Upon written request from the Company, “AGENT” may designate independent counsel to prepare the appropriate documents (including subscription and escrow agreement) with regard to the terms of any
financial transactions and the closing thereof. The Company is responsible for any and all reasonable expenses 

  
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associated with the Offering and the closing documents, escrow and escrow agent. However incurrence of any such expenses over $2,500.00 shall require the prior written consent for those expenses
from the Company. 
 If, within the two year period commencing on the date hereof, the Investor Candidate , singly or with
others, purchases debt or equity securities of, or loans money to the Company, the Company will pay “AGENT” within three business days upon after any such transaction under the following terms below: 

 

	 	(i)	Stock Compensation Fees: 

 Within 5 business days upon the execution of this engagement, the Company will deliver 10,000 restricted shares of Legend Oil and Gas Ltd common stock to MidSouth Capital Inc. It will be MidSouth
Capital’s right to designate the distribution of these shares to individuals within the firm at their discretion 
  

	 	(ii)	Cash Compensation Fees: 

 A success fee for debt and/or equity capital raised by “AGENT” on behalf of Company shall be subject to the following fee structure: 

a. 8% of the amount for any capital raised 
  

	 	(iii)	A success fee which shall be the identical terms as in Section II (i) above of the Aggregate Consideration (except as further defined in (iii) and
(iv) below) received by Company from any Transaction closed, including multiple successive Transactions, with an Investor Candidate or a Strategic Candidate (or upon closing a Transaction with a Covered Party, including multiple successive
Transactions, within twelve months after the Termination Date), which amount will be paid when the Company receives the proceeds from the Transaction. 

  

	 	(iv)	Warrants: 

 In
connection with the compensation set forth above, the Company agrees to grant “AGENT” warrants to purchase that number of shares of the Company’s common stock equal to five (5%) percent of the value of such transactions for
successful common stock equity raised at 100% of the price at the closing of such transaction for a period of two (2) years, and/or to grant “AGENT” warrants to purchase that number of shares of the Company’s common stock equal
to five (5%) percent of the value of such transactions for successful preferred stock, debt, hybrid debt of any kind (convertibles, warrants, etc.) or debt and equity combination raised at 100% of the price at the closing of such transaction
for a period of two (2) years. These stocks shall be delivered in cashless exercise and issuable from the investment closing date up to no more than two (2) years from the date and upon exercise thereof shall be fully paid and
non-assessable. The stock obtainable upon exercise of such warrants shall cariy unlimited “piggyback” registration rights of the Company. 
  

	 	(v)	. 

 For purposes of this
Agreement, “introduced” means that “AGENT” shall have brought the prospective Investor Candidate, Strategic Investor or Transaction (“Investor Candidate”) to the attention of the Company and “AGENT” shall have
been a procuring cause in its consummation of the matter. “Procuring cause” shall mean that “AGENT” shall have identified the Investor Candidate, the merger or acquisition candidate or the Strategic Investor to Company and
conducted initial qualifying discussions regarding an Investment in or other Transaction with Company, or caused the parties to have attended meetings for the purpose of considering a Transaction. 

  
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 For purposes of this Agreement, “Aggregate Consideration” shall mean the total
value of all cash, securities, other property and any other consideration, including, without limitation (as, if and when received), any contingent, earned or other assets or consideration, paid or payable, directly or indirectly, in connection with
the Transaction, net of any indebtedness owed upon the same, it being the intention of this provision that the Aggregate Consideration shall mean the net equity value of any cash, tangible assets or measurable intangible assets acquired by, invested
in, loaned to or transferred to the Company. If any non-cash consideration is a class of newly-issued, publicly-traded securities, then the fair market value thereof shall be the average of the closing prices for the twenty trading days subsequent
to the fifth trading day after the consummation of the Transaction. If no public market exists for any securities issued in the Transaction or a class of securities is not intended to be publicly traded or convertible into publicly-traded
securities, then the fair market value thereof shall be determined by the valuation placed upon these securities by the parties to the Transaction. 
 Section III: Indemnification 
 The Company agrees to indemnify and
hold “AGENT”, which terms for the purposes of this Agreement include the partners, controlling persons, officers, employees and agents of “AGENT”, harmless from and against any and all losses, claims, damages, costs, liabilities
or expenses (including reasonable attorney’s fees and expenses), joint or several, to which “AGENT” may become subject in connection with its performance of the services described herein resulting from Company’s material breach
of this Agreement, gross negligence, willful misconduct or misfeasance, provided, however, that Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability, cost or expense is found in a final judgment by
a court of law to have directly resulted from the gross negligence or willful misconduct of “AGENT”. 
 Likewise
“AGENT” agrees to indemnify and hold Company, which terms for the purposes of this paragraph include the subsidiaries, partners, controlling persons, officers, stockholders and employees of Company, harmless from and against any and all
losses, claims, damages, costs, liabilities or expenses (including reasonable attorney’s fees and expenses), joint or several, to which Company may become subject resulting from “AGENT’s” material breach of this Agreement, gross
negligence, willful misconduct or misfeasance, provided however, that “AGENT” shall not be liable in any such case to the extent that any such loss, claim, damage, liability, cost or expense is found in a final judgment by a court of law
to have directly resulted from the gross negligence or willful misconduct of Company. 
 Section IV: Other 

Each party to this Agreement agrees to keep in strict confidence the proprietary and non-public information of the other party during the
term of this Agreement and thereafter, provided however that the foregoing shall not prohibit disclosures (i) pursuant to the exercise of the parties’ responsibilities under this Agreement; (ii) required by law or legal process
(provided notice is given prior to such disclosure); or (iii) of matters which become public other than by the actions of the disclosing party hereunder. 
 If “AGENT” completes the Private Placement or any other Transaction pursuant to the Agreement, “AGENT” may, at its own expense, place an announcement, subject to Company’s prior
consent and approval, in any newspapers and periodicals it may select stating that “AGENT” has acted as financial advisor, investment banker or placement agent for Company in the Transaction. 

MidSouth Capital Inc. is a registered broker dealer, whose address is herein below for to this contemplated transaction. 

  
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 MidSouth Capital Inc. 

1050 Crown Pointe Parkway 
 Suite 200 
 Atlanta, GA 30338 

Attention: Mr. Adam Cabibi 
 Telephone: (770) 804-3110 
 This agreement shall be construed in accordance
with the laws of the State of Georgia and the parties agree to submit themselves to the jurisdiction of the courts located in that state, which shall be the sole tribunals in which either party may institute and maintain a legal proceeding against
the other party arising from any dispute hereunder. 
 If any agreement, covenant, warranty or other provision of this Agreement
is invalid, illegal or incapable of being enforced by reason of any rule of law or public policy, all other agreements, covenants, warranties and other provisions of this Agreement shall, nevertheless, remain in full force and effect. No waiver by
either party of a breach or non-performance of any provision or obligation of this Agreement shall be deemed to be a waiver of any preceding or succeeding breach of the same or any other provision of this Agreement. This Agreement is the entire
agreement of the parties with respect to the subject matter hereof, supersedes all prior agreements and understandings, oral or written, relating to the subject matter hereof, and may not be amended, supplemented, or modified except by written
instrument executed by all parties hereto. Neither party may assign any of its rights or obligations under this Agreement without the prior written consent of the other party. 
 All notices or other communications under this Agreement must be in writing and sent by prepaid, first class airmail, delivered by hand or transmitted by facsimile or email to the email address or
facsimile number of the recipient set out below or such other address, email address or facsimile number as may be furnished in writing by the recipient to the other party. The addresses, email addresses and facsimile numbers of the parties for
purposes of this Agreement are: 
  

					
	Legend Oil and Gas Ltd	  	MidSouth Capital Inc	  	
	1420 5th Avenue	  	1050 Crown Pointe Pkwy	  	
	Suite 2200	  	Suite 200	  	
	Seattle, Washington 98101	  	Atlanta, GA 30338	  	
			
	Phone 206-274-5165	  	Phone: 770-804-3110	  	

 If the foregoing is acceptable to you, please indicate your approval by signing in the space provided and returning an
executed copy of this Agreement to us. 
 We are very enthusiastic about working with your team toward the successful completion
of this assignment. 
 Understood and agreed, this day 28th day of September, 2011. 
  

							
	Legend Oil and Gas Ltd	 		 	MidSouth Capital Inc.	 	
				
	 /s/ Marshall Diamond Goldberg
	 		 	 /s/ Ron Bateh
	 	
	Marshall Diamond Goldberg - CEO	 		 	Ron Bateh - CEO	 	

  
 5Form of Stock Option Agreement

 Exhibit 10.18 
 LEGEND OIL AND GAS, LTD. 
 – STOCK OPTION AGREEMENT –

 Option No. 2011-             

THIS STOCK OPTION AGREEMENT (“Agreement”) is made and entered into as of the date of grant set forth below
(“Date of Grant”) by and between Legend Oil and Gas, Ltd., a Colorado corporation (“Company”), and the participant named below (“Participant”). Capitalized terms not defined herein shall have the
respective meanings ascribed to them in the Company’s 2011 Stock Incentive Plan (the “Plan”). A copy of the Plan has been provided to Participant. 

 

					
		  	 Participant’s Name:
	  	  

			
		  	 Participant’s Address:
	  	  

			
		  		  	  

			
		  	 Total Number of Option Shares:
	  	______________
			
		  	 Exercise Price per Share:
	  	$2.17 per share
			
		  	 Date of Grant:
	  	November 2, 2011
			
		  	 Vesting Commencement Date:
	  	November 2, 2011
			
		  	 Expiration Date:
	  	November 1, 2021
			
		  	 Type of Option:
	  	[        ] Incentive Stock Option
			
		  		  	[ XX ] Nonqualified Stock Option

 1. Grant of Option. The Company hereby grants to Participant an option
(“Option”) to purchase the total number of shares of Common Stock of the Company set forth above (“Shares”) at the exercise price per share set forth above (“Exercise Price”), subject to all of the
terms and conditions of this Agreement and the Plan. If designated as an Incentive Stock Option above, the Option is intended to qualify as an “incentive stock option” (“ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended; if designated as a Nonqualified Stock Option above, the Option is not intended to qualify as an ISO. 

  
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 2. Vesting of Option. One-third (1/3) of the Shares subject to the Option
shall be immediately vested and exercisable upon the Vesting Commencement Date. Provided Participant continues to provide services to the Company throughout the specified period, the remaining Shares underlying the Option will become exercisable at
the following rate: 
  

	 	•	 	 An additional one-third (1/3) of the Shares subject to the Option shall vest and become exercisable on the one-year anniversary of the Vesting
Commencement Date; and 

  

	 	•	 	 The final one-third (1/3) of the Shares subject to the Option shall vest and become exercisable on the two-year anniversary of the Vesting
Commencement Date. 

 Notwithstanding the foregoing, any portion of an Option that is not vested and exercisable on the date
of a Participant’s Termination of Service, for any reason, shall immediately terminate on such date. 
 3.
Expiration; Termination. 
 (a) Expiration. Unless earlier terminated, the Option shall expire on the
Expiration Date set forth above and must be exercised, if at all, on or before the Expiration Date. 
 (b) Termination of
Service 
 (i) For any Reason except Cause, Retirement or Early Retirement, Disability or Death. Upon
Termination of Service of Participant for any reason other than Cause, Retirement or Early Retirement, Disability or death, the Option, solely to the extent that it would have been exercisable by Participant on such date of termination, may be
exercised by Participant no later than three months after the date of such Termination of Service, but in any event no later than the Expiration Date. 
 (ii) Retirement or Early Retirement, Disability or Death. If Participant’s Termination of Service occurs because of Retirement or Early Retirement, Disability or death of Participant, the
Option, solely to the extent that it is exercisable by Participant on the date of termination, may be exercised by Participant (or Participant’s legal representative) no later than one year after the date of termination, but in any event no
later than the Expiration Date. 
 (iii) Death of Participant. Notwithstanding the foregoing, if a
Participant dies after his or her Termination of Service but while an Option is otherwise exercisable, the portion of the Option that is vested and exercisable on such Termination of Service shall expire upon the earlier to occur of (y) the
Option Expiration Date and (z) the one-year anniversary of the date of death, unless the Plan Administrator determines otherwise. 
 (iv) Termination for Cause. If a Participant’s Termination of Service occurs for Cause, all Options granted to a Participant shall automatically expire upon first notification to the
Participant of such termination, unless the Plan Administrator determines otherwise. If a Participant’s employment or service relationship with the Company is suspended pending an investigation of whether a Participant shall be terminated for
Cause, all a Participant’s rights under any Option shall likewise be suspended during the period of investigation. If any facts that would constitute 

  
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termination for Cause are discovered after a Participant’s Termination of Service, any Option then held by a Participant may be immediately terminated by the Plan Administrator, in its sole
discretion. 
 (c) No Rights to Employment. Nothing in the Plan or this Agreement shall confer on Participant any right
to continue in the employ of, or other service relationship (whether as an officer, director, consultant or otherwise) with, the Company or any Related Company, or limit in any way the right of the Company (or any Related Company) to terminate
Participant’s employment or other service relationship at any time, with or without Cause. 
 4. Manner of
Exercise. 
 (a) Exercise Notice. To exercise this Option, Participant (or in the case of exercise after
Participant’s death, Participant’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise notice in the form attached hereto as Exhibit A, or in such other form as
may be approved by the Company from time to time (“Exercise Notice”), which shall set forth Participant’s election to exercise the Option, the number of Shares being purchased (“Exercised Shares”), any
restrictions imposed on the Shares and any representations, warranties and agreements regarding Participant’s investment intent and access to information as may be required by the Company to comply with applicable securities laws. If someone
other than Participant exercises the Option, then such person must submit documentation reasonably acceptable to the Company that such person has the right to exercise the Option. The Exercise Notice shall be accompanied by payment of the aggregate
Exercise Price as to all Exercised Shares. 
 (b) Limitations on Exercise. No Shares shall be issued pursuant to the
exercise of this Option unless such issuance and exercise complies with all relevant provisions of law and the requirements of any stock exchange upon which the Shares are then listed. Assuming such compliance, for income tax purposes the Exercised
Shares shall be considered transferred to the Participant on the date the Option is exercised with respect to such Exercised Shares. The Option may not be exercised as to fewer than 100 Shares unless it is exercised as to all Shares as to which the
Option is then exercisable. The Option may be exercised only for whole shares. 
 (c) Method of Payment. Payment of the
aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Participant: 
  

	 	(i)	cash; or 

  

	 	(ii)	certified or cashier’s check (or a personal check if acceptable to the Company); or 

 

	 	(iii)	tendering (either actually or, if the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by attestation) shares of Common Stock already
owned by a Participant for at least six months (or any shorter period necessary to avoid a charge to the Company’s earnings for financial reporting purposes) that on the day prior to the exercise date have a Fair Market Value equal to the
aggregate exercise price of the shares being purchased under the Option; 

  
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	 	(iv)	if the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, delivery of a properly executed exercise notice, together with irrevocable
instructions to a brokerage firm designated by the Company to deliver promptly to the Company the aggregate amount of sale or loan proceeds to pay the Option exercise price and any withholding tax obligations that may arise in connection with the
exercise, all in accordance with the regulations of the Federal Reserve Board; 

  

	 	(v)	such other consideration as the Plan Administrator may permit; and 

  

	 	(vi)	any combination of the foregoing. 

 (d) Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option, Participant must pay or provide for any applicable foreign, federal, state or local withholding obligations of
the Company. If the Company allows, Participant may provide for payment of withholding taxes upon exercise of the Option by requesting that the Company retain Shares with a Fair Market Value equal to the minimum amount of taxes required to be
withheld. In such case, the Company shall issue the net number of Shares to the Participant by deducting the Shares retained from the Shares issuable upon exercise. 
 (e) Issuance of Shares. The Option shall be deemed to be exercised upon receipt by the Company of a fully executed Exercise Notice accompanied by the aggregate Exercise Price for the Exercised
Shares and provision for tax withholding. Thereafter, the Company shall issue the Shares registered in the name of Participant, Participant’s authorized assignee, or Participant’s legal representative, and shall deliver certificates
representing the Shares with the appropriate legends affixed thereto. 
 5. Non-Transferability of Option. The
Option may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant. The terms of the Option shall be binding upon the executors,
administrators, successors and assigns of Participant. 
 6. Adjustment in Option. If, between the Date of Grant
and the complete exercise thereof, there shall be a change in the outstanding shares of Common Stock of the Company by reason of one or more stock splits, stock dividends payable in shares of common stock, combinations or exchanges of shares,
recapitalizations or similar change in the Company’s corporate or capital structure, the number, kind and Exercise Price, as the case may be, of the Shares remaining subject to this Option shall be equitably adjusted in accordance with the
terms of the Plan so that the proportionate interest in the Company represented by the Shares then subject to the Option shall be the same as before the occurrence of such event. 

7. Acceleration upon Company Transaction. If in the event of a Company Transaction the Successor Company refuses to assume
or substitute for an Option, then each such outstanding Option shall become fully vested and exercisable with respect to fifty percent 

  
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(50%) of the unvested portion of the Option. In such case, the Plan Administrator shall notify a Participant in writing or electronically that fifty percent (50%) of the unvested portion of
the Option specified above shall be fully vested and exercisable for a specified time period. At the expiration of the time period, the Option shall terminate, provided that the Company Transaction is consummated. All Options shall terminate and
cease to remain outstanding immediately following the Company Transaction, except to the extent assumed by the Successor Company. 
 8. Tax Consequences. 
 (a) Tax Consequences. Participant
acknowledges that there are or may be foreign, federal, state and local income tax consequences to Participant as a result of the exercise of the Option and the subsequent sale or disposition of the Shares. If the Option is granted intending to
qualify as an ISO under federal income tax law, the Company does not represent or guarantee that the Option qualifies as such. PARTICIPANTS ARE URGED TO CONSULT THEIR OWN TAX ADVISERS BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

 (b) Notice of Disqualifying Disposition of ISO Shares. If the Option is intended to qualify as an ISO, and if
Participant sells or otherwise disposes of any of the Shares acquired pursuant to the Option on or before the later of (a) the date two years after the Date of Grant, and (b) the date one year after exercise of the Option,
Participant shall immediately notify the Company in writing of such disposition. Any such early disposition of the Shares may result in adverse tax consequences to Participant. Participant acknowledges that he or she may be subject to income tax
withholding by the Company on the compensation income recognized by Participant from the early disposition by payment in cash or out of the current wages or other compensation payable to Participant. 

9. Privileges of Stock Ownership. Participant shall not have any of the rights of a stockholder in the Company with respect
to any Shares until Participant exercises the Option and pays the Exercise Price. 
 10. Compliance with Securities Laws
and Regulations. The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Participant with all applicable requirements of federal and state securities laws and with all applicable
requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or transfer. Participant understands that certificates evidencing Shares issued upon exercise of this Option may be required to
bear a legend restricting the resale thereof without registration of such shares under the Securities Act of 1933, as amended. Participant understands that the Company is under no obligation to register or qualify the Shares with the Securities and
Exchange Commission, any state securities commission or any stock exchange to effect such compliance. 
 11.
Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by Participant or the Company to the Plan Administrator for review. The resolution of such a dispute by the Plan Administrator shall be final
and binding on the Company and Participant. 

  
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 12. Entire Agreement. The Plan is incorporated herein by reference. This
Agreement and the Plan constitute the entire agreement of the parties and supersede all prior undertakings and agreements with respect to the subject matter hereof. 
 13. Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its
principal corporate offices. Any notice required to be given or delivered to Participant shall be in writing and addressed to Participant at the address indicated above or to such other address as such party may designate in writing from time to
time to the Company. All notices shall be deemed to have been given or delivered upon: personal delivery; three days after deposit in the United States mail by certified or registered mail (return receipt requested); one business day after deposit
with any return receipt express courier (prepaid); or one business day after transmission by facsimile (transmission confirmed). 
 14. Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the
Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns. 

15. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Washington, without regard to its provisions regarding conflicts of laws. 
 16. Limitation on Rights; No Right to Future
Grants; Extraordinary Item of Compensation. By entering into this Agreement and accepting the grant of the Option evidenced hereby, you acknowledge: (a) that the Plan is discretionary in nature and may be suspended or terminated by the
Company at any time; (b) that the grant of the Option is a one-time benefit which does not create any contractual or other right to receive future grants of options, or benefits in lieu of options; (c) that all determinations with respect
to any such future grants, including, but not limited to, the times when options will be granted, the number of shares subject to each option, the option price, and the time or times when each option will be exercisable, will be at the sole
discretion of the Company; (d) that your participation in the Plan is voluntary; (e) that the value of the Option is an extraordinary item of compensation which is outside the scope of your employment contract, if any; (f) that the
Option is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments; (g) that the
vesting of the Option ceases upon termination of employment or service relationship with the Company for any reason except as may otherwise be explicitly provided in the Plan or this Agreement; (h) that the future value of the underlying Shares
is unknown and cannot be predicted with certainty; and (i) that if the underlying Shares do not increase in value, the Option will have no value. 
 [Remainder of Page Intentionally Left Blank; Signature Page Follows] 

  
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 DATED as of the Date of Grant set forth above. 

 

			
	LEGEND OIL AND GAS, LTD.
		
	By:	 	  

	Its:	 	
	Name:	 	

 ACCEPTANCE BY PARTICIPANT: 
 Participant acknowledges receipt of a copy of the Plan. Participant has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing
this Agreement and fully understands all provisions of the Plan and this Agreement. Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a
tax adviser prior to any such exercise or disposition. Participant accepts this Option subject to all of the terms and provisions of the Plan and this Agreement. 
  

			
	 PARTICIPANT:
	 	
		
		 	  

		 	(Signature)
		
		 	  

		 	(Print Name)

 Date signed:
                     
  

  
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 EXHIBIT A 
 NOTICE OF EXERCISE OF STOCK OPTION 
 Legend Oil and Gas, Ltd. 

1420 Fifth Avenue, Suite 2200 
 Seattle, WA 98101

 Attn: James Vandeberg 
 1. Notice of Exercise. The undersigned (“Purchaser”) hereby notifies Legend Oil and Gas, Ltd., a Colorado corporation (the “Company”), of his / her election to exercise his /
her option to purchase             shares of the Company’s common stock, $.001 par value (the “Common Stock”), pursuant to that Stock Option Agreement (the
“Agreement”) between the undersigned and the Company dated             , 20            (Option No.
            ). 
 2. Payment of Exercise Price. Accompanying
this Notice is (a) a certified or a cashier’s check (or other check acceptable to the Company) in the amount of $            payable to the Company, and/or (b) such other
form of payment, together with appropriate documentation, which is acceptable to the Company or as otherwise specified in Section 4 of the Agreement. 
 3. Payment of Withholdings Taxes. Purchaser acknowledges that he / she is responsible for paying or providing for any applicable federal or state tax withholdings as a result of this Option
exercise. 
 (a) Accompanying this Notice is my check in the amount of
$            , in payment of foreign, federal, state or local income withholding and employment taxes applicable to this exercise. The amount of such payment is based on advice received
from appropriate officials of the Company responsible for the administration of its payroll and employment tax obligations. 

(b) Alternatively, or in addition, to avoid earnings charges or other adverse consequences to the Company under applicable accounting or
tax rules or regulations, in full or partial payment of such taxes: (i) I deliver herewith an additional             shares of the Common Stock presently owned by me, having an
aggregate fair market value as of the date hereof of $            [if such delivery is authorized and approved by the Company]; or (ii) I hereby authorize the Company to withhold, from
the shares of Common Stock otherwise issuable to me pursuant to this exercise,             such shares having an aggregate fair market value at the date hereof of
$            . 
 4. Title to Shares. The exact spelling of
the name(s) under which Purchaser desires to take title to the Shares is: ____________ 

__________________________________________________________________________________________.
 

 Purchaser desires to take title to the Shares as follows: 

 

					
		 	[    ]	  	Individual, as separate property
		 	[    ]	  	Husband and wife, as community property
		 	[    ]	  	Joint Tenants
		 	[    ]	  	Alone or with spouse as trustee(s) of the following trust (including date):
		 		  	  

		 		  	  

		 	[    ]	  	Other; please specify: ______________________________________________________________________
		 		  	  

 5. Tax Consequences. PURCHASER UNDERSTANDS THAT THERE MAY BE ADVERSE FOREIGN, FEDERAL OR STATE TAX
CONSEQUENCES AS A RESULT OF PURCHASER’S PURCHASE OR DISPOSITION OF THE SHARES. PURCHASER ACKNOWLEDGES THAT SHE / HE HAS BEEN ADVISED TO CONSULT WITH HER / HIS TAX ADVISER IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT
PURCHASER HAS HAD AN OPPORTUNITY TO DO SO. PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. 
 6. Compliance with
Laws and Regulations. Purchaser acknowledges that the issuance and transfer of the Shares will be subject to and conditioned upon compliance by the Company and Purchaser with all applicable state and federal laws and regulations and with all
applicable requirements of any stock exchange or automated quotation system on which the Company’s Common Stock may be listed or quoted at the time of such issuance or transfer. 

7. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of
Washington, without regard to conflicts of laws. 
 EXECUTED as of the
             day of                     , 20     . 

PARTICIPANT 
  

			
	  
	  	SSN: ___________________________________________
	            (Signature)	  	
		
	  
	  	Address: __________________________________________
	            (Print name)	  	               __________________________________________

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