Document:

SEC Connect

 

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

THIS
AGREEMENT is made and entered into effective as of December 1, 2016
by and between Exactus, Inc., a Nevada corporation, having an
address of 4870 Sadler Rd. Suite 300 Glen Allen VA 23060
("Exactus"), and all of its subsidiaries, affiliates, and related
entities, and their successors and assigns (collectively, the
“Company”), and James R. Erickson (the
“Executive”).

In
consideration of the mutual promises, terms, provisions and
conditions set forth in this Agreement, the parties hereby agree as
follows:

1.
Employment. Subject
to the terms and conditions set forth in this Agreement, the
Company hereby offers and the Executive hereby accepts employment
in the position of Chief Business Officer.

2.
Term. The
Executive’s employment hereunder shall commence effective as
of December 5, 2016 (the “Effective Date”) and shall
continue until terminated on the terms and conditions set forth
herein (the “Term”). 3. Capacity and Performance;
Location.

(a)
During the Term, the Executive shall serve as the Chief Business
Officer of the Company.

(b)
During the Term, the Executive shall be employed by the Company on
a full-time basis, shall have all powers and duties consistent with
his position, subject to the direction and control of the Board and
shall perform such other duties and responsibilities on behalf of
the Company as may reasonably be designated from time to time by
the Board. The Executive shall require the approval of the Board to
pursue or enter into any transaction or group of related
transactions that are not in the ordinary course of
Executive’s employment and would be material to the
Company.

(c)
During the Term, the Executive shall devote sufficient time and his
best efforts, business judgment, skill and knowledge to the
advancement of the business and interests of the Company and to the
discharge of his duties and responsibilities hereunder. The
Executive shall comply with all written policies of the Company in
effect from time to time and shall observe and implement those
resolutions and directives of the Board as made or issued from time
to time. The Executive shall not engage in any other business
activity or serve in any industry, trade, professional,
governmental or academic position during the Term without the prior
approval of the Board of Directors.

d) The
Company’s principal business office is currently located in
Richmond, Virginia. The parties agree that the Executive may
provisionally work , for a period of nine (9) months, from an
office at his current location in Long Beach, California and that
during this initial period, Executive shall travel to the
Company’s Virginia headquarters and other locations as is
reasonably necessary for the management of the Company’s
business. At any time following this provisional period, the Board
may require Executive to move his residence to a location no
greater than thirty (30) miles from its principal business office
provided (a) the Board give no fewer than three (3) months advance
written notice of such requirement and (b) the Company shall
compensate Executive for Executive’s moving or relocation
expenses to the extent the Board, at its sole discretion, deems
reasonable.

(e)
Upon reasonable notice, the Executive shall be available to
participate in all meetings of the Board. The Company will
reimburse the Executive for all reasonable and customary travel and
lodging expenses (e.g., hotel and meals), if any, incurred in
connection with such meetings and the Executive shall provide the
Company with reasonable documentation of such
expenses.

4.
Compensation and
Benefits. As compensation for all services performed by the
Executive hereunder during the Term, Executive shall receive the
following:

(a)
Base Salary. During
the Term, except during the Limited Salary Period, as defined
below, the Company shall pay the Executive a base salary at an
initial rate of Two Hundred Fifty Thousand and No/100 Dollars
($250,000.00) per annum, payable in accordance with the payroll
practices of the Company for its executives,
but in no event less than once per month. Such base salary, as from
time to time increased, is hereafter referred to as the “Base
Salary.”

 

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(i) For
an initial time from the date of this contract, the Executive shall
be paid an annual salary of One Hundred Twenty Five Thousand and
No/100 Dollars ($125,000.00) (the “Limited Salary”).
The Executive shall be paid the Limited Salary beginning on the
Effective Date and continuing until the Company has brought in an
aggregate of $5 million in financing, whether through the sale of
securities or otherwise (the “Limited Salary Period”).
At the conclusion of the Limited Salary Period, the
Executive’s salary rate will change to the Base Salary as
defined in Section 4(a). The Limited Salary will be paid in
accordance with the payroll policies noted in Section
4(a).

 

(b)
Bonus Compensation.
During the Term, the Executive shall have the opportunity to earn
an annual performance bonus equal to up to 55% of the
Executive’s Limited Salary or Base Salary, based upon
performance criteria set by the Board in its sole discretion on an
annual basis. The Board shall conduct a performance review of the
Executive at least once a year on or prior to February 1 of each
year, commencing in 2017. The Company may, from time to time, pay
such other bonus or bonuses to the Executive as the Board or a
compensation committee of the Board, in its sole discretion, deems
appropriate. Any performance or other discretionary bonus for which
the Executive is eligible under this Section shall not be earned by
the Executive unless the Executive is employed in good standing by
the Company on the last date of the period with respect to which
the annual performance bonus has been awarded. Any bonus earned by
the Executive in accordance with the terms of this provision will
be paid to the Executive at such time as bonuses for the applicable
period are regularly paid to senior Executives of the Company;
provided, however, in no event will any annual performance bonus be
paid later than February 28 of the applicable calendar
year.

 

(c)
Stock Option. As
soon as practicable following the Effective Date, the Executive
shall receive stock options to purchase 1,000,000 (one million)
shares of common stock of the Company, as applicable, at an
exercise price per share equal to the fair market value of such
shares on the date of grant (the “Stock Option”). The
Stock Option will vest and become exercisable with respect to half
(50%) of the total number of shares for which options are awarded
on December 31, 2017, or immediately upon the establishment of a
stock option plan in 2017. The other half (50%) of the shares (the
“Remaining Shares”) shall vest monthly on the first day
of each subsequent month, commencing on January 1, 2018, at a rate
of 1/36 of the total number of Remaining Shares per month. Vesting
will be subject to acceleration as set forth in Sections 5 and 6
below.

The
Stock Option shall be granted under the Company’s 2016 Stock
Incentive Plan (the “2016 Plan”) and pursuant to the
terms of the Company’s standard form stock option agreement
approved by the Board.

(d)
Vacations.
During the Term, the Executive shall
be entitled to five (5) weeks of paid vacation per annum, to be
taken at such times and intervals as shall be determined by the
Executive, subject to the reasonable business needs of the
Company. Up to four (4) weeks of accrued and unused vacation
time may be carried over to the subsequent calendar year, subject
to a maximum accrual cap of ten (10) weeks.

(e)
Insurance Coverage.
During the Term, the Company shall provide Executive with medical,
dental, vision, life and disability insurance as follows: the
Company shall (i) pay premiums in accordance with the
Company’s usual practices, for all medical insurance,
including heath, dental and vision coverage for Executive and his
immediate family, and (ii) provide, at its cost, disability
insurance with an annual benefit equal to 75% of the
Executive’s Base Salary. The Executive’s benefits
contemplated by this Section 4(e) shall be subject to the terms and
conditions of each applicable policy, as may be in effect from time
to time at the discretion of the Board, and to the extent the terms
of each applicable policy contradict any provision hereof, the
terms of the policy shall control.

(f)
Other Benefits.
During the Term and subject to any contribution therefor generally
required of employees of the Company, the Executive shall be
entitled to participate in any and all other employee benefit plans
from time to time in effect for employees of the Company generally,
except to the extent such plans are in a category of benefit
(including, without limitation, bonus compensation) otherwise
provided to the Executive. Such participation shall be subject to
(i) the terms of the applicable plan documents, (ii) generally
applicable Company policies and (iii) the discretion of the Board
or any administrative or other committee provided
for in or contemplated by such plan. The Company may alter, modify,
add to or delete such “other employee benefit plans” at
any time as it, in its sole judgment, determines to be appropriate,
without recourse by the Executive.

 

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(g)
Executive Expenses.
The Company shall pay or reimburse the Executive for all reasonable
and necessary business expenses incurred or paid by the Executive
in the performance of his duties and responsibilities hereunder,
subject to any maximum annual limit and other restrictions on such
expenses set by the Board for senior executives of the Company, and
to such reasonable substantiation and documentation as may be
specified by the Company from time to time. The Executive shall use
reasonable efforts to purchase airline tickets in advance or
otherwise take advantage of low-cost fares.

5.
Termination of
Employment. Executive’s employment hereunder may be
terminated as set forth below.

(a)
Death. In the event
of the Executive’s death during the Term, the
Executive’s employment hereunder shall immediately and
automatically terminate. In that event, the Company shall pay to
the Executive’s designated beneficiary or, if no beneficiary
has been designated by the Executive, to his estate, any earned and
unpaid Initial Salary or Base Salary and/or bonus amount. The
Company shall have no further obligation or liability to the
Executive or his estate. Upon the Executive’s death all
vested stock options will remain property of the estate or
designated beneficiary.

(b)
Disability.

(i) The
Company may terminate the Executive’s employment hereunder,
upon thirty (30) days’ notice to the Executive, in the event
of the Executive’s Disability. For the purpose of this
Agreement, “Disability” shall mean any illness, injury,
accident or condition of either a physical or psychological nature
that causes Executive to be unable to perform the essential
functions of his position hereunder, with or without reasonable
accommodation, for eighty (80) consecutive days during any period
of one-hundred eighty (180) calendar days.

(ii)
The Board may designate another employee to act in the
Executive’s place during any period of
Disability.

(iii)
If any question shall arise as to whether during any period the
Executive has a Disability, the Executive may, and at the request
of the Company shall, submit to a medical examination by a
physician selected by the Company to whom the Executive or his duly
appointed guardian, if any, has no reasonable objection, to
determine whether the Executive has a Disability, and such
determination shall for the purposes of this Agreement be
conclusive of the issue. If such question shall arise and the
Executive shall fail to submit to such medical examination, the
Company’s determination of the issue shall be binding on the
Executive. Nothing in this Section 5(b) shall be interpreted
contrary to any applicable and non-waivable legal requirements, if
any, under the Americans with Disabilities Act.

(c)
Termination by the Company
for Cause. The Company may immediately terminate the
Executive’s employment hereunder for Cause (as defined below)
at any time upon written notice to the Executive setting forth in
reasonable detail the nature of such Cause. The following, as
determined by the Board in its reasonable and good faith judgment,
shall constitute Cause for termination: (i) conviction or plea of
nolo contendere in a court of law of (x) any felony or (y) any
misdemeanor involving dishonesty, breach of trust, misappropriation
or illegal narcotics; (ii) commission of any act involving theft,
embezzlement, fraud, intentional dishonesty or moral turpitude or
that otherwise impairs the reputation, goodwill or business of the
Company; (iii) material breach of any of the provisions of this
Agreement or of any other agreement between the Executive and the
Company, or failure to perform the duties of the position in the
determination of the Board, which breach or failure is not cured
within thirty (30) days of notice to Executive or
(iv) demonstration of gross negligence, willful misconduct or
dereliction of duty in the execution of Executive’s duties
under this Agreement or breach of his duty of loyalty to the
Company that is materially injurious to the Company. Upon the
giving of notice of termination of the Executive’s employment
hereunder for Cause, the Company shall not have any further
obligation or liability to the Executive, other than for Initial
Salary or Base Salary or bonus earned and unpaid through the date
of termination.

(d)
By the Company without
Cause. The Company may terminate the Executive’s
employment hereunder without Cause at any time upon three (3)
months’ advance written notice.

(e)
By the Executive without
Good Reason. The Executive may terminate his employment at
any time upon at least three (3) months advance written notice to
the Company.

 

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(f)
By the Executive for Good
Reason. The Executive may immediately terminate his
employment hereunder for Good Reason (as defined below) upon
written notice to the Company. “Good Reason” shall mean
(i) material breach hereof by the Company of its obligations under
this Agreement not remedied by the Company within thirty (30)
days’ following written notice by the Executive to the
Company of such breach; (ii) diminution and material reduction in
the Executive’s authority or title within the Company by
reason of actions taken by or under the authority of the Board and
without consent of the Executive (iii) a “Change in
Control” as defined in Section 6 hereof.

 

(g)
Severance
Benefits.

(i) In
the event that the Company terminates the Executive’s
employment without Cause (as defined above) or the Executive
terminates his employment for Good Reason (as defined above),
subject to the terms and conditions of this Section 5(g), then: (A)
the Company will pay the Executive the Executive’s Initial
Salary or Base Salary (whichever is applicable) on a monthly basis
(the “Severance Payments”) , and will provide the
continuation of the benefits set forth in Section 4(e) and 4(f)
(collectively with the Severance Payments, the “Severance
Benefits”), for a period of months following
Executive’s termination equal to the greater of (1) six (6)
months or (2) the number of full months between the Effective Date
and Executive’s termination up to a maximum of twelve (12)
months (the “Severance Period”); and (B) any Stock
Options that are subject to vesting shall have vesting accelerated
with respect to the number of shares that would have vested during
the Severance Period if Executive had remained employed by the
Company during such period (and any shares of capital stock of the
Company that are subject to a right of repurchase shall have such
right of repurchase lapse with respect to the number of shares that
would have lapsed during the Severance Period if Executive had
remained employed by the Company during such period).

(ii)
The continuation of any group health plan benefits shall be to the
extent authorized by and consistent with 29 U.S.C. § 1161 et
seq. (commonly known as “COBRA”), with the cost of the
regular employer portion of the premium for such benefits paid by
the Company.

(iii)
The Executive’s right to receive Severance Benefits under
Subsection 5(g)(i) is conditioned upon (x) the Executive’s
prior execution and delivery to the Company of a general release,
in a form acceptable to and approved by the Board at its sole
discretion, of any and all claims and causes of action of the
Executive against the Company and its officers and directors,
excepting only the right to any compensation, benefits and/or
reimbursable expenses due and unpaid under Sections 4 and/or
5(g)(i) of this Agreement, and (y) the Executive’s continued
performance of those obligations hereunder that continue by their
express terms after the termination of his employment, including
without limitation those set forth in Sections 8, 9 and
10. Any Severance
Benefits to be paid hereunder shall be payable in accordance with
the payroll practices of the Company for its executives generally
as in effect from time to time, and subject to all required
withholding of taxes.

6.
Change in Control.
If the Executive’s employment is terminated by the Company
without Cause, or by the Executive for Good Reason, in either event
within six (6) months following a Change in Control (as defined
below), the Executive shall receive those Severance Benefits
provided in Section 5(g)(i) as if he were terminated more than
twelve months after the Effective Date, as well as any pro-rated
bonus portions which the Board, at its sole discretion, determines
had been earned by Executive, which Severance Benefits shall be
subject to the terms set forth in Section 5(g)(ii) and shall be in
lieu of any benefits to which the Executive is otherwise entitled
pursuant to Section 5(g). “Change in Control” means an
event or occurrence set forth in any one or more of subsections (a)
through (c) below (including an event or occurrence that
constitutes a Change in Control under one of such subsections but
is specifically exempted from another such
subsection):

(a) the
acquisition by an individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) (an
“Acquiring Person”) of beneficial ownership of any
capital stock of the Company if, after such acquisition, such
Acquiring Person beneficially owns (within the meaning of Rule
13d-3 promulgated under the Exchange Act) 50% or more of
either (i) the then-outstanding shares of common stock of the
Company (the "Outstanding Company Common Stock") or (ii) the
combined voting power of the then-outstanding securities of the
Company entitled to vote generally in the election of directors
(the "Outstanding Company Voting Securities"); provided, however,
that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change in Control: (i) any
acquisition by the Company or (ii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company;
or

 

 

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(b) any
change in Company governance such that the Continuing Directors (as
defined below) do not constitute a majority of the Board (or, if
applicable, the Board of Directors of a successor corporation to
the Company), where the term “Continuing Director”
means at any date a member of the Board (i) who was a member of the
Board on the date of the execution of this Agreement or (ii) who
was nominated or elected subsequent to such date by at least a
majority of the directors who were Continuing Directors at the time
of such nomination or election or whose election to the Board was
recommended or endorsed by at least a majority of the directors who
were Continuing Directors at the time of such nomination or
election; or

 

(c) the
consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company
or a sale or other disposition of all or substantially all of the
assets of the Company (a “Business Combination”),
unless, immediately following such Business Combination, all or
substantially all of the individuals and entities who were the
beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more
than 50% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding securities entitled
to vote generally in the election of directors, respectively, of
the resulting or acquiring corporation in such Business Combination
in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities,
respectively.

 

7.
Effect of
Termination. Upon termination of this Agreement and
Executive’s employment hereunder, all obligations and
provisions of this Agreement shall terminate except those which
contemplate performance following termination, including but not
necessarily limited to all obligations and provisions in Sections
8-11, and all obligations and provisions with respect to any
accrued and unpaid monetary obligations and vesting acceleration
provisions and the provisions of Section 8 through (and inclusive
of) 23 hereof.

8.
Confidential Information;
Assignment of Inventions.

  (a) The Executive
acknowledges that the Company and its Affiliates will continually
develop Confidential Information and Proprietary Information (as
defined below), that the Executive may develop Confidential
Information and Proprietary Information for the Company or its
Affiliates, and that the Executive may learn of Confidential
Information and Proprietary Information during the course of his
employment with the Company. The Executive agrees that, except as
required for the proper performance of his duties for the Company,
he will not, directly or indirectly, use or disclose to any third
party any Confidential Information or Proprietary Information. The
Executive understands and agrees that this restriction will
continue to apply after his employment terminates, regardless of
the reason for termination.

(b) The
Executive agrees that all Confidential Information and Proprietary
Information, including, without limitation all work products,
inventions methods, processes, designs, software, apparatuses,
compositions of matter, procedures, improvements, property, data
documentation, information or materials that the business, jointly
or separately prepared, conceived, discovered, reduced to practice,
developed or created during, in connection with, for the purpose
of, related to, or as a result of his employment with the Company,
and/or to which he has access as a result of his employment with
the Company (collectively, the “Inventions”) is and
shall remain the sole and exclusive property of the
Company.

 

(c) The
Executive by his signature on this Agreement unconditionally and
irrevocably transfers and assigns to the Company all rights, title
and interest in the Inventions (as defined above, including all
patent, copyright, trade secret and any other intellectual property
rights therein) and will take any steps and execute any further
documentation from time to time reasonably necessary to effect such
assignment free of charge to the Company. The Executive shall
further execute, upon request, whether during, or after the
termination of, his employment with the Company, any and all
applications for patents, assignments and other papers, which the
Company may deem necessary or appropriate for securing such
Inventions for the Company.

 

(d)
Except as required for the proper performance of his duties, the
Executive shall not copy or duplicate any papers, documents,
drawings, systems, data bases, memoranda, notes, plans, records,
reports files, data (including original data), disks, electronic
media etc. containing Confidential Information or Proprietary
Information (“Documents”) or remove any Documents, or
copies thereof, from Company premises. The Executive shall return
to the Company immediately after his employment terminates, and at
such other times as may be specified by the Company, all Documents
and copies thereof and all other property of the Company then in
his possession or control.

 

 

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9.
Non-Competition
Covenants. During the Term and for a period of one (1) year
from the date the Executive’s employment with the Company
terminates (the “Restricted Period”), and within the
Restricted Territory (as defined below), the Executive shall not,
directly or indirectly through any other individual or entity,
whether as an owner, employee, director, partner, consultant,
through stock ownership, investment of capital, lending of money or
property, render the same or substantially similar management
services to any individual, business or enterprise that during the
Restricted Period manufactures, develops or sells diagnostic
technologies that compete with the business or enterprises of the
Company , or any new business or enterprise which the Company
during such Restricted Period plans in good faith in the near
future to commence which is related to the Company’s
then-existing businesses or enterprises and about which the
Executive became aware and/or gained Confidential Information or
Proprietary Information by way of his employment with the Company,
including, without limitation, the research and development of drug
delivery technology for diseases in which the Company has active
research and development programs. Notwithstanding the foregoing,
nothing herein shall prohibit the Executive from being a passive
owner of shares in a publicly-traded corporation or publicly-traded
mutual fund or publicly-traded limited partnership in which the
Executive does not materially participate and in which the
Executive’s ownership interest is one percent (1%) or less.
The Executive acknowledges and agrees that the entire business of
the Company is based upon technology and Proprietary Information
that has world-wide application, but that the Company primarily
conducts its business within the United States. Therefore,
Executive acknowledges and agrees that for the purposes of this
Agreement, the “Restricted Territory” shall mean
anywhere within the United States.

10.
Non-Solicitation
Covenants. During the Restricted Period, the Executive shall
not, directly or indirectly through any other individual or entity,
whether on behalf of himself or anyone else: (a) solicit or accept
orders from any Customer of the Company for a product or service
offered or sold by, or competitive with a product or service
offered or sold by, the Company within the last twelve (12) months
of the Term; (b) induce or attempt to induce any Customer, or any
current supplier, licensee, licensor or other individual or entity
in a business relationship with the Company to cease doing business
with the Company or in any way interfere with the relationship
between that Customer, supplier, licensee, licensor or other
business relation and the Company; (c) use for his benefit or
disclose the name and/or preferences of any Customer, or current
supplier, licensee, licensor, or other business relation to any
other person; (d) solicit any of the Company’s employees to
leave the employ of the Company Group or hire anyone who is an
employee of the Company or was such an employee during the twelve
(12) months preceding the proposed date of hire, provided in either
event that the Executive had contact with or gained information
regarding the employee by way of Executive’s employment with
the Company; or (e) induce or attempt to induce any employee of the
Company to work for, render services or provide advice to or supply
Confidential Information or Proprietary Information to any other
person. During the Restricted Period, the Executive shall not
directly or indirectly assist or encourage any other person, in
carrying out any activity that would be prohibited by this
Agreement were it to be carried out by the Executive
himself.

11.
Enforcement of
Covenants. The Executive acknowledges that he has carefully
read and considered all the terms and conditions of this Agreement,
including the restraints imposed upon him pursuant to Sections 8, 9
and 10 hereof. The Executive acknowledges that the covenants
contained in Sections 8, 9 and 10 are reasonably necessary to
protect the goodwill of the Company and its exclusive property. The
Executive further acknowledges and agrees that, were he to breach
any of the covenants contained in Sections 8, 9 or 10 hereof, the
damage would be irreparable. The Executive therefore agrees that
the Company, in addition to any other remedies available to it,
shall be entitled to preliminary and permanent injunctive relief
against any breach or threatened breach by the Executive of any of
said covenants, without having to post bond.

12.
Conflicting
Agreements. The Executive hereby represents and warrants
that the execution of this Agreement and the performance of his
obligations hereunder will not breach or be in conflict with any
other agreement to which the Executive is a party or is bound and
that the Executive is not subject to any covenants against
competition or similar covenants that would affect the performance
of his obligations hereunder. The Executive will not disclose to or
use any confidential or proprietary information of a third party
without such party’s consent.

 

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13.
Definitions. Words
or phrases which are initially capitalized or are within quotation
marks shall have the meanings provided in this Section 13 and
as provided elsewhere herein. For purposes of this Agreement, the
following definitions apply:

(a)
“Affiliates”
means all persons and entities directly or indirectly controlling,
controlled by or under common control with the Company, where
control may be by either management authority or equity
interest.

(b)
“Confidential
Information” means any and all information,
inventions, discoveries, ideas, writings, communications, research,
engineering methods, developments in chemistry, manufacturing
information, practices, processes, systems, technical and
scientific information, formulae, designs, concepts, products,
trade secrets, projects, improvements and developments that relate
to the business of the Company or any Affiliate and are not
generally known by others, including but not limited to (i)
products and services, technical data, methods and processes, (ii)
marketing activities and strategic plans, (iii) financial
information, costs and sources of supply, (iv) the identity and
special needs of customers and prospective customers and vendors
and prospective vendors, and (v) the people and organizations with
whom the Company or any Affiliate has or plans to have business
relationships and those relationships. Confidential Information
also includes such information that the Company or any Affiliate
may receive or has received belonging to customers or others who do
business with the Company or any Affiliate and any publication or
literary creation of the business, developed in whole or in part
while the Executive is employed by the Company, in whatever form
published the content of which, in whole or in part, relates to the
business of the Company or any Affiliate. Confidential Information
shall not include any information or materials that Executive can
prove by written evidence (i) is or becomes publicly known
through lawful means and without breach of this Agreement by
Executive; (ii) was rightfully in Executive’s possession
or part of Executive’s general knowledge prior to the
Effective Date; or (iii) is disclosed to Executive without
confidential or proprietary restrictions by a third party who
rightfully possesses the information or materials without
confidential or proprietary restrictions.

(c)
“Customer”
means any person or entity that paid or engaged the Company for
products or services of any type within the two (2) years preceding
the Executive’s last date of employment with the Company, and
with whom Executive had contact or whose identity was learned in
either case as a result of Executive’s Employment with the
Company.

(d)
“Person” means
an individual, a corporation, an association, a partnership, an
estate, a trust and any other entity or organization.

(e)
“Proprietary
Information” means any and all intellectual property
subject to protection under applicable copyright, trademark, trade
secret or patent laws if such property is similar in any material
respect with the products and services offered by the Company or
any Affiliate.

14.
Withholding. All
payments made under this Agreement shall be reduced by any tax or
other amounts required to be withheld under applicable
law.

15.
Assignment. Neither
the Company nor the Executive may make any assignment of this
Agreement or any interest herein, by operation of law or otherwise,
without the prior written consent of the other; provided, however, that the Company may
assign its rights and shall assign its obligations under this
Agreement without the consent of the Executive in the event that
the Company shall hereafter effect a reorganization, or consolidate
with or merge into any other Person, or transfer all or
substantially all of its properties or assets to any other Person.
This Agreement shall inure to the benefit of and be binding upon
the Company and the Executive, and their respective successors,
executors, administrators, heirs and permitted
assigns.

 

-7-

 

 

16.
Severability. If
any portion or provision of this Agreement shall to any extent be
declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the
application of such portion or provision in circumstances other
than those as to which it is so declared illegal or unenforceable,
shall not be affected thereby, and each portion and provision of
this Agreement shall remain valid and enforceable to the fullest
extent permitted by law.

17.
Waiver. No waiver
of any provision hereof shall be effective unless made in writing
and signed by the waiving party. The failure of either party to
require the performance of any term or obligation of this
Agreement, or the waiver by either party of any breach of this
Agreement, shall not prevent any subsequent enforcement of such
term or obligation or be deemed a waiver of any subsequent
breach.

18.
Notices. Any and
all notices, requests, demands and other communications provided
for by this Agreement shall be in writing and shall be effective
when delivered in person or by overnight courier or delivery
service, or 3 business days after being deposited in the States
mail, postage prepaid, registered or certified, and addressed to
the business at his last known address on the books of the Company
or, in the case of the Company, at the Company’s principal
place of business, to the attention of the Chairman of the Board,
or to such other address as either party may specify by notice to
the other actually received.

19.
Entire Agreement.
This Agreement constitutes the entire agreement between the parties
and supersedes all prior communications, agreements and
understandings, written or oral, with respect to the terms and
conditions of the Executive’s employment.

20.
Amendment. This
Agreement may be amended or modified only by a written instrument
signed by the Executive and an expressly authorized representative
of the Company.

21.
Headings. The
headings and captions in this Agreement are for convenience only
and in no way define or describe the scope or content of any
provision of this Agreement.

22.
Counterparts. This
Agreement may be executed in two or more counterparts, each of
which shall be an original and all of which together shall
constitute one and the same instrument.

23.
Governing Law. This
Agreement shall be construed and enforced under and be governed in
all respects by the laws of the Commonwealth of Virginia, without
regard to the conflict of laws principles thereof.

24.
Tax
Matters.

(a) In
the event of an event constituting a change in the ownership or
effective control of Company or ownership of a substantial portion
of the assets of Company described in Code Section 280G(b)(2)(A)(i)
(a “ 280G Transaction "), Company shall cause its independent
auditors or another person or entity approved by the Company and
Executive promptly to review all payments, accelerations,
distributions and benefits that have been made to or provided to,
and are to be made, or may be made, to or provided to, Executive
under this Agreement, the 2011 Plan and any other arrangements
providing for payments or benefits contingent on the occurrence of
a 280G Transaction (irrespective of whether such payments or
benefits are then payable to Executive at that time), and any other
agreement or plan under which Executive may individually or
collectively benefit (collectively the “Original Payments"),
to determine the applicability of Code Section 4999 to Executive in
connection with such event. Company’s independent auditors or
such other approved party will perform this analysis in conformity
with the foregoing provisions and will provide Executive with a
copy of their analysis and determination. Notwithstanding anything
contained in this Agreement to the contrary, to the extent that the
Original Payments would be subject to the excise tax imposed under
Code Section 4999 (the “Excise Tax"), the Original Payments
shall be reduced (but not below zero) to the extent necessary so
that no Original Payment shall be subject to the Excise Tax, but
only if, by reason of such reduction, the net after-tax benefit
received by Executive shall exceed the net after-tax benefit
received by him if no such reduction was made. For purposes of this
Agreement, “net after-tax benefit" shall mean (a) the
Original Payments which Executive receives or is then entitled to
receive from Company that would constitute
“parachute payments" within the meaning of Code Section 280G,
less (b) the amount of all federal, state and local income taxes
payable with respect to the foregoing calculated at the maximum
marginal income tax rate for each year in which the foregoing shall
be paid to Executive (based on the rate in effect for such year as
set forth in the Code as in effect at the time of the first payment
of the foregoing), less (c) the amount of the Excise Tax imposed
with respect to the payments and benefits described in (a) above.
If a reduction is to occur pursuant to this Section 24(a), the
payments and benefits shall be reduced in the following order: any
cash severance to which Executive becomes entitled (starting with
the last payment due), then other cash amounts that are parachute
payments (starting with the last payment due), then any stock
option awards that have exercise prices higher than the then-fair
market value price of the stock (based on the latest vesting
tranches), then restricted stock and restricted stock units based
on the latest awards scheduled to be distributed, and then other
stock options based on the latest vesting tranches. The fees and
expenses of Company’s auditor or any other party for services
in connection with the determinations and calculations contemplated
by this provision will be borne by Company.

 

 

-8-

 

 

(b) The
intent of the parties is that payments and benefits under this
Agreement comply with or be exempt from Section 409A of the
Internal Revenue Code of 1986, as amended (“ Code Section
409A ") and, accordingly, to the maximum extent permitted, this
Agreement shall be interpreted to be in compliance therewith. If
the Executive notifies the Company (with specificity as to the
reason therefor) that he believes that any provision of this
Agreement (or of any award of any compensation or benefits) would
cause him to incur any additional tax or interest under Code
Section 409A and the Company concurs with such belief or the
Company independently makes such determination, the Company shall,
after consultation with the Executive, to the extent legally
permitted and to the extent it is possible to timely reform the
provision to avoid taxation under Code Section 409A, reform such
provision to attempt to comply with Code Section 409A through good
faith modifications to the minimum extent reasonably appropriate to
conform with Code Section 409A. To the extent that any provision
hereof is modified in order to comply with or be exempt from Code
Section 409A, such modification shall be made in good faith and
shall, to the maximum extent reasonably possible, maintain the
original intent and economic benefit to both the Executive and the
Company of the applicable provision without violating the
provisions of Code Section 409A.

 

For
purposes of the application of Treasury Regulation §
1.409A-1(b)(4) (or any successor provision), each payment in a
series of payments will be deemed a separate payment.

 

If the
termination of employment giving rise to the severance benefits
described in Sections 5 or 6 is not a “separation from
service" within the meaning of Treasury Regulation §
1.409A-1(h)(1), then to the extent necessary to avoid the
imposition of any accelerated or additional tax under Code Section
409A, such benefits will be deferred without interest until
Executive’ experiences a separation from
service.

 

If at
the time of Executive’s separation from service, (i) he is a
specified employee (within the meaning of Code Section 409A and
using the identification methodology selected by the Company from
time to time), and (ii) the Company makes a good faith
determination that an amount payable to Executive constitutes
deferred compensation (within the meaning of Code Section 409A) the
payment of which is required to be delayed pursuant to the
six-month delay rule set forth in Code Section 409A in order to
avoid taxes or penalties under Code Section 409A (the “ Delay
Period "), then the Company will not pay such amount on the
otherwise scheduled payment date but will instead pay it in a lump
sum on the first Executive day after such six-month period. To the
extent that any benefits to be provided during the Delay Period is
considered deferred compensation under Code Section 409A provided
on account of a “separation from service," and such benefits
are not otherwise exempt from Code Section 409A, Executive shall
pay the cost of such benefits during the Delay Period, and the
Company shall reimburse Executive, to the extent that such costs
would otherwise have been paid by the Company or to the extent that
such benefits would otherwise have been provided by the Company at
no cost to Executive, the Company’s share of the cost of such
benefits upon expiration of the Delay Period, and any remaining
benefits shall be reimbursed or provided by the Company in
accordance with the procedures specified herein.

 

To the
extent an expense or in-kind benefit provided pursuant to this
Agreement constitutes a “deferral of compensation" within the
meaning of Code Section 409A (1) the expenses will be reimbursed to
Executive as promptly as practical and in any event not later than
the last day of the calendar year after the calendar year in which
the expenses are incurred, (2) the amount of expenses eligible for
reimbursement or in-kind benefits provided during any calendar year
will not affect the amount of expenses eligible for reimbursement
or in-kind benefits provided in any other calendar year, (3) the
right to payment or reimbursement or in-kind benefits hereunder may
not be liquidated or exchanged for any other benefit.

 

 

-9-

 

 

IN WITNESS WHEREOF, this Agreement has
been executed as a sealed instrument by the Executive and the
Company, by its duly authorized representative, as of the date
first above written.

 

	
Executive:

 

	
Exactus,
Inc.

	
 

	
/s/ James R.
Erickson

	
By:  /s/ Philip Young
                 
               
 

	
 

	
James R.
Erickson

	
Philip Young

Chairman and Chief Executive
Officer

	
 

 

 

 

-10-Exhibit 4.8

 

Medifirst
Solutions, Inc.

MFST EQUITY INCENTIVE PLAN

	 

 

This Medifirst
Solutions, Inc. MFST Equity Incentive Plan (the "Plan") is designed to retain directors, executives
and selected employees and consultants and reward them for making contributions to the success of the Company.  These
objectives are accomplished by making long-term incentive awards under the Plan thereby providing Participants with a proprietary
interest in the growth and performance of the Company.

 

	1.	Definitions.

 

	 	(a)	"Board" - The Board of Directors of the Company.

 

	 	(b)	"Change in Control" - Means, and shall be deemed to have occurred upon the occurrence of, any one of the following events:

 

	 	(i)	The acquisition in one transaction by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of beneficial ownership (within the meaning of Rule l3d-3 promulgated under the Exchange Act) of shares or other securities (as defined in Section 3(a)(10) of the Exchange Act) representing 51% or more of outstanding Stock of the Company; provided, however, that a Change in Control as defined in this clause (i) shall not be deemed to occur in connection with any acquisition by the Company, an employee benefit plan of the Company or any Person who immediately prior to the effective date of this Plan is a holder of Stock (a "Current Stockholder") so long as such acquisition does not result in any Person other than the Company, such employee benefit plan or such Current Stockholder beneficially owning shares or securities representing 51% or more of the outstanding; or

 

	 	(ii)	Any election has occurred of persons as directors of the Company that causes two-thirds or more of the Board to consist of persons other than (i) persons who were members of the Board on the effective date of this Plan and (ii) persons who were nominated by the Board for election as members of the Board at a time when at least two-thirds of the Board consisted of persons who were members of the Board on the effective date of this Plan; provided, however, that any person nominated for election by the Board when at least two-thirds of the members of the Board are persons described in subclause (i) or (ii) and persons who were themselves previously nominated in accordance with this clause (2) shall, for this purpose, be deemed to have been nominated by a Board composed of persons described in subclause (ii) and that a Change in Control as defined in this clause (ii) shall not apply to a Board consisting of less than three members; or

 

	 	(iii)	Approval by the stockholders of the Company of a reorganization, merger, consolidation or similar transaction (a "Reorganization Transaction"), in each case, unless, immediately following such Reorganization Transaction, more than 50% of, respectively, the outstanding shares of common stock (or similar equity security) of the corporation or other entity resulting from or surviving such Reorganization Transaction and the combined voting power of the securities of such corporation or other entity entitled to vote generally in the election of directors, is then beneficially owned, directly or indirectly, by the individuals and entities who were the respective beneficial owners of the outstanding Stock immediately prior to such Reorganization Transaction in substantially the same proportions as their ownership of the outstanding Stock immediately prior to such Reorganization Transaction; or

 

	 	(iv)	Approval by the stockholders of the Company of (i) a complete liquidation or dissolution of the Company or (ii) the sale or other disposition of all or substantially all of the assets of the Company to a corporation or other entity, unless, with respect to such corporation or other entity, immediately following such sale or other disposition more than 50% of, respectively, the outstanding shares of common stock (or similar equity security) of such corporation or other entity and the combined voting power of the securities of such corporation or other entity entitled to vote generally in the election of directors, is then beneficially owned, directly or indirectly, by the individuals and entities who were the respective beneficial owners of the outstanding Stock immediately prior to such sale or disposition in substantially the same proportions as their ownership of the outstanding Stock immediately prior to such sale or disposition.

 

	 	(c)	"Code" - The Internal Revenue Code of 1986, as amended from time to time.

 

	 	(d)	"Company" - Medifirst Solutions, Inc. and its subsidiaries including subsidiaries of subsidiaries.

 

	 	(e)	"Exchange Act" - The Securities Exchange Act of 1934, as amended from time to time.

 

	 	(f)	"Fair Market Value" - The fair market value of the Company's issued and outstanding Stock as determined in good faith by the Board.

 

	 	(g)	"Grant" - The grant of any form of stock option, stock award, or stock purchase offer, whether granted singly, in combination, or in tandem, to a Participant pursuant to such terms, conditions and limitations as the Board may establish in order to fulfill the objectives of the Plan.

 

     

     

    

 

	 	(h)	"Grant Agreement" - An agreement between the Company and a Participant that sets forth the terms, conditions and limitations applicable to a Grant.

 

	 	(i)	"Option" - Either an Incentive Stock Option, in accordance with Section 422 of Code, or a Nonstatutory Option, to purchase the Company's Stock that may be awarded to a Participant under the Plan. A Participant who receives an award of an Option shall be referred to as an "Optionee."

 

	 	(j)	"Participant" - A director, officer, employee or consultant of the Company to whom an Award has been made under the Plan.

 

	 	(k)	"Restricted Stock Purchase Offer" - A Grant of the right to purchase a specified number of shares of Stock pursuant to a written agreement issued under the Plan.

 

	 	(l)	"Securities Act" - The Securities Act of 1933, as amended from time to time.

 

	 	(m)	"Stock" - Authorized and issued or unissued shares of common stock of the Company.

 

	 	(n)	"Stock Award" - A Grant made under the Plan in stock or denominated in units of stock for which the Participant is not obligated to pay additional consideration.

 

	2.	Administration. The Plan shall be administered by the Board, provided, however, that the Board may delegate such administration to any committee of the Board it shall designate. Subject to the provisions of the Plan, the Board shall have authority to (a) grant, in its discretion, Incentive Stock Options in accordance with Section 422 of the Code, or Nonstatutory Options, Stock Awards or Restricted Stock Purchase Offers; (b) determine in good faith the fair market value of the Stock covered by any Grant; (c) determine which eligible persons shall receive Grants and the number of shares, restrictions, terms and conditions to be included in such Grants; (d) construe and interpret the Plan; (e) promulgate, amend and rescind rules and regulations relating to its administration, and correct defects, omissions and inconsistencies in the Plan or any Grant; (f) consistent with the Plan and with the consent of the Participant, as appropriate, amend any outstanding Grant or amend the exercise date or dates thereof; (g) determine the duration and purpose of leaves of absence which may be granted to Participants without constituting termination of their employment for the purpose of the Plan or any Grant; and (h) make all other determinations necessary or advisable for the Plan's administration. The interpretation and construction by the Board of any provisions of the Plan or selection of Participants shall be conclusive and final. No member of the Board shall be liable for any action or determination made in good faith with respect to the Plan or any Grant made thereunder.

 

	3.	Eligibility.

 

	 	(a)	General:  The persons who shall be eligible to receive Grants shall be directors, officers, employees or consultants to the Company. The term consultant shall mean any person, other than an employee, who is engaged by the Company to render services and is compensated for such services. An Optionee may hold more than one Option. Any issuance of a Grant to an officer or director of the Company subsequent to the first registration of any of the securities of the Company under the Exchange Act shall comply with the requirements of Rule 16b-3.

 

	 	(b)	Incentive Stock Options:  Subject to shareholder approval of the Plan, Incentive Stock Options may only be issued to employees of the Company. Incentive Stock Options may be granted to officers or directors, provided they are also employees of the Company. Payment of a director's fee shall not be sufficient to constitute employment by the Company.

 

The
Company shall not grant an Incentive Stock Option under the Plan to any employee if such Grant would result in such employee holding
the right to exercise for the first time in any one calendar year, under all Incentive Stock Options granted under the Plan or
any other plan maintained by the Company, with respect to shares of Stock having an aggregate fair market value, determined as
of the date the Option is granted, in excess of $100,000. Should it be determined that an Incentive Stock Option granted under
the Plan exceeds such maximum for any reason other than a failure in good faith to value the Stock subject to such option, the
excess portion of such option shall be considered a Nonstatutory Option. To the extent the employee holds two (2) or more such
Options which become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of
such Option as Incentive Stock Options under the Federal tax laws shall be applied on the basis of the order in which such Options
are granted. If, for any reason, an entire Option does not qualify as an Incentive Stock Option by reason of exceeding such maximum,
such Option shall be considered a Nonstatutory Option.

 

	 	(c)	Nonstatutory Option:  The provisions of the foregoing Section 3(b) shall not apply to any Option designated as a "Nonstatutory Option" or which sets forth the intention of the parties that the Option be a Nonstatutory Option.

 

	 	(d)	Stock Awards and Restricted Stock Purchase Offers:  The provisions of this Section 3 shall not apply to any Stock Award or Restricted Stock Purchase Offer under the Plan.

 

    2

     

    

 

	4.	Stock.

 

	 	(a)	Authorized Stock: Stock subject to Grants may be either unissued or reacquired Stock.

 

	 	(b)	Number of Shares:  Subject to adjustment as provided in Section 5(i) of the Plan, the total number of shares of Stock which may be purchased or granted directly by Options, Stock Awards or Restricted Stock Purchase Offers, or purchased indirectly through exercise of Options granted under the Plan shall not exceed THIRTY-TWO MILLION (32,000,000).  If any Grant shall for any reason terminate or expire, any shares allocated thereto but remaining unpurchased upon such expiration or termination shall again be available for Grants with respect thereto under the Plan as though no Grant had previously occurred with respect to such shares. Any shares of Stock issued pursuant to a Grant and repurchased pursuant to the terms thereof shall be available for future Grants as though not previously covered by a Grant.

 

	 	(c)	Reservation of Shares:  The Company shall reserve and keep available at all times during the term of the Plan such number of shares as shall be sufficient to satisfy the requirements of the Plan. If, after reasonable efforts, which efforts shall not include the registration of the Plan or Grants under the Securities Act, the Company is unable to obtain authority from any applicable regulatory body, which authorization is deemed necessary by legal counsel for the Company for the lawful issuance of shares hereunder, the Company shall be relieved of any liability with respect to its failure to issue and sell the shares for which such requisite authority was so deemed necessary unless and until such authority is obtained.

 

	 	(d)	Application of Funds: The proceeds received by the Company from the sale of Stock pursuant to the exercise of Options or rights under Stock Purchase Agreements will be used for general corporate purposes.

 

	 	(e)	No Obligation to Exercise:  The issuance of a Grant shall impose no obligation upon the Participant to exercise any rights under such Grant.

 

	5.	Terms and Conditions of Options.

 

Options granted hereunder shall be evidenced by agreements
between the Company and the respective Optionees, in such form and substance as the Board shall from time to time approve. Option
agreements need not be identical, and in each case may includ5e such provisions as the Board may determine, but all such agreements
shall be subject to and limited by the following terms and conditions:

 

	 	(a)	Number of Shares: Each Option shall state the number of shares to which it pertains.

 

	 	(b)	Exercise Price: Each Incentive Stock Option shall state the exercise price, which shall be determined as follows:

 

	 	(i)	Any Incentive Stock Option granted to a person who at the time the Option is granted owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power or value of all classes of stock of the Company ("Ten Percent Holder") shall have an exercise price of no less than 110% of the Fair Market Value of the Stock as of the date of grant; and

 

	 	(ii)	Incentive Stock Options granted to a person who at the time the Option is granted is not a Ten Percent Holder shall have an exercise price of no less than 100% of the Fair Market Value of the Stock as of the date of grant.

 

For the purposes of this Section 5(b), the Fair Market Value
shall be as determined by the Board in good faith, which determination shall be conclusive and binding; provided however, that
if there is a public market for such Stock, the Fair Market Value per share shall be the average of the bid and asked prices on
the date of grant of the Option, or if listed on a stock exchange, the closing price on such exchange on such date of grant.

 

The exercise price of each Nonstatutory Stock Option shall
be determined at the discretion of the Board of Directors of the Corporation.

  

	 	(c)	Medium and Time of Payment:  The exercise price shall become immediately due upon exercise of the Option and shall be paid in cash or check made payable to the Company. Should the Company's outstanding Stock be registered under Section 12(g) of the Exchange Act at the time the Option is exercised, then the exercise price may also be paid as follows:

 

	 	(i)	in shares of Stock held by the Optionee for the requisite period necessary to avoid a charge to the Company's earnings for financial reporting purposes and valued at Fair Market Value on the exercise date, or

 

	 	(ii)	through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable written instructions (a) to a Company designated 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 exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Company by reason of such purchase and (b) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction.

 

    3

     

    

 

At the discretion of the Board, exercisable either at the
time of Option grant or of Option exercise, the exercise price may also be paid (i) by Optionee's delivery of a promissory note
in form and substance satisfactory to the Company and permissible under applicable securities rules and bearing interest at a rate
determined by the Board in its sole discretion, but in no event less than the minimum rate of interest required to avoid the imputation
of compensation income to the Optionee under the Federal tax laws, or (ii) in such other form of consideration permitted by the
corporations law of the State of Nevada as may be acceptable to the Board.

 

	 	(d)	Term and Exercise of Options:  Any Option granted to an employee of the Company shall become exercisable over a period of no longer than five (5) years. In no event shall any Option be exercisable after the expiration of ten (10) years from the date it is granted, and no Incentive Stock Option granted to a Ten Percent Holder shall, by its terms, be exercisable after the expiration of five (5) years from the date of the Option. Unless otherwise specified by the Board in the resolution authorizing such Option, the date of grant of an Option shall be deemed to be the date upon which the Board authorizes the granting of such Option.

 

Each Option shall be exercisable to the
nearest whole share, in installments or otherwise, as the respective Option agreements may provide. During the lifetime of an Optionee,
the Option shall be exercisable only by the Optionee and shall not be assignable or transferable by the Optionee, and no other
person shall acquire any rights therein. To the extent not exercised, installments (if more than one) shall accumulate, but shall
be exercisable, in whole or in part, only during the period for exercise as stated in the Option agreement, whether or not other
installments are then exercisable.

 

	 	(e)	Termination of Status as Employee, Consultant or Director:  If Optionee's status as an employee shall terminate for any reason other than Optionee's disability or death, then Optionee (or if the Optionee shall die after such termination, but prior to exercise, Optionee's personal representative or the person entitled to succeed to the Option) shall have the right to exercise the portions of any of Optionee's Incentive Stock Options which were exercisable as of the date of such termination, in whole or in part, within 90 days after such termination (or, in the event of "termination for good cause" as that term is defined in case law related thereto, or by the terms of the Plan or the Option Agreement or an employment agreement, the Option shall automatically terminate as of the termination of employment as to all shares covered by the Option).

 

With respect to Nonstatutory Options granted to employees,
directors or consultants, the Board may specify such period for exercise, not less than 90 days (except that in the case of "termination
for cause" or removal of a director), the Option shall automatically terminate as of the termination of employment
or services as to shares covered by the Option, following termination of employment or services as the Board deems reasonable and
appropriate. The Option may be exercised only with respect to installments that the Optionee could have exercised at the date of
termination of employment or services. Nothing contained herein or in any Option granted pursuant hereto shall be construed to
affect or restrict in any way the right of the Company to terminate the employment or services of an Optionee with or without cause.

 

	 	(f)	Disability of Optionee:  If an Optionee is disabled (within the meaning of Section 22(e)(3) of the Code) at the time of termination, the ninety (90) day period set forth in Section 5(e) shall be a period, as determined by the Board and set forth in the Option, of not less than six months nor more than one year after such termination.

 

	 	(g)	Death of Optionee:  If an Optionee dies while employed by, engaged as a consultant to, or serving as a Director of the Company, the portion of such Optionee's Option which was exercisable at the date of death may be exercised, in whole or in part, by the estate of the decedent or by a person succeeding to the right to exercise such Option at any time within (i) a period, as determined by the Board and set forth in the Option, of not less than six (6) months nor more than one (1) year after Optionee's death, which period shall not be more, in the case of a Nonstatutory Option, than the period for exercise following termination of employment or services, or (ii) during the remaining term of the Option, whichever is the lesser. The Option may be so exercised only with respect to installments exercisable at the time of Optionee's death and not previously exercised by the Optionee.

 

	 	(h)	Nontransferability of Option:  No Option shall be transferable by the Optionee, except by will or by the laws of descent and distribution.

 

	 	(i)	Recapitalization:  Subject to any required action of shareholders, the number of shares of Stock covered by each outstanding Option, and the exercise price per share thereof set forth in each such Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Stock of the Company resulting from a stock split, stock dividend, combination, subdivision or reclassification of shares, or the payment of a stock dividend, or any other increase or decrease in the number of such shares affected without receipt of consideration by the Company; provided, however, the conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration" by the Company.

 

In the event of a proposed dissolution
or liquidation of the Company, a merger or consolidation in which the Company is not the surviving entity, or a sale of all or
substantially all of the assets or capital stock of the Company (collectively, a "Reorganization"), unless otherwise
provided by the Board, this Option shall terminate immediately prior to such date as is determined by the Board, which date shall
be no later than the consummation of such Reorganization.  In such event, if the entity which shall be the surviving
entity does not tender to Optionee an offer, for which it has no obligation to do so, to substitute for any unexercised Option
a stock option or capital stock of such surviving entity, as applicable, which on an equitable basis shall provide the Optionee
with substantially the same economic benefit as such unexercised Option, then the Board may grant to such Optionee, in its sole
and absolute discretion and without obligation, the right for a period commencing thirty (30) days prior to and ending immediately
prior to the date determined by the Board pursuant hereto for termination of the Option or during the remaining term of the Option,
whichever is the lesser, to exercise any unexpired Option or Options without regard to the installment provisions of Paragraph
6(d) of the Plan; provided, that any such right granted shall be granted to all Optionees not receiving an offer to receive substitute
options on a consistent basis, and provided further, that any such exercise shall be subject to the consummation of such Reorganization.

 

    4

     

    

 

Subject to any required action of shareholders,
if the Company shall be the surviving entity in any merger or consolidation, each outstanding Option thereafter shall pertain to
and apply to the securities to which a holder of shares of Stock equal to the shares subject to the Option would have been entitled
by reason of such merger or consolidation.

 

In the event of a change in the Stock
of the Company as presently constituted, which is limited to a change of all of its authorized shares without par value into the
same number of shares with a par value, the shares resulting from any such change shall be deemed to be the Stock within the meaning
of the Plan.

 

To the extent that the foregoing adjustments
relate to stock or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. Except as expressly provided in this Section 5(i), the Optionee shall have no rights by
reason of any subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any other increase
or decrease in the number of shares of stock of any class, and the number or price of shares of Stock subject to any Option shall
not be affected by, and no adjustment shall be made by reason of, any dissolution, liquidation, merger, consolidation or sale of
assets or capital stock, or any issue by the Company of shares of stock of any class or securities convertible into shares of stock
of any class.

 

The Grant of an Option pursuant to the
Plan shall not affect in any way the right or power of the Company to make any adjustments, reclassifications, reorganizations
or changes in its capital or business structure or to merge, consolidate, dissolve, or liquidate or to sell or transfer all or
any part of its business or assets.

 

	 	(j)	Rights as a Shareholder:  An Optionee shall have no rights as a shareholder with respect to any shares covered by an Option until the effective date of the issuance of the shares following exercise of such Option by Optionee. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Section 5(i) hereof.

 

	 	(k)	Modification, Acceleration, Extension, and Renewal of Options:  Subject to the terms and conditions and within the limitations of the Plan, the Board may modify an Option, or, once an Option is exercisable, accelerate the rate at which it may be exercised, and may extend or renew outstanding Options granted under the Plan or accept the surrender of outstanding Options (to the extent not theretofore exercised) and authorize the granting of new Options in substitution for such Options, provided such action is permissible under Section 422 of the Code and applicable state securities laws. Notwithstanding the provisions of this Section 5(k), however, no modification of an Option shall, without the consent of the Optionee, alter to the Optionee's detriment or impair any rights or obligations under any Option theretofore granted under the Plan.

 

	 	(l)	Exercise Before Exercise Date:  At the discretion of the Board, the Option may, but need not, include a provision whereby the Optionee may elect to exercise all or any portion of the Option prior to the stated exercise date of the Option or any installment thereof. Any shares so purchased prior to the stated exercise date shall be subject to repurchase by the Company upon termination of Optionee's employment as contemplated by Section 5(n) hereof prior to the exercise date stated in the Option and such other restrictions and conditions as the Board may deem advisable.

  

	 	(m)	Other Provisions:  The Option agreements authorized under the Plan shall contain such other provisions, including, without limitation, restrictions upon the exercise of the Options, as the Board shall deem advisable. Shares shall not be issued pursuant to the exercise of an Option, if the exercise of such Option or the issuance of shares thereunder would violate, in the opinion of legal counsel for the Company, the provisions of any applicable law or the rules or regulations of any applicable governmental or administrative agency or body, such as the Code, the Securities Act, the Exchange Act, applicable state securities laws, corporation law of the State of Nevada, and the rules promulgated under the foregoing or the rules and regulations of any exchange upon which the shares of the Company are listed. Without limiting the generality of the foregoing, the exercise of each Option shall be subject to the condition that if at any time the Company shall determine that (i) the satisfaction of withholding tax or other similar liabilities, or (ii) the listing, registration or qualification of any shares covered by such exercise upon any securities exchange or under any state or federal law, or (iii) the consent or approval of any regulatory body, or (iv) the perfection of any exemption from any such withholding, listing, registration, qualification, consent or approval is necessary or desirable in connection with such exercise or the issuance of shares thereunder, then in any such event, such exercise shall not be effective unless such withholding, listing registration, qualification, consent, approval or exemption shall have been effected, obtained or perfected free of any conditions not acceptable to the Company.

 

	 	(n)	Repurchase Agreement:  The Board may, in its discretion, require as a condition to the Grant of an Option hereunder, that an Optionee execute an agreement with the Company, in form and substance satisfactory to the Board in its discretion ("Repurchase Agreement"), (i) restricting the Optionee's right to transfer shares purchased under such Option without first offering such shares to the Company or another shareholder of the Company upon the same terms and conditions as provided therein; and (ii) providing that upon termination of Optionee's employment with the Company, for any reason, the Company (or another shareholder of the Company, as provided in the Repurchase Agreement) shall have the right at its discretion (or the discretion of such other shareholders) to purchase and/or redeem all such shares owned by the Optionee on the date of termination of his or her employment at a price equal to: (A) the fair value of such shares as of such date of termination; or (B) if such repurchase right lapses at 20% of the number of shares per year, the original purchase price of such shares, and upon terms of payment permissible under the applicable state securities laws; provided that in the case of Options or Stock Awards granted to officers, directors, consultants or affiliates of the Company, such repurchase provisions may be subject to additional or greater restrictions as determined by the Board.

 

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	6.	Stock Awards and Restricted Stock Purchase Offers.

 

	 	(a)	Types of Grants.

 

	 	(i)	Stock Award.  All or part of any Stock Award under the Plan may be subject to conditions established by the Board, and set forth in the Stock Award Agreement, which may include, but are not limited to, continuous service with the Company, achievement of specific business objectives, increases in specified indices, attaining growth rates and other comparable measurements of Company performance. Such Awards may be based on Fair Market Value or other specified valuation.

 

	 	(ii)	Restricted Stock Purchase Offer.  A Grant of a Restricted Stock Purchase Offer under the Plan shall be subject to such (i) vesting contingencies related to the Participant's continued association with the Company for a specified time and (ii) other specified conditions as the Board shall determine, in their sole discretion, consistent with the provisions of the Plan.

 

	 	(b)	Conditions and Restrictions.  Shares of Stock which Participants may receive as a Stock Award under a Stock Award Agreement or Restricted Stock Purchase Offer under a Restricted Stock Purchase Offer may include such restrictions as the Board, as applicable, shall determine, including restrictions on transfer, repurchase rights, right of first refusal, and forfeiture provisions. When transfer of Stock is so restricted or subject to forfeiture provisions it is referred to as "Restricted Stock". Further, with Board approval, Stock Awards or Restricted Stock Purchase Offers may be deferred, either in the form of installments or a future lump sum distribution. The Board may permit selected Participants to elect to defer distributions of Stock Awards or Restricted Stock Purchase Offers in accordance with procedures established by the Board to assure that such deferrals comply with applicable requirements of the Code including, at the choice of Participants, the capability to make further deferrals for distribution after retirement. Any deferred distribution, whether elected by the Participant or specified by the Stock Award Agreement, Restricted Stock Purchase Offers or by the Board, may require the payment be forfeited in accordance with the provisions of Section 6(c). Dividends or dividend equivalent rights may be extended to and made part of any Stock Award or Restricted Stock Purchase Offers denominated in Stock or units of Stock, subject to such terms, conditions and restrictions as the Board may establish.

 

	 	(c)	Cancellation and Rescission of Grants.  Unless the Stock Award Agreement or Restricted Stock Purchase Offer specifies otherwise, the Board, as applicable, may cancel any unexpired, unpaid, or deferred Grants at any time if the Participant is not in compliance with all other applicable provisions of the Stock Award Agreement or Restricted Stock Purchase Offer, the Plan and with the following conditions:

 

	 	(i)	A Participant shall not render services for any organization or engage directly or indirectly in any business which, in the judgment of the chief executive officer of the Company or other senior officer designated by the Board, is or becomes competitive with the Company, or which organization or business, or the rendering of services to such organization or business, is or becomes otherwise prejudicial to or in conflict with the interests of the Company. For Participants whose employment has terminated, the judgment of the chief executive officer shall be based on the Participant's position and responsibilities while employed by the Company, the Participant's post-employment responsibilities and position with the other organization or business, the extent of past, current and potential competition or conflict between the Company and the other organization or business, the effect on the Company's customers, suppliers and competitors and such other considerations as are deemed relevant given the applicable facts and circumstances.  A Participant who has retired shall be free, however, to purchase as an investment or otherwise, stock or other securities of such organization or business so long as they are listed upon a recognized securities exchange or traded over-the-counter, and such investment does not represent a substantial investment to the Participant or a greater than ten percent (10%) equity interest in the organization or business.

 

	 	(ii)	A Participant shall not, without prior written authorization from the Company, disclose to anyone outside the Company, or use in other than the Company's business, any confidential information or material, as defined in the Company's Proprietary Information and Invention Agreement or similar agreement regarding confidential information and intellectual property, relating to the business of the Company, acquired by the Participant either during or after employment with the Company.

 

	 	(iii)	A Participant shall disclose promptly and assign to the Company all right, title and interest in any invention or idea, patentable or not, made or conceived by the Participant during employment by the Company, relating in any manner to the actual or anticipated business, research or development work of the Company and shall do anything reasonably necessary to enable the Company to secure a patent where appropriate in the United States and in foreign countries.

 

	 	(iv)	Upon exercise, payment or delivery pursuant to a Grant, the Participant shall certify on a form acceptable to the Board that he or she is in compliance with the terms and conditions of the Plan. Failure to comply with all of the provisions of this Section 6(c) prior to, or during the six months after, any exercise, payment or delivery pursuant to a Grant shall cause such exercise, payment or delivery to be rescinded. The Company shall notify the Participant in writing of any such rescission within two years after such exercise, payment or delivery. Within ten days after receiving such a notice from the Company, the Participant shall pay to the Company the amount of any gain realized or payment received as a result of the rescinded exercise, payment or delivery pursuant to a Grant. Such payment shall be made either in cash or by returning to the Company the number of shares of Stock that the Participant received in connection with the rescinded exercise, payment or delivery.

 

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	 	(d)	Nonassignability.

 

	 	(i)	Except pursuant to Section 6(e)(iii) and except as set forth in Section 6(d)(ii), no Grant or any other benefit under the Plan shall be assignable or transferable, or payable to or exercisable by, anyone other than the Participant to whom it was granted.

 

	 	(ii)	Where a Participant terminates employment and retains a Grant pursuant to Section 6(e)(ii) in order to assume a position with a governmental, charitable or educational institution, the Board, in its discretion and to the extent permitted by law, may authorize a third party (including but not limited to the trustee of a "blind" trust), acceptable to the applicable governmental or institutional authorities, the Participant and the Board, to act on behalf of the Participant with regard to such Awards.

 

	 	(e)	Termination of Employment.  If the employment or service to the Company of a Participant terminates, other than pursuant to any of the following provisions under this Section 6(e), all unexercised, deferred and unpaid Stock Awards or Restricted Stock Purchase Offers shall be cancelled immediately, unless the Stock Award Agreement or Restricted Stock Purchase Offer provides otherwise:

 

	 	(i)	Retirement Under a Company Retirement Plan.  When a Participant's employment terminates as a result of retirement in accordance with the terms of a Company retirement plan, the Board may permit Stock Awards or Restricted Stock Purchase Offers to continue in effect beyond the date of retirement in accordance with the applicable Grant Agreement and the exercisability and vesting of any such Grants may be accelerated.

 

	 	(ii)	Rights in the Best Interests of the Company.  When a Participant resigns from the Company and, in the judgment of the Board, the acceleration and/or continuation of outstanding Stock Awards or Restricted Stock Purchase Offers would be in the best interests of the Company, the Board may (i) authorize, where appropriate, the acceleration and/or continuation of all or any part of Grants issued prior to such termination and (ii) permit the exercise, vesting and payment of such Grants for such period as may be set forth in the applicable Grant Agreement, subject to earlier cancellation pursuant to Section 9 or at such time as the Board shall deem the continuation of all or any part of the Participant's Grants are not in the Company's best interest.

 

	 	(iii)	Death or Disability of a Participant.

 

	 	(1)	In the event of a Participant's death, the Participant's estate or beneficiaries shall have a period up to the expiration date specified in the Grant Agreement within which to receive or exercise any outstanding Grant held by the Participant under such terms as may be specified in the applicable Grant Agreement. Rights to any such outstanding Grants shall pass by will or the laws of descent and distribution in the following order: (a) to beneficiaries so designated by the Participant; if none, then (b) to a legal representative of the Participant; if none, then (c) to the persons entitled thereto as determined by a court of competent jurisdiction. Grants so passing shall be made at such times and in such manner as if the Participant were living.

 

	 	(2)	In the event a Participant is deemed by the Board to be unable to perform his or her usual duties by reason of mental disorder or medical condition which does not result from facts which would be grounds for termination for cause, Grants and rights to any such Grants may be paid to or exercised by the Participant, if legally competent, or a committee or other legally designated guardian or representative if the Participant is legally incompetent by virtue of such disability.

 

	 	(3)	After the death or disability of a Participant, the Board may in its sole discretion at any time (1) terminate restrictions in Grant Agreements; (2) accelerate any or all installments and rights; and (3) instruct the Company to pay the total of any accelerated payments in a lump sum to the Participant, the Participant's estate, beneficiaries or representative; notwithstanding that, in the absence of such termination of restrictions or acceleration of payments, any or all of the payments due under the Grant might ultimately have become payable to other beneficiaries.

 

	 	(4)	In the event of uncertainty as to interpretation of or controversies concerning this Section 6, the determinations of the Board, as applicable, shall be binding and conclusive.

 

	7. 	Change in Control. Unless otherwise provided in the applicable Grant Agreement, in the event of a Change in Control, 50% of the vesting restrictions applicable to each Participant’s Grant(s) shall terminate fully and the Participant shall immediately have the right to the delivery of share certificates or exercise of Options, i.e. to the extent that a Participant’s Option(s) are unvested, 50% of such unvested portion shall vest.

 

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	8. 	Investment Intent.  All Grants under the Plan are intended to be exempt from registration under the Securities Act provided by Rule 701 thereunder. Unless and until the granting of Options or sale and issuance of Stock subject to the Plan are registered under the Securities Act or shall be exempt pursuant to the rules promulgated thereunder, each Grant under the Plan shall provide that the purchases or other acquisitions of Stock thereunder shall be for investment purposes and not with a view to, or for resale in connection with, any distribution thereof. Further, unless the issuance and sale of the Stock have been registered under the Securities Act, each Grant shall provide that no shares shall be purchased upon the exercise of the rights under such Grant unless and until (i) all then applicable requirements of state and federal laws and regulatory agencies shall have been fully complied with to the satisfaction of the Company and its counsel, and (ii) if requested to do so by the Company, the person exercising the rights under the Grant shall (A) give written assurances as to knowledge and experience of such person (or a representative employed by such person) in financial and business matters and the ability of such person (or representative) to evaluate the merits and risks of exercising the Option, and (B) execute and deliver to the Company a letter of investment intent and/or such other form related to applicable exemptions from registration, all in such form and substance as the Company may require. If shares are issued upon exercise of any rights under a Grant without registration under the Securities Act, subsequent registration of such shares shall relieve the purchaser thereof of any investment restrictions or representations made upon the exercise of such rights.

 

	9. 	Amendment, Modification, Suspension or Discontinuance of the Plan.  The Board may, insofar as permitted by law, from time to time, with respect to any shares at the time not subject to outstanding Grants, suspend or terminate the Plan or revise or amend it in any respect whatsoever, except that without the approval of the shareholders of the Company, no such revision or amendment shall (i) decrease the price at which Grants may be granted, (ii) materially increase the benefits to Participants, or (iii) change the class of persons eligible to receive Grants under the Plan; provided, however, no such action shall alter or impair the rights and obligations under any Option, or Stock Award, or Restricted Stock Purchase Offer outstanding as of the date thereof without the written consent of the Participant thereunder. No Grant may be issued while the Plan is suspended or after it is terminated, but the rights and obligations under any Grant issued while the Plan is in effect shall not be impaired by suspension or termination of the Plan.

 

In the event of any change in the outstanding Stock
by reason of a stock split, stock dividend, combination or reclassification of shares, recapitalization, merger, or similar event,
the Board may adjust proportionally (a) the number of shares of Stock (i) reserved under the Plan, (ii) available for Incentive
Stock Options and Nonstatutory Options and (iii) covered by outstanding Stock Awards or Restricted Stock Purchase Offers; (b) the
Stock prices related to outstanding Grants; and (c) the appropriate Fair Market Value and other price determinations for such Grants.
In the event of any other change affecting the Stock or any distribution (other than normal cash dividends) to holders of Stock,
such adjustments as may be deemed equitable by the Board, including adjustments to avoid fractional shares, shall be made to give
proper effect to such event. In the event of a corporate merger, consolidation, acquisition of property or stock, separation, reorganization
or liquidation, the Board shall be authorized to issue or assume stock options, whether or not in a transaction to which Section
424(a) of the Code applies, and other Grants by means of substitution of new Grant Agreements for previously issued Grants or an
assumption of previously issued Grants.

 

	10.	Tax Withholding. The Company shall have the right to deduct applicable taxes from any Grant payment and withhold, at the time of delivery or exercise of Options, Stock Awards or Restricted Stock Purchase Offers or vesting of shares under such Grants, an appropriate number of shares for payment of taxes required by law or to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for withholding of such taxes. If Stock is used to satisfy tax withholding, such stock shall be valued based on the Fair Market Value when the tax withholding is required to be made.

 

	11.	Availability of Information. During the term of the Plan and any additional period during which a Grant granted pursuant to the Plan shall be exercisable, the Company shall make available, not later than one hundred and twenty (120) days following the close of each of its fiscal years, such financial and other information regarding the Company as is required by the bylaws of the Company and applicable law to be furnished in an annual report to the shareholders of the Company.

 

	12.	Notice. Any written notice to the Company required by any of the provisions of the Plan shall be addressed to the chief personnel officer or to the chief executive officer of the Company, and shall become effective when it is received by the office of the chief personnel officer or the chief executive officer.

 

	13.	Indemnification of Board. In addition to such other rights or indemnifications as they may have as directors or otherwise, and to the extent allowed by applicable law, the members of the Board shall be indemnified by the Company against the reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any claim, action, suit or proceeding, or in connection with any appeal thereof, to which they or any of them may be a party by reason of any action taken, or failure to act, under or in connection with the Plan or any Grant granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such claim, action, suit or proceeding, except in any case in relation to matters as to which it shall be adjudged in such claim, action, suit or proceeding that such Board member is liable for negligence or misconduct in the performance of his or her duties; provided that within sixty (60) days after institution of any such action, suit or Board proceeding the member involved shall offer the Company, in writing, the opportunity, at its own expense, to handle and defend the same.

 

	14.	Governing Law. The Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by the Code or the securities laws of the United States, shall be governed by the law of the State of Nevada and construed accordingly.

 

	15.	Termination Dates. The Plan shall terminate ten years later, subject to earlier termination by the Board pursuant to Section 9.

 

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The foregoing Medifirst Solutions, Inc. MFST Equity Incentive
Plan (consisting of 9 pages, including this page) was duly adopted and approved by the Board of Directors on December 6, 2016.

 

	 	Medifirst Solutions, Inc.
	 	 
	 	By:	/s/ Bruce Schoengood
	 	 	Name: Bruce Schoengood
	 	 	Title: Chief Executive Officer

 

 

9

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