Document:

Employment Agreement, dated as of September 14, 2006

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made
and entered into as of the 14th day of September, 2006 by and between Universal Energy Corp., a Delaware
corporation (hereinafter called the “Company”), and Dyron M. Watford (hereinafter called the “Executive”). 
 Recitals 
 A. The Board of Directors of the Company (the “Board”)
desires to assure the Company of the Executive’s continued employment in an executive capacity and to compensate him therefore. 
 B.
The Board has determined that this Agreement will reinforce and encourage the Executive’s continued attention and dedication to the Company. 
 C. The Executive is willing to make his services available to the Company on the terms and conditions hereinafter set forth. 
 Agreement 
 NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the parties agree
as follows: 
 1. Employment. 
 1.1 Employment and Term. The Corporation hereby agrees to employ the Executive as its Chief Financial Officer, in such capacity, agrees to provide services to the Corporation for the period beginning on September 14, 2006
and ending September 14, 2009 (the “Termination Date”) (or such later date as may be agreed to by the parties within 120 days prior to the Termination Date) (the “Employment Period”). 

1.2 Duties of Executive. The Executive shall serve as the Chief Financial Officer of the Company and shall diligently perform all services as
may be reasonably assigned to him by the Board, and shall exercise such power and authority as may from time to time be delegated to him by the Board. The Executive shall be required to report solely to, and shall be subject solely to the
supervision and direction of the Board at duly called meetings thereof, and no other person or group shall be given authority to supervise or direct Executive in the performance of his duties. In addition, the Executive shall regularly consult with
the Chairman of the Board with respect to the Company’s business and affairs. The Executive shall devote his working time and attention as he deems appropriate to the business and affairs of the Company (excluding any vacation and sick leave to
which the Executive is entitled), render such services to the best of his ability, and use his reasonable best efforts to promote the interests of the Company. It shall not be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions, and (C) manage personal investments, so long as such activities do not significantly interfere
with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. 

 1.3 Place of Performance. In connection with his employment by the Company, the Executive shall be
based at the Company’s principal executive offices except for travel reasonably necessary in connection with the Company’s business. The Company shall not, without the written consent of the Executive, relocate or transfer its principal
executive offices outside the area generally known as the greater Orlando, Florida area. 
 2. Compensation. 
 2.1 Base Salary. Commencing on the effective date of this Agreement, the Executive shall receive a base salary at the annual rate of not less than
$72,000 (the “Base Salary”) during the term of this Agreement, with such Base Salary payable in installments consistent with the Company’s normal payroll schedule, subject to applicable withholding and other taxes. The
Base Salary will be automatically increased to not less than $84,000 during year 2 of this Agreement and increased to not less than $96,000 during year 3 of this Agreement. The Base Salary shall also be reviewed, at least annually, for merit
increases and may, by action and in the discretion of the Board, be increased at any time or from time to time. The Base Salary shall also be increased at any time and from time to time as shall be substantially consistent with increases in base
salary awarded in the ordinary course of business to other key executives of the Company and its subsidiaries. The Base Salary, if increased, shall not thereafter be decreased for any reason. 
 2.2 Incentive Compensation. The Executive shall be entitled to receive such bonus payments or incentive compensation as may be determined at any
time or from time to time by the Board (or any authorized committee hereof) in its discretion. Such potential bonus payments and/or incentive compensation shall be considered at least annually by the Board. 
 2.3 Incentive Stock Option Grant. 
 (a) The Company hereby grants to the Executive 2,500,000 options to purchase of the common stock of the Company at a price of $1.95 per share. The stock is restricted as defined by applicable securities laws: 
  

	 	(b)	The Option is granted effective as of September 14, 2006. 

  

	 	(c)	TERM: Your right to exercise each vesting installment of the Option will expire five years after the vesting date for that installment, unless sooner terminated as a result of
termination of your employment or services with the Company or upon a Terminating Event. 

  

	 	(d)	VESTING: The Option shall vest monthly over the term of this Employment Agreement. Any Option Shares that have not yet vested shall be considered “Unvested Shares.” Upon
cessation of your employment or services on behalf of the Company for any reason, no further vesting of the Option will occur and any unvested portion of the Option will terminate. 

  

	 	(e)	 ACCELERATION OF VESTING SCHEDULE: In the event (i) the Company enters into a purchase and sale agreement whereby substantially all of the Company’s assets
will be sold to an unrelated thirty party or (ii) more than ninety-five percent (95%) of the total issued and outstanding shares of the Company are to be sold pursuant to a stock 

  

 2 

	 	 
transfer agreement to an unrelated third party (herein an “Accelerating Event”), any installments of the option not yet vested shall conditionally
vest and the Employee will have the right to exercise such installment(s) of the option subject to the following: 

  

	 	a.	Exercise. The terms and conditions of the Employee’s right to exercise any installment as set forth herein shall remain the same except that the exercise must occur concurrent
with the successful consummation of the Accelerating Event. 

  

	 	b.	Failure to Exercise or Consummate. In the event the Employee fails to exercise any installment of the option concurrent with the consummation of the Accelerating Event, or, for
whatever reason, the Accelerating Event is not consummated, the Employee’s right to exercise the conditionally vested shares expire and the vesting schedule as set forth in this Agreement shall control the date of the Employee’s right to
exercise the next installment of the option. 

  

	 	c.	Accelerating Event. Accelerating Event shall not include (i) corporate reorganizations where shareholders of the successor company(s) are substantially the same as the
Company’s stockholders and/or (ii) the assignment of shares of stock in the Company among family members, whether for estate planning or otherwise. 

 3. Expense Reimbursement and Other Benefits. 
 3.1 Expense Reimbursement. During the term of Executive’s employment hereunder, the Company, upon the submission of reasonable supporting documentation by the Executive, shall reimburse the Executive for all reasonable expenses
actually paid or incurred by the Executive in the course of and pursuant to the business of the Company, including all travel and entertainment related expenses. 
 3.2 Incentive, Savings and Retirement Plans. During the Employment Period, the Executive shall be entitled to participate in all incentive, savings and retirement plans, practices, policies and programs
applicable to other key executives of the Company and its subsidiaries, in each case comparable to those currently in effect or as subsequently amended. Such plans, practices, policies and programs, in the aggregate, shall provide the Executive with
compensation, benefits and reward opportunities at least as favorable as the most favorable of such compensation, benefits and reward opportunities provided at any time hereafter with respect to other key executives. 
 3.3 Welfare Benefit Plans. During the Employment Period, the Executive and/or the Executive’s family, as the case may be, shall be eligible
for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its subsidiaries (including, without limitation, medical, prescription, dental, disability, salary
continuance, employee life, group life, accidental death and travel accident insurance plans and programs), at least as favorable as the most favorable of such plans, practices, policies and programs in effect at any time hereafter with respect to
other key executives. 
  

 3 

 3.4 Working Facilities. During the term of Executive’s employment hereunder, the Company
shall furnish the Executive with such facilities and services suitable to his position and adequate for the performance of his duties hereunder. 
 3.5 Automobile Allowance. During the Employment Period, the Company shall provide Executive with a non-accountable automobile allowance of two hundred fifty Dollars ($250.00) per month, which amount is intended to compensate
Executive for wear and tear and, in addition, reimburse the Executive for all costs of gasoline, oil, repairs, maintenance, insurance and other expenses incurred by Executive by reason of the use of Executive’s automobile for Company business
from time to time. 
 3.6 Vacation. During the Employment Period, the Executive shall be entitled to paid vacation in accordance with
the most favorable plans, policies, programs and practices of the Company and its subsidiaries as in effect at any time hereafter with respect to other key executives of the Company and its subsidiaries; provided, however, that in no
event shall Executive be entitled to fewer than four weeks paid vacation per year. 
 4. Termination. 
 4.1 Termination for Cause. Notwithstanding anything contained to the contrary in this Agreement, this Agreement may be terminated by the Company
for Cause. As used in this Agreement, “Cause” shall only mean (i) an act or acts of personal dishonesty taken by the Executive and intended to result in substantial personal enrichment of the Executive at the expense of the Company,
(ii) subject to the following sentences, repeated violation by the Executive of the Executive’s material obligations under this Agreement which are demonstrably willful and deliberate on the Executive’s part and which are not remedied
in a reasonable period of time after receipt of written notice from the Company, or (iii) the conviction of the Executive for any criminal act which is a felony. Upon any determination by the Company’s Board of Directors that Cause exists
under clause (ii) of the preceding sentence, the Company shall cause a special meeting of the Board to be called and held at a time mutually convenient to the Board and Executive, but in no event later than ten (10) business days after
Executive’s receipt of the notice contemplated by clause (ii). Executive shall have the right to appear before such special meeting of the Board with legal counsel of his choosing to refute any determination of Cause specified in such notice,
and any termination of Executive’s employment by reason of such Cause determination shall not be effective until Executive is afforded such opportunity to appear. Any termination for Cause pursuant to clause (i) or (iii) of the first
sentence of this Section 4.1 shall be made in writing to Executive, which notice shall set forth in detail all acts or omissions upon which the Company is relying for such termination. Upon any termination pursuant to this Section 4.1, the
Executive shall be entitled to be paid his Base Salary to the date of termination and the Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of termination).

 4.2 Disability. Notwithstanding anything contained in this Agreement to the contrary, the Company, by written notice to the
Executive, shall at all times have the right to terminate this Agreement, and the Executive’s employment hereunder, if the Executive shall, as the result of mental or physical incapacity, illness or disability, fail to perform his duties and
responsibilities provided for herein for a period of more than one hundred twenty (120) consecutive days in any 12-month period. Upon any termination pursuant to this Section 4.2, the Executive shall be entitled to be paid his Base Salary
to the date of termination and the Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of termination). 
  

 4 

 4.3 Death. In the event of the death of the Executive during the term of his employment hereunder,
the Company shall pay to the estate of the deceased Executive an amount equal to the sum of (x) any unpaid amounts of his Base Salary to the date of his death, plus (y) six months of Base Salary, and the Company shall have no further
liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of the Executive’s death). 
 4.4 Termination Without Cause. At any time the Company shall have the right to terminate Executive’s employment hereunder by written notice to Executive; provided, however, that the Company shall (i) pay to Executive any
unpaid Base Salary accrued through the effective date of termination specified in such notice, and (ii) pay to the Executive in a lump sum, in cash within 30 days after the date of employment termination, an amount equal to the product of
(x) the sum of the Executive’s then Base Salary plus the amount of the highest annual bonus or other incentive compensation payment theretofore made by the Company to the Executive, multiplied times (y) one. The Company
shall be deemed to have terminated the Executive’s employment pursuant to this Section 4.4 if such employment is terminated (i) by the Company without Cause, or (ii) by the Executive voluntarily for “Good Reason.” For
purposes of this Agreement, “Good Reason” means 
 (a) the assignment to the Executive of any duties inconsistent in any respect
with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 1.2 of this Agreement, or any other action by the Company which results in a
diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof
given by the Executive; 
 (b) any failure by the Company to comply with any of the provisions of Section 2, Section 3,
Section 7 or Section 17 of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 (c) the Company’s requiring the Executive to be based at any office or location other than the greater Orlando, Florida area except
for travel reasonably required in the performance of the Executive’s responsibilities; 
 (d) any purported termination by the Company
of the Executive’s employment otherwise than as expressly permitted by this Agreement; 
 (e) any failure by the Company to comply with
and satisfy Section 10(c) of this Agreement; or 
 (f) any termination by the Executive for any reason during the three-month period
following the effective date of any “Change in Control”. 
 For purposes of this Section 4.4, any good faith determination of
“Good Reason” made by the Executive shall be conclusive. 
 5. Change in Control. For purposes of this Agreement, a
“Change in Control” shall mean: 
 (a) The acquisition (other than by or from the Company), at any time after the date hereof, by
any person, entity or “group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the 
  

 5 

 Securities Exchange Act of 1934 (the “Exchange Act”), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 15%or more of either the then outstanding shares of common stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of directors; or

 (b) All or any of the individuals who, as of the date hereof, constitute the Board (as of the date hereof the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the
election of the directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; or

 (c) Approval by the shareholders of the Company of (A) a reorganization, merger or consolidation with respect to which persons who
were the shareholders of the Company immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than 75% of the combined voting power entitled to vote generally in the election of directors of the
reorganized, merged or consolidated company’s then outstanding voting securities, (B) a liquidation or dissolution of the Company, or (C) the sale of all or substantially all of the assets of the Company, unless the approved
reorganization, merger, consolidation, liquidation, dissolution or sale is subsequently abandoned. 
 (d) The approval by the Board of the
sale, distribution and/or other transfer or action (and/or series of sales, distributions and/or other transfers or actions from time to time or over a period of time), that results in the Company’s ownership of less than 50% of the
Company’s current assets. 
 6. Restrictive Covenants. 
 6.1 Nondisclosure. During his employment and for twelve (12) months thereafter, Executive shall not divulge, communicate, use to the detriment
of the Company or for the benefit of any other person or persons, or misuse in any way, any Confidential Information (as hereinafter defined) pertaining to the business of the Company. Any Confidential Information or data now or hereafter acquired
by the Executive with respect to the business of the Company shall be deemed a valuable, special and unique asset of the Company that is received by the Executive in confidence and as a fiduciary, and Executive shall remain a fiduciary to the
Company with respect to all of such information. For purposes of this Agreement, “Confidential Information” means all material information about the Company’s business disclosed to the Executive or known by the Executive as a
consequence of or through his employment by the Company (including information conceived, originated, discovered or developed by the Executive) after the date hereof, and not generally known. 
 6.2 Nonsolicitation of Employees. While employed by the Company and for a period of six (6) months thereafter, Executive shall not directly
or indirectly, for himself or for any other person, firm, corporation, partnership, association or other entity, attempt to employ or enter into any contractual arrangement with any employee or former employee of the Company, unless such employee or
former employee has not been employed by the Company for a period in excess of six months. 
 6.3 Injunction. It is recognized and
hereby acknowledged by the parties hereto that a breach by the Executive of any of the covenants contained in Section 6.1, 6.2 or 6.3 of this Agreement 
  

 6 

 will cause irreparable harm and damage to the Company, the monetary amount of which may be virtually impossible to
ascertain. As a result, the Executive recognizes and hereby acknowledges that the Company shall be entitled to an injunction from any court of competent jurisdiction enjoining and restraining any violation of any or all of the covenants contained in
this Section 6 by the Executive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall be cumulative and in addition to whatever other remedies the Company may possess.

 7. Election of Executive as Director. Contemporaneously herewith, the Board is appointing Executive to fill the vacancy of Chairman
of the Board. For so long as the Executive continues to serve as the Company’s Chief Financial Officer, the Company shall cause the nomination of the Executive as Chairman of the Board of the Company at each stockholder meeting at which
election of directors is considered and otherwise use its best efforts to cause the election of the Executive as Chairman of the Board of the Company. 
 8. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. 
 9. Notices: Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given when delivered by hand or when deposited in the United States mail, by
registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	If to the Company:	  	 Universal Energy Corp.
 4044 W Lake Mary
Blvd.
 #104-347
 Lake Mary, FL 32746

		
	If to the Executive:	  	 Dyron M. Watford
 5838 Caymus Loop
 Windermere, Fl 34786

		
	with a copy to:	  	 Greenberg Traurig LLP
 450 S. Orange Avenue
 Suite 650
 Orlando, Florida 32801

 or to such other addresses as either party hereto may from time to time give notice of to the other in the
aforesaid manner. 
 10. Successors. 
 (a) This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. 
 (b) This Agreement shall inure
to the benefit of and be binding upon the Company and its successors and assigns. 
  

 7 

 (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of
law or otherwise. 
 11. Severability. The invalidity of any one or more of the words, phrases, sentences, clauses or sections
contained in this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or more of the
words, phrases, sentences, clauses or sections contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, or section or
sections had not been inserted. If such invalidity is caused by length of time or size of area, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity. 
 12. Waivers. The waiver by either party hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be
construed as a waiver of any subsequent breach or violation. 
 13. Damages. Nothing contained herein shall be construed to prevent
the Company or the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breach of any term or provision of this Agreement. 
 14. No Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any
person (other than the parties hereto and, in the case of Executive, his heirs, personal representative(s) and/or legal representative) any rights or remedies under or by reason of this Agreement. 
 15. Full Settlement. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement. The Company agrees to pay, to the full extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as
a result of any contest by the Executive about the amount of any payment pursuant to Section 16 of this Agreement), plus in each case interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code. 
 16. Certain Reduction of Payments by the Company. 
 (d) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be nondeductible by the Company for Federal income tax purposes because of Section 280G of the Code, then the
aggregate present value of amounts payable or distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or 
  

 8 

 distributions pursuant to this Agreement are hereinafter referred to as “Agreement Payments”) shall be reduced
to the Reduced Amount. The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Agreement Payments without causing any Payment to be nondeductible by the Company because of
Section 280G of the Code. Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further that any Payment which is not an Agreement Payment would nevertheless be nondeductible by the Company for Federal
income tax purposes because of Section 280G of the Code, then the aggregate present value of Payments which are not Agreement Payments shall also be reduced (but not below zero) to an amount expressed in present value which maximizes the
aggregate present value of Payments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. For purposes of this Section 16, present value shall be determined in accordance with
Section 280G(d)(4) of the Code. Any amount which is not paid in the taxable year in which it was originally scheduled to be paid as a result of the postponement thereof pursuant hereto shall be payable in the next succeeding taxable year in
which such payment will not result in the disallowance of a deduction pursuant to either Section 162(m) or 280G of the Code; provided, however, that all postponed payments shall be placed in a Rabbi trust or similar vehicle for the benefit of
the Executive in such a way that the amounts so transferred are not taxable to such person or deductible by the Company until payment from such vehicle to the Executive is made. In the event a payment has been made to the Executive, but then
disallowed as a deduction by the Internal Revenue Service and return of the payment is required into the trust, said payment to the Executive shall be treated as a loan and said payment to the trust shall be treated as repayment of said loan. The
Company shall not pledge, hypothecate or otherwise encumber any amounts held in the trust or other similar vehicle for the benefit of the Executive hereunder. 
 (e) All determinations required to be made under this Section 16 shall be made by the Orlando, Florida office of Tedder, James, Worden & Associates, P.A. or, at the Executive’s option, any other
nationally or regionally recognized firm of independent public accountants selected by the Executive and approved by the Company, which approval shall not be unreasonably withheld or delayed (the “Accounting Firm”), which shall provide
(i) detailed supporting calculations both to the Company and the Executive within twenty (20) business days of the termination of Executive’s employment or such earlier time as is requested by the Company, and (ii) an opinion to
the Executive that he has substantial authority not to report any excise tax on his Federal income tax return with respect to any Payments. Any such determination by the Accounting Firm shall be binding upon the Company and the Executive. The
Executive shall determine which and how much of the Payments shall be eliminated or reduced consistent with the requirements of this Section 16, provided that, if the Executive does not make such determination within ten business days of the
receipt of the calculations made by the Accounting Firm, the Company shall elect which and how much of the Payments shall be eliminated or reduced consistent with the requirements of this Section 16 and shall notify the Executive promptly of
such election. Within five business days thereafter, the Company shall pay to or distribute to or for the benefit of the Executive such amounts as are then due to the Executive under this Agreement. All fees and expenses of the Accounting Firm
incurred in connection with the determinations contemplated by this Section 16 shall be borne by the Company. 
 (f) As a result of the
uncertainty in the application of Section 280G of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Payments will have been made by the Company which should not have been made
(“Overpayment”) or that additional Payments which will not have been made by the Company could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. In the event that the
Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Executive which the Accounting Firm believes has a high probability of success, determines 
  

 9 

 that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the benefit of the
Executive shall be treated for all purposes as a loan ab initio to the Executive which the Executive shall repay to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided,
however, that no such loan shall be deemed to have been made and no amount shall be payable by the Employee to the Company if and to the extent such deemed loan and payment would not either reduce the amount on which the Executive is subject to tax
under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, any such
Underpayment shall be promptly paid by the Company to or for the benefit of the Executive together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. 
 17. Conflicts With Certain Existing Arrangements. The Company agrees that (x) it shall not hereafter acquire a “Conflicting
Organization” or otherwise expand its present business activities such that Executive could reasonably be expected to be deemed in breach or violation of such non-competition covenants, and (y) it shall indemnify and hold harmless the
Executive from any and all damages that Executive may hereafter suffer or incur by reason of any such Company acquisition or expansion of business after the date hereof. 
 18. Reimbursement of Legal Expenses. The Company shall promptly reimburse Executive for all reasonable legal fees incurred by Executive in connection with the preparation, negotiation and execution of this
Agreement and ancillary documents. 
 19. Indemnification. The Company agrees to promptly execute and deliver to Executive an
Indemnification Agreement within 15 days of the date of execution of this Agreement. 
  

 10 

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

			
	COMPANY:
	
	  
 /s/ Glen
Woods

		
	By:	 	 Glen Woods

	
	EXECUTIVE:
	
	  
 /s/ Dyron M.
Watford

  

 11Stock Option Agreement between Universal Energy Corp. and Dyron M. Watford

 Exhibit 10.3 
 STOCK OPTION AGREEMENT 
 This Stock Option Agreement (this “Agreement”) is made as of
September 14, 2006 by and between Universal Energy Corp. (the “Corporation”) and Dyron M. Watford (the “Optionee”). 
 RECITALS 
  

	A.	Optionee is a Chief Financial Officer of the Corporation. In consideration of Optionee’s serving as such, the Corporation’s board of directors has agreed to grant stock
options to the Optionee to purchase shares of the Corporation’s common stock (the “Shares”). The stock options granted herein are not “incentive stock options” under Section 422 of the Internal Revenue Code of
1986, as amended. 

 NOW THEREFORE, specifically incorporating these recitals herein, it is agreed as
follows: 
 AGREEMENT 
 SECTION 1 
 GRANT OF OPTIONS 
  

	1.1.	NUMBER OF SHARES. Subject to the terms and conditions of this Agreement, the Corporation grants to Optionee, Options to purchase from the Corporation 2,500,000 shares (the
“Option Shares”). 

  

	1.2.	EXERCISE PRICE. Each Option Share is exercisable, upon vesting, at the lesser price of $1.95 or the fair market value of the shares at the time of exercise (the
“Option Price”). 

  

	1.3.	TERM. The Expiration Date for all Options issued hereunder shall be five years after the vesting date of that installment. 

  

	1.4.	VESTING. The Options granted herein shall vest as follows (i)-0- of the Option Shares granted herein vest immediately, and (ii) 2,500,000 of the Option Shares granted
herein shall vest pro rata monthly over three years (the term of Employment Agreement between the Company and the Optionee). 

  

	1.5.	CONDITIONS OF OPTION. The Options may be exercised immediately upon vesting, subject to the terms and conditions as set forth in this Agreement. 

 SECTION 2 
 EXERCISE OF OPTION

  

	2.1.	DATE EXERCISABLE. The Options shall become exercisable by Optionee in accordance with Section 1.4 above. 

  

	2.2.	MANNER OF EXERCISE OF OPTIONS AND PAYMENT FOR COMMON STOCK. The Options may be exercised by the Optionee, in whole or in part, by giving written notice to the Secretary of
the Corporation, setting forth the number of Shares with respect to which Options are being exercised. The purchase price of the Option Shares upon exercise of the Options by the Optionee shall be paid in full in cash, or as otherwise permitted by
the Company’s stock option plan. 

	2.3.	STOCK CERTIFICATES. Promptly after any exercise in whole or in part of the Options by Optionee, the Corporation shall deliver to Optionee a certificate or certificates for
the number of Shares with respect to which the Options were so exercised, registered in Optionee’s name. 

 SECTION 3

 NONTRANSFERABILITY 
  

	3.1	RESTRICTION. The Options are not transferable by Optionee. 

 SECTION 4 
 NO RIGHTS AS SHAREHOLDER PRIOR TO EXERCISE 
  

	4.1	Optionee shall not be deemed for any purpose to be a stockholder of Corporation with respect to any shares subject to the Options under this Agreement to which the Options shall not
have been exercised. 

 SECTION 5 
 ADJUSTMENTS 
  

	5.1	NO EFFECT ON CHANGES IN CORPORATION’S CAPITAL STRUCTURE. The existence of the Options shall not affect in any way the right or power of the Corporation or its
shareholders to make or authorize any adjustments, recapitalization, reorganization, or other changes in the Corporation’s capital structure or its business, or any merger or consolidation of the Corporation, or any issue of bonds, debentures,
preferred or preference stocks ahead of or affecting the Option Shares, or the dissolution or liquidation of the Corporation, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of
a similar character or otherwise. 

  

	5.2	ADJUSTMENT TO OPTION SHARES. The Option Shares are subject to adjustment upon recapitalization, reclassification, consolidation, merger, reorganization, stock dividend,
reverse or forward stock split and the like. If the Corporation shall be reorganized, consolidated or merged with another corporation, Optionee shall be entitled to receive upon the exercise of the Option the same number and kind of shares of stock
or the same amount of property, cash or securities as Optionee would have been entitled to receive upon the happening of any such corporate event as if Optionee had been, immediately prior to such event, the holder of the number of Shares covered by
the Option. 

 SECTION 6 
 TERMINATION OF EMPLOYMENT OR DEATH 
  

	6.1	The terms and conditions of paragraph 9 of the Company’s 2006 Non-Statutory Stock Option Plan, adopted on September 13, 2006, is incorporated herein by references, and
shall govern the rights and privileges of the Optionee with respect to the issues addressed therein. 

 SECTION 7 
 MISCELLANEOUS PROVISIONS 
  

	7.1	DISPUTES. Any dispute or disagreement that may arise under or as a result of this Agreement, or any question as to the interpretation of this Agreement, may be determined by
the Corporation’s board of directors in its absolute and uncontrolled discretion, and any such determination shall be final, binding, and conclusive on all affected persons. 

  

	7.2	NOTICES. Any notice that a party may be required or permitted to give to the other shall be in writing, and may be delivered personally, by overnight courier or by certified
or registered mail, postage prepaid, addressed to the parties at their current principal addresses, or such other address as either party, by notice to the other, may designate in writing from time to time. 

  

	7.3	LAW GOVERNING. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. 

  

	7.4	TITLES AND CAPTIONS. All section titles or captions contained in this Agreement are for convenience only and shall not be deemed part of the context nor effect the
interpretation of this Agreement. 

  

	7.5	ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties and supersedes any prior understandings and agreements between them respecting the
subject matter of this Agreement. 

  

	7.6	AGREEMENT BINDING. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 

  

	7.7	PRONOUNS AND PLURALS. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural as the identity of the person
or persons may require. 

  

	7.8	FURTHER ACTION. The parties hereto shall execute and deliver all documents, provide all information and take or forbear from all such action as may be necessary or
appropriate to achieve the purposes of the Agreement. 

  

	7.9	PARTIES IN INTEREST. Nothing herein shall be construed to be to the benefit of any third party, nor is it intended that any provision shall be for the benefit of any third
party. 

  

	7.10	SAVINGS CLAUSE. If any provision of this Agreement, or the application of such provision to any person or circumstance, shall be held invalid, the remainder of this
Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. 

 [SIGNATURES ON NEXT PAGE] 

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

  

			
	 UNIVERSAL ENERGY CORP.

		
	 By:
	 	 /s/ Glen Woods

	 Name:
	 	Glen Woods
	 Title:
	 	President

 The undersigned Optionee hereby acknowledges receipt of an executed original of this Agreement, accepts the
Options granted hereunder, and agrees to the terms and conditions thereof. 
  

	
	 OPTIONEE

	
	 /s/ Dyron M. Watford

 UNIVERSAL ENERGY CORP. 
 NOTICE OF EXERCISE OF STOCK OPTION 
 The undersigned hereby exercises the Stock Options granted
by Universal Energy Corp. and seeks to purchase
                                        
         shares of Common Stock of the Corporation pursuant to said Options. The undersigned understands that this exercise is subject to all the terms and provisions of the Stock Option Agreement dated as
of                                     . 
 Enclosed is a check in the sum of US
$                                 as payment for such shares. 
  

	
	  

	Signature of Optionee
	
	Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]