Document:

Exhibit 10.2

ACQUISITION AGREEMENT

                        ACQUISITION AGREEMENT (the "Agreement") dated as of April 15th, 2016, by and among Amazing Energy Oil and Gas Co., a Nevada corporation whose principal office is located at 701 S. Taylor St., Suite 470, LB 113, Amarillo, Texas 79101 ("AEOG") and each person listed on Exhibit A ("SELLERS") who are owners of shares of common stock of Jilpetco, Inc., a Texas corporation ("JILP") who have executed a subscription agreement which will be appended hereto at closing whose principal office is located at 701 S. Taylor Street, Suite 470, LB 113, Amarillo, Texas 79101.

R E C I T A L S

A.                JILP is engaged in the drilling for oil and gas.

B.                 SELLERS own all of the outstanding shares of JILP set forth on Exhibit A.

C.                 AEOG is a publicly traded company engaged in the business of oil and gas exploration, development, and on a limited scale the mining of properties containing valuable mineral deposits.

D.                AEOG desires to acquire one hundred percent (100%) of the issued and outstanding shares of common stock of JILP, in consideration of AEOG paying Five Hundred Thousand Dollars ($500,000.00) to SELLERS.

AGREEMENT

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

ARTICLE I

ACQUISITION OF JILP COMMON STOCK BY AEOG

1.1              Acquisition of JILP. In the manner and subject to the terms and conditions set forth herein, AEOG shall acquire from SELLERS, one hundred percent (100%) of the issued and outstanding shares of common stock of JILP (the "JILP shares of common stock").

1.2              Effective Date. If all of the conditions precedent to the obligations of each of the parties hereto as hereinafter set forth shall have been satisfied or shall have been waived, the transactions set forth herein (the "Exchange") shall become effective on the Closing Date as defined herein.

1.3              Consideration and Due Date of Payment

	
(a)

	
In connection with the acquisition of the JILP shares of common stock, AEOG will pay the SELLERS Five Hundred Thousand Dollars ($500,000.00).

	
(b)

	
The consideration in 1.3 (a) above is due on April 15, 2016, but may be paid on or before one hundred and twenty (120) days from April 15, 2016.

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1.4              Effect of Stock Purchase. As of the Closing Date, all of the following shall occur:

(a)            The Articles of Incorporation of JILP and AEOG, as in effect on the Effective Date, shall continue in effect without change or amendment.

(b)            The Bylaws of JILP and AEOG, as in effect on the Closing Date, shall continue in effect without change or amendment.

1.5              Disclosure Schedules. Simultaneously with the execution of this Agreement: (a) AEOG shall deliver a schedule relating to AEOG which, along with the reports of AEOG filed with the Securities and Exchange Commission, shall be referred to as the "AEOG Disclosure Schedule", and (b) SELLERS and JILP shall deliver a schedule relating to SELLERS and JILP (the "JILP Disclosure Schedule" and collectively with the AEOG Disclosure Schedule, the "Disclosure Schedules") setting forth the matters required to be set forth in the Disclosure Schedules as described elsewhere in this Agreement. The Disclosure Schedules shall be deemed to be part of this Agreement. AEOG'S Disclosure Schedule shall include, but is not limited to, all publicly filed documents of AEOG.

1.6              Further Action. From time to time after the Closing, without further consideration, the parties shall execute and deliver such instruments of conveyance and transfer and shall take such other action as any party reasonably may request to more effectively transfer the JILP shares of common stock and AEOG Shares.

ARTICLE II

CONDUCT OF BUSINESS PENDING CLOSING; STOCKHOLDER APPROVAL

AEOG, SELLERS and JILP covenant that between the date hereof and the Closing Date (as hereinafter defined):

2.1              Access by SELLERS and JILP. AEOG shall afford to SELLERS, JILP, and their legal counsel, accountants and other representatives, throughout the period prior to the Closing Date, full access, during normal business hours, to (a) all of the books, contracts and records of AEOG, and shall furnish SELLERS and JILP, during such period, with all information concerning AEOG that SELLERS or JILP may reasonably request and (b) the properties of AEOG in order to conduct inspections at SELLERS and JILP's expense to determine that AEOG is operating in material compliance with all applicable federal, state and local and foreign statutes, rules and regulations, and that AEOG's assets are substantially in the condition and of the capacities represented and warranted in this Agreement. Any such investigation or inspection by SELLERS or JILP shall not be deemed a waiver of, or otherwise limit, the representations, warranties and covenants contained herein. SELLERS and JILP shall grant identical access to AEOG and its agents.

2.2              Conduct of Business. During the period from the date hereof to the Closing Date, the business of AEOG and JILP shall be operated by the respective entities in the usual and ordinary course of such business and in material compliance with the terms of this Agreement. Without limiting the generality of the foregoing:

(a)                AEOG and JILP, respectively, shall each use their reasonable efforts to (i) keep available the services of the present agents of AEOG and JILP; (ii) complete or maintain all existing

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material agreements; (iii) maintain the integrity of all confidential information of AEOG and JILP; and (iv) comply in all material respects with al l applicable laws; and

                        (b)               Except as contemplated by this Agreement, AEOG and JILP shall not (i) sell, lease, assign, transfer or otherwise dispose of any of their material assets or property including cash; (ii) agree to assume, guarantee, endorse or in any way become responsible or liable for, directly or indirectly, any material contingent obligation; make any material capital expenditures; (iii) enter into any transaction concerning a merger or consolidation other than with the other party hereto or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, or assets, or stock or securities convertible into stock of any subsidiary, or make any material change in the present method of conducting business; (iv) declare or pay any dividends or make any other distribution (whether in cash or property) on any shares of its capital stock or purchase, redeem, retire or otherwise acquire for value any shares of its capital stock or warrants or options whether now or hereafter outstanding; (v) make or suffer to exist any advances or loans to, or investments in any person, firm, corporation or other business entity not a party to this Agreement; (vi) enter into any new material agreement or be or become liable under any new material agreement, for the lease, hire or use of any real or personal property; (vii) create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property or assets, income or profits, whether now owned or hereafter acquired; or (viii) agree to do any of the foregoing.

2.3             Exclusivity to SELLERS and JILP. AEOG and its officers, directors, representatives and agents, from the date hereof, until the Closing Date (unless this Agreement shall be earlier terminated as hereinafter provided), shall not hold discussions with any person or entity, other than SELLERS and JILP or their respective agents concerning the Exchange, nor solicit, negotiate or entertain any inquiries, proposals or offers to purchase the business of AEOG, nor the shares of capital stock of AEOG from any person other than SELLERS and JILP, nor, except in connection with the normal operation of AEOG's respective business, or as required by law, or as authorized in writing by SELLERS, disclose any confidential information concerning AEOG to any person other than SELLERS, JILP and SELLERS and JILP's representatives or agents. SELLERS and JILP shall from the date hereof, and until the Closing Date, owe the identical obligations of confidentiality and exclusivity to AEOG concerning the Exchange as stated in this Section.

2.4              Board and Shareholder Approval. The Board of Directors of AEOG has determined that the Agreement is fair to and in the best interests of its stockholders and has approved and adopted this Agreement and the terms of the Agreement. Shareholders of AEOG will not vote or approve of the transaction contemplated by this agreement. This Agreement constitutes, and all other agreements contemplated hereby will constitute, when executed and delivered by AEOG, the valid and binding obligation of AEOG, enforceable in accordance with their respective terms.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF AEOG

Except as set forth in the AEOG Disclosure Schedule (which incorporates all the reports of AEOG filed with the United States Securities and Exchange Commission) AEOG represents and warrants to SELLERS and JILP as follows:

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3.1              Organization and Standing. AEOG is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. AEOG has all requisite corporate power to carry on its business as it is now being conducted and is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where such qualification is necessary under applicable law except where the failure to qualify (individually or in the aggregate) will not have any material adverse effect on the business or prospects of AEOG. The copies of the Articles of Incorporation and Bylaws of AEOG, as amended to date, which have been delivered to SELLERS and JILP, are true and complete copies of these documents as now in effect.

3.2              Taxes. For purposes of this Agreement, (A) "Tax" (and, with correlative meaning, "Taxes") shall mean any federal, state, local or foreign income, alternative or add-on minimum, business, employment, franchise, occupancy, payroll, property, sales, transfer, use, value added, withholding or other tax, levy, impost, fee, imposition, assessment or similar charge together with any related addition to tax, interest, penalty or fine thereon; and (B) "Returns" shall mean all returns (including, without limitation, information returns and other material information), reports and forms relating to Taxes.

	
(a)

	
AEOG has filed all Tax returns. AEOG will pay in full or has adequately reserved against all Taxes otherwise assessed against it through the Closing Date.

	
(b)

	
AEOG is not a party to any pending action or proceeding by any governmental authority for the assessment of any Tax, and, to the knowledge of AEOG, no claim for assessment or collection of any Tax related to AEOG has been asserted against AEOG that has not been paid. There are no Tax liens upon the assets of AEOG. There is no valid basis, to AEOG's knowledge, for any assessment, deficiency, notice, 30-day letter or similar intention to assess any Tax to be issued to AEOG by any governmental authority.

3.3              Compliance with Laws and Regulations. AEOG has complied and is presently complying, in all material respects, with all laws, rules, regulations, orders and requirements (federal, state and local and foreign) applicable to it in all jurisdictions where the business of AEOG is conducted or to which AEOG is subject, including all requisite filings with the SEC. AEOG has not made any misrepresentation nor has omitted any material facts in any of its SEC filings to date.

3.4             Hazardous Materials. To the knowledge of AEOG, AEOG has not violated, or received any written notice from any governmental authority with respect to the violation of any law, rule, regulation or ordinance pertaining to the use, maintenance, storage, transportation or disposal of "Hazardous Materials." As used herein, the term "Hazardous Materials" means any substance now or hereafter designated pursuant to Section 307(a) and 311 (b)(2)(A) of the Federal Clean Water Act, 33 USC§§ 1317(a), 1321 (b)(2)(A), Section 112 of the Federal Clean Air Act, 42 USC§ 3412, Section 3001 of the Federal Resource Conservation and Recovery Act, 42 USC § 6921, Section 7 of the Federal Toxic Substances Control Act, 15 USC § 2606, or Section 101 (14) and Section 102 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 USC §§ 9601(14), 9602.

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3.5             No Breaches. The making and performance of this Agreement will not (i) conflict with or violate the Articles of Incorporation or the Bylaws of AEOG, (ii) violate any laws, ordinances, rules, or regulations, or any order, writ, injunction or decree to which AEOG is a party or by which AEOG or any of its businesses, or operations may be bound or affected or (iii) result in any breach or termination of, or constitute a default under, or constitute an event which, with notice or lapse of time, or both, would become a default under, or result in the creation of any encumbrance upon any material asset of AEOG under, or create any rights of termination, cancellation or acceleration in any person under, any contract.

3.6              Employees. AEOG has does not have any employees that are represented by any labor union or collective bargaining unit. Nor does AEOG have any employment agreements or compensation plans which are in effect with anyone.

3.7              Financial Statements. Year-end audited financial statements and unaudited quarterly stub financial statements are available online at www.sec.gov (collectively the "Financial Statements"). The Financial Statements present fairly, in all material respects, the financial position on the dates thereof and results of operations of AEOG for the periods indicated, prepared in accordance with generally accepted accounting principles ("GAAP"), consistently applied. There are no assets of AEOG the value of which is materially overstated in said balance sheets.

3.8              Absence of Certain Changes or Events. Except as set forth in the AEOG Disclosure Schedule, since January 31, 2016 (the "Balance Sheet Dates"), there has not been:

	
(a)       

	
any material adverse change in the financial condition, properties, assets, liabilities or business of AEOG;

	
(b)      

	
any material damage, destruction or loss of any material properties of AEOG, whether or not covered by insurance;

	
(c)      

	
any material adverse change in the manner in which the business of AEOG and has been conducted;

	
(d)      

	
any material adverse change in the treatment and protection of trade secrets or other confidential information of AEOG; and

	
(e)      

	
any occurrence not included in paragraphs (a) through (d) of this Section 3.8 which has resulted, or which AEOG has reason to believe, might be expected to result in, a material adverse change in the business or prospects of AEOG.

3.9              Government Licenses, Permits, Authorizations. AEOG has all governmental licenses, permits, authorizations and approvals necessary for the conduct of its business as currently conducted ("Licenses and Permits"). All such Licenses and Permits are in full force and effect, and no proceedings for the suspension or cancellation of any thereof is pending or, to the knowledge of AEOG, threatened.

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3.10          Employee Benefit Plans.

	
(a)      

	
AEOG has no bonus, material deferred compensation, material incentive compensation, stock purchase, stock option, severance pay, termination pay, hospitalization, medical, insurance, supplemental unemployment benefits, profit-sharing, pension or retirement plan.

	
(b)      

	
AEOG has not maintained, sponsored or contributed to, any employee pension benefit plan (as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA")) or any similar pension benefit plan under the laws of any foreign jurisdiction.

	
(c)      

	
Except as set forth in the AEOG Disclosure Schedule, neither the execution, delivery or performance of this Agreement, nor the consummation of the Agreement or any of the other transactions contemplated by this Agreement, will result in any bonus, golden parachute, severance or other payment or obligation to any current or former employee or director of any of AEOG, or result in any acceleration of the time of payment, provision or vesting of any such benefits.

3.11          Business Locations. Other than as set forth in the AEOG Disclosure Schedule, AEOG does not own or lease any real or personal property in any state or country.

3.12          Intellectual Property. AEOG owns no intellectual property of any kind. AEOG is not currently in receipt of any notice of any violation or infringements of, and is not knowingly violating or infringing, or to the best of its knowledge has not violated or infringed the rights of others in any trademark, trade name, service mark, copyright, patent, trade secret, know-how or other intangible asset.

3.13          Governmental Approvals. Except as set forth in the AEOG Disclosure Schedule, no authorization, license, permit, franchise, approval, order or consent of, and no registration, declaration or filing by AEOG with, any governmental authority, domestic or foreign, federal, state or local, is required in connection with AEOG's execution, delivery and performance of this Agreement. Except as set forth in the AEOG Disclosure Schedule, no consents of any other parties are required to be received by or on the part of AEOG to enable AEOG to enter into and carry out this Agreement.

3.14          Transactions with Affiliates. Except as set forth in the AEOG Disclosure Schedule, AEOG is not indebted for money borrowed, either directly or indirectly, from any of its officers, directors, or any Affiliate (as defined below), in any amount whatsoever; nor are any of its officers, directors, or Affiliates indebted for money borrowed from AEOG; nor are there any transactions of a continuing nature between AEOG and any of its officers, directors, or Affiliates not subject to cancellation which will continue beyond the Closing Date, including, without limitation, use of the assets of AEOG for personal benefit with or without adequate compensation. For purposes of this Agreement, the term (i)"Affiliate" shall mean any person that, directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified. As used in the foregoing definition, the term (ii) "control" shall mean the power through the ownership of voting securities, contract or otherwise to direct the affairs of another person and (iii) "person" shall mean an individual, firm, trust, association, corporation, partnership, government (whether federal, state, local or other political subdivision, or any agency or bureau of any of them) or other entity.

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3.15          No Distributions. AEOG has not made nor has any intention of making any distribution or payment to any of its shareholders with respect to any of its shares prior to the Closing Date.

3.16          Liabilities. AEOG has no material direct or indirect indebtedness, liability, claim, loss, damage, deficiency, obligation or responsibility, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent or otherwise ("Liabilities"), whether or not of a kind required by generally accepted accounting principles to be set forth on a financial statement, other than (i) Liabilities fully and adequately reflected or reserved against on the AEOG Balance Sheet, (ii) Liabilities incurred since the Balance Sheet Date in the ordinary course of the business of AEOG, or (iii) Liabilities otherwise disclosed in this Agreement, including the exhibits hereto and AEOG Disclosure Schedule.

3.17          Accounts Receivable. AEOG has no accounts receivables other than as disclosed in the AEOG Disclosure Schedule.

3.18          Insurance. AEOG has no insurance policies in effect.

3.19          Principal AEOG Shareholder Representations and Warranties. THE PRINCIPAL AEOG SHAREHOLDER represents and warrants that he has the absolute and unrestricted right, power, authority, and capacity to execute and deliver this Agreement and the other Closing Documents to which he is a party and to perform his obligations under this Agreement and the other Closing Documents to which he is a party, and he has good and marketable title to all of the AEOG Shares listed in Exhibit A hereto, free and clear of all liens, claims and encumbrances of any third persons.

3.20          No Omissions or Untrue Statements. To the best of each party's knowledge no representation or warranty made by AEOG or the PRINCIPAL AEOG SHAREHOLDER to SELLERS and JILP in this Agreement, the AEOG Disclosure Schedule or in any certificate of an AEOG officer required to be delivered to SELLERS pursuant to the terms of this Agreement, contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading as of the date hereof and as of the Closing Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF JILP AND SELLERS

Except as set forth in the JILP Disclosure Schedule, SELLERS jointly and severally represent and warrant to AEOG as follows as of the date hereof and as of the Closing Date:

4.1              Organization and Standing of JILP. JILP is a corporation duly organized, validly existing and in good standing under the laws of the state of Texas, and has the corporate power to carry on its business as now conducted and to own its assets and is duly qualified to transact business as a foreign corporation in each state where such qualification is necessary except where the failure to qualify will not have a material adverse effect on the business or prospects of JILP. The copies of the Articles of Incorporation and Bylaws of JILP, as amended to date, and made available to AEOG, are true and complete copies of those documents as now in effect.

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4.2              Authority. The Board of Directors of JILP has approved this agreement.

4.3              No Conflict. The making and performance of this Agreement will not (i) conflict with the Articles of Incorporation or the Bylaws of JILP, (ii) violate any laws, ordinances, rules, or regulations, or any order, writ, injunction or decree to which JILP is a party or by which JILP or any of their material assets, business, or operations may be bound or affected or (iii) result in any breach or termination of, or constitute a default under, or constitute an event which, with notice or lapse of time, or both, would become a default under, or result in the creation of any encumbrance upon any material asset of JILP, or create any rights of termination, cancellation, or acceleration in any person under any material agreement, arrangement, or commitment.

4.4              Properties. Except as set forth in the JILP Disclosure Schedule, SELLERS have good and marketable title to all of the JILP shares of common stock, free and clear of all liens, claims and encumbrances of third persons whatsoever, and JILP has good and marketable title to all of the assets and properties which it purports to own as reflected on the balance sheet included in the JILP Financial Statements (as hereinafter defined), or thereafter acquired.

4.5              Governmental Approval; Consents. No authorization, license, permit, franchise, approval, order or consent of, and no registration, declaration or filing by SELLERS or JILP with any governmental authority, domestic or foreign, federal, state or local, is required in connection with SELLERS OR JILP's execution, delivery and performance of this Agreement. Except as set forth in the JILP Disclosure Schedule, no consents of any other parties are required to be received by or on the part of SELLERS or JILP to enable SELLERS and JILP to enter into and carry out this Agreement.

4.6              Adverse Developments. Since January 31, 2016, there have been no material adverse changes in the assets, liabilities, properties, operations or financial condition of JILP, and no event has occurred other than in the ordinary and usual course of business or as set forth in the JILP Financial Statements which could be reasonably expected to have a materially adverse effect upon JILP.

4.7              Taxes. JILP has duly filed all returns required to be filed. All such returns were, when filed, and to SELLER'S knowledge are, accurate and complete in all material respects and were prepared in conformity with applicable laws and regulations. JILP has paid in full all taxes through the Closing Date. JILP is not a party to any pending action or proceeding by any governmental authority for the assessment of any tax, and, to the knowledge of JILP, no claim for assessment or collection of any tax has been asserted against JILP that have not been paid. There are no tax liens upon the assets of JILP. There is no valid basis, to JILP's knowledge, for any assessment, deficiency, notice, 30-day letter or similar intention to assess any tax to be issued to JILP by any governmental authority.

4.8              Litigation. Except as set forth on the JILP Disclosure Schedule, there is no material claim, action, proceeding, or investigation pending or, to their knowledge, threatened against or affecting SELLERS or JILP before or by any court, arbitrator or governmental agency or authority. There are no material decrees, injunctions or orders of any court, governmental department, agency or arbitration outstanding against SELLERS or JILP.

4.9              Compliance with Laws and Regulations. JILP has complied and is presently complying, in all material respects, with all laws, rules, regulations, orders and requirements applicable

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to it in all jurisdictions in which its operations are currently conducted or to which it is currently subject.

4.11          Governmental Licenses, Permits and Authorizations. JILP has all governmental licenses, permits, authorizations and approvals necessary for the conduct of its business as currently conducted. All such licenses, permits, authorizations and approvals are in full force and effect, and no proceedings for the suspension or cancellation of any thereof is pending or threatened.

4.12          Liabilities. JILP has no material direct or indirect Liabilities, as that term is defined in Section 3.22 ("JILP Liabilities"), whether or not of a kind required by generally accepted accounting principles to be set forth on a financial statement, other than (i) JILP liabilities fully and adequately reflected or reserved against on the JILP Balance Sheet, (ii) JILP liabilities incurred in the ordinary course of the business of JILP, and (iii) JILP liabilities otherwise disclosed in this Agreement, including the Exhibits hereto.

4.13          Contracts and Other Commitments. Schedule 4.13 of the JILP Disclosure Schedule consists of a true and complete list of all material contracts, agreements, commitments and other instruments (whether oral or written) to which JILP is a party. JILP has made or will make available to AEOG a copy of each such contract. All such contracts are valid and binding upon JILP and are in full force and effect and are enforceable in accordance with their respective terms. No such contracts are in breach, and no event has occurred which, with the lapse of time or action by a third party, could result in a material default under the terms thereof. To JILP'S knowledge, no stockholder of JILP has received any payment from any contracting party in connection with or as an inducement for causing JILP to enter into any such contract.

4.14          Absence of Certain Changes or Events. Except as set forth in the JILP Disclosure Schedule, since January 31, 2016 (the "Balance Sheet Date"), there has not been:

(a)            any material adverse change in the financial condition, properties, assets, liabilities or business of JILP;

(b)            any material damage, destruction or loss of any material properties of JILP, whether or not covered by insurance;

(c)            any material adverse change in the manner in which the business of JILP and has been conducted;

(d)            any material ad verse change in the treatment and protection of trade secrets or other confidential information of JILP; and

(e)            any occurrence not included in paragraphs (a) through (d) of this Section 4.15 which has resulted, or which JILP has reason to believe, might be expected to result in a material adverse change in the business or prospects of JILP.

4.15          Financial Statements. JILP will supply the financial statements required by Item 9.01(a) within 71 calendar days after the date that the initial report on Form 8-K must be filed relating to this transaction.

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4.16          JILP Property. Schedule 4.16 of the JILP Disclosure Schedule sets forth a complete and correct list and summary description of all property owned by JILP.

4.17          Subsidiaries. Except as set forth in Schedule 4.18 of the JILP Disclosure Schedule, JILP owns no subsidiaries nor does it own or have an interest in any other corporation, partnership, joint venture or other entity.

4.18          Hazardous Materials. To the knowledge of JILP, JILP has not violated, or received any written notice from any governmental authority with respect to the violation of any law, rule, regulation or ordinance pertaining to the use, maintenance, storage, transportation or disposal of "Hazardous Materials." As used herein, the term "Hazardous Materials" means any substance now or hereafter designated which is found to be toxic or harmful to humans or the environment when present in certain amounts or quantities.

4.19          Employees. JILP has no employees that are represented by any labor union or collective bargaining unit.

4.20          Employee Benefit Plans. The JILP Disclosure Schedule identifies each salary, bonus, material deferred compensation, material incentive compensation, stock purchase, stock option, severance pay, termination pay, hospitalization, medical, insurance, supplemental unemployment benefits, profit-sharing, pension or retirement plan, program or material agreement.

4.21          Business Locations. Other than as set forth in the JILP Disclosure Schedule, JILP does not own or lease any real or personal property in any state or country (JILP rents offices in Amarillo, Texas).

4.22          Insurance. Except as set forth in Schedule 4.22 of the JILP Disclosure Schedule, JILP has no insurance policies in effect. (Insurance for directors).

4.23          No Omission or Untrue Statement. To the best of each party's knowledge, no representation or warranty made by SELLERS to AEOG in this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading as of the date hereof and as of the Closing Date.

ARTICLE V

CLOSING

5.1              Closing. The acquisition shall be completed on a date to be mutually agreed upon between the parties but not later than March 31, 2016 on which the last of the conditions contained in this Article V is fulfilled or waived (the "Closing Date"). At the Closing, AEOG and SELLERS shall make the deliveries contemplated by this Agreement, and in accordance with the terms of this Agreement.

5.2              AEOG's Closing Deliveries. At the Closing, in addition to documents referred elsewhere, AEOG shall cause to be delivered to SELLERS:

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(a)       

	
a certificate, dated as of the Closing Date, executed by the Treasurer or Chief Financial Officer of AEOG, to the effect that the representations and warranties contained in this Agreement are true and correct in all material respects at and as of the Closing Date and that AEOG has complied with or performed in all material respects all terms, covenants, and conditions to be complied with or performed AEOG on or prior to the Closing Date;

	
(b)      

	
$500,000.00 cash which may be paid up to 120 days from March 31, 2016.

	
(c)      

	
Audited financial statements required by Item 9.01(b) of Form 8-K which may be delivered up to 71 days from the date of this Agreement.

	
(d)      

	
Certified resolution of the Board of Directors and shareholders authorizing and approving the transactions set forth herein;

	
(e)      

	
The AEOG Disclosure Schedules;

	
(f)       

	
such other documents as SELLERS or their counsel may reasonably require.

5.3              JILP's Closing Deliveries. At the Closing, in addition to documents referred to elsewhere, SELLERS shall deliver to AEOG:

	
(a)      

	
a certificate of SELLERS dated as of the Closing Date that the representations and warranties of SELLERS contained in this Agreement are true and correct in all material respects and that SELLERS have complied with or performed in all material respects all terms, covenants, and conditions to be complied with or performed by SELLERS on or prior to the Closing Date;

	
(b)      

	
certificates representing JILP shares of common stock owned by SELLERS, duly endorsed for transfer or accompanied by a properly executed stock power;

	
(c)      

	
the JILP Disclosure Schedules;

	
(d)      

	
such other documents as AEOG or its counsel may reasonably require.

ARTICLE VI

CONDITIONS TO OBLIGATIONS OF AEOG

The obligation of AEOG to consummate the Closing is subject to the following conditions, any of which may be waived by it in its sole discretion.

6.1              Compliance by JILP and SELLERS. JILP and SELLERS shall have performed and complied in all material respects with all agreements and conditions required by this Agreement to be performed or comp lied with i n all material respects by SELLERS prior to or on the Closing Date;

6.2              Accuracy of JILP and SELLERS' Representations. JILP and SELLERS'

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representations and warranties contained in this Agreement (including the Disclosure Schedule) or any schedule, certificate, or other instrument delivered pursuant to the provisions hereof or in connection with the transactions contemplated hereby shall be true and correct in all material respects at and as of the Closing Date (except for such changes permitted by this Agreement) and shall be deemed to be made again as of the Closing Date.

6.3              Documents. All documents and instruments required hereunder to be delivered by JILP and SELLERS to AEOG at the Closing shall be delivered in form and substance reasonably satisfactory to AEOG and its counsel.

6.4              Litigation. No litigation seeking to enjoin the transactions contemplated by this Agreement or to obtain damages on account hereof shall be pending or, to AEOG's knowledge, be threatened.

6.5              Material Adverse Change. Except for operations in the ordinary course of business, no material adverse change shall have occurred subsequent to January 31, 2016, in the financial position, results of operations, assets, or liabilities of JILP, nor shall any event or circumstance have occurred which would result in a material adverse change in the financial position, results of operations, assets, or liabilities of JILP.

6.6              Approval by Board of Directors. The Board of Directors of AEOG shall have approved this Agreement and the transactions contemplated hereby.

6.7              Satisfaction with Due Diligence. AEOG shall have been satisfied with its due diligence review of JILP, its subsidiaries and their operations.

6.8              Regulatory Compliance. AEOG shall have received any and all regulatory approvals and consents required to complete the transactions contemplated hereby.

ARTICLE VII

CONDITIONS TO SELLERS' OBLIGATIONS

The obligation of SELLERS to consummate the Closing is subject to the following conditions, any of which may be waived by SELLERS in their discretion.

7.1              Compliance by AEOG. AEOG shall have performed and complied in all material respects with all agreements and conditions required by this Agreement to be performed or complied with by them prior to or on the Closing Date.

7.2              Accuracy of Representations of AEOG. The representations and warranties of AEOG contained in this Agreement (including the exhibits hereto and the AEOG Disclosure Schedule) or any schedule, certificate, or other instrument delivered pursuant to the provisions hereof or in connection with the transactions contemplated hereby shall be true and correct in all material respects at and as of the Closing Date (except for changes permitted by this Agreement) and shall be deemed to be made again as of the Closing Date.

7.3              Litigation. No litigation seeking to enjoin the transactions contemplated by this

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Agreement or to obtain damages on account hereof shall be pending or to SELLERS' knowledge, be threatened.

7.4              Documents. All documents and instruments required hereunder to be delivered by AEOG at the Closing shall be delivered in form and substance reasonably satisfactory to SELLERS and their counsel.

7.5              Balance Sheet. Except as set forth in Section 7.5 of the AEOG Disclosure Schedule, AEOG shall have no the liabilities as incurred in the ordinary course of business, as reflected on AEOG's most recent balance sheet, or as otherwise approved by SELLERS.

7.6              Approval by Board of Directors. The board of directors of JILP and each JILP selling shareholder shall have executed this agreement.

7.7              Satisfaction with Due Diligence. SELLERS shall have been satisfied with their due diligence review of AEOG and satisfied themselves that AEOG continues to trade its shares on the Bulletin Board.

7.8              Regulatory Compliance. JILP shall have received any and all regulatory approvals and consents required to complete the transactions contemplated hereby.

ARTICLE VIII

TERMINATION

8.1              Termination Prior to Closing.

		(a)	If all of the terms and conditions of this Agreement have not been satisfied by July 29, 2016, any party may terminate this Agreement at any time thereafter by giving written notice of termination to the other, provided, however, that no party may terminate this Agreement if such party has breached any material terms or conditions of this Agreement and such breach has prevented the timely closing of the Exchange. Notwithstanding the above, such deadline may be extended one or more times, only by mutual written consent of SELLERS, JILP and AEOG. Further in the event of termination of this Agreement each party will return all consideration it received from the other.

		(b)	Prior to Closing, any party may terminate this Agreement following the insolvency or bankruptcy of the other party hereto, or if any one or more of the conditions to Closing set forth in Article VI or Article VII shall become incapable of fulfillment or there shall have occurred a material breach of this Agreement and either such condition of breach shall not have been waived by the party for whose benefit the condition was established, then AEOG (in the case of a condition in Article VI) or SELLERS (in the case of a condition specified in Article VII) may terminate this Agreement. In addition, either AEOG or SELLERS may terminate this Agreement upon written notice to the other if it shall reasonably determine that the Exchange has become inadvisable by reason of the institution or threat by any federal, state or municipal governmental authorities of a formal investigation or of any action, suit or proceeding of any kind against either or both parties.

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8.2            Consequences of Termination. Upon termination of this Agreement pursuant to this Article VIII or any other express right of termination provided elsewhere in this Agreement, the parties shall be relieved of any further obligation under this Agreement except for the obligations in Section 11.4; provided, however, that no termination of this Agreement, pursuant to this Article VIII hereof or under any other express right of termination provided elsewhere in this Agreement shall operate to release any party from any liability to any other patty incurred otherwise than under this Agreement before the date of such termination, or from any liability resulting from any willful misrepresentation of a material fact made in connection with this Agreement or willful breach of any material provision hereof.

ARTICLE IX

ADDITIONAL COVENANTS

9.1             Mutual Cooperation. The parties hereto will cooperate with each other, and will use all reasonable efforts to cause the fulfillment of the conditions to the parties' obligations hereunder and to obtain as promptly as possible all consents, authorizations, orders or approvals from each and every third party, whether private or governmental, required in connection with the transactions contemplated by this Agreement.

9.2             Changes in Representations and Warranties of a Party. Between the date of this Agreement and the Closing Date, no party shall directly or indirectly, enter into any transaction, take any action, or by inaction permit an otherwise preventable event to occur, which would result in any of the representations and warranties of such party herein contained not being true and correct at and as of the Closing Date. Each party shall promptly give written notice to the other parties upon becoming aware of (a) any fact which, if known on the date hereof, would have been required to be set forth or disclosed pursuant to this Agreement, and (b) any impending or threatened breach in any material respect of any of the party's representations and warranties contained in this Agreement and with respect to the latter shall use all reasonable efforts to remedy same.

9.3             SEC Filings. The parties agree that the following filings shall be made with the Securities and Exchange Commission ("Commission"): (a) a report on Form 8-K will be filed with the Commission disclosing the consummation of the Exchange which shall include, but not be limited to, completion of Items 2.01 thereof; and, (b) any and all other filings necessary to comply with the Exchange Act.

9.4              Conduct of Business. During the period from the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement in accordance with its terms, JILP shall continue to conduct its businesses and maintain its business relationships in the ordinary and usual course consistent with past practice and will not, without limitation, without the prior written consent of AEOG:

(a)            Sell, lease, assign transfer or otherwise dispose of any of its material assets, including cash;

(b)            Agree to, or assume guarantee, endorse or otherwise in any way be or become responsible or liable for, directly or indirectly, any material contingent obligation;

14

(c)            Make any material capital expenditures;

(d)            Enter into any transaction concerning a merger or consolidation other than with the other party hereto or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, or assets, or stock or securities convertible into stock of any subsidiary, or make any material change in the present method of conducting business;

(e)            Declare or pay any dividends or make any other distribution (whether in cash or property) on any shares of its capital stock or purchase, redeem, retire or otherwise acquire for value any shares of its capital stock or warrants or options whether now or hereafter outstanding;

(f)            Make any advances or loans to, or investments in any person, firm, corporation or other business entity not a part y to this Agreement;

(g)            Enter into any new material agreement or be or become liable under any new material agreement, for the lease, hire or use of any real or personal property; or

(h)            Create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property or assets, income or profits, whether now owned or hereafter acquired.

ARTICLE X

MISCELLANEOUS

10.1            Expenses. Each party shall each pay its own expenses incident to the negotiation, preparation, and carrying out of this Agreement, including legal and accounting and audit fees.

10.2            Survival of Representations, Warranties and Covenants. All statements contained in this Agreement or in an y certificate delivered by or on behalf of AEOG or SELLERS pursuant hereto, or in connection with the actions contemplated here by shall be deemed representations, warranties and covenants by SELLERS and AEOG as the case may be, hereunder. All representations, warranties, and covenants made by AEOG or SELLERS in this Agreement, or pursuant hereto, shall survive the Closing in a period of two (2) years.

10.3            Publicity. SELLERS and AEOG shall not issue any press release or make any other public statement, in each case, relating to, in connection with or arising out of this Agreement or the transactions contemplated hereby, without obtaining the prior approval of the other, which shall not be unreasonably withheld or delayed, except that prior approval shall not be required if, in the reasonable judgment of AEOG prior approval by SELLERS would prevent the timely dissemination of such release or statement in violation of applicable federal securities laws, rules or regulations or policies of the Bulletin Board.

10.4            Non-Disclosure. A disclosing party will not at any time after the date of this Agreement, without the recipient's consent, except in the ordinary operation of its business or as required by law, divulge, furnish to or make accessible to anyone any knowledge or information with

15

respect to confidential or secret processes, inventions, discoveries, improvements, formulae, plans, material, devices or ideas or know-how, whether patentable or not, with respect to any confidential or secret aspects of such party (including, without limitation, customer lists, supplier lists and pricing arrangements with customers or suppliers) ("Confidential Information"). The parties will not at any time after the date of this Agreement and prior to the Exchange use, divulge, furnish to or make accessible to anyone any Confidential Information (other than to its representatives as part of its due diligence or corporate investigation). Any information, which (i) at or prior to the time of disclosure by the disclosing party was generally available to the public through no breach of this covenant, (i i) was available to the public on a non-confidential basis prior to its disclosure by the disclosing party, or (iii) was made available to the public from a third patty provided that such third party did not obtain or disseminate such information in breach of any legal obligation of the disclosing party, shall not be deemed Confidential Information for purposes hereof, and the undertakings i n this covenant with respect to Confidential Information shall not apply thereto. The undertakings of the parties set forth above in this Section 11.4 shall terminate upon consummation of the Closing. If this Agreement is terminated pursuant to the provisions of Article VIII or any other express right of termination set forth in this Agreement, the recipient shall return to the disclosing party all copies of all Confidential Information previously furnished to it by the disclosing party.

10.5            Succession and Assignments and Third Party Beneficiaries. This Agreement may not be assigned (either voluntarily or involuntarily) by any party hereto without the express written consent of the other parties. Any attempted assignment in violation of this Section shall be void and ineffective for al l purposes. In the event of an assignment permitted by this Section, this Agreement shall be binding upon the heirs, successors and assigns of the parties hereto. There shall be no third party beneficiaries of this Agreement except as expressly set forth herein to the contrary.

10.6            Notices. All notices, requests, demands, or other communications with respect to this Agreement shall be in writing and shall be (i) sent by facsimile transmission, (ii) sent by the United States Postal Service, registered or certified mail, return receipt requested, or (iii) personally delivered by a nationally recognized express overnight courier service, charges prepaid, to the following addresses (or such other addresses as the parties may specify from time to time in accordance with this Section)

If, to SELLERS:                       Jed Miesner

JILPETCO, INC.

701 S. Taylor Street

Suite 470,LB 113

Amarillo, Texas 79101

Tel: (806) 351-2077

Fax: (806) 351-2088

Email: jedmiesner@gmail.com

Counsel for AEOG:            Conrad C. Lysiak

The Law Office of Conrad C. Lysiak, P.S.

West 601 First Avenue

Suite 903

Spokane, WA 99201

Tel.: (509) 624-1475

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Fax: (509) 747-1770

Email: cclysiak@lysiaklaw.com

If, to AEOG:                                 Stephen Salgado

Amazing Energy Oil and Gas, Co.

701 S. Taylor Street

Suite 470, LB 113

Amarillo, Texas 79101

Tel: (806) 322-1922

Fax: (806) 351-2088

Email: Stephen@amazingenergy.com

Any such notice shall, when sent in accordance with the preceding sentence, be deemed to have been given and received on the earliest of (i) the day delivered to such address or sent by facsimile transmission, (ii) the tenth business day following the date deposited with the United States Postal Service, as the case may be, or (iii) 72 hours after shipment by such courier service.

10.7            Construction. This Agreement shall be construed and enforced in accordance with the internal laws of the State of Texas without giving effect to the principles of conflicts of law thereof. All parties hereby irrevocably submit to the exclusive jurisdiction of any state or federal court sitting in the state of Texas for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waive, and agree not to assert in any suit, action or proceeding, any claim that he is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper.

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

10.9            No Implied Waiver; Remedies. No failure or delay on the par1of the parties hereto to exercise any right, power, or privilege hereunder or under any instrument executed pursuant hereto shall operate as a waiver nor shall any single or partial exercise of any right, power, or privilege preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. All rights, powers, and privileges granted herein shall be in addition to other rights and remedies to which the parties may be entitled at law or in equity.

10.10        Entire Agreement. This Agreement, including the Exhibits and Disclosure Schedules attached hereto, sets forth the entire understandings of the parties with respect to the subject matter hereof, and it incorporates and merges any and all previous communications, understandings, oral or written as to the subject matter hereof, and cannot be amended or changed except in writing, signed by the parties.

10.11        Headings. The headings of the Sections of this Agreement, where employed, are for the convenience of reference only and do not form a part hereof and in nq way modify, interpret or construe the meanings of the parties.

10.12       Severability. To the extent that any provision of this Agreement shall be invalid or

17

unenforceable, it shall be considered deleted hereof and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect.

10.13        Attorneys Fees. In the event an y legal action is brought to interpret or enforce this Agreement, the party prevailing in such action shall be entitled to recover its attorneys' fees and costs in addition to any other relief that it is entitled.

10.14       Consultants. Each party represents to the others that there i s no broker or finder entitled to a fee or other compensation for bringing the pa1t·ies together to effect the Exchange.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

	
AEOG:

	 	
Amazing Energy Oil and Gas Co.,

	 	 	
a Nevada Corporation

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
By.

	
MATT COLBERT

	 	 	 	
Matt Colbert, CFO

	 	 	 	 
	 	 	 	 
	 	 	 	 
	
JILP:

	 	
Jilpetco, Inc.,

	 	 	
a Texas Corporation

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
By.

	
JED MIESNER

	 	 	 	
Arnold "Jed" Miesner, President

	 	 	 	 
	 	 	 	 
	
SELLERS:

	
LIST ALL OF THE

	 	
SIGNATURES OF SHAREHOLDERS OF

	 	
SHAREHOLDERS OF JILP

	 	
JLLP

	 	 	 	 
	 	
Arnold "Jed" Miesner

	 	
JED MIESNER

18

EXHIBIT A

STOCKHOLDER(S) OF SELLERS:

Arnold "Jed" Miesner                                                      Shares Owned of Seller:                                                      1 00%

19

AEOG Disclosure Schedule

20

JILP and SELLERS' Disclosure Schedule

21Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

AGREEMENT, made
as of this 18th day of April, 2016 (the “Effective Date”), by and between Genius Brands International, Inc., a company
formed under the laws of the State of Nevada, with its principal place of business at 301 N. Canon Drive, Suite 305, Beverly Hills,
CA 90210 ("Company"), and Rebecca Hershinger, residing at P.O. Box 681478, Park City, UT, 84068 ("Executive").

 

W I T N E
S S E T H:

 

WHEREAS, the Company
desires to employ Executive and Executive desires to be employed by the Company;

 

NOW, THEREFORE,
in consideration of the mutual covenants herein contained, the parties hereto 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,
effective as of the Effective Date.

 

2. Term. Subject
to earlier termination as hereafter provided, the Executive shall be employed hereunder for a term commencing on the Effective
Date and twelve (12) months thereafter, there shall be an option for one (1) additional 12-month term subject to the written agreement
of the parties to be discussed no later than thirty (30) days before the end of the initial term; it being agreed, however, that
neither party is obligated to agree to an extension. The term of the Executive's employment under this Agreement, including any
mutually agreed upon extension, is hereafter referred to as "the term of this Agreement" or "the term hereof."
The date of termination of the Executive's employment hereunder is hereinafter referred to as the "Date of Termination."

 

3. Duties and Rights.
Executive shall be employed as Chief Financial Officer of the Company. In such capacity, Executive's duties shall include
those customary for such a position with a public company including but not limited to oversight of corporate finance, accounting
and financial reporting functions, assisting the Company with its fundraising and corporate development initiatives, supervising
the Company’s finance and accounting staff. Executive shall report to the Chief Executive Officer, Andy Heyward. During
the term of this Agreement, Executive shall devote all of her business time and efforts to the affairs of the Company and its
Subsidiaries. Executive shall use her best efforts to perform all such services diligently and to the best of her ability and
will at all times use her best efforts to enhance the business of the Company.

 

    	 	1	 

     

    

 

4. Compensation and
Benefits. As compensation for all services performed by the Executive under this Agreement and subject to performance of the
Executive's duties and obligations to the Company and its Affiliates, pursuant to this Agreement:

 

  4.1. Base Salary. During the term hereof, the Company shall pay the Executive a base salary at the rate of $175,000 per year. Such base salary, as described in the previous sentence, is hereafter referred to as the "Base Salary." Executive’s Base Salary shall be increased to an annualized rate of $190,000 not later than October 1, 2016.

 

  4.2. Bonus Compensation. During the term hereof, the Executive shall be eligible to receive a bonus (the "Discretionary Bonus") for each fiscal year, prorated for any period of service less than one year, as provided herein. The amount and timing of the Discretionary Bonus, if any, shall be determined by the Company, in its sole discretion, based on the Executive's performance (including but not limited to Executive’s performance against revenue and profit targets) and that of the Company and its Affiliates and such other criteria as the Compensation Committee may consider in its sole discretion. The Discretionary Bonus shall be paid by the Company to the Executive quarterly promptly after determination that the relevant targets have been met, it being understood that the attainment of any financial targets associated with any bonus shall not be determined until following the completion of the Company’s quarterly audit and public announcement of such results and shall be paid promptly following the Company’s announcement of earnings. Whenever any Discretionary Bonus payable to the Executive is stated in this Agreement to be prorated for any period of service less than a full year, such Discretionary Bonus shall be prorated by multiplying (x) the amount of the Discretionary Bonus otherwise payable for the applicable fiscal year in accordance with this Section 4.2 by (y) a fraction, the denominator of which shall be 365 and the numerator of which shall be the number of days during the applicable fiscal year for which the Executive was employed by the Company. Any compensation paid to the Executive as Discretionary Bonus shall be in addition to the Base Salary, as well as participation in any other incentive, stock option, stock purchase, profit sharing, deferred compensation, bonus compensation or severance plan, program or arrangement which the Company or any of its Affiliates may adopt or continue from time to time for which the Executive is eligible, each as in accordance with any subscription agreement, stock option plan, and stock option agreement identified, from time to time.

 

  4.3. Expenses. It is recognized that Executive in the performance of her duties hereunder may be required to expend reasonable sums for travel and for entertainment of various persons, including representatives of companies with whom the Company has or might expect to have business relations. During the term hereof, the Company shall either advance funds to Executive or reimburse Executive for reasonable business expenses incurred by her in connection with the performance of her duties hereunder, provided Executive properly accounts therefor in accordance with the Company's policies and procedures.

 

    	 	2	 

     

    

 

  4.4 Benefits. Executive shall be entitled to receive from the Company during the term hereof those benefits and perquisites made available to senior executives from time to time, including but not limited to fifteen (15) paid time off days per year. The foregoing is understood to include participation in such stock option, bonus and similar incentive plans made available to senior executives at the Company in accordance with the terms and eligibility requirements thereof as in effect from time to time. With respect to the foregoing, it is agreed that Executive’s benefits will be on a “most favored nations” basis with those granted to the company’s Executive Vice President Gregory Payne. Without limiting the generality of the foregoing but for the sake of clarity, it is understood that, subject to the terms of the Company’s Amended 2015 Incentive Plan (“Plan”), Executive will be granted the same number of stock options as Mr. Payne. Executive has been advised however, that as of the Effective Date of this Agreement, there are not sufficient options available under the Plan for the Company to make the aforesaid grant. It is agreed however that Company intends, and will use its best efforts to do so, to seek the approval of the Company’s shareholders for an amendment to the Plan, or the establishment of a different stock option plan, in order to permit the foregoing grant to Executive.

 

  4.5 Relocation. It is a material term of this agreement that Executive relocate from the Park City, Utah to the Los Angeles, California area and that Executive’s services will be rendered from Company’s executive offices, currently in Beverly Hills, California. Company and Executive will mutually agree upon a schedule for relocation which shall in all events be accomplished no later than June 15, 2016. Company will pay for directly or reimburse Executive for the reasonable out of pockets costs of such relocation subject to mutual approval. Company will also reimburse Executive for one three-day/two night trip to Los Angeles prior to such relocation for the purpose of house-housing and similar pre-relocation matters as well as reasonable living expenses incurred once relocated to Los Angeles and prior to moving into permanent accommodations, if necessary, up to a maximum of fifteen (15) calendar days.

 

4.6 Clawback Rights.
All amounts paid to Executive by the Company (other than Executive’s Base Salary pursuant to Section 4.1, paid time off days
per year pursuant to Section 4.4, and reimbursement of expenses pursuant to Sections 4.3 and 4.5 hereof) during the term of this
Agreement and any time thereafter and any and all stock based compensation (such as options and equity awards,) granted during
the term hereof and any time thereafter (collectively, the “Clawback Benefits”) shall be subject to “Clawback
Rights” as follows: during the period that the Executive is employed by the Company and upon the termination or expiration
of the Executive’s employment and for a period of three (3) years thereafter, if any of the following events occurs, Executive
agrees to repay or surrender to the Company the Clawback Benefits as set forth below:

 

    	 	3	 

     

    

 

(a) if the Company restates (a “Restatement”) any published financial statement that has been filed with the Securities and Exchange Commission covering any period commencing after the Effective Date of this Agreement from which any Clawback Benefits to Executive shall have been determined (such restatement resulting from material non-compliance of the Company with any financial reporting requirement under the federal securities laws and shall not include a restatement of financial results resulting from subsequent changes in accounting pronouncements or requirements which were not in effect on the date the financial statements were originally prepared), then the Executive agrees to immediately repay or surrender upon demand by the Company any Clawback Benefits which were determined by reference to any Company international sales department financial results reflected in financial statements which were later restated, to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that would have been paid, based on the Restatement of the Company’s financial statements. All Clawback Benefits amounts resulting from such Restatements shall be retroactively adjusted by the Compensation Committee to take into account the relevant restated financial information and if any excess portion of the Clawback Benefits resulting from such restated information is not so repaid or surrendered by the Executive within ninety (90) days of the revised calculation being provided to the Executive by the Company following a publicly announced Restatement, the Company shall have the right to take any and all action to effectuate such adjustment.

 

(b) if any material breach of any agreement by Executive relating to confidentiality, non-competition, non-raid of employees, or non-solicitation of vendors or customers (including, without limitation, Sections 7 or 8 hereof) or if any material breach of Company policy or procedures which causes material harm to the Company occurs, as determined by a final judgment from a court of competent jurisdiction, then the Executive agrees to repay or surrender any Clawback Benefits upon demand by the Company and if not so repaid or surrendered within ninety (90) days of such demand, the Company shall have the right to take any and all action to effectuate such adjustment.

 

  The amount of Clawback Benefits to be repaid or surrendered to the Company shall be determined by the Compensation Committee and applicable law, rules and regulations. All determinations by the Compensation Committee with respect to the Clawback Rights shall be final and binding on the Company and Executive. The parties acknowledge it is their intention that the foregoing Clawback Rights as relates to Restatements conform in all respects to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act”) and requires recovery of all “incentive-based” compensation, pursuant to the provisions of the Dodd Frank Act and any and all rules and regulations promulgated thereunder from time to time in effect. Accordingly, the terms and provisions of this Agreement shall be deemed automatically amended from time to time to assure compliance with the Dodd Frank Act and such rules and regulation as hereafter may be adopted and in effect.

 

    	 	4	 

     

    

 

5. Termination of Employment
and Severance Benefits. Notwithstanding the provisions of Section 2 hereof, the Executive's employment hereunder shall terminate
prior to the expiration of the term of this Agreement under the following circumstances:

 

  5.1. Retirement or Death. In the event of the Executive's retirement or death during the term hereof, the Executive's employment hereunder shall immediately and automatically terminate. In the event of the Executive's retirement after the age of sixty-five or death during the term hereof, the Company shall pay to the Executive (or in the case of death, the Executive's designated beneficiary or, if no beneficiary has been designated by the Executive, to her estate) (i) any Base Salary and accrued vacation earned but unpaid through the date of such retirement or death or (ii) any Discretionary Bonus for the fiscal year preceding that in which such retirement or death occurs that was granted but has not yet been paid, (iii) reimbursement for any reasonable expenses of the types specified in Sections 4.3 and 4.5 incurred with respect to periods prior to date of such retirement or death.

 

5.2. Disability.

 

  5.2.1. The Company may terminate the Executive's employment hereunder, upon notice to the Executive, in the event that the Executive becomes disabled during her employment hereunder through any illness, injury, accident or condition of either a physical or psychological nature and, as a result, in the opinion of the President based upon the advice of a physician chosen by the Company, Executive is unable to perform substantially all of her duties and responsibilities hereunder for thirty (30) consecutive days or an aggregate of sixty (60) days during any period of one hundred and eighty two (182) consecutive calendar days.

 

  5.2.2. The Company may designate another employee to act in the Executive's place during any period of the Executive's disability. Notwithstanding any such designation, while she is employed by the Company and has not yet become eligible for disability income benefits under any disability income plan maintained by the Company, the Executive shall continue to receive the Base Salary in accordance with Section 4.1 and to receive benefits in accordance with Section 4.4, to the extent permitted by the then-current terms of the applicable benefit plans. Upon becoming so eligible, and until the termination of her employment because of disability, the Company shall pay to the Executive, at its regular pay periods, an amount equal to the excess, if any, of the Executive's monthly base compensation in effect at the time of eligibility (i.e. 1/12th of the Base Salary) over the amounts of disability income benefits that the Executive is otherwise eligible to receive. Upon termination of the Executive's employment because of disability, the Company shall pay to the Executive (i) any Base Salary earned but unpaid through the Date of Termination, (ii) any Discretionary Bonus for the fiscal year preceding the year of termination that was earned but unpaid, (iii) reimbursement of any reasonable expenses incurred by her in the performance of her duties hereunder in accordance with the customary policies of the Company. During the 2 month period (or the remaining months of the Term if less than 6 months) following the termination of the Executive's employment because of disability, the Company shall pay the Executive, at its regular pay periods, an amount equal to the excess, if any, of the Executive's monthly base compensation in effect at the time of termination (i.e. 1/12th of the Base Salary) over the amounts of disability income benefits that the Executive is otherwise eligible to receive pursuant to the above-referenced disability income plan in respect of such period ("Disability Payments"), provided that the Executive signs an Employee Release as defined in Section 6.1 below.

 

    	 	5	 

     

    

 

  5.2.3. Except as provided in Section 5.2.2, while the Executive is receiving Disability Payments, the Executive shall not be entitled to receive any Base Salary under Section 4.1 or Discretionary Bonus payments under Section 4.2, but the Executive shall continue to participate in benefit plans of the Company in accordance with Section 4.4 and the terms of such plans, until the termination of her employment. During the two month period from the date of eligibility for Disability Payments or termination of employment under this Section 5.2, the Company shall continue to contribute to the cost of the Executive's participation in one of the group medical plans of the Company, in the same percentage as the Company was contributing at the time of termination of the Executive's employment, provided that the Executive is entitled to continue such participation under applicable law and plan terms.

 

  5.2.4. If any question shall arise as to whether during any period the Executive is disabled through any illness, injury, accident or condition of either a physical or psychological nature so as to be unable to perform substantially all of her duties and responsibilities hereunder, 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 her duly appointed guardian, if any, has no reasonable objection to determine whether the Executive is so disabled 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.

 

  5.3. By the Company for Cause. The Company may terminate the Executive’s employment hereunder for Cause at any time upon notice to the Executive setting forth in reasonable detail the nature of such Cause. The following events or conditions shall constitute "Cause" for termination: (i) the willful and continued failure of the Executive to perform substantially her duties and responsibilities for the Company (other than any such failure resulting from Executive’s death or Disability) after a written demand by the President for substantial performance is delivered to the Executive by the Company, which specifically identifies the manner in which the President believes that the Executive has not substantially performed her duties and responsibilities, which willful and continued failure is not cured by the Executive within thirty (30) days of her receipt of such written demand; (ii) the material breach by the Executive of any material provision of this Agreement, if such breach results in a material adverse effect on the Company or its Subsidiaries and if the breach is not cured by the Executive within thirty (30) days of her receipt of such written demand therefore (for the avoidance of doubt, the violation of Section 8.1, 8.3 and 8.5 of this Agreement shall be considered an immediate material breach of a material provision of this Agreement and not subject to the foregoing notice or cure provisions); (iii) the commission of fraud, embezzlement or theft by the Executive; (iv) the conviction of the Executive of, or plea by the Executive of nolo contendre to, any felony or any other crime involving dishonesty or moral turpitude.

 

    	 	6	 

     

    

 

  Upon the giving of notice of termination of the Executive's employment hereunder for Cause, the Company shall have no further obligation or liability to the Executive hereunder, other than for payment of any Base Salary earned but unpaid through the Date of Termination. Without limiting the generality of the foregoing, the Executive shall not be entitled to receive any Discretionary Bonus amounts which have not been paid prior to the Date of Termination hereunder for Cause or following a Material Adverse Event.

 

5.4. Post-Agreement Employment.
In the event the Executive remains in the employ of the Company or any of its Affiliates following termination of this Agreement,
by the expiration of the term hereof or otherwise, then such employment shall be at will.

 

6. Effect of Termination. The
provisions of this Section 6 shall apply in the event of termination, whether such termination is due to the expiration of the
term hereof, is pursuant to Section 5, or otherwise.

 

  6.1. Payment in Full. Payment by the Company of any Base Salary, Discretionary Bonus or other specified amounts which are due the Executive under the applicable termination provision of Section 5 shall constitute the entire obligation hereunder of the Company and its Affiliates to the Executive. Any obligation of the Company to provide the Executive Disability Payments, or Discretionary Bonus payments under this Agreement is expressly conditioned, however, upon the Executive signing a release of claims provided by the Company (the "Employee Release") within twenty-one days of the date on which she gives or receives, as applicable, notice of termination of employment and upon the Executive not revoking the Employee Release thereafter. The obligations of the Company to the Executive under Sections 5.2 or 5.4 hereof are also expressly conditioned upon the Executive's continued full performance of her obligations under Sections 7 and 8 hereof. The Executive agrees that if she violates any term of Sections 7 and/or 8 at any time, she shall have no entitlement to Disability Payments under Sections 5.2, and that she will promptly reimburse the Company on demand for all monies previously paid to her or on her behalf prior to the date of such violation under Sections 5.2 or 5.4 of this Agreement. The Executive recognizes that, except as expressly provided in Section 5, no compensation is earned after termination of employment.

 

    	 	7	 

     

    

 

  6.2. Termination of Benefits. Except for medical insurance coverage continued pursuant to Sections 5.2 hereof, the continuation of any benefits pursuant to Section 5.4 hereof and any right of continuation of health coverage at the Executive's cost to the extent provided by Sections 601 through 608 of ERISA, benefits shall terminate pursuant to the terms of the applicable benefit plans based on the date of termination of the Executive's employment without regard to any continuation of Base Salary or other payments to the Executive following termination of her employment.

 

  6.3. Survival of Certain Provisions. Provisions of this Agreement shall survive any termination if so provided herein or if necessary or desirable to accomplish the purpose of other surviving provisions, including without limitation the obligations of the Executive under Sections 7 and 8 hereof.

 

7. Confidential Information;
Intellectual Property.

 

  7.1. Confidentiality. The Executive acknowledges that the Company and its Affiliates continually develop Confidential Information, that the Executive may develop Confidential Information for the Company or its Affiliates and that the Executive may learn of Confidential Information during the course of employment. The Executive acknowledges the importance to the Company and its Affiliates of protecting their Confidential Information and other legitimate interests, and agrees that all Confidential Information which she creates or to which she has access as a result of employment with or service as a director of the Company and its Affiliates is and shall remain the sole and exclusive property of the Company and its Affiliates. The Executive will comply with the policies and procedures of the Company and its Affiliates for protecting Confidential Information and shall never use or disclose to any Person (except as required by applicable law or for the proper performance of her duties and responsibilities to the Company and its Affiliates) any Confidential Information obtained by the Executive incident to her employment with or service as a director of the Company or any of its Affiliates. The Executive understands that this restriction shall continue to apply after her employment terminates, regardless of the reason for such termination.

 

  7.2. Return of Documents. All documents, records, files, audio tapes, videotapes and any other media, however stored, of whatever kind and description relating to the business, present or otherwise, of the Company or its Affiliates and any copies, in whole or in part, thereof (the "Documents"), whether or not prepared by the Executive, shall be the sole and exclusive property of the Company and its Affiliates. The Executive shall not copy any Documents or remove any Documents from the premises of the Company or its Affiliates, except as required for the proper performance of regular duties for the Company or as expressly authorized in writing by the Board or its designee. The Executive agrees to return to the Company and its Affiliates at the time her employment terminates, and at such other times as may be specified by the Company or its Affiliates, all Documents and other property of the Company and its Affiliates then in her possession or control. The Executive agrees that, if a Document is on electronic media (e.g. a hard disk), upon the request of any duly authorized officer of the Company or its Affiliates, she will disclose all passwords necessary or desirable to enable the Company to obtain access to the Documents.

 

    	 	8	 

     

    

 

  7.3. Materials. Executive agrees that all ideas, plans and materials prepared by Executive in the course of her employment by the Company (collectively, the "Materials") during the term of this Agreement will be considered works-made-for-hire and shall be the Company's sole and exclusive property. In the event that the Materials are not copyrightable subject matter or for any reason are deemed not to be works-made-for-hire, then, and in such event, by this Agreement, Executive hereby assigns all right, title and interest to said Materials to the Company and agrees to execute all documents required to evidence such assignment. Without limiting the foregoing, it is specifically understood and agreed that Executive will retain no ownership rights whatsoever in or to the Materials. Notwithstanding the foregoing, the Executive understands that the provisions of this Section 7 requiring the assignment of Materials to the Company do not apply to any invention or Materials which qualifies fully under the provisions of California Labor Code Section 2870. Executive will advise the Company promptly in writing of any inventions or Materials that she believes meet the criteria in Labor Code Section 2870.

 

8. Restricted Activities.

 

  8.1. Agreement not to Compete with the Company during the Term of this Agreement. The Executive agrees that, during her employment, she will not, directly or indirectly, own, manage, operate, control, or participate in any manner in the ownership, management, operation or control of, or be connected as an officer, employee, partner, director, principal, consultant, agent or otherwise with, or have any financial interest in (except for a publicly traded company where she owns no more than 5% of the outstanding stock of such company), or aid or assist anyone else in the conduct of, any business, venture or activity which competes with the Business of the Company or its Subsidiaries (as defined below). Except as otherwise expressly set forth in this Agreement, the Executive further agrees that, during her employment with the Company, she will not enter into any transaction, on her own behalf or that of a third party with any of the Company's Affiliates, without full disclosure to, and receipt of prior written consent from, the President.

 

  8.2. Agreement not to Unfairly Compete with the Company after the Term of this Agreement. The Executive acknowledges that access to Confidential Information and to the Company's and its Affiliates' customers would give the Executive an unfair competitive advantage, were the Executive to leave employment and use any of the Company’s Confidential Information to unfairly compete with the Company or its Affiliates, and that she is therefore being granted access to Confidential Information and the customers of the Company and its Affiliates in reliance on her agreement hereunder. The Executive therefore agrees that for a period of twelve (12) months following the date her employment with the Company is terminated (the "Non-Competition Period"), she will not utilize any of the Company’s Confidential Information to unfairly compete in any fashion with the Company or its Subsidiaries with respect to the Business of the Company or its Subsidiaries. For purposes of this Section 8, the "Business of the Company or its Subsidiaries" shall mean (a) production and/or distribution of animated or live-action television programming (and/or any musical composition intended to be included therein), or any element thereof, within or without the United States as currently being conducted or planned to be conducted by the Company, and (b) any business activity that is conducted or is actively being planned to be conducted by the Company or by any of its Subsidiaries at or within the twelve month period immediately preceding the Date of Termination, which business is expected to be material to the Company. The Executive acknowledges that the restrictions contained in Section 8 are sufficiently limited so as not to restrain her from engaging in a lawful profession, trade or business of any kind.

 

    	 	9	 

     

    

 

  8.3. Agreement Not to Solicit Customers during the Term of this Agreement. The Executive agrees that during her employment hereunder, she will not, on behalf of any person or entity other than the Company and its Affiliates, directly or indirectly, solicit or encourage any customer or vendor of the Company or its Subsidiaries to terminate or diminish their relationships with any of them or violate any agreement with or duty to the Company or any of the Company's Subsidiaries.

 

  8.4. Agreement Not to Solicit Customers after the Term of this Agreement. The Executive acknowledges that access to Confidential Information and to the Company's and its Subsidiaries' customers would give the Executive an unfair competitive advantage were the Executive to leave employment and begin competing with the Company or its Subsidiaries, and she is therefore being granted access to Confidential Information and the customers of the Company and its Subsidiaries in reliance on her agreement hereunder. The Executive agrees that for a period of twelve (12) months following the Date of Termination (the "Non-Solicitation Period"), she will not, directly or indirectly, use or rely in any way upon any Confidential Information of the Company or its Subsidiaries to recruit, solicit, or otherwise seek to induce any customer or vendor of the Company or its Subsidiaries to terminate or diminish their relationship with or violate any agreement with or duty to the Company or its Subsidiaries.

 

  8.5. Agreement Not to Solicit Employees or Other Service Providers. The Executive agrees that during her employment hereunder and for a period of twelve (12) months following the Date of Termination, she will not, directly or indirectly, (a) recruit, solicit, or otherwise seek to induce any employees of the Company or its Subsidiaries to terminate their employment or violate any agreement with or duty to the Company or its Subsidiaries, or (b) recruit, solicit, or otherwise seek to induce any individual providing services to the Company or its Subsidiaries as an independent contractor, consultant, or through any other relationship to terminate or diminish their relationships with the Company or its Subsidiaries.

 

    	 	10	 

     

    

 

9. Enforcement of Covenants.
The Executive acknowledges that she has carefully read and considered all the terms and conditions of this Agreement, including
without limitation the restraints imposed upon her pursuant to Sections 7 and 8 hereof. The Executive agrees that said restraints
are necessary for the reasonable and proper protection of the Company and its Affiliates and that each and every one of the restraints
is reasonable in respect to subject matter, length of time and geographic area. The Executive further acknowledges that, were she
to breach any of the covenants or agreements contained in Sections 7 or 8 hereof, the damage to the Company and its Affiliates
could be irreparable. The Executive therefore agrees that the Company shall be entitled to seek preliminary and permanent injunctive
relief against any breach or threatened breach by the Executive of any of said covenants or agreements. The Company’s Affiliates
shall also have the right to enforce all of the Employee’s obligations to such Affiliates hereunder, including without limitation
pursuant to Sections 7 and 8 hereof, and each of such Affiliates shall otherwise be a third party beneficiary of this Agreement.
The parties further agree that in the event that any provision of Section 7 or 8 hereof shall be determined by any court of competent
jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great
a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted
by law.

 

10. Conflicting Agreements.
The Executive hereby represents and warrants that the execution of this Agreement and the performance of her obligations hereunder
will not breach or be in conflict with any other agreement to which or by which the Executive is a party or is bound and that the
Executive is not now subject to any covenants against competition or solicitation or similar covenants, a court order or any other
obligations that would affect the performance of her obligations hereunder. The Executive will not disclose to or use on behalf
of the Company or any of its Subsidiaries any proprietary information of a third party without such party's consent.

 

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

 

  11.1. "Affiliate" shall mean, with respect to any specified Person, (a) any other Person which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person (for the purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise) and (b) with respect to any natural Person, any member of the immediate family of such natural Person.

 

    	 	11	 

     

    

 

  11.2 "Confidential Information" means any and all information of the Company and its Affiliates that is not generally known by others with whom any of them compete or do business, or with whom any of them plan to compete or do business, and any and all information the disclosure of which would otherwise be adverse to the interests of the Company or any of its Affiliates. Confidential Information includes without limitation such information relating to (i) the products and services sold or offered by the Company or any of its Affiliates, technical data, methods and processes of the Company, (ii) the costs, sources of supply, financial performance and marketing activities and strategic plans of the Company and its Affiliates, (iii) the identity and special needs of the customers of the Company and its Affiliates and (iv) the people and organizations with whom the Company and its Affiliates have business relationships and those relationships. Confidential Information also includes information that the Company or any of its Affiliates may receive or has received belonging to others with any understanding, express or implied, that it would not be disclosed. Confidential Information shall not include any information that is, or becomes generally available to the public, unless such availability occurs as a result of the Executive’s breach of any portion of this Agreement or any other obligation the Executive owes to the Company.

 

  11.3. "ERISA" means the federal Employee Retirement Income Security Act of 1974 or any successor statute, and the rules and regulations thereunder, and, in the case of any referenced section thereof, any successor section thereto, collectively and as from time to time amended and in effect.

 

  11.4. "Intellectual Property" means any invention, formula, pattern, compilation, program, device, method, technique or process (whether or not patentable or registrable under copyright statutes) conceived, made, or first actually reduced to practice by the Executive (whether alone or jointly with others) during the Executive's employment by the Company; provided, however, that Intellectual Property does not include any invention (i) that is developed on the Executive's own time, without using the equipment, supplies, facilities or trade secret information of the Company or any of its Affiliates, unless such invention relates at the time of conception or reduction to practice of the invention (a) to the business of the Company, (b) to the business of an Affiliate of the Company for whom the Executive has performed services, (c) to the actual or demonstrably anticipated research or development of the Company or any of its Affiliates, provided that, in the case of an Affiliate of the Company, the Executive has, or reasonably would be expected to have, knowledge of such research or development as a result of her employment or (d) results from any work performed by the Executive for the Company or any of the Affiliates; or (ii) that the Executive may otherwise not be required to assign to the Company under applicable California law.

 

  11.5. “Person" means an individual, a corporation, an association, a partnership, a limited liability company, an estate, a trust and any other entity or organization, other than the Company or any of its Affiliates.

 

  11.6. "Subsidiary" means any corporation, partnership, limited liability company or other entity with respect to a specified Person (or a Subsidiary thereof) owns a majority of the common stock, partnership interests or other equity interests or has the power to vote or direct the voting of sufficient securities to elect a majority of the directors.

 

    	 	12	 

     

    

 

12. Withholding.
All payments made by the Company under this Agreement shall be reduced by any tax or other amounts required to be withheld by
the Company under applicable law or withheld by the Company at the request of the Executive.

 

13. Section 409A.

 

The provisions
of this Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and any final regulations and guidance promulgated thereunder (“Section 409A”) and shall be construed in a manner
consistent with the requirements for avoiding taxes or penalties under Section 409A. The Company and Executive agree to work together
in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or
desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

To the
extent that Executive will be reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section 409A,
(a) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount
of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible
for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided that the foregoing clause (b) shall
not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such
expenses are subject to a limit related to the period the arrangement is in effect and (c) such payments shall be made on or before
the last day of the taxable year following the taxable year in which you incurred the expense.

 

A termination
of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of
any amounts or benefits upon or following a termination of employment unless such termination constitutes a “Separation from
Service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement references to a “termination,”
“termination of employment” or like terms shall mean Separation from Service.

 

Each
installment payable hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including
Treasury Regulation Section 1.409A-2(b)(2)(iii). Each payment that is made within the terms of the “short-term deferral”
rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule. Each
other payment is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation
Section 1.409A-1(b)(9)(iii), et. seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from
Code Section 409A being subject to Code Section 409A.

 

    	 	13	 

     

    

 

Notwithstanding
anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A
at the time of Executive’s termination, then only that portion of the severance and benefits payable to Executive pursuant
to this Agreement, if any, and any other severance payments or separation benefits which may be considered deferred compensation
under Section 409A (together, the “Deferred Compensation Separation Benefits”), which (when considered together)
do not exceed the Section 409A Limit (as defined herein) may be made within the first six (6) months following Executive’s
termination of employment in accordance with the payment schedule applicable to each payment or benefit. Any portion of the Deferred
Compensation Separation Benefits in excess of the Section 409A Limit otherwise due to Executive on or within the six (6) month
period following Executive’s termination will accrue during such six (6) month period and will become payable in one lump
sum cash payment on the date six (6) months and one (1) day following the date of Executive’s termination of employment.
All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable
to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following termination but prior
to the six (6) month anniversary of Executive’s termination date, then any payments delayed in accordance with this paragraph
will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred
Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.

 

For purposes
of this Agreement, “Section 409A Limit” will mean a sum equal (x) to the amounts payable prior to March 15 following
the year in which Executive terminations plus (y) the lesser of two (2) times: (i) Executive’s annualized compensation based
upon the annual rate of pay paid to Executive during the Company’s taxable year preceding the Company’s taxable year
of Executive’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any IRS guidance
issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section
401(a)(17) of the Code for the year in which Executive’s employment is terminated.

 

If
any payment provided to Executive pursuant to this Agreement is subject to adverse tax consequences under Code Section 409A, then
Company shall make such additional payments to Executive (“409A Gross Up Payments”) as are necessary to provide
Executive with enough funds to pay the additional taxes, interest, and penalties imposed by Code section 409A (collectively, the
“409A Tax”), as well as any additional taxes, including but not limited to additional 409A Tax, attributable
to or resulting from the payment of the 409A Gross Up payments, with the end result that Executive shall be in the same position
with respect to her tax liability as she would have been in if no 409A Tax had ever been imposed; provided, however, that the
Company’s obligation to make payments under this Section 15 shall be limited to an amount equal to three times the 409A
Tax (not including for this purpose 409A Tax attributable to the payment of any portion of the 409A Gross Up Payment). The Company
shall make any payments required by this paragraph no later than the last day of Executive’s taxable year next following
the Executive’s taxable year in which the 409A Tax is remitted to the taxing authority.

 

    	 	14	 

     

    

 

14. Miscellaneous.

 

  14.1. 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 obligations under this Agreement without the consent of the Executive (a) in the event that the Company shall hereafter affect a reorganization, consolidate with, or merge into, one of its Affiliates or any other Person or transfer all or substantially all of its properties or assets to one of its Affiliates or any other Person, in which event such Affiliate or Person shall be deemed the "Company" for all purposes of this Agreement, or (b) to any senior lender to the Company or any Subsidiary thereof as collateral security. 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.

 

  14.2. 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 application of such provision in such circumstances shall be deemed modified to permit its enforcement to the maximum extent permitted by law, and both the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable and the remainder of this Agreement shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

  14.3. Waiver; Amendment. 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. This Agreement may be amended or modified only by a written instrument signed by the Executive and any expressly authorized representative of the Company.

 

  14.4. 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 deposited in the United States mail, postage prepaid, registered or certified, and addressed (a) in the case of the Executive, to her last address on record with the Company, or (b) in the case of the Company, at its principal place of business and to the attention of the Board; or to such other address as either party may specify by notice to the other actually received.

 

  14.5. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior communications, agreements and understandings, written or oral, with the Company or any of its Affiliates, with respect to the terms and conditions of the Executive's employment.

 

    	 	15	 

     

    

 

  14.6. 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.

 

  14.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

 

14.8. Governing
Law. This Agreement, with the exception of Section 8, shall be governed by and construed in accordance with the domestic substantive
laws of The State of California without giving effect to any choice or conflict of laws provision or rule that would cause the
application of the domestic substantive laws of any other jurisdiction.

 

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

 

 

THE COMPANY:

 

GENIUS BRAND INTERNATIONAL, INC.

 

 

 

By:____/s/ Andy
Heyward____________________

Name: Andy Heyward

Title: Chief Executive Officer

 

 

 

THE EXECUTIVE:

 

 

 

____/s/ Rebecca
Hershinger__________________

Rebecca Hershinger

 

 

    	 	16

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