Document:

Exhibit 10.2

 

SEPARATION AGREEMENT AND MUTUAL
GENERAL RELEASE

 

This Separation Agreement and Mutual
General Release (“Agreement”) is made and entered into by and between Burton A. Goldstein (the “Executive”)
and Quest Patent Research Corporation, a Delaware corporation (the “Company”).

 

WHEREAS, Executive had been employed
by the Company since on or about December 1, 1997, and is a party to an Employment Agreement with the Company dated March 1, 2008
(the “Employment Agreement”) and Executive’s employment with the Company was terminated on June 20, 2014
(the “Termination Date”);

 

WHEREAS, under the terms of the Employment
Agreement the Executive was granted five (5) million warrants to purchase the common stock of the Company at an exercise price
of $0.004, the warrants vested upon execution of the Employment Agreement and expire on March 1, 2015 (the “2008 Warrants”);

 

WHEREAS, the Executive claims principal
and accrued interest of approximately $12,500 and $13,440 respectively on various loans Executive made to the Company during the
period from approximately February 2002 through June 2003 (the “Goldstein Loan”);

 

WHEREAS, Executive resigned from the
Board of Directors of the Company on August 27, 2014 (the “Resignation Date”);

 

WHEREAS, on August 4, 2014, the Company
filed a complaint in the Court of Chancery for the State of Delaware for a declaratory judgment seeking to have the Court declare
the Employment Agreement void ab initio (the “Delaware Action”); and

 

WHEREAS, the parties desire to settle
all claims and issues that have, or could have been raised, in relation to the Delaware Action, the Goldstein Loan, the Executive’s
employment with, and/or service as a member of the Board of Directors (the “Board”) of the Company and arising
out of or in any way related to the acts, transactions or occurrences between Executive and Company to date, including, but not
limited to, the Delaware Action, the Goldstein Loan, and the Executive’s employment with, and/or service as a member of the
Board of Directors of the Company or the termination of that employment, on the terms set forth herein.

 

NOW, THEREFORE, for and in consideration
of the mutual promises and the mutual covenants and agreements herein contained, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and Executive, intending to be legally bound, hereby agree
as follows:

 

		1.	Definitions. Terms defined in the preamble have their assigned meanings, and the following terms have the meanings
assigned to them.

 

		1.1.	“Claims” means any and all legally waivable claims, wages, demands, rights, liens, agreements, contracts,
covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders,
liabilities, complaints, controversies and promises of any kind or nature whatsoever, in law or equity, known or unknown, suspected
or unsuspected, and whether or not concealed or hidden.

 

    	 

    	 

    

 

		1.2.	“Company Affiliates” means the Company’s direct and indirect subsidiaries, affiliates, companies,
divisions, and units.

 

		1.3.	“Company Information” means all Company documentation and data including, without limitation all financial
information, accounting records, corporate records, data, materials, papers, books, files, documents, records, reports, memoranda,
customer information and lists, marketing information, data base information and lists, mailing lists, shareholder lists, and notes,
including but not limited to any property describing or containing any Confidential Information; stamps, seals; and all other property
which Executive received, prepared, helped prepare or had prepared by a third party on behalf of Company or at Executive’s
direction in connection with and in the course of Executive’s employment with the Company or otherwise in Executive’s
possession or control.

 

		1.4.	“Confidential Information” means information related to the business of the Company that is not publicly
available including attorney client communications, certain financial information concerning the business of the Company, and proprietary
business materials.

 

		1.5.	“Net Revenues of the Company” means, with respect to any calendar year, gross revenues from all Patent
Enforcement Proceedings less the cost of all (i) associated attorneys’ fees; (ii) disbursements, distributions or payments
to investors under funding agreements; and (iii) distributions to partners with a contractual right to share in the proceeds, such
as for example: Allied Standard Limited, The Betting Service Limited, Neil Riches, and Sol Li. To the extent the Company has other
revenues from the sale of other products or services not related to or derived from patents, Net Revenues of the Company is hereby
further defined to include gross revenues from the sale of any such products or services less the cost of those goods or services
sold.

 

		1.6.	“Patent Enforcement Proceedings” means any and all activities related in any way to patents, including,
but not limited to, (i) patent licensing; (ii) judgments, settlements and/or agreements related to patents; and (iii) patent sales.
This definition of Patent Enforcement Proceedings is intended by the parties to have the broadest possible application.

 

		1.7.	“Qualifying Year” means any calendar year during which Net Revenues of the Company exceed one-million five-hundred
thousand dollars (US$1,500,000.00).

 

		1.8.	“Released Parties” means the Company, the Company Affiliates, and associated organizations, past
and present, and each of them, as well as its and their trustees, directors, officers, shareholders, agents, attorneys, employees,
contractors, insurers, representatives, assigns, and successors, past and present, and each of them.

 

		1.9.	“Separation Date” means the effective date of this Agreement as evidenced by signature of the parties.

 

		1.10.	“Separation Package” has the meaning assigned in Section 4.

 

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		2.	Termination of Employment Agreement; Other Agreements and Plans. Executive and the Company mutually acknowledge
and agree that the Employment Agreement is hereby terminated, and that the Employment Agreement, along with any other agreement
between the Executive and the Company, are of no further force and effect and are superseded as of the Separation Date. Notwithstanding
the foregoing, the Executive shall retain the 2008 Warrants (as defined above) as set forth in Section 4.1 below. All terms and
conditions relating to Executive's separation from the Company and the Company's entire obligations with respect thereto shall
be as set forth in this Agreement. In addition, and for the avoidance of doubt, this Agreement supersedes any and all agreements
set forth in the Employment Agreement and any other agreement between the Company and Executive with respect to compensation and
termination of benefits and the Company's obligations with respect thereto, including, but not limited to, annual base salary,
cash bonuses, warrants to purchase the stock of the Company, loan repayment obligations, and any other fringe benefits and perquisite
programs.

 

		3.	Termination and Resignation. The Executive’s employment with the Company and the Company Affiliates terminated
effective as of the Termination Date. The Executive resigned from any and all directorships on the Board of the Company or Company
Affiliates as of the Resignation Date. From and after the Separation Date, Executive will not be, and will not hold himself out
as, an employee, officer or director of the Company and will not say or do anything purporting to bind the Company. Executive agrees
that, given his termination and resignation from the Company, Executive no longer serves in any and all officer, committee and/or
director positions, if any, that he held with Company, effective as of the Resignation Date. The Executive understands and agrees
that from and after the Resignation Date, he was no longer authorized to incur any expenses, obligations or liabilities on behalf
of the Company or the Company Affiliates.

 

		4.	Separation Package. Subject to the provisions detailed in this Section 4, Company agrees to provide Executive
with the following Separation Package set forth herein. Executive acknowledges and agrees that this Separation Package is the Executive’s
exclusive compensation and remedy with respect to his separation from the Company and that this Separation Package constitutes
adequate legal consideration for the promises and representations made by him in this Agreement.

 

		4.1.	Equity Consideration.  The Executive shall retain the 2008 Warrants and Company shall provide to Executive an
executed warrant grant in the form attached hereto as Exhibit A, dated as of the execution of this Agreement.

 

		4.2.	Cash Consideration.

 

		4.2.1.	Payment. The Company shall pay the Executive the total sum of two-hundred fifty thousand dollars (US$250,000.00)
(the “Cash Consideration”) as follows:

 

Beginning with calendar year 2015, and continuing
until the Cash Consideration is paid in full, an amount equal to three and one-quarter percent (3.25%) of Net Revenues of the Company
in any Qualifying Year.

 

			For the avoidance of doubt, in the event that the Company's Net Revenues in a specific calendar year total $1,500,000 or less,
Executive shall be entitled to be paid the sum of $0.00. If Net Revenues in a specific calendar year total $1,600,000, Executive
shall be entitled to be paid the sum of $52,000 ($1,600,000 x 3.25%) for that specific calendar year.

 

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		4.2.2.	Timing of Payment. Payment, if any, under this Section 4.2 shall be made no later than April15th in the year
following a Qualifying Year but shall not exceed one-hundred twenty-five thousand dollars (US$125,000.00) in any year payment is
made.

 

		5.	No Other Consideration. Executive agrees that Executive will not seek any payment, benefit, compensation or consideration
of any kind from Company arising from Executive’s employment with the Company through the Separation Date, or any purported
loan to or note obligation of the Company other than as set forth in Section 4. Except as specifically provided for in Section
4, the Executive shall not be entitled to receive any compensation or benefits of employment from the Company or any Company Affiliate
following the Separation Date.

 

		6.	Taxes. The Company may withhold from all payments due to Executive (or his beneficiary or estate) hereunder all
taxes which, by applicable federal, state, local or other law, the Company is required to withhold therefrom. The first twelve
thousand five hundred dollars (US$12,500) in payments of Cash Consideration provided for in Section 4.2 will be considered a return
of principal in relation to the Goldstein Loan and the remaining payments will be reported on an IRS Form 1099 and will not be
subject to withholdings or deductions. Executive understands and agrees that the Company is providing him with no representations
regarding tax obligations or consequences that may arise from this Agreement and the issuance of the consideration provided for
herein, Executive agrees to be solely responsible for the payment of all applicable income, transfer, sales, use and other taxes
under federal, state, local or other law, and any other charges of any type or kind which are or may become due and owing by Executive
as a result of the payments or transfers or use of property from the Company to the Executive hereunder, without seeking any further
payment from the Company

 

		7.	Accounting. For every calendar year beginning with 2014, the Company shall provide the Executive with
a detailed written accounting regarding the Net Revenues of the Company for such year. This accounting shall contain information
sufficient to calculate the Net Revenues of the Company and shall provide detail about the specific categories set forth in the
definition of Net Revenues of the Company as set forth in Section 1.5 above. This Accounting shall be provided by the Company to
the Executive within ninety (90) days of the conclusion of the calendar year at issue. The Executive may request additional information
about the calculation of Net Revenues of the Company and the Company shall provide such information on a timely basis. In the event
that the gross revenues of the Company do not exceed $1,500,000 in a specific calendar year, the Company shall have no obligation
to account to Executive during that calendar year provided that the Company has filed its 10K for that calendar year.

 

		8.	Release.

 

		8.1.	Executive does hereby unconditionally, irrevocably and absolutely release, acquit, forever discharge, and agree to hold the
Released Parties, and Company does hereby unconditionally, irrevocably and absolutely release, acquit, forever discharge, and agree
to hold the Executive, harmless from all Claims related in any way to the transactions or occurrences between them to date and
all actions taken by Executive on behalf or relating to the Company, in either case to the fullest extent permitted by law, including,
but not limited to, Executive’s employment with the Company, the termination of Executive’s employment with the Company,
Executive’s service on the Board, the Goldstein Loan, and all other Claims arising directly or indirectly out of or in any
way connected with the Executive’s employment with the Company and service on the Board. This release is intended to have
the broadest possible application and includes, but is not limited to, any tort, contract, common law, constitutional or other
statutory claims, all claims for reprisal or retaliation under federal or state law, and all claims for attorney’s fees,
costs and expenses.

 

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		8.1.1.	For the avoidance of doubt, with respect to the Goldstein Loan, to the extent any valid loan obligation to Executive exists,
Executive does hereby unconditionally, irrevocably and absolutely release, acquit, forever discharge, and forgive all principal
and accrued interest owed, or claimed to be owed, to Executive by the Released Parties.

 

		8.1.2.	For the avoidance of doubt, with respect to any claim by Executive to accrued compensation under any agreement, or purported
agreement, at any time between Executive and the Company, Executive does hereby unconditionally, irrevocably and absolutely release,
acquit, forever discharge all such accrued compensation owed, or claimed to be owed, to Executive by the Released Parties.

 

		8.2.	The parties acknowledge that they may discover facts or law different from, or in addition to, the facts or law that they know
or believe to be true with respect to the Claims released in this Agreement and agree, nonetheless, that this Agreement and the
releases contained in it shall be and remain effective in all respects notwithstanding such different or additional facts or the
discovery of them.

 

		8.3.	The parties declare and represent that they intend this Agreement to be complete and not be subject to any claim of mistake,
and that the releases herein express final, full and complete releases, and regardless of the adequacy or inadequacy of the consideration,
the parties intend the releases herein to be final and complete. The parties execute these releases with the full knowledge that
these releases cover all possible claims between them to date, to the fullest extent permitted by law, except as otherwise provided
in this Agreement.

 

		8.4.	The parties expressly waive their right to recovery of any type, including damages or reinstatement, in any administrative
or court action, whether state or federal, and whether brought by either party, or on either party's behalf, related in any way
to the matters released herein.

 

		8.5.	The general release and other provisions contained in this Section 8 shall become effective immediately upon execution of this
Agreement by the Parties.

 

		8.6.	Notwithstanding paragraphs 8.1 – 8.5 above, the parties do not release and discharge (a) any claim for breach of this
Agreement; and any claim that cannot be released by law.

 

		9.	Representations Concerning Legal Actions. Executive represents that, as of the date of this Agreement, he has
not filed any lawsuits, charges, complaints, petitions, claims or other accusatory pleadings against Company or any of the other
Released Parties in any court or with any governmental agency. Executive further agrees that, to the fullest extent permitted by
law, he will not prosecute, nor allow to be prosecuted on his behalf, in any administrative agency, whether state or federal, or
in any court, whether state or federal, any claim or demand of any type related to the matters released above, it being the intention
of the parties that with the execution of this release, the Released Parties will be absolutely, unconditionally and forever discharged
of and from all obligations to or on behalf of Executive related in any way to the matters discharged herein.

 

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		10.	Dismissal of Delaware Action. The Company covenants that within five (5) days of the effective date of this Agreement,
the Executive, or counsel for the Executive, and counsel for the Company shall execute and file a stipulation of dismissal, with
prejudice, of the Delaware Action.

 

		11.	Cooperation by Executive. The Executive agrees to fully cooperate with the Company in accomplishing the separation
and agrees to immediately provide the Corporation—including its auditor, counsel, and/or agent—with any and all books,
records, paperwork, documentation, memoranda, etc. requested by the Company in the Executive’s possession, custody or control.

 

		12.	Cooperation by Company. With respect to the 2008 Warrants, in the event the Executive exercises some or all of
such warrants, the Company shall take all reasonable and necessary steps in order to ensure that the shares of stock can be issued
and shall do so at its own cost and expense.

 

		13.	Return of Company Information. The Executive represents, warrants and covenants that the Executive has returned
to the Company (or will return to the Company within five (5) business days of the execution of this Agreement) any and all Company
Information in the Executive’s possession or control. The Company agrees to pay the shipping costs in connection with the
Executive’s return of such documents.

 

		13.1.	Third Party Possession. To the extent Executive is unable to provide certain Company Information, the Executive
shall at the time of execution of this Agreement provide an itemized list, attached as Schedule 1, of all such Company Information,
the name and contact information for the party in possession of such information, and the reason Executive is unable to regain
possession from the third party.

 

		14.	Confidentiality. Executive acknowledges that, throughout and as an incident to his employment with the Company,
the Executive has become acquainted with and received Confidential Information. Accordingly, Executive will not, at any time, reveal,
divulge, or make known to any person, firm or corporation any Confidential Information made known to the Executive or of which
the Executive has become aware, regardless of whether developed, prepared, devised, or otherwise created in whole or in part by
the efforts of the Executive. The Executive further agrees that he will retain all Confidential Information in trust for the sole
benefit of the Company, and will not divulge or deliver any Confidential Information to any unauthorized person except as required
by the order of any court or similar tribunal or any other governmental body or agency of appropriate jurisdiction. The Executive
acknowledges that the Confidential Information is of incalculable value to the Company and is the exclusive property of the Company,
and that the Company would suffer irreparable damage if any of the Confidential Information is improperly disclosed or used, and
that, therefore, the Company shall be entitled to an injunction, without the posting of any bond or other security, prohibiting
Executive from any such disclosure, attempted disclosure, violation or threatened violation. Executive agrees to notify the Company,
in writing, at least ten (10) days prior to the response deadline or appearance date (whichever is earlier) for any such court
order, subpoena, or notice of deposition issued by the court or investigating agency which seeks disclosure of the information
referenced in this section and agrees to cooperate with the Company in obtaining a protective order or such similar protection
as the Company may deem appropriate to preserve the confidential nature of such information. The foregoing obligations to maintain
the Confidential Information shall not apply to any Confidential Information that is, or without any action by the Executive becomes,
generally available to the public.

 

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		14.1.	Regulatory Filings. The Company shall not be prohibited from filing this Agreement and related agreements with
the Securities and Exchange Commission and/or other governmental agencies to the extent required by applicable laws or regulations.

 

		15.	No Continuing Relationship. The Executive and the Company acknowledge that any employment, contractual or other
relationship between the Executive and the Company terminated as of the Separation Date and that they have no further employment,
contractual or other relationship except as may arise out of this Agreement and the Executive’s exercise of the 2008 Warrants.
The Executive waives any right or claim to reinstatement as an employee of the Company, and will not seek reelection to the Board
of the Company at any time in the future.

 

		16.	No Admission.

 

		16.1.	Executive acknowledges and agrees that this Agreement is not intended by Company to be construed, and will not in any way be
construed, in any legal, administrative or other similar proceeding, as an admission by the Company that it has engaged in, or
is now engaging in, wrongful conduct with respect to Executive or any other person, or that Executive has any claims whatsoever
against Company, and Company specifically disclaims any liability to or wrongful acts against Executive or any other person, on
the part of itself, its employees or its agents.

 

		16.2.	Company acknowledges and agrees that this Agreement is not intended by Executive to be construed, and will not in any way be
construed, in any legal, administrative or other similar proceeding, as an admission by the Executive that he has engaged in, or
is now engaging in, wrongful conduct with respect to Company or any other person, or that Company has any claims whatsoever against
Executive, and Executive specifically disclaims any liability to or wrongful acts against Company or any other person, on the part
of himself or his agents.

 

		17.	Obligations Regarding Section 16 Reporting. The Executive understands and agrees that the Company will not undertake
to file any Forms 4 or 5 or other reports with the Securities and Exchange Commission on his behalf. The Executive further understands
and agrees that all responsibility for Section 16 compliance under the Securities Exchange Act of 1934 is his own and that the
Company will not have any responsibility or liability with respect to any failure to file (or delinquent filing of) a Form 4 or
5, any violation of Section 16(a) of the Securities Exchange Act of 1934 or any short swing profits under Section 16(b) of that
Act.

 

		18.	Unemployment. The Executive expressly acknowledges and agrees he has no claim to, and will not make any claim
for, unemployment benefits, from any federal, state, local government agency or private entity, as a result of his prior employment
with the Company, his subsequent termination from the Company, and/or this Agreement.

 

		19.	No Representation. The Executive agrees and acknowledges that in executing this Agreement he does not rely and
has not relied on any representation or statement by any of the Released Parties or by any of the Released Parties’ agents,
representatives or attorneys with regard to the subject matter, basis or effect of this Agreement.

 

		20.	Consultation with Legal Counsel. Executive expressly acknowledges that, before signing this Agreement:

 

		20.1.	Executive has been given adequate time to decide whether to sign this Agreement, including, without limitation, the waiver
and release set forth in Section 8, and Executive does so only after full reflection and analysis;

 

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		20.2.	Executive was advised of his right to consult with legal counsel and/or other advisors selected by Executive regarding the
terms and conditions of this Agreement, and that Executive has obtained and considered such legal counsel as he deems necessary;

 

		20.3.	Executive knows and understands the contents of this Agreement;

 

		20.4.	Executive is fully aware of the legal and binding effect of this Agreement; and

 

		20.5.	Executive enters into this Agreement of his own free will, and without any inducement not described in this Agreement, and
not under duress or coercion of any nature, with the full intent of releasing any and all Claims as set forth in this Agreement.

 

		21.	Remedies. The Company and/or the Executive shall be entitled to injunctive or other equitable relief to enforce
the covenants of this Agreement, such relief to be without the necessity of posting a bond, cash or otherwise, without limiting
other possible remedies of the Company and/or the Executive.

 

		22.	No Assignment: The Executive represents that he has not heretofore assigned or transferred, or purported to assign
or transfer, to any person or entity, any claim or any portion thereof or interest therein, and the Executive agrees to indemnify,
defend and hold harmless each and all of the Released Parties against any and all disputes based on, arising out of, or in connection
with any such transfer or assignment, or purported transfer or assignment, of any claims or any portion thereof or interest therein.

 

		23.	Severability. If any provision of this Agreement or the application thereof is held invalid, the invalidity shall
not affect other provisions or applications of the Agreement which can be given their intended effect without the invalid provisions
or applications and to this end the provisions of this Agreement are declared to be severable. If, however, a court of competent
jurisdiction finds that any release by the Executive in Section 8 above is illegal, void, or unenforceable, the Executive will
promptly sign a release, waiver, and/or agreement that is legal and enforceable to the greatest extent permitted by law.

 

		24.	Notice. All notices, requests, demands and other communications hereunder to either party shall be in writing
and shall be delivered, either by hand, by electronic may, by facsimile, by overnight courier or by certified mail, return receipt
requested, duly addressed as indicated below or to such changed address as the party may subsequently designate:

 

To the Company:

 

Jon Scahill, President &
CEO

 

411 Theodore Fremd Ave., Suite
206S, Rye, NY 10580

 

Email: jscahill@qprc.com

 

Fax: 800-411-1560

 

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Copy to attorney for the Company:

 

Alfred Fabricant, Partner Brown
Rudnick LLP

 

7 Times Square, New York, New
York 10036

 

Email: afabricant@brownrudnick.com

 

Fax: 212-938-2983

 

To the Executive:

 

Burton Goldstein

 

22 Herb Hill Rd., Glen Cove,
NY 11542

 

Email: brtnglds@yahoo.com

 

		25.	Governing Law and Jurisdiction. This Agreement is made and shall be interpreted, enforced and governed under
Delaware law, without regard to conflict of laws principles. Any and all disputes arising out of or relating to this Agreement
shall be resolved exclusively in the Delaware Chancery Court, and both the Company and the Executive hereby submit to the personal
jurisdiction of that court for purposes of resolving any such disputes.

 

		26.	Counterparts. This Agreement may be executed in one or more counterparts. The execution of a signature page of
this Agreement shall constitute the execution of the Agreement, and the agreement shall be binding on each party upon the date
of signature, if each party executes such counterpart. A copy, facsimile or electronically transmitted signatures shall be given
the same force and effect as original signatures.

 

		27.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Executive and the Company
(and the Released Parties) and each party’s respective heirs, representatives, executors, administrators, successors and
assigns.

 

		28.	Construction. Throughout this Agreement, nouns, pronouns and verbs will be construed as masculine, feminine,
neuter, singular or plural, whichever will be applicable. All references herein to "Sections" will refer to corresponding
provisions of this Agreement. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties,
and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions
of this Agreement. The word "including" will mean including without limitation. The headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

		29.	Expenses. Each of the parties hereto shall pay its own fees and expenses incurred in connection with this Agreement
and the consummation of the transactions contemplated hereby.

 

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		30.	Entire Agreement: This Agreement is intended to and does constitute and contain the entire agreement and understanding
concerning: the Executive’s employment with and separation from the Company; the Goldstein Loan; and the other subject matters
addressed herein between the parties, and supersedes and replaces all prior negotiations and all agreements proposed or otherwise,
whether written or oral, concerning the subject matters hereof. It is agreed that there are no collateral agreements or representations,
written or oral, regarding the terms and conditions of the Executive’s employment with and separation from the Company, the
Goldstein Loan, and settlement of all claims between the parties other than those set forth in this Agreement. The Executive represents
and agrees that no promises, statements or inducements have been made to him which caused him to sign this Agreement other than
those which are expressly stated in this Agreement. This is an integrated document and may not be altered except by written agreement
signed by an officer designated by the Company, and the Executive.

 

THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT
AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, AND INTENDING TO BE LEGALLY BOUND, THE PARTIES TO THIS
AGREEMENT HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW AND SHALL BE EFFECTIVE AS TO SEPARATE PORTIONS HEREOF ON THE RESPCETIVE
DATES SET FORTH BELOW.

 

	QUEST PATENT RESEARCH CORPORATION	 	BURTON A. GOLDSTEIN
	 	 	 
	BY: /s/ Jon C. Scahill	 	BY: /s/ Burton A. Goldstein
	       Jon Scahill, President & CEO	 	 
	DATE: October 10, 2014	 	DATE: October 10, 2014

 

 

10Exhibit 10.3

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This
Agreement, dated as of March 1, 2008, (the "Effective Date"), is between Quest Patent Research Corporation, a Delaware
corporation, (the "Company") and Herb Reichlin, an individual ("Employee").

 

1.Term:
The Company shall employ Employee for the period (the "Term") commencing on the Effective Date and ending upon the
earlier of (i) the tenth anniversary of the Effective Date; or (ii) the date upon which Employee's employment is terminated
in accordance with Section 5.

 

2.
Position and Responsibilities

 

2.A.
Position: Employee is employed by the Company to render services to the Company in the position of Chief Executive Officer. Employee
shall perform such duties and responsibilities as are normally related to such position in accordance with the standards of the
industry and any additional duties now or hereafter assigned to Employee by the Board of Directors. Employee shall abide by the
Company's rules, regulations, and practices as they may from time-to-time be adopted or modified.

 

2.B. Activities: Except upon the prior written consent of the Company, Employee will not, during the Term, (i) accept any other
full time employment, or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary
advantage) that might interfere with Employee's duties and responsibilities hereunder or create a conflict of interest with the
Company. During the Term, Employee shall devote substantially all of his business time and attention to the Company except for
such time as Employee shall devote to his separate accounting practice.

 

2.C.
No Conflict: Employee represents and warrants that Employee's execution of this Agreement, his employment with the Company, and
the performance of his proposed duties under this Agreement shall not violate any obligations Employee may have to any other employer,
person or entity, including any obligations with respect to proprietary or confidential information of any other person or entity.

 

3.Compensation
and Benefits

 

3.A. Base
Salary: In consideration of the services to be rendered under this Agreement, the Company shall pay Employee a salary at the rate
of two hundred fifty thousand ($250,000) Dollars per year ("Base Salary"). The Base Salary shall be paid as funds are
available in accordance with compensation policies to be determined by the Company from time to time. Employee's Base Salary will
be reviewed at least annually in accordance with the Company's established procedures for adjusting salaries for similarly situated
employees and may be increased in the sole discretion of the Company's Compensation Committee. The Base Salary may not be decreased,
except upon a mutual written agreement between the parties. Unpaid salary under this agreement shall accrue until paid.

 

    	Executive Employment Agreement - Herb Reichlin	Page 1

    	 

    

 

3.B.
Signing Bonus: As a signing bonus, and as consideration for Employee's deference of base salary until such time as the company
is in a position to pay such salary, the Company shall transfer to Employee 5,000,000 cashless Warrants of the Company's Common
Stock, with a strike price of $0.004 per share, said Warrants to expire on the expiration date of this Employment Agreement. Said
Warrants shall be considered fully vested as of the execution date of this Employment Agreement.

 

3.C.
Regular Bonus: Employee shall receive as an annual bonus 10% of the Company's consolidated income before taxes.

 

3.D.
Stock and Stock Options: Employee currently owns Common Stock and/or Preferred Stock in the Company. The Company's Compensation
Committee, in its sole discretion, may grant Employee one or more stock, stock options, warrants or other equity rights.

 

3.E.
Employee Representations: In connection with the Warrants in the Common Stock to be granted to Employee pursuant to Section 3.B
and any future grants of stock, stock options, warrants or other equity rights pursuant to this Section 3.D, Employee represents
and warrants that:

 

3.E(1)(a)
Employee is an "accredited investor" within the meaning of Rule 501 of the General Rules and Regulations under the Securities
Act of 1933, as amended;

 

3.E(1)(b)
Employee has sufficient knowledge and experience in financial and investment matters so that Employee is able to evaluate the
risks and merits of Employee's investment in the Company's Stock and is able financially to bear the economic risks thereof;

 

3.E(1)(c)
Employee will acquire the Warrants in the Company Stock for Employee's own account and not with a view to or for sale in connection
with any distribution thereof in violation of any securities laws, and Employee has no present or future intention of selling
or distributing any of such securities in violation of any securities laws; and

 

3.E(1)(d) Employee is familiar with the business and financial condition, properties and operations and prospects of the Company,
and has been afforded the opportunity to ask questions and receive answers from the Company's officers and directors concerning
the business and financial condition, properties, operations and prospects of the Company, and has asked such questions as Employee
desires to ask and all such questions have been answered to Employee's full satisfaction.

  

    	Executive Employment Agreement - Herb Reichlin	Page 2

    	 

    

 

3.E(2)
Stock Certificate Legend: The Company may, if required by securities laws, cause to conspicuously appear on all Stock Certificates
representing the Company's Stock which are issued and delivered to Employee, upon exercise of Warrants, pursuant to the provisions
of Section 3.B or this Section 3.D, the legend set forth below, the provisions of which are agreed to by Employee:

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL (I) SUCH OFFERING AND SALE OR OTHER TRANSFER
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, OR (II) THE HOLDER HEREOF PROVIDES THE COMPANY WITH (A) A WRITTEN OPINION OF LEGAL
COUNSEL, WHICH COUNSEL AND OPINION (IN FORM AND SUBSTANCE) SHALL BE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT
THE PROPOSED TRANSFER OF SUCH SECURITY MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT, OR (B) SUCH OTHER EVIDENCE
AS MAYBE REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER OF THIS SECURITY MAYBE EFFECTED WITHOUT REGISTRATION
UNDER THE SECURITIES ACT.

 

3.F.
Benefits: The Company will provide Employee with benefits in accordance with the benefit plans established by the Company for
similarly-situated executives from time to time in the Company's sole discretion. The Company will seek to establish a medical
and dental insurance plan and a 401K Plan as promptly as practicable after the Effective Date. The Company shall also provide
Employee with at least four weeks of paid vacation leave annually, which shall be governed by the Company's regular policies and
practices regarding vacation leave (as may be amended from time to time in the Company's sole discretion).

 

3.G.
Expenses: The Company shall reimburse Employee for all reasonable business expenses incurred in the performance of his duties
hereunder in accordance with the Company's expense reimbursement guidelines.

 

3.H.
Company Vehicle: The Company, when it is financially able to do so, will pay the cost of leasing or owning a Company vehicle for
Company use, which shall be a full-sized sedan or a full-sized truck or sport utility vehicle. In addition, the Company will reimburse
Employee for all operating expenses, maintenance and fees, including but not limited to, automobile insurance. In the event Employee's
employment is terminated, the Employee will promptly surrender the vehicle to the Company pursuant to this Section 3.G.

 

3.I.
Laptop Computer/Cellular Telephone: The Company will provide Employee with a laptop computer, with normal business software installed,
and a cellular phone PDNSmart Phone.

 

    	Executive Employment Agreement - Herb Reichlin	Page 3

    	 

    

 

3.J.
Indemnification: The Company agrees to defend and indemnify Employee against any liability that Employee incurs within the scope
of his employment with the Company to fullest extent permitted by the Company's articles and by-laws and applicable state corporate
law.

 

4.Forgiveness
of Salary Accrued Prior To Effective Date

 

4.A.
As further and additional consideration for entering into this Employment Agreement, Employee hereby relinquishes and forgives
all deferred salary and all benefits accrued prior to the Effective Date hereof.

 

5.Termination
of Employment; Severance

 

5.A.
Termination By the Company: The Company may terminate Employee's employment with the Company for Cause prior to the scheduled
expiration date of the Term.

 

5.B.
Severance: If Employee's employment is terminated by the Company prior to the scheduled expiration date of the Term (other than
a termination by the Company for Cause), Employee will be eligible to receive the following: (i) an amount equal three (3) times
employee's average annual total compensation, calculated by averaging the total salary and bonus compensation for the five years
prior to termination ("Severance") payable as follows:

 

50%
of the Severance shall be paid as a lump sum within a reasonable period not to exceed sixty (60) days following the termination
date and 50% of the Severance will be paid as salary continuation for twelve (12) months following the termination date; and (ii)
reimbursement for any COBRA payments made by Employee for COBRA coverage during the twelve (12) months following the termination
date. Employee shall not be entitled to any Severance payments or benefit continuation unless Employee executes a general release
in favor of the Company in customary form to be provided by the Company. Employee shall not be entitled to any other payments
or benefits upon termination of his employment pursuant to this Section S.B, except as provided in Section 6.E and Section 3.1.

 

5.C.
Termination For Cause: For purposes of this Agreement, "Cause" shall mean: (i) Employee commits a crime involving dishonesty,
breach of trust, or physical harm to any person; (ii) Employee willfully engages in conduct that is in bad faith and materially
injurious to the Company, including but not limited to, misappropriation of trade secrets, fraud or embezzlement; (iii) Employee
commits a material breach of this Agreement, which breach is not cured within twenty (20) days after written notice to Employee
from the Company; (iv) Employee willfully fails to implement or follow a reasonable and lawful policy or directive of the Company,
which breach is not cured within twenty (20) days after written notice to Employee from the Company; or (v) Employee engages in
a pattern of failure to perform job duties diligently and professionally, which pattern is not cured within twenty (20) days after
written notice to Employee from the Company. Prior to the date of any termination for Cause, the Company's Board of Directors
shall meet and the Employee shall have an opportunity to present to the Board any information relevant to the event constituting
Cause, unless waived by Employee. The Company may
terminate Employee's employment For Cause at any time, without any advance notice. Upon any termination for Cause pursuant to
this Section 4.C, the Company shall pay to Employee all compensation to which Employee is entitled up through the date of termination,
and thereafter, all of the Company's obligations under this Agreement shall cease, except as provided in Section 6.E and Section
3.1.

 

    	Executive Employment Agreement - Herb Reichlin	Page 4

    	 

    

 

5.D.
By Disability: If Employee becomes eligible for the Company's long term disability benefits or if, in the reasonable opinion of
the Company's Board of Directors, Employee shall be unable to carry out the responsibilities and functions of the position held
by Employee by reason of any physical or mental impairment for more than forty-five (45) consecutive days or more than
sixty (60) days in any twelve-month period, then, to the extent permitted by law, the Company may terminate Employee's employment
for "Disability". Upon any termination for Disability pursuant to this Section S.D, the Company shall pay to Employee
all compensation to which Employee is entitled up through the date of termination, and thereafter, Company shall continue to pay
Employee's salary and bonus for a period not to exceed two (2) years from the date of termination for Disability. Nothing in this
Section shall affect Employee's rights under any disability plan in which he is a participant.

 

5.E.
Termination By Employee: Employee may terminate his/her employment with the Company at any time for any reason, including no reason
at all, upon sixty (60) days advance written notice. The Company shall have the option, in its sole discretion, to make Employee's
termination effective at any time prior to the end of such notice period as long as the Company provides Employee with all compensation
to which he is entitled up through the last day of the sixty (60) day notice period. Thereafter, all obligations of the Company
under this Agreement shall cease, except as provided in Section 6.E and Section 3.1.

 

5.F.
By Death: Employee's employment shall terminate automatically upon his death. The Company shall pay to Employee's beneficiaries
or estate, as appropriate, any compensation then due and owing through the date of death. Thereafter, all obligations of the Company
under this Agreement shall cease, except as provided in Section 6.E and Section 3.1. Nothing in this Section shall affect any
entitlement of Employee's heirs to the benefits of any life insurance plan or other applicable benefits.

 

6.Additional
Termination Obligations

 

6.A.
Employee agrees that all property, including, without limitation, all equipment, tangible proprietary information, documents,
records, notes, contracts, and computer-generated materials provided-to or prepared by Employee incident to his or her employment
belong to the Company and shall be promptly returned to the Company upon termination of Employee's employment.

 

6.B.
Upon termination of Employee's employment, Employee shall be deemed to have resigned from all offices and directorships then
held with the Company. Following any termination of employment, Employee shall cooperate with the Company in the winding up
or transferring to other employees of any pending work and shall also cooperate with the Company in the defense of any action
brought by any third party against the Company that relates to Employee's employment by the Company.

 

    	Executive Employment Agreement - Herb Reichlin	Page 5

    	 

    

 

6.C.
Employee agrees that following termination of his or her employment, Employee shall not access or use any of the Company's
computer systems, e-mail systems, voicemail systems, intranet system or other system, except as authorized by the Company in
writing.

 

6.D.
Intentionally Omitted.

 

6.E.Upon
any termination of Employee's employment with the Company, including as a result of the expiration of the Term, Employee shall
be entitled to all benefits as provided in applicable Company benefit plans, any salary earned through the date of such termination,
and reimbursement of all expenses incurred through the date of termination in accordance with the Company's policies.

 

7.Inventions
and Proprietary Information; Nonsolicitation

 

7.A.
Employee acknowledges that because of his/her position in the Company, Employee will have access to intellectual property
and confidential information. During the term of his employment (plus any period in which the Company is paying the Employee
Severance) and for one (1) year thereafter, Employee shall not, for Employee or any third party, directly or indirectly, (i)
interfere with any business of any kind in which the Company (or any affiliate) is engaged, including, without limitation, by
conducting business with, diverting or attempting to divert any of its suppliers or customers, or (ii) solicit, induce,
recruit, hire or encourage any person employed by the Company during the preceding six months to leave their employment with
the Company. If Employee voluntarily leaves his employment with the Company during the term of the employment, Employee
agrees not to take any job or position or engage in any activity or business in direct competition with the business
activities of the Company as of the last day of Employee's services for the Company. This agreement not to compete with the
Company shall be for a period of two (2) years following Employee's voluntary separation from the Company and shall apply to
any business activities throughout the United States.

 

8.If
anyone or more provisions of this Section 6 shall for any reason be held invalid or unenforceable, it is the specific intent of
the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

 

9.Dispute
Resolution

 

10.The
parties agree that any dispute between Employee (and his or her attorneys, successors, and assigns) and the Company (and its
affiliates, shareholders, directors, officers, employees, members, agents, successors, attorneys, and assigns) relating in
any manner whatsoever to Employee's employment or termination of employment shall be submitted to mandatory arbitration
before a tribunal of the American Arbitration Association and of the rules promulgated there under, such arbitration to be
before a single arbitrator. The arbitration shall be commenced only in the City and State of New York.

 

    	Executive Employment Agreement - Herb Reichlin	Page 6

    	 

    

 

11.Employee
acknowledges that he is obligated under this Agreement to render services of a special, unique, unusual, extraordinary and intellectual
character, thereby giving this Agreement peculiar value so that the loss thereof cannot be reasonably or adequately compensated
in damages in an action at law. Accordingly, in addition to other remedies provided by law, the Company shall have the right to
injunctive relief for any actual or threatened violation of Section 6 of this Agreement in addition to any other remedies it may
have.

 

12.Entire
Agreement: This Agreement is intended to be the final, complete, and exclusive statement of the terms of Employee's employment
by the Company and may not be contradicted by evidence of any prior or contemporaneous statements or agreements, except for agreements
specifically referenced herein (including the Company's Proprietary Information and Inventions Agreement, attached as Exhibit
A, and any agreements related to the stock currently held by Employee).

 

13.Amendments;
Waivers: This Agreement may not be amended except by a writing signed by Employee and by a duly authorized representative of the
Company other than Employee. Delay or failure of either party to exercise any right under this Agreement shall not constitute
a waiver of such right by such party.

 

14.Assignment:
Employee agrees that Employee will not assign any rights or obligations under this Agreement. Nothing in this Agreement shall
prevent the consolidation, merger or sale of the Company or a sale of all or substantially all of its assets.

 

15.Severability:
If any provision of this Agreement shall be held by a court or arbitrator to be invalid, unenforceable, or void, such provision
shall be enforced to fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect.
In the event that the time period or scope of any provision is declared by a court or arbitrator of competent jurisdiction to
exceed the maximum time period or scope that such court or arbitrator deems enforceable, then such court or arbitrator shall reduce
the time period or scope to the maximum time period or scope permitted by law.

 

16.
Taxes: All amounts paid under this Agreement (including, without limitation, Base Salary, Signing Bonus and Severance) shall
be paid less all applicable state and federal tax withholdings.

 

17.
Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of New
York.

 

    	Executive Employment Agreement - Herb Reichlin	Page 7

    	 

    

 

18.Interpretation:
This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. Captions
are used for reference purposes only and should be ignored in the interpretation of the Agreement.

 

19.Binding
Agreement Each party represents and warrants to the other that the person(s) signing this Agreement below has authority to bind
the party to this Agreement and that this Agreement will legally bind both the Company and Employee. This Agreement will be binding
upon and benefit the parties and their heirs, administrators, executors, successors and permitted assigns. To the extent that
the practices, policies, or procedures of the Company, now or in the future, are inconsistent with the terms of this Agreement,
the provisions of this Agreement shall control. Any subsequent change in Employee's duties or compensation will not affect the
validity or scope of the remainder of this Agreement.

 

20.Employee
Acknowledgment: Employee acknowledges Employee has had the opportunity to consult legal counsel concerning this Agreement, that
Employee has read and understands the Agreement, that Employee is fully aware of its legal effect, and that Employee has entered
into it freely based on his own judgment and not on any representations or promises other than those contained in this Agreement.

 

21.Date
of Agreement: The parties have duly executed this Agreement as of the date first written above.

 

IN
WITNESS WHEREOF the undersigned have executed this Agreement as of the day and year first written above. The parties hereto agree
that facsimile signatures shall be as effective as if originals.

 

	Quest Patent Research Corporation	 	Herb
    Reichlin
	 	 	 	 	 
	By:	/s/ Burton
    Goldstein	 	By:	/s/
    Herb Reichlin
	 	 	 	 	 
	  Its: Chairman of the Board	 	 	 

 

 

	Executive
Employment Agreement - Herb Reichlin	Page 8

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