Document:

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (the “Agreement”) is entered into as of the 5th day of December, 2013 (the “Effective
Date”), by and between Virtus Oil and Gas Corp., a Nevada corporation (the “Company”), and Daniel
M. Ferris (“Ferris”).

 

WHEREAS,
the Company desires to employ Ferris, and Ferris desires to be employed by the Company, upon the terms and conditions set forth
in this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.
Employment/Duties. Ferris shall serve the Company as President and Chief Executive Officer with the authority, duties
and responsibilities customarily incident to the offices of President and Chief Executive Officer as governed and limited by the
Company’s Articles of Incorporation and Bylaws. Ferris shall perform such other executive services commensurate with his
position, as may from time to time be assigned to Ferris by the Company’s Board of Directors. Ferris may also serve as Secretary,
Treasurer or as any other officer as appointed by the Board of Directors.

 

2.
Term of Agreement. This Agreement shall be in effect for three (3) years from the Effective Date and shall automatically
renew for consecutive one-year periods until it is terminated under the terms of paragraph 6 of this Agreement. The initial three-year
period and any renewal periods shall be referred to herein as the “Term”.

 

3.
Ferris’ Responsibilities. Ferris agrees that during the Term he will devote his full business time and best
efforts and abilities to the performance of his duties for the Company. It is anticipated that Ferris may, during the Term, be
involved in other business activities. However, Ferris shall perform executive services for the Company as is consistent with
his title and shall devote such time, attention and energies to the business of the Company as may be mutually agreed upon between
Ferris and the Board of Directors.

 

4.
No Limitations. Ferris represents and warrants to the Company that he is under no contractual, judicial or other
restraint that impairs his right or legal ability to enter into this Agreement and to carry out his duties and responsibilities
for the Company.

 

5. Compensation
and Benefits.

 

(a)
Base Salary. During the Term, the Company will pay to Ferris a base salary of US$120,000 per year, pro rated for any partial
year. The base salary will be subject to all applicable legal deductions and withholdings. The base salary will be paid on regularly
scheduled paydays determined by the Company.

 

 

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(b)
Vacation. Ferris shall be entitled to four (4) weeks of paid vacation per each 12-month period during the Term.

 

(c)
Award of Restricted Stock. Ferris shall be entitled to receive one million five hundred thousand (1,500,000) shares of
the Common Stock, $0.001 par value, of the Company (the “Common Stock”) during the Term. Five hundred thousand
(500,000) shares of Common Stock shall vest on each one-year anniversary of the Effective Date, commencing in 2014 and shall be
fully vested on the third anniversary of the Effective Date in 2016. Ferris acknowledges and agrees that the Common Stock will
not be registered under the Securities Act of 1933, as amended, and will carry a restrictive legend to the effect that the shares
of Common Stock may not be transferred absent such registration or pursuant to an exemption from registration. On each one-year
anniversary of the Effective Date for three years, the Company will deliver to Ferris a stock certificate representing 500,000
shares of Common Stock that have vested as of such date. Ferris agrees to execute and deliver such other documentation requested
by the Company, including but not limited to a Subscription Agreement, necessary or desirable in connection with the issuance
of the Common Stock.

 

(d)
Reimbursement of Expenses. During the Term, the Company will pay or reimburse Ferris for all reasonable travel, cellular
telephone and other expenses incurred by Ferris in performing his obligations under this Agreement in accordance with the policies
and procedures of the Company, provided that Ferris properly accounts for such expenses in accordance with the regular policies
of the Company.

 

(e) Other Benefits. The Company will provide Ferris with such other employee benefits that the Company provides
to its full-time executive employees.

 

6. Termination
of Agreement.

 

(a)
Death or Disability. This Agreement will automatically terminate upon the death of Ferris or upon Ferris’ becoming
disabled to the extent that he cannot perform the essential functions of his position as determined in good faith by a physician
reasonably acceptable to the Company. If Ferris’ employment is terminated under this paragraph 6(a), the Company will pay
to Ferris (or his estate) the full amount of his compensation through the date of termination.

 

(b)
Voluntary Termination by Ferris. Ferris may voluntarily terminate his employment by providing the Company with ninety (90)
days prior written notice. Upon receipt of said notice, the Company may, in its sole discretion, relieve Ferris of his duties,
but shall pay Ferris’ base salary for the remaining portion of the notice period.

 

(c)
Voluntary Termination by Company. The Company may terminate this Agreement by providing Ferris at least ninety (90) days
written notice of termination. Upon receipt of said notice by Ferris, the parties shall meet and in good faith confer regarding
Ferris’ work responsibilities during the notice period. During the notice period Ferris agrees to use his best efforts to
continue his work for the Company, and the Company agrees to continue compensating Ferris until his termination date with his
same pay and benefits as before the notice was provided.

 

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(d)
For Cause. The Company may terminate this Agreement immediately without any prior written notice to Ferris if the termination
is "for cause." For purposes of this Agreement, "for cause" shall be defined as the willful and continued
failure by Ferris to perform his duties, conviction of a felony, or any other material conduct that is contrary to the best interests
of the Company or adversely affects the reputation of the Company. In the event that this Agreement is terminated pursuant to
this paragraph 6(d), the Company shall pay to Ferris only that compensation which is due to him through the date of his termination.

 

(e)
Expiration of Term. Either party may terminate this Agreement by giving the other party at least thirty (30) days written
notice of termination prior to the expiration of the initial Term or any one-year renewal thereof.

 

(f) Payment upon Termination.
If Ferris’ employment is terminated for any reason, the Company shall pay to Ferris his base salary and other benefits accrued
through the date of his termination. If Ferris’ employment is terminated for reasons other than "for cause" as
defined in paragraph 6(d) or other than Ferris’ voluntary resignation, the Company shall deliver to Ferris the full amount
of Common Stock to which he is entitled pursuant to paragraph 5(c), according to the vesting schedule set forth therein. If Ferris’
employment is terminated "for cause", or if Ferris voluntarily resigns, then he shall not be entitled to receive any
shares of Common Stock which have not yet vested pursuant to paragraph 5(c).

 

7.
Choice of Law. The parties agree that this Agreement shall be governed by and construed under the laws of the State
of Nevada.

 

8.
Severability. If any provision of this Agreement is declared or found to be illegal, unenforceable, or void, in
whole or in part, then both parties will be relieved of all obligations arising under such provision, but only to the extent it
is illegal, unenforceable, or void. The parties intend that this Agreement will be deemed amended by modifying any such illegal,
unenforceable, or void provision to the extent necessary to make it legal and enforceable while preserving its intent, or if such
is not possible, by substituting therefor another provision that is legal and enforceable and achieves the same objectives. Notwithstanding
the foregoing, if the remainder of this Agreement will not be affected by such declaration or finding and is capable of substantial
performance, then each provision not so affected will be enforced to the extent permitted by law.

 

9.
Waiver. No delay or omission by either party to this Agreement to exercise any right or power under this Agreement
will impair such right or power or be construed as a waiver thereof. A waiver by either of the parties to this Agreement of any
of the covenants to be performed by the other or any breach thereof will not be construed to be a waiver of any succeeding breach
thereof or of any other covenant contained in this Agreement. All remedies provided for in this Agreement will be cumulative and
in addition to and not in lieu of any other remedies available to either party at law, in equity or otherwise.

 

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10.
Notices. Any notices, consents, demands, requests, approvals and other communications to be given under this Agreement
by either party to the other shall be deemed to have been duly given when given in writing and personally delivered, or upon receipt
if sent by mail (registered or certified) or by a recognized "next-day delivery service" to the address set forth below
a party's signature.

 

11.
Entire Agreement. This Agreement represents the entire agreement relating to employment between the Company and
Ferris. No prior or subsequent promises, representation, or understandings relative to any terms or conditions of employment are
to be considered as part of this Agreement or as binding unless expressed in writing signed by the parties.

 

12.
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company, provided that the
rights and obligations of Ferris under this Agreement shall not be assignable.

 

13.
Amendment. This Agreement may be amended only in a writing signed by both parties.

 

14.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which, when taken together, shall constitute one in the same instrument.

 

15. Acknowledgment. By signing
below, the parties certify and represent that they have carefully read and considered the foregoing Agreement and fully understand
all provisions of this Agreement and understand the consequences of signing this Agreement, and have signed this Agreement voluntarily
and without coercion, undue influence, threats, or intimidations of any kind or type whatsoever.

 

 

(Signature Page Follows)

 

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

 

 

	COMPANY:	 	VIRTUS OIL AND GAS CORP.
	 	 	 
	 	 	 
	 	 	By: /s/ Steven M. Plumb                               
	 	 	Name: Steven M. Plumb
	 	 	Title: Chief Financial Officer
	 	 	 
	 	 	Address: The Gas Tower
	 	 	555 West 5th Street
	 	 	31st Floor
	 	 	Los Angeles, CA 90013
	 	 	 
	 	 	 
	FERRIS:	 	/s/ Daniel M. Ferris                                  
	 	 	Name: Daniel M. Ferris
	 	 	 
	 	 	Address: 311 N. Robertson Boulevard
	 	 	Apt. #703
	 	 	Beverly Hills, CA 90211

 

    	5Exhibit 10.1

Exhibit 10.1

Execution Version

Amendment NO. 2
to 
Loan AND SECURITY agreement

This Amendment No. 2 to Loan and Security Agreement (this “Amendment”) is entered into this fourth day of December, 2013 (the “Second Amendment Effective Date”) by and between Pixelworks, Inc., an Oregon corporation (“Borrower”), and Silicon Valley Bank (“Bank”).  Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).
Recitals
A.    Borrower and Bank have entered into that certain Loan and Security Agreement dated as of December 21, 2010 (as amended, restated, modified and/or supplemented from time to time, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Bank amend the Loan Agreement to extend the maturity date and make certain other revisions to the Loan Agreement as more fully set forth herein.
D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
Agreement
Now, Therefore, in consideration of the foregoing Recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Amendments to Loan Agreement.

1.1     Section 13.1 (Definitions).  Each of the following definitions is hereby: (a) to the extent already defined in Section 13.1 of the Loan Agreement, amended and restated in its entirety as follows, and (b) to the extent not already defined in Section 13.1 of the Loan Agreement, added to Section 13.1 of the Loan Agreement, in its appropriate alphabetical order, as follows: 

““Revolving Line Maturity Date” is January 1, 2016.”

““Second Amendment Effective Date” is December 4, 2013.”

2.Limitation of Amendments.   The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a forbearance, waiver or modification of any other term or condition of the Loan Documents or of any other instrument or agreement referred to therein; (b) to prejudice any right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; (c) to be a consent to any future amendment or modification, forbearance or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof; or (d) to limit or impair Bank’s right to demand strict performance of all terms and covenants as of any date.  Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect.

3.Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

3.1    Immediately upon giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

3.2    Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

3.3    The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

3.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 

3.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 

3.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made or except for any filing, recording, or registration required by the Securities Exchange Act of 1934; and

2

3.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

4.Integration.  This Amendment and the other Loan Documents represent the entire agreement about this subject matter and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial, reference or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by Bank with respect to Borrower shall remain in full force and effect.

5.Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  All counterparts shall be deemed an original of this Amendment.  Any signature delivered by a party by facsimile transmission or by electronic transmission of a PDF file shall be deemed to be an original signature hereto.

6.Loan Document.  This Amendment is a Loan Document.

7.Effectiveness.  This Amendment shall become effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment of all Bank Expenses (including all reasonable attorney’s fees and reasonable expenses) incurred and invoiced as of the date hereof and (c) payment by Borrower of a fully earned, non-refundable commitment fee equal to one hundred twenty five thousandths of one percent (0.125%) of the Revolving Line prorated for the remainder of the term of the Revolving Line facility on the Second Amendment Effective Date.

8.Choice of Law, Venue, Jury Trial Waiver, and Judicial Reference.  THIS AMENDMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING CHOICE OF LAW, VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE SET FORTH IN SECTION 11 OF THE LOAN AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS.

[Signature Page Follows.]

3

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

	
		
	BORROWER

	PIXELWORKS, INC.,

	an Oregon Corporation

	By
	/s/ Steven L. Moore

	Name:
	Steven L. Moore

	Title:
	VP & CFO

[Signature Page to Amendment No. 2 to Loan and Security Agreement]

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

	
		
	BANK:

	SILICON VALLEY BANK

	By
	/s/ Gregory Peterson

	Name:
	Gregory Peterson

	Title:
	Vice President

[Signature Page to Amendment No. 2 to Loan and Security Agreement]

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