Document:

Exhibit
10.2

 

EXHIBIT
B

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of May 28, 2020 (this “Agreement”), is among Recruiter.com Group, Inc., a Nevada
corporation (the “Company”), all of the Subsidiaries of the Company (such subsidiaries, the “Guarantors”
and together with the Company, the “Debtors”) and the holders of the Company’s 12.5% Senior Subordinated
Secured Original Issue Discount Convertible Debentures due May 28, 2021 unless extended pursuant to the terms therein, in the
original aggregate principal amount of $450,000 (collectively, the “Debentures”) signatory hereto, their endorsees,
transferees and assigns (collectively, the “Secured Parties”).

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to the Purchase Agreement (as defined in the Debentures), the Secured Parties have severally agreed to extend the loans
to the Company evidenced by the Debentures;

 

WHEREAS,
pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the “Guarantee”), the Guarantors have
jointly and severally agreed to guarantee and act as surety for payment of such Debentures; and

 

WHEREAS,
in order to induce the Secured Parties to extend the loans evidenced by the Debentures, each Debtor has agreed to execute and
deliver to the Secured Parties this Agreement and to grant the Secured Parties, pari passu with each other Secured Party
and through the Agent (as defined in Section 18 hereof), a security interest in certain property of such Debtor to secure the
prompt payment, performance and discharge in full of all of the Company’s obligations under the Debentures and the Guarantors’
obligations under the Guarantee.

 

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

 

1.
Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.
Terms used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”,
“chattel paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”,
“investment property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”)
shall have the respective meanings given such terms in Article 9 of the UCC.

 

(a)
“Collateral” means the collateral in which the Secured Parties are granted a security interest by this Agreement
and which shall include the following personal property of the Debtors, whether presently owned or existing or hereafter acquired
or coming into existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof,
and all proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the
Collateral and of insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash,
notes, securities, equity interest or other property at any time and from time to time acquired, receivable or otherwise distributed
in respect of, or in exchange for, any or all of the Pledged Securities (as defined below):

 

     

     

    

 

(i)
All goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships,
appliances, furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind
and nature and wherever situated, together with all documents of title and documents representing the same, all additions and
accessions thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items
used and useful in connection with any Debtor’s businesses and all improvements thereto; and (B) all inventory;

 

(ii)
All contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests,
stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities, licenses,
distribution and other agreements, computer software (whether “off-the-shelf”, licensed from any third party or developed
by any Debtor), computer software development rights, leases, franchises, customer lists, quality control procedures, grants and
rights, goodwill, Intellectual Property and income tax refunds;

 

(iii)
All accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties
with respect to each account, including any right of stoppage in transit;

 

(iv)
All documents, letter-of-credit rights, instruments and chattel paper;

 

(v)
All commercial tort claims;

 

(vi)
All deposit accounts and all cash (whether or not deposited in such deposit accounts);

 

(vii)
All investment property;

 

(viii)
All supporting obligations; and

 

(ix)
All files, records, books of account, business papers, and computer programs; and

 

(x)
the products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above.

 

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Without
limiting the generality of the foregoing, the “Collateral” shall include all investment property and general
intangibles respecting ownership and/or other equity interests in each Guarantor, including, without limitation, the shares of
capital stock and the other equity interests listed on Schedule H hereto (as the same may be modified from time to time
pursuant to the terms hereof), and any other shares of capital stock and/or other equity interests of any other direct or indirect
subsidiary of any Debtor obtained in the future, and, in each case, all certificates representing such shares and/or equity interests
and, in each case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received,
receivable or distributed in respect of, or exchanged for, any of the foregoing and all rights arising under or in connection
with the Pledged Securities, including, but not limited to, all dividends, interest and cash.

 

Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the
extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable
law); provided, however, that to the extent permitted by applicable law, this Agreement shall create a valid security
interest in such asset and, to the extent permitted by applicable law, this Agreement shall create a valid security interest in
the proceeds of such asset.

 

(b)
“Intellectual Property” means the collective reference to all rights, priorities and privileges relating to
intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation,
(i) all copyrights arising under the laws of the United States, any other country or any political subdivision thereof, whether
registered or unregistered and whether published or unpublished, all registrations and recordings thereof, and all applications
in connection therewith, including, without limitation, all registrations, recordings and applications in the United States Copyright
Office, (ii) all letters patent of the United States, any other country or any political subdivision thereof, all reissues and
extensions thereof, and all applications for letters patent of the United States or any other country and all divisions, continuations
and continuations-in-part thereof, (iii) all trademarks, trade names, corporate names, company names, business names, fictitious
business names, trade dress, service marks, logos, domain names and other source or business identifiers, and all goodwill associated
therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto,
(iv) all trade secrets arising under the laws of the United States, any other country or any political subdivision thereof, (v)
all rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii)
all causes of action for infringement of the foregoing.

 

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(c)
“Majority in Interest” means, at any time of determination, the majority in interest (based on then-outstanding
principal amounts of Debentures at the time of such determination) of the Secured Parties.

 

(d)
“Necessary Endorsement” means undated stock powers endorsed in blank or other proper instruments of assignment
duly executed and such other instruments or documents as the Agent (as that term is defined below) may reasonably request.

 

(e)
“Obligations” means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint
or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of any Debtor to the
Secured Parties, including, without limitation, all obligations under this Agreement, the Debentures, the Guarantee and any other
instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether
now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether
or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or
incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment
is avoided or recovered directly or indirectly from any of the Secured Parties as a preference, fraudulent transfer or otherwise
as such obligations may be amended, supplemented, converted, extended or modified from time to time. Without limiting the generality
of the foregoing, the term “Obligations” shall include, without limitation: (i) principal of, and interest on the
Debentures and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities
of the Debtors from time to time under or in connection with this Agreement, the Debentures, the Guarantee and any other instruments,
agreements or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including
but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations
to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding
involving any Debtor.

 

(f)
“Organizational Documents” means with respect to any Debtor, the documents by which such Debtor was organized
(such as a certificate of incorporation, certificate of limited partnership or articles of organization, and including, without
limitation, any certificates of designation for preferred stock or other forms of preferred equity) and which relate to the internal
governance of such Debtor (such as bylaws, a partnership agreement or an operating, limited liability or members agreement).

 

(g)
“Pledged Interests” shall have the meaning ascribed to such term in Section 4(j).

 

(h)
“Pledged Securities” shall have the meaning ascribed to such term in Section 4(i).

 

(i)
“UCC” means the Uniform Commercial Code of the State of New York and or any other applicable law of any state
or states which has jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time.
It is the intent of the parties that defined terms in the UCC should be construed in their broadest sense so that the term “Collateral”
will be construed in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that
broaden the definitions, they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions,
the existing ones shall be controlling.

 

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2.
Grant of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by
the Debentures and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of
the Obligations, each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Secured Parties a
security interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of whatsoever
kind and nature in and to, the Collateral (a “Security Interest” and, collectively, the “Security
Interests”).

 

3.
Delivery of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, each Debtor shall deliver
or cause to be delivered to the Agent (a) any and all certificates and other instruments representing or evidencing the Pledged
Securities, and (b) any and all certificates and other instruments or documents representing any of the other Collateral, in each
case, together with all Necessary Endorsements. The Debtors are, contemporaneously with the execution hereof, delivering to Agent,
or have previously delivered to Agent, a true and correct copy of each Organizational Document governing any of the Pledged Securities.

 

4.
Representations, Warranties, Covenants and Agreements of the Debtors. Except as set forth under the corresponding section
of the disclosure schedules delivered to the Secured Parties concurrently herewith (the “Disclosure Schedules”),
which Disclosure Schedules shall be deemed a part hereof, each Debtor represents and warrants to, and covenants and agrees with,
the Secured Parties as follows:

 

(a)
Each Debtor has the requisite corporate, partnership, limited liability company or other power and authority to enter into this
Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by each Debtor of this
Agreement and the filings contemplated therein have been duly authorized by all necessary action on the part of such Debtor and
no further action is required by such Debtor. This Agreement has been duly executed by each Debtor. This Agreement constitutes
the legal, valid and binding obligation of each Debtor, enforceable against each Debtor in accordance with its terms except as
such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws of general application
relating to or affecting the rights and remedies of creditors and by general principles of equity.

 

(b)
The Debtors have no place of business or offices where their respective books of account and records are kept (other than temporarily
at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule
A attached hereto. Except as specifically set forth on Schedule A, each Debtor is the record owner of the real property
where such Collateral is located, and there exist no mortgages or other liens on any such real property except for Permitted Liens
(as defined in the Debentures). Except as disclosed on Schedule A, none of such Collateral is in the possession of any
consignee, bailee, warehouseman, agent or processor.

 

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(c)
Except for Permitted Liens (as defined in the Debentures) and except as set forth on Schedule B attached hereto, the Debtors
are the sole owner of the Collateral (except for non-exclusive licenses granted by any Debtor in the ordinary course of business),
free and clear of any liens, security interests, encumbrances, rights or claims, and are fully authorized to grant the Security
Interests. Except as set forth on Schedule C attached hereto, there is not on file in any governmental or regulatory authority,
agency or recording office an effective financing statement, security agreement, license or transfer or any notice of any of the
foregoing (other than those that will be filed in favor of the Secured Parties pursuant to this Agreement) covering or affecting
any of the Collateral. Except as set forth on Schedule C attached hereto and except pursuant to this Agreement, as long
as this Agreement shall be in effect, the Debtors shall not execute and shall not knowingly permit to be on file in any such office
or agency any other financing statement or other document or instrument (except to the extent filed or recorded in favor of the
Secured Parties pursuant to the terms of this Agreement).

 

(d)
No written claim has been received that any Collateral or any Debtor's use of any Collateral violates the rights of any third
party. There has been no adverse decision to any Debtor's claim of ownership rights in or exclusive rights to use the Collateral
in any jurisdiction or to any Debtor's right to keep and maintain such Collateral in full force and effect, and there is no proceeding
involving said rights pending or, to the best knowledge of any Debtor, threatened before any court, judicial body, administrative
or regulatory agency, arbitrator or other governmental authority.

 

(e)
Each Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of
business and its Collateral at the locations set forth on Schedule A attached hereto and may not relocate such books of
account and records or tangible Collateral unless it delivers to the Secured Parties at least 30 days prior to such relocation
(i) written notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence
that appropriate financing statements under the UCC and other necessary documents have been filed and recorded and other steps
have been taken to perfect the Security Interests to create in favor of the Secured Parties a valid, perfected and continuing
perfected lien in the Collateral.

 

(f)
This Agreement creates in favor of the Secured Parties a valid security interest in the Collateral, subject only to Permitted
Liens (as defined in the Debentures) securing the payment and performance of the Obligations. Upon making the filings described
in the immediately following paragraph, all security interests created hereunder in any Collateral which may be perfected by filing
UCC financing statements shall have been duly perfected. Except for the filing of the UCC financing statements referred to in
the immediately following paragraph, the recordation of the Intellectual Property Security Agreement (as defined in Section 4(p)
hereof) with respect to copyrights and copyright applications in the United States Copyright Office referred to in paragraph (m),
the execution and delivery of deposit account control agreements satisfying the requirements of Section 9-104(a)(2) of the UCC
with respect to each deposit account of the Debtors, and the delivery of the certificates and other instruments provided in Section
3, no action is necessary to create, perfect or protect the security interests created hereunder. Without limiting the generality
of the foregoing, except for the filing of said financing statements, the recordation of said Intellectual Property Security Agreement,
and the execution and delivery of said deposit account control agreements, no consent of any third parties and no authorization,
approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for (i)
the execution, delivery and performance of this Agreement, (ii) the creation or perfection of the Security Interests created hereunder
in the Collateral or (iii) the enforcement of the rights of the Agent and the Secured Parties hereunder.

 

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(g)
Each Debtor hereby authorizes the Agent to file one or more financing statements under the UCC, with respect to the Security Interests,
with the proper filing and recording agencies in any jurisdiction deemed proper by it.

 

(h)
The execution, delivery and performance of this Agreement by the Debtors does not (i) violate any of the provisions of any Organizational
Documents of any Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable
law, rule or regulation applicable to any Debtor or (ii) except as set forth on Schedule B, conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing any Debtor's debt or otherwise) or other understanding to which any Debtor is a
party or by which any property or asset of any Debtor is bound or affected. If any, all required consents (including, without
limitation, from stockholders or creditors of any Debtor) necessary for any Debtor to enter into and perform its obligations hereunder
have been obtained.

 

(i)
The capital stock and other equity interests listed on Schedule H hereto (the “Pledged Securities”)
represent all of the capital stock and other equity interests of the Guarantors, and represent all capital stock and other equity
interests owned, directly or indirectly, by the Company. All of the Pledged Securities are validly issued, fully paid and nonassessable,
and the Company is the legal and beneficial owner of the Pledged Securities, free and clear of any lien, security interest or
other encumbrance except for the security interests created by this Agreement and other Permitted Liens (as defined in the Debentures).

 

(j)
The ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the
“Pledged Interests”) by their express terms do not provide that they are securities governed by Article 8 of
the UCC and are not held in a securities account or by any financial intermediary.

 

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(k)
Except for Permitted Liens (as defined in the Debentures), each Debtor shall at all times maintain the liens and Security Interests
provided for hereunder as valid and perfected first priority liens and security interests in the Collateral in favor of the Secured
Parties until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14 hereof. Each Debtor
hereby agrees to defend the same against the claims of any and all persons and entities. Each Debtor shall safeguard and protect
all Collateral for the account of the Secured Parties. At the request of the Agent, each Debtor will sign and deliver to the Agent
on behalf of the Secured Parties at any time or from time to time one or more financing statements pursuant to the UCC in form
reasonably satisfactory to the Agent and will pay the cost of filing the same in all public offices wherever filing is, or is
deemed by the Agent to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the
generality of the foregoing, each Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and
the Security Interests hereunder, and each Debtor shall obtain and furnish to the Agent from time to time, upon demand, such releases
and/or subordinations of claims and liens which may be required to maintain the priority of the Security Interests hereunder.

 

(l)
Except as set forth on Schedule B, no Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose
of any of the Collateral (except for non-exclusive licenses granted by a Debtor in its ordinary course of business and sales of
inventory by a Debtor in its ordinary course of business) without the prior written consent of a Majority in Interest.

 

(m)
Each Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order
and shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

(n)
Each Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including
Collateral hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities
of established reputation having similar properties similarly situated and in such amounts as are customarily carried under similar
circumstances by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient
to cover the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide,
and the insurer issuing such policy to certify to the Agent, that (a) the Agent will be named as lender loss payee and additional
insured under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason
whatsoever, such insurer will promptly notify the Agent and such cancellation or change shall not be effective as to the Agent
for at least thirty (30) days after receipt by the Agent of such notice, unless the effect of such change is to extend or increase
coverage under the policy; and (c) the Agent will have the right (but no obligation) at its election to remedy any default in
the payment of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default (as defined
in the Debentures) exists and if the proceeds arising out of any claim or series of related claims do not exceed $100,000, loss
payments in each instance will be applied by the applicable Debtor to the repair and/or replacement of property with respect to
which the loss was incurred to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the
extent not so applied, shall be payable to the applicable Debtor; provided, however, that payments received by any
Debtor after an Event of Default occurs and is continuing or in excess of $100,000 for any occurrence or series of related occurrences
shall be paid to the Agent on behalf of the Secured Parties and, if received by such Debtor, shall be held in trust for the Secured
Parties and immediately paid over to the Agent unless otherwise directed in writing by the Agent. Copies of such policies or the
related certificates, in each case, naming the Agent as lender loss payee and additional insured shall be delivered to the Agent
at least annually and at the time any new policy of insurance is issued.

 

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(o)
Each Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Parties promptly, in sufficient detail,
of any material adverse change in the Collateral, and of the occurrence of any event which would have a material adverse effect
on the value of the Collateral or on the Secured Parties’ security interest, through the Agent, therein.

 

(p)
Each Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take such further action as the Agent may from time
to time request and may in its sole discretion deem necessary to perfect, protect or enforce the Secured Parties’ security
interest in the Collateral including, without limitation, if applicable, the execution and delivery of a separate security agreement
with respect to each Debtor’s Intellectual Property (“Intellectual Property Security Agreement”) in which
the Secured Parties have been granted a security interest hereunder, substantially in a form reasonably acceptable to the Agent,
which Intellectual Property Security Agreement, other than as stated therein, shall be subject to all of the terms and conditions
hereof.

 

(q)
Each Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and
upon reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the
Agent from time to time.

 

(r)
Each Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights,
claims, causes of action and accounts receivable in respect of the Collateral.

 

(s)
Each Debtor shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment,
execution or other legal process levied against any Collateral and of any other information received by such Debtor that may materially
affect the value of the Collateral, the Security Interest or the rights and remedies of the Secured Parties hereunder.

 

(t)
All information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of any Debtor with respect to
the Collateral is accurate and complete in all material respects as of the date furnished.

 

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(u)
The Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and
any rights and franchises material to its business.

 

(v)
Except in connection with the change by the Company of its state of incorporation from Delaware to Nevada, including by means
of a merger, conversion, or otherwise as permitted by the applicable law, no Debtor will change its name, type of organization,
jurisdiction of organization, organizational identification number (if it has one), legal or corporate structure, or identity,
or add any new fictitious name unless it provides at least 30 days prior written notice to the Secured Parties of such change
and, at the time of such written notification, such Debtor provides any financing statements or fixture filings necessary to perfect
and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(w)
Except in the ordinary course of business, no Debtor may consign any of its inventory or sell any of its inventory on bill and
hold, sale or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be
unreasonably withheld.

 

(x)
No Debtor may relocate its chief executive office to a new location without providing 30 days prior written notification thereof
to the Secured Parties and so long as, at the time of such written notification, such Debtor provides any financing statements
or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(y)
Each Debtor was organized and remains organized solely under the laws of the state set forth next to such Debtor’s name
in Schedule D attached hereto, which Schedule D sets forth each Debtor’s organizational identification number
or, if any Debtor does not have one, states that one does not exist.

 

(z)
(i) The actual name of each Debtor is the name set forth in Schedule D attached hereto; (ii) no Debtor has any trade names
except as set forth on Schedule E attached hereto; (iii) no Debtor has used any name other than that stated in the preamble
hereto or as set forth on Schedule E for the preceding five years; and (iv) no entity has merged into any Debtor or been
acquired by any Debtor within the past five years except as set forth on Schedule E.

 

(aa)
At any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the security interest created hereby, the applicable Debtor shall deliver
such Collateral to the Agent.

 

(bb)
Each Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Agent regarding the
Pledged Interests consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section
8-106 (or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement (or
one that would confer “control” within the meaning of Article 8 of the UCC) with any other person or entity.

 

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(cc)
Each Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent, or, if such delivery
is not possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest
created by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the applicable Debtor shall
cause the underlying chattel paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section
thereto).

 

(dd)
If there is any investment property or deposit account included as Collateral that can be perfected by “control” through
an account control agreement, the applicable Debtor shall cause such an account control agreement, in form and substance in each
case satisfactory to the Agent, to be entered into and delivered to the Agent for the benefit of the Secured Parties.

 

(ee)
To the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying
letter of credit to consent to an assignment of the proceeds thereof to the Secured Parties.

 

(ff)
To the extent that any Collateral is in the possession of any third party, the applicable Debtor shall join with the Agent in
notifying such third party of the Secured Parties’ security interest in such Collateral and shall use its best efforts to
obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably
satisfactory to the Agent.

 

(gg)
If any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly notify the Secured Parties
in a writing signed by such Debtor of the particulars thereof and grant to the Secured Parties in such writing a security interest
therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory
to the Agent.

 

(hh)
Each Debtor shall immediately provide written notice to the Secured Parties of any and all accounts which arise out of contracts
with any governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests
in such accounts and proceeds thereof, shall execute and deliver to the Agent an assignment of claims for such accounts and cooperate
with the Agent in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar
federal, state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts
and proceeds thereof.

 

(ii)
Each Debtor shall cause each subsidiary of such Debtor to immediately become a party hereto (an “Additional Debtor”),
by executing and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply
with the provisions hereof applicable to the Debtors. Concurrent therewith, the Additional Debtor shall deliver replacement schedules
for, or supplements to all other Schedules to (or referred to in) this Agreement, as applicable, which replacement schedules shall
supersede, or supplements shall modify, the Schedules then in effect. The Additional Debtor shall also deliver such opinions of
counsel, authorizing resolutions, good standing certificates, incumbency certificates, organizational documents, financing statements
and other information and documentation as the Agent may reasonably request. Upon delivery of the foregoing to the Agent, the
Additional Debtor shall be and become a party to this Agreement with the same rights and obligations as the Debtors, for all purposes
hereof as fully and to the same extent as if it were an original signatory hereto and shall be deemed to have made the representations,
warranties and covenants set forth herein as of the date of execution and delivery of such Additional Debtor Joinder, and all
references herein to the “Debtors” shall be deemed to include each Additional Debtor.

 

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(jj)
Each Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Debentures.

 

(kk)
Each Debtor shall register the pledge of the applicable Pledged Securities on the books of such Debtor. Each Debtor shall notify
each issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Parties
on the books of such issuer. Further, except with respect to certificated securities delivered to the Agent, the applicable Debtor
shall deliver to Agent an acknowledgement of pledge (which, where appropriate, shall comply with the requirements of the relevant
UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement
shall confirm that: (a) it has registered the pledge on its books and records; and (b) at any time directed by Agent during the
continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into the name of
any designee of Agent, will take such steps as may be necessary to effect the transfer, and will comply with all other instructions
of Agent regarding such Pledged Securities without the further consent of the applicable Debtor.

 

(ll)
In the event that, upon an occurrence of an Event of Default, Agent shall sell all or any of the Pledged Securities to another
party or parties (herein called the “Transferee”) or shall purchase or retain all or any of the Pledged Securities,
each Debtor shall, to the extent applicable: (i) deliver to Agent or the Transferee, as the case may be, the articles of incorporation,
bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences of indebtedness,
books of account, financial records and all other Organizational Documents and records of the Debtors and their direct and indirect
subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and directors of the Debtors
and their direct and indirect subsidiaries, if so requested; and (iii) use its best efforts to obtain any approvals that are required
by any governmental or regulatory body in order to permit the sale of the Pledged Securities to the Transferee or the purchase
or retention of the Pledged Securities by Agent and allow the Transferee or Agent to continue the business of the Debtors and
their direct and indirect subsidiaries.

 

(mm)
Without limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) cause to be
registered at the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated
hereby with respect to all Intellectual Property registered at the United States Copyright Office or United States Patent and
Trademark Office to be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires (whether absolutely
or by license) or creates any additional material Intellectual Property.

 

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(nn)
Each Debtor will from time to time, at the joint and several expense of the Debtors, promptly execute and deliver all such further
instruments and documents, and take all such further action as may be necessary or desirable, or as the Agent may reasonably request,
in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Parties
to exercise and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes
of this Agreement.

 

(oo)
Schedule F attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered
copyrights, and domain names owned by any of the Debtors as of the date hereof. Schedule F lists all material licenses
in favor of any Debtor for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material
patents and trademarks of the Debtors have been duly recorded at the United States Patent and Trademark Office and all material
copyrights of the Debtors have been duly recorded at the United States Copyright Office.

 

(pp)
Except as set forth on Schedule G attached hereto, none of the account debtors or other persons or entities obligated on
any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state
or local statute or rule in respect of such Collateral.

 

(qq)
Until the Obligations shall have been paid and performed in full, the Company covenants that it shall promptly direct any direct
or indirect subsidiary of the Company formed or acquired after the date hereof to enter into a Subsidiary Guarantee in favor of
the Secured Party, in the form of Exhibit C to the Purchase Agreement.

 

5.
Effect of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or
ownership interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership
interests upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock
or assets of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the
enforcement of any of Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion
rights notwithstanding any provisions in the Organizational Documents or agreements to which any Debtor is subject or to which
any Debtor is party.

 

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6.
Defaults. The following events shall be “Events of Default”:

 

(a)
The occurrence of an Event of Default (as defined in the Debentures) under the Debentures;

 

(b)
Any representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when
made;

 

(c)
The failure by any Debtor to observe or perform any of its obligations hereunder for five (5) days after delivery to such Debtor
of notice of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within
such time frame and such Debtor is using best efforts to cure same in a timely fashion; or

 

(d)
If any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental authority having
jurisdiction over any Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor shall deny that any
Debtor has any liability or obligation purported to be created under this Agreement.

 

7.
Duty To Hold In Trust.

 

(a)
Upon the occurrence of any Event of Default and at any time thereafter, each Debtor shall, upon receipt of any revenue, income,
dividend, interest or other sums subject to the Security Interests, whether payable pursuant to the Debentures or otherwise, or
of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in
trust for the Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Parties,
pro-rata in proportion to their respective then-currently outstanding principal amount of Debentures for application to the satisfaction
of the Obligations (and if any Debenture is not outstanding, pro-rata in proportion to the initial purchases of the remaining
Debentures).

 

(b)
If any Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation,
shares of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in connection with any reorganization of such Debtor or any of
its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in
exchange for, such Pledged Securities or otherwise), such Debtor agrees to (i) accept the same as the agent of the Secured Parties;
(ii) hold the same in trust on behalf of and for the benefit of the Secured Parties; and (iii) to deliver any and all certificates
or instruments evidencing the same to Agent on or before the close of business on the fifth business day following the receipt
thereof by such Debtor, in the exact form received together with the Necessary Endorsements, to be held by Agent subject to the
terms of this Agreement as Collateral.

 

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8.
Rights and Remedies Upon Default.

 

(a)
Upon the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Agent, shall have
the right to exercise all of the remedies conferred hereunder and under the Debentures, and the Secured Parties shall have all
the rights and remedies of a secured party under the UCC. Without limitation, the Agent, for the benefit of the Secured Parties,
shall have the following rights and powers:

 

(i)
The Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance
of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor
shall assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at
such Debtor's premises or elsewhere, and make available to the Agent, without rent, all of such Debtor’s respective premises
and facilities for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable
form.

 

(ii)
Upon notice to the Debtors by Agent, all rights of each Debtor to exercise the voting and other consensual rights which it would
otherwise be entitled to exercise and all rights of each Debtor to receive the dividends and interest which it would otherwise
be authorized to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive, for the benefit of
the Secured Parties, any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise
in such Agent’s discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent
shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute
owner thereof, including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral
in connection with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the
Collateral or any Debtor or any of its direct or indirect subsidiaries.

 

(iii)
The Agent shall have the right to operate the business of each Debtor using the Collateral and shall have the right to assign,
sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either
with or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and
at such time or times and at such place or places, and upon such terms and conditions as the Agent may deem commercially reasonable,
all without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to
any Debtor or right of redemption of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other
transfer of Collateral, the Agent, for the benefit of the Secured Parties, may, unless prohibited by applicable law which cannot
be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption
and equities of any Debtor, which are hereby waived and released.

 

(iv)
The Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights against such
account debtors and obligors.

 

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(v)
The Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other
person or entity holding any investment property to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.

 

(vi)
The Agent may (but is not obligated to) transfer any or all Intellectual Property registered in the name of any Debtor at the
United States Patent and Trademark Office and/or Copyright Office into the name of the Secured Parties or any designee or any
purchaser of any Collateral.

 

(b)
The Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be
considered adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral
without giving any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit,
the Debtors will only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights
that it may have to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder,
including, without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise
its rights and remedies with respect thereto.

 

(c)
For the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by agreement
or applicable law, each Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured Parties, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to such Debtor) to use, license or sublicense
following an Event of Default, any Intellectual Property now owned or hereafter acquired by such Debtor, and wherever the same
may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored
and to all computer software and programs used for the compilation or printout thereof.

 

9.
Applications of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from
payments made on account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses
of retaking, holding, storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes,
fees and other costs incurred in connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses
incurred by the Agent in enforcing the Secured Parties’ rights hereunder and in connection with collecting, storing and
disposing of the Collateral, and then to satisfaction of the Obligations pro rata among the Secured Parties (based on then-outstanding
principal amounts of Debentures at the time of any such determination), and to the payment of any other amounts required by applicable
law, after which the Secured Parties shall pay to the applicable Debtor any surplus proceeds. If, upon the sale, license or other
disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Parties are legally
entitled, the Debtors will be liable for the deficiency, together with interest thereon, at the rate of 18% per annum or the lesser
amount permitted by applicable law (the “Default Rate”), and the reasonable fees of any attorneys employed
by the Secured Parties to collect such deficiency. To the extent permitted by applicable law, each Debtor waives all claims, damages
and demands against the Secured Parties arising out of the repossession, removal, retention or sale of the Collateral, unless
due solely to the gross negligence or willful misconduct of the Secured Parties as determined by a final judgment (not subject
to further appeal) of a court of competent jurisdiction.

 

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10.
Securities Law Provision. Each Debtor recognizes that Agent may be limited in its ability to effect a sale to the public
of all or part of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other
federal or state securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one
or more sales to a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own
account, for investment and not with a view to the distribution or resale thereof. Each Debtor agrees that sales so made may be
at prices and on terms less favorable than if the Pledged Securities were sold to the public, and that Agent has no obligation
to delay the sale of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the
public under the Securities Laws. Each Debtor shall cooperate with Agent in its attempt to satisfy any requirements under the
Securities Laws (including, without limitation, registration thereunder if requested by Agent) applicable to the sale of the Pledged
Securities by Agent.

 

11.
Costs and Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection
with any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements,
partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Agent.
The Debtors shall also pay all other claims and charges which in the reasonable opinion of the Agent is reasonably likely to prejudice,
imperil or otherwise affect the Collateral or the Security Interests therein. The Debtors will also, upon demand, pay to the Agent
the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and
agents, which the Agent, for the benefit of the Secured Parties, may incur in connection with the creation, perfection, protection,
satisfaction, foreclosure, collection or enforcement of the Security Interest and the preparation, administration, continuance,
amendment or enforcement of this Agreement and pay to the Agent the amount of any and all reasonable expenses, including the reasonable
fees and expenses of its counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties, and the
Secured Parties may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the
sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the
rights of the Secured Parties under the Debentures. Until so paid, any fees payable hereunder shall be added to the principal
amount of the Debentures and shall bear interest at the Default Rate.

 

12.
Responsibility for Collateral. The Debtors assume all liabilities and responsibility in connection with all Collateral,
and the Obligations shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the
Collateral or its unavailability for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any
Secured Party (i) has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral
or to preserve any rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral
for sale, and (b) each Debtor shall remain obligated and liable under each contract or agreement included in the Collateral to
be observed or performed by such Debtor thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability
under any such contract or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Secured
Party of any payment relating to any of the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to
perform any of the obligations of any Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature
or sufficiency of any payment received by the Agent or any Secured Party in respect of the Collateral or as to the sufficiency
of any performance by any party under any such contract or agreement, to present or file any claim, to take any action to enforce
any performance or to collect the payment of any amounts which may have been assigned to the Agent or to which the Agent or any
Secured Party may be entitled at any time or times.

 

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13.
Security Interests Absolute. All rights of the Secured Parties and all obligations of the Debtors hereunder, shall be absolute
and unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Debentures or any agreement
entered into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of
payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any
consent to any departure from the Debentures or any other agreement entered into in connection with the foregoing; (c) any exchange,
release or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other
collateral for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties
to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with
the Collateral; or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor,
or a discharge of all or any part of the Security Interests granted hereby. Until the Obligations shall have been paid and performed
in full, the rights of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without
limitation, the running of the statute of limitations or bankruptcy. Each Debtor expressly waives presentment, protest, notice
of protest, demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral
or any payment received by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to
have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall
be deemed to be otherwise due to any party other than the Secured Parties, then, in any such event, each Debtor’s obligations
hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof
and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms
and provisions hereof. Each Debtor waives all right to require the Secured Parties to proceed against any other person or entity
or to apply any Collateral which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other remedy.
Each Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby.

 

14.
Term of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the
Debentures have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that
all indemnities of the Debtors contained in this Agreement (including, without limitation, Annex B hereto) shall survive and remain
operative and in full force and effect regardless of the termination of this Agreement.

 

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15.
Power of Attorney; Further Assurances.

 

(a)
Each Debtor authorizes the Agent, and does hereby make, constitute and appoint the Agent and its officers, agents, successors
or assigns with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of
the Agent or such Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks,
drafts, money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance)
in respect of the Collateral that may come into possession of the Agent; (ii) to sign and endorse any financing statement pursuant
to the UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge
taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv)
to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual
Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Agent, and at the
expense of the Debtors, at any time, or from time to time, to execute and deliver any and all documents and instruments and to
do all acts and things which the Agent deems necessary to protect, preserve and realize upon the Collateral and the Security Interests
granted therein in order to effect the intent of this Agreement and the Debentures all as fully and effectually as the Debtors
might or could do; and each Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof.
This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long
as any of the Obligations shall be outstanding. The designation set forth herein shall be deemed to amend and supersede any inconsistent
provision in the Organizational Documents or other documents or agreements to which any Debtor is subject or to which any Debtor
is a party. Without limiting the generality of the foregoing, after the occurrence and during the continuance of an Event of Default,
each Secured Party is specifically authorized to execute and file any applications for or instruments of transfer and assignment
of any patents, trademarks, copyrights or other Intellectual Property with the United States Patent and Trademark Office and the
United States Copyright Office.

 

(b)
On a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper
filing and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule C
attached hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as
reasonably requested by the Agent, to perfect the Security Interests granted hereunder and otherwise to carry out the intent and
purposes of this Agreement, or for assuring and confirming to the Agent the grant or perfection of a perfected security interest
in all the Collateral under the UCC.

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(c)
Each Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact, with full authority in the place and
instead of such Debtor and in the name of such Debtor, from time to time in the Agent’s discretion, to take any action and
to execute any instrument which the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, pertaining
to the filing, in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to
any of the Collateral without the signature of such Debtor where permitted by law, which financing statements may (but need not)
describe the Collateral as “all assets” or “all personal property” or words of like import, and ratifies
all such actions taken by the Agent. This power of attorney is coupled with an interest and shall be irrevocable for the term
of this Agreement and thereafter as long as any of the Obligations shall be outstanding.

 

16.
Notices. All notices, requests, demands and other communications hereunder shall be subject to the notice provision of
the Purchase Agreement (as such term is defined in the Debentures).

 

17.
Other Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or
by the guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Agent shall have the
right, in its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without
in any way modifying or affecting any of the Secured Parties’ rights and remedies hereunder.

 

18.
Appointment of Agent. The Secured Parties hereby appoint Cavalry Fund I LP to act as their agent (“Agent”)
for purposes of exercising any and all rights and remedies of the Secured Parties hereunder. Such appointment shall continue until
revoked in writing by a Majority in Interest, at which time a Majority in Interest shall appoint a new Agent. The Agent shall
have the rights, responsibilities and immunities set forth in Annex B hereto.

 

19.
Miscellaneous.

 

(a)
No course of dealing between the Debtors and the Secured Parties, nor any failure to exercise, nor any delay in exercising, on
the part of the Secured Parties, any right, power or privilege hereunder or under the Debentures shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

 

(b)
All of the rights and remedies of the Secured Parties with respect to the Collateral, whether established hereby or by the Debentures
or by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

 

(c)
This Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters,
which the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No provision of this
Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment,
by the Debtors and the Secured Parties holding 67% or more of the principal amount of Debentures then outstanding, or, in the
case of a waiver, by the party against whom enforcement of any such waived provision is sought.

 

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(d)
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

(e)
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f)
This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company
and the Guarantors may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each
Secured Party (other than by merger). Any Secured Party may assign any or all of its rights under this Agreement to any Person
(as defined in the Purchase Agreement) to whom such Secured Party assigns or transfers any Obligations, provided such transferee
agrees in writing to be bound, with respect to the transferred Obligations, by the provisions of this Agreement that apply to
the “Secured Parties.”

 

(g)
Each party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in
order to carry out the provisions and purposes of this Agreement.

 

(h)
Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, each Debtor agrees that all proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and the Debentures
(whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees
or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan.
Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, each Debtor hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service
of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby.

 

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(i)
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(j)
All Debtors shall jointly and severally be liable for the obligations of each Debtor to the Secured Parties hereunder.

 

(k)
Each Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured Parties and their respective partners, members,
shareholders, officers, directors, employees and agents (and any other persons with other titles that have similar functions)
(collectively, “Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties,
suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the
foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise
from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses
which result from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision
of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification
provision in the Debentures, the Purchase Agreement (as such term is defined in the Debentures) or any other agreement, instrument
or other document executed or delivered in connection herewith or therewith.

 

(l)
Nothing in this Agreement shall be construed to subject Agent or any Secured Party to liability as a partner in any Debtor or
any if its direct or indirect subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect
subsidiaries that is a limited liability company, nor shall Agent or any Secured Party be

deemed
to have assumed any obligations under any partnership agreement or limited liability company agreement, as applicable, of any
such Debtor or any of its direct or indirect subsidiaries or otherwise, unless and until any such Secured Party exercises its
right to be substituted for such Debtor as a partner or member, as applicable, pursuant hereto.

 

(m)
To the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or member, as applicable, of any Debtor or any direct or indirect subsidiary of any Debtor or
compliance with any provisions of any of the Organizational Documents, the Debtors hereby grant such consent and approval and
waive any such noncompliance with the terms of said documents.

 

[SIGNATURE
PAGES FOLLOW]

 

    22

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.

 

	RECRUITER.COM
    GROUP, INC.	 
	 	 	 	 
	By:	 	 
	 	Name:	 Miles
    Jennings	 
	 	Title: 	Chief Executive
    Officer 	 

 

	RECRUITER.COM,
    INC.	 
	 	 	 	 
	By:	         	 
	 	Name:	          	 
	 	Title:	 	 

 

	RECRUITER.COM
    RECRUITING SOLUTIONS LLC
	 	 	 	 
	By:	 	 
	 	Name:	          	 
	 	Title:	 	 

 

	VOCAWORKS,
    INC.	 
	 	 	 	 
	By:	 	 
	 	Name:	          	 
	 	Title:	 	 

 

	RECRUITER.COM
    CONSULTING, LLC	 
	 	 	 	 
	By:	 	 
	 	Name:	          	 
	 	Title:	 	 

 

    23

     

    

 

	 	AGENT:
	 	 
	 	CAVALRY
    FUND I LP
	 	 
	 	By:
     	      
	 	Name:
    	Thomas
    P. Walsh
	 	Title:
    	Manager
	 	 
	 	Notice
    Address:
	 	 
	 	61
                                         Kinderkamack Road

                                                       Woodcliff
                                         Lake, NJ 07677

 

    24

     

    

 

[SIGNATURE
PAGE OF SECURED PARTIES TO THE SECURITY AGREEMENT]

 

For
Entities

 

	 	Name
    of Investing Entity:	      
	 	Signature
    of Authorized Signatory of	 
	 	Investing
        entity:

        
	 
	 	Name
    of Authorized Signatory:   	 
	 	Title
        of Authorized Signatory:

        
	 
	 	Notice
        Address:

        
	 
	 	Email:	 

 

Signature
Page for Entities

 

    25

     

    

 

[SIGNATURE
PAGE OF SECURED PARTIES TO THE SECURITY AGREEMENT]

 

For
Individuals:

 

	 	Name of Individual Investor:
    	 
	 	Signature of Individual Investor:	 
	 	Notice Address:	 
	 	Email: 	 

 

Signature
Page for Individual Investors

 

    26

     

    

 

ANNEX
A

to

SECURITY

AGREEMENT

 

FORM
OF ADDITIONAL DEBTOR JOINDER

 

Security
Agreement dated as of May   , 2020 made by Recruiter.com Group, Inc.

and
its subsidiaries party thereto from time to time, as Debtors to and in favor of

the
Secured Parties identified therein (the “Security Agreement”)

 

Reference
is made to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have
the meanings given to such terms in, or by reference in, the Security Agreement.

 

The
undersigned hereby agrees that upon delivery of this Additional Debtor Joinder to the Secured Parties referred to above, the undersigned
shall (a) be an Additional Debtor under the Security Agreement, (b) have all the rights and obligations of the Debtors under the
Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to
have made the representations and warranties set forth therein as of the date of execution and delivery of this Additional Debtor
Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY
INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY
TRIAL PROVISIONS SET FORTH THEREIN.

 

Attached
hereto are supplemental and/or replacement Schedules to the Security Agreement, as applicable.

 

An
executed copy of this Joinder shall be delivered to the Secured Parties, and the Secured Parties may rely on the matters set forth
herein on or after the date hereof. This Joinder shall not be modified, amended or terminated without the prior written consent
of the Secured Parties.

 

    Annex A -1

     

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the name and on behalf of the undersigned.

 

	 	[Name
    of Additional Debtor 
	 	 
	 	By:	  
	 	Name:
	 	Title:
	 	 
	 	Address:
	 	 
	Dated:	 

 

    Annex A 2

     

    

 

ANNEX
B

to
SECURITY

AGREEMENT
THE AGENT

 

1.
Appointment. The Secured Parties (all capitalized terms used herein and not otherwise defined shall have the respective
meanings provided in the Security Agreement to which this Annex B is attached (the “Agreement”)), by their
acceptance of the benefits of the Agreement, hereby designate
[ (“[” or “Agent”) as the Agent to act as specified
herein and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize the Agent to take such action on its
behalf under the provisions of the Agreement and any other Transaction Document (as such term is defined in the Purchase Agreement)
and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of
the Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. The Agent may perform any
of its duties hereunder by or through its agents or employees.

 

2.
Nature of Duties. The Agent shall have no duties or responsibilities except those expressly set forth in the Agreement.
Neither the Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable for
any action taken or omitted by it as such under the Agreement or hereunder or in connection herewith or therewith, be responsible
for the consequence of any oversight or error of judgment or answerable for any loss, unless caused solely by its or their gross
negligence or willful misconduct as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.
The duties of the Agent shall be mechanical and administrative in nature; the Agent shall not have by reason of the Agreement
or any other Transaction Document a fiduciary relationship in respect of any Debtor or any Secured Party; and nothing in the Agreement
or any other Transaction Document, expressed or implied, is intended to or shall be so construed as to impose upon the Agent any
obligations in respect of the Agreement or any other Transaction Document except as expressly set forth herein and therein.

 

3.
Lack of Reliance on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs
of the Company and its subsidiaries in connection with such Secured Party’s investment in the Debtors, the creation and
continuance of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any
action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of
the value of the Collateral from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing
basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether coming into its
possession before any Obligations are incurred or at any time or times thereafter. The Agent shall not be responsible to the Debtors
or any Secured Party for any recitals, statements, information, representations or warranties herein or in any document, certificate
or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectability, priority or sufficiency of the Agreement or any other Transaction Document, or for the financial condition
of the Debtors or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or
observance of any of the terms, provisions or conditions of the Agreement or any other Transaction Document, or the financial
condition of the Debtors, or the value of any of the Collateral, or the existence or possible existence of any default or Event
of Default under the Agreement, the Debentures or any of the other Transaction Documents.

 

    Annex B - 1

     

    

 

4.
Certain Rights of the Agent. The Agent shall have the right to take any action with respect to the Collateral, on behalf
of all of the Secured Parties. To the extent practical, the Agent shall request instructions from the Secured Parties with respect
to any material act or action (including failure to act) in connection with the Agreement or any other Transaction Document, and
shall be entitled to act or refrain from acting in accordance with the instructions of a Majority in Interest; if such instructions
are not provided despite the Agent’s request therefor, the Agent shall be entitled to refrain from such act or taking such
action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions
to be taken by the Agent; and the Agent shall not incur liability to any person or entity by reason of so refraining. Without
limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent as a result of the Agent
acting or refraining from acting hereunder in accordance with the terms of the Agreement or any other Transaction Document, and
the Debtors shall have no right to question or challenge the authority of, or the instructions given to, the Agent pursuant to
the foregoing and (b) the Agent shall not be required to take any action which the Agent believes (i) could reasonably be expected
to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction Documents or applicable law.

 

5.
Reliance. The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message
signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the
other Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining
to this Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected by it.
Anything to the contrary notwithstanding, the Agent shall have no obligation whatsoever to any Secured Party to assure that the
Collateral exists or is owned by the Debtors or is cared for, protected or insured or that the liens granted pursuant to the Agreement
have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any particular priority.

 

6.
Indemnification. To the extent that the Agent is not reimbursed and indemnified by the Debtors, the Secured Parties
will jointly and severally reimburse and indemnify the Agent, in proportion to their initially purchased respective principal
amounts of Debentures, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against
the Agent in performing its duties hereunder or under the Agreement or any other Transaction Document, or in any way relating
to or arising out of the Agreement or any other Transaction Document except for those determined by a final judgment (not subject
to further appeal) of a court of competent jurisdiction to have resulted solely from the Agent's own gross negligence or willful
misconduct. Prior to taking any action hereunder as Agent, the Agent may require each Secured Party to deposit with it sufficient
sums as it determines in good faith is necessary to protect the Agent for costs and expenses associated with taking such action.

 

    Annex B - 2

     

    

 

		7.	Resignation
                                         by the Agent.

 

(a)
The Agent may resign from the performance of all its functions and duties under the Agreement and the other Transaction Documents
at any time by giving 30 days' prior written notice (as provided in the Agreement) to the Debtors and the Secured Parties. Such
resignation shall take effect upon the appointment of a successor Agent pursuant to clauses (b) and (c) below.

 

(b)
Upon any such notice of resignation, the Secured Parties, acting by a Majority in Interest, shall appoint a successor Agent hereunder.

 

(c)
If a successor Agent shall not have been so appointed within said 30-day period, the Agent shall then appoint a successor Agent
who shall serve as Agent until such time, if any, as the Secured Parties appoint a successor Agent as provided above. If a successor
Agent has not been appointed within such 30-day period, the Agent may petition any court of competent jurisdiction or may interplead
the Debtors and the Secured Parties in a proceeding for the appointment of a successor Agent, and all fees, including, but not
limited to, extraordinary fees associated with the filing of interpleader and expenses associated therewith, shall be payable
by the Debtors on demand.

 

8.
Rights with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that
it shall not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant
to any other agreement or otherwise (other than pursuant to this Agreement), or take or institute any action against the Agent
or any of the other Secured Parties in respect of the Collateral or its rights hereunder (other than any such action arising from
the breach of this Agreement) and (ii) that such Secured Party has no other rights with respect to the Collateral other than as
set forth in this Agreement and the other Transaction Documents. Upon the acceptance of any appointment as Agent hereunder by
a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Agent and the retiring Agent shall be discharged from its duties and obligations under the Agreement. After
any retiring Agent’s resignation or removal hereunder as Agent, the provisions of the Agreement including this Annex B shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent.

 

 

 

Annex
B - 3Exhibit
10.3

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

THIS
EXECUTIVE EMPLOYMENT (the “Agreement”) is entered into as of July 1, 2020 (the “Effective Date”),
by and between Recruiter.com Group, Inc., a Nevada corporation (the “Company”), and Chad MacRae (the “Executive”),
located at 6503 Drexel Avenue Los Angeles CA 90048. The provision of a majority of the employment services shall take place in
the State of California. An Executive Employment Agreement attached as Schedule 1 is superceded by this Agreement, which agreement
controls in all respects.

 

WHEREAS,
in its business, the Company has acquired and developed certain trade secrets, including, but not limited to, proprietary processes,
sales methods and techniques, and other like confidential business and technical information, including but not limited to, technical
information, design systems, pricing methods, pricing rates or discounts, processes, procedures, formulas, designs of computer
software, or improvements, or any portion or phase thereof, whether patented or not, or unpatentable, that is of any value whatsoever
to the Company, as well as information relating to the Company’s Services (as defined below), information concerning proposed
new Services, market feasibility studies, proposed or existing marketing techniques or plans (whether developed or produced by
the Company or by any other person or entity for the Company), other Confidential Information, as defined in Section 9(a), and
information about the Company’s executives, officers, and directors, which necessarily will be communicated to the Executive
by reason of his employment by the Company; and

 

WHEREAS,
the Company has a strong and legitimate business interests in preserving and protecting its investment in the Executive, its trade
secrets and Confidential Information, and its substantial, significant, or key relationships with vendors and customers, whether
actual or prospective; and

 

WHEREAS,
the Company desires to preserve and protect its legitimate business interests further by restricting competitive activities of
the Executive during the term of this Agreement and for a reasonable time following the termination of this Agreement; and

 

WHEREAS,
the Company desires to employ the Executive and to ensure the continued availability to the Company of the Executive’s services,
and the Executive is willing to accept such employment and render such services, all upon and subject to the terms and conditions
contained in this Agreement.

 

     

     

    

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants set forth in this Agreement, and intending to be legally
bound, the Company and the Executive agree as follows:

 

1.
Representations and Warranties.

 

(a)
The Executive hereby represents and warrants to the Company that he (i) is not subject to any non-solicitation or
non-competition agreement affecting his employment with the Company (other than any prior agreement with the Company or an
affiliate of the Company), (ii) is not subject to any confidentiality or nonuse/nondisclosure agreement affecting his
employment with the Company (other than any prior agreement with the Company or an affiliate of the Company), and (iii) has
brought to the Company no trade secrets, confidential business information, documents, or other personal property of a prior
employer. The recitals above are incorporated in this Agreement as representations and covenants. Each party covenants to act
in good faith in the discharge of this Agreement.

 

(b)
Notwithstanding anything in this Agreement to the contrary, it is understood and agreed that nothing in this Agreement is intended
to restrict or prevent the Executive from engaging in other consulting opportunities offered by third parties. Provided,
however, such consulting does not (1) directly conflict with the time commitments required by the Company or (2) directly
compete with the Company’s business in the markets in which it operates and does not pertain to or concern the Assigned
Customers listed on Exhibit A hereto and any additional customers that the Executive shall perform services for a san employee
of the Company.

 

2.
Duties.

 

(a)
General Duties. The Company shall employ the Executive for a one-year term beginning a sof the Effective Date (the “Term”).
He shall serve as the Senior Vice President Recruiters On Demand of the Company, with duties and responsibilities that are assigned
to the Executive by other officers of the Company. The Executive shall report to the Company’s CEO or such other person
as may be designated by the Company’s Board of Directors. The Executive shall also perform services for subsidiaries and
affiliates of the Company as may be necessary and as requested from time to time. The Executive shall use his best efforts to
perform his duties and discharge his responsibilities pursuant to this Agreement competently, carefully, and faithfully. In determining
whether or not the Executive has used his best efforts hereunder, the Executive’s and the Company’s delegation of
authority and all surrounding circumstances shall be taken into account and the best efforts of the Executive shall not be judged
solely on the Company’s earnings or other results of the Executive’s performance, except as specifically provided
to the contrary by this Agreement.

 

(b)
Adherence to Inside Information Policies. The Executive acknowledges that the Company is publicly-held and, as a result,
has implemented inside information policies designed to preclude its executives and those of its subsidiaries and affiliates from
violating the federal securities laws by trading on material, non-public information or passing such information on to others
in breach of any duty owed to the Company, or any third party. The Executive shall promptly execute any agreements generally distributed
by the Company to its employees requiring such employees, including the Executive, to abide by its inside information policies.

 

Executive Employment Agreement for Chad MacRae

 

    2

     

    

 

(c)
Indemnification. The Executive shall be entitled to rely on the Articles of Incorporation and/or Bylaws for all the corporate
indemnifications provided to such Company officers. The Executive shall be entitled to the full protection and limitation of liability
afforded to corporate officers by any and all indemnification provisions set forth in the Company Articles of Incorporation and/or
Bylaws and as provided by statute.

 

3.
Compensation, Expenses and Assignment of Executive’s Customers

 

		(a)	In
                                         exchange for transferring the assets as identified in Exhibit A (“Assets
                                         and Customers to be transferred”) and hereto referred to as the “Assigned
                                         Customers”, the Executive will be paid the following;

 

		(i)	Upon
                                         execution and delivery of this Agreement to the Company, the sum of Fifty thousand dollars
                                         ($50,000) as a non-refundable signing bonus. To clarify, this $50,000 shall not be considered
                                         part of the profit calculations in Exhibit B, but rather as a “free and
                                         clear” payment as an incentive to become an employee.
		(ii)	Starting
                                         July 1, 2020, an annual Base salary of $125,000 paid every two weeks consistent with
                                         the payment policies of the Company (“Salary”).
		(iii)	A
                                         Bonus Compensation package capped at $350,000, equaling the “Profit” defined
                                         in Exhibit B - (“Bonus Compensation”).
		(iv)	In
                                         addition to the aforesaid and as part of his employment compensation, Executive shall
                                         receive from the Company five-year Incentive Stock Options, as defined by the Code to
                                         purchase 250,000 shares of the Company’s common stock issuable under the 2017 Equity
                                         Incentive Plan, as amended (the “Plan”), subject to the approval of the Plan
                                         by the stockholders of the Company on or before June 18, 2021. The Company represents
                                         to the Executive that said stock option grant has already been approved by the Board
                                         of Directors (the “Board”). The exercise price for all 250,000 options shall
                                         be $1.85. The options shall vest on the last calendar day of each month over a
                                         12 month period beginning the Effective Date in equal monthly increments, subject to
                                         continued employment with the Company as of each applicable vesting date and subject
                                         to execution of the Company’s standard Stock Option Agreement. Unless the Executive
                                         is terminated by the Company for Cause before all the stock options have vested, then
                                         any remaining unvested stock options shall automatically accelerate and vest so that
                                         Executive shall have the right to exercise the full amount of 250,000 options. Upon a
                                         termination for Cause, all unvested options shall terminate.
		(v)	When
                                         the Bonus Compensation, as defined in Exhibit B, totals $350,000, the Company
                                         shall issue to the Executive, subject to approval by the Company’s Board, qualified
                                         options to purchase an additional 250,000 shares of the Company’s common stock
                                         at an exercise price equal to the market price as of the date the Bonus Compensaton is
                                         computed, subject to adjustment for any increase or decrease in the number of issued
                                         shares resulting from a stock dividend, stock split, reverse stock split, or other subdivision
                                         or consolidation of shares. These options shall vest over a two (2) year period in equal
                                         quarterly installments on the last day of each calendar quarter beginning with the first
                                         full calendar quarter after computation of the Bonus Compensation totalling $350,000,
                                         subject to the Executive’s continued employment with the Company as of each applicable
                                         vesting date.

 

Executive Employment Agreement for Chad MacRae

 

    3

     

    

 

		(b)	Expenses.
                                         In addition to any compensation received pursuant to this Section 3, the Company will
                                         reimburse or advance funds to the Executive for all reasonable documented travel, meals,
                                         and lodging (including travel expenses incurred by the Executive related to his travel
                                         to the Company’s other offices and on business missions for the Company), entertainment
                                         and miscellaneous expenses incurred in connection with the performance of his duties
                                         under this Agreement, provided that the Executive properly provides a written accounting
                                         of such expenses to the Company in accordance with the Company’s practices. Such
                                         reimbursement or advances will be made in accordance with the policies and procedures
                                         of the Company in effect from time to time relating to reimbursement of, or advances
                                         to, its executive officers, except that no policy shall change the terms of this Agreement.

 

4.
Benefits.

 

(a)
Paid Time Off. During the Term, for each calendar year starting with the calendar year 2020, the Executive shall be eligible
to receive four (4) weeks of Paid Time Off (“PTO”), to be taken at such times as the Executive may select and the
affairs of the Company may permit. The Executive’s eligibility for PTO in current calendar year shall be prorated based
on the Effective Date of this Agreement. Any accrued, but unused days may be carried over to the next calendar year. Any unused
PTO on the date of termination will be paid out to the Executive in cash as required by law.

 

(b)
Employee Benefit Programs. The Executive is entitled to participate in any pension, 401(k), insurance, or other employee
benefit plan that is maintained by the Company for its executives, including programs of life insurance and reimbursement of membership
fees in professional organizations. The benefits provided to the Executive may not be less than the Company provides to any of
its executive employees, and shall be subject to the terms and conditions of the applicable plan documents, as they may exist
from time to time, subject to applicable law.

 

5.
Termination.

 

(a).
Termination for Cause. The Company may terminate this Agreement for Cause.

 

For
purposes of this Agreement, “Cause” shall mean: (i) the Executive is convicted of, or pleads guilty or nolo contendere
to, a felony; (ii) the Executive, in carrying out his duties hereunder, has acted with gross negligence or intentional misconduct
resulting, in any case, in material harm to the Company; (iii) the Executive misappropriates Company funds or otherwise defrauds
the Company including a material amount of money or property; (iv) a Court of law has determined that the Executive has breached
his fiduciary duty to the Company resulting in material profit to him, directly or indirectly; (v) the Executive materially breaches
any agreement with the Company and fails to cure such breach within 10 days of receipt of notice, unless the act is incapable
of being cured; (vi) the Executive breaches any provision of Section 8 or Section 9; (vii) the Executive becomes subject to a
preliminary or permanent injunction issued by a United States District Court enjoining the Executive from violating any securities
law administered or regulated by the Securities and Exchange Commission; (viii) the Executive becomes subject to a cease and desist
order or other order issued by the Securities and Exchange Commission after an opportunity for a hearing; (ix) the Executive refuses
to carry out a legal resolution adopted by the Company’s Board at a meeting in which the Executive was offered a reasonable
opportunity to argue that the resolution should not be adopted; or (x) the Executive abuses alcohol or drugs in a manner that
materially interferes with the successful performance of his duties.

 

(b)
In the event this Agreement is terminated by either Party except by the Company for Cause, the Executive shall be entitled to
the following:

 

		(1)	any
                                         accrued but unpaid base salary through the date of termination;
		(2)	any
                                         accrued but unpaid Bonus Compensation required to be reimbursed under this Agreement;
		(3)	any
                                         accrued but unpaid expenses required to be reimbursed under this Agreement;
		(4)	any
                                         accrued but untaken PTO, and
		(5)	0ptions
                                         in the amount of 250,000 shares shall accelerate in vesting so that the Executive is
                                         entitled to exercise up to 250,000 options.

 

Upon
termination of the Executive’s employment, the Executive shall (i) provide or return to the Company any and all Company
property, including keys, key cards, access cards, security devices, employer credit cards, network access devices, computers,
cell phones, smartphones, manuals, work product, thumb drives or other removable information storage devices, and hard drives,
and all Company documents and materials belonging to the Company and stored in any fashion, including but not limited to those
that constitute or contain any Confidential Information or work product, that are in the possession or control of the Executive,
whether they were provided to the Executive by the Company or any of its business associates or created by the Executive in connection
with his employment by the Company; and (ii) delete or destroy all copies of any such documents and materials not returned to
the Company that remain in the Executive’s possession or control, including those stored on any non-Company devices, networks,
storage locations, and media in the Executive’s possession or control.

 

Executive Employment Agreement for Chad MacRae

 

    4

     

    

 

6.
Indemnification. The Company shall indemnify and hold-harmless the Executive, to the maximum extent permitted by the
Company’s Bylaws and applicable law, against all costs, charges, legal fees, and expenses incurred or sustained by him in
connection with any action, suit, or proceeding to which he may be made a party by reason of his being an officer or employee
of the Company or of any subsidiary or affiliate of the Company. The Executive does hereby and shall in the future, indemnify
and hold harmless the Company from and against any and all loss, liability, cost, or expense based upon, arising out of, or otherwise
in respect of any claim made by any of the Customers set forth on Exhibit A which claim pre-dates the Effective Date hereof.

 

(a)
No Solicitation of Employees. Until termination of this Agreement and for one year thereafter, the Executive shall not,
directly or indirectly, request, recommend, solicit or advise any employee of the Company to terminate his or her employment with
the Company , or solicit for employment or recommend to any third party the solicitation for employment of or the provision of
services by any individual who was employed by the Company or any of its subsidiaries and affiliates.

 

(b)
Non-disparagement. The Executive agrees that, after the termination of his employment, he will refrain from making, directly
or indirectly, in writing or orally, any unfavorable comments about the Company, its operations, policies, or procedures that
would be likely to injure the Company’s reputation or business prospects; provided, however, that nothing
herein shall preclude the Executive from responding truthfully to a lawful subpoena or other compulsory legal process or from
providing truthful information otherwise required by law. The Company shall use reasonable efforts to cause its senior executive
management team, after the end of Executive’s employment, to refrain from making, directly or indirectly, in writing or
orally, any unfavorable comments about the Executive that would be likely to injure the Executive’s reputation or business
prospects; provided, however, that nothing herein shall preclude the Company and its senior executive management team from responding
truthfully to a lawful subpoena or other compulsory legal process or from providing truthful information otherwise required by
law.

 

(c)
References. References to the Company in this Agreement shall include the Company’s subsidiaries and affiliates.

 

Executive Employment Agreement for Chad MacRae

 

    5

     

    

 

8.
Non-Disclosure of Confidential Information.

 

(a)
For purposes of this Agreement, “Confidential Information” includes, without limitation, trade secrets under any law
or the common law, processes, policies, procedures, techniques, designs, drawings, know-how, show-how, technical information,
specifications, computer software and source code, information and data relating to the development, research, testing, costs,
marketing, and uses of the Services (as defined herein), the Company’s budgets and strategic plans, and the identity and
special needs of Customers, vendors, and suppliers, subjects and databases, data, and all technology relating to the Company’s
businesses, systems, methods of operation, and Customer lists, Customer information, solicitation leads, marketing and advertising
materials, methods and manuals and forms, all of which pertain to the activities or operations of the Company, the names, home
addresses and all telephone numbers and e-mail addresses of the Company’s directors, employees, officers, executives, former
executives, Customers and former Customers. Confidential Information also includes, without limitation, Confidential Information
received from the Company’s subsidiaries and affiliates. For purposes of this Agreement, the following will not constitute
Confidential Information: (i) information that the Executive was aware of before the Effective Date of this Agreement, including
but not limited to, any and all Assigned Customer information, (ii) information which is or subsequently becomes generally available
to the public through no act or fault of the Executive, (iII) information set forth in the written records of the Executive prior
to disclosure to the Executive by or on behalf of the Company which information is given to the Company in writing as of or prior
to the date of this Agreement, and (iv) information which is lawfully obtained by the Executive in writing from a third party
(excluding any affiliates of the Executive) who lawfully acquired the confidential information and who did not acquire such confidential
information or trade secret, directly or indirectly, from the Executive or the Company or its subsidiaries or affiliates and who
has not breached any duty of confidentiality. As used herein, the term “Services” shall include all services offered
for sale and marketed by the Company during the Term.

 

(b)
Legitimate Business Interests. The Executive recognizes that the Company has legitimate business interests to protect and
as a consequence, the Executive agrees to the restrictions contained in this Agreement because they further the Company’s
legitimate business interests. These legitimate business interests include, but are not limited to (i) trade secrets; (ii) valuable
confidential business, technical, and/or professional information that otherwise may not qualify as trade secrets, including,
but not limited to, all Confidential Information; (iii) substantial, significant, or key relationships with specific prospective
or existing Customers, vendors, or suppliers; (iv) Customer goodwill associated with the Company’s business; and (v) specialized
training relating to the Company’s technology, Services, methods, operations and procedures. Notwithstanding the foregoing,
nothing in this Section 8(b) shall be construed to impose restrictions greater than those imposed by other provisions of this
Agreement.

 

(c)
Confidentiality. During the Term of this Agreement and following termination of employment, for any reason, the Confidential
Information shall be held by the Executive in the strictest confidence and shall not, without the prior express written consent
of the Company, be disclosed to any person other than in connection with the Executive’s employment by the Company. The
Executive further acknowledges that such Confidential Information as is acquired and used by the Company or its subsidiaries or
affiliates is a special, valuable, and unique asset. The Executive shall exercise all due and diligent precautions to protect
the integrity of the Company’s Confidential Information and to keep it confidential whether it is in written form, on electronic
media, oral, or otherwise. The Executive shall not copy any Confidential Information except to the extent necessary to his employment,
nor remove any Confidential Information or copies thereof from the Company’s premises except to the extent necessary to
his employment. All records, files, materials, and other Confidential Information obtained by the Executive in the course of his
employment with the Company are confidential and proprietary and shall remain the exclusive property of the Company. The Executive
shall not, except in connection with and as required by his performance of his duties under this Agreement, for any reason use
for his own benefit or the benefit of any person or entity other than the Company or disclose any such Confidential Information
to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever without the prior express
written consent of an executive officer of the Company (excluding the Executive).

 

Executive Employment Agreement for Chad MacRae

 

    6

     

    

 

(d)
Whistleblowing. Nothing contained in this Agreement shall be construed to prevent the Executive from reporting any act
or failure to act to the Securities and Exchnage Commission or other governmental body or agencies including but not limited to
the Department of Justice, or prevent the Executive from obtaining a fee as a “whistleblower” under Rule 21F-17(a)
under the Securities Exchange Act of 1934 or other rules or regulations implemented under the Dodd-Frank Wall Street Reform Act
and Consumer Protection Act.

 

(f)
Notice of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016 (“DTSA”).
Notwithstanding any other provision of this Agreement, the Executive will not be held criminally or civilly liable under any federal
or state trade secret law for any disclosure of a trade secret that is made (a) in confidence to a federal, state, or local government
official, either directly or indirectly, or to an attorney; and (b) solely for the purpose of reporting or investigating a suspected
violation of law; or is made in a complaint or other document filed under seal in a lawsuit or other proceeding. If the Executive
files a wrongful termination claim or a lawsuit for retaliation by the Company for reporting a suspected violation of law, the
Executive may disclose the Company’s trade secrets to the Executive’s attorney and use the trade secret information
in the court proceeding if the Executive files any document containing trade secrets under seal; and does not disclose trade secrets,
except pursuant to court order.

 

9.
Equitable Relief.

 

(a)
The Company and the Executive recognize that the services to be rendered under this Agreement by the Executive are special, unique,
and of extraordinary character, and that in the event of the breach by the Executive of the terms and conditions of Sections 7
or 8 above, or take any action in violation of Sections 7 or 8 above, the Company shall be entitled to institute and prosecute
proceedings in any court of competent jurisdiction referred to in Section 19(b) below, to enjoin the Executive from breaching
the provisions of Sections 7 and/or 8.

 

(b)
Any Equitable Action must be commenced only in the appropriate state or federal court located in Los Angeles, California. The
Executive and the Company irrevocably and unconditionally submit to the exclusive jurisdiction of such courts and agree to take
any and all future action necessary to submit to the jurisdiction of such courts. The Executive and the Company irrevocably waive
any objection that they now have or hereafter may have to the laying of venue of any suit, action, or proceeding brought in any
such court and further irrevocably waive any claim that any such suit, action, or proceeding brought in any such court has been
brought in an inconvenient forum. Final judgment against the Executive or the Company in any such suit shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment, a certified or true copy of which shall be conclusive evidence
of the fact and the amount of any liability of the Executive or the Company therein described, or by appropriate proceedings under
any applicable treaty or otherwise.

 

Executive Employment Agreement for Chad MacRae

 

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(c)
Conflicts of Interest. While employed by the Company, the Executive shall not, unless approved by the Board, directly or
indirectly:

 

		(1)	participate
                                         as an individual in any way in the benefits of transactions with any of the Company’s
                                         vendors or Customers, including, without limitation, having a financial interest in the
                                         Company’s vendors or Customers, or making loans to, or receiving loans, from, the
                                         Company’s vendors or Customers;

 

		(2)	realize
                                         a personal gain or advantage from a transaction in which the Company has an interest
                                         or use information obtained in connection with the Executive’s employment with
                                         the Company for the Executive’s personal advantage or gain; or

 

		(3)	accept
                                         any offer to serve as an officer, director, partner, consultant, manager with, or to
                                         be employed in a professional, technical, or managerial capacity by, a person or entity
                                         that does business with the Company.

 

10.
Inventions, Ideas, Processes, and Designs. All inventions, ideas, processes, programs, software, and designs (including
all improvements) (i) conceived or made by the Executive during the course of his employment with the Company (whether or not
actually conceived during regular business hours) and for a period of three months subsequent to the termination (whether by expiration
of the Term or otherwise) of such employment with the Company, and (ii) related to the business of the Company, shall be disclosed
in writing promptly to the Company and shall be the sole and exclusive property of the Company, and the Executive hereby assigns
any such inventions to the Company. An invention, idea, process, program, software, or design (including an improvement) shall
be deemed related to the business of the Company if (a) it was made with the Company’s funds, personnel, equipment, supplies,
facilities, or Confidential Information, (b) results from work performed by the Executive for the Company, or (c) pertains to
the current business or demonstrably anticipated research or development work of the Company. The Executive shall cooperate with
the Company and its attorneys in the preparation of patent and copyright applications for such developments and, upon request,
shall promptly assign all such inventions, ideas, processes, and designs to the Company. The decision to file for patent or copyright
protection or to maintain such development as a trade secret, or otherwise, shall be in the sole discretion of the Company, and
the Executive shall be bound by such decision. The Executive hereby irrevocably assigns to the Company, for no additional consideration,
the Executive’s entire right, title, and interest in and to all work product and intellectual property rights, including
the right to sue, counterclaim, and recover for all past, present and future infringement, misappropriation or dilution thereof,
and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or
limit the Company’s rights, title, or interest in any work product or intellectual property rights so as to be less in any
respect than the Company would have had in the absence of this Agreement. If applicable, the Executive shall provide as a schedule
to this Agreement, a complete list of all inventions, ideas, processes, and designs, if any, patented or unpatented, copyrighted
or otherwise, or non-copyrighted, including a brief description, which he made or conceived prior to his employment with the Company
and which therefore are excluded from the scope of this Agreement. For purposes of clarity, this provision shall not apply to
any inventions, ideas, process, programs, software or designs invented, created or conceived by the Executive prior to the Effective
Date of this Agreement.

 

Executive Employment Agreement for Chad MacRae

 

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11.
Indebtedness. If, during the course of the Executive’s employment under this Agreement, the Executive becomes
indebted to the Company for any reason, the Company may, if it so elects, and if permitted by applicable law, set off any sum
due to the Company from the Executive and collect any remaining balance from the Executive unless the Executive has entered into
a written agreement with the Company.

 

12.
Assignability. With written notice to the Executive, the rights and obligations of the Company under this Agreement
shall inure to the benefit of and be binding upon the successors and assigns of the Company, provided that such successor or assign
shall acquire all or substantially all of the securities or assets and business of the Company. The Executive’s obligations
hereunder may not be assigned or alienated and any attempt to do so by the Executive will be void.

 

13.
Severability.

 

(a)
The Executive expressly agrees that the character, duration, and geographical scope of the non- competition provisions set forth
in this Agreement are reasonable in light of the circumstances as they exist on the date hereof. Should a decision, however, be
made at a later date by a court of competent jurisdiction that the character, duration, or geographical scope of such provisions
is unreasonable, then it is the intention and the agreement of the Executive and the Company that this Agreement shall be construed
by the court in such a manner as to impose only those restrictions on the Executive’s conduct that are reasonable in the
light of the circumstances and as are necessary to assure to the Company the benefits of this Agreement. If, in any judicial proceeding,
a court shall refuse to enforce all of the separate covenants deemed included herein because taken together they are more extensive
than necessary to assure to the Company the intended benefits of this Agreement, it is expressly understood and agreed by the
parties hereto that the provisions of this Agreement that, if eliminated, would permit the remaining separate provisions to be
enforced in such proceeding shall be deemed eliminated, for the purposes of such proceeding, from this Agreement.

 

Executive Employment Agreement for Chad MacRae

 

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(b)
If any provision of this Agreement otherwise is deemed to be invalid or unenforceable or is prohibited by the laws of the state
or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision
shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties
to the other. The remaining provisions of this Agreement shall be valid and binding and of like effect as though such provisions
were not included.

 

14.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument. The execution of this Agreement by electronic signature
and/or DocuSign shall be considered valid and enforceable and it may be by actual, facsimile, or e-mail of a PDF or similar electronic
format signature.

 

15.
Attorneys’ Fees. In the event that there is any dispute, controversy or claim arising out of or relating to this
Agreement, or as to the interpretation of any provision herein, breach or enforcement thereof, and any action or proceeding is
commenced to interpret and/or enforce the provisions of this Agreement, after a hearing on the merits and after the trier of fact
makes a final determination, the prevailing party shall be entitled to an award of reasonable attorneys’ fees, costs and
expenses (including such fees and costs on appeal). The prevailing party shall be that party determined by the trier of fact to
have prevailed on more than 50% of its/his claims and obtains a net recovery in excess of $10,000 against the other party.

 

16.
Governing Law; Arbitration. This Agreement shall be governed or interpreted according to the internal laws of the State
of Nevada without regard to choice of law considerations. Except for a claim for equitable relief, any dispute, claim or controversy
arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including
the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in Los Angeles,
California before one arbitrator. The arbitration shall be administered by JAMS pursuant to JAMS' Streamlined Arbitration Rules
and Procedures. Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties
from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.

 

17.
Entire Agreement. This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral
and written agreements between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision
hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties
against which enforcement or the change, waiver discharge or termination is sought.

 

Executive Employment Agreement for Chad MacRae

 

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18.
Section and Paragraph Headings. The section and paragraph headings in this Agreement are for reference purposes only
and shall not affect the meaning or interpretation of this Agreement.

 

19.
Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT,
INCLUDING ANY EXHIBITS, SCHEDULES, AND ATTACHMENTS ATTACHED TO THIS AGREEMENT, IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS, SCHEDULES, AND ATTACHMENTS ATTACHED TO
THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

20.
Section 409A Compliance.

 

(a)
This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”),
or an exemption thereunder. This Agreement shall be construed and administered in accordance with Section 409A. Notwithstanding
any other provision of this Agreement to the contrary, payments provided under this Agreement may only be made upon an event and
in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded
from Section 409A either as separation pay due to an involuntary separation from service (including a voluntary separation from
service for good reason that is considered an involuntary separation for purposes of the separation pay exception under Treasury
Regulation 1.409A-1(n)(2)) or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For
purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments
to be made under this Agreement upon a termination of employment shall only be made if such termination of employment constitutes
a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations
that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable
for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by the Executive on account of
non-compliance with Section 409A.

 

(b)
Notwithstanding any other provision of this Agreement, if at the time of the Executive’s termination of employment, the
Executive is a “specified employee”, determined in accordance with Section 409A, any payments and benefits provided
under this Agreement that constitute “nonqualified deferred compensation” subject to Section 409A (e.g., payments
and benefits that do not qualify as a short-term deferral or as a separation pay exception) that are provided to the Executive
on account of the Executive’s separation from service shall not be paid until the first payroll date to occur following
the six-month anniversary of the Executive's termination date (“Specified Employee Payment Date”). The aggregate amount
of any payments that would otherwise have been made during such six-month period shall be paid in a lump sum on the Specified
Employee Payment Date without interest and thereafter, any remaining payments shall be paid without delay in accordance with their
original schedule. If the Executive dies during the six-month period, any delayed payments shall be paid to the Executive’s
estate in a lump sum upon the Executive’s death.

 

Executive Employment Agreement for Chad MacRae

 

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(c)
To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided
in accordance with the following:

 

		(i)	the
                                         amount of expenses eligible for reimbursement, or in-kind benefits provided, during each
                                         calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits
                                         to be provided, in any other calendar year;

 

		(ii)	any
                                         reimbursement of an eligible expense shall be paid to the Executive on or before the
                                         last day of the calendar year following the calendar year in which the expense was incurred;
                                         and

 

		(iii)	any
                                         right to reimbursements or in-kind benefits under this Agreement shall not be subject
                                         to liquidation or exchange for another benefit.

 

(d)
In the event the Company determines that the Executive is a “specified employee” within the meaning of Section
409A(a)(2)(B)(i) of the Code at the time of the Executive’s separation from service, then to the extent any payment or
benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from
service would be considered deferred compensation subject to Section 409A as a result of the application of Section
409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is
the earlier of (i) six months and one day after the Executive’s separation from service, or (ii) the
Executive’s death (the “Six Month Delay Rule”).

 

		(i)	For
                                         purposes of this subparagraph, amounts payable under the Agreement should not provide
                                         for a deferral of compensation subject to Section 409A to the extent provided in Treasury
                                         Regulation Section 1.409A-1(b)(4) (e.g., short-term deferrals), Treasury Regulation Section
                                         1.409A-1(b)(9) (e.g., separation pay plans, including the exception under subparagraph
                                         (iii)), and other applicable provisions of the Treasury Regulations.

 

		(ii)	To
                                         the extent that the Six Month Delay Rule applies to payments otherwise payable on an
                                         installment basis, the first payment shall include a catch-up payment covering amounts
                                         that would otherwise have been paid during the six-month period but for the application
                                         of the Six Month Delay Rule, and the balance of the installments shall be payable in
                                         accordance with their original schedule.

 

		(iii)	To
                                         the extent that the Six Month Delay Rule applies to the provision of benefits (including,
                                         but not limited to, life insurance and medical insurance), such benefit coverage shall
                                         nonetheless be provided to the Executive during the first six months following his separation
                                         from service (the “Six Month Period”), provided that, during such Six Month
                                         Period, the Executive pays to the Company, on a monthly basis in advance, an amount equal
                                         to the Monthly Cost (as defined below) of such benefit coverage. The Company shall reimburse
                                         the Executive for any such payments made by the Executive in a lump sum not later than
                                         30 days following the six-month anniversary of the Executive’s separation from
                                         service. For purposes of this subparagraph, “Monthly Cost” means the minimum
                                         dollar amount which, if paid by the Executive on a monthly basis in advance, results
                                         in the Executive not being required to recognize any federal income tax on receipt of
                                         the benefit coverage during the Six Month Period.

 

Executive Employment Agreement for Chad MacRae

 

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(e)
The parties intend that this Agreement will be administered in accordance with Section 409A. To the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that all
payments hereunder comply with Section 409A. The parties agree that this Agreement may be amended, as reasonably requested by
either party, and as may be necessary to fully comply with Section 409A and all related rules and regulations in order to preserve
the payments and benefits provided hereunder without additional cost to either party.

 

(f)
The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption from,
or the conditions of, such Section.

 

21.
Notification to Subsequent Employer. When the Executive’s employment with the Company terminates, the Executive
agrees to notify any subsequent employer of the restrictive covenants sections contained in this Agreement, to the extent that
they are lawful and apply to the Executive. In addition, the Executive authorizes the Company to provide a copy of the restrictive
covenants sections of this Agreement to third parties, including but not limited to the Executive’s subsequent, anticipated,
or future employer.

 

22.
Acknowledgment of Full Understanding; Construction. The Executive acknowledges and agrees that he has fully read, understands,
and voluntarily enters into this Agreement. The Executive acknowledges and agrees that he has had an opportunity to ask questions
and consult with an attorney of his choice before signing this Agreement, and that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement.

 

23.
Gender Neutral. Where appropriate herein, the references to the masculine gender shall include the feminine and neuter,
and vice versa, and the singular shall include the plural and the plural the singular, in each case as the context may require.

 

Executive Employment Agreement for Chad MacRae

 

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25.
No Third Party Beneficiaries. No incidental beneficiary has any rights under this Agreement, or any other contract,
understanding or agreement referenced herein. No third party (other than a party’s successors and assigns) may maintain
any action upon this Agreement or any of the terms and provisions herein merely because he/she/it would receive a benefit from
its performance or because he/she/it may be injured by the breach thereof. This Agreement is made for the benefit of the signing
parties only and their respective successors and assigns and for no other person or entity, and the mere fact that a third person
would be incidentally benefited does not give him/her/it any rights to sue for breach or for any action or claim.

 

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

 

	By:	/s/
    Miles Jennings	 
	 	Miles Jennings, COO	 

 

	 	 
	 	Chad MacRae

 

Executive Employment Agreement for Chad MacRae

 

     

     

    

 

Exhibit
B - Bonus Compensation

With
Reference to Section 3 and 5.2 of the Agreement

  

		1.	Profit
                                         is calculated as follows:
	 	(Add)
                                         Gross Revenue from the Assigned Customers listed on Exhibit A
	 	(Less)
                                         Cost of Sales from the Assigned Customers listed in Exhibit A
	 	=
                                         Net Revenue
	 	 
	 	(Less)
                                         All Divisional Operating Expenses associated with the Assigned Customers and the Recruiters
                                         on Demand line of business, including all compensation and benefits payable under this
                                         Employment Agreement
	 	=Profit
	 	 
	 	Gross
                                         Revenue, Cost of Sales, and Operating Expenses will be calculated on a GAAP basis
	 	 
	 	2.
                                         Executive shall receive any Profit which shall be considered “Bonus Compensation”
                                         payable to Executive on a quarterly basis,

 

7/8/2020

 

Dated:
July         , 2020

 

	By:	/s/
    Miles Jennings	 
	 	Miles Jennings, COO	 

 

	 	 
	Chad MacRae	 

 

Executive
Employment Agreement for Chad MacRae

 

     

     

    

 

SCHEDULE
1 – PRIOR SUPERCEDED AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Employment Agreement for Chad MacRae

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