Document:

EXHIBIT 10-1

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	New
    York	 	Chicago	 	San
    Diego	 	Atlanta	 	Vancouver	 	Sao
    Paulo	 	Hong
    Kong Beijing	 	Mumbai	 	Perth	 	Sydney	 	Taipei

 

www.mzgroup.us

 

Investor
Relations Consulting Agreement

 

THIS
CONSULTING AGREEMENT (“Agreement”) is made this 16th day of December 2013, by and between Cardinal Energy Group (OTCQBX:
CEGX) (hereinafter referred to as the “Company” or “CEGX”), and MZHCI, LLC, a MZ Group Company (hereinafter
referred collectively as the “Consultant” or “MZHCI”).

 

EXPLANATORY
STATEMENT

 

The
Consultant affirms that it has successfully demonstrated financial and public relations consulting expertise, and possesses valuable
knowledge, and experience in the areas of business finance and corporate investor/public relations. The Company believes that
the Consultant’s knowledge, expertise and experience would benefit the Company, and the Company desires to retain the Consultant
to perform consulting services for the Company under this Agreement.

 

NOW,
THEREFORE, in consideration of their mutual agreements and covenants contained herein, and for other valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and in further consideration of the affixation by the parties of their
respective signatures below, the parties agree as follows:

 

Consulting
Services

 

1.1
MZHCI agrees that for a period of twelve (12) months commencing December 16, 2013, the Consultant will reasonably be available
during regular business hours to advise, counsel and inform designated officers and employees of the Company as it relates to
financial markets and exchanges, competitors, business acquisitions and other aspects of or concerning the Company’s business
about which MZHCI has knowledge or expertise.

 

1.2
MZHCI shall render service to the Company as an independent contractor, and not as an employee. All services rendered by MZHCI
on behalf of the Company shall be performed to the best of MZHCI’s ability in concert with the overall business plan of
the Company and the goals and objectives of the Company’s management and Board of Directors, including articulating CEGX’s
investment story and highlights; building and maintaining relationships with supporters of the stock, including institutional
investors and sell-side analysts; increasing the Company participation in investment conferences focused on mobile technology
and small-cap companies; achieving a fair market value for the Company’s stock; and significantly increasing the Company’s
exposure in the financial market.

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 1 of 8

    	 

    

 

 

	i.
    	Scope
    of Services, Programs and Deliverables

 

MZHCI
will develop, implement, and maintain an ongoing stock market support system for CEGX with the general objective of expanding
awareness in CEGX among stockbrokers, analysts, small-cap portfolio/fund managers, market makers, and the appropriate financial
& trade publications.

 

1.
SHAREHOLDER COMMUNICATIONS

 

	 	A.	Consultant
    will understand the financials and all operating metrics of CEGX in detail, facilitating interactions with new and current
    investors.
	 	 	 
	 	B.	Consultant
    will provide 2 pager, PPT, and full website implementation.
	 	 	 
	 	C.	Consultant
    Will send welcome letter to initiate relationship with key shareholders + stakeholders.
	 	 	 
	 	D.	Consultant
    will review all Press Releases for all material events: assist management in articulating all material operating and financial
    events. Disseminate news to investor + media database.
	 	 	 
	 	E.	Consultant
    will provide a Senior Account Manager and single point of contact for all investors. Streamlines all communication and IR
    functionality.
	 	 	 
	 	F.	Consultant
    will conduct a perception study: contact shareholders/analysts and prospective investors on a quarterly basis to gather feedback
    on their views of how the business is evolving and management’s execution relative to expectations.
	 	 	 
	 	G.	Consultant
    will host all earnings conference calls. Logistics, script, and rehearsal sessions, including FAQs. Moderate call and manage
    the investor question queue.

 

2.
INVESTMENT COMMUNITY OUTREACH

 

MZ
will implement an ongoing stock market support system for CEGX with the general objective of expanding awareness among stockbrokers,
analysts, small-cap portfolio/fund managers, market makers, and the appropriate financial & trade publications.

 

	 	A.	Consultant
    will provide road show coaching with objective analysis and recommendations to improve management’s presentation delivery.
	 	 	 
	 	B.	Consultant
    will make introductions to targeted investors worldwide utilizing a proprietary, robust database:

 

	 	i.	Equity
    Brokers
	 	 	 
	 	ii.	 Analyses
    (both generalists and industry specialists)
	 	 	 
	 	iii.	Portfolio
    Managers/Institutions
	 	 	 
	 	iv.	High
    Net Worth Investors
	 	 	 
	 	v.	Market
    Makers
	 	 	 
	 	vi.	Financial
    Publications

 

	 	C.	Consultant
    will organize at least six (6) Non-Deal Road shows throughout the next twelve months. MZHCI provides complete intelligence
    pre and post meeting and has a trained professional to accompany management. This will include Australia and other countries
    if appropriate.
	 	 	 
	 	D.	Consultant
    will organize at least four (4) Virtual Non-Deal Road shows - Live investor presentations webcast from management’s
    locale.     This will be by invitation only and participants will be comprised of shareholders, institutional and retail
    investors, and     buy/sell side analysts.
	 	 	 
	 	E.	Consultant
    will screen all North American investment firms for upcoming financial conferences and select those that would be appropriate
    for CEGX. Work to secure invitations. Consultant will endeavor to obtain at least two invitations.

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 2 of 8

    	 

    

 

 

 

3.
FINANCIAL MEDIA RELATIONS

 

Targeted
media relations offer an important segment to the corporate story. MZHCI will target media opportunities that highlight CEGX’s
strategy, growth objectives, board of directors, developments and milestones related to its business. Services include:

 

	 	A.	Targeted
    media programs
	 	 	 
	 	B.
    	Strategic
    counsel
	 	 	 
	 	C.	Release
    drafts and media targets
	 	 	 
	 	D.	Q&A
    to support significant corporate developments
	 	 	 
	 	E.	Feedback
    after interviews

 

Trade
Magazines & Journals - Investors, business partners, customers, and business reporters utilize the industry press as a
valued source of information. MZHCI will raise awareness for CEGX’s business and technologies, and news events related to
growth performance, partnership deals, and significant product advances in qualified trade magazines and journals.

 

Business
& Financial Media - MZHCI will identify the optimal news, corporate, and industry trends that will provide angles in the
business/financial media and then actively pursue those opportunities with the appropriate reporter(s).

 

MZHCI
Branded Distribution - Company will be featured in MZHCI Newsletter which is distributed eight times per year to over 25,000
investors worldwide.

 

PUBLIC
MARKET INSIGHT

 

MZHCI
will counsel and educate the Company’s senior management on the life cycle of the financial markets end most importantly
how the Company is impacted directly and indirectly by different variables. The Team at MZHCI leverages its collective expertise
on all aspects of strategic financial, corporate and crisis communications gain through representing over 200 public companies.
MZHCI will help the Company set and manage expectations while relaying valuation metrics, perceptions, and methodologies utilized
by investment professionals. This consulting aspect of MZHCI’s business is extremely valuable for management to optimize
key opportunities and to avoid pitfalls.

 

As
part of its ongoing commitment and partnership with the Company, MZHCI will educate the Company’s senior management on the
importance of establishing conservative expectations and how various corporate actions may be perceived and impact the public
market. MZHCI can also help access acquisition candidates plus discuss the financial impacts and longer term implications.

 

	II.	Agenda

 

Timeline

 

FIRST
30 DAYS

 

		A.	Spend adequate time with management
to understand the business/growth plan, financial forecasts, capital expenditures, and cash flow projections.

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 3 of 8

    	 

    

 

 

 

	 	B.	Create
    a two-page Corporate Profile, which clearly articulates CEGX’s current business and financial position, as well
    as its strategy for future growth. This is an important marketing piece for investors to quickly learn about the company.
	 	 	 
	 	C.	Review
    and update PowerPoint presentation. MZHCI will utilize proprietary research, feedback from conversations and meetings to incorporate
    and improve the Investor PowerPoint and message delivery. UPDATED AT LEAST ONE TIME PER QUARTER.
	 	 	 
	 	D.	Assist
    and provide input for all corporate press releases including both creation and ongoing revisions. We will assist by providing
    additional fact finding and other market research which will help the context and delivery of the message.
	 	 	 
	 	E.	Include
    CEGX on MZ Newsletter and www.mzgroup.us website within two weeks.
	 	 	 
	 	F.	Counsel
    senior management on all aspects of the capital markets and most importantly how CEGX is impacted directly and indirectly
    by different economic variables. The goal is to enable management to optimize key opportunities and to avoid pitfalls, both
    of which have long-term positive implications.
	 	 	 
	 	G.	Host
    Virtual Road Shows for management with goal of having at least 20-25 new investment professionals joining during each event.
    Alternate schedules between these events and traditional Road Shows to continue growing a pipeline of new and interested investors.
	 	 	 
	 	H.	Develop
    initial target list and begin making introductions to investment professionals and investors while seeding and confirming
    meetings for upcoming Road Shows. Practice and refine presentation with management team.
	 	 	 	 
	 	 	-	Target
    brokers, fund Managers, Buy and Sell Side Analysts, and high net worth investors which follow companies with a similar profile
    to CEGX
	 	 	 	 
	 	I.	Provide
    a detailed description of each contact prior to each meeting. During the meetings and/or conference calls a member of MZHCI
    will be available to facilitate the correspondence and assist with due diligence. Management will be provided with a summary
    of feedback including MZHCI’s suggestions for improvements on both the context and delivery of the Company’s story.

 

DAYS
30-60

 

	 	A.	Target
    brokerage firms who hold conferences which would be applicable for CEGX. Establish a goal of having management present in
    at least 3 new conferences during the initial 1 year contract. These would be non-paid for and have high institutional attendance,
    in addition to high net worth investors. Additionally, MZHCI will seek opportunities to present to brokers directly at firms
    for both teach-ins and small events.
	 	 	 
	 	B.	Formalize
    a Press Release calendar (queue) for coming three months. Create and release accordingly to the market and simultaneously
    to current and prospective investors inboxes.
	 	 	 
	 	C.	Include
    CEGX where applicable in interviews with all financial online sites. Review and create media target list. Being to make introductions
    and follow-up.
	 	 	 
	 	D.	Include
    CEGX in all presentations where MZHCI representatives will speak on CEGX’s industry topics.
	 	 	 
	 	E.	Assist
    in bell ringing ceremony when major listing is complete.
	 	 	 
	 	F.	Continue
    outreach and road shows.

 

DAYS
60-90

 

	 	A.	Formalize
    and continually update the database to ensure that all press releases are e-mailed to all interested professionals.

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 4 of 8

    	 

    

 

 

 

	 	B.	Target
    newsletter editors and publishers for favorable recommendations. Focus on Business Publications for appropriate stories on
    CEGX product roll-out, unique carrier centric model, and key competitive advantages to investors and industry players. Follow-up
    accordingly with all interested parties with a goal of receiving a new piece of media coverage at least lx per quarter.
	 	 	 
	 	C.	Schedule
    and book out Road Shows.
	 	 	 
	 	D.	Conduct
    and host quarterly and annual earnings call. This will include full script creation, Q&A/FAQ compilation and practice.
    Incorporate feedback and key concepts into prepared remarks. Schedule the call, including webcast and generate a press release
    to notify shareholders of conference call (it should be released at least 7 days prior to call date). Call outs to maximize
    attendance and gather feedback to improve ongoing public correspondence.

 

ONGOING
- These services will be provided ongoing with a summary included in each quarterly update

 

	 	A.	Respond
    to all investor requests and calls in a timely manner to facilitate the distribution of corporate information. Focus on educating
    shareholders, with the premise that an informed investor will become a longer term investor.
	 	 	 
	 	B.	Formalize
    and continually update the database to ensure that all press releases are e-mailed to all interested professionals. This includes
    the input of notes to keep track of all investor correspondence and reminder calls to all investor prior to earnings conference
    calls.
	 	 	 
	 	C.	Provide
    consulting services to CEGX management on the public markets
	 	 	 
	 	D.	Provide
    progress reports to senior management and evaluate achievements with a monthly summary of activities and a detailed report
    every quarter.

 

Many
of the above items will occur simultaneously but certain items will have chronological priority over others. As CEGX grows, MZHCI
will recommend changes to the Agenda that complement its growth. As the Company continues to execute its strategic plan by winning
new customers and expanding its base of business we will target an expanded universe of institutional investors. At each stage
of growth, the appropriate approach to the market will be incorporated into the agenda for optimal results.

 

Assuming
that management’s efforts are leading ultimately to success and greater profitability, the end results of this financial
communication and awareness campaign should be:

 

	 	A.	An
increase in the number of financial professionals (including brokers, institutions and analysts) and individual investors well
educated and knowledgeable about CEGX: including senior management, the company’s products, and its current financial condition
& growth opportunities.
	 	 	 
	 	B.	An
    increase in the number of articles printed in both trade and financial publications.
	 	 	 
	 	C.	An
    increase in the liquidity of the common stock.
	 	 	 
	 	D.	An
    increase in CEGX market capitalization coupled with a broader, more diverse shareholder base.
	 	 	 
	 	E.	Suitable
    and better access to the capital markets, which will facilitate future acquisitions and working capital needs.

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 5 of 8

    	 

    

 

 

 

	III.	Term

 

This
Agreement becomes effective upon execution, and shall remain effective for a period of twelve (12) months from that date. After
the initial 1 year term, this Agreement shall automatically renew every twelve (12) months unless either party to the other delivers
written notice of termination at least sixty (60) days prior to the end of the then current agreement.

 

	IV.	Compensation

 

	Cash	$8,500
    per month, payable on the 1st day of each month. Monthly fee will be deferred until the Company closes on a $2.5M
    financing. Upon closing, the Company will pay the full amount that accrued and will pay monthly for the remainder of the contract.
	 	 
	Equity	The
    Company will issue 200,000 shares of restricted CEGX common stock to MZHCI, LLC within the first 10 days of the initial contract
    date.
	 	 
	Expense
    Reimbursement	Only
    expenses that would ordinarily be incurred by the Client will be billed back on a monthly basis. Applicable reimbursements
    would include: creation, printing and postage for investor packages, fees for news wire services. Any packages requiring additional
    photocopying/ printing will be billed back to the Client at cost (with no mark-up). Any extraordinary items, such as broker
    lunch presentations, air travel, hotel, ground transportation or media campaigns, etc. shall be paid by the Client, only with
    client authorization prior to incurring any expenses.

 

	V.	Prior
    Restriction

 

MZHCI
represent; to the Company that it is not subject to, or bound by, any agreement which sets forth or contains any provision, the
existence or enforcement of which would in any way restrict or hinder MZHCI from performing the services on behalf c f the Company
that MZHCI is herein agreeing to perform.

 

	VI.	Assignment

 

This
Agreement is personal to MZHCI and may not be assigned in any way by MZHCI without the prior written consent of the Company. Subject
to the foregoing, the rights and obligations under this Agreement shall inure to the benefit of, and shall be binding upon, the
heirs, legatees, successors and permitted assigns of MZHCI and upon the successors and assigns of the Company.

 

	VII.	Confidentiality

 

Except
as required by law or court order, MZHCI will keep confidential any trade secrets or confidential or proprietary information of
the Company which are now known to MZHCI or which hereinafter may become known to MZHCI and MZHCI shall lot at any time directly
or indirectly disclose or permit to be disclosed any such information to any person, firm, or corporation or other entity, or
use the same in any way other than in connection with the business of the Company and in any case only with prior written permission
of CEGX. For purposes of this Agreement, “trade secrets or confidential or proprietary information” includes information
unique to or about the Company including but not limited to its business and is not known or generally available to the public.

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 6 of 8

    	 

    

 

 

 

Any
confidential material held by Consultant will be returned to Company within one calendar month of the expiration or termination
of this agreement.

 

Any
confidential information should not be disclosed by Consultant for a period of five (5) years subsequent to the termination of
this agreement.

 

	VIII.	Default

 

	 	1.	Except
    for a claim or controversy arising under Section VIII of this Agreement, any claim or controversy arising under any of the
    provisions of this Agreement shall, at the election of either party hereto, be determined by arbitration in California in
    accordance with the rules of the American Arbitration Association. The decision of the Arbitrator shall be binding and conclusive
    upon the parties. Each party shall pay its own costs and expenses in any such arbitration. The prevailing party shall be entitled
    to reimbursement of all fees incurred, including attorney, filing, travel and anything associated with the arbitration.
	 	 	 
	 	2.	In
    the event that MZHCI commits any material breach of any provision of this Agreement, as determined by the Company in good
    faith, the Company may, by injunctive action, compel MZHCI to comply with, or restrain MZHCI from violating, such provision,
    and, in addition, and not in the alternative, the Company shall be entitled to declare MZHCI in default hereunder and to terminate
    this Agreement and any further payments hereunder.
	 	 	 
	 	3.	Since
    MZHCI must at all times rely upon the accuracy and completeness of information supplied to it by the Company’s officers,
    d rectors, agents, and employees, the Company agrees to indemnify, hold harmless, and defend MZHCI, its officers, agents,
    and employees at the Company’s expense, against any proceeding or suit which may arise out of and/or be due to any material
    misrepresentation in such information supplied by the Company to MZHCI (or any material omission by the Company that caused
    such supplied information to be materially misleading).
	 	 	 
	 	4.

         
	MZHCI
    agrees to indemnify, hold harmless and defend the Company, its officers, directors, employees and agents from and agents any
    and all claims, actions, proceedings, losses, liabilities, costs and expenses (including without limitation reasonable attorney’s
    fees) incurred by any of them in connection with, as a result of, and or due to any actions or inactions or misstatements
    by MZHCI, its officers, agents, or employees regarding or on behalf of the Company whether as a result of rendering services
    under this agreement or otherwise.

 

	IX.	Severability
    and Reformation

 

If
any provision o this Agreement is held to be illegal, invalid, or unenforceable under present or future law, such provision shall
be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision
were never a part hereof, and the remaining provisions shall remain in full force and shall not be affected by tie illegal, invalid,
or unenforceable provision, or by its severance; but in any such event this Agreement shall be construed to give effect to the
severed provision to the extent legally permissible.

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 7 of 8

    	 

    

  

 

 

	X	Notices

 

Any
notices required by this Agreement shall (i) be made in writing and delivered to the party to whom it is addressed by ha id delivery,
by certified mail, return receipt requested, with adequate postage prepaid, or by courier delivery service (including major overnight
delivery companies such as Federal Express), (ii) be deemed given when received, and (iii) in the case of the Company, be mailed
to its principal office at 6037 Franz Road Suite 103, Dublin, OH 43017, and in the case of MZHCI, be mailed to MZHCI, LLC, 5055
Avenida Encinas, Suite 130, Carlsbad, CA 92008.

 

	XI.	Miscellaneous

 

	 	1.	This
    Agreement may not be amended, except by a written instrument signed and delivered by each of the parties hereto.
	 	 	 
	 	2.	This
    Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof, and ail
    other agreements relating to the subject matter hereof are hereby superseded.
	 	 	 
	 	3.	This
    Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

In
Witness Whereof, the parties have executed this Consulting Agreement as of the day and year first above written.

 

	AGREED:	 	 	 
	 	 	 	 
	MZHCI,
    LLC 	 	Cardinal
    Energy Group
	 	 	 
	By:	/s/
    Ted Haberfield	 	By:	/s/
    Timothy W. Crawford
	 	Ted
    Haberfield, President	 	 	Timothy
    W. Crawford, CEO
	 	 	 	 	 
	Date:	12/14/13	 	Date:	12/14/2013

 

	 	MZHCI
    initial:			COMPANY
    initial:		

 

    	Page 8 of 8EXHIBIT 10-2

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT is entered into as of January 1, 2014 between Cardinal Energy Group, Inc., a Nevada corporation (the “Company”)
and Dave Rippy(“Executive”).

 

RECITAL

 

The
Company and Executive desire to enter into this Agreement to ensure the Company of the services of Executive, to provide for compensation
and other benefits to be paid and provided by the Company to Executive in connection therewith, and to set forth the rights and
duties of the parties in connection therewith.

 

NOW,
THEREFORE, in consideration of the mutual promises herein contained, the parties hereby agree as follows:

 

1. Title;
Directorship.

 

(a)
Title. The Company hereby employs Executive as Chief Operating Officer, and Executive hereby accepts such employment, on the terms
and conditions set forth herein. During the term of this Agreement, Executive shall be and have the title, duties and authority
of Chief Operating Officer of the Company and shall devote his entire business time and all reasonable efforts to his employment
and shall perform diligently such duties as are customarily performed by the Chief Operating Officer of companies the size and
structure of the Company, together with such other duties as may be reasonably required from time to time by the Chief Executive
Officer of the Company. Without limiting the generality of any of the foregoing, except as hereafter expressly agreed in writing
by Executive, Executive shall not be required to report to any party other than to the Chief Executive Officer of the Company.

 

2. Term.
Subject to the provisions for termination hereinafter provided, the term of this Agreement shall begin on the date hereof and
shall end at 11:59 p.m., local time, on December 31, 2015, provided, however, that the term of this Agreement shall automatically
renew for successive one year terms, unless Executive or the Company gives written notice to the other not less than one hundred
twenty (120) days prior to December 31, 2015 or the expiration of any such one-year term that he or it, as the case may be, is
electing not to so extend the term of this Agreement (the “Employment Period”). Notwithstanding the foregoing,
the term of this Agreement shall end on the date on which Executive’s employment is earlier terminated by him or the Company
in accordance with the provisions of Paragraph 7(a) below.

 

3. Outside
Interests. Executive shall not, without the prior written consent of the Company, directly or indirectly, during the term of this
Agreement, other than in the performance of duties naturally inherent to the business of the Company and in furtherance thereof,
render services of a business, professional or commercial nature to any other person or firm, whether for compensation or otherwise;
provided, however, that Executive may attend to outside investments, and serve as a director, trustee or officer of, or otherwise
participate in, educational, welfare, social, religious and civic organizations so long as such activities do not materially interfere
with his full-time employment hereunder.

 

4. Compensation.

 

(a)
Salary. For all services he may render to the Company during the term of this Agreement, the Company shall pay to Executive the
following salary in those installments customarily used in payment of salaries to the Company’s senior executives (but in
no event less frequently than monthly):

 

(i) for
calendar year 2014 a salary of One Hundred Fifty Thousand Dollars ($150,000);

 

    	 

    	 

    

 

 

(ii) for
calendar year 2015, a salary of One Hundred Seventy Five Thousand Dollars ($175,000);

 

(iii) for
the calendar year beginning on January 1, 2016, and for each calendar year thereafter during the term of this Agreement, a salary
determined by the Board of Directors, which in no event shall be less than the annual salary that was payable by the Company to
Executive under this Paragraph 4(a) for the immediately preceding calendar year.

 

(b)
Bonus. Executive shall be entitled to participate in any bonus program implemented by the Compensation Committee of the Board
of Directors for the Company’s senior executives generally, with pertinent terms and goals to be established annually or
otherwise by the Compensation Committee in its sole discretion.

 

(c)
Benefits. Executive shall be entitled, subject to the terms and conditions of the appropriate plans, to all benefits provided
by the Company to senior executives generally from time to time during the term of this Agreement.

 

(d)
Vacation. Executive shall be entitled to three (3) weeks of paid vacation per year, which cannot be carried over from year to
year without prior written approval from the CEO.

 

(e)
Automobile. Executive shall be entitled to use of a Company automobile and the Company shall provide automobile insurance therefor.

 

(f)
Medical/Health Insurance. The Company shall provide Executive with medical/health insurance.

 

(g)
Cell Phone. The Company shall provide Executive with a cell phone.

 

(h)
Business Expenses. Executive will be issued a Company credit card for payment of business expenses in furtherance of Executive’s
responsibilities and obligations under this Agreement. Executive shall deliver to the Company (no less than monthly or immediately
upon request by the Company) proper documentation for all such expenses and charges for all travel, hotel and business expenses
when incurred on Company business during the term of this Agreement.

 

(i)
Perquisites. Executive shall be entitled to such perquisites, including use of an automobile, as are provided by the Company to
senior executives generally from time to time during the term hereof.

 

5. Executive
Stock Awards Plan. During the term of this Agreement, Executive shall participate in any executive stock award plan the Company’s
may adopt.

 

6. Payment
in the Event of Death or Disability.

 

(a)
In the event of Executive’s death or Disability during the term of this Agreement, for a period equal to the lesser of (i)
twelve (12) months following the date of such death or Disability or (ii) the balance of the term that would have remained hereunder
at such date had Executive’s death or disability not occurred, the Company shall continue to pay to Executive (or his estate)
Executive’s then effective per annum rate of salary, as determined under Paragraph 4(a), and provide to Executive (or to
his family members covered under his family medical coverage) the same family medical coverage as provided to Executive on the
date of such death or Disability.

 

(b)
Except as otherwise provided in Paragraph 6(a), in the event of Executive’s death or Disability Executive’s employment
hereunder shall terminate and Executive shall be entitled to no further compensation or other payments or benefits under this
Agreement, except as to any unpaid salary, bonus, or benefits accrued and earned by him up to and including the date of such death
or Disability.

 

    	2

    	 

    

  

(c)
For purposes of this Agreement, Executive’s Disability shall be deemed to have occurred after one hundred fifty (150) days
in the aggregate during any consecutive twelve (12) month period, or after ninety (90) consecutive days, during which one hundred
fifty (150) or ninety (90) days, as the case may be, Executive, by reason of his physical or mental disability or illness, shall
have been unable to discharge his duties hereunder. The date of Disability shall be such one hundred fiftieth (150th) or ninetieth
(90th) day, as the case may be. If the Company or Executive, after receipt of notice of Executive’s Disability from the
other, dispute that Executive’s Disability shall have occurred, Executive shall promptly submit to a physical examination
by the chief of medicine of any major accredited hospital selected by the Company and, unless such physician shall issue his written
statement to the effect that in his or her opinion, based on his or her diagnosis, Executive is capable of resuming his employment
and devoting his full time and energy to discharging his duties within thirty (30) days after the date of such statement, such
Disability shall be deemed to have occurred.

 

(d)
The payments to be made by the Company to Executive hereunder shall be offset and reduced by the amount of any insurance proceeds
(on a tax-effected basis) paid to Executive (or his estate) from insurance policies obtained by the Company other than insurance
policies provided under Company-wide employee benefit and welfare plans.

 

7. Termination.

 

(a)
The employment of Executive under this Agreement:

 

(i) shall
be terminated automatically upon the death or Disability of Executive;

 

(ii) may
be terminated for Cause at any time by the Company, with any such termination not being in limitation of any other right or remedy
the Company may have under this Agreement or otherwise;

 

(iii) may
be terminated at any time by the Company without Cause with 30 days’ advance notice to Executive;

 

(iv) may
be terminated at any time by Executive with thirty (30) days’ advance notice to the Company, and shall be terminated automatically
if Executive does not accept assumption of this Agreement by, or an offer of employment from, a purchaser of all or substantially
all of the assets of the Company; or

 

(v) may
be terminated at any time by Executive if the Company materially breaches this Agreement and fails to cure such breach within
thirty (30) days of written notice of such breach from Executive, provided that Executive has given notice of such breach within
ninety (90) days after he has knowledge thereof and the Company did not have Cause to terminate Executive at the time such breach
occurred.

 

(b)
Upon any termination hereunder, Executive shall be deemed automatically to have resigned from all offices and any directorship
held by him in the Company, unless the Company informs Executive otherwise.

 

(c)
Executive’s employment with the Company for all purposes shall be deemed to have terminated as of the effective date of
such termination hereunder (the “Date of Termination”), irrespective of whether the Company has a continuing obligation
under this Agreement to make payments or provide benefits to Executive after such date.

 

8. Certain
Termination Payments.

 

(a)
If Executive’s employment with the Company is terminated by the Company without Cause or by Executive pursuant to Paragraph
7(a)(v), in either case other than within two years after a Change in Control, the Company shall (i) continue to pay to Executive
the per annum rate of salary then in effect under Paragraph 4(a) and provide him and his family with the benefits described in
Paragraph 4 then in effect (unless the terms of the applicable plans expressly prohibit the continuation of such benefits after
such termination and cannot be amended, with applicability of such amendment limited to Executive, to provide for such continuation,
in which case the Company shall procure and pay for substantially similar substitute benefits except for any pension or 401(k)
Plan benefit) for the balance of the term that would have remained hereunder had such termination not occurred.

 

    	3

    	 

    

  

(b)
If Executive’s employment is terminated by the Company with Cause or is terminated pursuant to Paragraph 7(a)(iv), Executive
shall be entitled to no further compensation or other payments or benefits under this Agreement, except as to that portion of
any unpaid salary and benefits accrued and earned by him under Paragraph 4 up to and including the Date of Termination.

 

9. Definitions.

 

(a)
“Beneficial Owner” shall have the meaning provided in Rule 13d-3 promulgated under the Exchange Act.

 

(b)
“Cause” means:

 

(i) Executive’s
conviction of, or plea of “no contest” to, a felony;

 

(ii) Executive’s
willfully engaging in an act or series of acts of gross misconduct that result in demonstrable and material injury to the Company;
or

 

(iii) Executive’s
material breach of any provision of this Agreement, which breach has not been cured in all material respects within twenty (20)
days after the Company gives notice thereof to Executive.

 

(c)
“Person” shall have the meaning provided in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and as used in Sections 13(d) and 14(d) thereof, and shall include a “group” (as defined
in Section 13(d) of the Exchange Act).

 

10. Certain
Covenants

 

(a)
Noncompete and Nonsolicitation. Executive acknowledges the Company’s reliance on and expectation of Executive’s continued
commitment to performance of his duties and responsibilities during the term of this Agreement. In light of such reliance and
expectation, during the term hereof and for two (2) years after termination of Executive’s employment and this Agreement
under Paragraph 7 hereof, other than termination by the Company without Cause or termination by Executive pursuant to Paragraph
7(a)(v), Executive shall not, directly or indirectly, do or suffer any of the following:

 

(i) Own,
manage, control or participate in the ownership, management, or control of, or be employed or engaged by or otherwise affiliated
or associated as a consultant, independent contractor or otherwise with, any corporation, partnership, proprietorship, firm, association
or other business entity, or otherwise engage in any business, which is in competition with the business of the Company as and
where conducted by it at the time of such termination; provided, however, that the ownership of not more than five percent (5%)
of any class of publicly traded securities of any entity shall not be deemed a violation of this covenant (the restrictions set
forth in this subsection 10(a)(i) shall not apply to Executive’s pre-existing interest in Bakersfield Drilling Consultants,
Inc. (BDC). Nothing in this Agreement shall be interpreted as requiring Executive to forfeit any interest in BDC.

 

    	4

    	 

    

 

 

(ii)
Solicit the employment of, assist in the soliciting the employment of, or otherwise solicit the association in business with any
person or entity of, any employee, consultant or agent of the Company; or

 

(iii) Induce
any person who is a customer of the Company to terminate said relationship.

 

(b)
Nondisclosure; Return of Materials. During the term of his employment by the Company and following termination of such employment,
Executive will not disclose (except as required by his duties to the Company), any concept, design, process, technology, trade
secret, customer list, plan, embodiment or invention, any other intellectual property (“Intellectual Property”) or
any other confidential information, whether patentable or not, of Company of which Executive becomes informed or aware during
his employment, whether or not developed by Executive. In the event of the termination of his employment with the Company or the
expiration of this Agreement, Executive will return to the Company all documents, data and other materials of whatever nature,
including, without limitation, drawings, specifications, research, reports, embodiments, software and manuals that pertain to
his employment with the Company or to any Intellectual Property and shall not retain or cause or allow any third party to retain
photocopies or other reproductions of the foregoing.

 

(c)
Executive expressly agrees and understands that the remedy at law for any breach by him of this Paragraph 10 may be inadequate
and that the damages flowing from such breach are not easily measured in monetary terms. Accordingly, it is acknowledged that,
upon adequate proof of Executive’s violation of any provision of this Paragraph 10, the Company shall be entitled to immediate
injunctive relief and may obtain a temporary order restraining any threatened or further breach and may withhold any amounts owed
to Executive pursuant to this Agreement. Nothing in this Paragraph 10 shall be deemed to limit the Company’s remedies at
law or in equity for any breach by Executive of any of the provisions of this Paragraph 10 that may be pursued by the Company.

 

(d)
If Executive shall violate any legally enforceable provision of this Paragraph 10 as to which there is a specific time period
during which he is prohibited from taking certain actions or from engaging in certain activities, as set forth in such provision,
then, in such event, such violation shall toll the running of such time period from the date of such violation until such violation
shall cease.

 

(e)
Executive has carefully considered the nature and extent of the restrictions upon him and the rights and remedies conferred upon
the Company under this Paragraph 10, and hereby acknowledges and agrees that the same are reasonable in time and territory, are
designed to eliminate competition that otherwise would be unfair to the Company, do not stifle the inherent skill and experience
of Executive, would not operate as a bar to Executive’s sole means of support, are fully required to protect the legitimate
interests of the Company and do not confer a benefit upon the Company disproportionate to the detriment to Executive.

 

11. Withholding
Taxes. All payments to Executive hereunder shall be subject to withholding on account of federal, state and local taxes as required
by law.

 

12. No
Conflicting Agreements. Executive represents and warrants that he is not a party to any agreement, contract or understanding,
whether an employment contract or otherwise, that would restrict or prohibit him from undertaking or performing employment in
accordance with the terms and conditions of this Agreement.

 

13. Severable
Provisions. The provisions of this Agreement are severable and if any one or more of its provisions is determined to be illegal
or otherwise unenforceable, in whole or in part, the remaining provisions and any partially unenforceable provision to the extent
enforceable in any jurisdiction nevertheless shall be binding and enforceable.

 

    	5

    	 

    

  

14. Binding
Agreement. The rights and obligations of the Company under this Agreement shall inure to the benefit of, and shall be binding
on, the Company and its successors and assigns, and the rights and obligations (other than obligations to perform services) of
Executive under this Agreement shall inure to the benefit of, and shall be binding upon, Executive and his heirs, personal and
legal representatives, executors, successors and administrators. The Company may assign this Agreement to a purchaser (or an affiliate
of a purchaser) of all or substantially all the assets of the Company. As used in this Agreement, the “Company” shall
mean the Company as hereinbefore defined and any successor or assign to its assets as aforesaid that becomes bound by all the
terms and provisions of this Agreement. If the Executive should die while any amounts are still payable to him, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee,
legatee, or other designee or, if there be no such designee, to the Executive’s estate.

 

15. Notices.
Notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when sent by certified
mail, postage prepaid, addressed to the intended recipient at the address set forth at the end of this Agreement, or at such other
address as such intended recipient hereafter may have designated most recently to the other party hereto with specific reference
to this Paragraph 15.

 

16. Consent
to Jurisdiction. Executive and the Company each irrevocably: (i) submits to the exclusive jurisdiction of the Ohio courts and
the United States district court(s) in Ohio for the purpose of any proceedings arising out of this Agreement or any transaction
contemplated by this Agreement; (ii) agrees not to commence such proceeding except in these courts; (iii) agrees that service
of any process, summons, notice or document by U.S. registered mail to a party’s address as provided herein shall be effective
service of process for any such proceeding; and (iv) waives any objection to the laying of venue of any such proceeding in these
courts.

 

17. Waiver
of Jury Trial. Each party waives, to the fullest extent permitted by law, any right he or it may have to a trial by jury in respect
of any suit, action or proceeding arising out of this Agreement or any transaction contemplated by this Agreement. Each party
certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other
party would not, in the event of litigation, seek to enforce this waiver; and acknowledges that he or it and the other party have
been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Paragraph 17.

 

18. Waiver.
The failure of either party to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such
provision as to any future violation thereof, or prevent that party thereafter from enforcing each and every other provision of
this Agreement. The rights granted the parties herein are cumulative and the waiver of any single remedy shall not constitute
a waiver of such party’s right to assert all other legal remedies available to it under the circumstances.

 

19. Miscellaneous.
This Agreement supersedes all prior agreements and understandings between the parties. This Agreement may not be modified or terminated
orally. All obligations and liabilities of each party hereto in favor of the other party hereto relating to matters arising prior
to the date hereof have been fully satisfied, paid and discharge. No modification, termination or attempted waiver shall be valid
unless in writing and signed by the party against whom the same is sought to be enforced.

 

20. Governing
Law. This Agreement shall be governed by and construed according to the laws of the State of Ohio.

 

    	6

    	 

    

  

21. Captions
and Paragraph Headings. Captions and paragraph headings used herein are for convenience and are not a part of this Agreement and
shall not be used in construing it.

 

22. Enforcement
Costs. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute,
breach, default or misrepresentation in connection with any provision of this Agreement, the successful or prevailing party or
parties shall be entitled to recover reasonable attorneys’ fees, court costs and all expenses even if not taxable as court
costs (including, without limitation, all such fees, costs and expenses incident to arbitration, appellate, bankruptcy and post-judgment
proceedings), incurred in that action or proceeding, in addition to any other relief to which such party or parties may be entitled.

 

23. Rejection
of Benefits. If Executive chooses not to accept any benefits offered by the Company herein, the Company shall not reimburse the
Executive for any such benefit or provide a cash equivalent in lieu of providing such benefit.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement on the day and year first set forth above

 

	Cardinal
    Energy Group, Inc.:	 
	 	 	 
	By:	 	 
	Name:	Timothy
    W. Crawford	 
	Title:	CEO
    / President	 
	Date:	January
    1, 2014	 
	 	 
	 	 
	Dave Rippy	 
	 	 	 
	Date:	                    
    , 2014	 

 

    	7

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