Document:

Unassociated Document

     

    Exhibit
      10.1

    

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement (the “Agreement”)
      is
      entered into as of the 13th day of May 2008, by and between La Cortez Energy,
      Inc., a Nevada corporation, with a business address of 1266 1st
      Street,
      Suite 4, Sarasota, FL 34236 (the “Company”),
      and
      Andres Gutierrez Rivera, an individual with a residence address of Calle ----
      No
      8-41, Apt 401, Bogota, Colombia (the “Executive”).

    

    INTRODUCTION

     

    WHEREAS,
      the Company is in the oil and gas exploration business (the
“Business”);

     

    WHEREAS,
      the Company wishes to employ the Executive as its President and Chief Executive
      Officer pursuant to the terms and conditions set forth herein; and

     

    WHEREAS,
      the Executive desires to be employed by the Company pursuant to the terms and
      conditions set forth herein.

     

    AGREEMENT

     

    NOW,
      THEREFORE, In consideration of the premises and mutual promises herein below
      set
      forth, the parties hereby agree as follows:

    

    1.    Employment
      Period.
      The
      term of the Executive’s employment by the Company pursuant to this Agreement
      (the “Employment
      Period”)
      shall
      commence upon receipt of written notice of commencement from the Executive
      to be
      received by the Company no later than thirty (30) days from the date hereof
      (the
“Effective Date”) and shall continue for a period of one year from the Effective
      Date. Thereafter, the Employment Period shall automatically renew for successive
      periods of one (1) year, unless either party shall have given to the other
      at
      least thirty (30) days’ prior written notice of their intention not to renew the
      Executive’s employment prior to the end of the Employment Period or the then
      applicable renewal term, as the case may be. In any event, the Employment Period
      may be terminated as provided herein.

     

    2.    Employment;
      Duties.
      

     

    (a)    General.
      Subject
      to the terms and conditions set forth herein, the Company hereby employs the
      Executive to act as the President and Chief Executive Officer of the Company
      during the Employment Period, and the Executive hereby accepts such employment.
      The duties assigned and authority granted to the Executive shall be as
      determined by the Company’s Board of Directors (the “Board”)
      from
      time to time. The Executive agrees to perform his duties for the Company
      diligently, competently, and in a good faith manner and to use his best efforts
      to promote and serve the best interests of the Company. The Executive will
      also
      serve as a member of the Company’s Board.

     

    (b)    Exclusive
      Services.
      The
      Executive shall devote substantially all of his working time and efforts during
      the Company's normal business hours to the business and affairs of the Company
      and its subsidiaries, including its subsidiary in Bogota, Colombia, La Cortez
      Energy Colombia E.U. (the “Colombia Subsidiary”, and together with any other
      subsidiaries and/ or affiliates of the Company, the “Affiliates”), and to the
      diligent and faithful performance of the duties and responsibilities duly
      assigned to him by the Board pursuant to this Agreement. However, Executive
      may
      devote a reasonable amount of his time to civic, community, or charitable
      activities and may serve as a director of other corporations (provided that
      any
      such other corporation is not a competitor of the Company, as determined by
      the
      Board) and to other types of business or public activities not expressly
      mentioned in this paragraph. Additionally, Executive may participate as a
      director and/or investor in that certain ethanol project as described by
      Executive to the Board (the “Ethanol Project”), so long as Executive’s
      responsibilities with respect to the Ethanol project do not conflict or
      interfere with the faithful performance of his duties to the Company.

     

    
      
        
        

      

      
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    (c)    Place
      of Employment. It
      is
      acknowledged that the Executive's services shall be performed primarily at
      the
      offices of the Colombia Subsidiary, in Bogota, Colombia. The parties
      acknowledge, however, that Executive may be required to travel in connection
      with the performance of his duties hereunder.

     

    3.    Base
      Salary. The
      Executive shall be entitled to receive a salary from the Company during the
      Employment Period at the rate of Two Hundred Fifty Thousand ($250,000) per
      year
      (the “Base
      Salary”),
      payable in substantially monthly installments in accordance with the Company’s
      customary payroll practices. Beginning on the anniversary of the Effective
      Date,
      the Executive’s Base Salary may be increased on each anniversary of the
      Effective Date, at the Board’s sole discretion. The parties expressly agree that
      what the Executive receives now or in the future, in addition to his regular
      Base Salary, whether this be in the form of benefits or regular or occasional
      aid/assistance, such as recreation, club memberships, meals, education for
      him
      or his family, extralegal health benefits, vehicle, lodging or clothing,
      occasional bonuses or anything else he receives, during the Employment Period
      and any renewals thereof, in cash or in kind, shall not be deemed as salary.
      Additionally, the Base salary is “Integral” under the labor laws of Colombia.

     

    4.    Bonus. The
      Executive shall be eligible to receive an annual cash bonus (the ”Annual Bonus”)
      of up to fifty percent (50%) of the then applicable Base Salary, payable in
      U.S.
      dollars within ten (10) days of the filing with the Securities and Exchange
      Commission of the Company’s annual report on Form 10-K. The Executive’s Annual
      Bonus (if any) shall be in such amount (up to the limit stated above) as the
      Board may determine in its sole discretion, based upon the Executive’s
      achievement of certain performance milestones to be established annually by
      the
      Board in discussion with the Executive (the “Milestones”). For the initial
      Employment Period, in the event the Board and the Executive are unable to agree
      to Milestones acceptable to both the Board and the Executive, the amount of
      the
      Executive’s bonus shall be determined by the Board on a discretionary basis. The
      Executive shall be eligible to participate in any other bonus or incentive
      program established by the Company for executives of the Company.

     

    5.    Stock
      Options.
      

     

    (a)    Grant
      of
      Options. As
      of the Effective Date, the
      Company shall grant the Executive an option to purchase an aggregate of
      1,000,000 shares of the Company’s common stock (“Options”) under the Company’s
      2008 Equity Incentive Plan (the “2008 Plan”). Such grant shall be evidenced by
      an Option Agreement issued by the Company as contemplated by the 2008 Plan
      and
      approved by the Board. In subsequent years the Executive shall be eligible
      for
      such grants of Options and/or other permissible awards under the 2008 Plan
      as
      the Compensation Committee of the Company, if any, or the Board shall
      determine.

     

    (b)    Option
      Price; Term. The
      per share exercise price of
      the Options shall be the fair market closing price per share of Company common
      stock on the date of grant. The term of the Option (i.e., the length of time
      during which the Option may be exercised) shall be ten years from the date
      of
      grant.

     

     

    (c)    Exercise. One
      third of the shares of the
      Options shall become exercisable on each anniversary of the date of grant (with
      333,334 shares becoming eligible for exercise on the first anniversary of the
      date of grant, an additional 333,333 shares becoming eligible for exercise
      on
      the second anniversary of the date of grant and the final 333,333 shares
      becoming eligible for exercise on the third anniversary of the date of
      grant).

     

    
      
        
        

      

      
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    (d)    Payment. The
      full consideration for any
      shares purchased by the Executive upon exercise of the Options shall be paid
      in
      cash.

     

    (e)    Termination
      of
      Employment; Accelerated Vesting.
      

     

    (i)    If
      the
      Executive’s employment is terminated for Cause, as such term is defined below,
      all Options, whether or not vested, shall immediately expire effective as of
      the
      date of termination of employment. 

     

    (ii)    If
      the
      Executive’s employment is terminated voluntarily by the Executive without Good
      Reason, as such term is defined below, all unvested Options shall immediately
      expire effective the date of termination of employment. Vested Options, to
      the
      extent unexercised, shall expire one month after the termination of
      employment.

     

    (iii)    If
      the
      Executive’s employment terminates on account of death or Disability, as defined
      below, all unvested Options shall immediately expire effective the date of
      termination of employment. Vested Options, to the extent unexercised, shall
      expire nine months after the termination of employment.

     

    (iv)    If
      the
      Executive’s employment is terminated (A) in connection with a Change of Control,
      as defined below, (B) by the Company without Cause within 12 months of the
      Effective Date or (C) by the Executive for Good Reason, all unvested Options
      shall immediately vest and become exercisable effective the date of termination
      of employment, and, to the extent unexercised, shall expire nine months after
      any such event. These acceleration and expiration provisions shall not apply
      with respect to a Change of Control following which the Executive remains
      President or Chief Executive Officer or continues to perform functions and
      be
      responsible for duties significantly and substantially similar to those of
      one
      or both of those positions.

    

    (f)    Change
      of Control. For
      purposes of this Agreement, “Change of Control” means the occurrence of, or a
      Board vote to approve, any of the following:

     

    (i)    any
      consolidation or merger of the Company pursuant to which the stockholders of
      the
      Company immediately before the transaction do not retain immediately after
      the
      transaction, in substantially the same proportions as their ownership of shares
      of the Company’s voting stock immediately before the transaction, direct or
      indirect beneficial ownership of more than 50% of the total combined voting
      power of the outstanding voting securities of the surviving business
      entity;

     

    (ii)    any
      sale,
      lease, exchange or other transfer (in one transaction or a series of related
      transactions) of all, or substantially all, of the assets of the Company other
      than any sale, lease, exchange or other transfer to any company where the
      Company owns, directly or indirectly, 100% of the outstanding voting securities
      of such company after any such transfer; or 

     

    (iii)    the
      direct or indirect sale or exchange in a single or series of related
      transactions by the stockholders of the Company of more than 50% of the voting
      stock of the Company.

     

    
      
        
        

      

      
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    6.    Other
      Benefits

     

    (a)    Insurance
      and Other Benefits.
      During
      the Employment Period, the Executive shall be entitled to participate in the
      Company’s insurance programs and any ERISA benefit plans, as the same may be
      adopted and/or amended from time to time (the “Benefits”).
      The
      Executive shall be entitled to paid personal days on a basis consistent with
      the
      Company’s other senior executives, as determined by the Board. The Executive
      shall be bound by all of the policies and procedures established by the Company
      from time to time. However, in case any of those policies conflict with the
      terms of this Agreement, the terms of this Agreement shall control.

     

    (b)    Vacation.
      During
      the Employment Period, the Executive shall be entitled to an annual vacation
      of
      such duration consistent with the Company’s policies from time to time, as
      determined by the Board.

     

    (c)    Expense
      Reimbursement.
      The
      Company shall reimburse the Executive for all reasonable business, promotional,
      travel and entertainment expenses ("Reimbursable Expenses") incurred or paid
      by
      him during
      the Employment Period in the performance of his services
      under this Agreement, provided that the Executive furnishes to the Company
      appropriate documentation required by the Internal Revenue Code in a timely
      fashion in connection with such expenses and shall furnish such other
      documentation and accounting as the Company may from time to time reasonably
      request.

     

    7.    Termination;
      Compensation Due Upon Termination of Employment.
      The
      Executive's employment hereunder may terminate as provided in paragraphs (a)
      through (e) below. The Executive’s right to compensation for periods after the
      date his employment
      with the Company terminates shall be determined in accordance with the
      provisions of paragraphs (a) through (e) below:

     

    (a)    Voluntary
      Resignation; Termination without Cause.
      

     

    (i)    Voluntary
      Resignation. The
      Executive may terminate his employment
      at any time upon thirty (30) days prior written notice to the Company. In the
      event of the Executive's voluntary termination of employment other than for
      Good
      Reason (as defined below), the Company shall have no obligation to make payments
      to the Executive in accordance with the provisions of Sections 3 or 4, except
      as
      otherwise required by this Agreement or by Colombia or U.S. law, to provide
      the
      benefits described in Section 6, for periods after the date on which the
      Executive's employment with the Company terminates due to the Executive 's
      voluntary resignation, except for the payment of the Executive’s Base Salary
      accrued through the date of such resignation. 

     

    (ii)    Termination
      without Cause. 

    

    (A)    If
      the
      Executive’s employment is terminated by the Company without Cause at any time
      during the twelve month period commencing on the Effective Date, the Company
      shall (x) continue to pay the Executive the Base Salary (at the rate in effect
      on the date the Executive’s employment is terminated) until the end of the
      Severance Period (as defined in Section 7(e) below), (y) to the extent the
      Milestones are achieved or, in the absence of Milestones, the Board has, in
      its
      sole discretion, otherwise determined an amount for the Executive’s bonus for
      the initial Employment Period, pay the Executive a pro rata portion of his
      Annual Bonus for the initial Employment Period on the date such Annual Bonus
      would have been payable to the Executive had he remained employed by the
      Company, and (z) pay any other accrued compensation and Benefits. The Executive
      shall have no further rights under this Agreement or otherwise to receive any
      other compensation or benefits after such termination of employment.

    

    (B)    If,
      following
      a termination of employment without Cause, the Executive breaches the provisions
      of Sections 8 through 9 hereof, the Executive shall not be eligible, as of
      the date of such breach, for the payments and benefits described in
      Section 7(a)(ii), and any and all obligations and agreements of the Company
      with respect to such payments shall thereupon cease. 

     

    
      
        
        

      

      
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    (b)    Discharge
      for Cause.
      Upon
      (i) written notice to the Executive, the Company may terminate the Executive’s
      employment for “Cause” if any of the following events shall occur:

     

    (i)    any
      act
      or omission that constitutes a material breach by the Executive of any of his
      obligations under this Agreement;

     

    (ii)    the
      willful and continued failure or refusal of the Executive to satisfactorily
      perform the duties reasonably required of him as an employee of the
      Company;

     

    (iii)    the
      Executive’s conviction of, or plea of nolo
      contendere
      to,
      (i) any felony or (ii) a crime involving dishonesty or moral turpitude
      or which could reflect negatively upon the Company or otherwise impair or impede
      its operations;

     

    (iv)    the
      Executive’s engaging in any misconduct, negligence, act of dishonesty
      (including, without limitation, theft or embezzlement), violence, threat of
      violence or any activity that could result in any violation of federal
      securities laws, in each case, that is injurious to the Company or any of its
      subsidiaries or affiliates;

     

    (v)    the
      Executive’s material breach of a written policy of the Company or the rules of
      any governmental or regulatory body applicable to the Company;
      

     

    (vi)    the
      Executive’s refusal to follow the directions of the Board; 

     

    (vii)    any
      other
      willful misconduct by the Executive which is materially injurious to the
      financial condition or business reputation of the Company or any of its
      subsidiaries or affiliates,
      or

     

    (viii)    the
      Executive’s breach of his obligations
      under Section 8 or Section 9.

     

    In
      the
      event Executive is terminated for Cause, the Company shall have no obligation
      to
      make payments to Executive in accordance with the provisions of Sections 3
      or 4,
      or, except as otherwise required by law, to provide the benefits described
      in
      Section 5, for periods after the Executive's employment with the Company is
      terminated on account of the Executive's discharge for Cause except for the
      Executive’s then applicable Base Salary accrued through the date of such
      termination.

     

    (c)    Disability. The
      Company shall have the right, but shall not be obligated to terminate the
      Executive's employment hereunder in the event the Executive becomes disabled
      such that he is
      unable
      to discharge his duties
      to
      the Company for a period of ninety (90) consecutive days or one hundred twenty
      (120) days in any one hundred eighty (180) consecutive day period, provided
      longer periods are not required under applicable Colombian labor regulations
      (a
      "Permanent
      Disability").
      In
      the event of a termination of employment due to a Permanent Disability, then
      the
      Company shall be obligated to continue to make payments to the Executive in an
      amount equal to Executive’s then applicable Base Salary for the Severance Period
      (as defined below), payable in the form of salary continuation for the
      applicable Severance Period after the Executive’s employment with the Company is
      terminated due to a Permanent Disability. A determination of a Permanent
      Disability shall be made by a physician satisfactory to both the Executive
      and
      the Company; provided,
      however,
      that if
      the Executive and the Company do not agree on a physician, the Executive and
      the
      Company shall each select a physician and those two physicians together shall
      select a third physician, whose determination as to a Permanent Disability
      shall
      be binding on all parties.

     

    
      
        
        

      

      
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    (d)    Death. The
      Executive's employment hereunder shall terminate upon the death of the
      Executive. The Company shall have no obligation to make payments to the
      Executive in accordance with the provisions of Sections 3 or 4, or, except
      as
      otherwise required by law or the terms of any applicable benefit plan, to
      provide the benefits described in Section 6, for periods after the date of
      the
      Executive's death except for then applicable Base Salary earned and accrued
      through the date of death, payable to the Executive's beneficiary, as the
      Executive shall have indicated in writing to the Company (or if no such
      beneficiary has been designated, to Executive’s estate).

     

    (e)    Termination
      for Good Reason.
      The
      Executive may terminate this Agreement at any time for Good Reason. In the
      event
      of termination under this Section 7(e), Company shall pay to the Executive
      severance in an amount equal to the Executive’s then applicable Base Salary for
      a period equal to 12 months (the “Severance
      Period”),
      subject to the Executive’s continued compliance with Sections 8 and 9 of this
      Agreement, payable in the form of salary continuation for the applicable
      Severance Period following the Executive’s termination, and subject to the
      Company’s regular payroll practices and required withholdings. Such severance
      shall be reduced by any cash remuneration paid to the Executive because of
      the
      Executive’s employment or self-employment during the Severance Period. The
      Executive shall continue to receive all Benefits during the Severance Period.
      The
      Executive shall have no further rights under this Agreement or otherwise to
      receive any other compensation or benefits after such resignation.
      For the
      purposes of this Agreement, “Good Reason” shall mean any of the following
      (without Executive’s express written consent): 

     

    (i)    the
      assignment to the Executive of duties that are significantly different from,
      and
      that result in a substantial diminution of, the duties that he assumed on the
      Effective Date (except with respect to the diminution of duties relating to
      the
      function of President, it being understood by the Executive that the Company
      intends to hire an additional employee to serve in that capacity);

    

    (ii)    removal
      of
      the Executive from his position as Chief Executive
      Officer, or the assignment to the Executive of duties that are significantly
      different from, and that result in a substantial diminution of, the duties
      that
      he assumed as Chief Executive
      Officer, within twelve (12) months after a Change of Control (as defined above);
      

    

    (iii)    a
      reduction
      by the Company in the Executive’s then applicable Base Salary or other
      compensation, unless said reduction is pari passu with other senior executives
      of the Company; 

    

    (iv)    the
      taking of
      any action by the Company that would, directly or indirectly, materially reduce
      the Executive’s benefits, unless said reductions are pari passu with other
      senior executives of the Company; or 

    

    (v)    a
      breach by
      the Company of any material term of this Agreement that is not cured by the
      Company within 30 days following receipt by the Company of written notice
      thereof.

     

    (f)    Notice
      of Termination. Any
      termination of employment by the Company or the Executive shall be communicated
      by a written ‘‘Notice of Termination’’ to the other party hereto given in
      accordance with Section 14 of this Agreement. In the event of a termination
      by the Company for Cause, the Notice of Termination shall (i) indicate the
      specific termination provision in this Agreement relied upon, (ii) set
      forth in reasonable detail the facts and circumstances claimed to provide a
      basis for termination of the Executive’s employment under the provision so
      indicated and (iii) specify the date of termination, which date shall be
      the date of such notice. The failure by the Executive or the Company to set
      forth in the Notice of Termination any fact or circumstance which contributes
      to
      a showing of Cause shall not waive any right of the Executive or the Company,
      respectively, hereunder or preclude the Executive or the Company, respectively,
      from asserting such fact or circumstance in enforcing the Executive’s or the
      Company’s rights hereunder. 

    

    
      
        
        

      

      
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    (g)    Resignation
      from Directorships and Officerships. The
      termination of the Executive’s employment for any reason will constitute the
      Executive’s resignation from (i) any director, officer or employee position
      the Executive has with the Company or any of its Affiliates, including the
      Colombia Subsidiary, and (ii) all fiduciary positions (including as a
      trustee) the Executive holds with respect to any employee benefit plans or
      trusts established by the Company. The Executive agrees that this Agreement
      shall serve as written notice of resignation in this circumstance, unless
      otherwise required by any plan or applicable law. 

    

    8.    Non-Competition;
      Non-Solicitation.
      

     

    (a)    Unless
      the Executive terminates this Agreement pursuant to Section 7(a) or the Company
      terminates the Executive’s employment for Cause, for the duration of the
      Employment Period and during the Severance Period (the “Non-compete
      Period”),
      the
      Executive shall not, directly or indirectly engage or invest in, own, manage,
      operate, finance, control or participate in the ownership, management,
      operation, financing, or control of, be employed by, associated with, or in
      any
      manner connected with, lend any credit to, or render services or advice to,
      any
      business, firm, corporation, partnership, association, joint venture or other
      entity that engages or conducts any business the same as or substantially
      similar to the Business or currently proposed to be engaged in or conducted
      by
      the Company and/or any of its Affiliates, including the Colombia Subsidiary,
      in
      South America or included in the future strategic plan of the Business, anywhere
      within the United States of America or South America; provided,
      however,
      that the
      Executive may own less than 5% of the outstanding shares of any class of
      securities of any enterprise (but without otherwise participating in the
      activities of such enterprise) including those engaged in the oil and gas
      business, other than any such enterprise with which the Company competes or
      is
      currently engaged in a joint venture, if such securities are listed on any
      national or regional securities exchange or have been registered under Section
      12(g) of the Securities Exchange Act of 1934, as amended;

     

    (b)    During
      the Employment Period and for a period of 12 months following termination of
      the
      Executive’s employment with the Company, the Executive shall not:

     

    (i)    solicit
      or
      hire, or attempt to recruit, solicit or hire, any employee, or independent
      contractor of the Company, or its Affiliates, including the Colombia Subsidiary,
      to leave the employment (or independent contractor relationship) thereof,
      whether or not any such employee or independent contractor is party to an
      employment agreement; or

     

    (ii)    attempt
      in
      any manner to solicit or accept from any customer of the Company or any of
      its
      Affiliates, including the Colombia Subsidiary, with whom the Company or any
      of
      its Affiliates had significant contact during the term of the Agreement,
      business of the kind or competitive with the business done by the Company or
      any
      of its Affiliates with such customer or to persuade or attempt to persuade
      any
      such customer to cease to do business or to reduce the amount of business which
      such customer has customarily done or is reasonably expected to do with the
      Company or any of its Affiliates or if any such customer elects to move its
      business to a person other than the Company or any of its Affiliates, provide
      any services (of the kind or competitive with the Business of the Company or
      any
      of its Affiliates) for such customer, or have any discussions regarding any
      such
      service with such customer, on behalf of such other person.

     

    
      
        
        

      

      
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    The
      Executive recognizes and agrees that because a violation by him of
      his obligations
      under this Section 8 will cause irreparable harm to the Company that would
      be
      difficult to quantify and for which money damages would be inadequate, the
      Company shall have the right to injunctive relief to prevent or restrain any
      such violation, without the necessity of posting a bond. The Non-compete Period
      will be extended by the duration of any violation by the Executive of any of
      his obligations
      under this Section 8.

     

    The
      Executive expressly agrees that the character, duration and scope of the
      covenant not to compete are reasonable in light of the circumstances as they
      exist at the date upon which this Agreement has been executed. However, should
      a
      determination nonetheless be made by a court of competent jurisdiction at a
      later date that the character, duration or geographical scope of the covenant
      not to compete is unreasonable in light of the circumstances as they then exist,
      then it is the intention of both the Executive and the Company that the covenant
      not to compete shall be construed by the court in such a manner as to impose
      only those restrictions on the conduct of the Executive which are reasonable
      in
      light of the circumstances as they then exist and necessary to assure the
      Company of the intended benefit of the covenant to compete.

    

    9.    Confidentiality
      Covenants.

     

    (a)    The
      Executive understands that the Company and/or its Affiliates, including the
      Colombia Subsidiary, from time to time, may impart to him confidential
      information, whether such information is written, oral or graphic. 

     

    For
      purposes of this Agreement, “Confidential Information” means information, which
      is used in the business of the Company or its Affiliates and (i) is
      proprietary to, about or created by the Company or its Affiliates,
      (ii) gives the Company or its Affiliates some competitive business
      advantage or the opportunity of obtaining such advantage or the disclosure
      of
      which could be detrimental to the interests of the Company or its Affiliates,
      (iii) is designated as Confidential Information by the Company or its
      Affiliates, is known by the Executive to be considered confidential by the
      Company or its Affiliates, or from all the relevant circumstances should
      reasonably be assumed by the Executive to be confidential and proprietary to
      the
      Company or its Affiliates, or (iv) is not generally known by non-Company
      personnel. Such Confidential Information includes, without limitation, the
      following types of information and other information of a similar nature
      (whether or not reduced to writing or designated as confidential): 

         

    (i)    Internal
      personnel and financial information of the Company or its Affiliates,
      information regarding oil and gas properties including reserve information,
      vendor information (including vendor characteristics, services, prices, lists
      and agreements), purchasing and internal cost information, internal service
      and
      operational manuals, and the manner and methods of conducting the business
      of
      the Company or its Affiliates; 

         

    (ii)    Marketing
      and
      development plans, price and cost data, price and fee amounts, pricing and
      billing policies, bidding, quoting procedures, marketing techniques, forecasts
      and forecast assumptions and volumes, and future plans and potential strategies
      (including, without limitation, all information relating to any oil and gas
      prospect and the identity of any key contact within the organization of any
      acquisition prospect) of the Company or its Affiliates which have been or are
      being discussed; 

         

    (iii)    Names
      of
      customers and their representatives, contracts (including their contents and
      parties), customer services, and the type, quantity, specifications and content
      of products and services purchased, leased, licensed or received by customers
      of
      the Company or its Affiliates; and 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (iv)    Confidential
      and proprietary information provided to the Company or its Affiliates by any
      actual or potential customer, government agency or other third party (including
      businesses, consultants and other entities and individuals).

     

    The
      Executive hereby acknowledges the Company’s exclusive ownership of such
      Confidential Information.

     

    (b)    The
      Executive agrees as follows: (1) only to use the Confidential Information to
      provide services to the Company and its subsidiaries and affiliates; (2) only
      to
      communicate the Confidential Information to fellow employees, agents and
      representatives on a need-to-know basis; and (3) not to otherwise disclose
      or
      use any Confidential Information, except as may be required by law or otherwise
      authorized by the Board. Upon demand by the Company or upon termination of
      the
      Executive’s employment, the Executive will deliver to the Company all manuals,
      photographs, recordings and any other instrument or device by which, through
      which or on which Confidential Information has been recorded and/or preserved,
      which are in the Executive’s possession, custody or control.

     

    10.    Executive’s
      Representation.
      The
      Executive hereby represents that his entry
      into this Employment Agreement will not violate the terms or conditions of
      any
      other agreement to which the Executive is a party.

     

    11.    Arbitration.
      In the
      event of any breach arising from the performance of this Agreement, either
      party
      may request arbitration. In such event, the parties will submit to arbitration
      by a qualified arbitrator with the definition and laws of the State of New
      York.
      Such arbitration shall be final and binding on both parties.

     

    12.    Governing
      Law/Jurisdiction.
      This
      Agreement and any disputes or controversies arising hereunder shall be construed
      and enforced in accordance with and governed by the internal laws of the State
      of New York and, to the extent required by Colombian labor law, the laws of
      Colombia.

     

    13.    Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties hereto with
      respect to the subject matter hereof and thereof and supersedes and cancels
      any
      and all previous agreements, written and oral, regarding the subject matter
      hereof between the parties hereto. This Agreement shall not be changed, altered,
      modified or amended, except by a written agreement signed by both parties
      hereto.

     

    14.    Notices.
      All
      notices, requests, demands and other communications called for or contemplated
      hereunder shall be in writing and shall be deemed to have been given when
      delivered to the party to whom addressed or when sent by telecopy (if promptly
      confirmed by registered or certified mail, return receipt requested, prepaid
      and
      addressed) to the parties, their successors in interest, or their assignees
      at
      the following addresses, or at such other addresses as the parties may designate
      by written notice in the manner aforesaid:

     

    (a)    to
      the
      Company at:

    

    La
      Cortez
      Energy, Inc.

    1266
      1st
      Street,
      Suite 4

    Sarasota,
      FL 34236 

    Attn:
      Nadine Smith

    Fax:
      (941) 365-5426

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    with
      a
      copy to:

     

    Gottbetter
      & Partners, LLP

    488
      Madison Avenue

    New
      York,
      NY 10022-5718

    Attn:
      Adam S. Gottbetter

    Fax:
      (212) 400-69019

     

    (b)    to
      the
      Executive at:

     

    Calle
      ---- No 8-41, Apt 401 

    Bogota,
      Colombia 

    Fax:
      (___) ___-____

    

    All
      such
      notices, requests and other communications will (i) if delivered personally
      to
      the address as provided in this Section 14, be deemed given upon delivery,
      (ii)
      if delivered by facsimile transmission to the facsimile number as provided
      for
      in this Section 14, be deemed given upon facsimile confirmation, (iii) if
      delivered by mail in the manner described above to the address as provided
      for
      in this Section 14, be deemed given on the earlier of the third business day
      following mailing or upon receipt and (iv) if delivered by overnight courier
      to
      the address as provided in this Section 14, be deemed given on the earlier
      of
      the first business day following the date sent by such overnight courier or
      upon
      receipt (in each case regardless of whether such notice, request or other
      communication is received by any other person to whom a copy of such notice
      is
      to be delivered pursuant to this Section 14). Either party may, by notice given
      to the other party in accordance with this Section 14, designate another address
      or person for receipt of notices hereunder.

     

    15.    Severability.
      If any
      term or provision of this Agreement, or the application thereof to any person
      or
      under any circumstance, shall to any extent be invalid or unenforceable, the
      remainder of this Agreement, or the application of such terms to the persons
      or
      under circumstances other than those as to which it is invalid or unenforceable,
      shall be considered severable and shall not be affected thereby, and each term
      of this Agreement shall be valid and enforceable to the fullest extent permitted
      by law. The invalid or unenforceable provisions shall, to the extent permitted
      by law, be deemed amended and given such interpretation as to achieve the
      economic intent of this Agreement.

     

    16.    Waiver.
      The
      failure of any party to insist in any one instance or more upon strict
      performance of any of the terms and conditions hereof, or to exercise any right
      or privilege herein conferred, shall not be construed as a waiver of such terms,
      conditions, rights or privileges, but same shall continue to remain in full
      force and effect. Any waiver by any party of any violation of, breach of or
      default under any provision of this Agreement by the other party shall not
      be
      construed as, or constitute, a continuing waiver of such provision, or waiver
      of
      any other violation of, breach of or default under any other provision of this
      Agreement.

     

    17.    Successors
      and Assigns.
      This
      Agreement shall be binding upon the Company and any successors and assigns
      of
      the Company. Neither this Agreement nor any right or obligation hereunder may
      be
      assigned by the Executive. The Company may assign this Agreement and its right
      and obligations hereunder, in whole or in part.

     

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

     

    19.    Headings.
      Headings in this Agreement are for reference purposes only and shall not be
      deemed to have any substantive effect.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    20.    Opportunity
      to Seek Advice.
      The
      Executive acknowledges and confirms that he has had the opportunity to seek
      such
      legal, financial and other advice and representation as he has deemed
      appropriate in connection with this Agreement.

     

    21.    Withholding
      and Payroll Practices.
      All
      salary, severance payments, bonuses or benefits payments made by the Company
      under this Agreement shall be net of any tax or other amounts required to be
      withheld by the Company under applicable Colombian law and shall be paid in
      the
      ordinary course pursuant to the Company’s then existing payroll
      practices.

     

    22.    Conflict
      of Law.
      To the
      extent there is any conflict between the laws of New York and the laws of
      Colombia with respect to any terms of this Agreement, the parties understand
      that the laws of Colombia may control. 

     

    [the
      next page is the signature page]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	 	LA
              CORTEZ ENERGY,
              INC.,
	 	a Nevada corporation
	 
 	 
 	 
 
	 	By:  	/s/ Nadine
              Smith
	 	
              
Name:
              Nadine Smith
	 	Title:  
              Chairperson

    

    
       

      
        	 	 	 
	Witness:
 	 
 	EXECUTIVE:
 
	 	 	 
	/s/ Renathe Roze	       
                	/s/ Andres
                Gutierrez Rivera
	
                
Name:
                Renathe Roze	
                
Name: Andres
                Gutierrez Rivera

      

       

      
        
          
          

        

        
          12EMPLOYMENT
      AGREEMENT

    

    EMPLOYMENT
      AGREEMENT, dated as of January 31, 2008 (this “Agreement”), by and between NEW
      MOTION, INC., a Delaware corporation (the “Company”), and ANDREW STOLLMAN
      (“Executive”).

    

    WITNESSETH:

    

    WHEREAS,
      the Company desires to employ Executive on the terms and subject to the
      conditions hereinafter set forth, and Executive desires so to be
      employed.

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants hereinafter
      set forth, the parties agree as follows:

    

    1. Offices
      and Duties.
      During
      the Term (as hereinafter defined), Executive shall serve as the President of
      the
      Company and shall have such duties and responsibilities that are commensurate
      with such position and such other duties and responsibilities as are from time
      to time assigned to the Executive by the Company’s Chief Executive Officer and
      board of directors. The Company’s board of directors may elect or designate
      Executive to serve in such other corporate offices of the Company or a
      subsidiary or affiliate of the Company as the Company’s board of directors from
      time to time may reasonably deem necessary, proper or advisable and as the
      Executive shall accept. Executive hereby agrees that throughout the Term he
      shall faithfully, diligently and to the best of his ability, in furtherance
      of
      the business of the Company, perform the duties assigned to him or incidental
      to
      the offices assumed by him pursuant to this Section. Executive shall devote
      all
      of his business time and attention to the business and affairs of the Company
      and the performance of Executive’s duties and responsibilities hereunder.
      Executive may engage or participate in such other activities incidental to
      any
      other full-time employment or occupation as do not interfere or conflict with,
      or compromise his ability to perform, his duties hereunder, and do not create
      a
      potential business conflict, and with respect to which the Company’s board of
      directors has expressly consented and approved in advance in writing. Executive
      shall at all times be subject to the supervision, direction and control of
      the
      Company’s Chief Executive Officer and its board of directors, and observe and
      comply with such rules, regulations, policies and practices as the Company’s
      board of directors may from time to time establish. Executive shall report
      to
      the Company’s Chief Executive Officer. The Executive represents and warrants to
      the Company that the Executive has the legal right to enter into this Agreement
      and to perform all of the obligations on the Executive’s part to be performed
      hereunder in accordance with its terms and that the Executive is not a party
      to
      any agreement or understanding, written or oral, which could prevent the
      Executive from entering into this Agreement or performing all of the Executive’s
      obligations hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
2. Term.
      The
      employment of Executive hereunder shall commence on the date hereof (the
“Commencement Date”) and continue for a term ending on the third (3rd)
      anniversary of the last day of the calendar month in which such commencement
      date occurs, subject to earlier termination upon the terms and conditions
      provided elsewhere herein (the “Term”); provided, however, that this Agreement
      shall become effective only upon consummation of the merger contemplated by
      that
      certain Agreement and Plan of Merger dated as of September 26, 2007, by and
      among, the Company, Traffix, Inc. and a wholly-owned subsidiary of the Company.
      As used herein, “Termination Date” means the last day of the Term. Subject to
      the provisions of Section 18 hereof, the Executive shall be an “at-will”
employee of the Company such that the Company may terminate the Executive’s
      employment with the Company and the Term upon advance written notice at any
      time
      and for any reason (or no reason). 

    

    3. Compensation.

    

    (a) As
      compensation for Executive’s services hereunder, the Company shall pay to
      Executive during the Term an annual salary (the “Base Salary”), which shall
      initially be equal to Four Hundred Twenty Five Thousand Dollars ($425,000.00),
      payable
      in accordance with the ordinary payroll practices of the Company.
      The
      Base Salary shall be subject to increase at the end of each year of the Term
      at
      the sole and complete discretion of the Company’s board of
      directors.

    

    (b) As
      additional compensation for Executive’s services hereunder, upon the execution
      of this Agreement (i) the Company shall pay to Executive a signing bonus of
      Two
      Hundred Fifty Thousand Dollars ($250,000) and (ii) all options to purchase
      equity securities of the Company held by Executive at the time of such execution
      (other than stock options issued to Executive under Section 4) shall
      automatically vest.

    

    (c) Executive
      may also receive an annual bonus for each calendar year during the Term if
      the
      Company’s business operations meet or exceed certain financial performance
      standards to be determined by the Company’s board of directors in accordance
      with this Section, and as part of an annual incentive plan to be submitted
      for
      approval by the stockholders of the Company. No later than the end of the first
      calendar quarter of each calendar year, the Company’s board of directors (or the
      compensation committed thereof) shall adopt and approve: (i) financial goals
      (the “Goals”) for the Company with respect to such calendar year; and (ii) the
      bonus targets and other performance standards (collectively, the “Bonus Matrix”)
      to be used to determine Executive’s annual bonus for such calendar year. The
      Company shall deliver the Goals and the Bonus Matrix to Executive promptly
      after
      their adoption and approval by the board of directors (or the compensation
      committed thereof). The Goals and the Bonus Matrix for the calendar year ending
      December 31, 2008 are set forth on the 2008 Bonus Schedule attached hereto
      as
      Exhibit A. Any amounts payable under this Section shall be calculated using
      the
      results reported in the Company’s audited financial statements for the
      applicable fiscal year and shall be payable the later of (A) ninety (90) days
      after the end of the applicable fiscal year or (B) completion of the Company’s
      audited financial statements for such year. Until approval of this Agreement
      by
      the Company’s stockholders, in no event shall the amount payable to Executive
      under this Section in any fiscal year of the Company exceed an amount, which,
      when added to all other compensation (as such term is used in Section 162(m)
      of
      the Code) paid to Executive in such fiscal year results in the total of such
      compensation for such fiscal year to exceed One Million Dollars ($1,000,000).
      

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d) The
      Company shall use its commercially reasonable efforts to procure medical,
      hospitalization, dental and disability insurance (in the case of disability
      insurance, providing for $15,000 coverage per month) for the benefit of
      executive and his wife and children, and the Company shall pay all premiums
      and
      any other costs or expenses incurred to maintain such policies in effect during
      the Term, or as provided under Section 18, all consistent with the Company’s
      established practices and policies. As an alternative to procuring such
      policies, the Company may authorize Executive to procure such policies, and
      the
      Company shall reimburse Executive for the reasonable costs incurred by him
      in
      connection with the procurement of such policies. 

    

    (e) The
      Company shall use commercially reasonable efforts to procure a term policy
      of
      life insurance on the life of Executive with a death benefit of at least Five
      Million Dollars ($5,000,000) for a beneficiary or beneficiaries to be designated
      by Executive, and the Company shall pay all premiums and any other ordinary
      costs or expenses incident to maintaining such policy in effect during the
      Term,
      or as provided under Section 18. In connection with the procurement of such
      policy, Executive shall, at such time or times and at such place or places
      as
      the Company may reasonably direct, submit himself to such physical examinations
      and execute and deliver such documents as the Company may deem necessary or
      appropriate. As an alternative to procuring such policy, the Company may
      authorize Executive to procure such policy, and the Company shall reimburse
      Executive for the reasonable costs incurred by him in connection with the
      procurement of such policy. Upon the expiration or termination of the Term
      and
      until the earlier of the second anniversary of a termination by Executive for
      “good reason” under Section 16 or by the Company other than for “cause” under
      Section 15, Executive shall have the right to maintain such policy at
      Executive’s cost and expense. 

    

    (f) In
      addition to his Base Salary and other compensation provided herein, during
      the
      Term Executive shall be entitled to participate, to the extent he is eligible
      under the terms and conditions thereof, in any stock, stock option or other
      equity participation plan and any profit-sharing, pension, retirement,
      insurance, medical service or other employee benefit plan generally available
      to
      the executive officers of the Company, and to receive any other benefits or
      perquisites generally available to the executive officers of the Company
      pursuant to any employment policy or practice, which may be in effect from
      time
      to time during the Term. The Company shall be under no obligation hereunder
      to
      institute or to continue any such employee benefit plan or employment policy
      or
      practice. 

    

    (g) [RESERVED]

    

    (h) During
      the Term, Executive shall not be entitled to additional compensation for serving
      in any office of the Company (or any subsidiary thereof) to which he is elected
      or appointed. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4. Stock
      Options.
      

    

    (a) On
      the
      Commencement Date, the Company shall grant to Executive an option (the “Option”)
      to acquire Three Hundred Thousand (300,000) shares of the Company’s common
      stock, par value $.001 per share (the “Common Stock”), subject to the terms and
      conditions of the Company’s Stock Option Plan and the Stock Option Agreement
      substantially in the form annexed to this Agreement as Exhibit
      B
      (the
“Stock Option Agreement”). As a condition to receiving the Option, Executive
      shall execute and deliver to the Company the Stock Option Agreement. As provided
      in the Stock Option Agreement, the Option shall be exercisable at an exercise
      price equal to the average closing price of the Common Stock reported for the
      ten (10) trading days immediately preceding the Commencement Date, at any time
      during the ten (10) year period following the Commencement Date. Additionally,
      as provided in the Stock Option Agreement, the Option shall be subject to the
      following vesting schedule: 

    

    (i) the
      Option shall first vest, with respect One Hundred Thousand (100,000) shares
      of
      Common Stock, on the first (1st)
      anniversary of the Commencement Date;

    

    (ii) thereafter,
      the Option shall next vest, with respect to Eight Thousand Three Hundred Forty
      One (8,341) shares of Common Stock, on the last day of the calendar month
      immediately following the first (1st)
      anniversary of the Commencement Date (such vesting date, the “Second Vesting
      Date”); and

    

    (iii) thereafter,
      the Option shall next vest, with respect to the remaining One Hundred Ninety
      One
      Thousand Six Hundred Fifty Nine (191,659) shares of Common Stock underlying
      the
      Option, in twenty three (23) equal installments of Eight Thousand Three Hundred
      Thirty Three (8,333) shares each on the last day of each calendar month during
      the period of twenty three (23) consecutive months commencing after the Second
      Vesting Date. 

    

    (b) As
      provided in the Stock Option Agreement, except (as provided herein) in the
      event
      of a termination of the Executive’s employment by the Company without “cause”
(as such term is used in Section 15 hereof) and except in the event of a
      termination of the Executive’s employment by Executive for “good reason” (as
      contemplated under Section 16 hereof), any portion of the Option that remains
      unvested at the time of termination of Executive’s employment (and/or upon
      termination or expiration of the Term) (the “Unvested Portion”) shall be
      extinguished and cancelled and Executive shall have no rights or benefits
      whatsoever with respect to the Unvested Portion. Executive represents and
      warrants that he is acquiring the Option and the shares of Common Stock issuable
      upon exercise thereof for investment purposes only, and not with a view to
      distribution thereof. Executive is aware that the Option and such shares may
      not
      be registered under the federal or any state securities laws and that, in
      addition to the other restrictions, the Option and such shares issuable upon
      exercise thereof will not be able to be transferred unless an exemption from
      registration is available or the option or such shares become
      registered.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
5. Restricted
      Stock.

    

    (a) On
      the
      Commencement Date, the Company shall issue to Executive Two Hundred Seventy
      Five
      Thousand (275,000) shares of Common Stock (the “Restricted Shares”), pursuant to
      the terms of a Restricted Stock Purchase Agreement in a form acceptable to
      the
      Company (the “Restricted Stock Purchase Agreement”). Executive shall execute and
      deliver to the Company the Restricted Stock Purchase Agreement as a condition
      to
      the Company’s obligation to issue the Restricted Shares. The Restricted Shares
      shall be subject to forfeiture under the terms of the Restricted Stock Purchase
      Agreement. The Restricted Shares shall be subject to vesting as provided in
      the
      Restricted Stock Purchase Agreement, in accordance with and subject to the
      following vesting schedule: 

    

    (i) the
      first
      One Hundred Thousand (100,000) Restricted Shares shall vest after the closing
      of
      trading on the date that the average per share trading price of the Common
      Stock
      during any period of ten (10) consecutive trading days (following the
      Commencement Date) equals or exceeds the greater of (a) Fifteen Dollars ($15)
      or
      (b) One Hundred Fifty Percent (150%) of the per share trading price of the
      Common Stock on the Commencement Date. The per share trading price of the Common
      Stock that causes such Restricted Shares to vest shall be referred to herein
      as
      the “First Vesting Price”.

    

    (ii)
       the
      remaining One Hundred Seventy Five Thousand (175,000) Restricted Shares shall
      vest after the closing of trading on the date that the average per share trading
      price of the Common Stock during any period of ten (10) consecutive trading
      days
      equals or exceeds the greater of (a) Twenty Dollars ($20) or (b) One Hundred
      Thirty Three and One-Third Percent (133 1/3%) of the First Vesting Price.

    

    (b) As
      provided in the Restricted Stock Purchase Agreement, except (as provided herein)
      in the event of a termination of the Executive’s employment by the Company
      without “cause” (as such term is used in Section 15 hereof) and except in the
      event of a termination of the Executive’s employment by Executive for “good
      reason” (as contemplated under Section 16 hereof), any and all of the Restricted
      Shares that remain unvested at the time of termination of Executive’s employment
      (and/or upon termination or expiration of the Term) (the “Unvested Restricted
      Stock Portion”) shall be subject to forfeiture and Executive’s entire ownership
      interest in to the Unvested Restricted Stock Portion shall be forfeited,
      extinguished and cancelled and Executive shall have no rights or interest in
      the
      Unvested Restricted Stock Portion. Subject to the terms of the Restricted Stock
      Purchase Agreement, the Company may issue stock certificates or otherwise
      evidence the Executive’s interest in the Restricted Shares by using a book entry
      account, and may maintain physical possession or custody of such stock
      certificates until such time as the Restricted Shares are vested in accordance
      with this Section, and may place a legend on the stock certificate(s)
      restricting the transferability of such certificates and referring to the terms
      and conditions (including forfeiture) of this Agreement. Executive represents
      and warrants that he is acquiring the Restricted Shares for investment purposes
      only, and not with a view to distribution thereof. Executive is aware that
      the
      Restricted Shares may not be registered under the federal or any state
      securities laws and that, in addition to the other restrictions on the
      Restricted Shares, the Restricted Shares will not be able to be transferred
      unless an exemption from registration is available or the Restricted Shares
      become registered.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c) If
      the
      Company’s stockholders adopt a restricted share plan, the Restricted Shares
      shall be deemed issued in accordance therewith and subject thereto.

    

    6. Long
      Term Performance Unit Plan.
      Promptly after the Commencement Date, the Company shall establish and maintain
      a
      long-term executive compensation plan (the “LTEC Plan”) for the benefit of
      Executive and other senior executives of the Company. LTEC Plan shall provide
      for the payment of additional compensation to Executive based upon the Company’s
      achievement of certain performance standards to be determined by the Company’s
      board of directors. Such performance standards shall be based upon a three
      to
      five year strategic plan for the Company. In addition, the terms of the LTEC
      Plan shall include the nature of the compensation to be awarded, the number
      of
      units to be awarded and vesting.

    

    7. Expense
      Allowance.
      The
      Company shall pay directly, or advance funds to Executive or reimburse Executive
      for, all out-of-pocket expenses reasonably incurred by him in connection with
      the performance of his duties hereunder and the business of the Company, in
      each
      case subject to and in accordance with the Company’s standard policies
      (including, without limitation, expense verification policies) regarding the
      reimbursement of business expenses, as in effect from time to time. Without
      limiting the foregoing, the Company shall reimburse Executive for the reasonable
      legal costs incurred by him (up to a maximum of Ten Thousand Dollars ($10,000))
      in connection with the preparation and execution of this Agreement.

    

    8. Location;
      Office.
      Except
      for routine travel and temporary accommodation reasonably required to perform
      his services hereunder, Executive shall not be required to perform his services
      hereunder at any location other than the office of the Company located in Pearl
      River, New York, or, if relocated, at a location within a distance of fifty
      (50)
      miles from its location in Pearl River, New York, or at such other office or
      site to which Executive may, in his sole discretion, consent; nor shall he
      be
      required to relocate his principal residence to, or otherwise to reside at,
      any
      location specified by the Company; provided, however, that if the Company does
      not maintain offices within fifteen (15) miles from its present location in
      Pearl River, New York, Executive shall not be required to work at the Company’s
      offices more than two (2) days per week (excluding weekends and holidays) to
      the
      extent that Executive is capable of properly performing his duties and
      responsibilities hereunder from a location other than the Company’s offices. The
      Company shall provide Executive with suitable office space, furnishings and
      equipment, secretarial and clerical services and such other facilities and
      office support as are commensurate with the position of Executive, in all cases
      consistent with and subject to the practices of the Company. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
9. Vacation.
      Executive shall be entitled to four (4) weeks paid vacation during each year
      of
      his employment hereunder (as pro rated for partial years), such vacation to
      be
      taken at such time or times as shall be agreed upon by Executive and the Company
      with due regard to the needs of the Company. Vacation time shall be cumulative
      from year to year, except that Executive shall not be entitled to take more
      than
      six (6) weeks vacation during any period of twelve (12) consecutive months
      during the Term; and provided further that at no time shall Executive be
      entitled to accrue more than six (6) weeks of vacation time under this
      Agreement; and provided further that the rights of Executive to vacation shall
      be otherwise subject to the Company’s policies on vacation as in effect from
      time to time. 

    

    10. Key-Man
      Insurance.
      The
      Company shall have the right from time to time to purchase, increase, modify
      or
      terminate insurance policies on the life of Executive for the benefit of the
      Company in such amounts as the Company may determine in its sole discretion.
      In
      connection therewith, Executive shall, at such time or times and at such place
      or places as the Company may reasonably direct, submit himself to such physical
      examinations and execute and deliver such documents as the Company may deem
      necessary or appropriate.

    

    11. Ancillary
      Agreements.
      As a
      material inducement to the Company for entering into this Agreement and as
      a
      condition to the obligations of the Company hereunder, Executive is hereby
      executing and delivering that each of the following: (a) that certain
      Non-Competition, Non-Solicitation and Proprietary Information Agreement dated
      of
      even date herewith, by and between Executive and the Company in the form of
      Exhibit
      C
      attached
      hereto (the “Non-Competition Agreement”), and (b) that certain General Release
      date of even date herewith, by and among Executive, Traffix, Inc. and the
      Company in the form of Exhibit
      D
      attached
      hereto (together with the Non-Competition Agreement, the “Ancillary
      Agreements”). Each of the Company and Executive hereby agrees and acknowledges
      that the rights and obligations of the parties under the Non-Competition
      Agreement and the terms and provisions thereof are an integral part of this
      Agreement and hereby are incorporated in this Agreement as if fully set forth
      herein. Without limiting any other rights that the Company may have, if
      Executive breaches any provision of the Non-Competition Agreement, any right
      that Executive may have to receive any compensation or payments from the Company
      hereunder shall be forfeited by Executive and extinguished in all respects.
      

    

    12. [RESERVED] 

    

    13. [RESERVED]
      

    

    14. Termination
      of Employment.
      Executive’s employment and the Term will terminate on the first of the following
      to occur:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (a) Automatically
      upon Executive’s death. 

    

    (b) Upon
      written notice by the Company to Executive of termination due to Disability
      (as
      defined below). For the purposes of this Agreement, “Disability” shall mean a
      condition that entitles Executive to benefits under an applicable Company
      long-term disability plan or, if no such plan exists, a physical or mental
      disability which, in the reasonable judgment of the Company’s board of
      directors, is likely to render Executive unable to perform his duties and
      obligations under this Agreement for 180 days in any 12-month period.

    

    (c) Upon
      written notice by the Company to the Executive of a termination for “cause”
under Section 15 of this Agreement.

    

    (d) Upon
      termination for “good reason” under Section 16 of this Agreement.

    

    (e) Upon
      written notice by the Company to the Executive of an involuntary termination
      without “cause”, other than for death or Disability.

    

    (f) Upon
      “voluntary termination” by Executive under Section 17 of this Agreement.

    

    15. Termination
      for Cause.

    

    (a) In
      addition to any other rights or remedies provided by law or in this Agreement,
      the Company may terminate Executive’s employment under this Agreement for
“cause” if:

    

    (i) Executive
      is convicted of, or enters a plea of guilty or nolo contendere
      to, a
      felony offense (unless, in the case of a conviction, the conviction shall have
      been reversed on appeal); or

    

    (ii) the
      Company’s board of directors determines that Executive has:

    

    (A) committed
      fraud against, or embezzled or misappropriated funds or other assets of, the
      Company (or any subsidiary thereof);

    

    (B) violated,
      or caused the Company (or any subsidiary thereof) or any officer, employee
      or
      other agent thereof, or any other person to violate, any material law,
      regulation or ordinance or, repeatedly violated, or caused the Company (or
      any
      subsidiary thereof) or any officer, employee or other agent thereof, or any
      other person to violate, any material rule, regulation, policy or practice
      established by the Company’s board of directors;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (C) willfully,
      or because of gross or persistent negligence, (A) failed to properly perform
      his
      duties hereunder or (B) acted in a manner detrimental to, or adverse to the
      interests of, the Company, and such failure or action has caused, or is likely
      to cause, the Company (or any subsidiary thereof) to suffer or incur casualty,
      loss, penalty, expense or other liability or cost;

    

    (D) violated,
      or failed to perform or satisfy any material covenant, condition or obligation
      required to be performed or satisfied by Executive; or

    

    (E) habitually
      used illegal drugs or consumed alcohol and such consumption has caused material
      damage to the Company.

    

    (b) The
      Company may effect such termination for cause by giving Executive written notice
      to such effect, setting forth in reasonable detail the factual basis for such
      termination (the “Cause Notice”); provided,
      however,
      that
      Executive may avoid such termination if the termination is based on any
      occurrence, act or event described in clauses (A) to (E) of paragraph (ii)
      of
      Section 15(a) (each, a “For Cause Event”), if the matters giving rise to such
      termination (including without limitation, any breach or violation by Executive)
      are remedied or cured, if capable of remedy or cure, within 30 days after
      receipt of the Cause Notice (“30-Day Executive Cure Period”). For the avoidance
      of doubt, Executive’s employment hereunder and the Term shall be terminated
      immediately upon delivery of the Cause Notice if Executive’s employment is being
      terminated due to the occurrence, act or event described in paragraph (i) of
      Section 15(a), and Executive’s employment hereunder and the Term shall be
      terminated immediately upon expiration of the 30-Day Executive Cure Period
      if
      Executive’s employment is terminated due to the occurrence, act or events
      described in clauses (A) to (E) of paragraph (ii) of Section 15(a) (assuming
      the
      matters, violations or conditions giving rise to such termination are capable
      of
      being cured or remedied, provided that if they are incapable of being so cured
      or remedied, then such termination shall be immediate upon delivery of the
      Cause
      Notice). 

    

    (c) In
      making
      any determination pursuant to paragraph (ii) of Section 15(a) based on or due
      to
      any For Cause Event, the board of directors may take into account each and
      all
      of the following:

    

    (i) if
      Executive is made a party to, or target of, any Proceeding arising under or
      relating to any For Cause Event, Executive’s failure to defend against such
      Proceeding or to answer any complaint filed against him therein, or to deny
      any
      claim, charge, averment, or allegation thereof asserting or based upon the
      occurrence of a For Cause Event;

    

    (ii) any
      judgment, award, order, decree or other adjudication or ruling in any such
      Proceeding finding or based upon the occurrence of a For Cause Event (that
      is
      not reversed or vacated on appeal); or

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (iii) any
      settlement or compromise of, or consent decree issued in, any such Proceeding
      in
      which Executive expressly admits the occurrence of a For Cause Event;
provided
      that the
      Company’s board of directors shall not be required to treat any of the foregoing
      as dispositive or giving rise to an irrebuttable presumption of the occurrence
      of such For Cause Event; and provided further
      that the
      Company's board of directors may rely on any other factor or event as convincing
      evidence of the occurrence of a For Cause Event.

    

    (d) In
      determining and assessing the detrimental effect of any For Cause Event on
      the
      Company and whether such For Cause Event warrants the termination of Executive’s
      employment hereunder, the Company's board of directors may take into account
      each and all of the following:

    

    (i)
      whether the Company's Board of Directors directed or authorized Executive to
      take, or to omit to take, any action involved in such For Cause Event, or
      approved, consented to or acquiesced in his taking or omitting to take such
      action;

     

    (ii) any
      award
      of damages, penalty or other sanction, remedy or relief granted or imposed
      in
      any Proceeding based upon or relating to such For Cause Event, and whether
      such
      sanction, remedy or relief is sufficient to recompense the Company or any other
      injured person, or to prevent or to deter the recurrence of such For Cause
      Event;

     

    (iii) whether
      any lesser sanction would be appropriate and effective; and

     

    (iv) any
      adverse effect that the loss of Executive's services would have, or be
      reasonably likely to have, upon the Company.

    

    Nothing
      contained in this Section 15 shall be construed in any way to limit or restrict
      the right and ability of the board of directors of the Company to consider
      or
      base its determination on any other factors that the board of directors deems
      to
      be relevant in connection with any determination or assessment under this
      Section 15. 

    

    16. Termination
      by Executive for Good Reason.
      

    

    (a) In
      addition to any other rights or remedies provided by law or in this Agreement,
      Executive may terminate his employment hereunder for “good reason” if (A) the
      Company violates, or fails to perform or satisfy any material covenant,
      condition or obligation required to be performed or satisfied by it hereunder,
      (B) as a result of any action or failure to act by the Company, there is a
      material adverse change in the nature or scope of the duties, obligations,
      rights or powers of Executive’s employment (including any such material adverse
      change resulting from a Change of Control, as hereinafter defined), (C) the
      Company moves its headquarters more than fifty (50) miles from its location
      in
      Pearl River, New York, in each case subject to the terms set forth in this
      Section 16, or (D) if the Company does not maintain offices within fifteen
      (15)
      miles from its present location in Pearl River, New York, the Company expressly
      requires Executive to work at the Company’s offices more than two (2) days per
      week (excluding weekends and holidays) even though Executive is capable of
      properly performing his duties and responsibilities hereunder from a location
      other than the Company’s offices. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b) Executive
      may effect such termination for good reason by giving the Company written notice
      to such effect, setting forth in reasonable detail the factual basis for such
      termination (the “Good Reason Notice”); provided, however, that the Company may
      avoid such termination, if the matters giving rise to such termination
      (including without limitation, any breach or violation by the Company) are
      remedied or cured, within 30 days after receipt of the Good Reason Notice
      (“30-Day Company Cure Period”). For the avoidance of doubt, Executive’s
      employment hereunder and the Term shall be terminated immediately upon
      expiration of the 30-Day Company Cure Period in the case of a termination for
      “good reason” under this Section 16. 

    

    17. Voluntary
      Termination by Executive.
      In
      addition to any other rights or remedies provided by law or in this Agreement,
      Executive may terminate his employment hereunder at any time by giving the
      Company written notice to such effect at least ninety (90) days prior to the
      date of termination set forth therein, such termination to be irrevocable upon
      receipt of such notice by the Company.

    

    For
      the
      avoidance of doubt, the termination by Executive of his employment hereunder
      for
“good reason” pursuant to Section 16 of this Agreement shall not constitute or
      be deemed to constitute for any purpose a "voluntary termination" of his
      employment under this Section 17.

    

    18. Compensation
      and Benefits upon Termination.

    

    (a) If
      Executive’s employment is terminated as a result of his death or Disability, the
      Company will pay or provide to Executive any (i) Accrued Benefits (as
      hereinafter defined) and (ii) a sum equal to a prorated portion of the annual
      bonus to which Executive would have been entitled if his employment had
      continued until the end of the employment year in which his death or disability
      occurred (the “Pro Rated Bonus Amount”). For the purposes of this Agreement,
“Accrued Benefits” means: 1) any unpaid Base Salary through the date of
      termination; (2) reimbursement for any unreimbursed expenses incurred through
      the date of termination; (3) any unused vacation time accrued (through the
      date
      of termination) in accordance with Company policy; and (4) any other payments,
      benefits or fringe benefits to which the Executive may be entitled under the
      terms of any applicable compensation arrangement or benefit plan or program
      or
      this Agreement, in all cases only through the date of termination (collectively
      items (1) through (4) shall be hereafter referred to as “Accrued Benefits”). The
      Pro Rated Bonus Amount shall be calculated by multiplying the total amount
      of
      the corresponding annual bonus by a fraction, the numerator of which is the
      number of days served by Executive during such employment year, and the
      denominator shall be three hundred sixty five (365) days. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (b) If
      Executive’s employment is terminated for cause under Section 15, or if
      Executive’s employment is terminated by Executive voluntarily under Section 17
      or voluntarily other than for good reason pursuant to Section 16 hereof, the
      Company will pay or provide to Executive any Accrued Benefits. 

    

    (c) If
      Executive’s employment is terminated by Executive for good reason pursuant to
      Section 16 or by the Company other than for cause under Section 15, the Company
      will pay or provide the Executive with (i) any Accrued Benefits, (ii) subject
      to
      Executive’s compliance with the obligations herein, (A) a one time payment equal
      to the sum of (x) two (2) times his Base Salary and (y) two (2) times the
      Average Bonus Amount (as hereinafter defined); and (B) coverage under the
      employee benefit plans described in Section 3 until the earlier of the second
      (2nd)
      anniversary of such termination or Executive’s eligibility to receive similar
      benefits from a new employer; and (iii) all stock options and other awards
      granted hereunder (other than options and awards that vest upon the achievement
      of performance objectives) shall automatically vest and shall remain exercisable
      for a period of one (1) year after such termination. For the purposes hereof,
      the “Average Bonus Amount” means, in the case of a termination of Executive’s
      employment, an amount equal to the average of the annual bonus amounts received
      by Executive under this Agreement for the two (2) years prior to such
      termination. If the terms of any such employee benefit plans do not permit
      such
      coverage after termination of employment, the Company shall reimburse Executive
      in full for the cost reasonably incurred by Executive in obtaining similar
      coverage. Any amount due to Executive under clause (i) and (ii)(A) of this
      Section shall be payable as follows: fifty percent (50%) of such amount shall
      be
      payable in a lump sum within thirty (30) days of termination of employment,
      and
      the balance shall be payable in twenty four (24) equal monthly installments
      over
      the period of twenty four (24) months following such termination; provided,
      however, that if such amounts due to Executive become payable under this Section
      as a result of a termination of Executive’s employment occurring at any time
      before the first (1st)
      anniversary of the date of any Change of Control, such amounts shall be paid
      in
      a single lump sum payment within thirty (30) days of termination of employment,
      except as provided in Section 19 hereof. Amounts payable to Executive under
      this
      Section 16(c), if any, are hereinafter referred to as the “Parachute Amount.”

    

    (d) Except
      as
      expressly set forth herein, any amount payable to Executive upon termination
      of
      his employment hereunder shall be paid promptly, and in any event within thirty
      (30) days, after the Termination Date. 

    

    19. Change
      of Control.
      

    

    (a) For
      the
      purposes of this Section 19:

    

    (i) The
      "Act"
      is the Securities Exchange Act of 1934, as amended.

    

    (ii) A
      "person" includes a "group" within the meaning of Section 13(d)(3) of the
      Act.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (iii) "Control"
      is used herein as defined in Rule 12b-2 under the Act.

    

    (iv) "Beneficially
      owns" and "acquisition" are used herein as defined in Rules 13d-3 and 13d-5,
      respectively, under the Act. 

    

    (v) "Non-Affiliated
      Person" means any person, other than Executive, an employee stock ownership
      trust of the Company (or any trustee thereof for the benefit of such trust),
      or
      any person controlled by Executive, the Company or such a trust.

    

    (vi) "Voting
      Securities" includes Common Stock and any other securities of the Company that
      ordinarily entitle the holders thereof to vote, together with the holders of
      Common Stock or as a separate class, with respect to matters submitted to a
      vote
      of the holders of Common Stock; provided, however, that securities of the
      Company as to which the consent of the holders thereof is required by applicable
      law or the terms of such securities only with respect to certain specified
      transactions or other matters, or the holders of which are entitled to vote
      only
      upon the occurrence of certain specified events (such as default in the payment
      of a mandatory dividend on preferred stock or a scheduled installment of
      principal or interest of any debt security), shall not be Voting
      Securities.

    

    (vii) "Right"
      means any option, warrant or other right to acquire any Voting Security (other
      than such a right of conversion or exchange included in a Voting
      Security).

    

    (viii)
      The "Code" is the Internal Revenue Code of 1986, as amended.

    

    (ix)
      "Base amount," "present value" and "parachute payment" are used herein as
      defined in Section 280G of the Code.

    

    (b) A
      "Change
      of Control" occurs when:

    

    (i) a
      Non-Affiliated Person acquires control of the Company; or

    

    (ii) upon
      an
      acquisition of Voting Securities or Rights by a Non-Affiliated Person or any
      change in the number or voting power of outstanding Voting Securities, such
      Non-Affiliated Person beneficially owns Voting Securities or Rights entitling
      such person to cast a number of votes (determined in accordance with Section
      19(g)) equal to or greater than twenty five percent (25%) of the sum of (A)
      the
      number of votes that may be cast by all other holders of outstanding Voting
      Securities and (B) the number of votes that may be cast by such Non-Affiliated
      Person (determined in accordance with Section 19(g)).

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (c) It
      is
      intended that the present value of any payments or benefits to Executive,
      whether hereunder or otherwise, that are includible in the computation of the
      Parachute Amount shall not exceed 2.99 times the Executive's base amount.
      Accordingly, if Executive receives any payment or benefit from the Company
      prior
      to payment of the Parachute Amount which, when added to the Parachute Amount,
      would subject any of the payments or benefits to Executive to the excise tax
      imposed by Section 4999 of the Code, the Parachute Amount shall be reduced
      by
      the least amount necessary to avoid such tax. The Company shall have no
      obligation hereunder to make any payment or provide any benefit to Executive
      after the payment of the Parachute Amount which would subject any of such
      payments or benefits to the excise tax imposed by Section 4999 of the
      Code.

    

    (d) Any
      other
      provision hereof notwithstanding, Executive may, prior to his receipt of the
      Parachute Amount pursuant to Section 18(c), waive the payment thereof, or,
      after
      his receipt of the Parachute Amount thereunder, treat some or all of such amount
      as a loan from the Company which Executive shall repay to the Company within
      one
      hundred eighty (180) days after the receipt thereof, together with interest
      thereon at the rate provided in Section 7872 of the Code, in either case, by
      giving the Company notice to such effect.

    

    (e) Any
      determination of the Executive's base amount, the Parachute Amount, any
      liability for excise tax under Section 4999 of the Code or other matter required
      to be made pursuant to this Section 19, shall be made by the Company's
      regularly-engaged independent certified public accountants, whose determination
      shall be conclusive and binding upon the Company and Executive; provided that
      such accountants shall give to Executive, on or before the date on which payment
      of the Parachute Amount or any later payment or benefit would be made, a notice
      setting forth in reasonable detail such determination and the basis therefor,
      and stating expressly that Executive is entitled to rely thereon.

    

    (f) The
      number of votes that may be cast by holders of Voting Securities or Rights
      upon
      the issuance or grant thereof shall be deemed to be the largest number of votes
      that may be cast by the holders of such securities or the holders of any other
      Voting Securities into which such Voting Securities or Rights are convertible
      or
      for which they are exchangeable or exercisable, determined as though such Voting
      Securities or Rights were immediately convertible, exchangeable or exercisable
      and without regard to any anti-dilution or other adjustments provided for
      therein.

    

    20. Other
      Termination Provisions.
      The
      Company shall defend, indemnify and hold Executive harmless from any and all
      liabilities, obligations, claims or expenses which arise in connection with
      or
      as a result of Executive's service as an officer or director of the Company
      to
      the greatest extent now provided in the Company's Certificate of Incorporation
      and Bylaws and as otherwise allowed by law. During the Term and for a period
      of
      at least ten (10) years thereafter, or for a seven (7) year period commencing
      on
      the date of the termination of Executive’s employment hereunder, Executive shall
      be entitled to the same directors and officers' liability insurance coverage
      that the Company provides generally to its other directors and officers, as
      may
      be amended from time to time for such directors and officers. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
21. Limitation
      of Authority.
      Except
      as expressly provided herein, no provision hereof shall be deemed to authorize
      or empower either party hereto to act on behalf of, obligate or bind the other
      party hereto.

    

    22. IRC
      409A.
      This
      Agreement is intended to satisfy the requirements of Section 409A(a)(2), (3)
      and
      (4) of the Code, including current and future guidance and regulations
      interpreting such provisions. To the extent that any provision of this Agreement
      fails to satisfy those requirements, the provision shall automatically be
      modified in a manner that, in the good-faith opinion of the Company, brings
      the
      provisions into compliance with those requirements while preserving as closely
      as possible the original intent of the provision. Notwithstanding anything
      to
      the contrary in this Agreement, no severance payments or benefits shall be
      paid
      to Executive during the six (6) month period following Executive's separation
      from service to the extent that the Company and Executive mutually determine
      in
      good faith that paying such amounts at the time or times indicated in this
      Agreement would cause Executive to incur an additional tax under Section 409A
      of
      the Code, in which case such amounts shall be paid at the time or times
      indicated in this Section. If the payment of any such amounts are delayed as
      a
      result of the previous sentence, then on the first day following the end of
      such
      six (6) month period, the Company will pay Executive a lump-sum amount equal
      to
      the cumulative amount that would have otherwise been payable to Executive during
      such six (6) month period. 

    

    23. Notices.
      All
      notices which are required by or may be given pursuant to the terms of this
      Agreement must be in writing and must be delivered personally; sent by certified
      mail, return receipt requested, postage prepaid; sent by facsimile (with written
      confirmation of transmission), provided that notice is also sent via first
      class
      mail, postage prepaid; or sent for next business day delivery by a nationally
      recognized overnight delivery service as follows:

    

    If
      to the
      Company at:

    

    One
      Blue
      Hill Plaza

    Pearl
      River, New York 10965

    Attn:
      Chief Executive Officer

    Fax:
      (845) 820-1212

    

    with
      copies to:

    

    Stubbs
      Alderton & Markiles LLP

    15260
      Ventura Blvd., 20th
      Floor

    Sherman
      Oaks, California 91403

    Attn:
      Albert Asatoorian, Esq.

    Fax:
      (818) 444-4520 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    If
      to
      Executive at:

    

    49
      Twin
      Brooks Road

    Saddle
      River, New Jersey 07458

    

    With
      copies to:

    

    Kraus
      & Zuchlewski, LLP

    500
      Fifth
      Ave., Suite 5100

    New
      York,
      NY 10110-5197

    Attn:
      Robert D. Kraus

    Fax:
      (212) 869-4648

    

    Any
      of
      the addresses and other contact information set forth above may be changed
      from
      time to time by written notice (delivered in accordance with this Section)
      from
      the party requesting the change. 

    

    Such
      notices and other communications will be treated for all purposes of this
      Agreement as being effective immediately if delivered personally or by facsimile
      (with written confirmation of transmission) during normal business hours, or
      five (5) days after mailing by certified mail, return receipt requested, first
      class postage prepaid, or one business day after deposit for next business
      day
      delivery by a nationally recognized overnight delivery service. 

     

    24. Amendment.
      Except
      as otherwise provided herein, no amendment of this Agreement shall be valid
      or
      effective, unless in writing and signed by or on behalf of the parties
      hereto.

    

    25. Waiver.
      No
      course of dealing or omission or delay on the part of either party hereto in
      asserting or exercising any right hereunder shall constitute or operate as
      a
      waiver of any such right. No waiver of any provision hereof shall be effective,
      unless in writing and signed by or on behalf of the party to be charged
      therewith. No waiver shall be deemed a continuing waiver or waiver in respect
      of
      any other or subsequent breach or default, unless expressly so stated in
      writing.

    

    26. Governing
      Law.
      This
      Agreement shall be governed by, and interpreted and enforced in accordance
      with,
      the laws of the State of New York without regard to principles of choice of
      law
      or conflict of laws.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
27. Arbitration.
      Any
      dispute or controversy arising out of or related to this Agreement or any breach
      hereof shall be settled by binding arbitration by the American Arbitration
      Association (or any organization successor thereto) in New York, New York in
      accordance with its Employment Arbitration Rules then prevailing. Judgment
      and
      the award rendered by the arbitration panel may be entered in any court or
      tribunal of competent jurisdiction. This provision encompasses all disputes
      relating to Executive’s employment, this Agreement, the termination of
      Executive’s employment, and the amounts paid to the Executive upon termination,
      regardless of whether such dispute arises during or after the Executive’s
      employment. In any arbitration proceeding conducted pursuant to this Section
      27,
      both parties shall have the right to discovery, to call witnesses and to
      cross-examine the other party’s witnesses (through legal counsel, expert
      witnesses, or both). All decisions of the arbitration panel shall be final,
      conclusive and binding upon the parties, and not subject to judicial review.
      The
      arbitration panel shall have no power to change any of the provisions hereof
      in
      any respect or make an award of reformation, and the jurisdiction of the
      arbitrators is expressly limited accordingly. All statutes of limitations that
      would otherwise be applicable shall apply to any arbitration proceeding
      hereunder. Any arbitration shall be conducted by an arbitration plan consisting
      of one or more arbitrators jointly selected by the parties hereto; provided,
      however, that if the parties are unable to agree on an arbitrator or
      arbitrators, the arbitrator or arbitrators shall be selected in accordance
      with
      the aforementioned Employment Arbitration Rules then prevailing. Each of the
      parties hereto shall pay the fees and expenses of its counsel, accountants
      and
      other experts incident to any such arbitration. The fees and expenses of the
      arbitrator shall be paid fifty percent (50%) by the Company and fifty percent
      (50%) by Executive. Any notice or other process relating to any such arbitration
      may be effected in the manner provided by Section 23. 

    
28. Remedies.
      In the
      event of any actual or prospective breach or default by either party hereto,
      the
      other party shall be entitled to seek equitable relief, including remedies
      in
      the nature of rescission, injunction and specific performance. All remedies
      hereunder are cumulative and not exclusive, and nothing herein shall be deemed
      to prohibit or limit either party hereto from pursuing any other remedy or
      relief available at law or in equity for such actual or prospective breach
      or
      default, including the recovery of damages.

    

    29. Severability.
      The
      provisions hereof are severable and in the event that any provision of this
      Agreement shall be determined to be invalid or unenforceable in any respect
      by a
      court of competent jurisdiction, the remaining provisions hereof shall not
      be
      affected, but shall, subject to the discretion of such court, remain in full
      force and effect, and any invalid or unenforceable provision shall be deemed,
      without further action on the part of the parties hereto, amended and limited
      to
      the extent necessary to render the same valid and enforceable.

    

    30. Counterparts.
      This
      Agreement may be executed in counterparts, including, without limitation, by
      facsimile, each of which shall be deemed an original and which together shall
      constitute one and the same agreement.

    

    31. Assignment.
      This
      Agreement, and each right, interest and obligation hereunder, may not be
      assigned by either party hereto without the prior written consent of the other
      party hereto, and any purported assignment without such consent shall be void
      and without effect, except that this Agreement shall be assigned to, and assumed
      by, any person with or into which the Company merges or consolidates, or which
      acquires all or substantially all of its assets, or which otherwise succeeds
      to
      and continues the Company’s business substantially as an entirety. Except as
      otherwise expressly provided herein or required by law, Executive shall not
      have
      any power of anticipation, assignment or alienation of any payments required
      to
      be made to him hereunder, and no other person may acquire any right or interest
      in any thereof by reason of any purported sale, assignment or other disposition
      thereof, whether voluntary or involuntary, any claim in a bankruptcy or other
      insolvency proceeding against Executive, or any other ruling, judgment, order,
      writ or decree. 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
32. Withholding.
      The
      Company may withhold from any and all amounts payable under this Agreement
      such
      federal, state and local taxes, as may be required to be withheld pursuant
      to
      any applicable law or regulation, and all other applicable
      withholdings.

    

    33. Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns. This Agreement is not
      intended, and shall not be deemed, to create or confer any right or interest
      for
      the benefit of any person not a party hereto.

    

    34. Titles
      and Captions.
      The
      titles and captions of the Articles and Sections of this Agreement are for
      convenience of reference only and do not in any way define or interpret the
      intent of the parties hereto or modify or otherwise affect any of the provisions
      hereof.

    

    35. Grammatical
      Conventions.
      Whenever the context so requires, each pronoun or verb used herein shall be
      construed in the singular or the plural sense and each capitalized term defined
      herein and each pronoun used herein shall be construed in the masculine,
      feminine or neuter sense.

    

    36. References.
      The
      terms “herein,” “hereto,” “hereof,” “hereby,” and “hereunder,” and other terms
      of similar import, refer to this Agreement as a whole, and not to any Article,
      Section or other part hereof.

    

    37. No
      Presumptions.
      Each
      party hereto acknowledges that it has had an opportunity to consult with counsel
      and has participated in the preparation of this Agreement. No party hereto
      is
      entitled to any presumption with respect to the interpretation of any provision
      hereof or the resolution of any alleged ambiguity herein based on any claim
      that
      the other party hereto drafted or controlled the drafting of this
      Agreement.

    

    38. Certain
      Definitions.
      As used
      herein:

    

    (a) “Person”
      includes, without limitation, a natural person, corporation, joint stock
      company, limited liability company, partnership, joint venture, association,
      trust, government or governmental authority, agency or instrumentality, or
      any
      group of the foregoing acting in concert.

    

    (b) A
      “Proceeding” is any suit, action, arbitration, audit, investigation or other
      proceeding before or by any court, magistrate, arbitration panel or other
      tribunal, or any governmental agency, authority or instrumentality of competent
      jurisdiction.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
39. Entire
      Agreement.
      This
      Agreement embodies the entire agreement of the parties hereto with respect
      to
      the subject matter hereof and supersedes any prior or contemporaneous agreement,
      commitment or arrangement relating thereto, written or oral, if any, which
      shall
      terminate immediately upon the commencement of the Term, except that each party
      thereto shall (a) remain required to perform any act and to satisfy any
      obligation or condition that such party is required to perform or satisfy
      thereunder with respect to any event occurring or circumstance existing prior
      to
      the commencement of the Term hereof (including, without limitation, the payment
      or delivery to Executive of any compensation, reimbursable expense or employee
      benefit or perquisite to which he may be entitled, but which has not yet been
      paid to him, on account of his employment under any such prior arrangement)
      that
      has not been so performed or satisfied, and (b) retain his or its right under
      any such prior assignment to assert or to allege any claim or cause of action
      relating to or based upon, or otherwise to enforce, any provision thereof with
      respect to any event occurring or circumstance existing during the term thereof.
      

    

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

    

    
      	
              NEW
                MOTION, INC.

            
	 	 
	
              By: 

            	 
	
              Name:

            
	
              Title:

            
	 	 
	
               

            	 
	
              Andrew
                Stollman

            

    

     

    
      
        
        

      

      
        19

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