Document:

Exhibit 10.3

 

CONSULTING AGREEMENT

 

This Consulting Agreement (this “Agreement”),
dated as of October 1, 2013 is entered into by and between Pyramid Oil Company, a California corporation (the “Company”),
and John H. Alexander.

 

WHEREAS, the Consultant resigned, as of
the end of business on the date hereof, from all positions he held with the Company, including his positions as an officer and
director of the Company; and

 

WHEREAS, the Company desires to retain the
Consultant and the Consultant desires to serve the Company on a part-time basis to assist in the transition to new management upon
the terms and provisions set forth herein;

 

NOW, THEREFORE, in consideration of the
mutual promises set forth herein, the Company and the Consultant hereby agree as follows:

 

1.                 
Consulting Relationship. Beginning as of the date of this Agreement and continuing through September 30, 2014, the
Consultant shall be available to provide to the Company, on a part-time basis, but in no event greater than 5 hours per week, the
following consulting services (the “Services”): (i) managing transactional matters; (ii) advising with respect to the
development or disposition of the Company’s assets and properties; and (iii) any other consulting services as the Company
shall determine. The Services shall be rendered by Consultant primarily in Bakersfield, California.

 

2.                 
Fees. In consideration of the Services to be rendered hereunder, the Company shall pay to the Consultant $10,000
per month through September 30, 2014, payable $5,000 on the 10th day of each month and $5,000 on the 25th of each month, in accordance
with the Company’s payroll practices.

 

3.                 
Expenses. The Company shall reimburse the Consultant within 30 days following receipt of appropriate documentation
for necessary and reasonable out-of-pocket business expenses incurred by the Consultant in the performance of the Services; provided,
however, that the Consultant shall not be authorized to incur on behalf of the Company any expenses in excess of $1,000
without the prior consent of the Company.

 

4.                 
Term and Termination. The Consultant shall serve as a consultant to the Company and shall render the Services to
the Company for a period commencing on October 1, 2013 and terminating September 30, 2014, unless earlier terminated by either
party hereto as set forth in this Section 4. This Agreement and the Consultant’s rights and obligations hereunder shall,
under any of the following circumstances, terminate in advance of the time specified in this Section 4, and the Consultant shall
have the right to receive only his Fees that shall be accrued hereunder through the effective date of such termination and shall
have no right to receive any further compensation hereunder from and after the time of such termination:

 

    	 

    	 

    

 

(a)            
Death. This Agreement and the Consultant’s duties hereunder shall terminate immediately upon the Consultant’s
death.

 

(b)           
Termination by the Company. In the event that the Consultant shall become either physically or mentally incapacitated
so as to be incapable of performing his duties as required hereunder, and if such incapacity shall continue for a period of 30
consecutive days, the Company may, at its option, terminate this Agreement and the Consultant’s duties hereunder by written
notice to the Consultant at that time or at any time thereafter while such incapacity continues. The Company may terminate this
Agreement for Cause (as hereinafter defined) at any time upon written notice to the Consultant. “Cause” as used in
this Agreement means that (i) the Consultant has materially breached any of the material terms or conditions of this Agreement,
or (ii) the Consultant has been charged with a felony or with any intentionally fraudulent act that materially damages the business
or reputation of the Company.

 

(c)            
Termination by the Consultant. The Consultant may terminate this Agreement at any time upon written notice to the
Company if the Company shall have materially breached any of the provisions of this Agreement. In the event that this Agreement
is terminated by the Company for any reason other than as described in (a) or (b) above, the Company shall pay to the Consultant
all remaining amounts owed to the Consultant under the full term of this Agreement in one lump sum payment within thirty days of
such termination.

 

5.                 
Independent Contractor. The Consultant’s relationship with the Company shall be that of an independent contractor
and not that of an employee of the Company.

 

(a)            
No Authority to Bind Company. Neither the Consultant, nor any partner, agent or employee of the Consultant, has authority
to enter into contracts that bind the Company or create obligations on the part of the Company without the prior written authorization
of the Company.

 

(b)           
No Benefits. The Consultant acknowledges and agrees that the Consultant will not be eligible for any Company employee
benefits and, to the extent the Consultant otherwise would be eligible for any Company employee benefits but for the express terms
of this Agreement, the Consultant hereby expressly declines to participate in such Company employee benefits.

 

(c)            
Withholding; Indemnification. The Consultant shall have full responsibility for applicable withholding taxes for
all compensation paid to the Consultant under this Agreement, and for compliance with all applicable labor and employment requirements
with respect to the Consultant’s self-employment, sole proprietorship or other form of business organization. The Consultant
agrees to indemnify, defend and hold the Company harmless from any liability for, or assessment of, any claims or penalties with
respect to such withholding taxes, labor or employment requirements, including any liability for, or assessment of, withholding
taxes imposed on the Company by the relevant taxing authorities with respect to any compensation paid to the Consultant.

 

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6.                 
Proprietary Rights. All work performed and all materials developed or prepared for the Company by the Consultant
in rendering the Services are the property of the Company and all title and interest therein shall vest in the Company and shall
be deemed to be works made for hire and made in the course of the services rendered hereunder. To the extent that title to any
such works may not, by operation of law, vest in the Company or such works may not be considered works made for hire, all rights,
title and interest therein are hereby irrevocably assigned to the Company. The Consultant agrees to give the Company and any person
designated by the Company such reasonable assistance, at the Company’s expense, as is required to perfect the rights defined
in this Section 6.

 

7.                 
Indemnification. The Consultant agrees to indemnify and hold the Company harmless from and against any and all claims,
demands, causes of action, losses, damages, liabilities, costs and expenses, including attorneys' fees and costs, arising from
a breach of any of the Consultant’s representations and warranties herein or attributable to or resulting from the Consultant's
gross negligence or willful misconduct in rendering the Services to the Company. The Consultant warrants and represents that the
Consultant has full power and authority to enter into and perform this Agreement. The Company agrees to indemnify and hold the
Consultant harmless from and against any and all claims, demands, causes of action, losses, damages, liability, costs and expenses,
including attorneys' fees and costs, arising out of the Consultant's Services hereunder, other than those arising from the Consultant's
breach of any of his representations and warranties hereunder or the Consultant's gross negligence or willful misconduct.

 

8.                 
Miscellaneous.

 

(a)            
Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of the
parties.

 

(b)           
Sole Agreement. This Agreement constitutes the sole agreement of the parties and supersedes all oral negotiations
and prior writings with respect to the subject matter hereof.

 

(c)            
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon
receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, 48 hours after being deposited
in the regular mail as certified or registered mail (airmail if sent internationally) with postage prepaid, if such notice is addressed
to the party to be notified at such party’s address or facsimile number as set forth below, or as subsequently modified by
written notice.

 

(d)           
Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by
the laws of the State of California, without giving effect to the principles of conflict of laws.

 

(e)            
Dispute Resolution. Any dispute arising out of or relating to this Agreement shall be decided by binding arbitration
by the American Arbitration Association and shall be held in Bakersfield, California. The ruling of the arbitrator shall be final
and may be enforced by any party to such arbitration in any court of competent jurisdiction located in Bakersfield, California.

 

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(f)            
Attorneys’ Fees; Law; Venue. If any legal proceeding or litigation instituted by a party against the other
arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees and costs
as determined by the arbitrator, arbitrators, or court, in addition to any judgment awarded. This Agreement is executed in Kern
County, California and California law shall govern as to the construction, interpretation, and enforcement of this Agreement and
the rights and obligations of the parties to this Agreement; without reference to conflicts of law principles. Proper venue for
any legal proceeding, arbitration, or other litigation arising out of this Agreement shall be in Bakersfield, California, only,
and the parties waive any right to a change of venue. The parties waive their respective rights to a jury trial, it being the parties’
intent that the dispute be heard by a judge only.

 

(g)           
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the
parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and
enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of
the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable
in accordance with its terms.

 

(h)           
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all
of which together will constitute one and the same instrument.

 

(i)             
Effect on Successors in Interest; Assignment. This Agreement shall inure to the benefit of and be binding upon the
heirs, administrators, executors, and successors of each of the parties hereto. The services to be rendered under this Agreement
are personal to and may not be delegated by the Consultant.

 

 

(Signatures on following
page)

 

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The parties have executed this Agreement
on the respective dates set forth below.

 

	 	
        PYRAMID OIL COMPANY

         

         

        By: /s/ Michael Herman

        Michael Herman, Chairman

         

        Date: October 1, 2013

         

        Address:

         

        Pyramid Oil Company

        P.O. Box 832

        Bakersfield, CA 93302

         

         

         

	 	
        JOHN H. ALEXANDER

         

         

        By: /s/ John H. Alexander

        John H. Alexander

         

        Date: October 1, 2013

         

        Address:

        Pryamid Oil Company

        P.O. Box 832

        Bakersfield, CA 93302

        

 

 

    	5Exhibit 10.4

 

INDEMNITY AGREEMENT

 

This Indemnity Agreement (the “Agreement)
is made as of the __ day of September 2013, by and between Pyramid Oil Company , a California corporation (the “Corporation”),
and John H. Alexander (the “Indemnitee”), a director and officer of the Corporation.

 

The parties agree that the following recitals
are true and accurate in every respect:

 

RECITALS

 

A.               
The Corporation and the Indemnitee recognize that the interpretation of statutes, regulations, court opinions and
the Corporation’s Articles of Incorporation and Bylaws is too uncertain to provide the Corporation’s officers and directors
with adequate guidance with respect to the legal risks and potential liabilities to which they may become personally exposed as
a result of performing their duties in good faith for the Corporation.

 

B.                
The Corporation and the Indemnitee are aware of the substantial increase in the number of lawsuits filed against
corporate officers and directors.

 

C.                
The Corporation and the Indemnitee recognize that the cost of defending against such lawsuits, whether or not meritorious,
may impose substantial economic hardship upon the Corporation’s officers and directors.

 

D.               
The Corporation and the Indemnitee recognize that the legal risks, potential liabilities and expenses of defense
associated with litigation against officers and directors arising or alleged to arise from the conduct of the affairs of the Corporation
are frequently excessive in view of the amount of compensation received by the Corporation’s officers and directors.

 

E.                
Section 317 of the California General Corporation Law, which sets forth certain provisions relating to the indemnification
of officers and directors (among others) of a California corporation by such corporation, is specifically not exclusive of other
rights to which those indemnified thereunder may be entitled under any bylaw, agreement, vote of shareholders or disinterested
directors, or otherwise.

 

F.                 
Indemnitee is resigning in all capacities as an officer and director of the Corporation and the Corporation has agreed
that Indemnitee should be secure in the knowledge that certain expenses and liabilities that may be incurred by him following his
resignation will be borne by the Corporation, and the Board of Directors of the Corporation has determined that the following Agreement
is in the best interests of the Corporation and its shareholders.

 

G.               
The Corporation understands that the Indemnitee’s decision to resign his positions with the Corporation was
conditioned on his being furnished with the indemnity set forth below.

 

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A G R E E M E N T

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements set forth below, the Corporation and the Indemnitee agree as follows:

 

1.                 
Resignation. The Indemnitee is simultaneously resigning in all capacities as a director and officer of the
Corporation.

 

2.                 
Definitions.

 

(a)               
The term “Proceeding” shall include any threatened, pending, or completed action, suit or proceeding,
whether brought in the name of the Corporation, against the Corporation, or otherwise; and whether of a civil, criminal, or administrative
or investigative nature, including, but not limited to, actions, suits, or proceedings brought under or predicated upon the Securities
Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, their respective state counterparts or any rule or regulation
promulgated thereunder, in which the Indemnitee may be or may have been involved as a party or otherwise by reason of the fact
that the Indemnitee is or was a director and/or officer of the Corporation, by reason of any action taken by him or of any inaction
on his part while acting as such director and/or officer, or by reason of the fact that he is or was serving at the request of
the Corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other
enterprise, whether or not he is serving in such capacity at the time any indemnified liability or reimbursable expense is incurred.

 

(b)              
The term “Expenses” shall include, but shall not be limited to all damages, judgments, fines, settlements
and charges, attorneys’ fees and costs, expenses of investigation, expenses of defense of legal actions, suits, proceedings,
claims, and appeals therefrom; as well of all like expenses of appeal, attachment, and bonds. “Expenses” shall not
include any judgments, fines or penalties actually levied against the Indemnitee which the Corporation is prohibited by applicable
law from paying.

 

3.                 
Indemnity in Third-Party Proceedings. Subject to Paragraph 8, the Corporation shall defend and indemnify the
Indemnitee and his successors, assigns, heirs, beneficiaries, and agents against and hold the same harmless from any and all Expenses
and all other costs, claims, losses, recoveries, deficiencies, injuries, Proceedings, other legal and administrative proceedings,
and penalties, including attorney's fees and costs, arising from or related to any and all of Indemnitee’s acts or omissions
taken in connection with his positions as a Director, Officer, or Employee of the Corporation to the fullest extent of the law;
provided that it is determined, pursuant to Paragraph 7 or by the court before which such action was brought, that the Indemnitee
acted in good faith and in a manner that he reasonably believed to be in the best interests of the Corporation. Such defense, indemnification,
and hold harmless obligations of the Corporation shall also extend to a criminal proceeding where Indemnitee had no reasonable
cause to believe that his conduct was unlawful. The termination of any such Proceeding by judgment, order of court, settlement,
conviction or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the Indemnitee
did not act in good faith or in a manner that he reasonably believed to be in the best interests of the Corporation, and with respect
to any criminal proceeding, that such person had reasonable cause to believe that his conduct was unlawful.

 

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4.                 
Indemnity in Proceedings by or in the Name of the Corporation. Subject to Paragraph 8, the Corporation shall
defend, indemnify, and hold harmless the Indemnitee to the same extent set out in Section 3 in connection with the prosecution,
defense, or settlement of any Proceeding by or in the name of the Corporation to procure a judgment in its favor by reason of the
fact that the Indemnitee was or is a director and/or officer of the Corporation or is or was serving at the request of the Corporation
as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust or other enterprise; provided,
however, that no indemnification for Expenses shall be made under this Paragraph 4 with respect to any claim, issue, or matter
as to which the Indemnitee shall have been adjudged to be liable to the Corporation, unless and only to the extent that any court
in which such Proceeding is brought shall determine upon application that despite the adjudication of liability, but in view of
all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to a defense, indemnity, and to be held harmless
for such expenses as such court shall deem proper.

 

5.                 
Indemnification of Expenses of Successful Party. Notwithstanding any other provisions of this Agreement, to
the extent that the Indemnitee has been successful on the merits or otherwise in defense of any Proceeding or in defense of any
claim, issue, or matter therein, including the dismissal of an action without prejudice, the Indemnitee shall be indemnified against
all Expenses incurred in connection therewith.

 

6.                 
Advances of Expenses. Expenses incurred by the Indemnitee pursuant to Paragraphs 3 and 4 in any Proceeding
shall be paid by the Corporation in advance of the determination of such Proceeding at the written request of the Indemnitee, if
the Indemnitee shall undertake to repay such amount to the extent that it is ultimately determined that the Indemnitee is not entitled
to a defense or indemnification.

 

7.                 
Right of Indemnitee to Defense and Indemnification Upon Application; Procedure Upon Application. Any defense,
indemnification, or advance under Paragraph 3, 4, or 6 shall be made by the Corporation no later than 30 days after receipt of
the written request of the Indemnitee therefore, unless a determination is made within said 30-day period by (a) the Board of Directors
of the Corporation by a majority vote of a quorum thereof consisting of directors who were not parties to such Proceedings, or
(b) independent legal counsel in a written opinion (which counsel shall be appointed if such a quorum is not obtainable) that the
Indemnitee has not met the relevant standards for indemnification set forth in Paragraphs 3 and 4.

 

The right to a defense and indemnification
or advances as provided by this Agreement shall be enforceable by the Indemnitee in any court of competent jurisdiction. The Corporation
shall bear the burden of proving that a defense, indemnification, or advances are not appropriate. The failure of the Corporation
to have made a determination that a defense, indemnification, or advances are proper in the circumstances shall not be a defense
to the action or create a presumption that the Indemnitee has not met the applicable standard of conduct. The Indemnitee’s
Expenses incurred in connection with successfully establishing his right to a defense, indemnification, or advances, in whole or
in part, in any such Proceeding shall also be indemnified by the Corporation.

 

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8.                 
Indemnification Hereunder Not Exclusive.

 

(a)               
Notwithstanding any other provision of this Agreement, the Company shall not indemnify Indemnitee for any act or
omission or transactions for which indemnification is expressly prohibited by Section 204(a)(11) of the California General Corporation
Law.

 

(b)              
The right to indemnification provided by this Agreement shall not be exclusive of any other rights to which the Indemnitee
may be entitled under the Corporation’s Articles of Incorporation, bylaws, any agreement, any vote of shareholders or disinterested
directors, the California General Corporation Law or otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office. The indemnification under this Agreement shall continue as to the Indemnitee even though
he may have ceased to be a director or officer, and shall inure to the benefit of the heirs and personal representatives of the
Indemnitee.

 

9.                 
Partial Indemnification. If the Indemnitee is entitled under any provision of this Agreement to indemnification
by the Corporation for a portion of his Expenses actually and reasonably incurred by him in any Proceeding but not, however, for
the total amount thereof, the Corporation shall nevertheless indemnify the Indemnitee for the portion of such Expenses to which
the Indemnitee is entitled.

 

10.             
Severability. If any provision of this Agreement or the application of any provision hereof to any person
or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such
provision to other persons or circumstances shall not be affected, and the provision so held to be invalid, unenforceable or otherwise
illegal shall be revised to the extent (and only to the extent) necessary to make it enforceable, valid and legal. 

 

11.             
Disputes; Attorneys’ Fees; Law; Venue. If any legal proceeding or litigation instituted by a party against
the other arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees
and costs as determined by the arbitrator, arbitrators, or court, in addition to any judgment awarded. This Agreement is executed
in Kern County, California and California law shall govern as to the construction, interpretation, and enforcement of this Agreement
and the rights and obligations of the parties to this Agreement; without reference to conflicts of law principles. Proper venue
for any legal proceeding, arbitration, or other litigation arising out of this Agreement shall be in Bakersfield, California, only,
and the parties waive any right to a change of venue. The parties waive their respective rights to a jury trial, it being the parties’
intent that the dispute be heard by a judge only.

 

12.             
Notices. The Indemnitee shall, as a condition precedent to his right to be indemnified under this Agreement,
give to the Corporation written notice as soon as practicable of any claim made against him for which a defense or indemnity will
or could be sought under this Agreement. Notice to the Corporation shall be directed to Pyramid Oil Company, P.O. Box 832, Bakersfield,
California 93302 (or at such other address or to the attention of such other person as the Corporation shall designate in writing
to the Indemnitee). Notices to the Indemnitee shall be sent to the Indemnitee at the address set forth after his name on the signature
page of this Agreement (or at such other addresses the Indemnitee shall designate in writing to the Corporation).

 

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        PYRAMID OIL COMPANY

         

        /s/ Michael Herman                                    

        (Signature)

         

        By: Michael Herman

        Title: Chairman

         

         

	 	
        INDEMNITEE

         

        /s/ John H. Alexander                                   

        (Signature)

         

	 	
        John H. Alexander

         

	 	Address:

8216 Portsmouth Street

Bakersfield, California 93311

 

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