Document:

Exhibit 10.7

Banjo & Matilda, Inc.

EMPLOYMENT CONTRACT: Belinda Storelli
Macpherson

THIS EMPLOYMENT CONTRACT ("Agreement")
is dated as of the 15th day of November 2013, by and between Banjo & Matilda, Inc., a Nevada corporation (the "Company')
and Belinda Storelli Macpherson, an individual ("Executive", "Employee" or “Mrs. Macpherson").

WHEREAS, the Board of Directors of the Company (the "Board")
and Executive each desires that Executive furnish services to the Company on the terms and conditions hereinafter set forth. The
parties enter into this agreement setting forth the terms and conditions of the employment of the Executive with the Company.

NOW, THEREFORE, in consideration of the foregoing
and of the mutual promises and undertakings contained in this Employment Contract, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as
follows:

1.          Employment. The Company hereby agrees to employ the Executive, and the Executive hereby accepts such employment, on
the terms and conditions hereinafter set forth.

2.          Term. The term of Executive's employment under this Agreement shall be for a period of three (3) years, commencing on
November 15, 2013 and ending on November 15, 2016, unless further extended or sooner terminated as hereinafter provided.

On November 15,
2016 and on the last day of November each third year thereafter, this Agreement shall be automatically extended for three (3)
years, he last day of the Term, as from time to time extended, is hereinafter referred to as the "Expiration Date."
The Company or Executive may elect to terminate the automatic extension of the Term set forth in this section by giving written
notice of such election on or before August 30th of any Expiration Date year Upon the giving of such notice, Executive's
employment under this Agreement shall terminate on the Expiration Date (as last extended).

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3.          Position
and Duties. During the Term of this Agreement, Executive shall be employed as Chief Creative Officer of the Company and
shall be a member of the Company’s Board of Directors. In this capacity Executive shall have overall authority for all
design, the creative development and brand management of the Company and the subsidiaries and affiliates of the Company of
which she serves as Chief Creative Officer, Executive hereby accepts such employment and agrees to perform the customary
duties of a Chief Creative Officer and accepts such other duties as may be set forth herein.

Executive shall be responsible for the following:

		·	design of the company's products

 

		·	brand management and development.

 

		·	Overall creative development and direction of the brand.

4.          Compensation
and Related Matters.

a.          
Base Salary. As compensation for the performance by the Executive of her duties hereunder, the Company shall pay the
Executive an annual base salary of $100,000 for the period commencing October 01, 2013 through and including January 1, 2014
which base pay shall be increased each January 1st for the subsequent twelve (12) month periods by a minimum of
six percent (6%). In addition, the Board shall meet at this time to discuss and review any additional potential pay increases
based upon performance.

b.          
Annual Bonus/Incentive Compensation. In addition to the compensation described in subparagraph a. above, Executive may receive
such additional compensation, if any, in the form of an annual incentive bonus, as may be approved by the Company's Board of Directors
during the annual review.

c.          
Stock Issuances. Executive will receive a signing bonus in the form of common stock as a performance incentive. Executive will
receive: 1) an issuance of Common Stock as set forth below;

a) Issuance of Common Stock.
Executive shall receive four hundred thousand shares of the COMPANY’s Restricted Common Stock upon execution of this Agreement.

d.          
Life and Disability Insurance Premium. COMPANY shall pay Executive's premium on her personal life insurance policy for the
period [he or she] performs the duties of EXECUTIVE in an amount which is reasonable and commercially customary. EXECUTIVE shall
receive disability insurance in an amount which is reasonable and commercially customary.

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e.          
Vacation and sick leave. Paid vacation of four (4) weeks per year, which vacation shall be taken at such times as are
mutually convenient to Executive and the Company. Paid sick leave for up to 21 days per year.

f.          
Medical
and Dental Insurance. COMPANY shall either provide to EXECUTIVE and pay the full premium for a comprehensive family health
medical and dental insurance policy or if EXECUTIVE elects to provide [his or her] own health insurance, pay to EXECUTIVE an amount
equal to the cost of providing said comprehensive family health insurance policy.

g.          
Accrual of Base Salary. If COMPANY and EXECUTIVE deem it in the parties best interest to not pay the EXECUTIVE her
base salary as set forth above, said salary shall accrue with a 12% annual interest rate, the accrued salary may be converted
at the EXECUTIVE’s sole discretion into the COMPANY’S Common Stock. The interest shall be paid in cash. The conversion
price shall be 50% of the Company’s average closing bid price during the thirty day period prior to the COMPANY’s
receiving conversion notice from the EXECUTIVE. Accrued Salary= A, Average Thirty Day Bid Price=B, Conversion Share Price=C, Shares
issued in Lieu of Compensation=S. (B *

.50 = C, and = S)

For example if the EXECUTIVE accrues $10,000
in salary and the COMPANY’s average Bid Price during the 30 day period is $1.00, the conversion share price would be $0.50.
Therefore when you divide the 10,000 in accrued salary by the .50 Conversion Share Price you have 20,000 shares of restricted common
stock which would be issued in lieu of compensation.

5.          Representations and Warranties of the
Executive. The Executive, in relation to the issuance of common shares (“Securities”) of the Company herein, hereby
represents and warrants as of the Closing Date to the Company as follows:

(a)     Authority. Executive has the power and authority to enter into and to consummate the transactions contemplated by
the Employment Agreement and otherwise to carry out her obligations hereunder and thereunder.

(b)     Own
Account. Executive understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for her own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law.

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(c)     Executive Status  . At the
time such Executive was offered the Securities, she was, and at the date hereof she is, an “accredited investor” as
defined in Rule 501(a) under the Securities Act. Such Executive is not required to be registered as a broker dealer under Section
15 of the Exchange Act.

(d)     Experience of Such Executive  . Executive, either alone or together with her representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Securities, and has so evaluated the merits and risks of such investment. Such Executive is able to bear the
economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

(e)     General Solicitation  . Executive
is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities
published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any
other general solicitation or general advertisement.

(f)     Short Sales. Other than consummating
the transactions contemplated hereunder, Executive has not directly or indirectly, nor has any Person acting on behalf of or pursuant
to any understanding with such Executive, executed any purchases or sales, including Short Sales, of the securities of the Company
during the period commencing from the time that such Executive began discussing this Agreement with the Company (“ Discussion
Time  ”) .

6.          Representations and Warranties of the
Company. The Company hereby represents and warrants as of the Closing Date to the Executive as follows:

(a)     Organization and
Qualification  . The Company and each Subsidiary is an entity duly formed, validly existing and in good standing under the
laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and
use its properties and assets and to carry on its business as currently conducted. Each of the Company and the Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse
effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results
of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as
a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis
its obligations under any Transaction Document (any of (i), (ii) or (iii), a “ Material
Adverse Effect  ”) and no action or proceeding has been instituted in any such jurisdiction revoking, limiting
or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

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(b)     Authorization;
Enforcement. The Company and the Subsidiaries have the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by the Employment Agreement and otherwise to carry out their obligations hereunder and
thereunder. The execution of the Employment Agreement by the Company and the Subsidiaries and the consummation by them of the
transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and
the Subsidiaries and no further action is required by the Company, the Subsidiaries, the Board of Directors, the board of directors
of each Subsidiary or their stockholders in connection therewith other than in connection with the Required Approvals. The Employment
Agreement has been (or upon delivery will have been) duly executed by the Company and the Subsidiaries, as applicable, and, when
delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company and
the Subsidiaries enforceable against the Company and the Subsidiaries in accordance with its terms, except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law.

(c)     No
Conflicts. The execution, delivery and performance of the Employment Agreement by the Company and the Subsidiaries
and the consummation by the Company and the Subsidiaries of the other transactions contemplated hereby and thereby do not and
will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate of incorporation,
bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets
of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, loan or credit facility, debt or other instrument (evidencing a Company
or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property
or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result
in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

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(d)     Filings, Consents and Approvals  . Neither the Company nor any Subsidiary is required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local
or other governmental authority or other Person in connection with the execution, delivery and performance by the Company and the
Subsidiaries of the Employment Agreement, other than those obtained and/or made prior to or as of the Closing Date, and the filing
of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively,
the “ Required Approvals  ”).

(e)     Issuance of the Securities  . The Securities are duly authorized and, when issued and paid for in accordance with
the applicable Employment Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company other than restrictions on transfer provided for in the Employment Agreement. The Common Shares, when issued
in accordance with the terms of the Employment Agreement, will be validly issued, fully paid and nonassessable, free and clear
of all Liens imposed by the Company other than restrictions on transfer provided for in the Employment Agreement. The Company has
reserved from its duly authorized capital stock a number of shares of Common Stock for issuance.

(f)     SEC
Reports; Financial Statements. To the Company’s knowledge, the Company has filed all reports, schedules, forms, statements
and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section
13(a) or 15(d) thereof, for the 12 months preceding the date hereof (the foregoing materials, including the exhibits thereto and
documents incorporated by reference therein, being collectively referred to herein as the “ SEC Reports  ”).
To the Company’s knowledge, as of their respective dates, the SEC Reports complied as to form in all material respects with
the disclosure requirements of the Securities Act and the Exchange Act, as applicable, and, to the Company’s knowledge none
of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. To the Company’s knowledge the financial statements of the Company included in the SEC Reports
comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“ GAAP  ”), except
as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

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(g)     Certain Fees. No brokerage or finder’s
fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by the Employment Agreement. The Executive
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this section that may be due in connection with the transactions contemplated by the Employment Agreement.

7.          Reimbursement
of Expenses. The Executive may incur reasonable expenses for furthering the Company's business, including expenses for entertainment,
travel, meals, and similar items. The Company shall reimburse Executive for all business expenses after the Executive presents
an itemized account of expenditures, pursuant to Company policy.

8.          Devotion to Company. The Executive will devote substantially her full time, attention, and energies to the business
of the Company, its affiliates and subsidiaries during this employment. The Company understands that Executive is engaged in other
non-competing businesses, and Executive is not prohibited from an active involvement in the operation of said business, however
the parties do anticipate that Executive will devote substantially her full time not less than 70% of his work time) to Company.

9.          Termination
by Executive. Executive may terminate her employment hereunder by giving thirty days written notice to the Company, in which
event such termination shall become effective at the end of the notice period, or earlier as may be specified by the Company after
receipt of Executive's Notice of Termination.

10.          Termination
by Company. With or without cause, the Company may terminate Executive's employment at any time prior to the expiration
of the three-year term upon 180 days' written notice to the Executive. If terminated the Executive will be paid her regular salary
up to the date of termination. In addition, the Company will pay the Executive on the date of the termination a severance allowance
of fifty percent (50%) of the total salary compensation Executive would have been entitled to for the remainder of her Term of
employment. The Company will pay any required withholding tax on said severance allowance without deducting the same from the
amount to be paid to Executive.

11.          Notice of Termination. Any purported termination of the Executive's employment shall be communicated by written Notice
of Termination to the other party hereto. If such notice is served by the Company on the Executive, to be effective, it must include
the signatures of the majority of the board of directors approving such termination and thanking Executive for her service to date.

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12.          Termination Benefits, Upon the expiration or termination of this Agreement or Executive’s employment, by either
party for any reason, Company shall continue to provide Executive with life and disability insurance and family health insurance
described above for a period of thirty six (36) months from said termination/expiration. Company will make all reasonable efforts
to allow Executive to continue such coverage thereafter at Executives own expense. This provision shall survive the expiration
or termination of this agreement for any reason.

13.          Death Benefit. Should Executive die during the term of employment, the Company shall pay to Executive's designee, the
greater of two hundred thousand dollars ($200,000) or fifty percent (50%) of the total salary compensation Executive would
have been entitled to for the remainder of her Term of employment, whichever is greater, Company will also continue to pay the
medical and health benefits for Executive's family for a period of three (3) years, in addition to the benefits to Executives spouse,
provided in section 12 above.

14.          Covenant Not to Compete. If the Executive receives Termination Benefits of at least $100,000 under paragraph 10 herein,
the following Covenant Not to Compete shall be triggered.

a.     Term. The Executive
shall not compete for a period of six months.

b.     Scope. The Executive
shall not perform services whether as an Employee, Independent Contractor or Consultant for any third party involved in the design,
manufacture, sale or distribution of premium contemporary knitwear.

c.     Geographical Restrictions. This Covenant not to Compete shall be limited to a seventy five mile radius around areas which the
Company designs, manufactures or sells premium contemporary knit wear.

d.     Non-Solicitation.
The Executive shall not solicit the Company’s Employees, manufacturers, distributors or customers during the term of this
Non Compete.

15.          CHOICE OF LAW. It is the intention of the parties to this Agreement that this Agreement and the performance under this
Agreement, and all suits and special proceedings under this Agreement, be construed in accordance with and under the Laws the State
of Nevada.

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16.          DISPUTED COMPENSATION. In the event that the Company should at anytime dispute any payment or vesting of compensation
as provided herein to executive, Company agrees that it will provide Executive with a timely and immediate written notice of such
dispute detailing the specific compensation that it disputes and detailing all of the legal reasons and the detailed factual basis
for its objection thereto. Such written notice will be provided to Executive in advance of the payment or vesting of any such disputed
payment to Executive. Providing such a notice does not eliminate or obviate the Company's responsibility to make such a payment
of compensation, its dispute or objection notwithstanding.

In the event that the reasons for the dispute or
objection arise after the disbursement or vesting of such compensation to Executive, then Company agrees that it will provide notice
to Executive at the earlier of twenty one (21) days from the date of any such disbursement or vesting if Company knew or reasonably
should have known of the basis for such an objection within seven (7) days of such disbursement or vesting, or if Company did not
know or reasonably could not be expected to known of the basis for such an objection, within one hundred and thirty one (131) days
of the disbursement, payment or vesting of such benefit. Any request or demand by the Company for reimbursement of compensation
paid to Executive pursuant to this agreement is waved if not made within the limitation period described in this paragraph. No
action will be brought or maintained by the Company against Executive, either in a court of law or in arbitration, or otherwise,
to recover compensation paid to executive if the Company has not complied with this section 16.

Under no circumstances will any
action be brought or maintained by the company against executive, either in a court of law or in arbitration, or otherwise,
to recover compensation already vested or paid to executive, even if prior notice of the dispute or objection as described
above has been served, if more than three hundred and sixty five (365) days have passed since the payment or vesting which
the company would otherwise seek to recover or overturn.

This section 16 shall not apply to any compensation
that Executive should receive that is over and above the compensation specifically described in this Agreement.

17.          NO WAIVER. The
failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement,
or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as thereafter waiving
any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver
had occurred.

18.          PARAGRAPH HEADINGS. The titles to the paragraphs of this Agreement are solely for the convenience of the parties and
shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement.

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19.          COMPLETE AGREEMENT, This Agreement contains the complete agreement concerning the employment arrangement between the
parties. The parties stipulate that neither of them has made any representation with respect to the subject matter of this Agreement
or any representation including the execution and delivery of this Agreement except such representations as are specifically set
forth in this Agreement and each of the parties acknowledges that [he or she] or it has relied on its own judgment in entering
into this Agreement. The parties further acknowledge that any representations that may have been made by either of them to the
other prior to the date of executing this Agreement are of no effect and that neither of them has relied thereon in connection
with [his or her] dealings with the other.

20.          INDEMNIFICATION. Company
shall indemnify Executive to the maximum extent allowable under the applicable jurisdictions laws including but not limited
to against any and all expenses, including amounts paid upon judgments, counsel fees, environmental penalties and fines, and
amounts paid in settlement (before or after suit is commenced),incurred by the Executive in connection with [his
or her] defense or settlement of any claim, action, suit or proceeding in which [he or she] is made a party or which may be
asserted against [him or her} by reason of [his or her] employment or the performance of duties in this Agreement or as an
officer or director of the Company or otherwise in connection to the Company. Such indemnification shall be in addition to
any or rights to which Executive may be entitled under any law, the articles of incorporation, the bylaws, any agreement, or
otherwise. This provision shall survive the expiration or termination of this agreement for any reason,

21.          Assumption of Agreement by Company's Successors
and Assignees. The Company's rights and obligations under this agreement will inure to the benefit and be binding upon the
Company's successors and assignees.

22.          Legal
Fees. In the event of any dispute or proceeding arising under this Agreement where the Executive is ultimately the
substantially prevailing party, the Company shall promptly reimburse Executive for all costs, including without limitation,
the reasonable attorneys' fees of any attorney of the Executive's choosing, incurred by the Executive in any such dispute or
proceeding arising under this Agreement.

23.          Assignment. This
Agreement is intended to survive the Eastern World merger after that it shall not be assignable by either party without the
prior written consent or the other party, However:

(1)         
It maybe assigned by the Company to any person or entity acquiring all or substantially all of the assets thereof, however
Company will remain as a guarantor of obligations hereunder: and

(2)         
It may be assigned by Executive as to his right to payment, but not as to any of his obligations hereunder; and

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24.          Severability of Provisions. If any of
the provisions of this Agreement or the application of any such provision shall for any reason be held invalid by a court of competent
jurisdiction, such invalidity shall not affect or impair any other provision, it being the intention of the parties that such other
provisions shall be and remain in full force and effect.

25.          Notices. Ali
notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall deemed to
have been given at the time when mailed at any office of the United States Postal Service enclosed in a certified
postage-paid envelope addressed to the respective party at the addresses set forth below (together with an electronic copy to
the designated e-mail addresses listed below if notice is being served on Executive) or to such changed address as such party
may have fixed by notice to the other party, provided, however, that any notice or change of address shall be affected only
upon receipt and further provided that any notice may be personally delivered to the respective party by the party giving
notice in lieu of being mailed.

If to Company:

 

Banjo & Matilda Inc.

76 William St Paddington NSW

Australia 2021

Fax +61 (0) 2 811 1213

Phone +61 (0) 2 8096 2665

 

If to Executive:

 

BELINDA STORELLI

MACPHERSON

PO BOX 3438 Tamarama NSW

2026

+61 (0) 413 83 66 33

Belynda@banjoandmatilda.com

 

Either party may waive this notice provision by
providing a written acknowledgement to the other party that the first party has received effective notice.

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26.          Binding
Effect. This Agreement shall inure to the benefit of and shall be binding upon the Company, its successors and
assigns, and any corporation which may acquire all or substantially all of the Company's assets or into which the Company may
be consolidated or merged, and shall inure to the benefit of Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. Upon the Executive's death, all amounts, warrants,
and other compensation, to which she is entitled hereunder, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the Executive's designee, or, if there be no such designee, to the Executive's
estate.

27.          Vesting of compensation and benefits. Executive's (and where applicable Executive's Spouse's and Designee's) right(s) to the
compensation and benefits described in this Agreement are fully vested as of the date of this Agreement.

28.          Bankruptcy, Security and Liens. It is the intention of the parties that to the greatest extent allowable under the law, the
rights and obligations of this employment agreement shall not be waved or subordinated by any bankruptcy.

29.          Execution in Counterparts. This Agreement may be executed by the parties hereto signing the same instrument, or by each party
hereto signing a separate counterpart or counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument. The parties agree that documents executed by facsimile or electronic transmission
shall be acceptable in this transaction, and the signatures thereof shall have the same force and effect as original signatures.

30.          Waiver. The failure of any party
to insist in any one or more Instances upon performance of any terms or conditions of this Agreement shall not be construed as
a waiver of future performance of any such term, covenant or conditions, but the obligations of either party with respect thereto
shall continue in full force and effect.

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement under seal the day and year above first written.

	Executive	
	
	BELINDA STORELLI MACPHERSON	BRENDAN MACPHERSON

 

    	12Exhibit 10.9

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is made
as of this 22nd day of August, 2013, by and between Simulations Plus, Inc., a California corporation
(the “Company”) and Walter S. Woltosz, an individual (the “Employee”) with reference to the following facts:

 

A.The Company desires to secure the services of the Employee
as President and Chief Executive Officer.

 

B.The Employee agrees to perform such services for the Company
under the terms and conditions set forth in this Agreement.

 

In consideration of the mutual promises, covenants and conditions
set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it
is hereby agreed by and between the Company and the Employee as follows:

 

1.Representations and Warranties.

 

The Company represents and warrants that it is empowered under
its Articles of Incorporation and Bylaws to enter into this Agreement. The Employee represents and warrants that he is under no
employment contract, bond, confidentiality agreement, or any other obligation that would violate or be in conflict with the terms
and conditions of this Agreement or encumber his performance of duties assigned to him by the Company. The Employee further represents
and warrants that he has not signed or committed to any employment or consultant duties or other obligations that would divert
his full attention from the duties assigned to him by the Company by this Agreement.

 

2.Employment and Duties.

 

The Company employs the Employee as President and Chief Executive
Officer and the Employee hereby accepts such employment (the “Employment”).

 

3.Term.

 

Subject to the provisions of Section 5, the term of this Agreement
shall extend until August 31, 2014, commencing on September 1, 2013.

 

4.Compensation.

 

In full and complete consideration for the Employment, each
and all of the services to be rendered to the Company by the Employee, and each and all of the representations, warranties, covenants,
agreements and promises undertaken by the Employee pursuant to this Agreement, the Employee shall be entitled to receive compensation
as follows:

 

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4.1.Base Salary. The Employee shall receive from
the Company a base salary of three hundred thousand dollars ($300,000.00) per year, payable in equal, monthly installments. From
each said salary payment the Company will withhold and pay to the proper governmental authorities any and all amounts required
by law to be withheld for federal income tax, state income tax, federal Social Security tax, state disability insurance premiums,
and any and all other amounts required by law to be withheld from the Employee’s salary.

 

4.2.Grant of Option. The Employee shall be granted
an option under the 2007 Stock Option Plan, exercisable for five (5) years, to purchase ten (10) shares of Common Stock for each
one thousand dollars ($1,000) of net income before taxes that the Company earns at the end of each fiscal year (up to a maximum
of twenty thousand [20,000] options over the term of this Agreement) at an exercise price 10% over the market value per share as
of the date of grant. The maximum number of options under this grant shall be adjusted accordingly for any stock split or reverse
split after the date of this agreement. Option grants under this agreement shall be issued within ten days after the filing of
the annual report (10-K) for the fiscal year for which the option is granted.

 

4.3Performance Bonus. The Employee shall be paid
a Performance Bonus in an amount equal to five percent (5%) of the Company’s net income before taxes of the previous fiscal
year, not to exceed $60,000.

 

4.4.Benefits. Employer shall provide to Employee
at the sole cost to Employer, and Employee shall be entitled to receive from Employer, such health insurance and other benefits
which are appropriate to the office and position of Employee, adequate to the performance of his duties and not inconsistent with
that which Employer customarily provides at the time to its other management employees. Employee’s right to vacation and
sick leave shall be determined in accordance with the policies of the Company as may be in effect from time to time and as are
approved by the Company’s Board of Directors. Employee shall have the right to reimbursement of customary, ordinary and necessary
business expenses incurred in connection with the rendering of services and performance of the functions required hereunder in
accordance with the policies of the Company as may be in effect from time to time and as are approved by the Company’s Board
of Directors. Such expenses are reimbursable only upon presentation by Employee of appropriate documentation pursuant to the policies
adopted by the Company’s Board of Directors.

 

5.Termination of Employment.

 

5.1.Expiration of the Term of Agreement. This Agreement
shall be automatically terminated upon the expiration of the term of the agreement as described in paragraph 3 of this Agreement,
or as sooner agreed by both Employee and Company in the event this Agreement is superseded by a new agreement. Upon such termination,
the Company shall have no further liability to the Employee for any payment, compensation or benefit whatsoever under this Agreement.

 

5.2.By Death. This Agreement shall be terminated
upon the death of the Employee. The Company’s total liability in such event shall be limited to payment of the Employee’s
salary and benefits through the date of the Employee’s death.

 

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5.3.By Disability. If, in the sole opinion of the
Company’s Board of Directors, the Employee shall be prevented from properly performing his or her duties hereunder by reason
of any physical or mental incapacity for a period of more than 90 days in the aggregate in any twelve month period, then, to the
extent permitted by law, his or her employment with the Company shall terminate. The Company’s total liability in such event
shall be limited to payment of the Employee’s salary and benefits through the effective date of termination upon disability.

 

5.4.For Cause. The Company reserves the right to
terminate this Agreement immediately, at any time, if, in the reasonable opinion of the Company’s Board of Directors: the
Employee breaches or neglects the duties which he or she is required to perform under the terms of this Agreement; commits any
material act of dishonesty, fraud, misrepresentation, or other act of moral turpitude; is guilty of gross carelessness or misconduct;
fails to obey the lawful direction of the Company’s Board of Directors; or acts in any way that has a direct, substantial
and adverse effect on the Company’s reputation. The Company’s total liability to the Employee in the event of termination
of the Employee’s employment under this paragraph shall be limited to the payment of the Employee’s salary and benefits
through the effective date of termination.

 

5.5.Without Cause. The Company reserves the right
to terminate this Agreement without cause for any reason whatsoever upon thirty (30) days’ written notice to the Employee.
Upon termination under this subsection, the Employee shall receive payment of an amount equal to twelve (12) months of the Employee’s
base salary or the Employee’s base salary for the remaining term of this Agreement, whichever is greater. Other than payment
of the amount as described in this paragraph, the Company shall have no further obligation to pay the Employee any other compensation
or benefits whatsoever. The Employee hereby agrees that the Company may dismiss him or her under this paragraph 5.5 without regard
(i) to any general or specific policies (whether written or oral) of the Company relating to the employment or termination of its
employees, or (ii) to any statements made to the Employee, whether made orally or contained in any document, pertaining to the
Employee’s relationship with the Company.

 

5.6.Mutual Consent. This Agreement shall be terminated
upon mutual written consent of the Company and the Employee. The Company’s total liability to the Employee in the event of
termination of the Employee’s employment under this paragraph shall be limited to the payment of the Employee’s compensation
through the effective date of termination.

 

5.7.Termination of Obligations. Upon termination
of employment for any reason whatsoever, the Employee shall be deemed to have resigned from all offices and directorships then
held with the Company. Termination of employment shall have no effect on the Employee’s position(s) on the Company’s
board of directors. The board of directors and shareholders will determine the Employee’s eligibility to continue to serve
as a member of the board.

 

6.Restrictions on Use or Disclosure of Confidential Matters,
Proprietary Information and Trade Secrets.

 

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6.1.During the term of this Agreement, the Employee may
be dealing with trade secrets of the Company, including without limitation, customer lists, client contacts, financial information,
inventions and processes, all of a confidential nature that are the Company’s property and are used in the course of the
Company’s business. The Employee will not disclose to anyone, directly or indirectly, any of such trade secrets or use them
other than as necessary in the course of his duties with the Company. All documents that the Employee prepares, or confidential
information that might be given to him or that Employee himself might create in the course of his consultation with the Company,
are the exclusive property of the Company. During the term of this Agreement and at any time thereafter, the Employee shall not
publish, communicate, divulge, disclose or use any of such information which has been reasonably designated by the Company as proprietary
or confidential or which from the surrounding circumstances the Employee knows, or has good reason to know, or should reasonably
know, ought to be treated by the Employee as proprietary or confidential without the prior written consent of the Company, which
consent may not be unreasonably withheld by the Company.

 

6.2.In the course of his employment for the Company, Employee
will develop a personal relationship with the Company’s customers and knowledge of those customer’s affairs and requirements
which may constitute the Company’s only contact with such customers. Employee consequently agrees that it is reasonable and
necessary for the protection of the goodwill and business of the Company that Employee make the covenants contained herein. Accordingly,
Employee agrees that while he is in the Company’s employ and for a one (1) year period after the termination of such employment
for any reason whatsoever, he will not directly or indirectly:

 

(a)attempt in any manner to solicit from any customer
(except on behalf of the Company) business of the type performed by the Company or to persuade any customer of the Company to cease
to do business or reduce the amount of business which any such customer has customarily done or contemplates doing with the Company,
whether or not the relationship with the Company and such customer was originally established in whole or in part through Employee’s
efforts; or

 

(b)engage in any business as, or own an interest
in, directly or indirectly, any individual proprietorship, partnership, corporation, joint venture, trust or any other form of
business entity if such business form or entity is engaged in the business in which the Company is engaged;

 

(c)render any services of the type rendered by
the Company to or for any customer of the Company;

 

(d)employ or attempt to employ or assist anyone
else to employ any person who is then or at any time during the preceding year in the Company’s employ.

 

This entire Section 6 shall survive termination of this Agreement.

 

7.Company Property.

 

7.1.Any patents, inventions, discoveries, applications or
processes, software and computer programs devised, planned, applied, created, discovered or invented by the Employee in the course
of the engagement under this Agreement and which pertain to any aspect of the business of the Company, or its subsidiaries, affiliates
or customers, shall be the sole and exclusive property of the Company, and the Employee shall make prompt report thereof to the
Company and promptly execute any and all documents reasonably requested to assure the Company the full and complete ownership thereof.

 

    	4

    	 

    

7.2.All records, files, lists, drawings, documents, equipment
and similar items relating to the Company’s business which the Employee shall prepare or receive from the Company shall remain
the Company’s sole and exclusive property. Upon termination of this Agreement the Employee shall return promptly to the Company
all property of the Company in his possession and the Employee represents and warrants that he will not copy, or cause to be copied,
printed, summarized or compiled, any software, documents or other materials originating with and/or belonging to the Company, including,
without limitation, documents or other materials created by the Employee for, or on behalf of, the Company. The Employee further
represents and warrants that he will not retain in his possession any such software, documents or other materials in machine or
human readable form.

 

7.3.This Section 7 shall survive termination of this Agreement.

 

8.Outside Activities. During the term of this Agreement,
the Employee shall not, directly or indirectly, either as an officer, director, employee, representative, principal, partner, shareholder,
employee, agent or in any other capacity, engage or assist any third party in engaging in any business competitive with the business
of the Company, without the prior written consent of the Company, which consent may be withheld by the Company in its sole and
absolute discretion. Following his employment with the Company, the Employee shall not engage in unfair competition with the Company,
aid others in any unfair competition with the Company, in any way breach the confidence that the Company has placed in the Employee
or misappropriate any proprietary information of the Company.

 

9.Reports. The Employee, when directed, shall provide
written reports to the Company with respect to the services provided hereunder.

 

10.Strict Loyalty. The Employee hereby covenants
and agrees to avoid all circumstances and actions that reasonably would place the Employee in a position of divided loyalty with
respect to his obligations under this Agreement.

 

11.Assignment. This Agreement may not be assigned
to another party by the Employee without the prior written consent of the Company, which consent may be withheld by the Company,
in its sole and absolute discretion.

 

12.Arbitration. Except as otherwise provided herein
in Section 15.11, any controversy between the Company and Employee in connection with this Agreement, including, without limitation,
any dispute or claim arising from the voluntary or involuntary termination hereof, shall be settled by final and binding arbitration
in Los Angeles, in accordance with the Commercial Arbitration Rules of the American Arbitration Association. Judgment of such award
may be entered in a court of competent jurisdiction. Employee and the Company shall each pay the fees of his or its own attorneys,
the expenses of his or its witnesses and all other fees and expenses connected with presenting his or its case at arbitration.
All other costs of the arbitration, including, without limitation, the costs of any record or transcript of the arbitration proceedings,
administrative fees, the fee for the arbitrator and all other fees and costs shall be borne equally by the Company and Employee.

 

    	5

    	 

    

13.Company Bylaws, Directions, Policies, Practices, Rules,
Regulations and Procedures. Employee agrees to become and remain thoroughly familiar with each and all of the Company’s
bylaws, directions, policies, practices, rules, regulations and procedures that relate to the employment and/or to any of Employee’s
duties and/or responsibilities as an employee of the Company and to abide fully and by each and all of such bylaws, directions,
policies, practices, rules, regulations and procedures. During the term of employment, Employee shall be fully bound by and employed
pursuant to each and all of the Company’s bylaws, directions, policies, practices, rules, regulations and procedures as now
in effect or as may be implemented, modified or otherwise put into effect by the Company during the term of employment, regardless
of whether such bylaws, directions, policies, practices, rules, regulations and procedures are oral or are set forth in any manual,
handbook or other document, and it is solely the responsibility of Employee to become and remain fully aware of and familiar with
each and all such directions, policies, practices, rules, regulations and/or procedures. In the event of any conflict between any
provision of this Agreement and any provision of the Company’s directions, policies, practices, rules, regulations and/or
procedures, the provisions of this Agreement govern for any and all purposes whatsoever.

 

14.Indemnification. The Company shall indemnify and
hold Employee harmless from any and all claims, demands, judgments, liens, subrogation or costs incurred by Employee with respect
to any shareholder derivative action or other claims or suits against the Company and/or its Board of Directors by individuals,
firms or entities not a party to this Agreement to the maximum extent permitted under California law.

 

15. General.

 

15.1.Further Documents. Each party shall execute
and deliver all further instruments, documents and papers, and shall perform any and all acts necessary reasonably requested by
the other party, to give full force and effect to all of the terms and provisions of this Agreement.

 

15.2.Successors and Assigns. Except where expressly
provided to the contrary, this Agreement, and all provisions hereof, shall inure to the benefit of and be binding upon the parties
hereto, their successors in interest, assigns, administrators, executors, heirs and devises.

 

15.3.Severability. Whenever possible, each provision
of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision of
this Agreement, as applied to any party or to any circumstance, shall be found by a court or arbitrator to be invalid or unenforceable
under applicable law, such provision will be ineffective only to the extent of such invalidity or unenforceability, without invalidating
or rendering unenforceable the remainder Of such provision and any such invalidity or unenforceability shall in no way affect any
other provision of this Agreement, the application of any provision in any other circumstance or the validity or enforceability
of this Agreement.

 

    	6

    	 

    

15.4.Notices. All notices or demands shall be in
writing and shall be served personally, telegraphically or by express or certified mail. Service shall be deemed conclusively made
at the time of service if personally served, at the time that the telegraphic agency confirms to the sender deliver thereof to
the addressee if served telegraphically, 24 hours after deposit thereof in the United States mail properly addressed and postage
prepaid, return receipt requested, if served by express Mail, and five days after deposit thereof in the United States mail, properly
addressed and postage prepaid, return receipt requested, if served by certified mail. Any notice or demand to the Company shall
be given to:

 

Simulations Plus, Inc.

42505 10th Street West

Lancaster, CA 93534-7059

(661) 723-7723 Telephone

(661) 723-5524 Facsimile

Attention: Compensation Committee

 

and any notice or demand to the Employee shall be given to:

 

Mr. Walter S. Woltosz

42505 10th Street West

Lancaster, CA 93534-7059

(661) 723-7723 Telephone

(661) 723-5524 Facsimile

 

Any party may, by virtue of a written notice in compliance with
this paragraph, alter or change the address or the identity of the person to whom any notice, or copy thereof, is to be sent.

 

15.5.Waiver. A waiver by any party of any of the
terms and conditions of this Agreement in any one instance shall not be deemed or construed to be a waiver of the term or condition
for the future, or of any subsequent breach thereof or of any other term or condition thereof. Any party may waive any term, provision
or condition included for the benefit of that party. Any and all waivers shall be in writing.

 

15.6.Construction. This Agreement shall be governed
by and construed in accordance with the laws of the State of California applicable to contracts entered into and fully to be performed
therein without regard to its principles of choice of law or conflicts of law. In all matters of interpretation, whenever necessary
to give effect to any provision of this Agreement, each gender shall include the others, the singular shall include the plural,
the plural shall include the singular and the terms “and” and “or” may be used interchangeably as the context
so requires or implies. The title of the sections of this Agreement are for convenience only and shall not in any way affect the
interpretation of any provision or condition of this Agreement. All remedies, rights, undertakings, obligations and agreements
contained in this Agreement shall be cumulative and none of them shall be in limitation of any other remedy, right, undertaking,
obligation or agreement of any party.

 

    	7

    	 

    

15.7.Entire Understanding. This Agreement contains
the entire understanding of the parties hereto relating to the subject matter contained herein and supersedes all prior and collateral
agreements, understandings, statements and negotiation of the parties. Each party acknowledges that no representations, inducements
or promises, oral or written, with reference to the subject matter hereof have been made other than as expressly set forth herein.
This Agreement cannot be changed, rescinded or terminated orally.

 

15.8.Third Party Rights. The parties hereto do not
intend to confer any rights or remedies upon any person other than the parties hereto and those referred to in Section 15.2 hereof
so long as any such assignment by Employee was approved by the Company as provided in Section 11 hereof.

 

15.9.Attorneys’ Fees. In the event of any litigation
between the parties respecting or arising out of this Agreement, the prevailing party shall be entitled to recover reasonable legal
fees and costs, whether or not the litigation proceeds to final judgment or determination.

 

15.10.Place of Litigation. Any litigation between
the parties shall occur in the County of Los Angeles, California.

 

15.11.Injunctive Relief. Since a breach of the provisions
of Sections 6, 7, 8 and 10 of this Agreement cannot adequately be compensated by monetary damages, the Company shall be entitled,
in addition to any other right and remedy set forth in this Agreement or available to it at law, in equity or otherwise, to seek
and obtain from any court of competent jurisdiction immediate temporary, preliminary and permanent injunctive relief restraining
such breach or threatened breach, without the posting of any bond or other security therefor, against the Employee and against
each and every other person, firm company, joint venture, and/or other entity concerned with and/or acting in concert with the
Employee. Any such requirement of bond or other security is hereby expressly waived by the Employee, and the Employee expressly
acknowledges that in the absence of such waiver, a bond or other security may be required by the court. The Employee hereby consents
to the issuance of such injunction and expressly and knowingly waives any claim or defense that any adequate remedy at law might
exist for any such breach or threatened breach. The Employee agrees that the provisions of Sections 6, 7, 8 and 10 of this Agreement
are necessary and reasonable to protect the Company in the conduct of the business of the Company.

 

15.12.Counterparts. This Agreement may be executed
in counterparts which, taken together, shall constitute the whole of the agreement between the parties.

 

 

    	8

    	 

    

IN WITNESS THEREOF, the parties have executed this Agreement
as of the day and year first above written.

 

“Company”   SIMULATIONS PLUS, INC.,

a California corporation

 

By:  /s/ Momoko Beran          

Title: Chief Financial Officer

Date: 08/23/2013

 

“Employee”   WALTER S. WOLTOSZ

 

By:  /s/ Walter S. Woltosz           

Walter S. Woltosz

Date: Date: 08/22/2013

 

Compensation Committee:

 

By:  /s/ David Z. D’Argenio        

Dr. David Z. D’Argenio

Date: 08/22/2013

 

By:  /s/ David L. Ralph                 

Dr. David L. Ralph

Date: 08/22/2013

 

By:  /s/ Wayne H. Rosenberger  

Wayne H. Rosenberger

Date: 08/22/2013

 

    	9

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