Document:

ex1022pdownsemploymentag

 NEWTEK SMALL BUSINESS FINANCE, LLC  _____________________________    EMPLOYMENT AGREEMENT WITH  PETER DOWNS  _____________________________    PREAMBLE.  This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as  of the 15th day of March 2021 (the “Effective Date”), by and between NEWTEK SMALL  BUSINESS FINANCE, LLC (the “Company”) and PETER DOWNS (the “Executive”).  WHEREAS, the Executive is currently employed by the Company as President; and  WHEREAS, the Company is a wholly owned consolidated subsidiary of Newtek Business  Services Corp. (“Parent”) and Executive serves as Chief Lending Officer of Parent; and  WHEREAS, the parties desire by this writing to set forth the employment relationship of  the Company and the Executive as of the Effective Date.  NOW, THEREFORE, it is AGREED as follows:  1. Defined Terms  When used anywhere in the Agreement, the following terms shall have the meaning  set forth herein.  (a) “Board” shall mean the Board of Managers of the Company.  (b) “Change in Control” shall mean any one of the following events:  (i) the  acquisition of ownership, holding or power to vote more than 25% of Company’s or Parent’s  voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d)  of the Securities Exchange Act of 1934), (ii) the acquisition of the ability to control the election of  a majority of the Company’s Board or Parent board of directors (“Parent Board”) by any person  or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange  Act of 1934), (iii) the acquisition of a controlling influence over the management or policies of the  Company by any person or by persons acting as a “group” (within the meaning of Section 13(d)  of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years,  individuals (the “Continuing Directors”) who at the beginning of such period constitute the Parent  Board (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof, provided  that any individual whose election or nomination for election as a member of the Existing Board  was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be  considered a Continuing Director. For purposes of defining Change in Control, the term “person”  refers to an individual or a corporation, partnership, trust, association, joint venture, pool,  syndicate, sole proprietorship, unincorporated organization or any other form of entity not  specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined in this  Section 1(b) shall not be treated as a Change in Control for purposes of this Agreement unless it  constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the  

 

  2  Treasury Regulations promulgated under section 409A of the Internal Revenue Code of 1986, as  amended (the “Code”) (the “Treasury Regulations”).  (c)  “Common Stock” shall mean shares of Parent’s common stock, par value  $0.02 per share.  (d)  “Good Reason” shall mean any of the following events, which has not been  consented to in advance by the Executive in writing during the term of the Agreement: (i) the  requirement that the Executive move his personal residence, or perform his principal executive  functions, more than fifty (50) miles from his primary office as of the Effective Date; (ii) a material  reduction in the Executive’s Annual Base Compensation as the same may be increased from time  to time; (iii) the failure by the Company to continue to provide the Executive with compensation  and benefits provided for on the Effective Date, as the same may be increased from time to time,  or with benefits substantially similar to those provided to him under any of the Executive benefit  plans in which the Executive now or hereafter becomes a participant, or the taking of any action  by the Company which would directly or indirectly reduce any of such benefits or deprive the  Executive of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of  duties and responsibilities that constitute a material diminution from those associated with his  position on the Effective Date;  or (v) a material diminution or reduction in the Executive’s  responsibilities or authority (including reporting responsibilities) in connection with his  employment with the Company.  (e) “Just Cause” shall mean the Executive’s willful misconduct, breach of  fiduciary duty involving personal profit, intentional failure to perform stated duties, conviction for  a felony, or material breach of any provision of this Agreement.  No act, or failure to act, on the  Executive’s part shall be considered “willful” unless Executive has acted, or failed to act, with an  absence of good faith and without a reasonable belief that Executive’s action or failure to act was  in the best interests of the Company.   2. Employment.  The Executive is employed as President of the Company.  The  Executive shall render such administrative and management services for the Company, its Parent  and Parent’s subsidiaries and portfolio companies as are currently rendered and as are customarily  performed by persons situated in a similar executive capacity and consistent with the duties of a  President as set forth in the Amended and Restated Operating Agreement of the Company.  The  Executive shall report to the Chief Executive Officer and the Board. The Executive shall also  promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the  Company and its Parent.  The Executive’s other duties shall be such as the Chief Executive Officer  or Board may from time to time reasonably direct, including normal duties as an officer of the  Company.  3. Annual Base Compensation.  The Company agrees to pay the Executive during the  term of this Agreement a salary at the rate of $550,000 per annum, payable in cash not less  frequently than monthly.   

 

  3   4. Cash Bonuses.  The Chief Executive Officer shall determine the Executive’s right  to receive cash bonuses. Cash bonuses shall be awarded annually based upon the Executive’s and  the Company’s annual performance pursuant to the Company’s policy.   5. Other Benefits.  (a) Participation in Retirement, Medical and Other Plans.  The Executive shall  participate in any plan that the Company maintains for the benefit of its employees if the plan  relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the  reimbursement of medical or dependent care expenses, or (iii) other group benefits, including  disability and life insurance plans.   (b) Executive Benefits; Expenses.  The Executive shall participate in any fringe  benefits which are or may become available to the Company’s senior management Executives,  including for example incentive compensation plans, club memberships, and any other benefits  which are commensurate with the responsibilities and functions to be performed by the Executive  under this Agreement.  The Executive shall be reimbursed for all reasonable out-of-pocket  business expenses which he shall incur in connection with his services under this Agreement upon  substantiation of such expenses in accordance with the policies of the Company.  6. Term.  The Company hereby employs the Executive, and the Executive hereby  accepts such employment, subject to the terms and conditions of this Agreement, for the period  commencing on the Effective Date and ending on March 15, 2022 or such earlier date as is  determined in accordance with Section 11 (the “Term”).”  7. Loyalty; Noncompetition.  (a) During the period of Executive’s employment hereunder and except for  illnesses, reasonable vacation periods, and reasonable leaves of absence, the Executive shall devote  substantially all of Executive’s full business time, attention, skill, and efforts to the faithful  performance of Executive’s duties hereunder; provided, however, from time to time, Executive  may serve on the boards of directors of, and hold any other offices or positions in, companies or  organizations, at the request of the Company or Parent, or which will not present in the opinion of  the Board any conflict of interest with the Company or Parent and any of Parent’s subsidiaries or  portfolio companies, nor unfavorably affect the performance of Executive’s duties pursuant to this  Agreement, nor violate any applicable statute or regulation.  During the Term of Executive’s  employment under this Agreement, the Executive shall not engage in any business or activity  contrary to the business affairs or interests of the Company or Parent.   (b) Nothing contained in this Paragraph 7 shall be deemed to prevent or limit  the Executive’s right to invest in the capital stock or other securities of any business dissimilar  from that of the Company or Parent, or, solely as a passive or minority investor, in any business,  provided such investment does not: (i) constitute a conflict of interest, (ii) violate laws or  regulations applicable to the Company or Parent, including, without limitation, the Investment  Company Act of 1940, or (iii) violate any rules or polices promulgated by the Board.  8. Standards.  The Executive shall perform his duties under this Agreement in  accordance with such reasonable standards as the Chief Executive Officer may establish from time  

 

  4  to time.  The Company will provide Executive with the working facilities and staff customary for  similar executives and necessary for him to perform his duties.   9. Vacation and Sick Leave.  At such reasonable times according to Company policy  the Executive shall be entitled, without loss of pay, to absent himself voluntarily from the  performance of his employment under this Agreement, all such voluntary absences to count as  vacation time; provided that:  (a) The Executive shall be entitled to an annual vacation in accordance with the  policies that the Company periodically establishes for senior management Executives of the  Company.  (b) The Executive shall not receive any additional compensation from the  Company on account of his failure to take a vacation, and the Executive shall not accumulate  unused vacation from one fiscal year to the next, except in either case to the extent authorized by  the Chief Executive Officer.  (c) In addition to the aforesaid paid vacations, the Executive shall be entitled to  absent himself voluntarily from the performance of his employment with the Company for such  additional periods of time and for such valid and legitimate reasons as the Chief Executive Officer  may in his discretion determine.  Further, the Chief Executive Officer may grant to the Executive  a leave or leaves of absence with or without pay.  (d) In addition, the Executive shall be entitled to an annual sick leave benefit as  established by the Company.  10. Indemnification.  The Company and Parent shall, to the extent permitted by the  Company’s Operating Agreement and Parent’s Bylaws, indemnify and hold harmless Executive  from any and all loss, expense, or liability that he may incur due to his services for the Company  as an officer and or a director of the Company, Parent or any Parent’s subsidiaries or portfolio  companies (including any liability Executive  may ever incur as the result of severance benefits  Executive collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall  at all times maintain adequate insurance for such purposes.  11. Termination and Termination Pay.  Subject to Section 13 hereof, the Executive’s  employment hereunder may be terminated under the following circumstances:  (a) Just Cause.  The Chief Executive Officer may, based on a good faith  determination and only after giving the Executive written notice and a reasonable opportunity to  cure, immediately terminate the Executive’s employment at any time, for Just Cause.  The  Executive shall have no right to receive compensation or other benefits for any period after  termination for Just Cause.  (b) Without Just Cause.  The Chief Executive Officer may, by written notice to  the Executive, immediately terminate Executive’s employment for a reason other than Just Cause.   In such event, the Executive shall be entitled to a total severance payment equal to one (1) times  the sum of (i) Executive’s Annual Base Compensation in effect at the time of termination, plus  (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the  

 

  5  immediately preceding fiscal year (the “Severance Payment”). The Severance Payment shall be  paid in equal installments over a twelve (12) month period following the Executive’s termination  of employment, payable in accordance with the Company’s regularly scheduled payroll (the  “Installment Payments”).  Each Installment Payment shall be treated as a separate payment for  purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii).    (c) Resignation by Executive with Good Reason.  The Executive may at any  time immediately terminate employment for Good Reason, in which case the Executive shall be  entitled to receive the Severance Payment payable in the same manner and on the same basis as  provided for under Section 11(b) herein upon a termination without Just Cause.  In addition, the  Executive will be entitled to health, life, disability and other benefits which the Executive would  have been eligible to participate in through the expiration of the Term based on the benefit levels  substantially equal to those that the Company provided for the Executive at the date of termination  of employment, subject to any restrictions as may be required under Code Section 409A   (d) Resignation by Executive without Good Reason.  The Executive may  voluntarily terminate employment with the Company during the term of this Agreement, upon at  least 60 days’ prior written notice to the Chief Executive Officer, in which case the Executive shall  receive only his compensation, vested rights, and Executive benefits up to the date of Executive’s  last day of employment.  (e) Death, or Disability.  If the Executive’s employment terminates during the  Term of this Agreement due to Executive’s death or a disability that results in Executive’s  collection of any long-term disability benefits, the Executive (or the beneficiaries of Executive’s  estate) shall be entitled to receive the compensation and benefits that the Executive would  otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation  without Good Reason.  (f)  Non-Renewal Payment.  If the Term of this Agreement is not extended for  at least one (1) additional year in circumstances in which the Executive is willing and able to  execute such extension and continue performing services (the “Non-Renewal”), then the  Executive’s employment shall be terminated by the Company effective as of the expiration of the  Term, in which event Executive shall be entitled to fifty percent (50%) times the Severance  Payment (the “Non-Renewal Payment”).  The Non-Renewal Payment shall be paid in equal  installments over the six (6) month period following the Executive’s termination of employment,  payable in accordance with the Company’s regularly scheduled payroll.  However, if the Non- Renewal occurs following a Change in Control, the Non-Renewal Payment shall be paid in a lump  sum within thirty (30) days of Executive’s termination of employment.   (g)  Acceleration of Equity Awards.  All: (i) outstanding and unvested options  to purchase Common Stock granted to Executive under any equity plan of the Parent, (ii) unvested  shares of restricted Common Stock awarded to the Executive under any equity plan of the Parent,  and (iii) other equity and equity equivalent awards then held by the Executive, shall be accelerated  in full, and thereafter all such options, shares of restricted Common Stock and other equity awards  shall be immediately vested and exercisable for such period of time as provided for by the specific  agreements governing each such award, upon Executive’s termination pursuant to Sections 11(b),  (c),  (e) or (f) hereof.  

 

  6    12. No Mitigation.  The Executive shall not be required to mitigate the amount of any  payment provided for in this Agreement by seeking other employment or otherwise, and no such  payment shall be offset or reduced by the amount of any compensation or benefits provided to the  Executive in any subsequent employment.   13. Change in Control.  Notwithstanding any provision in this Agreement to the  contrary, if Executive’s employment is terminated following a Change of Control: (i) by the  Company or its successor in interest for any reason other than Just Cause, or (ii) by the Executive  for Good Reason, the Executive shall be paid the Severance Payment in a lump sum within thirty  (30) days of Executive’s termination of employment.  14. Covenants.    (a) Definitions.  For purposes of this Agreement:   (i) Restrictive Period.  The term “Restrictive Period” shall mean the  period beginning on the Effective Date and ending two (2) years after the termination of the  Executive’s employment hereunder.   (ii) Covered Customer.  The term “Covered Customer” shall mean (A)  during the Term, any customer, merchant, independent sales agency (ISA), independent sales  organization (ISO), alliance partner, referral partner or any intermediary of the Company or Parent  or Parent’s portfolio companies and (B) after the Term, as of the end of the Term, a Covered  Customer of the Company or Parent or Parent’s portfolio companies within the prior three years.    (iii) Covered Business.  The term “Covered Business” shall mean (A)  during the term, any business in which the Company is engaged and (B) after the Term, any  business in which the Company was engaged as of the end of the Term.   (iv) Covered State.  The term “Covered State” shall mean (A) during the  Term, any state in the United States and (B) after the Term, any state (1) in which, as of the end  of the Term, the Company was engaged in business or (2) with respect to which the Company, as  of the end of the Term, had expended material expense and/or efforts in connection with preparing  to do business therein.  (b) Non-Interference.  The Executive covenants and agrees that Executive will  not at any time during the Restrictive Period for whatever reason, whether for Executive’s own  account or for the account of any other person, firm, corporation or other business organization:  (i) interfere with contractual relationships between the Company or Parent or Parent’s subsidiaries  or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for  hire, any person who is employed by the Company or Parent or Parent’s subsidiaries or portfolio  companies, without the express written consent of the Company or Parent; or (iii) other than on  behalf of the Company or Parent or Parent’s subsidiaries or portfolio companies, solicit any  Covered Customer in connection with the engagement, by any person or entity, in any Covered  Business in any Covered State.  

 

  7  (c) Confidentiality.  The Executive will not, at any time whether during or after  his termination of employment, (i) disclose to anyone, without proper authorization from the  Company or Parent, or (ii) use, for his or another’s benefit, any confidential or proprietary  information of the Company or Parent or any subsidiary or portfolio company of Parent, which  may include trade secrets, business plans or outlooks, financial data, marketing or sales programs,  customer lists, brand formulations, training and operations manuals, products or price strategies,  mergers, acquisitions, and/or Company or Parent personnel issues.  (d) Blue Pencil; Equitable Relief.  The provisions contained in this Section 14  as to the time periods, scope of activities, persons or entities affected and territories restricted shall  be deemed divisible so that if any provision contained in this Section is determined to be invalid  or unenforceable, such provision shall be deemed modified so as to be valid and enforceable to the  full extent lawfully permitted.  The Executive acknowledges that the provisions of this Section 14  are reasonable and necessary for the protection of the Company and that the Company will be  irrevocably damaged if such covenants are not specifically enforced.  Accordingly, the Executive  agrees that if he breaches or threatens to breach any of the covenants contained in this Section 14,  the Company will be entitled (i) to damages sufficient to compensate the Company for any harm  to the Company caused thereby and (ii) to specific performance and injunctive relief for the  purpose of preventing the breach or threatened breach thereof without bond or other security or a  showing that monetary damages will not provide an adequate remedy, in addition to any other  relief to which the Company may be entitled under this Agreement.  15. Reimbursement for Litigation Expenses.  In the event that any dispute arises between the Executive and the Company as to the terms  or interpretation of this Agreement, whether instituted by formal legal proceedings or otherwise,  including any action that the Executive takes to enforce the terms of this Agreement or to defend  against any action taken by the Company, the Executive shall be reimbursed for all costs and  expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions,  provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in  favor of the Executive.  Such reimbursement shall be paid within ten (10) days of Executive’s  furnishing to the Company written evidence, which may be in the form, among other things, of a  cancelled check or receipt, of any costs or expenses incurred by the Executive.      16. Successors and Assigns.  (a) This Agreement shall inure to the benefit of and be binding upon any  corporate or other successor of the Company or Parent which shall acquire, directly or indirectly,  by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of  the Company.  (b) Since the Company is contracting for the unique and personal skills of the  Executive, the Executive shall be precluded from assigning or delegating his rights or duties  hereunder without first obtaining the written consent of the Company.  17. Corporate Authority.  Company and Parent represent and warrant that the execution  and delivery of this Agreement has been duly and properly authorized by their respective Board  

 

  8  and board of directors and that when so executed and delivered by them that this Agreement shall  constitute the lawful and binding obligations of the Company and Parent.  18. Amendments.  No amendments or additions to this Agreement shall be binding  unless made in writing and signed by all of the parties, except as herein otherwise specifically  provided.  19. Applicable Law.  Except to the extent preempted by Federal law, the laws of the  State of New York shall govern this Agreement in all respects, whether as to its validity,  construction, capacity, performance or otherwise.    20. Severability.  The provisions of this Agreement shall be deemed severable and the  invalidity or unenforceability of any provision shall not affect the validity or enforceability of the  other provisions hereof.  21. Entire Agreement.  This Agreement, together with any understanding or  modifications thereof as agreed to in writing by the parties, shall constitute the entire agreement  between the parties hereto with respect to the matters addressed and shall supercede all previous  agreements with respect to such matters.  22. Tax Matters. All payments or benefits provided under this Agreement are subject  to any applicable employment or tax withholdings or deductions.  In addition, the parties hereby  agree that it is their intention that all payments or benefits provided under this Agreement be  exempt from, or if not so exempt, comply with, Code Section 409A and this Agreement shall be  interpreted accordingly.  Notwithstanding anything in this Agreement to the contrary, if any  payments or benefits made or provided under the Agreement are considered deferred  compensation subject to Code Section 409A payable on account of Employee’s separation from  service (but that do not meet an exemption under Code Section 409A, including without limitation  the short term deferral or the separation pay plan exemption), such payments or benefits shall be  paid no earlier than the date that is six (6) months following Employee’s separation from service  (or, if earlier, the date of death) to the extent required by Code Section 409A.  [signatures on following page]  

 

  9  IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first  hereinabove written.        NEWTEK SMALL BUSINESS FINANCE, LLC            By:               Barry Sloane, Chief Executive Officer              NEWTEK BUSINESS SERVICES CORP.            By:                Barry Sloane, Chief Executive Officer            EXECUTIVE              By:                 Peter DownsExhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”) is made and entered into as of March 29, 2021 (the “Effective Date”),
by and between Roman Franklin, an individual, (the “Executive”) and Simplicity Esports and Gaming Company, a Delaware
corporation (the “Company”). The Company and the Executive may be referred to herein individually as a “Party”
and collectively as the “Parties.”

 

WHEREAS,
the Company desires to retain the services of Executive as the Chief Executive Officer of the Company and the Executive desires
to provide such services to the Company; and

 

WHEREAS,
in light of the foregoing, the Company and Executive desire to memorialize their employment relationship on the terms, conditions
and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants contained herein and other good and valuable consideration,
the receipt of which the Parties hereby acknowledge, Executive and the Company agree as follows:

 

1.
Position. As of the Effective Date, Executive agrees to be employed by the Company in the position of Chief Executive Officer
of the Company. Executive shall report to the Board of Directors of the Company (including any designated committee thereof, the
“Board of Directors”) and the Chief Executive Officer of the Company. In his capacity as the Chief Executive Officer
of the Company, Executive shall undertake the duties and responsibilities customary to that position, subject in all instances
to the direction and oversight of the Board of Directors. Executive understands and agrees that the Board of Directors may prescribe
such duties, responsibilities, and powers to him as it reasonably determines appropriate, and that, in its sole discretion, the
Board of Directors may revise or otherwise amend from time to time the prescribed duties and responsibilities, provided that such
duties shall at all times be limited to those customarily undertaken by a person in such position.

 

2.
Executive’s Effort. Executive shall devote sufficient time and his best efforts, skill and attention to his position
and to the business and interests of the Company; provided, that nothing herein shall preclude Executive, (i) subject to
prior approval of the Board of Directors, from serving on the boards of directors of other for-profit companies, and (ii) from
engaging in charitable activities including serving on the boards of directors of non-profit organizations, so long as, in each
case, and in the aggregate, such service and management does not conflict with the performance of Executive’s duties hereunder.
Executive may be requested to serve as a member of the Board of Directors and on the boards of directors of the Company and Company
affiliates, in each case for no additional compensation.

 

3.
Executive’s Location. The principal place of the Executive’s employment shall be in and around Orlando, Florida.
Executive may be required to travel on Company business during the Term.

 

4.
Representations.

 

		(a)	Executive
                                         hereby represents and warrants to the Company that: (i) Executive has full power and
                                         capacity to execute and deliver, and to perform, all of Executive’s obligations
                                         under this Agreement; (ii) upon execution and delivery of this Agreement, this Agreement
                                         will be the valid and binding obligation of Executive, enforceable against Executive
                                         in accordance with its terms except as the enforceability thereof may be limited by the
                                         Enforceability Exceptions (as defined below); and (iii) Executive is not now under any
                                         obligation by contract, agreement or understanding to any person, business, or other
                                         entity, that is inconsistent, or in conflict, with this Agreement or that would prevent
                                         Executive from performing his obligations hereunder. Executive also agrees that he will
                                         immediately inform the Company of any such restrictions. For purposes hereof, “Enforceability
                                         Exceptions” means bankruptcy, insolvency, reorganization, moratorium or other similar
                                         laws affecting the enforcement of creditors’ rights generally and general principles
                                         of equity (regardless of whether enforceability is considered in a proceeding at law
                                         or in equity).

 

    	 	 	 

    	 

    

 

		(b)	The
                                         Company hereby represents and warrants to Executive that: (i) the Company has full power
                                         and capacity to execute and deliver, and to perform, all of the Company’s obligations
                                         under this Agreement; (ii) upon execution and delivery of this Agreement, this Agreement
                                         will be the valid and binding obligation of the Company, enforceable against Executive
                                         in accordance with its terms except as the enforceability thereof may be limited by the
                                         Enforceability Exceptions; and (iii) the Company is not now under any obligation by contract,
                                         agreement or understanding to any person, business, or other entity, that is inconsistent,
                                         or in conflict, with this Agreement or that would prevent the Company from performing
                                         its obligations hereunder.

 

5.
Compensation.

 

		(a)	Base
                                         Salary. The Company shall pay the Executive a monthly base salary in the amount of
                                         Twenty Thousand Eight Hundred Thirty-Three Dollars and Thirty-Three Cents ($20,833.33)
                                         (the “Base Salary”), which shall be payable on a monthly basis or otherwise
                                         in accordance with the Company’s standard policies. Notwithstanding the forgoing,
                                         the Parties acknowledge and agree that the Base Salary shall be deferred, and shall accumulate,
                                         until the Company has sufficient cash available to make such payments, as to be reasonably
                                         determined and agreed by the Board of Directors and Executive, at which time all accrued
                                         and unpaid Base Salary shall be paid.
	 	 	 
		(b)	Intentionally
                                         Left Blank
	 	 	 
		(c)	Bonus.
                                         In addition to the Base Salary provided for in Section Error! Reference source
                                         not found., the Executive shall be eligible to receive a quarterly bonus in the form
                                         of a cash bonus and/or an equity grant of shares of the Company’s common stock
                                         (the “Bonus”) up to Fifteen Thousand Dollars ($15,000) quarterly. Executive’s
                                         eligibility for any Bonus and the amount thereof shall be determined solely at the discretion
                                         of the Board of Directors. Any Bonus shall be payable no later than 60 days following
                                         the quarterly period to which such Bonus relates, subject to Executive’s employment
                                         with the Company on the last day of the quarterly period to which the Bonus relates,
                                         except as provided in Section 7.

 

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		(d)	Employee
                                         Benefits.During the Term and otherwise as set forth herein, the Executive shall
                                         be entitled to participate in all employee benefit plans, practices, and programs maintained
                                         by the Company, as in effect from time to time (collectively, “Employee Benefit
                                         Plans”), to the extent consistent with applicable law and the terms of the applicable
                                         Employee Benefit Plans. Further, the Company shall pay the entire group health premium
                                         for Executive and eligible dependents to participate in the Company’s group health
                                         plan. The Company reserves the right to amend or cancel any Employee Benefit Plans at
                                         any time in its sole discretion, subject to the terms of such Employee Benefit Plans
                                         and applicable law.
	 	 	 
		(e)	Vacation;
                                         Paid Time Off; Holidays. During the Employment Term, the Executive shall be entitled
                                         to four weeks paid vacation and paid holidays annually in accordance with the Company’s
                                         policies for executive officers as such policies may exist from time to time. Vacation
                                         will be taken at such times and dates as will not interfere with Executive’s duties
                                         and responsibilities to the Company.
	 	 	 
		(f)	Business
                                         Expenses. The Executive shall be entitled to reimbursement for all reasonable and
                                         necessary out-of-pocket business, entertainment, and travel expenses incurred by the
                                         Executive in connection with the performance of the Executive’s duties hereunder
                                         and in accordance with the Company’s expense reimbursement policies and procedures.
	 	 	 
		(g)	Indemnification.
                                         During the Term, the Executive shall be entitled to indemnification and insurance coverage
                                         for directors’ and officers’ liability (such coverage to be provided through
                                         a Company-provided D&O policy), fiduciary liability and other liabilities arising
                                         out of the Executive’s position with the Company in any capacity, in an amount
                                         not less than the highest amount available to any other senior level executive or member
                                         of the Board of Directors and to the full extent provided by or allowable under the Company’s
                                         certificate of incorporation or by-laws, and such coverage and protections, with respect
                                         to the various liabilities as to which the Executive has been customarily indemnified
                                         prior to termination of employment, shall continue for at least six years following the
                                         end of the Term. Any indemnification agreement entered into between the Company and the
                                         Executive shall continue in full force and effect in accordance with its terms following
                                         the termination of this Agreement.

 

6.
Term/Renewal. Unless earlier terminated as set forth herein, this Agreement and the status and obligations of Executive
thereunder as an employee of the Company (except as provided for below) shall be effective for a period ending two (2) year after
the Effective Date (the “Initial Term”) and, after the expiration of the Initial Term, this Agreement shall automatically
renew for successive one (1) year terms (each a “Renewal Term” and, collectively with all Renewal Terms and the Initial
Term, the “Term”) unless, either Party gives the other Party sixty (60) days’ advance written notice of its
intention not to renew this Agreement at the conclusion of the Initial Term or the then-current Renewal Term, as applicable.

 

7.
Termination of Employment. The Term and Executive’s employment hereunder may be terminated by the Company with or
without Cause, or by the Executive with or without Good Reason. In addition, in the event of the Executive’s death or total
disability as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (“Disability”) during the
Term, the Term and Executive’s employment shall terminate on the date of death or Disability.

 

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		(a)	Definition
                                         of Cause. For purposes of this Agreement, “Cause” shall mean, subject
                                         to the provisions herein:

 

		(i)	Executive’s
                                         willful failure to perform his duties (other than any such failure resulting from incapacity
                                         due to physical or mental illness);
	 	 	 
		(ii)	Executive’s
                                         willful failure to comply with any valid and legal directive of the Board of Directors;
                                         or
	 	 	 
		(iii)	Executive’s
                                         willful engagement in gross misconduct, which is, in each case, materially injurious
                                         to the Company or its affiliates; or
	 	 	 
		(iv)	Actions
                                         by Executive constituting embezzlement, misappropriation, or fraud related to the Executive’s
                                         employment with the Company; or
	 	 	 
		(v)	Executive’s
                                         conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony
                                         (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;
                                         or
	 	 	 
		(vi)	Executive’s
                                         material breach of any material obligation under this Agreement, which the Executive
                                         fails to correct within 10 days after the Executive receives written notice from the
                                         Board of Directors of such breach.

 

		(b)	Definition
                                         of Good Reason. For purposes of this Agreement, “Good Reason” shall mean
                                         the occurrence of any of the following, in each case during the Term, provided, however
                                         that failure of the Company’s shareholders to approve the Share Exchange Agreement
                                         or the issuance of additional shares required under the terms of the Share Exchange Agreement
                                         shall not constitute “Good Reason” or require the payment of severance to
                                         Executive:

 

		(i)	a
                                         material reduction in the Executive’s Base Salary;
	 	 	 
		(ii)	a
                                         material reduction in Executive’s target bonus opportunity;
	 	 	 
		(iii)	a
                                         relocation of Executive’s principal place of employment from that set forth in
                                         Section 3 by more than thirty-five (35) miles;
	 	 	 
		(iv)	a
                                         material breach by the Company of any material provision of this Agreement;
	 	 	 
		(v)	at
                                         any time following a Change of Control (as defined below), a material change in Executive’s
                                         title or responsibilities, or a material diminution by the Company of compensation and
                                         benefits (taken as a whole) provided to the Executive immediately prior to a Change of
                                         Control.

 

    	4

    	 

    

 

		(c)	Definition
                                         of a Change of Control. For purposes of this Agreement, a “Change of Control”
                                         means the occurrence of any one or more of the following events (it being agreed that,
                                         with respect to paragraphs (i) and (ii) of this definition below, a “Change of
                                         Control” shall not be deemed to have occurred if the applicable third party acquiring
                                         the Company is an “affiliate” of the Company within the meaning of Rule 405
                                         promulgated under the Securities Act of 1933, as amended):

 

		(i)	An
                                         acquisition (whether directly from the Company or otherwise) of fifty percent (50%) or
                                         more of the Company’s then outstanding shares of stock by any “Person”
                                         (as that term is used for purposes of Section 13(d) or 14(d) of the Exchange Act or more
                                         than one Person acting as a group, immediately after which such Person or group has “Beneficial
                                         Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act).
	 	 	 
		(ii)	Individuals
                                         who, as of the Effective Date constitute the entire Board of Directors (the “Incumbent
                                         Directors”) cease for any reason, including without limitation, as a result of
                                         a tender offer, proxy contest, merger or similar transaction, to constitute at least
                                         a majority of the entire Board of Directors; provided that any individual becoming a
                                         director of the Company subsequent to the Effective Date shall be considered an Incumbent
                                         Director if such person’s election or nomination for election was approved by a
                                         vote of at least fifty percent (50%) of the Incumbent Directors; but provided further,
                                         that any such individual whose initial assumption of office is in connection with an
                                         actual or threatened election contest relating to the election of members of the Board
                                         of Directors or other actual or threatened solicitation of proxies or consents by or
                                         on behalf of a Person other than the Board of Directors, including by reason of agreement
                                         intended to avoid or settle any such actual or threatened contest or solicitation, shall
                                         not be considered an Incumbent Director.
	 	 	 
		(iii)	Approval
                                         by the Board of Directors and, if required, stockholders of the Company, or execution
                                         by the Company of any definitive agreement with respect to, or the consummation of (it
                                         being understood that the mere execution of a term sheet, memorandum of understanding
                                         or other non-binding document shall not constitute a Change of Control):

 

		(A)	A
                                         merger, consolidation or reorganization involving the Company, where either or both of
                                         the events described in paragraphs (i) and (ii) above would be the result;
	 	 	 
		(B)	A
                                         liquidation or dissolution of, or appointment of a receiver, rehabilitator, conservator
                                         or similar person for, or the filing by a third party of an involuntary bankruptcy against,
                                         the Company; or
	 	 	 
		(C)	An
                                         agreement for the sale or other disposition of all or substantially all of the assets
                                         of the Company to any Person or more than one Person acting as a group (other than a
                                         transfer to a subsidiary of the Company).

 

    	5

    	 

    

 

		(d)	Requirements
                                         for Termination.

 

		(i)	Executive
                                         may not terminate the Term and Executive’s employment for Good Reason pursuant
                                         to Section 7(b)(i), Section 7(b)(ii), Section 7(b)(iii) or Section 7(b)(iv), unless (x)
                                         the Executive, within thirty (30) days following the occurrence of the such condition
                                         giving rise to Good Reason, notifies the Company in writing of his intent to terminate
                                         with Good Reason; (y) the Company fails to cure such condition within thirty (30) days
                                         after being so notified; and (z) the Executive actually terminates no later than thirty
                                         (30) days after the end of such thirty (30)-day cure period.
	 	 	 
		(ii)	Solely
                                         in the case of an event of Cause described in Section 7(a)(i), Section 7(a)(ii) or Section
                                         7(a)(vi), (each, a “Cause Capable of Cure”), the Company may not and shall
                                         not terminate the Term and Executive’s employment for Cause unless the Company
                                         has provided written notice to Executive of the existence of the circumstances providing
                                         grounds for termination for a Cause Capable of Cure, and Executive has had at least fourteen
                                         (14) calendar days from the date on which such notice is provided to cure such circumstances
                                         to the reasonable satisfaction of the Company and has thereafter not cured such circumstance
                                         within such fourteen (14) calendar day period.

 

	 	(e)	Termination
                                         for Cause, Without Good Reason or Company Non-Renewal. Upon

 

	 	(i)	termination
                                         of the Term and Executive’s employment by the Company for Cause,
	 	 	 
	 	(ii)	termination
                                         of the Term and resignation by Executive without Good Reason, or
	 	 	 
	 	(iii)	a non-renewal
    by the Company under Section 6, the Company shall pay to Executive the following amounts (the “Accrued Amounts”):

 

		(i)	any
                                         accrued but unpaid monthly Base Salary (as provided for in Section 5(a)),
	 	 	 
		(ii)	any
                                         bonus compensation awarded for the quarterly period preceding that in which termination
                                         occurs, but unpaid on the date of termination (the “Prior Quarterly Period Bonus”);
	 	 	 
		(iii)	reimbursement
                                         for unreimbursed business expenses properly incurred by the Executive, which shall be
                                         subject to and paid in accordance with the Company’s expense reimbursement policy,
                                         and provided that such expenses and required substantiation and documentation
                                         are submitted within thirty (30) days following termination;
	 	 	 
		(iv)	such
                                         employee benefits, if any, to which the Executive may be entitled under the Company’s
                                         employee benefit plans as of the Termination Date; provided that, in no event
                                         shall the Executive be entitled to any payments in the nature of severance or termination
                                         payments except as specifically provided herein; and
	 	 	 
		(v)	all
                                         amounts otherwise required to be paid or provided by law.

 

    	6

    	 

    

 

		(f)	Termination
                                         due to Death or Disability. Upon termination of this Agreement solely as a result
                                         of the death or Disability of Executive, Executive or his estate shall receive:

 

		(i)	the
                                         Accrued Amounts; and
	 	 	 
		(ii)	a
                                         one-time pro rata share (through the termination date) of any Bonus amount for the quarterly
                                         period year in which such termination occurred (the “Pro- Rated Bonus”).

 

		(g)	Termination
                                         Without Cause or With Good Reason. Upon (i) termination of the Term and Executive’s
                                         employment by the Company without or other than for Cause, or (ii) termination of the
                                         Term and resignation by Executive with Good Reason, then:

 

		(i)	the
                                         Company shall pay to Executive the Accrued Amounts and a Pro-Rated Bonus through the
                                         date of termination;
	 	 	 
		(ii)	the
                                         Company shall pay to Executive the sum of six (6) months’ salary, equal to thirty
                                         five thousand dollars ($125,000) as a severance payment;
	 	 	 
		(iii)	the
                                         Company shall pay to Executive any salary that Executive would have earned through the
                                         end of the then-applicable Initial Term or Renewal Term, as applicable, during which
                                         the Executive’s employment was terminated;
	 	 	 
		(iv)	any
                                         unvested incentive awards (whether based in equity or cash, and specifically including,
                                         but not limited to, stock options and restricted stock) then held by the Executive shall
                                         immediately be vested in full; and
	 	 	 
		(v)	Intentionally
                                         Left Blank
	 	 	 
		(vi)	Section
                                         11 shall no longer be of any force or effect for any period following such termination.

 

All
cash payments due pursuant to this Section 7(g) shall be paid within 14 days of termination. As a pre-condition or receiving the
payments and benefits described in Section 7(g)(ii) through Section 7(g)(vi), inclusive, Executive shall, within 30 days of the
Termination Date, sign and return the General Release Agreement in the form annexed hereto as Exhibit “A.

 

		(h)	Notice
                                         of Termination. Any termination of the Executive’s employment hereunder by
                                         the Company or by the Executive (other than termination on account of the Executive’s
                                         death) shall be communicated by written notice of termination (“Notice of Termination”)
                                         to the other Party hereto in accordance with this Agreement. The Notice of Termination
                                         shall specify:

 

		(i)	The
                                         termination provision of this Agreement relied upon;
	 	 	 
		(ii)	To
                                         the extent applicable, the facts and circumstances claimed to provide a basis for termination
                                         of the Executive’s employment under the provision so indicated; and
	 	 	 
		(iii)	The
                                         applicable Termination Date.

 

    	7

    	 

    

  

		(i)	Executive
                                         Duties after Receipt of Notice of Termination for Cause. Subject to the Company affording
                                         Executive a reasonable ability to cure a purported Cause Capable of Cure, after the Company
                                         gives Executive notice of termination for Cause and prior to termination of employment
                                         becoming effective, the Company may, in its sole discretion: (i) require that Executive
                                         absent himself from the office; (ii) require that Executive perform no work; (iii) require
                                         that Executive abstain from taking any action as a director of the Company or of any
                                         affiliate, provided that Executive shall continue to be paid his Base Salary during
                                         such period of time.
	 	 	 
		(j)	Termination
                                         Date. The Executive’s “Termination Date” shall be:

 

		(i)	If
                                         the Executive’s employment hereunder terminates on account of the Executive’s
                                         death, the date of the Executive’s death;
	 	 	 
		(ii)	If
                                         the Executive’s employment hereunder is terminated on account of the Executive’s
                                         Disability, the date that it is determined that the Executive has a Disability;
	 	 	 
		(iii)	If
                                         the Company terminates the Executive’s employment hereunder for Cause, the date
                                         the Notice of Termination is delivered to the Executive;
	 	 	 
		(iv)	If
                                         the Company terminates the Executive’s employment hereunder without Cause, the
                                         date specified in the Notice of Termination; and
	 	 	 
		(v)	If
                                         the Executive terminates his employment hereunder with or without Good Reason, the date
                                         specified in the Executive’s Notice of Termination.

 

		(k)	Resignation
                                         of All Other Positions. Immediately upon the effective date of any termination of
                                         Executive’s employment with the Company for any reason, Executive shall be deemed
                                         to have resigned automatically from membership on the Board of Directors or the board
                                         of directors of any affiliate of the Company and from any and all offices Executive holds
                                         at the Company or any affiliate of the Company.

 

8.
Cooperation. The Parties agree that certain matters in which the Executive will be involved during the Executive’s
employment by the Company may necessitate the Executive’s cooperation in the future. Accordingly, following the termination
of Executive’s employment for any reason, to the extent reasonably requested by the Company, the Executive shall cooperate
with the Company in connection with matters arising out of the Executive’s service to the Company; provided that,
the Company shall make reasonable efforts to minimize disruption of the Executive’s other activities. The Company shall
reimburse the Executive for reasonable expenses incurred in connection with such cooperation.

 

    	8

    	 

    

 

 9. Confidentiality.

 

		(a)	For
                                         purposes of this Agreement, “Confidential Information” is and shall be trade
                                         secrets, knowledge, data or other confidential, secret or proprietary information of
                                         the Company relating to trade secrets, discoveries, inventions, products and product
                                         development, processes, practices, methods, techniques, knowledge, know-how, information
                                         relating to governmental relations, technical or other data, designs, formulas, test
                                         data, customer and supplier lists, business plans, marketing or manufacturing plans and
                                         strategies, and product pricing strategies or other subject matter pertaining to any
                                         business of the Company or any of its clients, customers, consultants, licensees, subsidiaries
                                         or affiliates, that, in any case, is not otherwise generally available to the public
                                         and has not been disclosed by the Company to others not subject to confidentiality agreements,
                                         which Executive may produce, obtain or otherwise learn of during the course of Executive’s
                                         employment and/or association with the Company, and whether produced, obtained, or learned
                                         of prior to, as of or following the date hereof.
	 	 	 
		(b)	At
                                         all times both during the Executive’s employment with the Company and thereafter,
                                         the Executive shall keep confidential and agrees not to deliver, reproduce, disclose
                                         or in any way allow any such Confidential Information to be delivered to or used by any
                                         third parties for any purpose (including, without limitation, any purpose harmful to
                                         the interests of the Company) except: (i) while employed by the Company and solely in
                                         the business of and for the benefit of the Company; (ii) when required to do so by a
                                         court of competent jurisdiction, by any governmental agency having supervisory authority
                                         over the business of the Company, or by any administrative body or legislature body (including
                                         a committee thereof) with jurisdiction to order the Company to divulge, disclose or make
                                         accessible such information; or (iii) with the specific direction, authorization or consent
                                         of a duly authorized representative of the Company.
	 	 	 
		(c)	Upon
                                         the termination of Executive’s employment with the Company, Executive shall promptly
                                         surrender and deliver to the Company all records, materials, equipment, drawings, documents,
                                         lab notes and books and data of any nature (electronic or otherwise) describing, including
                                         or pertaining to any Confidential Information, and Executive will not take with him any
                                         description containing or pertaining to any Confidential Information which Executive
                                         may produce or obtain during the course of his services. The terms of this paragraph
                                         shall survive termination of this Agreement. Notwithstanding the foregoing, Executive
                                         may retain his personal contacts, personal compensation data and, subject to prior approval
                                         by the Company, which approval shall not be unreasonably withheld, any documents reasonably
                                         needed for tax return preparation purposes.
	 	 	 
		(d)	Notice
                                         of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade
                                         Secrets Act of 2016. Notwithstanding any other provision of this Agreement:

 

		(i)	The
                                         Executive will not be held criminally or civilly liable under any federal or state trade
                                         secret law for any disclosure of a trade secret that:

 

		(A)	is
                                         made (1) in confidence to a federal, state, or local government official, either directly
                                         or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating
                                         a suspected violation of law; or

 

    	9

    	 

    

 

		(B)	is
                                         made in a complaint or other document filed under seal in a lawsuit or other proceeding.

 

		(ii)	If
                                         the Executive files a lawsuit for retaliation by the Company for reporting a suspected
                                         violation of law, the Executive may disclose the Company’s trade secrets to the
                                         Executive’s attorney and use the trade secret information in the court proceeding
                                         if the Executive:

 

		(A)	files
                                         any document containing trade secrets under seal; and
	 	 	 
		(B)	does
                                         not disclose trade secrets except pursuant to court order.

 

		(e)	Nothing
                                         herein shall prevent Executive from making a report, or bringing a claim, to any governmental
                                         agency, including the U.S. Equal Employment Opportunity Commission, the National Labor
                                         Relations Board, the U.S. Department of Justice, or the Attorney General of the State
                                         of New York.
	 	 	 
		(f)	The
                                         Executive and the Company agree that this covenant regarding confidential information
                                         is a reasonable covenant under the circumstances and further agree that if in the opinion
                                         of any court of competent jurisdiction, such covenant is not reasonable in any respect,
                                         such court shall have the right, power and authority to excise or modify such provision
                                         or provisions of this covenant as to the court shall appear not reasonable and to enforce
                                         the remainder of the covenant as so amended.

 

10.
Work Made for Hire; Assignment. The Executive acknowledges that, by reason of being employed by the Company at the relevant
times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is “work made
for hire” as defined in 17 U.S.C. § 101 and such copyrights
are therefore owned by the Company. To the extent that the foregoing does not apply, the Executive hereby irrevocably assigns
to the Company, for no additional consideration, the Executive’s entire right, title, and interest in and to all Work Product
and Intellectual Property Rights therein, including the right to sue, counterclaim, and recover for all past, present, and future
infringement, misappropriation, or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained
in this Agreement shall be construed to reduce or limit the Company’s rights, title, or interest in any Work Product or
Intellectual Property Rights so as to be less in any respect than that the Company would have had in the absence of this Agreement.

 

11.
Non-Competition and Non-Solicitation. Executive acknowledges and recognizes the highly competitive nature of the businesses
of the Company and its subsidiaries and affiliates and accordingly agrees as follows:

 

		(a)	During
                                         the Executive’s employment with the Company and for a period of one (1) year from
                                         the date of termination of Executive’s employment, the Executive shall not, anywhere
                                         within the United States either as principal, agent, employee, consultant, partner, officer,
                                         director, shareholder, or in any other individual or representative capacity, own, manage,
                                         finance, operate, control or otherwise engage or participate in any manner or fashion
                                         in an employment, business or other activity competitive with the Company. The post-employment
                                         restriction contained in this section shall not apply in the State of California.

 

    	10

    	 

    

 

		(b)	Executive
                                         further agrees that, during the Executive’s employment with the Company and for
                                         a period of one (1) year from the date of termination of Executive’s employment,
                                         the Executive shall not, directly or indirectly, either as a principal, agent, employee,
                                         consultant, partner, officer, director, shareholder, or in any other individual or representative
                                         capacity, on the Executive’s behalf or any other persons or entity other than the
                                         Company or its affiliates, (i) solicit or induce, or attempt to solicit or induce, directly
                                         or indirectly, any customer or prospective customer of the Company with whom the Executive
                                         has had personal contact within the twelve (12) month period prior to the Executive’s
                                         termination date, or (ii) solicit or induce, or attempt to solicit or induce, directly
                                         or indirectly any person who is, or during the twelve (12) month period prior to the
                                         Executive’s termination date was, an employee or agent of, or consultant to, the
                                         Company or any of its affiliates, to terminate its, his or her relationship therewith,
                                         or (iii) hire or engage any person who is, or during the twelve (12) month period prior
                                         to the Executive’s termination date was, an employee, agent of or consultant to
                                         the Company or any of its affiliates.
	 	 	 
		(c)	Executive
                                         understands that the provisions of this Section 11 may limit Executive’s ability
                                         to earn a livelihood in a business similar to the business of the Company but Executive
                                         nevertheless agrees and hereby acknowledges that (i) such provisions do not impose a
                                         greater restraint than is necessary to protect the goodwill or other business interests
                                         of the Company, (ii) such provisions contain reasonable limitations as to time and scope
                                         of activity to be restrained, (iii) such provisions are not harmful to the general public,
                                         (iv) such provisions are not unduly burdensome to Executive, and (v) the consideration
                                         provided hereunder is sufficient to compensate Executive for the restrictions contained
                                         in this Section 11. In consideration of the foregoing and in light of Executive’s
                                         education, skills and abilities, Executive agrees that Executive shall not assert that,
                                         and it should not be considered that, any provisions of this Section 11 otherwise are
                                         void, voidable or unenforceable or should be voided or held unenforceable
	 	 	 
		(d)	If
                                         a judicial determination is made by a court of competent jurisdiction that the time or
                                         territory or any other restriction contained in this Agreement is an unenforceable restriction
                                         against the Executive, the provisions of this Agreement shall not be rendered void but
                                         shall be deemed amended to apply as to such maximum time and territory and to such maximum
                                         extent as such court may judicially determine or indicate to be enforceable. Alternatively,
                                         if any court or arbitrator of competent jurisdiction finds that any restriction contained
                                         in this Agreement is unenforceable, and such restriction cannot be amended so as to make
                                         it enforceable, such finding shall not affect the enforceability of any of the other
                                         restrictions contained herein.

 

		12.	Jury
                                         Trial Waiver / Arbitration.

 

		(a)	THE
                                         PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE EVENT ANY ACTION
                                         ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE EXECUTIVE’S EMPLOYMENT
                                         WITH THE COMPANY IS LITIGATED OR HEARD IN ANY COURT.

 

    	11

    	 

    

 

		(b)	The
                                         Parties agree that this Agreement, and all matters or disputes relating to the validity,
                                         construction, performance or enforcement hereof, and all matters relating to the to the
                                         Executive’s employment hereunder or the termination or non-renewal of such employment
                                         (whether or not based on contract, tort or upon any federal, state or local statute,
                                         including but not limited to claims asserted under the Age Discrimination in Employment
                                         Act, as amended, Title VII of the Civil Rights Act of 1964, as amended, any state Fair
                                         Employment Practices Act, and/or the Americans with Disabilities Act, as amended), shall
                                         be resolved exclusively through mediation/arbitration by JAMS/Endispute in the County
                                         of New York in accordance with JAMS’ Streamlined Arbitration Rules and Procedures.
	 	 	 
		(c)	The
                                         terms of this Agreement shall be governed and construed under the laws of the State of
                                         New York, except for the arbitration provision which shall be governed by the Federal
                                         Arbitration Act.
	 	 	 
		(d)	In
                                         the event of a breach or threatened breach of this Agreement, each Party hereby consents
                                         and agrees that the other Party shall be entitled to seek from the arbitrator, in addition
                                         to other available remedies, a temporary or permanent injunction or other equitable relief
                                         against such breach or threatened breach, without the necessity of showing any actual
                                         damages or that money damages would not afford an adequate remedy, and without the necessity
                                         of posting any bond or other security. The aforementioned equitable relief shall be in
                                         addition to, not in lieu of, legal remedies, monetary damages, or other available forms
                                         of relief.
	 	 	 
		(e)	Any
                                         action or proceeding by either of the Parties to enforce the arbitration provision of
                                         this Agreement shall be brought only in a state or federal court located in the State
                                         of New York, having jurisdiction over the County of New York. The Parties hereby irrevocably
                                         submit to the non-exclusive jurisdiction of such courts and waive the defense of inconvenient
                                         forum to the maintenance of any such action or proceeding in such venue.

 

13.
Exit Obligations. Upon (a) voluntary or involuntary termination of the Executive’s employment pursuant to Section
7 or (b) the Company’s request at any time during the Executive’s employment, the Executive shall: (i) provide or
return to the Company any and all Company property, including keys, key cards, access cards, identification cards, security devices,
employer credit cards, network access devices, computers, cell phones, smartphones, PDAs, pagers, fax machines, equipment, speakers,
webcams, manuals, reports, files, books, compilations, work product, e-mail messages, recordings, tapes, disks, thumb drives or
other removable information storage devices, hard drives, negatives and data and all Company documents and materials belonging
to the Company and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information
or Work Product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company
or any of its business associates or created by the Executive in connection with his employment by the Company; and (ii) delete
or destroy all copies of any such documents and materials not returned to the Company that remain in the Executive’s possession
or control, including those stored on any non-Company devices, networks, storage locations, and media in the Executive’s
possession or control.

 

14.
Publicity. During the Term, the Executive hereby irrevocably consents to any and all uses and displays, by the Company
and its agents, representatives and licensees, of the Executive’s name, voice, likeness, image, appearance, and biographical
information.

 

    	12

    	 

    

 

15.
Entire Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations
between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter. The Parties warrant that,
in agreeing to the terms of this Agreement, they have not relied upon any oral statements or upon any written statements not contained
in this Agreement. The Parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence
in legal proceedings alleging breach of the Agreement.

 

16.
Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification
is agreed to in writing and signed by the Executive and the Company. No waiver by either of the Parties of any breach by the other
Party hereto of any condition or provision of this Agreement to be performed by the other Party hereto shall be deemed a waiver
of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay
by either of the Parties in exercising any right, power, or privilege hereunder operate as a waiver thereof to preclude any other
or further exercise thereof or the exercise of any other such right, power, or privilege.

 

17.
Severability. Should any provision of this Agreement be held by a court or arbitrator of competent jurisdiction to be enforceable
only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not
affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the Parties with
any such modification to become a part hereof and treated as though originally set forth in this Agreement.

 

		(a)	The
                                         Parties further agree that any such court is expressly authorized to modify any such
                                         unenforceable provision of this Agreement in lieu of severing such unenforceable provision
                                         from this Agreement in its entirety, whether by rewriting the offending provision, deleting
                                         any or all of the offending provision, adding additional language to this Agreement,
                                         or by making such other modifications as it deems warranted to carry out the intent and
                                         agreement of the Parties as embodied herein to the maximum extent permitted by law.
	 	 	 
		(b)	The
                                         Parties expressly agree that this Agreement as so modified by the court shall be binding
                                         upon and enforceable against each of them. In any event, should one or more of the provisions
                                         of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such
                                         invalidity, illegality, or unenforceability shall not affect any other provisions hereof,
                                         and if such provision or provisions are not modified as provided above, this Agreement
                                         shall be construed as if such invalid, illegal, or unenforceable provisions had not been
                                         set forth herein.

 

18.
Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and
no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

    	13

    	 

    

 

19.
Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all
of which taken together shall constitute one and the same instrument. Facsimile and .pdf signatures of this Agreement shall be
considered originals for purposes of this Agreement.

 

20.
Tolling. Should the Executive violate any of the terms of the restrictive covenant obligations articulated herein, the
obligation at issue will run from the first date on which the Executive ceases to be in violation of such obligation.

 

21.
Section 409A. The Parties intend for the payments and benefits under this Agreement to be exempt from Section 409A of the
Internal Revenue Code of 1986 as amended (“Section 409A”) or, if not so exempt, to be paid or provided in a manner
which complies with the requirements of such section, and intend that this Agreement shall be construed and administered in accordance
with such intention. If any payments or benefits due to the Executive under this Agreement would cause the application of an accelerated
or additional tax under Section 409A, such payments or benefits shall be restructured in a manner which does not cause such an
accelerated or additional tax. For purposes of the limitations on nonqualified deferred compensation under Section 409A, each
payment of compensation under this Agreement be treated as a separate payment of compensation. Without limiting the foregoing
and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or
tax penalties under Section 409A, amounts that would be otherwise payable and benefits that would be otherwise provided during
the six month period immediately following the Executive’s separation from service shall instead be paid on the first business
day after the date that is six months following Executive’s separation from service.

 

22.
Successors and Assigns. This Agreement may not be assigned by either Party without the prior written consent of the other Party,
to be given or withheld in the sole discretion of the other Party. This Agreement shall inure to the benefit of the Parties and
their permitted successors and assigns.

 

23.
Notice. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered
personally or sent by registered or certified mail, return receipt requested, or by overnight carrier to the Parties at the addresses
set forth below (or such other addresses as specified by the Parties by like notice):

 

If
to the Company:

 

Simplicity
Esports and Gaming Company

Attention:
Board of Directors

7000
W Palmetto Park Rd, Suite 505

Boca
Raton, FL 33433

Attention:
Board of Directors

 

with
a copy to (which will not constitute notice) to:

 

Anthony
L.G., PLLC

Attn:
Laura Anthony

625
N. Flagler Drive, Suite 600

West
Palm Beach, FL 33401

 

If
to the Executive, to the address for Executive as set forth in the Company’s records.

 

    	14

    	 

    

 

24.
Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal, state, and local
taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

25.
Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the Parties
hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the Parties under
this Agreement or as otherwise specifically set forth herein.

 

26.
ACKNOWLEDGMENT OF FULL UNDERSTANDING. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY
ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT
WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

 

[Signature
page follows]

 

    	15

    	 

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

 

	 	Simplicity
    Esports and Gaming Company 
	 	 
	 	By:	/s/
    Jed Kaplan
	 	Name:
    	Jed
    Kaplan
	 	Title:	Outgoing
    Chief Executive Officer
	 	 	 
	 	Roman Franklin
	 	 	 
	 	By:	/s/
    Roman Franklin
	 	Name:
    	Roman
    Franklin

 

    	16

    	 

    

 

EXHIBIT
A

 

GENERAL
RELEASE AND COVENANT NOT TO SUE

 

TO
ALL WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW THAT:

 

Roman
Franklin (the “Executive”), on Executive’s own behalf and on behalf of Executive’s descendants, dependents,
heirs, executors and administrators and permitted assigns, past and present, in consideration for the amounts payable and benefits
to be provided to Executive under the employment agreement (the “Agreement”) made and entered into as of March 29,
2021 (the “Effective Date”), by and between Executive, and Simplicity Esports and Gaming Company (the “Company”)
(each individually, “Party,” collectively, the “Parties”), does hereby covenant not to sue or pursue any
litigation or arbitration against, and waives, releases and discharges the Company, its parents, subsidiaries, affiliates, divisions,
assigns, predecessors, insurers, successors, and the past and present employees, officers, directors, insurers, attorneys, representatives
and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and their
administrators and fiduciaries (collectively, the “Releasees”), from any and all claims, demands, rights, judgments,
defenses, actions, charges or causes of action whatsoever, of any and every kind and description, whether known or unknown, accrued
or not accrued, that Executive ever had, now has or shall or may have or assert as of the date of this General Release and Covenant
Not to Sue against the Releasees relating to his employment with the Company or service as a member of the Board of Directors
of the Company or the termination thereof or his service as an officer or member of the Board of Directors of any subsidiary or
affiliate of the Company or the termination of such service, including, without limiting the generality of the foregoing, any
claims, demands, rights, judgments, defenses, actions, charges or causes of action related to employment or termination of employment
or that arise out of or relate in any way to the Age Discrimination in Employment Act of 1967 (the “ADEA,” a law that
prohibits discrimination on the basis of age), the Older Workers Benefit Protection Act, the National Labor Relations Act, the
Fair Labor Standards Act, the Civil Rights Act of 1964 and 1991, the Americans With Disabilities Act of 1990, the Rehabilitation
Act of 1973, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Employee Retirement Income Security
Act of 1974, the Equal Pay Act of 1963, the Consolidated Omnibus Budget Reconciliation Act of 1985, the Genetic Information Nondiscrimination
Act, the Family and Medical Leave Act, the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection
Act, the New York State Human Rights Law, the New York City Human Rights Law, the New York State Civil Rights Law, the New York
Equal Pay Law, the New York Whistleblower Law, the New York Workers’ Compensation Law, the New York City Earned Safe and
Sick Time Act, all as amended, and other Federal, state and local laws relating to discrimination on the basis of age, sex or
other protected class, the New York occupational safety and health laws, the New York wage hour and wage- payment laws, and all
claims under Federal, state or local laws for quantum meruit, unjust enrichment, breach of oral promise, wrongful discharge, tortious
interference, injurious falsehood, defamation, negligent or intentional infliction of emotional distress, invasion of privacy,
and any other common law contract and tort claims; any claims for unpaid or lost benefits or salary, bonus, vacation pay, severance
pay, or other compensation; any claims for attorneys’ fees, costs, disbursements, or other expenses; and any claims for
damages or personal injury; provided, however, that nothing herein shall release the Company from any of its obligations
to Executive under the Employment Agreement to pay the amounts and provide the benefits upon which this General Release and Covenant
Not to Sue is conditioned, or any rights Executive may have to indemnification under any charter or by-laws (or similar documents)
of any member of the Releasees or any insurance coverage under any directors and officers insurance or similar policies.

 

    	17

    	 

    

 

Executive
further agrees that this General Release and Covenant Not to Sue may be pleaded by the Company as a full defense to any action,
suit or other proceeding covered by the terms hereof that is or may be initiated, prosecuted or maintained by Executive or Executive’s
heirs or assigns. Executive understands and confirms that Executive is executing this General Release and Covenant Not to Sue
voluntarily and knowingly, but that this General Release and Covenant Not to Sue does not affect Executive’s right to claim
otherwise under the ADEA.

 

In
furtherance of the agreements set forth above, Executive hereby expressly waives and relinquishes any and all rights under any
applicable statute, doctrine or principle of law restricting the right of any person to release claims that such person does not
know or suspect to exist at the time of executing a release, which claims, if known, may have materially affected such person’s
decision to give such a release. In connection with such waiver and relinquishment, Executive acknowledges that Executive is aware
that Executive may hereafter discover claims presently unknown or unsuspected, or facts in addition to or different from those
that Executive now knows or believes to be true, with respect to the matters released herein. Nevertheless, it is the intention
of Executive to fully, finally and forever release all such matters, and all claims relating thereto, that now exist, may exist
or theretofore have existed, as specifically provided herein. The Parties hereto acknowledge and agree that this waiver shall
be an essential and material term of the release contained above. Nothing in this paragraph is intended to expand the scope of
the release as specified herein.

 

Executive
agrees that at any time following the date hereof he will not make and shall use all reasonable endeavors to prevent the making
of, any disparaging or derogatory statements whether or not the statements are true, whether in writing or otherwise, concerning
the Company or its past or current or future directors or officers or employees or consultants, and the Company undertakes that
at any time following the date hereof its senior executives will not make and shall use all reasonable endeavors to prevent the
making of any disparaging or derogatory statements whether or not the statement is true, whether in writing or otherwise concerning
the Executive, excluding in all events any statements required to be made by law, regulation or necessary business practice, or
under the public disclosure requirements of any jurisdiction.

 

No
provision of this General Release and Covenant Not to Sue should be read as preventing Executive from making a report to, filing
a charge or complaint with, or participating in any investigation or proceeding conducted by, any governmental agency, including
the Equal Employment Opportunity Commission, the National Labor Relations Board, the U.S. Department of Justice, or the Attorney
General of the State of New York, or a state or local fair employment practices agency. While Executive may participate in such
investigation or proceeding, Executive acknowledges and agrees that Executive waives Executive’s right to recover monetary
damages, of any kind, in such investigation or proceeding arising from, or in any way relating to, Executive’s employment
with, or separation from, the Company that may have arisen prior to Executive’s signing of this General Release and Covenant
Not to Sue. Executive acknowledges that this Release prohibits Executive from pursuing any claims against Employer seeking monetary
relief for Executive and/or as a representative on behalf of others.

 

This
General Release and Covenant Not to Sue shall be governed by and construed in accordance with the laws of the State of New York,
applicable to agreements made and to be performed entirely within such State without regard to principles of conflicts of laws.

 

    	18

    	 

    

 

To
the extent that Executive is forty (40) years of age or older, this paragraph shall apply. Executive acknowledges that Executive
has been offered a period of time of at least twenty- one (21) days to consider whether to sign this General Release and Covenant
Not to Sue, and the Company agrees that Executive may cancel or revoke this General Release and Covenant Not to Sue at any time
during the seven (7) days following the date on which this General Release and Covenant Not to Sue has been signed by the Parties
to this General Release and Covenant Not to Sue. In order to cancel or revoke this General Release and Covenant Not to Sue, Executive
must deliver to the Company written notice stating that Executive is canceling or revoking this General Release and Covenant Not
to Sue. If this General Release and Covenant Not to Sue is timely cancelled or revoked, none of the provisions of this General
Release and Covenant Not to Sue shall be effective or enforceable and the Company shall not be obligated to make the payments
to Executive or to provide Executive with the other benefits described in the Agreement, and all contracts and provisions modified,
relinquished or rescinded hereunder shall be reinstated to the extent in effect immediately prior hereto.

 

Executive
acknowledges and agrees that Executive has entered into this General Release and Covenant Not to Sue knowingly and willingly and
has had ample opportunity to consider the terms and provisions of this General Release and Covenant Not to Sue. Executive is hereby
advised to consult legal counsel prior to executive this General Release and Covenant Not to Sue.

 

IN
WITNESS WHEREOF, the undersigned has caused this General Release and Covenant Not
to Sue to be executed on this 25 day of March, 20 21.

 

	 	By:	/s/
    Roman Franklin
	 	Name:
    	Roman
    Franklin

 

    	19

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