Document:

Exhibit 10.4

 

SEPARATION AGREEMENT AND MUTUAL
GENERAL RELEASE

 

This Separation Agreement and Mutual
General Release (“Agreement”) is made and entered into by and between Herbert M. Reichlin (the “Executive”)
and Quest Patent Research Corporation, a Delaware corporation (the “Company”).

 

WHEREAS, Executive had been employed
by the Company since on or about December 1, 1997, and is a party to an Employment Agreement with the Company dated March 1, 2008
(the “Employment Agreement”) and Executive’s employment with the Company was terminated on June 20, 2014
(the “Termination Date”);

 

WHEREAS, under the terms of the Employment
Agreement the Executive was granted five (5) million warrants to purchase the common stock of the Company at an exercise price
of $0.004, the warrants vested upon execution of the Employment Agreement and expire on March 1, 2018 (the “2008 Warrants”);

 

WHEREAS, the Executive claims principal
and accrued interest of approximately $41,990 and $43,678 respectively on various loans Executive made to the Company during the
period from approximately February 2002 through June 2003 (the “Reichlin Loan”);

 

WHEREAS, Executive currently serves on
the Board of Directors of the Company;

 

WHEREAS, on August 4, 2014, the Company
filed a complaint in the Court of Chancery for the State of Delaware for a declaratory judgment seeking to have the Court declare
the Employment Agreement void ab initio (the “Delaware Action”); and

 

WHEREAS, the parties desire to settle
all claims and issues that have, or could have been raised, in relation to the Delaware Action, the Reichlin Loan, the Executive’s
employment with, and/or service as a member of the Board of Directors (the “Board”) of the Company and arising
out of or in any way related to the acts, transactions or occurrences between Executive and Company to date, including, but not
limited to, the Delaware Action, the Reichlin Loan, and the Executive’s employment with, and/or service as a member of the
Board of Directors of the Company or the termination of that employment, on the terms set forth herein.

 

NOW, THEREFORE, for and in consideration
of the mutual promises and the mutual covenants and agreements herein contained, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and Executive, intending to be legally bound, hereby agree
as follows:

 

		1.	Definitions. Terms defined in the preamble have their assigned meanings, and the following terms have the meanings
assigned to them.

 

		1.1.	“Claims” means any and all legally waivable claims, wages, demands, rights, liens, agreements, contracts,
covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders,
liabilities, complaints, controversies and promises of any kind or nature whatsoever, in law or equity, known or unknown, suspected
or unsuspected, and whether or not concealed or hidden.

 

    	 

    	 

    

 

		1.2.	“Company Affiliates” means the Company’s direct and indirect subsidiaries, affiliates, companies,
divisions, and units.

 

		1.3.	“Company Information” means all Company documentation and data including, without limitation all financial
information, accounting records, corporate records, data, materials, papers, books, files, documents, records, reports, memoranda,
customer information and lists, marketing information, data base information and lists, mailing lists, shareholder lists, and notes,
including but not limited to any property describing or containing any Confidential Information; stamps, seals; and all other property
which Executive received, prepared, helped prepare or had prepared by a third party on behalf of Company or at Executive’s
direction in connection with and in the course of Executive’s employment with the Company or otherwise in Executive’s
possession or control.

 

		1.4.	“Confidential Information” means information related to the business of the Company that is not publicly
available including attorney client communications, certain financial information concerning the business of the Company, and proprietary
business materials.

 

		1.5.	“Net Revenues of the Company” means, with respect to any calendar year, gross revenues from all Patent
Enforcement Proceedings less the cost of all (i) associated attorneys’ fees; (ii) disbursements, distributions or payments
to investors under funding agreements; and (iii) distributions to partners with a contractual right to share in the proceeds, such
as for example: Allied Standard Limited, The Betting Service Limited, Neil Riches, and Sol Li. To the extent the Company has other
revenues from the sale of other products or services not related to or derived from patents, Net Revenues of the Company is hereby
further defined to include gross revenues from the sale of any such products or services less the cost of those goods or services
sold.

 

		1.6.	“Patent Enforcement Proceedings” means any and all activities related in any way to patents, including,
but not limited to, (i) patent licensing; (ii) judgments, settlements and/or agreements related to patents; and (iii) patent sales.
This definition of Patent Enforcement Proceedings is intended by the parties to have the broadest possible application.

 

		1.7.	“Qualifying Year” means any calendar year during which Net Revenues of the Company exceed one-million five-hundred
thousand dollars (US$1,500,000.00).

 

		1.8.	“Released Parties” means the Company, the Company Affiliates, and associated organizations, past
and present, and each of them, as well as its and their trustees, directors, officers, shareholders, agents, attorneys, employees,
contractors, insurers, representatives, assigns, and successors, past and present, and each of them.

 

		1.9.	“Separation Date” means the effective date of this Agreement as evidenced by signature of the parties.

 

		1.10.	“Separation Package” has the meaning assigned in Section 4.

 

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		2.	Termination of Employment Agreement; Other Agreements and Plans. Executive and the Company mutually acknowledge
and agree that the Employment Agreement is hereby terminated, and that the Employment Agreement, along with any other agreement
between the Executive and the Company, are of no further force and effect and are superseded as of the Separation Date. Notwithstanding
the foregoing, the Executive shall retain the 2008 Warrants (as defined above) as set forth in Section 4.1 below. All terms and
conditions relating to Executive's separation from the Company and the Company's entire obligations with respect thereto shall
be as set forth in this Agreement. In addition, and for the avoidance of doubt, this Agreement supersedes any and all agreements
set forth in the Employment Agreement and any other agreement between the Company and Executive with respect to compensation and
termination of benefits and the Company's obligations with respect thereto, including, but not limited to, annual base salary,
cash bonuses, warrants to purchase the stock of the Company, loan repayment obligations, and any other fringe benefits and perquisite
programs.

 

		3.	Termination and Separation. The Executive’s employment with the Company and the Company Affiliates terminated
effective as of the Termination Date. As of the Separation Date, the Executive shall be deemed to have resigned from any and all
positions with the Company and the Company Affiliates, including any directorships on the Board of the Company or Company Affiliates.
From and after the Separation Date, Executive will not be, and will not hold himself out as, an employee, officer or director of
the Company and will not say or do anything purporting to bind the Company. Executive agrees that, given his separation from the
Company, Executive will no longer serve in any and all officer, committee and/or director positions, if any, that he held with
Company, effective as of the Separation Date. The Executive understands and agrees that from and after the Separation Date, he
is no longer authorized to incur any expenses, obligations or liabilities on behalf of the Company or the Company Affiliates.

 

		4.	Separation Package. Subject to the provisions detailed in this Section 4, Company agrees to provide Executive
with the following Separation Package set forth herein. Executive acknowledges and agrees that this Separation Package is the Executive’s
exclusive compensation and remedy with respect to his separation from the Company and that this Separation Package constitutes
adequate legal consideration for the promises and representations made by him in this Agreement.

 

		4.1.	Equity Consideration.  The Executive shall retain the 2008 Warrants and Company shall provide to Executive an
executed warrant grant in the form attached hereto as Exhibit A, dated as of the execution of this Agreement.

 

		4.2.	Cash Consideration.

 

		4.2.1.	Payment. The Company shall pay the Executive the total sum of seven-hundred thousand dollars (US$700,000.00)
(the “Cash Consideration”) as follows:

 

Beginning with calendar year 2015, and continuing
until the Cash Consideration is paid in full, an amount equal to three and one-quarter percent (3.25%) of Net Revenues of the Company
in any Qualifying Year.

 

			For the avoidance of doubt, in the event that the Company's Net Revenues in a specific calendar year total $1,500,000 or less,
Executive shall be entitled to be paid the sum of $0.00. If Net Revenues in a specific calendar year total $1,600,000, Executive
shall be entitled to be paid the sum of $52,000 ($1,600,000 x 3.25%) for that specific calendar year.

 

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		4.2.2.	Timing of Payment. Payment, if any, under this Section 4.2 shall be made no later than April15th in the year
following a Qualifying Year but shall not exceed three-hundred thousand dollars (US$300,000.00) in any year payment is made.

 

		5.	No Other Consideration. Executive agrees that Executive will not seek any payment, benefit, compensation or consideration
of any kind from Company arising from Executive’s employment with the Company through the Separation Date, or any purported
loan to or note obligation of the Company other than as set forth in Section 4. Except as specifically provided for in Section
4, the Executive shall not be entitled to receive any compensation or benefits of employment from the Company or any Company Affiliate
following the Separation Date.

 

		6.	Taxes. The Company may withhold from all payments due to Executive (or his beneficiary or estate) hereunder all
taxes which, by applicable federal, state, local or other law, the Company is required to withhold therefrom. The first forty one
thousand nine hundred ninety dollars (US$41,990) in payments of Cash Consideration provided for in Section 4.2 will be considered
a return of principal in relation to the Reichlin Loan and the remaining payments will be reported on an IRS Form 1099 and will
not be subject to withholdings or deductions. Executive understands and agrees that the Company is providing him with no representations
regarding tax obligations or consequences that may arise from this Agreement and the issuance of the consideration provided for
herein, Executive agrees to be solely responsible for the payment of all applicable income, transfer, sales, use and other taxes
under federal, state, local or other law, and any other charges of any type or kind which are or may become due and owing by Executive
as a result of the payments or transfers or use of property from the Company to the Executive hereunder, without seeking any further
payment from the Company

 

		7.	Accounting. For every calendar year beginning with 2014, the Company shall provide the Executive with
a detailed written accounting regarding the Net Revenues of the Company for such year. This accounting shall contain information
sufficient to calculate the Net Revenues of the Company and shall provide detail about the specific categories set forth in the
definition of Net Revenues of the Company as set forth in Section 1.5 above. This Accounting shall be provided by the Company to
the Executive within ninety (90) days of the conclusion of the calendar year at issue. The Executive may request additional information
about the calculation of Net Revenues of the Company and the Company shall provide such information on a timely basis. In the event
that the gross revenues of the Company do not exceed $1,500,000 in a specific calendar year, the Company shall have no obligation
to account to Executive during that calendar year provided that the Company has filed its 10K for that calendar year.

 

		8.	Release.

 

		8.1.	Executive does hereby unconditionally, irrevocably and absolutely release, acquit, forever discharge, and agree to hold the
Released Parties, and Company does hereby unconditionally, irrevocably and absolutely release, acquit, forever discharge, and agree
to hold the Executive, harmless from all Claims related in any way to the transactions or occurrences between them to date and
all actions taken by Executive on behalf or relating to the Company, in either case to the fullest extent permitted by law, including,
but not limited to, Executive’s employment with the Company, the termination of Executive’s employment with the Company,
Executive’s service on the Board, the Reichlin Loan, and all other Claims arising directly or indirectly out of or in any
way connected with the Executive’s employment with the Company and service on the Board. This release is intended to have
the broadest possible application and includes, but is not limited to, any tort, contract, common law, constitutional or other
statutory claims, all claims for reprisal or retaliation under federal or state law, and all claims for attorney’s fees,
costs and expenses.

 

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		8.1.1.	For the avoidance of doubt, with respect to the Reichlin Loan, to the extent any valid loan obligation to Executive exists,
Executive does hereby unconditionally, irrevocably and absolutely release, acquit, forever discharge, and forgive all principal
and accrued interest owed, or claimed to be owed, to Executive by the Released Parties.

 

		8.1.2.	For the avoidance of doubt, with respect to any claim by Executive to accrued compensation under any agreement, or purported
agreement, at any time between Executive and the Company, Executive does hereby unconditionally, irrevocably and absolutely release,
acquit, forever discharge all such accrued compensation owed, or claimed to be owed, to Executive by the Released Parties.

 

		8.2.	The parties acknowledge that they may discover facts or law different from, or in addition to, the facts or law that they know
or believe to be true with respect to the Claims released in this Agreement and agree, nonetheless, that this Agreement and the
releases contained in it shall be and remain effective in all respects notwithstanding such different or additional facts or the
discovery of them.

 

		8.3.	The parties declare and represent that they intend this Agreement to be complete and not be subject to any claim of mistake,
and that the releases herein express final, full and complete releases, and regardless of the adequacy or inadequacy of the consideration,
the parties intend the releases herein to be final and complete. The parties execute these releases with the full knowledge that
these releases cover all possible claims between them to date, to the fullest extent permitted by law, except as otherwise provided
in this Agreement.

 

		8.4.	The parties expressly waive their right to recovery of any type, including damages or reinstatement, in any administrative
or court action, whether state or federal, and whether brought by either party, or on either party's behalf, related in any way
to the matters released herein.

 

		8.5.	The general release and other provisions contained in this Section 8 shall become effective immediately upon execution of this
Agreement by the Parties.

 

		8.6.	Notwithstanding paragraphs 8.1 – 8.5 above, the parties do not release and discharge (a) any claim for breach of this
Agreement; and any claim that cannot be released by law.

 

		9.	Representations Concerning Legal Actions. Executive represents that, as of the date of this Agreement, he has
not filed any lawsuits, charges, complaints, petitions, claims or other accusatory pleadings against Company or any of the other
Released Parties in any court or with any governmental agency. Executive further agrees that, to the fullest extent permitted by
law, he will not prosecute, nor allow to be prosecuted on his behalf, in any administrative agency, whether state or federal, or
in any court, whether state or federal, any claim or demand of any type related to the matters released above, it being the intention
of the parties that with the execution of this release, the Released Parties will be absolutely, unconditionally and forever discharged
of and from all obligations to or on behalf of Executive related in any way to the matters discharged herein.

 

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		10.	Dismissal of Delaware Action. The Company covenants that within five (5) days of the effective date of this Agreement,
the Executive, or counsel for the Executive, and counsel for the Company shall execute and file a stipulation of dismissal, with
prejudice, of the Delaware Action.

 

		11.	Cooperation by Executive. The Executive agrees to fully cooperate with the Company in accomplishing the separation
and agrees to immediately provide the Corporation—including its auditor, counsel, and/or agent—with any and all books,
records, paperwork, documentation, memoranda, etc. requested by the Company in the Executive’s possession, custody or control.

 

		12.	Cooperation by Company. With respect to the 2008 Warrants, in the event the Executive exercises some or all of
such warrants, the Company shall take all reasonable and necessary steps in order to ensure that the shares of stock can be issued
and shall do so at its own cost and expense.

 

		13.	Return of Company Information. The Executive represents, warrants and covenants that the Executive has returned
to the Company (or will return to the Company within five (5) business days of the execution of this Agreement) any and all Company
Information in the Executive’s possession or control. The Company agrees to pay the shipping costs in connection with the
Executive’s return of such documents.

 

		13.1.	Third Party Possession. To the extent Executive is unable to provide certain Company Information, the Executive
shall at the time of execution of this Agreement provide an itemized list, attached as Schedule 1, of all such Company Information,
the name and contact information for the party in possession of such information, and the reason Executive is unable to regain
possession from the third party.

 

		14.	Confidentiality. Executive acknowledges that, throughout and as an incident to his employment with the Company,
the Executive has become acquainted with and received Confidential Information. Accordingly, Executive will not, at any time, reveal,
divulge, or make known to any person, firm or corporation any Confidential Information made known to the Executive or of which
the Executive has become aware, regardless of whether developed, prepared, devised, or otherwise created in whole or in part by
the efforts of the Executive. The Executive further agrees that he will retain all Confidential Information in trust for the sole
benefit of the Company, and will not divulge or deliver any Confidential Information to any unauthorized person except as required
by the order of any court or similar tribunal or any other governmental body or agency of appropriate jurisdiction. The Executive
acknowledges that the Confidential Information is of incalculable value to the Company and is the exclusive property of the Company,
and that the Company would suffer irreparable damage if any of the Confidential Information is improperly disclosed or used, and
that, therefore, the Company shall be entitled to an injunction, without the posting of any bond or other security, prohibiting
Executive from any such disclosure, attempted disclosure, violation or threatened violation. Executive agrees to notify the Company,
in writing, at least ten (10) days prior to the response deadline or appearance date (whichever is earlier) for any such court
order, subpoena, or notice of deposition issued by the court or investigating agency which seeks disclosure of the information
referenced in this section and agrees to cooperate with the Company in obtaining a protective order or such similar protection
as the Company may deem appropriate to preserve the confidential nature of such information. The foregoing obligations to maintain
the Confidential Information shall not apply to any Confidential Information that is, or without any action by the Executive becomes,
generally available to the public.

 

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		14.1.	Regulatory Filings. The Company shall not be prohibited from filing this Agreement and related agreements with
the Securities and Exchange Commission and/or other governmental agencies to the extent required by applicable laws or regulations.

 

		15.	No Continuing Relationship. The Executive and the Company acknowledge that any employment, contractual or other
relationship between the Executive and the Company terminated as of the Separation Date and that they have no further employment,
contractual or other relationship except as may arise out of this Agreement and the Executive’s exercise of the 2008 Warrants.
The Executive waives any right or claim to reinstatement as an employee of the Company, and will not seek reelection to the Board
of the Company.

 

		15.1.	Directorship. Notwithstanding the foregoing, Executive may seek reelection to the Board of the Company after
the thirty-six (36) month anniversary of the effective date of this Agreement.

 

		16.	No Admission.

 

		16.1.	Executive acknowledges and agrees that this Agreement is not intended by Company to be construed, and will not in any way be
construed, in any legal, administrative or other similar proceeding, as an admission by the Company that it has engaged in, or
is now engaging in, wrongful conduct with respect to Executive or any other person, or that Executive has any claims whatsoever
against Company, and Company specifically disclaims any liability to or wrongful acts against Executive or any other person, on
the part of itself, its employees or its agents.

 

		16.2.	Company acknowledges and agrees that this Agreement is not intended by Executive to be construed, and will not in any way be
construed, in any legal, administrative or other similar proceeding, as an admission by the Executive that he has engaged in, or
is now engaging in, wrongful conduct with respect to Company or any other person, or that Company has any claims whatsoever against
Executive, and Executive specifically disclaims any liability to or wrongful acts against Company or any other person, on the part
of himself or his agents.

 

		17.	Obligations Regarding Section 16 Reporting. The Executive understands and agrees that the Company will not undertake
to file any Forms 4 or 5 or other reports with the Securities and Exchange Commission on his behalf. The Executive further understands
and agrees that all responsibility for Section 16 compliance under the Securities Exchange Act of 1934 is his own and that the
Company will not have any responsibility or liability with respect to any failure to file (or delinquent filing of) a Form 4 or
5, any violation of Section 16(a) of the Securities Exchange Act of 1934 or any short swing profits under Section 16(b) of that
Act.

 

		18.	Unemployment. The Executive expressly acknowledges and agrees he has no claim to, and will not make any claim
for, unemployment benefits, from any federal, state, local government agency or private entity, as a result of his prior employment
with the Company, his subsequent termination from the Company, and/or this Agreement.

 

		19.	No Representation. The Executive agrees and acknowledges that in executing this Agreement he does not rely and
has not relied on any representation or statement by any of the Released Parties or by any of the Released Parties’ agents,
representatives or attorneys with regard to the subject matter, basis or effect of this Agreement.

 

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		20.	Consultation with Legal Counsel. Executive expressly acknowledges that, before signing this Agreement:

 

		20.1.	Executive has been given adequate time to decide whether to sign this Agreement, including, without limitation, the waiver
and release set forth in Section 8, and Executive does so only after full reflection and analysis;

 

		20.2.	Executive was advised of his right to consult with legal counsel and/or other advisors selected by Executive regarding the
terms and conditions of this Agreement, and that Executive has obtained and considered such legal counsel as he deems necessary;

 

		20.3.	Executive knows and understands the contents of this Agreement;

 

		20.4.	Executive is fully aware of the legal and binding effect of this Agreement; and

 

		20.5.	Executive enters into this Agreement of his own free will, and without any inducement not described in this Agreement, and
not under duress or coercion of any nature, with the full intent of releasing any and all Claims as set forth in this Agreement.

 

		21.	Remedies. The Company and/or the Executive shall be entitled to injunctive or other equitable relief to enforce
the covenants of this Agreement, such relief to be without the necessity of posting a bond, cash or otherwise, without limiting
other possible remedies of the Company and/or the Executive.

 

		22.	No Assignment: The Executive represents that he has not heretofore assigned or transferred, or purported to assign
or transfer, to any person or entity, any claim or any portion thereof or interest therein, and the Executive agrees to indemnify,
defend and hold harmless each and all of the Released Parties against any and all disputes based on, arising out of, or in connection
with any such transfer or assignment, or purported transfer or assignment, of any claims or any portion thereof or interest therein.

 

		23.	Severability. If any provision of this Agreement or the application thereof is held invalid, the invalidity shall
not affect other provisions or applications of the Agreement which can be given their intended effect without the invalid provisions
or applications and to this end the provisions of this Agreement are declared to be severable. If, however, a court of competent
jurisdiction finds that any release by the Executive in Section 8 above is illegal, void, or unenforceable, the Executive will
promptly sign a release, waiver, and/or agreement that is legal and enforceable to the greatest extent permitted by law.

 

		24.	Notice. All notices, requests, demands and other communications hereunder to either party shall be in writing
and shall be delivered, either by hand, by electronic may, by facsimile, by overnight courier or by certified mail, return receipt
requested, duly addressed as indicated below or to such changed address as the party may subsequently designate:

 

To the Company:

 

Jon Scahill, President &
CEO

 

411 Theodore Fremd Ave., Suite
206S, Rye, NY 10580

 

Email: jscahill@qprc.com

 

Fax: 800-411-1560

 

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Copy to attorney for the Company:

 

Alfred Fabricant, Partner Brown
Rudnick LLP

 

7 Times Square, New York, New
York 10036

 

Email: afabricant@brownrudnick.com

 

Fax: 212-938-2983

 

To the Executive:

 

Herbert Reichlin

 

19 Fortune Lane, Jericho, NY
11573

 

Email: herbr@optonline.net

 

		25.	Governing Law and Jurisdiction. This Agreement is made and shall be interpreted, enforced and governed under
Delaware law, without regard to conflict of laws principles. Any and all disputes arising out of or relating to this Agreement
shall be resolved exclusively in the Delaware Chancery Court, and both the Company and the Executive hereby submit to the personal
jurisdiction of that court for purposes of resolving any such disputes.

 

		26.	Counterparts. This Agreement may be executed in one or more counterparts. The execution of a signature page of
this Agreement shall constitute the execution of the Agreement, and the agreement shall be binding on each party upon the date
of signature, if each party executes such counterpart. A copy, facsimile or electronically transmitted signatures shall be given
the same force and effect as original signatures.

 

		27.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Executive and the Company
(and the Released Parties) and each party’s respective heirs, representatives, executors, administrators, successors and
assigns.

 

		28.	Construction. Throughout this Agreement, nouns, pronouns and verbs will be construed as masculine, feminine,
neuter, singular or plural, whichever will be applicable. All references herein to "Sections" will refer to corresponding
provisions of this Agreement. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties,
and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions
of this Agreement. The word "including" will mean including without limitation. The headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

		29.	Expenses. Each of the parties hereto shall pay its own fees and expenses incurred in connection with this Agreement
and the consummation of the transactions contemplated hereby.

 

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		30.	Entire Agreement: This Agreement is intended to and does constitute and contain the entire agreement and understanding
concerning: the Executive’s employment with and separation from the Company; the Reichlin Loan; and the other subject matters
addressed herein between the parties, and supersedes and replaces all prior negotiations and all agreements proposed or otherwise,
whether written or oral, concerning the subject matters hereof. It is agreed that there are no collateral agreements or representations,
written or oral, regarding the terms and conditions of the Executive’s employment with and separation from the Company, the
Reichlin Loan, and settlement of all claims between the parties other than those set forth in this Agreement. The Executive represents
and agrees that no promises, statements or inducements have been made to him which caused him to sign this Agreement other than
those which are expressly stated in this Agreement. This is an integrated document and may not be altered except by written agreement
signed by an officer designated by the Company, and the Executive.

 

THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT
AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, AND INTENDING TO BE LEGALLY BOUND, THE PARTIES TO THIS
AGREEMENT HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW AND SHALL BE EFFECTIVE AS TO SEPARATE PORTIONS HEREOF ON THE RESPECTIVE
DATES SET FORTH BELOW.

 

	QUEST PATENT RESEARCH CORPORATION	 	HERBERT M. REICHLIN
	 	 	 
	BY: /s/ Jon C. Scahill	 	BY: /s/ Herbert M. Reichlin
	 	 	 
	DATE: October 10, 2014	 	DATE: October 10, 2014

 

 

10Exhibit 10.5

 

RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

AGREEMENT dated as this 30th day
of November, 2014, by and between Quest Patent Research Corporation, a Delaware corporation with its principal office at 411 Theodore
Fremd Ave, Suite 206S, Rye, New York 10580 (the “Company”), and Jon C. Scahill, residing at (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Company has engaged Executive as
its chief executive officer and desires to continue to obtain the benefits of Executive’s knowledge, skill and ability in
connection with managing the operations of the Company and to continue to employ Executive on the terms and conditions hereinafter
set forth; and

 

WHEREAS, Executive desires to provide his services
to the Company and to accept employment by the Company on the terms and conditions hereinafter set forth;

 

WHEREAS, on July 24, 2014, the Company and Executive
entered into an executive employment agreement dated as of January 1, 2014, which was superseded by a restated employment agreement
dated as of October 30, 2014 (collectively, the “Prior Employment Agreement”); and

 

WHEREAS, the Company and Executive desire to
amend restate the Prior Employment Agreement in its entirety, with this restated executive employment replacing in its entirety
the Prior Employment Agreement;

 

NOW, THEREFORE, in consideration of the mutual
promises set forth in this Agreement, the parties agree as follows:

 

1.Employment and Duties.

 

(a)Subject to the terms and conditions hereinafter
set forth, the Company hereby employs the Executive as its President and Chief Executive Officer, and he shall have the duties
and responsibilities associated with the chief executive officer of a public corporation. The Executive shall report to the Company’s
board of directors (the “Board”). Executive shall also perform such other duties and responsibilities as may be determined
by the Board, as long as such duties and responsibilities are consistent with those of the Chief Executive Officer. Additionally,
during the Term, as hereinafter defined, the Company shall include the Executive as one of the Board’s nominees for election
as a director of the Company.

 

(b)The Executive shall serve as a director
of the Company or any of its subsidiaries, if elected, and in such executive capacity or capacities with respect to any affiliate
of the Company to which he may be elected or appointed, provided that such duties are consistent with those of the Company’s
chief executive officer. The Executive shall receive no additional compensation for services rendered pursuant to this Section
1(b).

 

(c)Unless terminated earlier as provided for
in Section 6 of this Agreement, this Agreement shall have an initial term (the “Initial Term”) of three years commencing
as of January 1, 2014 and expiring on December 31, 2016, and shall continue on a year-to-year basis unless terminated by either
party on not less than 90 days’ written notice prior to the expiration of the Initial Term or any one-year extension. The
Initial Term and the one-year extension are collectively referred to as the “Term.”

 

    	 

    	 

    

 

2.Executive’s Performance.
Executive hereby accepts the employment contemplated by this Agreement. During the Term, Executive shall devote substantially all
of his business time to the performance of his duties under this Agreement, and shall perform such duties diligently, in good faith
and in a manner consistent with the best interests of the Company.

 

3.Compensation and Other Benefits.

 

(a)For his services to the Company during
the Term, the Company shall pay the Executive an annual salary (“Salary”) at the rate of $252,000.00. The Executive’s
Salary shall be reviewed at least annually by the Company’s compensation committee and may be increased (but not decreased)
in the sole discretion of the compensation committee. All Salary payments shall be payable in such installments as the Company
regularly pays its executive officers, but not less frequently than semi-monthly. In the event that the Company does not have a
compensation committee, all references in this Agreement to the compensation committee shall be deemed to refer to the Board without
the participation or attendance by the Executive.

 

(b)The Executive shall be entitled to an annual
bonus (the “Bonus”) if the Company meets or exceeds performance criteria established by the compensation committee.

 

(c)The Company shall grant the Executive the
following equity incentive compensation:

 

(i)A warrant to purchase 60,000,000 shares
of the Company’s common stock at an exercise price of $0.004 per share, which is not less than the fair market value on the
date of this Agreement and is the same price per share as reflected in the Prior Employment Agreement, the warrant being immediately
exercisable and having an exercise period which ends on March 1, 2018.

 

(ii)A restricted stock grant of 30,000,000
shares of the Company’s common stock, pursuant to which the Executive’s right to the share vests on January 15, 2015,
provided, that the if the Executive is not employed by the Company at such date other than as a result of his death or disability
his rights to the shares shall be forfeited; provided, further, that the Executive shall have the voting rights to the shares immediately
upon issuance.

 

(iii)The Executive shall be eligible to
participate in any equity incentive plan which the Company may, from time to time, adopt, it being understood that any awards or
grants pursuant to such plans shall be in the sole discretion of the compensation committee.

 

(iv)The Executive acknowledges that (A)
the equity incentive compensation set forth in s 3(d)(i) and 3(d)(ii) of this Agreement replaces and supersedes any incentive compensation
authorized or granted pursuant to the Prior Employment Agreement as well as any other agreements or understandings, formal or informal,
which were executed or agreed upon prior to the execution of this Agreement, and (B) no previously authorized equity compensation
has been issued to the Executive.

 

(d)In addition to Salary, Bonus and equity
incentive, the Executive shall receive the following benefits during the Term, to the extent that they are provided to other key
employees of the Company:

 

(i)Major medical health insurance for the
Executive and members of his immediate family.

 

(ii)Accident and life insurance and officer’s
life insurance to the extent such benefits.

 

    	- 2 -

    	 

    

 

(iii)Retirement plans, including 401(k)
plans.

 

(iv)Other benefit plans.

 

(v)Vacation in accordance with Company policy;
provided, that the Executive shall be entitled to not less than four weeks of vacation per year, which may be taken in accordance
with the Company’s vacation policy; provided, that the Executive shall not be entitled to carry more than two weeks of vacation
time to another year.

 

(vi)A laptop computer, with normal business
software installed, and a cellular phone with normal business applications included, and the related telephone service.

 

4.Reimbursement of Expenses. The
Company shall reimburse the Executive, upon presentation of proper expense statements, for all authorized, ordinary and necessary
out-of-pocket expenses reasonably incurred by Executive during the Term in connection with the performance of his services pursuant
to this Agreement in accordance with the Company’s expense reimbursement policy.

 

5.Waiver of Accrued Compensation.
In recognition of the Company’s financial condition, the Executive hereby irrevocably and unconditionally forgives and waives
his right to receive salary for periods prior to January 1, 2014 in the aggregate amount of $1,167,705.

 

6.Termination of Employment.

 

(a)This Agreement and Executive’s employment
shall terminate immediately upon the death of the Executive.

 

(b)This Agreement and Executive’s employment,
may be terminated by the Executive or by the Company on not less than thirty (30) days’ written notice in the event of Executive’s
Disability. The term “Disability” shall mean any illness, disability or incapacity of the Executive which prevents
him from substantially performing his regular duties for a period of three (3) consecutive months or four (4) months, even though
not consecutive, in any twelve (12) month period.

 

(c)The Company may terminate this Agreement
and the Executive’s employment for cause, in which event no further Salary, Bonus or other benefits shall be payable to Executive
subsequent to the date of termination. The term “Cause” shall mean:

 

(i)repeated failure to perform material
instructions from the Board, provided that such instructions are reasonable and consistent with Executive’s duties as set
forth in Section 1 of this Agreement, which failure shall not have been cured within 30 days of his receipt of written notice setting
forth in reasonable detail the nature of such failure;

 

(ii)a breach of Sections 7, 8 or 9 of this
Agreement;

 

(iii)fraud, dishonesty, gross misconduct
or other breach of trust whereby the Executive obtains personal gain or benefit at the expense of or to the detriment of the Company;

 

(iv)a conviction of or plea of nolo contendere
or similar plea by the Executive of any felony;

 

(v)a conviction of or plea of nolo contendere
or similar plea by of any other crime involving theft or misappropriation of property;

 

    	- 3 -

    	 

    

 

(d)If the Company proposes to terminate
this Agreement pursuant to clause (i) of Section 6(c), and the Executive disputes the basis for termination, the Executive shall
have a reasonable opportunity to respond to the Board and to be represented before the Board by counsel.

 

(e)The Executive may terminate this Agreement
on 30 days’ written notice for Good Reason. As used in this Agreement, the term “Good Reason” shall mean:

 

(i)Any change in the duties to be performed
by the Executive, without the consent of the Executive, which represent a diminution of the duties set forth in Section 1 of this
Agreement or which are inconsistent with the duties set forth in said Section 1.

 

(ii)Any change in the Executive’s
title, without the consent of the Executive, such that the Executive is no longer the Company’s chief executive officer.

 

(iii)Any termination by the Executive of
this Agreement within twelve months following a change of control of the Company. A change of control shall occur or be deemed
to have occurred if (A) any “person” (as such term is used in s 13(d) and 14(d)(2) of the Securities Exchange Act of
1934, as amended) is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 50% percent
or more of the combined voting power of the Company’s then outstanding securities, or (B) during any period of two (2) consecutive
years, individuals who at the beginning of such period constitute the Board cease for any reason to constitute a least a majority
thereof unless the election of each new director was nominated, ratified or approved by at least two-thirds (2/3) of the directors
then still in office who were either directors at the beginning of such period or who were elected or appointed with the approval
or ratification of at least two-thirds (2/3) of the directors who were directors at the beginning of such period, or (C) a sale
by the Company of all or substantially all of its business and assets to an entity which is not affiliated with the Company or
(D) the Board of Directors shall have determined that an event, other than as described in clauses (A), (B) or (C) of this Section
6(e)(iii), results in a change of control. Notwithstanding the foregoing, the following stock issuances or acquisitions shall not
be treated as a change of control:

 

(A)Any acquisitions of Common Stock or
securities convertible into or exchangeable for Common Stock if such acquisition was acquired directly from the Company; and

 

(B)Any acquisition of Common Stock or
securities convertible into Common Stock by any employee benefit plan or employee stock ownership plan or any related trust.

 

(iv)Any material breach by the Company of
the terms of this Agreement, which shall not have been cured within 30 days after notice from the Executive setting forth the nature
of the breach.

 

(f)In the event that either (x) the Company
terminates Executive’s employment other than as provided in Sections 6(a), (b) and (c) of this Agreement or (y) the Executive
terminates this agreement for Good Reason, the prohibitions of Section 8 of this Agreement shall terminate and the Company shall
pay to Executive as severance payments:

 

(i)Accrued Salary, Bonus (on a pro rata
basis, based on the most recent Bonus paid or accrued to the Executive) and vacation pay through the date of termination.

 

(ii)The Executive’s Salary as provided
in this Agreement for the balance of the Term, (B) the Bonus paid to Executive for the previous year, both of which shall be paid
in twelve (12) equal monthly installments commencing within the month following the month in which Executive’s termination
occurs.

 

    	- 4 -

    	 

    

 

(iii)Continued coverage for a period or
twelve months following termination, at the Company’s expense, under medical benefit plans in effect during such period;
provided, however, that in the event that the insurance carriers for such benefit plans do not permit the inclusion of individuals
who are no longer employees, the Company shall pay to the Executive the amount it would pay the insurance company for the Executive’s
coverage if he continued as an employee of the Company.

 

(g)In the event that the Company terminates
this Agreement pursuant to Sections 6(a), 6(b) or 6(c) or the Executive terminates this Agreement pursuant to Section 6(b) or terminates
this Agreement other than for Good Reason, the Executive shall be entitled to all accrued salary, bonus, vacation pay and other
benefits through the date of his death.

 

(h)Any payments due to the Executive pursuant
to this Agreement shall be subject to deduction for all federal and state withholding taxes, FICA, Medicare and any other applicable
deductions.

 

7.Trade Secrets and Proprietary Information.

 

(a)The Executive recognizes and acknowledges
that the Company, through the expenditure of considerable time and money, has developed and will continue to develop in the future
information concerning customers, clients, marketing, patents, products, services, business, research and development activities
and operational methods of the Company and its customers or clients, contracts, financial or other data, technical data or any
other confidential or proprietary information possessed, owned or used by the Company, the disclosure of which could or does have
a material adverse effect on the Company, its business, any business it proposes to engage in, its operations, financial condition
or prospects and that the same are confidential and proprietary and considered “confidential information” of the Company
for the purposes of this Agreement. In consideration of his employment, the Executive agrees that he will not, during or after
the Term, without the consent of the Board make any disclosure of confidential information now or hereafter possessed by
the Company, to any person, partnership, corporation or entity either during or after the term here of, except that nothing in
this Agreement shall be construed to prohibit Executive from using or disclosing such information (a) if such disclosure is necessary
in the normal course of the Company’s business in accordance with Company policies or instructions or authorization from
the Board, (b) such information shall become public knowledge other than by or as a result of disclosure by a person not having
a right to make such disclosure, (c) complying with legal process as provided in Section 7(b) of this Agreement, or (d) subsequent
to the Term, if such information shall have either (i) been developed by Executive independent of any of the Company’s confidential
or proprietary information or (ii) been disclosed to Executive by a person not subject to a confidentiality agreement with or other
obligation of confidentiality to the Company. For the purposes of Sections 7, 8 and 9 of this Agreement, the term “Company”
shall include the Company, its parent, its subsidiaries and affiliates.

 

(b)In the event that any confidential
information is required to be produced by Executive pursuant to legal process, the Executive shall give the Company notice of such
legal process within a reasonable time, but not later than ten business days prior to the date such disclosure is to be made, unless
Executive has received less notice, in which event the Executive shall immediately notify the Company. The Company shall have the
right to object to any such disclosure, and if the Company objects (at the Company’s cost and expense) in a timely manner,
the Executive shall not make any disclosure until there has been a court determination on the Company’s objections. If disclosure
is required by a court order, final beyond right of review, or if the Company does not object to the disclosure, the Executive
shall make disclosure only to the extent that disclosure is required by the court order, and the Executive will exercise reasonable
efforts, to obtain reliable assurance that confidential treatment will be accorded the Confidential Information.

 

    	- 5 -

    	 

    

 

(c)The Executive shall, upon expiration
or termination of the Term, or earlier at the request of the Company, turn over to the Company all documents, papers, computer
disks or other material in the Executive’s possession or under the Executive’s control which may contain or be derived
from confidential information. To the extent that any confidential information is on Executive’s hard drive or other storage
media, he shall, upon the request of the Company, cause such information to be erased from his computer disks and all other storage
media.

 

8.Covenant Not To Solicit or Compete.

 

(a)During the period from the date of
this Agreement until one (1) year following the date on which Executive’s employment is terminated, subject to Section 6(f)
of this Agreement, Executive will not, directly or indirectly:

 

(i)Persuade or attempt to persuade any person
or entity which is or was a customer, client or supplier of the Company to cease doing business with the Company, or to
reduce the amount of business it does with the Company (the terms “customer” and “client” as used in this
Section 8 to include any potential customer or client to whom the Company submitted bids or proposals, or with whom the Company
conducted negotiations, during the term of Executive’s employment or during the twelve (12) months preceding the termination
of his employment;

 

(ii)solicit for himself or any other person
or entity other than the Company the business of any person or entity which is a customer or client of the Company, or was a customer
or client of the Company within one (1) year prior to the termination of his employment;

 

(iii)persuade or attempt to persuade any
employee of the Company, or any individual who was an employee of the Company during the one (1) year period prior to the termination
of this Agreement, to leave the Company’s employ, or to become employed by any person or entity other than the Company; or

 

(iv)engage in any business in the United
States whether as an officer, director, consultant, partner, guarantor, principal, agent, employee, advisor or in any manner, which
directly competes with the business of the Company as it is engaged in at the time of the termination of this Agreement, unless,
at the time of such termination or thereafter during the period that the Executive is bound by the provisions of this Section 8,
the Company ceases to be engaged in such activity, provided, however, that nothing in this Section 8 shall be construed to prohibit
the Executive from owning an interest of not more than five (5%) percent of any public company engaged in such activities.

 

(b)The Executive acknowledges that the
restrictive covenants (the “Restrictive Covenants”) contained in Sections 7 and 8 of this Agreement are a condition
of his employment and are reasonable and valid in geographical and temporal scope and in all other respects. If any court or arbitrator
determines that any of the Restrictive Covenants, or any part of any of the Restrictive Covenants, is invalid or unenforceable,
the remainder of the Restrictive Covenants and parts thereof shall not thereby be affected and shall remain in full force and effect,
without regard to the invalid portion. If any court or arbitrator determines that any of the Restrictive Covenants, or any part
thereof, is invalid or unenforceable because of the geographic or temporal scope of such provision, such court or arbitrator shall
have the power to reduce the geographic or temporal scope of such provision, as the case may be, and, in its reduced form, such
provision shall then be enforceable.

 

    	- 6 -

    	 

    

 

9.Ownership of Intellectual Property.

 

(a)“Inventions” means all inventions,
ideas, discoveries, developments, methods, data, information, improvements, original works, know-how, including, but not limited
to, algorithms, technology, trade secrets, processes, codes and hardware (whether or not reduced to practice and whether or not
protectable under state, federal, or foreign patent, copyright, trade secrecy or similar laws) which:

 

(i)relate to the Company’s business
at the time of conception or reduction to practice or actual or demonstrably anticipated research or development of Company that
were conceived, created or developed by the Executive (whether alone or with others, whether or not during working hours or on
the Company’s premises or whether or not using material or property provided by the Company) during the Term or having conceived,
created or developed prior to the Term while Executive was employed by the Company; and/or

 

(ii)were conceived, created or developed
by the Executive (whether alone or with others) during the Term, even if having possibly conceived, created or developed prior
to the Term but completed while in the employ of the Company, or which result from any work performed by the Executive for Company.

 

(b)All Inventions are, will be, and shall
constitute “works-for-hire” and the exclusive property of the Company, and the Company may use and exploit them without
restriction or additional compensation to the Executive. The Executive shall promptly and fully disclose to the Company any and
all Inventions. The Executive shall maintain complete written records of all Inventions and of all work or investigations done
or carried out by the Executive at all stages thereof, which records shall be the exclusive property of the Company and will be
treated as confidential information for all purposes of this Agreement.

 

(c)The Executive hereby irrevocably assigns
and transfers to the Company, its successors, assigns or Affiliates, as the case may be, all of Executive’s right, title
and interest in and to any Inventions without additional consideration therefor from the moment of their creation or inception,
to be held and enjoyed by the Company, its successors, assigns or Affiliates, as the case
may be, to the full extent of the term for which any intellectual property protection may be granted and as fully as the same would
have been held by Executive had this Agreement, or such assignment or transfer not been made. In addition to the foregoing
assignments of Inventions to the Company, Executive hereby irrevocably assigns and transfers to the Company: (i) all worldwide
patents, trademarks, copyrights, mask works, trade secrets, applications for the foregoing and other intellectual property rights
in any Inventions; and (ii) any and all “Moral Rights” (as defined below) that Executive may have in or with respect
to any Inventions. Executive hereby forever waives and agrees never to assert any and all Moral Rights Executive may have in or
with respect to any such Inventions, even after the termination of Executive’s employment.

 

(d)“Moral Rights” means
any right to claim authorship of any Inventions, or to withdraw from circulation or control the publication or distribution of
any Inventions, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty,
regardless of whether or not such right is denominated or generally referred to as a moral right.

 

    	- 7 -

    	 

    

 

(e)Executive agrees to cooperate fully in
obtaining patent, copyright or other proprietary protection for such Inventions, all in the name of the Company, its
successors, assigns  or Affiliates, as the case may be, and at the Company’s cost and expense, and shall execute and
deliver all requested applications, assignments and other documents and take such other actions as the Company, its
successors, assigns or Affiliates, as the case may be, shall request in order to perfect, enforce and exploit the Company’s,
its successors,’ assigns’ or Affiliates,’ as the case may be, right
in the Inventions (including transfer of possession to the Company, its successors, assigns
or Affiliates, as the case may be, of all Inventions embodied in tangible materials), including granting Company a non-revocable,
royalty-free license in any pre-existing works. Executive irrevocably designates and appoints the Company and its duly authorized
officers and agents as his agents and attorneys-in-fact to execute and file any and all applications and other necessary documents
and to do all other lawfully permitted acts to further perfect the and enforce the Company’s, its
successors,’ assigns’ or Affiliates,’ as the case may be, right in the Inventions and to further the prosecution,
issuance or enforcement of patents, copyrights, trade secrets and similar protections related to the Inventions with the same legal
force and effect as he had executed them himself. The Executive shall receive no additional
compensation for complying with Executive’s obligations under this Section 9. The Executive agrees that to the extent this
Agreement shall be construed in accordance with the laws of any state that limits the assignability to the Company, its successors,
assigns or Affiliates, as the case may be, of the Inventions, this Agreement shall be interpreted not to apply to any Invention
which a court rules or the Company agrees is subject to such state limitation.

 

(f)Any copyrightable work created by the Executive
in connection with or during the performance of his employment duties, whether published or unpublished, shall be the property
of the Company as author and owner of copyright in such work.

 

(g)The Executive warrants and represents that
there are no Inventions (whether patentable or not), patents, trade secrets, trademarks, trade names, copyrights, or other intellectual
property owned by him prior to entering into employment with the Company hereunder, and that he has not executed and will not execute
any document or instrument in conflict herewith.

 

(h)An “Affiliate” shall mean any
person or entity which controls, is controlled by or is under common control with the Company.

 

10.Injunctive Relief. The Executive
agrees that his violation or threatened violation of any of the provisions of Sections 7, 8 or 9 of this Agreement shall cause
immediate and irreparable harm to the Company. In the event of any breach or threatened breach of any of said provisions, the Executive
consents to the entry of preliminary and permanent injunctions by a court of competent jurisdiction prohibiting the Executive from
any violation or threatened violation of such provisions and compelling the Executive to comply with such provisions. This Section
10 shall not affect or limit, and the injunctive relief provided in this Section 10 shall be in addition to, any other remedies
available to the Company at law or in equity or in arbitration for any such violation by the Executive. Subject to Section 8(b)
of this Agreement, the provisions of Sections 7, 8, 9 and 10 of this Agreement shall survive any termination of this Agreement
and the Executive’s employment.

 

11.Indemnification. The Company shall
provide Executive with payment of legal fees and indemnification to the maximum extent permitted by the Company’s Certificate
of Incorporation, By-Laws, and the Delaware General Corporation Law.

 

    	- 8 -

    	 

    

 

12.Mutual Releases.

 

(a)For valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, Executive does hereby release and discharge, to the maximum extent permitted by
law, the Company, its directors and officers acting in such capacities, and its attorneys and their respective heirs, executors,
administrators, successors and assigns (collectively, the “Company Releasees”) from any and all actions, causes of
action, suits, debts, sums of money, accounts, reckonings, notes, bonds, warrants, bills, specialties, covenants, contracts, controversies,
agreements, liabilities, obligations, undertakings, promises, damages, claims and demands whatsoever, in law, admiralty or equity
which against them or any of them, Executive and his heirs, executors and administrators ever had, now have or in the future can,
shall or may have, against any of the Company Releasees for, upon or by reason or any matter, cause or thing arising from the beginning
of the world to the date of this Release; provided, however, nothing in this Section 12(a) shall in any manner reduce, release
or otherwise affect any of the Company’s obligations under this Agreement or any indemnification agreement to which the Company
and Executive are parties.

 

(b)For valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Company does hereby release and discharge, to the maximum extent permitted
by law, Executive and his heirs, executors, administrators, successors and assigns (collectively, the “Executive Releasees”)
from any and all actions, causes of action, suits, debts, sums of money, accounts, reckonings, notes, bonds, warrants, bills, specialties,
covenants, contracts, controversies, agreements, liabilities, obligations, undertakings, promises, damages, claims and demands
whatsoever, in law, admiralty or equity which against them or any of them, the Company and its successors and assigns ever had,
now have or in the future can, shall or may have, against any of the Executive Releasees for, upon or by reason or any matter,
cause or thing arising from the beginning of the world to the date of this Release; provided, however, nothing in this Section
12(b) shall in any manner reduce, release or otherwise affect any of the Executive’s obligations under this Agreement or
any indemnification agreement to which the Company and Executive are parties.

 

13.Representations and Warranties of
the Parties.

 

(a)The Executive represents, warrants, covenants
and agrees that he has a right to enter into this Agreement, that he is not a party to any agreement or understanding, oral or
written, which would prohibit performance of his obligations under this Agreement, and that he will not use in the performance
of his obligations hereunder any proprietary information of any other party which he is legally prohibited from using.

 

(b)The Company represents, warrants and agrees
that it has full power and authority to execute and deliver this Agreement and perform its obligations hereunder.

 

14.Miscellaneous.

 

(a)The Executive will cooperate with the
Company in connection with any application by the Company’s to obtain key-man life insurance on his life, on which the Company
will be the beneficiary. Such cooperation shall include the execution of any applications or other documents requiring his signature
and submission of insurance applications and submission to a physical.

 

(b)Any notice, consent or communication
required under the provisions of this Agreement shall be given in writing and sent or delivered by hand, overnight courier or messenger
service, against a signed receipt or acknowledgment of receipt, or by registered or certified mail, return receipt requested, or
telecopier, email or similar means of communication (collectively “electronic communications”) if receipt is acknowledged
or if transmission is confirmed by mail as provided in this Section 14(b), to the parties at their respective addresses set forth
at the beginning of this Agreement or by electronic delivery to the telecopier or email set forth on the signature page of this
Agreement, with notice to the Company being sent to the attention of the individual who executed this Agreement on behalf of the
Company. Either party may, by like notice, change the person, address or electronic communications number or address to which notice
is to be sent. If no telecopier number is provided for either party, notice to such party shall not be sent by telecopier.

 

    	- 9 -

    	 

    

 

(c)This Agreement shall in all respects
be construed and interpreted in accordance with, and the rights of the parties shall be governed by, the laws of the State of New
York applicable to contracts executed and to be performed wholly within such State, without regard to principles of conflicts of
laws except that the provisions of Section 11 shall be governed by the Delaware General Corporation law.

 

(d)Except for actions, suits, or proceedings
taken pursuant to or under Section 6, 7, 8 or 9 of this Agreement, any dispute concerning this Agreement or the rights of the parties
hereunder shall be submitted to binding arbitration in New York City before a single arbitrator under the rules of the American
Arbitration Association. The award of the arbitrator shall be final, binding and conclusive on all parties, and judgment on such
award may be entered in any court having jurisdiction. The arbitrator shall have the power, in his discretion, to award counsel
fees and costs to the prevailing party. The arbitrator shall have no power to modify or amend any specific provision of this Agreement
except as expressly provided in Section 14(c) of this Agreement.

 

(e)Notwithstanding the provisions of Section
14(b) of this Agreement, with respect to any claim for injunctive relief or other equitable remedy pursuant to Section 10 of this
Agreement or any claim to enforce an arbitration award or to compel arbitration, the parties hereby (i) consents to the exclusive
jurisdiction of the United States District Court for the Southern District of New York and Supreme Court of the State of New York
in the County of New York or Westchester, (ii) agree that any process in any action commenced in such court under this Agreement
may be served upon him personally, either (A) by certified or registered mail, return receipt requested, or by Federal Express
or other courier service which obtains evidence of delivery, with the same full force and effect as if personally served upon him
in New York City or Suffolk County, as the case may be, or (B) by any other method of service permitted by law, and (iii) waives
any claim that the jurisdiction of any such court is not a convenient forum for any such action and any defense of lack of in
personam jurisdiction with respect thereof.

 

(f)If any term, covenant or condition
of this Agreement or the application thereof to any party or circumstance shall, to any extent, be determined to be invalid or
unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to parties or circumstances
other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition
of this Agreement shall be valid and be enforced to the fullest extent permitted by law, and any court or arbitrator having jurisdiction
may reduce the scope of any provision of this Agreement, including the geographic and temporal restrictions set forth in Section
8 of this Agreement, so that it complies with applicable law.

 

(g)This Agreement constitute the entire
agreement of the Company and the Executive as to the subject matter hereof, superseding all prior or contemporaneous written or
oral understandings or agreements, including the Prior Employment Agreement and any and all other previous employment agreements
or understandings, all of which are hereby terminated, with respect to the subject matter covered in this Agreement (except that
any non-disclosure provisions contained therein, which shall continue in effect except to the extent modified by this Agreement).
This Agreement may not be modified or amended, nor may any right be waived, except by a writing which expressly refers to this
Agreement, states that it is intended to be a modification, amendment or waiver and is signed by both parties in the case of a
modification or amendment or by the party granting the waiver. No course of conduct or dealing between the parties and no custom
or trade usage shall be relied upon to vary the terms of this Agreement. The failure of a party to insist upon strict adherence
to any term of this Agreement on any occasion shall not be considered a waiver or deprive that party of the right thereafter to
insist upon strict adherence to that term or any other term of this Agreement.

 

    	- 10 -

    	 

    

 

(h)Neither party hereto shall have the
right to assign or transfer any of its or his rights hereunder except in connection with a merger of consolidation of the Company
or a sale by the Company of all or substantially all of its business and assets.

 

(i)This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective heirs, successors, executors, administrators and permitted
assigns.

 

(j)The headings in this Agreement are
for convenience of reference only and shall not affect in any way the construction or interpretation of this Agreement.

 

(k)No delay or omission to exercise any
right, power or remedy accruing to either party hereto shall impair any such right, power or remedy or shall be construed to be
a waiver of or an acquiescence to any breach hereof. No waiver of any breach hereof shall be deemed to be a waiver of any other
breach hereof theretofore or thereafter occurring. Any waiver of any provision hereof shall be effective only to the extent specifically
set forth in an applicable writing. All remedies afforded to either party under this Agreement, by law or otherwise, shall be cumulative
and not alternative and shall not preclude assertion by such party of any other rights or the seeking of any other rights or remedies
against any other party.

 

[Signatures on following page]

 

    	- 11 -

    	 

    

 

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

 

	Telecopier
    and Email	Signature 
	 	 	 
	 	QUEST PATENT RESEARCH CORPORATION
	 	 	 
	 	By:	/s/ William Ryall Carroll
	 	 	Dr. William Ryall Carroll, director
	 	 	 
	 	By:	/s/ Timothy J. Scahill
	 	 	Timothy J. Scahill, director
	 	 	 
	 	 	/s/ Jon C. Scahill
	 	 	
        

        Jon C. Scahill

 

 

 

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