Document:

exh10-1.htm

Exhibit 10.1

Selling Agreement

This Selling Agreement (“Agreement”) is made effective the 10th day of September, 2013, by and between PENNALUNA & COMPANY, INC. of Coeur d’Alene, Idaho, an Idaho corporation and FINRA member broker-dealer, (“Agent”) and IDAHO NORTH RESOURCES CORP. of 2555 W. Palais Drive, Coeur d’Alene, Idaho 83815, an Idaho corporation (“Issuer”).

Recitals

	
  

	
A.

	
Issuer’s common stock is quoted on the Pink OTC (formerly the Pink Sheets) with the trading symbol IDAH.

	
  

	
B.

	
Issuer desires to raise funds through a private offering of stock to investors (“Offering”), and intends to sell up to approximately 3,000,000 units or more at a price of US $0.10 per unit, with each unit consisting of one common share and one half warrant to purchase an additional one half common share at a price of $0.25 per whole share, exercisable for a three year period after unit purchase.

	
  

	
C.

	
The Offering will be made pursuant to exemptions from registration provided by federal and state law and various rules and regulations promulgated pursuant thereto.

	
  

	
D.

	
The offering will be made pursuant to an Offering Memorandum to be provided by Issuer and which is presently in preparation, with this Memorandum to be in customary form and to comply with the rules and regulations referenced above (“Offering Memorandum”).

	
  

	
E.

	
Issuer desires Agent to assist in the intended Offering, to secure investors and to act as financial advisers to Issuer when appropriate.

	
  

	
F.

	
Agent is a member of the Financial Industry Regulatory Authority (FINRA) and is willing as a non-exclusive agent to assist in sales of units in the Offering on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

	
1.

	
Appointment of Agent. Issuer hereby appoints Agent as its non-exclusive agent for the period of the offering to sell the units described above of the stock of Issuer (these units are hereafter referred to as “Stock”).

	
2.

	
Acceptance of Appointment; Best Efforts. Agent hereby accepts the appointment as agent and agrees to use its best efforts to find purchasers for the Stock; however, Agent expressly makes no commitment to itself purchase any of the shares of Stock.

	
3.

	
Sales by Issuer and Others. Issuer may use other agents in the sale of the Stock and may solicit and accept offers for purchase directly on its own behalf if it so desires.

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4.            Termination of Offering. The Offering will terminate upon the happening of the earlier of:

	
  

	
a.

	
the sale of all offered shares of the Offering;

	
  

	
b.

	
the expiration date, if any, set forth in the Offering Memorandum;

	
  

	
c.

	
the withdrawal or cancellation of the Offering by Issuer.

	
5.

	
Commission. When Agent makes a sale of Stock and the subscription is accepted by Issuer, Agent shall be paid a commission equal to ten percent (10%) of the price at which shares of the Stock are sold to the investor. Agent shall receive the commission promptly after the proceeds have been paid to Issuer. With respect to any Investor for whom Agent earns a commission pursuant to this Selling Agreement, for a period of twenty-four (24) months after receipt of said commission, Agent shall also be entitled to a cash commission, promptly paid, of ten percent ( 10%) due at the time said Investor exercises purchase warrants purchased under the Selling Agreement and/or makes any other additional private equity investment in Issuer, including without limitation purchases of stock, warrants, options, or other instruments representing ownership or rights to ownership other than in the public market. Agent will also receive broker warrants equivalent to 5% of the actual sales of Units made by the Agent prior to and concurrent with the closing of the initial offering. The warrants will consist of a right to buy the Units of the Issuer on the same terms and conditions as those of the investors. For clarity, the Agent will not receive additional Broker Warrants upon the exercise of warrants by purchasers, or the sale of stock, warrants, units, options, or any other equity investment in the Issuer during the 24 month “tail” period of this agreement.

	
6.

	
Stock Subscription. Investors will subscribe to the stock by completing and executing a Subscription Agreement in the form provided by Issuer with the Offering Memorandum, and tendering payment for the Stock.

	
7.

	
Delivery of Stock Subscription Agreements. Completed Subscription Agreements received by Agent will be forwarded to the Issuer.

	
8.

	
Acceptance. Issuer has the right to accept or reject every subscription and will act thereon with reasonable speed. A sale is made only upon acceptance by Issuer.

	
9.

	
Representations and Warranties of Issuer. Issuer represents and warrants that:

	
  

	
a.

	
Organization and Authority. Issuer is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada, with power and authority to own assets and to conduct its business as described or referenced in the Offering Memorandum.

	
  

	
b.

	
Capitalization. Issuer has a duly authorized and outstanding capitalization as set forth or referenced in the forthcoming Offering Memorandum, and the Stock conforms to the description contained therein. The Stock, when issued and delivered, shall be duly and validly issued, fully paid and non-assessable.

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c.

	
Offering Memorandum. The forthcoming Offering Memorandum shall not contain any untrue statement or material fact or omit to state any material fact required to be stated or necessary to make the statements in the Offering Memorandum not misleading; provided, however, that this representation and warranty does not apply to statements or omissions made in reliance upon and in conformity with information furnished to Issuer in connection with the Offering Memorandum by Agent directly or through or by counsel on Agent’s behalf. The financial statements and schedules, if any, included in the forthcoming Offering Memorandum or referenced therein present fairly the cost of the assets, the liabilities, and the capital stock of Issuer as of the dates of such statements and schedules, all in conformity with generally accepted accounting principles of this country.

	
  

	
d.

	
No Breach. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated in this Agreement (in compliance with the terms and provisions of this Agreement), shall conflict with, or result in a breach of, the Articles of Incorporation of Issuer, Bylaws of the Issuer, or any other agreement or instrument to which Issuer is a party or by which it is bound.

	
  

	
e.

	
Authorization. This Agreement has been duly authorized, executed, and delivered on behalf of Issuer, and is the valid, binding, and enforceable obligation of Issuer, except to the extent that obligations concerning indemnification under this Agreement may be limited by applicable securities laws.

	
  

	
f.

	
No Additional Authorization. No authorization, approval, or consent of any regulatory body or authority is required for the valid authorization, issuance, sale, and delivery of the Stock, or, if so required, all authorizations, approvals, and consents have been obtained and are in full force and effect.

10.           Covenants of Issuer. Issuer covenants that:

	
  

	
a.

	
Amendments and Supplements. Issuer shall not at any time make or file any amendment or supplement to the Offering Memorandum without previously providing Agent with (a) a copy of such amendment or supplement, and (b) a reasonable opportunity to comment regarding the same.

	
  

	
b.

	
Copies of Offering Memorandum. Issuer shall deliver to Agent, without charge, from time to time during the term of this Agreement, as many copies of the Offering Memorandum as Agent reasonably may request, and Issuer consents to the use of the Offering Memorandum as permitted by applicable state and federal securities and other laws.

	
  

	
c.

	
Compliance with Laws. Issuer shall use best efforts to comply with, and to continue to comply with, applicable state and federal securities and other laws so as to permit the continuation of the Offering.

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d.

	
Stop Order. Issuer promptly shall notify Agent in the event of (a) the issuance by any federal or state securities commission or authority of any stop order suspending the effectiveness of the Offering Memorandum, or (b) the institution or notice of the intended institution of any action or proceeding for that purpose. Issuer shall make every reasonable effort to prevent the issuance of a stop order, and, if a stop order is issued at any time, to obtain the withdrawal of the order at the earliest possible time.

	
11.

	
Representations and Warranties of Agent. Agent represents and warrants to Issuer that Agent is a securities broker-dealer and a member in good standing of the Financial Industry Regulatory Authority (FINRA), BD # 11604, and that persons employed by it are licensed with FINRA as required.

12.           Covenants of Agent. Agent covenants that:

	
  

	
a.

	
Statements and Actions. Agent shall not make any statement or take any action in connection with the Offering and its activities under and pursuant to this Agreement that is inconsistent with the exemptions from registration provided by federal or state law, and the regulations promulgated in connection therewith.

	
  

	
b.

	
Purchasers. Agent shall sell the Stock only to investors permitted to purchase, and in the manner permitted, by applicable state and federal securities laws.

	
  

	
c.

	
Subscriber Information. Agent shall upon request, in connection with the sale of Stock offered pursuant to the Offering Memorandum, provide information to Issuer sufficient to enable Issuer to establish and determine that all purchasers of the Stock are qualified purchasers, as defined in the Offering Memorandum and in applicable state and federal securities laws.

	
  

	
d.

	
Public Solicitation. Agent shall not sell the Stock offered pursuant to the Offering Memorandum by any means of public solicitation or general advertising, unless permitted under relevant exemptions provided by federal or state law and the regulations promulgated in connection therewith.

	
13.

	
Expenses. Issuer shall bear and pay all costs and expenses in connection with preparation and printing of the Offering Memorandum and any Questionnaire, Subscription Agreement or related documents, and any amendments or supplements thereto; federal or state filing fees in connection with the Offering; the issue and delivery of stock certificates; and the cost of furnishing the Offering Memorandum.

	
14.

	
Termination. This Agreement may be terminated at any time upon ten (10) days prior notice by either Issuer or Agent. Unless earlier terminated as provided in the preceding sentence, this Agreement shall terminate upon the occurrence and satisfactory completion of the Offering and sale of the Stock and the receipt of proceeds by Issuer and payment, except that the provisions of sentence three in paragraph 5. Commission shall continue until expiration of the 24-month period set forth therein with respect to each Investor.

15.          Indemnification.

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a.

	
Indemnification of Agent. Issuer shall indemnify and hold harmless Agent and each person, if any, who controls Agent within the meaning of Section 15 of the Securities Act from and against any and all losses, claims, damages, expenses, or liabilities, joint or several, to which they or any of them may become subject under the Securities Act or under any other statute or at common law or otherwise, and, except as provided below, shall reimburse Agent and each controlling person, if any, for any legal or other expenses reasonably incurred by them or any of them in connection with investigating or defending any actions, whether or not resulting in any liability, ‘insofar as the losses, claims, damages, expenses, liabilities, or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Offering Memorandum, or arise out of or are based upon the omission or alleged omission to state a material fact required to be stated in the Offering Memorandum or necessary in order to make the statements in the Offering Memorandum not misleading, unless the untrue statement or omission was made in the Offering Memorandum in reliance upon and in conformity with information furnished to Issuer by Agent directly or through counsel. However, this indemnification provision shall not benefit Agent or any person controlling Agent if Agent failed to send or give a copy of the Offering Memorandum to a person at or prior to the time an offer of Stock was made to that person, or acted in violation of any covenants made by Agent herein.

	
  

	
b.

	
Indemnification of Issuer. Agent shall indemnify and hold harmless Issuer, each of its directors, each of its officers who have signed the Offering Memorandum, and each person, if any, who controls Issuer within the meaning of Section 15 of the Securities Act from and against any and all losses, claims, damages, expenses, or liabilities, joint or several, to which they or any of them may become subject under the Securities Act or under any other statute or at common law or otherwise, and except as provided below, shall reimburse Issuer and each director, officer, or controlling person, if any, for any legal or other expenses reasonably incurred by them or any of them in connection with investigating or defending any actions whether or not resulting in any liability (a) insofar as the losses, claims, damages, expenses, liabilities, or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Offering Memorandum, or arise out of or are based upon the omission or alleged omission to state a material fact required to be stated in the Offering Memorandum or necessary in order to make the statements in the Offering Memorandum not misleading, but only insofar as the untrue statements or omission was made in the Offering Memorandum in reliance upon and in conformity with information furnished to Issuer by Agent, directly or through counsel.

	
  

	
c.

	
Mechanics. If any claim, demand, action or proceeding (including any governmental investigation) shall be brought or alleged against an indemnified party in respect of which indemnity is to be sought against an indemnifying party pursuant to the preceding subsections, the indemnified party shall, promptly after receipt of notice of the commencement of any such claims, demand, action or proceeding, notify the indemnifying party in writing of the commencement of such

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claim, demand, action or proceeding, enclosing a copy of all papers served, if any, provided, that the omission to so notify such indemnifying party will not relieve the indemnifying party from any liability that it may have to any indemnified party under the foregoing provisions of this Section, except and only to the extent that such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. In case any such action is brought against any indemnified party and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate in the defense therein and, to the extent that it may wish, assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be at the expense of such indemnified party, unless (a) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel; (b) the indemnifying party has assumed the defense of such proceeding and has failed within a reasonable time to retain counsel reasonably satisfactory to such indemnified party; or (c) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential conflicts of interests between them. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party or indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding.

	
16.

	
Provisions to Survive Delivery. The representations, warranties, covenants, indemnities, understandings, agreements, and other statements of Issuer and Agent contemplated by, set forth in, or made pursuant to this Agreement and the indemnification agreements of Issuer and Agent shall survive delivery of, and payment for, the Stock, and shall survive regardless of (a) any termination of this Agreement, and (b) any investigation made by, or on behalf of, either party.

17.          Miscellaneous.

	
  

	
a.

	
Amendments and Modifications. No amendment or modification of any provision of this Agreement shall be valid unless made in writing and signed by each of the parties.

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b.

	
Assignment. No party may assign its rights or obligations under this Agreement without the prior written consent of the other party.

	
  

	
c.

	
Attorneys’ Fees. If a party is in default under this Agreement, the party who is not in default shall have the right, at the expense of the party who is in default, to retain an attorney to make demand, enforce remedies, or otherwise protect or enforce the rights of the party who is not in default. The party who is in default shall pay all attorneys fees and legal costs so incurred.

	
  

	
d.

	
Binding Effect. This Agreement shall be binding upon, and shall inure to the benefit of the parties, and each of their respective successors and permitted assigns.

	
  

	
e.

	
Entire Agreement. This Agreement sets forth the entire understanding of the parties with respect to the subject matter of this Agreement and supercedes all prior agreements and understandings between the parties relating to the subject matter of this Agreement.

	
  

	
f.

	
Exhibits. Any exhibits identified in this Agreement are incorporated herein by reference.

	
  

	
g.

	
Governing Law and Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Idaho. Each party hereby consents to venue and jurisdiction in state or federal court in Kootenai County, Idaho.

	
  

	
h.

	
No Waiver. No waiver by any party of any right, default, misrepresentation, or breach of warranty or covenant under this Agreement shall be effective unless in writing and signed by the waiving party.

	
  

	
i.

	
Notices. All notices, requests, demands, claims, and other communications authorized or required to be given under this Agreement shall be in writing. Any such writing shall be deemed duly given (a) upon receipt after it is sent by United States certified mail, return receipt requested, addressed to the intended recipient as set forth below, or (b) upon receipt if sent by fax. Any party may change the address to which notices or similar written documentation are to be delivered by giving the other party notice of such change in the manner set forth in section.

	 	
If to Issuer:

	
Mark Fralich

	 	  	
Idaho North Resources Corp.

	 	  	
2555 W. Palais Drive

	 	  	
Coeur d’Alene, ID 83 815

	 	  	
Fax: (503) 313-2586

	 	  	  
	 	
If to Agent:

	
Ron Nicklas

	 	  	
Pennaluna & Co.

	 	  	
421 1⁄2 Sherman A venue Ste 203

	 	  	
Coeur d’Alene, ID 83814

	 	  	
Fax: (208) 664-2283

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j.

	
Relationship of Parties. The relationship of the parties to this Agreement is strictly that of principal and agent in connection with the selling of the Stock. This Agreement is neither intended to, nor will it be construed as, creating a joint venture, partnership, or other form of business association between the parties.

	
  

	
k.

	
Severability. If for any reason any provision of this Agreement shall be deemed by a court of competent jurisdiction to be legally invalid or unenforceable, the validity of the remainder of the Agreement shall not be affected and such provision shall be deemed modified to the minimum extent necessary to make such provision consistent with applicable law, and, in its modified form, such provision shall then be enforceable and enforced.

	
  

	
l.

	
Terminology and Construction. The headings contained in this Agreement are for convenience of reference only, will not be deemed to be a part of this Agreement, and will not be referred to in connection with the construction or interpretation of this Agreement. Whenever the context so requires, the singular number will include the plural, and visa versa; the masculine gender will include the feminine and neuter genders. Each party agrees that any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be applied in the construction or interpretation of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first written above.

	  	
IDAHO NORTH RESOURCES CORP., an Idaho

	  	
Corporation (“Issuer”)

	
 

	  
	  	
MARK A. FRALICH

	  	
By: Mark A. Fralich

	  	
Its: CEO

	
 

	  
	
 

	  
	
 

	  
	  	
PENNALUNA & COMPANY, INC., an Idaho

	  	
Corporation (“Agent”) FINRA BD # 11604

	
 

	  
	  	
By RON NICKLAS

	
 

	  
	  	
Its President

- 8-Exhibit 10.1

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(this “Agreement”), dated as of October 31, 2013, by and between ‘mktg, inc.’, a Delaware corporation
with its principal place of business at 75 Ninth Avenue, New York, New York 10011 (the “Company”) and CHARLIE
HORSEY, an individual residing at 11 Edgewood Rd., Madison, New Jersey 07940 (“Executive”).

W I T N E S S E T H :

WHEREAS, Executive currently serves as
the Company’s President and Chief Executive Officer pursuant to that certain Employment Agreement between the Company and
Executive dated as of June 30, 2008, as amended by an Amendment to Employment Agreement dated as of December 22, 2008 and a Second
Amendment to Employment Agreement dated as of May 12, 2010 (as so amended, the “Original Employment Agreement”);

WHEREAS, the Company desires to continue
to employ Executive, and Executive desires to continue to be employed by the Company, subject to the terms and conditions set forth
below;

WHEREAS, this Agreement shall be effective
upon November 1, 2013 (the “Effective Date”); and

WHEREAS, this Agreement amends, restates
and supersedes in its entirety the Original Employment Agreement, and the Original Employment Agreement shall automatically terminate
as of the Effective Date.

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

1.          Employment. The Company
hereby employs Executive and Executive hereby accepts employment by the Company for the period and on the terms and conditions
set forth in this Agreement.

2.          Position, Employment Duties
and Responsibilities. Executive shall be employed as the Company’s President and Chief Executive Officer, subject to
such reasonable duties and responsibilities granted, and restrictions imposed by the Company’s Board of Directors (the “Board”),
and subject to the Company’s company policies and procedures. In addition, so long as Executive remains the Company’s
Chief Executive Officer, the Company will nominate Executive to serve on the Board of Directors and serve as Chairman of the Board.
Throughout the term of this Agreement, Executive shall devote his entire working time, energy and skill and best efforts to the
performance of his duties hereunder in a manner which will faithfully and diligently further the business and interests of the
Company. Notwithstanding the foregoing, and subject to the prior approval of the Board not to be reasonably withheld, Executive
shall be permitted to serve as a member of the board of directors of a limited number of other organizations, to the extent such
service would not result in a conflict with Executive’s duties to the Company or interfere with the proper performance of
Executive’s duties and responsibilities hereunder.

    	 

    	 

    

3.          Working Facilities. Executive
will work out of offices of the Company located in New York, New York.

4.          Compensation and Benefits.

4.1          Base Salary. For all of the
services rendered by Executive to the Company, the Company shall pay to Executive an initial annual base salary of five hundred
thousand dollars ($500,000), payable in reasonable periodic installments in accordance with the Company’s regular payroll
practices in effect from time to time. In the event that during term the Company achieves aggregate EBITDA (as defined below),
for the most recent period of four consecutive fiscal quarters (“LTM EBITDA”) in excess of (i) $10 million,
Executive’s annual base salary shall be increased to five hundred fifty thousand dollars ($550,000), or (ii) $15 million,
Executive’s annual base salary shall be increased to six hundred thousand dollars ($600,000). If following any increase in
Executive’s annual base salary under the preceding sentence, the Company’s LTM EBITDA decreases below $10 million or
$15 million, as applicable, for two consecutive periods of four fiscal quarters (e.g., if following a salary increase under
the preceding sentence, LTM EBITDA as of both September 30, 2014 and December 31, 2014 is below $10 million or $15 million), Executive’s
annual base salary shall revert to either $500,000 (if LTM EBITDA for both periods is below $10 million) or $550,000 (if LTM EBITDA
for both periods is more than $10 million but less than $15 million). Each adjustment to Executive’s base salary under this
Section 4.1 shall be effective as of the first day of the month following the month in which the Company issues financial statements
for the quarter that requires such adjustment. Executive’s annual base salary may be further increased (but not decreased)
from time to time as the Board may determine in its sole discretion.

4.2          Signing Bonus. The Executive
shall be entitled to a signing bonus in the amount of one hundred fifty thousand dollars ($150,000), which shall be payable in
full on the Effective Date.

4.3          Annual Performance Bonuses.

(a)          EBITDA Bonus. During the
term of this Agreement, Executive shall be entitled to receive an annual incentive cash bonus with respect to each fiscal year
of the Company, equal to four percent (4%) of Pre-Bonus EBITDA (as defined below) for such year to the extent that the Company’s
Pre-Bonus EBITDA for such year equal’s the target approved of by the Board for such year (the “PB EBITDA Target”).
In the event the Company achieves Pre-Bonus EBITDA for a fiscal year less than the PB EBITDA Target but in excess of 80% of the
PB EBITDA Target (the “Threshold EBITDA”), Executive shall be entitled to a bonus equal to (a) four percent
(4%) of the PB EBITDA Target, multiplied by (b) a fraction, the numerator of which shall be the amount by which actual Pre-Bonus
EBITDA achieved by the Company for such fiscal year exceeds the Threshold EBITDA for such year, and the denominator of which shall
be the amount by which the PB EBITDA Target for such fiscal year exceeds the Threshold EBITDA for such year. In the event Pre-Bonus
EBITDA in any fiscal year exceeds the PB EBITDA Target for such year, Executive’s bonus payable under this Section 4.3(a)
shall be increased so as to equal the sum of (i) four percent (4%) of the PB EBITDA Target for such year, plus (ii) the Applicable
Percentage (defined below) of the amount by which actual Pre-Bonus EBITDA for such year exceeds the PB EBITDA Target for such year.
The “Applicable Percentage” shall be a percentage of between 4.0% and up to a maximum of 10%, increasing
by 0.5% for each 1% increase in actual Pre-Bonus EBITDA over the PB EBITDA Target. By way of example, assuming the PB EBITDA
Target for a fiscal year is $10 million, if (i) actual Pre-Bonus EBITDA for such year is $10.1 million,
the Applicable Percentage will be 4.5%, (ii) actual Pre-Bonus EBITDA for such year is $10.2 million,
the Applicable Percentage will be 5.0%, and (iii) actual Pre-Bonus EBITDA for such year is $11.2
million, the Applicable Percentage will be 10.0%. Attached as Schedule A hereto is a schedule illustrating in greater detail the
bonuses payable under this Section 4.3(a).

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(b)           Participation
in Supplemental Bonus Pool. In addition to performance bonuses to be paid to Executive under Section 4.3(a) and
to other executives of the Company as a result of actual Pre-Bonus EBITDA in a fiscal year exceeding Threshold EBITDA for such
year, the Company shall make available to senior executives of the Company, including Executive, a supplemental bonus pool (the
“Supplemental Bonus Pool”) with respect to any fiscal year in which Adjusted EBITDA (as defined below) exceeds
both (i) 20% of the Company’s operating revenue for such year, and (ii) 110% of Adjusted EBITDA for the preceding
fiscal year. The Supplemental Bonus Pool shall be equal to 36% of the amount by which Adjusted EBITDA for such fiscal year exceeds
20% of the Company’s operating revenue for such year, and shall be allocated among the Executive and other executives of
the Company as determined by the Board and the Executive.

(c)           Definitions. For purposes of
this Section 4.3

(i) “Adjusted EBITDA”
for any fiscal year means the Company’s EBITDA for such year, plus all Public Company Expenses incurred by the Company in
such year;

(ii) “EBITDA”
for any period shall be the Company’s operating income for such period, plus interest, tax, depreciation and amortization
expense for such period, plus share based compensation expense for such period, in each case, calculated in accordance with generally
accepted accounting principles and consistent with the Company’s current calculation of “Modified EBITDA” in
the reports it files with the Securities and Exchange Commission (the “SEC”); provided, however, that
EBITDA shall be (A) increased by the amount of (i) any extraordinary losses in such period, and (ii) the Company’s interest
in the net income in such period of any majority-owned subsidiaries (as adjusted to reflect any minority interest in such subsidiary),
and (B) decreased by the amount of (i) any extraordinary gains in such period, and (ii) the Company’s interest in the net
loss in such period of any majority-owned subsidiaries (as adjusted to reflect any minority interest in such subsidiary).

(iii) “Pre-Bonus EBITDA”
for any fiscal year means the Company’s EBITDA for such year, before giving effect to any bonuses paid to executive officers
of the Company (including to the Executive pursuant to this Agreement); and

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(iv) “Public Company Expenses”
shall consist of (a) printing, filing and legal fees incurred by the Company in connection with the filing of periodic reports,
proxy statements and other reports and statements with the SEC, (b) fees payable to the Company’s stock transfer agent, (c)
fees payable to the Company’s directors for serving on the Board or any committee thereof, (d) fees payable to the Company’s
independent auditors in connection with the review of its quarterly financial statements and audit of its annual financial
statements in excess of $100,000 in any fiscal year, and (e) other similar fees approved of by the Board as constituting Public
Company Expenses hereunder.

(c)           Calculation and Timing of Payment.
All calculation of bonuses payable to the Executive under this Section 4.3 Agreement with respect to any fiscal year will be made
in good faith by the Compensation Committee of the Board (or if there is then no such Committee, by the entire Board), based on
the Company’s audited financial statements for such fiscal year, and will be paid within ten (10) business days following
the completion of such audit. Executive shall only be entitled to payment of bonuses due to him under this Section 4.3 to the extent
Executive is an employee of the Company on the date such bonus is paid or required to be paid; provided, however,  that
in the event Executive’s employment with the Company is terminated following the completion of a fiscal year but prior to
the payment of bonuses with respect to such fiscal year, and such termination was by the Company without Cause (as defined in Section
7), due to the Executive’s death or disability, or by the Executive for Good Reason (as defined in Section 5.3), then the
Executive or his estate, as applicable, shall be entitled to the payment of all bonuses under this Section 4.3 for such completed
fiscal year as if Executive were an employee of the Company.

4.4          Employee Benefits. Executive
shall be entitled to participate in and be provided with health insurance, life insurance and other benefit plans and programs
offered to and or made available to the Company’s employees. In addition, Executive shall be entitled to paid holidays in
accordance with the Company’s regular policy and twenty days of vacation in each calendar year and reasonable absences for
illness. Any vacation time not taken during any calendar year of employment shall not be carried into any subsequent calendar year,
and the Company shall not be obligated to pay Executive for any vacation time available to but not used by Executive within the
prescribed period.

4.5           Travel, Entertainment and Other
Business Expenses. During the period of employment pursuant to this Agreement, Executive will be reimbursed for reasonable
expenses incurred for the benefit of the Company in accordance with the general policy of the Company. Those reimbursable expenses
shall include properly documented, authorized or otherwise reasonably required, travel, entertainment and other business expenses
incurred by Executive, other than those expenses related to or in connection with routine commutation to and from Executive’s
home, in accordance with the Company’s general policy. In addition, the Company will reimburse the Executive for legal fees
incurred by him in negotiating this Agreement in a maximum amount not to exceed $15,000, payable with ten (10) days of presentation
of invoices therefor.

4.6          Deductions. All references
herein to compensation to be paid to Executive are to the gross amounts thereof which are due hereunder. The Company shall have
the right to deduct therefrom all taxes which may be required to be deducted or withheld under any provision of the law (including,
without limitation, social security payments, income tax withholding and any other deduction required by law) now in effect or
which may become effective at any time during the term of this Agreement.

    	4

    	 

    

4.7          Option Grants.

(a)          Initial Option Grant. On
the Effective Date, Executive shall be awarded a stock option to purchase 200,000 shares of the Company’s common stock, par
value $.001 per share (“Common Stock”), at an exercise price of $2.00 per share in the form attached hereto
as Exhibit A-1. Such option shall be exercisable for a 10-year period commencing on the Effective Date, and shall vest with respect
to 40,000 shares of Common Stock on each anniversary of the Effective Date.

(b)          Liquidity Option Grant. Executive
shall be awarded an additional stock option on the Effective Date to purchase 400,000 shares of Common Stock at an exercise price
of $2.00 per share, in the form attached hereto as Exhibit A-2. Such option shall be exercisable only upon the occurrence of a
Liquidity Event (as defined below), and in such event such option shall be exercisable as to (i) 100,000 shares of Common Stock
if such Liquidity Event results in consideration paid to the Company’s stockholders of at least $2.50 per share of Common
Stock but less than $2.80 per share of Common Stock, (ii) 200,000 shares of Common Stock if such Liquidity Event results in consideration
paid to the Company’s stockholders of at least $2.80 per share of Common Stock but less than $3.10 per share of Common Stock,
(iii) 300,000 shares of Common Stock if such Liquidity Event results in consideration paid to the Company’s stockholders
of at least $3.10 per share of Common Stock but less than $6.00 per share of Common Stock, and (iv) all 400,000 shares of Common
Stock if such Liquidity Event results in consideration paid to the Company’s stockholders of $6.00 per share or more.

(c)          Liquidity Event. “Liquidity
Event” shall mean any (i) consolidation or merger of the Company where the stockholders of
the Company, immediately prior to the consolidation or merger, do not, immediately after the consolidation or merger, beneficially
own, directly or indirectly, shares representing in the aggregate fifty percent (50%) or more of the voting shares of the corporation
issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), (ii) any sale, lease,
exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan)
of all or substantially all of the assets of the Company or (iii) any liquidation or dissolution of the Company, as a result of
which (in each case of clauses (i), (ii) and (iii)), the Company’s stockholders receive cash and/or marketable securities
listed on a national securities exchange (other than of the Company). For the purpose of valuing any shares of marketable securities
received by the Company’s stockholders on a Liquidity Event, such shares shall be valued at the closing sales price of such
shares on the principal stock exchange on which such shares are listed or traded on the date of such Liquidity Event.

4.8          Life Insurance Policy. The
Company shall continue to maintain in effect the term life insurance policy insuring the life of Executive previously purchased
by the Company. Following any termination of employment, Executive shall be permitted to continue such policy by paying premiums
directly. Notwithstanding anything to the contrary in this Section 4.7, the Company shall not be obligated to expend more than
$1,000 per year to maintain such policy.

    	5

    	 

    

5.          Term; Severance.

5.1          Term. This Agreement shall
be for a term of five (5) years commencing on the Effective Date, unless sooner terminated as hereinafter provided. The term of
this Agreement shall automatically be renewed for successive periods of one year after the initial
five-year term unless either the Executive or the Company the Company delivers a written notice of termination
to the other party at least 180 days prior to the start of any such renewal period.

5.2          Severance.In the event
(a) the Company terminates Executive’s employment under this Agreement for any reason other than for “Cause”
under Section 7, or (b) Executive terminates his employment under this Agreement for Good Reason (as defined below), Executive
shall be entitled to receive (i) a cash payment in the amount of $100,000 payable within 10 business days of the date of termination,
and (ii) aggregate severance payments (“Severance Payments”), equal to 18-months’ of Executive’s
then monthly base salary under Section 4.1; provided, however, that if the Company’s LTM EBITDA as of the date of
such termination is less than $5,000,000, the Severance Payments shall be equal to 12-months’ of Executive’s then monthly
base salary under Section 4.1. The Severance Payments shall be paid to Executive in equal monthly installments, each such installment
equal to Executive’s then monthly base salary under Section 4.1, provided Executive is then in compliance with his obligations
under Section 6 of this Agreement.

5.3           Good Reason. For the
purposes hereof, “Good Reason” shall mean the occurrence of any of the following
events without Executive’s consent: (i) a reduction in Executive’s
base salary to an amount below that provided for under Section 4.1, (ii) the termination or material reduction of any material
employee benefit or perquisite enjoyed by the Executive (other than in connection with the termination
or reduction of such benefit or perquisite to all executives of the Company or as may be required by law), (iii) the Company relocates
its offices outside of the greater New York metropolitan area requiring Executive to relocate
his primary residence in order to perform his duties and responsibilities described herein; (iv) a material diminution in Employee’s
authority, duties or responsibilities, or (v) the failure of the Company to obtain the assumption in writing of its obligation
to perform this Agreement by any successor to all or substantially all of the assets of the Company within thirty (30) calendar
days after the closing of a merger, consolidation, sale or similar transaction. Notwithstanding the foregoing, following written
notice from the Executive of any of the events described in (i) through (iv) above, the Company
shall have thirty (30) calendar days in which to cure the alleged conduct.  If the Company fails to cure, the Executive’s
termination shall become effective on the 31st calendar day following such written notice.

6.          Nondisclosure and Non-Compete.

6.1          Definitions. The following
words and expressions used in this Agreement shall have the respective meanings hereby assigned to them as follows:

    	6

    	 

    

(a)         “Affiliate”
shall mean any partnership, firm, corporation, association, trust, unincorporated organization or other entity, that directly,
or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company.

(b)         “Business Associate”
shall mean and refer to any individual, partnership, corporation, associations or other business enterprise in any form which has
had in the past, have currently, shall have or be attempting to develop during the Restriction Period a business relationship with
the Company or any of its Affiliates as a customer or supplier.

(c)         “Customer”
shall mean and refer to any past or current customer of the Company or any of its Affiliates and shall also include those prospective
customers who are actively being marketed by the Company or any of its Affiliates during the term of this Agreement.

(d)         “Competitor”
shall mean and refer to any individual, partnership, corporation, association or other business enterprise in any form, other than
the Company and its subsidiaries, which at any time during the Restriction Period, either directly or indirectly, (i) engages in
the business of promotion marketing as an agent, and sells to Customers in the Restriction Area or (ii) engages in any other business
directly competitive with the Company or any of its subsidiaries and sells to Customers in the Restriction Area, provided that
work done, not as an agent, but for a principal’s own account, as an employee of such principal, shall not be considered
participation with a Competitor.

(e)         “Confidential Information”
shall mean and refer to all information of the Company and its Affiliates which is not generally known or available to the public
or a Competitor (whether or not in written or tangible form), the knowledge of which could benefit a Competitor, including without
limitation, all of the following types of information:

		(i)	information pertaining to, Customers, Personnel and Business Associates;

		(ii)	research, projections, financial information, cost and pricing information, invoices and internal accounting statistics;

		(iii)	product or service development plans and marketing strategies;
	 	 	 
	 	(iv)	purchasing methods; and

		(v)	trade secrets, or other knowledge or processes of or developed by the Company or any of its Affiliates.

(f)         “Confidential Materials”
shall mean and refer to any and all documents, materials, programs, recordings or any other tangible media (including, without
limitation, copies or reproductions of any of the foregoing) in which Confidential Information may be contained.

    	7

    	 

    

(g)          “Personnel”
shall mean and refer to any and all employees, contractors, agents, brokers, consultants or other individuals rendering services
to the Company or any of its Affiliates for compensation in any form, whether employed by or independent of the Company or any
of its Affiliates.

(h)          “Restriction Area”
shall mean and refer to the United States.

(i)          “Restriction Period”
shall mean and refer to the period of time, commencing on Executive’s date of employment and expiring 12 months after,
for any reason whatsoever, the employment relationship between Executive and the Company or any of its Affiliates terminates.

6.2         Covenant Not to Compete.

(a)          During the Restriction Period,
Executive shall not directly or indirectly, own, manage, invest or acquire any economic stake or interest in, or otherwise engage
or participate in any manner whatsoever in any Competitor (whether as a proprietor, partner, shareholder, investor, manager, director,
officer, employee, venturer, representative, agent, broker, independent contractor, consultant, or other participant). Executive,
however, shall not be prohibited from owning a passive investment of less than two percent (2%) of the outstanding shares of capital
stock or bonds of a corporation, which stock or bonds are listed on a national securities exchange or are publicly traded in the
over-the-counter market.

(b)          The parties recognize the possibility
that there might be some limited ways, which the parties do not now contemplate, through which Executive might be able to participate
in a Competitor, and which pose no risk of harm to the interests of the Company or its Affiliates. If, prior to beginning any such
relationship with a Competitor, Executive makes a full disclosure to the Company of the nature of Executive’s proposed participation,
the Company agrees to evaluate whether it or its Affiliates will suffer any risk of harm to it or their respective interests, and
will notify Executive if it has any objection to Executive’s proposed participation; provided, however, that the Company’s
failure to notify Executive shall not be deemed to be an approval of Executive’s proposed participation. The Company’s
determination in this regard shall be final and not subject to review. If Executive fails to make the prior disclosure required
by this Section 6.2(b), it shall be conclusively presumed and Executive shall be deemed to have admitted that his participation
in a Competitor during the Restriction Period will cause harm to the interests of the Company or its Affiliates.

6.3         Covenant Not to Interfere.

(a)          During the Restriction Period,
Executive shall not, directly or indirectly, solicit, induce or influence, or attempt to induce or influence, any Customer to terminate
a relationship which has been formed or that Executive knows is being formed with the Company or any of its Affiliates, or to reduce
the extent of, discourage the development of, or otherwise harm its relationship with the Company or any of its Affiliates, including,
without limitation, to commence or increase its relationship with any Competitor.

    	8

    	 

    

(b)          During the Restriction Period,
Executive shall not, other than during the term of this Agreement consistent with his duties and obligations under Section 2 hereof,
directly or indirectly, recruit, solicit, induce or influence, any Personnel known by Executive to be employed by the Company or
any of its Affiliates to discontinue, reduce the extent of, discourage the development of, or otherwise harm their relationship
or commitment to the Company or its Affiliates, including, without limitation, by employing, seeking to employ or inducing or influencing
a Competitor to employ or seek to employ any Personnel of the Company or any of its Affiliates, or inducing an employee of the
Company or any of its Affiliates to leave employment by the Company or its Affiliate, as the case may be. Any general solicitation
to the public that is not directed at the Company and/or any of its Affiliates shall not constitute a breach of this paragraph,
and the restrictions set forth herein shall not apply to any person (i) who initiates contact with Executive or Executive’s
then current employer in response to a general solicitation to the public, or (ii) who initiates contact with Executive or Executive’s
then current employer in response to any general search conducted by a placement firm which does not expressly target such Personnel.

(c)          During the Restriction Period,
Executive shall not, other than during the term of this Agreement consistent with his duties and obligations under Section 2 hereof,
directly or indirectly, solicit, induce or influence, or attempt to induce or influence, any Business Associate to discontinue,
reduce the extent of, discourage the development of, or otherwise harm its relationship with the Company or any of its Affiliates,
including, without limitation, by inducing a Business Associate to commence, increase the extent of, develop or otherwise enhance
its relationship with any Competitor, or to refuse to do business with the Company or any of its Affiliates.

		6.4	Confidential Information.

(a)          Duty to Maintain Confidentiality.
Executive shall maintain in strict confidence and duly safeguard to the best of his ability any and all Confidential Information.
Executive covenants that Executive will become familiar with and abide by all policies and rules issued by the Company now or in
the future dealing with Confidential Information.

(b)          Covenant Not to Disclose, Use
or Exploit. Executive shall not, directly or indirectly, disclose to anyone or use or otherwise exploit for the benefit of
anyone, other than the Company and its Affiliates, any Confidential Information.

(c)          Confidential Materials.
All Confidential Materials are and shall remain the exclusive property of the Company. No Confidential Materials may be copied
or otherwise reproduced, removed from the premises of the Company, or entrusted to any person or entity (other than the Personnel
entitled to such materials by authorization of the Company) without prior written permission from the Company. Notwithstanding
the foregoing, Executive may copy Confidential Information and remove such Confidential Information from the Company’s premises
to Executive’s residence, in each case, in the ordinary course of business in the discharge of Executive’s duties and
obligations under this Agreement.

    	9

    	 

    

6.5          Company Property. Any and
all writings, improvements, processes, procedures and/or techniques which Executive may make, conceive, discover or develop, either
solely or jointly with any other person or persons, at any time during the term of this Agreement, whether during working hours
or at any other time and whether at request or upon the suggestion of the Company or any Affiliate thereof, which relate to or
are useful in connection with any business now or hereafter carried on or contemplated by the Company or any Affiliate thereof,
including developments or expansions of its present fields of operations, shall be the sole and exclusive property of the Company.
Executive shall make full disclosure to the Company of all such writings, improvements, processes, procedures and techniques, and
shall do everything necessary or desirable to vest the absolute title thereto in the Company. Executive shall not be entitled to
any additional or special compensation or reimbursement regarding any and all such writings, improvements, processes, procedures
and techniques. Notwithstanding anything contained herein to the contrary, nothing herein shall restrict the Executive in the use
of general information, thoughts and processes acquired by Executive prior to the commencement of his employment with the Company
hereunder during his career in the marketing and promotion field.

7.          Discharge for Cause. the
Company may discharge Executive at any time for Cause. For purposes of this Agreement, “Cause” shall mean (a)
indictment for criminal conduct constituting a felony offense, (b) alcohol or drug abuse which impairs Executive’s performance
of his duties hereunder in any material respect, or (c) incompetence, insubordination, willful misconduct, willful violation of
any express direction or any reasonable rule or regulation established by the Board from time to time, after, in each case under
this clause (c) which is capable of curing, written notice is provided to Executive and Executive has failed to cure such acts
or action after a period of fifteen (15) days. In the event that the Company wishes to discharge Executive under clause (c) above,
the Company shall notify Executive in writing of the Company’s intention to discharge Executive and of the time (which shall
be at least 48 hours after such notice) and place when Executive may have a hearing before the Board. Within five (5) business
days following such hearing, the Board shall advise Executive of its determination and, if Executive is to be terminated, of the
date of Executive’s termination. In the event of any termination pursuant to this Section 7, the Company shall have no further
obligations or liabilities hereunder after the date of such discharge.

8.          Consequences Upon Termination.

8.1          Payment of Compensation Owed.
Upon the termination of Executive’s employment and this Agreement for any reason whatsoever, the Company shall promptly pay
to Executive all compensation owed to Executive up until the date of termination.

8.2          Return of Property. Upon
the termination of Executive’s employment and this Agreement for any reason whatsoever, Executive shall promptly return to
the Company all Confidential Materials in his possession or within Executive’s control, all keys, credit cards, business
card files and other property belonging to the Company.

    	10

    	 

    

9.          Remedies.

9.1          Equitable Relief. The parties
acknowledge that the provisions and restrictions of Section 6 of this Agreement are reasonable and necessary for the protection
of the legitimate interests of the Company and Executive. The parties further acknowledge that the provisions and restrictions
of Section 6 of this Agreement are unique, and that any breach or threatened breach of any of these provisions or restrictions
by Executive will provide the Company with no adequate remedy at law, and the result will be irreparable harm to the Company. Therefore,
the parties agree that upon a breach or threatened breach of the provisions or restrictions of Section 6 of this Agreement by Executive,
the Company shall be entitled, in addition to any other remedies which may be available to it, to institute and maintain proceedings
at law or in equity, to recover damages, obtain specific performance or a temporary or permanent injunction, without the necessity
of establishing the likelihood of irreparable injury or proving damages and without being required to post bond or other security.

9.2          Modification of Restrictions;
Full Restriction Period. If the Restriction Period, the Restriction Area or the scope of activity restricted in Article 6 should
be adjudged unreasonable in any proceeding, then the Restriction Period shall be reduced by such number of months, the Restriction
Area shall be reduced by the elimination of such portion thereof or the scope of the restricted activity shall be modified, or
any or all of the foregoing, so that such restrictions may be enforced in such area and for such time as is adjudged to be reasonable.
If Executive violates any of the restrictions contained in Article 6, the Restriction Period shall not run in favor of Executive
from the time of commencement of any such violation until such time as such violation shall be cured by Executive to the reasonable
satisfaction of the Company.

9.3          Arbitration. Except for the
provisions of Sections 9.1 and 9.2 above, any controversy, dispute, or difference arising out of or relative to this Agreement
or the breach thereof shall be determined by arbitration in New York City before three arbitrators. The arbitration shall be governed
by the Federal Arbitration Act and administered by the American Arbitration Association under its Commercial Arbitration Rules,
provided that persons eligible to be selected as arbitrators shall be limited to attorneys-at-law who have practiced law for at
least 15 years as an attorney in New York specializing in either general commercial litigation or general corporate and commercial
matters. A demand for arbitration under this provision shall be made in writing to the other party within sixty (60) days of the
date the party demanding arbitration knew or should have known of the event giving rise to the claim, but in no event more than
two (2) years after the event giving rise to the claim, or the claim shall be forever barred. The parties agree that judgment upon
any award rendered may be entered in any court having jurisdiction thereof as an enforceable judgment or decree.

10.         Consideration for Restrictive
Covenants. Executive acknowledges that the execution of this Agreement and compliance with it by the Company shall constitute
fair and adequate consideration for Executive’s compliance with the restrictive covenants contained in the respective sections
of this Agreement.

11.         Miscellaneous.

11.1          Governing Law. This Agreement,
its interpretation, performance and enforcement, and the rights and remedies of the parties hereto, shall be governed and construed
by the laws of the State of New York applicable to contracts to be performed wholly within New York, without regard to principles
of conflicts of laws and without the aid of any canon, custom or rule of law requiring construction against the drafter.

    	11

    	 

    

11.2          Waiver. A waiver by any
party of any condition or the breach of any term, covenant, representation or warranty contained in this Agreement, whether by
conduct or otherwise, in any one or more instances, shall not be deemed or construed as a further or continuing waiver of any such
condition or the breach of any other term, covenant, representation, or warranty set forth in this Agreement.

11.3          Additional Restrictions.
The restrictions contained in this Agreement are cumulative with, and not in replacement of, any other restrictions to which Executive
may otherwise be subject.

11.4          Entire Agreement. This Agreement
contains the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements
(including the Original Employment Agreement), and contemporaneous understandings, inducements or conditions, express or implied,
written or oral, between the parties with respect to the subject matter hereof. The express terms hereof control and supersede
any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

11.5          Notices. All notices, requests,
claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have
been duly given or made upon receipt) by delivery in person, by courier service, by telecopy or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for
a party as shall be specified in a notice given in accordance with this Section 11.5):

(a)if to the Company:

‘mktg, inc.’

75 Ninth Avenue

New York, New York 10011

Telecopy: (212) 660-3878

Attention: Chief Financial Officer

 

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

 

Alston & Bird LLP

90 Park Avenue

New York, NY 10016

Attn: Zev M. Bomrind, Esq.

Telecopy: (212) 922-3880

 

(b)if to Executive:

 

Charlie Horsey

11 Edgewood Rd.

Madison, New Jersey 07940

    	12

    	 

    

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

 

Golenbock Eiseman Assor Bell & Peskoe LLP

437 Madison Ave., 40th Floor

New York, NY 10022

Attn: Lawrence R. Haut, Esq.

Telecopy: (212) 754-0330

 

11.6          Headings. The descriptive
headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

11.7          Severability. If any term
or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other
terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance
of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner
in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

11.8          Counterparts. This Agreement
may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

11.9          Amendment or Termination.
No agreement shall be effective to change, modify, waive, release, amend, terminate, discharge or effect an abandonment of this
Agreement, in whole or in part, unless such agreement is in writing, refers expressly to this Agreement and is signed by the party
against whom enforcement of the change, modification, waiver, release, amendment, termination, discharge or effectuation of the
abandonment is sought.

11.10       Indemnification.

(a)            
The Company agrees that if the Executive is made a party, or is threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (“Proceeding”), by reason of the fact that he is or
was a director, officer or employee of the Company or any of its Affiliates or is or was serving at the request of the Company
as a director, officer, member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
including service with respect to employee benefit plans, whether or not the basis of such Proceeding is the Executive’s
alleged action in an official capacity while serving as a director, officer, member, employee or agent, the Executive shall be
indemnified and held harmless by the Company to the fullest extent legally permitted or authorized by the Company’s certificate
of incorporation or bylaws or resolutions of the Company’s Board of Directors or, if greater, by the laws of the State of
Delaware, against all cost, expense, liability and loss (including, without limitation, attorney’s fees, judgments, fines,
excise taxes or other liabilities or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by
the Executive in connection therewith, and such indemnification shall continue as to the Executive even if he has ceased to be
a director, member, employee or agent of the Company or other entity and shall inure to the benefit of the Executive’s heirs,
executors and administrators.

    	13

    	 

    

(b)          
Neither the failure of the Company (including its board of directors, independent legal counsel or stockholders) to have made
a determination prior to the commencement of any proceeding concerning payment of amounts claimed by the Executive under Section
11.10(a) above that indemnification of the Executive is proper because he has met the applicable standard of conduct, nor a determination
by the Company (including its Board of Directors, independent legal counsel or stockholders) that the Executive has not met such
applicable standard of conduct, shall create a presumption that the Executive has not met the applicable standard of conduct. 

(c)           The Company agrees to continue and
maintain directors’ and officers’ liability insurance policy covering the Executive to the extent the Company provides
such coverage for its other executive officers and directors, as applicable.

11.11      Code Section 409A.

(a)          This Agreement shall be interpreted
and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either
exempt from or compliant with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief
under Section 409A of the Code). Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted
or guaranteed. Neither the Company nor its directors, officers, employees or advisers shall be held liable for any taxes, interest,
penalties or other monetary amounts owed by Executive as a result of the application of Section 409A of the Code.

(b)          Notwithstanding anything in this
Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation”
for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or
distributable hereunder, or a different form of payment of such Non-Exempt Deferred Compensation would be effected, by reason of
Executive’s termination of employment, such Non-Exempt Deferred Compensation will not be payable or distributable to Executive,
and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise
to such termination of employment meet any description or definition of “separation from service” in Section 409A of
the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition).
This provision does not affect the dollar amount or prohibit the vesting of any Non-Exempt Deferred Compensation upon a
termination of employment. If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, or the
application of a different form of payment, such payment or distribution shall be made at the time and in the form that would have
applied absent the non-409A-conforming event.

    	14

    	 

    

(c)          Notwithstanding anything in this
Agreement to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable
or distributable under this Agreement by reason of Executive’s separation from service during a period in which he is a Specified
Employee (as defined below), then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section
1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):
(i) the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately
following Executive’s separation from service will be accumulated through and paid or provided on the first day of the seventh
month following Executive’s separation from service (or, if Executive dies during such period, within 30 days after Executive’s
death) (in either case, the “Required Delay Period”); and (ii) the normal payment or distribution schedule for
any remaining payments or distributions will resume at the end of the Required Delay Period. For purposes of this Agreement, the
term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder.

(d)          Each payment of termination benefits
under Section 5.2(a) of this Agreement shall be considered a separate payment, as described in Treas. Reg. Section 1.409A-2(b)(2),
for purposes of Section 409A of the Code.

(e)          If Executive is entitled to be paid
or reimbursed for any taxable expenses under Sections 4.4 or 4.5 hereof, and such payments or reimbursements are includible in
Executive’s federal gross taxable income, the amount of such expenses reimbursable in any one calendar year shall not affect
the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December
31 of the year after the year in which the expense was incurred. No right of Executive to reimbursement of expenses under Sections
4.4 or 4.5 hereof shall be subject to liquidation or exchange for another benefit.

(f)          The
Company shall have the sole authority to make any accelerated distribution permissible under Treas. Reg. Section 1.409A-3(j)(4)
to Executive of deferred amounts, provided that such distribution meets the requirements of Treas. Reg. Section 1.409A-3(j)(4).

    	15

    	 

    

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

	 	 	 
	 	‘mktg, inc.’
	 	 	 
	 	By  	/s/ Paul Trager
	 	Paul Trager, Chief Financial Officer
	 	 	 
	 	/s/ Charlie Horsey
	 	Charlie Horsey

    	16

    	 

    

Exhibit A-1

Initial Option Grant

    	17

    	 

    

Exhibit A-2

Liquidity Option Grant

    	18

    	 

    

Schedule A

 

EBITDA BONUS ILLUSTRATION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]