Document:

Exhibit 10.7

 

GlyEco-NFS Patent Security Agreement

 

PATENT
SECURITY AGREEMENT

(Short-Form)

 

This
Patent Security Agreement (“Agreement”) is between GlyEco, Inc. (“Grantor”), a corporation organized
and existing under the laws of the State of Nevada, and having a usual place of business at 1620 1st Ave. S, Nitro, WV 25143 and
a mailing address at P.O. Box 387, Institute, WV 25112, and NFS Leasing, Inc. (“Secured Party”), a corporation
organized and existing under the laws of the Commonwealth of Massachusetts, and having a usual place of business at 900 Cummings
Center, Suite 226-U, Beverly, Massachusetts 01915.

 

WHEREAS,
the Grantor is the owner of certain United States patents and patent applications as listed on the attached Schedule A (as may
be amended from time to time) (collectively “Patents”).

 

WHEREAS,
the Secured Party and the Grantor have entered into a certain Security Agreement dated March 31, 2017 and amended by an Amended
and Restated Security Agreement dated February 7, 2018 and by an Amended and Restated Security Agreement dated May 23, 2019 (“Amended
Security Agreement”), granting the Secured Party a first priority security interest in said Patents as collateral to secure
performance of the Grantor’s obligations under a certain Master Equipment Lease dated March 31, 2017 and amended by an Amendment
No. 1 dated March 31, 2017 and by an Amendment No. 2 dated May 23, 2019 and the Equipment Lease Schedules thereto (collectively,
as amended the “Lease Agreement”).

 

WHEREAS,
by this Agreement, the Grantor and the Secured Party confirm and seek to make a record of the grant of a security interest in
said Patents.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor hereby
grants to the Secured Party a lien and continuing security interest in all of the Grantor’s right, title, and interest in, to,
and under said Patents listed on Schedule A.

 

The
Grantor hereby acknowledges and affirms that the rights and remedies of the Secured Party with respect to the liens and security
interests in said Patents made and granted hereby are more fully set forth in the Amended Security Agreement and Lease Agreement,
the terms and provisions of which are incorporated by reference herein as if fully set forth herein. Unless defined otherwise
herein, all terms should be given the same meaning as defined and used in the incorporated agreements. To be free from doubt,
this Agreement shall terminate if, as, and when the Amended Security Agreement terminates and Secured Party, at Grantor’s
request and expense, shall take such actions and execute and deliver, and, if and as applicable, file such documents as Grantor
may reasonably request to terminate all liens created by this Agreement and terminate this Agreement.

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed under seal by its authorized officers, as of the last
date written below.

 

    Page 1 of 3

     

    

 

GlyEco-NFS Patent Security Agreement

 

GlyEco,
Inc.

 

By:
____________________________________________________

 

Printed
Name: ___________________________ Title: ____________________

                       (Duly
Authorized)

 

Dated:
_____________________

 

 

 

 

 

NFS
Leasing, Inc.

 

By:
____________________________________________________

Mark
Blaisdell – Chief Financial Officer

(Duly
Authorized)

 

Dated:
_____________________

 

    Page 2 of 3

     

    

 

GlyEco-NFS Patent Security Agreement

 

Schedule
A

to

Patent
Security Agreement

 

U.S.
Patent Assets

 

	Application No.	 	Patent No.	 	Title
	13/843,105	 	9,145,345	 	METHOD AND APPARATUS FOR PROCESSING GLYCOL
	PCT/US2013/056747	 	 	 	METHOD AND APPARATUS FOR PROCESSING GLYCOL

 

 

Page
3 of 3Exhibit 10.8

 

GlyEco-NFS Conditional
Patent Assignment

 

CONDITIONAL
PATENT ASSIGNMENT

 

This
Conditional Patent Assignment (“Assignment”) is between GlyEco, Inc. (“Assignor”), a corporation
organized and existing under the laws of the State of Nevada, and having a usual place of business at 1620 1st Ave. S, Nitro,
WV 25143 and a mailing address at P.O. Box 387, Institute, WV 25112, and NFS Leasing, Inc. (“Secured Party”),
a corporation organized and existing under the laws of the Commonwealth of Massachusetts, and having a usual place of business
at 900 Cummings Center, Suite 226-U, Beverly, Massachusetts 01915.

 

WHEREAS,
the Assignor is the owner of the entire right, title, and interest in certain intellectual property listed on Schedule A attached
hereto (as may be amended from time to time) (collectively “Patents”), subject to any prior recorded liens.

 

WHEREAS,
the Secured Party and the Assignor have entered into a certain Security Agreement dated March 31, 2017 and amended by an Amended
and Restated Security Agreement dated February 7, 2018 and by an Amended and Restated Security Agreement dated May 23, 2019 (“Amended
Security Agreement”), granting the Secured Party a first priority security interest in said Patents as collateral to secure
performance of the Grantor’s obligations under a certain Master Equipment Lease dated March 31, 2017 and amended by an Amendment
No. 1 dated March 31, 2017 and by an Amendment No. 2 dated May 23, 2019 and the Equipment Lease Schedules thereto.

 

WHEREAS,
the Secured Party desires to conditionally acquire an interest in said Patents in accordance with terms of the Amended Security
Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the Assignor has sold, assigned and
transferred, and by these presents does hereby sell, assign and transfer the Assignor’s entire right, title and interest in and
to the Patents and all reissues and extensions thereof, including all claims, if any, which may have arisen for infringement of
the patents prior to the date of this Assignment, all said rights to be held and enjoyed by the Secured Party for its own use
and for the use of its successors, assigns or other legal representatives, to the full end of the term for which the Patents have
been or will be granted, extended or reissued, as fully and entirely as the same would have been held and enjoyed by the Assignor
if this Assignment and sale had not been made.

 

The
Assignor further agrees that Assignor will, without demanding any further consideration therefor, at the request but at the expense
of the Secured Party, do all lawful and just acts, including the execution and acknowledgment of instruments, that may be or become
necessary for obtaining, sustaining, or reissuing the Patents, and for maintaining and perfecting Secured Party’s right to the
Patents.

 

AND,
the Assignor does hereby authorize and request each Patent Office and the Commissioner of Patents of the United States to issue
such Letters Patent as shall be granted upon said invention to the Secured Party, its successors, assigns, and legal representatives.

 

AND,
this Conditional Patent Assignment shall terminate if, as, and when the Amended Security Agreement terminates and Secured Party,
at Assignor’s request and expense, shall take such actions and execute and deliver, and, if and as applicable, file such
documents as Assignor may reasonably request to reassign the Patents covered by this Conditional Patent Assignment and terminate
this Conditional Patent Assignment.

 

IN
WITNESS WHEREOF, the Assignor has caused this Assignment to be duly executed under seal, as of the date set forth below.

 

    Page 1 of 3

     

    

 

GlyEco-NFS Conditional
Patent Assignment

 

GlyEco,
Inc.

 

By:
____________________________________________________

 

Printed
Name: ___________________________           Title: ____________________

                   (Duly
Authorized)

 

Dated:
_____________________

 

    Page 2 of 3

     

    

 

GlyEco-NFS Conditional
Patent Assignment

 

Schedule
A

to

Conditional
Patent Assignment

 

Listed
U.S. Patent Assets

 

	Application No.	 	Patent No.	 	Title
	13/843,105	 	9,145,345	 	METHOD AND APPARATUS FOR PROCESSING GLYCOL
	PCT/US2013/056747	 	 	 	METHOD AND APPARATUS FOR PROCESSING GLYCOL

 

 

Page  3 of 3VERUS
INTERNATIONAL, INC.

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of this 1st day of June 2019 by and between
Verus International, Inc., a Delaware corporation with a principal place of business in Gaithersburg, MD (the “Company”),
and Chris Cutchens, an individual (the “Executive”).

 

WHEREAS,
the Company and the Executive wish to set forth the terms and conditions for the employment of the Executive by the Company;

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration
the receipt of which is hereby acknowledged, the parties mutually agree as follows:

 

Section
1. Term of Employment.

 

	 	(a)
    	General.
    The Company will employ Executive, and Executive will be employed by the Company, for the period set forth in Section 1(b),
    in the positions set forth in Section 2, and upon the other terms and conditions herein provided commencing on June 1, 2019
    (the “Effective Date”).
	 	 	 
	 	(b)
    	Term.
    The Agreement shall become effective on the Effective Date and shall continue unless earlier terminated as provided in Section
    6 (the “Term”). The Executive’s employment with the Company shall be “at will,” meaning that
    the Executive’s employment may be terminated by the Company or the Executive at any time and for any reason provided
    that Executive may not voluntarily terminate his employment upon less than thirty (30) days prior written notice delivered
    to the Company, or upon such shorter notices as Company and Executive agree.
	 	 	 
	 	(c)
    	Location.
    During the Term, the Executive’s principal place of employment shall be in Gaithersburg, MD. The Executive acknowledges
    that Executive’s duties and responsibilities shall require the Executive to travel on business to the extent reasonably
    necessary to fully perform Executive’s duties and responsibilities hereunder.

 

Section
2. Duties and Exclusivity.

 

	 	(a)
    	During
    the Term, the Executive (i) shall serve as Chief Financial Officer of the Company, with responsibilities, duties and authority
    customary for such position, subject to direction by the Chief Executive Officer of the Company, (ii) shall report directly
    to the Chief Executive Officer; (iii) shall devote all the Executive’s working time and efforts to the business and
    affairs of the Company and its subsidiaries; and (iv) agrees to observe and comply with the Company’s rules and policies
    as adopted by the Company from time to time. The Executive’s duties, responsibilities and authority may include services
    for one or more subsidiaries of the Company.
	 	 	 
	 	(b)
    	Notwithstanding
    anything to the contrary in Section 2(a) above, the Executive may (i) serve as a director, trustee or officer or otherwise
    participate in not-for-profit educational, welfare, social, religious and civic organizations. During the Term, Executive
    shall not accept any other employment or consultancy or serve on the board of directors or similar body of any entity unless
    such position is approved by the Chief Executive Officer.
	 	 	 
	 	(c)	 Exclusivity.
    The Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and
    the Company and the performance by the Executive of the Executive’s duties hereunder do not and shall not constitute
    a breach of, conflict with, or otherwise contravene or cause a default under, the terms of any other agreement or policy to
    which the Executive is a party or otherwise bound or any judgment, order or decree to which the Executive is subject; (ii)
    that the Executive has no information (including, without limitation, confidential information and trade secrets) relating
    to any other Person which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his
    duties hereunder; (iii) the Executive is not bound by any agreement with any previous employer or other party to refrain from
    (A) competing with the business of, or (B) soliciting the customers of, that employer or party, in each case, which would
    be violated by the Executive’s employment with the Company; and (iv) the Executive understands the Company will rely
    upon the accuracy and truth of the representations and warranties of the Executive set forth herein and the Executive consents
    to such reliance.

 

    	 	 	 

    	 

    

 

	 	(d)
    	Deemed
    Resignation. Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned
    from all offices, if any, then held with the Company or any of its subsidiaries, and, at the Company’s request, Executive
    shall execute such documents as are necessary or desirable to effectuate such resignations.

 

Section
3. Compensation.

 

	 	(a)
    	Salary.
    In consideration of all of the services rendered by the Executive under the terms of this Agreement, the Company shall pay
    to the Executive a base salary at the annualized rate of Seventy-Five Thousand Dollars ($75,000.00), less payroll deductions
    and all required withholdings. The Base Salary shall increase to One Hundred and Twenty-Five Thousand Dollars ($150,000.00),
    less payroll deductions and all required withholdings, the first payroll subsequent to the Company completing a capital raise
    in excess of Three Million Dollars ($3,0000,000). Executive’s Base Salary shall be subject to annual review and upward
    adjustment only by the Chief Executive Officer of the Company, beginning on November 1, 2020. The Base Salary shall be paid
    in accordance with the customary payroll practices of the Company in effect. The Executive’s salary, as adjusted from
    time to time under this Section 3(a), is referred to as (“Base Salary”).
	 	 	 
	 	(b)
    	Annual
    Bonus. With respect to each Company fiscal year that ends during the Term, commencing with fiscal year 2019, the Executive
    shall be eligible to receive an annual performance-based cash bonus (the “Annual Bonus”) which shall be payable
    based upon the attainment of individual and/or Company performance goals established by the Chief Executive Officer. The target
    amount of such Annual Bonus shall equal 50% of Executive’s Base Salary in the year to which the Annual Bonus relates,
    provided that the actual amount of the Annual Bonus may be greater or less than such target amount (the “Target
    Bonus”). Each Annual Bonus, if any, for a fiscal year shall be payable, less payroll deductions and all required withholdings,
    no later than the fifteenth day of the second month following the end of such fiscal year.
	 	 	 
	 	(c)	Reimbursement
of Expenses. The Company will promptly reimburse Executive for all reasonable out-of-pocket business expenses that are incurred
by Executive in furtherance of the Company’s business in accordance with the Company’s policies with respect thereto
as in effect. 
	 	 	 
	 	(d)	Benefits.
In addition to any benefits provided by this Agreement, Executive shall be entitled to participate generally in all employee benefit,
welfare and other plans, practices, policies and programs and fringe benefits maintained by the Company on a basis no less favorable
than those provided to other similarly-situated executives of the Company. The Executive understands that, except when prohibited
by applicable law, the Company’s benefit plans and fringe benefits may be amended, enlarged, diminished or terminated prospectively
by the Company from time to time, in its sole discretion, and that such shall not be deemed to be a breach of this Agreement.
In the event that the Company does not have group health plan coverage in place for medical, dental and vision coverage, the Company
shall reimburse the employee for out-of-pocket costs, up to a maximum of $2,000 per month, to obtain equivalent coverage for employee
and dependents until the Company is able to provide these benefits. 
	 	 	 
	 	(e)
    	Paid
    Time Off. Executive shall be entitled to accrue ten (10) days of paid time off during each calendar year in accordance
    with and subject to the terms of the Company’s vacation policy applicable to other executive officers of the Company,
    as it may be amended prospectively from time to time. Any accrued paid time off that is not used in the calendar year in which
    it is earned will be eligible to be carried forward to, or otherwise used in, any subsequent calendar year, provided that
    Executive shall not be allowed to accrue paid time off in excess of ten (10) days at any one time.

 

    	 	 	 

    	 

    

 

	 	(f)	Holidays.
    During the Employment Period, Executive shall be entitled to holidays consistent with the Company’s current policy,
    which may be amended from time to time.
	 	 	 
	 	(g)
    	Relocation.
    The Company will promptly reimburse Executive for all reasonable expenses that are incurred by Executive to relocate Executive
    and dependents to Gaithersburg, MD, in accordance with the Company’s policies with respect thereto as in effect. 

 

Section
4. Equity Awards.

 

	 	(a)
    	Restricted
    Stock Grant. In addition to Base Salary, as part of the Executive’s overall compensation, the Executive shall receive
    a restricted stock award of 30,000,000 shares of the Company’s common stock (the “Restricted Shares”). For
    so long as the Executive remains continuously employed by the Company, the Restricted Shares shall vest as follows: 25% of
    the Shares shall vest at the 6 months, 1 year, 2 year, and 3 year anniversaries of the Agreement. In the event of a Change
    in Control while the Executive is employed by the Company, any unvested portion of the Restricted Shares shall vest immediately
    upon the Change in Control. The Restricted Shares grant shall be evidenced in writing by, and subject to the terms and conditions
    of a restricted stock agreement, which agreement shall expire ten (10) years from the date of grant except as otherwise provided
    herein or in such restricted stock agreement.
	 	 	 
	 	(b)	Section
83(b) Election. The Executive hereby acknowledges that the Executive has been informed that, with respect to the Restricted
Stock, the Executive may file an election with the Internal Revenue Service, within 30 days of the Date of the Grant, electing
pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, (the Code) to be taxed currently on any difference
between the purchase price of the Restricted Stock and their fair market value on the date of purchase. Absent such an election,
taxable income will be measured and recognized by the Executive at the time or times at which the forfeiture restrictions on the
Restricted Stock lapse. The Executive is strongly encouraged to seek the advice of his own tax consultants in connection with
the issuance of the Restricted Stock and the advisability of filing of the election under Section 83(b) of the Code. THE EXECUTIVE
ACKNOWLEDGES THAT IT IS NOT THE COMPANYS, BUT RATHER THE EXECUTIVES SOLE RESPONSIBILITY TO FILE THE ELECTION UNDER SECTION 83(b)
TIMELY.
	 	 	 
	 	(c)
    	Sale
    of Shares. Executive agrees that he will not loan or pledge any securities of the Company owned by him or which he may
    accrue in the future through restricted stock, option or other equity awards as collateral for any indebtedness.

 

Section
5. Compliance with Company Policy.

 

During
the Term, the Executive shall observe all Company rules, regulations, policies, procedures and practices in effect from time to
time, including, without limitation, such policies and procedures as are contained in the Company policy and procedures manual,
as may be amended or superseded from time to time.

 

Section
6. Termination of Employment.

 

Executive’s
employment with the Company may be terminated during the Term of this Agreement for any of the following reasons:

 

	 	(a)
    	By
    The Company For Cause. At any time during the Term, the Company may terminate Executive’s employment hereunder for
    Cause. For purposes of this Agreement, “Cause” shall mean the occurrence of any of the following events, as determined
    by the Board or a committee designated by the Board, in its sole discretion: (i) conduct by Executive constituting a material
    act of willful misconduct in connection with the performance of his duties, including, without limitation, misappropriation
    of funds or property of the Company or any of its affiliates other than the occasional, customary and de minimis use
    of Company property for personal purposes; (ii) the commission by Executive of a felony or any misdemeanor involving moral
    turpitude, deceit, dishonesty or fraud, or conduct by Executive that would reasonably be expected to result in material injury
    to the Company if he were retained in his position; (iii) continued, willful and deliberate non-performance by Executive of
    his duties hereunder (other than by reason of Executive’s physical or mental illness, incapacity or disability) which
    has continued for more than thirty (30) days following written notice of such non-performance from the Company; (iv) a material
    breach by Executive of any of the provisions contained in Paragraph 7 of this Agreement; (v) a material violation by Executive
    of the Company’s employment policies which has continued for more than thirty (30) days following written notice of
    such violation from the Company; or (vi) willful failure to cooperate with a bona fide internal investigation or an investigation
    by regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction
    or failure to preserve documents or other materials known to be relevant to such investigation or the willful inducement of
    others to fail to cooperate or to produce documents or other materials.

 

    	 	 	 

    	 

    

 

	 	(b)
    	By
    The Company for Without Cause. At any time during the Term, the Company may terminate Executive’s employment hereunder
    without Cause.
	 	 	 
	 	(c)	By
The Executive. At any time during the Term, Executive may terminate his employment hereunder for any reason.
	 	 	 
	 	(d)
    	Right
    to Severance. In the event the Company terminates Executive’s employment Without Cause and if Executive executes
    and does not revoke during any applicable revocation period a general release of all claims against the Company and its affiliates
    in a form acceptable to the Company (a “Release of Claims”) within a reasonable period of time specified
    by the Company and in compliance with applicable law, following such termination, then in addition to any accrued obligations
    payable under Section 6(d)(i) below, the Company shall:

 

	 	 	i.	Provided
    the Executive has been employed for a minimum of twelve (12) months but less than twenty-four (24) months, pay to the Executive
    six (6) months of the Executive’s current Base Salary, less payroll deductions and all required withholdings, paid over
    time in accordance with the Company’s payroll practices then in effect; 
	 	 	 	 
	 	 	ii.	Provided
the Executive has been employed for a minimum of twenty-four (24) months, pay to the Executive twelve (12) months of the Executive’s
current Base Salary, less payroll deductions and all required withholdings, paid over time in accordance with the Company’s
payroll practices then in effect; and
	 	 	 	 
	 	 	iii.
    	The
    Company shall notify Executive of any right to continue group health plan coverage sponsored by the Company immediately prior
    to Executive’s date of termination pursuant to the provisions of applicable law including, but not limited to, the provisions
    of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). If Executive elects
    to receive such continued healthcare coverage, the Company shall directly pay, or reimburse Executive for, the premium for
    Executive and Executive’ s covered dependents, less the amount of Executive’s monthly premium contributions for
    such coverage prior to termination, for the period commencing on the first day of the first full calendar month following
    the date the Release of Claims becomes effective and irrevocable through the earlier of (i) the last day of the six (6) or
    twelve (12) full calendar months (such period consistent with the severance payment period set forth in Section 6(d)(i) and
    6(d)(ii) above) following the date the Release of Claims becomes effective and irrevocable (ii) the date Executive and Executive’s
    covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s). Executive shall
    notify the Company immediately if Executive becomes covered by a group health plan of a subsequent employer. After the Company
    ceases to pay premiums pursuant to this subsection, Executive may, if eligible, elect to continue healthcare coverage at Executive’s
    expense in accordance the provisions of COBRA or other applicable law.

 

For
purposes of this Section 6(e), Executive’s termination of employment at the end of the Term following an earlier notice
of nonrenewal by the Company shall be treated as a termination of the Executive’s employment by the Company without Cause
as of the last day of the Term.

 

    	 	 	 

    	 

    

 

	 	(e)
    	Upon
    a termination of the Executive’s employment for any reason, (i) the Executive shall be entitled to receive: (A) any
    portion of the Executive’s Base Salary through the date of employment termination not theretofore paid, (B) any expenses
    owed to the Executive under Section 3(c) above, (C) any accrued but unused vacation pay owed to the Executive pursuant to
    Section 3(e) above, any pro-rated and unpaid Annual Bonus pursuant to Section 3(b) above, and (E) any amount arising from
    the Executive’s participation in, or benefits under, any employee benefit plans, programs or arrangements under Section
    3(d) above, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs
    or arrangements.
	 	 	 
	 	(f)
    	The
    payments and benefits described in this Section 6 shall be the only payments and benefits payable in the event of the Executive’s
    termination of employment for any reason.

 

Section
7. Competitive Activity; Confidentiality; Nonsolicitation.

 

(a)
Acknowledgements and Agreements. Executive hereby acknowledges and agrees that in the performance of Executive’s
duties to the Company during the Employment Period, Executive will be brought into frequent contact with existing and potential
customers of the Company throughout the world. Executive also agrees that trade secrets and confidential information of the Company,
more fully described in subparagraph 7(e)(i), gained by Executive during Executive’s association with the Company, have
been developed by the Company through substantial expenditures of time, effort and money and constitute valuable and unique property
of the Company. Executive further understands and agrees that the foregoing makes it necessary for the protection of the Company’s
Business that Executive not compete with the Company during his employment with the Company, and not compete with the Company
for a defined period thereafter, as further provided in the following subparagraphs.

 

(b)
Covenants.

 

(i)
Covenants During Employment. While employed by the Company, Executive will not compete with the Company anywhere in the
world. In accordance with this restriction, but without limiting its terms, while employed by the Company, Executive will not:

 

	 	 	(A)	enter
    into or engage in any business which competes with the Company’s Business;
	 	 	 	 
	 	 	(B)	solicit
    customers, business, patronage or orders for, or sell, any products or services in competition with, or for any business that
    competes with, the Company’s Business;
	 	 	 	 
	 	 	(C)
    	divert,
    entice or otherwise take away any customers, business, patronage or orders of the Company or attempt to do so; or
	 	 	 	 
	 	 	(D)
    	promote
    or assist, financially or otherwise, any person, firm, association, partnership, corporation or other entity engaged in any
    business which competes with the Company’s Business.

 

(ii)
Covenants Following Termination. For two (2) years following the termination of Executive’s employment, Executive
shall not:

 

	 	 	(A)	enter
    into or engage in any business which competes with the Company’s Business;
	 	 	 	 
	 	 	(B)	solicit
    customers, business, patronage or orders for, or sell, any products and services in competition with, or for any business,
    wherever located, that competes with, the Company’s Business;

 

    	 	 	 

    	 

    

 

	 	 	(C)
    	divert,
    entice or otherwise take away any customers, business, patronage or orders of the Company, or attempt to do so; or
	 	 	 	 
	 	 	(D)
    	promote
    or assist, financially or otherwise, any person, firm, association, partnership, corporation or other entity engaged in any
    business which competes with the Company’s Business.
	 	 	 	 
	 	 	 	The
    time period set forth in subparagraph 7(b)(ii) may be extended to such longer period as determined by the Company in its sole
    discretion, provided that if the Company extends the applicable period, the Company shall make payment to Executive of the
    Base Salary during any such extended period.

 

(iii)
Indirect Competition. For the purposes of subparagraphs 7(b)(i) and (ii) inclusive, but without limitation thereof, Executive
will be in violation thereof if Executive engages in any or all of the activities set forth therein directly as an individual
on Executive’s own account, or indirectly as a partner, joint venturer, employee, agent, salesperson, consultant, officer
and/or director of any firm, association, partnership, corporation or other entity, or as a stockholder of any corporation in
which Executive or Executive’s spouse, child or parent owns, directly or indirectly, individually or in the aggregate, more
than one percent (1%) of the outstanding stock.

 

(iv)
If it is judicially determined that Executive has violated this subparagraph 7(b) and the Company obtains an injunction or other
equitable relief, then the period applicable to each obligation that Executive has been determined to have violated will be automatically
extended by a period of time equal in length to the period during which such violation occurred.

 

(c)
The Company. For purposes of this paragraph 7, the Company shall include any and all direct and indirect subsidiary, parent,
affiliated, or related companies of the Company for which Executive worked or had responsibility at the time of termination of
his employment and at any time during the two (2) year period prior to such termination.

 

(d)
Non-Solicitation; Non-Association. Executive will not directly or indirectly at any time during the period of Executive’s
employment, or for five (5) years thereafter, attempt to disrupt, damage, impair or interfere with the Company’s Business
by raiding any of the Company’s employees, soliciting any of them to resign from their employment by the Company or associating
with any of them for the express purpose of encouraging them to resign from their employment by the Company, or by disrupting
the relationship between the Company and any of its consultants, agents or representatives.

 

Executive
acknowledges that this covenant is necessary to enable the Company to maintain a stable workforce and remain in business.

 

(e)
Further Covenants.

 

(i)
Executive will keep in strict confidence, and will not, directly or indirectly, at any time, during or after Executive’s
employment with the Company, disclose, furnish, disseminate, make available or, except in the course of performing Executive’s
duties of employment, use any trade secrets or confidential business and technical information of the Company or its customers
or vendors, without limitation as to when or how Executive may have acquired such information. Such confidential information shall
include, without limitation, the Company’s unique selling, manufacturing and servicing methods and business techniques,
training, service and business manuals, promotional materials, training courses and other training and instructional materials,
vendor and product information, customer and prospective customer lists, other customer and prospective customer information and
other business information. Executive specifically acknowledges that all such confidential information, whether reduced to writing,
maintained on any form of electronic media, or maintained in the mind or memory of Executive and whether compiled by the Company,
and/or Executive, derives independent economic value from not being readily known to or ascertainable by proper means by others
who can obtain economic value from its disclosure or use, that reasonable efforts have been made by the Company to maintain the
secrecy of such information, that such information is the sole property of the Company and that any retention and use of such
information by Executive during Executive’s employment with the Company (except in the course of performing Executive’s
duties and obligations to the Company) or after the termination of Executive’s employment shall constitute a misappropriation
of the Company’s trade secrets.

 

    	 	 	 

    	 

    

 

(ii)
Executive agrees that upon termination of Executive’s employment with the Company, for any reason, Executive shall return
to the Company, in good condition, all property of the Company, including without limitation, the originals and all copies of
any materials which contain, reflect, summarize, describe, analyze or refer or relate to any items of information listed in subparagraph
7(e)(i) of this Agreement.

 

(f)
Discoveries and Inventions; Work Made for Hire.

 

(i)
Executive agrees that upon conception and/or development of any idea, discovery, invention, improvement, software, writing or
other material or design that: (A) relates to the business of the Company, or (B) relates to the Company’s actual or demonstrably
anticipated research or development, or (C) results from any work performed by Executive for the Company, Executive will assign
to the Company the entire right, title and interest in and to any such idea, discovery, invention, improvement, software, writing
or other material or design. Executive has no obligation to assign any idea, discovery, invention, improvement, software, writing
or other material or design that Executive conceives and/or develops entirely on Executive’s own time without using the
Company’s equipment, supplies, facilities, or trade secret information unless the idea, discovery, invention, improvement,
software, writing or other material or design either: (x) relates to the business of the Company, or (y) relates to the Company’s
actual or demonstrably anticipated research or development, or (z) results from any work performed by Executive for the Company.
Executive agrees that any idea, discovery, invention, improvement, software, writing or other material or design that relates
to the business of the Company or relates to the Company’s actual or demonstrably anticipated research or development which
is conceived or suggested by Executive, either solely or jointly with others, within one (1) year following termination of Executive’s
employment under this Agreement or any successor agreements shall be presumed to have been so made, conceived or suggested in
the course of such employment with the use of the Company’s equipment, supplies, facilities, and/or trade secrets.

 

(ii)
In order to determine the rights of Executive and the Company in any idea, discovery, invention, improvement, software, writing
or other material, and to insure the protection of the same, Executive agrees that during Executive’s employment, and, to
the extent related to the Company’s Business, for one (1) year after termination of Executive’s employment under this
Agreement or any successor agreement, Executive will disclose immediately and fully to the Company any idea, discovery, invention,
improvement, software, writing or other material or design conceived, made or developed by Executive solely or jointly with others.
The Company agrees to keep any such disclosures confidential. Executive also agrees during Executive’s employment, and,
to the extent related to the Company’s Business, for one (1) year after termination of Executive’s employment under
this Agreement or any successor agreement, to record descriptions of all work in the manner directed by the Company and agrees
that all such records and copies, samples and experimental materials will be the exclusive property of the Company. Executive
agrees that at the request of and without charge to the Company, but at the Company’s expense, Executive will execute a
written assignment of the idea, discovery, invention, improvement, software, writing or other material or design to the Company
and will assign to the Company any application for letters patent or for trademark registration made thereon, and to any common-law
or statutory copyright therein; and that Executive will do whatever may be necessary or desirable to enable the Company to secure
any patent, trademark, copyright, or other property right therein in the United States and in any foreign country, and any division,
renewal, continuation, or continuation in part thereof, or for any reissue of any patent issued thereon. In the event the Company
is unable, after reasonable effort, and in any event after ten business days, to secure Executive’s signature on a written
assignment to the Company of any application for letters patent or to any common-law or statutory copyright or other property
right therein, whether because of Executive’s physical or mental incapacity or for any other reason whatsoever, Executive
irrevocably designates and appoints the Corporate Secretary of the Company as Executive’s attorney-in-fact to act on Executive’s
behalf to execute and file any such application and to do all other lawfully permitted acts to further the prosecution and issuance
of such letters patent, copyright or trademark.

 

    	 	 	 

    	 

    

 

(iii)
Executive acknowledges that, to the extent permitted by law, all work papers, reports, documentation, drawings, photographs, negatives,
tapes and masters therefor, prototypes and other materials (hereinafter, “items”), including without limitation, any
and all such items generated and maintained on any form of electronic media, generated by Executive during Executive’s employment
with the Company shall be considered a “work made for hire” and that ownership of any and all copyrights in any and
all such items shall belong to the Company. The item will recognize the Company as the copyright owner, will contain all proper
copyright notices, e.g., “(creation date) Verus International, Inc., All Rights Reserved,” and will be in condition
to be registered or otherwise placed in compliance with registration or other statutory requirements throughout the world.

 

(g)
Confidentiality Agreements. Executive agrees that Executive shall not disclose to the Company or induce the Company to
use any secret or confidential information belonging to Executive’s former employers. Except as indicated, Executive warrants
that Executive is not bound by the terms of a confidentiality agreement or other agreement with a third party that would preclude
or limit Executive’s right to work for the Company and/or to disclose to the Company any ideas, inventions, discoveries,
improvements or designs or other information that may be conceived during employment with the Company. Executive agrees to provide
the Company with a copy of any and all agreements with a third party that preclude or limit Executive’s right to make disclosures
or to engage in any other activities contemplated by Executive’s employment with the Company.

 

(h)
Relief. Executive acknowledges and agrees that the remedy at law available to the Company for breach of any of Executive’s
obligations under this Agreement would be inadequate. Executive therefore agrees that, in addition to any other rights or remedies
that the Company may have at law or in equity, temporary and permanent injunctive relief may be granted in any proceeding which
may be brought to enforce any provision contained in subparagraphs 7(b), 7(d), 7(e), 7(f) and 7(g) inclusive, of this Agreement,
without the necessity of proof of actual damage.

 

(i)
Reasonableness. Executive acknowledges that Executive’s obligations under this paragraph 7 are reasonable in the
context of the nature of the Company’s Business and the competitive injuries likely to be sustained by the Company if Executive
were to violate such obligations. Executive further acknowledges that this Agreement is made in consideration of, and is adequately
supported by the agreement of the Company to perform its obligations under this Agreement and by other consideration, which Executive
acknowledges constitutes good, valuable and sufficient consideration.

 

Section
8. Survival of Obligations.

 

The
obligations of the Executive as set forth in Section 4, Section 6, Section 7, and Sections 9 through 13 below shall survive the
term of this Agreement and the termination of Executive’s employment hereunder regardless of the reason(s) therefor.

 

Section
9. Equitable Remedies.

 

Executive
agrees that any damages awarded the Company for any breach of Sections 10 through 11 of this Agreement by Executive would be inadequate.
Accordingly, in addition to any damages and other rights or remedies available to the Company, the Company shall be entitled to
obtain injunctive relief from a court of competent jurisdiction temporarily, preliminarily and permanently restraining and enjoining
any such breach or threatened breach and to specific performance of any such provision of this Agreement. In the event that either
party commences litigation against the other under this Agreement the prevailing party in said litigation shall be entitled to
recover from the other all costs and expenses incurred to enforce the terms of this Agreement and/or recover damages for any breaches
thereof, including without limitation reasonable attorneys’ fees.

 

    	 	 	 

    	 

    

 

Section
10. Representations and Warranties.

 

	 	(a)
    	Executive
    represents and warrants as follows that: (i) Executive has no obligations, legal or otherwise, inconsistent with the terms
    of this Agreement or with the Executive’s undertaking a relationship with the Company; and (ii) Executive has not entered
    into, nor will Executive enter into, any agreement (whether oral or written) in conflict with this Agreement.
	 	 	 
	 	(b)
    	The
    Company represents and warrants to the Executive that this Agreement and the Restricted Shares grant have been duly authorized
    by the Company’s Board of Directors and are the valid and binding obligations of the Company, enforceable in accordance
    with their respective terms.

 

Section
11. Miscellaneous.

 

	 	(a)
    	Entire
    Agreement. This Agreement, the exhibits attached hereto, and the Restricted Shares granted concurrently herewith under
    Section 4(a) hereof, contain the entire understanding of the parties and supersede all previous contracts, arrangements or
    understandings, express or implied, between the Executive and the Company with respect to the subject matter hereof or his
    engagement by the Company as Chief Financial Officer. No agreements or representations, oral or otherwise, express or implied,
    with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement
    or in the attached exhibits.
	 	 	 
	 	(b)
    	Section
    Headings. The section headings herein are for the purpose of convenience only and are not intended to define or limit
    the contents of any section.
	 	 	 
	 	(c)
    	Severability.
    If any provision of this Agreement shall be declared to be invalid or unenforceable, in whole or in part, the remainder of
    this Agreement shall be deemed the same.
	 	 	 
	 	(d)	No
Oral Modification; Waiver or Discharge. No provisions of this Agreement may be modified, waived or discharged orally, but
only by a waiver, modification or discharge in writing signed by the Executive and such officer as may be designated by the Board
of Directors of the Company to execute such a waiver, modification or discharge. No waiver by either party hereto at any time
of any breach by the other party hereto of, or failure to be in compliance with, any condition or provision of this Agreement
to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the time or
at any prior or subsequent time.
	 	 	 
	 	(e)	Invalid
Provisions. Should any portion of this Agreement be adjudged or held to be invalid, unenforceable or void, such holding shall
not have the effect of invalidating or voiding the remainder of this Agreement and the parties hereby agree that the portion so
held invalid, unenforceable or void shall, if possible, be deemed amended or reduced in scope, or otherwise be stricken from this
Agreement to the extent required for the purposes of validity and enforcement.
	 	 	 
	 	(f)
    	Execution
    In Counterparts. The parties may sign this Agreement in counterparts, all of which shall be considered one and the same
    instrument. Facsimile transmissions, or electronic transmissions in .pdf format, of any executed original document and/or
    retransmission of any executed facsimile or .pdf transmission shall be deemed to be the same as the delivery of an executed
    original of this Agreement.
	 	 	 
	 	(g)
    	Governing
    Law And Performance. This Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive
    laws of the state of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of
    the state of Delaware or any other jurisdiction) that would cause the application of the law of any jurisdiction other than
    the state of Delaware. Any legal action or proceeding with respect to this Agreement shall be brought in the courts of the
    state of Delaware or of the United States of America for the State of Delaware. By execution and delivery of this Agreement,
    each of the parties hereto accepts for itself and in respect of its property, generally and unconditionally, the exclusive
    jurisdiction of the aforesaid courts. The prevailing party shall be entitled to all applicable remedies, including but not
    limited to actual damages caused by breach and reasonable attorney’s fees and costs.

 

    	 	 	 

    	 

    

 

	 	(h)
    	Successor
    and Assigns. This Agreement shall be binding on and inure to the benefit of the successors in interest of the parties,
    including, in the case of the Executive, the Executive’s heirs, executors and estate. The Executive may not assign Executive’s
    obligations under this Agreement. Any successor to the Company (whether direct or indirect and whether by purchase, merger,
    consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume
    the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner
    and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all
    purposes under this Agreement, the term “Company” shall include any successor to the Company’s business
    and/or assets which executes and delivers the assumption agreement described in this Section 11(h) or which becomes bound
    by the terms of this Agreement by operation of law.
	 	 	 
	 	(i)
    	Notices.
    Any notices or other communications provided for hereunder may be made by hand, by certified or registered mail, postage prepaid,
    return receipt requested, or by nationally recognized express courier services provided that the same are addressed to the
    party required to be notified at its address first written above, or such other address as may hereafter be established by
    a party by written notice to the other party. Notice shall be considered accomplished on the date delivered, three days after
    being mailed or one day after deposit with the express courier, as applicable.

 

Section
12. Section 409A.

 

	 	(a)
    	It
    is intended that any compensation or benefits under this Agreement satisfy, to the greatest extent possible, the exemptions
    from the application of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) provided
    under Treasury Regulations Sections 1.409A-1(b), and this Agreement will be construed to the greatest extent possible as consistent
    with those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in
    a manner that complies with Section 409A. For purposes of Section 409A, the Executive’s right to receive any installment
    payments under this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each
    installment payment hereunder shall at all times be considered a separate and distinct payment. Severance benefits under Section
    6(d) shall not commence until the Executive has a “separation from service” for purposes of Section 409A.
	 	 	 
	 	(b)
    	To
    the extent that any reimbursement of expenses or in-kind benefits constitutes deferred compensation under Section 409A, such
    reimbursement or benefit shall be provided no later than December 31 of the year following the year in which the expense was
    incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent
    year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in
    any other year.
	 	 	 
	 	(c)	If
    the Executive is deemed at the time of his separation from service to be a specified employee for purposes of Section 409A(a)(2)(B)(i)
    of the Code, to the extent delayed commencement of any portion of the compensation and benefits to which the Executive is
    entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the
    Code, such portion of the Executive’s termination benefits shall be provided to the Executive immediately after the
    earlier of (A) the expiration of the six-month period measured from the date of the Executive’s separation from service
    with the Company (as such term is defined in the Treasury Regulations issued under Section 409A of the Code) or (B) the date
    of the Executive’s death in a lump sum, and any remaining payments due under the Agreement shall be paid as otherwise
    provided herein.

 

    	 	 	 

    	 

    

 

Section
13. Limitation of Payments upon Certain Events.

 

	 	(a)
    	Limitation
    on Payments. Notwithstanding anything in this Agreement to the contrary, if any payment or distribution Executive would
    receive pursuant to this Agreement or otherwise (“Payment”) would (a) constitute a “parachute payment”
    within the meaning of Section 280G of the Code, and (b) but for this sentence, be subject to the excise tax imposed by Section
    4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts
    of the Payment are paid to Executive, which of the following alternative forms of payment would maximize Executive’s
    after-tax proceeds: (i) payment in full of the entire amount of the Payment (a “Full Payment”), or (ii)
    payment of only a part of the Payment so that Executive receives that largest Payment possible without being subject to the
    Excise Tax (a “Reduced Payment”), whichever of the foregoing amounts, taking into account the applicable
    federal, state and local income taxes and the Excise Tax (all computed at the highest marginal rate, net of the maximum reduction
    in federal income taxes which could be obtained from a deduction of such state and local taxes), results in Executive’s
    receipt, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all or some portion the Payment
    may be subject to the Excise Tax.
	 	 	 
	 	(b)
    	The
    independent registered public accounting firm engaged by the Company for general audit purposes as of the day prior to the
    date the first Payment is due shall make all determinations required to be made under this Section 13. If the independent
    registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual, group
    or entity effecting the transaction, the Company shall appoint a nationally recognized independent registered public accounting
    firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations
    by such independent registered public accounting firm required to be made hereunder.
	 	 	 
	 	(c)
    	The
    independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations,
    together with detailed supporting documentation, to the Company and Executive at such time as requested by the Company or
    Executive. If the independent registered public accounting firm determines that no Excise Tax is payable with respect to a
    Payment, either before or after the application of the Reduced Payment, it shall furnish the Company and Executive with an
    opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith
    determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Employment Agreement under seal as of the date and year first above written.

 

	Company:	 
	 		 
	Verus International, Inc.	 
	 	 
	 	 	 
	By:
    	Anshu
    Bhatnagar	 
	 	Chief
    Executive Officer	 
	 	 	 
	Executive:	 
	 	 	 
	 	 	 
	By:
    	Chris
    Cutchens

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