Document:

Exhibit 10.4

 

	 	Option No.:	 

 

SB
ONE BANCORP

2019
EQUITY INCENTIVE PLAN

NONQUALIFIED
Stock OPTION AGREEMENT

COVER SHEET

 

SB One Bancorp, a New
Jersey corporation (the “Company”), hereby grants an option (the “Option”) to purchase shares
of its common stock, no par value per value (the “Stock”), to the Grantee named below, subject to the vesting
and other conditions set forth below. Additional terms and conditions of the grant are set forth in this cover sheet and in the
attached Nonqualified Stock Option Agreement (collectively, the “Agreement”) and in the Company’s 2019
Equity Incentive Plan (as amended from time to time, the “Plan”).

 

	Grantee’s Name:	 	 
	Grant Date:	 	 
	Number of Shares of Stock Covered by the Option:	 	 
	Option Price per Share of Stock:1	 	$
	Vesting Start Date:	 	 
	Vesting Schedule:	 	 

 

By your signature
below, you agree to all of the terms and conditions described in the Agreement and in the Plan. You acknowledge that you have carefully
reviewed the Plan and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent
with the Plan.

 

	Grantee:	 	 	Date:	 	 
	 	(Signature)	 	 	 	 
	 	 	 	 	 	 
	Company:	 	 	Date:	 	 
	 	(Signature)	 	 	 	 
	 	 	 	 	 	 
	Name:	 	 	 	 	 
	Title:	 	 	 	 	 

 

Attachment

 

This is not a share certificate
or a negotiable instrument.

 

 

1
Note to Draft: Must be At least 100% of the Fair Market Value of a share of Stock on the Grant Date

 

     

     

    

 

SB ONE BANCORP

2019
EQUITY INCENTIVE PLAN

NONQUALIFIED
Stock OPTION AGREEMENT

 

	Nonqualified Stock Option  	 	This Agreement evidences an award of an Option exercisable for that number of shares of Stock set forth on the cover sheet of this Agreement and subject to the vesting and other conditions set forth in this Agreement and in the Plan.  This Option is not intended to be an “incentive stock option” under Section 422 of the Code and will be interpreted accordingly.  
	 	 	 
	Vesting	 	
        This Option is exercisable only before
        it expires and then only with respect to the vested portion of the Option.

         

        The Option will vest in accordance with
        the vesting schedule shown on the cover sheet, so long as you continue in Service on each applicable vesting date set forth on
        the cover sheet. Fractional shares shall be rounded to the nearest whole share but, if applicable, shall be rounded up or down
        on the last applicable vesting date so that you are eligible to vest in the total number of shares of Stock covered by the Option;
        provided, you may not vest in more than the number of shares of Stock covered by the Option, as set forth on the cover sheet of
        this Agreement.

         

        Except as provided under “Death”
        or “Disability” below, no additional shares of Stock will vest after your Service has terminated for any reason.

	 	 	 
	Term	 	
        Notwithstanding anything in this Agreement
        to the contrary, your Option will expire in any event at the close of business at Company headquarters on the day before the tenth
        (10th) anniversary of the Grant Date, as shown on the cover sheet.

         

        Your Option will expire earlier if your
        Service terminates, as described herein.

	 	 	 
	Regular Termination	 	If your Service terminates for any reason other than death, Disability, or Cause, then your Option will expire at the close of business at Company headquarters on the thirtieth (30th) day after your termination of Service.
	 	 	 
	Termination for Cause	 	If your Service is terminated for Cause, you will immediately forfeit all rights to your Option (whether vested or unvested), and the Option will immediately expire.  You will be prohibited from exercising the Option from and after the time of such termination of Service.  
	 	 	 
	Death 	 	If your Service terminates because of your death, then your Option will become fully vested as of your date of death and will expire at the close of business at Company headquarters on the date twelve (12) months after your date of death.  During that twelve (12)-month period, your estate or heirs may exercise your Option.
	 	 	 
	Disability	 	If your Service terminates because of your Disability, then your Option will become fully vested as of the date of your termination of Service and will expire at the close of business at Company headquarters on the date six (6) months after the date of your termination of Service. 

 

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	Leaves of Absence	 	
        For purposes of this Agreement, your Service
        does not terminate when you go on a bona fide employee leave of absence that was approved by the Company or an Affiliate
        in writing, if the terms of the leave provide for continued Service crediting or when continued Service crediting is required by
        applicable law. However, your Service will be treated as terminating ninety (90) days after you went on employee leave, unless
        your right to return to active work is guaranteed by law or by a contract. Your Service terminates in any event when the approved
        leave ends unless you immediately return to active employee work.

         

        The Company determines, in its sole discretion,
        which leaves count for this purpose and when your Service terminates for all purposes under the Plan.

	 	 	 
	Forfeiture of Unvested Option	 	Unless the termination of your Service triggers accelerated vesting or other treatment of your Option pursuant to the terms of this Agreement, the Plan, or any other written agreement between the Company or Affiliate and you, you will automatically forfeit to the Company those portions of the Option that have not yet vested in the event your Service terminates for any reason.
	 	 	 
	Notice of Exercise	 	
        The Option may be exercised, in whole or
        in part, to purchase a whole number of vested shares of Stock of not less than one hundred (100) shares, unless the number of vested
        shares of Stock purchased is the total number available for purchase under the Option, by following the procedures set forth in
        the Plan and in this Agreement.

         

        When you wish to exercise this Option,
        you must exercise in a manner required or permitted by the Company.

         

        If someone else wants to exercise this
        Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so.

	 	 	 
	Form of Payment	 	
        When you exercise your Option, you must
        include payment of the Option Price indicated on the cover sheet for the shares of Stock you are purchasing. Payment may be made
        in one (or a combination) of the following forms:

         

        ·     Cash,         your personal check, a cashier’s check, a money order, or another cash equivalent acceptable
        to the Company.

        ·  
          Shares of Stock that are owned by you and that are surrendered to the Company. The Fair Market Value of the
        shares of Stock as of the effective date of the Option exercise will be applied to the Option Price.

        ·     By
        delivery (on a form prescribed by the Company) of an irrevocable direction to a licensed securities broker acceptable to the Company
        to sell shares of Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Option Price
        and any withholding taxes (if approved in advance by the Committee or the Board if you are either an executive officer or a director
        of the Company).

        ·     With
the consent of the Company, the Company’s withholding shares of Stock that would otherwise be issuable in an amount equal
to the Option Price and the required tax withholding amount.

	 	 	 
	Evidence of Issuance	 	The issuance of the shares of Stock upon exercise of this Option will be evidenced in such a manner as the Company, in its discretion, will deem appropriate, including, without limitation, book-entry or direct registration (including transaction advices) or the issuance of one or more share certificates.

 

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	Withholding Taxes	 	You agree as a condition of this grant that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise or sale of shares of Stock acquired under this Option.  In the event that the Company or any Affiliate determines that any federal, state, local, or foreign tax or withholding payment is required relating to the exercise of this Option or sale of shares of Stock arising from this Option, the Company or any Affiliate will have the right to require such payments from you or withhold such amounts from other payments due to you from the Company or any Affiliate (including withholding the delivery of vested shares of Stock otherwise deliverable upon exercise of this Option).
	 	 	 
	Transfer of Option	 	
        [During your lifetime, only you (or, in
        the event of your legal incapacity or incompetency, your guardian or legal representative) may exercise the Option. The Option
        may not be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered, whether by operation of law or otherwise,
        nor may the Option be made subject to execution, attachment, or similar process. If you attempt to do any of these things, this
        Option will immediately become forfeited.]

         

        OR

         

        [Except as provided in this section, during
        your lifetime, only you (or, in the event of your legal incapacity or incompetency, your guardian or legal representative) may
        exercise the Option, and the Option may not be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered, whether
        by operation of law or otherwise, nor may the Option be made subject to execution, attachment, or similar process. You may transfer
        all or part of this Option, not for value, to any Family Member, provided that you provide prior written notice to the Company,
        in a form satisfactory to the Company, of such transfer. For the purpose of this section, a “not for value” transfer
        is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights, or
        (iii) a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (or you)
        in exchange for an interest in such entity. Subsequent transfers of transferred options are prohibited except to your Family Members
        in accordance with this section or by will or the laws of descent and distribution. In the event of your termination of Service,
        this Agreement shall continue to be applied with respect to you, following which the Option shall be exercisable by the transferee
        only to the extent and for the periods specified herein.]

	 	 	 
	Retention Rights	 	This Agreement and the grant evidenced by this Agreement do not give you the right to be retained or employed by the Company or any Affiliate in any capacity.  Unless otherwise specified in an employment or other written agreement between the Company or any Affiliate and you, the Company and any Affiliate reserve the right to terminate your Service at any time and for any reason.
	 	 	 
	Stockholder Rights	 	
        You, or your estate or heirs, have no rights
        as a stockholder of the Company until the shares of Stock have been issued upon exercise of your Option and either a certificate
        evidencing your shares of Stock have been issued or an appropriate entry has been made on the Company’s books. No adjustments
        are made for dividends, distributions, or other rights if the applicable record date occurs before your certificate is issued (or
        an appropriate book entry is made), except as described in the Plan.

         

        Your Option will be subject to the terms
        of any applicable agreement of merger, liquidation, or reorganization in the event the Company is subject to such corporate activity.

        

 

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	Forfeiture of Rights	 	If you should take actions in violation or breach of or in conflict with (i) an employment agreement, (ii) a non-competition agreement, (iii) an agreement prohibiting solicitation of Employees or clients of the Company or an Affiliate, (iv) a confidentiality obligation with respect to the Company or an Affiliate, or (v) a Company policy or procedure, the Company has the right to cause an immediate forfeiture of the gain, if any, you have realized under this Agreement and your rights to this Option, and the Option will immediately expire.
	 	 	 
	Clawback	 	
        This Option is subject to mandatory repayment
        by you to the Company to the extent you are or in the future become subject to (i) any Company “clawback” or recoupment
        policy or (ii) any law, rule, or regulation that requires the repayment by you to the Company of compensation paid by the Company
        to you in the event that you fail to comply with, or violate, the terms or requirements of such policy or law, rule, or regulation.

         

        If the Company is required to prepare an
        accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting
        requirement under the securities laws and you knowingly engaged in the misconduct, were grossly negligent in engaging in the misconduct,
        knowingly failed to prevent the misconduct, or were grossly negligent in failing to prevent the misconduct, you will reimburse
        the Company the amount of any payment in settlement of this Option earned or accrued during the twelve (12)-month period following
        the first public issuance or filing with the Securities and Exchange Commission (whichever first occurred) of the financial document
        that contained such material noncompliance.

	 	 	 
	Applicable Law	 	This Agreement will be interpreted and enforced under the laws of the State of New Jersey, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.
	 	 	 
	The Plan	 	
        The text of the Plan is incorporated into
        the Agreement by reference.

         

        Certain capitalized terms
used in the Agreement are defined in the Plan and have the meaning set forth in the Plan.

         

        This Agreement and the Plan constitute
        the entire understanding between you and the Company regarding this Option. Any prior agreements, commitments, or negotiations
        concerning this grant are superseded; except that any written employment, consulting, confidentiality, non-solicitation, and/or
        severance agreement between you and the Company or any Affiliate will supersede this Agreement with respect to its subject matter.

	 	 	 
	Data Privacy	 	
        To administer the Plan, the Company may
        process personal data about you. Such data includes, but is not limited to, information provided in this Agreement and any changes
        thereto, other appropriate personal and financial data about you, such as your contact information and payroll information, and
        any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan.

         

        By accepting this grant, you give explicit
        consent to the Company to process any such personal data.

 

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	Consent to Electronic Delivery	 	The Company may choose to deliver certain statutory materials relating to the Plan in electronic form.  By accepting this grant, you agree that the Company may deliver the Plan prospectus and the Company’s annual report to you in an electronic format.  If at any time you would prefer to receive paper copies of these documents, as you are entitled to, the Company would be pleased to provide copies.  Please contact the Company’s Human Resources Department to request paper copies of these documents.
	 	 	 
	Code Section 409A 	 	The Option is intended to be exempt from, or to comply with, Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement will be interpreted and administered to be in compliance with Code Section 409A.  Notwithstanding anything to the contrary in the Plan or this Agreement, neither the Company, its Affiliates, the Board, nor the Committee will have any obligation to take any action to prevent the assessment of any excise tax or penalty on you under Code Section 409A, and neither the Company, an Affiliate, the Board, the Committee, nor any person acting on behalf of the Company, an Affiliate, the Board, or the Committee will be liable to you or to your estate or beneficiary by reason of any acceleration of income or any additional tax (including any interest and penalties), asserted by reason of the failure of the grant to satisfy the requirements of Code Section 409A or otherwise asserted with respect to the grant.

 

By signing the Agreement, you agree
to all of the terms and conditions

described above and in the Plan.

 

    6Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”),
made and entered into this 29th day of April, 2019 (the “Effective Date”), by and between Globe Photos,
Inc., a Delaware corporation (“Company”), and Evan Bedell (“Executive”).

 

WHEREAS, Company wishes to
employ Executive as its Chief Financial Officer;

 

WHEREAS, Executive represents
that Executive possesses the necessary skills to perform the duties of this position and that Executive has no obligation to any
other person or entity which would prevent, limit or interfere with Executive’s ability to do so; and

 

WHEREAS, Executive and
Company desire to enter into a formal Employment Agreement to assure the harmonious performance of the affairs of
Company.

 

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

 

1. Roles and Duties. Subject
to the terms and conditions of this Agreement, Company shall employ Executive as its Chief Financial Officer
(“CFO”) reporting to Company’s Chief Executive Officer (“CEO”). Executive accepts such
employment upon the terms and conditions set forth herein, and agrees to perform to the best of Executive’s ability the
duties normally associated with such position, including but not limited to those set forth on Exhibit A hereto, and
as determined by Company in its sole discretion. During Executive’s employment, Executive shall devote substantially
all of Executive’s business time and energies to the business and affairs of Company. Nothing contained in this
Section 1 shall prevent or limit Executive’s right to manage Executive’s personal investments on
Executive’s own personal time. During Executive’s employment, Executive shall not engage in any other non-Company
related business activities without Company’s prior written consent (via email acceptable), which shall not be
unreasonably withheld. Executive may be involved in civic and charitable activities so long as such activities do not
interfere with Executive’s duties for Company, provided that Executive shall not serve in any official
capacity, including as a member of a board, without the prior written approval of Company (via email acceptable), such
consent not to be unreasonably withheld.

 

2. Term of
Employment.

 

(a) Term. Subject to the
terms hereof, Executive’s employment hereunder shall have commenced on the Effective Date (the “Commencement
Date”) and shall continue until terminated hereunder by either party (such term of employment referred to herein as the
“Term”).

 

(b) Termination.
Notwithstanding anything else contained in this Agreement, Executive’s employment hereunder shall terminate upon the
earliest to occur of the following:

 

(i) Death.
Immediately upon Executive’s death;

 

(ii) Termination by
Company.

 

(A) If because of Executive’s Disability
(as defined below in Section 2(c)), upon written notice by Company to Executive that Executive’s employment is being
terminated as a result of Executive’s Disability, which termination shall be effective on the date of such notice or such
later date as specified in writing by Company;

 

 

 

    
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(B) If for Cause (as defined below in
Section 2(d)), upon written notice by Company to Executive that Executive’s employment is being terminated for Cause
which termination shall be effective on the date of such notice or such later date as specified in writing by Company; or

 

(C) If by Company for reasons other than
under Sections 2(b)(ii)(A) or (B), upon written notice by Company to Executive that Executive’s employment is being terminated,
which termination shall be effective immediately after the date of such notice or such later date as specified in writing by Company.

 

(iii) Termination by
Executive.

 

(A) If for Good Reason (as defined
below in Section 2(e)), upon written notice by Executive to Company that Executive is terminating Executive’s
employment for Good Reason and that sets forth the factual basis supporting the alleged Good Reason, which termination shall
be effective thirty (30) days after the date of such notice; provided that if Company has cured the
circumstances giving rise to the Good Reason, then such termination shall not be effective; or

 

(B) If without Good Reason, written notice
by Executive to Company that Executive is terminating Executive’s employment, which termination shall be effective at least
thirty (30) days after the date of such notice.

 

Notwithstanding anything in this
Section 2(b), Company may at any point terminate Executive’s employment for Cause prior to the effective date of any
other termination contemplated hereunder.

 

(c) Definition of
“Disability”. For purposes of this Agreement, “Disability” shall mean Executive’s
incapacity or inability to perform Executive’s duties and responsibilities as contemplated herein for one hundred
twenty (120) days or more within any one (1) year period (cumulative or consecutive), because Executive’s
physical or mental health has become so impaired as to make it impossible or impractical for Executive to perform the duties
and responsibilities contemplated hereunder. Determination of Executive’s physical or mental health shall be determined
by Company after consultation with a medical expert appointed by mutual agreement between Company and Executive who has
examined Executive. Executive hereby consents to such examination and consultation regarding Executive’s health and
ability to perform as aforesaid.

 

(d) Definition of
“Cause”. As used herein, “Cause” shall include: (i) Executive’s willful engagement in
dishonesty, illegal conduct or engagement in gross misconduct, which is, in each case, materially injurious to Company or any
affiliate; (ii) Executive’s deliberate insubordination; (iii) Executive’s substantial malfeasance or
nonfeasance of duty; (iv) Executive’s unauthorized disclosure of confidential information;
(v) Executive’s embezzlement, misappropriation or fraud, whether or not related Executive’s employment with
Company; (vi) Executive being convicted of or entering a plea of “guilty” or “no contest” to a felony
or other crime of moral turpitude; or (vii) Executive’s breach of a material provision of any employment,
non-disclosure, invention assignment, non-competition, or similar agreement between Executive and Company. In all cases,
Company shall provide Executive with written notice of the specific conduct or events that Company believes constitutes Cause
and, in case of (ii) and (iii) above, Executive shall have thirty (30) days to effect a cure of the claimed
conduct or events.

 

(e) Definition of “Good
Reason”. As used herein, “Good Reason” shall mean: (i) relocation of Executive’s principal
business location to a location more than fifty (50) miles from Executive’s then-current business location without
Executive’s consent; (ii) a material diminution in Executive’s duties, authority or responsibilities; (iii)
a material increase in Executive’s duties, authority or responsibilities without a corresponding increase in
compensation; or (iv) a material reduction in Executive’s Base Salary; provided that (A) Executive provides
Company with written notice that Executive intends to terminate Executive’s employment hereunder for one of the
circumstances set forth in this Section 2(e) within thirty (30) days of such circumstance occurring, (B) if
such circumstance is capable of being cured, Company has failed to cure such circumstance within a period of thirty
(30) days from the date of such written notice, and (C) Executive terminates Executive’s employment within
sixty five (65) days from the date that Good Reason first occurs. For purposes of clarification, the
above-listed conditions shall apply separately to each occurrence of Good Reason and failure to adhere to such conditions in
the event of Good Reason shall not disqualify Executive from asserting Good Reason for any subsequent occurrence of Good
Reason. For purposes of this Agreement, “Good Reason” shall be interpreted in a manner, and limited to the extent
necessary, so that it shall not cause adverse tax consequences for either party with respect to Section 409A
(“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”), and any successor
statute, regulation and guidance thereto.

 

 

 

    
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3. Compensation.

 

(a) Base Salary. Company shall
pay Executive a base salary (the “Base Salary”) at the annual rate of Two Hundred Twenty-Five Thousand Dollars
($225,000). The Base Salary shall be payable in substantially equal periodic installments in accordance with Company’s
payroll practices as in effect from time to time. Company shall deduct from each such installment all amounts required to be
deducted or withheld under applicable law or under any employee benefit plan in which Executive participates. The Board or an
appropriate committee thereof shall review the Base Salary on an annual basis.

 

(b) Annual Performance Bonus.
Executive shall be eligible to receive an annual cash bonus (the “Annual Performance Bonus”), with the target
amount of such Annual Performance Bonus equal to Seventy-Five Percent (75%) to One Hundred Percent (100%) of
Executive’s Base Salary in the year to which the Annual Performance Bonus relates, provided that the
actual amount of the Annual Performance Bonus may be greater or less than such target amount. The amount of the Annual
Performance Bonus shall be determined by the Board or an appropriate committee thereof in its sole discretion, and shall be
paid to Executive no later than March 15th of the calendar year immediately following the calendar year
in which it was earned. Executive must be employed by Company on the last day of the fiscal year on which the Annual
Performance Bonus is earned in order to be eligible for, and to be deemed as having earned, such Annual Performance Bonus.
Company shall deduct from the Annual Performance Bonus all amounts required to be deducted or withheld under applicable law
or under any employee benefit plan in which Executive participates. For the current calendar year, Executive shall be
eligible for an Annual Performance Bonus at the target amount subject to the terms and conditions described above.

 

(c) Sign-On Bonus Grant.
Subject to approval of the Board or an appropriate committee thereof, Company shall issue Executive Restricted Stock Units as
a sign-on bonus (the “Sign-On Bonus”) in the amount of Five Hundred Thousand (500,000) shares of common stock of
the Company, which shall vest in a series of twelve (12) successive equal monthly installments commencing on the Effective
Date.

 

(d) Equity. Subject to
approval of the Board or an appropriate committee thereof, Company shall grant Executive on the Commencement Date or as soon
as practicable thereafter, pursuant to the terms of the 2018 Incentive Plan (the “Plan”), options to purchase
20,000,000 shares of common stock of Company, at a per share exercise price equal to the Fair Market Value (as defined in the
Plan) of Company’s common stock on the date of grant, which options shall each be, to the maximum extent permissible,
treated as an “incentive stock option” within the meaning of Section 422 of the Code. The options shall vest as
follows: (i) 10,000,000 options shall vest in equal installments on the last day of each of the forty-eight (48) successive
months after the Commencement Date, (ii) an additional 5,000,000 options shall vest in the first fiscal quarter in which the
Company’s trailing twelve month (“TTM”) revenues exceed $50,000,000, and (iii) the remaining 5,000,000
options shall vest in the first fiscal quarter in which the Company’s TTM revenues exceed $100,000,000, provided
that Executive remains employed by Company on the applicable vesting dates, except as otherwise set forth herein or in the
Plan. The options shall be evidenced in writing by, and subject to the terms and conditions of, the Plan and Company’s
standard form of stock option agreement, which agreement shall expire ten (10) years from the date of grant except as
otherwise provided in the stock option agreement or the Plan. Company agrees to make any modifications to the Plan as
necessary to effect the options granted pursuant to this Section 3(d).

 

(e) Paid Time Off. Executive
may take up to twenty (20) days of paid time off (“PTO”) per year, to be scheduled to minimize disruption to Company’s
operations, pursuant to the terms and conditions of Company policy and practices as applied to Company senior executives.

 

(f) Fringe Benefits.
Executive shall be entitled to participate in all benefit/welfare plans and fringe benefits provided to Company senior
executives. Executive understands that, except when prohibited by applicable law, Company’s benefit plans and fringe
benefits may be amended by Company from time to time in its sole discretion.

 

 

 

    
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(g) Reimbursement of
Expenses. Company shall reimburse Executive for all ordinary and reasonable out-of-pocket business expenses incurred by
Executive, in furtherance of Company’s business in accordance with Company’s policies with respect thereto as in
effect from time to time. Executive must submit any request for reimbursement no later than ninety (90) days following
the date that such business expense is incurred. All reimbursements provided under this Agreement shall be made or provided
in accordance with the requirements of Section 409A including, where applicable, the requirement that (i) any
reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in
this Agreement); (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the
expenses eligible for reimbursement in any other calendar year; (iii) the reimbursement of an eligible expense shall be
made no later than the last day of the calendar year following the year in which the expense is incurred; and (iv) the
right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit. Notwithstanding the
foregoing, Company shall reimburse Executive for attorneys’ and consultants’ fees incurred in the preparation and
negotiation of this Agreement in an amount not to exceed $5,000.00, subject to the submission of a summary invoice from
Executive’s law firm or consultant, which for the avoidance of doubt shall not include any confidential or
privileged information, and provided that Executive shall submit invoices to Company within ninety (90) days of incurrence of
the expense, and Company shall reimburse Executive within sixty (60) days thereafter.

 

(h) Indemnification.
Executive shall be entitled to indemnification with respect to Executive’s services provided hereunder pursuant to
Delaware law, the terms and conditions of Company’s certificate of incorporation and/or by-laws, and the
Company’s directors and officers (“D&O”) liability insurance policy. The Company shall give thirty (30)
days’ prior written notice to Executive of cancellation, non-renewal, or material change in coverage, scope or amount
of such director and officer liability policy. The provisions of this Section 3(h) are in the nature of contractual
obligations and no change in applicable law or Company’s certificate of incorporation, bylaws or other organizational
documents or policies shall affect the Executive’s rights hereunder.

 

4. Payments Upon Change of
Control or Termination.

 

(a) Definition of Accrued
Obligations. For purposes of this Agreement, “Accrued Obligations” means: (i) the portion of
Executive’s Base Salary that has accrued prior to any termination of Executive’s employment with Company and has
not yet been paid; and (ii) the amount of any expenses properly incurred by Executive on behalf of Company prior to any
such termination and not yet reimbursed. Executive’s entitlement to any other compensation or benefit under any plan of
Company shall be governed by and determined in accordance with the terms of such plans, except as otherwise specified in this
Agreement.

 

(b) Termination by Company for
Cause, by Executive Without Good Reason, or as a Result of Executive’s Disability or Death. If Executive’s employment
hereunder is terminated by Company for Cause, by Executive without Good Reason, or as a result of Executive’s Disability
or death, then Company shall pay the Accrued Obligations to Executive promptly following the effective date of such termination
and shall have no further obligations to Executive.

 

(c) Termination by Company
Without Cause or by Executive for Good Reason. In the event that Executive’s employment is terminated by action of
Company other than for Cause, or Executive terminates Executive’s employment for Good Reason, then, in addition to the
Accrued Obligations, Executive shall receive the following, subject to the terms and conditions described in
Section 4(e) (including Executive’s execution of a release of claims):

 

(i) Severance Payments.
Continuation of payments in an amount equal to Executive’s then-current Base Salary for a six (6) month period,
less all customary and required taxes and employment-related deductions, in accordance with Company’s normal payroll
practices (provided such payments shall be made at least monthly), commencing on the first payroll date following the date on
which the release of claims required by Section 4(e) becomes effective and non-revocable, but not after seventy
(70) days following the effective date of termination from employment; provided, that if the 70th day falls in the
calendar year following the year during which the termination or separation from service occurred, then the payments will
commence in such subsequent calendar year; provided further that if such payments commence in such subsequent year, the first
such payment shall be a lump sum in an amount equal to the payments that would have come due since Employee’s
separation from service.

 

 

 

    
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(ii) Equity Acceleration. On the
date of termination of Executive’s employment, Executive shall become fully vested in any and all outstanding equity awards
that would have vested during the six- (6) month period following the termination date.

 

(iii) Benefits Payments. Upon
completion of appropriate forms and subject to applicable terms and conditions under the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”), Company shall continue to provide Executive medical insurance coverage at no cost
to Executive to the same extent that such insurance continues to be provided to similarly situated executives at the time of Executive’s
termination, until the earlier to occur of six (6) months following Executive’s termination date or the date Executive
begins employment with another employer. Executive shall bear full responsibility for applying for COBRA continuation coverage
and Company shall have no obligation to provide Executive such coverage if Executive fails to elect COBRA benefits in a timely
fashion; provided, however, Company has made all such COBRA notifications in a timely manner as required by law.

 

Payment of the above described severance
payments and benefits are expressly conditioned on Executive’s execution without revocation of the release of claims under
Section 4(e) and return of Company property under Section 6.

 

(d) Change of Control and Termination
by Company Without Cause or by Executive For Good Reason Following a Change of Control. In the event that a Change of Control
(as defined below) occurs, Executive’s 10,000,000 shares of option grants set forth in Section 3(d)(i) shall accelerate
and become fully vested.

 

As used herein, a “Change of
Control” shall mean the occurrence of any of the following events: (i) Ownership. Any “Person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the
“Beneficial Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of Company
representing fifty percent (50%) or more of the total voting power represented by Company’s then outstanding
voting securities (excluding for this purpose any such voting securities held by Company, or any affiliate, parent or
subsidiary of Company, or by any employee benefit plan of Company) pursuant to a transaction or a series of related
transactions which the Board does not approve; or (ii) Merger/Sale of Assets. (A) A merger or consolidation of
Company whether or not approved by the Board, other than a merger or consolidation which would result in the voting
securities of Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or the parent of such corporation) at least fifty percent
(50%) of the total voting power represented by the voting securities of Company or such surviving entity or parent of
such corporation, as the case may be, outstanding immediately after such merger or consolidation; (B) the sale or disposition
by Company of all or substantially all of Company’s assets; or (iii) Change in Board Composition. A change in
the composition of the Board, as a result of which fewer than a majority of the directors are Incumbent
Directors. “Incumbent Directors” shall mean directors who either (A) are directors of Company as of the
Commencement Date, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a
majority of the Incumbent Directors, or by a committee of the Board made up of at least a majority of the Incumbent
Directors, at the time of such election or nomination (but shall not include an individual whose election or nomination is in
connection with an actual or threatened proxy contest relating to the election of directors).

 

(e) Execution of Release of
Claims. Company shall not be obligated to pay Executive any of the severance payments or benefits described in this
Section 4 unless and until Executive has executed (without revocation) a timely release of claims in a form that is
acceptable to Company, and which includes standard and reasonable terms regarding items such as mutual non-disparagement,
confidentiality, cooperation and the like, which must be provided to Executive within fifteen (15) days following
separation from service, and signed by Executive and returned to Company no later than sixty (60) days following
Executive’s separation from service (the “Review Period”), and which shall include a general release of
claims against Company and its affiliated entities and each of their officers, directors, employees and others associated
with Company and its affiliated entities. If Executive fails or refuses to return such agreement within the Review Period,
Executive’s severance payments hereunder and benefits shall be forfeited.

 

(f) No Other Payments or Benefits
Owing. The payments and benefits set forth in this Section 4 shall be the sole amounts owing to Executive upon termination
of Executive’s employment for the reasons set forth above and Executive shall not be eligible for any other payments or other
forms of compensation or benefits. The payments and benefits set forth in Section 4 shall be the sole remedy, if any, available
to Executive in the event that Executive brings any claim against Company relating to the termination of Executive’s employment
under this Agreement.

 

 

 

    
	 	5	 

     

    

 

5. Prohibited Competition And
Solicitation. Executive expressly acknowledges that: (a) there are competitive and proprietary aspects of
the business of Company; (b) during the course of Executive’s employment, Company shall furnish, disclose or make
available to Executive confidential and proprietary information and may provide Executive with unique and specialized
training; (c) such Confidential Information and training have been developed and shall be developed by Company through
the expenditure of substantial time, effort and money, and could be used by Executive to compete with Company; and
(d) in the course of Executive’s employment, Executive shall be introduced to customers and others with important
relationships to Company, and any and all “goodwill” created through such introductions belongs exclusively to
Company, including, but not limited to, any goodwill created as a result of direct or indirect contacts or relationships
between Executive and any customers of Company. In light of the foregoing acknowledgements, and as a condition of employment
hereunder, Executive agrees to execute and abide by Company’s Confidentiality, Assignment of Inventions
and Non-Competition Agreement.

 

6. Property and
Records. Upon the termination of Executive’s employment hereunder for any reason or for no reason, or if
Company otherwise requests, Executive shall: (a) return to Company all tangible business information and copies thereof
(regardless how such Confidential Information or copies are maintained), and (b) deliver to Company any property of
Company which may be in Executive’s possession, including, but not limited to, Blackberry-type devices, smart phones,
laptops, cell phones, products, materials, memoranda, notes, records, reports or other documents or photocopies of the
same.

 

7. Code Sections 409A and
280G.

 

(a) In the event that the payments or
benefits set forth in Section 4 of this Agreement constitute “non-qualified deferred compensation” subject
to Section 409A, then the following conditions apply to such payments or benefits:

 

(i) Any termination of
Executive’s employment triggering payment of benefits under Section 4 must constitute a “separation from
service” under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) before distribution of such
benefits can commence. To the extent that the termination of Executive’s employment does not constitute a separation of
service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) (as the result of further services
that are reasonably anticipated to be provided by Executive to Company at the time Executive’s employment terminates),
any such payments under Section 4 that constitute deferred compensation under Section 409A shall be delayed until
after the date of a subsequent event constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code and
Treas. Reg. §1.409A-1(h). For purposes of clarification, this Section 7(a) shall not cause any forfeiture of
benefits on Executive’s part, but shall only act as a delay until such time as a “separation from service”
occurs.

 

(ii) Notwithstanding any other
provision with respect to the timing of payments under Section 4 if, at the time of Executive’s termination,
Executive is deemed to be a “specified employee” of Company (within the meaning of Section 409A(a)(2)(B)(i) of
the Code), then limited only to the extent necessary to comply with the requirements of Section 409A, any payments to
which Executive may become entitled under Section 4 which are subject to Section 409A (and not otherwise exempt
from its application) shall be withheld until the first (1st) business day of the seventh
(7th) month following the termination of Executive’s employment, at which time Executive shall be paid
an aggregate amount equal to the accumulated, but unpaid, payments otherwise due to Executive under the terms of
Section 4.

 

(b) It is intended that each installment
of the payments and benefits provided under Section 4 of this Agreement shall be treated as a separate “payment”
for purposes of Section 409A. Neither Company nor Executive shall have the right to accelerate or defer the delivery of any
such payments or benefits except to the extent specifically permitted or required by Section 409A.

 

(c) Notwithstanding any other provision
of this Agreement to the contrary, this Agreement shall be interpreted and at all times administered in a manner that avoids the
inclusion of compensation in income under Section 409A, or the payment of increased taxes, excise taxes or other penalties
under Section 409A. The parties intend this Agreement to be in compliance with Section 409A. Executive acknowledges and
agrees that Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit arising under
this Agreement, including but not limited to consequences related to Section 409A.

 

 

 

    
	 	6	 

     

    

 

(d) If any payment or benefit
Executive would receive under this Agreement, when combined with any other payment or benefit Executive receives pursuant to
a Change of Control (for purposes of this section, a “Payment”) would: (i) constitute a “parachute
payment” within the meaning of Section 280G the Code; and (ii) but for this sentence, be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be either: (A) the full
amount of such Payment; or (B) such lesser amount as would result in no portion of the Payment being subject to the Excise
Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local employments taxes,
income taxes and the Excise Tax, results in Executive’s receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. With respect to subsection
(B), if there is more than one method of reducing the payment as would result in no portion of the Payment being subject to
the Excise Tax, then Executive shall determine which method shall be followed, provided that if Executive fails
to make such determination within thirty (30) days after Company has sent Executive written notice of the need for such
reduction, Company may determine the amount of such reduction in its sole discretion.

 

8. Mediation/Dispute
Resolution/Governing Law.

 

(a) Subject to Section 8(c) below,
in the event of a dispute regarding any of the terms and conditions of this Agreement, or otherwise relating to Executive’s
employment with Company, either party may request that the other party engage in a mediation to resolve such dispute. If such request
is made, the other party shall respond in writing by no later than seven (7) business days thereafter, stating whether such
other party is willing to participate in such mediation, and such mediation shall occur within thirty (30) days following
such notification. If the parties are unable to agree to a mediator, then the matter shall be submitted to the mediation program
conducted by the American Arbitration Association in Las Vegas, Nevada, and a mediator shall be selected pursuant to the rules
applicable to such program.

 

(b) Subject to Section 8(c) below,
in the event that the other party declines to participate in a mediation, either party may require that the dispute be submitted
to binding arbitration, and in such event the dispute shall be settled by arbitration in accordance with the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association, except that both parties agree that the matter shall
be submitted to and resolved by a single arbitrator. Such arbitration shall occur in Las Vegas, Nevada. Each party hereby agrees
to a speedy hearing upon the matter in dispute, and the judgment upon the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof. Notwithstanding anything to the contrary in the rules cited above, and unless prohibited by
applicable law: (i) the costs and expenses of the arbitration, including the arbitrator’s fees and expenses, shall be
evenly split between the parties; (ii) each party shall pay for and bear the cost of his or its own experts, evidence and
counsel; and (iii) no award of punitive damages may be rendered by the arbitrator in such proceedings.

 

(c) Notwithstanding the foregoing, Company
and Executive expressly acknowledge and agree that Company retains the right, and nothing herein shall be deemed to limit Company’s
right, to seek immediate judicial relief (including injunctive relief) in a court of competent jurisdiction in the event of a claimed
breach by Executive of obligations under this Agreement, the Confidentiality, Assignment of Inventions and Non-Competition Agreement,
or other agreement related to non-competition, non-solicitation, non-disclosure and/or intellectual property, without the need
to submit to arbitration or post any bond or other financial guarantee in such court action.

 

9. General.

 

(a) Notices. Except as
otherwise specifically provided herein, any notice required or permitted by this Agreement shall be in writing and shall be
delivered as follows with notice deemed given as indicated: (i) by personal delivery when delivered personally;
(ii) by overnight courier upon written verification of receipt; (iii) by telecopy or facsimile transmission upon
acknowledgment of receipt of electronic transmission; or (iv) by certified or registered mail, return receipt requested,
upon verification of receipt.

 

Notices to Executive shall be sent to the
last known address in Company’s records or such other address as Executive may specify in writing.

 

	 	Notices to Company shall be sent to: 	6445
South Tenaya Way, B-130
	 	 	Las Vegas, NV 90232
	 	 	Attn: Stuart Scheinman, CEO

 

 

 

    
	 	7	 

     

    

 

(b) Modifications and
Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by
the parties hereto.

 

(c) Waivers and Consents. The
terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written
document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be
deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether
or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it
was given, and shall not constitute a continuing waiver or consent.

 

(d) Assignment. Company may
assign its rights and obligations hereunder to any person or entity that succeeds to all or substantially all of
Company’s business or that aspect of Company’s business in which Executive is principally involved. Executive may
not assign Executive’s rights and obligations under this Agreement without the prior written consent of Company.

 

(e) Governing Law. This
Agreement shall be governed by and construed in accordance with the substantive laws of the State of Nevada, without giving
effect to any choice or conflict of law provision or rule, and any legal action permitted by this Agreement to enforce an
award or for a claimed breach shall be governed by the laws of the State of Nevada and shall be commenced and maintained
solely in any state or federal court located in the State of Nevada, and both parties hereby submit to the jurisdiction and
venue of any such court.

 

(f) Headings and Captions. The
headings and captions of the various subdivisions of this Agreement are for convenience of reference only and shall in no way
modify or affect the meaning or construction of any of the terms or provisions hereof.

 

(g) Entire Agreement. This
Agreement, together with the other agreements specifically referenced herein, embodies the entire agreement and understanding
between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and
understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any
kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms
and provisions of this Agreement.

 

(h) Counterparts. This
Agreement may be executed in two or more counterparts, and by different parties hereto on separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. For all purposes a
signature by fax shall be treated as an original.

[Signature Page to Follow]

 

 

 

    
	 	8	 

     

    

 

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

 

	EVAN BEDELL	GLOBE PHOTOS, INC.
	 	 
	/s/ Evan
    Bedell                                  	By: /s/ Stuart Scheinman                                    
	Evan Bedell	       Name : Stuart Scheinman
	 	       Title: CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
	 	9	 

     

    

 

Exhibit A

 

CFO Duties

 

Strategy, Planning and Management

 

Financial Analysis, Budgeting and Forecasting

 

Capital Markets and Investor Relations

 

Mergers and Acquisitions

 

Accounting, General Ledger, Administration and Operations

 

Financial Management

 

Finance and Accounting Team Management

 

Cash Management

 

 

 

 

 

 

 

    
	 	10

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