Document:

EXHIBIT 10.53 

  

PROGREEN US, INC.

2017 EMPLOYEE STOCK OPTION PLAN

  

1.           Purpose

 

The proper execution of the duties and
responsibilities of the executives, directors, and key employees of Progreen US, Inc. (the “Corporation”), as well
as consultants to the Corporation, is a vital factor in the continued growth and success of the Corporation. Toward this end, it
is necessary to attract and retain effective and capable individuals to assume positions and provide services that contribute materially
to the successful operation of the business of the Corporation. It will benefit the Corporation, therefore, to bind the interests
of these persons more closely to its own interests by offering them an attractive opportunity to acquire a proprietary interest
in the Corporation and thereby provide them with added incentive to remain in the service of or provide services to the Corporation
and to increase the prosperity, growth, and earnings of the Corporation. This stock option plan is intended to serve these purposes.

 

2.           Definitions

 

The following terms wherever used herein shall have the meanings
set forth below.

 

“Board of Directors” or “Board”
shall mean the Board of Directors of the Corporation.

 

“Code” shall mean the Internal Revenue
Code of 1986, as amended, and any regulations promulgated thereunder.

 

“Committee” shall mean a committee to
be appointed by the Board of Directors in accordance with Section 4(a) of the Plan.

 

“Common Stock” shall mean the shares
of common stock of the Corporation, including both the voting and non-voting classes of stock.

 

“Corporation” shall mean Progreen
US, Inc., a Delaware corporation.

 

“Employee” shall mean a common
law employee of the Corporation or a Parent or a Subsidiary.

 

“Employment” means periods
during which an Employee qualifies as an Employee.

 

“Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended.

 

“Fair Market Value” of the
Common Stock on any date shall be (a) the average on that date of the high and low prices of a share of Common Stock on the principal
national securities exchange on which shares of Common Stock of the same class are then trading, or, if shares were not traded
on such date, then on the next preceding date on which a trade occurred; or (b) if Common Stock is not traded on a national securities
exchange but is quoted on the National Association of Securities Dealers, Inc. Authorized Quotation System (“NASDAQ”)
or a successor quotation system, the last reported sale price on such date as reported by NASDAQ or such successor quotation system;
or (c) if Common Stock is not traded on a national securities exchange and is not reported on NASDAQ or a successor quotation system,
the closing bid price (or average of bid prices) last quoted on such date by an established quotation service for over-the-counter
securities; or (d) if Common Stock is not traded on a national securities exchange, is not reported on NASDAQ or a successor quotation
system and is not otherwise publicly traded on such date, the fair market value of a share of the same class of Common Stock as
established by the Board of Directors or Committee acting in good faith and taking into consideration all factors which it deems
appropriate, including, without limitation, the Corporation’s net book value and recent sale or offer prices for the Common
Stock in private arm’s-length transactions. During periods when the Fair Market Value of a share of Common Stock cannot be
determined under any of the methods specified in clauses (a), (b) and (c), above, the Board of Directors or Committee shall have
the authority to establish the Fair Market Value of the Common Stock as of the beginning of (or periodically during) each fiscal
year of the Corporation and to use such value for all transactions occurring thereafter within such fiscal year.

 

     

     

    

 

“Immediate Family Member”
shall mean each of (a) the children, step children or grandchildren of the Employee to whom the Option is granted, (b) the spouse
or any parent of the Employee to whom the Option is granted, (c) any trust solely for the benefit of any such family members, and
(iv) any partnership or other entity in which such family members are the only partners or other equity holders.

 

“Incentive Stock Option”
shall mean any Option granted pursuant to the Plan that is designated as an Incentive Stock Option and which satisfies the require¬ments
of Section 422(b) of the Code.

 

“Nonstatutory Stock Option”
shall mean any Option granted pursuant to the Plan that is not an Incentive Stock Option.

 

“Option” or “Stock
Option” shall mean a right granted pursuant to the Plan to purchase shares of Common Stock, and shall include the terms “Incentive
Stock Option” and “Nonstatutory Stock Option”.

 

“Optionee” shall mean an Employee who is granted
an Option under this Plan.

 

“Option Agreement” shall
mean a written agreement representing Options granted pursuant to the Plan, as contemplated by Section 7 of the Plan.

 

“Option Holder” means the
Optionee or, if applicable, the person to whom the Optionee’s rights under the Option Agreement shall have been validly transferred.

 

“Parent” shall mean a “parent
company” of the Corporation, whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

“Plan” shall mean the Progreen
US, Inc. 2017 Employee Stock Option Plan as originally approved by the Board of Directors on May 30, 2017, as embodied in this
document, and as the same may be amended from time to time.

 

“Restricted Share” shall
have the meaning set forth in Section 4(c).

 

“Restricted Stock Award”
shall have the meaning set forth in Section 4(c).

 

“Share” shall mean a share
of the Common Stock of the Corporation that is subject to an Option or Restricted Stock Award, as adjusted in accordance with Section
9 of the Plan.

 

“Subsidiary” shall mean a
“subsidiary corporation” of Corporation or a Parent, whether now or hereafter existing, as defined in Section 424(f)
of the Code.

 

3.           Effective Date
of the Plan

 

The Plan shall become effective upon
stockholder approval pursuant to Section 15 of the Plan, provided that such approval is received before the expiration of one year
from the date the Plan is approved by the Board of Directors, and provided further that the Board of Directors may grant Options
pursuant to the Plan prior to stockholder approval if such Options by their terms are contingent upon subsequent stockholder approval
of the Plan.

 

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4.           Administration

 

(a)         Procedure.

 

(i)       Administration
With Respect to Directors and Officers. With respect to grants of Options to Employees who are also officers or directors of the
Corporation, the Plan shall be administered by (A) the Board, if the Board may administer the Plan in compliance with Rule 16b-3
promulgated under the Exchange Act or any successor thereto (“Rule 16b-3”) with respect to a plan intended to qualify
thereunder as a discretionary plan, or (B) a committee designated by the Board to administer the Plan, which committee shall be
constituted in such a manner as to permit the Plan to comply with Rule 16b-3 with respect to a plan intended to qualify thereunder
as a discretionary plan. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed
by the Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove
members (with or without cause) and appoint new members in substitution therefor, fill vacancies, however caused, and remove all
members of the Committee and thereafter directly administer the Plan, all to the extent permitted by Rule 16b-3 with respect to
a plan intended to qualify thereunder as a discretionary plan.

 

(ii)       Multiple
Administrative Bodies. If permitted by Rule 16b-3, the Plan may be administered by different bodies with respect to directors,
non-director officers and Employees who are neither directors nor officers.

 

(iii)      Administration
With Respect to Other Employees. With respect to grants of Options to Employees who are neither directors nor officers of the Corporation,
the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which committee shall be constituted
in such a manner as to satisfy the legal requirements relating to the administration of incentive stock option plans, if any, of
Delaware corporate and securities laws and of the Code (the “Applicable Laws”). Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the Board. From time to time the Board may increase the
size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer
the Plan, all to the extent permitted by the Applicable Laws.

 

(b)         Powers
of the Board. Subject to the provisions of the Plan, the Board (or the Committee) shall have the authority, in its discretion:
(i) to grant Incentive Stock Options, Nonstatutory Stock Options or Restricted Stock Awards; (ii) to determine, upon review of
relevant information the fair market value of the Common Stock in each class; (iii) to determine the exercise price per Share of
Options to be granted, which exercise price shall be determined in accordance with Section 7(b) of the Plan and the price of Restricted
Shares; (iv) to determine the regular, full-time Employees and non-employee directors or other consultants to whom, and the time
or times at which, Options or Restricted Stock Awards shall be granted and the number of Shares to be represented by each Option
or Restricted Stock Award; (v) to interpret the Plan; (vi) to prescribe, amend and rescind rules and regulations relating to the
Plan; (vii) to determine the rules and provisions of each Option or Restricted Stock Award granted (which need not be identical)
and, with the consent of the holder thereof, modify or amend each Option or Restricted Stock Award; (viii) to accelerate or defer
(with the consent of the Option Holder) the exercise date of any Option, consistent with the provisions of Section 7 of the Plan;
(ix) to authorize any person to execute on behalf of the Corporation any instrument required to effectuate the grant of an Option
or Restricted Stock Award previously granted by the Board or Committee; and (x) to make all other determinations deemed necessary
or advisable for the administration of the Plan.

 

(c)         
Grant of Restricted Stock Awards. The Board or Committee shall have the power to issue a restricted stock award to an Employee
or non-employee director or consultant representing shares of Common Stock (“Restricted Shares”) that are issued subject
to such restrictions on transfer and other incidents of ownership and such forfeiture conditions as the Board or Committee may
determine (“Restricted Stock Awards”). In connection with issuance of any Restricted Shares, the Board or Committee may
(but shall not be obligated to) require the payment of a specified purchase price (which price may be less than Fair Market Value).
Grant of a Restricted Stock Award shall result in a decrease in the number of Shares that thereafter may be available for purposes
of the Plan by the number of Restricted Shares included in the Restricted Stock Award.

 

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(d)       Effect
of Board’s Decision. All decisions, determinations and interpretations of the Board (or the Committee designated by the Board
to administer the Plan) shall be final and binding on all Optionees, Option Holders of any Options and holders of Restricted Stock
Awards under the Plan.

 

5.           Participation
in the Plan

 

(a)       Participation
in the Plan shall be limited to those Employees who are designated for payroll purposes as full-time, permanent employees of the
Corporation and any Parent or Subsidiary and those persons who shall be designated by the Committee and approved by the Board of
Directors as participants in the Plan. The Plan shall not confer upon any Optionee any right with respect to continuation of Employment,
nor shall it interfere in any way with his or her right or the Corporation’s right to terminate his or her employment at
any time, with or without cause.

 

(b)       A
member of the Board of Directors or consultant who is not also an Employee shall be eligible to participate in the Plan but shall
not be eligible to receive Incentive Stock Options hereunder.

 

6.           Stock Subject
to the Plan

 

(a)       Subject
to Section 9 of the Plan, there shall be reserved for the granting of Options pursuant to the Plan and for issuance and sale pursuant
to such Options or Restricted Stock Awards Twenty-Five Million (25,000,000) Shares of Common Stock, par value $.0001 per share.
To determine the number of Shares of either the voting or non-voting class of Common Stock that is available at any time for the
granting of Options, there shall be deducted from the total number of reserved shares of that class of Common Stock, the number
of shares of that class of Common Stock in respect of which Options have been granted pursuant to the Plan that are still outstanding
or have been exer¬cised. The Shares of Common Stock to be issued pursuant to the Plan shall be made available from the authorized
but unissued shares of Common Stock or reacquired Common Stock. If for any reason Shares of Common Stock as to which an Option
has been granted cease to be subject to purchase thereunder, then such Shares of Common Stock again shall (unless the Plan shall
have been terminated) be available for issuance pursuant to the exercise of Options pursuant to the Plan. Notwithstanding any other
provision of the Plan, Shares issued under the Plan and later repurchased by the Corporation shall not become available for future
grant or sale under the Plan.

 

(b)       Proceeds
from the purchase of shares of Common Stock upon the exercise of Options granted pursuant to the Plan or from Restricted Stock
Awards shall be used for the general business purposes of the Corporation.

 

 

7.          Terms and Conditions
of Options

 

(a)       Options
granted hereunder may be either Incentive Stock Options or Nonstatutory Stock Options and may be for the purchase of either voting
or non-voting Common Stock, all as determined by the Board of Directors or Committee at its discretion and as designated in the
terms of the Option Agreement. However, notwithstanding such designations, to the extent that the aggregate fair market value of
the Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee
during any calendar year (under all plans of the Corporation) exceeds $100,000, such Options shall be treated as Nonstatutory Stock
Options. For purposes of the prior sentence, Options shall be taken into account in the order in which they were granted, and the
fair market value of the Shares shall be determined as of the time the Option with respect to such Shares is granted.

 

(b)        The
per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is determined by
the Board of Directors or Committee at the time of the grant, but shall be subject to the following:

 

(i)          In
the case of an Incentive Stock Option:

 

(A)       which
is granted to an Employee who, at the time of the grant of such Incentive Stock Option, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Corporation or any Parent or Subsidiary, the per Share exercise price
shall be no less than 110% of the Fair Market Value per Share on the date of grant.

 

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(B)       which
is granted to any other Employee, the per Share exercise price shall be no less than 100% of the fair market value per Share on
the date of grant.

 

(ii)         In
the case of Nonstatutory Stock Option

 

(A)       which
is granted to a person who, at the time of the grant of such Option, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Corporation or any Parent or Subsidiary, the per Share exercise price shall be as determined
by the Board of Directors or Committee.

 

(B)       granted
to any other person, the per Share exercise price shall be as determined by the Board of Directors or Committee.

 

For purposes of this Section 7(b), in the
event that an Option is amended to reduce the exercise price, the date of grant of such Option shall thereafter be considered to
be the date of such amendment.

 

If the Board of Directors or Committee
does not establish a specific exercise price per share at the time of grant, the exercise price per share shall be equal to the
Fair Market Value of a share of Common Stock on the date of grant of the Options.

 

(c)         Each
Option, subject to the other limitations set forth in the Plan, may extend for a period of up to but not exceeding 10 years from
the date on which it is granted. The term of each Option shall be determined by the Board of Directors or Committee at the time
of grant of the Option and specified in the Option Agreement, provided that if no term is specified by the Board or Committee the
term of the Option shall be the maximum term permitted under this Section measured from the date on which it is granted. Notwithstanding
anything to the contrary, in the case of an Option granted to an Optionee who, at the time the Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the Corporation or any Parent or Subsidiary, (a) if
the Option is an Incentive Stock Option, the term of the Option shall be five (5) years from the date of grant thereof or such
shorter term as may be provided in the Incentive Stock Option Agreement, or (b) if the Option is a Nonstatutory Stock Option, the
term of the Option shall be five (5) years and one (1) day from the date of grant thereof or such shorter term as may be provided
in the Nonstatutory Stock Option Agreement.

 

(d)         The
Board of Directors or Committee may provide in the Option Agreement that the right to exercise each Option for the number of shares
subject to each Option shall vest in the Optionee over such period of time as the Board or Committee, in its discretion, shall
determine for each Optionee.

 

(e)         Options
shall be nontransferable and nonassignable and may not be sold, pledged, assigned, hypothecated, transferred, or disposed in any
manner, except that (1) Options may be transferred by testamentary instrument or by the laws of descent and distribution, and (2)
subject to the terms and conditions of the Option Agreement or any other terms and conditions imposed by the Board of Directors
or Committee from time to time, Options may be transferred in accordance with Section 7(l) of the Plan if the applicable Option
Agreement or other action of the Board or Committee expressly provides that the Options are transferable.

 

(f)         Upon
voluntary or involuntary termination of an Optionee’s active Employment for any reason (including disability), his Option
and all rights there¬under shall terminate effective at the close of business on the date the Optionee ceases to be an active,
regular employee of the Corporation or any of its subsidiaries, except (1) to the extent previously exercised and (2) as provided
in Sections 7 (g), (h), (i) and (j) of the Plan.

 

(g)         In
the event an Optionee takes a leave of absence from the Corpora¬tion or any Parent or Subsidiary for personal reasons or as
a result of entry into the armed forces of the United States, or any of the departments or agencies of the United States government,
the Committee may consider his or her case and may take such action in respect of the related Option Agreement as it may deem appro-priate
under the circumstances in its absolute discretion, including accelerating the time previously-granted Options may be exercised
and extend¬ing the time follow¬ing the Optionee’s termination of Employment during which the Option Holder is entitled
to purchase the Shares of Common Stock subject to such Options, provided that in no event may any Option be exercised after the
expiration of the term of the Option or more than ninety (90) days after the Optionee’s termination of Employment.

 

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(h)         If
an Optionee’s Employment terminates as a result of his or her total and permanent disability (as defined in Section 22(e)(3)
of the Code), the Option Holder may exercise his or her Option within no more than the twelve (12) month period beginning on the
date of his or her termination of Employment (to the extent the Option Holder was entitled to exercise the Option at the date of
the Optionee’s termination of Employment and provided that in no event may any Option be exercised after the expiration of
the term of the Option), after which the Option shall lapse.

 

(i)         If
an Optionee dies during the term of his or her Option without the Option having been fully exercised, the executor or adminis¬trator
of the Optionee’s estate or the person who inherits the right to exercise the Option by bequest or inheritance shall have
the right within one (1) year of the Optionee’s death to purchase the number of Shares of Common Stock that the deceased
Optionee was entitled to purchase at the date of death, after which the Option shall lapse, provided that in no event may any Option
be exercised after the expiration of the term of the Option.

 

(j)         If
an Optionee terminates employment without having fully exercised the Option due to the Optionee’s retirement at or after
age 60 and with the consent of the Corporation, then the Option Holder shall have the right within ninety (90) days of the Optionee’s
termination of Employment to purchase the number of shares of Common Stock that the Option Holder was entitled to purchase at the
date of termina¬tion of the Optionee’s Employment, after which the Option shall lapse, provided that in no event may
any Option be exercised after the expira¬tion of the term of the Option. The Board of Directors or Committee may cancel an
Option during the ninety day period referred to in this paragraph, if the Optionee engages in employment or activities contrary,
in the opinion of the Board or Committee, to the best interests of the Corporation. The Board or Committee shall determine in each
case whether a termination of Employment shall be considered a retirement with the consent of the Corporation, and, subject to
applicable law, whether a leave of absence shall constitute a termination of Employment. Any such determination of the Board or
Committee shall be final and conclusive, unless the Committee is overruled by the Board.

 

(k)         The
granting of an Option pursuant to the Plan shall not constitute or be evidence of any agreement or understanding, express or implied,
on the part of the Corporation or any of its subsidi-aries to retain or employ the Optionee for any specified period.

 

(l)          The
Board of Directors or Committee may provide, in the original grant of a Nonqualified Stock Option or in an amendment or supplement
to a previous grant, that some or all of the Nonqualified Stock Options granted under the Plan are transferable by the Optionee
to an Immediate Family Member of the Optionee, provided that (i) the Option Agreement, as it may be amended from time to time,
expressly so provides or the Board or Committee otherwise designates the Option as transferable, (ii) the transfer by the Optionee
is a bona fide gift without consideration, (iii) the transfer is irrevocable, (iv) the Optionee and any such transferee provides
such documentation or other information concerning the transfer or the transferee as the Board of Directors or Committee or any
Employee of the Corporation acting on behalf of the Board or Committee may from time to time request, and (v) the Optionee or the
Option Holder complies with all of the terms and conditions (including, without limitation, any further restrictions or limitations)
included in the Option Agreement. Any Nonqualified Stock Option transferred in accordance with the terms and conditions provided
in this Section 7(l) shall continue to be subject to the same terms and conditions that were applicable to such Nonqualified Stock
Option prior to the transfer. Notwithstanding any other provisions of the Plan, the Corporation shall not be required to honor
any exercise by an Immediate Family Member of an Option transferred in accordance with the terms and conditions provided in this
Section 7(l) unless and until payment or provision for payment of any applicable withholding taxes has been made.

 

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(m)         In
addition to the general terms and conditions set forth in this Section 7 in respect of Options granted pursuant to the Plan, Incentive
Stock Options granted pursuant to the Plan shall be subject to the following additional terms and conditions:

 

(i)       “Incentive
Stock Options” shall be granted only to individuals who, at the date of grant of the Option, are regular, full-time Employees
of the Corporation or any Parent or Subsidiary;

 

(ii)       No
Employee who owns beneficially more than 10% of the total combined voting power of all classes of stock of the Corporation shall
be eligible to be granted an “Incentive Stock Option”, unless the exercise price per Share is at least 110% of the
Fair Market Value of the Common Stock subject to the Option on the date of grant of the Option and the Option, by its terms, is
not exercisable after the expiration of five years from the date the Option is granted.

 

(iii)      To
the extent that the aggregate fair market value (determined at the time the Option is granted) of the shares of Common Stock in
respect of which an Option is exercisable for the first time by the Optionee during any calendar year (and taking into account
all “incentive stock option” plans of the Corporation and its subsidiaries) exceeds $100,000, that number of whole
shares for which an Option issued hereunder is exercisable with an aggregate fair market value in excess of this $100,000 limit
shall not be treated as having been granted under an “incentive stock option”; and

 

(iv)      Any
other terms and conditions specified by the Committee that are not inconsistent with the Plan, except that such terms and conditions
must be consistent with the requirements for “incentive stock options” under Section 422 of the Code.

 

8.           Methods of Exercise
of Options

 

(a)        An
Optionee (or other Option Holder, if any, entitled to exercise an Option here¬under) desiring to exercise an Option granted
pursuant to the Plan as to all or part of the Shares of Common Stock covered by the Option shall (i) notify the Corporation in
writing at its principal office to that effect, specifying the number of Shares of Common Stock to be purchased and the method
of payment therefor, and (ii) make payment or provision for payment for the shares of Common Stock so purchased in accordance with
this Section 8. Such written notice may be given by means of a facsimile transmission. If a facsimile transmission is used, the
Option Holder should mail the original executed copy of the written notice to the Corporation promptly thereafter. An Option may
not be exercised for as fraction of a share of Common Stock.

 

(b)        The
consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined
by the Board of Directors and may consist entirely of cash, check, promissory note, other shares of Common Stock which (i) either
have been owned by the Option Holder for more than six (6) months on the date of surrender or were not acquired, directly or indirectly,
from the Corporation, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares
as to which said Option shall be exercised, or any combination of such methods of payment, or such other consideration and method
of payment for the issuance of Shares to the extent permitted under the laws of Delaware. In making its determination as to the
type of consideration to accept, the Board shall consider if acceptance of such consideration may be reasonably expected to benefit
the Corporation.

 

(c)        An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Corporation in accordance with
the terms of the Option by the Option Holder and full payment for the Shares with respect to which the Option is exercised has
been received by the Corporation. Full payment may, as authorized by the Board of Directors, consist of any consideration and method
of payment allowable under Section 8(b) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of
the Corporation or of a duly authorized transfer agent of the Corporation) of the stock certificate evidencing such Shares, no
right to vote (in the case of voting stock) or receive dividends or any other rights as a shareholder shall exist with respect
to the optioned Shares, notwithstanding the exercise of the Option. The Corporation shall issue (or cause to be issued) such stock
certificate promptly upon exercise of the Option. In the event that the exercise of an Option is treated in part as the exercise
of a Nonstatutory Stock Option, the Corporation shall issue a separate stock certificate evidencing the Shares of each class treated
as acquired upon exercise of an Incentive Stock Option and a separate stock certificate evidencing the Shares of each class treated
as acquired upon exercise of a Nonstatutory Stock Option, and shall identify each such certificate accordingly in its stock transfer
records. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate
is issued, except as provided in Section 9 of the Plan.

 

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(d)       An
Option Holder at any time may elect in writing to abandon an Option in respect of all or part of the number of Shares of Common
Stock as to which the Option shall not have been exercised.

 

(e)       Exercise
of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes
of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 

9.           Adjustments Upon
Changes in Capitalization or Merger

 

Subject to any required action by the
shareholders of the Corporation, the number of Shares of Common Stock covered by each outstanding Option, and the number of Shares
of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which
have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per Share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares
of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common
Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration
by the Corporation; provided, however, that conversion of any convertible securities of the Corporation shall not be deemed to
have been “effected without receipt of consideration.” Such adjustment shall be made by the Board of Directors, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Corporation
of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by
reason thereof shall be made with respect to, the number or price of Shares of Common Stock subject to an Option.

 

In the event of the proposed dissolution,
liquidation or sale of all or substantially all of the assets of the Corporation, the Board shall notify the Optionee or other
Option Holder at least fifteen (15) days prior to such proposed action. To the extent it has not been previously exercised, the
Option will terminate immediately prior to the consummation of such proposed action. In the event of the merger of the Corporation
with or into another corporation, the Option shall be assumed or an equivalent option shall be substituted by such successor corporation
or a parent or subsidiary of such successor corporation, unless such successor corporation does not agree to assume the Option
or to substitute an equivalent option, in which case the Board shall, in lieu of such assumption or substitution, provide for the
Option Holder to have the right to exercise the Option as to all of the optioned Shares, including Shares as to which the Option
would not otherwise be exercisable. If the Board makes an Option fully exercisable in lieu of assumption or substitution in the
event of a merger or sale of assets, the Board shall notify the Optionee or other Option Holder that the Option shall be fully
exercisable for a period of fifteen (15) days from the date of such notice, and the Option will terminate upon the expiration of
such period.

 

10.         Time of Granting
Options

 

The date of grant of an Option shall,
for all purposes, be the date on which the Board of Directors or Committee makes the determination granting such Option. Notice
of the determination shall be given to each Optionee within a reasonable time after the date of such grant.

 

11.         Amendments and
Discontinuance of the Plan

 

(a)       The
Board of Directors shall have the right at any time and from time to time to amend, modify, or discontinue the Plan in such respects
as the Board may deem advisable; provided that, unless approved by the Corporation’s shareholders in accordance with Section
15, no such amendment, modification, or discon¬tinuance of the Plan shall (i) revoke or alter the terms of any valid Option
previously granted pursuant to the Plan, (ii) increase the number of shares of Common Stock to be reserved for issuance and sale
pursuant to Options granted pursuant to the Plan, (iii) change the maximum aggregate number of shares of Common Stock that may
be issued upon the exercise of Options granted pursuant to the Plan to any single individual, (iv) decrease the price determined
pursuant to the provisions of Section 7(b), (v) change the class of persons to whom Options may be granted pursuant to the Plan,
(vi) provide for Options exercisable more than 10 years after the date granted, (vii) if the Corporation has a class of equity
securities registered under Section 12 of the Exchange Act at the time of such revision or amendment, any material increase in
the benefits accruing to participants under the Plan.

 

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(b)       Shareholder
Approval. If any amendment requiring shareholder approval under Section 15(a) of the Plan is made at a time when any class of equity
securities by the Corporation is registered under Section 12 of the Exchange Act, such shareholder approval shall be solicited
as described in Section 15 of the Plan.

 

(c)       Effect
of Amendment or Termination. Any such amendment or termination of the Plan shall not affect Options already granted and such Options
shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between
the Optionee or other Option Holder and the Board of Directors, which agreement must be in writing and signed by the Option Holder
and the Corporation.

 

12.         Plan Subject
to Governmental Laws and Regulations

 

The Plan and the grant and exercise of
Options and grant of Restricted Stock Awards pursuant to the Plan shall be subject to all applicable governmental laws and regulations.
Notwithstanding any other provision of the Plan to the contrary, the Board of Directors may in its sole and absolute discretion
make such changes in the Plan as may be required to conform the Plan to such laws and regulations. Shares shall not be issued pursuant
to the exercise of an Option or Restricted Shares pursuant to a Restricted Stock Award unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto or the issuance of the Restricted Shares pursuant to the Restricted Stock
Award shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended,
the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares
may then be listed, and shall be further subject to the approval of counsel for the Corporation with respect to such compliance.

 

As a condition to the exercise of an
Option or issuance of Restricted Shares pursuant to a Restricted Stock Award, the Corporation may require the person exercising
such Option or receiving such Restricted Shares to represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel
for the Corporation, such a representation is required by any of the aforementioned relevant provisions of law.

 

13.         Reservation
of Shares

 

The Corporation, during the term of this
Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of
the Plan.

 

The inability of the Corporation to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by the Corporation’s counsel to be necessary
to the lawful issuance and sale of any Shares hereunder, shall relieve the Corporation of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

14.         Option Agreements
and Restricted Stock Awards

 

Options and Restricted Stock Awards shall
be evidenced by written option or restricted stock award agreements in such form as the Committee shall determine from time to
time.

 

15.         Shareholder
Approval

 

(a)       Continuance
of the Plan shall be subject to approval by the shareholders of the Corporation within twelve (12) months before or after the date
the Plan is adopted.

 

(b)       The
required approval of the shareholders of the Corporation shall be solicited substantially in accordance with Section 14 of the
Exchange Act and the rules and regulations promulgated thereunder.

 

16.         Term of Plan

 

The Plan shall become effective upon
the earlier to occur of its adoption by the Board of Directors or its approval by the shareholders of the Corporation as described
in Section 15 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 11 of
the Plan.

 

 

[The remainder of this page is intentionally
blank.]

 

 

9mgbr_102.htm

EXHIBIT 10.2 

 

 ASSET ASSIGNMENT AGREEMENT

 

This ASSET ASSIGNMENT AGREEMENT (“Agreement”) is entered into as of June 28th , 2017 (the “Effective Date”) by and among Mega Bridge Inc., a Nevada corporation (“MB”), and Richard L. Chang Holding’s, LLC, a Nevada limited liability company (“Holdings LLC”).

 

WHEREAS, MB is an audited and fully reporting public company incorporated under the laws of the State of Nevada;

 

WHEREAS, MB desires to acquire certain assets of Holdings LLC, and Holdings LLC desire to assign such assets to MB; and

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as follows:

 

1. Assignment of Assets.

 

a. Assignment. Holdings LLC has a 100% ownership interest in United States Utility Patent Application No. 62/420,177 filed on November 10, 2016 (the “Patent Application”), titled “COMPOSITIONS AND METHODS OF USE OF PHORBOL ESTERS FOR THE TREATMENT OF PARKINSON’S DISEASE” and all related intellectual property, inventions and trade secrets, data, and clinical study results, and Holdings LLC owns all indicated intellectual property, inventions and trade secrets, data, and clinical study results thereof worldwide (collectively, with the Patent Application, the “Patent Assets”). Holdings LLC represents and warrants that Richard L. Chang has assigned all rights, title and interest in the Patent Assets to Holdings LLC. MB shall take all steps and pay all costs to timely protect the Patent Assets. Rich Pharmaceuticals, Inc. (“Rich”) has been granted permission by the U.S. Food and Drug Administration (“FDA”) to conduct a clinical trial under an Investigational New Drug Application (“IND”) for 12-O-Tetradecanoyl-phorbol-13-acetate (TPA); RP-323 and Holdings LLC represents that the IND may be utilized to conduct a clinical study in Parkinson’s disease using RP-323. Holdings LLC shall arrange for MB to utilize the IND pursuant to an agreement (the “MB/Rich Agreement”) to be entered into between MB and Rich within sixty (60) days after the date of this Agreement. The MB/Rich Agreement shall provide that the consideration to be paid by MB to Rich for the use of the IND shall be 15,000,000 shares of MB common stock and $100,000, of which 5,000,000 shares will be distributed to the shareholders of Rich.

 

b. In exchange for the consideration described in Section 2a below, Holdings LLC hereby agrees to assign to MB all of their right, title and interest in and to the Patent Assets and IND to conduct a clinical study in Parkinson’s disease using RP-323, and in and to all rights to apply for continuations, additional applications or foreign patents relating to the Patent Assets and all proceeds of the foregoing, including, without limitation, any claim by Holdings LLC against third parties for past, present, or future infringement of the Patent Assets.

 

 

	 
	1
	

 
	 

 

c. Further Assurances; Data and Discoveries. Holdings LLC agrees to, and to cause the patent inventor to, cooperate with MB to enable it to enjoy to the fullest extent the right, title and interest herein conveyed in the Patent Assets in the United States and foreign countries. Such cooperation shall include prompt production of pertinent facts and documents, giving of testimony, execution of petitions, oaths, specifications, executing USPTO assignment documents in favor of MB, declarations or other papers, and other assistance all to the extent deemed necessary or desirable by MB (a) for perfecting in the right, title and interest in the Patent Assets; (b) for prosecuting any of the patent applications; (c) for filing and prosecuting substitute, divisional, continuing or additional applications; (d) for filing and prosecuting applications for reissuance of any patents; (e) for interference or other priority proceedings; and (f) for legal proceedings involving the Patent Assets and any applications therefor and any patents granted thereon; provided, however, that the expense incurred by Holdings LLC in providing such cooperation shall be paid for by MB.

 

d. This Agreement expressly grants to MB all rights in the Patent Assets as fully and entirely as the same would have been held and enjoyed by Holdings LLC. Within thirty (30) days after the Effective Date, Holdings LLC and MB shall enter into an agreement providing for the sharing of data derived from the Patent Assets and the ownership by Holdings LLC of all new discoveries related to the Patent Assets.

 

e. Recordation. Without limiting the generality of the foregoing, Holdings LLC agrees that within ten days after the Effective Date, it shall execute a Recordation Form Cover Sheet for recording the assignment in the USPTO. To the extent that the patent laws of any country require the recordation or registration of this Agreement to ensure the continued validity and enforceability of the Patent Assets or this Agreement in connection with the assignment, Holdings LLC shall take whatever action is necessary to record or obtain registration of this Agreement, including the filing of all necessary documents.

 

f. Indemnity. MB shall indemnify and defend Holdings LLC and its members, managers and representatives against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all losses or expenses incurred or sustained by, or imposed upon, any of them based upon, arising out of, with respect to or by reason of and claims or litigation brought by a third party arising out of or related to the Patent Assets or this Agreement.

 

g. Assignment of Additional Assets. Within ten (10) days after the date which MB has received a minimum of $1,000,000 in equity financing gross proceeds (not including the amount described in Paragraph 2a (i) below), Holdings LLC shall assign to MB United States Utility Patent Application No. 15/385,862 filed on December 20, 2016 titled “COMPOSITIONS AND METHODS OF USE OF PHORBOL ESTERS FOR THE TREATMENT OF STROKE” and such assets shall be part of the “Patent Assets” and IND described herein.

 

2. Consideration; Right of Reversion.

 

a. Consideration. In consideration of the assignment of the Patent Assets and IND by Holdings LLC, MB shall provide the following consideration:

 

	
 
	(i)	MB shall have a minimum of $400,000 in its bank account on the Effective Date;
	
 
	
 
	
 

	
 
	(ii)	MB shall have no liabilities or payables to any third party on the Effective Date, other than the two convertible promissory notes in the principal amount of $100,000 payable to Bakken Development LLC each which are being amended as of the date of this Agreement, and one convertible promissory note in the principal amount of $400,000 payable to Bakken Development LLC which is being executed as of the date of this Agreement;

 

	 
	2
	

 
	 

 

	
 
	(iii)	MB shall issue the shares of common stock, and reserve shares for issuance under an option plan, in the numbers and to the shareholders as described on Exhibit A attached hereto (such shares to be issued within 10 days after the Effective Date and upon the execution of such agreements as mutually agreed upon between MB and the recipients);
	
 
	
 
	
 

	
 
	(iv)	MB shall issue warrants of common stock in the numbers and to the warrant holders as described on Exhibit B attached hereto; and
	
 
	
 
	
 

	
 
	(v)	Holdings LLC shall be issued 2,000,000 restricted, non-convertible, non-dividend paying shares of MB preferred stock with 1000 to 1 voting rights (the “Preferred Stock”) over shares of MB common stock (such shares to be issued within 10 days after the Effective Date). The Preferred Shares Certificate shall be held in Escrow by David Price, Esq., 833l Spring Court, Bethesda, Maryland 20817, Tel: 1202.536.5191, David@TopTier.eu to be released as follows: (a) In the event there IS a Right of Reversion, Holdings shall reissue and deliver the Preferred Shares Certificate to Apica Investments Limited and/or its assignees (b) In the event there is NO Right of Reversion by date set forth in paragraph 2b, the Preferred Shares Certificate shall be returned to Holdings. All voting rights for the Preferred Shares while in escrow shall be granted to Holdings.

 

b. Right of Reversion. If MB fails to receive a minimum of $1,000,000 in equity financing gross proceeds (not including the amount described in Paragraph 2(i) above) by June 28th , 2018, then upon written notice by Holdings LLC describing such failure, all of the Patent Assets shall be assigned by MB back to Holdings LLC free and clear of any liens, claims, security interests or encumbrances, and MB shall execute any and all requested assignment documents evidencing such assignment, and to provide such cooperation as required of MB described in Section 1 above. The Patent Assets to be assigned back shall include any and all additions, improvements, continuations, derivations, intellectual property, inventions, trade secrets, data, and clinical study results relating to the Patent Assets development during such period. If Holdings LLC exercises the right of reversion set forth in this Paragraph 2b, then Holdings LLC shall assign to Apica Investments Limited and/or its assignees all of the shares of Preferred Stock issued to Holdings as described in Paragraph 2a(iv) above.

 

c. Management of MB. As of the Effective Date of this Agreement, (i) the sole director of MB shall appoint Dr. McCoy Moretz as the Chief Executive Officer, Chief Medical Officer and Chairman of the Board of Directors of MB, and shall appoint Richard Chang as a director; and (ii) the current sole director and officer of MB shall remain as a Board Member, and CFO until his resignation effective as of June 30, 2017.

 

	 
	3
	

 
	 

 

3. Representations and Warranties.

 

a. Reciprocal. Each of the parties represents and warrants to the other party that (a) it has full right, power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, (b) this Agreement is a legal and valid obligation binding upon such party and enforceable in accordance with its terms, (c) the execution, delivery and performance of the Agreement by such party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, nor to such party’s knowledge, violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it; (d) in connection with the issuance of restricted shares of MB common stock, each party acknowledges that the shares have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends on, among other things, the bona fide nature of the investment intent and the accuracy of its, his or her representations made with respect to the investment, and that the shares will be restricted securities within the meaning of the Securities Act and may not be transferred unless registered or an exemption from registration is available; and (e) in connection with the issuance of the shares of MB common stock, each party represents and warrants that it is an “accredited investor” within the meaning of Rule 501 of Regulation D of the Securities Act.

 

b. MB. MB represents and warrants to Holdings LLC that as of the Effective Date, (i) MB has 5,000,000 shares of common stock outstanding; no shares of preferred stock outstanding; and no convertible securities (other than described in 2.a(ii) above), options or warrants are issued are outstanding; and (ii) there is only one officer and director of MB.

 

c. Holdings LLC. Holdings LLC hereby represents and warrants to MB the following:

 

	
 
	(i)	Holdings LLC is the sole and exclusive owner of all rights, title and interest in the Patent Assets;
	
 
	
 
	
 

	
 
	(ii)	The Patent Assets are free and clear of any liens, license rights (except as set forth in this Agreement), security interests, encumbrances or rights to repurchase;
	
 
	
 
	
 

	
 
	(iii)	Holdings LLC has not assigned, transferred, licensed, pledged or otherwise encumbered any of the Patent Assets or agreed to do so;
	
 
	
 
	
 

	
 
	(iv)	Holdings LLC is not aware of any violation, infringement or misappropriation of any third party’s rights (or any claim thereof) concerning the Patent Assets;
	
 
	
 
	
 

	
 
	(v)	The Patent Assets are properly filed and currently in compliance with formal legal requirements (including, without limitation, payment of filing, examination and governmental taxes and maintenance fees) and enforceable;
	
 
	
 
	
 

	
 
	(vi)	Holdings LLC is not aware of any questions or challenges with respect to the patentability or validity of any claims of any existing patents or patent applications relating to the Patent Assets; and
	
 
	
 
	
 

	
 
	(vii)	Holdings LLC has paid any annuity, renewal, or administrative fee related to the Patent Assets before the execution of this Agreement.

 

4. Arbitration. In the event of any controversy among the parties hereto arising out of, or relating to, this Agreement, which cannot be settled amicably by the parties, such controversy shall be settled by Arbitration. Both sides shall choose a mutually agreed upon competent jurist from a short list and informal Arbitration shall commence as expeditiously as possible. Either party may institute such arbitration proceeding by giving written notice to the other party. A hearing shall be held by the Arbitrator within 20 miles of Los Angeles, California, and a decision of the matter submitted to the Arbitrator shall be biding and enforceable against all parties in any Court of competent jurisdiction. The prevailing party shall be entitled to all costs and expenses with respect to such arbitration, including reasonable attorneys’ fees. The decision of the Arbitrator shall be final, binding upon all parties hereto and enforceable in any Court of competent jurisdiction. Each party hereto irrevocably waives any objection to the laying of venue of any such Arbitration action or proceeding brought and irrevocably waives any claim that any such action brought has been brought in an inconvenient forum. Each of the parties hereto waives any right to request a trial by jury in any litigation with respect to this agreement and represents that counsel has been consulted specifically as to this waiver. This Agreement shall be governed by and construed under the laws of the State of Nevada.

 

	 
	4
	

 
	 

 

5. Transaction Expenses. The parties agree that each party shall be solely responsible for the payment of all transaction expenses incurred by such party relating to the transactions contemplated in this Agreement.

 

6. Attorneys’ Fees. In the event either party shall bring any action to enforce or protect any of its rights under this Agreement, the prevailing party shall be entitled to recover, in addition to its damages, its reasonable attorneys’ fees and costs incurred in connection therewith.

 

7. Execution in Counterparts. This Agreement may be executed in one or more counterparts which may be delivered by facsimile or by email in PDF, each of which shall be considered an original instrument, but all of which shall be considered one and the same Agreement.

 

8. Binding Agreement. The parties intend for this Agreement to constitute binding, enforceable obligations of the parties.

 

9. Entire Agreement; Modifications; Miscellaneous. Except as otherwise provided herein, this Agreement represents the entire understanding among the parties with respect to the subject matter of this Agreement, and this Agreement supersedes any and all prior and contemporaneous understandings, agreements, plans, and negotiations, whether written or oral, with respect to the subject matter hereof. All modifications to the Agreement must be in writing and signed by each of the parties hereto. This Agreement shall be construed neutrally, without regard to the party responsible for its preparation.

 

10. Legal Counsel. Each party to this Agreement hereby represents and warrants to the other party that it has its own legal counsel and it has been advised by its legal counsel with respect to the provisions of this Agreement, and that its decision to execute this Agreement is not based on any reliance upon the advice of any other party or legal counsel other than its own legal counsel.

  

IN WITNESS WHEREOF, the undersigned have caused their authorized representatives to execute this Agreement as of the date first set forth above.

 

	MEGA BRIDGE, INC.	
	 	 	 
	By:	  	
	
 
	Antonio Treminio, CEO	 
	
 
	
 
	
 

	
 
	
 
	
 

	
RICHARD L. CHANG’S HOLDINGS, LLC
	
 

	
 
	
 
	
 

	
By:
	

	
 

	
 
	Richard L. Chang, Sole Member and Manager	
 

 

	 
	5
	

 
	 

 

 

 

 

 

 

[Signature Page to ME/Holdings LLC Assignment Agreement]

 

 

 

 

 

	 
	6
	

 
	 

 

Exhibit A

 

 

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Shareholder to Be Issued Shares Within 2 days
after the Effective Date
	
 
	
 Shares of Common Stock
	
 

	
 
	
Shares of Common Stock outstanding as of Effective Date 
	
 
	
 
	
 
	
 
	5,000,000	
 

	
 
		
 
	
Holdings LLC and/or its assignees 
	
 
	
 
	60,000,000	
 

	
 
		
 
	
Officers, Directors, Employees, and/or Consultants as determined by Holdings LLC 
	
 
	
 
	28,000,000	
 

	
 
		
 
	
Stock Option Pool (reserved) 
	
 
	
 
	22,000,000	
 

	
 
		
 
	
Brighton Capital, Ltd. and/or its assignees 
	
 
	
 
	6,000,000	
 

	
 
		
 
	
Rafferty Finance S.A. 
	
 
	
 
	5,000,000	
 

	
 
		
 
	
Apica Investments Limited and/or its assignees 
	
 
	
 
	15,000,000	
 

	
 
		
 
	
TOTAL TO BE ISSUED 
	
 
	
 
	137,000,000	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
		
 
	
TOTAL OUTSTANDING 
	
 
	
 
	141,000,000	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

	 
	7
	

 
	 

 

Exhibit B

 

	
 
	
 
	
 
	
 
	
 

	
 
	
Warrant Holder to Be Issued Warrants Within 10 days after the Effective Date
	
 
	
Warrants
	
 

	
 
	
Brighton Capital, Ltd. and/or it assignees
	
 
	
 
	10,000,000	
 

	
 
	
Rafferty Finance S.A.
	
 
	
 
	10,000,000	
 

	
 
	
Apica Investments Limited and/or it assignees
	
 
	
 
	10,000,000	
 

	
 
	
Imagic, LLC and/or his assignees
	
 
	
 
	10,000,000	
 

	
 
	
Dr. McCoy Moretz and/or his assignees
	
 
	
 
	10,000,000	
 

	
 
	
SD Law Group and/or its assignees
	
 
	
 
	10,000,000	
 

	
 
	
TOTAL TO BE ISSUED
	
 
	
 
	60,000,000	
 

	
 
	
TOTAL WARRANTS OUTSTANDING
	
 
	
 
	60,000,000	
 

	
 
	
 
	
 
	
 
	
 
	
 

 

 

	8

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