Document:

Exhibit 4.26

 

	 	 
	 	 
	 	Execution Version

 

DATED
AS OF ___29 May__________ 2015

 

LATAM
AIRLINES GROUP S.A.

 

and

 

MAPLESFS
LIMITED

 

 

 

PUT
OPTION AGREEMENT

 

 

 

     

     

    

 

THIS AGREEMENT is dated as of ___29
May_______ 2015

 

BETWEEN:

 

		(1)	LATAM AIRLINES GROUP S.A. (formerly having the legal name LAN Airlines S.A. and doing business
as LAN Airlines), a corporation organised and existing under the laws of the Republic of Chile and having its registered
office at Edificio Huidobro, Avenida Presidente Riesco 5711, Piso 20, Las Condes, Santiago, Chile ("Seller");
and

 

		(2)	MAPLESFS LIMITED, a company
incorporated in the Cayman Islands, whose principal office is at PO Box 1093, Boundary Hall, Cricket Square, Grand Cayman, KY1-1102,
Cayman Islands not in its individual capacity but solely in its capacity as trustee under the Declaration of Trust dated on or
about the date hereof (the "Buyer").

 

THE PARTIES AGREE as follows:

 

		1.	definitions and INTERPRETATION

 

		1.1	In this Agreement capitalised terms and expressions shall, unless the context otherwise requires,
have the respective meanings given to them Annex A of the Note Purchase Agreement (including definitions incorporated therein
by cross-references to other documents). In addition, the following words and expressions shall, unless the context otherwise requires,
have the following respective meanings:

 

"Call Option Notice"
has the meaning ascribed to the term "Option Notice" in the Call Option Agreement;

 

"Company" means
Canastero Leasing Limited, an exempted company incorporated in the Cayman Islands, whose registered office is at P.O. Box 309,
Ugland House, Grand Cayman, KY1-1104, Cayman Islands;

 

"Completion"
means completion of the exercise of the option to sell the Option Shares in accordance with this Agreement;

 

"Completion Date"
means January 5, 2022, or if such date is not a Business Day, the next succeeding Business Day, or such later Business Day as the
Seller and the Buyer may (with the prior written consent of the Loan Trustee) agree from time to time;

 

"Note Purchase Agreement"
means the note purchase agreement, dated as of May 29 2015, among LATAM, the Owner, each Related Owner, the Subordination Agent,
the Escrow Agent, the Paying Agent, and the Pass Through Trustee under each Pass Through Trust Agreement, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its terms;

 

"Option" means
the right granted to the Seller by Section 2;

 

"Option Notice"
means the written notice in the form set out in the schedule from the Seller to the Buyer exercising the Option pursuant to Section 3.1.2;

 

"Option Price"
means the amount specified in Section 2.2; and

 

    	 	- 1-	 

     

    

 

"Option Shares"
means 100 fully-paid ordinary shares of $1 of the Company and registered in the Seller's name, representing the whole of the issued
share capital of the Company as of the date hereof.

 

		1.2	In this Agreement, a reference to a clause, paragraph or schedule, unless the context otherwise
requires, is a reference to a clause or paragraph of, or schedule to, this Agreement.

 

		1.3	The headings in this Agreement do not affect its interpretation.

 

		2.	GRANT OF PUT OPTION TO seller

 

		2.1	The Buyer irrevocably grants to the Seller an option to sell, and to require the Buyer to buy,
all of the Option Shares.

 

		2.2	The purchase price of the Option (the "Option Price") is one dollar ($1), receipt of
which the Buyer acknowledges.

 

		2.3	The Option Shares shall be sold free from any Liens other than Permitted Liens which are created
by or pursuant to or arise under the terms of the Call Option Agreement or the Charge over Shares (Owner Parent) and with all rights
attaching to the Option Shares at the Completion Date.

 

		3.	EXERCISE OF OPTION

 

		3.1	The Option may be exercised only:

 

		3.1.1	in whole and not in part; and

 

		3.1.2	by the delivery by the Seller to the Buyer, with a copy to the Loan Trustee, of the Option Notice
at any time on or prior to July 5, 2021;

 

		3.1.3	if:

 

		(a)	the Loan Trustee has not served a Call Option Notice pursuant to the Call Option Agreement at any
time before Completion;

 

		(b)	the Loan Trustee has not exercised its rights under the Charge over Shares (Owner Parent); or

 

		(c)	the conditions to transfer of the Option Shares set forth in Section 5.02 of the Call Option Agreement
have been satisfied or waived by the Loan Trustee.

 

		3.2	The Seller may only revoke the Option Notice with the Buyer's consent.

 

		3.3	The Option Notice shall be deemed to have been revoked and not having been given in the event,
and without further action being required by the Seller or the Buyer, if:

 

		3.3.1	the Loan Trustee serves a Call Option Notice pursuant to the Call Option Agreement at any time
before Completion; or

 

		3.3.2	the Loan Trustee exercises its rights under Clause 8.1(e) of the Charge over Shares (Owner Parent);
or

 

    	 	- 2-	 

     

    

 

		3.3.3	the conditions to transfer of the Option Shares set forth in Section 5.02 of the Call Option Agreement
are not satisfied or waived by the Loan Trustee.

 

		4.	COMPLETION

 

		4.1	Completion shall take place by 3.00 p.m. (Cayman Islands time) on the Completion Date at the Company's
registered office, or at another place agreed by the Seller and the Buyer.

 

		4.2	At Completion:

 

		4.2.1	the Seller shall give to the Buyer a duly completed transfer of the respective Option Shares in
favour of the Buyer (or as it directs), signed letters of resignation of each of the then directors of the Company who are nominees
of the Seller containing confirmation by each such director that there are no sums due and owing to such director by the Company
and that such director unconditionally waives any and all claims it may have against the Company and written confirmation from
an officer of the Seller that each of the representations and warranties contained in Sections 5.1 and 5.2 remain true and accurate
on the date of Completion.

 

		4.2.2	the Seller shall sign all documents and take all other action necessary to enable the Buyer (or
its nominee) to become the registered and beneficial owner of the Option Shares;

 

		4.2.3	the Buyer shall pay the Option Price to the Seller in the respective amount set out in Section
2.2; and

 

		4.2.4	on the Effective Date (as defined in the Charge Over Shares (Put & Call Trustee)), the Buyer
shall sign all documents and take all other action necessary to give effect to the Charge Over Shares (Put & Call Trustee)
and to preserve the security which the Buyer shall grant to the Loan Trustee under the Charge Over Shares (Put & Call Trustee).

 

		4.3	With effect from the Completion Date:

 

		4.3.1	The Seller, in its capacity as shareholder only, hereby irrevocably and unconditionally releases
the Company from any and all claims and causes of action, howsoever arising, that the Seller has ever had, now has, or may hereafter
have against the Company as a result of or in relation to any act, matter, cause or thing existing or arising up to and including
the Completion Date, provided that, for the avoidance of doubt, it is confirmed that the foregoing release shall not include any
release of any claims or causes of action that the Seller may have had, now has, or may hereafter have against the Company, pursuant
to any of the Operative Documents; and

 

		4.3.2	The Seller undertakes to the Buyer that it will on demand indemnify the Buyer for any loss suffered
or incurred by the Buyer as a result of or in relation to any act, matter, thing or circumstance constituting a breach of the representations
and warranties set out at Sections 5.1 and 5.2.

 

    	 	- 3-	 

     

    

 

		4.4	The parties to this Agreement hereby expressly agree that Completion shall not occur if the representations
and warranties contained in Section 5 are incorrect as at Completion.

 

		5.	representations and warranties

 

		5.1	The Seller hereby provides the following representations to the Buyer as at the date hereof and
as at Completion:

 

		5.1.1	the Seller has duly authorized, executed and delivered this Agreement and this Agreement constitutes
the Seller's direct, general and unconditional obligation which is legal, valid and binding upon it and is enforceable against
it in accordance with its terms (except as the enforceability thereof may be limited by applicable bankruptcy or other similar
laws affecting creditors' rights generally and by general principles of equity);

 

		5.1.2	the execution, delivery and performance of this Agreement by the Seller is not in violation of
the Seller's constitutive documents, or any other instrument or agreement to which it is a party or to which any of its property
or assets may be subject, and will not conflict with, violate or result in a breach of any law, regulation, order or decree applicable
to it and the Seller is entitled to sell and transfer its holding of the Option Shares to the Buyer on the terms set out in this
Agreement; and

 

		5.1.3	the execution and delivery by the Seller of this Agreement and the consummation by it of the transactions
contemplated by this Agreement do not require the consent or approval of, the giving of notice to, or the registration or filing
with, or the taking of any other action in respect of, any court or governmental agency or body.

 

		5.2	The Seller hereby provides the following representations to the Buyer as at Completion:

 

		5.2.1	the Company is validly existing and in good standing under the laws of the Cayman Islands;

 

		5.2.2	no resolution of the Company’s shareholder has been passed other than as annexed to its Memorandum
and Articles and the resolutions dated 14 May 2015 and the Company has at all times carried on its business and affairs in all
respects in accordance with its Memorandum and Articles, the Operative Documents to which it is a party from time to time;

 

		5.2.3	the Registered Office Agreement dated on or about the date hereof between the Company and Maples
Corporate Services Limited (the “Registered Office Agreement”) remains in full force and effect and has not been terminated
and the Company is in full compliance with its obligations under the Registered Office Agreement;

 

		5.2.4	no order has been made or petition presented or resolution passed for the winding up of the Company,
no receiver or administrator or administrative receiver has been appointed or could lawfully be appointed by any person over the
business or assets of the Company and the Company is neither insolvent nor unable to pay its debts as they fall due and the Company
is not engaged in and so far as the Seller is aware there are no circumstances likely to lead to the Company becoming engaged in
any legal proceedings (civil or criminal) or arbitration;

 

    	 	- 4-	 

     

    

 

		5.2.5	the Company is not a party to any agreements other than the Operative Documents to which it is
a party from time to time and there have been no amendments or variations to the terms of the Operative Documents which materially
affect the obligations of the Company or which affect in a material manner the provisions of the Operative Documents, other than
as disclosed to the Buyer prior to Completion;

 

		5.2.6	the Company has all necessary licences (including statutory licences), permits, consents, approvals
and authorisations (public and private) for the proper and effective carrying on of the business contemplated by the Operative
Documents and all such licences, permits, consents, approvals and authorisations are valid and subsisting and have been and are
being complied with and the Seller knows of no reason why any of them should be suspended, cancelled or revoked whether in connection
with the sale of the Option Shares to the Buyer or otherwise;

 

		5.2.7	no Event of Default shall have occurred and be continuing at the date of Completion; and

 

		5.2.8	the Seller is the sole legal and beneficial owner of the Option Shares free from any Lien other
than Permitted Lien which are created by or pursuant to or arise under the terms of the Call Option Agreement or the Charge over
Shares (Owner Parent).

 

		6.	Covenant

 

The Buyer undertakes that in
the event of the Option Shares being transferred to it, the Buyer shall thereafter perform and observe each of the undertakings
of the Seller set forth in Section 4 of the Call Option Agreement as if it was the Seller.

 

		7.	GENERAL

 

		7.1	A variation or amendment of this Agreement is valid only if it is in writing and signed by or on
behalf of each party and approved by the Loan Trustee in writing.

 

		7.2	Except to the extent that they have been performed and except where this Agreement provides otherwise
the obligations contained in this Agreement remain in force after Completion.

 

		8.	ASSIGNMENT

 

		8.1	A party may not (and may not purport to) assign or transfer or declare a trust of the benefit of
or in any other way alienate any of its rights under this Agreement in whole or in part without having first obtained the other
party's written consent and the written consent of the Loan Trustee.

 

		8.2	.

 

    	 	- 5-	 

     

    

 

		9.	NOTICES

 

		9.1	A notice or other communication under or in connection with this Agreement (a "Notice")
shall be:

 

		9.1.1	in writing;

 

		9.1.2	in the English language; and

 

		9.1.3	delivered personally or sent by air-mail or by fax to the party due to receive the Notice to the
address set out in Section 9.3 or to another address, person or fax number specified by that party by not less than seven
(7) days' written notice to the other party received before the Notice was despatched.

 

		9.2	Unless there is evidence that it was received earlier, a Notice is deemed given if:

 

		9.2.1	delivered personally, when left at the address referred to in Section 9.1.3;

 

		9.2.2	sent by air mail, ten (10) Business Days after posting it; and

 

		9.2.3	sent by fax, when confirmation of its transmission has been recorded by the sender's fax machine.

 

		9.3	The address referred to in Section 9.1.3 is:

 

	Name of 

party	 	Address	 	Fax No.	 	Marked for the 

attention of
	 	 	 	 	 	 	 
	
        Seller
	 	
        Edificio Huidobro, Avenida Presidente Riesco
        Piso 20, Las Condes, Santiago, Chile

         

        With a copy to: GrupoTesoreriaPagosChile_2@lanchile.com
	 	
        +56 22 565 8764
	 	
        Senior Vice President Corporate
Finance/General Counsel

	 	 	 	 	 	 	 
	The Buyer	 	
        P.O. Box 1093, Queensgate House,

        Grand Cayman KY1-1102, Cayman Islands
	 	+1 345 945 7100	 	Phillip Hinds

 

		9.4	For the purposes of this Agreement, any Notice given or received on a non-Business Day will be
deemed to have been given or received (as the case may be) on the next succeeding Business Day.

 

		10.	GOVERNING
                                         LAW AND JURISDICTION

 

		10.1	THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEW YORK, UNITED STATES OF AMERICA.

 

    	 	- 6-	 

     

    

 

		11.	COUNTERPARTS

 

This Agreement may be executed
in any number of counterparts, each of which when executed and delivered is an original and all of which together evidence the
same agreement.

 

    	 	- 7-	 

     

    

 

THE SCHEDULE

 

FORM OF OPTION NOTICE

 

		To:	MaplesFS
Limited,

P.O. Box 1093

Queensgate House

Grand Cayman KY1-1102

Cayman Islands

 

Attention: Phillip Hinds

 

Copy to:          Wilmington Trust Company, not
in its individual capacity but solely as Loan Trustee

[●]

 

Attention: [●]

 

	Date:	 	 

 

OPTION NOTICE

 

		1.	We refer to the Put Option Agreement dated as of [•] 2015 between LATAM Airlines Group S.A.
and MaplesFS Limited (the "Put Option Agreement").

 

		2.	Terms defined in the Put Option Agreement shall have the same meanings in this Option Notice unless
the context requires otherwise. References to a clause are to a clause of the Put Option Agreement.

 

		3.	The Seller hereby notifies the Buyer pursuant to Section 3.1.2 of the Put Option Agreement
that they wish to exercise the Option granted in Section 2.1 of the Put Option Agreement to sell all of the Option Shares
at the Option Price on the Completion Date.

 

	 	 
	for and on behalf of	 
	LATAM Airlines Group S.A.	 

 

    	 	- 8-	 

     

    

 

	EXECUTED by the parties:	 
	 	 
	Signed by 	 
	a duly authorised 	)
	representative of 	)
	LATAM AIRLINES GROUP S.A.	)

 

	/s/ Pilar Duarte	Signature
	Authorized Signatory	 

 

	Signed by	)
	a duly authorised 	)
	representative of	)
	MAPLESFS LIMITED 	)
	not in its individual capacity but 	)
	solely in its capacity as trustee under	)
	the Declaration of Trust dated on 	)
	or about the date hereof)	)

 

	/s/ Wendy Ebanks	Signature
	Authorized Signatory	 

 

Put Option Agreement - CanasteroExhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made and entered into as of this 1 day of April, 2016 (the “Effective Date”),
by and between SPHERIX INCORPORATED, a Delaware corporation with offices at 7927 Jones Branch Drive, Suite 3125, Tysons Corner,
Virginia 22102 (the “Corporation”), and Anthony Hayes, an individual residing at 233 E. 69th St.
Apt. 10N, New York, NY 10021 (the “Executive”), under the following circumstances:

 

RECITALS:

 

A.          The
Corporation desires to secure the services of the Executive upon the terms and conditions hereinafter set forth;

 

B.           The
Executive desires to render services to the Corporation upon the terms and conditions hereinafter set forth; and

 

C.           The
Corporation and the Executive desire for this Agreement to constitute and embody their full and complete understanding and agreement
with respect to the Executive’s employment by the Corporation and supersede, as of the Effective Date, all prior understandings
and agreements, whether oral or written, between them with respect to such employment, including but not limited to, the Employment
Agreement dated September 6, 2013 (the “Prior Agreement”).

 

NOW, THEREFORE, the
parties mutually agree as follows:

 

1.          Employment.
The Corporation hereby employs the Executive and the Executive hereby accepts employment as an executive of the Corporation, subject
to the terms and conditions set forth in this Agreement.

 

2.        Duties.
The Executive shall serve as the Chief Executive Officer of the Corporation, with such duties, responsibilities, and authority
as are commensurate and consistent with his position, and such other duties, responsibilities and authority as may be, from time
to time, reasonably assigned to him by the Board of Directors (the “Board”) or Chairman of the Board of the
Corporation. The Executive shall report directly to the Chairman of the Board of the Corporation. During the Term (as defined in
Section 3), the Executive shall devote his full business time and efforts to the performance of his duties hereunder unless otherwise
authorized by the Board. Notwithstanding the foregoing, the expenditure of reasonable amounts of time by the Executive for the
making of passive personal investments, the conduct of private business affairs, and charitable and professional activities shall
be allowed, provided such activities do not materially interfere with the services required to be rendered to the Corporation hereunder
and do not violate the confidentiality provisions set forth in Section 8 below. For the avoidance of doubt, Executive may
invest or be involved with other ventures and investments, including intellectual property related ventures and investments, (hereafter
“Other Investments”), so long as all Other Investments are disclosed to the Corporation and the Corporation
determines that Executive’s involvement in any Other Investment does not contravene any provisions of this Agreement or will
breach any of Executive’s duties to Company or its stockholders.

 

     

     

    

 

3.          Term
of Employment. The term of this Agreement shall be for one (1) year (the “Initial Term”) and automatically
be extended for additional terms of one (1) year each (each a “Renewal Term”) unless either party gives prior
written notice of non-renewal to the other party no later than six (6) months prior to the expiration of the Initial Term (“Non-Renewal
Notice”), or the then current Renewal Term, as the case may be. For purposes of this Agreement, the Initial Term and
any Renewal Term are hereinafter collectively referred to as the “Term.”

 

4.          Compensation
of Executive.

 

(a)          The
Corporation shall pay the Executive as compensation for his services hereunder, in equal semi-monthly or bi-weekly installments
during the Term, the sum of $350,000 per annum (as in effect from time to time, the “Base Salary”), less such deductions
as shall be required to be withheld by applicable law and regulations. The Corporation shall review the Base Salary on an annual
basis and has the right but not the obligation to increase it, but has no right to decrease the Base Salary.

 

(b)          In
addition to the Base Salary set forth in Section 4(a) above, the Executive shall be entitled to receive an annual cash bonus
(“Annual Bonus”) in an amount equal to up to one hundred (100%) percent of his then-current Base Salary if the
Corporation meets or exceeds criteria adopted by the Compensation Committee of the Board (the “Compensation Committee”)
for earning Bonuses, which criteria shall be adopted by the Compensation Committee annually after consultation with the Executive
and which criteria must be reasonably likely to be attainable. Annual Bonuses shall be paid by the Corporation to the Executive
promptly after the year end, it being understood that the Compensation Committee’s determinations concerning attainment of
any financial targets associated with any bonus determination shall not be determined until following the completion of the Corporation’s
annual audit and public announcement of such results and shall be paid promptly following the Corporation’s announcement
of earnings, but in no event later than December 31 of the year following the year for which it is being paid (and if the Executive
was employed as of last day of the calendar year to which such Annual Bonus relates, then the Executive shall be entitled to the
Annual Bonus for such year, even if he is not employed by the Corporation on the date the Annual Bonus is paid for such last year).
The Compensation Committee may provide for lesser or greater percentage Annual Bonus payments for Executive upon achievement of
partial or additional criteria established or determined by the Compensation Committee from time to time. For the avoidance of
doubt, if Executive is employed upon expiration of the term of this Agreement, he shall be entitled to the Annual Bonus for such
last year on a pro-rata basis through the last date of employment, even if he is not employed by the Corporation on the date the
Annual Bonus is paid for such last year. In his sole discretion, the Executive may elect to receive such annual bonus in common
stock of the Corporation at the basis determined by the Compensation Committee in good faith.

 

    	 	- 2 -	 

     

    

 

(c)          
The Compensation Committee of the Corporation shall approve a restricted stock unit grant to Executive (the “RSU Grant”)
pursuant to the Corporation’s 2014 Equity Incentive Plan (the “Plan”) with respect to one hundred eighteen thousand
five hundred and twelve (118,512) shares of common stock of the Corporation. The RSU Grant shall be completed within ten (10) days
of the date of execution of this Agreement. One-half (1/2) of the RSU Grant shall vest if as of 12.31.16 the Corporation has pro-forma
cash of at least five million dollars ($5,000,000) (cash plus any cash used for a Board-approved extraordinary acquisition or transaction
reconstituting the Corporation’s core operations, less accrued bonuses) and one-half (1/2) shall vest if there is consummation
by 12.31.16 of a Board-approved extraordinary acquisition or transaction reconstituting the Corporation’s core operations.
In addition, the RSU Grant shall immediately vest in full if by December 31, 2016 there is (i) a “Change in Control Transaction”
during the term of the Executive’s employment and or (ii) a termination of the Executive’s services hereunder by the
Corporation other than for “Cause” or by the Executive for “Good Reason” (each as defined in Section 5
below). Any portion of the RSU Grant not vested as of December 31, 2016 shall be forfeited. Shares of common stock shall be delivered
to Executive promptly, and in any event within five (5) business days, after vesting (accordingly, such shares shall be delivered
within the short-term deferral exception period under Section 409A). (For avoidance of doubt, any such delivery of shares attributable
to the Corporation having pro-forma cash of at least five million dollars ($5,000,000) (cash less accrued bonuses) as of 12.31.16
shall occur within five (5) business days after the Compensation Committee has received and reviewed year-end financial information
and determined that the condition has been satisfied, any such delivery to be no later than March 15, 2017.) To the extent the
RSU Grant is forfeited, the Compensation Committee of the Corporation shall for 2017 provide a grant of restricted stock units
for Executive in an amount not less than the amount so forfeited, subject to vesting criteria to be adopted by the Compensation
Committee after consultation with the Executive, which criteria must be reasonably likely to be attainable.

 

(d)          The
Corporation shall pay or reimburse the Executive for all reasonable out-of-pocket expenses actually incurred or paid by the Executive
in the course of his employment, consistent with the Corporation’s policy for reimbursement of expenses from time to time.

 

(e)          The
Executive shall be entitled to participate in such pension, profit sharing, group insurance, hospitalization, and group health
and benefit plans and all other benefits and plans, including perquisites, if any, as the Corporation provides to its senior executives,
including group family health insurance coverage, which shall be paid by the Corporation (the “Benefit Plans”).
If at any time during the Term, the Corporation does not provide its senior executives with health insurance (including hospitalization)
under a Benefit Plan, Executive shall be entitled to secure such health insurance for himself and his immediate family (i.e., spouse
and natural born children) and the Corporation shall reimburse Executive for the cost of such insurance promptly after payment
by the Executive for such insurance. For the avoidance of doubt, Executive shall be entitled to secure health insurance from high
quality companies such as Blue Cross/Blue Shield, United, or Emblem, and the ability to select a no or low deductible plan. If
Executive secures such health insurance, such health insurance shall be deemed to be a Benefit Plan hereunder.

 

(f)          The
Corporation shall execute and deliver in favor of the Executive an indemnification agreement on the same terms and conditions entered
into with the other officers and directors of the Corporation. Such agreement shall provide for the indemnification of the Executive
for the term of his employment and for a period of at least six (6) years thereafter. The Corporation shall maintain directors’
and officers’ insurance during the Term and for a period of at least six (6) years thereafter.

 

    	 	- 3 -	 

     

    

 

(g)          The
Corporation shall also maintain (or hire, if applicable) a New York City based executive assistant to assist the Executive with
his duties.

 

5.          Termination.

 

(a)          This
Agreement and the Executive’s employment hereunder shall terminate upon the happening of any of the following events:

 

(i)          upon
the Executive’s death:

 

(ii)         upon
the Executive’s “Total Disability (as herein defined);

 

(iii)        upon
the expiration of the Initial Term of this Agreement or any Renewal Term thereof, if either party has provided a timely Non-Renewal
Notice in accordance with Section 3, above;

 

(iv)        at
the Executive’s option, upon ninety (90) days prior written notice to the Corporation (other than under the circumstances
set forth in Section 5(b)(viii));

 

(v)         at
the Executive’s option, in the event of an act by the Corporation, defined in Section 5(c), below, as constituting “Good
Reason” for termination by the Executive;

 

(vi)        at
the Corporation’s option, in the event of an act or inaction by the Executive, defined in Section 5(d), below, as constituting
“Cause” for termination by the Corporation;

 

(vii)       at
the Corporation’s option, upon ninety (90) days prior written notice to the Executive, without Cause; and

 

(viii)      at
the Executive’s option, upon written notice to the Corporation at any time within forty (40) days of the consummation of
a Change in Control Transaction.

 

(b)          For
purposes of this Agreement, the Executive shall be deemed to be suffering from a “Total Disability” if the Executive
has failed to perform his regular and customary duties to the Corporation for a period of 180 days out of any 360-day period and
if before the Executive has become “Rehabilitated” (as herein defined) a majority of the members of the Board, exclusive
of the Executive, vote to determine that the Executive is mentally or physically incapable or unable to continue to perform such
regular and customary duties of employment. As used herein, the term “Rehabilitated” shall mean such time as
the Executive is willing, able, and commences to devote his time and energies to the affairs of the Corporation to the extent and
in the manner that he did so prior to his Total Disability.

 

    	 	- 4 -	 

     

    

 

(c)          For
purposes of this Agreement, the term “Good Reason” shall mean that the Executive has resigned due to: (i) a
material diminution of duties inconsistent with Executive’s title, authority, duties, and responsibilities (including, without
limitation, a change in the chain of reporting); (ii) any relocation of the principal location of Executive’s employment
outside of New York City without the Executive’s prior written consent; (iii) any material violation by the Corporation of
its obligations (including, without limitation, its compensation obligations) under this Agreement; provided that the Executive
has given written notice to the Corporation within ninety (90) days of Executive’s knowledge of the initial occurrence of
such event, and the Corporation has failed to cure such acts within thirty (30) days of receipt of such notice, if curable, and
the Executive must then terminate his employment within thirty (30) days following the expiration of such cure period for the termination
to be on account of Good Reason. For purposes of this Agreement, the term “Change in Control Transaction” means
the sale of the Corporation to an un-affiliated person or entity or group of un-affiliated persons or entities pursuant to which
such party or parties acquire (i) shares of capital stock of the Corporation representing at least fifty percent (50%) of outstanding
capital stock or sufficient to elect a majority of the Board or of the board of directors of the Corporation (whether by merger,
consolidation, sale, or transfer of shares (other than a merger where the Corporation is the surviving corporation and the shareholders
and directors of the Corporation prior to the merger constitute a majority of the shareholders and directors, respectively, of
the surviving corporation (or its parent)) or (ii) all or substantially all of the Corporation’s assets determined on a consolidated
basis. Any equity grants issued to the Executive pursuant to the terms of this Agreement shall be immediately vested upon consummation
of a Change in Control Transaction.

 

(d)          For
purposes of this Agreement, the term “Cause” shall mean any material breach of this Agreement or any other agreement
or certificate signed by the Executive in connection with that certain Agreement and Plan of Merger by and among the Corporation,
NS, and Nuta Technology Corp., a Virginia corporation (“NUTA”) by Executive or material, gross, and willful misconduct
on the part of the Executive in connection with his employment duties hereunder, in all cases that is not cured within fourteen
(14) days after receipt of notice thereof (to the extent such breach is capable of being cured), or the Executive’s conviction
of or entering of a guilty plea or a plea of no contest with respect to a felony or any crime involving fraud, larceny, or embezzlement
resulting in material harm to the Corporation by the Executive.

 

6.          Effects
of Termination.

 

Upon any termination
of employment for any reason, whether by the Executive or the Corporation, the Executive shall be paid accrued but unpaid compensation
and vacation pay through the date of termination and any other benefits accrued to him under any Benefit Plans outstanding at the
date of termination and the reimbursement of documented, unreimbursed expenses incurred on or prior to such date, all paid as promptly
as practicable and in accordance with applicable law, and the Executive shall have any conversion rights available under the Corporation’s
Benefit Plans and as otherwise provided by law, including the Consolidated Omnibus Budget Reconciliation Act and any similar state
law or regulation (collectively, “COBRA Rights”).

 

The following provisions
apply to specified termination events. Any Annual Bonus (including any pro-rated Annual Bonus) payable pursuant to the following
provisions shall be paid at the same time that it would have been paid if the Executive’s employment had not terminated.

 

    	 	- 5 -	 

     

    

 

(a)          Upon
termination of the Executive’s employment pursuant to Section 5(a)(i) (Death) or (ii) (Disability), in addition to the accrued
but unpaid compensation and vacation pay through the date of death or Total Disability and any other benefits accrued to him under
any Benefit Plans outstanding at such time and the reimbursement of documented, unreimbursed expenses incurred prior to such date,
the Executive or his estate or beneficiaries, as applicable, shall be entitled to the following severance benefits: (i) twelve
(12) months’ Base Salary at the then current rate, payable in a lump sum, less withholding of applicable taxes, within thirty
(30) days of the date of termination; (ii) if the Executive elects continuation coverage for group health coverage pursuant to
COBRA Rights, then for a period of twelve (12) months following the Executive’s termination he will be obligated to pay only
the portion of the full COBRA Rights cost of the coverage equal to an active employee's share of premiums (if any) for coverage
for the respective plan year and, to the extent required by any applicable nondiscrimination rules, the Company's share of such
premiums (the "Employer-Provided COBRA Premium") shall be treated as taxable income to the Executive; and (iii) payment
on a pro-rated basis of any Annual Bonus or other payments earned in connection with any bonus plan to which the Executive was
a participant as of the date of death or Total Disability. This Section 6(a) shall not terminate or otherwise interfere with any
right to disability payments.

 

(b)          Upon
termination of the Executive’s employment pursuant to Section 5(a)(iii) (Expiration of Term), where the Corporation has offered
to renew the term of the Executive’s employment for an additional one (1) year period and the Executive chooses not to continue
in the employ of the Corporation, the Executive shall be entitled to receive only the accrued but unpaid compensation and vacation
pay through the date of termination, payment on a pro-rated basis of any Annual Bonus, or other payments earned in connection with
any bonus plan to which the Executive was a participant as of the date of the Executive’s termination of employment, any
other benefits accrued to him under any Benefit Plans outstanding at such time, and the reimbursement of documented, unreimbursed
expenses incurred prior to such date. In the event the Corporation tenders a Non-Renewal Notice to the Executive, then the Executive
shall be entitled to the same severance benefits as if the Executive’s employment were terminated pursuant to Section 5(a)(v);
provided, however, if such Non-Renewal Notice was triggered due to the Corporation’s statement that the Executive’s
employment was terminated due to Section 5(a)(vi) (for “Cause”), then payment of severance benefits will be contingent
upon a determination as to whether termination was properly for “Cause.”

 

(c)          Upon
termination of the Executive’s employment pursuant to Section 5(a)(v) (Termination for Good Reason), 5(a)(vii) (Termination
by the Company Without Cause) or 5(a)(viii) (Termination Within Thirty Days of a Change in Control), in addition to the accrued
but unpaid compensation and vacation through the date of termination and any other benefits accrued to him under any Benefit Plans
outstanding at such time and the reimbursement of documented, unreimbursed expenses incurred prior to such date, the Executive
shall be entitled to the following severance benefits: (i) twelve (12) months’ Base Salary at the then current rate, to be
paid in a single lump sum payment not later than thirty (30) days following such termination, less withholding of all applicable
taxes; (ii) if the Executive elects continuation coverage for group health coverage pursuant to COBRA Rights, then for a period
of twelve (12) months following the Executive’s termination he will be obligated to pay only the portion of the full COBRA
Rights cost of the coverage equal to an active employee's share of premiums (if any) for coverage for the respective plan year
and, to the extent required by any applicable nondiscrimination rules, the Employer-Provided COBRA Premium shall be treated as
taxable income to the Executive; and (iii) payment on a pro-rated basis of any Annual Bonus or other payments earned in connection
with any bonus plan to which the Executive was a participant as of the date of the Executive’s termination of employment.
In addition, any equity grants to Executive shall be immediately vested upon termination of Executive’s employment pursuant
to Section 5(a)(v) or 5(a)(vii).

 

    	 	- 6 -	 

     

    

 

(d)          Upon
termination of the Executive’s employment pursuant to Section 5(a)(iv) (Voluntary Termination by Executive) or (vi) (Termination
by the Company for Cause), in addition to the reimbursement of documented, unreimbursed expenses incurred prior to such date, the
Executive shall be entitled to the following severance benefits: (i) accrued and unpaid Base Salary and vacation pay through the
date of termination, less withholding of applicable taxes; and (ii) if the Executive elects continuation coverage for group health
coverage pursuant to COBRA Rights, then, for a period of one (1) month following the Executive’s termination, he will be
obligated to pay only the portion of the full COBRA Rights cost of the coverage equal to an active employee's share of premiums
(if any) for coverage for one month of the respective plan year and, to the extent required by any applicable nondiscrimination
rules, the Employer-Provided COBRA Premium shall be treated as taxable income to the Executive.

 

(e)          Any
payments required to be made hereunder by the Corporation to the Executive shall continue to the Executive’s beneficiaries
in the event of his death until paid in full.

 

7.          Vacations.
The Executive shall be entitled to a vacation of three (3) weeks per year, during which period his Base Salary shall be paid in
full. The Executive shall take his vacation at such time or times as the Executive and the Corporation shall determine is mutually
convenient. Any vacation not taken in one (1) year shall accrue, up to a maximum of six (6) weeks of vacation, and shall carry
over to the subsequent year.

 

8.          Disclosure
of Confidential Information. The Executive recognizes, acknowledges and agrees that he has had and will continue to have access
to secret and confidential information regarding the Corporation, including but not limited to, its products, formulae, patents,
sources of supply, customer dealings, data, know-how, and business plans, provided such information is not in or does not hereafter
become part of the public domain, or become known to others through no fault of the Executive. The Executive acknowledges that
such information is of great value to the Corporation, is the sole property of the Corporation, and has been and will be acquired
by him in confidence. In consideration of the obligations undertaken by the Corporation herein, the Executive will not, at any
time, during or after his employment hereunder, reveal, divulge, or make known to any person any information acquired by the Executive
during the course of his employment, which is treated as confidential by the Corporation, and not otherwise in the public domain.
The provisions of this Section 8 shall survive the termination of the Executive’s employment hereunder. All references to
the Corporation in Section 8 and Section 9 hereof shall include any subsidiary of the Corporation.

 

    	 	- 7 -	 

     

    

 

9.          Clawback
Rights. The Annual Bonus, and any and all stock-based compensation (such as options and equity awards) (collectively, the “Clawback
Benefits”) shall be subject to “Corporation Clawback Rights” as follows: During the period that the
Executive is employed by the Corporation and upon the termination of the Executive’s employment and for a period of three
(3) years thereafter, if there is a restatement of any financial results from which any Clawback Benefits to Executive shall have
been determined, Executive agrees to repay any amounts that were determined by reference to any Corporation financial results that
were later restated (as defined below), to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that
would have been paid, based on the restatement of the Corporation’s financial information. All Clawback Benefits amounts
resulting from such restated financial results shall be retroactively adjusted by the Compensation Committee to take into account
the restated results, and any excess portion of the Clawback Benefits resulting from such restated results shall be immediately
surrendered to the Corporation and if not so surrendered within ninety (90) days of the revised calculation being provided to the
Executive by the Compensation Committee following a publicly announced restatement, the Corporation shall have the right to take
any and all action to effectuate such adjustment. The calculation of the Revised Clawback Benefits amount shall be determined by
the Compensation Committee in good faith and applicable laws, rules, and regulations. All determinations by the Compensation Committee
with respect to the Clawback Rights shall be final and binding on the Corporation and Executive. The Clawback Rights shall terminate
following a Change of Control, subject to applicable laws, rules, and regulations. For purposes of this Section 9, a restatement
of financial results that requires a repayment of a portion of the Clawback Benefits amounts shall mean a restatement resulting
from material non-compliance of the Corporation with any financial reporting requirement under the federal securities laws and
shall not include a restatement of financial results resulting from subsequent changes in accounting pronouncements or requirements
that were not in effect on the date the financial statements were originally prepared (“Restatements”). The
parties acknowledge it is their intention that the foregoing Clawback Rights as relates to Restatements conform in all respects
to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”)
and requires recovery of all “incentive-based” compensation, pursuant to the provisions of the Dodd-Frank Act and any
and all rules and regulations promulgated thereunder from time to time in effect. Accordingly, the terms and conditions of this
Agreement shall be deemed automatically amended from time to time to the extent required to assure compliance with the Dodd-Frank
Act or any applicable rules or regulations enacted thereunder that may be adopted by the Securities and Exchange Commission or
any stock exchange on which the securities of the Company are listed.

 

10.         Section
409A.

 

(a)          The
provisions of this Agreement are intended to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) and any final regulations and guidance promulgated thereunder (“Section 409A”)
and shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. The Corporation
and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions
that are necessary, appropriate, or desirable to avoid imposition of any additional tax or income recognition prior to actual payment
to Executive under Section 409A.

 

(b)          To
the extent that Executive will be reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section
409A, (i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit; (ii) the
amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided that the foregoing clause (ii)
shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because
such expenses are subject to a limit related to the period the arrangement is in effect; and (iii) such payments shall be made
on or before the last day of the taxable year following the taxable year in which Executive incurred the expense.

 

    	 	- 8 -	 

     

    

 

(c)          A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits upon or following a termination of employment unless such termination constitutes a “Separation
from Service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement references to
a “termination,” “termination of employment,” or like terms shall mean Separation from Service.

 

(d)          Each
installment payable hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including
Treasury Regulation Section 1.409A-2(b)(2)(iii). Each payment that is made within the terms of the “short-term deferral”
rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule. Each
other payment is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation
Section 1.409A-1(b)(9)(iii), et seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from
Code Section 409A being subject to Code Section 409A.

 

(e)          Notwithstanding
anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A
at the time of Executive’s termination, then only that portion of the severance and benefits payable to Executive pursuant
to this Agreement, if any, and any other severance payments or separation benefits that may be considered deferred compensation
under Section 409A (together, the “Deferred Compensation Separation Benefits”), which (when considered together) do
not exceed the Section 409A Limit (as defined herein) may be made within the first six (6) months following Executive’s termination
of employment in accordance with the payment schedule applicable to each payment or benefit. Any portion of the Deferred Compensation
Separation Benefits in excess of the Section 409A Limit otherwise due to Executive on or within the six (6) month period following
Executive’s termination will accrue during such six (6) month period and will become payable in one lump sum cash payment
on the date six (6) months and one (1) day following the date of Executive’s termination of employment. All subsequent Deferred
Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or
benefit. Notwithstanding anything herein to the contrary, if Executive dies following termination but prior to the six (6) month
anniversary of Executive’s termination date, then any payments delayed in accordance with this paragraph will be payable
in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation
Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.

 

(f)          For
purposes of this Agreement, “Section 409A Limit” will mean a sum equal (x) to the amounts payable prior to March 15
following the year in which Executive terminations plus (y) the lesser of two (2) times: (i) Executive’s annualized compensation
based upon the annual rate of pay paid to Executive during the Corporation’s taxable year preceding the Corporation’s
taxable year of Executive’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and
any IRS guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan
pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.

 

    	 	- 9 -	 

     

    

 

11.         Miscellaneous.

 

(a)          The
Executive acknowledges that the services to be rendered by him under the provisions of this Agreement are of a special, unique,
and extraordinary character and that it would be difficult or impossible to replace such services. Accordingly, the Executive agrees
that any breach or threatened breach by him of Sections 8 or 9 of this Agreement shall entitle the Corporation, in addition to
all other legal remedies available to it, to apply to any court of competent jurisdiction to seek to enjoin such breach or threatened
breach. The parties understand and intend that each restriction agreed to by the Executive hereinabove shall be construed as separable
and divisible from every other restriction, that the unenforceability of any restriction shall not limit the enforceability, in
whole or in part, of any other restriction, and that one or more or all of such restrictions may be enforced in whole or in part
as the circumstances warrant. In the event that any restriction in this Agreement is more restrictive than permitted by law in
the jurisdiction in which the Corporation seeks enforcement thereof, such restriction shall be limited to the extent permitted
by law. The remedy of injunctive relief herein set forth shall be in addition to, and not in lieu of, any other rights or remedies
that the Corporation may have at law or in equity.

 

(b)          Neither
the Executive nor the Corporation may assign or delegate any of their rights or duties under this Agreement without the express
written consent of the other; provided however that the Corporation shall have the right to delegate its obligation of payment
of all sums due to the Executive hereunder, provided that such delegation shall not relieve the Corporation of any of its obligations
hereunder.

 

(c)          This
Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to the Executive’s
employment by the Corporation, supersedes, as of the Effective Date, all prior understandings and agreements, whether oral or written,
between the Executive and the Corporation with respect to such employment, including but not limited to, the Prior Agreement, and
shall not be amended, modified, or changed except by an instrument in writing executed by the party to be charged. The invalidity
or partial invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement. No
waiver by either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same time or any prior or subsequent time.

 

(d)          This
Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors,
heirs, beneficiaries, and permitted assigns.

 

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

 

    	 	- 10 -	 

     

    

 

(f)          All
notices, requests, demands, and other communications required or permitted to be given hereunder shall be in writing and shall
be deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage
prepaid, or by private overnight mail service (e.g. Federal Express) to the party at the address set forth above or to such other
address as either party may hereafter give notice of in accordance with the provisions hereof. Notices shall be deemed given on
the sooner of the date actually received or the third business day after sending.

 

(g)          This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without reference to
principles of conflicts of laws and each of the parties hereto irrevocably consents to the jurisdiction and venue of the federal
and state courts located in the State of New York.

 

(h)          This
Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the Effective Date.

 

	CORPORATION:	 
	 	 
	SPHERIX INCORPORATED	 
	 	 	 
	By:	/s/ Tim Ledwick	 
	 	 	 
	Title:  Duly Authorized Chairman of the Compensation Committee
	 	 
	EXECUTIVE:	 
	 	 
	/s/ Anthony Hayes	 
	Anthony Hayes	 

 

    	 	- 11 -

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