Document:

Exhibit 10.1

 

REIGN SAPPHIRE CORPORATION

DIRECTOR INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (this “Agreement”) is dated as of December 31, 2014, and is between Reign Sapphire Corporation, a Delaware
corporation (the “Company”) and Joseph Segelman (the “Indemnitee”), a director of the Company.

 

RECITALS 

 

WHEREAS, Indemnitee’s
service to the Company substantially benefits the Company;

 

WHEREAS, Individuals
are reluctant to serve as directors of corporations or in certain other capacities unless they are provided with adequate protection
through insurance or indemnification against the risks of claims and actions against them arising out of such service;

 

WHEREAS, Indemnitee
does not regard the protection currently provided by applicable law, the Company’s governing documents and any insurance
as adequate under the present circumstances, and Indemnitee may not be willing to serve as a director without additional protection.

 

WHEREAS, In
order to induce Indemnitee to continue to provide services to the Company, it is reasonable, prudent and necessary for the Company
to contractually obligate itself to indemnify, and to advance expenses on behalf of, Indemnitee as permitted by applicable law;

 

WHEREAS, This
Agreement is a supplement to and in furtherance of the indemnification provided in the Company’s certificate of incorporation
and bylaws, and any resolutions adopted pursuant thereto, and this Agreement shall not be deemed a substitute therefor, nor shall
this Agreement be deemed to limit, diminish or abrogate any rights of Indemnitee thereunder.

 

NOW THEREFORE,
in consideration of the premises and the mutual covenants contained in this Agreement, the parties agree as follows:

 

1. Definitions. 

 

(a) A “Change
in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following
events:

 

(i) Acquisition
of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly,
of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then
outstanding securities;

 

    	 

    	 

    

 

(ii) Change in
Board Composition. During any period of two consecutive years (not including any period prior to the execution of this Agreement),
individuals who at the beginning of such period constitute the Company’s board of directors, and any new directors (other
than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in
Sections 1(a)(i), 1(a)(iii) or 1(a)(iv)) whose election by the board of directors or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute
at least a majority of the members of the Company’s board of directors;

 

(iii) Corporate
Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or
consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such
merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such
surviving entity;

 

(iv) Liquidation.
The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets; and

 

(v) Other Events.
Any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or
in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended,
whether or not the Company is then subject to such reporting requirement.

 

For purposes of this Section 1(a), the
following terms shall have the following meanings:

 

(1) “Person”
shall have the meaning as set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended; provided,
however, that “Person” shall exclude (i) the Company, (ii) any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company.

 

(2) “Beneficial
Owner” shall have the meaning given to such term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended;
provided, however, that “Beneficial Owner” shall exclude any Person otherwise becoming a Beneficial
Owner by reason of (i) the stockholders of the Company approving a merger of the Company with another entity or (ii) the Company’s
board of directors approving a sale of securities by the Company to such Person.

 

(b) “Corporate
Status” describes the status of a person who is or was a director, trustee, general partner, managing member, officer,
employee, agent or fiduciary of the Company or any other Enterprise.

 

(c) “DGCL”
means the General Corporation Law of the State of Delaware.

 

    	 

    	 

    

 

(d) “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.

 

(e) “Enterprise”
means the Company and any other corporation, partnership, limited liability company, joint venture, trust, employee benefit plan
or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, trustee, general partner,
managing member, officer, employee, agent or fiduciary.

 

(f) “Expenses”
include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and costs of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or
defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also include
(i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security
for, and other costs relating to any cost bond, supersedeas bond or other appeal bond or their equivalent, and (ii) for purposes
of Section 12(d), Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s
rights under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company.
Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(g) “Independent
Counsel” means a law firm, or a partner or member of a law firm, that is experienced in matters of corporation law
and neither presently is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter
material to either such party (other than as Independent Counsel with respect to matters concerning Indemnitee under this Agreement,
or other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim
for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not
include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest
in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

(h) “Proceeding”
means any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or proceeding, whether brought in the right of the Company or otherwise and whether of a civil,
criminal, administrative or investigative nature, including any appeal therefrom and including without limitation any such Proceeding
pending as of the date of this Agreement, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party
witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or officer of the Company, (ii) any action
taken by Indemnitee or any action or inaction on Indemnitee’s part while acting as a director or officer of the Company,
or (iii) the fact that he or she is or was serving at the request of the Company as a director, trustee, general partner, managing
member, officer, employee, agent or fiduciary of the Company or any other Enterprise, in each case whether or not serving in such
capacity at the time any liability or Expense is incurred for which indemnification or advancement of expenses can be provided
under this Agreement.

 

    	 

    	 

    

 

(i) Reference to
“other enterprises” shall include employee benefit plans; references to “fines”
shall include any excise taxes assessed on a person with respect to any employee benefit plan; references to “serving
at the request of the Company” shall include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit
plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably believed to
be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner
“not opposed to the best interests of the Company” as referred to in this Agreement.

 

2. Indemnity in
Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 2 if Indemnitee
is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 2, Indemnitee shall be indemnified to the fullest extent permitted
by applicable law against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee
or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith
and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company and, with respect to
any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

 

3. Indemnity in
Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of
this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right
of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent
permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf
in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he
or she reasonably believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall
be made under this Section 3 in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged by a court
of competent jurisdiction to be liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any
court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view
of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such expenses as the
Delaware Court of Chancery or such other court shall deem proper.

 

4. Indemnification
for Expenses of a Party Who is Wholly or Partly Successful. To the extent that Indemnitee is a party to or a participant in
and is successful (on the merits or otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company
shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf
in connection therewith. To the extent permitted by applicable law, if Indemnitee is not wholly successful in such Proceeding but
is successful, on the merits or otherwise, in defense of one or more but less than all claims, issues or matters in such Proceeding,
the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s
behalf in connection with (a) each successfully resolved claim, issue or matter and (b) any claim, issue or matter related to any
such successfully resolved claim, issuer or matter. For purposes of this section, the termination of any claim, issue or matter
in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue
or matter.

 

    	 

    	 

    

 

5. Indemnification
for Expenses of a Witness. To the extent that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding
to which Indemnitee is not a party, Indemnitee shall be indemnified to the extent permitted by applicable law against all Expenses
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

 

6. Additional Indemnification.

 

(a) Notwithstanding
any limitation in Sections 2, 3 or 4, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law
if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by or in the
right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement
actually and reasonably incurred by Indemnitee or on his or her behalf in connection with the Proceeding or any claim, issue or
matter therein.

 

(b) For purposes
of Section 6(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall
include, but not be limited to:

 

(i) the fullest extent
permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding
provision of any amendment to or replacement of the DGCL; and

 

(ii) the fullest
extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase
the extent to which a corporation may indemnify its officers and directors.

 

7. Exclusions.
Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity
in connection with any Proceeding (or any part of any Proceeding):

 

(a) for which payment
has actually been made to or on behalf of Indemnitee under any statute, insurance policy, indemnity provision, vote or otherwise,
except with respect to any excess beyond the amount paid, subject to any subrogation rights set forth in Section 15;

 

(b) for an accounting
or disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions
of federal, state or local statutory law or common law, if Indemnitee is held liable therefor (including pursuant to any settlement
arrangements);

 

    	 

    	 

    

 

(c) for any reimbursement
of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee
from the sale of securities of the Company, as required in each case under the Securities Exchange Act of 1934, as amended (including
any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley
Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase
and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if Indemnitee is held liable therefor
(including pursuant to any settlement arrangements);

 

(d) initiated by
Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors,
officers, employees, agents or other indemnitees, unless (i) the Company’s board of directors authorized the Proceeding (or
the relevant part of the Proceeding) prior to its initiation, (ii) the Company provides the indemnification, in its sole discretion,
pursuant to the powers vested in the Company under applicable law, (iii) otherwise authorized in Section 12(d) or (iv) otherwise
required by applicable law; or

 

(e) if prohibited by applicable law.

 

8. Advances of
Expenses. The Company shall advance the Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement
shall be made as soon as reasonably practicable, but in any event no later than 60 days, after the receipt by the Company of a
written statement or statements requesting such advances from time to time (which shall include invoices received by Indemnitee
in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed
or to expenditure made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with
the invoice). Advances shall be unsecured and interest free and made without regard to Indemnitee’s ability to repay such
advances. Indemnitee hereby undertakes to repay any advance to the extent that it is ultimately determined that Indemnitee is not
entitled to be indemnified by the Company. This Section 8 shall not apply to the extent advancement is prohibited by law and shall
not apply to any Proceeding for which indemnity is not permitted under this Agreement, but shall apply to any Proceeding referenced
in Section 7(b) or 7(c) prior to a determination that Indemnitee is not entitled to be indemnified by the Company.

 

9. Procedures for Notification and Defense
of Claim.

 

(a) Indemnitee shall
notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of
Expenses as soon as reasonably practicable following the receipt by Indemnitee of notice thereof. The written notification to the
Company shall include, in reasonable detail, a description of the nature of the Proceeding and the facts underlying the Proceeding.
The failure by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to Indemnitee
hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee
of any rights, except to the extent that such failure or delay materially prejudices the Company.

 

    	 

    	 

    

 

(b) If, at the time
of the receipt of a notice of a Proceeding pursuant to the terms hereof, the Company has directors’ and officers’ liability
insurance in effect, the Company shall give prompt notice of the commencement of the Proceeding to the insurers in accordance with
the procedures set forth in the applicable policies. The Company shall thereafter take all commercially-reasonable action to cause
such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms
of such policies.

 

(c) In the event
the Company may be obligated to make any indemnity in connection with a Proceeding, the Company shall be entitled to assume the
defense of such Proceeding with counsel approved by Indemnitee, which approval shall not be unreasonably withheld, upon the delivery
to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee
and the retention of such counsel by the Company, the Company will not be liable to Indemnitee for any fees or expenses of counsel
subsequently incurred by Indemnitee with respect to the same Proceeding. Notwithstanding the Company’s assumption of the
defense of any such Proceeding, the Company shall be obligated to pay the fees and expenses of Indemnitee’s counsel to the
extent (i) the employment of counsel by Indemnitee is authorized by the Company, (ii) counsel for the Company or Indemnitee shall
have reasonably concluded that there is a conflict of interest between the Company and Indemnitee in the conduct of any such defense
such that Indemnitee needs to be separately represented, (iii) the fees and expenses are non-duplicative and reasonably incurred
in connection with Indemnitee’s role in the Proceeding despite the Company’s assumption of the defense, (iv) the Company
is not financially or legally able to perform its indemnification obligations or (v) the Company shall not have retained, or shall
not continue to retain, such counsel to defend such Proceeding. The Company shall have the right to conduct such defense as it
sees fit in its sole discretion. Regardless of any provision in this Agreement, Indemnitee shall have the right to employ counsel
in any Proceeding at Indemnitee’s personal expense. The Company shall not be entitled, without the consent of Indemnitee,
to assume the defense of any claim brought by or in the right of the Company.

 

(d) Indemnitee shall
give the Company such information and cooperation in connection with the Proceeding as may be reasonably appropriate.

 

(e) The Company shall
not be liable to indemnify Indemnitee for any settlement of any Proceeding (or any part thereof) without the Company’s prior
written consent, which shall not be unreasonably withheld.

 

(f) The Company shall
have the right to settle any Proceeding (or any part thereof) without the consent of Indemnitee.

 

10. Procedures
upon Application for Indemnification. 

 

(a) To obtain indemnification,
Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as
is reasonably available to Indemnitee and as is reasonably necessary to determine whether and to what extent Indemnitee is entitled
to indemnification following the final disposition of the Proceeding. The Company shall, as soon as reasonably practicable after
receipt of such a request for indemnification, advise the board of directors that Indemnitee has requested indemnification. Any
delay in providing the request will not relieve the Company from its obligations under this Agreement, except to the extent such
failure is prejudicial.

 

    	 

    	 

    

 

(b) Upon written
request by Indemnitee for indemnification pursuant to Section 10(a), a determination, if required by applicable law, with respect
to Indemnitee’s entitlement thereto shall be made in the specific case (i) if a Change in Control shall have occurred, by
Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee
or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less
than a quorum of the Company’s board of directors, (B) by a committee of Disinterested Directors designated by a majority
vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (C) if there are
no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the
Company’s board of directors, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Company’s
board of directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons
or entity making the determination with respect to Indemnitee’s entitlement to indemnification, including providing to such
person, persons or entity upon reasonable advance request any documentation or information that is not privileged or otherwise
protected from disclosure and that is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs
or expenses (including attorneys’ fees and disbursements) reasonably incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company, to the extent permitted by applicable law.

 

(c) In the event
the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(b), the Independent
Counsel shall be selected as provided in this Section 10(c). If a Change in Control shall not have occurred, the Independent Counsel
shall be selected by the Company’s board of directors, and the Company shall give written notice to Indemnitee advising him
or her of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel
shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Company’s board of directors,
in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the
identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten
days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be,
a written objection to such selection; provided, however, that such objection may be asserted only on the ground
that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section
1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper
and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated,
the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court
has determined that such objection is without merit. If, within 20 days after the later of (i) submission by Indemnitee of a written
request for indemnification pursuant to Section 10(a) hereof and (ii) the final disposition of the Proceeding, the parties have
not agreed upon an Independent Counsel, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution
of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel
and for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate,
and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel
under Section 10(b) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of this
Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to
the applicable standards of professional conduct then prevailing).

 

    	 

    	 

    

 

(d) The Company agrees
to pay the reasonable fees and expenses of any Independent Counsel and to fully indemnify such counsel against any and all Expenses,
claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

11. Presumptions
and Effect of Certain Proceedings.

 

(a) In making a determination
with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall, to the
fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall, to the fullest
extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by such person,
persons or entity of any determination contrary to that presumption.

 

(b) The termination
of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect
the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which
he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

(c) For purposes
of any determination of good faith, Indemnitee shall be deemed to have acted in good faith to the extent Indemnitee relied in good
faith on (i) the records or books of account of the Enterprise, including financial statements, (ii) information supplied to Indemnitee
by the officers of the Enterprise in the course of their duties, (iii) the advice of legal counsel for the Enterprise or its board
of directors or counsel selected by any committee of the board of directors or (iv) information or records given or reports made
to the Enterprise by an independent certified public accountant, an appraiser, investment banker or other expert selected with
reasonable care by the Enterprise or its board of directors or any committee of the board of directors. The provisions of this
Section 11(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed
to have met the applicable standard of conduct set forth in this Agreement.

 

    	 

    	 

    

 

(d) Neither the knowledge,
actions nor failure to act of any other director, officer, agent or employee of the Enterprise shall be imputed to Indemnitee for
purposes of determining the right to indemnification under this Agreement.

 

12. Remedies of
Indemnitee.

 

(a) Subject to Section
12(e), in the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 or 12(d) of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10 of this Agreement within 90
days after the later of the receipt by the Company of the request for indemnification or the final disposition of the Proceeding,
(iv) payment of indemnification pursuant to this Agreement is not made (A) within ten days after a determination has been made
that Indemnitee is entitled to indemnification or (B) with respect to indemnification pursuant to Sections 4, 5 and 12(d) of this
Agreement, within 30 days after receipt by the Company of a written request therefor, or (v) the Company or any other person or
entity takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other
action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee
hereunder, Indemnitee shall be entitled to an adjudication by a court of competent jurisdiction of his or her entitlement to such
indemnification or advancement of Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in arbitration with
respect to his or her entitlement to such indemnification or advancement of Expenses, to be conducted by a single arbitrator pursuant
to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking
an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence
such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply in respect
of a proceeding brought by Indemnitee to enforce his or her rights under Section 4 of this Agreement. The Company shall not oppose
Indemnitee’s right to seek any such adjudication or award in arbitration in accordance with this Agreement.

 

(b) Neither (i) the
failure of the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders
to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable
standard of conduct, nor (ii) an actual determination by the Company, its board of directors, any committee or subgroup of the
board of directors, Independent Counsel or stockholders that Indemnitee has not met the applicable standard of conduct, shall be
a defense to the action or create a presumption that Indemnitee has or has not met the applicable standard of conduct. In the event
that a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification,
any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo
trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial
proceeding or arbitration commenced pursuant to this Section 12, the Company shall, to the fullest extent not prohibited by law,
have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

    	 

    	 

    

 

(c) To the fullest
extent not prohibited by law, the Company shall be precluded from asserting in any judicial proceeding or arbitration commenced
pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. If
a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is entitled to indemnification, the
Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent
(i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statements
not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under
applicable law.

 

(d) To the extent
not prohibited by law, the Company shall indemnify Indemnitee against all Expenses that are incurred by Indemnitee in connection
with any action for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’
and officers’ liability insurance policies maintained by the Company to the extent Indemnitee is successful in such action,
and, if requested by Indemnitee, shall (as soon as reasonably practicable, but in any event no later than 60 days, after receipt
by the Company of a written request therefor) advance such Expenses to Indemnitee, subject to the provisions of Section 8.

 

(e) Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement to indemnification shall be required to be made
prior to the final disposition of the Proceeding.

 

13. Contribution.
To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amounts incurred by Indemnitee, whether for
Expenses, judgments, fines or amounts paid or to be paid in settlement, in connection with any claim relating to an indemnifiable
event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding
in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the events and transactions
giving rise to such Proceeding; and (ii) the relative fault of Indemnitee and the Company (and its other directors, officers, employees
and agents) in connection with such events and transactions.

 

14. Non-exclusivity.
The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s certificate of incorporation
or bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. To the extent that a change in Delaware
law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded
currently under the Company’s certificate of incorporation and bylaws and this Agreement, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change, subject to the restrictions
expressly set forth herein or therein. Except as expressly set forth herein, no right or remedy herein conferred is intended to
be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. Except as expressly set forth herein,
the assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment
of any other right or remedy.

 

    	 

    	 

    

 

15. Primary Responsibility.
The Company acknowledges that Indemnitee has certain rights to indemnification and advancement of expenses provided by [insert
name of fund] [and certain affiliates thereof] ([collectively,] the “Secondary Indemnitor[s]”). The
Company agrees that, as between the Company and the Secondary Indemnitor[s], the Company is primarily responsible for amounts required
to be indemnified or advanced under the Company’s certificate of incorporation or bylaws or this Agreement and any obligation
of the Secondary Indemnitor[s] to provide indemnification or advancement for the same amounts is secondary to those Company obligations.
To the extent not in contravention of any insurance policy or policies providing liability or other insurance for the Company or
any director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other Enterprise,
the Company waives any right of contribution or subrogation against the Secondary Indemnitor[s] with respect to the liabilities
for which the Company is primarily responsible under this Section 15. In the event of any payment by the Secondary Indemnitor[s]
of amounts otherwise required to be indemnified or advanced by the Company under the Company’s certificate of incorporation
or bylaws or this Agreement, the Secondary Indemnitor[s] shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee for indemnification or advancement of expenses under the Company’s certificate of incorporation
or bylaws or this Agreement or, to the extent such subrogation is unavailable and contribution is found to be the applicable remedy,
shall have a right of contribution with respect to the amounts paid. The Secondary Indemnitor[s] [are] [is an] express third-party
[beneficiaries] [beneficiary] of the terms of this Section 15.

 

16. No Duplication
of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder
(or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment for
such amounts under any insurance policy, contract, agreement or otherwise, subject to any subrogation rights set forth in Section
15.

 

17. Insurance.
To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, trustees,
general partners, managing members, officers, employees, agents or fiduciaries of the Company or any other Enterprise, Indemnitee
shall be covered by such policy or policies to the same extent as the most favorably-insured persons under such policy or policies
in a comparable position.

 

18. Subrogation.
In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

    	 

    	 

    

 

19. Services to
the Company. Indemnitee agrees to serve as a director of the Company or, at the request of the Company, as a director, trustee,
general partner, managing member, officer, employee, agent or fiduciary of another Enterprise, for so long as Indemnitee is duly
elected or appointed or until Indemnitee tenders his or her resignation or is removed from such position. Indemnitee may at any
time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation
of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position. This
Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.
Indemnitee specifically acknowledges that any employment with the Company (or any of its subsidiaries or any Enterprise) is at
will, and Indemnitee may be discharged at any time for any reason, with or without cause, with or without notice, except as may
be otherwise expressly provided in any executed, written employment contract between Indemnitee and the Company (or any of its
subsidiaries or any Enterprise), any existing formal severance policies adopted by the Company’s board of directors or, with
respect to service as a director of the Company, the Company’s certificate of incorporation or bylaws or the DGCL. No such
document shall be subject to any oral modification thereof.

 

20. Duration.
This Agreement shall continue until and terminate upon the later of (a) ten years after the date that Indemnitee shall have ceased
to serve as a director of the Company or as a director, trustee, general partner, managing member, officer, employee, agent or
fiduciary of any other Enterprise, as applicable; or (b) one year after the final termination of any Proceeding, including any
appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and
of any proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement relating thereto.

 

21. Successors.
This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company, and shall inure
to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. The Company shall require and cause any
successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business
or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such succession had taken place.

 

22. Severability.
Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company’s inability, pursuant to court order or other applicable law, to perform its obligations
under this Agreement shall not constitute a breach of this Agreement. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (i) the validity, legality and enforceability of the remaining
provisions of this Agreement (including without limitation, each portion of any section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (ii) such provision or provisions shall
be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties
hereto; and (iii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion
of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

    	 

    	 

    

 

23. Enforcement.
The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby
in order to induce Indemnitee to serve as a director of the Company, and the Company acknowledges that Indemnitee is relying upon
this Agreement in serving as a director of the Company.

 

24. Entire Agreement.
This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter
hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Company’s certificate
of incorporation and bylaws and applicable law.

 

25. Modification
and Waiver. No supplement, modification or amendment to this Agreement shall be binding unless executed in writing by the parties
hereto. No amendment, alteration or repeal of this Agreement shall adversely affect any right of Indemnitee under this Agreement
in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration
or repeal. No waiver of any of the provisions of this Agreement shall constitute or be deemed a waiver of any other provision of
this Agreement nor shall any waiver constitute a continuing waiver.

 

26. Notices.
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed:

 

(a) if to Indemnitee,
to Indemnitee’s address, facsimile number or electronic mail address as shown on the signature page of this Agreement or
in the Company’s records, as may be updated in accordance with the provisions hereof;

 

(b) if to the Company,
to the attention of the President at Reign Sapphire Corporation, 9465 Wilshire Boulevard, Level 3, Beverly Hills, CA 90212, or
at such other current address as the Company shall have furnished to Indemnitee, with a copy (which shall not constitute notice)
to Willa Qian, Esq., Qian & Co., 135 Main St., 9th Floor, San Francisco, CA 94105.

 

Each such notice or
other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand,
messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight
prepaid, specifying next-business-day delivery, one business day after deposit with the courier), (ii) if sent via mail,
at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit
of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile
transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address,
if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the
recipient’s next business day.

 

    	 

    	 

    

 

27. Applicable
Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed
and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect
to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the Company and Indemnitee hereby irrevocably
and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought
only in the Delaware Court of Chancery, and not in any other state or federal court in the United States of America or any court
in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court of Chancery for purposes of any
action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise
subject to service of process in the State of Delaware, VCorp Services, LLC, 1811 Silverside Road, Wilmington, County of New Castle,
19810 as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any
such action or proceeding against such party with the same legal force and validity as if served upon such party personally within
the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court of
Chancery, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware
Court of Chancery has been brought in an improper or inconvenient forum.

 

28. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but
all of which together shall constitute one and the same Agreement. This Agreement may also be executed and delivered by facsimile
signature and in counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs
to be produced to evidence the existence of this Agreement.

 

29. Captions.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

(Signature page follows)

 

    	 

    	 

    

 

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

 

	DIRECTOR	 	REIGN SAPPHIRE CORPORATION
	 	 	 
	By:	 	 	By:	 
	 	 	 
	Name: Joseph Segelman	 	Name: Joseph Segelman
	 	 	 	 	 

 

	Address:	 	 	Title: President and Chief Executive Officer
	 	 	 	 
	 	 	 
	 	 	 	 
	Facsimile:  	 	 	 
	 	 	 	 
	E-Mail:Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(“Agreement”) is entered as of the 1st day of April 2015 (“Effective Date”) by
and between Reign Sapphire Corporation, a Delaware corporation (“Company”), and Joseph Segelman (“Executive”).

 

WHEREAS, the
Board of Directors of the Company (“Board”) has determined that it is in the best interest of the Company to
secure the continuing services and employment of the Executive for the period provided in this Agreement and the Executive is willing
to render such services on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained, the Company and the Executive hereby agree as follows:

 

1.          Term.
The initial term (“Initial Term”) of employment under this Agreement shall commence and this Agreement shall
be effective as of the Effective Date and shall continue for a period ending on December 31, 2018, unless sooner terminated in
accordance with the terms hereof. The Initial Term shall be automatically extended for additional one-year periods (each such year
an “Extended Term”) on the same terms and conditions set forth in this Agreement, unless either party provides
notice of his or its intention not to extend this Agreement at least ninety (90) days prior to the expiration of the Initial
Term or, if previously extended, any Extended Term. The Initial Term and any Extended Term may be collectively referred to in this
Agreement as the “Term.”

 

2.            Employment
Duties.

 

(a)          Position.
Commencing upon the Effective Date and continuing through the period of the Executive’s employment by the Company, the Executive
shall serve as the President and Chief Executive Officer (“CEO”) of the Company and shall report to, and have
the duties, responsibilities and authority established by, the Board. As CEO, the Executive shall be responsible for running the
Company’s day-to-day operations and shall faithfully, diligently and competently perform the duties and responsibilities
of a CEO and such other duties and responsibilities as directed by the Board and are consistent with such position. The Executive
shall be appointed as a member of the Board, and thereafter, during the Term and for so long as the Company's common stock is
publicly traded, the Company shall cause the nominating and corporate governance committee of the Board (the “Nominating
Committee”) to nominate the Executive to serve as a member of the Board each year the Executive's term of Board service
is to be slated for reelection to the Board. If the Company's stockholders vote in favor of the Nominating Committee's nomination
of the Executive to serve as a member of the Board, the Executive agrees to serve in such capacity and also agrees that any such
board service shall be without additional compensation. If, during the Term, the Company's common stock becomes no longer publicly
traded, the Executive shall be a member of the Board. During the Term, the Executive agrees to serve on all othis boards of directors
of subsidiaries of the Company or its affiliates and the Executive agrees that any such board service shall be without additional
compensation.

 

    	 

    	 

    

 

(b)          Obligations.
The Executive agrees to devote his full business time and attention to the business and affairs of the Company. The foregoing,
however, shall not preclude the Executive from serving on corporate, civic or charitable boards or committees or managing personal
investments, so long as such activities do not interfere with the performance of the Executive’s responsibilities hereunder,
or leave for vacation or personal leave permitted hereunder or illness.

 

(c)          Confidential
Information and Inventions. As a condition of employment, the Executive shall, on or before the Effective Date, sign, deliver
and abide by a Confidential Information and Invention Assignment Agreement in the form approved by the Board.

 

3.            Compensation
and Benefits.

 

(a)          Base
Salary. During the period of the Executive’s employment by the Company, the Executive shall receive an annual base salary
of not less than $180,000 (“Base Salary”) payable in equal bi-weekly installments, less applicable withholdings.
Each year, the Board (or the compensation committee of the Board, if any) shall review the Base Salary and other compensation of
the Executive based upon performance and other factors deemed appropriate by the Board and make such increases as it deems fit.
For purposes of this Agreement, the term “Base Salary” shall mean the amount of the Executive’s base salary
established from time to time pursuant to this Section 3(a).

 

(b)          Annual
Performance Bonus. During the period of the Executive’s employment by the Company hiseunder, the Executive shall receive
each year an annual performance bonus (“Annual Performance Bonus”) based upon objective performance criteria
set by the Board.

 

(c)          Employee
Benefits. The Executive shall be entitled to the following benefits during the period of the Executive’s employment by
the Company hereunder: (i) to the extent permitted by applicable law, the Executive shall be entitled to receive benefits
and fringes (whether subsidized in part, or paid for in full by the Company) including, but not limited to, medical, dental and
disability insurance, which the Company now or in the future generally offers to its executive officers; (ii) the Company
will pay the entire amount of each monthly premium for full family coverage for the benefit of the Executive and the Executive’s
family under the Company’s health and dental insurance plans in which the Executive and the Executive’s family members
are eligible to participate; (iii) the Executive shall be eligible to participate in any of the Company’s savings, retirement,
401(k), deferred compensation, corporate owned life insurance, and other qualified and non-qualified plans sponsored by the Company;
(iv) the Executive shall be entitled to participate in all cash incentive, equity incentive, savings and retirement plans, practices,
policies, and programs applicable generally to other executives of the Company; and (v) the Executive shall be insured under
the Company’s director and officer liability insurance and shall be provided with an indemnification agreement effective
as of the Effective Date in the same form previously entered into with members of the Board. In addition, the Executive shall be
entitled to perquisites on the same terms and conditions as such perquisites are made available to other executive officers of
the Company.

 

    	 

    	 

    

 

(d)          Expenses.
The Executive shall be entitled to receive prompt reimbursement of all expenses reasonably incurred by him in connection with the
performance of his duties hereunder, in each case in accordance with policies established by the Board from time to time and upon
receipt of appropriate documentation. Upon the Executive’s termination of employment (as provided in Section 4),
any outstanding reimbursement requests must be submitted promptly and payment shall occur hereafter but no later than December 31st
of the calendar year following the calendar year in which such expenses were incurred.

 

(e)          Vacation.
The Executive shall be entitled to four (4) weeks of annual vacation in accordance with the policies periodically established
by the Board.

 

(f)          Initial
Stock Option Grant. The Company shall grant the Executive an initial stock option grant to purchase 10,000,000 shares of the
Company’s common stock (the “Options”). Such grant will be made and be effective as of the date the Board
adopts the Company’s 2015 Equity Incentive Plan (“Equity Incentive Plan”), at an exercise price equal to the
Fair Market Value (as defined under such Equity Incentive Plan) per share on the date of grant, shall have a ten-year option term
and shall be subject to the terms and conditions set forth in the Equity Incentive Plan and in the form of Share Option Agreement
attached hereto as Exhibit A. In addition to the Options, Executive shall, during the Term, be entitled to participate in
all cash incentive, equity incentive, savings and retirement plans, practices, policies, and programs applicable generally to other
executives of the Company.

 

4.            Termination
and Payments Upon Termination.

 

(a)          Death.
The Executive’s employment hereunder shall terminate upon the Executive’s death.

 

(b)          Disability.
Either the Executive or the Company shall be entitled to terminate the Executive’s employment for “Disability”
by giving the other party a Notice of Termination (as defined below). For purposes of this Agreement, “Disability”
shall mean (i) the Executive has, as determined by a doctor selected by the Executive and acceptable to the Company (such
acceptance not to be unreasonably withheld), suffered a physical or mental illness or injury that has impaired the Executive’s
ability to substantially perform the Executive’s full-time duties with the Company, with or without reasonable accommodation,
for a period of one-hundred eighty (180) consecutive days and that qualifies the Executive for benefits under Employer’s
group long-term disability plan, and (ii) the Executive has not substantially returned to full time employment before the
Termination Date (as defined below) specified in the Notice of Termination.

 

    	 

    	 

    

 

(c)          Cause.
The Company shall be entitled to terminate the Executive’s employment for Cause by giving the Executive a Notice of Termination.
For purposes of this Agreement, “Cause” shall mean: (i) the Executive’s misappropriation or theft
of the Company’s or any of its subsidiary’s funds or property, (ii) the Executive’s conviction or entering
of a plea of nolo contendere of any fraud, misappropriation, embezzlement or similar act, felony or crime involving
dishonesty or moral turpitude, (iii) the Executive’s material breach of this Agreement or failure to perform any of
his duties owed to the Company, (iv) the Executive’s commission of any act involving willful malfeasance or gross negligence
or the Executive’s failure to act involving material nonfeasance or (v) a material violation by the Executive of the
code of conduct of the Company or its subsidiaries (to the extent such code of conduct has been provided to or made available to
the Executive) or of any statutory or common law duty of loyalty to the Company or its subsidiaries,

 

The Executive’s employment with the
Company shall not be terminated for Cause unless he has been given written notice by the Board of its intention to so terminate
his employment (a “Notice of Cause”), such notice (i) to state in detail the particular act or acts or
failure or failures to act that constitute the grounds on which the proposed termination for Cause is based and (ii) to be
given within six months of the Board’s learning of such acts or failures to act. The Executive shall have 10 days after the
date that the Notice of Cause is given in which to cure any breach of this Agreement or acts or failures to act, to the extent
such cure is possible.

 

(d)          Without
Cause. The Board may terminate the Executive’s employment hereunder, without Cause, at any time and for any reason or
for no reason by giving the Executive a Notice of Termination (as defined below).

 

(e)          Voluntary
Termination. The Executive may terminate his employment hereunder at any time and for any reason by giving the Company a Notice
of Termination.

 

(f)          Notice
of Termination. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which indicates
the specific termination provision in this Agreement relied upon and which sets forth in reasonable detail, if applicable, the
facts and circumstances claimed to provide a basis (unless not required pursuant to Section 4(d)) for termination
of the Executive’s employment under the provision so indicated. The Termination Date (as defined below) specified in such
Notice of Termination shall be no less than two weeks from the date the Notice of Termination is given; provided, however, that
(i) if the Executive’s employment is terminated by the Company due to Disability, the date specified in the Notice of
Termination shall be at least thirty (30) days (but not more than ninety (90) days) from the date the Notice of Termination
is given to the Executive and (ii) if the Executive terminates his employment in accordance with Section 4(e) of
this Agreement, the date specified in the Notice of Termination shall be at least thirty (30) days from the date the Notice
of Termination is given to the Company.

 

    	 

    	 

    

 

(g)          Termination
Date. “Termination Date” shall mean the date of the termination of the Executive’s employment with
the Company and specifically (i) in the case of the Executive’s death, his date of death; (ii) in the case of the
expiration of the Term of this Agreement in accordance with Section 1, the date of such expiration; and (iii) in
all other cases, the date specified in the Notice of Termination, as defined in Section 4(f).

 

5.            Compensation
Upon Termination of Employment.

 

(a)          Compensation.
If during the Term of this Agreement, the Executive’s employment under this Agreement is terminated (i) by the Company
for Cause or (ii) by the Executive, the Company’s sole obligation hereunder shall be to pay the Executive the following
amounts earned, accrued or owing hereunder but not paid as of the Termination Date (collectively, “Accrued Compensation”):

 

		(i)	Base Salary unpaid through the Termination Date;

		(ii)	all other compensation which has been earned, accrued
or is owing, under the terms of the applicable plan, program or practice, to the Executive as of the Termination Date but not
paid, including, without limitation, the Annual Performance Bonus and any incentive awards under any incentive or bonus plan;

		(iii)	any amounts which the Executive had previously deferred;
and

		(iv)	reimbursement of any and all reasonable expenses incurred
in connection with the Executive’s duties and responsibilities under this Agreement in accordance with policies established
by the Board from time to time and upon receipt of appropriate documentation; and other or additional benefits and entitlements
in accordance with applicable plans, programs and arrangements of the Company.

 

For the purposes of Section 5(a)(ii),
to the extent that compensation has not been accrued under any incentive and bonus plan, the applicable metrics under each such
plan shall be pro-rated so that such metrics and the measurement of the performance applicable to such metrics shall be calculated
based on the number of days of the fiscal year in which the Executive was terminated prior to the Termination Date. The Accrued
Compensation shall be paid in a single lump-sum cash payment within ten (10) days following the Executive’s Termination
Date, except that any portion thereof required to be paid sooner under applicable law shall be paid by the applicable deadline.
The Executive shall not be entitled to any other payment after payment in full of the Accrued Compensation, other than any payment
required under any indemnification obligation of the Company and employee benefits to which the Executive is entitled under COBRA
(as defined in Section 5(f)), which obligations shall survive termination (collectively, “Post-Termination
Obligations”).

 

    	 

    	 

    

 

(b)          Disability.
If the Executive’s employment hereunder is terminated by either party by reason of the Executive’s Disability, the
Company’s shall (i) pay the Executive the unpaid Accrued Compensation through the Termination Date within thirty (30) days
following the Executive’s Termination Date, except that any portion thereof required to be paid sooner under applicable law
shall be paid by the applicable deadline and (ii) cause to be accelerated and vested, effective as of the Termination Date,
all equity compensation awarded to the Executive.

 

(c)          Death.
If the Executive’s employment hereunder is terminated due to his death, the Company shall:

 

		(i)	pay the Executive’s estate or his beneficiaries
(as the case may be) the unpaid Accrued Compensation through the Termination Date within thirty (30) days following the Executive’s
Termination Date, except that any portion thereof required to be paid sooner under applicable law shall be paid by the applicable
deadline

		(ii)	provide such assistance as is necessary to facilitate
the payment of any life insurance proceeds provided for in Section 3(e) of this Agreement that may be payable
to the Executive’s beneficiary or beneficiaries; and

		(iii)	cause to be accelerated and vested, effective as of the
Termination Date, all equity compensation awarded to the Executive.

 

(d)          Termination
by Company Without Cause. If during the Term of this Agreement, the Executive’s employment is terminated by the Company
without Cause pursuant to Section 4(d), the Company’s shall pay the Executive the following amounts:

		(i)	the Accrued Compensation;

		(ii)	an amount equal to the product of (x) two (2) times the sum of (y) Executive’s then
current annual Base Salary (such product referred to herein as the “Severance Payment”); and

		(iii)	the Post-Termination Obligations.

 

The Accrued Compensation and Severance
Payment shall be paid in a single lump-sum cash payment within thirty (30) days following the Executive’s Termination
Date, except that any portion thereof required to be paid sooner under applicable law shall be paid by the applicable deadline.

 

(e)          Determination
of Base Salary. For purposes of this Section 5, Base Salary shall be determined by the Base Salary at the
annualized rate in effect on the Termination Date.

 

    	 

    	 

    

 

(f)          Continuation
of Employee Benefits. The Company shall, at its expense, provide to the Executive and his beneficiaries continued participation
in all medical, dental, vision, prescription drug, hospitalization and life insurance coverages and in all other employee benefit
plans, programs and arrangements in which the Executive was participating immediately prior to the Termination Date, on terms and
conditions that are no less favorable than those that applied on the Termination Date, for a period of two years following the
Termination Date, if the Executive’s employment is terminated by the Company other than for Cause; provided that, if the
continued participation would reasonably give rise to any fines, penalties, or negative tax consequences to the Company or the
Executive (including without limitation, under the Patient Protection and Affordable Care Act), as determined by the Company in
good faith, the Company and the Executive shall, in good faith, discuss an alternative but mutually agreeable arrangement. In each
case, benefits required pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) will commence
after the applicable period has been completed. Notwithstanding the foregoing, the Company’s obligation under this Subsection
5(f) shall be reduced to the extent that equivalent coverages and benefits (determined on a coverage-by-coverage and benefit-by-benefit
basis) are provided under the plans, programs or arrangements of a subsequent employer.

 

(g)          No
Mitigation: No Offset. In the event of any termination of his employment hereunder, the Executive shall not be required to
mitigate the amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise and, except
as set forth expressly under the proviso in Subsection 5(f), no such payment or benefit shall be offset or reduced
by the amount of any compensation or benefit provided to the Executive in any subsequent employment.

 

(h)          Section 409A.
It is the intent of this Agreement that no payment to the Executive shall result in nonqualified deferred compensation within the
meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury
Regulations and applicable guidance promulgated thereunder. However, in the event that all, or a portion, of the payments set forth
in this Agreement meet the definition of nonqualified deferred compensation, the Company intends that such payments be made in
a manner that complies with Section 409A of the Code and any guidance issued thereunder. The Company shall take all necessary
steps to fulfill this intent, including, but not limited to, making any amendments to this Agreement as may be necessary to comply
with the provisions of Section 409A of the Code. In addition, the following delay of payment will not in and of itself constitute
a violation of the deferral or distribution requirements of Section 409A of the Code so long as such delay is based on the
Company’s reasonable understanding that such payment would violate U.S. federal securities laws or other applicable laws;
provided payment shall be made at the earliest date at which the Company reasonably anticipates making the payment will not cause
such violation.

 

Payment or reimbursement of any expenses
incurred by Executive pursuant to this Agreement, if any, other than reimbursements that would otherwise be exempt from income
or the application of Code Section 409A, shall be made promptly and in no event later than December 31 of the year following
the year in which such expenses were incurred, and the amount of such expenses eligible for payment or reimbursement, or in-kind
benefits provided, in any year shall not affect the amount of such expenses eligible for payment or reimbursement, or in-kind benefits
to be provided, in any other year, except for any limit on the amount of expenses that may be reimbursed under an arrangement described
in Code Section 105(b). Additionally, any right to expense reimbursement or in-kind benefits shall not be subject to liquidation
or exchange for another benefit.

 

    	 

    	 

    

 

For purposes of this Agreement, phrases
like “termination of employment,” “termination of Executive’s employment,” “Executive terminates
his employment”, and similar phrases shall be interpreted to comply with the requirements of Code Section 409A and the
Treasury regulations and applicable guidance promulgated thereunder.

 

6.          Successors
and Assigns.

 

(a) This Agreement
shall be binding upon and shall inure to the benefit of the Company, its successors and assigns and any successor or assign shall
perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession
or assignment had taken place. The term “Company” as used herein shall include any such successors and assigns.
The term “successors and assigns” as used herein shall mean a corporation or other entity acquiring or otherwise
succeeding to, directly or indirectly, all or substantially all the assets and business of the Company (including this Agreement)
whether by operation of law or otherwise.

 

(b)          Neither
this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, his beneficiaries or legal
representatives, except by will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s legal personal representative.

 

7.          Venue.
In the event of any controversy or claim between the Company or any of its affiliates and the Executive arising out of or relating
to this Agreement that is not settled by mutual agreement or arbitration pursuant to Section 18, such controversy
or claim (only to the extent arbitration is not required pursuant to Section 18) shall be determined in a court
of competent jurisdiction in Los Angeles County, California, or the federal court for Los Angeles County, California, and each
party waives any claim to have the matter heard in any other local, state, or federal jurisdiction.

 

8.          Severability.
If, for any reason, any provision of this Agreement is held invalid, illegal or unenforceable such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement not held so invalid, illegal or unenforceable, and each such other provision
shall, to the full extent consistent with law, continue in full force and effect. In addition, if any provision of this Agreement
shall be held invalid, illegal or unenforceable in part, such invalidity, illegality or unenforceability shall in no way affect
the rest of such provision not held so invalid, illegal or unenforceable and the rest of such provision, together with all other
provisions of this Agreement, shall, to the full extent consistent with law, continue in full force and effect. If any provision
or part thereof shall be held invalid, illegal or unenforceable, to the fullest extent permitted by law, a provision or part thereof
shall be substituted therefor that is valid, legal and enforceable.

 

    	 

    	 

    

 

9.          Headings.
The headings of sections are included solely for convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement.

 

10.         Withholding.
All amounts paid pursuant to this Agreement shall be subject to withholding for taxes (federal, state, local or otherwise) to the
extent required by applicable law.

 

11.         No
Conflicts. Each of the Company and Executive represents and warrants to the other party that neither the execution, delivery
and performance by the such person of this Agreement will conflict or be inconsistent with or result in any breach of any of the
terms, covenants, conditions or provisions of, any agreement to which such person is a party or which it or she may be subject.

 

12.         Notice.
For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of
Termination) shall be in writing and shall be deemed to have been duly given when personally delivered or three days after being
sent by sent by registered or certified mail, return receipt requested, postage prepaid, or upon receipt if overnight delivery
service or facsimile is used, addressed as follows:

 

	 	 	 
	To the Executive:	 	Joseph Segelman
	 	 	________
	 	 	________
	 	 
	To the Company:	 	Reign Sapphire Corporation
	 	 	9465 Wilshire Boulevard
	 	 	Beverly Hills, California 90212
	 	 	Attn: Chief Executive Officer

 

13.         Settlement
of Claims. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment,
defense or other right which the Company may have against the Executive.

 

14.         Survivorship.
Except as otherwise set forth in this Agreement, the respective rights and obligations of the Executive and the Company hereunder
shall survive any termination of the Executive’s employment.

 

    	 

    	 

    

 

15.         Miscellaneous.
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and the Company except for increases in the Base Salary, other compensation and benefits
provided for in Section 3. No waiver by either party hereto at any time of any breach by the other party hereto
of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver
of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.

 

16.         Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware (without
regard to principles of conflicts of law thereof that would call for the application of the substantive law of any jurisdiction
other than the State of Delaware).

 

17.         Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the employment of the
Executive by the Company and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between
the parties hereto with respect to the subject matter hereof. This Agreement may be executed in one or more counterparts.

 

18.         Arbitration.
All disputes or controversies arising in connection with this Agreement or the Executive's employment with the Company (whether
based on contract or tort or upon any federal, state or local statute, including but not limited to claims asserted under the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, any state Fair Employment Practices Act
and/or the Americans with Disability Act) shall be submitted to JAMS/ENDISPUTE for resolution in arbitration. The arbitration shall
be conducted in Los Angeles, California before a single arbitrator in accordance with the Employment Dispute Rules of the American
Arbitration Association and the Federal Arbitration Act, 9 U.S.C. §l, et. seq. The arbitrator shall have the right to award
to any party to such proceedings any right or remedy that is available under applicable law (including, without limitation, ordering
the losing party to reimburse the reasonable legal fees and expenses incurred by the winning party with respect to such proceedings
as may be provided by applicable law); provided that if the arbitrator determines that the Executive
has prevailed on at least one material issue in connection with such arbitration Executive shall be awarded reasonable attorney's
fees and expenses from the Company. The resolution of any such dispute or controversy by the arbitrator appointed in accordance
with the procedures of JAMS/ENDISPUTE shall be final and binding upon the parties hereto, subject to 9 U.S.C. §10. Each party
shall have the right to have the award made the judgment of a court of competent jurisdiction. Pending the resolution of any claim
under this Agreement, the Executive (and his beneficiaries) shall continue to receive all payments and benefits due under this
Agreement, except to the extent that the arbitrator otherwise provides.

 

19.         Attorneys’
Fees. In the event of any action for the breach of this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and expenses incurred in connection with such action.

 

[Remainder of page intentionally left blank.
Signature page follows].

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement
as of the day and year first above written.

 

	 	COMPANY:
	 	 
	 	Reign Sapphire Corporation
	 	A Delaware corporation
	 	 	 
	 	By:	 
	 	Name: Joseph Segelman
	 	Title: Chief Executive Officer
	 	 
	 	EXECUTIVE:
	 	 
	 	 
	 	Joseph Segelman

 

    	 

    	 

    

 

EXHIBIT A

FORM OF SHARE OPTION AGREEMENT

 

SHARE OPTION AGREEMENT

 

THIS SHARE OPTION
AGREEMENT (this “Agreement”) is made and entered into as of the __ day of _____ 2015 (“Grant Date”),
between Reign Sapphire Corporation, a corporation formed under the laws of the State of Delaware (the “Company”),
and Joseph Segelman (“Employee”).

 

The Company and Employee
desire to enter into this Agreement whereby the Company will grant Employee the options specified herein to acquire shares of the
Company’s common stock. Defined terms used in this Agreement without definition will have the meanings ascribed thereto in
the Company’s 2015 Incentive Equity Plan (the “Plan”), a copy of which is attached hereto as Exhibit
A. In the event a provision of this Agreement is inconsistent or conflicts with the provisions of the Plan, the provisions
of this Agreement will govern and prevail.

 

The parties hereto
agree as follows:

 

1. Plan Acknowledgment.
Each of the undersigned agree that this Agreement has been executed and delivered, and the share options have been granted hereunder,
in connection with and as a part of the compensation and incentive arrangements between the Company and Employee and, except as
otherwise specified herein, pursuant to each of the terms and conditions of the Plan.

 

2. Options.

 

(a) Option
Grants. The Company hereby grants to Employee, pursuant to the Plan, an option (the “Option”) to purchase
up to 10,000,000 shares of the Company’s common stock at an exercise price per share of $0.005 (the “Option Price”),
which is not less than the fair market value of a share of the Company’s common stock on the Grant Date. The Option Price
and the number of Option Shares issuable upon exercise of the Option will be equitably adjusted for any share split, share dividend,
reclassification or recapitalization of the Company’s common stock which occurs subsequent to the date of this Agreement.
The Option will expire on the close of business on the tenth anniversary of the date of this Agreement, subject to earlier expiration
in connection with the termination of Employee’s employment, as provided in Section 2(c) below. The
Option is not intended to be an “incentive stock option” within the meaning of Section 422 of the Code.

 

    	 

    	 

    

 

(b) Exercisability.
Except as otherwise provided for herein, 50% of the shares of common stock subject to the Option shall vest on the first anniversary
of the Grant Date and the remaining 50% of the shares shall vest in twelve (12) equal installments on the first day of each calendar
month following the first anniversary of the Grant Date beginning on _____ 1, 2016 and ending on _____ 1, 2017, provided that Employee
is continuously employed by the Company or its Subsidiaries from the Grant Date through such applicable vesting date. Notwithstanding
the foregoing, 100% of the shares of the Company’s common stock subject to the Option shall fully vest if the Company shall
successfully sell all of the shares of its common stock included in the primary offering of such common stock by the by the Company
pursuant to the registration statement on Form S-1 to be filed with the Securities and Exchange Commission within ninety (90) days
of the Grant Date; provided, however, that the failure of the Company to sell of the shares shall not interfere with the regular
vesting schedule in the previous sentence.

 

(c) Certain
Terminations of Employment. Notwithstanding anything in this Agreement or the Plan to the contrary, if Employee’s employment
with the Company is terminated by the Company without Cause (as defined in that certain Employment Agreement by and between the
Company and the Employee, dated the same date hereof (“Employment Agreement”)), then the number of shares of
the Company’s common stock subject to the Option that would have vested if the Employee had remained continuously employed
by the Company through the next six (6) calendar months immediately following the Termination Date (determined pursuant to Section 2(b) above)
shall be deemed to be vested and, together with all other vested shares of common stock, shall not be forfeited upon such termination
of employment.

 

(d) Sale of
the Company. Notwithstanding anything in the Plan to the contrary, 100% of the shares of the Company’s common stock subject
to the Option shall fully vest upon the consummation of a Sale of the Company and may be exercised in connection with such Sale
of the Company, if Employee’s employment with the Company or its subsidiaries has not terminated prior to the consummation
of such Sale of the Company. Notwithstanding the foregoing, if Employee’s employment with the Company is terminated by the
Company without Cause (as defined in the Employment Agreement) within three (3) months prior to the execution of a definitive
agreement that results in the Sale of the Company contemplated by such Agreement, then 100% of the shares of common stock subject
to the Option shall fully vest upon the consummation of a Sale of the Company and may be exercised in connection with such Sale
of the Company.

 

(e) Early
Expiration of Options. Any portion of the Options granted hereunder that have not vested and become exercisable prior to the
Termination Date (or that have not been deemed to have vested and become exercisable pursuant to Section 2(c) above)
will expire on the Termination Date and may not be exercised under any circumstance. Any portion of the Options granted hereunder
that have vested and become exercisable prior to the Termination Date will expire on the earlier of (i) 30 days after the
Termination Date (provided that such period shall be extended to (A) six (6) months after the Termination Date in the
event of Employee’s termination due to death or “disability” (as defined in the Employment Agreement) or (B) two
(2) years after the Termination Date in the event of Employee’s termination by the Company without Cause (as defined
in the Employment Agreement) and (ii) the close of business on the tenth anniversary of the date of this Agreement. Notwithstanding
any provision in this Agreement to the contrary, any portion of the Options granted hereunder which have not been exercised prior
to or in connection with a Sale of the Company shall expire upon the consummation of any such transaction.

 

    	 

    	 

    

 

(f) Procedure
for Exercise. At any time after all or any portion of the Options granted hereunder have become exercisable with respect to
any Option Shares and prior to the close of business on the tenth anniversary of the date of this Agreement (except as provided
for in Section 2(e) above), Employee may exercise all or any portion of the Options granted hereunder with
respect to Option Shares vested pursuant to Section 2(b) above by delivering written notice of exercise to
the Company, together with (i) a written acknowledgment that Employee has read and has been afforded an opportunity to ask
questions of management of the Company regarding all financial and other information provided to Employee regarding the Company,
and (ii) payment in full by delivery of a cashier’s, personal or certified check or wire transfer of immediately available
funds to the Company in the amount equal to the number of Option Shares to be acquired multiplied by the applicable option exercise
price.

 

(g) Securities
Laws Restrictions. Employee represents that when Employee exercises any portion of the Options he or she will be purchasing
the Option Shares represented thereby for Employee’s own account and not on behalf of others. Employee understands and acknowledges
that federal, state and foreign securities laws govern and restrict Employee’s right to offer, sell or otherwise dispose
of any Option Shares unless Employee’s offer, sale or other disposition thereof is registered under the Securities Act and
federal, state and foreign securities laws or, in the opinion of the Company’s counsel, such offer, sale or other disposition
is exempt from registration thereunder. Employee agrees that he or she will not offer, sell or otherwise dispose of any Option
Shares in any manner which would: (i) require the Company to file any registration statement (or similar filing under applicable
securities law) with the Securities and Exchange Commission or to amend or supplement any such filing or (ii) violate or cause
the Company to violate the Securities Act, the rules and regulations promulgated thereunder or any other applicable securities
law. Employee further understands that the certificates for any Option Shares which Employee purchases will bear the legend set
forth in the Plan or such other legends as the Company deems necessary or desirable in connection with the Securities Act or other
rules, regulations or laws.

 

(h) Limited
Transferability of the Options. The Options granted hereunder are personal to Employee and are not transferable by Employee
except pursuant to the laws of descent or distribution. Only Employee or his legal guardian or representative may exercise the
Options granted hereunder.

 

(i) Section 83(b)
Election. Within 30 days after Employee has exercised any portion of the Options, in the event Employee is subject to United
States federal income tax, Employee may make an effective election with the Internal Revenue Service under Section 83(b) of
the Code relative to the Option Shares received by Employee pursuant to the exercise of such portion of the Options.

 

    	 

    	 

    

 

3. Employee’s
Representations. Employee hereby represents and warrants to the Company that (i) the execution, delivery and performance
of this Agreement by Employee does not and will not conflict with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which Employee is a party or by which he or she is bound, (ii) except as has been
expressly disclosed to the Company prior to the date of this Agreement, Employee is not a party to or bound by any employment agreement,
noncompete agreement or confidentiality agreement with any other person or entity (other than the Company or one of its Subsidiaries)
and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding
obligation of Employee, enforceable in accordance with its terms. Employee hereby acknowledges and represents that he or she has
consulted with (or has had an opportunity to consult with) independent legal counsel regarding his or her rights and obligations
under this Agreement (including, without limitation, the Plan) and that he or she fully understands the terms and conditions contained
herein and therein.

 

4. Notices.
Any notices required or permitted under this Agreement or the Plan will be delivered in accordance with the requirements of the
Plan.

 

5. Third Party
Beneficiaries; Successors and Assigns. The parties hereto acknowledge and agree that the Investors are third party beneficiaries
of this Agreement and the Plan. Except as otherwise provided herein, this Agreement and the Plan shall bind and inure to the benefit
of and be enforceable by Employee, the Company and their respective heirs, successors and assigns.

 

6. Complete
Agreement. This Agreement and the Plan and the other documents referred to herein and therein embody the complete agreement
and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among
the parties, written or oral, which may have related to the subject matter hereof in any way.

 

7. No Strict
Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express
their mutual intent, and no rule of strict construction shall be applied against any party.

 

8. Counterparts.
This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.

 

9. Governing
Law. This Agreement will be subject to the governing law provisions of the Plan as if fully set forth in this Agreement.

 

10. Remedies.
Each of the parties to this Agreement will be entitled to any of the remedies specified in the Plan.

 

    	 

    	 

    

 

11. Amendment
and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of the Board and
Employee, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity,
binding effect or enforceability of this Agreement.

 

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

 

	 	Reign Sapphire Corporation
	 	 	 
	 	By:	 
	 	 	Joseph Segelman
	 	Its: 	
        President and

        Chief Executive Officer

	 	 
	 	 
	 	Joseph Segelman (“Employee”)

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