EXECUTIVE
EMPLOYMENT AGREEMENT


 


THIS
EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is entered into this 16th day of January, 2018, by and between Jeremy
J. Reichmann (“Executive”) and Tal Consolidated Inc. (the “Company”), and shall become effective upon
approval by the Company’s Board of Directors (the “Board”) on effective date of the Company’s initial
public offering (the “Effective Date”).


 


WHEREAS,
in accordance with the foregoing, the Company and Executive desire to enter into this Agreement to set forth the terms of Executive’s
employment with the Company, effective as of the Effective Date.


 


NOW,
THEREFORE, intending to be legally bound and in consideration of the mutual covenants and conditions herein contained, the parties
hereby agree as follows:


 


1.       Employment.
As of the Effective Date, the Company hereby employs the Executive, and the Executive hereby accepts such employment and shall
perform Executive’s duties and responsibilities, in accordance with the terms, conditions and provisions hereinafter set
forth.


 


(a)
Duties and Responsibilities. The Executive shall serve as the Chief Executive Officer (“CEO”) of the Company.
In such role, Executive will report to the Board and shall devote substantially all of his business time and attention and his
best efforts and ability to the operations of the Company and its subsidiaries. The Executive shall be responsible for running
the Company’s day-to-day operations and shall perform faithfully, diligently and competently 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 foregoing
shall not be construed as preventing the Executive from (a) making passive investments in other businesses or enterprises consistent
with Company’s code of conduct, or (b) engaging in any other business, civic or charitable activity consistent with Company’s
code of conduct, provided that such activities do not interfere in any substantial respect with the performance of Executive’s
responsibilities to the Company.


 


(b)
Base Salary. For all the services rendered by the Executive hereunder, the Company shall pay the Executive a base salary
at the annual rate of $400,000, payable in accordance with the Company’s normal payroll practices. The Executive’s
base salary shall be reviewed annually by the Board (or the compensation committee of the Board), pursuant to the Company’s
normal compensation and performance review policies for executives, and may be increased, but not decreased. The amount of any
such increase for each year shall be binding on the Company under this Agreement. The term “Base Salary” herein shall
mean the amount of Executive’s base salary established from time to time pursuant to this Section 2(b).


 


(c)
Incentive Bonus. Executive shall be entitled to participate in the Tal Consolidated Inc. 2018 Incentive Plan or any new
or amended similar plan that may be adopted by the Company (the “Incentive Plan”), under which the Executive shall
be eligible for annual awards thereunder in addition to his Base Salary. The Executive’s target annual bonus under the Plan
shall be 50% of his Base Salary in cash, equity, any other award that may be awarded under the Plan or any combination thereof
as is allowed under the Plan (“Target Bonus”), provided that the Executive’s actual incentive bonus each year
may be higher or lower as determined by the Board (or the compensation committee thereof) (the “Annual Bonus”). Any
Annual Bonus earned by Executive shall be paid to the Executive when bonuses under the performance period in question are paid
to similarly-situated employees of the Company. The cash incentive awards for performances in connection with the Company’s
initial Public Offering under the Plan shall be calculated separately, paid in addition to, and not be deemed to be part of, any
Annual Bonus.


 




    	 



     


    




 


(d)
Retirement, Pension, Deferred Compensation, Insurance and Other Benefit Plans and Programs. The Executive shall be entitled
to (a) participate in all employee retirement, pension, deferred compensation, insurance and other benefit plans and programs
adopted and maintained by the Company for the benefit of employees and be entitled to additional compensation in an amount equal
to the cost of any such benefit plan or program if the Executive chooses not to participate in any such program. The Executive
shall be entitled to receive vacation days, holidays, floating holidays and applicable sick leave in accordance with the amount
of these benefits afforded to the Company’s senior executives.


 


(e)
Car and Credit Card Rewards Benefits. In addition to his Base Salary and Annual Bonus, the Executive shall be entitled
to (i) an allowance for a car payment of up to $600 per month and (ii) sole discretion to award any credit card points or similar
awards the Company and its subsidiaries, including Ram Distribution Group LLC, Taldepot.com LLC and Lady Shipper LLC, accumulates,
and with respect to such points or awards, the Executive shall be entitled to reimbursement by the Company for any tax liability
he may incur as a result of such benefits.


 


(f)
Reimbursement of Expenses. The Executive shall be provided with reimbursement of reasonable expenses related to the Executive’s
employment by the Company in accordance with the Company’s normal business expense reimbursement practices.


 


2.       Termination.
The term of the Executive’s employment under this Agreement shall terminate on the third (3rd) anniversary of the Effective
Date, unless (i) renewed by the Board (or the compensation committee thereof) and for an additional three-year term, or for successive
three year term thereafter; (ii) earlier terminated as provided in this Section (during the initial term of this Agreement or
during any renewal term).


 


(a)
Termination Without Cause and Resignation for Good Reason. The Company may terminate the Executive’s employment under
this at any time without Cause (as defined below) upon not less than thirty (30) days’ prior written notice to the Executive;
provided, however, that, in the event that such notice is given, the Executive shall be allowed to seek other employment during
such notice period. In addition, the Executive may terminate the Executive’s employment by voluntarily resigning for Good
Reason (as defined below). The Executive shall give the Company not less than thirty (30) days’ prior written notice of
a resignation for Good Reason. In the event the Executive’s employment is terminated without Cause or the Executive resigns
for Good Reason, in either case, then in addition to all accrued and unpaid compensation, the Executive shall be entitled to continue
to receive his annual Base Salary, allowance for car payments pursuant to Section 1.2(e) of this Agreement, and annual benefits
pursuant to Section 1(d) of this Agreement through the end of the three-year term under this Agreement (the “Severance Period”).
During the Severance Period, in addition to receiving his Base Salary, car payment allowance, and benefits, the Executive shall
be entitled at the end of each year during the Severance Period an annual bonus in an amount equal to the Salary Bonus earned
during the previous fiscal year from the date of termination or resignation (the Base Salary, car payments, benefits and Salary
Bonus to be paid during the Severance Period collectively referred to herein as “Severance”). Severance shall be paid
in accordance with Employer’s regular payroll practices during the Severance Period.


 




    	 



     


    




 


(b)
Cause. “Cause” in this Section 2 means (i) (A) material failure by the Executive to carry out or comply with
any lawful and reasonable directive of the Board consistent with the terms of this Agreement, or (B) willful failure by the Executive
to substantially perform the Executive’s duties and responsibilities under this Agreement which, in either case, is not
promptly remedied within 10 days after the Company gives the Executive written notice specifying such failure or breach in reasonable
detail; (ii) the commission by the Executive of (A) a felony or (B) any other crime involving moral turpitude (it being understood
that in the event that, subsequent to a termination by the Company for Cause based solely on this clause (ii), the Executive is
determined by a court or other tribunal not to have committed the applicable offense then Executive shall have the right to receive
Severance; (iii) the commission by the Executive of theft, fraud, breach of trust or any material act of dishonesty involving
the Company or its subsidiaries or, in their capacities as such, any of its customers, suppliers or other business relations,
or (iv) a material violation by the Executive of the code of conduct of the Company or of any statutory or common law duty of
loyalty to the Company, which is not promptly remedied (if such violation is capable of being remedied) within no less than 10
days after the Company gives Executive written notice specifying such breach in reasonable detail.


 


(c)
Good Reason. “Good Reason” in this Section 2 means, without the Executive’s express written consent (which
may be withheld for any reason or no reason), any of the following occurrences: (i) the Company’s material breach of this
Agreement; (ii) the Company changing the location of the Executive’s principal work location to a location more than thirty
(30) miles from such location; (iii) any material adverse change in the nature or scope of the Executive’s authority, duties
or responsibilities, including, but not limited to, the failure of the Company to continue the Executive in a position having
the responsibilities of Chief Executive Officer; or (iv) the Company mergers with, or more than 50% of its shares or assets are
bought by, another person or entity.


 


(d)
COBRA. If the Executive is eligible for and elects to receive continuation group health coverage mandated by Section 4980B
of the Internal Revenue Code or similar state laws (“COBRA”) during the Severance Period, the Executive will be responsible
for paying such COBRA premiums and the Company will reimburse Executive for the amount of the COBRA premiums (“Health Care
Continuation”).


 


(e)
Resignation Without Good Reason. The Executive may terminate his employment by voluntarily resigning other than for Good
Reason upon sixty (60) days’ prior written notice. In such event, (a) after the Executive’s date of resignation, no
further payments and benefits shall be due under Section 2 of this Agreement, and (b) the Executive shall receive all accrued
and unpaid compensation.


 


(f)
Termination for Cause. The Company may terminate the Executive’s employment at any time for Cause. In such event,
(a) after the Executive’s date of termination, no further payments and benefits shall be due under Section 2 of this Agreement,
and (b) Executive shall receive all accrued and unpaid compensation.


 


(g)
Notice. Any termination of the Executive’s employment or resignation shall be communicated by a written notice to
the other party hereto specifying the reason and the date of termination or resignation.


 




    	 



     


    




 


3.       Confidentiality.
Any and all information of the Company, whether or not in writing, that is not generally known by others outside the Company,
and which, if disclosed, would assist in competition against the Company, shall be deemed “Confidential Information.”
Any and all Confidential Information which the Executive creates or has access to as a result of his employment and other associations
with the Company is and shall remain the sole and exclusive property of the Company. The Executive will never, directly or indirectly,
use or disclose any Confidential Information, except (i) as required for the proper performance of his or her regular duties for
the Company; (ii) as expressly authorized in writing in advance by the Company; (iii) as required by applicable law or regulation;
(iv) to his or her attorneys, accountants, consultants and other professionals to the extent necessary to obtain their services
in connection with monitoring his in the Company, his compensation or his duties to the Company; or (v) disclosing information
that has been or is hereafter made public through no act or omission of the Executive in violation of this Agreement. This restriction
shall continue to apply after the termination of the Executive’s employment, howsoever caused. The Executive shall furnish
prompt notice to the Company of any required disclosure of Confidential Information sought pursuant to subpoena, court order or
any other legal process or requirement, and shall provide the Company a reasonable opportunity to seek protection of the Confidential
Information prior to any such disclosure, to the greatest extent time and circumstances permit. All documents, records and files,
in any media of whatever kind and description, relating to the business, present or otherwise, of the Company, and any copies
thereof, shall be the sole and exclusive property of the Company.


 


4.       Non-Competition
and Non-Solicitation.


 


(a)
Non-Competition. During the twelve (12) month period immediately following the termination of the Executive’s employment
or the Executive’s resignation for any reason, the Executive will not work for or provide services to, in any capacity,
whether as an employee, independent contractor or otherwise, whether with or without compensation, to any company that materially
competes with the Company and that has any business location within a city, or within a 50 miles radius of a city, in which the
Company has a business location. The foregoing shall not prevent passive ownership by the Executive of no more than 5% of the
equity securities of any company.


 


(b)
Non-Solicitation. During the twelve (12) month period immediately following the termination of the Executive’s employment
for any reason, the Executive will not, directly or indirectly, (i) solicit, encourage or induce any customer of the Company to
terminate or diminish in any material respect its relationship with the Company; or (ii) seek to persuade or induce any such customer
or prospective customer of the Company to conduct with anyone else any substantial business or activity which such customer or
prospective customer conducts or could conduct with the Company; (iii) hire or solicit for hiring any employee of the Company
or seek to persuade or induce any employee of the Company to discontinue employment with the Company, or (iv) hire or engage any
independent contractor providing services to the Company, or solicit, encourage or induce any independent contractor providing
services to the Company to terminate or materially diminish in any substantial respect its relationship with the Company.


 


5.       Indemnification
and Insurance.


 


(a)
Indemnification by the Company. The Company shall indemnify the Executive in accordance with the Company’s Articles
of Incorporation, against all costs, charges and expenses incurred or sustained by the Executive, including the cost of legal
counsel, in connection with any action, suit or proceeding to which the Executive may be made a party by reason of the Executive
being or having been an officer, director, or employee of the Company or any of its subsidiaries or affiliates.


 




    	 



     


    




 


(b)
Insurance. The Executive shall be covered during the entire term of this Agreement and thereafter for at least six (6)
years by officer and director liability insurance in amounts and on terms similar to that afforded to other executives and/or
directors of similarly situated publicly traded companies, which such insurance shall be paid by the Company.


 


6.       Miscellaneous.


 


(a)
Amendments. This Agreement sets forth the entire understanding between the parties hereto with respect to the subject matter
hereof and cannot be changed, modified, extended or terminated except upon written amendment approved by the Board and executed
on its behalf by a duly authorized officer (other than the Executive) and by the Executive.


 


(b)
Assignment. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto,
except that the duties and responsibilities of the Executive under this Agreement are of a personal nature and shall not be assignable
or delegable in whole or in part by the Executive.


 


(c)
Severability. If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated
to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or
application of this Agreement which can be given effect without the invalid or unenforceable provision or application and shall
not invalidate or render unenforceable such provision or-application in any other jurisdiction.


 


(d)
Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of New York law.


 


IN
WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Agreement as of the date first above written.


 








	 	TAL CONSOLIDATED INC.
	 	 	 
	 	 /s/ Jeremy J. Reichmann  
	 	Name:	Jeremy
    J. Reichmann
	 	Title:	Authorized
    Signatory
	 	 	 
	 	EXECUTIVE



 


	 	 /s/
    Jeremy J. Reichmann 
	 	Jeremy
    J. Reichmann