Exhibit 10.1


 


EMPLOYMENT AGREEMENT


 


The
Employment Agreement (the “Agreement”) is made and entered into effective as of March 24, 2022 (the “Effective
Date”) by and between Fresh Vine Wine, Inc., a Nevada corporation (the “Company”), and Ellen Scipta (“Employee”)
(the Company and Employee are referred to herein individually as a “Party” and collectively as the “Parties”).


 


WHEREAS, the Company desires
to employ or retain Employee in accordance with the terms and conditions of this Agreement; and wishes to obtain reasonable protection
against unfair solicitation of the Company’s customers and employees by Employee during and following termination of employment
and to protect itself against unfair competition and the use of its confidential business and technical information.


 


WHEREAS, Employee wishes to
provide services to the Company in exchange for compensation and is willing to grant the Company the benefits of the various covenants
contained herein.


 


Now,
Therefore, in consideration of the foregoing facts, the mutual covenants set forth herein and for other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:


 


1. Employment.
The Company hereby agrees to employ Employee, and Employee hereby accepts such employment, subject to all of the terms and conditions
of this Agreement. If Employee’s employment with the Company commences prior to the filing with the Securities and Exchange Commission
of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, Employee will be appointed to serve in
the position of Chief Financial Officer immediately following such filing, and Employee will accept such appointment. During the term
of Employee’s employment pursuant to this Agreement, Employee shall serve the Company faithfully and to the best of her ability
and shall devote her full business and professional time, energy, knowledge, skill and diligence to the performance of her duties. Employee
shall perform such services and duties in connection with the business and affairs of the Company as are customarily incident to Employee’s
position and as may reasonably be assigned or delegated to Employee by the Chief Executive Officer of the Company (“CEO”)
and the Company’s Board of Directors (the “Board”). Employee shall perform such duties under the direction of,
and shall report to, the Chief Executive Officer of the Company (“CEO”), and the Board, and shall comply with the Company’s
reasonable policies and procedures. The duties to be performed by Employee hereunder shall be performed primarily at the offices of the
Company in the Minneapolis, Minnesota metropolitan area, subject to reasonable travel requirements on behalf of the Company, or such other
place as the Company may reasonably designate. Notwithstanding Employee’s obligation to devote her full business and professional
time, energy, knowledge, skill and diligence to the performance of her duties with the Company, with the prior written approval of the
CEO or the Board, Employee may serve as an independent board member of one or more public or private entities; provided that such service
does not violate the restrictive covenants set forth in Section 7 of this Agreement, such entities are not competitive with the Company,
and that such service does not interfere with Employee’s duties with the Company.


 


2. Term
of Employment. The Company and Employee agree that this Agreement, and Employee’s employment with the Company hereunder, is
for an indefinite term and will continue until terminated pursuant to Section 5 (the “Employment Period”). Nothing
in this Agreement modifies or is intended to modify the at-will employment relationship between Employee and the Company. Only a written
agreement signed by Employee and a manager or officer on behalf of the Company may modify the at-will employment relationship between
the Company and Employee.


 



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3. Salary
and Benefits.


 


(a) Salary.
During the Employment Period, the Company will pay Employee an annualized base salary (the “Salary”) of Two Hundred
Fifty-Five Thousand Dollars ($255,000) (gross), less applicable income taxes and other legally required withholding and any legally permitted
deductions that Employee voluntarily authorizes in writing. The Salary shall be payable in installments in accordance with the Company’s
regular payroll practices, commencing, if ever, on the Effective Date. The Company will review Employee’s Salary no less than annually
and may, in its sole discretion, adjust the Salary upon such review; provided, however, that the Company may not reduce Employee’s
Salary during the Employment Period to less than Two Hundred Fifty- Five Thousand Dollars ($255,000) without Employee’s consent.


 


(b) Performance
Bonus. During the Employment Period, Employee will be eligible to receive annual performance-based incentive compensation in the form
of a cash bonus (a “Bonus”) which would be in addition to Salary, based on Employee’s performance as determined
by the Board (or a compensation committee thereof) for each calendar year during the Employment Period, commencing in 2022. The target
amount of the Bonus shall be equal to sixty-five percent (65%) (One Hundred Sixty Five Thousand ($165,000) in year 1), of Employee’s
Salary, with the amount of the actual Bonus payable for each year determined by the Board (or a compensation committee thereof) in its
discretion based on Employee’s satisfaction of performance objectives to be determined by the Board (or a compensation committee
thereof) and communicated to Employee; provided, however, that actual Bonus payable for 2022 shall in no event be less than Fifty Thousand
Dollars ($50,000). Achievement of performance objectives for each year shall be determined by the Board (or compensation committee there)
within 60 days after the end of the calendar year; and the Bonus, if earned, will be paid in a lump sum promptly following such determination,
but no later than 75 days after the end of the calendar year, provided that the Employee remains employed by the Company on such date.
At the sole discretion of the Board, Employee may receive additional bonuses (each, a “Discretionary Bonus”) based
upon her performance on behalf of the Company and/or the Company’s performance. Discretionary Bonus, if any, shall be payable either
as a lump-sum payment or in installments, in such amounts, in such manner and at such times as may be determined by the Board in its sole
discretion.


 


(c) Equity
Grant Signing Bonus. On the Effective Date, the Company will grant to Employee:


 


(i) One
Hundred Thousand (100,000) shares of restricted stock (“Restricted Stock”), which shall be subject to transfer and
forfeiture restrictions, one-third of which will lapse on the date of grant, and one-third of which will lapse on each of the one-year
and two-year anniversary of the date of grant; and


 


(ii) a
stock option (the “Option”) to purchase Two Hundred Thousand (200,000) shares of the Company’s common stock at
a per share exercise price equal to the fair market value of the Company’s common stock on the date of grant, one-third of which
will vest on the date of grant, and one-third of which will lapse on each of the one-year and two-year anniversary of the date of grant.


 


The Restricted Stock and the
Stock Option will be governed by the Company’s 2021 Equity Incentive Plan (the “Equity Incentive Plan”) and a
restricted stock agreement and a stock option agreement that will incorporate the Restricted Stock and Option-related provisions contained
in this subsection, which agreement shall be entered into by Employee as a condition to the grant.


 






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(d) Equity-Based
Compensation and Awards.


 


(i) During
the Employment Period, and commencing in 2023, the Company will make annual grants to Employee of restricted stock unit awards (“RSUs”)
having a value equal to thirty-five percent (35%) of the Salary, as determined in good faith by the Board (or a compensation committee
thereof). The RSUs will vest one-third annually commencing on the first anniversary of the date of grant. The RSUs will be governed by
the Equity Incentive Plan and a restricted stock unit agreement that will incorporate the RSU-related provisions contained in this subsection,
which agreement shall be entered into by Employee as a condition to the grant. The date of grant of each RSU award will be a date determined
by the Board (or a compensation committee thereof) that is in or around the first quarter of the calendar year.


 


(ii) During
the Employment Period, and commencing in 2023, the Company will make annual grants to Employee of stock options (each a “Stock
Option”) to purchase shares of common stock of the Company. The number of shares of common stock underlying each Stock Option
will be determined such that such Stock Option has a value equal to seventy percent (70%) of the Salary, as determined in good faith by
the Board (or a compensation committee thereof). Each Stock Option shall vest one-third annually commencing on the first anniversary of
the date of grant and the per share exercise price for such Stock Option will be equal to the closing price as of the date of grant. Each
Stock Option will be governed by the Equity Incentive Plan and a stock option agreement that will incorporate the Stock Option related
provisions contained in this subsection, which agreement shall be entered into by Employee as a condition to the grant. The date of grant
of each RSU award will be a date determined by the Board (or a compensation committee thereof) that is in or around the first quarter
of the calendar year.


 


(iii) Employee
may receive annual and periodic equity-based compensation awards, with the amount of such awards granted and the terms and conditions
thereof to be determined from time to time by and in the sole discretion of the Board or a committee thereof.


 


(e) Employee
Benefits. Employee shall be entitled to the usual and customary benefits and perquisites which the Company generally provides to its
full-time employees under its applicable plans and policies. Employee shall accrue standard paid vacation during the Employment Period
in accordance with the Company’s policies in effect from time to time. Notwithstanding the foregoing, Employee shall, during the
Term, be entitled to no less than twenty (20) days of paid vacation per calendar year (or pro-rata portion thereof), in addition to holidays
observed by the Company; provided that Employee shall only be entitled to carry vacation forward to the next year of employment if and
to the extent permitted by the Company’s policies in effect from time to time.


 


(f) Expenses.
The Company shall reimburse Employee for the reasonable and necessary expenses incurred in connection with the performance of her duties
in accordance with the written policies and procedures of the Company governing such expenses, upon presentation of appropriate vouchers
for said expenses.


 


(g) Withholding.
The Company shall withhold all applicable federal, state and local taxes and social security and such other amounts as may be required
by law from all amounts payable to Employee under this Agreement.


 


4. Representations
and Warranties by Employee. Employee hereby represents and warrants to the Company that neither the execution or delivery of this
Agreement nor the performance by Employee of Employee’s duties and other obligations hereunder violate or will violate any statute,
law, determination or award, or conflict with or constitute a default or breach of any covenant or obligation under (whether immediately,
upon the giving of notice or lapse of time or both) any prior employment agreement, contract, or other instrument to which Employee is
a party or by which Employee is bound.


 



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5. Termination of
Employment.


 


(a) Employee
and the Company agree that Employee’s employment is at-will and that either Employee or the Company may terminate Employee’s
employment, at any time, with or without any cause, with no prior notice. In the event of any termination of Employee’s employment,
the Company shall pay Employee (i) any unpaid Salary accrued prior to the termination on the Company’s next regular payday, and
(ii) any unpaid Bonus amounts earned for the year prior to the year in which termination of employment occurs. The Company shall also
reimburse Employee in accordance with and subject to the requirements of the Company’s expense reimbursement practices for any reasonable
and necessary business expenses incurred by Employee on behalf of the Company on or before the date on which her employment terminates,
and reported and properly documented on expense reports.


 


(b) Notwithstanding
the at-will employment relationship, if (i) Employee’s employment under this Agreement is terminated by the Company for a reason
other than (A) for “Cause” (as defined below), or (B) as a result of Employee’s death or “disability”
(as defined below), or (ii) Employee voluntarily terminates her employment with the Company for “Good Reason” (as defined
below), then, subject to Employee continuing to fulfill her obligations hereunder that survive such termination, or under any other confidentiality,
non-solicitation and/or non-competition agreement with the Company to which Employee is or may become a party, Employee shall be entitled
to receive (i) continued Salary payments specified in Section 3(a) for no less than six (6) months following termination of employment
(the “Severance Period”), (ii) a prorated portion of Employee’s target annual incentive bonus for the fiscal
year in which the Employment Period is terminated (based upon the number of days during such fiscal year that Employee was employed under
this Agreement), which shall be paid pro-rata over the Severance Period, and (iii) reimbursement of reasonable fees incurred by Employee
for a reputable third-party outplacement organization selected by Employer that is reasonably acceptable to Employee, during the Severance
Period or until Employee secures subsequent employment, if sooner (the “Severance Benefits”). If Employee is eligible
for and elects to continue group health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”),
Employee may do so at Employee’s expense. In order to resign for Good Reason, (i) Employee shall give the Company a written notice
providing reasonable notice and detail of the alleged Good Reason within sixty (60) days following the initial existence of the condition
that constitutes the alleged Good Reason, (ii) the Company shall have thirty (30) days following such notice to cure such Good Reason,
and (iii) such resignation actually occurs within two (2) years following the initial existence of the condition that constitutes Good
Reason.


 


(c) Unless
the agreement governing the grant of an equity award specifically provides otherwise, if (i) Employee’s employment under this Agreement
is terminated by the Company (or its successor) for a reason other than (A) for Cause, or (B) as a result of Employee’s death or
“disability”, or (ii) Employee voluntarily terminates her employment with the Company for Good Reason, in either case (y)
within twelve (12) months following the occurrence of a Change in Control (as defined below) or (z) within ninety (90) days prior to a
Change in Control, then in addition to the severance benefits provided under Section 5(b) above, upon the occurrence of the Change in
Control (x) the restrictions on any and all shares of restricted stock awards shall lapse immediately, (y) any and all outstanding unvested
stock options, restricted stock units, stock appreciation rights and other equity based awards granted to Employee under any Company equity
incentive plan that are subject to vesting requirements shall immediately become exercisable in full, and (z) any and all performance
units and other performance-based equity incentives shall be deemed earned at 100% of the target level thereof. For avoidance of doubt,
if Employee’s employment under this Agreement is terminated by the Company (or its successor) for a reason other than for Cause,
or Employee voluntarily terminates her employment with the Company for Good Reason, in either case within ninety (90) days prior to a
Change in Control, the portion of Employee’s then-outstanding and unvested equity awards that is eligible to vest and become exercisable
pursuant to this Section 5(c) will remain outstanding until ninety (90) days following the date of termination or the occurrence of a
Change in Control, whichever is sooner, so that any additional benefits due pursuant to this Section 5(c) may be provided if a Change
in Control occurs ninety (90) days following the date of termination; provided that in no event will any of Employee’s stock options
remain outstanding beyond the date on which the original term thereof expires (without regard to the termination of Employee’s employment).
For purposes of this Agreement, “Change in Control” means (i) the acquisition, directly or indirectly, following the
date hereof by any person (as such term is defined in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended),
in one transaction or a series of related transactions, of securities of the Company representing in excess of fifty percent (50%) or
more of the combined voting power of the Company’s then outstanding securities if such person (or his, her or its affiliate(s))
does not own in excess of 50% of such voting power on the date of this Agreement, or (ii) the future disposition by the Company (whether
direct or indirect, by sale of assets or stock, merger, consolidation or otherwise) of all or substantially all of its assets in one transaction
or series of related transactions (in each case other than (i) a merger effected exclusively for the purpose of changing the domicile
of the Company, (ii) financing activities in the ordinary course in which the Company sells its equity securities, or (iii) a transfer
to a person or entity that, immediately after the transfer, is or is controlled by a person or entity that controlled the Company before
the transfer, within the meaning of Section 1.409A-3(i)(5)(vii)(B) of the Treasury regulations promulgated under Section 409A (as hereinafter
defined).


 



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(d) Notwithstanding
the foregoing, Employee will only be entitled to the Severance Benefits if (i) Employee has executed and delivered to the Company, within
thirty (30) days after the effective date of termination, a written general release, in a reasonable and customary form (the “Release”),
pursuant to which Employee releases the Company, to the maximum extent permitted by law, from any and all claims she may have against
the Company that relate to or arise out of Employee’s employment or termination of employment, except for claims arising under the
Release, and (ii) does not rescind or revoke such Release within any applicable rescission or revocation period. Employee shall forfeit
all rights to the Severance Benefits unless such Release is timely signed and delivered within the thirty (30) period set forth above,
or if Employee rescinds or revokes the Release (or any portion thereof) within any applicable rescission or revocation period.


 


(e) The
Severance Benefits shall begin to be paid to Employee on the first payroll date after the expiration of the rescission period applicable
to the Release (the expiration of such period being referred to as the “Severance Effectiveness Date”); provided,
however, that if the period between the effective date of Employee’s termination and the latest possible Severance Effectiveness
Date (which assumes that Employee executes and delivers the Release to the Company on the 30th day after the effective date of such termination)
spans parts of two calendar years, the Severance Benefits shall not commence in the earlier of those years. Any Severance Benefits that
would otherwise have been payable in respect of periods prior to the first payroll date after the Severance Effectiveness Date will be
delayed until the Company’s first regular payroll date after the Severance Effectiveness Date and included with the installment
payable on such payroll date.


 


(f) For
purposes of this Agreement, the following events will constitute “Cause”:


 


(i) Employee’s
conviction or plea relative to a crime that constitutes a felony (whether or not such conviction is pending appeal);


 


(ii) Employee’s
fraudulent conduct or misappropriation by Employee against the Company (including without limitation theft or embezzlement of Company
property) or other dishonest act of a reasonably serious nature with respect to the Company or its affairs;


 


(iii) Employee’s
habitual intoxication, drug use or chemical substance abuse by any intoxicating or chemical substance, which intoxication, use or abuse
adversely affects her ability to perform her duties of employment;


 



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(iv) Any
act or omission by Employee which is injurious in any material respect to the financial condition or business reputation of the Company
and which resulted from Employee’s inexcusable misconduct or inexcusable neglect, provided that Employee has been given ten (10)
days’ prior written notice identifying such alleged act or omission and the resulting injury, and, if such injury is capable of
being cured, Employee fails to cure such failure within ten (10) days after receipt of such written notice;


 


(v) Employee’s
breach of any confidentiality, non-solicitation and/or non-competition agreement with the Company to which Employee is a party;


 


(vi) Employee’s
violation of a written Company policy that adversely effects the Company in any material respect, provided that Employee has been given
ten (10) days’ prior written notice identifying such violation and the resulting adverse effect, and, if such adverse effect is
capable of being cured, Employee fails to cure such adverse effect within ten (10) days after receipt of such written notice; or


 


(vii) Employee’s
continued, repeated or willful failure to perform her reasonable employment duties or comply with reasonable written directives from Company
management, provided that Employee has been given ten (10) days’ prior written notice specifying the event(s) giving rise to such
failure, and, if such failure is capable of being cured, Employee fails to cure such failure within ten (10) days after receipt of such
written notice.


 


(g) For
purposes of this Agreement, “Good Reason” means:


 


(i) a
breach of this Agreement by the Company which breach, where curable, has not been cured within thirty (30) days after written notice to
the Company setting forth the particulars of such alleged breach;


 


(ii) a
reduction in Employee’s Salary below the applicable amount set forth in Section 3(a) in violation of such Section; or


 


(iii) assignment
to Employee of duties inconsistent with Employee’s position, or a diminution in Employee’s authority, responsibility, status,
title, or offices; provided, however, that no act shall constitute Good Reason unless Employee has provided notice of such
Good Reason to the Company pursuant to Section 5(b)(ii) below within sixty (60) days following the initial existence of the condition
that constitutes Good Reason.


 


(h) For
purposes of this Agreement, “disability” means a determination by the Board that Employee is unable to perform the
essential functions of her employment under this Agreement due to illness, injury, or other condition of a physical or psychological nature,
with or without a reasonable accommodation for a period aggregating to 90 days in any 12-month period. Such determination shall be made
in good faith by the Board, the decision of which shall be conclusive and binding. For clarity, the essential function of Employee’s
employment specifically include, but are not limited to, Employee’s consistent performance of her obligations under Section 1 of
this Agreement.


 



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(i) Section
280G. If any payment or benefit that Employee may receive following a change of control of the Company, Employee’s termination
of employment, or otherwise, whether or not payable or provided under this Agreement (“Payment”) would (i) constitute
a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended, and the regulations
and guidance thereunder (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section
4999 of the Code (the “Excise Tax”), then such Payment shall be reduced to the Reduced Amount. The “Reduced
Amount” shall be either (A) the largest portion of the Payment that would result in no portion of the Payment being subject
to the Excise Tax or (B) the largest portion, up to and including the total amount, of the Payment, whichever of the amounts determined
under (A) and (B), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax
(all computed at the highest applicable marginal rate), results in Employee’s receipt, on an after-tax basis, of the greater amount
of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or
benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur
in the following order: reduction of cash payments; cancellation of accelerated vesting of outstanding equity awards; and reduction of
employee benefits. In the event that acceleration of vesting of outstanding equity awards is to be reduced, such acceleration of vesting
shall be undertaken in the reverse order of the date of grant of Employee’s outstanding equity awards. All calculations and determinations
made pursuant this Section 5(i) will be made by an independent accounting or consulting firm or independent tax counsel appointed by the
Company (the “Tax Counsel”) whose determinations shall be conclusive and binding on the Company and Employee for all
purposes. For purposes of making the calculations and determinations required by the Section 5(i), the Tax Counsel may rely on reasonable,
good faith assumptions and approximations concerning the application of Section 280G of the Code and Section 4999 of the Code.


 


6. Confidential
Information.


 


(a) During
the course of Employee’s employment with the Company, Employee has learned and will continue to learn of Confidential Information
(as defined below), and has developed and will continue to develop Confidential Information on behalf of the Company and its Affiliates.
Employee agrees that she will not use or disclose to any third party (except as required by applicable law or for the proper performance
of Employee’s regular duties and responsibilities for the Company) any Confidential Information obtained by Employee incident to
her employment or any other association with the Company or any of its affiliates. Employee agrees that this restriction will continue
to apply after Employee’s employment terminates, regardless of the reason for such termination. For the avoidance of doubt, (i)
nothing contained in this Agreement limits, restricts or in any other way affects Employee’s communicating with any governmental
agency or entity, or communicating with any official or staff person of a governmental agency or entity, concerning matters relevant to
such governmental agency or entity and (ii) Employee will not be held criminally or civilly liable under any federal or state trade secret
law for disclosing a trade secret (y) in confidence to a federal, state, or local government official, either directly or indirectly,
or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (z) in a complaint or other document
filed under seal in a lawsuit or other proceeding; provided, however, that notwithstanding this immunity from liability,
Employee may be held liable if she unlawfully accesses trade secrets by unauthorized means.


 


(b) All
documents, records and files, in any media of whatever kind and description, relating to the business, present or otherwise, of the Company
or its affiliates, and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by Employee,
shall be the sole and exclusive property of the Company. Employee agrees to safeguard all Documents and to surrender to the Company, at
the time Employee’s employment terminates or at such earlier time or times as the Board or its designee may specify, all Documents
then in Employee’s possession or control. Employee also agrees to disclose to the Company, at the time Employee’s employment
terminates or at such earlier time or times as the Board or its designee may specify, all passwords necessary or desirable to obtain access
to, or that would assist in obtaining access to, any information which Employee has password-protected on any computer equipment, network
or system of the Company or its affiliates.


 



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(c) For
purposes of this Agreement, “Confidential Information” means any and all information of the Company and its affiliates
that is not generally available to the public. Confidential Information also includes any information received by the Company or its affiliates
from any third party with any understanding, express or implied, that it will not be disclosed. Confidential Information does not include
information: (i) that enters the public domain, other than through the Employee’s breach of her obligations under this Agreement
or any other agreement between Employee and the Company or its affiliates; (ii) of which Employee was in possession on a non-confidential
basis prior to disclosure during employment; (iii) that is rightfully received on a non-confidential basis from a third party that is
not prohibited from disclosing such information by a legal, contractual or fiduciary obligation to the Company; (iv) that has been approved
for release by authorization of the Company; or (v) that Employee can demonstrate is independently developed by the Employee without reference
to Confidential Information.


 


7. Restricted
Activities.


 


(a) While
employed by the Company and for a period of one (1) year from and after the date on which Employee’s employment with the Company
is terminated for any reason (the “Restricted Period”), unless Employee receives the Company’s prior written
approval, Employee will not, directly or indirectly, whether for her own benefit or that of any other individual, partnership, firm, corporation,
or other business organization, engage in any of the following actions (the “Restricted Activities”):


 


(i) induce,
solicit, or attempt to induce or solicit any customer, supplier or other business relation of the Company to (i) cease doing business
with the Company, or (ii) do business with any competitor of the Company;


 


(ii) interfere
with the relationship of the Company with any person who is employed by or otherwise engaged to perform services for the Company (including,
but not limited to, any consultant or independent sales representatives or organizations), whether for Employee’s own account or
for the account of any other individual(s) or entity; or


 


(iii) engage,
own, have an interest, or participate in the financing, operation, management or control of any individual, partnership, firm, corporation,
or other business organization whose primary business is the development, production, marketing and/or sale (whether through wholesale,
direct-to-consumer or other channels) of wine varietals and brands that are primarily marketed to consumers as embodying a connection
to health, wellness and/or an active lifestyle, including without limitation varietals that are marketed as low-calorie, low-carb, and/or
low-sugar and that may meet the requirements of gluten-free, vegan and other diets, other than as a passive stockholder with less than
three percent (3%) of the outstanding common stock of a publicly traded company.


 


The foregoing covenant shall
cover Employee’s activities in the United States and in any other country or U.S. territory in which the Company does business during
the Employment Term.


 


If Employee violates any of
the restrictive covenants in this Section 7, the Restricted Period shall be extended for an additional period equal to the duration of
the period of such violation.


 


(b) Employee
agrees not to make negative comments or otherwise disparage the Company or its affiliates or its or their officers, directors, employees,
shareholders, agents or products. The foregoing shall not be violated by truthful statements in response to legal process, required governmental
testimony or filings, or administrative or arbitral proceedings (including depositions in connection with such proceedings).


 



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8. Intellectual
Property.


 


(a) Employee
shall promptly and fully disclose all Intellectual Property to the Company. Employee hereby assigns and agrees to assign to the Company
(or as otherwise directed by the Company) her full right, title and interest in and to all Intellectual Property. Employee agrees to execute
any and all applications for domestic and foreign patents, copyrights or other proprietary rights and to do such other acts (including
without limitation the execution and delivery of instruments of further assurance or confirmation) requested by the Company to assign
the Intellectual Property to the Company (or as otherwise directed by the Company) and to permit the Company to enforce any patents, copyrights
or other proprietary rights to the Intellectual Property. Employee will not charge the Company or any of its affiliates for time spent
in complying with these obligations. All copyrightable works that Employee creates during her employment shall be considered “work
made for hire” and shall, upon creation, be owned exclusively by the Company.


 


(b) For
purposes of this Agreement, “Intellectual Property” means inventions, discoveries, developments, methods, processes,
compositions, works, concepts and ideas (whether or not patentable or copyrightable or constituting trade secrets) conceived, made, created,
developed or reduced to practice by Employee (whether alone or with others, whether or not during normal business hours or on or off the
premises of the Company or any of its affiliates) during the Employee’s employment that relate either to the business of the Company
or its affiliates or to any prospective activity of the Company or its affiliates or that result from any work performed by Employee for
the Company or its affiliates or that make use of Confidential Information or any of the equipment or facilities of the Company or its
affiliates.


 


(c) Notwithstanding
the foregoing, and pursuant to Minn. Stat. Section 181.78, the Company hereby notifies Employee that Intellectual Property does not include
an invention for which no equipment, supplies, facility or trade secret information of the Company was used and which was developed entirely
on Employee’s own time, and (a) which does not relate (i) directly to the business of the Company or (ii) to the Company’s
actual or demonstrably anticipated research or development, or (b) which does not result from any work performed by Employee for the Company.


 


9. Recoupment.
Employee agrees to reimburse the Company for all or a portion, as determined below, of any bonus or incentive or equity-based compensation
paid, awarded or vested to Employee by the Company (an “Award”), if the Board determines that (a) the payment, award
or vesting was predicated upon the achievement of certain financial results that were subsequently the subject of a material financial
restatement, and (b) Employee engaged in fraud or misconduct that caused, in whole or in part, the need for the material financial restatement,
and (c) a lower payment, award or vesting would have occurred based upon the restated financial results. In such event, Employee agrees
to reimburse (in the manner determined by the Board, including cancellation of options or other stock awards) any Award previously paid,
awarded or vested in the amount by which such Award exceeds the lower Award that would have occurred based upon the restated financial
result; provided that no reimbursement shall be required if the payment, award or vesting otherwise subject to reimbursement hereunder
occurred more than three (3) years prior to the date the applicable reinstatement is disclosed. In addition, any Award or other compensation,
payable to Employee pursuant to this Agreement or any other agreement, plan or arrangement of the Company shall be subject to repayment
or recoupment (clawback) by the Company to the extent applicable under Section 304 of the Sarbanes-Oxley Act of 2002 (and not otherwise
exempted) and in accordance with such policies and procedures as the Board or a committee thereof) may adopt from time to time, including
to implement applicable law (including Section 954 of the Dodd-Frank Act of 2010), stock market or exchange rules and regulations or accounting
or tax rules and regulations.


 



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10. Miscellaneous.


 


(a) Amendment.
This Agreement may be amended only in a writing signed by both Parties.


 


(b) Entire
Agreement. With the exception of any confidentiality, non-solicitation, non-competition and/or proprietary rights agreement with the
Company to which Employee is or may become a party, this Agreement sets forth the parties’ final and entire agreement with respect
to their respective subject matters and supersede any and all prior understandings and agreements.


 


(c) Binding
Agreement. This Agreement shall be binding upon Employee and the Company and their respective successors, assigns, heirs, executors
and beneficiaries; provided, however, that Employee acknowledges that her services are unique and personal and, accordingly,
understands and agrees that she shall not be entitled to assign her rights or delegate her duties under this Agreement.


 


(d) Rules
of Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect its construction
or interpretation. All references to “Section” or “Sections” refer to the corresponding Section or Sections of
this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances require. Unless
otherwise expressly provided, the word “including” does not limit the preceding words or terms.


 


(e) Notices.
Any notice provided for in this Agreement must be in writing and must be either personally delivered or sent by reputable overnight courier
service (charges prepaid), or sent by registered or certified U.S. Mail (postage prepaid), or delivered by email, to the recipient at
the address below indicated:


 


	If to the Company, to:	Fresh Grapes, LLC
	 	505 Hwy 169, Ste. 255
	 	Plymouth, MN 55441
	 	Email: janelle@freshvinewine.com
	 	Attention: Janelle Anderson
	 	 
	If to Employee, to:	Employee’s address as shown in the records of the Company;



 


or such other address or to the attention of such
other person as the recipient Party will have specified by prior written notice to the sending Party. Any notice under this Agreement
will be deemed to have been given upon the earlier of (a) actual receipt, or (b)(i) one business day after the business day of deposit
with a nationally recognized overnight courier service for next day delivery, freight prepaid, or (ii) three business days after deposit
with the United States Post Office for delivery by registered or certified mail, postage prepaid.


 


(f) Waiver
of Breach. Any waiver by either Party of compliance with any provision of this Agreement by the other Party shall not operate or be
construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such Party of a provision of this Agreement.


 



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(g) Section
409A. The intent of the Parties is that payments and benefits under this Agreement comply with or be exempt from Section 409A of the
Code (“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be
in compliance therewith or exempt therefrom. For purposes of Section 409A, the phrase “termination of employment” (or other
words to that effect), as used in this Agreement, shall be interpreted to mean “separation from service” as defined under
Section 409A. To the maximum extent permitted under Section 409A, the cash severance and other benefits payable under this Agreement are
intended to meet the requirements of the short-term deferral exemption under Section 409A and the “separation pay exception”
under Treas. Reg. §1.409A-1(b)(9)(iii). For purposes of the application of Treas. Reg. § 1.409A-l(b)(4)(or any successor provision),
each payment in a series of payments to Employee will be deemed a separate payment. To the extent any cash payment or continuing benefit
payable upon Employee’s termination of employment is nonqualified deferred compensation subject to Section 409A, then, only to the
extent required by Section 409A, such payment or continuing benefit shall not commence until the date which is six (6) months after the
date of separation from service, and any previously scheduled payments shall be made in a lump sum (without interest) on that date. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A
and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred
by Employee on account of non-compliance with Section 409A.


 


(h) Further
Assurances. Each Party shall, without further consideration, execute such additional documents as may be reasonably required in order
to carry out the purpose and intent of this Agreement.


 


(i) Severability.
If any one or more of the provisions (or portions thereof) of this Agreement shall for any reason be held by a final determination of
a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions (or portions of the provisions) of this Agreement, and the invalid, illegal or unenforceable provisions
shall be deemed replaced by a provision that is valid, legal and enforceable and that comes closest to expressing the intention of the
parties hereto.


 


(j) Choice
of Law and Venue. The Company and Employee entered into this Agreement in the State of Minnesota. This Agreement shall be construed,
enforced, and interpreted in accordance with and governed by the laws of the State of Minnesota, exclusive of its conflict of law provisions.
With respect to any controversy or claim arising out of this Agreement, the Company and Employee consent to the exclusive venue and jurisdiction
in the District Court of Hennepin County, State of Minnesota and to service of process under Minnesota law in any action arising from
the construction, interpretation, or enforcement of this Agreement.


 


(k) Survival
of Provisions. Notwithstanding any other provision of this Agreement, the Parties’ respective rights and obligations under Sections
6, 7, 8 and 9 hereof, and any confidentiality, non-solicitation, non-competition and/or proprietary rights agreements with the Company
to which Employee is or may become a party, will survive any termination or expiration of this Agreement or the termination of Employee’s
employment for any reason whatsoever.


 


(l) Remedies.
Employee acknowledges that a violation of Section 6, 7 and/or 8 of this Agreement may cause irreparable harm to the Company, and that
a remedy at law for any such violation would be inadequate. Thus, in addition to any other relief afforded by law, including damages sustained
by a breach of this Agreement, and without any necessity of proof of actual damage, the Company will have the right to enforce Sections
6, 7 and 8 of this Agreement by specific enforcement, which will include, among other things, temporary and permanent injunctions to stop
or prevent the breach, threatened breach, or anticipated breach of this Agreement, it being the understanding of the parties that both
damages and injunctions will be proper modes of relief and are not to be considered as alternative remedies. All current and future subsidiaries
and other affiliates of the Company are intended third party beneficiaries of the Company’s rights under this Agreement. The Company
will also be entitled to recover from Employee its attorney’s fees and costs in any action for breach, anticipated breach, or threatened
breach of this Agreement in which the Company substantially prevails.


 


(m) Employment
Not Guaranteed. Neither this Agreement nor any action taken hereunder shall be deemed to give Employee the right to be retained as
an employee of the Company except as otherwise expressly provided in this Agreement.


 


(n) Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute
but one and the same agreement.


 


Signature page follows.


 




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In
Witness Whereof, the parties have executed the Employment Agreement effective as of the Effective Date written above.


 


	 	THE COMPANY:
	 	 	 
	 	FRESH VINE WINE, INC.
	 	 	 
	 	By:	/s/ Janelle Anderson
	 	Name:	Janelle Anderson
	 	Title:	Chief Executive Officer
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	/s/ Ellen Scipta
	 	Ellen Scipta



 


 


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