SIERRA
MONITOR CORPORATION


 


CHANGE
OF CONTROL AND SEVERANCE AGREEMENT


 


This Change of Control
Severance Agreement (the “Agreement”) is made and entered into by and between ______________________ (“Employee”)
and Sierra Monitor Corporation, a California corporation (the “Company”), effective as of April 2, 2012 (the “Effective
Date”).


 


RECITALS


 


1.                  
It is expected that the Company from time to time will consider the possibility of an acquisition by another company or
other change of control. The Board of Directors of the Company (the “Board”) recognizes that such consideration can
be a distraction to Employee and can cause Employee to consider alternative employment opportunities. The Board has determined
that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication
and objectivity of Employee, notwithstanding the possibility, threat or occurrence of a Change of Control of the Company.


 


2.                  
The Board believes that it is in the best interests of the Company and its shareholders to provide Employee with an incentive
to continue his or her employment and to motivate Employee to maximize the value of the Company upon a Change of Control for the
benefit of its shareholders.


 


3.                  
The Board believes that it is imperative to provide Employee with certain severance benefits upon Employee’s termination
of employment following a Change of Control. The Board further believes that it is imperative to provide Employee with certain
severance benefits if the Company were to terminate Employee’s employment without cause during the term of this Agreement.
These benefits will provide Employee with enhanced financial security and incentive and encouragement to remain with the Company
notwithstanding the possibility of a Change of Control.


 


4.                  
Certain capitalized terms used in the Agreement are defined in Section 6 below.


 


AGREEMENT


 


NOW, THEREFORE,
in consideration of the mutual covenants contained herein, the parties hereto agree as follows:


 


1.                  
Term of Agreement. This Agreement will continue indefinitely until terminated by written consent of the parties hereto.
Notwithstanding the previous sentence, if Employee becomes entitled to benefits pursuant to Section 3 of this Agreement, the Agreement
will terminate when all of the obligations of the parties hereto with respect to this Agreement have been satisfied.


 


2.                  
At-Will Employment. The Company and Employee acknowledge that Employee’s employment is and will continue to be at-will,
as defined under applicable law. If Employee’s employment terminates for any reason, Employee will not be entitled to any
payments, benefits, damages, awards or compensation other than as provided by this Agreement, or pursuant to the Company’s
policies in place at the time of the termination (to the extent applicable) and the payment of accrued but unpaid wages, as required
by law, and any unreimbursed reimbursable expenses.


 






    	 



    	 



    
  


3.                  
Severance Benefits.


 


(a)                
Termination without Cause or Resignation for Good Reason in Connection with a Change of Control. If the Company terminates
Employee’s employment with the Company without Cause or if Employee resigns from such employment for Good Reason, and such
termination occurs within the period beginning three (3) months before and ending twelve (12) months after a Change of Control,
and Employee signs and does not revoke a release of claims with the Company as required by Section 4 and resigns as a member of
the Board, if applicable, effective no later than thirty (30) days following Employee’s termination, then Employee will receive
the following from the Company:


 


(i)           
Accrued Compensation. The Company will pay Employee all accrued but unpaid vacation, expense reimbursements, wages, any
earned (but yet unpaid) bonus or commission and other benefits due to Employee under any Company-provided plans, policies, and
arrangements.


 


(ii)           
Salary Continuation. Employee is entitled to receive continuation of Employee’s base salary as in effect immediately
prior to Employee’s termination date for a period of six (6) months following Employee’s termination of employment;
provided, however, that any such salary continuation will immediately terminate upon Employee’s commencement of full-time
employment with another employer. All such salary continuation payments shall be made in accordance with the Company’s normal
payroll practices.


 


(iii)           
Commission Payments. Employee is entitled to receive continuation of commission payments for a period of six (6) months
following Employees termination of employment, each of which commission payments will be equal to the average of the commission
payments received by Employee during the six (6) months prior to Employee’s termination date, if any. Such commission payments
shall be made in accordance with the Company’s normal payroll practices.


 


(iv)           
Bonus Payment. Employee is entitled to receive the portion of Employee’s annual target bonus prorated monthly based
on the number of months of service completed for the fiscal year which the Employee’s employment terminates. Such amount
(A) will be paid only if, and to the extent that, the relevant performance targets by the Company and/or Employee are achieved,
and (B) will be paid at the time bonuses for the completed fiscal year are paid to the other employees of the Company, but in
no event later than the fifteenth (15) day of the third month following the fiscal year in which the termination occurs.


 


(v)           
Equity Awards. Employee will be entitled to accelerated vesting as to fifty percent (50%) of the then unvested portion
of all of Employee’s outstanding equity awards. In addition, Employee will have twelve (12)-months following the date of
Employee’s termination to exercise any outstanding stock options or other similar rights to acquire Company common stock
that are granted to Employee on our after the Effective Date; provided, however, that in no event may the outstanding stock options
of other similar rights to acquire Company common stock be exercised beyond their original term(s) or expiration date(s).


 


(vi)           
Continued Health Benefits. If (1) Employee constitutes a qualified beneficiary, as defined in Section 4980(B)(g)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”) and (2) Employee elects continuation health coverage pursuant
to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) for Employee and Employee’s
eligible dependents, within the time period prescribed pursuant to COBRA, the Company will pay the premiums for such health continuation
coverage at the levels in effect immediately prior to Employee’s termination until the earlier of (A) six (6) months from
the last date of Employee’s employment with the Company, (B) the date upon which Employee and/or Employee’s eligible
dependents becomes covered under similar plans, or (C) the date Employee and/or Employee’s eligible dependents is no longer
eligible to receive continuation coverage pursuant to COBRA.


 






    	 



    	 	



    
  


(b)                
Disability; Death. If the Company terminates Employee’s employment as a result of Employee’s Disability, or
Employee’s employment terminates due to his or her death, then Employee will not be entitled to receive severance or other
benefits except for those (if any) as may then be established under the Company’s then existing written severance and benefits
plans and practices or pursuant to other written agreements with the Company.


 


(c)                
Voluntary Resignation; Termination for Cause. If Employee’s employment with the Company terminates (i) voluntarily
by Employee (other than for Good Reason in connection with a Change of Control) or (ii) for Cause by the Company, then Employee
will not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company’s
then existing severance and benefits plans and practices or pursuant to other written agreements with the Company.


 


(d)                
Timing of Severance Payments. Unless otherwise required pursuant to Section 5 of this Agreement, the Company will pay the
cash severance payments to which Employee is entitled under this Agreement in a lump sum as soon as practicable following the date
of termination, provided, however, that such payment will be delayed to the extent required by Section 4 and/or Section 5 of this
Agreement. Except to the extent payment is delayed pursuant to Section 5(b), all cash severance payments under this Agreement will
be paid no later than the fifteenth (15) day of the third month following the fiscal year in which the termination occurs.


 


(e)                
Exclusive Remedy. In the event of a termination of Employee’s employment as set forth in Section 3(a), 3(b) or 3(c)
of this Agreement, the provisions of Section 3(a), 3(b) or 3(c), as applicable, are intended to be and are mutually exclusive of
each other and exclusive and in lieu of any other rights or remedies to which Employee or the Company may otherwise be entitled,
whether at law, tort or contract, in equity, or under this Agreement (other than the payment of accrued but unpaid wages, as required
by law, and any unreimbursed reimbursable expenses). Employee will be entitled to no benefits, compensation or other payments or
rights upon a termination of employment other than those benefits expressly set forth in Section 3 of this Agreement. If Employee
should receive the benefits set forth in Section 8(d) of this Agreement, the benefits provided in Section 3(a)(vi) will be reduced
by the number of months Employee received Company-paid COBRA continuation coverage under Section 8(d).


 


4.                  
Conditions to Receipt of Severance.


 


(a)                
Release of Claims Agreement. The receipt of any severance or other benefits pursuant to Section 3 will be subject to
Employee (or, as applicable, Employee’s designated beneficiary, if living, or otherwise the personal representative of Employee’s
estate) signing and not revoking a Release Agreement, attached hereto as Exhibit A, B and C, as applicable based on the Employee’s
age upon termination and whether such termination qualifies as a group termination under the Age Discrimination in Employment Act
of 1967, and such release becoming effective and irrevocable within sixty (60) days of Employee’s termination or such earlier
date as required by the release (such deadline, the “Release Deadline”). If the release of claims does not become effective
and irrevocable by the Release Deadline, Employee will forfeit any rights to severance or benefits under this Agreement. In no
event will severance payments or benefits be paid or provided until the release of claims becomes effective and irrevocable. Notwithstanding
anything in this Agreement to the contrary, in the event severance payments or benefits provided under this Agreement would be
considered Deferred Compensation Separation Benefits (as defined below), then the following timing of payments will apply to such
Deferred Compensation Separation Benefits, in each case subject to any delay in payment required by Section 409A (and provided
the release becomes effective and irrevocable): (i) if the Release Deadline is on or before December 10 of the calendar year of
Employee’s “separation from service” (within the meaning of Section 409A of the Code, and the final regulations
and official guidance promulgated thereunder (together, “Section 409A”)), any portion of Employee’s severance
payments or benefits provided under this Agreement that would be considered Deferred Compensation Separation Benefits will be paid
on or before December 31 of that calendar year, or such later time as required by (A) the payment schedule applicable to each payment
or benefit, or (B) if applicable, Section 409A (as set forth in Section 5 below); and (ii) if the Release Deadline is after
December 10 of the calendar year of Employee’s “separation from service” (within the meaning of Section 409A),
any portion of the severance payments or benefits provided under this Agreement that would be considered Deferred Compensation
Separation Benefits will be paid on the first payroll date to occur during the calendar year following the calendar year in which
such separation of service occurs or such later time as required by (A) the payment schedule applicable to each payment or
benefit, (B) the Release Deadline, or (C) if applicable, Section 409A (as set forth in Section 5 below).


 






    	 



    	 	



    
  


(b)    
 Resignation as Director. Unless otherwise requested by the Board, Employee agrees and undertakes to resign his or her position
as a member of the Board, if any, effective upon termination of employment with the Company.


 


(c)    
Other Requirement. Employee’s receipt of any payments or benefits under Section 3 will be subject to Employee continuing
to comply with the terms of any confidential information agreement executed by Employee in favor of the Company and the provisions
of this Agreement.


 


5.                  
Section 409A.


 


(a)                
Notwithstanding anything to the contrary in this Agreement, if Employee is a “specified employee” within the
meaning of Section 409A at the time of Employee’s termination (other than due to death), then the severance payable to Employee,
if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are
considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) that
are payable within the first six (6) months following Employee’s termination of employment, will become payable on the first
payroll date that occurs on or after the date six (6) months and one (1) day following the date of Employee’s termination
of employment. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment
schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Employee dies following his
or her termination but prior to the six (6) month anniversary of his or her termination, then any payments delayed in accordance
with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee’s death
and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each
payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes
of Section 1.409A-2(b)(2) of the Treasury Regulations.


 


(b)                
Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth
in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Compensation Separation Benefits for purposes
of clause (a) above.


 


(c)                
Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service
pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section 409A Limit shall not constitute
Deferred Compensation Separation Benefits for purposes of clause (a) above.


 


(d)                
The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments
and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein
will be interpreted to so comply. The Company and Employee agree to work together in good faith to consider amendments to this
Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional
tax or income recognition prior to actual payment to Employee under Section 409A.


 






    	 



    	 	



    
  


6.                  
Definition of Terms. The following terms referred to in this Agreement will have the following meanings:


 


(a)                
Cause. Termination by the Company of the Employee’s employment for “Cause” will mean:


 


(i)           
Other than failure resulting from Employee’s complete or partial incapacity due to physical or mental illness or
impairment, Employee’s willful and continued failure to substantially perform the duties of Employee’s position;


 


(ii)           
Employee’s willful commission of an act of fraud or dishonesty resulting in, or that is likely to result in, material
economic or financial injury to the Company;


 


(iii)           
Employee’s willful engagement in illegal conduct which was or is reasonably likely to be materially injurious to
the Company;


 


(iv)           
Employee’s willful breach of any fiduciary duty owed by Employee to the Company that the Company reasonably believes
has had or will have a material adverse effect on the Company’s reputation of business;


 


(v)           
Employee being found liable in any Securities and Exchange Commission or other civil or criminal securities law action
or any cease and desist order is entered with respect to any such action (regardless of whether or not the Employee admits or
denies liability in such action); or


 


(vi)           
Employee’s willful obstruction or impediment of (or efforts to influence, obstruct or impede), or failure to materially
cooperate with, any investigation authorized by the Company, its Board of Directors of any governmental or self-regulatory organization.


 


For purposes of
this Section 6(a), no act, or failure to act, on Employee’s part shall be deemed “willful” unless done, or omitted
to be done, by Employee not in good faith. In the event of any alleged breach pursuant to (i) of this Section 6(a), the Company
will first give Employee written notice which specifically identifies the manner in which the Board believes that the Employee’s
conduct constitutes the alleged performance breach to enable Employee to correct the deficiency within a reasonable time period,
which will not be less than thirty (30) days, before the Company can proceed with a termination for Cause under (i) of this Section
6 (a). In the event of any alleged conduct described in (ii) through (vi) of this Section 6(a), the Company will deliver to Employee
written notice which sets forth the Board’s finding that Employee engaged in such conduct and specifying the particulars
thereof. In the event of a Change of Control pursuant to which the Company is not the surviving entity, then on and after such
Change of Control, all determinations and actions required to be taken by the Board under this Section 6(a) shall be made or taken
by the board of directors of the surviving entity, or if the surviving entity is a subsidiary, then by the board of directors of
the ultimate parent corporation of the surviving entity.


 


(b)                
Change of Control. A “Change of Control” will be deemed to occur upon the earliest to occur after the date of
this Agreement of any of the following events:


 






    	 



    	 	



    
  


(i)           
Change in Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a substantial
portion of the Company’s assets which occurs on the date that any one person, or more than one person acting as a group
(“Person”) acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition
by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the
total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For purposes
of this subsection (i), gross fair market value means the value of the assets of the Company, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such assets;


 


(ii)           
Change in Ownership of the Company. A change in the ownership of the Company which occurs on the date that any Person acquires
ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than 50% of the total
voting power of the stock of the Company, except that any change in the ownership of the stock of the Company as a result of a
private financing of the Company that is approved by the Board will not be considered a Change of Control;


 


(iii)           
Change in Effective Control of the Company. A change in the effective control of the Company which occurs on the date that
a majority of members of the Board is replaced during any twenty-four (24) month period by directors whose appointment or election
is not approved by a majority of the members of the Board prior to the date of the appointment or election. For purposes of this
subsection (iii), if any Person is considered to be in effective control of the Company, the acquisition of additional control
of the Company by the same Person will not be considered a Change of Control; or


 


(iv)           
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,


 


For these purposes, persons
will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase
or acquisition of stock, or similar business transaction with the Company.


 


Notwithstanding
the foregoing provisions of this definition, a transaction will not be deemed a Change of Control unless the transaction qualifies
as a change in control event within the meaning of Section 409A.


 


(c)                
Disability. For the purpose of this Agreement, “Disability” shall have the meaning set forth in Section 409A.


 


(d)                
Good Reason. The Employee is entitled to terminate employment for Good Reason. For the purpose of this Agreement, “Good
Reason” will mean Employee’s termination of employment within ninety (90) days following the expiration of any cure
period (discussed below) following the occurrence of one or more of the following, without Employee’s express written consent:


 


(i)           
A material reduction by the Company of Employee’s duties or responsibilities;


                                                                         



    	 



    	 	



    



 


(ii)           
A reduction by the Company of Employee’s base salary in effect immediately prior to such reduction; provided, however,
that such reduction in base salary in connection with similar percentage reductions imposed on all executive-level employees shall
not constitute “Good Reason”; or


 


(iii)           
A material change in the geographic location at which Employee my perform his services; provided that in no instance will
the relocation of Employee to a facility or a location of fifty (50) miles or less from Employee’s then present office location
be deemed material for purposes of this Agreement. Employee will not resign for Good Reason without first providing the Company
with written notice within ninety (90) days of the event that Employee believes constitutes “Good Reason” specifically
identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty
(30) days following the date of such notice.


 


(e)                
Section 409A Limit. “Section 409A Limit” will mean the lesser of two (2) times: (i) Employee’s annualized
compensation based upon the annual rate of pay paid to Employee during Employee’s taxable year preceding Employee’s
taxable year of Employee’s termination of employment as determined under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1)
and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account
under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Employee’s employment is terminated.


 


7.                  
Successors.


 


(a)                
The Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets will assume
the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and
to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes
under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets which
executes and delivers the assumption agreement described in this Section 7(a) or which becomes bound by the terms of this Agreement
by operation of law.


 


(b)                
Employee’s Successors. The terms of this Agreement and all rights of Employee hereunder will inure to the benefit
of, and be enforceable by, Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.


 


8.                  
Arbitration.


 


(a)                
The Company and Employee each agree that any and all disputes arising out of the terms of this Agreement, Employee’s
employment by the Company, Employee’s service as an officer or director of the Company, or Employee’s compensation
and benefits, their interpretation and any of the matters herein released, will be subject to binding arbitration under the arbitration
rules set forth in California Code of Civil Procedure Sections 1280 through 1294.2, including Section 1281.8 (the “Act”),
and pursuant to California law. Disputes that the Company and Employee agree to arbitrate, and thereby agree to waive any right
to a trial by jury, include any statutory claims under local, state, or federal law, including, but not limited to, claims under
Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act
of 1967, the Older Workers Benefit Protection Act, the Sarbanes-Oxley Act, the Worker Adjustment and Retraining Notification Act,
the California Fair Employment and Housing Act, the Family and Medical Leave Act, the California Family Rights Act, the California
Labor Code, claims of harassment, discrimination, and wrongful termination, and any statutory or common law claims. The Company
and Employee further understand that this Agreement to arbitrate also applies to any disputes that the Company may have with Employee.
However, claims for workers’ compensation benefits and unemployment insurance (or any other claims where mandatory arbitration
is prohibited by law) are not covered by this arbitration agreement, and such claims may be presented by the Employee to the appropriate
court or government agency.


 






    	 



    	 	



    
 


 


(b)                
Procedure. The Company and Employee agree that any arbitration will be administered by Judicial Arbitration & Mediation
Services, Inc. (“JAMS”), pursuant to its Employment Arbitration Rules & Procedures (the “JAMS Rules”).
The Arbitrator will have the power to decide any motions brought by any party to the arbitration, including motions for summary
judgment and/or adjudication, motions to dismiss and demurrers, and motions for class certification, prior to any arbitration hearing.
The Arbitrator will have the power to award any remedies available under applicable law, and the Arbitrator will award attorneys’
fees and costs to the prevailing party, except as prohibited by law. The Company will pay for any administrative or hearing fees
charged by the Arbitrator or JAMS except that Employee will pay any filing fees associated with any arbitration that Employee initiates,
but only so much of the filing fees as Employee would have instead paid had he or she filed a complaint in a court of law. The
Arbitrator will administer and conduct any arbitration in accordance with California law, including the California Code of Civil
Procedure, and the Arbitrator will apply substantive and procedural California law to any dispute or claim, without reference to
rules of conflict of law. To the extent that the JAMS Rules conflict with California law, California law will take precedence.
The decision of the Arbitrator will be in writing. Any arbitration under this Agreement will be conducted in Santa Clara County,
California.


 


(c)                
Remedy. Except as provided by the Act and this Agreement, arbitration will be the sole, exclusive, and final remedy for
any dispute between Employee and the Company. Accordingly, except as provided for by the Act and this Agreement, neither Employee
nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration.


 


(d)                
Healthcare Coverage in Event of Dispute. In the event that any dispute between Employee and the Company becomes subject
to arbitration pursuant to this Section 8, and provided that (1) Employee constitutes a qualified beneficiary, as defined in Section
4980(B)(g)(1) of the Code; and (2) Employee elects continuation coverage pursuant to COBRA, within the time period prescribed
pursuant to COBRA, the Company will pay the premiums for such health continuation coverage at the levels in effect immediately
prior to Employee’s termination until the earlier of (A) the resolution of the arbitration dispute or (B) the date upon which
the Company would no longer be required to provide such continuation coverage pursuant to Section 3.


 


(e)                
Administrative Relief. Employee understands that this Agreement does not prohibit him or her from pursuing any administrative
claim with a local, state, or federal administrative body or government agency that is authorized to enforce or administer laws
related to employment, including, but not limited to, the Department of Fair Employment and Housing, the Equal Employment Opportunity
Commission, the National Labor Relations Board, or the Workers’ Compensation Board. This Agreement does, however, preclude
Employee from pursuing court action regarding any such claim, except as permitted by law.


 


(f)                 
Voluntary Nature of Agreement. Each of the Company and Employee acknowledges and agrees that such party is executing this
Agreement voluntarily and without any duress or undue influence by anyone. Employee further acknowledges and agrees that he or
she has carefully read this Agreement and has asked any questions needed for him or her to understand the terms, consequences,
and binding effect of this Agreement and fully understands it, including that Employee is waiving his or her right to a jury trial.
Finally, Employee agrees that he or she has been provided an opportunity to seek the advice of an attorney of his or her choice
before signing this Agreement.


 






    	 



    	 	



    
  


9.                  
Notice.


 


(a)                
General. Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage
prepaid. In the case of Employee, mailed notices will be addressed to him or her at the home address which he or she most recently
communicated to the Company in writing. In the case of the Company, mailed notices will be addressed to its corporate headquarters,
and all notices will be directed to the attention of its President.


 


(b)                
Notice of Termination. Any termination by the Company for Cause or by Employee for Good Reason will be communicated by a
notice of termination to the other party hereto given in accordance with Section 9(a) of this Agreement. Such notice will indicate
the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination under the provision so indicated, and will specify the termination date (which will
be not more than thirty (30) days after the giving of such notice). The failure by the Company or by Employee, as applicable, to
include in the notice any fact or circumstance which contributes to a showing of Cause or Good Reason, as applicable, will not
waive any right of the Company or Employee, as applicable, hereunder or preclude the Company or Employee, as applicable, from asserting
such fact or circumstance in enforcing its, his or her rights hereunder.


 


10.               
Non-Solicitation. Employee agrees that for a period of twelve (12) months immediately following termination, Employee shall
not directly or indirectly solicit any of the Company’s employees to leave their employment at the Company.


 


11.               
Non-Disparagement. Employee agrees to refrain from any defamation, libel or slander of the Company and its respective officers,
directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations,
and assigns or tortuous interference with the contracts and relationships of the Company and its respective officers, directors,
employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations,
and assigns. Employee acknowledges and agrees that any breach of this Section 11 shall constitute a material breach of this Agreement
and shall entitle the Company immediately to recover all consideration paid under this Agreement, including, but not limited to
the consideration described in Section 3.


 


12.               
Miscellaneous Provisions.


 


(a)                
No Duty to Mitigate. Employee will not be required to mitigate the amount of any payment contemplated by this Agreement,
nor will any such payment be reduced by any earnings that Employee may receive from any other source.


 


(b)                
Waiver. No provision of this Agreement will be modified, waived or discharged unless the modification, waiver or discharge
is agreed to in writing and signed by Employee and by an authorized officer of the Company (other than Employee). No waiver by
either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party will be considered
a waiver of any other condition or provision or of the same condition or provision at another time.


 


(c)                
Headings. All captions and section headings used in this Agreement are for convenient reference only and do not form a part
of this Agreement.


 


(d)                
Entire Agreement. This Agreement, including its exhibits, constitutes the entire agreement of the parties hereto and supersedes
in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed
or implied) of the parties with respect to the subject matter hereof. No waiver, alteration, or modification of any of the provisions
of this Agreement will be binding unless in writing and signed by duly authorized representatives of the parties hereto and which
specifically mention this Agreement.


 






    	 



    	 	



    
  


(e)                
Choice of Law. The validity, interpretation, construction and performance of this Agreement will be governed by the laws
of the State of California without regard to principles of its conflict of laws.


 


(f)                 
Severability. The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity
or enforceability of any other provision hereof, which will remain in full force and effect.


 


(g)                
Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable income, employment
and other taxes.


 


(h)                
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.


 


[Signature Page to Follow]


 






    	 



    	 	



    
  


IN WITNESS WHEREOF, each of the parties
has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year set forth below.


 





	COMPANY	 	SIERRA MONITOR CORPORATION
	 	 	 
	 	 	By:
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Title:
	 	 	 
	 	 	Date:
	 	 	 
	 	 	 
	 	 	 
	EMPLOYEE	 	By:
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Title:
	 	 	 
	 	 	Date:







 






    	 



    	 	



    



Exhibit A


 


RELEASE AGREEMENT


 


For Employee 40 Years
Old or Older in Group Termination


 


I understand and agree
completely to the terms set forth in my Change in Control Severance Benefits Agreement (the “Agreement”) with Sierra
Monitor Corporation (the “Company”).


 


I understand that this
Release Agreement (“Release”), together with the Agreement, constitutes the complete, final and exclusive embodiment
of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or
representation by the Company that is not expressly stated herein.


 


I hereby confirm my
obligations under any of the Company’s Employment, Confidential Information, Invention Assignment, and Arbitration Agreements
to which that I have previously agreed.


 


In consideration of
the severance benefits I will receive under the Agreement, I hereby generally and completely release the Company and its current
and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release. This
general release includes, but is not limited to: (a) all claims arising out of or in any way related to my employment with
the Company, or the termination of that employment; (b) all claims related to my compensation or benefits from the Company,
including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits,
stock, stock options, or any other ownership interests in the Company; (c) all claims for breach of contract, wrongful termination,
and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including, but not limited to, claims
for fraud, defamation, emotional distress, and discharge in violation of public policy; (e) all federal, state, and local statutory
claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal
Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the California Fair Employment and Housing
Act (as amended); (f) any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other
tax treatment of any of the proceeds I receive as a result of the Agreement; and (g) any and all claims for attorneys’ fees
and costs; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from its obligation
to indemnify me pursuant to a written agreement between me and the Company or applicable law.


 


I agree that this Release
shall be and remain in effect in all respects as a complete general release as to the matters released. This Release does not extend
to any obligations incurred under the Agreement. This Release does not release claims that cannot be released as a matter of law,
including, but not limited to, my right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission,
or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws
related to employment, against the Company (with the understanding that any such filing or participation does not give me the right
to recover any monetary damages against the Company; my release of claims herein bars me from recovering such monetary relief from
the Company).


 






    	 



    	 	



    
  


I acknowledge that
I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA (“ADEA Waiver”). I also acknowledge
that the consideration given for the ADEA Waiver is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my ADEA Waiver does not apply to any rights
or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release (although
I may choose voluntarily not to do so); (c) I have forty-five (45) days to consider this Release (although I may choose voluntarily
to sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the ADEA Waiver by providing written
notice to the Company’s Board of Directors; and (e) the ADEA Waiver will not be effective until the date upon which the revocation
period has expired unexercised, which will be the eighth day after I sign this Release (“Effective Date”).


 


I have received with
this Release all of the information required by the ADEA, including without limitation a detailed list of the job titles and ages
of all employees who were terminated in this group termination and the ages of all employees of the Company in the same job classification
or organizational unit who were not terminated, along with information on the eligibility factors used to select employees for
the group termination and any time limits applicable to this group termination program.


 


I acknowledge that
I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his settlement with the debtor.” I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release
of any claims hereunder, including but not limited to my release of unknown claims.


 


I hereby represent
that I have been paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances,
relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting,
and any and all other benefits and compensation due to me, and I have not suffered any on-the-job injury for which I have not already
filed a claim.


 


I acknowledge that
to become effective, I must sign and return this Release to the Company so that it is received not later than forty-five (45) days
following the date it is provided to me.


 





	 	Signature:	 
	 	Printed Name:	 
	 	Date:	 







 






    	 



    	 	



    
 


 


Exhibit B


 


RELEASE AGREEMENT


 


For Employee 40 Years
Old or Older in Individual Termination


 


I understand and agree
completely to the terms set forth in my Change in Control Severance Benefits Agreement (the “Agreement”) with Sierra
Monitor (the “Company”).


 


I understand that this
Release Agreement (“Release”), together with the Agreement, constitutes the complete, final and exclusive embodiment
of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or
representation by the Company that is not expressly stated herein.


 


I hereby confirm my
obligations under any of the Company’s Employment, Confidential Information, Invention Assignment, and Arbitration Agreements
to which that I have previously agreed.


 


In consideration of
the severance benefits I will receive under the Agreement, I hereby generally and completely release the Company and its current
and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release. This
general release includes, but is not limited to: (a) all claims arising out of or in any way related to my employment with
the Company, or the termination of that employment; (b) all claims related to my compensation or benefits from the Company,
including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits,
stock, stock options, or any other ownership interests in the Company; (c) all claims for breach of contract, wrongful termination,
and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including, but not limited to, claims
for fraud, defamation, emotional distress, and discharge in violation of public policy; (e) all federal, state, and local statutory
claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal
Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the California Fair Employment and Housing
Act (as amended); (f) any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other
tax treatment of any of the proceeds I receive as a result of the Agreement; and (g) any and all claims for attorneys’ fees
and costs; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from its obligation
to indemnify me pursuant to a written agreement between me and the Company or applicable law.


 


I acknowledge that
I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA (“ADEA Waiver”). I also acknowledge
that the consideration given for the ADEA Waiver is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my ADEA Waiver does not apply to any rights
or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release (although
I may choose voluntarily not to do so); (c) I have twenty-one (21) days to consider this Release (although I may choose voluntarily
to sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the ADEA Waiver by providing written
notice to the Company’s Board of Directors; and (e) the ADEA Waiver will not be effective until the date upon which the revocation
period has expired unexercised, which will be the eighth day after I sign this Release (“Effective Date”).


 






    	 



    	 	



    
  


I agree that this Release
shall be and remain in effect in all respects as a complete general release as to the matters released. This Release does not extend
to any obligations incurred under the Agreement. This Release does not release claims that cannot be released as a matter of law,
including, but not limited to, my right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission,
or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws
related to employment, against the Company (with the understanding that any such filing or participation does not give me the right
to recover any monetary damages against the Company; my release of claims herein bars me from recovering such monetary relief from
the Company).


 


I acknowledge that
I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his settlement with the debtor.” I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release
of any claims hereunder, including but not limited to my release of unknown claims.


 


I hereby represent
that I have been paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances,
relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting,
and any and all other benefits and compensation due to me, and I have not suffered any on-the-job injury for which I have not already
filed a claim.


 


I acknowledge that
to become effective, I must sign and return this Release to the Company so that it is received not later than twenty-one (21) days
following the date it is provided to me.


 





	 	Signature:	 
	 	Printed Name:	 
	 	Date:	 


 






    	 



    	 	



    
 


 


Exhibit C


 


RELEASE AGREEMENT


 


For Employee Under 40
Years Old in Individual or Group Termination


 


I understand and agree
completely to the terms set forth in my Change in Control Severance Benefits Agreement (the “Agreement”) with Sierra
Monitor Corporation (the “Company”).


 


I understand that this
Release Agreement (“Release”), together with the Agreement, constitutes the complete, final and exclusive embodiment
of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or
representation by the Company that is not expressly stated herein.


 


I hereby confirm my
obligations under any of the Company’s Employment, Confidential Information, Invention Assignment, and Arbitration Agreements
to which that I have previously agreed.


 


In consideration of
the severance benefits I will receive under the Agreement, I hereby generally and completely release the Company and its current
and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release. This
general release includes, but is not limited to: (a) all claims arising out of or in any way related to my employment with
the Company, or the termination of that employment; (b) all claims related to my compensation or benefits from the Company,
including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits,
stock, stock options, or any other ownership interests in the Company; (c) all claims for breach of contract, wrongful termination,
and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including, but not limited to, claims
for fraud, defamation, emotional distress, and discharge in violation of public policy; (e) all federal, state, and local statutory
claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, and the California
Fair Employment and Housing Act (as amended); (f) any claim for any loss, cost, damage, or expense arising out of any dispute over
the non-withholding or other tax treatment of any of the proceeds I receive as a result of the Agreement; and (g) any and all claims
for attorneys’ fees and costs; provided, however, that nothing in this paragraph shall be construed in any way to release
the Company from its obligation to indemnify me pursuant to a written agreement between me and the Company or applicable law.


 


I agree that this Release
shall be and remain in effect in all respects as a complete general release as to the matters released. This Release does not extend
to any obligations incurred under the Agreement. This Release does not release claims that cannot be released as a matter of law,
including, but not limited to, my right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission,
or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws
related to employment, against the Company (with the understanding that any such filing or participation does not give me the right
to recover any monetary damages against the Company; my release of claims herein bars me from recovering such monetary relief from
the Company).


 






    	 



    	 	



    
  


I acknowledge that
I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his settlement with the debtor.” I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release
of any claims hereunder, including but not limited to my release of unknown claims.


 


I hereby represent
that I have been paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances,
relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting,
and any and all other benefits and compensation due to me, and I have not suffered any on-the-job injury for which I have not already
filed a claim.


 


I acknowledge that
to become effective, I must sign and return this Release to the Company so that it is received not later than fourteen (14) days
following the date it is provided to me.


 





	 	Signature:	 
	 	Printed Name:	 
	 	Date: