EMPLOYMENT
AGREEMENT


 


This
Employment Agreement (this “Agreement”) is made and entered into effective as of May 29, 2018 (the “Effective
Date”) by and between Surna Inc., a Nevada corporation whose address is 1780 55th Street, Boulder, Colorado 80301
(the “Company”) and Brandy M. Keen, an adult resident of the State of Colorado (the “Employee”).
The Employee and the Company may be referred to herein individually as a “Party” or collectively as the “Parties.”


 


AGREED
ACKNOWLEDGMENTS


 


A.       This
Agreement amends and restates that certain Employment Agreement by and between the Company and the Employee dated October 10,
2017 (the “Original Agreement”) and, upon execution of this Agreement, this Agreement supersedes and replaces
the Original Agreement, and the Original Agreement shall have no further force or effect.


 


B.       The
Company is engaged in the development, design and distribution of cultivation technologies for controlled environment agriculture
for state-regulated cannabis cultivation facilities, including lighting, environmental control and air sanitation designed to
meet the specific environmental conditions required for indoor cultivation and to reduce energy and water consumption (the “Business”).


 


C.       In
connection with the Business, the Company manufactures or is developing, sells and delivers the following products and services:
(i) liquid-based process cooling and climate control systems, (ii) a full-service engineering package for designing and engineering
commercial scale thermodynamic systems specific to indoor cultivation facility conditions, (iii) automation and control devices,
systems and technologies used for environmental and climate control in indoor cultivation facilities, (iv) a comprehensive, hybrid
cultivation facility design and building utilizing sunlight and a high-power LED lighting system, and (vi) and other products,
services, and technologies now or hereafter developed related to the foregoing (collectively, the “Products”)


 


D.       The
Business of the Company is highly competitive and requires the creation of intimate and prolonged relationships with the Company’s
customers because of the custom products developed for individual customers, and the significance of adapting to the marketing
plans continually being created by these customers.


 


E.       The
Company has invested and will continue to invest considerable sums of time, money, and other resources in developing the confidence
and loyalty of its customers and potential customers and to recruit, train, support and compensate its employees and potential
employees. In addition, the Company expends significant amounts of time and money to attract, identify, locate, and establish
contacts and business relationships with prospective customers. The loss of these existing and prospective relationships with
customers, and with existing and potential employees, will cause substantial and irreparable harm to the Company, which cannot
be accurately or adequately compensated by money alone.


 


F.       The
Company desires to retain the services of the Employee as a member of the Company’s management team. The Employee desires
to continue such employment and commits to devote all of the Employee’s business time and attention to services benefiting
the Company. Both the Employee and the Company wish to enter into this Agreement to set forth the terms and conditions of the
Employee’s employment with the Company.


 


G.       The
Employee acknowledges that, in connection with the execution of this Agreement, the Employee is receiving new and valuable consideration
from the Company including, without limitation, an award of restricted stock units under the Company’s 2017 Equity Incentive
Plan, as may be modified and amended by the Company from time to time (the “EIP”), pursuant to Section 7(c)
hereof.


 




    	 



    	 



    

 


H.       The
Employee acknowledges that, in the course of the Employee’s employment with the Company, the Employee has and will frequently
come into contact with the Company’s customers and suppliers to such an extent that the Employee may be able to control
or direct, in whole or in part, the business and relationships between the Company and its customers and suppliers. Accordingly,
the Company reposes its trust in the Employee not to disrupt or otherwise misappropriate the customer and supplier relationships
developed and/or supported by the Company.


 


I.       The
Employee has had and will have, during the course of the Employee’s employment with the Company, frequent and close contact
with the Company’s other executive managers, salespeople, and key staff employees. As a result of the Employee’s position,
the Employee will acquire and have access to confidential information concerning the Company’s employees, prospective employees,
customers, suppliers, and prospective customers and suppliers that is not easily or generally available to the Company’s
competitors.


 


J.       The
Employee acknowledges that, by virtue of the Employee’s position with the Company, the Employee will have access to certain
secret and confidential business data and information belonging to the Company including, but not limited to: marketing plans,
financial strategies, market surveys and assessments, customer and Company technical information, financial statements, budget
data, personnel records, customer profiles and purchase requirements, product design, engineering and technical specifications,
pricing plans and strategies, sales contracts and proposals, private and confidential discussions with executive managers, legal
advice and strategies, performance evaluations, price schedules from suppliers, litigation and planned litigation, capital needs,
lists of customers and potential customers, hiring and training goals, internal operation and production reports and schedules,
compensation packages, customer account projections, licenses, promotional plans and information, corporate policies for internal
operations, bids and proposals by suppliers and to customers, identities and personal profiles of key persons at customers and
potential customers, expense data by customer, and other confidential and sensitive business information developed and maintained
by the Company.


 


K.       The
Company has a valuable and proprietary interest in the confidential information described in paragraph J above and has expended
considerable time and money to safeguard and protect such information from direct or indirect divulgence of same by its employees,
including the Employee. In addition, as part of the Company’s relationship with each of its customers, the Company assures
customers that the unique, confidential, and secret information shared by customers with the Company will be protected from disclosure
to and unauthorized use by others. Any divulgence of such information will constitute an irreparable injury to the Company and
the Company’s customers.


 


L.       The
Employee acknowledges that (i) the Employee’s position with the Company is one of great trust and confidence requiring that
the Employee exercise a high degree of loyalty, honesty, and integrity, (ii) the Employee has and will receive substantial and
adequate monetary consideration and benefits pursuant to this Agreement, (iii) the Employee has read and understood the terms
of this Agreement and signed the same as a free and voluntary act, and (iv) the Employee understands that there is no need to
continue employment with the Company, but the Employee has freely chosen to enter into this Agreement because of a desire to take
advantage of the specific and unique opportunities offered by continued employment with the Company and the additional benefits
provided for herein.


 




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AGREEMENTS


 


In
consideration of the Agreed Acknowledgments and the mutual covenants and agreements set forth in this Agreement, the Parties agree
as follows:


 


1.       Acknowledgments.
The acknowledgments set forth above are accurate and are hereby incorporated by reference in this Agreement.


 


2.       Employment
and Duties. The Company hereby employs the Employee and the Employee hereby accepts employment with the Company on the
terms and conditions set forth in this Agreement. During the Term (as defined below), the Employee shall be employed by the Company
as a Senior Technical Advisor and, as such, the Employee shall have such responsibilities and authority as are customary for such
position of a company of similar size and nature as the Company as may be assigned from time to time, including, without limitation,
serving as the technical advisor to the Company’s sales representatives, providing technical support to assess and develop
scope of work, solutions and technical requirements for customer and prospective customer projects, assisting the Company in securing
Product sales, serving as technical advisor to the Company’s engineering and product development teams, and providing input
and direction for the product development and overall engineering focus for the Company. The Employee shall faithfully perform
for the Company the duties of such position and shall report directly to the Vice President – Sales and Project Management.
At all times during the Term, the Employee shall adhere to all of the Company’s policies, rules and regulations governing
the conduct of its employees, including without limitation, any compliance manual, code of ethics, employee handbook or other
policies adopted by the Company from time to time.


 


3.       Extent
of Services.


 


a.       Full-time
Employment. Commencing on the Effective Date and continuing through April 30, 2019, except for illnesses and vacation
periods, the Employee shall be a full-time employee of the Company and shall devote the Employee’s full business time and
attention and the Employee’s best efforts to the performance of the Employee’s duties and responsibilities under this
Agreement.


 


b.       Part-time
Employment. Commencing on May 1, 2019 and continuing through the Term Date (as defined below), the Employee shall become
a part-time employee of the Company and be expected to devote a minimum of thirty (30) hours per week, except for illness and
vacation periods, to the performance of the Employee’s duties and responsibilities under this Agreement.


 


c.       Permitted
Activities. During the Employee’s full- and part-time employment with the Company, the Employee may participate
in charitable, academic, community religious or other non-profit activities, and in trade or professional organizations, and engage
and participate in the specific activities listed in Exhibit A hereto (the “Permitted Activities”)
or such other activities as specifically agreed to in writing by the Company in advance from time to time in the Company’s
sole discretion, provided that all of the Employee’s activities outside of the Employee’s duties to the Company, individually
or in the aggregate, shall comply with the Company’s conflict of interest policies and corporate governance guidelines as
in effect from time to time, do not otherwise interfere with the Employee’s duties and responsibilities to the Company,
and do not compete with or adversely affect the Business of the Company. Subject to the provisions of Section 11 herein, the Employee
may make any passive investment in any publicly traded entity, or own five percent (5%) or less of the issued and outstanding
voting securities of any entity, provided, in any event, that the Employee is not obligated or required to, and shall not in fact,
devote any consulting or managerial effort or services in connection therewith, except for the Permitted Activities.


 


4.       Place
of Performance. Commencing on the Effective Date and continuing through April 30, 2019, the Employee will perform the
Employee’s duties for the Company from the Company’s corporate offices in Boulder, Colorado, except that the Employee
will travel to perform services as required for the proper performance of the Employee’s duties under this Agreement. Commencing
on May 1, 2019 and continuing through the Term Date, the Employee may relocate her residence and will only be expected to attend
significant trade shows, major customer meetings, or meetings at the Boulder office from time to time. The Company shall not be
responsible for any relocation costs, but the Company would continue to reimburse the Employee for reasonable business and travel
expenses pursuant to Section 8(d) hereof.


 




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5.       Term.
This Agreement and the Employee’s employment hereunder shall commence on the Effective Date and shall continue in full force
and effect until April 30, 2020 (the “Term”)(the last day of the Term is referred to herein as a “Term
Date”). For purposes of this Agreement, “Term” shall mean the actual duration of the Employee’s
employment hereunder, taking into account any early termination of employment pursuant to Section 8 hereof.


 


6.       Compensation.


 


a.       Salary.
Commencing on the Effective Date and continuing through April 30, 2019, the Company shall pay the Employee an annualized base
salary (the “Base Salary”) of $150,000 per year, which shall be payable in equal installments in accordance
with the Company’s standard payroll practice from time to time, less customary or legally required withholdings and deductions,
for periods actually worked by the Employee. Commencing on May 1, 2019 and continuing through the Term Date, the Base Salary shall
be reduced to $75,000 per year to reflect the Employee’s part-time employment.


 


b.       Sales
Incentive Program. Commencing on the Effective Date and continuing through April 30, 2019, the Employee shall be eligible
to participate in the Company’s sales incentive program for sales personnel, as in effect and as amended from time to time
by the Company (the “Sales Program”). In connection with the Sales Program, commencing on the Effective Date
and continuing through April 30, 2019, the Employee will be entitled to a sales incentive equal to one-quarter of one percent
(0.25%) of the net revenue collected and earned from Products sales originated by the Employee and any other salesperson employed
by the Company, payable quarterly in arrears (the “Sales Incentive”). The Company and the Employee acknowledge
and agree that the Sales Program, the Sales Incentive and any other sales incentives and commissions will terminate effective
May 1, 2019.


 


c.       Restricted
Stock Units. Upon execution of this Agreement or as soon as practicable thereafter, the Company shall grant 4,800,000
Restricted Stock Units (as defined in the EIP) to the Employee, which shall be subject to the terms of the EIP and a separate
Restricted Stock Unit Agreement to be executed by the Company and the Employee, substantially in the form attached hereto as Exhibit
B (the “Restricted Stock Unit Agreement”). The Restricted Stock Units shall be valued at Fair Market
Value (as defined in the EIP) on the date such Restricted Stock Units vest and, upon vesting, the Employee will receive one share
of the Company’s common stock (“Common Stock”) for each vested Restricted Stock Unit (with no cash purchase
price to be paid by the Employee for such share of Common Stock). As a condition to the Company’s obligations with respect
to the Restricted Stock Units (including, without limitation, any obligation to deliver any shares of Common Stock upon vesting
of the Restricted Stock Units, including vesting upon a Change of Control, as defined below), the Employee shall be responsible
for, and shall make arrangements satisfactory to the Company to pay to the Company, within fifteen (15) of the Company’s
delivery of written notice of the amount of such payment, any federal, state, local, or foreign taxes of any kind required to
be withheld with respect to the delivery of shares of Common Stock corresponding to such Restricted Stock Units. Subject to the
provisions of Sections 9(a)(v), 9(b)(ii), 9(c) and 9(d)(ii), the Restricted Stock Units shall vest as follows:


 


i.       1,000,000
Restricted Stock Units shall vest on June 30, 2018, subject to the Employee’s continued employment through the vesting date;


 


ii.       1,000,000
Restricted Stock Units shall vest on December 31, 2018, subject to the Employee’s continued employment through the vesting
date;


 




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iii.       1,000,000
Restricted Stock Units shall vest on June 30, 2019, subject to the Employee’s continued employment through the vesting date;


 


iv.       1,000,000
Restricted Stock Units shall vest on December 31, 2019, subject to the Employee’s continued employment through the vesting
date; and


 


v.       800,000
Restricted Stock Units shall vest on April 30, 2020, subject to the Employee’s continued employment through the vesting
date.


 


In
the event that (i) there is a “Change in Control” (as defined below) that occurs prior to the date on which the Restricted
Stock Units become fully vested, then 100% of the Restricted Stock Units that have not already vested as of the date of such termination
shall become vested. A “Change of Control” means a reorganization, merger, statutory share exchange, or consolidation
or similar transaction involving the Company, or a sale or other disposition of all or substantially all of the assets of the
Company, unless, following such transaction, all or substantially all of the individuals and entities who were the beneficial
owners of the Company’s equity and voting securities immediately prior to such transaction beneficially own, directly or
indirectly, more than fifty percent (50%) of the value of the then outstanding equity securities and the combined voting power
of the then outstanding voting securities.


d.       Clawback.
Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation,
paid to the Employee pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery
under any law, governmental regulation, or stock exchange listing requirement, will be subject to such deductions and clawback
as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement.


 


7.       Fringe
Benefits. The Company shall provide the following benefits to the Employee during the Term, subject to the Employee remaining
eligible for such benefits based on the Employee’s number of hours worked per week:


 


a.       Employee
Benefit Plans. The Employee will be eligible to participate in any employee benefit plans including, without limitation,
group insurance, profit sharing and 401(k) plans, sponsored generally by the Company for its employees as may be offered from
time to time. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time.


 


b.       Vacation.
Commencing on the Effective Date and continuing through April 30, 2019, the Employee shall accrue in accordance with the Company’s
vacation policy as in effect from time to time twenty (20) days per year of paid vacation time, provided that, any earned but
unused vacation in a year may not be carried forward to future years. Commencing on May 1, 2019 and continuing through the Term
Date, the Employee shall accrue in accordance with the Company’s vacation policy as in effect from time to time ten (10)
days per year of paid vacation time, provided that, any earned but unused vacation in a year may not be carried forward to future
years.


 


c.       Personal
Days, Sick Leave and Holidays. Commencing on the Effective Date and continuing through April 30, 2019, the Employee shall
be entitled to receive paid personal days, sick days and holidays under the guidelines established by the Company from time to
time for the Company’s executive and management employees, provided that, any earned but unused personal and sick days in
a year may not be carried forward to future years. Commencing on May 1, 2019 and continuing through the Term Date, the Employee
shall be entitled to receive paid personal days, sick days and holidays under the guidelines established by the Company from time
to time for the Company’s executive and management employees, provided that, such paid personal days, sick days and holidays
shall be prorated based on the Employee’s part-time employment, and further provided that, any earned but unused personal
and sick days in a year may not be carried forward to future years.


 




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d.       Business
Expense Reimbursement. Subject to the Company’s policies and procedures for the reimbursement of business expenses
incurred by its executive and management employees, the Company shall reimburse the Employee for reasonable expenses incurred
by the Employee in connection with the performance of the Employee’s duties pursuant to this Agreement, including, but not
limited to, travel expenses, professional conventions or similar professional functions and other reasonable business expenses.
The Employee agrees to provide the Company with receipts and/or documentation sufficient to permit the Company to take its full
business expense deduction. The Company shall have no obligation to reimburse the Employee for expenses claimed if the Employee
does not provide sufficient receipts and/or documentation. The Employee shall submit requests for reimbursement of business expenses
at least once every month. The Employee shall be entitled to a corporate credit card, and any frequent flyer miles earned for
travel contemplated under this Agreement shall be owned by the Employee.


 


8.       Termination.
Notwithstanding any other provision of this Agreement to the contrary, during the Term, the employment of the Employee by the
Company shall terminate as follows:


 


a.       Death/Disability.
The employment of the Employee by the Company shall terminate immediately upon death of the Employee or immediately upon the determination
of Disability in accordance with this Section 8(a). As used in this Agreement, “Disability” shall mean the
Employee is unable to perform the Employee’s duties hereunder due to the onset of any sickness, injury or disability, even
with reasonable accommodation, for a consecutive period of one hundred eighty (180) days or an aggregate of six (6) months in
any twelve (12)-consecutive month period. A determination of “Disability” shall be made by a physician satisfactory
to both the Employee and the Company, provided that if the Employee and the Company do not agree on a physician, the Employee
and the Company shall each select a physician and these two together shall select a third physician, whose determination as to
Disability shall be binding on all parties. The appointment of one or more individuals to carry out the offices or duties of the
Employee during a period of the Employee’s inability to perform such duties and pending a determination of Disability shall
not be considered a breach of this Agreement by the Company.


 


b.       With
Cause. The employment of the Employee by the Company shall terminate at the election of the Company, on reasonable grounds,
immediately upon the giving of written notice by the Company to the Employee of the Employee’s termination with Cause. For
purposes of this Agreement, the term “Cause” means that the Employee: (i) has been convicted of, or entered
a plea of guilty or “nolo contendere” to, a felony or a crime causing material harm to the standing and reputation
of the Company, (ii) violated any of the Employee’s obligations under this Agreement, any award agreement under the EIP,
any proprietary rights, non-competition, non-disclosure or other restrictive covenant agreements in effect between the Employee
and the Company, which are demonstrably willful or deliberate on the Employee’s part, (iii) has willfully or deliberately
failed to perform the Employee’s material duties assigned by the Company (other than by reason of illness or temporary disability),
(iv) has engaged in illegal conduct, gross misconduct, fraud or material dishonesty in connection with the Business of the Company,
(v) has engaged in willful misappropriation or embezzlement of any of the Company’s funds or property, or (vi) has engaged
in conduct that violated the Company’s then existing written internal policies or procedures and which is materially detrimental
to the Business or reputation of the Company. Any of the aforesaid clauses (ii), (iii) and (vi) may be cured by the Employee,
if curable, if cured within fifteen (15) days after receipt by the Employee of written notice of the same. In the event such acts
or omissions are capable of being cured, the effective date of termination, in the event of the Employee’s failure to cure,
must be at least fifteen (15) days after such notice of termination to afford the Employee the ability to cure the same. The Company
may place the Employee on paid leave for up to ninety (90) consecutive days while it is determining whether there is a basis to
terminate Employee’s employment for Cause. This leave will not constitute Good Reason.


 




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c.       Without
Cause. The employment of the Employee by the Company shall terminate at the election of the Company upon written notice
(or upon such later date specified in such notice) to the Employee without Cause.


 


d.       Voluntary
Resignation. The employment of the Employee by the Company shall terminate at the election of the Employee upon thirty
(30) days’ prior written notice to the Company (which the Company may, in its sole discretion, make effective earlier than
any notice date) for a Voluntary Resignation. The Employee’s Voluntary Resignation may be for “Good Reason”
if, other than to the extent the cause of the event is primarily the result of Employee’s voluntary actions or omissions
in providing services hereunder, (i) the Company commits a material breach of its obligations under this Agreement, (ii) there
is a material reduction of the Employee’s duties, authority or status other than reductions or limitations imposed by law
or regulatory authority or otherwise set forth in this Agreement, or (iii) a material reduction in (or a failure to pay or provide)
the Employee’s Base Salary or other benefits to which the Employee is entitled under this Agreement other than reductions
otherwise set forth in this Agreement. The Employee will provide written notice to the Company of the existence of any event or
condition that constitutes Good Reason within ninety (90) days of its existence. Upon receipt of such notice, the Company shall
have a period of thirty (30) days during which it may remedy such event or condition that constitutes Good Reason (the “Cure
Period”). Notwithstanding any other provision herein, the Employee’s termination of employment shall not constitute
termination with Good Reason unless such termination occurs within sixty (60) days following the last day of the Cure Period.


 


e.       Notice
of Termination. Any termination of the Employee’s employment by the Company or by the Employee (other than termination
pursuant to Death) shall be communicated by written Notice of Termination to the other Party hereto in accordance with this Agreement.
For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Employee’s employment under the provision so indicated.


 


f.       Date
of Termination. The “Date of Termination” shall mean the date the Employee’s employment is terminated
in accordance with this Section 8.


 


9.       Effects
of Termination.


 


a.       Death/Disability.
If the employment of the Employee should terminate during the Term due to the Employee’s death, of if the employment of
the Employee should terminate during the Term at the election of the Company due to Disability, then the Company will pay to the
Employee or, in the event of the Employee’s death, to the estate of the Employee:


 


i.       any
earned and accrued but unpaid Base Salary through the Date of Termination payable in accordance with the Company’s normal
payroll practices;


 


ii.       reimbursement
for any unreimbursed business expenses incurred through the Date of Termination in accordance with Section 7(d);


 


iii.       all
other applicable payments or benefits to which the Employee shall be entitled under, and paid or provided in accordance with,
the terms of any applicable arrangement, plan or program under Section 7(a)-(c) (collectively, Sections 9(a)(i)-(iii), payable
in accordance with this Section 9(a), shall be hereafter referred to as the “Accrued Benefits”);


 




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iv.       subject
to Section 9(e), any accrued but unpaid Sales Incentive for the calendar quarter immediately prior to the termination, payable
when the applicable Sales Incentive for such calendar quarter would have otherwise been paid; and


 


v.       subject
to Section 9(e), any unvested Restricted Stock Units that are subject to vesting under Section 6(c) shall continue to vest in
accordance with the vesting schedule set forth in Section 6(c) notwithstanding the Employee’s termination of employment
with the Company.


 


b.       Termination
by the Company without Cause or Voluntary Resignation by the Employee for Good Reason. If the employment of the Employee
should terminate at the election of the Company without Cause or at the election of the Employee due to a Voluntary Resignation
for Good Reason, the Company shall pay or provide to the Employee the Accrued Benefits and reimbursement for any unreimbursed
business expenses incurred through the Date of Termination in accordance with Section 7(d), and, subject Sections 9(e) and 10:


 


i.       any
accrued but unpaid Sales Incentive for the calendar quarter immediately prior to the termination, payable when the applicable
Sales Incentive for such calendar quarter would have otherwise been paid; and


 


ii.       any
unvested Restricted Stock Units that are subject to vesting under Section 6(c) shall continue to vest in accordance with the vesting
schedule set forth in Section 6(c) notwithstanding the Employee’s termination of employment with the Company, provided
that, on each vesting date that the Employee has not materially breached the Restrictive Covenants, which breach has not been
cured by the Employee, if curable, within ten (10) days following written notice thereof from the Company.


 


c.       By
the Company For Cause; Voluntary Resignation by the Employee without Good Reason. In the event that the Employee’s
employment is terminated during the Term by the Company for Cause or a Voluntary Resignation by the Employee without Good Reason,
the Company shall pay or provide to the Employee the Accrued Benefits and reimbursement for any unreimbursed business expenses
incurred through the Date of Termination in accordance with Section 7(d), and any unvested Restricted Stock Units as of the Termination
Date shall be immediately forfeited.


 


d.       Expiration.
In the event that the Employee’s employment terminates by reason of the expiration of the Term hereof, then the Company
shall pay to the Employee the Accrued Benefits and reimbursement for any unreimbursed business expenses incurred through the Date
of Termination in accordance with Section 7(d), and, subject Section 9(d):


 


i.       any
accrued but unpaid Sales Incentive for the calendar quarter immediately prior to the termination, payable when the applicable
Sales Incentive for such calendar quarter would have otherwise been paid; and


 


ii.       the
unvested Restricted Stock Units that are subject to vesting under Section 6(c) as of the Term Date shall vest as of the Term Date.


 


e.       Release.
Any payments or benefits by the Company required under Sections 9(a)(iv)-(v), 9(b)(i)-(ii) and 9(d)(i)-(ii) shall be conditioned
on and shall not be payable unless the Company receives from the Employee (or, in the event of the Employee’s death, the
estate of the Employee) within thirty (30) days of the Date of Termination a fully effective and non-revocable written release
in form and substance reasonably acceptable to the Company of any and all past, present or future claims that the Employee (or,
in the event of the Employee’s death, the estate of the Employee) may have against the Company or any of its affiliates
and any of their respective officers, directors and other related parties (all claims released in this Section 9(e) being referred
to as the “Released Claims”), provided, however, that the Released Claims shall not include any claim by the
Employee for indemnification from the Company relating to any act or omission prior to the Date of Termination, in each instance
to the extent the Employee would have the right to be indemnified therefor under (and not otherwise prohibited or restricted by)
(i) the laws of the State of Nevada, (ii) any Federal law applicable to the Company or the Employee, (iii) the Company’s
articles of incorporation or bylaws, as amended, and (iv) the D&O Indemnity Agreement by and between the Employee and the
Company dated May 10, 2017. The Company agrees to provide a form of release within seven (7) days of the Date of Termination.


 




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f.       Termination
of Authority. Immediately upon the Employee terminating or being terminated from the Employee’s employment with
the Company for any reason, notwithstanding anything else appearing in this Agreement or otherwise, the Employee will stop serving
the functions of the Employee’s terminated or expired position(s), including but not limited to any director or officer
positions at the Company or any of its affiliates, and shall be without any of the authority or responsibility for such position(s).


 


10.       Section
409A.


 


a.       Although
the Company does not guarantee the tax treatment of any payments under this Agreement, the intent of the Parties is that the payments
and benefits under this Agreement be exempt from, or comply with, Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), and all Treasury Regulations and guidance promulgated thereunder (“Code Section 409A”)
and to the maximum extent permitted this Agreement shall be limited, construed and interpreted in accordance with such intent.
In no event whatsoever shall the Company or its affiliates or their respective officers, directors, employees or agents be liable
for any additional tax, interest or penalties that may be imposed on the Employee by Code Section 409A or damages for failing
to comply with Code Section 409A.


 


b.       Notwithstanding
any other provision of this Agreement to the contrary, to the extent that any reimbursement of expenses constitutes “deferred
compensation” under Code Section 409A, such reimbursement shall be provided no later than December 31st of the
year following the year in which the expense was incurred (or, where applicable, no later than such earlier time required by this
Agreement). The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent
year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any
other year.


 


c.       For
purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)),
the right to receive payments in the form of installment payments shall be treated as a right to receive a series of separate
payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment. Whenever
a payment under this Agreement may be paid within a specified period, the actual date of payment within the specified period shall
be within the sole discretion of the Company.


 


d.       Notwithstanding
any other provision of this Agreement to the contrary, if at the time of the Employee’s separation from service (as defined
in Code Section 409A), the Employee is a “Specified Employee”, then the Company will defer the payment or commencement
of any nonqualified deferred compensation subject to Code Section 409A payable upon separation from service (without any reduction
in such payments or benefits ultimately paid or provided to the Employee) until the date that is six (6) months following separation
from service or, if earlier, the earliest other date as is permitted under Code Section 409A (and any amounts that otherwise would
have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six (6)-month period
or such shorter period, if applicable). The Employee will be a “Specified Employee” for purposes of this Agreement
if, on the date of the Employee’s separation from service, the Employee is an individual who is, under the method of determination
adopted by the Company designated as, or within the category of executives deemed to be, a “Specified Employee” within
the meaning and in accordance with Treasury Regulation Section 1.409A-1(i). The Company shall determine in its sole discretion
all matters relating to who is designated as a “Specified Employee” and the application of and effects of the change
in such determination.


 




    	9



    	 



    

 


e.       Notwithstanding
anything in this Agreement or elsewhere to the contrary, a termination of employment shall not be deemed to have occurred for
purposes of any provision of this Agreement providing for the payment of any amounts or benefits that constitute “non-qualified
deferred compensation” within the meaning of Code Section 409A upon or following a termination of the Employee’s employment
unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes
of any such provision of this Agreement, references to a “termination,” “termination of employment” or
like terms shall mean “separation from service” and the date of such separation from service shall be the date of
termination for purposes of any such payment or benefits.


 


11.       Activity
Restrictions; Employee Covenants.


 


a.
       Purpose. As previously acknowledged, the Company has invested heavily
in its information systems, personnel, product development, customers, and customer development. As a member of the Company’s
management group, the Employee is entrusted with the fruits of these investments and the decisions to be made regarding similar
future investments. In order to participate in the benefits of a highly compensated position of trust with the Company, the Company
requires a written commitment from key employees that its trust will not be misplaced and its investments lost or damaged. Accordingly,
the Employee makes the following promises regarding the Employee’s activities.


 


b.
       Best Efforts. The Employee will at all times perform all of the Employee’s
assigned duties faithfully and exert the Employee’s best efforts to fully perform those duties pursuant to the express and
implicit terms of this Agreement to the reasonable satisfaction of the Company. During the Term, the Employee will not engage
in or become interested in any calling, activity, or other business which is or may be contrary to or in competition with the
interests and welfare of the Company.


 


c.
       Inventions; Intellectual Property.


 


i.       Inventions.
Every invention and improvement conceived, invented or developed by the Employee relating to or useable in the Business then being
carried on or actively contemplated by the Company now existing or hereafter developed shall become the exclusive property of
the Company. With respect to all inventive ideas originated or developed by the Employee which relate to the Business during the
Term hereof, or as to which the Employee has acquired information as a result of the Employee’s employment with the Company,
and all patents obtained on such inventive ideas, (a) the Employee agrees to disclose and assign, without charge, all such inventive
ideas and any patents obtained thereon to the Company, but without expense to the Employee, (b) the Employee agrees that all such
inventive ideas and any patents thereof shall be the exclusive property of the Company, and (c) the Employee will, at any and
all times, furnish such information and assistance and execute such applications and other documents as may be advisable in the
opinion of the Company to obtain both domestic and foreign patents, title to which is to be vested in the Company, and the Employee
shall give the Company the full and exclusive power to prosecute all such applications and all proceedings in connection therewith.


 


ii.       Intellectual
Property. The Employee shall promptly disclose to the Company or any successor or assign, and grant to the Company or
its successors and assigns without any separate remuneration or compensation other than that received by the Employee in the course
of the Employee’s employment, the Employee’s entire right, title and interest in and to any and all inventions, developments,
discoveries, models, or business plans or opportunities, or any other intellectual property of any type or nature whatsoever related
to the Business or the Products (“Intellectual Property”), developed by the Employee during the period of the
Employee’s employment by the Company or its affiliates and whether developed by the Employee during or after business hours,
or alone or in connection with others, that is in any way related to the Business of the Company, its successors or assigns. This
provision shall not apply to books or articles authored by the Employee during non-work hours, consistent with the Employee’s
obligations under this Agreement, so long as such books or articles (a) are not funded in whole or in part by the Company, and
(b) do not contain any confidential information or Intellectual Property of the Company. The Employee agrees, at the Company’s
expense, to take all steps necessary or proper to vest title to all such Intellectual Property in the Company, and cooperate fully
and assist the Company in any litigation or other proceedings involving any such Intellectual Property.


 




    	10



    	 



    

 


d.
       Non-solicitation of Business. During the Term hereof and for a period
of two (2) years after the termination or expiration of this Agreement, regardless of who initiated the termination, the Employee
will not, directly or indirectly, solicit, interfere with, or divert away from the Company any customer of the Company who did
any business with the Company during the Term hereof or any prospective customer with whom the Company had any contact during
the Term hereof.


 


e.
       Non-enticement of Personnel. During the Term hereof and for a period of
two (2) years after the termination or expiration of this Agreement, regardless of who initiated the termination, the Employee
shall not, directly or indirectly, as an individual or on behalf of any other person or entity, hire, solicit, recruit, or attempt
to entice away from the Company or any customer of the Company any person employed by or providing services to the Company or
any customer of the Company. The Employee shall not approach any such employees for such a prohibited purpose and shall not knowingly
cooperate in any other person or entity’s efforts to do so. The Company’s customers are third-party beneficiaries
of this covenant and shall have standing to enforce the terms of this Section 11(e) by seeking whatever equitable and legal remedies
may be available to the Company hereunder.


 


f.
       Confidentiality. The Employee shall not at any time during the Term hereof
or at any time thereafter communicate, divulge, disclose, take, or use for himself any information, knowledge, data, or materials
that were disclosed or obtained by the Employee during the Term (including, without limitation, any information and knowledge
that was conceived, created, or developed by the Employee during the course of the Employee’s employment with the Company)
which is related to the Business and the Products and is not already generally known in the Company’s trade by competitors.
This restriction on confidential information disclosure and use shall apply to knowledge or information which relates to the Business
or the business of the Company’s customers and is in the nature of a business secret of the Company or the Company’s
customers. Included within the scope of this restriction shall be the specific items identified in Section 11(h) hereof and any
other information and matters designated by the Company (verbally or in writing) to be confidential during the Term hereof. The
Company’s customers are third-party beneficiaries of the aforestated covenants in this Section 11(f) and shall have standing
to enforce its terms and seek whatever equitable or legal remedy that is necessary to repay or avoid harm to them, including,
but not limited to, any remedy available to the Company under this Agreement. The obligations of the Employee with respect to
the disclosure and use of confidential information under this Section 11(f) shall cease to the extent such information becomes
generally known in the Company’s trade by competitors through a means other than a breach of this Agreement by the Employee.
In the event the Employee is required by any legal proceedings to disclose confidential information, the Employee shall provide
the Company with prompt notice thereof so that the Company may seek an appropriate protective order and/or waive compliance by
the Employee with the provisions hereof.


 


g.
       Non-competition. During the Term hereof and for a period of two (2) years
after the termination or expiration of this Agreement, regardless of who initiated the termination, the Employee shall not, alone,
or as an agent, employee, servant, officer, partner or stockholder of any other corporation or business, directly or indirectly,
engage in employment or business activity which relates to the sale, manufacturing, or marketing of products which are competitive
with, substantially similar to, or serve the same function as the Products manufactured, marketed or sold by the Company either
now or at any time during the Term. This post-termination restriction is limited to activities in or directed at the geographic
area located in North America where the Company has sold or manufactured the Products at any time during the Term hereof. The
Employee specifically agrees, without limitation, that the Employee will not accept a similar position or perform the same or
similar responsibilities or services as performed for the Company for any business entity that is engaged in a business that is
the same, or substantially similar to, the Business (i.e., a competitor).


 




    	11



    	 



    

 


 


h.
       Return of Company Materials. Upon request at any time during the Term
hereof and without request at the time of the termination or expiration of this Agreement, without regard for who initiated the
termination, the Employee agrees to promptly return (without retaining any copies, summaries, files or notes derived from source
materials) all information and records regarding the Business and the Products, whether or not created by the Employee during
the Term hereof including, but not be limited to: all financial, sales and purchase data for the Business and the Company’s
customers, all financial statements and projections, all marketing surveys and analyses, all strategic planning material, all
data on the Company’s competitors, all customer information, all records regarding prospective customers of the Company,
all documents regarding pending or threatened litigation involving the Company, all legal opinions, all personnel evaluations
for the Company’s employees and outside vendors and contractors, all computer hardware and software, all price lists and
formulas, all pricing quotations or proposals, all lists or compilations of customers and prospects, all promotional materials,
all internal operating reports, all budgets and projections, all information related to the Company’s product development
and intellectual property, all product designs, specifications, drawing, engineering, bills of material and other information
related to the Products, all corporate and equipment manuals and policies, all contracts with customers and suppliers, all supplier
prices and quotations, all business correspondence, all catalogs and product samples, all sensitive customer information, all
sales reports and invoices, and all tangible and intangible property owned by the Company.


 


i.
       Non-Disparagement. During the Term and thereafter, the Employee shall
not knowingly, directly or indirectly, make negative comments or otherwise disparage the Company, any of its affiliates, or any
of their respective officers, directors, employees, shareholders, agents or businesses in any manner likely to be harmful to them
or their business reputations or personal reputations. The Company shall direct its officers, directors and senior management
team to not disparage or encourage or induce others to disparage the Employee. 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), provided that the Employee has given the Company prompt written notice
of any such legal process and cooperated with the Company’s efforts to seek a protective order.


 


j.
       Employee’s Representations. The Employee represents and acknowledges
that none of the activity restrictions set forth in this Section 11 will prevent the Employee from obtaining employment, cause
undue hardship, cause a relocation, or adversely impact numerous other business and employment opportunities that are not affected
by the existence of these restrictions. The Employee further acknowledges that the Employee believes the foregoing restrictions
to be reasonable and necessary to protect the Company’s legitimate business interests. Any violation of the restrictions
in this Section 11 can cause harm to the Company of an irreparable nature for which money damages alone will not suffice. The
Employee agrees that the Employee will fully and promptly disclose to any person or entity with which the Employee becomes associated
subsequent to the termination or expiration of this Agreement all of the restrictions on the Employee’s post-termination
activities. The Company shall also have the right to disclose this Agreement to any business entity hiring or utilizing the services
of the Employee subsequent to the termination or expiration of this Agreement.


 




    	12



    	 



    

 


k.
       Common Law and Trade Secrets. The Employee and the Company agree that
nothing in this Agreement shall be construed to limit or negate the common law of torts or trade secrets where it provides the
Company with broader protection than that provided herein.


 


l.
       Tolling. In the event of any violation of the provisions of this Section
11, the Employee acknowledges and agrees that the post-termination restrictions contained in this Section 11 shall be extended
by a period of time equal to the period of such violation, it being the intention of the Parties hereto that the running of the
applicable post-termination restriction period shall be tolled during any period of such violation.


 


m.
       Rights and Remedies upon Breach. The Employee acknowledges and agrees
that any breach by the Employee of any of the provisions of Section 11 (the “Restrictive Covenants”) would
result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Employee
breaches, or threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the Company and its affiliates
shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally
enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available
to the Company and its affiliates, under law or in equity (including, without limitation, the recovery of damages):


 


i.       the
right and remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages)
by any court of competent jurisdiction, including, without limitation, the right to an entry against the Employee of restraining
orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether
or not then continuing, of such covenants; and


 


ii.       the
right and remedy to require the Employee to account for and pay over to the Company or any of its affiliates all compensation,
profits, monies, accruals, increments or other benefits (collectively, “Benefits”) derived or received by the
Employee as the result of any transactions constituting a breach of the Restrictive Covenants, and the Employee shall account
for and pay over such Benefits to the Company and, if applicable, its affected affiliates.


 


12.       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company’s successors and assigns
and the Employee’s personal or legal representatives, executors, administrators, heirs, distributees, devisees and legatees.
This Agreement shall not be assignable by the Employee, it being understood and agreed that this is a contract for the Employee’s
personal services. This Agreement shall not be assignable by the Company, except that the Company may assign it to an affiliate
of the Company and shall assign it in connection with a transaction involving the succession by a third party to all or substantially
all of the Company’s business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation,
liquidation or otherwise). When assigned to a successor, the assignee shall assume this Agreement and expressly agree to perform
this Agreement in the same manner and to the same extent as the Company would be required to perform it in the absence of such
an assignment and the Company shall be released of all obligations hereunder. For all purposes under this Agreement, the term
“Company” shall include any successor to the Company’s business and/or assets that executes and delivers the
assumption agreement described in the immediately preceding sentence or that becomes bound by this Agreement by operation of law.
This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns as provided
in this Section 12 and is not for the benefit of, nor may any provision hereof be enforced by, any other person, except as otherwise
set forth in this Agreement.


 




    	13



    	 



    

 


13.       Alternative
Dispute Resolution.


 


a.       Coverage.
Except as otherwise expressly provided in this Agreement or by law, this Section 13 is the sole and exclusive method by which
the Employee and the Company are required to resolve any and all disputes arising out of or related to the Employee’s employment
with the Company or the termination of that employment, each of which is referred to as “Employment-Related Dispute,”
including, but not limited to, disputes arising out of or related to any of the following subjects: (i) compensation or other
terms or conditions of the Employee’s employment, (ii) application or enforcement of any Company program or policy to the
Employee, (iii) any disciplinary action or other adverse employment decision of the Company or any statement related to the Employee’s
employment, performance or termination, (iv) any policy of the Company or any agreement between the Employee and the Company,
(v) disputes over the arbitrability of any controversy or claim which arguably is or may be subject to this Section 13, (vi) claims
arising out of or related to any current or future federal, state or local civil rights laws, fair employment laws, wage and hour
laws, fair labor or employment standards laws, laws against discrimination, equal pay laws, wage and salary payment laws, plant
or facility closing or layoff laws, laws in regard to employment benefits or protections, family and medical leave laws, and whistleblower
laws, including by way of example, but not limited to, the federal Civil Rights Acts of 1866, 1871, 1964 and 1991, the Pregnancy
Discrimination Act of 1978, the Age Discrimination in Employment Act of 1967, the Equal Pay Act of 1963, the Fair Labor Standards
Act of 1938, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, and the Employee Retirement
Income Security Act of 1978, as they have been or may be amended from time to time, or (vii) any other dispute arising out of
or related to the Employee’s employment or the Employee’s termination.


 


b.       Negotiation;
Mediation. Any Employment-Related Dispute asserted by one Party against the other Party shall be delivered in writing
to the other Party. During the fifteen (15)-day period following receipt of the assertion by the other Party, the Parties shall
attempt in good faith to negotiate a resolution of the Employment-Related Disputes so asserted. If the Employment-Related Disputes
so asserted cannot be settled through negotiation and remains unresolved after the fifteen (15)-day negotiation period, the Employee
or the Company may submit the dispute to mediation and the Parties shall attempt in good faith to resolve the dispute by mediation,
under the mediation procedure of the American Arbitration Association (“AAA”). Unless the Parties agree otherwise
in writing, the mediation shall be conducted by a single mediator, and the mediator shall be selected from an appropriate Judicial
Arbiter Group, Inc. (“JAG”) panel pursuant to the AAA rules. The mediation shall be conducted in Denver, Colorado.
Unless the Parties agree otherwise, the cost of the mediator’s professional fees and expenses and any reasonable administrative
fee will be shared and paid equally by the Parties, and each Party shall bear its own attorneys’ fees and costs of the mediation.


 


c.       
Binding Arbitration. If the Employment-Related Disputes so asserted cannot be settled through mediation and remains
unresolved thirty (30) days after the appointment of a mediator, the Employee or the Company may submit the dispute to arbitration
and the dispute shall be settled in arbitration. Notice of a demand to arbitrate a dispute by either Party shall be given in writing
to the other at their last known address. Arbitration shall be commenced by the filing by a party of an arbitration demand with
the JAG in its office in Denver, Colorado. The arbitration and resolution of the dispute shall be resolved by a single arbitrator
appointed by the JAG pursuant to AAA rules. The arbitration shall in all respects be governed and conducted by applicable AAA
rules, and any award and/or decision shall be conclusive and binding on the parties. The arbitration shall be conducted in Denver,
Colorado regardless of the particular plant or facility of the Parties. The arbitrator shall supply a written opinion supporting
any award, and judgment may be entered on the award in any court of competent jurisdiction. Each Party shall pay its own fees
and expenses for the arbitration except for any costs and charges imposed by the JAG which may be assessed against the losing
Party by the arbitrator. Any fees of the arbitrator for the arbitrator’s services shall in all events be shared and paid
equally by the Parties.


 




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d.       Equitable
Relief. In the event that preliminary or permanent injunctive relief is necessary or desirable in order to prevent a Party
from acting contrary to this Agreement or to prevent irreparable harm prior to a confirmation of an arbitration award, including
without limitation as provided under Section 14(h) hereof, then either Party is authorized and entitled to commence a lawsuit
solely to obtain equitable relief against the other pending the completion of the arbitration in a court having jurisdiction over
the Parties. All rights and remedies of the parties shall be cumulative and in addition to any other rights and remedies obtainable
from arbitration.


 


e.       Severability.
In the event that any court or arbitrator finds or holds any restriction contained in this Agreement, including the Restrictive
Covenants, to be unreasonable, invalid, or unenforceable, then it is the express intent of the Parties that the court or arbitrator
so holding shall modify or amend the offending restriction or restrictions in any reasonable fashion so as to render it or them
enforceable to the fullest extent possible under prevailing law. In the event that any restriction is deemed void and unenforceable
and not suitable or capable of being so modified, then such restriction shall be severed. Each term and provision of this Agreement
is and shall be construed as severable in whole or in part, and, if any provision or the application thereof to particular circumstances
should be invalid, illegal, or unenforceable, then the remaining terms and provisions shall not be affected and shall remain fully
enforceable. An adjudication or finding of invalidity or unenforceability for one jurisdiction of any particular provision shall
not invalidate or void such provision in any other jurisdiction. It is the express intent of the Parties that all restrictions
imposed by this Agreement be construed and applied to avoid legal nullities and with a view towards enforcement whenever possible


 


14.       Miscellaneous.


 


a.       Time
of the Essence. Time is of the essence with respect to this Agreement. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a business day (i.e, a Saturday, Sunday or federal
holiday), then such action may be taken or such right may be exercised on the next succeeding business day.


 


b.       Entire
Agreement. This Agreement (together with the Exhibits hereto and any agreements, policies or other documents specifically
referenced herein) constitutes the entire understanding or agreement between the Company and the Employee relating to the subject
matter hereof and there is no understanding or agreement, oral or written, which is not set forth herein. This Agreement supersedes
and replaces any prior employment agreement or understanding, oral or written, between the Company and the Employee including,
without limitation, the Original Agreement. This Agreement may only be amended by a writing signed by the Company and the Employee.


 


c.       Waiver.
No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed by the Parties.
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any Party to exercise any right hereunder in any manner impair the exercise of any such right.


 


d.       Construction.
In the event of a conflict or ambiguity created between the Company’s current personnel manual for all employees and this
Agreement, it is agreed that this Agreement shall control. No policies, procedures, or statements of any nature by the Company
shall modify this Agreement or be construed to create express or implied obligations to the Employee. The titles and subtitles
used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
The Parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise this Agreement
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting Party
shall not be employed in the interpretation of this Agreement or any amendments thereto. The word “including” shall
be construed to include the words “without limitation.” In this Agreement, unless the context otherwise requires,
references to the singular shall include the plural and vice versa. The word “Company” shall be construed to include
the Company and its subsidiaries and affiliates, whether now existing or hereafter established.


 




    	15



    	 



    

 


e.       Notices.
All notices and other communications hereunder shall be in writing, and shall be deemed to have been duly given if delivered personally
or if sent by overnight courier or by certified mail, return receipt requested, postage prepaid, to the relevant address set forth
below, or to such other address as the recipient of such notice or communication shall have specified in writing to the other
Party hereto, in accordance with this Section 14(e).


 


	 	i.	If
    to the Company: 	 	Surna
    Inc.
	 	 	 	 	1780
    55th Street
	 	 	 	 	Boulder,
    Colorado 80301
	 	 	 	 	Attention:
    CEO
	 	 	 	 	 
	 	ii.	If
    to the Employee, at the Employee’s last residence shown on the records of the  Company. 


 


f.       
Public Announcements. The Company intends to publicly announce and disclose this Agreement and the subject matter
hereof in accordance with applicable laws. Until such time as the Company has publicly announced and/or disclosed this Agreement
and the subject matter hereof, the Employee shall not publicly announce or disclose to any third party the existence of this Agreement
or the subject matter hereof.


 


g.       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of Colorado, without regard to the principles
of conflicts of law thereof.


 


h.       Equitable
Relief. The Employee acknowledges and agrees that, notwithstanding anything herein to the contrary, including without
limitation Section 13(d) hereof, upon any breach by the Employee of the Employee’s obligations under Section 11, the Company
will have no adequate remedy at law, and accordingly shall be immediately entitled to specific performance and other appropriate
injunctive and equitable relief in a court of competent jurisdiction.


 


i.       Cooperation
in Future Matters. The Employee hereby agrees that for a period of eighteen (18) months following the termination or expiration
of this Agreement, the Employee shall cooperate fully with the Company’s reasonable requests relating to matters that pertain
to the Employee’s employment by the Company, including, without limitation, providing information or limited consultation
as to such matters, participating in legal proceedings, investigations or audits on behalf of the Company, or otherwise making
herself reasonably available to the Company for other related purposes. Any such cooperation shall be performed at scheduled times
taking into consideration the Employee’s other commitments. The Employee shall not be required to perform such cooperation
to the extent it conflicts with any requirements of exclusivity of services for another employer or otherwise, nor in any manner
that in the good faith belief of the Employee would conflict with the Employee’s rights under or ability to enforce this
Agreement. The Employee will be compensated by the Company, as an independent contractor, at a rate of $85 per hour for services
actually rendered by the Employee at the request of the Company under this Section 14(i).


 




    	16



    	 



    

 


j.       Withholding.
Any payments provided for in this Agreement shall be paid net of any applicable income tax withholding required under federal,
state or local law.


 


k.       Survival.
Notwithstanding anything in this Agreement or elsewhere to the contrary, the provisions of Sections 9, 10, 11, 12, 13 and 14 shall
survive the termination of the Employee’s employment or the termination or expiration of this Agreement.


 


l.       Execution
and Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the U.S. ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for
all purposes.


 


m.       Section
10b-5 Plan. During the Term, the Company will cooperate with the Employee in the implementation of a Section 10b-5 plan
commencing on or about January 1, 2019 to allow the Employee and her spouse (collectively, the “Keens”) to sell shares
of the Company’s common stock owned by the Keens in open market transactions. The Section 10b-5 plan will be implemented
to allow the Keens to sell shares of the Company’s common stock in monthly intervals and in an amount not to exceed 200,000
shares per month. The intent underlying the Section 10b-5 plan is to reduce the Keens’ common stock ownership below the
10% threshold for reporting under Section 16(a) of the Securities Exchange Act of 1934, as amended. As part of this arrangement,
as long as the Employee is employed by the Company and for the six months thereafter, the Employee will not acquire any shares
of the Company’s common stock in market, private or other transactions.


 


 


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


 




    	17



    	 



    

 


IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below.


 


	EMPLOYEE	 	COMPANY
	 	 	 
	 	 	Surna Inc.
	 	 	 
	/s/
    Brandy M. Keen 	 	By:	/s/
    Chris Bechtel 
	Brandy
    M. Keen, Individually	 	 	Chris
    Bechtel, Chief Executive Officer


 


[Signature
Page to Employee Employment Agreement]


 




    	 



    	 



    

 


EXHIBIT
A


Permitted
Activities


None


 




    	 



    	 



    

 


EXHIBIT
B


Restricted
Stock Unit Agreement