Document:

Document

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is made by and between GrowGeneration Corp., a Colorado corporation (“Company”), and Michael Salaman (“Employee”), to be effective as of January 1, 2023 (the “Effective Date”).
WHEREAS, Company desires to employ Employee on the terms and conditions set forth herein, and Employee desires to accept employment with Company on such terms and conditions.
NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:
1.   EMPLOYMENT AND DUTIES.
1.1      Position.  Employee will be employed by Company as its President, reporting to the Board of Directors.  Employee’s duties and responsibilities will be such as are consistent with Employee’s position, as more fully defined by Company from time to time, as well as such other duties and responsibilities as Company may reasonably assign to Employee from time to time.  In addition, Employee shall, if requested by Company, serve as an officer or director of any subsidiary of Company (such subsidiaries together with Company, the “Group Companies”) for no additional compensation.
1.2      Full Attention.  Employee shall devote substantially all Employee’s business time and attention exclusively to affairs of the Group Companies and discharge Employee’s duties and responsibilities hereunder faithfully and to the best of Employee’s ability. Employee shall not, without the prior written consent of Company, engage in any other business, profession, or occupation for compensation or otherwise which would conflict or interfere with the performance of Employee’s duties and responsibilities hereunder.  Notwithstanding the foregoing, Employee may participate in reasonable levels of charitable, civic, trade organization, and similar activities and passive personal investment activities, provided that such activities do not, as determined by Company in its reasonable discretion, create an actual or apparent conflict of interest, injure Company or its reputation, violate any provision of this Agreement, any other contract between Employee and any Group Company, or any Group Company’s policy in effect from time to time, or otherwise materially interfere with the performance of Employee’s duties under this Agreement.
2.   TERM AND TERMINATION OF EMPLOYMENT.
2.1      Term. The term of this Agreement will begin on the Effective Date and continue for two years, unless terminated earlier pursuant to Section 2.2.  Termination or expiration of this Agreement does not relieve either party of obligations which by their nature or terms are to be performed after termination or expiration.  The period of Employee’s employment pursuant to this Agreement will be the “Term.”  
           2.1.1 For the avoidance of doubt, prior to the Effective Date, the terms of Employee’s employment with Company will continue to be governed by that certain Executive Employment Agreement, dated as of March 23, 2020, between Employee and Company (the “Prior Agreement”); provided that, notwithstanding anything to the contrary contained in this Agreement or the Prior Agreement, the parties hereby agree that the Prior Agreement will not automatically renew at the end of the current term thereof.  Notwithstanding that this Agreement may be executed by the parties prior to the Effective Date, if Employee’s employment with Company terminates prior to the Effective Date for any reason, this Agreement will automatically become null and void and of no further force or effect as of the date of such termination of employment.
2.2      Termination. This Agreement may be terminated at any time, with or without reason or Cause (defined below), (a) by Company upon written notice to Employee (subject to Section 3.7, if terminated without Cause), or (b) by Employee upon at least 90 days written notice to Company; provided that, if Employee provides notice to terminate, Company may elect to terminate this Agreement at any time before expiration of the notice period and pay the base salary and benefits to which Employee would have been entitled but for such election to terminate sooner. Promptly following termination or expiration of this Agreement, Company shall pay to Employee such employee benefits (excluding base 

salary, annual bonus, and equity compensation), if any, to which Employee may be entitled under the Company’s employee benefit plans and/or applicable law as of the termination or expiration date; provided that, in no event shall Employee be entitled to any payments in the nature of severance or termination payments except as specifically provided in Section 3.7.  On termination or expiration of this Agreement, Employee shall be deemed to have resigned from all positions that Employee holds as an officer, manager or director of any Group Company; provided that termination or expiration of this Agreement alone will not constitute Employee’s resignation from the Board of Directors of GrowGeneration Corp.
3.   COMPENSATION.  During the Term, Company shall provide the following compensation to Employee:
1.Base Salary.  Employee will receive an annualized base salary of $500,000.  Employee’s base salary may be increased or decreased from time to time at the sole discretion of Company, provided that such base salary may not be decreased below the amount stated in this Section 3.1.  Base salary will be paid in accordance with Company’s standard payroll practices as they may exist from time to time.
2.Annual Bonus.  Employee will be eligible for an annual performance bonus in the target amount of 50% of base salary (with a maximum amount of 100% of base salary) based upon Employee’s achievement of performance goals established by Company in its sole discretion.  Any bonus to be paid for a year will be paid in accordance with Company’s standard payroll practices as they may exist from time to time not later than 30 days after the filing of Company’s Annual Report on Form 10-K.  No pro-rated bonus will be paid for any partial year of employment except as expressly provided in Section 3.7.
3.Equity.  Company will grant the following equity award to Employee pursuant to its Amended and Restated 2018 Equity Incentive Plan or any successor plan thereto (the “Plan”), subject to Employee’s execution and delivery of Company’s then-current form of award agreement and covenant agreement: 100,000 restricted stock units, vesting in equal installments each June 15 and December 15 during the Term.  All other terms and conditions of such awards shall be governed by the terms and conditions of the Plan and the applicable award agreement(s) and covenant agreement(s).
4.Time Off.  Employee will be eligible for three weeks’ paid vacation per year and may accrue up to four weeks of paid vacation total.  Employee will also be entitled to time off for illness, bereavement, parental leave and other personal matters as provided in Company’s policies in effect from time to time, which will not accrue.  
5.Other Employment Benefits.  Employee will be allowed to participate in Company’s other benefit plans and programs on the same basis as other Company Employees, subject to the eligibility requirements of such plans or programs.  Such benefit plans and programs may be adopted, modified or terminated by Company from time to time in its sole discretion, subject to the terms of such benefit plans and applicable law, and may include, without limitation, medical, health and dental care, life insurance, disability protection, 401(k) and retirement plans.
6.Expense Reimbursement.  Company shall reimburse Employee for out-of-pocket expenses reasonably incurred by Employee in the performance of Employee’s duties under this Agreement, subject to Company’s policies regarding expense reimbursement in effect from time to time.
7.Severance.  
3.6.1 If Company terminates Employee’s employment without Cause (defined below), and provided that Employee executes and returns to Company a release of claims in a form reasonably acceptable to Company that becomes fully effective within 60 days after the effective date of such termination (“Termination Date”), Company shall provide severance pay to Employee in an amount equal to the sum of: (a) three months of base salary; (b) three months of annual bonus at Employee’s target amount; and (c) three months of Company’s contribution to Employee’s health and welfare benefits, in each case determined at the rates in effect as of the Termination Date. Severance pay will be paid over a period of three months in equal installments on Company’s regular paydays, commencing on 

the first payday that is at least 60 days after the Termination Date; provided that the first such payment will include all sums that would have been paid had payment commenced on the first payday after the Termination Date.  
3.6.2 As used in this Agreement, “Cause” means Employee’s: (a) indictment for or conviction of (including plea of guilty or no-contest to) any felony or any crime involving dishonesty; (b) engagement in embezzlement, misappropriation, or fraud, (c) engagement in illegal conduct or gross misconduct in connection with Employee’s employment that is materially injurious to the Group Companies, which includes sexual assault, sexual harassment, or similar misconduct; (d) refusal or intentional failure to comply with any lawful written directive of the Board of Directors reasonably within the scope of Employee’s duties and responsibilities; (e) material breach of Employee’s fiduciary duty or duty of loyalty to any Group Company; or (f) material breach of this Agreement, any other contract with any Group Company or any policy of any Group Company that is not cured (if capable of cure) within 10 business days after written notice to Employee identifying the breach; provided no such opportunity to cure shall be required if a substantially similar breach occurred within the preceding 12-month period.
1.Clawback. Notwithstanding anything in this Agreement to the contrary, any incentive-based or other compensation paid to Employee under this Agreement or any other agreement or arrangement with Company which is subject to recovery under any law, government 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 (or any policy adopted by Company pursuant to any such law, government regulation or stock exchange listing requirement). Company will make any determination for clawback or recovery in its sole discretion and in accordance with any applicable law or regulation.
4.   RESTRICTIVE COVENANTS.  Employee acknowledges Employee’s non-competition, non-solicitation, non-disparagement, confidentiality, and other obligations contained in the covenant agreement(s) executed by Employee in connection with Employee’s equity awards.  In the event of a conflict between any such covenant agreements, the legally enforceable provision affording the greatest protection to Company shall prevail.  Such obligations are incorporated herein by this reference, as if set forth fully herein.
5.   INDEMNIFICATION AND INSURANCE.  In the event that Employee is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a “Proceeding”), other than any Proceeding initiated by Employee or any Group Company related to any dispute between Employee and such Group Company with respect to this Agreement or Employee’s employment hereunder, by reason of the fact that Employee is or was a director or officer of a Group Company, or is or was serving at the request of the Company as a director, officer, member, employee, or agent of another corporation or a partnership, joint venture, trust, or other enterprise, Employee shall be indemnified and held harmless by Company to the maximum extent permitted under applicable law and Company’s bylaws from and against any liabilities, costs, claims, and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’ fees). Costs and expenses incurred by Employee in defense of such Proceeding (including attorneys’ fees) shall be paid by Company in advance of the final disposition of such litigation upon receipt by Company of: (i) a written request for payment; (ii) appropriate documentation evidencing the incurrence, amount, and nature of the costs and expenses for which payment is being sought; and (iii) an undertaking adequate under applicable law made by or on behalf of Employee to repay such amounts if it is ultimately determined that Employee is not entitled to be indemnified by Company under this Agreement.  In addition, during the Term and for a period of six years thereafter, Company or any successor to Company shall purchase and maintain, at its own expense, directors’ and officers’ liability insurance providing commercially reasonable coverage to Employee.
6.   ADDITIONAL PROVISIONS
1.Severability of Provisions. If any of the provisions of this Agreement will be or become invalid or illegal under any provision of applicable law, the remainder of the Agreement will not be affected thereby.

2.Modification; Waiver.  Except for judicial modification of restrictive covenants as provided in the covenant agreement(s) executed by Employee in connection with Employee’s equity awards, this Agreement cannot be amended or modified except by a writing signed by each of the parties.  No waiver of any provision will be deemed to have occurred unless memorialized in a writing signed by the waiving party.  If either party should waive any breach of any provision of this Agreement, such party will not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.
3.Compliance with Section 409A.  The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of 1986 (“Section 409A”), to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement will be interpreted to be in compliance with Section 409A.  The payment of any annual bonus is intended to be a “short term deferral” under Section 409A and any amount payable will be paid in a lump sum on a date determined by Company before the end of the “short term deferral” period” with respect to such bonus.  To the extent required to avoid an accelerated or additional tax under Section 409A, amounts reimbursable to Employee under this Agreement for expenses will be paid to Employee on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement during one year may not affect the amounts reimbursable in any subsequent year.  Notwithstanding any other provision in this Agreement or in any other document, Company will not be responsible for the payment of any applicable taxes incurred by Employee pursuant to this Agreement, including with respect to compliance pursuant to Section 409A.  Company makes no representation that any or all of the payments and benefits described in this Agreement will be exempt from or comply with Section 409A.
4.Governing Law; Dispute Resolution. This Agreement will be governed by the laws of the State of Colorado and applicable federal law, without regard to any state’s principles regarding conflict of laws.  Any action arising out of or relating to this Agreement will be subject to the arbitration or other dispute resolution provisions contained in the most recent (as of the date such action is initiated) covenant agreement executed by Employee in connection with Employee’s equity awards.
5.Attorney Fees.  In the event of a breach or threatened breach of this Agreement, the non-breaching party will be entitled to recover such party’s attorney fees incurred as a result of such breach or threatened breach.  
6.Binding Effect. This Agreement will be binding on and inure to the benefit of the parties hereto and their successors, assigns, and personal representatives and heirs; provided, however, that this Agreement may not be assignable by Employee.
7.Withholding and Deductions.  All payments of base salary, bonus and severance pursuant to this Agreement will be subject to normal withholding for taxes and other applicable payroll deductions.
8.Construction.  This Agreement will be deemed to have been drafted jointly by the parties, and no ambiguity in the Agreement will be construed against either Company or Employee.  
9.Titles and Headings.  Titles and headings in this Agreement are for purpose of reference only and will not limit, define or otherwise affect the provisions of this Agreement.
10.Complete Agreement.  This Agreement (along with the other agreements referenced herein) is the entire agreement between the parties regarding the matters addressed herein, and it and supersedes and replaces all prior agreements, representations, negotiations or discussions between the parties regarding such matters, whether written or oral.  This Agreement may be signed in counterparts, including fax counterparts, and all counterparts together constitute one fully-executed agreement.

EMPLOYEE:                                                             COMPANY:  

                                                                                 GROWGENERATION CORP.

  /s/ Michael Salaman                                      By:      /s/ Darren Lampert                                            Michael Salaman                                                        Darren Lampert, CEO

Date:  9/1/2022                                                            Date: 9/1/2022Exhibit 10.1

 

Execution Copy

 

EMPLOYMENT AGREEMENT

 

This AGREEMENT made as of
September 1, 2022 (the “Effective Date”), by and between SG BLOCKS, INC., having its principal office at 5011 Gate
Parkway, Building 100, Suite 100, Jacksonville, Florida 32256 (hereinafter referred to as the “Company”), and Marc
Brune, currently residing at 1100 Biscayne Boulevard, Apt. 301, Miami, Florida 33132 (hereinafter referred to as “Executive”).

 

W I T N E S S E T H

 

WHEREAS, the Company desires to employ Executive,
and Executive desires to be employed by the Company, pursuant to the terms and conditions hereof.

 

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

 

1.  EMPLOYMENT.
The Company hereby employs Executive and Executive hereby agrees to be employed by the Company, subject to the terms and conditions hereinafter
set forth.

 

2.   TERM.
Executive’s employment shall commence as of the Effective Date and unless earlier terminated as provided herein, the initial term
of this Agreement will be for a period of two (2) years, commencing on the date of this Agreement (the “Initial Term”);
provided that thereafter this Agreement will be extended for additional one (1) year periods unless, no later than sixty (60) days prior
to the expiration of the Initial Term or any such one (1) year extension period, as the case may be, either the Company or Executive provides
notice to the other of its intent to terminate this Agreement upon the completion of the Initial Term or any such one (1) year extension
period (the period of Executive’s employment by the Company under this Agreement will be referred to as the “Term”).

 

3.   EXECUTIVE’S
EMPLOYMENT WITH THE COMPANY. The Executive shall perform such duties and functions as the Director of Finance as set forth on Schedule
A annexed hereto and as may be determined from time to time by the Company’s Chief Executive Officer, Paul Galvin (“CEO”),
and following his or her appointment, if any, the Company’s Chief Financial Officer. Executive shall report to the Company’s
CEO, and any other officer or director as determined by the CEO. During Executive’s employment with the Company, Executive agrees
to: (i) devote substantially all of Executive’s time, energy, skill and best efforts to the performance of Executive’s job
duties, as assigned by the Company, and to the business of the Company, and shall perform such duties as assigned by the Company –
which duties may change from time to time – in a diligent, trustworthy, and business-like manner and in compliance with all applicable
laws; (ii) use his reasonable best efforts to foster the Company’s interests; and (iii) comply with the Company’s existing
and future policies, manuals and procedures as adopted and provided to Executive; provided that, in the event of any conflict between
any such policy, manual or procedure and the provisions of this Agreement, the provisions of this Agreement shall control. While frequent
travel may be required of Executive in Executive’s performance of Executive’s job duties for the Company, Executive’s
primary work location shall be located in Miami, Florida. Executive shall not at any time during Executive’s employment with the
Company: (a) work on any basis (including, without limitation, part-time or as an independent contractor) for a Competing Business (as
defined in Section (a)); or (b) participate in any way in any other business that is not a Competing Business to the extent that such
participation adversely affects Executive’s performance of Executive’s job duties for the Company or that may or does adversely
affect the Company in any way.

 

     

     

    

 

4.   COMPENSATION.
As compensation for the services to be rendered by Executive here-under, the Company agrees to pay or cause to be paid to Executive, and
Executive agrees to accept, an annual salary of Two Hundred Fifty Thousand Dollars ($250,000) payable in bi-weekly installments on the
15th and last day of each month, commencing on September 1, 2022. The Executive shall also be entitled to receive, and upon
the approval of the Company’s board of directors the Company shall issue, a restricted stock grant (“RSUs”) under
the Company’s Stock Incentive Plan, as amended, for Two Hundred Fifty Thousand (250,000) shares of the Company’s common stock, vesting
quarterly over two (2) years.

 

(a)  Signing
Bonus. The Company shall pay Executive a one-time signing bonus of Fifty Thousand Dollars ($50,000)
on the Effective Date (the “Signing Bonus”), less payroll deductions and all required withholdings. If the Executive resigns
from employment with the Company without Good Reason or the Company terminates the Executive’s employment for Cause, in each case
prior to the first anniversary of the Effective Date, the Executive must repay to the Company a pro rata portion of the Signing Bonus
representing the remainder of the period between the date of termination and the one year anniversary of the Effective Date. If any repayment
is due to the Company pursuant to this Section 4, the Executive agrees that the amount of the repayment due is payable in full immediately
via personal check or payroll deduction and the Executive agrees to permit the Company to deduct this amount from any monies or benefits
due to the Executive including wages, bonuses, reimbursements and/or expenses and any remaining amounts are the Executive’s responsibility,
payable via personal check immediately but in no event later than thirty (30) days of the Executive’s last day of employment with
the Company.

 

5.   ADDITIONAL
COMPENSATION. The Executive shall be eligible for an annual discretionary bonus of up to twenty five percent (25%) of his annual salary
payable in cash. Any bonus awarded will be in the sole and absolute discretion of both the Compensation Committee and the Board of Directors
of the Company. The amount of any such bonus shall depend on the achievement by the Executive and/or the Company of certain objectives
to be established by the Chief Executive Officer in consultation with the Executive, along with such other factors the Board and Compensation
Committee deems relevant. Any such bonus for a given fiscal year shall be payable in one lump sum upon approval by the Board of Directors
of the Company or the Compensation Committee, which shall be obtained at the same time as the bonuses paid to other senior executive officers
of the Company. The Company may also pay Executive such other additional compensation as may from time to time be determined by the Company.

 

6.   EMPLOYEE
BENEFITS. During the period Executive is employed hereunder, Executive shall be permitted to participate in all group health, hospitalization
and disability insurance programs, pension plans and similar benefits that are now or may become available to similarly situated executives
of the Company. During the period Executive is employed hereunder, Executive shall be entitled to vacations in accordance with the vacation
policy of the Company.

 

7.   REIMBURSEMENT
OF EXPENSES. During the period Executive is employed hereunder, the Company shall reimburse Executive for reasonable and necessary
out-of-pocket expenses advanced or expended by Executive or incurred by him for or on behalf of the Company in connection with his duties
hereunder in accordance with its customary policies and practices; provided, however, that Executive shall not expend or incur any such
expenses, individually or in the aggregate, in excess of Five Hundred Dollars ($500.00) without the prior approval of the Company.

 

8.   TERMINATION
OF EMPLOYMENT; EFFECT OF TERMINATION.

 

(a) The Executive’s employment
hereunder may be terminated at any time upon written notice by the Company, upon the occurrence of any of the following events:

 

		(i)	the death of Executive;

 

		(ii)	the disability of Executive (as defined in paragraph (b)); or

 

		(iii)	the determination that there is cause (as hereinafter defined) for such termination upon
ten (10) days’ prior written notice to Executive.

 

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(b)   For
purposes hereof, the term “disability” shall mean the inability of Executive, due to illness, accident or any other physical
or mental incapacity, to perform his duties in a normal manner for a period of three (3) consecutive months or for a total of six (6)
months (whether or not consecutive) in any twelve (12) month period during the term of this Agreement.

 

(c)   For
purposes hereof, “cause” shall mean and be limited to: (i) Executive’s conviction (which, through lapse of time or otherwise,
is not subject to appeal) of any crime or offense involving money or other property of the Company or its subsidiaries or which constitutes
a felony in the jurisdiction involved; (ii) Executive’s performance of any act or his failure to act, for which if he were prosecuted
and convicted, a crime or offense involving money or property of the Company or its subsidiaries, or which would constitute a felony in
the jurisdiction involved would have occurred; (iii) Executive’s breach of any of the representations, warranties or covenants set forth
in this Agreement; (iv) any act of fraud, misappropriation, embezzlement or dishonesty by Executive regarding any aspect of the Company’s
business; or (v) Executive’s continuing, repeated, willful failure or refusal to perform his duties required by this Agreement, provided
that Executive shall have first received written notice from the Company stating with specificity the nature of such failure and refusal
and affording Executive an opportunity, as soon as practicable, to correct the acts or omissions complained of, provided further that
if such breach is not curable, the Company need not provide Executive notice of such breach and wait any cure period before termination
of Executive’s employment. Whether or not (i) an uncurable breach has occurred or (ii) “cause” shall exist in
each case shall be determined by the Board of Directors of the Company in its sole discretion.

 

(d)   The
Executive’s employment hereunder, may also be terminated by the Company at any time upon thirty (30) days prior written notice,
without cause.

 

(e)   In
the event that the Executive’s employment is terminated for cause, Executive will be entitled to only his accrued salary through the termination
date and nothing more. In the event the Executive’s employment is terminated by the Company for any reason other than cause, Executive
shall receive severance equal to six (6) months’ salary and benefits.

 

(f)   Upon
the termination of Executive’s employment with the Company for any reason whatsoever, Executive shall immediately return to the
Company any and all originals and/or copies of the Company’s Confidential Information and/or any other information in his possession
or control provided by or obtained from the Company, including information in the form of originals, paper copies, computer hard drives,
computer disks, e-mails or any other similar or related electronic format. Executive acknowledges and agrees that such information will
at all times remain the exclusive property of the Company and further acknowledges and agrees that he will be responsible for the safekeeping
of any and all such information in his possession or control until it is returned to the Company.

 

(g)
  For purposes hereof, “Good Reason”
will mean any of the following to which the Employee will not consent in writing: (a) a reduction in the Employee’s Base Salary; or (b)
any material reduction in the Employee’s title, authority or responsibilities as Director of Finance.

 

9.   REPRESENTATIONS
AND AGREEMENTS OF EXECUTIVE. The Executive represents and warrants that he is free to enter into this Agreement and to perform the
duties required hereunder, and that there are no employment contracts, restrictive covenants or other restrictions preventing the performance
of his duties hereunder.

 

10.   NON-DISCLOSURE
OF COMPANY INFORMATION. Executive acknowledges that during the course of his employment with the Company, Executive will have access
to and acquire knowledge of Confidential Information (as defined below) relating to the Company, its business, finances, customers and
prospective customers. Executive shall not, during the term of his employment with the Company or at any time thereafter, divulge Confidential
Information belonging to or relating to the Company except to employees or agents of the Company entitled thereto, or use such information
except to discharge his duties as an employee of the Company. For purposes of this Agreement, “Confidential Information” includes,
but is not limited to, all scientific information, technical information, patents, copyrights, trademarks, trade names, trade secrets,
intellectual property, research and development, technologies, inventions, discoveries, designs, methods and processes, know-how, techniques,
procedures, documentation, compositions, concepts, improvements, product specifications, ideas, samples, business plans, financial information,
sales data, vendor information, sources of supply, customer lists, customer prospect lists, price lists, price quotations, computer programs
and software, corporate books, business plans, training materials, employee lists, Company strengths and weaknesses, and Company advertising
and marketing information (“Confidential Information”). This includes information in any form, including original documents,
paper copies, electronic copies, computer disks, computer hard drives, summaries, transcriptions or replications made or acquired by Executive
during his employment with the Company. Confidential Information does not include information which is available in the public domain
and/or which can readily be obtained from a third party who is not bound by a confidentiality obligation.

 

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11.   NON-INTERFERENCE
/ NON-SOLICITATION. Executive agrees that, at all times during his employment with the Company and for a period of one (1) year thereafter
(the “Non-Competition Period”), for any reason whatsoever, Executive shall not, directly or indirectly, by affirmative act
or failure to act, on his own behalf or on behalf of another:

 

(a)   become
employed by, invest in, finance, advise, endorse, perform services for, or otherwise engage in any capacity with any individual, entity
or business that provides the same or substantially similar services and products as the Company, including, without limitation, the provision
of code-engineered cargo shipping containers for use in the construction industry (each, a “Competing Business”) anywhere
in North America; provided, however, that (i) Executive shall be allowed to participate in real estate developments during
the course of his employment as long as it does not conflict or interfere with his duties to the Company as set forth in this Agreement;
and (ii) the ownership by Executive of any stock listed on any national securities exchange of any corporation conducting a Competing
Business shall not be deemed a violation of this Agreement if the aggregate amount of such stock owned by Executive does not exceed two
percent (2%) of the total outstanding stock of such corporation;

 

(b)   attempt
to cause, request or induce any client, customer, contractor, agent, supplier or other business associate of the Company with whom Executive
had contact, or any person or entity who was a prospective client or customer of the Company with whom Executive had contact within the
eighteen (18) month period just prior to the termination of Executive’s employment with the Company (“Company Customers”),
to curtail, divert or cancel any business with the Company, or otherwise interfere in any way with the business, business relationships,
contracts, business opportunities, or goodwill of the Company or do anything to adversely affect the business relationship between the
Company and its accounts, suppliers, clients, customers and contractors; or

 

(c)   solicit
for employment, employ or otherwise induce or encourage any Company employee, agent or representative to terminate his/her employment
or relationship with the Company, or do anything to adversely affect the relationship between the Company and any of its employees, agents
or representatives.

 

Executive acknowledges that
the restrictions contained in Sections 10 and 11, in view of the nature of the Company’s business and the Company’s Confidential
Information and business goodwill, are reasonable and necessary to protect the Company’s legitimate business interests and goodwill.
Executive shall be entitled to a 30-day cure period upon written notice by the Company of Executive’s breach of Sections 10 and
11 of this Agreement. In the event such breach is not cured by Executive within such 30-day period, Executive agrees that the Company
shall be entitled to a temporary restraining order and injunctive relief, without the posting of bond, restraining Executive from the
commission of any breach of Sections 10 and/or 11 and to recover the Company’s attorneys’ fees, witness fees, costs and expenses
related to any breach or threatened breach of this Agreement or any action or proceeding brought relating to this Agreement. Nothing contained
in this Agreement shall be construed as prohibiting the Company from pursuing any other remedies available to it for any breach or threatened
breach, including, without limitation, the recovery of money damages. The existence of any claim or cause of action by Executive against
the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of Sections
10 and/or 11 of this Agreement. If Executive violates any of the restrictions contained in Section 5, the Non-Competition Period will
be tolled and will not run in favor of Executive, and the Company shall have no further obligations to Executive under this Agreement,
until such time that Executive cures the violation to the satisfaction of the Company. If Executive, in the future, seeks or is offered
employment, or any other position with a Competing Business, Executive agrees to inform the Competing Business, before accepting employment
or any other position, of the existence of the restrictions in Sections 10 and 11. Further, before taking any employment or other position
with any Competing Business during the Non-Competition Period, Executive agrees to give prior written notice to the Company of the name
of such Competing Business. The Company shall be entitled to advise such Competing Business of the provisions of Sections 10 and 11 (including
the provision of a copy of this Agreement) and to otherwise deal with such Competing Business to ensure that the provisions of Sections
10 and 11 are enforced and duly discharged.

 

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12.   OWNERSHIP
OF INFORMATION, INVENTIONS, AND ORIGINAL WORKS. “Materials” means all ideas, inventions, works of authorship, concepts,
processes, formulas, data, computer programs, improvements, discoveries, developments, designs, and techniques related to the Business
or any current or planned line of business of the Company that are authored, conceived, or reduced to practice by Executive, either alone
or jointly with others, during Executive’s employment with the Company. “Intellectual Property Rights” means patents,
copyrights, trademarks, trade secrets, and moral rights. All Intellectual Property Rights in Materials shall be and shall remain owned
by the Company and shall be Confidential Information. To the extent applicable, the Materials are to be considered works made for hire,
as that term is defined in the United States Copyright Act (17 U.S.C. § 101). Executive hereby irrevocably assigns and shall be deemed
to have assigned to the Company all of Executive’s right, title and interest in and to any and all Materials, including any related
Intellectual Property Rights, whether or not patentable or registrable under copyright or similar statutes. Executive recognizes that
this Agreement does not require assignment of any Materials: (i) developed entirely on Executive’s own time; and (ii) developed
without equipment, supplies, facility, trade secrets, or proprietary information of the Company. Executive will promptly and fully disclose
to the Company any and all Materials at the time such Materials are first reduced to practice or first fixed in a tangible form. Executive
will, at the Company’s expense, assist the Company to obtain and enforce United States and foreign Intellectual Property Rights
relating to Materials. Executive will execute, verify and deliver documents and perform other acts as the Company may reasonably request
for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Intellectual Property Rights and the assignment
thereof. All inventions and works of authorship, if any, patented or unpatented, registered or unregistered, that Executive made prior
to the Effective Date that are not owned by the Company are listed on an attachment hereto (hereafter referred to as the “Prior
Materials”). If no such list is attached, Executive represents that Executive does not own or possess any Prior Materials. Executive
shall not use any Prior Materials in any manner in connection with the Business. If Executive incorporates Prior Materials owned by Executive,
or in which Executive has an interest, into any Materials, the Company is hereby granted and shall have a nonexclusive, royalty-free,
fully paid-up, irrevocable, perpetual, worldwide, sublicensable (directly or indirectly) license to make, have made, modify, use, sell,
have sold, copy, distribute, create derivative works of, display, perform, and transmit such Prior Materials.

 

13.   NON-DISPARAGEMENT.
Executive agrees that the Company’s goodwill and reputation are assets of great value to the Company which were obtained through
great cost, time and effort. Therefore, Executive agrees that during Executive’s employment with the Company and after the termination
of Executive’s employment for any reason, Executive will not in any way disparage, libel or defame the Company, its business or
business practices, its products or services, or its current, past or future employees, officers, directors or owners or interfere in
any way with the Company’s operations or any of the Company’s relationships with the Company’s employees, business partners,
investors, vendors and/or independent contractors. This Section 13 does not prohibit Executive from providing truthful testimony, providing
truthful information as legally required to do so, or participating in any governmental proceeding.

 

14.   RIGHT
TO INJUNCTION. The Executive recognizes that the services to be rendered by him hereunder are of a special, unique, unusual, extraordinary
and intellectual character involving skill of the highest order and giving them peculiar value, the loss of which cannot be adequately
compensated for in damages. In the event of a breach of this Agreement by Executive, the Company shall be entitled to injunctive relief
or any other legal or equitable remedies. Executive agrees that the Company may recover by appropriate action the amount of the actual
damage caused the Company by any failure, refusal or neglect of Executive to perform his agreements, representations and warranties herein
contained. The remedies provided in this Agreement shall be deemed cumulative and the exercise of one shall not preclude the exercise
of any other remedy at law or in equity for the same event or any other event.

 

    5

     

    

 

15.   AMENDMENT
OR ALTERATION. No amendment or alteration of the terms of this Agreement shall be valid unless made in writing and signed by both
of the parties hereto.

 

16.   GOVERNING
LAW. All matters concerning the validity, construction, interpretation and performance under this Agreement shall be governed by the
laws of the State of New York, without giving effect to any conflict of laws principles thereunder.

 

17.   SEVERABILITY.
The holding of any provision of this Agreement to be illegal, invalid or unenforceable by a court of competent jurisdiction shall not
affect any other provision of this Agreement, which shall remain in full force and effect.

 

18.   NOTICES.
Any notices required or permitted to be given hereunder shall be sufficient if in writing, and if delivered by hand or sent by certified
mail to the addresses set forth above or such other address as either party may from time to time designate in writing to the other and
shall be deemed given as of the date of deliver of the mailing.

 

19.   WAIVER
OR BREACH. It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate or be construed
as a waiver of any subsequent breach by that same party.

 

20.   ENTIRE
AGREEMENT AND BINDING EFFECT. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof
and shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, heirs, distributees,
successors and assigns.

 

21.   ASSIGNMENT.
This Agreement may not be transferred or assigned by either party with-out the prior written consent of the other party.

 

22.   SURVIVAL.
The termination of Executive’s employment hereunder shall not affect the enforceability of Sections 10, 11, 12, 13 and 14 hereof.

 

23.   FURTHER
ASSURANCES. The parties agree to execute and deliver all such further instruments and take such other and further action as may be
reasonably necessary or appropriate to carry out the provisions of this Agreement.

 

24.   HEADINGS.
The Section headings appearing in this Agreement are for purposes of easy reference and shall not be considered a part of this Agreement
or in any way modify, amend or affect its provisions.

 

25.   COUNTERPARTS.
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together, shall constitute
one instrument.

 

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IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date and year first above written.

 

	SG BLOCKS, INC. 	 	EXECUTIVE
	 	 	 	 
	By: 	/s/ Paul Galvin	 	/s/ Marc Brune
	Name:  	Paul Galvin	 	Marc Brune
	Title: 	Chairman and CEO	 	 

 

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SCHEDULE A

 

Duties of Director of Finance:

 

Oversee Accounting and Finance

Assist in HR Management

Oversee capital markets work and management

Contribute to IR, PR and corporate strategy

Assist in developing capital sources for
SG Dev Co at the project level

Participate in platform wide business
development

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